2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; recodifying and making 1.3 technical amendments to kindergarten through grade 12 1.4 education statutes; amending Minnesota Statutes 1996, 1.5 sections 120.02, subdivisions 1, 13, 14, 15, and 18; 1.6 120.06, subdivisions 1 and 2a; 120.062, subdivisions 1.7 4, 5, and 8a; 120.0621, as amended; 120.064, 1.8 subdivisions 4, 4a, 5, 7, 9, 11, 12, 13, 14, 15, 17, 1.9 19, 20, 21, 22, and 24; 120.075, subdivisions 1, 2, 1.10 3a, and 4; 120.0751, subdivisions 1, 2, 3, 4, and 5; 1.11 120.0752, subdivisions 1, 2, and 3; 120.08; 120.101, 1.12 subdivisions 5a, 7, 8, 9, and 10; 120.102, 1.13 subdivisions 1, 3, and 4; 120.103, subdivisions 3, 4, 1.14 5, and 6; 120.11; 120.14; 120.17, subdivisions 1, 1b, 1.15 2, 3, 3a, 3b, 3d, 4, 4a, 5, 5a, 6, 7, 7a, 8a, 9, 10, 1.16 16, 18, and 19; 120.1701, subdivisions 2, 4, 5, 6, 7, 1.17 8, 8a, 9, 10, 11, 12, 15, 17, 19, 20, 21, and 22; 1.18 120.172, subdivision 2; 120.173, subdivisions 1, 3, 4, 1.19 and 6; 120.1811; 120.182; 120.183; 120.185; 120.188; 1.20 120.189; 120.190; 120.59; 120.60; 120.61; 120.62; 1.21 120.63; 120.64; 120.66; 120.73, subdivisions 1, 2a, 1.22 2b, 3, and 4; 120.74; 120.75; 120.76; 120.80; 121.11, 1.23 subdivision 7; 121.1115, subdivisions 1 and 2; 1.24 121.155; 121.201; 121.203, subdivision 1; 121.207, 1.25 subdivisions 2 and 3; 121.585, subdivisions 2, 6, and 1.26 7; 121.615, subdivision 11; 121.704; 121.705, 1.27 subdivision 2; 121.706; 121.707, subdivisions 3, 4, 5, 1.28 6, and 7; 121.708; 121.710, subdivisions 2 and 3; 1.29 121.831, subdivisions 6, 7, 8, 9, 10, 11, and 12; 1.30 121.835, subdivisions 4, 5, 7, and 8; 121.8355, 1.31 subdivisions 2, 3, 5, and 6; 121.88, subdivisions 2, 1.32 3, 4, 6, 7, and 9; 121.882, subdivisions 1, 2b, 3, 7, 1.33 7a, 8, and 9; 121.885, subdivisions 1 and 4; 121.904, 1.34 subdivisions 1, 2, 3, 4c, and 13; 121.906; 121.908; 1.35 121.911; 121.912, subdivisions 1a, 1b, 2, 3, 5, and 6; 1.36 121.9121, subdivisions 2 and 4; 121.914, subdivisions 1.37 2, 3, 4, 5, 6, 7, and 8; 121.917; 122.01; 122.02; 1.38 122.03; 122.21; 122.22, subdivisions 1, 4, 5, 6, 7a, 1.39 9, 13, 14, 18, 20, and 21; 122.23, subdivisions 2, 2b, 1.40 3, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 16c, 18, 18a, 1.41 and 20; 122.241; 122.242, subdivisions 1, 3, 8, and 9; 1.42 122.243; 122.245, subdivision 2; 122.246; 122.247, 1.43 subdivisions 2 and 2a; 122.248; 122.25, subdivisions 2 1.44 and 3; 122.32; 122.34; 122.355; 122.41; 122.43; 1.45 122.44; 122.45, subdivisions 2 and 3a; 122.46; 122.47; 1.46 122.48; 122.531, subdivisions 2c, 5a, and 9; 122.5311, 2.1 subdivision 1; 122.532, subdivisions 2, 3a, and 4; 2.2 122.535, subdivisions 2, 3, 4, 5, and 6; 122.541, 2.3 subdivisions 1, 2, 4, 5, 6, and 7; 122.895; 122.91, 2.4 subdivisions 2, 2a, 3a, 4, and 6; 122.93, subdivisions 2.5 3 and 8; 122.95, subdivisions 1, 1a, 2, and 4; 123.11, 2.6 subdivisions 1, 2, 3, 4, and 7; 123.12; 123.13; 2.7 123.15; 123.33, subdivisions 1, 2, 2a, 3, 4, 6, 7, 11, 2.8 and 11a; 123.335; 123.34, subdivisions 1, 2, 7, 8, 9, 2.9 9a, and 10; 123.35, subdivisions 1, 2, 4, 5, 8a, 9b, 2.10 12, 13, 15, 19a, 19b, 20, and 21; 123.351, 2.11 subdivisions 1, 3, 4, 5, 8, and 8a; 123.3513; 2.12 123.3514, subdivisions 3, 4b, 4d, 5, 6, 6b, 7a, and 2.13 7b; 123.36, subdivisions 1, 5, 10, 11, 13, and 14; 2.14 123.37, subdivisions 1, 1a, and 1b; 123.38, 2.15 subdivisions 1, 2, 2a, 2b, and 3; 123.39, subdivisions 2.16 1, 2, 8, 8a, 8b, 8c, 8d, 8e, 9a, 11, 12, 13, 14, 15, 2.17 and 16; 123.40, subdivisions 1, 2, and 8; 123.41; 2.18 123.582, subdivision 2; 123.63; 123.64; 123.66; 2.19 123.681; 123.70, subdivisions 2, 4, and 8; 123.702, 2.20 subdivisions 1, 1b, 2, 3, 4, 4a, 5, 6, and 7; 123.704; 2.21 123.7045; 123.71; 123.72; 123.75, subdivisions 2, 3, 2.22 and 5; 123.751, subdivisions 1, 2, and 3; 123.76; 2.23 123.78, subdivisions 1a and 2; 123.79, subdivision 1; 2.24 123.799, as amended; 123.7991, subdivision 3; 123.801; 2.25 123.805; 123.932, subdivision 1b; 123.933; 123.935, 2.26 subdivisions 1, 2, 4, 5, and 6; 123.936; 123.9361; 2.27 123.9362; 123.947; 124.06; 124.07, subdivision 2; 2.28 124.078; 124.08; 124.09; 124.10, subdivisions 1 and 2; 2.29 124.12; 124.14, subdivisions 2, 3, 3a, 4, 6, 7, and 8; 2.30 124.15, subdivisions 2, 2a, 3, 4, 5, 6, and 8; 124.17, 2.31 subdivisions 1f, 2, 2a, 2b, and by adding 2.32 subdivisions; 124.175; 124.19, subdivision 5; 124.195, 2.33 subdivisions 1, 3, 3a, 3b, 4, 5, 6, and 14; 124.196; 2.34 124.2131, subdivisions 1, 2, 3a, 5, 6, 7, 8, 9, and 2.35 11; 124.214; 124.225, subdivisions 7f, 8l, 8m, and 9; 2.36 124.227; 124.239, subdivision 3; 124.242; 124.248, 2.37 subdivisions 1 and 1a; 124.255; 124.26, subdivision 2.38 1c; 124.2601, subdivision 7; 124.2605; 124.2615, 2.39 subdivision 4; 124.2711, as amended; 124.2713, 2.40 subdivision 7; 124.2715, subdivision 3; 124.2716, 2.41 subdivisions 1 and 2; 124.2725, subdivision 15; 2.42 124.2726, subdivisions 1, 2, and 4; 124.2727, 2.43 subdivisions 6a, as added, 6c, as added, and 9; 2.44 124.273, subdivisions 3, 4, 6, and 7; 124.276, 2.45 subdivisions 1 and 3; 124.278, subdivision 3; 124.311, 2.46 subdivision 1; 124.32; 124.3201, subdivisions 5, 6, 2.47 and 7; 124.322, subdivision 1; 124.35; 124.37; 124.38, 2.48 subdivisions 1, 4a, and 7; 124.381; 124.39; 124.40; 2.49 124.41, subdivision 3; 124.42, as amended; 124.431, 2.50 subdivisions 4, 5, 6, 10, 12, 13, and 14; 124.44; 2.51 124.46, as amended; 124.48, as amended; 124.492; 2.52 124.493, subdivision 1; 124.494, subdivisions 1, 2, 2.53 2a, 3, 5, and 7; 124.4945; 124.511; 124.573, 2.54 subdivisions 2, 2b, 2e, 2f, 3, 3a, and 5a; 124.625; 2.55 124.63; 124.646; 124.6462; 124.6469, subdivision 3; 2.56 124.647; 124.6471; 124.6472; 124.648, as amended; 2.57 124.71, subdivision 1; 124.72; 124.73; 124.74; 124.75; 2.58 124.755, subdivisions 2, 3, 4, 5, 6, 7, 8, and 9; 2.59 124.82, subdivisions 1 and 3; 124.83, subdivision 8; 2.60 124.84, subdivisions 1 and 2; 124.85, subdivisions 2, 2.61 2a, 2b, 2c, 5, 6, and 7; 124.86, subdivisions 1, 3, 2.62 and 4; 124.90; 124.91, subdivisions 4 and 6; 124.912, 2.63 subdivisions 7 and 9; 124.914; 124.916, as amended; 2.64 124.918, subdivisions 2, 3, and 7; 124.95, subdivision 2.65 1; 124.97; 124A.02, subdivisions 1, 3a, 20, 21, 22, 2.66 23, and 24; 124A.029, subdivisions 1, 3, and 4; 2.67 124A.03, subdivisions 2, 2a, and 3c; 124A.0311, 2.68 subdivisions 2, 3, and 4; 124A.032; 124A.034; 2.69 124A.035; 124A.036, as amended; 124A.04, as amended; 2.70 124A.22, subdivisions 2a, 5, 8, 12, and 14, as added; 2.71 124A.225, subdivisions 4 and 5; 124A.29; 124A.30; 3.1 124C.07; 124C.08, subdivisions 2 and 3; 124C.09; 3.2 124C.12, subdivision 2; 124C.41, subdivision 4; 3.3 124C.45, subdivision 1; 124C.49; 124C.498, as amended; 3.4 124C.60, subdivision 2; 124C.72, subdivision 2; 3.5 124C.73, subdivision 3; 125.03, subdivisions 1 and 6; 3.6 125.04; 125.05, subdivisions 1, 1a, 6, and 8; 125.06; 3.7 125.09; 125.11; 125.12, subdivisions 1a, 2, 2a, 3, 3b, 3.8 4, 6, 6a, 6b, 7, 8, 9, 9a, 10, 11, and 13; 125.121, 3.9 subdivisions 1 and 2; 125.135; 125.138, subdivisions 3.10 1, 3, 4, and 5; 125.16; 125.17, subdivisions 2b, 3, 3.11 3b, 4, 5, 6, 7, 8, 9, 10, 10a, 11, and 12; 125.18; 3.12 125.181; 125.183, subdivisions 1, 4, and 5; 125.184; 3.13 125.185, subdivisions 1, 2, 4, 5, and 7; 125.187; 3.14 125.188, subdivisions 1, 3, and 5; 125.1885, 3.15 subdivision 5; 125.189; 125.1895, subdivision 4; 3.16 125.211, subdivision 2; 125.230, subdivisions 4, 6, 3.17 and 7; 125.231, subdivision 3; 125.53; 125.54; 125.60, 3.18 subdivisions 2, 3, 4, 6a, and 8; 125.611, subdivisions 3.19 1 and 13; 125.62, subdivisions 2, 3, and 7; 125.623, 3.20 subdivision 3; 125.702; 125.703; 125.704, subdivision 3.21 1; 125.705, subdivisions 1, 3, 4, and 5; 125.80; 3.22 126.05; 126.12; 126.13; 126.14; 126.15, subdivisions 2 3.23 and 3; 126.1995; 126.21, subdivisions 3 and 5; 126.22, 3.24 subdivisions 5 and 6; 126.235; 126.239, subdivision 1; 3.25 126.262, subdivisions 3 and 6; 126.264; 126.265; 3.26 126.266, subdivision 1; 126.267; 126.36, subdivisions 3.27 1, 5, and 7; 126.43, subdivisions 1 and 2; 126.48, 3.28 subdivisions 1, 2, 3, 4, and 5; 126.49, subdivisions 3.29 1, 5, 6, and 8; 126.50; 126.501; 126.51, subdivisions 3.30 1a and 2; 126.52, subdivisions 5 and 8; 126.531, 3.31 subdivision 1; 126.54, subdivisions 1, 2, 3, 4, 5, and 3.32 6; 126.56, subdivision 6; 126.69, subdivision 1; 3.33 126.70, subdivisions 1 and 2a; 126.72, subdivisions 3 3.34 and 6; 126.78, subdivision 4; 126.84, subdivisions 1, 3.35 3, 4, and 5; 126A.01; 126B.01, subdivisions 2 and 4; 3.36 126B.10; 127.02; 127.03; 127.04; 127.17, subdivisions 3.37 1, 3, and 4; 127.19; 127.20; 127.40, subdivision 4; 3.38 127.41; 127.411; 127.412; 127.413; 127.42; 127.44; 3.39 127.45, subdivision 2; 127.455; 127.46; 127.47, 3.40 subdivision 2; 127.48; 129C.10, subdivisions 3a, 3b, 3.41 4, and 6; and 129C.15; Minnesota Statutes 1997 3.42 Supplement, sections 120.05; 120.062, subdivisions 3, 3.43 6, and 7; 120.064, subdivisions 8, 10, 14a, and 20a; 3.44 120.101, subdivisions 5 and 5c; 120.1015; 120.1701, 3.45 subdivision 3; 120.181; 121.1113, subdivision 1; 3.46 121.615, subdivisions 2, 3, 9, and 10; 121.831, 3.47 subdivision 3; 121.88, subdivision 10; 121.882, 3.48 subdivision 2; 121.904, subdivision 4a; 121.912, 3.49 subdivision 1; 123.35, subdivision 8; 123.3514, 3.50 subdivisions 4, 4a, 4e, 6c, and 8; 123.7991, 3.51 subdivision 2; 124.155, subdivisions 1 and 2; 124.17, 3.52 subdivisions 1 and 4; 124.195, subdivisions 2, 7, and 3.53 10; 124.2445; 124.2455; 124.248, subdivisions 3 and 4; 3.54 124.26, subdivision 2; 124.2601, subdivision 6; 3.55 124.2615, subdivision 2; 124.2713, subdivision 8; 3.56 124.321, subdivisions 1 and 2; 124.322, subdivision 3.57 1a; 124.323, subdivision 1; 124.41, subdivision 2; 3.58 124.431, subdivisions 2 and 11; 124.45, subdivision 2; 3.59 124.481; 124.574, subdivision 9; 124.83, subdivision 3.60 1; 124.86, subdivision 2; 124.91, subdivision 5; 3.61 124.912, subdivisions 1 and 6; 124.918, subdivisions 3.62 1, 6, and 8; 124A.22, subdivisions 2, as added, 6, 11, 3.63 13, and 13b, as added; 124A.23, subdivisions 1, 2, and 3.64 3; 124A.28, subdivision 3; 124C.45, subdivision 1a; 3.65 125.05, subdivision 1c; 125.12, subdivision 14; 3.66 126.22, subdivisions 2, 3a, and 8; 126.23, subdivision 3.67 1; 126.51, subdivision 1; 126.531, subdivision 3; 3.68 126.72, subdivision 2; 126.77, subdivision 1; and 3.69 129C.10, subdivision 3; proposing coding for new law 3.70 as Minnesota Statutes, chapters 120B; and 120C; 3.71 repealing Minnesota Statutes 1996, sections 16B.43; 4.1 120.71; 120.72; 120.90; 122.52; 122.532, subdivision 4.2 1; 122.541, subdivision 3; 123.35, subdivision 10; 4.3 123.42; 124.01; 124.19, subdivision 4; 124.2725, 4.4 subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, 4.5 and 16; 124.312, as amended; 124.38, subdivision 9; 4.6 124.472; 124.473; 124.474; 124.476; 124.477; 124.478; 4.7 124.479; 124.71, subdivision 2; 124A.02, subdivisions 4.8 15 and 16; 124A.029, subdivision 2; 124A.03, 4.9 subdivision 3b; 124A.22, subdivision 13f; 124A.225, 4.10 subdivision 6; 124A.31; 124C.55; 124C.56; 124C.57; 4.11 124C.58; 125.10; 126.84, subdivision 6; 127.01; 4.12 127.08; 127.09; 127.10; 127.11; 127.12; 127.13; 4.13 127.15; 127.16; 127.17, subdivision 2; 127.21; and 4.14 127.23; Minnesota Statutes 1997 Supplement, sections 4.15 124.2725, subdivision 11; 124.313; 124.314; and 4.16 124A.26. 4.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 4.18 ARTICLE 1 4.19 CHAPTER 120A 4.20 ENROLLMENT; ATTENDANCE; FEES 4.21 Section 1. Minnesota Statutes 1996, section 120.02, 4.22 subdivision 1, is amended to read: 4.23 Subdivision 1. [SCOPE.] For the purposes of this chapter 4.24 thewords, phrases andterms defined in this sectionshallhave 4.25 the meaningsrespectively ascribed togiven them. 4.26 Sec. 2. Minnesota Statutes 1996, section 120.02, 4.27 subdivision 13, is amended to read: 4.28 Subd. 13. [COMMON DISTRICT.]A"Common district"is4.29 means any school district validly created and existing as a 4.30 common school district or joint common school district as of 4.31 July 1, 1957, or pursuant to the terms of the education code. 4.32 Sec. 3. Minnesota Statutes 1996, section 120.02, 4.33 subdivision 14, is amended to read: 4.34 Subd. 14. [INDEPENDENT DISTRICT.]An"Independent district 4.35 "ismeans any school district validly created and existing as 4.36 an independent, consolidated, joint independent, county or a ten 4.37 or more township district as of July 1, 1957, or pursuant to the 4.38 education code. 4.39 Sec. 4. Minnesota Statutes 1996, section 120.02, 4.40 subdivision 15, is amended to read: 4.41 Subd. 15. [SPECIAL DISTRICT.]A"Special district"is4.42 means a district established by a charter granted by the 4.43 legislature or by a home rule charter including any 5.1 districtwhich isdesignated a special independent school 5.2 district by the legislature. 5.3 Sec. 5. Minnesota Statutes 1996, section 120.02, 5.4 subdivision 18, is amended to read: 5.5 Subd. 18. [SCHOOL DISTRICT TAX.] "School district tax"is5.6 means the tax levied and collected to provide the amount of 5.7 money voted or levied by the district or the board for school 5.8 purposes. 5.9 Sec. 6. Minnesota Statutes 1997 Supplement, section 5.10 120.05, is amended to read: 5.11 120.05 [PUBLIC SCHOOLS.] 5.12 Subd. 2. [DEFINITIONSELEMENTARY SCHOOL.](1)"Elementary 5.13 school" means any school with building, equipment, courses of 5.14 study, class schedules, enrollment of pupils ordinarily in 5.15 prekindergarten through grade 6 or any portion thereof, and 5.16 staff meeting the standards established by the state boardof5.17education. 5.18 The state board of education shall not close a school or 5.19 deny any state aids to a district for its elementary schools 5.20 because of enrollment limitations classified in accordance with 5.21 the provisions of clause (1). 5.22(2)Subd. 3. [MIDDLE SCHOOL.] "Middle school" means any 5.23 school other than a secondary school giving an approved course 5.24 of study in a minimum of three consecutive grades above 4th but 5.25 below 10th with building, equipment, courses of study, class 5.26 schedules, enrollment, and staff meeting the standards 5.27 established by the state board of education. 5.28(3)Subd. 4. [SECONDARY SCHOOL.] "Secondary school" means 5.29 any school with building, equipment, courses of study, class 5.30 schedules, enrollment of pupils ordinarily in grades 7 through 5.31 12 or any portion thereof, and staff meeting the standards 5.32 established by the state board of education. 5.33(4)Subd. 5. [VOCATIONAL CENTER SCHOOL.]A"Vocational 5.34 center school"is onemeans any school serving a group of 5.35 secondary schools with approved areas of secondary vocational 5.36 training and offering vocational secondary and adult programs 6.1 necessary to meet local needs and meeting standards established 6.2 by the state board of education. 6.3 Sec. 7. Minnesota Statutes 1996, section 120.06, 6.4 subdivision 1, is amended to read: 6.5 Subdivision 1. [AGE LIMITATIONS; PUPILS.] All schools 6.6 supported in whole or in part by state funds are public schools. 6.7 Admission to a public school is free to any person who resides 6.8 within the districtwhichthat operates the school, who is under 6.9 21 years of age, and who satisfies the minimum age requirements 6.10 imposed by this section. Notwithstanding the provisions of any 6.11 law to the contrary, the conduct of all students under 21 years 6.12 of age attending a public secondary schoolshall beis governed 6.13 by a single set of reasonable rules and regulations promulgated 6.14 by the school board. No person shall be admitted to any public 6.15 school (1) as a kindergarten pupil, unless the pupil is at least 6.16 five years of age on September 1 of the calendar year in which 6.17 the school year for which the pupil seeks admission commences; 6.18 or (2) as a 1st grade student, unless the pupil is at least six 6.19 years of age on September 1 of the calendar year in which the 6.20 school year for which the pupil seeks admission commences or has 6.21 completed kindergarten; except that any school board may 6.22 establish a policy for admission of selected pupils at an 6.23 earlier age. 6.24 Sec. 8. Minnesota Statutes 1996, section 120.06, 6.25 subdivision 2a, is amended to read: 6.26 Subd. 2a. [EDUCATION OF HOMELESS.] Notwithstanding 6.27 subdivision 1, aschooldistrict must not deny free admission to 6.28 a homeless person of school age solely because theschool6.29 district cannot determine that the person is a resident of 6.30 theschooldistrict. 6.31 Sec. 9. Minnesota Statutes 1997 Supplement, section 6.32 120.062, subdivision 3, is amended to read: 6.33 Subd. 3. [LIMITED ENROLLMENT OF NONRESIDENT PUPILS.] (a) A 6.34schoolboard may, by resolution, limit the enrollment of 6.35 nonresident pupils in its schools or programs according to this 6.36 section to a number not less than the lesser of: 7.1 (1) one percent of the total enrollment at each grade level 7.2 in the district; or 7.3 (2) the number of district residents at that grade level 7.4 enrolled in a nonresident district according to this section. 7.5 (b) A district that limits enrollment of nonresident pupils 7.6 under paragraph (a) shall report to the commissioner by July 15 7.7 on the number of nonresident pupils denied admission due to the 7.8 limitations on the enrollment of nonresident pupils. 7.9 Sec. 10. Minnesota Statutes 1996, section 120.062, 7.10 subdivision 4, is amended to read: 7.11 Subd. 4. [PUPIL APPLICATION PROCEDURES.] In order that a 7.12 pupil may attend a school or program in a nonresident district, 7.13 the pupil's parent or guardian must submit an application to the 7.14 nonresident district. Before submitting an application, the 7.15 pupil and the pupil's parent or guardian must explore with a 7.16 school guidance counselor, or other appropriate staff member 7.17 employed by the district the pupil is currently attending, the 7.18 pupil's academic or other reason for applying to enroll in a 7.19 nonresident district. The pupil's application must identify the 7.20 reason for enrolling in the nonresident district. The parent or 7.21 guardian of a pupil must submit an application by January 15 for 7.22 initial enrollment beginning the following school year. The 7.23 applicationshallmust be on a form provided by the department 7.24 of children, families, and learning. A particular school or 7.25 program may be requested by the parent. Once enrolled in a 7.26 nonresident district, the pupil may remain enrolled and is not 7.27 required to submit annual or periodic applications. To return 7.28 to the resident district or to transfer to a different 7.29 nonresident district, the parent or guardian of the pupil must 7.30 provide notice to the resident district or apply to a different 7.31 nonresident district by January 15 for enrollment beginning the 7.32 following school year. 7.33 Sec. 11. Minnesota Statutes 1996, section 120.062, 7.34 subdivision 5, is amended to read: 7.35 Subd. 5. [DESEGREGATION DISTRICT TRANSFERS.] (a) This 7.36 subdivision applies to a transfer into or out of a district that 8.1 has a desegregation plan approved by the commissioner of 8.2 children, families, and learning. 8.3 (b) An application to transfer may be submitted at any time 8.4 for enrollment beginning at any time. 8.5 (c) The parent or guardian of a pupil who is a resident of 8.6 a district that has a desegregation plan must submit an 8.7 application to the resident district. If the district accepts 8.8 the application, it must forward the application to the 8.9 nonresident district. 8.10 (d) The parent or guardian of a pupil who applies for 8.11 enrollment in a nonresident district that has a desegregation 8.12 plan must submit an application to the nonresident district. 8.13 (e) Each district must accept or reject an application it 8.14 receives and notify the parent or guardian in writing within 30 8.15 calendar days of receiving the application. A notification of 8.16 acceptance must include the date enrollment can begin. 8.17 (f) If an application is rejected, the district must state 8.18 the reason for rejection in the notification. If a district 8.19 that has a desegregation plan rejects an application for a 8.20 reason related to the desegregation plan, the district must 8.21 state with specificity how acceptance of the application would 8.22 result in noncompliance with state board rules with respect to 8.23 the school or program for which application was made. 8.24 (g) If an application is accepted, the parent or guardian 8.25 must notify the nonresident district in writing within 15 8.26 calendar days of receiving the acceptance whether the pupil 8.27 intends to enroll in the nonresident district. Notice of 8.28 intention to enroll obligates the pupil to enroll in the 8.29 nonresident district, unless theschoolboards of the resident 8.30 and nonresident districts agree otherwise. If a parent or 8.31 guardian does not notify the nonresident district, the pupil may 8.32 not enroll in that nonresident district at that time, unless the 8.33schoolboards of the resident and nonresident district agree 8.34 otherwise. 8.35 (h) Within 15 calendar days of receiving the notice from 8.36 the parent or guardian, the nonresident district shall notify 9.1 the resident district in writing of the pupil's intention to 9.2 enroll in the nonresident district. 9.3 (i) A pupil enrolled in a nonresident district under this 9.4 subdivision is not required to make annual or periodic 9.5 application for enrollment but may remain enrolled in the same 9.6 district. A pupil may transfer to the resident district at any 9.7 time. 9.8 (j) A pupil enrolled in a nonresident district and applying 9.9 to transfer into or out of a district that has a desegregation 9.10 plan must follow the procedures of this subdivision. For the 9.11 purposes of this type of transfer, "resident district" means the 9.12 nonresident district in which the pupil is enrolled at the time 9.13 of application. 9.14 (k) A district that has a desegregation plan approved by 9.15 the state boardof educationmust accept or reject each 9.16 individual application in a manner that will enable compliance 9.17 with its desegregation plan. 9.18 Sec. 12. Minnesota Statutes 1997 Supplement, section 9.19 120.062, subdivision 6, is amended to read: 9.20 Subd. 6. [NONRESIDENT DISTRICT PROCEDURES.] A district 9.21 shall notify the parent or guardian in writing by February 15 9.22 whether the application has been accepted or rejected. If an 9.23 application is rejected, the district must state in the 9.24 notification the reason for rejection. The parent or guardian 9.25shallmust notify the nonresident district by March 1 whether 9.26 the pupil intends to enroll in the nonresident district. Notice 9.27 of intent to enroll in the nonresident district obligates the 9.28 pupil to attend the nonresident district during the following 9.29 school year, unless theschoolboards of the resident and the 9.30 nonresident districts agree in writing to allow the pupil to 9.31 transfer back to the resident district, or the pupil's parents 9.32 or guardians change residence to another district. If a parent 9.33 or guardian does not notify the nonresident district, the pupil 9.34 may not enroll in that nonresident district during the following 9.35 school year, unless theschoolboards of the resident and 9.36 nonresident district agree otherwise. The nonresident district 10.1shallmust notify the resident district by March 15 of the 10.2 pupil's intent to enroll in the nonresident district. The same 10.3 procedures apply to a pupil who applies to transfer from one 10.4 participating nonresident district to another participating 10.5 nonresident district. 10.6 Sec. 13. Minnesota Statutes 1997 Supplement, section 10.7 120.062, subdivision 7, is amended to read: 10.8 Subd. 7. [BASIS FOR DECISIONS.] Theschoolboard must 10.9 adopt, by resolution, specific standards for acceptance and 10.10 rejection of applications. Standards may include the capacity 10.11 of a program, class, or school building. The school board may 10.12 not reject applications for enrollment in a particular grade 10.13 level if the nonresident enrollment at that grade level does not 10.14 exceed the limit set by the board under subdivision 3. 10.15 Standards may not include previous academic achievement, 10.16 athletic or other extracurricular ability, disabling conditions, 10.17 proficiency in the English language, previous disciplinary 10.18 proceedings, or the student's district of residence. 10.19 Sec. 14. Minnesota Statutes 1996, section 120.062, 10.20 subdivision 8a, is amended to read: 10.21 Subd. 8a. [EXCEPTIONS TO DEADLINES.] Notwithstanding 10.22 subdivision 4, the following pupil application procedures apply: 10.23 (a) Upon agreement of the resident and nonresidentschool10.24 districts, a pupil may submit an application to a nonresident 10.25 district after January 15 for enrollment beginning the following 10.26 school year. 10.27 (b) If, as a result of entering into, modifying, or 10.28 terminating an agreement betweenschoolboards, a pupil is 10.29 assigned after December 1 to a different school for enrollment 10.30 beginning at any time, the pupil, the pupil's siblings, or any 10.31 other pupil residing in the pupil's residence may submit an 10.32 application to a nonresident district at any time before July 1 10.33 for enrollment beginning the following school year. 10.34 (c) A pupil who becomes a resident of aschooldistrict 10.35 after December 1 may submit an application to a nonresident 10.36 district on January 15 or any time after that date for 11.1 enrollment beginning any time before the following December 1. 11.2 (d) If the commissioner of children, families, and learning 11.3 and the commissioner of human rights determine that the 11.4 policies, procedures, or practices of aschooldistrict are in 11.5 violation of Title VI of the Civil Rights Act of 1964 (Public 11.6 Law Number 88-352) or chapter 363, any pupil in the district may 11.7 submit an application to a nonresident district at any time for 11.8 enrollment beginning at any time. 11.9 For exceptions under this subdivision, the applicant, the 11.10 applicant's parent or guardian, the district of residence, and 11.11 the district of attendance must observe, in a prompt and 11.12 efficient manner, the application and notice procedures in 11.13 subdivisions 4 and 6, except that the application and notice 11.14 deadlines do not apply. 11.15 Sec. 15. Minnesota Statutes 1996, section 120.0621, as 11.16 amended by Laws 1997, First Special Session chapter 4, article 11.17 4, sections 1, 2, and 3, is amended to read: 11.18 120.0621 [ENROLLMENT OPTIONS PROGRAMS IN BORDER STATES.] 11.19 Subdivision 1. [OPTIONS FOR ENROLLMENT IN ADJOINING 11.20 STATES.] Minnesota pupils and pupils residing in adjoining 11.21 states may enroll inschooldistricts in the other state 11.22 according to: 11.23 (1) section 120.08, subdivision 2; or 11.24 (2) this section. 11.25 Subd. 2. [PUPILS IN MINNESOTA.] A Minnesota resident pupil 11.26 may enroll in aschooldistrict in an adjoining state if the 11.27 district to be attended borders Minnesota. 11.28 Subd. 3. [PUPILS IN BORDERING STATES.] A non-Minnesota 11.29 pupil who resides in an adjoining state in aschooldistrict 11.30 that borders Minnesota may enroll in a Minnesotaschooldistrict 11.31 if either theschoolboard of the district in which the pupil 11.32 resides or state in which the pupil resides pays tuition to the 11.33schooldistrict in which the pupil is enrolled. 11.34 Subd. 3a. [CANADIAN PUPILS.] A pupil who resides in Canada 11.35 may enroll in a Minnesotaschooldistrict if the province in 11.36 which the pupil resides pays tuition to theschooldistrict in 12.1 which the pupil is enrolled. A pupil may enroll either full 12.2 time or part time for all instructional programs and shall be 12.3 considered eligible for all other purposes for all other 12.4 programs offered by the district. The tuition must be an amount 12.5 that is at least comparable to the tuition specified in section 12.6 120.08, subdivision 1. Aschooldistrict may accept funds from 12.7 any international agency for these programs. 12.8 Subd. 4. [PROCEDURAL REQUIREMENTS.] Except as otherwise 12.9 provided in this section, the rights and duties set forth in 12.10 section 120.062 apply to Minnesota pupils, parents, andschool12.11 districts if a pupil enrolls in a nonresident district according 12.12 to this section. 12.13 Subd. 5a. [TUITION PAYMENTS.] In each odd-numbered year, 12.14 before March 1, the commissionershallmust agree to rates of 12.15 tuition for Minnesota elementary and secondary pupils attending 12.16 in other states for the next two fiscal years when the other 12.17 state agrees to negotiate tuition rates. The commissionershall12.18 must negotiate equal, reciprocal rates with the designated 12.19 authority in each state for pupils who reside in an adjoining 12.20 state and enroll in a Minnesotaschooldistrict. The rates must 12.21 be at least equal to the tuition specified in section 120.08, 12.22 subdivision 1. If the other state does not agree to negotiate a 12.23 general tuition rate, a Minnesota school district may negotiate 12.24 a tuition rate with the school district in the other state that 12.25 sends a pupil to or receives a pupil from the Minnesota school 12.26 district. The tuition rate for a pupil with a disability must 12.27 be equal to the actual cost of instruction and services 12.28 provided. The resident district of a Minnesota pupil attending 12.29 in another state under this section must pay the amount of 12.30 tuition agreed upon in this section to the district of 12.31 attendance, prorated on the basis of the proportion of the 12.32 school year attended. 12.33 Subd. 5b. [TRANSPORTATION OF STUDENTS.] (a) The agreement 12.34 under subdivision 5a with each state must specify that the 12.35 attending district in each state transport a pupil from the 12.36 district boundary to the school of attendance. 13.1 (b) Notwithstanding paragraph (a), the districts of 13.2 residence and attendance may agree that either district may 13.3 provide transportation from a pupil's home or agreed upon 13.4 location to school. Transportation aid for Minnesota students 13.5 eligible for aidshallmust be paid only for transportation 13.6 within the resident district. 13.7 Subd. 6. [EFFECTIVE IF RECIPROCAL.] This section is 13.8 effective with respect to South Dakota upon enactment of 13.9 provisions by South Dakota that the commissioner determines are 13.10 essentially similar to the provisions for Minnesota pupils in 13.11 this section.After July 1, 1993,This section is effective 13.12 with respect to any other bordering state upon enactment of 13.13 provisions by the bordering state that the commissioner 13.14 determines are essentially similar to the provisions for 13.15 Minnesota pupils in this section. 13.16 Subd. 7. [APPEAL TO THE COMMISSIONER.] If a Minnesota 13.17 school district cannot agree with an adjoining state on a 13.18 tuition rate for a Minnesota student attending school in that 13.19 state and that state has met the requirements in subdivision 6, 13.20 then the student's parent or guardian may request that the 13.21 commissioner agree on a tuition rate for the student. The 13.22 Minnesotaschooldistrict must pay the amount of tuition the 13.23 commissioner agrees upon. 13.24 Sec. 16. Minnesota Statutes 1996, section 120.075, 13.25 subdivision 1, is amended to read: 13.26 Subdivision 1. [PREVIOUS ENROLLMENT.] Any pupil who, 13.27 pursuant to the provisions of Minnesota Statutes 1976, section 13.28 120.065, or Minnesota Statutes, 1977 Supplement, section 123.39, 13.29 subdivision 5a, was enrolled on either January 1, 1978, or April 13.30 5, 1978, in aschooldistrict of which the pupil was not a 13.31 resident may continue in enrollment in that district. 13.32 Sec. 17. Minnesota Statutes 1996, section 120.075, 13.33 subdivision 2, is amended to read: 13.34 Subd. 2. [UNDER SCHOOL AGE.] Any child who was under 13.35 school age on either January 1, 1978, or April 5, 1978, but who 13.36 otherwise would have qualified pursuant to the provisions of 14.1 Minnesota Statutes 1976, section 120.065, or Minnesota Statutes, 14.2 1977 Supplement, section 123.39, subdivision 5a, for enrollment 14.3 in aschooldistrict of which the child was not a resident may 14.4 enroll in that district. 14.5 Sec. 18. Minnesota Statutes 1996, section 120.075, 14.6 subdivision 3a, is amended to read: 14.7 Subd. 3a. [ADOPTED CHILD.] Any child who was born on or 14.8 before January 1, 1978 but who was adopted after January 1, 1978 14.9 and whose adoptive parent on January 1, 1978 owned property 14.10 residence upon which would have qualified the child for 14.11 enrollment pursuant to Minnesota Statutes 1976, section 120.065, 14.12 in aschooldistrict of which the child was not a resident may 14.13 enroll in that district. Any child who was born on or before 14.14 January 1, 1978 but who was adopted after January 1, 1978 and 14.15 whose adoptive parent on January 1, 1978 owned or was a tenant 14.16 upon property so as to qualify a child for enrollment pursuant 14.17 to Minnesota Statutes, 1977 Supplement, section 123.39, 14.18 subdivision 5a, in aschooldistrict of which the child was not 14.19 a resident may enroll in that district. 14.20 Sec. 19. Minnesota Statutes 1996, section 120.075, 14.21 subdivision 4, is amended to read: 14.22 Subd. 4. [SIBLING OF QUALIFIED PUPIL.] Subdivisions 1, 1a, 14.23 2, 3 and 3a shall also apply to any brother or sister of a 14.24 qualified pupil who is related to that pupil by blood, adoption, 14.25 or marriage and to any foster child of that pupil's parents. 14.26 The enrollment of any pupil pursuant to subdivision 1, 2, 3 or 14.27 3a and of a brother or sister of that pupil or of a foster child 14.28 of that pupil's parents pursuant to this subdivisionshallmust 14.29 remain subject to the provisions of Minnesota Statutes 1976, 14.30 section 120.065 and Minnesota Statutes, 1977 Supplement, section 14.31 123.39, subdivision 5a, as they read on January 1, 1978. 14.32 Sec. 20. Minnesota Statutes 1996, section 120.0751, 14.33 subdivision 1, is amended to read: 14.34 Subdivision 1. [COMMISSIONER MAY PERMIT ENROLLMENT.] The 14.35 commissioner may permit a pupil to enroll in aschooldistrict 14.36 of which the pupil is not a resident under this section. 15.1 Sec. 21. Minnesota Statutes 1996, section 120.0751, 15.2 subdivision 2, is amended to read: 15.3 Subd. 2. [APPLICATION TO THE COMMISSIONER.] The pupil or 15.4 the pupil's parent or guardianshallmust make application to 15.5 the commissioner, explaining the particular circumstanceswhich15.6 that make the nonresident district the appropriate district of 15.7 attendance for the pupil. The application must be signed by the 15.8 pupil's parent or guardian and the superintendent of the 15.9 nonresident district. 15.10 Sec. 22. Minnesota Statutes 1996, section 120.0751, 15.11 subdivision 3, is amended to read: 15.12 Subd. 3. [CRITERIA FOR APPROVAL.] In approving or 15.13 disapproving the application the commissionershallmust 15.14 consider the following: 15.15(a)(1) if the circumstances of the pupil are similar or 15.16 analogous to the exceptions permitted by section 120.075, 15.17 whether attending school in the district of residence creates a 15.18 particular hardship for the pupil; or 15.19(b)(2) if the pupil has been continuously enrolled for at 15.20 least two years in a district of which the pupil was not a 15.21 resident because of an error made in good faith about the actual 15.22 district of residence, whether attending school in the district 15.23 of residence creates a particular hardship for the pupil. If 15.24 the commissioner finds that a good faith error was made and that 15.25 attending school in the district of residence would create a 15.26 particular hardship for the siblings of that pupil or foster 15.27 children of that pupil's parents, the commissioner may 15.28 separately approve an application for any or all of the siblings 15.29 of the pupil who are related by blood, adoption, or marriage and 15.30 for foster children of the pupil's parents. 15.31 Sec. 23. Minnesota Statutes 1996, section 120.0751, 15.32 subdivision 4, is amended to read: 15.33 Subd. 4. [DECISION DEADLINE.] The commissionershallmust 15.34 render its decision in each case within 60 days of receiving the 15.35 application in subdivision 2. 15.36 Sec. 24. Minnesota Statutes 1996, section 120.0751, 16.1 subdivision 5, is amended to read: 16.2 Subd. 5. [FORMS.] The commissionershallmust provide the 16.3 forms required by subdivision 2 andshallmust adopt the 16.4 procedures necessary to implement this section. 16.5 Sec. 25. Minnesota Statutes 1996, section 120.0752, 16.6 subdivision 1, is amended to read: 16.7 Subdivision 1. [ENROLLMENT EXCEPTION.] A pupil may enroll 16.8 in aschooldistrict of which the pupil is not a resident under 16.9 this section. 16.10 Sec. 26. Minnesota Statutes 1996, section 120.0752, 16.11 subdivision 2, is amended to read: 16.12 Subd. 2. [BOARD APPROVAL.] The pupil's parent or guardian 16.13 must receive the approval of theschoolboard of the nonresident 16.14 district and theschoolboard of the resident district. The 16.15 nonresidentschoolboard shall notify the residentschoolboard 16.16 of the approval. 16.17 Sec. 27. Minnesota Statutes 1996, section 120.0752, 16.18 subdivision 3, is amended to read: 16.19 Subd. 3. [11TH AND 12TH GRADE STUDENTS.] Notwithstanding 16.20 subdivision 2, an 11th or 12th grade pupil who has been enrolled 16.21 in a district and whose parent or guardian moves to another 16.22 district, may continue to enroll in the nonresident district 16.23 upon the approval of theschoolboard of the nonresident 16.24 district. The approval of theschoolboard of the pupil's 16.25 resident district is not required. 16.26 Sec. 28. Minnesota Statutes 1996, section 120.08, is 16.27 amended to read: 16.28 120.08 [ATTENDANCE; SCHOOL IN ANOTHER STATE; SEVERANCE 16.29 PAY.] 16.30 Subdivision 1. [ATTENDANCE IN ANOTHER STATE.] Any person 16.31 under 21 years of age residing in any district not maintaining a 16.32 secondary school who has successfully completed the elementary 16.33 school may, with the consent of the board of such district, 16.34 attend any secondary school of a district in an adjoining state 16.35 willing to admit the person,whichif the secondary school is 16.36 nearer to the place of residence than anydulyestablished 17.1 secondary school in Minnesota, the distances being measured by 17.2 the usual traveled routes. Any tuition charged by the district 17.3 so attendedshallmust be paid to the district attended by the 17.4 district in which the person resides. This tuitionshallmust 17.5 not be more than (a)suchthe district charges nonresident 17.6 pupils of that state, (b) the average maintenance cost exclusive 17.7 of transportation per pupil unit in average daily membership in 17.8 the school attended, nor (c) the tuition rate provided for in 17.9 section 124.18, subdivision 2. 17.10 Any pupil attending a secondary school in an adjoining 17.11 state for whom tuition is paid from district funds is entitled 17.12 to transportation services in accordance with Minnesota Statutes. 17.13 Subd. 2. [TUITION.] Aschoolboard of a district 17.14 maintaining a secondary school may by a majority vote provide 17.15 for the instruction of any resident pupil attending an 17.16 elementary school, a middle school, or a secondary school in 17.17 aschooldistrict in an adjoining state. Any charge for tuition 17.18 or transportation,by the district in the adjoining state, shall17.19 must be paid by the resident district. The pupilshallmust be 17.20 considered a pupil of the resident district for the purposes of 17.21 state aid. 17.22 Subd. 3. [SEVERANCE PAY.] A districtshallmust pay 17.23 severance pay to a teacher who is placed on unrequested leave of 17.24 absence by the district as a result of an agreement under this 17.25 section. A teacher is eligible under this subdivision if the 17.26 teacher: 17.27 (1) is a teacher, as defined in section 125.12, subdivision 17.28 1, but not a superintendent; 17.29 (2) has a continuing contract with the district according 17.30 to section 125.12, subdivision 4. 17.31 The amount of severance payshallmust be equal to the 17.32 teacher's salary for the school year during which the teacher 17.33 was placed on unrequested leave of absence minus the gross 17.34 amount the teacher was paid during the 12 months following the 17.35 teacher's termination of salary, by an entity whose teachers by 17.36 statute or rule must possess a valid Minnesota teaching license, 18.1 and minus the amount a teacher receives as severance or other 18.2 similar pay according to a contract with the district or 18.3 district policy. These entities include, but are not limited 18.4 to, theschooldistrict that placed the teacher on unrequested 18.5 leave of absence, anotherschooldistrict in Minnesota, an 18.6 education district, an intermediate school district, a SC, a 18.7 board formed under section 471.59, a state residential academy, 18.8 the Lola and Rudy Perpich Minnesota center for arts education, a 18.9 vocational center, or a special education cooperative. These 18.10 entities do not include aschooldistrict in another state, a 18.11 Minnesota public post-secondary institution, or a state agency. 18.12 Only amounts earned by the teacher as a substitute teacher or in 18.13 a position requiring a valid Minnesota teaching license shall be 18.14 subtracted. A teacher may decline any offer of employment as a 18.15 teacher without loss of rights to severance pay. 18.16 To determine the amount of severance pay that is due for 18.17 the first six months following termination of the teacher's 18.18 salary, the district may require the teacher to provide 18.19 documented evidence of the teacher's employers and gross 18.20 earnings during that period. The districtshallmust pay the 18.21 teacher the amount of severance pay it determines to be due from 18.22 the proceeds of the levy for this purpose. To determine the 18.23 amount of severance pay that is due for the second six months of 18.24 the 12 months following the termination of the teacher's salary, 18.25 the district may require the teacher to provide documented 18.26 evidence of the teacher's employers and gross earnings during 18.27 that period. The districtshallmust pay the teacher the amount 18.28 of severance pay it determines to be due from the proceeds of 18.29 the levy for this purpose. 18.30 A teacher who receives severance pay under this subdivision 18.31 waives all further reinstatement rights under section 125.12, 18.32 subdivision 6a or 6b. If the teacher receives severance pay, 18.33 the teachershallmust not receive credit for any years of 18.34 service in the district paying severance pay prior to the year 18.35 in which the teacher becomes eligible to receive severance pay. 18.36 The severance pay is subject to section 465.72. The 19.1 district may levy annually according to section 124.912, 19.2 subdivision 1, for the severance pay. 19.3 Sec. 29. Minnesota Statutes 1997 Supplement, section 19.4 120.101, subdivision 5, is amended to read: 19.5 Subd. 5. [AGES AND TERMS.] Every child between seven and 19.6 16 years of ageshallmust receive instruction. Every child 19.7 under the age of seven who is enrolled in a half-day 19.8 kindergarten, or a full-day kindergarten program on alternate 19.9 days, or other kindergarten programs shall receive instruction. 19.10 Except as provided in subdivision 5a, a parent may withdraw a 19.11 child under the age of seven from enrollment at any time. 19.12 Sec. 30. Minnesota Statutes 1996, section 120.101, 19.13 subdivision 5a, is amended to read: 19.14 Subd. 5a. [CHILDREN UNDER SEVEN.] Once a pupil under the 19.15 age of seven is enrolled in kindergarten or a higher grade in a 19.16 public school, the pupil is subject to the compulsory attendance 19.17 provisions of this chapter and section 127.20, unless theschool19.18 board of the district in which the pupil is enrolled has a 19.19 policy that exempts children under seven from this subdivision. 19.20 In aschooldistrict in which children under seven are 19.21 subject to compulsory attendance under this subdivision, 19.22 paragraphs (a) to (c) apply. 19.23 (a) A parent or guardian may withdraw the pupil from 19.24 enrollment in the school for good cause by notifying theschool19.25 district. Good cause includes, but is not limited to, 19.26 enrollment of the pupil in another school, as defined in 19.27 subdivision 4, or the immaturity of the child. 19.28 (b) When the pupil enrolls, the enrolling official must 19.29 provide the parent or guardian who enrolls the pupil with a 19.30 written explanation of the provisions of this subdivision. 19.31 (c) A pupil under the age of seven who is withdrawn from 19.32 enrollment in the public school under paragraph (a) is no longer 19.33 subject to the compulsory attendance provisions of this chapter. 19.34 In aschooldistrict that had adopted a policy to exempt 19.35 children under seven from this subdivision, theschool19.36 district's chief attendance officer must keep the truancy 20.1 enforcement authorities supplied with a copy of theschool20.2 board's current policy certified by the clerk of theschool20.3 board. 20.4 Sec. 31. Minnesota Statutes 1997 Supplement, section 20.5 120.101, subdivision 5c, is amended to read: 20.6 Subd. 5c. [EDUCATION RECORDS.] (a) Aschooldistrict from 20.7 which a student is transferring must transmit the student's 20.8 educational records, within ten business days of a request, to 20.9 theschooldistrict in which the student is enrolling.School20.10 districts must make reasonable efforts to determine theschool20.11 district in which a transferring student is next enrolling in 20.12 order to comply with this subdivision. 20.13 (b) A school district that transmits a student's 20.14 educational records to another school district or other 20.15 educational entity to which the student is transferring must 20.16 include in the transmitted records information about 20.17 disciplinary action taken as a result of any incident in which 20.18 the student possessed or used a dangerous weapon. 20.19 Sec. 32. Minnesota Statutes 1996, section 120.101, 20.20 subdivision 7, is amended to read: 20.21 Subd. 7. [REQUIREMENTS FOR INSTRUCTORS.] A person who is 20.22 providing instruction to a child must meet at least one of the 20.23 following requirements: 20.24 (1) hold a valid Minnesota teaching license in the field 20.25 and for the grade level taught; 20.26 (2) be directly supervised by a person holding a valid 20.27 Minnesota teaching license; 20.28 (3) successfully complete a teacher competency examination; 20.29 (4) provide instruction in a school that is accredited by 20.30 an accrediting agency, recognized according to section 123.935, 20.31 subdivision 7, or recognized by the state boardof education; 20.32 (5) hold a baccalaureate degree; or 20.33 (6) be the parent of a child who is assessed according to 20.34 the procedures in subdivision 8. 20.35 Any person providing instruction in a public school must 20.36 meet the requirements of clause (1). 21.1 Sec. 33. Minnesota Statutes 1996, section 120.101, 21.2 subdivision 8, is amended to read: 21.3 Subd. 8. [ASSESSMENT OF PERFORMANCE.] (a) Each year the 21.4 performance of every child who is not enrolled in a public 21.5 school must be assessed using a nationally norm-referenced 21.6 standardized achievement examination. The superintendent of the 21.7 district in which the child receives instruction and the person 21.8 in charge of the child's instruction must agree about the 21.9 specific examination to be used and the administration and 21.10 location of the examination. 21.11 (b) To the extent the examination in paragraph (a) does not 21.12 provide assessment in all of the subject areas in subdivision 6, 21.13 the parent must assess the child's performance in the applicable 21.14 subject area. This requirement applies only to a parent who 21.15 provides instruction and does not meet the requirements of 21.16 subdivision 7, clause (1), (2), or (3). 21.17 (c) If the results of the assessments in paragraphs (a) and 21.18 (b) indicate that the child's performance on the total battery 21.19 score is at or below the 30th percentile or one grade level 21.20 below the performance level for children of the same age, the 21.21 parentshallmust obtain additional evaluation of the child's 21.22 abilities and performance for the purpose of determining whether 21.23 the child has learning problems. 21.24 (d) A child receiving instruction from a nonpublic school, 21.25 person, or institution that is accredited by an accrediting 21.26 agency, recognized according to section 123.935, subdivision 7, 21.27 or recognized by the state boardof education, is exempt from 21.28 the requirements of this subdivision. 21.29 Sec. 34. Minnesota Statutes 1996, section 120.101, 21.30 subdivision 9, is amended to read: 21.31 Subd. 9. [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 21.32 other person having control of a child may apply to a school 21.33 district to have the child excused from attendance for the whole 21.34 or any part of the time school is in session during any school 21.35 year. Application may be made to any member of the board, a 21.36 truant officer, a principal, or the superintendent. Theschool22.1 board of the district in which the child resides may approve the 22.2 application upon the following being demonstrated to the 22.3 satisfaction of that board: 22.4 (1) That the child's bodily or mental condition is such as 22.5 to prevent attendance at school or application to study for the 22.6 period required; or 22.7 (2) That for the school years 1988-1989 through 1999-2000 22.8 the child has already completed the studies ordinarily required 22.9 in the 10th grade and that for the school years beginning with 22.10 the 2000-2001 school year the child has already completed the 22.11 studies ordinarily required to graduate from high school; or 22.12 (3) That it is the wish of the parent, guardian, or other 22.13 person having control of the child, that the child attend for a 22.14 period or periods not exceeding in the aggregate three hours in 22.15 any week, a school for religious instruction conducted and 22.16 maintained by some church, or association of churches, or any 22.17 Sunday school association incorporated under the laws of this 22.18 state, or any auxiliary thereof. This school for religious 22.19 instructionshallmust be conducted and maintained in a place 22.20 other than a public school building, andin no eventit must 22.21 not, in whole or in part,shallbe conducted and maintained at 22.22 public expense. However, a child may be absent from school on 22.23 such days as the child attends upon instruction according to the 22.24 ordinances of some church. 22.25 Sec. 35. Minnesota Statutes 1996, section 120.101, 22.26 subdivision 10, is amended to read: 22.27 Subd. 10. [ISSUING AND REPORTING EXCUSES.] The clerk or 22.28 any authorized officer of theschoolboardshallmust issue and 22.29 keep a record of such excuses, under such rules as the board may 22.30 from time to time establish. 22.31 Sec. 36. Minnesota Statutes 1997 Supplement, section 22.32 120.1015, is amended to read: 22.33 120.1015 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 22.34 A school board's annual school calendarshallmust include 22.35 at least three additional days of student instruction beyond the 22.36 number of days of student instruction the board formally adopted 23.1 as its school calendar at the beginning of the 1996-1997 school 23.2 year. 23.3 Sec. 37. Minnesota Statutes 1996, section 120.102, 23.4 subdivision 1, is amended to read: 23.5 Subdivision 1. [REPORTS TO SUPERINTENDENT.] The person in 23.6 charge of providing instruction to a childshallmust submit the 23.7 following information to the superintendent of the district in 23.8 which the child resides: 23.9 (1) by October 1 of each school year, the name, age, and 23.10 address of each child receiving instruction; 23.11 (2) the name of each instructor and evidence of compliance 23.12 with one of the requirements specified in section 120.101, 23.13 subdivision 7; 23.14 (3) an annual instructional calendarshowing that23.15instruction will occur on at least the number of days required23.16under section 120.101, subdivision 5b; and 23.17 (4) for each child instructed by a parent who meets only 23.18 the requirement of section 120.101, subdivision 7, clause (6), a 23.19 quarterly report card on the achievement of the child in each 23.20 subject area required in section 120.101, subdivision 6. 23.21 Sec. 38. Minnesota Statutes 1996, section 120.102, 23.22 subdivision 3, is amended to read: 23.23 Subd. 3. [EXEMPTIONS.] A nonpublic school, person, or 23.24 other institution that is accredited by an accrediting agency, 23.25 recognized according to section 123.935, or recognized by the 23.26 state boardof education, is exempt from the requirements in 23.27 subdivisions 1 and 2, except for the requirement in subdivision 23.28 1, clause (1). 23.29 Sec. 39. Minnesota Statutes 1996, section 120.102, 23.30 subdivision 4, is amended to read: 23.31 Subd. 4. [REPORTS TO THE STATE.] A superintendentshall23.32 must make an annual report to the commissioner of children, 23.33 families, and learning. The report must include the following 23.34 information: 23.35 (1) the number of children residing in the district 23.36 attending nonpublic schools or receiving instruction from 24.1 persons or institutions other than a public school; 24.2 (2) the number of children in clause (1) who are in 24.3 compliance with section 120.101 and this section; and 24.4 (3) the names, ages, and addresses of children whom the 24.5 superintendent has determined are not in compliance with section 24.6 120.101 and this section. 24.7 Sec. 40. Minnesota Statutes 1996, section 120.103, 24.8 subdivision 3, is amended to read: 24.9 Subd. 3. [NOTICE TO PARENTS.] The superintendentshall24.10 must notify the parent, in writing, if a child is alleged to be 24.11 receiving instruction in violation of sections 120.101 and 24.12 120.102. The written notificationshallmust include a list of 24.13 the specific alleged violations. 24.14 Sec. 41. Minnesota Statutes 1996, section 120.103, 24.15 subdivision 4, is amended to read: 24.16 Subd. 4. [FACT-FINDING AND MEDIATION.] If the specified 24.17 alleged violations of the compulsory attendance requirements are 24.18 not corrected within 15 days of receipt of the written 24.19 notification, the superintendentshallmust request fact-finding 24.20 and mediation services from the commissionerof children,24.21families, and learning. 24.22 Sec. 42. Minnesota Statutes 1996, section 120.103, 24.23 subdivision 5, is amended to read: 24.24 Subd. 5. [NOTICE TO COUNTY ATTORNEY.] If the alleged 24.25 violations are not corrected through the fact-finding and 24.26 mediation process under subdivision 4, the superintendentshall24.27 must notify the county attorney of the alleged violations. The 24.28 superintendentshallmust notify the parents, by certified mail, 24.29 of the superintendent's intent to notify the county attorney of 24.30 the alleged violations. 24.31 Sec. 43. Minnesota Statutes 1996, section 120.103, 24.32 subdivision 6, is amended to read: 24.33 Subd. 6. [CRIMINAL COMPLAINT; PROSECUTION.] The county 24.34 attorney in the county in which the alleged violations have 24.35 occurred has jurisdiction to conduct a prosecution for 24.36 violations of section 120.101, 120.102, or 120.103. A criminal 25.1 complaint may be filed in any court in the county exercising 25.2 criminal jurisdiction andshallmust name the persons neglecting 25.3 or refusing to comply with section 120.101, 120.102, or 120.103. 25.4 After the complaint has been filed, a warrantshallmust be 25.5 issued and proceedings in trialshallmust commence as provided 25.6 by law in misdemeanor cases. 25.7 Sec. 44. Minnesota Statutes 1996, section 120.11, is 25.8 amended to read: 25.9 120.11 [SCHOOL BOARDS AND TEACHERS, DUTIES.] 25.10 Itshall beis the duty of each board through its clerk or 25.11 other authorized agent or employee, to report the names of 25.12 children required to attend school, with excuses, if any, 25.13 granted insuchthe district, to the superintendent or 25.14 principalsthereofof the district, within the first week of 25.15 school. Subsequent excuses grantedshallmust beforthwith25.16 reported in the same manner. The clerk or principalshallmust 25.17 provide the teachers in the several schools supervised,with the 25.18 necessary information for the respective grades of school, 25.19 relating to the list of pupils with excuses granted.On receipt25.20of the list of such pupils of school age and the excuses granted25.21 Within five days after receiving the report, the clerk or 25.22 principalsshallmust report the names of children not excused,25.23 who are not attending school, with the names and addresses of 25.24 their parents, to thedistrictsuperintendentwithin five days25.25after receiving the report. 25.26 Sec. 45. Minnesota Statutes 1996, section 120.14, is 25.27 amended to read: 25.28 120.14 [ATTENDANCE OFFICERS.] 25.29 The board of any district may authorize the employment of 25.30 attendance officers, whoshallmust investigate truancy or 25.31 nonattendance at school, make complaints, serve notice and 25.32 process, and attend to the enforcement of all laws and district 25.33 rules regarding school attendance. When any attendance officer 25.34 learns of any case of habitual truancy or continued 25.35 nonattendance of any child required to attend school the officer 25.36shallmust immediately notify the person having control ofsuch26.1 the child toforthwithsendtoand keep the child in school. 26.2 The attendance officershallmust also refer a habitual truant 26.3 child as defined in section 260.015, subdivision 19, and the 26.4 child's parent or legal guardian to appropriate services and 26.5 procedures under chapter 260A, if available within the school 26.6 district. Attendance officers or other designated school 26.7 officialsshallmust ensure that the notice required by section 26.8 260A.03 for a child who is a continuing truant is sent. The 26.9 officershallmust act under the general supervision of 26.10 thedistrictsuperintendent. 26.11 Sec. 46. Minnesota Statutes 1996, section 120.73, 26.12 subdivision 1, is amended to read: 26.13 Subdivision 1. A school board is authorized to require 26.14 payment of fees in the following areas: 26.15 (a) in any program where the resultant product, in excess 26.16 of minimum requirements and at the pupil's option, becomes the 26.17 personal property of the pupil; 26.18 (b) admission fees or charges for extra curricular 26.19 activities, where attendance is optional; 26.20 (c) a security deposit for the return of materials, 26.21 supplies, or equipment; 26.22 (d) personal physical education and athletic equipment and 26.23 apparel, although any pupil may personally provide it if it 26.24 meets reasonable requirements and standards relating to health 26.25 and safety established by theschoolboard; 26.26 (e) items of personal use or productswhichthat a student 26.27 has an option to purchase such as student publications, class 26.28 rings, annuals, and graduation announcements; 26.29 (f) fees specifically permitted by any other statute, 26.30 including but not limited to section 171.04, subdivision 1, 26.31 clause (1); 26.32 (g) field trips considered supplementary to a district 26.33 educational program; 26.34 (h) any authorized voluntary student health and accident 26.35 benefit plan; 26.36 (i) for the use of musical instruments owned or rented by 27.1 the district, a reasonable rental fee not to exceed either the 27.2 rental cost to the district or the annual depreciation plus the 27.3 actual annual maintenance cost for each instrument; 27.4 (j) transportation of pupils to and from extra curricular 27.5 activities conducted at locations other than school, where 27.6 attendance is optional; 27.7 (k) transportation of pupils to and from school for which 27.8 aid for fiscal year 1996 is not authorized under Minnesota 27.9 Statutes 1994, section 124.223, subdivision 1, and for which 27.10 levy for fiscal year 1996 is not authorized under Minnesota 27.11 Statutes 1994, section 124.226, subdivision 5, if a district 27.12 charging fees for transportation of pupils establishes 27.13 guidelines for that transportation to ensure that no pupil is 27.14 denied transportation solely because of inability to pay; 27.15 (l) motorcycle classroom education courses conducted 27.16 outside of regular school hours; provided the chargeshallmust 27.17 not exceed the actual cost of these courses to the school 27.18 district; 27.19 (m) transportation to and from post-secondary institutions 27.20 for pupils enrolled under the post-secondary enrollment options 27.21 program under section 123.39, subdivision 16. Fees collected 27.22 for this service must be reasonable andshallmust be used to 27.23 reduce the cost of operating the route. Families who qualify 27.24 for mileage reimbursement under section 123.3514, subdivision 8, 27.25 may use their state mileage reimbursement to pay this fee. If 27.26 no fee is charged, districtsshallmust allocate costs based on 27.27 the number of pupils riding the route. 27.28 Sec. 47. Minnesota Statutes 1996, section 120.73, 27.29 subdivision 2a, is amended to read: 27.30 Subd. 2a. Students may be required to furnish their own 27.31 transportation to and from an instructional community-based 27.32 employment stationwhichthat is part of an approved 27.33 occupational experience secondary vocational program. As an 27.34 alternative, aschoolboard may require the payment of 27.35 reasonable fees for transportation to and from these 27.36 instructional community-based employment stations. This 28.1 subdivisionshallonlybe appliedapplies to students who 28.2 receive remuneration for their participation in these programs. 28.3 Sec. 48. Minnesota Statutes 1996, section 120.73, 28.4 subdivision 2b, is amended to read: 28.5 Subd. 2b. [SCHOOL UNIFORMS.] Notwithstanding section 28.6 120.74, aschoolboard may require students to furnish or 28.7 purchase clothing that constitutes a school uniform if the board 28.8 has adopted a uniform requirement or program for the student's 28.9 school. In adopting a uniform requirement, the board shall 28.10 promote student, staff, parent, and community involvement in the 28.11 program and account for the financial ability of students to 28.12 purchase uniforms. 28.13 Sec. 49. Minnesota Statutes 1996, section 120.73, 28.14 subdivision 3, is amended to read: 28.15 Subd. 3. Sections 120.71 to 120.76shallmay not preclude 28.16 the operation of a school storewhereinwhere pupils may 28.17 purchase school supplies and materials. 28.18 Sec. 50. Minnesota Statutes 1996, section 120.73, 28.19 subdivision 4, is amended to read: 28.20 Subd. 4. Aschoolboard may waive anysuchdeposit or fee 28.21 if any pupil or the pupil's parent or guardian is unable to pay 28.22 it. 28.23 Sec. 51. Minnesota Statutes 1996, section 120.74, is 28.24 amended to read: 28.25 120.74 [PROHIBITED FEES.] 28.26 Subdivision 1. (a) Aschoolboard is not authorized to 28.27 charge fees in the following areas: 28.28 (1) textbooks, workbooks, art materials, laboratory 28.29 supplies, towels; 28.30 (2) supplies necessary for participation in any 28.31 instructional course except as authorized in sections 120.73 and 28.32 120.75; 28.33 (3) field tripswhichthat are required as a part of a 28.34 basic education program or course; 28.35 (4) graduation caps, gowns, any specific form of dress 28.36 necessary for any educational program, and diplomas; 29.1 (5) instructional costs for necessary school personnel 29.2 employed in any course or educational program required for 29.3 graduation; 29.4 (6) library books required to be utilized for any 29.5 educational course or program; 29.6 (7) admission fees, dues, or fees for any activity the 29.7 pupil is required to attend; 29.8 (8) any admission or examination cost for any required 29.9 educational course or program; 29.10 (9) locker rentals; 29.11 (10) transportation of pupils (i) for which state 29.12 transportation aid for fiscal year 1996 is authorized pursuant 29.13 to Minnesota Statutes 1994, section 124.223, or (ii) for which a 29.14 levy for fiscal year 1996 is authorized under Minnesota Statutes 29.15 1994, section 124.226, subdivision 5. 29.16 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 29.17schoolboard may charge fees for textbooks, workbooks, and 29.18 library books, lost or destroyed by students. The board must 29.19 annually notify parents or guardians and students about its 29.20 policy to charge a fee under this paragraph. 29.21 Subd. 2. No pupil's rights or privileges, including the 29.22 receipt of grades or diplomas may be denied or abridged for 29.23 nonpayment of fees; but this provisionshalldoes not prohibit a 29.24schooldistrict from maintaining any action provided by law for 29.25 the collection ofsuchfees authorized by sections 120.73 and 29.26 120.75. 29.27 Sec. 52. Minnesota Statutes 1996, section 120.75, is 29.28 amended to read: 29.29 120.75 [HEARING.] 29.30 Subdivision 1. [PUBLIC HEARING.]Prior toBefore the 29.31 initiation of any fee not authorized or prohibited by sections 29.32 120.73 and 120.74, the localschoolboardshallmust hold a 29.33 public hearing within the district upon three weeks published 29.34 notice in the district's official newspaper, or such notice as 29.35 is otherwise required for a regularschoolboard meeting given 29.36 three weeksprior tobefore the hearing on the proposed adoption 30.1 of the policy. 30.2 Sec. 53. Minnesota Statutes 1996, section 120.76, is 30.3 amended to read: 30.4 120.76 [POST-SECONDARY INSTRUCTIONAL PROGRAMS.] 30.5 Sections 120.71 to 120.76shallmay not be construed to 30.6 prohibit aschoolboard from charging reasonable fees for goods 30.7 and services provided in connection with any post-secondary 30.8 instructional program, including but not limited to vocational 30.9 technical, veteran farmer cooperative training, and community 30.10 education programs, and continuing education and evening school 30.11 programs other than those conducted pursuant to section 124.26. 30.12 Sec. 54. Minnesota Statutes 1996, section 123.35, 30.13 subdivision 8a, is amended to read: 30.14 Subd. 8a. [SECONDARY SCHOOL PROGRAMS.] The board may 30.15 permit a person who is over the age of 21 or who has graduated 30.16 from high school to enroll as a part-time student in a class or 30.17 program at a secondary school if there is space available. In 30.18 determining if there is space available, full-time public school 30.19 students, shared-time students, and students returning to 30.20 complete a regular course of study shall be given priority over 30.21 part-time students seeking enrollment pursuant to this 30.22 subdivision. The following are not prerequisites for enrollment: 30.23(a)(1) residency in the school district; 30.24(b)(2) United States citizenship; or 30.25(c)(3) for a person over the age of 21, a high school 30.26 diploma or equivalency certificate. A person may enroll in a 30.27 class or program even if that person attends evening school, an 30.28 adult or continuing education, or a post-secondary educational 30.29 program or institution. 30.30 Sec. 55. Minnesota Statutes 1996, section 127.19, is 30.31 amended to read: 30.32 127.19 [OFFICERS, TEACHERS; NEGLECT OF DUTY; PENALTY.] 30.33 Any school officer, truant officer, public or nonpublic 30.34 school teacher, principal, district superintendent, or person 30.35 providing instruction other than a parent refusing, willfully 30.36 failing, or neglecting to perform any duty imposed by sections 31.1 120.101 to 120.14 is guilty of a misdemeanor; and, upon31.2conviction,. All persons found guilty shall be punished for 31.3 each offense by a fine of not more than $10 or by imprisonment 31.4 for not more than ten days. All fines, when collected, shall be 31.5 paid into the county treasury for the benefit of the school 31.6 district in which the offense is committed. 31.7 Sec. 56. Minnesota Statutes 1996, section 127.20, is 31.8 amended to read: 31.9 127.20 [VIOLATIONS; PENALTIES.] 31.10 Any person who fails or refuses to provide for instruction 31.11 of a child of whom the person has legal custody, and who is 31.12 required by section 120.101, subdivision 5, to receive 31.13 instruction, when notified so to do by a truant officer or other 31.14 official, or any person who induces or attempts to induce any 31.15suchchild unlawfully to be absent from school, or who knowingly 31.16 harbors or employs, while school is in session, any child 31.17 unlawfully absent from school, shall be guilty of a 31.18 misdemeanor. Any fines collected shall be paid into the county 31.19 treasury for the benefit of the school district in which the 31.20 offense is committed. 31.21 Sec. 57. [REPEALER.] 31.22 Minnesota Statutes 1996, section 120.90, is repealed. 31.23 Sec. 58. [INSTRUCTION TO REVISOR.] 31.24 The revisor of statutes shall renumber each section of 31.25 Minnesota Statutes listed in column A with the number listed in 31.26 column B. The revisor shall also make necessary cross-reference 31.27 changes consistent with the renumbering. 31.28 Column A Column B 31.29 120.01 120A.01 31.30 120.011 120A.02 31.31 120.0112 120A.03 31.32 120.02, subd. 1 120A.04, subd. 1 31.33 subd. 2 subd. 4 31.34 subd. 3 subd. 8 31.35 subd. 4 subd. 3 31.36 subd. 5 subd. 6 32.1 subd. 6 subd. 16 32.2 subd. 8 subd. 7 32.3 subd. 9 subd. 2 32.4 subd. 12 subd. 15 32.5 subd. 13 subd. 5 32.6 subd. 14 subd. 10 32.7 subd. 15 subd. 14 32.8 subd. 18 subd. 12 32.9 120.05, subd. 2 120A.04, subd. 9 32.10 subd. 3 subd. 11 32.11 subd. 4 subd. 13 32.12 subd. 5 subd. 17 32.13 120.06, subd. 1 120A.10, subd. 1 32.14 subd. 2a subd. 2 32.15 subd. 3 subd. 3 32.16 123.35, subd. 8a 120A.11, subd. 1 32.17 subd. 8b subd. 2 32.18 subd. 9 subd. 3 32.19 120.062, subd. 2 120A.12, subd. 1 32.20 subd. 3 subd. 2 32.21 subd. 4 subd. 3 32.22 subd. 5 subd. 4 32.23 subd. 6 subd. 5 32.24 subd. 7 subd. 6 32.25 subd. 8a subd. 7 32.26 subd. 9 subd. 8 32.27 subd. 10 subd. 9 32.28 subd. 11 subd. 10 32.29 subd. 12 subd. 11 32.30 120.0621, subd. 1 120A.13, subd. 1 32.31 subd. 2 subd. 2 32.32 subd. 3 subd. 3 32.33 subd. 3a subd. 4 32.34 subd. 4 subd. 5 32.35 subd. 5a subd. 6 32.36 subd. 5b subd. 7 33.1 subd. 6 subd. 8 33.2 subd. 7 subd. 9 33.3 120.08 120A.14 33.4 120.075, subd. 1 120A.15, subd. 1 33.5 subd. 1a subd. 2 33.6 subd. 2 subd. 3 33.7 subd. 3 subd. 4 33.8 subd. 3a subd. 5 33.9 subd. 4 subd. 6 33.10 subd. 5 subd. 7 33.11 120.0751 120A.16 33.12 120.0752 120A.17 33.13 120.063 120A.19 33.14 120.101, subd. 1 120A.20, subd. 1 33.15 subd. 2 subd. 2 33.16 subd. 3 subd. 3 33.17 subd. 4 subd. 4 33.18 subd. 5 subd. 5 33.19 subd. 5a subd. 6 33.20 subd. 5c subd. 7 33.21 subd. 5d subd. 8 33.22 subd. 6 subd. 9 33.23 subd. 7 subd. 10 33.24 subd. 8 subd. 11 33.25 subd. 9 subd. 12 33.26 subd. 10 subd. 13 33.27 120.102 120A.21 33.28 120.103 120A.22 33.29 120.11 120A.23 33.30 120.14 120A.24 33.31 120.19 120A.25 33.32 120.20 120A.26 33.33 120.1015 120A.28 33.34 120.106 120A.29 33.35 120.73, subd. 1 120A.40, subd. 1 33.36 subd. 2 subd. 2 34.1 subd. 2a subd. 3 34.2 subd. 2b subd. 4 34.3 subd. 3 subd. 5 34.4 subd. 4 subd. 6 34.5 120.74 120A.41 34.6 120.75 120A.42 34.7 120.76 120A.43 34.8 ARTICLE 2 34.9 CHAPTER 120B 34.10 EDUCATIONAL OPPORTUNITIES 34.11 Section 1. [120B.01] [DEFINITIONS.] 34.12 For purposes of this chapter, the words defined in section 34.13 120.02 have the same meaning. 34.14 Sec. 2. Minnesota Statutes 1996, section 120.064, 34.15 subdivision 4, is amended to read: 34.16 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 34.17 authorize one or more licensed teachers under section 125.05, 34.18 subdivision 1, to operate a charter school subject to approval 34.19 by the state boardof education. If aschoolboard elects not 34.20 to sponsor a charter school, the applicant may appeal theschool34.21 board's decision to the state boardof educationif two members 34.22 of theschoolboard voted to sponsor the school. If the state 34.23 board authorizes the school, the state boardshallmust sponsor 34.24 the school according to this section. The schoolshallmust be 34.25 organized and operated as a cooperative under chapter 308A or 34.26 nonprofit corporation under chapter 317A. 34.27 (b) Before the operators may form and operate a school, the 34.28 sponsor must file an affidavit with the state boardof education34.29 stating its intent to authorize a charter school. The affidavit 34.30 must state the terms and conditions under which the sponsor 34.31 would authorize a charter school. The state board must approve 34.32 or disapprove the sponsor's proposed authorization within 60 34.33 days of receipt of the affidavit. Failure to obtain state board 34.34 approval precludes a sponsor from authorizing the charter school 34.35 that was the subject of the affidavit. 34.36 (c) The operators authorized to organize and operate a 35.1 schoolshallmust hold an election for members of the school's 35.2 board of directors in a timely manner after the school is 35.3 operating. Any staff members who are employed at the school, 35.4 including teachers providing instruction under a contract with a 35.5 cooperative, and all parents of children enrolled in the school 35.6 may participate in the election. Licensed teachers employed at 35.7 the school, including teachers providing instruction under a 35.8 contract with a cooperative, must be a majority of the members 35.9 of the board of directors. A provisional board may operate 35.10 before the election of the school's board of directors. Board 35.11 of director meetings must comply with section 471.705. 35.12 (d) The granting or renewal of a charter by a sponsoring 35.13 entityshallmust not be conditioned upon the bargaining unit 35.14 status of the employees of the school. 35.15 Sec. 3. Minnesota Statutes 1996, section 120.064, 35.16 subdivision 4a, is amended to read: 35.17 Subd. 4a. [CONVERSION OF EXISTING SCHOOLS.] Aschoolboard 35.18 may convert one or more of its existing schools to charter 35.19 schools under this section if 90 percent of the full-time 35.20 teachers at the school sign a petition seeking conversion. The 35.21 conversion must occur at the beginning of an academic year. 35.22 Sec. 4. Minnesota Statutes 1996, section 120.064, 35.23 subdivision 5, is amended to read: 35.24 Subd. 5. [CONTRACT.] The sponsor's authorization for a 35.25 charter schoolshallmust be in the form of a written contract 35.26 signed by the sponsor and the board of directors of the charter 35.27 school. The contract for a charter schoolshallmust be in 35.28 writing and contain at least the following: 35.29 (1) a description of a program that carries out one or more 35.30 of the purposes in subdivision 1; 35.31 (2) specific outcomes pupils are to achieve under 35.32 subdivision 10; 35.33 (3) admission policies and procedures; 35.34 (4) management and administration of the school; 35.35 (5) requirements and procedures for program and financial 35.36 audits; 36.1 (6) how the school will comply with subdivisions 8, 13, 15, 36.2 and 21; 36.3 (7) assumption of liability by the charter school; 36.4 (8) types and amounts of insurance coverage to be obtained 36.5 by the charter school; and 36.6 (9) the term of the contract, which may be up to three 36.7 years. 36.8 Sec. 5. Minnesota Statutes 1996, section 120.064, 36.9 subdivision 7, is amended to read: 36.10 Subd. 7. [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 36.11 RULES.] A charter school is a public school and is part of the 36.12 state's system of public education. Except as provided in this 36.13 section, a charter school is exempt from all statutes and rules 36.14 applicable to a school, aschoolboard, or aschooldistrict, 36.15 although it may elect to comply with one or more provisions of 36.16 statutes or rules. 36.17 Sec. 6. Minnesota Statutes 1997 Supplement, section 36.18 120.064, subdivision 8, is amended to read: 36.19 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 36.20 all applicable state and local health and safety requirements. 36.21 (b) A school sponsored by a school board may be located in 36.22 any district, unless the school board of the district of the 36.23 proposed location disapproves by written resolution. If such a 36.24schoolboard denies a request to locate within its boundaries a 36.25 charter school sponsored by another school board, the sponsoring 36.26 school board may appeal to the state boardof education. If the 36.27 state board authorizes the school, the state boardshallmust 36.28 sponsor the school. 36.29 (c) A charter school must be nonsectarian in its programs, 36.30 admission policies, employment practices, and all other 36.31 operations. A sponsor may not authorize a charter school or 36.32 program that is affiliated with a nonpublic sectarian school or 36.33 a religious institution. 36.34 (d) Charter schoolsshallmust not be used as a method of 36.35 providing education or generating revenue for students who are 36.36 being home-schooled. 37.1 (e) The primary focus of a charter school must be to 37.2 provide a comprehensive program of instruction for at least one 37.3 grade or age group from five through 18 years of age. 37.4 Instruction may be provided to people younger than five years 37.5 and older than 18 years of age. 37.6 (f) A charter school may not charge tuition. 37.7 (g) A charter school is subject to andshallmust comply 37.8 with chapter 363 and section 126.21. 37.9 (h) A charter school is subject to andshallmust comply 37.10 with The Pupil Fair Dismissal Act, sections 127.26 to 127.39, 37.11 and the Minnesota public school fee law, sections 120.71 to 37.12 120.76. 37.13 (i) A charter school is subject to the same financial 37.14 audits, audit procedures, and audit requirements as aschool37.15 district. The audit must be consistent with the requirements of 37.16 sections 121.904 to 121.917, except to the extent deviations are 37.17 necessary because of the program at the school. The department 37.18 of children, families, and learning, state auditor, or 37.19 legislative auditor may conduct financial, program, or 37.20 compliance audits. 37.21 (j) A charter school is aschooldistrict for the purposes 37.22 of tort liability under chapter 466. 37.23 Sec. 7. Minnesota Statutes 1996, section 120.064, 37.24 subdivision 9, is amended to read: 37.25 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 37.26 limit admission to: 37.27 (1) pupils within an age group or grade level; 37.28 (2) people who are eligible to participate in the 37.29 graduation incentives program under section 126.22; or 37.30 (3) residents of a specific geographic area where the 37.31 percentage of the population of non-Caucasian people of that 37.32 area is greater than the percentage of the non-Caucasian 37.33 population in the congressional district in which the geographic 37.34 area is located, and as long as the school reflects the racial 37.35 and ethnic diversity of the specific area. 37.36 A charter school shall enroll an eligible pupil who submits 38.1 a timely application, unless the number of applications exceeds 38.2 the capacity of a program, class, grade level, or building. In 38.3 this case, pupilsshallmust be accepted by lot. 38.4 A charter school may not limit admission to pupils on the 38.5 basis of intellectual ability, measures of achievement or 38.6 aptitude, or athletic ability. 38.7 Sec. 8. Minnesota Statutes 1997 Supplement, section 38.8 120.064, subdivision 10, is amended to read: 38.9 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 38.10 design its programs to at least meet the outcomes adopted by the 38.11 state boardof educationfor public school students. In the 38.12 absence of state board requirements, the school must meet the 38.13 outcomes contained in the contract with the sponsor. The 38.14 achievement levels of the outcomes contained in the contract may 38.15 exceed the achievement levels of any outcomes adopted by the 38.16 state board for public school students. 38.17 Sec. 9. Minnesota Statutes 1996, section 120.064, 38.18 subdivision 11, is amended to read: 38.19 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 38.20 charter schoolshallmust employ or contract with necessary 38.21 teachers, as defined by section 125.03, subdivision 1, who hold 38.22 valid licenses to perform the particular service for which they 38.23 are employed in the school. The school may employ necessary 38.24 employees who are not required to hold teaching licenses to 38.25 perform duties other than teaching and may contract for other 38.26 services. The school may discharge teachers and nonlicensed 38.27 employees. 38.28 The board of directors also shall decide matters related to 38.29 the operation of the school, including budgeting, curriculum and 38.30 operating procedures. 38.31 Sec. 10. Minnesota Statutes 1996, section 120.064, 38.32 subdivision 12, is amended to read: 38.33 Subd. 12. [PUPILS WITH A DISABILITY.] A charter school 38.34 must comply with sections 120.03 and 120.17 and rules relating 38.35 to the education of pupils with a disability as though it were a 38.36schooldistrict. 39.1 Sec. 11. Minnesota Statutes 1996, section 120.064, 39.2 subdivision 13, is amended to read: 39.3 Subd. 13. [LENGTH OF SCHOOL YEAR.] A charter schoolshall39.4 must provide instruction each year for at least the number of 39.5 days required by section 120.101, subdivision 5. It may provide 39.6 instruction throughout the year according to sections 120.59 to 39.7 120.67 or 121.585. 39.8 Sec. 12. Minnesota Statutes 1996, section 120.064, 39.9 subdivision 14, is amended to read: 39.10 Subd. 14. [REPORTS.] A charter school must report at least 39.11 annually to its sponsor and the state boardof educationthe 39.12 information required by the sponsor or the state board. The 39.13 reports are public data under chapter 13. 39.14 Sec. 13. Minnesota Statutes 1997 Supplement, section 39.15 120.064, subdivision 14a, is amended to read: 39.16 Subd. 14a. [REVIEW AND COMMENT.] The departmentshallmust 39.17 review and comment on the evaluation, by the chartering school 39.18 district, of the performance of a charter school before the 39.19 charter school's contract is renewed. The information from the 39.20 review and comment shall be reported to the state board of 39.21 education in a timely manner. Periodically, the state board 39.22 shall report trends or suggestions based on the evaluation of 39.23 charter school contracts to the education committees of the 39.24 state legislature. 39.25 Sec. 14. Minnesota Statutes 1996, section 120.064, 39.26 subdivision 15, is amended to read: 39.27 Subd. 15. [TRANSPORTATION.] (a) By July 1 of each year, a 39.28 charter schoolshallmust notify the district in which the 39.29 school is located and the department of children, families, and 39.30 learning if it will provide transportation for pupils 39.31 enrolledatin the school for the fiscal year. 39.32 (b) If a charter school elects to provide transportation 39.33 for pupils, the transportationshallmust be provided by the 39.34 charter school within the district in which the charter school 39.35 is located. The stateshallmust pay transportation aid to the 39.36 charter school according to section 124.248, subdivision 1a. 40.1 For pupils who reside outside the district in which the 40.2 charter school is located, the charter school is not required to 40.3 provide or pay for transportation between the pupil's residence 40.4 and the border of the district in which the charter school is 40.5 located. A parent may be reimbursed by the charter school for 40.6 costs of transportation from the pupil's residence to the border 40.7 of the district in which the charter school is located if the 40.8 pupil is from a family whose income is at or below the poverty 40.9 level, as determined by the federal government. The 40.10 reimbursement may not exceed the pupil's actual cost of 40.11 transportation or 15 cents per mile traveled, whichever is 40.12 less. Reimbursement may not be paid for more than 250 miles per 40.13 week. 40.14 At the time a pupil enrolls in a charter school, the 40.15 charter schoolshallmust provide the parent or guardian with 40.16 information regarding the transportation. 40.17 (c) If a charter school does not elect to provide 40.18 transportation, transportation for pupils enrolled at the school 40.19shallmust be provided by the district in which the school is 40.20 located, according to sections 120.062, subdivision 9, and 40.21 123.39, subdivision 6, for a pupil residing in the same district 40.22 in which the charter school is located. Transportation may be 40.23 provided by the district in which the school is located, 40.24 according to sections 120.062, subdivision 9, and 123.39, 40.25 subdivision 6, for a pupil residing in a different district. 40.26 Sec. 15. Minnesota Statutes 1996, section 120.064, 40.27 subdivision 17, is amended to read: 40.28 Subd. 17. [INITIAL COSTS.] A sponsor may authorize a 40.29 charter school before the applicant has secured its space, 40.30 equipment, facilities, and personnel if the applicant indicates 40.31 the authority is necessary for it to raise working capital. A 40.32 sponsor may not authorize a school before the state boardof40.33educationhas approved the authorization. 40.34 Sec. 16. Minnesota Statutes 1996, section 120.064, 40.35 subdivision 19, is amended to read: 40.36 Subd. 19. [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 41.1 teacher employed by aschooldistrict makes a written request 41.2 for an extended leave of absence to teach at a charter school, 41.3 theschooldistrict must grant the leave. Theschooldistrict 41.4 must grant a leave for any number of years requested by the 41.5 teacher, and must extend the leave at the teacher's request. 41.6 Theschooldistrict may require that the request for a leave or 41.7 extension of leave be made up to 90 days before the teacher 41.8 would otherwise have to report for duty. Except as otherwise 41.9 provided in this subdivision and except for section 125.60, 41.10 subdivision 6a, the leave is governed by section 125.60, 41.11 including, but not limited to, reinstatement, notice of 41.12 intention to return, seniority, salary, and insurance. 41.13 During a leave, the teacher may continue to aggregate 41.14 benefits and credits in the teachers' retirement association 41.15 account by paying both the employer and employee contributions 41.16 based upon the annual salary of the teacher for the last full 41.17 pay period before the leave began. The retirement association 41.18 may impose reasonable requirements to efficiently administer 41.19 this subdivision. 41.20 Sec. 17. Minnesota Statutes 1996, section 120.064, 41.21 subdivision 20, is amended to read: 41.22 Subd. 20. [COLLECTIVE BARGAINING.] Employees of the board 41.23 of directors of a charter school may, if otherwise eligible, 41.24 organize under chapter 179A and comply with its provisions. The 41.25 board of directors of a charter school is a public employer, for 41.26 the purposes of chapter 179A, upon formation of one or more 41.27 bargaining units at the school. Bargaining units at the school 41.28shallmust be separate from any other units within the 41.29 sponsoring district, except that bargaining units may remain 41.30 part of the appropriate unit within the sponsoring district, if 41.31 the employees of the school, the board of directors of the 41.32 school, the exclusive representative of the appropriate unit in 41.33 the sponsoring district, and the board of the sponsoring 41.34 district agree to include the employees in the appropriate unit 41.35 of the sponsoring district. 41.36 Sec. 18. Minnesota Statutes 1997 Supplement, section 42.1 120.064, subdivision 20a, is amended to read: 42.2 Subd. 20a. [TEACHER AND OTHER EMPLOYEE RETIREMENT.] (a) 42.3 Teachers in a charter schoolshallmust be public school 42.4 teachers for the purposes of chapters 354 and 354a. 42.5 (b) Except for teachers under paragraph (a), employees in a 42.6 charter schoolshallmust be public employees for the purposes 42.7 of chapter 353. 42.8 Sec. 19. Minnesota Statutes 1996, section 120.064, 42.9 subdivision 21, is amended to read: 42.10 Subd. 21. [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 42.11 duration of the contract with a sponsorshallmust be for the 42.12 term contained in the contract according to subdivision 5. The 42.13 sponsor may or may not renew a contract at the end of the term 42.14 for any ground listed in paragraph (b). A sponsor may 42.15 unilaterally terminate a contract during the term of the 42.16 contract for any ground listed in paragraph (b). At least 60 42.17 days before not renewing or terminating a contract, the sponsor 42.18 shall notify the board of directors of the charter school of the 42.19 proposed action in writing. The notice shall state the grounds 42.20 for the proposed action in reasonable detail and that the 42.21 charter school's board of directors may request in writing an 42.22 informal hearing before the sponsor within 14 days of receiving 42.23 notice of nonrenewal or termination of the contract. Failure by 42.24 the board of directors to make a written request for a hearing 42.25 within the 14-day period shall be treated as acquiescence to the 42.26 proposed action. Upon receiving a timely written request for a 42.27 hearing, the sponsor shall give reasonable notice to the charter 42.28 school's board of directors of the hearing date. The sponsor 42.29 shall conduct an informal hearing before taking final action. 42.30 The sponsor shall take final action to renew or not renew a 42.31 contract by the last day of classes in the school year. If the 42.32 sponsor is a localschoolboard, the school's board of directors 42.33 may appeal the sponsor's decision to the state boardof42.34education. 42.35 (b) A contract may be terminated or not renewed upon any of 42.36 the following grounds: 43.1 (1) failure to meet the requirements for pupil performance 43.2 contained in the contract; 43.3 (2) failure to meet generally accepted standards of fiscal 43.4 management; 43.5 (3)forviolations of law; or 43.6 (4) other good cause shown. 43.7 If a contract is terminated or not renewed, the school 43.8shallmust be dissolved according to the applicable provisions 43.9 of chapter 308A or 317A. 43.10 Sec. 20. Minnesota Statutes 1996, section 120.064, 43.11 subdivision 22, is amended to read: 43.12 Subd. 22. [PUPIL ENROLLMENT.] If a contract is not renewed 43.13 or is terminated according to subdivision 21, a pupil who 43.14 attended the school, siblings of the pupil, or another pupil who 43.15 resides in the same place as the pupil may enroll in the 43.16 resident district or may submit an application to a nonresident 43.17 district according to section 120.062 at any time. Applications 43.18 and notices required by section 120.062shallmust be processed 43.19 and provided in a prompt manner. The application and notice 43.20 deadlines in section 120.062 do not apply under these 43.21 circumstances. 43.22 Sec. 21. Minnesota Statutes 1996, section 120.064, 43.23 subdivision 24, is amended to read: 43.24 Subd. 24. [IMMUNITY.] The state boardof education, 43.25 members of the state board, a sponsor, members of the board of a 43.26 sponsor in their official capacity, and employees of a sponsor 43.27 are immune from civil or criminal liability with respect to all 43.28 activities related to a charter school they approve or sponsor. 43.29 The board of directors shall obtain at least the amount of and 43.30 types of insurance required by the contract, according to 43.31 subdivision 5. 43.32 Sec. 22. Minnesota Statutes 1996, section 120.17, 43.33 subdivision 1, is amended to read: 43.34 Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A 43.35 DISABILITY.] Every districtshallmust provide special 43.36 instruction and services, either within the district or in 44.1 another district, for children with a disability who are 44.2 residents of the district and who are disabled as set forth in 44.3 section 120.03. Notwithstanding any age limits in laws to the 44.4 contrary, special instruction and services must be provided from 44.5 birth until September 1 after the child with a disability 44.6 becomes 22 years old but shall not extend beyond secondary 44.7 school or its equivalent, except as provided in section 126.22, 44.8 subdivision 2. Local health, education, and social service 44.9 agenciesshallmust refer children under age five who are known 44.10 to need or suspected of needing special instruction and services 44.11 to the school district. Districts with less than the minimum 44.12 number of eligible children with a disability as determined by 44.13 the state boardshallmust cooperate with other districts to 44.14 maintain a full range of programs for education and services for 44.15 children with a disability. This subdivision does not alter the 44.16 compulsory attendance requirements of section 120.101. 44.17 Sec. 23. Minnesota Statutes 1996, section 120.17, 44.18 subdivision 1b, is amended to read: 44.19 Subd. 1b. [HIGH SCHOOL DIPLOMA.] Upon completion of 44.20 secondary school or the equivalent, a pupil with a disability 44.21 who satisfactorily attains the objectives in the pupil's 44.22 individual education planshallmust be granted a high school 44.23 diploma that is identical to the diploma granted to a pupil 44.24 without a disability. 44.25 Sec. 24. Minnesota Statutes 1996, section 120.17, 44.26 subdivision 2, is amended to read: 44.27 Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) Special 44.28 instruction and services for children with a disability must be 44.29 based on the assessment and individual education plan. The 44.30 instruction and services may be provided by one or more of the 44.31 following methods: 44.32 (1) in connection with attending regular elementary and 44.33 secondary school classes; 44.34 (2) establishment of special classes; 44.35 (3) at the home or bedside of the child; 44.36 (4) in other districts; 45.1 (5) instruction and services by special education 45.2 cooperative centers established under this section, or in 45.3 another member district of the cooperative center to which the 45.4 resident district of the child with a disability belongs; 45.5 (6) in a state residential school or a school department of 45.6 a state institution approved by the commissioner; 45.7 (7) in other states; 45.8 (8) by contracting with public, private, or voluntary 45.9 agencies; 45.10 (9) for children under age five and their families, 45.11 programs and services established through collaborative efforts 45.12 with other agencies; 45.13 (10) for children under age five and their families, 45.14 programs in which children with a disability are served with 45.15 children without a disability; and 45.16 (11) any other method approved by the commissioner. 45.17 (b) Preference shall be given to providing special 45.18 instruction and services to children under age three and their 45.19 families in the residence of the child with the parent or 45.20 primary caregiver, or both, present. 45.21 (c) The primary responsibility for the education of a child 45.22 with a disabilityshallmust remain with the district of the 45.23 child's residence regardless of which method of providing 45.24 special instruction and services is used. If a district other 45.25 than a child's district of residence provides special 45.26 instruction and services to the child, then the district 45.27 providing the special instruction and servicesshallmust notify 45.28 the child's district of residence before the child's individual 45.29 education plan is developed andshallmust provide the district 45.30 of residence an opportunity to participate in the plan's 45.31 development. The district of residence must inform the parents 45.32 of the child about the methods of instruction that are available. 45.33 (d) Paragraphs (e) to (i) may be cited as the "Blind 45.34 Persons' Literacy Rights and Education Act." 45.35 (e) The following definitions apply to paragraphs (f) to 45.36 (i). 46.1 "Blind student" means an individual who is eligible for 46.2 special educational services and who: 46.3 (1) has a visual acuity of 20/200 or less in the better eye 46.4 with correcting lenses or has a limited field of vision such 46.5 that the widest diameter subtends an angular distance of no 46.6 greater than 20 degrees; or 46.7 (2) has a medically indicated expectation of visual 46.8 deterioration. 46.9 "Braille" means the system of reading and writing through 46.10 touch commonly known as standard English Braille. 46.11 "Individualized education plan" means a written statement 46.12 developed for a student eligible for special education and 46.13 services pursuant to this section and section 602(a)(20) of part 46.14 A of the Individuals with Disabilities Education Act, United 46.15 States Code, title 20, section 1401(a). 46.16 (f) In developing an individualized education plan for each 46.17 blind student the presumption must be that proficiency in 46.18 Braille reading and writing is essential for the student to 46.19 achieve satisfactory educational progress. The assessment 46.20 required for each student must include a Braille skills 46.21 inventory, including a statement of strengths and deficits. 46.22 Braille instruction and use are not required by this paragraph 46.23 if, in the course of developing the student's individualized 46.24 education program, team members concur that the student's visual 46.25 impairment does not affect reading and writing performance 46.26 commensurate with ability. This paragraph does not require the 46.27 exclusive use of Braille if other special education services are 46.28 appropriate to the student's educational needs. The provision 46.29 of other appropriate services does not preclude Braille use or 46.30 instruction. Instruction in Braille reading and writingshall46.31 must be available for each blind student for whom the 46.32 multidisciplinary team has determined that reading and writing 46.33 is appropriate. 46.34 (g) Instruction in Braille reading and writing must be 46.35 sufficient to enable each blind student to communicate 46.36 effectively and efficiently with the same level of proficiency 47.1 expected of the student's peers of comparable ability and grade 47.2 level. 47.3 (h) The student's individualized education plan must 47.4 specify: 47.5 (1) the results obtained from the assessment required under 47.6 paragraph (f); 47.7 (2) how Braille will be implemented through integration 47.8 with other classroom activities; 47.9 (3) the date on which Braille instruction will begin; 47.10 (4) the length of the period of instruction and the 47.11 frequency and duration of each instructional session; 47.12 (5) the level of competency in Braille reading and writing 47.13 to be achieved by the end of the period and the objective 47.14 assessment measures to be used; and 47.15 (6) if a decision has been made under paragraph (f) that 47.16 Braille instruction or use is not required for the student: 47.17 (i) a statement that the decision was reached after a 47.18 review of pertinent literature describing the educational 47.19 benefits of Braille instruction and use; and 47.20 (ii) a specification of the evidence used to determine that 47.21 the student's ability to read and write effectively without 47.22 Braille is not impaired. 47.23 (i) Instruction in Braille reading and writing is a service 47.24 for the purpose of special education and services under this 47.25 section. 47.26 (j) Paragraphs (e) to (i)shallmust not be construed to 47.27 supersede any rights of a parent or guardian of a child with a 47.28 disability under federal or state law. 47.29 Sec. 25. Minnesota Statutes 1996, section 120.17, 47.30 subdivision 3, is amended to read: 47.31 Subd. 3. [RULES OFTHESTATE BOARD.] (a) The state board 47.32shall promulgatemust adopt rules relative to qualifications of 47.33 essential personnel, courses of study, methods of instruction, 47.34 pupil eligibility, size of classes, rooms, equipment, 47.35 supervision, parent consultation, and any other rules it deems 47.36 necessary for instruction of children with a disability. These 48.1 rulesshallmust provide standards and procedures appropriate 48.2 for the implementation of and within the limitations of 48.3 subdivisions 3a and 3b. These rulesshallmust also provide 48.4 standards for the discipline, control, management, and 48.5 protection of children with a disability. The state boardshall48.6 must not adopt rules for pupils served in level 1, 2, or 3, as 48.7 defined in Minnesota Rules, part 3525.2340, establishing either 48.8 case loads or the maximum number of pupils that may be assigned 48.9 to special education teachers. The state board, in consultation 48.10 with the departments of health and human services,shallmust 48.11 adopt permanent rules for instruction and services for children 48.12 under age five and their families. These rules are binding on 48.13 state and local education, health, and human services agencies. 48.14 The state boardshallmust adopt rules to determine eligibility 48.15 for special education services. The rulesshallmust include 48.16 procedures and standards by which to grant variances for 48.17 experimental eligibility criteria. The state boardshallmust, 48.18 according to section 14.05, subdivision 4, notify a district 48.19 applying for a variance from the rules within 45 calendar days 48.20 of receiving the request whether the request for the variance 48.21 has been granted or denied. If a request is denied, the 48.22 boardshallmust specify the program standards used to evaluate 48.23 the request and the reasons for denying the request. 48.24 (b) The state's regulatory scheme should support schools by 48.25 assuring that all state special education rules adopted by the 48.26 state boardof educationresult in one or more of the following 48.27 outcomes: 48.28 (1) increased time available to teachers for educating 48.29 students through direct and indirect instruction; 48.30 (2) consistent and uniform access to effective education 48.31 programs for students with disabilities throughout the state; 48.32 (3) reduced inequalities, conflict, and court actions 48.33 related to the delivery of special education instruction and 48.34 services for students with disabilities; 48.35 (4) clear expectations for service providers and for 48.36 students with disabilities; 49.1 (5) increased accountability for all individuals and 49.2 agencies that provide instruction and other services to students 49.3 with disabilities; 49.4 (6) greater focus for the state and local resources 49.5 dedicated to educating students with disabilities; and 49.6 (7) clearer standards for evaluating the effectiveness of 49.7 education and support services for students with disabilities. 49.8 Sec. 26. Minnesota Statutes 1996, section 120.17, 49.9 subdivision 3a, is amended to read: 49.10 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district 49.11shallmust ensurethatthe following: 49.12 (1) all students with disabilities are provided the special 49.13 instruction and services which are appropriate to their needs. 49.14 Where the individual education plan team has determined 49.15 appropriate goals and objectives based on the student's needs, 49.16 including the extent to which the student can be included in the 49.17 least restrictive environment, and where there are essentially 49.18 equivalent and effective instruction, related services, or 49.19 assistive technology devices available to meet the student's 49.20 needs, cost to theschooldistrict may be among the factors 49.21 considered by the team in choosing how to provide the 49.22 appropriate services, instruction, or devices that are to be 49.23 made part of the student's individual education plan. The 49.24 student's needs and the special education instruction and 49.25 services to be providedshallmust be agreed upon through the 49.26 development of an individual education plan. The planshall49.27 must address the student's need to develop skills to live and 49.28 work as independently as possible within the community. By 49.29 grade 9 or age 14, the planshallmust address the student's 49.30 needs for transition from secondary services to post-secondary 49.31 education and training, employment, community participation, 49.32 recreation, and leisure and home living. The plan must include 49.33 a statement of the needed transition services, including a 49.34 statement of the interagency responsibilities or linkages or 49.35 both before secondary services are concluded; 49.36 (2) children with a disability under age five and their 50.1 families are provided special instruction and services 50.2 appropriate to the child's level of functioning and needs; 50.3 (3) children with a disability and their parents or 50.4 guardians are guaranteed procedural safeguards and the right to 50.5 participate in decisions involving identification, assessment 50.6 including assistive technology assessment, and educational 50.7 placement of children with a disability; 50.8 (4) to the maximum extent appropriate, children with a 50.9 disability, including those in public or private institutions or 50.10 other care facilities, are educated with children who are not 50.11 disabled, and that special classes, separate schooling, or other 50.12 removal of children with a disability from the regular 50.13 educational environment occurs only when and to the extent that 50.14 the nature or severity of the disability is such that education 50.15 in regular classes with the use of supplementary services cannot 50.16 be achieved satisfactorily; 50.17 (5) in accordance with recognized professional standards, 50.18 testing and evaluation materials, and proceduresutilizedused 50.19 for the purposes of classification and placement of children 50.20 with a disability are selected and administered so as not to be 50.21 racially or culturally discriminatory; and 50.22 (6) the rights of the child are protected when the parents 50.23 or guardians are not known or not available, or the child is a 50.24 ward of the state. 50.25 Sec. 27. Minnesota Statutes 1996, section 120.17, 50.26 subdivision 3b, is amended to read: 50.27 Subd. 3b. [PROCEDURES FOR DECISIONS.] Every districtshall50.28utilizemust use at least the following procedures for decisions 50.29 involving identification, assessment, and educational placement 50.30 of children with a disability: 50.31 (a) Parents and guardiansshallmust receive prior written 50.32 notice of: 50.33 (1) any proposed formal educational assessment or proposed 50.34 denial of a formal educational assessment of their child; 50.35 (2) a proposed placement of their child in, transfer from 50.36 or to, or denial of placement in a special education program; or 51.1 (3) the proposed provision, addition, denial, or removal of 51.2 special education services for their child;. 51.3 (b) The districtshallmust not proceed with the initial 51.4 formal assessment of a child, the initial placement of a child 51.5 in a special education program, or the initial provision of 51.6 special education services for a child without the prior written 51.7 consent of the child's parent or guardian. The refusal of a 51.8 parent or guardian to consent may be overridden by the decision 51.9 in a hearing held pursuant toclauseparagraph (e) at the 51.10 district's initiative;. 51.11 (c) Parents and guardiansshallmust have an opportunity to 51.12 meet with appropriate district staff in at least one 51.13 conciliation conference, mediation, or other method of 51.14 alternative dispute resolution that the parties agree to, if 51.15 they object to any proposal of which they are notified pursuant 51.16 toclauseparagraph (a). The conciliation process or other form 51.17 of alternative dispute resolutionshallmust not be used to deny 51.18 or delay a parent or guardian's right to a due process hearing. 51.19 If the parent or guardian refuses efforts by the district to 51.20 conciliate the dispute with theschooldistrict, the requirement 51.21 of an opportunity for conciliation or other alternative dispute 51.22 resolutionshallmust be deemed to be satisfied. 51.23 Notwithstanding other law, in any proceeding following a 51.24 conciliation conference, theschooldistrict must not offer a 51.25 conciliation conference memorandum into evidence, except for any 51.26 portions that describe the district's final proposed offer of 51.27 service. Otherwise, with respect to forms of dispute 51.28 resolution, mediation, or conciliation, Minnesota Rule of 51.29 Evidence 408 applies. The departmentof children, families, and51.30learningmay reimburse the districts or directly pay the costs 51.31 of lay advocates, not to exceed $150 per dispute, used in 51.32 conjunction with alternative dispute resolution. 51.33 (d) The commissionershallmust establish a mediation 51.34 process to assist parents,schooldistricts, or other parties to 51.35 resolve disputes arising out of the identification, assessment, 51.36 or educational placement of children with a disability. The 52.1 mediation process must be offered as an informal alternative to 52.2 the due process hearing provided underclauseparagraph (e), but 52.3 must not be used to deny or postpone the opportunity of a parent 52.4 or guardian to obtain a due process hearing. 52.5 (e) Parents, guardians, and the districtshallmust have an 52.6 opportunity to obtain an impartial due process hearing initiated 52.7 and conducted by and in theschooldistrict responsible for 52.8 assuring that an appropriate program is provided in accordance 52.9 with state board rules, if the parent or guardian continues to 52.10 object to: 52.11 (1) a proposed formal educational assessment or proposed 52.12 denial of a formal educational assessment of their child; 52.13 (2) the proposed placement of their child in, or transfer 52.14 of their child to a special education program; 52.15 (3) the proposed denial of placement of their child in a 52.16 special education program or the transfer of their child from a 52.17 special education program; 52.18 (4) the proposed provision or addition of special education 52.19 services for their child; or 52.20 (5) the proposed denial or removal of special education 52.21 services for their child. 52.22 Within five business days after the request for a hearing, 52.23 or as directed by the hearing officer, the objecting partyshall52.24 must provide the other party with a brief written statement of 52.25 particulars of the objection, the reasons for the objection, and 52.26 the specific remedies sought. The other party shall provide the 52.27 objecting party with a written response to the statement of 52.28 objections within five business days of receipt of the statement. 52.29 The hearingshallmust take place before an impartial 52.30 hearing officer mutually agreed to by the school board and the 52.31 parent or guardian. Within four business days of the receipt of 52.32 the request for the hearing, if the parties have not agreed on 52.33 the hearing officer, theschoolboardshallmust request the 52.34 commissioner to appoint a hearing officer. Theschoolboard 52.35shallmust include with the request the name of the person 52.36 requesting the hearing, the name of the student, the attorneys 53.1 involved, if any, and the date the hearing request was 53.2 received. The hearing officershallmust not be aschoolboard 53.3 member or employee of theschooldistrict where the child 53.4 resides or of the child'sschooldistrict of residence, an 53.5 employee of any other public agency involved in the education or 53.6 care of the child, or any person with a personal or professional 53.7 interestwhichthat would conflict with the person's objectivity 53.8 at the hearing. A person who otherwise qualifies as a hearing 53.9 officer is not an employee of the district solely because the 53.10 person is paid by the district to serve as a hearing officer. 53.11 If the hearing officer requests an independent educational 53.12 assessment of a child, the cost of the assessmentshallmust be 53.13 at district expense. The proceedingsshallmust be recorded and 53.14 preserved, at the expense of the school district, pending 53.15 ultimate disposition of the action. 53.16 (f) The decision of the hearing officer pursuant toclause53.17 paragraph (e) shall be rendered not more than 45 calendar days 53.18 from the date of the receipt of the request for the hearing, 53.19 except that hearing officers are encouraged to accelerate the 53.20 timeline to 30 days for children birth through two whose needs 53.21 change rapidly and require quick resolution of complaints. A 53.22 hearing officer may not grant specific extensions of time beyond 53.23 the 45-day period unless requested by either party for good 53.24 cause shown on the record. The decision of the hearing 53.25 officershall beis binding on all parties unless appealed to 53.26 the commissioner by the parent; guardian;schoolboard of the 53.27 district where the child resides pursuant toclause53.28 paragraph (g); and also in the case of children birth through 53.29 two, by the county board. 53.30 The local decisionshallmust: 53.31 (1) be in writing; 53.32 (2) state the controlling facts upon which the decision is 53.33 made in sufficient detail to apprise the parties and the hearing 53.34 review officer of the basis and reason for the decision; and 53.35 (3) be based on the standardsset forthin subdivision 3a 53.36 and the rules of the state board. 54.1 (g) Any local decision issued pursuant toclauses54.2 paragraphs (e) and (f) may be appealed to the commissioner 54.3 within 30 calendar days of receipt of that written decision, by 54.4 the parent, guardian, or theschoolboard of the district 54.5 responsible for assuring that an appropriate program is provided 54.6 in accordance with state board rules. The appealing partyshall54.7 must note the specific parts of the hearing decision being 54.8 appealed. 54.9 If the decision is appealed, a written transcript of the 54.10 hearingshallmust be made by theschooldistrict and provided 54.11 by the district to the parties involved and the hearing review 54.12 officer within five calendar days of the filing of the appeal. 54.13 The hearing review officershallmust conduct an appellate 54.14 review and issue a final independent decision based on an 54.15 impartial review of the local decision and the entire record 54.16 within 30 calendar days after the filing of the appeal. 54.17 However, the hearing review officershallmust seek additional 54.18 evidence if necessary and may afford the parties an opportunity 54.19 for written or oral argument; provided. Any hearing held to 54.20 seek additional evidenceshallmust be an impartial due process 54.21 hearing butshall beis deemed not to be a contested case 54.22 hearing for purposes of chapter 14. The hearing review officer 54.23 may grant specific extensions of time beyond the 30-day period 54.24 at the request of any party for good cause shown on the record. 54.25 The final decisionshallmust: 54.26 (1) be in writing; 54.27 (2) include findings and conclusions; and 54.28 (3) be based upon the standardsset forthin subdivision 3a 54.29 and in the rules of the state board. 54.30 (h) The decision of the hearing review officershall beis 54.31 final unless appealed by the parent or guardian orschoolboard 54.32 to the Minnesota court of appeals or federal district court as 54.33 provided by federal law. State judicial reviewshallmust be in 54.34 accordance with chapter 14. 54.35 (i) The commissionerof children, families, and learning54.36shallmust select an individual who has the qualifications 55.1 enumerated in this paragraph to serve as the hearing review 55.2 officer: 55.3 (1) the individual must be knowledgeable and impartial; 55.4 (2) the individual must not have a personal interest in or 55.5 specific involvement with the student who is a party to the 55.6 hearing; 55.7 (3) the individual must not have been employed as an 55.8 administrator by the district that is a party to the hearing; 55.9 (4) the individual must not have been involved in the 55.10 selection of the administrators of the district that is a party 55.11 to the hearing; 55.12 (5) the individual must not have a personal, economic, or 55.13 professional interest in the outcome of the hearing other than 55.14 the proper administration of the federal and state laws, rules, 55.15 and policies; 55.16 (6) the individual must not have substantial involvement in 55.17 the development of a state or local policy or procedures that 55.18 are challenged in the appeal; 55.19 (7) the individual is not a current employee or board 55.20 member of a Minnesota public school district, education 55.21 district, intermediate unit or regional education agency, the 55.22 departmentof children, families, and learning, and the state 55.23 board of education; and 55.24 (8) the individual is not a current employee or board 55.25 member of a disability advocacy organization or group. 55.26 (j) In all appeals, the parent or guardian of the pupil 55.27 with a disability or the district that is a party to the hearing 55.28 may challenge the impartiality or competence of the proposed 55.29 hearing review officer by applying to the hearing review officer. 55.30 (k) Pending the completion of proceedings pursuant to this 55.31 subdivision, unless the district and the parent or guardian of 55.32 the child agree otherwise, the childshallmust remain in the 55.33 child's current educational placement andshallmust not be 55.34 denied initial admission to school. 55.35 (l) The child'sschooldistrict of residence, a resident 55.36 district, and providing districtshallmust receive notice of 56.1 and may be a party to any hearings or appeals under this 56.2 subdivision. 56.3 (m) Aschooldistrict is not liable for harmless technical 56.4 violations of this subdivision or rules implementing this 56.5 subdivision if the school district can demonstrate on a 56.6 case-by-case basis that the violations did not harm the 56.7 student's educational progress or the parent or guardian's right 56.8 to notice, participation, or due process. 56.9 (n) Within ten calendar days after appointment, the hearing 56.10 officershallmust schedule and hold a prehearing conference. 56.11 At that conference, or later, the hearing officer may take any 56.12 appropriate actionthata courtmightmay take under Rule 16 of 56.13 Minnesota Rules of Civil Procedure including, but not limited 56.14 to, scheduling, jurisdiction, and listing witnesses including 56.15 expert witnesses. 56.16 (o) A hearing officer or hearing review officer appointed 56.17 under this subdivisionshall beis deemed to be an employee of 56.18 the state under section 3.732 for the purposes of section 3.736 56.19 only. 56.20 (p) In order to be eligible for selection, hearing officers 56.21 and hearing review officersshallmust participate in training 56.22 and follow procedures as designated by the commissioner. 56.23 (q) The hearing officer may admit all evidencewhichthat 56.24 possesses probative value, including hearsay, if it is the type 56.25 of evidence on which reasonable, prudent persons are accustomed 56.26 to rely in the conduct of their serious affairs. The hearing 56.27 officershallmust give effect to the rules of privilege 56.28 recognized by law. Evidencewhichthat is incompetent, 56.29 irrelevant, immaterial, or unduly repetitious shall be excluded. 56.30 Sec. 28. Minnesota Statutes 1996, section 120.17, 56.31 subdivision 3d, is amended to read: 56.32 Subd. 3d. [INTERAGENCY SERVICES.] If at the time of 56.33 initial referral for an educational assessment, or a 56.34 reassessment, theschooldistrict determines that a child with 56.35 disabilities who is age 3 through 21 may be eligible for 56.36 interagency services, the district may request that the county 57.1 of residence provide a representative to the initial assessment 57.2 or reassessment team meeting or the first individual education 57.3 plan team meeting following the assessment or reassessment. The 57.4 district may request to have a county representative attend 57.5 other individual education plan team meetings when it is 57.6 necessary to facilitate coordination between district and county 57.7 provided services. Upon request from aschooldistrict, the 57.8 resident county shall provide a representative to assist the 57.9 individual education plan team in determining the child's 57.10 eligibility for existing health, mental health, or other support 57.11 services administered or provided by the county. The individual 57.12 education plan team and the county representativeshallmust 57.13 develop an interagency plan of care for an eligible child and 57.14 the child's family to coordinate services required under the 57.15 child's individual education plan with county services. The 57.16 interagency plan of careshallmust include appropriate family 57.17 information with the consent of the family, a description of how 57.18 services will be coordinated between the district and county, a 57.19 description of service coordinator responsibilities and 57.20 services, and a description of activities for obtaining 57.21 third-party payment for eligible services, including medical 57.22 assistance payments. 57.23 Sec. 29. Minnesota Statutes 1996, section 120.17, 57.24 subdivision 4, is amended to read: 57.25 Subd. 4. [SPECIAL INSTRUCTIONS FOR NONRESIDENT CHILDREN.] 57.26 When a school district provides instruction and services outside 57.27 the district of residence, board and lodging, and any tuition to 57.28 be paid, shall be paid by the district of residence. The 57.29 tuition rate to be charged for any child with a disabilityshall57.30 must be the actual cost of providing special instruction and 57.31 services to the child including a proportionate amount for 57.32 capital outlay and debt service but not including any amount for 57.33 transportation, minus the amount of special aid for children 57.34 with a disability received on behalf of that child. If the 57.35 boards involved do not agree upon the tuition rate, either board 57.36 may apply to the commissioner to fix the rate. The commissioner 58.1shallmust then set a date for a hearing, giving each board at 58.2 least ten days' notice, and after the hearing the 58.3 commissionershallmust make an order fixing the tuition rate, 58.4 whichshall beis binding on both school districts. 58.5 When a district provides instruction and services in a day 58.6 program outside the district of residence, the district of 58.7 residenceshall beis responsible for providing transportation. 58.8 When a district provides instruction and services requiring 58.9 board and lodging or placement in a residential program outside 58.10 the district of residence, the nonresident district in which the 58.11 child is placedshall beis responsible for providing 58.12 transportation. Transportation costs shall be paid by the 58.13 district responsible for providing transportation and the state 58.14 shall pay transportation aid to that district. 58.15 For the purposes of this section, any school district may 58.16 enter into an agreement, upon mutually agreed upon terms and 58.17 conditionswhich are mutually agreed upon, to provide special 58.18 instruction and services for children with a disability. In 58.19 that event, one of the participating units may employ and 58.20 contract with necessary qualified personnel to offer services in 58.21 the several districts. Each participating unitshallmust 58.22 reimburse the employing unit a proportionate amount of the 58.23 actual cost of providing the special instruction and services, 58.24 less the amount of state special education aid, which shall be 58.25 claimed in full by the employing district. 58.26 Sec. 30. Minnesota Statutes 1996, section 120.17, 58.27 subdivision 4a, is amended to read: 58.28 Subd. 4a. [ATTENDANCE IN ANOTHER DISTRICT.] No resident of 58.29 a district who is eligible for special instruction and services 58.30 pursuant to this sectionshallmay be denied provision of this 58.31 instruction and service because of attending a public school in 58.32 anotherschooldistrict pursuant to section 123.39, subdivision 58.33 5, if the attendance is not subject to section 120.075, 58.34 120.0751, or 120.0752. If the pupil attends a public school 58.35 located in a contiguous district and the district of attendance 58.36 does not provide special instruction and services, the district 59.1 of residenceshallmust provide necessary transportation for the 59.2 pupil between the boundary of the district of residence and the 59.3 educational facility where special instruction and services are 59.4 provided within the district of residence. The district of 59.5 residence may provide necessary transportation for the pupil 59.6 between its boundary and the school attended in the contiguous 59.7 district, butshallmust not pay the cost of transportation 59.8 provided outside the boundary of the district of residence. 59.9 Sec. 31. Minnesota Statutes 1996, section 120.17, 59.10 subdivision 5, is amended to read: 59.11 Subd. 5. [SCHOOL OF PARENTS' CHOICE.] Nothing in this 59.12 chaptershallmust be construed as preventing parents of a child 59.13 with a disability from sendingsuchthe child to a school of 59.14 their choice, if they so elect, subject to admission standards 59.15 and policies adopted according to chapter 128A, and all other 59.16 provisions of chapters 120 to 129. 59.17 Sec. 32. Minnesota Statutes 1996, section 120.17, 59.18 subdivision 5a, is amended to read: 59.19 Subd. 5a. [SUMMER PROGRAMS.] A district may provide summer 59.20 programs for children with a disability living within the 59.21 district and nonresident children temporarily placed in the 59.22 district pursuant to subdivision 6 or 7. Prior to March 31 or 59.23 30 days after the child with a disability is placed in the 59.24 district, whichever is later, the providing district shall give 59.25 notice to the district of residence of any nonresident children 59.26 temporarily placed in the district pursuant to subdivision 6 or 59.27 7, of its intention to provide these programs. Notwithstanding 59.28 any contrary provisions in subdivisions 6 and 7, theschool59.29 district providing the special instruction and servicesshall59.30 must apply for special education aid for the summer program. 59.31 The unreimbursed actual cost of providing the program for 59.32 nonresident children with a disability, including the cost of 59.33 board and lodging, may be billed to the district of the child's 59.34 residence andshallmust be paid by the resident district. 59.35 Transportation costsshallmust be paid by the district 59.36 responsible for providing transportation pursuant to subdivision 60.1 6 or 7 and transportation aidshallmust be paid to that 60.2 district. 60.3 Sec. 33. Minnesota Statutes 1996, section 120.17, 60.4 subdivision 6, is amended to read: 60.5 Subd. 6. [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 60.6 The responsibility for special instruction and services for a 60.7 child with a disability temporarily placed in another district 60.8 for care and treatment shall be determined in the following 60.9 manner: 60.10 (a) Theschooldistrict of residence of a child shall be 60.11 the district in which the child's parent resides, if living, or 60.12 the child's guardian, or the district designated by the 60.13 commissionerof children, families, and learningif neither 60.14 parent nor guardian is living within the state. 60.15 (b) When a child is temporarily placed for care and 60.16 treatment in a day program located in another district and the 60.17 child continues to live within the district of residence during 60.18 the care and treatment, the district of residence is responsible 60.19 for providing transportation and an appropriate educational 60.20 program for the child. The district may provide the educational 60.21 program at a school within the district of residence, at the 60.22 child's residence, or in the district in which the day treatment 60.23 center is located by paying tuition to that district. 60.24 (c) When a child is temporarily placed in a residential 60.25 program for care and treatment, the nonresident district in 60.26 which the child is placed is responsible for providing an 60.27 appropriate educational program for the child and necessary 60.28 transportation while the child is attending the educational 60.29 program; andshallmust bill the district of the child's 60.30 residence for the actual cost of providing the program, as 60.31 outlined in subdivision 4, except that. However, the board, 60.32 lodging, and treatment costs incurred in behalf of a child with 60.33 a disability placed outside of the school district of residence 60.34 by the commissioner of human services or the commissioner of 60.35 corrections or their agents, for reasons other thanfor making60.36provisionproviding for the child's special educational 61.1 needsshallmust not become the responsibility of either the 61.2 district providing the instruction or the district of the 61.3 child's residence. 61.4 (d) The district of residence shall pay tuition and other 61.5 program costs, not including transportation costs, to the 61.6 district providing the instruction and services. The district 61.7 of residence may claim general education aid for the child as 61.8 provided by law. Transportation costsshallmust be paid by the 61.9 district responsible for providing the transportation and the 61.10 stateshallmust pay transportation aid to that district. 61.11 Sec. 34. Minnesota Statutes 1996, section 120.17, 61.12 subdivision 7, is amended to read: 61.13 Subd. 7. [PLACEMENT IN STATE INSTITUTION; 61.14 RESPONSIBILITY.] (a) Responsibility for special instruction and 61.15 services for a child with a disability placed in a state 61.16 institution on a temporary basisshallmust be determined in the 61.17 following manner: 61.18(a)(1) the legal residence ofsuchthe childshall be61.19 is theschooldistrict in which the child's parent resides, if 61.20 living, or the child's guardian.; and 61.21(b)(2) when the educational needs ofsuchthe child can be 61.22 met through the institutional program, the costs forsuchthe 61.23 instructionshallmust be paid by the department to which the 61.24 institution is assigned. 61.25(c)(b) When it is determined thatsuchthe child can 61.26 benefit from public school enrollment, provision forsuchthe 61.27 instruction shall be made in the following manner: 61.28 (1) determination of eligibility for special instruction 61.29 and servicesshallmust be made by the commissionerof children,61.30families, and learningand the commissioner of the department 61.31 responsible for the institution; 61.32 (2) theschooldistrict where the institution is located 61.33shall beis responsible for providing transportation and an 61.34 appropriate educational program for the child andshallmust 61.35 make a tuition charge to the child's district of residence for 61.36 the actual cost of providing the program; and 62.1 (3) the district of the child's residence shall pay the 62.2 tuition and other program costs excluding transportation costs 62.3 and may claim general education aid for the child. 62.4 Transportation costsshallmust be paid by the district where 62.5 the institution is located and the stateshallmust pay 62.6 transportation aid to that district. 62.7 Sec. 35. Minnesota Statutes 1996, section 120.17, 62.8 subdivision 7a, is amended to read: 62.9 Subd. 7a. [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 62.10 Responsibility for special instruction and services for a 62.11 visually disabled or hearing impaired child attending the 62.12 Minnesota state academy for the deaf or the Minnesota state 62.13 academy for the blindshallmust be determined in the following 62.14 manner: 62.15 (a) The legal residence of the childshall beis theschool62.16 district in which the child's parent or guardian resides. 62.17 (b) When it is determined pursuant to section 128A.05, 62.18 subdivision 1 or 2, that the child is entitled to attend either 62.19 school, the state boardshallmust provide the appropriate 62.20 educational program for the child. The state boardshallmust 62.21 make a tuition charge to the child's district of residence for 62.22 the cost of providing the program. The amount of tuition 62.23 chargedshallmust not exceed the basic revenue of the district 62.24 for that child, for the amount of time the child is in the 62.25 program. For purposes of this subdivision, "basic revenue" has 62.26 the meaning given it in section 124A.22, subdivision 2. The 62.27 district of the child's residenceshallmust pay the tuition and 62.28 may claim general education aid for the child. Tuition received 62.29 by the state board, except for tuition received underclause62.30 paragraph (c),shallmust be deposited in the state treasury as 62.31 provided inclauseparagraph (g). 62.32 (c) In addition to the tuition charge allowed inclause62.33 paragraph (b), the academies may charge the child's district of 62.34 residence for the academy's unreimbursed cost of providing an 62.35 instructional aide assigned to that child, if that aide is 62.36 required by the child's individual education plan. Tuition 63.1 received under thisclauseparagraph must be used by the 63.2 academies to provide the required service. 63.3 (d) When it is determined that the child can benefit from 63.4 public school enrollment but that the child should also remain 63.5 in attendance at the applicable school, theschooldistrict 63.6 where the institution is locatedshallmust provide an 63.7 appropriate educational program for the child andshallmust 63.8 make a tuition charge to the state board for the actual cost of 63.9 providing the program, less any amount of aid received pursuant 63.10 to section 124.32. The state boardshallmust pay the tuition 63.11 and other program costs including the unreimbursed 63.12 transportation costs. Aids for children with a disabilityshall63.13 must be paid to the district providing the special instruction 63.14 and services. Special transportationshallmust be provided by 63.15 the district providing the educational program and the 63.16 stateshallmust reimbursesuchthat district within the limits 63.17 provided by law. 63.18 (e) Notwithstanding the provisions ofclausesparagraphs (b) 63.19 and (d), the state board may agree to make a tuition charge for 63.20 less than the amount specified inclauseparagraph (b) for 63.21 pupils attending the applicable school who are residents of the 63.22 district where the institution is located and who do not board 63.23 at the institution, if that district agrees to make a tuition 63.24 charge to the state board for less than the amount specified 63.25 inclauseparagraph (d) for providing appropriate educational 63.26 programs to pupils attending the applicable school. 63.27 (f) Notwithstanding the provisions ofclausesparagraphs (b) 63.28 and (d), the state board may agree to supply staff from the 63.29 Minnesota state academy for the deaf and the Minnesota state 63.30 academy for the blind to participate in the programs provided by 63.31 the district where the institutions are located when the 63.32 programs are provided to students in attendance at the state 63.33 schools. 63.34 (g) On May 1 of each year, the state board shall count the 63.35 actual number of Minnesota resident kindergarten and elementary 63.36 students and the actual number of Minnesota resident secondary 64.1 students enrolled and receiving education services at the 64.2 Minnesota state academy for the deaf and the Minnesota state 64.3 academy for the blind. The state board shall deposit in the 64.4 state treasury an amount equal to all tuition received less: 64.5 (1) the total number of students on May 1 less 175, times 64.6 the ratio of the number of kindergarten and elementary students 64.7 to the total number of students on May 1, times the general 64.8 education formula allowance; plus 64.9 (2) the total number of students on May 1 less 175, times 64.10 the ratio of the number of secondary students on May 1 to the 64.11 total number of students on May 1, times 1.3, times the general 64.12 education formula allowance. 64.13 (h) The sum provided by the calculation inclause64.14 paragraph (g),subclausesclauses (1) and (2), must be deposited 64.15 in the state treasury and credited to the general operation 64.16 account of the academy for the deaf and the academy for the 64.17 blind. 64.18 (i) There is annually appropriated to the departmentof64.19children, families, and learningfor the Faribault academies the 64.20 tuition amounts received and credited to the general operation 64.21 account of the academies under this section. A balance in an 64.22 appropriation under this paragraph does not cancel but is 64.23 available in successive fiscal years. 64.24 Sec. 36. Minnesota Statutes 1996, section 120.17, 64.25 subdivision 8a, is amended to read: 64.26 Subd. 8a. [RESIDENCE OF CHILD UNDER SPECIAL CONDITIONS.] 64.27 The legal residence of a child with a disability placed in a 64.28 foster facility for care and treatment when: 64.29 (1) parental rights have been terminated by court order; 64.30 (2) parent or guardian is not living within the state; 64.31 (3) no otherschooldistrict residence can be established; 64.32 or 64.33 (4) parent or guardian having legal custody of the child is 64.34 an inmate of a Minnesota correctional facility or is a resident 64.35 of a halfway house under the supervision of the commissioner of 64.36 corrections; 65.1shall beis theschooldistrict in which the child resides. 65.2 The school board of the district of residenceshallmust provide 65.3 the same educational program forsuchthe child as it provides 65.4 for all resident children with a disability in the district. 65.5 Sec. 37. Minnesota Statutes 1996, section 120.17, 65.6 subdivision 9, is amended to read: 65.7 Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district 65.8 who is eligible for special instruction and services pursuant to 65.9 this sectionshallmay be denied provision of this instruction 65.10 and service on a shared time basis because of attendance at a 65.11 nonpublic school defined in section 123.932, subdivision 3. If 65.12 a resident pupil with a disability attends a nonpublic school 65.13 located within the district of residence, the districtshall65.14 must provide necessary transportation for that pupil within the 65.15 district between the nonpublic school and the educational 65.16 facility where special instruction and services are provided on 65.17 a shared time basis. If a resident pupil with a disability 65.18 attends a nonpublic school located in another district and if no 65.19 agreement exists pursuant to section 124A.034, subdivision 1 or 65.20 1a, for the provision of special instruction and services on a 65.21 shared time basis to that pupil by the district of attendance 65.22 and where the special instruction and services are provided 65.23 within the district of residence, the district of 65.24 residenceshallmust provide necessary transportation for that 65.25 pupil between the boundary of the district of residence and the 65.26 educational facility. The district of residence may provide 65.27 necessary transportation for that pupil between its boundary and 65.28 the nonpublic school attended, but the nonpublic schoolshall65.29 must pay the cost of transportation provided outside the 65.30 district boundary. 65.31 Sec. 38. Minnesota Statutes 1996, section 120.17, 65.32 subdivision 10, is amended to read: 65.33 Subd. 10. [NONRESIDENT EDUCATION; BILLING.] All tuition 65.34 billing for the education of nonresident children pursuant to 65.35 this sectionshallmust be done on uniform forms prescribed by 65.36 the commissioner. The billing shall contain an itemized 66.1 statement of costswhichthat are being charged to the district 66.2 of residence. One copy of eachsuchbillingshallmust be filed 66.3 with the commissioner. 66.4 Sec. 39. Minnesota Statutes 1996, section 120.17, 66.5 subdivision 16, is amended to read: 66.6 Subd. 16. [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 66.7 district, group of districts, or special education cooperative, 66.8 in cooperation with the county or counties in which the district 66.9 or cooperative is located,shallmust establish a community 66.10 transition interagency committee for youth with disabilities, 66.11 beginning at grade 9 or age equivalent, and their families. 66.12 Members of the committeeshallmust consist of representatives 66.13 from special education;, vocational and regular education;, 66.14 community education;, post-secondary education and training 66.15 institutions;, adults with disabilities who have received 66.16 transition services if such persons are available;, parents of 66.17 youth with disabilities;, local business or industry;, 66.18 rehabilitation services;, county social services;, health 66.19 agencies;, and additional public or private adult service 66.20 providers as appropriate. The committeeshallmust elect a 66.21 chair andshallmust meet regularly. The committeeshallmust: 66.22 (1) identify current services, programs, and funding 66.23 sources provided within the community for secondary and 66.24 post-secondary aged youth with disabilities and their families; 66.25 (2) facilitate the development of multiagency teams to 66.26 address present and future transition needs of individual 66.27 students on their individual education plans; 66.28 (3) develop a community plan to include mission, goals, and 66.29 objectives, and an implementation plan to assure that transition 66.30 needs of individuals with disabilities are met; 66.31 (4) recommend changes or improvements in the community 66.32 system of transition services; 66.33 (5) exchange agency information such as appropriate data, 66.34 effectiveness studies, special projects, exemplary programs, and 66.35 creative funding of programs; and 66.36 (6) following procedures determined by the commissioner, 67.1 prepare a yearly summary assessing the progress of transition 67.2 services in the community including follow-up of individuals 67.3 with disabilities who were provided transition services to 67.4 determine postschool outcomes. The summary must be disseminated 67.5 to all adult services agencies involved in the planning and to 67.6 the commissionerof children, families, and learningby October 67.7 1 of each year. 67.8 Sec. 40. Minnesota Statutes 1996, section 120.17, 67.9 subdivision 18, is amended to read: 67.10 Subd. 18. [AGENCY ACCESS TO NONPUBLIC DATA.] The 67.11 commissioner of administrationshallmust prepare a form and 67.12 disseminate guidelines for state agencies, political 67.13 subdivisions, and other responsible authorities to use to enable 67.14 a responsible authority to allow another responsible authority 67.15 access to data about a child with a disability that is 67.16 classified as not public. The form and guidelines must be 67.17 consistent with section 13.05, subdivision 9, and federal law, 67.18 and are not subject to the rulemaking requirements under chapter 67.19 14. 67.20 Sec. 41. Minnesota Statutes 1996, section 120.17, 67.21 subdivision 19, is amended to read: 67.22 Subd. 19. [PARENT ADVISORY COMMITTEES.] Provisions of 67.23 Minnesota Rules, part 3525.1100, regarding parent advisory 67.24 committeesshallapply to localschoolboards or cooperative 67.25 boards carrying out the provisions of this section. 67.26 Sec. 42. Minnesota Statutes 1996, section 120.1701, 67.27 subdivision 2, is amended to read: 67.28 Subd. 2. [DEFINITIONS.] For the purposes of this section 67.29 the following terms have themeaningmeanings given them. 67.30 (a) "Coordinate" means to provide ready access to a 67.31 community's services and resources to meet child and family 67.32 needs. 67.33 (b) "Core early intervention services" means services that 67.34 are available at no cost to children and families. These 67.35 services include: 67.36 (1) identification and referral; 68.1 (2) screening; 68.2 (3) evaluation; 68.3 (4) assessment; 68.4 (5) service coordination; 68.5 (6) special education and related services provided under 68.6 section 120.17, subdivision 3a, and United States Code, title 68.7 20, section 1401; and 68.8 (7) protection of parent and child rights by means of 68.9 procedural safeguards. 68.10 (c) "County board" means a county board established under 68.11 chapter 375. 68.12 (d) "Early intervention record" means any personally 68.13 identifiable information about a child or the child's family 68.14 that is generated by the early intervention system, and that 68.15 pertains to evaluation and assessment, development of an 68.16 individualized family service plan, and the delivery of early 68.17 intervention services. 68.18 (e) "Early intervention services" means services provided 68.19 in conformity with an individualized family service plan that 68.20 are designed to meet the special developmental needs of a child 68.21 eligible under Code of Federal Regulations, title 34, part 303, 68.22 and the needs of the child's family related to enhancing the 68.23 child's development and that are selected in collaboration with 68.24 the parent. These services include core early intervention 68.25 services and additional early intervention services listed in 68.26 subdivision 4 and services defined in Code of Federal 68.27 Regulations, title 34, section 303, et seq. 68.28 (f) "Early intervention system" means the total effort in 68.29 the state to meet the needs of eligible children and their 68.30 families, including, but not limited to: 68.31 (1) any public agency in the state that receives funds 68.32 under the Individuals with Disabilities Education Act, United 68.33 States Code, title 20, sections 1471 to 1485 (Part H, Public Law 68.34 Number 102-119); 68.35 (2) other state and local agencies administering programs 68.36 involved in the provision of early intervention services, 69.1 including, but not limited to: 69.2 (i) the Maternal and Child Health program under title V of 69.3 the Social Security Act, United States Code, title 42, sections 69.4 701 to 709; 69.5 (ii) the Individuals with Disabilities Education Act, 69.6 United States Code, title 20, sections 1411 to 1420 (Part B); 69.7 (iii) medical assistance under the Social Security Act, 69.8 United States Code, title 42, section 1396 et seq.; 69.9 (iv) the Developmental Disabilities Assistance and Bill of 69.10 Rights Act, United States Code, title 42, sections 6021 to 6030 69.11 (Part B); and 69.12 (v) the Head Start Act, United States Code, title 42, 69.13 sections 9831 to 9852; and 69.14 (3) services provided by private groups or third-party 69.15 payers in conformity with an individualized family service plan. 69.16 (g) "Eligibility for Part H" means eligibility for early 69.17 childhood special education under section 120.03 and Minnesota 69.18 Rules, part 3525.2335, subpart 1, items A and B. 69.19 (h) "Facilitate payment" means helping families access 69.20 necessary public or private assistance that provides payment for 69.21 services required to meet needs identified in a service plan, 69.22 individual education plan (IEP), individual service plan (ISP), 69.23 or individualized family service plan (IFSP), according to time 69.24 frames required by the plan. This may also include activities 69.25 to collect fees for services provided on a sliding fee basis, 69.26 where permitted by state law. 69.27 (i) "Individualized family service plan" or "IFSP" means a 69.28 written plan for providing services to a child and the child's 69.29 family. 69.30 (j) "Interagency child find systems" means activities 69.31 developed on an interagency basis with the involvement of 69.32 interagency early intervention committees and other relevant 69.33 community groups to actively seek out, identify, and refer 69.34 infants and young children with, or at risk of, disabilities, 69.35 and their families. 69.36 (k) "Local primary agency" means the agency designated 70.1 jointly by the school and county board under subdivision 4. 70.2 (l) "Parent" means the biological parent with parental 70.3 rights, adoptive parent, legal guardian, or surrogate parent. 70.4 (m) "Part H state plan" means the annual state plan 70.5 application approved by the federal government under the 70.6 Individuals with Disabilities Education Act, United States Code, 70.7 title 20, section 1471 et seq. (Part H, Public Law Number 70.8 102-119). 70.9 (n) "Pay for" means using federal, state, local, and 70.10 private dollars available for early intervention services. 70.11 (o) "Respite" means short-term, temporary care provided to 70.12 a child with a disability due to the temporary absence or need 70.13 for relief of the family member or members or primary caregiver,70.14 normally providing the care. 70.15 (p) "State lead agency" means the state agency receiving 70.16 federal funds under the Individuals with Disabilities Education 70.17 Act, United States Code, title 20, section 1471 et seq. (Part H, 70.18 Public Law Number 102-119). 70.19 (q) "Surrogate parent" means a person appointed by the 70.20 local education agency to assure that the rights of the child to 70.21 early intervention services are protected. 70.22 Sec. 43. Minnesota Statutes 1997 Supplement, section 70.23 120.1701, subdivision 3, is amended to read: 70.24 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 70.25 interagency coordinating council of at least 17, but not more 70.26 than 25 members is established, in compliance with Public Law 70.27 Number 102-119, section 682. The membersshallmust be 70.28 appointed by the governor. Council membersshallmust elect the 70.29 council chair. The representative of the commissionerof70.30children, families, and learningmay not serve as the chair. 70.31 The councilshallmust be composed of at least five parents, 70.32 including persons of color, of children with disabilities under 70.33 age 12, including at least three parents of a child with a 70.34 disability under age seven, five representatives of public or 70.35 private providers of services for children with disabilities 70.36 under age five, including a special education director, county 71.1 social service director, and a community health services or 71.2 public health nursing administrator, one member of the senate, 71.3 one member of the house of representatives, one representative 71.4 of teacher preparation programs in early childhood-special 71.5 education or other preparation programs in early childhood 71.6 intervention, at least one representative of advocacy 71.7 organizations for children with disabilities under age five, one 71.8 physician who cares for young children with special health care 71.9 needs, one representative each from the commissioners of 71.10 commerce, children, families, and learning, health, human 71.11 services, and economic security, and a representative from 71.12 Indian health services or a tribal council. Section 15.059, 71.13 subdivisions 2 to 5, apply to the council. The councilshall71.14 must meet at least quarterly. 71.15 The councilshallmust address methods of implementing the 71.16 state policy of developing and implementing comprehensive, 71.17 coordinated, multidisciplinary interagency programs of early 71.18 intervention services for children with disabilities and their 71.19 families. 71.20 The duties of the council include recommending policies to 71.21 ensure a comprehensive and coordinated system of all state and 71.22 local agency services for children under age five with 71.23 disabilities and their families. The policies must address how 71.24 to incorporate each agency's services into a unified state and 71.25 local system of multidisciplinary assessment practices, 71.26 individual intervention plans, comprehensive systems to find 71.27 children in need of services, methods to improve public 71.28 awareness, and assistance in determining the role of interagency 71.29 early intervention committees. 71.30Each yearBy June 1, the councilshallmust recommend to 71.31 the governor and the commissioners of children, families, and 71.32 learning, health, human services, commerce, and economic 71.33 security policies for a comprehensive and coordinated system. 71.34 Notwithstanding any other law to the contrary, the state 71.35 interagency coordinating councilshall expireexpires on June 71.36 30, 2001. 72.1 Sec. 44. Minnesota Statutes 1996, section 120.1701, 72.2 subdivision 4, is amended to read: 72.3 Subd. 4. [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 72.4 BOARDS.] (a) It is the joint responsibility of county boards and 72.5 school boards to coordinate, provide, and pay for appropriate 72.6 services, and to facilitate payment for services from public and 72.7 private sources. Appropriate services for children eligible 72.8 under section 120.03 must be determined in consultation with 72.9 parents, physicians, and other educational, medical, health, and 72.10 human services providers. The services provided must be in 72.11 conformity with an IFSP for each eligible infant and toddler 72.12 from birth through age two and its family, or an individual 72.13 education plan (IEP) or individual service plan (ISP) for each 72.14 eligible child ages three through four. 72.15 (b) Appropriate services include family education and 72.16 counseling, home visits, occupational and physical therapy, 72.17 speech pathology, audiology, psychological services, special 72.18 instruction, nursing, respite, nutrition, assistive technology, 72.19 transportation and related costs, social work, vision services, 72.20 case management including service coordination under subdivision 72.21 8, medical services for diagnostic and evaluation purposes, 72.22 early identification, and screening, assessment, and health 72.23 services necessary to enable children with disabilities to 72.24 benefit from early intervention services. 72.25 (c) School and county boards shall coordinate early 72.26 intervention services. In the absence of agreements established 72.27 according to subdivision 13, service responsibilities for 72.28 children birth through age two are as follows: 72.29 (1) school boardsare required tomust provide, pay for, 72.30 and facilitate payment for special education and related 72.31 services required under section 120.17, subdivision 2; 72.32 (2) county boardsare required tomust provide, pay for, 72.33 and facilitate payment for noneducational services of social 72.34 work, psychology, transportation and related costs, nursing, 72.35 respite, and nutrition services not required under clause (1). 72.36 (d) School and county boards may develop an interagency 73.1 agreement according to subdivision 13 to establish agency 73.2 responsibility that assuresthatearly intervention services are 73.3 coordinated, provided, paid for, and that payment is facilitated 73.4 from public and private sources. 73.5 (e) County and school boardsshallmust jointly determine 73.6 the primary agency in this cooperative effort and must notify 73.7 the commissioner of the state lead agency of their decision. 73.8 Sec. 45. Minnesota Statutes 1996, section 120.1701, 73.9 subdivision 5, is amended to read: 73.10 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 73.11 A school district, group of districts, or special education 73.12 cooperative, in cooperation with the health and human service 73.13 agencies located in the county or counties in which the district 73.14 or cooperative is located,shallmust establish an interagency 73.15 early intervention committee for children with disabilities 73.16 under age five and their families. Committeesshallmust 73.17 include representatives of local and regional health, education, 73.18 and county human service agencies;, county boards;, school 73.19 boards;, early childhood family education programs;, parents of 73.20 young children with disabilities under age 12;, current service 73.21 providers;, and may also include representatives from other 73.22 private or public agencies. The committeeshallmust elect a 73.23 chair from among its members andshallmust meet at least 73.24 quarterly. 73.25 (b) The committeeshallmust develop and implement 73.26 interagency policies and procedures concerning the following 73.27 ongoing duties: 73.28 (1) develop public awareness systems designed to inform 73.29 potential recipient families of available programs and services; 73.30 (2) implement interagency child find systems designed to 73.31 actively seek out, identify, and refer infants and young 73.32 children with, or at risk of, disabilities and their families; 73.33 (3) establish and evaluate the identification, referral, 73.34 child and family assessment systems, procedural safeguard 73.35 process, and community learning systems to recommend, where 73.36 necessary, alterations and improvements; 74.1 (4) assure the development of individualized family service 74.2 plans for all eligible infants and toddlers with disabilities 74.3 from birth through age two, and their families, and individual 74.4 education plans and individual service plans when necessary to 74.5 appropriately serve children with disabilities, age three and 74.6 older, and their families and recommend assignment of financial 74.7 responsibilities to the appropriate agencies. Agencies are74.8encouraged; 74.9 (5) encourage agencies to develop individual family service 74.10 plans for children with disabilities, age three and older; 74.11(5)(6) implement a process for assuring that services 74.12 involve cooperating agencies at all steps leading to 74.13 individualized programs; 74.14(6)(7) facilitate the development of a transitional plan 74.15 if a service provider is not recommended to continue to provide 74.16 services; 74.17(7)(8) identify the current services and funding being 74.18 provided within the community for children with disabilities 74.19 under age five and their families; 74.20(8)(9) develop a plan for the allocation and expenditure 74.21 of additional state and federal early intervention funds under 74.22 United States Code, title 20, section 1471 et seq. (Part H, 74.23 Public Law Number 102-119) and United States Code, title 20, 74.24 section 631, et seq. (Chapter I, Public Law Number 89-313); and 74.25(9)(10) develop a policy that is consistent with section 74.26 13.05, subdivision 9, and federal law to enable a member of an 74.27 interagency early intervention committee to allow another member 74.28 access to data classified as not public. 74.29 (c) The local committee shall also: 74.30 (1) participate in needs assessments and program planning 74.31 activities conducted by local social service, health and 74.32 education agencies for young children with disabilities and 74.33 their families; 74.34 (2) review and comment on the early intervention section of 74.35 the total special education system for the district, the county 74.36 social service plan, the section or sections of the community 75.1 health services plan that address needs of and service 75.2 activities targeted to children with special health care needs, 75.3 and the section of the maternal and child health special project 75.4 grants that address needs of and service activities targeted to 75.5 children with chronic illness and disabilities; and 75.6 (3) prepare a yearly summary on the progress of the 75.7 community in serving young children with disabilities, and their 75.8 families, including the expenditure of funds, the identification 75.9 of unmet service needs identified on the individual family 75.10 services plan and other individualized plans, and local, state, 75.11 and federal policies impeding the implementation of this section. 75.12 (d) The summary must be organized following a format 75.13 prescribed by the commissioner of the state lead agency and must 75.14 be submitted to each of the local agencies and to the state 75.15 interagency coordinating council by October 1 of each year. 75.16 The departments of children, families, and learning, 75.17 health, and human services must provide assistance to the local 75.18 agencies in developing cooperative plans for providing services. 75.19 Sec. 46. Minnesota Statutes 1996, section 120.1701, 75.20 subdivision 6, is amended to read: 75.21 Subd. 6. [LOCAL PRIMARY AGENCY.] (a) The local primary 75.22 agencyshallmust: 75.23 (1) facilitate the development of annual fund requests that 75.24 identify arrangements with other local and regional agencies 75.25 providing services as part of the state's early childhood 75.26 intervention system and that result in service availability on a 75.27 year-round basis, as necessary; 75.28 (2) administer funds received through the annual fund 75.29 request; 75.30 (3) provide oversight for data collection efforts; 75.31 (4) facilitate completion of interagency early intervention 75.32 committee duties as indicated in subdivision 5; 75.33 (5) request mediation from the state lead agency, if 75.34 necessary; 75.35 (6) request assistance from the state lead agency when 75.36 disputes between agencies cannot be resolved within 20 calendar 76.1 days; and 76.2 (7) receive written requests from parents for matters that 76.3 may be resolved through due process hearings. 76.4 (b) When the local primary agency is not an education 76.5 agency, resources distributed under the early intervention fund 76.6shallmust be transferred from a local educational agency to a 76.7 noneducation agency using a state provided contract. A local 76.8 primary agency may budget for indirect costs at an amount not to 76.9 exceed five percent of the amount allocated from the early 76.10 intervention fund. 76.11 Sec. 47. Minnesota Statutes 1996, section 120.1701, 76.12 subdivision 7, is amended to read: 76.13 Subd. 7. [INDIVIDUALIZED FAMILY SERVICE PLAN.] (a) A team 76.14 must participate in IFSP meetings to develop theindividualized76.15family service planIFSP. The team shall include: 76.16 (1) a parent or parents of the child; 76.17 (2) other family members, as requested by the parent, if 76.18 feasible to do so; 76.19 (3) an advocate or person outside of the family, if the 76.20 parent requests that the person participate; 76.21 (4) the service coordinator who has been working with the 76.22 family since the initial referral, or who has been designated by 76.23 the public agency to be responsible for implementation of the 76.24 IFSP; and 76.25 (5) a person or persons involved in conducting evaluations 76.26 and assessments. 76.27 (b) The IFSP must include: 76.28 (1) information about the child's developmental status; 76.29 (2) family information, with the consent of the family; 76.30 (3) major outcomes expected to be achieved by the child and 76.31 the family,that include the criteria, procedures, and 76.32 timelines; 76.33 (4) specific early intervention services necessary to meet 76.34 the unique needs of the child and the family to achieve the 76.35 outcomes; 76.36 (5) payment arrangements, if any; 77.1 (6) medical and other services that the child needs, but 77.2 that are not required under the Individual with Disabilities 77.3 Education Act, United States Code, title 20, section 1471 et 77.4 seq. (Part H, Public Law Number 102-119) including funding 77.5 sources to be used in paying for those services and the steps 77.6 that will be taken to secure those services through public or 77.7 private sources; 77.8 (7) dates and duration of early intervention services; 77.9 (8) name of the service coordinator; 77.10 (9) steps to be taken to support a child's transition from 77.11 early intervention services to other appropriate services; and 77.12 (10) signature of the parent and authorized signatures of 77.13 the agencies responsible for providing, paying for, or 77.14 facilitating payment, or any combination of these, for early 77.15 intervention services. 77.16 Sec. 48. Minnesota Statutes 1996, section 120.1701, 77.17 subdivision 8, is amended to read: 77.18 Subd. 8. [SERVICE COORDINATION.] (a) The team developing 77.19 theindividualized family service planIFSP under subdivision 7 77.20shallmust select a service coordinator to carry out service 77.21 coordination activities on an interagency basis. Service 77.22 coordination must actively promote a family's capacity and 77.23 competency to identify, obtain, coordinate, monitor, and 77.24 evaluate resources and services to meet the family's needs. 77.25 Service coordination activities include: 77.26 (1) coordinating the performance of evaluations and 77.27 assessments; 77.28 (2) facilitating and participating in the development, 77.29 review, and evaluation of individualized family service plans; 77.30 (3) assisting families in identifying available service 77.31 providers; 77.32 (4) coordinating and monitoring the delivery of available 77.33 services; 77.34 (5) informing families of the availability of advocacy 77.35 services; 77.36 (6) coordinating with medical, health, and other service 78.1 providers; 78.2 (7) facilitating the development of a transition plan at 78.3 least six monthsprior tobefore the time the child is no longer 78.4 eligible for early intervention services, if appropriate; 78.5 (8) managing the early intervention record and submitting 78.6 additional information to the local primary agency at the time 78.7 of periodic review and annual evaluations; and 78.8 (9) notifying a local primary agency when disputes between 78.9 agencies impact service delivery required by anindividualized78.10family service planIFSP. 78.11 (b) A service coordinator must be knowledgeable about 78.12 children and families receiving services under this section, 78.13 requirements of state and federal law, and services available in 78.14 the interagency early childhood intervention system. 78.15 Sec. 49. Minnesota Statutes 1996, section 120.1701, 78.16 subdivision 8a, is amended to read: 78.17 Subd. 8a. [EARLY INTERVENTION RESPITE.] The provision of 78.18 respite services for an eligible child and familyshallmust be 78.19 determined in the context of the IFSP development based on the 78.20 individual needs of the child and family and with consideration 78.21 given to the following criteria: 78.22 (1) severity of the child's disability and needs; 78.23 (2) potential risk of out-of-home placement for the child 78.24 if respite services are not provided; 78.25 (3) parental lack of access to informal support systems, 78.26 including, but not limited to, extended family, supportive 78.27 friends, and community supports; 78.28 (4) presence of factors known to increase family stress, 78.29 including, but not limited to, family size and presence of 78.30 another child or family member with a disability; 78.31 (5) the availability of other public services provided to 78.32 the familywhichthat assist the parent or primary caretaker in 78.33 obtaining relief from caretaking responsibilities; and 78.34 (6) the perceived and expressed level of need for respite 78.35 services by the parent. 78.36 Counties are encouraged to make a variety of respite 79.1 service models available, which may include in or out-of-home 79.2 respite, family reimbursement programs, and parent-to-parent 79.3 respite projects. 79.4 Sec. 50. Minnesota Statutes 1996, section 120.1701, 79.5 subdivision 9, is amended to read: 79.6 Subd. 9. [EARLY INTERVENTION FLOW-THROUGH DOLLARS.] (a) 79.7 The state lead agencyshallmust administer the early 79.8 intervention accountwhichthat consists of federal 79.9 allocations. The Part H state planshallmust state the amount 79.10 of federal resources in the early intervention account available 79.11 for use by local agencies. The state lead agencyshallmust 79.12 distribute the funds to the local primary agency based on a 79.13 December 1 count of the prior year of Part H eligible children 79.14 for the following purposes: 79.15 (1) as provided in Code of Federal Regulations, title 34, 79.16 part 303.425, to arrange for payment for early intervention 79.17 services not elsewhere available, or to pay for services during 79.18 the pendency of a conflict procedure, including mediation, 79.19 complaints, due process hearings, and interagency disputes; and 79.20 (2) to support interagency child find system activities. 79.21 (b) The priority purpose for this fund is paragraph (a), 79.22 clause (1). The local primary agencyshallmust reallocate 79.23 resources from the early intervention fund as necessary in order 79.24 to meet this priority. 79.25 (c) Nothing in this subdivisionshall limitlimits the 79.26 state lead agency's authority to allocate discretionary federal 79.27 funds for any purpose consistent with the Individuals with 79.28 Disabilities Education Act, United States Code, title 20, 79.29 sections 1471 to 1485 (Part H, Public Law Number 102-119) and 79.30 regulations adopted under United States Code, title 20, sections 79.31 1471 to 1485. 79.32 (d) Each county board must continue to spend for early 79.33 intervention services under subdivision 2, paragraph (e), an 79.34 amount equal to the total county expenditure during the period 79.35 from January 1, 1993, to December 31, 1993, for these same 79.36 services. The commissioner of human services, in consultation 80.1 with the commissioner of health and the association of Minnesota 80.2 counties,shallmust establish a process for determining base 80.3 year 1993 expenditures. 80.4 (e) County boards that have submitted base year 1993 80.5 expenditures as required under paragraph (d) are not required to 80.6 pay any increased cost over the base year 1993 for early 80.7 intervention services resulting from implementing the early 80.8 intervention system. Increased costs to county boards may be 80.9 paid for with early intervention flow-through dollars. 80.10 (f) School boards are not required to pay for services 80.11 defined in subdivision 4, paragraph (c), clause (2). 80.12 Sec. 51. Minnesota Statutes 1996, section 120.1701, 80.13 subdivision 10, is amended to read: 80.14 Subd. 10. [PAYMENT FOR SERVICES.] Core early intervention 80.15 servicesshallmust be provided at public expense with no cost 80.16 to parents. Parentsshallmust be requested to assist in the 80.17 cost of additional early intervention services by using 80.18 third-party payment sources and applying for available 80.19 resources. Payment structures permitted under state lawshall80.20 must be used to pay for additional early intervention services. 80.21 Parental financial responsibilityshallmust be clearly defined 80.22 in theindividualized family service planIFSP. A parent's 80.23 inability to payshallmust not prohibit a child from receiving 80.24 needed early intervention services. 80.25 Sec. 52. Minnesota Statutes 1996, section 120.1701, 80.26 subdivision 11, is amended to read: 80.27 Subd. 11. [PAYOR OF LAST RESORT.] (a) For fiscal years 80.28 1995 and 1996, the state lead agencyshallmust establish a 80.29 reserve account from federal sources to pay for services in 80.30 dispute or to pay for early intervention services when local 80.31 agencies have exhausted all other public and private funds 80.32 available for Part H eligible children. 80.33 (b) The lead agencyshallmust report to the legislature by 80.34 January 1, 1996, regarding county board expenditures for early 80.35 intervention services and the continuing need and funding of the 80.36 reserve account. 81.1 Sec. 53. Minnesota Statutes 1996, section 120.1701, 81.2 subdivision 12, is amended to read: 81.3 Subd. 12. [MAINTENANCE OF EFFORT.] A county human services 81.4 agency or county boardshallmust continue to provide services 81.5 set forth in their county social service agency plan. The 81.6 county human services agency or county boardshallmust serve 81.7 children with disabilities under age five,and their families, 81.8 or as specified in theindividualized family service planIFSP 81.9 for children with disabilities, birth through age two, or the 81.10 individual service plan of each child. Special instruction and 81.11 related services for which a child with a disability is eligible 81.12 under this section are the responsibility of the local school 81.13 board. It is the joint responsibility of county boards and 81.14 school boards to coordinate, provide, and pay for all 81.15 appropriate services required in subdivision 11b and to 81.16 facilitate payment for services from public and private sources. 81.17 Sec. 54. Minnesota Statutes 1996, section 120.1701, 81.18 subdivision 15, is amended to read: 81.19 Subd. 15. [BENEFITS COORDINATION.] The department of 81.20 healthshallmust provide technical assistance in a timely 81.21 manner to service coordinators, parents of children with 81.22 disabilities, and agencies in situations requiring the 81.23 coordination of health insurance benefits, or the identification 81.24 of third-party payor responsibilities to provide necessary 81.25 health benefits. 81.26 Sec. 55. Minnesota Statutes 1996, section 120.1701, 81.27 subdivision 17, is amended to read: 81.28 Subd. 17. [MEDIATION PROCEDURE.] The commissioner of the 81.29 state lead agencyshallmust use federal funds to provide 81.30 mediation for the activities in paragraphs (a) and (b). 81.31 (a) A parent may resolve a dispute regarding issues in 81.32 subdivision 16, paragraph (b), clause (5), through mediation. If 81.33 the parent chooses mediation, all public agencies involved in 81.34 the disputeshallmust participate in the mediation process. 81.35 The parent and the public agencies must complete the mediation 81.36 process within 20 calendar days of the date the commissioner 82.1 receives a parent's written request for mediation. The 82.2 mediation process may not be used to delay a parent's right to a 82.3 due process hearing. The resolution of the mediation is not 82.4 binding on any party. 82.5 (b) The local primary agency may request mediation on 82.6 behalf of involved agencies when there are disputes between 82.7 agencies regarding responsibilities to coordinate, provide, pay 82.8 for, or facilitate payment for early intervention services. 82.9 Sec. 56. Minnesota Statutes 1996, section 120.1701, 82.10 subdivision 19, is amended to read: 82.11 Subd. 19. [INTERAGENCY DISPUTE PROCEDURE.] (a) A dispute 82.12 between a school board and a county board that is responsible 82.13 for implementing the provisions of subdivision 4 regarding early 82.14 identification, child and family assessment, service 82.15 coordination, and IFSP development and implementationshallmust 82.16 be resolved according to this subdivision when the dispute 82.17 involves services provided to children and families eligible 82.18 under the Individuals with Disabilities Education Act, United 82.19 States Code, title 20, section 1471 et seq. (Part H, Public Law 82.20 Number 102-119). 82.21 (b) A dispute occurs when the school board and county board 82.22 are unable to agree as to who is responsible to coordinate, 82.23 provide, pay for, or facilitate payment for services from public 82.24 and private sources. 82.25 (c) Written and signed disputesshallmust be filed with 82.26 the local primary agency. 82.27 (d) The local primary agencyshall have attemptedmust 82.28 attempt to resolve the matter with the involved school board and 82.29 county board and may request mediation from the commissioner of 82.30 the state lead agency for this purpose. 82.31 (e) When interagency disputes have not been resolved within 82.32 30 calendar days, the local primary agencyshallmust request 82.33 the commissioner of the state lead agency to review the matter 82.34 with the commissioners of health and human services and make a 82.35 decision. The commissionershallmust provide a consistent 82.36 process for reviewing those procedures. The commissioners' 83.1 decision is binding subject to the right of an aggrieved party 83.2 to appeal to the state court of appeals. 83.3 (f) The local primary agencyshallmust ensure that 83.4 eligible children and their families receive early intervention 83.5 services during resolution of a dispute. While a local dispute 83.6 is pending, the local primary agencyshallmust either assign 83.7 financial responsibility to an agency or pay for the service 83.8 from the early intervention account under subdivision 9. If in 83.9 resolving the dispute, it is determined that the assignment of 83.10 financial responsibility was inappropriate, the responsibility 83.11 for payment must be reassigned to the appropriate agency and the 83.12 responsible agencyshallmust make arrangements for reimbursing 83.13 any expenditures incurred by the agency originally assigned 83.14 financial responsibility. 83.15 Sec. 57. Minnesota Statutes 1996, section 120.1701, 83.16 subdivision 20, is amended to read: 83.17 Subd. 20. [DUE PROCESS HEARINGS.] The procedures for due 83.18 process hearings and appealsshallmust be the same as those in 83.19 section 120.17, subdivision 3b. The responsibility for payment 83.20 of costs and conducting due process hearings and appeals shall 83.21 be allocated to the appropriate agency in accordance with 83.22 subdivisions 5, 13, and 16. 83.23 Sec. 58. Minnesota Statutes 1996, section 120.1701, 83.24 subdivision 21, is amended to read: 83.25 Subd. 21. [DATA COLLECTION.] By July 1, 1994, the 83.26 departments of children, families, and learning, health, and 83.27 human servicesshallmust develop a plan to collect data about 83.28 which early intervention services are being provided to children 83.29 and families eligible under the Individuals with Disabilities 83.30 Education Act, United States Code, title 20, section 1471 et 83.31 seq. (Part H, Public Law Number 102-119) and sources of payment 83.32 for those services. 83.33 Sec. 59. Minnesota Statutes 1996, section 120.1701, 83.34 subdivision 22, is amended to read: 83.35 Subd. 22. [STATE INTERAGENCY AGREEMENT.] (a) The 83.36 commissioners of the departments of children, families, and 84.1 learning, health, and human servicesshallmust enter into an 84.2 agreement to implement this section and Part H, Public Law 84.3 Number 102-119, and as required by Code of Federal Regulations, 84.4 title 34, section 303.523, to promote the development and 84.5 implementation of interagency, coordinated, multidisciplinary 84.6 state and local early childhood intervention service systems for 84.7 serving eligible young children with disabilities, birth through 84.8 age two, and their families. The agreement must be reviewed 84.9 annually. 84.10 (b) The state interagency agreementshallmust outline at a 84.11 minimum the conditions, procedures, purposes, and 84.12 responsibilities of the participating state and local agencies 84.13 for the following: 84.14 (1) membership, roles, and responsibilities of a state 84.15 interagency committee for the oversight of priorities and budget 84.16 allocations under Part H, Public Law Number 102-119, and other 84.17 state allocations for this program; 84.18 (2) child find; 84.19 (3) establishment of local interagency agreements; 84.20 (4) review by a state interagency committee of the 84.21 allocation of additional state and federal early intervention 84.22 funds by local agencies; 84.23 (5) fiscal responsibilities of the state and local 84.24 agencies; 84.25 (6) intraagency and interagency dispute resolution; 84.26 (7) payor of last resort; 84.27 (8) maintenance of effort; 84.28 (9) procedural safeguards, including mediation; 84.29 (10) complaint resolution; 84.30 (11) quality assurance; 84.31 (12) data collection; 84.32 (13) an annual summary to the state interagency 84.33 coordinating council regarding conflict resolution activities 84.34 including disputes, due process hearings, and complaints; and 84.35 (14) other components of the state and local early 84.36 intervention system consistent with Public Law Number 102-119. 85.1 Written materials must be developed for parents, IEIC's, and 85.2 local service providers that describe procedures developed under 85.3 this section as required by Code of Federal Regulations, title 85.4 34, section 303. 85.5 Sec. 60. Minnesota Statutes 1996, section 120.172, 85.6 subdivision 2, is amended to read: 85.7 Subd. 2. [STATE PLAN.] The state boardof educationshall 85.8 not adopt any provision in the state plan for special education 85.9whichthat reduces the opportunities for parents and school 85.10 districts to resolve their differences through conciliation. 85.11 Sec. 61. Minnesota Statutes 1996, section 120.173, 85.12 subdivision 1, is amended to read: 85.13 Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner 85.14of children, families, and learningmay approve applications 85.15 fromschooldistricts to provide prevention services as an 85.16 alternative to special education and other compensatory programs 85.17 during three school years. A district with an approved program 85.18 may provide instruction and services in a regular education 85.19 classroom to eligible pupils. Pupils eligible to participate in 85.20 the program are low-performing pupils who, based on documented 85.21 experience, the professional judgment of a classroom teacher, or 85.22 a team of licensed professionals, would eventually qualify for 85.23 special education instruction or related services under section 85.24 120.17 if the intervention services authorized by this section 85.25 were unavailable. Pupils may be provided services during 85.26 extended school days and throughout the entire year. 85.27 Sec. 62. Minnesota Statutes 1996, section 120.173, 85.28 subdivision 3, is amended to read: 85.29 Subd. 3. [EVALUATION.] The applicationshallmust also set 85.30 forth the review and evaluation procedures to be used by the 85.31 district addressing at least the following: 85.32 (1) the number of pupils with and without a disability 85.33 served; 85.34 (2) the impact of the program on the academic progress and 85.35 social adjustment of the pupils; 85.36 (3) the level of satisfaction teachers, parents, and pupils 86.1 have with the program; 86.2 (4) the effect of the program on the number of referrals 86.3 for special education, federal chapter 1, and other programs; 86.4 (5) the amount of time spent by teachers on procedural 86.5 activities; 86.6 (6) the increased amount of time the pupil is in a regular 86.7 education classroom; and 86.8 (7) cost implications. 86.9 Sec. 63. Minnesota Statutes 1996, section 120.173, 86.10 subdivision 4, is amended to read: 86.11 Subd. 4. [REVIEW FOR EXCESS EXPENDITURES.] The 86.12 commissionershallmust review each application to determine 86.13 whether the personnel, equipment, supplies, residential aid, and 86.14 summer school are necessary to meet the district's obligation to 86.15 provide special instruction and services to children with a 86.16 disability according to section 120.17. The commissionershall86.17 may not approve revenue for any expenditures determined to be 86.18 unnecessary. 86.19 Sec. 64. Minnesota Statutes 1996, section 120.173, 86.20 subdivision 6, is amended to read: 86.21 Subd. 6. [PUPIL RIGHTS.] A pupil participating in the 86.22 program must be individually evaluated according to the pupil's 86.23 actual abilities and needs. A pupil who is eligible for 86.24 services under section 120.17 is entitled to procedural 86.25 protections provided under Public Law Number 94-142 in any 86.26 matter that affects the identification, evaluation, placement, 86.27 or change in placement of a pupil. The district must ensure the 86.28 protection of a pupil's civil rights, provide equal educational 86.29 opportunities, and prohibit discrimination. Failure to comply 86.30 with this subdivision will at least cause a district to become 86.31 ineligible to participate in the program. Notwithstanding rules 86.32 of the state boardof education, a pupil's rights under this 86.33 section cannot be waived by the state board. 86.34 Sec. 65. Minnesota Statutes 1997 Supplement, section 86.35 120.181, is amended to read: 86.36 120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 87.1 EDUCATION AND TRANSPORTATION.] 87.2 The responsibility for providing instruction and 87.3 transportation for a pupil without a disability who has a 87.4 short-term or temporary physical or emotional illness or 87.5 disability, as determined by the standards of the state board, 87.6 and who is temporarily placed for care and treatment for that 87.7 illness or disability,shallmust be determined as provided in 87.8 this section. 87.9 (a) The school district of residence of the pupilshall be87.10 is the district in which the pupil's parent or guardian resides,87.11 orwhenthe district designated by the commissioner if neither 87.12the pupil'sparent nor guardianresidesis living within the 87.13 state and tuition has been denied, the district designated by87.14the commissioner of children, families, and learning. 87.15 (b)Prior toBefore the placement of a pupil for care and 87.16 treatment, the district of residenceshallmust be notified and 87.17 provided an opportunity to participate in the placement 87.18 decision. When an immediate emergency placement is necessary 87.19 and time does not permit resident district participation in the 87.20 placement decision, the district in which the pupil is 87.21 temporarily placed, if different from the district of residence, 87.22shallmust notify the district of residence of the emergency 87.23 placement within 15 days of the placement. 87.24 (c) When a pupil without a disability is temporarily placed 87.25 for care and treatment in a day program and the pupil continues 87.26 to live within the district of residence during the care and 87.27 treatment, the district of residenceshallmust provide 87.28 instruction and necessary transportation for the pupil. The 87.29 district may provide the instruction at a school within the 87.30 district of residence, at the pupil's residence, or in the case 87.31 of a placement outside of the resident district, in the district 87.32 in which the day treatment program is located by paying tuition 87.33 to that district. The district of placement may contract with a 87.34 facility to provide instruction by teachers licensed by the 87.35 state board of teaching. 87.36 (d) When a pupil without a disability is temporarily placed 88.1 in a residential program for care and treatment, the district in 88.2 which the pupil is placedshallmust provide instruction for the 88.3 pupil and necessary transportation while the pupil is receiving 88.4 instruction, and in the case of a placement outside of the 88.5 district of residence, the nonresident districtshallmust bill 88.6 the district of residence for the actual cost of providing the 88.7 instruction for the regular school year and for summer school, 88.8 excluding transportation costs. When a pupil without a 88.9 disability is temporarily placed in a residential program 88.10 outside the district of residence, the administrator of the 88.11 court placing the pupilshallmust send timely written notice of 88.12 the placement to the district of residence. The district of 88.13 placement may contract with a residential facility to provide 88.14 instruction by teachers licensed by the state board of teaching. 88.15 (e) The district of residenceshallmust include the pupil 88.16 in its residence count of pupil units and pay tuition as 88.17 provided in section 124.18 to the district providing the 88.18 instruction. Transportation costsshallmust be paid by the 88.19 district providing the transportation and the stateshallmust 88.20 pay transportation aid to that district. For purposes of 88.21 computing state transportation aid, pupils governed by this 88.22 subdivisionshallmust be included in the disabled 88.23 transportation category. 88.24 Sec. 66. Minnesota Statutes 1996, section 120.1811, is 88.25 amended to read: 88.26 120.1811 [RESIDENTIAL TREATMENT FACILITIES; EDUCATION.] 88.27 Subdivision 1. [EDUCATIONAL SCREENING.] Secure and 88.28 nonsecure residential treatment facilities licensed by the 88.29 department of human services or the department of corrections 88.30shallmust screen each juvenile who is held in a facility for at 88.31 least 72 hours, excluding weekends or holidays, using an 88.32 educational screening tool identified by the departmentof88.33children, families, and learning, unless the facility determines 88.34 that the juvenile has a current individual education plan and 88.35 obtains a copy of it. The departmentof children, families, and88.36learning shallmust develop or identify an education screening 89.1 tool for use in residential facilities. The tool must include a 89.2 life skills development component. 89.3 Subd. 2. [RULEMAKING.] The state boardof educationmay, 89.4 in consultation with the commissioners of corrections and human 89.5 services, make or amend rules relating to education programs in 89.6 residential treatment facilities, if necessary, to implement 89.7 this section. 89.8 Sec. 67. Minnesota Statutes 1996, section 120.182, is 89.9 amended to read: 89.10 120.182 [SPECIAL EDUCATION DIRECTOR.] 89.11 The authority for the selection and employment of the 89.12 director of a special education cooperative established pursuant 89.13 to section 120.17 or 471.59shall beis vested in the governing 89.14 board of the cooperative. Notwithstanding the provisions of 89.15 section 125.12, subdivision 6a or 6b, no individual shall have a 89.16 right to employment as a director based on seniority or order of 89.17 employment by the cooperative. 89.18 Sec. 68. Minnesota Statutes 1996, section 120.183, is 89.19 amended to read: 89.20 120.183 [INTERAGENCY OFFICE ON TRANSITION SERVICES.] 89.21 The commissionerof children, families, and learning shall89.22 must establish an interagency office on transition services to: 89.23 (1) gather and coordinate data on transition services for 89.24 secondary age pupils with a disability; 89.25 (2) provide information, consultation, and technical 89.26 assistance to state and local agencies involved in the delivery 89.27 of services to pupils with a disability in transition from 89.28 secondary school programs to employment and post-secondary 89.29 training programs; 89.30 (3) assist agencies in establishing local interagency 89.31 agreements to assure the necessary services for efficient and 89.32 appropriate transition from school to work or post-secondary 89.33 training programs; and 89.34 (4) assist regions and local areas in planning interagency 89.35 in-service training to develop and improve transition services. 89.36 Sec. 69. Minnesota Statutes 1996, section 120.185, is 90.1 amended to read: 90.2 120.185 [ACCOMMODATING STUDENTS WITH DISABILITIES.] 90.3 A school orschooldistrictshallmust provide a student 90.4 who is an "individual with a disability" under Section 504 of 90.5 the Rehabilitation Act of 1973, United States Code, title 29, 90.6 section 794, or under the Americans with Disabilities Act, 90.7 Public Law Number 101-336, with reasonable accommodations or 90.8 modifications in programs. 90.9 Sec. 70. Minnesota Statutes 1996, section 120.188, is 90.10 amended to read: 90.11 120.188 [PURCHASING GUIDELINES.] 90.12 Subdivision 1. [RIGHTS OFSCHOOLDISTRICTS TO PURCHASE 90.13 SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 90.14 disability exits aschooldistrict and enters a newschool90.15 district, the child's newschooldistrict may purchase any 90.16 assistive technology devices that the child's formerschool90.17 district has purchased on the child's behalf. The child's new 90.18schooldistrict must notify, in writing, the child's former 90.19schooldistrict of the intent to purchase the device. The 90.20 child's newschooldistrict must complete a purchase agreement 90.21 according to section 120.1701, subdivision 10. The child's 90.22 formerschooldistrict must respond, in writing, to the request 90.23 to purchase within 30 days. 90.24 (b)SchoolDistricts may decline to sell a device if they 90.25 can demonstrate the technology is a general use device or can be 90.26 modified for use by other students. 90.27 Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The child's 90.28 formerschooldistrictshallis notbeliable for any 90.29 nonconformities in the equipment after it is purchased by the 90.30 child's newschooldistrict, or for injuries arising out of the 90.31 use of the assistive technology device. This section does not 90.32 foreclose the child's right to bring suit against the 90.33 manufacturer, assistive device lessor, or assistive device 90.34 dealer for nonconformities in or injuries arising out of the use 90.35 of the assistive technology device. 90.36 Subd. 3. [THIRD-PARTY PAYORS.] Nothing contained in this 91.1 sectionshallmay be construed as decreasing the obligation of 91.2 an insurance company or other third-party payor to provide 91.3 coverage for assistive technology. 91.4 Sec. 71. Minnesota Statutes 1996, section 120.189, is 91.5 amended to read: 91.6 120.189 [INTERAGENCY AGREEMENT TO PURCHASE USED ASSISTIVE 91.7 TECHNOLOGY DEVICES.] 91.8 Subdivision 1. [OPTION TO PURCHASE BY DEPARTMENT OF 91.9 ECONOMIC SECURITY.] (a) When a child with a disability 91.10 transitions into a work environment or enrolls in a 91.11 post-secondary course or program, the department of economic 91.12 security may purchase any assistive technology device that the 91.13 child's formerschooldistrict purchased on the child's behalf. 91.14 (b) The department of economic security may purchase an 91.15 assistive technology device initially purchased by aschool91.16 district for a child who is currently a recipient of 91.17 rehabilitation services and who needs the identical assistive 91.18 technology device as stated on the recipient's individual 91.19 written rehabilitation plan. The purchase may be made not more 91.20 than three monthsprior tobefore the childexitingexits the 91.21schooldistrict. 91.22 Subd. 2. [LIABILITY FOR USED EQUIPMENT.] The department of 91.23 economic security and the department of children, families, and 91.24 learningshallare notbeliable for any nonconformities in the 91.25 equipment after it is purchased by the department of economic 91.26 security, or for injuries arising out of the use of the 91.27 assistive technology device. This section does not foreclose 91.28 the child's right to bring suit against the manufacturer, 91.29 assistive device lessor, or assistive device dealer for 91.30 nonconformities in or injuries arising out of the use of the 91.31 assistive technology device. 91.32 Subd. 3. [THIRD-PARTY PAYOR.] Nothing contained in this 91.33 sectionshallmay be construed as decreasing the obligation of 91.34 an insurance company or other third-party payor to provide 91.35 coverage for assistive technology. 91.36 Sec. 72. Minnesota Statutes 1996, section 120.190, is 92.1 amended to read: 92.2 120.190 [PURCHASE AGREEMENT; PRICE FORMULA.] 92.3 The commissionershallmust develop guidelines for the sale 92.4 of used assistive technology including a purchase agreement, a 92.5 formula for establishing the sale price, and other terms and 92.6 conditions of the sale. 92.7 Sec. 73. Minnesota Statutes 1996, section 120.80, is 92.8 amended to read: 92.9 120.80 [EARLY GRADUATION.] 92.10 Subdivision 1. Notwithstanding any law to the contrary, 92.11 any secondary school student who has completed all required 92.12 courses may, with the approval of the student, the student's 92.13 parent or guardian, and local school officials, graduateprior92.14tobefore the completion of the school year. General education 92.15 revenue attributable to the student must be paid as though the 92.16 student was in attendance for the entire year. 92.17 Sec. 74. Minnesota Statutes 1996, section 123.3513, is 92.18 amended to read: 92.19 123.3513 [ADVANCED ACADEMIC CREDIT.] 92.20 Aschooldistrictshallmust grant academic credit to a 92.21 pupil attending an accelerated or advanced academic course 92.22 offered by a higher education institution or a nonprofit public 92.23 agency other than the district, if the pupil successfully 92.24 completes the course attended and passes an examination approved 92.25 by the district. If no comparable course is offered by the 92.26 district, the commissioner shall determine the number of credits 92.27 which shall be granted to a pupil who successfully completes and 92.28 passes the course. If a comparable course is offered by the 92.29 district, theschoolboardshallmust grant a comparable number 92.30 of credits to the pupil. If there is a dispute between the 92.31 district and the pupil regarding the number of credits granted 92.32 for a particular course, the pupil may appeal the school board's 92.33 decision to the commissioner. The commissioner's decision 92.34 regarding the number of credits shall be final. 92.35 The credits granted to a pupil shall be counted toward the 92.36 graduation requirements and subject area requirements of the 93.1schooldistrict. Evidence of successful completion of each 93.2 class and credits granted shall be included in the pupil's 93.3 secondary school record. 93.4 Sec. 75. Minnesota Statutes 1996, section 123.3514, 93.5 subdivision 3, is amended to read: 93.6 Subd. 3. [DEFINITIONS.] For purposes of this section,an93.7 the following terms have the meanings given to them. 93.8 (a) "Eligible institution" means a Minnesota public 93.9 post-secondary institution, a private, nonprofit two-year trade 93.10 and technical school granting associate degrees, an 93.11 opportunities industrialization center accredited by the North 93.12 Central Association of Colleges and Schools, or a private, 93.13 residential, two-year or four-year, liberal arts, 93.14 degree-granting college or university located in Minnesota. 93.15 "Course" means a course or program. 93.16 (b) "Course" means a course or program. 93.17 Sec. 76. Minnesota Statutes 1997 Supplement, section 93.18 123.3514, subdivision 4, is amended to read: 93.19 Subd. 4. [AUTHORIZATION; NOTIFICATION.] Notwithstanding 93.20 any other law to the contrary, an 11th or 12th grade pupil 93.21 enrolled in a school or an American Indian-controlled tribal 93.22 contract or grant school eligible for aid under section 124.86, 93.23 except a foreign exchange pupil enrolled in a district under a 93.24 cultural exchange program, may apply to an eligible institution, 93.25 as defined in subdivision 3, to enroll in nonsectarian courses 93.26 offered by that post-secondary institution. If an institution 93.27 accepts a secondary pupil for enrollment under this section, the 93.28 institution shall send written notice to the pupil, the pupil's 93.29 school or school district, and the commissionerof children,93.30families, and learningwithin ten days of acceptance. The 93.31 noticeshallmust indicate the course and hours of enrollment of 93.32 that pupil. If the pupil enrolls in a course for post-secondary 93.33 credit, the institutionshallmust notify the pupil about 93.34 payment in the customary manner used by the institution. 93.35 Sec. 77. Minnesota Statutes 1997 Supplement, section 93.36 123.3514, subdivision 4a, is amended to read: 94.1 Subd. 4a. [COUNSELING.] To the extent possible, the school 94.2 or school districtshallmust provide counseling services to 94.3 pupils and their parents or guardian before the pupils enroll in 94.4 courses under this section to ensure that the pupils and their 94.5 parents or guardian are fully aware of the risks and possible 94.6 consequences of enrolling in post-secondary courses. The school 94.7 or school districtshallmust provide information on the program 94.8 including who may enroll, what institutions and courses are 94.9 eligible for participation, the decision-making process for 94.10 granting academic credits, financial arrangements for tuition, 94.11 books and materials, eligibility criteria for transportation 94.12 aid, available support services, the need to arrange an 94.13 appropriate schedule, consequences of failing or not completing 94.14 a course in which the pupil enrolls, the effect of enrolling in 94.15 this program on the pupil's ability to complete the required 94.16 high school graduation requirements, and the academic and social 94.17 responsibilities that must be assumed by the pupils and their 94.18 parents or guardian. The person providing counseling shall 94.19 encourage pupils and their parents or guardian to also use 94.20 available counseling services at the post-secondary institutions 94.21 before the quarter or semester of enrollment to ensure that 94.22 anticipated plans are appropriate. 94.23 Prior to enrolling in a course, the pupil and the pupil's 94.24 parents or guardian must sign a form that must be provided by 94.25 the school or school district and may be obtained from a 94.26 post-secondary institution stating that they have received the 94.27 information specified in this subdivision and that they 94.28 understand the responsibilities that must be assumed in 94.29 enrolling in this program. The departmentof children,94.30families, and learning shallmust, upon request, provide 94.31 technical assistance to a school or school district in 94.32 developing appropriate forms and counseling guidelines. 94.33 Sec. 78. Minnesota Statutes 1996, section 123.3514, 94.34 subdivision 4b, is amended to read: 94.35 Subd. 4b. [DISSEMINATION OF INFORMATION; NOTIFICATION OF 94.36 INTENT TO ENROLL.] By March 1 of each year, aschooldistrict 95.1shallmust provide general information about the program to all 95.2 pupils in grades 10 and 11. To assist the district in planning, 95.3 a pupil shall inform the district by March 30 of each year of 95.4 the pupil's intent to enroll in post-secondary courses during 95.5 the following school year. A pupil is not bound by notifying or 95.6 not notifying the district by March 30. 95.7 Sec. 79. Minnesota Statutes 1996, section 123.3514, 95.8 subdivision 4d, is amended to read: 95.9 Subd. 4d. [ENROLLMENT PRIORITY.] A post-secondary 95.10 institution shall give priority to its post-secondary students 95.11 when enrolling 11th and 12th grade pupils in its courses. A 95.12 post-secondary institution may provide information about its 95.13 programs to a secondary school or to a pupil or parent, but it 95.14 may not advertise or otherwise recruit or solicit the 95.15 participation on financial grounds, secondary pupils to enroll 95.16 in its programs. An institutionshallmust not enroll secondary 95.17 pupils, for post-secondary enrollment options purposes, in 95.18 remedial, developmental, or other courses that are not college 95.19 level. Once a pupil has been enrolled in a post-secondary 95.20 course under this section, the pupil shall not be displaced by 95.21 another student. 95.22 Sec. 80. Minnesota Statutes 1997 Supplement, section 95.23 123.3514, subdivision 4e, is amended to read: 95.24 Subd. 4e. [COURSES ACCORDING TO AGREEMENTS.] An eligible 95.25 pupil, according to subdivision 4, may enroll in a nonsectarian 95.26 course taught by a secondary teacher or a post-secondary faculty 95.27 member and offered at a secondary school, or another location, 95.28 according to an agreement between a public school board and the 95.29 governing body of an eligible public post-secondary system or an 95.30 eligible private post-secondary institution, as defined in 95.31 subdivision 3. All provisions of this section shall apply to a 95.32 pupil, public school board,schooldistrict, and the governing 95.33 body of a post-secondary institution, except as otherwise 95.34 provided. 95.35 Sec. 81. Minnesota Statutes 1996, section 123.3514, 95.36 subdivision 5, is amended to read: 96.1 Subd. 5. [CREDITS.] A pupil may enroll in a course under 96.2 this section for either secondary credit or post-secondary 96.3 credit. At the time a pupil enrolls in a course, the pupil 96.4 shall designate whether the course is for secondary or 96.5 post-secondary credit. A pupil taking several courses may 96.6 designate some for secondary credit and some for post-secondary 96.7 credit. A pupil must not audit a course under this section. 96.8 Aschooldistrict shall grant academic credit to a pupil 96.9 enrolled in a course for secondary credit if the pupil 96.10 successfully completes the course. Seven quarter or four 96.11 semester college credits equal at least one full year of high 96.12 school credit. Fewer college credits may be prorated. Aschool96.13 districtshallmust also grant academic credit to a pupil 96.14 enrolled in a course for post-secondary credit if secondary 96.15 credit is requested by a pupil. If no comparable course is 96.16 offered by the district, the districtshallmust, as soon as 96.17 possible, notify the commissioner,whichwho shall determine the 96.18 number of credits that shall be granted to a pupil who 96.19 successfully completes a course. If a comparable course is 96.20 offered by the district, the school board shall grant a 96.21 comparable number of credits to the pupil. If there is a 96.22 dispute between the district and the pupil regarding the number 96.23 of credits granted for a particular course, the pupil may appeal 96.24 theschoolboard's decision to the commissioner. The 96.25 commissioner's decision regarding the number of credits shall be 96.26 final. 96.27 The secondary credits granted to a pupilshallmust be 96.28 counted toward the graduation requirements and subject area 96.29 requirements of theschooldistrict. Evidence of successful 96.30 completion of each course and secondary credits grantedshall96.31 must be included in the pupil's secondary school record. A 96.32 pupilmustshall provide the school with a copy of the pupil's 96.33 grade in each course taken for secondary credit under this 96.34 section. Upon the request of a pupil, the pupil's secondary 96.35 school recordshallmust also include evidence of successful 96.36 completion and credits granted for a course taken for 97.1 post-secondary credit. In either case, the recordshallmust 97.2 indicate that the credits were earned at a post-secondary 97.3 institution. 97.4 If a pupil enrolls in a post-secondary institution after 97.5 leaving secondary school, the post-secondary institutionshall97.6 must award post-secondary credit for any course successfully 97.7 completed for secondary credit at that institution. Other 97.8 post-secondary institutions may award, after a pupil leaves 97.9 secondary school, post-secondary credit for any courses 97.10 successfully completed under this section. An institution may 97.11 not charge a pupil for the award of credit. 97.12 Sec. 82. Minnesota Statutes 1996, section 123.3514, 97.13 subdivision 6, is amended to read: 97.14 Subd. 6. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 97.15 a course under this section, the departmentof children,97.16families, and learning shallmust make payments according to 97.17 this subdivision for courses that were taken for secondary 97.18 credit. 97.19 The departmentshallmust not make payments to a school 97.20 district or post-secondary institution for a course taken for 97.21 post-secondary credit only. The departmentshallmust not make 97.22 payments to a post-secondary institution for a course from which 97.23 a student officially withdraws during the first 14 days of the 97.24 quarter or semester or who has been absent from the 97.25 post-secondary institution for the first 15 consecutive school 97.26 days of the quarter or semester and is not receiving instruction 97.27 in the home or hospital. 97.28 A post-secondary institution shall receive the following: 97.29 (1) for an institution granting quarter credit, the 97.30 reimbursement per credit hour shall be an amount equal to 88 97.31 percent of the product of the formula allowance, multiplied by 97.32 1.3, and divided by 45; or 97.33 (2) for an institution granting semester credit, the 97.34 reimbursement per credit hour shall be an amount equal to 88 97.35 percent of the product of the general revenue formula allowance, 97.36 multiplied by 1.3, and divided by 30. 98.1 The departmentof children, families, and learning shall98.2 must pay to each post-secondary institution 100 percent of the 98.3 amount in clause (1) or (2) within 30 days of receiving initial 98.4 enrollment information each quarter or semester. If changes in 98.5 enrollment occur during a quarter or semester, the change shall 98.6 be reported by the post-secondary institution at the time the 98.7 enrollment information for the succeeding quarter or semester is 98.8 submitted. At any time the departmentof children, families,98.9and learningnotifies a post-secondary institution that an 98.10 overpayment has been made, the institution shall promptly remit 98.11 the amount due. 98.12 Sec. 83. Minnesota Statutes 1996, section 123.3514, 98.13 subdivision 6b, is amended to read: 98.14 Subd. 6b. [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 98.15 For a pupil enrolled in a course according to this section, the 98.16 departmentof children, families, and learning shallmust make 98.17 payments according to this subdivision for courses taken to 98.18 fulfill high school graduation requirements by pupils eligible 98.19 for adult high school graduation aid. 98.20 The department must not make payments to aschooldistrict 98.21 or post-secondary institution for a course taken for 98.22 post-secondary credit only. The departmentshallmust not make 98.23 payments to a post-secondary institution for a course from which 98.24 a student officially withdraws during the first 14 days of the 98.25 quarter or semester or who has been absent from the 98.26 post-secondary institution for the first 15 consecutive school 98.27 days of the quarter or semester and is not receiving instruction 98.28 in the home or hospital. 98.29 A post-secondary institution shall receive the following: 98.30 (1) for an institution granting quarter credit, the 98.31 reimbursement per credit hour shall be an amount equal to 88 98.32 percent of the product of the formula allowance, multiplied by 98.33 1.3, and divided by 45; or 98.34 (2) for an institution granting semester credit, the 98.35 reimbursement per credit hour shall be an amount equal to 88 98.36 percent of the product of the general revenue formula allowance 99.1 multiplied by 1.3, and divided by 30. 99.2 The departmentof children, families, and learning shall99.3 must pay to each post-secondary institution 100 percent of the 99.4 amount in clause (1) or (2) within 30 days of receiving initial 99.5 enrollment information each quarter or semester. If changes in 99.6 enrollment occur during a quarter or semester, the change shall 99.7 be reported by the post-secondary institution at the time the 99.8 enrollment information for the succeeding quarter or semester is 99.9 submitted. At any time the departmentof children, families,99.10and learningnotifies a post-secondary institution that an 99.11 overpayment has been made, the institution shall promptly remit 99.12 the amount due. 99.13 A school district shall receive: 99.14 (1) for a pupil who is not enrolled in classes at a 99.15 secondary program, 12 percent of the general education formula 99.16 allowance times .65, times 1.3; or 99.17 (2) for a pupil who attends classes at a secondary program 99.18 part time, the general education formula allowance times .65, 99.19 times 1.3, times the ratio of the total number of hours the 99.20 pupil is in membership for courses taken by the pupil for credit 99.21 to 1020 hours. 99.22 Sec. 84. Minnesota Statutes 1997 Supplement, section 99.23 123.3514, subdivision 6c, is amended to read: 99.24 Subd. 6c. [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 99.25 ACCORDING TO AGREEMENTS.] (a) The agreement between apublic99.26schoolboard and the governing body of a public post-secondary 99.27 system or private post-secondary institution shall set forth the 99.28 payment amounts and arrangements, if any, from thepublic school99.29 board to the post-secondary institution. No payments shall be 99.30 made by the departmentof children, families, and learning99.31 according to subdivision 6 or 6b. For the purpose of computing 99.32 state aids for aschooldistrict, a pupil enrolled according to 99.33 subdivision 4e shall be counted in the average daily membership 99.34 of theschooldistrict as though the pupil were enrolled in a 99.35 secondary course that is not offered in connection with an 99.36 agreement. Nothing in this subdivision shall be construed to 100.1 prohibit a public post-secondary system or private 100.2 post-secondary institution from receiving additional state 100.3 funding that may be available under any other law. 100.4 (b) If a course is provided under subdivision 4e, offered 100.5 at a secondary school, and taught by a secondary teacher, the 100.6 post-secondary system or institution must not require a payment 100.7 from the school board that exceeds the cost to the 100.8 post-secondary institution that is directly attributable to 100.9 providing that course. 100.10 Sec. 85. Minnesota Statutes 1996, section 123.3514, 100.11 subdivision 7a, is amended to read: 100.12 Subd. 7a. [TEXTBOOKS; MATERIALS.] All textbooks and 100.13 equipment provided to a pupil, and paid for under subdivision 6, 100.14 are the property of the pupil's school district of residence. 100.15 Each pupil is required to return all textbooks and equipment to 100.16 theschooldistrict after the course has ended. 100.17 Sec. 86. Minnesota Statutes 1996, section 123.3514, 100.18 subdivision 7b, is amended to read: 100.19 Subd. 7b. [SUPPORT SERVICES.] The post-secondary 100.20 institutionshallmust inform the pupil of the support services 100.21 available at that institution. If the student has an individual 100.22 education plan that provides general education support and 100.23 accommodations, the post-secondary institutionshallmust 100.24 provide the support services as described in the student's IEP 100.25 and the post-secondary institution and the district shall 100.26 negotiate an agreement on the rate to be charged for the 100.27 services. Nothing in this section shall prevent the student 100.28 from enrolling while the agreement is being developed. If the 100.29 parties cannot agree on the services, on application of either 100.30 party, the commissioner shall resolve the dispute in the same 100.31 manner the commissioner fixes tuition rates under section 100.32 120.17, subdivision 4. The commissioner's decision is binding 100.33 on both parties. 100.34 Sec. 87. Minnesota Statutes 1997 Supplement, section 100.35 123.3514, subdivision 8, is amended to read: 100.36 Subd. 8. [TRANSPORTATION.] A parent or guardian of a pupil 101.1 enrolled in a course for secondary credit may apply to the 101.2 pupil's district of residence for reimbursement for transporting 101.3 the pupil between the secondary school in which the pupil is 101.4 enrolled or the pupil's home and the post-secondary institution 101.5 that the pupil attends. The state shall provide state aid to a 101.6 district in an amount sufficient to reimburse the parent or 101.7 guardian for the necessary transportation costs when the 101.8 family's or guardian's income is at or below the poverty level, 101.9 as determined by the federal government. The reimbursement 101.10 shall be the pupil's actual cost of transportation or 15 cents 101.11 per mile traveled, whichever is less. Reimbursement may not be 101.12 paid for more than 250 miles per week. However, if the nearest 101.13 post-secondary institution is more than 25 miles from the 101.14 pupil's resident secondary school, the weekly reimbursement may 101.15 not exceed the reimbursement rate per mile times the actual 101.16 distance between the secondary school or the pupil's home and 101.17 the nearest post-secondary institution times ten. The state 101.18shallmust pay aid to the district according to this subdivision. 101.19 Sec. 88. Minnesota Statutes 1996, section 124.227, is 101.20 amended to read: 101.21 124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION 101.22 TRANSPORTATION GRANTS.] 101.23 (a) A district that provides transportation of pupils to 101.24 and from an interdistrict program for desegregation or 101.25 integration purposes may apply to the commissionerof children,101.26families, and learningfor a grant to cover the additional costs 101.27 of transportation. 101.28 (b) A district in the metropolitan area may apply to the 101.29 commissioner for a grant to cover the costs of transporting 101.30 pupils who are enrolled under section 120.062 if the enrollment 101.31 of the student in the nonresident district contributes to 101.32 desegregation or integration purposes. The commissionermust101.33 shall develop the form and manner of applications, the criteria 101.34 to be used to determine when transportation is for desegregation 101.35 or integration purposes, and the accounting procedure to be used 101.36 to determine excess costs. In determining the grant amount, the 102.1 commissionermustshall consider other revenue received by the 102.2 district for transportation for desegregation or integration 102.3 purposes. 102.4 (c) Grants may be awarded under paragraph (b) only if 102.5 grants awarded under paragraph (a) have been fully funded. 102.6 Sec. 89. Minnesota Statutes 1996, section 124.248, 102.7 subdivision 1, is amended to read: 102.8 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 102.9 education revenueshallmust be paid to a charter school as 102.10 though it were aschooldistrict. The general education revenue 102.11 for each pupil unit is the state average general education 102.12 revenue per pupil unit minus $170, calculated without 102.13 compensatory revenue, transportation sparsity revenue, and the 102.14 transportation portion of the transition revenue adjustment, 102.15 plus compensatory revenue as though the school were a school 102.16 district. 102.17 Sec. 90. Minnesota Statutes 1996, section 124.248, 102.18 subdivision 1a, is amended to read: 102.19 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 102.20shallmust be paid to a charter school that provides 102.21 transportation services according to section 120.064, 102.22 subdivision 15, according to this subdivision. Transportation 102.23 aid shall equal transportation revenue. 102.24 (a) In addition to the revenue under subdivision 1, a 102.25 charter school providing transportation servicesshallmust 102.26 receive general education aid for each pupil unit equal to the 102.27 sum of $170, plus the transportation sparsity allowance for the 102.28 school district in which the charter school is located, plus the 102.29 transportation transition allowance for theschooldistrict in 102.30 which the charter school is located. 102.31 (b) For the first two years that a charter school is 102.32 providing transportation services, the special programs 102.33 transportation revenue equals the charter school's actual cost 102.34 in the current school year for transportation services for 102.35 children with disabilities under section 124.223, subdivisions 102.36 4, 5, 7, and 8. For the third year of transportation services 103.1 and later fiscal years, the special programs transportation 103.2 revenue shall be computed according to section 124.225, 103.3 subdivision 14. 103.4 Sec. 91. Minnesota Statutes 1997 Supplement, section 103.5 124.248, subdivision 3, is amended to read: 103.6 Subd. 3. [SPECIAL EDUCATION AID.] Except as provided in 103.7 subdivision 1a, paragraph (b), special education aidshallmust 103.8 be paid to a charter school according to section 124.3201, as 103.9 though it were a school district. The charter school may charge 103.10 tuition to the district of residence as provided in section 103.11 120.17, subdivision 4. The charter school shall allocate its 103.12 special education levy equalization revenue to the resident 103.13 districts of the pupils attending the charter school. The 103.14 districts of residence shall levy as though they were 103.15 participating in a cooperative, as provided in section 124.321, 103.16 subdivision 3. 103.17 Sec. 92. Minnesota Statutes 1997 Supplement, section 103.18 124.248, subdivision 4, is amended to read: 103.19 Subd. 4. [OTHER AID, GRANTS, REVENUE.] (a) A charter 103.20 school is eligible to receive other aids, grants, and revenue 103.21 according to chapters 120 to 129, as though it were aschool103.22 district except that, notwithstanding section 124.195, 103.23 subdivision 3, the paymentsshallmust be of an equal amount on 103.24 each of the 23 payment dates unless a charter school is in its 103.25 first year of operation in which case it shall receive on its 103.26 first payment date ten percent of its cumulative amount 103.27 guaranteed for the year and 22 payments of an equal amount 103.28 thereafter the sum of which shall be 90 percent of the 103.29 cumulative amount guaranteed. However, it may not receive aid, 103.30 a grant, or revenue if a levy is required to obtain the money, 103.31 except as otherwise provided in this section. Federal aid 103.32 received by the state must be paid to the school, if it 103.33 qualifies for the aid as though it were a school district. 103.34 (b) A charter school may receive money from any source for 103.35 capital facilities needs. In the year-end report to the state 103.36 board of education, the charter school shall report the total 104.1 amount of funds received from grants and other outside sources. 104.2 Sec. 93. Minnesota Statutes 1996, section 124.273, 104.3 subdivision 3, is amended to read: 104.4 Subd. 3. [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 104.5 counting the number of pupils of limited English proficiency for 104.6 purposes of this section, districts may include pupils of 104.7 limited English proficiency who attend nonpublic schools in the 104.8 district. A district which counts those pupils and receives aid 104.9 pursuant to this sectionshallmust offer those pupils the same 104.10 programs on the same terms that it offers to pupils of limited 104.11 English proficiency who attend the public school. A program 104.12 provided for a nonpublic school pupil pursuant to this 104.13 subdivisionshallmust be provided at a public school or a 104.14 neutral site as defined in section 123.932, subdivision 9. 104.15 Nonpublic school pupils served by a district's educational 104.16 program for pupils of limited English proficiencyshallmust be 104.17 counted for average daily membership pursuant to sections 104.18 124A.02, subdivisions 20 to 22, and 124A.034, subdivisions 1 to 104.19 2. 104.20 Sec. 94. Minnesota Statutes 1996, section 124.273, 104.21 subdivision 4, is amended to read: 104.22 Subd. 4. [APPLICATION DATES.] To obtain aid for limited 104.23 English proficiency programs, a districtshallmust submit 104.24 information required by the department to implement this section. 104.25 Sec. 95. Minnesota Statutes 1996, section 124.273, 104.26 subdivision 6, is amended to read: 104.27 Subd. 6. [RECORDS; AUDIT.] A district which applies for 104.28 aid pursuant to this sectionshallmust maintain records which 104.29 support the information contained in all of its applications. 104.30 The commissionerof children, families, and learningmay audit 104.31 these records upon request. A district which receives aid 104.32 pursuant to this sectionshallmust keepsuchadditional records 104.33 in the manner prescribed by the commissioner to ensure that an 104.34 educational program for pupils of limited English proficiency is 104.35 implemented and operated in accordance with sections 126.261 to 104.36 126.269. 105.1 Sec. 96. Minnesota Statutes 1996, section 124.273, 105.2 subdivision 7, is amended to read: 105.3 Subd. 7. [MONEY FROM OTHER SOURCES.] Aschooldistrict 105.4 providing a program for pupils of limited English proficiency 105.5shallmust be eligible to receive moneys for these programs from 105.6 other government agencies and from private sources when these 105.7 moneys are available. 105.8 Sec. 97. Minnesota Statutes 1996, section 124.311, 105.9 subdivision 1, is amended to read: 105.10 Subdivision 1. [INSTRUCTION.] Aschooldistrict may 105.11 receive assurance of mastery revenue to provide direct 105.12 instructional services to eligible pupils. 105.13 Sec. 98. Minnesota Statutes 1996, section 124.32, is 105.14 amended to read: 105.15 124.32 [CHILDREN WITH A DISABILITY.] 105.16 Subd. 2b. [TRAVEL AID.] The stateshallmust pay each 105.17 district one-half of the sum actually expended by a district for 105.18 necessary travel of essential personnel providing home-based 105.19 services to children with a disability under age five and their 105.20 families. 105.21 Subd. 4. [AID PAYMENT.] The aids provided for children 105.22 with a disabilityshallmust be paid to the district providing 105.23 the special instruction and services. General education 105.24 aidshallmust be paid to the district of the pupil's 105.25 residence. The total amount of aid paid may not exceed the 105.26 amount expended for children with a disability in the year for 105.27 which the aid is paid. 105.28 Subd. 6. [FULL STATE PAYMENT.] The stateshallmust pay 105.29 each district the actual cost incurred in providing instruction 105.30 and services for a child with a disability whose district of 105.31 residence has been determined by section 120.17, subdivision 8a, 105.32 and who is temporarily placed in a state institution or a 105.33 licensed residential facility for care and treatment. This 105.34 section does not apply to a child placed in a foster home or a 105.35 foster group home. 105.36 Upon following the procedure specified by the commissioner 106.1of children, families, and learning, the district may bill the 106.2 state the actual cost incurred in providing the services 106.3 including transportation costs and a proportionate amount of 106.4 capital expenditures and debt service, minus the amount of the 106.5 basic revenue, as defined in section 124A.22, subdivision 2, of 106.6 the district for the child and the special education aid, 106.7 transportation aid, and any other aid earned on behalf of the 106.8 child. The limitset forthin subdivision 4shall applyapplies 106.9 to aid paid pursuant to this subdivision. 106.10 To the extent possible, the commissioner shall obtain 106.11 reimbursement from another state for the cost of serving any 106.12 child whose parent or guardian resides in that state. The 106.13 commissioner may contract with the appropriate authorities of 106.14 other states to effect reimbursement. All money received from 106.15 other statesshallmust be paid to the state treasury and placed 106.16 in the general fund. 106.17 Subd. 7. [PROGRAM AND AID APPROVAL.] Before June 1 of each 106.18 year, each district providing special instruction and services 106.19 to children with a disabilityshallmust submit to the 106.20 commissioner an application for approval of these programs and 106.21 their budgets for the next fiscal year. The applicationshall106.22 must include an enumeration of the costs proposed as eligible 106.23 for state aid pursuant to this section and of the estimated 106.24 number and grade level of children with a disability in the 106.25 district who will receive special instruction and services 106.26 during the regular school year and in summer school programs 106.27 during the next fiscal year. The applicationshallmust also 106.28 include any other information deemed necessary by the 106.29 commissioner for the calculation of state aid and for the 106.30 evaluation of the necessity of the program, the necessity of the 106.31 personnel to be employed in the program, for determining the 106.32 amount which the program will receive from grants from federal 106.33 funds, or special grants from other state sources, and the 106.34 program's compliance with the rules and standards of the state 106.35 board. The commissioner shall review each application to 106.36 determine whether the program and the personnel to be employed 107.1 in the program are actually necessary and essential to meet the 107.2 district's obligation to provide special instruction and 107.3 services to children with a disability pursuant to sections 107.4 120.17 and 120.1701. The commissioner shall not approve aid 107.5 pursuant to this section for any program or for the salary of 107.6 any personnel determined to be unnecessary or unessential on the 107.7 basis of this review. The commissioner may withhold all or any 107.8 portion of the aid for programs which receive grants from 107.9 federal funds, or special grants from other state sources. By 107.10 August 31 the commissioner shall approve, disapprove, or modify 107.11 each application, and notify each applying district of the 107.12 action and of the estimated amount of aid for the programs. The 107.13 commissioner shall provide procedures for districts to submit 107.14 additional applications for program and budget approval during 107.15 the fiscal year, for programs needed to meet any substantial 107.16 changes in the needs of children with a disability in the 107.17 district. Notwithstanding the provisions of section 124.15, the 107.18 commissioner may modify or withdraw the program or aid approval 107.19 and withhold aid pursuant to this section without proceeding 107.20 according to section 124.15 at any time the commissioner 107.21 determines that the program does not comply with rules of the 107.22 state board or that any facts concerning the program or its 107.23 budget differ from the facts in the district's approved 107.24 application. 107.25 Subd. 8. [REGULAR CLASSROOM PROGRAMS.] When planning 107.26 programs for the education of children with a disability in the 107.27 regular classroom, school districts are encouraged to consider 107.28 the size of the regular class and to provide the support 107.29 services necessary toinsureensure successful mainstreaming. 107.30 Subd. 10. [SUMMER SCHOOL.] By March 15 of each year, 107.31 districtsshallmust submit separate applications for program 107.32 and budget approval for summer school programs.The review of107.33 These applicationsshallmust be reviewed as provided in 107.34 subdivision 7. By May 1 of each year, the commissioner shall 107.35 approve, disapprove, or modify the applications and notify the 107.36 districts of the action and of the estimated amount of aid for 108.1 the summer school programs. 108.2 Subd. 12. [ALLOCATION FROM COOPERATIVE CENTERS, SERVICE 108.3 COOPERATIVES, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] 108.4 For purposes of this section, a special education cooperative, 108.5 service cooperative, education district, or an intermediate 108.6 districtshallmust allocate its approved expenditures for 108.7 special education programs among participatingschooldistricts. 108.8 Special education aid for services provided by a cooperative, 108.9 service cooperative, education district, or intermediate 108.10 districtshallmust be paid to the participating school 108.11 districts. 108.12 Sec. 99. Minnesota Statutes 1996, section 124.3201, 108.13 subdivision 5, is amended to read: 108.14 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 108.15 A school district's special education revenue for fiscal year 108.16 1996 and later equals the state total special education revenue, 108.17 minus the amount determined under paragraph (b), times the ratio 108.18 of the district's adjusted special education base revenue to the 108.19 state total adjusted special education base revenue. If the 108.20 state board of education modifies its rules for special 108.21 education in a manner that increases aschooldistrict's special 108.22 education obligations or service requirements, the commissioner 108.23of children, families, and learningshall annually increase each 108.24 district's special education revenue by the amount necessary to 108.25 compensate for the increased service requirements. The 108.26 additional revenue equals the cost in the current year 108.27 attributable to rule changes not reflected in the computation of 108.28 special education base revenue, multiplied by the appropriate 108.29 percentages from subdivision 2. 108.30 (b) Notwithstanding paragraph (a), if the special education 108.31 base revenue for a district equals zero, the special education 108.32 revenue equals the amount computed according to subdivision 2 108.33 using current year data. 108.34 Sec. 100. Minnesota Statutes 1996, section 124.3201, 108.35 subdivision 6, is amended to read: 108.36 Subd. 6. [SPECIAL EDUCATION AID.] Aschooldistrict's 109.1 special education aid for fiscal year 1996 and later equals the 109.2 district's special education revenue times the aid percentage 109.3 factor for that year. 109.4 Sec. 101. Minnesota Statutes 1996, section 124.3201, 109.5 subdivision 7, is amended to read: 109.6 Subd. 7. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 109.7 INTERMEDIATES.] For the purposes of this section and section 109.8 124.321, a special education cooperative or an intermediate 109.9 districtshallmust allocate its approved expenditures for 109.10 special education programs among participating school districts. 109.11 Sec. 102. Minnesota Statutes 1997 Supplement, section 109.12 124.321, subdivision 1, is amended to read: 109.13 Subdivision 1. [LEVY EQUALIZATION REVENUE.](a)For fiscal 109.14 year 1999, special education levy equalization revenue for a 109.15 school district, excluding an intermediate school district, 109.16 equals the sum of the following amounts: 109.17 (1) the levy percentage factor for that year times the 109.18 district's special education revenue under section 124.3201; 109.19 plus 109.20 (2) the levy percentage factor for that year times the 109.21 district's special education excess cost revenue under section 109.22 124.323; plus 109.23 (3) the levy percentage factor for that year times the 109.24 district's school-to-work program for children with a disability 109.25 revenue under section 124.574. 109.26 Sec. 103. Minnesota Statutes 1997 Supplement, section 109.27 124.321, subdivision 2, is amended to read: 109.28 Subd. 2. [REVENUE ALLOCATION FROM STATE ACADEMIES.] (a) 109.29 For purposes of this section, the Minnesota state academy for 109.30 the deaf or the Minnesota state academy for the blind each year 109.31shallmust allocate an amount equal to the levy percentage 109.32 factor for that year times their special education revenue under 109.33 section 124.3201 for the year to each school district that 109.34 assigns a child with an individual education plan requiring an 109.35 instructional aide to attend either academy. Theschool109.36 districts that assign a child who requires an instructional aide 110.1 may make a levy in the amount of the costs allocated to them by 110.2 either academy. 110.3 (b) When the Minnesota state academy for the deaf or the 110.4 Minnesota state academy for the blind allocates revenue among 110.5 school districts that assign a child who requires an 110.6 instructional aide, for purposes of the districts making a levy 110.7 under this subdivision, the academyshallmust provide 110.8 information to the departmentof children, families, and110.9learningon the amount of revenue it allocated to the school 110.10 districts that assign a child who requires an instructional aide. 110.11 Sec. 104. Minnesota Statutes 1996, section 124.322, 110.12 subdivision 1, is amended to read: 110.13 Subdivision 1. [ELIGIBILITY.] A district is eligible for 110.14 an alternative delivery base revenue adjustment if the 110.15 commissionerof children, families, and learninghas approved 110.16 the application of the district according to section 120.173. 110.17 Sec. 105. Minnesota Statutes 1997 Supplement, section 110.18 124.322, subdivision 1a, is amended to read: 110.19 Subd. 1a. [BASE REVENUE ADJUSTMENT.] For the third fiscal 110.20 year after approval of a district's application, and thereafter, 110.21 the special education base revenue under section 124.3201, 110.22 subdivision 1,shallmust be computed based on activities 110.23 defined as reimbursable under state board rules for special 110.24 education and nonspecial education students, and additional 110.25 activities as detailed and approved by the commissionerof110.26children, families, and learning. 110.27 Sec. 106. Minnesota Statutes 1997 Supplement, section 110.28 124.323, subdivision 1, is amended to read: 110.29 Subdivision 1. [DEFINITIONS.]InFor the purposes of this 110.30 section, the definitions in this subdivision apply. 110.31 (a) "Unreimbursed special education cost" means the sum of 110.32 the following: 110.33 (1) expenditures for teachers' salaries, contracted 110.34 services, supplies, equipment, and transportation services 110.35 eligible for revenue under section 124.3201; plus 110.36 (2) expenditures for tuition bills received under section 111.1 120.17 for services eligible for revenue under sections 111.2 124.3201, subdivision 2, and 124.3202, subdivision 1; minus 111.3 (3) revenue for teachers' salaries, contracted services, 111.4 supplies, and equipment under sections 124.3201 and 124.3202; 111.5 minus 111.6 (4) tuition receipts under section 120.17 for services 111.7 eligible for revenue under sections 124.3201, subdivision 2, and 111.8 124.3202, subdivision 1. 111.9 (b) "General revenue,"for fiscal year 1996,means for 111.10 fiscal year 1996, the sum of the general education revenue 111.11 according to section 124A.22, subdivision 1, as adjusted 111.12 according to section 124A.036, subdivision 5, plus the total 111.13 referendum revenue according to section 124A.03, subdivision 111.14 1e. For fiscal years 1997 and later, "general revenue" means 111.15 the sum of the general education revenue according to section 111.16 124A.22, subdivision 1, as adjusted according to section 111.17 124A.036, subdivision 5, plus the total referendum revenue minus 111.18 transportation sparsity revenue minus total operating capital 111.19 revenue. 111.20 Sec. 107. Minnesota Statutes 1996, section 124.48, as 111.21 amended by Laws 1997, chapter 192, section 20, is amended to 111.22 read: 111.23 124.48 [INDIAN SCHOLARSHIPS.] 111.24 Subdivision 1. [AWARDS.] The state board, with the advice 111.25 and counsel of the Minnesota Indian scholarship committee, may 111.26 award scholarships to any Minnesota resident student who is of 111.27 one-fourth or more Indian ancestry, who has applied for other 111.28 existing state and federal scholarship and grant programs, and 111.29 who, in the opinion of the board, has the capabilities to 111.30 benefit from further education. Scholarshipsshallmust be for 111.31 advanced or specialized education in accredited or approved 111.32 colleges or in business, technical or vocational schools. 111.33 Scholarships shall be used to defray the total cost of education 111.34 including tuition, incidental fees, books, supplies, 111.35 transportation, other related school costs and the cost of board 111.36 and room and shall be paid directly to the college or school 112.1 concerned. The total cost of education includes all tuition and 112.2 fees for each student enrolling in a public institution and the 112.3 portion of tuition and fees for each student enrolling in a 112.4 private institution that does not exceed the tuition and fees at 112.5 a comparable public institution. Each student shall be awarded 112.6 a scholarship based on the total cost of the student's education 112.7 and a standardized need analysis. The amount and type of each 112.8 scholarship shall be determined through the advice and counsel 112.9 of the Minnesota Indian scholarship committee. 112.10 When an Indian student satisfactorily completes the work 112.11 required by a certain college or school in a school year the 112.12 student is eligible for additional scholarships, if additional 112.13 training is necessary to reach the student's educational and 112.14 vocational objective. Scholarships may not be given to any 112.15 Indian student for more than five years of study without special 112.16 approval of the Minnesota Indian scholarship committee. 112.17 Subd. 3. [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 112.18 Indian scholarship committee is established.Members shall be112.19appointed byThe state board must appoint members with the 112.20 assistance of the Indian affairs council as provided in section 112.21 3.922, subdivision 6. Members shall be reimbursed for expenses 112.22 as provided in section 15.059, subdivision 6. The state board 112.23 shall determine the membership terms and duration of the 112.24 committee, which expires no later than June 30, 2001. The 112.25 committee shall provide advice to the state board in awarding 112.26 scholarships to eligible American Indian students and in 112.27 administering the state board's duties regarding awarding of 112.28 American Indian post-secondary preparation grants to school 112.29 districts. 112.30 Sec. 108. Minnesota Statutes 1997 Supplement, section 112.31 124.481, is amended to read: 112.32 124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 112.33 The state board of education, with the advice of the 112.34 Minnesota Indian scholarship committee, may make grants to 112.35schooldistricts or tribal grant or contract schools to support 112.36 post-secondary preparation for secondary pupils who are of 113.1 one-fourth or more Indian ancestry and who, in the opinion of 113.2 the superintendent, have the capabilities to benefit from higher 113.3 education. Distribution of the grants must be in accordance 113.4 with a plan prepared by the state board, with the advice of the 113.5 Minnesota Indian scholarship committee, that describes the 113.6 objectives and methods of implementing the grant program, 113.7 including the manner in which grants will be distributed in 113.8 proportion to the geographical distribution of the Indian 113.9 population of the state. 113.10 Sec. 109. Minnesota Statutes 1996, section 124.573, 113.11 subdivision 2, is amended to read: 113.12 Subd. 2. [LIMIT.] The commissioner may withhold all or any 113.13 portion of the aid paid under this section for a secondary 113.14 vocational education program which receives funds from any other 113.15 source.In no event shallA district or center must not receive 113.16 a total amount of state aid pursuant to this section which, when 113.17 added to funds from other sources, will provide the program an 113.18 amount for salaries and travel which exceeds 100 percent of the 113.19 amount of its expenditures for salaries and travel in the 113.20 program. 113.21 Sec. 110. Minnesota Statutes 1996, section 124.573, 113.22 subdivision 2b, is amended to read: 113.23 Subd. 2b. [SECONDARY VOCATIONAL AID.] A district's 113.24 secondary vocational education aid for a fiscal year equals the 113.25 lesser of: 113.26 (a) $80 times the district's average daily membership in 113.27 grades 10 to 12; or 113.28 (b) 25 percent of approved expenditures for the following: 113.29 (1) salaries paid to essential, licensed personnel 113.30 providing direct instructional services to students in that 113.31 fiscal year for services rendered in the district's approved 113.32 secondary vocational education programs; 113.33 (2) contracted services provided by a public or private 113.34 agency other than a Minnesota school district or cooperative 113.35 center under subdivision 3a; 113.36 (3) necessary travel between instructional sites by 114.1 licensed secondary vocational education personnel; 114.2 (4) necessary travel by licensed secondary vocational 114.3 education personnel for vocational student organization 114.4 activities held within the state for instructional purposes; 114.5 (5) curriculum development activities that are part of a 114.6 five-year plan for improvement based on program assessment; 114.7 (6) necessary travel by licensed secondary vocational 114.8 education personnel for noncollegiate credit bearing 114.9 professional development; and 114.10 (7) specialized vocational instructional supplies. 114.11 (c) Up to ten percent of a district's secondary vocational 114.12 aid may be spent on equipment purchases. Districts using 114.13 secondary vocational aid for equipment purchases must report to 114.14 the departmentof children, families, and learningon the 114.15 improved learning opportunities for students that result from 114.16 the investment in equipment. 114.17 Sec. 111. Minnesota Statutes 1996, section 124.573, 114.18 subdivision 2e, is amended to read: 114.19 Subd. 2e. [ALLOCATION FROM COOPERATIVE CENTERS AND 114.20 INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, 114.21 paragraph (b), and 2f, paragraph (b), a cooperative center or an 114.22 intermediate districtshallmust allocate its approved 114.23 expenditures for secondary vocational education programs among 114.24 participatingschooldistricts. For purposes of subdivision 2f, 114.25 paragraph (a), a cooperative center or an intermediate 114.26 districtshallmust allocate its secondary vocational aid for 114.27 fiscal year 1994 among participatingschooldistricts. For 1995 114.28 and later fiscal years, secondary vocational aid for services 114.29 provided by a cooperative center or an intermediate district 114.30 shall be paid to the participatingschooldistrict. 114.31 Sec. 112. Minnesota Statutes 1996, section 124.573, 114.32 subdivision 2f, is amended to read: 114.33 Subd. 2f. [AID GUARANTEE.] Notwithstanding subdivision 2b, 114.34 the secondary vocational education aid for aschooldistrict is 114.35 not less than the lesser of: 114.36 (a) 95 percent of the secondary vocational education aid 115.1 the district received for the previous fiscal year; or 115.2 (b) 40 percent of the approved expenditures for secondary 115.3 vocational programs included in subdivision 2b, paragraph (b). 115.4 Sec. 113. Minnesota Statutes 1996, section 124.573, 115.5 subdivision 3, is amended to read: 115.6 Subd. 3. [COMPLIANCE WITH RULES.] Aidshallmust be paid 115.7 under this section only for services rendered or for costs 115.8 incurred in secondary vocational education programs approved by 115.9 the commissioner and operated in accordance with rules 115.10 promulgated by the state board. These rulesshallmust provide 115.11 minimum student-staff ratios required for a secondary vocational 115.12 education program area to qualify for this aid. The rules must 115.13 not require the collection of data at the program or course 115.14 level to calculate secondary vocational aid. The rulesshall115.15 must not require any minimum number of administrative staff, any 115.16 minimum period of coordination time or extended employment for 115.17 secondary vocational education personnel, or the availability of 115.18 vocational student activities or organizations for a secondary 115.19 vocational education program to qualify for this aid. The 115.20 requirement in these rules that program components be available 115.21 for a minimum number of hoursshallmust not be construed to 115.22 prevent pupils from enrolling in secondary vocational education 115.23 courses on an exploratory basis for less than a full school 115.24 year. The state boardshallmust not require aschooldistrict 115.25 to offer more than four credits or 560 hours of vocational 115.26 education course offerings in any school year. Rules relating 115.27 to secondary vocational education programsshallmust not 115.28 incorporate the provisions of the state plan for vocational 115.29 education by reference. This aid shall be paid only for 115.30 services rendered and for costs incurred by essential, licensed 115.31 personnel who meet the work experience requirements for 115.32 licensure pursuant to the rules of the state board. Licensed 115.33 personnel means persons holding a valid secondary vocational 115.34 license issued by the commissioner, except that when. If an 115.35 average of five or fewer secondary full-time equivalent students 115.36 are enrolled per teacher in an approved post-secondary program 116.1 at intermediate district No. 287, 916, or 917, licensed 116.2 personnel means persons holding a valid vocational license 116.3 issued by the commissioner, the state board for vocational116.4technical education,or the board of trustees of the Minnesota 116.5 state colleges and universities. Notwithstanding section 116.6 124.15, the commissioner may modify or withdraw the program or 116.7 aid approval and withhold aid under this section without 116.8 proceeding under section 124.15 at any time. To do so, the 116.9 commissioner must determine that the program does not comply 116.10 with rules of the state board or that any facts concerning the 116.11 program or its budget differ from the facts in the district's 116.12 approved application. 116.13 Sec. 114. Minnesota Statutes 1996, section 124.573, 116.14 subdivision 3a, is amended to read: 116.15 Subd. 3a. [AID FOR CONTRACTED SERVICES.] In addition to 116.16 the provisions of subdivisions 2 and 3, a school district or 116.17 cooperative center may contract with a public or private agency 116.18 other than a Minnesota school district or cooperative center for 116.19 the provision of secondary vocational education services. The 116.20 state boardshallmust promulgate rules relating to program 116.21 approval procedures and criteria for these contracts and 116.22 aidshallmust be paid only for contracts approved by the 116.23 commissionerof children, families, and learning.For the116.24purposes of subdivision 4,The district or cooperative center 116.25 contracting for these servicesshallmust be construed to be 116.26 providing the services. 116.27 Sec. 115. Minnesota Statutes 1996, section 124.573, 116.28 subdivision 5a, is amended to read: 116.29 Subd. 5a. [DISTRICT REPORTS.] Each district or cooperative 116.30 centershallmust report data to the department for all 116.31 secondary vocational education programs as required by the 116.32 department to implement the secondary vocational aid formula. 116.33 Sec. 116. Minnesota Statutes 1997 Supplement, section 116.34 124.574, subdivision 9, is amended to read: 116.35 Subd. 9. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 116.36 INTERMEDIATE DISTRICTS.] For purposes of this section and 117.1 section 124.321, a cooperative center or an intermediate 117.2 districtshallmust allocate its approved expenditures for 117.3 school-to-work programs for children with a disability among 117.4 participating school districts. Aid for school-to-work programs 117.5 for children with a disability for services provided by a 117.6 cooperative or intermediate district shall be paid to the 117.7 participatingschooldistricts. 117.8 Sec. 117. Minnesota Statutes 1996, section 124.86, 117.9 subdivision 1, is amended to read: 117.10 Subdivision 1. [AUTHORIZATION.] (a) Each year each 117.11 American Indian-controlled tribal contract or grant school 117.12 authorized by the United States Code, title 25, section 450f, 117.13 that is located on a reservation within the state is eligible to 117.14 receive tribal contract or grant school aid subject to the 117.15 requirements inthis subdivisionparagraphs (b) to (d). 117.16(a)(b) The school must plan, conduct, and administer an 117.17 education program that complies with the requirements of either 117.18 this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 117.19 126, 129, and 268A or Code of Federal Regulations, title 25, 117.20 sections 31.0 to 45.80. 117.21(b)(c) The school must comply with all other state 117.22 statutes governing independent school districts or their 117.23 equivalent in the Code of Federal Regulations, title 25. 117.24(c)(d) The state tribal contract or grant school aid must 117.25 be used to supplement, and not to replace, the money for 117.26 American Indian education programs provided by the federal 117.27 government. 117.28 Sec. 118. Minnesota Statutes 1997 Supplement, section 117.29 124.86, subdivision 2, is amended to read: 117.30 Subd. 2. [REVENUE AMOUNT.] An American Indian-controlled 117.31 tribal contract or grant school that is located on a reservation 117.32 within the state and that complies with the requirements in 117.33 subdivision 1 is eligible to receive tribal contract or grant 117.34 school aid. The amount of aid is derived by: 117.35 (1) multiplying the formula allowance under section 117.36 124A.22, subdivision 2, less $170, times the difference between 118.1(a)(i) the actual pupil units as defined in section 124A.02, 118.2 subdivision 15, in average daily membership, excluding section 118.3 124.17, subdivision 2f, and(b)(ii) the number of pupils for 118.4 the current school year, weighted according to section 124.17, 118.5 subdivision 1, receiving benefits under section 123.933 or 118.6 123.935 or for which the school is receiving reimbursement under 118.7 section 126.23; 118.8 (2) adding to the result in clause (1) an amount equal to 118.9 the product of the formula allowance under section 124A.22, 118.10 subdivision 2, less $300 times the tribal contract compensation 118.11 revenue pupil units; 118.12 (3) subtracting from the result in clause (2) the amount of 118.13 money allotted to the school by the federal government through 118.14 Indian School Equalization Program of the Bureau of Indian 118.15 Affairs, according to Code of Federal Regulations, title 25, 118.16 part 39, subparts A to E, for the basic program as defined by 118.17 section 39.11, paragraph (b), for the base rate as applied to 118.18 kindergarten through twelfth grade, excluding small school 118.19 adjustments and additional weighting, but not money allotted 118.20 through subparts F to L for contingency funds, school board 118.21 training, student training, interim maintenance and minor 118.22 repair, interim administration cost, prekindergarten, and 118.23 operation and maintenance, and the amount of money that is 118.24 received according to section 126.23; 118.25 (4) dividing the result in clause (3) by the sum of the 118.26 actual pupil units in average daily membership, excluding 118.27 section 124.17, subdivision 2f, plus the tribal contract 118.28 compensation revenue pupil units; and 118.29 (5) multiplying the sum of the actual pupil units, 118.30 including section 124.17, subdivision 2f, in average daily 118.31 membership plus the tribal contract compensation revenue pupil 118.32 units by the lesser of $1,500 or the result in clause (4). 118.33 Sec. 119. Minnesota Statutes 1996, section 124.86, 118.34 subdivision 3, is amended to read: 118.35 Subd. 3. [WAIVER.] Notwithstanding subdivision 1, 118.36 paragraphs(a)(b) and(b)(c), a tribal contract or grant 119.1 school: 119.2 (1) is not subject to the Minnesota election law; 119.3 (2) has no authority under this section to levy for 119.4 property taxes, issue and sell bonds, or incur debt; and 119.5 (3) may request through its managing tribal organization a 119.6 recommendation of the state board of education, for 119.7 consideration of the legislature, that a tribal contract or 119.8 grant school not be subject to specified statutes related to 119.9 independent school districts. 119.10 Sec. 120. Minnesota Statutes 1996, section 124.86, 119.11 subdivision 4, is amended to read: 119.12 Subd. 4. [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] A 119.13 school receiving aid under this section is eligible to receive 119.14 early childhood family education revenue to provide early 119.15 childhood family education programs for parents and children who 119.16 are enrolled or eligible for enrollment in a federally 119.17 recognized tribe. The revenue equals 1.5 times the statewide 119.18 average expenditure per participant under section 124.2711, 119.19 times the number of children and parents participating full time 119.20 in the program. The programshallmust comply with section 119.21 121.882, except that the school is not required to provide a 119.22 community education program or establish a community education 119.23 advisory council. The programshallmust be designed to improve 119.24 the skills of parents and promote American Indian history, 119.25 language, and culture. The schoolshallmust make affirmative 119.26 efforts to encourage participation by fathers. Admission may 119.27 not be limited to those enrolled in or eligible for enrollment 119.28 in a federally recognized tribe. 119.29 Sec. 121. Minnesota Statutes 1996, section 124.90, is 119.30 amended to read: 119.31 124.90 [MEDICAL ASSISTANCE PAYMENTS TO SCHOOL DISTRICTS.] 119.32 Subdivision 1. [ELIGIBILITY.] Aschooldistrict may enroll 119.33 as a provider in the medical assistance program and receive 119.34 medical assistance payments for covered special education 119.35 services provided to persons eligible for medical assistance 119.36 under chapter 256B. To receive medical assistance payments, the 120.1schooldistrict must comply with relevant provisions of state 120.2 and federal statutes and regulations governing the medical 120.3 assistance program. 120.4 Subd. 2. [FUNDING.] Aschooldistrict that provides a 120.5 covered service to an eligible person and complies with relevant 120.6 requirements of the medical assistance programshall beis 120.7 entitled to receive payment for the service provided, including 120.8 that portion of the payment that will subsequently be reimbursed 120.9 by the federal government, in the same manner as other medical 120.10 assistance providers. The school district is not required to 120.11 provide matching funds or pay part of the costs of the service, 120.12 as long as the rate charged for the service does not exceed 120.13 medical assistance limits that apply to all medical assistance 120.14 providers. 120.15 Subd. 3. [CONTRACT FOR SERVICES.] Aschooldistrict may 120.16 contract for the provision of medical assistance-covered 120.17 services, and may contract with a third party agency to assist 120.18 in administering and billing for these services. 120.19 Subd. 4. [PRIVATE INSURERS.] Aschooldistrict may enroll 120.20 as a provider for insurance companies to provide covered special 120.21 education services to eligible persons. To receive payments, 120.22 the district must comply with relevant state and federal 120.23 statutes. A district may contract for services, and may 120.24 contract with a third party agency to assist in administering 120.25 and billing for these services. 120.26 Subd. 5. [NO REDUCTION IN REVENUE.] Aschooldistrict's 120.27 revenue for special education programsshallmust not be reduced 120.28 by any payments for medical assistance or insurance received 120.29 according to this section. 120.30 Sec. 122. Minnesota Statutes 1997 Supplement, section 120.31 126.22, subdivision 2, is amended to read: 120.32 Subd. 2. [ELIGIBLE PUPILS.] The following pupils are 120.33 eligible to participate in the graduation incentives program: 120.34 (a) any pupil under the age of 21 who: 120.35 (1) performs substantially below the performance level for 120.36 pupils of the same age in a locally determined achievement test; 121.1or121.2 (2) is at least one year behind in satisfactorily 121.3 completing coursework or obtaining credits for graduation;or121.4 (3) is pregnant or is a parent;or121.5 (4) has been assessed as chemically dependent;or121.6 (5) has been excluded or expelled according to sections 121.7 127.26 to 127.39;or121.8 (6) has been referred by a school district for enrollment 121.9 in an eligible program or a program pursuant to section 126.23; 121.10or121.11 (7) is a victim of physical or sexual abuse;or121.12 (8) has experienced mental health problems;or121.13 (9) has experienced homelessness sometime within six months 121.14 before requesting a transfer to an eligible program;or121.15 (10) speaks English as a second language or has limited 121.16 English proficiency; or 121.17 (11) has withdrawn from school or has been chronically 121.18 truant; or 121.19 (b) any person who is at least 21 years of age and who: 121.20 (1) has received fewer than 14 years of public or nonpublic 121.21 education, beginning at age 5; 121.22 (2) has not completed the requirements for a high school 121.23 diploma; and 121.24 (3) at the time of application, (i) is eligible for 121.25 reemployment insurance benefits or has exhausted the benefits, 121.26 (ii) is eligible for, or is receiving income maintenance and 121.27 support services, as defined in section 268.0111, subdivision 5, 121.28 or (iii) is eligible for services under the displaced homemaker 121.29 program, state wage-subsidy program, or any programs under the 121.30 federal Jobs Training Partnership Act or its successor. 121.31 Sec. 123. Minnesota Statutes 1997 Supplement, section 121.32 126.22, subdivision 3a, is amended to read: 121.33 Subd. 3a. [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 121.34 least 16 years of age, who is eligible under subdivision 2, 121.35 clause (a), and who has been enrolled only in a public school, 121.36 if the pupil has been enrolled in any school, during the year 122.1 immediately before transferring under this subdivision, may 122.2 transfer to any nonpublic school that has contracted with the 122.3 serving school district to provide nonsectarian educational 122.4 services.Such aThe school must enroll every eligible pupil 122.5 who seeks to transfer to the school under this program subject 122.6 to available space. 122.7 Sec. 124. Minnesota Statutes 1996, section 126.22, 122.8 subdivision 5, is amended to read: 122.9 Subd. 5. [DISSEMINATION OF INFORMATION.] Aschooldistrict 122.10shallmust disseminate information, developed by the department 122.11of children, families, and learning, about the graduation 122.12 incentives program to residents in the district who are under 122.13 the age of 21. 122.14 Sec. 125. Minnesota Statutes 1996, section 126.22, 122.15 subdivision 6, is amended to read: 122.16 Subd. 6. [DESEGREGATION PLANS.] Notwithstanding any 122.17 provision to the contrary, students may not enroll in a 122.18 nonresident district under this section if their enrollment in 122.19 anotherschooldistrict would result in a violation of a 122.20 district's desegregation plan, as mandated and approved by the 122.21 state board of education. 122.22 Sec. 126. Minnesota Statutes 1997 Supplement, section 122.23 126.22, subdivision 8, is amended to read: 122.24 Subd. 8. [ENROLLMENT VERIFICATION.] (a) For a pupil 122.25 attending an eligible program full time under subdivision 3, 122.26 paragraph (d), the departmentof children, families, and122.27learning shallmust pay 90 percent of the district's average 122.28 general education revenue less compensatory revenue to the 122.29 eligible program and ten percent of the district's average 122.30 general education revenue less compensatory revenue to the 122.31 resident district within 30 days after the eligible program 122.32 verifies enrollment using the form provided by the department. 122.33 For a pupil attending an eligible program part time, revenue 122.34 shall be reduced proportionately, according to the amount of 122.35 time the pupil attends the program, and the payments to the 122.36 eligible program and the resident district shall be reduced 123.1 accordingly. A pupil for whom payment is made according to this 123.2 section may not be counted by any district for any purpose other 123.3 than computation of general education revenue. If payment is 123.4 made for a pupil under this subdivision, aschooldistrict shall 123.5 not reimburse a program under section 126.23 for the same pupil. 123.6 Compensatory revenue shall be paid according to section 124A.22, 123.7 subdivision 3. 123.8 (b) The departmentof children, families, and learning123.9shallmust pay up to 100 percent of the revenue to the eligible 123.10 program if there is an agreement to that effect between the 123.11 school district and the eligible program. 123.12 Sec. 127. Minnesota Statutes 1997 Supplement, section 123.13 126.23, subdivision 1, is amended to read: 123.14 Subdivision 1. [AID.] If a pupil enrolls in an alternative 123.15 program, eligible under section 126.22, subdivision 3, paragraph 123.16 (d), or subdivision 3a, operated by a private organization that 123.17 has contracted with a school district to provide educational 123.18 services for eligible pupils under section 126.22, subdivision 123.19 2, the district contracting with the private organization must 123.20 reimburse the provider an amount equal to at least 90 percent of 123.21 the district's average general education less compensatory 123.22 revenue per pupil unit times the number of pupil units for 123.23 pupils attending the program. Compensatory revenue must be 123.24 allocated according to section 124A.28, subdivision 1a. For a 123.25 pupil attending the program part time, the revenue paid to the 123.26 programshallmust be reduced proportionately, according to the 123.27 amount of time the pupil attends the program, and revenue paid 123.28 to the district shall be reduced accordingly. Pupils for whom a 123.29 district provides reimbursement may not be counted by the 123.30 district for any purpose other than computation of general 123.31 education revenue. If payment is made to a district or program 123.32 for a pupil under this section, the departmentof children,123.33families, and learning shallmust not make a payment for the 123.34 same pupil under section 126.22, subdivision 8. 123.35 Sec. 128. Minnesota Statutes 1996, section 126.235, is 123.36 amended to read: 124.1 126.235 [EDUCATIONAL PROGRAM FOR PREGNANT MINORS AND MINOR 124.2 PARENTS.] 124.3 Upon request, aschooldistrict must make available to a 124.4 pregnant minor or a minor custodial parent an educational 124.5 program to enable the minor to earn a high school diploma. The 124.6 departmentof children, families, and learning shallmust 124.7 develop program designs and provide districts with technical 124.8 assistance. A district's educational program must use 124.9 appropriate community services and must recognize each pupil's 124.10 individual needs and parental responsibilities. The district 124.11shallmust designate at least one person to review quarterly 124.12 each pupil's progress in the program. 124.13 If a pupil receives social services according to section 124.14 257.33 or employment and training services according to section 124.15 256.736, the districtshallmust develop the pupil's educational 124.16 program in consultation with the providers of the services and 124.17 shall provide a liaison when necessary. The pupil may request 124.18 that an adult, selected by the pupil, assist in developing the 124.19 educational program. 124.20 Sec. 129. Minnesota Statutes 1996, section 126.239, 124.21 subdivision 1, is amended to read: 124.22 Subdivision 1. [TRAINING PROGRAMS FOR TEACHERS.] A 124.23 secondary teacher assigned by aschooldistrict to teach an 124.24 advanced placement or international baccalaureate course may 124.25 participate in a training program offered by the college board 124.26 or International Baccalaureate North America, Inc. The state 124.27 may pay a portion of the tuition, room, and board costs a 124.28 teacher incurs in participating in a training program. The 124.29 commissionerof children, families, and learningshall determine 124.30 application procedures and deadlines, and select teachers to 124.31 participate in the training program. The procedures determined 124.32 by the commissioner shall, to the extent possible, ensure that 124.33 advanced placement and international baccalaureate courses 124.34 become available in all parts of the state and that a variety of 124.35 course offerings are available in school districts. This 124.36 subdivision does not prevent teacher participation in training 125.1 programs offered by the college board or International 125.2 Baccalaureate North America, Inc., when tuition is paid by a 125.3 source other than the state. 125.4 Sec. 130. Minnesota Statutes 1996, section 126.262, 125.5 subdivision 3, is amended to read: 125.6 Subd. 3. [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 125.7 instructional personnel" means the following: 125.8 (a) A teacher licensed by the state board of teaching to 125.9 teach bilingual education or English as a second language; 125.10 (b) A teacher with an exemption from a teaching license 125.11 requirement pursuant to section 126.266 who is employed in a 125.12 school district's English as a second language or bilingual 125.13 education program; 125.14 (c) Any teacher as defined in section 125.03 who holds a 125.15 valid license from the state board of teaching, if the district 125.16 assures the departmentof children, families, and learningthat 125.17 the teacher will obtain the preservice and in-service training 125.18 the department considers necessary to enable the teacher to 125.19 provide appropriate service to pupils of limited English 125.20 proficiency. 125.21 Sec. 131. Minnesota Statutes 1996, section 126.262, 125.22 subdivision 6, is amended to read: 125.23 Subd. 6. [PRIMARY LANGUAGE.] "Primary language"ismeans a 125.24 language other than English which is the language normally used 125.25 by the child or the language which is spoken in the child's home 125.26 environment. 125.27 Sec. 132. Minnesota Statutes 1996, section 126.264, is 125.28 amended to read: 125.29 126.264 [RIGHTS OF PARENTS.] 125.30 Subdivision 1. [NOVICE.]No later thanWithin ten days 125.31 after the enrollment of any pupil in an instructional program 125.32 for limited English proficient students, theschooldistrict in 125.33 which the pupil residesshallmust notify the parentor guardian125.34 by mail. This noticeshallmust: 125.35 (a) Be in writing in English and in the primary language of 125.36 the pupil's parents; 126.1 (b) Inform the parents that their child has been enrolled 126.2 in an instructional program for limited English proficient 126.3 students; 126.4 (c) Contain a simple, nontechnical description of the 126.5 purposes, method and content of the program; 126.6 (d) Inform the parents that they have the right to visit 126.7 the educational program for limited English proficient students 126.8 in which their child is enrolled; 126.9 (e) Inform the parents of the time and manner in which to 126.10 request and receive a conference for the purpose of explaining 126.11 the nature and purpose of the program; and 126.12 (f) Inform the parents of their rights to withdraw their 126.13 child from an educational program for limited English proficient 126.14 students and the time and manner in which to do so. 126.15 The departmentof children, families, and learningshall, 126.16 at the request of theschooldistrict, prepare the notice in the 126.17 primary language of the parentor guardian. 126.18 Subd. 2. [WITHDRAWAL FROM PROGRAM.] Any parent whose child 126.19 is enrolled in an educational program for limited English 126.20 proficient students shall have the right, either at the time of 126.21 the original notification of enrollment or at the close of any 126.22 semester thereafter, to withdraw the child from the program by 126.23 providing written notice of this intent to the principal of the 126.24 school in which the child is enrolled or to the superintendent 126.25 of theschooldistrict in which the child resides. Nothing 126.26hereinin this section shall preclude a parent from reenrolling 126.27 a child of limited English proficiency in an educational program 126.28 for limited English proficient students. 126.29 Subd. 3. [PARENTAL INVOLVEMENT.] A district which receives 126.30 moneys pursuant to section 124.273shallmust encourage 126.31 involvement of parents of pupils enrolled in the educational 126.32 program for limited English proficient students in this 126.33 program. The district shall solicit the views of parents about 126.34 the program and its effects upon their children. 126.35 Sec. 133. Minnesota Statutes 1996, section 126.265, is 126.36 amended to read: 127.1 126.265 [GENERAL REQUIREMENTS FOR PROGRAMS.] 127.2 A district which receives aid pursuant to section 124.273 127.3shallmust comply with the following program requirements: 127.4 (a) To the extent possible, the districtshallmust avoid 127.5 isolating children of limited English proficiency for a 127.6 substantial part of the school day; and 127.7 (b) In predominantly nonverbal subjects, such as art, 127.8 music, and physical education, pupils of limited English 127.9 proficiency shall be permitted to participate fully and on an 127.10 equal basis with their contemporaries in public school classes 127.11 provided for these subjects. To the extent possible, theschool127.12 districtshallmust assure to pupils enrolled in a program for 127.13 limited English proficient students an equal and meaningful 127.14 opportunity to participate fully with other pupils in all 127.15 extracurricular activities. 127.16 Sec. 134. Minnesota Statutes 1996, section 126.266, 127.17 subdivision 1, is amended to read: 127.18 Subdivision 1. [EXEMPTIONS.] The commissionerof children,127.19families, and learningmay grant an exemption from the licensure 127.20 requirement in the hiring of teachers of English as a second 127.21 language or bilingual education teachers to aschooldistrict if 127.22 the commissioner finds that compliance would impose a hardship 127.23 upon the district in the securing of teachers for its 127.24 educational programs for limited English proficient students. 127.25 The commissionerof children, families, and learningshall 127.26 notify the board of teaching of any exemptions granted pursuant 127.27 to this section. 127.28 Sec. 135. Minnesota Statutes 1996, section 126.267, is 127.29 amended to read: 127.30 126.267 [TECHNICAL ASSISTANCE.] 127.31 The commissioner shall provide technical assistance to 127.32schooldistricts receiving aid pursuant to section 124.273 and 127.33 to post-secondary institutions for preservice and in-service 127.34 training for bilingual education teachers and English as a 127.35 second language teachers employed in educational programs for 127.36 limited English proficient students, teaching methods, 128.1 curriculum development, testing and testing mechanisms, and the 128.2 development of instructional materials for these educational 128.3 programs. 128.4 Sec. 136. Minnesota Statutes 1996, section 126.43, 128.5 subdivision 1, is amended to read: 128.6 Subdivision 1. [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 128.7 cultural exchange grant program is established to develop and 128.8 create opportunities for children and staff of different ethnic, 128.9 racial, and other cultural backgrounds to experience educational 128.10 and social exchange. Student and staff exchanges under this 128.11 section may only take place between a district with a 128.12 desegregation plan approved by the state board of education and 128.13 a district without a desegregation plan. Participating school 128.14 districts shall offer summer programs for credit with the goals 128.15 set forth in paragraphs(a)(b) to(d)(e). 128.16(a)(b) The programshallmust develop curriculum 128.17 reflective of particular ethnic, racial, and other cultural 128.18 aspects of various demographic groups in the state. 128.19(b)(c) The programshallmust develop immersion programs 128.20 that are coordinated with the programs offered in 128.21 paragraph(a)(b). 128.22(c)(d) The programshallmust create opportunities for 128.23 students from across the state to enroll in summer programs 128.24 inschooldistricts other than the one of residence, or in other 128.25 schools within their district of residence. 128.26(d)(e) The programshallmust create opportunities for 128.27 staff exchanges on a cultural basis. 128.28 Sec. 137. Minnesota Statutes 1996, section 126.43, 128.29 subdivision 2, is amended to read: 128.30 Subd. 2. [CULTURAL EXCHANGE GRANTS.] Aschooldistrict 128.31 together with a group ofschooldistricts, a cooperative 128.32 governmental unit, the center for arts and education, or a 128.33 post-secondary institution may apply for cultural exchange 128.34 grants. The commissionerof children, families, and learning128.35 shall determine grant recipients and may adopt application 128.36 guidelines. The grants must be competitively determined and 129.1 applicants must demonstrate: 129.2 (1) the capacity to develop a focused curriculum that 129.3 reflects the particular ethnic, racial, and other cultural 129.4 aspects of the community in which the school where the program 129.5 is offered is located; 129.6 (2) the capacity to develop immersion programs coordinated 129.7 with the curriculum developed in clause (1); 129.8 (3) the capacity to coordinate a cultural exchange program 129.9 with other curriculum programs to assure continuity in a pupil's 129.10 education; 129.11 (4) the capacity to maximize diversity of ethnic, racial, 129.12 and other cultural backgrounds of participants; 129.13 (5) that the application is jointly developed by 129.14 participants; and 129.15 (6) that the outcomes of the exchange program are clearly 129.16 articulated. 129.17 Sec. 138. Minnesota Statutes 1996, section 126.48, 129.18 subdivision 1, is amended to read: 129.19 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 129.20 language and culture education programsshall beare programs in 129.21 elementary and secondary schools enrolling American Indian 129.22 children designed: 129.23 (1) to make the curriculum more relevant to the needs, 129.24 interests, and cultural heritage of American Indian pupils; 129.25 (2) to provide positive reinforcement of the self-image of 129.26 American Indian pupils; and 129.27 (3) to develop intercultural awareness among pupils, 129.28 parents, and staff. Program components may include: 129.29 instruction in American Indian language, literature, history, 129.30 and culture; development of support components for staff, 129.31 including in-service training and technical assistance in 129.32 methods of teaching American Indian pupils; research projects, 129.33 including experimentation with and evaluation of methods of 129.34 relating to American Indian pupils; provision of personal and 129.35 vocational counseling to American Indian pupils; modification of 129.36 curriculum, instructional methods, and administrative procedures 130.1 to meet the needs of American Indian pupils; and establishment 130.2 of cooperative liaisons with nonsectarian nonpublic, community, 130.3 tribal or alternative schools offering curricula which reflect 130.4 American Indian culture. Districts offering programs may make 130.5 contracts for the provision of program components by 130.6 nonsectarian nonpublic, community, tribal or alternative 130.7 schools. These programs may also be provided as components of 130.8 early childhood and family education programs. 130.9 Sec. 139. Minnesota Statutes 1996, section 126.48, 130.10 subdivision 2, is amended to read: 130.11 Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American 130.12 Indian language and culture education programsshallmust be 130.13 voluntary. School districts and participating schoolsshall130.14 must make affirmative efforts to encourage participation. They 130.15 shall encourage parents to visit classes or come to school for a 130.16 conference explaining the nature of the program and provide 130.17 visits by school staff to parents' homes to explain the nature 130.18 of the program. 130.19 Sec. 140. Minnesota Statutes 1996, section 126.48, 130.20 subdivision 3, is amended to read: 130.21 Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 130.22 ENROLLMENT.] To the extent it is economically feasible, aschool130.23 district or participating school may make provision for the 130.24 voluntary enrollment of non-American Indian children in the 130.25 instructional components of an American Indian language and 130.26 culture education program in order that they may acquire an 130.27 understanding of the cultural heritage of the American Indian 130.28 children for whom that particular program is designed. However, 130.29 in determining eligibility to participate in a program, priority 130.30shallmust be given to American Indian children. American 130.31 Indian children and other children enrolled in an existing 130.32 nonpublic school system may be enrolled on a shared time basis 130.33 in American Indian language and culture education programs. 130.34 Sec. 141. Minnesota Statutes 1996, section 126.48, 130.35 subdivision 4, is amended to read: 130.36 Subd. 4. [LOCATION OF PROGRAMS.] American Indian language 131.1 and culture education programsshallmust be located in 131.2 facilities in which regular classes in a variety of subjects are 131.3 offered on a daily basis. 131.4 Sec. 142. Minnesota Statutes 1996, section 126.48, 131.5 subdivision 5, is amended to read: 131.6 Subd. 5. [ASSIGNMENT OF STUDENTS.]NoA school district or 131.7 participating schoolshallmust not, in providing these programs 131.8 , assign students to schools in a way which will have the effect 131.9 of promoting segregation of students by race, sex, color, or 131.10 national origin. 131.11 Sec. 143. Minnesota Statutes 1996, section 126.49, 131.12 subdivision 1, is amended to read: 131.13 Subdivision 1. [AMERICAN INDIAN LANGUAGE AND CULTURE 131.14 EDUCATION LICENSES.] The board of teachingshallmust grant 131.15 initial and continuing teaching licenses in American Indian 131.16 language and culture education that bear the same duration as 131.17 other initial and continuing licenses. The boardshallmust 131.18 grant licenses to persons who present satisfactory evidence that 131.19 they: 131.20 (a) Possess competence in an American Indian language or 131.21 possess unique qualifications relative to or knowledge and 131.22 understanding of American Indian history and culture; or 131.23 (b) Possess a bachelor's degree or other academic degree 131.24 approved by the board or meet such requirements as to course of 131.25 study and training as the board may prescribe, or possess such 131.26 relevant experience as the board may prescribe. 131.27 This evidence may be presented by affidavits, resolutions, 131.28 or by such other methods as the board may prescribe. 131.29 Individuals may present applications for licensure on their own 131.30 behalf or these applications may be submitted by the 131.31 superintendent or other authorized official of a school 131.32 district, participating school, or an American Indian school. 131.33 Sec. 144. Minnesota Statutes 1996, section 126.49, 131.34 subdivision 5, is amended to read: 131.35 Subd. 5. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 131.36 Any person licensed under this section shall be eligible for 132.1 employment by a school board or a participating school as a 132.2 teacher in an American Indian language and culture education 132.3 program in which the American Indian language or culture in 132.4 which the person is licensed is taught. A school district or 132.5 participating school may prescribe only those additional 132.6 qualifications for teachers licensed under this section as are 132.7 approved by the board of teaching. Any school board or 132.8 participating school upon request may be exempted from the 132.9 licensure requirements of this section in the hiring of one or 132.10 more American Indian language and culture education teachers for 132.11 any school year in which compliance would, in the opinion of the 132.12 commissionerof children, families, and learning, create a 132.13 hardship in the securing of the teachers. 132.14 Sec. 145. Minnesota Statutes 1996, section 126.49, 132.15 subdivision 6, is amended to read: 132.16 Subd. 6. [PERSONS SERVING UNDER EXEMPTIONS; LICENSURE; 132.17 TENURE.] An American Indian language and culture education 132.18 teacher serving under an exemption as provided in subdivision5132.19 6 shall be granted a license as soon as that teacher achieves 132.20 the qualifications foritthe license. Not more than one year 132.21 of service by an American Indian language and culture education 132.22 teacher under an exemption shall be credited to the teacher for 132.23 the purposes of section 125.12 and not more than two years shall 132.24 be credited for the purposes of section 125.17; and the one or 132.25 two years shall be deemed to precede immediately and be 132.26 consecutive with the year in which a teacher becomes licensed. 132.27 Sec. 146. Minnesota Statutes 1996, section 126.49, 132.28 subdivision 8, is amended to read: 132.29 Subd. 8. [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 132.30 all positions in these programs, school districts and 132.31 participating schools shall give preference to and make 132.32 affirmative efforts to seek, recruit, and employ persons who 132.33 share the culture of the American Indian children who are 132.34 enrolled in the program. The district or participating school 132.35 shall provide procedures for the involvement of the parent 132.36 advisory committees in designing the procedures for the 133.1 recruitment, screening and selection of applicants, provided133.2that nothing herein. This subdivision shall not be construed to 133.3 limit the school board's authority to hire and discharge 133.4 personnel. 133.5 Sec. 147. Minnesota Statutes 1996, section 126.50, is 133.6 amended to read: 133.7 126.50 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 133.8 In addition to employing American Indian language and 133.9 culture education teachers, each district or participating 133.10 school providing programs pursuant to sections 126.45 to 126.55 133.11 may employ teachers' aides. Teachers' aidesshallmust not be 133.12 employed for the purpose of supplanting American Indian language 133.13 and culture education teachers. 133.14 Any district or participating school which conducts 133.15 American Indian language and culture education programs pursuant 133.16 to sections 126.45 to 126.55shallmust employ one or more full- 133.17 time or part-time community coordinators if there are 100 or 133.18 more students enrolled in the program. Community coordinators 133.19 shall promote communication understanding, and cooperation 133.20 between the schools and the community and shall visit the homes 133.21 of children who are to be enrolled in an American Indian 133.22 language and culture education program in order to convey 133.23 information about the program. 133.24 Sec. 148. Minnesota Statutes 1996, section 126.501, is 133.25 amended to read: 133.26 126.501 [RECRUITING AND RETAINING INDIAN TEACHERS.] 133.27 This section applies to aschoolboard of aschooldistrict 133.28 in which there are at least ten American Indian children 133.29 enrolled. Theschoolboardshallmust actively recruit teacher 133.30 applicants who are American Indian from the time it is 133.31 reasonably expected that a position will become available until 133.32 the position is filled or September 1, whichever is earlier. 133.33 Notwithstanding section 125.12, subdivision 4, 6a, or 6b, 133.34 125.17, subdivisions 3 and 11, any other law to the contrary, or 133.35 any provision of a contract entered into after May 7, 1988, to 133.36 the contrary, when placing a teacher on unrequested leave of 134.1 absence, the board may retain a probationary teacher or a 134.2 teacher with less seniority in order to retain an American 134.3 Indian teacher. 134.4 Sec. 149. Minnesota Statutes 1997 Supplement, section 134.5 126.51, subdivision 1, is amended to read: 134.6 Subdivision 1. [PARENT COMMITTEE.] School boards and 134.7 American Indian schoolsshallmust provide for the maximum 134.8 involvement of parents of children enrolled in education 134.9 programs, including language and culture education programs, 134.10 programs for elementary and secondary grades, special education 134.11 programs, and support services. Accordingly, theschoolboard 134.12 of a school district in which there are ten or more American 134.13 Indian children enrolled and each American Indian schoolshall134.14 must establish a parent committee. If a committee whose 134.15 membership consists of a majority of parents of American Indian 134.16 children has been or is established according to federal, 134.17 tribal, or other state law, that committee may serve as the 134.18 committee required by this section andshall beis subject to, 134.19 at least, the requirements of this subdivision and subdivision 134.20 1a. 134.21 The parent committeeshallmust develop its recommendations 134.22 in consultation with the curriculum advisory committee required 134.23 by section 123.972, subdivision 3. This committeeshallmust 134.24 afford parents the necessary information and the opportunity 134.25 effectively to express their views concerning all aspects of 134.26 American Indian education and the educational needs of the 134.27 American Indian children enrolled in the school or program. The 134.28 committeeshallmust also address the need for adult education 134.29 programs for American Indian people in the community. The 134.30schoolboard or American Indian schoolshallmust ensure that 134.31 programs are planned, operated, and evaluated with the 134.32 involvement of and in consultation with parents of children 134.33 served by the programs. 134.34 Sec. 150. Minnesota Statutes 1996, section 126.51, 134.35 subdivision 1a, is amended to read: 134.36 Subd. 1a. [RESOLUTION OF CONCURRENCE.]Each year byPrior 135.1 to December 1, theschoolboard or American Indian schoolshall135.2 must submit to the departmentof children, families, and135.3learninga copy of a resolution adopted by the parent 135.4 committee. The copy must be signed by the chair of the 135.5 committee and must state whether the committee concurs with the 135.6 educational programs for American Indian children offered by the 135.7 school board or American Indian school. If the committee does 135.8 not concur with the educational programs, the reasons for 135.9 nonconcurrence and recommendations shall be submitted with the 135.10 resolution. By resolution, theschoolboardshallmust respond, 135.11 in cases of nonconcurrence, to each recommendation made by the 135.12 committee and state its reasons for not implementing the 135.13 recommendations. 135.14 Sec. 151. Minnesota Statutes 1996, section 126.51, 135.15 subdivision 2, is amended to read: 135.16 Subd. 2. [MEMBERSHIP.] The committeeshallmust be 135.17 composed of parents of children eligible to be enrolled in 135.18 American Indian education programs; secondary students eligible 135.19 to be served; American Indian language and culture education 135.20 teachers and aides; American Indian teachers; counselors; adult 135.21 American Indian people enrolled in educational programs; and 135.22 representatives from community groups. A majority of each 135.23 committeeshallmust be parents of children enrolled or eligible 135.24 to be enrolled in the programs. The number of parents of 135.25 American Indian and non-American Indian children shall reflect 135.26 approximately the proportion of children of those groups 135.27 enrolled in the programs. 135.28 Sec. 152. Minnesota Statutes 1996, section 126.52, 135.29 subdivision 5, is amended to read: 135.30 Subd. 5. [COMMUNITY INVOLVEMENT.] The state boardshall135.31 must provide for the maximum involvement of the state committees 135.32 on American Indian education, parents of American Indian 135.33 children, secondary students eligible to be served, American 135.34 Indian language and culture education teachers, American Indian 135.35 teachers, teachers' aides, representatives of community groups, 135.36 and persons knowledgeable in the field of American Indian 136.1 education, in the formulation of policy and procedures relating 136.2 to the administration of sections 126.45 to 126.55. 136.3 Sec. 153. Minnesota Statutes 1996, section 126.52, 136.4 subdivision 8, is amended to read: 136.5 Subd. 8. [TECHNICAL ASSISTANCE.] The commissioner shall 136.6 provide technical assistance toschooldistricts, schools and 136.7 post-secondary institutions for preservice and in-service 136.8 training for American Indian education teachers and teacher's 136.9 aides, teaching methods, curriculum development, testing and 136.10 testing mechanisms, and the development of materials for 136.11 American Indian education programs. 136.12 Sec. 154. Minnesota Statutes 1996, section 126.531, 136.13 subdivision 1, is amended to read: 136.14 Subdivision 1. [ESTABLISHMENT.] The state board of 136.15 education shall create one or more American Indian education 136.16 committees. Membersshallmust include representatives of 136.17 tribal bodies, community groups, parents of children eligible to 136.18 be served by the programs, American Indian administrators and 136.19 teachers, persons experienced in the training of teachers for 136.20 American Indian education programs, persons involved in programs 136.21 for American Indian children in American Indian schools, and 136.22 persons knowledgeable in the field of American Indian 136.23 education. Members shall be appointed so as to be 136.24 representative of significant segments of the population of 136.25 American Indians. 136.26 Sec. 155. Minnesota Statutes 1997 Supplement, section 136.27 126.531, subdivision 3, is amended to read: 136.28 Subd. 3. [EXPENSES.] Each committeeshallmust be 136.29 reimbursed for expenses according to section 15.059, subdivision 136.30 6. The state boardshallmust determine the membership terms 136.31 and the duration of each committee, which expire no later than 136.32 June 30, 2001. 136.33 Sec. 156. Minnesota Statutes 1996, section 126.54, 136.34 subdivision 1, is amended to read: 136.35 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 136.36 state board of educationshallmust make grants to no fewer than 137.1 six American Indian language and culture education programs. At 137.2 least three programsshallmust be in urban areas and at least 137.3 threeshallmust be on or near reservations. The board of a 137.4 local district, a participating school or a group of boards may 137.5 develop a proposal for grants in support of American Indian 137.6 language and culture education programs. Proposals may provide 137.7 for contracts for the provision of program components by 137.8 nonsectarian nonpublic, community, tribal, or alternative 137.9 schools. The commissioner shall prescribe the form and manner 137.10 of application for grants, and no grant shall be made for a 137.11 proposal not complying with the requirements of sections 126.45 137.12 to 126.55. The state boardshallmust submit all proposals to 137.13 the state advisory task force on American Indian language and 137.14 culture education programs for its recommendations concerning 137.15 approval, modification, or disapproval and the amounts of grants 137.16 to approved programs. 137.17 Sec. 157. Minnesota Statutes 1996, section 126.54, 137.18 subdivision 2, is amended to read: 137.19 Subd. 2. [PLANS.] Eachschooldistrict or participating 137.20 school submitting a proposal under subdivision 1shallmust 137.21 develop and submit with the proposal a plan which shall: 137.22 (a) Identify the measures to be used to meet the 137.23 requirements of sections 126.45 to 126.55; 137.24 (b) Identify the activities, methods and programs to meet 137.25 the identified educational needs of the children to be enrolled 137.26 in the program; 137.27 (c) Describe how district goals and objectives as well as 137.28 the objectives of sections 126.45 to 126.55 are to be achieved; 137.29 (d) Demonstrate that required and elective courses as 137.30 structured do not have a discriminatory effect within the 137.31 meaning of section 126.48, subdivision 5; 137.32 (e) Describe how each school program will be organized, 137.33 staffed, coordinated, and monitored; and 137.34 (f) Project expenditures for programs under sections 126.45 137.35 to 126.55. 137.36 Sec. 158. Minnesota Statutes 1996, section 126.54, 138.1 subdivision 3, is amended to read: 138.2 Subd. 3. [ADDITIONAL REQUIREMENTS.] Eachschooldistrict 138.3 receiving a grant under this sectionshallmust each year 138.4 conduct a count of American Indian children in the schools of 138.5 the district; test for achievement; identify the extent of other 138.6 educational needs of the children to be enrolled in the American 138.7 Indian language and culture education program; and classify the 138.8 American Indian children by grade, level of educational 138.9 attainment, age and achievement. Participating schoolsshall138.10 must maintain records concerning the needs and achievements of 138.11 American Indian children served. 138.12 Sec. 159. Minnesota Statutes 1996, section 126.54, 138.13 subdivision 4, is amended to read: 138.14 Subd. 4. [NONDISCRIMINATION; TESTING.] In accordance with 138.15 recognized professional standards, all testing and evaluation 138.16 materials and procedures utilized for the identification, 138.17 testing, assessment and classification of American Indian 138.18 childrenshallmust be selected and administered so as not to be 138.19 racially or culturally discriminatory andshallmust be valid 138.20 for the purpose of identifying, testing, assessing, and 138.21 classifying American Indian children. 138.22 Sec. 160. Minnesota Statutes 1996, section 126.54, 138.23 subdivision 5, is amended to read: 138.24 Subd. 5. [RECORDS.] Participating schools andschool138.25 districtsshallkeep records and afford access to them as the 138.26 commissioner finds necessary to ensure that American Indian 138.27 language and culture education programs are implemented in 138.28 conformity with sections 126.45 to 126.55. Each school district 138.29 or participating schoolshallmust keep accurate, detailed, and 138.30 separate revenue and expenditure accounts for pilot American 138.31 Indian language and culture education programs funded under this 138.32 section. 138.33 Sec. 161. Minnesota Statutes 1996, section 126.54, 138.34 subdivision 6, is amended to read: 138.35 Subd. 6. [MONEY FROM OTHER SOURCES.] Aschooldistrict or 138.36 participating school providing American Indian language and 139.1 culture education programs shall be eligible to receive moneys 139.2 for these programs from other government agencies and from 139.3 private sources when the moneys are available. 139.4 Sec. 162. Minnesota Statutes 1996, section 126.56, 139.5 subdivision 6, is amended to read: 139.6 Subd. 6. [INFORMATION.] The higher education services 139.7 office, in cooperation with the academic excellence foundation, 139.8shallmust assemble and distribute information about 139.9 scholarships and eligible programs. 139.10 Sec. 163. [REPEALER.] 139.11 (a) Minnesota Statutes 1996, sections 124C.55; 124C.56; 139.12 124C.57; and 124C.58, are repealed. 139.13 (b) Minnesota Statutes 1996, section 124.312, as amended by 139.14 Laws 1997, First Special Session chapter 4, article 2, sections 139.15 13 and 14; Minnesota Statutes 1997 Supplement, sections 124.313; 139.16 and 124.314, are repealed effective for revenue for fiscal year 139.17 1999. 139.18 Sec. 164. [INSTRUCTION TO REVISOR.] 139.19 The revisor of statutes shall renumber each section of 139.20 Minnesota Statutes listed in column A with the number listed in 139.21 column B. The revisor shall also make necessary cross-reference 139.22 changes consistent with the renumbering. 139.23 Column A Column B 139.24 120.03, subd. 1 120B.02, subd. 1 139.25 subd. 5 subd. 2 139.26 120.17, subd. 1 120B.03, subd. 1 139.27 subd. 1b subd. 2 139.28 subd. 2 subd. 3 139.29 subd. 3 subd. 4 139.30 subd. 3a subd. 5 139.31 subd. 3b subd. 6 139.32 subd. 3d subd. 7 139.33 subd. 4 subd. 8 139.34 subd. 4a subd. 9 139.35 subd. 5 subd. 10 139.36 subd. 5a subd. 11 140.1 subd. 6 subd. 12 140.2 subd. 7 subd. 13 140.3 subd. 7a subd. 14 140.4 subd. 8a subd. 15 140.5 subd. 9 subd. 16 140.6 subd. 10 subd. 17 140.7 subd. 11 subd. 18 140.8 subd. 15 subd. 19 140.9 subd. 16 subd. 20 140.10 subd. 18 subd. 21 140.11 subd. 19 subd. 22 140.12 120.1701, subd. 1 120B.04, subd. 1 140.13 subd. 2 subd. 2 140.14 subd. 3 subd. 3 140.15 subd. 4 subd. 4 140.16 subd. 5 subd. 5 140.17 subd. 6 subd. 6 140.18 subd. 7 subd. 7 140.19 subd. 8 subd. 8 140.20 subd. 8a subd. 9 140.21 subd. 9 subd. 10 140.22 subd. 10 subd. 11 140.23 subd. 11 subd. 12 140.24 subd. 12 subd. 13 140.25 subd. 13 subd. 14 140.26 subd. 14 subd. 15 140.27 subd. 15 subd. 16 140.28 subd. 16 subd. 17 140.29 subd. 17 subd. 18 140.30 subd. 18 subd. 19 140.31 subd. 19 subd. 20 140.32 subd. 20 subd. 21 140.33 subd. 21 subd. 22 140.34 subd. 22 subd. 23 140.35 120.172 120B.08 140.36 120.173 120B.09 141.1 120.181 120B.10 141.2 120.1811 120B.11 141.3 120.182 120B.12 141.4 120.183 120B.13 141.5 120.185 120B.14 141.6 126.237 120B.15 141.7 124.32, subd. 2b 120B.20, subd. 1 141.8 subd. 4 subd. 2 141.9 subd. 6 subd. 3 141.10 subd. 7 subd. 4 141.11 subd. 8 subd. 5 141.12 subd. 10 subd. 6 141.13 subd. 12 subd. 7 141.14 124.3201 120B.21 141.15 124.321 120B.22 141.16 124.322, subd. 1 120B.23, subd. 1 141.17 subd. 1a subd. 2 141.18 subd. 5 subd. 3 141.19 124.323 120B.24 141.20 124.90 120B.26 141.21 120.187 120B.30 141.22 120.188 120B.31 141.23 120.189 120B.32 141.24 120.190 120B.33 141.25 126.261 120B.40 141.26 126.262 120B.41 141.27 126.264 120B.42 141.28 126.265 120B.43 141.29 126.266 120B.44 141.30 126.267 120B.45 141.31 126.269 120B.46 141.32 124.273, subd. 1c 120B.47, subd. 1 141.33 subd. 1d subd. 2 141.34 subd. 1e subd. 3 141.35 subd. 1f subd. 4 141.36 subd. 1g subd. 5 142.1 subd. 3 subd. 6 142.2 subd. 4 subd. 7 142.3 subd. 5 subd. 8 142.4 subd. 6 subd. 9 142.5 subd. 7 subd. 10 142.6 124.3111 120B.50 142.7 124.311 120B.51 142.8 126.22, subd. 1 120B.57, subd. 1 142.9 subd. 2 subd. 2 142.10 subd. 3 subd. 3 142.11 subd. 3a subd. 4 142.12 subd. 4 subd. 5 142.13 subd. 5 subd. 6 142.14 subd. 6 subd. 7 142.15 subd. 7 subd. 8 142.16 subd. 8 subd. 9 142.17 subd. 9 subd. 10 142.18 126.23 120B.58 142.19 124.225 120B.59 142.20 126.235 120B.61 142.21 124.573, subd. 1 120B.66, subd. 1 142.22 subd. 2 subd. 2 142.23 subd. 2b subd. 3 142.24 subd. 2e subd. 4 142.25 subd. 2f subd. 5 142.26 subd. 3 subd. 6 142.27 subd. 3a subd. 7 142.28 subd. 5a subd. 8 142.29 124.574, subd. 1 120B.67, subd. 1 142.30 subd. 2c subd. 2 142.31 subd. 2d subd. 3 142.32 subd. 2e subd. 4 142.33 subd. 2f subd. 5 142.34 subd. 2g subd. 6 142.35 subd. 2h subd. 7 142.36 subd. 5 subd. 8 143.1 subd. 6 subd. 9 143.2 subd. 7 subd. 10 143.3 subd. 9 subd. 11 143.4 126.45 120B.70 143.5 126.46 120B.71 143.6 126.47 120B.72 143.7 126.48 120B.73 143.8 126.49, subd. 1 120B.74, subd. 1 143.9 subd. 2 subd. 2 143.10 subd. 2a subd. 3 143.11 subd. 3 subd. 4 143.12 subd. 4 subd. 5 143.13 subd. 5 subd. 6 143.14 subd. 6 subd. 7 143.15 subd. 7 subd. 8 143.16 subd. 8 subd. 9 143.17 126.50 120B.75 143.18 126.501 120B.76 143.19 126.51, subd. 1 120B.77, subd. 1 143.20 subd. 1a subd. 2 143.21 subd. 2 subd. 3 143.22 subd. 4 subd. 4 143.23 126.52, subd. 5 120B.78, subd. 1 143.24 subd. 8 subd. 2 143.25 subd. 9 subd. 3 143.26 126.531 120B.79 143.27 126.54 120B.80 143.28 126.55 120B.81 143.29 124.86 120B.82 143.30 124.48, subd. 1 120B.83, subd. 1 143.31 subd. 3 subd. 2 143.32 124.481 120B.84 143.33 126.43 120B.86 143.34 124.315 120B.88 143.35 124.227 120B.89 143.36 120.064, subd. 1 129B.90, subd. 1 144.1 subd. 2 subd. 2 144.2 subd. 3 subd. 3 144.3 subd. 4 subd. 4 144.4 subd. 4a subd. 5 144.5 subd. 5 subd. 6 144.6 subd. 7 subd. 7 144.7 subd. 8 subd. 8 144.8 subd. 9 subd. 9 144.9 subd. 10 subd. 10 144.10 subd. 11 subd. 11 144.11 subd. 12 subd. 12 144.12 subd. 13 subd. 13 144.13 subd. 14 subd. 14 144.14 subd. 14a subd. 15 144.15 subd. 15 subd. 16 144.16 subd. 16 subd. 17 144.17 subd. 17 subd. 18 144.18 subd. 18 subd. 19 144.19 subd. 19 subd. 20 144.20 subd. 20 subd. 21 144.21 subd. 20a subd. 22 144.22 subd. 21 subd. 23 144.23 subd. 22 subd. 24 144.24 subd. 23 subd. 25 144.25 subd. 24 subd. 26 144.26 124.248, subd. 1 120B.91, subd. 1 144.27 subd. 1a subd. 2 144.28 subd. 2 subd. 3 144.29 subd. 2a subd. 4 144.30 subd. 3 subd. 5 144.31 subd. 4 subd. 6 144.32 subd. 5 subd. 7 144.33 subd. 6 subd. 8 144.34 126.239 120B.92 144.35 123.3513 120B.93 144.36 123.3514, subd. 1 120B.94, subd. 1 145.1 subd. 2 subd. 2 145.2 subd. 3 subd. 3 145.3 subd. 3a subd. 4 145.4 subd. 4 subd. 5 145.5 subd. 4a subd. 6 145.6 subd. 4b subd. 7 145.7 subd. 4c subd. 8 145.8 subd. 4d subd. 9 145.9 subd. 4e subd. 10 145.10 subd. 5 subd. 11 145.11 subd. 6 subd. 12 145.12 subd. 6a subd. 13 145.13 subd. 6b subd. 14 145.14 subd. 6c subd. 15 145.15 subd. 6d subd. 16 145.16 subd. 6e subd. 17 145.17 subd. 7 subd. 18 145.18 subd. 7a subd. 19 145.19 subd. 7b subd. 20 145.20 subd. 8 subd. 21 145.21 subd. 9 subd. 22 145.22 subd. 10 subd. 23 145.23 subd. 11 subd. 24 145.24 subd. 11a subd. 25 145.25 120.80 120B.95 145.26 126.56, subd. 1 120B.96, subd. 1 145.27 subd. 2 subd. 2 145.28 subd. 3 subd. 3 145.29 subd. 4 subd. 4 145.30 subd. 4a subd. 5 145.31 subd. 5 subd. 6 145.32 subd. 6 subd. 7 145.33 subd. 7 subd. 8 145.34 ARTICLE 3 145.35 CHAPTER 120C 145.36 COMMUNITY EDUCATION 146.1 Section 1. [120C.01] [DEFINITIONS.] 146.2 For the purposes of this chapter, the words defined in 146.3 section 120.02 have the same meaning. 146.4 Sec. 2. Minnesota Statutes 1996, section 121.201, is 146.5 amended to read: 146.6 121.201 [HEARING IMPAIRED EDUCATIONAL SUPPORT SERVICES.] 146.7 Subdivision 1. [RESPONSIBILITY OF COMMISSIONER.] The 146.8 commissioner shall coordinate and may pay for support services 146.9 for hearing impaired persons to assure access to educational 146.10 opportunities. Services may be provided to adult students who 146.11 are hearing impaired and(a)(1) have been denied access to 146.12 educational opportunities because of the lack of support 146.13 services or(b)(2) are presently enrolled or(c)(3) are 146.14 contemplating enrollment in an educational program and would 146.15 benefit from support services. The commissioner shall also be 146.16 responsible for conducting in-service training for public and 146.17 private agencies regarding the needs of hearing impaired persons 146.18 in the adult education system. 146.19 Subd. 2. [SUPPORT SERVICES.] The state board may pay 146.20 school districts or public or private community agencies for the 146.21 following support services: 146.22(a)(1) interpreter services to provide translation for an 146.23 individual or a group of students; or 146.24(b)(2) notetaker services to convert spoken language to 146.25 written language when the student must maintain visual contact 146.26 with other persons such as an interpreter or instructor. 146.27 Subd. 3. [PROGRAMS INCLUDED.] Support services may be 146.28 provided for: 146.29(a)(1) local school district adult education programs; 146.30(b)(2) adult technical college programs; and 146.31(c)(3) avocational education programs sponsored by public 146.32 or private community agencies. 146.33 Sec. 3. Minnesota Statutes 1996, section 121.203, 146.34 subdivision 1, is amended to read: 146.35 Subdivision 1. [AIDS PROGRAM.] The commissioner of 146.36 children, families, and learning, in consultation with the 147.1 commissioner of health, shall assist districts in developing and 147.2 implementing a program to prevent and reduce the risk of 147.3 acquired immune deficiency syndrome. Each districtshallmust 147.4 have a program that includes at least: 147.5 (1) planning materials, guidelines, and other technically 147.6 accurate and updated information; 147.7 (2) a comprehensive, technically accurate, and updated 147.8 curriculum; 147.9 (3) cooperation and coordination among districts and SCs; 147.10 (4) a targeting of adolescents, especially those who may be 147.11 at high risk of contracting AIDS, for prevention efforts; 147.12 (5) involvement of parents and other community members; 147.13 (6) in-service training for appropriate district staff and 147.14 school board members; 147.15 (7) collaboration with state agencies and organizations 147.16 having an AIDS prevention or AIDS risk reduction program; 147.17 (8) collaboration with local community health services, 147.18 agencies and organizations having an AIDS prevention or AIDS 147.19 risk reduction program; and 147.20 (9) participation by state and local student organizations. 147.21 The department may provide assistance at a neutral site to 147.22 a nonpublic school participating in a district's program. 147.23 District programs must not conflict with the health and wellness 147.24 curriculum developed under Laws 1987, chapter 398, article 5, 147.25 section 2, subdivision 7. 147.26 If a district fails to develop and implement a program to 147.27 prevent and reduce the risk of AIDS, the departmentshallmust 147.28 assist theSCservice cooperative in the region serving that 147.29 district to develop or implement the program. 147.30 Sec. 4. Minnesota Statutes 1997 Supplement, section 147.31 121.615, subdivision 2, is amended to read: 147.32 Subd. 2. [CREATION OF FOUNDATION.] There is created the 147.33 Minnesota school-to-work student organization foundation. The 147.34 purpose of the foundationshall beis to promote vocational 147.35 student organizations and applied leadership opportunities in 147.36 Minnesota public and nonpublic schools through public-private 148.1 partnerships. The foundationshall beis a nonprofit 148.2 organization. The board of directors of the foundation and 148.3 activities of the foundation are under the direction of the 148.4 state board of education. 148.5 Sec. 5. Minnesota Statutes 1997 Supplement, section 148.6 121.615, subdivision 3, is amended to read: 148.7 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 148.8 the school-to-work student organization foundationshall consist148.9 consists of: 148.10 (1) seven members appointed by the board of directors of 148.11 the school-to-work student organizations and chosen so that each 148.12 represents one of the following career areas: agriculture, 148.13 family and consumer sciences, service occupations, health 148.14 occupations, marketing, business, and technical/industrial; 148.15 (2) seven members from business, industry, and labor 148.16 appointed by the governor to staggered terms and chosen so that 148.17 each represents one of the following career areas: agriculture, 148.18 family and consumer sciences, service occupations, health 148.19 occupations, marketing, business, and technical/industrial; 148.20 (3) five students or alumni of school-to-work student 148.21 organizations representing diverse career areas, three from 148.22 secondary student organizations, and two from post-secondary 148.23 student organizations. The students or alumni shall be 148.24 appointed by the criteria and process agreed upon by the 148.25 executive directors of the student-to-work organizations; and 148.26 (4) four members from education appointed by the governor 148.27 to staggered terms and chosen so that each represents one of the 148.28 following groups: school district level administrators, 148.29 secondary school administrators, middle school administrators, 148.30 and post-secondary administrators. 148.31 Executive directors of vocational education student 148.32 organizations are ex officio, nonvoting members of the board. 148.33 Sec. 6. Minnesota Statutes 1997 Supplement, section 148.34 121.615, subdivision 9, is amended to read: 148.35 Subd. 9. [PRIVATE FUNDING.] The foundationshallmust seek 148.36 private resources to supplement the available public money. 149.1 Individuals, businesses, and other organizations may contribute 149.2 to the foundation in any manner specified by the board of 149.3 directors. All money received shall be administered by the 149.4 board of directors. 149.5 Sec. 7. Minnesota Statutes 1997 Supplement, section 149.6 121.615, subdivision 10, is amended to read: 149.7 Subd. 10. [REPORT.] The board of directors of the 149.8 foundationshallmust submit an annual report on the progress of 149.9 its activities to the state board of education and to the board 149.10 of trustees of the Minnesota state colleges and universities. 149.11 The annual report shall contain a financial report for the 149.12 preceding year. The foundation shall submit a biennium report 149.13 to the legislature before February 15, in the odd-numbered year. 149.14 Sec. 8. Minnesota Statutes 1996, section 121.615, 149.15 subdivision 11, is amended to read: 149.16 Subd. 11. [APPROPRIATION.]There is annually appropriated149.17to the foundationAll the amounts received by the foundation 149.18 pursuant to this section are annually appropriated to the 149.19 foundation. 149.20 Sec. 9. Minnesota Statutes 1996, section 121.704, is 149.21 amended to read: 149.22 121.704 [YOUTH WORKS PROGRAM.] 149.23 The youth works program is established to fulfill the 149.24 purposes of section 121.701. The youth works programshallmust 149.25 supplement existing programs and services. The programshall149.26 must not displace existing programs and services, existing 149.27 funding of programs or services, or existing employment and 149.28 employment opportunities. No eligible organization may 149.29 terminate, layoff, or reduce the hours of work of an employee to 149.30 place or hire a program participant. No eligible organization 149.31 may place or hire an individual for a project if an employee is 149.32 on layoff from the same or a substantially equivalent position. 149.33 Sec. 10. Minnesota Statutes 1996, section 121.705, 149.34 subdivision 2, is amended to read: 149.35 Subd. 2. [GRANT AUTHORITY.] The commission and, beginning 149.36 January 1, 1997, the councilshallmust use any state 150.1 appropriation and any available federal funds, including any 150.2 grant received under federal law, to award grants to establish 150.3 programs for youth works meeting the requirements of section 150.4 121.706. At least one grant each must be available for a 150.5 metropolitan proposal, a rural proposal, and a statewide 150.6 proposal. If a portion of the suburban metropolitan area is not 150.7 included in the metropolitan grant proposal, the statewide grant 150.8 proposal must incorporate at least one suburban metropolitan 150.9 area. In awarding grants, the commission and, beginning January 150.10 1, 1997, the council may select at least one residential 150.11 proposal and one nonresidential proposal, provided the proposals 150.12 meet or exceed the criteria in section 121.706. 150.13 Sec. 11. Minnesota Statutes 1996, section 121.706, is 150.14 amended to read: 150.15 121.706 [GRANT APPLICATIONS.] 150.16 Subdivision 1. [APPLICATIONS REQUIRED.] An organization 150.17 seeking federal or state grant money under sections 121.704 to 150.18 121.709 shall prepare and submit to the commission and, 150.19 beginning January 1, 1997, the council an application that meets 150.20 the requirements of this section. The commission and, beginning 150.21 January 1, 1997, the councilshallmust develop, and the 150.22 applying organizationsshallmust comply with, the form and 150.23 manner of the application. 150.24 Subd. 2. [APPLICATION CONTENT.] An applicant on its 150.25 applicationshallmust: 150.26 (1) propose a program to provide participants the 150.27 opportunity to perform community service to meet specific unmet 150.28 community needs, and participate in classroom, work-based, and 150.29 service-learning; 150.30 (2) assess the community's unmet educational, human, 150.31 environmental, and public safety needs, the resources and 150.32 programs available for meeting those needs, and how young people 150.33 participated in assessing community needs; 150.34 (3) describe the educational component of the program, 150.35 including classroom hours per week, classroom time for 150.36 participants to reflect on the program experience, and 151.1 anticipated academic outcomes related to the service experience; 151.2 (4) describe the work to be performed, the ratio of youth 151.3 participants to crew leaders and mentors, and the expectations 151.4 and qualifications for crew leaders and mentors; 151.5 (5) describe local funds or resources available to meet the 151.6 match requirements of section 121.709; 151.7 (6) describe any funds available for the program from 151.8 sources other than the requested grant; 151.9 (7) describe any agreements with local businesses to 151.10 provide participants with work-learning opportunities and 151.11 mentors; 151.12 (8) describe any agreement with local post-secondary 151.13 educational institutions to offer participants course credits 151.14 for their community service-learning experience; 151.15 (9) describe any agreement with a local high school or an 151.16 alternative learning center to provide remedial education, 151.17 credit for community service work and work-based learning, or 151.18 graduate equivalency degrees; 151.19 (10) describe any pay for service or other program delivery 151.20 mechanism that will provide reimbursement for benefits conferred 151.21 or recover costs of services participants perform; 151.22 (11) describe how local resources will be used to provide 151.23 support and assistance for participants to encourage them to 151.24 continue with the program, fulfill the terms of the contract, 151.25 and remain eligible for any postservice benefit; 151.26 (12) describe the arbitration mechanism for dispute 151.27 resolution required under section 121.707, subdivision 2; 151.28 (13) describe involvement of community leaders in 151.29 developing broad-based support for the program; 151.30 (14) describe the consultation and sign-off process to be 151.31 used with any local labor organization representing employees in 151.32 the area engaged in work similar to that proposed for the 151.33 program to ensure that no current employees or available 151.34 employment positions will be displaced by program participants; 151.35 (15) certify to the commission and, beginning January 1, 151.36 1997, the council, and to any certified bargaining 152.1 representatives representing employees of the applying 152.2 organization that the project will not decrease employment 152.3 opportunities that would be available without the project; will 152.4 not displace current employees including any partial 152.5 displacement in the form of reduced hours of work other than 152.6 overtime, wages, employment benefits, or regular seasonal work; 152.7 will not impair existing labor agreements; and will not result 152.8 in the substitution of project funding for preexisting funds or 152.9 sources of funds for ongoing work; 152.10 (16) describe the length of the required service period, 152.11 which may not be less than six months or more than two years, a 152.12 method to incorporate a participant's readiness to advance or 152.13 need for postservice financial assistance into individual 152.14 service requirements, and any opportunity for participating part 152.15 time or in another program; 152.16 (17) describe a program evaluation plan that contains 152.17 cost-effectiveness measures, measures of participant success 152.18 including educational accomplishments, job placements, community 152.19 contributions, and ongoing volunteer activities, outcome 152.20 measures based on a preprogram and postprogram survey of 152.21 community rates of arrest, incarceration, teenage pregnancy, and 152.22 other indicators of youth in trouble, and a list of local 152.23 resources dedicated to reducing these rates; 152.24 (18) describe a three-year financial plan for maintaining 152.25 the program; 152.26 (19) describe the role of local youth in developing all 152.27 aspects of the grant proposal; and 152.28 (20) describe the process by which the local private 152.29 industry council participated in, and reviewed the grant 152.30 application. 152.31 Sec. 12. Minnesota Statutes 1996, section 121.707, 152.32 subdivision 3, is amended to read: 152.33 Subd. 3. [POSTSERVICE BENEFIT.] (a) Each eligible 152.34 organizationshallmust agree to provide to every participant 152.35 who fulfills the terms of a contract under section 121.707, 152.36 subdivision 2, a nontransferable postservice benefit. The 153.1 benefit must be not less than $4,725 per year of full-time 153.2 service or prorated for part-time service or for partial service 153.3 of at least 900 hours. Upon signing a contract under section 153.4 121.707, subdivision 2, each eligible organizationshallmust 153.5 deposit funds to cover the full amount of postservice benefits 153.6 obligated, except for national education awards that are 153.7 deposited in the national service trust fund. Funds encumbered 153.8 in fiscal years 1994 and 1995 for postservice benefitsshall153.9 must be available until the participants for whom the funds were 153.10 encumbered are no longer eligible to draw benefits. 153.11 (b) Nothing in this subdivision prevents a grantee 153.12 organization from using funds from nonfederal or nonstate 153.13 sources to increase the value of postservice benefits above the 153.14 value described in paragraph (a). 153.15 (c) The higher education services officeshallmust 153.16 establish an account for depositing funds for postservice 153.17 benefits received from eligible organizations. If a participant 153.18 does not complete the term of service or, upon successful 153.19 completion of the program, does not use a postservice benefit 153.20 according to subdivision 4 within seven years, the amount of the 153.21 postservice benefitshallmust be refunded to the eligible 153.22 organization or, at the organization's discretion, dedicated to 153.23 another eligible participant. Interest earned on funds 153.24 deposited in the postservice benefit account is appropriated to 153.25 the higher education services office for the costs of 153.26 administering the postservice benefits accounts. 153.27 (d) The stateshallmust provide an additional postservice 153.28 benefit to any participant who successfully completes the 153.29 program. The benefit must be a credit of five points to be 153.30 added to the competitive open rating of a participant who 153.31 obtains a passing grade on a civil service examination under 153.32 chapter 43A. The benefit is available for five years after 153.33 completing the community service. 153.34 Sec. 13. Minnesota Statutes 1996, section 121.707, 153.35 subdivision 4, is amended to read: 153.36 Subd. 4. [USES OF POSTSERVICE BENEFITS.] (a) A postservice 154.1 benefit for a participant provided under subdivision 3, 154.2 paragraph (a), (b), or (c), must be available for seven years 154.3 after completing the program and may only be used for: 154.4 (1) paying a student loan; 154.5 (2) costs of attending an institution of higher education; 154.6 or 154.7 (3) expenses incurred by a student in an approved youth 154.8 apprenticeship program under chapter 126B, or in a registered 154.9 apprenticeship program approved by the department of labor and 154.10 industry. 154.11 Financial assistance provided under this subdivision must be in 154.12 the form of vendor payments whenever possible. Any postservice 154.13 benefits provided by federal funds or vouchers may be used as a 154.14 downpayment on, or closing costs for, purchasing a first home. 154.15 (b) Postservice benefits are to be used to develop skills 154.16 required in occupations where numbers of jobs are likely to 154.17 increase. The commission, in consultation with the workforce 154.18 development council, and beginning January 1, 1997, the 154.19 workforce development council,shallmust determine how the 154.20 benefits may be used in order to best prepare participants with 154.21 skills that build on their service-learning and equip them for 154.22 meaningful employment. 154.23 (c) The postservice benefitshallmust not be included in 154.24 determining financial need when establishing eligibility or 154.25 award amounts for financial assistance programs under chapter 154.26 136A. 154.27 Sec. 14. Minnesota Statutes 1996, section 121.707, 154.28 subdivision 5, is amended to read: 154.29 Subd. 5. [LIVING ALLOWANCE.] (a) A participant in a 154.30 full-time community service program shall receive a monthly 154.31 stipend of not less than $500. An eligible organization may 154.32 provide participants with additional amounts from nonstate 154.33 sources. The amount of the living allowance may be prorated for 154.34 part-time participants. 154.35 (b) Nothing in this subdivision requires an existing 154.36 program to decrease any stipend, salary, or living allowance 155.1 provided to a participant under the program. 155.2 (c) In addition to the living allowance provided under 155.3 paragraph (a), a grantee organization shall provide health and 155.4 child care coverage to each participant in a full-time youth 155.5 works program who does not otherwise have access to health or 155.6 child care coverage. The stateshallmust include the cost of 155.7 group health and child care coverage in the grant to the 155.8 eligible organization. 155.9 Sec. 15. Minnesota Statutes 1996, section 121.707, 155.10 subdivision 6, is amended to read: 155.11 Subd. 6. [PROGRAM TRAINING.] (a) The commission and, 155.12 beginning January 1, 1997, the councilshallmust, within 155.13 available resources, ensure an opportunity for each participant 155.14 to have three weeks of training in a residential setting. If 155.15 offered, each training session must: 155.16 (1) orient each participant in the nature, philosophy, and 155.17 purpose of the program; 155.18 (2) build an ethic of community service through general 155.19 community service training; and 155.20 (3) provide additional training as it determines necessary. 155.21 (b) Each grantee organization shall also train participants 155.22 in skills relevant to the community service opportunity. 155.23 Sec. 16. Minnesota Statutes 1996, section 121.707, 155.24 subdivision 7, is amended to read: 155.25 Subd. 7. [TRAINING AND EDUCATION REQUIREMENTS.] Each 155.26 grantee organizationshallmust assess the educational level of 155.27 each entering participant. Each grantee shall work to enhance 155.28 the educational skills of each participant. The commission and, 155.29 beginning January 1, 1997, the council may coordinate or 155.30 contract with educational institutions or other providers for 155.31 educational services and evaluation. All grantees shall give 155.32 priority to educating and training participants who do not have 155.33 a high school diploma or its equivalent, or who cannot afford 155.34 post-secondary training and education. 155.35 Sec. 17. Minnesota Statutes 1996, section 121.708, is 155.36 amended to read: 156.1 121.708 [PRIORITY.] 156.2 The commission and, beginning January 1, 1997, the council 156.3shallmust give priority to an eligible organization proposing a 156.4 program that meets the goals of sections 121.704 to 121.707, and 156.5 that: 156.6 (1) involves youth in a meaningful way in all stages of the 156.7 program, including assessing community needs, preparing the 156.8 application, and assuming postservice leadership and mentoring 156.9 responsibilities; 156.10 (2) serves a community with significant unmet needs; 156.11 (3) provides an approach that is most likely to reduce 156.12 arrest rates, incarceration rates, teenage pregnancy, and other 156.13 indicators of troubled youth; 156.14 (4) builds linkages with existing, successful programs; and 156.15 (5) can be operational quickly. 156.16 Sec. 18. Minnesota Statutes 1996, section 121.710, 156.17 subdivision 2, is amended to read: 156.18 Subd. 2. [INTERIM REPORT.] The commission and, beginning 156.19 January 1, 1997, the councilshallmust report semiannually to 156.20 the legislature with interim recommendations to change the 156.21 program. 156.22 Sec. 19. Minnesota Statutes 1996, section 121.710, 156.23 subdivision 3, is amended to read: 156.24 Subd. 3. [FINAL REPORT.] The commission and, beginning 156.25 January 1, 1997, the councilshallmust present a final report 156.26 to the legislature by January 1, 1998, summarizing grantee 156.27 evaluations, reporting on individual participants and 156.28 participating grantee organizations, and recommending any 156.29 changes to improve or expand the program. 156.30 Sec. 20. Minnesota Statutes 1997 Supplement, section 156.31 121.831, subdivision 3, is amended to read: 156.32 Subd. 3. [PROGRAM ELIGIBILITY.] A learning readiness 156.33 programshallmust include the following: 156.34 (1) a comprehensive plan to anticipate and meet the needs 156.35 of participating families by coordinating existing social 156.36 services programs and by fostering collaboration among agencies 157.1 or other community-based organizations and programs that provide 157.2 a full range of flexible, family-focused services to families 157.3 with young children; 157.4 (2) a development and learning component to help children 157.5 develop appropriate social, cognitive, and physical skills, and 157.6 emotional well-being; 157.7 (3) health referral services to address children's medical, 157.8 dental, mental health, and nutritional needs; 157.9 (4) a nutrition component to meet children's daily 157.10 nutritional needs; 157.11 (5) parents' involvement in meeting children's educational, 157.12 health, social service, and other needs; 157.13 (6) community outreach to ensure participation by families 157.14 who represent the racial, cultural, and economic diversity of 157.15 the community; 157.16 (7) community-based staff and program resources, including 157.17 interpreters, that reflect the racial and ethnic characteristics 157.18 of the children participating in the program; and 157.19 (8) a literacy component to ensure that the literacy needs 157.20 of parents are addressed through referral to and cooperation 157.21 with adult basic education programs and other adult literacy 157.22 programs. 157.23 Sec. 21. Minnesota Statutes 1996, section 121.831, 157.24 subdivision 6, is amended to read: 157.25 Subd. 6. [COORDINATION WITH OTHER PROVIDERS.] (a) The 157.26 districtshallmust coordinate the learning readiness program 157.27 with existing community-based social services providers and 157.28 foster collaboration among agencies and other community-based 157.29 organizations and programs that provide flexible, family-focused 157.30 services to families with children. The districtshallmust 157.31 actively encourage greater sharing of responsibility and 157.32 accountability among service providers and facilitate children's 157.33 transition between programs. 157.34 (b) To the extent possible, resourcesshallmust follow the 157.35 children so that children receive appropriate services in a 157.36 stable environment and are not moved from one program location 158.1 to another. Where geographically feasible, the districtshall158.2 must actively promote colocating of services for children and 158.3 their families. 158.4 Sec. 22. Minnesota Statutes 1996, section 121.831, 158.5 subdivision 7, is amended to read: 158.6 Subd. 7. [ADVISORY COUNCIL.] Each learning readiness 158.7 programshallmust have an advisory council composed of members 158.8 of existing early education-related boards, parents of 158.9 participating children, child care providers, culturally 158.10 specific service organizations, local resource and referral 158.11 agencies, and representatives of early childhood service 158.12 providers. The councilshallmust advise theschoolboard in 158.13 creating and administering the program andshallmust monitor 158.14 the progress of the program. The councilshallmust ensure that 158.15 children at greatest risk receive appropriate services. If 158.16 theschoolboard is unable to appoint to the advisory council 158.17 members of existing early education-related boards, itshall158.18 must appoint parents of children enrolled in the program who 158.19 represent the racial, cultural, and economic diversity of the 158.20 district and representatives of early childhood service 158.21 providers as representatives to an existing advisory council. 158.22 Sec. 23. Minnesota Statutes 1996, section 121.831, 158.23 subdivision 8, is amended to read: 158.24 Subd. 8. [PRIORITY CHILDREN.] The districtshallmust give 158.25 greatest priority to providing services to eligible children 158.26 identified, through a means such as the early childhood 158.27 screening process, as being developmentally disadvantaged or 158.28 experiencing risk factors that could impede their learning 158.29 readiness. 158.30 Sec. 24. Minnesota Statutes 1996, section 121.831, 158.31 subdivision 9, is amended to read: 158.32 Subd. 9. [CHILD RECORDS.] (a) A record of a child's 158.33 progress and developmentshallmust be maintained in the child's 158.34 cumulative record while enrolled in the learning readiness 158.35 program. The cumulative recordshallmust be used for the 158.36 purpose of planning activities to suit individual needs and 159.1 shall become part of the child's permanent record. The 159.2 cumulative record is private data under chapter 13. Information 159.3 in the record may be disseminated to an educator or service 159.4 provider only to the extent that that person has a need to know 159.5 the information. 159.6 (b) An educator or service provider may transmit 159.7 information in the child's cumulative record to an educator or 159.8 service provider in another program for young children when the 159.9 child applies to enroll in that other program. 159.10 Sec. 25. Minnesota Statutes 1996, section 121.831, 159.11 subdivision 10, is amended to read: 159.12 Subd. 10. [SUPERVISION.] A program provided by aschool159.13 boardshallmust be supervised by a licensed early childhood 159.14 teacher, a certified early childhood educator, or a licensed 159.15 parent educator. A program provided according to a contract 159.16 between aschooldistrict and a nonprofit organization or 159.17 another private organizationshallmust be supervised and 159.18 staffed according to the terms of the contract. 159.19 Sec. 26. Minnesota Statutes 1996, section 121.831, 159.20 subdivision 11, is amended to read: 159.21 Subd. 11. [DISTRICT STANDARDS.] Theschoolboard of the 159.22 districtshallmust develop standards for the learning readiness 159.23 program that reflect the eligibility criteria in subdivision 3. 159.24 The boardshallmust consider including in the standards the 159.25 program characteristics in subdivision 4. 159.26 Sec. 27. Minnesota Statutes 1996, section 121.831, 159.27 subdivision 12, is amended to read: 159.28 Subd. 12. [PROGRAM FEES.] A district may adopt a sliding 159.29 fee schedule based on a family's income butshallmust waive a 159.30 fee for a participant unable to pay. The fees charged must be 159.31 designed to enable eligible children of all socioeconomic levels 159.32 to participate in the program. 159.33 Sec. 28. Minnesota Statutes 1996, section 121.835, 159.34 subdivision 4, is amended to read: 159.35 Subd. 4. [DISTRIBUTION.] The commissionerof children,159.36families, and learningshall give priority to funding existing 160.1 programs. 160.2 To the extent possible, the commissioner shall award grants 160.3 to applicants with experience or demonstrated ability in 160.4 providing comprehensive, multidisciplinary, community-based 160.5 programs with objectives similar to those listed in subdivision 160.6 2, or in providing other human services or social services 160.7 programs using a multidisciplinary, community-based approach. 160.8 Sec. 29. Minnesota Statutes 1996, section 121.835, 160.9 subdivision 5, is amended to read: 160.10 Subd. 5. [APPLICATIONS.] Each grant application must 160.11 propose a five-year program designed to accomplish the purposes 160.12 of this section. The application must be submitted on forms 160.13 provided by the commissionerof children, families, and160.14learning. The grant application must include: 160.15 (1) a description of the specific neighborhoods that will 160.16 be served under the program and the name, address, and a 160.17 description of each community agency or agencies with which the 160.18 applicant intends to contract to provide services using grant 160.19 money; 160.20 (2) a letter of intent from each community agency 160.21 identified in clause (1) that indicates the agency's willingness 160.22 to participate in the program and approval of the proposed 160.23 program structure and components; 160.24 (3) a detailed description of the structure and components 160.25 of the proposed program and an explanation of how each component 160.26 will contribute to accomplishing the purposes of this section; 160.27 (4) a description of how public and private resources, 160.28 including schools, health care facilities, government agencies, 160.29 neighborhood organizations, and other resources, will be 160.30 coordinated and made accessible to families in target 160.31 neighborhoods, including letters of intent from public and 160.32 private agencies indicating their willingness to cooperate with 160.33 the program; 160.34 (5) a detailed, proposed budget that demonstrates the 160.35 ability of the program to accomplish the purposes of this 160.36 section using grant money and other available resources, 161.1 including funding sources other than a grant; and 161.2 (6) a comprehensive evaluation plan for measuring the 161.3 success of the program in meeting the objectives of the overall 161.4 grant program and the individual grant project, including an 161.5 assessment of the impact of the program in terms of at least 161.6 three of the following criteria: 161.7 (i) utilization rates of community services; 161.8 (ii) availability of support systems for families; 161.9 (iii) birth weights of newborn babies; 161.10 (iv) child accident rates; 161.11 (v) utilization rates of prenatal care; 161.12 (vi) reported rates of child abuse; 161.13 (vii) rates of health screening and evaluation; and 161.14 (viii) school readiness of way to grow participants 161.15 compared to nonparticipants. 161.16 Sec. 30. Minnesota Statutes 1996, section 121.835, 161.17 subdivision 7, is amended to read: 161.18 Subd. 7. [ADVISORY COMMITTEES.] The commissionerof161.19children, families, and learningshall establish a program 161.20 advisory committee consisting of persons knowledgeable in child 161.21 development, child health, and family services, who reflect the 161.22 geographic, cultural, racial, and ethnic diversity of the state; 161.23 and representatives of the commissioners of children, families, 161.24 and learning, human services, and health. This program advisory 161.25 committeeshallmust review grant applications, assist in 161.26 distribution of the grants, and monitor progress of the way to 161.27 grow/school readiness program. Each grantee must establish a 161.28 program advisory board of 12 or more members to advise the 161.29 grantee on program design, operation, and evaluation. The board 161.30 must include representatives of local units of government and 161.31 representatives of the project area who reflect the geographic, 161.32 cultural, racial, and ethnic diversity of that community. 161.33 Sec. 31. Minnesota Statutes 1996, section 121.835, 161.34 subdivision 8, is amended to read: 161.35 Subd. 8. [REPORT.] The advisory committeeshallmust 161.36 report to the education committee of the legislature by January 162.1 15, 1993, on the evaluation required in subdivision 5, clause 162.2 (6), and shall make recommendations for establishing successful 162.3 way to grow programs in unserved areas of the state. 162.4 Sec. 32. Minnesota Statutes 1996, section 121.8355, 162.5 subdivision 2, is amended to read: 162.6 Subd. 2. [DUTIES.] (a) Each collaborativeshallmust: 162.7 (1) establish, with assistance from families and service 162.8 providers, clear goals for addressing the health, developmental, 162.9 educational, and family-related needs of children and youth and 162.10 use outcome-based indicators to measure progress toward 162.11 achieving those goals; 162.12 (2) establish a comprehensive planning process that 162.13 involves all sectors of the community, identifies local needs, 162.14 and surveys existing local programs; 162.15 (3) integrate service funding sources so that children and 162.16 their families obtain services from providers best able to 162.17 anticipate and meet their needs; 162.18 (4) coordinate families' services to avoid duplicative and 162.19 overlapping assessment and intake procedures; 162.20 (5) focus primarily on family-centered services; 162.21 (6) encourage parents and volunteers to actively 162.22 participate by using flexible scheduling and actively recruiting 162.23 volunteers; 162.24 (7) provide services in locations that are readily 162.25 accessible to children and families; 162.26 (8) use new or reallocated funds to improve or enhance 162.27 services provided to children and their families; 162.28 (9) identify federal, state, and local institutional 162.29 barriers to coordinating services and suggest ways to remove 162.30 these barriers; and 162.31 (10) design and implement an integrated local service 162.32 delivery system for children and their families that coordinates 162.33 services across agencies and is client centered. The delivery 162.34 system shall provide a continuum of services for children birth 162.35 to age 18, or birth through age 21 for individuals with 162.36 disabilities. The collaborative shall describe the community 163.1 plan for serving pregnant women and children from birth to age 163.2 six. 163.3 (b) The outcome-based indicators developed in paragraph 163.4 (a), clause (1), may include the number of low birth weight 163.5 babies, the infant mortality rate, the number of children who 163.6 are adequately immunized and healthy, require out-of-home 163.7 placement or long-term special education services, and the 163.8 number of minor parents. 163.9 Sec. 33. Minnesota Statutes 1996, section 121.8355, 163.10 subdivision 3, is amended to read: 163.11 Subd. 3. [INTEGRATED LOCAL SERVICE DELIVERY SYSTEM.] A 163.12 collaborativeshallmust design an integrated local service 163.13 delivery system that coordinates funding streams and the 163.14 delivery of services between existing agencies. The integrated 163.15 local service delivery system may: 163.16 (1) improve outreach and early identification of children 163.17 and families in need of services and intervene across service 163.18 systems on behalf of families; 163.19 (2) offer an inclusive service system that supports all 163.20 families within a community; 163.21 (3) coordinate services that eliminate the need to match 163.22 funding streams, provider eligibilities, or clients with 163.23 multiple providers; 163.24 (4) improve access to services by coordinating 163.25 transportation services; 163.26 (5) provide initial outreach to all new mothers and 163.27 periodic family visits to children who are potentially at risk; 163.28 (6) coordinate assessment across systems to determine which 163.29 children and families need coordinated multiagency services and 163.30 supplemental services; 163.31 (7) include multiagency service plans and coordinate 163.32 unitary case management; and 163.33 (8) integrate funding of services. 163.34 Sec. 34. Minnesota Statutes 1996, section 121.8355, 163.35 subdivision 5, is amended to read: 163.36 Subd. 5. [LOCAL PLANS.] The collaborative planshallmust 164.1 describe how the collaborative will carry out the duties and 164.2 implement the integrated local services delivery system required 164.3 under this section. The planshallmust include a list of the 164.4 collaborative participants, a copy of the agreement required 164.5 under subdivision 1, the amount and source of resources each 164.6 participant will contribute to the integrated fund, and methods 164.7 for increasing local participation in the collaborative, 164.8 involving parents and other community members in implementing 164.9 and operating the collaborative, and providing effective 164.10 outreach services to all families with young children in the 164.11 community. The planshallmust also include specific goals that 164.12 the collaborative intends to achieve and methods for objectively 164.13 measuring progress toward meeting the goals. 164.14 Sec. 35. Minnesota Statutes 1996, section 121.8355, 164.15 subdivision 6, is amended to read: 164.16 Subd. 6. [PLAN APPROVAL BY THE CHILDREN'S CABINET.] (a) 164.17 The children's cabinetshallmust approve local plans for 164.18 collaboratives. In approving local plans, the children's 164.19 cabinetshallmust give highest priority to a plan that provides: 164.20 (1) early intervention and family outreach services; 164.21 (2) family visitation services; 164.22 (3) a continuum of services for children from birth to age 164.23 18; 164.24 (4) family preservation services; 164.25 (5) culturally sensitive approaches for delivering services 164.26 and utilizing culturally specific organizations; 164.27 (6) clearly defined outcomes and valid methods of 164.28 assessment; 164.29 (7) effective service coordination; 164.30 (8) participation by the maximum number of jurisdictions 164.31 and local, county, and state funding sources; 164.32 (9) integrated community service providers and local 164.33 resources; 164.34 (10) integrated transportation services; 164.35 (11) integrated housing services; and 164.36 (12) coordinated services that include a children's mental 165.1 health collaborative authorized by law. 165.2 (b) The children's cabinetshallmust ensure that the 165.3 collaboratives established under this section do not conflict 165.4 with any state or federal policy or program and do not 165.5 negatively impact the state budget. 165.6 Sec. 36. Minnesota Statutes 1996, section 121.88, 165.7 subdivision 2, is amended to read: 165.8 Subd. 2. [ADVISORY COUNCIL.] Each boardshallmust provide 165.9 for an advisory council to consist of members who represent: 165.10 various service organizations; churches; public and nonpublic 165.11 schools; local government including elected officials; public 165.12 and private nonprofit agencies serving youth and families; 165.13 parents; youth; park, recreation or forestry services of 165.14 municipal or local government units located in whole or in part 165.15 within the boundaries of the school district; and any other 165.16 groups participating in the community education program in the 165.17 school district. 165.18 Sec. 37. Minnesota Statutes 1996, section 121.88, 165.19 subdivision 3, is amended to read: 165.20 Subd. 3. [COOPERATION.] The councilshallmust function in 165.21 cooperation with the community education director in an advisory 165.22 capacity in the interest of promoting the goals and objectives 165.23 of sections 121.85 to 121.88. 165.24 Sec. 38. Minnesota Statutes 1996, section 121.88, 165.25 subdivision 4, is amended to read: 165.26 Subd. 4. [DUPLICATION POLICY.] Each councilshallmust 165.27 adopt a policy to reduce and eliminate program duplication 165.28 within the district. 165.29 Sec. 39. Minnesota Statutes 1996, section 121.88, 165.30 subdivision 6, is amended to read: 165.31 Subd. 6. [PROGRAMS FOR ADULTS WITH DISABILITIES.] Aschool165.32 board may offer, as part of a community education program, a 165.33 program for adults with disabilities. Boards are encouraged to 165.34 offer programs cooperatively with other districts and 165.35 organizations. Programs may not be limited to district 165.36 residents. Programs may include: 166.1 (1) services enabling the adults to participate in 166.2 community activities or community education classes; 166.3 (2) classes specifically for adults with disabilities; 166.4 (3) outreach activities to identify adults needing service; 166.5 (4) activities to increase public awareness of the roles of 166.6 people with disabilities; 166.7 (5) activities to enhance the role of people with 166.8 disabilities in the community; and 166.9 (6) other direct and indirect services and activities 166.10 benefiting adults with disabilities. 166.11 Sec. 40. Minnesota Statutes 1996, section 121.88, 166.12 subdivision 7, is amended to read: 166.13 Subd. 7. [PROGRAM APPROVAL.] To be eligible for revenue 166.14 for the program for adults with disabilities, a program and 166.15 budget must receive approval from the community education 166.16 section in the departmentof children, families, and learning. 166.17 Approval may be for five years. During that time, aschool166.18 board must report any significant changes to the department for 166.19 approval. For programs offered cooperatively, the request for 166.20 approval must include an agreement on the method by which local 166.21 money is to be derived and distributed. A request for approval 166.22 must include all of the following: 166.23 (1) characteristics of the people to be served; 166.24 (2) description of the program services and activities; 166.25 (3) program budget and amount of aid requested; 166.26 (4) participation by adults with disabilities in developing 166.27 the program; 166.28 (5) assessment of the needs of adults with disabilities; 166.29 and 166.30 (6) cooperative efforts with community organizations. 166.31 Sec. 41. Minnesota Statutes 1996, section 121.88, 166.32 subdivision 9, is amended to read: 166.33 Subd. 9. [YOUTH SERVICE PROGRAMS.] A school board may 166.34 offer, as part of a community education program with a youth 166.35 development program, a youth service program that provides young 166.36 people with meaningful opportunities to become involved in their 167.1 community, develop individual capabilities, make career 167.2 connections, seek support networks and services, become active 167.3 citizens, and address community needs through youth service. 167.4 Theschoolboard may award up to one credit, or the equivalent, 167.5 toward graduation for a pupil who completes the youth service 167.6 requirements of the district. The community education advisory 167.7 council, after considering the results of the commissioner's 167.8 study under section 121.885, subdivision 1,shallmust design 167.9 the program in cooperation with the district planning, 167.10 evaluating and reporting committee and local organizations that 167.11 train volunteers or need volunteers' services. Programs must 167.12 include: 167.13 (1) preliminary training for pupil volunteers conducted, 167.14 when possible, by organizations experienced in such training; 167.15 (2) supervision of the pupil volunteers to ensure 167.16 appropriate placement and adequate learning opportunity; 167.17 (3) sufficient opportunity, in a positive setting for human 167.18 development, for pupil volunteers to develop general skills in 167.19 preparation for employment, to enhance self-esteem and 167.20 self-worth, and to give genuine service to their community; 167.21 (4) integration of academic learning with the service 167.22 experience; and 167.23 (5) integration of youth community service with elementary 167.24 and secondary curriculum. 167.25 Youth service projects include, but are not limited to, the 167.26 following: 167.27 (1) human services for the elderly, including home care and 167.28 related services; 167.29 (2) tutoring and mentoring; 167.30 (3) training for and providing emergency services; 167.31 (4) services at extended day programs; 167.32 (5) environmental services; and 167.33 (6) service-learning programs in which schools, including 167.34 post-secondary schools, and employers work together with young 167.35 people to provide them with meaningful opportunities for 167.36 community service and with the academic and technical skills 168.1 that employers require. 168.2 The commissioner shall maintain a list of acceptable 168.3 projects with a description of each project. A project that is 168.4 not on the list must be approved by the commissioner. 168.5 A youth service project must have a community sponsor that 168.6 may be a governmental unit or nonprofit organization. To assure 168.7 that pupils provide additional services, each sponsor must 168.8 assure that pupil services do not displace employees or reduce 168.9 the workload of any employee. 168.10 The commissionermustshall assist districts in planning 168.11 youth service programs, implementing programs, and developing 168.12 recommendations for obtaining community sponsors. 168.13 Sec. 42. Minnesota Statutes 1997 Supplement, section 168.14 121.88, subdivision 10, is amended to read: 168.15 Subd. 10. [EXTENDED DAY PROGRAMS.] (a) A school board may 168.16 offer, as part of a community education program, an extended day 168.17 program for children from kindergarten through grade 6 for the 168.18 purpose of expanding students' learning opportunities. A 168.19 program must include the following: 168.20 (1) adult supervised programs while school is not in 168.21 session; 168.22 (2) parental involvement in program design and direction; 168.23 (3) partnerships with theK-12kindergarten through grade 168.24 12 system, and other public, private, or nonprofit entities; and 168.25 (4) opportunities for trained secondary school pupils to 168.26 work with younger children in a supervised setting as part of a 168.27 community service program. 168.28 (b) The district may charge a sliding fee based upon family 168.29 income for extended day programs. The district may receive 168.30 money from other public or private sources for the extended day 168.31 program. Theschoolboard of the districtshallmust develop 168.32 standards for school age child care programs. Districtswith168.33programs in operation before July 1, 1990, must adopt standards168.34before October 1, 1991. All other districtsmust adopt 168.35 standards within one year after the district first offers 168.36 services under a program authorized by this subdivision. The 169.1 state board of education may not adopt rules for extended day 169.2 programs. 169.3 (c) The district shall maintain a separate account within 169.4 the community services fund for all funds related to the 169.5 extended day program. 169.6 Sec. 43. Minnesota Statutes 1996, section 121.882, 169.7 subdivision 1, is amended to read: 169.8 Subdivision 1. [ESTABLISHMENT.] A district that provides a 169.9 community education program under sections 121.85 to 121.88 may 169.10 establish an early childhood family education program. Two or 169.11 more districts, each of which provides a community education 169.12 program, may cooperate to jointly provide an early childhood 169.13 family education program. 169.14 Sec. 44. Minnesota Statutes 1997 Supplement, section 169.15 121.882, subdivision 2, is amended to read: 169.16 Subd. 2. [PROGRAM CHARACTERISTICS.] Early childhood family 169.17 education programs are programs for children in the period of 169.18 life from birth to kindergarten, for the parents of such 169.19 children, and for expectant parents. The programs may include 169.20 the following: 169.21 (1) programs to educate parents about the physical, mental, 169.22 and emotional development of children; 169.23 (2) programs to enhance the skills of parents in providing 169.24 for their children's learning and development; 169.25 (3) learning experiences for children and parents that 169.26 promote children's development; 169.27 (4) activities designed to detect children's physical, 169.28 mental, emotional, or behavioral problems that may cause 169.29 learning problems; 169.30 (5) activities and materials designed to encourage 169.31 self-esteem, skills, and behavior that prevent sexual and other 169.32 interpersonal violence; 169.33 (6) educational materials which may be borrowed for home 169.34 use; 169.35 (7) information on related community resources; 169.36 (8) programs to prevent child abuse and neglect; 170.1 (9) other programs or activities to improve the health, 170.2 development, and learning readiness of children; or 170.3 (10) activities designed to maximize development during 170.4 infancy. 170.5 The programsshallmust not include activities for children 170.6 that do not require substantial involvement of the children's 170.7 parents. The programsshallmust be reviewed periodically to 170.8 assure the instruction and materials are not racially, 170.9 culturally, or sexually biased. The programsshallmust 170.10 encourage parents to be aware of practices that may affect 170.11 equitable development of children. 170.12 Sec. 45. Minnesota Statutes 1996, section 121.882, 170.13 subdivision 2b, is amended to read: 170.14 Subd. 2b. [HOME VISITING PROGRAM.] (a) The commissionerof170.15children, families, and learningshall include as part of the 170.16 early childhood family education programs a parent education 170.17 component to prevent child abuse and neglect. This parent 170.18 education component must include: 170.19 (1) expanding statewide the home visiting component of the 170.20 early childhood family education programs; 170.21 (2) training parent educators, child educators, community 170.22 outreach workers, and home visitors in the dynamics of child 170.23 abuse and neglect and positive parenting and discipline 170.24 practices; and 170.25 (3) developing and disseminating education and public 170.26 information materials that promote positive parenting skills and 170.27 prevent child abuse and neglect. 170.28 (b) The parent education component must: 170.29 (1) offer to isolated or at-risk families home visiting 170.30 parent education services that at least address parenting 170.31 skills, a child's development and stages of growth, 170.32 communication skills, managing stress, problem-solving skills, 170.33 positive child discipline practices, methods of improving 170.34 parent-child interactions and enhancing self-esteem, using 170.35 community support services and other resources, and encouraging 170.36 parents to have fun with and enjoy their children; 171.1 (2) develop a risk assessment tool to determine the 171.2 family's level of risk; 171.3 (3) establish clear objectives and protocols for home 171.4 visits; 171.5 (4) determine the frequency and duration of home visits 171.6 based on a risk-need assessment of the client, with home visits 171.7 beginning in the second trimester of pregnancy and continuing, 171.8 based on client need, until a child is six years old; 171.9 (5) encourage families to make a transition from home 171.10 visits to site-based parenting programs to build a family 171.11 support network and reduce the effects of isolation; 171.12 (6) develop and distribute education materials on 171.13 preventing child abuse and neglect that may be used in home 171.14 visiting programs and parent education classes and distributed 171.15 to the public; 171.16 (7) initially provide at least 40 hours of training and 171.17 thereafter ongoing training for parent educators, child 171.18 educators, community outreach workers, and home visitors that 171.19 covers the dynamics of child abuse and neglect, domestic 171.20 violence and victimization within family systems, signs of abuse 171.21 or other indications that a child may be at risk of being abused 171.22 or neglected, what child abuse and neglect are, how to properly 171.23 report cases of child abuse and neglect, respect for cultural 171.24 preferences in child rearing, what community resources, social 171.25 service agencies, and family support activities and programs are 171.26 available, child development and growth, parenting skills, 171.27 positive child discipline practices, identifying stress factors 171.28 and techniques for reducing stress, home visiting techniques, 171.29 and risk assessment measures; 171.30 (8) provide program services that are community-based, 171.31 accessible, and culturally relevant; and 171.32 (9) foster collaboration among existing agencies and 171.33 community-based organizations that serve young children and 171.34 their families. 171.35 (c) Home visitors should reflect the demographic 171.36 composition of the community the home visitor is serving to the 172.1 extent possible. 172.2 Sec. 46. Minnesota Statutes 1996, section 121.882, 172.3 subdivision 3, is amended to read: 172.4 Subd. 3. [SEPARATE ACCOUNTS.] The districtshallmust 172.5 maintain a separate account within the community education fund 172.6 for money for early childhood family education programs. 172.7 Sec. 47. Minnesota Statutes 1996, section 121.882, 172.8 subdivision 7, is amended to read: 172.9 Subd. 7. [DISTRICT ADVISORY COUNCILS.] Theschool172.10 boardshallmust appoint an advisory council from the area in 172.11 which the program is provided. A majority of the councilshall172.12 must be parents participating in the program. The councilshall172.13 must assist the board in developing, planning, and monitoring 172.14 the early childhood family education program. The councilshall172.15 must report to theschoolboard and the community education 172.16 advisory council. 172.17 Sec. 48. Minnesota Statutes 1996, section 121.882, 172.18 subdivision 7a, is amended to read: 172.19 Subd. 7a. [ALTERNATIVE COUNCIL.] Aschoolboard may direct 172.20 the community education council, required according to section 172.21 121.88, subdivision 2, to perform the functions of the advisory 172.22 council for early childhood family education. 172.23 Sec. 49. Minnesota Statutes 1996, section 121.882, 172.24 subdivision 8, is amended to read: 172.25 Subd. 8. [TEACHERS.] A school boardshallmust employ 172.26 necessary qualified teachers for its early childhood family 172.27 education programs. 172.28 Sec. 50. Minnesota Statutes 1996, section 121.882, 172.29 subdivision 9, is amended to read: 172.30 Subd. 9. [ASSISTANCE.] The departmentof children,172.31families, and learning shallmust provide assistance to 172.32 districts with programs described in this section. The 172.33 department must establish guidelines that list barriers to 172.34 learning and development affecting children served by early 172.35 childhood family education programs. 172.36 Sec. 51. Minnesota Statutes 1996, section 121.885, 173.1 subdivision 1, is amended to read: 173.2 Subdivision 1. [SERVICE-LEARNING AND WORK-BASED LEARNING 173.3 PROGRAMS STUDY.] The governor's workforce development council 173.4shallmust assist the commissionerof children, families, and173.5learningin studying how to combine community service activities 173.6 and service-learning with work-based learning programs. 173.7 Sec. 52. Minnesota Statutes 1996, section 121.885, 173.8 subdivision 4, is amended to read: 173.9 Subd. 4. [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 173.10 The Minnesota commission on national and community service in 173.11 cooperation with the governor's workforce development council, 173.12 the commissioner and the higher education services office, shall 173.13 provide for those participants who successfully complete youth 173.14 community service under sections 121.704 to 121.709, the 173.15 following: 173.16 (1) for those who have a high school diploma or its 173.17 equivalent, an opportunity to participate in a youth 173.18 apprenticeship program at a community or technical college; and 173.19 (2) for those who are post-secondary students, an 173.20 opportunity to participate in an educational program that 173.21 supplements post-secondary courses leading to a degree or a 173.22 statewide credential of academic and occupational proficiency. 173.23 (b) Participants who successfully complete a youth 173.24 community service program under sections 121.704 to 121.710 are 173.25 eligible to receive an education voucher as provided under 173.26 section 121.707, subdivision 4. The voucher recipient may apply 173.27 the voucher toward the cost of the recipient's tuition and other 173.28 education-related expenses at a post-secondary school under 173.29 paragraph (a). 173.30 (c) The governor's workforce development council, in 173.31 cooperation with the board of trustees of the Minnesota state 173.32 colleges and universities,shallmust establish a mechanism to 173.33 transfer credit earned in a youth apprenticeship program between 173.34 the technical colleges and other post-secondary institutions 173.35 offering applied associate degrees. 173.36 Sec. 53. Minnesota Statutes 1997 Supplement, section 174.1 123.35, subdivision 8, is amended to read: 174.2 Subd. 8. [EVENING SCHOOLS; ADULT AND CONTINUING 174.3 EDUCATION.] The board may establish and maintain public evening 174.4 schools and adult and continuing education programsand such. 174.5 The evening schools and adult and continuing education 174.6 programswhen somaintainedshallby the board must be available 174.7 to all persons over 16 years of age who, from any cause, are 174.8 unable to attend the full-time elementary or secondary schools 174.9 of such district. 174.10 Sec. 54. Minnesota Statutes 1996, section 123.70, 174.11 subdivision 2, is amended to read: 174.12 Subd. 2. [SCHEDULE OF IMMUNIZATIONS.] No person who has 174.13 commenced a treatment schedule of immunization pursuant to 174.14 subdivision 1, clause (2), may remain enrolled in any child care 174.15 facility, elementary, or secondary school in this state after 18 174.16 months of enrollment unless there is submitted to the 174.17 administrator, or other person having general control and 174.18 supervision of the school or child care facility, a statement 174.19 from a physician or a public clinic which provides immunizations 174.20 that the person has completed the primary schedule of 174.21 immunizations for diphtheria, tetanus, pertussis, and polioand174.22in which the month and year of each additional immunization174.23received is included. The statement must include the month and 174.24 year of each additional immunization received. For a child less 174.25 than seven years of age, a primary schedule of immunizations 174.26 shall consist of four doses of vaccine for diphtheria, tetanus, 174.27 and pertussis and three doses of vaccine for poliomyelitis. For 174.28 a child seven years of age or older, a primary schedule of 174.29 immunizations shall consist of three doses of vaccine for 174.30 diphtheria, tetanus, and polio. 174.31 Sec. 55. Minnesota Statutes 1996, section 123.70, 174.32 subdivision 4, is amended to read: 174.33 Subd. 4. [SUBSTITUTE IMMUNIZATION STATEMENT.] A person who 174.34 is enrolling or enrolled in an elementary or secondary school or 174.35 child care facility may substitute a statement from the 174.36 emancipated person or a parent or guardian if the person is a 175.1 minor child in lieu of the statement from a physician or public 175.2 clinic which provides immunizations. If the statement is from a 175.3 parent or guardian or emancipated person, the statementshall175.4 must indicate the month and year of each immunization given. In 175.5 order for the statement to be acceptable for a person who is 175.6 enrolling in an elementary school and who is six years of age or 175.7 younger, it must indicate that the following was given: no less 175.8 than one dose of vaccine each for measles, mumps, and rubella 175.9 given separately or in combination, and no less than four doses 175.10 of vaccine for poliomyelitis, unless the third dose was given 175.11 after the fourth birthday, then three doses are minimum, and no 175.12 less than five doses of vaccine for diphtheria, tetanus, and 175.13 pertussis, unless the fourth dose was given after the fourth 175.14 birthday, then four are minimum. In order for the statement to 175.15 be acceptable for a person who is enrolling in an elementary or 175.16 secondary school and is age seven through age 19, the statement 175.17 must indicate that the person has received no less than one dose 175.18 of vaccine each for measles, mumps, and rubella given separately 175.19 or in combination and consistent with subdivision 10, and no 175.20 less than three doses of vaccine for poliomyelitis, diphtheria, 175.21 and tetanus. 175.22 In order for the statement to be acceptable for a person 175.23 who is enrolling in a secondary school, and who was born after 175.24 1956 and is 20 years of age or older, the statement must 175.25 indicate that the person has received no less than one dose of 175.26 vaccine each for measles, mumps, and rubella given separately or 175.27 in combination, and no less than one dose of vaccine for 175.28 diphtheria and tetanus within the preceding ten years. In order 175.29 for the statement to be acceptable for a person who is enrolling 175.30 in a child care facility and who is at least 15 months old but 175.31 who has not reached five years of age, it must indicate that the 175.32 following were given: no less than one dose of vaccine each for 175.33 measles, mumps, and rubella given separately or in combination; 175.34 no less than one dose of vaccine for haemophilus influenza type 175.35 b; no less than four doses of vaccine for diphtheria, tetanus, 175.36 and pertussis; and no less than three doses of vaccine for 176.1 poliomyelitis. In order for the statement to be acceptable for 176.2 a person who is enrolling in a child care facility and who is 176.3 five or six years of age, it must indicate that the following 176.4 was given: no less than one dose of vaccine each for measles, 176.5 mumps, and rubella given separately or in combination, no less 176.6 than four doses of vaccine for diphtheria, tetanus, and 176.7 pertussis, and no less than three doses of vaccine for 176.8 poliomyelitis. In order for the statement to be acceptable for 176.9 a person who is enrolling in a child care facility and who is 176.10 seven years of age or older, the statement must indicate that 176.11 the person has received no less than one dose of vaccine each 176.12 for measles, mumps, and rubella given separately or in 176.13 combination and consistent with subdivision 10, and no less than 176.14 three doses of vaccine for poliomyelitis, diphtheria, and 176.15 tetanus. The commissioner of health, on finding that any of the 176.16 above requirements are not necessary to protect the public's 176.17 health, may suspend for one year that requirement. 176.18 Sec. 56. Minnesota Statutes 1996, section 123.70, 176.19 subdivision 8, is amended to read: 176.20 Subd. 8. [REPORT.] The administrator or other person 176.21 having general control and supervision of the elementary or 176.22 secondary school shall file a report with the commissionerof176.23children, families, and learningon all persons enrolled in the 176.24 school, except that. The superintendent of eachschooldistrict 176.25 shall file a report with the commissionerof children, families,176.26and learningfor all persons within the district receiving 176.27 instruction in a home school in compliance with sections 120.101 176.28 and 120.102. The parent of persons receiving instruction in a 176.29 home school shall submit the statements as required by 176.30 subdivisions 1, 2, 3, and 4 to the superintendent of theschool176.31 district in which the person resides by October 1 of each school 176.32 year. The school reportshallmust be prepared on forms 176.33 developed jointly by the commissioner of health and the 176.34 commissioner of children, families, and learning and be 176.35 distributed to the localschooldistricts by the commissioner of 176.36 healthand shall. The school report must state the number of 177.1 persons attending the school, the number of persons who have not 177.2 been immunized according to subdivision 1 or 2, and the number 177.3 of persons who received an exemption under subdivision 3, clause 177.4 (c) or (d). The school reportshallmust be filed with the 177.5 commissioner of children, families, and learning within 60 days 177.6 of the commencement of each new school term. Upon request, a 177.7 districtshallmust be given a 60-day extension for filing the 177.8 school report. The commissioner of children, families, and 177.9 learning shall forward the report, or a copy thereof, to the 177.10 commissioner of health who shall provide summary reports to 177.11 boards of health as defined in section 145A.02, subdivision 2. 177.12 The administrator or other person having general control and 177.13 supervision of the child care facility shall file a report with 177.14 the commissioner of human services on all persons enrolled in 177.15 the child care facility. The child care facility report must be 177.16 prepared on forms developed jointly by the commissioner of 177.17 health and the commissioner of human services and be distributed 177.18 to child care facilities by the commissioner of healthand. The 177.19 child care facility report must state the number of persons 177.20 enrolled in the facility, the number of persons with no 177.21 immunizations, the number of persons who received an exemption 177.22 under subdivision 3, clause (c) or (d), and the number of 177.23 persons with partial or full immunization histories. The child 177.24 care facility reportshallmust be filed with the commissioner 177.25 of human services by November 1 of each year. The commissioner 177.26 of human services shall forward the report, or a copy thereof, 177.27 to the commissioner of health who shall provide summary reports 177.28 to boards of health as defined in section 145A.02, subdivision 177.29 2. The report required by this subdivision is not required of a 177.30 family child care or group family child care facility, for 177.31 prekindergarten children enrolled in any elementary or secondary 177.32 school provided services according to section 120.17, 177.33 subdivision 2, nor for child care facilities in which at least 177.34 75 percent of children in the facility participate on a one-time 177.35 only or occasional basis to a maximum of 45 hours per child, per 177.36 month. 178.1 Sec. 57. Minnesota Statutes 1996, section 123.702, 178.2 subdivision 1, is amended to read: 178.3 Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 178.4 Every school boardshallmust provide for a mandatory program of 178.5 early childhood developmental screening for children once before 178.6 school entrance, targeting children who are between 3-1/2 and 178.7 four years old. This screening programshallmust be 178.8 established either by one board, by two or more boards acting in 178.9 cooperation, by service cooperatives, by early childhood family 178.10 education programs, or by other existing programs. This 178.11 screening examination is a mandatory requirement for a student 178.12 to continue attending kindergarten or first grade in a public 178.13 school. A child need not submit to developmental screening 178.14 provided by aschoolboard if the child's health records 178.15 indicate to theschoolboard that the child has received 178.16 comparable developmental screening from a public or private 178.17 health care organization or individual health care provider. 178.18The schoolDistricts are encouraged to reduce the costs of 178.19 preschool developmental screening programs by utilizing 178.20 volunteers in implementing the program. 178.21 Sec. 58. Minnesota Statutes 1996, section 123.702, 178.22 subdivision 1b, is amended to read: 178.23 Subd. 1b. [SCREENING PROGRAM.] (a) A screening program 178.24shallmust include at least the following components: 178.25 developmental assessments, hearing and vision screening or 178.26 referral, immunization review and referral, the child's height 178.27 and weight, identification of risk factors that may influence 178.28 learning, an interview with the parent about the child, and 178.29 referral for assessment, diagnosis, and treatment when potential 178.30 needs are identified. Theschooldistrict and the person 178.31 performing or supervising the screeningshallmust provide a 178.32 parent or guardian with clear written notice that the parent or 178.33 guardian may decline to answer questions or provide information 178.34 about family circumstances that might affect development and 178.35 identification of risk factors that may influence learning. The 178.36 noticeshallmust clearly state that declining to answer 179.1 questions or provide information does not prevent the child from 179.2 being enrolled in kindergarten or first grade if all other 179.3 screening components are met. If a parent or guardian is not 179.4 able to read and comprehend the written notice, theschool179.5 district and the person performing or supervising the screening 179.6 must convey the information in another manner. The noticeshall179.7 must also inform the parent or guardian that a child need not 179.8 submit to theschooldistrict screening program if the child's 179.9 health records indicate to the school that the child has 179.10 received comparable developmental screening performed within the 179.11 preceding 365 days by a public or private health care 179.12 organization or individual health care provider. The notice 179.13shallmust be given to a parent or guardian at the time the 179.14 district initially provides information to the parent or 179.15 guardian about screening andshallmust be given again at the 179.16 screening location. 179.17 (b) All screening components shall be consistent with the 179.18 standards of the state commissioner of health for early 179.19 developmental screening programs.NoA developmental screening 179.20 programshallmust not provide laboratory tests or a physical 179.21 examination to any child. Theschooldistrictshallmust 179.22 request from the public or private health care organization or 179.23 the individual health care provider the results of any 179.24 laboratory test or physical examination within the 12 months 179.25 preceding a child's scheduled screening. 179.26 (c) If a child is without health coverage, the school 179.27 districtshallmust refer the child to an appropriate health 179.28 care provider. 179.29 (d) Aschoolboard may offer additional components such as 179.30 nutritional, physical and dental assessments, review of family 179.31 circumstances that might affect development, blood pressure, 179.32 laboratory tests, and health history. 179.33 (e) If a statement signed by the child's parent or guardian 179.34 is submitted to the administrator or other person having general 179.35 control and supervision of the school that the child has not 179.36 been screened because of conscientiously held beliefs of the 180.1 parent or guardian, the screening is not required. 180.2 Sec. 59. Minnesota Statutes 1996, section 123.702, 180.3 subdivision 2, is amended to read: 180.4 Subd. 2. [FOLLOW-UP SCREENING.] If any child's screening 180.5 indicates a condition which requires diagnosis or treatment, the 180.6 child's parents shall be notified of the condition and 180.7 theschoolboard shall ensure that an appropriate follow-up and 180.8 referral process is available. 180.9 Sec. 60. Minnesota Statutes 1996, section 123.702, 180.10 subdivision 3, is amended to read: 180.11 Subd. 3. [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 180.12 Theschoolboardshallmust inform each resident family with a 180.13 child eligible to participate in the developmental screening 180.14 program about the availability of the program and the state's 180.15 requirement that a child receive developmental screening not 180.16 later than 30 days after the first day of attending kindergarten 180.17 in a public school. 180.18 Sec. 61. Minnesota Statutes 1996, section 123.702, 180.19 subdivision 4, is amended to read: 180.20 Subd. 4. [DEVELOPMENTAL SCREENING SERVICES.] Aschool180.21 board may contract with or purchase service from an approved 180.22 early developmental screening program in the area. 180.23 Developmental screening must be conducted by either an 180.24 individual who is licensed as, or has training that is similar 180.25 to a special education teacher, school psychologist, 180.26 kindergarten teacher, prekindergarten teacher, school nurse, 180.27 public health nurse, registered nurse, or physician. The 180.28 individual may be a volunteer. 180.29 Sec. 62. Minnesota Statutes 1996, section 123.702, 180.30 subdivision 4a, is amended to read: 180.31 Subd. 4a. [SCREENING RECORD.] Theschooldistrict 180.32shallmust provide the parent or guardian of the child screened 180.33 with a record indicating the month and year the child received 180.34 developmental screening and the results of the screening. The 180.35 districtshallmust keep a duplicate copy of the record of each 180.36 child screened. 181.1 Sec. 63. Minnesota Statutes 1996, section 123.702, 181.2 subdivision 5, is amended to read: 181.3 Subd. 5. [VOLUNTEER SCREENING PROGRAMS.] Everyschool181.4 boardshallmust integrate and utilize volunteer screening 181.5 programs in implementing sections 123.702 to 123.7045 wherever 181.6 possible. 181.7 Sec. 64. Minnesota Statutes 1996, section 123.702, 181.8 subdivision 6, is amended to read: 181.9 Subd. 6. [HEALTH CARE PROVIDER SOCIETIES.] Aschoolboard 181.10 may consult with local societies of health care providers. 181.11 Sec. 65. Minnesota Statutes 1996, section 123.702, 181.12 subdivision 7, is amended to read: 181.13 Subd. 7. [PRIORITY TO VOLUNTEERS.] In selecting personnel 181.14 to implement the screening program, theschooldistrictshall181.15 must give priority first to qualified volunteers. 181.16 Sec. 66. Minnesota Statutes 1996, section 123.704, is 181.17 amended to read: 181.18 123.704 [DATA USE.] 181.19 Data on individuals collected in screening programs 181.20 established pursuant to section 123.702 is private, as defined 181.21 by section 13.02, subdivision 12. Individual and summary data 181.22shallmust be reported to theschooldistrict by the health 181.23 provider who performs the screening services, for the purposes 181.24 of developing appropriate educational programs to meet the 181.25 individual needs of children and designing appropriate health 181.26 education programs for the district; provided,. No data on an 181.27 individual shall be disclosed to the district without the 181.28 consent of that individual's parent or guardian. 181.29 Sec. 67. Minnesota Statutes 1996, section 123.7045, is 181.30 amended to read: 181.31 123.7045 [DEVELOPMENTAL SCREENING AID.] 181.32 Each school year, the stateshallmust pay aschool181.33 district $25 for each child screened according to the 181.34 requirements of section 123.702. If this amount of aid is 181.35 insufficient, the district may permanently transfer from the 181.36 general fund an amount that, when added to the aid, is 182.1 sufficient. 182.2 Sec. 68. Minnesota Statutes 1996, section 124.255, is 182.3 amended to read: 182.4 124.255 [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] 182.5 Subdivision 1. [ESTABLISHMENT.] The school enrichment 182.6 partnership program is established. The purpose of the program 182.7 is to encourageschooldistricts to expand the involvement of 182.8 the private sector in the delivery of academic programs. The 182.9 program will provide matching state funds for those provided by 182.10 the private sector. 182.11 Subd. 2. [REVENUE ELIGIBILITY.] Aschooldistrict or group 182.12 ofschooldistricts is eligible to receive state aid under this 182.13 program. Districts may enter into joint agreements to provide 182.14 programs or make expenditures under this section. The 182.15 limitations under this subdivisionshallapply to these programs 182.16 or expenditures as if they were operated by a single district. 182.17 A district may receive $1 of state aid for each $2 raised from 182.18 the private sector. The private match must be in the form of 182.19 cash. Specific types of noncash support may be considered for 182.20 the private match. State aid is limited to the lesser of 182.21 $75,000 or $10 per pupil unit per district. 182.22 Subd. 3. [REVENUE MANAGEMENT.] The use of the state and 182.23 private funds provided under this section is under the general 182.24 control of theschoolboard. The board may establish, without 182.25 using state funds or public employees, a separate foundation to 182.26 directly manage the funds. The private funds must be used to 182.27 acquire instructional or noninstructional academic materials of 182.28 a capital nature including, but not limited to, textbooks, 182.29 globes, maps, and other academic material. The fundsmayshall 182.30 not be used for salaries or other employee benefits. 182.31 Subd. 4. [PROCEDURES; REPORT.] The Minnesota academic 182.32 excellence foundation, under the direction of the commissioner 182.33of children, families, and learning, shallmust establish 182.34 application forms, guidelines, procedures, and timelines for the 182.35 distribution of state aid. The commissioner may require 182.36 reporting necessary to evaluate the program. Measures of 183.1 success will include numbers of partnerships and funds raised; 183.2 numbers of school foundations formed; and demonstrated linkages 183.3 of partnerships to improved instructional delivery resulting in 183.4 increased student learning. 183.5 Subd. 5. [RESULTS-ORIENTED CHARTER SCHOOLS.] 183.6 Notwithstanding section 124.248, subdivision 4, paragraph (b), a 183.7 results-oriented charter school is eligible to participate in 183.8 the program under this section as if it were aschooldistrict. 183.9 Sec. 69. Minnesota Statutes 1996, section 124.26, 183.10 subdivision 1c, is amended to read: 183.11 Subd. 1c. [PROGRAM APPROVAL.] (a) To receive aid under 183.12 this section, a district, a consortium of districts, or a 183.13 private nonprofit organization must submit an application by 183.14 June 1 describing the program, on a form provided by the 183.15 department. The program must be approved by the commissioner 183.16 according to the following criteria: 183.17 (1) how the needs of different levels of learning will be 183.18 met; 183.19 (2) for continuing programs, an evaluation of results; 183.20 (3) anticipated number and education level of participants; 183.21 (4) coordination with other resources and services; 183.22 (5) participation in a consortium, if any, and money 183.23 available from other participants; 183.24 (6) management and program design; 183.25 (7) volunteer training and use of volunteers; 183.26 (8) staff development services; 183.27 (9) program sites and schedules; and 183.28 (10) program expenditures that qualify for aid. 183.29 (b) The commissioner may grant adult basic education funds 183.30 to a private, nonprofit organization to provide services that 183.31 are not offered by a district or that are supplemental to a 183.32 district's program. The program provided under this provision 183.33 must be approved and funded according to the same criteria used 183.34 for district programs. 183.35 (c) Adult basic education programs may be approved under 183.36 this subdivision for up to five years. Five-year program 184.1 approvalshallmust be granted to an applicant who has 184.2 demonstrated the capacity to: 184.3 (1) offer comprehensive learning opportunities and support 184.4 service choices appropriate for and accessible to adults at all 184.5 basic skill need levels; 184.6 (2) provide a participatory and experiential learning 184.7 approach based on the strengths, interests, and needs of each 184.8 adult, that enables adults with basic skill needs to: 184.9 (i) identify, plan for, and evaluate their own progress 184.10 toward achieving their defined educational and occupational 184.11 goals; 184.12 (ii) master the basic academic reading, writing, and 184.13 computational skills, as well as the problem-solving, decision 184.14 making, interpersonal effectiveness, and other life and learning 184.15 skills they need to function effectively in a changing society; 184.16 (iii) locate and be able to use the health, governmental, 184.17 and social services and resources they need to improve their own 184.18 and their families' lives; and 184.19 (iv) continue their education, if they desire, to at least 184.20 the level of secondary school completion, with the ability to 184.21 secure and benefit from continuing education that will enable 184.22 them to become more employable, productive, and responsible 184.23 citizens; 184.24 (3) plan, coordinate, and develop cooperative agreements 184.25 with community resources to address the needs that the adults 184.26 have for support services, such as transportation, flexible 184.27 course scheduling, convenient class locations, and child care; 184.28 (4) collaborate with business, industry, labor unions, and 184.29 employment-training agencies, as well as with family and 184.30 occupational education providers, to arrange for resources and 184.31 services through which adults can attain economic 184.32 self-sufficiency; 184.33 (5) provide sensitive and well trained adult education 184.34 personnel who participate in local, regional, and statewide 184.35 adult basic education staff development events to master 184.36 effective adult learning and teaching techniques; 185.1 (6) participate in regional adult basic education peer 185.2 program reviews and evaluations; and 185.3 (7) submit accurate and timely performance and fiscal 185.4 reports. 185.5 Sec. 70. Minnesota Statutes 1997 Supplement, section 185.6 124.26, subdivision 2, is amended to read: 185.7 Subd. 2. [ACCOUNTS; REVENUE; AID.] Each district, group of 185.8 districts, or private nonprofit organization providing adult 185.9 basic education programsshallmust establish and maintain 185.10 accounts separate from all other district accounts for the 185.11 receipt and disbursement of all funds related to these 185.12 programs. All revenue received pursuant to this sectionshall185.13 must be utilized solely for the purposes of adult basic 185.14 education programs.In no case shallFederal and state aid plus 185.15 levy must not equal more than 100 percent of the actual cost of 185.16 providing these programs. 185.17 Sec. 71. Minnesota Statutes 1997 Supplement, section 185.18 124.2601, subdivision 6, is amended to read: 185.19 Subd. 6. [AID GUARANTEE.] (a) For fiscal year 1994, any 185.20 adult basic education program that receives less state aid under 185.21 subdivisions 3 and 7 than from the aid formula for fiscal year 185.22 1992shallmust receive the amount of aid it received in fiscal 185.23 year 1992. 185.24 (b) For 1995, 1996, and 1997 fiscal years, an adult basic 185.25 education program that receives aidshallmust receive at least 185.26 the amount of aid it received in fiscal year 1992 under 185.27 subdivisions 3 and 7, plus aid equal to the amount of revenue 185.28 that would have been raised for taxes payable in 1994 under 185.29 Minnesota Statutes 1992, section 124.2601, subdivision 4, minus 185.30 the amount raised under subdivision 4. 185.31 (c) For fiscal year 1998, any adult basic education program 185.32 that receives less state aid than in fiscal year 1997 shall 185.33 receive additional aid equal to 80 percent of the difference 185.34 between its 1997 aid and the amount of aid under subdivision 5. 185.35 For fiscal year 1999 and later, additional aid under this 185.36 paragraph must be reduced by 20 percent each year. 186.1 Sec. 72. Minnesota Statutes 1996, section 124.2601, 186.2 subdivision 7, is amended to read: 186.3 Subd. 7. [PRORATION.] If the total appropriation for adult 186.4 basic education aid is insufficient to pay all approved programs 186.5 the full amount of aid earned, the departmentof children,186.6families, and learning shallmust proportionately reduce each 186.7 approved program's aid. 186.8 Sec. 73. Minnesota Statutes 1996, section 124.2605, is 186.9 amended to read: 186.10 124.2605 [GED TEST FEES.] 186.11 The commissionerof children, families, and learningshall 186.12 pay 60 percent of the fee that is charged to an eligible 186.13 individual for the full battery of a GED test, but not more than 186.14 $20 for an eligible individual. 186.15 Sec. 74. Minnesota Statutes 1997 Supplement, section 186.16 124.2615, subdivision 2, is amended to read: 186.17 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 186.18 receive learning readiness aid if the program plan as required 186.19 by subdivision 1 has been approved by the commissionerof186.20children, families, and learning. 186.21 (b) For fiscal year 1998 and thereafter, a district 186.22shallmust receive learning readiness aid equal to: 186.23 (1) the number of eligible four-year old children in the 186.24 district times the ratio of 50 percent of the total learning 186.25 readiness aid for that year to the total number of eligible 186.26 four-year old children reported to the commissioner for that 186.27 year; plus 186.28 (2) the number of pupils enrolled in the school district 186.29 from families eligible for the free or reduced school lunch 186.30 program times the ratio of 50 percent of the total learning 186.31 readiness aid for that year to the total number of pupils in the 186.32 state from families eligible for the free or reduced school 186.33 lunch program. 186.34 Sec. 75. Minnesota Statutes 1996, section 124.2615, 186.35 subdivision 4, is amended to read: 186.36 Subd. 4. [SEPARATE ACCOUNTS.] The districtshallmust 187.1 deposit learning readiness aid in a separate account within the 187.2 community education fund. 187.3 Sec. 76. Minnesota Statutes 1996, section 124.2711, as 187.4 amended by Laws 1997, chapter 162, article 1, sections 6 and 7, 187.5 is amended to read: 187.6 124.2711 [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] 187.7 Subdivision 1. [REVENUE.] The revenue for early childhood 187.8 family education programs for a school district equals $101.25 187.9 for 1998 and $113.50 for 1999 and later fiscal years times the 187.10 greater of: 187.11 (1) 150; or 187.12 (2) the number of people under five years of age residing 187.13 in theschooldistrict on October 1 of the previous school year. 187.14 Subd. 2. [POPULATION.] For the purposes of subdivision 1, 187.15 data reported to the departmentof children, families, and187.16learningmay be used to determine the number of people under 187.17 five years of age residing in the district. The commissioner, 187.18 with the assistance of the state demographer, shall review the 187.19 number reported by any district operating an early childhood 187.20 family education program. If requested, the district shall 187.21 submit to the commissioner an explanation of its methods and 187.22 other information necessary to document accuracy. If the 187.23 commissioner determines that the district has not provided 187.24 sufficient documentation of accuracy, the commissioner may 187.25 request the state demographer to prepare an estimate of the 187.26 number of people under five years of age residing in the 187.27 district and may use this estimate for the purposes of 187.28 subdivision 1. 187.29 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 187.30 obtain early childhood family education revenue, a district may 187.31 levy an amount equal to the tax rate of .653 percent times the 187.32 adjusted tax capacity of the district for the year preceding the 187.33 year the levy is certified. If the amount of the early 187.34 childhood family education levy would exceed the early childhood 187.35 family education revenue, the early childhood family education 187.36 levyshallmust equal the early childhood family education 188.1 revenue. 188.2 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] If a 188.3 district complies with the provisions of section 121.882, it 188.4shallmust receive early childhood family education aid equal to 188.5 the difference between the early childhood family education 188.6 revenue and the early childhood family education levy. If the 188.7 district does not levy the entire amount permitted, the early 188.8 childhood family education aidshallmust be reduced in 188.9 proportion to the actual amount levied. 188.10 Subd. 4. [USE OF REVENUE RESTRICTED.] Early childhood 188.11 family education revenue may be used only for early childhood 188.12 family education programs. Not more than five percent of early 188.13 childhood family education revenue may be used to administer 188.14 early childhood family education programs.The increase in188.15revenue for fiscal years 1992 and 1993 shall be used to:188.16(1) increase participation of families so that the total188.17participation in early childhood family education programs in188.18the district more nearly reflects the demographic, racial,188.19cultural, and ethnic diversity of the district; and188.20(2) provide programs for families who, because of poverty188.21and other barriers to learning, may need programs designed to188.22meet their needs.188.23 Subd. 5. [HOME VISITING LEVY.] Aschooldistrict that 188.24 enters into a collaborative agreement to provide education 188.25 services and social services to families with young children may 188.26 levy an amount equal to $1.60 times the number of people under 188.27 five years of age residing in the district on September 1 of the 188.28 last school year. Levy revenue under this subdivisionshall188.29 must not be included as revenue under subdivision 1. The 188.30 revenueshallmust be used for home visiting programs under 188.31 section 121.882, subdivision 2b. 188.32 Subd. 6. [RESERVE ACCOUNT.] Early childhood family 188.33 education revenue, which includes aids, levies, fees, grants, 188.34 and all other revenues received by theschooldistrict for early 188.35 childhood family education programs, must be maintained in a 188.36 reserve account within the community service fund. 189.1 Sec. 77. Minnesota Statutes 1996, section 124.2713, 189.2 subdivision 7, is amended to read: 189.3 Subd. 7. [COMMUNITY EDUCATION AID.] A district's community 189.4 education aid is the difference between its community education 189.5 revenue and the community education levy. If the district does 189.6 not levy the entire amount permitted, the community education 189.7 aidshallmust be reduced in proportion to the actual amount 189.8 levied. 189.9 Sec. 78. Minnesota Statutes 1997 Supplement, section 189.10 124.2713, subdivision 8, is amended to read: 189.11 Subd. 8. [USES OF GENERAL REVENUE.] (a) General community 189.12 education revenue may be used for: 189.13 (1) nonvocational, recreational, and leisure time 189.14 activities and programs; 189.15 (2) programs for adults with disabilities, if the programs 189.16 and budgets are approved by the departmentof children,189.17families, and learning; 189.18 (3) adult basic education programs, according to section 189.19 124.26; 189.20 (4) summer programs for elementary and secondary pupils; 189.21 (5) implementation of a youth development plan; 189.22 (6) implementation of a youth service program; 189.23 (7) early childhood family education programs, according to 189.24 section 121.882; and 189.25 (8) extended day programs, according to section 121.88, 189.26 subdivision 10. 189.27 (9) In addition to money from other sources, a district may 189.28 use up to ten percent of its community education revenue for 189.29 equipment that is used exclusively in community education 189.30 programs. This revenue may be used only for the following 189.31 purposes: 189.32 (i) to purchase or lease computers and related materials; 189.33 (ii) to purchase or lease equipment for instructional 189.34 programs; and 189.35 (iii) to purchase textbooks and library books. 189.36 (b) General community education revenue must not be used to 190.1 subsidize the direct activity costs for adult enrichment 190.2 programs. Direct activity costs include, but are not limited 190.3 to, the cost of the activity leader or instructor, cost of 190.4 materials, or transportation costs. 190.5 Sec. 79. Minnesota Statutes 1996, section 124.2715, 190.6 subdivision 3, is amended to read: 190.7 Subd. 3. [LEVY.] A district may levy for a program for 190.8 adults with disabilities an amount up to the amount designated 190.9 in subdivision 2. In the case of a program offered by a group 190.10 of districts, the levy amountshallmust be apportioned among 190.11 the districts according to the agreement submitted to the 190.12 departmentof children, families, and learning. 190.13 Sec. 80. Minnesota Statutes 1996, section 124.2716, 190.14 subdivision 1, is amended to read: 190.15 Subdivision 1. [ELIGIBILITY.] Aschooldistrict that 190.16 offers an extended day program according to section 121.88, 190.17 subdivision 10, is eligible for extended day revenue for the 190.18 additional costs of providing services to children with 190.19 disabilities or to children experiencing family or related 190.20 problems of a temporary nature who participate in the extended 190.21 day program. 190.22 Sec. 81. Minnesota Statutes 1996, section 124.2716, 190.23 subdivision 2, is amended to read: 190.24 Subd. 2. [EXTENDED DAY REVENUE.] The extended day revenue 190.25 for an eligibleschooldistrict equals the approved additional 190.26 cost of providing services to children with disabilities or 190.27 children experiencing family or related problems of a temporary 190.28 nature who participate in the extended day program. 190.29 Sec. 82. Minnesota Statutes 1996, section 124.276, 190.30 subdivision 1, is amended to read: 190.31 Subdivision 1. [ELIGIBILITY.] Aschooldistrict that has a 190.32 family connections program, according to sections 125.70 to 190.33 125.705, for one or more of its teachers is eligible for aid to 190.34 extend the teaching contract of a family connections teacher. 190.35 Sec. 83. Minnesota Statutes 1996, section 124.276, 190.36 subdivision 3, is amended to read: 191.1 Subd. 3. [COMMISSIONER APPROVAL.] The commissioner may 191.2 approve plans and applications for districts throughout the 191.3 state for family connections aid.Application procedures and191.4deadlines shall be established byThe commissioner shall 191.5 establish application procedures and deadlines. 191.6 Sec. 84. Minnesota Statutes 1996, section 124C.12, 191.7 subdivision 2, is amended to read: 191.8 Subd. 2. [ELIGIBILITY.] An applicant for revenue may be 191.9 any one of the following: 191.10 (1) aschooldistrict located in a city of the first class 191.11 offering a program in cooperation with other districts or by 191.12 itself, in one or more areas in the district or in the entire 191.13 district; 191.14 (2) at least two cooperatingschooldistricts located in 191.15 the seven-county metropolitan area but not located in a city of 191.16 the first class; 191.17 (3) a group ofschooldistricts that are all members of the 191.18 same education district; 191.19 (4) an education district; 191.20 (5) a group of cooperatingschooldistricts none of which 191.21 are members of any education district; or 191.22 (6) aschooldistrict. 191.23 Sec. 85. Minnesota Statutes 1996, section 125.702, is 191.24 amended to read: 191.25 125.702 [PROGRAM SELECTION.] 191.26 Subdivision 1. [AUTHORIZATION.] Aschooldistrict or group 191.27 of districts may establish an improved learning program. 191.28 Subd. 2. [RULES AND RIGHTS.] The state board of education 191.29 may waiveschooldistrict compliance with its rules which would 191.30 prevent implementation of an improved learning program. 191.31 Participation in an improved learning program as a 191.32 principal-teacher, counselor-teacher, or career teachershall191.33 must not affect seniority in the district or rights under the 191.34 applicable collective bargaining agreement. 191.35 Subd. 3. [ADDITIONAL FUNDING.] Aschooldistrict providing 191.36 an improved learning program may receive funds for the program 192.1 from private sources and governmental agencies, including state 192.2 or federal funds. 192.3 Sec. 86. Minnesota Statutes 1996, section 125.703, is 192.4 amended to read: 192.5 125.703 [ADVISORY COUNCIL.] 192.6 Theschoolboard of a district providing a family 192.7 connections programshallmust appoint an advisory council. 192.8 Council membersshallmust be selected from the school 192.9 attendance area in which programs are provided. Members of the 192.10 council may include students, teachers, principals, 192.11 administrators and community members. A majority of the members 192.12shallmust be parents with children participating in the local 192.13 program. The local advisory councilshallmust advise the 192.14schoolboard in the development, coordination, supervision, and 192.15 review of the career teacher program. The councilshallmust 192.16 meet at least two times each year with any established community 192.17 education advisory council in the district. Members of the 192.18 council may be members of the community education advisory 192.19 council. The councilshallmust report to the school board. 192.20 Sec. 87. Minnesota Statutes 1996, section 125.704, 192.21 subdivision 1, is amended to read: 192.22 Subdivision 1. [MANDATORY COMPONENTS.] A family 192.23 connections programshallmust include: 192.24 (1) participation by a designated individual as a career 192.25 teacher, principal-teacher, or counselor teacher; 192.26 (2) an emphasis on each individual child's unique learning 192.27 and development needs; 192.28 (3) procedures to give the career teacher a major 192.29 responsibility for leadership of the instructional and 192.30 noninstructional activities of each child beginning with early 192.31 childhood family education; 192.32 (4) procedures to involve parents in the learning and 192.33 development experiences of their children; 192.34 (5) procedures to implement outcome based education by 192.35 focusing on the needs of the learner; 192.36 (6) procedures to coordinate and integrate the 193.1 instructional program with all community education programs; 193.2 (7) procedures to concentrate career teacher programs at 193.3 sites that provide early childhood family education and 193.4 subsequent learning and development programs; and 193.5 (8) procedures for the district to fund the program. 193.6 Sec. 88. Minnesota Statutes 1996, section 125.705, 193.7 subdivision 1, is amended to read: 193.8 Subdivision 1. [STATUS.] A family connections program may 193.9 include a career teacher, principal-teacher, and counselor 193.10 teacher component. The career teacher, principal-teacher, and 193.11 counselor teachershallmust not be the exclusive teacher for 193.12 students assigned to them but shall serve as a primary teacher 193.13 and perform the function of developing and implementing a 193.14 student's overall learning and development program. The career 193.15 teacher, principal-teacher, and counselor teacher may be 193.16 responsible for regular assignments as well as learning and 193.17 development programs for other assigned students. 193.18 Sec. 89. Minnesota Statutes 1996, section 125.705, 193.19 subdivision 3, is amended to read: 193.20 Subd. 3. [STAFF/STUDENT RATIO.] (a) Except as provided in 193.21 clause (b), one career teacher, principal-teacher, or counselor 193.22 teacher shall be assigned for every 125 students. For each 193.23 special education student included in the assignment, the 1:125 193.24 ratioshallmust be reduced by one. 193.25 (b) One principal-teacher shall be assigned for every 50 193.26 students when the principal-teacher is also the principal of the 193.27 school. 193.28 Sec. 90. Minnesota Statutes 1996, section 125.705, 193.29 subdivision 4, is amended to read: 193.30 Subd. 4. [SELECTION; RENEWAL.] (a) Theschoolboard 193.31shallmust establish procedures for teachers, principals, and 193.32 counselors to apply for the position of career teacher, 193.33 principal-teacher, or counselor teacher. The authority for 193.34 selection of career teachers, principal-teachers, and counselor 193.35 teachersshall beis vested in the board and no individual shall 193.36 have a right to employment as a career teacher, 194.1 principal-teacher, or counselor teacher based on seniority or 194.2 order of employment in the district. 194.3 (b) Employment of the career teacher, principal-teacher, 194.4 and counselor teacher may be on a 12-month basis with vacation 194.5 time negotiated individually with the board. The annual 194.6 contract of a career teacher, principal-teacher, or counselor 194.7 teacher may not be renewed, as the board shall see fit;194.8provided, however,. The boardshallmust give anysuch194.9 teacher whose contract as a career teacher, principal-teacher, 194.10 or counselor teacher it declines to renew for the following year 194.11 written notice to that effect before April 15. If the board 194.12 fails to renew the contract of a career teacher, 194.13 principal-teacher, or counselor teacher, that individualshall194.14 must be reinstated to another position in the district if 194.15 eligible pursuant to section 125.12 or 125.17. 194.16 Sec. 91. Minnesota Statutes 1996, section 125.705, 194.17 subdivision 5, is amended to read: 194.18 Subd. 5. [DUTIES.] The career teacher, principal-teacher, 194.19 and counselor teachershall beis responsible for: 194.20 (1) the overall education, learning, and development plan 194.21 of assigned students.This plan shall be designed byThe career 194.22 teacher, principal-teacher, and counselor teacher must design 194.23 this plan with the student, parents, and other faculty, 194.24 andshallmust seek to maximize the learning and development 194.25 potential and maturation level of each pupil; 194.26 (2) measuring the proficiency of the assigned students and 194.27 assisting other staff in identifying pupil needs and making 194.28 appropriate educational and subject groupings; 194.29 (3) when part of the district's plan, taking responsibility 194.30 for the parent and early childhood education of assigned 194.31 students; 194.32 (4) designing and being responsible for program components 194.33 which meet special learning needs of high potential and talented 194.34 students; 194.35 (5) coordinating the ongoing, year-to-year learning and 194.36 development program for assigned students; and 195.1 (6) developing learning and development portfolios. 195.2 Sec. 92. Minnesota Statutes 1997 Supplement, section 195.3 126.77, subdivision 1, is amended to read: 195.4 Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The 195.5 commissioner of children, families, and learning, in 195.6 consultation with the commissioners of health and human 195.7 services, state minority councils, battered women's programs, 195.8 sexual assault centers, representatives of religious 195.9 communities, and the assistant commissioner of the office of 195.10 drug policy and violence prevention, shall assist districts on 195.11 request in developing or implementing a violence prevention 195.12 program for students in kindergarten to grade 12 that can be 195.13 integrated into existing curriculum. The purpose of the program 195.14 is to help students learn how to resolve conflicts within their 195.15 families and communities in nonviolent, effective ways. 195.16 (b) Each district is encouraged to integrate into its 195.17 existing curriculum a program for violence prevention that 195.18 includes at least: 195.19 (1) a comprehensive, accurate, and age appropriate 195.20 curriculum on violence prevention, nonviolent conflict 195.21 resolution, sexual, racial, and cultural harassment, and student 195.22 hazing that promotes equality, respect, understanding, effective 195.23 communication, individual responsibility, thoughtful decision 195.24 making, positive conflict resolution, useful coping skills, 195.25 critical thinking, listening and watching skills, and personal 195.26 safety; 195.27 (2) planning materials, guidelines, and other accurate 195.28 information on preventing physical and emotional violence, 195.29 identifying and reducing the incidence of sexual, racial, and 195.30 cultural harassment, and reducing child abuse and neglect; 195.31 (3) a special parent education component of early childhood 195.32 family education programs to prevent child abuse and neglect and 195.33 to promote positive parenting skills, giving priority to 195.34 services and outreach programs for at-risk families; 195.35 (4) involvement of parents and other community members, 195.36 including the clergy, business representatives, civic leaders, 196.1 local elected officials, law enforcement officials, and the 196.2 county attorney; 196.3 (5) collaboration with local community services, agencies, 196.4 and organizations that assist in violence intervention or 196.5 prevention, including family-based services, crisis services, 196.6 life management skills services, case coordination services, 196.7 mental health services, and early intervention services; 196.8 (6) collaboration among districts andSCsservice 196.9 cooperatives; 196.10 (7) targeting early adolescents for prevention efforts, 196.11 especially early adolescents whose personal circumstances may 196.12 lead to violent or harassing behavior; 196.13 (8) opportunities for teachers to receive in-service 196.14 training or attend other programs on strategies or curriculum 196.15 designed to assist students in intervening in or preventing 196.16 violence in school and at home; and 196.17 (9) administrative policies that reflect, and a staff that 196.18 models, nonviolent behaviors that do not display or condone 196.19 sexual, racial, or cultural harassment or student hazing. 196.20 (c) The department may provide assistance at a neutral site 196.21 to a nonpublic school participating in a district's program. 196.22 Sec. 93. Minnesota Statutes 1996, section 126.78, 196.23 subdivision 4, is amended to read: 196.24 Subd. 4. [GRANT PROCEEDS.] A successful applicant 196.25shallmust use the grant money to develop and implement or to 196.26 continue a violence prevention program according to the terms of 196.27 the grant application. 196.28 Sec. 94. Minnesota Statutes 1996, section 126.84, 196.29 subdivision 1, is amended to read: 196.30 Subdivision 1. [ESTABLISHMENT.] The commissioner of 196.31 children, families, and learning, in consultation with the 196.32 commissioner of human services, shall make male responsibility 196.33 and fathering grants to youth or parenting programs that 196.34 collaborate withschooldistricts to educate young people, 196.35 particularly males ages ten to 21, on the responsibilities of 196.36 parenthood. 197.1 Sec. 95. Minnesota Statutes 1996, section 126.84, 197.2 subdivision 3, is amended to read: 197.3 Subd. 3. [EXPECTED OUTCOMES.] Grant recipientsshallmust 197.4 use the funds for programs designed to prevent teen pregnancy 197.5 and to prevent crime in the long term. Recipient programs must 197.6 assist youth to: 197.7 (1) understand the connection between sexual behavior, 197.8 adolescent pregnancy, and the roles and responsibilities of 197.9 marriage and parenting; 197.10 (2) understand the long-term responsibility of fatherhood; 197.11 (3) understand the importance of fathers in the lives of 197.12 children; 197.13 (4) acquire parenting skills and knowledge of child 197.14 development; and 197.15 (5) find community support for their roles as fathers and 197.16 nurturers of children. 197.17 Sec. 96. Minnesota Statutes 1996, section 126.84, 197.18 subdivision 4, is amended to read: 197.19 Subd. 4. [GRANT APPLICATIONS.] (a) An application for a 197.20 grant may be submitted by a youth or parenting program whose 197.21 purpose is to reduce teen pregnancy or teach child development 197.22 and parenting skills in collaboration with aschooldistrict. 197.23 Each grant application must include a description of the 197.24 program's structure and components, including collaborative and 197.25 outreach efforts; an implementation and evaluation plan to 197.26 measure the program's success; a plan for using males as 197.27 instructors and mentors; and a cultural diversity plan to ensure 197.28 that staff or teachers will reflect the cultural backgrounds of 197.29 the population served and that the program content is culturally 197.30 sensitive. 197.31 (b) Grant recipients must, at a minimum, provide education 197.32 in responsible parenting and child development, responsible 197.33 decision-making related to marriage and relationships, and the 197.34 legal implications of paternity. Grant recipients also must 197.35 provide public awareness efforts in the collaborating school 197.36 district. Grant recipients may offer support groups, health and 198.1 nutrition education, and mentoring and peer teaching. 198.2 (c) A grant applicant must establish an advisory committee 198.3 to assist the applicant in planning and implementation of a 198.4 grant. The advisory committee must include student 198.5 representatives, adult males from the community, representatives 198.6 of community organizations, teachers, parent educators, and 198.7 representatives of family social service agencies. 198.8 Sec. 97. Minnesota Statutes 1996, section 126.84, 198.9 subdivision 5, is amended to read: 198.10 Subd. 5. [ADMINISTRATION.] The commissionerof children,198.11families, and learningshall administer male responsibility and 198.12 fathering grants. The commissioner shall establish a grant 198.13 review committee composed of teachers and representatives of 198.14 community organizations, student organizations, and education or 198.15 family social service agencies that offer parent education 198.16 programs. 198.17 Sec. 98. Minnesota Statutes 1996, section 126A.01, is 198.18 amended to read: 198.19 126A.01 [ENVIRONMENTAL EDUCATION GOALS AND PLAN.] 198.20 The environmental education program described in this 198.21chaptersection and section 126A.06 has these goals for the 198.22 pupils and other citizens of this state: 198.23 (a) Pupils and citizens should be able to apply informed 198.24 decision-making processes to maintain a sustainable lifestyle. 198.25 In order to do so, citizens should: 198.26 (1) understand ecological systems; 198.27 (2) understand the cause and effect relationship between 198.28 human attitudes and behavior and the environment; 198.29 (3) be able to evaluate alternative responses to 198.30 environmental issues before deciding on alternative courses of 198.31 action; and 198.32 (4) understand the effects of multiple uses of the 198.33 environment. 198.34 (b) Pupils and citizens shall have access to information 198.35 and experiences needed to make informed decisions about actions 198.36 to take on environmental issues. 199.1 (c) For the purposes of thischaptersection and section 199.2 126A.06, "state plan" means "Greenprint for Minnesota: A State 199.3 Plan for Environmental Education." 199.4 Sec. 99. Minnesota Statutes 1996, section 126B.01, 199.5 subdivision 2, is amended to read: 199.6 Subd. 2. [FUNDING.] Work-based learning programs 199.7 incorporating post-secondary instruction implemented under this 199.8chaptersection and sections 126B.03 to 126B.10 shall provide 199.9 for student funding according to section 123.3514. 199.10 Sec. 100. Minnesota Statutes 1996, section 126B.01, 199.11 subdivision 4, is amended to read: 199.12 Subd. 4. [PARTNERSHIP GRANTS.] The councilshallmust 199.13 award grants to implement local education and employment 199.14 transitionsystems to local education and employment transition199.15 partnerships established under section 126B.10. Grants under 199.16 this section may be used for the local education and employment 199.17 transitions system, youth apprenticeship and other work-based 199.18 learning programs, youth employer programs, youth 199.19 entrepreneurship programs, and other programs and purposes the 199.20 council determines fulfill the purposes of the education and 199.21 employment transitions system. The councilshallmust evaluate 199.22 grant proposals on the basis of the elements required in the 199.23 local plan described in section 126B.10, subdivision 3. The 199.24 councilshallmust develop and publicize the grant application 199.25 process and review and comment on the proposals submitted. 199.26 Priority in awarding grants must be given to local partnerships 199.27 that include multiple communities and a viable base of 199.28 educational, work-based learning, and employment opportunities. 199.29 Sec. 101. Minnesota Statutes 1996, section 126B.10, is 199.30 amended to read: 199.31 126B.10 [EDUCATION AND EMPLOYMENT TRANSITIONS 199.32 PARTNERSHIPS.] 199.33 Subdivision 1. [LOCAL PARTNERSHIPS; ESTABLISHMENT.] Local 199.34 education and employment transitions partnerships may be 199.35 established to implement local education and employment 199.36 transitions systems. Local partnershipsshallmust represent 200.1 multiple sectors in the community, including, at a minimum, 200.2 representatives of employers, primary and secondary education, 200.3 labor and professional organizations, workers, learners, 200.4 parents, community-based organizations, and to the extent 200.5 possible, post-secondary education. 200.6 Subd. 2. [BOARD.] A local education and employment 200.7 transitions partnershipshallmust establish a governing board 200.8 for planning and implementing work-based and other applied 200.9 learning programs. The boardshallmust consist of at least one 200.10 representative from each member of the education and employment 200.11 transitions partnership. A majority of the board must consist 200.12 of representatives of local or regional employers. 200.13 Subd. 3. [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 200.14 SYSTEMS.] A local education and employment transitions 200.15 partnershipshallmust assess the needs of employers, employees, 200.16 and learners, and develop a plan for implementing and achieving 200.17 the objectives of a local or regional education and employment 200.18 transitions system. The planshallmust provide for a 200.19 comprehensive local system for assisting learners and workers in 200.20 making the transition from school to work or for retraining in a 200.21 new vocational area. The objectives of a local education and 200.22 employment transitions system include: 200.23 (1) increasing the effectiveness of the educational 200.24 programs and curriculum of elementary, secondary, and 200.25 post-secondary schools and the work site in preparing students 200.26 in the skills and knowledge needed to be successful in the 200.27 workplace; 200.28 (2) implementing learner outcomes for students in grades 200.29 kindergarten through 12 designed to introduce the world of work 200.30 and to explore career opportunities, including nontraditional 200.31 career opportunities; 200.32 (3) eliminating barriers to providing effective integrated 200.33 applied learning, service-learning, or work-based curriculum; 200.34 (4) increasing opportunities to apply academic knowledge 200.35 and skills, including skills needed in the workplace, in local 200.36 settings which include the school, school-based enterprises, 201.1 post-secondary institutions, the workplace, and the community; 201.2 (5) increasing applied instruction in the attitudes and 201.3 skills essential for success in the workplace, including 201.4 cooperative working, leadership, problem-solving, and respect 201.5 for diversity; 201.6 (6) providing staff training for vocational guidance 201.7 counselors, teachers, and other appropriate staff in the 201.8 importance of preparing learners for the transition to work, and 201.9 in methods of providing instruction that incorporate applied 201.10 learning, work-based learning, and service-learning experiences; 201.11 (7) identifying and enlisting local and regional employers 201.12 who can effectively provide work-based or service-learning 201.13 opportunities, including, but not limited to, apprenticeships, 201.14 internships, and mentorships; 201.15 (8) recruiting community and workplace mentors including 201.16 peers, parents, employers and employed individuals from the 201.17 community, and employers of high school students; 201.18 (9) identifying current and emerging educational, training, 201.19 and employment needs of the area or region, especially within 201.20 industries with potential for job growth; 201.21 (10) improving the coordination and effectiveness of local 201.22 vocational and job training programs, including vocational 201.23 education, adult basic education, tech prep, apprenticeship, 201.24 service-learning, youth entrepreneur, youth training and 201.25 employment programs administered by the commissioner of economic 201.26 security, and local job training programs under the Job Training 201.27 Partnership Act, United States Code, title 29, section 1501, et 201.28 seq.; 201.29 (11) identifying and applying for federal, state, local, 201.30 and private sources of funding for vocational or applied 201.31 learning programs; 201.32 (12) providing students with current information and 201.33 counseling about career opportunities, potential employment, 201.34 educational opportunities in post-secondary institutions, 201.35 workplaces, and the community, and the skills and knowledge 201.36 necessary to succeed; 202.1 (13) providing educational technology, including 202.2 interactive television networks and other distance learning 202.3 methods, to ensure access to a broad variety of work-based 202.4 learning opportunities; 202.5 (14) including students with disabilities in a district's 202.6 vocational or applied learning program and ways to serve at-risk 202.7 learners through collaboration with area learning centers under 202.8 sections 124C.45 to 124C.49, or other alternative programs; and 202.9 (15) providing a warranty to employers, post-secondary 202.10 education programs, and other post-secondary training programs, 202.11 that learners successfully completing a high school work-based 202.12 or applied learning program will be able to apply the knowledge 202.13 and work skills included in the program outcomes or graduation 202.14 requirements. The warranty shall require education and training 202.15 programs to continue to work with those learners that need 202.16 additional skill development until they can demonstrate 202.17 achievement of the program outcomes or graduation requirements. 202.18 Subd. 4. [ANNUAL REPORTS.] A local education and 202.19 employment transitions partnershipshallmust annually publish a 202.20 report and submit information to the council as required. The 202.21 reportshallmust include information required by the council 202.22 for the statewide system performance assessment. The 202.23 reportshallmust be available to the public in the communities 202.24 served by the local education and employment transitions 202.25 partnership. The reportshallmust be published no later than 202.26 September 1 of the year following the year in which the data was 202.27 collected. 202.28 Sec. 102. [REPEALER.] 202.29 Minnesota Statutes 1996, section 126.84, subdivision 6, is 202.30 repealed. 202.31 Sec. 103. [INSTRUCTION TO REVISOR.] 202.32 The revisor of statutes shall renumber each section of 202.33 Minnesota Statutes listed in column A with the number listed in 202.34 column B. The revisor shall also make necessary cross-reference 202.35 changes consistent with the renumbering. 202.36 Column A Column B 203.1 126A.01 115A.073 203.2 126A.06 115A.074 203.3 123.70 120C.05 203.4 123.701 120C.06 203.5 123.702, subd. 1 120C.07, subd. 1 203.6 subd. 1a subd. 2 203.7 subd. 1b subd. 3 203.8 subd. 2 subd. 4 203.9 subd. 3 subd. 5 203.10 subd. 4 subd. 6 203.11 subd. 4a subd. 7 203.12 subd. 5 subd. 8 203.13 subd. 6 subd. 9 203.14 subd. 7 subd. 10 203.15 123.704 120C.08 203.16 123.7045 120C.09 203.17 123.35, subd. 17 120C.11 203.18 126.202 120C.12 203.19 121.203 120C.13 203.20 121.831 120C.20 203.21 124.2615 120C.21 203.22 121.835 120C.22 203.23 121.882, subd. 1 120C.25, subd. 1 203.24 subd. 2 subd. 2 203.25 subd. 2a subd. 3 203.26 subd. 2b subd. 4 203.27 subd. 3 subd. 5 203.28 subd. 4 subd. 6 203.29 subd. 5 subd. 7 203.30 subd. 6 subd. 8 203.31 subd. 7 subd. 9 203.32 subd. 7a subd. 10 203.33 subd. 8 subd. 11 203.34 subd. 9 subd. 12 203.35 124.2711, subd. 1 120C.26, subd. 1 203.36 subd. 2 subd. 2 204.1 subd. 2a subd. 3 204.2 subd. 3 subd. 4 204.3 subd. 4 subd. 5 204.4 subd. 5 subd. 6 204.5 subd. 6 subd. 7 204.6 121.85 120C.30 204.7 121.88, subd. 1 120C.31, subd. 1 204.8 subd. 2 subd. 2 204.9 subd. 2a subd. 3 204.10 subd. 3 subd. 4 204.11 subd. 4 subd. 5 204.12 subd. 5 subd. 6 204.13 subd. 6 subd. 7 204.14 subd. 7 subd. 8 204.15 subd. 8 subd. 9 204.16 subd. 9 subd. 10 204.17 subd. 10 subd. 11 204.18 124.2713, subd. 1 120C.32, subd. 1 204.19 subd. 2 subd. 2 204.20 subd. 3 subd. 3 204.21 subd. 5 subd. 4 204.22 subd. 6 subd. 5 204.23 subd. 6a subd. 6 204.24 subd. 6b subd. 7 204.25 subd. 7 subd. 8 204.26 subd. 8 subd. 9 204.27 subd. 9 subd. 10 204.28 subd. 10 subd. 11 204.29 124.2714 120C.33 204.30 124.2716 120C.34 204.31 121.8355, subd. 1 120C.35, subd. 1 204.32 subd. 2 subd. 2 204.33 subd. 2a subd. 3 204.34 subd. 3 subd. 4 204.35 subd. 3a subd. 5 204.36 subd. 4 subd. 6 205.1 subd. 5 subd. 7 205.2 subd. 6 subd. 8 205.3 subd. 7 subd. 9 205.4 125.70 120C.37 205.5 125.701 120C.38 205.6 125.702 120C.39 205.7 125.703 120C.40 205.8 125.704 120C.41 205.9 125.705 120C.42 205.10 125.276, subd. 1 120C.43, subd. 1 205.11 subd. 2a subd. 2 205.12 subd. 3 subd. 3 205.13 subd. 4 subd. 4 205.14 124A.291 120C.44 205.15 126.77 120C.45 205.16 126.78 120C.46 205.17 126.79 120C.47 205.18 126.84 120C.48 205.19 121.615 120C.50 205.20 121.70 120C.51 205.21 121.701 120C.52 205.22 121.702 120C.53 205.23 121.704 120C.54 205.24 121.705 120C.55 205.25 121.706 120C.56 205.26 121.707 120C.57 205.27 121.708 120C.58 205.28 121.709 120C.59 205.29 121.710 120C.60 205.30 126B.01 120C.62 205.31 126B.03, subd. 2 120C.63, subd. 1 205.32 subd. 3 subd. 2 205.33 126B.06 120C.64 205.34 126B.10 120C.65 205.35 121.885 120C.67 205.36 123.35, subd. 8 120C.70 206.1 124.26, subd. 1b 120C.71, subd. 1 206.2 subd. 1c subd. 2 206.3 subd. 2 subd. 3 206.4 124.2601 120C.72 206.5 124.261 120C.73 206.6 124.2605 120C.74 206.7 124.2715 120C.76 206.8 121.201 120C.77 206.9 121.612 120C.82 206.10 124.255 120C.84 206.11 124C.10 120C.86 206.12 124C.11 120C.87 206.13 124C.12 120C.88 206.14 ARTICLE 4 206.15 CHAPTER 121A 206.16 STATE ADMINISTRATION 206.17 Section 1. Minnesota Statutes 1996, section 121.11, 206.18 subdivision 7, is amended to read: 206.19 Subd. 7. [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 206.20 The state board of education shall adopt goals for and exercise 206.21 general supervision over public schools and public educational 206.22 agencies in the state, classify and standardize public 206.23 elementary and secondary schools, and prepare for them outlines 206.24 and suggested courses of study. The state board shall develop a 206.25 plan to attain the adopted goals. At the state board's request, 206.26 the commissioner may assign department of children, families, 206.27 and learning staff to assist the state board in attaining its 206.28 goals. The commissioner shall explain to the state board in 206.29 writing any reason for refusing or delaying a request for staff 206.30 assistance. The state board may recognize educational 206.31 accrediting agencies for the sole purposes of sections 120.101, 206.32 120.102, and 120.103. 206.33 Sec. 2. Minnesota Statutes 1997 Supplement, section 206.34 121.1113, subdivision 1, is amended to read: 206.35 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 206.36 with advice from experts with appropriate technical 207.1 qualifications and experience and stakeholders, shall include in 207.2 the comprehensive assessment system, for each grade level to be 207.3 tested, a single statewide norm-referenced or 207.4 criterion-referenced test, or a combination of a norm-referenced 207.5 and a criterion-referenced test, which shall be highly 207.6 correlated with the state's graduation standards and 207.7 administered annually to all students in the third, fifth, and 207.8 eighth grades. The commissioner shall establish one or more 207.9 months during which schools shall administer the tests to 207.10 students each school year. The Minnesota basic skills tests in 207.11 reading and mathematics shall fulfill students' eighth grade 207.12 testing requirements. 207.13 (b) In addition, at the secondary level, districts shall 207.14 assess student performance in all required learning areas and 207.15 selected required standards within each area of theprofiles207.16 profile of learning. The testing instruments and testing 207.17 process shall be determined by the commissioner. The results 207.18 shall be aggregated at the site and district level. The testing 207.19 shall be administered beginning in the 1999-2000 school year and 207.20 thereafter. 207.21 (c) The comprehensive assessment system shall include an 207.22 evaluation of school site and school district performance levels 207.23 during the 1997-1998 school year and thereafter using an 207.24 established performance baseline developed from students' test 207.25 scores under this section that records, at a minimum, students' 207.26 unweighted mean test scores in each tested subject, a second 207.27 performance baseline that reports, at a minimum, the same 207.28 unweighted mean test scores of only those students enrolled in 207.29 the school by January 1 of the previous school year, and a third 207.30 performance baseline that reports the same unweighted test 207.31 scores of all students except those students receiving limited 207.32 English proficiency instruction. The evaluation also shall 207.33 record separately, in proximity to the performance baselines, 207.34 the percentages of students who are eligible to receive a free 207.35 or reduced price school meal, demonstrate limited English 207.36 proficiency, or are eligible to receive special education 208.1 services. 208.2 (d) In addition to the testing and reporting requirements 208.3 under paragraphs (a), (b), and (c), the commissioner, in 208.4 consultation with the state board of education, shall include 208.5 the following components in the statewide educational 208.6 accountability and public reporting system: 208.7 (1) uniform statewide testing of all third, fifth, eighth, 208.8 and post-eighth grade students with exemptions, only with parent 208.9 or guardian approval, from the testing requirement only for 208.10 those very few students for whom the student's individual 208.11 education plan team under section 120.17, subdivision 2, 208.12 determines that the student is incapable of taking a statewide 208.13 test, or a limited English proficiency student under section 208.14 126.262, subdivision 2, if the student has been in the United 208.15 States for fewer than 12 months and for whom special language 208.16 barriers exist, such as the student's native language does not 208.17 have a written form or the district does not have access to 208.18 appropriate interpreter services for the student's native 208.19 language; 208.20 (2) educational indicators that can be aggregated and 208.21 compared across school districts and across time on a statewide 208.22 basis; 208.23 (3) students' scores on the American College Test; 208.24 (4) participation in the National Assessment of Educational 208.25 Progress so that the state can benchmark its performance against 208.26 the nation and other states, and, where possible, against other 208.27 countries, and contribute to the national effort to monitor 208.28 achievement; and 208.29 (5) basic skills and advanced competencies connecting 208.30 teaching and learning to high academic standards, assessment, 208.31 and transitions to citizenship and employment. 208.32 (e) Districts must report exemptions under paragraph (d), 208.33 clause (1), to the commissioner consistent with a format 208.34 provided by the commissioner. 208.35 Sec. 3. Minnesota Statutes 1996, section 121.1115, 208.36 subdivision 1, is amended to read: 209.1 Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 209.2 REPORTING.] Consistent with the state board of education process 209.3 to adopt a results-oriented graduation rule under section 209.4 121.11, subdivision 7c, the state boardof educationand the 209.5 departmentof children, families, and learning, in consultation 209.6 with education and other system stakeholders,shallmust 209.7 establish a coordinated and comprehensive system of educational 209.8 accountability and public reporting that promotes higher 209.9 academic achievement. 209.10 Sec. 4. Minnesota Statutes 1996, section 121.1115, 209.11 subdivision 2, is amended to read: 209.12 Subd. 2. [STATISTICAL ADJUSTMENTS.] In developing policies 209.13 and assessment processes to hold schools andschooldistricts 209.14 accountable for high levels of academic standards, including the 209.15 profile of learning, the commissioner shall aggregate student 209.16 data over time to report student performance levels measured at 209.17 the school district, regional, or statewide level. When 209.18 collecting and reporting the data, the commissioner shall: (1) 209.19 acknowledge the impact of significant demographic factors such 209.20 as residential instability, the number of single parent 209.21 families, parents' level of education, and parents' income level 209.22 on school outcomes; and (2) organize and report the data so that 209.23 state and local policymakers can understand the educational 209.24 implications of changes in districts' demographic profiles over 209.25 time. Any report the commissioner disseminates containing 209.26 summary data on student performance must integrate student 209.27 performance and the demographic factors that strongly correlate 209.28 with that performance. 209.29 Sec. 5. Minnesota Statutes 1996, section 124.078, is 209.30 amended to read: 209.31 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 209.32 A state permanent school fund advisory committee is 209.33 established to advise the department of natural resources on the 209.34 management of permanent school fund land, which is held in trust 209.35 for the school districts of the state. The advisory committee 209.36shallmust consist of the following persons or their designees: 210.1 the chairs of the education committees of the legislature, the 210.2 chairs of the senate committee on finance and house committee on 210.3 ways and means, the commissioner of children, families, and 210.4 learning, one superintendent from a nonmetropolitan district, 210.5 and one superintendent from a metropolitan area district. The 210.6 school district superintendents shall be appointed by the 210.7 commissioner of children, families, and learning. 210.8 The advisory committee shall review the policies of the 210.9 department of natural resources on management of school trust 210.10 fund lands and shall recommend necessary changes in policy and 210.11 implementation in order to ensure provident utilization of the 210.12 permanent school fund lands. 210.13 Sec. 6. Minnesota Statutes 1996, section 124.08, is 210.14 amended to read: 210.15 124.08 [SCHOOL ENDOWMENT FUND,; DESIGNATION.] 210.16 For the purpose of aid to public schools, a school 210.17 endowment fund is established. 210.18 The school endowment fund shall consist of the income from 210.19 the permanent school fund. The commissionerof children,210.20families, and learningmay accept for and on behalf of the 210.21 permanent school fund a donation of cash, marketable securities, 210.22 or other personal property. A noncash donation, other than a 210.23 donation of marketable securities, must be disposed of for cash 210.24 as soon as the commissioner can obtain fair market value for the 210.25 donation. Marketable securities may be disposed of at the 210.26 discretion of the state board of investment consistent with 210.27 sections 11A.16 and 11A.24. A cash donation and the cash 210.28 receipts from a donation disposed of for cash must be credited 210.29 immediately to the permanent school fund. Earnings from 210.30 marketable securities are earnings of the permanent school fund. 210.31 Sec. 7. Minnesota Statutes 1996, section 124.09, is 210.32 amended to read: 210.33 124.09 [SCHOOL ENDOWMENT FUND,; APPORTIONMENT.] 210.34 The commissioner shall apportion the school endowment fund 210.35shall be apportionedsemiannuallyby the commissioner,on the 210.36 first Monday in March and September in each year, to districts 211.1 whose schools have been in session at least nine months. The 211.2 apportionment shall be in proportion to the number of pupils in 211.3 average daily membership during the preceding year; provided,211.4that. The apportionment shall not be paid to a district for 211.5 pupils for whom tuition is received by the district. 211.6 Sec. 8. Minnesota Statutes 1996, section 124.10, 211.7 subdivision 1, is amended to read: 211.8 Subdivision 1. [COPY TO COMMISSIONER OF FINANCE.] The 211.9 commissioner shall furnish a copy of the apportionment of the 211.10 school endowment fundshall be furnished by the commissionerto 211.11 the commissioner of finance, who thereupon shall draw warrants 211.12 on the state treasury, payable to the several districts, for the 211.13 amount due each district. There is hereby annually appropriated 211.14 from the school endowment fund the amount of such apportionments. 211.15 Sec. 9. Minnesota Statutes 1996, section 124.10, 211.16 subdivision 2, is amended to read: 211.17 Subd. 2. [APPORTIONMENTS TO DISTRICTS.] The county auditor 211.18 each year shall apportion to theschooldistricts within the 211.19 county the amount received from power line taxes under section 211.20 273.42, liquor licenses, fines, estrays, and other sources 211.21 belonging to the general fund. The apportionmentsshallmust be 211.22 made in proportion to each district's net tax capacity within 211.23 the county in the prior year. The apportionmentsshallmust be 211.24 made and amounts distributed to theschooldistricts at the 211.25 times provided for the settlement and distribution of real and 211.26 personal property taxes under sections 276.09, 276.11, and 211.27 276.111, except that all of the power line taxes apportioned to 211.28 aschooldistrict from the county school fundshallmust be 211.29 included in the first half distribution of property taxes to the 211.30schooldistrict. No district shall receive any part of the 211.31 money received from liquor licenses unless all sums paid for 211.32 such licenses in such district are apportioned to the county 211.33 school fund. 211.34 Sec. 10. Minnesota Statutes 1996, section 124.12, is 211.35 amended to read: 211.36 124.12 [MANNER OF PAYMENT OF STATE AIDS.] 212.1Subd. 2.It shall be the duty of the commissionerof212.2children, families, and learningto deliver to the commissioner 212.3 of finance a certificate for each district entitled to receive 212.4 state aid under the provisions of this chapter. Upon the 212.5 receipt of such certificate, it shall be the duty of the 212.6 commissioner of finance to draw a warrant upon the state 212.7 treasurer in favor of the district for the amount shown by each 212.8 certificate to be due to the district. The commissioner of 212.9 finance shall transmit such warrants to the district together 212.10 with a copy of the certificate prepared by the commissioner. 212.11 Sec. 11. Minnesota Statutes 1996, section 124.14, 212.12 subdivision 2, is amended to read: 212.13 Subd. 2. [ERRORS IN DISTRIBUTION.] On determining that the 212.14 amount of state aid distributed to a school district is in 212.15 error, the commissioner is authorized to adjust the amount of 212.16 aid consistent with this subdivision. On determining that the 212.17 amount of aid is in excess of the school district's entitlement, 212.18 the commissioner is authorized to recover the amount of the 212.19 excess by any appropriate means. Notwithstanding the fiscal 212.20 years designated by the appropriation, the excess may be 212.21 recovered by reducing future aid payments to theschool212.22 district. Notwithstanding any law to the contrary, if the aid 212.23 reduced is not of the same type as that overpaid, theschool212.24 districtshallmust adjust all necessary financial accounts to 212.25 properly reflect all revenues earned in accordance with the 212.26 uniform financial accounting and reporting standards pursuant to 212.27 sections 121.904 to 121.917. Notwithstanding the fiscal years 212.28 designated by the appropriation, on determining that the amount 212.29 of an aid paid is less than the school district's entitlement, 212.30 the commissioner is authorized to increase such aid from the 212.31 current appropriation. 212.32 Sec. 12. Minnesota Statutes 1996, section 124.14, 212.33 subdivision 3, is amended to read: 212.34 Subd. 3. [AUDITS.] The commissioner shall establish 212.35 procedures for conducting and shall conduct audits ofschool212.36 district records and files for the purpose of verifyingschool213.1 district pupil counts, levy limitations, and aid entitlements. 213.2 The commissioner shall establish procedures for selecting and 213.3 shall select districts to be audited. Disparities, if any, 213.4 between pupil counts, levy limitations, or aid entitlements 213.5 determined by audit ofschooldistrict records and files and 213.6 data reported byschooldistricts in reports, claims and other 213.7 documents shall be reviewed by the commissioner who shall order 213.8 increases or decreases accordingly. Whenever possible, the 213.9 commissioner shall audit at least 25 districts each year 213.10 pursuant to this subdivision. 213.11 Sec. 13. Minnesota Statutes 1996, section 124.14, 213.12 subdivision 3a, is amended to read: 213.13 Subd. 3a. [LESS THAN 25 DISTRICTS AUDITED.] If the 213.14 commissioner audits fewer than 25schooldistricts in a fiscal 213.15 year pursuant to subdivision 3, the commissioner shall report 213.16 the reasons for the number audited to the following legislative 213.17 committees: house education, house appropriations, senate 213.18 education, and senate finance. 213.19 Sec. 14. Minnesota Statutes 1996, section 124.14, 213.20 subdivision 4, is amended to read: 213.21 Subd. 4. [FINAL DECISION AND RECORDS.] A reduction of aid 213.22 under this section may be appealed to the state board of 213.23 education and its decision shall be final. Public schools shall 213.24 at all times be open to the inspection of the commissioner, and. 213.25 The accounts and records of any districtshallmust be open to 213.26 inspection by the state auditor, the state board, or the 213.27 commissioner for the purpose of audits conducted under this 213.28 section. Each district shall keep for a minimum of three years 213.29 at least the following: (1) identification of the annual 213.30 session days held, together with a record of the length of each 213.31 session day, (2) a record of each pupil's daily attendance, with 213.32 entrance and withdrawal dates, and (3) identification of the 213.33 pupils transported who are reported for transportation aid. 213.34 Sec. 15. Minnesota Statutes 1996, section 124.14, 213.35 subdivision 6, is amended to read: 213.36 Subd. 6. [ADJUSTMENT APPROPRIATION.] There is annually 214.1 appropriated from the general fund to the departmentof214.2children, families, and learningany additional amounts 214.3 necessary for the adjustments made pursuant to section 124.155, 214.4 subdivision 1. 214.5 Sec. 16. Minnesota Statutes 1996, section 124.14, 214.6 subdivision 7, is amended to read: 214.7 Subd. 7. [APPROPRIATION TRANSFERS.] If a direct 214.8 appropriation from the general fund to the departmentof214.9children, families, and learningfor any education aid or grant 214.10 authorized in this chapter and chapters 121, 123, 124A, 124C, 214.11 125, 126, and 134 exceeds the amount required, the commissioner 214.12of children, families, and learningmay transfer the excess to 214.13 any education aid or grant appropriation that is insufficient. 214.14 However, section 124A.032 applies to a deficiency in the direct 214.15 appropriation for general education aid. Excess appropriations 214.16shallmust be allocated proportionately among aids or grants 214.17 that have insufficient appropriations. The commissioner of 214.18 finance shall make the necessary transfers among appropriations 214.19 according to the determinations of the commissionerof children,214.20families, and learning. If the amount of the direct 214.21 appropriation for the aid or grant plus the amount transferred 214.22 according to this subdivision is insufficient, the commissioner 214.23 shall prorate the available amount among eligible districts. 214.24 The state is not obligated for any additional amounts. 214.25 Sec. 17. Minnesota Statutes 1996, section 124.14, 214.26 subdivision 8, is amended to read: 214.27 Subd. 8. [HEALTH AND SAFETY AID TRANSFER.] The 214.28 commissionerof children, families, and learning, with the 214.29 approval of the commissioner of finance, annually may transfer 214.30 an amount from the appropriation for health and safety aid to 214.31 the appropriation for debt service aid for the same fiscal 214.32 year. The amount of the transfer equals the amount necessary to 214.33 fund any shortage in the debt service aid appropriation created 214.34 by a data correction that occurs between November 1 and June 30 214.35 of the preceding fiscal year. 214.36 Sec. 18. Minnesota Statutes 1996, section 124.15, 215.1 subdivision 2, is amended to read: 215.2 Subd. 2. [VIOLATIONS OF LAW.] The commissioner shall 215.3 reduce the district's special state aid for any school year 215.4 whenever the board of the district authorizes or permitswithin215.5the districtviolations of law within the district by: 215.6 (1)employment in a public school of the district of215.7 employing a teacher who does not hold a valid teaching license 215.8 or permit, orin a public school; 215.9 (2) noncompliance with a mandatory rule of general 215.10 application promulgated by the state board in accordance with 215.11 statutein the absence of, unless special circumstances 215.12makingmake enforcementthereofinequitable,contrary to the215.13best interest of, or imposingimpose an extraordinary hardship 215.14 on,the districtaffected, or, or the rule is contrary to the 215.15 district's best interests; 215.16 (3) the district's continued performanceby the districtof 215.17 a contract made for the rental of rooms or buildings for school 215.18 purposes or for the rental of any facility owned or operated by 215.19 or under the direction of any private organization,whichif the 215.20 contract has been disapprovedwhere, the time for review of the 215.21 determination of disapproval has expired, and no proceeding for 215.22 review is pending, or; 215.23 (4) any practice which is a violation of sections 1 and 2 215.24 of article 13 of the Constitution of the state of Minnesota, or; 215.25 (5) failure toprovidereasonably provide forthea 215.26 resident pupil's school attendanceto which a resident pupil is215.27entitledunder Minnesota Statutes,; or 215.28 (6) noncompliance with state laws prohibiting 215.29 discrimination because of race, color, creed, religion, national 215.30 origin, sex, age, marital status, status with regard to public 215.31 assistance or disability, as defined in section 363.03,. 215.32the special state aid to which a district is otherwise entitled215.33for any school year shall be reducedThe reduction must be made 215.34 in the amount and upon the procedure provided in this section 215.35 or, in the case of the violation stated in clause (1), upon the 215.36 procedure provided in section 124.19, subdivision 3. 216.1 Sec. 19. Minnesota Statutes 1996, section 124.15, 216.2 subdivision 2a, is amended to read: 216.3 Subd. 2a. [ASSURANCE OF COMPLIANCE.] After consultation 216.4 with the commissioner of human rights, the state board of 216.5 education shall adopt rules in conformance with chapter 216.6 14which. The rules must directschooldistricts to file with 216.7 the commissioner of children, families, and learning assurances 216.8 of compliance with state and federal laws prohibiting 216.9 discrimination andwhichspecify the information required to be 216.10 submitted in support of the assurances. The commissionerof216.11children, families, and learningshall provide copies of the 216.12 assurances and the supportive information to the commissioner of 216.13 human rights. If, after reviewing the assurances and the 216.14 supportive information it appears that one or more violations of 216.15 the Minnesota human rights act are occurring in the district, 216.16 the commissioner of human rights shall notify the commissioner 216.17of children, families, and learningof the violations, and the 216.18 commissioner of children, families, and learning may then 216.19 proceed pursuant to subdivision 3. 216.20 Sec. 20. Minnesota Statutes 1996, section 124.15, 216.21 subdivision 3, is amended to read: 216.22 Subd. 3. [NOTICE TO BOARD.] When it appears thatone or216.23more of the violationsan enumerated violation is occurring in a 216.24 district, the commissioner shallforthwithnotify the board of 216.25 that district in writingthereof.SuchThe noticeshallmust 216.26 specify the violations, set a reasonable time within which the 216.27 districtshallmust correct the specified violations, describe 216.28 the correction required, and advise that if the correction is 216.29 not made within the time allowed, special state aids to the 216.30 district will be reduced. The time allowed for correction may 216.31 be extended by the commissioner if there is reasonable ground 216.32 therefor. 216.33 Sec. 21. Minnesota Statutes 1996, section 124.15, 216.34 subdivision 4, is amended to read: 216.35 Subd. 4. [DISPUTE VIOLATIONS; HEARING.] The board to which 216.36 such notice is given may, by a majority vote of the whole board, 217.1 decide to dispute that the specified violation exists or that 217.2 the time allowed is reasonable or the correction specified is 217.3 correct, or that the commissioner may reduce aids, in which case217.4written notice of such decision shall be given. The board must 217.5 give the commissioner written notice of the decision. If the 217.6 commissioner, aftersuchfurther investigation as the 217.7 commissioner deems necessary, adheres to the previous notice, 217.8suchthe board shall be entitled to a hearing by the state board 217.9, in which event a. The state board must set a hearing time and 217.10 placeshall be set therefor and noticeand the board of the 217.11 district must be given notice by mailto the board of the217.12district. The state boardshallmust adopt rules governing the 217.13 proceedings for hearingswhich shall. The hearings must be 217.14 designed to give a full and fair hearing and permit interested 217.15 parties an opportunity to produce evidence relating to the 217.16 issues involved.SuchThe rules may provide that any question 217.17 of fact to be determinedupon such reviewat the hearing may be 217.18 referred to one or more members of the board or to an employee 217.19 of the state board acting as a referee to hear evidence and 217.20 reportto the state boardthe testimony taken to the state board. 217.21 The state board, oranya person designated to receive evidence 217.22upon a review under this actat a hearing, shall have the same 217.23 right to issue subpoenas and administer oaths and parties to the 217.24reviewhearing shall have the same right to subpoenas issued as 217.25 areaccorded with respect toallowed for proceedings before the 217.26 industrial commission.There shall beA stenographic 217.27 record must be made of all testimony given and other proceedings 217.28 duringsuchthe hearing, and as far as. If practicable, rules 217.29 governingreceptionadmission of evidence in courts shallobtain217.30 apply to the hearing. The decision of the state boardshall217.31 must be in writing and the controlling facts upon which the 217.32 decision is madeshallmust be stated in sufficient detail to 217.33 apprise the parties and the reviewing court of the basis and 217.34 reasonoffor the decision. The decisionshallmust be confined 217.35 to whetheror notany of the specified violationsor any of them217.36 existed at the date of the commissioner's first notice, 218.1 whethersuchthe violationsas did existwere corrected within 218.2 the time permitted, and whethersuchthe violations require 218.3 reduction of the state aids under this section. 218.4 Sec. 22. Minnesota Statutes 1996, section 124.15, 218.5 subdivision 5, is amended to read: 218.6 Subd. 5. [VIOLATION; AID REDUCTION.] The commissioner 218.7 shall not reduce state aids payable to the district if the 218.8 violation specified is corrected within the time permitted, or 218.9 if the commissioner on being notified of the district board's 218.10 decision to dispute decides the violation does not exist, or if 218.11 the state board decides after hearing no violation specified in 218.12 the commissioner's notice existed at the time ofitthe notice, 218.13 or thatany that existedthe violations were corrected within 218.14 the time permitted, there shall be no reduction of state aids218.15payable to the school district. Otherwise state aids payable to 218.16 the district for the year in which the violation occurred shall 218.17 be reduced as follows: The total amount of state aids to which 218.18 the district may be entitled shall be reduced in the proportion 218.19 that the period during which a specified violation continued, 218.20 computed from the last day of the time permitted for correction, 218.21 bears to the total number of days school is held in the district 218.22 during the year in which a violation exists, multiplied by 60 218.23 percent of the basic revenue, as defined in section 124A.22, 218.24 subdivision 2, of the district for that year. 218.25 Sec. 23. Minnesota Statutes 1996, section 124.15, 218.26 subdivision 6, is amended to read: 218.27 Subd. 6. [REDUCTION IN AIDS PAYABLE.] Reductions in aid 218.28 under this section and section 124.19shallmust be from general 218.29 education aid. If there is not sufficient general education aid 218.30 remaining to be paid for the school year in which the violation 218.31 occurred, the reduction shall be from the other aids listed in 218.32 section 124.155, subdivision 2, that are payable to the district 218.33 for that year in the order in which the aids are listed in 218.34 section 124.155, subdivision 2. If there is not a sufficient 218.35 amount of state aids remaining payable to the district for the 218.36 school year in which the violation occurred to permit the full 219.1 amount of reduction required, that part of the required 219.2 reduction not taken from that school year's aids will be taken 219.3 from the state aids payable to the district for the next school 219.4 year, and the reduction will be made from the various aids 219.5 payable for the next year in the order above specified. 219.6 Sec. 24. Minnesota Statutes 1996, section 124.15, 219.7 subdivision 8, is amended to read: 219.8 Subd. 8. [NOTICE TO DISTRICT.] Any noticeto begiven to 219.9 the board of a district will be deemed given when a copy thereof 219.10 is mailed, registered, to the superintendent of the district, if 219.11 there is a superintendent, and to the clerk of the board of the 219.12 district, unless. If it is shown that neither the 219.13 superintendent nor the clerk in fact received such notice in the 219.14 ordinary course of mail,in which eventthen the time for 219.15 correction will be accordingly extended by the commissioner so 219.16 that a reasonable time will be allowed from actual receipt of 219.17 notice for correction. If notice is sent by the commissioner 219.18 with respect to a violation which is continued by the district 219.19 in a succeeding year, no separate notice for that violation for 219.20 the succeeding year will be required. Proceedings initiated by 219.21 such notice shall include any continuing violation 219.22 notwithstanding that a part thereof occurs in a year different 219.23 fromthatthe year in which it started. The commissioner may 219.24 require reasonable proof of the time that a violation ceased for 219.25 the determination of the amount of aids to be withheld. Costs 219.26 and disbursements of the review by the district court, exclusive 219.27 of those incurred in the administrative proceedings, may be 219.28 taxed against the losing party and in the event taxed against 219.29 the stateshallmust be paid from the appropriations made to the 219.30 department for the payment of special state aids. 219.31 Sec. 25. Minnesota Statutes 1997 Supplement, section 219.32 124.155, subdivision 1, is amended to read: 219.33 Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state 219.34 aids and credits enumerated in subdivision 2 payable to any 219.35schooldistrict for that fiscal year shall be adjusted, in the 219.36 order listed, by an amount equal to (1) the amount the district 220.1 recognized as revenue for the prior fiscal year pursuant to 220.2 section 121.904, subdivision 4a, clause (b), minus (2) the 220.3 amount the district recognizes as revenue for the current fiscal 220.4 year pursuant to section 121.904, subdivision 4a, clause (b). 220.5 For the purposes of making the aid adjustment under this 220.6 subdivision, the amount the district recognizes as revenue for 220.7 either the prior fiscal year or the current fiscal year pursuant 220.8 to section 121.904, subdivision 4a, clause (b), shall not 220.9 include any amount levied pursuant to sections 124.315, 220.10 subdivision 4, 124.912, subdivisions 1, paragraph (2), 2, and 3, 220.11 124.916, subdivisions 1, 2, and 3, paragraphs 4, 5, and 6, 220.12 124.918, subdivision 6, and 124A.03, subdivision 2. Payment 220.13 from the permanent school fund shall not be adjusted pursuant to 220.14 this section. The school district shall be notified of the 220.15 amount of the adjustment made to each payment pursuant to this 220.16 section. 220.17 Sec. 26. Minnesota Statutes 1997 Supplement, section 220.18 124.155, subdivision 2, is amended to read: 220.19 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 220.20 subdivision 1 shall be used to adjust the following state aids 220.21 and credits in the order listed: 220.22 (1) general education aid authorized in section 124A.23; 220.23 (2) secondary vocational aid authorized in section 124.573; 220.24 (3) special education aid authorized in sections 124.32 and 220.25 124.3201; 220.26 (4) school-to-work program aid for children with a 220.27 disability authorized in section 124.574; 220.28 (5) aid for pupils of limited English proficiency 220.29 authorized in section 124.273; 220.30 (6) transportation aid authorized in section 124.225; 220.31 (7) community education programs aid authorized in section 220.32 124.2713; 220.33 (8) adult education aid authorized in section 124.26; 220.34 (9) early childhood family education aid authorized in 220.35 section 124.2711; 220.36 (10) capital expenditure aid authorized in section 124.83; 221.1 (11) school district cooperation aid authorized in section 221.2 124.2727; 221.3 (12) assurance of mastery aid according to section 124.311; 221.4 (13) homestead and agricultural credit aid, disparity 221.5 credit and aid, and changes to credits for prior year 221.6 adjustments according to section 273.1398, subdivisions 2, 3, 4, 221.7 and 7; 221.8 (14) attached machinery aid authorized in section 273.138, 221.9 subdivision 3; 221.10 (15) alternative delivery aid authorized in section 221.11 124.322; 221.12 (16) special education equalization aid authorized in 221.13 section 124.321; 221.14 (17) special education excess cost aid authorized in 221.15 section 124.323; 221.16 (18) learning readiness aid authorized in section 124.2615; 221.17 and 221.18 (19) cooperation-combination aid authorized in section 221.19 124.2725. 221.20 (b) The commissionerof children, families, and learning221.21 shall schedule the timing of the adjustments to state aids and 221.22 credits specified in subdivision 1, as close to the end of the 221.23 fiscal year as possible. 221.24 Sec. 27. Minnesota Statutes 1996, section 124.195, 221.25 subdivision 1, is amended to read: 221.26 Subdivision 1. [APPLICABILITY.] This section applies to 221.27 all aids or credits paid by the commissionerof children,221.28families, and learningfrom the general fund toschooldistricts. 221.29 Sec. 28. Minnesota Statutes 1997 Supplement, section 221.30 124.195, subdivision 2, is amended to read: 221.31 Subd. 2. [DEFINITIONS.] (a) The term "other district 221.32 receipts" means payments by county treasurers pursuant to 221.33 section 276.10, apportionments from the school endowment fund 221.34 pursuant to section 124.09, apportionments by the county auditor 221.35 pursuant to section 124.10, subdivision 2, and payments to 221.36 school districts by the commissioner of revenue pursuant to 222.1 chapter 298. 222.2 (b) The term "cumulative amount guaranteed" means the sum 222.3 of the following: 222.4 (1) one-third of the final adjustment payment according to 222.5 subdivision 6; plus 222.6 (2) the product of 222.7 (i) the cumulative disbursement percentage shown in 222.8 subdivision 3; times 222.9 (ii) the sum of 222.10 90 percent of the estimated aid and credit entitlements 222.11 paid according to subdivision 10; plus 222.12 100 percent of the entitlements paid according to 222.13 subdivisions 8 and 9; plus 222.14 the other district receipts; plus 222.15 the final adjustment payment according to subdivision 6. 222.16 (c) The term "payment date" means the date on which state 222.17 payments toschooldistricts are made by the electronic funds 222.18 transfer method. If a payment date falls on a Saturday, a 222.19 Sunday, or a weekday which is a legal holiday, the payment shall 222.20 be made on the immediately following business day. The 222.21 commissionerof children, families, and learningmay make 222.22 payments on dates other than those listed in subdivision 3, but 222.23 only for portions of payments from any preceding payment dates 222.24 which could not be processed by the electronic funds transfer 222.25 method due to documented extenuating circumstances. 222.26 Sec. 29. Minnesota Statutes 1996, section 124.195, 222.27 subdivision 3, is amended to read: 222.28 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] The commissioner 222.29of children, families, and learningshall pay to aschool222.30 district on the dates indicated an amount computed as follows: 222.31 the cumulative amount guaranteed minus the sum of (a) the 222.32 district's other district receipts through the current payment, 222.33 and (b) the aid and credit payments through the immediately 222.34 preceding payment. For purposes of this computation, the 222.35 payment dates and the cumulative disbursement percentages are as 222.36 follows: 223.1 Payment date Percentage 223.2 Payment 1 July 15: 2.25 223.3 Payment 2 July 30: 4.50 223.4 Payment 3 August 15: the greater of (a) the final 223.5 adjustment for the prior fiscal year for 223.6 the state paid property tax credits 223.7 established in section 273.1392, or 223.8 (b) the amount needed to provide 6.75 percent 223.9 Payment 4 August 30: 9.0 223.10 Payment 5 September 15: 12.75 223.11 Payment 6 September 30: 16.50 223.12 Payment 7 October 15: the greater of (a) one-half of 223.13 the final adjustment for the prior fiscal year 223.14 for all aid entitlements except state paid 223.15 property tax credits, or (b) the amount needed to 223.16 provide 20.75 percent 223.17 Payment 8 October 30: the greater of (a) one-half of the 223.18 final adjustment for the prior fiscal year for all 223.19 aid entitlements except state paid property 223.20 tax credits, or (b) the amount needed 223.21 to provide 25.0 percent 223.22 Payment 9 November 15: 31.0 223.23 Payment 10 November 30: 37.0 223.24 Payment 11 December 15: 40.0 223.25 Payment 12 December 30: 43.0 223.26 Payment 13 January 15: 47.25 223.27 Payment 14 January 30: 51.5 223.28 Payment 15 February 15: 56.0 223.29 Payment 16 February 28: 60.5 223.30 Payment 17 March 15: 65.25 223.31 Payment 18 March 30: 70.0 223.32 Payment 19 April 15: 73.0 223.33 Payment 20 April 30: 79.0 223.34 Payment 21 May 15: 82.0 223.35 Payment 22 May 30: 90.0 223.36 Payment 23 June 20: 100.0 224.1 Sec. 30. Minnesota Statutes 1996, section 124.195, 224.2 subdivision 3a, is amended to read: 224.3 Subd. 3a. [APPEAL.] The commissioner, in consultation with 224.4 the commissioner of finance, may revise the payment dates and 224.5 percentages in subdivision 3 for a district if it is determined 224.6 that there is an emergency or there are serious cash flow 224.7 problems in the district that cannot be resolved by issuing 224.8 warrants or other forms of indebtedness. The commissioner shall 224.9 establish a process and criteria forschooldistricts to appeal 224.10 the payment dates and percentages established in subdivision 3. 224.11 Sec. 31. Minnesota Statutes 1996, section 124.195, 224.12 subdivision 3b, is amended to read: 224.13 Subd. 3b. [CASH FLOW ADJUSTMENT.] During each year in 224.14 which the cash flow low points for August, September, and 224.15 October estimated by the commissioner of finance for invested 224.16 treasurer's cash exceeds $360,000,000, the commissionerof224.17children, families, and learningshall increase the cumulative 224.18 disbursement percentages established in subdivision 3 to the 224.19 following amounts: 224.20 Payment 3 August 15: 12.75 percent 224.21 Payment 4 August 30: 15.00 percent 224.22 Payment 5 September 15: 17.25 percent 224.23 Payment 6 September 30: 19.50 percent 224.24 Payment 7 October 15: 21.75 percent 224.25 Sec. 32. Minnesota Statutes 1996, section 124.195, 224.26 subdivision 4, is amended to read: 224.27 Subd. 4. [PAYMENT LIMIT.] Subdivision 3 does not authorize 224.28 the commissionerof children, families, and learningto pay to a 224.29 district's operating funds an amount of state general fund cash 224.30 that exceeds the sum of: 224.31 (a) its estimated aid and credit payments for the current 224.32 year according to subdivision 10; 224.33 (b) its actual aid payments according to subdivisions 8 and 224.34 9; and 224.35 (c) the final adjustment payment for the prior year. 224.36 Sec. 33. Minnesota Statutes 1996, section 124.195, 225.1 subdivision 5, is amended to read: 225.2 Subd. 5. [COMMISSIONER'S ASSUMPTIONS.] For purposes of 225.3 determining the amount of state general fund cash to be paid to 225.4schooldistricts pursuant to subdivision 3, the commissionerof225.5children, families, and learningshall: 225.6(a)(1) assume that the payments to school districts by the 225.7 county treasurer of revenues accruing to the fiscal year of 225.8 receipt pursuant to section 276.11 are made in the following 225.9 manner: 225.10(1)(i) 50 percent within seven business days of each due 225.11 date; and 225.12(2)(ii) 100 percent within 14 business days of each due 225.13 date; 225.14(b)(2) assume that the payments toschooldistricts by the 225.15 county treasurer of revenues accruing to the fiscal year of 225.16 receipt pursuant to section 276.111 are made in the following 225.17 manner: 225.18(1)(i) 50 percent within seven business days of the 225.19 October 15 due date; 225.20(2)(ii) 100 percent within 14 business days of the October 225.21 15 due date; and 225.22(3)(iii) 100 percent within ten business days of the 225.23 November 15 due date.; and 225.24(c)(3) assume that the payments to school districts by 225.25 county auditors pursuant to section 124.10, subdivision 2, are 225.26 made at the end of the months indicated in that subdivision. 225.27 Sec. 34. Minnesota Statutes 1996, section 124.195, 225.28 subdivision 6, is amended to read: 225.29 Subd. 6. [FINAL ADJUSTMENT PAYMENT.] For all aids and 225.30 credits paid according to subdivision 10, the final adjustment 225.31 paymentshallmust include the amounts necessary to pay the 225.32 district's full aid entitlement for the prior year based on 225.33 actual data. This paymentshallmust be used to correct all 225.34 estimates used for the payment schedule in subdivision 3. The 225.35 paymentshallmust be made as specified in subdivision 3. In 225.36 the event actual data are not available, the final adjustment 226.1 payment may be computed based on estimated data. A corrected 226.2 final adjustment paymentshallmust be made when actual data are 226.3 available. 226.4 Sec. 35. Minnesota Statutes 1997 Supplement, section 226.5 124.195, subdivision 7, is amended to read: 226.6 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 226.7 fiscal year state general fund payments for a district 226.8 nonoperating fundshallmust be made at 90 percent of the 226.9 estimated entitlement during the fiscal year of the 226.10 entitlement. This amount shall be paid in 12 equal monthly 226.11 installments. The amount of the actual entitlement, after 226.12 adjustment for actual data, minus the payments made during the 226.13 fiscal year of the entitlementshallmust be paid prior to 226.14 October 31 of the following school year. The commissioner may 226.15 make advance payments of homestead and agricultural credit aid 226.16 for a district's debt service fund earlier than would occur 226.17 under the preceding schedule if the district submits evidence 226.18 showing a serious cash flow problem in the fund. The 226.19 commissioner may make earlier payments during the year and, if 226.20 necessary, increase the percent of the entitlement paid to 226.21 reduce the cash flow problem. 226.22 Sec. 36. Minnesota Statutes 1997 Supplement, section 226.23 124.195, subdivision 10, is amended to read: 226.24 Subd. 10. [AID PAYMENT PERCENTAGE.] Except as provided in 226.25 subdivisions 8, 9, and 11, each fiscal year, all education aids 226.26 and credits in this chapter and chapters121,123, 124A, 226.27 124B, 124D, 125, 126, 134, and section 273.1392, shall be paid 226.28 at 90 percent of the estimated entitlement during the fiscal 226.29 year of the entitlement. The final adjustment payment, 226.30 according to subdivision 6,shallmust be the amount of the 226.31 actual entitlement, after adjustment for actual data, minus the 226.32 payments made during the fiscal year of the entitlement. 226.33 Sec. 37. Minnesota Statutes 1996, section 124.195, 226.34 subdivision 14, is amended to read: 226.35 Subd. 14. [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 226.36 education aids cash flow account is established in the state 227.1 treasury for the purpose of ensuring the timely payment of state 227.2 aids or credits toschooldistricts as provided in this 227.3 section. In the event the account balance in any appropriation 227.4 from the general fund to the departmentof children, families,227.5and learningfor education aids or credits is insufficient to 227.6 make the next scheduled payment or payments, the commissionerof227.7children, families, and learningis authorized to transfer funds 227.8 from the education aids cash flow account to the accounts that 227.9 are insufficient. 227.10 (b) For purposes of this subdivision, an account may have 227.11 an insufficient balance only as a result of some districts being 227.12 overpaid based on revised estimates for the relevant annual aid 227.13 or credit entitlements. When the overpayment amounts are 227.14 recovered from the pertinent districts, the commissionerof227.15children, families, and learningshall transfer those amounts to 227.16 the education aids cash flow account. The commissioner shall 227.17 determine when it is not feasible to recover the overpayments in 227.18 a timely manner from the district's future aid payments and 227.19 notify the district of the amount that is to be refunded to the 227.20 state.SchoolDistricts are encouraged to make such refunds 227.21 promptly. The commissioner may approve a schedule for making a 227.22 refund when a district demonstrates that its cash flow is 227.23 inadequate to promptly make the refund in full. 227.24 (c) There is annually appropriated from the general fund to 227.25 the education aids cash flow account the additional amount 227.26 necessary to ensure the timely payment of state aids or credits 227.27 toschooldistricts as provided in this section. For any fiscal 227.28 year, the appropriation authorized in this subdivisionshall227.29 must not exceed an amount equal to two-tenths of one percent of 227.30 the total general fund appropriations in that year for education 227.31 aids and credits. At the close of each fiscal year, the amount 227.32 of actual transfers plus anticipated transfers required in 227.33 paragraph (b)shallmust equal the authorized amounts 227.34 transferred in paragraph (a) so that the net effect on total 227.35 general fund spending for education aids and credits is zero. 227.36 Sec. 38. Minnesota Statutes 1996, section 124.196, is 228.1 amended to read: 228.2 124.196 [CHANGE IN PAYMENT OF AIDS AND CREDITS.] 228.3 If the commissioner of finance determines that 228.4 modifications in the payment schedule would reduce the need for 228.5 state short-term borrowing, the commissionerof children,228.6families, and learningshall modify payments toschooldistricts 228.7 according to this section. The modificationsshallmust begin 228.8 no sooner than September 1 of each fiscal year, andshallmust 228.9 remain in effect until no later than May 30 of that same fiscal 228.10 year. In calculating the payment to aschooldistrict pursuant 228.11 to section 124.195, subdivision 3, the commissioner may subtract 228.12 the sum specified in that subdivision, plus an additional amount 228.13 no greater than the following: 228.14 (1) the net cash balance in each of the district'sfour228.15 operating funds on June 30 of the preceding fiscal year; minus 228.16 (2) the product of $150 times the number of actual pupil 228.17 units in the preceding fiscal year; minus 228.18 (3) the amount of payments made by the county treasurer 228.19 during the preceding fiscal year, pursuant to section 276.11, 228.20 which is considered revenue for the current school year. 228.21 However, no additional amount shall be subtracted if the total 228.22 of the net unappropriated fund balances in the district's four 228.23 operating funds on June 30 of the preceding fiscal year, is less 228.24 than the product of $350 times the number of actual pupil units 228.25 in the preceding fiscal year. The net cash balanceshallmust 228.26 include all cash and investments, less certificates of 228.27 indebtedness outstanding, and orders not paid for want of funds. 228.28 A district may appeal the payment schedule established by 228.29 this section according to the procedures established in section 228.30 124.195, subdivision 3a. 228.31 Sec. 39. Minnesota Statutes 1996, section 124.2131, 228.32 subdivision 1, is amended to read: 228.33 Subdivision 1. [ADJUSTED NET TAX CAPACITY.] (a) 228.34 [COMPUTATION.] The department of revenueshallmust annually 228.35 conduct an assessment/sales ratio study of the taxable property 228.36 in each school district in accordance with the procedures in 229.1 paragraphs (b) and (c). Based upon the results of this 229.2 assessment/sales ratio study, the department of revenueshall229.3 must determine an aggregate equalized net tax capacity for the 229.4 various classes of taxable property in eachschooldistrict, 229.5 which tax capacity shall be designated as the adjusted net tax 229.6 capacity. The adjusted net tax capacities shall be determined 229.7 using the net tax capacity percentages in effect for the 229.8 assessment year following the assessment year of the study. The 229.9 department of revenueshallmust make whatever estimates are 229.10 necessary to account for changes in the classification system. 229.11 The department of revenue may incur the expense necessary to 229.12 make the determinations. The commissioner of revenue may 229.13 reimburse any county or governmental official for requested 229.14 services performed in ascertaining the adjusted net tax 229.15 capacity. On or before March 15 annually, the department of 229.16 revenue shall file with the chair of the tax committee of the 229.17 house of representatives and the chair of the committee on taxes 229.18 and tax laws of the senate a report of adjusted net tax 229.19 capacities. On or before June 15 annually, the department of 229.20 revenue shall file its final report on the adjusted net tax 229.21 capacities established by the previous year's assessments and 229.22 the current year's net tax capacity percentages with the 229.23 commissioner of children, families, and learning and each county 229.24 auditor for thoseschooldistricts for which the auditor has the 229.25 responsibility for determination of local tax rates. A copy of 229.26 the report so filed shall be mailed to the clerk of each 229.27 district involved and to the county assessor or supervisor of 229.28 assessments of the county or counties in which each district is 229.29 located. 229.30 (b) [METHODOLOGY.] In making its annual assessment/sales 229.31 ratio studies, the department of revenueshallmust use a 229.32 methodology consistent with the most recent Standard on 229.33 Assessment Ratio Studies published by the assessment standards 229.34 committee of the International Association of Assessing 229.35 Officers. The commissioner of revenue shall supplement this 229.36 general methodology with specific procedures necessary for 230.1 execution of the study in accordance with other Minnesota laws 230.2 impacting the assessment/sales ratio study. The commissioner 230.3 shall document these specific procedures in writing and shall 230.4 publish the procedures in the State Register, but these 230.5 procedures will not be considered "rules" pursuant to the 230.6 Minnesota Administrative Procedure Act. For purposes of this 230.7 section, sections 270.12, subdivision 2, clause (8), and 278.05, 230.8 subdivision 4, the commissioner of revenue shall exclude from 230.9 the assessment/sales ratio study the sale of any nonagricultural 230.10 property which does not contain an improvement, if (1) the 230.11 statutory basis on which the property's taxable value as most 230.12 recently assessed is less than market value as defined in 230.13 section 273.11, or (2) the property has undergone significant 230.14 physical change or a change of use since the most recent 230.15 assessment. 230.16 (c) [AGRICULTURAL LANDS.] For purposes of determining the 230.17 adjusted net tax capacity of agricultural lands for the 230.18 calculation of adjusted net tax capacities, the market value of 230.19 agricultural landsshallmust be the price for which the 230.20 property would sell in an arms length transaction. 230.21 (d) [FORCED SALES.] The commissioner of revenue may 230.22 include forced sales in the assessment/sales ratio studies if it 230.23 is determined by the commissioner of revenue that these forced 230.24 sales indicate true market value. 230.25 (e) [STIPULATED VALUES AND ABATEMENTS.] The estimated 230.26 market value to be used in calculating sales ratiosshallmust 230.27 be the value established by the assessor before any stipulations 230.28 resulting from appeals by property owners and before any 230.29 abatement unless the abatement was granted for the purpose of 230.30 correcting mere clerical errors. 230.31 (f) [SALES OF INDUSTRIAL PROPERTY.] Separate sales 230.32 ratiosshallmust be calculated for commercial property and for 230.33 industrial property. These two classes shall be combined only 230.34 in jurisdictions in which there is not an adequate sample of 230.35 sales in each class. 230.36 Sec. 40. Minnesota Statutes 1996, section 124.2131, 231.1 subdivision 2, is amended to read: 231.2 Subd. 2. [ADJUSTED NET TAX CAPACITY; GROWTH LIMIT.] In the 231.3 calculation of adjusted net tax capacities for 1987 and each 231.4 year thereafter, the commissioner of revenue shall not increase 231.5 the adjusted net tax capacity of taxable property for anyschool231.6 district over the adjusted net tax capacity established and 231.7 filed with the commissionerof children, families, and learning231.8 for the immediately preceding year by more than the greater of 231.9 (1) 19 percent of the certified adjusted net tax capacity 231.10 established and filed with the commissioner of children, 231.11 families, and learning for the year immediately preceding, or 231.12 (2) 40 percent of the difference between the district's total 231.13 adjusted net tax capacity for the current year calculated 231.14 without the application of this subdivision and the district's 231.15 certified adjusted net tax capacity established and filed with 231.16 the commissionerof children, families, and learningfor the 231.17 immediately preceding year. 231.18 Sec. 41. Minnesota Statutes 1996, section 124.2131, 231.19 subdivision 3a, is amended to read: 231.20 Subd. 3a. [CAPTURED TAX CAPACITY ADJUSTMENT.] In 231.21 calculating adjusted net tax capacity, the commissioner of 231.22 revenue shall increase the adjusted net tax capacity of aschool231.23 district containing a tax increment financing district for which 231.24 an election is made under section 469.1782, subdivision 1, 231.25 clause (1). The amount of the increase equals the captured net 231.26 tax capacity of the tax increment financing district in the year 231.27 preceding the first taxes payable year in which the special law 231.28 permits collection beyond that permitted by the general law 231.29 duration limit that otherwise would apply. The addition applies 231.30 beginning for aid and levy for the first taxes payable year in 231.31 which the special law permits collection of increment beyond 231.32 that permitted by the general law duration limit that otherwise 231.33 would apply. The addition continues to apply for each taxes 231.34 payable year the district remains in effect. 231.35 Sec. 42. Minnesota Statutes 1996, section 124.2131, 231.36 subdivision 5, is amended to read: 232.1 Subd. 5. [ADJUSTED NET TAX CAPACITY; APPEALS.]Should232.2anyIf a district, within 30 days after receipt of a copy of a 232.3 report filed with the commissionerof children, families, and232.4learningmade pursuant to subdivision 1 or 3,beis of the 232.5 opinion that the commissioner of revenue has made an error in 232.6 the determination of theschooldistrict's market value, it may 232.7 appeal from the report or portion thereof relating to theschool232.8 district to the commissioner of revenue for a review and 232.9 determination of the matters contained in the appeal. The 232.10 commissioner of revenue shall advise theschooldistrict of the 232.11 determination within 30 days. If theschooldistrict wishes to 232.12 appeal the determination of the commissioner of revenue, it must 232.13 file a notice of appeal with the tax court, as provided in 232.14 subdivisions 6 to 11 within ten days of the notice of 232.15 determination from the commissioner of revenue. 232.16 Sec. 43. Minnesota Statutes 1996, section 124.2131, 232.17 subdivision 6, is amended to read: 232.18 Subd. 6. [NOTICE OF APPEAL.] Theschooldistrictshall232.19 must file with the court administrator of the tax court a notice 232.20 of appeal from the determination of the commissioner of revenue 232.21 fixing the market value of theschooldistrict, and such notice 232.22shallmust show the basis of the alleged error. A copy of 232.23suchthe notice of appealshallmust be served upon the 232.24 commissioner of revenue, and proof of serviceshallmust be 232.25 filed with the court administrator. 232.26 Sec. 44. Minnesota Statutes 1996, section 124.2131, 232.27 subdivision 7, is amended to read: 232.28 Subd. 7. [HEARING.] Upon receipt of the notice of appeal 232.29 the tax courtshallmust review the notice of appeal and 232.30 determine whether it appears from the allegations and proofs 232.31 therein contained that an error has been made in the 232.32 determination by the commissioner of revenue of the market value 232.33 of the property in the school district. If the court finds it 232.34 probable that such an error has been made, itshallmust notice 232.35 the matter for hearing; otherwise, itshallmust dismiss the 232.36 appeal and notify the parties thereof.Hearing shallHearings 233.1 must be set and held in the same manner as other hearings of the 233.2 tax court are set and heard, except that an appeal filed under 233.3 subdivision 5shallmust take precedence over other appeals 233.4 pending before the court. The attorney general shall represent 233.5 the commissioner of revenue. The Administrative Procedure Act, 233.6 sections 14.09 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 233.7 14.69, shall apply to hearings insofar as it is applicable. 233.8 Sec. 45. Minnesota Statutes 1996, section 124.2131, 233.9 subdivision 8, is amended to read: 233.10 Subd. 8. [TAX COURT DETERMINATION.] The tax court shall 233.11 hear, consider, and determine such appeal, de novo upon the 233.12 issues made by the notice of appeal, if a hearing has been 233.13 granted thereon. At the conclusion of the hearing, the court 233.14shallmust: (1) file findings of fact, or (2) refer the issues 233.15 to the commissioner of revenue with instructions and 233.16 recommendations for a determination and correction of the market 233.17 value of the appealingschooldistrict. The decision of the tax 233.18 court, if it decides the matter de novo, shall have the same 233.19 force and effect as a determination by the commissioner of 233.20 revenue in the first instance under this section, and the 233.21 commissioner of revenueshallmust be notified thereof. If the 233.22 matter is rereferred to the commissioner of revenue, a 233.23 redetermination by the commissioner of revenue in accordance 233.24 with the recommendations of the tax courtshallmust likewise 233.25 have the same force and effect as a determination by it in the 233.26 first instance under this section. 233.27 Sec. 46. Minnesota Statutes 1996, section 124.2131, 233.28 subdivision 9, is amended to read: 233.29 Subd. 9. [HEARING EXAMINER.] In addition to the powers and 233.30 duties of the tax court as prescribed by chapter 271,and any233.31act amendatory thereof,any hearing ordered pursuant tothe233.32provisions hereunderthis section may be heard by a hearing 233.33 examiner in lieu of one or more judges of the tax court. If a 233.34 hearing is conducted by a hearing examiner, such hearing 233.35 examiner shall exercise the same powers conferred by law upon 233.36 one or more judges of the tax court. The hearing examiner shall 234.1 report to the court. The court is authorized to make findings 234.2 of fact based on the report of the hearing examiner in the same 234.3 manner as is required by these provisions when the hearing is 234.4 conducted by the court. The tax court may employ hearing 234.5 examiners upon such terms and conditions as it shall prescribe. 234.6 A hearing examiner so appointed shall be in the unclassified 234.7 service of the state. 234.8 Sec. 47. Minnesota Statutes 1996, section 124.2131, 234.9 subdivision 11, is amended to read: 234.10 Subd. 11. [AIDS PENDING APPEALS.] During the pendency of 234.11 any appeal from the commissioner of revenue evaluation, state 234.12 aids to the appealing districtso appealing shallmust be paid 234.13 on the basis of the evaluation subject to adjustment upon final 234.14 determination of the appeal. 234.15 Sec. 48. Minnesota Statutes 1996, section 124.214, is 234.16 amended to read: 234.17 124.214 [AID ADJUSTMENTS.] 234.18 Subdivision 1. [OMISSIONS.] No adjustments to any aid 234.19 payments made pursuant to this chapter or chapter 124A, 234.20 resulting from omissions inschooldistrict reports, except 234.21 those adjustments determined by the legislative auditor, shall 234.22 be made for any school year after December 30 of the next school 234.23 year, unless otherwise specifically provided by law. 234.24 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 234.25 sections 270.07, 375.192, or otherwise, the net tax capacity of 234.26 anyschooldistrict for any taxable year is changed after the 234.27 taxes for that year have been spread by the county auditor and 234.28 the local tax rate as determined by the county auditor based 234.29 upon the original net tax capacity is applied upon the changed 234.30 net tax capacities, the county auditor shall, prior to February 234.31 1 of each year, certify to the commissioner of children, 234.32 families, and learning the amount of any resulting net revenue 234.33 loss that accrued to theschooldistrict during the preceding 234.34 year. Each year, the commissioner shall pay an abatement 234.35 adjustment to the district in an amount calculated according to 234.36 the provisions of this subdivision. This amount shall be 235.1 deducted from the amount of the levy authorized by section 235.2 124.912, subdivision 9. The amount of the abatement 235.3 adjustmentshallmust be the product of: 235.4 (1) the net revenue loss as certified by the county 235.5 auditor, times 235.6 (2) the ratio of: 235.7(a)(i) the sum of the amounts of the district's certified 235.8 levy in the preceding year according to the following: 235.9(i)(A) section 124A.23 if the district received general 235.10 education aid according to that section for the second preceding 235.11 year; 235.12(ii)(B) section 124.226, subdivisions 1 and 4, if the 235.13 district received transportation aid according to section 235.14 124.225 for the second preceding year; 235.15(iii)(C) section 124.243, if the district received capital 235.16 expenditure facilities aid according to that section for the 235.17 second preceding year; 235.18(iv)(D) section 124.244, if the district received capital 235.19 expenditure equipment aid according to that section for the 235.20 second preceding year; 235.21(v)(E) section 124.83, if the district received health and 235.22 safety aid according to that section for the second preceding 235.23 year; 235.24(vi)(F) sections 124.2713, 124.2714, and 124.2715, if the 235.25 district received aid for community education programs according 235.26 to any of those sections for the second preceding year; 235.27(vii)(G) section 124.2711, subdivision 2a, if the district 235.28 received early childhood family education aid according to 235.29 section 124.2711 for the second preceding year; 235.30(viii)(H) section 124.321, subdivision 3, if the district 235.31 received special education levy equalization aid according to 235.32 that section for the second preceding year; 235.33(ix)(I) section 124A.03, subdivision 1g, if the district 235.34 received referendum equalization aid according to that section 235.35 for the second preceding year; and 235.36(x)(J) section 124A.22, subdivision 4a, if the district 236.1 received training and experience aid according to that section 236.2 for the second preceding year; to 236.3(b) to(ii) the total amount of the district's certified 236.4 levy in the preceding October, plus or minus auditor's 236.5 adjustments. 236.6 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 236.7 tax increment is made to aschooldistrict pursuant to section 236.8 469.176, subdivision 2, or upon decertification of a tax 236.9 increment district, the school district's aid and levy 236.10 limitations must be adjusted for the fiscal year in which the 236.11 excess tax increment is paid under the provisions of this 236.12 subdivision. 236.13(a)(b) An amount must be subtracted from theschool236.14 district's aid for the current fiscal year equal to the product 236.15 of: 236.16 (1) the amount of the payment of excess tax increment to 236.17 theschooldistrict, times 236.18 (2) the ratio of: 236.19(A)(i) the sum of the amounts of theschooldistrict's 236.20 certified levy for the fiscal year in which the excess tax 236.21 increment is paid according to the following: 236.22(i)(A) section 124A.23, if the district received general 236.23 education aid according to that section for the second preceding 236.24 year; 236.25(ii)(B) section 124.226, subdivisions 1 and 4, if the 236.26schooldistrict received transportation aid according to section 236.27 124.225 for the second preceding year; 236.28(iii)(C) section 124.243, if the district received capital 236.29 expenditure facilities aid according to that section for the 236.30 second preceding year; 236.31(iv)(D) section 124.244, if the district received capital 236.32 expenditure equipment aid according to that section for the 236.33 second preceding year; 236.34(v)(E) section 124.83, if the district received health and 236.35 safety aid according to that section for the second preceding 236.36 year; 237.1(vi)(F) sections 124.2713, 124.2714, and 124.2715, if the 237.2 district received aid for community education programs according 237.3 to any of those sections for the second preceding year; 237.4(vii)(G) section 124.2711, subdivision 2a, if the district 237.5 received early childhood family education aid according to 237.6 section 124.2711 for the second preceding year; 237.7(viii)(H) section 124.321, subdivision 3, if the district 237.8 received special education levy equalization aid according to 237.9 that section for the second preceding year; 237.10(ix)(I) section 124A.03, subdivision 1g, if the district 237.11 received referendum equalization aid according to that section 237.12 for the second preceding year; and 237.13(x)(J) section 124A.22, subdivision 4a, if the district 237.14 received training and experience aid according to that section 237.15 for the second preceding year; to 237.16(B) to(ii) the total amount of theschooldistrict's 237.17 certified levy for the fiscal year, plus or minus auditor's 237.18 adjustments. 237.19(b)(c) An amount must be subtracted from the school 237.20 district's levy limitation for the next levy certified equal to 237.21 the difference between: 237.22 (1) the amount of the distribution of excess increment,; 237.23 and 237.24 (2) the amount subtracted from aid pursuant to clause (a). 237.25 If the aid and levy reductions required by this subdivision 237.26 cannot be made to the aid for the fiscal year specified or to 237.27 the levy specified, the reductions must be made from aid for 237.28 subsequent fiscal years, and from subsequent levies. The school 237.29 districtshallmust use the payment of excess tax increment to 237.30 replace the aid and levy revenue reduced under this subdivision. 237.31 (d) This subdivision applies only to the total amount of 237.32 excess increments received by aschooldistrict for a calendar 237.33 year that exceeds $25,000. 237.34 Sec. 49. Minnesota Statutes 1996, section 124.625, is 237.35 amended to read: 237.36 124.625 [VETERANS TRAINING.] 238.1 The commissioner shall continue the veterans training 238.2 program. All receipts to the veterans training revolving fund 238.3 for the veterans training program are appropriated to the 238.4 commissioner to pay the necessary expenses of operation of the 238.5 program. The departmentof children, families, and learning238.6shallmust act as the state agency for approving educational 238.7 institutions for purposes of United States Code, title 38, 238.8 chapter 36, relating to educational benefits for veterans and 238.9 other persons. The state board may adopt rules to fulfill its 238.10 obligations as the state approving agency. All federal money 238.11 received for purposes of the veterans training programshall238.12 must be deposited in the veterans training revolving fund and is 238.13 appropriated to the department for those purposes. 238.14 Sec. 50. Minnesota Statutes 1996, section 124A.036, as 238.15 amended by Laws 1997, chapter 7, article 1, section 65, is 238.16 amended to read: 238.17 124A.036 [PAYMENTS TO RESIDENT AND NONRESIDENT DISTRICTS.] 238.18 Subdivision 1. [AID TO DISTRICT OF RESIDENCE.] General 238.19 education aidshallmust be paid to the district of residence 238.20 unless otherwise specifically provided by law. 238.21 Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all 238.22 school purposes, unless otherwise specifically provided by law, 238.23 a homeless pupil must be considered a resident of the school 238.24 district that enrolls the pupil. 238.25 Subd. 2. [DISTRICT WITHOUT SCHOOLS.] Except as otherwise 238.26 provided in law, any district not maintaining classified 238.27 elementary or secondary schoolsshallmust pay the tuition 238.28 required in order to enable resident pupils to attend school in 238.29 another district when necessary, andshallmust receive general 238.30 education aid on the same basis as other districts. The 238.31 aidshallmust be computed as if the pupils were enrolled in the 238.32 district of residence. 238.33 Subd. 3. [NOTIFICATION OF RESIDENT DISTRICT.] A district 238.34 educating a pupil who is a resident of another districtshall238.35 must notify the district of residence within 60 days of the date 238.36 the pupil is determined by the district to be a nonresident, but 239.1 not later than August 1 following the end of the school year in 239.2 which the pupil is educated. If the district of residence does 239.3 not receive a notification from the providing district pursuant 239.4 to this subdivision, itshallis notbeliable to that district 239.5 for any tuition billing received after August 1 of the next 239.6 school year. 239.7 Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state 239.8 agency or a court of the state desires to place a child in a 239.9schooldistrictwhichthat is not the child's district of 239.10 residence, that agency or courtshallmust,prior tobefore 239.11 placement, allow the district of residence an opportunity to 239.12 participate in the placement decision and notify the district of 239.13 residence, the district of attendance and the commissionerof239.14children, families, and learningof the placement decision. 239.15 When a state agency or court determines that an immediate 239.16 emergency placement is necessary and that time does not permit 239.17 district participation in the placement decision or notice to 239.18 the districts and the commissionerof children, families, and239.19learningof the placement decisionprior tobefore the 239.20 placement, the agency or court may make the decision and 239.21 placement without that participation or prior notice. The 239.22 agency or courtshallmust notify the district of residence, the 239.23 district of attendance and the commissionerof children,239.24families, and learningof an emergency placement within 15 days 239.25 of the placement. 239.26 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 239.27 education aid for districts must be adjusted for each pupil 239.28 attending a nonresident district under sections 120.062, 239.29 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 239.30 The adjustments must be made according to this subdivision. 239.31 (a) General education aid paid to a resident district must 239.32 be reduced by an amount equal to the general education revenue 239.33 exclusive of compensatory revenue attributable to the pupil in 239.34 the resident district. 239.35 (b) General education aid paid to a district serving a 239.36 pupil in programs listed in this subdivisionshallmust be 240.1 increased by an amount equal to the general education revenue 240.2 exclusive of compensatory revenue attributable to the pupil in 240.3 the nonresident district. 240.4 (c) If the amount of the reduction to be made from the 240.5 general education aid of the resident district is greater than 240.6 the amount of general education aid otherwise due the district, 240.7 the excess reduction must be made from other state aids due the 240.8 district. 240.9 (d) The district of residenceshallmust pay tuition to a 240.10 district or an area learning center, operated according to 240.11 paragraph (e), providing special instruction and services to a 240.12 pupil with a disability, as defined in section 120.03, or a 240.13 pupil, as defined in section 120.181, who is enrolled in a 240.14 program listed in this subdivision. The tuitionshallmust be 240.15 equal to (1) the actual cost of providing special instruction 240.16 and services to the pupil, including a proportionate amount for 240.17 debt service and for capital expenditure facilities and 240.18 equipment, and debt service but not including any amount for 240.19 transportation, minus (2) the amount of general education aid 240.20 and special education aid, attributable to that pupil, that is 240.21 received by the district providing special instruction and 240.22 services. 240.23 (e) An area learning center operated by a service 240.24 cooperative, intermediate district, education district, or a 240.25 joint powers cooperative may elect through the action of the 240.26 constituent boards to charge tuition for pupils rather than to 240.27 calculate general education aid adjustments under paragraph (a), 240.28 (b), or (c). The tuition must be equal to the greater of the 240.29 average general education revenue per pupil unit attributable to 240.30 the pupil, or the actual cost of providing the instruction, 240.31 excluding transportation costs, if the pupil meets the 240.32 requirements of section 120.03 or 120.181. 240.33 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 240.34 for districts must be adjusted for each pupil attending a 240.35 charter school under section 120.064. The adjustments must be 240.36 made according to this subdivision. 241.1 (b) General education aid paid to a resident district must 241.2 be reduced by an amount equal to the general education revenue 241.3 exclusive of compensatory revenue. 241.4 (c) General education aid paid to a district in which a 241.5 charter school not providing transportation according to section 241.6 120.064, subdivision 15, is locatedshallmust be increased by 241.7 an amount equal to the product of: (1) the sum of $170, plus 241.8 the transportation sparsity allowance for the district, plus the 241.9 transportation transition allowance for the district; times (2) 241.10 the pupil units attributable to the pupil. 241.11 (d) If the amount of the reduction to be made from the 241.12 general education aid of the resident district is greater than 241.13 the amount of general education aid otherwise due the district, 241.14 the excess reduction must be made from other state aids due the 241.15 district. 241.16 Sec. 51. [INSTRUCTION TO REVISOR.] 241.17 The revisor of statutes shall renumber each section of 241.18 Minnesota Statutes listed in column A with the number listed in 241.19 column B. The revisor shall also make necessary cross-reference 241.20 changes consistent with the renumbering. 241.21 Column A Column B 241.22 121.01 121A.01 241.23 121.81 121A.02 241.24 121.82 121A.03 241.25 121.02, subd. 1 121A.04, subd. 1 241.26 subd. 2a subd. 2 241.27 subd. 3 subd. 3 241.28 subd. 4 subd. 4 241.29 121.03 121A.05 241.30 121.04 121A.06 241.31 121.05 121A.07 241.32 121.06 121A.08 241.33 121.14 121A.09 241.34 121.11, subd. 7 121A.10, subd. 1 241.35 subd. 7b subd. 2 241.36 subd. 7d subd. 3 242.1 subd. 9 subd. 4 242.2 subd. 11 subd. 5 242.3 subd. 7c 121A.11 242.4 121.1113 121A.12 242.5 121.1115, subd. 1 121A.13, subd. 1 242.6 subd. 1a subd. 2 242.7 subd. 2 subd. 3 242.8 126.685 121A.15 242.9 121.48 121A.17 242.10 121.1601 121A.19 242.11 126.82 121A.20 242.12 121.16, subd. 1 121A.22, subd. 1 242.13 subd. 3 subd. 2 242.14 121.161 121A.23 242.15 121.162 121A.24 242.16 121.163 121A.25 242.17 121.175 121A.27 242.18 121.15, subd. 1 121A.31, subd. 1 242.19 subd. 1a subd. 2 242.20 subd. 1b subd. 3 242.21 subd. 2 subd. 4 242.22 subd. 3 subd. 5 242.23 subd. 4 subd. 6 242.24 subd. 5 subd. 7 242.25 subd. 6 subd. 8 242.26 subd. 7 subd. 9 242.27 subd. 7a subd. 10 242.28 subd. 8 subd. 11 242.29 subd. 9 subd. 12 242.30 121.1501 121A.32 242.31 121.1502 121A.33 242.32 121.931, subd. 1 121A.36, subd. 1 242.33 subd. 2 subd. 2 242.34 subd. 5 subd. 3 242.35 121.932, subd. 2 121A.37, subd. 1 242.36 subd. 3 subd. 2 243.1 subd. 4 subd. 3 243.2 subd. 4a subd. 4 243.3 subd. 4b subd. 5 243.4 subd. 5 subd. 6 243.5 subd. 6 subd. 7 243.6 121.933, subd. 1 121A.38 243.7 121.95 121A.39 243.8 121.498 121A.41 243.9 121.496, subd. 2 121A.43, subd. 1 243.10 subd. 3 subd. 2 243.11 121.11, subd. 5 121A.50 243.12 121.918 121A.51 243.13 121.919 121A.52 243.14 124.078 121A.54 243.15 124.079 121A.55 243.16 124.08 121A.56 243.17 124.09 121A.57 243.18 124.10 121A.58 243.19 124.12 121A.60 243.20 124.14, subd. 1 121A.61, subd. 1 243.21 subd. 2 subd. 2 243.22 subd. 3 subd. 3 243.23 subd. 3a subd. 4 243.24 subd. 4 subd. 5 243.25 subd. 6 subd. 6 243.26 subd. 7 subd. 7 243.27 subd. 8 subd. 8 243.28 124.15, subd. 1 121A.62, subd. 1 243.29 subd. 2 subd. 2 243.30 subd. 2a subd. 3 243.31 subd. 3 subd. 4 243.32 subd. 4 subd. 5 243.33 subd. 5 subd. 6 243.34 subd. 6 subd. 7 243.35 subd. 7 subd. 8 243.36 subd. 8 subd. 9 244.1 124.155 121A.63 244.2 124.18 121A.65 244.3 124.195, subd. 1 121A.67, subd. 1 244.4 subd. 2 subd. 2 244.5 subd. 3 subd. 3 244.6 subd. 3a subd. 4 244.7 subd. 3b subd. 5 244.8 subd. 3c subd. 6 244.9 subd. 4 subd. 7 244.10 subd. 5 subd. 8 244.11 subd. 6 subd. 9 244.12 subd. 7 subd. 10 244.13 subd. 8 subd. 11 244.14 subd. 9 subd. 12 244.15 subd. 10 subd. 13 244.16 subd. 11 subd. 14 244.17 subd. 14 subd. 15 244.18 subd. 15 subd. 16 244.19 124.196 121A.68 244.20 124A.036 121A.69 244.21 124.2131, subd. 1 121A.70, subd. 1 244.22 subd. 2 subd. 2 244.23 subd. 3 subd. 3 244.24 subd. 3a subd. 4 244.25 subd. 5 subd. 5 244.26 subd. 6 subd. 6 244.27 subd. 7 subd. 7 244.28 subd. 8 subd. 8 244.29 subd. 9 subd. 9 244.30 subd. 10 subd. 10 244.31 subd. 11 subd. 11 244.32 124.214 121A.72 244.33 124.2141 121A.73 244.34 126.256 121A.80 244.35 126.115 121A.82 244.36 124.625 121A.84 245.1 ARTICLE 5 245.2 CHAPTER 122A 245.3 SCHOOL DISTRICTS; FORMATION AND COOPERATION 245.4 Section 1. Minnesota Statutes 1996, section 121.155, is 245.5 amended to read: 245.6 121.155 [JOINT POWERS AGREEMENTS FOR FACILITIES.] 245.7 Subdivision 1. [INSTRUCTIONAL FACILITIES.] Any group of 245.8 districts may form a joint powers district under section 471.59 245.9 representing all participating districts to build or acquire a 245.10 facility to be used for instructional purposes. The joint 245.11 powers board must submit the project for review and comment 245.12 under section 121.15. The joint powers board must hold a 245.13 hearing on the proposal. The joint powers district must submit 245.14 the question of authorizing the borrowing of funds for the 245.15 project to the voters of the joint powers district at a special 245.16 election. The question submitted shall state the total amount 245.17 of funding needed from all sources. The joint powers board may 245.18 issue the bonds according to chapter 475 and certify the levy 245.19 required by section 475.61 only if a majority of those voting on 245.20 the question vote in the affirmative and only after the school 245.21 boards of each member district have adopted a resolution 245.22 pledging the full faith and credit of that district. The 245.23 resolution shall irrevocably commit that district to pay a 245.24 proportionate share, based on pupil units, of any debt levy 245.25 shortages that, together with other funds available, would allow 245.26 the joint powers board to pay the principal and interest on the 245.27 obligations. The district's payment of its proportionate share 245.28 of the shortfall shall be made from the district's capital 245.29 expenditure fund. The clerk of the joint powers board must 245.30 certify the vote of the bond election to the commissionerof245.31children, families, and learning. 245.32 Subd. 2. [SHARED FACILITIES.] A group of governmental 245.33 units may form a joint powers district under section 471.59 245.34 representing all participating units to build or acquire a 245.35 facility. The joint powers board must submit the project for 245.36 review and comment under section 121.15. The joint powers board 246.1 must hold a hearing on the proposal. The joint powers district 246.2 must submit the question of authorizing the borrowing of funds 246.3 for the project to the voters of the joint powers district at a 246.4 special election. The question submitted shall state the total 246.5 amount of funding needed from all sources. The joint powers 246.6 board may issue the bonds according to chapter 475 and certify 246.7 the levy required by section 475.61 only if a majority of those 246.8 voting on the question vote in the affirmative and only after 246.9 the boards of each member unit have adopted a resolution 246.10 pledging the full faith and credit of that unit. The resolution 246.11 must irrevocably commit that unit to pay an agreed upon share of 246.12 any debt levy shortages that, together with other funds 246.13 available, would allow the joint powers board to pay the 246.14 principal and interest on the obligations. The clerk of the 246.15 joint powers board must certify the vote of the bond election to 246.16 the commissionerof children, families, and learning. 246.17 Sec. 2. Minnesota Statutes 1996, section 122.01, is 246.18 amended to read: 246.19 122.01 [DEFINITIONS.] 246.20 Subdivision 1. [DEFINITIONS.] For purposes of this 246.21 chapter, the words defined in section 120.02, have the same 246.22 meaning. 246.23 Subd. 2. [TEACHER.] For purposes of this chapter, "teacher" 246.24 means a teacher as defined in section 125.12, subdivision 1. 246.25 Sec. 3. Minnesota Statutes 1996, section 122.02, is 246.26 amended to read: 246.27 122.02 [CLASSES, NUMBER.] 246.28SchoolDistricts shall be classified as common, 246.29 independent, or special districts, each of which is a public 246.30 corporation. Each district shall be known by its classification 246.31 andeach shall beassigned a number by the commissioner so that 246.32 its title will be .......... school district number ..... . 246.33 Sec. 4. Minnesota Statutes 1996, section 122.03, is 246.34 amended to read: 246.35 122.03 [ASSIGNMENT OF IDENTIFICATION NUMBERS.] 246.36 Subdivision 1. [ASSIGNMENT.] The commissionerof children,247.1families, and learningshall, by order, assign an identification 247.2 number to each district. The assignment shall be made so that 247.3 each classified district has an exclusive identification number 247.4which is exclusive to it in its classification. 247.5 Subd. 2. [NOTIFICATION.] Upon making the assignment of an 247.6 identification number, the commissionerof children, families,247.7and learningshallforthwithnotify the clerk of the district 247.8 and the county auditors of the counties in which any part of the 247.9 district lies of the identification number assigned. A 247.10 certified copy of the order may be recorded in the office of the 247.11 county recorder to show the new legal name of the district. 247.12 Subd. 3. [LEGAL IDENTIFICATION.]From and after the making247.13of the order,The legal identification of the district shall 247.14 becomeand be as assignedthe assigned identification number. 247.15 All records, correspondence, reports and references to the 247.16 districtshallmust thereafter refer to the district by its 247.17 proper title as assigned. 247.18 Subd. 4. [USE OF NUMBERS.] A numberonceassigned to a 247.19 district under section 122.02 or under any prior law,shallmust 247.20 not be used again to identify any district in the same 247.21 classification. As the need arises, and as required by law, as 247.22 new districts are formed, the commissionerof children,247.23families, and learningshall assign unused numbers as 247.24 identification. When numbered districts are dissolved, the 247.25 numbers assigned to them will not be reassigned to any other 247.26 district. 247.27 Sec. 5. Minnesota Statutes 1996, section 122.21, is 247.28 amended to read: 247.29 122.21 [DETACHMENT AND ANNEXATION OF LAND.] 247.30 Subdivision 1. [DETACHMENT AND ANNEXATION.] The owner of 247.31 land which adjoins any independent district, and whose land is 247.32 not in a special district may petition the county board of the 247.33 county in which the greater part of the area proposed for 247.34 detachment and annexation lies to detach all or any part of the 247.35 land together with the intervening lands as defined 247.36 insubparagraphparagraph (b)below, from the district it now is 248.1 in, and to attach it, together with such intervening land, to 248.2 the adjoining district. For purpose of this section, land is 248.3 adjoining aschooldistrict if: 248.4 (a) The boundary of the area proposed for detachment and 248.5 annexation is the same as the district boundary to which 248.6 attachment is sought at any point, including corners, or 248.7 (b) The area proposed for detachment and annexation is 248.8 separated at any point from the district to which annexation is 248.9 sought by not more than one-half mile and the intervening land 248.10 is vacant and unoccupied or is owned by one or more of the 248.11 following: The United States, or the state of Minnesota or any 248.12 of its political subdivisions, or an owner who is unknown or 248.13 cannot be found or 248.14 (c) The area proposed by a land owner for detachment and 248.15 annexation is adjoining,(as defined insubparagraphs248.16 paragraphs (a) and (b)above), any land proposed for detachment 248.17 from and annexation to the same district in another pending 248.18 petition. 248.19 Subd. 2. [PETITION.] The petitionshallmust contain: 248.20 (a) A correct description of the area proposed for 248.21 detachment and annexation,together with suchincluding 248.22 supporting datawith regard toregarding location and title to 248.23 landas will establish facts conformable to subdivision 1to 248.24 establish that the land is adjoining a district. 248.25 (b) The reasons for the proposed change with facts showing 248.26 that the granting of the petition will not reduce the size of 248.27 any district to less than four sections, unless the district is 248.28 not operating a school within the district. 248.29 (c) Consent to the petition,endorsed thereon at any time248.30before the hearing by the board of the district from which the248.31area is to be removed,if, at the time of the filing of the 248.32 petition, any part of the area proposed for detachment is part 248.33 of a district which maintains and operates a secondary school 248.34 within the district. Before the hearing, the consent of the 248.35 board of the district in which the area proposed for detachment 248.36 lies must be endorsed on the petition. 249.1 (d) An identification of the district to which annexation 249.2 is sought. 249.3 (e)SuchOther informationasthe petitioners may desire to 249.4 affix. 249.5 (f) An acknowledgment by the petitioner. 249.6 Subd. 3. [FILING PETITION.] The petitionshallmust be 249.7 filed with the auditor who shall present it to the county board 249.8 at its next meeting. At the meeting, the county boardshall249.9 must fix a time and place for hearing the petition, which time. 249.10 The hearing shall be not more than 60 nor less than ten days 249.11 from the date of the meeting. The auditor shallforthwithserve 249.12 notice of the hearing on each district directly affected by the 249.13 petition, by mail addressed to the clerk. If any area affected 249.14 by the petition is in another county, the auditor shall mail a 249.15 notice of hearing to the auditor of such county and shall also 249.16 give one week's published notice of the hearing in the county 249.17whereinin which the hearing is to be held, and ten days' posted 249.18 notice in each school district affected. Such posted and 249.19 published notice may combine pending petitions. At the hearing 249.20 on the petition, the county boardshallmust receive and hear 249.21 any evidence for or against the petition. The hearing may be 249.22 adjourned from time to time. 249.23 Subd. 4. [ORDER.] Within six months of thetime when the249.24petition was filedfiling of the petition, the county board 249.25shallmust issue its order either granting or denying the 249.26 petition, unless all or part. If any of the land area described 249.27 in the petition is included in a plat for consolidation or 249.28 combination which has been approved by the commissionerof249.29children, families, and learning in which event, then no order 249.30 may be issued while consolidation or combination proceedings are 249.31 pending. No order shall be issued which results in attaching to 249.32 a district any territory not adjoining that district, as defined 249.33 in subdivision 1(a). No order shall be issued which reduces the 249.34 size of any district to less than four sections unless the 249.35 district is not operating a school within the district. The 249.36 order maybe made effective athave a deferred effective date 250.1 not later than July 1nextimmediately following its issuance. 250.2 If the petitionbeis granted, the auditor shall transmit a 250.3 certified copy to the commissioner. Failure to issue an order 250.4 within six months of the filing of the petition or termination 250.5 of proceedings upon an approved consolidation plat, whichever is 250.6 later, is a denial of the petition. 250.7 Subd. 5. [MODIFICATION OF RECORDS.] Upon receipt of the 250.8 order, the commissioner shallforthwithmodify the records and 250.9 any plats and petitions and proceedings involving districts 250.10 affected by such order presently before the commissioner for 250.11 action or record, to conform to the order. 250.12 Subd. 6. [TAXABLE PROPERTY.] Upon the effective date of 250.13 the order, the detachment and annexationordered thereinis 250.14 effected. All taxable property in the area so detached and 250.15 annexed remains taxable for payment of any school purpose 250.16 obligationstheretofore authorized by or on that date250.17outstandingalready authorized by or outstanding on the 250.18 effective date of the order against the district from which 250.19 detached.Such property is not by virtue of the order250.20relievedThe order does not relieve such property from the 250.21 obligation of any bonded debttheretoforealready incurred to 250.22 which it was subject prior to the order. All taxable property 250.23 in the area so detached and annexed is taxable for payment of 250.24 anyschooldistrict obligations authorized on or subsequent to 250.25 the effective date of the order by the district to which 250.26 annexation is made. 250.27 Sec. 6. Minnesota Statutes 1996, section 122.22, 250.28 subdivision 1, is amended to read: 250.29 Subdivision 1. [DISSOLUTION.] Any district may be 250.30 dissolved and the territorybeattached to other districts by 250.31 proceeding in accordance with this section. 250.32 Sec. 7. Minnesota Statutes 1996, section 122.22, 250.33 subdivision 4, is amended to read: 250.34 Subd. 4. [PETITION.] A petition executed pursuant to 250.35 subdivision 2(b) shall be filed with the auditor.It shallThe 250.36 petition must contain the following: 251.1 (a) A statement that petitioners desire proceedings 251.2 instituted leading to dissolution of the district and other 251.3 provisions made for the education of the inhabitants of the 251.4 territory and that petitioners are eligible voters of the 251.5 district; 251.6 (b) An identification of the district; and 251.7 (c) The reasons supporting the petition which may include 251.8 recommendations as to disposition of territory to be dissolved. 251.9 The recommendations are advisory in nature only and are not 251.10 binding on any petitioners or county board for any purpose. 251.11 The persons circulating the petition shall attach their 251.12 affidavit swearing or affirming that the persons executing the 251.13 petition are eligible voters, as defined in section 201.014, of 251.14 the district and that they signed in the presence of one of the 251.15 circulators. 251.16 The auditor shall present the petition to the county board 251.17 at its next meeting. At that meeting, the county boardshall251.18 must determine a date for a hearing. The hearing shall be not 251.19 less than 20 nor more than 60 days from the date of that meeting. 251.20 Sec. 8. Minnesota Statutes 1996, section 122.22, 251.21 subdivision 5, is amended to read: 251.22 Subd. 5. [CERTIFICATION.] Certification executed pursuant 251.23 to subdivision 2(c)shallmust be filed with the auditor.It251.24shallThe certification must contain the following: 251.25 (a) A copy of the resolution initiating the election; 251.26 (b) A copy of the notice of election with an affidavit of 251.27 publication or posting; 251.28 (c) The question voted on; 251.29 (d) The results of the election by number of votes cast for 251.30 and number against the question; and 251.31 (e) If an advisory ballot is taken on annexation, the 251.32 question voted on and number of ballots cast for and against the 251.33 proposal. 251.34 The auditor shall present the certification to the county 251.35 board at its next meeting. At that meeting, the county board 251.36shallmust determine a date for a hearing. The hearing shall be 252.1 not less than 20 nor more than 60 days from the date of that 252.2 meeting. 252.3 Sec. 9. Minnesota Statutes 1996, section 122.22, 252.4 subdivision 6, is amended to read: 252.5 Subd. 6. [HEARING.] When a hearing is ordered under this 252.6 section, the auditor shallhavegive ten days' posted notice of 252.7 the hearing in the district proposed for dissolution, one week's 252.8 published notice in the county, and ten days' mailed notice to 252.9 the clerk of the district proposed for dissolution and to the 252.10 clerk of each adjoining district and to the commissioner. 252.11 Ifall orany part of the district proposed for dissolution or 252.12 any adjoining district lies in another county, the auditor shall 252.13forthwith upon establishment of the hearing date,mail notice of 252.14 the hearing to the auditor of each county so situated upon 252.15 establishment of the hearing date. 252.16 Sec. 10. Minnesota Statutes 1996, section 122.22, 252.17 subdivision 7a, is amended to read: 252.18 Subd. 7a. [INFORMATION TO COUNTY AUDITOR.] (a) Before the 252.19 day of a hearing ordered pursuant to this section, each district 252.20 adjoining the district proposed for dissolutionshallmust 252.21 provide the following information and resolution to the county 252.22 auditor of the county containing the greatest land area of the 252.23 district proposed for dissolution: 252.24 (1) The outstanding bonded debt, outstanding energy loans 252.25 made according to section 216C.37 or sections 298.292 to 252.26 298.298, and the capital loan obligation of the district; 252.27 (2) The net tax capacity of the district; 252.28 (3) The most current school tax rates for the district, 252.29 including any referendum, discretionary, or other optional 252.30 levies being assessed currently and the expected duration of the 252.31 levies; 252.32 (4) A resolution passed by the school board of the district 252.33 stating that if taxable property of the dissolved district is 252.34 attached to it, one of the following requirements is imposed: 252.35 (i) the taxable property of the dissolving district which 252.36 is attached to its district shall not be liable for the bonded 253.1 debt, outstanding energy loans made according to section 216C.37 253.2 or sections 298.292 to 298.298, or the capital loan obligation 253.3 of the district which existed as of the time of the attachment; 253.4 (ii) the taxable property of the dissolving district which 253.5 is attached to its district shall be liable for the payment of 253.6 the bonded debt, outstanding energy loans made according to 253.7 section 216C.37 or sections 298.292 to 298.298, or the capital 253.8 loan obligation of the district which existed as of the time of 253.9 the attachment in the proportion which the net tax capacity of 253.10 that part of the dissolving district which is included in the 253.11 newly enlarged district bears to the net tax capacity of the 253.12 entire district as of the time of attachment; or 253.13 (iii) the taxable property of the dissolving district which 253.14 is attached to its district shall be liable for some specified 253.15 portion of the amount that could be requested pursuant to 253.16 subclause (ii). 253.17 (b) An apportionment pursuant to paragraph (a), clause (4), 253.18 subclause (ii) or (iii), shall be made by the county auditor of 253.19 the county containing the greatest land area of the district 253.20 proposed for transfer. 253.21 (c) An apportionment of bonded indebtedness, outstanding 253.22 energy loans made according to section 216C.37 or sections 253.23 298.292 to 298.298, or capital loan obligation pursuant to 253.24 paragraph (a), clause (4), subclause (ii) or (iii), shall not 253.25 relieve any property from any tax liability for payment of any 253.26 bonded or capital obligation, but taxable property in a district 253.27 enlarged pursuant to this section becomes primarily liable for 253.28 the payment of the bonded debt, outstanding energy loans made 253.29 according to section 216C.37 or sections 298.292 to 298.298, or 253.30 capital loan obligation to the extent of the proportion stated. 253.31 Sec. 11. Minnesota Statutes 1996, section 122.22, 253.32 subdivision 9, is amended to read: 253.33 Subd. 9. [ORDER FOR DISSOLUTION.] (a) An order issued 253.34 under subdivision 8, clause (b),shallmust contain the 253.35 following: 253.36 (1) A statement that the district is dissolved unless the 254.1 results of an election held pursuant to subdivision 11 provide 254.2 otherwise; 254.3 (2) A description by words or plat or both showing the 254.4 disposition of territory in the district to be dissolved; 254.5 (3) The outstanding bonded debt, outstanding energy loans 254.6 made according to section 216C.37 or sections 298.292 to 254.7 298.298, and the capital loan obligation of the district to be 254.8 dissolved; 254.9 (4) A statement requiring the fulfillment of the 254.10 requirements imposed by each adjoining district to which 254.11 territory in the dissolving district is to be attached regarding 254.12 the assumption of its outstanding preexisting bonded 254.13 indebtedness by any territory from the dissolving district which 254.14 is attached to it; 254.15 (5) An effective date for the order. The effective date 254.16 shall be July 1 of an odd-numbered year unless the school board 254.17 and the exclusive representative of the teachers in each 254.18 affected district agree to an effective date of July 1 of an 254.19 even-numbered year. The agreement must be in writing and 254.20 submitted to the commissionerof children, families, and254.21learning; and 254.22 (6) Other information the county board may desire to 254.23 include. 254.24 (b) The auditor shall within ten days from its issuance 254.25 serve a copy of the order by mail upon the clerk of the district 254.26 to be dissolved and upon the clerk of each district to which the 254.27 order attaches any territory of the district to be dissolved and 254.28 upon the auditor of each other county in whichall orany part 254.29 of the district to be dissolved or any district to which the 254.30 order attaches territory lies, and upon the commissioner. 254.31 Sec. 12. Minnesota Statutes 1996, section 122.22, 254.32 subdivision 13, is amended to read: 254.33 Subd. 13. [ELECTION DATE.] If an election is required 254.34 under subdivision 11, then before the expiration of a 45 day 254.35 period after the date of the order for dissolution and 254.36 attachment, the auditor shall set a date and call the election 255.1 by filing a written orderthereforfor the election and serving 255.2 a copythereofof the order personally or by mail on the clerk 255.3 of the district in which the election is to be held. The date 255.4 shall be not less than 15 nor more than 30 days after the date 255.5 of the order, upon which date a special election shall be held 255.6 in the district proposed for dissolution. The auditor 255.7 shallcausepost and publish notice of the electionto be posted255.8and publishedaccording to law. Upon receipt of the notice, the 255.9 board shall conduct the election. 255.10 Sec. 13. Minnesota Statutes 1996, section 122.22, 255.11 subdivision 14, is amended to read: 255.12 Subd. 14. [ELECTION RESULTS.] The board must certify the 255.13 results of the electionshall be certified by the boardto the 255.14 auditor. If a majority of all votes cast on the question at the 255.15 election approve the order, the order becomes final and 255.16 effective as of the date specified in the order. Each person 255.17 served with the order shall be so notified. If a majority of 255.18 all votes cast on the question disapprove the order, the 255.19 proceedings are dismissed, and the order becomes void. 255.20 Sec. 14. Minnesota Statutes 1996, section 122.22, 255.21 subdivision 18, is amended to read: 255.22 Subd. 18. [BONDED DEBT.] The bonded debt of a district 255.23 dissolved under provisions of this sectionshallmust be paid 255.24 according to levies madethereforfor that debt under provision 255.25 of chapter 475. The obligation of the taxable property in the 255.26 dissolved district with reference to the payment of such bonded 255.27 debt is not affected by this section. 255.28 Sec. 15. Minnesota Statutes 1996, section 122.22, 255.29 subdivision 20, is amended to read: 255.30 Subd. 20. [CURRENT ASSETS AND LIABILITIES.] If the 255.31 dissolved district is not divided by the order of dissolution 255.32 and attachment, all of its current assets and liabilities, real 255.33 and personal, and all its legally valid and enforceable claims 255.34 and contract obligationsshallmust pass to the district to 255.35 which it is attached, except as provided in section 122.532. If 255.36 the district to be dissolved is divided by the order of 256.1 dissolution and attachment, the commissioner shall, within 30 256.2 days after the order is issued, issue an order for the 256.3 distribution of its current assets and liabilities, real and 256.4 personal. If the commissioner's order provides for the transfer 256.5 of an interest in real estate to a district, this order may also 256.6 impose a dollar amount as a claim against that district in favor 256.7 of other districts, and this claim shall be paid and enforced in 256.8 the manner provided by law for the payment of judgments against 256.9 a district. The obligations of districts to the teachers 256.10 employed by the dissolved district shall be governed by the 256.11 provisions of section 122.532. 256.12 Sec. 16. Minnesota Statutes 1996, section 122.22, 256.13 subdivision 21, is amended to read: 256.14 Subd. 21. [LEVIES.] (a) In the year prior to the effective 256.15 date of the dissolution of a district, theschoolboard of a 256.16 district to which all of the dissolving district is to be 256.17 attached may adopt a resolution directing theschoolboard of 256.18 the dissolving district to certify levies for general education, 256.19 basic transportation, and capital expenditure equipment and 256.20 facilities in an amount not to exceed the maximum amount 256.21 authorized for the dissolving district for taxes payable in the 256.22 year the dissolution is effective. If the dissolving district 256.23 is to be attached to more than oneschooldistrict, the boards 256.24 of the districts to which the dissolving district is to be 256.25 attached may adopt a joint resolution that accomplishes the 256.26 purpose in this paragraph. 256.27 (b) Notwithstanding any other law to the contrary, upon 256.28 receipt of a resolution under paragraph (a), the board of the 256.29 dissolving district must certify levies in the amounts specified 256.30 in the resolution for taxes payable in the year the dissolution 256.31 is effective. 256.32 Sec. 17. Minnesota Statutes 1996, section 122.23, 256.33 subdivision 2, is amended to read: 256.34 Subd. 2. [RESOLUTION.] (a) Upon a resolution of aschool256.35 board in the area proposed for consolidation or upon receipt of 256.36 a petition therefor executed by 25 percent of the voters 257.1 resident in the area proposed for consolidation or by 50 such 257.2 voters, whichever islesserless, the county auditor of the 257.3 county which contains the greatest land area of the proposed new 257.4 district shallforthwith cause a plat to be preparedprepare a 257.5 plat. The resolution or petitionshallmust show the 257.6 approximate area proposed for consolidation. 257.7 (b) The resolution or petition may propose the following: 257.8 (1) that the bonded debt of the component districts will be 257.9 paid according to the levies previously made for that debt under 257.10 chapter 475, or that the taxable property in the newly created 257.11 district will be taxable for the payment of all or a portion of 257.12 the bonded debt previously incurred by any component district as 257.13 provided in subdivision 16; 257.14 (2) that obligations for a capital loan or an energy loan 257.15 made according to section 216C.37 or sections 298.292 to 298.298 257.16 outstanding in a preexisting district as of the effective date 257.17 of consolidation remain solely with the preexisting district 257.18 that obtained the loan, or that all or a portion of the loan 257.19 obligations will be assumed by the newly created or enlarged 257.20 district and paid by the newly created or enlarged district on 257.21 behalf of the preexisting district that obtained the loan; 257.22 (3) that referendum levies previously approved by voters of 257.23 the component districts pursuant to section 124A.03, subdivision 257.24 2, or its predecessor provision, be combined as provided in 257.25 section 122.531, subdivision 2a or 2b, or that the referendum 257.26 levies be discontinued; 257.27 (4) that the board of the newly created district consist of 257.28 the number of members determined by the component districts, 257.29 which may be six or seven members elected according to 257.30 subdivision 18, or any number of existing school board members 257.31 of the component districts, and a method to gradually reduce the 257.32 membership to six or seven; or 257.33 (5) that separate election districts from whichschool257.34 board members will be elected, the boundaries of these election 257.35 districts, and the initial term of the member elected from each 257.36 of these election districts be established. 258.1 The resolution must provide for election of board members 258.2 from one of the following options: single-member districts; 258.3 multimember districts; at large; or a combination of these 258.4 options. The resolution must include a plan for the orderly 258.5 transition to the option chosen. 258.6 A group of districts that operates a cooperative secondary 258.7 facility funded under section 124.494 may also propose a 258.8 temporaryschoolboard structure as specified in section 258.9 124.494, subdivision 7. 258.10 If a county auditor receives more than one request for a 258.11 plat and the requests involve parts of identical districts, the 258.12 auditor shallforthwithprepare a plat which in the auditor's 258.13 opinion best serves the educational interests of the inhabitants 258.14 of the districts or areas affected. 258.15 (c) The platshallmust show: 258.16 (1) Boundaries of the proposed district, as determined by 258.17 the county auditor, and present district boundaries, 258.18 (2) The location of school buildings in the area proposed 258.19 as a new district and the location of school buildings in 258.20 adjoining districts, 258.21 (3) The boundaries of any proposed separate election 258.22 districts, and 258.23 (4) Other pertinent information as determined by the county 258.24 auditor. 258.25 Sec. 18. Minnesota Statutes 1996, section 122.23, 258.26 subdivision 2b, is amended to read: 258.27 Subd. 2b. [ORDERLY REDUCTION PLAN.] As part of the 258.28 resolution required by subdivision 2, theschoolboard must 258.29 prepare a plan for the orderly reduction of the membership of 258.30 the board to six or seven members and a plan for the 258.31 establishment or dissolution of election districts. The plan 258.32 must be submitted to the secretary of state for review and 258.33 comment. 258.34 Sec. 19. Minnesota Statutes 1996, section 122.23, 258.35 subdivision 3, is amended to read: 258.36 Subd. 3. [SUPPORTING STATEMENT.] The county auditor shall 259.1 prepare a supporting statement to accompany the platshall be259.2prepared by the county auditor. The statementshallmust 259.3 contain: 259.4 (a) The adjusted net tax capacity of property in the 259.5 proposed district, 259.6 (b) If a part of any district is included in the proposed 259.7 new district, the adjusted net tax capacity of the property and 259.8 the approximate number of pupils residing in the part of the 259.9 district included shall be shown separately and the adjusted net 259.10 tax capacity of the property and the approximate number of 259.11 pupils residing in the part of the district not included shall 259.12 also be shown, 259.13 (c) The reasons for the proposed consolidation, including a 259.14 statement that at the time the plat is submitted to the state 259.15 board of education, no proceedings are pending to dissolve any 259.16 district involved in the plat unless all of the district to be 259.17 dissolved and all of each district to which attachment is 259.18 proposed is included in the plat, 259.19 (d) A statement showing that the jurisdictional fact 259.20 requirements of subdivision 1 are met by the proposal, 259.21 (e) Any proposal contained in the resolution or petition 259.22 regarding the disposition of the bonded debt, outstanding energy 259.23 loans made according to section 216C.37 or sections 298.292 to 259.24 298.298, capital loan obligations, or referendum levies of 259.25 component districts, 259.26 (f) Any other information the county auditor desires to 259.27 include, and 259.28 (g) The signature of the county auditor. 259.29 Sec. 20. Minnesota Statutes 1996, section 122.23, 259.30 subdivision 6, is amended to read: 259.31 Subd. 6. [COMMISSIONER.] The commissioner shall, upon 259.32 receipt of a plat,forthwithexamine it and approve, modify or 259.33 reject it. The commissioner shall also approve or reject any 259.34 proposal contained in the resolution or petition regarding the 259.35 disposition of the bonded debt of the component districts. If 259.36 the plat shows the boundaries of proposed separate election 260.1 districts and if the commissioner modifies the plat, the 260.2 commissioner shall also modify the boundaries of the proposed 260.3 separate election districts. The commissioner shall conduct a 260.4 hearing at the nearest county seat in the area upon reasonable 260.5 notice to the affected districts and county boards if requested 260.6 within 20 days after submission of the plat.Such a hearing may260.7be requested byThe board of any affected district, a county 260.8 board of commissioners, or the petition of 20 resident voters 260.9 living within the area proposed for consolidation may request 260.10 such a hearing. The commissioner shall endorse on the plat 260.11 action regarding any proposal for the disposition of the bonded 260.12 debt of component districts and the reasons for these actions 260.13and. Within 60 days of the date of the receipt of the plat, the 260.14 commissioner shall return it to the county auditor who submitted 260.15 it. The commissioner shall furnish a copy of that plat, and the 260.16 supporting statement and its endorsement to the auditor of each 260.17 county containing any land area of the proposed new district. 260.18 If land area of a particular county was included in the plat, as 260.19 submitted by the county auditor, and all of such land area is 260.20 excluded in the plat as modified and approved, the commissioner 260.21 shall also furnish a copy of the modified plat, supporting 260.22 statement, and any endorsement to the auditor of such county. 260.23 Sec. 21. Minnesota Statutes 1996, section 122.23, 260.24 subdivision 7, is amended to read: 260.25 Subd. 7. [NOTICE TO BOARD.] Upon receipt of an approved 260.26 plat, the county auditor shallforthwithnotify the board of any 260.27 district, all or part of whose land is included in the proposed 260.28 new district. 260.29 Sec. 22. Minnesota Statutes 1996, section 122.23, 260.30 subdivision 8, is amended to read: 260.31 Subd. 8. [BOARD ADOPTION.] The board of any independent 260.32 district maintaining a secondary school, the board of any common 260.33 district maintaining a secondary school, all or part of whose 260.34 land is included in the proposed new district,shallmust, 260.35 within 45 days of the approval of the plat by the commissioner, 260.36 either adopt or reject the plan as proposed in the approved 261.1 plat. If the board of any such district entitled to act on the 261.2 petition rejects the proposal, the proceedings are terminated 261.3 and dismissed. If any board fails to act on the plat within the 261.4 time allowed, the proceedings are terminated. 261.5 Sec. 23. Minnesota Statutes 1996, section 122.23, 261.6 subdivision 9, is amended to read: 261.7 Subd. 9. [MULTIPLE DISTRICTS; APPROVAL.] If the approved 261.8 plat contains land area in more than one independent district 261.9 maintaining a secondary school, or common district maintaining a 261.10 secondary school, and if each board entitled to act on the plat 261.11 approves the plat, each board shallcausepublish notice of its 261.12 actionto be publishedat least once in its official newspaper. 261.13 If all of theschoolboards entitled to act on the plat call, by 261.14 resolution, for an election on the question, or if five percent 261.15 of the eligible voters of any such district petition the clerk 261.16 of the district, within 30 days after the publication of the 261.17 notice, for an election on the question, the consolidation shall 261.18 not become effective until approved by a majority vote in the 261.19 district at an election held in the manner provided in 261.20 subdivisions 11, 12, and 13. 261.21 Sec. 24. Minnesota Statutes 1996, section 122.23, 261.22 subdivision 10, is amended to read: 261.23 Subd. 10. [APPROVAL BY RESIDENTS.] If an approved plat 261.24 contains land area in any district not entitled to act on 261.25 approval or rejection of the plat by action of its board, the 261.26 plat may be approved by the residents of the land area within 60 261.27 days of approval of plat by the commissioner in the following 261.28 manner: 261.29 A petition calling upon the county auditor to call and 261.30 conduct an election on the question of adoption or rejection of 261.31 the plat may be circulated in the land area by any person 261.32 residing in the area. Upon the filing of the petition with the 261.33 county auditor, executed by at least 25 percent of the eligible 261.34 voters in each district or part of a district contained in the 261.35 land area, the county auditor shallforthwithcall and conduct a 261.36 special election of the electors resident in the whole land area 262.1 on the question of adoption of the plat. For the purposes of 262.2 this section, the term "electors resident in the whole land area" 262.3 means any person residing on any remaining portion of land, a 262.4 part of which is included in the consolidation plat. Any 262.5 eligible voter owning land included in the plat who lives upon 262.6 land adjacent or contiguous to that part of the voter's land 262.7 included in the plat shall be included and counted in computing 262.8 the 25 percent of the eligible voters necessary to sign the 262.9 petition and shall also be qualified to sign the petition. 262.10 Failure to file the petition within 60 days of approval of the 262.11 plat by the commissioner terminates the proceedings. 262.12 Sec. 25. Minnesota Statutes 1996, section 122.23, 262.13 subdivision 11, is amended to read: 262.14 Subd. 11. [NOTICE OF ELECTION.] Upon an election becoming 262.15 callable under provisions of subdivision 9 or 10, theschool262.16 board shall give ten days' posted notice of election in the area 262.17 in which the election is to be held and also ifthere bea 262.18 newspaper is published in the area, one weeks' published notice 262.19 shall be given. The noticeshallmust specify the time, place 262.20 and purpose of the election. 262.21 Sec. 26. Minnesota Statutes 1996, section 122.23, 262.22 subdivision 12, is amended to read: 262.23 Subd. 12. [ELECTION.] Theschoolboard shall determine the 262.24 date of the election, the number of boundaries of voting 262.25 precincts, and the location of the polling places where voting 262.26 shall be conducted, and the hours the polls will be open. 262.27 Theschoolboard shall also provide official ballots whichshall262.28 must be used exclusively and shall be in the following form: 262.29 For consolidation .... 262.30 Against consolidation .... 262.31 Theschoolboardshallmust appoint election judges who 262.32 shall act as clerks of election. The ballots and resultsshall262.33 must be certified to theschoolboard who shall canvass and 262.34 tabulate the total vote cast for and against the proposal. 262.35 Sec. 27. Minnesota Statutes 1996, section 122.23, 262.36 subdivision 13, is amended to read: 263.1 Subd. 13. [EFFECTIVE DATE.] If a majority of the votes 263.2 cast on the question at the election approve the consolidation, 263.3 and if the necessary approving resolutions of boards entitled to 263.4 act on the plat have been adopted, theschoolboardshallmust, 263.5 within ten days of the election, notify the county auditor who 263.6 shall, within ten days of the notice or of the expiration of the 263.7 period during which an election can be called, issue an order 263.8 setting a date for the effective date of the change. The 263.9 effective dateshallmust be July 1 of the year determined by 263.10 theschoolboard in the original resolution adopted under 263.11 subdivision 2. The auditor shall mail or deliver a copy of such 263.12 order to each auditor holding a copy of the plat and to the 263.13 clerk of each district affected by the order and to the 263.14 commissioner. Theschoolboardshallmust similarly notify the 263.15 county auditor if the election fails. The proceedings are then 263.16 terminated and the county auditor shall so notify the 263.17 commissioner and the auditors and the clerk of eachschool263.18 district affected. 263.19 Sec. 28. Minnesota Statutes 1996, section 122.23, 263.20 subdivision 14, is amended to read: 263.21 Subd. 14. [IDENTIFICATION NUMBER.] Upon receipt of the 263.22 order creating a new district, the commissioner shallforthwith, 263.23 by order, assign an identification number to the new district 263.24 and shall mail a copy of the order to the county auditor and to 263.25 each auditor who holds a copy of the plat. If all of the 263.26 territory in one and only one independent district maintaining a 263.27 secondary school is included in the new independent district 263.28 created pursuant to consolidation, and if the commissioner finds 263.29 that it is more practical and reasonable and in the interest of 263.30 efficiency and economy of operation to so do, the commissioner 263.31 may assign to the new district the same number as previously 263.32 held by the included independent district. 263.33 Sec. 29. Minnesota Statutes 1996, section 122.23, 263.34 subdivision 16, is amended to read: 263.35 Subd. 16. [BONDED DEBT.] As of the effective date of the 263.36 consolidation, the bonded debt of all component districtsshall264.1 must be paid according to the plan for consolidation proposed in 264.2 the approved plat and according to this subdivision. 264.3 (a) If the plan for consolidation so provides, the bonded 264.4 debt of all component districtsshallmust be paid according to 264.5 levies previously made for that debt under chapter 475. In this 264.6 case, the obligation of the taxable property in the component 264.7 districts with reference to the payment of such bonded debt is 264.8 not affected by the consolidation. 264.9 (b) If the plan for consolidation makes no provision for 264.10 the disposition of bonded debt, all the taxable property in the 264.11 newly created district is taxable for the payment of any bonded 264.12 debt incurred by any component district in the proportion which 264.13 the net tax capacity of that part of a preexisting district 264.14 which is included in the newly created district bears to the net 264.15 tax capacity of the entire preexisting district as of the time 264.16 of the consolidation. 264.17 (c) If the plan for consolidation so provides, all the 264.18 taxable property in the newly created district will be taxable 264.19 for a portion of the bonded debt incurred by any component 264.20 district prior to the consolidation. 264.21 The county auditor shall make the apportionment required 264.22 under paragraphs (b) and (c)shall be made by the county auditor264.23and shall be incorporatedand incorporate the apportionment as 264.24 an annex to the order of the commissioner dividing the assets 264.25 and liabilities of the component parts. This subdivision shall 264.26 not relieve any property from any tax liability for payment of 264.27 any bonded obligation but taxable property in the newly created 264.28 district becomes primarily liable for the payment of bonded 264.29 debts to the extent of the proportion stated. 264.30 Sec. 30. Minnesota Statutes 1996, section 122.23, 264.31 subdivision 16c, is amended to read: 264.32 Subd. 16c. [BONDS; ELECTION.] The board of the newly 264.33 created district, when constituted as provided in subdivision 264.34 17, may provide for an election of that district on the issuance 264.35 of bonds. It may issue and sell bonds authorized at the 264.36 election, or bonds authorized at an election previously held in 265.1 any preexisting district wholly included within the newly 265.2 created district, or bonds for a purpose for which an election 265.3 is not required by law. The actions may be taken at any time 265.4 after the date of the county auditor's order issued under 265.5 subdivision 13, and before or after the date upon which the 265.6 consolidation becomes effective for other purposes, and taxes 265.7 for the payment of the bonds shall be levied upon all taxable 265.8 property in the newly created district. No bonds shall be 265.9 delivered to purchasers until 30 days after the date of the 265.10 county auditor's order. If within this period a notice of 265.11 appeal from the county auditor's order to the district court is 265.12 filed in accordance with section 127.25, no bonds shall be 265.13 delivered by the newly created district to purchasers unless: 265.14 (1) the county auditor's order is affirmed by final order 265.15 of the district court in the special proceeding, and a period of 265.16 30 days from the service of the final order expires without an 265.17 appeal being commenced; or,265.18 (2) if an appeal is taken, the order is affirmed and the 265.19 time for petitioning for further review has expired; except265.20that. Notwithstanding the pendency of the appeal, if all of the 265.21 territory of one and only one independent district maintaining a 265.22 secondary school is included in the newly created district, and 265.23 if the net tax capacity of taxable property in the territory 265.24 comprises 90 percent or more of the net tax capacity of all 265.25 taxable property in the newly created district, then the board 265.26 may issue, sell, and deliver any bonds voted by the preexisting 265.27 independent district and any bonds voted or otherwise authorized 265.28 by the newly created district,notwithstanding the pendency of265.29the appeal,and the bondsshallmust be paid by the levy of 265.30 taxes upon the property within the territory of the preexisting 265.31 independent district and within the other areas, if any, that 265.32 are finally determined to be properly included within the newly 265.33 created district. In any election held in the newly created 265.34 district as authorized in the preceding sentence, all qualified 265.35 electors residing within the area of that district as defined in 265.36 the county auditor's order shall be entitled to vote, but the 266.1 votes cast by residents of former districts or portions of 266.2 former districts included in the area, other than the 266.3 independent district maintaining the secondary school, shall be 266.4 received and counted separately. The bondsshallmust not be 266.5 issued and sold unless authorized by a majority of the votes 266.6 cast thereon by electors of the independent district maintaining 266.7 the secondary school, and also by a majority of the votes cast 266.8 thereon by electors residing within the entire area of the newly 266.9 created district. 266.10 Sec. 31. Minnesota Statutes 1996, section 122.23, 266.11 subdivision 18, is amended to read: 266.12 Subd. 18. [BOARD ELECTION; DUTIES.] (a) The county auditor 266.13 shall determine a date, not less than 30 nor more than 60 days 266.14 from the date that the order setting the effective date of the 266.15 consolidation according to subdivision 13 was issued,upon which266.16date shall be heldto hold a special election in the district 266.17 for the purpose of electing a board of six members for terms of 266.18 four years and until a successor is elected and qualifies 266.19 according to provisions of law governing the election of board 266.20 members in independent districts. Notwithstanding the 266.21 foregoing, three members of the first board must be elected to 266.22 terms that expire on the first Monday in January following the 266.23 first regularly scheduled school district general election that 266.24 occurs more than six months after the election of the first 266.25 board and three members must be elected to terms that expire on 266.26 the first Monday in January following the second school district 266.27 general election that occurs more than six months after the 266.28 election of the first board. If the first board consists of 266.29 seven members, then four members may be elected at either the 266.30 first or second regularly scheduled school district general 266.31 election following the election of the first board. If the 266.32 resolution or petition for consolidation pursuant to subdivision 266.33 2 proposed the establishment of separate election districts, 266.34 these members shall be elected from separate election districts 266.35 according to the provisions of that resolution or petition and 266.36 of chapter 205A. 267.1 (b) The county auditor shall give ten days' posted notice 267.2 of election in the area in which the election is to be held and 267.3 also ifthere bea newspaper is published in the proposed new 267.4 district, one weeks' published notice shall be given. The 267.5 noticeshallmust specify the time, place, and purpose of the 267.6 election. 267.7 (c) Any person desiring to be a candidate for a school 267.8 election shall file an application with the county auditor to 267.9 have the applicant's name placed on the ballot for such office, 267.10 specifying the term for which the application is made. The 267.11 applicationshallmust be filed not less than 21 days before the 267.12 election. 267.13 (d) The county auditor shall prepare, at the expense of the 267.14 county, necessary ballots for the election of officers, placing 267.15 thereon the names of the proposed candidates for each office. 267.16 The ballotsshallmust be marked and signed as official ballots 267.17 and shall be used exclusively at the election. The county 267.18 auditor shall determine the number of voting precincts and the 267.19 boundaries of each. The county auditor shall determine the 267.20 location of polling places and the hours the polls shall be open 267.21 and shall appoint three election judges for each polling place 267.22 who shall act as clerks of election. Election judges shall 267.23 certify ballots and results to the county auditor for tabulation 267.24 and canvass. 267.25 (e) After making a canvass and tabulation, the county 267.26 auditor shall issue a certificate of election to the candidate 267.27 for each office who received the largest number of votes cast 267.28 for the office. The county auditor shall deliver such 267.29 certificate to the person entitledtheretoto a certificate by 267.30 certified mail, and each person so certified shall file an 267.31 acceptance and oath of office with the county auditor within 30 267.32 days of the date of mailing of the certificate. A person who 267.33 fails to qualify prior to the time specified shall be deemed to 267.34 have refused to serve, but such filing may be made at any time 267.35 before action to fill vacancy has been taken. 267.36 (f) The board of each district included in the new enlarged 268.1 district shall continue to maintainschoolthe schools therein 268.2 until the effective date of the consolidation. Such boards 268.3 shall have power and authority only to make such contracts, to 268.4 do such things as are necessary tomaintainproperly maintain 268.5 the schools for the period prior to that date, and to certify to 268.6 the county auditor according to levy limitations applicable to 268.7 the component districts the taxes collectible in the calendar 268.8 year when the consolidation becomes effective. 268.9 (g)It shall be the immediate duty ofThe newly elected 268.10 board of thenewenlarged district has the immediate duty,when268.11 after the membersthereofhave qualified and the board has been 268.12 organized, to plan for the maintenance of the school or schools 268.13 of the new district for the next school year, to enter into the 268.14 necessary negotiations and contracts for the employment of 268.15 personnel, purchase of equipment and supplies, and other 268.16 acquisition and betterment purposes, when authorized by the 268.17 voters to issue bonds under the provisions of chapter 475; and. 268.18 On the effective date of the consolidationto, the newly elected 268.19 board must assume the full duties of the care, management and 268.20 control of the new enlarged district. The board of the new 268.21 enlarged districtshallmust give due consideration to the 268.22 feasibility of maintaining such existing attendance centers and 268.23 of establishing such other attendance centers, especially in 268.24 rural areas, as will afford equitable and efficient school 268.25 administration and assure the convenience and welfare of the 268.26 pupils residing in the enlarged district. The obligations of 268.27 the new board to teachers employed by component districts shall 268.28 be governed by the provisions of section 122.532. The 268.29 obligations of the new board to nonlicensed employees employed 268.30 by component districts is governed by subdivision 18a. 268.31 Sec. 32. Minnesota Statutes 1996, section 122.23, 268.32 subdivision 18a, is amended to read: 268.33 Subd. 18a. [NONLICENSED EMPLOYEES.] (a) As of the 268.34 effective date of a consolidation of two or more districts or 268.35 parts of them, each nonlicensed employee employed by an affected 268.36 district must be assigned to the newly created district. 269.1 (b) As of the effective date of a consolidation, any 269.2 employee organization may petition the commissioner of the 269.3 bureau of mediation services for a certification election under 269.4 chapter 179A. An organization certified as the exclusive 269.5 representative for nonlicensed employees in a particular 269.6 preexisting district continues as the exclusive representative 269.7 for those particular employees for a period of 90 days from the 269.8 effective date of a consolidation. If a petition for 269.9 representation of nonlicensed employees is filed within 90 days, 269.10 an exclusive representative for those particular nonlicensed 269.11 employees continues as the exclusive representative until the 269.12 bureau of mediation services certification proceedings are 269.13 concluded. 269.14 (c) The terms and conditions of employment of nonlicensed 269.15 employees assigned to the newly created district are temporarily 269.16 governed by contracts executed by an exclusive representative 269.17 for a period of 90 days from the effective date of the 269.18 consolidation. If a petition for representation is filed with 269.19 the bureau of mediation services within the 90 days, the 269.20 contractual terms and conditions of employment for those 269.21 nonlicensed employees who were governed by a preexisting 269.22 contract continue in effect until the bureau of mediation 269.23 services proceedings are concluded and, if an exclusive 269.24 representative has been elected, until successor contracts are 269.25 executed between the board of the newly created district and the 269.26 new exclusive representative. The terms and conditions of 269.27 employment of nonlicensed employees assigned to the newly 269.28 created district who were not governed by a collective 269.29 bargaining agreement at the time of the consolidation are 269.30 governed by the policies of the board of the newly created 269.31 district. 269.32 (d) The date of first employment in the newly created 269.33 district is the date on which services were first performed by 269.34 the employee in the preexisting district. Any sick leave, 269.35 vacation time, or severance pay benefits accumulated under 269.36 policies of the preexisting district or contracts between the 270.1 exclusive representatives and the board of the preexisting 270.2 district continue to apply in the newly created district to the 270.3 employees of the preexisting districts, subject to any maximum 270.4 accumulation limitations negotiated in a successor contract. 270.5 Future leaves of absence, vacations, or other benefits to be 270.6 accumulated in the newly created district are governed by board 270.7 policy or by contract between the exclusive representative of an 270.8 appropriate unit of employees and the board of the newly created 270.9 district. The board of the newly created districtshallmust 270.10 provide, to transferred nonlicensed employees, open enrollment 270.11 in all insurance plans with no limit on preexisting conditions. 270.12 Sec. 33. Minnesota Statutes 1996, section 122.23, 270.13 subdivision 20, is amended to read: 270.14 Subd. 20. [RETIREMENT INCENTIVES.] (a) For consolidations 270.15 effective July 1, 1994, and thereafter, aschoolboard of a 270.16 district may offer early retirement incentives to licensed and 270.17 nonlicensed staff. The early retirement incentives that the 270.18 board may offer are: 270.19 (1) the payment of employer pension plan contributions for 270.20 a specified period of allowable service credit for district 270.21 employees who have at least ten years of allowable service 270.22 credit in the applicable pension plan under paragraph (b); 270.23 (2) an extended leave of absence for an eligible employee 270.24 under section 125.60; 270.25 (3) severance payment incentives under paragraph (c); and 270.26 (4) the employer payment of the premiums for continued 270.27 health insurance coverage under paragraph (d). 270.28 These incentives may only be offered to employees who 270.29 terminate active employment with theschooldistrict or who 270.30 enter into an extended leave of absence as a result of the 270.31 consolidation, whichever applies. The board may determine the 270.32 staff to whom the incentives are offered. Unilateral 270.33 implementation of this section by aschoolboard is not an 270.34 unfair labor practice under chapter 179A. 270.35 (b) An employee with at least ten years of allowable 270.36 service credit in the applicable pension plan who is offered an 271.1 early retirement incentive under paragraph (a), clause (1), may 271.2 purchase up to five additional years of allowable service credit 271.3 from the applicable pension plan. To do so, the former employee 271.4 must pay the member contributions to the pension plan annually 271.5 in a manner and in accord with a schedule specified by the 271.6 executive director of the applicable fund. If the former 271.7 employee makes the member contribution, the boardshallmust 271.8 make the applicable employer contribution. The salary used to 271.9 determine these contributions is the salary of the person in the 271.10 last year that the former employee was employed by the 271.11 district. During the period of continuing member and employer 271.12 contributions, the person is not considered to be an active 271.13 member of the applicable pension plan, is not eligible for any 271.14 active member disability or survivorship benefit coverage, and 271.15 is not included in any postemployment termination benefit plan 271.16 changes unless the applicable benefit legislation provides 271.17 otherwise. Continued eligibility to purchase service credit 271.18 under this paragraph expires if the person is subsequently 271.19 employed during the service purchase period by a public employer 271.20 with retirement coverage under a pension plan specified in 271.21 section 356.30, subdivision 3. 271.22 (c) Severance payment incentives must conform with sections 271.23 465.72, 465.721, and 465.722. 271.24 (d) The board may offer a former employee continued 271.25 employer-paid health insurance coverage. Coverage may not 271.26 extend beyond age 65 or the end of the first month in which the 271.27 employee is eligible for employer-paid health insurance coverage 271.28 from a new employer. For purposes of this subdivision, 271.29 "employer-paid health insurance coverage" means medical, 271.30 hospitalization, or health insurance coverage provided through 271.31 an insurance company that is licensed to do business in the 271.32 state and for which the employing unit pays more than one-half 271.33 of the cost of the insurance premiums. 271.34 (e) Aschoolboard may offer these incentives beginning on 271.35 the day that the consolidation is approved under section 122.23, 271.36 subdivision 12 or, if an election is not called under section 272.1 122.23, subdivision 9 or 10, on the day that the plat is 272.2 approved by the commissioner. A board may offer these 272.3 incentives until the June 30 following the effective date of the 272.4 consolidation. 272.5 Sec. 34. Minnesota Statutes 1996, section 122.241, is 272.6 amended to read: 272.7 122.241 [COOPERATION AND COMBINATION.] 272.8 Subdivision 1. [SCOPE.] Sections 122.241 to 122.248 272.9 establish procedures forschoolboards that adopt, by 272.10 resolution, a five-year written agreement: 272.11 (1) to provide at least secondary instruction cooperatively 272.12 for at least one or two years, if the districts cooperate 272.13 according to subdivision 2; and 272.14 (2) to combine into one district. 272.15 Subd. 2. [COOPERATION REQUIREMENTS.] Cooperating districts 272.16shallmust: 272.17 (1) implement a written agreement according to section 272.18 122.541 no later than the first year of cooperation; 272.19 (2) all be members of one education district, if any one of 272.20 the districts is a member, no later than the end of the second 272.21 year of cooperation; and 272.22 (3) all be members of one SC, if any one of the districts 272.23 is a member. 272.24 Clause (1) does not apply to a district that implemented an 272.25 agreement for secondary education, according to section 122.535, 272.26 during any year before the 1991-1992 school year. If the 272.27 districts cooperate for one or more years, the agreement may be 272.28 continued during those years. 272.29 Subd. 3. [COMBINATION REQUIREMENTS.] Combining districts 272.30 must be contiguous and meet one of the following requirements at 272.31 the time of combination: 272.32 (1) at least two districts with at least 400 resident 272.33 pupils enrolled in grades 7 through 12 in the combined district 272.34 and projections, approved by the departmentof children,272.35families, and learning, of enrollment at least at that level for 272.36 five years; 273.1 (2) at least two districts if either: 273.2 (i) both of the districts qualify for secondary sparsity 273.3 revenue under section 124A.22, subdivision 6, and have an 273.4 average isolation index over 23; or 273.5 (ii) the combined district qualifies for secondary sparsity 273.6 revenue; 273.7 (3) at least three districts with fewer than 400 resident 273.8 pupils enrolled in grades 7 through 12 in the combined district; 273.9 or 273.10 (4) at least two districts with fewer than 400 resident 273.11 pupils enrolled in grades 7 through 12 in the combined district 273.12 if either district is located on the border of the state. 273.13 A combination under clause (2), (3), or (4) must be 273.14 approved by the commissionerof children, families, and273.15learning. The commissioner shall disapprove a combination under 273.16 clause (2), (3), or (4) if the combination is educationally 273.17 unsound or would not reasonably enable the districts to fulfill 273.18 statutory and rule requirements. 273.19 Sec. 35. Minnesota Statutes 1996, section 122.242, 273.20 subdivision 1, is amended to read: 273.21 Subdivision 1. [ADOPTION AND STATE BOARD REVIEW.] Each 273.22schoolboard must adopt, by resolution, a plan for cooperation 273.23 and combination. The plan must address each item in this 273.24 section. The plan must be specific for any item that will occur 273.25 within three years and may be general or set forth alternative 273.26 resolutions for an item that will occur in more than three 273.27 years. The plan must be submitted to the state board of 273.28 education and the secretary of state for review and comment. 273.29 Significant modifications and specific resolutions of items must 273.30 be submitted to the state board for review and comment. In the 273.31 official newspaper of each district proposed for combination, 273.32 theschoolboard must publish at least a summary of the adopted 273.33 plans, each significant modification and resolution of items, 273.34 and each state board review and comment. 273.35 Sec. 36. Minnesota Statutes 1996, section 122.242, 273.36 subdivision 3, is amended to read: 274.1 Subd. 3. [BOARD FORMATION.] The plan must state: 274.2 (1) whether the new district would have one electedschool274.3 board or whether it would have one electedschoolboard and one 274.4 elected board for each elementary school exercising powers and 274.5 duties delegated to it by theschoolboard of the entire 274.6 district; 274.7 (2) how many of the existing members of each district would 274.8 become members of theschoolboard of the combined district and, 274.9 if so, a method to gradually reduce the membership to six or 274.10 seven; and 274.11 (3) if desired, election districts that include the 274.12 establishment of separate areas from each of the combining 274.13 districts from whichschoolboard members will be elected, the 274.14 boundaries of these election districts, and the initial term of 274.15 the member elected from each of these election districts. 274.16 Sec. 37. Minnesota Statutes 1996, section 122.242, 274.17 subdivision 8, is amended to read: 274.18 Subd. 8. [REFERENDUM.] The plan must set forth: 274.19 (1) procedures for a referendum, held prior to the year of 274.20 the proposed combination, to approve combining theschool274.21 districts; and 274.22 (2) whether a majority of those voting in each district 274.23 proposed for combination or a majority of those voting on the 274.24 question in the entire area proposed for combination would be 274.25 needed to pass the referendum. 274.26 Sec. 38. Minnesota Statutes 1996, section 122.242, 274.27 subdivision 9, is amended to read: 274.28 Subd. 9. [FINANCES.] The plan must state: 274.29 (1) whether debt service for the bonds outstanding at the 274.30 time of combination remains solely with the district that issued 274.31 the bonds or whether all or a portion of the debt service for 274.32 the bonds will be assumed by the combined district and paid by 274.33 the combined district on behalf of the district that issued the 274.34 bonds; 274.35 (2) whether obligations for a capital loan or energy loan 274.36 made according to section 216C.37 or sections 298.292 to 298.298 275.1 outstanding at the time of combination remain solely with the 275.2 district that obtained the loan, or whether all or a portion of 275.3 all the loan obligations will be assumed by the combined 275.4 district and paid by the combined district on behalf of the 275.5 district that obtained the loan; 275.6 (3) the treatment of debt service levies, down payment 275.7 levies under section 124.82, and referendum levies; 275.8 (4) whether the cooperating or combined district will levy 275.9 for reorganization operating debt according to section 121.915, 275.10 clause (1); and 275.11 (5) two- and five-year projections, prepared by the 275.12 departmentof children, families, and learningupon the request 275.13 of any district, of revenues, expenditures, and property taxes 275.14 for each district if it cooperated and combined and if it did 275.15 not. 275.16 Sec. 39. Minnesota Statutes 1996, section 122.243, is 275.17 amended to read: 275.18 122.243 [STATE BOARD AND VOTER APPROVAL.] 275.19 Subdivision 1. [COMMISSIONER APPROVAL.] Before submitting 275.20 the question of combiningschooldistricts to the voters at a 275.21 referendum, the cooperating districtsshallmust submit the 275.22 proposed combination to the commissionerof children, families,275.23and learning. The commissioner shall determine the date for 275.24 submission and may require any information it determines 275.25 necessary. The commissioner shall disapprove the proposed 275.26 combination if it is educationally unsound, will not reasonably 275.27 enable the combined district to fulfill statutory and rule 275.28 requirements, or if the plan or modifications are incomplete. 275.29 If disapproved by the commissioner, the referendum shall be 275.30 postponed, but not canceled, by theschoolboards. 275.31 Subd. 2. [VOTER APPROVAL.] A referendum on the question of 275.32 combinationshallmust be conducted during the first or second 275.33 year of cooperation for districts that cooperate according to 275.34 section 122.241, or no more than 18 months before the effective 275.35 date of combination for districts that do not cooperate. The 275.36 referendumshallmust be on a date called by theschoolboards. 276.1 The referendumshallmust be conducted by theschoolboards 276.2 according to the Minnesota election law, as defined in section 276.3 200.01. If the referendum fails, the same question or a 276.4 modified question may be submitted. If the referendum fails 276.5 again, the districtsshallmust modify their cooperation and 276.6 combination plan. A third referendum may be conducted. If a 276.7 second or third referendum is conducted after October 1, the 276.8 newly combined district may not levy under section 124.2725 276.9 until the following year. Referendums shall be conducted on the 276.10 same date in all districts. 276.11 Sec. 40. Minnesota Statutes 1996, section 122.245, 276.12 subdivision 2, is amended to read: 276.13 Subd. 2. [NONLICENSED EMPLOYEES TERMINATION.] If 276.14 compatible plans are not negotiated according to section 276.15 122.242, subdivision 5, theschoolboards shall comply with this 276.16 subdivision with respect to nonlicensed employees. Nonlicensed 276.17 employees whose positions are discontinued as a result of 276.18 cooperation or combination, as applicable, shall be: 276.19 (1) employed by a cooperating board or the combined board, 276.20 if possible; 276.21 (2) assigned to work in a cooperating district or the 276.22 combined district, if possible; or 276.23 (3) terminated in the inverse order in which they were 276.24 employed in a district, according to a combined seniority list 276.25 of nonlicensed employees in the cooperating or combined 276.26 district, as applicable. 276.27 Sec. 41. Minnesota Statutes 1996, section 122.246, is 276.28 amended to read: 276.29 122.246 [COUNTY AUDITOR PLAT.] 276.30 Upon the request of two or more districts that have adopted 276.31 a resolution to cooperate and combine, the county auditor shall 276.32 prepare a plat. If the proposed combined district is located in 276.33 more than one county, the requestshallmust be submitted to the 276.34 county auditor of the county that has the greatest land area in 276.35 the proposed district. The platshallmust show: 276.36 (1) the boundaries of each of the present districts; 277.1 (2) the boundaries of the proposed district; 277.2 (3) the boundaries of proposed election districts, if 277.3 requested; and 277.4 (4) other information deemed pertinent by theschoolboards 277.5 or the county auditor. 277.6 Sec. 42. Minnesota Statutes 1996, section 122.247, 277.7 subdivision 2, is amended to read: 277.8 Subd. 2. [BONDED DEBT.] Debt service for bonds outstanding 277.9 at the time of the combination may be levied by the 277.10 combinedschoolboard consistent with the plan adopted according 277.11 to section 122.242, and any subsequent modifications, subject to 277.12 section 475.61. The primary obligation to pay the bonded 277.13 indebtedness that is outstanding on the effective date of 277.14 combination remains with the district that issued the bonds. 277.15 However, the combined district may make debt service payments on 277.16 behalf of a preexisting district. 277.17 Sec. 43. Minnesota Statutes 1996, section 122.247, 277.18 subdivision 2a, is amended to read: 277.19 Subd. 2a. [CAPITAL LOAN.] The combinedschoolboard may 277.20 levy for the obligations for a capital loan outstanding at the 277.21 time of combination, consistent with the plan adopted according 277.22 to section 122.242 and any subsequent modifications. The 277.23 primary obligation to levy as required by the capital loan 277.24 remains with taxable property in the preexisting district that 277.25 obtained the capital loan. However, the obligation of a capital 277.26 loan may be extended to all of the taxable property in the 277.27 combined district. 277.28 Sec. 44. Minnesota Statutes 1996, section 122.248, is 277.29 amended to read: 277.30 122.248 [REPORTS TO DEPARTMENT OF CHILDREN, FAMILIES, AND 277.31 LEARNING.] 277.32 Cooperating districts may submit joint reports and jointly 277.33 provide information required by the departmentof children,277.34families, and learning. The joint reports must allow 277.35 information to be attributed to each district. A combined 277.36 district must report and provide information as a single unit. 278.1 Sec. 45. Minnesota Statutes 1996, section 122.25, 278.2 subdivision 2, is amended to read: 278.3 Subd. 2. [BOARD ELECTION.] At the annual meeting, if a 278.4 majority of the votes cast on the question favors the conversion 278.5 to an independent district, a board of six members shall be 278.6 elected. Nominations may be made from the floor of the meeting 278.7 and election shall be by secret ballot. All board members 278.8 elected at this meeting shall serve for terms expiring on the 278.9 third Tuesday in the next Maynextfollowing the election on 278.10 which date a regular annual election shall be held in the manner 278.11 provided by law. At this first annual election for independent 278.12 districts, six directors shall be elected, two to hold office 278.13 until July 1 following the next annual election, two to hold 278.14 office until the expiration of one year from said July 1 and two 278.15 to hold office until the expiration of two years from said July 278.16 1; the time which each director shall hold office being 278.17 designated on the ballot. 278.18 Sec. 46. Minnesota Statutes 1996, section 122.25, 278.19 subdivision 3, is amended to read: 278.20 Subd. 3. [IDENTIFICATION NUMBER.] If the organization of 278.21 the district is changed from common to independent at the 278.22 meeting, the clerk shallforthwithnotify the auditor and the 278.23 commissioner. 278.24 Upon receipt of such notification, the commissioner shall 278.25forthwithassign a new identification number to the district and 278.26 shall notify the auditor and the clerk of the district thereof. 278.27 Sec. 47. Minnesota Statutes 1996, section 122.32, is 278.28 amended to read: 278.29 122.32 [REMAINING DISTRICTS, ACTION OF COUNTY BOARD; 278.30 ELECTION.] 278.31 Subdivision 1. [DISSOLUTION.]If there beAny organized 278.32schooldistrict not maintaining a classified school within the 278.33 district, except those districts which have a contract with a 278.34 state university or with the board of regents of the University 278.35 of Minnesota for the education of all the children of the 278.36 district,such districtshall hereby be dissolved as of the date 279.1 the district ceases to maintain a classified school. Any such 279.2 district not maintaining a classified schoolshall forthwith279.3 must be attached by order of the county board to such district 279.4 maintaining classified elementary or secondary schools upon 279.5 notice and hearing as provided in section 122.22 for the 279.6 attachment of dissolved districts. 279.7 Subd. 2. [SPECIAL ELECTION.] Prior to the order of the 279.8 county board, the board may direct the county auditor to call a 279.9 special election in the manner and form in which district 279.10 elections are held. The purpose of the election shall be to 279.11 determine to which district or districts the dissolved district 279.12 shall be attached. The county board after hearingshallmust 279.13 determine the form of question as it should appear on the 279.14 ballot. The results of the election shall be advisory in nature 279.15 only. 279.16 Subd. 3. [ORDER; ASSET AND LIABILITY TRANSFER.] The county 279.17 auditor shall certify the results of the electionshall be279.18certified by the county auditorto the county boardand. Within 279.19 45 days after such election, the county boardshallmust issue 279.20 its order dissolving the district. The ordershallmust also 279.21 attach the dissolved district to a proper district as determined 279.22 by the county board, and a copy of such ordershallmust be 279.23 filed with the commissionerof children, families, and279.24learning. Title to all the property, real and personal, of the 279.25 district dissolved passes to the district to which such 279.26 dissolved district is attached. If a district is divided by 279.27 virtue of the proceedings the county board shall issue its order 279.28 providing for the division of the current assets and liabilities 279.29 according to such terms as it may deem just and equitable. If 279.30 the order of the county board attaches any land area to a 279.31 district with bonded debt, the taxable property in such area 279.32 assumes its proportionate share of the authorized and 279.33 outstanding debt of the district to which it is attached. 279.34 Sec. 48. Minnesota Statutes 1996, section 122.34, is 279.35 amended to read: 279.36 122.34 [PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.] 280.1 Section 122.32 shall not apply to anyschooldistrict in 280.2 which is located any existing private school maintaining 280.3 elementary and secondary education for 75 percent of eligible 280.4 pupils within the district and complying with the requirements 280.5 of section 120.101. 280.6 Sec. 49. Minnesota Statutes 1996, section 122.355, is 280.7 amended to read: 280.8 122.355 [BORDER DISTRICTS; CONTINUED OPERATION.] 280.9 Subdivision 1. [BORDER DISTRICTS.] The common school 280.10 districts situated along the border of the state of Minnesota 280.11 and the state of Wisconsin which have, for the preceding 25 280.12 years, prior to May 26, 1965 been educating pupils of their 280.13 district inschooldistricts in Wisconsin may continue to 280.14 operate as common school districts notwithstanding that any of 280.15 suchschooldistricts do not maintain classified schools. 280.16 Suchschooldistricts are not subject to the terms and 280.17 provisions of sections 122.32 to 122.52. 280.18 Subd. 2. [CONTINUED OPERATION.] The provisions of 280.19 subdivision 1 shall remain in effect as long as theschool280.20 district does not discontinue the practice of education for 280.21 their district as described in subdivision 1. 280.22 Sec. 50. Minnesota Statutes 1996, section 122.41, is 280.23 amended to read: 280.24 122.41 [DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.] 280.25 Eachschooldistrictshallmust maintain classified 280.26 elementary and secondary schools, grades 1 through 12, unless 280.27 the district is exempt according to section 122.34 or 122.355, 280.28 has made an agreement with another district or districts as 280.29 provided in sections 122.535, 122.541, or sections 122.241 to 280.30 122.248, or 122.93, subdivision 8, or has received a grant under 280.31 sections 124.492 to 124.495. A district that has an agreement 280.32 according to sections 122.241 to 122.248 or 122.541shallmust 280.33 operate a school with the number of grades required by those 280.34 sections. A district that has an agreement according to section 280.35 122.535 or 122.93, subdivision 8, or has received a grant under 280.36 sections 124.492 to 124.495shallmust operate a school for the 281.1 grades not included in the agreement, but not fewer than three 281.2 grades. 281.3 Sec. 51. Minnesota Statutes 1996, section 122.43, is 281.4 amended to read: 281.5 122.43 [PHASE OUT OF DISSOLVED DISTRICT.] 281.6 Subd. 2. [MAINTAIN SCHOOLS.] The board of each district so 281.7 dissolved shall continue to maintainschoolschools until all 281.8 its territory has been attached to a proper district not later 281.9 than July 1. Such boards shall only make such contracts and do 281.10 such things as are necessary to properly maintain schools 281.11properlyfor the period they may be in session prior to the 281.12 attachment. 281.13 Sec. 52. Minnesota Statutes 1996, section 122.44, is 281.14 amended to read: 281.15 122.44 [PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.] 281.16 Subdivision 1. [ATTACHMENT.] Upon notice and hearing, as 281.17 provided in section 122.22 for the attachment of dissolved 281.18 districts, all territory of school districts dissolved by 281.19 sections 122.41 to 122.52 and all area of the state not in a 281.20 district maintaining classified elementary and secondary schools 281.21shallmust be attached by order of the county board to organized 281.22 districts maintaining classified elementary and secondary 281.23 schools, grades 1 through 12, unless a district has made an 281.24 agreement with another district or districts as provided in 281.25 section 122.535 or 122.541. 281.26 Sec. 53. Minnesota Statutes 1996, section 122.45, 281.27 subdivision 2, is amended to read: 281.28 Subd. 2. [TAXABLE PROPERTY.] As of the effective date of 281.29 the attachment, all the taxable property in the newly enlarged 281.30 district is taxable for the payment of any bonded debt 281.31theretoforealready incurred by any component district in the 281.32 proportion which the net tax capacity of that part of a 281.33 preexisting district which is included in the newly enlarged 281.34 district bears to the net tax capacity of the entire preexisting 281.35 district as of the time of the attachment. The county auditor 281.36 shall make this apportionmentshall be made by the county282.1auditor and shall be incorporatedand incorporate the 282.2 apportionment as an annex to the order of the commissioner 282.3 dividing the assets and liabilities of the component parts. 282.4 This subdivision shall not relieve any property from any tax 282.5 liability for payment of any bonded obligation but taxable 282.6 property in the newly enlarged district becomes primarily liable 282.7 for the payment of bonded debts to the extent of the proportion 282.8 stated. 282.9 Sec. 54. Minnesota Statutes 1996, section 122.45, 282.10 subdivision 3a, is amended to read: 282.11 Subd. 3a. [REIMBURSEMENT; SPECIAL LEVY.] (a) Liabilities 282.12 of a dissolved district existing at the time of the attachment 282.13 other than bonded debt within the purview of subdivision 2shall282.14 must be obligations of the consolidated district after 282.15 attachment (in the amount and kind determined by the 282.16 commissioner according to subdivision 1, where a dissolved 282.17 district is divided), for the payment of which the consolidated 282.18 district has a right to reimbursement by special levy or 282.19 levies. The amount of reimbursement will be equal to the 282.20 liabilities of the dissolved district for which the consolidated 282.21 district is obligated less the aggregate of the following which 282.22 has been or will be received by the consolidated district at or 282.23 after the time of attachment from or as a result of the 282.24 dissolution and attachment of the dissolved district: 282.25 (1) all taxes inuring to the consolidating district upon 282.26 levies made by the dissolved district; 282.27 (2) all cash, bank accounts, investments, and other current 282.28 assets; 282.29 (3) earned state aids of the dissolved districts; 282.30 (4) returns from the sale of property of the dissolved 282.31 district. 282.32 (b) The amount of such special levy so computed shall be 282.33 certified to the county auditor with the other tax requirements 282.34 of the consolidated district but separately stated and 282.35 identified. The auditor shall add the amount of special levy so 282.36 certified to the school rate for the territory in the 283.1 consolidated district which came from the dissolved district and 283.2 include it in the levy on the taxable property in that 283.3 territory; provided,. The county auditor shall not spread more 283.4 of the amount certified for special levy in any year than will 283.5 amount to 20 percent of the school levy without the special 283.6 levy, leaving the remaining part of the certified amount for 283.7 levy in successive years without further certification. Any 283.8 amount of reimbursement to which it is entitled omitted by the 283.9 consolidated district from its initial certification for special 283.10 levy may be certified in a subsequent year for levy in the same 283.11 manner as the levy upon initial certification. 283.12 The levy authorized by this subdivision shall be in 283.13 addition to those otherwise authorized for aschooldistrict. 283.14 Sec. 55. Minnesota Statutes 1996, section 122.46, is 283.15 amended to read: 283.16 122.46 [OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.] 283.17 Subdivision 1. [BOARD.] The board of the district 283.18 maintaining a secondary school to which district is attached 283.19 territory of districts discontinued by sections 122.41 to 122.52 283.20shallmust assume the duties and responsibilities of the board 283.21 of the district so enlarged for the balance of the term to which 283.22 the members were elected. At the next annual school election 283.23 the successors to the members whose terms then expire shall be 283.24 elected by the legally qualified voters of the newly enlarged 283.25 district. Thereafter board members shall be elected according 283.26 to the election procedure established for the election of board 283.27 members in independent districts. 283.28 Sec. 56. Minnesota Statutes 1996, section 122.47, is 283.29 amended to read: 283.30 122.47 [SPECIAL SCHOOL DISTRICTS, APPLICATION.] 283.31 When provisions of sections 122.41 to 122.52 are made to 283.32 apply to any special school district, such district shall hereby 283.33 be converted to an independent school district on the effective 283.34 date specified in the orders issued under provisions of sections 283.35 122.41 to 122.52. All applicable provisions of Minnesota 283.36 Statutes 1965, section 122.26, relating to such conversions 284.1 shall otherwise be in force. To the extent that any law or 284.2 charter provision of any special district is inconsistent with 284.3 the status of an independent school district or the powers 284.4 common to independent school districts, such law or charter 284.5 provision is hereby repealed. Provided, however, that nothing 284.6 in sections 122.41 to 122.52 shall in any way invalidate 284.7 remaining portions of such laws or home rule charters, or the 284.8 continuance of such special school districts to which no new 284.9 territory is attached under the provisions of sections 122.41 to 284.10 122.52. 284.11 Sec. 57. Minnesota Statutes 1996, section 122.48, is 284.12 amended to read: 284.13 122.48 [PRIVATE SCHOOLS.] 284.14 Sections 122.41 to 122.46 shall not apply to anyschool284.15 district in which is located any existing private school 284.16 maintaining elementary and secondary education for 75 percent of 284.17 the eligible pupils within the district and complying with the 284.18 requirements of section 120.101. 284.19 Sec. 58. Minnesota Statutes 1996, section 122.531, 284.20 subdivision 2c, is amended to read: 284.21 Subd. 2c. [DISCONTINUED REFERENDUM REVENUE.] If the plan 284.22 for consolidation provides for discontinuance of referendum 284.23 revenue previously approved by voters of the component districts 284.24 pursuant to section 124A.03, subdivision 2, or its predecessor 284.25 provision, the newly created districtshallmust not receive 284.26 referendum revenue unless the voters of the newly created 284.27 district authorize referendum revenue pursuant to section 284.28 124A.03, subdivision 2. 284.29 Sec. 59. Minnesota Statutes 1996, section 122.531, 284.30 subdivision 5a, is amended to read: 284.31 Subd. 5a. [SUPPLEMENTAL REVENUE.] (a) For purposes of 284.32 computing the supplemental revenue and the minimum allowance 284.33 under section 124A.22, subdivision 9, paragraph (b), in the case 284.34 of a consolidation, the newly created district's 1991-1992 284.35 revenue and 1991-1992 actual pupil units are the sum of the 284.36 1991-1992 revenue and 1991-1992 pupil units, respectively, of 285.1 the former districts comprising the new district. 285.2 (b) For purposes of computing the supplemental revenue and 285.3 the minimum allowance under section 124A.22, subdivision 9, 285.4 paragraph (b), in the case of a dissolution and attachment, a 285.5 district's 1991-1992 revenue is the revenue of the existing 285.6 district plus the result of the following calculation: 285.7 (1) the 1991-1992 revenue of the dissolved district divided 285.8 by 285.9 (2) the dissolved district's 1991-1992 actual pupil units, 285.10 multiplied by 285.11 (3) the pupil units of the dissolved district in the most 285.12 recent year before the dissolution allocated to the newly 285.13 created or enlarged district. 285.14 (c) In the case of a dissolution and attachment, the 285.15 departmentof children, families, and learningshall allocate 285.16 the pupil units of the dissolved district to the newly enlarged 285.17 district based on the allocation of the property on which the 285.18 pupils generating the pupil units reside. 285.19 Sec. 60. Minnesota Statutes 1996, section 122.531, 285.20 subdivision 9, is amended to read: 285.21 Subd. 9. [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 285.22 INCENTIVES.] Theschoolboard of a newly created or enlarged 285.23 district to which part or all of a dissolved district was 285.24 attached according to section 122.22 may levy for severance pay 285.25 or early retirement incentives for licensed and nonlicensed 285.26 employees who resign or retire early as a result of the 285.27 dissolution or consolidation, if the commissionerof children,285.28families, and learningapproves the incentives and the amount to 285.29 be levied. The amount may be levied over a period of up to five 285.30 years andshallmust be spread in whole or in part on the 285.31 property of a preexisting district or the newly created or 285.32 enlarged district, as determined by theschoolboard of the 285.33 newly created or enlarged district. 285.34 Sec. 61. Minnesota Statutes 1996, section 122.5311, 285.35 subdivision 1, is amended to read: 285.36 Subdivision 1. [CAPITAL LOAN OBLIGATIONS.] If a district 286.1 has a capital loan outstanding at the time of reorganization 286.2 according to section 122.22, 122.23, or sections 122.241 to 286.3 122.248, and if the plan for reorganization provides for payment 286.4 of all or a portion of the capital loan obligation by the newly 286.5 created or enlarged district or makes no provision for payment, 286.6 all of the taxable property in the newly created or enlarged 286.7 district is taxable for the payment to the extent stated in the 286.8 plan. Notwithstanding any contract to the contrary, if all of 286.9 the taxable property in the newly created or enlarged district 286.10 is taxable for the payment of the capital loan and until the 286.11 capital loan is retired or canceled, the maximum effort debt 286.12 service levyshallmust be recalculated annually by the 286.13 departmentof children, families, and learningto be equal to 286.14 the required debt service levy plus an additional amount. The 286.15 additional amountshallmust be the greater of: 286.16 (i) zero, or 286.17 (ii) the maximum effort debt service levy of the 286.18 preexisting district minus the required debt service levy of the 286.19 preexisting district that received the capital loan. 286.20 For the purpose of the recalculation, additional bond 286.21 issues after the date of the reorganization shall not impact the 286.22 maximum effort debt service levy or the required debt service 286.23 levy. 286.24 Notwithstanding any contract to the contrary, the plan for 286.25 reorganization may specify that the obligation for a capital 286.26 loan remains solely with the preexisting district that incurred 286.27 the obligation. This subdivision does not relieve any property 286.28 from any tax liability for payment of any capital loan 286.29 obligation. 286.30 Sec. 62. Minnesota Statutes 1996, section 122.532, 286.31 subdivision 2, is amended to read: 286.32 Subd. 2. [TEACHER ASSIGNMENT.] (a) As of the effective 286.33 date of a consolidation in which a district is divided or the 286.34 dissolution of a district and its attachment to two or more 286.35 existing districts, each teacher employed by an affected 286.36 district shall be assigned to the newly created or enlarged 287.1 district on the basis of a ratio of the pupils assigned to each 287.2 district according to the new district boundaries. The district 287.3 receiving the greatest number of pupils must be assigned the 287.4 teacher with the greatest seniority, and the remaining teachers 287.5 must be alternately assigned to each district until the district 287.6 receiving the fewest pupils has received its ratio of teachers 287.7 who will not be retiring before the effective date of the 287.8 consolidation or dissolution. 287.9 (b) Notwithstanding paragraph (a), theschoolboard and the 287.10 exclusive representative of teachers in eachschooldistrict 287.11 involved in the consolidation or dissolution and attachment may 287.12 negotiate a plan for assigning teachers to each newly created or 287.13 enlarged district. 287.14 Sec. 63. Minnesota Statutes 1996, section 122.532, 287.15 subdivision 3a, is amended to read: 287.16 Subd. 3a. [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 287.17 successor contract is executed between the newschoolboard and 287.18 the exclusive representative of the teachers of the new 287.19 district, theschoolboards of both districts and the exclusive 287.20 representatives of the teachers of both districts may agree: 287.21 (1) to comply with the contract of either district with 287.22 respect to all of the teachers assigned to the new district; or 287.23 (2) that each of the contracts shall apply to the teachers 287.24 previously subject to the respective contract. 287.25 (b) In the absence of an agreement according to paragraph 287.26 (a), the following shall apply: 287.27 (1) if the effective date is July 1 of an even-numbered 287.28 year, each of the contracts shall apply to the teachers 287.29 previously subject to the respective contract and shall be 287.30 binding on the newschoolboard; or 287.31 (2) if the effective date is July 1 of an odd-numbered 287.32 year, the contract of the district that previously employed the 287.33 largest proportion of teachers assigned to the new district 287.34 applies to all of the teachers assigned to the new district and 287.35 shall be binding on the newschoolboard. The application of 287.36 this section shall not result in a reduction in a teacher's 288.1 basic salary, payments for cocurricular or extracurricular 288.2 assignments, district contributions toward insurance coverages 288.3 or tax-sheltered annuities, leaves of absence, or severance pay 288.4 until a successor contract is executed between the newschool288.5 board and the exclusive representative. 288.6 Sec. 64. Minnesota Statutes 1996, section 122.532, 288.7 subdivision 4, is amended to read: 288.8 Subd. 4. [CONTRACTS; TERMINATION; TENURE.] Except as 288.9 provided in this section, the provisions of section 125.12 or 288.10 125.17 shall apply to the employment of each teacher by the new 288.11 employing district on the same basis as they would have applied 288.12 to the employment if the teacher had been employed by that new 288.13 district before the effective date of the consolidation or 288.14 dissolution and attachment. For the purpose of applying the 288.15 provisions of subdivision 3, clause (c), and the provisions of 288.16 section 125.12, subdivision 6b, eachschooldistrict must be 288.17 considered to have started school each year on the same date. 288.18 Sec. 65. Minnesota Statutes 1996, section 122.535, 288.19 subdivision 2, is amended to read: 288.20 Subd. 2. [AGREEMENT.] Theschoolboard may enter into one 288.21 or more agreements providing for instruction of its secondary 288.22 pupils in one or more districts. The agreementshallmust be 288.23 effective on July 1 and shall be for a specified or indefinite 288.24 number of years. The agreementshallmust set forth the 288.25 obligations of transportation, the tuition to be paid to the 288.26 providing district, and all additional charges and fees to be 288.27 paid to the providing district. The amount of tuition shall not 288.28 be subject to the provisions of section 124.18, subdivision 2. 288.29 The agreement may provide for negotiation of a plan for the 288.30 assignment or employment in a providing district as an exchange 288.31 teacher according to section 125.13, or placement on unrequested 288.32 leave of absence of teachers whose positions are discontinued as 288.33 a result of the agreement."Teacher" has the meaning given it288.34in section 125.12, subdivision 1.288.35 Sec. 66. Minnesota Statutes 1996, section 122.535, 288.36 subdivision 3, is amended to read: 289.1 Subd. 3. [INFORMATIONAL MEETING.] Before entering into 289.2 agreements permitted by subdivision 2 of this section, the 289.3schoolboardshallmust hold a public hearing. The boardshall289.4 must publish notice of the hearing in the newspaper with the 289.5 largest circulation in the district. If the board proposes to 289.6 enter into agreements with two or more districts, the board may 289.7 conduct separate or consolidated hearings. 289.8 Sec. 67. Minnesota Statutes 1996, section 122.535, 289.9 subdivision 4, is amended to read: 289.10 Subd. 4. [REVIEW AND COMMENT.] After the hearing required 289.11 by subdivision 3 and before entering into an agreement, the 289.12 boardshallmust submit the agreement to the commissionerof289.13children, families, and learningfor review and comment. 289.14 Sec. 68. Minnesota Statutes 1996, section 122.535, 289.15 subdivision 5, is amended to read: 289.16 Subd. 5. [AID PAYMENTS.] A district entering into an 289.17 agreement permitted in subdivision 2 of this sectionshallmust 289.18 continue to count its resident pupils who are educated in other 289.19 districts as resident pupils in the calculation of pupil units 289.20 for the purposes of state aids, levy limitations, and any other 289.21 purpose. A district may continue to provide transportation and 289.22 collect transportation aid for its resident pupils. For 289.23 purposes of aid calculations, the commissionerof children,289.24families, and learningmay adjust the cost per eligible pupil 289.25 transported to reflect changes in cost resulting from the 289.26 agreement, if any. 289.27 Sec. 69. Minnesota Statutes 1996, section 122.535, 289.28 subdivision 6, is amended to read: 289.29 Subd. 6. [SEVERANCE PAY.] A districtshallmust pay 289.30 severance pay to a teacher who is placed on unrequested leave of 289.31 absence by the district as a result of the agreement. A teacher 289.32 is eligible under this subdivision if the teacher: 289.33 (1) is a teacher,as defined in section 125.12, subdivision289.341,but not a superintendent; 289.35 (2) has a continuing contract with the district according 289.36 to section 125.12, subdivision 4. 290.1 The amount of severance payshallmust be equal to the 290.2 teacher's salary for the school year during which the teacher 290.3 was placed on unrequested leave of absence minus the gross 290.4 amount the teacher was paid during the 12 months following the 290.5 teacher's termination of salary, by an entity whose teachers by 290.6 statute or rule must possess a valid Minnesota teaching license, 290.7 and minus the amount a teacher receives as severance or other 290.8 similar pay according to a contract with the district or 290.9 district policy. These entities requiring a valid Minnesota 290.10 teaching license include, but are not limited to, theschool290.11 district that placed the teacher on unrequested leave of 290.12 absence, anotherschooldistrict in Minnesota, an education 290.13 district, an intermediate school district, a SC, a board formed 290.14 under section 471.59, a state residential academy, the Lola and 290.15 Rudy Perpich Minnesota center for arts education, a vocational 290.16 center, or a special education cooperative. These entities do 290.17 not include aschooldistrict in another state, a Minnesota 290.18 public post-secondary institution, or a state agency. Only 290.19 amounts earned by the teacher as a substitute teacher or in a 290.20 position requiring a valid Minnesota teaching license shall be 290.21 subtracted. A teacher may decline any offer of employment as a 290.22 teacher without loss of rights to severance pay. 290.23 To determine the amount of severance pay that is due for 290.24 the first six months following termination of the teacher's 290.25 salary, the district may require the teacher to provide 290.26 documented evidence of the teacher's employers and gross 290.27 earnings during that period. The districtshallmust pay the 290.28 teacher the amount of severance pay it determines to be due from 290.29 the proceeds of the levy for this purpose. To determine the 290.30 amount of severance pay that is due for the second six months of 290.31 the 12 months following the termination of the teacher's salary, 290.32 the district may require the teacher to provide documented 290.33 evidence of the teacher's employers and gross earnings during 290.34 that period. The districtshallmust pay the teacher the amount 290.35 of severance pay it determines to be due from the proceeds of 290.36 the levy for this purpose. 291.1 A teacher who receives severance pay under this subdivision 291.2 waives all further reinstatement rights under section 125.12, 291.3 subdivision 6a or 6b. If the teacher receives severance pay, 291.4 the teacher shall not receive credit for any years of service in 291.5 the district paying severance pay prior to the year in which the 291.6 teacher becomes eligible to receive severance pay. 291.7 The severance pay is subject to section 465.72. The 291.8 district may levy annually according to section 124.912, 291.9 subdivision 1, for the severance pay. 291.10 Sec. 70. Minnesota Statutes 1996, section 122.541, 291.11 subdivision 1, is amended to read: 291.12 Subdivision 1. [DISTRICT REQUIREMENTS.] Theschoolboards 291.13 of two or more districts may, after consultation with the 291.14 departmentof children, families, and learning, enter into an 291.15 agreement providing for: 291.16 (1) discontinuance by all districts except one of at least 291.17 the 10th, 11th, and 12th grades; and 291.18 (2) instruction of the pupils in the discontinued grades in 291.19 one of the cooperating districts. Each districtshallmust 291.20 continue to operate a school with at least three grades. Before 291.21 entering into a final agreement, the boardsshallmust provide a 291.22 copy of this agreement to the commissionerof children,291.23families, and learning. 291.24 Sec. 71. Minnesota Statutes 1996, section 122.541, 291.25 subdivision 2, is amended to read: 291.26 Subd. 2. [AID; TRANSPORTATION.] (a) Each districtshall291.27 must continue to count its resident pupils who are educated in a 291.28 cooperating district as resident pupils in the calculation of 291.29 pupil units for all purposes. The agreementshallmust provide 291.30 for tuition payments between or among the districts. 291.31 (b) Each districtshallmust continue to provide 291.32 transportation and collect transportation aid for its resident 291.33 pupils pursuant to sections 123.39, 124.223, and 124.225. A 291.34 district may provide some or all transportation to its resident 291.35 pupils by contracting with a cooperating district. For purposes 291.36 of section 124.225, the commissioner may adjust the base cost 292.1 per eligible pupil transported to reflect changes in costs 292.2 resulting from the agreement. 292.3 Sec. 72. Minnesota Statutes 1996, section 122.541, 292.4 subdivision 4, is amended to read: 292.5 Subd. 4. [NEGOTIATED PLAN FOR DISCONTINUED TEACHERS.] 292.6 Theschoolboard and exclusive bargaining representative of the 292.7 teachers in each district discontinuing grades may negotiate a 292.8 plan to assign or employ in a cooperating district or to place 292.9 on unrequested leave of absence all teachers whose positions are 292.10 discontinued as a result of the agreement. Theschoolboard and 292.11 exclusive bargaining representative of the teachers in each 292.12 district providing instruction to nonresident pupils may 292.13 negotiate a plan to employ teachers from a cooperating district 292.14 whose positions are discontinued as a result of the agreement. 292.15 If plans are negotiated and if the boards determine the plans 292.16 are compatible, the boards shall include the plans in their 292.17 agreement. 292.18 Sec. 73. Minnesota Statutes 1996, section 122.541, 292.19 subdivision 5, is amended to read: 292.20 Subd. 5. [COMBINED SENIORITY LIST.] If compatible plans 292.21 are not negotiated before the March 1 preceding any year of the 292.22 agreement, the cooperating districts shall be governed by this 292.23 subdivision. Insofar as possible, teachers who have acquired 292.24 continuing contract rights and whose positions are discontinued 292.25 as a result of the agreement shall be employed by a cooperating 292.26 district or assigned to teach in a cooperating district as 292.27 exchange teachers pursuant to section 125.13. If necessary, 292.28 teachers whose positions are discontinued as a result of the 292.29 agreement and who have acquired continuing contract rights shall 292.30 be placed on unrequested leave of absence in fields in which 292.31 they are licensed in the inverse order in which they were 292.32 employed by a cooperating district, according to a combined 292.33 seniority list of teachers in the cooperating districts. For 292.34 the purpose of establishing a combined seniority list, each 292.35schooldistrict must be considered to have started school each 292.36 year on the same date. 293.1 Sec. 74. Minnesota Statutes 1996, section 122.541, 293.2 subdivision 6, is amended to read: 293.3 Subd. 6. [NOTICE AND HEARING.] Prior to entering into an 293.4 agreement, theschoolboard shall consult with the community at 293.5 an informational meeting. The boardshallmust publish notice 293.6 of the meeting in the official newspaper of the district and may 293.7 send written notice of the meeting to parents of pupils who 293.8 would be affected. 293.9 Sec. 75. Minnesota Statutes 1996, section 122.541, 293.10 subdivision 7, is amended to read: 293.11 Subd. 7. [MEETING LOCATION.] Notwithstanding any law to 293.12 the contrary,schoolboards that have an agreement may hold a 293.13 valid joint meeting at any location that would be permissible 293.14 for one of theschoolboards participating in the meeting. A 293.15schoolboard that has an agreement may hold a meeting in any 293.16 district that is a party to the agreement. Theschoolboard 293.17 shall comply with section 471.705 and any other law applicable 293.18 to a meeting of aschoolboard. 293.19 Sec. 76. Minnesota Statutes 1996, section 122.895, is 293.20 amended to read: 293.21 122.895 [EMPLOYEES OF COOPERATIVE DISTRICTS UPON 293.22 DISSOLUTION OR WITHDRAWAL.] 293.23 Subdivision 1. [DEFINITIONS.] For the purposes of this 293.24 section, the terms defined in this subdivision have the meanings 293.25 given them. 293.26 (a) "Teacher" means a teacheras defined in section 125.12,293.27subdivision 1,who is employed by a district or center listed in 293.28 subdivision 2, except that it does not include a superintendent. 293.29 (b) "Cooperative" means any district or center to which 293.30 this section applies. 293.31 (c) "Withdrawal" means aschooldistrict's removal of its 293.32 students from a program of instruction, counseling, or 293.33 evaluation provided by a cooperative in order to provide the 293.34 same educational services by other means. 293.35 (d) "Education support position" means a position not 293.36 requiring a teaching license in which an employee assists a 294.1 teacher by providing instructional, counseling, or evaluative 294.2 support services directly to students. 294.3 (e) "Education support employee" means an employee holding 294.4 an education support position. 294.5 Subd. 2. [APPLICABILITY.] This section applies to: 294.6 (1) an education district organized according to sections 294.7 122.91 to 122.95; 294.8 (2) a cooperative vocational center organized according to 294.9 section 123.351; 294.10 (3) a joint powers district or board organized according to 294.11 section 471.59 which employs teachers to provide instruction; 294.12 (4) an intermediate district organized according to chapter 294.13 136D; 294.14 (5) a service cooperative which employs teachers to provide 294.15 instruction; and 294.16 (6)schooldistricts participating in an agreement for the 294.17 cooperative provision of special education services to children 294.18 with disabilities according to section 120.17, subdivision 4. 294.19 Subd. 2a. [AGREEMENTS FOR COOPERATIVE SPECIAL EDUCATION.] 294.20 (a) Upon the termination of an agreement according to section 294.21 120.17, subdivision 4, a teacher employed to provide special 294.22 education services by aschooldistrict participating in the 294.23 agreement will be afforded rights to employment by otherschool294.24 districts according to subdivisions 3, 4, and 5. Nonlicensed 294.25 employees of a participating district employed to provide 294.26 special education services will, upon the agreement's 294.27 termination, be afforded rights to employment by other 294.28 participating districts according to subdivision 8. 294.29 (b) Upon aschooldistrict's withdrawal from the 294.30 cooperative provision of special education under an agreement 294.31 according to section 120.17, subdivision 4, a teacher employed 294.32 to provide special education services by a participating 294.33 district will be afforded rights to employment by otherschool294.34 districts according to subdivisions 3, 6, and 7. Nonlicensed 294.35 employees of a participating district employed to provide 294.36 special education services will be afforded rights to employment 295.1 by the withdrawing district according to subdivision 9. 295.2 Subd. 3. [NOTIFICATION OF TEACHERS.] In any year in which 295.3 a cooperative dissolves or a member withdraws from a 295.4 cooperative, the governing board of a cooperativeshallmust 295.5 provide all teachers employed by the cooperative written 295.6 notification by March 10 of: 295.7 (1) the dissolution of the cooperative and the effective 295.8 date of dissolution; or 295.9 (2) the withdrawal of a member of the cooperative and the 295.10 effective date of withdrawal. 295.11 Subd. 4. [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 295.12 IN A MEMBER DISTRICT UPON DISSOLUTION.] (a) This subdivision 295.13 applies to a teacher previously employed in a member district 295.14 who: 295.15 (1) had a continuing contract with that member district; 295.16 (2) has been continuously employed immediately after 295.17 leaving that member district by one or more cooperatives that 295.18 provided instruction to pupils enrolled in that member district; 295.19 and 295.20 (3) is either a probationary teacher or has a continuing 295.21 contract with the cooperative that is dissolving. 295.22 (b) A teacher may elect to resume the teacher's continuing 295.23 contract with the member district by which the teacher was 295.24 previously employed by filing a written notice of the election 295.25 with the memberschoolboard on or before March 20. Failure by 295.26 a teacher to file a written notice by March 20 of the year the 295.27 teacher receives a notice according to subdivision 3 constitutes 295.28 a waiver of the teacher's rights under this subdivision. 295.29 The member districtshallmust make reasonable realignments 295.30 of positions to accommodate the seniority rights of a teacher 295.31 electing to resume continuing contract rights in the member 295.32 district according to this subdivision. 295.33 Upon returning the teacher shall receive credit for: 295.34 (1) all years of continuous service under contract with the 295.35 cooperative and the member district for all purposes relating to 295.36 seniority, compensation, and employment benefits; and 296.1 (2) the teacher's current educational attainment on the 296.2 member district's salary schedule. 296.3 (c) A teacher who does not elect to return to the member 296.4 district according to this subdivision may exercise rights under 296.5 subdivision 5. 296.6 Subd. 5. [RIGHTS OF OTHER TEACHERS.] (a) This subdivision 296.7 applies to a teacher who: 296.8 (1) has a continuing contract with the cooperative; and 296.9 (2) either did not have a continuing contract with any 296.10 member district or does not return to a member district 296.11 according to the procedures set forth in subdivision 4, 296.12 paragraph (b). 296.13 (b) By May 10 of the school year in which the cooperative 296.14 provides the notice required by subdivision 3, clause (1), the 296.15 cooperativeshallmust provide to each teacher described in 296.16 subdivision 4 and this subdivision a written notice of available 296.17 teaching positions in any member district to which the 296.18 cooperative was providing services at the time of dissolution. 296.19 Available teaching positions are all teaching positions that, 296.20 during the school year following dissolution: 296.21 (1) are positions for which the teacher is licensed; and 296.22 (2) are not assigned to a continuing contract teacher 296.23 employed by a memberschooldistrict after any reasonable 296.24 realignments which may be necessary under the applicable 296.25 provisions of section 125.12, subdivision 6a or 6b, to 296.26 accommodate the seniority rights of teachers employed by the 296.27 member district. 296.28 (c) On or before June 1 of the school year in which the 296.29 cooperative provides the notice required by subdivision 3, 296.30 clause (1), any teacher wishing to do so must file with the 296.31schoolboard a written notice of the teacher's intention to 296.32 exercise the teacher's rights to an available teaching 296.33 position. Available teaching positionsshallmust be offered to 296.34 teachers in order of their seniority within the dissolved 296.35 cooperative. 296.36 (d) Paragraph (e) applies to: 297.1 (1) a district that was a member of a dissolved 297.2 cooperative; or 297.3 (2) any other district that, except as a result of open 297.4 enrollment according to section 120.062, provides essentially 297.5 the same instruction provided by the dissolved cooperative to 297.6 pupils enrolled in a former member district. 297.7 (e) For five years following dissolution of a cooperative, 297.8 a district to which this paragraph applies may not appoint a new 297.9 teacher or assign a probationary or provisionally licensed 297.10 teacher to any position requiring licensure in a field in which 297.11 the dissolved cooperative provided instruction until the 297.12 following conditions are met: 297.13 (1) a district to which this paragraph applies has provided 297.14 each teacher formerly employed by the dissolved cooperative, who 297.15 holds the requisite license, written notice of the position; and 297.16 (2) no teacher holding the requisite license has filed a 297.17 written request to be appointed to the position with theschool297.18 board within 30 days of receiving the notice. 297.19 If no teacher files a request according to clause (2), the 297.20 district may fill the position as it sees fit. During any part 297.21 of the school year in which dissolution occurs and the first 297.22 school year following dissolution, a teacher may file a request 297.23 for an appointment according to this paragraph regardless of 297.24 prior contractual commitments with other member districts. 297.25 Available teaching positionsshallmust be offered to teachers 297.26 in order of their seniority on a combined seniority list of the 297.27 teachers employed by the cooperative and the appointing district. 297.28 (f) A teacher appointed according to this subdivision is 297.29 not required to serve a probationary period. The teacher shall 297.30 receive credit on the appointing district's salary schedule for 297.31 the teacher's years of continuous service under contract with 297.32 the cooperative and the member district and the teacher's 297.33 educational attainment at the time of appointment or shall 297.34 receive a comparable salary, whichever is less. The teacher 297.35 shall receive credit for accumulations of sick leave and rights 297.36 to severance benefits as if the teacher had been employed by the 298.1 member district during the teacher's years of employment by the 298.2 cooperative. 298.3 Subd. 6. [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 298.4 IN A MEMBER DISTRICT UPON WITHDRAWAL OF THE DISTRICT.] (a) This 298.5 subdivision applies to a teacher previously employed by a member 298.6 district who: 298.7 (1) had a continuing contract with the member district 298.8 which withdraws from a cooperative; 298.9 (2) has been continuously employed immediately after 298.10 leaving that member district by one or more cooperatives that 298.11 provided instruction to pupils enrolled in that member district; 298.12 and 298.13 (3) is either a probationary teacher or has a continuing 298.14 contract with the cooperative from which the member district is 298.15 withdrawing. 298.16 (b) A teacher may elect to resume the teacher's continuing 298.17 contract with the withdrawing district by which the teacher was 298.18 previously employed by filing a written notice of the election 298.19 with the withdrawing school board on or before March 20. 298.20 Failure by a teacher to file written notice by March 20 of the 298.21 year the teacher receives a notice according to subdivision 3 298.22 constitutes a waiver of a teacher's rights under this 298.23 subdivision. 298.24 The member districtshallmust make reasonable realignments 298.25 of positions to accommodate the seniority rights of a teacher 298.26 electing to resume continuing contract rights in the member 298.27 district according to this subdivision. 298.28 Upon returning, the teacher shall receive credit for: 298.29 (1) all years of continuous service under contract with the 298.30 cooperative and the member district for all purposes relating to 298.31 seniority, compensation, and employment benefits; and 298.32 (2) the teacher's current educational attainment on the 298.33 member district's salary schedule. 298.34 Subd. 7. [RIGHTS OF A TEACHER PLACED ON UNREQUESTED LEAVE 298.35 UPON WITHDRAWAL.] (a) This subdivision applies to a teacher who 298.36 is placed on unrequested leave of absence, according to section 299.1 125.12, subdivision 6a or 6b, in the year in which the 299.2 cooperative provides the notice required by subdivision 3, 299.3 clause (2), by a cooperative from which a member district is 299.4 withdrawing. 299.5 This subdivision applies to a district that, except as a 299.6 result of open enrollment according to section 120.062, provides 299.7 essentially the same instruction provided by the cooperative to 299.8 pupils enrolled in the withdrawing district. 299.9 (b) A teacher shall be appointed by a district to which 299.10 this subdivision applies to an available teaching position which: 299.11 (1) is in a field of licensure in which pupils enrolled in 299.12 the withdrawing district received instruction from the 299.13 cooperative; and 299.14 (2) is within the teacher's field of licensure. 299.15 For the purpose of this paragraph, an available teaching 299.16 position means any position that is vacant or would otherwise be 299.17 occupied by a probationary or provisionally licensed teacher. 299.18 (c) A board may not appoint a new teacher to an available 299.19 teaching position unless no teacher holding the requisite 299.20 license on unrequested leave from the cooperative has filed a 299.21 written request for appointment. The requestshallmust be 299.22 filed with the board of the appointing district within 30 days 299.23 of receiving written notice from the appointing board that it 299.24 has an available teaching position. If no teacher holding the 299.25 requisite license files a request according to this paragraph, 299.26 the district may fill the position as it sees fit. Available 299.27 teaching positionsshallmust be offered to teachers in order of 299.28 their seniority on a combined seniority list of the teachers 299.29 employed by the cooperative and the withdrawing member district. 299.30 (d) A teacher appointed according to this subdivision is 299.31 not required to serve a probationary period. The teacher shall 299.32 receive credit on the appointing district's salary schedule for 299.33 the teacher's years of continuous service under contract with 299.34 the cooperative and the member district and the teacher's 299.35 educational attainment at the time of appointment or shall 299.36 receive a comparable salary, whichever is less. The teacher 300.1 shall receive credit for accumulations of sick leave and rights 300.2 to severance benefits as if the teacher had been employed by the 300.3 member district during the teacher's years of employment by the 300.4 cooperative. 300.5 Subd. 8. [NONLICENSED EMPLOYEES UPON DISSOLUTION.] (a) A 300.6 nonlicensed employee who is terminated by a cooperative that 300.7 dissolves shall be appointed by a district that is a member of 300.8 the dissolved cooperative to a position that is created within 300.9 36 months of the dissolution of the cooperative and is created 300.10 as a result of the dissolution of the cooperative. A position 300.11shallmust be offered to a nonlicensed employee, who fulfills 300.12 the qualifications for that position, in order of the employee's 300.13 seniority within the dissolved cooperative. 300.14 (b) When an education support employee is terminated by a 300.15 cooperative that dissolves, a district that is a member of the 300.16 dissolved cooperativeshallmust appoint the employee to an 300.17 education support position if the position is created within 36 300.18 months of the dissolution of the cooperative as a result of the 300.19 dissolution. An education support positionshallmust be 300.20 offered to an education support employee, who fulfills the 300.21 qualifications for that position, in order of the employee's 300.22 seniority within the dissolved cooperative. 300.23 (c) An employee appointed according to this subdivision 300.24 shall receive credit for the employee's: 300.25 (1) continuous years of service with the cooperative on the 300.26 appointing district's compensation schedule and seniority list; 300.27 and 300.28 (2) unused sick leave accumulated while employed by the 300.29 cooperative. 300.30 (d) Notwithstanding section 179A.12 or Minnesota Rules, 300.31 part 5510.0510, subparts 1 to 4, a representation petition 300.32 seeking the exclusive representation of a unit of education 300.33 support employees employed by a district formerly a member of a 300.34 dissolved cooperative may be considered by the commissioner of 300.35 the bureau of mediation services at any time within 11 months of 300.36 the dissolution of the cooperative. 301.1 Subd. 9. [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] (a) A 301.2 nonlicensed employee of a cooperative whose active employment is 301.3 discontinued or reduced as a result of the withdrawal of a 301.4 member district from the cooperative shall be appointed by the 301.5 withdrawing member district to a position that is created within 301.6 36 months of the withdrawal and is created as a result of the 301.7 withdrawal of the member district. A positionshallmust be 301.8 offered to a nonlicensed employee, who fulfills the 301.9 qualifications for that position, in order of the employee's 301.10 seniority within the cooperative from which a member district 301.11 withdraws. 301.12 (b) When an education support employee of a cooperative has 301.13 active employment discontinued or reduced as a result of the 301.14 withdrawal of a member district from the cooperative, the 301.15 withdrawing member districtshallmust appoint the employee to 301.16 an education support position if the position is created within 301.17 36 months of the withdrawal as a result of the withdrawal of the 301.18 member district. An education support positionshallmust be 301.19 offered to an education support employee, who meets the 301.20 qualifications for that position, in order of the employee's 301.21 seniority within the cooperative from which a member district 301.22 withdraws. 301.23 (c) An employee appointed according to this subdivision 301.24 shall receive credit for the employee's: 301.25 (1) continuous years of service with the cooperative on the 301.26 appointing district's compensation schedule and seniority list; 301.27 and 301.28 (2) unused sick leave accumulated while employed by the 301.29 cooperative. 301.30 (d) Notwithstanding section 179A.12 or Minnesota Rules, 301.31 part 5510.0510, subparts 1 to 4, a representation petition 301.32 seeking the exclusive representation of a unit of education 301.33 support employees employed by a member district which has 301.34 withdrawn from a cooperative may be considered by the 301.35 commissioner of the bureau of mediation services at any time 301.36 within 11 months of the district's withdrawal from the 302.1 cooperative. 302.2 Subd. 10. [COOPERATIVES THAT MERGE.] Notwithstanding 302.3 subdivisions 1 to 9, the following paragraphs apply to 302.4 cooperatives that merge. 302.5 (a) If a cooperative enters into an agreement to merge with 302.6 another cooperative, the boards of the cooperatives and the 302.7 exclusive representatives of the teachers in the cooperatives 302.8 and the teachers in each member district may negotiate a plan to 302.9 assign or employ in a member district or to place on unrequested 302.10 leave of absence all teachers whose positions are discontinued 302.11 as a result of the agreement. If plans are negotiated and if 302.12 the boards determine the plans are compatible, the boardsshall302.13 must include the plans in their agreement. 302.14 (b) If compatible plans are not negotiated under paragraph 302.15 (a) by the March 1 preceding the effective date of the merger of 302.16 the cooperatives, subdivisions 2 to 9 apply to teachers and 302.17 nonlicensed employees whose positions are terminated as a result 302.18 of an agreement to merge cooperatives. 302.19 Sec. 77. Minnesota Statutes 1996, section 122.91, 302.20 subdivision 2, is amended to read: 302.21 Subd. 2. [AGREEMENT.]SchoolBoards meeting the 302.22 requirements of subdivision 3 may enter into a written agreement 302.23 to establish an education district. Once established, cities, 302.24 counties, and other governmental units as defined in section 302.25 471.59, may become members of the education district. The 302.26 agreement and subsequent amendments must be adopted by majority 302.27 vote of the full membership of each board. 302.28 Sec. 78. Minnesota Statutes 1996, section 122.91, 302.29 subdivision 2a, is amended to read: 302.30 Subd. 2a. [AGREEMENT; SPECIAL PROVISIONS.] The education 302.31 district agreement may contain a special provision adopted by 302.32 the vote of a majority of the full membership of each of the 302.33 boards of the memberschooldistricts to allow a post-secondary 302.34 institution or cities, counties, and other governmental units to 302.35 become a member of the education district. 302.36 Sec. 79. Minnesota Statutes 1996, section 122.91, 303.1 subdivision 3a, is amended to read: 303.2 Subd. 3a. [MEETING WITH REPRESENTATIVES.] Before entering 303.3 into an agreement, theschoolboard of each member district must 303.4 meet and confer with the exclusive representatives of the 303.5 teachers of eachschooldistrict proposing to enter the 303.6 education district. 303.7 Sec. 80. Minnesota Statutes 1996, section 122.91, 303.8 subdivision 4, is amended to read: 303.9 Subd. 4. [NOTICE AND HEARING.] Before entering into an 303.10 agreement, theschoolboard of each member districtshallmust 303.11 publish a summary of the proposed agreement and its effect upon 303.12 the district at least once in a newspaper of general circulation 303.13 in the districta summary of the proposed agreement and its303.14effect upon the district. The boardshallmust conduct a public 303.15 hearing on the proposed agreement not more than ten days after 303.16 the notice and at least 30 days before entering into an 303.17 agreement. 303.18 Sec. 81. Minnesota Statutes 1996, section 122.91, 303.19 subdivision 6, is amended to read: 303.20 Subd. 6. [SERVICE COOPERATIVES.] If requested, service 303.21 cooperativesshallmust provide assistance to districts in 303.22 establishing education districts. The assistance may include 303.23 determination of appropriate boundaries of the education 303.24 district and development of the agreement. The service 303.25 cooperatives may provide any other services requested by the 303.26 education district. 303.27 Sec. 82. Minnesota Statutes 1996, section 122.93, 303.28 subdivision 3, is amended to read: 303.29 Subd. 3. [CONTRACTS.] The board may enter into contracts 303.30 withschooldistricts and other public and private agencies to 303.31 provide services needed in the education district. 303.32 Sec. 83. Minnesota Statutes 1996, section 122.93, 303.33 subdivision 8, is amended to read: 303.34 Subd. 8. [DISCONTINUING GRADES.] The board of aschool303.35 district that is a member of an education district may 303.36 discontinue any of kindergarten through grade 12 or part of 304.1 those grades and provide instruction for those grades or parts 304.2 of grades within the education district. 304.3 Sec. 84. Minnesota Statutes 1996, section 122.95, 304.4 subdivision 1, is amended to read: 304.5 Subdivision 1. [DEFINITION.] For the purposes of this 304.6 section, "teacher"has the meaning given it in section 125.12,304.7subdivision 1, except that itdoes not include a superintendent. 304.8 Sec. 85. Minnesota Statutes 1996, section 122.95, 304.9 subdivision 1a, is amended to read: 304.10 Subd. 1a. [FILLING POSITIONS; NEGOTIATED AGREEMENTS.] 304.11 Theschoolboards in all member districts and exclusive 304.12 bargaining representatives of the teachers in all member 304.13 districts may negotiate a plan for filling positions resulting 304.14 from implementation of the education district agreement. If the 304.15 plan is negotiated among the memberschooldistricts and the 304.16 exclusive bargaining representative of each memberschool304.17 district and unanimously agreed upon, in writing, the education 304.18 districtshallmust include the plan in the education district 304.19 agreement. If a plan is not negotiated, the education district 304.20 is governed by subdivision 2. 304.21 Sec. 86. Minnesota Statutes 1996, section 122.95, 304.22 subdivision 2, is amended to read: 304.23 Subd. 2. [FILLING POSITIONS.] (a) When an education 304.24 district board or a member board is filling a position resulting 304.25 from implementation of the agreement, the board may offer the 304.26 position to a teacher currently employed by a member district 304.27 according to the exchange teacher provisions of section 125.13. 304.28 (b) If the position is not filled by a currently employed 304.29 teacher, the boardshallmust offer the position to an available 304.30 teacher in the order of seniority in fields of licensure on a 304.31 combined seniority list of all available teachers in the member 304.32 districts. For the purpose of establishing a combined seniority 304.33 list, eachschooldistrict must be considered to have started 304.34 school each year on the same date. An available teacher is a 304.35 teacher in a member district who: 304.36 (1) was placed on unrequested leave of absence by a member 305.1 district, according to section 125.12, subdivision 6a or 6b, or 305.2 was terminated according to section 125.17, subdivision 11, not 305.3 more than one year before the initial formation of an education 305.4 district as a result of an intention to enter into an education 305.5 district agreement; 305.6 (2) was placed on unrequested leave of absence by a member 305.7 district, according to section 125.12, subdivision 6a or 6b, or 305.8 was terminated according to section 125.17, subdivision 11, as a 305.9 result of implementing the education district agreement, after 305.10 the formation of the education district; or 305.11 (3) is placed on unrequested leave of absence by a member 305.12 district, according to section 125.12, subdivision 6a or 6b, or 305.13 is terminated according to section 125.17, subdivision 11, as a 305.14 result of implementing the education district, in the same year 305.15 the position is filled. 305.16 (c) If no currently employed teacher or available teacher 305.17 accepts the position, the board may fill the position with any 305.18 other teacher. 305.19 (d) Any teacher who has been placed on unrequested leave of 305.20 absence or who has been terminated has a right to a position 305.21 only as long as the teacher has a right to reinstatement in a 305.22 member district under section 125.12, subdivision 6a or 6b, or 305.23 125.17, subdivision 11. 305.24 Sec. 87. Minnesota Statutes 1996, section 122.95, 305.25 subdivision 4, is amended to read: 305.26 Subd. 4. [DETERMINATION OF REASON FOR LEAVE.] When a 305.27 school board that intends to enter into an education district 305.28 agreement, and at the time aschoolboard that has entered into 305.29 an education district agreement places a teacher on unrequested 305.30 leave of absence, according to section 125.12, subdivision 6a or 305.31 6b, or terminates a teacher's services under section 125.17, 305.32 subdivision 11, the boardshallmust make a determination 305.33 whether the placement or termination is a result of implementing 305.34 the education district agreement. That determinationshallmust 305.35 be included in the notice of proposed placement or termination, 305.36 may be reviewed at a hearing upon request of the teacher, 306.1 andshallmust be included in the notice of final action of the 306.2 board. If the determination is not disputed by the teacher 306.3 before June 1 or the final date required for action by the 306.4 board, the teacher shall be deemed to acquiesce in the board's 306.5 determination. 306.6 Sec. 88. Minnesota Statutes 1996, section 123.35, 306.7 subdivision 19a, is amended to read: 306.8 Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL 306.9 SUPPORT.] (a)No schoolA districtshallmust not be required by 306.10 any type of formal or informal agreement except an agreement to 306.11 provide building space according to paragraph (f), including a 306.12 joint powers agreement, or membership in any cooperative unit 306.13 defined in section 123.35, subdivision 19b, paragraph (d), to 306.14 participate in or provide financial support for the purposes of 306.15 the agreement for a time period in excess of one fiscal year, or 306.16 the time period set forth in this subdivision. Any agreement, 306.17 part of an agreement, or other type of requirement to the 306.18 contrary is void. 306.19 (b) This subdivision shall not affect the continued 306.20 liability of aschooldistrict for its share of bonded 306.21 indebtedness or other debt incurred as a result of any agreement 306.22 before July 1, 1993. Theschooldistrict is liable only until 306.23 the obligation or debt is discharged and only according to the 306.24 payment schedule in effect on July 1, 1993, except that the 306.25 payment schedule may be altered for the purpose of restructuring 306.26 debt or refunding bonds outstanding on July 1, 1993, if the 306.27 annual payments of theschooldistrict are not increased and if 306.28 the total obligation of the school district for its share of 306.29 outstanding bonds or other debt is not increased. 306.30 (c) To cease participating in or providing financial 306.31 support for any of the services or activities relating to the 306.32 agreement or to terminate participation in the agreement, the 306.33schoolboardshallmust adopt a resolution and notify other 306.34 parties to the agreement of its decision on or before February 1 306.35 of any year. The cessation or withdrawal shall be effective 306.36 June 30 of the same year except that for a member of an 307.1 education district organized under sections 122.91 to 122.95 or 307.2 an intermediate district organized under chapter 136D, cessation 307.3 or withdrawal shall be effective June 30 of the following fiscal 307.4 year. At the option of theschoolboard, cessation or 307.5 withdrawal may be effective June 30 of the following fiscal year 307.6 for a district participating in any type of agreement. 307.7 (d) Before issuing bonds or incurring other debt, the 307.8 governing body responsible for implementing the agreementshall307.9 must adopt a resolution proposing to issue bonds or incur other 307.10 debt and the proposed financial effect of the bonds or other 307.11 debt upon each participating district. The resolutionshall307.12 must be adopted within a time sufficient to allow theschool307.13 board to adopt a resolution within the time permitted by this 307.14 paragraph and to comply with the statutory deadlines set forth 307.15 in sections 122.895, 125.12, and 125.17. The governing body 307.16 responsible for implementing the agreement shall notify each 307.17 participatingschoolboard of the contents of the resolution. 307.18 Within 120 days of receiving the resolution of the governing 307.19 body, the school board of the participating district shall adopt 307.20 a resolution stating: 307.21 (1) its concurrence with issuing bonds or incurring other 307.22 debt; 307.23 (2) its intention to cease participating in or providing 307.24 financial support for the service or activity related to the 307.25 bonds or other debt; or 307.26 (3) its intention to terminate participation in the 307.27 agreement. 307.28 Aschoolboard adopting a resolution according to clause 307.29 (1) is liable for its share of bonded indebtedness or other debt 307.30 as proposed by the governing body implementing the agreement. A 307.31 school board adopting a resolution according to clause (2) is 307.32 not liable for the bonded indebtedness or other debt, as 307.33 proposed by the governing body, related to the services or 307.34 activities in which the district ceases participating or 307.35 providing financial support. Aschoolboard adopting a 307.36 resolution according to clause (3) is not liable for the bonded 308.1 indebtedness or other debt proposed by the governing body 308.2 implementing the agreement. 308.3 (e) After July 1, 1993, a district is liable according to 308.4 paragraph (d) for its share of bonded indebtedness or other debt 308.5 incurred by the governing body implementing the agreement to the 308.6 extent that the bonds or other debt are directly related to the 308.7 services or activities in which the district participates or for 308.8 which the district provides financial support. The district has 308.9 continued liability only until the obligation or debt is 308.10 discharged and only according to the payment schedule in effect 308.11 at the time the governing body implementing the agreement 308.12 provides notice to the school board, except that the payment 308.13 schedule may be altered for the purpose of refunding the 308.14 outstanding bonds or restructuring other debt if the annual 308.15 payments of the district are not increased and if the total 308.16 obligation of the district for the outstanding bonds or other 308.17 debt is not increased. 308.18 (f) Aschooldistrict that is a member of a cooperative 308.19 unit as defined in subdivision 19b, paragraph (d), may obligate 308.20 itself to participate in and provide financial support for an 308.21 agreement with a cooperative unit to provide school building 308.22 space for a term not to exceed two years with an option on the 308.23 part of the district to renew for an additional two years. 308.24 Sec. 89. Minnesota Statutes 1996, section 123.35, 308.25 subdivision 19b, is amended to read: 308.26 Subd. 19b. [WITHDRAWING FROM COOPERATIVE.] If aschool308.27 district withdraws from a cooperative unit defined in paragraph 308.28 (d), the distribution of assets and assignment of liabilities to 308.29 the withdrawing district shall be determined according to this 308.30 subdivision. 308.31 (a) The withdrawing district remains responsible for its 308.32 share of debt incurred by the cooperative unit according to 308.33 section 123.35, subdivision 19a. Theschooldistrict and 308.34 cooperative unit may mutually agree, through a board resolution 308.35 by each, to terms and conditions of the distribution of assets 308.36 and the assignment of liabilities. 309.1 (b) If the cooperative unit and theschooldistrict cannot 309.2 agree on the terms and conditions, the commissionerof children,309.3families, and learningshall resolve the dispute by determining 309.4 the district's proportionate share of assets and liabilities 309.5 based on the district's enrollment, financial contribution, 309.6 usage, or other factor or combination of factors determined 309.7 appropriate by the commissioner. The assetsshallmust be 309.8 disbursed to the withdrawing district in a manner that minimizes 309.9 financial disruption to the cooperative unit. 309.10 (c) Assets related to an insurance pool shall not be 309.11 disbursed to a member district under paragraph (b). 309.12 (d) For the purposes of this section, a cooperative unit is: 309.13 (1) an education district organized under sections 122.91 309.14 to 122.95; 309.15 (2) a cooperative vocational center organized under section 309.16 123.351; 309.17 (3) an intermediate district organized under chapter 136D; 309.18 (4) a service cooperative organized under section 123.582; 309.19 or 309.20 (5) a regional management information center organized 309.21 under section 121.935 or as a joint powers district according to 309.22 section 471.59. 309.23 Sec. 90. Minnesota Statutes 1996, section 123.35, 309.24 subdivision 21, is amended to read: 309.25 Subd. 21. [APPEAL TO COMMISSIONER.] If a cooperative unit 309.26 as defined in subdivision 19b, paragraph (d), denies membership 309.27 in the unit to aschooldistrict, theschooldistrict may appeal 309.28 to the commissionerof children, families, and learning. The 309.29 commissioner may require the cooperative unit to grant the 309.30 district membership. 309.31 Sec. 91. Minnesota Statutes 1996, section 123.351, 309.32 subdivision 1, is amended to read: 309.33 Subdivision 1. [ESTABLISHMENT.] Two or more independent 309.34 school districts may enter into an agreement to establish a 309.35 cooperative center to provide for vocational education and other 309.36 educational services upon the vote of a majority of the full 310.1 membership of each of the boards of the districts entering into 310.2 the agreement. The agreement may also provide for membership by 310.3 cities, counties, and other governmental units as defined in 310.4 section 471.59. When a resolution approving this action has 310.5 been adopted by the board of a district, the resolution shall be 310.6 published once in a newspaper of general circulation in the 310.7 district. If a petition for referendum on the question of the 310.8 district entering into the agreement, containing signatures of 310.9 qualified voters of the district equal to five percent of the 310.10 number of voters at the last school district general election, 310.11 is filed with the clerk of the board within 60 days after 310.12 publication of the resolution, the boardshallmust not enter 310.13 into the agreement until the question has been submitted to the 310.14 voters of the district at a special election. This election 310.15shallmust be conducted and canvassed in the same manner as 310.16 school district general elections. If a majority of the total 310.17 number of votes cast on the question within the district is in 310.18 favor of the proposition, the board may enter into an agreement 310.19 to establish the center for purposes described in this section. 310.20 Sec. 92. Minnesota Statutes 1996, section 123.351, 310.21 subdivision 3, is amended to read: 310.22 Subd. 3. [GOVERNING BOARD.] (a) The centershallmust be 310.23 operated by a center board of not less than five members which 310.24 shall consist of members fromschoolboards of each of the 310.25 participatingschooldistricts within the center and member 310.26 cities, counties, and other governmental units, appointed by 310.27 their respective boards. Each participatingschooldistrict 310.28shallmust have at least one member on the center board. The 310.29 center boardshallmust choose an administrative officer to 310.30 administer center board policy and directives who shall serve as 310.31 an ex officio member of the board but shall not have a vote. 310.32 (b) The terms of office of the first members of the center 310.33 boardshallmust be determined by lot as follows: one-third of 310.34 the members for one year, one-third for two years, and the 310.35 remainder for three years, all terms to expire on June 30 of the 310.36 appropriate year; provided that if the number of members is not 311.1 evenly divisible by three, the membership will be as evenly 311.2 distributed as possible among one, two and three year terms with 311.3 the remaining members serving the three year term. Thereafter 311.4 the terms shall be for three years commencing on July 1 of each 311.5 year. If a vacancy occurs on the center board, itshallmust be 311.6 filled by the appropriate school board within 90 days. A person 311.7 appointed to the center board shall qualify as a center board 311.8 member by filing with the chair a written certificate of 311.9 appointment from the appointing school board. 311.10 (c) The first meeting of a center boardshallmust be at a 311.11 time mutually agreed upon by center board members. At this 311.12 meeting, the center boardshallmust choose its officers and 311.13 conduct any other necessary organizational business. Thereafter 311.14 the center boardshallmust meet onthe first ofJuly 1 of each 311.15 year or as soon thereafter as practicable pursuant to notice 311.16 sent to all center board members by the chief executive officer 311.17 of the center. 311.18 (d) The officers of the center board shall be a chair, 311.19 vice-chair, clerk and treasurer, no two of whom when possible 311.20 shall be from the same school district. The chair shall preside 311.21 at all meetings of the center board except in the chair's 311.22 absence the vice-chair shall preside. The clerk shall keep a 311.23 complete record of the minutes of each meeting and the treasurer 311.24 shall be the custodian of the funds of the center. Insofar as 311.25 applicable, sections 123.33 and 123.34, shall apply to the board 311.26 and officers of the center. 311.27 (e) Each participatingschooldistrictshallmust have 311.28 equal voting power with at least one vote. A majority of the 311.29 center board shall be a quorum. Any motion other than 311.30 adjournment shall pass only upon receiving a majority of the 311.31 votes of the entire center board. 311.32 Sec. 93. Minnesota Statutes 1996, section 123.351, 311.33 subdivision 4, is amended to read: 311.34 Subd. 4. [POWERS AND DUTIES.] (a) The center board shall 311.35 have the general charge of the business of the center and the 311.36 ownership of facilities. Where applicable, section 123.36, 312.1 shall apply. The center board may not issue bonds in its 312.2 behalf. Each participating district may issue its bonds for the 312.3 purpose of acquisition and betterment of center facilities in 312.4 the amount certified by the center board to such participating 312.5 district in accordance with chapter 475. 312.6 (b) The center board (1) may furnish vocational offerings 312.7 to any eligible person residing in any participating district; 312.8 (2) may provide special education for the handicapped and 312.9 disadvantaged; and (3) may provide any other educational 312.10 programs or services defined in section 123.582, subdivisions 7 312.11 and 8, agreed upon by the participating members. Academic 312.12 offerings shall be provided only under the direction of properly 312.13 licensed academic supervisory personnel. 312.14 (c) In accordance with subdivision 5, clause (b), the 312.15 center board shall certify to each participating district the 312.16 amount of funds assessed to the district as its proportionate 312.17 share required for the conduct of the educational programs, 312.18 payment of indebtedness, and all other proper expenses of the 312.19 center. 312.20 (d) The center boardshallmust employ and contract with 312.21 necessary qualified teachers and administrators and may 312.22 discharge the same for cause pursuant to section 125.12. The 312.23 authority for selection and employment of a director shall be 312.24 vested in the center board. Notwithstanding the provisions of 312.25 section 125.12, subdivision 6a or 6b, no individual shall have a 312.26 right to employment as a director based on seniority or order of 312.27 employment by the center. The center board may employ and 312.28 discharge other necessary employees and may contract for other 312.29 services deemed necessary. 312.30 (e) The center board may provide an educational program for 312.31 secondary and adult vocational phases of instruction. The high 312.32 school phase of its educational programshallmust be offered as 312.33 a component of the comprehensive curriculum offered by each of 312.34 the participating school districts. Graduationshallmust be 312.35 from the student's resident high school district. Insofar as 312.36 applicable, sections 123.35 to 123.40, shall apply. 313.1 (f) The center board may prescribe rates of tuition for 313.2 attendance in its programs by adults and nonmember district 313.3 secondary students. 313.4 Sec. 94. Minnesota Statutes 1996, section 123.351, 313.5 subdivision 5, is amended to read: 313.6 Subd. 5. [FINANCING.] (a) Any center board established 313.7 pursuant to this section is a public corporation and agency and 313.8 may receive and disburse federal, state, and local funds made 313.9 available to it.NoA participating school district or member 313.10shallmust not have any additional individual liability for the 313.11 debts or obligations of the center except that assessment which 313.12 has been certified as its proportionate share in accordance with 313.13 subdivision 5, clause (b) and subdivision 4, clauses (a) and 313.14 (c). A member of the center board shall have such liability as 313.15 is applicable to a member of an independent school district 313.16 board. Any property, real or personal, acquired or owned by the 313.17 center board for its purposes shall be exempt from taxation by 313.18 the state or any of its political subdivisions. 313.19 (b) The center board may, in each year, for the purpose of 313.20 paying any administrative, planning, operating, or capital 313.21 expenses incurred or to be incurred, assess and certify to each 313.22 participating school district its proportionate share of any and 313.23 all expenses. This shareshallmust be based upon an equitable 313.24 distribution formula agreed upon by the participating 313.25 districts. Each participating district shall remit its 313.26 assessment to the center board within 30 days after receipt. 313.27 The assessments shall be paid within the maximum levy 313.28 limitations of each participating district. 313.29 Sec. 95. Minnesota Statutes 1996, section 123.351, 313.30 subdivision 8, is amended to read: 313.31 Subd. 8. [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 313.32 approval by majority vote of aschoolboard and of the center 313.33 board, an adjoiningschooldistrict may become a member in the 313.34 center and be governed by the provisions of this section and the 313.35 agreement in effect. 313.36 Any participating district may withdraw from the center and 314.1 from the agreement in effect by a majority vote of the full 314.2 board membership of the participatingschooldistrict desiring 314.3 withdrawal and upon compliance with provisions in the agreement 314.4 establishing the center. Upon receipt of the withdrawal 314.5 resolution reciting the necessary facts, the center boardshall314.6 must file a certified copy with the county auditors of the 314.7 counties affected. The withdrawal shall become effective at the 314.8 end of the next following school year but the withdrawal shall 314.9 not affect the continued liability of the withdrawing district 314.10 for bonded indebtedness it incurred prior to the effective 314.11 withdrawal date. 314.12 Sec. 96. Minnesota Statutes 1996, section 123.351, 314.13 subdivision 8a, is amended to read: 314.14 Subd. 8a. [DISSOLUTION.] The boards of each participating 314.15 district may agree to dissolve a center effective at the end of 314.16 any school year or at an earlier time as they may mutually 314.17 agree. A dissolutionshallmust be accomplished in accordance 314.18 with any applicable provisions of the agreement establishing the 314.19 center. Upon receipt of the dissolution resolutions from the 314.20 boards of the participating districts, the center board shall 314.21 file a certified copy with the county auditors of the counties 314.22 affected. The dissolutionshallmust not affect the continuing 314.23 liability of the previously participating districts for bonded 314.24 indebtedness incurred prior to the dissolution, or for other 314.25 continuing obligations, including reemployment insurance. 314.26 Sec. 97. Minnesota Statutes 1996, section 123.582, 314.27 subdivision 2, is amended to read: 314.28 Subd. 2. [PURPOSE OF SC.] The primary purposes of 314.29 designation as a SC shall be to perform planning on a regional 314.30 basis and to assist in meeting specific needs of clients in 314.31 participating governmental units which could be better provided 314.32 by a SC than by the members themselves. The SCshallmust 314.33 provide those programs and services which are determined, 314.34 pursuant to subdivision 7, to be priority needs of the 314.35 particular region andshallmust assist in meeting special needs 314.36 which arise from fundamental constraints upon individual members. 315.1 Sec. 98. Minnesota Statutes 1996, section 124.2725, 315.2 subdivision 15, is amended to read: 315.3 Subd. 15. [RETIREMENT AND SEVERANCE LEVY.] A cooperating 315.4 or combined district that levied under Minnesota Statutes 1996, 315.5 section 124.2725, subdivision 3, for taxes payable in 1995 may 315.6 levy for severance pay or early retirement incentives for 315.7 licensed and nonlicensed employees who retire early as a result 315.8 of the cooperation or combination. 315.9 Sec. 99. Minnesota Statutes 1996, section 124.511, is 315.10 amended to read: 315.11 124.511 [SURPLUS COUNTY SCHOOL TAX FUNDS; DISTRIBUTION.] 315.12 When, by reason of reorganization of districts, there is a 315.13 surplus in the county treasury to the credit of the county 315.14 school tax fund on account of an excessive tax levy 315.15heretoforealready made, and when there is no needtherefor,for 315.16 the surplus,shall be paid bythe county treasurer shall pay the 315.17 surplus to the reorganized district upon the order of the county 315.18 board. 315.19 Sec. 100. Minnesota Statutes 1996, section 124C.45, 315.20 subdivision 1, is amended to read: 315.21 Subdivision 1. [GOVERNANCE.] Aschooldistrict may 315.22 establish an area learning center either by itself or in 315.23 cooperation with other districts, a SC, an intermediate school 315.24 district, a local education and employment transitions 315.25 partnership, public and private secondary and post-secondary 315.26 institutions, public agencies, businesses, and foundations. 315.27 Except for a district located in a city of the first class, a 315.28 center must serve the geographic area of at least two districts. 315.29 Sec. 101. Minnesota Statutes 1997 Supplement, section 315.30 124C.45, subdivision 1a, is amended to read: 315.31 Subd. 1a. [RESERVE REVENUE.] Eachschooldistrict that is 315.32 a member of an area learning center must reserve revenue in an 315.33 amount equal to at least 90 percent of the district average 315.34 general education revenue less compensatory revenue unit times 315.35 the number of pupil units attending an area learning center 315.36 program under this section. The amount of reserved revenue 316.1 under this subdivision may only be spent on program costs 316.2 associated with the area learning center. Compensatory revenue 316.3 must be allocated according to section 124A.28, subdivision 1a. 316.4 Sec. 102. Minnesota Statutes 1996, section 124C.49, is 316.5 amended to read: 316.6 124C.49 [DESIGNATION AS CENTER.] 316.7 The commissionerof children, families, and learning, in 316.8 cooperation with the state board of education, shall establish a 316.9 process for state designation and approval of area learning 316.10 centers that meet the provisions of sections 124C.45 to 316.11 124C.48. Any process for designating and approving an area 316.12 learning center must emphasize the importance of having the area 316.13 learning center serve students who have dropped out of school, 316.14 are homeless, are eligible to receive free or reduced priced 316.15 lunch, have been suspended or expelled, have been declared 316.16 truant or are pregnant or parents. 316.17 Sec. 103. [REPEALER.] 316.18 Minnesota Statutes 1996, sections 122.532, subdivision 1; 316.19 and 122.541, subdivision 3, are repealed. 316.20 Sec. 104. [INSTRUCTION TO REVISOR.] 316.21 The revisor of statutes shall renumber each section of 316.22 Minnesota Statutes listed in column A with the number listed in 316.23 column B. The revisor shall also make necessary cross-reference 316.24 changes consistent with the renumbering. 316.25 Column A Column B 316.26 122.01 122A.01 316.27 122.02 122A.02 316.28 122.03 122A.03 316.29 122.21 122A.05 316.30 122.22, subd. 1 122A.06, subd. 1 316.31 subd. 2 subd. 2 316.32 subd. 3 subd. 3 316.33 subd. 4 subd. 4 316.34 subd. 5 subd. 5 316.35 subd. 6 subd. 6 316.36 subd. 7 subd. 7 317.1 subd. 7a subd. 8 317.2 subd. 8 subd. 9 317.3 subd. 9 subd. 10 317.4 subd. 11 subd. 11 317.5 subd. 13 subd. 12 317.6 subd. 14 subd. 13 317.7 subd. 18 subd. 14 317.8 subd. 20 subd. 15 317.9 subd. 21 subd. 16 317.10 122.23, subd. 1 122A.10, subd. 1 317.11 subd. 2 subd. 2 317.12 subd. 2a subd. 3 317.13 subd. 2b subd. 4 317.14 subd. 3 subd. 5 317.15 subd. 4 subd. 6 317.16 subd. 5 subd. 7 317.17 subd. 6 subd. 8 317.18 subd. 7 subd. 9 317.19 subd. 8 subd. 10 317.20 subd. 9 subd. 11 317.21 subd. 10 subd. 12 317.22 subd. 11 subd. 13 317.23 subd. 12 subd. 14 317.24 subd. 13 subd. 15 317.25 subd. 14 subd. 16 317.26 subd. 15 subd. 17 317.27 subd. 16 subd. 18 317.28 subd. 16c subd. 19 317.29 subd. 18 subd. 20 317.30 subd. 18a subd. 21 317.31 subd. 19 subd. 22 317.32 subd. 20 subd. 23 317.33 127.25 122A.11 317.34 122.535 122A.12 317.35 122.541, subd. 1 122A.14, subd. 1 317.36 subd. 2 subd. 2 318.1 subd. 4 subd. 3 318.2 subd. 5 subd. 4 318.3 subd. 6 subd. 5 318.4 subd. 7 subd. 6 318.5 122.895, subd. 1 122A.15, subd. 1 318.6 subd. 2 subd. 2 318.7 subd. 2a subd. 3 318.8 subd. 3 subd. 4 318.9 subd. 4 subd. 5 318.10 subd. 5 subd. 6 318.11 subd. 6 subd. 7 318.12 subd. 7 subd. 8 318.13 subd. 8 subd. 9 318.14 subd. 9 subd. 10 318.15 subd. 10 subd. 11 318.16 122.241 122A.17 318.17 122.242 122A.18 318.18 122.243 122A.19 318.19 122.244 122A.20 318.20 122.245, subd. 1 122A.21, subd. 1 318.21 subd. 2 subd. 2 318.22 subd. 3 subd. 4 318.23 124.2725, subd. 15 122A.21, subd. 3 318.24 122.246 122A.22 318.25 122.247, subd. 1 122.23, subd. 1 318.26 subd. 2 subd. 2 318.27 subd. 2a subd. 3 318.28 subd. 3 subd. 4 318.29 122.248 122A.24 318.30 122.25 122A.26 318.31 122.32 122A.30 318.32 122.34 122A.31 318.33 122.355 122A.32 318.34 122.41 122A.34 318.35 122.43 122A.35 318.36 122.44 122A.36 319.1 122.45, subd. 1 122A.37, subd. 1 319.2 subd. 2 subd. 2 319.3 subd. 3a subd. 3 319.4 122.46 122A.38 319.5 122.47 122A.39 319.6 122.48 122A.40 319.7 122.51 122A.41 319.8 122.531, subd. 1 122A.43, subd. 1 319.9 subd. 1a subd. 2 319.10 subd. 2 subd. 3 319.11 subd. 2a subd. 4 319.12 subd. 2b subd. 5 319.13 subd. 2c subd. 6 319.14 subd. 2d subd. 7 319.15 subd. 4 subd. 8 319.16 subd. 4a subd. 9 319.17 subd. 5a subd. 10 319.18 subd. 6 subd. 11 319.19 subd. 9 subd. 12 319.20 122.5311 122A.44 319.21 122.532, subd. 2 122A.45, subd. 1 319.22 subd. 3 subd. 2 319.23 subd. 3a subd. 3 319.24 subd. 4 subd. 4 319.25 122.533 122A.46 319.26 124.511 122A.47 319.27 121.155 122A.48 319.28 122.539 122A.49 319.29 122.91, subd. 1 122A.50, subd. 1 319.30 subd. 2 subd. 2 319.31 subd. 2a subd. 3 319.32 subd. 3 subd. 4 319.33 subd. 3a subd. 5 319.34 subd. 4 subd. 6 319.35 subd. 6 subd. 7 319.36 122.92 122A.51 320.1 122.93, subd. 1 122A.52, subd. 1 320.2 subd. 2 subd. 2 320.3 subd. 3 subd. 3 320.4 subd. 4 subd. 4 320.5 subd. 5 subd. 5 320.6 subd. 6 subd. 6 320.7 subd. 8 subd. 7 320.8 122.94, subd. 1 122A.53, subd. 1 320.9 subd. 4 subd. 2 320.10 subd. 5 subd. 3 320.11 122.95, subd. 1 122A.54, subd. 1 320.12 subd. 1a subd. 2 320.13 subd. 2 subd. 3 320.14 subd. 3 subd. 4 320.15 subd. 4 subd. 5 320.16 123.582 122A.56 320.17 123.351, subd. 1 122A.57, subd. 1 320.18 subd. 2 subd. 2 320.19 subd. 3 subd. 3 320.20 subd. 4 subd. 4 320.21 subd. 5 subd. 5 320.22 subd. 6 subd. 6 320.23 subd. 7 subd. 7 320.24 subd. 8 subd. 8 320.25 subd. 8a subd. 9 320.26 subd. 9 subd. 10 320.27 subd. 10 subd. 11 320.28 123.35, subd. 19b 122A.58, subd. 1 320.29 subd. 21 subd. 2 320.30 122.98 122A.59 320.31 124.193 122A.60 320.32 124C.45, subd. 1 122A.65, subd. 1 320.33 subd. 1a subd. 2 320.34 subd. 2 subd. 3 320.35 subd. 3 subd. 4 320.36 124C.46 122A.66 321.1 124C.47 122A.67 321.2 124C.48 122A.68 321.3 124C.49 122A.69 321.4 ARTICLE 6 321.5 CHAPTER 123A 321.6 POWERS AND DUTIES OF SCHOOL DISTRICTS 321.7 Section 1. Minnesota Statutes 1996, section 120.59, is 321.8 amended to read: 321.9 120.59 [PURPOSE OF FLEXIBLE LEARNING YEAR PROGRAMS.] 321.10The purpose ofSections 120.59 to 120.67is toauthorize 321.11 districts to evaluate, plan and employ the use of flexible 321.12 learning year programs. It is anticipated that the open 321.13 selection of the type of flexible learning year operation from a 321.14 variety of alternatives will allow each districtwhich seeks321.15 seeking to utilize this concept to suitably fulfill the 321.16 educational needs of its pupils. These alternativesshallmust 321.17 include, but not be limited to, various 45-15 plans, 321.18 four-quarter plans, quinmester plans, extended learning year 321.19 plans, flexible all-year plans, and four-day week plans. 321.20 Sec. 2. Minnesota Statutes 1996, section 120.60, is 321.21 amended to read: 321.22 120.60 [DEFINITION OF FLEXIBLE LEARNING YEAR.] 321.23 "Flexible learning year program" means any district plan 321.24 approved by the state boardof education whichthat utilizes 321.25 buildings and facilities during the entire yearand/or whichor 321.26 that provides forms of optional scheduling of pupils and 321.27 personnel during the learning year in elementary and secondary 321.28 schools or residential facilities for children with a disability. 321.29 Sec. 3. Minnesota Statutes 1996, section 120.61, is 321.30 amended to read: 321.31 120.61 [ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.] 321.32 The board of any district, with the approval of the state 321.33 boardof education, may establish and operate a flexible 321.34 learning year program in one or more of the day or residential 321.35 facilities for children with a disability within the district. 321.36 Sec. 4. Minnesota Statutes 1996, section 120.62, is 322.1 amended to read: 322.2 120.62 [DIVISION OF CHILDREN INTO GROUPS.] 322.3 The board of any district operating a flexible learning 322.4 year program in one or more of the facilities within the 322.5 districtshallmust divide the students of each selected 322.6 facility into as many groups as necessary to accommodate this 322.7 program. Students of the same familyshallmust be placed in 322.8 the same group unless one or more of these students is enrolled 322.9 in a special education class or unless the parent or guardian of 322.10 these students requests that the students be placed in different 322.11 groups. No boardshallmay discriminate on the basis of race, 322.12 color, creed, religion, marital status, status with regard to 322.13 public assistance, sex, or national origin when assigning pupils 322.14 to attendance groups pursuant to this section. 322.15 Sec. 5. Minnesota Statutes 1996, section 120.63, is 322.16 amended to read: 322.17 120.63 [PUBLIC HEARING BEFORE IMPLEMENTATION.] 322.18Prior toBefore implementing a flexible learning year 322.19 program in any facility of the district, the boardshallmust 322.20 negotiate with the teachers, principals, assistant principals, 322.21 supervisory personnel and employees to the extent required by 322.22 the public employment labor relations act, andshallmust 322.23 consult with the parents of pupils who would be affected by the 322.24 change, and with the community at large. These proceduresshall322.25 must include at least three informational meetings for which the 322.26 board has given published notice to the teachers and employees 322.27 and to the parents of pupils affected. 322.28 Sec. 6. Minnesota Statutes 1996, section 120.64, is 322.29 amended to read: 322.30 120.64 [ASSIGNMENT OF TEACHERS.] 322.31 Subdivision 1. [IMPLEMENTING PROGRAM.] In districts where 322.32 a flexible learning year program is implemented in fewer than 322.33 all of the facilities maintained by the district, the board of 322.34 the districtshallmust make every reasonable effort to assign 322.35 qualified teachers who prefer a traditional schedule to 322.36 facilities of the same level retaining a traditional schedule. 323.1 Subd. 2. [TEACHER SCHEDULE.] A full-time teacher currently 323.2 employed by a districtwhichthat converts to a flexible 323.3 learning year programshallmay not, without the teacher's 323.4 written consent, be required to teach under this program (1) 323.5 more or less than the number of scheduled days or their 323.6 equivalent the facilities of the district were maintained during 323.7 the year preceding implementation of the flexible learning year 323.8 program; (2) in a period of the calendar year substantially 323.9 different from the period in which the teacher taught during the 323.10 year preceding implementation of the flexible learning year 323.11 program. 323.12 Subd. 3. [CONTRACT RIGHTS; PROGRAM ADOPTION.] In no event 323.13shallmay a teacher's continuing contract rights to a position 323.14 held the year preceding implementation of a flexible learning 323.15 year program or teaching experience earned during a probationary 323.16 period the year preceding implementation be lost or impaired 323.17 upon adoption of a flexible learning year program. If the year 323.18 of teaching preceding implementation was the end of a 323.19 probationary period, the continuing contract right to a full 323.20 year's contract which normally would be acquired for the next 323.21 succeeding learning yearshallmust be acquired in the year of 323.22 adoption of the flexible program. 323.23 Subd. 4. [CONTRACT FOR LEARNING YEAR.] Any district 323.24 operating a flexible learning year programshallmust enter into 323.25 one contract governing the entire learning year with each 323.26 teacher employed in a flexible program. If individual teachers 323.27 contract to teach less than a period of 175 days during a 323.28 learning year, each 175 days of employment accrued during any 323.29 five-year period after the adoption of a flexible learning year 323.30 programshallmust be deemed consecutive andshall323.31constituteconstitutes a full year's employment for purposes of 323.32 establishing and retaining continuing contract rights to a full 323.33 learning year position pursuant to sections 125.12, subdivisions 323.34 3 and 4, and 125.17, subdivisions 2 and 3. A teacher who has 323.35 not been discharged or advised of a refusal to renew the 323.36 teacher's contract by the applicable date, as specified in 324.1 section 125.12 or 125.17, in the year in which the teacher will 324.2 complete the requisite number of days for securing a continuing 324.3 contractshallmust have a continuing full learning year 324.4 contract with the district. 324.5 Subd. 5. [CONTRACT RIGHTS; TERMINATION OF PROGRAM.] 324.6 Continuing contract rights established pursuant to this 324.7 sectionshallmust not be impaired or lost by the termination of 324.8 a flexible learning year program. 324.9 Sec. 7. Minnesota Statutes 1996, section 120.66, is 324.10 amended to read: 324.11 120.66 [POWERS AND DUTIES OF THE STATE BOARD.] 324.12 Subdivision 1. [POWERS AND DUTIES.] The state boardof324.13education shallmust: 324.14 (1) promulgate rules necessary to the operation of sections 324.15 120.59 to 120.67; 324.16 (2) cooperate with and provide supervision of flexible 324.17 learning year programs to determine compliance with the 324.18 provisions of sections 120.59 to 120.67, the state board 324.19 standards and qualifications, and the proposed program as 324.20 submitted and approved; 324.21 (3) provide any necessary adjustments of (a) attendance and 324.22 membership computations and (b) the dates and percentages of 324.23 apportionment of state aids; and 324.24 (4) consistent with the definition of "average daily 324.25 membership" in section 124.17, subdivision 2, furnish the board 324.26 of a district implementing a flexible learning year program with 324.27 a formula for computing average daily membership. This formula 324.28shallmust be computed so that tax levies to be made by the 324.29 district, state aids to be received by the district, and any and 324.30 all other formulas based upon average daily membership are not 324.31 affected solely as a result of adopting this plan of instruction. 324.32 Subd. 2. [LIMITATIONS.] Sections 120.59 to 120.67shall324.33 may not be construed to authorize the state board to require the 324.34 establishment of a flexible learning year program in any 324.35 district in which the board has not voted to establish, 324.36 maintain, and operate such a program. 325.1 Sec. 8. Minnesota Statutes 1996, section 121.585, 325.2 subdivision 2, is amended to read: 325.3 Subd. 2. [STATE BOARD DESIGNATION.] An area learning 325.4 center designated by the state must be a site. To be 325.5 designated, a district or center must demonstrate to the 325.6 commissionerof children, families, and learningthat it will: 325.7 (1) provide a program of instruction that permits pupils to 325.8 receive instruction throughout the entire year; and 325.9 (2) maintain a record system that, for purposes of section 325.10 124.17, permits identification of membership attributable to 325.11 pupils participating in the program. The record system and 325.12 identification must ensure that the program will not have the 325.13 effect of increasing the total number of pupil units 325.14 attributable to an individual pupil as a result of a learning 325.15 year program. 325.16 Sec. 9. Minnesota Statutes 1996, section 121.585, 325.17 subdivision 6, is amended to read: 325.18 Subd. 6. [CONTRACTS.] A district may contract with a 325.19 licensed employee to provide services in a learning year program 325.20 that are in addition to the services provided according to the 325.21 master contract of employment for teachers or an equivalent 325.22 contract for licensed employees who are not teachers. These 325.23 additional services and compensation, if any, for the services 325.24shallmust not become a part of the employee's continuing 325.25 contract rights under section 125.12 or 125.17. 325.26 Sec. 10. Minnesota Statutes 1996, section 121.585, 325.27 subdivision 7, is amended to read: 325.28 Subd. 7. [REVENUE COMPUTATION AND REPORTING.] Aid and levy 325.29 revenue computationsshallmust be based on the total number of 325.30 hours of education programs for pupils in average daily 325.31 membership for each fiscal year. For purposes of section 325.32 124.17, average daily membership shall be computed by dividing 325.33 the total number of hours of participation for the fiscal year 325.34 by the minimum number of hours for a year determined for the 325.35 appropriate grade level. Hours of participation that occur 325.36 after the close of the regular instructional year and before 326.1 July 1shallmust be attributed to the following fiscal year. 326.2 Thirty hours may be used for teacher workshops, staff 326.3 development, or parent-teacher conferences. As part of each 326.4 pilot program, the departmentof children, families, and326.5learningand each district must report and evaluate the changes 326.6 needed to adjust the dates of the fiscal year for aid and levy 326.7 computation and fiscal year reporting. For revenue computation 326.8 purposes, the learning year program shall generate revenue based 326.9 on the formulas for the fiscal year in which the services are 326.10 provided. 326.11 State aid and levy revenue computation for the learning 326.12 year programs begins July 1, 1988, for fiscal year 1989. 326.13 Sec. 11. Minnesota Statutes 1996, section 121.904, 326.14 subdivision 1, is amended to read: 326.15 Subdivision 1. [SCOPE.]SchoolDistrict revenuesshall326.16 must be recognized and reported on the district books of account 326.17 in accordance with this section. 326.18 Sec. 12. Minnesota Statutes 1996, section 121.904, 326.19 subdivision 2, is amended to read: 326.20 Subd. 2. [APPLICABILITY TO PERIOD AND FUND.] Except as 326.21 provided in this section, revenuesshallmust be recorded in a 326.22 manner which clearly indicates that they are applicable to a 326.23 specific accounting period and fund. 326.24 Sec. 13. Minnesota Statutes 1996, section 121.904, 326.25 subdivision 3, is amended to read: 326.26 Subd. 3. [RECEIVABLE.] Receivablesshallmust be recorded 326.27 in a manner which clearly reflects the amounts of money due to a 326.28 particular fund from public and private sources at the date of 326.29 each accounting statement. 326.30 Sec. 14. Minnesota Statutes 1997 Supplement, section 326.31 121.904, subdivision 4a, is amended to read: 326.32 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 326.33 settlement revenue" means the current, delinquent, and 326.34 manufactured home property tax receipts collected by the county 326.35 and distributed to the school district, including distributions 326.36 made pursuant to section 279.37, subdivision 7, and excluding 327.1 the amount levied pursuant to section 124.914, subdivision 1. 327.2 (b) In June of each year, the school districtshallmust 327.3 recognize as revenue, in the fund for which the levy was made, 327.4 the lesser of: 327.5 (1) the May, June, and July school district tax settlement 327.6 revenue received in that calendar year; or 327.7 (2) the sum of the state aids and credits enumerated in 327.8 section 124.155, subdivision 2, which are for the fiscal year 327.9 payable in that fiscal year plus an amount equal to the levy 327.10 recognized as revenue in June of the prior year plus 31 percent 327.11 of the amount of the levy certified in the prior calendar year 327.12 according to section 124A.03, subdivision 2; or 327.13 (3)(i) 7.0 percent of the lesser of the amount of the 327.14 general education levy certified in the prior calendar year 327.15 according to section 124A.23, subdivision 2, or the difference 327.16 between the amount of the total general fund levy certified in 327.17 the prior calendar year and the sum of the amounts certified in 327.18 the prior calendar year according to sections 124A.03, 327.19 subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 327.20 paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 327.21 paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 327.22 (ii) 31 percent of the referendum levy certified in the 327.23 prior calendar year according to section 124A.03, subdivision 2; 327.24 plus 327.25 (iii) the entire amount of the levy certified in the prior 327.26 calendar year according to sections 124.315, subdivision 4; 327.27 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 327.28 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 327.29 124.918, subdivision 6. 327.30 (c) In July of each year, theschooldistrict shall 327.31 recognize as revenue that portion of the school district tax 327.32 settlement revenue received in that calendar year and not 327.33 recognized as revenue for the previous fiscal year pursuant to 327.34 clause (b). 327.35 (d) All other school district tax settlement revenueshall327.36 must be recognized as revenue in the fiscal year of the 328.1 settlement. Portions of the school district levy assumed by the 328.2 state, including prior year adjustments and the amount to fund 328.3 the school portion of the reimbursement made pursuant to section 328.4 273.425, shall be recognized as revenue in the fiscal year 328.5 beginning in the calendar year for which the levy is payable. 328.6 Sec. 15. Minnesota Statutes 1996, section 121.904, 328.7 subdivision 4c, is amended to read: 328.8 Subd. 4c. [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 328.9 appropriated under section 16A.152, subdivision 2, must be used 328.10 to reduce the levy recognition percent specified in subdivision 328.11 4a, clauses (b)(2) and (b)(3), for taxes payable in the same 328.12 calendar year the appropriation is made. 328.13 (b) The levy recognition percent shall equal the result of 328.14 the following computation: the current levy recognition 328.15 percent, times the ratio of 328.16 (1) the statewide total amount of levy recognized in June 328.17 of the year in which the taxes are payable pursuant to 328.18 subdivision 4a, clause (b), excluding those levies that are 328.19 shifted for revenue recognition but are not included in the 328.20 computation of the adjustment to aids under section 124.155, 328.21 subdivision 1, reduced by the difference between the amount of 328.22 money appropriated under section 16A.152, subdivision 2, and the 328.23 amount required for the adjustment payment under clause (d), to 328.24 (2) the statewide total amount of the levy recognized in 328.25 June of the year in which the taxes are payable pursuant to 328.26 subdivision 4a, clause (b), excluding those levies that are 328.27 shifted for revenue recognition but are not included in the 328.28 computation of the adjustment to aids under section 124.155, 328.29 subdivision 1. 328.30 The resultshallmust be rounded up to the nearest 328.31 one-tenth of a percent. However, in no case shall the levy 328.32 recognition percent be reduced below zero or increased above the 328.33 current levy recognition percent. 328.34 (c) The commissioner of finance must certify to the 328.35 commissioner of children, families, and learning the amount 328.36 available to reduce the levy recognition percent computed under 329.1 this subdivision by January 5 of each year. The commissioner of 329.2 children, families, and learning must notifyschooldistricts of 329.3 a change in the levy recognition percent by January 15 of the 329.4 same month. 329.5 (d) When the levy recognition percent is increased or 329.6 decreased as provided in this subdivision, a special aid 329.7 adjustment shall be made to eachschooldistrict with an 329.8 operating referendum levy: 329.9 (i) When the levy recognition percent is increased from the 329.10 prior fiscal year, the commissioner of children, families, and 329.11 learning shall calculate the difference between (1) the amount 329.12 of the levy under section 124A.03, that is recognized as revenue 329.13 for the current fiscal year according to subdivision 4a; and (2) 329.14 the amount of the levy, under section 124A.03, that would have 329.15 been recognized as revenue for the current fiscal year had the 329.16 percentage according to subdivision 4a, not been increased. The 329.17 commissioner shall reduce other aids due the district by the 329.18 amount of the difference. This aid reduction shall be in 329.19 addition to the aid reduction required because of the increase 329.20 pursuant to this subdivision of the levy recognition percent. 329.21 (ii) When the levy recognition percent is reduced from the 329.22 prior fiscal year, a special adjustment paymentshallmust be 329.23 made to eachschooldistrict with an operating referendum levy 329.24 that received an aid reduction when the levy recognition percent 329.25 was last increased. The special adjustment paymentshallmust 329.26 be in addition to the additional payments required because of 329.27 the reduction pursuant to this subdivision of the levy 329.28 recognition percent. The amount of the special adjustment 329.29 payment shall be computed by the commissioner of children, 329.30 families, and learning such that any remaining portion of the 329.31 aid reduction these districts received that has not been repaid 329.32 is repaid on a proportionate basis as the levy recognition 329.33 percent is reduced from 50 percent to 31 percent. The special 329.34 adjustment payment must be included in the state aid payments to 329.35schooldistricts according to the schedule specified in section 329.36 124.195, subdivision 3. 330.1 (e) The commissioner of finance shall transfer from the 330.2 general fund to the education aids appropriations specified by 330.3 the commissioner of children, families, and learning, the 330.4 amounts needed to finance the additional payments required 330.5 because of the reduction pursuant to this subdivision of the 330.6 levy recognition percent. Payments to aschooldistrict of 330.7 additional state aids resulting from a reduction in the levy 330.8 recognition percent must be included in the cash metering of 330.9 payments made according to section 124.195 after January 15, and 330.10 must be paid in a manner consistent with the percent specified 330.11 in that section. 330.12 Sec. 16. Minnesota Statutes 1996, section 121.904, 330.13 subdivision 13, is amended to read: 330.14 Subd. 13. [DEVIATIONS FOOTNOTED.] Deviations from the 330.15 principles set forth in this sectionshallmust be evaluated and 330.16 explained in footnotes to audited financial statements. 330.17 Sec. 17. Minnesota Statutes 1996, section 121.906, is 330.18 amended to read: 330.19 121.906 [EXPENDITURES; REPORTING.] 330.20 Subdivision 1. [RECOGNITION.]SchoolDistrict expenditures 330.21shallmust be recognized and reported on the district books of 330.22 account in accordance with this section. 330.23There shall beFiscal year-end recognition of expenditures 330.24 and the related offsetting liabilities must be recorded in each 330.25 fund in accordance with the uniform financial accounting and 330.26 reporting standards for Minnesota school districts. 330.27 Encumbrances outstanding at the end of the fiscal year do not 330.28 constitute expenditures or liabilities. 330.29 Deviations from the principles set forth in this 330.30 subdivisionshallmust be evaluated and explained in footnotes 330.31 to audited financial statements. 330.32 Subd. 2. [ACCOUNTING.] Expenditures for any legal purpose 330.33 of theschooldistrict not accounted for elsewhereshallmust be 330.34 accounted for in the general fund. 330.35 Sec. 18. Minnesota Statutes 1996, section 121.908, is 330.36 amended to read: 331.1 121.908 [ACCOUNTING, BUDGETING AND REPORTING REQUIREMENT.] 331.2 Subdivision 1. [UNIFORM FINANCIAL ACCOUNTING AND REPORTING 331.3 STANDARDS.] Each Minnesota school districtshallmust adopt the 331.4 uniform financial accounting and reporting standards for 331.5 Minnesota school districts provided for in guidelines adopted by 331.6 the departmentof children, families, and learning. 331.7 Subd. 2. [AUDITED FINANCIAL STATEMENT.] Each district 331.8shallmust submit to the commissioner by August 15 of each year 331.9 an unaudited financial statement for the preceding fiscal year. 331.10 This statementshallmust be submitted on forms prescribed by 331.11 the commissioner. 331.12 Subd. 3. [STATEMENT FOR COMPARISON AND CORRECTION.] By 331.13 December 31 of the calendar year of the submission of the 331.14 unaudited financial statement, the districtshallmust provide 331.15 to the commissioner and state auditor an audited financial 331.16 statement prepared in a form which will allow comparison with 331.17 and correction of material differences in the unaudited 331.18 statement. The audited financial statement must also provide a 331.19 statement of assurance pertaining to uniform financial 331.20 accounting and reporting standards compliance. 331.21 Subd. 3a. [BUDGET APPROVAL.] Prior to July 1 of each year, 331.22 theschoolboard of each districtshallmust approve and adopt 331.23 its revenue and expenditure budgets for the next school year. 331.24 The budget document so adoptedshallmust be considered an 331.25 expenditure-authorizing or appropriations document. No funds 331.26 shall be expended by any board or district for any purpose in 331.27 any school year prior to the adoption of the budget document 331.28 which authorizes that expenditure, or prior to an amendment to 331.29 the budget document by the board to authorize the expenditure. 331.30 Expenditures of funds in violation of this subdivision shall be 331.31 considered unlawful expenditures. 331.32 Subd. 5. [JOINT POWERS AGREEMENTS; SC'S, EDUCATION 331.33 DISTRICTS.] All governmental units formed by joint powers 331.34 agreements entered into by districts pursuant to section 120.17, 331.35 120.1701, 123.351, 471.59, or any other law and all service 331.36 cooperatives and education districtsshall beare subject to the 332.1 provisions of this section. 332.2 Subd. 6. [BENEFITS.] Aschooldistrict providing early 332.3 retirement incentive payments under section 125.611, severance 332.4 pay under section 465.72, or health insurance benefits to 332.5 retired employees under section 471.61, must account for the 332.6 payments according to uniform financial accounting and reporting 332.7 standards. 332.8 Sec. 19. Minnesota Statutes 1996, section 121.911, is 332.9 amended to read: 332.10 121.911 [CASH FLOW; SCHOOL DISTRICT REVENUES; BORROWING FOR 332.11 CURRENT OPERATING COSTS; CAPITAL EXPENDITURE DEFICITS.] 332.12 Subdivision 1. [STATE AIDS PAYMENT.] The commissioner of 332.13 finance shall remit all payments of state aids toschool332.14 districts in conformance with the dates provided by law or, when 332.15 not so provided, with a schedule of aid payments to be 332.16 established by the commissioner of children, families, and 332.17 learning in consultation with other affected state agencies. 332.18 Subd. 2. [TAXES.] The auditors or finance officers of 332.19 Minnesota counties shall remit all payments of taxes to 332.20 theschooldistricts in conformance with the provisions of 332.21 section 276.11.SchoolDistricts which have need for tax 332.22 remittance advances may secure them from the counties by making 332.23 formal requests in conformance with section 276.11. 332.24 Subd. 3. [TAX AND AID ANTICIPATION CERTIFICATES.] 332.25 Minnesota school districts may issue tax and aid anticipation 332.26 certificates in conformance with the provisions of sections 332.27 124.71 to 124.76, with the additional provision that the 332.28 proceeds of such borrowing or any other method of borrowing 332.29 shall be recorded as liabilities of funds for which the taxes 332.30 were levied, or for which the aids are receivable. Nothing in 332.31 this subdivisionshall provideprovides authority for borrowing 332.32 against the tax levies and aids of oneschooldistrict fund for 332.33 the purpose of increasing the available cash balance of another 332.34 fund. 332.35 Subd. 4. [BORROWING FOR OUTSTANDING BONDS.] Unless 332.36 otherwise provided by law,noa districtshallmust not, for the 333.1 purpose of increasing the available cash balance of another 333.2 fund, borrow or transfer funds from the building construction 333.3 fund, debt redemption fund, trust and agency fund, or from any 333.4 sinking fund for outstanding bonds issued for any purpose. 333.5 However, if the contemplated use for which funds were originally 333.6 placed in the building construction fund or a sinking fund is 333.7 afterwards abandoned or if a balance remains after the use is 333.8 accomplished, a district may devote these funds as provided in 333.9 section 475.65. For the purpose of insuring fund integrity, on 333.10 determining that a district is in violation of this subdivision 333.11 or section 121.904, the commissioner shall require that such 333.12 district maintain separate bank accounts for building 333.13 construction funds, debt redemption funds, trust and agency 333.14 funds, and sinking funds for outstanding bonds. Nothing in this 333.15 subdivision shall be construed to prohibit the use of common 333.16 bank accounts for other funds unless prohibited by law. 333.17 Subd. 5. [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 333.18 the commissionerof children, families, and learning, a district 333.19 may incur a deficit in the reserve for operating capital account 333.20 for a period not to exceed three years to provide money for 333.21 capital projects. The commissioner shall approve a description 333.22 of the project and a financial plan to recover the deficitshall333.23be approved by the commissionerprior to the initiation of the 333.24 project. 333.25 Sec. 20. Minnesota Statutes 1997 Supplement, section 333.26 121.912, subdivision 1, is amended to read: 333.27 Subdivision 1. [LIMITATIONS.] Except as provided in this 333.28 subdivision, sections 121.9121, 123.36, 475.61, and 475.65, a 333.29schooldistrict may not permanently transfer money from (1) an 333.30 operating fund to a nonoperating fund; (2) a nonoperating fund 333.31 to another nonoperating fund; or (3) a nonoperating fund to an 333.32 operating fund. Permanent transfers may be made from any fund 333.33 to any other fund to correct for prior fiscal years' errors 333.34 discovered after the books have been closed for that year. 333.35 Permanent transfers may be made from the general fund to any 333.36 other operating funds according to section 123.7045 or if the 334.1 resources of the other fund are not adequate to finance approved 334.2 expenditures from that other fund. Permanent transfers may also 334.3 be made from the general fund to eliminate deficits in another 334.4 fund when that other fund is being discontinued. When a 334.5 district discontinues operation of a district-owned bus fleet or 334.6 a substantial portion of a fleet, the balance shall cancel to 334.7 the district's general fund. 334.8 Sec. 21. Minnesota Statutes 1996, section 121.912, 334.9 subdivision 1a, is amended to read: 334.10 Subd. 1a. [TECHNICAL COLLEGES.] Moneyshallmust not be 334.11 transferred from the post-secondary general fund to any other 334.12 operating or nonoperating fund. 334.13 Sec. 22. Minnesota Statutes 1996, section 121.912, 334.14 subdivision 1b, is amended to read: 334.15 Subd. 1b. [TRA AND FICA TRANSFER.] (a) Notwithstanding 334.16 subdivision 1, a district may transfer money from the general 334.17 fund to the community service fund for the employer 334.18 contributions for teacher retirement and FICA for employees who 334.19 are members of a teacher retirement association and who are paid 334.20 from the community service fund. 334.21 (b) A districtshallmust not transfer money under 334.22 paragraph (a) for employees who are paid with money other than 334.23 normal operating funds, as defined in section 354.05, 334.24 subdivision 27. 334.25 Sec. 23. Minnesota Statutes 1996, section 121.912, 334.26 subdivision 2, is amended to read: 334.27 Subd. 2. [DEFINITION.] As used in this section, "operating 334.28 fund" and "nonoperating fund"shallhave the meanings specified 334.29 in the uniform financial accounting and reporting standards for 334.30 Minnesota school districts. Any transfer for a period in excess 334.31 of one year shall be deemed to be a permanent transfer. 334.32 Sec. 24. Minnesota Statutes 1996, section 121.912, 334.33 subdivision 3, is amended to read: 334.34 Subd. 3. [DEFICITS; EXCEPTION.] For the purposes of this 334.35 section, a permanent transfer includes creating a deficit in a 334.36 nonoperating fund for a period past the end of the current 335.1 fiscal year which is covered by moneys in an operating fund. 335.2 However, a deficit in the capital expenditure fund pursuant to 335.3 section 121.911, subdivision 5,shalldoes not constitute a 335.4 permanent transfer. 335.5 Sec. 25. Minnesota Statutes 1996, section 121.912, 335.6 subdivision 5, is amended to read: 335.7 Subd. 5. [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 335.8schooldistrict may maintain in a designated for certain 335.9 severance pay account not more than 50 percent of the amount 335.10 necessary to meet the obligations for the portion of severance 335.11 pay that constitutes compensation for accumulated sick leave to 335.12 be used for payment of premiums for group insurance provided for 335.13 former employees by the district. The amount necessaryshall335.14 must be calculated according to standards established by the 335.15 advisory council on uniform financial accounting and reporting 335.16 standards. 335.17 Sec. 26. Minnesota Statutes 1996, section 121.912, 335.18 subdivision 6, is amended to read: 335.19 Subd. 6. [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] A 335.20schooldistrict that has reorganized according to section 335.21 122.22, 122.23, or sections 122.241 to 122.248, or has conducted 335.22 a successful referendum on the question of combination under 335.23 section 122.243, subdivision 2, or consolidation under section 335.24 122.23, subdivision 13, or has been assigned an identification 335.25 number by the commissioner under section 122.23, subdivision 14, 335.26 may make permanent transfers between any of the funds in the 335.27 newly created or enlarged district with the exception of the 335.28 debt redemption fund, food service fund, and health and safety 335.29 account of the capital expenditure fund. Fund transfers under 335.30 this section may be made for up to one year prior to the 335.31 effective date of combination or consolidation and during the 335.32 year following the effective date of reorganization. 335.33 Sec. 27. Minnesota Statutes 1996, section 121.9121, 335.34 subdivision 2, is amended to read: 335.35 Subd. 2. [APPLICATION.] A board requesting authority to 335.36 transfer moneyshallmust apply to the commissioner and provide 336.1 information requested. The applicationshallmust indicate the 336.2 law or rule prohibiting the desired transfer.It shallThe 336.3 application must be signed by the superintendent and approved by 336.4 the school board. 336.5 Sec. 28. Minnesota Statutes 1996, section 121.9121, 336.6 subdivision 4, is amended to read: 336.7 Subd. 4. [APPROVAL STANDARD.] The commissioner may approve 336.8 a request only when an event has occurred in a district that 336.9 could not have been foreseen by the district. The eventshall336.10 must relate directly to the fund or account involved and to the 336.11 amount to be transferred. 336.12 Sec. 29. Minnesota Statutes 1996, section 121.914, 336.13 subdivision 2, is amended to read: 336.14 Subd. 2. [STATUTORY OPERATING DEBT.] If the amount of the 336.15 operating debt is more than 2-1/2 percent of the most recent 336.16 fiscal year's expenditure amount for the funds considered under 336.17 subdivision 1, the net negative undesignated fund balanceshall336.18beis defined as "statutory operating debt" for the purposes of 336.19 this section and sections 121.917 and 124.914, subdivision 1. 336.20 Sec. 30. Minnesota Statutes 1996, section 121.914, 336.21 subdivision 3, is amended to read: 336.22 Subd. 3. [DEBT VERIFICATION.] The commissioner shall 336.23 establish a uniform auditing or other verification procedure for 336.24schooldistricts to determine whether a statutory operating debt 336.25 exists in any Minnesota school district as of June 30, 1977. 336.26 This procedureshall alsomust identify all interfund transfers 336.27 made during fiscal year 1977 from a fund included in computing 336.28 statutory operating debt to a fund not included in computing 336.29 statutory operating debt. The standards for this uniform 336.30 auditing or verification procedureshallmust be promulgated by 336.31 the state board pursuant to chapter 14. If aschooldistrict 336.32 applies to the commissioner for a statutory operating debt 336.33 verification or if the unaudited financial statement for the 336.34 school year ending June 30, 1977 reveals that a statutory 336.35 operating debt might exist, the commissioner shall require a 336.36 verification of the amount of the statutory operating debt which 337.1 actually does exist. 337.2 Sec. 31. Minnesota Statutes 1996, section 121.914, 337.3 subdivision 4, is amended to read: 337.4 Subd. 4. [DEBT ELIMINATION.] If an audit or other 337.5 verification procedure conducted pursuant to subdivision 3 337.6 determines that a statutory operating debt exists, a 337.7 districtshallmust follow the procedures set forth in section 337.8 124.914, subdivision 1, to eliminate this statutory operating 337.9 debt. 337.10 Sec. 32. Minnesota Statutes 1996, section 121.914, 337.11 subdivision 5, is amended to read: 337.12 Subd. 5. [CERTIFICATION OF DEBT.] The commissionerof337.13children, families, and learningshall certify the amount of 337.14 statutory operating debt for eachschooldistrict. Prior to 337.15 June 30, 1979, the commissioner may, on the basis of corrected 337.16 figures, adjust the total amount of statutory operating debt 337.17 certified for any district. 337.18 Sec. 33. Minnesota Statutes 1996, section 121.914, 337.19 subdivision 6, is amended to read: 337.20 Subd. 6. [REPORT.] On January 15, 1998, the commissioner 337.21of children, families, and learningshall report to the 337.22 legislature on the districts for which the levy allowable under 337.23 section 124.914, subdivision 1, has been insufficient to 337.24 eliminate the statutory operating debt of the district, 337.25 determined as of June 30, 1977. 337.26 Sec. 34. Minnesota Statutes 1996, section 121.914, 337.27 subdivision 7, is amended to read: 337.28 Subd. 7. [APPLICABILITY.] This section and the provisions 337.29 of section 124.914, subdivision 1,shall beare applicable only 337.30 to common, independent, and special school districts and 337.31 districts formed pursuant to Laws 1967, chapter 822, as amended, 337.32 and Laws 1969, chapters 775 and 1060, as amended. This section 337.33 and the provisions of section 124.914, subdivision 1,shalldo 337.34 not apply to independent school district No. 625. 337.35 Sec. 35. Minnesota Statutes 1996, section 121.914, 337.36 subdivision 8, is amended to read: 338.1 Subd. 8. [PLAN DISCLOSURE.] Any district eligible to 338.2 receive any amounts pursuant to section 124.914, subdivision 338.3 1,shallmust disclose its statutory operating debt retirement 338.4 plan by footnote to the audited financial statement. 338.5 Sec. 36. Minnesota Statutes 1996, section 121.917, is 338.6 amended to read: 338.7 121.917 [EXPENDITURE LIMITATIONS.] 338.8 Subdivision 1. [REDUCE STATUTORY OPERATING DEBT.] (a) 338.9 Beginning in fiscal year 1978 and in each year thereafter, a 338.10 district which had statutory operating debt on June 30, 1977 338.11 pursuant to section 121.914shallmust limit its expenditures in 338.12 each fiscal year so that the amount of its statutory operating 338.13 debt calculated at the end of that fiscal year is not greater 338.14 than the amount of the district's statutory operating debt as of 338.15 June 30, 1977, as certified and adjusted by the commissioner, 338.16 increased by an amount equal to 2-1/2 percent of that district's 338.17 operating expenditures for the fiscal year for which the 338.18 statutory operating debt calculation is being made. 338.19 (b) When a district is no longer required to levy pursuant 338.20 to section 124.914, subdivision 1, subdivision 2shall beis 338.21 applicable. 338.22 Subd. 2. [UNDESIGNATED FUND BALANCES.] Beginning in fiscal 338.23 year 1978 and each year thereafter, any district not subject to 338.24 the provisions of subdivision 1shallmust limit its 338.25 expenditures so that its undesignated fund balancesshalldo not 338.26 constitute statutory operating debt as defined in section 338.27 121.914. 338.28 Subd. 3. [FAILURE TO LIMIT EXPENDITURES.] If aschool338.29 district does not limit its expenditures in accordance with this 338.30 section, the commissioner may so notify the appropriate 338.31 committees of the legislature by no later than January 1 of the 338.32 year following the end of that fiscal year. 338.33 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative 338.34 unappropriated operating fund balance as defined in section 338.35 124A.02, subdivision 25, calculated in accordance with the 338.36 uniform financial accounting and reporting standards for 339.1 Minnesota school districts, as of June 30 each year, is more 339.2 than 2-1/2 percent of the year's expenditure amount, the 339.3 districtshallmust, prior to January 31 of the next fiscal 339.4 year, submit a special operating plan to reduce the district's 339.5 deficit expenditures to the commissionerof children, families,339.6and learningfor approval. The commissioner may also require 339.7 the district to provide evidence that the district meets and 339.8 will continue to meet all of the curriculum requirements of the 339.9 state board. 339.10 Notwithstanding any other law to the contrary, a district 339.11 submitting a special operating plan to the commissioner under 339.12 this clause which is disapproved by the commissionershallmust 339.13 not receive any aid pursuant to chapters 124 and 124A until a 339.14 special operating plan of the district is so approved. 339.15 (2) A districtshallmust receive aids pending the approval 339.16 of its special operating plan under clause (1). A district 339.17 which complies with its approved operating planshallmust 339.18 receive aids as long as the district continues to comply with 339.19 the approved operating plan. 339.20 Sec. 37. Minnesota Statutes 1996, section 123.11, 339.21 subdivision 1, is amended to read: 339.22 Subdivision 1. [ANNUAL MEETING.] The annual meeting of all 339.23 common districtsshallmust be held on the last Tuesday in June, 339.24 at 8:00 p.m., unless a different hour has been fixed at the 339.25 preceding annual meeting, upon ten days' posted. The clerk 339.26 shall give noticegiven by the clerk, andof the meeting, 339.27 specifying the matters to come before such meeting; but. 339.28 Failure of the clerk to give such notice, or to specify the 339.29 business to be transactedthereat, shall not affect the validity 339.30 of any business, except the raising of money to build or 339.31 purchase a school house, the authorizing of an issue of bonds, 339.32 the fixing of a school house site, or the organization as an 339.33 independent district. At the annual meeting in a common 339.34 district five legal voters shall constitute a quorum. The chair 339.35 and clerk of the board shall officiate in their respective 339.36 capacities at all meetings of the electors of the district. In 340.1 the event of the absence of the chair or clerk, the voters shall 340.2 elect a chair or clerk pro tem. The voters shall have the power 340.3 in an annual meeting to repeal and modify their proceedings. 340.4 The polls at all meetings shall be open at least one hour. 340.5 Sec. 38. Minnesota Statutes 1996, section 123.11, 340.6 subdivision 2, is amended to read: 340.7 Subd. 2. [ELECTIONS.] The annual meetingshallmust have 340.8 power to elect, by ballot, officers of the district. In all 340.9 elections or vote by ballot, the clerk shall record the names of 340.10 all voters participating therein and the chair shall appoint two 340.11 electorswho. The electors, with the assistance of the clerk, 340.12 shall supervise the balloting and canvass the votes. If any 340.13 candidates receive an equal number of votes for an office, the 340.14 board shall resolve the tie by lot. 340.15 Sec. 39. Minnesota Statutes 1996, section 123.11, 340.16 subdivision 3, is amended to read: 340.17 Subd. 3. [CANDIDATES FOR OFFICE.] Any person desiring to 340.18 be a candidate for a district office at the annual meeting of 340.19 the district shall file with the clerk of the district an 340.20 application to be placed on the ballot for such office, or. Any 340.21 five voters of the district may filesuchan application for or 340.22 on behalf of any qualified voter in the district that they 340.23 desireshallto besucha candidate.The application340.24 Applications shall be filed not less than 12 days before the 340.25 annualschooldistrict meeting. The clerk of the district, in 340.26 the notice of annual meeting, shall state the names of the 340.27 candidates for whom applications have been filed, failure to do 340.28 so shall not affect the validity of the election thereafter 340.29 held. At the annual meeting of common districts, nomination of 340.30 candidates for offices may be made from the floor by any 340.31 qualified voter. 340.32 Sec. 40. Minnesota Statutes 1996, section 123.11, 340.33 subdivision 4, is amended to read: 340.34 Subd. 4. [BALLOTS.] The clerk shall prepare, at the 340.35 expense of the district, necessary ballots for the election of 340.36 officers placing thereon the names of the proposed candidates 341.1 for such office with a blank space after such names, such. The 341.2 ballots shall be marked as official ballots, andthe ballots so341.3prepared by the clerk of the districtshall be used to the 341.4 exclusion of all other ballots at such annual meeting or 341.5 election in the election of officers of the district. 341.6 Sec. 41. Minnesota Statutes 1996, section 123.11, 341.7 subdivision 7, is amended to read: 341.8 Subd. 7. [SPECIAL MEETING.] Upon the filing of a petition 341.9 therefor, executed by five eligible voters, as defined in 341.10 Minnesota election law, of the common district, specifying the 341.11 business to be acted upon, or upon the adoption of a proper 341.12 resolution so specifying, signed by a majority of the members of 341.13 the board, the clerk shallforthwithcall a special meeting of 341.14 the districtupon. The clerk shall give ten days' posted notice 341.15 and one week's published notice if there be a newspaper printed 341.16 in the district and specify in the notice the business named in 341.17 the request or resolution and the time and place of the 341.18 meeting. If therebeis no clerk in the district or if the 341.19 clerk fails for three days after receiving a request or 341.20 resolution to give notice of a meeting, it may be called by like 341.21 notice by five eligible voters, as defined in Minnesota election 341.22 law, of the district. No business except that named in the 341.23 notice shall be transacted at the meeting. If there are not 341.24 five eligible voters, as defined in Minnesota election law, or 341.25 if there is not a board therein, the county auditor may call a 341.26 special meeting by giving notice thereof as provided in this 341.27 section. The voters at a special meeting have power to repeal 341.28 or modify their proceedings. 341.29 Sec. 42. Minnesota Statutes 1996, section 123.12, is 341.30 amended to read: 341.31 123.12 [BOARDS OF COMMON SCHOOL DISTRICTS.] 341.32 Subdivision 1. [SCHOOL BOARD.] The care, management and 341.33 control of a common district is vested in a board of three 341.34 members to be known as the school board. The term of office of 341.35 a member shall be three years, and until a successor qualifies. 341.36 The board of each common districtshallmust consist of a chair, 342.1 a treasurer, and a clerk. The board may by resolution establish 342.2 a time and place for regular meeting and no notice of such 342.3 meeting need be sent to any members of the board. 342.4 Subd. 2. [FINANCES.] The boardshallmust submit to the 342.5 annual meeting an estimate of the expenses of the district for 342.6 the coming year for a school term as determined by the board and 342.7 for such other specified purposes as the board may deem proper. 342.8 Ifsuchthe annual meetingshall failfails to vote a sufficient 342.9 tax to maintain the district for such time, the boardshallmust 342.10 levy such tax pursuant to and within the limitations of sections 342.11 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, and 342.12 124.918; but no board shall expend any money or incur any 342.13 liability for any purpose beyond the sum appropriated by vote of 342.14 the district for such purpose, or levied by the board pursuant 342.15 to this subdivision, or on hand and applicable thereto. 342.16 Subd. 9. [SCHOOL VISITS.] The boardshallmust visit each 342.17 school at least once every three months. 342.18 Subd. 14. [OFFICIAL NEWSPAPER.] At its first meeting 342.19 following July 1 each year, the boardshallmust designate, by 342.20 resolution, as the official newspaper of the district, some 342.21 legal newspaper of general circulation within the district, and 342.22 contract with such newspaper for its publications. If there is 342.23 more than one such newspaper, the boardshall let suchmust 342.24 enter a contracttowith the lowest responsible bidder at the 342.25 earliest practicable date. All notices and proceedings required 342.26 by law to be published by the boardshallmust be published in 342.27 the official newspaper so designated. The fees for such 342.28 publicationshallmust not exceed the fees for publication of 342.29 legal notices as prescribed by Minnesota Statutes. 342.30 Sec. 43. Minnesota Statutes 1996, section 123.13, is 342.31 amended to read: 342.32 123.13 [OFFICERS OF COMMON SCHOOL DISTRICTS.] 342.33 Subd. 2. [TREASURER.] The treasurer shall receive and be 342.34 responsible for all money in the district and disburse the same 342.35 on orders signed by the clerk and countersigned by the chair or 342.36 other vouchers authorized by law; provided, that,. In the event 343.1 that the chair has been continuously absent from the district 343.2 for a period of 30 days or more, the treasurer may pay orders 343.3 without the signature of the chair. Each ordershallmust state 343.4 the fund on which it is drawn, the name of the payee, and the 343.5 nature of the claim for which such order is issued andshall343.6 must be so drawn that when signed by the treasurer in an 343.7 appropriate place, it becomes a check on theschooldistrict 343.8 depository. The treasurer shall keep an account of each fund, 343.9 and of all receipts and disbursements showing the sources of all 343.10 receipts and the nature and purpose of disbursements. The 343.11 treasurer shall deposit the funds of the district in the 343.12 official depository in accordance with the provisions of law. 343.13 Sec. 44. Minnesota Statutes 1996, section 123.15, is 343.14 amended to read: 343.15 123.15 [SCHOOLHOUSES AND SITES, COMMON SCHOOL DISTRICTS.] 343.16 Subdivision 1. [ACQUISITION OF SITES.] When authorized by 343.17 the voters at a regular meeting or at a special meeting called 343.18 for that purpose, the board may acquire necessary sites for 343.19 school houses, or enlargements or additions to existing school 343.20 house sites, by lease, purchase, or condemnation under the right 343.21 of eminent domain; lease, erect or purchase garages for 343.22 district-owned school buses; and sell or exchange school houses 343.23 or sites and execute deeds of conveyances thereof. It may 343.24 acquire by lease, purchase, or condemnation under eminent domain 343.25 suitable tracts of land eitherwithinin orwithoutoutside of 343.26 the district for the purpose of instruction, experimentation, 343.27 and demonstration in agriculture. In any city, a school site, 343.28 when practicable,shallmust contain at least one block, and,343.29if. Outside of any city, a school site must contain at least two 343.30 acres; and when. If any school house siteshall343.31containcontains less thansuchthe required amount the board 343.32 may, without a vote of the electors, acquire other land adjacent 343.33 to or near such site to make, with such site, all or part 343.34 ofsuchthe required amount.WhenIf property is taken by 343.35 eminent domain by authority of this subdivision, when needed by 343.36 the district for such purpose, the fact that the propertyso344.1needed has beenwas acquired by the owner under the power of 344.2 eminent domain, or is already devoted to public use, shall not 344.3 prevent its acquisition by the district. 344.4 Subd. 2. [SITE DESIGNATION.] The annual meeting or 344.5 election shall have power to designate a site for a school house 344.6 and provide for building or otherwise placing a school house 344.7 thereon, when proper notice has been given; but. A siteon344.8which awith an existing school housestandsor where a school 344.9 house isbegunbeing built shall not be changed except by vote 344.10therefor,of three-fifths of the voters of the district voting 344.11 on the question. 344.12 Subd. 3. [TEACHER DWELLING.] When authorized by a 344.13 two-thirds majority of all the electors voting at an annual or 344.14 special meeting, the board may erect, purchase, or acquire a 344.15 dwelling house for the use of its teachers; provided that. The 344.16 proposition shall be submitted only at a meeting or election,. 344.17 The notice ofwhich statedthe meeting shall state thatsuchthe 344.18 propositionwouldshall be considered or submittedthereat. 344.19 Sec. 45. Minnesota Statutes 1996, section 123.33, 344.20 subdivision 1, is amended to read: 344.21 Subdivision 1. [SCHOOL BOARD.] The care, management, and 344.22 control of independent districtsshall beis vested in a board 344.23 of directors, to be known as the school board. The term of 344.24 office of a member shall be four years and until a successor 344.25 qualifies. The membership of theschoolboard shall consist of 344.26 six elected directors together with such ex officio member as 344.27 may be provided by law.ButThe board may submit to the 344.28 electors at any school election the question whether the board 344.29 shall consist of seven membersand. If a majority of those 344.30 voting on the proposition favor a seven-member board, a seventh 344.31 member shall be elected at the next election of directors for a 344.32 four-year term and thereafter the board shall consist of seven 344.33 members. 344.34 Those districts with a seven-member board may submit to the 344.35 electors at any school election at least 150 days before the 344.36 next election of three members of the board the question whether 345.1 the board shall consist of six members. If a majority of those 345.2 voting on the proposition favor a six-member board instead of a 345.3 seven-member board, two members instead of three members shall 345.4 be elected at the next election of the board of directors and 345.5 thereafter the board shall consist of six members. 345.6 Sec. 46. Minnesota Statutes 1996, section 123.33, 345.7 subdivision 2, is amended to read: 345.8 Subd. 2. [SCHOOL BOARD VACANCY.] A vacancy in any board 345.9 occurs when a member (a) dies,or(b) resigns,or(c) ceases to 345.10 be a resident of the district, or (d) is unable to serve on such 345.11 board and attend its meetings for not less than 90 days because 345.12 of illness or prolonged absence from the district. 345.13 Sec. 47. Minnesota Statutes 1996, section 123.33, 345.14 subdivision 2a, is amended to read: 345.15 Subd. 2a. [SCHOOL BOARD MEMBER TRAINING.] A member 345.16mustshall receive training in school finance and management 345.17 developed in consultation with the Minnesota school boards 345.18 association and consistent with section 121.919. The school 345.19 boards associationshallmust make available to each newly 345.20 elected school board member training in school finance and 345.21 management consistent with section 121.919 within 180 days of 345.22 that member taking office. The program shall be developed in 345.23 consultation with the departmentof children, families, and345.24learningand appropriate representatives of higher education. 345.25 Sec. 48. Minnesota Statutes 1996, section 123.33, 345.26 subdivision 3, is amended to read: 345.27 Subd. 3. [ILL OR ABSENT MEMBER.] A vacancy caused by a 345.28 member being unable to serve on such board and attend its 345.29 meetings for not less than 90 days because of illness or 345.30 prolonged absence from the district, may, after the board has by 345.31 resolution declared such vacancy to exist, be filled by the 345.32 board at any regular or special meeting thereof for the 345.33 remainder of the unexpired term, or until such ill or absent 345.34 member is again able to resume duties as a member of such board, 345.35 whichever date is earliest. Whensuchthe ill or absent member 345.36 isagainable to resume duties as a member of the board, the 346.1 boardshallmust by resolution so determine and declare such 346.2 person to be again a member of the board, and the member 346.3 appointed by the board to be no longer a member thereof. 346.4 Sec. 49. Minnesota Statutes 1996, section 123.33, 346.5 subdivision 4, is amended to read: 346.6 Subd. 4. [VACANCY; APPOINTMENT.] Any other vacancy in a 346.7 boardshallmust be filled by board appointment at a regular or 346.8 special meeting. The appointment shall be evidenced by a 346.9 resolution entered in the minutes and shall continue until an 346.10 election is held under this subdivision. All elections to fill 346.11 vacancies shall be for the unexpired term. If the vacancy 346.12 occurs before the first day to file affidavits of candidacy for 346.13 the next school district general election and more than two 346.14 years remain in the unexpired term, a special election shall be 346.15 held in conjunction with the school district general election. 346.16 The appointed person shall serve until the qualification of the 346.17 successor elected to fill the unexpired part of the term at that 346.18 special election. If the vacancy occurs on or after the first 346.19 day to file affidavits of candidacy for the school district 346.20 general election, or when less than two years remain in the 346.21 unexpired term, there shall be no special election to fill the 346.22 vacancy and the appointed person shall serve the remainder of 346.23 the unexpired term and until a successor is elected and 346.24 qualifies at the school district election. 346.25 Sec. 50. Minnesota Statutes 1996, section 123.33, 346.26 subdivision 6, is amended to read: 346.27 Subd. 6. [RULES.] The board shall make, and when deemed 346.28 advisable, change or repeal rules relating to the organization 346.29 and management of the board and the duties of its officers. 346.30 Sec. 51. Minnesota Statutes 1996, section 123.33, 346.31 subdivision 7, is amended to read: 346.32 Subd. 7. [DUTIES.] The boardshallmust superintend and 346.33 manage the schools of the district; adopt rules for their 346.34 organization, government, and instruction; keep registers; and 346.35 prescribe textbooks and courses of study. The board may enter 346.36 into an agreement with a post-secondary institution for 347.1 secondary or post-secondary nonsectarian courses to be taught at 347.2 a secondary school, nonsectarian post-secondary institution, or 347.3 another location. 347.4 Sec. 52. Minnesota Statutes 1996, section 123.33, 347.5 subdivision 11, is amended to read: 347.6 Subd. 11. [PUBLISHING OF PROCEEDINGS.] The boardshall347.7 must cause its official proceedings to be published once in the 347.8 official newspaper of the district. Such publication shall be 347.9 made within 30 days of the meeting at which such proceedings 347.10 occurred. If the board determines that publication of a summary 347.11 of the proceedings would adequately inform the public of the 347.12 substance of the proceedings, the board may direct that only a 347.13 summary be published, conforming to the requirements of section 347.14 331A.01, subdivision 10. 347.15 Sec. 53. Minnesota Statutes 1996, section 123.33, 347.16 subdivision 11a, is amended to read: 347.17 Subd. 11a. [MAILING OF PROCEEDINGS.] If aschoolboard of 347.18 a district that has no newspaper with its known office of issue 347.19 or a secondary office located within the boundaries of the 347.20 district and no newspaper that is distributed to more than 347.21 one-third of the residences in the district determines that 347.22 mailing a summary of its proceedings would be more economical 347.23 than publication of the proceedings and that it would adequately 347.24 inform the public, it may mail a summary of its proceedings to 347.25 each residence in the district that can be identified as a 347.26 homestead from the property tax records and to each other 347.27 residence in the district that the board can identify. The 347.28 countyshallmust make the property tax records available to the 347.29 board for this purpose. The boardshallmust keep a copy of the 347.30 summary of the proceedings as part of its records. The decision 347.31 of aschoolboard to mail summaries, rather than publish the 347.32 proceedings under this subdivision shall be presumed valid, 347.33 subject to challenge by a court action. 347.34 Sec. 54. Minnesota Statutes 1996, section 123.335, is 347.35 amended to read: 347.36 123.335 [IMPREST CASH FUNDS.] 348.1 Subdivision 1. [IMPREST FUND.] The board may establish one 348.2 or more imprest funds for the payment in cash of any proper 348.3 claim against the district which it is impractical to pay in any 348.4 other manner, except that no claim for salary or personal 348.5 expenses of a district officer or employee shall be paid from 348.6 such funds. The boardshallmust appoint a custodian of each 348.7 such fund who shall be responsible for its safekeeping and 348.8 disbursement according to law. Money for the operation of such 348.9 fund shall be secured by a transfer from the general fund. A 348.10 claim itemizing all the various demands for which disbursements 348.11 have been made from the fundshallmust be presented to the 348.12 board at the next board meeting after the disbursements have 348.13 been made. The boardshallmust act upon it as in the case of 348.14 other claims and an order shall be issued to the custodian for 348.15 the amount allowed. The custodian shall use the proceeds of the 348.16 order to replenish the fund; and. If the board fails to approve 348.17 the claim in full for any sufficient reason, the custodian shall 348.18 be personally responsible for the difference. 348.19 Subd. 2. [ADVANCES.] The board may authorize an imprest 348.20 fund for the purpose of advancing money to officers or employees 348.21 to pay the actual and necessary expenses of such officer or 348.22 employee in attending meetings outside of the district. The 348.23 boardshallmust appoint a custodian of such fund who shall be 348.24 responsible for its safekeeping and disbursement according to 348.25 law. At the first regular meeting of the board after such 348.26 meeting, the custodian shall submit an itemized claim for the 348.27 actual and necessary expenses incurred and paid. The 348.28 boardshallmust act upon it as in the case of other claims and 348.29 an order shall be issued to the custodian for the amount 348.30 allowed. The custodian shall use the proceeds of the order to 348.31 repay the amount advanced from the fund and make final 348.32 settlement with the officer or employee. As an alternative the 348.33 board may authorize travel advances if control is maintained by 348.34 use of a travel advance account, the balance of which is 348.35 supported by names of employees to whom money has been advanced. 348.36 Sec. 55. Minnesota Statutes 1996, section 123.34, 349.1 subdivision 1, is amended to read: 349.2 Subdivision 1. [OFFICER SELECTION.] Within ten days after 349.3 the election of the first board in independent districts and 349.4 annually thereafter on July 1, or as soon thereafter as 349.5 practicable, the boardshallmust meet and organize by selecting 349.6 a chair, clerk, and a treasurer, who shall hold their offices 349.7 for one year and until their successors are selected and 349.8 qualify. The persons who perform the duties of the clerk and 349.9 treasurer need not be members of the board and the board by 349.10 resolution may combine the duties of the offices of clerk and 349.11 treasurer in a single person in the office of business affairs. 349.12 They may appoint a superintendent who shall be ex officio a 349.13 member of the board, but not entitled to vote therein. In 349.14 districts in which board members are elected at the general 349.15 election in November, the annual meeting of the boardshallmust 349.16 be held on the first Monday of January or as soon thereafter as 349.17 practicable. 349.18 Sec. 56. Minnesota Statutes 1996, section 123.34, 349.19 subdivision 2, is amended to read: 349.20 Subd. 2. [CHAIR.] The chair when present shall preside at 349.21 all meetings of the board, countersign all orders upon the 349.22 treasurer for claims allowed by the board, represent the 349.23 district in all actions and perform all the duties usually 349.24 incumbent on such officer. In case of absence, inability, or 349.25 refusal of the clerk to draw orders for the payment of money 349.26 authorized by a vote of the majority of the board to be paid, 349.27 the orders may be drawn by the chair, and paid by the 349.28 treasurer,. A statementthereofof the orders drawn, with a 349.29 copy of such orders,beingshall be delivered to the clerk by 349.30 the treasurer, or the office of the clerk may be declared vacant 349.31 by the chair and treasurer and filled by appointment. 349.32 Sec. 57. Minnesota Statutes 1996, section 123.34, 349.33 subdivision 7, is amended to read: 349.34 Subd. 7. [PERFORMANCE BOND.] When the duty devolves upon 349.35 any person employed by a board to receive money and pay it over 349.36 to the treasurer of the district, the districtshallmust 350.1 require a bond from such person and pay all premiums therefor. 350.2 The amount of each bond shall be fixed by the board and the bond 350.3 approved by it. The bondshallmust be not less than $500 350.4 conditioned for the faithful performance of the duty andshall350.5 be filed with the clerk. In lieu of individual bonds, the 350.6 district may prescribe and keep in effect a schedule or position 350.7 insurance policy or blanket bond in such aggregate amount as the 350.8 district determines, insuring the fidelity of such persons in 350.9 the amount of not less than $500 for each such person. 350.10 Sec. 58. Minnesota Statutes 1996, section 123.34, 350.11 subdivision 8, is amended to read: 350.12 Subd. 8. [CLERK RECORDS.] The clerk shall keep a record of 350.13 all meetings of the district and the board in books provided by 350.14 the district for that purpose. The clerk shall, within three 350.15 days after an election, notify all persons elected of their 350.16 election.On or beforeBy August 15 of each year the clerk 350.17 shall file with the board a report of the revenues, expenditures 350.18 and balances in each fund for the preceding fiscal year. The 350.19 report together with vouchers and supporting documents shall 350.20 subsequently be examined by a public accountant or the state 350.21 auditor, either of whom shall be paid by theschooldistrict, as 350.22 provided in section 121.908, subdivision 3. The board shall by 350.23 resolution approve the report or require a further or amended 350.24 report.On or beforeBy August 15 of each year, the clerk shall 350.25 make and transmit to the commissioner certified reports, showing: 350.26 (1) The condition and value of school property; 350.27 (2) The revenues and expenditures in detail, and such other 350.28 financial information required by law, rule, or as may be called 350.29 for by the commissioner; 350.30 (3) The length of school term and the enrollment and 350.31 attendance by grades; and 350.32 (4) Such other items of information as may be called for by 350.33 the commissioner. 350.34 The clerk shall enter in the clerk's record book copies of 350.35 all reports and of the teachers' term reports, as they appear in 350.36 the registers, and of the proceedings of any meeting as 351.1 furnished by the clerk pro tem, and keep an itemized account of 351.2 all the expenses of the district. The clerk shall furnish to 351.3 the auditor of the proper county,on or beforeby October 10 of 351.4 each year, an attested copy of the clerk's record, showing the 351.5 amount of money voted by the district or the board for school 351.6 purposes; draw and sign all orders upon the treasurer for the 351.7 payment of money for bills allowed by the board for salaries of 351.8 officers and for teachers' wages and all claims, to be 351.9 countersigned by the chair. Such ordersshallmust state the 351.10 consideration, payee, and the fund and the clerk shall take a 351.11 receipt therefor. Teachers' wages shall have preference in the 351.12 order in which they become due, and no money applicable for 351.13 teachers' wages shall be used for any other purpose, nor shall 351.14 teachers' wages be paid from any fund except that raised or 351.15 apportioned for that purpose. 351.16 Sec. 59. Minnesota Statutes 1996, section 123.34, 351.17 subdivision 9, is amended to read: 351.18 Subd. 9. [SUPERINTENDENT.] All districts maintaining a 351.19 classified secondary schoolshallmust employ a superintendent 351.20 who shall be an ex officio nonvoting member of the school board. 351.21 The authority for selection and employment of a superintendent 351.22shallmust be vested in theschoolboard in all cases. An 351.23 individual employed by aschoolboard as a superintendent shall 351.24 have an initial employment contract for a period of time no 351.25 longer than three years from the date of employment. Any 351.26 subsequent employment contract must not exceed a period of three 351.27 years. Aschoolboard, at its discretion, may or may not renew 351.28 an employment contract. Aschoolboardshallmust not, by 351.29 action or inaction, extend the duration of an existing 351.30 employment contract. Beginning 365 days prior to the expiration 351.31 date of an existing employment contract, aschoolboard may 351.32 negotiate and enter into a subsequent employment contract to 351.33 take effect upon the expiration of the existing contract. A 351.34 subsequent contractshallmust be contingent upon the employee 351.35 completing the terms of an existing contract. If a contract 351.36 between aschoolboard and a superintendent is terminated prior 352.1 to the date specified in the contract, theschoolboard may not 352.2 enter into another superintendent contract with that same 352.3 individual that has a term that extends beyond the date 352.4 specified in the terminated contract. Aschoolboard may 352.5 terminate a superintendent during the term of an employment 352.6 contract for any of the grounds specified in section 125.12, 352.7 subdivision 6 or 8. A superintendent shall not rely upon an 352.8 employment contract with aschoolboard to assert any other 352.9 continuing contract rights in the position of superintendent 352.10 under section 125.12. Notwithstanding the provisions of 352.11 sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any 352.12 other law to the contrary, no individual shall have a right to 352.13 employment as a superintendent based on order of employment in 352.14 any district. If two or moreschooldistricts enter into an 352.15 agreement for the purchase or sharing of the services of a 352.16 superintendent, the contracting districts have the absolute 352.17 right to select one of the individuals employed to serve as 352.18 superintendent in one of the contracting districts and no 352.19 individual has a right to employment as the superintendent to 352.20 provide all or part of the services based on order of employment 352.21 in a contracting district. The superintendent of a district 352.22 shall perform the following: 352.23 (1) visit and supervise the schools in the district, report 352.24 and make recommendations about their condition when advisable or 352.25 on request by the board; 352.26 (2) recommend to the board employment and dismissal of 352.27 teachers; 352.28 (3) superintend school grading practices and examinations 352.29 for promotions; 352.30 (4) make reports required by the commissionerof children,352.31families, and learning; and 352.32 (5) perform other duties prescribed by the board. 352.33 Sec. 60. Minnesota Statutes 1996, section 123.34, 352.34 subdivision 9a, is amended to read: 352.35 Subd. 9a. [DISCLOSE PAST BUYOUTS OR CONTRACT IS VOID.] (a) 352.36 For the purposes of paragraph (b), a "buyout agreement" is any 353.1 agreement under which a person employed as a superintendent left 353.2 the position before the term of the contract was over and 353.3 received a sum of money, something else of value, or the right 353.4 to something of value for some purpose other than performing the 353.5 services of a superintendent. 353.6 (b) Before a person may enter into a superintendent's 353.7 contract with aschoolboard, the candidate shall disclose in 353.8 writing the existence and terms of any previous buyout 353.9 agreement, including amounts and the purpose for the payments, 353.10 relating to a superintendent's contract with anotherschool353.11 board. A disclosure made under this paragraph is public data. 353.12 (c) The superintendent's contract of a person who fails to 353.13 make a timely disclosure under paragraph (b) is void. 353.14 Sec. 61. Minnesota Statutes 1996, section 123.34, 353.15 subdivision 10, is amended to read: 353.16 Subd. 10. [PRINCIPALS.] Each public school building, as 353.17 defined by section 120.05, subdivision 2, clauses (1), (2), and 353.18 (3), in an independentschooldistrict may be under the 353.19 supervision of a principal who is assigned to that 353.20 responsibility by the board of education in thatschooldistrict 353.21 upon the recommendation of the superintendent of schools of that 353.22schooldistrict. If pupils in kindergarten through grade 12 353.23 attend school in one building, one principal may supervise the 353.24 building. 353.25 Each principal assigned the responsibility for the 353.26 supervision of a school building shall hold a valid license in 353.27 the assigned position of supervision and administration as 353.28 established by the rules of the state board of education. 353.29 The principal shall provide administrative, supervisory, 353.30 and instructional leadership services, under the supervision of 353.31 the superintendent of schools of theschooldistrict and in 353.32 accordance with the policies, rules, and regulations of the 353.33 board of education, for the planning, management, operation, and 353.34 evaluation of the education program of the building or buildings 353.35 to which the principal is assigned. 353.36 Sec. 62. Minnesota Statutes 1996, section 123.35, 354.1 subdivision 1, is amended to read: 354.2 Subdivision 1. [BOARD AUTHORITY.] The boardshallmust 354.3 have the general charge of the business of the district, the 354.4 school houses, and of the interests of the schools thereof. The 354.5 board's authority to conduct the business of the district 354.6 includes implied powers in addition to any specific powers 354.7 granted by the legislature. 354.8 Sec. 63. Minnesota Statutes 1996, section 123.35, 354.9 subdivision 2, is amended to read: 354.10 Subd. 2. [FACILITIES FOR SCHOOL-AGE CHILDREN.] Itshall be354.11 is the duty and the function of the district to furnish school 354.12 facilities to every child of school age residing in any part of 354.13 the district. The board may establish and organize and alter 354.14 and discontinue such grades or schools as it may deem advisable 354.15 and assign to each school and grade a proper number of pupils. 354.16 The board shall provide free textbooks for the pupils of the 354.17 district. 354.18 Sec. 64. Minnesota Statutes 1996, section 123.35, 354.19 subdivision 4, is amended to read: 354.20 Subd. 4. [LEVY.] The boardshallmust provide by levy of 354.21 tax necessary funds for the conduct of schools, the payment of 354.22 indebtedness, and all proper expenses of the district. 354.23 Sec. 65. Minnesota Statutes 1996, section 123.35, 354.24 subdivision 9b, is amended to read: 354.25 Subd. 9b. [SERVICES FOR INDIAN STUDENTS.] School districts 354.26 may enter into agreements with Indian tribal governments for 354.27 purposes of providing educational services for students. Such 354.28 agreements may allow for the use of any resources available to 354.29 either party and must give students the option to enroll in 354.30 theschooldistrict at their election. 354.31 Sec. 66. Minnesota Statutes 1996, section 123.35, 354.32 subdivision 12, is amended to read: 354.33 Subd. 12. [ANNUITY CONTRACT; PAYROLL ALLOCATION.] At the 354.34 request of an employee and as part of the employee's 354.35 compensation arrangement, the board may purchase an individual 354.36 annuity contract for an employee for retirement or other 355.1 purposes and may make payroll allocations in accordance with 355.2 such arrangement for the purpose of paying the entire premium 355.3 due and to become due under such contract. The allocationshall355.4 must be made in a manner which will qualify the annuity 355.5 premiums,(or a portion thereof), for the benefit afforded under 355.6 section 403(b) of the current Federal Internal Revenue Code or 355.7 any equivalent provision of subsequent federal income tax law. 355.8 The employee shall own such contract and the employee's 355.9 rightsthereunderunder the contract shall be nonforfeitable 355.10 except for failure to pay premiums. Section 125.12 shall not be 355.11 applicable hereto and the board shall have no liability 355.12 thereunder because of its purchase of any individual annuity 355.13 contracts. This statute shall be applied in a nondiscriminatory 355.14 manner to employees of the school district. 355.15 Sec. 67. Minnesota Statutes 1996, section 123.35, 355.16 subdivision 15, is amended to read: 355.17 Subd. 15. [PAYMENT OF CLAIMS.] When payment of a claim 355.18 cannot be deferred until the next board meeting without loss to 355.19 the district of a discount privilege, or when payment of a claim 355.20 cannot be deferred until the next board meeting because of 355.21 contract terms, purchase order terms, or a vendor's standard 355.22 terms which are part of the contract, the claim may be paid 355.23 prior to board approval, providing that the board: 355.24 (a) Has delegated authority to the clerk or a designated 355.25 business administrator to make a payment prior to board approval 355.26 and 355.27 (b) Requires that payment made prior to board approval be 355.28 acted upon at the next board meeting. 355.29 Payment prior to board approvalshallmust not affect the 355.30 right of the district or a taxpayer to challenge the validity of 355.31 a claim. 355.32 Sec. 68. Minnesota Statutes 1996, section 123.35, 355.33 subdivision 20, is amended to read: 355.34 Subd. 20. [LEGAL COUNSEL; REIMBURSEMENT.] If reimbursement 355.35 is requested by aschooldistrict employee, the board may, after 355.36 consulting with its legal counsel, reimburse the employee for 356.1 any costs and reasonable attorney fees incurred by the person to 356.2 defend criminal charges brought against the person arising out 356.3 of the performance of duties for theschooldistrict. A board 356.4 member who is a witness or an alleged victim in the case may not 356.5 vote on the reimbursement. If a quorum of the board is 356.6 disqualified from voting on the reimbursement, the reimbursement 356.7shallmust be approved by a judge of the district court. 356.8 Sec. 69. Minnesota Statutes 1996, section 123.36, 356.9 subdivision 1, is amended to read: 356.10 Subdivision 1. [SITES.] According to section 124.91, 356.11 subdivision 1, or 465.71, when funds are availabletherefor, the 356.12 board may locate and acquire necessary sites of schoolhouses or 356.13 enlargements, or additions to existing schoolhouse sites by 356.14 lease, purchase or condemnation under the right of eminent 356.15 domain; it may erect schoolhousesthereonon the sites; it may 356.16 erect or purchase garages for district-owned school buses. When 356.17 property is taken by eminent domain by authority of this 356.18 subdivision when needed by theschooldistrict for such 356.19 purposes, the fact that the propertyso neededhas been acquired 356.20 by the owner under the power of eminent domain or is already 356.21 devoted to public use, shall not prevent its acquisition by 356.22 theschooldistrict. The board may sell or exchange 356.23 schoolhouses or sites, and execute deeds of conveyance thereof. 356.24 Sec. 70. Minnesota Statutes 1996, section 123.36, 356.25 subdivision 5, is amended to read: 356.26 Subd. 5. [USE OF SCHOOL HOUSES.] The board may authorize 356.27 the use of any schoolhouses in the district for divine worship, 356.28 Sunday schools, public meetings, elections, post-secondary 356.29 instruction, and other community purposes that, in its judgment, 356.30 will not interfere with their use for school purposes. Before 356.31 permitting any of these uses, the board may require a cash or 356.32 corporate surety bond in a reasonable amount conditioned for the 356.33 proper use of the schoolhouse, payment of all rent, and repair 356.34 of all damageoccasionedcaused by the use. It may determine a 356.35 reasonable charge for using the schoolhouse. 356.36 It may authorize the use of any schoolhouses or buildings 357.1 owned or leased by the district for primaries, elections, 357.2 registrations, and related activities if the board determines 357.3 that the use will not interfere with school purposes. It may 357.4 impose reasonable regulations and conditions upon the use as may 357.5 seem necessary and proper. 357.6 Sec. 71. Minnesota Statutes 1996, section 123.36, 357.7 subdivision 10, is amended to read: 357.8 Subd. 10. [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 357.9 lease to any person, business, or organization a schoolhouse 357.10 that is not needed for school purposes, or part of a schoolhouse 357.11 that is not needed for school purposes if the board determines 357.12 that leasing part of a schoolhouse does not interfere with the 357.13 educational programs taking place in the rest of the building. 357.14 The board may charge and collect reasonable consideration for 357.15 the lease and may determine the terms and conditions of the 357.16 lease. 357.17 (b) In districts with outstanding bonds, the net proceeds 357.18 of the leaseshallmust be first deposited in the debt 357.19 retirement fund of the district in an amount sufficient to meet 357.20 when due that percentage of the principal and interest payments 357.21 for outstanding bonds that is ascribable to the payment of 357.22 expenses necessary and incidental to the construction or 357.23 purchase of the particular building or property that is leased. 357.24 Any remaining net proceeds in these districts may be deposited 357.25 in either the debt redemption fund or capital expenditure fund. 357.26 All net proceeds of the lease in districts without outstanding 357.27 bonds shall be deposited in the capital expenditure fund of the 357.28 district. 357.29 (c) The board may make capital improvements, including 357.30 fixtures, to a schoolhouse or a portion thereof, not exceeding 357.31 in cost the replacement value of the schoolhouse, to facilitate 357.32 its rental, and the lease of an improved schoolhouse, or part of 357.33 it, shall provide for rentals which will recover the cost of the 357.34 improvements over the initial term of the lease. 357.35 Notwithstandingclauseparagraph (b), the portion of the rentals 357.36 representing the cost of the improvements shall be deposited in 358.1 the capital expenditure fund of the district and the balance of 358.2 the rentals shall be used as provided inclauseparagraph (b). 358.3 Sec. 72. Minnesota Statutes 1996, section 123.36, 358.4 subdivision 11, is amended to read: 358.5 Subd. 11. [SCHOOLHOUSE CLOSING.] The board may close a 358.6 schoolhouse only after a public hearing on the question of the 358.7 necessity and practicability of the proposed closing. Published 358.8 notice of the hearing shall be given for two weeks in the 358.9 official newspaper of the district. The time and place of the 358.10 meeting, the description and location of the schoolhouse, and a 358.11 statement of the reasons for the closingshallmust be specified 358.12 in the notice. Parties requesting to give testimony for and 358.13 against the proposal shall be heard by the board before it makes 358.14 a final decision to close or not to close the schoolhouse. 358.15 Sec. 73. Minnesota Statutes 1996, section 123.36, 358.16 subdivision 13, is amended to read: 358.17 Subd. 13. [PROCEEDS OF SALE OR EXCHANGE.] (a) Proceeds of 358.18 the sale or exchange of school buildings or real property of the 358.19schooldistrictshallmust be used as provided in this 358.20 subdivision. 358.21(a)(b) In districts with outstanding bonds, the proceeds 358.22 of the sale or exchange shall first be deposited in the debt 358.23 retirement fund of the district in an amount sufficient to meet 358.24 when due that percentage of the principal and interest payments 358.25 for outstanding bonds which is ascribable to the payment of 358.26 expenses necessary and incidental to the construction or 358.27 purchase of the particular building or property which is sold. 358.28(b)(c) After satisfying the requirements of paragraph 358.29(a)(b), a district with outstanding bonds may deposit proceeds 358.30 of the sale or exchange in its capital expenditure fund if the 358.31 amount deposited is used for the following: 358.32 (1) for expenditures for the cleanup of polychlorinated 358.33 biphenyls, if the method for cleanup is approved by the 358.34 departmentof children, families, and learning; 358.35 (2) for capital expenditures for the betterment, as defined 358.36 in section 475.51, subdivision 8, of district-owned school 359.1 buildings; or 359.2 (3) to replace the building or property sold. 359.3(c)(d) In a district with outstanding bonds, the amount of 359.4 the proceeds of the sale or exchange remaining after the 359.5 application of paragraphs(a) and (b)(b) and (c), which is 359.6 sufficient to meet when due that percentage of the principal and 359.7 interest payments for the district's outstanding bonds which is 359.8 not governed by paragraph(a)(b), shall be deposited in the 359.9 debt retirement fund. 359.10(d)(e) Any proceeds of the sale or exchange remaining in 359.11 districts with outstanding bonds after the application of 359.12 paragraphs(a), (b), and (c)(b), (c), and (d), and all proceeds 359.13 of the sale or exchange in districts without outstanding bonds 359.14 shall be deposited in the capital expenditure fund of the 359.15 district. 359.16(e)(f) Notwithstanding paragraphs(b) and (c)(c) and (d), 359.17 a district with outstanding bonds may deposit in its capital 359.18 expenditure fund and use for any lawful capital expenditure 359.19 without the reduction of any levy limitation the same percentage 359.20 of the proceeds of the sale or exchange of a building or 359.21 property as the percentage of the initial cost of purchasing or 359.22 constructing the building or property which was paid using 359.23 revenue from the capital expenditure fund. 359.24 Sec. 74. Minnesota Statutes 1996, section 123.36, 359.25 subdivision 14, is amended to read: 359.26 Subd. 14. [ASBESTOS REMOVAL AND POLYCHLORINATED BIPHENYLS 359.27 CLEANUP.] Notwithstanding any law to the contrary,school359.28 districts may, without an election, enter into contracts 359.29 extending beyond the end of the fiscal year to pay the costs of 359.30 removal or encapsulation of asbestos or cleanup of 359.31 polychlorinated biphenyls found in school buildings or on school 359.32 property. 359.33 Sec. 75. Minnesota Statutes 1996, section 123.37, 359.34 subdivision 1, is amended to read: 359.35 Subdivision 1. [CONTRACTS.]NoA contract for work or 359.36 labor, or for the purchase of furniture, fixtures, or other 360.1 property, except books registered under the copyright laws, or 360.2 for the construction or repair of school houses, the estimated 360.3 cost or value of which shall exceed that specified in section 360.4 471.345, subdivision 3,shallmust not be made by the school 360.5 board without first advertising for bids or proposals by two 360.6 weeks' published notice in the official newspaper. This 360.7 noticeshallmust state the time and place of receiving bids and 360.8 contain a brief description of the subject matter. 360.9 Additional publication in the official newspaper or 360.10 elsewhere may be made as the board shall deem necessary. 360.11 After taking into consideration conformity with the 360.12 specifications, terms of delivery, and other conditions imposed 360.13 in the call for bids, every such contractshallmust be awarded 360.14 to the lowest responsible bidder, be duly executed in writing, 360.15 and be otherwise conditioned as required by law. The person to 360.16 whom the contract is awarded shall give a sufficient bond to the 360.17 board for its faithful performance. Notwithstanding section 360.18 574.26 or any other law to the contrary, on a contract limited 360.19 to the purchase of a finished tangible product, aschoolboard 360.20 may require, at its discretion, a performance bond of a 360.21 contractor in the amount the board considers necessary. A 360.22 recordshallmust be kept of all bids, with names of bidders and 360.23 amount of bids, and with the successful bid indicated thereon. 360.24 A bid containing an alteration or erasure of any price contained 360.25 in the bid which is used in determining the lowest responsible 360.26 bidshallmust be rejected unless the alteration or erasure is 360.27 corrected ashereinprovided in this section. An alteration or 360.28 erasure may be crossed out and the correction thereof printed in 360.29 ink or typewritten adjacent thereto and initialed in ink by the 360.30 person signing the bid. In the case of identical low bids from 360.31 two or more bidders, the board may, at its discretion, utilize 360.32 negotiated procurement methods with the tied low bidders for 360.33 that particular transaction, so long as the price paid does not 360.34 exceed the low tied bid price. In the case where only a single 360.35 bid is received, the board may, at its discretion, negotiate a 360.36 mutually agreeable contract with the bidder so long as the price 361.1 paid does not exceed the original bid. If no satisfactory bid 361.2 is received, the board may readvertise. Standard requirement 361.3 price contracts established for supplies or services to be 361.4 purchased by the districtshallmust be established by 361.5 competitive bids. Such standard requirement price contracts may 361.6 contain escalation clauses and may provide for a negotiated 361.7 price increase or decrease based upon a demonstrable 361.8 industrywide or regional increase or decrease in the vendor's 361.9 costs. Either party to the contract may request that the other 361.10 party demonstrate such increase or decrease. The term of such 361.11 contractsshallmust not exceed two years with an option on the 361.12 part of the district to renew for an additional two years. 361.13Provided that in the case ofContracts for the purchase of 361.14 perishable food items, except milk for school lunches and 361.15 vocational training programsa contract of, in any amount may be 361.16 made by direct negotiation by obtaining two or more written 361.17 quotations for the purchase or sale, when possible, without 361.18 advertising for bids or otherwise complying with the 361.19 requirements of this section or section 471.345, subdivision 3. 361.20 All quotations obtained shall be kept on file for a period of at 361.21 least one year after receiptthereof. 361.22 Every contract made without compliance with the provisions 361.23 of this section shall be void.Provided, thatExcept in the 361.24 case of the destruction of buildings or injury thereto, where 361.25 the public interest would suffer by delay, contracts for repairs 361.26 may be made without advertising for bids. 361.27 Sec. 76. Minnesota Statutes 1996, section 123.37, 361.28 subdivision 1a, is amended to read: 361.29 Subd. 1a. [CONTRACT WITHIN BUDGETED AMOUNTS.] The board 361.30 may authorize its superintendent or business manager to lease, 361.31 purchase, and contract for goods and services within the budget 361.32 as approved by the board, provided that. Any transaction in an 361.33 amount exceeding the minimum amount for which bids are required 361.34 must first be specifically authorized by the board and must 361.35 fulfill all other applicable requirements in subdivision 1. 361.36 Sec. 77. Minnesota Statutes 1996, section 123.37, 362.1 subdivision 1b, is amended to read: 362.2 Subd. 1b. [TRANSPORTATION; FUEL.] Notwithstanding the 362.3 provisions of subdivision 1 or section 471.345, a contract for 362.4 the transportation of school children, or a contract for the 362.5 purchase of petroleum heating fuel or fuel for vehicles may be 362.6 made by direct negotiation, by obtaining two or more written 362.7 quotations for the service when possible, or upon sealed bids. 362.8 At least 30 days before awarding a directly negotiated contract, 362.9 theschooldistrictshallmust, by published notice, request 362.10 quotations for the service to be provided. All quotations 362.11 obtainedshallmust be kept on file for a period of at least one 362.12 year after receiptthereof. If a contract is made by direct 362.13 negotiation, all quotationsshallmust be public information. 362.14 If a contract is made upon sealed bids, the procedure for 362.15 advertising and awarding bids shall conform to the provisions of 362.16 subdivision 1 except as otherwise provided in this subdivision. 362.17 Notwithstanding the provisions of subdivision 1 or section 362.18 574.26, a performance bondshallmust be required of a 362.19 contractor on a contract for the transportation of school 362.20 children only whenand in the amountdeemed necessary by and at 362.21 the discretion of theschoolboard. Such a performance bond 362.22 must be in the amount determined by the board. 362.23 Sec. 78. Minnesota Statutes 1996, section 123.38, 362.24 subdivision 1, is amended to read: 362.25 Subdivision 1. [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 362.26 Whenever itshall appearappears to be beneficial and for the 362.27 best interest of the district and the pupils of the district to 362.28 carry on any school sport activities or educational activities 362.29 connected with their studies outside of the territorial limits 362.30 of theschooldistrict, the board may authorize such activities 362.31 to be conducted under such rules and regulations as the board 362.32 deems sufficient. The district may pay all necessary costs 362.33 therefor including transportation from theschooldistrict funds 362.34 available. 362.35 Sec. 79. Minnesota Statutes 1996, section 123.38, 362.36 subdivision 2, is amended to read: 363.1 Subd. 2. [COCURRICULAR ACTIVITIES AUTHORIZATION.] The 363.2 boardshallmust take charge of and control all cocurricular 363.3 school activities of the teachers and children of the public 363.4 schools in that district held in the school building or school 363.5 grounds or under the supervision or direction of the school 363.6 boardand to that end. The board must adopt rules and 363.7 regulations for the conduct ofthesecocurricular activities in 363.8 which the schools of the district or any class or pupils therein 363.9 may participate. All money received on account of such 363.10 activitiesshallmust be turned over to theschooldistrict 363.11 treasurer, who shall keep the same in the general fund, to be 363.12 disbursed for expenses and salaries connected with the 363.13 activities, or otherwise, by the board upon properly allowed 363.14 itemized claims. 363.15No cocurricular activity shall be participated in by the363.16 Teachers or pupils in the public schools of such district must 363.17 not participate in cocurricular activities, nor shall the school 363.18 name or any allied name be used in connection therewith, except 363.19 by consent and direction of the board. 363.20 Sec. 80. Minnesota Statutes 1996, section 123.38, 363.21 subdivision 2a, is amended to read: 363.22 Subd. 2a. [COCURRICULAR ACTIVITIES.] Cocurricular 363.23 activitiesshall meanmeans school sponsored and directed 363.24 activities designed to provide opportunities for pupils to 363.25 participate, on an individual or group basis, in school and 363.26 public events for the improvement of skills. Cocurricular 363.27 activities are not offered for school credit, cannot be counted 363.28 toward graduation and have one or more of the following 363.29 characteristics: 363.30 (a) They are conducted at regular and uniform times during 363.31 school hours, or at times established by school authorities; 363.32 (b) Although not offered for credit, they are directed or 363.33 supervised by instructional staff in a learning environment 363.34 similar to that found in courses offered for credit; 363.35 (c) They are partially funded by public moneys for general 363.36 instructional purposes under direction and control of the board. 364.1 Sec. 81. Minnesota Statutes 1996, section 123.38, 364.2 subdivision 2b, is amended to read: 364.3 Subd. 2b. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 364.4 (a) The board may take charge of and control all extracurricular 364.5 activities of the teachers and children of the public schools in 364.6 the district. Extracurricular activitiesshall meanmeans all 364.7 direct and personal services for public school pupils for their 364.8 enjoyment that are managed and operated under the guidance of an 364.9 adult or staff member. 364.10 (b) Extracurricular activities have all of the following 364.11 characteristics: 364.12 (1) they are not offered for school credit nor required for 364.13 graduation; 364.14 (2) they are generally conducted outside school hours, or 364.15 if partly during school hours, at times agreed by the 364.16 participants, and approved by school authorities; 364.17 (3) the content of the activities is determined primarily 364.18 by the pupil participants under the guidance of a staff member 364.19 or other adult. 364.20 (c) If the board does not take charge of and control 364.21 extracurricular activities, these activities shall be 364.22 self-sustaining with all expenses, except direct salary costs 364.23 and indirect costs of the use of school facilities, met by dues, 364.24 admissions, or other student fundraising events. The general 364.25 fundshallmust reflect only those salaries directly related to 364.26 and readily identified with the activity and paid by public 364.27 funds. Other revenues and expenditures for extra curricular 364.28 activities must be recorded according to the "Manual of 364.29 Instruction for Uniform Student Activities Accounting for 364.30 Minnesota School Districts and Area Vocational-Technical 364.31 Colleges." Extracurricular activities not under board control 364.32 must have an annual financial audit and must also be audited 364.33 annually for compliance with this section. 364.34 (d) If the board takes charge of and controls 364.35 extracurricular activities, any or all costs of these activities 364.36 may be provided from school revenues and all revenues and 365.1 expenditures for these activities shall be recorded in the same 365.2 manner as other revenues and expenditures of the district. 365.3 (e) If the board takes charge of and controls 365.4 extracurricular activities,no such activity shall be365.5participated in bythe teachers or pupils in the district must 365.6 not participate in such activity, nor shall the school name or 365.7 any allied name be used in connection therewith, except by 365.8 consent and direction of the board. 365.9 Sec. 82. Minnesota Statutes 1996, section 123.38, 365.10 subdivision 3, is amended to read: 365.11 Subd. 3. [INSURANCE.] The board may enter into a contract 365.12 providing for the payment of cash benefits or the rendering or 365.13 payment of hospital and medical benefits, or both to school 365.14 children injured while participating in activities of the 365.15 school, such. The contracttoentered into by the board may 365.16 make the payment of such benefits or the rendering thereof the 365.17 direct and sole obligation of the association or company 365.18 entering into such contract with the district. 365.19 If the board deems it advisable, it may authorize employees 365.20 to collect fees from the pupils enrolled in said school who are 365.21 to be or are covered by such contract, and to make payment of 365.22 the premium or other charge for such contract or protection. 365.23 The payment of such premium or other charge may be made from 365.24 funds received from the federal government or from the state or 365.25 any governmental subdivision thereof, or from funds derived by a 365.26 tax levy or the issuance of bonds. 365.27 The child's payment of any fees, premium or other chargeby365.28such childshall not thereby make the district liable for any 365.29 injuries incurred from such school activities. 365.30 The state board of education may purchase medical insurance 365.31 coverage for the benefit of students of the Minnesota state 365.32 academy for the deaf or the Minnesota state academy for the 365.33 blind in the same manner and with the same effect as a school 365.34 district board may do for its students under this subdivision. 365.35 Sec. 83. Minnesota Statutes 1996, section 123.39, 365.36 subdivision 1, is amended to read: 366.1 Subdivision 1. [AUTHORITY TO TRANSPORT PUPILS.] The board 366.2 may provide for the transportation of pupils to and from school 366.3 and for any other purpose. The board may also provide for the 366.4 transportation of pupils to schools in other districts for 366.5 grades and departments not maintained in the district, including 366.6 high school, at the expense of the district, when funds are 366.7 available therefor and if agreeable to the district to which it 366.8 is proposed to transport the pupils, for the whole or a part of 366.9 the school year, as it may deem advisable, and subject to its 366.10 rules. In anyschooldistrict, the boardshallmust arrange for 366.11 the attendance of all pupils living two miles or more from the 366.12 school, except pupils whose transportation privileges have been 366.13 revoked under section 123.805, subdivision 1, clause (6), or 366.14 123.7991, paragraph (b), through suitable provision. The 366.15 district may provide for the transportation of orthroughthe 366.16 boarding and rooming of the pupils who may be more economically 366.17 and conveniently provided for by that means. The boardshall366.18 must provide transportation to and from the home of a child with 366.19 a disability not yet enrolled in kindergarten when special 366.20 instruction and services under sections 120.17 and 120.1701 are 366.21 provided in a location other than in the child's home. When 366.22 transportation is provided, scheduling of routes, establishment 366.23 of the location of bus stops, manner and method of 366.24 transportation, control and discipline of school children and 366.25 any other matter relating theretoshallmust be within the sole 366.26 discretion, control, and management of theschoolboard. The 366.27 district may provide for the transportation of pupils or expend 366.28 a reasonable amount for room and board of pupils whose 366.29 attendance at school can more economically and conveniently be 366.30 provided for by that means or who attend school in a building 366.31 rented or leased by a district within the confines of an 366.32 adjacent district. 366.33 Sec. 84. Minnesota Statutes 1996, section 123.39, 366.34 subdivision 2, is amended to read: 366.35 Subd. 2. [TRANSPORTATION SERVICES CONTRACTS.] The board 366.36 may contract for the furnishing of authorized transportation 367.1 under rules established by the commissionerof children,367.2families, and learning, and may purchase gasoline and furnish 367.3 same to a contract carrier for use in the performance of a 367.4 contract with the school district for transportation of school 367.5 children to and from school. 367.6 Sec. 85. Minnesota Statutes 1996, section 123.39, 367.7 subdivision 8, is amended to read: 367.8 Subd. 8. [AUTHORITY TO RENT BUSES.] The board may rent a 367.9 bus owned by theschooldistrict excluding a motor-coach bus to 367.10 any person for any lawful purpose. Bus rentalshallmust not 367.11 interfere with the transportation of pupils by the district. A 367.12 lessee may use and operate the bus without payment of a motor 367.13 vehicle tax. The lessee is liable for any claims for injuries 367.14 and damages arising out of the use and operation of a bus leased 367.15 from the district. Except as provided in subdivision 9a, the 367.16 lessee shall procure insurance at the lessee's expense 367.17 protecting the board and the district against claims for 367.18 injuries and damages arising out of the use and operation of the 367.19 bus. 367.20 Sec. 86. Minnesota Statutes 1996, section 123.39, 367.21 subdivision 8a, is amended to read: 367.22 Subd. 8a. [NONPUPIL TRANSPORTATION; INSURANCE.] 367.23 Notwithstanding the provisions of section 221.021, any public 367.24 school district or school bus contractor providing 367.25 transportation services to aschooldistrict on a regular basis 367.26 in this state may operate school buses, excluding motor coach 367.27 buses, for the purpose of providing transportation to nonpupils 367.28 of the school district attending school events, as defined in 367.29 section 123.38, subdivision 2a or 2b, provided that no carrier 367.30 having a charter carrier permit has its principal office and 367.31 place of business or bus garage within 12 miles of the principal 367.32 office of theschooldistrict.SchoolDistrict owned buses and 367.33 the operators thereof shall otherwise comply with the provisions 367.34 of this section and the rules of the state board of education 367.35 and shall be insured in at least the amounts stated in section 367.36 466.04, subdivision 1. In all cases the total cost of providing 368.1 such services, as determined by sound accounting procedures, 368.2 shall be paid by charges made against those using the buses. 368.3 Sec. 87. Minnesota Statutes 1996, section 123.39, 368.4 subdivision 8b, is amended to read: 368.5 Subd. 8b. [TRANSPORTATION OF ANY PERSON.]SchoolDistricts 368.6 may useschooldistrict owned or contractor operated school 368.7 buses to provide transportation along regular school bus routes 368.8 on a space available basis for any person, provided that this. 368.9 Such use of a busdoesmust not interfere with the 368.10 transportation of pupils to and from school or other authorized 368.11 transportation of pupils. In all cases, the total additional 368.12 cost of providing these services, as determined by sound 368.13 accounting procedures,shallmust be paid by charges made 368.14 against those using these services or some third-party payor. 368.15 In no case shall the additional cost of this transportation be 368.16 paid by theschooldistrict. 368.17 The provisions of section 65B.47, subdivision 4, shall be 368.18 applicable to any person being transported pursuant to this 368.19 subdivision. 368.20 Sec. 88. Minnesota Statutes 1996, section 123.39, 368.21 subdivision 8c, is amended to read: 368.22 Subd. 8c. [PART-TIME SECONDARY STUDENTS.]SchoolDistricts 368.23 may provide bus transportation along regular school bus routes 368.24 on a space available basis for part-time students enrolled in 368.25 secondary classes pursuant to section 123.35, subdivisions 8a, 368.26 8b and 8c, provided that this. Such use of a busdoesmust not 368.27 interfere with the transportation of pupils to and from school 368.28 or other authorized transportation of pupils. The total 368.29 additional cost of providing these services, as determined by 368.30 sound accounting procedures, shall be paid by charges made 368.31 against those using the services or some third-party payor. 368.32 Sec. 89. Minnesota Statutes 1996, section 123.39, 368.33 subdivision 8d, is amended to read: 368.34 Subd. 8d. [EARLY CHILDHOOD FAMILY EDUCATION PARTICIPANTS.] 368.35SchoolDistricts may provide bus transportation along regular 368.36 school bus routes when space is available for participants in 369.1 early childhood family education programs and learning readiness 369.2 programs if these services do not result in an increase in the 369.3 district's expenditures for transportation. The costs allocated 369.4 to these services, as determined by generally accepted 369.5 accounting principles, shall be considered part of the 369.6 authorized cost for regular transportation for the purposes of 369.7 section 124.225. 369.8 Sec. 90. Minnesota Statutes 1996, section 123.39, 369.9 subdivision 8e, is amended to read: 369.10 Subd. 8e. [AREA LEARNING CENTER PUPILS.]SchoolDistricts 369.11 may provide bus transportation along school bus routes 369.12 established to provide nonregular transportation as defined in 369.13 section 124.225, subdivision 1, paragraph (e)(2)(ii), when space 369.14 is available, for pupils attending programs at an area learning 369.15 center. The transportation is only permitted between schools 369.16 and if it does not increase the district's expenditures for 369.17 transportation. The cost of these services shall be considered 369.18 part of the authorized cost for nonregular transportation for 369.19 the purpose of section 124.225. 369.20 Sec. 91. Minnesota Statutes 1996, section 123.39, 369.21 subdivision 9a, is amended to read: 369.22 Subd. 9a. [INSURANCE; INDEMNITY.] If a school board has 369.23 obtained insurance pursuant to subdivision 9 or section 466.06, 369.24 it may also obtain and pay for insurance coverage to indemnify a 369.25 lessee and to protect the board and the district, in any amount 369.26 not exceeding the limits of coverage provided for the insurance 369.27 obtained pursuant to subdivision 9 or section 466.06 against 369.28 claims for injuries and damages arising out of the use and 369.29 operation of a district-owned bus while it is leased or rented 369.30 to the lessee pursuant to subdivision 8. The rental charge 369.31 shall include the cost of this additional insurance coverage. 369.32 The procurement of this additional insurance coverage 369.33 constitutes a waiver of the defense of governmental immunity to 369.34 the extent of the additional coverage but has no effect on the 369.35 liability of the board, theschooldistrict, or its employees 369.36 beyond the coverage so provided. 370.1 Sec. 92. Minnesota Statutes 1996, section 123.39, 370.2 subdivision 11, is amended to read: 370.3 Subd. 11. [INSURANCE; SCHOOL SAFETY PATROL.] The board may 370.4 provide and pay the premiums for insurance against injuries 370.5 resulting to its pupils while assigned to and acting on a school 370.6 safety patrol, which. Such insurance may provide for the 370.7 payment of either cash benefits to such injured pupil or for the 370.8 payment of hospital and medical benefits to or for such injured 370.9 pupil, or both. Nothing herein shall be construed toin any way370.10 make the district liable for such injuries. 370.11 Sec. 93. Minnesota Statutes 1996, section 123.39, 370.12 subdivision 12, is amended to read: 370.13 Subd. 12. [SNOW REMOVAL.] The board may enter into 370.14 contracts for the removal of snow from roads used for regular 370.15 bus routes transporting pupils to and from school either within 370.16 orwithoutoutside the district. 370.17 Sec. 94. Minnesota Statutes 1996, section 123.39, 370.18 subdivision 13, is amended to read: 370.19 Subd. 13. [HANDICAPPED PERSON TRANSPORT TO DEVELOPMENTAL 370.20 ACHIEVEMENT CENTER.] The boardshallmust contract with any 370.21 licensed developmental achievement center attended by a resident 370.22 handicapped person who fulfills the eligibility requirements of 370.23 section 252.23, subdivision 1, to transport the resident 370.24 handicapped person to the developmental achievement center in 370.25 return for payment by the center of the cost of the 370.26 transportation, if transportation by the board is in the best 370.27 interest of the handicapped person and is not unreasonably 370.28 burdensome to the district and if a less expensive, reasonable, 370.29 alternative means of transporting the handicapped person does 370.30 not exist. If the board and the developmental achievement 370.31 center are unable to agree to a contract, either the board or 370.32 the center may appeal to the commissionerof children, families,370.33and learningto resolve the conflict. All decisions of the 370.34 commissioner shall be final and binding upon the board and the 370.35 center. 370.36 Sec. 95. Minnesota Statutes 1996, section 123.39, 371.1 subdivision 14, is amended to read: 371.2 Subd. 14. [CUSTODIAL PARENT TRANSPORTATION.] The board may 371.3 provide transportation for a pupil who is a custodial parent and 371.4 that pupil's child between the pupil's home and a child care 371.5 provider and between the provider and the school. The 371.6 boardshallmust establish criteria for transportation it 371.7 provides according to this subdivision. 371.8 Sec. 96. Minnesota Statutes 1996, section 123.39, 371.9 subdivision 15, is amended to read: 371.10 Subd. 15. [PUPIL TRANSPORT ON STAFF DEVELOPMENT DAYS.] A 371.11schooldistrict may provide bus transportation between home and 371.12 school for pupils on days devoted to parent-teacher conferences, 371.13 teacher's workshops, or other staff development opportunities. 371.14 If approved by the commissioner as part of a program of 371.15 educational improvement, the cost of providing this 371.16 transportation, as determined by generally accepted accounting 371.17 principles, must be considered part of the authorized cost for 371.18 regular transportation for the purposes of section 124.225. The 371.19 commissioner shall approve inclusion of these costs in the 371.20 regular transportation category only if the total number of 371.21 instructional hours in the school year divided by the total 371.22 number of days for which transportation is provided equals or 371.23 exceeds the number of instructional hours per day prescribed in 371.24 the rules of the state board. 371.25 Sec. 97. Minnesota Statutes 1996, section 123.39, 371.26 subdivision 16, is amended to read: 371.27 Subd. 16. [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 371.28SchoolDistricts may provide bus transportation along school bus 371.29 routes established to provide nonregular transportation as 371.30 defined in section 124.225, subdivision 1, paragraph (c), clause 371.31 (2), when space is available, for pupils attending programs at a 371.32 post-secondary institution under the post-secondary enrollment 371.33 options program. The transportation is permitted only if it 371.34 does not increase the district's expenditures for 371.35 transportation. Fees collected for this service under section 371.36 120.73, subdivision 1, paragraph (m), shall be subtracted from 372.1 the authorized cost for nonregular transportation for the 372.2 purpose of section 124.225. 372.3 Sec. 98. Minnesota Statutes 1996, section 123.40, 372.4 subdivision 1, is amended to read: 372.5 Subdivision 1. [PAYMENT OF JUST CLAIMS.] The boardshall372.6 must provide for the payment of all just claims against the 372.7 district in cases provided by law. 372.8 Sec. 99. Minnesota Statutes 1996, section 123.40, 372.9 subdivision 2, is amended to read: 372.10 Subd. 2. [PROSECUTE AND DEFEND ACTIONS.] In all proper 372.11 cases, the boardshallmust prosecute and defend actions by or 372.12 against the district. 372.13 Sec. 100. Minnesota Statutes 1996, section 123.40, 372.14 subdivision 8, is amended to read: 372.15 Subd. 8. [REMOVAL OF UNAUTHORIZED VEHICLES.] The board may 372.16 authorize a representative to move unauthorized vehicles parked 372.17 on school district property, or require the driver or other 372.18 person in charge of the vehicle to move the same off school 372.19 district property. 372.20 When such representative finds such a vehicle unattended 372.21 uponschooldistrict premises, such representative is hereby 372.22 authorized to provide for the removal of such vehicle and remove 372.23 the same to the nearest convenient garage or other place of 372.24 safety off ofschooldistrict property. Such vehicle shall be 372.25 moved at the expense of the owner or operator. 372.26 Sec. 101. Minnesota Statutes 1996, section 123.41, is 372.27 amended to read: 372.28 123.41 [LIABILITY INSURANCE,; OFFICERS AND EMPLOYEES.] 372.29 The governing body of any independent school district may 372.30 procure insurance against liability of theschooldistrict or of 372.31 its officers and employees for damages resulting from wrongful 372.32 acts and omissions of theschooldistrict and its officers and 372.33 employees, whether the acts or omissions relate to governmental 372.34 or proprietary functions of theschooldistrict. Insofar as 372.35 this insurance relates to governmental functions of theschool372.36 district, the policy of insurance shall contain a provision 373.1under whichrequiring the insurance companyagreesto waive the 373.2 defense of governmental immunity up to the limits of the policy 373.3 unless theschooldistrict consents to the assertion of that 373.4 defense. 373.5 Sec. 102. Minnesota Statutes 1996, section 123.63, is 373.6 amended to read: 373.7 123.63 [EMINENT DOMAIN.] 373.8 In any municipal corporation or district in this state 373.9 where the governing body or board has the right, power, and 373.10 authority to purchase sites for school buildings without 373.11 authorization by the voters at a regular or special meeting or 373.12 election called for that purpose, such governing body or school 373.13 board shall have the right, power, and authority to condemn 373.14 lands under the right of eminent domain for sites and grounds 373.15 for public school buildingsand. The governing body or board 373.16 shall exercise such power and authorityshall be exercised under373.17andpursuant to the terms and provisions of chapter 117. Any 373.18 such corporation orschooldistrict shall have the right, upon 373.19 the filing of the award of the commissioners provided for in 373.20 chapter 117, and upon giving the notice therein required of the 373.21 filing of such award, to enter upon and appropriate the lands so 373.22 condemned without giving of any bond, but. In case of such 373.23 entry and appropriation, such corporation orschooldistrict 373.24 shall be bound absolutely to pay all damages awarded, either by 373.25 the commissioners or by the court upon appeal therefrom, 373.26 together with all costs and expenses adjudged against it therein 373.27 within the time specified in chapter 117. In case any such 373.28 corporation orschooldistrict shall appeal from the award of 373.29 commissioners appointed pursuant to any such condemnation 373.30 proceedings, such corporation or school district shall not be 373.31 required to give or file any appeal bond therein. 373.32 Sec. 103. Minnesota Statutes 1996, section 123.64, is 373.33 amended to read: 373.34 123.64 [AGRICULTURAL EDUCATION.] 373.35The board ofIn any district in which instruction in 373.36 agriculture is afforded, the board is authorized and empowered 374.1 to purchase or otherwise acquire by condemnation proceedings as 374.2 provided for acquiring schoolhouse sites in the name and in 374.3 behalf of such district, a suitable tract of land either within 374.4 orwithoutoutside of the limits of such district to be used for 374.5 the purpose of instruction, experimentation, and demonstration 374.6 in agriculture. The provisions of this section shall apply as 374.7 well to districts organized under special acts as under the 374.8 general laws, notwithstanding any provisions or restrictions in 374.9 the laws under which thesamedistricts are organized. 374.10 Sec. 104. Minnesota Statutes 1996, section 123.66, is 374.11 amended to read: 374.12 123.66 [RECORDS AS EVIDENCE.] 374.13 The records of all districts and boards and all transcripts 374.14 thereof, or any part thereof, certified by the clerk or other 374.15 officer having custodythereofof the records or transcripts, 374.16 shall be prima facie evidence of the factsthereinstatedandin 374.17 the records or transcripts. All records, books, and papers of 374.18suchthe district or board shall be subject to the inspection of 374.19 any voter of the district. 374.20 Sec. 105. Minnesota Statutes 1996, section 123.681, is 374.21 amended to read: 374.22 123.681 [SALE AT AUCTION.] 374.23 Notwithstanding sections 123.37, subdivision 1, 471.345 or 374.24 any other law, the board of a school district or of a 374.25 cooperative center for vocational education may, in lieu of 374.26 advertising for bids, sell at public auction to the highest 374.27 responsible bidder a building constructed or to be constructed 374.28 by a secondary or post-secondary school student or class as a 374.29 school assignment. A board shall publish notice of a sale at 374.30 least two weeks before the sale in the official newspaper of the 374.31 district, or in the case of a cooperative center, in the 374.32 official newspapers of each of the member districts, and may, at 374.33 its discretion, publish additional notice in the official paper 374.34 or elsewhere. A building may be withdrawn from sale prior to 374.35 the completion of the sale unless the auction has been announced 374.36 to be without reserve. If the sale is made at public auction, a 375.1 duly licensed auctioneershallmust be retained to conduct the 375.2 sale. The auctioneer shall be paid from the proceeds of the 375.3 sale or from any funds available to the board which are not 375.4 otherwise restricted or encumbered. 375.5 Sec. 106. Minnesota Statutes 1996, section 123.71, is 375.6 amended to read: 375.7 123.71 [PUBLICATION OF FINANCIAL INFORMATION.] 375.8 Subdivision 1. [BUDGETS.] By October 1, everyschoolboard 375.9shall, no later than October 1,must publish revenue and 375.10 expenditure budgets for the current year and the actual 375.11 revenues, expenditures, fund balances for the prior year and 375.12 projected fund balances for the current year in a form 375.13 prescribed by the commissioner. The forms prescribedshallmust 375.14 be designed so that year to year comparisons of revenue, 375.15 expenditures and fund balances can be made. These budgets, 375.16 reports of revenue, expenditures and fund balancesshallmust be 375.17 published in a qualified newspaper of general circulation in the 375.18 district. 375.19 Subd. 2. [DEBT SUMMARY.]It shallThe board must also 375.20 publish at the same time a summary of bonds outstanding, paid, 375.21 and sold; a summary of orders not paid for want of funds; 375.22 certificates of indebtedness for the year ending June 30; the 375.23 statutory operating debt of the district as defined and 375.24 certified pursuant to section 121.914; and the balance amount of 375.25 the reserved fund balance reserve account for purposes of 375.26 statutory operating debt reduction established pursuant to 375.27 sections 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, 375.28 and 124.918. 375.29 Subd. 3. [BUDGET INSPECTION.] A statementshallmust be 375.30 included in the publication that the complete budget in detail 375.31 may be inspected by any resident of the district upon request to 375.32 the chief school administrator. 375.33 Subd. 4. [COST PER PUPIL.]It shallThe board must also 375.34 publish at the same time the average cost per pupil in average 375.35 daily membership educated in that district in the preceding 375.36 year. This computationshallmust be made exclusive of debt 376.1 service or capital outlay costs. 376.2 Sec. 107. Minnesota Statutes 1996, section 123.72, is 376.3 amended to read: 376.4 123.72 [MEDICAL INSURANCE PREMIUMS FOR RETIRED.] 376.5 Theschoolboard of any independent school district may 376.6 expend funds to pay premiums on hospitalization and major 376.7 medical insurance coverage for officers and employees who retire 376.8 prior to age 65. 376.9 Sec. 108. Minnesota Statutes 1996, section 123.75, 376.10 subdivision 2, is amended to read: 376.11 Subd. 2. [AUTHORITY.] Eachschooldistrict may develop a 376.12 fingerprinting program for pupils and children who reside in the 376.13 district. The principal or chief administrative officer of a 376.14 nonpublic school may develop a fingerprinting program for pupils 376.15 of the school. If developed, the program must be developed in 376.16 conjunction with law enforcement agencies having jurisdiction 376.17 within theschooldistrict or the place where the nonpublic 376.18 school is located. The law enforcement agencies must cooperate 376.19 fully with theschooldistrict or the nonpublic school in the 376.20 development of its fingerprinting program. 376.21 Sec. 109. Minnesota Statutes 1996, section 123.75, 376.22 subdivision 3, is amended to read: 376.23 Subd. 3. [LIMITATIONS AND PROCEDURES.] If developed, the 376.24 fingerprinting program may be developed only for the purpose of 376.25 assisting in the location and identification of missing 376.26 children, and must be operated according to the following 376.27 procedures: 376.28 (a) No child may be required to participate in the program. 376.29 (b) Before a child may participate in the program, the 376.30 child's parents, guardian, legal custodian, or other person 376.31 responsible for the child must authorize the child's 376.32 participation by signing a form developed by theschooldistrict 376.33 or the principal or chief administrative officer of the 376.34 nonpublic school. 376.35 (c) Fingerprinting of children must be done by law 376.36 enforcement personnel on fingerprint cards provided to the 377.1schooldistrict or nonpublic school by the commissioner of 377.2 public safety or on fingerprint cards acquired elsewhere. 377.3 (d) The school must give the fingerprint card to the 377.4 child's parents, guardian, legal custodian, or other person 377.5 responsible for the child. No copy of the fingerprint card may 377.6 be retained by the law enforcement agency, school, orschool377.7 district. 377.8 (e) The child's name, sex, hair and eye color, height, 377.9 weight, and date and place of birth must be written on the 377.10 fingerprint card. 377.11SchoolDistricts and nonpublic schools that develop 377.12 fingerprinting programs under this section shall offer them on a 377.13 periodic basis, and shall notify parents, guardians, legal 377.14 custodians, and residents of the district or communities served 377.15 by the school of the program and its purpose. Notification may 377.16 be made by means of memoranda, letters, newspaper articles, or 377.17 other reasonable means. 377.18 Sec. 110. Minnesota Statutes 1996, section 123.75, 377.19 subdivision 5, is amended to read: 377.20 Subd. 5. [OTHER FINGERPRINTING PROGRAMS UNAFFECTED.] This 377.21 section does not apply to fingerprinting programs for children 377.22 that are provided by private organizations other than nonpublic 377.23 schools, or governmental entities other thanschooldistricts. 377.24 Sec. 111. Minnesota Statutes 1996, section 123.751, 377.25 subdivision 1, is amended to read: 377.26 Subdivision 1. [FLAG RECORD UPON CERTAIN NOTIFICATION.] 377.27 Aschooldistrictshallmust flag the record of a pupil who is 377.28 currently or was previously enrolled in the district if a law 377.29 enforcement agency notifies the district of the pupil's 377.30 disappearance. The flag must be made so that, if a copy of or 377.31 information regarding the pupil's record is requested, the 377.32 district is aware that the record is that of a missing pupil. 377.33 Sec. 112. Minnesota Statutes 1996, section 123.751, 377.34 subdivision 2, is amended to read: 377.35 Subd. 2. [DISTRICT NOTIFICATION WHEN RECORDS ARE 377.36 REQUESTED.] When the district provides a copy of the pupil's 378.1 record or other information concerning the pupil whose record is 378.2 flagged, the districtshallmust notify the law enforcement 378.3 agency that notified the district of the pupil's disappearance 378.4 of every inquiry concerning the record. The districtshallmust 378.5 also provide a copy to the law enforcement agency of a written 378.6 request for information concerning the record. 378.7 Sec. 113. Minnesota Statutes 1996, section 123.751, 378.8 subdivision 3, is amended to read: 378.9 Subd. 3. [RECORDS UPON SCHOOL DISTRICT TRANSFER.] When a 378.10 pupil transfers from one district to another, the receiving 378.11 district shall attempt to obtain, within 30 days of the pupil's 378.12 enrollment, the pupil's record from the district from which the 378.13 pupil has transferred. If the pupil's parent, custodian, or 378.14 guardian provides a copy of the pupil's record from the district 378.15 from which the pupil has transferred, the receiving district 378.16shallmust request, within 30 days of the pupil's enrollment, 378.17 written verification of the pupil's record by contacting the 378.18 district named on the transferring pupil's record. Information 378.19 received by aschooldistrict indicating that the transferring 378.20 pupil is a missing child must be reported by the district to the 378.21 department of public safety. 378.22 Sec. 114. Minnesota Statutes 1996, section 124.06, is 378.23 amended to read: 378.24 124.06 [INSUFFICIENT FUNDS TO PAY ORDERS.] 378.25 (a) In the event that a district or a cooperative unit 378.26 defined in section 123.35, subdivision 19b, has insufficient 378.27 funds to pay its usual lawful current obligations, subject to 378.28 section 471.69, the board may enter into agreements with banks 378.29 or any person to take its orders. Any order drawn, after having 378.30 been presented to the treasurer for payment and not paid for 378.31 want of funds shall be endorsed by the treasurer by putting on 378.32 the back thereof the words "not paid for want of funds," giving 378.33 the date of endorsement and signed by the treasurer. A record 378.34 of such presentment, nonpayment and endorsement shall be made by 378.35 the treasurer. The treasurer shall serve a written notice upon 378.36 the payee or the payee's assignee, personally, or by mail, when 379.1 the treasurer is prepared to pay such orders; such. The notice 379.2 may be directed to the payee or the payee's assignee at the 379.3 address given in writing by such payee or assignee to such 379.4 treasurer, at any time prior to the service of such notice. No 379.5 order shall draw any interest if such address is not given when 379.6 the same is unknown to the treasurer, and no order shall draw 379.7 any interest after the service of such notice. 379.8 (b) A district may enter, subject to section 471.69, into a 379.9 line of credit agreement with a financial institution. The 379.10 amount of credit available must not exceed 95 percent of average 379.11 expenditure per month of operating expenditures in the previous 379.12 fiscal year. Any amount advanced must be repaid no later than 379.13 45 days after the day of advancement. 379.14 Sec. 115. Minnesota Statutes 1996, section 124.07, 379.15 subdivision 2, is amended to read: 379.16 Subd. 2. [TITLE TO BE HELD BY DISTRICT.] The district must 379.17 hold title to lands or interests so acquiredshall be held by379.18the district. The district must sell each tract or portion 379.19shall be sold by the districtas soon as there may be realized 379.20 the fair value as determined by such board. Any such sale may 379.21 be authorized by resolution of the board, and may be made for 379.22 cash, or for part cash and the deferred balance secured by 379.23 contract for deed or purchase money mortgage, on such terms as 379.24 the board approves. Conveyances, contracts, or other 379.25 instruments evidencing any sale shall be executed by the chair 379.26 and the clerk of the board. Lands so acquired and held for 379.27 resale shall be deemed public lands used for exclusively public 379.28 purposes and as such shall be exempt from taxation. 379.29 Sec. 116. Minnesota Statutes 1996, section 124.63, is 379.30 amended to read: 379.31 124.63 [NATIONAL FOREST LAND FUNDS, HANDLING AND 379.32 DISPOSITION.] 379.33AnyA county board may place the money, or any part379.34thereof,received by such county from the federal government for 379.35 and on account of any national forest lands situatedthereinin 379.36 the county into a special fund to be disbursed and paid over to 380.1 any districtnow or hereaftermaintaining and operating any 380.2 school wholly or partly within an areanow or hereafter380.3 constituting a part of any auxiliary or state forest.Such380.4action shall be taken byThe boardbymust adopt a resolution 380.5duly adopted by it, whichto take such action. The resolution 380.6shallmust specify the terms and conditions under whichthisthe 380.7 money shall besopaid over and disbursed to any district. 380.8 Sec. 117. Minnesota Statutes 1996, section 126.12, is 380.9 amended to read: 380.10 126.12 [SCHOOL CALENDAR.] 380.11Subdivision 1.Except for learning programs during summer, 380.12 flexible learning year programs authorized under sections 120.59 380.13 to 120.67, and learning year programs under section 121.585, a 380.14schooldistrictshallmust not commence an elementary or 380.15 secondary school year prior to Labor Day. Days which are 380.16 devoted to teachers' workshops may be held before Labor Day. 380.17 Districts that enter into cooperative agreements are encouraged 380.18 to adopt similar school calendars. 380.19 Sec. 118. Minnesota Statutes 1996, section 126.13, is 380.20 amended to read: 380.21 126.13 [CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.] 380.22 The governing body of any district may contract with any of 380.23 the teachersthereofof the district for the conduct of schools, 380.24 and may conduct schools, on either, or any, of the following 380.25 holidays, provided that a clause to this effect is inserted in 380.26 the teacher's contract: Martin Luther King's birthday, 380.27 Lincoln's and Washington's birthdays, Columbus Day and Veterans' 380.28 Day, provided that. On Martin Luther King's birthday, 380.29 Washington's birthday, Lincoln's birthday, and Veterans' Day at 380.30 least one hour of the school program must be devoted to a 380.31 patriotic observance of the day. 380.32 Sec. 119. Minnesota Statutes 1996, section 126.69, 380.33 subdivision 1, is amended to read: 380.34 Subdivision 1. [PROGRAM GOALS.] The departmentof380.35children, families, and learning, in consultation with the state 380.36 curriculum advisory committee, must develop guidelines and model 381.1 plans for parental involvement programs that will: 381.2 (1) engage the interests and talents of parents or 381.3 guardians in recognizing and meeting the emotional, 381.4 intellectual, and physical needs of their school-age children; 381.5 (2) promote healthy self-concepts among parents or 381.6 guardians and other family members; 381.7 (3) offer parents or guardians a chance to share and learn 381.8 about educational skills, techniques, and ideas; 381.9 (4) provide creative learning experiences for parents or 381.10 guardians and their school-age children, including involvement 381.11 from parents or guardians of color; 381.12 (5) encourage parents to actively participate in their 381.13 district's curriculum advisory committee under section 126.666 381.14 in order to assist the school board in improving children's 381.15 education programs; and 381.16 (6) encourage parents to help in promoting school 381.17 desegregation/integration. 381.18 Sec. 120. Minnesota Statutes 1996, section 127.02, is 381.19 amended to read: 381.20 127.02 [ACTIONS BY DISTRICTS.] 381.21 Anyschoolboard may prosecute actions in the name of the 381.22 district in the following cases: 381.23 (1) On a contract made with the district, or with the board 381.24 in its official capacity; 381.25 (2) To enforce a liability, or a duty enjoined by law, in 381.26 its favor or in favor of the district; 381.27 (3) To recover a penalty or forfeiture given by law to it 381.28 or to the district; or 381.29 (4) To recover damages for an injury to the rights or 381.30 property of the district. 381.31 Sec. 121. Minnesota Statutes 1996, section 127.03, is 381.32 amended to read: 381.33 127.03 [ACTIONS AGAINST DISTRICTS AND TEACHERS.] 381.34Subdivision 1.(a) An action may be brought against any 381.35schooldistrict, either upon a contract made with the district 381.36 or its board, in its official capacity and within the scope of 382.1 its authority, or for an injury to the rights of the plaintiff 382.2 arising from some act or omission of such board, whether. The 382.3 action may be brought against the district even if the members 382.4 of the board making the contract, or guilty of the act or 382.5 omission complained of,be stillare no longer in officeor not. 382.6Subd. 2.(b) Upon written request of the teacher involved, 382.7 anyschooldistrict, however organized,shallmust provide legal 382.8 counsel for any school teacher against whom claim is made or 382.9 action is brought for recovery of damages in any tort action 382.10 involving physical injury to any person or property or for 382.11 wrongful death arising out of or in connection with the 382.12 employment of such teacher withsuch schoolthe district. The 382.13 choice ofsuchlegal counsel shall be made only after 382.14 consultation with the teacher. Provision of counsel under 382.15 thissubdivisionparagraph shall not be construed to render 382.16 theschooldistrict liable for its torts, except as otherwise 382.17 provided by law; or for reimbursement of costs of counsel 382.18 provided to the teacher pursuant to the contract obligation of 382.19 another or otherwise than under thissubdivisionparagraph; or 382.20 for payment of any judgments or any other costs or disbursements 382.21 in connectiontherewithwith a judgment where the judgment, cost 382.22 or disbursement is against the teacher and not against the 382.23 school district. 382.24Subd. 3. [IMMUNITY FROM CIVIL LIABILITY.](c) It is a 382.25 defense to a civil action for damages against a school official, 382.26 as defined in section 609.2231, subdivision 5, to prove that the 382.27 force used by the official was reasonable, was in the exercise 382.28 of lawful authority, and was necessary under the circumstances 382.29 to restrain the pupil or to prevent bodily harm or death to 382.30 another. 382.31 Sec. 122. Minnesota Statutes 1996, section 127.04, is 382.32 amended to read: 382.33 127.04 [JUDGMENT PAID BY TREASURER.] 382.34 Except ashereinafterprovided in this section, no 382.35 execution shall issue upon any judgment against aschool382.36 district for the recovery of money. Unless thesame bejudgment 383.1 is stayed by appeal, the treasurer shall pay such judgment, upon 383.2 presentation of a certified copythereofof the judgment, 383.3 ifthere isthe district has sufficient moneyof the district383.4 not otherwise appropriated. A treasurer who fails todo sopay 383.5 the judgment shall be personally liable for the amount, unless 383.6 the collectionbe afterwardsis stayed afterwards. 383.7 Sec. 123. [REPEALER.] 383.8 Minnesota Statutes 1996, section 123.35, subdivision 10, is 383.9 repealed. 383.10 Sec. 124. [INSTRUCTION TO REVISOR.] 383.11 The revisor of statutes shall renumber each section of 383.12 Minnesota Statutes listed in column A with the number listed in 383.13 column B. The revisor shall also make necessary cross-reference 383.14 changes consistent with the renumbering. 383.15 Column A Column B 383.16 123.01 123A.01 383.17 123.66 123A.03 383.18 123.11 123A.05 383.19 123.12, subd. 1 123A.06, subd. 1 383.20 subd. 2 subd. 2 383.21 subd. 9 subd. 3 383.22 subd. 14 subd. 4 383.23 123.13, subd. 2 123A.07 383.24 123.15 123A.08 383.25 123.21 123A.09 383.26 123.33, subd. 1 123A.13, subd. 1 383.27 subd. 2 subd. 3 383.28 subd. 2a subd. 2 383.29 subd. 3 subd. 4 383.30 subd. 4 subd. 5 383.31 subd. 5 subd. 6 383.32 subd. 6 subd. 7 383.33 subd. 7 subd. 8 383.34 subd. 8 subd. 9 383.35 subd. 11 subd. 10 383.36 subd. 11a subd. 11 384.1 subd. 12 subd. 12 384.2 123.71 123A.14 384.3 123.335 123A.15 384.4 124.06 123A.16 384.5 124.07 123A.17 384.6 123.34, subd. 1 123A.18, subd. 1 384.7 subd. 2 subd. 2 384.8 subd. 3 subd. 3 384.9 subd. 4 subd. 4 384.10 subd. 5 subd. 5 384.11 subd. 7 subd. 6 384.12 subd. 8 subd. 7 384.13 subd. 9 subd. 8 384.14 subd. 9a subd. 9 384.15 subd. 10 subd. 10 384.16 123.35, subd. 1 123A.19, subd. 1 384.17 subd. 2 subd. 2 384.18 subd. 3 subd. 7 384.19 subd. 4 subd. 8 384.20 subd. 6 subd. 14 384.21 subd. 7 subd. 9 384.22 subd. 9a subd. 10 384.23 subd. 9b subd. 11 384.24 subd. 11 subd. 13 384.25 subd. 12 subd. 15 384.26 subd. 15 subd. 18 384.27 subd. 18 subd. 12 384.28 subd. 19a subd. 3 384.29 subd. 19c subd. 4 384.30 subd. 20 subd. 20 384.31 123.72 123A.19, subd. 16 384.32 123.40, subd. 1 123A.19, subd. 17 384.33 subd. 2 subd. 19 384.34 subd. 3 subd. 6 384.35 subd. 8 subd. 5 384.36 123.41 123A.20 385.1 120.1045, subd. 1 123A.22, subd. 1 385.2 subd. 2 subd. 2 385.3 subd. 4 subd. 3 385.4 123.36, subd. 1 123A.25, subd. 1 385.5 subd. 5 subd. 2 385.6 subd. 7 subd. 3 385.7 subd. 10 subd. 4 385.8 subd. 11 subd. 5 385.9 subd. 13 subd. 6 385.10 subd. 14 subd. 7 385.11 subd. 15 subd. 8 385.12 123.37, subd. 1 123A.27, subd. 1 385.13 subd. 1a subd. 2 385.14 subd. 1b subd. 3 385.15 subd. 2 subd. 4 385.16 123.681 123A.29 385.17 123.38, subd. 1 123A.31, subd. 1 385.18 subd. 2 subd. 2 385.19 subd. 2a subd. 3 385.20 subd. 2b subd. 4 385.21 subd. 3 subd. 5 385.22 subd. 4 subd. 6 385.23 123.39, subd. 1 123A.33, subd. 1 385.24 subd. 2 subd. 2 385.25 subd. 4 subd. 3 385.26 subd. 5 subd. 4 385.27 subd. 6 subd. 5 385.28 subd. 7 subd. 6 385.29 subd. 8 subd. 7 385.30 subd. 8a subd. 8 385.31 subd. 8b subd. 9 385.32 subd. 8c subd. 10 385.33 subd. 8d subd. 11 385.34 subd. 8e subd. 12 385.35 subd. 9 subd. 13 385.36 subd. 9a subd. 14 386.1 subd. 10 subd. 15 386.2 subd. 11 subd. 16 386.3 subd. 12 subd. 17 386.4 subd. 13 subd. 18 386.5 subd. 14 subd. 19 386.6 subd. 15 subd. 20 386.7 subd. 16 subd. 21 386.8 127.02 123A.35 386.9 127.03 123A.36 386.10 127.04 123A.37 386.11 127.06 123A.38 386.12 126.12 123A.41 386.13 120.1015 123A.42 386.14 126.13 123A.43 386.15 120.59 123A.45 386.16 120.60 123A.46 386.17 120.61 123A.47 386.18 120.62 123A.48 386.19 120.63 123A.49 386.20 120.64 123A.50 386.21 120.66 123A.51 386.22 120.67 123A.52 386.23 121.585, subd. 1 123A.53, subd. 1 386.24 subd. 2 subd. 2 386.25 subd. 4 subd. 3 386.26 subd. 5 subd. 4 386.27 subd. 6 subd. 5 386.28 subd. 7 subd. 6 386.29 subd. 8 subd. 7 386.30 123.951 123A.55 386.31 124C.77 123A.57 386.32 126.69 123A.60 386.33 126.699 123A.61 386.34 123.97 123A.63 386.35 123.972 123A.64 386.36 123.51 123A.70 387.1 123.62 123A.72 387.2 123.63 123A.73 387.3 123.64 123A.74 387.4 124.63 123A.75 387.5 123.75 123A.80 387.6 123.751 123A.81 387.7 121.904, subd. 1 123A.85, subd. 1 387.8 subd. 2 subd. 2 387.9 subd. 3 subd. 3 387.10 subd. 4 subd. 4 387.11 subd. 4a subd. 5 387.12 subd. 4c subd. 6 387.13 subd. 11 subd. 7 387.14 subd. 12 subd. 8 387.15 subd. 13 subd. 9 387.16 subd. 14 subd. 10 387.17 121.906 123A.86 387.18 121.908, subd. 1 123A.87, subd. 1 387.19 subd. 2 subd. 2 387.20 subd. 3 subd. 3 387.21 subd. 3a subd. 4 387.22 subd. 5 subd. 5 387.23 subd. 6 subd. 6 387.24 121.911 123A.90 387.25 121.912, subd. 1 123A.91, subd. 1 387.26 subd. 1a subd. 2 387.27 subd. 1b subd. 3 387.28 subd. 2 subd. 4 387.29 subd. 3 subd. 5 387.30 subd. 4 subd. 6 387.31 subd. 5 subd. 7 387.32 subd. 6 subd. 8 387.33 121.9121, subd. 1 123A.92, subd. 1 387.34 subd. 2 subd. 2 387.35 subd. 4 subd. 3 387.36 121.914 123A.93 388.1 121.915 123A.94 388.2 121.917 123A.95 388.3 ARTICLE 7 388.4 CHAPTER 124D 388.5 BASIC EDUCATION FUNDING 388.6 Section 1. Minnesota Statutes 1996, section 123.76, is 388.7 amended to read: 388.8 123.76 [POLICY.] 388.9 In districts where the state provides aids for 388.10 transportation it is in the public interest to provide equality 388.11 of treatment in transporting school children of the state who 388.12 are required to attend elementary and secondary schools pursuant 388.13 to chapter 120, so that the health, welfare and safety ofsuch388.14 the children, while using the public highways of the state, 388.15 shall be protected. 388.16 School children attending any schools, complying with 388.17 section 120.101, are therefore entitled to the same rights and 388.18 privileges relating to transportation. 388.19 Sec. 2. Minnesota Statutes 1996, section 123.78, 388.20 subdivision 1a, is amended to read: 388.21 Subd. 1a. [NONPUBLIC SCHOOL STUDENTS.] (a) Theschool388.22 board of any local districtshallmust provide school bus 388.23 transportation to the district boundary for school children 388.24 residing in the district at least the same distance from a 388.25 nonpublic school actually attended in another district as public 388.26 school pupils are transported in the transporting district,. 388.27 Such transportation must be provided whether or not there is 388.28 another nonpublic school within the transporting district, if 388.29 the transportation is to schools maintaining grades or 388.30 departments not maintained in the district or if the attendance 388.31 of such children at school can more safely, economically, or 388.32 conveniently be provided for by such means. 388.33 (b) The school board of any local district may provide 388.34 school bus transportation to a nonpublic school in another 388.35 district for school children residing in the district and 388.36 attending that school, whether or not there is another nonpublic 389.1 school within the transporting district, if the transportation 389.2 is to schools maintaining grades or departments not maintained 389.3 in the district or if the attendance of such children at school 389.4 can more safely, economically, or conveniently be provided for 389.5 by such means. If the board transports children to a nonpublic 389.6 school located in another district, the nonpublic schoolshall389.7 must pay the cost of such transportation provided outside the 389.8 district boundaries. 389.9 Sec. 3. Minnesota Statutes 1996, section 123.78, 389.10 subdivision 2, is amended to read: 389.11 Subd. 2. [BOARD CONTROL.] When transportation is provided, 389.12 the scheduling of routes, manner and method of transportation, 389.13 control and discipline of school children and any other matter 389.14 relating thereto shall be within the sole discretion, control 389.15 and management of theschoolboard. 389.16 Sec. 4. Minnesota Statutes 1996, section 123.79, 389.17 subdivision 1, is amended to read: 389.18 Subdivision 1. [STATE AID.]SuchState aidsas aremade 389.19 available or appropriated shall be for the equal benefit of all 389.20 school children, and be disbursed in such manner as determined 389.21 by the board. 389.22 Sec. 5. Minnesota Statutes 1996, section 123.799, as 389.23 amended by Laws 1997, First Special Session chapter 4, article 389.24 12, section 2, is amended to read: 389.25 123.799 [STUDENT TRANSPORTATION SAFETY.] 389.26 Subdivision 1. [RESERVED REVENUE USE.] A districtshall389.27 must use the student transportation safety reserved revenue 389.28 under section 124.225, subdivision 7f, for providing student 389.29 transportation safety programs to enhance student conduct and 389.30 safety on the bus or when boarding and exiting the bus. A 389.31 district's student transportation policy must specify the 389.32 student transportation safety activities to be carried out under 389.33 this section. A district's student transportation safety 389.34 reserved revenue may only be used for the following purposes: 389.35 (1) to provide paid adult bus monitors, including training 389.36 and salary costs; 390.1 (2) to provide a volunteer bus monitor program, including 390.2 training costs and the cost of a program coordinator; 390.3 (3) to purchase or lease optional external public address 390.4 systems or video recording cameras for use on buses; 390.5 (4) to purchase new or retrofit existing school buses with 390.6 seatbelts or other occupant restraint systems after consultation 390.7 with and approval by the commissioner of public safety; and 390.8 (5) other activities or equipment that have been approved 390.9 by the commissioner of public safety. 390.10 Subd. 2. [REPORTING.] Districtsshallmust annually report 390.11 expenditures from the student transportation safety reserved 390.12 revenue to the commissionerof children, families, and learning,390.13 who shall provide the information to the school bus safety 390.14 advisory committee. 390.15 Sec. 6. Minnesota Statutes 1997 Supplement, section 390.16 123.7991, subdivision 2, is amended to read: 390.17 Subd. 2. [STUDENT TRAINING.] (a) Eachschooldistrict 390.18shallmust provide public school pupils enrolled in grades 390.19 kindergarten through 10 with age-appropriate school bus safety 390.20 training. The trainingshallmust be results-oriented and shall 390.21 consist of both classroom instruction and practical training 390.22 using a school bus. Upon completing the training, a student 390.23 shall be able to demonstrate knowledge and understanding of at 390.24 least the following competencies and concepts: 390.25 (1) transportation by school bus is a privilege and not a 390.26 right; 390.27 (2) district policies for student conduct and school bus 390.28 safety; 390.29 (3) appropriate conduct while on the school bus; 390.30 (4) the danger zones surrounding a school bus; 390.31 (5) procedures for safely boarding and leaving a school 390.32 bus; 390.33 (6) procedures for safe street or road crossing; and 390.34 (7) school bus evacuation and other emergency procedures. 390.35 (b) Each nonpublic school located within the districtshall390.36 must provide all nonpublic school pupils enrolled in grades 391.1 kindergarten through 10 who are transported by school bus at 391.2 public expense and attend school within the district's 391.3 boundaries with training as required in paragraph (a). The 391.4 school district shall make a bus available for the practical 391.5 training if the district transports the nonpublic students. 391.6 Each nonpublic school shall provide the instruction. 391.7 (c) All students enrolled in grades kindergarten through 3 391.8 who are transported by school bus and are enrolled during the 391.9 first or second week of school must demonstrate achievement of 391.10 the school bus safety training competencies by the end of the 391.11 third week of school. All students enrolled in grades 4 through 391.12 10 who are transported by school bus and are enrolled during the 391.13 first or second week of school must demonstrate achievement of 391.14 the competencies by the end of the sixth week of school. 391.15 Students enrolled in grades kindergarten through 10 who enroll 391.16 in a school after the second week of school and are transported 391.17 by school bus shall undergo school bus safety training and 391.18 demonstrate achievement of the school bus safety competencies 391.19 within four weeks of the first day of attendance. The pupil 391.20 transportation safety director in each district must certify to 391.21 the commissionerof children, families, and learningannually 391.22 that all students transported by school bus within the district 391.23 have satisfactorily demonstrated knowledge and understanding of 391.24 the school bus safety competencies according to this section or 391.25 provide an explanation for a student's failure to demonstrate 391.26 the competencies. The principal or other chief administrator of 391.27 each nonpublic school must certify annually to the public 391.28 transportation safety director of the district in which the 391.29 school is located that all of the school's students transported 391.30 by school bus at public expense have received training. A 391.31schooldistrict may deny transportation to a student who fails 391.32 to demonstrate the competencies, unless the student is unable to 391.33 achieve the competencies due to a disability, or to a student 391.34 who attends a nonpublic school that fails to provide training as 391.35 required by this subdivision. 391.36 (d) Aschooldistrict and a nonpublic school with students 392.1 transported by school bus at public expense must, to the extent 392.2 possible, provide kindergarten pupils with bus safety training 392.3 before the first day of school. 392.4 (e) Aschooldistrict and a nonpublic school with students 392.5 transported by school bus at public expense must also provide 392.6 student safety education for bicycling and pedestrian safety, 392.7 for students enrolled in grades kindergarten through 5. 392.8 (f) Aschooldistrict and a nonpublic school with students 392.9 transported by school bus at public expense must make reasonable 392.10 accommodations for the school bus, bicycle, and pedestrian 392.11 safety training of pupils known to speak English as a second 392.12 language and pupils with disabilities. 392.13 Sec. 7. Minnesota Statutes 1996, section 123.7991, 392.14 subdivision 3, is amended to read: 392.15 Subd. 3. [MODEL TRAINING PROGRAM.] The commissionerof392.16children, families, and learningshall develop a comprehensive 392.17 model school bus safety training program for pupils who ride the 392.18 bus that includes bus safety curriculum for both classroom and 392.19 practical instruction, methods for assessing attainment of 392.20 school bus safety competencies, and age-appropriate 392.21 instructional materials. The program must be adaptable for use 392.22 by students with disabilities. 392.23 Sec. 8. Minnesota Statutes 1996, section 123.801, is 392.24 amended to read: 392.25 123.801 [BUS TRANSPORTATION A PRIVILEGE NOT A RIGHT.] 392.26 Transportation by school bus is a privilege not a right for 392.27 an eligible student. A student's eligibility to ride a school 392.28 bus may be revoked for a violation of school bus safety or 392.29 conduct policies, or for violation of any other law governing 392.30 student conduct on a school bus, pursuant to a written school 392.31 district discipline policy. Revocation of a student's bus 392.32 riding privilege is not an exclusion, expulsion, or suspension 392.33 under the pupil fair dismissal actof 1974. Revocation 392.34 procedures for a student who is an individual with a disability 392.35 under the Individuals with Disabilities Education Act, United 392.36 States Code, title 20, section 1400 et seq., section 504 of the 393.1 Rehabilitation Act of 1973, United States Code, title 29, 393.2 section 794, and the Americans with Disabilities Act, Public Law 393.3 Number 101-336, are governed by these provisions. 393.4 Sec. 9. Minnesota Statutes 1996, section 123.805, is 393.5 amended to read: 393.6 123.805 [SCHOOL DISTRICT BUS SAFETY RESPONSIBILITIES.] 393.7 Subdivision 1. [COMPREHENSIVE POLICY.] Eachschool393.8 districtshallmust develop and implement a comprehensive, 393.9 written policy governing pupil transportation safety, including 393.10 transportation of nonpublic school students, when applicable. 393.11 The policy shall, at minimum, contain: 393.12 (1) provisions for appropriate student bus safety training 393.13 under section 123.7991; 393.14 (2) rules governing student conduct on school buses and in 393.15 school bus loading and unloading areas; 393.16 (3) a statement of parent or guardian responsibilities 393.17 relating to school bus safety; 393.18 (4) provisions for notifying students and parents or 393.19 guardians of their responsibilities and the rules; 393.20 (5) an intradistrict system for reporting school bus 393.21 accidents or misconduct, a system for dealing with local law 393.22 enforcement officials in cases of criminal conduct on a school 393.23 bus, and a system for reporting accidents, crimes, incidents of 393.24 misconduct, and bus driver dismissals to the department of 393.25 public safety under section 169.452; 393.26 (6) a discipline policy to address violations of school bus 393.27 safety rules, including procedures for revoking a student's bus 393.28 riding privileges in cases of serious or repeated misconduct; 393.29 (7) a system for integrating school bus misconduct records 393.30 with other discipline records; 393.31 (8) a statement of bus driver duties; 393.32 (9) planned expenditures for safety activities under 393.33 section 123.799 and, where applicable, provisions governing bus 393.34 monitor qualifications, training, and duties; 393.35 (10) rules governing the use and maintenance of type III 393.36 vehicles, drivers of type III vehicles, qualifications to drive 394.1 a type III vehicle, qualifications for a type III vehicle and 394.2 the circumstances under which a student may be transported in a 394.3 type III vehicle; 394.4 (11) operating rules and procedures; 394.5 (12) provisions for annual bus driver in-service training 394.6 and evaluation; 394.7 (13) emergency procedures; 394.8 (14) a system for maintaining and inspecting equipment; 394.9 (15) requirements of the school district, if any, that 394.10 exceed state law minimum requirements for school bus operations; 394.11 and 394.12 (16) requirements for basic first aid training, whichshall394.13 must include the Heimlich maneuver and procedures for dealing 394.14 with obstructed airways, shock, bleeding, and seizures. 394.15SchoolDistricts are encouraged to use the model policy 394.16 developed by the Minnesota school boards association, the 394.17 department of public safety, and the department of children, 394.18 families, and learning, as well as the current edition of the 394.19 "National Standards for School Buses and Operations" published 394.20 by the National Safety Council, in developing safety policies. 394.21Each district shall submit a copy of its policy under this394.22subdivision to the school bus safety advisory committee no later394.23than August 1, 1994.Each district shall review its policy 394.24 annually and make appropriate amendments, which must be 394.25 submitted to the school bus safety advisory committee within one 394.26 month of approval by the school board. 394.27 Subd. 2. [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 394.28schoolboard shall designate a school transportation safety 394.29 director to oversee and implement pupil transportation safety 394.30 policies. The director shall have day-to-day responsibility for 394.31 pupil transportation safety within the district, including 394.32 transportation of nonpublic school children when provided by the 394.33 district. 394.34 Sec. 10. Minnesota Statutes 1996, section 123.932, 394.35 subdivision 1b, is amended to read: 394.36 Subd. 1b. [TEXTBOOK.] "Textbook" means any book or book 395.1 substitute which a pupil uses as a text or text substitute in a 395.2 particular class or program in the school regularly attended and 395.3 a copy of which is expected to be available for the individual 395.4 use of each pupil in this class or program, which book or book395.5substitute or text or text substitute. The term shall be 395.6 limited to books, workbooks, or manuals, whether bound or in 395.7 loose-leaf form, intended for use as a principal source of study 395.8 material for a given class or a group of students. The term 395.9 includes only such secular, neutral and nonideological textbooks 395.10 as are available, used by, or of benefit to Minnesota public 395.11 school pupils. 395.12 Sec. 11. Minnesota Statutes 1996, section 123.933, is 395.13 amended to read: 395.14 123.933 [TEXTBOOKS,; INDIVIDUAL INSTRUCTION OR COOPERATIVE 395.15 LEARNING MATERIAL,; STANDARD TESTS.] 395.16 Subdivision 1. [PROVISION.] The state board of education 395.17 shall promulgate rules under the provisions of chapter 14 395.18 requiring that in each school year, based upon formal requests 395.19 by or on behalf of nonpublic school pupils in a nonpublic 395.20 school, the local districts or intermediary service areasshall395.21 must purchase or otherwise acquire textbooks, individualized 395.22 instructional or cooperative learning materials, and 395.23 standardized tests and loan or provide them for use by children 395.24 enrolled in that nonpublic school. These textbooks, 395.25 individualized instructional or cooperative learning materials, 395.26 and standardized testsshallmust be loaned or provided free to 395.27 the children for the school year for which requested. The loan 395.28 or provision of the textbooks, individualized instructional or 395.29 cooperative learning materials, and standardized tests shall be 395.30 subject to rules prescribed by the state board of education. 395.31 Subd. 2. [TITLE.] The title to textbooks, individualized 395.32 instructional or cooperative learning materials, and 395.33 standardized testing materialsshallmust remain in the 395.34 servicing school district or intermediary service area, and 395.35 possession or custody may be granted or charged to 395.36 administrators of the nonpublic school attended by the nonpublic 396.1 school pupil or pupils to whom the textbooks, individualized 396.2 instructional or cooperative learning materials, or standardized 396.3 tests are loaned or provided. 396.4 Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the 396.5 textbooks, individualized instructional or cooperative learning 396.6 materials, and standardized tests provided for in this section 396.7 for each school yearshallmust not exceed the statewide average 396.8 expenditure per pupil, adjusted pursuant to clause (b), by the 396.9 Minnesota public elementary and secondary schools for textbooks, 396.10 individualized instructional materials and standardized tests as 396.11 computed and established by the departmentof children,396.12families, and learningby March 1 of the preceding school year 396.13 from the most recent public school year data then available. 396.14 (b) The cost computed in clause (a) shall be increased by 396.15 an inflation adjustment equal to the percent of increase in the 396.16 formula allowance, pursuant to section 124A.22, subdivision 2, 396.17 from the second preceding school year to the current school year. 396.18 (c) The commissioner shall allot to theschooldistricts or 396.19 intermediary service areas the total cost for each school year 396.20 of providing or loaning the textbooks, individualized 396.21 instructional or cooperative learning materials, and 396.22 standardized tests for the pupils in each nonpublic school. The 396.23 allotment shall not exceed the product of the statewide average 396.24 expenditure per pupil, according to clause (a), adjusted 396.25 pursuant to clause (b), multiplied by the number of nonpublic 396.26 school pupils who make requests pursuant to this section and who 396.27 are enrolled as of September 15 of the current school year. 396.28 Sec. 12. Minnesota Statutes 1996, section 123.935, 396.29 subdivision 1, is amended to read: 396.30 Subdivision 1. [PROVIDED SERVICES.] The state board of 396.31 education shall promulgate rules under the provisions of chapter 396.32 14 requiring eachschooldistrict or other intermediary service 396.33 area: (a) to provide each year upon formal request by a 396.34 specific date by or on behalf of a nonpublic school pupil 396.35 enrolled in a nonpublic school located in that district or area, 396.36 the same specific health services as are provided for public 397.1 school pupils by the district where the nonpublic school is 397.2 located; and (b) to provide each year upon formal request by a 397.3 specific date by or on behalf of a nonpublic school secondary 397.4 pupil enrolled in a nonpublic school located in that district or 397.5 area, the same specific guidance and counseling services as are 397.6 provided for public school secondary pupils by the district 397.7 where the nonpublic school is located. The district where the 397.8 nonpublic school is locatedshallmust provide the necessary 397.9 transportation within the district boundaries between the 397.10 nonpublic school and a public school or neutral site for 397.11 nonpublic school pupils who are provided pupil support services 397.12 pursuant to this section. Each request for pupil support 397.13 servicesshallmust set forth the guidance and counseling or 397.14 health services requested by or on behalf of all eligible 397.15 nonpublic school pupils enrolled in a given nonpublic school. 397.16 No district or intermediary service areashallmust not expend 397.17 an amount for these pupil support services which exceeds the 397.18 amount allotted to it under this section. 397.19 Sec. 13. Minnesota Statutes 1996, section 123.935, 397.20 subdivision 2, is amended to read: 397.21 Subd. 2. [LOCATION OF SERVICES.] Health services may be 397.22 provided to nonpublic school pupils pursuant to this section at 397.23 a public school, a neutral site, the nonpublic school or any 397.24 other suitable location. Guidance and counseling services may 397.25 be provided to nonpublic school pupils pursuant to this section 397.26 only at a public school or a neutral site. District or 397.27 intermediary service area personnel and representatives of the 397.28 nonpublic school pupils receiving pupil support servicesshall397.29 must hold an annual consultation regarding the type of services, 397.30 provider of services, and the location of the provision of these 397.31 services. The district board or intermediary service area 397.32 governing boardshallmust make the final decision on the 397.33 location of the provision of these services. 397.34 Sec. 14. Minnesota Statutes 1996, section 123.935, 397.35 subdivision 4, is amended to read: 397.36 Subd. 4. [HEALTH SERVICES; ALLOTMENT.] Each school year 398.1 the commissioner shall allot to the school districts or other 398.2 intermediary service areas for the provision of health services 398.3 pursuant to this section the actual cost of the services 398.4 provided for the pupils in each respective nonpublic school for 398.5 that school year, but not to. The allotment must not exceed the 398.6 average expenditure per public school pupil for these services 398.7 by those Minnesota public elementary and secondary schools which 398.8 provide health services to public school pupils, multiplied by 398.9 the number of pupils in that particular nonpublic school who 398.10 request these health services and who are enrolled as of 398.11 September 15 of the current school year. 398.12 Sec. 15. Minnesota Statutes 1996, section 123.935, 398.13 subdivision 5, is amended to read: 398.14 Subd. 5. [GUIDANCE AND COUNSELING SERVICES; ALLOTMENT.] 398.15 Each school year the commissioner shall allot to the school 398.16 districts or intermediary service areas for the provision of 398.17 guidance and counseling services pursuant to this section the 398.18 actual cost of the services provided for the pupils in each 398.19 respective nonpublic school for that school year. The allotment 398.20 for guidance and counseling services for the secondary pupils in 398.21 each nonpublic schoolshallmust not exceed the average 398.22 expenditure per public school secondary pupil for these services 398.23 by those Minnesota public schools which provide these services 398.24 to their secondary pupils, multiplied by the number of secondary 398.25 pupils in that particular nonpublic school who request these 398.26 services and who are enrolled as of September 15 of the current 398.27 school year. 398.28 Sec. 16. Minnesota Statutes 1996, section 123.935, 398.29 subdivision 6, is amended to read: 398.30 Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 398.31 of computing maximum allotments for each school year pursuant to 398.32 this section, the average public school expenditure per pupil 398.33 for health services and the average public school expenditure 398.34 per secondary pupil for guidance and counseling services shall 398.35 be computed and established by the departmentof children,398.36families, and learningby March 1 of the preceding school year 399.1 from the most recent public school year data then available. 399.2 Sec. 17. Minnesota Statutes 1996, section 123.936, is 399.3 amended to read: 399.4 123.936 [PAYMENTS FOR CONTRACTUAL OBLIGATIONS.] 399.5In every eventThe commissioner shall make such payments to 399.6 school districts or intermediary service areas pursuant to 399.7 sections 123.931 to 123.937 as are needed to meet contractual 399.8 obligations incurred for the provision of benefits to nonpublic 399.9 school students pursuant to section 123.933 or 123.935. 399.10 Sec. 18. Minnesota Statutes 1996, section 123.9361, is 399.11 amended to read: 399.12 123.9361 [ADMINISTRATIVE COSTS.] 399.13 Each year, aschooldistrict or intermediary service area 399.14 may claim and receive from the departmentof children, families,399.15and learningan additional sum for the administration of 399.16 sections 123.933 and 123.935, equal to five percent of the 399.17 district's or area's allocation for that year pursuant to those 399.18 sections. 399.19 Sec. 19. Minnesota Statutes 1996, section 123.9362, is 399.20 amended to read: 399.21 123.9362 [NOTICE TO DISTRICTS; PRORATION.] 399.22In the eventIf the appropriation for nonpublic educational 399.23 aid under sections 123.931 to 123.947 is not sufficient to meet 399.24 the required payments in any fiscal year, the departmentof399.25children, families, and learningmust notify the school 399.26 districts at the earliest possible date of the need to prorate 399.27 the appropriation among the districts. 399.28 Sec. 20. Minnesota Statutes 1996, section 123.947, is 399.29 amended to read: 399.30 123.947 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 399.31 (a) The commissioner shall assure that textbooks and 399.32 individualized instructional materials loaned to nonpublic 399.33 school pupils are secular, neutral, nonideological and that they 399.34 are incapable of diversion for religious use. 399.35 (b) Textbooks and individualized instructional materials 399.36shallmust not be used in religious courses, devotional 400.1 exercises, religious training or any other religious activity. 400.2 (c) Textbooks and individualized instructional materials 400.3shallmust be loaned only to individual pupils upon the request 400.4 of a parent or guardian or the pupil on a form designated for 400.5 this use by the commissioner. The request forms shall provide 400.6 for verification by the parent or guardian or pupil that the 400.7 requested textbooks and individualized instructional materials 400.8 are for the use of the individual pupil in connection with a 400.9 program of instruction in the pupil's elementary or secondary 400.10 school. 400.11 (d) The servicing school district or the intermediary 400.12 service areashallmust take adequate measures to ensure an 400.13 accurate and periodic inventory of all textbooks and 400.14 individualized instructional materials loaned to elementary and 400.15 secondary school pupils attending nonpublic schools. The state 400.16 board of education shall promulgate rules under the provisions 400.17 of chapter 14 to terminate the eligibility of any nonpublic 400.18 school pupil if the commissioner determines, after notice and 400.19 opportunity for hearing, that the textbooks or individualized 400.20 instructional materials have been used in a manner contrary to 400.21 the provisions of section 123.932, subdivision 1e, 123.933, or 400.22 this section or any rules promulgated by the state board of 400.23 education. 400.24 (e) Nothing contained in section 123.932, subdivision 1e, 400.25 123.933, or this section shall be construed to authorize the 400.26 making of any payments to a nonpublic school or its faculty, 400.27 staff or administrators for religious worship or instruction or 400.28 for any other purpose. 400.29 Sec. 21. Minnesota Statutes 1997 Supplement, section 400.30 124.17, subdivision 1, is amended to read: 400.31 Subdivision 1. [PUPIL UNIT.] Pupil units for each 400.32 Minnesota resident pupil in average daily membership enrolled in 400.33 the district of residence, in another district under sections 400.34 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, or 400.35 126.22; in a charter school under section 120.064; or for whom 400.36 the resident district pays tuition under section 120.0621, 401.1 120.08, 120.17, 120.181, 122.535, 122.541, 122.94, 123.351, 401.2 123.39, subdivision 4, 124.18, or 124.491, shall be counted 401.3 according to this subdivision. 401.4 (a) A prekindergarten pupil with a disability who is 401.5 enrolled in a program approved by the commissioner and has an 401.6 individual education plan is counted as the ratio of the number 401.7 of hours of assessment and education service to 825 with a 401.8 minimum of 0.28, but not more than one. 401.9 (b) A prekindergarten pupil who is assessed but determined 401.10 not to be handicapped is counted as the ratio of the number of 401.11 hours of assessment service to 825. 401.12 (c) A kindergarten pupil with a disability who is enrolled 401.13 in a program approved by the commissioner is counted as the 401.14 ratio of the number of hours of assessment and education 401.15 services required in the fiscal year by the pupil's individual 401.16 education program plan to 875, but not more than one. 401.17 (d) A kindergarten pupil who is not included in paragraph 401.18 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 401.19 thereafter. 401.20 (e) A pupil who is in any of grades 1 to 6 is counted as 401.21 1.06 pupil units for fiscal year 1995 and thereafter. 401.22 (f) A pupil who is in any of grades 7 to 12 is counted as 401.23 1.3 pupil units. 401.24 (g) A pupil who is in the post-secondary enrollment options 401.25 program is counted as 1.3 pupil units. 401.26 Sec. 22. Minnesota Statutes 1996, section 124.17, 401.27 subdivision 1f, is amended to read: 401.28 Subd. 1f. [FUND BALANCEADJUSTED PUPIL UNITS.]Fund401.29balanceAdjusted pupil unitsmust be computed separately for401.30kindergarten pupils, elementary pupils in grades 1 to 6, and401.31secondary pupils in grades 7 to 12. Total fund balance pupil401.32units means the sum of kindergarten, elementary, and secondary401.33fund balance pupil units. Fund balance pupil units for each401.34categoryfor a district means the sum of: 401.35 (1) the number of resident pupil unitsin average daily401.36membership, including, according to subdivision 1g, plus 402.1 (2) shared time pupil units, according to section 124A.02, 402.2 subdivision 20, plus 402.3(1)(3) pupil units according to subdivision 1 for pupils 402.4 attending the district for which general education aid 402.5 adjustments are made according to section 124A.036, subdivision 402.6 5; minus 402.7(2) the sum of the(4) pupil units according to subdivision 402.8 1 for resident pupils attending other districts for which 402.9 general education aid adjustments are made according to section 402.10 124A.036, subdivision 5, plus pupils for whom payment is made402.11according to section 126.22, subdivision 8, or 126.23. 402.12 Sec. 23. Minnesota Statutes 1996, section 124.17, is 402.13 amended by adding a subdivision to read: 402.14 Subd. 1g. [RESIDENT PUPIL UNITS.] Resident pupil units for 402.15 a district means the number of pupil units according to 402.16 subdivision 1 residing in the district. 402.17 Sec. 24. Minnesota Statutes 1996, section 124.17, is 402.18 amended by adding a subdivision to read: 402.19 Subd. 1h. [PUPIL UNITS SERVED.] Pupil units served for a 402.20 district means the number of pupil units according to 402.21 subdivision 1 enrolled in the district. 402.22 Sec. 25. Minnesota Statutes 1996, section 124.17, 402.23 subdivision 2, is amended to read: 402.24 Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 402.25 in grades kindergarten through 12 and for prekindergarten pupils 402.26 with disabilities shall mean the number of pupils on the current 402.27 roll of the school, counted from the date of entry until 402.28 withdrawal. The date of withdrawal shall mean the day the pupil 402.29 permanently leaves the school or the date it is officially known 402.30 that the pupil has left or has been legally excused. However, a 402.31 pupil, regardless of age, who has been absent from school for 15 402.32 consecutive school days during the regular school year or for 402.33 five consecutive school days during summer school or 402.34 intersession classes of flexible school year programs without 402.35 receiving instruction in the home or hospital shall be dropped 402.36 from the roll and classified as withdrawn. Nothing in this 403.1 section shall be construed as waiving the compulsory attendance 403.2 provisions cited in section 120.101. Average daily membership 403.3shall equalequals the sum for all pupils of the number of days 403.4 of the school year each pupil is enrolled in the district's 403.5 schools divided by the number of days the schools are in 403.6 session. Days of summer school or intersession classes of 403.7 flexible school year programsshallare onlybeincluded in the 403.8 computation of membership for pupils with a disability 403.9 appropriately served at level 4, 5, or 6 of the continuum of 403.10 placement model described in Minnesota Rules, part 3525.0200. 403.11 Sec. 26. Minnesota Statutes 1996, section 124.17, 403.12 subdivision 2a, is amended to read: 403.13 Subd. 2a. [TRANSITIONAL YEAR PUPILS.] Notwithstanding 403.14 subdivision 2, pupils granted transitional year status shall 403.15 continue to be counted as members on the current roll of the 403.16 school for the remainder of the school year. For purposes of 403.17 computing average daily membership, transitional year 403.18 pupilsshallmust be considered to be enrolled every day school 403.19 is in session for the remainder of the school year. 403.20 Sec. 27. Minnesota Statutes 1996, section 124.17, 403.21 subdivision 2b, is amended to read: 403.22 Subd. 2b. [NATIONAL GUARD PUPILS.] Notwithstanding 403.23 subdivision 2, pupils enrolled in the Minnesota National Guard 403.24 program shall be construed to be in attendance, for purposes of 403.25 computing average daily membership, during any period of the 403.26 regular school year, but not to include summer school, during 403.27 which the pupil is attending military active duty training 403.28 pursuant to that program. During that period of military active 403.29 duty training, the pupil shall earn all aid for the district of 403.30 residence or attendance which would be otherwise earned by the 403.31 pupil's presence. 403.32 Sec. 28. Minnesota Statutes 1997 Supplement, section 403.33 124.17, subdivision 4, is amended to read: 403.34 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 403.35 enrolled in a learning year program under section 121.585, an 403.36 area learning center under sections 124C.45 and 124C.46, or an 404.1 alternative program approved by the commissioner, for more than 404.2 1,020 hours in a school year for a secondary student, more than 404.3 935 hours in a school year for an elementary student, or more 404.4 than 425 hours in a school year for a kindergarten student 404.5 without a disability, that pupil may be counted as more than one 404.6 pupil in average daily membership. The amount in excess of one 404.7 pupil must be determined by the ratio of the number of hours of 404.8 instruction provided to that pupil in excess of: (i) the 404.9 greater of 1,020 hours or the number of hours required for a 404.10 full-time secondary pupil in the district to 1,020 for a 404.11 secondary pupil; (ii) the greater of 935 hours or the number of 404.12 hours required for a full-time elementary pupil in the district 404.13 to 935 for an elementary pupil in grades 1 through 6; and (iii) 404.14 the greater of 425 hours or the number of hours required for a 404.15 full-time kindergarten student without a disability in the 404.16 district to 425 for a kindergarten student without a 404.17 disability. Hours that occur after the close of the 404.18 instructional year in June shall be attributable to the 404.19 following fiscal year. A kindergarten student must not be 404.20 counted as more than 1.2 pupils in average daily membership 404.21 under this subdivision. 404.22 (b)(i) To receive general education revenue for a pupil in 404.23 an alternative program that has an independent study component, 404.24 aschooldistrict must meet the requirements in this paragraph. 404.25 Theschooldistrict must develop, with the pupil, a continual 404.26 learning plan for the pupil. A district must allow a minor 404.27 pupil's parent or guardian to participate in developing the 404.28 plan, if the parent or guardian wants to participate. The plan 404.29 must identify the learning experiences and expected outcomes 404.30 needed for satisfactory credit for the year and for graduation. 404.31 The plan must be updated each year. Each school district that 404.32 has a state-approved public alternative program must reserve 404.33 revenue in an amount equal to at least 90 percent of the 404.34 district average general education revenue per pupil unit less 404.35 compensatory revenue per pupil unit times the number of pupil 404.36 units generated by students attending a state-approved public 405.1 alternative program. The amount of reserved revenue available 405.2 under this subdivision may only be spent for program costs 405.3 associated with the state-approved public alternative program. 405.4 Compensatory revenue must be allocated according to section 405.5 124A.28, subdivision 1a. 405.6 (ii) General education revenue for a pupil in an approved 405.7 alternative program without an independent study component must 405.8 be prorated for a pupil participating for less than a full year, 405.9 or its equivalent. Each school district that has a 405.10 state-approved public alternative program must reserve revenue 405.11 in an amount equal to at least 90 percent of the district 405.12 average general education revenue per pupil unit less 405.13 compensatory revenue per pupil unit times the number of pupil 405.14 units generated by students attending a state-approved public 405.15 alternative program. The amount of reserved revenue available 405.16 under this subdivision may only be spent for program costs 405.17 associated with the state-approved public alternative program. 405.18 Compensatory revenue must be allocated according to section 405.19 124A.28, subdivision 1a. 405.20 (iii) General education revenue for a pupil in an approved 405.21 alternative program that has an independent study component must 405.22 be paid for each hour of teacher contact time and each hour of 405.23 independent study time completed toward a credit or graduation 405.24 standards necessary for graduation. Average daily membership 405.25 for a pupil shall equal the number of hours of teacher contact 405.26 time and independent study time divided by 1,020. 405.27 (iv) For an alternative program having an independent study 405.28 component, the commissioner shall require a description of the 405.29 courses in the program, the kinds of independent study involved, 405.30 the expected learning outcomes of the courses, and the means of 405.31 measuring student performance against the expected outcomes. 405.32 Sec. 29. Minnesota Statutes 1996, section 124.175, is 405.33 amended to read: 405.34 124.175 [AFDC PUPIL COUNT; CERTIFICATION.] 405.35 Each year by March 1, the department of human services 405.36 shall certify to the department of children, families, and 406.1 learning, for eachschooldistrict, the number of pupils from 406.2 families receiving aid to families with dependent children who 406.3 were enrolled in a public school on October 1 of the preceding 406.4 year. 406.5 Sec. 30. Minnesota Statutes 1996, section 124.19, 406.6 subdivision 5, is amended to read: 406.7 Subd. 5. [SCHEDULE ADJUSTMENTS.] (a) It is the intention 406.8 of the legislature to encourage efficient and effective use of 406.9 staff and facilities byschooldistricts.SchoolDistricts are 406.10 encouraged to consider both cost and energy saving measures. 406.11 (b)Notwithstanding the provisions of subdivision 1 or 4,406.12 Any district operating a program pursuant to sections 120.59 to 406.13 120.67, 121.585 or 125.701 to 125.705, or operating a 406.14 commissioner-designated area learning center program under 406.15 section 124C.49, or that otherwise receives the approval of the 406.16 commissioner to operate its instructional program to avoid an 406.17 aid reduction in any year, may adjust the annual school schedule 406.18 for that program throughout the calendar year. 406.19 Sec. 31. Minnesota Statutes 1996, section 124.225, 406.20 subdivision 7f, is amended to read: 406.21 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 406.22 districtshallmust reserve an amount equal to the greater of 406.23 $500 or $1.50 times the number of fund balance pupil units, for 406.24 that school year to provide student transportation safety 406.25 programs under section 123.799. This revenue may only be used 406.26 if the district complies with the reporting requirements of 406.27 section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 406.28 subdivision 5. 406.29 Sec. 32. Minnesota Statutes 1996, section 124.225, 406.30 subdivision 8l, is amended to read: 406.31 Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 406.32 that enrolls nonresident pupils in programs under sections 406.33 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 406.34 126.22,shallmust provide authorized transportation to the 406.35 pupil within the attendance area for the school that the pupil 406.36 attends. The resident district need not provide or pay for 407.1 transportation between the pupil's residence and the district's 407.2 border. 407.3 Sec. 33. Minnesota Statutes 1996, section 124.225, 407.4 subdivision 8m, is amended to read: 407.5 Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's 407.6 transportation safety aid equals the district's reserved revenue 407.7 for transportation safety under subdivision 7f for that school 407.8 year. Failure of aschooldistrict to comply with the reporting 407.9 requirements of section 123.7991, 123.805, 169.452, 169.4582, or 407.10 171.321, subdivision 5, may result in a withholding of that 407.11 district's transportation safety aid for that school year. 407.12 Sec. 34. Minnesota Statutes 1996, section 124.225, 407.13 subdivision 9, is amended to read: 407.14 Subd. 9. [DISTRICT REPORTS.] Each districtshallmust 407.15 report data to the department as required by the department to 407.16 account for transportation expenditures. 407.17 Sec. 35. Minnesota Statutes 1996, section 124.239, 407.18 subdivision 3, is amended to read: 407.19 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 407.20 approval of itsschoolboard and the commissioner, may issue 407.21 general obligation bonds under this section to finance approved 407.22 facilities plans. Chapter 475, except sections 475.58 and 407.23 475.59, must be complied with. The district may levy under 407.24 subdivision 5 for the debt service revenue. The authority to 407.25 issue bonds under this section is in addition to any bonding 407.26 authority authorized by this chapter, or other law. The amount 407.27 of bonding authority authorized under this section must be 407.28 disregarded in calculating the bonding or net debt limits of 407.29 this chapter, or any other law other than section 475.53, 407.30 subdivision 4. 407.31 Sec. 36. Minnesota Statutes 1996, section 124.242, is 407.32 amended to read: 407.33 124.242 [BUILDING BONDS FOR CALAMITIES.] 407.34 Subdivision 1. [BONDS.] When a building owned by aschool407.35 district is substantially damaged by an act of God or other 407.36 means beyond the control of the district, the district may issue 408.1 general obligation bonds without an election to provide money 408.2 immediately to carry out its adopted health and safety program. 408.3 Each year the district must pledge an attributable share of its 408.4 health and safety revenue to the repayment of principal and 408.5 interest on the bonds. The pledged revenueshallmust be 408.6 transferred to the debt redemption fund of the district. The 408.7 districtshallmust submit to the departmentof children,408.8families, and learningthe repayment schedule for any bonds 408.9 issued under this section. The districtshallmust deposit in 408.10 the debt redemption fund all proceeds received for specific 408.11 costs for which the bonds were issued, including but not limited 408.12 to: 408.13 (1) insurance proceeds; 408.14 (2) restitution proceeds; and 408.15 (3) proceeds of litigation or settlement of a lawsuit. 408.16 Before bonds are issued, the district must submit a 408.17 combined application to the commissionerof children, families,408.18and learningfor health and safety revenue, according to section 408.19 124.83, and requesting review and comment, according to section 408.20 121.15, subdivisions 6, 7, 8, and 9. The commissioner shall 408.21 complete all procedures concerning the combined application 408.22 within 20 days of receiving the application. The publication 408.23 provisions of section 121.15, subdivision 9, do not apply to 408.24 bonds issued under this section. 408.25 Subd. 2. [HEALTH AND SAFETY REVENUE.] For any fiscal year 408.26 where the total amount of health and safety revenue is limited, 408.27 the commissionerof children, families, and learning shallmust 408.28 award highest priority to health and safety revenue pledged to 408.29 repay building bonds issued under subdivision 1. 408.30 Sec. 37. Minnesota Statutes 1997 Supplement, section 408.31 124.2445, is amended to read: 408.32 124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 408.33 The board of aschooldistrict may issue general obligation 408.34 certificates of indebtedness or capital notes subject to the 408.35schooldistrict debt limits to purchase: (a) vehicles, 408.36 computers, telephone systems, cable equipment, photocopy and 409.1 office equipment, technological equipment for instruction, and 409.2 other capital equipment having an expected useful life at least 409.3 as long as the terms of the certificates or notes; and (b) 409.4 computer hardware and software, without regard to its expected 409.5 useful life, whether bundled with machinery or equipment or 409.6 unbundled, together with application development services and 409.7 training related to the use of the computer. The certificates 409.8 or notes must be payable in not more than five years and must be 409.9 issued on the terms and in the manner determined by the board. 409.10 The certificates or notes may be issued by resolution and 409.11 without the requirement for an election. The certificates or 409.12 notes are general obligation bonds for purposes of section 409.13 124.755. A tax levy must be made for the payment of the 409.14 principal and interest on the certificates or notes, in 409.15 accordance with section 475.61, as in the case of bonds. The 409.16 sum of the tax levies under this section and section 124.2455 409.17 for each year must not exceed the amount of the district's total 409.18 operating capital revenue for the year the initial debt service 409.19 levies are certified. The district's general education levy for 409.20 each year must be reduced by the sum of (1) the amount of the 409.21 tax levies for debt service certified for each year for payment 409.22 of the principal and interest on the certificates or notes as 409.23 required by section 475.61, and (2) any excess amount in the 409.24 debt redemption fund used to retire certificates or notes issued 409.25 after April 1, 1997, other than amounts used to pay capitalized 409.26 interest. A district using an excess amount in the debt 409.27 redemption fund to retire the certificates or notes shall report 409.28 the amount used for this purpose to the commissioner by July 15 409.29 of the following fiscal year. A district having an outstanding 409.30 capital loan under section 124.431 or an outstanding debt 409.31 service loan under section 124.42 must not use an excess amount 409.32 in the debt redemption fund to retire the certificates or notes. 409.33 Sec. 38. Minnesota Statutes 1997 Supplement, section 409.34 124.2455, is amended to read: 409.35 124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 409.36 (a) In addition to other bonding authority, with approval 410.1 of the commissioner, aschooldistrict may issue general 410.2 obligation bonds for certain capital projects under this 410.3 section. The bonds must be used only to make capital 410.4 improvements including: 410.5 (1) under section 124A.22, subdivision 11, total operating 410.6 capital revenue uses specified in clauses (4), (6), (7), (8), 410.7 (9), and (10); 410.8 (2) the cost of energy modifications; 410.9 (3) improving handicap accessibility to school buildings; 410.10 and 410.11 (4) bringing school buildings into compliance with life and 410.12 safety codes and fire codes. 410.13 (b) Before a district issues bonds under this subdivision, 410.14 it must publish notice of the intended projects, the amount of 410.15 the bond issue, and the total amount of district indebtedness. 410.16 (c) A bond issue tentatively authorized by the board under 410.17 this subdivision becomes finally authorized unless a petition 410.18 signed by more than 15 percent of the registered voters of the 410.19schooldistrict is filed with the school board within 30 days of 410.20 the board's adoption of a resolution stating the board's 410.21 intention to issue bonds. The percentage is to be determined 410.22 with reference to the number of registered voters in theschool410.23 district on the last day before the petition is filed with the 410.24schoolboard. The petition must call for a referendum on the 410.25 question of whether to issue the bonds for the projects under 410.26 this section. The approval of 50 percent plus one of those 410.27 voting on the question is required to pass a referendum 410.28 authorized by this section. 410.29 (d) The bonds must be paid off within ten years of 410.30 issuance. The bonds must be issued in compliance with chapter 410.31 475, except as otherwise provided in this section. A tax levy 410.32 must be made for the payment of principal and interest on the 410.33 bonds in accordance with section 475.61. The sum of the tax 410.34 levies under this section and section 124.2455 for each year 410.35 must not exceed the amount of the district's total operating 410.36 capital revenue for the year the initial debt service levies are 411.1 certified. The district's general education levy for each year 411.2 must be reduced by the sum of (1) the amount of the tax levies 411.3 for debt service certified for each year for payment of the 411.4 principal and interest on the bonds, and (2) any excess amount 411.5 in the debt redemption fund used to retire bonds issued after 411.6 April 1, 1997, other than amounts used to pay capitalized 411.7 interest. A district using an excess amount in the debt 411.8 redemption fund to retire the bonds shall report the amount used 411.9 for this purpose to the commissioner by July 15 of the following 411.10 fiscal year. A district having an outstanding capital loan 411.11 under section 124.431 or an outstanding debt service loan under 411.12 section 124.42 must not use an excess amount in the debt 411.13 redemption fund to retire the bonds. 411.14 (e) Notwithstanding paragraph (d), bonds issued by a 411.15 district within the first five years following voter approval of 411.16 a combination according to section 122.243, subdivision 2, must 411.17 be paid off within 20 years of issuance. All the other 411.18 provisions and limitation of paragraph (d) apply. 411.19 Sec. 39. Minnesota Statutes 1996, section 124.2726, 411.20 subdivision 1, is amended to read: 411.21 Subdivision 1. [ELIGIBILITY AND USE.] Aschooldistrict 411.22 that has been reorganized after June 30, 1994, under section 411.23 122.23 is eligible for consolidation transition revenue. 411.24 Revenue is equal to the sum of aid under subdivision 2 and levy 411.25 under subdivision 3. Consolidation transition revenue may only 411.26 be used according to this section. Revenue must be used for the 411.27 following purposes and may be distributed among these purposes 411.28 at the discretion of the district: 411.29 (1) to offer early retirement incentives as provided by 411.30 section 122.23, subdivision 20; 411.31 (2) to reduce operating debt as defined in section 121.915; 411.32 (3) to enhance learning opportunities for students in the 411.33 reorganized district; and 411.34 (4) for other costs incurred in the reorganization. 411.35 Revenue received and utilized under clause (3) or (4) may 411.36 be expended for operating, facilities, and/or equipment. 412.1 Revenue received under this sectionshallmust not be included 412.2 in the determination of the reduction under section 124A.26, 412.3 subdivision 1. 412.4 Sec. 40. Minnesota Statutes 1996, section 124.2726, 412.5 subdivision 2, is amended to read: 412.6 Subd. 2. [AID.] (a) Consolidation transition aid is equal 412.7 to $200 times the number of actual pupil units in the newly 412.8 created district in the year of consolidation and $100 times the 412.9 number of actual pupil units in the first year following the 412.10 year of consolidation. The number of pupil units used to 412.11 calculate aid in either year shall not exceed 1,000 for 412.12 districts consolidating July 1, 1994, and 1,500 for districts 412.13 consolidating July 1, 1995, and thereafter. 412.14 (b) If the total appropriation for consolidation transition 412.15 aid for any fiscal year, plus any amount transferred under 412.16 section 124.14, subdivision 7, is insufficient to pay all 412.17 districts the full amount of aid earned, the departmentof412.18children, families, and learning shallmust first pay the 412.19 districts in the first year following the year of consolidation 412.20 the full amount of aid earned and distribute any remaining funds 412.21 to the newly created districts in the first year of 412.22 consolidation. 412.23 Sec. 41. Minnesota Statutes 1996, section 124.2726, 412.24 subdivision 4, is amended to read: 412.25 Subd. 4. [NEW DISTRICTS.] If a district consolidates with 412.26 another district that has received aid under section 124.2725 or 412.27 124.2726 within six years of the effective date of the new 412.28 consolidation, only the pupil units in the district or districts 412.29 not previously reorganizedshallmust be counted for aid 412.30 purposes under subdivision 2. If two or more districts 412.31 consolidate and all districts received aid under subdivision 2 412.32 within six years of the effective date of the new consolidation, 412.33 only one quarter of the pupil units in the newly created 412.34 districtshallmust be used to determine aid under subdivision 2. 412.35 Sec. 42. Minnesota Statutes 1996, section 124.2727, 412.36 subdivision 9, is amended to read: 413.1 Subd. 9. [PRORATION.] (a) If the total appropriation 413.2 available for district cooperation aid for any fiscal year, plus 413.3 any amount transferred under section 124.14, subdivision 7, is 413.4 insufficient to pay all districts the full amount of aid earned, 413.5 the departmentof children, families, and learning shallmust 413.6 reduce each district's district cooperation revenue according to 413.7 the calculations in paragraphs (b) to (d). 413.8 (b) If there is insufficient district cooperation aid 413.9 available, the department must recompute the district 413.10 cooperation revenue by proportionally reducing the formula 413.11 allowance and the revenue minimum to the levels that result in 413.12 an aid entitlement, adjusted by the percentage in section 413.13 124.195, subdivision 10, equal to the amount available. The 413.14 levy amounts must not be recomputed. 413.15 (c) A district's proration aid reduction is equal to the 413.16 lesser of zero, or the difference of the existing aid 413.17 calculation minus the aid amount computed for the district under 413.18 paragraph (b). 413.19 (d) If a district's proration aid reduction is less than 413.20 its revenue reduction, its district cooperation levy authority 413.21 for the following year must be reduced by the amount of the 413.22 difference between its revenue reduction and its aid reduction. 413.23 Sec. 43. Minnesota Statutes 1996, section 124.35, is 413.24 amended to read: 413.25 124.35 [LOANS TO DISTRESSED DISTRICTS.] 413.26 Financial aid to distressed districtsshall beis governed 413.27 by the provisions of the maximum effort school aid law. 413.28 Sec. 44. Minnesota Statutes 1996, section 124.37, is 413.29 amended to read: 413.30 124.37 [POLICY AND PURPOSE.] 413.31 The rates of increase in school population in Minnesota and 413.32 population shifts and economic changes in recent years, and 413.33 anticipated in future years, have required and will require 413.34 large expenditures for performing the duty of the state and its 413.35 subdivisions to provide a general and uniform system of public 413.36 schools. The state policy has been to require these school 414.1 costs to be borne primarily by the local subdivisions. In most 414.2 instances the local subdivisions have been, and will be, able to 414.3 provide the required funds by local taxation as supplemented by 414.4 the aids usually given to allschooldistricts from state income 414.5 tax and other state aids. There are, however, exceptional cases 414.6 due to local conditions not found in most other districts where, 414.7 either temporarily or over a considerable period of years, the 414.8 costs will exceed the maximum which the local taxpayers can be 414.9 reasonably expected to bear. In some districts having bonds of 414.10 several issues outstanding, debt service tax levy requirements 414.11 are excessive for some years because of heavy bond principal 414.12 payments accumulating in some of the years due to overlapping or 414.13 short term issues. The policy and purpose of sections 124.36 to 414.14 124.46 is to utilize the credit of the state, to a limited 414.15 degree, to relieve those school districts, but only those, where 414.16 the maximum effort by the district is inadequate to provide the 414.17 necessary money. It is also the purpose of sections 124.36 to 414.18 124.46 to promote efficient use of school buildings. To that 414.19 end, a district that receives a maximum effort loan is 414.20 encouraged to design and use its facility to integrate social 414.21 services and library services. 414.22 Sec. 45. Minnesota Statutes 1996, section 124.38, 414.23 subdivision 1, is amended to read: 414.24 Subdivision 1. [SCOPE.] As used in sections 124.38 to 414.25 124.46, the terms defined in this section shall have 414.26 thefollowingmeanings:given them. 414.27 Sec. 46. Minnesota Statutes 1996, section 124.38, 414.28 subdivision 4a, is amended to read: 414.29 Subd. 4a. [LEVY.] "Levy" means a district's net debt 414.30 service levy after the reduction of debt service equalization 414.31 aid under section 124.95, subdivision 5. For taxes payable in 414.32 1994 and later, each district's maximum effort debt service levy 414.33 for purposes of subdivision 7,shallmust be reduced by an equal 414.34 number of percentage points if the commissioner determines that 414.35 the levy reduction will not result in a statewide property tax 414.36 as would be required under Minnesota Statutes 1992, section 415.1 124.46, subdivision 3. A district's levy that is adjusted under 415.2 this sectionshallmust not be reduced below 18.74 percent of 415.3 the district's adjusted net tax capacity. 415.4 Sec. 47. Minnesota Statutes 1996, section 124.38, 415.5 subdivision 7, is amended to read: 415.6 Subd. 7. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 415.7 effort debt service levy" means the lesser of: 415.8 (1) a levy in whichever of the following amounts is 415.9 applicable: 415.10 (a) in anyschooldistrict receiving a debt service loan 415.11 for a debt service levy payable in 1991 and thereafter, or 415.12 granted a capital loan after January 1, 1990, a levy in a total 415.13 dollar amount computed at a rate of 20 percent of adjusted net 415.14 tax capacity for taxes payable in 1991 and thereafter; 415.15 (b) in anyschooldistrict granted a debt service loan 415.16 after July 31, 1981, or granted a capital loan which is approved 415.17 after July 31, 1981, a levy in a total dollar amount computed as 415.18 a tax rate of 13.08 percent on the adjusted gross tax capacity 415.19 for taxes payable in 1990 or a tax rate of 18.42 percent on the 415.20 adjusted net tax capacity for taxes payable in 1991 and 415.21 thereafter; 415.22 (c) in anyschooldistrict granted a debt service loan 415.23 before August 1, 1981, or granted a capital loan which was 415.24 approved before August 1, 1981, a levy in a total dollar amount 415.25 computed as a tax rate of 12.26 percent on the adjusted gross 415.26 tax capacity for taxes payable in 1990 or a tax rate of 17.17 415.27 percent on the adjusted net tax capacity for taxes payable in 415.28 1991 and thereafter, until and unless the district receives an 415.29 additional loan; or 415.30 (2) a levy in whichever of the following amounts is 415.31 applicable: 415.32 (a) in anyschooldistrict which received a debt service or 415.33 capital loan from the state before January 1, 1965, a levy in a 415.34 total dollar amount computed as 4.10 mills on the market value 415.35 in each year, unless the district applies or has applied for an 415.36 additional loan subsequent to January 1, 1965, or issues or has 416.1 issued bonds on the public market, other than bonds refunding 416.2 state loans, subsequent to January 1, 1967; 416.3 (b) in anyschooldistrict granted a debt service or 416.4 capital loan between January 1, 1965, and July 1, 1969, a levy 416.5 in a total dollar amount computed as 5-1/2 mills on the market 416.6 value in each year, until and unless the district receives an 416.7 additional loan; 416.8 (c) in anyschooldistrict granted a debt service or 416.9 capital loan between July 1, 1969, and July 1, 1975, a levy in a 416.10 total dollar amount computed as 6.3 mills on market value in 416.11 each year until and unless the district has received an 416.12 additional loan; 416.13 (d) in anyschooldistrict for which a capital loan was 416.14 approved prior to August 1, 1981, a levy in a total dollar 416.15 amount equal to the sum of the amount of the required debt 416.16 service levy and an amount which when levied annually will in 416.17 the opinion of the commissioner be sufficient to retire the 416.18 remaining interest and principal on any outstanding loans from 416.19 the state within 30 years of the original date when the capital 416.20 loan was granted; provided, that. Theschoolboard in any 416.21 district affected by the provisions of clause (2)(d) may elect 416.22 instead to determine the amount of its levy according to the 416.23 provisions of clause (1); provided further that. If a 416.24 district's capital loan is not paid within 30 years because it 416.25 elects to determine the amount of its levy according to the 416.26 provisions of clause (2)(d), the liability of the district for 416.27 the amount of the difference between the amount it levied under 416.28 clause (2)(d) and the amount it would have levied under clause 416.29 (1), and for interest on the amount of that difference,shall416.30 must not be satisfied and discharged pursuant to Minnesota 416.31 Statutes 1988, or an earlier edition of Minnesota Statutes if 416.32 applicable, section 124.43, subdivision 4. 416.33 Sec. 48. Minnesota Statutes 1996, section 124.381, is 416.34 amended to read: 416.35 124.381 [NET DEBT,; DETERMINATION.] 416.36 In computing "net debt" and in determining whetherany417.1schoola district is eligible for a state loan,nostate loans 417.2 toany such schoolthe district shall not be considered, 417.3 notwithstanding the provisions of any other general or special 417.4 law. 417.5 Sec. 49. Minnesota Statutes 1996, section 124.39, is 417.6 amended to read: 417.7 124.39 [FUND ESTABLISHED; DIVISION INTO ACCOUNTS.] 417.8 Subdivision 1. [MAXIMUM EFFORT SCHOOL LOAN FUND.]There417.9shall be maintained in the state treasuryA "maximum effort 417.10 school loan fund" for administration of moneys to be received 417.11 and disbursed as authorized and required by sections 124.36 to 417.12 124.46, whichmust be maintained in the state treasury. The 417.13 fundshallmust be divided into three accounts for the purposes 417.14 specified in subdivisions 2, 3, 4, and 5. 417.15 Subd. 2. [DEBT SERVICE LOAN ACCOUNT.]There shall beA 417.16 debt service loan account,must be maintained out of which loans 417.17 under section 124.42shallmust be made. All money appropriated 417.18 to the fund by section 124.40 shall be paid into this account 417.19 initially. 417.20 Subd. 3. [CAPITAL LOAN ACCOUNT.]There shall beA capital 417.21 loan account,must be maintained out of which loans under 417.22 section 124.431shallmust be made.There shall be transferred417.23to it from the debt service loan accountOn November 1of each417.24yearall moneystherein in excess of those required forin the 417.25 debt service loan account in excess of those for debt service 417.26 loans then agreed to be made must be transferred to the capital 417.27 loan account.There shall be transferred from it to the debt417.28service loan accountOn July 1of each year, all moneystherein417.29 in the capital loan account in excess of those required for 417.30 capital loans theretofore agreed to be made must be transferred 417.31 to the debt service loan account. 417.32 Subd. 4. [LOAN REPAYMENT ACCOUNT.]There shall beA loan 417.33 repayment account, into which shall be paidmust be maintained. 417.34 All principal and interest paid byschooldistricts on debt 417.35 service loans and capital loans made under section 124.42 or 417.36 124.431 must be paid into the account. The state's cost of 418.1 administering the maximum effort school aid lawshallmust be 418.2 paid out of this account, to an amount not exceeding $10,000 in 418.3 any year. As soon as possible in each year after the committee 418.4 has determined the ratio existing between the correct market 418.5 value of all taxable property in each school district in the 418.6 state and the "market value in money" of such property as 418.7 recorded in accordance with section 270.13, the commissioner of 418.8 revenue shallcauseprepare a list of all such ratiosto be418.9prepared. The clerical costs ofpreparation of suchpreparing 418.10 the listshallmust be paid as a cost of administration of the 418.11 maximum effort school aid law. The documents division of the 418.12 department of administration may publish and sell copies ofsuch418.13 the list.There shall be transferred out of the loan repayment418.14account to the state bond fundThe sums required to pay the 418.15 principal of and interest on all school loan bonds as provided 418.16 in section 124.46 must be transferred out of the loan repayment 418.17 account to the state bond fund. 418.18 Subd. 5. [EXCESS MONEY IN LOAN REPAYMENT ACCOUNT.] The 418.19 commissioner shall transfer from the loan repayment account to 418.20 the credit of the debt service loan account on November 1 of 418.21 each year all money deposited to the credit of the loan 418.22 repayment account thatwillis notberequired for the payment 418.23 of principal and interest and costs as prescribed in subdivision 418.24 4 but thatwill beis needed for debt service loans in the 418.25 fiscal year beginning July 1, and those moneys are annually 418.26 appropriated to that account for the purposes prescribed by the 418.27 maximum effort school aid law. Money deposited to the credit of 418.28 the loan repayment account and not required for the transfers or 418.29 for the payment of principal and interest due on school loan 418.30 bonds may be invested and reinvested in securities which are 418.31 general obligations of the United States or the state of 418.32 Minnesota. When all school loan bonds have been fully paid with 418.33 interest accrued thereon, the balance remaining in the account 418.34shallmust be transferred to the state bond fund. 418.35 Sec. 50. Minnesota Statutes 1996, section 124.40, is 418.36 amended to read: 419.1 124.40 [APPROPRIATION.] 419.2 Subdivision 1. [APPROPRIATION.]There is hereby419.3appropriated to the fund,In addition to all sums which have 419.4 been or may hereafter be appropriatedtheretoby any law, the 419.5 net proceeds of sale of any state school loan bonds authorized 419.6 to be issued under section 124.46, and all income received from 419.7 the investment of said net proceeds is hereby appropriated to 419.8 the school loan bond account in the state bond fund. 419.9 Subd. 2. [REMAINING MONEY.] Any amounts remaining in the 419.10 fund on July 1of each year, including any unused portion of the 419.11 appropriation made in subdivision 1,shallmust be available for 419.12 use by the commissioner in making further debt service loans and 419.13 capital loans. 419.14 Subd. 3. [PRINCIPAL INTEREST PAYMENTS.] All payments of 419.15 principal and interest on debt service notes or capital loan 419.16 contracts, as received by the commissioner, arehereby419.17 appropriated to the loan repayment account. 419.18 Sec. 51. Minnesota Statutes 1997 Supplement, section 419.19 124.41, subdivision 2, is amended to read: 419.20 Subd. 2. [APPLICATION FORMS; RULES.] The commissioner, 419.21 with the assistance of the attorney general or a designated 419.22 assistant, shall prepare forms of applications for debt service 419.23 loans and capital loans and instruments evidencing the loans. 419.24 The state boardshallmust promulgate rules to facilitate the 419.25 commissioner's operations in compliance with sections 124.36 to 419.26 124.46. The rulesshall beare subject to chapter 14. 419.27 Sec. 52. Minnesota Statutes 1996, section 124.41, 419.28 subdivision 3, is amended to read: 419.29 Subd. 3. [CLERK.] The commissioner may employ a clerk to 419.30 administer the maximum effort school aid law. The commissioner 419.31 may fix the clerk's compensation, whichshallmust be paid out 419.32 of the loan repayment account of the fund. 419.33 Sec. 53. Minnesota Statutes 1996, section 124.42, as 419.34 amended by Laws 1997, First Special Session chapter 4, article 419.35 4, section 12, is amended to read: 419.36 124.42 [DEBT SERVICE LOANS.] 420.1 Subdivision 1. [QUALIFICATION; APPLICATION; AWARD; 420.2 INTEREST.] Anyschooldistrict in which the required levy for 420.3 debt service in any year will exceed its maximum effort debt 420.4 service levy by ten percent or by $5,000, whichever is less, is 420.5 qualified for a debt service loan hereunder in an amount not 420.6 exceeding the amount applied for, and not exceeding one percent 420.7 of the net debt of the district, and not exceeding the 420.8 difference between the required and the maximum effort debt 420.9 service levy in that year. Applicationsshallmust be filed 420.10 with the commissioner in each calendar year up to and including 420.11 July 1. The commissioner shall determine whether the applicant 420.12 is entitled to a loan and the amount thereof, and on or before 420.13 October 1 shall certify to each applicant district the amount 420.14 granted and its due date. The commissioner shall notify the 420.15 county auditor of each county in which the district is located 420.16 that the amount certified is available and appropriated for 420.17 payment of principal and interest on its outstanding bonds, and. 420.18 The auditors shall reduce by that amount the taxes otherwise 420.19 leviable as the district's debt service levy on the tax rolls 420.20 for that year. Each debt service loan shall bear interest from 420.21 its date at a rate equal to the average annual rate payable on 420.22 Minnesota state school loan bonds most recently issued prior to 420.23 the disbursement of the loan to the district, but in no event 420.24 less than 3-1/2 percent per annum on the principal amount from 420.25 time to time remaining unpaid,. Interest is payable on December 420.26 15 of the year following that in which the loan is received and 420.27 annually thereafter. 420.28 Subd. 2. [NOTE.] Each debt service loanshallmust be 420.29 evidenced by a notewhich shall beexecuted on behalf of the 420.30 district by the signatures of its chair or vice-chair and the 420.31 school district clerk, shall. The note must be dated November 1 420.32 of the year in which executed, andshallmust state its 420.33 principal amount, interest rate, and that it is payable at the 420.34 commissioner's office.It shallThe note must have printed 420.35 thereon, or the commissioner shall attach thereto, a grill for 420.36 entry of the date and amount of each payment and allocations of 421.1 each payment to accrued interest or principal, and. The note 421.2 must also include a certificate to be executed by the county 421.3 auditor of each county in which any portion of theschool421.4 district is situated, prior to the delivery of the note, stating 421.5 that the county auditor has entered the debt service loan 421.6 evidenced thereby in the auditor's bond register. The 421.7 notesshallmust be delivered to the commissioner not later than 421.8 November 15 of the year in which executed. The commissioner 421.9 shall cause a record to be made and preserved showing the 421.10 obligor district and the date and principal amount of each note. 421.11 Subd. 3. [WARRANT.] The commissioner shall issue to each 421.12 district whose note has been so received a warrant on the debt 421.13 service loan account of the maximum effort school loan fund, 421.14 payable on presentation to the state treasurer out of any money 421.15 in such account. The warrant shall be issued by the 421.16 commissioner in sufficient time to coincide with the next date 421.17 on which the district is obligated to make principal or interest 421.18 payments on its bonded debt in the ensuing year. Interestshall421.19 must accrue from the date such warrant is issued. The proceeds 421.20 thereofshallmust be used by the district to pay principal or 421.21 interest on its bonded debt falling due in the ensuing year. 421.22 Subd. 4. [LEVY.] Each district receiving a debt service 421.23 loan shall levy for debt service in that year and each year 421.24 thereafter, until all its debts to the fund are paid, (a) the 421.25 amount of its maximum effort debt service levy, or (b) the 421.26 amount of its required debt service levy less the amount of any 421.27 debt service loan in that year, whichever is greater. The 421.28 district shall remit payments to the commissioner according to 421.29 section 124.45.On or beforeBy September 30in each year, the 421.30 commissioner shall notify the county auditor of each county 421.31 containing taxable property situated within the school district 421.32 of the amount of the maximum effort debt service levy of the 421.33 district for that year, and said county auditor or auditors 421.34 shall extend upon the tax rolls an ad valorem tax upon all 421.35 taxable property within the district in the aggregate amount so 421.36 certified. 422.1 Sec. 54. Minnesota Statutes 1997 Supplement, section 422.2 124.431, subdivision 2, is amended to read: 422.3 Subd. 2. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 422.4schooldistrict or a joint powers district that intends to apply 422.5 for a capital loan must submit a proposal to the commissioner 422.6 for review and comment according to section 121.15on or before422.7 by July 1 of an odd-numbered year. The commissionermustshall 422.8 prepare a review and comment on the proposed facility, 422.9 regardless of the amount of the capital expenditure required to 422.10 construct the facility. In addition to the information provided 422.11 under section 121.15, subdivision 7, the commissioner shall 422.12 require that predesign packages comparable to those required 422.13 under section 16B.335 be prepared by the applicant school 422.14 district. The predesign packages must be sufficient to define 422.15 the scope, cost, and schedule of the project and must 422.16 demonstrate that the project has been analyzed according to 422.17 appropriate space needs standards and also consider the 422.18 following criteria in determining whether to make a positive 422.19 review and comment. 422.20 (a) To grant a positive review and comment the commissioner 422.21mustshall determine that all of the following conditions are 422.22 met: 422.23 (1) the facilities are needed for pupils for whom no 422.24 adequate facilities exist or will exist; 422.25 (2) the district will serve, on average, at least 80 pupils 422.26 per grade or is eligible for elementary or secondary sparsity 422.27 revenue; 422.28 (3) no form of cooperation with another district would 422.29 provide the necessary facilities; 422.30 (4) the facilities are comparable in size and quality to 422.31 facilities recently constructed in other districts that have 422.32 similar enrollments; 422.33 (5) the facilities are comparable in size and quality to 422.34 facilities recently constructed in other districts that are 422.35 financed without a capital loan; 422.36 (6) the district is projected to maintain or increase its 423.1 average daily membership over the next five years or is eligible 423.2 for elementary or secondary sparsity revenue; 423.3 (7) the current facility poses a threat to the life, 423.4 health, and safety of pupils, and cannot reasonably be brought 423.5 into compliance with fire, health, or life safety codes; 423.6 (8) the district has made a good faith effort, as evidenced 423.7 by its maintenance expenditures, to adequately maintain the 423.8 existing facility during the previous ten years and to comply 423.9 with fire, health, and life safety codes and state and federal 423.10 requirements for handicapped accessibility; 423.11 (9) the district has made a good faith effort to encourage 423.12 integration of social service programs within the new facility; 423.13 and 423.14 (10) evaluations byschoolboards of adjacent districts 423.15 have been received. 423.16 (b) The commissioner may grant a negative review and 423.17 comment if: 423.18 (1) the state demographer has examined the population of 423.19 the communities to be served by the facility and determined that 423.20 the communities have not grown during the previous five years; 423.21 (2) the state demographer determines that the economic and 423.22 population bases of the communities to be served by the facility 423.23 are not likely to grow or to remain at a level sufficient, 423.24 during the next ten years, to ensure use of the entire facility; 423.25 (3) the need for facilities could be met within the 423.26 district or adjacent districts at a comparable cost by leasing, 423.27 repairing, remodeling, or sharing existing facilities or by 423.28 using temporary facilities; 423.29 (4) the district plans do not include cooperation and 423.30 collaboration with health and human services agencies and other 423.31 political subdivisions; or 423.32 (5) if the application is for new construction, an existing 423.33 facility that would meet the district's needs could be purchased 423.34 at a comparable cost from any other source within the area. 423.35 Sec. 55. Minnesota Statutes 1996, section 124.431, 423.36 subdivision 4, is amended to read: 424.1 Subd. 4. [ADJACENT DISTRICT COMMENTS.] The districtshall424.2 must present the proposed project to theschoolboard of each 424.3 adjacent district at a public meeting of that district. The 424.4 board of an adjacent district shall must make a written 424.5 evaluation of how the project will affect the future education 424.6 and building needs of the adjacent district. The boardshall424.7 must submit the evaluation to the applying district within 30 424.8 days of the meeting. 424.9 Sec. 56. Minnesota Statutes 1996, section 124.431, 424.10 subdivision 5, is amended to read: 424.11 Subd. 5. [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 424.12 school board of a district desiring a capital loan shall adopt a 424.13 resolution stating the amount proposed to be borrowed, the 424.14 purpose for which the debt is to be incurred, and an estimate of 424.15 the dates when the facilities for which the loan is requested 424.16 will be contracted for and completed. Applications for loans 424.17 must be accompanied by a copy of the adopted board resolution 424.18 and copies of the adjacent district evaluations. Theevaluation424.19 commissioner shallbe retained byretain thecommissioner424.20 evaluation as part of a permanent record of the district 424.21 submitting the evaluation. 424.22 Applications must be in the form and accompanied by the 424.23 additional data required by the commissioner. Applications must 424.24 be received by the commissioner by September 1 of an 424.25 odd-numbered year. A district must resubmit an application each 424.26 odd-numbered year. Capital loan applications that do not 424.27 receive voter approval or are not approved in law cancel July 1 424.28 of the year following application. When an application is 424.29 received, the commissioner shall obtain from the commissioner of 424.30 revenue the information in the revenue department's official 424.31 records that is required to be used in computing the debt limit 424.32 of the district under section 475.53, subdivision 4. 424.33 Sec. 57. Minnesota Statutes 1996, section 124.431, 424.34 subdivision 6, is amended to read: 424.35 Subd. 6. [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 424.36 November 1 of each odd-numbered year, the state board must 425.1 review all applications for capital loans that have received a 425.2 positive review and comment. When reviewing applications, the 425.3 state boardshallmust consider whether the criteria in 425.4 subdivision 2 have been met. The state board may not approve an 425.5 application if all of the required deadlines have not been met. 425.6 The state board may either approve or reject an application for 425.7 a capital loan. 425.8 Sec. 58. Minnesota Statutes 1996, section 124.431, 425.9 subdivision 10, is amended to read: 425.10 Subd. 10. [DISTRICT REFERENDUM.] After receipt of the 425.11 review and comment on the project and before January 1 of the 425.12 even-numbered year, the question authorizing the borrowing of 425.13 money for the facilities must be submitted by the school board 425.14 to the voters of the district at a regular or special election. 425.15 The question submitted must state the total amount to be 425.16 borrowed from all sources. Approval of a majority of those 425.17 voting on the question is sufficient to authorize the issuance 425.18 of the obligations on public sale in accordance with chapter 425.19 475. The face of the ballot must include the following 425.20 statement: "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 425.21 THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE. 425.22 THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 425.23 DEPENDENT ON AVAILABLE FUNDING." The districtshallmust mail 425.24 to the commissionerof children, families, and learninga 425.25 certificate by the clerk showing the vote at the election. 425.26 Sec. 59. Minnesota Statutes 1997 Supplement, section 425.27 124.431, subdivision 11, is amended to read: 425.28 Subd. 11. [CONTRACT.] (a) Each capital loan must be 425.29 evidenced by a contract between theschooldistrict and the 425.30 state acting through the commissioner. The contract must 425.31 obligate the state to reimburse the district, from the maximum 425.32 effort school loan fund, for eligible capital expenses for 425.33 construction of the facility for which the loan is granted, an 425.34 amount computed as provided in subdivision 8. The commissioner 425.35 must receive from theschooldistrict a certified resolution of 425.36 theschoolboard estimating the costs of construction and 426.1 reciting that contracts for construction of the facilities for 426.2 which the loan is granted have been awarded and that bonds of 426.3 the district have been issued and sold in the amount necessary 426.4 to pay all estimated costs of construction in excess of the 426.5 amount of the loan. The contract must obligate the district to 426.6 repay the loan out of the excesses of its maximum effort debt 426.7 service levy over its required debt service levy, including 426.8 interest at a rate equal to the weighted average annual rate 426.9 payable on Minnesota state school loan bonds issued for the 426.10 project and disbursed to the districts on a reimbursement basis, 426.11 but in no event less than 3-1/2 percent per year on the 426.12 principal amount from time to time unpaid. 426.13 (b) The districtshallmust each year, as long as it is 426.14 indebted to the state, levy for debt service (i) the amount of 426.15 its maximum effort debt service levy or (ii) the amount of its 426.16 required debt service levy, whichever is greater, except as the 426.17 required debt service levy may be reduced by a loan under 426.18 section 124.42. The district shall remit payments to the 426.19 commissioner according to section 124.45. 426.20 (c) The commissioner shall supervise the collection of 426.21 outstanding accounts due the fund and may, by notice to the 426.22 proper county auditor, require the maximum levy to be made as 426.23 required in this subdivision. Interest on capital loans must be 426.24 paid on December 15 of the year after the year the loan is 426.25 granted and annually in later years.On or beforeBy September 426.26 30in each year, the commissioner shall notify the county 426.27 auditor of each county containing taxable property situated 426.28 within theschooldistrict of the amount of the maximum effort 426.29 debt service levy of the district for that year. The county 426.30 auditor or auditors shall extend upon the tax rolls an ad 426.31 valorem tax upon all taxable property within the district in the 426.32 aggregate amount so certified. 426.33 Sec. 60. Minnesota Statutes 1996, section 124.431, 426.34 subdivision 12, is amended to read: 426.35 Subd. 12. [LOAN FORGIVENESS.] If any capital loan is not 426.36 paid within 50 years after it is granted from maximum effort 427.1 debt service levies in excess of required debt service levies, 427.2 the liability of theschooldistrict on the loan is satisfied 427.3 and discharged and interest on the loan ceases. 427.4 Sec. 61. Minnesota Statutes 1996, section 124.431, 427.5 subdivision 13, is amended to read: 427.6 Subd. 13. [PARTICIPATION BY COUNTY AUDITOR; RECORD OF 427.7 CONTRACT; PAYMENT OF LOAN.] Theschooldistrictshallmust file 427.8 a copy of the capital loan contract with the county auditor of 427.9 each county in which any part of the district is situated. The 427.10 county auditor shall enter the capital loan, evidenced by the 427.11 contract, in the auditor's bond register. The commissioner 427.12 shall keep a record of each capital loan and contract showing 427.13 the name and address of the district, the date of the contract, 427.14 and the amount of the loan initially approved. On receipt of 427.15 the resolution required in subdivision 11, the commissioner 427.16 shall issue warrants, which may be dispersed in accordance with 427.17 the schedule in the contract, on the capital loan account for 427.18 the amount that may be disbursed under subdivision 1. Interest 427.19 on each disbursement of the capital loan amount accrues from the 427.20 date on which the state treasurer issues the warrant. 427.21 Sec. 62. Minnesota Statutes 1996, section 124.431, 427.22 subdivision 14, is amended to read: 427.23 Subd. 14. [BOND SALE LIMITATIONS.] A district having an 427.24 outstanding state loan must not issue and sell any bonds on the 427.25 public market, except to refund state loans, unless it agrees to 427.26 make the maximum effort debt service levy in each later year at 427.27 the higher rate provided in section 124.38, subdivision 7, and 427.28 unless it schedules the maturities of the bonds according to 427.29 section 475.54, subdivision 2. A district that refunds bonds at 427.30 a lower interest rate may continue to make the maximum effort 427.31 debt service levy in each later year at the current rate 427.32 provided in section 124.38, subdivision 7, if the district can 427.33 demonstrate to the commissioner's satisfaction that the 427.34 district's repayments of the state loan will not be reduced 427.35 below the previous year's level. The districtshallmust report 427.36 each sale to the commissionerof children, families, and428.1learning. 428.2 After a district's capital loan has been outstanding for 20 428.3 years, the district must not issue bonds on the public market 428.4 except to refund the loan. 428.5 Sec. 63. Minnesota Statutes 1996, section 124.44, is 428.6 amended to read: 428.7 124.44 [PREPAYMENTS.] 428.8Any schoolA district may at any time pay the entire 428.9 principal or part thereof and interest then due on a note or 428.10 contract held by the state, out of any moneys not needed for 428.11 school purposes, and. The district may issue and sell its 428.12 refunding bonds in accordance with chapter 475, for such 428.13 purpose, by actions of its school board and without the 428.14 necessity of a vote by its electors, if such refunding bonds 428.15 plus its net debt does not exceed the debt limit prescribed 428.16 bysaidchapter 475. Any such refunding bonds may bear interest 428.17 at a rate or rates higher or lower than the rate payable on the 428.18 loan or loans refunded thereby. 428.19 Sec. 64. Minnesota Statutes 1997 Supplement, section 428.20 124.45, subdivision 2, is amended to read: 428.21 Subd. 2. [APPLICATION OF PAYMENTS.] The commissioner shall 428.22 apply payments received under the maximum effort school aid law 428.23 and aids withheld according to subdivision 1, paragraph (b), as 428.24 follows: First, to payment of interest accrued on its notes, if 428.25 any; second, to interest on its contracts, if any; third, toward 428.26 principal of its notes, if any; and last, toward principal of 428.27 its contracts, if any. While more than one note or more than 428.28 one contract is held, priority of payment of interestshallmust 428.29 be given to the one of earliest date, and after interest accrued 428.30 on all notes is paid, similar priority shall be given in the 428.31 application of any remaining amount to the payment of 428.32 principal. In any year when the receipts from a district are 428.33 not sufficient to pay the interest accrued on any of its notes 428.34 or contracts, the deficiencyshallmust be added to the 428.35 principal, and the commissioner shall notify the district and 428.36 each county auditor concerned of the new amount of principal of 429.1 the note or contract. 429.2 Sec. 65. Minnesota Statutes 1996, section 124.46, as 429.3 amended by Laws 1997, chapter 187, article 5, section 17, is 429.4 amended to read: 429.5 124.46 [ISSUANCE AND SALE OF BONDS.] 429.6 Subdivision 1. [CERTIFICATION.] On or before October 1 in 429.7 each year, the commissioner shall certify to the commissioner of 429.8 finance the amount anticipated to be needed for debt service 429.9 loans and capital loans to be made under the maximum effort 429.10 school aid law prior to October 1 in the following year. Each 429.11 such certification of the commissioner shall also state an 429.12 estimate of the dates and amounts the certified amount will be 429.13 needed in the maximum effort school loan fund and an estimate as 429.14 to the years and amounts in which payments on debt service loans 429.15 and capital loans will be received. 429.16 Subd. 2. [ISSUANCE AND SALE OF BONDS; COMMISSIONER OF 429.17 FINANCE.] Upon receipt of each such certification, subject to 429.18 authorization as provided in subdivision 4, the commissioner of 429.19 finance shall from time to time as needed issue and sell state 429.20 of Minnesota school loan bonds in the aggregate principal amount 429.21 stated in the commissioner's certificate, for the prompt and 429.22 full payment of which, with the interest thereon, the full 429.23 faith, credit, and taxing powers of the state are hereby 429.24 irrevocably pledged, and. The commissioner of finance shall 429.25 credit the net proceeds oftheirthe sale of the bonds to the 429.26 purposes for which they are appropriated by section 124.40, 429.27 subdivision 1.SuchThe bonds shall be issued and sold at such 429.28 price, in such manner, in such number of series, at such times, 429.29 and in such form and denominations, shall bear such dates of 429.30 issue and of maturity, either without option of prior redemption 429.31 or subject to prepayment upon such notice and at such times and 429.32 prices, shall bear interest at such rate or rates and payable at 429.33 such intervals, shall be payable at such bank or banks within or 429.34 without the state, with such provisions for registration, 429.35 conversion, and exchange, and for the issuance of notes in 429.36 anticipation of the sale and delivery of definitive bonds, and 430.1 in accordance with such further provisions as the commissioner 430.2 of finance shall determine subject to the limitations stated in 430.3 this subdivision (but not subject to chapter 14, including 430.4 section 14.386). The maturity dateshall in no casemust not be 430.5 more than 20 years after the date of issue of any bond and the 430.6 principal amountsand. The due datesshallmust conform as near 430.7 as may be with the commissioner's estimates of dates and amounts 430.8 of payments to be received on debt service and capital loans. 430.9 The bonds and any interest couponsappurtenantattached to them 430.10shallmust be executed by the commissioner of finance and 430.11 attested by the state treasurer under their official seals. The 430.12 signatures of these officers and their seals may be printed, 430.13 lithographed, stamped, engraved, or otherwise reproduced 430.14 thereon. Each bondshallmust be authenticated by the manual 430.15 signature on its face of one of the officers or a person 430.16 authorized to sign on behalf of a bank or trust company 430.17 designated by the commissioner to act as registrar or other 430.18 authenticating agent. The commissioner of finance is authorized 430.19 and directed to ascertain and certify to purchasers of the bonds 430.20 the performance and existence of all acts, conditions, and 430.21 things necessary to make them valid and binding general 430.22 obligations of the state of Minnesota in accordance with their 430.23 terms. 430.24 Subd. 3. [SCHOOL LOAN BOND ACCOUNT.] The commissioner of 430.25 finance shall maintain a separate school loan bond account in 430.26 the state bond fund, showing all money transferred to that fund 430.27 for the payment of school loan bonds and all income received 430.28 from the investment of such money. Onthe first day ofDecember 430.29in each year there1, the commissioner of finance shallbe430.30transferredtransfer to the bond accountall or soas much of 430.31 the money then on hand in the loan repayment account in the 430.32 maximum effort school loan fund as will be sufficient, with the 430.33 balance then on hand in said bond account, to pay all principal 430.34 and interestthen and theretoforedue and to become due within 430.35 the next ensuing year andto and includingJuly 1 in the second 430.36 ensuing year on school loan bonds issued and sold pursuant to 431.1 this section.In the event that moneys areIf money is not 431.2 available forsuchthe transfer in the full amount required, and 431.3 if any principal or interest on school loan bonds should become 431.4 due at any time when there is not on hand a sufficient amount 431.5 from any of the sources herein appropriated for the payment 431.6 thereof, the moneysshallmust be paid out of the general fund 431.7 in the state treasury according to section 16A.641, and the 431.8 amount necessary therefor is hereby appropriated. 431.9 Subd. 4. [AUTHORITY FOR ISSUANCE OF BONDS.] Bonds shall be 431.10 issued pursuant to this section only when authorized by a law 431.11 specifying the purpose thereof and the maximum amount of the 431.12 proceeds authorized to be expended for that purpose. Any act 431.13 authorizing the issuance of bonds in the manner provided in this 431.14 section shall, together with this section, constitute complete 431.15 authority for the issue, and the bonds shall not be subject to 431.16 the restrictions or limitations contained in any other law. 431.17 Bonds issued pursuant hereto may be sold at public or private 431.18 sale and shall be deemed "authorized securities" within the 431.19 provisions of section 50.14 and acts amendatory thereof or 431.20 supplemental thereto. 431.21 Sec. 66. Minnesota Statutes 1996, section 124.492, is 431.22 amended to read: 431.23 124.492 [POLICY AND PURPOSE.] 431.24 Because of the rates of decline in school-aged population, 431.25 population shifts and economic changes that the state has 431.26 experienced in recent years and anticipates in future years, and 431.27 because in some instances localschooldistricts have not, and 431.28 will not be able to provide the required construction funds 431.29 through local property taxes, the purpose of the cooperative 431.30 secondary facilities grant program is to provide an incentive to 431.31 encourage cooperation in making available to all secondary 431.32 students those educational programs, services and facilities 431.33 that are most efficiently and effectively provided by a 431.34 cooperative effort of several school districts. The policy and 431.35 purpose of sections 124.493 to 124.495 is to use the credit of 431.36 the state, to a limited degree, to provide grants to cooperating 432.1 groups ofschooldistricts to improve and expand the educational 432.2 opportunities and facilities available to their secondary 432.3 students. 432.4 Sec. 67. Minnesota Statutes 1996, section 124.493, 432.5 subdivision 1, is amended to read: 432.6 Subdivision 1. [APPROVAL BY COMMISSIONER.] To the extent 432.7 money is available, the commissionerof children, families, and432.8learningmay approve projects from applications submitted under 432.9 section 124.494. The grant money must be used only to acquire, 432.10 construct, remodel or improve the building or site of a 432.11 cooperative secondary facility under contracts to be entered 432.12 into within 15 months after the date on which each grant is 432.13 awarded. 432.14 Sec. 68. Minnesota Statutes 1996, section 124.494, 432.15 subdivision 1, is amended to read: 432.16 Subdivision 1. [QUALIFICATION.] Any group ofschool432.17 districts that meets the criteria required under subdivision 2 432.18 may apply for an incentive grant for construction of a new 432.19 secondary facility or for remodeling and improving an existing 432.20 secondary facility. A grant for new construction must not 432.21 exceed the lesser of $5,000,000 or 75 percent of the approved 432.22 construction costs of a cooperative secondary education 432.23 facility. A grant for remodeling and improving an existing 432.24 facility must not exceed $200,000. 432.25 Sec. 69. Minnesota Statutes 1996, section 124.494, 432.26 subdivision 2, is amended to read: 432.27 Subd. 2. [REVIEW BY COMMISSIONER.] (a)AnyA group of 432.28 districts that submits an application for a grantshallmust 432.29 submit a proposal to the commissioner for review and comment 432.30 under section 121.15, and. The commissioner shall prepare a 432.31 review and comment on the proposed facility by July 1 of an 432.32 odd-numbered year, regardless of the amount of the capital 432.33 expenditure required to acquire, construct, remodel or improve 432.34 the secondary facility. The commissionermustshall not approve 432.35 an application for an incentive grant for any secondary facility 432.36 unless the facility receives a favorable review and comment 433.1 under section 121.15 and the following criteria are met: 433.2 (1) a minimum of two or more districts, with kindergarten 433.3 to grade 12 enrollments in each district of no more than 1,200 433.4 pupils, enter into a joint powers agreement; 433.5 (2) a joint powers board representing all participating 433.6 districts is established under section 471.59 to govern the 433.7 cooperative secondary facility; 433.8 (3) the planned secondary facility will result in the joint 433.9 powers district meeting the requirements of Minnesota Rules, 433.10 parts 3500.2010 and 3500.2110; 433.11 (4) at least 198 pupils would be served in grades 10 to 12, 433.12 264 pupils would be served in grades 9 to 12, or 396 pupils 433.13 would be served in grades 7 to 12; 433.14 (5) no more than one superintendent is employed by the 433.15 joint powers board as a result of the cooperative secondary 433.16 facility agreement; 433.17 (6) a statement of need is submitted, that may include 433.18 reasons why the current secondary facilities are inadequate, 433.19 unsafe or inaccessible to the handicapped; 433.20 (7) an educational plan is prepared, that includes input 433.21 from both community and professional staff; 433.22 (8) a combined seniority list for all participating 433.23 districts is developed by the joint powers board; 433.24 (9) an education program is developed that provides for 433.25 more learning opportunities and course offerings, including the 433.26 offering of advanced placement courses, for students than is 433.27 currently available in any single member district; 433.28 (10) a plan is developed for providing instruction of any 433.29 resident students in other districts when distance to the 433.30 secondary education facility makes attendance at the facility 433.31 unreasonably difficult or impractical; and 433.32 (11) the joint powers board established under clause (2) 433.33 discusses with technical colleges located in the area how 433.34 vocational education space in the cooperative secondary facility 433.35 could be jointly used for secondary and post-secondary purposes. 433.36 (b) To the extent possible, the joint powers board is 434.1 encouraged to provide for severance pay or for early retirement 434.2 incentives under section 125.611, for any teacher or 434.3 administrator, as defined under section 125.12, subdivision 1, 434.4 who is placed on unrequested leave as a result of the 434.5 cooperative secondary facility agreement. 434.6 (c) For the purpose of paragraph (a), clause (8), each 434.7schooldistrict must be considered to have started school each 434.8 year on the same date. 434.9 (d) The districts may develop a plan that provides for the 434.10 location of social service, health, and other programs serving 434.11 pupils and community residents within the cooperative secondary 434.12 facility. The commissioner shall consider this plan when 434.13 preparing a review and comment on the proposed facility. 434.14 (e) The districtsshallmust schedule and conduct a meeting 434.15 on library services. The school districts, in cooperation with 434.16 the regional public library system and its appropriate member 434.17 libraries,shallmust discuss the possibility of including 434.18 jointly operated library services at the cooperative secondary 434.19 facility. 434.20 (f) Theschoolboard of a district that has reorganized 434.21 under section 122.23 or 122.243 and that is applying for a grant 434.22 for remodeling or improving an existing facility may act in the 434.23 place of a joint powers board to meet the criteria of this 434.24 subdivision. 434.25 Sec. 70. Minnesota Statutes 1996, section 124.494, 434.26 subdivision 2a, is amended to read: 434.27 Subd. 2a. [REORGANIZING DISTRICTS.] Aschooldistrict that 434.28 is a member of a joint powers board established under 434.29 subdivision 2 and that is planning to reorganize under section 434.30 122.21, 122.22, or 122.23 must notify the joint powers board one 434.31 year in advance of the effective date of the reorganization. 434.32 Notwithstanding section 471.59 or any other law to the contrary, 434.33 the board of a district that reorganizes under section 122.21, 434.34 122.22, or 122.23 may appoint representatives to the joint 434.35 powers board who will serve on the joint powers board for two 434.36 years after the effective date of the reorganization if 435.1 authorized in the agreement establishing the joint powers board 435.2 to govern the cooperative secondary facility. These 435.3 representatives shall have the same powers as representatives of 435.4 any other school district under the joint powers agreement. 435.5 Sec. 71. Minnesota Statutes 1996, section 124.494, 435.6 subdivision 3, is amended to read: 435.7 Subd. 3. [DISTRICT PROCEDURES.] A joint powers board of a 435.8 secondary district established under subdivision 2 or a school 435.9 board of a reorganized district that intends to apply for a 435.10 grantshallmust adopt a resolution stating the proposed costs 435.11 of the project, the purpose for which the costs are to be 435.12 incurred, and an estimate of the dates when the facilities for 435.13 which the grant is requested will be contracted for and 435.14 completed. Applications for the state grants must be 435.15 accompanied by (a) a copy of the resolution, (b) a certificate 435.16 by the clerk and treasurer of the joint powers board showing the 435.17 current outstanding indebtedness of each member district, and 435.18 (c) a certificate by the county auditor of each county in which 435.19 a portion of the joint powers district lies showing the 435.20 information in the auditor's official records that is required 435.21 to be used in computing the debt limit of the district under 435.22 section 475.53, subdivision 4. The clerk's and treasurer's 435.23 certificateshallmust show, as to each outstanding bond issue 435.24 of each member district, the amount originally issued, the 435.25 purpose for which issued, the date of issue, the amount 435.26 remaining unpaid as of the date of the resolution, and the 435.27 interest rates and due dates and amounts of principal thereon. 435.28 Applications and necessary data must be in the form prescribed 435.29 by the commissioner and the rules of the state board of 435.30 education. Applications must be received by the commissioner by 435.31 September 1 of an odd-numbered year. When an application is 435.32 received, the commissioner shall obtain from the commissioner of 435.33 revenue, and from the public utilities commission when required, 435.34 the information in their official records that is required to be 435.35 used in computing the debt limit of the joint powers district 435.36 under section 475.53, subdivision 4. 436.1 Sec. 72. Minnesota Statutes 1996, section 124.494, 436.2 subdivision 5, is amended to read: 436.3 Subd. 5. [REFERENDUM; BOND ISSUE.] Within 180 days after 436.4 being awarded a grant for a new facility under subdivision 4, 436.5 the joint powers boardshallmust submit the question of 436.6 authorizing the borrowing of funds for the secondary facility to 436.7 the voters of the joint powers district at a special election, 436.8 which may be held in conjunction with the annual election of the 436.9 school board members of the member districts. The question 436.10 submittedshallmust state the total amount of funding needed 436.11 from all sources. A majority of those voting in the affirmative 436.12 on the question is sufficient to authorize the joint powers 436.13 board to accept the grant and to issue the bonds on public sale 436.14 in accordance with chapter 475. The clerk of the joint powers 436.15 board must certify the vote of the bond election to the 436.16 commissionerof children, families, and learning. If the 436.17 question is approved by the voters, the commissioner shall 436.18 notify the approved applicant districts that the grant amount 436.19 certified under subdivision 4 is available and appropriated for 436.20 payment under this subdivision. If a majority of those voting 436.21 on the question do not vote in the affirmative, the grant must 436.22 be canceled. 436.23 Sec. 73. Minnesota Statutes 1996, section 124.494, 436.24 subdivision 7, is amended to read: 436.25 Subd. 7. [CONSOLIDATION.] A group of districts that 436.26 operates a cooperative secondary facility that was acquired, 436.27 constructed, remodeled, or improved under this section and 436.28 implements consolidation proceedings according to section 436.29 122.23, may propose a temporary school board structure in the 436.30 petition or resolution required under section 122.23, 436.31 subdivision 2. The districts may propose the number of existing 436.32 school board members of each district to become members of the 436.33schoolboard of the consolidated district and a method to 436.34 gradually reduce the membership to six or seven. The proposal 436.35shallmust be approved, disapproved, or modified by the state 436.36 board of education. The election requirements of section 437.1 122.23, subdivision 18, do not apply to a proposal approved by 437.2 the state board. Elections conducted after the effective date 437.3 of the consolidation are subject to the Minnesota election law. 437.4 Sec. 74. Minnesota Statutes 1996, section 124.4945, is 437.5 amended to read: 437.6 124.4945 [LEVY FOR SEVERANCE PAY.] 437.7 A joint powers board established under section 124.494 may 437.8 make a levy to provide severance pay and early retirement 437.9 incentives under section 125.611, for any teacher as defined 437.10 under section 125.12, subdivision 1, who is placed on 437.11 unrequested leave as a result of the cooperative secondary 437.12 facility agreement. A joint powers board making a levyshall437.13 must certify to each participating district tax levies 437.14 sufficient to raise the amount necessary to provide the 437.15 district's portion of severance pay and early retirement 437.16 incentives. The tax levy certified to each district must be 437.17 expressed as a local tax rate, that, when applied to the 437.18 adjusted net tax capacity of all of the participating districts 437.19 raises the amount necessary to provide severance pay and early 437.20 retirement incentives. Each participating school districtshall437.21 must include the levy in the next tax roll which it shall 437.22 certify to the county auditor, andshallmust remit the 437.23 collections of the levy to the joint powers board. 437.24 Sec. 75. Minnesota Statutes 1996, section 124.646, is 437.25 amended to read: 437.26 124.646 [LUNCH AID; FOOD SERVICE ACCOUNTING.] 437.27 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 437.28 year,schoolthe state must pay districts participating in the 437.29 national school lunch programshall be paid by the state inthe 437.30 amount of 6.5 cents for each full paid, reduced, and free 437.31 student lunch served to students in the district. 437.32 Subd. 3. [APPLICATION.] School districts shall apply to 437.33 the departmentof children, families, and learningfor this 437.34 payment on forms provided by the department. 437.35 Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses 437.36 described in this subdivision must be recorded as provided in 438.1 this subdivision. 438.2 (b) In eachschooldistrict, the expenses for a school food 438.3 service program for pupils must be attributed to a school food 438.4 service fund. Under a food service program, the school food 438.5 service may prepare or serve milk, meals, or snacks in 438.6 connection with school or community service activities. 438.7 (c) Revenues and expenditures for food service activities 438.8 must be recorded in the food service fund. The costs of 438.9 processing applications, accounting for meals, preparing and 438.10 serving food, providing kitchen custodial services, and other 438.11 expenses involving the preparing of meals or the kitchen section 438.12 of the lunchroom may be charged to the food service fund or to 438.13 the general fund of the district. The costs of lunchroom 438.14 supervision, lunchroom custodial services, lunchroom utilities, 438.15 and other administrative costs of the food service program must 438.16 be charged to the general fund. 438.17 That portion of superintendent and fiscal manager costs 438.18 that can be documented as attributable to the food service 438.19 program may be charged to the food service fund provided that 438.20 the school district does not employ or contract with a food 438.21 service director or other individual who manages the food 438.22 service program, or food service management company. If the 438.23 cost of the superintendent or fiscal manager is charged to the 438.24 food service fund, the charge must be at a wage rate not to 438.25 exceed the statewide average for food service directors as 438.26 determined by the departmentof children, families, and learning. 438.27 (d) Capital expenditures for the purchase of food service 438.28 equipment must be made from the capital fund and not the food 438.29 service fund, unless two conditions apply: 438.30 (1) the unreserved balance in the food service fund at the 438.31 end of the last fiscal year is greater than the cost of the 438.32 equipment to be purchased; and 438.33 (2) the departmentof children, families, and learninghas 438.34 approved the purchase of the equipment. 438.35 (e) If the two conditions set out in paragraph (d) apply, 438.36 the equipment may be purchased from the food service fund. 439.1 (f) If a deficit in the food service fund exists at the end 439.2 of a fiscal year, and the deficit is not eliminated by revenues 439.3 from food service operations in the next fiscal year, then the 439.4 deficit must be eliminated by a permanent fund transfer from the 439.5 general fund at the end of that second fiscal year. However, if 439.6 a district contracts with a food service management company 439.7 during the period in which the deficit has accrued, the deficit 439.8 must be eliminated by a payment from the food service management 439.9 company. 439.10 (g) Notwithstanding paragraph (f), a district may incur a 439.11 deficit in the food service fund for up to three years without 439.12 making the permanent transfer if the district submits to the 439.13 commissioner by January 1 of the second fiscal year a plan for 439.14 eliminating that deficit at the end of the third fiscal year. 439.15 (h) If a surplus in the food service fund exists at the end 439.16 of a fiscal year for three successive years, a district may 439.17 recode for that fiscal year the costs of lunchroom supervision, 439.18 lunchroom custodial services, lunchroom utilities, and other 439.19 administrative costs of the food service program charged to the 439.20 general fund according to paragraph (c) and charge those costs 439.21 to the food service fund in a total amount not to exceed the 439.22 amount of surplus in the food service fund. 439.23 Sec. 76. Minnesota Statutes 1996, section 124.6462, is 439.24 amended to read: 439.25 124.6462 [LACTOSE REDUCED MILK.] 439.26 If a nonpublic school orschooldistrict 439.27 (1) receives school lunch aid under section 124.646 or 439.28 participates in the school breakfast program; and 439.29 (2) receives a written request from the parent of a pupil 439.30 who is lactose intolerant, the nonpublic school orschool439.31 districtshallmust make available lactose reduced milk; milk 439.32 fortified with lactase in liquid, tablet, granular, or other 439.33 form; or milk to which lactobacillus acidophilus has been added 439.34 for the pupil. Notwithstanding any law, local ordinance, or 439.35 local regulation to the contrary, a school may pour or serve 439.36 portions of any product required by this section from a large 440.1 container of the product at the time and place the pupil is 440.2 being served. 440.3 Sec. 77. Minnesota Statutes 1996, section 124.6469, 440.4 subdivision 3, is amended to read: 440.5 Subd. 3. [PROGRAM REIMBURSEMENT.] (a) State funds are 440.6 provided to reimburse school breakfasts. Each school year, the 440.7 stateshallmust reimburse schools in the amount of 5.1 cents 440.8 for each fully paid breakfast and for each free and reduced 440.9 price breakfast not eligible for the "severe need" rate. 440.10 (b) In addition to paragraph (a), each school year the 440.11 stateshallmust reimburse schools 10.5 cents for each free and 440.12 reduced price breakfast not eligible for the "severe need" rate 440.13 if between 33 and 40 percent of the school lunches served during 440.14 the second preceding school year were served free or at a 440.15 reduced price. 440.16 Sec. 78. Minnesota Statutes 1996, section 124.647, is 440.17 amended to read: 440.18 124.647 [WAIVER; PILOT SCHOOL BREAKFAST PROGRAMS.] 440.19 The commissionerof children, families, and learningshall 440.20 request a waiver from the United States government as necessary 440.21 to allow pilot school breakfast programs to be implemented in 440.22schooldistricts where no program currently exists. The pilot 440.23 school breakfast programshallmust provide students with 440.24 breakfasts designed to be taken with the student and consumed 440.25 away from the school site. 440.26 Sec. 79. Minnesota Statutes 1996, section 124.6471, is 440.27 amended to read: 440.28 124.6471 [SCHOOL BREAKFAST INCENTIVE.] 440.29 The commissionerof children, families, and learningmay 440.30 provide a cash incentive to schools to increase participation in 440.31 school breakfast programs or to initiate a school breakfast 440.32 program if none currently exists. 440.33 Sec. 80. Minnesota Statutes 1996, section 124.6472, is 440.34 amended to read: 440.35 124.6472 [SCHOOL BREAKFASTDISTRICTS TO OFFER PROGRAM.] 440.36 Subdivision 1. [BREAKFAST REQUIRED.] Aschooldistrict 441.1shallmust offer a school breakfast program in every school 441.2 building in which at least 33 percent of the school lunches 441.3 served during the second preceding school year were served free 441.4 or at a reduced price. 441.5 Subd. 2. [EXEMPTION.] Subdivision 1 does not apply to a 441.6 school in which fewer than 25 pupils are expected to take part 441.7 in the program. It also does not apply to aschooldistrict 441.8 that does not participate in the national school lunch program. 441.9 Sec. 81. Minnesota Statutes 1996, section 124.648, as 441.10 amended by Laws 1997, chapter 187, article 4, section 4, is 441.11 amended to read: 441.12 124.648 [MILK PROGRAM.] 441.13 Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature 441.14 finds that for best health and well-being, school children in 441.15 the state should receive at least one serving of milk each day. 441.16 The school milk program established in this section is to 441.17 provideschooldistricts in the state with added resources so 441.18 that all kindergarten students in public and nonpublic schools 441.19 may have access to wholesome milk on a daily basis. 441.20 Subd. 2. [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 441.21schooldistrict in the state is encouraged to participate in the 441.22 state-supported school milk program for kindergartners. 441.23 Participating districtsshallmust provide one serving of milk 441.24 on each school day to each kindergarten student attending a 441.25 public or nonpublic school in the district. No student is 441.26 required to accept the milk that is provided by the district. 441.27 The program must be promoted and operated under the direction of 441.28 the commissioner or the commissioner's designee. 441.29 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 441.30 (a) The commissioner shall: 441.31 (1) encourage all districts to participate in the school 441.32 milk program for kindergartners; 441.33 (2) prepare program guidelines, not subject to chapter 14 441.34 until July 1, 1998, which will effectively and efficiently 441.35 distribute appropriated and donated money to participating 441.36 districts; and 442.1 (3) seek donations and matching funds from appropriate 442.2 private and public sources. 442.3 (b) Program guidelines may provide for disbursement to 442.4 districts through a mechanism of prepayments or by reimbursement 442.5 for approved program expenses. 442.6 (c) It is suggested that the benefits of the school milk 442.7 program may reach the largest number of kindergarten students if 442.8 districts are allowed to submit annual bids stating the 442.9 per-serving level of support that would be acceptable to the 442.10districtdistricts for their participation in the program. The 442.11 commissioner would review all bids received and approve bids in 442.12 sufficient number and value to maximize the provision of milk to 442.13 kindergarten students consistent with available funds. 442.14 Subd. 4. [REIMBURSEMENT.] In accordance with program 442.15 guidelines, the commissioner shall prepay or reimburse 442.16 participatingschooldistricts for the state share of the 442.17 district's cost for providing milk to kindergarten students. 442.18 Sec. 82. Minnesota Statutes 1996, section 124.71, 442.19 subdivision 1, is amended to read: 442.20Subdivision 1.School district as used in sections 124.71 442.21 to 124.76 means any school district in the state of Minnesota, 442.22 however organized and wherever located. 442.23 Sec. 83. Minnesota Statutes 1996, section 124.72, is 442.24 amended to read: 442.25 124.72 [APPLICATION OF LIMITING TAX LEGISLATION.] 442.26 Notwithstanding the provisions of section 471.69 or section 442.27 471.75, or of any other provision of law which by per capita 442.28 limitation, local tax rate limitation, or otherwise, limits the 442.29 power of aschooldistrict to incur any debt or to issue any 442.30 warrant or order, aschooldistrict has the powers in sections 442.31 124.71 to 124.76 specifically conferred upon it and all powers 442.32 incident and necessary to carrying out the purposes of sections 442.33 124.71 to 124.76. 442.34 Sec. 84. Minnesota Statutes 1996, section 124.73, is 442.35 amended to read: 442.36 124.73 [AUTHORITY TO BORROW MONEY,; LIMITATIONS.] 443.1 Subdivision 1. [BORROWING AUTHORITY.] The board of any 443.2 school district may borrow money upon negotiable tax 443.3 anticipation certificates of indebtedness, in the manner and 443.4 subject to the limitations set forth in sections 124.71 to 443.5 124.76, for the purpose of anticipating general 443.6 taxestheretoforealready levied by the district for school 443.7 purposes, but. The aggregate ofsuchthe borrowing under this 443.8 subdivisionshallmust never exceed 75 percent ofsuchthe taxes 443.9 which are due and payable in the calendar year, and as to which 443.10 taxes no penalty for nonpayment or delinquency has attached. In 443.11 determining the amount of taxes due and payable in the calendar 443.12 year, any amounts paid by the state to replace such taxes, 443.13 whether paid in that calendar year or not,shallmust be 443.14 included. 443.15 Subd. 2. [LIMITATIONS.] The board may also borrow money in 443.16 the manner and subject to the limitations set forth in sections 443.17 124.71 to 124.76 in anticipation of receipt of state aids for 443.18 schools as defined in Minnesota Statutes and of federal school 443.19 aids to be distributed by or through the departmentof children,443.20families, and learning. The aggregate of such borrowings under 443.21 this subdivision shall never exceed 75 percent of such aids 443.22 which are receivable by said school district in the school year 443.23 (from July 1 to June 30) in which the money is borrowed, as 443.24 estimated and certified by the commissioner. 443.25 Sec. 85. Minnesota Statutes 1996, section 124.74, is 443.26 amended to read: 443.27 124.74 [ENABLING RESOLUTION; FORM OF CERTIFICATES OF 443.28 INDEBTEDNESS.] 443.29 The board may authorize and effect such borrowing, and may 443.30 issue such certificates of indebtedness upon passage of a 443.31 resolution specifying the amount and purposes for which it deems 443.32 such borrowing is necessary, which. The resolutionshallmust 443.33 be adopted by a vote of at least two-thirds of its members. The 443.34 boardshallmust fix the amount, date, maturity, form, 443.35 denomination, and other detailsthereofof the certificates of 443.36 indebtedness, not inconsistentherewith, and shallwith this 444.1 chapter. The board must fix the date and place for receipt of 444.2 bids for the purchasethereofof the certificates when bids are 444.3 required and direct the clerk to give noticethereofof the date 444.4 and place for bidding. 444.5 Sec. 86. Minnesota Statutes 1996, section 124.75, is 444.6 amended to read: 444.7 124.75 [REPAYMENT; MATURITY DATE OF CERTIFICATES; 444.8 INTEREST.] 444.9 The proceeds of the current tax levies and future state aid 444.10 receipts or other school funds which may become availableshall444.11 must be applied to the extent necessary to repay such 444.12 certificates and the full faith and credit of theschool444.13 district shall be pledged totheirpayment of the certificates. 444.14 Certificates issued in anticipation of receipt of aids shall 444.15 mature not later than the anticipated date of receipt of the 444.16 aidsso anticipatedas estimated by the commissioner, but in no 444.17 event later than three months after the close of the school year 444.18 in which issued. Certificates issued in anticipation of receipt 444.19 of taxes shall mature not later than the anticipated date of 444.20 receipt in full of the taxesso anticipated, but in no event 444.21 later than three months after the close of the calendar year in 444.22 which issued. The certificatesshallmust be sold at not less 444.23 than par. The certificatesshallmust bear interest after 444.24 maturity until paid at the rate they bore before maturity and 444.25 any interest accruing before or after maturityshallmust be 444.26 paid from any available school funds. 444.27 Sec. 87. Minnesota Statutes 1996, section 124.755, 444.28 subdivision 2, is amended to read: 444.29 Subd. 2. [NOTIFICATIONS; PAYMENT; APPROPRIATION.] (a) If a 444.30schooldistrict believes that it may be unable to make a 444.31 principal or interest payment on any outstanding debt obligation 444.32 on the date that payment is due, it must notify the commissioner 444.33of children, families, and learning of that factas soon as 444.34 possible, but not less than 15 working days before the date that 444.35 principal or interest payment is due. The noticeshallmust 444.36 include the name of theschooldistrict, an identification of 445.1 the debt obligation issue in question, the date the payment is 445.2 due, the amount of principal and interest due on the payment 445.3 date, the amount of principal or interest that theschool445.4 district will be unable to repay on that date, the paying agent 445.5 for the debt obligation, the wire transfer instructions to 445.6 transfer funds to that paying agent, and an indication as to 445.7 whether a payment is being requested by the district under this 445.8 section. If a paying agent becomes aware of a potential 445.9 default, it shall inform the commissionerof children, families,445.10and learningof that fact. After receipt of a notice which 445.11 requests a payment under this section, after consultation with 445.12 theschooldistrict and the paying agent, and after verification 445.13 of the accuracy of the information provided, the commissionerof445.14children, families, and learningshall notify the commissioner 445.15 of finance of the potential default. The notice must include a 445.16 final figure as to the amount due that the district will be 445.17 unable to repay on the date due. 445.18 (b) Except as provided in subdivision 9, upon receipt of 445.19 this notice from the commissionerof children, families, and445.20learning, which must include a final figure as to the amount due445.21that the school district will be unable to repay on the date445.22due, the commissioner of finance shall issue a warrant and 445.23 authorize the commissioner of children, families, and learning 445.24 to pay to the paying agent for the debt obligation the specified 445.25 amount on or before the date due. The amounts needed for the 445.26 purposes of this subdivision are annually appropriated to the 445.27 departmentof children, families, and learningfrom the state 445.28 general fund. 445.29 (c) The departments of children, families, and learning and 445.30 financeshallmust jointly develop detailed procedures for 445.31schooldistricts to notify the state that they have obligated 445.32 themselves to be bound by the provisions of this section, 445.33 procedures forschooldistricts and paying agents to notify the 445.34 state of potential defaults and to request state payment under 445.35 this section, and procedures for the state to expedite payments 445.36 to prevent defaults. The procedures are not subject to chapter 446.1 14. 446.2 Sec. 88. Minnesota Statutes 1996, section 124.755, 446.3 subdivision 3, is amended to read: 446.4 Subd. 3. [SCHOOL DISTRICT BOUND; INTEREST RATE ON STATE 446.5 PAID AMOUNT.] If, at the request of aschooldistrict, the state 446.6 has paid part or all of the principal or interest due on a 446.7schooldistrict's debt obligation on a specific date, theschool446.8 district is bound by all provisions of this section and the 446.9 amount paid shall bear taxable interest from the date paid until 446.10 the date of repayment at the state treasurer's invested cash 446.11 rate as it is certified by the commissioner of finance. 446.12 Interest shall only accrue on the amounts paid and outstanding 446.13 less the reduction in aid under subdivision 4 and other payments 446.14 received from the district. 446.15 Sec. 89. Minnesota Statutes 1996, section 124.755, 446.16 subdivision 4, is amended to read: 446.17 Subd. 4. [PLEDGE OF DISTRICT'S FULL FAITH AND CREDIT.] If, 446.18 at the request of aschooldistrict, the state has paid part or 446.19 all of the principal or interest due on aschooldistrict's debt 446.20 obligation on a specific date, the pledge of the full faith and 446.21 credit and unlimited taxing powers of theschooldistrict to 446.22 repay the principal and interest due on those debt obligations 446.23 shall also, without an election or the requirement of a further 446.24 authorization, become a pledge of the full faith and credit and 446.25 unlimited taxing powers of theschooldistrict to repay to the 446.26 state the amount paid, with interest. Amounts paid by the state 446.27shallmust be repaid in the order in which the state payments 446.28 were made. 446.29 Sec. 90. Minnesota Statutes 1996, section 124.755, 446.30 subdivision 5, is amended to read: 446.31 Subd. 5. [AID REDUCTION FOR REPAYMENT.] Except as provided 446.32 in this subdivision, the stateshallmust reduce the state aid 446.33 payable to theschooldistrict under chapters 124, 124A, and 446.34 273, according to the schedule in section 124.155, subdivision 446.35 2, by the amount paid by the state under this section on behalf 446.36 of theschooldistrict, plus the interest due on it, and the 447.1 amount reducedshallmust revert from the appropriate account to 447.2 the state general fund. Payments from the school endowment fund 447.3 or any federal aid payments shall not be reduced. If, after 447.4 review of the financial situation of theschooldistrict, the 447.5 commissionerof children, families, and learningadvises the 447.6 commissioner of finance that a total reduction of the aids would 447.7 cause an undue hardship on or an undue disruption of the 447.8 educational program of theschooldistrict, the commissionerof447.9children, families, and learning, with the approval of the 447.10 commissioner of finance, may establish a different schedule for 447.11 reduction of those aids to repay the state. The amount of aids 447.12 to be reduced are decreased by any amounts repaid to the state 447.13 by the school district from other revenue sources. 447.14 Sec. 91. Minnesota Statutes 1996, section 124.755, 447.15 subdivision 6, is amended to read: 447.16 Subd. 6. [TAX LEVY FOR REPAYMENT.] (a) With the approval 447.17 of the commissionerof children, families, and learning, a 447.18schooldistrict may levy in the year the state makes a payment 447.19 under this section an amount up to the amount necessary to 447.20 provide funds for the repayment of the amount paid by the state 447.21 plus interest through the date of estimated repayment by the 447.22schooldistrict. The proceeds of this levy may be used only for 447.23 this purpose unless they are in excess of the amount actually 447.24 due, in which case the excess shall be used to repay other state 447.25 payments made under this section or shall be deposited in the 447.26 debt redemption fund of the school district. This levy shall be 447.27 an increase in the levy limits of theschooldistrict for 447.28 purposes of section 275.065, subdivision 6. The amount of aids 447.29 to be reduced to repay the state shall be decreased by the 447.30 amount levied. This levy by theschooldistrict is not eligible 447.31 for debt service equalization under section 124.95. 447.32 (b) If the state is not repaid in full for a payment made 447.33 under this section by November 30 of the calendar year following 447.34 the year in which the state makes the payment, the commissioner 447.35of children, families, and learning mustshall require the 447.36schooldistrict to certify a property tax levy in an amount up 448.1 to the amount necessary to provide funds for repayment of the 448.2 amount paid by the state plus interest through the date of 448.3 estimated repayment by the school district. To prevent undue 448.4 hardship, the commissioner may allow the district to certify the 448.5 levy over a five-year period. The proceeds of the levy may be 448.6 used only for this purpose unless they are in excess of the 448.7 amount actually due, in which case the excess shall be used to 448.8 repay other state payments made under this section or shall be 448.9 deposited in the debt redemption fund of theschooldistrict. 448.10 This levy shall be an increase in the levy limits of the school 448.11 district for purposes of section 275.065, subdivision 6. If the 448.12 commissioner orders the district to levy, the amount of aids 448.13 reduced to repay the state shall be decreased by the amount 448.14 levied. This levy by theschooldistrict is not eligible for 448.15 debt service equalization under section 124.95 or any successor 448.16 provision. A levy under this subdivision must be explained as a 448.17 specific increase at the meeting required under section 275.065, 448.18 subdivision 6. 448.19 Sec. 92. Minnesota Statutes 1996, section 124.755, 448.20 subdivision 7, is amended to read: 448.21 Subd. 7. [ELECTION AS TO MANDATORY APPLICATION.] Aschool448.22 district may covenant and obligate itself, prior to the issuance 448.23 of an issue of debt obligations, to notify the commissionerof448.24children, families, and learningof a potential default and to 448.25 use the provisions of this section to guarantee payment of the 448.26 principal and interest on those debt obligations when due. If 448.27 theschooldistrict obligates itself to be bound by this 448.28 section, itshallmust covenant in the resolution that 448.29 authorizes the issuance of the debt obligations to deposit with 448.30 the paying agent three business days prior to the date on which 448.31 a payment is due an amount sufficient to make that payment or to 448.32 notify the commissionerof children, families, and learning448.33 under subdivision 1 that it will be unable to make all or a 448.34 portion of that payment. Aschooldistrict that has obligated 448.35 itselfshallmust include a provision in its agreement with the 448.36 paying agent for that issue that requires the paying agent to 449.1 inform the commissionerof children, families, and learningif 449.2 it becomes aware of a potential default in the payment of 449.3 principal or interest on that issue or if, on the day two 449.4 business days prior to the date a payment is due on that issue, 449.5 there are insufficient funds to make the payment on deposit with 449.6 the paying agent. If aschooldistrict either covenants to be 449.7 bound by this section or accepts state payments under this 449.8 section to prevent a default of a particular issue of debt 449.9 obligations, the provisions of this section shall be binding as 449.10 to that issue as long as any debt obligation of that issue 449.11 remain outstanding. If the provisions of this section are or 449.12 become binding for more than one issue of debt obligations and a 449.13 district is unable to make payments on one or more of those 449.14 issues,it shallthe district must continue to make payments on 449.15 the remaining issues. 449.16 Sec. 93. Minnesota Statutes 1996, section 124.755, 449.17 subdivision 8, is amended to read: 449.18 Subd. 8. [MANDATORY PLAN; TECHNICAL ASSISTANCE.] If the 449.19 state makes payments on behalf of a district under this section 449.20 or the district defaults in the payment of principal or interest 449.21 on an outstanding debt obligation, itshallmust submit a plan 449.22 to the commissionerof children, families, and learningfor 449.23 approval specifying the measures it intends to implement to 449.24 resolve the issues which led to its inability to make the 449.25 payment and to prevent further defaults. The departmentshall449.26 must provide technical assistance to theschooldistrict in 449.27 preparing its plan. If the commissioner determines that 449.28 aschooldistrict's plan is not adequate, the commissioner shall 449.29 notify theschooldistrict that the plan has been disapproved, 449.30 the reasons for the disapproval, and that the state shall not 449.31 make future payments under this section for debt obligations 449.32 issued after the date specified in that notice until its plan is 449.33 approved. The commissioner may also notify theschooldistrict 449.34 that until its plan is approved, other aids due the district 449.35 will be withheld after a date specified in the notice. 449.36 Sec. 94. Minnesota Statutes 1996, section 124.755, 450.1 subdivision 9, is amended to read: 450.2 Subd. 9. [STATE BOND RATING.] If the commissioner of 450.3 finance determines that the credit rating of the state would be 450.4 adversely affected thereby, the commissioner of finance shall 450.5 not issue warrants under subdivision 2 for the payment of 450.6 principal or interest on any debt obligations for which aschool450.7 district did not, prior to their issuance, obligate itself to be 450.8 bound by the provisions of this section. 450.9 Sec. 95. Minnesota Statutes 1996, section 124.82, 450.10 subdivision 1, is amended to read: 450.11 Subdivision 1. [CREATION OF A DOWN PAYMENT ACCOUNT.] A 450.12schooldistrict may create a down payment account as a separate 450.13 account in its construction fund. All proceeds from the down 450.14 payment levy must be deposited in the capital expenditure fund 450.15 and transferred to this account. Interest income attributable 450.16 to the down payment account must be credited to the account. 450.17 Sec. 96. Minnesota Statutes 1996, section 124.82, 450.18 subdivision 3, is amended to read: 450.19 Subd. 3. [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] A 450.20 district may levy the local tax rate approved by a majority of 450.21 the electors voting on the question to provide funds for a down 450.22 payment for an approved project. The election must take place 450.23 no more than five years before the estimated date of 450.24 commencement of the project. The referendum must be held on a 450.25 date set by theschoolboard. A referendum for a project not 450.26 receiving a positive review and comment by the commissioner 450.27 under section 121.15 must be approved by at least 60 percent of 450.28 the voters at the election. The referendum may be called by the 450.29 school board and may be held: 450.30 (1) separately, before an election for the issuance of 450.31 obligations for the project under chapter 475; or 450.32 (2) in conjunction with an election for the issuance of 450.33 obligations for the project under chapter 475; or 450.34 (3) notwithstanding section 475.59, as a conjunctive 450.35 question authorizing both the down payment levy and the issuance 450.36 of obligations for the project under chapter 475. Any 451.1 obligations authorized for a project may be issued within five 451.2 years of the date of the election. 451.3 The ballot must provide a general description of the 451.4 proposed project, state the estimated total cost of the project, 451.5 state whether the project has received a positive or negative 451.6 review and comment from the commissionerof children, families,451.7and learning, state the maximum amount of the down payment levy 451.8 as a percentage of net tax capacity, state the amount that will 451.9 be raised by that local tax rate in the first year it is to be 451.10 levied, and state the maximum number of years that the levy 451.11 authorization will apply. 451.12 The ballot must contain a textual portion with the 451.13 information required in this section and a question stating 451.14 substantially the following: 451.15 "Shall the down payment levy proposed by the board of 451.16 .......... School District No. .......... be approved?" 451.17 If approved, the amount provided by the approved local tax 451.18 rate applied to the net tax capacity for the year preceding the 451.19 year the levy is certified may be certified for the number of 451.20 years approved. 451.21 In the event a conjunctive question proposes to authorize 451.22 both the down payment levy and the issuance of obligations for 451.23 the project, appropriate language authorizing the issuance of 451.24 obligations must also be included in the question. 451.25 The district must notify the commissionerof children,451.26families, and learningof the results of the referendum. 451.27 Sec. 97. Minnesota Statutes 1997 Supplement, section 451.28 124.83, subdivision 1, is amended to read: 451.29 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 451.30 health and safety revenue for any fiscal year a district must 451.31 submit to the commissionerof children, families, and learning451.32 an application for aid and levy by the date determined by the 451.33 commissioner. The application may be for hazardous substance 451.34 removal, fire and life safety code repairs, labor and industry 451.35 regulated facility and equipment violations, and health, safety, 451.36 and environmental management, including indoor air quality 452.1 management. The application must include a health and safety 452.2 program adopted by the school district board. The program must 452.3 include the estimated cost, per building, of the program by 452.4 fiscal year. 452.5 Sec. 98. Minnesota Statutes 1996, section 124.83, 452.6 subdivision 8, is amended to read: 452.7 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 452.8 COST.] (a) A district's cost for health, safety, and 452.9 environmental management is limited to the lesser of: 452.10 (1) actual cost to implement their plan; or 452.11 (2) an amount determined by the commissioner, based on 452.12 enrollment, building age, and size. 452.13 (b)Effective July 1, 1993,The departmentof children,452.14families, and learningmay contract with regional service 452.15 organizations, private contractors, Minnesota safety council, or 452.16 state agencies to provide management assistance to school 452.17 districts for health and safety capital projects. Management 452.18 assistance is the development of written programs for the 452.19 identification, recognition and control of hazards, and 452.20 prioritization and scheduling of district health and safety 452.21 capital projects. 452.22 (c) Notwithstanding paragraph (b), the department may 452.23 approve revenue, up to the limit defined in paragraph (a) for 452.24 districts having an approved health, safety, and environmental 452.25 management plan that uses district staff to accomplish 452.26 coordination and provided services. 452.27 Sec. 99. Minnesota Statutes 1996, section 124.84, 452.28 subdivision 1, is amended to read: 452.29 Subdivision 1. [REMOVAL OF ARCHITECTURAL BARRIERS.] If a 452.30schoolboard has insufficient money in its capital expenditure 452.31 fund to remove architectural barriers from a building it owns in 452.32 order to allow a pupil to attend a school in the pupil's 452.33 attendance area or to meet the needs of an employee with a 452.34 disability, a district may submit an application to the 452.35 commissionerof children, families, and learningcontaining at 452.36 least the following: 453.1 (1) program modifications that the board considered, such 453.2 as relocating classrooms, providing an accessible unisex 453.3 bathroom, providing alternative library resources, or using 453.4 special equipment, such as bookcarts, and the reasons the 453.5 modifications were not feasible; 453.6 (2) a description of the proposed building modifications 453.7 and the cost of the modifications; and 453.8 (3) the age and market value of the building. 453.9 Individuals developing an application for aschooldistrict 453.10 shall complete a workshop, developed jointly by the commissioner 453.11of children, families, and learningand the council on 453.12 disability, about access criteria. 453.13 In consultation with the council on disability, the 453.14 commissioner shall develop criteria to determine the 453.15 cost-effectiveness of removing barriers in older buildings. 453.16 The commissioner shall approve or disapprove an application 453.17 within 60 days of receiving it. 453.18 Sec. 100. Minnesota Statutes 1996, section 124.84, 453.19 subdivision 2, is amended to read: 453.20 Subd. 2. [FIRE SAFETY MODIFICATIONS.] If aschooldistrict 453.21 has insufficient money in its capital expenditure fund to make 453.22 modifications to a school building required by a fire inspection 453.23 conducted according to section 121.1502, the district may submit 453.24 an application to the commissionerof children, families, and453.25learningcontaining information required by the commissioner. 453.26 The commissioner shall approve or disapprove of the application 453.27 according to criteria established by the commissioner. The 453.28 criteria shall take into consideration the cost-effectiveness of 453.29 making modifications to older buildings. 453.30 Sec. 101. Minnesota Statutes 1996, section 124.85, 453.31 subdivision 2, is amended to read: 453.32 Subd. 2. [ENERGY EFFICIENCY CONTRACT.] (a) Notwithstanding 453.33 any law to the contrary, a school district may enter into a 453.34 guaranteed energy savings contract with a qualified provider to 453.35 significantly reduce energy or operating costs. 453.36 (b) Before entering into a contract under this subdivision, 454.1 the board shall comply with clauses (1) to (5). 454.2 (1) The boardshallmust seek proposals from multiple 454.3 qualified providers by publishing notice of the proposed 454.4 guaranteed energy savings contract in the board's official 454.5 newspaper and in other publications if the board determines that 454.6 additional publication is necessary to notify multiple qualified 454.7 providers. 454.8 (2) The school boardshallmust select the qualified 454.9 provider that best meets the needs of the board. Theschool454.10 boardshallmust provide public notice of the meeting at which 454.11 it will select the qualified provider. 454.12 (3) The contract between the board and the qualified 454.13 provider must describe the methods that will be used to 454.14 calculate the costs of the contract and the operational and 454.15 energy savings attributable to the contract. 454.16 (4) The qualified provider shall issue a report to the 454.17 board giving a description of all costs of installations, 454.18 modifications, or remodeling, including costs of design, 454.19 engineering, installation, maintenance, repairs, or debt 454.20 service, and giving detailed calculations of the amounts by 454.21 which energy or operating costs will be reduced and the 454.22 projected payback schedule in years. 454.23 (5) The boardshallmust provide published notice of the 454.24 meeting in which it proposes to award the contract, the names of 454.25 the parties to the proposed contract, and the contract's purpose. 454.26 Sec. 102. Minnesota Statutes 1996, section 124.85, 454.27 subdivision 2a, is amended to read: 454.28 Subd. 2a. [EVALUATION BY COMMISSIONER.] Upon request of 454.29 theschoolboard, the commissioner of public service shall 454.30 review the report required in subdivision 2 and provide an 454.31 evaluation to the board on the proposed contract within 15 454.32 working days of receiving the report. In evaluating the 454.33 proposed contract, the commissioner shall determine whether the 454.34 detailed calculations of the costs and of the energy and 454.35 operating savings are accurate and reasonable. The commissioner 454.36 may request additional information about a proposed contract as 455.1 the commissioner deems necessary. If the commissioner requests 455.2 additional information, the commissioner shall not be required 455.3 to submit an evaluation to the board within fewer than ten 455.4 working days of receiving the requested information. 455.5 Sec. 103. Minnesota Statutes 1996, section 124.85, 455.6 subdivision 2b, is amended to read: 455.7 Subd. 2b. [REVIEW OF SAVINGS UNDER CONTRACT.] Upon request 455.8 of theschoolboard, the commissioner shall conduct a review of 455.9 the energy and operating cost savings realized under a 455.10 guaranteed energy savings contract every three years during the 455.11 period a contract is in effect. The commissioner shall compare 455.12 the savings realized under the contract during the period under 455.13 review with the calculations of savings included in the report 455.14 required under subdivision 2 and provide an evaluation to the 455.15 board concerning the performance of the system and the accuracy 455.16 and reasonableness of the claimed energy and operating cost 455.17 savings. 455.18 Sec. 104. Minnesota Statutes 1996, section 124.85, 455.19 subdivision 2c, is amended to read: 455.20 Subd. 2c. [PAYMENT OF REVIEW EXPENSES.] The commissioner 455.21 of public service may charge aschooldistrict requesting 455.22 services under subdivisions 2a and 2b actual costs incurred by 455.23 the department of public service while conducting the review, or 455.24 one-half percent of the total identified project cost, whichever 455.25 is less. Before conducting the review, the commissioner shall 455.26 notify aschooldistrict requesting review services that 455.27 expenses will be charged to theschooldistrict. The 455.28 commissioner shall bill theschooldistrict upon completion of 455.29 the contract review. Money collected by the commissioner under 455.30 this subdivision must be deposited in the general fund. A 455.31 district may include the cost of a review by the commissioner 455.32 under subdivision 2a in a contract made pursuant to this section. 455.33 Sec. 105. Minnesota Statutes 1996, section 124.85, 455.34 subdivision 5, is amended to read: 455.35 Subd. 5. [INSTALLATION CONTRACTS.] Aschooldistrict may 455.36 enter into an installment payment contract for the purchase and 456.1 installation of energy conservation measures. The contract must 456.2 provide for payments of not less than 1/15 of the price to be 456.3 paid within two years from the date of the first operation, and 456.4 the remaining costs to be paid monthly, not to exceed a 15-year 456.5 term from the date of the first operation. 456.6 Sec. 106. Minnesota Statutes 1996, section 124.85, 456.7 subdivision 6, is amended to read: 456.8 Subd. 6. [CONTRACT CONTINUANCE.] Guaranteed energy savings 456.9 contracts may extend beyond the fiscal year in which they become 456.10 effective. Theschooldistrictshallmust include in its annual 456.11 appropriations measure for each later fiscal year any amounts 456.12 payable under guaranteed energy savings contracts during the 456.13 year. Failure of a board to make such an appropriation does not 456.14 affect the validity of the guaranteed energy savings contract or 456.15 theschooldistrict's obligations under the contracts. 456.16 Sec. 107. Minnesota Statutes 1996, section 124.85, 456.17 subdivision 7, is amended to read: 456.18 Subd. 7. [PUBLIC INFORMATION.] A guaranteed energy savings 456.19 contract must provide that all work plans and other information 456.20 prepared by the qualified provider in relation to the project, 456.21 including a detailed description of the project, are public data 456.22 after the contract is entered into, except. Information defined 456.23 as trade secret information under section 13.37, subdivision 1, 456.24 shall remain nonpublic data. 456.25 Sec. 108. Minnesota Statutes 1996, section 124.91, 456.26 subdivision 4, is amended to read: 456.27 Subd. 4. [COOPERATING DISTRICTS.] A district that has an 456.28 agreement according to section 122.535 or 122.541 may levy for 456.29 the repair costs, as approved by the departmentof children,456.30families, and learning,of a building located in another 456.31 district that is a party to the agreement. 456.32 Sec. 109. Minnesota Statutes 1997 Supplement, section 456.33 124.91, subdivision 5, is amended to read: 456.34 Subd. 5. [INTERACTIVE TELEVISION.] (a) Aschooldistrict 456.35 with its central administrative office located within economic 456.36 development region one, two, three, four, five, six, seven, 457.1 eight, nine, and ten may apply to the commissionerof children,457.2families, and learningfor ITV revenue up to the greater of .5 457.3 percent of the adjusted net tax capacity of the district or 457.4 $25,000. Eligible interactive television expenditures include 457.5 the construction, maintenance, and lease costs of an interactive 457.6 television system for instructional purposes. An eligible 457.7 school district that has completed the construction of its 457.8 interactive television system may also purchase computer 457.9 hardware and software used primarily for instructional purposes 457.10 and access to the Internet provided that its total expenditures 457.11 for interactive television maintenance and lease costs and for 457.12 computer hardware and software under this subdivision do not 457.13 exceed its interactive television revenue for fiscal year 1998. 457.14 The approval by the commissionerof children, families, and457.15learningand the application procedures set forth in subdivision 457.16 1 shall apply to the revenue in this subdivision. In granting 457.17 the approval, the commissionermustshall consider whether the 457.18 district is maximizing efficiency through peak use and off-peak 457.19 use pricing structures. 457.20 (b) To obtain ITV revenue, a district may levy an amount 457.21 not to exceed the district's ITV revenue times the lesser of one 457.22 or the ratio of: 457.23 (1) the quotient derived by dividing the adjusted net tax 457.24 capacity of the district for the year before the year the levy 457.25 is certified by the actual pupil units in the district for the 457.26 year to which the levy is attributable; to 457.27 (2) 100 percent of the equalizing factor as defined in 457.28 section 124A.02, subdivision 8, for the year to which the levy 457.29 is attributable. 457.30 (c) A district's ITV aid is the difference between its ITV 457.31 revenue and the ITV levy. 457.32 (d) The revenue in the first year after reorganization for 457.33 a district that has reorganized under section 122.22, 122.23, or 457.34 122.241 to 122.247 shall be the greater of: 457.35 (1) the revenue computed for the reorganized district under 457.36 paragraph (a), or 458.1 (2)(i) for two districts that reorganized, 75 percent of 458.2 the revenue computed as if the districts involved in the 458.3 reorganization were separate, or 458.4 (ii) for three or more districts that reorganized, 50 458.5 percent of the revenue computed as if the districts involved in 458.6 the reorganization were separate. 458.7 (e) The revenue in paragraph (d) is increased by the 458.8 difference between the initial revenue and ITV lease costs for 458.9 leases that had been entered into by the preexisting districts 458.10 on the effective date of the consolidation or combination and 458.11 with a term not exceeding ten years. This increased revenue is 458.12 only available for the remaining term of the lease. However, in 458.13 no case shall the revenue exceed the amount available had the 458.14 preexisting districts received revenue separately. 458.15 (f) Effective for fiscal year 2000, the revenue under this 458.16 section shall be 75 percent of the amount determined in 458.17 paragraph (a); for fiscal year 2001, 50 percent of the amount in 458.18 paragraph (a); and for fiscal year 2002, 25 percent of the 458.19 amount in paragraph (a). 458.20 (g) This section expires effective for revenue for fiscal 458.21 year 2003, or when leases in existence on the effective date of 458.22 Laws 1997, First Special Session chapter 4, expire. 458.23 Sec. 110. Minnesota Statutes 1996, section 124.91, 458.24 subdivision 6, is amended to read: 458.25 Subd. 6. [ENERGY CONSERVATION.] Theschooldistrict may 458.26 annually levy, without the approval of a majority of the voters 458.27 in the district, an amount sufficient to repay the annual 458.28 principal and interest of the loan made pursuant to sections 458.29 216C.37 and 298.292 to 298.298. 458.30 Sec. 111. Minnesota Statutes 1997 Supplement, section 458.31 124.912, subdivision 1, is amended to read: 458.32 Subdivision 1. [STATUTORY OBLIGATIONS.] Aschooldistrict 458.33 may levy: 458.34 (1) the amount authorized for liabilities of dissolved 458.35 districts pursuant to section 122.45; 458.36 (2) the amounts necessary to pay the district's obligations 459.1 under section 268.052, subdivision 1, and the amounts necessary 459.2 to pay for job placement services offered to employees who may 459.3 become eligible for benefits pursuant to section 268.08 for the 459.4 fiscal year the levy is certified; 459.5 (3) the amounts necessary to pay the district's obligations 459.6 under section 127.05; 459.7 (4) the amounts authorized by section 122.531; 459.8 (5) the amounts necessary to pay the district's obligations 459.9 under section 122.533; and 459.10 (6) for severance pay required by sections 120.08, 459.11 subdivision 3, and 122.535, subdivision 6. 459.12 Sec. 112. Minnesota Statutes 1997 Supplement, section 459.13 124.912, subdivision 6, is amended to read: 459.14 Subd. 6. [CRIME RELATED COSTS.] For taxes levied in 1991 459.15 and subsequent years, payable in 1992 and subsequent years, each 459.16schooldistrict may make a levy on all taxable property located 459.17 within theschooldistrict for the purposes specified in this 459.18 subdivision. The maximum amount which may be levied for all 459.19 costs under this subdivision shall be equal to $1.50 multiplied 459.20 by the population of the school district. For purposes of this 459.21 subdivision, "population" of the school district means the same 459.22 as contained in section 275.14. The proceeds of the levy must 459.23 be used for reimbursing the cities and counties who contract 459.24 with theschooldistrict for the following purposes: (1) to pay 459.25 the costs incurred for the salaries, benefits, and 459.26 transportation costs of peace officers and sheriffs for liaison 459.27 services in the district's middle and secondary schools; (2) to 459.28 pay the costs for a drug abuse prevention program as defined in 459.29 Minnesota Statutes 1991 Supplement, section 609.101, subdivision 459.30 3, paragraph (f), in the elementary schools; or (3) to pay the 459.31 costs for a gang resistance education training curriculum in the 459.32 middle schools. Theschooldistrict must initially attempt to 459.33 contract for these services with the police department of each 459.34 city or the sheriff's department of the county within theschool459.35 district containing the school receiving the services. If a 459.36 local police department or a county sheriff's department does 460.1 not wish to provide the necessary services, the district may 460.2 contract for these services with any other police or sheriff's 460.3 department located entirely or partially within the school 460.4 district's boundaries. The levy authorized under this 460.5 subdivision is not included in determining the school district's 460.6 levy limitations. 460.7 Sec. 113. Minnesota Statutes 1996, section 124.912, 460.8 subdivision 7, is amended to read: 460.9 Subd. 7. [ICE ARENA LEVY.] (a) Each year, an independent 460.10 school district operating and maintaining an ice arena, may levy 460.11 for the net operational costs of the ice arena. The levy may 460.12 not exceed the net actual costs of operation of the arena for 460.13 the previous year. Net actual costs are defined as operating 460.14 costs less any operating revenues. 460.15 (b) Anyschooldistrict operating and maintaining an ice 460.16 arena must demonstrate to the satisfaction of the office of 460.17 monitoring in the departmentof children, families, and learning460.18 that the district will offer equal sports opportunities for male 460.19 and female students to use its ice arena, particularly in areas 460.20 of access to prime practice time, team support, and providing 460.21 junior varsity and younger level teams for girls' ice sports and 460.22 ice sports offerings. 460.23 Sec. 114. Minnesota Statutes 1996, section 124.912, 460.24 subdivision 9, is amended to read: 460.25 Subd. 9. [ABATEMENT LEVY.] (a) Each year, a school 460.26 district may levy an amount to replace the net revenue lost to 460.27 abatements that have occurred under chapter 278, section 270.07, 460.28 375.192, or otherwise. The maximum abatement levy is the sum of: 460.29 (1) the amount of the net revenue loss determined under 460.30 section 124.214, subdivision 2, that is not paid in state aid 460.31 including any aid amounts not paid due to proration; 460.32 (2) the difference of (i) the amount of any abatements that 460.33 have been reported by the county auditor for the first six 460.34 months of the calendar year during which the abatement levy is 460.35 certified that the district chooses to levy, (ii) less any 460.36 amount actually levied under this clause that was certified in 461.1 the previous calendar year for the first six months of the 461.2 previous calendar year; and 461.3 (3) an amount equal to any interest paid on abatement 461.4 refunds. 461.5 (b) A district may spread this levy over a period not to 461.6 exceed three years. 461.7 By July 15, the county auditor shall separately report the 461.8 abatements that have occurred during the first six calendar 461.9 months of that year to the commissionerof children, families,461.10and learningand eachschooldistrict located within the county. 461.11 Sec. 115. Minnesota Statutes 1996, section 124.914, is 461.12 amended to read: 461.13 124.914 [OPERATING DEBT LEVIES.] 461.14 Subdivision 1. [1977 STATUTORY OPERATING DEBT.](1)(a) In 461.15 each year in which so required by this subdivision, a district 461.16shallmust make an additional levy to eliminate its statutory 461.17 operating debt, determined as of June 30, 1977, and certified 461.18 and adjusted by the commissioner. This levy shall not be made 461.19 in more than 30 successive years and each year before it is 461.20 made, it must be approved by the commissioner and the approval 461.21 shall specify its amount. This levy shall be an amount which is 461.22 equal to the amount raised by a levy of a net tax rate of 1.66 461.23 percent times the adjusted net tax capacity of the district for 461.24 the preceding year for taxes payable in 1991 and thereafter; 461.25 provided that in the last year in which the district is required 461.26 to make this levy, itshallmust levy an amount not to exceed 461.27 the amount raised by a levy of a net tax rate of 1.66 percent 461.28 times the adjusted net tax capacity of the district for the 461.29 preceding year for taxes payable in 1991 and thereafter. When 461.30 the sum of the cumulative levies made pursuant to this 461.31 subdivision and transfers made according to section 121.912, 461.32 subdivision 4, equals an amount equal to the statutory operating 461.33 debt of the district, the levy shall be discontinued. 461.34(2)(b) The districtshallmust establish a special account 461.35 in the general fund which shall be designated "appropriated fund 461.36 balance reserve account for purposes of reducing statutory 462.1 operating debt" on its books and records. This account shall 462.2 reflect the levy authorized pursuant to this subdivision. The 462.3 proceeds of this levyshallmust be used only for cash flow 462.4 requirements andshallmust not be used to supplement district 462.5 revenues or income for the purposes of increasing the district's 462.6 expenditures or budgets. 462.7(3)(c) Any district which is required to levy pursuant to 462.8 this subdivisionshallmust certify the maximum levy allowable 462.9 under section 124A.23, subdivision 2, in that same year. 462.10(4)(d) Each district shall make permanent fund balance 462.11 transfers so that the total statutory operating debt of the 462.12 district is reflected in the general fund as of June 30, 1977. 462.13 Subd. 2. [1983 OPERATING DEBT.] (1) Each year, a district 462.14 may make an additional levy to eliminate a deficit in the net 462.15 unappropriated operating funds of the district, determined as of 462.16 June 30, 1983, and certified and adjusted by the commissioner. 462.17 This levy may in each year be an amount not to exceed the amount 462.18 raised by a levy of a net tax rate of 1.85 percent times the 462.19 adjusted net tax capacity for taxes payable in 1991 and 462.20 thereafter of the district for the preceding year as determined 462.21 by the commissioner. However, the total amount of this levy for 462.22 all years it is madeshallmust not exceed the lesser of (a) the 462.23 amount of the deficit in the net unappropriated operating funds 462.24 of the district as of June 30, 1983, or (b) the amount of the 462.25 aid reduction, according to Laws 1981, Third Special Session 462.26 chapter 2, article 2, section 2, but excluding clauses (l), (m), 462.27 (n), (o), and (p), and Laws 1982, Third Special Session chapter 462.28 1, article 3, section 6, to the district in fiscal year 1983. 462.29 When the cumulative levies made pursuant to this subdivision 462.30 equal the total amount permitted by this subdivision, the levy 462.31shallmust be discontinued. 462.32 (2) The proceeds of this levyshallmust be used only for 462.33 cash flow requirements andshallmust not be used to supplement 462.34 district revenues or income for the purposes of increasing the 462.35 district's expenditures or budgets. 462.36 (3)AnyA district that levies pursuant to this subdivision 463.1shallmust certify the maximum levy allowable under section 463.2 124A.23, subdivisions 2 and 2a, in that same year. 463.3 Subd. 3. [1985 OPERATING DEBT.] (1) Each year, a district 463.4 may levy to eliminate a deficit in the net unappropriated 463.5 balance in the general fund of the district, determined as of 463.6 June 30, 1985, and certified and adjusted by the commissioner. 463.7 Each year this levy may be an amount not to exceed the amount 463.8 raised by a levy of a net tax rate of 1.85 percent times the 463.9 adjusted net tax capacity for taxes payable in 1991 and 463.10 thereafter of the district for the preceding year. However, the 463.11 total amount of this levy for all years it is madeshallmust 463.12 not exceed the amount of the deficit in the net unappropriated 463.13 balance in the general fund of the district as of June 30, 463.14 1985. When the cumulative levies made pursuant to this 463.15 subdivision equal the total amount permitted by this 463.16 subdivision, the levy shall be discontinued. 463.17 (2) A district, if eligible, may levy under this 463.18 subdivision or subdivision 2 but not both. 463.19 (3) The proceeds of this levyshallmust be used only for 463.20 cash flow requirements andshallmust not be used to supplement 463.21 district revenues or income for the purposes of increasing the 463.22 district's expenditures or budgets. 463.23 (4)AnyA district that levies pursuant to this subdivision 463.24shallmust certify the maximum levy allowable under section 463.25 124A.23, subdivision 2, in that same year. 463.26 Subd. 4. [1992 OPERATING DEBT.] (a) For taxes payable for 463.27 calendar year 2003 and earlier, a district that has filed a plan 463.28 pursuant to section 121.917, subdivision 4, may levy, with the 463.29 approval of the commissioner, to eliminate a deficit in the net 463.30 unappropriated balance in the operating funds of the district, 463.31 determined as of June 30, 1992, and certified and adjusted by 463.32 the commissioner. Each year this levy may be an amount not to 463.33 exceed the lesser of: 463.34 (1) an amount raised by a levy of a net tax rate of one 463.35 percent times the adjusted net tax capacity; or 463.36 (2) $100,000. 464.1 This amountshallmust be reduced by referendum revenue 464.2 authorized under section 124A.03 pursuant to the plan filed 464.3 under section 121.917. However, the total amount of this levy 464.4 for all years it is madeshallmust not exceed the amount of the 464.5 deficit in the net unappropriated balance in the operating funds 464.6 of the district as of June 30, 1992. When the cumulative levies 464.7 made pursuant to this subdivision equal the total amount 464.8 permitted by this subdivision, the levyshallmust be 464.9 discontinued. 464.10 (b) A district, if eligible, may levy under this 464.11 subdivision or subdivision 2 or 3, or under section 122.531, 464.12 subdivision 4a, or Laws 1992, chapter 499, article 7, sections 464.13 16 or 17, but not under more than one. 464.14 (c) The proceeds of this levyshallmust be used only for 464.15 cash flow requirements andshallmust not be used to supplement 464.16 district revenues or income for the purposes of increasing the 464.17 district's expenditures or budgets. 464.18 (d) Any district that levies pursuant to this subdivision 464.19shallmust certify the maximum levy allowable under section 464.20 124A.23, subdivision 2, in that same year. 464.21 Sec. 116. Minnesota Statutes 1996, section 124.916, as 464.22 amended by Laws 1997, First Special Session chapter 4, article 464.23 1, sections 29, 30, and 31, is amended to read: 464.24 124.916 [BENEFITS LEVIES.] 464.25 Subdivision 1. [HEALTH INSURANCE.] (a) Aschooldistrict 464.26 may levy the amount necessary to make employer contributions for 464.27 insurance for retired employees under this subdivision. 464.28 (b) The school board of a joint vocational technical 464.29 district formed under sections 136C.60 to 136C.69 and the school 464.30 board of a school district may provide employer-paid hospital, 464.31 medical, and dental benefits to a person who: 464.32 (1) is eligible for employer-paid insurance under 464.33 collective bargaining agreements or personnel plans in effect on 464.34 June 30, 1992; 464.35 (2) has at least 25 years of service credit in the public 464.36 pension plan of which the person is a member on the day before 465.1 retirement or, in the case of a teacher, has a total of at least 465.2 25 years of service credit in the teachers retirement 465.3 association, a first-class city teacher retirement fund, or any 465.4 combination of these; 465.5 (3) upon retirement is immediately eligible for a 465.6 retirement annuity; 465.7 (4) is at least 55 and not yet 65 years of age; and 465.8 (5) retires on or after May 15, 1992, and before July 21, 465.9 1992. 465.10 A school board paying insurance under this subdivision may 465.11 not exclude any eligible employees. 465.12 (c) An employee who is eligible both for the health 465.13 insurance benefit under this subdivision and for an early 465.14 retirement incentive under a collective bargaining agreement or 465.15 personnel plan established by the employer must select either 465.16 the early retirement incentive provided under the collective 465.17 bargaining agreement personnel plan or the incentive provided 465.18 under this subdivision, but may not receive both. For purposes 465.19 of this subdivision, a person retires when the person terminates 465.20 active employment and applies for retirement benefits. The 465.21 retired employee is eligible for single and dependent coverages 465.22 and employer payments to which the person was entitled 465.23 immediately before retirement, subject to any changes in 465.24 coverage and employer and employee payments through collective 465.25 bargaining or personnel plans, for employees in positions 465.26 equivalent to the position from which the employee retired. The 465.27 retired employee is not eligible for employer-paid life 465.28 insurance. Eligibility ceases when the retired employee attains 465.29 the age of 65, or when the employee chooses not to receive the 465.30 retirement benefits for which the employee has applied, or when 465.31 the employee is eligible for employer-paid health insurance from 465.32 a new employer. Coverages must be coordinated with relevant 465.33 health insurance benefits provided through the federally 465.34 sponsored Medicare program. 465.35 (d) Unilateral implementation of this section by a public 465.36 employer is not an unfair labor practice for purposes of chapter 466.1 179A. The authority provided in this subdivision for an 466.2 employer to pay health insurance costs for certain retired 466.3 employees is not subject to the limits in section 179A.20, 466.4 subdivision 2a. 466.5 (e) If a school district levies according to this 466.6 subdivision, it may not also levy according to section 122.531, 466.7 subdivision 9, for eligible employees. 466.8 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 466.9 payable in 1996, 1997, 1998, and 1999 only, aschooldistrict 466.10 may levy an amount up to the amount the district is required by 466.11 the collective bargaining agreement in effect on March 30, 1992, 466.12 to pay for health insurance or unreimbursed medical expenses for 466.13 licensed and nonlicensed employees who have terminated services 466.14 in the employing district and withdrawn from active teaching 466.15 service or other active service, as applicable, before July 1, 466.16 1992. The total amount of the levy each year may not exceed 466.17 $300,000. 466.18 Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the 466.19 excess levy authorized in 1976 any district within a city of the 466.20 first class which was authorized in 1975 to make a retirement 466.21 levy under Minnesota Statutes 1974, section 275.127 and chapter 466.22 422A may levy an amount per pupil unit which is equal to the 466.23 amount levied in 1975 payable 1976, under Minnesota Statutes 466.24 1974, section 275.127 and chapter 422A, divided by the number of 466.25 pupil units in the district in 1976-1977. 466.26 (2) In 1979 and each year thereafter, any district which 466.27 qualified in 1976 for an extra levy under paragraph (1) shall be 466.28 allowed to levy the same amount as levied for retirement in 1978 466.29 under this clause reduced each year by ten percent of the 466.30 difference between the amount levied for retirement in 1971 466.31 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 466.32 422.54 and the amount levied for retirement in 1975 under 466.33 Minnesota Statutes 1974, section 275.127 and chapter 422A. 466.34 (3) In 1991 and each year thereafter, a district to which 466.35 this subdivision applies may levy an additional amount required 466.36 for contributions to the Minneapolis employees retirement fund 467.1 as a result of the maximum dollar amount limitation on state 467.2 contributions to the fund imposed under section 422A.101, 467.3 subdivision 3. The additional levyshallmust not exceed the 467.4 most recent amount certified by the board of the Minneapolis 467.5 employees retirement fund as the district's share of the 467.6 contribution requirement in excess of the maximum state 467.7 contribution under section 422A.101, subdivision 3. 467.8 (4) For taxes payable in 1994 and thereafter, special 467.9 school district No. 1, Minneapolis, and independent school 467.10 district No. 625, St. Paul, may levy for the increase in the 467.11 employer retirement fund contributions, under Laws 1992, chapter 467.12 598, article 5, section 1. 467.13 (5) If the employer retirement fund contributions under 467.14 section 354A.12, subdivision 2a, are increased for fiscal year 467.15 1994 or later fiscal years, special school district No. 1, 467.16 Minneapolis, and independent school district No. 625, St. Paul, 467.17 may levy in payable 1994 or later an amount equal to the amount 467.18 derived by applying the net increase in the employer retirement 467.19 fund contribution rate of the respective teacher retirement fund 467.20 association between fiscal year 1993 and the fiscal year 467.21 beginning in the year after the levy is certified to the total 467.22 covered payroll of the applicable teacher retirement fund 467.23 association. If an applicable school district levies under this 467.24 paragraph, they may not levy under paragraph (4). 467.25 (6) In addition to the levy authorized under paragraph (5), 467.26 special school district No. 1, Minneapolis, may also levy 467.27 payable in 1997 or later an amount equal to the contributions 467.28 under section 423A.02, subdivision 3, and may also levy in 467.29 payable 1994 or later an amount equal to the state aid 467.30 contribution under section 354A.12, subdivision 3b. Independent 467.31 school district No. 625, St. Paul, may levy payable in 1997 or 467.32 later an amount equal to the supplemental contributions under 467.33 section 423A.02, subdivision 3. 467.34 Subd. 4. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 467.35 special school district No. 1, Minneapolis, may make an 467.36 additional levy not to exceed the amount raised by a net tax 468.1 rate of .10 percent times the adjusted net tax capacity for 468.2 taxes payable in 1991 and thereafter of the property in the 468.3 district for the preceding year. The proceeds may be used only 468.4 to subsidize health insurance costs for eligible teachers as 468.5 provided in this section. 468.6 "Eligible teacher" means a retired teacher who was a basic 468.7 member of the Minneapolis teachers retirement fund association, 468.8 who retired before May 1, 1974, or who had 20 or more years of 468.9 basic member service in the Minneapolis teacher retirement fund 468.10 association and retired before June 30, 1983, and who is not 468.11 eligible to receive the hospital insurance benefits of the 468.12 federal Medicare program of the Social Security Act without 468.13 payment of a monthly premium. The districtshallmust notify 468.14 eligible teachers that a subsidy is available. To obtain a 468.15 subsidy, an eligible teacher must submit to the school district 468.16 a copy of receipts for health insurance premiums paid. The 468.17schooldistrictshallmust disburse the health insurance premium 468.18 subsidy to each eligible teacher according to a schedule 468.19 determined by the district, but at least annually. An eligible 468.20 teacher may receive a subsidy up to an amount equal to the 468.21 lesser of 90 percent of the cost of the eligible teacher's 468.22 health insurance or up to 90 percent of the cost of the number 468.23 two qualified plan of health coverage for individual policies 468.24 made available by the Minnesota comprehensive health association 468.25 under chapter 62E. 468.26 If funds remaining from the previous year's health 468.27 insurance subsidy levy, minus the previous year's required 468.28 subsidy amount, are sufficient to pay the estimated current year 468.29 subsidy, the levy must be discontinued until the remaining funds 468.30 are estimated by the school board to be insufficient to pay the 468.31 subsidy. 468.32 This subdivision does not extend benefits to teachers who 468.33 retire after June 30, 1983, and does not create a contractual 468.34 right or claim for altering the benefits in this subdivision. 468.35 This subdivision does not restrict theschooldistrict's right 468.36 to modify or terminate coverage under this subdivision. 469.1 Sec. 117. Minnesota Statutes 1997 Supplement, section 469.2 124.918, subdivision 1, is amended to read: 469.3 Subdivision 1. [CERTIFY LEVY LIMITS.] (a) By September 8, 469.4 the commissioner shall notify the school districts of their levy 469.5 limits. The commissioner shall certify to the county auditors 469.6 the levy limits for allschooldistricts headquartered in the 469.7 respective counties together with adjustments for errors in 469.8 levies not penalized pursuant to section 124.918, subdivision 3, 469.9 as well as adjustments to final pupil unit counts. Aschool469.10 district may require the commissioner to review the 469.11 certification and to present evidence in support of modification 469.12 of the certification. 469.13 The county auditor shall reduce levies for any excess of 469.14 levies over levy limitations pursuant to section 275.16. Such 469.15 reduction in excess levies may, at the discretion of the school 469.16 district, be spread over two calendar years. 469.17 (b) As part of the commissioner's certification under 469.18 paragraph (a), the commissioner shall certify the amount by 469.19 which a district's levy for its general fund was reduced under 469.20 subdivision 8. 469.21 Sec. 118. Minnesota Statutes 1996, section 124.918, 469.22 subdivision 2, is amended to read: 469.23 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 469.24 each year each districtshallmust notify the commissionerof469.25children, families, and learningof the proposed levies in 469.26 compliance with the levy limitations of this chapter and 469.27 chapters 124A, 124B, and 136D. By January 15 of each year each 469.28 districtshallmust notify the commissionerof children,469.29families, and learningof the final levies certified. The 469.30 commissionerof children, families, and learningshall prescribe 469.31 the form of these notifications and may request any additional 469.32 information necessary to compute certified levy amounts. 469.33 Sec. 119. Minnesota Statutes 1996, section 124.918, 469.34 subdivision 3, is amended to read: 469.35 Subd. 3. [ADJUSTMENTS.] If anyschooldistrict levy is 469.36 found to be excessive as a result of a decision of the tax court 470.1 or a redetermination by the commissioner of revenue under 470.2 section 124.2131, subdivisions 2 to 11, or for any other reason, 470.3 the amount of the excess shall be deducted from the levy 470.4 certified in the next year for the same purpose; provided that. 470.5 If no levy is certified in the next year for the same purpose or 470.6 if the amount certified is less than the amount of the excess, 470.7 the excessshallmust be deducted from that levy and the levy 470.8 certified pursuant to section 124A.23, subdivision 2. If the 470.9 amount of any aid would have been increased in a prior year as a 470.10 result of a decision of the tax court or a redetermination by 470.11 the commissioner of revenue, the amount of the increase shall be 470.12 added to the amount of current aid for the same purposes. 470.13 Sec. 120. Minnesota Statutes 1997 Supplement, section 470.14 124.918, subdivision 6, is amended to read: 470.15 Subd. 6. [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 470.16 enacted in law changes the levy authority for a school district 470.17 or an intermediate school district for a fiscal year after the 470.18 levy for that fiscal year has been certified by the district 470.19 under section 275.07, the departmentof children, families, and470.20learning shallmust adjust the next levy certified by the 470.21 district by the amount of the change in levy authority for that 470.22 fiscal year resulting from the change. Notwithstanding section 470.23 121.904, the entire amount of the levy adjustment must be 470.24 recognized as revenue in the fiscal year the levy is certified, 470.25 if sufficient levy resources are available under generally 470.26 accepted accounting principles in the district fund where the 470.27 adjustment is to occur.SchoolDistricts that do not have 470.28 sufficient levy resources available in the fund where the 470.29 adjustment is to occurshallmust recognize in the fiscal year 470.30 the levy is certified an amount equal to the levy resources 470.31 available. The remaining adjustment amountshallmust be 470.32 recognized as revenue in the fiscal year after the levy is 470.33 certified. 470.34 Sec. 121. Minnesota Statutes 1996, section 124.918, 470.35 subdivision 7, is amended to read: 470.36 Subd. 7. [REPORTING.] For each tax settlement, the county 471.1 auditor shall report to each school district by fund, theschool471.2 district tax settlement revenue defined in section 121.904, 471.3 subdivision 4a, clause (a), and the amount levied pursuant to 471.4 section 124.914, subdivision 1, on the form specified in section 471.5 276.10. The county auditor shall send to theschooldistrict a 471.6 copy of the spread levy report specified in section 275.124. 471.7 Sec. 122. Minnesota Statutes 1997 Supplement, section 471.8 124.918, subdivision 8, is amended to read: 471.9 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 471.10 Reductions in levies pursuant to section 124.918, subdivision 1, 471.11 and section 273.138,shallmust be made prior to the reductions 471.12 in clause (2). 471.13 (2) Notwithstanding any other law to the contrary, 471.14 districts which received payments pursuant to sections 298.018; 471.15 298.23 to 298.28, except an amount distributed under section 471.16 298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 471.17 298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 471.18 upon severed mineral values, or recognized revenue pursuant to 471.19 section 477A.15;shallmust not include a portion of these aids 471.20 in their permissible levies pursuant to those sections, but 471.21 insteadshallmust reduce the permissible levies authorized by 471.22 this chapter and chapter 124A by the greater of the following: 471.23 (a) an amount equal to 50 percent of the total dollar 471.24 amount of the payments received pursuant to those sections or 471.25 revenue recognized pursuant to section 477A.15 in the previous 471.26 fiscal year; or 471.27 (b) an amount equal to the total dollar amount of the 471.28 payments received pursuant to those sections or revenue 471.29 recognized pursuant to section 477A.15 in the previous fiscal 471.30 year less the product of the same dollar amount of payments or 471.31 revenue times the ratio of the maximum levy allowed the district 471.32 under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 471.33 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 471.34 subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 471.35 subdivision 5a, to the total levy allowed the district under 471.36 this section and Minnesota Statutes 1986, sections 124A.03, 472.1 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 472.2 subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 472.3 5a, and 124A.20, subdivision 2, for levies certified in 1986. 472.4 (3) No reduction pursuant to this subdivision shall reduce 472.5 the levy made by the district pursuant to section 124A.23, to an 472.6 amount less than the amount raised by a levy of a net tax rate 472.7 of 6.82 percent times the adjusted net tax capacity for taxes 472.8 payable in 1990 and thereafter of that district for the 472.9 preceding year as determined by the commissioner. The amount of 472.10 any increased levy authorized by referendum pursuant to section 472.11 124A.03, subdivision 2, shall not be reduced pursuant to this 472.12 subdivision. The amount of any levy authorized by section 472.13 124.912, subdivision 1, to make payments for bonds issued and 472.14 for interest thereon, shall not be reduced pursuant to this 472.15 subdivision. 472.16 (4) Before computing the reduction pursuant to this 472.17 subdivision of the health and safety levy authorized by sections 472.18 124.83 and 124.91, subdivision 6, the commissioner shall 472.19 ascertain from each affected school district the amount it 472.20 proposes to levy under each section or subdivision. The 472.21 reduction shall be computed on the basis of the amount so 472.22 ascertained. 472.23 (5) Notwithstanding any law to the contrary, any amounts 472.24 received by districts in any fiscal year pursuant to sections 472.25 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 472.26 298.405; or any law imposing a tax on severed mineral values; 472.27 and not deducted from general education aid pursuant to section 472.28 124A.035, subdivision 5, clause (2), and not applied to reduce 472.29 levies pursuant to this subdivision shall be paid by the 472.30 district to the St. Louis county auditor in the following amount 472.31 by March 15 of each year, the amount required to be subtracted 472.32 from the previous fiscal year's general education aid pursuant 472.33 to section 124A.035, subdivision 5, which is in excess of the 472.34 general education aid earned for that fiscal year. The county 472.35 auditor shall deposit any amounts received pursuant to this 472.36 clause in the St. Louis county treasury for purposes of paying 473.1 the taconite homestead credit as provided in section 273.135. 473.2 Sec. 123. Minnesota Statutes 1996, section 124.95, 473.3 subdivision 1, is amended to read: 473.4 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 473.5 section, the eligible debt service revenue of a district is 473.6 defined as follows: 473.7 (1) the amount needed to produce between five and six 473.8 percent in excess of the amount needed to meet when due the 473.9 principal and interest payments on the obligations of the 473.10 district for eligible projects according to subdivision 2, 473.11 including the amounts necessary for repayment of energy loans 473.12 according to section 216C.37 or sections 298.292 to 298.298, 473.13 debt service loans and capital loans, lease purchase payments 473.14 under section 124.91, subdivisions 2 and 3, alternative 473.15 facilities levies under section 124.239, subdivision 5, minus 473.16 (2) the amount of debt service excess levy reduction for 473.17 that school year calculated according to the procedure 473.18 established by the commissioner. 473.19 (b) The obligations in this paragraph are excluded from 473.20 eligible debt service revenue: 473.21 (1) obligations under section 124.2445; 473.22 (2) the part of debt service principal and interest paid 473.23 from the taconite environmental protection fund or northeast 473.24 Minnesota economic protection trust; 473.25 (3) obligations issued under Laws 1991, chapter 265, 473.26 article 5, section 18, as amended by Laws 1992, chapter 499, 473.27 article 5, section 24; and 473.28 (4) obligations under section 124.2455. 473.29 (c) For purposes of this section, if a preexisting school 473.30 district reorganized under section 122.22, 122.23, or 122.241 to 473.31 122.248 is solely responsible for retirement of the preexisting 473.32 district's bonded indebtedness, capital loans or debt service 473.33 loans, debt service equalization aid must be computed separately 473.34 for each of the preexistingschooldistricts. 473.35 Sec. 124. Minnesota Statutes 1996, section 124.97, is 473.36 amended to read: 474.1 124.97 [DEBT SERVICE LEVY.] 474.2 Aschooldistrict may levy the amounts necessary to make 474.3 payments for bonds issued and for interest on them, including 474.4 the bonds and interest on them, issued as authorized by 474.5 Minnesota Statutes 1974, section 275.125, subdivision 3, clause 474.6 (7)(C); and the amounts necessary for repayment of debt service 474.7 loans and capital loans, minus the amount of debt service 474.8 equalization revenue of the district. 474.9 Sec. 125. Minnesota Statutes 1996, section 124A.02, 474.10 subdivision 1, is amended to read: 474.11 Subdivision 1. [APPLICABILITY.] For the purposes of this 474.12 chapter, the terms defined in section 120.02 have the same 474.13 meanings. For thepurposeof this chapterand chapter 124, the 474.14 following terms have themeaningmeanings given them. 474.15 Sec. 126. Minnesota Statutes 1996, section 124A.02, 474.16 subdivision 3a, is amended to read: 474.17 Subd. 3a. [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 474.18 capacity" means the net tax capacity of the taxable property of 474.19 theschooldistrict as adjusted by the commissioner of revenue 474.20 under section 124.2131. The adjusted net tax capacity for any 474.21 given calendar yearshallmust be used to compute levy 474.22 limitations for levies certified in the succeeding calendar year 474.23 and aid for the school year beginning in the second succeeding 474.24 calendar year. 474.25 Sec. 127. Minnesota Statutes 1996, section 124A.02, 474.26 subdivision 20, is amended to read: 474.27 Subd. 20. [SHARED TIME AVERAGE DAILY MEMBERSHIP.] The 474.28 average daily membership of a pupil enrolled on a shared time 474.29 basisshall equalequals the ratio of the total minutes for 474.30 which the pupil is enrolled and the minimum minutes required 474.31 during the year for a regularly enrolled public school pupil. 474.32 Sec. 128. Minnesota Statutes 1996, section 124A.02, 474.33 subdivision 21, is amended to read: 474.34 Subd. 21. [SHARED TIME AID.] Aid for shared time pupils 474.35shallmust equal the formula allowance times the full-time 474.36 equivalent actual pupil units for shared time pupils. Aid for 475.1 shared time pupilsshall beis in addition to any other aid to 475.2 which the district is otherwise entitled. Shared time average 475.3 daily membershipshallmay not be used in the computation of 475.4 pupil units under section 124.17, subdivision 1, for any purpose 475.5 other than the computation of shared time aid pursuant to 475.6 subdivisions 20 to 22 and section 124A.034, subdivisions 1 to 1b. 475.7 Sec. 129. Minnesota Statutes 1996, section 124A.02, 475.8 subdivision 22, is amended to read: 475.9 Subd. 22. [SHARED TIME PUPILS.] "Shared time pupils"are475.10defined asmeans those pupils who attend public school programs 475.11 for part of the regular school day and who otherwise fulfill the 475.12 requirements of section 120.101 by attendance at a nonpublic 475.13 school. 475.14 Sec. 130. Minnesota Statutes 1996, section 124A.02, 475.15 subdivision 23, is amended to read: 475.16 Subd. 23. [TRAINING AND EXPERIENCE INDEX.] "Training and 475.17 experience index" means a measure of a district's teacher 475.18 training and experience relative to the education and experience 475.19 of teachers in the state. The measureshallmust be determined 475.20 pursuant to section 124A.04. 475.21 Sec. 131. Minnesota Statutes 1996, section 124A.02, 475.22 subdivision 24, is amended to read: 475.23 Subd. 24. [AVERAGE SALARY FOR BEGINNING TEACHERS.] 475.24 "Average salary for beginning teachers" means the average salary 475.25 for all teachers in the state who are in their first year of 475.26 teaching and who have no additional credits or degrees above a 475.27 bachelor's degree. At least biennially, the departmentshall475.28 must recompute this average using complete new data. 475.29 Sec. 132. Minnesota Statutes 1996, section 124A.029, 475.30 subdivision 1, is amended to read: 475.31 Subdivision 1. [REVENUE CONVERSION.] Except as provided 475.32 under subdivision 4, the referendum authority under section 475.33 124A.03 and the levy authority under section 124.912, 475.34 subdivisions 2 and 3, of aschooldistrict must be converted by 475.35 the department according to this section. 475.36 Sec. 133. Minnesota Statutes 1996, section 124A.029, 476.1 subdivision 3, is amended to read: 476.2 Subd. 3. [RATE ADJUSTMENT.] The departmentshallmust 476.3 adjust aschooldistrict's referendum authority for a referendum 476.4 approved before July 1, 1991, excluding authority based on a 476.5 dollar amount, and the levy authority under section 124.912, 476.6 subdivisions 2 and 3, by multiplying the sum of the rates 476.7 authorized by a district under section 124A.03 and the rates in 476.8 section 124.912, subdivisions 2 and 3, by the ratio determined 476.9 under subdivision 2 for the assessment year for which the 476.10 revenue is attributable. The adjusted rates for assessment year 476.11 1993shallapply to later years for which the revenue is 476.12 authorized. 476.13 Sec. 134. Minnesota Statutes 1996, section 124A.029, 476.14 subdivision 4, is amended to read: 476.15 Subd. 4. [PER PUPIL REVENUE CONVERSION.] (a) The 476.16 departmentshallmust convert each district's referendum revenue 476.17 authority for fiscal year 2002 and later years to an allowance 476.18 per pupil unit as follows: the revenue allowance equals the 476.19 amount determined by dividing the district's maximum revenue 476.20 under section 124A.03, for fiscal year 2001 by the district's 476.21 2000-2001 actual pupil units. A district's maximum revenue for 476.22 all later years for which the revenue is authorized equals the 476.23 revenue allowance times the district's actual pupil units for 476.24 that year. 476.25 (b) The referendum allowance reductionshallmust be 476.26 applied first to the authority with the earliest expiration date. 476.27 Sec. 135. Minnesota Statutes 1996, section 124A.03, 476.28 subdivision 2, is amended to read: 476.29 Subd. 2. [REFERENDUM REVENUE.] (a) The revenue authorized 476.30 by section 124A.22, subdivision 1, may be increased in the 476.31 amount approved by the voters of the district at a referendum 476.32 called for the purpose. The referendum may be called by the 476.33schoolboard or shall be called by theschoolboard upon written 476.34 petition of qualified voters of the district. The referendum 476.35shallmust be conducted one or two calendar years before the 476.36 increased levy authority, if approved, first becomes payable. 477.1 Only one election to approve an increase may be held in a 477.2 calendar year. Unless the referendum is conducted by mail under 477.3 paragraph (g), the referendum must be held on the first Tuesday 477.4 after the first Monday in November. The ballotshallmust state 477.5 the maximum amount of the increased revenue per actual pupil 477.6 unit, the estimated referendum tax rate as a percentage of 477.7 market value in the first year it is to be levied, and that the 477.8 revenueshallmust be used to finance school operations. The 477.9 ballot may state a schedule, determined by the board, of 477.10 increased revenue per actual pupil units that differs from year 477.11 to year over the number of years for which the increased revenue 477.12 is authorized. If the ballot contains a schedule showing 477.13 different amounts, itshallmust also indicate the estimated 477.14 referendum tax rate as a percent of market value for the amount 477.15 specified for the first year and for the maximum amount 477.16 specified in the schedule. The ballot may state that existing 477.17 referendum levy authority is expiring. In this case, the ballot 477.18 may also compare the proposed levy authority to the existing 477.19 expiring levy authority, and express the proposed increase as 477.20 the amount, if any, over the expiring referendum levy 477.21 authority. The ballotshallmust designate the specific number 477.22 of years, not to exceed ten, for which the referendum 477.23 authorizationshall applyapplies. The notice required under 477.24 section 275.60 may be modified to read, in cases of renewing 477.25 existing levies: 477.26 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 477.27 FOR A PROPERTY TAX INCREASE." 477.28 The ballot may contain a textual portion with the 477.29 information required in this subdivision and a question stating 477.30 substantially the following: 477.31 "Shall the increase in the revenue proposed by (petition 477.32 to) the board of ........., School District No. .., be approved?" 477.33 If approved, an amount equal to the approved revenue per 477.34 actual pupil unit times the actual pupil units for the school 477.35 year beginning in the year after the levy is certified shall be 477.36 authorized for certification for the number of years approved, 478.1 if applicable, or until revoked or reduced by the voters of the 478.2 district at a subsequent referendum. 478.3 (b) Theschoolboardshallmust prepare and deliver by 478.4 first class mail at least 15 days but no more than 30 daysprior478.5tobefore the day of the referendum to each taxpayer a notice of 478.6 the referendum and the proposed revenue increase. Theschool478.7 board need not mail more than one notice to any taxpayer. For 478.8 the purpose of giving mailed notice under this subdivision, 478.9 ownersshallmust be those shown to be owners on the records of 478.10 the county auditor or, in any county where tax statements are 478.11 mailed by the county treasurer, on the records of the county 478.12 treasurer. Every property owner whose name does not appear on 478.13 the records of the county auditor or the county treasurershall478.14beis deemed to have waived this mailed notice unless the owner 478.15 has requested in writing that the county auditor or county 478.16 treasurer, as the case may be, include the name on the records 478.17 for this purpose. The notice must project the anticipated 478.18 amount of tax increase in annual dollars and annual percentage 478.19 for typical residential homesteads, agricultural homesteads, 478.20 apartments, and commercial-industrial property within the school 478.21 district. 478.22 The notice for a referendum may state that an existing 478.23 referendum levy is expiring and project the anticipated amount 478.24 of increase over the existing referendum levy in the first year, 478.25 if any, in annual dollars and annual percentage for typical 478.26 residential homesteads, agricultural homesteads, apartments, and 478.27 commercial-industrial property within theschooldistrict. 478.28 The notice must include the following statement: "Passage 478.29 of this referendum will result in an increase in your property 478.30 taxes." However, in cases of renewing existing levies, the 478.31 notice may include the following statement: "Passage of this 478.32 referendum may result in an increase in your property taxes." 478.33 (c) A referendum on the question of revoking or reducing 478.34 the increased revenue amount authorized pursuant to paragraph 478.35 (a) may be called by theschoolboard and shall be called by the 478.36schoolboard upon the written petition of qualified voters of 479.1 the district. A referendum to revoke or reduce the levy amount 479.2 must be based upon the dollar amount, local tax rate, or amount 479.3 per actual pupil unit, that was stated to be the basis for the 479.4 initial authorization. Revenue approved by the voters of the 479.5 district pursuant to paragraph (a) must be received at least 479.6 once before it is subject to a referendum on its revocation or 479.7 reduction for subsequent years. Only one revocation or 479.8 reduction referendum may be held to revoke or reduce referendum 479.9 revenue for any specific year and for years thereafter. 479.10 (d) A petition authorized by paragraph (a) or (c)shall be479.11 is effective if signed by a number of qualified voters in excess 479.12 of 15 percent of the registered voters of theschooldistrict on 479.13 the day the petition is filed with theschoolboard. A 479.14 referendum invoked by petitionshallmust be held on the date 479.15 specified in paragraph (a). 479.16 (e) The approval of 50 percent plus one of those voting on 479.17 the question is required to pass a referendum authorized by this 479.18 subdivision. 479.19 (f) At least 15 daysprior tobefore the day of the 479.20 referendum, the districtshallmust submit a copy of the notice 479.21 required under paragraph (b) to the commissionerof children,479.22families, and learningand to the county auditor of each county 479.23 in which theschooldistrict is located. Within 15 days after 479.24 the results of the referendum have been certified by theschool479.25 board, or in the case of a recount, the certification of the 479.26 results of the recount by the canvassing board, the 479.27 districtshallmust notify the commissionerof children,479.28families, and learningof the results of the referendum. 479.29 (g) Except for a referendum held under subdivision 2b, any 479.30 referendum under this section held on a day other than the first 479.31 Tuesday after the first Monday in November must be conducted by 479.32 mail in accordance with section 204B.46. Notwithstanding 479.33 paragraph (b) to the contrary, in the case of a referendum 479.34 conducted by mail under this paragraph, the notice required by 479.35 paragraph (b)shallmust be prepared and delivered by first 479.36 class mail at least 20 days before the referendum. 480.1 Sec. 136. Minnesota Statutes 1996, section 124A.03, 480.2 subdivision 2a, is amended to read: 480.3 Subd. 2a. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 480.4 Notwithstanding the provisions of subdivision 2, a school 480.5 referendum levy approved after November 1, 1992, for taxes 480.6 payable in 1993 and thereafter,shallmust be levied against the 480.7 referendum market value of all taxable property as defined in 480.8 section 124A.02, subdivision 3b. Any referendum levy amount 480.9 subject to the requirements of this subdivisionshallmust be 480.10 certified separately to the county auditor under section 275.07. 480.11 All other provisions of subdivision 2 that do not conflict 480.12 with this subdivisionshallapply to referendum levies under 480.13 this subdivision. 480.14 Sec. 137. Minnesota Statutes 1996, section 124A.03, 480.15 subdivision 3c, is amended to read: 480.16 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 480.17 year 1998 and later, a district's referendum allowance for 480.18 referendum authority under subdivision 1c is reduced as provided 480.19 in this subdivision. 480.20 (a) For referendum revenue authority approved before June 480.21 1, 1996, and effective for fiscal year 1997, the reduction 480.22 equals the amount of the reduction computed for fiscal year 1997 480.23 under subdivision 3b. 480.24 (b) For referendum revenue authority approved before June 480.25 1, 1996, and effective beginning in fiscal year 1998, the 480.26 reduction equals the amount of the reduction computed for fiscal 480.27 year 1998 under subdivision 3b. 480.28 (c) For referendum revenue authority approved after May 31, 480.29 1996, there is no reduction. 480.30 (d) For districts with more than one referendum authority, 480.31 the reductionshallmust be computed separately for each 480.32 authority. The reductionshallmust be applied first to 480.33 authorities levied against tax capacity, and then to authorities 480.34 levied against referendum market value. For districts with more 480.35 than one authority levied against net tax capacity or against 480.36 referendum market value, the referendum allowance reduction 481.1shallmust be applied first to the authority with the earliest 481.2 expiration date. 481.3 (e) For a newly reorganized district created after July 1, 481.4 1996, the referendum revenue reduction equals the lesser of the 481.5 amount calculated for the combined district, or the sum of the 481.6 amounts by which each of the reorganizing district's 481.7 supplemental revenue reduction exceeds its respective 481.8 supplemental revenue allowances calculated for the year 481.9 preceding the year of reorganization. 481.10 Sec. 138. Minnesota Statutes 1996, section 124A.0311, 481.11 subdivision 2, is amended to read: 481.12 Subd. 2. [CONVERSION TO MARKET VALUE.] (a)Prior to June481.131, 1997,By June 1 of each year, aschoolboard may, by 481.14 resolution of a majority of its board, convert any remaining 481.15 portion of its referendum authority under section 124A.03, 481.16 subdivision 2, that is authorized to be levied against net tax 481.17 capacity to referendum authority that is authorized to be levied 481.18 against the referendum market value of all taxable property 481.19 located within theschooldistrict. At the option of theschool481.20 board, any remaining portion of its referendum authority may be 481.21 converted in two or more parts at separate times. The 481.22 referendum authority may be converted from net tax capacity to 481.23 referendum market value according to a schedule adopted by 481.24 resolution of theschoolboard for yearsprior tobefore taxes 481.25 payable in 2001, provided that, for taxes payable in 2001 and 481.26 later, the full amount of the referendum authority is levied 481.27 against referendum market value. The board must notify the 481.28 commissionerof children, families, and learningof the amount 481.29 of referendum authority that has been converted from net tax 481.30 capacity to referendum market value, if any, by June 15, of each 481.31 year. The maximum length of a referendum converted under this 481.32 paragraph is ten years. 481.33 (b) For referendum levy amounts converted between June 1, 481.34 1997, and June 1, 1998, all other conditions of this subdivision 481.35 apply except that the maximum length of the referendum is 481.36 limited to seven years. 482.1 (c) For referendum levy amounts converted between June 1, 482.2 1998, and June 1, 1999, all other conditions of this subdivision 482.3 apply except that the maximum length of the referendum is 482.4 limited to six years. 482.5 (d) For referendum levy amounts converted between June 1, 482.6 1999, and June 1, 2000, all other conditions of this subdivision 482.7 apply except that the maximum length of the referendum is 482.8 limited to five years. 482.9 Sec. 139. Minnesota Statutes 1996, section 124A.0311, 482.10 subdivision 3, is amended to read: 482.11 Subd. 3. [ALTERNATIVE CONVERSION.] Aschooldistrict that 482.12 has a referendum that is levied against net tax capacity that 482.13 expires before taxes payable in 1998 may convert its referendum 482.14 authority according to this subdivision. In the payable year 482.15prior tobefore the year of expiration, theschoolboard may 482.16 authorize a referendum under section 124A.03. Notwithstanding 482.17 any other law to the contrary, the district may propose, and if 482.18 approved by its electors, have its referendum authority 482.19 reauthorized in part on tax capacity and in part on referendum 482.20 market value according to a schedule adopted by resolution of 482.21 theschoolboard for yearsprior tobefore taxes payable in 482.22 2001, provided that, for taxes payable in 2001 and later, the 482.23 full amount of referendum authority is levied against referendum 482.24 market value. If the full amount of the referendum is 482.25 reauthorized on referendum market value prior to taxes payable 482.26 in 1998, the referendum may extend for ten years. If the 482.27 referendum becomes fully reauthorized on referendum market value 482.28 for a later year, the referendumshallmust not extend for more 482.29 than the maximum number of years allowed under subdivision 2. 482.30 Sec. 140. Minnesota Statutes 1996, section 124A.0311, 482.31 subdivision 4, is amended to read: 482.32 Subd. 4. [REFERENDUM.] Theschoolboard must prepare and 482.33 publish in the official legal newspaper of theschooldistrict a 482.34 notice of the public meeting on the district's intent to convert 482.35 any portion of its referendum levy to market value not less than 482.36 30 days before the scheduled date of the meeting. The 483.1 resolution converting a portion of the district's referendum 483.2 levy to referendum market value becomes final unless within 30 483.3 days after the meeting where the resolution was adopted a 483.4 petition requesting an election signed by a number of qualified 483.5 voters in excess of 15 percent of the registered voters of the 483.6schooldistrict on the day the petition is filed with theschool483.7 board. If a petition is filed, then theschoolboard resolution 483.8 has no effect and the amount of referendum revenue authority 483.9 specified in the resolution cancels for taxes payable in the 483.10 following year and thereafter. Theschoolboardshallmust 483.11 schedule a referendum under section 124A.03, subdivision 2. 483.12 Sec. 141. Minnesota Statutes 1996, section 124A.032, is 483.13 amended to read: 483.14 124A.032 [ANNUAL FOUNDATION OR GENERAL EDUCATION AID 483.15 APPROPRIATION.] 483.16 There is annually appropriated from the general fund to the 483.17 departmentof children, families, and learningthe amount 483.18 necessary for general education aid. This amountshallmust be 483.19 reduced by the amount of any money specifically appropriated for 483.20 the same purpose in any year from any state fund. 483.21 Sec. 142. Minnesota Statutes 1996, section 124A.034, is 483.22 amended to read: 483.23 124A.034 [SHARED TIME AID.] 483.24 Subdivision 1. [TO RESIDENT DISTRICT.] Aid for shared time 483.25 pupilsshallmust be paid to the district of the pupil's 483.26 residence. If a pupil attends shared time classes in another 483.27 district, the resident districtshallmust pay to the district 483.28 of attendance an amount of tuition equal to the ratio in section 483.29 124A.02, subdivision 20, times the amount of tuitionwhichthat 483.30 would be charged and paid for a nonresident public school pupil 483.31 in a similar circumstance. The district of residenceshallis 483.32 notbeobligated for tuition except by previous agreement. 483.33 Subd. 1a. [EXCEPTION.] Notwithstandingthe provisions of483.34 subdivision 1, the resident district of a shared time pupil 483.35 attending shared time classes in another district may grant the 483.36 district of attendance, upon its request, permission to claim 484.1 the pupil as a resident for state aid purposes. In this case, 484.2 state aidshallmust be paid to the district of attendance and, 484.3 upon agreement, the district of attendance may bill the resident 484.4 district for any unreimbursed education costs, but not for 484.5 unreimbursed transportation costs. The agreement may, however, 484.6 provide for the resident district to pay the cost of any of the 484.7 particular transportation categories specified in section 484.8 124.225, subdivision 1, and in this case, aid for those 484.9 categoriesshallmust be paid to the district of residence 484.10 rather than to the district of attendance. 484.11 Subd. 1b. [SECTION 123.935 SERVICES.] Minutes of 484.12 enrollment in a public school during which a nonpublic school 484.13 pupil receives services pursuant to section 123.935shallmust 484.14 not be used in the computation of shared time aid. 484.15 Subd. 2. [LOCATION OF SERVICES.] Public school programs 484.16 may be provided to shared time pupils only at a public school 484.17 building; provided, however, that. Special instruction and 484.18 services for children with a disability required pursuant to 484.19 section 120.17 may also be provided at a neutral site as defined 484.20 in section 123.932, and diagnostic and health services required 484.21 pursuant to section 120.17 may also be provided at a nonpublic 484.22 school building. As used in this subdivision, "diagnostic 484.23 services" means speech, hearing, vision, psychological, medical 484.24 and dental diagnostic services and "health services" means 484.25 physician, nursing or optometric services provided to pupils in 484.26 the field of physical and mental health. 484.27 Sec. 143. Minnesota Statutes 1996, section 124A.035, is 484.28 amended to read: 484.29 124A.035 [DEDUCTIONS FROM GENERAL EDUCATION AID.] 484.30 Subd. 2. [PERMANENT SCHOOL FUND.] The amount of money 484.31 received by aschooldistrict as income from the permanent 484.32 school fund for any year, shallmust be deducted from the 484.33 general education aid earned by the district for the same year 484.34 or from aid earned from other state sources. 484.35 Subd. 3. [MINIMUM.]In no event shallThe amount payable 484.36 to any district from state sources for any one year may not be 485.1 reduced below the amount payable as apportionment of the school 485.2 endowment fund pursuant to sections 124.08 to 124.10. 485.3 Subd. 4. [COUNTY APPORTIONMENT DEDUCTION.] Each year the 485.4 amount of money apportioned to aschooldistrict for that year 485.5 pursuant to section 124.10, subdivision 2, excluding any 485.6 district where the general education levy is determined 485.7 according to section 124A.23, subdivision 3,shallmust be 485.8 deducted from the general education aid earned by that district 485.9 for the same year or from aid earned from other state sources. 485.10 Subd. 5. [TACONITE DEDUCTIONS.] (1) Notwithstanding any 485.11 provisions of any other law to the contrary, the adjusted net 485.12 tax capacity used in calculating general education aidshallmay 485.13 include only that propertywhichthat is currently taxable in 485.14 the district. 485.15 (2) For districts that received payments under sections 485.16 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 485.17 and 298.405; any law imposing a tax upon severed mineral values, 485.18 or recognized revenue pursuant to section 477A.15; the general 485.19 education aidshallmust be reduced in the final adjustment 485.20 payment by the difference between the dollar amount of the 485.21 payments received pursuant to those sections, or revenue 485.22 recognized pursuant to section 477A.15 in the fiscal year to 485.23 which the final adjustment is attributable and the amountwhich485.24 that was calculated, pursuant to section 124.918, subdivision 8, 485.25 as a reduction of the levy attributable to the fiscal year to 485.26 which the final adjustment is attributable. If the final 485.27 adjustment of a district's general education aid for a fiscal 485.28 year is a negative amount because of this clause, the next 485.29 fiscal year's general education aid to that districtshallmust 485.30 be reduced by this negative amount in the following manner: 485.31 thereshallmust be withheld from each scheduled general 485.32 education aid payment due the district in such fiscal year, 15 485.33 percent of the total negative amount, until the total negative 485.34 amount has been withheld. The amount reduced from general 485.35 education aid pursuant to this clauseshallmust be recognized 485.36 as revenue in the fiscal year to which the final adjustment 486.1 payment is attributable. 486.2 Sec. 144. Minnesota Statutes 1996, section 124A.04, as 486.3 amended by Laws 1997, First Special Session chapter 4, article 486.4 1, section 35, is amended to read: 486.5 124A.04 [TRAINING AND EXPERIENCE INDEX.] 486.6 Subd. 2. [1999 AND LATER.] The training and experience 486.7 index for fiscal year 1999 and later must be constructed in the 486.8 following manner: 486.9 (a) The departmentshallmust construct a matrix that 486.10 classifies teachers by the extent of training received in 486.11 accredited institutions of higher education and by the years of 486.12 experience that districts take into account in determining 486.13 teacher salaries. 486.14 (b) The average salary for each cell of the matrix must be 486.15 computed as follows using data from fiscal year 1997: 486.16 (1) For eachschooldistrict, multiply the salary paid to 486.17 full-time equivalent teachers with that combination of training 486.18 and experience according to the district's teacher salary 486.19 schedule by the number of actual pupil units in that district. 486.20 (2) Add the amounts computed in clause (1) for all 486.21 districts in the state and divide the resulting sum by the total 486.22 number of actual pupil units in all districts in the state that 486.23 employ teachers. 486.24 (c) For each cell in the matrix, compute the ratio of the 486.25 average salary in that cell to the average salary for all 486.26 teachers in the state during fiscal year 1997. 486.27 (d) The index for each district that employs teachers 486.28 equals the sum of: (i) for teachers employed in that district 486.29 during fiscal year 1997 and the current fiscal year, the ratios 486.30 for each teacher computed using data for fiscal year 1997; and 486.31 (ii) for teachers employed in that district during the current 486.32 fiscal year but not during fiscal year 1997, the ratio for 486.33 teachers who are in their first year of teaching and who have no 486.34 additional credits or degrees above a bachelor's degree divided 486.35 by the number of teachers in that district. The index for a 486.36 district that employs no teachers is zero. 487.1 Sec. 145. Minnesota Statutes 1996, section 124A.22, 487.2 subdivision 2a, is amended to read: 487.3 Subd. 2a. [CONTRACT DEADLINE AND PENALTY.] (a) The 487.4 following definitions apply to this subdivision: 487.5 (1) "Public employer" means: 487.6 (i) aschooldistrict; and 487.7 (ii) a public employer, as defined by section 179A.03, 487.8 subdivision 15, other than aschooldistrict that (i) negotiates 487.9 a contract under chapter 179A with teachers, and (ii) is 487.10 established by, receives state money, or levies under chapters 487.11 120 to 129, or 136D, or 268A. 487.12 (2) "Teacher" means a person, other than a superintendent 487.13 or assistant superintendent, principal, assistant principal, or 487.14 a supervisor or confidential employee who occupies a position 487.15 for which the person must be licensed by the board of teaching, 487.16 state board of education, the former board of technical 487.17 colleges, or the board of trustees of the Minnesota state 487.18 colleges and universities. 487.19 (b) Notwithstanding any law to the contrary, a public 487.20 employer and the exclusive representative of the teachersshall487.21 must both sign a collective bargaining agreement on or before 487.22 January 15 of an even-numbered calendar year. If a collective 487.23 bargaining agreement is not signed by that date, state aid paid 487.24 to the public employer for that fiscal yearshallmust be 487.25 reduced. However, state aidshallmust not be reduced if: 487.26 (1) a public employer and the exclusive representative of 487.27 the teachers have submitted all unresolved contract items to 487.28 interest arbitration according to section 179A.16 before 487.29 December 31 of an odd-numbered year and filed required final 487.30 positions on all unresolved items with the commissioner of 487.31 mediation services before January 15 of an even-numbered year; 487.32 and 487.33 (2) the arbitration panel has issued its decision within 60 487.34 days after the date the final positions were filed. 487.35 (c)(1) For a district that reorganizes according to section 487.36 122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 488.1 odd-numbered year, state aidshallmust not be reduced according 488.2 to this subdivision if theschoolboard and the exclusive 488.3 representative of the teachers both sign a collective bargaining 488.4 agreement on or before the March 15 following the effective date 488.5 of reorganization. 488.6 (2) For a district that jointly negotiates a contractprior488.7tobefore the effective date of reorganization under section 488.8 122.22, 122.23, or 122.241 to 122.248 that, for the first time, 488.9 includes teachers in all districts to be reorganized, state 488.10 aidshallmust not be reduced according to this subdivision if 488.11 theschoolboard and the exclusive representative of the 488.12 teachers sign a collective bargaining agreement on or before the 488.13 March 15 following the expiration of the teacher contracts in 488.14 each district involved in the joint negotiation. 488.15 (3) Only one extension of the contract deadline is 488.16 available to a district under this paragraph. 488.17 (d) The reductionshallmust equal $25 times the number of 488.18 fund balance pupil units: 488.19 (1) for aschooldistrict, that are in the district during 488.20 that fiscal year; or 488.21 (2) for a public employer other than aschooldistrict, 488.22 that are in programs provided by the employer during the 488.23 preceding fiscal year. 488.24 The departmentof children, families, and learning shall488.25 must determine the number of full-time equivalent actual pupil 488.26 units in the programs. The departmentof children, families,488.27and learning shallmust reduce general education aid; if general 488.28 education aid is insufficient or not paid, the departmentshall488.29 must reduce other state aids. 488.30 (e) Reductions from aid toschooldistricts and public 488.31 employers other thanschooldistrictsshallmust be returned to 488.32 the general fund. 488.33 Sec. 146. Minnesota Statutes 1996, section 124A.22, 488.34 subdivision 5, is amended to read: 488.35 Subd. 5. [DEFINITIONS.] The definitions in this 488.36 subdivision apply only to subdivisions 6 and 6a. 489.1 (a) "High school" means a secondary school that has pupils 489.2 enrolled in at least the 10th, 11th, and 12th grades. If there 489.3 is no secondary school in the district that has pupils enrolled 489.4 in at least the 10th, 11th, and 12th grades, and the school is 489.5 at least 19 miles from the next nearest school, the commissioner 489.6shallmust designate one school in the district as a high school 489.7 for the purposes of this section. 489.8 (b) "Secondary average daily membership" means, for a 489.9 district that has only one high school, the average daily 489.10 membership of resident pupils in grades 7 through 12. For a 489.11 district that has more than one high school, "secondary average 489.12 daily membership" for each high school means the product of the 489.13 average daily membership of resident pupils in grades 7 through 489.14 12 in the high school, times the ratio of six to the number of 489.15 grades in the high school. 489.16 (c) "Attendance area" means the total surface area of the 489.17 district, in square miles, divided by the number of high schools 489.18 in the district. For a district that does not operate a high 489.19 school and is less than 19 miles from the nearest operating high 489.20 school, the attendance area equals zero. 489.21 (d) "Isolation index" for a high school means the square 489.22 root of 55 percent of the attendance area plus the distance in 489.23 miles, according to the usually traveled routes, between the 489.24 high school and the nearest high school. For a district in 489.25 which there is located land defined in section 84A.01, 84A.20, 489.26 or 84A.31, the distance in miles is the sum of: 489.27 (1) the square root of one-half of the attendance area; and 489.28 (2) the distance from the border of the district to the 489.29 nearest high school. 489.30 (e) "Qualifying high school" means a high school that has 489.31 an isolation index greater than 23 and that has secondary 489.32 average daily membership of less than 400. 489.33 (f) "Qualifying elementary school" means an elementary 489.34 school that is located 19 miles or more from the nearest 489.35 elementary school or from the nearest elementary school within 489.36 the district and, in either case, has an elementary average 490.1 daily membership of an average of 20 or fewer per grade. 490.2 (g) "Elementary average daily membership" means, for a 490.3 district that has only one elementary school, the average daily 490.4 membership of resident pupils in kindergarten through grade 6. 490.5 For a district that has more than one elementary school, 490.6 "average daily membership" for each school means the average 490.7 daily membership of kindergarten through grade 6 multiplied by 490.8 the ratio of seven to the number of grades in the elementary 490.9 school. For a building in a district where the nearest 490.10 elementary school is at least 65 miles distant, pupils served 490.11shallmust be used to determine average daily membership. 490.12 Sec. 147. Minnesota Statutes 1997 Supplement, section 490.13 124A.22, subdivision 6, is amended to read: 490.14 Subd. 6. [SECONDARY SPARSITY REVENUE.] (a) A district's 490.15 secondary sparsity revenue for a school year equals the sum of 490.16 the results of the following calculation for each qualifying 490.17 high school in the district: 490.18 (1) the formula allowance for the school year, multiplied 490.19 by 490.20 (2) the secondary average daily membership of the high 490.21 school, multiplied by 490.22 (3) the quotient obtained by dividing 400 minus the 490.23 secondary average daily membership by 400 plus the secondary 490.24 daily membership, multiplied by 490.25 (4) the lesser of 1.5 or the quotient obtained by dividing 490.26 the isolation index minus 23 by ten. 490.27 (b) A newly formedschooldistrict that is the result of 490.28 districts combining under the cooperation and combination 490.29 program or consolidating under section 122.23shallmust receive 490.30 secondary sparsity revenue equal to the greater of: (1) the 490.31 amount calculated under paragraph (a) for the combined district; 490.32 or (2) the sum of the amounts of secondary sparsity revenue the 490.33 formerschooldistricts had in the year prior to consolidation, 490.34 increased for any subsequent changes in the secondary sparsity 490.35 formula. 490.36 Sec. 148. Minnesota Statutes 1996, section 124A.22, 491.1 subdivision 8, is amended to read: 491.2 Subd. 8. [SUPPLEMENTAL REVENUE.] (a) A district's 491.3 supplemental revenue allowance for fiscal year 1994 and later 491.4 fiscal years equals the district's supplemental revenue for 491.5 fiscal year 1993 divided by the district's 1992-1993 actual 491.6 pupil units. 491.7 (b) A district's supplemental revenue allowance is reduced 491.8 for fiscal year 1995 and later according to subdivision 9. 491.9 (c) A district's supplemental revenue equals the 491.10 supplemental revenue allowance, if any, times its actual pupil 491.11 units for that year. 491.12 (d) Aschooldistrict may cancel its supplemental revenue 491.13 by notifying the commissioner of education prior to June 30, 491.14 1994. Aschooldistrict that is reorganizing under section 491.15 122.22, 122.23, or 122.241 may cancel its supplemental revenue 491.16 by notifying the commissioner of children, families, and 491.17 learningprior tobefore July 1 of the year of the 491.18 reorganization. If a district cancels its supplemental revenue 491.19 according to this paragraph, its supplemental revenue allowance 491.20 for fiscal year 1993 for purposes of subdivision 9 and section 491.21 124A.03, subdivision 3b, equals zero. 491.22 Sec. 149. Minnesota Statutes 1997 Supplement, section 491.23 124A.22, subdivision 11, is amended to read: 491.24 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 491.25 operating capital revenue may be used only for the following 491.26 purposes: 491.27 (1) to acquire land for school purposes; 491.28 (2) to acquire or construct buildings for school purposes, 491.29 up to $400,000; 491.30 (3) to rent or lease buildings, including the costs of 491.31 building repair or improvement that are part of a lease 491.32 agreement; 491.33 (4) to improve and repair school sites and buildings, and 491.34 equip or reequip school buildings with permanent attached 491.35 fixtures; 491.36 (5) for a surplus school building that is used 492.1 substantially for a public nonschool purpose; 492.2 (6) to eliminate barriers or increase access to school 492.3 buildings by individuals with a disability; 492.4 (7) to bring school buildings into compliance with the 492.5 uniform fire code adopted according to chapter 299F; 492.6 (8) to remove asbestos from school buildings, encapsulate 492.7 asbestos, or make asbestos-related repairs; 492.8 (9) to clean up and dispose of polychlorinated biphenyls 492.9 found in school buildings; 492.10 (10) to clean up, remove, dispose of, and make repairs 492.11 related to storing heating fuel or transportation fuels such as 492.12 alcohol, gasoline, fuel oil, and special fuel, as defined in 492.13 section 296.01; 492.14 (11) for energy audits for school buildings and to modify 492.15 buildings if the audit indicates the cost of the modification 492.16 can be recovered within ten years; 492.17 (12) to improve buildings that are leased according to 492.18 section 123.36, subdivision 10; 492.19 (13) to pay special assessments levied against school 492.20 property but not to pay assessments for service charges; 492.21 (14) to pay principal and interest on state loans for 492.22 energy conservation according to section 216C.37 or loans made 492.23 under the Northeast Minnesota Economic Protection Trust Fund Act 492.24 according to sections 298.292 to 298.298; 492.25 (15) to purchase or lease interactive telecommunications 492.26 equipment; 492.27 (16) byschoolboard resolution, to transfer money into the 492.28 debt redemption fund to: (i) pay the amounts needed to meet, 492.29 when due, principal and interest payments on certain obligations 492.30 issued according to chapter 475; or (ii) pay principal and 492.31 interest on debt service loans or capital loans according to 492.32 section 124.44; 492.33 (17) to pay capital expenditure equipment-related 492.34 assessments of any entity formed under a cooperative agreement 492.35 between two or more districts; 492.36 (18) to purchase or lease computers and related materials, 493.1 copying machines, telecommunications equipment, and other 493.2 noninstructional equipment; 493.3 (19) to purchase or lease assistive technology or equipment 493.4 for instructional programs; 493.5 (20) to purchase textbooks; 493.6 (21) to purchase new and replacement library books; 493.7 (22) to purchase vehicles; 493.8 (23) to purchase or lease telecommunications equipment, 493.9 computers, and related equipment for integrated information 493.10 management systems for: 493.11 (i) managing and reporting learner outcome information for 493.12 all students under a results-oriented graduation rule; 493.13 (ii) managing student assessment, services, and achievement 493.14 information required for students with individual education 493.15 plans; and 493.16 (iii) other classroom information management needs; and 493.17 (24) to pay personnel costs directly related to the 493.18 acquisition, operation, and maintenance of telecommunications 493.19 systems, computers, related equipment, and network and 493.20 applications software. 493.21 Sec. 150. Minnesota Statutes 1996, section 124A.22, 493.22 subdivision 12, is amended to read: 493.23 Subd. 12. [MAINTENANCE COST INDEX.] (a) A district's 493.24 maintenance cost index is equal to the ratio of: 493.25 (1) the total weighted square footage for all eligible 493.26 district-owned facilities; and 493.27 (2) the total unweighted square footage of these facilities. 493.28 (b) The department shall determine a district's maintenance 493.29 cost index annually. Eligible district-owned facilitiesshall493.30 must include only instructional or administrative square footage 493.31 owned by the district. The commissionerof children, families,493.32and learningmay adjust the age of a building or addition for 493.33 major renovation projects. 493.34 (c) The square footage weighting factor for each original 493.35 building or addition equals the lesser of: 493.36 (1) one plus the ratio of the age in years to 100; or 494.1 (2) 1.5. 494.2 (d) The weighted square footage for each original building 494.3 or addition equals the product of the unweighted square footage 494.4 times the square footage weighting factor. 494.5 Sec. 151. Minnesota Statutes 1997 Supplement, section 494.6 124A.22, subdivision 13, is amended to read: 494.7 Subd. 13. [TRANSPORTATION SPARSITY DEFINITIONS.] The 494.8 definitions in this subdivision apply to subdivisions 13a and 494.9 13b. 494.10 (a) "Sparsity index" for aschooldistrict means the 494.11 greater of .2 or the ratio of the square mile area of theschool494.12 district to the actual pupil units of theschooldistrict. 494.13 (b) "Density index" for aschooldistrict means the ratio 494.14 of the square mile area of theschooldistrict to the actual 494.15 pupil units of theschooldistrict. However, the density index 494.16 for aschooldistrict cannot be greater than .2 or less than 494.17 .005. 494.18 (c) "Fiscal year 1996 base allowance" for aschooldistrict 494.19 means the result of the following computation: 494.20 (1) sum the following amounts: 494.21 (i) the fiscal year 1996 regular transportation revenue for 494.22 theschooldistrict according to section 124.225, subdivision 494.23 7d, paragraph (a), excluding the revenue attributable nonpublic 494.24 school pupils and to pupils with disabilities receiving special 494.25 transportation services; plus 494.26 (ii) the fiscal year 1996 nonregular transportation revenue 494.27 for theschooldistrict according to section 124.225, 494.28 subdivision 7d, paragraph (b), excluding the revenue for 494.29 desegregation transportation according to section 124.225, 494.30 subdivision 1, paragraph (c), clause (4), and the revenue 494.31 attributable to nonpublic school pupils and to pupils with 494.32 disabilities receiving special transportation services or board 494.33 and lodging; plus 494.34 (iii) the fiscal year 1996 excess transportation levy for 494.35 theschooldistrict according to section 124.226, subdivision 5, 494.36 excluding the levy attributable to nonpublic school pupils; plus 495.1 (iv) the fiscal year 1996 late activity bus levy for the 495.2schooldistrict according to section 124.226, subdivision 9, 495.3 excluding the levy attributable to nonpublic school pupils; plus 495.4 (v) an amount equal to one-third of the fiscal year 1996 495.5 bus depreciation for theschooldistrict according to section 495.6 124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4). 495.7 (2) divide the result in clause (1) by theschool495.8 district's 1995-1996 fund balance pupil units. 495.9 Sec. 152. Minnesota Statutes 1996, section 124A.225, 495.10 subdivision 4, is amended to read: 495.11 Subd. 4. [REVENUE USE.] (a) Revenue must be used according 495.12 to either paragraph (b),or (c), or (d). 495.13 (b) Revenueshallmust be used to reduce and maintain the 495.14 district's instructor to learner ratios in kindergarten through 495.15 grade 6 to a level of 1 to 17 on average. The district must 495.16 prioritize the use of the revenue to attain this level initially 495.17 in kindergarten and grade 1 and then through the subsequent 495.18 grades as revenue is available. 495.19 (c)Notwithstanding paragraph (b), for fiscal year 1995, a495.20district with exceptional need as defined in subdivision 6,495.21paragraph (a), may use the revenue to reduce and maintain the495.22district's instructor-to-learner ratios in kindergarten through495.23grade 6 to a level that is at least 2.0 less than the district's495.24adopted staffing ratio, if the remaining learning and495.25development revenue is used to continue or initiate staffing495.26patterns that meet the needs of a diverse student population.495.27Programs to meet the needs of a diverse student population may495.28include programs for at-risk pupils and learning enrichment495.29programs.495.30(d) For fiscal year 1995 only, in any school building that495.31meets the characteristics of exceptional need as defined in495.32subdivision 6, paragraph (b), a district may use the revenue to495.33employ education assistants or aides supervised by a learner's495.34regular instructor to assist learners in those school buildings.495.35(e)The revenue may be used to prepare and use an 495.36 individualized learning plan for each learner. A district must 496.1 not increase the district wideinstructor-learner496.2 instructor-to-learner ratios in other grades as a result of 496.3 reducinginstructor-learnerinstructor-to-learner ratios in 496.4 kindergarten through grade 6. Revenue may not be used to 496.5 provide instructor preparation time or to provide the district's 496.6 share of revenue required under section 124.311. Aschool496.7 district may use a portion of the revenue reserved under this 496.8 section to employ up to the same number of full-time equivalent 496.9 education assistants or aides as the district employed during 496.10 the 1992-1993 school year under Minnesota Statutes 1992, section 496.11 124.331, subdivision 2. 496.12 Sec. 153. Minnesota Statutes 1996, section 124A.225, 496.13 subdivision 5, is amended to read: 496.14 Subd. 5. [ADDITIONAL REVENUE USE.] If theschoolboard of 496.15 aschooldistrict determines that the district has achieved and 496.16 is maintaining theinstructor-learnerinstructor-to-learner 496.17 ratios specified in subdivision 4 and is using individualized 496.18 learning plans, theschoolboard may use the revenue to purchase 496.19 material and services or provide staff development needed for 496.20 reducedinstructor-learnerinstructor-to-learner ratios. If 496.21 additional revenue remains, the district must use the revenue to 496.22 improve program offerings, including programs provided through 496.23 interactive television, throughout the district or other general 496.24 education purposes. 496.25 Sec. 154. Minnesota Statutes 1997 Supplement, section 496.26 124A.23, subdivision 1, is amended to read: 496.27 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 496.28 commissionershallmust establish the general education tax rate 496.29 by July 1 of each year for levies payable in the following year. 496.30 The general education tax capacity rateshallmust be a rate, 496.31 rounded up to the nearest hundredth of a percent, that, when 496.32 applied to the adjusted net tax capacity for all districts, 496.33 raises the amount specified in this subdivision. The general 496.34 education tax rateshallmust be the rate that raises 496.35 $1,359,000,000 for fiscal year 1998 and $1,385,500,000 for 496.36 fiscal year 1999 and later fiscal years. The general education 497.1 tax rate may not be changed due to changes or corrections made 497.2 to a district's adjusted net tax capacity after the tax rate has 497.3 been established. If the levy target for fiscal year 1999 is 497.4 changed by another law enacted during the 1997 session, the 497.5 commissioner shall reduce the target in this bill by the amount 497.6 of the reduction in the enacted law. 497.7 Sec. 155. Minnesota Statutes 1997 Supplement, section 497.8 124A.23, subdivision 2, is amended to read: 497.9 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 497.10 education revenue, excluding transition revenue and supplemental 497.11 revenue, a district may levy an amount not to exceed the general 497.12 education tax rate times the adjusted net tax capacity of the 497.13 district for the preceding year. If the amount of the general 497.14 education levy would exceed the general education revenue, 497.15 excluding supplemental revenue, the general education levyshall497.16 must be determined according to subdivision 3. 497.17 Sec. 156. Minnesota Statutes 1997 Supplement, section 497.18 124A.23, subdivision 3, is amended to read: 497.19 Subd. 3. [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 497.20 FORMULA.] If the amount of the general education levy for a 497.21 district exceeds the district's general education revenue, 497.22 excluding transition revenue and supplemental revenue, the 497.23 amount of the general education levyshallmust be limited to 497.24 the following: 497.25 (1) the district's general education revenue, excluding 497.26 transition revenue and supplemental revenue; plus 497.27 (2) the amount of the aid reduction for the same school 497.28 year according to section 124A.24; minus 497.29 (3) payments made for the same school year according to 497.30 section 124A.035, subdivision 4. 497.31 For purposes of statutory cross-reference, a levy made 497.32 according to this subdivision shall be construed to be the levy 497.33 made according to subdivision 2. 497.34 Sec. 157. Minnesota Statutes 1997 Supplement, section 497.35 124A.28, subdivision 3, is amended to read: 497.36 Subd. 3. [ANNUAL EXPENDITURE REPORT.] Each year a district 498.1 that receives compensatory education revenueshallmust submit a 498.2 report identifying the expenditures it incurred to meet the 498.3 needs of eligible learners under subdivision 1. The report must 498.4 conform to uniform financial and reporting standards established 498.5 for this purpose. 498.6 Sec. 158. Minnesota Statutes 1996, section 124A.30, is 498.7 amended to read: 498.8 124A.30 [STATEWIDE AVERAGE REVENUE.] 498.9 By October 1 of each year the commissionershallmust 498.10 estimate the statewide average general education revenue per 498.11 actual pupil unit and the range in general education revenue 498.12 among pupils and districts by computing the difference between 498.13 the fifth and ninety-fifth percentiles of general education 498.14 revenue. The commissioner must provide that information to 498.15 allschooldistricts. 498.16 If the disparity in general education revenue as measured 498.17 by the difference between the fifth and ninety-fifth percentiles 498.18 increases in any year, the commissioner must propose a change in 498.19 the general education formula that will limit the disparity in 498.20 general education revenue to no more than the disparity for the 498.21 previous school year. The commissioner must submit the proposal 498.22 to the education committees of the legislature by January 15. 498.23 Sec. 159. Minnesota Statutes 1996, section 124C.498, as 498.24 amended by Laws 1997, First Special Session chapter 4, article 498.25 2, section 33, and article 7, section 7, is amended to read: 498.26 124C.498 [METROPOLITAN MAGNET SCHOOL GRANTS.] 498.27 Subdivision 1. [POLICY AND PURPOSE.] A metropolitan magnet 498.28 school grant program is established for the purpose of promoting 498.29 integrated education for students in prekindergarten through 498.30 grade 12,increaseincreasing mutual understanding among all 498.31 students, andaddressaddressing the inability of local school 498.32 districts to provide required construction funds through local 498.33 property taxes. The program seeks to encourageschooldistricts 498.34 located in whole or in part within the seven-county metropolitan 498.35 area to make available to school age children residing in the 498.36 metropolitan area those educational programs, services, and 499.1 facilities that are essential to meeting all children's needs 499.2 and abilities. The program anticipates using the credit of the 499.3 state, to a limited degree, to provide grants to metropolitan 499.4 area school districts to improve the educational opportunities 499.5 and academic achievement of disadvantaged children and the 499.6 facilities that are available to those children. 499.7 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 499.8 extent money is available, the commissionerof children,499.9families, and learningmay approve projects from applications 499.10 submitted under this section. The grant money must be used only 499.11 to design, acquire, construct, remodel, improve, furnish, or 499.12 equip the building or site of a magnet school facility according 499.13 to contracts entered into within 24 months after the date on 499.14 which a grant is awarded. 499.15 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 499.16 school districts that meets the criteria required under 499.17 paragraph (b)(i) may apply for a magnet school grant in an 499.18 amount not to exceed $15,000,000 for the approved costs or 499.19 expansion of a magnet school facility. 499.20 (b)(i) Any group of districts that submits an application 499.21 for a grant shall submit a proposal to the commissioner for 499.22 review and comment under section 121.15, and the commissioner 499.23 shall prepare a review and comment on the proposed magnet school 499.24 facility, regardless of the amount of the capital expenditure 499.25 required to design, acquire, construct, remodel, improve, 499.26 furnish, or equip the facility. The commissioner must not 499.27 approve an application for a magnet school grant for any 499.28 facility unless the facility receives a favorable review and 499.29 comment under section 121.15 and the participating districts: 499.30 (1) establish a joint powers board under section 471.59 to 499.31 represent all participating districts and govern the magnet 499.32 school facility; 499.33 (2) design the planned magnet school facility to meet the 499.34 applicable requirements contained in Minnesota Rules, chapter 499.35 3535; 499.36 (3) submit a statement of need, including reasons why the 500.1 magnet school will facilitate integration and improve learning; 500.2 (4) prepare an educational plan that includes input from 500.3 both community and professional staff; and 500.4 (5) develop an education program that will improve learning 500.5 opportunities for students attending the magnet school. 500.6 (ii) The districts may develop a plan that permits social 500.7 service, health, and other programs serving students and 500.8 community residents to be located within the magnet school 500.9 facility. The commissioner shall consider this plan when 500.10 preparing a review and comment on the proposed facility. 500.11 (c) When two or more districts enter into an agreement 500.12 establishing a joint powers board to govern the magnet school 500.13 facility, all member districts shall have the same powers. 500.14 (d) A joint powers board of participating school districts 500.15 established under paragraphs (b) and (c) that intends to apply 500.16 for a grantshallmust adopt a resolution stating the costs of 500.17 the proposed project, the purpose for which the debt is to be 500.18 incurred, and an estimate of the dates when the contracts for 500.19 the proposed project will be completed. A copy of the 500.20 resolution must accompany any application for a state grant 500.21 under this section. 500.22 (e)(i) The commissioner shall examine and consider all 500.23 grant applications. If the commissioner finds that any joint 500.24 powers district is not a qualified grant applicant, the 500.25 commissioner shall promptly notify that joint powers board. The 500.26 commissioner shall make awards to no more than two qualified 500.27 applicants whose applications have been on file with the 500.28 commissioner more than 30 days. 500.29 (ii) A grant award is subject to verification by the joint 500.30 powers board under paragraph (f). A grant award must not be 500.31 made until the participating districts determine the site of the 500.32 magnet school facility. If the total amount of the approved 500.33 applications exceeds the amount of grant funding that is or can 500.34 be made available, the commissioner shall allot the available 500.35 amount equally between the approved applicant districts. The 500.36 commissioner shall promptly certify to each qualified joint 501.1 powers board the amount, if any, of the grant awarded to it. 501.2 (f) Each grant must be evidenced by a contract between the 501.3 joint powers board and the state acting through the 501.4 commissioner. The contract obligates the state to pay to the 501.5 joint powers board an amount computed according to paragraph 501.6 (e)(ii) and a schedule, and terms and conditions acceptable to 501.7 the commissioner of finance. 501.8 Sec. 160. Minnesota Statutes 1996, section 124C.60, 501.9 subdivision 2, is amended to read: 501.10 Subd. 2. [PROCEDURES.] The state board shall establish 501.11 procedures and deadlines for the grant application. The state 501.12 boardshallmust review each application and may require 501.13 modifications consistent with sections 122.241 to 122.248. 501.14 Sec. 161. Minnesota Statutes 1996, section 124C.72, 501.15 subdivision 2, is amended to read: 501.16 Subd. 2. [APPLICATION FORMS.] The commissionerof501.17children, families, and learningshall prepare application forms 501.18 and establish application dates. 501.19 Sec. 162. Minnesota Statutes 1996, section 124C.73, 501.20 subdivision 3, is amended to read: 501.21 Subd. 3. [AWARD OF GRANTS.](a)The commissioner shall 501.22 examine and consider all applications for grants, and if a 501.23 district is found not qualified, the commissioner shall promptly 501.24 notify the district board. The commissioner shall give first 501.25 priority toschooldistricts that have entered into the 501.26 cooperation and combination process under sections 122.241 to 501.27 122.248, or that have consolidated since January 1, 1987. The 501.28 commissioner shall further prioritize grants on the basis of the 501.29 following: the district's tax burden, the long-term feasibility 501.30 of the project, the suitability of the project, and the 501.31 district's need for the project. If the total amount of the 501.32 applications exceeds the amount that is or can be made 501.33 available, the commissioner shall award grants according to the 501.34 commissioner's judgment and discretion and based upon a ranking 501.35 of the projects according to the factors listed in this 501.36 paragraph. The commissioner shall promptly certify to each 502.1 district the amount, if any, of the grant awarded to it. 502.2(b) For fiscal year 1994, the commissioner may develop502.3criteria in addition to the factors listed in paragraph (a), in502.4order to award demonstration grants.502.5 Sec. 163. [REPEALER.] 502.6 (a) Minnesota Statutes 1996, sections 124.01; 124.19, 502.7 subdivision 4; 124.38, subdivision 9; 124.472; 124.473; 124.474; 502.8 124.476; 124.477; 124.478; 124.479; 124.71, subdivision 2; 502.9 124A.02, subdivisions 15 and 16; 124A.029, subdivision 2; 502.10 124A.03, subdivision 3b; 124A.22, subdivision 13f; 124A.225, 502.11 subdivision 6; and 124A.31; Minnesota Statutes 1997 Supplement, 502.12 section 124A.26, are repealed. 502.13 (b) Minnesota Statutes 1996, section 124.2725, subdivisions 502.14 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, and 16; and Minnesota 502.15 Statutes 1997 Supplement, section 124.2725, subdivision 11, are 502.16 repealed. 502.17 Sec. 164. [INSTRUCTION TO REVISOR.] 502.18 The revisor of statutes shall renumber each section of 502.19 Minnesota Statutes listed in column A with the number listed in 502.20 column B. The revisor shall also make necessary cross-reference 502.21 changes consistent with the renumbering. 502.22 Column A Column B 502.23 124A.02, subd. 1 124D.01, subd. 1 502.24 subd. 3a subd. 2 502.25 subd. 3b subd. 3 502.26 subd. 8 subd. 4 502.27 subd. 10 subd. 5 502.28 subd. 20 subd. 6 502.29 subd. 21 subd. 7 502.30 subd. 22 subd. 8 502.31 subd. 23 subd. 9 502.32 subd. 24 subd. 10 502.33 subd. 25 subd. 11 502.34 124.17, subd. 1 120D.02, subd. 1 502.35 subd. 1c subd. 2 502.36 subd. 1d subd. 3 503.1 subd. 1e subd. 4 503.2 subd. 1f subd. 5 503.3 subd. 1g subd. 6 503.4 subd. 1h subd. 7 503.5 subd. 2 subd. 8 503.6 subd. 2a subd. 9 503.7 subd. 2b subd. 10 503.8 subd. 2c subd. 11 503.9 subd. 2e subd. 12 503.10 subd. 2f subd. 13 503.11 subd. 3 subd. 14 503.12 subd. 4 subd. 15 503.13 subd. 6 subd. 16 503.14 subd. 7 subd. 17 503.15 124.175 124D.03 503.16 124.19, subd. 3 124D.04, subd. 1 503.17 subd. 5 subd. 2 503.18 124A.22, subd. 1 124D.05, subd. 1 503.19 subd. 2 subd. 2 503.20 subd. 2a subd. 3 503.21 subd. 3 subd. 4 503.22 subd. 3a subd. 5 503.23 subd. 4 subd. 6 503.24 subd. 5 subd. 7 503.25 subd. 6 subd. 8 503.26 subd. 6a subd. 9 503.27 subd. 8 subd. 10 503.28 subd. 8a subd. 11 503.29 subd. 8b subd. 12 503.30 subd. 9 subd. 13 503.31 subd. 10 subd. 14 503.32 subd. 11 subd. 15 503.33 subd. 11a subd. 16 503.34 subd. 12 subd. 17 503.35 subd. 13 subd. 18 503.36 subd. 13a subd. 19 504.1 subd. 13b subd. 20 504.2 subd. 13c subd. 21 504.3 subd. 13d subd. 22 504.4 subd. 13e subd. 23 504.5 124A.04 124D.06 504.6 124A.225 124D.07 504.7 124A.23 124D.08 504.8 124A.24 124D.09 504.9 124A.28, subd. 1 124D.10, subd. 1 504.10 subd. 1a subd. 2 504.11 subd. 1b subd. 3 504.12 subd. 2 subd. 4 504.13 subd. 3 subd. 5 504.14 124A.029, subd. 1 124D.11, subd. 1 504.15 subd. 3 subd. 2 504.16 subd. 4 subd. 3 504.17 124A.03, subd. 1b 124D.12, subd. 1 504.18 subd. 1c subd. 2 504.19 subd. 1d subd. 3 504.20 subd. 1e subd. 4 504.21 subd. 1f subd. 5 504.22 subd. 1g subd. 6 504.23 subd. 1h subd. 7 504.24 subd. 1i subd. 8 504.25 subd. 2 subd. 9 504.26 subd. 2a subd. 10 504.27 subd. 2b subd. 11 504.28 subd. 3c subd. 12 504.29 124A.0311 124D.13 504.30 124A.032 124D.14 504.31 124A.034, subd. 1 124D.15, subd. 1 504.32 subd. 1a subd. 2 504.33 subd. 2 subd. 3 504.34 124A.035, subd. 2 124D.16, subd. 1 504.35 subd. 3 subd. 2 504.36 subd. 4 subd. 3 505.1 subd. 5 subd. 4 505.2 124A.30 124D.17 505.3 123.76 124D.18 505.4 123.77 124D.19 505.5 123.78, subd. 1 124D.20, subd. 1 505.6 subd. 1a subd. 2 505.7 subd. 2 subd. 3 505.8 subd. 3 subd. 4 505.9 123.79 124D.21 505.10 123.799 124D.22 505.11 123.7991 124D.23 505.12 123.7992 124D.24 505.13 123.801 124D.25 505.14 123.805 124D.26 505.15 124.225, subd. 1 124D.27, subd. 1 505.16 subd. 7f subd. 2 505.17 subd. 8l subd. 3 505.18 subd. 8m subd. 4 505.19 subd. 9 subd. 5 505.20 subd. 13 subd. 6 505.21 subd. 14 subd. 7 505.22 subd. 15 subd. 8 505.23 subd. 16 subd. 9 505.24 subd. 17 subd. 10 505.25 124.2726 124D.28 505.26 124.2727, subd. 6a 124D.29, subd. 1 505.27 subd. 6b subd. 2 505.28 subd. 6c subd. 3 505.29 subd. 6d subd. 4 505.30 subd. 9 subd. 5 505.31 124.646, subd. 1 124D.30, subd. 1 505.32 subd. 3 subd. 2 505.33 subd. 4 subd. 3 505.34 121.11, subd. 14 124D.31 505.35 124.6462 124D.32 505.36 124.6469 124D.33 506.1 124.647 124D.34 506.2 124.6471 124D.35 506.3 124.6472 124D.36 506.4 124.648 124D.37 506.5 124.6475 124D.38 506.6 124.912, subd. 1 124D.39, subd. 1 506.7 subd. 2 subd. 2 506.8 subd. 3 subd. 3 506.9 subd. 6 subd. 4 506.10 subd. 7 subd. 5 506.11 subd. 9 subd. 6 506.12 124.914 124D.40 506.13 124.916 124D.41 506.14 127.05 124D.42 506.15 124.918 124D.43 506.16 124.71 124D.44 506.17 124.72 124D.45 506.18 124.73 124D.46 506.19 123.931 124D.47 506.20 123.932, subd. 1a 124D.48, subd. 1 506.21 subd. 1b subd. 2 506.22 subd. 1c subd. 3 506.23 subd. 1d subd. 4 506.24 subd. 1e subd. 5 506.25 subd. 2a subd. 6 506.26 subd. 2b subd. 7 506.27 subd. 2c subd. 8 506.28 subd. 3 subd. 9 506.29 subd. 3a subd. 10 506.30 subd. 5 subd. 11 506.31 subd. 7 subd. 12 506.32 subd. 9 subd. 13 506.33 subd. 10 subd. 14 506.34 subd. 11 subd. 15 506.35 123.933 124D.49 506.36 123.935 124D.50 507.1 123.936 124D.51 507.2 123.9361 124D.52 507.3 123.9362 124D.53 507.4 123.937 124D.54 507.5 123.947 124D.55 507.6 124.239, subd. 1 124D.56, subd. 1 507.7 subd. 2 subd. 2 507.8 subd. 3 subd. 3 507.9 subd. 4 subd. 4 507.10 subd. 5 subd. 5 507.11 subd. 5a subd. 6 507.12 subd. 5b subd. 7 507.13 subd. 6 subd. 8 507.14 124.242 124D.57 507.15 124.2445 124D.58 507.16 124.2455 124D.59 507.17 124.82 124D.60 507.18 124.95, subd. 1 124D.61, subd. 1 507.19 subd. 2 subd. 2 507.20 subd. 2a subd. 3 507.21 subd. 3 subd. 4 507.22 subd. 4 subd. 5 507.23 subd. 5 subd. 6 507.24 subd. 6 subd. 7 507.25 124.961 124D.62 507.26 124.97 124D.63 507.27 124.825 124D.64 507.28 124.829 124D.65 507.29 124.83 124D.66 507.30 124.84 124D.67 507.31 124.85, subd. 1 124D.68, subd. 1 507.32 subd. 2 subd. 2 507.33 subd. 2a subd. 3 507.34 subd. 2b subd. 4 507.35 subd. 2c subd. 5 507.36 subd. 3 subd. 6 508.1 subd. 4 subd. 7 508.2 subd. 5 subd. 8 508.3 subd. 6 subd. 9 508.4 subd. 7 subd. 10 508.5 124.91, subd. 1 124D.69, subd. 1 508.6 subd. 2 subd. 2 508.7 subd. 4 subd. 3 508.8 subd. 5 subd. 4 508.9 subd. 6 subd. 5 508.10 subd. 7 subd. 6 508.11 124.74 124D.70 508.12 124.75 124D.71 508.13 124.755 124D.72 508.14 124.76 124D.73 508.15 124C.60 124D.74 508.16 124.35 124D.75 508.17 124.36 124D.76 508.18 124.37 124D.77 508.19 124.38, subd. 1 124D.78, subd. 1 508.20 subd. 2 subd. 2 508.21 subd. 3 subd. 3 508.22 subd. 4 subd. 4 508.23 subd. 4a subd. 5 508.24 subd. 5 subd. 6 508.25 subd. 6 subd. 7 508.26 subd. 7 subd. 8 508.27 subd. 8 subd. 9 508.28 subd. 8a subd. 10 508.29 subd. 11 subd. 11 508.30 subd. 12 subd. 12 508.31 subd. 13 subd. 13 508.32 subd. 14 subd. 14 508.33 124.381 124D.79 508.34 124.39 124D.80 508.35 124.40 124D.81 508.36 124.41 124D.82 509.1 124.42 124D.83 509.2 124.431, subd. 1 124D.84, subd. 1 509.3 subd. 1a subd. 2 509.4 subd. 2 subd. 3 509.5 subd. 3 subd. 4 509.6 subd. 4 subd. 5 509.7 subd. 5 subd. 6 509.8 subd. 6 subd. 7 509.9 subd. 7 subd. 8 509.10 subd. 8 subd. 9 509.11 subd. 9 subd. 10 509.12 subd. 10 subd. 11 509.13 subd. 11 subd. 12 509.14 subd. 12 subd. 13 509.15 subd. 13 subd. 14 509.16 subd. 14 subd. 15 509.17 124.44 124D.85 509.18 124.45 124D.86 509.19 124.46 124D.87 509.20 124.491 124D.88 509.21 124.492 124D.89 509.22 124.493, subd. 1 124D.90, subd. 1 509.23 subd. 3 subd. 2 509.24 124.494, subd. 1 124D.91, subd. 1 509.25 subd. 2 subd. 2 509.26 subd. 2a subd. 3 509.27 subd. 3 subd. 4 509.28 subd. 4 subd. 5 509.29 subd. 4a subd. 6 509.30 subd. 5 subd. 7 509.31 subd. 6 subd. 8 509.32 subd. 7 subd. 9 509.33 124.4945 124D.92 509.34 124.4946 124D.93 509.35 124.495 124D.94 509.36 124C.498 124D.95 510.1 124C.71 124D.96 510.2 124C.72 124D.97 510.3 124C.73 124D.98 510.4 ARTICLE 8 510.5 CHAPTER 125A 510.6 TEACHERS 510.7 Section 1. Minnesota Statutes 1996, section 123.35, 510.8 subdivision 5, is amended to read: 510.9 Subd. 5. [HIRING TEACHERS; SUBSTITUTE TEACHERS.] The board 510.10shallmust employ and contract with necessary qualified teachers 510.11 and discharge the same for cause. The boardshallmust not hire 510.12 a substitute teacher except: 510.13 (a) For a duration of time of less than one school year to 510.14 replace a regular teacher who is absent; or 510.15 (b) For a duration of time equal to or greater than one 510.16 school year to replace a regular teacher on a leave of absence. 510.17 If a substitute teacher is hired pursuant to clause (b), 510.18 each full school year during which the teacher is employed by a 510.19 district pursuant to that clause shall be deemed one year of the 510.20 teacher's probationary period of employment pursuant to either 510.21 section 125.12, subdivision 3, or 125.17, subdivision 2. The 510.22 teacher shall be eligible for continuing contract status 510.23 pursuant to section 125.12, subdivision 4, or tenure status 510.24 pursuant to section 125.17, subdivision 3, after completion of 510.25 the applicable probationary period. 510.26 Sec. 2. Minnesota Statutes 1996, section 123.35, 510.27 subdivision 13, is amended to read: 510.28 Subd. 13. [PRACTICE OR STUDENT TEACHERS.] The board may, 510.29 by agreements with teacher preparing institutions, arrange for 510.30 classroom experience in the district for practice or student 510.31 teachers who have completed not less than two years of an 510.32 approved teacher education program. Such practice 510.33 teachersshallmust be provided with appropriate supervision by 510.34 a fully qualified teacher under rules promulgated by the 510.35 boardand shall be. Practice teachers are deemed employees of 510.36 the school district in which they are rendering services for 511.1 purposes of workers' compensation; liability insurance, if 511.2 provided for other district employees in accordance with section 511.3 123.41; and legal counsel in accordance with the provisions of 511.4 section 127.03. 511.5 Sec. 3. Minnesota Statutes 1996, section 124.278, 511.6 subdivision 3, is amended to read: 511.7 Subd. 3. [REIMBURSEMENT.] Reimbursementshallmust equal 511.8 one-half of the salary and fringe benefits, but not more than 511.9 $20,000. The districtshallmust receive reimbursement for each 511.10 year a minority teacher, aide, or education assistant is 511.11 employed. The departmentof children, families, and learning511.12shallmust establish application or other procedures for 511.13 districts to obtain the reimbursement. The departmentshall511.14 must not prorate the reimbursement. 511.15 Sec. 4. Minnesota Statutes 1996, section 124A.29, is 511.16 amended to read: 511.17 124A.29 [RESERVED REVENUE FOR STAFF DEVELOPMENT.] 511.18 Subdivision 1. [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 511.19 REVENUE.] A district is encouraged to reserve general education 511.20 revenue for in-service education for programs under section 511.21 126.77, subdivision 2, for staff development plans, including 511.22 plans for challenging instructional activities and experiences 511.23 under section 126.70, and for curriculum development and 511.24 programs, other in-service education, teachers' workshops, 511.25 teacher conferences, the cost of substitute teachers staff 511.26 development purposes, and other related costs for staff 511.27 development efforts. Districts may expend an additional amount 511.28 of basic revenue for staff development based on their needs. 511.29 Theschoolboardshallmust initially allocate 50 percent of the 511.30 revenue to each school site in the district on a per teacher 511.31 basis, whichshallmust be retained by the school site until 511.32 used. The board may retain 25 percent to be used for district 511.33 wide staff development efforts. The remaining 25 percent of the 511.34 revenueshallmust be used to make grants to school sites that 511.35 demonstrate exemplary use of allocated staff development 511.36 revenue. A grant may be used for any purpose authorized under 512.1 section 126.70, 126.77, subdivision 2, or for the costs of 512.2 curriculum development and programs, other in-service education, 512.3 teachers' workshops, teacher conferences, substitute teachers 512.4 for staff development purposes, and other staff development 512.5 efforts, and determined by the site decision-making team. The 512.6 site decision-making team must demonstrate to theschoolboard 512.7 the extent to which staff at the site have met the outcomes of 512.8 the program. The board may withhold a portion of initial 512.9 allocation of revenue if the staff development outcomes are not 512.10 being met. 512.11 Subd. 2. [CAREER TEACHER STAFF DEVELOPMENT.] Of a 512.12 district's basic revenue under section 124A.22, subdivision 2, 512.13 an amount equal to $5 times the number of actual pupil units 512.14shallmust be reserved by a district operating a career teacher 512.15 program according to sections 125.701 to 125.705. The revenue 512.16 may be used only to provide staff development for the career 512.17 teacher program. 512.18 Sec. 5. Minnesota Statutes 1996, section 124C.41, 512.19 subdivision 4, is amended to read: 512.20 Subd. 4. [POLICY BOARD POWERS AND DUTIES.] The policy 512.21 board shall develop policy, designate a fiscal agent, adopt a 512.22 budget, expend funds to accomplish the purposes of the center, 512.23 contract for technical and other assistance, and perform other 512.24 managerial or supervisory activities consistent with the rules 512.25 of the state board of education. The policy board may employ 512.26 staff or contract with consultants for services. 512.27 Sec. 6. Minnesota Statutes 1996, section 125.03, 512.28 subdivision 1, is amended to read: 512.29 Subdivision 1. [TEACHERS.] The term "teachers" for the 512.30 purpose of licensure, means all persons employed in a public 512.31 school or education district or by aSCservice cooperative as 512.32 members of the instructional, supervisory, and support staff 512.33 including superintendents, principals, supervisors, secondary 512.34 vocational and other classroom teachers, librarians, counselors, 512.35 school psychologists, school nurses, school social workers, 512.36 audio-visual directors and coordinators, recreation personnel, 513.1 media generalists, media supervisors, and speech therapists. 513.2 Sec. 7. Minnesota Statutes 1996, section 125.03, 513.3 subdivision 6, is amended to read: 513.4 Subd. 6. [ASSESSMENT PROFESSIONALS.] When aschoolboard 513.5 of aschooldistrict with 10,000 pupils or more in average daily 513.6 membership employs a person to administer or interpret 513.7 individual aptitude, intelligence or personality tests, the 513.8 person must hold a graduate level degree related to 513.9 administering and interpreting psychological assessments. 513.10 Sec. 8. Minnesota Statutes 1996, section 125.04, is 513.11 amended to read: 513.12 125.04 [QUALIFIED TEACHER DEFINED.] 513.13 A qualified teacher is one holding a valid license,as513.14hereinafter providedunder this chapter, to perform the 513.15 particular service for which employed in a public school. 513.16 Sec. 9. Minnesota Statutes 1996, section 125.05, 513.17 subdivision 1, is amended to read: 513.18 Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of 513.19 teachingshallmust license teachers, as defined in section 513.20 125.03, subdivision 1, except for supervisory personnel, as 513.21 defined in section 125.03, subdivision 4. 513.22 (b) The state board of educationshallmust license 513.23 supervisory personnel as defined in section 125.03, subdivision 513.24 4. 513.25 (c) Licenses under the jurisdiction of the board of 513.26 teaching and the state board of education must be issued through 513.27 the licensing section of the departmentof children, families,513.28and learning. 513.29 Sec. 10. Minnesota Statutes 1996, section 125.05, 513.30 subdivision 1a, is amended to read: 513.31 Subd. 1a. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 513.32 (a) The board of teachingshallmust issue licenses under its 513.33 jurisdiction to persons the board finds to be qualified and 513.34 competent for their respective positions. 513.35 (b) The boardshallmust require a person to successfully 513.36 complete an examination of skills in reading, writing, and 514.1 mathematics before being granted an initial teaching license to 514.2 provide direct instruction to pupils in prekindergarten, 514.3 elementary, secondary, or special education programs. The board 514.4shallmust require colleges and universities offering a board 514.5 approved teacher preparation program to provide remedial 514.6 assistance that includes a formal diagnostic component to 514.7 persons enrolled in their institution who did not achieve a 514.8 qualifying score on the skills examination, including those for 514.9 whom English is a second language. The colleges and 514.10 universities must provide assistance in the specific academic 514.11 areas of deficiency in which the person did not achieve a 514.12 qualifying score. School districts must provide similar, 514.13 appropriate, and timely remedial assistance that includes a 514.14 formal diagnostic component and mentoring to those persons 514.15 employed by the district who completed their teacher education 514.16 program outside the state of Minnesota, received a one-year 514.17 license to teach in Minnesota and did not achieve a qualifying 514.18 score on the skills examination, including those persons for 514.19 whom English is a second language. 514.20 (c) A person who has completed an approved teacher 514.21 preparation program and obtained a one-year license to teach, 514.22 but has not successfully completed the skills examination, may 514.23 renew the one-year license for two additional one-year periods. 514.24 Each renewal of the one-year license is contingent upon the 514.25 licensee: 514.26 (1) providing evidence of participating in an approved 514.27 remedial assistance program provided by a school district or 514.28 post-secondary institution that includes a formal diagnostic 514.29 component in the specific areas in which the licensee did not 514.30 obtain qualifying scores; and 514.31 (2) attempting to successfully complete the skills 514.32 examination during the period of each one-year license. 514.33 (d) The board of teachingshallmust grant continuing 514.34 licenses only to those persons who have met board criteria for 514.35 granting a continuing license, which includes successfully 514.36 completing the skills examination in reading, writing, and 515.1 mathematics. 515.2 (e) All colleges and universities approved by the board of 515.3 teaching to prepare persons for teacher licensureshallmust 515.4 include in their teacher preparation programs a common core of 515.5 teaching knowledge and skills to be acquired by all persons 515.6 recommended for teacher licensure. This common core shall meet 515.7 the standards developed by the interstate new teacher assessment 515.8 and support consortium in its 1992 "model standards for 515.9 beginning teacher licensing and development." Amendments to 515.10 standards adopted under this paragraph are covered by chapter 14. 515.11 Sec. 11. Minnesota Statutes 1997 Supplement, section 515.12 125.05, subdivision 1c, is amended to read: 515.13 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 515.14 ETHICS.] The state board of educationshallmust issue licenses 515.15 under its jurisdiction to persons the state board finds to be 515.16 qualified and competent for their respective positions under the 515.17 rules it adopts. The state board of education may develop, by 515.18 rule, a code of ethics for supervisory personnel covering 515.19 standards of professional practices, including areas of ethical 515.20 conduct and professional performance and methods of enforcement. 515.21 Sec. 12. Minnesota Statutes 1996, section 125.05, 515.22 subdivision 6, is amended to read: 515.23 Subd. 6. [LIMITED PROVISIONAL LICENSES.] The board of 515.24 teaching may grant provisional licenses, which shall be valid 515.25 for two years, in fields in which licenses were not issued 515.26 previously or in fields in which a shortage of licensed teachers 515.27 exists. A shortageshall beis defined as a lack of or an 515.28 inadequate supply of licensed personnel within a given licensure 515.29 area in a school district that has notified the board of 515.30 teaching of the shortage and has applied to the board of 515.31 teaching for provisional licenses for that district's licensed 515.32 staff. 515.33 Sec. 13. Minnesota Statutes 1996, section 125.05, 515.34 subdivision 8, is amended to read: 515.35 Subd. 8. [BACKGROUND CHECKS.] (a) The board of teaching 515.36 and the state board of educationshallmust request a criminal 516.1 history background check from the superintendent of the bureau 516.2 of criminal apprehension on all applicants for initial licenses 516.3 under their jurisdiction. An application for a license under 516.4 this section must be accompanied by: 516.5 (1) an executed criminal history consent form, including 516.6 fingerprints; and 516.7 (2) a money order or cashier's check payable to the bureau 516.8 of criminal apprehension for the fee for conducting the criminal 516.9 history background check. 516.10 (b) The superintendent of the bureau of criminal 516.11 apprehension shall perform the background check required under 516.12 paragraph (a) by retrieving criminal history data maintained in 516.13 the criminal justice information system computers and shall also 516.14 conduct a search of the national criminal records repository, 516.15 including the criminal justice data communications network. The 516.16 superintendent is authorized to exchange fingerprints with the 516.17 Federal Bureau of Investigation for purposes of the criminal 516.18 history check. The superintendent shall recover the cost to the 516.19 bureau of a background check through the fee charged to the 516.20 applicant under paragraph (a). 516.21 (c) The board of teaching or the state board of education 516.22 may issue a license pending completion of a background check 516.23 under this subdivision, butshallmust notify the individual 516.24 that the individual's license may be revoked based on the result 516.25 of the background check. 516.26 Sec. 14. Minnesota Statutes 1996, section 125.06, is 516.27 amended to read: 516.28 125.06 [APPLICANTS TRAINED IN OTHER STATES.] 516.29 When a license to teach is authorized to be issued to any 516.30 holder of a diploma or a degree of a Minnesota state university, 516.31 or of the University of Minnesota, or of a liberal arts 516.32 university, or a technical training institution, such license 516.33 may also, in the discretion of the board of teaching or the 516.34 state board of education, whichever has jurisdiction, be issued 516.35 to any holder of a diploma or a degree of a teacher training 516.36 institution of equivalent rank and standing of any other state,. 517.1 The diploma or degree must be granted by virtue of the 517.2 completion of a course in teacher preparation essentially 517.3 equivalent in content to that required by such Minnesota state 517.4 university or the University of Minnesota or a liberal arts 517.5 university in Minnesota or a technical training institution as 517.6 preliminary to the granting of a diploma or a degree of the same 517.7 rank and class. 517.8 Sec. 15. Minnesota Statutes 1996, section 125.09, is 517.9 amended to read: 517.10 125.09 [SUSPENSION OR REVOCATION OF LICENSES.] 517.11 Subdivision 1. [GROUNDS FOR REVOCATION, SUSPENSION, OR 517.12 DENIAL.] The board of teaching or the state board of education, 517.13 whichever has jurisdiction over a teacher's licensure, may, on 517.14 the written complaint of the school board employing a teacher, a 517.15 teacher organization, or any other interested person,which517.16complaint shall specify the nature and character of the charges,517.17 refuse to issue, refuse to renew, suspend, or revoke a teacher's 517.18 license to teach for any of the following causes: 517.19 (1) Immoral character or conduct; 517.20 (2) Failure, without justifiable cause, to teach for the 517.21 term of the teacher's contract; 517.22 (3) Gross inefficiency or willful neglect of duty; or 517.23 (4) Failure to meet licensure requirements; or 517.24 (5) Fraud or misrepresentation in obtaining a license. 517.25 The written complaint must specify the nature and character 517.26 of the charges. For purposes of this subdivision, the board of 517.27 teaching is delegated the authority to suspend or revoke 517.28 coaching licenses under the jurisdiction of the state board of 517.29 education. 517.30 Subd. 4. [MANDATORY REPORTING.] A school boardshallmust 517.31 report to the board of teaching, the state board of education, 517.32 or the board of trustees of the Minnesota state colleges and 517.33 universities, whichever has jurisdiction over the teacher's 517.34 license, when its teacher is discharged or resigns from 517.35 employment after a charge is filed with the school board under 517.36 section 125.17, subdivisions 4, clauses (1), (2), and (3), and 518.1 5, or after charges are filed that are ground for discharge 518.2 under section 125.12, subdivision 8, clauses (a), (b), (c), (d), 518.3 and (e), or when a teacher is suspended or resigns while an 518.4 investigation is pending under section 125.12, subdivision 8, 518.5 clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, 518.6 clauses (1), (2), and (3), and 5; or 626.556. The report must 518.7 be made to the appropriate licensing board within ten days after 518.8 the discharge, suspension, or resignation has occurred. 518.9 The licensing board to which the report is madeshallmust 518.10 investigate the report for violation of subdivision 1 and the 518.11 reportingschoolboardshallmust cooperate in the 518.12 investigation. Notwithstanding any provision in chapter 13 or 518.13 any law to the contrary, upon written request from the licensing 518.14 board having jurisdiction over the teacher's license, aschool518.15 board or school superintendent shall provide the licensing board 518.16 with information about the teacher from theschooldistrict's 518.17 files, any termination or disciplinary proceeding, any 518.18 settlement or compromise, or any investigative file. Upon 518.19 written request from the appropriate licensing board, aschool518.20 board or school superintendent may, at the discretion of 518.21 theschoolboard or school superintendent, solicit the written 518.22 consent of a student and the student's parent to provide the 518.23 licensing board with information that may aid the licensing 518.24 board in its investigation and license proceedings. The 518.25 licensing board's request need not identify a student or parent 518.26 by name. The consent of the student and the student's parent 518.27 must meet the requirements of chapter 13 and Code of Federal 518.28 Regulations, title 34, section 99.30. The licensing board may 518.29 provide a consent form to theschooldistrict. Any data 518.30 transmitted to any board under this sectionshall beis private 518.31 data under section 13.02, subdivision 12, notwithstanding any 518.32 other classification of the data when it was in the possession 518.33 of any other agency. 518.34 The licensing board to which a report is madeshallmust 518.35 transmit to the attorney general's office any record or data it 518.36 receives under this subdivision for the sole purpose of having 519.1 the attorney general's office assist that board in its 519.2 investigation. When the attorney general's office has informed 519.3 an employee of the appropriate licensing board in writing that 519.4 grounds exist to suspend or revoke a teacher's license to teach, 519.5 that licensing board must consider suspending or revoking or 519.6 decline to suspend or revoke the teacher's license within 45 519.7 days of receiving a stipulation executed by the teacher under 519.8 investigation or a recommendation from an administrative law 519.9 judge that disciplinary action be taken. 519.10 Subd. 5. [IMMUNITY FROM LIABILITY.] A school board, its 519.11 members in their official capacity, and employees of theschool519.12 district run by the board are immune from civil or criminal 519.13 liability for reporting or cooperating as required under 519.14 subdivision 4, if their actions required under subdivision 4 are 519.15 done in good faith and with due care. 519.16 Sec. 16. Minnesota Statutes 1996, section 125.11, is 519.17 amended to read: 519.18 125.11 [RECORDING OF LICENSES; DISTRICT SUPERINTENDENT.] 519.19 No person shall be accounted a qualified teacher untilsuch519.20 the person has filed for record with the district superintendent 519.21 wheresuchthe person intends to teach a license, or certified 519.22 copythereofof a license, authorizingsuchthe person to teach 519.23 school insuchthe district school system. 519.24 Sec. 17. Minnesota Statutes 1996, section 125.12, 519.25 subdivision 1a, is amended to read: 519.26 Subd. 1a. [NONPROVISIONAL LICENSE DEFINED.] For purposes 519.27 of this section, "nonprovisional license"shall meanmeans an 519.28 entrance, continuing, or life license. 519.29 Sec. 18. Minnesota Statutes 1996, section 125.12, 519.30 subdivision 2, is amended to read: 519.31 Subd. 2. [HIRING, DISMISSING.] School boardsshallmust 519.32 hire or dismiss teachers at duly called meetings. Where a 519.33 husband and wife, brother and sister, or two brothers or 519.34 sisters, constitute a quorum, no contract employing a teacher 519.35 shall be made or authorized except upon the unanimous vote of 519.36 the full board.NoA teacher related by blood or marriage, 520.1 within the fourth degree, computed by the civil law, to a board 520.2 member shall not be employed except by a unanimous vote of the 520.3 full board. The initial employment of the teacher in the 520.4 districtshallmust be by written contract, signed by the 520.5 teacher and by the chair and clerk. All subsequent employment 520.6 of the teacher in the districtshallmust be by written 520.7 contract, signed by the teacher and by the chair and clerk, 520.8 except where there is a master agreement covering the employment 520.9 of the teacher. Contracts for teaching or supervision of 520.10 teaching can be made only with qualified teachers.NoA teacher 520.11 shall not be required to reside within the employingschool520.12 district as a condition to teaching employment or continued 520.13 teaching employment. 520.14 Sec. 19. Minnesota Statutes 1996, section 125.12, 520.15 subdivision 2a, is amended to read: 520.16 Subd. 2a. [EMPLOYMENT IN SUPERVISORY POSITIONS.] 520.17 Notwithstanding other law, a teacher, as defined in section 520.18 179A.03, does not have a right to employment in a district as an 520.19 assistant superintendent, as a principal defined in section 520.20 179A.03, as a confidential or supervisory employee defined in 520.21 section 179A.03, or in a position that is a promotion from the 520.22 position currently held, based on seniority, seniority date, or 520.23 order of employment by the district; provided that. This 520.24 provision shall not alter the reinstatement rights of an 520.25 individual who is placed on leave from an assistant 520.26 superintendent, principal or assistant principal, or supervisory 520.27 or confidential employee position pursuant to this chapter. 520.28 Sec. 20. Minnesota Statutes 1996, section 125.12, 520.29 subdivision 3, is amended to read: 520.30 Subd. 3. [PROBATIONARY PERIOD.] The first three 520.31 consecutive years of a teacher's first teaching experience in 520.32 Minnesota in a singleschooldistrictshall beis deemed to be a 520.33 probationary period of employment, and after completion thereof, 520.34 the probationary period in eachschooldistrict in which the 520.35 teacher is thereafter employed shall be one year. The school 520.36 boardshallmust adopt a plan for written evaluation of teachers 521.1 during the probationary period. Evaluationshallmust occur at 521.2 least three times each year for a teacher performing services on 521.3 120 or more school days, at least two times each year for a 521.4 teacher performing services on 60 to 119 school days, and at 521.5 least one time each year for a teacher performing services on 521.6 fewer than 60 school days. Days devoted to parent-teacher 521.7 conferences, teachers' workshops, and other staff development 521.8 opportunities and days on which a teacher is absent from 521.9 schoolshallmust not be included in determining the number of 521.10 school days on which a teacher performs services. During the 521.11 probationary period any annual contract with any teacher may or 521.12 may not be renewed as the school board shall see fit;521.13provided,. However,thattheschoolboardshallmust give 521.14 any such teacher whose contract it declines to renew for the 521.15 following school year written notice to that effect before June 521.16 1. If the teacher requests reasons for any nonrenewal of a 521.17 teaching contract, theschoolboardshallmust give the teacher 521.18 its reason in writing, including a statement that appropriate 521.19 supervision was furnished describing the nature and the extent 521.20 of such supervision furnished the teacher during the employment 521.21 by the board, within ten days after receiving such request. The 521.22 school board may, after a hearing held upon due notice, 521.23 discharge a teacher during the probationary period for cause, 521.24 effective immediately, under section 123.35, subdivision 5. 521.25 Sec. 21. Minnesota Statutes 1996, section 125.12, 521.26 subdivision 3b, is amended to read: 521.27 Subd. 3b. [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 521.28 school board and an exclusive representative of the teachers in 521.29 the districtshallmust develop a probationary teacher peer 521.30 review process through joint agreement. 521.31 Sec. 22. Minnesota Statutes 1996, section 125.12, 521.32 subdivision 4, is amended to read: 521.33 Subd. 4. [TERMINATION OF CONTRACT AFTER PROBATIONARY 521.34 PERIOD.] A teacher who has completed a probationary period in 521.35 anyschooldistrict, and who has not been discharged or advised 521.36 of a refusal to renew the teacher's contract pursuant to 522.1 subdivision 3, shall have a continuing contract with such 522.2 district. Thereafter, the teacher's contractshallmust remain 522.3 in full force and effect, except as modified by mutual consent 522.4 of the board and the teacher, until terminated by a majority 522.5 roll call vote of the full membership of the board prior to 522.6 April 1 upon one of the grounds specified in subdivision 6 or 522.7 prior to June 1 upon one of the grounds specified in subdivision 522.8 6a or 6b, or until the teacher is discharged pursuant to 522.9 subdivision 8, or by the written resignation of the teacher 522.10 submitted prior to April 1; provided, however, that. If an 522.11 agreement as to the terms and conditions of employment for the 522.12 succeeding school year has not been adopted pursuant to the 522.13 provisions of sections 179A.01 to 179A.25 prior to March 1, the 522.14 teacher's right of resignationshall beis extended to the 30th 522.15 calendar day following the adoption of said contract in 522.16 compliance with section 179A.20, subdivision 5. Such written 522.17 resignation by the teachershall beis effective as of June 30 522.18 if submitted prior to that date and the teachers' right of 522.19 resignation for the school year then beginning shall cease on 522.20 July 15. Before a teacher's contract is terminated by the 522.21 board, the boardshallmust notify the teacher in writing and 522.22 state its ground for the proposed termination in reasonable 522.23 detail together with a statement that the teacher may make a 522.24 written request for a hearing before the board within 14 days 522.25 after receipt of such notification. If the grounds are those 522.26 specified in subdivision 6 or 8, the notice must also state a 522.27 teacher may request arbitration under subdivision 9a. Within 14 522.28 days after receipt of this notification the teacher may make a 522.29 written request for a hearing before the board or an arbitrator 522.30 and it shall be granted upon reasonable notice to the teacher of 522.31 the date set for hearing, before final action is taken. If no 522.32 hearing is requested within such period, it shall be deemed 522.33 acquiescence by the teacher to the board's action. Such 522.34 termination shall take effect at the close of the school year in 522.35 which the contract is terminated in the manner aforesaid. Such 522.36 contract may be terminated at any time by mutual consent of the 523.1 board and the teacher and this sectionshalldoes not affect the 523.2 powers of a board to suspend, discharge, or demote a teacher 523.3 under and pursuant to other provisions of law. 523.4 Sec. 23. Minnesota Statutes 1996, section 125.12, 523.5 subdivision 6, is amended to read: 523.6 Subd. 6. [GROUNDS FOR TERMINATION.] A continuing contract 523.7 may be terminated, effective at the close of the school year, 523.8 upon any of the following grounds: 523.9 (a) Inefficiency; 523.10 (b) Neglect of duty, or persistent violation of school 523.11 laws, rules, regulations, or directives; 523.12 (c) Conduct unbecoming a teacher which materially impairs 523.13 the teacher's educational effectiveness; 523.14 (d) Other good and sufficient grounds rendering the teacher 523.15 unfit to perform the teacher's duties. 523.16 A contractshallmust not be terminated upon one of the 523.17 grounds specified in clause (a), (b), (c), or (d), unless the 523.18 teachershall have failedfails to correct the deficiency after 523.19 being given written notice of the specific items of complaint 523.20 and reasonable time within which to remedy them. 523.21 Sec. 24. Minnesota Statutes 1996, section 125.12, 523.22 subdivision 6a, is amended to read: 523.23 Subd. 6a. [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 523.24 school board and the exclusive bargaining representative of the 523.25 teachers may negotiate a plan providing for unrequested leave of 523.26 absence without pay or fringe benefits for as many teachers as 523.27 may be necessary because of discontinuance of position, lack of 523.28 pupils, financial limitations, or merger of classes caused by 523.29 consolidation of districts. Failing to successfully negotiate 523.30 such a plan, the provisions of subdivision 6b shall apply. The 523.31 negotiated planshallmust not include provisions which would 523.32 result in the exercise of seniority by a teacher holding a 523.33 provisional license, other than a vocational education license, 523.34 contrary to the provisions of subdivision 6b, clause (c), or the 523.35 reinstatement of a teacher holding a provisional license, other 523.36 than a vocational education license, contrary to the provisions 524.1 of subdivision 6b, clause (e). The provisions of section 524.2 179A.16shalldo not apply for the purposes of this subdivision. 524.3 Sec. 25. Minnesota Statutes 1996, section 125.12, 524.4 subdivision 6b, is amended to read: 524.5 Subd. 6b. [UNREQUESTED LEAVE OF ABSENCE.] Theschoolboard 524.6 may place on unrequested leave of absence, without pay or fringe 524.7 benefits, as many teachers as may be necessary because of 524.8 discontinuance of position, lack of pupils, financial 524.9 limitations, or merger of classes caused by consolidation of 524.10 districts. The unrequested leaveshall beis effective at the 524.11 close of the school year. In placing teachers on unrequested 524.12 leave, the boardshall beis governed by the following 524.13 provisions: 524.14 (a) The board may place probationary teachers on 524.15 unrequested leave first in the inverse order of their 524.16 employment.NoA teacher who has acquired continuing contract 524.17 rightsshallmust not be placed on unrequested leave of absence 524.18 while probationary teachers are retained in positions for which 524.19 the teacher who has acquired continuing contract rights is 524.20 licensed; 524.21 (b) Teachers who have acquired continuing contract rights 524.22 shall be placed on unrequested leave of absence in fields in 524.23 which they are licensed in the inverse order in which they were 524.24 employed by the school district. In the case of equal 524.25 seniority, the order in which teachers who have acquired 524.26 continuing contract rights shall be placed on unrequested leave 524.27 of absence in fields in which they are licensedshall beis 524.28 negotiable; 524.29 (c) Notwithstanding the provisions of clause (b),noa 524.30 teachershall beis not entitled to exercise any seniority when 524.31 that exercise results in that teacher being retained by the 524.32 district in a field for which the teacher holds only a 524.33 provisional license, as defined by the board of teaching, unless 524.34 that exercise of seniority results in the placement on 524.35 unrequested leave of absence of another teacher who also holds a 524.36 provisional license in the same field. The provisions of this 525.1 clauseshalldo not apply to vocational education licenses; 525.2 (d) Notwithstanding clauses (a), (b) and (c), if the 525.3 placing of a probationary teacher on unrequested leave before a 525.4 teacher who has acquired continuing rights, the placing of a 525.5 teacher who has acquired continuing contract rights on 525.6 unrequested leave before another teacher who has acquired 525.7 continuing contract rights but who has greater seniority, or the 525.8 restriction imposed by the provisions of clause (c) would place 525.9 the district in violation of its affirmative action program, the 525.10 district may retain the probationary teacher, the teacher with 525.11 less seniority, or the provisionally licensed teacher; 525.12 (e) Teachers placed on unrequested leave of absenceshall525.13 must be reinstated to the positions from which they have been 525.14 given leaves of absence or, if not available, to other available 525.15 positions in the school district in fields in which they are 525.16 licensed. Reinstatementshallmust be in the inverse order of 525.17 placement on leave of absence.NoA teachershallmust not be 525.18 reinstated to a position in a field in which the teacher holds 525.19 only a provisional license, other than a vocational education 525.20 license, while another teacher who holds a nonprovisional 525.21 license in the same field remains on unrequested leave. The 525.22 order of reinstatement of teachers who have equal seniority and 525.23 who are placed on unrequested leave in the same school 525.24 yearshall beis negotiable; 525.25 (f)NoAppointment of a new teachershallmust not be made 525.26 while there is available, on unrequested leave, a teacher who is 525.27 properly licensed to fill such vacancy, unless the teacher fails 525.28 to advise the school board within 30 days of the date of 525.29 notification that a position is available to that teacher who 525.30 may return to employment and assume the duties of the position 525.31 to which appointed on a future date determined by the board; 525.32 (g) A teacher placed on unrequested leave of absence may 525.33 engage in teaching or any other occupation during the period of 525.34 this leave; 525.35 (h) The unrequested leave of absenceshallmust not impair 525.36 the continuing contract rights of a teacher or result in a loss 526.1 of credit for previous years of service; 526.2 (i) The unrequested leave of absence of a teacher who is 526.3 placed on unrequested leave of absence and who is not reinstated 526.4 shall continue for a period of five years, after which the right 526.5 to reinstatement shall terminate; provided. The teacher's right 526.6 to reinstatement shall also terminate if the teacher fails to 526.7 file with the board by April 1 of any year a written statement 526.8 requesting reinstatement; 526.9 (j) The same provisions applicable to terminations of 526.10 probationary or continuing contracts in subdivisions 3 and 4 526.11shallmust apply to placement on unrequested leave of absence; 526.12 (k) Nothing in this subdivision shall be construed to 526.13 impair the rights of teachers placed on unrequested leave of 526.14 absence to receive reemployment insurance if otherwise eligible. 526.15 Sec. 26. Minnesota Statutes 1996, section 125.12, 526.16 subdivision 7, is amended to read: 526.17 Subd. 7. [SUSPENSION AND LEAVE OF ABSENCE FOR HEALTH 526.18 REASONS.] Affliction with active tuberculosis or other 526.19 communicable disease, mental illness, drug or alcoholic 526.20 addiction, or other serious incapacity shall be grounds for 526.21 temporary suspension and leave of absence while the teacher is 526.22 suffering from such disability. Unless the teacher consents, 526.23 such actionshallmust be taken only upon evidence that 526.24 suspension is required from a physician who has examined the 526.25 teacher. The physicianshallmust be competent in the field 526.26 involved andshallmust be selected by the teacher from a list 526.27 of three provided by the school board, and the examinationshall526.28 must be at the expense of the school district. A copy of the 526.29 report of the physician shall be furnished the teacher upon 526.30 request. If the teacher fails to submit to the examination 526.31 within the prescribed time, the board may discharge the teacher, 526.32 effective immediately. In the event of mental illness, if the 526.33 teacher submits to such an examination and the examining 526.34 physician's or psychiatrist's statement is unacceptable to the 526.35 teacher or the board, a panel of three physicians or 526.36 psychiatristsshallmust be selected to examine the teacher at 527.1 the board's expense. The board and the teacher shall each 527.2 select a member of this panel, and these two members shall 527.3 select a third member. The panelshallmust examine the teacher 527.4 and submit a statement of its findings and conclusions to the 527.5 board. Upon receipt and consideration of the statement from the 527.6 panel the board may suspend the teacher. The boardshallmust 527.7 notify the teacher in writing of such suspension and the reasons 527.8 therefor. During the leave of absence, the district must pay 527.9 the teachershall be paidsick leave benefitsby the districtup 527.10 to the amount of unused accumulated sick leave, and after it is 527.11 exhausted, the district may in its discretion pay additional 527.12 benefits. The teachershallmust be reinstated to the teacher's 527.13 position upon evidence from such a physician of sufficient 527.14 recovery to be capable of resuming performance of duties in a 527.15 proper manner. In the event that the teacher does not qualify 527.16 for reinstatement within 12 months after the date of suspension, 527.17 the continuing disability may be a ground for discharge under 527.18 subdivision 8. 527.19 Sec. 27. Minnesota Statutes 1996, section 125.12, 527.20 subdivision 8, is amended to read: 527.21 Subd. 8. [IMMEDIATE DISCHARGE.] Aschoolboard may 527.22 discharge a continuing-contract teacher, effective immediately, 527.23 upon any of the following grounds: 527.24 (a) Immoral conduct, insubordination, or conviction of a 527.25 felony; 527.26 (b) Conduct unbecoming a teacher which requires the 527.27 immediate removal of the teacher from classroom or other duties; 527.28 (c) Failure without justifiable cause to teach without 527.29 first securing the written release of the school board; 527.30 (d) Gross inefficiency which the teacher has failed to 527.31 correct after reasonable written notice; 527.32 (e) Willful neglect of duty; or 527.33 (f) Continuing physical or mental disability subsequent to 527.34 a 12 months leave of absence and inability to qualify for 527.35 reinstatement in accordance with subdivision 7. 527.36 For purposes of this subdivision, conduct unbecoming a 528.1 teacher includes an unfair discriminatory practice described in 528.2 section 363.03, subdivision 5. 528.3 Prior to discharging a teacher the boardshallmust notify 528.4 the teacher in writing and state its ground for the proposed 528.5 discharge in reasonable detail. Within ten days after receipt 528.6 of this notification the teacher may make a written request for 528.7 a hearing before the board and it shall be granted before final 528.8 action is taken. The board may, however, suspend a teacher with 528.9 pay pending the conclusion of such hearing and determination of 528.10 the issues raisedthereinin the hearing after charges have been 528.11 filed which constitute ground for discharge. 528.12 Sec. 28. Minnesota Statutes 1996, section 125.12, 528.13 subdivision 9, is amended to read: 528.14 Subd. 9. [HEARING PROCEDURES.] Any hearing held pursuant 528.15 to this sectionshallmust be held upon appropriate and timely 528.16 notice to the teacher, and any hearing held pursuant to 528.17 subdivision 6 or 8shallmust be private or public at the 528.18 discretion of the teacher. A hearing held pursuant to 528.19 subdivision 6bshallmust be public and may be consolidated by 528.20 the school board. At the hearing, the board and the teacher may 528.21 each be represented by counsel at each party's own expense, and 528.22 such counsel may examine and cross-examine witnesses and present 528.23 arguments. The boardshallmust first present evidence to 528.24 sustain the grounds for termination or discharge and then 528.25 receive evidence presented by the teacher. Each party may then 528.26 present rebuttal evidence. Dismissal of the teachershallmust 528.27 be based upon substantial and competent evidence in the record. 528.28 All witnesses shall be sworn upon oath administered by the 528.29 presiding officer of the board. The clerk of the board shall 528.30 issue subpoenas for witnesses or the production of records 528.31 pertinent to the grounds upon the request of either the board or 528.32 the teacher. The boardshallmust employ a court reporter to 528.33 record the proceedings at the hearing, and either party may 528.34 obtain a transcriptthereofof the hearing at its own expense. 528.35 Sec. 29. Minnesota Statutes 1996, section 125.12, 528.36 subdivision 9a, is amended to read: 529.1 Subd. 9a. [HEARING AND DETERMINATION BY ARBITRATOR.] A 529.2 teacher whose termination is proposed under subdivision 4 on 529.3 grounds specified in subdivision 6, or whose discharge is 529.4 proposed under subdivision 8, may elect a hearing before an 529.5 arbitrator instead of the school board. The hearing is governed 529.6 by this subdivision. 529.7 (a) The teacher must make a written request for a hearing 529.8 before an arbitrator within 14 days after receiving notification 529.9 of proposed termination on grounds specified in subdivision 6 or 529.10 within ten days of receiving notification of proposed discharge 529.11 under subdivision 8. If a request for a hearing does not 529.12 specify that the hearing be before an arbitrator, itshall beis 529.13 considered to be a request for a hearing before the school board. 529.14 (b) If the teacher and the school board are unable to 529.15 mutually agree on an arbitrator, theschoolboardshallmust 529.16 request from the bureau of mediation services a list of five 529.17 persons to serve as an arbitrator. If the matter to be heard is 529.18 a proposed termination on grounds specified in subdivision 6, 529.19 arbitrators on the list must be available to hear the matter and 529.20 make a decision within a time frame that will allow theschool529.21 board to comply with all statutory timelines relating to 529.22 termination. If the teacher and theschoolboard are unable to 529.23 mutually agree on an arbitrator from the list provided, the 529.24 parties shall alternately strike names from the list until the 529.25 name of one arbitrator remains. The person remaining after the 529.26 striking procedureshallmust be the arbitrator. If the parties 529.27 are unable to agree on who shall strike the first name, the 529.28 question must be decided by a flip of a coin. The teacher and 529.29 the school boardshallmust share equally the costs and fees of 529.30 the arbitrator. 529.31 (c) The arbitrator shall determine, by a preponderance of 529.32 the evidence, whether the grounds for termination or discharge 529.33 specified in subdivision 6 or 8 exist to support the proposed 529.34 termination or discharge. A lesser penalty than termination or 529.35 discharge may be imposed by the arbitrator only to the extent 529.36 that either party proposes such lesser penalty in the 530.1 proceeding. In making the determination, the arbitration 530.2 proceeding is governed by sections 572.11 to 572.17 and by the 530.3 collective bargaining agreement applicable to the teacher. 530.4 (d) An arbitration hearing conducted under this subdivision 530.5 is a meeting for preliminary consideration of allegations or 530.6 charges within the meaning of section 471.705, subdivision 1d, 530.7 clause (c), andshallmust be closed, unless the teacher 530.8 requests it to be open. 530.9 (e) The arbitrator's award is final and binding on the 530.10 parties, subject to sections 572.18 to 572.26. 530.11 Sec. 30. Minnesota Statutes 1996, section 125.12, 530.12 subdivision 10, is amended to read: 530.13 Subd. 10. [DECISION.] After the hearing, the board 530.14shallmust issue a written decision and order. If the board 530.15 orders termination of a continuing contract or discharge of a 530.16 teacher, its decisionshallmust include findings of fact based 530.17 upon competent evidence in the record andshallmust be served 530.18 on the teacher, accompanied by an order of termination or 530.19 discharge, prior to April 1 in the case of a contract 530.20 termination for grounds specified in subdivision 6, prior to 530.21 June 1 for grounds specified in subdivision 6a or 6b, or within 530.22 ten days after conclusion of the hearing in the case of a 530.23 discharge. If the decision of the board or of a reviewing court 530.24 is favorable to the teacher, the proceedingsshallmust be 530.25 dismissed and the decision entered in the board minutes, and all 530.26 references to such proceedingsshallmust be excluded from the 530.27 teacher's record file. 530.28 Sec. 31. Minnesota Statutes 1996, section 125.12, 530.29 subdivision 11, is amended to read: 530.30 Subd. 11. [JUDICIAL REVIEW.] The pendency of judicial 530.31 proceedingsshallmust not be ground for postponement of the 530.32 effective date of theschoolboard's order, but if judicial 530.33 review eventuates in reinstatement of the teacher, the board 530.34shallmust pay the teacher all compensation withheld as a result 530.35 of the termination or dismissal order. 530.36 Sec. 32. Minnesota Statutes 1996, section 125.12, 531.1 subdivision 13, is amended to read: 531.2 Subd. 13. [EXCEPTION.] This sectionshalldoes not apply 531.3 to any district in a city of the first class. 531.4 Sec. 33. Minnesota Statutes 1997 Supplement, section 531.5 125.12, subdivision 14, is amended to read: 531.6 Subd. 14. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 531.7 EXPUNGEMENT.] All evaluations and files generated within a 531.8 school district relating to each individual teachershallmust 531.9 be available to each individual teacher upon written request. 531.10 Effective January 1, 1976, all evaluations and files, wherever 531.11 generated, relating to each individual teachershallmust be 531.12 available to each individual teacher upon written request. The 531.13 teacher shall have the right to reproduce any of the contents of 531.14 the files at the teacher's expense and to submit for inclusion 531.15 in the file written information in response to any material 531.16 contained therein. 531.17 Aschooldistrict may destroy the files as provided by law 531.18 andshallmust expunge from the teacher's file any material 531.19 found to be false or inaccurate through the grievance procedure 531.20 required pursuant to section 179A.20, subdivision 4; provided,. 531.21 The grievance procedure promulgated by the director of the 531.22 bureau of mediation services, pursuant to section 179A.04, 531.23 subdivision 3, clause (h),shall applyapplies to those 531.24 principals and supervisory employees not included in an 531.25 appropriate unit as defined in section 179A.03. Expungement 531.26 proceedingsshallmust be commenced within the time period 531.27 provided in the collective bargaining agreement for the 531.28 commencement of a grievance. If no time period is provided in 531.29 the bargaining agreement, the expungement proceedingsshallmust 531.30 commence within 15 days after the teacher has knowledge of the 531.31 inclusion in the teacher's file of the material the teacher 531.32 seeks to have expunged. 531.33 Sec. 34. Minnesota Statutes 1996, section 125.121, 531.34 subdivision 1, is amended to read: 531.35 Subdivision 1. [TERMINATION; HEARING.] Before a district 531.36 terminates the coaching duties of an employee who is required to 532.1 hold a license as an athletic coach from the state board of 532.2 education, the districtshallmust notify the employee in 532.3 writing and state its reason for the proposed termination. 532.4 Within 14 days of receiving this notification, the employee may 532.5 request in writing a hearing on the termination before the 532.6 board. If a hearing is requested, the boardshallmust hold a 532.7 hearing within 25 days according to the hearing procedures 532.8 specified in section 125.12, subdivision 9, and the 532.9 terminationshall not beis finalexceptupon the order of the 532.10 board after the hearing. 532.11 Sec. 35. Minnesota Statutes 1996, section 125.121, 532.12 subdivision 2, is amended to read: 532.13 Subd. 2. [FINAL DECISION.] Within ten days after the 532.14 hearing, the boardshallmust issue a written decision regarding 532.15 the termination. If the board decides to terminate the 532.16 employee's coaching duties, the decisionshallmust state the 532.17 reason on which it is based and include findings of fact based 532.18 upon competent evidence in the record. The board may terminate 532.19 the employee's duties or not, as it sees fit, for any reason 532.20 which is found to be true based on substantial and competent 532.21 evidence in the record. 532.22 Sec. 36. Minnesota Statutes 1996, section 125.135, is 532.23 amended to read: 532.24 125.135 [STAFF EXCHANGE PROGRAM.] 532.25 Subdivision 1. [ESTABLISHMENT.] A staff exchange program 532.26 is established to allow localschooldistricts to arrange 532.27 temporary and voluntary exchanges among members of their 532.28 kindergarten through grade 12 instructional and administrative 532.29 staffs. The purpose of the program is to provide participants 532.30 with an understanding of the educational concerns of other local 532.31 school districts, including concerns of class organization, 532.32 curriculum development, instructional practices, and 532.33 characteristics of the student population. 532.34 The educational needs and interests of the hostschool532.35 district and the training, experience, and interests of the 532.36 participants must determine the assignments of the participants 533.1 in the host district. Participants may teach courses, provide 533.2 counseling and tutorial services, work with teachers to better 533.3 prepare students for future educational experiences, serve an 533.4 underserved population in the district, or assist with 533.5 administrative functions. The assignments participants perform 533.6 for the host district must be comparable to the assignments the 533.7 participants perform for the district employing the 533.8 participants. Participation in the exchange program need not be 533.9 limited to one school or one school district and may involve 533.10 other education organizations including education districts and 533.11 SCs. 533.12 Subd. 2. [PROGRAM REQUIREMENTS.] All staff exchanges made 533.13 under this section are subject to the requirements in this 533.14 subdivision. 533.15 (a) A school district employing a participating staff 533.16 member must not adversely affect the staff member's salary, 533.17 seniority, or other employment benefits, or otherwise penalize 533.18 the staff member for participating in the program. 533.19 (b) Upon completion or termination of an exchange, aschool533.20 district employing a participating staff member must permit the 533.21 staff member to return to the same assignment the staff member 533.22 performed in the district before the exchange, if available, or, 533.23 if not, a similar assignment. 533.24 (c) Aschooldistrict employing a participating staff 533.25 member must continue to provide the staff member's salary and 533.26 other employment benefits during the period of the exchange. 533.27 (d) A participant must be licensed and tenured. 533.28 (e) Participation in the program must be voluntary. 533.29 (f) The length of participation in the program must be no 533.30 less than one-half of a school year and no more than one school 533.31 year, and any premature termination of participation must be 533.32 upon the mutual agreement of the participant and the 533.33 participatingschooldistrict. 533.34 (g) A participant is responsible for transportation to and 533.35 from the hostschooldistrict. 533.36 (h) This subdivision does not abrogate or change rights of 534.1 staff members participating in the staff exchange program or the 534.2 terms of an agreement between the exclusive representative of 534.3 the school district employees and theschooldistrict. 534.4 (i) Participatingschooldistricts may enter into 534.5 supplementary agreements with the exclusive representative of 534.6 the school district employees to accomplish the purpose of this 534.7 section. 534.8 Subd. 3. [APPLICATION PROCEDURES.] The school board of 534.9 aschooldistrict must decide by resolution to participate in 534.10 the staff exchange program. A staff member wishing to 534.11 participate in the exchange program must submit an application 534.12 to the school district employing the staff member. The district 534.13 must, in a timely and appropriate manner, provide to the 534.14 exclusive bargaining representatives of teachers in the state 534.15 the number and names of prospective participants within the 534.16 district, the assignments available within the district, and the 534.17 length of time for each exchange. The exclusive bargaining 534.18 representatives are requested to cooperatively participate in 534.19 the coordination of exchanges to facilitate exchanges across all 534.20 geographical regions of the state. Prospective participants 534.21 must contact teachers and districts with whom they are 534.22 interested in making an exchange. The prospective participants 534.23 must make all arrangements to accomplish their exchange and the 534.24 superintendents of the participating districts must approve the 534.25 arrangements for the exchange in writing. 534.26 Sec. 37. Minnesota Statutes 1996, section 125.138, 534.27 subdivision 1, is amended to read: 534.28 Subdivision 1. [ESTABLISHMENT.] A program of faculty 534.29 collaborationshall beis established to allow Minnesota school 534.30 districts and post-secondary institutions to arrange temporary 534.31 placements in each other's institutions. These arrangements 534.32 must be made on a voluntary cooperative basis between a school 534.33 district and post-secondary institution, or between 534.34 post-secondary institutions. Exchanges between post-secondary 534.35 institutions may occur among campuses in the same system or in 534.36 different systems. 535.1 Sec. 38. Minnesota Statutes 1996, section 125.138, 535.2 subdivision 3, is amended to read: 535.3 Subd. 3. [SALARIES; BENEFITS; CERTIFICATION.] Temporary 535.4 placements made under the program must not have a negative 535.5 effect on participants' salaries, seniority, or other benefits. 535.6 Notwithstanding sections 123.35, subdivision 6, and 125.04, a 535.7 member of the staff of a post-secondary institution may teach in 535.8 an elementary or secondary school or perform a service, agreed 535.9 upon according to this section, for which a license would 535.10 otherwise be required without holding the applicable license. 535.11 In addition, a licensed educator employed by a school district 535.12 may teach or perform a service, agreed upon according to this 535.13 section, at a post-secondary institution without meeting the 535.14 applicable qualifications of the post-secondary institution. 535.15 Aschooldistrict is not subject to section 124.19, subdivision 535.16 3, as a result of entering into an agreement according to this 535.17 section that enables a post-secondary educator to teach or 535.18 provide services in the district. All arrangements and details 535.19 regarding the exchange must be mutually agreed to by each 535.20 participating school district and post-secondary institution 535.21 before implementation. 535.22 Sec. 39. Minnesota Statutes 1996, section 125.138, 535.23 subdivision 4, is amended to read: 535.24 Subd. 4. [EDUCATORS' EMPLOYMENT; CONTINUATION.] An 535.25 educator who held a temporary position or an exchanged position 535.26 under this sectionshallmust be continued in or restored to the 535.27 position previously held, or to a position of like seniority, 535.28 status, and pay upon return. Retirement benefits under an 535.29 employer-sponsored pension or retirement planshallmust not be 535.30 reduced because of time spent on an exchange or temporary 535.31 position under section 125.138. 535.32 Sec. 40. Minnesota Statutes 1996, section 125.138, 535.33 subdivision 5, is amended to read: 535.34 Subd. 5. [ENTITLEMENT TO BENEFITS AND POSITION.] An 535.35 educator who is continued in or restored to a position in 535.36 accordance with subdivision 4: 536.1 (1)shallmust be continued or restored without loss of 536.2 seniority; and 536.3 (2) may participate in insurance or other benefits offered 536.4 by the employer under its established rules and practices. 536.5 Sec. 41. Minnesota Statutes 1996, section 125.16, is 536.6 amended to read: 536.7 125.16 [TEACHERS' REPORTS.] 536.8NoAn ordershallmust not be issued for the payment of the 536.9 wages of any teacher while the teacher is in default in making 536.10 reports or in returning the teacher's register. The teachers, 536.11 principals, and superintendents shall make such reports as may 536.12 be required by law or the rules of the state or local board 536.13 under like penalty. 536.14 Sec. 42. Minnesota Statutes 1996, section 125.17, 536.15 subdivision 2b, is amended to read: 536.16 Subd. 2b. [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 536.17schoolboard and an exclusive representative of the teachers in 536.18 the districtshallmust develop a probationary teacher peer 536.19 review process through joint agreement. 536.20 Sec. 43. Minnesota Statutes 1996, section 125.17, 536.21 subdivision 3, is amended to read: 536.22 Subd. 3. [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 536.23 DISCHARGE OR DEMOTION.] After the completion of such 536.24 probationary period, without discharge, such teachers as are 536.25 thereupon reemployed shall continue in service and hold their 536.26 respective position during good behavior and efficient and 536.27 competent service andshallmust not be discharged or demoted 536.28 except for cause after a hearing. 536.29AnyA probationary teachershall beis deemed to have been 536.30 reemployed for the ensuing school year, unless the school board 536.31 in charge of such schoolshall givegave such teacher notice in 536.32 writing before June 1 of the termination of such employment. In 536.33 event of such notice the employmentshall terminateterminates 536.34 at the close of the school sessions of the current school year. 536.35 Sec. 44. Minnesota Statutes 1996, section 125.17, 536.36 subdivision 3b, is amended to read: 537.1 Subd. 3b. [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] 537.2 A school board and an exclusive representative of the teachers 537.3 in the districtshallmust develop a peer review process for 537.4 nonprobationary teachers through joint agreement. 537.5 Sec. 45. Minnesota Statutes 1996, section 125.17, 537.6 subdivision 4, is amended to read: 537.7 Subd. 4. [GROUNDS FOR DISCHARGE OR DEMOTION.] Causes for 537.8 the discharge or demotion of a teacher either during or after 537.9 the probationary periodshallmust be: 537.10 (1) Immoral character, conduct unbecoming a teacher, or 537.11 insubordination; 537.12 (2) Failure without justifiable cause to teach without 537.13 first securing the written release of the school board having 537.14 the care, management, or control of the school in which the 537.15 teacher is employed; 537.16 (3) Inefficiency in teaching or in the management of a 537.17 school; 537.18 (4) Affliction with active tuberculosis or other 537.19 communicable diseaseshallmust be considered as cause for 537.20 removal or suspension while the teacher is suffering from such 537.21 disability; or 537.22 (5) Discontinuance of position or lack of pupils. 537.23 For purposes of this subdivision, conduct unbecoming a 537.24 teacher includes an unfair discriminatory practice described in 537.25 section 363.03, subdivision 5. 537.26 Sec. 46. Minnesota Statutes 1996, section 125.17, 537.27 subdivision 5, is amended to read: 537.28 Subd. 5. [HEARING OF CHARGES AGAINST TEACHER.] The charges 537.29 against a teachershallmust be in writing and signed by the 537.30 person making the same and then filed with the secretary or 537.31 clerk of the school board having charge of the school in which 537.32 the teacher is employed.SuchThe school board, before 537.33 discharging or demoting a teacher,shallmust then accord the 537.34 teacher against whomsuchcharges have been filed a full hearing 537.35 and give to the teacher at least ten days' notice in writing of 537.36 the time and place of such hearing; such. The notice may be 538.1 served personally or sent by certified mail addressed tosuch538.2 the teacher at the teacher's last known post office address;538.3provided, that. If the chargebeis made byanya person 538.4 notin connectionconnected with the school system the charge 538.5 may be disregarded bysuchthe school board. If the grounds are 538.6 those specified in subdivision 4, clause (1), (2), (3), or (4), 538.7 the notice must also state a teacher may request arbitration 538.8 under subdivision 10a.Upon such hearing being held suchAt the 538.9 hearing, the school board oranarbitrator shall hear all 538.10 evidence that may be adduced in support of the charges and for 538.11 the teacher's defensetheretoto the charges. Either 538.12 partyshall havehas the right to have a written record of the 538.13 hearing at the expense of the board and to have witnesses 538.14 subpoenaed and all witnesses so subpoenaedshallmust be 538.15 examined under oath. Any member of the school board conducting 538.16 such a hearingshall havehas authority to issue subpoenas and 538.17 to administer oaths to witnesses. 538.18 Sec. 47. Minnesota Statutes 1996, section 125.17, 538.19 subdivision 6, is amended to read: 538.20 Subd. 6. [COUNSEL; EXAMINATION OF WITNESSES.] Each party 538.21 appearing before the school boardshall havehas the right to be 538.22 represented by counsel, and such counsel may examine and 538.23 cross-examine witnesses and present arguments. 538.24 Sec. 48. Minnesota Statutes 1996, section 125.17, 538.25 subdivision 7, is amended to read: 538.26 Subd. 7. [HEARINGS.] All hearings before the school 538.27 boardshallmust be private or may be public at the decision of 538.28 the teacher against whom such charges have been filed. 538.29 Sec. 49. Minnesota Statutes 1996, section 125.17, 538.30 subdivision 8, is amended to read: 538.31 Subd. 8. [DECISION, WHEN RENDERED.]SuchThe hearing must 538.32 be concluded and a decision in writing, stating the grounds on 538.33 which it is based, rendered within 25 days after giving of such 538.34 notice. Where the hearing is before a school board the teacher 538.35 may be discharged or demoted upon the affirmative vote of a 538.36 majority of the members of theschoolboard. If the charges, or 539.1 any of such, are found to be true, theschoolboard conducting 539.2 the hearingshallmust discharge, demote, or suspend the 539.3 teacher, as seems to be for the best interest of the school.No539.4 A teachershallmust not be discharged for either of the causes 539.5 specified in subdivision 4, clause (3), except during the school 539.6 year, and then only upon charges filed at least four months 539.7 before the close of the school sessions of such school year. 539.8 Sec. 50. Minnesota Statutes 1996, section 125.17, 539.9 subdivision 9, is amended to read: 539.10 Subd. 9. [CHARGES EXPUNGED FROM RECORDS.] In all cases 539.11 where the final decision is in favor of the teacher the charge 539.12 or chargesshallmust be physically expunged from the records. 539.13 Sec. 51. Minnesota Statutes 1996, section 125.17, 539.14 subdivision 10, is amended to read: 539.15 Subd. 10. [SUSPENSION PENDING HEARING; SALARY.]Upon the539.16filing of chargesAfter charges are filed against a teacher, the 539.17 school board may suspend the teacher from regular duty. If,539.18upon final decision,the teacher is suspended or removed after 539.19 the final decision, theschoolboard may in its discretion 539.20 determine the teacher's salary or compensation as of the time of 539.21 filing the charges. If the final decision is favorable to the 539.22 teacherthere shall be no abatement of, the board must not abate 539.23 the teacher's salary or compensation. 539.24 Sec. 52. Minnesota Statutes 1996, section 125.17, 539.25 subdivision 10a, is amended to read: 539.26 Subd. 10a. [HEARING AND DETERMINATION BY ARBITRATOR.] A 539.27 teacher against whom charges have been filed alleging any cause 539.28 for discharge or demotion specified in subdivision 4, clause 539.29 (1), (2), (3), or (4), may elect a hearing before an arbitrator 539.30 instead of the school board. The hearing is governed by this 539.31 subdivision. 539.32 (a) The teacher must make a written request for a hearing 539.33 before an arbitrator within ten days after receiving a written 539.34 notice of the filing of charges required by subdivision 5. 539.35 Failure to request a hearing before an arbitrator during this 539.36 period is considered acquiescence to a hearing before the board. 540.1 (b) If the teacher and the school board are unable to 540.2 mutually agree on an arbitrator, theschoolboardshallmust 540.3 request from the bureau of mediation services a list of five 540.4 persons to serve as an arbitrator. If the teacher and the 540.5 school board are unable to mutually agree on an arbitrator from 540.6 the list provided, the parties shall alternately strike names 540.7 from the list until the name of one arbitrator remains. The 540.8 person remaining after the striking procedureshallmust be the 540.9 arbitrator. If the parties are unable to agree on who shall 540.10 strike the first name, the question must be decided by a flip of 540.11 a coin. The teacher and theschoolboardshallmust share 540.12 equally the costs and fees of the arbitrator. 540.13 (c) The arbitrator shall determine, by a preponderance of 540.14 the evidence, whether the causes specified in subdivision 4, 540.15 clause (1), (2), (3), or (4), exist to support the proposed 540.16 discharge or demotion. A lesser penalty than discharge or 540.17 demotion may be imposed by the arbitrator only to the extent 540.18 that either party proposes such lesser penalty in the 540.19 proceeding. In making the determination, the arbitration 540.20 proceeding is governed by sections 572.11 to 572.17 and by the 540.21 collective bargaining agreement applicable to the teacher. 540.22 (d) An arbitration hearing conducted under this subdivision 540.23 is a meeting for preliminary consideration of allegations or 540.24 charges within the meaning of section 471.705, subdivision 1d, 540.25 clause (c), andshallmust be closed, unless the teacher 540.26 requests it to be open. 540.27 (e) The arbitrator's decision is final and binding on the 540.28 parties, subject to sections 572.18 to 572.26. 540.29 Sec. 53. Minnesota Statutes 1996, section 125.17, 540.30 subdivision 11, is amended to read: 540.31 Subd. 11. [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 540.32 OF PUPILS; PREFERENCE GIVEN.] (a)AnyA teacher whose services 540.33 are terminated on account of discontinuance of position or lack 540.34 of pupilsshallmust receive first consideration for other 540.35 positions in the district for which that teacher is qualified. 540.36 In the event it becomes necessary to discontinue one or more 541.1 positions, in making such discontinuance, teachersshallmust be 541.2 discontinued in any department in the inverse order in which 541.3 they were employed. 541.4 (b) Notwithstanding the provisions of clause (a),noa 541.5 teachershall beis not entitled to exercise any seniority when 541.6 that exercise results in that teacher being retained by the 541.7 district in a field for which the teacher holds only a 541.8 provisional license, as defined by the board of teaching, unless 541.9 that exercise of seniority results in the termination of 541.10 services, on account of discontinuance of position or lack of 541.11 pupils, of another teacher who also holds a provisional license 541.12 in the same field. The provisions of this clauseshalldo not 541.13 apply to vocational education licenses. 541.14 (c) Notwithstanding the provisions of clause (a),noa 541.15 teachershallmust not be reinstated to a position in a field in 541.16 which the teacher holds only a provisional license, other than a 541.17 vocational education license, while another teacher who holds a 541.18 nonprovisional license in the same field is available for 541.19 reinstatement. 541.20 Sec. 54. Minnesota Statutes 1996, section 125.17, 541.21 subdivision 12, is amended to read: 541.22 Subd. 12. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 541.23 EXPUNGEMENT.] All evaluations and files generated within 541.24 aschooldistrict relating to each individual teachershallmust 541.25 be available to each individual teacher upon the teacher's 541.26 written request. Effective January 1, 1976, all evaluations and 541.27 files, wherever generated, relating to each individual teacher 541.28shallmust be available to each individual teacher upon the 541.29 teacher's written request. The teachershall havehas the right 541.30 to reproduce any of the contents of the files at the teacher's 541.31 expense and to submit for inclusion in the file written 541.32 information in response to any material contained therein. 541.33 Aschooldistrict may destroy the files as provided by law 541.34 andshallmust expunge from the teacher's file any material 541.35 found to be false or substantially inaccurate through the 541.36 grievance procedure required pursuant to section 179A.20, 542.1 subdivision 4; provided,. The grievance procedure promulgated 542.2 by the director of the bureau of mediation services, pursuant to 542.3 section 179A.04, subdivision 3, clause (h),shall applyapplies 542.4 to those principals and supervisory employees not included in an 542.5 appropriate unit as defined in section 179A.03. Expungement 542.6 proceedingsshallmust be commenced within the time period 542.7 provided in the collective bargaining agreement for the 542.8 commencement of a grievance. If no time period is provided in 542.9 the bargaining agreement, the expungement proceedingsshallmust 542.10 commence within 15 days after the teacher has knowledge of the 542.11 inclusion in the teacher's file of the material the teacher 542.12 seeks to have expunged. 542.13 Sec. 55. Minnesota Statutes 1996, section 125.18, is 542.14 amended to read: 542.15 125.18 [SABBATICAL LEAVE FOR SCHOOL TEACHERS.] 542.16 Subdivision 1. [QUALIFICATIONS.] A teacher who holds a 542.17 license, according to this chapter, and a contract for 542.18 employment by a school district or other organization providing 542.19 public education may be granted a sabbatical leave by the board 542.20 employing the teacher under rules promulgated by the board. 542.21 Subd. 2. [RETURN TO POSITION.]AnyA teacher whomakes542.22applicationapplies for and accepts sabbatical leave shall agree 542.23 that, upon the conclusion of said sabbatical leave, the teacher 542.24 shall return to the teacher's position for a period determined 542.25 by the board before the leave is granted, or repay the district 542.26 the portion of salary received while on sabbatical leave. 542.27 Subd. 3. [RETAIN RIGHTS IN EMPLOYING DISTRICT.]AnyA 542.28 teacher who has been granted a sabbatical leaveshallmust 542.29 retain all rights in the employing district as though teaching 542.30 in that district. 542.31 Subd. 4. [DEFINITION.] The term sabbatical leave, as used 542.32 in this section,shall meanmeans compensated leaves of absence 542.33 granted for purposes of professional improvement or service. 542.34 Sec. 56. Minnesota Statutes 1996, section 125.181, is 542.35 amended to read: 542.36 125.181 [PROFESSIONAL PRACTICES; INTENT.] 543.1 The purpose of sections 125.181 to 125.185, is to develop 543.2 standards of ethical conduct for the guidance and improvement of 543.3 the teaching profession and to provide measures through which 543.4 the observance ofsuchstandards by the members of the 543.5 profession may be promoted and enforced. 543.6 Sec. 57. Minnesota Statutes 1996, section 125.183, 543.7 subdivision 1, is amended to read: 543.8 Subdivision 1. [BOARD OF TEACHING.] The board of teaching 543.9 consists of 11 members appointed by the governor. Membership 543.10 terms, compensation of members, removal of members, the filling 543.11 of membership vacancies, and fiscal year and reporting 543.12 requirementsshall beare as provided in sections 214.07 to 543.13 214.09. No member may be reappointed for more than one 543.14 additional term. 543.15 Sec. 58. Minnesota Statutes 1996, section 125.183, 543.16 subdivision 4, is amended to read: 543.17 Subd. 4. [VACANT POSITION.] The position of a member who 543.18 leaves Minnesota or whose employment status changes to a 543.19 category different from that from which appointedshall beis 543.20 deemed vacant. 543.21 Sec. 59. Minnesota Statutes 1996, section 125.183, 543.22 subdivision 5, is amended to read: 543.23 Subd. 5. [ADMINISTRATION, TERMS, COMPENSATION; REMOVAL; 543.24 VACANCIES.] The provision of staff, administrative services and 543.25 office space; the review and processing of complaints; the 543.26 setting of fees; the selection and duties of an executive 543.27 secretary to serve the board; and other provisions relating to 543.28 board operationsshall beare as provided in chapter 214. 543.29 Membership terms, compensation of members, removal of members, 543.30 the filling of membership vacancies, and fiscal year and 543.31 reporting requirementsshall beare as provided in sections 543.32 214.07 to 214.09. 543.33 Sec. 60. Minnesota Statutes 1996, section 125.184, is 543.34 amended to read: 543.35 125.184 [MEETINGS.] 543.36 Subdivision 1. [MEETINGS.] The board of teachingshall544.1 must meet regularly atsuchthe times and places as the board 544.2shall determinedetermines. Meetingsshallmust be called by 544.3 the chair or at the written request of any eight members. 544.4 Subd. 2. [EXECUTIVE SECRETARY.] The board of teaching 544.5shallmust have an executive secretary whoshall beis in the 544.6 unclassified civil service and whoshallis notbea member of 544.7 the board. 544.8 Sec. 61. Minnesota Statutes 1996, section 125.185, 544.9 subdivision 1, is amended to read: 544.10 Subdivision 1. [CODE OF ETHICS.] The board of teaching 544.11shallmust develop by rule a code of ethics covering standards 544.12 of professional teaching practices, including areas of ethical 544.13 conduct and professional performance and methods of enforcement. 544.14 Sec. 62. Minnesota Statutes 1996, section 125.185, 544.15 subdivision 2, is amended to read: 544.16 Subd. 2. [ADVISE MEMBERS OF PROFESSION.] The boardshall544.17 must act in an advisory capacity to members of the profession in 544.18 matters of interpretation of the code of ethics. 544.19 Sec. 63. Minnesota Statutes 1996, section 125.185, 544.20 subdivision 4, is amended to read: 544.21 Subd. 4. [LICENSE AND RULES.] (a) The boardshallmust 544.22 adopt rules to license public school teachers and interns 544.23 subject to chapter 14. 544.24 (b) The boardshallmust adopt rules requiring a person to 544.25 successfully complete a skills examination in reading, writing, 544.26 and mathematics as a requirement for initial teacher licensure. 544.27 Such rulesshallmust require college and universities offering 544.28 a board approved teacher preparation program to provide remedial 544.29 assistance to persons who did not achieve a qualifying score on 544.30 the skills examination, including those for whom English is a 544.31 second language. 544.32 (c) The boardshallmust adopt rules to approve teacher 544.33 preparation programs. 544.34 (d) The boardshallmust provide the leadership and shall 544.35 adopt rules for the redesign of teacher education programs to 544.36 implement a research based, results-oriented curriculum that 545.1 focuses on the skills teachers need in order to be effective. 545.2 The board shall implement new systems of teacher preparation 545.3 program evaluation to assure program effectiveness based on 545.4 proficiency of graduates in demonstrating attainment of program 545.5 outcomes. 545.6 (e) The boardshallmust adopt rules requiring successful 545.7 completion of an examination of general pedagogical knowledge 545.8 and examinations of licensure-specific teaching skills. The 545.9 rules shall be effective on the dates determined by the board, 545.10 but not later than July 1, 1999. 545.11 (f) The boardshallmust adopt rules requiring teacher 545.12 educators to work directly with elementary or secondary school 545.13 teachers in elementary or secondary schools to obtain periodic 545.14 exposure to the elementary or secondary teaching environment. 545.15 (g) The boardshallmust grant licenses to interns and to 545.16 candidates for initial licenses. 545.17 (h) The boardshallmust design and implement an assessment 545.18 system which requires a candidate for an initial license and 545.19 first continuing license to demonstrate the abilities necessary 545.20 to perform selected, representative teaching tasks at 545.21 appropriate levels. 545.22 (i) The boardshallmust receive recommendations from local 545.23 committees as established by the board for the renewal of 545.24 teaching licenses. 545.25 (j) The boardshallmust grant life licenses to those who 545.26 qualify according to requirements established by the board, and 545.27 suspend or revoke licenses pursuant to sections 125.09 and 545.28 214.10. The boardshallmust not establish any expiration date 545.29 for application for life licenses. 545.30 Sec. 64. Minnesota Statutes 1996, section 125.185, 545.31 subdivision 5, is amended to read: 545.32 Subd. 5. [REGISTER OF PERSONS LICENSED.] The executive 545.33 secretary of the board of teaching shall keep a record of the 545.34 proceedings of and a register of all persons licensed pursuant 545.35 to the provisions of this chapter. The registershallmust show 545.36 the name, address, license number and the renewalthereofof the 546.1 license. The boardshallmust on July 1, of each year or as 546.2 soon thereafter as is practicable, compile a list of such duly 546.3 licensed teachers and transmit a copythereofof the list to the 546.4 board. A copy of the registershallmust be available during 546.5 business hours at the office of the board to any interested 546.6 person. 546.7 Sec. 65. Minnesota Statutes 1996, section 125.185, 546.8 subdivision 7, is amended to read: 546.9 Subd. 7. [FRAUD; GROSS MISDEMEANOR.]AnyA person who 546.10shall in any manner claimclaims to be a licensed teacher 546.11 without a valid existing license issued by the board or any 546.12 person who employs fraud or deception in applying for or 546.13 securing a licenseshall beis guilty of a gross misdemeanor. 546.14 Sec. 66. Minnesota Statutes 1996, section 125.187, is 546.15 amended to read: 546.16 125.187 [VALIDITY OF CERTIFICATES OR LICENSES.] 546.17NoA rule adopted by the board of teachingshallmust not 546.18 affect the validity of certificates or licenses to teach in 546.19 effect on July 1, 1974, or the rights and privileges of the 546.20 holders thereof, except that any such certificate or license may 546.21 be suspended or revoked for any of the causes and by the 546.22 procedures specified by law. 546.23 Sec. 67. Minnesota Statutes 1996, section 125.188, 546.24 subdivision 1, is amended to read: 546.25 Subdivision 1. [REQUIREMENTS.] (a) A preparation program 546.26 that is an alternative to the post-secondary teacher preparation 546.27 program as a means to acquire an entrance license is 546.28 established. The program may be offered in any instructional 546.29 field. 546.30 (b) To participate in the alternative preparation program, 546.31 the candidate must: 546.32 (1) have a bachelor's degree; 546.33 (2) pass an examination of skills in reading, writing, and 546.34 mathematics as required by section 125.05; 546.35 (3) have been offered a job to teach in a school district, 546.36 group of districts, or an education district approved by the 547.1 board of teaching to offer an alternative preparation licensure 547.2 program; 547.3 (4)(i) have a college major in the subject area to be 547.4 taught; or 547.5 (ii) have five years of experience in a field related to 547.6 the subject to be taught; and 547.7 (5) document successful experiences working with children. 547.8 (c) An alternative preparation license is of one year 547.9 duration and is issued by the board of teaching to participants 547.10 on admission to the alternative preparation program. 547.11 (d) The board of teachingshallmust ensure that one of the 547.12 purposes of this program is to enhance the school 547.13 desegregation/integration policies adopted by the state. 547.14 Sec. 68. Minnesota Statutes 1996, section 125.188, 547.15 subdivision 3, is amended to read: 547.16 Subd. 3. [PROGRAM APPROVAL.] (a) The board of teaching 547.17shallmust approve alternative preparation programs based on 547.18 criteria adopted by the board. 547.19 (b) An alternative preparation program at a school 547.20 district, group of schools, or an education district must be 547.21 affiliated with a post-secondary institution that has a teacher 547.22 preparation program. 547.23 Sec. 69. Minnesota Statutes 1996, section 125.188, 547.24 subdivision 5, is amended to read: 547.25 Subd. 5. [STANDARD ENTRANCE LICENSE.] The board of 547.26 teachingshallmust issue a standard entrance license to an 547.27 alternative preparation licensee who has successfully completed 547.28 the school year in the alternative preparation program and who 547.29 has received a positive recommendation from the licensee's 547.30 mentorship team. 547.31 Sec. 70. Minnesota Statutes 1996, section 125.1885, 547.32 subdivision 5, is amended to read: 547.33 Subd. 5. [STANDARD ENTRANCE LICENSE.] The state board of 547.34 educationshallmust issue a standard entrance license to an 547.35 alternative preparation licensee who has successfully completed 547.36 the school year in the alternative preparation program and who 548.1 has received a positive recommendation from the licensee's 548.2 mentorship team. 548.3 Sec. 71. Minnesota Statutes 1996, section 125.189, is 548.4 amended to read: 548.5 125.189 [TEACHERS OF DEAF AND HARD OF HEARING STUDENTS; 548.6 LICENSURE REQUIREMENTS.] 548.7 The board of teachingwillmust review and determine 548.8 appropriate licensure requirements for a candidate for a license 548.9 or an applicant for a continuing license to teach deaf and hard 548.10 of hearing students in prekindergarten through grade 12. In 548.11 addition to other requirements, a candidate must demonstrate the 548.12 minimum level of proficiency in American sign language as 548.13 determined by the board. 548.14 Sec. 72. Minnesota Statutes 1996, section 125.1895, 548.15 subdivision 4, is amended to read: 548.16 Subd. 4. [REIMBURSEMENT.] For purposes of revenue under 548.17 sections 124.321 and 124.322, the department of children, 548.18 families, and learningshallmust only reimburse school 548.19 districts for the services of those interpreters/transliterators 548.20 who satisfy the standards of competency under this section. 548.21 Sec. 73. Minnesota Statutes 1996, section 125.211, 548.22 subdivision 2, is amended to read: 548.23 Subd. 2. [RESPONSIBILITY.] By July 1, 1989, the board of 548.24 teachingshallmust begin to evaluate the effectiveness of 548.25 prebaccalaureate, postbaccalaureate, and other alternative 548.26 program structures for preparing candidates for entrance into 548.27 the teaching profession. The evaluation shall be conducted by 548.28 independent research centers or evaluators who are not 548.29 associated with a Minnesota teacher education institution and 548.30 shall be longitudinal in nature.By July 1, 1990, the board of548.31teaching shall make a preliminary report on the effectiveness of548.32alternative program structures to the education and finance548.33committees of the legislature.548.34 Sec. 74. Minnesota Statutes 1996, section 125.230, 548.35 subdivision 4, is amended to read: 548.36 Subd. 4. [EMPLOYMENT CONDITIONS.] A school district 549.1shallmust pay a teaching resident a salary equal to 75 percent 549.2 of the salary of a first-year teacher with a bachelor's degree 549.3 in the district. The resident shall be a member of the local 549.4 bargaining unit and shall be covered under the terms of the 549.5 contract, except for salary and benefits, unless otherwise 549.6 provided in this subdivision. The school districtshallmust 549.7 provide health insurance coverage for the resident if the 549.8 district provides it for teachers, and may provide other 549.9 benefits upon negotiated agreement. 549.10 Sec. 75. Minnesota Statutes 1996, section 125.230, 549.11 subdivision 6, is amended to read: 549.12 Subd. 6. [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 549.13 school district with an approved teaching residency program may 549.14 use learning and development revenue for each teaching resident 549.15 in kindergarten through grade six. A district also may use the 549.16 revenue for a paraprofessional who is a person of color enrolled 549.17 in an approved teacher preparation program. A school 549.18 districtshallmust not use a teaching resident to replace an 549.19 existing teaching position unless: 549.20 (1) there is no teacher available who is properly licensed 549.21 to fill the vacancy, who has been placed on unrequested leave of 549.22 absence in the district, and who wishes to be reinstated; and 549.23 (2) the district's collective bargaining agreement includes 549.24 a memorandum of understanding that permits teaching residents to 549.25 fill an existing teaching position. 549.26 Sec. 76. Minnesota Statutes 1996, section 125.230, 549.27 subdivision 7, is amended to read: 549.28 Subd. 7. [RECOMMENDATION FOR LICENSURE REQUIREMENTS.](a)549.29 The board of teachingshallmust develop for teachers of 549.30 students in prekindergarten through grade 12, model teaching 549.31 residency outcomes and assessments, and mentoring programs. 549.32(b) The board of teaching shall report to the education549.33committees of the legislature by February 15, 1994, on549.34developing a residency program as part of teacher licensure.549.35The report shall at least discuss:549.36(1) whether a teacher residency program should be a550.1prerequisite to obtaining an initial teaching license or a550.2continuing teacher license;550.3(2) the number of teacher residency positions available550.4statewide by school district;550.5(3) how a teacher residency program and a mentorship550.6program for school teachers can be structured;550.7(4) whether additional state funding for teacher residency550.8programs is required;550.9(5) the interrelationship between existing teacher550.10preparation programs and a teacher residency program;550.11(6) issues related to implementing a teacher residency550.12program, including a timeline for implementing the program; and550.13(7) how a teacher residency program may impact upon a550.14teacher licensed in another state who seeks a teaching position550.15in Minnesota.550.16 Sec. 77. Minnesota Statutes 1996, section 125.231, 550.17 subdivision 3, is amended to read: 550.18 Subd. 3. [APPLICATIONS.] The board of teachingshallmust 550.19 make application forms available to sites interested in 550.20 developing or expanding a mentorship program. A school 550.21 district, a group of school districts, or a coalition of 550.22 districts, teachers and teacher education institutions may apply 550.23 for a teacher mentorship program grant. The board of teaching, 550.24 in consultation with the teacher mentoring task force,shall550.25 must approve or disapprove the applications. To the extent 550.26 possible, the approved applications must reflect effective 550.27 mentoring components, include a variety of coalitions and be 550.28 geographically distributed throughout the state. The board of 550.29 teachingshallmust encourage the selected sites to consider the 550.30 use of its assessment procedures. 550.31 Sec. 78. Minnesota Statutes 1996, section 125.53, is 550.32 amended to read: 550.33 125.53 [DESIGNATED STATE OFFICIAL.] 550.34 For the purposes of the agreement set forth in section 550.35 125.52, the designated state official for this stateshall beis 550.36 the commissioner of children, families, and learning. 551.1 Sec. 79. Minnesota Statutes 1996, section 125.54, is 551.2 amended to read: 551.3 125.54 [RECORD OF CONTRACTS.] 551.4 Two copies of all contracts made on behalf of this state 551.5 pursuant to the agreement set forth in section 125.52shallmust 551.6 be kept on file in the office of the commissioner of children, 551.7 families, and learning. 551.8 Sec. 80. Minnesota Statutes 1996, section 125.60, 551.9 subdivision 2, is amended to read: 551.10 Subd. 2. [LEAVE OF ABSENCE.] The board of any district may 551.11 grant an extended leave of absence without salary to any full- 551.12 or part-time elementary or secondary teacher who has been 551.13 employed by the district for at least five years and has at 551.14 least ten years of allowable service, as defined in section 551.15 354.05, subdivision 13, or the bylaws of the appropriate 551.16 retirement association or ten years of full-time teaching 551.17 service in Minnesota public elementary and secondary schools. 551.18 The maximum duration of an extended leave of absence pursuant to 551.19 this sectionshallmust be determined by mutual agreement of the 551.20 board and the teacher at the time the leave is granted and shall 551.21 be at least three but no more than five years. An extended 551.22 leave of absence pursuant to this section shall be taken by 551.23 mutual consent of the board and the teacher. If the school 551.24 board denies a teacher's request, itshallmust provide 551.25 reasonable justification for the denial. 551.26 Sec. 81. Minnesota Statutes 1996, section 125.60, 551.27 subdivision 3, is amended to read: 551.28 Subd. 3. [REINSTATEMENT.] Except as provided in 551.29 subdivisions 6a and 6b, a teacher on an extended leave of 551.30 absence pursuant to this section shall have the right to be 551.31 reinstated to a position for which the teacher is licensed at 551.32 the beginning of any school year which immediately follows a 551.33 year of the extended leave of absence, unless the teacher fails 551.34 to give the required notice of intention to return or is 551.35 discharged or placed on unrequested leave of absence or the 551.36 contract is terminated pursuant to section 125.12 or 125.17 552.1 while the teacher is on the extended leave. The boardshallis 552.2 notbeobligated to reinstate any teacher who is on an extended 552.3 leave of absence pursuant to this section, unless the teacher 552.4advisesadvised the board of the intention to return before 552.5 February 1 in the school year preceding the school year in which 552.6 the teacher wishes to return or by February 1 in the calendar 552.7 year in which the leave is scheduled to terminate. 552.8 Sec. 82. Minnesota Statutes 1996, section 125.60, 552.9 subdivision 4, is amended to read: 552.10 Subd. 4. [SENIORITY AND CONTINUING CONTRACT RIGHTS.] Any 552.11 teacher who is reinstated to a teaching position after an 552.12 extended leave of absence pursuant to this section shall retain 552.13 seniority and continuing contract rights in the employing 552.14 district as though the teacher had been teaching in the district 552.15 during the period of the extended leave; provided, however,. 552.16 This subdivision shall not be construed to require a board to 552.17 reinstate a teacher to any particular position or to include the 552.18 years spent on the extended leave of absence in the 552.19 determination of a teacher's salary upon return to teaching in 552.20 this district. 552.21 Sec. 83. Minnesota Statutes 1996, section 125.60, 552.22 subdivision 6a, is amended to read: 552.23 Subd. 6a. [EMPLOYMENT IN ANOTHER DISTRICT.]NoA school 552.24 board shall not be obligated to reinstate a teacher who takes a 552.25 full-time or part-time position as a teacher in another 552.26 Minnesota school district while on an extended leave of absence 552.27 pursuant to this section. This subdivision shall not apply to a 552.28 teacher who is employed as a substitute teacher. 552.29 Sec. 84. Minnesota Statutes 1996, section 125.60, 552.30 subdivision 8, is amended to read: 552.31 Subd. 8. [BENEFITS.] A teacher on an extended leave of 552.32 absence shall receive all of the health, accident, medical, 552.33 surgical and hospitalization insurance or benefits, for both the 552.34 teacher and the teacher's dependents, for which the teacher 552.35 would otherwise be eligible if not on an extended leave,. A 552.36 teacher shall receive the coverage if such coverage is available 553.1 from the school district's insurer, if the teacher requests the 553.2 coverage, and if the teacher either (a) reimburses the district 553.3 for the full amount of the premium necessary to maintain the 553.4 coverage within one month following the district's payment of 553.5 the premium, or (b) if the district is wholly or partially 553.6 self-insured, pays the district, according to a schedule agreed 553.7 upon by the teacher and the school board, an amount determined 553.8 by the school board to be the amount that would be charged for 553.9 the coverage chosen by the teacher if the school board purchased 553.10 all health, accident, medical, surgical and hospitalization 553.11 coverage for its teachers from an insurer. 553.12 Sec. 85. Minnesota Statutes 1996, section 125.611, 553.13 subdivision 1, is amended to read: 553.14 Subdivision 1. [CRITERIA.] For purposes of this section, 553.15 "teacher" means a teacher as defined in section 125.03, 553.16 subdivision 1, who: 553.17 (a) is employed in a public elementary or secondary school 553.18 in the state and 553.19 (b) either 553.20 (1)(i) hasnot less thanat least 15 total years of 553.21 full-time teaching service in elementary, secondary, and 553.22 technical colleges, or at least 15 years of allowable service as 553.23 defined in sections 354.05, subdivision 13; 354.092; 354.093; 553.24 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 553.25 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article 553.26 II, section 1 and 553.27 (ii) has or will have attained the age of 55 years but less 553.28 than 65 years as of the June 30 in the school year during which 553.29 an application for an early retirement incentive is made, or 553.30 (2) hasnot less thanat least 30 total years of full-time 553.31 teaching service in elementary, secondary, and technical 553.32 colleges, or at least 30 years of allowable service as defined 553.33 in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 553.34 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 553.35 354A.093; 354A.094; or Laws 1982, chapter 578, article II, 553.36 section 1. 554.1 Sec. 86. Minnesota Statutes 1996, section 125.611, 554.2 subdivision 13, is amended to read: 554.3 Subd. 13. [APPLICATIONS.] A teacher meeting the 554.4 requirements of subdivision 1 may apply to the school board of 554.5 the employing district for a contract for termination of 554.6 services, withdrawal from active teaching service, and payment 554.7 of an early retirement incentive. This applicationshallmust 554.8 be submitted on or before February 1 of the school year at the 554.9 end of which the teacher wishes to retire. A school boardshall554.10 must approve or deny the application within 30 days after it is 554.11 received by the board. The amount of the early retirement 554.12 incentive shall be agreed upon between the teacher and the 554.13 school board. The early retirement incentive shall be paid by 554.14 the employing district at the time and in the manner mutually 554.15 agreed upon by a teacher and the board. 554.16 Sec. 87. Minnesota Statutes 1996, section 125.62, 554.17 subdivision 2, is amended to read: 554.18 Subd. 2. [APPLICATION.] To obtain a joint grant, a joint 554.19 applicationshallmust be submitted to the state board of 554.20 education. The application must be developed with the 554.21 participation of the parent advisory committee, established 554.22 according to section 126.51, and the Indian advisory committee 554.23 at the post-secondary institution. The joint application shall 554.24 set forth: 554.25 (1) the in-kind, coordination, and mentorship services to 554.26 be provided by the post-secondary institution; and 554.27 (2) the coordination and mentorship services to be provided 554.28 by the school district. 554.29 Sec. 88. Minnesota Statutes 1996, section 125.62, 554.30 subdivision 3, is amended to read: 554.31 Subd. 3. [REVIEW AND COMMENT.] The state boardshallmust 554.32 submit the joint application to the Minnesota Indian scholarship 554.33 committee for review and comment. 554.34 Sec. 89. Minnesota Statutes 1996, section 125.62, 554.35 subdivision 7, is amended to read: 554.36 Subd. 7. [LOAN FORGIVENESS.] The loan may be forgiven if 555.1 the recipient is employed as a teacher, as defined in section 555.2 125.12 or 125.17, in an eligible school or program in 555.3 Minnesota. One-fourth of the principal of the outstanding loan 555.4 amount shall be forgiven for each year of eligible employment, 555.5 or a pro rata amount for eligible employment during part of a 555.6 school year, part-time employment as a substitute teacher, or 555.7 other eligible part-time teaching. Loans for $2,500 or less may 555.8 be forgiven at the rate of up to $1,250 per year. The following 555.9 schools and programs are eligible for the purposes of loan 555.10 forgiveness: 555.11 (1) a school or program operated by a school district; 555.12 (2) a tribal contract school eligible to receive aid 555.13 according to section 124.86; 555.14 (3) a head start program; 555.15 (4) an early childhood family education program; 555.16 (5) a program providing educational services to children 555.17 who have not entered kindergarten; or 555.18 (6) a program providing educational enrichment services to 555.19 American Indian students in grades kindergarten through 12. 555.20 If a person has an outstanding loan obtained through this 555.21 program, the duty to make payments of principal and interest may 555.22 be deferred during any time period the person is enrolled at 555.23 least one-half time in an advanced degree program in a field 555.24 that leads to employment by a school district. To defer loan 555.25 obligations, the person shall provide written notification to 555.26 the state board of education and the recipients of the joint 555.27 grant that originally authorized the loan. Upon approval by the 555.28 state board and the joint grant recipients, payments shall be 555.29 deferred. 555.30 The higher education services office shall approve the loan 555.31 forgiveness program, loan deferral, and procedures to administer 555.32 the programshall be approved by the higher education services555.33office. 555.34 Sec. 90. Minnesota Statutes 1996, section 125.623, 555.35 subdivision 3, is amended to read: 555.36 Subd. 3. [PROGRAM REQUIREMENTS.] (a) A grant recipient 556.1shallmust recruit persons of color to be teachers in 556.2 elementary, secondary, early childhood or parent education, and 556.3 provide support in linking program participants with jobs in the 556.4 recipient's school district. 556.5 (b) A grant recipientshallmust establish an advisory 556.6 council composed of representatives of communities of color. 556.7 (c) A grant recipient, with the assistance of the advisory 556.8 council,shallmust recruit high school students and other 556.9 persons, including educational paraprofessionals, support them 556.10 through the higher education application and admission process, 556.11 advise them while enrolled and link them with support resources 556.12 in the college or university and the community. 556.13 (d) A grant recipientshallmust award stipends to students 556.14 of color enrolled in an approved licensure program to help cover 556.15 the costs of tuition, student fees, supplies, and books. 556.16 Stipend awards must be based on a student's financial need and 556.17 students must apply for any additional financial aid they are 556.18 eligible for to supplement this program. No more than ten 556.19 percent of the grant may be used for costs of administering the 556.20 program. Students must agree to teach in the grantee school 556.21 district for at least two years after licensure. If the 556.22 district has no licensed positions open, the student may teach 556.23 in another district in Minnesota. 556.24 (e) The commissioner of children, families, and learning 556.25 shall consider the following criteria in awarding grants: 556.26 (1) whether the program is likely to increase the 556.27 recruitment and retention of students of color in teaching; 556.28 (2) whether grant recipients will recruit paraprofessionals 556.29 from the district to work in its schools; and 556.30 (3) whether grant recipients will establish or have a 556.31 mentoring program for students of color. 556.32 Sec. 91. Minnesota Statutes 1996, section 125.80, is 556.33 amended to read: 556.34 125.80 [TEACHER LUNCH PERIOD.] 556.35EachA teachershallmust be provided with a duty-free 556.36 lunch period, scheduled according to school board policy or 557.1 negotiated agreement. 557.2 Sec. 92. Minnesota Statutes 1996, section 126.36, 557.3 subdivision 1, is amended to read: 557.4 Subdivision 1. [BILINGUAL AND ENGLISH AS A SECOND LANGUAGE 557.5 LICENSES.] The board of teaching, hereinafter the board,shall557.6 must grant teaching licenses in bilingual education and English 557.7 as a second language to persons who present satisfactory 557.8 evidence that they: 557.9 (a) Possess competence and communicative skills in English 557.10 and in another language; 557.11 (b) Possess a bachelor's degree or other academic degree 557.12 approved by the board, and meet such requirements as to course 557.13 of study and training as the board may prescribe. 557.14 Sec. 93. Minnesota Statutes 1996, section 126.36, 557.15 subdivision 5, is amended to read: 557.16 Subd. 5. [PERSONS ELIGIBLE FOR EMPLOYMENT.] Any person 557.17 licensed under this section shall be eligible for employment by 557.18 a school board as a teacher in a bilingual education or English 557.19 as a second language program in which the language for which the 557.20 person is licensed is taught or used as a medium of 557.21 instruction. Aschoolboard may prescribe only those additional 557.22 qualifications for teachers licensed under this section as are 557.23 approved by the board of teaching. 557.24 Sec. 94. Minnesota Statutes 1996, section 126.36, 557.25 subdivision 7, is amended to read: 557.26 Subd. 7. [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 557.27 all positions in bilingual education programsschool, 557.28 districtsshallmust give preference to and make affirmative 557.29 efforts to seek, recruit, and employ persons who are (a) native 557.30 speakers of the language which is the medium of instruction in 557.31 the bilingual education program, and (b) who share the culture 557.32 of the limited English speaking children who are enrolled in the 557.33 program. The district shall provide procedures for the 557.34 involvement of the parent advisory committees in designing the 557.35 procedures for the recruitment, screening and selection of 557.36 applicants, provided that nothing herein shall. This section 558.1 must not be construed to limit the school board's authority to 558.2 hire and discharge personnel. 558.3 Sec. 95. Minnesota Statutes 1996, section 126.70, 558.4 subdivision 1, is amended to read: 558.5 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 558.6 boardshallmust use the revenue authorized in section 124A.29 558.7 for in-service education for programs under section 126.77, 558.8 subdivision 2, or for staff development plans under this 558.9 section. The board must establish a staff development committee 558.10 to develop the plan, assist site decision-making teams in 558.11 developing a site plan consistent with the goals of the plan, 558.12 and evaluate staff development efforts at the site level. A 558.13 majority of the advisory committee must be teachers representing 558.14 various grade levels, subject areas, and special education. The 558.15 advisory committee must also include nonteaching staff, parents, 558.16 and administrators. Districtsshallmust report staff 558.17 development results and expenditures to the commissioner in the 558.18 form and manner determined by the commissioner. The expenditure 558.19 reportshallmust include expenditures by theschoolboard for 558.20 district level activities and expenditures made by the staff. 558.21 The reportshallmust provide a breakdown of expenditures for 558.22 (1) curriculum development and programs, (2) in-service 558.23 education, workshops, and conferences, and (3) the cost of 558.24 teachers or substitute teachers for staff development purposes. 558.25 Within each of these categories, the reportshallmust also 558.26 indicate whether the expenditures were incurred at the district 558.27 level or the school site level, and whether the school site 558.28 expenditures were made possible by the grants to school sites 558.29 that demonstrate exemplary use of allocated staff development 558.30 revenue. These expenditures are to be reported using the UFARS 558.31 system. The commissioner shall report the staff development 558.32 expenditure data to the education committees of the legislature 558.33 by February 15 each year. 558.34 Sec. 96. Minnesota Statutes 1996, section 126.70, 558.35 subdivision 2a, is amended to read: 558.36 Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.] The staff 559.1 development committeeshallmust adopt a staff development plan 559.2 for improving student achievement of education outcomes. The 559.3 plan must be consistent with education outcomes that the school 559.4 board determines. The planshallmust include ongoing staff 559.5 development activities that contribute toward continuous 559.6 improvement in achievement of the following goals: 559.7 (1) improve student achievement of state and local 559.8 education standards in all areas of the curriculum; 559.9 (2) effectively meet the needs of a diverse student 559.10 population, including at-risk children, children with 559.11 disabilities, and gifted children, within the regular classroom 559.12 and other settings; 559.13 (3) provide an inclusive curriculum for a racially, 559.14 ethnically, and culturally diverse student population that is 559.15 consistent with the state education diversity rule and the 559.16 district's education diversity plan; 559.17 (4) improve staff ability to collaborate and consult with 559.18 one another and to resolve conflicts; 559.19 (5) effectively teach and model violence prevention policy 559.20 and curriculum that address issues of harassment and teach 559.21 nonviolent alternatives for conflict resolution; and 559.22 (6) provide teachers and other members of site-based 559.23 management teams with appropriate management and financial 559.24 management skills. 559.25 Sec. 97. Minnesota Statutes 1997 Supplement, section 559.26 126.72, subdivision 2, is amended to read: 559.27 Subd. 2. [PURPOSE.] Theschoolboardshallmust determine 559.28 the needs of its classroom teachers and the need for changes in 559.29 its curriculum. In determining these needs, the school board 559.30shallmust obtain recommendations from classroom teachers, staff 559.31 responsible for curriculum, and the curriculum advisory 559.32 committee. It shall consider assessment results, other test 559.33 results, the need for mentor teachers, and the district 559.34 improvement plan portion of the report adopted according to 559.35 section 123.972, subdivision53. Contracts executed under this 559.36 section shall relate directly to the identified needs. 560.1 Sec. 98. Minnesota Statutes 1996, section 126.72, 560.2 subdivision 3, is amended to read: 560.3 Subd. 3. [SELECTION COMMITTEE.] A committee of six members 560.4 appointed by theschoolboard shall recommend teachers to 560.5 receive contracts. Three members of the committee shall be 560.6 classroom teachers. Three members shall be administrators, 560.7 parents, members of the school board, or members of the 560.8 community. The committee shall consider only classroom teachers 560.9 who have background, knowledge, or expertise needed to perform 560.10 duties in the areas of need identified by theschoolboard. 560.11 Years of service in the districtshallmust not be a factor for 560.12 consideration by the committee.NoA teacher shall not have a 560.13 right to a contract under this section based on seniority or 560.14 order of employment in the district. The committee shall 560.15 recommend to the school board names of individual teachers. The 560.16 number of individual teachers recommended shall be approximately 560.17 the number designated by theschoolboard to meet the identified 560.18 needs. Theschoolboard may award contracts to any of the 560.19 recommended teachers but not to any others. The board may 560.20 request the committee to recommend additional names of teachers. 560.21 Sec. 99. Minnesota Statutes 1996, section 126.72, 560.22 subdivision 6, is amended to read: 560.23 Subd. 6. [REPORT.] Each district awarding contracts under 560.24 this section is encouraged to submit a report to the 560.25 commissionerof children, families, and learning. The report 560.26 shall indicate the number of contracts awarded, whether duties 560.27 are to be performed before, during, or after the school day or 560.28 during the summer, the total cost of all contracts, and a 560.29 general description of the duties. The statement shall also 560.30 describe how the recommendations required by subdivision 2 were 560.31 obtained. Any problems associated with implementing this 560.32 section may be included. 560.33 Sec. 100. [REPEALER.] 560.34 Minnesota Statutes 1996, section 125.10, is repealed. 560.35 Sec. 101. [INSTRUCTION TO REVISOR.] 560.36 The revisor of statutes shall renumber each section of 561.1 Minnesota Statutes listed in column A with the number listed in 561.2 column B. The revisor shall also make necessary cross-reference 561.3 changes consistent with the renumbering. 561.4 Column A Column B 561.5 125.01 125A.01 561.6 125.02 125A.02 561.7 125.52 125A.05 561.8 125.53 125A.06 561.9 125.54 125A.07 561.10 125.181 125A.10 561.11 125.182 125A.11 561.12 125.183, subd. 1 125A.12, subd. 1 561.13 subd. 3 subd. 2 561.14 subd. 4 subd. 3 561.15 subd. 5 subd. 4 561.16 subd. 6 subd. 5 561.17 125.184 125A.13 561.18 125.185, subd. 1 125A.14, subd. 1 561.19 subd. 2 subd. 2 561.20 subd. 3 subd. 3 561.21 subd. 4 subd. 4 561.22 subd. 4b subd. 5 561.23 subd. 5 subd. 6 561.24 subd. 6 subd. 7 561.25 subd. 7 subd. 8 561.26 subd. 9 subd. 9 561.27 subd. 10 subd. 10 561.28 125.03, subd. 1 125A.19, subd. 1 561.29 subd. 4 subd. 2 561.30 125.04 125A.20 561.31 125.187 125A.21 561.32 125.05, subd. 1 125A.22, subd. 1 561.33 subd. 1a subd. 2 561.34 subd. 1c subd. 3 561.35 subd. 2 subd. 4 561.36 subd. 3 subd. 5 562.1 subd. 4 subd. 6 562.2 subd. 6 subd. 7 562.3 subd. 8 subd. 8 562.4 subd. 9 subd. 9 562.5 126.36, subd. 1 125A.23, subd. 1 562.6 subd. 2 subd. 2 562.7 subd. 3 subd. 3 562.8 subd. 4 subd. 4 562.9 subd. 5 subd. 5 562.10 subd. 7 subd. 6 562.11 125.06 125A.24 562.12 125.188 125A.25 562.13 125.1885 125A.26 562.14 125.189 125A.27 562.15 121.11, subd. 12 125A.30 562.16 121.611 125A.31 562.17 125.032 125A.32 562.18 125.031 125A.33 562.19 125.1895 125A.34 562.20 125.03, subd. 6 125A.35 562.21 125.191 125A.36 562.22 125.08 125A.40 562.23 125.11 125A.41 562.24 125.09, subd. 1 125A.42, subd. 1 562.25 subd. 4 subd. 2 562.26 subd. 5 subd. 3 562.27 125.12, subd. 1 125A.45, subd. 1 562.28 subd. 1a subd. 2 562.29 subd. 2 subd. 3 562.30 subd. 2a subd. 4 562.31 subd. 3 subd. 5 562.32 subd. 3b subd. 6 562.33 subd. 4 subd. 7 562.34 subd. 4b subd. 8 562.35 subd. 6 subd. 9 562.36 subd. 6a subd. 10 563.1 subd. 6b subd. 11 563.2 subd. 7 subd. 12 563.3 subd. 8 subd. 13 563.4 subd. 9 subd. 14 563.5 subd. 9a subd. 15 563.6 subd. 10 subd. 16 563.7 subd. 11 subd. 17 563.8 subd. 13 subd. 18 563.9 subd. 14 subd. 19 563.10 125.17, subd. 1 125A.46, subd. 1 563.11 subd. 2 subd. 2 563.12 subd. 2b subd. 3 563.13 subd. 3 subd. 4 563.14 subd. 3b subd. 5 563.15 subd. 4 subd. 6 563.16 subd. 5 subd. 7 563.17 subd. 6 subd. 8 563.18 subd. 7 subd. 9 563.19 subd. 8 subd. 10 563.20 subd. 9 subd. 11 563.21 subd. 10 subd. 12 563.22 subd. 10a subd. 13 563.23 subd. 11 subd. 14 563.24 subd. 12 subd. 15 563.25 125.121 125A.47 563.26 126.72 125A.48 563.27 123.35, subd. 5 125A.49 563.28 125.14 125A.50 563.29 125.13 125A.51 563.30 125.135 125A.52 563.31 125.138 125A.53 563.32 125.1385 125A.54 563.33 125.15 125A.57 563.34 125.16 125A.58 563.35 125.706 125A.59 563.36 125.80 125A.60 564.1 125.60, subd. 1 125A.62, subd. 1 564.2 subd. 2 subd. 2 564.3 subd. 3 subd. 3 564.4 subd. 4 subd. 4 564.5 subd. 5 subd. 5 564.6 subd. 6 subd. 6 564.7 subd. 6a subd. 7 564.8 subd. 6b subd. 8 564.9 subd. 8 subd. 9 564.10 125.18 125A.63 564.11 125.615 125A.64 564.12 125.611, subd. 1 125A.65, subd. 1 564.13 subd. 2 subd. 2 564.14 subd. 11 subd. 3 564.15 subd. 12 subd. 4 564.16 subd. 13 subd. 5 564.17 124.278 125A.67 564.18 125.211 125A.70 564.19 125.230 125A.72 564.20 123.35, subd. 13 125A.73 564.21 125.231, subd. 1 125A.75, subd. 1 564.22 subd. 3 subd. 2 564.23 subd. 4 subd. 3 564.24 subd. 5 subd. 4 564.25 subd. 7 subd. 5 564.26 124C.41 125A.77 564.27 126.70, subd. 1 125A.79, subd. 1 564.28 subd. 2 subd. 2 564.29 subd. 2a subd. 3 564.30 124A.29 125A.80 564.31 124A.292 125A.81 564.32 125.62 125A.83 564.33 125.623 125A.84 564.34 125.241 125A.87 564.35 ARTICLE 9 564.36 CHAPTER 125B 565.1 STUDENTS AND SCHOOL ENVIRONMENT 565.2 Section 1. Minnesota Statutes 1996, section 121.207, 565.3 subdivision 2, is amended to read: 565.4 Subd. 2. [REPORTS; CONTENT.]On or beforeBy January 1, 565.5 1994, the commissionerof children, families, and learning, in 565.6 consultation with the criminal and juvenile information policy 565.7 group, shall develop a standardized form to be used by schools 565.8 to report incidents involving the use or possession of a 565.9 dangerous weapon in school zones. The form shall include the 565.10 following information: 565.11 (1) a description of each incident, including a description 565.12 of the dangerous weapon involved in the incident; 565.13 (2) where, at what time, and under what circumstances the 565.14 incident occurred; 565.15 (3) information about the offender, other than the 565.16 offender's name, including the offender's age; whether the 565.17 offender was a student and, if so, where the offender attended 565.18 school; and whether the offender was under school expulsion or 565.19 suspension at the time of the incident; 565.20 (4) information about the victim other than the victim's 565.21 name, if any, including the victim's age; whether the victim was 565.22 a student and, if so, where the victim attended school; and if 565.23 the victim was not a student, whether the victim was employed at 565.24 the school; 565.25 (5) the cost of the incident to the school and to the 565.26 victim; and 565.27 (6) the action taken by the school administration to 565.28 respond to the incident. 565.29 The commissioner also shall develop an alternative 565.30 reporting format that allows school districts to provide 565.31 aggregate data, with an option to use computer technology to 565.32 report the data. 565.33 Sec. 2. Minnesota Statutes 1996, section 121.207, 565.34 subdivision 3, is amended to read: 565.35 Subd. 3. [REPORTS; FILING REQUIREMENTS.] By February 1 and 565.36 July 1 of each year, each school shall report incidents 566.1 involving the use or possession of a dangerous weapon in school 566.2 zones to the commissionerof children, families, and learning. 566.3 The reportsshallmust be made on the standardized forms or 566.4 using the alternative format developed by the commissioner under 566.5 subdivision 2. The commissioner shall compile the information 566.6 it receives from the schools and report it annually to the 566.7 commissioner of public safety, the criminal and juvenile 566.8 information policy group, and the legislature. 566.9 Sec. 3. Minnesota Statutes 1996, section 126.05, is 566.10 amended to read: 566.11 126.05 [TEACHER TRAINING, EFFECTS OF DRUGS AND ALCOHOL.] 566.12 All educational institutions providing teacher education 566.13shallmust offer a program in the personal use and misuse of and 566.14 dependency on tobacco, alcohol, drugs and other chemicals, and. 566.15 Every student attendingsuch institutioneducational 566.16 institutions in preparation for teaching service shall be 566.17 required to take and to satisfactorily completesucha program 566.18 under this section.Every student who graduates after June,566.191974, shall complete such a course.566.20 Sec. 4. Minnesota Statutes 1996, section 126.14, is 566.21 amended to read: 566.22 126.14 [UNITED STATES FLAG.] 566.23 Subdivision 1. [DISPLAYED BY SCHOOLS.]There shall be566.24displayed atEvery public school in Minnesotawhen in session566.25 must display an appropriate United States flag when in session. 566.26Such displayThe flag shall be displayed upon the school grounds 566.27 or outside the school building,uponon a proper staff, on every 566.28 legal holiday occurring during the school term and at such other 566.29 times as therespective boardsboard ofsuch districtsthe 566.30 district may directand. The flag must be displayed within the 566.31 principal rooms ofsuchthe school building at all other times 566.32 whilethe sameschool is in session. 566.33 Subd. 2. [SCHOOL BOARDS TO PROVIDE FLAGS AND STAFFS.]It566.34shall be the duty of eachThe boardtomust providesuchthe 566.35 flag for each of the school buildingsofin theirrespective566.36 districts, together with a suitable stafffor theto display 567.1thereofthe flag outside ofsuchthe school building and proper 567.2 arrangementfor theto displaythereof within suchthe flag in 567.3 the building, and a suitable receptacle for the safekeeping 567.4 ofsuchthe flag when not in use, as by this section directed,567.5at all times. 567.6 Sec. 5. Minnesota Statutes 1996, section 126.15, 567.7 subdivision 2, is amended to read: 567.8 Subd. 2. [APPOINTMENT OF MEMBERS.] Unless the parents or 567.9 guardian of a pupil object in writing to the school authorities 567.10 to the appointment of the pupil on a school safety patrol, it is 567.11 lawful for any pupil over nine years of age to be appointed and 567.12 designated as a memberthereof, provided thatof the patrol in 567.13 any school in which there are no pupils who have attained such 567.14 age, any pupil in the highest grade therein may be so appointed 567.15 and designated. School authorities may also appoint and 567.16 designate nonpupil adults as members of a school safety patrol 567.17 on a voluntary or for-hire basis. 567.18 Sec. 6. Minnesota Statutes 1996, section 126.15, 567.19 subdivision 3, is amended to read: 567.20 Subd. 3. [LIABILITY NOT TO ATTACH.] No liability shall 567.21 attach either to the school, educational institution, governing 567.22 board, directing authority, or any individual director, board 567.23 member, superintendent, principal, teacher, or other school 567.24 authority by virtue of the organization, maintenance, or 567.25 operation of such a school safety patrol because of injuries 567.26 sustained by any pupil, whether a member of the patrol or 567.27 otherwise by reason of the operation and maintenancethereofof 567.28 the patrol. 567.29 Sec. 7. Minnesota Statutes 1996, section 126.1995, is 567.30 amended to read: 567.31 126.1995 [SAFETY REQUIREMENT GUIDELINES.] 567.32 The departmentof children, families, and learning, in 567.33 cooperation with the Minnesota fire marshal's division,shall567.34 must develop guidelines for school lab safety. The guidelines 567.35 shall include a list of safety requirements and an explanation 567.36 of the minimum state and national laws, codes, and standards 568.1 affecting school lab safety the Minnesota fire marshal considers 568.2 necessary for schools to implement. The district superintendent 568.3mustshall ensure that every school lab within the district 568.4 complies with the school lab safety requirements. Lack of 568.5 funding is not an excuse for noncompliance. 568.6 Sec. 8. Minnesota Statutes 1996, section 126.21, 568.7 subdivision 3, is amended to read: 568.8 Subd. 3. [EXCEPTIONS.](1)(a) Notwithstanding any other 568.9 state law to the contrary, in athletic programs operated by 568.10 educational institutions or public services and designed for 568.11 participants 12 years old or older or in the 7th grade or above, 568.12 it is not an unfair discriminatory practice to restrict 568.13 membership on an athletic team to participants of one sex whose 568.14 overall athletic opportunities have previously been limited. 568.15(2)(b) When an educational institution or a public service 568.16 provides athletic teams for children 11 years old or younger or 568.17 in the 6th grade or below, those teams shall be operated without 568.18 restrictions on the basis of sex, except that when overall 568.19 athletic opportunities for one sex have previously been limited 568.20 and there is a demonstrated interest by members of that sex to 568.21 participate on a team restricted to members of that sex, the 568.22 educational institution or public service may provide a team 568.23 restricted to members of that sex. 568.24(3)(c) When two teams in the same sport are in fact 568.25 separated or substantially separated according to sex, the two 568.26 teams shall be provided with substantially equal budgets per 568.27 participant, exclusive of gate receipts and other revenues 568.28 generated by that sport, and in all other respects shall be 568.29 treated in a substantially equal manner. However, nothing in 568.30 this section shall be construed to require the two teams to 568.31 conduct combined practice sessions or any other combined 568.32 activities related to athletics. 568.33(4)(d) If two teams are provided in the same sport, one of 568.34 these teams may be restricted to members of a sex whose overall 568.35 athletic opportunities have previously been limited, and members 568.36 of either sex shall be permitted to try out for the other team. 569.1(5)(e) Notwithstanding the provisions ofclauses (1), (2)569.2 paragraphs (a), (b), and(4)(d), any wrestling team may be 569.3 restricted to members of one sex whether or not the overall 569.4 athletic opportunities of that sex have previously been limited, 569.5 provided that programs or events are provided for each sex to 569.6 the extent the educational institution or public service 569.7 determines that these programs or events are necessary to 569.8 accommodate the demonstrated interest of each sex to participate 569.9 in wrestling. 569.10 Sec. 9. Minnesota Statutes 1996, section 126.21, 569.11 subdivision 5, is amended to read: 569.12 Subd. 5. [RULES.] The state board of education, after 569.13 consultation with the commissioner of human rightsshallmust 569.14 promulgate rules in accordance with chapter 14 to implement this 569.15 section to prevent discrimination in elementary and secondary 569.16 school athletic programs operated by educational institutions. 569.17 The rules promulgated by the state board pursuant to this 569.18 section shall not require athletic competition or tournaments 569.19 for teams whose membership may be restricted to members of a sex 569.20 whose overall athletic opportunities have previously been 569.21 limited to be scheduled in conjunction with the scheduling of 569.22 athletic competition or tournaments for teams whose membership 569.23 is not so restricted by this section. Any organization, 569.24 association or league entered into by elementary or secondary 569.25 schools or public services for the purpose of promoting sports 569.26 or adopting rules and regulations for the conduct of athletic 569.27 contests between members shall provide rules and regulations and 569.28 conduct its activities so as to permit its members to comply 569.29 fully with this section. The rules of that organization, 569.30 association or league may provide separate seasons for athletic 569.31 competition or tournaments in a sport for teams whose membership 569.32 may be restricted to members of a sex whose overall athletic 569.33 opportunities have previously been limited from athletic 569.34 competition or tournaments established for teams in that same 569.35 sport whose membership is not so restricted by this section, and 569.36 its rules may prohibit a participating student from competing on 570.1 more than one school team in a given sport during a single 570.2 school year. 570.3 Sec. 10. Minnesota Statutes 1996, section 127.17, 570.4 subdivision 1, is amended to read: 570.5 Subdivision 1. [MEMBERSHIP REGULATED.] Itshall beis 570.6 unlawful for any pupil, registeredas suchand attending any 570.7 publicelementary, highschool, community college, or technical570.8college, which is partially or wholly maintained by public570.9funds,to join, become a member of, or to solicit any other 570.10 pupil of anysuchpublic school to join, or become a member of, 570.11 any secret fraternity or society wholly or partially formed from 570.12 the membership of pupils attending anysuchpublic schools or to 570.13 take part in the organization or formation of anysuch570.14 fraternity or society, exceptsuchsocieties or associationsas570.15aresanctioned by the district school boardof the district570.16concerned. 570.17 Sec. 11. Minnesota Statutes 1996, section 127.17, 570.18 subdivision 3, is amended to read: 570.19 Subd. 3. [PENALTIES.]The boards shall have full power and570.20authority, pursuant to the adoption of such rules and570.21regulations made and adopted by them, toA school board may 570.22 suspend or dismiss any pupilof such schools therefromfrom 570.23 school, ortopreventthem, or any of them,the pupil from 570.24 graduating or participating in school honors when, after 570.25 investigation, in the judgment ofsuch boardsthe board or a 570.26 majority oftheirits membership,suchthe pupil is guilty of 570.27 violating any of the provisions of this section or is guilty of 570.28 violating any rule or regulation adopted bysuch boardsthe 570.29 board for the purpose of governingsuchits schools, or 570.30 enforcing this section. 570.31 Sec. 12. Minnesota Statutes 1996, section 127.17, 570.32 subdivision 4, is amended to read: 570.33 Subd. 4. ["RUSHING" OR SOLICITING FORBIDDEN.] It is a 570.34 misdemeanor for any person, not a pupil of the schools, to be 570.35 upon school grounds, or to enter any school building, for the 570.36 purpose of "rushing" or soliciting any pupil of the schools to 571.1 join any fraternity, society, or association organized outside 571.2 of the schools.Municipal and countyDistrict courts have 571.3 jurisdiction of offenses committed under this subdivision. All 571.4 persons found guilty shall be fined not less than $2, nor more 571.5 than $10, to be paid to the county treasurer or, upon failure to 571.6 pay the fine, to be imprisoned for not more than ten days. 571.7 Sec. 13. Minnesota Statutes 1996, section 127.40, 571.8 subdivision 4, is amended to read: 571.9 Subd. 4. [SCHOOL-BASED OMBUDSPERSON.] "School-based 571.10 ombudsperson" means an administrator, a teacher, a parent, or a 571.11 student representative who shall have the responsibilitiesas571.12outlined inunder section 127.412. 571.13 Sec. 14. Minnesota Statutes 1996, section 127.41, is 571.14 amended to read: 571.15 127.41 [DISCIPLINE AND REMOVAL OF STUDENTS FROM CLASS.] 571.16 Subdivision 1. [REQUIRED POLICY.] Each school boardshall571.17 must adopt a written districtwide school discipline policy which 571.18shall includeincludes written rules of conduct for students, 571.19 minimum consequences for violations of the rules, and grounds 571.20 and procedures for removal of a student from class. The policy 571.21shallmust be developed with the participation of 571.22 administrators, teachers, employees, pupils, parents, community 571.23 members, and such other individuals or organizations as the 571.24 board determines appropriate. A school site council may adopt 571.25 additional provisions to the policy subject to the approval of 571.26 the school board. 571.27 Subd. 2. [GROUNDS FOR REMOVAL FROM CLASS.] The policy 571.28shallmust establish the various grounds for which a student may 571.29 be removed from a class in the district for a period of time 571.30 pursuant to the procedures specified in the policy. The grounds 571.31 in the policyshallmust include at least the following 571.32 provisions as well as other grounds determined appropriate by 571.33 the board: 571.34 (a) willful conduct which materially and substantially 571.35 disrupts the rights of others to an education; 571.36 (b) willful conduct which endangers school district 572.1 employees, the student or other students, or the property of the 572.2 school; and 572.3 (c) willful violation of any rule of conduct specified in 572.4 the discipline policy adopted by the board. 572.5 Subd. 3. [POLICY COMPONENTS.] The policyshallmust 572.6 include at least the following components: 572.7 (a) rules governing student conduct and procedures for 572.8 informing students of the rules; 572.9 (b) the grounds for removal of a student from a class; 572.10 (c) the authority of the classroom teacher to remove 572.11 students from the classroom pursuant to procedures and rules 572.12 established in the district's policy; 572.13 (d) the procedures for removal of a student from a class by 572.14 a teacher, school administrator, or other school district 572.15 employee; 572.16 (e) the period of time for which a student may be removed 572.17 from a class, which may not exceed five class periods for a 572.18 violation of a rule of conduct; 572.19 (f) provisions relating to the responsibility for and 572.20 custody of a student removed from a class; 572.21 (g) the procedures for return of a student to the specified 572.22 class from which the student has been removed; 572.23 (h) the procedures for notifying a student and the 572.24 student's parents or guardian of violations of the rules of 572.25 conduct and of resulting disciplinary actions; 572.26 (i) any procedures determined appropriate for encouraging 572.27 early involvement of parents or guardians in attempts to improve 572.28 a student's behavior; 572.29 (j) any procedures determined appropriate for encouraging 572.30 early detection of behavioral problems; 572.31 (k) any procedures determined appropriate for referring a 572.32 student in need of special education services to those services; 572.33 (1) the procedures for consideration of whether there is a 572.34 need for a further assessment or of whether there is a need for 572.35 a review of the adequacy of a current individual education plan 572.36 of a student with a disability who is removed from class; 573.1 (m) procedures for detecting and addressing chemical abuse 573.2 problems of a student while on the school premises; 573.3 (n) the minimum consequences for violations of the code of 573.4 conduct; and 573.5 (o) procedures for immediate and appropriate interventions 573.6 tied to violations of the code. 573.7 Sec. 15. Minnesota Statutes 1996, section 127.411, is 573.8 amended to read: 573.9 127.411 [SCHOOL SITE MEDIATION BOARD.] 573.10 Subdivision 1. [BOARD ALLOWED.] A school district or 573.11 school site council may establish a school site mediation 573.12 board. The boardshallmust consist of equal numbers of staff 573.13 and parents and, in the case of secondary schools, student 573.14 representatives. Members shall be representative of the school 573.15 community andshallmust be selected by a method as determined 573.16 in the district's discipline policy. 573.17 Subd. 2. [PURPOSES AND DUTIES.] The boardshallmust 573.18 mediate issues in dispute at the school site related to the 573.19 implementation of district and school site codes of conduct 573.20 under sections 127.40 to 127.413, and the application of the 573.21 codes to a student. 573.22 Sec. 16. Minnesota Statutes 1996, section 127.412, is 573.23 amended to read: 573.24 127.412 [OMBUDSPERSON SERVICE.] 573.25 A school district or school site council may establish an 573.26 ombudsperson service for students, parents, and staff. The 573.27 serviceshallmust consist of an administrator, a student, a 573.28 parent, and a teacher. The school siteshallmust notify 573.29 students, parents, and staff of the availability of the 573.30 service. The serviceshallmust provide advocacy for 573.31 enforcement of the codes of conduct and the procedures to 573.32 remediate disputes related to implementation of the code of 573.33 conduct and the goals of the school in maintaining an orderly 573.34 learning environment for all students. 573.35 Sec. 17. Minnesota Statutes 1996, section 127.413, is 573.36 amended to read: 574.1 127.413 [NOTIFICATION.] 574.2 Representatives of the school board and the exclusive 574.3 representative of the teachers shall discuss issues related to 574.4 notification prior to placement in classrooms of students with 574.5 histories of violent behavior and any need for intervention 574.6 services or conflict resolution or training for staff insuch574.7 these cases. 574.8 Sec. 18. Minnesota Statutes 1996, section 127.42, is 574.9 amended to read: 574.10 127.42 [REVIEW OF POLICY.] 574.11 The principal or other person having general control and 574.12 supervision of the school, and representatives of parents, 574.13 students, and staff in a school building shall confer at least 574.14 annually to review the discipline policy and to assess whether 574.15 the policy has been enforced.EachA school boardshallmust 574.16 conduct an annual review of the districtwide discipline policy. 574.17 Sec. 19. Minnesota Statutes 1996, section 127.44, is 574.18 amended to read: 574.19 127.44 [AVERSIVE AND DEPRIVATION PROCEDURES.] 574.20 The state boardof education shallmust adopt rules 574.21 governing the use of aversive and deprivation procedures by 574.22 school district employees or persons under contract with a 574.23 school district. The rules must: 574.24 (1) promote the use of positive approaches and must not 574.25 encourage or require the use of aversive or deprivation 574.26 procedures; 574.27 (2) require that planned application of aversive and 574.28 deprivation procedures be a part of an individual education 574.29 plan; 574.30 (3) require parents or guardians to be notified after the 574.31 use of aversive or deprivation procedures in an emergency; 574.32 (4) establish health and safety standards for the use of 574.33 time-out procedures that require a safe environment, continuous 574.34 monitoring of the child, ventilation, and adequate space; and 574.35 (5) contain a list of prohibited procedures. 574.36 Sec. 20. Minnesota Statutes 1996, section 127.45, 575.1 subdivision 2, is amended to read: 575.2 Subd. 2. [CORPORAL PUNISHMENT NOT ALLOWED.] An employee or 575.3 agent of apublic schooldistrict shall not inflict corporal 575.4 punishment or cause corporal punishment to be inflicted upon a 575.5 pupil to reform unacceptable conduct or as a penalty for 575.6 unacceptable conduct. 575.7 Sec. 21. Minnesota Statutes 1996, section 127.455, is 575.8 amended to read: 575.9 127.455 [MODEL POLICY.] 575.10 Subdivision 1. [MODEL POLICY.] The commissionerof575.11children, families, and learningshall maintain and make 575.12 available to school boards a model sexual, religious, and racial 575.13 harassment and violence policy. The model policy shall address 575.14 the requirements of section 127.46. 575.15 Subd. 2. [SUBMISSION TO COMMISSIONER.] Each school 575.16 boardshallmust submit to the commissionerof children,575.17families, and learninga copy of the sexual, religious, and 575.18 racial harassment and sexual, religious, and racial violence 575.19 policy the board has adopted. 575.20 Sec. 22. Minnesota Statutes 1996, section 127.46, is 575.21 amended to read: 575.22 127.46 [SEXUAL, RELIGIOUS, AND RACIAL HARASSMENT AND 575.23 VIOLENCE POLICY.] 575.24EachA school boardshallmust adopt a written sexual, 575.25 religious, and racial harassment and sexual, religious, and 575.26 racial violence policy that conforms with sections 363.01 to 575.27 363.15. The policy shall apply to pupils, teachers, 575.28 administrators, and other school personnel, include reporting 575.29 procedures, and set forth disciplinary actions that will be 575.30 taken for violation of the policy. Disciplinary actions must 575.31 conform with collective bargaining agreements and sections 575.32 127.27 to 127.39. The policy must be conspicuously posted 575.33 throughout each school building, given to each district employee 575.34 and independent contractor at the time of entering into the 575.35 person's employment contract, and included in each school's 575.36 student handbook on school policies. Each school must develop a 576.1 process for discussing the school's sexual, religious, and 576.2 racial harassment and violence policy with students and school 576.3 employees. 576.4 Sec. 23. Minnesota Statutes 1996, section 127.47, 576.5 subdivision 2, is amended to read: 576.6 Subd. 2. [DISSEMINATION.] The locker policy must be 576.7 disseminated to parents and students in the way that other 576.8 policies of general application to students are disseminated. A 576.9 copy of the policy must be provided to a student the first time 576.10after the policy is effectivethat the student is given the use 576.11 of a locker. 576.12 Sec. 24. Minnesota Statutes 1996, section 127.48, is 576.13 amended to read: 576.14 127.48 [POLICY TO REFER FIREARMS POSSESSOR.] 576.15EachA school board must have a policy requiring the 576.16 appropriate school official to, as soon as practicable, refer to 576.17 the criminal justice or juvenile delinquency system, as 576.18 appropriate,anya pupil who brings a firearm to school 576.19 unlawfully. 576.20 Sec. 25. [REPEALER.] 576.21 Minnesota Statutes 1996, section 127.17, subdivision 2, is 576.22 repealed. 576.23 Sec. 26. [INSTRUCTION TO REVISOR.] 576.24 The revisor of statutes shall renumber each section of 576.25 Minnesota Statutes listed in column A with the number listed in 576.26 column B. The revisor shall also make necessary cross-reference 576.27 changes consistent with the renumbering. 576.28 Column A Column B 576.29 126.01 125B.01 576.30 126.14 125B.03 576.31 126.091 125B.05 576.32 126.83 125B.07 576.33 126.256 125B.08 576.34 126.1995 125B.10 576.35 126.033, subd. 1 125B.15, subd. 1 576.36 subd. 2 subd. 2 577.1 subd. 3 subd. 3 577.2 subd. 5 subd. 4 577.3 126.034 125B.16 577.4 126.035 125B.17 577.5 126.036 125B.18 577.6 126.037 125B.19 577.7 126.05 125B.20 577.8 126.15 125B.25 577.9 127.40 125B.26 577.10 127.41 125B.27 577.11 127.411 125B.28 577.12 127.412 125B.30 577.13 127.413 125B.31 577.14 127.42 125B.32 577.15 127.43 125B.33 577.16 127.44 125B.34 577.17 127.45 125B.35 577.18 127.455, subd. 1 125B.36, subd. 1 577.19 subd. 2 subd. 3 577.20 127.46 125B.36, subd. 2 577.21 126.21 125B.37 577.22 127.465 125B.38 577.23 127.17, subd. 1 125B.40, subd. 1 577.24 subd. 3 subd. 2 577.25 subd. 4 subd. 3 577.26 127.47 125B.41 577.27 127.48 125B.43 577.28 121.207 125B.44 577.29 127.26 125B.50 577.30 127.27 125B.51 577.31 127.28 125B.52 577.32 127.281 125B.53 577.33 127.282 125B.54 577.34 127.29 125B.55 577.35 127.30, subd. 1 125B.56, subd. 1 577.36 subd. 1a subd. 2 578.1 subd. 2 subd. 3 578.2 subd. 3 subd. 4 578.3 127.31, subd. 1 125B.57, subd. 1 578.4 subd. 2 subd. 2 578.5 subd. 3 subd. 3 578.6 subd. 4 subd. 4 578.7 subd. 5 subd. 5 578.8 subd. 7 subd. 6 578.9 subd. 8 subd. 7 578.10 subd. 9 subd. 8 578.11 subd. 10 subd. 9 578.12 subd. 11 subd. 10 578.13 subd. 12 subd. 11 578.14 subd. 13 subd. 12 578.15 subd. 14 subd. 13 578.16 subd. 15 subd. 14 578.17 127.311 125B.58 578.18 127.32 125B.59 578.19 127.33 125B.60 578.20 127.34 125B.61 578.21 127.35 125B.62 578.22 127.36 125B.63 578.23 127.37 125B.64 578.24 127.38 125B.65 578.25 127.39 125B.66 578.26 ARTICLE 10 578.27 CHAPTER 129C 578.28 CENTER FOR ARTS EDUCATION 578.29 Section 1. Minnesota Statutes 1996, section 124C.07, is 578.30 amended to read: 578.31 124C.07 [COMPREHENSIVE ARTS PLANNING PROGRAM.] 578.32 The Lola and Rudy Perpich Minnesota center for arts 578.33 education shall prescribe the form and manner of application by 578.34 one or moreschooldistricts to be designated as a site to 578.35 participate in the comprehensive arts planning program. Up to 578.36 30 sites may be selected. The center shall designate sites in 579.1 consultation with the Minnesota alliance for arts in education 579.2 and the Minnesota state arts board. 579.3 Sec. 2. Minnesota Statutes 1996, section 124C.08, 579.4 subdivision 2, is amended to read: 579.5 Subd. 2. [CRITERIA.] The center, in consultation with the 579.6 comprehensive arts planning program state steering committee, 579.7shallmust establish criteria for site selection. Criteria 579.8 shall include at least the following: 579.9 (1) a willingness by the district or group of districts to 579.10 designate a program chair for comprehensive arts planning with 579.11 sufficient authority to implement the program; 579.12 (2) a willingness by the district or group of districts to 579.13 create a committee comprised of school district and community 579.14 people whose function is to promote comprehensive arts education 579.15 in the district; 579.16 (3) commitment on the part of committee members to 579.17 participate in training offered by the department of children, 579.18 families, and learning; 579.19 (4) a commitment of the committee to conduct a needs 579.20 assessment of arts education; 579.21 (5) commitment by the committee to evaluate its involvement 579.22 in the program; 579.23 (6) a willingness by the district to adopt a long-range 579.24 plan for arts education in the district; and 579.25 (7) location of the district or group of districts to 579.26 assure representation of urban, suburban, and rural districts 579.27 and distribution of sites throughout the state. 579.28 Sec. 3. Minnesota Statutes 1996, section 124C.08, 579.29 subdivision 3, is amended to read: 579.30 Subd. 3. [PROGRAM ACCOUNTS.] A district receiving funds 579.31shallmust maintain a separate account for the receipt and 579.32 disbursement of all funds relating to the program. The funds 579.33shallmust be spent only for the purpose of arts education 579.34 programs, including teacher release time. 579.35 Sec. 4. Minnesota Statutes 1996, section 124C.09, is 579.36 amended to read: 580.1 124C.09 [MATERIALS, TRAINING, AND ASSISTANCE.] 580.2 The Lola and Rudy Perpich Minnesota center for arts 580.3 education, in cooperation with the Minnesota alliance for arts 580.4 in education and the Minnesota state arts boardshallmust 580.5 provide materials, training, and assistance to the arts 580.6 education committees in the school districts. The center may 580.7 contract with the Minnesota alliance for arts in education for 580.8 its involvement in providing services, including staff 580.9 assistance, to the program. 580.10 Sec. 5. Minnesota Statutes 1997 Supplement, section 580.11 129C.10, subdivision 3, is amended to read: 580.12 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 580.13 the powers necessary for the care, management, and control of 580.14 the Lola and Rudy Perpich Minnesota center for arts education 580.15 and all its real and personal property. The powers shall 580.16 include, but are not limited to, those listed in this 580.17 subdivision. 580.18 (b) The board may employ and discharge necessary employees, 580.19 and contract for other services to ensure the efficient 580.20 operation of the center for arts education. 580.21 (c) The board may receive and award grants. The board may 580.22 establish a charitable foundation and accept, in trust or 580.23 otherwise, any gift, grant, bequest, or devise for educational 580.24 purposes and hold, manage, invest, and dispose of them and the 580.25 proceeds and income of them according to the terms and 580.26 conditions of the gift, grant, bequest, or devise and its 580.27 acceptance. The boardshallmust adopt internal procedures to 580.28 administer and monitor aids and grants. 580.29 (d) The board may establish or coordinate evening, 580.30 continuing education, extension, and summer programs for 580.31 teachers and pupils. 580.32 (e) The board may identify pupils who have artistic talent, 580.33 either demonstrated or potential, in dance, literary arts, media 580.34 arts, music, theater, and visual arts, or in more than one art 580.35 form. 580.36 (f) The boardshallmust educate pupils with artistic 581.1 talent by providing: 581.2 (1) an interdisciplinary academic and arts program for 581.3 pupils in the 11th and 12th grades. The total number of pupils 581.4 accepted under this clause and clause (2) shall not exceed 300; 581.5 (2) additional instruction to pupils for a 13th grade. 581.6 Pupils eligible for this instruction are those enrolled in 12th 581.7 grade who need extra instruction and who apply to the board, or 581.8 pupils enrolled in the 12th grade who do not meet learner 581.9 outcomes established by the board; 581.10 (3) intensive arts seminars for one or two weeks for pupils 581.11 in grades 9 to 12; 581.12 (4) summer arts institutes for pupils in grades 9 to 12; 581.13 (5) artist mentor and extension programs in regional sites; 581.14 and 581.15 (6) teacher education programs for indirect curriculum 581.16 delivery. 581.17 (g) The board may determine the location for the Lola and 581.18 Rudy Perpich Minnesota center for arts education and any 581.19 additional facilities related to the center, including the 581.20 authority to lease a temporary facility. 581.21 (h) The board must plan for the enrollment of pupils on an 581.22 equal basis from each congressional district. 581.23 (i) The board may establish task forces as needed to advise 581.24 the board on policies and issues. The task forces expire as 581.25 provided in section 15.059, subdivision 6. 581.26 (j) The board may request the commissioner of children, 581.27 families, and learning for assistance and services. 581.28 (k) The board may enter into contracts with other public 581.29 and private agencies and institutions for residential and 581.30 building maintenance services if it determines that these 581.31 services could be provided more efficiently and less expensively 581.32 by a contractor than by the board itself. The board may also 581.33 enter into contracts with public or private agencies and 581.34 institutions, school districts or combinations of school 581.35 districts, or service cooperatives to provide supplemental 581.36 educational instruction and services. 582.1 (l) The board may provide or contract for services and 582.2 programs by and for the center for arts education, including a 582.3 store, operating in connection with the center; theatrical 582.4 events; and other programs and services that, in the 582.5 determination of the board, serve the purposes of the center. 582.6 (m) The board may provide for transportation of pupils to 582.7 and from the center for arts education for all or part of the 582.8 school year, as the board considers advisable and subject to its 582.9 rules. Notwithstanding any other law to the contrary, the board 582.10 may charge a reasonable fee for transportation of pupils. Every 582.11 driver providing transportation of pupils under this paragraph 582.12 must possess all qualifications required by the state board of 582.13 education. The board may contract for furnishing authorized 582.14 transportation under rules established by the commissioner of 582.15 children, families, and learning and may purchase and furnish 582.16 gasoline to a contract carrier for use in the performance of a 582.17 contract with the board for transportation of pupils to and from 582.18 the center for arts education. When transportation is provided, 582.19 scheduling of routes, establishment of the location of bus 582.20 stops, the manner and method of transportation, the control and 582.21 discipline of pupils, and any other related matter is within the 582.22 sole discretion, control, and management of the board. 582.23 (n) The board may provide room and board for its pupils. 582.24 If the board provides room and board, it shall charge a 582.25 reasonable fee for the room and board. The fee is not subject 582.26 to chapter 14 and is not a prohibited fee according to sections 582.27 120.71 to 120.76. 582.28 (o) The board may establish and set fees for services and 582.29 programs. If the board sets fees not authorized or prohibited 582.30 by the Minnesota public school fee law, it may do so without 582.31 complying with the requirements of section 120.75, subdivision 1. 582.32 (p) The board may apply for all competitive grants 582.33 administered by agencies of the state and other government or 582.34 nongovernment sources. 582.35 Sec. 6. Minnesota Statutes 1996, section 129C.10, 582.36 subdivision 3a, is amended to read: 583.1 Subd. 3a. [CENTER ACCOUNT.]There is established in the583.2state treasuryA center for arts education account is 583.3 established in the special revenue fund in the state treasury. 583.4 All money collected by the board, including rental income,shall583.5 must be deposited in the account. Money in the account, 583.6 including interest earned, is appropriated to the board for the 583.7 operation of its services and programs. 583.8 Sec. 7. Minnesota Statutes 1996, section 129C.10, 583.9 subdivision 3b, is amended to read: 583.10 Subd. 3b. [APPEAL.] A parent who disagrees with a board 583.11 action that adversely affects the academic program of an 583.12 enrolled pupil may appeal the board's action to the commissioner 583.13 of children, families, and learning within 30 days of the 583.14 board's action. The decision of the commissioner shall be 583.15 binding on the board. The boardshallmust inform each pupil 583.16 and parent at the time of enrolling of a parent's right to 583.17 appeal a board action affecting the pupil's academic program. 583.18 Sec. 8. Minnesota Statutes 1996, section 129C.10, 583.19 subdivision 4, is amended to read: 583.20 Subd. 4. [EMPLOYEES.] (a)(1) The boardshallmust appoint 583.21 a director of the center for arts education who shall serve in 583.22 the unclassified service. 583.23 (2) The boardshallmust employ, upon recommendation of the 583.24 director, a coordinator of resource programs who shall serve in 583.25 the unclassified service. 583.26 (3) The boardshallmust employ, upon recommendation of the 583.27 director, up to six department chairs who shall serve in the 583.28 unclassified service. The chairs shall be licensed teachers 583.29 unless no licensure exists for the subject area or discipline 583.30 for which the chair is hired. 583.31 (4) The board may employ other necessary employees, upon 583.32 recommendation of the director. 583.33 (5) The boardshallmust employ, upon recommendation of the 583.34 director, an executive secretary for the director, who shall 583.35 serve in the unclassified service. 583.36 (b) The employees hired under this subdivision and other 584.1 necessary employees hired by the board shall be state employees 584.2 in the executive branch. 584.3 Sec. 9. Minnesota Statutes 1996, section 129C.10, 584.4 subdivision 6, is amended to read: 584.5 Subd. 6. [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 584.6 SPACE.] Public post-secondary institutionsshallmust provide 584.7 space for programs offered by the Lola and Rudy Perpich 584.8 Minnesota center for arts education at no cost or reasonable 584.9 cost to the center to the extent that space is available at the 584.10 public post-secondary institutions. 584.11 Sec. 10. Minnesota Statutes 1996, section 129C.15, is 584.12 amended to read: 584.13 129C.15 [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.] 584.14 Subdivision 1. [RESOURCE AND OUTREACH.] The center 584.15shallmust offer resource and outreach programs and services 584.16 statewide aimed at the enhancement of arts education 584.17 opportunities for pupils in elementary and secondary school. 584.18 The programs and servicesshallmust include: 584.19 (1) developing and demonstrating exemplary curriculum, 584.20 instructional practices, and assessment; 584.21 (2) disseminating information; and 584.22 (3) providing programs for pupils and teachers that develop 584.23 technical and creative skills in art forms that are 584.24 underrepresented and in geographic regions that are underserved. 584.25 Subd. 2. [MAGNET PROGRAMS.] The centershallmust identify 584.26 at least one school district in each congressional district with 584.27 interest and the potential to offer magnet arts programs using 584.28 the curriculum developed by the Lola and Rudy Perpich Minnesota 584.29 center for arts education. 584.30 Subd. 3. [CENTER RESPONSIBILITIES.] The centershallmust: 584.31 (1) provide information and technical services to arts 584.32 teachers, professional arts organizations, school districts, and 584.33 the department of children, families, and learning; 584.34 (2) gather and conduct research in arts education; 584.35 (3) design and promote arts education opportunities for all 584.36 Minnesota pupils in elementary and secondary schools; and 585.1 (4) serve as liaison for the department of children, 585.2 families, and learning to national organizations for arts 585.3 education. 585.4 Sec. 11. [INSTRUCTION TO REVISOR.] 585.5 The revisor of statutes shall renumber each section of 585.6 Minnesota Statutes listed in column A with the number listed in 585.7 column B. The revisor shall also make necessary cross-reference 585.8 changes consistent with the renumbering. 585.9 Column A Column B 585.10 124C.09 129C.20 585.11 124C.07 129C.25 585.12 124C.08 129C.26 585.13 ARTICLE 11 585.14 GENERAL PROVISIONS 585.15 Section 1. [BONDS AND CERTIFICATES.] 585.16 A debt obligation authorized and issued by a repealed 585.17 section in this act must be paid for and retired according to 585.18 the section authorizing the debt obligation and the terms of the 585.19 obligation and bond indentures and trust agreements. 585.20 Sec. 2. [REPEALER.] 585.21 Minnesota Statutes 1996, section 127.01, is repealed. 585.22 Sec. 3. [REVISOR INSTRUCTION.] 585.23 (a) If a provision of a section of Minnesota Statutes 585.24 amended by this act is amended by the 1998 regular session, the 585.25 revisor shall codify the amendment consistent with the 585.26 recodification of the affected section by this act, 585.27 notwithstanding any law to the contrary. 585.28 (b) In the next and subsequent editions of Minnesota 585.29 Statutes and Minnesota Rules, the revisor shall correct all 585.30 cross-references to sections renumbered, recodified, or repealed 585.31 by this act. 585.32 (c) In the next and subsequent editions of Minnesota 585.33 Statutes and Minnesota Rules, the revisor shall replace "actual 585.34 pupil units" with "resident pupil units" and "fund balance pupil 585.35 units" with "adjusted pupil units." 585.36 Sec. 4. [EFFECTIVE DATE.] 586.1 This act is effective July 1, 1998. 586.2 ARTICLE 12 586.3 Section 1. Minnesota Statutes 1996, section 124.2727, 586.4 subdivision 6a, as added by 1998 H. F. No. 2874, article 1, 586.5 section 19, if enacted, is amended to read: 586.6 Subd. 6a. [FISCAL YEAR 1999 AND FISCAL YEAR 2000 DISTRICT 586.7 COOPERATION REVENUE.] A district's cooperation revenue for 586.8 fiscal year 1999 and fiscal year 2000 is equal to the greater of 586.9 $67 times the actual pupil units or $25,000. 586.10 Sec. 2. Minnesota Statutes 1996, section 124.2727, 586.11 subdivision 6c, as added by 1998 H. F. No. 2874, article 1, 586.12 section 20, if enacted, is amended to read: 586.13 Subd. 6c. [FISCAL YEAR 1999 AND FISCAL YEAR 2000 DISTRICT 586.14 COOPERATION AID.] A district's cooperation aid for fiscal year 586.15 1999 and fiscal year 2000 is the difference between its district 586.16 cooperation revenue and its district cooperation levy. If a 586.17 district does not levy the entire amount permitted, aid must be 586.18 reduced in proportion to the actual amount levied. 586.19 Sec. 3. Minnesota Statutes 1997 Supplement, section 586.20 124A.22, subdivision 2, as added by 1998 H. F. No. 2874, article 586.21 1, section 27, if enacted, is amended to read: 586.22 Subd. 2. [BASIC REVENUE.] The basic revenue for each 586.23 district equals the formula allowance times the actual pupil 586.24 units for the school year. The formula allowance for fiscal 586.25 year 1997 is $3,505. The formula allowance for fiscal year 1998 586.26 is $3,581 and the formula allowance for fiscal year 1999 and 586.27 fiscal year 2000 is $3,530. The formula allowance for fiscal 586.28 year20002001 and subsequent fiscal years is $3,597. 586.29 Sec. 4. Minnesota Statutes 1997 Supplement, section 586.30 124A.22, subdivision 13b, as added by H. F. No. 2874, article 1, 586.31 section 30, if enacted, is amended to read: 586.32 Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's 586.33 transportation transition allowance for fiscal year 1998 and 586.34 later equals the result of the following: 586.35 (1) if the result in subdivision 13a, paragraph (a), clause 586.36 (iii), for fiscal year 1998 is less than the fiscal year 1996 587.1 base allowance, the transportation transition allowance equals 587.2 the fiscal year 1996 base allowance minus the result in 587.3 subdivision 13a, paragraph (a), clause (iii); or 587.4 (2) if the result in subdivision 13a, paragraph (a), clause 587.5 (iii), for fiscal year 1998 and later is greater than or equal 587.6 to the fiscal year 1996 base allowance, the transportation 587.7 transition allowance equals zero. 587.8 (b) A district's compensatory transition allowance equals 587.9 the greater of zero or the difference between: 587.10 (1) the amount of compensatory revenue the district would 587.11 have received under subdivision 3 for fiscal year 1998 computed 587.12 using a basic formula allowance of $3,281; and 587.13 (2) the amount the district receives under subdivision 3; 587.14 divided by 587.15 (3) the district's actual pupil units for fiscal year 1998. 587.16 (c) A district's cooperation transition allowance for 587.17 fiscal year20002001 and later equals the greater of zero or 587.18 the difference between: 587.19 (1) $25,000; and 587.20 (2) $67 times the district's actual pupil units for fiscal 587.21 year20002001. 587.22 (d) A district's transition allowance for fiscal year 1999 587.23 is equal to the sum of its transportation transition allowance 587.24 and its compensatory transition allowance. A district's 587.25 transition allowance for fiscal year 2000 and thereafter is 587.26 equal to the sum of its transportation transition allowance, its 587.27 compensatory transition allowance, and its cooperation 587.28 transition allowance. 587.29 Sec. 5. Minnesota Statutes 1996, section 124A.22, 587.30 subdivision 14, as added by H. F. No. 2874, article 1, section 587.31 31, if enacted, is amended to read: 587.32 Subd. 14. [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] 587.33 (a) A school district's graduation standards implementation 587.34 revenue is equal to $52 times its actual pupil units for fiscal 587.35 year 1999 plus $14 times its actual pupil units for fiscal year 587.36 1999 if the district implements the graduation rule under 588.1 section 121.1114, paragraph (b), and $43 per pupil unit for all 588.2 districts for fiscal year 2000 and later. Graduation standards 588.3 implementation revenue is reserved and must be used according to 588.4 paragraphs (b) and (c). 588.5 (b) For fiscal year 1999, revenue must be reserved for 588.6 programs according to clauses (1) to (3). 588.7 (1) At least $20 per actual pupil unit plus $14 per actual 588.8 pupil unit for a district that implements the graduation rule 588.9 under section 121.1114, paragraph (b), must be allocated to 588.10 school sites in proportion to the number of students enrolled at 588.11 each school site weighted according to section 124.17, 588.12 subdivision 1, and is reserved for programs designed to enhance 588.13 the implementation of the graduation rule through intensive 588.14 staff development and decentralized decision making. 588.15 (2) At least $5 per actual pupil unit is reserved for 588.16 gifted and talented programs that are integrated with the 588.17 graduation rule. This aid must supplement, not supplant, money 588.18 spent on gifted and talented programs authorized under Laws 588.19 1997, First Special Session chapter 4, article 5, section 24. 588.20 (3) Remaining aid under this paragraph must be used: 588.21 (i) for technology purposes including wiring, network 588.22 connections, and other technology-related infrastructure 588.23 improvements; purchase or lease of computer software and 588.24 hardware to be used in classrooms and for instructional 588.25 purposes; purchase or lease of interactive television network 588.26 equipment and network support; purchase or lease of computer 588.27 software and hardware designed to support special needs 588.28 programming and limited English proficiency programming; network 588.29 and technical support; and purchase of textbooks and other 588.30 instructional materials; or 588.31 (ii) to reduce class size. 588.32 (c) For fiscal year 2000 and later, revenue must be 588.33 allocated to school sites and reserved for programs designed to 588.34 enhance the implementation of the graduation rule through: (1) 588.35 staff development programs; (2) technology purposes under 588.36 paragraph (b), clause (3); (3) gifted and talented programs; or 589.1 (4) class size reduction programs based at the school site. 589.2 (d) To the extent possible, school districts shall make 589.3 opportunities for graduation standards implementation available 589.4 to teachers employed by intermediate school districts. If the 589.5 commissioner determines that the supplemental appropriation made 589.6 for this subdivision under section 40, subdivision 2, is in 589.7 excess of the amount needed for this subdivision, the 589.8 commissioner shall make equal payments of one-third of the 589.9 excess to each intermediate school district for the purpose of 589.10 paragraph (a). 589.11 (e) A district that qualifies for the referendum allowance 589.12 reduction under section 124A.03, subdivision 3c, and whose 589.13 authority does not exceed the referendum allowance limit under 589.14 section 124A.03, subdivision 1c, clause (2), shall receive a 589.15 graduation standards implementation equity adjustment. In 589.16 fiscal year 1999, the equity adjustment aid is equal to$29$34 589.17 per actual pupil unit. In fiscal year20012000 and thereafter, 589.18 the equity adjustment is equal to$20$25 per actual pupil unit. 589.19 Sec. 6. Minnesota Statutes 1997 Supplement, section 589.20 124A.23, subdivision 1, as added by H. F. No. 2874, article 1, 589.21 section 33, if enacted, is amended to read: 589.22 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 589.23 commissioner shall establish the general education tax rate by 589.24 July 1 of each year for levies payable in the following year. 589.25 The general education tax capacity rate shall be a rate, rounded 589.26 up to the nearest hundredth of a percent, that, when applied to 589.27 the adjusted net tax capacity for all districts, raises the 589.28 amount specified in this subdivision. The general education tax 589.29 rate shall be the rate that raises $1,385,500,000 for fiscal 589.30 year 1999, $1,325,500,000 for fiscal year 2000, and 589.31 $1,387,100,000 for fiscal year 2001, and later fiscal years. 589.32 The general education tax rate may not be changed due to changes 589.33 or corrections made to a district's adjusted net tax capacity 589.34 after the tax rate has been established. If the levy target for 589.35 fiscal year 1999 or fiscal year 2000 is changed by another law 589.36 enacted during the 1997 or 1998 session, the commissioner shall 590.1 reduce the general education levy target in this section by the 590.2 amount of the reduction in the enacted law. 590.3 Sec. 7. 1998 H. F. No. 2874, article 1, section 51, if 590.4 enacted, is amended to read: 590.5 Sec. 51. [REPEALER.] 590.6 (a) Minnesota Statutes 1997 Supplement, section 124.912, 590.7 subdivisions 2 and 3, are repealed effective for taxes payable 590.8 in 1998. 590.9 (b) Minnesota Statutes 1996, sections 121.904, subdivision 590.10 4c; and 124.2601, subdivision 4, are repealed. 590.11 (c) Minnesota Statutes 1997 Supplement, section 124.2601, 590.12 subdivision 5, is repealed effective July 1, 1999. 590.13 (d) Minnesota Statutes 1996, section 124.2713, subdivision 590.14 6b, is repealed effective for taxes payable in 1999 and revenue 590.15 for fiscal year 2000. 590.16 (e)Minnesota Statutes 1996, section 124.2727, subdivision590.176b, is repealed effective for taxes payable in 1999.590.18(f)Minnesota Statutes 1996, section 124A.292, subdivisions 590.19 2 and 4, are repealed effective for revenue for fiscal year 2000. 590.20(g)(f) Laws 1997, chapter 231, article 1, section 17, is 590.21 repealed effective the day following final enactment. 590.22 Sec. 8. [FORMULA ALLOWANCE.] 590.23 For fiscal year 2000 the basic formula allowance under 590.24 Minnesota Statutes, section 124A.22, subdivision 2, is increased 590.25 by $67 per actual pupil unit for purposes of calculating 590.26 compensatory revenue and sparsity revenue under Minnesota 590.27 Statutes, section 124A.22.