Minnesota Legislature
SF 2242
2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 2nd Engrossment
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; providing for general education, special programs, 1.4 lifelong learning, facilities and technology, 1.5 education excellence, other programs, education 1.6 policy, libraries, and state agencies; repealing, 1.7 modifying, and expanding certain education provisions; 1.8 providing for rulemaking; appropriating money; 1.9 amending Minnesota Statutes 1998, sections 13.46, 1.10 subdivision 2; 41D.02, subdivision 2; 120A.05, by 1.11 adding subdivisions; 120A.22, subdivisions 1 and 5; 1.12 120A.24, subdivision 1; 120A.40; 120B.11, subdivision 1.13 5; 120B.30, subdivision 1; 120B.35; 121A.06; 121A.11, 1.14 subdivision 1; 121A.15; 121A.23, subdivision 1; 1.15 121A.26; 121A.27; 121A.28; 121A.29, subdivision 1; 1.16 121A.32, subdivision 1; 121A.34; 121A.41, subdivision 1.17 10; 121A.43; 121A.55; 121A.61, subdivision 1; 121A.69, 1.18 subdivision 3; 122A.09, subdivisions 4 and 6; 122A.15; 1.19 122A.18, by adding subdivisions; 122A.19, subdivision 1.20 4; 122A.20, subdivisions 1 and 2; 122A.21; 122A.22; 1.21 122A.26, by adding a subdivision; 122A.28; 122A.40, 1.22 subdivisions 3, 5, 7, 8, 10, 16, and 19; 122A.41, 1.23 subdivisions 4 and 15; 122A.51; 122A.58, subdivision 1.24 1; 122A.60, subdivisions 1 and 3; 122A.68, 1.25 subdivisions 1 and 7; 122A.69; 122A.70, subdivision 2; 1.26 122A.91; 122A.92; 123A.05, subdivisions 2, 3, and by 1.27 adding a subdivision; 123A.06, subdivisions 1 and 2; 1.28 123A.48, subdivision 10; 123B.02, subdivisions 1, 2, 1.29 and 3; 123B.04, subdivisions 2 and 5; 123B.09, 1.30 subdivision 8; 123B.143, subdivision 1; 123B.195; 1.31 123B.36, subdivision 1; 123B.43; 123B.445; 123B.49, 1.32 subdivisions 1 and 4; 123B.51, subdivisions 1 and 5; 1.33 123B.53; 123B.54; 123B.57, subdivision 1; 123B.58, 1.34 subdivisions 3 and 4; 123B.59; 123B.61; 123B.63, 1.35 subdivisions 3 and 4; 123B.73, subdivision 1; 123B.75, 1.36 by adding a subdivision; 123B.77, subdivision 4; 1.37 123B.83, subdivisions 1 and 4; 123B.90, subdivisions 1.38 1, 2, and 3; 123B.91, subdivision 1; 123B.92, 1.39 subdivisions 2, 4, and 9; 124D.02, subdivision 1; 1.40 124D.03, subdivision 3, and by adding a subdivision; 1.41 124D.081, subdivisions 3 and 8; 124D.09, subdivisions 1.42 5, 6, 7, and 12; 124D.10, subdivisions 1, 3, 4, 5, 6, 1.43 11, 15, and 19; 124D.11, subdivisions 1, 4, 6, and by 1.44 adding a subdivision; 124D.115, subdivision 3; 1.45 124D.118, subdivisions 2 and 3; 124D.135, subdivision 1.46 3; 124D.20, subdivision 5; 124D.22, subdivision 3; 2.1 124D.28, subdivision 1; 124D.29, by adding a 2.2 subdivision; 124D.30, subdivision 3; 124D.34, 2.3 subdivision 4; 124D.35; 124D.37; 124D.40, subdivision 2.4 2; 124D.41; 124D.42, subdivision 7; 124D.453, 2.5 subdivisions 3 and 5; 124D.454, subdivision 5; 2.6 124D.46, subdivision 1; 124D.47, subdivision 2; 2.7 124D.49, subdivision 3; 124D.52, by adding a 2.8 subdivision; 124D.65, subdivisions 1, 4, 5, and 6; 2.9 124D.68, subdivision 9; 124D.69, subdivision 1; 2.10 124D.70; 124D.74, subdivision 1; 124D.86, subdivisions 2.11 1 and 3; 124D.88, subdivisions 2 and 3; 124D.89, 2.12 subdivision 1; 124D.892; 124D.894; 124D.90; 124D.94, 2.13 subdivisions 2, 3, and 4; 125A.023; 125A.027; 125A.03; 2.14 125A.07; 125A.08; 125A.09, subdivisions 1, 4, 6, and 2.15 11; 125A.10; 125A.15; 125A.18; 125A.21, subdivision 2; 2.16 125A.24; 125A.30; 125A.33; 125A.44; 125A.50, 2.17 subdivisions 2 and 5; 125A.51; 125A.52, subdivision 1; 2.18 125A.62; 125A.64; 125A.65, subdivisions 3, 5, 6, 7, 8, 2.19 and 10; 125A.68, subdivision 1; 125A.69, subdivisions 2.20 1 and 3; 125A.70, subdivision 2; 125A.71, subdivision 2.21 3; 125A.72; 125A.73; 125A.744, subdivision 3; 125A.75, 2.22 subdivisions 3 and 8; 125A.76, subdivisions 1, 2, 4, 2.23 and 5; 125A.79, subdivisions 1, 2, 4, and by adding 2.24 subdivisions; 125B.05; 125B.20; 126C.05, subdivisions 2.25 1, 3, 5, 6, and 7; 126C.10, subdivisions 1, 2, 4, 5, 2.26 6, 7, 8, 9, 10, 13, 14, 18, 19, 20, 21, and by adding 2.27 subdivisions; 126C.12, subdivisions 1 and 4; 126C.13, 2.28 subdivisions 1 and 2; 126C.15, subdivisions 1 and 2; 2.29 126C.17, subdivisions 1, 2, 4, 5, 6, and 9; 126C.22, 2.30 subdivision 2; 126C.31; 126C.40, subdivisions 1, 2, 3, 2.31 4, and 6; 126C.41, subdivision 2; 126C.42, 2.32 subdivisions 1 and 2; 126C.44; 126C.46; 126C.48, 2.33 subdivision 8; 126C.55, by adding a subdivision; 2.34 126C.63, subdivisions 5 and 8; 126C.69, subdivisions 2.35 2, 9, and 15; 127A.05, subdivisions 1, 3, and 4; 2.36 127A.06; 127A.41, subdivisions 5 and 7; 127A.42, 2.37 subdivisions 2, 5, and 6; 127A.44, subdivision 2; 2.38 127A.45, subdivisions 2, 3, 5, and by adding a 2.39 subdivision; 127A.47, subdivisions 1, 2, 7, and 8; 2.40 127A.49, subdivisions 2 and 3; 127A.51; 127A.60, 2.41 subdivision 1; 127A.66, subdivision 2; 128C.01, 2.42 subdivision 4; 128C.02, by adding a subdivision; 2.43 128C.12, subdivision 1; 128C.20, subdivisions 1 and 2; 2.44 129C.10, subdivision 3, and by adding a subdivision; 2.45 136D.281, subdivision 4; 136D.741, subdivision 4; 2.46 136D.88, subdivision 4; 169.01, subdivision 6; 169.03, 2.47 subdivision 6; 171.3215, subdivisions 2 and 4; 2.48 181.101; 209.07, by adding a subdivision; 241.021, 2.49 subdivision 1; 245A.04, by adding a subdivision; 2.50 272.02, subdivision 8; and 626.556, subdivision 10b, 2.51 and by adding a subdivision; Laws 1992, chapter 499, 2.52 article 7, section 31, as amended; Laws 1993, chapter 2.53 224, article 3, section 32, as amended; Laws 1995, 2.54 First Special Session chapter 3, article 12, section 2.55 7, as amended; Laws 1996, chapter 412, article 1, 2.56 section 35; Laws 1997, First Special Session chapter 2.57 4, article 1, section 61, subdivisions 1, 2, 3, as 2.58 amended, and 4; Laws 1997, First Special Session 2.59 chapter 4, article 2, sections 48 and 51, subdivision 2.60 29, as amended; Laws 1997, First Special Session 2.61 chapter 4, article 3, section 25, subdivision 6; Laws 2.62 1997, First Special Session chapter 4, article 5, 2.63 section 22; Laws 1997, First Special Session chapter 2.64 4, article 8, section 4; Laws 1997, First Special 2.65 Session chapter 4, article 9, sections 6, 7, 2.66 subdivision 2, and 13; Laws 1998, chapter 398, article 2.67 2, section 53; Laws 1998, chapter 398, article 9, 2.68 section 7; and Laws 1998, chapter 404, section 5, 2.69 subdivision 5; proposing coding for new law in 2.70 Minnesota Statutes, chapters 121A; 122A; 123A; 123B; 2.71 124D; 125A; 126C; 127A; and 128C; repealing Minnesota 3.1 Statutes 1998, sections 119A.04, subdivision 5; 3.2 120A.41; 120B.05; 120B.10; 120B.11, subdivisions 3, 4, 3.3 and 7; 120B.24; 121A.03, subdivision 3; 121A.11, 3.4 subdivision 2; 121A.16; 121A.23, subdivision 2; 3.5 121A.32, subdivisions 2, 4, and 5; 121A.41, 3.6 subdivision 3; 122A.162; 122A.19, subdivisions 2 and 3.7 4; 122A.32; 122A.33; 122A.40, subdivision 6; 122A.42; 3.8 122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 3.9 122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 3.10 122A.57; 122A.71; 122A.72; 122A.75; 123A.06, 3.11 subdivisions 1 and 3; 123A.07; 123A.15, subdivision 1; 3.12 123A.44; 123A.441; 123A.442; 123A.443; 123A.444; 3.13 123A.445; 123A.446; 123B.02, subdivisions 5, 6, 9, 10, 3.14 11, 13, and 16; 123B.04, subdivision 4; 123B.11; 3.15 123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 3.16 123B.17; 123B.18; 123B.19; 123B.40; 123B.49, 3.17 subdivisions 2 and 3; 123B.51, subdivisions 2, 3, and 3.18 4; 123B.57, subdivisions 4, 5, and 7; 123B.58; 3.19 123B.59, subdivision 7; 123B.63, subdivisions 1 and 2; 3.20 123B.64; 123B.66; 123B.67; 123B.68; 123B.69; 123B.744; 3.21 123B.84; 123B.87; 123B.88, subdivisions 11, 12, 13, 3.22 18, 20, 21, and 22; 123B.89; 123B.92, subdivisions 6, 3.23 7, 8, and 10; 123B.93; 123B.95, subdivision 3; 3.24 124D.02, subdivisions 2, 3, and 4; 124D.03, 3.25 subdivisions 5, 7, 9, and 10; 124D.06; 124D.07; 3.26 124D.081, subdivisions 1 and 7; 124D.09, subdivisions 3.27 2, 8, 25, and 26; 124D.10, subdivision 13; 124D.112; 3.28 124D.113; 124D.115, subdivisions 1 and 2; 124D.116; 3.29 124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 3.30 124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 3.31 124D.128, subdivisions 1, 2, 3, 4, 5, 6, and 7; 3.32 124D.31; 124D.34, subdivision 5; 124D.43; 124D.453, 3.33 subdivision 1; 124D.46, subdivision 3; 124D.47, 3.34 subdivision 1; 124D.50, subdivisions 1, 2, and 3; 3.35 124D.60, subdivision 3; 124D.65, subdivisions 1, 2, 3, 3.36 8, 9, and 10; 124D.67; 124D.68, subdivision 1; 3.37 124D.72; 124D.81, subdivision 7; 124D.88, subdivision 3.38 1; 124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; 3.39 124D.93; 125A.76, subdivision 6; 125A.77; 125A.79, 3.40 subdivision 3; 125B.02; 125B.07, subdivisions 1, 3, 3.41 and 5; 125B.09; 125B.11; 126C.05, subdivision 4; 3.42 126C.06; 127A.05, subdivision 5; 127A.41, subdivisions 3.43 4, 8, and 9; 127A.42, subdivision 8; 127A.60, 3.44 subdivisions 2, 3, and 4; 127A.61; 127A.62, 3.45 subdivision 2; 127A.64; and 127A.66, subdivision 1; 3.46 Laws 1995, First Special Session chapter 3, article 3, 3.47 section 11; Laws 1997, First Special Session chapter 3.48 4, article 1, section 62, subdivision 5; Laws 1997, 3.49 First Special Session chapter 4, article 2, section 3.50 51, subdivision 10; and Laws 1998, chapter 398, 3.51 article 2, sections 53 and 57; Minnesota Rules, parts 3.52 3500.3900; 3500.4000; 3500.4100; 3500.4200; 3500.4300; 3.53 and 3525.2470. 3.54 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.55 ARTICLE 1 3.56 GENERAL EDUCATION 3.57 Section 1. Minnesota Statutes 1998, section 13.46, 3.58 subdivision 2, is amended to read: 3.59 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 3.60 a statute specifically provides a different classification, data 3.61 on individuals collected, maintained, used, or disseminated by 3.62 the welfare system is private data on individuals, and shall not 4.1 be disclosed except: 4.2 (1) according to section 13.05; 4.3 (2) according to court order; 4.4 (3) according to a statute specifically authorizing access 4.5 to the private data; 4.6 (4) to an agent of the welfare system, including a law 4.7 enforcement person, attorney, or investigator acting for it in 4.8 the investigation or prosecution of a criminal or civil 4.9 proceeding relating to the administration of a program; 4.10 (5) to personnel of the welfare system who require the data 4.11 to determine eligibility, amount of assistance, and the need to 4.12 provide services of additional programs to the individual; 4.13 (6) to administer federal funds or programs; 4.14 (7) between personnel of the welfare system working in the 4.15 same program; 4.16 (8) the amounts of cash public assistance and relief paid 4.17 to welfare recipients in this state, including their names, 4.18 social security numbers, income, addresses, and other data as 4.19 required, upon request by the department of revenue to 4.20 administer the property tax refund law, supplemental housing 4.21 allowance, early refund of refundable tax credits, and the 4.22 income tax. "Refundable tax credits" means the dependent care 4.23 credit under section 290.067, the Minnesota working family 4.24 credit under section 290.0671, the property tax refund under 4.25 section 290A.04, and, if the required federal waiver or waivers 4.26 are granted, the federal earned income tax credit under section 4.27 32 of the Internal Revenue Code; 4.28 (9) between the department of human services and the 4.29 Minnesota department of economic security for the purpose of 4.30 monitoring the eligibility of the data subject for reemployment 4.31 insurance, for any employment or training program administered, 4.32 supervised, or certified by that agency, for the purpose of 4.33 administering any rehabilitation program, whether alone or in 4.34 conjunction with the welfare system, or to monitor and evaluate 4.35 the statewide Minnesota family investment program by exchanging 4.36 data on recipients and former recipients of food stamps, cash 5.1 assistance under chapter 256, 256D, 256J, or 256K, child care 5.2 assistance under chapter 119B, or medical programs under chapter 5.3 256B, 256D, or 256L; 5.4 (10) to appropriate parties in connection with an emergency 5.5 if knowledge of the information is necessary to protect the 5.6 health or safety of the individual or other individuals or 5.7 persons; 5.8 (11) data maintained by residential programs as defined in 5.9 section 245A.02 may be disclosed to the protection and advocacy 5.10 system established in this state according to Part C of Public 5.11 Law Number 98-527 to protect the legal and human rights of 5.12 persons with mental retardation or other related conditions who 5.13 live in residential facilities for these persons if the 5.14 protection and advocacy system receives a complaint by or on 5.15 behalf of that person and the person does not have a legal 5.16 guardian or the state or a designee of the state is the legal 5.17 guardian of the person; 5.18 (12) to the county medical examiner or the county coroner 5.19 for identifying or locating relatives or friends of a deceased 5.20 person; 5.21 (13) data on a child support obligor who makes payments to 5.22 the public agency may be disclosed to the higher education 5.23 services office to the extent necessary to determine eligibility 5.24 under section 136A.121, subdivision 2, clause (5); 5.25 (14) participant social security numbers and names 5.26 collected by the telephone assistance program may be disclosed 5.27 to the department of revenue to conduct an electronic data match 5.28 with the property tax refund database to determine eligibility 5.29 under section 237.70, subdivision 4a; 5.30 (15) the current address of a recipient of aid to families 5.31 with dependent children or Minnesota family investment 5.32 program-statewide may be disclosed to law enforcement officers 5.33 who provide the name of the recipient and notify the agency that: 5.34 (i) the recipient: 5.35 (A) is a fugitive felon fleeing to avoid prosecution, or 5.36 custody or confinement after conviction, for a crime or attempt 6.1 to commit a crime that is a felony under the laws of the 6.2 jurisdiction from which the individual is fleeing; or 6.3 (B) is violating a condition of probation or parole imposed 6.4 under state or federal law; 6.5 (ii) the location or apprehension of the felon is within 6.6 the law enforcement officer's official duties; and 6.7 (iii) the request is made in writing and in the proper 6.8 exercise of those duties; 6.9 (16) the current address of a recipient of general 6.10 assistance or general assistance medical care may be disclosed 6.11 to probation officers and corrections agents who are supervising 6.12 the recipient and to law enforcement officers who are 6.13 investigating the recipient in connection with a felony level 6.14 offense; 6.15 (17) information obtained from food stamp applicant or 6.16 recipient households may be disclosed to local, state, or 6.17 federal law enforcement officials, upon their written request, 6.18 for the purpose of investigating an alleged violation of the 6.19 Food Stamp Act, according to Code of Federal Regulations, title 6.20 7, section 272.1(c); 6.21 (18) the address, social security number, and, if 6.22 available, photograph of any member of a household receiving 6.23 food stamps shall be made available, on request, to a local, 6.24 state, or federal law enforcement officer if the officer 6.25 furnishes the agency with the name of the member and notifies 6.26 the agency that: 6.27 (i) the member: 6.28 (A) is fleeing to avoid prosecution, or custody or 6.29 confinement after conviction, for a crime or attempt to commit a 6.30 crime that is a felony in the jurisdiction the member is 6.31 fleeing; 6.32 (B) is violating a condition of probation or parole imposed 6.33 under state or federal law; or 6.34 (C) has information that is necessary for the officer to 6.35 conduct an official duty related to conduct described in subitem 6.36 (A) or (B); 7.1 (ii) locating or apprehending the member is within the 7.2 officer's official duties; and 7.3 (iii) the request is made in writing and in the proper 7.4 exercise of the officer's official duty; 7.5 (19) certain information regarding child support obligors 7.6 who are in arrears may be made public according to section 7.7 518.575; 7.8 (20) data on child support payments made by a child support 7.9 obligor and data on the distribution of those payments excluding 7.10 identifying information on obligees may be disclosed to all 7.11 obligees to whom the obligor owes support, and data on the 7.12 enforcement actions undertaken by the public authority, the 7.13 status of those actions, and data on the income of the obligor 7.14 or obligee may be disclosed to the other party; 7.15 (21) data in the work reporting system may be disclosed 7.16 under section 256.998, subdivision 7; 7.17 (22) to the department of children, families, and learning 7.18 for the purpose of matching department of children, families, 7.19 and learning student data with public assistance data to 7.20 determine students eligible for free and reduced price meals, 7.21 meal supplements, and free milk according to United States Code, 7.22 title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773;to7.23produce accurate numbers of students receiving aid to families7.24with dependent children or Minnesota family investment7.25program-statewide as required by section 126C.06;to allocate 7.26 federal and state funds that are distributed based on income of 7.27 the student's family; and to verify receipt of energy assistance 7.28 for the telephone assistance plan; 7.29 (23) the current address and telephone number of program 7.30 recipients and emergency contacts may be released to the 7.31 commissioner of health or a local board of health as defined in 7.32 section 145A.02, subdivision 2, when the commissioner or local 7.33 board of health has reason to believe that a program recipient 7.34 is a disease case, carrier, suspect case, or at risk of illness, 7.35 and the data are necessary to locate the person; 7.36 (24) to other state agencies, statewide systems, and 8.1 political subdivisions of this state, including the attorney 8.2 general, and agencies of other states, interstate information 8.3 networks, federal agencies, and other entities as required by 8.4 federal regulation or law for the administration of the child 8.5 support enforcement program; 8.6 (25) to personnel of public assistance programs as defined 8.7 in section 256.741, for access to the child support system 8.8 database for the purpose of administration, including monitoring 8.9 and evaluation of those public assistance programs; or 8.10 (26) to monitor and evaluate the statewide Minnesota family 8.11 investment program by exchanging data between the departments of 8.12 human services and children, families, and learning, on 8.13 recipients and former recipients of food stamps, cash assistance 8.14 under chapter 256, 256D, 256J, or 256K, child care assistance 8.15 under chapter 119B, or medical programs under chapter 256B, 8.16 256D, or 256L. 8.17 (b) Information on persons who have been treated for drug 8.18 or alcohol abuse may only be disclosed according to the 8.19 requirements of Code of Federal Regulations, title 42, sections 8.20 2.1 to 2.67. 8.21 (c) Data provided to law enforcement agencies under 8.22 paragraph (a), clause (15), (16), (17), or (18), or paragraph 8.23 (b), are investigative data and are confidential or protected 8.24 nonpublic while the investigation is active. The data are 8.25 private after the investigation becomes inactive under section 8.26 13.82, subdivision 5, paragraph (a) or (b). 8.27 (d) Mental health data shall be treated as provided in 8.28 subdivisions 7, 8, and 9, but is not subject to the access 8.29 provisions of subdivision 10, paragraph (b). 8.30 (Effective date: Section 1 (13.46, subdivision 2) is 8.31 effective the day following final enactment.) 8.32 Sec. 2. Minnesota Statutes 1998, section 122A.61, 8.33 subdivision 1, is amended to read: 8.34 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 8.35 required to reserve an amount equal to at leastonetwo percent 8.36 of the basic revenue under section 126C.10, subdivision 2, for 9.1 in-service education for programs under section 120B.22, 9.2 subdivision 2, for staff development plans, including plans for 9.3 challenging instructional activities and experiences under 9.4 section 122A.60, and for curriculum development and programs, 9.5 other in-service education, teachers' workshops, teacher 9.6 conferences, the cost of substitute teachers staff development 9.7 purposes, and other related costs for staff development 9.8 efforts. Districts may expend an additional amount ofbasic9.9 unreserved revenue for staff development based on their 9.10 needs. With the exception of amounts reserved for staff 9.11 development from revenues allocated directly to school sites, 9.12 the board must initially allocate 50 percent of the reserved 9.13 revenue to each school site in the district on a per teacher 9.14 basis, which must be retained by the school site until used. 9.15 The board may retain 25 percent to be used for district wide 9.16 staff development efforts. The remaining 25 percent of the 9.17 revenue must be used to make grants to school sitesthat9.18demonstrate exemplary use of allocated staff development revenue9.19 for best practices methods. A grant may be used for any purpose 9.20 authorized under section 120B.22, subdivision 2, 122A.60, or for 9.21 the costs of curriculum development and programs, other 9.22 in-service education, teachers' workshops, teacher conferences, 9.23 substitute teachers for staff development purposes, and other 9.24 staff development efforts, and determined by the 9.25 sitedecision-makingprofessional development team. The 9.26 sitedecision-makingprofessional development team must 9.27 demonstrate to the school board the extent to which staff at the 9.28 site have met the outcomes of the program. The board may 9.29 withhold a portion of initial allocation of revenue if the staff 9.30 development outcomes are not being met. 9.31 Sec. 3. Minnesota Statutes 1998, section 123B.75, is 9.32 amended by adding a subdivision to read: 9.33 Subd. 6a. [INTEGRATION AID.] Integration aid received 9.34 under section 127A.45, subdivision 12a, must be recognized in 9.35 the same fiscal year as the integration levy. 9.36 (Effective date: Section 3 (123B.75, subdivision 6a) is 10.1 effective the day following final enactment.) 10.2 Sec. 4. Minnesota Statutes 1998, section 123B.92, 10.3 subdivision 9, is amended to read: 10.4 Subd. 9. [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 10.5 district's nonpublic pupil transportation aid for the 1996-1997 10.6 and later school years for transportation services for nonpublic 10.7 school pupils according to sections 123B.88, 123B.84 to 123B.86, 10.8 and this section, equals the sum of the amounts computed in 10.9 paragraphs (b) and (c). This aid does not limit the obligation 10.10 to transport pupils under sections 123B.84 to 123B.87. 10.11 (b) For regular and excess transportation according to 10.12 subdivision 1, paragraph (b), clauses (1) and (2), an amount 10.13 equal to the product of: 10.14 (1) the district's actual expenditure per pupil transported 10.15 in the regular and excess transportation categories during the 10.16 second preceding school year; times 10.17 (2) the number of nonpublic school pupils residing in the 10.18 district who receive regular or excess transportation service or 10.19 reimbursement for the current school year; times 10.20 (3) the ratio of the formula allowance pursuant to section 10.21 126C.10, subdivision 2, for the current school year to the 10.22 formula allowance pursuant to section 126C.10, subdivision 2, 10.23 for the second preceding school year. 10.24 (c) For nonpublic nonregular transportation according to 10.25 subdivision 1, paragraph (b), clause (5), an amount equal to the 10.26 product of: 10.27 (1) the district's actual expenditure for nonpublic 10.28 nonregular transportation during the second preceding school 10.29 year; times 10.30 (2) the ratio of the formula allowance pursuant to section 10.31 126C.10, subdivision 2, for the current school year to the 10.32 formula allowance pursuant to section 126C.10, subdivision 2, 10.33 for the second preceding school year. 10.34 (d) Notwithstanding the amount of the formula allowance for 10.35 fiscal years1997 and 19982000, 2001, and 2002 in section 10.36 126C.10, subdivision 2, the commissioner shall use the amount of 11.1 the formula allowance for the current yearless $300plus $87 in 11.2 determining the nonpublic pupil transportation revenue in 11.3 paragraphs (b) and (c) for fiscalyears 1997 and 1998year 2000, 11.4 and the amount of the formula allowance less $110 in determining 11.5 the nonpublic pupil transportation revenue in paragraphs (b) and 11.6 (c) for fiscal years 2001 and 2002. 11.7 Sec. 5. Minnesota Statutes 1998, section 124D.11, 11.8 subdivision 1, is amended to read: 11.9 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 11.10 education revenue must be paid to a charter school as though it 11.11 were a district. The general education revenue for 11.12 each adjusted marginal cost pupil unit is the state average 11.13 general education revenue per pupil unit, plus the referendum 11.14 equalization aid allowance in the pupil's district of residence, 11.15 minus an amount equal to the product of the formula allowance 11.16 according to section 126C.10, subdivision 2, times .0485, 11.17 calculated without basic skills revenue, transportation sparsity 11.18 revenue, and the transportation portion of the transition 11.19 revenue adjustment, plus basic skills revenue as though the 11.20 school were a school district. 11.21 Sec. 6. Minnesota Statutes 1998, section 124D.135, 11.22 subdivision 3, is amended to read: 11.23 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 11.24 obtain early childhood family education revenue, a district may 11.25 levy an amount equal to the tax rate of.45.54 percent times 11.26 the adjusted tax capacity of the district for the year preceding 11.27 the year the levy is certified. If the amount of the early 11.28 childhood family education levy would exceed the early childhood 11.29 family education revenue, the early childhood family education 11.30 levy must equal the early childhood family education revenue. 11.31 Sec. 7. Minnesota Statutes 1998, section 124D.20, 11.32 subdivision 5, is amended to read: 11.33 Subd. 5. [COMMUNITY EDUCATION LEVY.] To obtain community 11.34 education revenue, a district may levy the amount raised by a 11.35 tax rate of.41.49 percent times the adjusted net tax capacity 11.36 of the district. If the amount of the community education levy 12.1 would exceed the community education revenue, the community 12.2 education levy shall be determined according to subdivision 6. 12.3 Sec. 8. Minnesota Statutes 1998, section 124D.22, 12.4 subdivision 3, is amended to read: 12.5 Subd. 3. [EXTENDED DAY LEVY.] To obtain extended day 12.6 revenue, a school district may levy an amount equal to the 12.7 district's extended day revenue as defined in subdivision 2 12.8 multiplied by the lesser of one, or the ratio of the quotient 12.9 derived by dividing the adjusted net tax capacity of the 12.10 district for the year before the year the levy is certified by 12.11 theresidentadjusted marginal cost pupil units in the district 12.12 for the school year to which the levy is attributable, 12.13 to$3,767$3,166. 12.14 Sec. 9. Minnesota Statutes 1998, section 124D.65, 12.15 subdivision 1, is amended to read: 12.16 Subdivision 1. [ADJUSTED LEP BASE REVENUE.] (a) A 12.17 district's adjusted limited English proficiency programs base 12.18 revenue for fiscal year1996 and later2000 equals the product 12.19 of: 12.20 (1) the district's base revenue for limited English 12.21 proficiency programs under this section and section 125A.77, 12.22 times 12.23 (2) the ratio of: 12.24 (i) the greater of 20 or the number of pupils of limited 12.25 English proficiency enrolled in the district during the current 12.26 fiscal year to 12.27 (ii) the greater of 20 or the number of pupils of limited 12.28 English proficiency enrolled in the district during the base 12.29 year. 12.30 (b) For the purposes of this section, the base year for 12.31 fiscal year 1996 is fiscal year 1995. The base year for later 12.32 fiscal years is the second fiscal year preceding the fiscal year 12.33 for which aid shall be paid. The current year is the fiscal 12.34 year for which aid shall be paid. 12.35 (c) For the purposes of this section, a teacher includes 12.36 nonlicensed personnel who provide direct instruction to students 13.1 of limited English proficiency under the supervision of a 13.2 licensed teacher. 13.3 Sec. 10. Minnesota Statutes 1998, section 124D.65, 13.4 subdivision 5, is amended to read: 13.5 Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a) A school 13.6 district's limited English proficiency programs revenue for 13.7 fiscal year1996 and later2000 equals the state total limited 13.8 English proficiency programs revenue, minus the amount 13.9 determined under paragraph (b), times the ratio of the 13.10 district's adjusted limited English proficiency programs base 13.11 revenue to the state total adjusted limited English proficiency 13.12 programs base revenue. 13.13 (b) Notwithstanding paragraph (a), if the limited English 13.14 proficiency programs base revenue for a district equals zero, 13.15 the limited English proficiency programs revenue equals the sum 13.16 of the following amounts, computed using current year data: 13.17 (1) 68 percent of the salary of one full-time equivalent 13.18 teacher for each 40 pupils of limited English proficiency 13.19 enrolled, or 68 percent of the salary of one-half of a full-time 13.20 teacher in a district with 20 or fewer pupils of limited English 13.21 proficiency enrolled; and 13.22 (2) for supplies and equipment purchased or rented for use 13.23 in the instruction of pupils of limited English proficiency an 13.24 amount equal to 47 percent of the sum actually spent by the 13.25 district but not to exceed an average of $47 in any one school 13.26 year for each pupil of limited English proficiency receiving 13.27 instruction. 13.28 (c) A district's limited English proficiency programs 13.29 revenue for fiscal year 2001 and later equals the product of 13.30 $584 times the greater of 20 or the number of adjusted marginal 13.31 cost pupils of limited English proficiency enrolled in the 13.32 district during the current fiscal year. 13.33 Sec. 11. Minnesota Statutes 1998, section 124D.68, 13.34 subdivision 9, is amended to read: 13.35 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 13.36 attending an eligible program full time under subdivision 3, 14.1 paragraph (d), the department must pay 90 percent of the 14.2 district's average general education revenue lesscompensatory14.3 basic skills revenue to the eligible program and ten percent of 14.4 the district's average general education revenue 14.5 lesscompensatorybasic skills revenue to the resident district 14.6 within 30 days after the eligible program verifies enrollment 14.7 using the form provided by the department. For a pupil 14.8 attending an eligible program part time, revenue shall be 14.9 reduced proportionately, according to the amount of time the 14.10 pupil attends the program, and the payments to the eligible 14.11 program and the resident district shall be reduced accordingly. 14.12 A pupil for whom payment is made according to this section may 14.13 not be counted by any district for any purpose other than 14.14 computation of general education revenue. If payment is made 14.15 for a pupil under this subdivision, a district shall not 14.16 reimburse a program under section 124D.69 for the same 14.17 pupil.CompensatoryBasic skills revenue shall be paid 14.18 according to section 126C.10, subdivision34. 14.19 (b) The department must pay up to 100 percent of the 14.20 revenue to the eligible program if there is an agreement to that 14.21 effect between the school district and the eligible program. 14.22 Sec. 12. Minnesota Statutes 1998, section 124D.69, 14.23 subdivision 1, is amended to read: 14.24 Subdivision 1. [AID.] If a pupil enrolls in an alternative 14.25 program, eligible under section 124D.68, subdivision 3, 14.26 paragraph (d), or subdivision 4, operated by a private 14.27 organization that has contracted with a school district to 14.28 provide educational services for eligible pupils under section 14.29 124D.68, subdivision 2, the district contracting with the 14.30 private organization must reimburse the provider an amount equal 14.31 to at least 90 percent of the district's average general 14.32 education lesscompensatorybasic skills revenue per pupil unit 14.33 times the number of pupil units for pupils attending the 14.34 program. Basic skills revenue shall be paid according to 14.35 section 126C.10, subdivision 4. Compensatory revenue must be 14.36 allocated according to section 126C.15, subdivision 2. For a 15.1 pupil attending the program part time, the revenue paid to the 15.2 program must be reduced proportionately, according to the amount 15.3 of time the pupil attends the program, and revenue paid to the 15.4 district shall be reduced accordingly. Pupils for whom a 15.5 district provides reimbursement may not be counted by the 15.6 district for any purpose other than computation of general 15.7 education revenue. If payment is made to a district or program 15.8 for a pupil under this section, the department must not make a 15.9 payment for the same pupil under section 124D.68, subdivision 9. 15.10 Sec. 13. Minnesota Statutes 1998, section 124D.86, 15.11 subdivision 3, is amended to read: 15.12 Subd. 3. [INTEGRATION REVENUE.] For fiscal year19992000 15.13 and later fiscal years, integration revenue equals the following 15.14 amounts: 15.15 (1) for independent school district No. 709, 15.16 Duluth,$193$201 times theresidentadjusted pupil units for 15.17 the school year; 15.18 (2) for independent school district No. 625, St. 15.19 Paul,$427$437 times theresidentadjusted pupil units for the 15.20 school year; 15.21 (3) for special school district No. 1, 15.22 Minneapolis,$523$533 times theresidentadjusted pupil units 15.23 for the school year;and15.24 (4) for a district not listed in clause (1), (2), or (3) 15.25 that is required to implement a plan according to the 15.26 requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 15.27 the lesser of the actual cost of implementing the plan during 15.28 the fiscal year or $93 times theresidentadjusted pupil units 15.29 for the school year; and 15.30 (5) for any district not otherwise qualified to receive 15.31 revenue under this subdivision, $93 per adjusted pupil unit 15.32 attending an interdistrict magnet school. Revenue under this 15.33 clause must follow the pupil to the serving program. 15.34 Sec. 14. Minnesota Statutes 1998, section 126C.05, 15.35 subdivision 1, is amended to read: 15.36 Subdivision 1. [PUPIL UNIT.] Pupil units for each 16.1 Minnesota resident pupil in average daily membership enrolled in 16.2 the district of residence, in another district under sections 16.3 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 16.4 124D.68; in a charter school under section 124D.10; or for whom 16.5 the resident district pays tuition under section 123A.18, 16.6 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 16.7 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 16.8 125A.65, shall be counted according to this subdivision. 16.9 (a) A prekindergarten pupil with a disability who is 16.10 enrolled in a program approved by the commissioner and has an 16.11 individual education plan is counted as the ratio of the number 16.12 of hours of assessment and education service to 825 with a 16.13 minimum of 0.28, but not more than one. 16.14 (b) A prekindergarten pupil who is assessed but determined 16.15 not to be handicapped is counted as the ratio of the number of 16.16 hours of assessment service to 825. 16.17 (c) A kindergarten pupil with a disability who is enrolled 16.18 in a program approved by the commissioner is counted as the 16.19 ratio of the number of hours of assessment and education 16.20 services required in the fiscal year by the pupil's individual 16.21 education program plan to 875, but not more than one. 16.22 (d) A kindergarten pupil who is not included in paragraph 16.23 (c) is counted as.53.552 of a pupil unit for fiscal year199516.24 2000 and thereafter. 16.25 (e) A pupil who is in any of grades 1 to 3 is counted as 16.26 1.102 pupil units for fiscal year 2000 and thereafter. 16.27 (f) A pupil who is any of grades 4 to 6 is counted as 1.06 16.28 pupil units for fiscal year 1995 and thereafter. 16.29(f)(g) A pupil who is in any of grades 7 to 12 is counted 16.30 as 1.3 pupil units. 16.31(g)(h) A pupil who is in the post-secondary enrollment 16.32 options program is counted as 1.3 pupil units. 16.33 Sec. 15. Minnesota Statutes 1998, section 126C.05, 16.34 subdivision 3, is amended to read: 16.35 Subd. 3. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 16.36 revenue pupil units for fiscal year 1998 and thereafter must be 17.1 computed according to this subdivision. 17.2 (a) The compensation revenue concentration percentage for 17.3 each building in a district equals the product of 100 times the 17.4 ratio of: 17.5 (1) the sum of the number of pupils enrolled in the 17.6 building eligible to receive free lunch plus one-half of the 17.7 pupils eligible to receive reduced priced lunch on October 1 of 17.8 the previous fiscal year; to 17.9 (2) the number of pupils enrolled in the building on 17.10 October 1 of the previous fiscal year. 17.11 (b) The compensation revenue pupil weighting factor for a 17.12 building equals the lesser of one or the quotient obtained by 17.13 dividing the building's compensation revenue concentration 17.14 percentage by 80.0. 17.15 (c) The compensation revenue pupil units for a building 17.16 equals the product of: 17.17 (1) the sum of the number of pupils enrolled in the 17.18 building eligible to receive free lunch and one-half of the 17.19 pupils eligible to receive reduced priced lunch on October 1 of 17.20 the previous fiscal year; times 17.21 (2) the compensation revenue pupil weighting factor for the 17.22 building; times 17.23 (3) .60. 17.24 (d) Notwithstanding paragraphs (a) to (c), for charter 17.25 schools and contracted alternative programs in the first year of 17.26 operation, compensation revenue pupil units shall be computed 17.27 using data for the current fiscal year. If the charter school 17.28 or contracted alternative program begins operation after October 17.29 1, compensatory revenue pupil units shall be computed based on 17.30 pupils enrolled on an alternate date determined by the 17.31 commissioner, and the compensation revenue pupil units shall be 17.32 prorated based on the ratio of the number of days of student 17.33 instruction to 170 days. 17.34 (e) The percentages in this subdivision must be based on 17.35 the count of individual pupils and not on a building average or 17.36 minimum. 18.1 Sec. 16. Minnesota Statutes 1998, section 126C.05, 18.2 subdivision 5, is amended to read: 18.3 Subd. 5. [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 18.4 for a district or charter school means the sum of: 18.5 (1) the number ofresidentpupil units served, according to 18.6 subdivision1g7, plus 18.7 (2)shared time pupil units, according to section 126C.01,18.8subdivision 6, plus18.9(3)pupil units according to subdivision 1 forpupils18.10attending the district for which general education aid18.11adjustments are made according to section 127A.47, subdivision18.127; minus18.13(4) pupil units according to subdivision 1 for resident18.14pupils attending other districts for which general education aid18.15adjustments are made according to section 127A.47, subdivision 7.18.16 whom the district or charter school pays tuition under section 18.17 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 18.18 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 18.19 125A.65, minus 18.20 (3) pupil units according to subdivision 1 for whom the 18.21 district or charter school receives tuition under section 18.22 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 18.23 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 18.24 125A.65. 18.25 (b) Adjusted marginal cost pupil units means the sum of .9 18.26 times the pupil units defined in paragraph (a) for the current 18.27 school year and .1 times the pupil units defined in paragraph 18.28 (a) for the previous school year. 18.29 Sec. 17. Minnesota Statutes 1998, section 126C.05, 18.30 subdivision 6, is amended to read: 18.31 Subd. 6. [RESIDENT PUPIL UNITS.] (a) Resident pupil units 18.32 for a district means the number of pupil units according to 18.33 subdivision 1 residing in the district. 18.34 (b) Resident marginal cost pupil units means the sum of .9 18.35 times the pupil units defined in paragraph (a) for the current 18.36 year and .1 times the pupil units defined in paragraph (a) for 19.1 the previous school year. 19.2 Sec. 18. Minnesota Statutes 1998, section 126C.05, 19.3 subdivision 7, is amended to read: 19.4 Subd. 7. [PUPIL UNITS SERVED.] Pupil units served for a 19.5 district or charter school means the number of pupil units 19.6 according to subdivision 1 enrolled in the district or charter 19.7 school. 19.8 Sec. 19. Minnesota Statutes 1998, section 126C.10, 19.9 subdivision 1, is amended to read: 19.10 Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal 19.11 year19992000 and thereafter, the general education revenue for 19.12 each district equals the sum of the district's basic revenue, 19.13 basic skills revenue, training and experience revenue, secondary 19.14 sparsity revenue, elementary sparsity revenue, transportation 19.15 sparsity revenue, total operating capital revenue,graduation19.16standards implementation revenue,equity revenue, transition 19.17 revenue, and supplemental revenue. 19.18 Sec. 20. Minnesota Statutes 1998, section 126C.10, 19.19 subdivision 2, is amended to read: 19.20 Subd. 2. [BASIC REVENUE.] The basic revenue for each 19.21 district equals the formula allowance times the sum of the 19.22residentadjusted marginal cost pupil units plus .25 times the 19.23 pupil units for prekindergarten pupils with a disability under 19.24 section 126C.05, subdivision 1, paragraphs (a) and (b), for the 19.25 school year. The formula allowance for fiscal year1997 is19.26$3,505. The formula allowance for fiscal year 1998 is $3,58119.27and the formula allowance for fiscal year1999and fiscal year19.282000is $3,530. The formula allowance for fiscal year 2000 is 19.29 $3,731. The formula allowance for fiscal year 2001 and 19.30 subsequent fiscal years is$3,597$3,921. 19.31 Sec. 21. Minnesota Statutes 1998, section 126C.10, 19.32 subdivision 4, is amended to read: 19.33 Subd. 4. [BASIC SKILLS REVENUE.] For fiscal year 1999 and 19.34 thereafter, a school district's basic skills revenue equals the 19.35 sum of: 19.36 (1) compensatory revenue under subdivision 3; plus 20.1 (2) limited English proficiency revenue according to 20.2 section 124D.65, subdivision 5; plus 20.3 (3) $190 times the limited English proficiency pupil units 20.4 according to section 126C.05, subdivision 17; plus 20.5 (4)the lesser of: (i)$22.50 times the number of adjusted 20.6 marginal cost pupil units in kindergarten to grade 8; or (ii)20.7the amount of district money provided to match basic skills20.8revenue for the purposes described in section 126C.15. 20.9 Sec. 22. Minnesota Statutes 1998, section 126C.10, 20.10 subdivision 5, is amended to read: 20.11 Subd. 5. [TRAINING AND EXPERIENCE REVENUE.] The training 20.12 and experience revenue for each district equals the greater of 20.13 zero or the result of the following computation: 20.14 (1) subtract .8 from the training and experience index; 20.15 (2) multiply the result in clause (1) by the product of 20.16 $660 times theresidentadjusted marginal cost pupil units for 20.17 the school year. 20.18 Sec. 23. Minnesota Statutes 1998, section 126C.10, 20.19 subdivision 6, is amended to read: 20.20 Subd. 6. [DEFINITIONS.] The definitions in this 20.21 subdivision apply only to subdivisions 7 and 8. 20.22 (a) "High school" means a secondary school that has pupils 20.23 enrolled in at least the 10th, 11th, and 12th grades. If there 20.24 is no secondary school in the district that has pupils enrolled 20.25 in at least the 10th, 11th, and 12th grades, and the school is 20.26 at least 19 miles from the next nearest school, the commissioner 20.27 must designate one school in the district as a high school for 20.28 the purposes of this section. 20.29 (b) "Secondary average daily membership" means, for a 20.30 district that has only one high school, the average daily 20.31 membership ofresidentpupils served in grades 7 through 12. 20.32 For a district that has more than one high school, "secondary 20.33 average daily membership" for each high school means the product 20.34 of the average daily membership ofresidentpupils served in 20.35 grades 7 through 12 in the high school, times the ratio of six 20.36 to the number of grades in the high school. 21.1 (c) "Attendance area" means the total surface area of the 21.2 district, in square miles, divided by the number of high schools 21.3 in the district. For a district that does not operate a high 21.4 school and is less than 19 miles from the nearest operating high 21.5 school, the attendance area equals zero. 21.6 (d) "Isolation index" for a high school means the square 21.7 root of 55 percent of the attendance area plus the distance in 21.8 miles, according to the usually traveled routes, between the 21.9 high school and the nearest high school. For a district in 21.10 which there is located land defined in section 84A.01, 84A.20, 21.11 or 84A.31, the distance in miles is the sum of: 21.12 (1) the square root of one-half of the attendance area; and 21.13 (2) the distance from the border of the district to the 21.14 nearest high school. 21.15 (e) "Qualifying high school" means a high school that has 21.16 an isolation index greater than 23 and that has secondary 21.17 average daily membership of less than 400. 21.18 (f) "Qualifying elementary school" means an elementary 21.19 school that is located 19 miles or more from the nearest 21.20 elementary school or from the nearest elementary school within 21.21 the district and, in either case, has an elementary average 21.22 daily membership of an average of 20 or fewer per grade. 21.23 (g) "Elementary average daily membership" means, for a 21.24 district that has only one elementary school, the average daily 21.25 membership ofresidentpupils served in kindergarten through 21.26 grade 6. For a district that has more than one elementary 21.27 school, "average daily membership" for each school means the 21.28 average daily membership of pupils served in kindergarten 21.29 through grade 6 multiplied by the ratio of seven to the number 21.30 of grades in the elementary school.For a building in a21.31district where the nearest elementary school is at least 6521.32miles distant, pupils served must be used to determine average21.33daily membership.21.34 Sec. 24. Minnesota Statutes 1998, section 126C.10, 21.35 subdivision 7, is amended to read: 21.36 Subd. 7. [SECONDARY SPARSITY REVENUE.] (a) A district's 22.1 secondary sparsity revenue for a school year equals the sum of 22.2 the results of the following calculation for each qualifying 22.3 high school in the district: 22.4 (1) the formula allowance for the school year, multiplied 22.5 by 22.6 (2) the secondary average daily membership of pupils served 22.7 in the high school, multiplied by 22.8 (3) the quotient obtained by dividing 400 minus the 22.9 secondary average daily membership by 400 plus the secondary 22.10 daily membership, multiplied by 22.11 (4) the lesser of 1.5 or the quotient obtained by dividing 22.12 the isolation index minus 23 by ten. 22.13 (b) A newly formed district that is the result of districts 22.14 combining under the cooperation and combination program or 22.15 consolidating under section 123A.48 must receive secondary 22.16 sparsity revenue equal to the greater of: (1) the amount 22.17 calculated under paragraph (a) for the combined district; or (2) 22.18 the sum of the amounts of secondary sparsity revenue the former 22.19 districts had in the year prior to consolidation, increased for 22.20 any subsequent changes in the secondary sparsity formula. 22.21 Sec. 25. Minnesota Statutes 1998, section 126C.10, 22.22 subdivision 8, is amended to read: 22.23 Subd. 8. [ELEMENTARY SPARSITY REVENUE.] A district's 22.24 elementary sparsity revenue equals the sum of the following 22.25 amounts for each qualifying elementary school in the district: 22.26 (1) the formula allowance for the year, multiplied by 22.27 (2) the elementary average daily membership of pupils 22.28 served in the school, multiplied by 22.29 (3) the quotient obtained by dividing 140 minus the 22.30 elementary average daily membership by 140 plus the average 22.31 daily membership. 22.32 Sec. 26. Minnesota Statutes 1998, section 126C.10, 22.33 subdivision 9, is amended to read: 22.34 Subd. 9. [SUPPLEMENTAL REVENUE.] (a) A district's 22.35 supplemental revenue allowance for fiscal year 1994 and later 22.36 fiscal years equals the district's supplemental revenue for 23.1 fiscal year 1993 divided by the district's 1992-1993 resident 23.2 pupil units. 23.3 (b) A district's supplemental revenue allowance is reduced 23.4 for fiscal year 1995 and later according to subdivision 12. 23.5 (c) A district's supplemental revenue equals the 23.6 supplemental revenue allowance, if any, times itsresident23.7 adjusted marginal cost pupil units for that year. 23.8 (d) A district may cancel its supplemental revenue by 23.9 notifying the commissioner of education prior to June 30, 1994. 23.10 A district that is reorganizing under section 122A.35, 123A.46, 23.11 or 123A.48 may cancel its supplemental revenue by notifying the 23.12 commissioner of children, families, and learning before July 1 23.13 of the year of the reorganization. If a district cancels its 23.14 supplemental revenue according to this paragraph, its 23.15 supplemental revenue allowance for fiscal year 1993 for purposes 23.16 of subdivision 12 and section 124A.03, subdivision 3b, equals 23.17 zero. 23.18 Sec. 27. Minnesota Statutes 1998, section 126C.10, 23.19 subdivision 10, is amended to read: 23.20 Subd. 10. [SUPPLEMENTAL LEVY.] To obtain supplemental 23.21 revenue, a district may levy an amount not more than the product 23.22 of its supplemental revenue for the school year times the lesser 23.23 of one or the ratio of its adjusted net tax capacity per 23.24residentadjusted marginal cost pupil unit to$10,000$8,404. 23.25 Sec. 28. Minnesota Statutes 1998, section 126C.10, is 23.26 amended by adding a subdivision to read: 23.27 Subd. 12a. [SUPPLEMENTAL REVENUE REDUCTION.] If a 23.28 district's ratio of 1992 adjusted net tax capacity divided by 23.29 1994-1995 actual pupil units to $9,025 is less than or equal to 23.30 .25, then the difference under subdivision 12, clause (2), is 23.31 equal to $0 for purposes of computing the district's 23.32 supplemental revenue under subdivision 9. 23.33 Sec. 29. Minnesota Statutes 1998, section 126C.10, 23.34 subdivision 13, is amended to read: 23.35 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 23.36 fiscal year19992000 and thereafter, total operating capital 24.1 revenue for a district equals the amount determined under 24.2 paragraph (b) or (c), plus $68 times theresidentadjusted 24.3 marginal cost pupil units for the school year. The revenue must 24.4 be placed in a reserved account in the general fund and may only 24.5 be used according to subdivision 14. 24.6 (b) For fiscal years19992000 and later, capital revenue 24.7 for a district equals $100 times the district's maintenance cost 24.8 index times itsresidentadjusted marginal cost pupil units for 24.9 the school year. 24.10 (c)For 1996 and later fiscal years, the previous formula24.11revenue for a district equals $128 times its resident pupil24.12units for the school year.24.13(d)For fiscal years19982000 and later, the revenue for a 24.14 district that operates a program under section 124D.128, is 24.15 increased by an amount equal to $30 times the number ofresident24.16 marginal cost pupil units served at the site where the program 24.17 is implemented. 24.18 Sec. 30. Minnesota Statutes 1998, section 126C.10, 24.19 subdivision 14, is amended to read: 24.20 Subd. 14. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 24.21 operating capital revenue may be used only for the following 24.22 purposes: 24.23 (1) to acquire land for school purposes; 24.24 (2) to acquire or construct buildings for school purposes; 24.25 (3) to rent or lease buildings, including the costs of 24.26 building repair or improvement that are part of a lease 24.27 agreement; 24.28 (4) to improve and repair school sites and buildings, and 24.29 equip or reequip school buildings with permanent attached 24.30 fixtures; 24.31 (5) for a surplus school building that is used 24.32 substantially for a public nonschool purpose; 24.33 (6) to eliminate barriers or increase access to school 24.34 buildings by individuals with a disability; 24.35 (7) to bring school buildings into compliance with the 24.36 Uniform Fire Code adopted according to chapter 299F; 25.1 (8) to remove asbestos from school buildings, encapsulate 25.2 asbestos, or make asbestos-related repairs; 25.3 (9) to clean up and dispose of polychlorinated biphenyls 25.4 found in school buildings; 25.5 (10) to clean up, remove, dispose of, and make repairs 25.6 related to storing heating fuel or transportation fuels such as 25.7 alcohol, gasoline, fuel oil, and special fuel, as defined in 25.8 section 296A.01; 25.9 (11) for energy audits for school buildings and to modify 25.10 buildings if the audit indicates the cost of the modification 25.11 can be recovered within ten years; 25.12 (12) to improve buildings that are leased according to 25.13 section 123B.51, subdivision 4; 25.14 (13) to pay special assessments levied against school 25.15 property but not to pay assessments for service charges; 25.16 (14) to pay principal and interest on state loans for 25.17 energy conservation according to section 216C.37 or loans made 25.18 under the Northeast Minnesota Economic Protection Trust Fund Act 25.19 according to sections 298.292 to 298.298; 25.20 (15) to purchase or lease interactive telecommunications 25.21 equipment; 25.22 (16) by board resolution, to transfer money into the debt 25.23 redemption fund to: (i) pay the amounts needed to meet, when 25.24 due, principal and interest payments on certain obligations 25.25 issued according to chapter 475; or (ii) pay principal and 25.26 interest on debt service loans or capital loans according to 25.27 section 126C.70; 25.28 (17) to paycapital expenditure equipment-relatedoperating 25.29 capital-related assessments of any entity formed under a 25.30 cooperative agreement between two or more districts; 25.31 (18) to purchase or lease computers and related materials, 25.32 copying machines, telecommunications equipment, and other 25.33 noninstructional equipment; 25.34 (19) to purchase or lease assistive technology or equipment 25.35 for instructional programs; 25.36 (20) to purchase textbooks; 26.1 (21) to purchase new and replacement library books or 26.2 technology; 26.3 (22) to purchase vehicles; 26.4 (23) to purchase or lease telecommunications equipment, 26.5 computers, and related equipment for integrated information 26.6 management systems for: 26.7 (i) managing and reporting learner outcome information for 26.8 all students under a results-oriented graduation rule; 26.9 (ii) managing student assessment, services, and achievement 26.10 information required for students with individual education 26.11 plans; and 26.12 (iii) other classroom information management needs; and 26.13 (24) to pay personnel costs directly related to the 26.14 acquisition, operation, and maintenance of telecommunications 26.15 systems, computers, related equipment, and network and 26.16 applications software. 26.17 Sec. 31. Minnesota Statutes 1998, section 126C.10, 26.18 subdivision 18, is amended to read: 26.19 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 26.20 A district's transportation sparsity allowance equals the 26.21 greater of zero or the result of the following computation: 26.22 (i) Multiply the formula allowance according to subdivision 26.23 2, by .1469. 26.24 (ii) Multiply the result in clause (i) by the district's 26.25 sparsity index raised to the 26/100 power. 26.26 (iii) Multiply the result in clause (ii) by the district's 26.27 density index raised to the 13/100 power. 26.28 (iv) Multiply the formula allowance according to 26.29 subdivision 2, by .0485. 26.30 (v) Subtract the result in clause (iv) from the result in 26.31 clause (iii). 26.32 (b) Transportation sparsity revenue is equal to the 26.33 transportation sparsity allowance times theresidentadjusted 26.34 marginal cost pupil units. 26.35 Sec. 32. Minnesota Statutes 1998, section 126C.10, 26.36 subdivision 19, is amended to read: 27.1 Subd. 19. [TRANSITION ALLOWANCE.] (a) A district's 27.2 transportation transition allowance for fiscal year19982000 27.3 and later equals the result of the following: 27.4 (1) if the result in subdivision 18, paragraph (a), clause 27.5 (iii), for fiscal year 1998 is less than the fiscal year 1996 27.6 base allowance, the transportation transition allowance equals 27.7 the fiscal year 1996 base allowance minus the result in 27.8 subdivision 18, paragraph (a), clause (iii); or 27.9 (2) if the result in subdivision 18, paragraph (a), clause 27.10 (iii), for fiscal year 1998 and later is greater than or equal 27.11 to the fiscal year 1996 base allowance, the transportation 27.12 transition allowance equals zero. 27.13 (b) A district's compensatory transition allowance equals 27.14 the greater of zero or the difference between: 27.15 (1) the amount of compensatory revenue the district would 27.16 have received under Minnesota Statutes 1996, section 124A.22, 27.17 subdivision 3, for fiscal year 1998 computed using a basic 27.18 formula allowance of $3,281; and 27.19 (2) the amount the district receives under subdivision 3; 27.20 divided by 27.21 (3) the district'sactualadjusted marginal cost pupil 27.22 units for fiscal year 1998. 27.23 (c) A district's cooperation transition allowance for 27.24 fiscal year 2001 and later equals the greater of zero or the 27.25 difference between: 27.26 (1) $25,000; and 27.27 (2) $67 times the district'sresidentadjusted marginal 27.28 cost pupil units for fiscal year 2001 divided by; 27.29 (3) the district's adjusted marginal cost pupil units for 27.30 fiscal year 2001. 27.31 (d) A district's transition allowance for fiscal year199927.32 2000 is equal to the sum of its transportation transition 27.33 allowance and its compensatory transition allowance. A 27.34 district's transition allowance for fiscal year20002001 and 27.35 thereafter is equal to the sum of its transportation transition 27.36 allowance, its compensatory transition allowance, and its 28.1 cooperation transition allowance. 28.2 Sec. 33. Minnesota Statutes 1998, section 126C.10, 28.3 subdivision 20, is amended to read: 28.4 Subd. 20. [TRANSITION REVENUE ADJUSTMENT.] A district's 28.5 transition revenue adjustment equals the district's transition 28.6 allowance times theresidentadjusted marginal cost pupil units 28.7 for the school year. 28.8 Sec. 34. Minnesota Statutes 1998, section 126C.10, 28.9 subdivision 21, is amended to read: 28.10 Subd. 21. [TRANSITION LEVY ADJUSTMENT.] A district's 28.11 general education levy shall be adjusted by an amount equal to 28.12 the district's transition revenue times the lesser of 1 or the 28.13 ratio of its adjusted net tax capacity perresidentadjusted 28.14 marginal cost pupil unit to$10,000$8,404. 28.15 Sec. 35. Minnesota Statutes 1998, section 126C.10, is 28.16 amended by adding a subdivision to read: 28.17 Subd. 23. [EQUITY REVENUE.] (a) A school district 28.18 qualifies for equity revenue if the school district's adjusted 28.19 marginal cost pupil unit amount of basic revenue, supplemental 28.20 revenue, transition revenue, and referendum revenue is less than 28.21 the 95th percentile of school districts in its equity region for 28.22 those revenue categories and the school district's 28.23 administrative offices are not located in a city of the first 28.24 class on July 1, 1999. 28.25 (b) Equity revenue for a qualifying district that receives 28.26 referendum revenue under section 126C.17, subdivision 4, equals 28.27 the product of (1) the district's adjusted marginal cost pupil 28.28 units for that year; times (2) the sum of (i) $10, plus (ii) 28.29 $35, times the school district's equity index computed under 28.30 section 126C.10, subdivision 6. 28.31 (c) Equity revenue for a qualifying district that does not 28.32 receive referendum revenue under section 126C.17, subdivision 4, 28.33 equals the product of the district's adjusted marginal cost 28.34 pupil units for that year times $10. 28.35 Sec. 36. Minnesota Statutes 1998, section 126C.10, is 28.36 amended by adding a subdivision to read: 29.1 Subd. 24. [REGIONAL EQUITY GAP.] The regional equity gap 29.2 equals the difference between the fifth and the 95th percentile 29.3 of adjusted general revenue per marginal cost pupil unit. 29.4 Sec. 37. Minnesota Statutes 1998, section 126C.10, is 29.5 amended by adding a subdivision to read: 29.6 Subd. 25. [DISTRICT EQUITY GAP.] A district's equity gap 29.7 equals the greater of zero or the difference between the 29.8 district's adjusted general revenue and the regional 95th 29.9 percentile of adjusted general revenue per marginal cost pupil 29.10 unit. 29.11 Sec. 38. Minnesota Statutes 1998, section 126C.10, is 29.12 amended by adding a subdivision to read: 29.13 Subd. 26. [DISTRICT EQUITY INDEX.] A district's equity 29.14 index equals the ratio of the sum of the district equity gap 29.15 amount to the regional equity gap amount. 29.16 Sec. 39. Minnesota Statutes 1998, section 126C.10, is 29.17 amended by adding a subdivision to read: 29.18 Subd. 27. [EQUITY REGION.] For the purposes of computing 29.19 equity revenue under subdivision 23, a district whose 29.20 administrative offices on July 1, 1999, is located in Anoka, 29.21 Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 29.22 part of the metro equity region. Districts whose administrative 29.23 offices on July 1, 1999, are not located in Anoka, Carver, 29.24 Dakota, Hennepin, Ramsey, Scott, or Washington county are part 29.25 of the rural equity region. 29.26 Sec. 40. Minnesota Statutes 1998, section 126C.12, 29.27 subdivision 1, is amended to read: 29.28 Subdivision 1. [REVENUE.] Of a district's general 29.29 education revenuean amount equal to the sum of the number of29.30elementary fund balance pupils in average daily membership29.31defined in section 126C.05, subdivision 5, and one-half of the29.32number of kindergarten fund balance pupils in average daily29.33membership as defined in section 126C.05, subdivision 5, times29.34.06 for fiscal year 1995 and thereafter times the formula29.35allowance must be reserved according to this section.for fiscal 29.36 year 2000 and thereafter each school district shall reserve an 30.1 amount equal to the formula allowance multiplied by the 30.2 following calculation: 30.3 (1) the sum of adjusted marginal cost pupil units in 30.4 average daily membership, according to section 126C.05, 30.5 subdivision 5, in kindergarten times .052; plus 30.6 (2) the sum of adjusted marginal cost pupil units in 30.7 average daily membership, according to section 126C.05, 30.8 subdivision 5, in grades 1 to 3 times .102; plus 30.9 (3) the sum of adjusted marginal cost pupil units in 30.10 average daily membership, according to section 126C.05, 30.11 subdivision 5, in grades 4 to 6 times .06. 30.12 Sec. 41. Minnesota Statutes 1998, section 126C.12, 30.13 subdivision 4, is amended to read: 30.14 Subd. 4. [REVENUE USE.] (a) Revenue must be used according 30.15 to either paragraph (b) or (c). 30.16 (b) Revenue must be used to reduce and maintain the 30.17 district's instructor to learner ratios in kindergarten through 30.18 grade 6 to a level of 1 to 17 on average. The district must 30.19 prioritize the use of the revenue to attain this level initially 30.20 in kindergarten and grade 1 and then through the subsequent 30.21 grades as revenue is available. 30.22 (c) The revenue may be used to prepare and use an 30.23 individualized learning plan for each learner. A district must 30.24 not increase the district wide instructor-to-learner ratios in 30.25 other grades as a result of reducing instructor-to-learner 30.26 ratios in kindergarten through grade 6. Revenue may not be used 30.27 to provide instructor preparation timeor to provide the30.28district's share of revenue required under section 124D.67. A 30.29 district may use a portion of the revenue reserved under this 30.30 section to employ up to the same number of full-time equivalent 30.31 education assistants or aides as the district employed during 30.32 the 1992-1993 school year under Minnesota Statutes 1992, section 30.33 124.331, subdivision 2. 30.34 Sec. 42. Minnesota Statutes 1998, section 126C.13, 30.35 subdivision 1, is amended to read: 30.36 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 31.1 commissioner must establish the general education tax rate by 31.2 July 1 of each year for levies payable in the following year. 31.3 The general education tax capacity rate must be a rate, rounded 31.4 up to the nearest hundredth of a percent, that, when applied to 31.5 the adjusted net tax capacity for all districts, raises the 31.6 amount specified in this subdivision. The general education tax 31.7 rate must be the rate that raises$1,385,500,000 for fiscal year31.81999, $1,325,500,000 for fiscal year 2000, and $1,387,100,00031.9 $1,331,186,000 for fiscal year 2001, and later fiscal years. 31.10 The general education tax rate may not be changed due to changes 31.11 or corrections made to a district's adjusted net tax capacity 31.12 after the tax rate has been established.If the levy target for31.13fiscal year 1999 or fiscal year 2000 is changed by another law31.14enacted during the 1997 or 1998 session, the commissioner shall31.15reduce the general education levy target in this section by the31.16amount of the reduction in the enacted law.31.17 (Effective Date: Section 42 (126C.13, subdivision 1) is 31.18 effective for taxes payable in 2000 and later.) 31.19 Sec. 43. Minnesota Statutes 1998, section 126C.13, 31.20 subdivision 2, is amended to read: 31.21 Subd. 2. [GENERAL EDUCATION LEVY.] To obtain general 31.22 education revenue, excluding transition revenue and supplemental 31.23 revenue, a district may levy an amount not to exceed the general 31.24 education tax rate times the adjusted net tax capacity of the 31.25 district for the preceding year. If the amount of the general 31.26 education levy would exceed the general education revenue, 31.27 excluding transition revenue and supplemental revenue, the 31.28 general education levy must be determined according to 31.29 subdivision 3. 31.30 Sec. 44. Minnesota Statutes 1998, section 126C.15, 31.31 subdivision 1, is amended to read: 31.32 Subdivision 1. [USE OF THE REVENUE.] Thecompensatory31.33educationbasic skills revenue under section 126C.10, 31.34 subdivision34, and the portion of the transition revenue 31.35 adjustment under section 126C.10, subdivision 20, attributable 31.36 to the compensatory transition allowance under section 126C.10, 32.1 subdivision 19, paragraph (b), must be reserved and used to meet 32.2 the educational needs of pupils who enroll under-prepared to 32.3 learn and whose progress toward meeting state or local content 32.4 or performance standards is below the level that is appropriate 32.5 for learners of their age. Any of the following may be provided 32.6 to meet these learners' needs: 32.7 (1) direct instructional services under the assurance of 32.8 mastery program according to section 124D.66; 32.9 (2) remedial instruction in reading, language arts, 32.10 mathematics, other content areas, or study skills to improve the 32.11 achievement level of these learners; 32.12 (3) additional teachers and teacher aides to provide more 32.13 individualized instruction to these learners through individual 32.14 tutoring, lower instructor-to-learner ratios, or team teaching; 32.15 (4) a longer school day or week during the regular school 32.16 year or through a summer program that may be offered directly by 32.17 the site or under a performance-based contract with a 32.18 community-based organization; 32.19 (5) comprehensive and ongoing staff development consistent 32.20 with district and site plans according to section 122A.60, for 32.21 teachers, teacher aides, principals, and other personnel to 32.22 improve their ability to identify the needs of these learners 32.23 and provide appropriate remediation, intervention, 32.24 accommodations, or modifications; 32.25 (6) instructional materials and technology appropriate for 32.26 meeting the individual needs of these learners; 32.27 (7) programs to reduce truancy, encourage completion of 32.28 high school, enhance self-concept, provide health services, 32.29 provide nutrition services, provide a safe and secure learning 32.30 environment, provide coordination for pupils receiving services 32.31 from other governmental agencies, provide psychological services 32.32 to determine the level of social, emotional, cognitive, and 32.33 intellectual development, and provide counseling services, 32.34 guidance services, and social work services; 32.35 (8) bilingual programs, bicultural programs, and programs 32.36 for learners of limited English proficiency; 33.1 (9) all day kindergarten; 33.2 (10) extended school day and extended school year programs; 33.3 (11) substantial parent involvement in developing and 33.4 implementing remedial education or intervention plans for a 33.5 learner, including learning contracts between the school, the 33.6 learner, and the parent that establish achievement goals and 33.7 responsibilities of the learner and the learner's parent or 33.8 guardian; and 33.9 (12) other methods to increase achievement, as needed. 33.10 Sec. 45. Minnesota Statutes 1998, section 126C.15, 33.11 subdivision 2, is amended to read: 33.12 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 33.13 allocate its compensatory revenue to each school building in the 33.14 district where the children who have generated the revenue are 33.15 served. 33.16 (b) Notwithstanding paragraph (a), for fiscal years 1999 33.17 and 2000, upon approval by the commissioner, a district may 33.18 allocate up to five percent of the amount of compensatory 33.19 revenue that the district would have received under Minnesota 33.20 Statutes 1996, section126C.10124A.22, subdivision 3, for 33.21 fiscal year 1998, computed using a basic formula allowance of 33.22 $3,581, to school sites according to a plan adopted by the 33.23 school board. 33.24 (c) For the purposes of this section and section 126C.05, 33.25 subdivision 3, "building" means education site as defined in 33.26 section 123B.04, subdivision 1. 33.27 (d) If the pupil is served at a site other than one owned 33.28 and operated by the district, the revenue shall be paid to the 33.29 district and used for services for pupils who generate the 33.30 revenue. 33.31 Sec. 46. Minnesota Statutes 1998, section 126C.17, 33.32 subdivision 1, is amended to read: 33.33 Subdivision 1. [REFERENDUM ALLOWANCE.] A district's 33.34 referendum revenue allowance equals the referendum revenue 33.35 authority for that year divided by its resident marginal cost 33.36 pupil units for that school year. 34.1 Sec. 47. Minnesota Statutes 1998, section 126C.17, 34.2 subdivision 2, is amended to read: 34.3 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 34.4 subdivision 1, a district's referendum allowance must not exceed 34.5 the greater of: 34.6 (1) the district's referendum allowance for fiscal year 34.7 1994; 34.8 (2) 25 percent of the formula allowance minus $300 for 34.9 fiscal year 1997 and later; or 34.10 (3) for a newly reorganized district created after July 1, 34.11 1994, the sum of the referendum revenue authority for the 34.12 reorganizing districts for the fiscal year preceding the 34.13 reorganization, divided by the sum of the resident marginal cost 34.14 pupil units of the reorganizing districts for the fiscal year 34.15 preceding the reorganization. 34.16 Sec. 48. Minnesota Statutes 1998, section 126C.17, 34.17 subdivision 4, is amended to read: 34.18 Subd. 4. [TOTAL REFERENDUM REVENUE.] The total referendum 34.19 revenue for each district equals the district's referendum 34.20 allowance times the resident marginal cost pupil units for the 34.21 school year. 34.22 Sec. 49. Minnesota Statutes 1998, section 126C.17, 34.23 subdivision 5, is amended to read: 34.24 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A 34.25 district's referendum equalization revenue equals$350the 34.26 referendum equalization allowance times the district's resident 34.27 marginal cost pupil units for that year. 34.28 (b) The referendum equalization allowance equals $350 for 34.29 fiscal year 2000 and $415 for fiscal year 2001 and later. 34.30 (c) Referendum equalization revenue must not exceed a 34.31 district's total referendum revenue for that year. 34.32 Sec. 50. Minnesota Statutes 1998, section 126C.17, 34.33 subdivision 6, is amended to read: 34.34 Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a)For fiscal34.35year 1999 and thereafter,A district's referendum equalization 34.36 levy for a referendum levied against the referendum market value 35.1 of all taxable property as defined in section 126C.01, 35.2 subdivision 3, equals the district's referendum equalization 35.3 revenue times the lesser of one or the ratio of the district's 35.4 referendum market value per resident marginal cost pupil unit to 35.5 $476,000. 35.6 (b)For fiscal year 1999 and thereafter,A district's 35.7 referendum equalization levy for a referendum levied against the 35.8 net tax capacity of all taxable property equals the district's 35.9 referendum equalization revenue times the lesser of one or the 35.10 ratio of the district's adjusted net tax capacity per resident 35.11 marginal cost pupil unit to$10,000$8,404. 35.12 Sec. 51. Minnesota Statutes 1998, section 126C.17, 35.13 subdivision 9, is amended to read: 35.14 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 35.15 by section 126C.10, subdivision 1, may be increased in the 35.16 amount approved by the voters of the district at a referendum 35.17 called for the purpose. The referendum may be called by the 35.18 board or shall be called by the board upon written petition of 35.19 qualified voters of the district. The referendum must be 35.20 conducted one or two calendar years before the increased levy 35.21 authority, if approved, first becomes payable. Only one 35.22 election to approve an increase may be held in a calendar year. 35.23 Unless the referendum is conducted by mail under paragraph (g), 35.24 the referendum must be held on the first Tuesday after the first 35.25 Monday in November. The ballot must state the maximum amount of 35.26 the increased revenue per resident marginal cost pupil unit, the 35.27 estimated referendum tax rate as a percentage of market value in 35.28 the first year it is to be levied, and that the revenue must be 35.29 used to finance school operations. The ballot may state a 35.30 schedule, determined by the board, of increased revenue per 35.31 resident pupil units that differs from year to year over the 35.32 number of years for which the increased revenue is authorized. 35.33 If the ballot contains a schedule showing different amounts, it 35.34 must also indicate the estimated referendum tax rate as a 35.35 percent of market value for the amount specified for the first 35.36 year and for the maximum amount specified in the schedule. The 36.1 ballot may state that existing referendum levy authority is 36.2 expiring. In this case, the ballot may also compare the 36.3 proposed levy authority to the existing expiring levy authority, 36.4 and express the proposed increase as the amount, if any, over 36.5 the expiring referendum levy authority. The ballot must 36.6 designate the specific number of years, not to exceed ten, for 36.7 which the referendum authorization applies. The notice required 36.8 under section 275.60 may be modified to read, in cases of 36.9 renewing existing levies: 36.10 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 36.11 FOR A PROPERTY TAX INCREASE." 36.12 The ballot may contain a textual portion with the 36.13 information required in this subdivision and a question stating 36.14 substantially the following: 36.15 "Shall the increase in the revenue proposed by (petition 36.16 to) the board of ........., School District No. .., be approved?" 36.17 If approved, an amount equal to the approved revenue per 36.18 resident marginal cost pupil unit times the resident marginal 36.19 cost pupil units for the school year beginning in the year after 36.20 the levy is certified shall be authorized for certification for 36.21 the number of years approved, if applicable, or until revoked or 36.22 reduced by the voters of the district at a subsequent referendum. 36.23 (b) The board must prepare and deliver by first class mail 36.24 at least 15 days but no more than 30 days before the day of the 36.25 referendum to each taxpayer a notice of the referendum and the 36.26 proposed revenue increase. The board need not mail more than 36.27 one notice to any taxpayer. For the purpose of giving mailed 36.28 notice under this subdivision, owners must be those shown to be 36.29 owners on the records of the county auditor or, in any county 36.30 where tax statements are mailed by the county treasurer, on the 36.31 records of the county treasurer. Every property owner whose 36.32 name does not appear on the records of the county auditor or the 36.33 county treasurer is deemed to have waived this mailed notice 36.34 unless the owner has requested in writing that the county 36.35 auditor or county treasurer, as the case may be, include the 36.36 name on the records for this purpose. The notice must project 37.1 the anticipated amount of tax increase in annual dollars and 37.2 annual percentage for typical residential homesteads, 37.3 agricultural homesteads, apartments, and commercial-industrial 37.4 property within the school district. 37.5 The notice for a referendum may state that an existing 37.6 referendum levy is expiring and project the anticipated amount 37.7 of increase over the existing referendum levy in the first year, 37.8 if any, in annual dollars and annual percentage for typical 37.9 residential homesteads, agricultural homesteads, apartments, and 37.10 commercial-industrial property within the district. 37.11 The notice must include the following statement: "Passage 37.12 of this referendum will result in an increase in your property 37.13 taxes." However, in cases of renewing existing levies, the 37.14 notice may include the following statement: "Passage of this 37.15 referendum may result in an increase in your property taxes." 37.16 (c) A referendum on the question of revoking or reducing 37.17 the increased revenue amount authorized pursuant to paragraph 37.18 (a) may be called by the board and shall be called by the board 37.19 upon the written petition of qualified voters of the district. 37.20 A referendum to revoke or reduce the levy amount must be based 37.21 upon the dollar amount, local tax rate, or amount per resident 37.22 marginal cost pupil unit, that was stated to be the basis for 37.23 the initial authorization. Revenue approved by the voters of 37.24 the district pursuant to paragraph (a) must be received at least 37.25 once before it is subject to a referendum on its revocation or 37.26 reduction for subsequent years. Only one revocation or 37.27 reduction referendum may be held to revoke or reduce referendum 37.28 revenue for any specific year and for years thereafter. 37.29 (d) A petition authorized by paragraph (a) or (c) is 37.30 effective if signed by a number of qualified voters in excess of 37.31 15 percent of the registered voters of the district on the day 37.32 the petition is filed with the board. A referendum invoked by 37.33 petition must be held on the date specified in paragraph (a). 37.34 (e) The approval of 50 percent plus one of those voting on 37.35 the question is required to pass a referendum authorized by this 37.36 subdivision. 38.1 (f) At least 15 days before the day of the referendum, the 38.2 district must submit a copy of the notice required under 38.3 paragraph (b) to the commissioner and to the county auditor of 38.4 each county in which the district is located. Within 15 days 38.5 after the results of the referendum have been certified by the 38.6 board, or in the case of a recount, the certification of the 38.7 results of the recount by the canvassing board, the district 38.8 must notify the commissioner of the results of the referendum. 38.9 (g) Except for a referendum held under subdivision 11, any 38.10 referendum under this section held on a day other than the first 38.11 Tuesday after the first Monday in November must be conducted by 38.12 mail in accordance with section 204B.46. Notwithstanding 38.13 paragraph (b) to the contrary, in the case of a referendum 38.14 conducted by mail under this paragraph, the notice required by 38.15 paragraph (b) must be prepared and delivered by first class mail 38.16 at least 20 days before the referendum. 38.17 Sec. 52. Minnesota Statutes 1998, section 126C.22, 38.18 subdivision 2, is amended to read: 38.19 Subd. 2. [DISTRICT COOPERATION LEVY.] To receive district 38.20 cooperation revenue, a district may levy an amount equal to the 38.21 district's cooperation revenue multiplied by the lesser of one, 38.22 or the ratio of the quotient derived by dividing the adjusted 38.23 net tax capacity of the district for the year preceding the year 38.24 the levy is certified by the resident pupil units in the 38.25 district for the school year to which the levy is attributable 38.26 to$3,500$2,942. 38.27 Sec. 53. [126C.23] [ALLOCATION OF GENERAL EDUCATION 38.28 REVENUE.] 38.29 Subdivision 1. [DEFINITIONS.] For the purposes of this 38.30 section, "building" means education site as defined in section 38.31 123B.04, subdivision 1. 38.32 Subd. 2. [BUILDING ALLOCATION.] A district must initially 38.33 allocate its general education and referendum revenue to each 38.34 building in the district where the children who have generated 38.35 the revenue are served. General education and referendum 38.36 revenue generated by students served at sites not owned and 39.1 operated by the district must be allocated to a separate account 39.2 to be used for services for pupils who generated the revenue. 39.3 Subd. 3. [REALLOCATION FOR EXPENDITURES.] A district may, 39.4 by board resolution, adjust the initial allocation so as to 39.5 expend revenue for any purpose including, but not limited to, 39.6 district services, revenues or other funds established, 39.7 reallocations among buildings and programs and, separately, the 39.8 costs of increases in compensation approved by the board for 39.9 teachers and other employees. 39.10 Subd. 4. [SEPARATE ACCOUNTS.] Each district shall maintain 39.11 separate accounts to identify revenues and expenditures for each 39.12 building. 39.13 Subd. 5. [DATA REPORTING.] Each district must report to 39.14 the commissioner the estimated amount of general education and 39.15 referendum initially allocated to each building under 39.16 subdivision 2 and the amount of any reallocations under 39.17 subdivision 3 by January 30 of the current fiscal year, and the 39.18 actual amount of general education and referendum revenue 39.19 initially allocated to each building under subdivision 2 and the 39.20 amount of any reallocations under subdivision 3 by January 30 of 39.21 the next fiscal year. The commissioner must provide a report to 39.22 the kindergarten through grade 12 education finance committees 39.23 of the legislature by March 15 each year. 39.24 Sec. 54. Minnesota Statutes 1998, section 126C.41, 39.25 subdivision 2, is amended to read: 39.26 Subd. 2. [RETIRED EMPLOYEE HEALTH BENEFITS.]For taxes39.27payable in 1996, 1997, 1998, and 1999 only,A district may levy 39.28 an amount up to the amount the district is required by the 39.29 collective bargaining agreement in effect on March 30, 1992, to 39.30 pay for health insurance or unreimbursed medical expenses for 39.31 licensed and nonlicensed employees who have terminated services 39.32 in the employing district and withdrawn from active teaching 39.33 service or other active service, as applicable, before July 1, 39.34 1992. The total amount of the levy each year may not exceed 39.35$300,000$400,000. 39.36 Sec. 55. Minnesota Statutes 1998, section 126C.42, 40.1 subdivision 1, is amended to read: 40.2 Subdivision 1. [1977 STATUTORY OPERATING DEBT.] (a) In 40.3 each year in which so required by this subdivision, a district 40.4 must make an additional levy to eliminate its statutory 40.5 operating debt, determined as of June 30, 1977, and certified 40.6 and adjusted by the commissioner. This levy shall not be made 40.7 in more than 30 successive years and each year before it is 40.8 made, it must be approved by the commissioner and the approval 40.9 shall specify its amount. This levy shall be an amount which is 40.10 equal to the amount raised by a levy of a net tax rate of1.6640.11 1.98 percent times the adjusted net tax capacity of the district 40.12 for the preceding year for taxes payable in19912000 and 40.13 thereafter; provided that in the last year in which the district 40.14 is required to make this levy, it must levy an amount not to 40.15 exceed the amount raised by a levy of a net tax rate of1.6640.16 1.98 percent times the adjusted net tax capacity of the district 40.17 for the preceding year for taxes payable in19912000 and 40.18 thereafter. When the sum of the cumulative levies made pursuant 40.19 to this subdivision and transfers made according to section 40.20 123B.79, subdivision 6, equals an amount equal to the statutory 40.21 operating debt of the district, the levy shall be discontinued. 40.22 (b) The district must establish a special account in the 40.23 general fund which shall be designated "appropriated fund 40.24 balance reserve account for purposes of reducing statutory 40.25 operating debt" on its books and records. This account shall 40.26 reflect the levy authorized pursuant to this subdivision. The 40.27 proceeds of this levy must be used only for cash flow 40.28 requirements and must not be used to supplement district 40.29 revenues or income for the purposes of increasing the district's 40.30 expenditures or budgets. 40.31 (c) Any district which is required to levy pursuant to this 40.32 subdivision must certify the maximum levy allowable under 40.33 section 126C.13, subdivision 2, in that same year. 40.34 (d) Each district shall make permanent fund balance 40.35 transfers so that the total statutory operating debt of the 40.36 district is reflected in the general fund as of June 30, 1977. 41.1 Sec. 56. Minnesota Statutes 1998, section 126C.42, 41.2 subdivision 2, is amended to read: 41.3 Subd. 2. [1983 OPERATING DEBT.] (1) Each year, a district 41.4 may make an additional levy to eliminate a deficit in the net 41.5 unappropriated operating funds of the district, determined as of 41.6 June 30, 1983, and certified and adjusted by the commissioner. 41.7 This levy may in each year be an amount not to exceed the amount 41.8 raised by a levy of a net tax rate of1.852.2 percent times the 41.9 adjusted net tax capacity for taxes payable in 1991 and 41.10 thereafter of the district for the preceding year as determined 41.11 by the commissioner. However, the total amount of this levy for 41.12 all years it is made must not exceed the lesser of (a) the 41.13 amount of the deficit in the net unappropriated operating funds 41.14 of the district as of June 30, 1983, or (b) the amount of the 41.15 aid reduction, according to Laws 1981, Third Special Session 41.16 chapter 2, article 2, section 2, but excluding clauses (l), (m), 41.17 (n), (o), and (p), and Laws 1982, Third Special Session chapter 41.18 1, article 3, section 6, to the district in fiscal year 1983. 41.19 When the cumulative levies made pursuant to this subdivision 41.20 equal the total amount permitted by this subdivision, the levy 41.21 must be discontinued. 41.22 (2) The proceeds of this levy must be used only for cash 41.23 flow requirements and must not be used to supplement district 41.24 revenues or income for the purposes of increasing the district's 41.25 expenditures or budgets. 41.26 (3) A district that levies pursuant to this subdivision 41.27 must certify the maximum levy allowable under section 126C.13, 41.28 subdivision 2, in that same year. 41.29 Sec. 57. Minnesota Statutes 1998, section 126C.63, 41.30 subdivision 5, is amended to read: 41.31 Subd. 5. [LEVY.] "Levy" means a district's net debt 41.32 service levy after the reduction of debt service equalization 41.33 aid under section 123B.53, subdivision 6. For taxes payable in 41.34 1994 and later, each district's maximum effort debt service levy 41.35 for purposes of subdivision 8, must be reduced by an equal 41.36 number of percentage points if the commissioner determines that 42.1 the levy reduction will not result in a statewide property tax 42.2 as would be required under Minnesota Statutes 1992, section 42.3 124.46, subdivision 3. A district's levy that is adjusted under 42.4 this section must not be reduced below18.7422.3 percent of the 42.5 district's adjusted net tax capacity. 42.6 Sec. 58. Minnesota Statutes 1998, section 127A.44, 42.7 subdivision 2, is amended to read: 42.8 Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in 42.9 subdivision 1 shall be used to adjust the following state aids 42.10 and credits in the order listed: 42.11 (1) general education aid authorized in section 126C.13; 42.12 (2) secondary vocational aid authorized in section 42.13 124D.453; 42.14 (3) special education aid authorized in sections 125A.75 42.15 and 125A.76; 42.16 (4) school-to-work program aid for children with a 42.17 disability authorized in section 124D.454; 42.18 (5)aid for pupils of limited English proficiency42.19authorized in section 124D.65;42.20(6)transportation aid authorized in section 123B.92; 42.21(7)(6) community education programs aid authorized in 42.22 section 124D.20; 42.23(8)(7) adult education aid authorized in section 124D.52; 42.24(9)(8) early childhood family education aid authorized in 42.25 section 124D.135; 42.26(10)(9) capital expenditure aid authorized in section 42.27 123B.57; 42.28(11)(10) school district cooperation aid authorized in 42.29 section 126C.22; 42.30(12) assurance of mastery aid according to section 124D.67;42.31(13)(11) homestead and agricultural credit aid, disparity 42.32 credit and aid, and changes to credits for prior year 42.33 adjustments according to section 273.1398, subdivisions 2, 3, 4, 42.34 and 7; 42.35(14)(12) attached machinery aid authorized in section 42.36 273.138, subdivision 3; 43.1(15) alternative delivery aid authorized in section43.2125A.78;43.3(16) special education equalization aid authorized in43.4section 125A.77;43.5(17)(13) special education excess cost aid authorized in 43.6 section 125A.79; and 43.7(18)(14) learning readiness aid authorized in section 43.8 124D.16; and43.9(19) cooperation-combination aid authorized in section43.10123A.39, subdivision 3. 43.11 (b) The commissioner shall schedule the timing of the 43.12 adjustments to state aids and credits specified in subdivision 43.13 1, as close to the end of the fiscal year as possible. 43.14 (Effective date: Section 58 (127A.44, subdivision 2) is 43.15 effective the day following final enactment.) 43.16 Sec. 59. Minnesota Statutes 1998, section 127A.45, 43.17 subdivision 2, is amended to read: 43.18 Subd. 2. [DEFINITIONS.] (a) The term "other district 43.19 receipts" means payments by county treasurers pursuant to 43.20 section 276.10, apportionments from the school endowment fund 43.21 pursuant to section 127A.33, apportionments by the county 43.22 auditor pursuant to section 127A.34, subdivision 2, and payments 43.23 to school districts by the commissioner of revenue pursuant to 43.24 chapter 298. 43.25 (b) The term "cumulative amount guaranteed" meansthe sum43.26of the following:43.27(1) one-third of the final adjustment payment according to43.28subdivision 9; plus43.29(2)the product of 43.30(i)(1) the cumulative disbursement percentage shown in 43.31 subdivision 3; times 43.32(ii)(2) the sum of 43.33 (i) 90 percent of the estimated aid and credit entitlements 43.34 paid according to subdivision 13; plus 43.35 (ii) 100 percent of the entitlements paid according to 43.36 subdivisions 11 and 12; plus 44.1 (iii) the other district receipts; plus 44.2 (iv) the final adjustment payment according to subdivision 44.3 9. 44.4 (c) The term "payment date" means the date on which state 44.5 payments to districts are made by the electronic funds transfer 44.6 method. If a payment date falls on a Saturday, a Sunday, or a 44.7 weekday which is a legal holiday, the payment shall be made on 44.8 the immediately following business day. The commissioner may 44.9 make payments on dates other than those listed in subdivision 3, 44.10 but only for portions of payments from any preceding payment 44.11 dates which could not be processed by the electronic funds 44.12 transfer method due to documented extenuating circumstances. 44.13 Sec. 60. Minnesota Statutes 1998, section 127A.45, 44.14 subdivision 3, is amended to read: 44.15 Subd. 3. [PAYMENT DATES AND PERCENTAGES.] The commissioner 44.16 shall pay to a district on the dates indicated an amount 44.17 computed as follows: the cumulative amount guaranteed minus the 44.18 sum of (a) the district's other district receipts through the 44.19 current payment, and (b) the aid and credit payments through the 44.20 immediately preceding payment. For purposes of this 44.21 computation, the payment dates and the cumulative disbursement 44.22 percentages are as follows: 44.23 Payment date Percentage 44.24 Payment 1 July 15:2.254.7 44.25 Payment 2 July 30:4.507.0 44.26 Payment 3 August 15: the greater of (a) the final 44.27 adjustment for the prior fiscal year for 44.28 the state paid property tax credits 44.29 established in section 273.1392, or 44.30 (b) the amount needed to provide6.759.3 percent 44.31 Payment 4 August 30:9.011.5 44.32 Payment 5 September 15:12.7515.2 44.33 Payment 6 September 30:16.5018.9 44.34 Payment 7 October 15: the greater of (a) one-half of 44.35 the final adjustment for the prior fiscal year 44.36 for all aid entitlements except state paid 45.1 property tax credits, or (b) the amount needed to 45.2 provide20.7523.1 percent 45.3 Payment 8 October 30: the greater of (a) one-half of the 45.4 final adjustment for the prior fiscal year for all 45.5 aid entitlements except state paid property 45.6 tax credits, or (b) the amount needed 45.7 to provide25.027.5 percent 45.8 Payment 9 November 15:31.033.5 45.9 Payment 10 November 30:37.039.5 45.10 Payment 11 December 15:40.042.5 45.11 Payment 12 December 30:43.045.5 45.12 Payment 13 January 15:47.2549.8 45.13 Payment 14 January 30:51.554.0 45.14 Payment 15 February 15:56.058.5 45.15 Payment 16 February 28:60.563.0 45.16 Payment 17 March 15:65.2567.8 45.17 Payment 18 March 30:70.072.5 45.18 Payment 19 April 15:73.075.7 45.19 Payment 20 April 30:79.081.4 45.20 Payment 21 May 15:82.084.4 45.21 Payment 22 May 30:90.092.4 45.22 Payment 23 June 20: 100.0 45.23 Sec. 61. Minnesota Statutes 1998, section 127A.45, 45.24 subdivision 5, is amended to read: 45.25 Subd. 5. [CASH FLOW ADJUSTMENT.] During each year in which 45.26 the cash flow low points for August, September, and October 45.27 estimated by the commissioner of finance for invested 45.28 treasurer's cash exceeds $360,000,000, the commissioner shall 45.29 increase the cumulative disbursement percentages established in 45.30 subdivision 3 to the following amounts: 45.31 Payment 3 August 15:12.7515.3 percent 45.32 Payment 4 August 30:15.0017.6 percent 45.33 Payment 5 September 15:17.2519.8 percent 45.34 Payment 6 September 30:19.5021.9 percent 45.35 Payment 7 October 15:21.7524.2 percent 45.36 Sec. 62. Minnesota Statutes 1998, section 127A.45, is 46.1 amended by adding a subdivision to read: 46.2 Subd. 12a. [FORWARD SHIFTED AID PAYMENTS.] Nineteen 46.3 percent of the state aid in fiscal year 1999, and 31 percent of 46.4 the state aid in fiscal years 2000 and later received under 46.5 section 124D.86 must be paid by the state to the recipient 46.6 school district on July 15 of that year. The recipient school 46.7 district must recognize this aid in the same fiscal year as the 46.8 levy is recognized. 46.9 (Effective Date: Section 62 (127A.45, subdivision 12a) is 46.10 effective the day following final enactment for revenue for 46.11 fiscal year 1999 and later.) 46.12 Sec. 63. Minnesota Statutes 1998, section 127A.47, 46.13 subdivision 1, is amended to read: 46.14 Subdivision 1. [AID TO SERVING DISTRICTOF RESIDENCE.] (a) 46.15 Unless otherwise specifically provided by law, general education 46.16 aid must be paidto the district of residence unless otherwise46.17specifically provided by lawaccording to this subdivision. 46.18 (b) Except as provided in paragraph (c), general education 46.19 aid must be paid to the serving district. 46.20 (c) If the resident district pays tuition for a pupil under 46.21 section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 46.22 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 46.23 125A.51, or 125A.65, general education aid, excluding basic 46.24 skills revenue under section 126C.10, subdivision 4, must be 46.25 paid to the resident district. 46.26 Sec. 64. Minnesota Statutes 1998, section 127A.47, 46.27 subdivision 7, is amended to read: 46.28 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 46.29 education aid for districts must be adjusted for each pupil 46.30 attending a nonresident district under sections 123A.05 to 46.31 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68. The 46.32 adjustments must be made according to this subdivision. 46.33 (a) General education aid paid to a resident district must 46.34 be reduced by an amount equal to thegeneral education revenue46.35exclusive of basic skills revenuereferendum equalization aid 46.36 attributable to the pupil in the resident district. 47.1 (b) General education aid paid to a district serving a 47.2 pupil in programs listed in this subdivision must be increased 47.3 by an amount equal to thegeneral education revenue exclusive of47.4basic skills revenuereferendum equalization aid attributable to 47.5 the pupil in the nonresident district. 47.6 (c) If the amount of the reduction to be made from the 47.7 general education aid of the resident district is greater than 47.8 the amount of general education aid otherwise due the district, 47.9 the excess reduction must be made from other state aids due the 47.10 district. 47.11 (d) The district of residence must pay tuition to a 47.12 district or an area learning center, operated according to 47.13 paragraph (e), providing special instruction and services to a 47.14 pupil with a disability, as defined in section 125A.02, or a 47.15 pupil, as defined in section 125A.51, who is enrolled in a 47.16 program listed in this subdivision. The tuition must be equal 47.17 to (1) the actual cost of providing special instruction and 47.18 services to the pupil, including a proportionate amount for debt 47.19 service and for capital expenditure facilities and equipment, 47.20 and debt service but not including any amount for 47.21 transportation, minus (2) the amount of general education 47.22aidrevenue and special education aid but not including any 47.23 amount for transportation, attributable to that pupil, that is 47.24 received by the district providing special instruction and 47.25 services. 47.26 (e) An area learning center operated by a service 47.27 cooperative, intermediate district, education district, or a 47.28 joint powers cooperative may elect through the action of the 47.29 constituent boards to charge tuition for pupils rather than to 47.30 calculate general education aid adjustments under paragraph (a), 47.31 (b), or (c). The tuition must be equal to the greater of the 47.32 average general education revenue per pupil unit attributable to 47.33 the pupil, or the actual cost of providing the instruction, 47.34 excluding transportation costs, if the pupil meets the 47.35 requirements of section 125A.02 or 125A.51. 47.36 Sec. 65. Minnesota Statutes 1998, section 127A.47, 48.1 subdivision 8, is amended to read: 48.2 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 48.3 for districts must be adjusted for each pupil attending a 48.4 charter school under section 124D.10. The adjustments must be 48.5 made according to this subdivision. 48.6 (b)General education aid paid to a resident district must48.7be reduced by an amount equal to the general education revenue48.8exclusive of basic skills revenue.48.9(c)General education aid paid to a district in which a 48.10 charter school not providing transportation according to section 48.11 124D.10, subdivision 16, is located must be increased by an 48.12 amount equal to the product of: (1) the sum of an amount equal 48.13 to the product of the formula allowance according to section 48.14 126C.10, subdivision 2, times .0485, plus the transportation 48.15 sparsity allowance for the district, plus the transportation 48.16 transition allowance for the district; times (2) the pupil units 48.17 attributable to the pupil. 48.18(d) If the amount of the reduction to be made from the48.19general education aid of the resident district is greater than48.20the amount of general education aid otherwise due the district,48.21the excess reduction must be made from other state aids due the48.22district.48.23 Sec. 66. Minnesota Statutes 1998, section 127A.49, 48.24 subdivision 2, is amended to read: 48.25 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 48.26 sections 270.07, 375.192, or otherwise, the net tax capacity of 48.27 any district for any taxable year is changed after the taxes for 48.28 that year have been spread by the county auditor and the local 48.29 tax rate as determined by the county auditor based upon the 48.30 original net tax capacity is applied upon the changed net tax 48.31 capacities, the county auditor shall, prior to February 1 of 48.32 each year, certify to the commissioner of children, families, 48.33 and learning the amount of any resulting net revenue loss that 48.34 accrued to the district during the preceding year. Each year, 48.35 the commissioner shall pay an abatement adjustment to the 48.36 district in an amount calculated according to the provisions of 49.1 this subdivision. This amount shall be deducted from the amount 49.2 of the levy authorized by section 126C.46. The amount of the 49.3 abatement adjustment must be the product of: 49.4 (1) the net revenue loss as certified by the county 49.5 auditor, times 49.6 (2) the ratio of: 49.7 (i) the sum of the amounts of the district's certified levy 49.8 in the preceding year according to the following: 49.9 (A) section 126C.13 if the district received general 49.10 education aid according to that section for the second preceding 49.11 year; 49.12 (B)section 124.226, subdivisions 1 and 4, if the district49.13received transportation aid according to section 123B.92 for the49.14second preceding year;49.15(C) section 124.243, if the district received capital49.16expenditure facilities aid according to that section for the49.17second preceding year;49.18(D) section 124.244, if the district received capital49.19expenditure equipment aid according to that section for the49.20second preceding year;49.21(E)section 123B.57, if the district received health and 49.22 safety aid according to that section for the second preceding 49.23 year; 49.24(F)(C) sections 124D.20, 124D.21, and 124D.56, if the 49.25 district received aid for community education programs according 49.26 to any of those sections for the second preceding year; 49.27(G)(D) section 124D.135, subdivision 3, if the district 49.28 received early childhood family education aid according to 49.29 section 124D.135 for the second preceding year; and 49.30(H) section 125A.77, subdivision 3, if the district49.31received special education levy equalization aid according to49.32that section for the second preceding year;49.33(I)(E) section 126C.17, subdivision 6, if the district 49.34 received referendum equalization aid according to that section 49.35 for the second preceding year;and49.36(J) section 124A.22, subdivision 4a, if the district50.1received training and experience aid according to that section50.2for the second preceding year;to 50.3 (ii) the total amount of the district's certified levy in 50.4 the precedingOctoberDecember, plus or minus auditor's 50.5 adjustments. 50.6 Sec. 67. Minnesota Statutes 1998, section 127A.49, 50.7 subdivision 3, is amended to read: 50.8 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 50.9 tax increment is made to a district pursuant to section 469.176, 50.10 subdivision 2, or upon decertification of a tax increment 50.11 district, the school district's aid and levy limitations must be 50.12 adjusted for the fiscal year in which the excess tax increment 50.13 is paid under the provisions of this subdivision. 50.14 (b) An amount must be subtracted from the district's aid 50.15 for the current fiscal year equal to the product of: 50.16 (1) the amount of the payment of excess tax increment to 50.17 the district, times 50.18 (2) the ratio of: 50.19 (i) the sum of the amounts of the district's certified levy 50.20 for the fiscal year in which the excess tax increment is paid 50.21 according to the following: 50.22 (A) section 126C.13, if the district received general 50.23 education aid according to that section for the second preceding 50.24 year; 50.25 (B)section 124.226, subdivisions 1 and 4, if the district50.26received transportation aid according to section 123B.92 for the50.27second preceding year;50.28(C) section 124.243, if the district received capital50.29expenditure facilities aid according to that section for the50.30second preceding year;50.31(D) section 124.244, if the district received capital50.32expenditure equipment aid according to that section for the50.33second preceding year;50.34(E)section 123B.57, if the district received health and 50.35 safety aid according to that section for the second preceding 50.36 year; 51.1(F)(C) sections 124D.20, 124D.21, and 124D.56, if the 51.2 district received aid for community education programs according 51.3 to any of those sections for the second preceding year; 51.4(G)(D) section 124D.135, subdivision 3, if the district 51.5 received early childhood family education aid according to 51.6 section 124D.135 for the second preceding year; and 51.7(H) section 125A.77, subdivision 3, if the district51.8received special education levy equalization aid according to51.9that section for the second preceding year;51.10(I)(E) section 126C.17, subdivision 6, if the district 51.11 received referendum equalization aid according to that section 51.12 for the second preceding year;and51.13(J) section 124A.22, subdivision 4a, if the district51.14received training and experience aid according to that section51.15for the second preceding year;to 51.16 (ii) the total amount of the district's certified levy for 51.17 the fiscal year, plus or minus auditor's adjustments. 51.18 (c) An amount must be subtracted from the school district's 51.19 levy limitation for the next levy certified equal to the 51.20 difference between: 51.21 (1) the amount of the distribution of excess increment; and 51.22 (2) the amount subtracted from aid pursuant to clause (a). 51.23 If the aid and levy reductions required by this subdivision 51.24 cannot be made to the aid for the fiscal year specified or to 51.25 the levy specified, the reductions must be made from aid for 51.26 subsequent fiscal years, and from subsequent levies. The school 51.27 district must use the payment of excess tax increment to replace 51.28 the aid and levy revenue reduced under this subdivision. 51.29 (d) This subdivision applies only to the total amount of 51.30 excess increments received by a district for a calendar year 51.31 that exceeds $25,000. 51.32 Sec. 68. Minnesota Statutes 1998, section 127A.51, is 51.33 amended to read: 51.34 127A.51 [STATEWIDE AVERAGE REVENUE.] 51.35 By October 1 of each year the commissioner must estimate 51.36 the statewide average adjusted general revenue perresident52.1 adjusted marginal cost pupil unit and the disparity in adjusted 52.2 general revenue among pupils and districts by computing the 52.3 ratio of the ninety-fifth percentile to the fifth percentile of 52.4 adjusted general revenue. The commissioner must provide that 52.5 information to all districts. 52.6 If the disparity in adjusted general revenue as measured by 52.7 the ratio of the ninety-fifth percentile to the fifth percentile 52.8 increases in any year, the commissioner shall recommend to the 52.9 legislature options for change in the general education formula 52.10 that will limit the disparity in adjusted general revenue to no 52.11 more than the disparity for the previous school year. The 52.12 commissioner must submit the recommended options to the 52.13 education committees of the legislature by January 15. 52.14 For purposes of this section, adjusted general revenue 52.15 means the sum of basic revenue under section 126C.10, 52.16 subdivision 2; supplemental revenue under section 126C.10, 52.17 subdivisions 9 and 12; transition revenue under section 126C.10, 52.18 subdivision 20; and referendum revenue under section 126C.17. 52.19 Sec. 69. Laws 1992, chapter 499, article 7, section 31, as 52.20 amended by Laws 1998, chapter 398, article 1, section 39, is 52.21 amended to read: 52.22 Sec. 31. [REPEALER.] 52.23 Minnesota Statutes 1990, sections 124A.02, subdivision 24; 52.24 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 52.25 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 52.26 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 52.27 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 52.28 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 52.29 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 52.30 1; and 124A.29, subdivision 1, are repealed effective June 30, 52.3120012002; Laws 1991, chapter 265, article 7, section 35, is 52.32 repealed. 52.33 Sec. 70. Laws 1996, chapter 412, article 1, section 35, is 52.34 amended to read: 52.35 Sec. 35. [REPEALER.] 52.36 Laws 1993, chapter 224, article 1, section 34, subdivision 53.1 1, is repealed.Section 8 is repealed July 1, 1999.53.2 (Effective date: Section 70 (Laws 1996, chapter 412, 53.3 article 1, section 35) is effective the day following final 53.4 enactment.) 53.5 Sec. 71. Laws 1997, First Special Session chapter 4, 53.6 article 1, section 61, subdivision 1, is amended to read: 53.7 Subdivision 1. [REVENUE CONVERSION.] For taxes payable in 53.8 1998 and 1999, the commissioner of children, families, and 53.9 learning shall adjust each school district's revenue authority 53.10 that is established as a rate times net tax capacity or adjusted 53.11 net tax capacity under Minnesota Statutes, chapters124 and 124A53.12 120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 53.13 multiplying each revenue amount by the ratio of the statewide 53.14 tax capacity as calculated using the class rates in effect for 53.15 assessment year 1996 to the statewide tax capacity using the 53.16 class rates for that assessment year. Tax rates for referendum 53.17 revenues according to Minnesota Statutes, section 126C.17, and 53.18 operating debt levies according to Minnesota Statutes, section 53.19 126C.42, established for an individual district under this 53.20 subdivision for taxes payable in 1999 shall remain in effect for 53.21 later years for which the revenue is authorized to be computed 53.22 as a rate times net tax capacity or adjusted net tax capacity. 53.23 (Effective date: Section 71 (Laws 1997, First Special 53.24 Session chapter 4, article 1, section 61, subdivision 1) is 53.25 effective the day following final enactment.) 53.26 Sec. 72. Laws 1997, First Special Session chapter 4, 53.27 article 1, section 61, subdivision 2, is amended to read: 53.28 Subd. 2. [TAX RATE ADJUSTMENT.] For taxes payable in 1998 53.29 and 1999, the commissioner shall adjust each tax rate 53.30 established under Minnesota Statutes, chapters124 and 124A53.31 120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 53.32 multiplying the rate by the ratio of the statewide tax capacity 53.33 as calculated using the class rates in effect for assessment 53.34 year 1996 to the statewide tax capacity using the class rates 53.35 for that assessment year. 53.36 (Effective date: Section 72 (Laws 1997, First Special 54.1 Session chapter 4, article 1, section 61, subdivision 2) is 54.2 effective the day following final enactment.) 54.3 Sec. 73. Laws 1997, First Special Session chapter 4, 54.4 article 1, section 61, subdivision 3, as amended by Laws 1998, 54.5 chapter 398, article 1, section 41, is amended to read: 54.6 Subd. 3. [EQUALIZING FACTORS.] For taxes payable in 1998 54.7 and 1999, the commissioner shall adjust each equalizing factor 54.8 established using adjusted net tax capacity per actual pupil 54.9 unit under Minnesota Statutes, chapters124 and 124A120B, 122A, 54.10 123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 54.11 equalizing factor by the ratio of the statewide tax capacity as 54.12 calculated using the class rates in effect for assessment year 54.13 1996 to the statewide tax capacity using the class rates for 54.14 that assessment year. 54.15 (Effective date: Section 73 (Laws 1997, First Special 54.16 Session chapter 4, article 1, section 61, subdivision 3) is 54.17 effective the day following final enactment.) 54.18 Sec. 74. Laws 1997, First Special Session chapter 4, 54.19 article 1, section 61, subdivision 4, is amended to read: 54.20 Subd. 4. [QUALIFYING RATE.] For taxes payable in 1998 and 54.21 1999, the commissioner shall adjust the qualifying rate under 54.22 Minnesota Statutes, section 124.95, subdivision 3, by 54.23 multiplying the qualifying rate times the ratio of the statewide 54.24 tax capacity, as calculated using the class rates in effect for 54.25 assessment year 1996, to the statewide tax capacity using the 54.26 class rates for that assessment year. 54.27 (Effective date: Section 74 (Laws 1997, First Special 54.28 Session chapter 4, article 1, section 61, subdivision 4) is 54.29 effective the day following final enactment.) 54.30 Sec. 75. [LEASE LEVY FOR ADMINISTRATIVE SPACE; EDEN 54.31 PRAIRIE.] 54.32 Each year, independent school district No. 272, Eden 54.33 Prairie, may levy the amount necessary to rent or lease 54.34 administrative space so that space previously used for 54.35 administrative purposes may be used for instructional purposes. 54.36 (Effective date: Section 75 (Lease Levy) is effective for 55.1 taxes payable in 2000 and later.) 55.2 Sec. 76. [OPERATING DEBT LEVY FOR TRACY SCHOOL DISTRICT.] 55.3 Subdivision 1. [OPERATING DEBT ACCOUNT.] On July 1, 1999, 55.4 independent school district No. 417, Tracy, shall establish a 55.5 reserve account in the general fund. The balance in this fund 55.6 shall equal the unreserved undesignated fund balance in the 55.7 operating funds of the district as of June 30, 1999. 55.8 Subd. 2. [LEVY.] For taxes payable in each of the years 55.9 2000 to 2004, the district may levy an amount up to 20 percent 55.10 of the balance in the account on July 1, 1999. The balance in 55.11 the account shall be adjusted each year by the amount of the 55.12 proceeds of the levy. The proceeds of the levy shall be used 55.13 only for cash flow requirements and shall not be used to 55.14 supplement district revenues or income for the purposes of 55.15 increasing the district's expenditures or budgets. 55.16 Subd. 3. [NO LOCAL APPROVAL.] Pursuant to Minnesota 55.17 Statutes, section 645.023, subdivision 1, paragraph (a), this 55.18 section is effective without local approval. 55.19 Sec. 77. [FISCAL YEARS 2000 TO 2003 DECLINING PUPIL UNIT 55.20 AID; ST. PETER.] 55.21 Subdivision 1. [FISCAL YEAR 2000.] For fiscal year 2000 55.22 only, independent school district No. 508, St. Peter, is 55.23 eligible for declining pupil unit aid equal to the product of 55.24 the general education formula allowance for fiscal year 2000 55.25 times the difference between the district's adjusted marginal 55.26 cost pupil units for the 1996-1997 school year and the 55.27 district's adjusted marginal cost pupil units for the 1999-2000 55.28 school year. 55.29 Subd. 2. [FISCAL YEAR 2001.] For fiscal year 2001 only, 55.30 independent school district No. 508, St. Peter, is eligible for 55.31 declining pupil unit aid equal to the product of the general 55.32 education formula allowance for fiscal year 2001 times 75 55.33 percent of the difference between the district's adjusted 55.34 marginal cost pupil units for the 1996-1997 school year and the 55.35 district's adjusted marginal cost pupil units for the 2000-2001 55.36 school year. 56.1 Subd. 3. [FISCAL YEAR 2002.] For fiscal year 2002 only, 56.2 independent school district No. 508, St. Peter, is eligible for 56.3 declining pupil unit aid equal to the product of the general 56.4 education formula allowance for fiscal year 2002 times 50 56.5 percent of the difference between the district's adjusted 56.6 marginal cost pupil units for the 1996-1997 school year and the 56.7 district's adjusted marginal cost pupil units for the 2001-2002 56.8 school year. 56.9 Subd. 4. [FISCAL YEAR 2003.] For fiscal year 2003 only, 56.10 independent school district No. 508, St. Peter, is eligible for 56.11 declining pupil unit aid equal to the product of the general 56.12 education formula allowance for fiscal year 2003 times 25 56.13 percent of the difference between the district's adjusted 56.14 marginal cost pupil units for the 1996-1997 school year and the 56.15 district's adjusted marginal cost pupil units for the 2002-2003 56.16 school year. 56.17 Sec. 78. [FISCAL YEARS 2000 to 2002 DECLINING PUPIL UNIT 56.18 AID; CLIMAX, KITTSON CENTRAL, ADA-BORUP, WARREN-ALVARADO-OSLO, 56.19 BRECKENRIDGE, EAST GRAND FORKS, AND STEPHEN-ARGYLE CENTRAL.] 56.20 Subdivision 1. [FISCAL YEAR 2000.] For fiscal year 2000 56.21 only, independent school district Nos. 592, Climax; 2171, 56.22 Kittson Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 56.23 846, Breckenridge; 595, East Grand Forks; and 2856, 56.24 Stephen-Argyle Central are eligible for declining pupil unit aid 56.25 equal to the product of the general education formula allowance 56.26 for fiscal year 2000 times 75 percent of the difference between 56.27 the districts' adjusted marginal cost pupil units for the 56.28 1996-1997 school year and the districts' adjusted marginal cost 56.29 pupil units for the 1999-2000 school year. 56.30 Subd. 2. [FISCAL YEAR 2001.] For fiscal year 2001 only, 56.31 independent school district Nos. 592, Climax; 2171, Kittson 56.32 Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 56.33 Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 56.34 Central are eligible for declining pupil unit aid equal to the 56.35 product of the general education formula allowance for fiscal 56.36 year 2001 times 50 percent of the difference between the 57.1 districts' adjusted marginal cost pupil units for the 1996-1997 57.2 school year and the districts' adjusted marginal cost pupil 57.3 units for the 2000-2001 school year. 57.4 Subd. 3. [FISCAL YEAR 2002.] For fiscal year 2002 only, 57.5 independent school district Nos. 592, Climax; 2171, Kittson 57.6 Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 57.7 Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 57.8 Central are eligible for declining pupil unit aid equal to the 57.9 product of the general education formula allowance for fiscal 57.10 year 2002 times 25 percent of the difference between the 57.11 districts' adjusted marginal cost pupil units for the 1996-1997 57.12 school year and the districts' adjusted marginal cost pupil 57.13 units for the 2001-2002 school year. 57.14 Sec. 79. [FISCAL YEARS 2000 TO 2007 AIRPORT RUNWAY IMPACT 57.15 AID; RICHFIELD.] 57.16 Subdivision 1. [FISCAL YEAR 2000.] For fiscal year 2000 57.17 only, independent school district No. 280, Richfield, is 57.18 eligible for airport runway impact aid equal to the product of 57.19 the general education formula allowance for fiscal year 2000 57.20 times 25 percent of the pupil units which the district actually 57.21 lost by the 1999-2000 school year as a direct result of the 57.22 impact of the north/south runway. 57.23 Subd. 2. [FISCAL YEAR 2001.] For fiscal year 2001 only, 57.24 independent school district No. 280, Richfield, is eligible for 57.25 airport runway impact aid equal to the product of the general 57.26 education formula allowance for fiscal year 2001 times 25 57.27 percent of the pupil units which the district actually lost by 57.28 the 2000-2001 school year as a direct result of the impact of 57.29 the north/south runway. 57.30 Subd. 3. [FISCAL YEAR 2002.] For fiscal year 2002 only, 57.31 independent school district No. 280, Richfield, is eligible for 57.32 airport runway impact aid equal to the product of the general 57.33 education formula allowance for fiscal year 2002 times 50 57.34 percent of the pupil units which the district actually lost by 57.35 the 2001-2002 school year as a direct result of the impact of 57.36 the north/south runway. 58.1 Subd. 4. [FISCAL YEAR 2003.] For fiscal year 2003 only, 58.2 independent school district No. 280, Richfield, is eligible for 58.3 airport runway impact aid equal to the product of the general 58.4 education formula allowance for fiscal year 2003 times 75 58.5 percent of the pupil units which the district actually lost by 58.6 the 2002-2003 school year as a direct result of the impact of 58.7 the north/south runway. 58.8 Subd. 5. [FISCAL YEAR 2004.] For fiscal year 2004 only, 58.9 independent school district No. 280, Richfield, is eligible for 58.10 airport runway impact aid equal to the product of the general 58.11 education formula allowance for fiscal year 2004 times the pupil 58.12 units which the district actually lost by the 2003-2004 school 58.13 year as a direct result of the impact of the north/south runway. 58.14 Subd. 6. [FISCAL YEAR 2005.] For fiscal year 2005 only, 58.15 independent school district No. 280, Richfield, is eligible for 58.16 airport runway impact aid equal to the product of the general 58.17 education formula allowance for fiscal year 2005 times 75 58.18 percent of the pupil units which the district actually lost by 58.19 the 2004-2005 school year as a direct result of the impact of 58.20 the north/south runway. 58.21 Subd. 7. [FISCAL YEAR 2006.] For fiscal year 2006 only, 58.22 independent school district No. 280, Richfield, is eligible for 58.23 airport runway impact equal to the product of the general 58.24 education formula allowance for fiscal year 2006 times 50 58.25 percent of the pupil units which the district actually lost by 58.26 the 2005-2006 school year as a direct result of the impact of 58.27 the north/south runway. 58.28 Subd. 8. [FISCAL YEAR 2007.] For fiscal year 2007 only, 58.29 independent school district No. 280, Richfield, is eligible for 58.30 airport runway impact aid equal to the product of the general 58.31 education formula allowance for fiscal year 2007 times 25 58.32 percent of the pupil units which the district actually lost by 58.33 the 2006-2007 school year as a direct result of the impact of 58.34 the north/south runway. 58.35 Sec. 80. [DIRECTION TO THE DEPARTMENT.] 58.36 For fiscal year 2000 only, the department of children, 59.1 families, and learning shall make appropriate weighting 59.2 adjustments to fiscal year 1999 pupil units to reflect the 59.3 impact of Minnesota Statutes, section 126C.05, subdivision 5, 59.4 paragraph (b), and subdivision 6, paragraph (b). 59.5 Sec. 81. [CLASS SIZE, ALL-DAY KINDERGARTEN, AND SPECIAL 59.6 EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 59.7 A district is required to reserve $25 in fiscal year 2000 59.8 and $39 in fiscal year 2001 and later per adjusted marginal cost 59.9 pupil unit for class size reduction, all-day kindergarten, or 59.10 for reducing special education student-to-instructor ratios. 59.11 The school board of each district must pass a resolution stating 59.12 which one of these three programs will be funded with this 59.13 reserve. The reserve amount under this section must be 59.14 allocated to the education site as defined in Minnesota 59.15 Statutes, section 123B.04, subdivision 1. 59.16 Sec. 82. [REFERENDUM ALLOWANCE; WESTONKA.] 59.17 Subdivision 1. [REFERENDUM REVENUE 59.18 AMOUNT.] Notwithstanding Minnesota Statutes 1998, section 59.19 126C.17, subdivision 2, the referendum revenue allowance for 59.20 independent school district No. 277, Westonka, for fiscal years 59.21 1998 and later, is the amount actually approved by the 59.22 district's voters by July 1, 1999. 59.23 Subd. 2. [LEVY ADJUSTMENT.] Any levy authority authorized 59.24 under section 1 for fiscal years 1998, 1999, and 2000 may be 59.25 added to the levy limits for independent school district No. 59.26 277, Westonka, for taxes payable in 2000 or 2001. 59.27 Sec. 83. [APPROPRIATIONS.] 59.28 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 59.29 LEARNING.] The sums indicated in this section are appropriated 59.30 from the general fund to the department of children, families, 59.31 and learning for the fiscal years designated. 59.32 Subd. 2. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 59.33 general and supplemental education aid: 59.34 $3,048,212,000 ..... 2000 59.35 $3,196,703,000 ..... 2001 59.36 The 2000 appropriation includes $272,186,000 for 1999 and 60.1 $2,776,026,000 for 2000. 60.2 The 2001 appropriation includes $298,021,000 for 2000 and 60.3 $2,898,682,000 for 2001. 60.4 Subd. 3. [TRANSPORTATION SAFETY.] For student 60.5 transportation safety aid according to Minnesota Statutes, 60.6 section 123B.92, subdivision 4: 60.7 $144,000 ..... 2000 60.8 The 2000 appropriation includes $144,000 for 1999. 60.9 Subd. 4. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 60.10 transportation of pupils attending post-secondary institutions 60.11 according to Minnesota Statutes, section 124D.09, or for 60.12 transportation of pupils attending nonresident districts 60.13 according to Minnesota Statutes, section 124D.03: 60.14 $102,000 ..... 2000 60.15 $102,000 ..... 2001 60.16 Any balance in the first year does not cancel but is 60.17 available in the second year. 60.18 Subd. 5. [DISTRICT COOPERATION REVENUE.] For district 60.19 cooperation revenue aid: 60.20 $5,940,000 ..... 2000 60.21 $ 563,000 ..... 2001 60.22 The 2000 appropriation includes $869,000 for 1999 and 60.23 $5,071,000 for 2000. 60.24 The 2001 appropriation includes $563,000 for 2000 and $0 60.25 for 2001. 60.26 Subd. 6. [EMILY CHARTER SCHOOL GRANT.] For Emily Charter 60.27 School to correct for the impact of over reporting of 60.28 compensatory revenue: 60.29 $68,000 ..... 2000 60.30 This appropriation is available until June 30, 2001. 60.31 Subd. 7. [SUCCESS ACADEMY CHARTER SCHOOL.] For the Success 60.32 Academy charter school for compensatory pupils not counted in 60.33 the 1998-1999 school year compensatory revenue calculation 60.34 because of an expansion to a new site: 60.35 $127,000 ..... 2000 60.36 This appropriation is available until June 30, 2001. 61.1 Subd. 8. [TRANSITION COMPENSATORY GRANTS.] (a) For 61.2 transition compensatory grants to school districts who received 61.3 additional compensatory grants under Laws 1998, chapter 398, 61.4 article 1, section 50, subdivision 4: 61.5 $5,350,000 ..... 2000 61.6 Of this amount: 61.7 (1) $3,950,000 is for a grant to independent school 61.8 district No. 11, Anoka-Hennepin; 61.9 (2) $250,000 is for a grant to independent school district 61.10 No. 281, Robbinsdale; 61.11 (3) $200,000 is for a grant to independent school district 61.12 No. 625, St. Paul; 61.13 (4) $450,000 is for a grant to independent school district 61.14 No. 709, Duluth; 61.15 (5) $400,000 is for a grant to independent school district 61.16 No. 279, Osseo; and 61.17 (6) $100,000 is for a grant to independent school district 61.18 No. 535, Rochester. 61.19 (b) In order for the district to receive a transition 61.20 compensatory grant under this subdivision, the district must 61.21 comply with Minnesota Statutes, section 123B.143, subdivision 1, 61.22 clause (5). 61.23 (c) This appropriation is available until June 30, 2001. 61.24 Subd. 9. [RANGE ASSOCIATION OF MUNICIPALITIES AND 61.25 SCHOOLS.] For a grant to the range association of municipalities 61.26 and schools to provide a coordinated response to declining 61.27 enrollment in the region's school districts, including analysis 61.28 of curriculum, transportation, and district administration, and 61.29 to coordinate planning for the establishment of an area 61.30 vocational-technical training center open to all high school 61.31 students in the region: 61.32 $250,000 ..... 2000 61.33 This appropriation is available until June 30, 2001. 61.34 Subd. 10. [DECLINING PUPIL UNIT AID.] For declining pupil 61.35 unit aid: 61.36 $2,237,000 ..... 2000 62.1 $2,036,000 ..... 2001 62.2 Subd. 11. [AIRPORT RUNWAY IMPACT AID.] For airport runway 62.3 impact aid: 62.4 $31,000 ..... 2000 62.5 $66,000 ..... 2001 62.6 Subd. 12. [MAGNET SCHOOL INTEGRATION REVENUE.] For magnet 62.7 school integration revenue: 62.8 $64,000 ..... 2000 62.9 $140,000 ..... 2001 62.10 Subd. 13. [MARGINAL COST TRANSITION GRANTS.] (a) For 62.11 marginal cost transition grants to school districts affected by 62.12 the change to marginal cost pupil units: 62.13 $3,085,000 ..... 2000 62.14 Of this amount: 62.15 (1) $10,000 is for a grant to independent school district 62.16 No. 12, Centennial; 62.17 (2) $50,000 is for a grant to independent school district 62.18 No. 94, Cloquet; 62.19 (3) $120,000 is for a grant to independent school district 62.20 No. 97, Moose Lake; 62.21 (4) $60,000 is for a grant to independent school district 62.22 No. 51, Foley; 62.23 (5) $75,000 is for a grant to independent school district 62.24 No. 138, North Branch; 62.25 (6) $300,000 is for a grant to independent school district 62.26 No. 196, Rosemount-Apple Valley-Eagan; 62.27 (7) $10,000 is for a grant to independent school district 62.28 No. 227, Chatfield; 62.29 (8) $20,000 is for a grant to independent school district 62.30 No. 333, Ogilvie; 62.31 (9) $15,000 is for a grant to independent school district 62.32 No. 361, International Falls; 62.33 (10) $10,000 is for a grant to independent school district 62.34 No. 403, Ivanhoe; 62.35 (11) $40,000 is for a grant to independent school district 62.36 No. 463, Eden Valley-Watkins; 63.1 (12) $250,000 is for a grant to independent school district 63.2 No. 466, Dassel-Cokato; 63.3 (13) $135,000 is for a grant to independent school district 63.4 No. 482, Little Falls; 63.5 (14) $30,000 is for a grant to independent school district 63.6 No. 484, Pierz; 63.7 (15) $10,000 is for a grant to independent school district 63.8 No. 547, Parkers Prairie; 63.9 (16) $40,000 is for a grant to independent school district 63.10 No. 553, New York Mills; 63.11 (17) $25,000 is for a grant to independent school district 63.12 No. 577, Willow River; 63.13 (18) $15,000 is for a grant to independent school district 63.14 No. 584, Ruthton; 63.15 (19) $15,000 is for a grant to independent school district 63.16 No. 630, Red Lake Falls; 63.17 (20) $210,000 is for a grant to independent school district 63.18 No. 700, Hermantown; 63.19 (21) $20,000 is for a grant to independent school district 63.20 No. 707, Nett Lake; 63.21 (22) $85,000 is for a grant to independent school district 63.22 No. 721, New Prague; 63.23 (23) $400,000 is for a grant to independent school district 63.24 No. 748, Sartell; 63.25 (24) $920,000 is for a grant to independent school district 63.26 No. 831, Forest Lake; 63.27 (25) $10,000 is for a grant to independent school district 63.28 No. 879, Delano; 63.29 (26) $10,000 is for a grant to independent school district 63.30 No. 881, Maple Lake; 63.31 (27) $20,000 is for a grant to independent school district 63.32 No. 882, Monticello; 63.33 (28) $30,000 is for a grant to independent school district 63.34 No. 883, Rockford; 63.35 (29) $125,000 is for a grant to independent school district 63.36 No. 885, St. Michael-Albertville; 64.1 (30) $15,000 is for a grant to independent school district 64.2 No. 2149, Minnewaska; and 64.3 (31) $10,000 is for a grant to independent school district 64.4 No. 2155, Wadena-Deer Creek. 64.5 (b) This appropriation is available until June 30, 2001. 64.6 Sec. 84. [REPEALER.] 64.7 (a) Minnesota Statutes 1998, sections 123B.89; 123B.92, 64.8 subdivisions 6, 7, 8, and 10; and 127A.41, subdivisions 8 and 9, 64.9 are repealed. Laws 1997, First Special Session chapter 4, 64.10 article 1, section 62, subdivision 5, is repealed. 64.11 (b) Minnesota Statutes 1998, sections 120B.05; and 123B.64, 64.12 subdivision 4, are repealed effective for revenue for fiscal 64.13 year 2000. 64.14 (c) Minnesota Statutes 1998, sections 123B.64, subdivisions 64.15 1, 2, and 3; and 124D.65, subdivisions 1, 2, and 3, are repealed 64.16 effective for revenue for fiscal year 2001. 64.17 (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 64.18 subdivision 4; and 126C.06, are repealed effective the day 64.19 following final enactment. 64.20 Sec. 85. [EFFECTIVE DATES.] 64.21 When preparing the prekindergarten through grade 12 64.22 education conference committee report for adoption by the 64.23 legislature, the revisor shall combine all effective date 64.24 notations in this article into this effective dates section. 64.25 ARTICLE 2 64.26 SPECIAL PROGRAMS 64.27 Section 1. Minnesota Statutes 1998, section 121A.41, 64.28 subdivision 10, is amended to read: 64.29 Subd. 10. [SUSPENSION.] (a) "Suspension" means an action 64.30 by the school administration, under rules promulgated by the 64.31 school board, prohibiting a pupil from attending school for a 64.32 period of no more than ten school days. If a suspension is 64.33 longer than five days, the suspending administrator must provide 64.34 the superintendent with a reason for the longer suspension. 64.35 This definition does not apply to dismissal from school for one 64.36 school day or less, except as provided in federal law for a 65.1 student with a disability. Each suspension action may include a 65.2 readmission plan. The readmission plan shall include, where 65.3 appropriate, a provision for implementing alternative 65.4 educational services upon readmission and may not be used to 65.5 extend the current suspension. The school administration may 65.6 not impose consecutive suspensions against the same pupil for 65.7 the same course of conduct, or incident of misconduct, except 65.8 where the pupil will create an immediate and substantial danger 65.9 to self or to surrounding persons or property, or where the 65.10 district is in the process of initiating an expulsion, in which 65.11 case the school administration may extend the suspension to a 65.12 total of 15 days. In the case of a pupil with a 65.13 disability,school districts must comply with applicable federal65.14lawthe pupil's individual education plan team must meet 65.15 immediately but not more than ten school days after the date on 65.16 which the decision to remove the pupil from the pupil's current 65.17 education placement is made. The individual education plan team 65.18 shall at that meeting: 65.19 (1) conduct a review of the relationship between the 65.20 pupil's disability and the behavior subject to disciplinary 65.21 action; and 65.22 (2) determine the appropriateness of the pupil's education 65.23 plan. 65.24 (b) The requirements of the individual education plan team 65.25 meeting apply when: 65.26 (1) the parent requests a meeting; 65.27 (2) the pupil is removed from the pupil's current placement 65.28 for five or more consecutive days; or 65.29 (3) the pupil's total days of removal from the pupil's 65.30 placement during the school year exceed ten cumulative days in a 65.31 school year. 65.32 The school administration shall implement alternative 65.33 educational services when the suspension exceeds five days. A 65.34 separate administrative conference is required for each period 65.35 of suspension. 65.36 Sec. 2. Minnesota Statutes 1998, section 121A.43, is 66.1 amended to read: 66.2 121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 66.3 DISABILITY.] 66.4 When a pupil who has an individual education plan is 66.5 excluded or expelled under sections 121A.40 to 121A.56 for 66.6 misbehavior that is not a manifestation of the pupil's 66.7 disability, the district shall continue to provide special 66.8 education and related services after a period of suspension, if 66.9 suspension is imposed. The district shall initiate a review of 66.10 the pupil's individual education planwithin five school days of66.11 and conduct a review of the relationship between the pupil's 66.12 disability and the behavior subject to disciplinary action and 66.13 determine the appropriateness of the pupil's education plan 66.14 before commencing an expulsion,or exclusion, or a suspension. 66.15 Sec. 3. Minnesota Statutes 1998, section 122A.26, is 66.16 amended by adding a subdivision to read: 66.17 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 66.18 subdivision 2, a person who possesses a bachelor's or master's 66.19 degree in English as a second language, applied linguistics, 66.20 bilingual education, or who possesses a related degree as 66.21 approved by the commissioner of children, families, and 66.22 learning, shall be permitted to teach English as a second 66.23 language in an adult basic education program that receives 66.24 funding under section 124D.53. 66.25 Sec. 4. Minnesota Statutes 1998, section 122A.28, is 66.26 amended to read: 66.27 122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 66.28 LICENSURE REQUIREMENTS.] 66.29 Subdivision 1. [K-12 LICENSE TO TEACH DEAF AND 66.30 HARD-OF-HEARING STUDENTS.] The board of teaching must review and 66.31 determine appropriate licensure requirements for a candidate for 66.32 a license or an applicant for a continuing license to teach deaf 66.33 and hard-of-hearing students in prekindergarten through grade 12. 66.34 In addition to other requirements, a candidate must demonstrate 66.35 the minimum level of proficiency in American sign language as 66.36 determined by the board. 67.1 Subd. 2. [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 67.2 PROGRAMS.] (a) The board of teaching shall adopt a separate 67.3 licensure rule for a candidate for a license or an applicant for 67.4 a continuing license to teach in oral/aural deaf education 67.5 programs or to provide services, including itinerant oral/aural 67.6 deaf education services, to deaf and hard-of-hearing students in 67.7 prekindergarten through grade 12. 67.8 (b) The board shall design rule requirements for teaching 67.9 oral/aural deaf education in collaboration with representatives 67.10 of parents and educators of deaf and hard-of-hearing students, 67.11 post-secondary programs preparing teachers of deaf and 67.12 hard-of-hearing students, and the department of children, 67.13 families, and learning. 67.14 (c) Rule requirements for teaching oral/aural deaf 67.15 education shall reflect best practice research in oral/aural 67.16 deaf education. Advanced competencies in teaching deaf and 67.17 hard-of-hearing students through oral/aural modes shall be 67.18 included. 67.19 (d) Licensure requirements for teachers of oral/aural deaf 67.20 education must include minimum competency in American sign 67.21 language, but are not subject to the guidelines established in 67.22 Laws 1993, chapter 224, article 3, section 32, as amended by 67.23 Laws 1998, chapter 398, article 2, section 47. The signed 67.24 communication proficiency interview shall not be required for 67.25 teachers licensed to teach deaf and hard-of-hearing students 67.26 through oral/aural deaf education methods. 67.27 (e) Requirements for teachers or oral/aural deaf education 67.28 shall include appropriate continuing education requirements for 67.29 renewing this licensure. 67.30 Sec. 5. Minnesota Statutes 1998, section 123A.05, 67.31 subdivision 2, is amended to read: 67.32 Subd. 2. [RESERVE REVENUE.] Each district that is a member 67.33 of an area learning center must reserve revenue in an amount 67.34 equal to at least 90 percent of the district average general 67.35 education revenueless compensatoryper pupil unit minus an 67.36 amount equal to the product of the formula allowance according 68.1 to section 126C.10, subdivision 2, times .0485, calculated 68.2 without basic skills revenueunit, transportation sparsity 68.3 revenue, and the transportation portion of the transition 68.4 revenue adjustment, times the number of pupil units attending an 68.5 area learning center program under this section. The amount of 68.6 reserved revenue under this subdivision may only be spent on 68.7 program costs associated with the area learning center. 68.8 Compensatory revenue must be allocated according to section 68.9 126C.15, subdivision 2. 68.10 Sec. 6. Minnesota Statutes 1998, section 123A.05, 68.11 subdivision 3, is amended to read: 68.12 Subd. 3. [ACCESS TO SERVICES.] A center shall have access 68.13 to the district's regular education programs, special education 68.14 programs, technology facilities, and staff. It may contract 68.15 with individuals or post-secondary institutions. It shall seek 68.16 the involvement of community education programs, post-secondary 68.17 institutions, interagency collaboratives, culturally based 68.18 organizations, mutual assistance associations, and other 68.19 community resources, businesses, and other federal, state, and 68.20 local public agencies. 68.21 Sec. 7. Minnesota Statutes 1998, section 123A.06, 68.22 subdivision 1, is amended to read: 68.23 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 68.24 services of a center must focus on academic and learning skills, 68.25 applied learning opportunities, trade and vocational skills, 68.26 work-based learning opportunities, work experience, youth 68.27 service to the community,andtransition services, and English 68.28 language and literacy programs for children whose primary 68.29 language is a language other than English. Applied learning, 68.30 work-based learning, and service learning may best be developed 68.31 in collaboration with a local education and transitions 68.32 partnership, culturally based organizations, mutual assistance 68.33 associations, or other community resources. In addition to 68.34 offering programs, the center shall coordinate the use of other 68.35 available educational services, special education services, 68.36 social services, health services, and post-secondary 69.1 institutions in the community and services area. 69.2 (b) Consistent with the requirements of sections 121A.40 to 69.3 121A.56, a school district may provide an alternative education 69.4 program for a student who is within the compulsory attendance 69.5 age under section 120A.20, and who is involved in severe or 69.6 repeated disciplinary action. 69.7 Sec. 8. Minnesota Statutes 1998, section 123A.06, 69.8 subdivision 2, is amended to read: 69.9 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 69.10 programs for secondary pupils and adults. A center may also 69.11 provide programs and services for elementary and secondary 69.12 pupils who are not attending the center to assist them in being 69.13 successful in school. A center shall use research-based best 69.14 practices and offer bilingual education programs to students and 69.15 their parents whose primary language is a language other than 69.16 English. An individual education plan team may identify a 69.17 center as an appropriate placement to the extent a center can 69.18 provide the student with the appropriate special education 69.19 services described in the student's plan. Pupils eligible to be 69.20 served are those age five to adults 22 and older who qualify 69.21 under the graduation incentives program in section 124D.68, 69.22 subdivision 2, or those pupils who are eligible to receive 69.23 special education services under sections 125A.03 to 125A.24, 69.24 and 125A.65. 69.25 Sec. 9. Minnesota Statutes 1998, section 124D.081, 69.26 subdivision 3, is amended to read: 69.27 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 69.28 shall rank all school sites with kindergarten programs that do 69.29 not exclusively serve students under sections 125A.03 to 69.30 125A.24, and 125A.65. The ranking must be from highest to 69.31 lowest based on the site's free and reduced lunch count as a 69.32 percent of the fall enrollment using the preceding October 1 69.33 enrollment data. Once a school site is calculated to be 69.34 eligible, it remains eligible for the duration of the pilot 69.35 program, unless the site's ranking falls below the state average 69.36 for elementary schools. For each school site, the percentage 70.1 used to calculate the ranking must be the greater of (1) the 70.2 percent of the fall kindergarten enrollment receiving free and 70.3 reduced lunch, or (2) the percent of the total fall enrollment 70.4 receiving free and reduced lunch. The list of ranked sites must 70.5 be separated into the following geographic areas: Minneapolis 70.6 district, St. Paul district, suburban Twin Cities districts in 70.7 the seven-county metropolitan area, and school districts in 70.8 greater Minnesota. 70.9 (b) The commissioner shall establish a process and 70.10 timelines to qualify school sites for the next school year. 70.11 School sites must be qualified in each geographic area from the 70.12 list of ranked sites until the estimated revenue available for 70.13 this program has been allocated. The total estimated revenue 70.14 must be distributed to qualified school sites in each geographic 70.15 area as follows: 25 percent for Minneapolis sites, 25 percent 70.16 for St. Paul sites, 25 percent for suburban Twin Cities sites, 70.17 and 25 percent for greater Minnesota. 70.18 Sec. 10. Minnesota Statutes 1998, section 124D.081, 70.19 subdivision 8, is amended to read: 70.20 Subd. 8. [EXPIRATION.] This section applies for fiscal 70.21 years 1997, 1998,and1999, 2000, and 2001, and expires June 30, 70.2219992001. 70.23 Sec. 11. Minnesota Statutes 1998, section 124D.454, 70.24 subdivision 5, is amended to read: 70.25 Subd. 5. [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 70.26 REVENUE.] The state total school-to-work program-disabled 70.27 revenue for fiscal year19982000 equals$8,924,000$8,982,000. 70.28 The state total school-to-work program-disabled revenue for 70.29 fiscal year19992001 equals$8,976,000$8,967,000. The state 70.30 total school-to-work program-disabled revenue for later fiscal 70.31 years equals: 70.32 (1) the state total school-to-work program-disabled revenue 70.33 for the preceding fiscal year; times 70.34 (2) the program growth factor; times 70.35 (3) the ratio of the state total average daily membership 70.36 for the current fiscal year to the state total average daily 71.1 membership for the preceding fiscal year. 71.2 Sec. 12. Minnesota Statutes 1998, section 124D.52, is 71.3 amended by adding a subdivision to read: 71.4 Subd. 4. [ENGLISH AS A SECOND LANGUAGE PROGRAMS.] A person 71.5 may teach an English as a second language class conducted at a 71.6 worksite, if the person meets the requirements of section 71.7 122A.19, subdivision 1, clause (a), regardless of whether that 71.8 person holds a teacher's license. A person teaching English as 71.9 a second language for an approved adult basic education program 71.10 must possess a bachelor's or master's degree in English as a 71.11 second language, applied linguistics, bilingual education, or a 71.12 related degree as approved by the commissioner. 71.13 Sec. 13. Minnesota Statutes 1998, section 124D.65, 71.14 subdivision 4, is amended to read: 71.15 Subd. 4. [STATE TOTAL LEP REVENUE.] (a) The state total 71.16 limited English proficiency programs revenue for fiscal 71.17 year19982000 equals$14,629,000$27,454,000. The state total 71.18 limited English proficiency programs revenue for fiscal 71.19 year19992001 equals$16,092,000$31,752,000. 71.20 (b) The state total limited English proficiency programs 71.21 revenue for later fiscal years equals: 71.22 (1) the state total limited English proficiency programs 71.23 revenue for the preceding fiscal year; times 71.24 (2) the program growth factor under section 125A.76 71.25 subdivision 1; times 71.26 (3) the ratio of the state total number of pupils with 71.27 limited English proficiency for the current fiscal year to the 71.28 state total number of pupils with limited English proficiency 71.29 for the preceding fiscal year. 71.30 Sec. 14. Minnesota Statutes 1998, section 124D.70, is 71.31 amended to read: 71.32 124D.70 [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] 71.33 In addition to revenue received under sections 124D.68, 71.34 subdivisions 8 and 9, and 124D.69, subdivision 1, a district 71.35 shall receive additional revenue for homeless pupils who are 71.36 eligible to participate in the graduation incentives program 72.1 according to section 124D.68, subdivision 1, paragraph (a), 72.2 clause (9), equal to $100 per pupil unit. The additional 72.3 revenue received must be based on the district's number of 72.4 homeless students enrolled on October 1. The revenue received 72.5 under this section shall be used for expanding education 72.6 services to include preschool, after-school, or summer school 72.7 programs to provide transition and follow-up services to 72.8 homeless pupils who are placed or mainstreamed in a district 72.9 school, or to provide parent education and support services. 72.10 The additional revenue shall be paid to the public or nonprofit 72.11 school program providing services to homeless pupils. A student 72.12 shall not be considered homeless under this section if the 72.13 student was displaced from home as a result of a natural 72.14 disaster. 72.15 Sec. 15. [124D.701] [CARE AND TREATMENT INSTRUCTIONAL 72.16 AID.] 72.17 The state must pay each district up to 50 percent of the 72.18 nonreimbursed instructional expenses incurred when a nondisabled 72.19 child has been placed in a care and treatment facility, or 72.20 detention facility, according to section 125A.51. In order to 72.21 receive reimbursement according to this section, the facility 72.22 must provide an education program, which has been approved by 72.23 the commissioner according to section 125A.515. 72.24 In a form and manner determined by the commissioner, the 72.25 district may bill the state no more than 50 percent of the 72.26 allowable expenses incurred in providing the services minus the 72.27 general education revenue of the district for the child and any 72.28 other aid earned on behalf of the child. In accordance with 72.29 section 125A.80, the commissioner shall determine allowable 72.30 expenses and maximum reimbursable rates for each type of service. 72.31 (Effective Date: Section 15 (124D.701) is effective July 72.32 1, 2000.) 72.33 Sec. 16. Minnesota Statutes 1998, section 125A.023, is 72.34 amended to read: 72.35 125A.023 [COORDINATED INTERAGENCY SERVICES.] 72.36 Subdivision 1. [CITATION.] This section and section 73.1 125A.027 shall be cited as the "Interagency Services for 73.2 Children with Disabilities Act." 73.3 Subd. 2. [PURPOSE.] It is the policy of the state to 73.4 develop and implement a coordinated, multidisciplinary, 73.5 interagency intervention service system for children ages three 73.6 to2221 with disabilities. 73.7 Subd. 3. [DEFINITIONS.] For purposes of this section and 73.8 section 125A.027, the following terms have the meanings given 73.9 them: 73.10 (a) "Health plan" means: 73.11 (1) a health plan under section 62Q.01, subdivision 3; 73.12 (2) a county-based purchasing plan under section 256B.692; 73.13 (3) a self-insured health plan established by a local 73.14 government under section 471.617; or 73.15 (4) self-insured health coverage provided by the state to 73.16 its employees or retirees. 73.17 (b) For purposes of this section, "health plan company" 73.18 means an entity that issues a health plan as defined in 73.19 paragraph (a). 73.20 (c) "Individual interagency intervention plan" means a 73.21 standardized written plan describing those programs or services 73.22 and the accompanying funding sources available to eligible 73.23 children with disabilities. 73.24 (d) "Interagency intervention service system" means a 73.25 system that coordinates services and programs required in state 73.26 and federal law to meet the needs of eligible children with 73.27 disabilities ages three to2221, including: 73.28 (1) services provided under the following programs or 73.29 initiatives administered by state or local agencies: 73.30 (i) the maternal and child health program under title V of 73.31 the Social Security Act, United States Code, title 42, sections 73.32 701 to 709; 73.33 (ii) the Individuals with Disabilities Education Act under 73.34 United States Code, title 20, chapter 33, subchapter II, 73.35 sections 1411 to 1420; 73.36 (iii) medical assistance under the Social Security Act, 74.1 United States Code, title 42, chapter 7, subchapter XIX, section 74.2 1396, et seq.; 74.3 (iv) the Developmental Disabilities Assistance and Bill of 74.4 Rights Act, United States Code, title 42, chapter 75, subchapter 74.5 II, sections 6021 to 6030, Part B; 74.6 (v) the Head Start Act, United States Code, title 42, 74.7 chapter 105, subchapter II, sections 9831 to 9852; 74.8 (vi) rehabilitation services provided under chapter 268A; 74.9 (vii) Juvenile Court Act services provided under sections 74.10 260.011 to 260.301; 74.11 (viii) the children's mental health collaboratives under 74.12 section 245.493; 74.13 (ix) the family service collaboratives under section 74.14 124D.23; 74.15 (x) the family community support plan under section 74.16 245.4881, subdivision 4; 74.17 (xi) the MinnesotaCare program under chapter 256L; 74.18 (xii) the community health services grants under chapter 74.19 145; 74.20 (xiii) the Community Social Services Act funding under the 74.21 Social Security Act, United States Code, title 42, sections 1397 74.22 to 1397f; and 74.23 (xiv) the community interagency transition committees under 74.24 section 125A.22; 74.25 (2) services provided under a health plan in conformity 74.26 with an individual family service plan or an individual 74.27 education plan; and 74.28 (3) additional appropriate services that local agencies and 74.29 counties provide on an individual need basis upon determining 74.30 eligibility and receiving a request from the interagency early 74.31 intervention committee and the child's parent. 74.32 (e) "Children with disabilities" has the meaning given in 74.33 section 125A.02. 74.34 (f) A "standardized written plan" means those individual 74.35 services or programs available through the interagency 74.36 intervention service system to an eligible child other than the 75.1 services or programs described in the child's individual 75.2 education plan or the child's individual family service plan. 75.3 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 75.4 shall convene an 18-member interagency committee to develop and 75.5 implement a coordinated, multidisciplinary, interagency 75.6 intervention service system for children ages three to2221 75.7 with disabilities. The commissioners of commerce, children, 75.8 families, and learning, health, human rights, human services, 75.9 economic security, and corrections shall each appoint two 75.10 committee members from their departments; the association of 75.11 Minnesota counties shall appoint two county representatives, one 75.12 of whom must be an elected official, as committee members; and 75.13 the Minnesota school boards association and the school nurse 75.14 association of Minnesota shall each appoint one committee 75.15 member. The committee shall select a chair from among its 75.16 members. 75.17 (b) The committee shall: 75.18 (1) identify and assist in removing state and federal 75.19 barriers to local coordination of services provided to children 75.20 with disabilities; 75.21 (2) identify adequate, equitable, and flexible funding 75.22 sources to streamline these services; 75.23 (3) develop guidelines for implementing policies that 75.24 ensure a comprehensive and coordinated system of all state and 75.25 local agency services, including multidisciplinary assessment 75.26 practices for children with disabilities ages three to2221; 75.27 (4) develop, consistent with federal law, a standardized 75.28 written plan for providing services to a child with 75.29 disabilities; 75.30 (5) identify how current systems for dispute resolution can 75.31 be coordinated and develop guidelines for that coordination; 75.32 (6) develop an evaluation process to measure the success of 75.33 state and local interagency efforts in improving the quality and 75.34 coordination of services to children with disabilities ages 75.35 three to2221; 75.36 (7) develop guidelines to assist the governing boards of 76.1 the interagency early intervention committees in carrying out 76.2 the duties assigned in section 125A.027, subdivision 1, 76.3 paragraph (b); and 76.4 (8) carry out other duties necessary to develop and 76.5 implement within communities a coordinated, multidisciplinary, 76.6 interagency intervention service system for children with 76.7 disabilities. 76.8 (c) The committee shall consult on an ongoing basis with 76.9 the state education advisory committee for special education and 76.10 the governor's interagency coordinating council in carrying out 76.11 its duties under this section, including assisting the governing 76.12 boards of the interagency early intervention committees. 76.13 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 76.14 commissioner of children, families, and learning, based on 76.15 recommendations from the state interagency committee, shall 76.16 issue a request for proposals by January 1, 1999, for grants to 76.17 the governing boards of interagency intervention committees 76.18 under section 125A.027 or a combination of one or more counties 76.19 and school districts to establish five voluntary interagency 76.20 intervention demonstration projects. One grant shall be used to 76.21 implement a coordinated service system for all eligible children 76.22 with disabilities up to age five who received services under 76.23 sections 125A.26 to 125A.48. One grant shall be used to 76.24 implement a coordinated service system for a population of 76.25 minority children with disabilities from ages 12 to2221, who 76.26 may have behavioral problems and are in need of transitional 76.27 services. Each project must be operational by July 1, 1999. 76.28 The governing boards of the interagency early intervention 76.29 committees and the counties and school districts receiving 76.30 project grants must develop efficient ways to coordinate 76.31 services and funding for children with disabilities ages three 76.32 to2221, consistent with the requirements of this section and 76.33 section 125A.027 and the guidelines developed by the state 76.34 interagency committee under this section. 76.35 (b) The state interagency committee shall evaluate the 76.36 demonstration projects and provide the evaluation results to 77.1 interagency early intervention committees. 77.2 Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in this section 77.3 and section 125A.027 relieves a health plan company, third party 77.4 administrator or other third-party payer of an obligation to pay 77.5 for, or changes the validity of an obligation to pay for, 77.6 services provided to children with disabilities ages three to2277.7 21 and their families. 77.8 Subd. 7. [AGENCY OBLIGATION.] Nothing in this section and 77.9 section 125A.027 removes the obligation of the state, counties, 77.10 local school districts, a regional agency, or a local agency or 77.11 organization to comply with any federal or state law that 77.12 mandates responsibility for finding, assessing, delivering, 77.13 assuring, or paying for education or related services for 77.14 children with disabilities and their families. 77.15 (Effective date: Section 16 (125A.023) is effective July 77.16 1, 2000.) 77.17 Sec. 17. Minnesota Statutes 1998, section 125A.027, is 77.18 amended to read: 77.19 125A.027 [INTERAGENCY EARLY INTERVENTION COMMITTEE 77.20 RESPONSIBILITIES.] 77.21 Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing 77.22 boards of the interagency early intervention committees are 77.23 responsible for developing and implementing interagency policies 77.24 and procedures to coordinate services at the local level for 77.25 children with disabilities ages three to2221 under guidelines 77.26 established by the state interagency committee under section 77.27 125A.023, subdivision 4. Consistent with the requirements in 77.28 this section and section 125A.023, the governing boards of the 77.29 interagency early intervention committees shall organize as a 77.30 joint powers board under section 471.59 or enter into an 77.31 interagency agreement that establishes a governance structure. 77.32 (b) The governing board of each interagency early 77.33 intervention committee as defined in section 125A.30, paragraph 77.34 (a), which may include a juvenile justice professional, shall: 77.35 (1) identify and assist in removing state and federal 77.36 barriers to local coordination of services provided to children 78.1 with disabilities; 78.2 (2) identify adequate, equitable, and flexible use of 78.3 funding by local agencies for these services; 78.4 (3) implement policies that ensure a comprehensive and 78.5 coordinated system of all state and local agency services, 78.6 including multidisciplinary assessment practices, for children 78.7 with disabilities ages three to2221; 78.8 (4) use a standardized written plan for providing services 78.9 to a child with disabilities developed under section 125A.023; 78.10 (5) access the coordinated dispute resolution system and 78.11 incorporate the guidelines for coordinating services at the 78.12 local level, consistent with section 125A.023; 78.13 (6) use the evaluation process to measure the success of 78.14 the local interagency effort in improving the quality and 78.15 coordination of services to children with disabilities ages 78.16 three to2221 consistent with section 125A.023; 78.17 (7) develop a transitional plan for children moving from 78.18 the interagency early childhood intervention system under 78.19 sections 125A.259 to 125A.48 into the interagency intervention 78.20 service system under this section; 78.21 (8) coordinate services and facilitate payment for services 78.22 from public and private institutions, agencies, and health plan 78.23 companies; and 78.24 (9) share needed information consistent with state and 78.25 federal data practices requirements. 78.26 Subd. 2. [APPROPRIATE AND NECESSARY SERVICES.] (a) 78.27 Parents, physicians, other health care professionals including 78.28 school nurses, and education and human services providers 78.29 jointly must determine appropriate and necessary services for 78.30 eligible children with disabilities ages three to2221. The 78.31 services provided to the child under this section must conform 78.32 with the child's standardized written plan. The governing board 78.33 of an interagency early intervention committee must provide 78.34 those services contained in a child's individual education plan 78.35 and those services for which a legal obligation exists. 78.36 (b) Nothing in this section or section 125A.023 increases 79.1 or decreases the obligation of the state, county, regional 79.2 agency, local school district, or local agency or organization 79.3 to pay for education, health care, or social services. 79.4 (c) A health plan may not exclude any medically necessary 79.5 covered service solely because the service is or could be 79.6 identified in a child's individual family service plan, 79.7 individual education plan, a plan established under section 504 79.8 of the federal Rehabilitation Act of 1973, or a student's 79.9 individual health plan. This paragraph reaffirms the obligation 79.10 of a health plan company to provide or pay for certain medically 79.11 necessary covered services, and encourages a health plan company 79.12 to coordinate this care with any other providers of similar 79.13 services. Also, a health plan company may not exclude from a 79.14 health plan any medically necessary covered service such as an 79.15 assessment or physical examination solely because the resulting 79.16 information may be used for an individual education plan or a 79.17 standardized written plan. 79.18 Subd. 3. [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 79.19 governing boards of interagency early intervention committees 79.20 statewide must implement a coordinated service system for 79.21 children up to age five with disabilities consistent with the 79.22 requirements of this section and section 125A.023 and the 79.23 evaluation results from the demonstration projects under section 79.24 125A.023, subdivision 5. Children with disabilities up to the 79.25 age of2221 shall be eligible for coordinated services and 79.26 their eligibility to receive such services under this section 79.27 shall be phased in over a four-year period as follows: 79.28 (1) July 1, 2001, children up to age nine become eligible; 79.29 (2) July 1, 2002, children up to age 14 become eligible; 79.30 and 79.31 (3) July 1, 2003, children up to age2221 become eligible. 79.32 (Effective date: Section 17 (125A.027) is effective July 79.33 1, 2001.) 79.34 Sec. 18. Minnesota Statutes 1998, section 125A.03, is 79.35 amended to read: 79.36 125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 80.1 DISABILITY.] 80.2 (a) As defined in paragraph (b),to the extent required in80.3federal law as of July 1, 1999,every district must provide 80.4 special instruction and services, either within the district or 80.5 in another district, for children with a disability who are 80.6 residents of the district and who are disabled as set forth in 80.7 section 125A.02. 80.8 (b) Notwithstanding any age limits in laws to the contrary, 80.9 special instruction and services must be provided from birth 80.10 untilSeptemberJuly 1 after the child with a disability becomes 80.112221 years old but shall not extend beyond secondary school or 80.12 its equivalent, except as provided in section 124D.68, 80.13 subdivision 2. Local health, education, and social service 80.14 agencies must refer children under age five who are known to 80.15 need or suspected of needing special instruction and services to 80.16 the school district. Districts with less than the minimum 80.17 number of eligible children with a disability as determined by 80.18 the state board must cooperate with other districts to maintain 80.19 a full range of programs for education and services for children 80.20 with a disability. This section does not alter the compulsory 80.21 attendance requirements of section 120A.22. 80.22 (Effective date: Section 18, paragraph (b) (125A.03) is 80.23 effective July 1, 2002.) 80.24 Sec. 19. Minnesota Statutes 1998, section 125A.07, is 80.25 amended to read: 80.26 125A.07 [RULES OF STATE BOARD.] 80.27 (a) As defined in this paragraph,but not to exceed the80.28extent required by federal law as of July 1, 1999,the state 80.29 board must adopt rules relative to qualifications of essential 80.30 personnel, courses of study, methods of instruction, pupil 80.31 eligibility, size of classes, rooms, equipment, supervision, 80.32 parent consultation, and other necessary rules for instruction 80.33 of children with a disability. These rules must provide 80.34 standards and procedures appropriate for the implementation of 80.35 and within the limitations of sections 125A.08 and 125A.09. 80.36 These rules must also provide standards for the discipline, 81.1 control, management, and protection of children with a 81.2 disability. The state board must not adopt rules for pupils 81.3 served primarily in the regular classroom establishing either 81.4 case loads or the maximum number of pupils that may be assigned 81.5 to special education teachers. The state board, in consultation 81.6 with the departments of health and human services, must adopt 81.7 permanent rules for instruction and services for children under 81.8 age five and their families. These rules are binding on state 81.9 and local education, health, and human services agencies. The 81.10 state board must adopt rules to determine eligibility for 81.11 special education services. The rules must include procedures 81.12 and standards by which to grant variances for experimental 81.13 eligibility criteria. The state board must, according to 81.14 section 14.05, subdivision 4, notify a district applying for a 81.15 variance from the rules within 45 calendar days of receiving the 81.16 request whether the request for the variance has been granted or 81.17 denied. If a request is denied, the board must specify the 81.18 program standards used to evaluate the request and the reasons 81.19 for denying the request. 81.20 (b) As provided in this paragraph,but not to exceed the81.21extent required by federal law as of July 1, 1999,the state's 81.22 regulatory scheme should support schools by assuring that all 81.23 state special education rules adopted by the state board result 81.24 in one or more of the following outcomes: 81.25 (1) increased time available to teachers and, where 81.26 appropriate, to support staff including school nurses for 81.27 educating students through direct and indirect instruction; 81.28 (2) consistent and uniform access to effective education 81.29 programs for students with disabilities throughout the state; 81.30 (3) reduced inequalities and conflict, appropriate due 81.31 process hearing procedures and reduced court actions related to 81.32 the delivery of special education instruction and services for 81.33 students with disabilities; 81.34 (4) clear expectations for service providers and for 81.35 students with disabilities; 81.36 (5) increased accountability for all individuals and 82.1 agencies that provide instruction and other services to students 82.2 with disabilities; 82.3 (6) greater focus for the state and local resources 82.4 dedicated to educating students with disabilities; and 82.5 (7) clearer standards for evaluating the effectiveness of 82.6 education and support services for students with disabilities. 82.7 Sec. 20. Minnesota Statutes 1998, section 125A.08, is 82.8 amended to read: 82.9 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 82.10 (a) As defined in this section,to the extent required by82.11federal law as of July 1, 1999,every district must ensure the 82.12 following: 82.13 (1) all students with disabilities are provided the special 82.14 instruction and services which are appropriate to their needs. 82.15 Where the individual education plan team has determined 82.16 appropriate goals and objectives based on the student's needs, 82.17 including the extent to which the student can be included in the 82.18 least restrictive environment, and where there are essentially 82.19 equivalent and effective instruction, related services, or 82.20 assistive technology devices available to meet the student's 82.21 needs, cost to the district may be among the factors considered 82.22 by the team in choosing how to provide the appropriate services, 82.23 instruction, or devices that are to be made part of the 82.24 student's individual education plan. The student's needs and 82.25 the special education instruction and services to be provided 82.26 must be agreed upon through the development of an individual 82.27 education plan. The plan must address the student's need to 82.28 develop skills to live and work as independently as possible 82.29 within the community. By grade 9 or age 14, the plan must 82.30 address the student's needs for transition from secondary 82.31 services to post-secondary education and training, employment, 82.32 community participation, recreation, and leisure and home 82.33 living. In developing the plan, districts must inform parents 82.34 of the full range of transitional goals and related services 82.35 that should be considered. The plan must include a statement of 82.36 the needed transition services, including a statement of the 83.1 interagency responsibilities or linkages or both before 83.2 secondary services are concluded; 83.3 (2) children with a disability under age five and their 83.4 families are provided special instruction and services 83.5 appropriate to the child's level of functioning and needs; 83.6 (3) children with a disability and their parents or 83.7 guardians are guaranteed procedural safeguards and the right to 83.8 participate in decisions involving identification, assessment 83.9 including assistive technology assessment, and educational 83.10 placement of children with a disability; 83.11 (4) eligibility and needs of children with a disability are 83.12 determined by an initial assessment or reassessment, which may 83.13 be completed using existing data under United States Code, title 83.14 20, section 33, et seq.; 83.15 (5) to the maximum extent appropriate, children with a 83.16 disability, including those in public or private institutions or 83.17 other care facilities, are educated with children who are not 83.18 disabled, and that special classes, separate schooling, or other 83.19 removal of children with a disability from the regular 83.20 educational environment occurs only when and to the extent that 83.21 the nature or severity of the disability is such that education 83.22 in regular classes with the use of supplementary services cannot 83.23 be achieved satisfactorily; 83.24 (6) in accordance with recognized professional standards, 83.25 testing and evaluation materials, and procedures used for the 83.26 purposes of classification and placement of children with a 83.27 disability are selected and administered so as not to be 83.28 racially or culturally discriminatory; and 83.29 (7) the rights of the child are protected when the parents 83.30 or guardians are not known or not available, or the child is a 83.31 ward of the state. 83.32 (b) For paraprofessionals employed to work in programs for 83.33 students with disabilities, the school board in each district 83.34 shall ensure that: 83.35 (1) before or immediately upon employment, each 83.36 paraprofessional develops sufficient knowledge and skills in 84.1 emergency procedures, building orientation, roles and 84.2 responsibilities, confidentiality, vulnerability, and 84.3 reportability, among other things, to begin meeting the needs of 84.4 the students with whom the paraprofessional works; 84.5 (2) annual training opportunities are available to enable 84.6 the paraprofessional to continue to further develop the 84.7 knowledge and skills that are specific to the students with whom 84.8 the paraprofessional works, including understanding 84.9 disabilities, following lesson plans, and implementing follow-up 84.10 instructional procedures and activities; and 84.11 (3) a districtwide process obligates each paraprofessional 84.12 to work under the ongoing direction of a licensed teacher and, 84.13 where appropriate and possible, the supervision of a school 84.14 nurse. 84.15 Sec. 21. Minnesota Statutes 1998, section 125A.09, 84.16 subdivision 1, is amended to read: 84.17 Subdivision 1. [DISTRICT OBLIGATION.] As defined in this 84.18 section,but not to exceed the extent required by federal law as84.19of July 1, 1999,every district must use the following 84.20 procedures for decisions involving identification, assessment, 84.21 and educational placement of children with a disability. 84.22 Sec. 22. Minnesota Statutes 1998, section 125A.09, 84.23 subdivision 4, is amended to read: 84.24 Subd. 4. [DISPUTE RESOLUTION.] Parents and guardians must 84.25 have an opportunity to meet with appropriate district staff in 84.26 at least one conciliation conference, mediation, or other method 84.27 of alternative dispute resolution that the parties agree to, if 84.28 they object to any proposal of which they are notified under 84.29 subdivision 1. The state intends to encourage parties to 84.30 resolve disputes through mediation or other form of alternative 84.31 dispute resolution. A school district and a parent or guardian 84.32 must participate in mediation using mediation services 84.33 acceptable to both parties, unless a party objects to the 84.34 mediation. Mediation shall remain available to the parties 84.35 until a party objects to the mediation, or the mediator 84.36 determines that further efforts to mediate a dispute are not 85.1 warranted. All mediation is subject to the confidentiality 85.2 requirements under rule 114.08 of the general rules of practice 85.3 for the district courts. Alternative dispute resolution must 85.4 not be used to deny or delay a parent or guardian's right to a 85.5 due process hearing. If the parent or guardian refuses efforts 85.6 by the district to conciliate the dispute with the district, the 85.7 requirement of an opportunity for conciliation or other 85.8 alternative dispute resolution must be deemed to be satisfied. 85.9 Notwithstanding other law, in any proceeding following a 85.10 conciliation conference, the district must not offer a 85.11 conciliation conference memorandum into evidence, except for any 85.12 portions that describe the district's final proposed offer of 85.13 service. Otherwise, with respect to forms of dispute 85.14 resolution, mediation, or conciliation, Minnesota Rule of 85.15 Evidence 408 applies.The department may reimburse the85.16districts or directly pay the costs of lay advocates, not to85.17exceed $150 per dispute, used in conjunction with alternative85.18dispute resolution.85.19 Sec. 23. Minnesota Statutes 1998, section 125A.09, 85.20 subdivision 6, is amended to read: 85.21 Subd. 6. [IMPARTIAL DUE PROCESS HEARING.] Parents, 85.22 guardians, and the district must have an opportunity to obtain 85.23 an impartial due process hearing initiated and conducted by and 85.24 in the district responsible for assuring that an appropriate 85.25 program is provided in accordance with state board rules, if the 85.26 parent or guardian continues to object to: 85.27 (1) a proposed formal educational assessment or proposed 85.28 denial of a formal educational assessment of their child; 85.29 (2) the proposed placement of their child in, or transfer 85.30 of their child to a special education program; 85.31 (3) the proposed denial of placement of their child in a 85.32 special education program or the transfer of their child from a 85.33 special education program; 85.34 (4) the proposed provision or addition of special education 85.35 services for their child; or 85.36 (5) the proposed denial or removal of special education 86.1 services for their child. 86.2 A hearing officer may limit an impartial due process 86.3 hearing to an amount of time sufficient for each party to 86.4 present its case. The party requesting the hearing shall plead 86.5 with specificity as to what issues are in dispute and all issues 86.6 not pleaded with specificity are deemed waived. Parties must 86.7 limit evidence to the issues specifically pleaded. A hearing 86.8 officer, at the officer's discretion, may exclude cumulative 86.9 evidence or may encourage parties to present only essential 86.10 witnesses. 86.11 Within five business days after the request for a hearing, 86.12 or as directed by the hearing officer, the objecting party must 86.13 provide the other party with a brief written statement of 86.14 particulars of the objection, the reasons for the objection, and 86.15 the specific remedies sought. The other party shall provide the 86.16 objecting party with a written response to the statement of 86.17 objections within five business days of receipt of the statement. 86.18 The hearing must take place before an impartial hearing 86.19 officer mutually agreed to by the school board and the parent or 86.20 guardian. Withinfourthree business days of the receipt of the 86.21 request for the hearing, if the parties have not agreed on the 86.22 hearing officer, the board must request the commissioner to 86.23 appoint a hearing officer from a list maintained for that 86.24 purpose. If the parties have not agreed upon a hearing officer, 86.25 and the board has not requested that a hearing officer be 86.26 appointed by the commissioner within four business days after 86.27 the receipt of the request, the commissioner shall appoint a 86.28 hearing officer upon the request of either party. A retired 86.29 judge, retired court referee, or retired federal magistrate 86.30 judge who is otherwise qualified under this section and wishes 86.31 to be a hearing officer may be put on the list. The board must 86.32 include with the request the name of the person requesting the 86.33 hearing, the name of the student, the attorneys involved, if 86.34 any, and the date the hearing request was received. The hearing 86.35 officer must not be a board member or employee of the district 86.36 where the child resides or of the child's district of residence, 87.1 an employee of any other public agency involved in the education 87.2 or care of the child, or any person with a personal or 87.3 professional interest that would conflict with the person's 87.4 objectivity at the hearing. A person who otherwise qualifies as 87.5 a hearing officer is not an employee of the district solely 87.6 because the person is paid by the district to serve as a hearing 87.7 officer. Any party to a hearing, except an expedited hearing 87.8 under federal law, may make and serve upon the opposing party 87.9 and the commissioner a notice to remove a hearing officer 87.10 appointed by the commissioner. The notice shall be served and 87.11 filed within two business days after the party receives notice 87.12 of the appointment of the hearing officer by the commissioner. 87.13 No such notice may be filed by a party against a hearing 87.14 officer who has presided at a motion or any other proceeding of 87.15 which the party had notice. A hearing officer who has presided 87.16 at a motion or other proceeding may not be removed except upon 87.17 an affirmative showing of prejudice on the part of the hearing 87.18 officer. 87.19 After the party has once disqualified a hearing officer as 87.20 a matter of right, that party may disqualify the substitute 87.21 hearing officer only by making an affirmative showing of 87.22 prejudice or bias to the commissioner, or to the chief 87.23 administrative law judge if the hearing officer is an 87.24 administrative law judge. 87.25 Upon the filing of a notice to remove or if a party makes 87.26 an affirmative showing of prejudice against a substitute hearing 87.27 officer, the commissioner shall assign any other hearing officer 87.28 to hear the matter. 87.29 If the hearing officer requests an independent educational 87.30 assessment of a child, the cost of the assessment must be at 87.31 district expense. The proceedings must be recorded and 87.32 preserved, at the expense of the school district, pending 87.33 ultimate disposition of the action. 87.34 Sec. 24. Minnesota Statutes 1998, section 125A.10, is 87.35 amended to read: 87.36 125A.10 [COORDINATING INTERAGENCY SERVICES.] 88.1 If at the time of initial referral for an educational 88.2 assessment, or a reassessment, the district determines that a 88.3 child with disabilities who is age 3 through 21 may be eligible 88.4 for interagency services, the district may request that the 88.5 county of residence provide a representative to the initial 88.6 assessment or reassessment team meeting or the first individual 88.7 education plan team meeting following the assessment or 88.8 reassessment. The district may request to have a county 88.9 representative attend other individual education plan team 88.10 meetings when it is necessary to facilitate coordination between 88.11 district and county provided services. Upon request from a 88.12 district, the resident county shall provide a representative to 88.13 assist the individual education plan team in determining the 88.14 child's eligibility for existing health, mental health, or other 88.15 support services administered or provided by the county. The 88.16 individual education plan team and the county representative 88.17 must develop an interagency plan of care for an eligible child 88.18 and the child's family to coordinate services required under the 88.19 child's individual education plan with county services. The 88.20 interagency plan of care must include appropriate family 88.21 information with the consent of the family, a description of how 88.22 services will be coordinated between the district and county, a 88.23 description of service coordinator responsibilities and 88.24 services, and a description of activities for obtaining 88.25 third-party payment for eligible services, including medical 88.26 assistance payments. Any state, county, or city government 88.27 agency responsible for providing services or resources to 88.28 students with disabilities under this section is subject to the 88.29 same dispute resolution systems as local school districts, and 88.30 all such agencies must comply with corrective action 88.31 requirements that ensue from these systems. 88.32 Sec. 25. Minnesota Statutes 1998, section 125A.15, is 88.33 amended to read: 88.34 125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 88.35 The responsibility for special instruction and services for 88.36 a child with a disability temporarily placed in another district 89.1 for care and treatment shall be determined in the following 89.2 manner: 89.3 (a) The district of residence of a child shall be the 89.4 district in which the child's parent resides, if living, or the 89.5 child's guardian, or the district designated by the commissioner 89.6 if neither parent nor guardian is living within the state. 89.7 (b) When a child is temporarily placed for care and 89.8 treatment in a day program located in another district and the 89.9 child continues to live within the district of residence during 89.10 the care and treatment, the district of residence is responsible 89.11 for providing transportation to and from the care and treatment 89.12 facility and an appropriate educational program for the 89.13 child. Transportation shall only be provided by the district 89.14 during regular operating hours of the district. The district 89.15 may provide the educational program at a school within the 89.16 district of residence, at the child's residence, or in the 89.17 district in which the day treatment center is located by paying 89.18 tuition to that district. 89.19 (c) When a child is temporarily placed in a residential 89.20 program for care and treatment, the nonresident district in 89.21 which the child is placed is responsible for providing an 89.22 appropriate educational program for the child and necessary 89.23 transportation while the child is attending the educational 89.24 program; and must bill the district of the child's residence for 89.25 the actual cost of providing the program, as outlined in section 89.26 125A.11. However, the board, lodging, and treatment costs 89.27 incurred in behalf of a child with a disability placed outside 89.28 of the school district of residence by the commissioner of human 89.29 services or the commissioner of corrections or their agents, for 89.30 reasons other than providing for the child's special educational 89.31 needs must not become the responsibility of either the district 89.32 providing the instruction or the district of the child's 89.33 residence. For the purposes of this section, the state 89.34 correctional facilities operated on a fee-for-service basis are 89.35 considered to be residential programs for care and treatment. 89.36 (d) The district of residence shall pay tuition and other 90.1 program costs, not including transportation costs, to the 90.2 district providing the instruction and services. The district 90.3 of residence may claim general education aid for the child as 90.4 provided by law. Transportation costs must be paid by the 90.5 district responsible for providing the transportation and the 90.6 state must pay transportation aid to that district. 90.7 Sec. 26. [125A.155] [SPECIAL EDUCATION RECIPROCITY; 90.8 COMMISSIONER DUTIES.] 90.9 The commissioner of children, families, and learning must 90.10 develop a special education reciprocity agreement form. The 90.11 reciprocity form must specify the procedures used to calculate 90.12 special education tuition charges for both Minnesota students 90.13 that are served in other states and for out-of-state students 90.14 who are served in Minnesota. The commissioner shall attempt to 90.15 enter into reciprocity agreements with any state that sends 90.16 students to Minnesota and any state that provides services to 90.17 Minnesota students. 90.18 Sec. 27. Minnesota Statutes 1998, section 125A.18, is 90.19 amended to read: 90.20 125A.18 [SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.] 90.21 No resident of a district who is eligible for special 90.22 instruction and services under this section may be denied 90.23 instruction and service on a shared time basis consistent with 90.24 section 126C.19, subdivision 4, because of attending a nonpublic 90.25 school defined in section 123B.41, subdivision 9. If a resident 90.26 pupil with a disability attends a nonpublic school located 90.27 within the district of residence, the district must provide 90.28 necessary transportation for that pupil within the district 90.29 between the nonpublic school and the educational facility where 90.30 special instruction and services are provided on a shared time 90.31 basis. If a resident pupil with a disability attends a 90.32 nonpublic school located in another district and if no agreement 90.33 exists under section 126C.19, subdivision 1 or 2, for providing 90.34 special instruction and services on a shared time basis to that 90.35 pupil by the district of attendance and where the special 90.36 instruction and services are provided within the district of 91.1 residence, the district of residence must provide necessary 91.2 transportation for that pupil between the boundary of the 91.3 district of residence and the educational facility. The 91.4 district of residence may provide necessary transportation for 91.5 that pupil between its boundary and the nonpublic school 91.6 attended, but the nonpublic school must pay the cost of 91.7 transportation provided outside the district boundary. 91.8 Parties serving students on a shared time basis have access 91.9 to due process hearing system described under United States 91.10 Code, title 20, and the complaint system under Code of Federal 91.11 Regulations, title 34, section 300.660-662. In the event it is 91.12 determined under these systems that the nonpublic school or 91.13 staff impeded the public school district's provision of a free 91.14 appropriate education, the commissioner may withhold public 91.15 funds available to the nonpublic school proportionally 91.16 applicable to that student under section 123B.42. 91.17 Sec. 28. Minnesota Statutes 1998, section 125A.21, 91.18 subdivision 2, is amended to read: 91.19 Subd. 2. [THIRD PARTY REIMBURSEMENT.] Beginning July 91.20 1,19992000, districts shall seek reimbursement from insurers 91.21 and similar third parties for the cost of services provided by 91.22 the district whenever the services provided by the district are 91.23 otherwise covered by the child's health coverage. Districts 91.24 shall request, but may not require, the child's family to 91.25 provide information about the child's health coverage when a 91.26 child with a disability begins to receive services from the 91.27 district of a type that may be reimbursable, and shall request, 91.28 but may not require, updated information after that as needed. 91.29 Districts shall request, but may not require, the child's parent 91.30 or legal representative to sign a consent form, permitting the 91.31 school district to apply for and receive reimbursement directly 91.32 from the insurer or other similar third party, to the extent 91.33 permitted by the insurer or other third party and subject to 91.34 their networking credentialing, prior authorization, and 91.35 determination of medical necessity criteria. 91.36 Sec. 29. Minnesota Statutes 1998, section 125A.24, is 92.1 amended to read: 92.2 125A.24 [PARENT ADVISORYCOMMITTEESCOUNCILS.] 92.3Provisions of Minnesota Rules, part 3525.1100, regarding92.4parent advisory committees apply to local boards or cooperative92.5boards carrying out the provisions of this section.In order to 92.6 increase the involvement of parents of children with 92.7 disabilities in district policy-making and decision-making, 92.8 school districts must have a special education advisory council 92.9 that is incorporated into the district's special education 92.10 system plan. 92.11 (1) This advisory council may be established either for 92.12 individual districts or in cooperation with other districts who 92.13 are members of the same special education cooperative. 92.14 (2) A district may set up this council as a subgroup of an 92.15 existing board, council, or committee. 92.16 (3) At least half of the designated council members must be 92.17 parents of students with a disability. The number of members, 92.18 frequency of meetings, and operational procedures are to be 92.19 locally determined. 92.20 Sec. 30. Minnesota Statutes 1998, section 125A.30, is 92.21 amended to read: 92.22 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 92.23 (a) A school district, group of districts, or special 92.24 education cooperative, in cooperation with the health and human 92.25 service agencies located in the county or counties in which the 92.26 district or cooperative is located, must establish an 92.27 interagency early intervention committee for children with 92.28 disabilities under age five and their families under this 92.29 section, and for children with disabilities ages three to 22 92.30 consistent with the requirements under sections 125A.023 and 92.31 125A.027. Committees must include representatives of local and 92.32 regional health, education, and county human service agencies, 92.33 county boards, school boards, early childhood family education 92.34 programs, parents of young children with disabilities under age 92.35 12, current service providers, and may also include 92.36 representatives from other private or public agencies and school 93.1 nurses. The committee must elect a chair from among its members 93.2 and must meet at least quarterly. 93.3 (b) The committee must develop and implement interagency 93.4 policies and procedures concerning the following ongoing duties: 93.5 (1) develop public awareness systems designed to inform 93.6 potential recipient families of available programs and services; 93.7 (2) implement interagency child find systems designed to 93.8 actively seek out, identify, and refer infants and young 93.9 children with, or at risk of, disabilities and their families; 93.10 (3) establish and evaluate the identification, referral, 93.11 child and family assessment systems, procedural safeguard 93.12 process, and community learning systems to recommend, where 93.13 necessary, alterations and improvements; 93.14 (4) assure the development of individualized family service 93.15 plans for all eligible infants and toddlers with disabilities 93.16 from birth through age two, and their families, and individual 93.17 education plans and individual service plans when necessary to 93.18 appropriately serve children with disabilities, age three and 93.19 older, and their families and recommend assignment of financial 93.20 responsibilities to the appropriate agencies; 93.21 (5) encourage agencies to develop individual family service 93.22 plans for children with disabilities, age three and older; 93.23 (6) implement a process for assuring that services involve 93.24 cooperating agencies at all steps leading to individualized 93.25 programs; 93.26 (7) facilitate the development of a transitional plan if a 93.27 service provider is not recommended to continue to provide 93.28 services; 93.29 (8) identify the current services and funding being 93.30 provided within the community for children with disabilities 93.31 under age five and their families; 93.32 (9) develop a plan for the allocation and expenditure of 93.33 additional state and federal early intervention funds under 93.34 United States Code, title 20, section 1471 et seq. (Part H, 93.35 Public Law Number 102-119) and United States Code, title 20, 93.36 section 631, et seq. (Chapter I, Public Law Number 89-313); and 94.1 (10) develop a policy that is consistent with section 94.2 13.05, subdivision 9, and federal law to enable a member of an 94.3 interagency early intervention committee to allow another member 94.4 access to data classified as not public. 94.5 (c) The local committee shall also: 94.6 (1) participate in needs assessments and program planning 94.7 activities conducted by local social service, health and 94.8 education agencies for young children with disabilities and 94.9 their families; 94.10 (2) review and comment on the early intervention section of 94.11 the total special education system for the district, the county 94.12 social service plan, the section or sections of the community 94.13 health services plan that address needs of and service 94.14 activities targeted to children with special health care needs, 94.15 and the section of the maternal and child health special project 94.16 grants that address needs of and service activities targeted to 94.17 children with chronic illness and disabilities; and. 94.18(3) prepare a yearly summary on the progress of the94.19community in serving young children with disabilities, and their94.20families, including the expenditure of funds.94.21(d) The summary must be organized following a format94.22prescribed by the commissioner of the state lead agency and must94.23be submitted to each of the local agencies and to the state94.24interagency coordinating council by October 1 of each year.94.25The departments of children, families, and learning,94.26health, and human services must provide assistance to the local94.27agencies in developing cooperative plans for providing services.94.28 Sec. 31. Minnesota Statutes 1998, section 125A.33, is 94.29 amended to read: 94.30 125A.33 [SERVICE COORDINATION.] 94.31 (a) The team developing the IFSP under section 125A.32 must 94.32 select a service coordinator to carry out service coordination 94.33 activities on an interagency basis. Service coordination must 94.34 actively promote a family's capacity and competency to identify, 94.35 obtain, coordinate, monitor, and evaluate resources and services 94.36 to meet the family's needs. Service coordination activities 95.1 include: 95.2 (1) coordinating the performance of evaluations and 95.3 assessments; 95.4 (2) facilitating and participating in the development, 95.5 review, and evaluation of individualized family service plans; 95.6 (3) assisting families in identifying available service 95.7 providers; 95.8 (4) coordinating and monitoring the delivery of available 95.9 services; 95.10 (5) informing families of the availability of advocacy 95.11 services; 95.12 (6) coordinating with medical, health, and other service 95.13 providers; 95.14 (7) facilitating the development of a transition plan at 95.15 leastsix months90 days before the time the child is no longer 95.16 eligible for early intervention services, if appropriate; 95.17 (8) managing the early intervention record and submitting 95.18 additional information to the local primary agency at the time 95.19 of periodic review and annual evaluations; and 95.20 (9) notifying a local primary agency when disputes between 95.21 agencies impact service delivery required by an IFSP. 95.22 (b) A service coordinator must be knowledgeable about 95.23 children and families receiving services under this section, 95.24 requirements of state and federal law, and services available in 95.25 the interagency early childhood intervention system. 95.26 Sec. 32. Minnesota Statutes 1998, section 125A.44, is 95.27 amended to read: 95.28 125A.44 [COMPLAINT PROCEDURE.] 95.29 (a) An individual or organization may file a written signed 95.30 complaint with the commissioner of the state lead agency 95.31 alleging that one or more requirements of the Code of Federal 95.32 Regulations, title 34, part 303, is not being met. The 95.33 complaint must include: 95.34 (1) a statement that the state has violated the Individuals 95.35 with Disabilities Education Act, United States Code, title 20, 95.36 section 1471 et seq. (Part H, Public Law Number 102-119) or Code 96.1 of Federal Regulations, title 34, section 303; and 96.2 (2) the facts on which the complaint is based. 96.3 (b) The commissioner of the state lead agency shall receive 96.4 and coordinate with other state agencies the review and 96.5 resolution of a complaint within 60 calendar days according to 96.6 the state interagency agreement required under section 125A.48. 96.7 The development and disposition of corrective action orders for 96.8 nonschool agencies shall be determined by the State Agency 96.9 Committee (SAC). Failure to comply with corrective orders may 96.10 result in fiscal actions or other measures. 96.11 Sec. 33. Minnesota Statutes 1998, section 125A.50, 96.12 subdivision 2, is amended to read: 96.13 Subd. 2. [APPLICATION CONTENTS.] The application must set 96.14 forth: 96.15 (1) instructional services available to eligible pupils 96.16 under section124D.67124D.66, subdivision32, and pupils with 96.17 a disability under section 125A.02; 96.18 (2) criteria to select pupils for the program and the 96.19 assessment procedures to determine eligibility; 96.20 (3) involvement in the program of parents of pupils in the 96.21 program, parent advocates, and community special education 96.22 advocates; 96.23 (4) accounting procedures to document that federal special 96.24 education money is used to supplement or increase the level of 96.25 special education instruction and related services provided with 96.26 state and local revenue, but in no case to supplant the state 96.27 and local revenue, and that districts are expending at least the 96.28 amount for special education instruction and related services 96.29 required by federal law; 96.30 (5) the role of regular and special education teachers in 96.31 planning and implementing the program; and 96.32 (6) other information requested by the commissioner. 96.33 Sec. 34. Minnesota Statutes 1998, section 125A.50, 96.34 subdivision 5, is amended to read: 96.35 Subd. 5. [ANNUAL REPORT.] Each year the district must 96.36 submit to the commissioner a report containing the information 97.1 described in subdivision 3and section 124D.67, subdivision 7. 97.2 Sec. 35. Minnesota Statutes 1998, section 125A.51, is 97.3 amended to read: 97.4 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 97.5 EDUCATION AND TRANSPORTATION.] 97.6 The responsibility for providing instruction and 97.7 transportation for a pupil without a disability who has a 97.8 short-term or temporary physical or emotional illness or 97.9 disability, as determined by the standards of the state board, 97.10 and who is temporarily placed for care and treatment for that 97.11 illness or disability, must be determined as provided in this 97.12 section. 97.13 (a) The school district of residence of the pupil is the 97.14 district in which the pupil's parent or guardian residesor the97.15district designated by the commissioner if neither parent nor97.16guardian is living within the state and tuition has been denied. 97.17 (b) When parental rights have been terminated by court 97.18 order, the legal residence of a child placed in a residential or 97.19 foster facility for care and treatment is the district in which 97.20 the child resides when parental rights have been terminated. 97.21(b)(c) Before the placement of a pupil for care and 97.22 treatment, the district of residence must be notified and 97.23 provided an opportunity to participate in the placement 97.24 decision. When an immediate emergency placement is necessary 97.25 and time does not permit resident district participation in the 97.26 placement decision, the district in which the pupil is 97.27 temporarily placed, if different from the district of residence, 97.28 must notify the district of residence of the emergency placement 97.29 within 15 days of the placement. 97.30(c)(d) When a pupil without a disability is temporarily 97.31 placed for care and treatment in a day program and the pupil 97.32 continues to live within the district of residence during the 97.33 care and treatment, the district of residence must provide 97.34 instruction and necessary transportation to and from the 97.35 treatment facility for the pupil. Transportation shall only be 97.36 provided by the district during regular operating hours of the 98.1 district. The district may provide the instruction at a school 98.2 within the district of residence, at the pupil's residence, or 98.3 in the case of a placement outside of the resident district, in 98.4 the district in which the day treatment program is located by 98.5 paying tuition to that district. The district of placement may 98.6 contract with a facility to provide instruction by teachers 98.7 licensed by the state board of teaching. 98.8(d)(e) When a pupil without a disability is temporarily 98.9 placed in a residential program for care and treatment, the 98.10 district in which the pupil is placed must provide instruction 98.11 for the pupil and necessary transportation while the pupil is 98.12 receiving instruction, and in the case of a placement outside of 98.13 the district of residence, the nonresident district must bill 98.14 the district of residence for the actual cost of providing the 98.15 instruction for the regular school year and for summer school, 98.16 excluding transportation costs. When a pupil without a 98.17 disability is temporarily placed in a residential program 98.18 outside the district of residence, the administrator of the 98.19 court placing the pupil must send timely written notice of the 98.20 placement to the district of residence. The district of 98.21 placement may contract with a residential facility to provide 98.22 instruction by teachers licensed by the state board of teaching. 98.23 For purposes of this section, the state correctional facilities 98.24 operated on a fee-for-service basis are considered to be 98.25 residential programs for care and treatment. 98.26(e)(f) The district of residence must include the pupil in 98.27 its residence count of pupil units and pay tuition as provided 98.28 in section 123A.488 to the district providing the instruction. 98.29 Transportation costs must be paid by the district providing the 98.30 transportation and the state must pay transportation aid to that 98.31 district. For purposes of computing state transportation aid, 98.32 pupils governed by this subdivision must be included in the 98.33 disabled transportation category. 98.34 Sec. 36. [125A.515] [PLACEMENT OF CHILDREN WITHOUT 98.35 DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 98.36 The commissioner shall approve education programs in care 99.1 and treatment facilities for placement of children without 99.2 disabilities, including detention centers, before being licensed 99.3 by the department of human services or the department of 99.4 corrections. 99.5 (Effective Date: Section 36 (125A.515) is effective July 99.6 1, 2000.) 99.7 Sec. 37. Minnesota Statutes 1998, section 125A.52, 99.8 subdivision 1, is amended to read: 99.9 Subdivision 1. [EDUCATIONAL SCREENING.] Secure and 99.10 nonsecure residential treatment facilities licensed by the 99.11 department of human services or the department of corrections 99.12 must screen each juvenile who is held in a facility for at least 99.13 72 hours, excluding weekends or holidays, using an educational 99.14 screening tool identified by the department, unless the facility 99.15 determines that the juvenile has a current individual education 99.16 plan and obtains a copy of it.The department must develop or99.17identify an education screening tool for use in residential99.18facilities. The tool must include a life skills development99.19component.99.20 Sec. 38. Minnesota Statutes 1998, section 125A.62, is 99.21 amended to read: 99.22 125A.62 [DUTIES OFSTATETHE BOARD OFEDUCATIONTHE 99.23 MINNESOTA STATE ACADEMIES.] 99.24 Subdivision 1. [GOVERNANCE.] The board of theFaribault99.25academyMinnesota state academies shall govern the state 99.26 academies for the deaf and the state academy for the blind. The 99.27 board must promote academic standards based on high expectation 99.28 and an assessment system to measure academic performance toward 99.29 the achievement of those standards. The board must focus on the 99.30 academies' needs as a whole and not prefer one school over the 99.31 other. The board of theFaribaultMinnesota state academies 99.32 shall consist ofsevennine persons. The members of the board 99.33 shall be appointed by the governor with the advice and consent 99.34 of the senate.Three membersOne member must be from the 99.35 seven-county metropolitan area,three membersone member must be 99.36 from greater Minnesota, and one member may be appointed at-large. 100.1 The board must be composed of: 100.2 (1) one present or former superintendent of an independent 100.3 school district; 100.4 (2) one present or former special education director; 100.5 (3) the commissioner of children, families, and learning or 100.6 the commissioner's designee; 100.7 (4) one member of the blind community; 100.8 (5) one member of the deaf community;and100.9 (6) two members of the general public with business, 100.10 administrative, or financial expertise; 100.11 (7) one nonvoting, unpaid ex officio member appointed by 100.12 the site council for the state academy for the deaf; and 100.13 (8) one nonvoting, unpaid ex officio member appointed by 100.14 the site council for the state academy for the blind. 100.15 Subd. 2. [TERMS; COMPENSATION; AND OTHER.] The membership 100.16 terms, compensation, removal of members, and filling of 100.17 vacancies shall be as provided for in section 15.0575. 100.18 Notwithstanding section 15.0575, a member may serve not more 100.19 than two consecutive four-year terms. 100.20 Subd. 3. [MEETINGS.] All meetings of the board shall be as 100.21 provided in section 471.705 and must be held in Faribault. 100.22 Subd. 4. [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 100.23 must do what is necessary to provide the most beneficial and 100.24 least restrictive program of education for each pupil at the 100.25 academies who is handicapped by visual disability or deafness. 100.26 Subd. 5. [PLANNING, EVALUATION, AND REPORTING.] To the 100.27 extent required in school districts, the board must establish a 100.28 process for the academies to include parent and community input 100.29 in the planning, evaluation, and reporting of curriculum and 100.30 pupil achievement. 100.31 Subd. 6. [SITE COUNCILS.] The boardmaymust establish, 100.32 and appoint members to, a site council at each academy. The 100.33 site councils shall exercise power and authority granted by the 100.34 board. The board must appoint to each site council the 100.35 exclusive representative's employee designee from each exclusive 100.36 representative at the academies. The site councils may make a 101.1 recommendation to the governor regarding board appointments no 101.2 more than 30 days after receiving the list of applicants from 101.3 the governor. 101.4 Subd. 7. [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 101.5 the trustee of the academies' property. Securities and money, 101.6 including income from the property, must be deposited in the 101.7 state treasury according to section 16A.275. The deposits are 101.8 subject to the order of the board. 101.9 Subd. 8. [GRANTS.] The board, through the chief 101.10 administrators of the academies, may apply for all competitive 101.11 grants administered by agencies of the state and other 101.12 government or nongovernment sources. Application may not be 101.13 made for grants over which the board has discretion. 101.14 (Effective date: Section 38 (125A.62) is effective 101.15 December 31, 1999.) 101.16 Sec. 39. Minnesota Statutes 1998, section 125A.64, is 101.17 amended to read: 101.18 125A.64 [POWERS OF BOARD OF THEFARIBAULTMINNESOTA STATE 101.19 ACADEMIES.] 101.20 Subdivision 1. [PERSONNEL.] The board of theFaribault101.21 Minnesota state academies may employ central administrative 101.22 staff members and other personnel necessary to provide and 101.23 support programs and services at each academy. 101.24 Subd. 2. [GET HELP FROM DEPARTMENT.] The board of the 101.25FaribaultMinnesota state academies may require the department 101.26 of children, families, and learning to provide program 101.27 leadership, program monitoring, and technical assistance at the 101.28 academies. 101.29 Subd. 3. [UNCLASSIFIED POSITIONS.] The board of the 101.30FaribaultMinnesota state academies may place any position other 101.31 than residential academies administrator in the unclassified 101.32 service. The position must meet the criteria in section 43A.08, 101.33 subdivision 1a. 101.34 Subd. 4. [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 101.35 The board of theFaribaultMinnesota state academies may enter 101.36 into agreements with public or private agencies or institutions 102.1 to provide residential and building maintenance services. The 102.2 board of theFaribaultMinnesota state academies must first 102.3 decide that contracting for the services is more efficient and 102.4 less expensive than not contracting for them. 102.5 Subd. 5. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 102.6 The board of theFaribaultMinnesota state academies may enter 102.7 into agreements with teacher preparation institutions for 102.8 student teachers to get practical experience at the academies. 102.9 A licensed teacher must provide appropriate supervision of each 102.10 student teacher. 102.11 (b) The board of theFaribaultMinnesota state academies 102.12 may enter into agreements with accredited higher education 102.13 institutions for certain student trainees to get practical 102.14 experience at the academies. The students must be preparing 102.15 themselves in a professional field that provides special 102.16 services to children with a disability in school programs. To 102.17 be a student trainee in a field, a person must have completed at 102.18 least two years of an approved program in the field. A person 102.19 who is licensed or registered in the field must provide 102.20 appropriate supervision of each student trainee. 102.21 (Effective date: Section 39 (125A.64) is effective 102.22 December 31, 1999.) 102.23 Sec. 40. Minnesota Statutes 1998, section 125A.65, 102.24 subdivision 3, is amended to read: 102.25 Subd. 3. [EDUCATIONAL PROGRAM; TUITION.] When it is 102.26 determined pursuant to section 125A.69, subdivision 1 or 2, that 102.27 the child is entitled to attend either school, the board of the 102.28FaribaultMinnesota state academies must provide the appropriate 102.29 educational program for the child. The board of theFaribault102.30 Minnesota state academies must make a tuition charge to the 102.31 child's district of residence for the cost of providing the 102.32 program. The amount of tuition charged must not exceed the 102.33 basic revenue of the district for that child, for the amount of 102.34 time the child is in the program. For purposes of this 102.35 subdivision, "basic revenue" has the meaning given it in section 102.36 126C.10, subdivision 2. The district of the child's residence 103.1 must pay the tuition and may claim general education aid for the 103.2 child. Tuition received by the board of theFaribaultMinnesota 103.3 state academies, except for tuition received under subdivision 103.4 4, must be deposited in the state treasury as provided in 103.5 subdivision 8. 103.6 (Effective date: Section 40 (125A.65, subdivision 3) is 103.7 effective December 31, 1999.) 103.8 Sec. 41. Minnesota Statutes 1998, section 125A.65, 103.9 subdivision 5, is amended to read: 103.10 Subd. 5. [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 103.11 When it is determined that the child can benefit from public 103.12 school enrollment but that the child should also remain in 103.13 attendance at the applicable school, the district where the 103.14 institution is located must provide an appropriate educational 103.15 program for the child and must make a tuition charge to the 103.16 board of theFaribaultMinnesota state academies for the actual 103.17 cost of providing the program, less any amount of aid received 103.18 pursuant to section 125A.75. The board of theFaribault103.19 Minnesota state academies must pay the tuition and other program 103.20 costs including the unreimbursed transportation costs. Aids for 103.21 children with a disability must be paid to the district 103.22 providing the special instruction and services. Special 103.23 transportation must be provided by the district providing the 103.24 educational program and the state must reimburse that district 103.25 within the limits provided by law. 103.26 (Effective date: Section 41 (125A.65, subdivision 5) is 103.27 effective December 31, 1999.) 103.28 Sec. 42. Minnesota Statutes 1998, section 125A.65, 103.29 subdivision 6, is amended to read: 103.30 Subd. 6. [TUITION REDUCTION.] Notwithstanding the 103.31 provisions of subdivisions 3 and 5, the board of theFaribault103.32 Minnesota state academies may agree to make a tuition charge for 103.33 less than the amount specified in subdivision 3 for pupils 103.34 attending the applicable school who are residents of the 103.35 district where the institution is located and who do not board 103.36 at the institution, if that district agrees to make a tuition 104.1 charge to the board of theFaribaultMinnesota state academies 104.2 for less than the amount specified in subdivision 5 for 104.3 providing appropriate educational programs to pupils attending 104.4 the applicable school. 104.5 (Effective date: Section 42 (125A.65, subdivision 6) is 104.6 effective December 31, 1999.) 104.7 Sec. 43. Minnesota Statutes 1998, section 125A.65, 104.8 subdivision 7, is amended to read: 104.9 Subd. 7. [STAFF ALLOCATION.] Notwithstanding the 104.10 provisions of subdivisions 3 and 5, the board of theFaribault104.11 Minnesota state academies may agree to supply staff from the 104.12 Minnesota state academy for the deaf and the Minnesota state 104.13 academy for the blind to participate in the programs provided by 104.14 the district where the institutions are located when the 104.15 programs are provided to students in attendance at the state 104.16 schools. 104.17 (Effective date: Section 43 (125A.65, subdivision 7) is 104.18 effective December 31, 1999.) 104.19 Sec. 44. Minnesota Statutes 1998, section 125A.65, 104.20 subdivision 8, is amended to read: 104.21 Subd. 8. [STUDENT COUNT; TUITION.] On May 1 of each year, 104.22 the board of theFaribaultMinnesota state academies shall count 104.23 the actual number of Minnesota resident kindergarten and 104.24 elementary students and the actual number of Minnesota resident 104.25 secondary students enrolled and receiving education services at 104.26 the Minnesota state academy for the deaf and the Minnesota state 104.27 academy for the blind. The board of theFaribaultMinnesota 104.28 state academies shall deposit in the state treasury an amount 104.29 equal to all tuition received less: 104.30 (1) the total number of students on May 1 less 175, times 104.31 the ratio of the number of kindergarten and elementary students 104.32 to the total number of students on May 1, times the general 104.33 education formula allowance; plus 104.34 (2) the total number of students on May 1 less 175, times 104.35 the ratio of the number of secondary students on May 1 to the 104.36 total number of students on May 1, times 1.3, times the general 105.1 education formula allowance. 105.2 (Effective date: Section 44 (125A.65, subdivision 8) is 105.3 effective December 31, 1999.) 105.4 Sec. 45. Minnesota Statutes 1998, section 125A.65, 105.5 subdivision 10, is amended to read: 105.6 Subd. 10. [ANNUAL APPROPRIATION.] There is annually 105.7 appropriated to the department for theFaribaultMinnesota state 105.8 academies the tuition amounts received and credited to the 105.9 general operation account of the academies under this section. 105.10 A balance in an appropriation under this paragraph does not 105.11 cancel but is available in successive fiscal years. 105.12 (Effective date: Section 45 (125A.65, subdivision 10) is 105.13 effective December 31, 1999.) 105.14 Sec. 46. Minnesota Statutes 1998, section 125A.68, 105.15 subdivision 1, is amended to read: 105.16 Subdivision 1. [SUBJECTS.] The board of theFaribault105.17 Minnesota state academies must establish procedures for: 105.18 (1) admission, including short-term admission, to the 105.19 academies; 105.20 (2) discharge from the academies; 105.21 (3) decisions on a pupil's program at the academies; and 105.22 (4) evaluation of a pupil's progress at the academies. 105.23 (Effective date: Section 46 (125A.68, subdivision 1) is 105.24 effective December 31, 1999.) 105.25 Sec. 47. Minnesota Statutes 1998, section 125A.69, 105.26 subdivision 1, is amended to read: 105.27 Subdivision 1. [TWO KINDS.] There are two kinds of 105.28 admission to the Minnesota state academies. 105.29 (a) A pupil who is deaf, hard of hearing, or blind-deaf, 105.30 may be admitted to the academy for the deaf. A pupil who is 105.31 blind or visually impaired, blind-deaf, or multiply handicapped 105.32 may be admitted to the academy for the blind. For a pupil to be 105.33 admitted, two decisions must be made under sections 125A.03 to 105.34 125A.24 and 125A.65. 105.35 (1) It must be decided by the individual education planning 105.36 team that education in regular or special education classes in 106.1 the pupil's district of residence cannot be achieved 106.2 satisfactorily because of the nature and severity of the 106.3 deafness or blindness or visual impairment respectively. 106.4 (2) It must be decided by the individual education planning 106.5 team that the academy provides the most appropriate placement 106.6 within the least restrictive alternative for the pupil. 106.7 (b) A deaf or hard of hearing child or a visually impaired 106.8 pupil may be admitted to get socialization skills or on a 106.9 short-term basis for skills development. 106.10 (Effective date: Section 47 (125A.69, subdivision 1) is 106.11 effective December 1, 1999.) 106.12 Sec. 48. Minnesota Statutes 1998, section 125A.69, 106.13 subdivision 3, is amended to read: 106.14 Subd. 3. [OUT-OF-STATE ADMISSIONS.] An applicant from 106.15 another state who can benefit from attending either academy may 106.16 be admitted to the academy if the admission does not prevent an 106.17 eligible Minnesota resident from being admitted. Thestate106.18board of educationboard of the Minnesota state academies must 106.19 obtain reimbursement from the other state for the costs of the 106.20 out-of-state admission. The state board may enter into an 106.21 agreement with the appropriate authority in the other state for 106.22 the reimbursement. Money received from another state must be 106.23 deposited in the general fund and credited to the general 106.24 operating account of the academies. The money is appropriated 106.25 to the academies. 106.26 (Effective date: Section 48 (125A.69, subdivision 3) is 106.27 effective December 31, 1999.) 106.28 Sec. 49. Minnesota Statutes 1998, section 125A.70, 106.29 subdivision 2, is amended to read: 106.30 Subd. 2. [LOCAL SOCIAL SERVICES AGENCY.] If the person 106.31 liable for support of a pupil cannot support the pupil, the 106.32 local social services agency of the county of the pupil's 106.33 residence must do so. The commissioner of children, families, 106.34 and learning must decide how much the local social services 106.35 agency must pay. The board of theFaribaultMinnesota state 106.36 academies must adopt rules that tell how the commissioner is to 107.1 fix the amount. The local social services agency must make the 107.2 payment to the superintendent of the school district of 107.3 residence. 107.4 (Effective date: Section 49 (125A.70, subdivision 2) is 107.5 effective December 31, 1999.) 107.6 Sec. 50. Minnesota Statutes 1998, section 125A.71, 107.7 subdivision 3, is amended to read: 107.8 Subd. 3. [CONTRACTS; FEES; APPROPRIATION.] Thestateboard 107.9 of the Minnesota state academies may enter into agreements for 107.10 the academies to provide respite care and supplemental 107.11 educational instruction and services including assessments and 107.12 counseling. The agreements may be made with public or private 107.13 agencies or institutions, school districts, service 107.14 cooperatives, or counties. The board may authorize the 107.15 academies to provide conferences, seminars, nondistrict and 107.16 district requested technical assistance, and production of 107.17 instructionally related materials. 107.18 (Effective date: Section 50 (125A.71, subdivision 3) is 107.19 effective December 31, 1999.) 107.20 Sec. 51. Minnesota Statutes 1998, section 125A.72, is 107.21 amended to read: 107.22 125A.72 [STUDENT ACTIVITIES ACCOUNT.] 107.23 Subdivision 1. [STUDENT ACTIVITIES; RECEIPTS; 107.24 APPROPRIATION.] All receipts of any kind generated to operate 107.25 student activities, including student fees, donations and 107.26 contributions, and gate receipts must be deposited in the state 107.27 treasury. The receipts are appropriated annually to the 107.28residentialMinnesota state academies for student activities 107.29 purposes. They are not subject to budgetary control by the 107.30 commissioner of finance. 107.31 Subd. 2. [TO STUDENT ACTIVITIES ACCOUNT.] The money 107.32 appropriated in subdivision 1 to theresidentialMinnesota state 107.33 academies for student activities must be credited to aFaribault107.34 Minnesota state academies' student activities account and may be 107.35 spent only forFaribaultMinnesota state academies' student 107.36 activities purposes. 108.1 Subd. 3. [CARRYOVER.] An unexpended balance in the 108.2FaribaultMinnesota state academies' student activities account 108.3 may be carried over from the first fiscal year of the biennium 108.4 into the second fiscal year of the biennium and from one 108.5 biennium to the next. The amount carried over must not be taken 108.6 into account in determining state appropriations and must not be 108.7 deducted from a later appropriation. 108.8 Subd. 4. [MONEY FROM CERTAIN STUDENT ACTIVITIES 108.9 SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 108.10 aFaribaultMinnesota state academies' student activity that 108.11 involves: 108.12 (1) state employees who are receiving compensation for 108.13 their involvement with the activity; 108.14 (2) the use of state facilities; or 108.15 (3) money raised for student activities in the name of the 108.16residentialMinnesota state academies 108.17 is specifically included among the kinds of receipts that are 108.18 described in subdivision 1. 108.19 (Effective date: Section 51 (125A.72) is effective 108.20 December 31, 1999.) 108.21 Sec. 52. Minnesota Statutes 1998, section 125A.73, is 108.22 amended to read: 108.23 125A.73 [DUTIES OF STATE DEPARTMENTS.] 108.24 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 108.25 LEARNING.] The department of children, families, and learning 108.26 must assist the board of theFaribaultMinnesota state academies 108.27 in preparing reports on the academies. 108.28 Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] The 108.29 department of employee relations, in cooperation with the board 108.30 of theFaribaultMinnesota state academies, must develop a 108.31 statement of necessary qualifications and skills for all staff 108.32 members of the academies. 108.33 (Effective date: Section 52 (125A.73) is effective 108.34 December 31, 1999.) 108.35 Sec. 53. Minnesota Statutes 1998, section 125A.744, 108.36 subdivision 3, is amended to read: 109.1 Subd. 3. [IMPLEMENTATION.] Consistent with section 109.2 256B.0625, subdivision 26, school districts may enroll as 109.3 medical assistance providers or subcontractors and bill the 109.4 department of human services under the medical assistance fee 109.5 for service claims processing system for special education 109.6 services which are covered services under chapter 256B, which 109.7 are provided in the school setting for a medical assistance 109.8 recipient, and for whom the district has secured informed 109.9 consent consistent with section 13.05, subdivision 4, paragraph 109.10 (d), and section 256B.77, subdivision 2, paragraph (p), to bill 109.11 for each type of covered service. School districts shall be 109.12 reimbursed by the commissioner of human services for the federal 109.13 share of individual education plan health-related services that 109.14 qualify for reimbursement by medical assistance. A school 109.15 district is not eligible to enroll as a home care provider or a 109.16 personal care provider organization for purposes of billing home 109.17 care services under section 256B.0627 until the commissioner of 109.18 human services issues a bulletin instructing county public 109.19 health nurses on how to assess for the needs of eligible 109.20 recipients during school hours. To use private duty nursing 109.21 services or personal care services at school, the recipient or 109.22 responsible party must provide written authorization in the care 109.23 plan identifying the chosen provider and the daily amount of 109.24 services to be used at school.Medical assistance services for109.25those enrolled in a prepaid health plan shall remain the109.26responsibility of the contracted health plan subject to their109.27network, credentialing, prior authorization, and determination109.28of medical necessity criteria. The commissioner of human109.29services shall adjust payments to health plans to reflect109.30increased costs incurred by health plans due to increased109.31payments made to school districts or new payment or delivery109.32arrangements developed by health plans in cooperation with109.33school districts.109.34 (Effective Date: Section 53 (125A.744, subdivision 3) is 109.35 effective July 1, 2000.) 109.36 Sec. 54. Minnesota Statutes 1998, section 125A.75, 110.1 subdivision 3, is amended to read: 110.2 Subd. 3. [FULL STATE PAYMENT.] The state must pay each 110.3 district the actual cost incurred in providing instruction and 110.4 services for a childwith a disabilitywhose district of 110.5 residence has been determined by section 125A.17 or 125A.51, 110.6 paragraph (b), and who is temporarily placed in a state 110.7 institutionor, a licensed residential facility, or foster 110.8 facility for care and treatment.This section does not apply to110.9a child placed in a foster home or a foster group home.The 110.10 regular education program at the facility must be an approved 110.11 program according to section 125A.515. 110.12 Upon following the procedure specified by the commissioner, 110.13 the district may bill the state the actual cost incurred in 110.14 providing the services including transportation costs and a 110.15 proportionate amount of capital expenditures and debt service, 110.16 minus the amount of the basic revenue, as defined in section 110.17 126C.10, subdivision 2, of the district for the child and the 110.18 special education aid, transportation aid, and any other aid 110.19 earned on behalf of the child. The limit in subdivision 2 110.20 applies to aid paid pursuant to this subdivision. 110.21 To the extent possible, the commissioner shall obtain 110.22 reimbursement from another state for the cost of serving any 110.23 child whose parent or guardian resides in that state. The 110.24 commissioner may contract with the appropriate authorities of 110.25 other states to effect reimbursement. All money received from 110.26 other states must be paid to the state treasury and placed in 110.27 the general fund. 110.28 (Effective Date: Section 54 (125A.75, subdivision 3) is 110.29 effective July 1, 2000.) 110.30 Sec. 55. Minnesota Statutes 1998, section 125A.75, 110.31 subdivision 8, is amended to read: 110.32 Subd. 8. [LITIGATION AND HEARING COSTS.] (a) For fiscal 110.33 year 1999 and thereafter, the commissioner of children, 110.34 families, and learning, or the commissioner's designee, shall 110.35 use state funds to pay school districts for the administrative 110.36 costs of a due process hearing incurred under section 125A.09, 111.1 subdivisions 6, 10, and 11, including hearing officer fees, 111.2 court reporter fees, mileage costs, transcript 111.3 costs, interpreter and transliterator fees, independent 111.4 evaluations ordered by the hearing officer, and rental of 111.5 hearing rooms, but not including district attorney fees. To 111.6 receive state aid under this paragraph, a school district shall 111.7 submit to the commissionerat the end of the school yearby 111.8 August 1 an itemized list of unreimbursed actual costs for fees 111.9 and other expenses under this paragraph incurred after June 30, 111.10 1998, for hearings completed during the previous fiscal year. 111.11 State funds used for aid to school districts under this 111.12 paragraph shall be based on the unreimbursed actual costs and 111.13 fees submitted by a districtfrom previous school years. 111.14 (b)For fiscal year 1999 and thereafter, a school district,111.15to the extent to which it prevails under United States Code,111.16title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal111.17Rules of Civil Procedure, shall receive state aid equal to 50111.18percent of the total actual cost of attorney fees incurred after111.19a request for a due process hearing under section 125A.09,111.20subdivisions 6, 9, and 11, is served upon the parties. A111.21district is eligible for reimbursement for attorney fees under111.22this paragraph only if:111.23(1) a court of competent jurisdiction determines that the111.24parent is not the prevailing party under United States Code,111.25title 20, section 1415(i)(3)(B)(D), or the parties stipulate111.26that the parent is not the prevailing party;111.27(2) the district has made a good faith effort to resolve111.28the dispute through mediation, but the obligation to mediate111.29does not compel the district to agree to a proposal or make a111.30concession; and111.31(3) the district made an offer of settlement under Rule 68111.32of the Federal Rules of Civil Procedure.111.33To receive aid, a school district that meets the criteria111.34of this paragraph shall submit to the commissioner at the end of111.35the school year an itemized list of unreimbursed actual attorney111.36fees associated with a due process hearing under section112.1125A.09, subdivisions 6, 9, and 11. Aid under this paragraph112.2for each school district is based on unreimbursed actual112.3attorney fees submitted by the district from previous school112.4years.112.5(c) For fiscal year 1999 and thereafter, a school district112.6is eligible to receive state aid for 50 percent of the total112.7actual cost of attorney fees it incurs in appealing to a court112.8of competent jurisdiction the findings, conclusions, and order112.9of a due process hearing under section 125A.09, subdivisions 6,112.109, and 11. The district is eligible for reimbursement under112.11this paragraph only if the commissioner authorizes the112.12reimbursement after evaluating the merits of the case. In a112.13case where the commissioner is a named party in the litigation,112.14the commissioner of the bureau of mediation services shall make112.15the determination regarding reimbursement. The commissioner's112.16decision is final.112.17(d)The commissioner shall provide districts with a form on 112.18 which to annually report litigation costs under this section and 112.19 shall base aid estimates onthosepreliminary reports submitted 112.20 by the district during the current fiscal year. 112.21 (Effective Date: Section 55 (125A.75, subdivision 8) is 112.22 effective the day following final enactment.) 112.23 Sec. 56. Minnesota Statutes 1998, section 125A.76, 112.24 subdivision 1, is amended to read: 112.25 Subdivision 1. [DEFINITIONS.] For the purposes of this 112.26 sectionand section 125A.77, the definitions in this subdivision 112.27 apply. 112.28 (a) "Base year" for fiscal year 1998 and later fiscal years 112.29 means the second fiscal year preceding the fiscal year for which 112.30 aid will be paid. 112.31 (b) "Basic revenue" has the meaning given it in section 112.32 126C.10, subdivision 2. For the purposes of computing basic 112.33 revenue pursuant to this section, each child with a disability 112.34 shall be counted as prescribed in section 126C.05, subdivision 1. 112.35 (c) "Essential personnel" means teachers, related services, 112.36 and support services staff providing direct services to students. 113.1 (d) "Average daily membership" has the meaning given it in 113.2 section 126C.05. 113.3 (e) "Program growth factor" means1.001.02 for fiscal year 113.420002002 and later. 113.5(f) "Aid percentage factor" means 60 percent for fiscal113.6year 1996, 70 percent for fiscal year 1997, 80 percent for113.7fiscal year 1998, 90 percent for fiscal year 1999, and 100113.8percent for fiscal years 2000 and later.113.9(g) "Levy percentage factor" means 100 minus the aid113.10percentage factor for that year.113.11 Sec. 57. Minnesota Statutes 1998, section 125A.76, 113.12 subdivision 2, is amended to read: 113.13 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 113.14 education base revenue equals the sum of the following amounts 113.15 computed using base year data: 113.16 (1) 68 percent of the salary of each essential person 113.17 employed in the district's program for children with a 113.18 disability during the fiscal year, not including the share of 113.19 salaries for personnel providing health-related services counted 113.20 in clause (8), whether the person is employed by one or more 113.21 districts or a Minnesota correctional facility operating on a 113.22 fee-for-service basis; 113.23 (2) for the Minnesota state academy for the deaf or the 113.24 Minnesota state academy for the blind, 68 percent of the salary 113.25 of each instructional aide assigned to a child attending the 113.26 academy, if that aide is required by the child's individual 113.27 education plan; 113.28 (3) for special instruction and services provided to any 113.29 pupil by contracting with public, private, or voluntary agencies 113.30 other than school districts, in place of special instruction and 113.31 services provided by the district, 52 percent of the difference 113.32 between the amount of the contract and the basic revenue of the 113.33 district for that pupil for the fraction of the school day the 113.34 pupil receives services under the contract; 113.35 (4) for special instruction and services provided to any 113.36 pupil by contracting for services with public, private, or 114.1 voluntary agencies other than school districts, that are 114.2 supplementary to a full educational program provided by the 114.3 school district, 52 percent of the amount of the contract for 114.4 that pupil; 114.5 (5) for supplies and equipment purchased or rented for use 114.6 in the instruction of children with a disability, not including 114.7 the portion of the expenses for supplies and equipment used to 114.8 provide health-related services counted in clause (8), an amount 114.9 equal to 47 percent of the sum actually expended by the 114.10 district, or a Minnesota correctional facility operating on a 114.11 fee-for-service basis, but not to exceed an average of $47 in 114.12 any one school year for each child with a disability receiving 114.13 instruction; 114.14 (6) for fiscal years 1997 and later, special education base 114.15 revenue shall include amounts under clauses (1) to (5) for 114.16 special education summer programs provided during the base year 114.17 for that fiscal year;and114.18 (7) for fiscal years 1999 and later, the cost of providing 114.19 transportation services for children with disabilities under 114.20 section 123B.92, subdivision 1, paragraph (b), clause (4); and 114.21 (8) for fiscal years 2001 and later the cost of salaries, 114.22 supplies and equipment, and other related costs actually 114.23 expended by the district for the nonfederal share of medical 114.24 assistance services according to section 256B.0625, subdivision 114.25 26. 114.26 (b) If requested by a school district operating a special 114.27 education program during the base year for less than the full 114.28 fiscal year, or a school district in which is located a 114.29 Minnesota correctional facility operating on a fee-for-service 114.30 basis for less than the full fiscal year, the commissioner may 114.31 adjust the base revenue to reflect the expenditures that would 114.32 have occurred during the base year had the program been operated 114.33 for the full fiscal year. 114.34 (c) Notwithstanding paragraphs (a) and (b), the portion of 114.35 a school district's base revenue attributable to a Minnesota 114.36 correctional facility operating on a fee-for-service basis 115.1 during the facility's first year of operating on a 115.2 fee-for-service basis shall be computed using current year data. 115.3 (Effective Date: Section 57 (125A.76, subdivision 2) is 115.4 effective July 1, 2000). 115.5 Sec. 58. Minnesota Statutes 1998, section 125A.76, 115.6 subdivision 4, is amended to read: 115.7 Subd. 4. [STATE TOTAL SPECIAL EDUCATIONREVENUEAID.] The 115.8 state total special educationrevenueaid for fiscal year1998115.9 2000 equals$358,542,000$436,834,000. The state total special 115.10 educationrevenueaid for fiscal year19992001 equals 115.11$435,322,000$436,834,000. The state total special 115.12 educationrevenueaid for later fiscal years equals: 115.13 (1) the state total special educationrevenueaid for the 115.14 preceding fiscal year; times 115.15 (2) the program growth factor; times 115.16 (3) the ratio of the state total average daily membership 115.17 for the current fiscal year to the state total average daily 115.18 membership for the preceding fiscal year. 115.19 Sec. 59. Minnesota Statutes 1998, section 125A.76, 115.20 subdivision 5, is amended to read: 115.21 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATIONREVENUEAID.] 115.22 (a) A school district's special educationrevenueaid for fiscal 115.23 year19962000 and later equals the state total special 115.24 educationrevenueaid, minus the amount determined 115.25 underparagraphparagraphs (b) and (c), times the ratio of the 115.26 district's adjusted special education base revenue to the state 115.27 total adjusted special education base revenue. If the state 115.28 board of education modifies its rules for special education in a 115.29 manner that increases a district's special education obligations 115.30 or service requirements, the commissioner shall annually 115.31 increase each district's special educationrevenueaid by the 115.32 amount necessary to compensate for the increased service 115.33 requirements. The additionalrevenueaid equals the cost in the 115.34 current year attributable to rule changes not reflected in the 115.35 computation of special education base revenue, multiplied by the 115.36 appropriate percentages from subdivision 2. 116.1 (b) Notwithstanding paragraph (a), if the special education 116.2 base revenue for a district equals zero, the special education 116.3revenueaid equals the amount computed according to subdivision 116.4 2 using current year data. 116.5 (c) Notwithstanding paragraphs (a) and (b), if the special 116.6 education base revenue for a district is greater than zero, and 116.7 the base year amount for the district under subdivision 2, 116.8 paragraph (a), clause (7), equals zero, the special education 116.9revenueaid equals the sum of the amount computed according to 116.10 paragraph (a), plus the amount computed according to subdivision 116.11 2, paragraph (a), clause (7), using current year data. 116.12 Sec. 60. Minnesota Statutes 1998, section 125A.79, 116.13 subdivision 1, is amended to read: 116.14 Subdivision 1. [DEFINITIONS.] For the purposes of this 116.15 section, the definitions in this subdivision apply. 116.16 (a) "Unreimbursed special education cost" means the sum of 116.17 the following: 116.18 (1) expenditures for teachers' salaries, contracted 116.19 services, supplies, equipment, and transportation services 116.20 eligible for revenue under section 125A.76; plus 116.21 (2) expenditures for tuition bills received under sections 116.22 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 116.23 under sections 125A.76, subdivision 2, and 124.3202, subdivision 116.24 1; minus 116.25 (3) revenue for teachers' salaries, contracted services, 116.26 supplies, and equipment under sections 124.3202 and 124A.76; 116.27 minus 116.28 (4) tuition receipts under sections 125A.03 to 125A.24 and 116.29 125A.65 for services eligible for revenue under sections 116.30 124.3202, subdivision 1, and 124A.76, subdivision 2. 116.31 (b) "General revenue" means for fiscal year 1996, the sum 116.32 of the general education revenue according to section 126C.10, 116.33 subdivision 1, as adjusted according to section 127A.47, 116.34 subdivision 7, plus the total referendum revenue according to 116.35 section 126C.17, subdivision 4. For fiscal years 1997 and 116.36 later, "general revenue" means the sum of the general education 117.1 revenue according to section 126C.10, subdivision 1, as adjusted 117.2 according to section 127A.47,subdivisionsubdivisions 7 and 8, 117.3 plus the total referendum revenue minus transportation sparsity 117.4 revenue minus total operating capital revenue. 117.5 (c) "Average daily membership" has the meaning given it in 117.6 section 126C.05. 117.7 (d) "Program growth factor" means 1.044 for fiscal year 117.8 2002 and 1.02 for fiscal year 2003 and later. 117.9 Sec. 61. Minnesota Statutes 1998, section 125A.79, 117.10 subdivision 2, is amended to read: 117.11 Subd. 2. [EXCESS COSTREVENUEAID, FISCAL YEARS 2000 AND 117.12 2001.] For1997 and laterfiscal years 2000 and 2001, a 117.13 district's special education excess costrevenueaid equals the 117.14 greatest of: 117.15 (a)7080 percent of the difference between (1) the 117.16 district's unreimbursed special education cost and (2)5.75.2 117.17 percentfor fiscal year 1997 and later yearsof the district's 117.18 general revenue; 117.19 (b) 70 percent of the difference between (1) the increase 117.20 in the district's unreimbursed special education cost between 117.21 the base year as defined in section 125A.76, subdivision 1, and 117.22 the current year and (2) 1.6 percent of the district's general 117.23 revenue; or 117.24 (c) zero. 117.25 Sec. 62. Minnesota Statutes 1998, section 125A.79, 117.26 subdivision 4, is amended to read: 117.27 Subd. 4. [TUITION.] Notwithstanding sections 125A.03 to 117.28 125A.24 and 125A.65, for children who are nonresidents of 117.29 Minnesota, receive services under section 125A.76, subdivisions 117.30 1 and 2,andare placed in the serving school district by court 117.31 action, and are from a state that does not have a reciprocity 117.32 agreement with the commissioner under section 125A.115, the 117.33 serving school district shall submit unreimbursed tuition bills 117.34 for eligible services to the department of children, families, 117.35 and learning instead of the resident school district. To be 117.36 eligible for reimbursement, the serving school district, as part 118.1 of its child intake procedures, must demonstrate good faith 118.2 effort to obtain from the placing agency a financial commitment 118.3 to pay tuition costs. The state shall not reimburse school 118.4 districts under this section if there is a special education 118.5 reciprocity agreement under section 125A.115 with the state of 118.6 which the student is a resident. 118.7 (Effective Date: Section 62 (125A.79, subdivision 4) is 118.8 effective July 1, 2000.) 118.9 Sec. 63. Minnesota Statutes 1998, section 125A.79, is 118.10 amended by adding a subdivision to read: 118.11 Subd. 5. [INITIAL EXCESS COST AID.] For fiscal years 2002 118.12 and later, a district's initial excess cost aid equals the 118.13 greatest of: 118.14 (1) 80 percent of the difference between (i) the district's 118.15 unreimbursed special education cost and (ii) 5.2 percent of the 118.16 district's general revenue; 118.17 (2) 70 percent of the difference between (i) the increase 118.18 in the district's unreimbursed special education cost between 118.19 the base year as defined in section 125A.76, subdivision 1, and 118.20 the current year and (ii) 1.6 percent of the district's general 118.21 revenue; or 118.22 (3) zero. 118.23 Sec. 64. Minnesota Statutes 1998, section 125A.79, is 118.24 amended by adding a subdivision to read: 118.25 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST 118.26 AID.] The state total special education excess cost aid for 118.27 fiscal year 2002 and later fiscal years equals: 118.28 (1) the state total special education excess cost aid for 118.29 the preceding fiscal year; times 118.30 (2) the program growth factor; times 118.31 (3) the ratio of the state total average daily membership 118.32 for the current fiscal year to the state total average daily 118.33 membership for the preceding fiscal year. 118.34 Sec. 65. Minnesota Statutes 1998, section 125A.79, is 118.35 amended by adding a subdivision to read: 118.36 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 119.1 district's special education excess cost aid for fiscal year 119.2 2002 and later equals the state total special education excess 119.3 cost aid times the ratio of the district's initial excess cost 119.4 aid to the state total initial excess cost aid. 119.5 Sec. 66. Minnesota Statutes 1998, section 125A.79, is 119.6 amended by adding a subdivision to read: 119.7 Subd. 8. [OUT-OF-STATE TUITION.] For children who are 119.8 residents of the state, receive services under section 125A.76, 119.9 subdivisions 1 and 2, and are placed in a care and treatment 119.10 facility by court action in a state that does not have a 119.11 reciprocity agreement with the commissioner under section 119.12 125A.115, the resident school district shall submit the balance 119.13 of the tuition bills, minus the amount of the basic revenue, as 119.14 defined by section 126C.10, subdivision 2, of the district for 119.15 the child and the special education aid, and any other aid 119.16 earned on behalf of the child. 119.17 (Effective Date: Section 66 (125A.79, subdivision 8) is 119.18 effective July 1, 2000.) 119.19 Sec. 67. [125A.80] [UNIFORM BILLING SYSTEM FOR THE 119.20 EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 119.21 The commissioner shall implement a uniform billing system 119.22 for school districts and other agencies, including private 119.23 providers, who provide the educational services for students who 119.24 are placed out of the home. The uniform billing system must: 119.25 (1) allow for the proper and timely billing to districts by 119.26 service providers with a minimum amount of district 119.27 administration; 119.28 (2) allow districts to bill the state for certain types of 119.29 special education and regular education services as provided by 119.30 law; 119.31 (3) provide flexibility for the types of services that are 119.32 provided for children placed out of the home, including day 119.33 treatment services; 119.34 (4) allow the commissioner to track the type, cost, and 119.35 quality of services provided for children placed out of the 119.36 home; 120.1 (5) conform existing special education and proposed regular 120.2 education billing procedures; 120.3 (6) provide a uniform reporting standard of per diem rates; 120.4 (7) determine allowable expenses and maximum reimbursement 120.5 rates for the state reimbursement of care and treatment services 120.6 according to section 124D.701; and 120.7 (8) provide a process for the district to appeal to the 120.8 commissioner tuition bills submitted to districts and to the 120.9 state. 120.10 Sec. 68. Minnesota Statutes 1998, section 126C.44, is 120.11 amended to read: 120.12 126C.44 [CRIME-RELATED COSTS LEVY.] 120.13For taxes levied in 1991 and subsequent years, payable in120.141992 and subsequent years,Each district may make a levy on all 120.15 taxable property located within the district for the purposes 120.16 specified in this subdivision. The maximum amount which may be 120.17 levied for all costs under this subdivision shall be equal to 120.18$1.50$2 multiplied by the population of the school district. 120.19 For purposes of this subdivision, "population" of the school 120.20 district means the same as contained in section 275.14. The 120.21 proceeds of the levy must be used for directly funding the 120.22 following purposes or for reimbursing the cities and counties 120.23 who contract with the district for the following purposes: (1) 120.24 to pay the costs incurred for the salaries, benefits, and 120.25 transportation costs of peace officers and sheriffs for liaison 120.26 services in the district's middle and secondary schools; (2) to 120.27 pay the costs for a drug abuse prevention program as defined in 120.28 Minnesota Statutes 1991 Supplement, section 609.101, subdivision 120.29 3, paragraph (f), in the elementary schools;or(3) to pay the 120.30 costs for a gang resistance education training curriculum in the 120.31 middle schools; or (4) to pay the costs for other crime 120.32 prevention and drug abuse and violence prevention measures taken 120.33 by the school district. The district must initially attempt to 120.34 contract fortheseservices to be provided by peace officers or 120.35 sheriffs with the police department of each city or the 120.36 sheriff's department of the county within the district 121.1 containing the school receiving the services. If a local police 121.2 department or a county sheriff's department does not wish to 121.3 provide the necessary services, the district may contract for 121.4 these services with any other police or sheriff's department 121.5 located entirely or partially within the school district's 121.6 boundaries. The levy authorized under this subdivision is not 121.7 included in determining the school district's levy limitations. 121.8 Sec. 69. [127A.11] [MONITOR MEDICAL ASSISTANCE SERVICES 121.9 FOR DISABLED STUDENTS.] 121.10 The commissioner of children, families, and learning, in 121.11 cooperation with the commissioner of human services, shall 121.12 monitor the costs of health-related, special education services 121.13 provided by public schools. 121.14 (Effective Date: Section 69 (127A.11) is effective July 1, 121.15 2000.) 121.16 Sec. 70. Minnesota Statutes 1998, section 127A.47, 121.17 subdivision 2, is amended to read: 121.18 Subd. 2. [REPORTING; REVENUE FOR HOMELESS.] For all school 121.19 purposes, unless otherwise specifically provided by law, a 121.20 homeless pupil is a resident of the school districtin which the121.21homeless shelter or other program, center, or facility assisting121.22the homeless pupil or the pupil's family is locatedthat enrolls 121.23 the pupil. 121.24 Sec. 71. Minnesota Statutes 1998, section 241.021, 121.25 subdivision 1, is amended to read: 121.26 Subdivision 1. [SUPERVISION OVER CORRECTIONAL 121.27 INSTITUTIONS.] (1) The commissioner of corrections shall inspect 121.28 and license all correctional facilities throughout the state, 121.29 whether public or private, established and operated for the 121.30 detention and confinement of persons detained or confined 121.31 therein according to law except to the extent that they are 121.32 inspected or licensed by other state regulating agencies. The 121.33 commissioner shall promulgate pursuant to chapter 14, rules 121.34 establishing minimum standards for these facilities with respect 121.35 to their management, operation, physical condition, and the 121.36 security, safety, health, treatment, and discipline of persons 122.1 detained or confined therein. Commencing September 1, 1980, no 122.2 individual, corporation, partnership, voluntary association, or 122.3 other private organization legally responsible for the operation 122.4 of a correctional facility may operate the facility unless 122.5 licensed by the commissioner of corrections. The commissioner 122.6 shall review the correctional facilities described in this 122.7 subdivision at least once every biennium, except as otherwise 122.8 provided herein, to determine compliance with the minimum 122.9 standards established pursuant to this subdivision. The 122.10 commissioner shall grant a license to any facility found to 122.11 conform to minimum standards or to any facility which, in the 122.12 commissioner's judgment, is making satisfactory progress toward 122.13 substantial conformity and the interests and well-being of the 122.14 persons detained or confined therein are protected. The 122.15 commissioner may grant licensure up to two years. The 122.16 commissioner shall have access to the buildings, grounds, books, 122.17 records, staff, and to persons detained or confined in these 122.18 facilities. The commissioner may require the officers in charge 122.19 of these facilities to furnish all information and statistics 122.20 the commissioner deems necessary, at a time and place designated 122.21 by the commissioner. The commissioner may require that any or 122.22 all such information be provided through the department of 122.23 corrections detention information system. The education program 122.24 offered in a correctional facility for the detention or 122.25 confinement of juvenile offenders must be approved by the 122.26 commissioner of children, families, and learning before the 122.27 commissioner of corrections may grant a license to the facility. 122.28 (2) Any state agency which regulates, inspects, or licenses 122.29 certain aspects of correctional facilities shall, insofar as is 122.30 possible, ensure that the minimum standards it requires are 122.31 substantially the same as those required by other state agencies 122.32 which regulate, inspect, or license the same aspects of similar 122.33 types of correctional facilities, although at different 122.34 correctional facilities. 122.35 (3) Nothing in this section shall be construed to limit the 122.36 commissioner of corrections' authority to promulgate rules 123.1 establishing standards of eligibility for counties to receive 123.2 funds under sections 401.01 to 401.16, or to require counties to 123.3 comply with operating standards the commissioner establishes as 123.4 a condition precedent for counties to receive that funding. 123.5 (4) When the commissioner finds that any facility described 123.6 in clause (1), except foster care facilities for delinquent 123.7 children and youth as provided in subdivision 2, does not 123.8 substantially conform to the minimum standards established by 123.9 the commissioner and is not making satisfactory progress toward 123.10 substantial conformance, the commissioner shall promptly notify 123.11 the chief executive officer and the governing board of the 123.12 facility of the deficiencies and order that they be remedied 123.13 within a reasonable period of time. The commissioner may by 123.14 written order restrict the use of any facility which does not 123.15 substantially conform to minimum standards to prohibit the 123.16 detention of any person therein for more than 72 hours at one 123.17 time. When, after due notice and hearing, the commissioner 123.18 finds that any facility described in this subdivision, except 123.19 county jails and lockups as provided in sections 641.26, 642.10, 123.20 and 642.11, does not conform to minimum standards, or is not 123.21 making satisfactory progress toward substantial compliance 123.22 therewith, the commissioner may issue an order revoking the 123.23 license of that facility. After revocation of its license, that 123.24 facility shall not be used until its license is renewed. When 123.25 the commissioner is satisfied that satisfactory progress towards 123.26 substantial compliance with minimum standard is being made, the 123.27 commissioner may, at the request of the appropriate officials of 123.28 the affected facility supported by a written schedule for 123.29 compliance, grant an extension of time for a period not to 123.30 exceed one year. 123.31 (5) As used in this subdivision, "correctional facility" 123.32 means any facility, including a group home, having a residential 123.33 component, the primary purpose of which is to serve persons 123.34 placed therein by a court, court services department, parole 123.35 authority, or other correctional agency having dispositional 123.36 power over persons charged with, convicted, or adjudicated to be 124.1 guilty or delinquent. 124.2 (Effective Date: Section 71 (241.021, subdivision 1) is 124.3 effective July 1, 2000.) 124.4 Sec. 72. Minnesota Statutes 1998, section 245A.04, is 124.5 amended by adding a subdivision to read: 124.6 Subd. 11. [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 124.7 education program offered in a residential or nonresidential 124.8 program, except for child care, foster care, or services for 124.9 adults, must be approved by the commissioner of children, 124.10 families, and learning before the commissioner of human services 124.11 may grant a license to the program. 124.12 (Effective Date: Section 72 (245.04, subdivision 11) is 124.13 effective July 1, 2000). 124.14 Sec. 73. Laws 1993, chapter 224, article 3, section 32, as 124.15 amended by Laws 1998, chapter 398, article 2, section 47, is 124.16 amended to read: 124.17 Sec. 32. [ASL GUIDELINES.] 124.18 (a) In determining appropriate licensure requirements for 124.19 teachers of deaf and hard of hearing students under Minnesota 124.20 Statutes, section125.189122A.28, subdivision 1, the board of 124.21 teaching shall develop the requirements according to the 124.22 guidelines described in this section. 124.23 (b) Each teacher must complete the American sign language 124.24 sign communication proficiency interview or a comparable 124.25 American sign language evaluation that the board of teaching, 124.26 the Minnesota association of deaf citizens, and the Minnesota 124.27 council for the hearing impaired accept as a means for 124.28 establishing the teacher's baseline level of American sign 124.29 language skills. A teacher shall not be charged for this 124.30 evaluation. 124.31 (c) Each teacher must complete 60 continuing education 124.32 credits in American sign language, American sign language 124.33 linguistics, or deaf culture for every 120 continuing education 124.34 credits the teacher is required to complete to renew a teaching 124.35 license. 124.36 (d) In order to obtain an initial license to teach deaf and 125.1 hard of hearing students, or to apply for a Minnesota teaching 125.2 license, after being licensed to teach in another state, a 125.3 person must demonstrate in the sign communication proficiency 125.4 interview an intermediate plus level of proficiency in American 125.5 sign language. 125.6 (e) Each teacher applying to renew a teaching license must 125.7 take the American sign language sign communication proficiency 125.8 interview or a comparable American sign language evaluation 125.9 every five years until the teacher demonstrates a minimum, or 125.10 survival plus, level of proficiency in American sign language. 125.11 (f) A teacher working directly with students whose primary 125.12 language is American sign language should demonstrate at least 125.13 an advanced level of proficiency in American sign language. The 125.14 board should not consider a minimum, or survival plus, level of 125.15 proficiency adequate for providing direct instruction to 125.16 students whose primary language is American sign language. 125.17 (g) To renew a teaching license, a teacher must comply with 125.18 paragraphs (c) and (e) in addition to other applicable board 125.19 requirements. A teacher's ability to demonstrate a minimum, or 125.20 survival plus, level of proficiency in American sign language is 125.21 not a condition for renewing the teacher's license. 125.22 (h) A teacher who demonstrates an increased proficiency in 125.23 American sign language skill in the American sign language sign 125.24 communication proficiency interview or a comparable American 125.25 sign language evaluation shall receive credit toward completing 125.26 the requirements of paragraph (c). The number of continuing 125.27 education credits the teacher receives is based on the teacher's 125.28 increased level of proficiency from the teacher's baseline level: 125.29 (1) 35 continuing education credits for demonstrating an 125.30 intermediate level of proficiency; 125.31 (2) 40 continuing education credits for demonstrating an 125.32 intermediate plus level of proficiency; 125.33 (3) 45 continuing education credits for demonstrating an 125.34 advanced level of proficiency; 125.35 (4) 50 continuing education credits for demonstrating an 125.36 advanced plus level of proficiency; 126.1 (5) 55 continuing education credits for demonstrating a 126.2 superior level of proficiency; and 126.3 (6) 60 continuing education credits for demonstrating a 126.4 superior plus level of proficiency. 126.5 (i) This section shall not apply to teachers of oral/aural 126.6 deaf education. 126.7 Sec. 74. Laws 1997, First Special Session chapter 4, 126.8 article 2, section 48, is amended to read: 126.9 Sec. 48. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 126.10 HOMELESS CHILDREN.] 126.11 A school district or a nonprofit entity contracting with a 126.12 school district to provide education and transition services for 126.13 homeless children is eligible for a matching grant for capital 126.14 facilities which serve homeless children and their families. 126.15 Grant proceeds may be used to design, furnish, equip, acquire, 126.16 repair, or construct a facility for providing education and 126.17 transition services for homeless pupils. To obtain a grant, a 126.18 school district or nonprofit entity must submit an application 126.19 to the commissioner of children, families, and learning in the 126.20 form and manner the commissioner establishes. Grants must be 126.21 matched by $1 of nonstate money for every$1$2 of grant money 126.22 received. The commissioner shall take into consideration the 126.23 number of concentration of homeless children served by a school 126.24 district when awarding grants. The commissioner may award 126.25 matching grants of up to $500,000 per school district. 126.26 Sec. 75. Laws 1997, First Special Session chapter 4, 126.27 article 2, section 51, subdivision 29, as amended by Laws 1998, 126.28 chapter 398, article 2, section 52, is amended to read: 126.29 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 126.30 the first grade preparedness program under Minnesota Statutes, 126.31 section 124.2613, and for school sites that have provided a 126.32 full-day kindergarten option for kindergarten students enrolled 126.33 in fiscal years 1996 and 1997: 126.34 $5,000,000 ..... 1998 126.35 $6,500,000 ..... 1999 126.36 (b) $4,200,000 in fiscal year 1998 must be distributed 127.1 according to Minnesota Statutes, section 124.2613, subdivision 127.2 3, and $4,200,000 in fiscal year 1999 must be distributed 127.3 according to Minnesota Statutes, section 124D.081, subdivision 3. 127.4 (c) $800,000 in fiscal year 1998 must be divided equally 127.5 among the four geographic regions defined in Minnesota Statutes, 127.6 section 124.2613, subdivision 3, and $800,000 in fiscal year 127.7 1999 must be divided equally among the four geographic regions 127.8 defined in Minnesota Statutes, section 124D.081, subdivision 3, 127.9 and must first be used to provide funding for school sites that 127.10 offered an optional full-day kindergarten program during the 127.11 1996-1997 school year, but did not receive funding for fiscal 127.12 year 1997 under Minnesota Statutes, section 124.2613. To be a 127.13 qualified site, licensed teachers must have taught the optional 127.14 full-day kindergarten classes. A district that charged a fee 127.15 for students participating in an optional full-day program is 127.16 eligible to receive the grant to provide full-day kindergarten 127.17 for all students as required by Minnesota Statutes, section 127.18124.2613124D.08, subdivision 4. Districts with eligible sites 127.19 must apply to the commissioner of children, families, and 127.20 learning for a grant. 127.21(c) This appropriation must first be used to fund programs127.22operating during the 1996-1997 school year under paragraph (b)127.23and Minnesota Statutes, section 124.2613.Any remaining funds 127.24 may be used to expand the number of sites providing first grade 127.25 preparedness programs according to Minnesota Statutes, section 127.26 124D.081, subdivision 3. 127.27 (d) $1,500,000 in fiscal year 1999 shall be divided equally 127.28 among the four geographic regions defined in Minnesota Statutes, 127.29 section 124D.081, subdivision 3, and must first be used to 127.30 eliminate aid proration for sites qualifying under paragraphs 127.31 (b) and (c). Any remaining funds may be used to expand the 127.32 number of sites providing first grade preparedness programs 127.33 according to Minnesota Statutes, section 124.2613, subdivision 3. 127.34 (Effective Date: Section 75 (Laws 1997, First Special 127.35 Session chapter 4, article 2, section 51, subdivision 29) is 127.36 effective the day following final enactment.) 128.1 Sec. 76. Laws 1998, chapter 398, article 2, section 53, is 128.2 amended to read: 128.3 Sec. 53. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 128.4 AND SERVICES.] 128.5 (a) The state board of educationmustshall amendallthe 128.6 rules in paragraph (c) relating to providing special instruction 128.7 and services to children with a disability so that the rules do 128.8 not impose requirements that exceed federal law.Consistent128.9with the report from the commissioner to compare federal and128.10state special education law, the state board may use the128.11expedited process under Minnesota Statutes 1997, section 14.389,128.12to amend these rules.128.13 (b) As of July 1, 1999,anythe rules in paragraph (c) 128.14 relating to providing special instruction and services to 128.15 children with a disability are invalid to the extent they exceed 128.16 the requirements in federal law unless a law is enacted before 128.17 July 1, 1999, indicating the intent of the state to exceed one 128.18 or more federal requirements. 128.19 (c) The state board shall amend the following rules 128.20 according to this section: Minnesota Rules, parts 3525.0200; 128.21 3525.0550; 3525.1100, subpart 2, item D; 3525.1329; 3525.2325; 128.22 3525.2385; 3525.2470; 3525.2550; 3525.2750; 3525.2900; 128.23 3525.3300; and 3525.3700. 128.24 Sec. 77. [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 128.25 SYSTEM.] 128.26 The commissioner of children, families, and learning shall 128.27 design a uniform billing system according to Minnesota Statutes, 128.28 section 125A.80. In designing a system, the commissioner shall 128.29 seek the input from the appropriate users of the billing system. 128.30 The commissioner shall implement a uniform billing system 128.31 for education services for children placed out of the home, 128.32 according to Minnesota Statutes, section 125A.80, by July 1, 128.33 2000. The commissioner shall provide training to school 128.34 districts on the uniform billing system. 128.35 Sec. 78. [COMMUNITY INTERVENTION AND PREVENTION GRANTS.] 128.36 Subdivision 1. [GRANT PROGRAM.] The commissioner of 129.1 children, families, and learning shall establish a community 129.2 intervention and prevention grant program for fiscal year 2000 129.3 for grants to nonprofit organizations, school districts or 129.4 school sites, or other community groups to provide 129.5 education-related services to at-risk children and their 129.6 families. Grants are available to programs that: 129.7 (1) enhance youth outreach services and link children to 129.8 activities, programs, and clubs outside of the regular school 129.9 day or year; 129.10 (2) create partnerships between culturally based community 129.11 organizations, parents, and school sites; 129.12 (3) provide parent and community support for families with 129.13 deaf or hard-of-hearing children; 129.14 (4) provide mentoring, tutoring, and early education 129.15 development for at-risk children, children who speak English as 129.16 a second language, or children with disabilities; 129.17 (5) provide services to children and their families who 129.18 require case management and counseling services due to 129.19 educational barriers related to economics, language, 129.20 transportation, illness, isolation, or disability; 129.21 (6) designate an individual teacher to provide family 129.22 connection services for children that emphasizes each individual 129.23 child's unique learning and development needs; 129.24 (7) establish community-based education programs through a 129.25 collaboration of the local school district, city, and 129.26 community-based organizations; or 129.27 (8) assist newly arrived immigrants ages 12 to 24 in 129.28 becoming literate and acquiring vocational skills. 129.29 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 129.30 school or school district, a nonprofit community-based 129.31 organization, a city, or a collaboration of one or more of these 129.32 groups. 129.33 Subd. 3. [APPLICATION PROCESS.] To obtain a grant, an 129.34 applicant must submit an application to the commissioner in the 129.35 form and manner established by the commissioner. The 129.36 application must describe how the applicant will meet one or 130.1 more of the outcomes described in subdivision 1. 130.2 Subd. 4. [GRANT AWARDS.] The commissioner may award grants 130.3 to applicants who meet the requirements of this section. The 130.4 commissioner must base the amount of the grant on the number of 130.5 children and families expected to participate in the program. 130.6 Sec. 79. [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 130.7 EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 130.8 FACILITIES.] 130.9 Subdivision 1. [TASK FORCE MEMBERSHIP.] The commissioner 130.10 of children, families, and learning shall convene a task force 130.11 to make recommendations on a system to approve education 130.12 programs serving children at care and treatment facilities, 130.13 including detention facilities. The task force shall be chaired 130.14 by a representative of the department of children, families, and 130.15 learning and, at a minimum, must include representatives from 130.16 each of the following organizations: the department of human 130.17 services, the department of corrections, the Minnesota school 130.18 boards association, the Minnesota association of school 130.19 administrators, Education Minnesota, association of Minnesota 130.20 counties, Minnesota county attorney association, conference of 130.21 chief judges, and the Minnesota council of child caring agencies. 130.22 By February 1, 2000, the commissioner shall submit the task 130.23 force's recommendations to the education committees of the 130.24 legislature. The task force sunsets on February 1, 2000. 130.25 Subd. 2. [RECOMMENDATIONS TO THE COMMISSIONER OF CHILDREN, 130.26 FAMILIES, AND LEARNING.] The task force shall consider the 130.27 following in making recommendations to the department of 130.28 children, families, and learning to implement a system to 130.29 approve education programs serving children at care and 130.30 treatment facilities, including detention facilities: 130.31 (1) minimal education standards consistent with state 130.32 graduation requirements that meet the individual needs of 130.33 children ages 6 to 21 served at care and treatment facilities, 130.34 unless the child has withdrawn from school or has received a 130.35 diploma; 130.36 (2) minimal average daily hour of education instruction; 131.1 (3) that state-approved education programs will employ or 131.2 contract with licensed teachers or community experts as defined 131.3 by the state board of teaching; 131.4 (4) how the education program will work together with the 131.5 district that the facility is located in and the district of 131.6 residence to provide or contract for education services when 131.7 possible; 131.8 (5) uniform educational assessment and screening procedures 131.9 to be used at the care and treatment facility before the child's 131.10 educational program can begin; 131.11 (6) that educational plans, based on the assessment of the 131.12 child, will be used to determine the educational services for 131.13 the child placed in a care and treatment facility; 131.14 (7) appropriate and consistent educational services to be 131.15 implemented related to the type of facility and placement of the 131.16 child; 131.17 (8) the level of monitoring and enforcement by the 131.18 department of children, families, and learning to ensure the 131.19 necessary oversight of the educational program; 131.20 (9) uniform procedures for transferring student records, 131.21 which are consistent with state and federal data practices laws; 131.22 (10) how the educational needs of the child will be 131.23 considered in the placement of the child; 131.24 (11) appropriate timelines for the department of children, 131.25 families, and learning to approve initial and continuing 131.26 education programs; and 131.27 (12) whether separate requirements are needed for 131.28 facilities that provide education services through the school 131.29 district and for facilities that provide educational services 131.30 without the assistance of a school district. 131.31 Sec. 80. [COMMISSIONER TO RECOMMEND OPTIONS ON SPECIAL 131.32 EDUCATION FUNDING FORMULAS.] 131.33 The commissioner of children, families, and learning shall 131.34 make recommendations to the legislature about different options 131.35 for a pupil-based special education funding formula. The 131.36 commissioner shall consult with special education stake-holders 132.1 and with other states that have adopted a pupil-based special 132.2 education funding formula. The commissioner shall consider the 132.3 following in examining a pupil-based special education funding 132.4 formula that: 132.5 (1) minimizes the distributional effect of various 132.6 pupil-based formulas as compared to the current formula; 132.7 (2) minimizes data requirements and recordkeeping by 132.8 districts; 132.9 (3) provides comparable resources for comparable students; 132.10 (4) provides districts with flexibility to deal with unique 132.11 conditions in a cost-effective manner; 132.12 (5) minimizes the incentive for districts to over-identify 132.13 students for special services or to classify students in a 132.14 higher cost disability level; and 132.15 (6) provides basic special education funding as well as 132.16 absorbing unique excess costs. 132.17 The commissioner shall report its findings to the education 132.18 committees of the legislature by December 1, 1999. 132.19 Sec. 81. [SPECIAL EDUCATION RULES.] 132.20 The commissioner shall adopt rules to update Minnesota 132.21 Rules, chapter 3525, for special education. Provisions of this 132.22 chapter that exceed federal requirements are deemed valid for 132.23 the purposes of providing special instruction and services to 132.24 children with a disability. In addition to technical changes, 132.25 corrections, clarifications, and similarly needed revisions, 132.26 specific rules shall be modified or repealed as indicated below: 132.27 (1) to Minnesota Rules, part 3525.0200, add definition of 132.28 caseload; 132.29 (2) revise Minnesota Rules, part 3525.0550, to update role 132.30 of IEP manager; 132.31 (3) repeal Minnesota Rules, part 3525.1100, subpart 2, item 132.32 D, on parent advisory council as duplicative; 132.33 (4) to Minnesota Rules, part 3525.1329, amend eligibility 132.34 criteria for emotional or behavior disorders so that the 132.35 standards reflect severe emotional disorder and professional 132.36 standards; 133.1 (5) amend Minnesota Rules, part 3525.2325, to revise 133.2 outdated standards for students placed for care and treatment to 133.3 be compatible with related legislation; 133.4 (6) repeal Minnesota Rules, part 3525.2550, on conduct 133.5 before assessment except for subpart 2, item C; 133.6 (7) add a rule to make the responsibilities of the IEP team 133.7 for assessment, IEP development, and placement decisions 133.8 consistent with federal requirements; 133.9 (8) repeal Minnesota Rules, part 3525.2750, on educational 133.10 assessment as duplicative; 133.11 (9) repeal Minnesota Rules, part 3525.2900, on IEP 133.12 development and content except for subparts 4 and 5 on regulated 133.13 interventions; and 133.14 (10) repeal Minnesota Rules, part 3525.3300, except item B, 133.15 on contents of notice as duplicative. 133.16 Sec. 82. [SPECIAL EDUCATION RULES; EXPEDITED PROCESS.] 133.17 Beginning no later than July 1, 1999, the commissioner 133.18 shall amend Minnesota Rules, chapter 3525, for special education 133.19 using the expedited process under Minnesota Statutes 1998, 133.20 section 14.389. In addition to technical changes, corrections, 133.21 clarifications, and similarly needed revisions, specific rules 133.22 shall be modified or repealed as indicated below: 133.23 (1) repeal Minnesota Rules, part 3525.0200, subpart 6a, on 133.24 definition of IEP; 133.25 (2) repeal Minnesota Rules, part 3525.0200, subpart 11a, on 133.26 definition of parent; 133.27 (3) amend Minnesota Rules, part 3525.0750, to include 133.28 children enrolled in nonpublic schools for child find purposes; 133.29 (4) amend Minnesota Rules, part 3525.0800, subpart 8, on 133.30 district responsibility for choice options in accordance with 133.31 legislation; 133.32 (5) amend Minnesota Rules, part 3525.0800, subpart 9, on 133.33 district responsibility for upper age limit in accordance with 133.34 legislation; 133.35 (6) repeal Minnesota Rules, part 3525.1150; 133.36 (7) amend Minnesota Rules, part 3525.1310, to add program 134.1 coordination and due process facilitation to list of 134.2 reimbursable activities; 134.3 (8) amend Minnesota Rules, part 3525.1325, to revise 134.4 eligibility criteria for autism to reflect professional 134.5 standards; 134.6 (9) amend Minnesota Rules, part 3525.1327, to make minor 134.7 revisions necessary to update eligibility criteria for 134.8 deaf-blindness; 134.9 (10) amend Minnesota Rules, part 3525.1331, to make minor 134.10 revisions necessary to update eligibility criteria for deaf and 134.11 hard of hearing; 134.12 (11) amend Minnesota Rules, part 3525.1333, to revise 134.13 eligibility criteria for cognitive impairment to reflect 134.14 professional standards; 134.15 (12) amend Minnesota Rules, part 3525.1335, to revise 134.16 eligibility criteria for other health-impaired to reflect 134.17 professional standards; 134.18 (13) amend Minnesota Rules, part 3525.1337, to make minor 134.19 revisions necessary to update eligibility criteria for physical 134.20 impairment; 134.21 (14) amend Minnesota Rules, part 3525.1341, to make minor 134.22 revisions necessary to update eligibility criteria for specific 134.23 learning disability; 134.24 (15) amend Minnesota Rules, part 3525.1343, to make minor 134.25 revisions necessary to update eligibility criteria for speech 134.26 and language impairments; 134.27 (16) amend Minnesota Rules, part 3525.1345, to make minor 134.28 revisions necessary to update eligibility criteria for blind and 134.29 vision impaired; 134.30 (17) amend Minnesota Rules, part 3525.1350, to make minor 134.31 revisions necessary to update eligibility criteria for early 134.32 childhood: special education; 134.33 (18) amend Minnesota Rules, part 3525.1352, to make minor 134.34 revisions necessary to update eligibility criteria for 134.35 developmental adapted physical education: special education; 134.36 (19) amend Minnesota Rules, part 3525.1354, to repeal 135.1 subpart 2 to drop documentation requirement on override 135.2 decisions; 135.3 (20) repeal Minnesota Rules, part 3525.1356, on exit 135.4 procedures; 135.5 (21) amend Minnesota Rules, part 3525.2335, to make minor 135.6 revisions to update standards for early childhood program 135.7 options, and repeal subpart 2, item C; 135.8 (22) amend Minnesota Rules, part 3525.2340, to revise 135.9 caseload standard for young children to clarify how caseload is 135.10 determined and to reflect supervision and safety needs of very 135.11 small children in various settings; 135.12 (23) amend Minnesota Rules, part 3525.2405, to repeal 135.13 subparts 2 and 3 on reimbursement standards for directors of 135.14 special education; 135.15 (24) repeal Minnesota Rules, part 3525.2420, on variance 135.16 request for director of special education; 135.17 (25) repeal Minnesota Rules, part 3525.2650, as duplicative 135.18 notice requirements; 135.19 (26) repeal Minnesota Rules, part 3525.3000, on periodic 135.20 reviews and documentation requirement; 135.21 (27) repeal Minnesota Rules, part 3525.3150, as duplicative 135.22 diploma requirements; 135.23 (28) repeal Minnesota Rules, part 3525.3200, as duplicative 135.24 notice requirement; 135.25 (29) amend Minnesota Rules, part 3525.3500, to repeal 135.26 duplicative notice requirements and mandate for districts to 135.27 initiate a hearing when refusing request for assessment; and 135.28 (30) amend Minnesota Rules, parts 3525.3800 to 3525.4700, 135.29 on due process hearings to make them compatible with state and 135.30 federal legislation. 135.31 Sec. 83. [APPROPRIATIONS.] 135.32 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 135.33 LEARNING.] The sums indicated in this section are appropriated 135.34 from the general fund to the department of children, families, 135.35 and learning for the fiscal years designated. 135.36 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 136.1 For grants to American Indian language and culture education 136.2 programs according to Minnesota Statutes, section 124D.81, 136.3 subdivision 1: 136.4 $730,000 ..... 2000 136.5 $730,000 ..... 2001 136.6 The 2000 appropriation includes $73,000 for 1999 and 136.7 $657,000 for 2000. 136.8 The 2001 appropriation includes $73,000 for 2000 and 136.9 $657,000 for 2001. 136.10 Any balance in the first year does not cancel but is 136.11 available in the second year. 136.12 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 136.13 American Indian education programs in school districts: 136.14 $175,000 ..... 2000 136.15 $175,000 ..... 2001 136.16 The 2000 appropriation includes $17,000 for 1999 and 136.17 $158,000 for 2000. 136.18 The 2001 appropriation includes $17,000 for 2000 and 136.19 $158,000 for 2001. 136.20 (b) These appropriations are available for expenditure with 136.21 the approval of the commissioner of the department of children, 136.22 families, and learning. 136.23 (c) The commissioner must not approve the payment of any 136.24 amount to a school district or school under this subdivision 136.25 unless that school district or school is in compliance with all 136.26 applicable laws of this state. 136.27 (d) Up to the following amounts may be distributed to the 136.28 following schools and school districts for each fiscal year: 136.29 $54,800 Pine Point School; $9,800 to independent school district 136.30 No. 166, Cook county; $14,900 to independent school district No. 136.31 432, Mahnomen; $14,200 to independent school district No. 435, 136.32 Waubun; $42,200 to independent school district No. 707, Nett 136.33 Lake; and $39,100 to independent school district No. 38, Red 136.34 Lake. These amounts must be spent only for the benefit of 136.35 American Indian pupils and to meet established state educational 136.36 standards or statewide requirements. 137.1 (e) Before a district or school can receive money under 137.2 this subdivision, the district or school must submit, to the 137.3 commissioner, evidence that it has complied with the uniform 137.4 financial accounting and reporting standards act, Minnesota 137.5 Statutes, sections 123B.75 to 123B.83. 137.6 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 137.7 GRANTS.] For American Indian post-secondary preparation grants 137.8 according to Minnesota Statutes, section 124D.85: 137.9 $982,000 ..... 2000 137.10 $982,000 ..... 2001 137.11 Any balance in the first year does not cancel but is 137.12 available in the second year. 137.13 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 137.14 Indian scholarships according to Minnesota Statutes, section 137.15 124D.84: 137.16 $1,875,000 ..... 2000 137.17 $1,875,000 ..... 2001 137.18 Any balance in the first year does not cancel but is 137.19 available in the second year. 137.20 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 137.21 joint grants to assist Indian people to become teachers: 137.22 $190,000 ..... 2000 137.23 $190,000 ..... 2001 137.24 (b) Up to $70,000 each year is for a joint grant to the 137.25 University of Minnesota at Duluth and independent school 137.26 district No. 709, Duluth. 137.27 (c) Up to $40,000 each year is for a joint grant to each of 137.28 the following: 137.29 (1) Bemidji state university and independent school 137.30 district No. 38, Red Lake; 137.31 (2) Moorhead state university and a school district located 137.32 within the White Earth reservation; and 137.33 (3) Augsburg college, independent school district No. 625, 137.34 St. Paul, and special school district No. 1, Minneapolis. 137.35 (d) Money not used for students at one location may be 137.36 transferred for use at another location. 138.1 (e) Any balance in the first year does not cancel but is 138.2 available in the second year. 138.3 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 138.4 school aid according to Minnesota Statutes, section 124D.83: 138.5 $2,706,000 ..... 2000 138.6 $2,790,000 ..... 2001 138.7 The 2000 appropriation includes $283,000 for 1999 and 138.8 $2,423,000 for 2000. 138.9 The 2001 appropriation includes $269,000 for 2000 and 138.10 $2,521,000 for 2001. 138.11 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 138.12 early childhood family education programs at tribal contract 138.13 schools: 138.14 $68,000 ..... 2000 138.15 $68,000 ..... 2001 138.16 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 138.17 program grants: 138.18 $1,750,000 ..... 2000 138.19 $1,750,000 ..... 2001 138.20 These amounts may be used for magnet school programs 138.21 according to Minnesota Statutes, section 124D.88. 138.22 Subd. 10. [INTEGRATION PROGRAMS.] For grants according to: 138.23 minority fellowship grants according to Laws 1994, chapter 647, 138.24 article 8, section 29; minority teacher incentives according to 138.25 Minnesota Statutes, section 122A.65; teachers of color grants 138.26 according to Minnesota Statutes, section 122A.64; and cultural 138.27 exchange grants according to Minnesota Statutes, section 124D.89: 138.28 $1,000,000 ..... 2000 138.29 $1,000,000 ..... 2001 138.30 Any balance in the first year does not cancel but is 138.31 available in the second year. 138.32 In awarding teacher of color grants, priority must be given 138.33 to districts that have students who are currently in the process 138.34 of completing their academic program. 138.35 Subd. 11. [SPECIAL EDUCATION AID.] For special education 138.36 aid according to Minnesota Statutes, section 125A.75: 139.1 $432,451,000 ..... 2000 139.2 $436,834,000 ..... 2001 139.3 The 2000 appropriation includes $39,330,000 for 1999 and 139.4 $393,151,000 for 2000. 139.5 The 2001 appropriation includes $43,683,000 for 2000 and 139.6 $393,151,000 for 2001. 139.7 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 139.8 according to Minnesota Statutes, section 125A.75, subdivision 3, 139.9 for children with a disability placed in residential facilities 139.10 within the district boundaries for whom no district of residence 139.11 can be determined: 139.12 $ 443,000 ..... 2000 139.13 $1,064,000 ..... 2001 139.14 If the appropriation for either year is insufficient, the 139.15 appropriation for the other year is available. Any balance in 139.16 the first year does not cancel but is available in the second 139.17 year. 139.18 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 139.19 teacher travel for home-based services according to Minnesota 139.20 Statutes, section 125A.75, subdivision 1: 139.21 $133,000 ..... 2000 139.22 $139,000 ..... 2001 139.23 The 2000 appropriation includes $11,000 for 1999 and 139.24 $122,000 for 2000. 139.25 The 2001 appropriation includes $13,000 for 2000 and 139.26 $126,000 for 2001. 139.27 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 139.28 cost aid: 139.29 $56,659,000 ..... 2000 139.30 $84,838,000 ..... 2001 139.31 The 2000 appropriation includes $5,666,000 for 1999 and 139.32 $50,993,000 for 2000. 139.33 The 2001 appropriation includes $8,484,000 for 2000 and 139.34 $76,354,000 for 2001. 139.35 Subd. 15. [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 139.36 DISABILITIES.] For aid for school-to-work programs for pupils 140.1 with disabilities according to Minnesota Statutes, section 140.2 124D.454: 140.3 $8,892,000 ..... 2000 140.4 $8,968,000 ..... 2001 140.5 The 2000 appropriation includes $808,000 for 1999 and 140.6 $8,084,000 for 2000. 140.7 The 2001 appropriation includes $898,000 for 2000 and 140.8 $8,070,000 for 2001. 140.9 Subd. 16. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 140.10 education levy equalization aid according to Minnesota Statutes, 140.11 section 125A.77: 140.12 $526,000 ..... 2000 140.13 The 2000 appropriation includes $526,000 for 1999 and $0 140.14 for 2000. 140.15 Subd. 17. [INTEGRATION AID.] For integration aid: 140.16 $37,182,000 ..... 2000 140.17 $43,787,000 ..... 2001 140.18 The 2000 appropriation includes $2,902,000 for 1999 and 140.19 $34,280,000 for 2000. 140.20 The 2001 appropriation includes $3,809,000 for 2000 and 140.21 $39,978,000 for 2001. 140.22 Subd. 18. [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 140.23 additional revenue for homeless students according to Minnesota 140.24 Statutes, section 124D.70: 140.25 $60,000 ..... 2000 140.26 $60,000 ..... 2001 140.27 The 2000 appropriation includes $6,000 for 1999 and $54,000 140.28 for 2000. 140.29 The 2001 appropriation includes $6,000 for 2000 and $54,000 140.30 for 2001. 140.31 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 140.32 TRANSPORTATION GRANTS.] For interdistrict desegregation or 140.33 integration transportation grants under Minnesota Statutes, 140.34 section 124D.87: 140.35 $970,000 ..... 2000 140.36 $970,000 ..... 2001 141.1 Any balance in the first year does not cancel but is 141.2 available in the second year. 141.3 Subd. 20. [COMMUNITY INTERVENTION AND PREVENTION 141.4 GRANTS.] For community intervention and prevention grants: 141.5 $5,200,000 ..... 2000 141.6 Of this amount, $100,000 is for a grant to the city of St. 141.7 Louis Park for the Meadowbrook collaborative housing project; 141.8 $300,000 is for a grant to the southwest and west central 141.9 service cooperative to operate the child guide prevention 141.10 program; $500,000 is for programs for community support for 141.11 families with deaf and hard-of-hearing children; $500,000 is for 141.12 school-linked prevention and early intervention programs; 141.13 $750,000 is for the family connections program; $750,000 is for 141.14 a grant to the YMCA of metropolitan Minneapolis for the Beacons 141.15 Project; $500,000 is for grants to culturally based community 141.16 organizations to improve the education outcomes of students who 141.17 speak English as a second language; $500,000 is for grants to 141.18 organizations that provide job training programs for immigrants 141.19 ages 12 to 24; and $1,000,000 is a one-time appropriation for 141.20 adolescent parenting grants under Laws 1997, chapter 162, 141.21 article 2, section 28. 141.22 This appropriation is available until June 30, 2001. 141.23 Subd. 21. [CENTER FOR VICTIMS OF TORTURE.] For the center 141.24 for victims of torture to provide training, consultation, and 141.25 support services in public schools with significant populations 141.26 of traumatized refugee and immigrant students: 141.27 $75,000 ..... 2000 141.28 $75,000 ..... 2001 141.29 Any balance in the first year does not cancel but is 141.30 available in the second year. 141.31 Subd. 22. [GRANTS TO INDEPENDENT SCHOOL DISTRICT NO. 707, 141.32 NETT LAKE.] For grants to independent school district No. 707, 141.33 Nett Lake: 141.34 $165,000 ..... 2000 141.35 $165,000 ..... 2001 141.36 $30,000 each year is for grants to pay property and boiler 142.1 insurance premiums under Minnesota Statutes, section 466.06. 142.2 $30,000 each year is for grants to pay obligations of the 142.3 school district for unemployment compensation. The 142.4 appropriation must be paid to the appropriate state agency for 142.5 such purposes in the name of the school district. 142.6 $70,000 each year is for grants to pay for the maintenance 142.7 of school facilities. 142.8 $35,000 each year is for grants for a media specialist for 142.9 preschool through grade 6. 142.10 Subd. 23. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 142.11 HOMELESS CHILDREN.] For matching grants for education programs 142.12 serving homeless children under Laws 1997, First Special Session 142.13 chapter 4, article 2, section 48: 142.14 $1,100,000 ..... 2000 142.15 This appropriation is available until June 30, 2001. 142.16 Subd. 24. [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a 142.17 special education revenue adjustment for independent school 142.18 district No. 535, Rochester: 142.19 $150,000 ..... 2000 142.20 $ 15,000 ..... 2001 142.21 Subd. 25. [CARE AND TREATMENT INSTRUCTIONAL AID.] For care 142.22 and treatment instructional aid under Minnesota Statutes, 142.23 section 124D.701: 142.24 $2,490,000 ..... 2001 142.25 If the appropriation under this section is insufficient to 142.26 cover the expenses submitted by districts, the commissioner 142.27 shall prorate the aid to districts based on the expenses 142.28 submitted by districts. 142.29 Subd. 26. [OUT-OF-STATE TUITION.] For out-of-state tuition 142.30 under Minnesota Statutes, section 125A.79, subdivision 8: 142.31 $250,000 ..... 2001 142.32 If the appropriation under this section is insufficient to 142.33 cover the expenses submitted by districts, the commissioner 142.34 shall prorate the aid to districts based on the expenses 142.35 submitted by districts. 142.36 Subd. 27. [UNIFORM BILLING SYSTEM; TECHNICAL 143.1 ASSISTANCE.] For implementing an effective and efficient uniform 143.2 billing system for the educational costs of students placed out 143.3 of the home: 143.4 $100,000 ..... 2000 143.5 Subd. 28. [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 143.6 AND TREATMENT FACILITIES.] For developing and implementing a 143.7 system to approve education costs of students placed out of the 143.8 home: 143.9 $200,000 ..... 2000 143.10 This appropriation is available until June 30, 2001. 143.11 Subd. 29. [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 143.12 for the first-grade preparedness program under Minnesota 143.13 Statutes, section 124D.081: 143.14 $7,000,000 ..... 2000 143.15 $7,000,000 ..... 2001 143.16 For each year, the appropriation must first be used to fund 143.17 programs operating during the 1998-1999 school year, unless the 143.18 site's ranking, as determined by Minnesota Statutes, section 143.19 124D.081, subdivision 3, falls below the state average for 143.20 elementary schools. Any remaining funds may be used to expand 143.21 the number of sites according to Minnesota Statutes, section 143.22 124D.081, subdivision 3. 143.23 Subd. 30. [LITIGATION COSTS.] For paying the costs a 143.24 district incurs under Minnesota Statutes, section 125A.75, 143.25 subdivision 8: 143.26 $500,000 ..... 2000 143.27 $500,000 ..... 2001 143.28 Subd. 31. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 143.29 reimbursing serving school districts for unreimbursed eligible 143.30 expenditures attributable to children placed in the serving 143.31 school district by court action under Minnesota Statutes, 143.32 section 125A.79, subdivision 4: 143.33 $350,000 ..... 2000 143.34 $350,000 ..... 2001 143.35 Sec. 84. [REVISOR INSTRUCTION.] 143.36 In the next and subsequent editions of Minnesota Statutes 144.1 and Minnesota Rules, the revisor shall change all references to 144.2 the "Faribault academies" to the "Minnesota state academies." 144.3 Sec. 85. [REPEALER.] 144.4 Minnesota Statutes 1998, sections 124D.081, subdivision 7; 144.5 125A.76, subdivision 6; 125A.77; and 125A.79, subdivision 3, are 144.6 repealed. Laws 1995, First Special Session chapter 3, article 144.7 3, section 11; Laws 1997, First Special Session chapter 4, 144.8 article 2, section 51, subdivision 10; and Laws 1998, chapter 144.9 398, article 2, sections 53 and 57, are repealed. Minnesota 144.10 Rules, part 3525.2470, is repealed. 144.11 Sec. 86. [EFFECTIVE DATES.] 144.12 When preparing the prekindergarten through grade 12 144.13 education conference committee report for adoption by the 144.14 legislature, the revisor shall combine all effective date 144.15 notations in this article into this effective dates section. 144.16 ARTICLE 3 144.17 LIFELONG LEARNING 144.18 Section 1. Minnesota Statutes 1998, section 124D.453, 144.19 subdivision 3, is amended to read: 144.20 Subd. 3. [SECONDARY VOCATIONAL AID.] A district's 144.21 secondary vocational education aid forafiscal year 2000 equals 144.22 the lesser of: 144.23 (a)$80$42 times the district's average daily membership 144.24 in grades 10 to 12; or 144.25 (b) 25 percent of approved expenditures for the following: 144.26 (1) salaries paid to essential, licensed personnel 144.27 providing direct instructional services to students in that 144.28 fiscal year for services rendered in the district's approved 144.29 secondary vocational education programs; 144.30 (2) contracted services provided by a public or private 144.31 agency other than a Minnesota school district or cooperative 144.32 center under subdivision 7; 144.33 (3) necessary travel between instructional sites by 144.34 licensed secondary vocational education personnel; 144.35 (4) necessary travel by licensed secondary vocational 144.36 education personnel for vocational student organization 145.1 activities held within the state for instructional purposes; 145.2 (5) curriculum development activities that are part of a 145.3 five-year plan for improvement based on program assessment; 145.4 (6) necessary travel by licensed secondary vocational 145.5 education personnel for noncollegiate credit bearing 145.6 professional development; and 145.7 (7) specialized vocational instructional supplies. 145.8 (c) Up to ten percent of a district's secondary vocational 145.9 aid may be spent on equipment purchases. Districts using 145.10 secondary vocational aid for equipment purchases must report to 145.11 the department on the improved learning opportunities for 145.12 students that result from the investment in equipment. 145.13 Sec. 2. Minnesota Statutes 1998, section 124D.453, 145.14 subdivision 5, is amended to read: 145.15 Subd. 5. [AID GUARANTEE.] Notwithstanding subdivision 3, 145.16 the secondary vocational education aid for a district is not 145.17 less than the lesser of: 145.18 (a)9550 percent of the secondary vocational education aid 145.19 the district received for the previous fiscal year; or 145.20 (b) 40 percent of the approved expenditures for secondary 145.21 vocational programs included in subdivision 3, paragraph (b). 145.22 Sec. 3. Laws 1997, First Special Session chapter 4, 145.23 article 3, section 25, subdivision 6, is amended to read: 145.24 Subd. 6. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 145.25 independent school district No. 330, Heron Lake-Okabena, to 145.26 establish the Southwest Star Concept School: 145.27 $193,000 ..... 1998 145.28 This appropriation may be used for equipment, activities 145.29 beyond the classroom walls, professional planning assistance, 145.30 monitoring, evaluating, and reporting activities related to the 145.31 case study prepared in section 22. 145.32 This appropriation is available until June 30, 1999. 145.33 (Effective date: Section 3 (Laws 1997, First Special 145.34 Session chapter 4, article 3, section 25, subdivision 6) is 145.35 effective retroactive to July 1, 1997.) 145.36 Sec. 4. [APPROPRIATIONS.] 146.1 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 146.2 LEARNING.] The sums indicated in this section are appropriated 146.3 from the general fund to the department of children, families, 146.4 and learning for the fiscal years designated. 146.5 Subd. 2. [SECONDARY VOCATIONAL AID.] For secondary 146.6 vocational education aid according to Minnesota Statutes, 146.7 section 124D.453: 146.8 $7,473,000 ..... 2000 146.9 $ 702,000 ..... 2001 146.10 The 2000 appropriation includes $1,159,000 for 1999 and 146.11 $6,314,000 for 2000. 146.12 The 2001 appropriation includes $702,000 for 2000 and $0 146.13 for 2001. 146.14 Subd. 3. [YOUTH WORKS PROGRAM.] For funding youth works 146.15 programs according to Minnesota Statutes, sections 124D.37 to 146.16 124D.45: 146.17 $1,788,000 ..... 2000 146.18 $1,788,000 ..... 2001 146.19 A grantee organization may provide health and child care 146.20 coverage to the dependents of each participant enrolled in a 146.21 full-time youth works program to the extent coverage is not 146.22 otherwise provided. 146.23 Any balance in the first year does not cancel but is 146.24 available in the second year. 146.25 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 146.26 GRANTS.] For education and employment transitions programming 146.27 under Minnesota Statutes, section 124D.46: 146.28 $3,225,000 ..... 2000 146.29 $3,225,000 ..... 2001 146.30 $200,000 each year is for the development and 146.31 implementation of the ISEEK Internet-based education and 146.32 employment information system. 146.33 $1,000,000 each year is for an employer rebate program for 146.34 qualifying employers who offer youth internships to educators. 146.35 $500,000 each year is for youth entrepreneurship grants. 146.36 Of this amount, $100,000 each year is for the high school 147.1 student-run business project in independent school district No. 147.2 175, Westbrook. This appropriation shall be used for salaries, 147.3 travel, seminars, equipment, contractual expenses, and other 147.4 expenses related to providing assistance to other districts who 147.5 are starting entrepreneurship programs. Independent school 147.6 district No. 175, Westbrook, shall also work in coordination 147.7 with the commissioner to develop a directory of entrepreneurship 147.8 programs in the state. 147.9 $750,000 each year is for youth apprenticeship grants. 147.10 $300,000 each year is for grants to programs in cities of 147.11 the first class to expand the number of at-risk students 147.12 participating in school-to-work projects. 147.13 $350,000 each year is for agricultural school-to-work 147.14 grants. 147.15 $125,000 each year is to conduct a high school follow-up 147.16 survey to include first, third, and sixth year graduates of 147.17 Minnesota schools. 147.18 Subd. 5. [LEARN AND EARN GRADUATION ACHIEVEMENT 147.19 PROGRAM.] For the learn and earn graduation achievement program 147.20 under Minnesota Statutes, section 124D.32: 147.21 $1,500,000 ..... 2000 147.22 $1,500,000 ..... 2001 147.23 This appropriation is available until June 30, 2001. 147.24 Subd. 6. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 147.25 independent school district No. 330, Heron Lake-Okabena, to 147.26 continue to develop the Southwest Star Concept School authorized 147.27 under Laws 1997, First Special Session chapter 4, article 3, 147.28 section 22: 147.29 $179,000 ..... 2000 147.30 The grant may be used to expand the school's technology 147.31 department, music and fine arts program, theater program, arts 147.32 program, and health and physical education program. 147.33 This appropriation is available until June 30, 2001. 147.34 Sec. 5. [REPEALER.] 147.35 Minnesota Statutes 1998, section 124D.453, subdivision 1, 147.36 is repealed effective July 1, 2000. 148.1 Sec. 6. [EFFECTIVE DATE.] 148.2 When preparing the prekindergarten through grade 12 148.3 education conference committee report for adoption by the 148.4 legislature, the revisor shall combine all effective date 148.5 notations in this article into this effective date section. 148.6 ARTICLE 4 148.7 FACILITIES AND TECHNOLOGY 148.8 Section 1. Minnesota Statutes 1998, section 123B.53, is 148.9 amended to read: 148.10 123B.53 [DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 148.11 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 148.12 section, the eligibledebt servicefacilities revenue of a 148.13 district is defined as follows: 148.14 (1) the amount needed to produce between five and six 148.15 percent in excess of the amount needed to meet when due the 148.16 principal and interest payments on the obligations of the 148.17 district for eligible projects according to subdivision 2, 148.18 including the amounts necessary for repayment of energy loans 148.19 according to section216C.37 or sections 298.292 to 298.298148.20 126C.40, subdivision 5, debt service loans and capital loans, 148.21 lease purchase payments under section 126C.40,subdivision148.22 subdivisions 2 and 6; Laws 1995, First Special Session chapter 148.23 3, article 5, section 19; and Laws 1997, First Special Session 148.24 chapter 4, article 4, section 30, alternative facilitieslevies148.25 revenue under section 123B.59, subdivision 5, historic building 148.26 revenue, under section 123B.64, subdivision 2; health and safety 148.27 revenue, under section 123B.57, subdivision 3; handicapped 148.28 access and fire safety revenue, under section 123B.58, 148.29 subdivision 3; building construction down payment and lease 148.30 program, under section 123B.63; building lease revenue, under 148.31 section 126C.40, subdivision 1; and cooperative building repair 148.32 revenue, under section 126C.40, subdivision 3, minus 148.33 (2) the amount of debt service excess levy reduction for 148.34 that school year calculated according to the procedure 148.35 established by the commissioner. 148.36 (b) The obligations in this paragraph are excluded from 149.1 eligibledebt servicefacilities revenue: 149.2 (1) obligations under section 123B.61; 149.3 (2) the part of debt service principal and interest paid 149.4 from the taconite environmental protection fund or northeast 149.5 Minnesota economic protection trust; 149.6 (3) obligations issued under Laws 1991, chapter 265, 149.7 article 5, section 18, as amended by Laws 1992, chapter 499, 149.8 article 5, section 24; and 149.9 (4) obligations under section 123B.62. 149.10 (c) For purposes of this section, if a preexisting school 149.11 district reorganized under sections 123A.35 to 123A.43, 123A.46, 149.12 and 123A.48 is solely responsible for retirement of the 149.13 preexisting district's bonded indebtedness, capital loans or 149.14 debt service loans,debt servicefacilities equalization aid 149.15 must be computed separately for each of the preexisting 149.16 districts. 149.17 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 149.18 district'sdebt service levyfacilities revenue qualify fordebt149.19servicefacilities equalization: 149.20 (1) debt service for repayment of principal and interest on 149.21 bonds issued before July 2, 1992; 149.22 (2) debt service for bonds refinanced after July 1, 1992, 149.23 if the bond schedule has been approved by the commissioner and, 149.24 if necessary, adjusted to reflect a 20-year maturity schedule; 149.25and149.26 (3) debt service for bonds issued after July 1, 1992, for 149.27 construction projects that have received a positive review and 149.28 comment according to section 123B.71, if the commissioner has 149.29 determined that the district has met the criteria under section 149.30 126C.69, subdivision 3, and if the bond schedule has been 149.31 approved by the commissioner and, if necessary, adjusted to 149.32 reflect a 20-year maturity schedule.; 149.33 (4) alternative facilities revenue, according to section 149.34 123B.59, subdivision 5; 149.35 (5) historic building revenue, according to section 149.36 123B.64, subdivision 2; 150.1 (6) health and safety revenue, according to section 150.2 123B.57, subdivision 3; 150.3 (7) handicapped access and fire safety revenue, according 150.4 to section 123B.58, subdivision 3; 150.5 (8) building construction and lease revenue, according to 150.6 section 123B.63, subdivision 3; 150.7 (9) building lease revenue, according to section 126C.40, 150.8 subdivision 1; and 150.9 (10) cooperative building repair revenue, according to 150.10 section 126C.40, subdivision 3. 150.11 (b) The criterion in section 126C.69, subdivision 3, 150.12 paragraph (a), clause (2), shall be considered to have been met 150.13 if the district in the fiscal year in which the bonds are 150.14 authorized at an election conducted under chapter 475:150.15(i) if grades 9 through 12 are to be served by the150.16facility, and an average of at least 66 pupils per grade in150.17these grades are served; or150.18(ii)is eligible for elementary or secondary sparsity 150.19 revenue. 150.20 (c) The criterion in section 126C.69, subdivision 3, 150.21 paragraph (a), clause (2), shall also be considered to have been 150.22 met if the construction project under review serves students in 150.23 kindergarten to grade 8. Only the debt service levy for that 150.24 portion of the facility serving students in prekindergarten to 150.25 grade 8, as determined by the commissioner, shall be eligible 150.26 for debt service equalization under this paragraph. 150.27 (d) The criterion described in section 126C.69, subdivision 150.28 3, paragraph (a), clause (9), does not apply to bonds authorized 150.29 by elections held before July 1, 1992. 150.30 (e) For the purpose of this subdivision the department 150.31 shall determine the eligibility for sparsity at the location of 150.32 the new facility, or the site of the new facility closest to the 150.33 nearest operating school if there is more than one new facility. 150.34 (f) Notwithstanding paragraphs (a) to (e), debt service for 150.35 repayment of principal and interest on bonds issued after July 150.36 1, 1997, does not qualify fordebt servicefacilities 151.1 equalization aid unless the primary purpose of the facility is 151.2 to serve students in kindergarten through grade 12. 151.3 Subd. 3. [NOTIFICATION.] A district eligible fordebt151.4servicefacilities equalization revenue under subdivision 2 must 151.5 notify the commissioner of the amount of its intendeddebt151.6servicefacilities equalization revenue calculated under 151.7 subdivision 1 for all bonds sold prior to the notification by 151.8 July 1 of the calendar year the levy is certified. 151.9 Subd. 4. [DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 151.10(a) For fiscal years 1995 and later,Thedebt servicefacilities 151.11 equalization revenue of a district equals the eligibledebt151.12servicefacilities equalization revenue minus the amount raised 151.13 by a levy often12 percent times the adjusted net tax capacity 151.14 of the district. 151.15(b) For fiscal year 1993, debt service equalization revenue151.16equals one-third of the amount calculated in paragraph (a).151.17(c) For fiscal year 1994, debt service equalization revenue151.18equals two-thirds of the amount calculated in paragraph (a).151.19 Subd. 5. [EQUALIZEDDEBT SERVICEFACILITIES LEVY.] To 151.20 obtaindebt servicefacilities equalization revenue, a district 151.21 must levy an amount not to exceed the district'sdebt service151.22 facilities equalization revenue times the lesser of one or the 151.23 ratio of: 151.24 (1) the quotient derived by dividing the adjusted net tax 151.25 capacity of the district for the year before the year the levy 151.26 is certified by theresidentadjusted pupil units in the 151.27 district for the school year ending in the year prior to the 151.28 year the levy is certified; to 151.29 (2)$4,707.50$4,000. 151.30 Subd. 6. [DEBT SERVICEFACILITIES EQUALIZATION AID.] A 151.31 district'sdebt servicefacilities equalization aid is the 151.32 difference between thedebt servicefacilities equalization 151.33 revenue and the equalizeddebt servicefacilities levy. If a 151.34 district does not levy the entire amount permitted, the 151.35 district's aid must be reduced in proportion to the amount 151.36 levied. If the amount ofdebt servicefacilities equalization 152.1 aid actually appropriated for the fiscal year in which this 152.2 calculation is made is insufficient to fully funddebt service152.3 facilities equalization aid, the commissioner shall prorate the 152.4 amount of aid across all eligible districts. 152.5 Subd. 7. [DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 152.6 SCHEDULE.]Debt serviceFacilities equalization aid must be paid 152.7as follows: 30 percent before September 15, 30 percent before152.8December 15, 30 percent before March 15, and a final payment of152.9ten percent by July 15 of the subsequent fiscal yearaccording 152.10 to section 127A.45, subdivision 10. 152.11 Subd. 8. [DEBT SERVICE PRIORITY.] Of the amount paid under 152.12 this section, the district must first allocate the amount 152.13 attributable to obligations under chapter 475. Remaining aid 152.14 may be used for the other purposes of this section. 152.15 (Effective date: Section 1 (123B.53) is effective the day 152.16 following final enactment.) 152.17 Sec. 2. Minnesota Statutes 1998, section 123B.54, is 152.18 amended to read: 152.19 123B.54 [DEBT SERVICEEQUALIZED FACILITIES APPROPRIATION.] 152.20 (a)$35,480,000 in fiscal year 1998, $38,159,000 in fiscal152.21year 1999, and $38,390,000$32,534,000 in fiscal year20002002 152.22 and each year thereafter is appropriated from the general fund 152.23 to the commissioner of children, families, and learning for 152.24 payment of debt service equalization aid under section 123B.53. 152.25 The20002002 appropriation includes$3,842,000$3,266,000 for 152.2619992001 and$34,548,000$29,268,000 for20002002. 152.27 (b) The appropriations in paragraph (a) must be reduced by 152.28 the amount of any money specifically appropriated for the same 152.29 purpose in any year from any state fund. 152.30 Sec. 3. Minnesota Statutes 1998, section 123B.57, 152.31 subdivision 1, is amended to read: 152.32 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 152.33 health and safety revenue for any fiscal year a district must 152.34 submit to the commissioner an application foraid and levy152.35 revenue by the date determined by the commissioner. The 152.36 application may be for hazardous substance removal, fire and 153.1 life safety code repairs, labor and industry regulated facility 153.2 and equipment violations, and health, safety, and environmental 153.3 management, including indoor air quality management. The 153.4 application must include a health and safety program adopted by 153.5 the school district board. The program must include the 153.6 estimated cost, per building, of the program by fiscal 153.7 year. Upon approval through the adoption of a resolution by 153.8 each of a cooperative unit's member school district board and 153.9 the approval of the department of children, families, and 153.10 learning, a school district may include its proportionate share 153.11 of the costs of health and safety projects for cooperative units 153.12 in its application. 153.13 Sec. 4. Minnesota Statutes 1998, section 123B.58, 153.14 subdivision 3, is amended to read: 153.15 Subd. 3. [LEVY AUTHORITYREVENUE.] The districtmay levy153.16 is eligible for revenue up to $300,000 under this section, as 153.17 approved by the commissioner. The approved amount may belevied153.18 received over eight or fewer years. 153.19 Sec. 5. Minnesota Statutes 1998, section 123B.58, 153.20 subdivision 4, is amended to read: 153.21 Subd. 4. [LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 153.22 Notwithstanding subdivision 3, a district that has combined or 153.23 consolidated maylevyreceive revenue up to 50 percent times 153.24 $300,000 times the number of former districts that operated on 153.25 June 30, 1991, in the area that now makes up the combined or 153.26 consolidated district. The approved amount is reduced by any 153.27 amount levied under subdivision 3 in the consolidated or 153.28 combined district or in the former districts that make up the 153.29 consolidated or combined district. Levy authority under this 153.30 subdivision expires at the same time as levy authority under 153.31 subdivision 3. 153.32 (Effective date: Section 5 (123B.58, subdivision 4) is 153.33 effective the day following final enactment.) 153.34 Sec. 6. Minnesota Statutes 1998, section 123B.59, is 153.35 amended to read: 153.36 123B.59 [ALTERNATIVE FACILITIESBONDING AND LEVYREVENUE 154.1 PROGRAM.] 154.2 Subdivision 1. [TO QUALIFY.] An independent or special 154.3 school district qualifies to participate in the alternative 154.4 facilitiesbonding and levyrevenue program if the district has: 154.5 (1) more than 66 students per grade; 154.6 (2) over 1,850,000 square feet of space; 154.7 (3) average age of building space is2015 years or older; 154.8 (4) insufficient funds from projected health and safety 154.9 revenue and capital facilities revenue to meet the requirements 154.10 for deferred maintenance, to make accessibility improvements, or 154.11 to make fire, safety, or health repairs; and 154.12 (5) a ten-year facility plan approved by the commissioner 154.13 according to subdivision 2. 154.14 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 154.15 have a ten-year facility plan approved by the commissioner that 154.16 includes an inventory of projects and costs that would be 154.17 eligible for: 154.18 (1) health and safety revenue; 154.19 (2) disabled access levy; and 154.20 (3) deferred capital expenditures and maintenance projects 154.21 necessary to prevent further erosion of facilities. 154.22 (b) The school district must: 154.23 (1) annually update the plan; 154.24 (2) biennially submit a facility maintenance plan; and 154.25 (3) indicate whether the district will issue bonds to 154.26 finance the plan orlevyannually include program revenue under 154.27 the facilities equalization program, under section 123B.53, for 154.28 the costs. 154.29 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 154.30 approval of its board and the commissioner, may issue general 154.31 obligation bonds under this section to finance approved 154.32 facilities plans. Chapter 475, except sections 475.58 and 154.33 475.59, must be complied with.The district may levy under154.34subdivision 5 for the debt service revenue.The authority to 154.35 issue bonds under this section is in addition to any bonding 154.36 authority authorized by this chapter, or other law. The amount 155.1 of bonding authority authorized under this section must be 155.2 disregarded in calculating the bonding or net debt limits of 155.3 this chapter, or any other law other than section 475.53, 155.4 subdivision 4. 155.5 Subd. 3a. [INTEGRATION REVENUE.] (a) A school district 155.6 that is participating in an interdistrict magnet school program 155.7 and qualifies for revenue under subdivision 1 may add to its 155.8 health and safety revenue and deferred maintenance revenue 155.9 amounts under subdivision 1 its proportionate share of any 155.10 health and safety costs and deferred maintenance costs 155.11 attributable to its participation in an interdistrict magnet 155.12 program. 155.13 (b) Notwithstanding subdivision 1, a school district that 155.14 is participating in an interdistrict magnet school program but 155.15 does not qualify for revenue under subdivision 1 may participate 155.16 in the alternative facilities revenue program only for the 155.17 purpose of financing its proportionate share of health and 155.18 safety and deferred maintenance costs associated with the 155.19 interdistrict magnet school and may receive revenue under 155.20 subdivision 5 for that purpose. 155.21 Subd. 4. [LEVYREVENUE PROHIBITED FOR CAPITAL PROJECTS.] A 155.22 district that participates in the alternative facilitiesbonding155.23and levyrevenue program is not eligibleto levy and cannot155.24receive aidfor revenue under sections 123B.57 and 123B.58 for 155.25 any capital projects funded under this section. A district 155.26 maylevy and receive aid for health and safetyreceive revenue 155.27 for environmental management costs and health and safety 155.28 regulatory, hazard assessment, record keeping, and maintenance 155.29 programs as defined in section123A.443123B.57, subdivision 2, 155.30 and approved by the commissioner. 155.31 Subd. 5. [LEVYREVENUE AUTHORIZED.] A district, after 155.32 local board approval, maylevyreceive revenue for costs related 155.33 to an approved facility plan as follows: 155.34 (a) if the district has indicated to the commissioner that 155.35 bonds will be issued, the district maylevyreceive revenue for 155.36 the principal and interest payments on outstanding bonds issued 156.1 according to subdivision 3 after reduction for any alternative 156.2 facilities aid receivable under subdivision 6; or 156.3 (b) if the district has indicated to the commissioner that 156.4 the plan will be funded through levy authorized under section 156.5 123B.53, subdivision 5, the district may levy according to the 156.6 schedule approved in the plan after reduction for any 156.7 alternative facilities aid receivable under subdivision 6. 156.8 Subd. 6. [ALTERNATIVE FACILITIES AID.] A district's 156.9 alternative facilities aid is the amount equal to the district's 156.10 annual debt service costs, provided that the amount does not 156.11 exceed the amount certified to be levied for those purposes for 156.12 taxes payable in 1997, or for a district that made a levy under 156.13 subdivision 5, paragraph (b), the lesser of the district's 156.14 annual levy amount, or one-sixth of the amount of levy that it 156.15 certified for that purpose for taxes payable in 1998. 156.16 Subd. 7. [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 156.17 amount not to exceed $19,700,000 for fiscal year 2000 and 156.18 $20,000,000 for fiscal year 2001 and each year thereafter is 156.19 appropriated from the general fund to the commissioner of 156.20 children, families, and learning for payment of alternative 156.21 facilities aid under subdivision 6. 156.22 (b) The appropriation in paragraph (a) must be reduced by 156.23 the amount of any money specifically appropriated for the same 156.24 purpose in any year from any state fund. 156.25 Subd. 8. [SEPARATE ACCOUNT.] A district must establish a 156.26 separate account under the uniform financial accounting and 156.27 reporting standards (UFARS) for this program. If the district's 156.28levyrevenue exceeds the necessary interest and principal 156.29 payments and noncapital health and safety costs, the district 156.30 must reserve the revenue to replace future bonding authority, 156.31 prepay bonds authorized under this program, or make payments on 156.32 principal and interest. 156.33 (Effective date: Section 6 (123B.59) is effective the day 156.34 following final enactment.) 156.35 Sec. 7. Minnesota Statutes 1998, section 123B.61, is 156.36 amended to read: 157.1 123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 157.2 The board of a district may issue general obligation 157.3 certificates of indebtedness or capital notes subject to the 157.4 district debt limits topurchase: (a) purchase vehicles, 157.5 computers, telephone systems, cable equipment, photocopy and 157.6 office equipment, technological equipment for instruction, and 157.7 other capital equipment having an expected useful life at least 157.8 as long as the terms of the certificates or 157.9 notes;and(b) purchase computer hardware and software, without 157.10 regard to its expected useful life, whether bundled with 157.11 machinery or equipment or unbundled, together with application 157.12 development services and training related to the use of the 157.13 computer; and (c) prepay special assessments. The certificates 157.14 or notes must be payable in not more than five years and must be 157.15 issued on the terms and in the manner determined by the 157.16 board. Except, certificates or notes issued to prepay special 157.17 assessments must be payable in not more than 20 years. The 157.18 certificates or notes may be issued by resolution and without 157.19 the requirement for an election. The certificates or notes are 157.20 general obligation bonds for purposes of section 126C.55. A tax 157.21 levy must be made for the payment of the principal and interest 157.22 on the certificates or notes, in accordance with section 475.61, 157.23 as in the case of bonds. The sum of the tax levies under this 157.24 section and section 123B.62 for each year must not exceed the 157.25 amount of the district's total operating capital revenue for the 157.26 year the initial debt service levies are certified. The 157.27 district's general education levy for each year must be reduced 157.28 by the sum of (1) the amount of the tax levies for debt service 157.29 certified for each year for payment of the principal and 157.30 interest on the certificates or notes as required by section 157.31 475.61, and (2) any excess amount in the debt redemption fund 157.32 used to retire certificates or notes issued after April 1, 1997, 157.33 other than amounts used to pay capitalized interest. A district 157.34 using an excess amount in the debt redemption fund to retire the 157.35 certificates or notes shall report the amount used for this 157.36 purpose to the commissioner by July 15 of the following fiscal 158.1 year. A district having an outstanding capital loan under 158.2 section 126C.69 or an outstanding debt service loan under 158.3 section 126C.68 must not use an excess amount in the debt 158.4 redemption fund to retire the certificates or notes. 158.5 (Effective date: Section 7 (123B.61) is effective the day 158.6 following final enactment.) 158.7 Sec. 8. Minnesota Statutes 1998, section 123B.63, 158.8 subdivision 3, is amended to read: 158.9 Subd. 3. [FACILITIESDOWN PAYMENT LEVYREVENUE 158.10 REFERENDUM.] A district maylevy the local tax ratereceive 158.11 revenue under the facilities equalization program for the 158.12 purposes of financing a school construction project or to pay 158.13 for the lease on a new school building used primarily for 158.14 regular kindergarten, elementary, or secondary instruction if 158.15 authorization is approved by a majority of the electors voting 158.16 on the question to provide funds fora down payment foran 158.17 approved project. The election must take place no more than 158.18 five years before the estimated date of commencement of the 158.19 project. The referendum must be held on a date set by the 158.20 board. A referendum for a project not receiving a positive 158.21 review and comment by the commissioner under section 123B.71 158.22 must be approved by at least 60 percent of the voters voting on 158.23 the question at the election. The referendum may be called by 158.24 the school board and may be held: 158.25 (1) separately, before an election for the issuance of 158.26 obligations for the project under chapter 475; or 158.27 (2) in conjunction with an election for the issuance of 158.28 obligations for the project under chapter 475; or 158.29 (3) notwithstanding section 475.59, as a conjunctive 158.30 question authorizing both thedown payment levyrevenue and the 158.31 issuance of obligations for the project under chapter 475. Any 158.32 obligations authorized for a project may be issued within five 158.33 years of the date of the election. 158.34 The ballot must provide a general description of the 158.35 proposed project, state the estimated total cost of the project, 158.36 state whether the project has received a positive or 159.1negativeunfavorable review and comment from the commissioner, 159.2 state the maximum amount of thedown paymentequalized facility 159.3 levy as a percentage of net tax capacity, state the amount that 159.4 will be raised by that local tax rate in the first year it is to 159.5 be levied, and state the maximum number of years that the levy 159.6 authorization will apply. 159.7 The ballot must contain a textual portion with the 159.8 information required in this section and a question stating 159.9 substantially the following: 159.10 "Shall thedown paymentequalized facility levy proposed by 159.11 the board of .......... School District No. .......... be 159.12 approved?" 159.13 If approved, the amount provided by the approved local tax 159.14 rate applied to the net tax capacity for the year preceding the 159.15 year the levy is certified may be certified for the number of 159.16 years approved. 159.17 In the event a conjunctive question proposes to authorize 159.18 both thedown paymentequalized facilities levy, under section 159.19 123B.53, and the issuance of obligations for the project, 159.20 appropriate language authorizing the issuance of obligations 159.21 must also be included in the question. 159.22 The district must notify the commissioner of the results of 159.23 the referendum. 159.24 (Effective date: Section 8 (123B.63, subdivision 3) is 159.25 effective the day following final enactment.) 159.26 Sec. 9. Minnesota Statutes 1998, section 123B.63, 159.27 subdivision 4, is amended to read: 159.28 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUND LEVY 159.29 PROCEEDS.] (a) For the purpose of a school construction project, 159.30 any fundsremaining in the down payment accountthat are not 159.31 applied to the payment of the costs of the approved project 159.32 before its final completion must be transferred to the 159.33 district's debt redemption fund. 159.34 (b) For the purpose of a leased building, any funds that 159.35 are not applied to the payment of the lease at the termination 159.36 of the lease must be transferred to the district's debt 160.1 redemption fund. 160.2 (Effective date: Section 9 (123B.63, subdivision 4) is 160.3 effective the day following final enactment.) 160.4 Sec. 10. Minnesota Statutes 1998, section 124D.88, 160.5 subdivision 3, is amended to read: 160.6 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 160.7 school districts that meets the criteria required under 160.8 paragraph (b)(i) may apply for a magnet school grant in an 160.9 amount not to exceed$15,000,000$20,800,000 for the approved 160.10 costs or expansion of a magnet school facility. 160.11 (b)(i) Any group of districts that submits an application 160.12 for a grant shall submit a proposal to the commissioner for 160.13 review and comment under section 123B.71, and the commissioner 160.14 shall prepare a review and comment on the proposed magnet school 160.15 facility, regardless of the amount of the capital expenditure 160.16 required to design, acquire, construct, remodel, improve, 160.17 furnish, or equip the facility. The commissioner must not 160.18 approve an application for a magnet school grant for any 160.19 facility unless the facility receives a favorable review and 160.20 comment under section 123B.71 and the participating districts: 160.21 (1) establish a joint powers board under section 471.59 to 160.22 represent all participating districts and govern the magnet 160.23 school facility; 160.24 (2) design the planned magnet school facility to meet the 160.25 applicable requirements contained in Minnesota Rules, chapter 160.26 3535; 160.27 (3) submit a statement of need, including reasons why the 160.28 magnet school will facilitate integration and improve learning; 160.29 (4) prepare an educational plan that includes input from 160.30 both community and professional staff; and 160.31 (5) develop an education program that will improve learning 160.32 opportunities for students attending the magnet school. 160.33 (ii) The districts may develop a plan that permits social 160.34 service, health, and other programs serving students and 160.35 community residents to be located within the magnet school 160.36 facility. The commissioner shall consider this plan when 161.1 preparing a review and comment on the proposed facility. 161.2 (c) When two or more districts enter into an agreement 161.3 establishing a joint powers board to govern the magnet school 161.4 facility, all member districts shall have the same powers. 161.5 (d) A joint powers board of participating school districts 161.6 established under paragraphs (b) and (c) that intends to apply 161.7 for a grant must adopt a resolution stating the costs of the 161.8 proposed project, the purpose for which the debt is to be 161.9 incurred, and an estimate of the dates when the contracts for 161.10 the proposed project will be completed. A copy of the 161.11 resolution must accompany any application for a state grant 161.12 under this section. 161.13 (e)(i) The commissioner shall examine and consider all 161.14 grant applications. If the commissioner finds that any joint 161.15 powers district is not a qualified grant applicant, the 161.16 commissioner shall promptly notify that joint powers board. The 161.17 commissioner shall make awards to no more than two qualified 161.18 applicants whose applications have been on file with the 161.19 commissioner more than 30 days. 161.20 (ii) A grant award is subject to verification by the joint 161.21 powers board under paragraph (f). A grant award must not be 161.22 made until the participating districts determine the site of the 161.23 magnet school facility. If the total amount of the approved 161.24 applications exceeds the amount of grant funding that is or can 161.25 be made available, the commissioner shall allot the available 161.26 amount equally between the approved applicant districts. The 161.27 commissioner shall promptly certify to each qualified joint 161.28 powers board the amount, if any, of the grant awarded to it. 161.29 (f) Each grant must be evidenced by a contract between the 161.30 joint powers board and the state acting through the 161.31 commissioner. The contract obligates the state to pay to the 161.32 joint powers board an amount computed according to paragraph 161.33 (e)(ii) and a schedule, and terms and conditions acceptable to 161.34 the commissioner of finance. 161.35 (Effective date: Section 10 (124D.88, subdivision 3) is 161.36 effective the day following final enactment.) 162.1 Sec. 11. Minnesota Statutes 1998, section 125B.20, is 162.2 amended to read: 162.3 125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 162.4 COORDINATION.] 162.5 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 162.6 developing a statewide school district telecommunications 162.7 network is to expand the availability of a broad range of 162.8 courses and degrees to students throughout the state, to share 162.9 information resources to improve access, quality, and 162.10 efficiency, to improve learning, and distance cooperative 162.11 learning opportunities, and to promote the exchange of ideas 162.12 among students, parents, teachers, media generalists, 162.13 librarians, and the public. In addition, through the 162.14 development of this statewide telecommunications network 162.15 emphasizing cost-effective, competitive connections, all 162.16 Minnesotans will benefit by enhancing access to 162.17 telecommunications technology throughout the state. Network 162.18 connections for school districts and public librarieswill be162.19 are coordinated and fully integrated into the existing state 162.20 telecommunications and interactive television networks to 162.21 achieve comprehensive and efficient interconnectivity of school 162.22 districts and libraries to higher education institutions, state 162.23 agencies, other governmental units, agencies, and institutions 162.24 throughout Minnesota. A school district may apply to the 162.25 commissioner for a grant under subdivision 2, and a regional 162.26 public library may apply under subdivision 3. The Minnesota 162.27 education telecommunication council established in Laws 1995, 162.28 First Special Session chapter 3, article 12, section 7, shall 162.29 establish priorities for awarding grants, making grant awards, 162.30 and being responsible for the coordination of networks. 162.31 Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 162.32 Priority will be given to a school district that has not 162.33 received access to interactive video, data connection, or both 162.34 under the telecommunications access grant program. Districts 162.35 may apply for a grant under this subdivision to: (1) establish 162.36 connections among school districts, and between school districts 163.1 and the state information infrastructure administered by the 163.2 department of administration under section 16B.465; or (2) if 163.3 such a connection meeting minimum electronic connectivity 163.4 standards is already established, enhance telecommunications 163.5 capacity for a school district.The minimum standards of163.6capacity are a 56 kilobyte data line and 768 kilobyte ITV163.7connection, subject to change based on the recommendations by163.8the Minnesota education telecommunications council.A district 163.9 may submit a grant application for interactive television with 163.10 higher capacity connections in order to maintain multiple 163.11 simultaneous connections. To ensure coordination among school 163.12 districts, a school district must submit its grant application 163.13 to the council throughan organization that coordinates the163.14applications and connections of at least ten school districts or163.15through an existing technology cooperativethe 163.16 telecommunications access grant cluster of which the district is 163.17 a member. 163.18 (b) The application must, at a minimum, contain information 163.19 to document for each applicant school district the following: 163.20 (1) that the proposed connection meets the minimum 163.21 standards and employs an open network architecture that will 163.22 ensure interconnectivity and interoperability with other 163.23 education institutions and libraries; 163.24 (2) that the proposed connection and system will be 163.25 connected to the state information infrastructure through the 163.26 department of administration under section 16B.465and that a163.27network service and management agreement is in place; 163.28 (3) that the proposed connection and system will be 163.29 connected to the higher education telecommunication network and 163.30 that a governance agreement has been adopted which includes 163.31 agreements between the school district system, a higher 163.32 education regional council, libraries, and coordinating 163.33 entities; 163.34 (4) the telecommunication vendor selected to provide 163.35 service from the district to a state information infrastructure 163.36 hub or to a more cost-effective connection point to the state 164.1 information infrastructure; and 164.2 (5) other information, as determined by the commissioner in 164.3 consultation with the education telecommunications council, to 164.4 ensure that connections are coordinated, meet state standards 164.5 and are cost-effective, and that service is provided in an 164.6 efficient and cost-effective manner. 164.7 (c) A school district may include, in its grant 164.8 application, telecommunications access for collaboration with 164.9 nonprofit arts organizations for the purpose of educational 164.10 programs, or access for a secondary media center that: (1) is a 164.11 member of a multitype library system; (2) is open during periods 164.12 of the year when classroom instruction is occurring; and (3) has 164.13 licensed school media staff on site. 164.14 (d) The Minnesota education telecommunications council 164.15 shall award grants and the funds shall be dispersed by the 164.16 commissioner.The highest priority for these grants shall be to164.17bring school districts up to the minimum connectivity standards.164.18A grant to enhance telecommunications capacity beyond the164.19minimum connectivity standards shall be no more than 75 percent164.20of the maximum grant under this subdivision. Grant applications164.21for minimum connection and enhanced telecommunications capacity164.22grants must be submitted to the commissioner by a coordinating164.23organization including, but not limited to, service cooperatives164.24and education districts.Grant applications must be submitted 164.25 to the commissioner by a telecommunications access grant cluster 164.26 organization. For the purposes of the grant, a school district 164.27 may include a charter school under section 124D.10, or the 164.28 Faribault academies. Based on the award made by the council, 164.29 all grants under this subdivision shall be paid by the 164.30 commissioner directly to a school district (unless this 164.31 application requests that the funds be paid to the coordinating 164.32 agency). Nonpublic schools as defined in section 237.065, 164.33 subdivision 2, located within the district may access the 164.34 network. The nonpublic school is responsible for actual costs 164.35 for connection from the school to the access site. 164.36 (e) Money awarded under this section may be used only for 165.1 the purposes explicitly stated in the grant application. 165.2 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 165.3 regional public library system may apply for a telecommunication 165.4 access grant. Priority will be given to public libraries that 165.5 have not received access to data connection under the 165.6 telecommunications access grant program. The grant must be used 165.7 to create or expand the capacity of electronic data access and 165.8 connect the library system with the state information 165.9 infrastructure administered by the department of administration 165.10 under section 16B.465.Connections must meet minimum system165.11standards of a 56 kilobyte data line and 768 kilobyte ITV165.12connection.To be eligible for a telecommunications access 165.13 grant, a regional public library system must: (1)meet the 165.14 level of local support required under section 134.34; and (2) be165.15open at least 20 hours per week. 165.16 (b) Any grant award under this subdivision may not be used 165.17 to substitute for any existing local funds allocated to provide 165.18 electronic access, or equipment for library staff or the public, 165.19 or local funds previously dedicated to other library operations. 165.20 (c) An application for a regional public library 165.21 telecommunications access grant must, at a minimum, contain 165.22 information to document the following: 165.23 (1) that the connection meets the minimum standards and 165.24 employs an open network architecture that will ensure 165.25 interconnectivity and interoperability with other libraries and 165.26 the educational system; 165.27 (2) that the connection is being established through the 165.28 most cost-effective means and that the public library has 165.29 explored and coordinated connections through school districts or 165.30 other governmental agencies; 165.31 (3) that the proposed connection and system will be 165.32 connected to the state information infrastructure through the 165.33 department of administration under section 16B.465and that a165.34network service and management agreement is in place; 165.35 (4) that the proposed connection and system will be 165.36 connected to the higher education and to the school district 166.1 telecommunication networks subject to a governance agreement 166.2 with one or more school districts and a higher education 166.3 regional council specifying how the system will be coordinated; 166.4 (5) the telecommunication vendor selected to provide 166.5 service from the library to a state information infrastructure 166.6 hub or through a more cost-effective connection point to the 166.7 state information infrastructure; and 166.8 (6) other information, as determined by the commissioner, 166.9 to ensure that connections are coordinated, meet state 166.10 standards, are cost-effective, and that service is provided in 166.11 an efficient and cost-effective manner so that libraries 166.12 throughout the state are connected in as seamless a manner as 166.13 technically possible. 166.14 Subd. 4. [AWARD OF GRANTS.] The council shall develop 166.15 application forms and procedures forschool district minimum166.16connectivity grants, enhanced telecommunications grants, and166.17regional librarytelecommunication access grants. The council 166.18 shall select the grant recipient and shall promptly notify any 166.19 applicant that is found not to be qualified. The commissioner 166.20 shall make the grant payments directly to the school district or 166.21 regional library system. At the request of the district or 166.22 regional library system, the commissioner may make the grant 166.23 payment directly to the coordinating organization.If166.24appropriations are insufficient to fund all applications, the166.25commissioner shall first fully fund the minimum connectivity166.26grants. Unsuccessful applicants may reapply for a grant.166.27 Subd. 5. [E-RATES.] The telecommunication access grant 166.28 clusters are required to file e-rate applications for 166.29 telecommunication access grant-related expenditures on behalf of 166.30 grant participants in their clusters. Discounts received on 166.31 telecommunication access grant expenditures shall be used to 166.32 offset or reduce operations funding provided by the state. 166.33 Sec. 12. Minnesota Statutes 1998, section 126C.40, 166.34 subdivision 1, is amended to read: 166.35 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 166.36 district finds it economically advantageous to rent or lease a 167.1 building or land for any instructional purposes or for school 167.2 storage or furniture repair, and it determines that the 167.3 operating capital revenue authorized under section 126C.10, 167.4 subdivision 13, is insufficient for this purpose, it may apply 167.5 to the commissioner for permission tomake an additional capital167.6expenditure levyincrease its equalized facilities revenue under 167.7 section 123B.53, subdivision 5, for this purpose. An 167.8 application for permission tolevy under this subdivision167.9 increase the equalized facilities revenue must contain financial 167.10 justification for the proposedlevyincrease, the terms and 167.11 conditions of the proposed lease, and a description of the space 167.12 to be leased and its proposed use. 167.13 (b) The criteria for approval of applications to levy under 167.14 this subdivision must include: the reasonableness of the price, 167.15 the appropriateness of the space to the proposed activity, the 167.16 feasibility of transporting pupils to the leased building or 167.17 land, conformity of the lease to the laws and rules of the state 167.18 of Minnesota, and the appropriateness of the proposed lease to 167.19 the space needs and the financial condition of the district. 167.20 The commissioner must not authorizea levyrevenue under this 167.21 subdivision in an amount greater than the cost to the district 167.22 of renting or leasing a building or land for approved purposes. 167.23 The proceeds of this levy must not be used for custodial or 167.24 other maintenance services. A district may notlevyreceive 167.25 revenue under this subdivision for the purpose of leasing or 167.26 renting a district-owned building or site to itself. 167.27 (c) For agreements finalized after July 1, 1997, a district 167.28 may notlevyreceive revenue under this subdivision for the 167.29 purpose of leasing: (1) a newly constructed building used 167.30 primarily for regular kindergarten, elementary, or secondary 167.31 instruction; or (2) a newly constructed building addition or 167.32 additions used primarily for regular kindergarten, elementary, 167.33 or secondary instruction that contains more than 20 percent of 167.34 the square footage of the previously existing building. 167.35 (d) The totallevyrevenue under this subdivision for a 167.36 district for any year must not exceed $100 times theresident168.1 adjusted pupil units for the fiscal year to which the levy is 168.2 attributable. 168.3 (e) For agreements for which a review and comment have been 168.4 submitted to the department of children, families, and learning 168.5 after April 1, 1998, the term "instructional purpose" as used in 168.6 this subdivision excludes expenditures on stadiums. 168.7 (Effective date: Section 12 (126C.40, subdivision 1) is 168.8 effective the day following final enactment.) 168.9 Sec. 13. Minnesota Statutes 1998, section 126C.40, 168.10 subdivision 2, is amended to read: 168.11 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 168.12 A district mayannually levyincrease the amount of its 168.13 equalized facilities revenue needed to make payments required by 168.14 a lease purchase agreement, installment purchase agreement, or 168.15 other deferred payment agreement authorized by Minnesota 168.16 Statutes 1989 Supplement, section 465.71, if: 168.17 (1) the agreement was approved by the commissioner before 168.18 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 168.19 section 275.125, subdivision 11d; or 168.20 (2) the district levied in 1989 for the payments. 168.21 (Effective date: Section 13 (126C.40, subdivision 2) is 168.22 effective the day following final enactment.) 168.23 Sec. 14. Minnesota Statutes 1998, section 126C.40, 168.24 subdivision 3, is amended to read: 168.25 Subd. 3. [COOPERATING DISTRICTS.] A district that has an 168.26 agreement according to section 123A.30 or 123A.32 maylevy168.27 increase its equalized facilities revenue under section 123B.53, 168.28 subdivision 5, for the repair costs, as approved by the 168.29 department of a building located in another district that is a 168.30 party to the agreement. 168.31 (Effective date: Section 14 (126C.40, subdivision 3) is 168.32 effective the day following final enactment.) 168.33 Sec. 15. Minnesota Statutes 1998, section 126C.40, 168.34 subdivision 4, is amended to read: 168.35 Subd. 4. [INTERACTIVE TELEVISION.] (a) A district with its 168.36 central administrative office located within economic 169.1 development region one, two, three, four, five, six, seven, 169.2 eight, nine, and ten may apply to the commissioner for ITV 169.3 revenue up to the greater of.5.6 percent of the adjusted net 169.4 tax capacity of the district or $25,000. Eligible interactive 169.5 television expenditures include the construction, maintenance, 169.6 and lease costs of an interactive television system for 169.7 instructional purposes. An eligible school district that has 169.8 completed the construction of its interactive television system 169.9 may also purchase computer hardware and software used primarily 169.10 for instructional purposes and access to the Internet provided 169.11 that its total expenditures for interactive television 169.12 maintenance and lease costs and for computer hardware and 169.13 software under this subdivision do not exceed its interactive 169.14 television revenue for fiscal year 1998. The approval by the 169.15 commissioner and the application procedures set forth in 169.16 subdivision 1 shall apply to the revenue in this subdivision. 169.17 In granting the approval, the commissioner shall consider 169.18 whether the district is maximizing efficiency through peak use 169.19 and off-peak use pricing structures. 169.20 (b) To obtain ITV revenue, a district may levy an amount 169.21 not to exceed the district's ITV revenue times the lesser of one 169.22 or the ratio of: 169.23 (1) the quotient derived by dividing the adjusted net tax 169.24 capacity of the district for the year before the year the levy 169.25 is certified by theresidentadjusted pupil units in the 169.26 district for the year to which the levy is attributable; to 169.27 (2)$10,000$8,404. 169.28 (c) A district's ITV aid is the difference between its ITV 169.29 revenue and the ITV levy. 169.30 (d) The revenue in the first year after reorganization for 169.31 a district that has reorganized under sections 123A.35 to 169.32 123A.41, 123A.46, or 123A.48 shall be the greater of: 169.33 (1) the revenue computed for the reorganized district under 169.34 paragraph (a), or 169.35 (2)(i) for two districts that reorganized, 75 percent of 169.36 the revenue computed as if the districts involved in the 170.1 reorganization were separate, or 170.2 (ii) for three or more districts that reorganized, 50 170.3 percent of the revenue computed as if the districts involved in 170.4 the reorganization were separate. 170.5 (e) The revenue in paragraph (d) is increased by the 170.6 difference between the initial revenue and ITV lease costs for 170.7 leases that had been entered into by the preexisting districts 170.8 on the effective date of the consolidation or combination and 170.9 with a term not exceeding ten years. This increased revenue is 170.10 only available for the remaining term of the lease. However, in 170.11 no case shall the revenue exceed the amount available had the 170.12 preexisting districts received revenue separately. 170.13 (f) Effective for fiscal year 2000, the revenue under this 170.14 section shall be 75 percent of the amount determined in 170.15 paragraph (a); for fiscal year 2001, 50 percent of the amount in 170.16 paragraph (a); and for fiscal year 2002, 25 percent of the 170.17 amount in paragraph (a). 170.18 (g) Thissectionsubdivision expires effective for revenue 170.19 for fiscal year 2003, or when leases in existence on the170.20effective date of Laws 1997, First Special Session chapter 4,170.21expire. 170.22 (Effective date: Section 15 (126C.40, subdivision 4) is 170.23 effective for revenue for fiscal year 2000 and later.) 170.24 Sec. 16. Minnesota Statutes 1998, section 126C.40, 170.25 subdivision 6, is amended to read: 170.26 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 170.27 application to, and approval by, the commissioner in accordance 170.28 with the procedures and limits in subdivision 1, paragraphs (a) 170.29 and (b), a district, as defined in this subdivision, may: 170.30 (1) purchase real or personal property under an installment 170.31 contract or may lease real or personal property with an option 170.32 to purchase under a lease purchase agreement, by which 170.33 installment contract or lease purchase agreement title is kept 170.34 by the seller or vendor or assigned to a third party as security 170.35 for the purchase price, including interest, if any; and 170.36 (2) annuallylevyincrease its equalized facilities revenue 171.1 under section 123B.53, subdivision 5, by the amounts necessary 171.2 to pay the district's obligations under the installment contract 171.3 or lease purchase agreement. 171.4 (b) The obligation created by the installment contract or 171.5 the lease purchase agreement must not be included in the 171.6 calculation of net debt for purposes of section 475.53, and does 171.7 not constitute debt under other law. An election is not 171.8 required in connection with the execution of the installment 171.9 contract or the lease purchase agreement. 171.10 (c) The proceeds of thelevyequalized facilities revenue 171.11 increase authorized by this subdivision must not be used to 171.12 acquire a facility to be primarily used for athletic or school 171.13 administration purposes. 171.14 (d) For the purposes of this subdivision, "district" means: 171.15 (1) a school district required to have a comprehensive plan 171.16 for the elimination of segregation whose plan has been 171.17 determined by the commissioner to be in compliance with the 171.18 state board of education rules relating to equality of 171.19 educational opportunity and school desegregation; or 171.20 (2) a school district that participates in a joint program 171.21 for interdistrict desegregation with a district defined in 171.22 clause (1) if the facility acquired under this subdivision is to 171.23 be primarily used for the joint program. 171.24 (e) Notwithstanding subdivision 1, the prohibition against 171.25a levy bya districtto leasereceiving revenue for the purpose 171.26 of leasing orrentrenting a district-owned building to itself 171.27 does not apply toleviesrevenues otherwise authorized by this 171.28 subdivision. 171.29 (f) For the purposes of this subdivision, any references in 171.30 subdivision 1 to building or land shall include personal 171.31 property. 171.32 (Effective date: Section 16 (126C.40, subdivision 6) is 171.33 effective the day following final enactment.) 171.34 Sec. 17. Minnesota Statutes 1998, section 126C.55, is 171.35 amended by adding a subdivision to read: 171.36 Subd. 10. [CONTINUING DISCLOSURE AGREEMENTS.] The 172.1 commissioner of finance may enter into written agreements or 172.2 contracts relating to the continuing disclosure of information 172.3 necessary to facilitate the issuance of debt obligations by 172.4 school districts in accordance with federal securities laws, 172.5 rules, and regulations, including securities and exchange 172.6 commission rules and regulations, section 240.15c2-12. Such 172.7 agreements or contracts may be in any form deemed reasonable and 172.8 in the best interests of the state by the commissioner of 172.9 finance. 172.10 (Effective date: Section 17 (126C.55, subdivision 10) is 172.11 effective the day following final enactment.) 172.12 Sec. 18. Minnesota Statutes 1998, section 126C.63, 172.13 subdivision 8, is amended to read: 172.14 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 172.15 effort debt service levy" means the lesser of: 172.16 (1) a levy in whichever of the following amounts is 172.17 applicable: 172.18 (a) in any district receiving a debt service loan for a 172.19 debt service levy payable in 1991 and thereafter, or granted a 172.20 capital loan after January 1, 1990, a levy in a total dollar 172.21 amount computed at a rate of2024 percent of adjusted net tax 172.22 capacity for taxes payable in 1991 and thereafter; 172.23 (b) in any district granted a debt service loan after July 172.24 31, 1981, or granted a capital loan which is approved after July 172.25 31, 1981, a levy in a total dollar amount computed as atax rate172.26of 13.08 percent on the adjusted gross tax capacity for taxes172.27payable in 1990 or atax rate of18.4221.92 percent on the 172.28 adjusted net tax capacity for taxes payable in 1991 and 172.29 thereafter; 172.30(c) in any district granted a debt service loan before172.31August 1, 1981, or granted a capital loan which was approved172.32before August 1, 1981, a levy in a total dollar amount computed172.33as a tax rate of 12.26 percent on the adjusted gross tax172.34capacity for taxes payable in 1990 or a tax rate of 17.17172.35percent on the adjusted net tax capacity for taxes payable in172.361991 and thereafter, until and unless the district receives an173.1additional loan;or 173.2 (2) a levyin whichever of the following amounts is173.3applicable:173.4(a) in any district which received a debt service or173.5capital loan from the state before January 1, 1965, a levy in a173.6total dollar amount computed as 4.10 mills on the market value173.7in each year, unless the district applies or has applied for an173.8additional loan subsequent to January 1, 1965, or issues or has173.9issued bonds on the public market, other than bonds refunding173.10state loans, subsequent to January 1, 1967;173.11(b) in any district granted a debt service or capital loan173.12between January 1, 1965, and July 1, 1969, a levy in a total173.13dollar amount computed as 5-1/2 mills on the market value in173.14each year, until and unless the district receives an additional173.15loan;173.16(c) in any district granted a debt service or capital loan173.17between July 1, 1969, and July 1, 1975, a levy in a total dollar173.18amount computed as 6.3 mills on market value in each year until173.19and unless the district has received an additional loan;173.20(d)in any district for which a capital loan was approved 173.21 prior to August 1, 1981, a levy in a total dollar amount equal 173.22 to the sum of the amount of the required debt service levy and 173.23 an amount which when levied annually will in the opinion of the 173.24 commissioner be sufficient to retire the remaining interest and 173.25 principal on any outstanding loans from the state within 30 173.26 years of the original date when the capital loan was granted. 173.27 The board in any district affected by the provisions of 173.28 clause (2)(d)may elect instead to determine the amount of its 173.29 levy according to the provisions of clause (1). If a district's 173.30 capital loan is not paid within 30 years because it elects to 173.31 determine the amount of its levy according to the provisions of 173.32 clause (2)(d), the liability of the district for the amount of 173.33 the difference between the amount it levied under clause (2)(d)173.34 and the amount it would have levied under clause (1), and for 173.35 interest on the amount of that difference, must not be satisfied 173.36 and discharged pursuant to Minnesota Statutes 1988, or an 174.1 earlier edition of Minnesota Statutes if applicable, section 174.2 124.43, subdivision 4. 174.3 (Effective date: Section 18 (126C.63, subdivision 8) is 174.4 effective for revenue for fiscal year 2000 and later.) 174.5 Sec. 19. Minnesota Statutes 1998, section 126C.69, 174.6 subdivision 2, is amended to read: 174.7 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 174.8 1,19921999, a district is not eligible for a capital loan 174.9 unless the district's estimated net debt tax rate as computed by 174.10 the commissioner after debt service equalization aid would be 174.11 more than2024 percent of adjusted net tax capacity. The 174.12 estimate must assume a 20-year maturity schedule for new debt. 174.13 (Effective date: Section 19 (126C.69, subdivision 2) is 174.14 effective for revenue for fiscal year 2000 and later.) 174.15 Sec. 20. Minnesota Statutes 1998, section 126C.69, 174.16 subdivision 9, is amended to read: 174.17 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 174.18 recommended for approval for a district exceeding an amount 174.19 computed as follows: 174.20 (1) the amount requested by the district under subdivision 174.21 6; 174.22 (2) plus the aggregate principal amount of general 174.23 obligation bonds of the district outstanding on June 30 of the 174.24 year following the year the application was received, not 174.25 exceeding the limitation on net debt of the district in section 174.26 475.53, subdivision 4, or305363 percent of its adjusted net 174.27 tax capacity as most recently determined, whichever is less; 174.28 (3) less the maximum net debt permissible for the district 174.29 on December 1 of the year the application is received, under the 174.30 limitation in section 475.53, subdivision 4, or305363 percent 174.31 of its adjusted net tax capacity as most recently determined, 174.32 whichever is less; 174.33 (4) less any amount by which the amount voted exceeds the 174.34 total cost of the facilities for which the loan is granted. 174.35 (b) The loan may be approved in an amount computed as 174.36 provided in paragraph (a), clauses (1) to (3), subject to later 175.1 reduction according to paragraph (a), clause (4). 175.2 Sec. 21. Minnesota Statutes 1998, section 126C.69, 175.3 subdivision 15, is amended to read: 175.4 Subd. 15. [BOND SALE LIMITATIONS.] A district having an 175.5 outstanding state loan must not issue and sell any bonds on the 175.6 public market, except to refund state loans, unless it agrees to 175.7 make the maximum effort debt service levy in each later year at 175.8 the higher rate provided in section 126C.63, subdivision 8, and 175.9 unless it schedules the maturities of the bonds according to 175.10 section 475.54, subdivision 2. A district that refunds bonds at 175.11 a lower interest rate may continue to make the maximum effort 175.12 debt service levy in each later year at the current rate 175.13 provided in section 126C.63, subdivision 8, if the district can 175.14 demonstrate to the commissioner's satisfaction that the 175.15 district's repayments of the state loan will not be reduced 175.16 below the previous year's level. The district must report each 175.17 sale to the commissioner. 175.18 After a district's capital loan has been outstanding for20175.19 30 years, the district must not issue bonds on the public market 175.20 except to refund the loan. 175.21 Sec. 22. Laws 1995, First Special Session chapter 3, 175.22 article 12, section 7, as amended by Laws 1997, First Special 175.23 Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 175.24 section 4, and Laws 1998, chapter 359, section 20, is amended to 175.25 read: 175.26 Sec. 7. [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 175.27 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 175.28 of the Minnesota education telecommunications council 175.29 established in Laws 1993, First Special Session chapter 2, is 175.30 expanded to include representatives of elementary and secondary 175.31 education. The membership shall consist of three 175.32 representatives from the University of Minnesota; three 175.33 representatives of the board of trustees for Minnesota state 175.34 colleges and universities; one representative of the higher 175.35 education services offices; one representative appointed by the 175.36 private college council; one representative selected by the 176.1 commissioner of administration; eight representatives selected 176.2 by the commissioner of children, families, and learning, at 176.3 least one of which must come from each of the six higher 176.4 education telecommunication regions; a representative from the 176.5 office of technology; two members each from the senate and the 176.6 house of representatives selected by the subcommittee on 176.7 committees of the committee on rules and administration of the 176.8 senate and the speaker of the house, one member from each body 176.9 must be a member of the minority party; and three 176.10 representatives of libraries, one representing regional public 176.11 libraries, one representing multitype libraries, and one 176.12 representing community libraries, selected by the governor. The 176.13 council shall: 176.14 (1) develop a statewide vision and plans for the use of 176.15 distance learning technologies and provide leadership in 176.16 implementing the use of such technologies; 176.17 (2)recommend to the commissioner and the legislature by176.18December 15, 1996, a plan for long-term governance and a176.19proposed structure for statewide and regional176.20telecommunications;176.21(3)recommend educational policy relating to 176.22 telecommunications; 176.23(4)(3) determine priorities for use; 176.24(5)(4) oversee coordination of networks for post-secondary 176.25 campuses,K-12kindergarten through grade 12 education, and 176.26 regional and community libraries; 176.27(6)(5) review application for telecommunications access 176.28 grants under Minnesota Statutes, section124C.74125B.20, and 176.29 recommend to the department grants for funding; 176.30(7)(6) determine priorities for grant funding proposals; 176.31 and 176.32(8)(7) work with the information policy office to ensure 176.33 consistency of the operation of the learning network with 176.34 standards of an open system architecture. 176.35 The council shall consult with representatives of the 176.36 telecommunication industry in implementing this section. 177.1 Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District 177.2 organizations that coordinate applications for telecommunication 177.3 access grants are encouraged to become members of the regional 177.4 higher education telecommunication council in their area. 177.5 Subd. 3. [CRITERIA.] In addition to responsibilities of 177.6 the council under Laws 1993, First Special Session chapter 2, as 177.7 amended, the telecommunications council shall evaluate grant 177.8 applications under Minnesota Statutes, section 124C.74 and 177.9 applications from district organizations using the following 177.10 criteria: 177.11 (1) evidence of cooperative arrangements with other 177.12 post-secondary institutions, school districts, and community and 177.13 regional libraries in the geographic region; 177.14 (2) plans for shared classes and programs; 177.15 (3) avoidance of network duplication; 177.16 (4) evidence of efficiencies to be achieved in delivery of 177.17 instruction due to use of telecommunications; 177.18 (5) a plan for development of a list of all courses 177.19 available in the region for delivery at a distance; 177.20 (6) a plan for coordinating and scheduling courses; and 177.21 (7) a plan for evaluation of costs, access, and outcomes. 177.22 Sec. 23. Laws 1997, First Special Session chapter 4, 177.23 article 9, section 13, is amended to read: 177.24 Sec. 13. [REPEALER.] 177.25(a) Minnesota Statutes 1996, section 124C.74, is repealed177.26effective July 1, 1999.177.27(b)Minnesota Statutes 1996, section 134.46, is repealed. 177.28 (Effective date: Section 23 (Laws 1997, First Special 177.29 Session chapter 4, article 9, section 13) is effective June 30, 177.30 1999.) 177.31 Sec. 24. Laws 1998, chapter 404, section 5, subdivision 5, 177.32 is amended to read: 177.33 Subd. 5. Metropolitan Magnet Schools 22,200,000 177.34 For awarding metropolitan magnet school 177.35 grants to groups of qualified 177.36 metropolitan school districts under 177.37 Minnesota Statutes, section 124C.498. 178.1 $1,900,000 is for the completion of the 178.2 Downtown Integration magnet school in 178.3 Minneapolis. 178.4 $3,800,000 is for planning, design, 178.5 acquisition of land, architectural 178.6 fees, and engineering fees for the East 178.7 Metropolitan Integration magnet school 178.8 in the East Metropolitan area. Of that 178.9 amount, $2,800,000 is for land 178.10 acquisition and site development. 178.11 $14,500,000 is for the construction of 178.12 the Metropolitan Integration magnet 178.13 school in Robbinsdale. 178.14 $2,000,000 is for the Southwest 178.15 Metropolitan Integration magnet school 178.16 in Edina. 178.17 (Effective date: Section 24 (Laws 1998, chapter 404, 178.18 section 5, subdivision 5) is effective the day following final 178.19 enactment.) 178.20 Sec. 25. [MCGREGOR LEVY.] 178.21 Beginning with taxes payable in 2000, independent school 178.22 district No. 4, McGregor, may levy $32,000 each year for eight 178.23 years for the amount of energy improvements that the district 178.24 made with the intention of complying with Minnesota Statutes, 178.25 section 216C.37. 178.26 Sec. 26. [HEALTH AND SAFETY; PROCTOR.] 178.27 Notwithstanding any law to the contrary, independent school 178.28 district No. 704, Proctor, may include in its health and safety 178.29 program the amounts necessary to make health and safety 178.30 improvements to an ice arena located within the district 178.31 boundaries in order for the district to use the facility to meet 178.32 the district's curriculum needs under the state graduation 178.33 rule. The district must attempt to renegotiate its lease 178.34 agreement with the county that operates the arena before it is 178.35 eligible for health and safety revenue under this section. The 178.36 total amount of revenue approved for this purpose shall not 178.37 exceed $150,000. 178.38 Sec. 27. [DISTRICTS ELIGIBLE FOR ALTERNATIVE FACILITIES 178.39 REVENUE PROGRAM.] 178.40 Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 834, 178.41 STILLWATER.] Independent school district No. 834, Stillwater, is 178.42 eligible for the alternative facilities revenue program under 179.1 Minnesota Statutes, section 123B.59, for the purposes of 179.2 financing school facilities in the district. 179.3 Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS 179.4 VIEW.] Independent school district No. 621, Mounds View, is 179.5 eligible for the alternative facilities revenue program under 179.6 Minnesota Statutes, section 123B.59, for the purposes of 179.7 financing school facilities in the district. 179.8 Subd. 3. [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST. 179.9 PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 622, 179.10 North St. Paul-Maplewood-Oakdale, is eligible for the 179.11 alternative facilities revenue program under Minnesota Statutes, 179.12 section 123B.59, for the purposes of financing school facilities 179.13 in the district. 179.14 Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 624, WHITE BEAR 179.15 LAKE.] Independent school district No. 624, White Bear Lake, is 179.16 eligible for the alternative facilities revenue program under 179.17 Minnesota Statutes, section 123B.59, for the purposes of 179.18 financing school facilities in the district. 179.19 Subd. 5. [COMPLIANCE WITH SUPERINTENDENT REPORT.] In order 179.20 to be eligible for the alternative facilities revenue program 179.21 according to this section, the district must comply with 179.22 Minnesota Statutes, section 123B.143, subdivision 1, clause (5). 179.23 Sec. 28. [ELK RIVER DEBT SERVICE LOAN TAX ADJUSTMENT.] 179.24 The department shall recompute the maximum tax rate 179.25 required under Minnesota Statutes, section 126C.63, subdivision 179.26 8, for taxes payable in 2000 and thereafter for independent 179.27 school district No. 728, Elk River. The recomputation shall 179.28 adjust for the difference in property tax base in the district 179.29 relative to the state average as determined under Laws 1997, 179.30 First Special Session chapter 4, article 1, section 61, 179.31 subdivision 2. 179.32 Sec. 29. [RESIDENTIAL ACADEMIES.] 179.33 If a recipient has been awarded a grant under Laws 1998, 179.34 chapter 398, article 5, section 46, and fails to meet the 179.35 requirements under the application process for implementing the 179.36 program after June 30, 1999, any grant money awarded but not 180.1 paid shall not cancel but is appropriated to the commissioner 180.2 for new grants. The commissioner may reopen the application 180.3 process with any funds made available. The commissioner shall 180.4 consider an application that proposes to use the state facility 180.5 at Sauk Centre for the program. Notwithstanding any law enacted 180.6 during the 1999 session, if a recipient proposes to use the 180.7 state facility at Sauk Centre, the facility shall transfer to 180.8 the commissioner of administration. 180.9 Sec. 30. [APPROPRIATION.] 180.10 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 180.11 LEARNING.] The sums indicated in this section are appropriated 180.12 from the general fund to the department of children, families, 180.13 and learning for the fiscal years designated. 180.14 Subd. 2. [FACILITIES EQUALIZATION AID.] For facilities 180.15 equalization aid according to Minnesota Statutes, section 180.16 123B.53, subdivision 6: 180.17 $66,751,000 ..... 2000 180.18 $66,894,000 ..... 2001 180.19 The 2000 appropriation includes $6,957,000 for 1999 and 180.20 $59,794,000 for 2000. The 2001 appropriation includes 180.21 $6,640,000 for 2000 and $60,254,000 for 2001. 180.22 Subd. 3. [INTERACTIVE TELEVISION (ITV) AID.] For 180.23 interactive television (ITV) aid according to Minnesota 180.24 Statutes, section 126C.40, subdivision 4: 180.25 $4,197,000 ..... 2000 180.26 $2,851,000 ..... 2001 180.27 The 2000 appropriation includes $405,000 for 1999 and 180.28 $3,792,000 for 2000. The 2001 appropriation includes $421,000 180.29 for 2000 and $2,430,000 for 2001. 180.30 Subd. 4. [ONE-TIME INFRASTRUCTURE GRANTS.] For grants for 180.31 infrastructure improvement: 180.32 $1,082,000 ..... 2000 180.33 Of this amount, $50,000 is for independent school district 180.34 No. 23, Frazee; $150,000 is for independent school district No. 180.35 659, Northfield; $300,000 is for independent school district No. 180.36 392, Le Center; $316,000 is for independent school district No. 181.1 31, Bemidji; and $266,000 is for independent school district No. 181.2 542, Battle Lake. These grants must be used to improve and 181.3 update the district's school infrastructure including facilities 181.4 purposes that lead to greater program efficiencies, technology 181.5 infrastructure, or building maintenance. 181.6 Subd. 5. [FACILITY GRANT; BROOKLYN CENTER.] For a grant to 181.7 independent school district No. 286, Brooklyn Center, a district 181.8 impacted by statutory operating debt, for replacement of two 181.9 boilers and one chiller: 181.10 $150,000 ..... 2000 181.11 This appropriation is available until June 30, 2001. 181.12 Subd. 6. [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 181.13 a disaster relief facilities grant to independent school 181.14 district No. 81, Comfrey: 181.15 $450,000 ..... 2000 181.16 This appropriation is available until June 30, 2001. 181.17 This grant is for facilities replacement costs not covered 181.18 by the district's insurance settlement or through federal 181.19 emergency management agency payments. 181.20 Subd. 7. [DISASTER RELIEF FACILITIES GRANT; ST. 181.21 PETER.] For a disaster relief facilities grant to independent 181.22 school district No. 508, St. Peter: 181.23 $600,000 ..... 2000 181.24 This grant is for facilities replacement costs not covered 181.25 by the district's insurance settlement or through federal 181.26 emergency management agency payments. 181.27 This appropriation is available until June 30, 2001. 181.28 Subd. 8. [PLANNING GRANT; MINNESOTA RIVER VALLEY EDUCATION 181.29 DISTRICT.] For a matching grant to the Minnesota river valley 181.30 education district to develop a plan for the co-location of 181.31 Minnesota river valley education district, including its area 181.32 learning center, and southwest Minnesota workforce development 181.33 center facilities, including the collaboration of the delivery 181.34 of their services: 181.35 $50,000 ..... 2000 181.36 The outcomes of the matching planning grant are to: 182.1 (1) develop a coordinated plan to improve the delivery of 182.2 services through the co-location of the participating district's 182.3 and workforce center's programs and services; 182.4 (2) offer services through various educational and 182.5 workforce center programs that will help students meet state 182.6 graduation requirements; and 182.7 (3) examine licensing issues that may prevent the most 182.8 efficient use of shared staffing. 182.9 The commissioner shall award the grant to the Minnesota 182.10 river valley education district contingent upon the district 182.11 demonstrating that it will match the grant amount with revenue 182.12 contributed from member school districts and the workforce 182.13 development center. 182.14 This appropriation is available until June 30, 2001. 182.15 Subd. 9. [URBAN LEAGUE STREET ACADEMY.] For a grant to 182.16 special school district No. 1, Minneapolis, for the urban league 182.17 street academy for the costs of acquiring and moving to a larger 182.18 building to expand the academy's program: 182.19 $750,000 ..... 2000 182.20 This appropriation is available until June 30, 2001. 182.21 Subd. 10. [JACKSON COUNTY CENTRAL.] For a grant to 182.22 independent school district No. 2862, Jackson County Central, 182.23 for unanticipated costs related to facilities and consolidating 182.24 the Jackson and Lakefield school districts: 182.25 $90,000 ..... 2000 182.26 This appropriation is available until June 30, 2001. 182.27 Subd. 11. [HOLDINGFORD GRANT.] For a grant to independent 182.28 school district No. 738, Holdingford, for a one-time grant to 182.29 bring the girls locker room into Title IX compliance and to 182.30 complete the construction on a school theater. 182.31 $200,000 ..... 2000 182.32 This appropriation is available until June 30, 2001. 182.33 Subd. 12. [WADENA-DEER CREEK PILOT GRANT.] For a grant to 182.34 independent school district No. 2155, Wadena-Deer Creek, for a 182.35 pilot project to use technology to support instruction in 182.36 mathematics and reading. 183.1 $111,000 ..... 2000 183.2 This appropriation is available until June 30, 2001. 183.3 Subd. 13. [YEAR-ROUND OPTIONAL SCHOOL; 183.4 CAMBRIDGE-ISANTI.] For a grant to independent school district 183.5 No. 911, Cambridge-Isanti: 183.6 $100,000 ..... 2000 183.7 This appropriation must be used for initial facility costs 183.8 relating to the district's year-round optional school that 183.9 assists in reducing elementary teacher-to-student ratios, 183.10 including expenses to conform leased space to building code 183.11 requirements. 183.12 Subd. 14. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 183.13 EXPENSES.] For a grant and administrative expenses to facilitate 183.14 planning for a cooperative secondary facility under a joint 183.15 powers agreement for school district Nos. 411, Balaton, 402, 183.16 Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 183.17 Tyler: 183.18 $100,000 ..... 2000 183.19 Subd. 15. [TELECOMMUNICATION ACCESS GRANTS.] For 183.20 telecommunication access grants according to Minnesota Statutes, 183.21 section 125B.20: 183.22 $5,000,000 ..... 2000 183.23 This appropriation is available until June 30, 2001. 183.24 Sec. 31. [REPEALER.] 183.25 (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 183.26 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 183.27 subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 183.28 subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 183.29 are repealed effective the day following final enactment. 183.30 (b) Minnesota Statutes 1998, section 123B.58, is repealed 183.31 effective July 1, 2004. 183.32 (c) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 183.33 3500.4200; and 3500.4300, are repealed. 183.34 Sec. 32. [REVISOR INSTRUCTION.] 183.35 (a) In the next and subsequent editions of Minnesota 183.36 Statutes, the revisor shall codify section 23 as Minnesota 184.1 Statutes, section 125B.21. 184.2 (b) In the next and subsequent editions of Minnesota 184.3 Statutes, the revisor shall change the headnote of section 184.4 123B.63 from "BUILDING CONSTRUCTION DOWN PAYMENT PROGRAM" to 184.5 "BUILDING CONSTRUCTION DOWN PAYMENT AND LEASE PROGRAM." 184.6 Sec. 33. [EFFECTIVE DATES.] 184.7 When preparing the prekindergarten through grade 12 184.8 education conference committee report for adoption by the 184.9 legislature, the revisor shall combine all effective date 184.10 notations in this article into this effective date section. 184.11 ARTICLE 5 184.12 EDUCATION EXCELLENCE 184.13 Section 1. Minnesota Statutes 1998, section 41D.02, 184.14 subdivision 2, is amended to read: 184.15 Subd. 2. [ELEMENTARY AND SECONDARY AGRICULTURAL 184.16 EDUCATION.] The council may provide grants for: 184.17 (1) planning and establishment costs for elementary and 184.18 secondary agriculture education programs; 184.19 (2) new instructional and communication technologies; and 184.20 (3) curriculum updates. 184.21 Sec. 2. Minnesota Statutes 1998, section 123A.05, is 184.22 amended by adding a subdivision to read: 184.23 Subd. 5. [BUILDING LEASE AID.] When an area learning 184.24 center or a contracted alternative school finds it economically 184.25 advantageous to rent or lease a building or land for any 184.26 instructional purpose and it determines that the total operating 184.27 capital revenue under section 126C.10, subdivision 13, is 184.28 insufficient for this purpose, it may apply to the commissioner 184.29 for building lease aid for this purpose. Criteria for aid 184.30 approval and revenue uses shall be as defined for the building 184.31 lease levy in section 126C.40, subdivision 1, paragraphs (a) and 184.32 (b). The amount of building lease aid per pupil unit served for 184.33 an area learning center or a contracted alternative school for 184.34 any year shall not exceed the lesser of: (1) 80 percent of the 184.35 approved cost; or (2) the product of the pupil units served for 184.36 the current school year times the sum of the state average debt 185.1 redemption fund revenue plus capital revenue, according to 185.2 section 126C.40, per pupil unit served for the current fiscal 185.3 year. Area learning centers and contracted alternatives may not 185.4 purchase land or buildings with money received from the state. 185.5 (Effective date: Section 2 (123A.05, subdivision 5) is 185.6 effective the day following final enactment.) 185.7 Sec. 3. Minnesota Statutes 1998, section 124D.10, 185.8 subdivision 3, is amended to read: 185.9 Subd. 3. [SPONSOR; GRANT.] A school board, intermediate 185.10 school district school board, education districts organized 185.11 under sections 123A.15 to 123A.19, private college, community 185.12 college, state university, technical college, or the University 185.13 of Minnesota may sponsor one or more charter schools. 185.14 Sec. 4. Minnesota Statutes 1998, section 124D.10, 185.15 subdivision 4, is amended to read: 185.16 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 185.17 authorize one or more licensed teachers under section 122A.18, 185.18 subdivision 1, to operate a charter school subject to approval 185.19 by the state board. A board must vote on charter school 185.20 application for sponsorship no later than 60 days after receipt 185.21 of the application. After 60 days, the applicant may apply to 185.22 the state board. If a board elects not to sponsor a charter 185.23 school, the applicant may appeal the board's decision to the 185.24 state boardif two members of the board voted to sponsor the185.25school. If the state board authorizes the school, the state 185.26 board must sponsor the school according to this section. The 185.27 school must be organized and operated as a cooperative under 185.28 chapter 308A or nonprofit corporation under chapter 317A. 185.29 (b) Before the operators may form and operate a school, the 185.30 sponsor must file an affidavit with the state board stating its 185.31 intent to authorize a charter school. The affidavit must state 185.32 the terms and conditions under which the sponsor would authorize 185.33 a charter school. The state board must approve or disapprove 185.34 the sponsor's proposed authorization within 60 days of receipt 185.35 of the affidavit. Failure to obtain state board approval 185.36 precludes a sponsor from authorizing the charter school that was 186.1 the subject of the affidavit. 186.2 (c) The operators authorized to organize and operate a 186.3 school must hold an election for members of the school's board 186.4 of directors in a timely manner after the school is operating. 186.5 Any staff members who are employed at the school, including 186.6 teachers providing instruction under a contract with a 186.7 cooperative, and all parents of children enrolled in the school 186.8 may participate in the election. Licensed teachers employed at 186.9 the school, including teachers providing instruction under a 186.10 contract with a cooperative, must be a majority of the members 186.11 of the board of directors, unless the state board waives the 186.12 requirement for the school. A provisional board may operate 186.13 before the election of the school's board of directors. Board 186.14 of director meetings must comply with section 471.705. 186.15 (d) The granting or renewal of a charter by a sponsoring 186.16 entity must not be conditioned upon the bargaining unit status 186.17 of the employees of the school. 186.18 Sec. 5. Minnesota Statutes 1998, section 124D.10, 186.19 subdivision 5, is amended to read: 186.20 Subd. 5. [CONVERSION OF EXISTING SCHOOLS.] A board may 186.21 convert one or more of its existing schools to charter schools 186.22 under this section if9060 percent of the full-time teachers at 186.23 the school sign a petition seeking conversion. The conversion 186.24 must occur at the beginning of an academic year. 186.25 Sec. 6. Minnesota Statutes 1998, section 124D.10, 186.26 subdivision 6, is amended to read: 186.27 Subd. 6. [CONTRACT.] The sponsor's authorization for a 186.28 charter school must be in the form of a written contract signed 186.29 by the sponsor and the board of directors of the charter 186.30 school. The contract must be completed within 90 days of the 186.31 state board approval of the sponsor's proposed authorization. 186.32 The contract for a charter school must be in writing and contain 186.33 at least the following: 186.34 (1) a description of a program that carries out one or more 186.35 of the purposes in subdivision 1; 186.36 (2) specific outcomes pupils are to achieve under 187.1 subdivision 10; 187.2 (3) admission policies and procedures; 187.3 (4) management and administration of the school; 187.4 (5) requirements and procedures for program and financial 187.5 audits; 187.6 (6) how the school will comply with subdivisions 8, 13, 16, 187.7 and 23; 187.8 (7) assumption of liability by the charter school; 187.9 (8) types and amounts of insurance coverage to be obtained 187.10 by the charter school; 187.11 (9) the term of the contract, which may be up to three 187.12 years; and 187.13 (10) if the board of directors or the operators of the 187.14 charter school provide special instruction and services for 187.15 children with a disability under sections 125A.03 to 125A.24, 187.16 and 125A.65, a description of the financial parameters within 187.17 which the charter school will operate to provide the special 187.18 instruction and services to children with a disability. 187.19 Sec. 7. Minnesota Statutes 1998, section 124D.10, 187.20 subdivision 11, is amended to read: 187.21 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 187.22 charter school must employ or contract with necessary teachers, 187.23 as defined by section 122A.15, subdivision 1, who hold valid 187.24 licenses to perform the particular service for which they are 187.25 employed in the school. The school may employ necessary 187.26 employees who are not required to hold teaching licenses to 187.27 perform duties other than teaching and may contract for other 187.28 services. The school may discharge teachers and nonlicensed 187.29 employees. A person, without holding a valid administrator's 187.30 license, may perform administrative, supervisory, or 187.31 instructional leadership duties. 187.32 The board of directors also shall decide matters related to 187.33 the operation of the school, including budgeting, curriculum and 187.34 operating procedures. 187.35 (Effective date: Section 7 (124D.10, subdivision 11) is 187.36 effective for the 1999-2000 school year and thereafter.) 188.1 Sec. 8. Minnesota Statutes 1998, section 124D.11, 188.2 subdivision 4, is amended to read: 188.3 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 188.4 it economically advantageous to rent or lease a building or land 188.5 for any instructional purposes and it determines that the total 188.6 operating capital revenue under section 126C.10, subdivision 13, 188.7 is insufficient for this purpose, it may apply to the 188.8 commissioner for building lease aid for this purpose. Criteria 188.9 for aid approval and revenue uses shall be as defined for the 188.10 building lease levy in section 126C.40, subdivision 1, 188.11 paragraphs (a) and (b). The amount of building lease aid per 188.12 pupil unit served for a charter school for any year shall not 188.13 exceed the lesser of (a)8090 percent of the approved cost or 188.14 (b) the product of the pupil units served for the current school 188.15 year timesthe sum of the state average debt redemption fund188.16revenue plus capital revenue, according to section 126C.40, per188.17pupil unit served for the current fiscal year$1,500. 188.18 Sec. 9. Minnesota Statutes 1998, section 124D.11, 188.19 subdivision 6, is amended to read: 188.20 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 188.21 school is eligible to receive other aids, grants, and revenue 188.22 according to chapters 120A to 129C, as though it were a district. 188.23except that, notwithstanding section 127A.45, subdivision 3, the188.24payments must be of an equal amount on each of the 23 payment188.25dates unless a charter school is in its first year of operation188.26in which case it shall receive on its first payment date ten188.27percent of its cumulative amount guaranteed for the year and 22188.28payments of an equal amount thereafter the sum of which shall be188.2990 percent of the cumulative amount guaranteed. However, it188.30 (b) Notwithstanding paragraph (a), a charter school may not 188.31 receive aid, a grant, or revenue if a levy is required to obtain 188.32 the money, except as otherwise provided in this section. 188.33 (c) Federal aid received by the state must be paid to the 188.34 school, if it qualifies for the aid as though it were a school 188.35 district. 188.36(b)(d) A charter school may receive money from any source 189.1 for capital facilities needs. In the year-end report to the 189.2 state board of education, the charter school shall report the 189.3 total amount of funds received from grants and other outside 189.4 sources. 189.5 (e) Notwithstanding paragraph (a) or (b), a charter school 189.6 is eligible to receive the aid portion of integration revenue 189.7 under section 124D.86, subdivision 3, for enrolled students who 189.8 are residents of a district that is eligible for integration 189.9 revenue. 189.10 Sec. 10. Minnesota Statutes 1998, section 124D.11, is 189.11 amended by adding a subdivision to read: 189.12 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 189.13 Notwithstanding section 127A.45, subdivision 3, aid payments for 189.14 the current fiscal year to a charter school not in its first 189.15 year of operation shall be of an equal amount on each of the 23 189.16 payment dates. A charter school in its first year of operation 189.17 shall receive, on its first payment date, ten percent of its 189.18 cumulative amount guaranteed for the year and 22 payments of an 189.19 equal amount thereafter the sum of which shall be 90 percent of 189.20 the cumulative amount guaranteed. 189.21 (b) Notwithstanding section 127A.45, subdivision 3, and 189.22 paragraph (a), 90 percent of the start-up cost aid under 189.23 subdivision 8 shall be paid within 30 days of receipt of a fall 189.24 enrollment report from the charter school. 189.25 Sec. 11. Minnesota Statutes 1998, section 124D.11, is 189.26 amended by adding a subdivision to read: 189.27 Subd. 10. [COMPENSATION REVENUE PUPIL UNITS; GROWTH 189.28 COSTS.] A charter school that experiences growth in excess of 20 189.29 percent of its compensation revenue pupil units computed 189.30 according to section 126C.05, subdivision 3, in a single year is 189.31 eligible for compensatory revenue equal to the formula allowance 189.32 times the difference between the charter school's compensation 189.33 revenue pupil units in the current year minus the compensation 189.34 revenue pupil units served in the previous year. 189.35 Sec. 12. Minnesota Statutes 1998, section 124D.90, is 189.36 amended to read: 190.1 124D.90 [SCHOOL AND COMMUNITY ENRICHMENT PARTNERSHIP 190.2 PROGRAM.] 190.3 Subdivision 1. [ESTABLISHMENT.] The school and community 190.4 enrichment partnership program is established. The purpose of 190.5 the program is to encourage districts to expand the involvement 190.6 of the community and the private sector in the delivery of 190.7 academic programs. The program will provide matching state 190.8 funds for those provided bytheprivatesectorresources. 190.9 Subd. 2. [REVENUE ELIGIBILITY.] A districtor group of190.10districtsis eligible to receivestate aida grant under this 190.11 program. Districts may enter into joint agreements to provide 190.12 programs or make expenditures under this section. The 190.13 limitations under this subdivision apply to these programs or 190.14 expenditures as if they were operated by a single district. A 190.15 district may receive $1 of stateaidgrant money for each $2 190.16 raised from the private sector. The private match must be in 190.17 the form of cash. Specific types of noncash support may be 190.18 considered for the private match.State aidA grant is limited 190.19 tothe lesser of $75,000 or $10 per pupil unit per190.20district$10,000 per district or $5,000 per school site. 190.21 Subd. 3. [REVENUE MANAGEMENT.] The use of the state and 190.22 private funds provided under this section is under the general 190.23 control of the board. The board may establish, without using 190.24 state funds or public employees, a separate foundation to 190.25 directly manage the funds. Theprivatefunds must be used to 190.26 acquire instructionalor noninstructionalacademic materialsof190.27a capital nature including, but not limited to, textbooks,190.28globes, maps, and other academic materialto support student 190.29 learning. The funds shall not be used for salaries or other 190.30 employee benefits. 190.31 Subd. 4. [PROCEDURES; REPORT.] The Minnesota academic 190.32 excellence foundation, under the direction of the commissioner 190.33 must establish application forms, guidelines, procedures, and 190.34 timelines for the distribution ofstate aida grant. The 190.35 commissioner may require reporting necessary to evaluate the 190.36 program. Measures of success will include numbers of 191.1 partnerships and funds raised; numbers of school foundations 191.2 formed; numbers of volunteers engaged; increased numbers of 191.3 students participating in academic league activities under 191.4 section 124D.94, subdivision 4; and demonstrated linkages of 191.5 partnerships to improved instructional delivery resulting in 191.6 increased student learning. 191.7 Subd. 5. [RESULTS-ORIENTED CHARTER SCHOOLS.] 191.8 Notwithstanding section 124D.11, subdivision 6, paragraph (b), a 191.9 results-oriented charter school is eligible to participate in 191.10 the program under this section as if it were a district. 191.11 Sec. 13. Minnesota Statutes 1998, section 125B.05, 191.12 subdivision 3, is amended to read: 191.13 Subd. 3. [SOFTWARE DEVELOPMENT.]The commissioner may191.14charge school districts or cooperative units for the actual cost191.15of software development used by the district or cooperative191.16unit. Any amount received is annually appropriated to the191.17department of children, families, and learning for this191.18purpose.A school district, charter school, or cooperative unit 191.19 may not implement apayrollfinancial, student, or staff 191.20 software systemafter June 30, 1994,until the system has been 191.21 reviewed by the department to ensure that it provides the 191.22 required data elements and format. 191.23 Sec. 14. Minnesota Statutes 1998, section 272.02, 191.24 subdivision 8, is amended to read: 191.25 Subd. 8. [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 191.26 SCHOOLS.] Property that is leased or rented to a school district 191.27 or a charter school is exempt from taxation if it meets the 191.28 following requirements: 191.29 (1) the lease must be for a period of at least 12 191.30 consecutive months; 191.31 (2) the terms of the lease must require the school district 191.32 or charter school to pay a nominal consideration for use of the 191.33 building; 191.34 (3) the school district or charter school must use the 191.35 property to provide direct instruction in any grade from 191.36 kindergarten through grade 12; special education for handicapped 192.1 children; adult basic education as described in section 124D.52; 192.2 preschool and early childhood family education; or community 192.3 education programs, including provision of administrative 192.4 services directly related to the educational program at that 192.5 site; and 192.6 (4) the lease must provide that the school district or 192.7 charter school has the exclusive use of the property during the 192.8 lease period. 192.9 Sec. 15. Laws 1997, First Special Session chapter 4, 192.10 article 9, section 6, is amended to read: 192.11 Sec. 6. [LEARNING ACADEMY.] 192.12 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 192.13 develop standards and requirements and certify courses for a 192.14 Minnesota learning academy to provide training opportunities for 192.15 educators, administrators, school media and information 192.16 technology professionals, and librarians in the use of 192.17 technology and its integration into learning activities for 192.18 meeting the educational needs of all students. Only certified 192.19 classes may be used to fulfill the requirements of the learning 192.20 academy. 192.21 Subd. 2. [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 192.22 the learning academy, the commissioner shall consult with 192.23 representatives of public schools, higher education, teacher 192.24 organizations, students, private business, state agencies, 192.25 libraries, and political subdivisions to do the following: 192.26 (1) set measures for teacher training opportunities on 192.27 technical skills and technology integration skills; 192.28 (2) identify and establish outcomes for a series of 192.29 training courses that provide for technical skills and 192.30 technology classroom integration skills, including skills to 192.31 enable school media and information specialists to train school 192.32 staff; 192.33 (3) identify existing education organizations, public, or 192.34 private institutions to develop and provide training courses; 192.35 (4) evaluate prerequisites for the classroom integration 192.36 skills course; 193.1 (5) certify or decertify classes and courses for inclusion 193.2 in or exclusion from the learning academy; and 193.3 (6) coordinate and make certified classes and courses 193.4 available to eligible participants. 193.5 Subd. 3. [FUNDING.] The commissioner shall use available 193.6 appropriations to provide start-up and initial operating 193.7 subsidies for the learning academy sites. Appropriated funds 193.8 may also be used to partially subsidize costs of attendees of 193.9 the academy. 193.10 Sec. 16. [BRAIN POWER: BIRTH TO CLASSROOM SYSTEM 193.11 ALIGNMENT PILOT.] 193.12 Subdivision 1. [GOALS.] The goals of the brain power: 193.13 birth to classroom system alignment pilot are to: 193.14 (1) improve academic and social outcomes for young children 193.15 ages birth to eight so that they will be prepared to reach their 193.16 highest academic potential; 193.17 (2) create equity in opportunity in education by the third 193.18 grade; 193.19 (3) encourage the use of different and innovative teaching 193.20 methods designed to maximize learning and based on academic 193.21 research involving brain formation and development; and 193.22 (4) provide for measurable learning achievement. 193.23 Subd. 2. [GRANT APPLICATION.] Early childhood care and 193.24 education service providers serving children ages birth to eight 193.25 may apply to the commissioner of children, families, and 193.26 learning for brain power: birth to classroom funds in addition 193.27 to funding sources which the applicant may be entitled to access 193.28 under existing law. Applicants must submit an application to 193.29 the commissioner in the form prescribed by the commissioner. 193.30 The application must include a detailed description of the 193.31 program including: 193.32 (1) a defined service delivery area and the number of 193.33 children to be served; 193.34 (2) how the pilot will be structured to reflect the 193.35 characteristics of the children, their families, and the 193.36 community involved in the program; 194.1 (3) how the pilot will differ in context, scope, content, 194.2 delivery, or other respects from early childhood care and 194.3 education programming already available through existing state 194.4 and local funding sources; 194.5 (4) how the pilot will integrate professional development 194.6 for staff; and 194.7 (5) what streams of funding the pilot will integrate. 194.8 Subd. 3. [ELIGIBILITY.] Applicants must meet the following 194.9 eligibility criteria: 194.10 (1) applicants must at a minimum consist of a consortia of 194.11 local representatives from the following service delivery 194.12 systems: Head Start; early childhood and family education; 194.13 learning readiness; the child care community, including 194.14 school-age child care; the local schools; public health; and the 194.15 county; 194.16 (2) pilots must operate according to a plan approved by the 194.17 commissioner; 194.18 (3) applicants must agree to utilize, within their first 194.19 year of operation, the work sampling system of child assessment 194.20 and use the early benchmark at age 3-1/2 years as required by 194.21 the commissioner; and 194.22 (4) applicants will be expected to determine indicators and 194.23 demonstrate strategies to achieve a common set of outcomes and 194.24 document processes used to achieve improved outcomes for 194.25 children. 194.26 Sec. 17. [STABILITY DEMONSTRATION PROJECT.] 194.27 A demonstration project involving high mobility schools is 194.28 established in independent school district No. 625, St. Paul, to 194.29 improve student achievement and to provide a model to other 194.30 districts with high mobility schools. Notwithstanding Minnesota 194.31 Statutes, sections 123B.84 to 123B.86, the district may provide 194.32 transportation to students living within the stability zone 194.33 designated by the district to maintain attendance at the same 194.34 school without providing similar transportation to other 194.35 students. The district must match $1 of district money for each 194.36 $2 of grant money received. 195.1 Sec. 18. [BASIC SKILLS INTERVENTION; EXTENDED 195.2 INSTRUCTION.] 195.3 Subdivision 1. [GRANTS.] The commissioner of children, 195.4 families, and learning shall administer grants for fiscal year 195.5 2000 for grants to school sites that offer a basic skills 195.6 intervention program outside of the regular school day, 195.7 including Saturdays. The site shall provide intensive tutoring 195.8 to students who have not yet passed the basic skills tests in 195.9 math or reading. Sites may also offer a program to students 195.10 who, based on the statewide assessments in grades 3 and 5, are 195.11 at risk of failing the basic skills examinations. 195.12 Subd. 2. [APPLICATION PROCESS.] To obtain a grant, a 195.13 school site must submit an application to the commissioner in 195.14 the form and manner established by the commissioner. The 195.15 application must describe how the applicant will provide the 195.16 services described in subdivision 1. 195.17 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 195.18 to school sites who meet the requirements of this section. The 195.19 commissioner must base the amount of the grant on the number of 195.20 children expected to participate in the program. 195.21 Sec. 19. [CLASS SIZE STUDY.] 195.22 The class size study at independent school district No. 12, 195.23 Centennial, shall continue for fiscal years 2000 and 2001. The 195.24 study shall focus on whether or not small class sizes would 195.25 result in statistically significant gains in student achievement 195.26 as defined by the state graduation standards, reductions of 195.27 special education referrals, and reductions in negative behavior 195.28 incidents. The study shall also monitor parent, teacher, and 195.29 student attitudes about lower class sizes. The study shall 195.30 compare a reduced class size group to a control group class with 195.31 a larger student to teacher ratio. The Centennial school 195.32 district shall report to the commissioner of children, families, 195.33 and learning, and to the education committees of the legislature 195.34 by February 1, 2001, on the results of the class size study. 195.35 Sec. 20. [HEALTH PLAN STUDY.] 195.36 The education organizations that participate in the 196.1 development of a report on costs of health insurance for 196.2 kindergarten through grade 12 educators shall report its 196.3 findings to the legislative committees of the legislature by 196.4 February 15, 2000. 196.5 Sec. 21. [APPROPRIATIONS.] 196.6 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 196.7 LEARNING.] The sums indicated in this section are appropriated 196.8 from the general fund to the department of children, families, 196.9 and learning for the fiscal years designated. 196.10 Subd. 2. [STATEWIDE TESTING.] For supporting 196.11 implementation of the graduation standards: 196.12 $9,000,000 ..... 2000 196.13 $9,000,000 ..... 2001 196.14 Any balance in the first year does not cancel but is 196.15 available in the second year. 196.16 Subd. 3. [CHARTER SCHOOL BUILDING LEASE AID.] For building 196.17 lease aid according to Minnesota Statutes, section 124D.11, 196.18 subdivision 4: 196.19 $2,510,000 ..... 2000 196.20 $3,004,000 ..... 2001 196.21 The 2000 appropriation includes $194,000 for 1999 and 196.22 $2,316,000 for 2000. 196.23 The 2001 appropriation includes $273,000 for 2000 and 196.24 $2,731,000 for 2001. 196.25 Subd. 4. [CHARTER SCHOOL START-UP GRANTS.] For charter 196.26 school start-up cost aid under Minnesota Statutes, section 196.27 124D.11: 196.28 $1,689,000 ..... 2000 196.29 $1,776,000 ..... 2001 196.30 The 2000 appropriation includes $100,000 for 1999 and 196.31 $1,589,000 for 2000. 196.32 The 2001 appropriation includes $188,000 for 1999 and 196.33 $1,588,000 for 2001. 196.34 Any balance in the first year does not cancel but is 196.35 available in the second year. This appropriation may also be 196.36 used for grants to convert existing schools into charter schools. 197.1 Subd. 5. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 197.2 grant to independent school district No. 625, St. Paul, for the 197.3 operation of a community-based school program. The school 197.4 district must report to the legislature on the academic and 197.5 social results of this program by January 15, 2000. 197.6 $3,000,000 ..... 2000 197.7 Any balance in the first year does not cancel but is 197.8 available in the second year. This is a one-time appropriation. 197.9 Subd. 6. [GRADUATION RULE RESOURCE GRANTS.] For graduation 197.10 rule resource grants according to Laws 1998, chapter 398, 197.11 article 5, section 40: 197.12 $6,850,000 ..... 2000 197.13 This appropriation is available until June 30, 2001. 197.14 Of this amount, $400,000 is for a planning grant to 197.15 independent school district No. 112, Chaska, for a project 197.16 involving the Minnesota Arboretum; $100,000 is for the city of 197.17 St. Paul, including the Como Park Zoo; $500,000 is for a current 197.18 recipient of funding from the National Geographic Society 197.19 Education Foundation; $130,000 is for a program offering horse 197.20 riding as an alternative educational program for children with a 197.21 disability; $100,000 is for a Young Inventors Program; $850,000 197.22 is for neighborhood-based programs combining the arts and 197.23 physical education; $100,000 is for programs developing an 197.24 integrated model of technology and environmental learning; 197.25 $250,000 is for programs for violence prevention through the 197.26 arts; $180,000 is for Murphy's Landing; $1,000,000 is for an 197.27 arts via the Internet collaborative project between the Walker 197.28 Art Center and the Minneapolis Institute of Arts; and $500,000 197.29 is for special education graduation rule development. 197.30 Subd. 7. [TALENTED STUDENT PROGRAMS.] For grants to 197.31 talented students programs: 197.32 $2,375,000 ..... 2000 197.33 $1,375,000 ..... 2001 197.34 Notwithstanding Minnesota Statutes, section 120B.13, 197.35 subdivision 3, in each year to the extent of available 197.36 appropriations, the commissioner shall pay all examination fees 198.1 for all students sitting for an advanced placement examination, 198.2 international baccalaureate examination, or both. If this 198.3 amount is not adequate, the commissioner may pay less than the 198.4 full examination fee. 198.5 $1,375,000 each year is for student scholarships. A 198.6 student scholarship shall be awarded to a student for each score 198.7 of three or better on any advanced placement examination and for 198.8 each score of four or better on any international baccalaureate 198.9 examination. The amount of each scholarship shall range from 198.10 $150 to $500 based on the student's score on the exams. The 198.11 scholarships shall be awarded only to students who are enrolled 198.12 in a Minnesota public or private college or university. The 198.13 total amount of each scholarship shall be paid directly to the 198.14 student's designated college or university and must be used by 198.15 the student only for tuition, required fees, and books in 198.16 nonsectarian courses or programs. The higher education services 198.17 office, in consultation with the commissioner, shall determine 198.18 the payment process, the amount of the scholarships, and 198.19 provisions for unused scholarships. 198.20 In order to be eligible to receive advanced placement or 198.21 international baccalaureate scholarships on behalf of the 198.22 qualifying students, the college or university must have an 198.23 advanced placement, international baccalaureate, or both, credit 198.24 and placement policy for the scholarship recipients. In 198.25 addition, each college or university must certify these policies 198.26 to the department each year. The department must provide each 198.27 secondary school in the state with a copy of the post-secondary 198.28 advanced placement and international baccalaureate policies each 198.29 year. 198.30 $500,000 in fiscal year 2000 is for a grant to the South 198.31 Central Service Cooperative for the Minnesota talented youth 198.32 math project operated by the South Central Service Cooperative 198.33 and as fiscal agent for the talented youth math programs 198.34 established and operated by the Northwest Service Cooperative, 198.35 Northeast Service Cooperative, North Central Service 198.36 Cooperative, and Southwest/Central Service Cooperative. 199.1 $500,000 in fiscal year 2000 is for grants to provide 199.2 gifted and talented students with access to appropriate 199.3 programs, consistent with the requirements under Laws 1997, 199.4 First Special Session chapter 4, article 5, section 24. 199.5 Any balance in the first year does not cancel but is 199.6 available in the second year. 199.7 Subd. 8. [CLEARINGHOUSE OF BEST EDUCATIONAL 199.8 PRACTICES.] For the clearinghouse of best educational practices 199.9 under Laws 1998, chapter 398, article 5, section 42: 199.10 $13,668,000 ..... 2000 199.11 This appropriation is available until June 30, 2001. 199.12 Of this amount, $5,000,000 is for a grant to education 199.13 Minnesota to provide three-day best practices seminars during 199.14 the summer of 1999. The seminars shall provide intensive 199.15 professional development for public school teachers on best 199.16 practices and implementing the profile of learning. 199.17 Of this amount, $1,000,000 is for professional development 199.18 grants for programs that utilize best practices in reading and 199.19 $1,200,000 is for Hamline University's center for excellence in 199.20 urban teaching. 199.21 Of this amount, $500,000 is for the Richard Greene 199.22 Institute; $500,000 is for matching funds to make the 199.23 African-American Encyclopedia created by Harvard University 199.24 available in Minnesota schools; $500,000 is for the school and 199.25 community enrichment partnership program according to Minnesota 199.26 Statutes, section 124D.90; $700,000 is for a grant to Shared 199.27 Decisions Minnesota for school restructuring; $500,000 is for 199.28 the Minnesota association of alternative programs; $240,000 is 199.29 for the Minnesota International Center; $500,000 is for the 199.30 Minnesota Children's Museum reading program; $500,000 is for A 199.31 Chance To Grow/New Visions for the Minnesota Learning Resource 199.32 Center; and $2,000,000 is for programs training teachers of 199.33 special needs children. 199.34 The following programs must be considered to receive grant 199.35 money from the clearinghouse of best educational practices to 199.36 further professional development opportunities for teachers: 200.1 programs for technology training; programs implementing best 200.2 practices for English language learners; programs training 200.3 teachers to teach reading; training for violence prevention 200.4 curriculum; training for the use of appropriate positive 200.5 behavioral interventions; programs training teachers to improve 200.6 the academic performance of at-risk children; programs that 200.7 offer staff development for teachers of adult learners; school 200.8 districts that offer teachers extended contracts for additional 200.9 contact days and staff development days; statewide model 200.10 projects using multipurpose Asian media programming, 200.11 multicultural educational applications, or emerging technology; 200.12 and training and workshops approved by the advanced placement or 200.13 international baccalaureate programs. 200.14 Subd. 9. [STUDENT COUNCIL NATIONAL CONVENTION.] For a 200.15 grant to independent school district No. 623, Roseville, for 200.16 transportation costs for the National Association of Student 200.17 Councils' 1999 National Convention to be held June 26 through 200.18 June 30, 1999, at the Roseville Area High School: 200.19 $50,000 ..... 1999 200.20 Subd. 10. [AREA LEARNING CENTER BUILDING LEASE AID.] For 200.21 area learning center building lease aid according to Minnesota 200.22 Statutes, section 123A.05, subdivision 5: 200.23 $2,250,000 ..... 2000 200.24 $2,500,000 ..... 2001 200.25 Subd. 11. [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 200.26 SCHOOLS.] For property leased charter schools according to 200.27 Minnesota Statutes, section 272.02, subdivision 8: 200.28 $100,000 ..... 2000 200.29 $100,000 ..... 2001 200.30 Subd. 12. [CHARTER SCHOOL INTEGRATION AID.] For new 200.31 integration aid to go to charter schools according to Minnesota 200.32 Statutes, section 124D.11, subdivision 6, paragraph (e): 200.33 $50,000 ..... 2000 200.34 $50,000 ..... 2001 200.35 Any balance in the first year does not cancel but is 200.36 available in the second year. 201.1 Subd. 13. [COMPENSATORY GROWTH COSTS.] For compensatory 201.2 growth costs according to Minnesota Statutes, section 124D.11, 201.3 subdivision 10: 201.4 $100,000 ..... 2000 201.5 $100,000 ..... 2001 201.6 Any balance in the first year does not cancel but is 201.7 available in the second year. 201.8 Subd. 14. [BRAIN POWER: BIRTH TO CLASSROOM.] For the 201.9 purposes of the brain power: birth to classroom system 201.10 alignment project: 201.11 $3,000,000 ..... 2000 201.12 This appropriation is available until June 30, 2001. 201.13 Subd. 15. [STABILITY DEMONSTRATION PROJECT.] For a 201.14 stability demonstration project in independent school district 201.15 No. 625, St. Paul: 201.16 $568,000 ..... 2000 201.17 This appropriation is available until June 30, 2001. 201.18 Subd. 16. [BASIC SKILLS INTERVENTION; EXTENDED 201.19 INSTRUCTION.] For basic skills intervention programs outside of 201.20 the regular school day: 201.21 $500,000 ..... 2000 201.22 This appropriation is available until June 30, 2001. 201.23 Subd. 17. [CLASS SIZE STUDY.] For a grant to independent 201.24 school district No. 12, Centennial, for a class size study: 201.25 $205,000 ..... 2000 201.26 $218,000 ..... 2001 201.27 Any balance remaining the first year does not cancel but is 201.28 available in the second year. 201.29 Subd. 18. [HOMEWORK HOTLINE.] For grants for homework 201.30 hotline providers: 201.31 $100,000 ..... 2000 201.32 $100,000 ..... 2001 201.33 This appropriation is available to assist students with 201.34 homework by telephone or other interactive technology. The 201.35 program providers must offer assistance to students at least 201.36 four days per week. The state aid is contingent upon the 202.1 program matching each $1 of state revenue with $2 of local or 202.2 private funding or in-kind contributions. 202.3 $40,000 each year is for a "save a friend" youth crisis 202.4 hotline. Local or private matching funds are not required for 202.5 this program. 202.6 (Effective date: Section 21, subdivision 9, 202.7 (Appropriations; Convention) is effective the day following 202.8 final enactment.) 202.9 Sec. 22. [EFFECTIVE DATES.] 202.10 When preparing the prekindergarten through grade 12 202.11 education conference committee report for adoption by the 202.12 legislature, the revisor shall combine all effective date 202.13 notations in this article into this effective dates section. 202.14 ARTICLE 6 202.15 OTHER PROGRAMS 202.16 Section 1. Minnesota Statutes 1998, section 120A.24, 202.17 subdivision 1, is amended to read: 202.18 Subdivision 1. [REPORTS TO SUPERINTENDENT.] The person in 202.19 charge of providing instruction to a child must submit the 202.20 following information to the superintendent of the district in 202.21 which the child resides: 202.22 (1) by October 1 of each school year, the name,agebirth 202.23 date, and address of each child receiving instruction; 202.24 (2) the name of each instructor and evidence of compliance 202.25 with one of the requirements specified in section 120A.22, 202.26 subdivision 10; 202.27 (3) an annual instructional calendar; and 202.28 (4) for each child instructed by a parent who meets only 202.29 the requirement of section 120A.22, subdivision 10, clause (6), 202.30 a quarterly report card on the achievement of the child in each 202.31 subject area required in section 120A.22, subdivision 9. 202.32 Sec. 2. Minnesota Statutes 1998, section 123A.48, 202.33 subdivision 10, is amended to read: 202.34 Subd. 10. [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 202.35 board of any independent district maintaining a secondary 202.36 school, the board of any common district maintaining a secondary 203.1 school, all or part of whose land is included in the proposed 203.2 new district, must, within 45 days of the approval of the plat 203.3 by the commissioner, either adopt or reject the plan as proposed 203.4 in the approved plat. If the board of any such district 203.5 entitled to act on the petition rejects the proposal, the 203.6 proceedings are terminated and dismissed. If any board fails to 203.7 act on the plat within the time allowed, the proceedings are 203.8 terminated. If any school board is unable to obtain a majority 203.9 of its members votes to accept or reject the plat and plan, a 203.10 petition of residents of the district unable to obtain a 203.11 majority of votes equal to 20 percent of the votes cast in the 203.12 last school district general election in that district may be 203.13 submitted to the county auditor requesting a public vote to 203.14 accept or reject the plat and plan. The vote shall be scheduled 203.15 on the next available election date. The county auditor shall 203.16 notify the commissioner of the scheduled vote, conduct the 203.17 election in the district, and certify the results of the 203.18 election to the commissioner. Other affected school boards that 203.19 approve the plat and plan may chose to hold an election. If 203.20 elections are conducted in each affected school district, 203.21 results shall be separate and a majority vote to approve the 203.22 plat and plan must be reached in each of the affected 203.23 districts. If the plat and plan are rejected by the voters, a 203.24 new plat and plan cannot be submitted, except by school board 203.25 resolution in a district where the plat and plan were rejected, 203.26 until January 1 of the year following the next school district 203.27 general election. 203.28 Sec. 3. [123B.5751] [DEFINITIONS.] 203.29 Subdivision 1. [SCOPE.] For the purposes of this section 203.30 and section 123B.5752, the terms defined in this section have 203.31 the meanings given them. 203.32 Subd. 2. [PESTICIDE.] "Pesticide" means any substance or 203.33 mixture of substances intended to prevent, destroy, repel, or 203.34 mitigate a pest, and a substance or mixture of substances 203.35 intended for use as a plant regulator, defoliant, or desiccant, 203.36 except that pesticide does not include any disinfectant or 204.1 sanitizer used for cleaning purposes which is a Toxicity 204.2 Category III or IV Pesticide Product. 204.3 Subd. 3. [PEST.] "Pest" means an insect, rodent, nematode, 204.4 fungus, weed, terrestrial or aquatic plant, animal life, virus, 204.5 bacteria, or other organism designated by rule as a pest, except 204.6 a virus, bacteria, or other microorganism on or in living humans 204.7 or other living animals. 204.8 Subd. 4. [SCHOOL DISTRICT.] "School district" means a 204.9 school district defined under section 120A.05, subdivision 8, 204.10 and includes a charter school. 204.11 Subd. 5. [RESTRICTED USE PESTICIDE.] "Restricted use 204.12 pesticide" means a pesticide formulation designated as a 204.13 restricted use pesticide under FIFRA or by the commissioner of 204.14 agriculture under chapter 18B. 204.15 Subd. 6. [TOXICITY CATEGORY I PESTICIDE 204.16 PRODUCT.] "Toxicity Category I Pesticide Product" means any 204.17 pesticide product that meets United States Environmental 204.18 Protection Agency criteria for Toxicity Category I under Code of 204.19 Federal Regulations, title 40, part 156, section 156.10. 204.20 Subd. 7. [TOXICITY CATEGORY II PESTICIDE 204.21 PRODUCT.] "Toxicity Category II Pesticide Product" means any 204.22 pesticide product that meets United States Environmental 204.23 Protection Agency criteria for Toxicity Category II under Code 204.24 of Federal Regulations, title 40, part 156, section 156.10. 204.25 Subd. 8. [TOXICITY CATEGORY III PESTICIDE 204.26 PRODUCT.] "Toxicity Category III Pesticide Product" means any 204.27 pesticide product that meets United States Environmental 204.28 Protection Agency criteria for Toxicity Category III under Code 204.29 of Federal Regulations, title 40, part 156, section 156.10. 204.30 Subd. 9. [TOXICITY CATEGORY IV PESTICIDE PRODUCT.] 204.31 "Toxicity Category IV Pesticide Product" means any pesticide 204.32 product that meets United States Environmental Protection Agency 204.33 criteria for Toxicity Category IV under Code of Federal 204.34 Regulations, title 40, part 156, section 156.10. 204.35 (Effective Date: Section 3 (123B.5751) is effective July 204.36 1, 2000.) 205.1 Sec. 4. [123B.5752] [SCHOOL DISTRICT INTEGRATED PEST 205.2 MANAGEMENT PLAN.] 205.3 Subdivision 1. [PESTICIDE APPLICATION NOTIFICATION.] A 205.4 school district that plans to apply a pesticide which is a 205.5 Toxicity Category I, II, or III Pesticide Product or a 205.6 restricted use pesticide must provide a notice to parents and 205.7 employees that it is applying such pesticides. 205.8 Subd. 2. [NOTICE AVAILABILITY.] The notice must be 205.9 provided at least annually to the parent or guardian of each 205.10 student and to each employee. The notice may be included in any 205.11 other notice that is provided to a parent or guardian or 205.12 employee. 205.13 Subd. 3. [PLAN.] If a school board adopts a pest 205.14 management plan, the plan must include the following: 205.15 (1) identifying pests which need to be controlled; 205.16 (2) establishing tolerable limits of each identified pest; 205.17 (3) designing future buildings and landscapes to prevent 205.18 identified pests; 205.19 (4) excluding identified pests from sites and buildings 205.20 using maintenance practices; 205.21 (5) adapting cleaning activities and best management 205.22 practices to minimize the number of pests; 205.23 (6) using mechanical methods of controlling identified 205.24 pests; and 205.25 (7) controlling identified pests using the least toxic 205.26 pesticides with the least exposure to persons as is practicable. 205.27 (Effective Date: Section 4 (123B.5752) is effective July 205.28 1, 2000.) 205.29 Sec. 5. [124D.1155] [FAST BREAK TO LEARNING REVENUE.] 205.30 Subdivision 1. [APPLICATION PROCESS.] To receive revenue 205.31 for providing breakfasts to all children, a public elementary 205.32 school that participates in the federal school breakfast and 205.33 lunch programs must submit an application to the commissioner in 205.34 the form and manner the commissioner prescribes. The 205.35 application must describe how the applicant will encourage all 205.36 children in the school to participate in the breakfast program. 206.1 The applicant must also demonstrate to the commissioner that the 206.2 applicant will collect a $1 local match of funding for every $3 206.3 of state funding the applicant receives. The applicant must 206.4 raise the local match either by charging student households not 206.5 eligible for federal free or reduced price meals or by 206.6 soliciting funds or in-kind contributions from nonpublic 206.7 sources. The applicant can determine the method for charging 206.8 student households for school breakfast however it must include 206.9 a consideration of the household's ability to pay. The 206.10 applicant cannot collect local funds from student households for 206.11 school breakfast that exceeds the difference between the revenue 206.12 from federal and state aids and the actual cost of providing the 206.13 breakfast. The commissioner may require additional information 206.14 from the applicant. 206.15 Subd. 2. [REVENUE AMOUNT.] School sites that received 206.16 grants under Laws 1997, First Special Session chapter 4, article 206.17 6, section 19, are eligible for revenue under this section and 206.18 shall receive grants. For fiscal year 2000 and later, the 206.19 commissioner shall determine the revenue amount for school sites 206.20 according to need as determined by the percentage of students 206.21 enrolled in the school who are eligible for federal free or 206.22 reduced price meals and that meet the requirements of this 206.23 section until funding under this section is expended. The 206.24 commissioner shall determine the amount of the revenue using 206.25 average statewide statistics and individual school statistics 206.26 adjusted for other state and federal reimbursements. Revenue 206.27 recipients must use the proceeds to provide breakfast to school 206.28 children every day school is in session. 206.29 Sec. 6. Minnesota Statutes 1998, section 126C.46, is 206.30 amended to read: 206.31 126C.46 [ABATEMENT LEVY.] 206.32 (a) Each year, a school district may levy an amount to 206.33 replace the net revenue lost to abatements that have occurred 206.34 under chapter 278, section 270.07, 375.192, or otherwise. The 206.35 maximum abatement levy is the sum of: 206.36 (1) the amount of the net revenue loss determined under 207.1 section 127A.49, subdivision 2, that is not paid in state aid 207.2 including any aid amounts not paid due to proration; 207.3 (2) the difference of (i) the amount of any abatements that 207.4 have been reported by the county auditor for the first six 207.5 months of the calendar year during which the abatement levy is 207.6 certified that the district chooses to levy, (ii) less any 207.7 amount actually levied under this clause that was certified in 207.8 the previous calendar year for the first six months of the 207.9 previous calendar year; and 207.10 (3) an amount equal to any interest paid on abatement 207.11 refunds. 207.12 (b) A district may spread this levy over a period not to 207.13 exceedthreetwo years. With the approval of the commissioner, 207.14 a district may spread this levy over a period not to exceed 207.15 three years. 207.16 By July 15, the county auditor shall separately report the 207.17 abatements that have occurred during the first six calendar 207.18 months of that year to the commissioner and each district 207.19 located within the county. 207.20 Sec. 7. [LEVY AUTHORITY; CONTINUATION.] 207.21 Subdivision 1. [EXTENSION OF AUTHORITY.] The levy 207.22 authority granted under Laws 1992, chapter 499, article 6, 207.23 section 35, to the Lac qui Parle joint powers district is 207.24 extended to independent school district No. 2853, Lac qui Parle 207.25 Valley. 207.26 Subd. 2. [LEVY AUTHORITY.] For taxes payable in 2000 to 207.27 2004, independent school district No. 2853, Lac qui Parle 207.28 Valley, may levy an amount not to exceed $80,000 for costs 207.29 associated with operating the cooperative secondary high school. 207.30 (Effective Date: Section 7 (levy authority) is effective 207.31 for taxes payable in 2000.) 207.32 Sec. 8. [APPROPRIATIONS.] 207.33 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 207.34 LEARNING.] The sums indicated in this section are appropriated 207.35 from the general fund to the department of children, families, 207.36 and learning for the fiscal years designated. 208.1 Subd. 2. [ABATEMENT AID.] For abatement aid according to 208.2 Minnesota Statutes, section 127A.49: 208.3 $9,110,000 ..... 2000 208.4 $8,947,000 ..... 2001 208.5 The 2000 appropriation includes $1,352,000 for 1999 and 208.6 $7,758,000 for 2000. 208.7 The 2001 appropriation includes $861,000 for 2000 and 208.8 $8,086,000 for 2001. 208.9 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 208.10 education aid according to Minnesota Statutes, sections 123B.40 208.11 to 123B.48 and 123B.87: 208.12 $10,996,000 ..... 2000 208.13 $11,878,000 ..... 2001 208.14 The 2000 appropriation includes $970,000 for 1999 and 208.15 $10,026,000 for 2000. 208.16 The 2001 appropriation includes $1,114,000 for 2000 and 208.17 $10,764,000 for 2001. 208.18 The department shall recompute the maximum allotments 208.19 established on March 1, 1999, for fiscal year 2000 under 208.20 Minnesota Statutes, sections 123B.42, subdivision 3, and 208.21 123B.44, subdivision 6, to reflect the amount appropriated in 208.22 this subdivision for fiscal year 2000. 208.23 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 208.24 consolidating under Minnesota Statutes, section 123A.485: 208.25 $451,000 ..... 2000 208.26 $375,000 ..... 2001 208.27 The 2000 appropriation includes $113,000 for 1999 and 208.28 $338,000 for 2000. 208.29 The 2001 appropriation includes $37,000 for 2000 and 208.30 $338,000 for 2001. 208.31 Any balance in the first year does not cancel but is 208.32 available in the second year. 208.33 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 208.34 pupil transportation aid under Minnesota Statutes, section 208.35 123B.92, subdivision 9: 208.36 $18,552,000 ..... 2000 209.1 $20,880,000 ..... 2001 209.2 The 2000 appropriation includes $1,848,000 for 2000 and 209.3 $16,674,000 for 2001. 209.4 The 2001 appropriation includes $1,852,000 for 2000 and 209.5 $19,028,000 for 2001. 209.6 Subd. 6. [SCHOOL LUNCH.] (a) For school lunch aid 209.7 according to Minnesota Statutes, section 124D.111, and Code of 209.8 Federal Regulations, title 7, section 210.17, and for school 209.9 milk aid according to Minnesota Statutes, section 124D.118: 209.10 $7,770,000 ..... 2000 209.11 $7,770,000 ..... 2001 209.12 (b) Any unexpended balance remaining from the 209.13 appropriations in this subdivision shall be prorated among 209.14 participating schools based on the number of free, reduced, and 209.15 fully paid federally reimbursable student lunches served during 209.16 that school year. 209.17 (c) If the appropriation amount attributable to either year 209.18 is insufficient, the rate of payment for each fully paid student 209.19 lunch shall be reduced and the aid for that year shall be 209.20 prorated among participating schools so as not to exceed the 209.21 total authorized appropriation for that year. 209.22 (d) Not more than $800,000 of the amount appropriated each 209.23 year may be used for school milk aid. 209.24 Subd. 7. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 209.25 food service replacement aid under Minnesota Statutes, section 209.26 124D.119: 209.27 $150,000 ..... 2000 209.28 $150,000 ..... 2001 209.29 Subd. 8. [FAST BREAK TO LEARNING REVENUE.] For fast break 209.30 to learning revenue under Minnesota Statutes, section 124D.1155: 209.31 $15,000,000 ..... 2000 209.32 $15,000,000 ..... 2001 209.33 Any balance in the first year does not cancel but is 209.34 available in the second year. 209.35 Subd. 9. [HIV EDUCATION TRAINING SITES.] For regional 209.36 training sites for HIV education in schools established 210.1 according to Laws 1997, First Special Session chapter 4, article 210.2 6, section 18: 210.3 $458,000 ..... 2000 210.4 Of this amount, $150,000 must be used for continued 210.5 development of the existing sites; $150,000 for adding two 210.6 additional training sites; $75,000 for coordination, technical 210.7 assistance, evaluation, and contract management services for the 210.8 sites; and $50,000 for a report and recommendations on the 210.9 effectiveness of HIV education in public schools according to 210.10 Minnesota Statutes, section 121A.23. 210.11 This appropriation is available until June 30, 2001. 210.12 Subd. 10. [TRANSPORTATION GRANTS.] For grants to school 210.13 districts that use public transportation to transport secondary 210.14 students to and from school: 210.15 $200,000 ..... 2000 210.16 Districts receiving transportation grants must match $1 of 210.17 district money for each $1 of grant money received. 210.18 This appropriation is available until June 30, 2001. 210.19 Subd. 11. [SCHOOL BREAKFAST.] To operate the school 210.20 breakfast program: 210.21 $456,000 ..... 2000 210.22 $456,000 ..... 2001 210.23 Any balance in the first year does not cancel but is 210.24 available in the second year. 210.25 Subd. 12. [MAGNET SCHOOL GRANTS.] (a) For magnet school 210.26 grants: 210.27 $2,350,000 ..... 2000 210.28 (b) Up to $250,000 of this amount may be used for planning 210.29 a magnet school in the metropolitan area on land that is 210.30 currently owned by the state or federal government. Up to 210.31 $250,000 of this appropriation is for planning grants for 210.32 specialty high school programs. Specialty high school programs 210.33 may include a cooperative program with a higher education 210.34 institution to provide either a grade 9 through 16 program or a 210.35 grade 11 through 14 program. 210.36 (c) Of this amount, $1,200,000 is for the discovery magnet 211.1 school in independent school district No. 347, Willmar, for 211.2 capital and operating costs of the magnet school serving 211.3 children from birth through grade 4. 211.4 (d) Of this amount, $350,000 is for a planning grant for an 211.5 urban agricultural high school for curriculum, design, 211.6 coordination with the state's graduation standards, demographic 211.7 research, development of partnerships, site acquisition, market 211.8 assessment of student interest, collaboration with the local 211.9 municipality and school district on any proposed site prior to 211.10 acquisition, and facility predesign purposes. 211.11 (e) Of this amount, $300,000 is to independent school 211.12 district No. 696, Ely, to determine the feasibility of 211.13 establishing a joint secondary and higher education 211.14 environmental studies magnet school. 211.15 (f) This appropriation is available until June 30, 2001. 211.16 Subd. 13. [ONE ROOM SCHOOLHOUSE.] For a grant to 211.17 independent school district No. 690, Warroad, to operate the 211.18 Angle Inlet School: 211.19 $25,000 ..... 2000 211.20 $25,000 ..... 2001 211.21 Subd. 14. [INTEGRATED PEST MANAGEMENT TRAINING AND 211.22 MANUAL.] For training and developing a how-to manual on 211.23 integrated pest management in schools: 211.24 $50,000 ..... 2000 211.25 The Minnesota extension service must provide the department 211.26 of children, families, and learning with appropriate information 211.27 concerning integrated pest management in schools using resources 211.28 already developed by other states or the federal government. 211.29 This appropriation is available until June 30, 2001. 211.30 Sec. 9. [REPEALER.] 211.31 Minnesota Statutes 1998, sections 124D.112; 124D.113; and 211.32 124D.116, are repealed. 211.33 Sec. 10. [EFFECTIVE DATE.] 211.34 When preparing the prekindergarten through grade 12 211.35 education conference committee report for adoption by the 211.36 legislature, the revisor shall combine all effective date 212.1 notations in this article into this effective date section. 212.2 ARTICLE 7 212.3 EDUCATION POLICY 212.4 Section 1. Minnesota Statutes 1998, section 120A.40, is 212.5 amended to read: 212.6 120A.40 [SCHOOL CALENDAR.] 212.7 (a) Except for learning programs during summer, flexible 212.8 learning year programs authorized under sections 124D.12 to 212.9 124D.127, and learning year programs under section 124D.128, a 212.10 district must not commence an elementary or secondary school 212.11 yearprior tobefore September 1, except as provided under 212.12 paragraph (b). Dayswhich aredevoted to teachers' workshops 212.13 may be held before September 1. Districts that enter into 212.14 cooperative agreements are encouraged to adopt similar school 212.15 calendars. 212.16 (b) A district may begin the school year on any day before 212.17 September 1 to accommodate a construction or remodeling project 212.18 of $400,000 or more affecting a district school facility. 212.19 (Effective Date: Notwithstanding any law to the contrary, 212.20 section 1 (120A.40) is effective for the 1999-2000 school year 212.21 and thereafter.) 212.22 Sec. 2. Minnesota Statutes 1998, section 120B.30, 212.23 subdivision 1, is amended to read: 212.24 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 212.25 with advice from experts with appropriate technical 212.26 qualifications and experience and stakeholders, shall include in 212.27 the comprehensive assessment system, for each grade level to be 212.28 tested, a single statewide norm-referenced or 212.29 criterion-referenced test, or a combination of a norm-referenced 212.30 and a criterion-referenced test, which shall be highly 212.31 correlated with the state's graduation standards and 212.32 administered annually to all students in the third, fifth, and 212.33 eighth grades. The commissioner shall establish one or more 212.34 months during which schools shall administer the tests to 212.35 students each school year. Only Minnesota basic skills tests in 212.36 reading, mathematics, and writing shall fulfill students' 213.1 testing requirements for a passing state notation. 213.2 (b) In addition, at the secondary level, districts shall 213.3 assess student performance in all required learning areas and 213.4 selected required standards within each area of the profile of 213.5 learning. The testing instruments and testing process shall be 213.6 determined by the commissioner. The results shall be aggregated 213.7 at the site and district level. The testing shall be 213.8 administered beginning in the 1999-2000 school year and 213.9 thereafter. 213.10 (c) The comprehensive assessment system shall include an 213.11 evaluation of school site and school district performance levels 213.12 during the 1997-1998 school year and thereafter using an 213.13 established performance baseline developed from students' test 213.14 scores under this section that records, at a minimum, students' 213.15 unweighted mean test scores in each tested subject, a second 213.16 performance baseline that reports, at a minimum, the same 213.17 unweighted mean test scores of only those students enrolled in 213.18 the school by January 1 of the previous school year, and a third 213.19 performance baseline that reports the same unweighted test 213.20 scores of all students except those students receiving limited 213.21 English proficiency instruction. The evaluation also shall 213.22 record separately, in proximity to the performance baselines, 213.23 the percentages of students who are eligible to receive a free 213.24 or reduced price school meal, demonstrate limited English 213.25 proficiency, or are eligible to receive special education 213.26 services. 213.27 (d) In addition to the testing and reporting requirements 213.28 under paragraphs (a), (b), and (c), the commissioner, in213.29consultation with the state board of education,shall include 213.30 the following components in the statewide educational 213.31 accountability and public reporting system: 213.32 (1) uniform statewide testing of all third, fifth, eighth, 213.33 and post-eighth grade students with exemptions, only with parent 213.34 or guardian approval, from the testing requirement only for 213.35 those very few students for whom the student's individual 213.36 education plan team under sections 125A.05 and 125A.06, 214.1 determines that the student is incapable of taking a statewide 214.2 test, or a limited English proficiency student under section 214.3 124D.59, subdivision 2, if the student has been in the United 214.4 States for fewer than 12 months and for whom special language 214.5 barriers exist, such as the student's native language does not 214.6 have a written form or the district does not have access to 214.7 appropriate interpreter services for the student's native 214.8 language; 214.9 (2) educational indicators that can be aggregated and 214.10 compared across school districts and across time on a statewide 214.11 basis; 214.12 (3) students' scores on the American College Test; 214.13 (4) participation in the National Assessment of Educational 214.14 Progress so that the state can benchmark its performance against 214.15 the nation and other states, and, where possible, against other 214.16 countries, and contribute to the national effort to monitor 214.17 achievement; and 214.18 (5) basic skills and advanced competencies connecting 214.19 teaching and learning to high academic standards, assessment, 214.20 and transitions to citizenship and employment. 214.21 (e) Districts must report exemptions under paragraph (d), 214.22 clause (1), to the commissioner consistent with a format 214.23 provided by the commissioner. 214.24 (Effective Date: Section 2 (120B.30, subdivision 1) is 214.25 effective December 31, 1999.) 214.26 Sec. 3. Minnesota Statutes 1998, section 120B.35, is 214.27 amended to read: 214.28 120B.35 [STUDENT ACHIEVEMENT LEVELS.] 214.29 (a) Each school year, a school district must determine if 214.30 the student achievement levels at each school site meet state 214.31 expectations. If student achievement levels at a school site do 214.32 not meet state expectations for two out of three consecutive 214.33 school years, beginning with the1999-20002000-2001 school 214.34 year, the district must work with the school site to adopt a 214.35 plan to raise student achievement levels to state expectations. 214.36 The legislature will determine state expectations after 215.1 receiving a recommendation from the commissioner of children, 215.2 families, and learning. The commissioner must submitits215.3 recommendations to the legislature byDecember 15, 1998January 215.4 15, 2000. The recommended model must measure both yearly 215.5 progress against an established baseline and also make 215.6 comparisons to state expectations. 215.7 (b) The department must assist the district and the school 215.8 site in developing a plan to improve student achievement. The 215.9 plan must include parental involvement components. 215.10 Sec. 4. Minnesota Statutes 1998, section 121A.61, 215.11 subdivision 1, is amended to read: 215.12 Subdivision 1. [REQUIRED POLICY.] Each school board must 215.13 adopt a written districtwide school discipline policy which 215.14 includes written rules of conduct for students, minimum 215.15 consequences for violations of the rules, and grounds and 215.16 procedures for removal of a student from class. The policy must 215.17 be developed in consultation withthe participation of215.18 administrators, teachers, employees, pupils, parents, community 215.19 members, law enforcement agencies, county attorney offices, 215.20 social service agencies, and such other individuals or 215.21 organizations as the board determines appropriate. A school 215.22 site council may adopt additional provisions to the policy 215.23 subject to the approval of the school board. 215.24 Sec. 5. [121A.68] [CRISIS MANAGEMENT POLICY.] 215.25 Subdivision 1. [MODEL POLICY.] By September 1, 1999, the 215.26 commissioner shall maintain and make available to school boards 215.27 a model crisis management policy. 215.28 Subd. 2. [SCHOOL DISTRICT POLICY.] By January 15, 2000, a 215.29 school board must adopt a district crisis management policy to 215.30 address potential violent crisis situations in the district. 215.31 The policy must be developed in consultation with 215.32 administrators, teachers, employees, students, parents, 215.33 community members, law enforcement agencies, county attorney 215.34 offices, social service agencies, and any other appropriate 215.35 individuals or organizations. 215.36 Sec. 6. Minnesota Statutes 1998, section 122A.09, 216.1 subdivision 4, is amended to read: 216.2 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 216.3 rules to license public school teachers and interns subject to 216.4 chapter 14. 216.5 (b) The board must adopt rules requiring a person to 216.6 successfully complete a skills examination in reading, writing, 216.7 and mathematics as a requirement for initial teacher licensure. 216.8 Such rules must require college and universities offering a 216.9 board approved teacher preparation program to provide remedial 216.10 assistance to persons who did not achieve a qualifying score on 216.11 the skills examination, including those for whom English is a 216.12 second language. 216.13 (c) The board must adopt rules to approve teacher 216.14 preparation programs. The board, upon the request of a teacher 216.15 trainee seeking licensure or a licensed graduate of a teacher 216.16 preparation program, and subject to chapter 14, must hold a 216.17 hearing to resolve matters affecting the components of a teacher 216.18 preparation program. 216.19 (d) The board must provide the leadership and shall adopt 216.20 rules for the redesign of teacher education programs to 216.21 implement a research based, results-oriented curriculum that 216.22 focuses on the skills teachers need in order to be effective. 216.23 The board shall implement new systems of teacher preparation 216.24 program evaluation to assure program effectiveness based on 216.25 proficiency of graduates in demonstrating attainment of program 216.26 outcomes. 216.27 (e) The board must adopt rules requiring successful 216.28 completion of an examination of general pedagogical knowledge 216.29 and examinations of licensure-specific teaching skills. The 216.30 rules shall be effective on the dates determined by the board, 216.31 but not later thanJuly 1, 1999September 1, 2001. 216.32 (f) The board must adopt rules requiring teacher educators 216.33 to work directly with elementary or secondary school teachers in 216.34 elementary or secondary schools to obtain periodic exposure to 216.35 the elementary or secondary teaching environment. 216.36 (g) The board must grant licenses to interns and to 217.1 candidates for initial licenses. 217.2 (h) The board must design and implement an assessment 217.3 system which requires a candidate for an initial license and 217.4 first continuing license to demonstrate the abilities necessary 217.5 to perform selected, representative teaching tasks at 217.6 appropriate levels. 217.7 (i) The board must receive recommendations from local 217.8 committees as established by the board for the renewal of 217.9 teaching licenses. 217.10 (j) The board must grant life licenses to those who qualify 217.11 according to requirements established by the board, and suspend 217.12 or revoke licenses pursuant to sections 122A.20 and 214.10. The 217.13 board must not establish any expiration date for application for 217.14 life licenses. 217.15 (k) The board must adopt rules that require all licensed 217.16 teachers who are renewing their continuing license to include in 217.17 their renewal requirements further preparation in the areas of 217.18 using positive behavior interventions and in accommodating, 217.19 modifying, and adapting curricula, materials, and strategies to 217.20 appropriately meet the needs of individual students and ensure 217.21 adequate progress toward the state's graduation rule. The rules 217.22 adopted under this paragraph apply to teachers who renew their 217.23 licenses in year 2001 and later. 217.24 (l) In adopting rules to license public school teachers who 217.25 provide health-related services for disabled children, the board 217.26 shall adopt rules consistent with license or registration 217.27 requirements of the commissioner of health and the 217.28 health-related boards who license personnel who perform similar 217.29 services outside of the school. 217.30 (Effective Date: Section 6, paragraphs (c) and (e) 217.31 (122A.09, subdivision 4), are effective the day following final 217.32 enactment.) 217.33 Sec. 7. Minnesota Statutes 1998, section 122A.18, is 217.34 amended by adding a subdivision to read: 217.35 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] The board of 217.36 teaching may allow a person who is enrolled in and making 218.1 satisfactory progress in a board-approved teacher program and 218.2 who has successfully completed student teaching to be employed 218.3 as a short-call substitute teacher. 218.4 Sec. 8. Minnesota Statutes 1998, section 122A.18, is 218.5 amended by adding a subdivision to read: 218.6 Subd. 10. [READING STRATEGIES.] All colleges and 218.7 universities approved by the board of teaching to prepare 218.8 persons for classroom teacher licensure must include in their 218.9 teacher preparation programs reading best practices that enable 218.10 classroom teacher licensure candidates to know how to teach 218.11 reading, such as phonics or other research-based best practices. 218.12 Sec. 9. Minnesota Statutes 1998, section 122A.19, 218.13 subdivision 4, is amended to read: 218.14 Subd. 4. [TEACHER PREPARATION PROGRAMS.] For the purpose 218.15 of licensing bilingual and English as a second language 218.16 teachers, the board may approve programs at colleges or 218.17 universities designed for their trainingsubject to the approval218.18of the state board of education. 218.19 (Effective Date: Section 9 (122A.19, subdivision 4) is 218.20 effective December 31, 1999.) 218.21 Sec. 10. Minnesota Statutes 1998, section 122A.20, 218.22 subdivision 1, is amended to read: 218.23 Subdivision 1. [GROUNDS FOR REVOCATION, SUSPENSION, OR 218.24 DENIAL.] The board of teachingor the state board of education,218.25 or the commissioner, with the advice from an advisory task force 218.26 of supervisory personnel established under section 15.014, 218.27 whichever has jurisdiction over a teacher's licensure, may, on 218.28 the written complaint of the school board employing a teacher, a 218.29 teacher organization, or any other interested person, refuse to 218.30 issue, refuse to renew, suspend, or revoke a teacher's license 218.31 to teach for any of the following causes: 218.32 (1) Immoral character or conduct; 218.33 (2) Failure, without justifiable cause, to teach for the 218.34 term of the teacher's contract; 218.35 (3) Gross inefficiency or willful neglect of duty; or 218.36 (4) Failure to meet licensure requirements; or 219.1 (5) Fraud or misrepresentation in obtaining a license. 219.2 The written complaint must specify the nature and character 219.3 of the charges. For purposes of this subdivision, the board of 219.4 teaching is delegated the authority to suspend or revoke 219.5 coaching licensesunder the jurisdiction of the state board of219.6education. 219.7 (Effective Date: Section 10 (122A.20, subdivision 1) is 219.8 effective December 31, 1999.) 219.9 Sec. 11. Minnesota Statutes 1998, section 122A.20, 219.10 subdivision 2, is amended to read: 219.11 Subd. 2. [MANDATORY REPORTING.] A school board must report 219.12 to the board of teaching, the state board of education,or the 219.13 board of trustees of the Minnesota state colleges and 219.14 universities, whichever has jurisdiction over the teacher's 219.15 license, when its teacher is discharged or resigns from 219.16 employment after a charge is filed with the school board under 219.17 section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 219.18 7, or after charges are filed that are ground for discharge 219.19 under section 122A.40, subdivision 13, clauses (a), (b), (c), 219.20 (d), and (e), or when a teacher is suspended or resigns while an 219.21 investigation is pending under section 122A.40, subdivision 13, 219.22 clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 219.23 clauses (1), (2), and (3), and 7; or 626.556. The report must 219.24 be made to the appropriate licensing board within ten days after 219.25 the discharge, suspension, or resignation has occurred. The 219.26 licensing board to which the report is made must investigate the 219.27 report for violation of subdivision 1 and the reporting board 219.28 must cooperate in the investigation. Notwithstanding any 219.29 provision in chapter 13 or any law to the contrary, upon written 219.30 request from the licensing board having jurisdiction over the 219.31 teacher's license, a board or school superintendent shall 219.32 provide the licensing board with information about the teacher 219.33 from the district's files, any termination or disciplinary 219.34 proceeding, any settlement or compromise, or any investigative 219.35 file. Upon written request from the appropriate licensing 219.36 board, a board or school superintendent may, at the discretion 220.1 of the board or school superintendent, solicit the written 220.2 consent of a student and the student's parent to provide the 220.3 licensing board with information that may aid the licensing 220.4 board in its investigation and license proceedings. The 220.5 licensing board's request need not identify a student or parent 220.6 by name. The consent of the student and the student's parent 220.7 must meet the requirements of chapter 13 and Code of Federal 220.8 Regulations, title 34, section 99.30. The licensing board may 220.9 provide a consent form to the district. Any data transmitted to 220.10 any board under this section is private data under section 220.11 13.02, subdivision 12, notwithstanding any other classification 220.12 of the data when it was in the possession of any other agency. 220.13 The licensing board to which a report is made must transmit 220.14 to the attorney general's office any record or data it receives 220.15 under this subdivision for the sole purpose of having the 220.16 attorney general's office assist that board in its 220.17 investigation. When the attorney general's office has informed 220.18 an employee of the appropriate licensing board in writing that 220.19 grounds exist to suspend or revoke a teacher's license to teach, 220.20 that licensing board must consider suspending or revoking or 220.21 decline to suspend or revoke the teacher's license within 45 220.22 days of receiving a stipulation executed by the teacher under 220.23 investigation or a recommendation from an administrative law 220.24 judge that disciplinary action be taken. 220.25 (Effective Date: Section 11 (122A.20, subdivision 2) is 220.26 effective December 31, 1999.) 220.27 Sec. 12. Minnesota Statutes 1998, section 122A.21, is 220.28 amended to read: 220.29 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 220.30 Each application for the issuance, renewal, or extension of 220.31 a license to teach and each application for the issuance, 220.32 renewal, or extension of a license as supervisory personnel must 220.33 be accompanied by a processing fee in an amount set by the board 220.34 of teaching by rule.Each application for the issuance,220.35renewal, or extension of a license as supervisory personnel must220.36be accompanied by a processing fee in an amount set by the state221.1board of education by rule.The processing fee for a teacher's 221.2 license and for the licenses of supervisory personnel must be 221.3 paid to the executive secretary of the board of teaching.The221.4processing fee for the licenses of supervisory personnel must be221.5paid to the commissioner.The executive secretary of the board 221.6 of teachingand the commissionershall deposit the fees with the 221.7 state treasurer, as provided by law, and report each month to 221.8 the commissioner of finance the amount of fees collected. The 221.9 fees as set by theboardsboard are nonrefundable for applicants 221.10 not qualifying for a license. However, a fee must be refunded 221.11 by the state treasurer in any case in which the applicant 221.12 already holds a valid unexpired license. Theboardsboard may 221.13 waive or reduce fees for applicants who apply at the same time 221.14 for more than one license, even if the licenses are under the221.15jurisdiction of different boards. 221.16 (Effective Date: Section 12 (122A.21) is effective 221.17 December 31, 1999.) 221.18 Sec. 13. Minnesota Statutes 1998, section 122A.40, 221.19 subdivision 5, is amended to read: 221.20 Subd. 5. [PROBATIONARY PERIOD.] The first three 221.21 consecutive years of a teacher's first teaching experience in 221.22 Minnesota in a single district is deemed to be a probationary 221.23 period of employment, and after completion thereof, the 221.24 probationary period in each district in which the teacher is 221.25 thereafter employed shall be one year. The school board must 221.26 adopt a plan for written evaluation of teachers during the 221.27 probationary period. Evaluation must occur at least three times 221.28 each year for a teacher performing services on 120 or more 221.29 school days, at least two times each year for a teacher 221.30 performing services on 60 to 119 school days, and at least one 221.31 time each year for a teacher performing services on fewer than 221.32 60 school days. Days devoted to parent-teacher conferences, 221.33 teachers' workshops, and other staff development opportunities 221.34 and days on which a teacher is absent from school must not be 221.35 included in determining the number of school days on which a 221.36 teacher performs services. During the probationary period any 222.1 annual contract with any teacher may or may not be renewed as 222.2 the school board shall see fit. However, the board must give 222.3 any such teacher whose contract it declines to renew for the 222.4 following school year written notice to that effect beforeJune222.51August 1. If the teacher requests reasons for any nonrenewal 222.6 of a teaching contract, the board must give the teacher its 222.7 reason in writing, including a statement that appropriate 222.8 supervision was furnished describing the nature and the extent 222.9 of such supervision furnished the teacher during the employment 222.10 by the board, within ten days after receiving such request. The 222.11 school board may, after a hearing held upon due notice, 222.12 discharge a teacher during the probationary period for cause, 222.13 effective immediately, under section 122A.44. 222.14 Sec. 14. Minnesota Statutes 1998, section 122A.40, 222.15 subdivision 7, is amended to read: 222.16 Subd. 7. [TERMINATION OF CONTRACT AFTER PROBATIONARY 222.17 PERIOD.] A teacher who has completed a probationary period in 222.18 any district, and who has not been discharged or advised of a 222.19 refusal to renew the teacher's contract pursuant to subdivision 222.20 5, shall have a continuing contract with such district. 222.21 Thereafter, the teacher's contract must remain in full force and 222.22 effect, except as modified by mutual consent of the board and 222.23 the teacher, until terminated by a majority roll call vote of 222.24 the full membership of the board prior to April 1 upon one of 222.25 the grounds specified in subdivision 9 or prior toJuneAugust 1 222.26 upon one of the grounds specified in subdivision 10 or 11, or 222.27 until the teacher is discharged pursuant to subdivision 13, or 222.28 by the written resignation of the teacher submitted prior to 222.29 April 1. If an agreement as to the terms and conditions of 222.30 employment for the succeeding school year has not been adopted 222.31 pursuant to the provisions of sections 179A.01 to 179A.25 prior 222.32 to March 1, the teacher's right of resignation is extended to 222.33 the 30th calendar day following the adoption of said contract in 222.34 compliance with section 179A.20, subdivision 5. Such written 222.35 resignation by the teacher is effective as of June 30 if 222.36 submitted prior to that date and the teachers' right of 223.1 resignation for the school year then beginning shall cease on 223.2 July 15. Before a teacher's contract is terminated by the 223.3 board, the board must notify the teacher in writing and state 223.4 its ground for the proposed termination in reasonable detail 223.5 together with a statement that the teacher may make a written 223.6 request for a hearing before the board within 14 days after 223.7 receipt of such notification. If the grounds are those 223.8 specified in subdivision 9 or 13, the notice must also state a 223.9 teacher may request arbitration under subdivision 15. Within 14 223.10 days after receipt of this notification the teacher may make a 223.11 written request for a hearing before the board or an arbitrator 223.12 and it shall be granted upon reasonable notice to the teacher of 223.13 the date set for hearing, before final action is taken. If no 223.14 hearing is requested within such period, it shall be deemed 223.15 acquiescence by the teacher to the board's action. Such 223.16 termination shall take effect at the close of the school year in 223.17 which the contract is terminated in the manner aforesaid. Such 223.18 contract may be terminated at any time by mutual consent of the 223.19 board and the teacher and this section does not affect the 223.20 powers of a board to suspend, discharge, or demote a teacher 223.21 under and pursuant to other provisions of law. 223.22 Sec. 15. Minnesota Statutes 1998, section 122A.40, 223.23 subdivision 16, is amended to read: 223.24 Subd. 16. [DECISION.] After the hearing, the board must 223.25 issue a written decision and order. If the board orders 223.26 termination of a continuing contract or discharge of a teacher, 223.27 its decision must include findings of fact based upon competent 223.28 evidence in the record and must be served on the teacher, 223.29 accompanied by an order of termination or discharge, prior to 223.30 April 1 in the case of a contract termination for grounds 223.31 specified in subdivision 9, prior toJune 1August 1 for grounds 223.32 specified in subdivision 10 or 11, or within ten days after 223.33 conclusion of the hearing in the case of a discharge. If the 223.34 decision of the board or of a reviewing court is favorable to 223.35 the teacher, the proceedings must be dismissed and the decision 223.36 entered in the board minutes, and all references to such 224.1 proceedings must be excluded from the teacher's record file. 224.2 Sec. 16. Minnesota Statutes 1998, section 122A.41, 224.3 subdivision 4, is amended to read: 224.4 Subd. 4. [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 224.5 DISCHARGE OR DEMOTION.] After the completion of such 224.6 probationary period, without discharge, such teachers as are 224.7 thereupon reemployed shall continue in service and hold their 224.8 respective position during good behavior and efficient and 224.9 competent service and must not be discharged or demoted except 224.10 for cause after a hearing. 224.11 A probationary teacher is deemed to have been reemployed 224.12 for the ensuing school year, unless the school board in charge 224.13 of such school gave such teacher notice in writing beforeJune 1224.14 August 1 of the termination of such employment.In event of224.15such notice the employment terminates at the close of the school224.16sessions of the current school year.224.17 Sec. 17. Minnesota Statutes 1998, section 122A.60, 224.18 subdivision 1, is amended to read: 224.19 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 224.20 board must use the revenue authorized in section 122A.61 for 224.21 in-service education for programs under section 120B.22, 224.22 subdivision 2, or for staff development plans under this 224.23 section. The board must establishaan advisory staff 224.24 development committee to develop the plan, assist 224.25 sitedecision-makingprofessional development teams in 224.26 developing a site plan consistent with the goals of the plan, 224.27 and evaluate staff development efforts at the site level. A 224.28 majority of the advisory committee and the site professional 224.29 development team must be teachers representing various grade 224.30 levels, subject areas, and special education. The advisory 224.31 committee must also include nonteaching staff, parents, and 224.32 administrators. Districts must report staff development results 224.33 and expenditures to the commissioner in the form and manner 224.34 determined by the commissioner. The expenditure report must 224.35 include expenditures by the board for district level activities 224.36 and expenditures made by the staff. The report must provide a 225.1 breakdown of expenditures for (1) curriculum development and 225.2 programs, (2) in-service education, workshops, and conferences, 225.3 and (3) the cost of teachers or substitute teachers for staff 225.4 development purposes. Within each of these categories, the 225.5 report must also indicate whether the expenditures were incurred 225.6 at the district level or the school site level, and whether the 225.7 school site expenditures were made possible by the grants to 225.8 school sites that demonstrate exemplary use of allocated staff 225.9 development revenue. These expenditures are to be reported 225.10 using the UFARS system. The commissioner shall report the staff 225.11 development expenditure data to the education committees of the 225.12 legislature by February 15 each year. 225.13 Sec. 18. Minnesota Statutes 1998, section 122A.60, 225.14 subdivision 3, is amended to read: 225.15 Subd. 3. [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 225.16 development committee must adopt a staff development plan for 225.17 improving student achievementof education outcomes. The plan 225.18 must be consistent with education outcomes that the school board 225.19 determines. The plan must include ongoing staff development 225.20 activities that contribute toward continuous improvement in 225.21 achievement of the following goals: 225.22 (1) improve student achievement of state and local 225.23 education standards in all areas of the curriculum by using best 225.24 practices methods; 225.25 (2) effectively meet the needs of a diverse student 225.26 population, including at-risk children, children with 225.27 disabilities, and gifted children, within the regular classroom 225.28 and other settings; 225.29 (3) provide an inclusive curriculum for a racially, 225.30 ethnically, and culturally diverse student populationthat is225.31consistent with the state education diversity rule and the225.32district's education diversity plan; 225.33 (4) improve staffability to collaborate and consult with225.34one another and to resolve conflictscollaboration and develop 225.35 mentoring and peer review programs for new teachers; 225.36 (5) effectively teach and model violence prevention policy 226.1 and curriculum that address early intervention alternatives, 226.2 issues of harassment, and teach nonviolent alternatives for 226.3 conflict resolution; and 226.4 (6) provide teachers and other members of site-based 226.5 management teams with appropriate management and financial 226.6 management skills. 226.7 Sec. 19. [122A.705] [MINNESOTA NEW TEACHER PROJECT.] 226.8 Subdivision 1. [ESTABLISHMENT; PARTICIPATION.] The 226.9 Minnesota new teacher project is established in the department 226.10 of children, families, and learning to retain new teachers in 226.11 the profession and to provide models for supporting the 226.12 professional development of first-year and second-year 226.13 teachers. In order for a school district to participate in the 226.14 new teacher project, a school board and an exclusive 226.15 representative of the teachers in the district must agree to 226.16 participate in the new teacher project and to the district plan 226.17 under subdivision 2. 226.18 Subd. 2. [DISTRICT PLAN.] A district that participates in 226.19 the new teacher project must submit a plan for the project to 226.20 the commissioner for approval. The new teacher project plan 226.21 must be consistent with the knowledge and skills required in the 226.22 teacher licensure rules adopted by the board of teaching and the 226.23 state graduation requirements, and include curricula of best 226.24 practice activities such as mentoring, intensive summer 226.25 orientation, first-year and second-year staff development 226.26 workshops, peer review, mutual observation between new and 226.27 experienced teachers, consultation with national board certified 226.28 teachers, classroom management techniques, cultural diversity, 226.29 reading strategies, lighter workloads, and first-year 226.30 residency. The plan must include the participation of a teacher 226.31 preparation program approved by the board of teaching. 226.32 Subd. 3. [STATE MATCH.] A district that has an approved 226.33 new teacher project plan must receive $1,000 of state money for 226.34 each new teacher participating in the project. The district 226.35 must contribute $1,500 of district money for each new teacher 226.36 participating in the project. 227.1 Sec. 20. [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 227.2 GRANTS.] 227.3 A cooperative unit, through its governing board, may apply 227.4 for all competitive grants administered by agencies of the state 227.5 and other government or nongovernment sources. 227.6 Sec. 21. Minnesota Statutes 1998, section 123B.02, is 227.7 amended by adding a subdivision to read: 227.8 Subd. 1a. [CONTRACTS FOR SERVICES.] A school board may 227.9 contract with a public or private entity to provide 227.10 instructional and noninstructional services as provided in 227.11 subdivision 14, consistent with the district's collective 227.12 bargaining agreement. 227.13 Sec. 22. Minnesota Statutes 1998, section 123B.02, 227.14 subdivision 3, is amended to read: 227.15 Subd. 3. [LIMITATION ON PARTICIPATION AND FINANCIAL 227.16 SUPPORT.] (a) A district must not be required by any type of 227.17 formal or informal agreement except an agreement to provide 227.18 building space according to paragraph (f), including a joint 227.19 powers agreement, or membership in any cooperative unit defined 227.20 in section 123A.24, subdivision 2, to participate in or provide 227.21 financial support for the purposes of the agreement for a time 227.22 period in excess of four fiscal years, or the time period set 227.23 forth in this subdivision. Any agreement, part of an agreement, 227.24 or other type of requirement to the contrary is void. This 227.25 paragraph applies only to agreements entered into between July 227.26 1, 1993, and June 30, 1999. 227.27 (b) This subdivision shall not affect the continued 227.28 liability of a district for its share of bonded indebtedness or 227.29 other debt incurred as a result of any agreement before July 1, 227.30 1993. The district is liable only until the obligation or debt 227.31 is discharged and only according to the payment schedule in 227.32 effect on July 1, 1993, except that the payment schedule may be 227.33 altered for the purpose of restructuring debt or refunding bonds 227.34 outstanding on July 1, 1993, if the annual payments of the 227.35 district are not increased and if the total obligation of the 227.36 school district for its share of outstanding bonds or other debt 228.1 is not increased. 228.2 (c) To cease participating in or providing financial 228.3 support for any of the services or activities relating to the 228.4 agreement or to terminate participation in the agreement, the 228.5 board must adopt a resolution and notify other parties to the 228.6 agreement of its decision on or before February 1 of any year. 228.7 The cessation or withdrawal shall be effective June 30 of the 228.8 same year except that for a member of an education district 228.9 organized under sections 123A.15 to 123A.19 or an intermediate 228.10 district organized under chapter 136D, cessation or withdrawal 228.11 shall be effective June 30 of the following fiscal year. At the 228.12 option of the board, cessation or withdrawal may be effective 228.13 June 30 of the following fiscal year for a district 228.14 participating in any type of agreement. 228.15 (d) Before issuing bonds or incurring other debt, the 228.16 governing body responsible for implementing the agreement must 228.17 adopt a resolution proposing to issue bonds or incur other debt 228.18 and the proposed financial effect of the bonds or other debt 228.19 upon each participating district. The resolution must be 228.20 adopted within a time sufficient to allow the board to adopt a 228.21 resolution within the time permitted by this paragraph and to 228.22 comply with the statutory deadlines set forth in sections 228.23 122A.40, 122A.41, and 123A.33. The governing body responsible 228.24 for implementing the agreement shall notify each participating 228.25 board of the contents of the resolution. Within 120 days of 228.26 receiving the resolution of the governing body, the school board 228.27 of the participating district shall adopt a resolution stating: 228.28 (1) its concurrence with issuing bonds or incurring other 228.29 debt; 228.30 (2) its intention to cease participating in or providing 228.31 financial support for the service or activity related to the 228.32 bonds or other debt; or 228.33 (3) its intention to terminate participation in the 228.34 agreement. 228.35 A board adopting a resolution according to clause (1) is 228.36 liable for its share of bonded indebtedness or other debt as 229.1 proposed by the governing body implementing the agreement. A 229.2 school board adopting a resolution according to clause (2) is 229.3 not liable for the bonded indebtedness or other debt, as 229.4 proposed by the governing body, related to the services or 229.5 activities in which the district ceases participating or 229.6 providing financial support. A board adopting a resolution 229.7 according to clause (3) is not liable for the bonded 229.8 indebtedness or other debt proposed by the governing body 229.9 implementing the agreement. 229.10 (e) After July 1, 1993, a district is liable according to 229.11 paragraph (d) for its share of bonded indebtedness or other debt 229.12 incurred by the governing body implementing the agreement to the 229.13 extent that the bonds or other debt are directly related to the 229.14 services or activities in which the district participates or for 229.15 which the district provides financial support. The district has 229.16 continued liability only until the obligation or debt is 229.17 discharged and only according to the payment schedule in effect 229.18 at the time the governing body implementing the agreement 229.19 provides notice to the school board, except that the payment 229.20 schedule may be altered for the purpose of refunding the 229.21 outstanding bonds or restructuring other debt if the annual 229.22 payments of the district are not increased and if the total 229.23 obligation of the district for the outstanding bonds or other 229.24 debt is not increased. 229.25 (f) A district that is a member of a cooperative unit as 229.26 defined in section 123A.24, subdivision 2, may obligate itself 229.27 to participate in and provide financial support for an agreement 229.28 with a cooperative unit to provide school building space for a 229.29 term not to exceed two years with an option on the part of the 229.30 district to renew for an additional two years. 229.31 (g) Notwithstanding any limitations imposed under this 229.32 subdivision, a school district may, according to section 229.33 123B.51, subdivision 4, enter into a lease of all or a portion 229.34 of a schoolhouse that is not needed for school purposes, 229.35 including, but not limited to, a lease with a term of more than 229.36 one year. 230.1 Sec. 23. Minnesota Statutes 1998, section 123B.195, is 230.2 amended to read: 230.3 123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 230.4 Notwithstanding section 471.88, subdivision 5, a school 230.5 board member may be newly employed or may continue to be 230.6 employed by a school district as an employee only if there is a 230.7 reasonable expectation at the beginning of the fiscal year or at 230.8 the time the contract is entered into or extended that the 230.9 amount to be earned by that officer under that contract or 230.10 employment relationship will not exceed $5,000 in that fiscal 230.11 year. Notwithstanding section 122A.40 or 122A.41 or other law, 230.12 if the officer does not receiveunanimousmajority approval to 230.13 be initially employed or to continue in employment at a meeting 230.14 at which all board members are present, that employment is 230.15 immediately terminated and that officer has no further rights to 230.16 employment while serving as a school board member in the 230.17 district. 230.18 Sec. 24. Minnesota Statutes 1998, section 123B.77, 230.19 subdivision 4, is amended to read: 230.20 Subd. 4. [BUDGET APPROVAL.] Prior to July 1 of each year, 230.21 the board of each district must approve and adopt its revenue 230.22 and expenditure budgets for the next school year. The budget 230.23 document so adopted must be considered an 230.24 expenditure-authorizing or appropriations document. No funds 230.25 shall be expended by any board or district for any purpose in 230.26 any school year prior to the adoption of the budget document 230.27 which authorizes that expenditure, or prior to an amendment to 230.28 the budget document by the board to authorize the expenditure. 230.29 Expenditures of funds in violation of this subdivision shall be 230.30 considered unlawful expenditures. Prior to the appropriation of 230.31 revenue for the next school year in the initial budget, the 230.32 board shall calculate the general education revenue, basic 230.33 skills revenue, and referendum revenue for that year that it 230.34 estimates will be generated by the pupils in attendance at each 230.35 site, and shall inform each site of that estimate and report 230.36 this information to the department of children, families, and 231.1 learning. 231.2 Sec. 25. Minnesota Statutes 1998, section 123B.83, 231.3 subdivision 4, is amended to read: 231.4 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative 231.5 unappropriated operating fund balance as defined in section 231.6 126C.01, subdivision 11, calculated in accordance with the 231.7 uniform financial accounting and reporting standards for 231.8 Minnesota school districts, as of June 30 each year, is more 231.9 than 2-1/2 percent of the year's expenditure amount, the 231.10 district must, prior to January 31 of the next fiscal year, 231.11 submit a special operating plan to reduce the district's deficit 231.12 expenditures to the commissioner for approval. The commissioner 231.13 may also require the district to provide evidence that the 231.14 district meets and will continue to meet allof the curriculum231.15 high school graduation requirementsof the state board. 231.16 Notwithstanding any other law to the contrary, a district 231.17 submitting a special operating plan to the commissioner under 231.18 this clause which is disapproved by the commissioner must not 231.19 receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 231.20 124D, 125A, 126C, and 127A until a special operating plan of the 231.21 district is so approved. 231.22 (2) A district must receive aids pending the approval of 231.23 its special operating plan under clause (1). A district which 231.24 complies with its approved operating plan must receive aids as 231.25 long as the district continues to comply with the approved 231.26 operating plan. 231.27 (Effective Date: Section 25 (123B.83, subdivision 4) is 231.28 effective December 31, 1999.) 231.29 Sec. 26. Minnesota Statutes 1998, section 123B.90, 231.30 subdivision 2, is amended to read: 231.31 Subd. 2. [STUDENT TRAINING.] (a) Each district must 231.32 provide public school pupils enrolled in grades kindergarten 231.33 through 10 with age-appropriate school bus safety training. The 231.34 training must be results-oriented and shall consist of both 231.35 classroom instruction and practical training using a school 231.36 bus. Upon completing the training, a student shall be able to 232.1 demonstrate knowledge and understanding of at least the 232.2 following competencies and concepts: 232.3 (1) transportation by school bus is a privilege and not a 232.4 right; 232.5 (2) district policies for student conduct and school bus 232.6 safety; 232.7 (3) appropriate conduct while on the school bus; 232.8 (4) the danger zones surrounding a school bus; 232.9 (5) procedures for safely boarding and leaving a school 232.10 bus; 232.11 (6) procedures for safe street or road crossing;and232.12 (7) school bus evacuation and other emergency procedures; 232.13 and 232.14 (8) appropriate training on the use of lap belts or lap and 232.15 shoulder belts, if the district uses buses equipped with lap 232.16 belts or lap and shoulder belts. 232.17 (b) Each nonpublic school located within the district must 232.18 provide all nonpublic school pupils enrolled in grades 232.19 kindergarten through 10 who are transported by school bus at 232.20 public expense and attend school within the district's 232.21 boundaries with training as required in paragraph (a). The 232.22 school district shall make a bus available for the practical 232.23 training if the district transports the nonpublic students. 232.24 Each nonpublic school shall provide the instruction. 232.25 (c) All students enrolled in grades kindergarten through 3 232.26 who are transported by school bus and are enrolled during the 232.27 first or second week of school must demonstrate achievement of 232.28 the school bus safety training competencies by the end of the 232.29 third week of school. All students enrolled in grades 4 through 232.30 10 who are transported by school bus and are enrolled during the 232.31 first or second week of school must demonstrate achievement of 232.32 the competencies by the end of the sixth week of school. 232.33 Students enrolled in grades kindergarten through 10 who enroll 232.34 in a school after the second week of school and are transported 232.35 by school bus shall undergo school bus safety training and 232.36 demonstrate achievement of the school bus safety competencies 233.1 within four weeks of the first day of attendance. The pupil 233.2 transportation safety director in each district must certify to 233.3 the commissioner annually that all students transported by 233.4 school bus within the district have satisfactorily demonstrated 233.5 knowledge and understanding of the school bus safety 233.6 competencies according to this section or provide an explanation 233.7 for a student's failure to demonstrate the competencies. The 233.8 principal or other chief administrator of each nonpublic school 233.9 must certify annually to the public transportation safety 233.10 director of the district in which the school is located that all 233.11 of the school's students transported by school bus at public 233.12 expense have received training. A district may deny 233.13 transportation to a student who fails to demonstrate the 233.14 competencies, unless the student is unable to achieve the 233.15 competencies due to a disability, or to a student who attends a 233.16 nonpublic school that fails to provide training as required by 233.17 this subdivision. 233.18 (d) A district and a nonpublic school with students 233.19 transported by school bus at public expense must, to the extent 233.20 possible, provide kindergarten pupils with bus safety training 233.21 before the first day of school. 233.22 (e) A district and a nonpublic school with students 233.23 transported by school bus at public expense must also provide 233.24 student safety education for bicycling and pedestrian safety, 233.25 for students enrolled in grades kindergarten through 5. 233.26 (f) A district and a nonpublic school with students 233.27 transported by school bus at public expense must make reasonable 233.28 accommodations for the school bus, bicycle, and pedestrian 233.29 safety training of pupils known to speak English as a second 233.30 language and pupils with disabilities. 233.31 Sec. 27. Minnesota Statutes 1998, section 123B.90, 233.32 subdivision 3, is amended to read: 233.33 Subd. 3. [MODEL TRAINING PROGRAM.] The commissioner shall 233.34 develop a comprehensive model school bus safety training program 233.35 for pupils who ride the bus that includes bus safety curriculum 233.36 for both classroom and practical instruction, methods for 234.1 assessing attainment of school bus safety competencies, and 234.2 age-appropriate instructional materials. The model training 234.3 program for students riding buses with lap belts or lap and 234.4 shoulder belts must include information on the appropriate use 234.5 of lap belts or lap and shoulder belts. The program must be 234.6 adaptable for use by students with disabilities. 234.7 Sec. 28. Minnesota Statutes 1998, section 123B.91, 234.8 subdivision 1, is amended to read: 234.9 Subdivision 1. [COMPREHENSIVE POLICY.] Each district must 234.10 develop and implement a comprehensive, written policy governing 234.11 pupil transportation safety, including transportation of 234.12 nonpublic school students, when applicable. The policy shall, 234.13 at minimum, contain: 234.14 (1) provisions for appropriate student bus safety training 234.15 under section 123B.90; 234.16 (2) rules governing student conduct on school buses and in 234.17 school bus loading and unloading areas; 234.18 (3) a statement of parent or guardian responsibilities 234.19 relating to school bus safety; 234.20 (4) provisions for notifying students and parents or 234.21 guardians of their responsibilities and the rules, including the 234.22 district's seat belt policy, if applicable; 234.23 (5) an intradistrict system for reporting school bus 234.24 accidents or misconduct and a system for dealing with local law 234.25 enforcement officials in cases of criminal conduct on a school 234.26 bus; 234.27 (6) a discipline policy to address violations of school bus 234.28 safety rules, including procedures for revoking a student's bus 234.29 riding privileges in cases of serious or repeated misconduct; 234.30 (7) a system for integrating school bus misconduct records 234.31 with other discipline records; 234.32 (8) a statement of bus driver duties; 234.33 (9) planned expenditures for safety activities under 234.34 section 123B.89 and, where applicable, provisions governing bus 234.35 monitor qualifications, training, and duties; 234.36 (10) rules governing the use and maintenance of type III 235.1 vehicles, drivers of type III vehicles, qualifications to drive 235.2 a type III vehicle, qualifications for a type III vehicle and 235.3 the circumstances under which a student may be transported in a 235.4 type III vehicle; 235.5 (11) operating rules and procedures; 235.6 (12) provisions for annual bus driver in-service training 235.7 and evaluation; 235.8 (13) emergency procedures; 235.9 (14) a system for maintaining and inspecting equipment; 235.10 (15) requirements of the school district, if any, that 235.11 exceed state law minimum requirements for school bus operations; 235.12 and 235.13 (16) requirements for basic first aid training, which must 235.14 include the Heimlich maneuver and procedures for dealing with 235.15 obstructed airways, shock, bleeding, and seizures. 235.16 Districts are encouraged to use the model policy developed 235.17 by the Minnesota school boards association, the department of 235.18 public safety, and the department of children, families, and 235.19 learning, as well as the current edition of the "National 235.20 Standards for School Buses and Operations" published by the 235.21 National Safety Council, in developing safety policies. Each 235.22 district shall review its policy annually and make appropriate 235.23 amendments, which must be submitted to the school bus safety 235.24 advisory committee within one month of approval by the school 235.25 board. 235.26 Sec. 29. Minnesota Statutes 1998, section 124D.03, is 235.27 amended by adding a subdivision to read: 235.28 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 235.29 terminate the enrollment of a nonresident student enrolled under 235.30 this section or section 124D.07 or 124D.08 at the end of a 235.31 school year if the student meets the definition of a habitual 235.32 truant under section 260.015, subdivision 19, the student has 235.33 been provided appropriate services under chapter 260A, and the 235.34 student's case has been referred to juvenile court. A district 235.35 may also terminate the enrollment of a nonresident student over 235.36 the age of 16 enrolled under this section if the student is 236.1 absent without lawful excuse for one or more periods on 15 236.2 school days and has not lawfully withdrawn from school under 236.3 section 120A.22, subdivision 8. 236.4 Sec. 30. Minnesota Statutes 1998, section 124D.86, 236.5 subdivision 1, is amended to read: 236.6 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 236.7 under this section must be used for programs established under a 236.8 desegregation planmandated by the state boardor under court 236.9 order, to increase learning opportunities and reduce the 236.10 learning gap between learners living in high concentrations of 236.11 poverty and their peers. 236.12 (Effective Date: Section 30 (124D.86, subdivision 1) is 236.13 effective December 31, 1999.) 236.14 Sec. 31. Minnesota Statutes 1998, section 124D.86, 236.15 subdivision 3, is amended to read: 236.16 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and 236.17 later fiscal years, integration revenue equals the following 236.18 amounts: 236.19 (1) for independent school district No. 709, Duluth, $193 236.20 times the resident pupil units for the school year; 236.21 (2) for independent school district No. 625, St. Paul, $427 236.22 times the resident pupil units for the school year; 236.23 (3) for special school district No. 1, Minneapolis, $523 236.24 times the resident pupil units for the school year; and 236.25 (4) for a district not listed in clause (1), (2), or (3) 236.26 that is required to implement a plan according to the 236.27 requirements of Minnesota Rules,parts 3535.0200 to 3535.2200,236.28 the lesser of the actual cost of implementing the plan during 236.29 the fiscal year or $93 times the resident pupil units for the 236.30 school year. 236.31 (Effective Date: Section 31 (124D.86, subdivision 3) is 236.32 effective December 31, 1999.) 236.33 Sec. 32. Minnesota Statutes 1998, section 124D.89, 236.34 subdivision 1, is amended to read: 236.35 Subdivision 1. [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 236.36 cultural exchange grant program is established to develop and 237.1 create opportunities for children and staff of different ethnic, 237.2 racial, and other cultural backgrounds to experience educational 237.3 and social exchange.Student and staff exchanges under this237.4section may only take place between a district with a237.5desegregation plan approved by the state board of education and237.6a district without a desegregation plan.Participating school 237.7 districts shall offersummerprograms for credit with the goals 237.8 set forth in paragraphs (b) to (e). 237.9 (b) The program must develop curriculum reflective of 237.10 particular ethnic, racial, and other cultural aspects of various 237.11 demographic groups in the state. 237.12 (c) The program must develop immersion programs that are 237.13 coordinated with the programs offered in paragraph (b). 237.14 (d) The program must create opportunities for students from 237.15 across the state to enroll insummerprograms in districts other 237.16 than the one of residence, or in other schools within their 237.17 district of residence. 237.18 (e) The program must create opportunities for staff 237.19 exchanges on a cultural basis. 237.20 (Effective Date: Section 32 (124D.89, subdivision 1) is 237.21 effective December 31, 1999.) 237.22 Sec. 33. Minnesota Statutes 1998, section 124D.94, 237.23 subdivision 3, is amended to read: 237.24 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 237.25 the foundation shall consist of the commissioner of children, 237.26 families, and learning, a member of the state board of education237.27selected by the state board who shall serve as chairand 20 237.28 members to be appointed by the governor. Of the 20 members 237.29 appointed by the governor, eight shall represent a variety of 237.30 education groups and 12 shall represent a variety of business 237.31 groups. The members of the board of directors shall select one 237.32 member to serve as chair. The commissioner of children, 237.33 families, and learning shall serve as secretary for the board of 237.34 directors and provide administrative support to the foundation. 237.35 An executive committee of the foundation board composed of the 237.36 board officers and chairs of board committees, may only advise 238.1 and make recommendations to the foundation board. 238.2 (Effective Date: Section 33 (124D.94, subdivision 3) is 238.3 effective December 31, 1999.) 238.4 Sec. 34. Minnesota Statutes 1998, section 125A.09, 238.5 subdivision 11, is amended to read: 238.6 Subd. 11. [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 238.7 commissioner must select an individual who has the 238.8 qualifications enumerated in this subdivision to serve as the 238.9 hearing review officer: 238.10 (1) the individual must be knowledgeable and impartial; 238.11 (2) the individual must not have a personal interest in or 238.12 specific involvement with the student who is a party to the 238.13 hearing; 238.14 (3) the individual must not have been employed as an 238.15 administrator by the district that is a party to the hearing; 238.16 (4) the individual must not have been involved in the 238.17 selection of the administrators of the district that is a party 238.18 to the hearing; 238.19 (5) the individual must not have a personal, economic, or 238.20 professional interest in the outcome of the hearing other than 238.21 the proper administration of the federal and state laws, rules, 238.22 and policies; 238.23 (6) the individual must not have substantial involvement in 238.24 the development of a state or local policy or procedures that 238.25 are challenged in the appeal; 238.26 (7) the individual is not a current employee or board 238.27 member of a Minnesota public school district, education 238.28 district, intermediate unit or regional education agency,or the 238.29 department, and the state board of education; and 238.30 (8) the individual is not a current employee or board 238.31 member of a disability advocacy organization or group. 238.32 (Effective Date: Section 34 (125A.09, subdivision 11) is 238.33 effective December 31, 1999.) 238.34 Sec. 35. Minnesota Statutes 1998, section 127A.05, 238.35 subdivision 1, is amended to read: 238.36 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 239.1 shall be under the administrative control of the commissioner of 239.2 children, families, and learning which office is 239.3 established.The commissioner shall be the secretary of the239.4state board.The governor shall appoint the commissioner under 239.5 the provisions of section 15.06. 239.6 The commissioner shall be a person who possesses 239.7 educational attainment and breadth of experience in the 239.8 administration of public education and of the finances 239.9 pertaining thereto commensurate with the spirit and intent of 239.10 this code. Notwithstanding any other law to the contrary, the 239.11 commissioner may appoint two deputy commissioners who shall 239.12 serve in the unclassified service. The commissioner shall also 239.13 appoint other employees as may be necessary for the organization 239.14 of the department. The commissioner shall perform such duties 239.15 as the law andtherulesof the state boardmay provide and be 239.16 held responsible for the efficient administration and discipline 239.17 of the department. The commissionershall make recommendations239.18to the board and beis charged with the execution of powers and 239.19 dutieswhich the state board may prescribe, from time to time,239.20 to promote public education in the state,and to safeguard the 239.21 finances pertaining thereto, and to enable the state board to239.22carry out its duties. 239.23 (Effective Date: Section 35 (127A.05, subdivision 1) is 239.24 effective December 31, 1999.) 239.25 Sec. 36. [127A.25] [SURVEY OF DISTRICTS.] 239.26 The commissioner of children, families, and learning shall 239.27 survey the state's school districts and report to the education 239.28 committees of the legislature by January 15 of each odd-numbered 239.29 year on the status of the teacher shortage and the substitute 239.30 teacher shortage, including shortages in subject areas and 239.31 regions of the state. The report must also include how 239.32 districts are making progress in hiring teachers and substitutes 239.33 in the areas of shortage. 239.34 Sec. 37. Minnesota Statutes 1998, section 127A.41, 239.35 subdivision 5, is amended to read: 239.36 Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 240.1 DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.]A reduction of aid240.2under this section may be appealed to the state board of240.3education and its decision shall be final.Public schools shall 240.4 at all times be open to the inspection of the commissioner. The 240.5 accounts and records of any district must be open to inspection 240.6 by the state auditor,the state board,or the commissioner for 240.7 the purpose of audits conducted under this section. Each 240.8 district shall keep for a minimum of three years at least the 240.9 following: (1) identification of the annual session days held, 240.10 together with a record of the length of each session day, (2) a 240.11 record of each pupil's daily attendance, with entrance and 240.12 withdrawal dates, and (3) identification of the pupils 240.13 transported who are reported for transportation aid. 240.14 (Effective Date: Section 37 (127A.41, subdivision 5) is 240.15 effective December 31, 1999.) 240.16 Sec. 38. Minnesota Statutes 1998, section 127A.42, 240.17 subdivision 5, is amended to read: 240.18 Subd. 5. [DISPUTE VIOLATIONS; HEARING.] The board to which 240.19 such notice is given may, by a majority vote of the whole board, 240.20 decide to dispute that the specified violation exists or that 240.21 the time allowed is reasonable or the correction specified is 240.22 correct, or that the commissioner may reduce aids. The board 240.23 must give the commissioner written notice of the decision. If 240.24 the commissioner, after further investigation as the 240.25 commissioner deems necessary, adheres to the previous 240.26 notice,the board shall be entitled to a hearing by the state240.27boardthe commissioner shall notify the school board of its 240.28 decision.The state board must set a hearing time and place and240.29the board of the district must be given notice by mail. The240.30state board must adopt rules governing the proceedings for240.31hearings. The hearings must be designed to give a full and fair240.32hearing and permit interested parties an opportunity to produce240.33evidence relating to the issues involved. The rules may provide240.34that any question of fact to be determined at the hearing may be240.35referred to one or more members of the board or to an employee240.36of the state board acting as a referee to hear evidence and241.1report the testimony taken to the state board. The state board,241.2or a person designated to receive evidence at a hearing, shall241.3have the same right to issue subpoenas and administer oaths and241.4parties to the hearing shall have the same right to subpoenas241.5issued as are allowed for proceedings before the industrial241.6commission. A stenographic record must be made of all testimony241.7given and other proceedings during the hearing. If practicable,241.8rules governing admission of evidence in courts shall apply to241.9the hearing. The decision of the state board must be in writing241.10and the controlling facts upon which the decision is made must241.11be stated in sufficient detail to apprise the parties and the241.12reviewing court of the basis and reason for the decision. The241.13decision must be confined to whether any of the specified241.14violations existed at the date of the commissioner's first241.15notice, whether the violations were corrected within the time241.16permitted, and whether the violations require reduction of the241.17state aids under this section.241.18 (Effective Date: Section 38 (127A.42, subdivision 5) is 241.19 effective December 31, 1999.) 241.20 Sec. 39. Minnesota Statutes 1998, section 127A.42, 241.21 subdivision 6, is amended to read: 241.22 Subd. 6. [VIOLATION; AID REDUCTION.] The commissioner 241.23 shall not reduce state aids payable to the district if the 241.24 violation specified is corrected within the time permitted, or 241.25 if the commissioner on being notified of the district board's 241.26 decision to dispute decides the violation does not exist, or if241.27the state board decides after hearing no violation specified in241.28the commissioner's notice existed at the time of the notice, or241.29that the violations were corrected within the time permitted. 241.30 Otherwise state aids payable to the district for the year in 241.31 which the violation occurred shall be reduced as follows: The 241.32 total amount of state aids to which the district may be entitled 241.33 shall be reduced in the proportion that the period during which 241.34 a specified violation continued, computed from the last day of 241.35 the time permitted for correction, bears to the total number of 241.36 days school is held in the district during the year in which a 242.1 violation exists, multiplied by 60 percent of the basic revenue, 242.2 as defined in section 126C.10, subdivision 2, of the district 242.3 for that year. 242.4 (Effective Date: Section 39 (127A.42, subdivision 6) is 242.5 effective December 31, 1999.) 242.6 Sec. 40. Minnesota Statutes 1998, section 127A.60, 242.7 subdivision 1, is amended to read: 242.8 Subdivision 1. [DEPARTMENT.] A state department of 242.9 children, families, and learning is hereby createdwhich shall242.10be maintained under the direction of a state board of education242.11composed of nine representative citizens of the state, at least242.12one of whom shall reside in each congressional district in the242.13state. 242.14Of the nine representative citizens of the state who are242.15appointed to the state board of education not less than three242.16members thereof shall previously thereto have served as an242.17elected member of a board of education of a school district242.18however organized.242.19The members of the state board shall be appointed by the242.20governor, with the advice and consent of the senate. One member242.21shall be chosen annually as president, but no member shall serve242.22as president more than three consecutive years. The state board242.23shall hold its annual meeting in August. It shall hold meetings242.24on dates and at places as it designates. No member shall hold242.25any public office, or represent or be employed by any board of242.26education or school district, public or private, and shall not242.27voluntarily have any personal financial interest in any contract242.28with a board of education or school district, or be engaged in242.29any capacity where a conflict of interest may arise.242.30 (Effective Date: Section 40 (127A.60, subdivision 1) is 242.31 effective December 31, 1999.) 242.32 Sec. 41. Minnesota Statutes 1998, section 127A.66, 242.33 subdivision 2, is amended to read: 242.34 Subd. 2. [ADMINISTRATIVE RULES.] Thestate board242.35 commissioner may adopt new rules and amend them or amend anyof242.36itsexisting rules only under specific authority and consistent 243.1 with the requirements of chapter 14. Thestate board243.2 commissioner may repeal any ofitsthe commissioner's existing 243.3 rules. Notwithstanding the provisions of section 14.05, 243.4 subdivision 4, thestate boardcommissioner may grant a variance 243.5 toitsthe commissioner's rules upon application by a school 243.6 district for purposes of implementing experimental programs in 243.7 learning or school management. This subdivision shall not 243.8 prohibit thestate boardcommissioner from making technical 243.9 changes or corrections toitsthe commissioner's rules. 243.10 (Effective Date: Section 41 (127A.66, subdivision 2) is 243.11 effective December 31, 1999.) 243.12 Sec. 42. Minnesota Statutes 1998, section 128C.01, 243.13 subdivision 4, is amended to read: 243.14 Subd. 4. [BOARD.] (a) The league must have a 20-member 243.15 governing board. 243.16 (1) The governor must appoint four members according to 243.17 section 15.0597. Each of the four appointees must be a parent. 243.18 At least one of them must be an American Indian, an Asian, a 243.19 Black, or a Hispanic. 243.20 (2) The Minnesota association of secondary school 243.21 principals must appoint two of its members. 243.22 (3) The remaining 14 members must be selected according to 243.23 league bylaws. 243.24 (b) The terms, compensation, removal of members, and the 243.25 filling of membership vacancies are governed by section 15.0575, 243.26 except that the four-year terms begin on August 1 and end on 243.27 July 31. As provided by section 15.0575, members who are 243.28 full-time state employees or full-time employees of school 243.29 districts or other political subdivisions of the state may not 243.30 receive any per diem payment for service on the board. 243.31 Sec. 43. Minnesota Statutes 1998, section 128C.02, is 243.32 amended by adding a subdivision to read: 243.33 Subd. 9. [PURCHASING.] (a) In purchasing goods and 243.34 services, the league must follow all laws that apply to school 243.35 districts under sections 123B.52 and 471.345. 243.36 (b) The league may not enforce any national rule that 244.1 directs or controls school purchasing of athletic supplies and 244.2 equipment. 244.3 Sec. 44. [128C.075] [COOPERATIVE SPONSORSHIPS.] 244.4 An interscholastic conference or other entity must not 244.5 adopt a policy that limits a school board's power to enter into 244.6 a cooperative sponsorship agreement. 244.7 Sec. 45. Minnesota Statutes 1998, section 128C.12, 244.8 subdivision 1, is amended to read: 244.9 Subdivision 1. [DUES AND EVENTS REVENUE.] The state 244.10 auditor annually must examine the accounts of, and audit all 244.11 money paid to, the state high school league by its members. The 244.12 audit must include financial and compliance issues. The state 244.13 auditor must also audit all money derived from any event 244.14 sponsored by the league. League audits must include audits of 244.15 administrative regions of the league. The league and its 244.16 administrative regions may not contract with private auditors. 244.17The scope of the state auditor's examinations of the league must244.18be agreed upon by the board and the state auditor, provided that244.19all requirements of this section must be met.244.20 Sec. 46. Minnesota Statutes 1998, section 128C.20, 244.21 subdivision 1, is amended to read: 244.22 Subdivision 1. [ANNUALLY.] Each year the commissioner of 244.23 children, families, and learning shall obtain and review the 244.24 following information about the league: 244.25 (1) an accurate and concise summary of the annual financial 244.26 and compliance audit prepared by the state auditor that includes 244.27 information about the compensation of and the expenditures by 244.28 the executive director of the league and league staff; 244.29 (2) a list of all complaints filed with the league and all 244.30 lawsuits filed against the league and the disposition of those 244.31 complaints and lawsuits; 244.32 (3) an explanation of the executive director's performance 244.33 review; 244.34 (4) information about the extent to which the league has 244.35 implemented its affirmative action policy, its comparable worth 244.36 plan, and its sexual harassment and violence policy and rules; 245.1 and 245.2 (5) an evaluation of any proposed changes in league policy. 245.3 The commissioner may examine any league activities or 245.4 league-related issues when the commissioner believes this review 245.5 is warranted. 245.6 Sec. 47. Minnesota Statutes 1998, section 128C.20, 245.7 subdivision 2, is amended to read: 245.8 Subd. 2. [RECOMMEND LAWSRECOMMENDATIONS.] The board of 245.9 directors shall submit any proposed changes in league bylaws or 245.10 policies to the commissioner for review and comment at least 30 245.11 days before the effective date of these bylaws or policies. The 245.12 commissioner shall review and report to the board of directors, 245.13 the representative assembly, and the chairs of the house and 245.14 senate government operations and education committees on the 245.15 proposed changes within seven days of completing the review and 245.16 comment. The commissioner may recommend to the legislature 245.17 whether any legislation is made necessary by league activities. 245.18 Sec. 48. Minnesota Statutes 1998, section 136D.281, 245.19 subdivision 4, is amended to read: 245.20 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 245.21 boardshall notmay sell and issue bonds for acquisition or 245.22 betterment purposes if: (1) each member school district board 245.23 has adopted a resolution authorizing the project; (2) the 245.24 intermediate board has prepared and published in a newspaper of 245.25 general circulation in the district a notice of the public 245.26 meeting on the intermediate district's intent to sell bonds; and 245.27 (3) the intermediate board has adopted a resolution authorizing 245.28 the bonds. The resolution becomes final unless within 30 days 245.29 after the meeting where the resolution was adopted a petition 245.30 requesting an election signed by a number of qualified voters in 245.31 excess of five percent of the registered voters of the 245.32 intermediate school district on the day the petition is filed 245.33 with the board. If the petition is filed, then the board 245.34 resolution authorizing the sale and issuance of bonds has no 245.35 effect until the question of their issuance has been submitted 245.36 to the voters of the intermediate school district at a special 246.1 election held in and for the intermediate district. The date of 246.2 the election, the question to be submitted, and all other 246.3 necessary conduct of the election shall be fixed by the 246.4 intermediate school board. The election shall be conducted and 246.5 canvassed under the direction of the intermediate school board 246.6 in accordance with chapter 205A, insofar as applicable. 246.7 If a majority of the total number of votes cast on the 246.8 question within the intermediate school district is in favor of 246.9 the question, the intermediate school board may proceed with the 246.10 sale and issuance of the bonds. 246.11 The bonds shall be general obligations of the intermediate 246.12 school district; however, each member school district must each 246.13 year certify its proportionate share of the debt service levy on 246.14 the bonds, with the allocation of its share of that levy 246.15 determined in accordance with the resolution authorizing the 246.16 project previously adopted by each member school board. For 246.17 purposes of section 123B.53, the debt service levies certified 246.18 for this purpose by an individual member school district shall 246.19 be considered debt service levies of that school district. By 246.20 July 1 and December 1 of each year, the school board of each 246.21 member school district shall transfer to the intermediate school 246.22 district an amount equal to 50 percent of the debt service levy 246.23 certified by that member school district in the previous fiscal 246.24 year to pay its proportionate share. 246.25 Sec. 49. Minnesota Statutes 1998, section 136D.741, 246.26 subdivision 4, is amended to read: 246.27 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 246.28 boardshall notmay sell and issue bonds for acquisition or 246.29 betterment purposes if: (1) each member school district board 246.30 has adopted a resolution authorizing the project; (2) the 246.31 intermediate board has prepared and published in a newspaper of 246.32 general circulation in the district a notice of the public 246.33 meeting on the intermediate district's intent to sell bonds; and 246.34 (3) the intermediate board has adopted a resolution authorizing 246.35 the bonds. The resolution becomes final unless within 30 days 246.36 after the meeting where the resolution was adopted a petition 247.1 requesting an election signed by a number of qualified voters in 247.2 excess of five percent of the registered voters of the 247.3 intermediate school district on the day the petition is filed 247.4 with the board. If the petition is filed, then the board 247.5 resolution authorizing the sale and issuance of bonds has no 247.6 effect until the question of their issuance has been submitted 247.7 to the voters of the intermediate school district at a special 247.8 election held in and for such intermediate district. The date 247.9 of such election, the question to be submitted, and all other 247.10 necessary conduct of such election shall be fixed by the 247.11 intermediate school board and said election shall be conducted 247.12 and canvassed under the direction of the intermediate school 247.13 board in accordance with chapter 205A, insofar as the same may 247.14 be deemed applicable. 247.15 If a majority of the total number of votes cast on the 247.16 question within the intermediate school district is in favor of 247.17 the question, the intermediate school board may thereupon 247.18 proceed with the sale and the issuance of said bonds. 247.19 The bonds shall be general obligations of the intermediate 247.20 school district; however, each member school district must each 247.21 year certify its proportionate share of the debt service levy on 247.22 the bonds, with the allocation of its share of that levy 247.23 determined in accordance with the resolution authorizing the 247.24 project previously adopted by each member school board. For 247.25 purposes of section 123B.53, the debt service levies certified 247.26 for this purpose by an individual member school district shall 247.27 be considered debt service levies of that school district. By 247.28 July 1 and December 1 of each year, the school board of each 247.29 member school district shall transfer to the intermediate school 247.30 district an amount equal to 50 percent of the debt service levy 247.31 certified by that member school district in the previous fiscal 247.32 year to pay its proportionate share. 247.33 Sec. 50. Minnesota Statutes 1998, section 136D.88, 247.34 subdivision 4, is amended to read: 247.35 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 247.36 boardshall notmay sell and issue bonds for acquisition or 248.1 betterment purposes if: (1) each member school district board 248.2 has adopted a resolution authorizing the project; (2) the 248.3 intermediate board has prepared and published in a newspaper of 248.4 general circulation in the district a notice of the public 248.5 meeting on the intermediate district's intent to sell bonds; and 248.6 (3) the intermediate board has adopted a resolution authorizing 248.7 the bonds. The resolution becomes final unless within 30 days 248.8 after the meeting where the resolution was adopted a petition 248.9 requesting an election signed by a number of qualified voters in 248.10 excess of five percent of the registered voters of the 248.11 intermediate school district on the day the petition is filed 248.12 with the board. If the petition is filed, then the board 248.13 resolution authorizing the sale and issuance of bonds has no 248.14 effect until the question of their issuance has been submitted 248.15 to the voters of the intermediate school district at a special 248.16 election held in and for the intermediate district. The date of 248.17 the election, the question to be submitted, and all other 248.18 necessary conduct of the election shall be fixed by the 248.19 intermediate school board. The election shall be conducted and 248.20 canvassed under the direction of the intermediate school board 248.21 in accordance with chapter 205A, insofar as applicable. 248.22 If a majority of the total number of votes cast on the 248.23 question within the intermediate school district is in favor of 248.24 the question, the intermediate school board may thereupon 248.25 proceed with the sale and issuance of the bonds. 248.26 The bonds shall be general obligations of the intermediate 248.27 school district; however, each member school district must each 248.28 year certify its proportionate share of the debt service levy on 248.29 the bonds, with the allocation of its share of that levy 248.30 determined in accordance with the resolution authorizing the 248.31 project previously adopted by each member school board. For 248.32 purposes of section 123B.53, the debt service levies certified 248.33 for this purpose by an individual member school district shall 248.34 be considered debt service levies of that school district. By 248.35 July 1 and December 1 of each year, the school board of each 248.36 member school district shall transfer to the intermediate school 249.1 district an amount equal to 50 percent of the debt service levy 249.2 certified by that member school district in the previous fiscal 249.3 year to pay its proportionate share. 249.4 Sec. 51. Minnesota Statutes 1998, section 169.01, 249.5 subdivision 6, is amended to read: 249.6 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 249.7 used to transport pupils to or from a school defined in section 249.8 120A.22, or to or from school-related activities, by the school 249.9 or a school district, or by someone under an agreement with the 249.10 school or a school district. A school bus does not include a 249.11 motor vehicle transporting children to or from school for which 249.12 parents or guardians receive direct compensation from a school 249.13 district, a motor coach operating under charter carrier 249.14 authority, a transit bus providing services as defined in 249.15 section 174.22, subdivision 7, or a vehicle otherwise qualifying 249.16 as a type III vehicle under paragraph (5), when the vehicle is 249.17 properly registered and insured and being driven by an employee 249.18 or agent of a school district for nonscheduled transportation. 249.19 A school bus may be type A, type B, type C, or type D, or type 249.20 III as follows: 249.21 (1) A "type A school bus" is a conversion or body 249.22 constructed upon a van-type or cutaway front section vehicle 249.23 with a left-side driver's door, designed for carrying more than 249.24 ten persons. This definition includes two classifications: 249.25 type A-I, with a gross vehicle weight rating (GVWR) over 10,000 249.26 pounds; and type A-II, with a GVWR of 10,000 pounds or less. 249.27 (2) A "type B school bus" is a conversion or body 249.28 constructed and installed upon a van or front-section vehicle 249.29 chassis, or stripped chassis, with a gross vehicle weight rating 249.30 of more than 10,000 pounds, designed for carrying more than ten 249.31 persons. Part of the engine is beneath or behind the windshield 249.32 and beside the driver's seat. The entrance door is behind the 249.33 front wheels. 249.34 (3) A "type C school bus" is a body installed upon a flat 249.35 back cowl chassis with a gross vehicle weight rating of more 249.36 than 10,000 pounds, designed for carrying more than ten 250.1 persons. All of the engine is in front of the windshield and 250.2 the entrance door is behind the front wheels. A type C school 250.3 bus has a maximum length of 45 feet. 250.4 (4) A "type D school bus" is a body installed upon a 250.5 chassis, with the engine mounted in the front, midship or rear, 250.6 with a gross vehicle weight rating of more than 10,000 pounds, 250.7 designed for carrying more than ten persons. The engine may be 250.8 behind the windshield and beside the driver's seat; it may be at 250.9 the rear of the bus, behind the rear wheels, or midship between 250.10 the front and rear axles. The entrance door is ahead of the 250.11 front wheels. A type D school bus has a maximum length of 45 250.12 feet. 250.13 (5) Type III school buses and type III Head Start buses are 250.14 restricted to passenger cars, station wagons, vans, and busesin250.15service after January 1, 1999,havingan originala maximum 250.16 manufacturer's rated seating capacity of ten or fewer people, 250.17 including the driver, and a gross vehicle weight rating of 250.18 10,000 pounds or less. In this subdivision, "gross vehicle 250.19 weight rating" means the value specified by the manufacturer as 250.20 the loaded weight of a single vehicle. A "type III school bus" 250.21 and "type III Head Start bus" must not be outwardly equipped and 250.22 identified as a type A, B, C, or D school bus or type A, B, C, 250.23 or D Head Start bus. A van or bus converted to a seating 250.24 capacity of ten or fewer and placed in service on or after 250.25 August 1, 1999, must have been originally manufactured to comply 250.26 with the passenger safety standards. 250.27 Sec. 52. Minnesota Statutes 1998, section 169.03, 250.28 subdivision 6, is amended to read: 250.29 Subd. 6. [WORKING ON HIGHWAY.] (a) The provisions of this 250.30 chapter shall not apply to persons, motor vehicles, and other 250.31 equipment while actually engaged in work upon the highway, 250.32 except as provided in paragraphs (b) and (c). 250.33 (b) This chapter shall apply to those persons and vehicles 250.34 when traveling to or from such work, except that persons 250.35 operating equipment owned, rented or hired by road authorities 250.36 shall be exempt from the width, height and length provisions of 251.1 sections 169.80 and 169.81 and shall be exempt from the weight 251.2 limitations of this chapter while engaged in snow or ice removal 251.3 and while engaged in flood control operations on behalf of the 251.4 state or a local governmental unit. 251.5 (c) Sections 169.121 to 169.129 and 169.444 apply to 251.6 persons while actually engaged in work upon the highway. 251.7 Sec. 53. Minnesota Statutes 1998, section 171.3215, 251.8 subdivision 2, is amended to read: 251.9 Subd. 2. [CANCELLATION FOR DISQUALIFYING AND OTHER 251.10 OFFENSES.] Within ten days of receiving notice under section 251.11 631.40, subdivision 1a, or otherwise receiving notice for a 251.12 nonresident driver, that a school bus driver has been convicted 251.13 of a disqualifying offense, the commissioner shall permanently 251.14 cancel the school bus driver's endorsement on the offender's 251.15 driver's license and in the case of a nonresident, the driver's 251.16 privilege to operate a school bus in Minnesota. A school bus 251.17 driver whose endorsement or privilege to operate a school bus in 251.18 Minnesota has been permanently canceled may not apply for 251.19 reinstatement. Within ten days of receiving notice under 251.20 section 631.40, subdivision 1a, or otherwise receiving notice 251.21 for a nonresident driver, that a school bus driver has been 251.22 convicted ofa gross misdemeanor, ora violation of section 251.23 169.121, 169.129, or a similar statute or ordinance from another 251.24 state, and within ten days of revoking a school bus driver's 251.25 license under section 169.123, the commissioner shall cancel the 251.26 school bus driver's endorsement on the offender's driver's 251.27 license or the nonresident's privilege to operate a school bus 251.28 in Minnesota for five years. After five years, a school bus 251.29 driver may apply to the commissioner for reinstatement. Even 251.30 after five years, cancellation of a school bus driver's 251.31 endorsement or a nonresident's privilege to operate a school bus 251.32 in Minnesota for a violation under section 169.121, 169.123, 251.33 169.129, or a similar statute or ordinance from another state, 251.34 shall remain in effect until the driver provides proof of 251.35 successful completion of an alcohol or controlled substance 251.36 treatment program. For a first offense, proof of completion is 252.1 required only if treatment was ordered as part of a chemical use 252.2 assessment. Within ten days of receiving notice under section 252.3 631.40, subdivision 1a, or otherwise receiving notice for a 252.4 nonresident driver, that a school bus driver has been convicted 252.5 of a fourth moving violation in the last three years, the 252.6 commissioner shall cancel the school bus driver's endorsement on 252.7 the offender's driver's license or the nonresident's privilege 252.8 to operate a school bus in Minnesota until one year has elapsed 252.9 since the last conviction. A school bus driver who has no new 252.10 convictions after one year may apply for reinstatement. Upon 252.11 canceling the offender's school bus driver's endorsement, the 252.12 commissioner shall immediately notify the licensed offender of 252.13 the cancellation in writing, by depositing in the United States 252.14 post office a notice addressed to the licensed offender at the 252.15 licensed offender's last known address, with postage prepaid 252.16 thereon. 252.17 Sec. 54. Minnesota Statutes 1998, section 171.3215, 252.18 subdivision 4, is amended to read: 252.19 Subd. 4. [WAIVER OF PERMANENT CANCELLATION.] (a) The 252.20 commissioner of public safety or the commissioner's designee, in 252.21 consultation with the division of driver and vehicle services, 252.22 may waive the permanent cancellation requirement of this section 252.23171.3215for a person convicted of a misdemeanor, a gross 252.24 misdemeanor, a nonfelony violation of chapter 152, or a felony 252.25 that is not a violent crime under section 609.1095. 252.26 (b) After notice to the requesting school district and 252.27 contract provider of school bus transportation, the commissioner 252.28 may waive the permanent cancellation requirement after ten years 252.29 have elapsed since the person was convicted of a violation of 252.30 section 609.582, subdivision 2, 3, or 4. 252.31 Sec. 55. Minnesota Statutes 1998, section 181.101, is 252.32 amended to read: 252.33 181.101 [WAGES; HOW OFTEN PAID.] 252.34 Every employer must pay all wages earned by an employee at 252.35 least once every3031 days on a regular pay day designated in 252.36 advance by the employer regardless of whether the employee 253.1 requests payment at longer intervals. Unless paid earlier, the 253.2 wages earned during the first half of the first30-day31-day 253.3 pay period become due on the first regular payday following the 253.4 first day of work. If wages earned are not paid, the 253.5 commissioner of labor and industry or the commissioner's 253.6 representative may demand payment on behalf of an employee. If 253.7 payment is not made within ten days of demand, the commissioner 253.8 may charge and collect the wages earned and a penalty in the 253.9 amount of the employee's average daily earnings at the rate 253.10 agreed upon in the contract of employment, not exceeding 15 days 253.11 in all, for each day beyond the ten-day limit following the 253.12 demand. Money collected by the commissioner must be paid to the 253.13 employee concerned. Thissubdivisionsection does not prevent 253.14 an employee from prosecuting a claim for wages. This section 253.15 does not prevent a school district or other public school entity 253.16 from paying any wages earned by its employees during a school 253.17 year on regular pay days in the manner provided by an applicable 253.18 contract or collective bargaining agreement, or a personnel 253.19 policy adopted by the governing board. For purposes of this 253.20 section, "employee" includes a person who performs agricultural 253.21 labor as defined in section 181.85, subdivision 2. For purposes 253.22 of this section, wages are earned on the day an employee works. 253.23 (Effective Date: Section 55 (181.101) is effective the day 253.24 following final enactment.) 253.25 Sec. 56. Minnesota Statutes 1998, section 209.07, is 253.26 amended by adding a subdivision to read: 253.27 Subd. 4. [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 253.28 REQUIREMENTS.] If an election approving the issuance of bonds by 253.29 a school district is contested, the contestant shall file in the 253.30 district court a surety bond of at least $5,000 or a greater 253.31 amount determined necessary by the court to provide security for 253.32 costs of the contest to the school district, including any 253.33 additional costs that may be incurred by the school district if 253.34 the bond issue is delayed. The court may waive the requirements 253.35 of this subdivision to the extent it finds that there is a 253.36 reasonable likelihood that the contestant will prevail and that 254.1 filing the bond would impose an undue hardship. If the surety 254.2 bond is not filed within the time allowed by the court, the 254.3 contest shall be dismissed with prejudice. 254.4 Sec. 57. Laws 1997, First Special Session chapter 4, 254.5 article 5, section 22, is amended to read: 254.6 Sec. 22. [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 254.7 STANDARDS.] 254.8 Subdivision 1. [ESTABLISHMENT.] A grant program to promote 254.9 professional teaching standards through the national board for 254.10 professional teaching standardsfor fiscal year 1998is 254.11 established to provide eligible teachers with the opportunity to 254.12 receive national board for professional teaching standards 254.13 certification and to reward teachers who have already received 254.14 such certification. 254.15 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 254.16 licensed K-12 school teacher employed in a state school. To be 254.17 eligible for a grant, the teacher must have been employed as a 254.18 teacher for a minimum of five school years and demonstrate 254.19 either that the national board for professional teaching 254.20 standards has accepted the teacher as a candidate for board 254.21 certification or that the teacher already has received board 254.22 certification. 254.23 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 254.24 participate in the national board for professional teaching 254.25 standards certification process or to receive a reward for 254.26 already completing the board certification process, a teacher 254.27 must submit an application to the commissioner of children, 254.28 families, and learning in the form and manner the commissioner 254.29 establishes. The applicant must demonstrate either that the 254.30 national board for professional teaching standards has accepted 254.31 the teacher as a candidate for board certification or that the 254.32 teacher already has received board certification. The 254.33 commissioner shall consult with the state board of teaching when 254.34 reviewing the applications. 254.35 Subd. 4. [GRANT AWARDS; PROCEEDS.](a)The commissioner 254.36 may award matching grants of $1,000 eachtofor eligible 255.1 teachers who provide a matching amount through collaboration 255.2 with either a school district, professional organization, or 255.3 both and are accepted as candidates for national board for 255.4 professional teaching standards certification.Grant recipients255.5shall use the grant to participate in the certification255.6process.The grant award shall be paid to the national board 255.7 for professional teaching standards in the teacher's name. 255.8 Within 24 months of receiving certification, a grant recipient 255.9 must satisfactorily completeone year of teaching service in a255.10state schoolthe certification process or repay the state the 255.11 amount of the grant, except if the commissioner determines that 255.12 death or disability prevents the grant recipient from providing 255.13 the one year of teaching service. 255.14(b) The commissioner may award grants to eligible teachers255.15who have earned national board for professional teaching255.16standards certification. The amount of each grant shall not255.17exceed $1,000 and the commissioner shall establish criteria to255.18determine the actual amount of each grant. Grant recipients255.19shall use the grant proceeds for educational purposes, including255.20purchasing instructional materials, equipment, or supplies and255.21realizing professional development opportunities.255.22 Subd. 5. [REGIONAL COORDINATORS.] The state shall provide 255.23 the equivalent of four full-time regional coordinators with two 255.24 located in the seven-county metropolitan area and two located in 255.25 greater Minnesota. $25,000 per year, for the first two years 255.26 only, shall be provided to cover expenses of the regional 255.27 coordinators including, but not limited to, travel, meetings, 255.28 web page maintenance, and cost related to supporting candidate's 255.29 expenses. After the first two years, individual school 255.30 districts must negotiate with the exclusive representative of 255.31 the teachers in the district for coordinator positions. 255.32 Subd. 6. [SALARY INCENTIVE.] A national board certified 255.33 teacher currently teaching in a state school must receive a 255.34 $2,000 per year salary incentive for the life of the 255.35 certificate. The teacher must continue to provide direct 255.36 instruction to students in the classroom at least 65 percent of 256.1 their time to retain the salary incentive. 256.2 Subd. 7. [MENTORING INCENTIVE.] (a) A national board 256.3 certified teacher currently teaching in a state school must 256.4 receive a $1,500 per year mentoring incentive, if the board 256.5 certified teacher is trained and acts as a mentor for other 256.6 national board certification candidates. 256.7 (b) A school district must receive $5,000 per year for each 256.8 board certified teacher, if the school district uses a national 256.9 board certified teacher as a mentor to induct new teachers to 256.10 provide high quality professional development for career 256.11 teachers or to help low-achieving schools with school 256.12 improvement plans and professional development. The $5,000 must 256.13 be set aside in a separate account for the specified uses. 256.14 Sec. 58. [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 256.15 Subdivision 1. [ESTABLISHMENT.] A program is established 256.16 to allow Minnesota school districts, in collaboration with 256.17 public post-secondary institutions that offer a board of 256.18 teaching approved teacher preparation program, to offer 256.19 undergraduate and graduate teacher preparation opportunities. 256.20 The program must provide teacher preparation opportunities that 256.21 effectively address the needs of different types of schools, 256.22 students, and teachers. 256.23 Subd. 2. [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 256.24 TERMS.] (a) An applicant under this program must be a school 256.25 district. The school district must collaborate with a teacher 256.26 preparation program approved by the board of teaching and an 256.27 exclusive representative of the teachers in the district. The 256.28 program must be used to assist in improving teacher preparation 256.29 by placing teacher education students in preschool, elementary, 256.30 and secondary classrooms or other education settings. 256.31 (b) Each school district participating in this program may 256.32 select the teacher preparation model that best promotes 256.33 understanding the needs of each educational system or 256.34 institution. For example: 256.35 (1) a public school educator may teach courses that assist 256.36 in preparing future educators or take professional development 257.1 courses; or 257.2 (2) a post-secondary teacher may teach courses at the 257.3 school district or mentor student teachers. 257.4 Participation is not limited to one school or institution 257.5 and may involve other participants, including parent/community 257.6 groups, teacher organizations, and business groups. Contracting 257.7 schools and institutions are encouraged to develop program 257.8 components that engage nontraditional teacher preparation 257.9 students. 257.10 (c) Temporary placements made under this program must not 257.11 have a negative effect on participants' salaries, seniority, or 257.12 other benefits. Notwithstanding Minnesota Statutes, sections 257.13 122A.16 and 123B.02, subdivision 14, a member of the staff of a 257.14 post-secondary institution may teach in a preschool, elementary 257.15 school, secondary school, or other education settings, or 257.16 perform a service agreed upon under this section for which a 257.17 license would otherwise be required without holding the 257.18 applicable license. In addition, a licensed educator employed 257.19 by a school district may teach or perform a service, agreed upon 257.20 under this section, at a post-secondary institution without 257.21 meeting the applicable qualifications of the post-secondary 257.22 institution. A district is not subject to Minnesota Statutes, 257.23 section 127A.43, as a result of entering into an agreement 257.24 according to this section that enables a post-secondary educator 257.25 to teach or provide services in the district. All arrangements 257.26 and details regarding an exchange must be mutually agreed to by 257.27 each participating school district and post-secondary 257.28 institution before implementing the exchange. 257.29 (d) An educator who held a temporary position or an 257.30 exchanged position under this section must be continued in or 257.31 restored to the position previously held, or to a position of 257.32 like seniority, status, and pay upon return. Retirement 257.33 benefits under an employer-sponsored pension or retirement plan 257.34 must not be reduced because of time spent on an exchange or 257.35 temporary position under this section. 257.36 (e) An educator who is continued in or restored to a 258.1 position under paragraph (d): 258.2 (1) must be continued or restored without loss of 258.3 seniority; and 258.4 (2) may participate in insurance or other benefits offered 258.5 by the employer under its established rules and practices. 258.6 Subd. 3. [APPLICATION PROCESS.] To participate in this 258.7 program, a school district must submit an application to the 258.8 commissioner of children, families, and learning in the form and 258.9 manner established by the commissioner. The application must 258.10 describe how the applicant will improve teacher education by 258.11 providing undergraduate or graduate teacher preparation 258.12 opportunities in order to effectively address the needs of 258.13 different types of schools, students, and teachers, and how the 258.14 applicant will use technology to implement the program. The 258.15 commissioner may require additional information from an 258.16 applicant. 258.17 Subd. 4. [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 258.18 selecting program participants, the commissioner must determine: 258.19 (1) whether an applicant has met the requirements of this 258.20 section; 258.21 (2) whether the location of a program is particularly 258.22 suitable for realizing the purpose of this section; 258.23 (3) the number of teacher candidates, teachers, and 258.24 students who would participate in the program; 258.25 (4) the ability of the applicant to demonstrate the 258.26 positive effect of the program on students enrolled in a 258.27 participating school district by using standardized test scores, 258.28 the rate at which students pass the state's reading, math, and 258.29 writing basic skills test, or other valid and reliable 258.30 assessment measures; 258.31 (5) whether public post-secondary institutions with board 258.32 of teaching approved teacher preparation programs and other 258.33 organizations representing parents' business interests and 258.34 community interests are integral participants in the proposed 258.35 program; 258.36 (6) whether the program addresses the shortage of teachers 259.1 in subject areas identified by the commissioner of children, 259.2 families, and learning; and 259.3 (7) the ability of the applicant to provide information 259.4 about the program to interested school districts and 259.5 post-secondary institutions. 259.6 (b) The commissioner may select up to five applicants to 259.7 participate in this program for the 1999-2000 school year and 259.8 later. Participants must be located throughout the state. The 259.9 commissioner must provide one-time start-up costs of up to 259.10 $20,000 per participating site. 259.11 Subd. 5. [POST-SECONDARY INSTITUTION FUNDING.] A 259.12 post-secondary institution participating in this program as a 259.13 contracting party must provide the instructional costs of 259.14 teacher education students and may charge the students the costs 259.15 of tuition. 259.16 Subd. 6. [EVALUATION.] The commissioner must contract with 259.17 an independent qualified expert to evaluate the impact of the 259.18 program on teacher efficacy and student performance and present 259.19 a report to the commissioner and the education committees of the 259.20 legislature by February 15, 2005. 259.21 Sec. 59. [REALLOCATION OF EDUCATION RESOURCES.] 259.22 The Minnesota state colleges and universities and the 259.23 University of Minnesota must set aside a portion of their higher 259.24 education teacher education resources for teacher preparation 259.25 programs that are committed to meeting the projected teacher 259.26 shortages in areas identified by the department of children, 259.27 families, and learning. 259.28 Sec. 60. [BOARD OF TEACHING.] 259.29 The board of teaching must communicate with school 259.30 districts, including district human resources personnel, on the 259.31 procedures available to districts for expediting the hiring of 259.32 substitute teachers. 259.33 Sec. 61. [SCHOOL COUNSELOR ASSESSMENT.] 259.34 The department of children, families, and learning, in 259.35 consultation with school districts, shall determine methods of 259.36 meeting adequate local district needs for licensed school 260.1 counselors. The department shall consider recommended ratios, 260.2 the costs for meeting these ratios, and alternative strategies 260.3 for collaboration to provide counseling services to pupils, 260.4 especially in small districts. 260.5 Sec. 62. [RULES AND POLICIES.] 260.6 The revisor of statutes shall recodify state high school 260.7 league eligibility rules. The revisor shall work with the 260.8 league to clarify and eliminate discrepancies and 260.9 inconsistencies in league rules, policies, and bylaws affecting 260.10 student eligibility. The league shall pay the revisor for the 260.11 cost of this work, as determined by the revisor. 260.12 Sec. 63. [HIGH SCHOOL LEAGUE; TRANSITION.] 260.13 The terms of persons who are members appointed by the 260.14 governor on the effective date of section 42 are extended until 260.15 July 31 of the year in which the terms are scheduled to expire. 260.16 Sec. 64. [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] 260.17 Subdivision 1. [GRANT PROGRAM.] The commissioner of 260.18 children, families, and learning shall establish a grant program 260.19 for grants to school districts to evaluate alternative calendar 260.20 projects, including extended day, week, and year programs. 260.21 Districts may contract with a higher education institution to 260.22 conduct more comprehensive longitudinal research on student 260.23 achievement. The applicants shall evaluate the following: 260.24 (1) increased student achievement and other related 260.25 outcomes, including attitudes, skills, and behavior; 260.26 (2) quality of instructional time for the regular school 260.27 day and the extended learning component; 260.28 (3) quantity of instructional time and effect on student 260.29 outcomes; and 260.30 (4) use of technology to enhance student achievement in an 260.31 extended learning environment. 260.32 Subd. 2. [APPLICATION PROCESS.] To obtain a grant, an 260.33 applicant must submit an application to the commissioner in the 260.34 form and manner established by the commissioner. The 260.35 application must describe how the applicant will evaluate 260.36 alternative calendar projects as described in subdivision 1. 261.1 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 261.2 to applicants who meet the requirements of this section. The 261.3 commissioner must base the amount of the grant on the number of 261.4 children expected to participate in the program. Districts 261.5 receiving grants shall report to the commissioner of children, 261.6 families, and learning, and to the education committees of the 261.7 legislature by February 1, 2001, on the results of the 261.8 alternative calendar study. 261.9 Sec. 65. [MODEL STATE POLICY ON STUDENT RECORDS.] 261.10 Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] By 261.11 September 1, 1999, the commissioner of administration shall 261.12 compile and make available a model policy that accurately 261.13 reflects state and federal data regulations regarding student 261.14 records and other data used by government agencies who serve 261.15 school-aged children. The model policy shall include procedures 261.16 and other guidelines detailing allowable use and transfer of 261.17 data according to state and federal law. 261.18 Subd. 2. [RECOMMENDATIONS TO THE LEGISLATURE.] By January 261.19 15, 2000, the commissioner, in consultation with representatives 261.20 from federal agencies, state agencies, county governments, 261.21 school districts, cities, and parents who have an interest in 261.22 student records and other applicable data, shall make 261.23 recommendations to the legislature regarding necessary 261.24 clarifications of state law and any enforcement mechanisms 261.25 identified as essential for the proper sharing of data. 261.26 Sec. 66. [SCHOOL YEAR START DATE.] 261.27 Subdivision 1. [GOODHUE.] Notwithstanding Minnesota 261.28 Statutes, section 120A.40, and Laws 1997, First Special Session 261.29 chapter 4, article 7, section 49, subdivision 1, for the 261.30 1999-2000 school year independent school district No. 253, 261.31 Goodhue, may begin the school year on August 30, 1999. 261.32 Subd. 2. [MILACA.] Notwithstanding Minnesota Statutes 261.33 1996, section 126.12, subdivision 1, and Laws 1997, First 261.34 Special Session chapter 4, article 7, section 49, subdivision 1, 261.35 for the 1998-1999 school year only, independent school district 261.36 No. 912, Milaca, may begin the school year on August 24, 1998. 262.1 Subd. 3. [WORTHINGTON.] Notwithstanding Minnesota 262.2 Statutes, section 120A.40, and Laws 1997, First Special Session 262.3 chapter 4, article 7, section 49, subdivision 1, for the 262.4 1999-2000 school year, independent school district No. 518, 262.5 Worthington, may begin the school year on August 23, 1999. 262.6 (Effective Date: Section 66, subdivision 2 (Milaca) is 262.7 effective retroactive to July 1, 1998.) 262.8 Sec. 67. [FUND TRANSFERS.] 262.9 Subdivision 1. [WHITE BEAR LAKE.] Notwithstanding 262.10 Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 262.11 subdivision 4, on June 30, 1999, independent school district No. 262.12 624, White Bear Lake, a district recently out of statutory 262.13 operating debt, may permanently transfer up to $650,000 from its 262.14 debt redemption fund to its general fund without making a levy 262.15 reduction. 262.16 Subd. 2. [MONTICELLO.] Notwithstanding Minnesota Statutes, 262.17 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 262.18 30, 1999, independent school district No. 882, Monticello, may 262.19 permanently transfer up to $650,000 from its debt redemption 262.20 fund to its general fund. 262.21 Subd. 3. [GRAND MEADOW.] Notwithstanding Minnesota 262.22 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 262.23 on June 30, 1999, independent school district No. 495, Grand 262.24 Meadow, may permanently transfer up to $300,000 from its 262.25 disabled access account in the general fund to its capital 262.26 fund. This transfer is contingent upon the school district's 262.27 successful construction of a new kindergarten through grade 12 262.28 school. 262.29 Subd. 4. [FARIBAULT.] Notwithstanding Minnesota Statutes, 262.30 section 123B.79, or other law, on or before June 30, 2000, 262.31 independent school district No. 656, Faribault, may transfer an 262.32 amount equal to the sale of the school district's excess 262.33 property from its capital operating account to the undesignated 262.34 general fund, not to exceed $1,000,000. This transfer shall be 262.35 used for the purposes of defraying the district's operating debt 262.36 and shall not be subject to salary negotiations. 263.1 Subd. 5. [WESTONKA.] Notwithstanding Minnesota Statutes, 263.2 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 263.3 30, 1999, independent school district No. 277, Westonka, may 263.4 permanently transfer up to $235,000 from its debt redemption 263.5 fund to its general fund without making a levy reduction to help 263.6 the school district out of statutory operating debt. 263.7 (Effective Date: Section 67 (Fund Transfers) is effective 263.8 the day following final enactment.) 263.9 Sec. 68. [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 263.10 OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 263.11 The provisions of Laws 1998, chapter 398, article 5, 263.12 section 55, and related sections apply except as provided under 263.13 this article. 263.14 (Effective Date: Section 68 (State Board) is effective 263.15 December 31, 1999.) 263.16 Sec. 69. [APPROPRIATIONS.] 263.17 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 263.18 LEARNING.] The following sums are appropriated from the general 263.19 fund to the department of children, families, and learning in 263.20 the fiscal years indicated. 263.21 Subd. 2. [URBAN TEACHER PREPARATION PROGRAM.] For a grant 263.22 to the Minnesota state colleges and universities for an urban 263.23 teacher preparation program at Metropolitan State University: 263.24 $1,800,000 ..... 2000 263.25 This appropriation is available until June 30, 2001. 263.26 Subd. 3. [ALTERNATIVE PATHWAYS FOR TEACHER 263.27 PREPARATION.] For providing program participants under section 263.28 58 with start-up costs: 263.29 $750,000 ..... 2000 263.30 This appropriation is available until June 30, 2001. 263.31 The commissioner shall consider a proposal from independent 263.32 school district No. 138, North Branch. 263.33 Subd. 4. [MINNESOTA NEW TEACHER PROJECT.] For the state 263.34 portion of the Minnesota new teacher project: 263.35 $1,000,000 ..... 2000 263.36 $1,000,000 ..... 2001 264.1 Any balance in the first year does not cancel but is 264.2 available in the second year. 264.3 Districts participating in the new teacher project may 264.4 consider programs offered by Hamline university, the Minnesota 264.5 academy of educators, and other first-year teacher induction 264.6 programs. 264.7 Subd. 5. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 264.8 collaborative urban educator programs providing alternative 264.9 pathways to licensure: 264.10 $900,000 ..... 2000 264.11 $900,000 ..... 2001 264.12 $400,000 each year is for the Collaborative Urban Educators 264.13 Program at St. Thomas University; and $500,000 each year is for 264.14 the South East Asia Teachers Program at Concordia College. 264.15 Any balance in the first year does not cancel but is 264.16 available in the second year. 264.17 Subd. 6. [PROFESSIONAL TEACHING STANDARDS.] For grants to 264.18 promote and reward high professional teaching standards: 264.19 $800,000 ..... 2000 264.20 This appropriation is available until June 30, 2001. Of 264.21 this amount, $150,000 is for grants to teachers applying for 264.22 certification, $190,000 is for regional coordinators, $220,000 264.23 is for salary incentives, $70,000 is for mentor incentives, and 264.24 $170,000 is for school district incentives for using national 264.25 board certified teachers as a mentor. 264.26 All school district incentives from this appropriation 264.27 shall be set aside in a separate fund for the induction of new 264.28 teachers, high quality professional development, school 264.29 improvement plans, and professional development for staff in 264.30 low-achieving schools. 264.31 Subd. 7. [SCHOOL ADMINISTRATORS RECRUITMENT PROGRAM.] For 264.32 the Minnesota service cooperatives to plan and establish a 264.33 school administrators recruitment program to identify and 264.34 develop potential administrators within Minnesota school 264.35 districts and collaborate with post-secondary institutions to 264.36 deliver administrative preparation programs in a nontraditional 265.1 manner to these potential administrators and alternative 265.2 pathways to licensure: 265.3 $100,000 ..... 2000 265.4 $100,000 ..... 2001 265.5 Subd. 8. [PILLAGER REIMBURSEMENT.] For independent school 265.6 district No. 116, Pillager, for reimbursement of extraordinary 265.7 legal expenses due to a lawsuit with statewide implications: 265.8 $325,000 ..... 2000 265.9 Subd. 9. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 265.10 the school improvement pilot training program established in 265.11 Laws 1997, First Special Session chapter 4, article 7, section 265.12 47: 265.13 $500,000 ..... 2000 265.14 This appropriation is available until June 30, 2001. 265.15 Subd. 10. [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] For 265.16 alternative calendar evaluation projects: 265.17 $690,000 ..... 2000 265.18 $690,000 ..... 2001 265.19 $140,000 each year is for a grant to special school 265.20 district No. 6, South St. Paul, for the operation of an extended 265.21 day kindergarten program; $75,000 each year is for a grant to 265.22 independent school district No. 877, Buffalo; and $250,000 each 265.23 year is for a grant to independent school district No. 624, 265.24 White Bear Lake. 265.25 Any balance in the first year does not cancel but is 265.26 available in the second year. 265.27 Subd. 11. [TEACHER LICENSURE PROGRAM TO INCREASE THE 265.28 NUMBER OF METROPOLITAN AREA TEACHERS OF STUDENTS WITH EMOTIONAL 265.29 AND BEHAVIORAL DISORDERS.] 265.30 For implementing a metropolitan area teacher licensure 265.31 program to enable educational assistants who work with students 265.32 with emotional and behavioral disorders to enroll in a 265.33 collaborative and inclusive licensure program for teachers of 265.34 students with emotional and behavioral disorders that offers the 265.35 educational assistants the academic support and financial 265.36 assistance they need to obtain a teaching license in emotional 266.1 and behavioral disorders: 266.2 $125,000 ..... 2000 266.3 $125,000 ..... 2001 266.4 This appropriation is available until June 30, 2001. 266.5 (Effective Date: Section 69, subdivision 11 (Teacher 266.6 Licensure Appropriation) is effective July 1, 1999, and is 266.7 contingent upon proposed Minnesota Rules, part 8710.5600, as 266.8 published on November 2, 1998, at 23 S.R. 1030, being adopted 266.9 and the program being certified. If the proposed rule is 266.10 adopted and certified after July 1, 1999, section 69, 266.11 subdivision 11, is effective retroactive to July 1, 1999.) 266.12 Sec. 70. [REPEALER.] 266.13 (a) Minnesota Statutes 1998, section 120A.41, is repealed 266.14 effective retroactive to March 1, 1999, for the 1999-2000 school 266.15 year. 266.16 (b) Minnesota Statutes 1998, sections 127A.42, subdivision 266.17 8; 127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 266.18 subdivision 2; 127A.64; and 127A.66, subdivision 1, are repealed 266.19 effective December 31, 1999. 266.20 Sec. 71. [EFFECTIVE DATES.] 266.21 When preparing the prekindergarten through grade 12 266.22 education conference committee report for adoption by the 266.23 legislature, the revisor shall combine all effective date 266.24 notations in this article into this effective date section. 266.25 ARTICLE 8 266.26 LIBRARIES 266.27 Section 1. Laws 1997, First Special Session chapter 4, 266.28 article 8, section 4, is amended to read: 266.29 Sec. 4. [LIBRARYPILOTPROJECT.] 266.30 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 266.31 contrary and subject to approvals in subdivision 2, a public 266.32 library may operate as apilotlibrary project jointly with the 266.33 school library at Nashwauk-Keewatin high school, located in the 266.34 city of Nashwauk. The public library is established to serve 266.35 persons within the boundaries of independent school district No. 266.36 319, except the city of Keewatin. 267.1 Subd. 2. [APPROVALS.] Operation of the public library is 267.2 contingent upona resolution approved bythe governing bodies of 267.3 cities, towns, and unorganized townships within the geographical 267.4 boundaries of independent school district No. 319, except for 267.5 the city of Keewatin, entering into a joint powers agreement 267.6 under Minnesota Statutes 1998, section 471.59, to accomplish the 267.7 purpose of this section. The joint powers agreement must 267.8 provide for continuing the library project if one party to the 267.9 agreement withdraws from the agreement. For the purposes of 267.10 this subdivision, the Itasca county board is designated as the 267.11 governing body for the unorganized townships. 267.12 Subd. 3. [BOARD; APPOINTMENTS.] Theresolutionjoint 267.13 powers agreement in subdivision 2 shall provide for a library 267.14 board of five members as follows: two members appointed by the 267.15 school board of independent school district No. 319, one member 267.16 appointed by each town board located within independent school 267.17 district No. 319 boundaries, one member appointed by the council 267.18 of the city of Nashwauk, and one member appointed by the Itasca 267.19 county board to represent the unorganized towns within the 267.20 school district territory. 267.21 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 267.22 members shall serve for the term of thepilot programlibrary 267.23 project. An appointing authority may remove for misconduct or 267.24 neglect any member it has appointed to the board and may replace 267.25 that member by appointment. Board members shall receive no 267.26 compensation for their services but may be reimbursed for actual 267.27 and necessary travel expenses incurred in the discharge of 267.28 library board duties and activities. 267.29 Subd. 5. [FUNDING.]For taxes payable in 1998 and 1999267.30only,The library board may levy a tax in an amount up to 267.31 $25,000 annually on property located within the boundaries of 267.32 independent school district No. 319, except the city of 267.33 Keewatin. The Itasca county auditor shall collect the tax and 267.34 distribute it to the library board. The money may be used for 267.35 library staff and for the purchase of library materials, 267.36 including computer software. The levy must also fund the amount 268.1 necessary to receive bookmobile services from the Arrowhead 268.2 regional library system.For taxes payable in 1998 and 1999268.3only,The county may not levy under Minnesota Statutes, section 268.4 134.07, for the areas described in this section. 268.5 Subd. 6. [BUILDING.] The school district shall provide the 268.6 physical space and costs associated with operating the library 268.7 including, but not limited to, heat, light, telephone service, 268.8 and maintenance. 268.9 Subd. 7. [ORGANIZATION.] Immediately after appointment, 268.10 the library board shall organize by electing one of its number 268.11 as president and one as secretary, and it may appoint other 268.12 officers it finds necessary. 268.13 Subd. 8. [DUTIES.] The library board shall adopt bylaws 268.14 and regulations for the library and for the conduct of its 268.15 business as may be expedient and conformable to law. It shall 268.16 have exclusive control of the expenditure of all money collected 268.17 for it. The library board shall appoint a qualified library 268.18 director and other staff, establish the compensation of 268.19 employees, and remove any of them for cause. The library board 268.20 may contract with the school board, the regional library board, 268.21 or the city in which the library is located to provide 268.22 personnel, fiscal, or administrative services. The contract 268.23 shall state the personnel, fiscal, and administrative services 268.24 and payments to be provided by each party. 268.25 Subd. 9. [CRITERIA.] The library shall meet all 268.26 requirements in statutes and rules applicable to public 268.27 libraries and school media centers. A media supervisor licensed 268.28 by the board of teaching may be the director of the library. 268.29 Public parking, restrooms, drinking water, and other necessities 268.30 shall be easily accessible to library patrons. 268.31Subd. 10. [REPORT.] The library board shall report to the268.32department of children, families, and learning by February 1,268.331999, about the costs of providing the library service and the268.34number of patrons served.268.35Subd. 11. [EXPIRATION.] This section expires January 31,268.362000.269.1 Sec. 2. Laws 1997, First Special Session chapter 4, 269.2 article 9, section 7, subdivision 2, is amended to read: 269.3 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner of 269.4 children, families, and learning shall establish a process and 269.5 application forms for library sites to apply for grant funds. 269.6 Libraries must describe how they will cooperate with schools. 269.7 An applicant must submit a technology plan with the 269.8 application. Eligible applicants must, at a minimum, describe 269.9 how the proposed project is consistent with the technology plan; 269.10 describe how it ensures interoperability of hardware, software, 269.11 and telecommunication and meets existing Minnesota technical 269.12 standards appropriate to the project; identify the specific site 269.13 needs that the project will address; define the project's 269.14 expected outcomes; and provide the source, type, and amounts of 269.15 all matching funds. To be eligible for a site-based technology 269.16 learning grant, a library site must: 269.17 (1) be a school library, a public library, or a partnership 269.18 of public and school libraries or be a publicly funded or 269.19 nonprofit library in partnership with school libraries, public 269.20 libraries, or public library systems; 269.21 (2) be a member of a regional multicounty, multitype 269.22 library cooperation system; 269.23 (3) have each dollar of grant money matched by at least $1 269.24 of library site money, including in-kind contributions; 269.25(3)(4) agree to disseminate and share information about 269.26 its project; 269.27(4)(5) provide a benefit to the greater community; and 269.28(5)(6) maintain any ongoing costs of support for the 269.29 technology project after the initial funding under the grant 269.30 program. 269.31 Sec. 3. Laws 1998, chapter 398, article 9, section 7, is 269.32 amended to read: 269.33 Sec. 7. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 269.34 SCHOOL MEDIA CENTERS.] 269.35 Subdivision 1. [ESTABLISHMENT.] The commissioner of 269.36 children, families, and learning and the director of the higher 270.1 education services office shall establish a program to provide 270.2 statewide licenses to commercial electronic databases of 270.3 periodicals, encyclopedias, and associated reference materials 270.4 for school media centersand, public libraries, state government 270.5 agency libraries, and public or private college or university 270.6 libraries. The commissioner, in consultation with Minitex and 270.7 in cooperation with the Library Planning Task Force, shall 270.8 solicit proposals for access licenses to commercial vendors of 270.9 the databases. Responses to those proposals shall be evaluated 270.10 by staff of the office of library development and services in 270.11 the department of children, families, and learning, Minitex 270.12 staff, and a representative panel of librarians and school media 270.13 specialistsand public librarians. 270.14 Subd. 2. [ELIGIBILITY.] Access to the selected databases 270.15 shall be made available to aschool or school district that is a270.16member of a multicounty, multitype library system as defined in270.17Minnesota Statutes, section 134.001, subdivision 6, or a public270.18library as defined in Minnesota Statutes, section 134.001,270.19subdivision 2, that is a member of a multicounty, multitype270.20library systemschool media center or library that is eligible 270.21 to participate in MnLink. With appropriate authentication any 270.22 user ofan eligible librarya school media center or library 270.23 that is eligible to participate in MnLink may have access to the 270.24 databases from a remote site. 270.25Subd. 3. [RESOURCE GRANTS.] Graduation rule resource270.26grants are available for the purposes of this section.270.27 Sec. 4. [APPROPRIATIONS.] 270.28 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 270.29 LEARNING.] The sums indicated in this section are appropriated 270.30 from the general fund to the department of children, families, 270.31 and learning for the fiscal years designated. 270.32 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 270.33 according to Minnesota Statutes, sections 134.32 to 134.35: 270.34 $8,495,000 ..... 2000 270.35 $8,570,000 ..... 2001 270.36 The 2000 appropriation includes $782,000 for 1999 and 271.1 $7,713,000 for 2000. 271.2 The 2001 appropriation includes $857,000 for 2000 and 271.3 $7,713,000 for 2001. 271.4 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 271.5 grants according to Minnesota Statutes, sections 134.353 and 271.6 134.354, to multicounty, multitype library systems: 271.7 $903,000 ..... 2000 271.8 $903,000 ..... 2001 271.9 The 2000 appropriation includes $90,000 for 1999 and 271.10 $813,000 for 2000. 271.11 The 2001 appropriation includes $90,000 for 2000 and 271.12 $813,000 for 2001. 271.13 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 271.14 grants to regional public library systems under Minnesota 271.15 Statutes, section 125B.20, subdivision 3: 271.16 $1,700,000 ..... 2000 271.17 $1,700,000 ..... 2001 271.18 Any balance in the first year does not cancel but is 271.19 available in the second year. 271.20 Subd. 5. [LIBRARY FOR THE BLIND.] For compact shelving, 271.21 technology, and staffing for the Minnesota library for the blind 271.22 and physically handicapped: 271.23 $550,000 ..... 2000 271.24 Subd. 6. [DATABASE ACCESS PROGRAM.] For the database 271.25 access program for public libraries and school media centers 271.26 under section 3: 271.27 $350,000 ..... 2000 271.28 $350,000 ..... 2001 271.29 ARTICLE 9 271.30 STATE AGENCIES 271.31 Section 1. Minnesota Statutes 1998, section 125A.64, is 271.32 amended by adding a subdivision to read: 271.33 Subd. 6. [EXEMPTION TO LABOR DAY SCHOOL START 271.34 RESTRICTION.] Notwithstanding Minnesota Statutes, section 271.35 120A.40, subdivision 1, the board of the Minnesota state 271.36 academies for the deaf and blind may begin the school year any 272.1 day prior to September 1. 272.2 Sec. 2. Minnesota Statutes 1998, section 129C.10, is 272.3 amended by adding a subdivision to read: 272.4 Subd. 8. [EXEMPTION TO LABOR DAY SCHOOL START 272.5 RESTRICTION.] Notwithstanding Minnesota Statutes, section 272.6 120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 272.7 center for arts education may begin the school year any day 272.8 prior to September 1. 272.9 Sec. 3. Minnesota Statutes 1998, section 626.556, is 272.10 amended by adding a subdivision to read: 272.11 Subd. 3b. [AGENCY RESPONSIBLE FOR ASSESSING OR 272.12 INVESTIGATING REPORTS OF MALTREATMENT.] The department of 272.13 children, families, and learning is the agency responsible for 272.14 assessing or investigating allegations of child maltreatment in 272.15 schools as defined in sections 120A.05, subdivisions 9, 11, and 272.16 13; and 124D.10. 272.17 Sec. 4. Minnesota Statutes 1998, section 626.556, 272.18 subdivision 10b, is amended to read: 272.19 Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 272.20 FACILITY.] (a) This section applies to the commissioner of 272.21 children, families, and learning. The commissioner of the 272.22 agency responsible for assessing or investigating the report 272.23 shall immediately investigate if the report alleges that: 272.24 (1) a child who is in the care of a facility as defined in 272.25 subdivision 2 is neglected, physically abused, or sexually 272.26 abused by an individual in that facility, or has been so 272.27 neglected or abused by an individual in that facility within the 272.28 three years preceding the report; or 272.29 (2) a child was neglected, physically abused, or sexually 272.30 abused by an individual in a facility defined in subdivision 2, 272.31 while in the care of that facility within the three years 272.32 preceding the report. 272.33 The commissioner shall arrange for the transmittal to the 272.34 commissioner of reports received by local agencies and may 272.35 delegate to a local welfare agency the duty to investigate 272.36 reports. In conducting an investigation under this section, the 273.1 commissioner has the powers and duties specified for local 273.2 welfare agencies under this section. The commissioner or local 273.3 welfare agency may interview any children who are or have been 273.4 in the care of a facility under investigation and their parents, 273.5 guardians, or legal custodians. 273.6 (b) Prior to any interview, the commissioner or local 273.7 welfare agency shall notify the parent, guardian, or legal 273.8 custodian of a child who will be interviewed in the manner 273.9 provided for in subdivision 10d, paragraph (a). If reasonable 273.10 efforts to reach the parent, guardian, or legal custodian of a 273.11 child in an out-of-home placement have failed, the child may be 273.12 interviewed if there is reason to believe the interview is 273.13 necessary to protect the child or other children in the 273.14 facility. The commissioner or local agency must provide the 273.15 information required in this subdivision to the parent, 273.16 guardian, or legal custodian of a child interviewed without 273.17 parental notification as soon as possible after the interview. 273.18 When the investigation is completed, any parent, guardian, or 273.19 legal custodian notified under this subdivision shall receive 273.20 the written memorandum provided for in subdivision 10d, 273.21 paragraph (c). 273.22 (c) In conducting investigations under this subdivision the 273.23 commissioner or local welfare agency shall obtain access to 273.24 information consistent with subdivision 10, paragraphs (h), (i), 273.25 and (j). 273.26 (d) Except for foster care and family child care, the 273.27 commissioner has the primary responsibility for the 273.28 investigations and notifications required under subdivisions 10d 273.29 and 10f for reports that allege maltreatment related to the care 273.30 provided by or in facilities licensed by the commissioner. The 273.31 commissioner may request assistance from the local social 273.32 service agency. 273.33 Sec. 5. [REVISOR INSTRUCTION.] 273.34 In the next and subsequent editions of Minnesota Statutes 273.35 and Minnesota Rules, the revisor shall change all references of 273.36 the "Lola and Rudy Perpich Minnesota center for arts education" 274.1 to the "Perpich center for arts education." 274.2 Sec. 6. [TRANSFER OF PROGRAMS.] 274.3 The powers and duties of the department of children, 274.4 families, and learning with respect to drug policy and violence 274.5 prevention under Minnesota Statutes 1998, sections 119A.25, 274.6 119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 274.7 and 119A.34, are transferred to the department of public safety 274.8 under Minnesota Statutes, section 15.039. 274.9 Sec. 7. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 274.10 AND LEARNING.] 274.11 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 274.12 LEARNING.] The sums indicated in this section are appropriated 274.13 from the general fund unless otherwise indicated to the 274.14 department of children, families, and learning for the fiscal 274.15 years designated. 274.16 Subd. 2. [TEACHING AND LEARNING PROGRAM.] (a) For the 274.17 teaching and learning program in the department of children, 274.18 families, and learning: 274.19 $9,979,000 ..... 2000 274.20 $9,926,000 ..... 2001 274.21 (b) Any balance the first year does not cancel but is 274.22 available in the second year. 274.23 (c) $21,000 each year is from the trunk highway fund. 274.24 (d) $621,000 in 2000 and $629,000 in 2001 is for the 274.25 academic excellence foundation. 274.26 (e) $673,000 in 2000 and $678,000 in 2001 is for the board 274.27 of teaching. 274.28 (f) Notwithstanding Minnesota Statutes, section 15.53, 274.29 subdivision 2, the commissioner of children, families, and 274.30 learning may contract with a school district for a period no 274.31 longer than five consecutive years to work in the development or 274.32 implementation of the graduation rule. The commissioner may 274.33 contract for services and expertise as necessary. The contracts 274.34 are not subject to Minnesota Statutes, section 16B.06. 274.35 Subd. 3. [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 274.36 development program in the department of children, families, and 275.1 learning: 275.2 $1,162,000 ..... 2000 275.3 $1,183,000 ..... 2001 275.4 Any balance the first year does not cancel but is available 275.5 in the second year. 275.6 Subd. 4. [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 275.7 For the management and support services program in the 275.8 department of children, families, and learning: 275.9 $16,987,000 ..... 2000 275.10 $14,421,000 ..... 2001 275.11 (b) Any balance the first year does not cancel but is 275.12 available in the second year. 275.13 (c) $165,000 in 2000 is for the state board of education. 275.14 Any functions of the state board of education that are not 275.15 specifically transferred to another agency are transferred to 275.16 the department of children, families, and learning under 275.17 Minnesota Statutes, section 15.039. For the position that is 275.18 classified, upon transferring the responsibilities, the current 275.19 incumbent is appointed to the classified position without exam 275.20 or probationary period. 275.21 (d) $2,000,000 in 2000 is for litigation costs and may only 275.22 be used for those purposes. This is a one-time appropriation. 275.23 (e) The commissioner of children, families, and learning 275.24 must provide a written update of their strategic plan for 275.25 technology to the department of finance and the office of 275.26 technology by April 1, 2000. 275.27 Subd. 5. [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 275.28 office of community services program in the department of 275.29 children, families, and learning: 275.30 $4,188,000 ..... 2000 275.31 $4,255,000 ..... 2001 275.32 Any balance the first year does not cancel but is available 275.33 the second year. 275.34 Sec. 8. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 275.35 CENTER FOR ARTS EDUCATION.] 275.36 The sums indicated in this section are appropriated from 276.1 the general fund to the center for arts education for the fiscal 276.2 years designated: 276.3 $7,239,000 ..... 2000 276.4 $7,400,000 ..... 2001 276.5 Of each year's appropriation, $154,000 is to fund artist 276.6 and arts organization participation in the education residency 276.7 and education technology projects, $75,000 is for school support 276.8 for the residency project, $121,000 is for further development 276.9 of the partners: arts and school for students (PASS) program, 276.10 including pilots, and $220,000 is to fund the center for arts 276.11 education base for asset preservation and facility repair. The 276.12 guidelines for the education residency project and the pass 276.13 program shall be developed and defined by the center for arts 276.14 education in cooperation with the Minnesota arts board. The 276.15 Minnesota arts board shall participate in the review and 276.16 allocation process. The center for arts education and the 276.17 Minnesota arts board shall cooperate to fund these projects. 276.18 Any balance in the first year does not cancel but is 276.19 available in the second year. 276.20 Sec. 9. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 276.21 (a) The sums indicated in this section are appropriated 276.22 from the general fund to the Minnesota state academies for the 276.23 deaf and the blind for the fiscal years designated: 276.24 $10,125,000 ..... 2000 276.25 $10,344,000 ..... 2001 276.26 (b) Any balance in the first year does not cancel but is 276.27 available in the second year. 276.28 (c) $75,000 each year is for asset preservation and 276.29 facility repair. 276.30 (d) $15,000 each year is for the cost of holding board 276.31 meetings in Faribault. 276.32 Sec. 10. [REVISOR INSTRUCTION.] 276.33 In the next and subsequent editions of Minnesota Statutes 276.34 the revisor shall renumber each section in column A with the 276.35 corresponding number in column B. The revisor shall correct all 276.36 cross-references to be consistent with the renumbering. 277.1 Column A Column B 277.2 119A.25 299A.291 277.3 119A.26 299A.292 277.4 119A.27 299A.293 277.5 119A.28 299A.294 277.6 119A.29 299A.295 277.7 119A.31 299A.296 277.8 119A.32 299A.297 277.9 119A.33 299A.298 277.10 119A.34 299A.299 277.11 Sec. 11. [REPEALER.] 277.12 Minnesota Statutes 1998, section 119A.04, subdivision 5, is 277.13 repealed. 277.14 ARTICLE 10 277.15 EDUCATION CODE; COMPULSORY ATTENDANCE 277.16 Section 1. Minnesota Statutes 1998, section 120A.05, is 277.17 amended by adding a subdivision to read: 277.18 Subd. 3a. [CHARTER SCHOOL.] "Charter school" means a 277.19 public school formed according to section 124D.20. 277.20 Sec. 2. Minnesota Statutes 1998, section 120A.05, is 277.21 amended by adding a subdivision to read: 277.22 Subd. 11a. [PUBLIC SCHOOL.] "Public school" means a school 277.23 that receives state funds, provides an education to students 277.24 needed to meet outcomes or standards determined by the state, 277.25 and is accountable for the services it provides to students. 277.26 Sec. 3. Minnesota Statutes 1998, section 120A.22, 277.27 subdivision 1, is amended to read: 277.28 Subdivision 1. [PARENTAL RESPONSIBILITY.] The parent of a 277.29 child is primarily responsible for assuring that the child 277.30 acquires knowledge and skills that are essential for effective 277.31 citizenship and that the child is enrolled in school or receives 277.32 other instruction. 277.33 Sec. 4. Minnesota Statutes 1998, section 120A.22, 277.34 subdivision 5, is amended to read: 277.35 Subd. 5. [AGES AND TERMS.] (a) Every child between seven 277.36 and 16 years of age must receive instruction. Every child under 278.1 the age of seven who is enrolled in a half-day kindergarten, or 278.2 a full-day kindergarten program on alternate days, or other 278.3 kindergarten programs shall receive instruction. Except as 278.4 provided in subdivision 6, a parent may withdraw a child under 278.5 the age of seven from enrollment at any time. 278.6 (b)A school district by annual board action may require278.7children subject to this subdivision to receive instruction in278.8summer school. A district that acts to require children to278.9receive instruction in summer school shall establish at the time278.10of its action the criteria for determining which children must278.11receive instruction.If a school board determines that some 278.12 students in the district must attend summer school, then the 278.13 truancy laws of chapters 260 and 260A apply to the students 278.14 required to attend summer school. 278.15 ARTICLE 11 278.16 CURRICULUM AND ASSESSMENT 278.17 Section 1. Minnesota Statutes 1998, section 120B.11, 278.18 subdivision 5, is amended to read: 278.19 Subd. 5. [REPORT.] (a) By October 1 of each year, the 278.20 school board shall use standard statewide reporting procedures 278.21 the commissioner develops and adopt a report that includes the 278.22 following: 278.23 (1) student performance goals for meeting state graduation 278.24 standards adopted for that year; 278.25 (2) results of local assessment data, and any additional 278.26 test data; 278.27 (3) the annual school district improvement plans; 278.28 (4) information about district and learning site progress 278.29 in realizing previously adopted improvement plans; and 278.30 (5) the amount and type of revenue attributed to each 278.31 education site as defined in section 123B.04, subdivision 2. 278.32 (b) The school board shall publish the report in the local 278.33 newspaper with the largest circulation in the district or by 278.34 mail. The board shall make a copy of the report available to 278.35 the public for inspection. The board shall send a copy of the 278.36 report to the commissioner of children, families, and learning 279.1 by October 15 of each year. 279.2 (c) The title of the report shall contain the name and 279.3 number of the school district and read "Annual Report on 279.4 Curriculum, Instruction, and Student Performance."The report279.5must include at least the following information about advisory279.6committee membership:279.7(1) the name of each committee member and the date when279.8that member's term expires;279.9(2) the method and criteria the school board uses to select279.10committee members; and279.11(3) the date by which a community resident must apply to279.12next serve on the committee.279.13 Sec. 2. [REPEALER.] 279.14 Minnesota Statutes 1998, sections 120B.10; 120B.11, 279.15 subdivisions 3, 4, and 7; and 120B.24, are repealed. 279.16 ARTICLE 12 279.17 STUDENT RIGHTS, RESPONSIBILITIES, AND BEHAVIOR 279.18 Section 1. Minnesota Statutes 1998, section 121A.06, is 279.19 amended to read: 279.20 121A.06 [REPORTS OF DANGEROUS WEAPON INCIDENTS IN SCHOOL 279.21 ZONES.] 279.22 Subdivision 1. [DEFINITIONS.] As used in this section: 279.23 (1) "dangerous weapon" has the meaning given it in section 279.24 609.02, subdivision 6; and 279.25 (2)"school" has the meaning given it in section 120A.22,279.26subdivision 4; and279.27(3)"school zone" has the meaning given it in section 279.28 152.01, subdivision 14a, clauses (1) and (3). 279.29 Subd. 2. [REPORTS; CONTENT.]By January 1, 1994,The 279.30 commissioner, in consultation with the criminal and juvenile279.31information policy group,shalldevelopmaintain a standardized 279.32 form to be used by schools to report incidents involving the use 279.33 or possession of a dangerous weapon in school zones.The form279.34shall include the following information:279.35(1) a description of each incident, including a description279.36of the dangerous weapon involved in the incident;280.1(2) where, at what time, and under what circumstances the280.2incident occurred;280.3(3) information about the offender, other than the280.4offender's name, including the offender's age; whether the280.5offender was a student and, if so, where the offender attended280.6school; and whether the offender was under school expulsion or280.7suspension at the time of the incident;280.8(4) information about the victim other than the victim's280.9name, if any, including the victim's age; whether the victim was280.10a student and, if so, where the victim attended school; and if280.11the victim was not a student, whether the victim was employed at280.12the school;280.13(5) the cost of the incident to the school and to the280.14victim; and280.15(6) the action taken by the school administration to280.16respond to the incident.280.17The commissioner also shall develop an alternative280.18reporting format that allows school districts to provide280.19aggregate data, with an option to use computer technology to280.20report the data.280.21 Subd. 3. [REPORTS; FILING REQUIREMENTS.] ByFebruary 1 and280.22 July 1 of each year, each school shall report incidents 280.23 involving the use or possession of a dangerous weapon in school 280.24 zones to the commissioner. The reports must be made on the 280.25 standardized forms or using the alternative format developed by 280.26 the commissioner under subdivision 2. The commissioner shall 280.27 compile the information it receives from the schools and report 280.28 it annually to the commissioner of public safety, the criminal 280.29 and juvenile information policy group, and the legislature. 280.30 Sec. 2. Minnesota Statutes 1998, section 121A.11, 280.31 subdivision 1, is amended to read: 280.32 Subdivision 1. [DISPLAYED BY SCHOOLS.] Every public school 280.33 in Minnesota must display an appropriate United States flag when 280.34 in session.The flag shall be displayed upon the school grounds280.35or outside the school building, on a proper staff, on every280.36legal holiday occurring during the school term and at such other281.1times as the board of the district may direct.The flag must be 281.2 displayed within the principal rooms of the school building at 281.3 all other times while school is in session. 281.4 Sec. 3. Minnesota Statutes 1998, section 121A.15, is 281.5 amended to read: 281.6 121A.15 [HEALTH STANDARDS; IMMUNIZATIONS; SCHOOL CHILDREN.] 281.7 Subdivision 1. [IMMUNIZATION REQUIREMENT.] Except as 281.8 provided in subdivisions 3, 4, and 10, no person over two months 281.9 old may be allowed to enroll or remain enrolled in any 281.10 elementary or secondary school or child care facility in this 281.11 state until the person has submitted to the administratoror281.12other person having general control and supervision of the281.13school or child care facility,one of the following statements: 281.14 (1) a statement froma physician or a public clinic which281.15provides immunizationsan immunization provider stating that the 281.16 person has received immunization, consistent with medically 281.17 acceptable standards, against measles after having attained the 281.18 age of 12 months, rubella, diphtheria, tetanus, pertussis, 281.19 polio, mumps, haemophilus influenza type b, and hepatitis B; or 281.20 (2) a statement froma physician or a public clinic which281.21provides immunizationsan immunization provider stating that the 281.22 person has received immunizations, consistent with medically 281.23 acceptable standards, against measles after having attained the 281.24 age of 12 months, rubella, mumps, and haemophilus influenza type 281.25 b and that the person has commenced a schedule of immunizations 281.26 for diphtheria, tetanus, pertussis, polio, and hepatitis B and 281.27 which indicates the month and year of each immunization received. 281.28 Subd. 2. [SCHEDULE OF IMMUNIZATIONS.] No person who has 281.29 commenced a treatment schedule of immunization pursuant to 281.30 subdivision 1, clause (2), may remain enrolled in any child care 281.31 facility, elementary, or secondary school in this state after 18 281.32 months of enrollment unless there is submitted to the 281.33 administrator, or other person having general control and281.34supervision of the school or child care facility,a statement 281.35 froma physician or a public clinic which provides immunizations281.36 an immunization provider that the person has completed the 282.1 primary schedule of immunizations for diphtheria, tetanus, 282.2 pertussis, polio, and hepatitis B. The statement must include 282.3 the month, day, and year of each additional immunization 282.4 received. For a child less than seven years of age, a primary 282.5 schedule of immunizations shall consist of four doses of vaccine 282.6 for diphtheria, tetanus, and pertussis and three doses of 282.7 vaccine for poliomyelitis and hepatitis B. For a child seven 282.8 years of age or older, a primary schedule of immunizations shall 282.9 consist of three doses of vaccine for diphtheria, tetanus, 282.10 polio, and hepatitis B as specified in subdivision 10. 282.11 Subd. 3. [EXEMPTIONS FROM IMMUNIZATIONS.] (a) If a person 282.12 is at least seven years old and has not been immunized against 282.13 pertussis, the person must not be required to be immunized 282.14 against pertussis. 282.15 (b) If a person is at least 18 years old and has not 282.16 completed a series of immunizations against poliomyelitis, the 282.17 person must not be required to be immunized against 282.18 poliomyelitis. 282.19 (c) If a statement, signed by a physician, is submitted to 282.20 the administratoror other person having general control and282.21supervision of the school or child care facilitystating that an 282.22 immunization is contraindicated for medical reasons or that 282.23 laboratory confirmation of the presence of adequate immunity 282.24 exists, the immunization specified in the statement need not be 282.25 required. 282.26 (d) If a notarized statement signed by the minor child's 282.27 parent or guardian or by the emancipated person is submitted to 282.28 the administratoror other person having general control and282.29supervision of the school or child care facilitystating that 282.30 the person has not been immunized as prescribed in subdivision 1 282.31 because of the conscientiously held beliefs of the parent or 282.32 guardian of the minor child or of the emancipated person, the 282.33 immunizations specified in the statement shall not be required. 282.34 This statement must also be forwarded to the commissioner of the 282.35 department of health. 282.36 (e) If the person is under 15 months, the person is not 283.1 required to be immunized against measles, rubella, or mumps. 283.2 (f) If a person is at least five years old and has not been 283.3 immunized against haemophilus influenza type b, the person is 283.4 not required to be immunized against haemophilus influenza type 283.5 b. 283.6 Subd. 4. [SUBSTITUTE IMMUNIZATION STATEMENT.] (a) A person 283.7 who is enrolling or enrolled in an elementary or secondary 283.8 school or child care facility may substitute a statement from 283.9 the emancipated person or a parent or guardian if the person is 283.10 a minor child in lieu of the statement froma physician or283.11public clinic which provides immunizationsan immunization 283.12 provider. If the statement is from a parent or guardian or 283.13 emancipated person, the statement must indicate the month and 283.14 year of each immunization given. 283.15 (b) In order for the statement to be acceptable for a 283.16 person who is enrolling in an elementary school and who is six 283.17 years of age or younger, it must indicate that the following was 283.18 given: no less than one dose of vaccine each for measles, 283.19 mumps, and rubellagiven separately or in combination; no less 283.20 than four doses of vaccine for poliomyelitis, unless the third 283.21 dose was given after the fourth birthday, then three doses are 283.22 minimum; no less than five doses of vaccine for diphtheria, 283.23 tetanus, and pertussis, unless the fourth dose was given after 283.24 the fourth birthday, then four doses are minimum; and no less 283.25 than three doses of vaccine for hepatitis B as specified in 283.26 subdivision 10. 283.27 (c) In order for the statement to be consistent with 283.28 subdivision 10 and acceptable for a person who is enrolling in 283.29 an elementary or secondary school and is age seven through age 283.30 19, the statement must indicate that the person has received no 283.31 less than one dose of vaccine each for measles, mumps, and 283.32 rubellagiven separately or in combination, and no less than 283.33 three doses of vaccine for poliomyelitis, diphtheria, tetanus, 283.34 and hepatitis B. 283.35 (d) In order for the statement to be acceptable for a 283.36 person who is enrolling in a secondary school, and who was born 284.1 after 1956 and is 20 years of age or older, the statement must 284.2 indicate that the person has received no less than one dose of 284.3 vaccine each for measles, mumps, and rubellagiven separately or284.4in combination, and no less than one dose of vaccine for 284.5 diphtheria and tetanus within the preceding ten years. 284.6 (e) In order for the statement to be acceptable for a 284.7 person who is enrolling in a child care facility and who is at 284.8 least 15 months old but who has not reached five years of age, 284.9 it must indicate that the following were given: no less than 284.10 one dose of vaccine each for measles, mumps, and rubellagiven284.11separately or in combination; no less than one dose of vaccine 284.12 for haemophilus influenza type b; no less than four doses of 284.13 vaccine for diphtheria, tetanus, and pertussis; and no less than 284.14 three doses of vaccine for poliomyelitis. 284.15 (f) In order for the statement to be acceptable for a 284.16 person who is enrolling in a child care facility and who is five 284.17 or six years of age, it must indicate that the following was 284.18 given: no less than one dose of vaccine each for measles, 284.19 mumps, and rubellagiven separately or in combination; no less 284.20 than four doses of vaccine for diphtheria, tetanus, and 284.21 pertussis; and no less than three doses of vaccine for 284.22 poliomyelitis. 284.23 (g) In order for the statement to be acceptable for a 284.24 person who is enrolling in a child care facility and who is 284.25 seven years of age or older, the statement must indicate that 284.26 the person has received no less than one dose of vaccine each 284.27 for measles, mumps, and rubellagiven separately or in284.28combinationand consistent with subdivision 10, and no less than 284.29 three doses of vaccine for poliomyelitis, diphtheria, and 284.30 tetanus. 284.31(h) The commissioner of health, on finding that any of the284.32above requirements are not necessary to protect the public's284.33health, may suspend for one year that requirement.284.34 Subd. 5. [TRANSFER OF IMMUNIZATION STATEMENTS.] If a 284.35 person transfers from one elementary or secondary school to 284.36 another, the school board of a public school district or the 285.1 administrator of a nonpublic school may allow the person up to a 285.2 maximum of 30 days to submit one or more of the statements as 285.3 specified in subdivision 1 or 3, during which time the person 285.4 may enroll in and attend the school. If a person enrolls in a 285.5 child care facility in which at least 75 percent of children in 285.6 the facility participate on a one-time only or occasional basis 285.7 to a maximum of 45 hours per child, per month, or is placed in a 285.8 facility by a crisis nursery, the person shall be exempt from 285.9 all requirements of this section for up to five consecutive 285.10 days, starting from the first day of attendance. 285.11 Subd. 6. [SUSPENSION OF IMMUNIZATION REQUIREMENT.] The 285.12 commissioner of health, on finding that an immunization required 285.13 pursuant to this section is not necessary to protect the 285.14 public's health, may suspend for one year the requirement that 285.15 children receive that immunization. 285.16 Subd. 7. [FILE ON IMMUNIZATION RECORDS.] Each school or 285.17 child care facility shall maintain on file immunization records 285.18 for all persons in attendance that contain the information 285.19 required by subdivisions 1, 2, and 3. The school shall maintain 285.20 the records for at least five years after the person attains the 285.21 age of majority. The department of health and the board of 285.22 health, as defined in section 145A.02, subdivision 2, in whose 285.23 jurisdiction the school or child care facility is located, shall 285.24 have access to the files maintained pursuant to this 285.25 subdivision. When a person transfers to another elementary or 285.26 secondary school or child care facility, the administratoror285.27other person having general control and supervision of the285.28school or child care facilityshall assist the person's parent 285.29 or guardian in the transfer of the immunization file to the 285.30 person's new school or child care facility within 30 days of the 285.31 transfer. Upon the request of a public or private 285.32 post-secondary educational institution, as defined in section 285.33 135A.14, the administratoror other person having general285.34control or supervision of a schoolshall assist in the transfer 285.35 of a student's immunization file to the post-secondary 285.36 institution. 286.1 Subd. 8. [REPORT.] The administratoror other person286.2having general control and supervision of the elementary or286.3secondary schoolshall file a report with the commissioner on 286.4 all persons enrolled in the school. The superintendent of each 286.5 district shall file a report with the commissioner for all 286.6 persons within the district receiving instruction in a home 286.7 school in compliance with sections 120A.22 and 120A.24. The 286.8 parent of persons receiving instruction in a home school shall 286.9 submit the statements as required by subdivisions 1, 2, 3, and 4 286.10 to the superintendent of the district in which the person 286.11 resides by October 1 of each school year. The school report 286.12 must be prepared on forms developed jointly by the commissioner 286.13 of health and the commissioner of children, families, and 286.14 learning and be distributed to the local districts by the 286.15 commissioner of health. The school report must state the number 286.16 of persons attending the school, the number of persons who have 286.17 not been immunized according to subdivision 1 or 2, and the 286.18 number of persons who received an exemption under subdivision 3, 286.19 clause (c) or (d). The school report must be filed with the 286.20 commissioner of children, families, and learning within 60 days 286.21 of the commencement of each new school term. Upon request, a 286.22 district must be given a 60-day extension for filing the school 286.23 report. The commissioner of children, families, and learning 286.24 shall forward the report, or a copy thereof, to the commissioner 286.25 of health who shall provide summary reports to boards of health 286.26 as defined in section 145A.02, subdivision 2. The administrator 286.27or other person having general control and supervision of the286.28child care facilityshall file a report with the commissioner of 286.29 human services on all persons enrolled in the child care 286.30 facility. The child care facility report must be prepared on 286.31 forms developed jointly by the commissioner of health and the 286.32 commissioner of human services and be distributed to child care 286.33 facilities by the commissioner of health. The child care 286.34 facility report must state the number of persons enrolled in the 286.35 facility, the number of persons with no immunizations, the 286.36 number of persons who received an exemption under subdivision 3, 287.1 clause (c) or (d), and the number of persons with partial or 287.2 full immunization histories. The child care facility report 287.3 must be filed with the commissioner of human services by 287.4 November 1 of each year. The commissioner of human services 287.5 shall forward the report, or a copy thereof, to the commissioner 287.6 of health who shall provide summary reports to boards of health 287.7 as defined in section 145A.02, subdivision 2. The report 287.8 required by this subdivision is not required of a family child 287.9 care or group family child care facility, for prekindergarten 287.10 children enrolled in any elementary or secondary school provided 287.11 services according to sections 125A.05 and 125A.06, nor for 287.12 child care facilities in which at least 75 percent of children 287.13 in the facility participate on a one-time only or occasional 287.14 basis to a maximum of 45 hours per child, per month. 287.15 Subd. 9. [DEFINITIONS.] As used in this section the 287.16 following terms have the meanings given them. 287.17 (a) "Elementary or secondary school" includes any public 287.18 school as defined in section 120A.05, subdivisions 9, 11, 13, 287.19 and 17, or nonpublic school, church, or religious organization, 287.20 or home school in which a child is provided instruction in 287.21 compliance with sections 120A.22 and 120A.24. 287.22 (b) "Person enrolled in any elementary or secondary school" 287.23 means a personborn after 1956 andenrolled in grades 287.24 kindergarten through 12, and a child with a disability receiving 287.25 special instruction and services as required insectionssection 287.26 125A.03to 125A.24 and 125A.65, excluding a child being provided 287.27 services according to section 125A.05,paragraph (c), or287.28125A.06, paragraph (d)subdivisions 3 and 7. 287.29 (c) "Child care facility" includes those child care 287.30 programs subject to licensure under chapter 245A, and Minnesota 287.31 Rules, chapters 9502 and 9503. 287.32 (d) "Family child care" means child care for no more than 287.33 ten children at one time of which no more than six are under 287.34 school age. The licensed capacity must include all children of 287.35 any caregiver when the children are present in the residence. 287.36 (e) "Group family child care" means child care for no more 288.1 than 14 children at any one time. The total number of children 288.2 includes all children of any caregiver when the children are 288.3 present in the residence. 288.4 (f) "Administrator" means any individual having general 288.5 control and supervision of a school or child care facility. 288.6 (g) "Immunization provider" means any physician, health 288.7 care provider, or public clinic that provides immunizations. 288.8 Subd. 10. [REQUIREMENTS FOR IMMUNIZATION STATEMENTS.] A 288.9 statement required to be submitted under subdivisions 1, 2, and 288.10 4 to document evidence of immunization shall include month, day, 288.11 and year for immunizations administered after January 1, 1990. 288.12 (a)For persons enrolled in grades 7 and 12 during the288.131996-1997 school term, the statement must indicate that the288.14person has received a dose of tetanus and diphtheria toxoid no288.15earlier than 11 years of age.288.16(b) Except as specified in paragraph (e), for persons288.17enrolled in grades 7, 8, and 12 during the 1997-1998 school288.18term, the statement must indicate that the person has received a288.19dose of tetanus and diphtheria toxoid no earlier than 11 years288.20of age.288.21(c)Except as specified in paragraph(e)(c), for persons 288.22 enrolled in grades 7 through 12 during the 1998-1999 school term 288.23 and for each year thereafter, the statement must indicate that 288.24 the person has received a dose of tetanus and diphtheria toxoid 288.25 no earlier than 11 years of age. 288.26(d)(b) For persons enrolled in grades 7 through 12during288.27the 1996-1997 school year and for each year thereafter, the 288.28 statement must indicate that the person has received at least 288.29 two doses of vaccine against measles, mumps, and rubella,given288.30alone or separatelyand given not less than one month apart. 288.31(e)(c) A person who has received at least three doses of 288.32 tetanus and diphtheria toxoids, with the most recent dose given 288.33 after age six and before age 11, is not required to have 288.34 additional immunization against diphtheria and tetanus until ten 288.35 years have elapsed from the person's most recent dose of tetanus 288.36 and diphtheria toxoid. 289.1(f)(d) The requirement for hepatitis B vaccination shall 289.2 apply to persons enrolling in kindergarten beginning with the 289.3 2000-2001 school term. 289.4(g)(e) The requirement for hepatitis B vaccination shall 289.5 apply to persons enrolling in grade 7 beginning with the 289.6 2001-2002 school term. 289.7 Subd. 11. [COMMISSIONER OF HUMAN SERVICES; CONTINUED 289.8 RESPONSIBILITIES.] Nothing in this section relieves the 289.9 commissioner of human services of the responsibility, under 289.10 chapter 245A, to inspect and assure that statements required by 289.11 this section are on file at child care programs subject to 289.12 licensure. 289.13 Sec. 4. Minnesota Statutes 1998, section 121A.23, 289.14 subdivision 1, is amended to read: 289.15 Subdivision 1. [AIDS PROGRAM.] Each district must have a 289.16 program to prevent and reduce the risk of acquired immune 289.17 deficiency syndrome (AIDS). The commissioner of children, 289.18 families, and learning, in consultation with the commissioner of 289.19 health, shall assist districts in developing and implementing a 289.20 program to prevent and reduce the risk of acquired immune 289.21 deficiency syndrome.Each district must have a program that289.22includes at least:289.23(1) planning materials, guidelines, and other technically289.24accurate and updated information;289.25(2) a comprehensive, technically accurate, and updated289.26curriculum;289.27(3) cooperation and coordination among districts and SCs;289.28(4) a targeting of adolescents, especially those who may be289.29at high risk of contracting AIDS, for prevention efforts;289.30(5) involvement of parents and other community members;289.31(6) in-service training for appropriate district staff and289.32school board members;289.33(7) collaboration with state agencies and organizations289.34having an AIDS prevention or AIDS risk reduction program;289.35(8) collaboration with local community health services,289.36agencies and organizations having an AIDS prevention or AIDS290.1risk reduction program; and290.2(9) participation by state and local student organizations.290.3The department may provide assistance at a neutral site to290.4a nonpublic school participating in a district's program.290.5District programs must not conflict with the health and wellness290.6curriculum developed under Laws 1987, chapter 398, article 5,290.7section 2, subdivision 7.290.8If a district fails to develop and implement a program to290.9prevent and reduce the risk of AIDS, the department must assist290.10the service cooperative in the region serving that district to290.11develop or implement the program.290.12 Sec. 5. Minnesota Statutes 1998, section 121A.26, is 290.13 amended to read: 290.14 121A.26 [SCHOOL PREASSESSMENT TEAMS.] 290.15 Every public school, and every nonpublic school that 290.16 participates in a school district chemical abuse program shall 290.17 establish a chemical abuse preassessment team. The 290.18 preassessment team must be composed of classroom teachers, 290.19 administrators, and to the extent they exist in each school, 290.20 school nurse, school counselor or psychologist, social worker, 290.21 chemical abuse specialist, and other appropriate professional 290.22 staff. The superintendents or their designees shall designate 290.23 the team members in the public schools. The preassessment team 290.24 is responsible for addressing reports of chemical abuse problems 290.25 and making recommendations for appropriate responses to the 290.26 individual reported cases. Districts shall adopt a process for 290.27 addressing reports of chemical abuse problems. 290.28Within 45 days after receiving an individual reported case,290.29the preassessment team shall make a determination whether to290.30provide the student and, in the case of a minor, the student's290.31parents with information about school and community services in290.32connection with chemical abuse. Data may be disclosed without290.33consent in health and safety emergencies pursuant to section290.3413.32 and applicable federal law and regulations.290.35Notwithstanding section 138.163, destruction of records290.36identifying individual students shall be governed by this291.1section. If the preassessment team decides not to provide a291.2student and, in the case of a minor, the student's parents with291.3information about school or community services in connection291.4with chemical abuse, records created or maintained by the291.5preassessment team about the student shall be destroyed not291.6later than six months after the determination is made. If the291.7preassessment team decides to provide a student and, in the case291.8of a minor, the student's parents with information about school291.9or community services in connection with chemical abuse, records291.10created or maintained by the preassessment team about the291.11student shall be destroyed not later than six months after the291.12student is no longer enrolled in the district.291.13 Sec. 6. Minnesota Statutes 1998, section 121A.27, is 291.14 amended to read: 291.15 121A.27 [SCHOOL AND COMMUNITY ADVISORY TEAM.] 291.16 The superintendent, with the advice of the school board, 291.17 shall establish a school and community advisory team to address 291.18 chemical abuse problems in the district.The school and291.19community advisory team must be composed of representatives from291.20the school preassessment team established in section 121A.26, to291.21the extent possible, law enforcement agencies, county attorney's291.22office, social service agencies, chemical abuse treatment291.23programs, parents, and the business community. The community291.24advisory team shall:291.25(1) build awareness of the problem within the community,291.26identify available treatment and counseling programs for291.27students and develop good working relationships and enhance291.28communication between the schools and other community agencies;291.29and291.30(2) develop a written procedure clarifying the notification291.31process to be used by the chemical abuse preassessment team291.32established under section 121A.26 when a student is believed to291.33be in possession of or under the influence of alcohol or a291.34controlled substance. The procedure must include contact with291.35the student, and the student's parents or guardian in the case291.36of a minor student.292.1 Sec. 7. Minnesota Statutes 1998, section 121A.28, is 292.2 amended to read: 292.3 121A.28 [LAW ENFORCEMENT RECORDS.] 292.4 A law enforcement agency shall provide notice of any drug 292.5 incident occurring within the agency's jurisdiction, in which 292.6 the agency has probable cause to believe a student violated 292.7 section 152.021, 152.022, 152.023, 152.024, 152.025, 152.027, 292.8 152.097, or 340A.503, subdivision 1, 2, or 3. The notice shall 292.9 be in writing and shall be provided, within two weeks after an 292.10 incident occurs, to thechemical abuse preassessment team in the292.11 school where the student is enrolled. 292.12 Sec. 8. Minnesota Statutes 1998, section 121A.29, 292.13 subdivision 1, is amended to read: 292.14 Subdivision 1. [TEACHER'S DUTY.] A teacher in a nonpublic 292.15 school participating in a school district chemical use program, 292.16 or a public school teacher, who knows or has reason to believe 292.17 that a student is using, possessing, or transferring alcohol or 292.18 a controlled substance while on the school premises or involved 292.19 in school-related activities, shall immediately notify 292.20 theschool's chemical abuse preassessment teamschool of this 292.21 information. A teacher who complies with this section shall be 292.22 defended and indemnified under section 466.07, subdivision 1, in 292.23 any action for damages arising out of the compliance. 292.24 Sec. 9. Minnesota Statutes 1998, section 121A.32, 292.25 subdivision 1, is amended to read: 292.26 Subdivision 1. [REQUIREMENT TO WEAR EYE PROTECTIVE 292.27 DEVICES.] (a) As a condition of enrollment in a course or 292.28 activity, everypersonstudent shall wear industrial quality eye 292.29 protective devices when participating in, observing or 292.30 performing any function in connection with,anycourses or 292.31 activities taking place in eye protection areas, as defined in 292.32 subdivision 3, of anyschool, college, university or other292.33educationalelementary or secondary institution in the state. 292.34 (b) Industrial quality eye protective devices are defined 292.35 as those meeting the standards of the American National 292.36 Standards Institute, currently identified as ANSI 287.1-1968. 293.1 (c) Any student failing to comply with this requirement may 293.2 be temporarily suspended from participation in that activity. 293.3 Repeated failure to comply with this requirement shall result in 293.4 cancellation of the student from the activity or course. 293.5 Sec. 10. Minnesota Statutes 1998, section 121A.34, is 293.6 amended to read: 293.7 121A.34 [SCHOOL SAFETY PATROLS.] 293.8 Subdivision 1. [ESTABLISHMENT.]In the exercise of293.9authorized control and supervision over pupils attending schools293.10and other educational institutions, both public and private,The 293.11 governing board or other directing authority of anysuchschool 293.12 or institution is empowered to authorize the organization and 293.13 supervision of school safety patrols for the purpose of 293.14 influencing and encouraging other pupils to refrain from 293.15 crossing public highways at points other than regular crossings 293.16 and for the purpose of directing pupils when and where to cross 293.17 highways. 293.18 Subd. 2. [APPOINTMENT OF MEMBERS.]Unless the parents or293.19guardian of a pupil object in writing to the school authorities293.20to the appointment of the pupil on a school safety patrol, it is293.21lawful for anyA pupil over nine yearsof age toold may be 293.22 appointedand designated as a member ofto the patrolin any293.23school in which. If there are no pupilswho have attained such293.24ageat least nine years old, then any pupil in the highest grade 293.25thereinin that school may besoappointedand293.26designated. The pupil's parent or guardian may object to the 293.27 appointment in writing to school authorities. School 293.28 authorities may also appoint and designate nonpupil adults as 293.29 members of a school safety patrol on a voluntary or for-hire 293.30 basis. 293.31 Subd. 3. [LIABILITY NOT TO ATTACH.]No liability shall293.32attach either to theA school, educational institution, 293.33 governing board, directing authority, or any individual 293.34 director, board member, superintendent, principal, teacher, or 293.35 other school authority by virtue of the organization, 293.36 maintenance, or operation ofsucha school safety patrol shall 294.1 not be liable because of injuries sustained by any pupil, 294.2 whether a member of the patrol or otherwiseby reason ofdue to 294.3 the operation and maintenance of the patrol. 294.4 Subd. 4. [IDENTIFY, OPERATION.] Identification and 294.5 operation of school safety patrols shall be uniform throughout 294.6 the state and the method of identification and signals to be 294.7 used shall be as prescribed by the commissioner of public 294.8 safety.School safety patrol members may wear fluorescent294.9reflective vests.294.10 Sec. 11. Minnesota Statutes 1998, section 121A.55, is 294.11 amended to read: 294.12 121A.55 [POLICIES TO BE ESTABLISHED.] 294.13 (a) The commissioner of children, families, and learning 294.14 shall promulgate guidelines to assist each school board. Each 294.15 school board shall establish uniform criteria for dismissal and 294.16 adopt written policies and rules to effectuate the purposes of 294.17 sections 121A.40 to 121A.56. The policies shall emphasize 294.18 preventing dismissals through early detection of problems and 294.19 shall be designed to address students' inappropriate behavior 294.20 from recurring. The policies shall recognize the continuing 294.21 responsibility of the school for the education of the pupil 294.22 during the dismissal period. The alternative educational 294.23 services, if the pupil wishes to take advantage of them, must be 294.24 adequate to allow the pupil to make progress towards meeting the 294.25 graduation standards adopted under section 120B.02 and help 294.26 prepare the pupil for readmission. 294.27 (b) An area learning center under section 123A.05 may not 294.28 prohibit an expelled or excluded pupil from enrolling solely 294.29 because a district expelled or excluded the pupil. The board of 294.30 the area learning center may use the provisions of the Pupil 294.31 Fair Dismissal Act to exclude a pupil or to require an admission 294.32 plan. 294.33(c) The commissioner shall actively encourage and assist294.34school districts to cooperatively establish alternative294.35educational services within school buildings or at alternative294.36program sites that offer instruction to pupils who are dismissed295.1from school for willfully engaging in dangerous, disruptive, or295.2violent behavior, including for possessing a firearm in a school295.3zone.295.4 Sec. 12. Minnesota Statutes 1998, section 121A.69, 295.5 subdivision 3, is amended to read: 295.6 Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall 295.7 adopt a written policy governing student or staff hazing. The 295.8 policy must apply to student behavior that occurs on or off 295.9 school property and during and after school hours.The policy295.10must include reporting procedures and disciplinary consequences295.11for violating the policy. Disciplinary consequences must be295.12sufficiently severe to deter violations and appropriately295.13discipline prohibited behavior. Disciplinary consequences must295.14conform with sections 121A.41 to 121A.56. Each school must295.15include the policy in the student handbook on school policies.295.16 Sec. 13. [REPEALER.] 295.17 Minnesota Statutes 1998, sections 121A.03, subdivision 3; 295.18 121A.11, subdivision 2; 121A.16; 121A.23, subdivision 2; 295.19 121A.32, subdivisions 2, 4, and 5; and 121A.41, subdivision 3, 295.20 are repealed. 295.21 ARTICLE 13 295.22 TEACHERS AND OTHER EDUCATORS 295.23 Section 1. Minnesota Statutes 1998, section 122A.09, 295.24 subdivision 6, is amended to read: 295.25 Subd. 6. [REGISTER OF PERSONS LICENSED.] The executive 295.26 secretary of the board of teaching shall keep a record of the 295.27 proceedings of and a register of all persons licensed pursuant 295.28 to the provisions of this chapter.The register must show the295.29name, address, license number and the renewal of the license.295.30The board must on July 1, of each year or as soon thereafter as295.31is practicable, compile a list of such duly licensed teachers295.32and transmit a copy of the list to the board.A copy of the 295.33 register must be available during business hours at the office 295.34 of the board to any interested person. 295.35 Sec. 2. Minnesota Statutes 1998, section 122A.15, is 295.36 amended to read: 296.1 122A.15 [TEACHERS, SUPERVISORY AND SUPPORT PERSONNEL, 296.2 DEFINITIONS, LICENSURE.] 296.3 Subdivision 1. [TEACHERS.] The term "teachers" for the 296.4 purpose of licensure, means all persons employed in a public 296.5 school or education district or by a service cooperative as 296.6 members of the instructional, supervisory, and support staff 296.7 including superintendents, principals, supervisors, secondary 296.8 vocational and other classroom teachers, librarians, counselors, 296.9 school psychologists, school nurses, school social workers, 296.10 audio-visual directors and coordinators, recreation personnel, 296.11 media generalists, media supervisors, andspeech therapists296.12 educational speech-language pathologists. 296.13 Subd. 2. [SUPERVISORY PERSONNEL.] "Supervisory personnel" 296.14 for the purpose of licensure means superintendents, principals, 296.15 and professional employees who devote 50 percent or more of 296.16 their time to administrative or supervisory duties over other 296.17 personnel, and includes athletic coaches. 296.18 Sec. 3. Minnesota Statutes 1998, section 122A.22, is 296.19 amended to read: 296.20 122A.22 [DISTRICT RECORDING OF TEACHER LICENSES.] 296.21 No person shall be accounted a qualified teacher until the 296.22 person has filed for record with the district superintendent 296.23 where the person intends to teach a license, or certified copy 296.24 of a license, authorizing the person to teachschool in the296.25district school system. 296.26 Sec. 4. Minnesota Statutes 1998, section 122A.40, 296.27 subdivision 3, is amended to read: 296.28 Subd. 3. [HIRING, DISMISSING.] School boards must hire or 296.29 dismiss teachers atdulyappropriately called meetings.Where a296.30husband and wife, brother and sister, or two brothers or296.31sisters, constitute a quorum, no contract employing a teacher296.32shall be made or authorized except upon the unanimous vote of296.33the full board. A teacher related by blood or marriage, within296.34the fourth degree, computed by the civil law, to a board member296.35shall not be employed except by a unanimous vote of the full296.36board.The initial employment of the teacher in the district 297.1 must be by written contract, signed by the teacher and by the 297.2 chair and clerk. All subsequent employment of the teacher in 297.3 the district must be by written contract, signed by the teacher 297.4 and by the chair and clerk, except where there is a master 297.5 agreement covering the employment of the teacher. Contracts for 297.6 teaching or supervision of teaching can be made only with 297.7 qualified teachers.A teacher shall not be required to reside297.8within the employing district as a condition to teaching297.9employment or continued teaching employment.297.10 Sec. 5. Minnesota Statutes 1998, section 122A.40, 297.11 subdivision 5, is amended to read: 297.12 Subd. 5. [PROBATIONARY PERIOD.] The first three 297.13 consecutive years of a teacher's first teaching experience in 297.14 Minnesota in a single district is deemed to be a probationary 297.15 period of employment, and after completion thereof, the 297.16 probationary period in each district in which the teacher is 297.17 thereafter employed shall be one year. The school board must 297.18 adopt a plan for written evaluation of teachers during the 297.19 probationary period. Evaluation must occur at least three times 297.20 each year for a teacher performing services on 120 or more 297.21 school days, at least two times each year for a teacher 297.22 performing services on 60 to 119 school days, and at least one 297.23 time each year for a teacher performing services on fewer than 297.24 60 school days. Days devoted to parent-teacher conferences, 297.25 teachers' workshops, and other staff development opportunities 297.26 and days on which a teacher is absent from school must not be 297.27 included in determining the number of school days on which a 297.28 teacher performs services. During the probationary period any 297.29 annual contract with any teacher may or may not be renewed as 297.30 the school board shall see fit.However,The board must give 297.31 anysuchprobationary teacher whose contract it declines to 297.32 renew for the following school year written notice to that 297.33 effect before June 1. If the teacher requests reasons for any 297.34 nonrenewal of a teaching contract, the board must give the 297.35 teacher its reason in writing, including a statement that 297.36 appropriate supervision was furnished describing the nature and 298.1 the extent of such supervision furnished the teacher during the 298.2 employment by the board, within ten days after receiving such 298.3 request. The school board may, after a hearing held upon due 298.4 notice, discharge a teacher during the probationary period for 298.5 cause, effective immediately, under section 122A.44. 298.6 Sec. 6. Minnesota Statutes 1998, section 122A.40, 298.7 subdivision 8, is amended to read: 298.8 Subd. 8. [PEER REVIEW FORCONTINUING CONTRACTTEACHERS.] A 298.9 school board and an exclusive representative of the teachers in 298.10 the district shall develop a peer review process for continuing 298.11 contract teachers and probationary teachers through joint 298.12 agreement. 298.13 Sec. 7. Minnesota Statutes 1998, section 122A.40, 298.14 subdivision 10, is amended to read: 298.15 Subd. 10. [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 298.16 school board and the exclusive bargaining representative of the 298.17 teachers may negotiate a plan providing for unrequested leave of 298.18 absence without pay or fringe benefits for as many teachers as 298.19 may be necessary because of discontinuance of position, lack of 298.20 pupils, financial limitations, or merger of classes caused by 298.21 consolidation of districts.Failing to successfully negotiate298.22such a plan, the provisions of subdivision 11 shall apply. The298.23negotiated plan must not include provisions which would result298.24in the exercise of seniority by a teacher holding a provisional298.25license, other than a vocational education license, contrary to298.26the provisions of subdivision 11, clause (c), or the298.27reinstatement of a teacher holding a provisional license, other298.28than a vocational education license, contrary to the provisions298.29of subdivision 11, clause (e).The provisions of section 298.30 179A.16 do not apply for the purposes of this subdivision. 298.31 Sec. 8. Minnesota Statutes 1998, section 122A.40, 298.32 subdivision 19, is amended to read: 298.33 Subd. 19. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 298.34 EXPUNGEMENT.] All evaluations and files generated within a 298.35 school district relating to each individual teacher must be 298.36 available to each individual teacher upon written request. 299.1 Effective January 1, 1976, all evaluations and files, wherever 299.2 generated, relating to each individual teacher must be available 299.3 to each individual teacher upon written request. The teacher 299.4 shall have the right to reproduce any of the contents of the 299.5 filesat the teacher's expenseand to submit for inclusion in 299.6 the file written information in response to any material 299.7 contained therein. 299.8 A district may destroy the files as provided by law and 299.9 must expunge from the teacher's file any material found to be 299.10 false or inaccurate through the grievance procedure required 299.11 pursuant to section 179A.20, subdivision 4. The grievance 299.12 procedure promulgated by the director of the bureau of mediation 299.13 services, pursuant to section 179A.04, subdivision 3, clause 299.14 (h), applies to those principals and supervisory employees not 299.15 included in an appropriate unit as defined in section 179A.03. 299.16 Expungement proceedings must be commenced within the time period 299.17 provided in the collective bargaining agreement for the 299.18 commencement of a grievance. If no time period is provided in 299.19 the bargaining agreement, the expungement proceedings must 299.20 commence within 15 days after the teacher has knowledge of the 299.21 inclusion in the teacher's file of the material the teacher 299.22 seeks to have expunged. 299.23 Sec. 9. Minnesota Statutes 1998, section 122A.41, 299.24 subdivision 15, is amended to read: 299.25 Subd. 15. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 299.26 EXPUNGEMENT.] All evaluations and files generated within a 299.27 district relating to each individual teacher must be available 299.28 to each individual teacher upon the teacher's written request. 299.29 Effective January 1, 1976, all evaluations and files, wherever 299.30 generated, relating to each individual teacher must be available 299.31 to each individual teacher upon the teacher's written request. 299.32 The teacher has the right to reproduce any of the contents of 299.33 the filesat the teacher's expenseand to submit for inclusion 299.34 in the file written information in response to any material 299.35 contained therein. 299.36 A district may destroy the files as provided by law and 300.1 must expunge from the teacher's file any material found to be 300.2 false or substantially inaccurate through the grievance 300.3 procedure required pursuant to section 179A.20, subdivision 4. 300.4 The grievance procedure promulgated by the director of the 300.5 bureau of mediation services, pursuant to section 179A.04, 300.6 subdivision 3, clause (h), applies to those principals and 300.7 supervisory employees not included in an appropriate unit as 300.8 defined in section 179A.03. Expungement proceedings must be 300.9 commenced within the time period provided in the collective 300.10 bargaining agreement for the commencement of a grievance. If no 300.11 time period is provided in the bargaining agreement, the 300.12 expungement proceedings must commence within 15 days after the 300.13 teacher has knowledge of the inclusion in the teacher's file of 300.14 the material the teacher seeks to have expunged. 300.15 Sec. 10. [122A.455] [TEACHER CONTRACTS.] 300.16 The school board and the exclusive bargaining 300.17 representative of the teachers must negotiate, if applicable: 300.18 (1) short-term, limited contracts; 300.19 (2) summer school contracts; 300.20 (3) sabbatical leave; 300.21 (4) faculty and staff exchange programs; and 300.22 (5) temporary assignments. 300.23 After May 17, 1999, no independent school district shall 300.24 enter into a collective bargaining agreement with the exclusive 300.25 bargaining representative of the teachers that does not include 300.26 a plan providing for an unrequested leave of absence for 300.27 teachers. 300.28 Sec. 11. Minnesota Statutes 1998, section 122A.51, is 300.29 amended to read: 300.30 122A.51 [TEACHER LUNCH PERIOD.] 300.31 A teacher must be provided with a duty-free lunch period, 300.32 scheduled according toschool board policy ornegotiated 300.33 agreement. 300.34 Sec. 12. Minnesota Statutes 1998, section 122A.58, 300.35 subdivision 1, is amended to read: 300.36 Subdivision 1. [TERMINATION; HEARING.] Before a district 301.1 terminates the coaching duties of an employee who isrequired to301.2hold a license as an athletic coach from the state board of301.3educationa head varsity coach of an interscholastic sport at 301.4 the secondary school level, the district must notify the 301.5 employee in writing and state its reason for the proposed 301.6 termination. Within 14 days of receiving this notification, the 301.7 employee may request in writing a hearing on the termination 301.8 before the board. If a hearing is requested, the board must 301.9 hold a hearing within 25 days according to the hearing 301.10 procedures specified in section 122A.40, subdivision 14, and the 301.11 termination is final upon the order of the board after the 301.12 hearing. 301.13 Sec. 13. Minnesota Statutes 1998, section 122A.60, 301.14 subdivision 1, is amended to read: 301.15 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 301.16 board must use the revenue authorized in section 122A.61 for 301.17 in-service education for programs under section 120B.22, 301.18subdivision 2,or for staff development plans under this 301.19 section. The board must establish a staff development committee 301.20 to develop the plan, assist site decision-making teams in 301.21 developing a site plan consistent with the goals of the plan, 301.22 and evaluate staff development efforts at the site level. A 301.23 majority of the advisory committee must be teachers representing 301.24 various grade levels, subject areas, and special education. The 301.25 advisory committee must also include nonteaching staff, parents, 301.26 and administrators. Districts must report staff development 301.27results andexpenditures to the commissioner in the form and 301.28 manner determined by the commissioner. The expenditure report 301.29 must include expenditures by the board for district level 301.30 activities and expenditures made by the staff. The report must 301.31 provide a breakdown of expenditures for (1) curriculum 301.32 development and programs, (2) in-service education, workshops, 301.33 and conferences, and (3) the cost of teachers or substitute 301.34 teachers for staff development purposes. Within each of these 301.35 categories, the report must also indicate whether the 301.36 expenditures were incurred at the district level or the school 302.1 site level, and whether the school site expenditures were made 302.2 possible by the grants to school sites that demonstrate 302.3 exemplary use of allocated staff development revenue. These 302.4 expenditures are to be reported using the UFARS system. The 302.5 commissioner shall report the staff development expenditure data 302.6 to the education committees of the legislature by February 15 302.7 each year. 302.8 Sec. 14. Minnesota Statutes 1998, section 122A.68, 302.9 subdivision 1, is amended to read: 302.10 Subdivision 1. [ESTABLISHMENT.] A school district with a 302.11 teaching residency plan approved by the board of teaching may 302.12 hire graduates of approved Minnesota teacher preparation 302.13 programs as teaching residents. A district shall employ each 302.14 resident for one school year. The district and the resident may 302.15 agree to extend the residency for one additional school year. A 302.16 school may employ no more than one teaching resident for every 302.17 eight full-time equivalent licensed teachers.No more than 600302.18eligible teachers may be employed as teacher residents in any302.19one school year.302.20 Sec. 15. Minnesota Statutes 1998, section 122A.68, 302.21 subdivision 7, is amended to read: 302.22 Subd. 7. [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] The 302.23 board of teaching mustdevelopmaintain for teachers of students 302.24 in prekindergarten through grade 12, model teaching residency 302.25 outcomes and assessments, and mentoring programs. 302.26 Sec. 16. Minnesota Statutes 1998, section 122A.69, is 302.27 amended to read: 302.28 122A.69 [PRACTICE ORSTUDENT TEACHERS.] 302.29 The board may, by agreements with teacher preparing 302.30 institutions, arrange for classroom experience in the district 302.31 forpractice orstudent teachers who have completed not less 302.32 than two years of an approved teacher education program.Such302.33practiceStudent teachers must be provided with appropriate 302.34 supervision by a fully qualified teacher under rules promulgated 302.35 by the board.PracticeStudent teachers are deemed employees of 302.36 the school district in which they are rendering services for 303.1 purposes of workers' compensation; liability insurance, if 303.2 provided for other district employees in accordance with section 303.3 123B.23; and legal counsel in accordance with the provisions of 303.4 section 123B.25. 303.5 Sec. 17. Minnesota Statutes 1998, section 122A.70, 303.6 subdivision 2, is amended to read: 303.7 Subd. 2. [APPLICATIONS.] The board of teaching must make 303.8 application forms available to sites interested in developing or 303.9 expanding a mentorship program. A school district, a group of 303.10 school districts, or a coalition of districts, teachers and 303.11 teacher education institutions may apply for a teacher 303.12 mentorship program grant. The board of teaching, in303.13consultation with the teacher mentoring task force,must approve 303.14 or disapprove the applications. To the extent possible, the 303.15 approved applications must reflect effective mentoring 303.16 components, include a variety of coalitions and be 303.17 geographically distributed throughout the state. The board of 303.18 teaching must encourage the selected sites to consider the use 303.19 of its assessment procedures. 303.20 Sec. 18. Minnesota Statutes 1998, section 122A.91, is 303.21 amended to read: 303.22 122A.91 [DESIGNATED STATE OFFICIAL.] 303.23 For the purposes of the agreement set forth in section 303.24 122A.90, the designated state official for this state is the 303.25commissioner of children, families, and learningexecutive 303.26 secretary of the board of teaching. 303.27 Sec. 19. Minnesota Statutes 1998, section 122A.92, is 303.28 amended to read: 303.29 122A.92 [RECORD OF CONTRACTS.] 303.30 Two copies of all contracts made on behalf of this state 303.31 pursuant to the agreement set forth in section 122A.90 must be 303.32 kept on file in the office of thecommissioner of children,303.33families, and learningboard of teaching. 303.34 Sec. 20. [REVISOR INSTRUCTION.] 303.35 In the next and subsequent editions of Minnesota Statutes 303.36 and Minnesota Rules, the revisor of statutes shall renumber 304.1 Minnesota Statutes, section 122A.61, subdivision 2, as Minnesota 304.2 Statutes, section 124D.311. The revisor shall also make 304.3 necessary cross-reference changes consistent with the 304.4 renumbering. 304.5 Sec. 21. [REPEALER.] 304.6 Minnesota Statutes 1998, sections 122A.162; 122A.19, 304.7 subdivision 2; 122A.32; 122A.33; 122A.40, subdivision 6; 304.8 122A.42; 122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 304.9 122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 122A.57; 304.10 122A.71; 122A.72; and 122A.75, are repealed. 304.11 ARTICLE 14 304.12 SCHOOL DISTRICTS; FORMS FOR ORGANIZING 304.13 Section 1. [REPEALER.] 304.14 Minnesota Statutes 1998, sections 123A.06, subdivision 3; 304.15 123A.07; and 123A.15, subdivision 1, are repealed. 304.16 ARTICLE 15 304.17 SCHOOL DISTRICT POWERS AND DUTIES 304.18 Section 1. Minnesota Statutes 1998, section 123B.02, 304.19 subdivision 1, is amended to read: 304.20 Subdivision 1. [BOARD AUTHORITY.] The board must have the 304.21 general charge of the business of the district, the school 304.22 houses, and of the interests of the schools thereof. The 304.23 board's authority to govern, manage, and control the district, 304.24 to carry out its duties and responsibilities, and to conduct the 304.25 business of the district includes implied powers in addition to 304.26 any specific powers granted by the legislature. 304.27 Sec. 2. Minnesota Statutes 1998, section 123B.02, 304.28 subdivision 2, is amended to read: 304.29 Subd. 2. [FACILITIES FOR SCHOOL-AGE CHILDREN.] It is the 304.30 duty and the function of the district to furnish school 304.31 facilities to every child of school age residing in any part of 304.32 the district. The board may establish and organize and alter 304.33 and discontinue such grades or schools as it may deem advisable 304.34 and assign to each school and grade a proper number of pupils. 304.35The board shall provide free textbooks for the pupils of the304.36district.305.1 Sec. 3. Minnesota Statutes 1998, section 123B.02, 305.2 subdivision 3, is amended to read: 305.3 Subd. 3. [LIMITATION ON PARTICIPATION AND FINANCIAL 305.4 SUPPORT.] (a) A district must not be required by any type of 305.5 formal or informal agreement except an agreement to provide 305.6 building space according to paragraph (f), including a joint 305.7 powers agreement, or membership in any cooperative unit defined 305.8 in section 123A.24, subdivision 2, to participate in or provide 305.9 financial support for the purposes of the agreement for a time 305.10 period in excess of four fiscal years, or the time period set 305.11 forth in this subdivision. Any agreement, part of an agreement, 305.12 or other type of requirement to the contrary is void. 305.13 (b) This subdivision shall not affect the continued 305.14 liability of a district for its share of bonded indebtedness or 305.15 other debt incurred as a result of any agreement before July 1, 305.16 1993. The district is liable only until the obligation or debt 305.17 is discharged and only according to the payment schedule in 305.18 effect on July 1, 1993, except that the payment schedule may be 305.19 altered for the purpose of restructuring debt or refunding bonds 305.20 outstanding on July 1, 1993, if the annual payments of the 305.21 district are not increased and if the total obligation of the 305.22 school district for its share of outstanding bonds or other debt 305.23 is not increased. 305.24 (c) To cease participating in or providing financial 305.25 support for any of the services or activities relating to the 305.26 agreement or to terminate participation in the agreement, the 305.27 board must adopt a resolution and notify other parties to the 305.28 agreement of its decision on or before February 1 of any year. 305.29 The cessation or withdrawal shall be effective June 30 of the 305.30 same year except that for a member of an education district 305.31 organized under sections 123A.15 to 123A.19 or an intermediate 305.32 district organized under chapter 136D, cessation or withdrawal 305.33 shall be effective June 30 of the following fiscal year. At the 305.34 option of the board, cessation or withdrawal may be effective 305.35 June 30 of the following fiscal year for a district 305.36 participating in any type of agreement. 306.1 (d) Before issuing bonds or incurring other debt, the 306.2 governing body responsible for implementing the agreement must 306.3 adopt a resolution proposing to issue bonds or incur other debt 306.4 and the proposed financial effect of the bonds or other debt 306.5 upon each participating district. The resolution must be 306.6 adopted within a time sufficient to allow the board to adopt a 306.7 resolution within the time permitted by this paragraph and to 306.8 comply with the statutory deadlines set forth in sections 306.9 122A.40, 122A.41, and 123A.33. The governing body responsible 306.10 for implementing the agreement shall notify each participating 306.11 board of the contents of the resolution. Within 120 days of 306.12 receiving the resolution of the governing body, the school board 306.13 of the participating district shall adopt a resolution stating: 306.14 (1) its concurrence with issuing bonds or incurring other 306.15 debt; 306.16 (2) its intention to cease participating in or providing 306.17 financial support for the service or activity related to the 306.18 bonds or other debt; or 306.19 (3) its intention to terminate participation in the 306.20 agreement. 306.21 A board adopting a resolution according to clause (1) is 306.22 liable for its share of bonded indebtedness or other debt as 306.23 proposed by the governing body implementing the agreement. A 306.24 school board adopting a resolution according to clause (2) is 306.25 not liable for the bonded indebtedness or other debt, as 306.26 proposed by the governing body, related to the services or 306.27 activities in which the district ceases participating or 306.28 providing financial support. A board adopting a resolution 306.29 according to clause (3) is not liable for the bonded 306.30 indebtedness or other debt proposed by the governing body 306.31 implementing the agreement. 306.32 (e)After July 1, 1993,A district is liable according to 306.33 paragraph (d) for its share of bonded indebtedness or other debt 306.34 incurred by the governing body implementing the agreement to the 306.35 extent that the bonds or other debt are directly related to the 306.36 services or activities in which the district participates or for 307.1 which the district provides financial support. The district has 307.2 continued liability only until the obligation or debt is 307.3 discharged and only according to the payment schedule in effect 307.4 at the time the governing body implementing the agreement 307.5 provides notice to the school board, except that the payment 307.6 schedule may be altered for the purpose of refunding the 307.7 outstanding bonds or restructuring other debt if the annual 307.8 payments of the district are not increased and if the total 307.9 obligation of the district for the outstanding bonds or other 307.10 debt is not increased. 307.11 (f) A district that is a member of a cooperative unit as 307.12 defined in section 123A.24, subdivision 2, may obligate itself 307.13 to participate in and provide financial support for an agreement 307.14 with a cooperative unit to provide school building space for a 307.15 term not to exceed two years with an option on the part of the 307.16 district to renew for an additional two years. 307.17 (g) Notwithstanding any limitations imposed under this 307.18 subdivision, a school district may, according to section 307.19 123B.51, subdivision 4, enter into a lease of all or a portion 307.20 of a schoolhouse that is not needed for school purposes, 307.21 including, but not limited to, a lease with a term of more than 307.22 one year. 307.23 Sec. 4. Minnesota Statutes 1998, section 123B.04, 307.24 subdivision 2, is amended to read: 307.25 Subd. 2. [AGREEMENT.] (a) Either the school board or 307.26 theschoolsite decision-making team may request that the school 307.27 board enter into an agreement with aschoolsite decision-making 307.28 team concerning the governance, management, or control of the 307.29 school.A school site decision-making team may include the307.30school principal, teachers in the school or their designee,307.31other employees in the school, parents of pupils in the school,307.32representatives of pupils in the school, or other members in the307.33community. The school site decision-making team shall include307.34the school principal or other person having general control and307.35supervision of the school.A school district must provide 307.36 notice to parents about site decision-making teams and inform 308.1 parents about how to be involved with the site decision-making 308.2 team. The site decision-making team must reflect the diversity 308.3 of the student body of the education site. No more than 308.4 one-half of the members shall be employees of the district. 308.5 (b) School site decision-making agreements must delegate 308.6 powers, duties, and broad management responsibilities to site 308.7 teams and involve staff members, students as appropriate, and 308.8 parents in decision making. 308.9(c) An agreement shall include a statement of powers,308.10duties, responsibilities, and authority to be delegated to and308.11within the site.308.12(d) An agreement may include:308.13(1) an achievement contract according to subdivision 4;308.14(2) a mechanism to allow principals, or other persons308.15having general control and supervision of the school, to make308.16decisions regarding how financial and personnel resources are308.17best allocated at the site and from whom goods or services are308.18purchased;308.19(3) a mechanism to implement parental involvement programs308.20under section 124D.895 and to provide for effective parental308.21communication and feedback on this involvement at the site308.22level;308.23(4) a provision that would allow the team to determine who308.24is hired into licensed and nonlicensed positions;308.25(5) a provision that would allow teachers to choose the308.26principal or other person having general control;308.27(6) an amount of revenue allocated to the site under308.28subdivision 3; and308.29(7) any other powers and duties determined appropriate by308.30the board.308.31The school board of the district remains the legal employer308.32under clauses (4) and (5).308.33(e) Any powers or duties not delegated to the school site308.34management team in the school site management agreement shall308.35remain with the school board.308.36(f) Approved agreements shall be filed with the309.1commissioner. If a school board denies a request to enter into309.2a school site management agreement, it shall provide a copy of309.3the request and the reasons for its denial to the commissioner.309.4 Sec. 5. Minnesota Statutes 1998, section 123B.04, 309.5 subdivision 5, is amended to read: 309.6 Subd. 5. [COMMISSIONER'S ROLE.] The commissioner of 309.7 children, families, and learning, in consultation with 309.8 appropriate educational organizations, shall:, 309.9(1)upon request, provide technical support for districts 309.10 and sites with agreements under this section;309.11(2) conduct and compile research on the effectiveness of309.12site decision making; and309.13(3) periodically report on and evaluate the effectiveness309.14of site management agreements on a statewide basis. 309.15 Sec. 6. Minnesota Statutes 1998, section 123B.09, 309.16 subdivision 8, is amended to read: 309.17 Subd. 8. [DUTIES.] The board must superintend and manage 309.18 the schools of the district; adopt rules for their organization, 309.19 government, and instruction; keep registers; and prescribe 309.20 textbooks and courses of study.The board may enter into an309.21agreement with a post-secondary institution for secondary or309.22post-secondary nonsectarian courses to be taught at a secondary309.23school, nonsectarian post-secondary institution, or another309.24location.309.25 Sec. 7. Minnesota Statutes 1998, section 123B.143, 309.26 subdivision 1, is amended to read: 309.27 Subdivision 1. [CONTRACT; DUTIES.] All districts 309.28 maintaining a classified secondary school must employ a 309.29 superintendent who shall be an ex officio nonvoting member of 309.30 the school board. The authority for selection and employment of 309.31 a superintendent must be vested in the board in all cases. An 309.32 individual employed by a board as a superintendent shall have an 309.33 initial employment contract for a period of time no longer than 309.34 three years from the date of employment. Any subsequent 309.35 employment contract must not exceed a period of three years. A 309.36 board, at its discretion, may or may not renew an employment 310.1 contract. A board must not, by action or inaction, extend the 310.2 duration of an existing employment contract. Beginning 365 days 310.3 prior to the expiration date of an existing employment contract, 310.4 a board may negotiate and enter into a subsequent employment 310.5 contract to take effect upon the expiration of the existing 310.6 contract. A subsequent contract must be contingent upon the 310.7 employee completing the terms of an existing contract. If a 310.8 contract between a board and a superintendent is terminated 310.9 prior to the date specified in the contract, the board may not 310.10 enter into another superintendent contract with that same 310.11 individual that has a term that extends beyond the date 310.12 specified in the terminated contract. A board may terminate a 310.13 superintendent during the term of an employment contract for any 310.14 of the grounds specified in section 122A.40, subdivision 9 or 13. 310.15 A superintendent shall not rely upon an employment contract with 310.16 a board to assert any other continuing contract rights in the 310.17 position of superintendent under section 122A.40. 310.18 Notwithstanding the provisions of sections 122A.40, subdivision 310.19 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 310.20 individual shall have a right to employment as a superintendent 310.21 based on order of employment in any district. If two or more 310.22 districts enter into an agreement for the purchase or sharing of 310.23 the services of a superintendent, the contracting districts have 310.24 the absolute right to select one of the individuals employed to 310.25 serve as superintendent in one of the contracting districts and 310.26 no individual has a right to employment as the superintendent to 310.27 provide all or part of the services based on order of employment 310.28 in a contracting district. The superintendent of a district 310.29 shall perform the following: 310.30 (1)visit and supervise the schools in the district, report310.31and make recommendations about their condition when advisable or310.32on request by the board;310.33(2) recommend to the board employment and dismissal of310.34teachers;310.35(3) superintend school grading practices and examinations310.36for promotions;311.1(4)make reports required by the commissioner; 311.2(5)(2) by January 10, submit an annual report to the 311.3 commissioner in a manner prescribed by the commissioner, in 311.4 consultation with school districts, identifying the expenditures 311.5 that the district requires to ensure an 80 percent and a 90 311.6 percent student passage rate on the basic standards test taken 311.7 in the eighth grade, identifying the amount of expenditures that 311.8 the district requires to ensure a 99 percent student passage 311.9 rate on the basic standards test by 12th grade, and how much the 311.10 district is cross-subsidizing programs with special education, 311.11 compensatory, and general education revenue; and 311.12(6)(3) perform other duties prescribed by the board. 311.13 Sec. 8. Minnesota Statutes 1998, section 123B.36, 311.14 subdivision 1, is amended to read: 311.15 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] A school 311.16 board is authorized to require payment of fees in the following 311.17 areas: 311.18 (1) in any program where the resultant product, in excess 311.19 of minimum requirements and at the pupil's option, becomes the 311.20 personal property of the pupil; 311.21 (2) admission fees or charges for extra curricular 311.22 activities, where attendance is optional and where the admission 311.23 fees or charges a student must pay to attend or participate in 311.24 an extracurricular activity is the same for all students, 311.25 regardless of whether the student is enrolled in a public or a 311.26 home school; 311.27 (3) a security deposit for the return of materials, 311.28 supplies, or equipment; 311.29 (4) personal physical education and athletic equipment and 311.30 apparel, although any pupil may personally provide it if it 311.31 meets reasonable requirements and standards relating to health 311.32 and safety established by the board; 311.33 (5) items of personal use or products that a student has an 311.34 option to purchase such as student publications, class rings, 311.35 annuals, and graduation announcements; 311.36 (6) fees specifically permitted by any other statute, 312.1 including but not limited to section 171.05, subdivision 2; 312.2 provided (i) driver education fees do not exceed the actual cost 312.3 to the school and school district of providing driver education, 312.4 and (ii) the driver education courses are open to enrollment to 312.5 persons between the ages of 15 and 18 who reside or attend 312.6 school in the school district; 312.7 (7) field trips considered supplementary to a district 312.8 educational program; 312.9 (8) any authorized voluntary student health and accident 312.10 benefit plan; 312.11 (9) for the use of musical instruments owned or rented by 312.12 the district, a reasonable rental fee not to exceed either the 312.13 rental cost to the district or the annual depreciation plus the 312.14 actual annual maintenance cost for each instrument; 312.15 (10) transportation of pupils to and from extra curricular 312.16 activities conducted at locations other than school, where 312.17 attendance is optional; 312.18 (11) transportation of pupils to and from school for which 312.19 aid for fiscal year 1996 is not authorized under Minnesota 312.20 Statutes 1994, section 124.223, subdivision 1, and for which 312.21 levy for fiscal year 1996 is not authorized under Minnesota 312.22 Statutes 1994, section 124.226, subdivision 5, if a district 312.23 charging fees for transportation of pupils establishes 312.24 guidelines for that transportation to ensure that no pupil is 312.25 denied transportation solely because of inability to pay; 312.26 (12)motorcyclevehicle safety classroom education courses 312.27 conducted outside of regular school hours; provided the charge 312.28 must not exceed the actual cost of these courses to the school 312.29 district; 312.30 (13) transportation to and from post-secondary institutions 312.31 for pupils enrolled under the post-secondary enrollment options 312.32 program under section 123B.88, subdivision 22. Fees collected 312.33 for this service must be reasonable and must be used to reduce 312.34 the cost of operating the route. Families who qualify for 312.35 mileage reimbursement under section 124D.09, subdivision 22, may 312.36 use their state mileage reimbursement to pay this fee. If no 313.1 fee is charged, districts must allocate costs based on the 313.2 number of pupils riding the route; and 313.3 (14) admission fees or charges to a part-time student who 313.4 is over the age of 21 or who has graduated from high school for 313.5 attending a class or a program at a secondary school. 313.6 Sec. 9. Minnesota Statutes 1998, section 123B.43, is 313.7 amended to read: 313.8 123B.43 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 313.9 (a) The commissioner shall assure that textbooks and 313.10 individualized instructional materials loaned to nonpublic 313.11 school pupils are secular, neutral, nonideological and that they 313.12 are incapable of diversion for religious use. 313.13 (b) Textbooks and individualized instructional materials 313.14 must not be used in religious courses, devotional exercises, 313.15 religious training or any other religious activity. 313.16 (c) Textbooks and individualized instructional materials 313.17 must be loaned only to individual pupils upon the request of a 313.18 parent or guardian or the pupil on a form designated for this 313.19 use by the commissioner. The request forms shall provide for 313.20 verification by the parent or guardian or pupil that the 313.21 requested textbooks and individualized instructional materials 313.22 are for the use of the individual pupil in connection with a 313.23 program of instruction in the pupil's elementary or secondary 313.24 school. 313.25(d) The servicing school district or the intermediary313.26service area must take adequate measures to ensure an accurate313.27and periodic inventory of all textbooks and individualized313.28instructional materials loaned to elementary and secondary313.29school pupils attending nonpublic schools. The state board of313.30education shall promulgate rules under the provisions of chapter313.3114 to terminate the eligibility of any nonpublic school pupil if313.32the commissioner determines, after notice and opportunity for313.33hearing, that the textbooks or individualized instructional313.34materials have been used in a manner contrary to the provisions313.35of section 123B.41, subdivision 5, 123B.42, or this section or313.36any rules promulgated by the state board of education.314.1(e) Nothing contained in section 123B.41, subdivision 5,314.2123B.42, or this section shall be construed to authorize the314.3making of any payments to a nonpublic school or its faculty,314.4staff or administrators for religious worship or instruction or314.5for any other purpose.314.6 Sec. 10. Minnesota Statutes 1998, section 123B.445, is 314.7 amended to read: 314.8 123B.445 [NONPUBLIC EDUCATION COUNCIL.] 314.9 (a) The commissioner shall appoint a 15-member council on 314.10 nonpublic education, with the advice and consent of the senate. 314.11 The 15 members shall represent various areas of the state, 314.12 represent various methods of providing nonpublic education, and 314.13 shall be knowledgeable about nonpublic education. The 314.14 compensation, removal of members, filling of vacancies, and 314.15 terms are governed by section 15.0575. The council shall not 314.16 expire. Thecouncillcouncil shall advise the commissioner and 314.17 the state board on issues affecting nonpublic education and 314.18 nonpublic schools. The council may recognize educational 314.19 accrediting agencies, for the sole purpose of sections 120A.22, 314.20 120A.24, and 120A.26. 314.21 (b) A parent or guardian of a nonpublic school pupil or a 314.22 nonpublic school may file a complaint about services provided 314.23 under sections 123B.40 to 123B.42, and 123B.44 to 123B.48 with 314.24 the nonpublic education council. The council may review the 314.25 complaint and make a recommendation for resolution to the 314.26 commissioner. 314.27 Sec. 11. Minnesota Statutes 1998, section 123B.49, 314.28 subdivision 1, is amended to read: 314.29 Subdivision 1. [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 314.30Whenever it appears to be beneficial and for the best interest314.31of the district and the pupils of the district to carry on any314.32school sport activities or educational activities connected with314.33their studies outside of the territorial limits of the district,314.34 The board may authorizesuchactivitiesto beconducted outside 314.35 of the territorial limits of the district under such rules and 314.36 regulations as the board deems sufficient. The district may pay 315.1 all necessary costs therefor including transportation from the 315.2 district funds available. 315.3 Sec. 12. Minnesota Statutes 1998, section 123B.49, 315.4 subdivision 4, is amended to read: 315.5 Subd. 4. [BOARDCONTROLAUTHORIZATION OF EXTRACURRICULAR 315.6 ACTIVITIES.] (a) The board maytake charge of and control315.7 authorize all extracurricular activities of the teachers and 315.8 children of the public schools in the district. Extracurricular 315.9 activities means all direct and personal services for public 315.10 school pupils for their enjoyment that are managed and operated 315.11 under the guidance of an adult or staff member. 315.12 (b) Extracurricular activities have all of the following 315.13 characteristics: 315.14 (1) they are not offered for school credit nor required for 315.15 graduation; 315.16 (2) they are generally conducted outside school hours, or 315.17 if partly during school hours, at times agreed by the 315.18 participants, and approved by school authorities; 315.19 (3) the content of the activities is determined primarily 315.20 by the pupil participants under the guidance of a staff member 315.21 or other adult. 315.22 (c) If the board does nottake charge of and control315.23 authorize extracurricular activities, these activities shall be 315.24 self-sustaining with all expenses, except direct salary costs 315.25 and indirect costs of the use of school facilities, met by dues, 315.26 admissions, or other student fundraising events. The general 315.27 fund must reflect only those salaries directly related to and 315.28 readily identified with the activity and paid by public funds. 315.29 Other revenues and expenditures for extra curricular activities 315.30 must be recorded according to the "Manual of Instruction for 315.31 Uniform Student Activities Accounting for Minnesota School 315.32 Districts and Area Vocational-Technical Colleges." 315.33 Extracurricular activities not under board control must have an 315.34 annual financial audit and must also be audited annually for 315.35 compliance with this section. 315.36 (d) If the boardtakes charge of and controlsauthorizes 316.1 extracurricular activities, any or all costs of these activities 316.2 may be provided from school revenues and all revenues and 316.3 expenditures for these activities shall be recorded in the same 316.4 manner as other revenues and expenditures of the district. 316.5 (e) If the boardtakes charge of and controlsauthorizes 316.6 extracurricular activities, the teachers or pupils in the 316.7 district must not participate in such activity, nor shall the 316.8 school name or any allied name be used in connection therewith, 316.9 except by consent and direction of the board. 316.10 Sec. 13. Minnesota Statutes 1998, section 123B.51, 316.11 subdivision 1, is amended to read: 316.12 Subdivision 1. [SITES.] According to section 126C.40, 316.13 subdivision 1, or 465.71, when funds are available, the board 316.14 may locate and acquire necessary sites ofschoolhousesschools 316.15 or enlargements, or additions to existingschoolhouse sites316.16 schools by lease, purchase or condemnation under the right of 316.17 eminent domain; it may erectschoolhousesschools on the sites; 316.18 it may erect or purchase garages for district-owned school 316.19 buses. When property is taken by eminent domain by authority of 316.20 this subdivision when needed by the district for such purposes, 316.21 the fact that the property has been acquired by the owner under 316.22 the power of eminent domain or is already devoted to public use, 316.23 shall not prevent its acquisition by the district. The board 316.24 may sell or exchangeschoolhousesschools or sites, and execute 316.25 deeds of conveyance thereof. 316.26 Sec. 14. Minnesota Statutes 1998, section 123B.51, 316.27 subdivision 5, is amended to read: 316.28 Subd. 5. [SCHOOLHOUSESCHOOL CLOSING.] The board may close 316.29 aschoolhouseschool only after a public hearing on the question 316.30 of the necessity and practicability of the proposed closing. 316.31 Published notice of the hearing shall be given for two weeks in 316.32 the official newspaper of the district. The time and place of 316.33 the meeting, the description and location of theschoolhouse316.34 school, and a statement of the reasons for the closing must be 316.35 specified in the notice. Parties requesting to give testimony 316.36 for and against the proposal shall be heard by the board before 317.1 it makes a final decision to close or not to close 317.2 theschoolhouseschool. 317.3 Sec. 15. Minnesota Statutes 1998, section 123B.73, 317.4 subdivision 1, is amended to read: 317.5 Subdivision 1. [INSPECTION.] The commissionerand the317.6state fire marshal shall develop a plan to inspect once every317.7three years every public school facility used for educational317.8purposesshall contract with the fire marshal to conduct fire 317.9 safety inspections of all school buildings. Each school 317.10 facility shall be inspected once every three years or more 317.11 frequently at the request of the school district or the 317.12 commissioner.Inspections must begin during the 1990-1991317.13school year. The plan must provide for continued inspection by317.14local units of government of public school facilities that have317.15been inspected by a local unit of government between January 1,317.161987, and January 1, 1990, and may provide for inspections by317.17local units of government in other situations. Each inspection317.18report must be filed with the commissioner, the local school317.19board, and the state fire marshal. Notwithstanding section317.20299F.011, subdivisions 5a and 5b, a variance from the code must317.21be approved by the state fire marshal before taking effect. The317.22state board may request that the state fire marshal inspect a317.23particular school facility.317.24 Sec. 16. Minnesota Statutes 1998, section 123B.83, 317.25 subdivision 1, is amended to read: 317.26 Subdivision 1. [REDUCE STATUTORY OPERATING DEBT.] (a) 317.27Beginning in fiscal year 1978 and in each year thereafter,A 317.28 district which had statutory operating debt on June 30, 1977 317.29 pursuant to section 126C.42 must limit its expenditures in each 317.30 fiscal year so that the amount of its statutory operating debt 317.31 calculated at the end of that fiscal year is not greater than 317.32 the amount of the district's statutory operating debt as of June 317.33 30, 1977, as certified and adjusted by the commissioner, 317.34 increased by an amount equal to 2-1/2 percent of that district's 317.35 operating expenditures for the fiscal year for which the 317.36 statutory operating debt calculation is being made. 318.1 (b) When a district is no longer required to levy pursuant 318.2 to section 126C.42, subdivision 1, subdivision 2 is applicable. 318.3 Sec. 17. Minnesota Statutes 1998, section 123B.90, 318.4 subdivision 1, is amended to read: 318.5 Subdivision 1. [SCHOOL BUS SAFETY WEEK.] The third week of 318.6 school is designated as school bus safety week. 318.7A school board may designate one day of school bus safety318.8week as school bus driver day.318.9 Sec. 18. Minnesota Statutes 1998, section 123B.90, 318.10 subdivision 2, is amended to read: 318.11 Subd. 2. [STUDENT TRAINING.] (a) Each district must 318.12 provide public school pupils enrolled in grades kindergarten 318.13 through 10 with age-appropriate school bus safety training. The 318.14 training must be results-oriented and shall consist of both 318.15 classroom instruction and practical training using a school 318.16 bus. Upon completing the training, a student shall be able to 318.17 demonstrate knowledge and understanding of at least the 318.18 following competencies and concepts: 318.19 (1) transportation by school bus is a privilege and not a 318.20 right; 318.21 (2) district policies for student conduct and school bus 318.22 safety; 318.23 (3) appropriate conduct while on the school bus; 318.24 (4) the danger zones surrounding a school bus; 318.25 (5) procedures for safely boarding and leaving a school 318.26 bus; 318.27 (6) procedures for safe street or road crossing; and 318.28 (7) school bus evacuation and other emergency procedures. 318.29 (b) Each nonpublic school located within the district must 318.30 provide all nonpublic school pupils enrolled in grades 318.31 kindergarten through 10 who are transported by school bus at 318.32 public expense and attend school within the district's 318.33 boundaries with training as required in paragraph (a). The 318.34 school district shall make a bus available for the practical 318.35 training if the district transports the nonpublic students. 318.36 Each nonpublic school shall provide the instruction. 319.1 (c)All students enrolled in grades kindergarten through 3319.2who are transported by school bus and are enrolled during the319.3first or second week of school must demonstrate achievement of319.4the school bus safety training competencies by the end of the319.5third week of school. All students enrolled in grades 4 through319.610 who are transported by school bus and are enrolled during the319.7first or second week of school must demonstrate achievement of319.8the competencies by the end of the sixth week of school.319.9Students enrolled in grades kindergarten through 10 who enroll319.10in a school after the second week of school and are transported319.11by school bus shall undergo school bus safety training and319.12demonstrate achievement of the school bus safety competencies319.13within four weeks of the first day of attendance. The pupil319.14transportation safety director in each district must certify to319.15the commissioner annually that all students transported by319.16school bus within the district have satisfactorily demonstrated319.17knowledge and understanding of the school bus safety319.18competencies according to this section or provide an explanation319.19for a student's failure to demonstrate the competencies. The319.20principal or other chief administrator of each nonpublic school319.21must certify annually to the public transportation safety319.22director of the district in which the school is located that all319.23of the school's students transported by school bus at public319.24expense have received training. A district may deny319.25transportation to a student who fails to demonstrate the319.26competencies, unless the student is unable to achieve the319.27competencies due to a disability, or to a student who attends a319.28nonpublic school that fails to provide training as required by319.29this subdivision.319.30(d) A district and a nonpublic school with students319.31transported by school bus at public expense must, to the extent319.32possible, provide kindergarten pupils with bus safety training319.33before the first day of school.319.34(e)A district and a nonpublic school with students 319.35 transported by school bus at public expense must also provide 319.36 student safety education for bicycling and pedestrian safety, 320.1 for students enrolled in grades kindergarten through 5. 320.2(f)(d) A district and a nonpublic school with students 320.3 transported by school bus at public expense must make reasonable 320.4 accommodations for the school bus, bicycle, and pedestrian 320.5 safety training of pupils known to speak English as a second 320.6 language and pupils with disabilities. 320.7 Sec. 19. Minnesota Statutes 1998, section 123B.91, 320.8 subdivision 1, is amended to read: 320.9 Subdivision 1. [COMPREHENSIVE POLICY.] Each district must 320.10 develop and implement a comprehensive, written policy governing 320.11 pupil transportation safety, including transportation of 320.12 nonpublic school students, when applicable. The policy shall, 320.13 at minimum, contain: 320.14 (1) provisions for appropriate student bus safety training 320.15 under section 123B.90; 320.16 (2) rules governing student conduct on school buses and in 320.17 school bus loading and unloading areas; 320.18 (3) a statement of parent or guardian responsibilities 320.19 relating to school bus safety; 320.20 (4) provisions for notifying students and parents or 320.21 guardians of their responsibilities and the rules; 320.22 (5) an intradistrict system for reporting school bus 320.23 accidents or misconduct and a system for dealing with local law 320.24 enforcement officials in cases of criminal conduct on a school 320.25 bus; 320.26 (6) a discipline policy to address violations of school bus 320.27 safety rules, including procedures for revoking a student's bus 320.28 riding privileges in cases of serious or repeated misconduct; 320.29 (7) a system for integrating school bus misconduct records 320.30 with other discipline records; 320.31 (8) a statement of bus driver duties; 320.32 (9) planned expenditures for safety activities under 320.33 section 123B.89 and, where applicable, provisions governing bus 320.34 monitor qualifications, training, and duties; 320.35 (10) rules governing the use and maintenance of type III 320.36 vehicles, drivers of type III vehicles, qualifications to drive 321.1 a type III vehicle, qualifications for a type III vehicle and 321.2 the circumstances under which a student may be transported in a 321.3 type III vehicle; 321.4 (11) operating rules and procedures; 321.5 (12) provisions for annual bus driver in-service training 321.6 and evaluation; 321.7 (13) emergency procedures; 321.8 (14) a system for maintaining and inspecting equipment; 321.9 (15) requirements of the school district, if any, that 321.10 exceed state law minimum requirements for school bus operations; 321.11 and 321.12 (16) requirements for basic first aid training, which must 321.13 include the Heimlich maneuver and procedures for dealing with 321.14 obstructed airways, shock, bleeding, and seizures. 321.15Districts are encouraged to use the model policy developed321.16by the Minnesota school boards association, the department of321.17public safety, and the department of children, families, and321.18learning, as well as the current edition of the "National321.19Standards for School Buses and Operations" published by the321.20National Safety Council, in developing safety policies.Each 321.21 district shall review its policy annually and make appropriate 321.22 amendments, which must be submitted to the school bus safety 321.23 advisory committee within one month of approval by the school 321.24 board. 321.25 Sec. 20. Minnesota Statutes 1998, section 123B.92, 321.26 subdivision 2, is amended to read: 321.27 Subd. 2. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 321.28 districtmustmay reserve an amountequal to the greater of $500321.29or $1.50 times the number of adjusted pupil units,for that 321.30 school year to provide student transportation safety programs 321.31 under section 123B.89.This revenue may only be used if the321.32district complies with the reporting requirements of section321.33123B.90, 123B.91, 169.4582, or 171.321, subdivision 5.321.34 Sec. 21. Minnesota Statutes 1998, section 123B.92, 321.35 subdivision 4, is amended to read: 321.36 Subd. 4. [TRANSPORTATION SAFETY AID.] A district's 322.1 transportation safety aid equals the district's reserved revenue 322.2 for transportation safety under subdivision 2 for that school 322.3 year.Failure of a district to comply with the reporting322.4requirements of section 123B.90, 123B.91, 169.4582, or 171.321,322.5subdivision 5, may result in a withholding of that district's322.6transportation safety aid for that school year.322.7 Sec. 22. [REPEALER.] 322.8 Minnesota Statutes 1998, sections 123B.02, subdivisions 5, 322.9 6, 9, 10, 11, 13, and 16; 123B.04, subdivision 4; 123B.11; 322.10 123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 123B.17; 322.11 123B.18; 123B.19; 123B.40; 123B.49, subdivisions 2 and 3; 322.12 123B.51, subdivisions 2, 3, and 4; 123B.744; 123B.84; 123B.87; 322.13 123B.88, subdivisions 11, 12, 13, 18, 20, 21, and 22; 123B.93; 322.14 and 123B.95, subdivision 3, are repealed. 322.15 ARTICLE 16 322.16 EDUCATION PROGRAMS 322.17 Section 1. Minnesota Statutes 1998, section 124D.02, 322.18 subdivision 1, is amended to read: 322.19 Subdivision 1. [KINDERGARTEN INSTRUCTION.] The boardmay322.20establish and maintain one or more kindergartens for the322.21instruction of children and after July 1, 1974, shall provide322.22 must make kindergarten instruction available for all eligible 322.23 children, either in the district or in another district.All322.24children to be eligibleEligibility for kindergarten must beat322.25least five years of age on September 1 of the calendar year in322.26which the school year commences. In addition all children322.27selected under an early admissions policy established by the322.28school board may be admitted. Nothing in this section shall322.29prohibit a school district from establishing head start,322.30prekindergarten, or nursery school classes for children below322.31kindergarten agedetermined according to section 120A.20, 322.32 subdivision 1. Any school board with evidence that providing 322.33 kindergarten will cause an extraordinary hardship on the school 322.34 district may apply to the commissioner of children, families, 322.35 and learning for an exception. 322.36 Sec. 2. Minnesota Statutes 1998, section 124D.03, 323.1 subdivision 3, is amended to read: 323.2 Subd. 3. [PUPIL APPLICATION PROCEDURES.] In order that a 323.3 pupil may attend a school or program in a nonresident district, 323.4 the pupil's parent or guardian must submit an application to the 323.5 nonresident district.Before submitting an application, the323.6pupil and the pupil's parent or guardian must explore with a323.7school guidance counselor, or other appropriate staff member323.8employed by the district the pupil is currently attending, the323.9pupil's academic or other reason for applying to enroll in a323.10nonresident district. The pupil's application must identify the323.11reason for enrolling in the nonresident district.The parent or 323.12 guardian of a pupil must submit an application byJanuary323.1315June 1 for initial enrollment beginning the following school 323.14 year. The application must be on a form provided by the 323.15 department of children, families, and learning. A particular 323.16 school or program may be requested by the parent. Once enrolled 323.17 in a nonresident district, the pupil may remain enrolled and is 323.18 not required to submit annual or periodic applications. To 323.19 return to the resident district or to transfer to a different 323.20 nonresident district, the parent or guardian of the pupil must 323.21 provide notice to the resident district or apply to a different 323.22 nonresident district byJanuary 15June 1 for enrollment 323.23 beginning the following school year. Each district must accept 323.24 or reject an application it receives and notify the parent or 323.25 guardian in writing within 30 calendar days of receiving the 323.26 application. A notification of acceptance must include the date 323.27 enrollment can begin. Within ten days of receiving the 323.28 notification from the nonresident district, the parent or 323.29 guardian must inform the nonresident district whether the pupil 323.30 intends to enroll in the nonresident district. 323.31 Sec. 3. Minnesota Statutes 1998, section 124D.09, 323.32 subdivision 5, is amended to read: 323.33 Subd. 5. [AUTHORIZATION; NOTIFICATION.]Notwithstanding323.34any other law to the contrary,An 11th or 12th grade pupil 323.35 enrolled in a school or an American Indian-controlled tribal 323.36 contract or grant school eligible for aid under section 124D.83, 324.1 except a foreign exchange pupil enrolled in a district under a 324.2 cultural exchange program, may apply to an eligible institution, 324.3 as defined in subdivision 3, to enroll in nonsectarian courses 324.4 offered by that post-secondary institution. If an institution 324.5 accepts a secondary pupil for enrollment under this section, the 324.6 institution shall send written notice to the pupil, the pupil's 324.7 school or school district, and the commissioner within ten days 324.8 of acceptance. The notice must indicate the course and hours of 324.9 enrollment of that pupil. If the pupil enrolls in a course for 324.10 post-secondary credit, the institution must notify the pupil 324.11 about payment in the customary manner used by the institution. 324.12 Sec. 4. Minnesota Statutes 1998, section 124D.09, 324.13 subdivision 6, is amended to read: 324.14 Subd. 6. [COUNSELINGPARENTAL CONSENT.]To the extent324.15possible, the school or school district must provide counseling324.16services to pupils and their parents or guardian before the324.17pupils enroll in courses under this section to ensure that the324.18pupils and their parents or guardian are fully aware of the324.19risks and possible consequences of enrolling in post-secondary324.20courses. The school or school district must provide information324.21on the program including who may enroll, what institutions and324.22courses are eligible for participation, the decision-making324.23process for granting academic credits, financial arrangements324.24for tuition, books and materials, eligibility criteria for324.25transportation aid, available support services, the need to324.26arrange an appropriate schedule, consequences of failing or not324.27completing a course in which the pupil enrolls, the effect of324.28enrolling in this program on the pupil's ability to complete the324.29required high school graduation requirements, and the academic324.30and social responsibilities that must be assumed by the pupils324.31and their parents or guardian. The person providing counseling324.32shall encourage pupils and their parents or guardian to also use324.33available counseling services at the post-secondary institutions324.34before the quarter or semester of enrollment to ensure that324.35anticipated plans are appropriate.324.36 Prior to enrolling in a course, the pupil and the pupil's 325.1 parents or guardian must sign a form that must be provided by 325.2 the school or school district and may be obtained from a 325.3 post-secondary institution statingthat they have received the325.4information specified in this subdivision andthat they 325.5 understand the responsibilities that must be assumed in 325.6 enrolling in this program. The department must, upon request, 325.7 provide technical assistance to a school or school district in 325.8 developing appropriate forms and counseling guidelines. 325.9 Sec. 5. Minnesota Statutes 1998, section 124D.09, 325.10 subdivision 7, is amended to read: 325.11 Subd. 7. [DISSEMINATION OF INFORMATION; NOTIFICATION OF 325.12 INTENT TO ENROLL.]By March 1 of each year,A district must 325.13 adopt policies for deadlines and provide general information 325.14 about the program to all pupils in grades 10 and 11.To assist325.15the district in planning, a pupil shall inform the district by325.16March 30 of each year of the pupil's intent to enroll in325.17post-secondary courses during the following school year. A325.18pupil is not bound by notifying or not notifying the district by325.19March 30.325.20 Sec. 6. Minnesota Statutes 1998, section 124D.09, 325.21 subdivision 12, is amended to read: 325.22 Subd. 12. [CREDITS.] A pupil may enroll in a course under 325.23 this section for either secondary credit or post-secondary 325.24 credit. At the time a pupil enrolls in a course, the pupil 325.25 shall designate whether the course is for secondary or 325.26 post-secondary credit. A pupil taking several courses may 325.27 designate some for secondary credit and some for post-secondary 325.28 credit. A pupil must not audit a course under this section. 325.29 A district shall grant academic credit to a pupil enrolled 325.30 in a course for secondary credit if the pupil successfully 325.31 completes the course.Seven quarter or four semester college325.32credits equal at least one full year of high school credit.325.33Fewer college credits may be prorated. A district must also325.34grant academic credit to a pupil enrolled in a course for325.35post-secondary credit if secondary credit is requested by a325.36pupil. If no comparable course is offered by the district, the326.1district must, as soon as possible, notify the commissioner, who326.2shall determine the number of credits that shall be granted to a326.3pupil who successfully completes a course. If a comparable326.4course is offered by the district, the school board shall grant326.5a comparable number of credits to the pupil. If there is a326.6dispute between the district and the pupil regarding the number326.7of credits granted for a particular course, the pupil may appeal326.8the board's decision to the commissioner. The commissioner's326.9decision regarding the number of credits shall be final.326.10 The secondary credits granted to a pupil must be counted 326.11 toward the graduation requirements and subject area requirements 326.12 of the district.Evidence of successful completion of each326.13course and secondary credits granted must be included in the326.14pupil's secondary school record. A pupil shall provide the326.15school with a copy of the pupil's grade in each course taken for326.16secondary credit under this section. Upon the request of a326.17pupil, the pupil's secondary school record must also include326.18evidence of successful completion and credits granted for a326.19course taken for post-secondary credit. In either case, the326.20record must indicate that the credits were earned at a326.21post-secondary institution.326.22If a pupil enrolls in a post-secondary institution after326.23leaving secondary school, the post-secondary institution must326.24award post-secondary credit for any course successfully326.25completed for secondary credit at that institution. Other326.26post-secondary institutions may award, after a pupil leaves326.27secondary school, post-secondary credit for any courses326.28successfully completed under this section. An institution may326.29not charge a pupil for the award of credit.326.30 Sec. 7. Minnesota Statutes 1998, section 124D.10, 326.31 subdivision 1, is amended to read: 326.32 Subdivision 1. [PURPOSESEXPECTED OUTCOMES.] (a) 326.33 Thepurpose of this section isexpected outcomes of a charter 326.34 school are to: 326.35 (1) improve pupil learning; 326.36 (2) increase learning opportunities for pupils; 327.1 (3) encourage the use of different and innovative teaching 327.2 methods; 327.3 (4) require the measurement of learning outcomes and create 327.4 different and innovative forms of measuring outcomes; 327.5 (5) establish new forms of accountability for schools; or 327.6 (6) create new professional opportunities for teachers, 327.7 including the opportunity to be responsible for the learning 327.8 program at the school site. 327.9 (b) This section does not provide a means to keep open a 327.10 school that otherwise would be closed. Applicants in these 327.11 circumstances bear the burden of proving that conversion to a 327.12 charter school fulfills a purpose specified in this subdivision, 327.13 independent of the school's closing. 327.14 Sec. 8. Minnesota Statutes 1998, section 124D.10, 327.15 subdivision 6, is amended to read: 327.16 Subd. 6. [CONTRACT.] The sponsor's authorization for a 327.17 charter school must be in the form of a written contract signed 327.18 by the sponsor and the board of directors of the charter 327.19 school. The contract for a charter school must be in writing 327.20 and contain at least the following: 327.21 (1) a description of a program that carries out one or more 327.22 of thepurposesexpected outcomes in subdivision 1; 327.23 (2) specific outcomes pupils are to achieve under 327.24 subdivision 10; 327.25 (3) admission policies and procedures; 327.26 (4) management and administration of the school; 327.27 (5) requirements and procedures for program and financial 327.28 audits; 327.29 (6) how the school will comply with subdivisions 8, 13, 16, 327.30 and 23; 327.31 (7) assumption of liability by the charter school; 327.32 (8) types and amounts of insurance coverage to be obtained 327.33 by the charter school; 327.34 (9) the term of the contract, which may be up to three 327.35 years; and 327.36 (10) if the board of directors or the operators of the 328.1 charter school provide special instruction and services for 328.2 children with a disability under sections 125A.03 to 125A.24, 328.3 and 125A.65, a description of the financial parameters within 328.4 which the charter school will operate to provide the special 328.5 instruction and services to children with a disability. 328.6 Sec. 9. Minnesota Statutes 1998, section 124D.10, 328.7 subdivision 15, is amended to read: 328.8 Subd. 15. [REVIEW AND COMMENT.] The department must review 328.9 and comment on the evaluation, by the chartering school 328.10 district, of the performance of a charter school before the 328.11 charter school's contract is renewed.The information from the328.12review and comment shall be reported to the state board of328.13education in a timely manner. Periodically, the state board328.14shall report trends or suggestions based on the evaluation of328.15charter school contracts to the education committees of the328.16state legislature.328.17 Sec. 10. Minnesota Statutes 1998, section 124D.10, 328.18 subdivision 19, is amended to read: 328.19 Subd. 19. [DISSEMINATEAVAILABLE INFORMATION.] The 328.20sponsor, the operators, and thedepartment of children, 328.21 families, and learning mustdisseminatemake information 328.22 available to the public on how to form and operate a charter 328.23 school and how to utilize the offerings of a charter school. 328.24 Particular groups to be targeted include low-income families and 328.25 communities, and students of color. 328.26 Sec. 11. Minnesota Statutes 1998, section 124D.115, 328.27 subdivision 3, is amended to read: 328.28 Subd. 3. [PROGRAM REIMBURSEMENT.] (a)State funds are328.29provided to reimburse school breakfasts.Each school year, the 328.30 state must reimburse schools in the amount of 5.1 cents for each 328.31 fully paid breakfast and for each free and reduced price 328.32 breakfast not eligible for the "severe need" rate. 328.33 (b) In addition to paragraph (a), each school year the 328.34 state must reimburse schools 10.5 cents for each free and 328.35 reduced price breakfast not eligible for the "severe need" rate 328.36 if between 33 and 40 percent of the school lunches served during 329.1 the second preceding school year were served free or at a 329.2 reduced price. 329.3 Sec. 12. Minnesota Statutes 1998, section 124D.118, 329.4 subdivision 2, is amended to read: 329.5 Subd. 2. [ESTABLISHMENT; SCHOOL PARTICIPATION.]Each329.6district in the state is encouraged to participate in the329.7state-supported school milk program for kindergartners.329.8 Participating districts must provide one serving of milk on each 329.9 school day to each kindergarten student attending a public or 329.10 nonpublic school in the district.No student is required to329.11accept the milk that is provided by the district.The program 329.12 must be promoted and operated under the direction of the 329.13 commissioner or the commissioner's designee. 329.14 Sec. 13. Minnesota Statutes 1998, section 124D.118, 329.15 subdivision 3, is amended to read: 329.16 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 329.17 (a) The commissioner shall: 329.18 (1)encourage all districts to participate in the school329.19milk program for kindergartners;329.20(2) preparemaintain program guidelines, not subject to329.21chapter 14 until July 1, 1998,which will effectively and 329.22 efficiently distribute appropriated and donated money to 329.23 participating districts; and 329.24(3)(2) seek donations and matching funds from appropriate 329.25 private and public sources. 329.26 (b) Program guidelines may provide for disbursement to 329.27 districts through a mechanism of prepayments or by reimbursement 329.28 for approved program expenses. 329.29 Sec. 14. Minnesota Statutes 1998, section 124D.28, 329.30 subdivision 1, is amended to read: 329.31 Subdivision 1. [MANDATORY COMPONENTSEXPECTATIONS.] The 329.32 expected outcomes of a family connections program must include: 329.33 (1)participation by a designateddesignation of an 329.34 individual as a career teacher, principal-teacher, or counselor 329.35 teacher; 329.36 (2) an increased emphasis on each individual child's unique 330.1 learning and development needs beginning with early childhood 330.2 family education; 330.3 (3)procedures to give the career teacher a major330.4responsibility for leadership of the instructional and330.5noninstructional activities of each child beginning with early330.6childhood family education;330.7(4) procedures to involveincreased involvement of parents 330.8 in the learning and development experiences of their 330.9 children; and 330.10(5) procedures to implement outcome based education by330.11focusing on the needs of the learner;330.12(6) procedures to coordinate and integrate(4) increased 330.13 involvement of the instructional program with all community 330.14 education programs;330.15(7) procedures to concentrate career teacher programs at330.16sites that provide early childhood family education and330.17subsequent learning and development programs; and330.18(8) procedures for the district to fund the program. 330.19 Sec. 15. Minnesota Statutes 1998, section 124D.29, is 330.20 amended by adding a subdivision to read: 330.21 Subd. 6. [DISTRICT COMPONENTS.] The school board and the 330.22 exclusive bargaining representative of the teachers that has a 330.23 family connections program shall negotiate: 330.24 (1) staff to student ratios; 330.25 (2) procedures for teachers, principals, and counselors to 330.26 apply for and renew the position of career teacher, 330.27 principal-teacher, or counselor teacher; and 330.28 (3) the duties of the career teacher, principal-teacher, or 330.29 counselor teacher. 330.30 Sec. 16. Minnesota Statutes 1998, section 124D.30, 330.31 subdivision 3, is amended to read: 330.32 Subd. 3. [COMMISSIONER APPROVAL.] The commissionermay330.33 shall approve plans and applications for districts throughout 330.34 the state for family connections aid. The commissioner shall 330.35 establish application procedures and deadlines. 330.36 Sec. 17. Minnesota Statutes 1998, section 124D.34, 331.1 subdivision 4, is amended to read: 331.2 Subd. 4. [FOUNDATION PROGRAMS AND DUTIES.] The foundation 331.3 shall advance applied leadership and intracurricular vocational 331.4 learning experiences for students.These may include, but are331.5not limited to:331.6(1) recognition programs and awards for students331.7demonstrating excellence in applied leadership;331.8(2) summer programs for student leadership, career331.9development, applied academics, and mentorship programs with331.10business and industry;331.11(3) recognition programs for teachers, administrators, and331.12others who make outstanding contributions to school-to-work331.13programs;331.14(4) outreach programs to increase the involvement of urban331.15and suburban students;331.16(5) organized challenges requiring cooperation and331.17competition for secondary and post-secondary students;331.18(6) assistance and training to community teams to increase331.19career awareness and empowerment of youth as community leaders;331.20and331.21(7) assessment and activities in order to plan for and331.22implement continuous improvement.331.23To the extent possible, the foundation shall make these331.24programs available to students in all parts of the state.The 331.25 foundation may receive public and private money, grants, and 331.26 in-kind services and goods from nonstate sources without 331.27 complying with section 7.09, subdivision 1. 331.28 Sec. 18. Minnesota Statutes 1998, section 124D.35, is 331.29 amended to read: 331.30 124D.35 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 331.31The commissioner shall establishA youth entrepreneurship 331.32 education programto improve the academic and entrepreneurial331.33skills of students and aid in their transition from school to331.34business creation. The programshall strengthen local economies 331.35 by creating jobs that enable citizens to remain in their 331.36 communities and to foster cooperation among educators, economic 332.1 development professionals, business leaders, and representatives 332.2 of labor. Assistance under this section shall be available to 332.3 new or existing student-operated or school-operated businesses 332.4 that have an educational purpose, and provide service or 332.5 products for customers or clients who do not attend or work at 332.6 the sponsoring school. The commissioner may require an equal 332.7 local match for assistance under this section up to the maximum 332.8 grant amount of $20,000. 332.9 Sec. 19. Minnesota Statutes 1998, section 124D.37, is 332.10 amended to read: 332.11 124D.37 [PURPOSEEXPECTED OUTCOMES OF THE MINNESOTA YOUTH 332.12 WORKS ACT.] 332.13 Thepurposesexpected outcomes of sections 124D.37 to 332.14 124D.45 are to: 332.15 (1)renew the ethic ofpromote civic responsibility in 332.16 Minnesota; 332.17 (2)empower youth toimprovetheir life opportunities332.18throughyouth literacy, job placement, and other essential life 332.19 skills; 332.20 (3)empower governmentimprove government'sto meet its332.21 responsibility to prepare young people to be contributing 332.22 members of society; 332.23 (4) help meethumancivic, educational, environmental, and 332.24 public safety needs, particularly those needs relating to 332.25 poverty; 332.26 (5)prepare a citizenry that is academically competent,332.27ready for work, and socially responsible;332.28(6)demonstrate the connection between youth and meaningful 332.29 communityservice, community service and education, and332.30education and meaningful opportunities in the business332.31community;332.32(7) demonstrate the connection between providing332.33opportunities for at-risk youth and reducing crime rates and the332.34social costs of troubled youthactivities; 332.35(8)(6) create linkages for a comprehensive youth service 332.36 and learning program in Minnesotaincluding school age programs,333.1higher education programs, youth work programs, and service333.2corps programs; and 333.3(9)(7) coordinate federal and state activities that 333.4 advance the purposes in this section. 333.5 Sec. 20. Minnesota Statutes 1998, section 124D.40, 333.6 subdivision 2, is amended to read: 333.7 Subd. 2. [GRANT AUTHORITY.] The commissionand, beginning333.8January 1, 1997, the councilmust use any state appropriation 333.9 and any available federal funds, including any grant received 333.10 under federal law, to award grants to establish programs for 333.11 youth works meeting the requirements of section 124D.41. At 333.12 least one grant each must be available for a metropolitan 333.13 proposal, a rural proposal, and a statewide proposal. If a 333.14 portion of the suburban metropolitan area is not included in the 333.15 metropolitan grant proposal, the statewide grant proposal must 333.16 incorporate at least one suburban metropolitan area.In333.17awarding grants, the commission and, beginning January 1, 1997,333.18the council may select at least one residential proposal and one333.19nonresidential proposal, provided the proposals meet or exceed333.20the criteria in section 124D.41.333.21 Sec. 21. Minnesota Statutes 1998, section 124D.41, is 333.22 amended to read: 333.23 124D.41 [GRANT APPLICATIONS.] 333.24 Subdivision 1. [APPLICATIONS REQUIRED.] An organization 333.25 seeking federal or state grant money under sections 124D.39 to 333.26 124D.44 shall prepare and submit to the commissionand,333.27beginning January 1, 1997, the councilan application that meets 333.28 the requirementsof this sectiondeveloped by the commission. 333.29 The commissionand, beginning January 1, 1997, the councilmust 333.30 develop, and the applying organizations must comply with, the333.31form and manner of the applicationrequirements that meet the 333.32 expected outcomes in section 124D.37. 333.33 Subd. 2. [APPLICATION CONTENT.] An applicant on its 333.34 application must:describe how it intends to meet the expected 333.35 outcomes in section 124D.37. 333.36(1) propose a program to provide participants the334.1opportunity to perform community service to meet specific unmet334.2community needs, and participate in classroom, work-based, and334.3service-learning;334.4(2) assess the community's unmet educational, human,334.5environmental, and public safety needs, the resources and334.6programs available for meeting those needs, and how young people334.7participated in assessing community needs;334.8(3) describe the educational component of the program,334.9including classroom hours per week, classroom time for334.10participants to reflect on the program experience, and334.11anticipated academic outcomes related to the service experience;334.12(4) describe the work to be performed, the ratio of youth334.13participants to crew leaders and mentors, and the expectations334.14and qualifications for crew leaders and mentors;334.15(5) describe local funds or resources available to meet the334.16match requirements of section 124D.44;334.17(6) describe any funds available for the program from334.18sources other than the requested grant;334.19(7) describe any agreements with local businesses to334.20provide participants with work-learning opportunities and334.21mentors;334.22(8) describe any agreement with local post-secondary334.23educational institutions to offer participants course credits334.24for their community service-learning experience;334.25(9) describe any agreement with a local high school or an334.26alternative learning center to provide remedial education,334.27credit for community service work and work-based learning, or334.28graduate equivalency degrees;334.29(10) describe any pay for service or other program delivery334.30mechanism that will provide reimbursement for benefits conferred334.31or recover costs of services participants perform;334.32(11) describe how local resources will be used to provide334.33support and assistance for participants to encourage them to334.34continue with the program, fulfill the terms of the contract,334.35and remain eligible for any postservice benefit;334.36(12) describe the arbitration mechanism for dispute335.1resolution required under section 124D.42, subdivision 2;335.2(13) describe involvement of community leaders in335.3developing broad-based support for the program;335.4(14) describe the consultation and sign-off process to be335.5used with any local labor organization representing employees in335.6the area engaged in work similar to that proposed for the335.7program to ensure that no current employees or available335.8employment positions will be displaced by program participants;335.9(15) certify to the commission and, beginning January 1,335.101997, the council, and to any certified bargaining335.11representatives representing employees of the applying335.12organization that the project will not decrease employment335.13opportunities that would be available without the project; will335.14not displace current employees including any partial335.15displacement in the form of reduced hours of work other than335.16overtime, wages, employment benefits, or regular seasonal work;335.17will not impair existing labor agreements; and will not result335.18in the substitution of project funding for preexisting funds or335.19sources of funds for ongoing work;335.20(16) describe the length of the required service period,335.21which may not be less than six months or more than two years, a335.22method to incorporate a participant's readiness to advance or335.23need for postservice financial assistance into individual335.24service requirements, and any opportunity for participating part335.25time or in another program;335.26(17) describe a program evaluation plan that contains335.27cost-effectiveness measures, measures of participant success335.28including educational accomplishments, job placements, community335.29contributions, and ongoing volunteer activities, outcome335.30measures based on a preprogram and postprogram survey of335.31community rates of arrest, incarceration, teenage pregnancy, and335.32other indicators of youth in trouble, and a list of local335.33resources dedicated to reducing these rates;335.34(18) describe a three-year financial plan for maintaining335.35the program;335.36(19) describe the role of local youth in developing all336.1aspects of the grant proposal; and336.2(20) describe the process by which the local private336.3industry council participated in, and reviewed the grant336.4application.336.5 Sec. 22. Minnesota Statutes 1998, section 124D.42, 336.6 subdivision 7, is amended to read: 336.7 Subd. 7. [TRAINING AND EDUCATION REQUIREMENTS.] Each 336.8 grantee organization must assess and work to enhance the 336.9 educational level of each entering participant.Each grantee336.10shall work to enhance the educational skills of each336.11participant. The commission and, beginning January 1, 1997, the336.12council may coordinate or contract with educational institutions336.13or other providers for educational services and evaluation.All 336.14 grantees shall give priority to educating and training 336.15 participants who do not have a high school diploma or its 336.16 equivalent, or who cannot afford post-secondary training and 336.17 education. 336.18 Sec. 23. Minnesota Statutes 1998, section 124D.46, 336.19 subdivision 1, is amended to read: 336.20 Subdivision 1. [GOALSESTABLISHMENT.]To better prepare336.21all learners to make transitions between education and336.22employment,A comprehensive education and employment transitions 336.23 system is established that is driven by multisector partnerships 336.24 and takes a lifelong approach to workforce development. 336.25 Thegoals of thestatewide education and employment transitions 336.26 systemareshall develop and implement methods: 336.27 (1) to improve the skills learners need to achieve greater 336.28 levels of self-sufficiency through education, training, and 336.29 work; 336.30 (2) to improve work-related counseling and information 336.31 about career opportunities and vocational education programs 336.32 available to learners to facilitate workforce development; 336.33 (3) to integrate opportunities for work-based learning, 336.34 service-learning, and other applied learning methods into the 336.35elementary, secondary, and post-secondary curriculum andstate 336.36 and local graduation standards; 337.1(4) to increase participation in employment opportunities337.2and demonstrate the relationship between education and337.3employment at the elementary, secondary, and post-secondary337.4education levels;337.5(5)(4) to promote the efficient use of public and private 337.6 resources by coordinating elementary, secondary, and 337.7 post-secondary education with related government programs; 337.8(6)(5) to expand educational options available to all 337.9 learners through collaborative efforts between school districts, 337.10 post-secondary institutions, employers, organized labor, 337.11 workers, learners, parents, community-based organizations, and 337.12 other interested parties; 337.13(7)(6) to increase opportunities for women, minorities, 337.14 individuals with a disability, and at-risk learners to fully 337.15 participate in work-based learning; 337.16(8) to establish performance standards for learners that337.17integrate state and local graduation standards and generally337.18recognized industry and occupational skill standards;and 337.19(9)(7) to provide support systems including a unified 337.20 labor market information system; a centralized quality assurance 337.21 system with information on learner achievement, employer 337.22 satisfaction, and measurable system outcomes; a statewide 337.23 marketing system to promote the importance of lifework 337.24 development; a comprehensive professional development system for 337.25 public and private sector partners; and a comprehensive system 337.26 for providing technical support to local partnerships for 337.27 education and employment transitions. 337.28 Sec. 24. Minnesota Statutes 1998, section 124D.47, 337.29 subdivision 2, is amended to read: 337.30 Subd. 2. [YOUTH APPRENTICESHIP PROGRAMS.] (a) A 337.31 comprehensive youth apprenticeship program must require 337.32 representatives of secondary and post-secondary school systems, 337.33 affected local businesses, industries, occupations and labor, as 337.34 well as the local community, to be actively and collaboratively 337.35 involved in advising and managing the program and ensuring, in 337.36 consultation with local private industry councils, that the 338.1 youth apprenticeship program meets local labor market demands, 338.2 provides student apprentices with the high skill training 338.3 necessary for career advancement, meets applicable state 338.4 graduation requirements and labor standards, pays apprentices 338.5 for their work and provides support services to program 338.6 participants. 338.7 (b) Local employers, collaborating with labor organizations 338.8 where appropriate, must assist the program by analyzing 338.9 workplace needs, creating work-related curriculum, employing and 338.10 adequately paying youth apprentices engaged in work-related 338.11 learning in the workplace, training youth apprentices to become 338.12 skilled in an occupation, providing student apprentices with a 338.13 workplace mentor, periodically informing the school of an 338.14 apprentice's progress, and making a reasonable effort to employ 338.15 youth apprentices who successfully complete the program. 338.16 (c) A student participating in a comprehensive youth 338.17 apprenticeship program must sign a youth apprenticeship 338.18 agreement with participating entities that obligates youth 338.19 apprentices, their parents or guardians, employers, and schools 338.20 to meet program requirements; indicates how academic338.21instruction, work-based learning, and worksite learning and338.22experience will be integrated; ensures that successful youth338.23apprentices will receive a recognized credential of academic and338.24occupational proficiency; and establishes the wage rate and338.25other benefits for which youth apprentices are eligible while338.26employed during the program. 338.27(d) Secondary school principals, counselors, or business338.28mentors familiar with the education to employment transitions338.29system must inform entering secondary school students about338.30available occupational and career opportunities and the option338.31of entering a youth apprenticeship or other work-based learning338.32program to obtain post-secondary academic and occupational338.33credentials.338.34 Sec. 25. Minnesota Statutes 1998, section 124D.49, 338.35 subdivision 3, is amended to read: 338.36 Subd. 3. [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 339.1 SYSTEMS.] A local education and employment transitions 339.2 partnership must assess the needs of employers, employees, and 339.3 learners, and develop a plan for implementing and achieving the 339.4 objectives of a local or regional education and employment 339.5 transitions system. The plan must provide for a comprehensive 339.6 local system for assisting learners and workers in making the 339.7 transition from school to work or for retraining in a new 339.8 vocational area. Theobjectivesexpected outcomes of a local 339.9 education and employment transitions system include: 339.10 (1) increasing the effectiveness of the educational 339.11 programsand curriculum of elementary, secondary, and339.12post-secondary schoolswhich meet state and local graduation 339.13 standards andthe work site in preparingprepare students in the 339.14 skills and knowledge needed to be successful in the workplace; 339.15 (2) implementing learner outcomes for students in grades 339.16 kindergarten through 12 designed to introduce the world of work 339.17 and to explore career opportunities, including nontraditional 339.18 career opportunities; 339.19 (3)eliminating barriers to providing effective integrated339.20applied learning, service-learning, or work-based curriculum;339.21(4) increasing opportunities to apply academic knowledge339.22and skills, including skills needed in the workplace, in local339.23settings which include the school, school-based enterprises,339.24post-secondary institutions, the workplace, and the community;339.25(5) increasing applied instruction in the attitudes and339.26skills essential for success in the workplace, including339.27cooperative working, leadership, problem-solving, and respect339.28for diversity;339.29(6)providing staff training for vocational guidance 339.30 counselors, teachers, and other appropriate staff in the 339.31 importance of preparing learners for the transition to work, and 339.32 in methods of providing instruction that incorporate applied 339.33 learning, work-based learning, and service-learning experiences; 339.34(7)(4) identifying and enlisting local and regional 339.35 employers who can effectively provide work-based or 339.36 service-learning opportunities, including, but not limited to, 340.1 apprenticeships, internships, and mentorships; 340.2(8)(5) recruiting community and workplace mentors 340.3 including peers, parents, employers and employed individuals 340.4 from the community, and employers of high school students; 340.5(9)(6) identifying current and emerging educational, 340.6 training, and employment needs of the area or region, especially 340.7 within industries with potential for job growth; 340.8(10)(7) improving the coordination and effectiveness of 340.9 local vocational and job training programs, including vocational 340.10 education, adult basic education, tech prep, apprenticeship, 340.11 service-learning, youth entrepreneur, youth training and 340.12 employment programs administered by the commissioner of economic 340.13 security, and local job training programs under the Job Training 340.14 Partnership Act, United States Code, title 29, section 1501, et 340.15 seq.; 340.16(11)(8) identifying and applying for federal, state, 340.17 local, and private sources of funding for vocational or applied 340.18 learning programs; 340.19(12)(9) providing students with current information and 340.20 counseling about career opportunities, potential employment, 340.21 educational opportunities in post-secondary institutions, 340.22 workplaces, and the community, and the skills and knowledge 340.23 necessary to succeed; 340.24(13) providing educational technology, including340.25interactive television networks and other distance learning340.26methods, to ensure access to a broad variety of work-based340.27learning opportunities;340.28(14)(10) including students with disabilities in a 340.29 district's vocational or applied learning program and ways to 340.30 serve at-risk learners through collaboration with area learning 340.31 centers under sections 123A.05 to 123A.09, or other alternative 340.32 programs; and 340.33(15)(11) providing a warranty to employers, post-secondary 340.34 education programs, and other post-secondary training programs, 340.35 that learners successfully completing a high school work-based 340.36 or applied learning program will be able to apply the knowledge 341.1 and work skills included in the program outcomes or graduation 341.2 requirements. The warranty shall require education and training 341.3 programs to continue to work with those learners that need 341.4 additional skill development until they can demonstrate 341.5 achievement of the program outcomes or graduation requirements. 341.6 Sec. 26. Minnesota Statutes 1998, section 124D.65, 341.7 subdivision 6, is amended to read: 341.8 Subd. 6. [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 341.9 counting the number of pupils of limited English proficiency for 341.10 purposes of this section, districts may include pupils of 341.11 limited English proficiency who attend nonpublic schools in the 341.12 district. A district which counts those pupils and receives aid 341.13 pursuant to this section must offer those pupils the same 341.14 programs on the same terms that it offers to pupils of limited 341.15 English proficiency who attend the public school. A program 341.16 provided for a nonpublic school pupil pursuant to this 341.17 subdivision must be provided at a public schoolor, a neutral 341.18 site as defined in section 123B.41, subdivision 13, the 341.19 nonpublic school, or any other suitable location. The school 341.20 district must make the final decision on the location of these 341.21 services. Nonpublic school pupils served by a district's 341.22 educational program for pupils of limited English proficiency 341.23 must be counted for average daily membership pursuant to 341.24 sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 341.25 1 to 4. 341.26 Sec. 27. Minnesota Statutes 1998, section 124D.74, 341.27 subdivision 1, is amended to read: 341.28 Subdivision 1. [PROGRAMDESCRIBEDOUTCOMES.] American 341.29 Indian language and culture education programs areprograms in341.30elementary and secondary schools enrolling American Indian341.31childrendesigned: 341.32 (1) to make the curriculum more relevant to the needs, 341.33 interests, and cultural heritage of American Indian pupils; 341.34 (2) to provide positive reinforcement of the self-image of 341.35 American Indian pupils; and 341.36 (3) to develop intercultural awareness among pupils, 342.1 parents, and staff.Program components may include:342.2instruction in American Indian language, literature, history,342.3and culture; development of support components for staff,342.4including in-service training and technical assistance in342.5methods of teaching American Indian pupils; research projects,342.6including experimentation with and evaluation of methods of342.7relating to American Indian pupils; provision of personal and342.8vocational counseling to American Indian pupils; modification of342.9curriculum, instructional methods, and administrative procedures342.10to meet the needs of American Indian pupils; and establishment342.11of cooperative liaisons with nonsectarian nonpublic, community,342.12tribal or alternative schools offering curricula which reflect342.13American Indian culture.Districts offering programs may make 342.14 contracts for the provision of program components by 342.15 nonsectarian nonpublic, community, tribal or alternative 342.16 schools. These programs may also be provided as components of 342.17 early childhood and family education programs. 342.18 Sec. 28. Minnesota Statutes 1998, section 124D.88, 342.19 subdivision 2, is amended to read: 342.20 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.]To the342.21extent money is available,The commissioner may approve projects 342.22 from applications submitted under this section. The grant money 342.23 must be used only to design, acquire, construct, expand, 342.24 remodel, improve, furnish, or equip the building or site of a 342.25 magnet school facility according to contracts entered into 342.26 within 24 months after the date on which a grant is awarded. 342.27 Sec. 29. Minnesota Statutes 1998, section 124D.892, is 342.28 amended to read: 342.29 124D.892 [OFFICE OFDESEGREGATION/INTEGRATION.] 342.30 Subdivision 1. [ESTABLISHMENT.] (a)An office of342.31desegregation/integration is established inThedepartment342.32 commissioner of children, families, and learningtomust 342.33 coordinate and support activities related to student enrollment, 342.34 student and staff recruitment and retention, transportation, and 342.35 interdistrict cooperation among metropolitan school districts. 342.36 (b) At the request of a metropolitan school district 343.1 involved in cooperative desegregation/integration efforts, the 343.2officecommissioner shall perform any of the following 343.3 activities: 343.4 (1) assist districts with interdistrict student transfers, 343.5 including student recruitment, counseling, placement, and 343.6 transportation; 343.7 (2) coordinate and disseminate information about schools 343.8 and programs; 343.9 (3) assist districts with new magnet schools and programs; 343.10 (4) assist districts in providing staff development and 343.11 in-service training; and 343.12 (5) coordinate and administer staff exchanges. 343.13 (c) Theofficecommissioner shall collect data on the 343.14 efficacy of districts' desegregation/integration efforts and 343.15 make recommendations based on the data. Theofficecommissioner 343.16 shall periodically consult with the metropolitan council to 343.17 coordinate school desegregation/integration efforts with the 343.18 housing, social, economic, and infrastructure needs of the 343.19 metropolitan area. Theofficecommissioner shall develop a 343.20 process for resolving students' disputes and grievances about 343.21 student transfers under a desegregation/integration plan. 343.22 Subd. 2. [COORDINATION.] The commissioner may request 343.23 information or assistance from, or contract with, any state or 343.24 local agency or officer, local unit of government, or recognized 343.25 expert to assist the commissioner in performing the activities 343.26 described in subdivision 1. 343.27 Subd. 3. [ADVISORY BOARD.] The commissioner shall 343.28 establish an advisory board composed of: 343.29 (1) eight superintendents, each of whom shall be selected 343.30 by the superintendents of the school districts located in whole 343.31 or in part within each of the eight metropolitan districts 343.32 established under section 473.123, subdivision 3c; and 343.33 (2) one person each selected by the Indian affairs council, 343.34 the council on Asian-Pacific Minnesotans, the council on Black 343.35 Minnesotans, and the council on affairs of Chicano/Latino people. 343.36 The advisory board shall advise theofficecommissioner on 344.1 complying with the requirements under subdivision 1. The 344.2 advisory board may solicit comments from teachers, parents, 344.3 students, and interested community organizations and others. 344.4 Sec. 30. Minnesota Statutes 1998, section 124D.894, is 344.5 amended to read: 344.6 124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 344.7 COMMITTEE.] 344.8 (a) The commissioner shall appoint a state multicultural 344.9 education advisory committee to advise the department and the 344.10 state board on multicultural education. The committee must have 344.11 12 members and be composed of representatives from among the 344.12 following groups and community organizations: African-American, 344.13 Asian-Pacific, Hispanic, and American Indian. 344.14 (b) The state committee shall provide information and 344.15 recommendations on: 344.16 (1) department procedures for reviewing and approving 344.17 district plans and disseminating information on multicultural 344.18 education; 344.19 (2) department procedures for improving inclusive education 344.20 plans, curriculum and instruction improvement plans, and 344.21 performance-based assessments; 344.22 (3) developing learner outcomes which are multicultural; 344.23 and 344.24 (4) other recommendations that will further inclusive, 344.25 multicultural education. 344.26(c) The committee shall also participate in determining the344.27criteria for and awarding the grants established under Laws344.281993, chapter 224, article 8, section 22, subdivision 8.344.29 Sec. 31. Minnesota Statutes 1998, section 124D.94, 344.30 subdivision 2, is amended to read: 344.31 Subd. 2. [CREATION OF FOUNDATION.] There is created the 344.32 Minnesota academic excellence foundation.The purpose of the344.33foundation shall be to promote academic excellence in Minnesota344.34public and nonpublic schools and communities through344.35public-private partnerships.The foundation shall be a 344.36 nonprofit organization. The board of directors of the 345.1 foundation and foundation activities are under the direction of 345.2 the state board of education. 345.3 Sec. 32. Minnesota Statutes 1998, section 124D.94, 345.4 subdivision 4, is amended to read: 345.5 Subd. 4. [FOUNDATION PROGRAMS.] The foundationmayshall 345.6 develop programs that advance the concept of educational 345.7 excellence in Minnesota public and nonpublic schools and 345.8 communities through public-private partnerships.These may345.9include, but are not limited to:345.10(a) recognition programs and awards for students345.11demonstrating academic excellence;345.12(b) summer institute programs for students with special345.13talents;345.14(c) recognition programs for teachers, administrators, and345.15others who contribute to academic excellence;345.16(d) summer mentorship programs with business and industry345.17for students with special career interests and high academic345.18achievements;345.19(e) governor's awards ceremonies and special campaigns to345.20promote awareness and expectation for academic achievement;345.21(f) an academic league to provide organized challenges345.22requiring cooperation and competition for public and nonpublic345.23pupils in elementary and secondary schools;345.24(g) systemic transformation initiatives and assistance and345.25training to community teams to increase school performance in345.26the state's education institutions through strategic quality345.27planning for continuous improvement, empowerment of multiple345.28stakeholders, validation of results via customer-supplier345.29relationships, and a total system approach based on best345.30practices in key process areas; and345.31(h) activities to measure customer satisfaction for345.32delivery of services to education institutions in order to plan345.33for and implement continuous improvement.345.34To the extent possible, the foundation shall make these345.35programs available to students in all parts of the state.345.36 Sec. 33. [REVISOR INSTRUCTION.] 346.1 In the next and subsequent editions of Minnesota Statutes 346.2 and Minnesota Rules, the revisor of statutes shall renumber each 346.3 section of Minnesota Statutes in column A with the number in 346.4 column B. The revisor shall also make necessary cross-reference 346.5 changes consistent with the renumbering. 346.6 A B 346.7 346.8 124D.35 124D.46, subd. 5 346.9 124D.46, subd. 4 268.665, subd. 7 346.10 124D.47, subd. 2 124D.46, subd. 6 346.11 Sec. 34. [REPEALER.] 346.12 (a) Minnesota Statutes 1998, sections 124D.02, subdivisions 346.13 2, 3, and 4; 124D.03, subdivisions 5, 7, 9, and 10; 124D.06; 346.14 124D.07; 124D.081, subdivision 1; 124D.09, subdivisions 2, 8, 346.15 25, and 26; 124D.10, subdivision 13; 124D.115, subdivisions 1 346.16 and 2; 124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 346.17 124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 124D.128, 346.18 subdivisions 1, 2, 3, 4, 5, and 7; 124D.31; 124D.34, subdivision 346.19 5; 124D.43; 124D.46, subdivision 3; 124D.47, subdivision 1; 346.20 124D.50, subdivisions 1, 2, and 3; 124D.60, subdivision 3; 346.21 124D.65, subdivisions 8, 9, and 10; 124D.68, subdivision 1; 346.22 124D.72; 124D.81, subdivision 7; 124D.88, subdivision 1; 346.23 124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; and 124D.93, 346.24 are repealed. 346.25 (b) Minnesota Statutes 1998, section 124D.128, subdivision 346.26 6, is repealed effective July 1, 2001. 346.27 ARTICLE 17 346.28 EDUCATION AND TECHNOLOGY 346.29 Section 1. Minnesota Statutes 1998, section 125B.05, 346.30 subdivision 1, is amended to read: 346.31 Subdivision 1. [INFORMATION SYSTEM.] The department of 346.32 children, families, and learning shall develop and maintaina346.33computerizedan information system for state information needs. 346.34 Sec. 2. Minnesota Statutes 1998, section 125B.05, 346.35 subdivision 2, is amended to read: 346.36 Subd. 2. [PURPOSES.] The purposes of thecomputerized346.37 information system shall be: 346.38 (a) To provide comparable and accurate educational 347.1 information in a manner which is timely and economical; 347.2 (b) To ensure accountability for state appropriations; 347.3 (c) To collect data to assess the needs of learners and 347.4 children; 347.5 (d) To provide school districts with an educational 347.6 information system capability which will meet school district 347.7 management needs; and 347.8 (e) To provide forcomputerizedanalysis of educational 347.9 information to meet the management needs of the state of 347.10 Minnesota. 347.11 Sec. 3. Minnesota Statutes 1998, section 125B.20, 347.12 subdivision 1, is amended to read: 347.13 Subdivision 1. [ESTABLISHMENT; PURPOSE.]The purpose of347.14developing a statewide school district telecommunications347.15network is to expand the availability of a broad range of347.16courses and degrees to students throughout the state, to share347.17information resources to improve access, quality, and347.18efficiency, to improve learning, and distance cooperative347.19learning opportunities, and to promote the exchange of ideas347.20among students, parents, teachers, media generalists,347.21librarians, and the public. In addition, through the347.22development of this statewide telecommunications network347.23emphasizing cost-effective, competitive connections, all347.24Minnesotans will benefit by enhancing access to347.25telecommunications technology throughout the state. Network347.26connections for school districts and public libraries will be347.27coordinated and fully integrated into the existing state347.28telecommunications and interactive television networks to347.29achieve comprehensive and efficient interconnectivity of school347.30districts and libraries to higher education institutions, state347.31agencies, other governmental units, agencies, and institutions347.32throughout Minnesota. A school district may apply to the347.33commissioner for a grant under subdivision 2, and a regional347.34public library may apply under subdivision 3.The Minnesota 347.35 education telecommunication council established in Laws 1995, 347.36 First Special Session chapter 3, article 12, section 7, shall 348.1 establish priorities for awarding grants, making grant awards, 348.2 and being responsible for the coordination of networks. 348.3 Sec. 4. Minnesota Statutes 1998, section 125B.20, 348.4 subdivision 4, is amended to read: 348.5 Subd. 4. [AWARD OF GRANTS.] The council shall develop 348.6 application forms and procedures for school district minimum 348.7 connectivity grants, enhanced telecommunications grants, and 348.8 regional library telecommunication access grants. The council 348.9 shall select the grant recipientand shall promptly notify any348.10applicant that is found not to be qualified. The commissioner 348.11 shall make the grant payments directly to the school district or 348.12 regional library system. At the request of the district, the 348.13 commissioner may make the grant payment directly to the 348.14 coordinating organization. If appropriations are insufficient 348.15 to fund all applications, the commissioner shall first fully 348.16 fund the minimum connectivity grants.Unsuccessful applicants348.17may reapply for a grant.348.18 Sec. 5. [REPEALER.] 348.19 Minnesota Statutes 1998, sections 125B.02; 125B.07, 348.20 subdivisions 1, 3, and 5; 125B.09; and 125B.11, are repealed. 348.21 ARTICLE 18 348.22 EDUCATION FUNDING 348.23 Section 1. Minnesota Statutes 1998, section 126C.05, 348.24 subdivision 1, is amended to read: 348.25 Subdivision 1. [PUPIL UNIT.] Pupil units for each 348.26 Minnesota resident pupil in average daily membership enrolled in 348.27 the district of residence, in another district under sections 348.28 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 348.29 124D.68; in a charter school under section 124D.10; or for whom 348.30 the resident district pays tuition under section 123A.18, 348.31 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 348.32 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 348.33 125A.65, shall be counted according to this subdivision. A 348.34 district may not count a person who is over the age of 21, 348.35 except as provided in section 125A.03, or who has graduated from 348.36 high school and is enrolled as a part-time student in a class or 349.1 program as a pupil unit. 349.2 (a) A prekindergarten pupil with a disability who is 349.3 enrolled in a program approved by the commissioner and has an 349.4 individual education plan is counted as the ratio of the number 349.5 of hours of assessment and education service to 825 with a 349.6 minimum of 0.28, but not more than one. 349.7 (b) A prekindergarten pupil who is assessed but determined 349.8 not to be handicapped is counted as the ratio of the number of 349.9 hours of assessment service to 825. 349.10 (c) A kindergarten pupil with a disability who is enrolled 349.11 in a program approved by the commissioner is counted as the 349.12 ratio of the number of hours of assessment and education 349.13 services required in the fiscal year by the pupil's individual 349.14 education program plan to 875, but not more than one. 349.15 (d) A kindergarten pupil who is not included in paragraph 349.16 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 349.17 thereafter. 349.18 (e) A pupil who is in any of grades 1 to 6 is counted as 349.19 1.06 pupil units for fiscal year 1995 and thereafter. 349.20 (f) A pupil who is in any of grades 7 to 12 is counted as 349.21 1.3 pupil units. 349.22 (g) A pupil who is in the post-secondary enrollment options 349.23 program is counted as 1.3 pupil units. 349.24 Sec. 2. Minnesota Statutes 1998, section 126C.31, is 349.25 amended to read: 349.26 126C.31 [POLICY.] 349.27Financing the education of our children is one of state349.28government's most important functions. In performing this349.29function, the state seeks to provide sufficient funding while349.30encouraging equity, accountability, and incentives toward349.31quality improvement. To help achieve these goals and to help349.32control future spending growth,The state will fund core 349.33 instruction and related support services, will facilitate 349.34 improvement inthequalityand delivery of programs and349.35 services, and will equalize revenues raised locally for 349.36 discretionary purposes. 350.1 Sec. 3. Minnesota Statutes 1998, section 126C.48, 350.2 subdivision 8, is amended to read: 350.3 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 350.4 Reductions in levies pursuant to sections 126C.48, subdivision 350.5 1, and 273.138, must be made prior to the reductions in clause 350.6 (2). 350.7 (2)Notwithstanding any other law to the contrary,350.8 Districts which received payments pursuant to sections 298.018; 350.9 298.23 to 298.28, except an amount distributed under section 350.10 298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 350.11 298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 350.12 upon severed mineral values, or recognized revenue pursuant to 350.13 section 477A.15; must not include a portion of these aids in 350.14 their permissible levies pursuant to those sections, but instead 350.15 must reduce the permissible levies authorized by this chapter 350.16 and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A 350.17 by the greater of the following: 350.18 (a) an amount equal to 50 percent of the total dollar 350.19 amount of the payments received pursuant to those sections or 350.20 revenue recognized pursuant to section 477A.15 in the previous 350.21 fiscal year; or 350.22 (b) an amount equal to the total dollar amount of the 350.23 payments received pursuant to those sections or revenue 350.24 recognized pursuant to section 477A.15 in the previous fiscal 350.25 year less the product of the same dollar amount of payments or 350.26 revenue times five percent. 350.27 (3) No reduction pursuant to this subdivision shall reduce 350.28 the levy made by the district pursuant to section 126C.13, to an 350.29 amount less than the amount raised by a levy of a net tax rate 350.30 of 6.82 percent times the adjusted net tax capacity for taxes 350.31 payable in 1990 and thereafter of that district for the 350.32 preceding year as determined by the commissioner. The amount of 350.33 any increased levy authorized by referendum pursuant to section 350.34 126C.17, subdivision 9, shall not be reduced pursuant to this 350.35 subdivision. The amount of any levy authorized by section 350.36 126C.43, to make payments for bonds issued and for interest 351.1 thereon, shall not be reduced pursuant to this subdivision. 351.2 (4) Before computing the reduction pursuant to this 351.3 subdivision of the health and safety levy authorized by sections 351.4 123B.57 and 126C.40, subdivision 5, the commissioner shall 351.5 ascertain from each affected school district the amount it 351.6 proposes to levy under each section or subdivision. The 351.7 reduction shall be computed on the basis of the amount so 351.8 ascertained. 351.9 (5)Notwithstanding any law to the contrary,Any amounts 351.10 received by districts in any fiscal year pursuant to sections 351.11 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 351.12 298.405; or any law imposing a tax on severed mineral values; 351.13 and not deducted from general education aid pursuant to section 351.14 126C.21, subdivision 4, clause (2), and not applied to reduce 351.15 levies pursuant to this subdivision shall be paid by the 351.16 district to the St. Louis county auditor in the following amount 351.17 by March 15 of each year, the amount required to be subtracted 351.18 from the previous fiscal year's general education aid pursuant 351.19 to section 126C.21, subdivision 4, which is in excess of the 351.20 general education aid earned for that fiscal year. The county 351.21 auditor shall deposit any amounts received pursuant to this 351.22 clause in the St. Louis county treasury for purposes of paying 351.23 the taconite homestead credit as provided in section 273.135. 351.24 ARTICLE 19 351.25 STATE ADMINISTRATION OF EDUCATION 351.26 Section 1. Minnesota Statutes 1998, section 127A.05, 351.27 subdivision 1, is amended to read: 351.28 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 351.29 shall be under the administrative control of the commissioner of 351.30 children, families, and learning which office is established. 351.31 The commissioner shall be the secretary of the state board. The 351.32 governor shall appoint the commissioner under the provisions of 351.33 section 15.06. 351.34 The commissioner shall be a person who possesses 351.35 educational attainment and breadth of experience in the 351.36 administration of public education and of the finances 352.1 pertaining thereto commensurate with the spirit and intent of 352.2 this code.Notwithstanding any other law to the contrary, the352.3commissioner may appoint two deputy commissioners who shall352.4serve in the unclassified service.The commissioner shall also 352.5 appoint other employees as may be necessary for the organization 352.6 of the department. The commissioner shall perform such duties 352.7 as the law and the rules of the state board may provide and be 352.8 held responsible for the efficient administration and discipline 352.9 of the department. The commissioner shall make recommendations 352.10 to the board and be charged with the execution of powers and 352.11 duties which the state board may prescribe, from time to time, 352.12 to promote public education in the state, to safeguard the 352.13 finances pertaining thereto, and to enable the state board to 352.14 carry out its duties. 352.15 Sec. 2. Minnesota Statutes 1998, section 127A.05, 352.16 subdivision 3, is amended to read: 352.17 Subd. 3. [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 352.18 EDUCATIONAL AGENCIES.] The commissioner of children, families, 352.19 and learning shalladopt goals for andexercise general 352.20 supervision over public schools and other public educational 352.21 agencies in the state, classify and standardize public352.22elementary and secondary schools, and prepare for them outlines352.23and suggested courses of study. The commissioner shall develop352.24a plan to attain the adopted goals. The commissioner may 352.25 recognize educational accrediting agencies for the sole purposes 352.26 of sections 120A.22, 120A.24, and 120A.26. 352.27 Sec. 3. Minnesota Statutes 1998, section 127A.05, 352.28 subdivision 4, is amended to read: 352.29 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 352.30 adopt new rules and amend them or amend any existing rules only 352.31 under specific authority.The commissioner may repeal any352.32existing rules.Notwithstanding the provisions of section 352.33 14.05, subdivision 4, the commissioner may grant a variance to 352.34 rules adopted by the commissioner upon application by a school 352.35 district for purposes of implementing experimental programs in 352.36 learning or school management. This subdivision shall not 353.1 prohibit the commissioner from making technical changes or 353.2 corrections to adopted rules. 353.3 Sec. 4. Minnesota Statutes 1998, section 127A.06, is 353.4 amended to read: 353.5 127A.06 [RECOMMENDATIONS; BUDGET.] 353.6The commissioner of children, families, and learning shall353.7recommend to the governor and legislature such modification and353.8unification of laws relating to the state system of education as353.9shall make those laws more readily understood and more effective353.10in execution.The commissioner of children, families, and 353.11 learning shall prepare a biennial education budget which shall 353.12 be submitted to the governor and legislature, such budget to 353.13 contain a complete statement of finances pertaining to the 353.14maintenanceoperations of the state department and to the 353.15 distribution of state aid. 353.16 Sec. 5. Minnesota Statutes 1998, section 127A.41, 353.17 subdivision 7, is amended to read: 353.18 Subd. 7. [SCHEDULE ADJUSTMENTS.](a) It is the intention353.19of the legislature to encourage efficient and effective use of353.20staff and facilities by districts. Districts are encouraged to353.21consider both cost and energy saving measures.353.22(b)Any district operating a program pursuant to sections 353.23 124D.12 to 124D.127, 124D.128, or 124D.25 to 124D.29, or 353.24 operating a commissioner-designated area learning center program 353.25 under section 123A.09, or that otherwise receives the approval 353.26 of the commissioner to operate its instructional program to 353.27 avoid an aid reduction in any year, may adjust the annual school 353.28 schedule for that program throughout the calendar year. 353.29 Sec. 6. Minnesota Statutes 1998, section 127A.42, 353.30 subdivision 2, is amended to read: 353.31 Subd. 2. [VIOLATIONS OF LAW.] The commissionershallmay 353.32 reduce the district'sspecialstate aid for any school year 353.33 whenever the board of the district authorizes or permits 353.34 violations of law within the districtby:. 353.35(1) employing a teacher who does not hold a valid teaching353.36license or permit in a public school;354.1(2) noncompliance with a mandatory rule of general354.2application promulgated by the state board in accordance with354.3statute, unless special circumstances make enforcement354.4inequitable, impose an extraordinary hardship on the district,354.5or the rule is contrary to the district's best interests;354.6(3) the district's continued performance of a contract made354.7for the rental of rooms or buildings for school purposes or for354.8the rental of any facility owned or operated by or under the354.9direction of any private organization, if the contract has been354.10disapproved, the time for review of the determination of354.11disapproval has expired, and no proceeding for review is354.12pending;354.13(4) any practice which is a violation of sections 1 and 2354.14of article 13 of the Constitution of the state of Minnesota;354.15(5) failure to reasonably provide for a resident pupil's354.16school attendance under Minnesota Statutes; or354.17(6) noncompliance with state laws prohibiting354.18discrimination because of race, color, creed, religion, national354.19origin, sex, age, marital status, status with regard to public354.20assistance or disability, as defined in section 363.03.354.21 The reduction must be made in the amount and upon the procedure 354.22 provided in this sectionor, in the case of the violation stated354.23in clause (1), upon the procedure provided in section 127A.43. 354.24 Sec. 7. [REPEALER.] 354.25 Minnesota Statutes 1998, sections 127A.05, subdivision 5; 354.26 and 127A.41, subdivision 4, are repealed. 354.27 ARTICLE 20 354.28 PERPICH CENTER FOR ARTS EDUCATION 354.29 Section 1. Minnesota Statutes 1998, section 129C.10, 354.30 subdivision 3, is amended to read: 354.31 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 354.32 the powers necessary for the care, management, and control of 354.33 the Lola and Rudy Perpich Minnesota center for arts education 354.34 and all its real and personal property. The powers shall 354.35 include, but are not limited to, those listed in this 354.36 subdivision. 355.1 (b) The board may employ and discharge necessary employees, 355.2 and contract for other services to ensure the efficient 355.3 operation of the center for arts education. 355.4 (c) The board may receive and award grants. The board may 355.5 establish a charitable foundation and accept, in trust or 355.6 otherwise, any gift, grant, bequest, or devise for educational 355.7 purposes and hold, manage, invest, and dispose of them and the 355.8 proceeds and income of them according to the terms and 355.9 conditions of the gift, grant, bequest, or devise and its 355.10 acceptance. The board must adopt internal procedures to 355.11 administer and monitor aids and grants. 355.12 (d)The board may establish or coordinate evening,355.13continuing education, extension, and summer programs for355.14teachers and pupils.355.15(e) The board may identify pupils who have artistic talent,355.16either demonstrated or potential, in dance, literary arts, media355.17arts, music, theater, and visual arts, or in more than one art355.18form.355.19(f)The board must educate pupils with artistic talent by 355.20 providing: 355.21 (1) an interdisciplinary academic and arts program for 355.22 pupils in the 11th and 12th grades. The total number of pupils 355.23 accepted under this clause and clause (2) shall not exceed 300; 355.24 (2) additional instruction to pupils for a 13th grade. 355.25 Pupils eligible for this instruction are those enrolled in 12th 355.26 grade who need extra instruction and who apply to the board, or 355.27 pupils enrolled in the 12th grade who do not meet learner 355.28 outcomes established by the board; 355.29 (3) intensive arts seminars for one or two weeks for pupils 355.30 in grades 9 to 12; 355.31 (4) summer arts institutes for pupils in grades 9 to 12; 355.32 (5) artist mentor and extension programs in regional sites; 355.33 and 355.34 (6) teacher education programs for indirect curriculum 355.35 delivery. 355.36(g) The board may determine the location for the Lola and356.1Rudy Perpich Minnesota center for arts education and any356.2additional facilities related to the center, including the356.3authority to lease a temporary facility.356.4(h)(e) The board must plan for the enrollment of pupils on 356.5 an equal basis from each congressional district. 356.6(i) The board may establish task forces as needed to advise356.7the board on policies and issues. The task forces expire as356.8provided in section 15.059, subdivision 6.356.9(j) The board may request the commissioner of children,356.10families, and learning for assistance and services.356.11(k) The board may enter into contracts with other public356.12and private agencies and institutions for residential and356.13building maintenance services if it determines that these356.14services could be provided more efficiently and less expensively356.15by a contractor than by the board itself. The board may also356.16enter into contracts with public or private agencies and356.17institutions, school districts or combinations of school356.18districts, or service cooperatives to provide supplemental356.19educational instruction and services.356.20(l) The board may provide or contract for services and356.21programs by and for the center for arts education, including a356.22store, operating in connection with the center; theatrical356.23events; and other programs and services that, in the356.24determination of the board, serve the purposes of the center.356.25(m)(f) The board may provide for transportation of pupils 356.26 to and from the center for arts education for all or part of the 356.27 school year, as the board considers advisable and subject to its356.28rules. Notwithstanding any other law to the contrary,and the 356.29 board may charge a reasonable fee for transportation of pupils. 356.30 Every driver providing transportation of pupils under this 356.31 paragraph must possess all qualifications required by the state 356.32 board of education.The board may contract for furnishing356.33authorized transportation under rules established by the356.34commissioner of children, families, and learning and may356.35purchase and furnish gasoline to a contract carrier for use in356.36the performance of a contract with the board for transportation357.1of pupils to and from the center for arts education. When357.2transportation is provided, scheduling of routes, establishment357.3of the location of bus stops, the manner and method of357.4transportation, the control and discipline of pupils, and any357.5other related matter is within the sole discretion, control, and357.6management of the board.357.7(n)(g) The board may provide room and board for its pupils. 357.8 If the board provides room and board, it shall charge a 357.9 reasonable fee for the room and board. The fee is not subject 357.10 to chapter 14 and is not a prohibited fee according to sections 357.11 123B.34 to 123B.39. 357.12(o)(h) The board may establish and set fees for services 357.13 and programs. If the board sets fees not authorized or 357.14 prohibited by the Minnesota public school fee law, it may do so 357.15 without complying with the requirements of section 123B.38. 357.16(p) The board may apply for all competitive grants357.17administered by agencies of the state and other government or357.18nongovernment sources.