Minnesota Legislature
SF 2242
1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
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 $3,950,000 ..... 2000 61.6 Of this amount: 61.7 (1) $2,550,000 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 Subd. 9. [RANGE ASSOCIATION OF MUNICIPALITIES AND 61.24 SCHOOLS.] For a grant to the range association of municipalities 61.25 and schools to provide a coordinated response to declining 61.26 enrollment in the region's school districts, including analysis 61.27 of curriculum, transportation, and district administration, and 61.28 to coordinate planning for the establishment of an area 61.29 vocational-technical training center open to all high school 61.30 students in the region: 61.31 $250,000 ..... 2000 61.32 This appropriation is available until June 30, 2001. 61.33 Subd. 10. [DECLINING PUPIL UNIT AID.] For declining pupil 61.34 unit aid: 61.35 $2,237,000 ..... 2000 61.36 $2,036,000 ..... 2001 62.1 Subd. 11. [AIRPORT RUNWAY IMPACT AID.] For airport runway 62.2 impact aid: 62.3 $31,000 ..... 2000 62.4 $66,000 ..... 2001 62.5 Subd. 12. [MAGNET SCHOOL INTEGRATION REVENUE.] For magnet 62.6 school integration revenue: 62.7 $64,000 ..... 2000 62.8 $140,000 ..... 2001 62.9 Sec. 84. [REPEALER.] 62.10 (a) Minnesota Statutes 1998, sections 123B.89; 123B.92, 62.11 subdivisions 6, 7, 8, and 10; and 127A.41, subdivisions 8 and 9, 62.12 are repealed. Laws 1997, First Special Session chapter 4, 62.13 article 1, section 62, subdivision 5, is repealed. 62.14 (b) Minnesota Statutes 1998, sections 120B.05; and 123B.64, 62.15 subdivision 4, are repealed effective for revenue for fiscal 62.16 year 2000. 62.17 (c) Minnesota Statutes 1998, sections 123B.64, subdivisions 62.18 1, 2, and 3; and 124D.65, subdivisions 1, 2, and 3, are repealed 62.19 effective for revenue for fiscal year 2001. 62.20 (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 62.21 subdivision 4; and 126C.06, are repealed effective the day 62.22 following final enactment. 62.23 Sec. 85. [EFFECTIVE DATES.] 62.24 When preparing the prekindergarten through grade 12 62.25 education conference committee report for adoption by the 62.26 legislature, the revisor shall combine all effective date 62.27 notations in this article into this effective dates section. 62.28 ARTICLE 2 62.29 SPECIAL PROGRAMS 62.30 Section 1. Minnesota Statutes 1998, section 121A.41, 62.31 subdivision 10, is amended to read: 62.32 Subd. 10. [SUSPENSION.] (a) "Suspension" means an action 62.33 by the school administration, under rules promulgated by the 62.34 school board, prohibiting a pupil from attending school for a 62.35 period of no more than ten school days. If a suspension is 62.36 longer than five days, the suspending administrator must provide 63.1 the superintendent with a reason for the longer suspension. 63.2 This definition does not apply to dismissal from school for one 63.3 school day or less, except as provided in federal law for a 63.4 student with a disability. Each suspension action may include a 63.5 readmission plan. The readmission plan shall include, where 63.6 appropriate, a provision for implementing alternative 63.7 educational services upon readmission and may not be used to 63.8 extend the current suspension. The school administration may 63.9 not impose consecutive suspensions against the same pupil for 63.10 the same course of conduct, or incident of misconduct, except 63.11 where the pupil will create an immediate and substantial danger 63.12 to self or to surrounding persons or property, or where the 63.13 district is in the process of initiating an expulsion, in which 63.14 case the school administration may extend the suspension to a 63.15 total of 15 days. In the case of a pupil with a 63.16 disability,school districts must comply with applicable federal63.17lawthe pupil's individual education plan team must meet 63.18 immediately but not more than ten school days after the date on 63.19 which the decision to remove the pupil from the pupil's current 63.20 education placement is made. The individual education plan team 63.21 shall at that meeting: 63.22 (1) conduct a review of the relationship between the 63.23 pupil's disability and the behavior subject to disciplinary 63.24 action; and 63.25 (2) determine the appropriateness of the pupil's education 63.26 plan. 63.27 (b) The requirements of the individual education plan team 63.28 meeting apply when: 63.29 (1) the parent requests a meeting; 63.30 (2) the pupil is removed from the pupil's current placement 63.31 for five or more consecutive days; or 63.32 (3) the pupil's total days of removal from the pupil's 63.33 placement during the school year exceed ten cumulative days in a 63.34 school year. 63.35 The school administration shall implement alternative 63.36 educational services when the suspension exceeds five days. A 64.1 separate administrative conference is required for each period 64.2 of suspension. 64.3 Sec. 2. Minnesota Statutes 1998, section 121A.43, is 64.4 amended to read: 64.5 121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 64.6 DISABILITY.] 64.7 When a pupil who has an individual education plan is 64.8 excluded or expelled under sections 121A.40 to 121A.56 for 64.9 misbehavior that is not a manifestation of the pupil's 64.10 disability, the district shall continue to provide special 64.11 education and related services after a period of suspension, if 64.12 suspension is imposed. The district shall initiate a review of 64.13 the pupil's individual education planwithin five school days of64.14 and conduct a review of the relationship between the pupil's 64.15 disability and the behavior subject to disciplinary action and 64.16 determine the appropriateness of the pupil's education plan 64.17 before commencing an expulsion,or exclusion, or a suspension. 64.18 Sec. 3. Minnesota Statutes 1998, section 122A.26, is 64.19 amended by adding a subdivision to read: 64.20 Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding 64.21 subdivision 2, a person who possesses a bachelor's or master's 64.22 degree in English as a second language, applied linguistics, 64.23 bilingual education, or who possesses a related degree as 64.24 approved by the commissioner of children, families, and 64.25 learning, shall be permitted to teach English as a second 64.26 language in an adult basic education program that receives 64.27 funding under section 124D.53. 64.28 Sec. 4. Minnesota Statutes 1998, section 122A.28, is 64.29 amended to read: 64.30 122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 64.31 LICENSURE REQUIREMENTS.] 64.32 Subdivision 1. [K-12 LICENSE TO TEACH DEAF AND 64.33 HARD-OF-HEARING STUDENTS.] The board of teaching must review and 64.34 determine appropriate licensure requirements for a candidate for 64.35 a license or an applicant for a continuing license to teach deaf 64.36 and hard-of-hearing students in prekindergarten through grade 12. 65.1 In addition to other requirements, a candidate must demonstrate 65.2 the minimum level of proficiency in American sign language as 65.3 determined by the board. 65.4 Subd. 2. [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 65.5 PROGRAMS.] (a) The board of teaching shall adopt a separate 65.6 licensure rule for a candidate for a license or an applicant for 65.7 a continuing license to teach in oral/aural deaf education 65.8 programs or to provide services, including itinerant oral/aural 65.9 deaf education services, to deaf and hard-of-hearing students in 65.10 prekindergarten through grade 12. 65.11 (b) The board shall design rule requirements for teaching 65.12 oral/aural deaf education in collaboration with representatives 65.13 of parents and educators of deaf and hard-of-hearing students, 65.14 post-secondary programs preparing teachers of deaf and 65.15 hard-of-hearing students, and the department of children, 65.16 families, and learning. 65.17 (c) Rule requirements for teaching oral/aural deaf 65.18 education shall reflect best practice research in oral/aural 65.19 deaf education. Advanced competencies in teaching deaf and 65.20 hard-of-hearing students through oral/aural modes shall be 65.21 included. 65.22 (d) Licensure requirements for teachers of oral/aural deaf 65.23 education must include minimum competency in American sign 65.24 language, but are not subject to the guidelines established in 65.25 Laws 1993, chapter 224, article 3, section 32, as amended by 65.26 Laws 1998, chapter 398, article 2, section 47. The signed 65.27 communication proficiency interview shall not be required for 65.28 teachers licensed to teach deaf and hard-of-hearing students 65.29 through oral/aural deaf education methods. 65.30 (e) Requirements for teachers or oral/aural deaf education 65.31 shall include appropriate continuing education requirements for 65.32 renewing this licensure. 65.33 Sec. 5. Minnesota Statutes 1998, section 123A.05, 65.34 subdivision 2, is amended to read: 65.35 Subd. 2. [RESERVE REVENUE.] Each district that is a member 65.36 of an area learning center must reserve revenue in an amount 66.1 equal to at least 90 percent of the district average general 66.2 education revenueless compensatoryper pupil unit minus an 66.3 amount equal to the product of the formula allowance according 66.4 to section 126C.10, subdivision 2, times .0485, calculated 66.5 without basic skills revenueunit, transportation sparsity 66.6 revenue, and the transportation portion of the transition 66.7 revenue adjustment, times the number of pupil units attending an 66.8 area learning center program under this section. The amount of 66.9 reserved revenue under this subdivision may only be spent on 66.10 program costs associated with the area learning center. 66.11 Compensatory revenue must be allocated according to section 66.12 126C.15, subdivision 2. 66.13 Sec. 6. Minnesota Statutes 1998, section 123A.05, 66.14 subdivision 3, is amended to read: 66.15 Subd. 3. [ACCESS TO SERVICES.] A center shall have access 66.16 to the district's regular education programs, special education 66.17 programs, technology facilities, and staff. It may contract 66.18 with individuals or post-secondary institutions. It shall seek 66.19 the involvement of community education programs, post-secondary 66.20 institutions, interagency collaboratives, culturally based 66.21 organizations, mutual assistance associations, and other 66.22 community resources, businesses, and other federal, state, and 66.23 local public agencies. 66.24 Sec. 7. Minnesota Statutes 1998, section 123A.06, 66.25 subdivision 1, is amended to read: 66.26 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 66.27 services of a center must focus on academic and learning skills, 66.28 applied learning opportunities, trade and vocational skills, 66.29 work-based learning opportunities, work experience, youth 66.30 service to the community,andtransition services, and English 66.31 language and literacy programs for children whose primary 66.32 language is a language other than English. Applied learning, 66.33 work-based learning, and service learning may best be developed 66.34 in collaboration with a local education and transitions 66.35 partnership, culturally based organizations, mutual assistance 66.36 associations, or other community resources. In addition to 67.1 offering programs, the center shall coordinate the use of other 67.2 available educational services, special education services, 67.3 social services, health services, and post-secondary 67.4 institutions in the community and services area. 67.5 (b) Consistent with the requirements of sections 121A.40 to 67.6 121A.56, a school district may provide an alternative education 67.7 program for a student who is within the compulsory attendance 67.8 age under section 120A.20, and who is involved in severe or 67.9 repeated disciplinary action. 67.10 Sec. 8. Minnesota Statutes 1998, section 123A.06, 67.11 subdivision 2, is amended to read: 67.12 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 67.13 programs for secondary pupils and adults. A center may also 67.14 provide programs and services for elementary and secondary 67.15 pupils who are not attending the center to assist them in being 67.16 successful in school. A center shall use research-based best 67.17 practices and offer bilingual education programs to students and 67.18 their parents whose primary language is a language other than 67.19 English. An individual education plan team may identify a 67.20 center as an appropriate placement to the extent a center can 67.21 provide the student with the appropriate special education 67.22 services described in the student's plan. Pupils eligible to be 67.23 served are those age five to adults 22 and older who qualify 67.24 under the graduation incentives program in section 124D.68, 67.25 subdivision 2, or those pupils who are eligible to receive 67.26 special education services under sections 125A.03 to 125A.24, 67.27 and 125A.65. 67.28 Sec. 9. Minnesota Statutes 1998, section 124D.081, 67.29 subdivision 3, is amended to read: 67.30 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 67.31 shall rank all school sites with kindergarten programs that do 67.32 not exclusively serve students under sections 125A.03 to 67.33 125A.24, and 125A.65. The ranking must be from highest to 67.34 lowest based on the site's free and reduced lunch count as a 67.35 percent of the fall enrollment using the preceding October 1 67.36 enrollment data. Once a school site is calculated to be 68.1 eligible, it remains eligible for the duration of the pilot 68.2 program, unless the site's ranking falls below the state average 68.3 for elementary schools. For each school site, the percentage 68.4 used to calculate the ranking must be the greater of (1) the 68.5 percent of the fall kindergarten enrollment receiving free and 68.6 reduced lunch, or (2) the percent of the total fall enrollment 68.7 receiving free and reduced lunch. The list of ranked sites must 68.8 be separated into the following geographic areas: Minneapolis 68.9 district, St. Paul district, suburban Twin Cities districts in 68.10 the seven-county metropolitan area, and school districts in 68.11 greater Minnesota. 68.12 (b) The commissioner shall establish a process and 68.13 timelines to qualify school sites for the next school year. 68.14 School sites must be qualified in each geographic area from the 68.15 list of ranked sites until the estimated revenue available for 68.16 this program has been allocated. The total estimated revenue 68.17 must be distributed to qualified school sites in each geographic 68.18 area as follows: 25 percent for Minneapolis sites, 25 percent 68.19 for St. Paul sites, 25 percent for suburban Twin Cities sites, 68.20 and 25 percent for greater Minnesota. 68.21 Sec. 10. Minnesota Statutes 1998, section 124D.081, 68.22 subdivision 8, is amended to read: 68.23 Subd. 8. [EXPIRATION.] This section applies for fiscal 68.24 years 1997, 1998,and1999, 2000, and 2001, and expires June 30, 68.2519992001. 68.26 Sec. 11. Minnesota Statutes 1998, section 124D.454, 68.27 subdivision 5, is amended to read: 68.28 Subd. 5. [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 68.29 REVENUE.] The state total school-to-work program-disabled 68.30 revenue for fiscal year19982000 equals$8,924,000$8,982,000. 68.31 The state total school-to-work program-disabled revenue for 68.32 fiscal year19992001 equals$8,976,000$8,967,000. The state 68.33 total school-to-work program-disabled revenue for later fiscal 68.34 years equals: 68.35 (1) the state total school-to-work program-disabled revenue 68.36 for the preceding fiscal year; times 69.1 (2) the program growth factor; times 69.2 (3) the ratio of the state total average daily membership 69.3 for the current fiscal year to the state total average daily 69.4 membership for the preceding fiscal year. 69.5 Sec. 12. Minnesota Statutes 1998, section 124D.52, is 69.6 amended by adding a subdivision to read: 69.7 Subd. 4. [ENGLISH AS A SECOND LANGUAGE PROGRAMS.] A person 69.8 may teach an English as a second language class conducted at a 69.9 worksite, if the person meets the requirements of section 69.10 122A.19, subdivision 1, clause (a), regardless of whether that 69.11 person holds a teacher's license. A person teaching English as 69.12 a second language for an approved adult basic education program 69.13 must possess a bachelor's or master's degree in English as a 69.14 second language, applied linguistics, bilingual education, or a 69.15 related degree as approved by the commissioner. 69.16 Sec. 13. Minnesota Statutes 1998, section 124D.65, 69.17 subdivision 4, is amended to read: 69.18 Subd. 4. [STATE TOTAL LEP REVENUE.] (a) The state total 69.19 limited English proficiency programs revenue for fiscal 69.20 year19982000 equals$14,629,000$27,454,000. The state total 69.21 limited English proficiency programs revenue for fiscal 69.22 year19992001 equals$16,092,000$31,752,000. 69.23 (b) The state total limited English proficiency programs 69.24 revenue for later fiscal years equals: 69.25 (1) the state total limited English proficiency programs 69.26 revenue for the preceding fiscal year; times 69.27 (2) the program growth factor under section 125A.76 69.28 subdivision 1; times 69.29 (3) the ratio of the state total number of pupils with 69.30 limited English proficiency for the current fiscal year to the 69.31 state total number of pupils with limited English proficiency 69.32 for the preceding fiscal year. 69.33 Sec. 14. Minnesota Statutes 1998, section 124D.70, is 69.34 amended to read: 69.35 124D.70 [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] 69.36 In addition to revenue received under sections 124D.68, 70.1 subdivisions 8 and 9, and 124D.69, subdivision 1, a district 70.2 shall receive additional revenue for homeless pupils who are 70.3 eligible to participate in the graduation incentives program 70.4 according to section 124D.68, subdivision 1, paragraph (a), 70.5 clause (9), equal to $100 per pupil unit. The additional 70.6 revenue received must be based on the district's number of 70.7 homeless students enrolled on October 1. The revenue received 70.8 under this section shall be used for expanding education 70.9 services to include preschool, after-school, or summer school 70.10 programs to provide transition and follow-up services to 70.11 homeless pupils who are placed or mainstreamed in a district 70.12 school, or to provide parent education and support services. 70.13 The additional revenue shall be paid to the public or nonprofit 70.14 school program providing services to homeless pupils. A student 70.15 shall not be considered homeless under this section if the 70.16 student was displaced from home as a result of a natural 70.17 disaster. 70.18 Sec. 15. [124D.701] [CARE AND TREATMENT INSTRUCTIONAL 70.19 AID.] 70.20 The state must pay each district up to 50 percent of the 70.21 nonreimbursed instructional expenses incurred when a nondisabled 70.22 child has been placed in a care and treatment facility, or 70.23 detention facility, according to section 125A.51. In order to 70.24 receive reimbursement according to this section, the facility 70.25 must provide an education program, which has been approved by 70.26 the commissioner according to section 125A.515. 70.27 In a form and manner determined by the commissioner, the 70.28 district may bill the state no more than 50 percent of the 70.29 allowable expenses incurred in providing the services minus the 70.30 general education revenue of the district for the child and any 70.31 other aid earned on behalf of the child. In accordance with 70.32 section 125A.80, the commissioner shall determine allowable 70.33 expenses and maximum reimbursable rates for each type of service. 70.34 (Effective Date: Section 15 (124D.701) is effective July 70.35 1, 2000.) 70.36 Sec. 16. Minnesota Statutes 1998, section 125A.023, is 71.1 amended to read: 71.2 125A.023 [COORDINATED INTERAGENCY SERVICES.] 71.3 Subdivision 1. [CITATION.] This section and section 71.4 125A.027 shall be cited as the "Interagency Services for 71.5 Children with Disabilities Act." 71.6 Subd. 2. [PURPOSE.] It is the policy of the state to 71.7 develop and implement a coordinated, multidisciplinary, 71.8 interagency intervention service system for children ages three 71.9 to2221 with disabilities. 71.10 Subd. 3. [DEFINITIONS.] For purposes of this section and 71.11 section 125A.027, the following terms have the meanings given 71.12 them: 71.13 (a) "Health plan" means: 71.14 (1) a health plan under section 62Q.01, subdivision 3; 71.15 (2) a county-based purchasing plan under section 256B.692; 71.16 (3) a self-insured health plan established by a local 71.17 government under section 471.617; or 71.18 (4) self-insured health coverage provided by the state to 71.19 its employees or retirees. 71.20 (b) For purposes of this section, "health plan company" 71.21 means an entity that issues a health plan as defined in 71.22 paragraph (a). 71.23 (c) "Individual interagency intervention plan" means a 71.24 standardized written plan describing those programs or services 71.25 and the accompanying funding sources available to eligible 71.26 children with disabilities. 71.27 (d) "Interagency intervention service system" means a 71.28 system that coordinates services and programs required in state 71.29 and federal law to meet the needs of eligible children with 71.30 disabilities ages three to2221, including: 71.31 (1) services provided under the following programs or 71.32 initiatives administered by state or local agencies: 71.33 (i) the maternal and child health program under title V of 71.34 the Social Security Act, United States Code, title 42, sections 71.35 701 to 709; 71.36 (ii) the Individuals with Disabilities Education Act under 72.1 United States Code, title 20, chapter 33, subchapter II, 72.2 sections 1411 to 1420; 72.3 (iii) medical assistance under the Social Security Act, 72.4 United States Code, title 42, chapter 7, subchapter XIX, section 72.5 1396, et seq.; 72.6 (iv) the Developmental Disabilities Assistance and Bill of 72.7 Rights Act, United States Code, title 42, chapter 75, subchapter 72.8 II, sections 6021 to 6030, Part B; 72.9 (v) the Head Start Act, United States Code, title 42, 72.10 chapter 105, subchapter II, sections 9831 to 9852; 72.11 (vi) rehabilitation services provided under chapter 268A; 72.12 (vii) Juvenile Court Act services provided under sections 72.13 260.011 to 260.301; 72.14 (viii) the children's mental health collaboratives under 72.15 section 245.493; 72.16 (ix) the family service collaboratives under section 72.17 124D.23; 72.18 (x) the family community support plan under section 72.19 245.4881, subdivision 4; 72.20 (xi) the MinnesotaCare program under chapter 256L; 72.21 (xii) the community health services grants under chapter 72.22 145; 72.23 (xiii) the Community Social Services Act funding under the 72.24 Social Security Act, United States Code, title 42, sections 1397 72.25 to 1397f; and 72.26 (xiv) the community interagency transition committees under 72.27 section 125A.22; 72.28 (2) services provided under a health plan in conformity 72.29 with an individual family service plan or an individual 72.30 education plan; and 72.31 (3) additional appropriate services that local agencies and 72.32 counties provide on an individual need basis upon determining 72.33 eligibility and receiving a request from the interagency early 72.34 intervention committee and the child's parent. 72.35 (e) "Children with disabilities" has the meaning given in 72.36 section 125A.02. 73.1 (f) A "standardized written plan" means those individual 73.2 services or programs available through the interagency 73.3 intervention service system to an eligible child other than the 73.4 services or programs described in the child's individual 73.5 education plan or the child's individual family service plan. 73.6 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 73.7 shall convene an 18-member interagency committee to develop and 73.8 implement a coordinated, multidisciplinary, interagency 73.9 intervention service system for children ages three to2221 73.10 with disabilities. The commissioners of commerce, children, 73.11 families, and learning, health, human rights, human services, 73.12 economic security, and corrections shall each appoint two 73.13 committee members from their departments; the association of 73.14 Minnesota counties shall appoint two county representatives, one 73.15 of whom must be an elected official, as committee members; and 73.16 the Minnesota school boards association and the school nurse 73.17 association of Minnesota shall each appoint one committee 73.18 member. The committee shall select a chair from among its 73.19 members. 73.20 (b) The committee shall: 73.21 (1) identify and assist in removing state and federal 73.22 barriers to local coordination of services provided to children 73.23 with disabilities; 73.24 (2) identify adequate, equitable, and flexible funding 73.25 sources to streamline these services; 73.26 (3) develop guidelines for implementing policies that 73.27 ensure a comprehensive and coordinated system of all state and 73.28 local agency services, including multidisciplinary assessment 73.29 practices for children with disabilities ages three to2221; 73.30 (4) develop, consistent with federal law, a standardized 73.31 written plan for providing services to a child with 73.32 disabilities; 73.33 (5) identify how current systems for dispute resolution can 73.34 be coordinated and develop guidelines for that coordination; 73.35 (6) develop an evaluation process to measure the success of 73.36 state and local interagency efforts in improving the quality and 74.1 coordination of services to children with disabilities ages 74.2 three to2221; 74.3 (7) develop guidelines to assist the governing boards of 74.4 the interagency early intervention committees in carrying out 74.5 the duties assigned in section 125A.027, subdivision 1, 74.6 paragraph (b); and 74.7 (8) carry out other duties necessary to develop and 74.8 implement within communities a coordinated, multidisciplinary, 74.9 interagency intervention service system for children with 74.10 disabilities. 74.11 (c) The committee shall consult on an ongoing basis with 74.12 the state education advisory committee for special education and 74.13 the governor's interagency coordinating council in carrying out 74.14 its duties under this section, including assisting the governing 74.15 boards of the interagency early intervention committees. 74.16 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 74.17 commissioner of children, families, and learning, based on 74.18 recommendations from the state interagency committee, shall 74.19 issue a request for proposals by January 1, 1999, for grants to 74.20 the governing boards of interagency intervention committees 74.21 under section 125A.027 or a combination of one or more counties 74.22 and school districts to establish five voluntary interagency 74.23 intervention demonstration projects. One grant shall be used to 74.24 implement a coordinated service system for all eligible children 74.25 with disabilities up to age five who received services under 74.26 sections 125A.26 to 125A.48. One grant shall be used to 74.27 implement a coordinated service system for a population of 74.28 minority children with disabilities from ages 12 to2221, who 74.29 may have behavioral problems and are in need of transitional 74.30 services. Each project must be operational by July 1, 1999. 74.31 The governing boards of the interagency early intervention 74.32 committees and the counties and school districts receiving 74.33 project grants must develop efficient ways to coordinate 74.34 services and funding for children with disabilities ages three 74.35 to2221, consistent with the requirements of this section and 74.36 section 125A.027 and the guidelines developed by the state 75.1 interagency committee under this section. 75.2 (b) The state interagency committee shall evaluate the 75.3 demonstration projects and provide the evaluation results to 75.4 interagency early intervention committees. 75.5 Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in this section 75.6 and section 125A.027 relieves a health plan company, third party 75.7 administrator or other third-party payer of an obligation to pay 75.8 for, or changes the validity of an obligation to pay for, 75.9 services provided to children with disabilities ages three to2275.10 21 and their families. 75.11 Subd. 7. [AGENCY OBLIGATION.] Nothing in this section and 75.12 section 125A.027 removes the obligation of the state, counties, 75.13 local school districts, a regional agency, or a local agency or 75.14 organization to comply with any federal or state law that 75.15 mandates responsibility for finding, assessing, delivering, 75.16 assuring, or paying for education or related services for 75.17 children with disabilities and their families. 75.18 (Effective date: Section 16 (125A.023) is effective July 75.19 1, 2000.) 75.20 Sec. 17. Minnesota Statutes 1998, section 125A.027, is 75.21 amended to read: 75.22 125A.027 [INTERAGENCY EARLY INTERVENTION COMMITTEE 75.23 RESPONSIBILITIES.] 75.24 Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing 75.25 boards of the interagency early intervention committees are 75.26 responsible for developing and implementing interagency policies 75.27 and procedures to coordinate services at the local level for 75.28 children with disabilities ages three to2221 under guidelines 75.29 established by the state interagency committee under section 75.30 125A.023, subdivision 4. Consistent with the requirements in 75.31 this section and section 125A.023, the governing boards of the 75.32 interagency early intervention committees shall organize as a 75.33 joint powers board under section 471.59 or enter into an 75.34 interagency agreement that establishes a governance structure. 75.35 (b) The governing board of each interagency early 75.36 intervention committee as defined in section 125A.30, paragraph 76.1 (a), which may include a juvenile justice professional, shall: 76.2 (1) identify and assist in removing state and federal 76.3 barriers to local coordination of services provided to children 76.4 with disabilities; 76.5 (2) identify adequate, equitable, and flexible use of 76.6 funding by local agencies for these services; 76.7 (3) implement policies that ensure a comprehensive and 76.8 coordinated system of all state and local agency services, 76.9 including multidisciplinary assessment practices, for children 76.10 with disabilities ages three to2221; 76.11 (4) use a standardized written plan for providing services 76.12 to a child with disabilities developed under section 125A.023; 76.13 (5) access the coordinated dispute resolution system and 76.14 incorporate the guidelines for coordinating services at the 76.15 local level, consistent with section 125A.023; 76.16 (6) use the evaluation process to measure the success of 76.17 the local interagency effort in improving the quality and 76.18 coordination of services to children with disabilities ages 76.19 three to2221 consistent with section 125A.023; 76.20 (7) develop a transitional plan for children moving from 76.21 the interagency early childhood intervention system under 76.22 sections 125A.259 to 125A.48 into the interagency intervention 76.23 service system under this section; 76.24 (8) coordinate services and facilitate payment for services 76.25 from public and private institutions, agencies, and health plan 76.26 companies; and 76.27 (9) share needed information consistent with state and 76.28 federal data practices requirements. 76.29 Subd. 2. [APPROPRIATE AND NECESSARY SERVICES.] (a) 76.30 Parents, physicians, other health care professionals including 76.31 school nurses, and education and human services providers 76.32 jointly must determine appropriate and necessary services for 76.33 eligible children with disabilities ages three to2221. The 76.34 services provided to the child under this section must conform 76.35 with the child's standardized written plan. The governing board 76.36 of an interagency early intervention committee must provide 77.1 those services contained in a child's individual education plan 77.2 and those services for which a legal obligation exists. 77.3 (b) Nothing in this section or section 125A.023 increases 77.4 or decreases the obligation of the state, county, regional 77.5 agency, local school district, or local agency or organization 77.6 to pay for education, health care, or social services. 77.7 (c) A health plan may not exclude any medically necessary 77.8 covered service solely because the service is or could be 77.9 identified in a child's individual family service plan, 77.10 individual education plan, a plan established under section 504 77.11 of the federal Rehabilitation Act of 1973, or a student's 77.12 individual health plan. This paragraph reaffirms the obligation 77.13 of a health plan company to provide or pay for certain medically 77.14 necessary covered services, and encourages a health plan company 77.15 to coordinate this care with any other providers of similar 77.16 services. Also, a health plan company may not exclude from a 77.17 health plan any medically necessary covered service such as an 77.18 assessment or physical examination solely because the resulting 77.19 information may be used for an individual education plan or a 77.20 standardized written plan. 77.21 Subd. 3. [IMPLEMENTATION TIMELINE.] By July 1, 2000, all 77.22 governing boards of interagency early intervention committees 77.23 statewide must implement a coordinated service system for 77.24 children up to age five with disabilities consistent with the 77.25 requirements of this section and section 125A.023 and the 77.26 evaluation results from the demonstration projects under section 77.27 125A.023, subdivision 5. Children with disabilities up to the 77.28 age of2221 shall be eligible for coordinated services and 77.29 their eligibility to receive such services under this section 77.30 shall be phased in over a four-year period as follows: 77.31 (1) July 1, 2001, children up to age nine become eligible; 77.32 (2) July 1, 2002, children up to age 14 become eligible; 77.33 and 77.34 (3) July 1, 2003, children up to age2221 become eligible. 77.35 (Effective date: Section 17 (125A.027) is effective July 77.36 1, 2001.) 78.1 Sec. 18. Minnesota Statutes 1998, section 125A.03, is 78.2 amended to read: 78.3 125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 78.4 DISABILITY.] 78.5 (a) As defined in paragraph (b),to the extent required in78.6federal law as of July 1, 1999,every district must provide 78.7 special instruction and services, either within the district or 78.8 in another district, for children with a disability who are 78.9 residents of the district and who are disabled as set forth in 78.10 section 125A.02. 78.11 (b) Notwithstanding any age limits in laws to the contrary, 78.12 special instruction and services must be provided from birth 78.13 untilSeptemberJuly 1 after the child with a disability becomes 78.142221 years old but shall not extend beyond secondary school or 78.15 its equivalent, except as provided in section 124D.68, 78.16 subdivision 2. Local health, education, and social service 78.17 agencies must refer children under age five who are known to 78.18 need or suspected of needing special instruction and services to 78.19 the school district. Districts with less than the minimum 78.20 number of eligible children with a disability as determined by 78.21 the state board must cooperate with other districts to maintain 78.22 a full range of programs for education and services for children 78.23 with a disability. This section does not alter the compulsory 78.24 attendance requirements of section 120A.22. 78.25 (Effective date: Section 18, paragraph (b) (125A.03) is 78.26 effective July 1, 2002.) 78.27 Sec. 19. Minnesota Statutes 1998, section 125A.07, is 78.28 amended to read: 78.29 125A.07 [RULES OF STATE BOARD.] 78.30 (a) As defined in this paragraph,but not to exceed the78.31extent required by federal law as of July 1, 1999,the state 78.32 board must adopt rules relative to qualifications of essential 78.33 personnel, courses of study, methods of instruction, pupil 78.34 eligibility, size of classes, rooms, equipment, supervision, 78.35 parent consultation, and other necessary rules for instruction 78.36 of children with a disability. These rules must provide 79.1 standards and procedures appropriate for the implementation of 79.2 and within the limitations of sections 125A.08 and 125A.09. 79.3 These rules must also provide standards for the discipline, 79.4 control, management, and protection of children with a 79.5 disability. The state board must not adopt rules for pupils 79.6 served primarily in the regular classroom establishing either 79.7 case loads or the maximum number of pupils that may be assigned 79.8 to special education teachers. The state board, in consultation 79.9 with the departments of health and human services, must adopt 79.10 permanent rules for instruction and services for children under 79.11 age five and their families. These rules are binding on state 79.12 and local education, health, and human services agencies. The 79.13 state board must adopt rules to determine eligibility for 79.14 special education services. The rules must include procedures 79.15 and standards by which to grant variances for experimental 79.16 eligibility criteria. The state board must, according to 79.17 section 14.05, subdivision 4, notify a district applying for a 79.18 variance from the rules within 45 calendar days of receiving the 79.19 request whether the request for the variance has been granted or 79.20 denied. If a request is denied, the board must specify the 79.21 program standards used to evaluate the request and the reasons 79.22 for denying the request. 79.23 (b) As provided in this paragraph,but not to exceed the79.24extent required by federal law as of July 1, 1999,the state's 79.25 regulatory scheme should support schools by assuring that all 79.26 state special education rules adopted by the state board result 79.27 in one or more of the following outcomes: 79.28 (1) increased time available to teachers and, where 79.29 appropriate, to support staff including school nurses for 79.30 educating students through direct and indirect instruction; 79.31 (2) consistent and uniform access to effective education 79.32 programs for students with disabilities throughout the state; 79.33 (3) reduced inequalities and conflict, appropriate due 79.34 process hearing procedures and reduced court actions related to 79.35 the delivery of special education instruction and services for 79.36 students with disabilities; 80.1 (4) clear expectations for service providers and for 80.2 students with disabilities; 80.3 (5) increased accountability for all individuals and 80.4 agencies that provide instruction and other services to students 80.5 with disabilities; 80.6 (6) greater focus for the state and local resources 80.7 dedicated to educating students with disabilities; and 80.8 (7) clearer standards for evaluating the effectiveness of 80.9 education and support services for students with disabilities. 80.10 Sec. 20. Minnesota Statutes 1998, section 125A.08, is 80.11 amended to read: 80.12 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 80.13 (a) As defined in this section,to the extent required by80.14federal law as of July 1, 1999,every district must ensure the 80.15 following: 80.16 (1) all students with disabilities are provided the special 80.17 instruction and services which are appropriate to their needs. 80.18 Where the individual education plan team has determined 80.19 appropriate goals and objectives based on the student's needs, 80.20 including the extent to which the student can be included in the 80.21 least restrictive environment, and where there are essentially 80.22 equivalent and effective instruction, related services, or 80.23 assistive technology devices available to meet the student's 80.24 needs, cost to the district may be among the factors considered 80.25 by the team in choosing how to provide the appropriate services, 80.26 instruction, or devices that are to be made part of the 80.27 student's individual education plan. The student's needs and 80.28 the special education instruction and services to be provided 80.29 must be agreed upon through the development of an individual 80.30 education plan. The plan must address the student's need to 80.31 develop skills to live and work as independently as possible 80.32 within the community. By grade 9 or age 14, the plan must 80.33 address the student's needs for transition from secondary 80.34 services to post-secondary education and training, employment, 80.35 community participation, recreation, and leisure and home 80.36 living. In developing the plan, districts must inform parents 81.1 of the full range of transitional goals and related services 81.2 that should be considered. The plan must include a statement of 81.3 the needed transition services, including a statement of the 81.4 interagency responsibilities or linkages or both before 81.5 secondary services are concluded; 81.6 (2) children with a disability under age five and their 81.7 families are provided special instruction and services 81.8 appropriate to the child's level of functioning and needs; 81.9 (3) children with a disability and their parents or 81.10 guardians are guaranteed procedural safeguards and the right to 81.11 participate in decisions involving identification, assessment 81.12 including assistive technology assessment, and educational 81.13 placement of children with a disability; 81.14 (4) eligibility and needs of children with a disability are 81.15 determined by an initial assessment or reassessment, which may 81.16 be completed using existing data under United States Code, title 81.17 20, section 33, et seq.; 81.18 (5) to the maximum extent appropriate, children with a 81.19 disability, including those in public or private institutions or 81.20 other care facilities, are educated with children who are not 81.21 disabled, and that special classes, separate schooling, or other 81.22 removal of children with a disability from the regular 81.23 educational environment occurs only when and to the extent that 81.24 the nature or severity of the disability is such that education 81.25 in regular classes with the use of supplementary services cannot 81.26 be achieved satisfactorily; 81.27 (6) in accordance with recognized professional standards, 81.28 testing and evaluation materials, and procedures used for the 81.29 purposes of classification and placement of children with a 81.30 disability are selected and administered so as not to be 81.31 racially or culturally discriminatory; and 81.32 (7) the rights of the child are protected when the parents 81.33 or guardians are not known or not available, or the child is a 81.34 ward of the state. 81.35 (b) For paraprofessionals employed to work in programs for 81.36 students with disabilities, the school board in each district 82.1 shall ensure that: 82.2 (1) before or immediately upon employment, each 82.3 paraprofessional develops sufficient knowledge and skills in 82.4 emergency procedures, building orientation, roles and 82.5 responsibilities, confidentiality, vulnerability, and 82.6 reportability, among other things, to begin meeting the needs of 82.7 the students with whom the paraprofessional works; 82.8 (2) annual training opportunities are available to enable 82.9 the paraprofessional to continue to further develop the 82.10 knowledge and skills that are specific to the students with whom 82.11 the paraprofessional works, including understanding 82.12 disabilities, following lesson plans, and implementing follow-up 82.13 instructional procedures and activities; and 82.14 (3) a districtwide process obligates each paraprofessional 82.15 to work under the ongoing direction of a licensed teacher and, 82.16 where appropriate and possible, the supervision of a school 82.17 nurse. 82.18 Sec. 21. Minnesota Statutes 1998, section 125A.09, 82.19 subdivision 1, is amended to read: 82.20 Subdivision 1. [DISTRICT OBLIGATION.] As defined in this 82.21 section,but not to exceed the extent required by federal law as82.22of July 1, 1999,every district must use the following 82.23 procedures for decisions involving identification, assessment, 82.24 and educational placement of children with a disability. 82.25 Sec. 22. Minnesota Statutes 1998, section 125A.09, 82.26 subdivision 4, is amended to read: 82.27 Subd. 4. [DISPUTE RESOLUTION.] Parents and guardians must 82.28 have an opportunity to meet with appropriate district staff in 82.29 at least one conciliation conference, mediation, or other method 82.30 of alternative dispute resolution that the parties agree to, if 82.31 they object to any proposal of which they are notified under 82.32 subdivision 1. The state intends to encourage parties to 82.33 resolve disputes through mediation or other form of alternative 82.34 dispute resolution. A school district and a parent or guardian 82.35 must participate in mediation using mediation services 82.36 acceptable to both parties, unless a party objects to the 83.1 mediation. Mediation shall remain available to the parties 83.2 until a party objects to the mediation, or the mediator 83.3 determines that further efforts to mediate a dispute are not 83.4 warranted. All mediation is subject to the confidentiality 83.5 requirements under rule 114.08 of the general rules of practice 83.6 for the district courts. Alternative dispute resolution must 83.7 not be used to deny or delay a parent or guardian's right to a 83.8 due process hearing. If the parent or guardian refuses efforts 83.9 by the district to conciliate the dispute with the district, the 83.10 requirement of an opportunity for conciliation or other 83.11 alternative dispute resolution must be deemed to be satisfied. 83.12 Notwithstanding other law, in any proceeding following a 83.13 conciliation conference, the district must not offer a 83.14 conciliation conference memorandum into evidence, except for any 83.15 portions that describe the district's final proposed offer of 83.16 service. Otherwise, with respect to forms of dispute 83.17 resolution, mediation, or conciliation, Minnesota Rule of 83.18 Evidence 408 applies.The department may reimburse the83.19districts or directly pay the costs of lay advocates, not to83.20exceed $150 per dispute, used in conjunction with alternative83.21dispute resolution.83.22 Sec. 23. Minnesota Statutes 1998, section 125A.09, 83.23 subdivision 6, is amended to read: 83.24 Subd. 6. [IMPARTIAL DUE PROCESS HEARING.] Parents, 83.25 guardians, and the district must have an opportunity to obtain 83.26 an impartial due process hearing initiated and conducted by and 83.27 in the district responsible for assuring that an appropriate 83.28 program is provided in accordance with state board rules, if the 83.29 parent or guardian continues to object to: 83.30 (1) a proposed formal educational assessment or proposed 83.31 denial of a formal educational assessment of their child; 83.32 (2) the proposed placement of their child in, or transfer 83.33 of their child to a special education program; 83.34 (3) the proposed denial of placement of their child in a 83.35 special education program or the transfer of their child from a 83.36 special education program; 84.1 (4) the proposed provision or addition of special education 84.2 services for their child; or 84.3 (5) the proposed denial or removal of special education 84.4 services for their child. 84.5 A hearing officer may limit an impartial due process 84.6 hearing to an amount of time sufficient for each party to 84.7 present its case. The party requesting the hearing shall plead 84.8 with specificity as to what issues are in dispute and all issues 84.9 not pleaded with specificity are deemed waived. Parties must 84.10 limit evidence to the issues specifically pleaded. A hearing 84.11 officer, at the officer's discretion, may exclude cumulative 84.12 evidence or may encourage parties to present only essential 84.13 witnesses. 84.14 Within five business days after the request for a hearing, 84.15 or as directed by the hearing officer, the objecting party must 84.16 provide the other party with a brief written statement of 84.17 particulars of the objection, the reasons for the objection, and 84.18 the specific remedies sought. The other party shall provide the 84.19 objecting party with a written response to the statement of 84.20 objections within five business days of receipt of the statement. 84.21 The hearing must take place before an impartial hearing 84.22 officer mutually agreed to by the school board and the parent or 84.23 guardian. Withinfourthree business days of the receipt of the 84.24 request for the hearing, if the parties have not agreed on the 84.25 hearing officer, the board must request the commissioner to 84.26 appoint a hearing officer from a list maintained for that 84.27 purpose. If the parties have not agreed upon a hearing officer, 84.28 and the board has not requested that a hearing officer be 84.29 appointed by the commissioner within four business days after 84.30 the receipt of the request, the commissioner shall appoint a 84.31 hearing officer upon the request of either party. A retired 84.32 judge, retired court referee, or retired federal magistrate 84.33 judge who is otherwise qualified under this section and wishes 84.34 to be a hearing officer may be put on the list. The board must 84.35 include with the request the name of the person requesting the 84.36 hearing, the name of the student, the attorneys involved, if 85.1 any, and the date the hearing request was received. The hearing 85.2 officer must not be a board member or employee of the district 85.3 where the child resides or of the child's district of residence, 85.4 an employee of any other public agency involved in the education 85.5 or care of the child, or any person with a personal or 85.6 professional interest that would conflict with the person's 85.7 objectivity at the hearing. A person who otherwise qualifies as 85.8 a hearing officer is not an employee of the district solely 85.9 because the person is paid by the district to serve as a hearing 85.10 officer. Any party to a hearing, except an expedited hearing 85.11 under federal law, may make and serve upon the opposing party 85.12 and the commissioner a notice to remove a hearing officer 85.13 appointed by the commissioner. The notice shall be served and 85.14 filed within two business days after the party receives notice 85.15 of the appointment of the hearing officer by the commissioner. 85.16 No such notice may be filed by a party against a hearing 85.17 officer who has presided at a motion or any other proceeding of 85.18 which the party had notice. A hearing officer who has presided 85.19 at a motion or other proceeding may not be removed except upon 85.20 an affirmative showing of prejudice on the part of the hearing 85.21 officer. 85.22 After the party has once disqualified a hearing officer as 85.23 a matter of right, that party may disqualify the substitute 85.24 hearing officer only by making an affirmative showing of 85.25 prejudice or bias to the commissioner, or to the chief 85.26 administrative law judge if the hearing officer is an 85.27 administrative law judge. 85.28 Upon the filing of a notice to remove or if a party makes 85.29 an affirmative showing of prejudice against a substitute hearing 85.30 officer, the commissioner shall assign any other hearing officer 85.31 to hear the matter. 85.32 If the hearing officer requests an independent educational 85.33 assessment of a child, the cost of the assessment must be at 85.34 district expense. The proceedings must be recorded and 85.35 preserved, at the expense of the school district, pending 85.36 ultimate disposition of the action. 86.1 Sec. 24. Minnesota Statutes 1998, section 125A.10, is 86.2 amended to read: 86.3 125A.10 [COORDINATING INTERAGENCY SERVICES.] 86.4 If at the time of initial referral for an educational 86.5 assessment, or a reassessment, the district determines that a 86.6 child with disabilities who is age 3 through 21 may be eligible 86.7 for interagency services, the district may request that the 86.8 county of residence provide a representative to the initial 86.9 assessment or reassessment team meeting or the first individual 86.10 education plan team meeting following the assessment or 86.11 reassessment. The district may request to have a county 86.12 representative attend other individual education plan team 86.13 meetings when it is necessary to facilitate coordination between 86.14 district and county provided services. Upon request from a 86.15 district, the resident county shall provide a representative to 86.16 assist the individual education plan team in determining the 86.17 child's eligibility for existing health, mental health, or other 86.18 support services administered or provided by the county. The 86.19 individual education plan team and the county representative 86.20 must develop an interagency plan of care for an eligible child 86.21 and the child's family to coordinate services required under the 86.22 child's individual education plan with county services. The 86.23 interagency plan of care must include appropriate family 86.24 information with the consent of the family, a description of how 86.25 services will be coordinated between the district and county, a 86.26 description of service coordinator responsibilities and 86.27 services, and a description of activities for obtaining 86.28 third-party payment for eligible services, including medical 86.29 assistance payments. Any state, county, or city government 86.30 agency responsible for providing services or resources to 86.31 students with disabilities under this section is subject to the 86.32 same dispute resolution systems as local school districts, and 86.33 all such agencies must comply with corrective action 86.34 requirements that ensue from these systems. 86.35 Sec. 25. Minnesota Statutes 1998, section 125A.15, is 86.36 amended to read: 87.1 125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 87.2 The responsibility for special instruction and services for 87.3 a child with a disability temporarily placed in another district 87.4 for care and treatment shall be determined in the following 87.5 manner: 87.6 (a) The district of residence of a child shall be the 87.7 district in which the child's parent resides, if living, or the 87.8 child's guardian, or the district designated by the commissioner 87.9 if neither parent nor guardian is living within the state. 87.10 (b) When a child is temporarily placed for care and 87.11 treatment in a day program located in another district and the 87.12 child continues to live within the district of residence during 87.13 the care and treatment, the district of residence is responsible 87.14 for providing transportation to and from the care and treatment 87.15 facility and an appropriate educational program for the 87.16 child. Transportation shall only be provided by the district 87.17 during regular operating hours of the district. The district 87.18 may provide the educational program at a school within the 87.19 district of residence, at the child's residence, or in the 87.20 district in which the day treatment center is located by paying 87.21 tuition to that district. 87.22 (c) When a child is temporarily placed in a residential 87.23 program for care and treatment, the nonresident district in 87.24 which the child is placed is responsible for providing an 87.25 appropriate educational program for the child and necessary 87.26 transportation while the child is attending the educational 87.27 program; and must bill the district of the child's residence for 87.28 the actual cost of providing the program, as outlined in section 87.29 125A.11. However, the board, lodging, and treatment costs 87.30 incurred in behalf of a child with a disability placed outside 87.31 of the school district of residence by the commissioner of human 87.32 services or the commissioner of corrections or their agents, for 87.33 reasons other than providing for the child's special educational 87.34 needs must not become the responsibility of either the district 87.35 providing the instruction or the district of the child's 87.36 residence. For the purposes of this section, the state 88.1 correctional facilities operated on a fee-for-service basis are 88.2 considered to be residential programs for care and treatment. 88.3 (d) The district of residence shall pay tuition and other 88.4 program costs, not including transportation costs, to the 88.5 district providing the instruction and services. The district 88.6 of residence may claim general education aid for the child as 88.7 provided by law. Transportation costs must be paid by the 88.8 district responsible for providing the transportation and the 88.9 state must pay transportation aid to that district. 88.10 Sec. 26. [125A.155] [SPECIAL EDUCATION RECIPROCITY; 88.11 COMMISSIONER DUTIES.] 88.12 The commissioner of children, families, and learning must 88.13 develop a special education reciprocity agreement form. The 88.14 reciprocity form must specify the procedures used to calculate 88.15 special education tuition charges for both Minnesota students 88.16 that are served in other states and for out-of-state students 88.17 who are served in Minnesota. The commissioner shall attempt to 88.18 enter into reciprocity agreements with any state that sends 88.19 students to Minnesota and any state that provides services to 88.20 Minnesota students. 88.21 Sec. 27. Minnesota Statutes 1998, section 125A.18, is 88.22 amended to read: 88.23 125A.18 [SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.] 88.24 No resident of a district who is eligible for special 88.25 instruction and services under this section may be denied 88.26 instruction and service on a shared time basis consistent with 88.27 section 126C.19, subdivision 4, because of attending a nonpublic 88.28 school defined in section 123B.41, subdivision 9. If a resident 88.29 pupil with a disability attends a nonpublic school located 88.30 within the district of residence, the district must provide 88.31 necessary transportation for that pupil within the district 88.32 between the nonpublic school and the educational facility where 88.33 special instruction and services are provided on a shared time 88.34 basis. If a resident pupil with a disability attends a 88.35 nonpublic school located in another district and if no agreement 88.36 exists under section 126C.19, subdivision 1 or 2, for providing 89.1 special instruction and services on a shared time basis to that 89.2 pupil by the district of attendance and where the special 89.3 instruction and services are provided within the district of 89.4 residence, the district of residence must provide necessary 89.5 transportation for that pupil between the boundary of the 89.6 district of residence and the educational facility. The 89.7 district of residence may provide necessary transportation for 89.8 that pupil between its boundary and the nonpublic school 89.9 attended, but the nonpublic school must pay the cost of 89.10 transportation provided outside the district boundary. 89.11 Parties serving students on a shared time basis have access 89.12 to due process hearing system described under United States 89.13 Code, title 20, and the complaint system under Code of Federal 89.14 Regulations, title 34, section 300.660-662. In the event it is 89.15 determined under these systems that the nonpublic school or 89.16 staff impeded the public school district's provision of a free 89.17 appropriate education, the commissioner may withhold public 89.18 funds available to the nonpublic school proportionally 89.19 applicable to that student under section 123B.42. 89.20 Sec. 28. Minnesota Statutes 1998, section 125A.21, 89.21 subdivision 2, is amended to read: 89.22 Subd. 2. [THIRD PARTY REIMBURSEMENT.] Beginning July 89.23 1,19992000, districts shall seek reimbursement from insurers 89.24 and similar third parties for the cost of services provided by 89.25 the district whenever the services provided by the district are 89.26 otherwise covered by the child's health coverage. Districts 89.27 shall request, but may not require, the child's family to 89.28 provide information about the child's health coverage when a 89.29 child with a disability begins to receive services from the 89.30 district of a type that may be reimbursable, and shall request, 89.31 but may not require, updated information after that as needed. 89.32 Districts shall request, but may not require, the child's parent 89.33 or legal representative to sign a consent form, permitting the 89.34 school district to apply for and receive reimbursement directly 89.35 from the insurer or other similar third party, to the extent 89.36 permitted by the insurer or other third party and subject to 90.1 their networking credentialing, prior authorization, and 90.2 determination of medical necessity criteria. 90.3 Sec. 29. Minnesota Statutes 1998, section 125A.24, is 90.4 amended to read: 90.5 125A.24 [PARENT ADVISORYCOMMITTEESCOUNCILS.] 90.6Provisions of Minnesota Rules, part 3525.1100, regarding90.7parent advisory committees apply to local boards or cooperative90.8boards carrying out the provisions of this section.In order to 90.9 increase the involvement of parents of children with 90.10 disabilities in district policy-making and decision-making, 90.11 school districts must have a special education advisory council 90.12 that is incorporated into the district's special education 90.13 system plan. 90.14 (1) This advisory council may be established either for 90.15 individual districts or in cooperation with other districts who 90.16 are members of the same special education cooperative. 90.17 (2) A district may set up this council as a subgroup of an 90.18 existing board, council, or committee. 90.19 (3) At least half of the designated council members must be 90.20 parents of students with a disability. The number of members, 90.21 frequency of meetings, and operational procedures are to be 90.22 locally determined. 90.23 Sec. 30. Minnesota Statutes 1998, section 125A.30, is 90.24 amended to read: 90.25 125A.30 [INTERAGENCY EARLY INTERVENTION COMMITTEES.] 90.26 (a) A school district, group of districts, or special 90.27 education cooperative, in cooperation with the health and human 90.28 service agencies located in the county or counties in which the 90.29 district or cooperative is located, must establish an 90.30 interagency early intervention committee for children with 90.31 disabilities under age five and their families under this 90.32 section, and for children with disabilities ages three to 22 90.33 consistent with the requirements under sections 125A.023 and 90.34 125A.027. Committees must include representatives of local and 90.35 regional health, education, and county human service agencies, 90.36 county boards, school boards, early childhood family education 91.1 programs, parents of young children with disabilities under age 91.2 12, current service providers, and may also include 91.3 representatives from other private or public agencies and school 91.4 nurses. The committee must elect a chair from among its members 91.5 and must meet at least quarterly. 91.6 (b) The committee must develop and implement interagency 91.7 policies and procedures concerning the following ongoing duties: 91.8 (1) develop public awareness systems designed to inform 91.9 potential recipient families of available programs and services; 91.10 (2) implement interagency child find systems designed to 91.11 actively seek out, identify, and refer infants and young 91.12 children with, or at risk of, disabilities and their families; 91.13 (3) establish and evaluate the identification, referral, 91.14 child and family assessment systems, procedural safeguard 91.15 process, and community learning systems to recommend, where 91.16 necessary, alterations and improvements; 91.17 (4) assure the development of individualized family service 91.18 plans for all eligible infants and toddlers with disabilities 91.19 from birth through age two, and their families, and individual 91.20 education plans and individual service plans when necessary to 91.21 appropriately serve children with disabilities, age three and 91.22 older, and their families and recommend assignment of financial 91.23 responsibilities to the appropriate agencies; 91.24 (5) encourage agencies to develop individual family service 91.25 plans for children with disabilities, age three and older; 91.26 (6) implement a process for assuring that services involve 91.27 cooperating agencies at all steps leading to individualized 91.28 programs; 91.29 (7) facilitate the development of a transitional plan if a 91.30 service provider is not recommended to continue to provide 91.31 services; 91.32 (8) identify the current services and funding being 91.33 provided within the community for children with disabilities 91.34 under age five and their families; 91.35 (9) develop a plan for the allocation and expenditure of 91.36 additional state and federal early intervention funds under 92.1 United States Code, title 20, section 1471 et seq. (Part H, 92.2 Public Law Number 102-119) and United States Code, title 20, 92.3 section 631, et seq. (Chapter I, Public Law Number 89-313); and 92.4 (10) develop a policy that is consistent with section 92.5 13.05, subdivision 9, and federal law to enable a member of an 92.6 interagency early intervention committee to allow another member 92.7 access to data classified as not public. 92.8 (c) The local committee shall also: 92.9 (1) participate in needs assessments and program planning 92.10 activities conducted by local social service, health and 92.11 education agencies for young children with disabilities and 92.12 their families; 92.13 (2) review and comment on the early intervention section of 92.14 the total special education system for the district, the county 92.15 social service plan, the section or sections of the community 92.16 health services plan that address needs of and service 92.17 activities targeted to children with special health care needs, 92.18 and the section of the maternal and child health special project 92.19 grants that address needs of and service activities targeted to 92.20 children with chronic illness and disabilities; and. 92.21(3) prepare a yearly summary on the progress of the92.22community in serving young children with disabilities, and their92.23families, including the expenditure of funds.92.24(d) The summary must be organized following a format92.25prescribed by the commissioner of the state lead agency and must92.26be submitted to each of the local agencies and to the state92.27interagency coordinating council by October 1 of each year.92.28The departments of children, families, and learning,92.29health, and human services must provide assistance to the local92.30agencies in developing cooperative plans for providing services.92.31 Sec. 31. Minnesota Statutes 1998, section 125A.33, is 92.32 amended to read: 92.33 125A.33 [SERVICE COORDINATION.] 92.34 (a) The team developing the IFSP under section 125A.32 must 92.35 select a service coordinator to carry out service coordination 92.36 activities on an interagency basis. Service coordination must 93.1 actively promote a family's capacity and competency to identify, 93.2 obtain, coordinate, monitor, and evaluate resources and services 93.3 to meet the family's needs. Service coordination activities 93.4 include: 93.5 (1) coordinating the performance of evaluations and 93.6 assessments; 93.7 (2) facilitating and participating in the development, 93.8 review, and evaluation of individualized family service plans; 93.9 (3) assisting families in identifying available service 93.10 providers; 93.11 (4) coordinating and monitoring the delivery of available 93.12 services; 93.13 (5) informing families of the availability of advocacy 93.14 services; 93.15 (6) coordinating with medical, health, and other service 93.16 providers; 93.17 (7) facilitating the development of a transition plan at 93.18 leastsix months90 days before the time the child is no longer 93.19 eligible for early intervention services, if appropriate; 93.20 (8) managing the early intervention record and submitting 93.21 additional information to the local primary agency at the time 93.22 of periodic review and annual evaluations; and 93.23 (9) notifying a local primary agency when disputes between 93.24 agencies impact service delivery required by an IFSP. 93.25 (b) A service coordinator must be knowledgeable about 93.26 children and families receiving services under this section, 93.27 requirements of state and federal law, and services available in 93.28 the interagency early childhood intervention system. 93.29 Sec. 32. Minnesota Statutes 1998, section 125A.44, is 93.30 amended to read: 93.31 125A.44 [COMPLAINT PROCEDURE.] 93.32 (a) An individual or organization may file a written signed 93.33 complaint with the commissioner of the state lead agency 93.34 alleging that one or more requirements of the Code of Federal 93.35 Regulations, title 34, part 303, is not being met. The 93.36 complaint must include: 94.1 (1) a statement that the state has violated the Individuals 94.2 with Disabilities Education Act, United States Code, title 20, 94.3 section 1471 et seq. (Part H, Public Law Number 102-119) or Code 94.4 of Federal Regulations, title 34, section 303; and 94.5 (2) the facts on which the complaint is based. 94.6 (b) The commissioner of the state lead agency shall receive 94.7 and coordinate with other state agencies the review and 94.8 resolution of a complaint within 60 calendar days according to 94.9 the state interagency agreement required under section 125A.48. 94.10 The development and disposition of corrective action orders for 94.11 nonschool agencies shall be determined by the State Agency 94.12 Committee (SAC). Failure to comply with corrective orders may 94.13 result in fiscal actions or other measures. 94.14 Sec. 33. Minnesota Statutes 1998, section 125A.50, 94.15 subdivision 2, is amended to read: 94.16 Subd. 2. [APPLICATION CONTENTS.] The application must set 94.17 forth: 94.18 (1) instructional services available to eligible pupils 94.19 under section124D.67124D.66, subdivision32, and pupils with 94.20 a disability under section 125A.02; 94.21 (2) criteria to select pupils for the program and the 94.22 assessment procedures to determine eligibility; 94.23 (3) involvement in the program of parents of pupils in the 94.24 program, parent advocates, and community special education 94.25 advocates; 94.26 (4) accounting procedures to document that federal special 94.27 education money is used to supplement or increase the level of 94.28 special education instruction and related services provided with 94.29 state and local revenue, but in no case to supplant the state 94.30 and local revenue, and that districts are expending at least the 94.31 amount for special education instruction and related services 94.32 required by federal law; 94.33 (5) the role of regular and special education teachers in 94.34 planning and implementing the program; and 94.35 (6) other information requested by the commissioner. 94.36 Sec. 34. Minnesota Statutes 1998, section 125A.50, 95.1 subdivision 5, is amended to read: 95.2 Subd. 5. [ANNUAL REPORT.] Each year the district must 95.3 submit to the commissioner a report containing the information 95.4 described in subdivision 3and section 124D.67, subdivision 7. 95.5 Sec. 35. Minnesota Statutes 1998, section 125A.51, is 95.6 amended to read: 95.7 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 95.8 EDUCATION AND TRANSPORTATION.] 95.9 The responsibility for providing instruction and 95.10 transportation for a pupil without a disability who has a 95.11 short-term or temporary physical or emotional illness or 95.12 disability, as determined by the standards of the state board, 95.13 and who is temporarily placed for care and treatment for that 95.14 illness or disability, must be determined as provided in this 95.15 section. 95.16 (a) The school district of residence of the pupil is the 95.17 district in which the pupil's parent or guardian residesor the95.18district designated by the commissioner if neither parent nor95.19guardian is living within the state and tuition has been denied. 95.20 (b) When parental rights have been terminated by court 95.21 order, the legal residence of a child placed in a residential or 95.22 foster facility for care and treatment is the district in which 95.23 the child resides when parental rights have been terminated. 95.24(b)(c) Before the placement of a pupil for care and 95.25 treatment, the district of residence must be notified and 95.26 provided an opportunity to participate in the placement 95.27 decision. When an immediate emergency placement is necessary 95.28 and time does not permit resident district participation in the 95.29 placement decision, the district in which the pupil is 95.30 temporarily placed, if different from the district of residence, 95.31 must notify the district of residence of the emergency placement 95.32 within 15 days of the placement. 95.33(c)(d) When a pupil without a disability is temporarily 95.34 placed for care and treatment in a day program and the pupil 95.35 continues to live within the district of residence during the 95.36 care and treatment, the district of residence must provide 96.1 instruction and necessary transportation to and from the 96.2 treatment facility for the pupil. Transportation shall only be 96.3 provided by the district during regular operating hours of the 96.4 district. The district may provide the instruction at a school 96.5 within the district of residence, at the pupil's residence, or 96.6 in the case of a placement outside of the resident district, in 96.7 the district in which the day treatment program is located by 96.8 paying tuition to that district. The district of placement may 96.9 contract with a facility to provide instruction by teachers 96.10 licensed by the state board of teaching. 96.11(d)(e) When a pupil without a disability is temporarily 96.12 placed in a residential program for care and treatment, the 96.13 district in which the pupil is placed must provide instruction 96.14 for the pupil and necessary transportation while the pupil is 96.15 receiving instruction, and in the case of a placement outside of 96.16 the district of residence, the nonresident district must bill 96.17 the district of residence for the actual cost of providing the 96.18 instruction for the regular school year and for summer school, 96.19 excluding transportation costs. When a pupil without a 96.20 disability is temporarily placed in a residential program 96.21 outside the district of residence, the administrator of the 96.22 court placing the pupil must send timely written notice of the 96.23 placement to the district of residence. The district of 96.24 placement may contract with a residential facility to provide 96.25 instruction by teachers licensed by the state board of teaching. 96.26 For purposes of this section, the state correctional facilities 96.27 operated on a fee-for-service basis are considered to be 96.28 residential programs for care and treatment. 96.29(e)(f) The district of residence must include the pupil in 96.30 its residence count of pupil units and pay tuition as provided 96.31 in section 123A.488 to the district providing the instruction. 96.32 Transportation costs must be paid by the district providing the 96.33 transportation and the state must pay transportation aid to that 96.34 district. For purposes of computing state transportation aid, 96.35 pupils governed by this subdivision must be included in the 96.36 disabled transportation category. 97.1 Sec. 36. [125A.515] [PLACEMENT OF CHILDREN WITHOUT 97.2 DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 97.3 The commissioner shall approve education programs in care 97.4 and treatment facilities for placement of children without 97.5 disabilities, including detention centers, before being licensed 97.6 by the department of human services or the department of 97.7 corrections. 97.8 (Effective Date: Section 36 (125A.515) is effective July 97.9 1, 2000.) 97.10 Sec. 37. Minnesota Statutes 1998, section 125A.52, 97.11 subdivision 1, is amended to read: 97.12 Subdivision 1. [EDUCATIONAL SCREENING.] Secure and 97.13 nonsecure residential treatment facilities licensed by the 97.14 department of human services or the department of corrections 97.15 must screen each juvenile who is held in a facility for at least 97.16 72 hours, excluding weekends or holidays, using an educational 97.17 screening tool identified by the department, unless the facility 97.18 determines that the juvenile has a current individual education 97.19 plan and obtains a copy of it.The department must develop or97.20identify an education screening tool for use in residential97.21facilities. The tool must include a life skills development97.22component.97.23 Sec. 38. Minnesota Statutes 1998, section 125A.62, is 97.24 amended to read: 97.25 125A.62 [DUTIES OFSTATETHE BOARD OFEDUCATIONTHE 97.26 MINNESOTA STATE ACADEMIES.] 97.27 Subdivision 1. [GOVERNANCE.] The board of theFaribault97.28academyMinnesota state academies shall govern the state 97.29 academies for the deaf and the state academy for the blind. The 97.30 board must promote academic standards based on high expectation 97.31 and an assessment system to measure academic performance toward 97.32 the achievement of those standards. The board must focus on the 97.33 academies' needs as a whole and not prefer one school over the 97.34 other. The board of theFaribaultMinnesota state academies 97.35 shall consist ofsevennine persons. The members of the board 97.36 shall be appointed by the governor with the advice and consent 98.1 of the senate.Three membersOne member must be from the 98.2 seven-county metropolitan area,three membersone member must be 98.3 from greater Minnesota, and one member may be appointed at-large. 98.4 The board must be composed of: 98.5 (1) one present or former superintendent of an independent 98.6 school district; 98.7 (2) one present or former special education director; 98.8 (3) the commissioner of children, families, and learning or 98.9 the commissioner's designee; 98.10 (4) one member of the blind community; 98.11 (5) one member of the deaf community;and98.12 (6) two members of the general public with business, 98.13 administrative, or financial expertise; 98.14 (7) one nonvoting, unpaid ex officio member appointed by 98.15 the site council for the state academy for the deaf; and 98.16 (8) one nonvoting, unpaid ex officio member appointed by 98.17 the site council for the state academy for the blind. 98.18 Subd. 2. [TERMS; COMPENSATION; AND OTHER.] The membership 98.19 terms, compensation, removal of members, and filling of 98.20 vacancies shall be as provided for in section 15.0575. 98.21 Notwithstanding section 15.0575, a member may serve not more 98.22 than two consecutive four-year terms. 98.23 Subd. 3. [MEETINGS.] All meetings of the board shall be as 98.24 provided in section 471.705 and must be held in Faribault. 98.25 Subd. 4. [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 98.26 must do what is necessary to provide the most beneficial and 98.27 least restrictive program of education for each pupil at the 98.28 academies who is handicapped by visual disability or deafness. 98.29 Subd. 5. [PLANNING, EVALUATION, AND REPORTING.] To the 98.30 extent required in school districts, the board must establish a 98.31 process for the academies to include parent and community input 98.32 in the planning, evaluation, and reporting of curriculum and 98.33 pupil achievement. 98.34 Subd. 6. [SITE COUNCILS.] The boardmaymust establish, 98.35 and appoint members to, a site council at each academy. The 98.36 site councils shall exercise power and authority granted by the 99.1 board. The board must appoint to each site council the 99.2 exclusive representative's employee designee from each exclusive 99.3 representative at the academies. The site councils may make a 99.4 recommendation to the governor regarding board appointments no 99.5 more than 30 days after receiving the list of applicants from 99.6 the governor. 99.7 Subd. 7. [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 99.8 the trustee of the academies' property. Securities and money, 99.9 including income from the property, must be deposited in the 99.10 state treasury according to section 16A.275. The deposits are 99.11 subject to the order of the board. 99.12 Subd. 8. [GRANTS.] The board, through the chief 99.13 administrators of the academies, may apply for all competitive 99.14 grants administered by agencies of the state and other 99.15 government or nongovernment sources. Application may not be 99.16 made for grants over which the board has discretion. 99.17 (Effective date: Section 38 (125A.62) is effective 99.18 December 31, 1999.) 99.19 Sec. 39. Minnesota Statutes 1998, section 125A.64, is 99.20 amended to read: 99.21 125A.64 [POWERS OF BOARD OF THEFARIBAULTMINNESOTA STATE 99.22 ACADEMIES.] 99.23 Subdivision 1. [PERSONNEL.] The board of theFaribault99.24 Minnesota state academies may employ central administrative 99.25 staff members and other personnel necessary to provide and 99.26 support programs and services at each academy. 99.27 Subd. 2. [GET HELP FROM DEPARTMENT.] The board of the 99.28FaribaultMinnesota state academies may require the department 99.29 of children, families, and learning to provide program 99.30 leadership, program monitoring, and technical assistance at the 99.31 academies. 99.32 Subd. 3. [UNCLASSIFIED POSITIONS.] The board of the 99.33FaribaultMinnesota state academies may place any position other 99.34 than residential academies administrator in the unclassified 99.35 service. The position must meet the criteria in section 43A.08, 99.36 subdivision 1a. 100.1 Subd. 4. [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 100.2 The board of theFaribaultMinnesota state academies may enter 100.3 into agreements with public or private agencies or institutions 100.4 to provide residential and building maintenance services. The 100.5 board of theFaribaultMinnesota state academies must first 100.6 decide that contracting for the services is more efficient and 100.7 less expensive than not contracting for them. 100.8 Subd. 5. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 100.9 The board of theFaribaultMinnesota state academies may enter 100.10 into agreements with teacher preparation institutions for 100.11 student teachers to get practical experience at the academies. 100.12 A licensed teacher must provide appropriate supervision of each 100.13 student teacher. 100.14 (b) The board of theFaribaultMinnesota state academies 100.15 may enter into agreements with accredited higher education 100.16 institutions for certain student trainees to get practical 100.17 experience at the academies. The students must be preparing 100.18 themselves in a professional field that provides special 100.19 services to children with a disability in school programs. To 100.20 be a student trainee in a field, a person must have completed at 100.21 least two years of an approved program in the field. A person 100.22 who is licensed or registered in the field must provide 100.23 appropriate supervision of each student trainee. 100.24 (Effective date: Section 39 (125A.64) is effective 100.25 December 31, 1999.) 100.26 Sec. 40. Minnesota Statutes 1998, section 125A.65, 100.27 subdivision 3, is amended to read: 100.28 Subd. 3. [EDUCATIONAL PROGRAM; TUITION.] When it is 100.29 determined pursuant to section 125A.69, subdivision 1 or 2, that 100.30 the child is entitled to attend either school, the board of the 100.31FaribaultMinnesota state academies must provide the appropriate 100.32 educational program for the child. The board of theFaribault100.33 Minnesota state academies must make a tuition charge to the 100.34 child's district of residence for the cost of providing the 100.35 program. The amount of tuition charged must not exceed the 100.36 basic revenue of the district for that child, for the amount of 101.1 time the child is in the program. For purposes of this 101.2 subdivision, "basic revenue" has the meaning given it in section 101.3 126C.10, subdivision 2. The district of the child's residence 101.4 must pay the tuition and may claim general education aid for the 101.5 child. Tuition received by the board of theFaribaultMinnesota 101.6 state academies, except for tuition received under subdivision 101.7 4, must be deposited in the state treasury as provided in 101.8 subdivision 8. 101.9 (Effective date: Section 40 (125A.65, subdivision 3) is 101.10 effective December 31, 1999.) 101.11 Sec. 41. Minnesota Statutes 1998, section 125A.65, 101.12 subdivision 5, is amended to read: 101.13 Subd. 5. [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 101.14 When it is determined that the child can benefit from public 101.15 school enrollment but that the child should also remain in 101.16 attendance at the applicable school, the district where the 101.17 institution is located must provide an appropriate educational 101.18 program for the child and must make a tuition charge to the 101.19 board of theFaribaultMinnesota state academies for the actual 101.20 cost of providing the program, less any amount of aid received 101.21 pursuant to section 125A.75. The board of theFaribault101.22 Minnesota state academies must pay the tuition and other program 101.23 costs including the unreimbursed transportation costs. Aids for 101.24 children with a disability must be paid to the district 101.25 providing the special instruction and services. Special 101.26 transportation must be provided by the district providing the 101.27 educational program and the state must reimburse that district 101.28 within the limits provided by law. 101.29 (Effective date: Section 41 (125A.65, subdivision 5) is 101.30 effective December 31, 1999.) 101.31 Sec. 42. Minnesota Statutes 1998, section 125A.65, 101.32 subdivision 6, is amended to read: 101.33 Subd. 6. [TUITION REDUCTION.] Notwithstanding the 101.34 provisions of subdivisions 3 and 5, the board of theFaribault101.35 Minnesota state academies may agree to make a tuition charge for 101.36 less than the amount specified in subdivision 3 for pupils 102.1 attending the applicable school who are residents of the 102.2 district where the institution is located and who do not board 102.3 at the institution, if that district agrees to make a tuition 102.4 charge to the board of theFaribaultMinnesota state academies 102.5 for less than the amount specified in subdivision 5 for 102.6 providing appropriate educational programs to pupils attending 102.7 the applicable school. 102.8 (Effective date: Section 42 (125A.65, subdivision 6) is 102.9 effective December 31, 1999.) 102.10 Sec. 43. Minnesota Statutes 1998, section 125A.65, 102.11 subdivision 7, is amended to read: 102.12 Subd. 7. [STAFF ALLOCATION.] Notwithstanding the 102.13 provisions of subdivisions 3 and 5, the board of theFaribault102.14 Minnesota state academies may agree to supply staff from the 102.15 Minnesota state academy for the deaf and the Minnesota state 102.16 academy for the blind to participate in the programs provided by 102.17 the district where the institutions are located when the 102.18 programs are provided to students in attendance at the state 102.19 schools. 102.20 (Effective date: Section 43 (125A.65, subdivision 7) is 102.21 effective December 31, 1999.) 102.22 Sec. 44. Minnesota Statutes 1998, section 125A.65, 102.23 subdivision 8, is amended to read: 102.24 Subd. 8. [STUDENT COUNT; TUITION.] On May 1 of each year, 102.25 the board of theFaribaultMinnesota state academies shall count 102.26 the actual number of Minnesota resident kindergarten and 102.27 elementary students and the actual number of Minnesota resident 102.28 secondary students enrolled and receiving education services at 102.29 the Minnesota state academy for the deaf and the Minnesota state 102.30 academy for the blind. The board of theFaribaultMinnesota 102.31 state academies shall deposit in the state treasury an amount 102.32 equal to all tuition received less: 102.33 (1) the total number of students on May 1 less 175, times 102.34 the ratio of the number of kindergarten and elementary students 102.35 to the total number of students on May 1, times the general 102.36 education formula allowance; plus 103.1 (2) the total number of students on May 1 less 175, times 103.2 the ratio of the number of secondary students on May 1 to the 103.3 total number of students on May 1, times 1.3, times the general 103.4 education formula allowance. 103.5 (Effective date: Section 44 (125A.65, subdivision 8) is 103.6 effective December 31, 1999.) 103.7 Sec. 45. Minnesota Statutes 1998, section 125A.65, 103.8 subdivision 10, is amended to read: 103.9 Subd. 10. [ANNUAL APPROPRIATION.] There is annually 103.10 appropriated to the department for theFaribaultMinnesota state 103.11 academies the tuition amounts received and credited to the 103.12 general operation account of the academies under this section. 103.13 A balance in an appropriation under this paragraph does not 103.14 cancel but is available in successive fiscal years. 103.15 (Effective date: Section 45 (125A.65, subdivision 10) is 103.16 effective December 31, 1999.) 103.17 Sec. 46. Minnesota Statutes 1998, section 125A.68, 103.18 subdivision 1, is amended to read: 103.19 Subdivision 1. [SUBJECTS.] The board of theFaribault103.20 Minnesota state academies must establish procedures for: 103.21 (1) admission, including short-term admission, to the 103.22 academies; 103.23 (2) discharge from the academies; 103.24 (3) decisions on a pupil's program at the academies; and 103.25 (4) evaluation of a pupil's progress at the academies. 103.26 (Effective date: Section 46 (125A.68, subdivision 1) is 103.27 effective December 31, 1999.) 103.28 Sec. 47. Minnesota Statutes 1998, section 125A.69, 103.29 subdivision 1, is amended to read: 103.30 Subdivision 1. [TWO KINDS.] There are two kinds of 103.31 admission to the Minnesota state academies. 103.32 (a) A pupil who is deaf, hard of hearing, or blind-deaf, 103.33 may be admitted to the academy for the deaf. A pupil who is 103.34 blind or visually impaired, blind-deaf, or multiply handicapped 103.35 may be admitted to the academy for the blind. For a pupil to be 103.36 admitted, two decisions must be made under sections 125A.03 to 104.1 125A.24 and 125A.65. 104.2 (1) It must be decided by the individual education planning 104.3 team that education in regular or special education classes in 104.4 the pupil's district of residence cannot be achieved 104.5 satisfactorily because of the nature and severity of the 104.6 deafness or blindness or visual impairment respectively. 104.7 (2) It must be decided by the individual education planning 104.8 team that the academy provides the most appropriate placement 104.9 within the least restrictive alternative for the pupil. 104.10 (b) A deaf or hard of hearing child or a visually impaired 104.11 pupil may be admitted to get socialization skills or on a 104.12 short-term basis for skills development. 104.13 (Effective date: Section 47 (125A.69, subdivision 1) is 104.14 effective December 1, 1999.) 104.15 Sec. 48. Minnesota Statutes 1998, section 125A.69, 104.16 subdivision 3, is amended to read: 104.17 Subd. 3. [OUT-OF-STATE ADMISSIONS.] An applicant from 104.18 another state who can benefit from attending either academy may 104.19 be admitted to the academy if the admission does not prevent an 104.20 eligible Minnesota resident from being admitted. Thestate104.21board of educationboard of the Minnesota state academies must 104.22 obtain reimbursement from the other state for the costs of the 104.23 out-of-state admission. The state board may enter into an 104.24 agreement with the appropriate authority in the other state for 104.25 the reimbursement. Money received from another state must be 104.26 deposited in the general fund and credited to the general 104.27 operating account of the academies. The money is appropriated 104.28 to the academies. 104.29 (Effective date: Section 48 (125A.69, subdivision 3) is 104.30 effective December 31, 1999.) 104.31 Sec. 49. Minnesota Statutes 1998, section 125A.70, 104.32 subdivision 2, is amended to read: 104.33 Subd. 2. [LOCAL SOCIAL SERVICES AGENCY.] If the person 104.34 liable for support of a pupil cannot support the pupil, the 104.35 local social services agency of the county of the pupil's 104.36 residence must do so. The commissioner of children, families, 105.1 and learning must decide how much the local social services 105.2 agency must pay. The board of theFaribaultMinnesota state 105.3 academies must adopt rules that tell how the commissioner is to 105.4 fix the amount. The local social services agency must make the 105.5 payment to the superintendent of the school district of 105.6 residence. 105.7 (Effective date: Section 49 (125A.70, subdivision 2) is 105.8 effective December 31, 1999.) 105.9 Sec. 50. Minnesota Statutes 1998, section 125A.71, 105.10 subdivision 3, is amended to read: 105.11 Subd. 3. [CONTRACTS; FEES; APPROPRIATION.] Thestateboard 105.12 of the Minnesota state academies may enter into agreements for 105.13 the academies to provide respite care and supplemental 105.14 educational instruction and services including assessments and 105.15 counseling. The agreements may be made with public or private 105.16 agencies or institutions, school districts, service 105.17 cooperatives, or counties. The board may authorize the 105.18 academies to provide conferences, seminars, nondistrict and 105.19 district requested technical assistance, and production of 105.20 instructionally related materials. 105.21 (Effective date: Section 50 (125A.71, subdivision 3) is 105.22 effective December 31, 1999.) 105.23 Sec. 51. Minnesota Statutes 1998, section 125A.72, is 105.24 amended to read: 105.25 125A.72 [STUDENT ACTIVITIES ACCOUNT.] 105.26 Subdivision 1. [STUDENT ACTIVITIES; RECEIPTS; 105.27 APPROPRIATION.] All receipts of any kind generated to operate 105.28 student activities, including student fees, donations and 105.29 contributions, and gate receipts must be deposited in the state 105.30 treasury. The receipts are appropriated annually to the 105.31residentialMinnesota state academies for student activities 105.32 purposes. They are not subject to budgetary control by the 105.33 commissioner of finance. 105.34 Subd. 2. [TO STUDENT ACTIVITIES ACCOUNT.] The money 105.35 appropriated in subdivision 1 to theresidentialMinnesota state 105.36 academies for student activities must be credited to aFaribault106.1 Minnesota state academies' student activities account and may be 106.2 spent only forFaribaultMinnesota state academies' student 106.3 activities purposes. 106.4 Subd. 3. [CARRYOVER.] An unexpended balance in the 106.5FaribaultMinnesota state academies' student activities account 106.6 may be carried over from the first fiscal year of the biennium 106.7 into the second fiscal year of the biennium and from one 106.8 biennium to the next. The amount carried over must not be taken 106.9 into account in determining state appropriations and must not be 106.10 deducted from a later appropriation. 106.11 Subd. 4. [MONEY FROM CERTAIN STUDENT ACTIVITIES 106.12 SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 106.13 aFaribaultMinnesota state academies' student activity that 106.14 involves: 106.15 (1) state employees who are receiving compensation for 106.16 their involvement with the activity; 106.17 (2) the use of state facilities; or 106.18 (3) money raised for student activities in the name of the 106.19residentialMinnesota state academies 106.20 is specifically included among the kinds of receipts that are 106.21 described in subdivision 1. 106.22 (Effective date: Section 51 (125A.72) is effective 106.23 December 31, 1999.) 106.24 Sec. 52. Minnesota Statutes 1998, section 125A.73, is 106.25 amended to read: 106.26 125A.73 [DUTIES OF STATE DEPARTMENTS.] 106.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 106.28 LEARNING.] The department of children, families, and learning 106.29 must assist the board of theFaribaultMinnesota state academies 106.30 in preparing reports on the academies. 106.31 Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] The 106.32 department of employee relations, in cooperation with the board 106.33 of theFaribaultMinnesota state academies, must develop a 106.34 statement of necessary qualifications and skills for all staff 106.35 members of the academies. 106.36 (Effective date: Section 52 (125A.73) is effective 107.1 December 31, 1999.) 107.2 Sec. 53. Minnesota Statutes 1998, section 125A.744, 107.3 subdivision 3, is amended to read: 107.4 Subd. 3. [IMPLEMENTATION.] Consistent with section 107.5 256B.0625, subdivision 26, school districts may enroll as 107.6 medical assistance providers or subcontractors and bill the 107.7 department of human services under the medical assistance fee 107.8 for service claims processing system for special education 107.9 services which are covered services under chapter 256B, which 107.10 are provided in the school setting for a medical assistance 107.11 recipient, and for whom the district has secured informed 107.12 consent consistent with section 13.05, subdivision 4, paragraph 107.13 (d), and section 256B.77, subdivision 2, paragraph (p), to bill 107.14 for each type of covered service. School districts shall be 107.15 reimbursed by the commissioner of human services for the federal 107.16 share of individual education plan health-related services that 107.17 qualify for reimbursement by medical assistance. A school 107.18 district is not eligible to enroll as a home care provider or a 107.19 personal care provider organization for purposes of billing home 107.20 care services under section 256B.0627 until the commissioner of 107.21 human services issues a bulletin instructing county public 107.22 health nurses on how to assess for the needs of eligible 107.23 recipients during school hours. To use private duty nursing 107.24 services or personal care services at school, the recipient or 107.25 responsible party must provide written authorization in the care 107.26 plan identifying the chosen provider and the daily amount of 107.27 services to be used at school.Medical assistance services for107.28those enrolled in a prepaid health plan shall remain the107.29responsibility of the contracted health plan subject to their107.30network, credentialing, prior authorization, and determination107.31of medical necessity criteria. The commissioner of human107.32services shall adjust payments to health plans to reflect107.33increased costs incurred by health plans due to increased107.34payments made to school districts or new payment or delivery107.35arrangements developed by health plans in cooperation with107.36school districts.108.1 (Effective Date: Section 53 (125A.744, subdivision 3) is 108.2 effective July 1, 2000.) 108.3 Sec. 54. Minnesota Statutes 1998, section 125A.75, 108.4 subdivision 3, is amended to read: 108.5 Subd. 3. [FULL STATE PAYMENT.] The state must pay each 108.6 district the actual cost incurred in providing instruction and 108.7 services for a childwith a disabilitywhose district of 108.8 residence has been determined by section 125A.17 or 125A.51, 108.9 paragraph (b), and who is temporarily placed in a state 108.10 institutionor, a licensed residential facility, or foster 108.11 facility for care and treatment.This section does not apply to108.12a child placed in a foster home or a foster group home.The 108.13 regular education program at the facility must be an approved 108.14 program according to section 125A.515. 108.15 Upon following the procedure specified by the commissioner, 108.16 the district may bill the state the actual cost incurred in 108.17 providing the services including transportation costs and a 108.18 proportionate amount of capital expenditures and debt service, 108.19 minus the amount of the basic revenue, as defined in section 108.20 126C.10, subdivision 2, of the district for the child and the 108.21 special education aid, transportation aid, and any other aid 108.22 earned on behalf of the child. The limit in subdivision 2 108.23 applies to aid paid pursuant to this subdivision. 108.24 To the extent possible, the commissioner shall obtain 108.25 reimbursement from another state for the cost of serving any 108.26 child whose parent or guardian resides in that state. The 108.27 commissioner may contract with the appropriate authorities of 108.28 other states to effect reimbursement. All money received from 108.29 other states must be paid to the state treasury and placed in 108.30 the general fund. 108.31 (Effective Date: Section 54 (125A.75, subdivision 3) is 108.32 effective July 1, 2000.) 108.33 Sec. 55. Minnesota Statutes 1998, section 125A.75, 108.34 subdivision 8, is amended to read: 108.35 Subd. 8. [LITIGATION AND HEARING COSTS.] (a) For fiscal 108.36 year 1999 and thereafter, the commissioner of children, 109.1 families, and learning, or the commissioner's designee, shall 109.2 use state funds to pay school districts for the administrative 109.3 costs of a due process hearing incurred under section 125A.09, 109.4 subdivisions 6, 10, and 11, including hearing officer fees, 109.5 court reporter fees, mileage costs, transcript 109.6 costs, interpreter and transliterator fees, independent 109.7 evaluations ordered by the hearing officer, and rental of 109.8 hearing rooms, but not including district attorney fees. To 109.9 receive state aid under this paragraph, a school district shall 109.10 submit to the commissionerat the end of the school yearby 109.11 August 1 an itemized list of unreimbursed actual costs for fees 109.12 and other expenses under this paragraph incurred after June 30, 109.13 1998, for hearings completed during the previous fiscal year. 109.14 State funds used for aid to school districts under this 109.15 paragraph shall be based on the unreimbursed actual costs and 109.16 fees submitted by a districtfrom previous school years. 109.17 (b)For fiscal year 1999 and thereafter, a school district,109.18to the extent to which it prevails under United States Code,109.19title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal109.20Rules of Civil Procedure, shall receive state aid equal to 50109.21percent of the total actual cost of attorney fees incurred after109.22a request for a due process hearing under section 125A.09,109.23subdivisions 6, 9, and 11, is served upon the parties. A109.24district is eligible for reimbursement for attorney fees under109.25this paragraph only if:109.26(1) a court of competent jurisdiction determines that the109.27parent is not the prevailing party under United States Code,109.28title 20, section 1415(i)(3)(B)(D), or the parties stipulate109.29that the parent is not the prevailing party;109.30(2) the district has made a good faith effort to resolve109.31the dispute through mediation, but the obligation to mediate109.32does not compel the district to agree to a proposal or make a109.33concession; and109.34(3) the district made an offer of settlement under Rule 68109.35of the Federal Rules of Civil Procedure.109.36To receive aid, a school district that meets the criteria110.1of this paragraph shall submit to the commissioner at the end of110.2the school year an itemized list of unreimbursed actual attorney110.3fees associated with a due process hearing under section110.4125A.09, subdivisions 6, 9, and 11. Aid under this paragraph110.5for each school district is based on unreimbursed actual110.6attorney fees submitted by the district from previous school110.7years.110.8(c) For fiscal year 1999 and thereafter, a school district110.9is eligible to receive state aid for 50 percent of the total110.10actual cost of attorney fees it incurs in appealing to a court110.11of competent jurisdiction the findings, conclusions, and order110.12of a due process hearing under section 125A.09, subdivisions 6,110.139, and 11. The district is eligible for reimbursement under110.14this paragraph only if the commissioner authorizes the110.15reimbursement after evaluating the merits of the case. In a110.16case where the commissioner is a named party in the litigation,110.17the commissioner of the bureau of mediation services shall make110.18the determination regarding reimbursement. The commissioner's110.19decision is final.110.20(d)The commissioner shall provide districts with a form on 110.21 which to annually report litigation costs under this section and 110.22 shall base aid estimates onthosepreliminary reports submitted 110.23 by the district during the current fiscal year. 110.24 (Effective Date: Section 55 (125A.75, subdivision 8) is 110.25 effective the day following final enactment.) 110.26 Sec. 56. Minnesota Statutes 1998, section 125A.76, 110.27 subdivision 1, is amended to read: 110.28 Subdivision 1. [DEFINITIONS.] For the purposes of this 110.29 sectionand section 125A.77, the definitions in this subdivision 110.30 apply. 110.31 (a) "Base year" for fiscal year 1998 and later fiscal years 110.32 means the second fiscal year preceding the fiscal year for which 110.33 aid will be paid. 110.34 (b) "Basic revenue" has the meaning given it in section 110.35 126C.10, subdivision 2. For the purposes of computing basic 110.36 revenue pursuant to this section, each child with a disability 111.1 shall be counted as prescribed in section 126C.05, subdivision 1. 111.2 (c) "Essential personnel" means teachers, related services, 111.3 and support services staff providing direct services to students. 111.4 (d) "Average daily membership" has the meaning given it in 111.5 section 126C.05. 111.6 (e) "Program growth factor" means1.001.02 for fiscal year 111.720002002 and later. 111.8(f) "Aid percentage factor" means 60 percent for fiscal111.9year 1996, 70 percent for fiscal year 1997, 80 percent for111.10fiscal year 1998, 90 percent for fiscal year 1999, and 100111.11percent for fiscal years 2000 and later.111.12(g) "Levy percentage factor" means 100 minus the aid111.13percentage factor for that year.111.14 Sec. 57. Minnesota Statutes 1998, section 125A.76, 111.15 subdivision 2, is amended to read: 111.16 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 111.17 education base revenue equals the sum of the following amounts 111.18 computed using base year data: 111.19 (1) 68 percent of the salary of each essential person 111.20 employed in the district's program for children with a 111.21 disability during the fiscal year, not including the share of 111.22 salaries for personnel providing health-related services counted 111.23 in clause (8), whether the person is employed by one or more 111.24 districts or a Minnesota correctional facility operating on a 111.25 fee-for-service basis; 111.26 (2) for the Minnesota state academy for the deaf or the 111.27 Minnesota state academy for the blind, 68 percent of the salary 111.28 of each instructional aide assigned to a child attending the 111.29 academy, if that aide is required by the child's individual 111.30 education plan; 111.31 (3) for special instruction and services provided to any 111.32 pupil by contracting with public, private, or voluntary agencies 111.33 other than school districts, in place of special instruction and 111.34 services provided by the district, 52 percent of the difference 111.35 between the amount of the contract and the basic revenue of the 111.36 district for that pupil for the fraction of the school day the 112.1 pupil receives services under the contract; 112.2 (4) for special instruction and services provided to any 112.3 pupil by contracting for services with public, private, or 112.4 voluntary agencies other than school districts, that are 112.5 supplementary to a full educational program provided by the 112.6 school district, 52 percent of the amount of the contract for 112.7 that pupil; 112.8 (5) for supplies and equipment purchased or rented for use 112.9 in the instruction of children with a disability, not including 112.10 the portion of the expenses for supplies and equipment used to 112.11 provide health-related services counted in clause (8), an amount 112.12 equal to 47 percent of the sum actually expended by the 112.13 district, or a Minnesota correctional facility operating on a 112.14 fee-for-service basis, but not to exceed an average of $47 in 112.15 any one school year for each child with a disability receiving 112.16 instruction; 112.17 (6) for fiscal years 1997 and later, special education base 112.18 revenue shall include amounts under clauses (1) to (5) for 112.19 special education summer programs provided during the base year 112.20 for that fiscal year;and112.21 (7) for fiscal years 1999 and later, the cost of providing 112.22 transportation services for children with disabilities under 112.23 section 123B.92, subdivision 1, paragraph (b), clause (4); and 112.24 (8) for fiscal years 2001 and later the cost of salaries, 112.25 supplies and equipment, and other related costs actually 112.26 expended by the district for the nonfederal share of medical 112.27 assistance services according to section 256B.0625, subdivision 112.28 26. 112.29 (b) If requested by a school district operating a special 112.30 education program during the base year for less than the full 112.31 fiscal year, or a school district in which is located a 112.32 Minnesota correctional facility operating on a fee-for-service 112.33 basis for less than the full fiscal year, the commissioner may 112.34 adjust the base revenue to reflect the expenditures that would 112.35 have occurred during the base year had the program been operated 112.36 for the full fiscal year. 113.1 (c) Notwithstanding paragraphs (a) and (b), the portion of 113.2 a school district's base revenue attributable to a Minnesota 113.3 correctional facility operating on a fee-for-service basis 113.4 during the facility's first year of operating on a 113.5 fee-for-service basis shall be computed using current year data. 113.6 (Effective Date: Section 57 (125A.76, subdivision 2) is 113.7 effective July 1, 2000). 113.8 Sec. 58. Minnesota Statutes 1998, section 125A.76, 113.9 subdivision 4, is amended to read: 113.10 Subd. 4. [STATE TOTAL SPECIAL EDUCATIONREVENUEAID.] The 113.11 state total special educationrevenueaid for fiscal year1998113.12 2000 equals$358,542,000$436,834,000. The state total special 113.13 educationrevenueaid for fiscal year19992001 equals 113.14$435,322,000$436,834,000. The state total special 113.15 educationrevenueaid for later fiscal years equals: 113.16 (1) the state total special educationrevenueaid for the 113.17 preceding fiscal year; times 113.18 (2) the program growth factor; times 113.19 (3) the ratio of the state total average daily membership 113.20 for the current fiscal year to the state total average daily 113.21 membership for the preceding fiscal year. 113.22 Sec. 59. Minnesota Statutes 1998, section 125A.76, 113.23 subdivision 5, is amended to read: 113.24 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATIONREVENUEAID.] 113.25 (a) A school district's special educationrevenueaid for fiscal 113.26 year19962000 and later equals the state total special 113.27 educationrevenueaid, minus the amount determined 113.28 underparagraphparagraphs (b) and (c), times the ratio of the 113.29 district's adjusted special education base revenue to the state 113.30 total adjusted special education base revenue. If the state 113.31 board of education modifies its rules for special education in a 113.32 manner that increases a district's special education obligations 113.33 or service requirements, the commissioner shall annually 113.34 increase each district's special educationrevenueaid by the 113.35 amount necessary to compensate for the increased service 113.36 requirements. The additionalrevenueaid equals the cost in the 114.1 current year attributable to rule changes not reflected in the 114.2 computation of special education base revenue, multiplied by the 114.3 appropriate percentages from subdivision 2. 114.4 (b) Notwithstanding paragraph (a), if the special education 114.5 base revenue for a district equals zero, the special education 114.6revenueaid equals the amount computed according to subdivision 114.7 2 using current year data. 114.8 (c) Notwithstanding paragraphs (a) and (b), if the special 114.9 education base revenue for a district is greater than zero, and 114.10 the base year amount for the district under subdivision 2, 114.11 paragraph (a), clause (7), equals zero, the special education 114.12revenueaid equals the sum of the amount computed according to 114.13 paragraph (a), plus the amount computed according to subdivision 114.14 2, paragraph (a), clause (7), using current year data. 114.15 Sec. 60. Minnesota Statutes 1998, section 125A.79, 114.16 subdivision 1, is amended to read: 114.17 Subdivision 1. [DEFINITIONS.] For the purposes of this 114.18 section, the definitions in this subdivision apply. 114.19 (a) "Unreimbursed special education cost" means the sum of 114.20 the following: 114.21 (1) expenditures for teachers' salaries, contracted 114.22 services, supplies, equipment, and transportation services 114.23 eligible for revenue under section 125A.76; plus 114.24 (2) expenditures for tuition bills received under sections 114.25 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 114.26 under sections 125A.76, subdivision 2, and 124.3202, subdivision 114.27 1; minus 114.28 (3) revenue for teachers' salaries, contracted services, 114.29 supplies, and equipment under sections 124.3202 and 124A.76; 114.30 minus 114.31 (4) tuition receipts under sections 125A.03 to 125A.24 and 114.32 125A.65 for services eligible for revenue under sections 114.33 124.3202, subdivision 1, and 124A.76, subdivision 2. 114.34 (b) "General revenue" means for fiscal year 1996, the sum 114.35 of the general education revenue according to section 126C.10, 114.36 subdivision 1, as adjusted according to section 127A.47, 115.1 subdivision 7, plus the total referendum revenue according to 115.2 section 126C.17, subdivision 4. For fiscal years 1997 and 115.3 later, "general revenue" means the sum of the general education 115.4 revenue according to section 126C.10, subdivision 1, as adjusted 115.5 according to section 127A.47,subdivisionsubdivisions 7 and 8, 115.6 plus the total referendum revenue minus transportation sparsity 115.7 revenue minus total operating capital revenue. 115.8 (c) "Average daily membership" has the meaning given it in 115.9 section 126C.05. 115.10 (d) "Program growth factor" means 1.044 for fiscal year 115.11 2002 and 1.02 for fiscal year 2003 and later. 115.12 Sec. 61. Minnesota Statutes 1998, section 125A.79, 115.13 subdivision 2, is amended to read: 115.14 Subd. 2. [EXCESS COSTREVENUEAID, FISCAL YEARS 2000 AND 115.15 2001.] For1997 and laterfiscal years 2000 and 2001, a 115.16 district's special education excess costrevenueaid equals the 115.17 greatest of: 115.18 (a)7080 percent of the difference between (1) the 115.19 district's unreimbursed special education cost and (2)5.75.2 115.20 percentfor fiscal year 1997 and later yearsof the district's 115.21 general revenue; 115.22 (b) 70 percent of the difference between (1) the increase 115.23 in the district's unreimbursed special education cost between 115.24 the base year as defined in section 125A.76, subdivision 1, and 115.25 the current year and (2) 1.6 percent of the district's general 115.26 revenue; or 115.27 (c) zero. 115.28 Sec. 62. Minnesota Statutes 1998, section 125A.79, 115.29 subdivision 4, is amended to read: 115.30 Subd. 4. [TUITION.] Notwithstanding sections 125A.03 to 115.31 125A.24 and 125A.65, for children who are nonresidents of 115.32 Minnesota, receive services under section 125A.76, subdivisions 115.33 1 and 2,andare placed in the serving school district by court 115.34 action, and are from a state that does not have a reciprocity 115.35 agreement with the commissioner under section 125A.115, the 115.36 serving school district shall submit unreimbursed tuition bills 116.1 for eligible services to the department of children, families, 116.2 and learning instead of the resident school district. To be 116.3 eligible for reimbursement, the serving school district, as part 116.4 of its child intake procedures, must demonstrate good faith 116.5 effort to obtain from the placing agency a financial commitment 116.6 to pay tuition costs. The state shall not reimburse school 116.7 districts under this section if there is a special education 116.8 reciprocity agreement under section 125A.115 with the state of 116.9 which the student is a resident. 116.10 (Effective Date: Section 62 (125A.79, subdivision 4) is 116.11 effective July 1, 2000.) 116.12 Sec. 63. Minnesota Statutes 1998, section 125A.79, is 116.13 amended by adding a subdivision to read: 116.14 Subd. 5. [INITIAL EXCESS COST AID.] For fiscal years 2002 116.15 and later, a district's initial excess cost aid equals the 116.16 greatest of: 116.17 (1) 80 percent of the difference between (i) the district's 116.18 unreimbursed special education cost and (ii) 5.2 percent of the 116.19 district's general revenue; 116.20 (2) 70 percent of the difference between (i) the increase 116.21 in the district's unreimbursed special education cost between 116.22 the base year as defined in section 125A.76, subdivision 1, and 116.23 the current year and (ii) 1.6 percent of the district's general 116.24 revenue; or 116.25 (3) zero. 116.26 Sec. 64. Minnesota Statutes 1998, section 125A.79, is 116.27 amended by adding a subdivision to read: 116.28 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST 116.29 AID.] The state total special education excess cost aid for 116.30 fiscal year 2002 and later fiscal years equals: 116.31 (1) the state total special education excess cost aid for 116.32 the preceding fiscal year; times 116.33 (2) the program growth factor; times 116.34 (3) the ratio of the state total average daily membership 116.35 for the current fiscal year to the state total average daily 116.36 membership for the preceding fiscal year. 117.1 Sec. 65. Minnesota Statutes 1998, section 125A.79, is 117.2 amended by adding a subdivision to read: 117.3 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 117.4 district's special education excess cost aid for fiscal year 117.5 2002 and later equals the state total special education excess 117.6 cost aid times the ratio of the district's initial excess cost 117.7 aid to the state total initial excess cost aid. 117.8 Sec. 66. Minnesota Statutes 1998, section 125A.79, is 117.9 amended by adding a subdivision to read: 117.10 Subd. 8. [OUT-OF-STATE TUITION.] For children who are 117.11 residents of the state, receive services under section 125A.76, 117.12 subdivisions 1 and 2, and are placed in a care and treatment 117.13 facility by court action in a state that does not have a 117.14 reciprocity agreement with the commissioner under section 117.15 125A.115, the resident school district shall submit the balance 117.16 of the tuition bills, minus the amount of the basic revenue, as 117.17 defined by section 126C.10, subdivision 2, of the district for 117.18 the child and the special education aid, and any other aid 117.19 earned on behalf of the child. 117.20 (Effective Date: Section 66 (125A.79, subdivision 8) is 117.21 effective July 1, 2000.) 117.22 Sec. 67. [125A.80] [UNIFORM BILLING SYSTEM FOR THE 117.23 EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 117.24 The commissioner shall implement a uniform billing system 117.25 for school districts and other agencies, including private 117.26 providers, who provide the educational services for students who 117.27 are placed out of the home. The uniform billing system must: 117.28 (1) allow for the proper and timely billing to districts by 117.29 service providers with a minimum amount of district 117.30 administration; 117.31 (2) allow districts to bill the state for certain types of 117.32 special education and regular education services as provided by 117.33 law; 117.34 (3) provide flexibility for the types of services that are 117.35 provided for children placed out of the home, including day 117.36 treatment services; 118.1 (4) allow the commissioner to track the type, cost, and 118.2 quality of services provided for children placed out of the 118.3 home; 118.4 (5) conform existing special education and proposed regular 118.5 education billing procedures; 118.6 (6) provide a uniform reporting standard of per diem rates; 118.7 (7) determine allowable expenses and maximum reimbursement 118.8 rates for the state reimbursement of care and treatment services 118.9 according to section 124D.701; and 118.10 (8) provide a process for the district to appeal to the 118.11 commissioner tuition bills submitted to districts and to the 118.12 state. 118.13 Sec. 68. Minnesota Statutes 1998, section 126C.44, is 118.14 amended to read: 118.15 126C.44 [CRIME-RELATED COSTS LEVY.] 118.16For taxes levied in 1991 and subsequent years, payable in118.171992 and subsequent years,Each district may make a levy on all 118.18 taxable property located within the district for the purposes 118.19 specified in this subdivision. The maximum amount which may be 118.20 levied for all costs under this subdivision shall be equal to 118.21$1.50$2 multiplied by the population of the school district. 118.22 For purposes of this subdivision, "population" of the school 118.23 district means the same as contained in section 275.14. The 118.24 proceeds of the levy must be used for directly funding the 118.25 following purposes or for reimbursing the cities and counties 118.26 who contract with the district for the following purposes: (1) 118.27 to pay the costs incurred for the salaries, benefits, and 118.28 transportation costs of peace officers and sheriffs for liaison 118.29 services in the district's middle and secondary schools; (2) to 118.30 pay the costs for a drug abuse prevention program as defined in 118.31 Minnesota Statutes 1991 Supplement, section 609.101, subdivision 118.32 3, paragraph (f), in the elementary schools;or(3) to pay the 118.33 costs for a gang resistance education training curriculum in the 118.34 middle schools; or (4) to pay the costs for other crime 118.35 prevention and drug abuse and violence prevention measures taken 118.36 by the school district. The district must initially attempt to 119.1 contract fortheseservices to be provided by peace officers or 119.2 sheriffs with the police department of each city or the 119.3 sheriff's department of the county within the district 119.4 containing the school receiving the services. If a local police 119.5 department or a county sheriff's department does not wish to 119.6 provide the necessary services, the district may contract for 119.7 these services with any other police or sheriff's department 119.8 located entirely or partially within the school district's 119.9 boundaries. The levy authorized under this subdivision is not 119.10 included in determining the school district's levy limitations. 119.11 Sec. 69. [127A.11] [MONITOR MEDICAL ASSISTANCE SERVICES 119.12 FOR DISABLED STUDENTS.] 119.13 The commissioner of children, families, and learning, in 119.14 cooperation with the commissioner of human services, shall 119.15 monitor the costs of health-related, special education services 119.16 provided by public schools. 119.17 (Effective Date: Section 69 (127A.11) is effective July 1, 119.18 2000.) 119.19 Sec. 70. Minnesota Statutes 1998, section 127A.47, 119.20 subdivision 2, is amended to read: 119.21 Subd. 2. [REPORTING; REVENUE FOR HOMELESS.] For all school 119.22 purposes, unless otherwise specifically provided by law, a 119.23 homeless pupil is a resident of the school districtin which the119.24homeless shelter or other program, center, or facility assisting119.25the homeless pupil or the pupil's family is locatedthat enrolls 119.26 the pupil. 119.27 Sec. 71. Minnesota Statutes 1998, section 241.021, 119.28 subdivision 1, is amended to read: 119.29 Subdivision 1. [SUPERVISION OVER CORRECTIONAL 119.30 INSTITUTIONS.] (1) The commissioner of corrections shall inspect 119.31 and license all correctional facilities throughout the state, 119.32 whether public or private, established and operated for the 119.33 detention and confinement of persons detained or confined 119.34 therein according to law except to the extent that they are 119.35 inspected or licensed by other state regulating agencies. The 119.36 commissioner shall promulgate pursuant to chapter 14, rules 120.1 establishing minimum standards for these facilities with respect 120.2 to their management, operation, physical condition, and the 120.3 security, safety, health, treatment, and discipline of persons 120.4 detained or confined therein. Commencing September 1, 1980, no 120.5 individual, corporation, partnership, voluntary association, or 120.6 other private organization legally responsible for the operation 120.7 of a correctional facility may operate the facility unless 120.8 licensed by the commissioner of corrections. The commissioner 120.9 shall review the correctional facilities described in this 120.10 subdivision at least once every biennium, except as otherwise 120.11 provided herein, to determine compliance with the minimum 120.12 standards established pursuant to this subdivision. The 120.13 commissioner shall grant a license to any facility found to 120.14 conform to minimum standards or to any facility which, in the 120.15 commissioner's judgment, is making satisfactory progress toward 120.16 substantial conformity and the interests and well-being of the 120.17 persons detained or confined therein are protected. The 120.18 commissioner may grant licensure up to two years. The 120.19 commissioner shall have access to the buildings, grounds, books, 120.20 records, staff, and to persons detained or confined in these 120.21 facilities. The commissioner may require the officers in charge 120.22 of these facilities to furnish all information and statistics 120.23 the commissioner deems necessary, at a time and place designated 120.24 by the commissioner. The commissioner may require that any or 120.25 all such information be provided through the department of 120.26 corrections detention information system. The education program 120.27 offered in a correctional facility for the detention or 120.28 confinement of juvenile offenders must be approved by the 120.29 commissioner of children, families, and learning before the 120.30 commissioner of corrections may grant a license to the facility. 120.31 (2) Any state agency which regulates, inspects, or licenses 120.32 certain aspects of correctional facilities shall, insofar as is 120.33 possible, ensure that the minimum standards it requires are 120.34 substantially the same as those required by other state agencies 120.35 which regulate, inspect, or license the same aspects of similar 120.36 types of correctional facilities, although at different 121.1 correctional facilities. 121.2 (3) Nothing in this section shall be construed to limit the 121.3 commissioner of corrections' authority to promulgate rules 121.4 establishing standards of eligibility for counties to receive 121.5 funds under sections 401.01 to 401.16, or to require counties to 121.6 comply with operating standards the commissioner establishes as 121.7 a condition precedent for counties to receive that funding. 121.8 (4) When the commissioner finds that any facility described 121.9 in clause (1), except foster care facilities for delinquent 121.10 children and youth as provided in subdivision 2, does not 121.11 substantially conform to the minimum standards established by 121.12 the commissioner and is not making satisfactory progress toward 121.13 substantial conformance, the commissioner shall promptly notify 121.14 the chief executive officer and the governing board of the 121.15 facility of the deficiencies and order that they be remedied 121.16 within a reasonable period of time. The commissioner may by 121.17 written order restrict the use of any facility which does not 121.18 substantially conform to minimum standards to prohibit the 121.19 detention of any person therein for more than 72 hours at one 121.20 time. When, after due notice and hearing, the commissioner 121.21 finds that any facility described in this subdivision, except 121.22 county jails and lockups as provided in sections 641.26, 642.10, 121.23 and 642.11, does not conform to minimum standards, or is not 121.24 making satisfactory progress toward substantial compliance 121.25 therewith, the commissioner may issue an order revoking the 121.26 license of that facility. After revocation of its license, that 121.27 facility shall not be used until its license is renewed. When 121.28 the commissioner is satisfied that satisfactory progress towards 121.29 substantial compliance with minimum standard is being made, the 121.30 commissioner may, at the request of the appropriate officials of 121.31 the affected facility supported by a written schedule for 121.32 compliance, grant an extension of time for a period not to 121.33 exceed one year. 121.34 (5) As used in this subdivision, "correctional facility" 121.35 means any facility, including a group home, having a residential 121.36 component, the primary purpose of which is to serve persons 122.1 placed therein by a court, court services department, parole 122.2 authority, or other correctional agency having dispositional 122.3 power over persons charged with, convicted, or adjudicated to be 122.4 guilty or delinquent. 122.5 (Effective Date: Section 71 (241.021, subdivision 1) is 122.6 effective July 1, 2000.) 122.7 Sec. 72. Minnesota Statutes 1998, section 245A.04, is 122.8 amended by adding a subdivision to read: 122.9 Subd. 11. [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 122.10 education program offered in a residential or nonresidential 122.11 program, except for child care, foster care, or services for 122.12 adults, must be approved by the commissioner of children, 122.13 families, and learning before the commissioner of human services 122.14 may grant a license to the program. 122.15 (Effective Date: Section 72 (245.04, subdivision 11) is 122.16 effective July 1, 2000). 122.17 Sec. 73. Laws 1993, chapter 224, article 3, section 32, as 122.18 amended by Laws 1998, chapter 398, article 2, section 47, is 122.19 amended to read: 122.20 Sec. 32. [ASL GUIDELINES.] 122.21 (a) In determining appropriate licensure requirements for 122.22 teachers of deaf and hard of hearing students under Minnesota 122.23 Statutes, section125.189122A.28, subdivision 1, the board of 122.24 teaching shall develop the requirements according to the 122.25 guidelines described in this section. 122.26 (b) Each teacher must complete the American sign language 122.27 sign communication proficiency interview or a comparable 122.28 American sign language evaluation that the board of teaching, 122.29 the Minnesota association of deaf citizens, and the Minnesota 122.30 council for the hearing impaired accept as a means for 122.31 establishing the teacher's baseline level of American sign 122.32 language skills. A teacher shall not be charged for this 122.33 evaluation. 122.34 (c) Each teacher must complete 60 continuing education 122.35 credits in American sign language, American sign language 122.36 linguistics, or deaf culture for every 120 continuing education 123.1 credits the teacher is required to complete to renew a teaching 123.2 license. 123.3 (d) In order to obtain an initial license to teach deaf and 123.4 hard of hearing students, or to apply for a Minnesota teaching 123.5 license, after being licensed to teach in another state, a 123.6 person must demonstrate in the sign communication proficiency 123.7 interview an intermediate plus level of proficiency in American 123.8 sign language. 123.9 (e) Each teacher applying to renew a teaching license must 123.10 take the American sign language sign communication proficiency 123.11 interview or a comparable American sign language evaluation 123.12 every five years until the teacher demonstrates a minimum, or 123.13 survival plus, level of proficiency in American sign language. 123.14 (f) A teacher working directly with students whose primary 123.15 language is American sign language should demonstrate at least 123.16 an advanced level of proficiency in American sign language. The 123.17 board should not consider a minimum, or survival plus, level of 123.18 proficiency adequate for providing direct instruction to 123.19 students whose primary language is American sign language. 123.20 (g) To renew a teaching license, a teacher must comply with 123.21 paragraphs (c) and (e) in addition to other applicable board 123.22 requirements. A teacher's ability to demonstrate a minimum, or 123.23 survival plus, level of proficiency in American sign language is 123.24 not a condition for renewing the teacher's license. 123.25 (h) A teacher who demonstrates an increased proficiency in 123.26 American sign language skill in the American sign language sign 123.27 communication proficiency interview or a comparable American 123.28 sign language evaluation shall receive credit toward completing 123.29 the requirements of paragraph (c). The number of continuing 123.30 education credits the teacher receives is based on the teacher's 123.31 increased level of proficiency from the teacher's baseline level: 123.32 (1) 35 continuing education credits for demonstrating an 123.33 intermediate level of proficiency; 123.34 (2) 40 continuing education credits for demonstrating an 123.35 intermediate plus level of proficiency; 123.36 (3) 45 continuing education credits for demonstrating an 124.1 advanced level of proficiency; 124.2 (4) 50 continuing education credits for demonstrating an 124.3 advanced plus level of proficiency; 124.4 (5) 55 continuing education credits for demonstrating a 124.5 superior level of proficiency; and 124.6 (6) 60 continuing education credits for demonstrating a 124.7 superior plus level of proficiency. 124.8 (i) This section shall not apply to teachers of oral/aural 124.9 deaf education. 124.10 Sec. 74. Laws 1997, First Special Session chapter 4, 124.11 article 2, section 48, is amended to read: 124.12 Sec. 48. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 124.13 HOMELESS CHILDREN.] 124.14 A school district or a nonprofit entity contracting with a 124.15 school district to provide education and transition services for 124.16 homeless children is eligible for a matching grant for capital 124.17 facilities which serve homeless children and their families. 124.18 Grant proceeds may be used to design, furnish, equip, acquire, 124.19 repair, or construct a facility for providing education and 124.20 transition services for homeless pupils. To obtain a grant, a 124.21 school district or nonprofit entity must submit an application 124.22 to the commissioner of children, families, and learning in the 124.23 form and manner the commissioner establishes. Grants must be 124.24 matched by $1 of nonstate money for every$1$2 of grant money 124.25 received. The commissioner shall take into consideration the 124.26 number of concentration of homeless children served by a school 124.27 district when awarding grants. The commissioner may award 124.28 matching grants of up to $500,000 per school district. 124.29 Sec. 75. Laws 1997, First Special Session chapter 4, 124.30 article 2, section 51, subdivision 29, as amended by Laws 1998, 124.31 chapter 398, article 2, section 52, is amended to read: 124.32 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 124.33 the first grade preparedness program under Minnesota Statutes, 124.34 section 124.2613, and for school sites that have provided a 124.35 full-day kindergarten option for kindergarten students enrolled 124.36 in fiscal years 1996 and 1997: 125.1 $5,000,000 ..... 1998 125.2 $6,500,000 ..... 1999 125.3 (b) $4,200,000 in fiscal year 1998 must be distributed 125.4 according to Minnesota Statutes, section 124.2613, subdivision 125.5 3, and $4,200,000 in fiscal year 1999 must be distributed 125.6 according to Minnesota Statutes, section 124D.081, subdivision 3. 125.7 (c) $800,000 in fiscal year 1998 must be divided equally 125.8 among the four geographic regions defined in Minnesota Statutes, 125.9 section 124.2613, subdivision 3, and $800,000 in fiscal year 125.10 1999 must be divided equally among the four geographic regions 125.11 defined in Minnesota Statutes, section 124D.081, subdivision 3, 125.12 and must first be used to provide funding for school sites that 125.13 offered an optional full-day kindergarten program during the 125.14 1996-1997 school year, but did not receive funding for fiscal 125.15 year 1997 under Minnesota Statutes, section 124.2613. To be a 125.16 qualified site, licensed teachers must have taught the optional 125.17 full-day kindergarten classes. A district that charged a fee 125.18 for students participating in an optional full-day program is 125.19 eligible to receive the grant to provide full-day kindergarten 125.20 for all students as required by Minnesota Statutes, section 125.21124.2613124D.08, subdivision 4. Districts with eligible sites 125.22 must apply to the commissioner of children, families, and 125.23 learning for a grant. 125.24(c) This appropriation must first be used to fund programs125.25operating during the 1996-1997 school year under paragraph (b)125.26and Minnesota Statutes, section 124.2613.Any remaining funds 125.27 may be used to expand the number of sites providing first grade 125.28 preparedness programs according to Minnesota Statutes, section 125.29 124D.081, subdivision 3. 125.30 (d) $1,500,000 in fiscal year 1999 shall be divided equally 125.31 among the four geographic regions defined in Minnesota Statutes, 125.32 section 124D.081, subdivision 3, and must first be used to 125.33 eliminate aid proration for sites qualifying under paragraphs 125.34 (b) and (c). Any remaining funds may be used to expand the 125.35 number of sites providing first grade preparedness programs 125.36 according to Minnesota Statutes, section 124.2613, subdivision 3. 126.1 (Effective Date: Section 75 (Laws 1997, First Special 126.2 Session chapter 4, article 2, section 51, subdivision 29) is 126.3 effective the day following final enactment.) 126.4 Sec. 76. Laws 1998, chapter 398, article 2, section 53, is 126.5 amended to read: 126.6 Sec. 53. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 126.7 AND SERVICES.] 126.8 (a) The state board of educationmustshall amendallthe 126.9 rules in paragraph (c) relating to providing special instruction 126.10 and services to children with a disability so that the rules do 126.11 not impose requirements that exceed federal law.Consistent126.12with the report from the commissioner to compare federal and126.13state special education law, the state board may use the126.14expedited process under Minnesota Statutes 1997, section 14.389,126.15to amend these rules.126.16 (b) As of July 1, 1999,anythe rules in paragraph (c) 126.17 relating to providing special instruction and services to 126.18 children with a disability are invalid to the extent they exceed 126.19 the requirements in federal law unless a law is enacted before 126.20 July 1, 1999, indicating the intent of the state to exceed one 126.21 or more federal requirements. 126.22 (c) The state board shall amend the following rules 126.23 according to this section: Minnesota Rules, parts 3525.0200; 126.24 3525.0550; 3525.1100, subpart 2, item D; 3525.1329; 3525.2325; 126.25 3525.2385; 3525.2470; 3525.2550; 3525.2750; 3525.2900; 126.26 3525.3300; and 3525.3700. 126.27 Sec. 77. [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 126.28 SYSTEM.] 126.29 The commissioner of children, families, and learning shall 126.30 design a uniform billing system according to Minnesota Statutes, 126.31 section 125A.80. In designing a system, the commissioner shall 126.32 seek the input from the appropriate users of the billing system. 126.33 The commissioner shall implement a uniform billing system 126.34 for education services for children placed out of the home, 126.35 according to Minnesota Statutes, section 125A.80, by July 1, 126.36 2000. The commissioner shall provide training to school 127.1 districts on the uniform billing system. 127.2 Sec. 78. [COMMUNITY INTERVENTION AND PREVENTION GRANTS.] 127.3 Subdivision 1. [GRANT PROGRAM.] The commissioner of 127.4 children, families, and learning shall establish a community 127.5 intervention and prevention grant program for fiscal year 2000 127.6 for grants to nonprofit organizations, school districts or 127.7 school sites, or other community groups to provide 127.8 education-related services to at-risk children and their 127.9 families. Grants are available to programs that: 127.10 (1) enhance youth outreach services and link children to 127.11 activities, programs, and clubs outside of the regular school 127.12 day or year; 127.13 (2) create partnerships between culturally based community 127.14 organizations, parents, and school sites; 127.15 (3) provide parent and community support for families with 127.16 deaf or hard-of-hearing children; 127.17 (4) provide mentoring, tutoring, and early education 127.18 development for at-risk children, children who speak English as 127.19 a second language, or children with disabilities; 127.20 (5) provide services to children and their families who 127.21 require case management and counseling services due to 127.22 educational barriers related to economics, language, 127.23 transportation, illness, isolation, or disability; 127.24 (6) designate an individual teacher to provide family 127.25 connection services for children that emphasizes each individual 127.26 child's unique learning and development needs; 127.27 (7) establish community-based education programs through a 127.28 collaboration of the local school district, city, and 127.29 community-based organizations; or 127.30 (8) assist newly arrived immigrants ages 12 to 24 in 127.31 becoming literate and acquiring vocational skills. 127.32 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 127.33 school or school district, a nonprofit community-based 127.34 organization, a city, or a collaboration of one or more of these 127.35 groups. 127.36 Subd. 3. [APPLICATION PROCESS.] To obtain a grant, an 128.1 applicant must submit an application to the commissioner in the 128.2 form and manner established by the commissioner. The 128.3 application must describe how the applicant will meet one or 128.4 more of the outcomes described in subdivision 1. 128.5 Subd. 4. [GRANT AWARDS.] The commissioner may award grants 128.6 to applicants who meet the requirements of this section. The 128.7 commissioner must base the amount of the grant on the number of 128.8 children and families expected to participate in the program. 128.9 Sec. 79. [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 128.10 EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 128.11 FACILITIES.] 128.12 Subdivision 1. [TASK FORCE MEMBERSHIP.] The commissioner 128.13 of children, families, and learning shall convene a task force 128.14 to make recommendations on a system to approve education 128.15 programs serving children at care and treatment facilities, 128.16 including detention facilities. The task force shall be chaired 128.17 by a representative of the department of children, families, and 128.18 learning and, at a minimum, must include representatives from 128.19 each of the following organizations: the department of human 128.20 services, the department of corrections, the Minnesota school 128.21 boards association, the Minnesota association of school 128.22 administrators, Education Minnesota, association of Minnesota 128.23 counties, Minnesota county attorney association, conference of 128.24 chief judges, and the Minnesota council of child caring agencies. 128.25 By February 1, 2000, the commissioner shall submit the task 128.26 force's recommendations to the education committees of the 128.27 legislature. The task force sunsets on February 1, 2000. 128.28 Subd. 2. [RECOMMENDATIONS TO THE COMMISSIONER OF CHILDREN, 128.29 FAMILIES, AND LEARNING.] The task force shall consider the 128.30 following in making recommendations to the department of 128.31 children, families, and learning to implement a system to 128.32 approve education programs serving children at care and 128.33 treatment facilities, including detention facilities: 128.34 (1) minimal education standards consistent with state 128.35 graduation requirements that meet the individual needs of 128.36 children ages 6 to 21 served at care and treatment facilities, 129.1 unless the child has withdrawn from school or has received a 129.2 diploma; 129.3 (2) minimal average daily hour of education instruction; 129.4 (3) that state-approved education programs will employ or 129.5 contract with licensed teachers or community experts as defined 129.6 by the state board of teaching; 129.7 (4) how the education program will work together with the 129.8 district that the facility is located in and the district of 129.9 residence to provide or contract for education services when 129.10 possible; 129.11 (5) uniform educational assessment and screening procedures 129.12 to be used at the care and treatment facility before the child's 129.13 educational program can begin; 129.14 (6) that educational plans, based on the assessment of the 129.15 child, will be used to determine the educational services for 129.16 the child placed in a care and treatment facility; 129.17 (7) appropriate and consistent educational services to be 129.18 implemented related to the type of facility and placement of the 129.19 child; 129.20 (8) the level of monitoring and enforcement by the 129.21 department of children, families, and learning to ensure the 129.22 necessary oversight of the educational program; 129.23 (9) uniform procedures for transferring student records, 129.24 which are consistent with state and federal data practices laws; 129.25 (10) how the educational needs of the child will be 129.26 considered in the placement of the child; 129.27 (11) appropriate timelines for the department of children, 129.28 families, and learning to approve initial and continuing 129.29 education programs; and 129.30 (12) whether separate requirements are needed for 129.31 facilities that provide education services through the school 129.32 district and for facilities that provide educational services 129.33 without the assistance of a school district. 129.34 Sec. 80. [COMMISSIONER TO RECOMMEND OPTIONS ON SPECIAL 129.35 EDUCATION FUNDING FORMULAS.] 129.36 The commissioner of children, families, and learning shall 130.1 make recommendations to the legislature about different options 130.2 for a pupil-based special education funding formula. The 130.3 commissioner shall consult with special education stake-holders 130.4 and with other states that have adopted a pupil-based special 130.5 education funding formula. The commissioner shall consider the 130.6 following in examining a pupil-based special education funding 130.7 formula that: 130.8 (1) minimizes the distributional effect of various 130.9 pupil-based formulas as compared to the current formula; 130.10 (2) minimizes data requirements and recordkeeping by 130.11 districts; 130.12 (3) provides comparable resources for comparable students; 130.13 (4) provides districts with flexibility to deal with unique 130.14 conditions in a cost-effective manner; 130.15 (5) minimizes the incentive for districts to over-identify 130.16 students for special services or to classify students in a 130.17 higher cost disability level; and 130.18 (6) provides basic special education funding as well as 130.19 absorbing unique excess costs. 130.20 The commissioner shall report its findings to the education 130.21 committees of the legislature by December 1, 1999. 130.22 Sec. 81. [SPECIAL EDUCATION RULES.] 130.23 The commissioner shall adopt rules to update Minnesota 130.24 Rules, chapter 3525, for special education. Provisions of this 130.25 chapter that exceed federal requirements are deemed valid for 130.26 the purposes of providing special instruction and services to 130.27 children with a disability. In addition to technical changes, 130.28 corrections, clarifications, and similarly needed revisions, 130.29 specific rules shall be modified or repealed as indicated below: 130.30 (1) to Minnesota Rules, part 3525.0200, add definition of 130.31 caseload; 130.32 (2) revise Minnesota Rules, part 3525.0550, to update role 130.33 of IEP manager; 130.34 (3) repeal Minnesota Rules, part 3525.1100, subpart 2, item 130.35 D, on parent advisory council as duplicative; 130.36 (4) to Minnesota Rules, part 3525.1329, amend eligibility 131.1 criteria for emotional or behavior disorders so that the 131.2 standards reflect severe emotional disorder and professional 131.3 standards; 131.4 (5) amend Minnesota Rules, part 3525.2325, to revise 131.5 outdated standards for students placed for care and treatment to 131.6 be compatible with related legislation; 131.7 (6) repeal Minnesota Rules, part 3525.2550, on conduct 131.8 before assessment except for subpart 2, item C; 131.9 (7) add a rule to make the responsibilities of the IEP team 131.10 for assessment, IEP development, and placement decisions 131.11 consistent with federal requirements; 131.12 (8) repeal Minnesota Rules, part 3525.2750, on educational 131.13 assessment as duplicative; 131.14 (9) repeal Minnesota Rules, part 3525.2900, on IEP 131.15 development and content except for subparts 4 and 5 on regulated 131.16 interventions; and 131.17 (10) repeal Minnesota Rules, part 3525.3300, except item B, 131.18 on contents of notice as duplicative. 131.19 Sec. 82. [SPECIAL EDUCATION RULES; EXPEDITED PROCESS.] 131.20 Beginning no later than July 1, 1999, the commissioner 131.21 shall amend Minnesota Rules, chapter 3525, for special education 131.22 using the expedited process under Minnesota Statutes 1998, 131.23 section 14.389. In addition to technical changes, corrections, 131.24 clarifications, and similarly needed revisions, specific rules 131.25 shall be modified or repealed as indicated below: 131.26 (1) repeal Minnesota Rules, part 3525.0200, subpart 6a, on 131.27 definition of IEP; 131.28 (2) repeal Minnesota Rules, part 3525.0200, subpart 11a, on 131.29 definition of parent; 131.30 (3) amend Minnesota Rules, part 3525.0750, to include 131.31 children enrolled in nonpublic schools for child find purposes; 131.32 (4) amend Minnesota Rules, part 3525.0800, subpart 8, on 131.33 district responsibility for choice options in accordance with 131.34 legislation; 131.35 (5) amend Minnesota Rules, part 3525.0800, subpart 9, on 131.36 district responsibility for upper age limit in accordance with 132.1 legislation; 132.2 (6) repeal Minnesota Rules, part 3525.1150; 132.3 (7) amend Minnesota Rules, part 3525.1310, to add program 132.4 coordination and due process facilitation to list of 132.5 reimbursable activities; 132.6 (8) amend Minnesota Rules, part 3525.1325, to revise 132.7 eligibility criteria for autism to reflect professional 132.8 standards; 132.9 (9) amend Minnesota Rules, part 3525.1327, to make minor 132.10 revisions necessary to update eligibility criteria for 132.11 deaf-blindness; 132.12 (10) amend Minnesota Rules, part 3525.1331, to make minor 132.13 revisions necessary to update eligibility criteria for deaf and 132.14 hard of hearing; 132.15 (11) amend Minnesota Rules, part 3525.1333, to revise 132.16 eligibility criteria for cognitive impairment to reflect 132.17 professional standards; 132.18 (12) amend Minnesota Rules, part 3525.1335, to revise 132.19 eligibility criteria for other health-impaired to reflect 132.20 professional standards; 132.21 (13) amend Minnesota Rules, part 3525.1337, to make minor 132.22 revisions necessary to update eligibility criteria for physical 132.23 impairment; 132.24 (14) amend Minnesota Rules, part 3525.1341, to make minor 132.25 revisions necessary to update eligibility criteria for specific 132.26 learning disability; 132.27 (15) amend Minnesota Rules, part 3525.1343, to make minor 132.28 revisions necessary to update eligibility criteria for speech 132.29 and language impairments; 132.30 (16) amend Minnesota Rules, part 3525.1345, to make minor 132.31 revisions necessary to update eligibility criteria for blind and 132.32 vision impaired; 132.33 (17) amend Minnesota Rules, part 3525.1350, to make minor 132.34 revisions necessary to update eligibility criteria for early 132.35 childhood: special education; 132.36 (18) amend Minnesota Rules, part 3525.1352, to make minor 133.1 revisions necessary to update eligibility criteria for 133.2 developmental adapted physical education: special education; 133.3 (19) amend Minnesota Rules, part 3525.1354, to repeal 133.4 subpart 2 to drop documentation requirement on override 133.5 decisions; 133.6 (20) repeal Minnesota Rules, part 3525.1356, on exit 133.7 procedures; 133.8 (21) amend Minnesota Rules, part 3525.2335, to make minor 133.9 revisions to update standards for early childhood program 133.10 options, and repeal subpart 2, item C; 133.11 (22) amend Minnesota Rules, part 3525.2340, to revise 133.12 caseload standard for young children to clarify how caseload is 133.13 determined and to reflect supervision and safety needs of very 133.14 small children in various settings; 133.15 (23) amend Minnesota Rules, part 3525.2405, to repeal 133.16 subparts 2 and 3 on reimbursement standards for directors of 133.17 special education; 133.18 (24) repeal Minnesota Rules, part 3525.2420, on variance 133.19 request for director of special education; 133.20 (25) repeal Minnesota Rules, part 3525.2650, as duplicative 133.21 notice requirements; 133.22 (26) repeal Minnesota Rules, part 3525.3000, on periodic 133.23 reviews and documentation requirement; 133.24 (27) repeal Minnesota Rules, part 3525.3150, as duplicative 133.25 diploma requirements; 133.26 (28) repeal Minnesota Rules, part 3525.3200, as duplicative 133.27 notice requirement; 133.28 (29) amend Minnesota Rules, part 3525.3500, to repeal 133.29 duplicative notice requirements and mandate for districts to 133.30 initiate a hearing when refusing request for assessment; and 133.31 (30) amend Minnesota Rules, parts 3525.3800 to 3525.4700, 133.32 on due process hearings to make them compatible with state and 133.33 federal legislation. 133.34 Sec. 83. [APPROPRIATIONS.] 133.35 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 133.36 LEARNING.] The sums indicated in this section are appropriated 134.1 from the general fund to the department of children, families, 134.2 and learning for the fiscal years designated. 134.3 Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 134.4 For grants to American Indian language and culture education 134.5 programs according to Minnesota Statutes, section 124D.81, 134.6 subdivision 1: 134.7 $730,000 ..... 2000 134.8 $730,000 ..... 2001 134.9 The 2000 appropriation includes $73,000 for 1999 and 134.10 $657,000 for 2000. 134.11 The 2001 appropriation includes $73,000 for 2000 and 134.12 $657,000 for 2001. 134.13 Any balance in the first year does not cancel but is 134.14 available in the second year. 134.15 Subd. 3. [AMERICAN INDIAN EDUCATION.] (a) For certain 134.16 American Indian education programs in school districts: 134.17 $175,000 ..... 2000 134.18 $175,000 ..... 2001 134.19 The 2000 appropriation includes $17,000 for 1999 and 134.20 $158,000 for 2000. 134.21 The 2001 appropriation includes $17,000 for 2000 and 134.22 $158,000 for 2001. 134.23 (b) These appropriations are available for expenditure with 134.24 the approval of the commissioner of the department of children, 134.25 families, and learning. 134.26 (c) The commissioner must not approve the payment of any 134.27 amount to a school district or school under this subdivision 134.28 unless that school district or school is in compliance with all 134.29 applicable laws of this state. 134.30 (d) Up to the following amounts may be distributed to the 134.31 following schools and school districts for each fiscal year: 134.32 $54,800 Pine Point School; $9,800 to independent school district 134.33 No. 166, Cook county; $14,900 to independent school district No. 134.34 432, Mahnomen; $14,200 to independent school district No. 435, 134.35 Waubun; $42,200 to independent school district No. 707, Nett 134.36 Lake; and $39,100 to independent school district No. 38, Red 135.1 Lake. These amounts must be spent only for the benefit of 135.2 American Indian pupils and to meet established state educational 135.3 standards or statewide requirements. 135.4 (e) Before a district or school can receive money under 135.5 this subdivision, the district or school must submit, to the 135.6 commissioner, evidence that it has complied with the uniform 135.7 financial accounting and reporting standards act, Minnesota 135.8 Statutes, sections 123B.75 to 123B.83. 135.9 Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION 135.10 GRANTS.] For American Indian post-secondary preparation grants 135.11 according to Minnesota Statutes, section 124D.85: 135.12 $982,000 ..... 2000 135.13 $982,000 ..... 2001 135.14 Any balance in the first year does not cancel but is 135.15 available in the second year. 135.16 Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American 135.17 Indian scholarships according to Minnesota Statutes, section 135.18 124D.84: 135.19 $1,875,000 ..... 2000 135.20 $1,875,000 ..... 2001 135.21 Any balance in the first year does not cancel but is 135.22 available in the second year. 135.23 Subd. 6. [INDIAN TEACHER PREPARATION GRANTS.] (a) For 135.24 joint grants to assist Indian people to become teachers: 135.25 $190,000 ..... 2000 135.26 $190,000 ..... 2001 135.27 (b) Up to $70,000 each year is for a joint grant to the 135.28 University of Minnesota at Duluth and independent school 135.29 district No. 709, Duluth. 135.30 (c) Up to $40,000 each year is for a joint grant to each of 135.31 the following: 135.32 (1) Bemidji state university and independent school 135.33 district No. 38, Red Lake; 135.34 (2) Moorhead state university and a school district located 135.35 within the White Earth reservation; and 135.36 (3) Augsburg college, independent school district No. 625, 136.1 St. Paul, and special school district No. 1, Minneapolis. 136.2 (d) Money not used for students at one location may be 136.3 transferred for use at another location. 136.4 (e) Any balance in the first year does not cancel but is 136.5 available in the second year. 136.6 Subd. 7. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 136.7 school aid according to Minnesota Statutes, section 124D.83: 136.8 $2,706,000 ..... 2000 136.9 $2,790,000 ..... 2001 136.10 The 2000 appropriation includes $283,000 for 1999 and 136.11 $2,423,000 for 2000. 136.12 The 2001 appropriation includes $269,000 for 2000 and 136.13 $2,521,000 for 2001. 136.14 Subd. 8. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 136.15 early childhood family education programs at tribal contract 136.16 schools: 136.17 $68,000 ..... 2000 136.18 $68,000 ..... 2001 136.19 Subd. 9. [MAGNET SCHOOL GRANTS.] For magnet school and 136.20 program grants: 136.21 $1,750,000 ..... 2000 136.22 $1,750,000 ..... 2001 136.23 These amounts may be used for magnet school programs 136.24 according to Minnesota Statutes, section 124D.88. 136.25 Subd. 10. [INTEGRATION PROGRAMS.] For grants according to: 136.26 minority fellowship grants according to Laws 1994, chapter 647, 136.27 article 8, section 29; minority teacher incentives according to 136.28 Minnesota Statutes, section 122A.65; teachers of color grants 136.29 according to Minnesota Statutes, section 122A.64; and cultural 136.30 exchange grants according to Minnesota Statutes, section 124D.89: 136.31 $1,000,000 ..... 2000 136.32 $1,000,000 ..... 2001 136.33 Any balance in the first year does not cancel but is 136.34 available in the second year. 136.35 In awarding teacher of color grants, priority must be given 136.36 to districts that have students who are currently in the process 137.1 of completing their academic program. 137.2 Subd. 11. [SPECIAL EDUCATION AID.] For special education 137.3 aid according to Minnesota Statutes, section 125A.75: 137.4 $432,451,000 ..... 2000 137.5 $436,834,000 ..... 2001 137.6 The 2000 appropriation includes $39,330,000 for 1999 and 137.7 $393,151,000 for 2000. 137.8 The 2001 appropriation includes $43,683,000 for 2000 and 137.9 $393,151,000 for 2001. 137.10 Subd. 12. [AID FOR CHILDREN WITH A DISABILITY.] For aid 137.11 according to Minnesota Statutes, section 125A.75, subdivision 3, 137.12 for children with a disability placed in residential facilities 137.13 within the district boundaries for whom no district of residence 137.14 can be determined: 137.15 $ 443,000 ..... 2000 137.16 $1,064,000 ..... 2001 137.17 If the appropriation for either year is insufficient, the 137.18 appropriation for the other year is available. Any balance in 137.19 the first year does not cancel but is available in the second 137.20 year. 137.21 Subd. 13. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 137.22 teacher travel for home-based services according to Minnesota 137.23 Statutes, section 125A.75, subdivision 1: 137.24 $133,000 ..... 2000 137.25 $139,000 ..... 2001 137.26 The 2000 appropriation includes $11,000 for 1999 and 137.27 $122,000 for 2000. 137.28 The 2001 appropriation includes $13,000 for 2000 and 137.29 $126,000 for 2001. 137.30 Subd. 14. [SPECIAL EDUCATION EXCESS COST AID.] For excess 137.31 cost aid: 137.32 $56,659,000 ..... 2000 137.33 $84,838,000 ..... 2001 137.34 The 2000 appropriation includes $5,666,000 for 1999 and 137.35 $50,993,000 for 2000. 137.36 The 2001 appropriation includes $8,484,000 for 2000 and 138.1 $76,354,000 for 2001. 138.2 Subd. 15. [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 138.3 DISABILITIES.] For aid for school-to-work programs for pupils 138.4 with disabilities according to Minnesota Statutes, section 138.5 124D.454: 138.6 $8,892,000 ..... 2000 138.7 $8,968,000 ..... 2001 138.8 The 2000 appropriation includes $808,000 for 1999 and 138.9 $8,084,000 for 2000. 138.10 The 2001 appropriation includes $898,000 for 2000 and 138.11 $8,070,000 for 2001. 138.12 Subd. 16. [SPECIAL PROGRAMS EQUALIZATION AID.] For special 138.13 education levy equalization aid according to Minnesota Statutes, 138.14 section 125A.77: 138.15 $526,000 ..... 2000 138.16 The 2000 appropriation includes $526,000 for 1999 and $0 138.17 for 2000. 138.18 Subd. 17. [INTEGRATION AID.] For integration aid: 138.19 $37,182,000 ..... 2000 138.20 $43,787,000 ..... 2001 138.21 The 2000 appropriation includes $2,902,000 for 1999 and 138.22 $34,280,000 for 2000. 138.23 The 2001 appropriation includes $3,809,000 for 2000 and 138.24 $39,978,000 for 2001. 138.25 Subd. 18. [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 138.26 additional revenue for homeless students according to Minnesota 138.27 Statutes, section 124D.70: 138.28 $60,000 ..... 2000 138.29 $60,000 ..... 2001 138.30 The 2000 appropriation includes $6,000 for 1999 and $54,000 138.31 for 2000. 138.32 The 2001 appropriation includes $6,000 for 2000 and $54,000 138.33 for 2001. 138.34 Subd. 19. [INTERDISTRICT DESEGREGATION OR INTEGRATION 138.35 TRANSPORTATION GRANTS.] For interdistrict desegregation or 138.36 integration transportation grants under Minnesota Statutes, 139.1 section 124D.87: 139.2 $970,000 ..... 2000 139.3 $970,000 ..... 2001 139.4 Any balance in the first year does not cancel but is 139.5 available in the second year. 139.6 Subd. 20. [COMMUNITY INTERVENTION AND PREVENTION 139.7 GRANTS.] For community intervention and prevention grants: 139.8 $6,000,000 ..... 2000 139.9 Of this amount, $100,000 is for a grant to the city of St. 139.10 Louis Park for the Meadowbrook collaborative housing project; 139.11 $300,000 is for a grant to the southwest and west central 139.12 service cooperative to operate the child guide prevention 139.13 program; $500,000 is for programs for community support for 139.14 families with deaf and hard-of-hearing children; $500,000 is for 139.15 school-linked prevention and early intervention programs; 139.16 $750,000 is for the family connections program; $750,000 is for 139.17 a grant to the YMCA of metropolitan Minneapolis for the Beacons 139.18 Project; $500,000 is for grants to culturally based community 139.19 organizations to improve the education outcomes of students who 139.20 speak English as a second language; $500,000 is for grants to 139.21 organizations that provide job training programs for immigrants 139.22 ages 12 to 24; and $1,000,000 is a one-time appropriation for 139.23 adolescent parenting grants under Laws 1997, chapter 162, 139.24 article 2, section 28. 139.25 This appropriation is available until June 30, 2001. 139.26 Subd. 21. [CENTER FOR VICTIMS OF TORTURE.] For the center 139.27 for victims of torture to provide training, consultation, and 139.28 support services in public schools with significant populations 139.29 of traumatized refugee and immigrant students: 139.30 $75,000 ..... 2000 139.31 $75,000 ..... 2001 139.32 Any balance in the first year does not cancel but is 139.33 available in the second year. 139.34 Subd. 22. [GRANTS TO INDEPENDENT SCHOOL DISTRICT NO. 707, 139.35 NETT LAKE.] For grants to independent school district No. 707, 139.36 Nett Lake: 140.1 $165,000 ..... 2000 140.2 $165,000 ..... 2001 140.3 $30,000 each year is for grants to pay property and boiler 140.4 insurance premiums under Minnesota Statutes, section 466.06. 140.5 $30,000 each year is for grants to pay obligations of the 140.6 school district for unemployment compensation. The 140.7 appropriation must be paid to the appropriate state agency for 140.8 such purposes in the name of the school district. 140.9 $70,000 each year is for grants to pay for the maintenance 140.10 of school facilities. 140.11 $35,000 each year is for grants for a media specialist for 140.12 preschool through grade 6. 140.13 Subd. 23. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 140.14 HOMELESS CHILDREN.] For matching grants for education programs 140.15 serving homeless children under Laws 1997, First Special Session 140.16 chapter 4, article 2, section 48: 140.17 $1,100,000 ..... 2000 140.18 This appropriation is available until June 30, 2001. 140.19 Subd. 24. [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a 140.20 special education revenue adjustment for independent school 140.21 district No. 535, Rochester: 140.22 $150,000 ..... 2000 140.23 $ 15,000 ..... 2001 140.24 Subd. 25. [CARE AND TREATMENT INSTRUCTIONAL AID.] For care 140.25 and treatment instructional aid under Minnesota Statutes, 140.26 section 124D.701: 140.27 $2,490,000 ..... 2001 140.28 If the appropriation under this section is insufficient to 140.29 cover the expenses submitted by districts, the commissioner 140.30 shall prorate the aid to districts based on the expenses 140.31 submitted by districts. 140.32 Subd. 26. [OUT-OF-STATE TUITION.] For out-of-state tuition 140.33 under Minnesota Statutes, section 125A.79, subdivision 8: 140.34 $250,000 ..... 2001 140.35 If the appropriation under this section is insufficient to 140.36 cover the expenses submitted by districts, the commissioner 141.1 shall prorate the aid to districts based on the expenses 141.2 submitted by districts. 141.3 Subd. 27. [UNIFORM BILLING SYSTEM; TECHNICAL 141.4 ASSISTANCE.] For implementing an effective and efficient uniform 141.5 billing system for the educational costs of students placed out 141.6 of the home: 141.7 $100,000 ..... 2000 141.8 Subd. 28. [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 141.9 AND TREATMENT FACILITIES.] For developing and implementing a 141.10 system to approve education costs of students placed out of the 141.11 home: 141.12 $200,000 ..... 2000 141.13 This appropriation is available until June 30, 2001. 141.14 Subd. 29. [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 141.15 for the first-grade preparedness program under Minnesota 141.16 Statutes, section 124D.081: 141.17 $7,000,000 ..... 2000 141.18 $7,000,000 ..... 2001 141.19 For each year, the appropriation must first be used to fund 141.20 programs operating during the 1998-1999 school year, unless the 141.21 site's ranking, as determined by Minnesota Statutes, section 141.22 124D.081, subdivision 3, falls below the state average for 141.23 elementary schools. Any remaining funds may be used to expand 141.24 the number of sites according to Minnesota Statutes, section 141.25 124D.081, subdivision 3. 141.26 Subd. 30. [LITIGATION COSTS.] For paying the costs a 141.27 district incurs under Minnesota Statutes, section 125A.75, 141.28 subdivision 8: 141.29 $500,000 ..... 2000 141.30 $500,000 ..... 2001 141.31 Subd. 31. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 141.32 reimbursing serving school districts for unreimbursed eligible 141.33 expenditures attributable to children placed in the serving 141.34 school district by court action under Minnesota Statutes, 141.35 section 125A.79, subdivision 4: 141.36 $350,000 ..... 2000 142.1 $350,000 ..... 2001 142.2 Sec. 84. [REVISOR INSTRUCTION.] 142.3 In the next and subsequent editions of Minnesota Statutes 142.4 and Minnesota Rules, the revisor shall change all references to 142.5 the "Faribault academies" to the "Minnesota state academies." 142.6 Sec. 85. [REPEALER.] 142.7 Minnesota Statutes 1998, sections 124D.081, subdivision 7; 142.8 125A.76, subdivision 6; 125A.77; and 125A.79, subdivision 3, are 142.9 repealed. Laws 1995, First Special Session chapter 3, article 142.10 3, section 11; Laws 1997, First Special Session chapter 4, 142.11 article 2, section 51, subdivision 10; and Laws 1998, chapter 142.12 398, article 2, sections 53 and 57, are repealed. Minnesota 142.13 Rules, part 3525.2470, is repealed. 142.14 Sec. 86. [EFFECTIVE DATES.] 142.15 When preparing the prekindergarten through grade 12 142.16 education conference committee report for adoption by the 142.17 legislature, the revisor shall combine all effective date 142.18 notations in this article into this effective dates section. 142.19 ARTICLE 3 142.20 LIFELONG LEARNING 142.21 Section 1. Minnesota Statutes 1998, section 124D.453, 142.22 subdivision 3, is amended to read: 142.23 Subd. 3. [SECONDARY VOCATIONAL AID.] A district's 142.24 secondary vocational education aid forafiscal year 2000 equals 142.25 the lesser of: 142.26 (a)$80$42 times the district's average daily membership 142.27 in grades 10 to 12; or 142.28 (b) 25 percent of approved expenditures for the following: 142.29 (1) salaries paid to essential, licensed personnel 142.30 providing direct instructional services to students in that 142.31 fiscal year for services rendered in the district's approved 142.32 secondary vocational education programs; 142.33 (2) contracted services provided by a public or private 142.34 agency other than a Minnesota school district or cooperative 142.35 center under subdivision 7; 142.36 (3) necessary travel between instructional sites by 143.1 licensed secondary vocational education personnel; 143.2 (4) necessary travel by licensed secondary vocational 143.3 education personnel for vocational student organization 143.4 activities held within the state for instructional purposes; 143.5 (5) curriculum development activities that are part of a 143.6 five-year plan for improvement based on program assessment; 143.7 (6) necessary travel by licensed secondary vocational 143.8 education personnel for noncollegiate credit bearing 143.9 professional development; and 143.10 (7) specialized vocational instructional supplies. 143.11 (c) Up to ten percent of a district's secondary vocational 143.12 aid may be spent on equipment purchases. Districts using 143.13 secondary vocational aid for equipment purchases must report to 143.14 the department on the improved learning opportunities for 143.15 students that result from the investment in equipment. 143.16 Sec. 2. Minnesota Statutes 1998, section 124D.453, 143.17 subdivision 5, is amended to read: 143.18 Subd. 5. [AID GUARANTEE.] Notwithstanding subdivision 3, 143.19 the secondary vocational education aid for a district is not 143.20 less than the lesser of: 143.21 (a)9550 percent of the secondary vocational education aid 143.22 the district received for the previous fiscal year; or 143.23 (b) 40 percent of the approved expenditures for secondary 143.24 vocational programs included in subdivision 3, paragraph (b). 143.25 Sec. 3. Laws 1997, First Special Session chapter 4, 143.26 article 3, section 25, subdivision 6, is amended to read: 143.27 Subd. 6. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 143.28 independent school district No. 330, Heron Lake-Okabena, to 143.29 establish the Southwest Star Concept School: 143.30 $193,000 ..... 1998 143.31 This appropriation may be used for equipment, activities 143.32 beyond the classroom walls, professional planning assistance, 143.33 monitoring, evaluating, and reporting activities related to the 143.34 case study prepared in section 22. 143.35 This appropriation is available until June 30, 1999. 143.36 (Effective date: Section 3 (Laws 1997, First Special 144.1 Session chapter 4, article 3, section 25, subdivision 6) is 144.2 effective retroactive to July 1, 1997.) 144.3 Sec. 4. [APPROPRIATIONS.] 144.4 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 144.5 LEARNING.] The sums indicated in this section are appropriated 144.6 from the general fund to the department of children, families, 144.7 and learning for the fiscal years designated. 144.8 Subd. 2. [SECONDARY VOCATIONAL AID.] For secondary 144.9 vocational education aid according to Minnesota Statutes, 144.10 section 124D.453: 144.11 $7,473,000 ..... 2000 144.12 $ 702,000 ..... 2001 144.13 The 2000 appropriation includes $1,159,000 for 1999 and 144.14 $6,314,000 for 2000. 144.15 The 2001 appropriation includes $702,000 for 2000 and $0 144.16 for 2001. 144.17 Subd. 3. [YOUTH WORKS PROGRAM.] For funding youth works 144.18 programs according to Minnesota Statutes, sections 124D.37 to 144.19 124D.45: 144.20 $1,788,000 ..... 2000 144.21 $1,788,000 ..... 2001 144.22 A grantee organization may provide health and child care 144.23 coverage to the dependents of each participant enrolled in a 144.24 full-time youth works program to the extent coverage is not 144.25 otherwise provided. 144.26 Any balance in the first year does not cancel but is 144.27 available in the second year. 144.28 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 144.29 GRANTS.] For education and employment transitions programming 144.30 under Minnesota Statutes, section 124D.46: 144.31 $3,225,000 ..... 2000 144.32 $3,225,000 ..... 2001 144.33 $200,000 each year is for the development and 144.34 implementation of the ISEEK Internet-based education and 144.35 employment information system. 144.36 $1,000,000 each year is for an employer rebate program for 145.1 qualifying employers who offer youth internships to educators. 145.2 $500,000 each year is for youth entrepreneurship grants. 145.3 Of this amount, $100,000 each year is for the high school 145.4 student-run business project in independent school district No. 145.5 175, Westbrook. This appropriation shall be used for salaries, 145.6 travel, seminars, equipment, contractual expenses, and other 145.7 expenses related to providing assistance to other districts who 145.8 are starting entrepreneurship programs. Independent school 145.9 district No. 175, Westbrook, shall also work in coordination 145.10 with the commissioner to develop a directory of entrepreneurship 145.11 programs in the state. 145.12 $750,000 each year is for youth apprenticeship grants. 145.13 $300,000 each year is for grants to programs in cities of 145.14 the first class to expand the number of at-risk students 145.15 participating in school-to-work projects. 145.16 $350,000 each year is for agricultural school-to-work 145.17 grants. 145.18 $125,000 each year is to conduct a high school follow-up 145.19 survey to include first, third, and sixth year graduates of 145.20 Minnesota schools. 145.21 Subd. 5. [LEARN AND EARN GRADUATION ACHIEVEMENT 145.22 PROGRAM.] For the learn and earn graduation achievement program 145.23 under Minnesota Statutes, section 124D.32: 145.24 $1,500,000 ..... 2000 145.25 $1,500,000 ..... 2001 145.26 This appropriation is available until June 30, 2001. 145.27 Subd. 6. [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 145.28 independent school district No. 330, Heron Lake-Okabena, to 145.29 continue to develop the Southwest Star Concept School authorized 145.30 under Laws 1997, First Special Session chapter 4, article 3, 145.31 section 22: 145.32 $179,000 ..... 2000 145.33 The grant may be used to expand the school's technology 145.34 department, music and fine arts program, theater program, arts 145.35 program, and health and physical education program. 145.36 This appropriation is available until June 30, 2001. 146.1 Sec. 5. [REPEALER.] 146.2 Minnesota Statutes 1998, section 124D.453, subdivision 1, 146.3 is repealed effective July 1, 2000. 146.4 Sec. 6. [EFFECTIVE DATE.] 146.5 When preparing the prekindergarten through grade 12 146.6 education conference committee report for adoption by the 146.7 legislature, the revisor shall combine all effective date 146.8 notations in this article into this effective date section. 146.9 ARTICLE 4 146.10 FACILITIES AND TECHNOLOGY 146.11 Section 1. Minnesota Statutes 1998, section 123B.53, is 146.12 amended to read: 146.13 123B.53 [DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 146.14 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 146.15 section, the eligibledebt servicefacilities revenue of a 146.16 district is defined as follows: 146.17 (1) the amount needed to produce between five and six 146.18 percent in excess of the amount needed to meet when due the 146.19 principal and interest payments on the obligations of the 146.20 district for eligible projects according to subdivision 2, 146.21 including the amounts necessary for repayment of energy loans 146.22 according to section216C.37 or sections 298.292 to 298.298146.23 126C.40, subdivision 5, debt service loans and capital loans, 146.24 lease purchase payments under section 126C.40,subdivision146.25 subdivisions 2 and 6; Laws 1995, First Special Session chapter 146.26 3, article 5, section 19; and Laws 1997, First Special Session 146.27 chapter 4, article 4, section 30, alternative facilitieslevies146.28 revenue under section 123B.59, subdivision 5, historic building 146.29 revenue, under section 123B.64, subdivision 2; health and safety 146.30 revenue, under section 123B.57, subdivision 3; handicapped 146.31 access and fire safety revenue, under section 123B.58, 146.32 subdivision 3; building construction down payment and lease 146.33 program, under section 123B.63; building lease revenue, under 146.34 section 126C.40, subdivision 1; and cooperative building repair 146.35 revenue, under section 126C.40, subdivision 3, minus 146.36 (2) the amount of debt service excess levy reduction for 147.1 that school year calculated according to the procedure 147.2 established by the commissioner. 147.3 (b) The obligations in this paragraph are excluded from 147.4 eligibledebt servicefacilities revenue: 147.5 (1) obligations under section 123B.61; 147.6 (2) the part of debt service principal and interest paid 147.7 from the taconite environmental protection fund or northeast 147.8 Minnesota economic protection trust; 147.9 (3) obligations issued under Laws 1991, chapter 265, 147.10 article 5, section 18, as amended by Laws 1992, chapter 499, 147.11 article 5, section 24; and 147.12 (4) obligations under section 123B.62. 147.13 (c) For purposes of this section, if a preexisting school 147.14 district reorganized under sections 123A.35 to 123A.43, 123A.46, 147.15 and 123A.48 is solely responsible for retirement of the 147.16 preexisting district's bonded indebtedness, capital loans or 147.17 debt service loans,debt servicefacilities equalization aid 147.18 must be computed separately for each of the preexisting 147.19 districts. 147.20 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 147.21 district'sdebt service levyfacilities revenue qualify fordebt147.22servicefacilities equalization: 147.23 (1) debt service for repayment of principal and interest on 147.24 bonds issued before July 2, 1992; 147.25 (2) debt service for bonds refinanced after July 1, 1992, 147.26 if the bond schedule has been approved by the commissioner and, 147.27 if necessary, adjusted to reflect a 20-year maturity schedule; 147.28and147.29 (3) debt service for bonds issued after July 1, 1992, for 147.30 construction projects that have received a positive review and 147.31 comment according to section 123B.71, if the commissioner has 147.32 determined that the district has met the criteria under section 147.33 126C.69, subdivision 3, and if the bond schedule has been 147.34 approved by the commissioner and, if necessary, adjusted to 147.35 reflect a 20-year maturity schedule.; 147.36 (4) alternative facilities revenue, according to section 148.1 123B.59, subdivision 5; 148.2 (5) historic building revenue, according to section 148.3 123B.64, subdivision 2; 148.4 (6) health and safety revenue, according to section 148.5 123B.57, subdivision 3; 148.6 (7) handicapped access and fire safety revenue, according 148.7 to section 123B.58, subdivision 3; 148.8 (8) building construction and lease revenue, according to 148.9 section 123B.63, subdivision 3; 148.10 (9) building lease revenue, according to section 126C.40, 148.11 subdivision 1; and 148.12 (10) cooperative building repair revenue, according to 148.13 section 126C.40, subdivision 3. 148.14 (b) The criterion in section 126C.69, subdivision 3, 148.15 paragraph (a), clause (2), shall be considered to have been met 148.16 if the district in the fiscal year in which the bonds are 148.17 authorized at an election conducted under chapter 475:148.18(i) if grades 9 through 12 are to be served by the148.19facility, and an average of at least 66 pupils per grade in148.20these grades are served; or148.21(ii)is eligible for elementary or secondary sparsity 148.22 revenue. 148.23 (c) The criterion in section 126C.69, subdivision 3, 148.24 paragraph (a), clause (2), shall also be considered to have been 148.25 met if the construction project under review serves students in 148.26 kindergarten to grade 8. Only the debt service levy for that 148.27 portion of the facility serving students in prekindergarten to 148.28 grade 8, as determined by the commissioner, shall be eligible 148.29 for debt service equalization under this paragraph. 148.30 (d) The criterion described in section 126C.69, subdivision 148.31 3, paragraph (a), clause (9), does not apply to bonds authorized 148.32 by elections held before July 1, 1992. 148.33 (e) For the purpose of this subdivision the department 148.34 shall determine the eligibility for sparsity at the location of 148.35 the new facility, or the site of the new facility closest to the 148.36 nearest operating school if there is more than one new facility. 149.1 (f) Notwithstanding paragraphs (a) to (e), debt service for 149.2 repayment of principal and interest on bonds issued after July 149.3 1, 1997, does not qualify fordebt servicefacilities 149.4 equalization aid unless the primary purpose of the facility is 149.5 to serve students in kindergarten through grade 12. 149.6 Subd. 3. [NOTIFICATION.] A district eligible fordebt149.7servicefacilities equalization revenue under subdivision 2 must 149.8 notify the commissioner of the amount of its intendeddebt149.9servicefacilities equalization revenue calculated under 149.10 subdivision 1 for all bonds sold prior to the notification by 149.11 July 1 of the calendar year the levy is certified. 149.12 Subd. 4. [DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 149.13(a) For fiscal years 1995 and later,Thedebt servicefacilities 149.14 equalization revenue of a district equals the eligibledebt149.15servicefacilities equalization revenue minus the amount raised 149.16 by a levy often12 percent times the adjusted net tax capacity 149.17 of the district. 149.18(b) For fiscal year 1993, debt service equalization revenue149.19equals one-third of the amount calculated in paragraph (a).149.20(c) For fiscal year 1994, debt service equalization revenue149.21equals two-thirds of the amount calculated in paragraph (a).149.22 Subd. 5. [EQUALIZEDDEBT SERVICEFACILITIES LEVY.] To 149.23 obtaindebt servicefacilities equalization revenue, a district 149.24 must levy an amount not to exceed the district'sdebt service149.25 facilities equalization revenue times the lesser of one or the 149.26 ratio of: 149.27 (1) the quotient derived by dividing the adjusted net tax 149.28 capacity of the district for the year before the year the levy 149.29 is certified by theresidentadjusted pupil units in the 149.30 district for the school year ending in the year prior to the 149.31 year the levy is certified; to 149.32 (2)$4,707.50$4,000. 149.33 Subd. 6. [DEBT SERVICEFACILITIES EQUALIZATION AID.] A 149.34 district'sdebt servicefacilities equalization aid is the 149.35 difference between thedebt servicefacilities equalization 149.36 revenue and the equalizeddebt servicefacilities levy. If a 150.1 district does not levy the entire amount permitted, the 150.2 district's aid must be reduced in proportion to the amount 150.3 levied. If the amount ofdebt servicefacilities equalization 150.4 aid actually appropriated for the fiscal year in which this 150.5 calculation is made is insufficient to fully funddebt service150.6 facilities equalization aid, the commissioner shall prorate the 150.7 amount of aid across all eligible districts. 150.8 Subd. 7. [DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 150.9 SCHEDULE.]Debt serviceFacilities equalization aid must be paid 150.10as follows: 30 percent before September 15, 30 percent before150.11December 15, 30 percent before March 15, and a final payment of150.12ten percent by July 15 of the subsequent fiscal yearaccording 150.13 to section 127A.45, subdivision 10. 150.14 Subd. 8. [DEBT SERVICE PRIORITY.] Of the amount paid under 150.15 this section, the district must first allocate the amount 150.16 attributable to obligations under chapter 475. Remaining aid 150.17 may be used for the other purposes of this section. 150.18 (Effective date: Section 1 (123B.53) is effective the day 150.19 following final enactment.) 150.20 Sec. 2. Minnesota Statutes 1998, section 123B.54, is 150.21 amended to read: 150.22 123B.54 [DEBT SERVICEEQUALIZED FACILITIES APPROPRIATION.] 150.23 (a)$35,480,000 in fiscal year 1998, $38,159,000 in fiscal150.24year 1999, and $38,390,000$32,534,000 in fiscal year20002002 150.25 and each year thereafter is appropriated from the general fund 150.26 to the commissioner of children, families, and learning for 150.27 payment of debt service equalization aid under section 123B.53. 150.28 The20002002 appropriation includes$3,842,000$3,266,000 for 150.2919992001 and$34,548,000$29,268,000 for20002002. 150.30 (b) The appropriations in paragraph (a) must be reduced by 150.31 the amount of any money specifically appropriated for the same 150.32 purpose in any year from any state fund. 150.33 Sec. 3. Minnesota Statutes 1998, section 123B.57, 150.34 subdivision 1, is amended to read: 150.35 Subdivision 1. [HEALTH AND SAFETY PROGRAM.] To receive 150.36 health and safety revenue for any fiscal year a district must 151.1 submit to the commissioner an application foraid and levy151.2 revenue by the date determined by the commissioner. The 151.3 application may be for hazardous substance removal, fire and 151.4 life safety code repairs, labor and industry regulated facility 151.5 and equipment violations, and health, safety, and environmental 151.6 management, including indoor air quality management. The 151.7 application must include a health and safety program adopted by 151.8 the school district board. The program must include the 151.9 estimated cost, per building, of the program by fiscal 151.10 year. Upon approval through the adoption of a resolution by 151.11 each of a cooperative unit's member school district board and 151.12 the approval of the department of children, families, and 151.13 learning, a school district may include its proportionate share 151.14 of the costs of health and safety projects for cooperative units 151.15 in its application. 151.16 Sec. 4. Minnesota Statutes 1998, section 123B.58, 151.17 subdivision 3, is amended to read: 151.18 Subd. 3. [LEVY AUTHORITYREVENUE.] The districtmay levy151.19 is eligible for revenue up to $300,000 under this section, as 151.20 approved by the commissioner. The approved amount may belevied151.21 received over eight or fewer years. 151.22 Sec. 5. Minnesota Statutes 1998, section 123B.58, 151.23 subdivision 4, is amended to read: 151.24 Subd. 4. [LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 151.25 Notwithstanding subdivision 3, a district that has combined or 151.26 consolidated maylevyreceive revenue up to 50 percent times 151.27 $300,000 times the number of former districts that operated on 151.28 June 30, 1991, in the area that now makes up the combined or 151.29 consolidated district. The approved amount is reduced by any 151.30 amount levied under subdivision 3 in the consolidated or 151.31 combined district or in the former districts that make up the 151.32 consolidated or combined district. Levy authority under this 151.33 subdivision expires at the same time as levy authority under 151.34 subdivision 3. 151.35 (Effective date: Section 5 (123B.58, subdivision 4) is 151.36 effective the day following final enactment.) 152.1 Sec. 6. Minnesota Statutes 1998, section 123B.59, is 152.2 amended to read: 152.3 123B.59 [ALTERNATIVE FACILITIESBONDING AND LEVYREVENUE 152.4 PROGRAM.] 152.5 Subdivision 1. [TO QUALIFY.] An independent or special 152.6 school district qualifies to participate in the alternative 152.7 facilitiesbonding and levyrevenue program if the district has: 152.8 (1) more than 66 students per grade; 152.9 (2) over 1,850,000 square feet of space; 152.10 (3) average age of building space is2015 years or older; 152.11 (4) insufficient funds from projected health and safety 152.12 revenue and capital facilities revenue to meet the requirements 152.13 for deferred maintenance, to make accessibility improvements, or 152.14 to make fire, safety, or health repairs; and 152.15 (5) a ten-year facility plan approved by the commissioner 152.16 according to subdivision 2. 152.17 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 152.18 have a ten-year facility plan approved by the commissioner that 152.19 includes an inventory of projects and costs that would be 152.20 eligible for: 152.21 (1) health and safety revenue; 152.22 (2) disabled access levy; and 152.23 (3) deferred capital expenditures and maintenance projects 152.24 necessary to prevent further erosion of facilities. 152.25 (b) The school district must: 152.26 (1) annually update the plan; 152.27 (2) biennially submit a facility maintenance plan; and 152.28 (3) indicate whether the district will issue bonds to 152.29 finance the plan orlevyannually include program revenue under 152.30 the facilities equalization program, under section 123B.53, for 152.31 the costs. 152.32 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 152.33 approval of its board and the commissioner, may issue general 152.34 obligation bonds under this section to finance approved 152.35 facilities plans. Chapter 475, except sections 475.58 and 152.36 475.59, must be complied with.The district may levy under153.1subdivision 5 for the debt service revenue.The authority to 153.2 issue bonds under this section is in addition to any bonding 153.3 authority authorized by this chapter, or other law. The amount 153.4 of bonding authority authorized under this section must be 153.5 disregarded in calculating the bonding or net debt limits of 153.6 this chapter, or any other law other than section 475.53, 153.7 subdivision 4. 153.8 Subd. 3a. [INTEGRATION REVENUE.] (a) A school district 153.9 that is participating in an interdistrict magnet school program 153.10 and qualifies for revenue under subdivision 1 may add to its 153.11 health and safety revenue and deferred maintenance revenue 153.12 amounts under subdivision 1 its proportionate share of any 153.13 health and safety costs and deferred maintenance costs 153.14 attributable to its participation in an interdistrict magnet 153.15 program. 153.16 (b) Notwithstanding subdivision 1, a school district that 153.17 is participating in an interdistrict magnet school program but 153.18 does not qualify for revenue under subdivision 1 may participate 153.19 in the alternative facilities revenue program only for the 153.20 purpose of financing its proportionate share of health and 153.21 safety and deferred maintenance costs associated with the 153.22 interdistrict magnet school and may receive revenue under 153.23 subdivision 5 for that purpose. 153.24 Subd. 4. [LEVYREVENUE PROHIBITED FOR CAPITAL PROJECTS.] A 153.25 district that participates in the alternative facilitiesbonding153.26and levyrevenue program is not eligibleto levy and cannot153.27receive aidfor revenue under sections 123B.57 and 123B.58 for 153.28 any capital projects funded under this section. A district 153.29 maylevy and receive aid for health and safetyreceive revenue 153.30 for environmental management costs and health and safety 153.31 regulatory, hazard assessment, record keeping, and maintenance 153.32 programs as defined in section123A.443123B.57, subdivision 2, 153.33 and approved by the commissioner. 153.34 Subd. 5. [LEVYREVENUE AUTHORIZED.] A district, after 153.35 local board approval, maylevyreceive revenue for costs related 153.36 to an approved facility plan as follows: 154.1 (a) if the district has indicated to the commissioner that 154.2 bonds will be issued, the district maylevyreceive revenue for 154.3 the principal and interest payments on outstanding bonds issued 154.4 according to subdivision 3 after reduction for any alternative 154.5 facilities aid receivable under subdivision 6; or 154.6 (b) if the district has indicated to the commissioner that 154.7 the plan will be funded through levy authorized under section 154.8 123B.53, subdivision 5, the district may levy according to the 154.9 schedule approved in the plan after reduction for any 154.10 alternative facilities aid receivable under subdivision 6. 154.11 Subd. 6. [ALTERNATIVE FACILITIES AID.] A district's 154.12 alternative facilities aid is the amount equal to the district's 154.13 annual debt service costs, provided that the amount does not 154.14 exceed the amount certified to be levied for those purposes for 154.15 taxes payable in 1997, or for a district that made a levy under 154.16 subdivision 5, paragraph (b), the lesser of the district's 154.17 annual levy amount, or one-sixth of the amount of levy that it 154.18 certified for that purpose for taxes payable in 1998. 154.19 Subd. 7. [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 154.20 amount not to exceed $19,700,000 for fiscal year 2000 and 154.21 $20,000,000 for fiscal year 2001 and each year thereafter is 154.22 appropriated from the general fund to the commissioner of 154.23 children, families, and learning for payment of alternative 154.24 facilities aid under subdivision 6. 154.25 (b) The appropriation in paragraph (a) must be reduced by 154.26 the amount of any money specifically appropriated for the same 154.27 purpose in any year from any state fund. 154.28 Subd. 8. [SEPARATE ACCOUNT.] A district must establish a 154.29 separate account under the uniform financial accounting and 154.30 reporting standards (UFARS) for this program. If the district's 154.31levyrevenue exceeds the necessary interest and principal 154.32 payments and noncapital health and safety costs, the district 154.33 must reserve the revenue to replace future bonding authority, 154.34 prepay bonds authorized under this program, or make payments on 154.35 principal and interest. 154.36 (Effective date: Section 6 (123B.59) is effective the day 155.1 following final enactment.) 155.2 Sec. 7. Minnesota Statutes 1998, section 123B.61, is 155.3 amended to read: 155.4 123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 155.5 The board of a district may issue general obligation 155.6 certificates of indebtedness or capital notes subject to the 155.7 district debt limits topurchase: (a) purchase vehicles, 155.8 computers, telephone systems, cable equipment, photocopy and 155.9 office equipment, technological equipment for instruction, and 155.10 other capital equipment having an expected useful life at least 155.11 as long as the terms of the certificates or 155.12 notes;and(b) purchase computer hardware and software, without 155.13 regard to its expected useful life, whether bundled with 155.14 machinery or equipment or unbundled, together with application 155.15 development services and training related to the use of the 155.16 computer; and (c) prepay special assessments. The certificates 155.17 or notes must be payable in not more than five years and must be 155.18 issued on the terms and in the manner determined by the 155.19 board. Except, certificates or notes issued to prepay special 155.20 assessments must be payable in not more than 20 years. The 155.21 certificates or notes may be issued by resolution and without 155.22 the requirement for an election. The certificates or notes are 155.23 general obligation bonds for purposes of section 126C.55. A tax 155.24 levy must be made for the payment of the principal and interest 155.25 on the certificates or notes, in accordance with section 475.61, 155.26 as in the case of bonds. The sum of the tax levies under this 155.27 section and section 123B.62 for each year must not exceed the 155.28 amount of the district's total operating capital revenue for the 155.29 year the initial debt service levies are certified. The 155.30 district's general education levy for each year must be reduced 155.31 by the sum of (1) the amount of the tax levies for debt service 155.32 certified for each year for payment of the principal and 155.33 interest on the certificates or notes as required by section 155.34 475.61, and (2) any excess amount in the debt redemption fund 155.35 used to retire certificates or notes issued after April 1, 1997, 155.36 other than amounts used to pay capitalized interest. A district 156.1 using an excess amount in the debt redemption fund to retire the 156.2 certificates or notes shall report the amount used for this 156.3 purpose to the commissioner by July 15 of the following fiscal 156.4 year. A district having an outstanding capital loan under 156.5 section 126C.69 or an outstanding debt service loan under 156.6 section 126C.68 must not use an excess amount in the debt 156.7 redemption fund to retire the certificates or notes. 156.8 (Effective date: Section 7 (123B.61) is effective the day 156.9 following final enactment.) 156.10 Sec. 8. Minnesota Statutes 1998, section 123B.63, 156.11 subdivision 3, is amended to read: 156.12 Subd. 3. [FACILITIESDOWN PAYMENT LEVYREVENUE 156.13 REFERENDUM.] A district maylevy the local tax ratereceive 156.14 revenue under the facilities equalization program for the 156.15 purposes of financing a school construction project or to pay 156.16 for the lease on a new school building used primarily for 156.17 regular kindergarten, elementary, or secondary instruction if 156.18 authorization is approved by a majority of the electors voting 156.19 on the question to provide funds fora down payment foran 156.20 approved project. The election must take place no more than 156.21 five years before the estimated date of commencement of the 156.22 project. The referendum must be held on a date set by the 156.23 board. A referendum for a project not receiving a positive 156.24 review and comment by the commissioner under section 123B.71 156.25 must be approved by at least 60 percent of the voters voting on 156.26 the question at the election. The referendum may be called by 156.27 the school board and may be held: 156.28 (1) separately, before an election for the issuance of 156.29 obligations for the project under chapter 475; or 156.30 (2) in conjunction with an election for the issuance of 156.31 obligations for the project under chapter 475; or 156.32 (3) notwithstanding section 475.59, as a conjunctive 156.33 question authorizing both thedown payment levyrevenue and the 156.34 issuance of obligations for the project under chapter 475. Any 156.35 obligations authorized for a project may be issued within five 156.36 years of the date of the election. 157.1 The ballot must provide a general description of the 157.2 proposed project, state the estimated total cost of the project, 157.3 state whether the project has received a positive or 157.4negativeunfavorable review and comment from the commissioner, 157.5 state the maximum amount of thedown paymentequalized facility 157.6 levy as a percentage of net tax capacity, state the amount that 157.7 will be raised by that local tax rate in the first year it is to 157.8 be levied, and state the maximum number of years that the levy 157.9 authorization will apply. 157.10 The ballot must contain a textual portion with the 157.11 information required in this section and a question stating 157.12 substantially the following: 157.13 "Shall thedown paymentequalized facility levy proposed by 157.14 the board of .......... School District No. .......... be 157.15 approved?" 157.16 If approved, the amount provided by the approved local tax 157.17 rate applied to the net tax capacity for the year preceding the 157.18 year the levy is certified may be certified for the number of 157.19 years approved. 157.20 In the event a conjunctive question proposes to authorize 157.21 both thedown paymentequalized facilities levy, under section 157.22 123B.53, and the issuance of obligations for the project, 157.23 appropriate language authorizing the issuance of obligations 157.24 must also be included in the question. 157.25 The district must notify the commissioner of the results of 157.26 the referendum. 157.27 (Effective date: Section 8 (123B.63, subdivision 3) is 157.28 effective the day following final enactment.) 157.29 Sec. 9. Minnesota Statutes 1998, section 123B.63, 157.30 subdivision 4, is amended to read: 157.31 Subd. 4. [EXCESS BUILDING CONSTRUCTION FUND LEVY 157.32 PROCEEDS.] (a) For the purpose of a school construction project, 157.33 any fundsremaining in the down payment accountthat are not 157.34 applied to the payment of the costs of the approved project 157.35 before its final completion must be transferred to the 157.36 district's debt redemption fund. 158.1 (b) For the purpose of a leased building, any funds that 158.2 are not applied to the payment of the lease at the termination 158.3 of the lease must be transferred to the district's debt 158.4 redemption fund. 158.5 (Effective date: Section 9 (123B.63, subdivision 4) is 158.6 effective the day following final enactment.) 158.7 Sec. 10. Minnesota Statutes 1998, section 124D.88, 158.8 subdivision 3, is amended to read: 158.9 Subd. 3. [GRANT APPLICATION PROCESS.] (a) Any group of 158.10 school districts that meets the criteria required under 158.11 paragraph (b)(i) may apply for a magnet school grant in an 158.12 amount not to exceed$15,000,000$20,800,000 for the approved 158.13 costs or expansion of a magnet school facility. 158.14 (b)(i) Any group of districts that submits an application 158.15 for a grant shall submit a proposal to the commissioner for 158.16 review and comment under section 123B.71, and the commissioner 158.17 shall prepare a review and comment on the proposed magnet school 158.18 facility, regardless of the amount of the capital expenditure 158.19 required to design, acquire, construct, remodel, improve, 158.20 furnish, or equip the facility. The commissioner must not 158.21 approve an application for a magnet school grant for any 158.22 facility unless the facility receives a favorable review and 158.23 comment under section 123B.71 and the participating districts: 158.24 (1) establish a joint powers board under section 471.59 to 158.25 represent all participating districts and govern the magnet 158.26 school facility; 158.27 (2) design the planned magnet school facility to meet the 158.28 applicable requirements contained in Minnesota Rules, chapter 158.29 3535; 158.30 (3) submit a statement of need, including reasons why the 158.31 magnet school will facilitate integration and improve learning; 158.32 (4) prepare an educational plan that includes input from 158.33 both community and professional staff; and 158.34 (5) develop an education program that will improve learning 158.35 opportunities for students attending the magnet school. 158.36 (ii) The districts may develop a plan that permits social 159.1 service, health, and other programs serving students and 159.2 community residents to be located within the magnet school 159.3 facility. The commissioner shall consider this plan when 159.4 preparing a review and comment on the proposed facility. 159.5 (c) When two or more districts enter into an agreement 159.6 establishing a joint powers board to govern the magnet school 159.7 facility, all member districts shall have the same powers. 159.8 (d) A joint powers board of participating school districts 159.9 established under paragraphs (b) and (c) that intends to apply 159.10 for a grant must adopt a resolution stating the costs of the 159.11 proposed project, the purpose for which the debt is to be 159.12 incurred, and an estimate of the dates when the contracts for 159.13 the proposed project will be completed. A copy of the 159.14 resolution must accompany any application for a state grant 159.15 under this section. 159.16 (e)(i) The commissioner shall examine and consider all 159.17 grant applications. If the commissioner finds that any joint 159.18 powers district is not a qualified grant applicant, the 159.19 commissioner shall promptly notify that joint powers board. The 159.20 commissioner shall make awards to no more than two qualified 159.21 applicants whose applications have been on file with the 159.22 commissioner more than 30 days. 159.23 (ii) A grant award is subject to verification by the joint 159.24 powers board under paragraph (f). A grant award must not be 159.25 made until the participating districts determine the site of the 159.26 magnet school facility. If the total amount of the approved 159.27 applications exceeds the amount of grant funding that is or can 159.28 be made available, the commissioner shall allot the available 159.29 amount equally between the approved applicant districts. The 159.30 commissioner shall promptly certify to each qualified joint 159.31 powers board the amount, if any, of the grant awarded to it. 159.32 (f) Each grant must be evidenced by a contract between the 159.33 joint powers board and the state acting through the 159.34 commissioner. The contract obligates the state to pay to the 159.35 joint powers board an amount computed according to paragraph 159.36 (e)(ii) and a schedule, and terms and conditions acceptable to 160.1 the commissioner of finance. 160.2 (Effective date: Section 10 (124D.88, subdivision 3) is 160.3 effective the day following final enactment.) 160.4 Sec. 11. Minnesota Statutes 1998, section 125B.20, is 160.5 amended to read: 160.6 125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 160.7 COORDINATION.] 160.8 Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of 160.9 developing a statewide school district telecommunications 160.10 network is to expand the availability of a broad range of 160.11 courses and degrees to students throughout the state, to share 160.12 information resources to improve access, quality, and 160.13 efficiency, to improve learning, and distance cooperative 160.14 learning opportunities, and to promote the exchange of ideas 160.15 among students, parents, teachers, media generalists, 160.16 librarians, and the public. In addition, through the 160.17 development of this statewide telecommunications network 160.18 emphasizing cost-effective, competitive connections, all 160.19 Minnesotans will benefit by enhancing access to 160.20 telecommunications technology throughout the state. Network 160.21 connections for school districts and public librarieswill be160.22 are coordinated and fully integrated into the existing state 160.23 telecommunications and interactive television networks to 160.24 achieve comprehensive and efficient interconnectivity of school 160.25 districts and libraries to higher education institutions, state 160.26 agencies, other governmental units, agencies, and institutions 160.27 throughout Minnesota. A school district may apply to the 160.28 commissioner for a grant under subdivision 2, and a regional 160.29 public library may apply under subdivision 3. The Minnesota 160.30 education telecommunication council established in Laws 1995, 160.31 First Special Session chapter 3, article 12, section 7, shall 160.32 establish priorities for awarding grants, making grant awards, 160.33 and being responsible for the coordination of networks. 160.34 Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 160.35 Priority will be given to a school district that has not 160.36 received access to interactive video, data connection, or both 161.1 under the telecommunications access grant program. Districts 161.2 may apply for a grant under this subdivision to: (1) establish 161.3 connections among school districts, and between school districts 161.4 and the state information infrastructure administered by the 161.5 department of administration under section 16B.465; or (2) if 161.6 such a connection meeting minimum electronic connectivity 161.7 standards is already established, enhance telecommunications 161.8 capacity for a school district.The minimum standards of161.9capacity are a 56 kilobyte data line and 768 kilobyte ITV161.10connection, subject to change based on the recommendations by161.11the Minnesota education telecommunications council.A district 161.12 may submit a grant application for interactive television with 161.13 higher capacity connections in order to maintain multiple 161.14 simultaneous connections. To ensure coordination among school 161.15 districts, a school district must submit its grant application 161.16 to the council throughan organization that coordinates the161.17applications and connections of at least ten school districts or161.18through an existing technology cooperativethe 161.19 telecommunications access grant cluster of which the district is 161.20 a member. 161.21 (b) The application must, at a minimum, contain information 161.22 to document for each applicant school district the following: 161.23 (1) that the proposed connection meets the minimum 161.24 standards and employs an open network architecture that will 161.25 ensure interconnectivity and interoperability with other 161.26 education institutions and libraries; 161.27 (2) that the proposed connection and system will be 161.28 connected to the state information infrastructure through the 161.29 department of administration under section 16B.465and that a161.30network service and management agreement is in place; 161.31 (3) that the proposed connection and system will be 161.32 connected to the higher education telecommunication network and 161.33 that a governance agreement has been adopted which includes 161.34 agreements between the school district system, a higher 161.35 education regional council, libraries, and coordinating 161.36 entities; 162.1 (4) the telecommunication vendor selected to provide 162.2 service from the district to a state information infrastructure 162.3 hub or to a more cost-effective connection point to the state 162.4 information infrastructure; and 162.5 (5) other information, as determined by the commissioner in 162.6 consultation with the education telecommunications council, to 162.7 ensure that connections are coordinated, meet state standards 162.8 and are cost-effective, and that service is provided in an 162.9 efficient and cost-effective manner. 162.10 (c) A school district may include, in its grant 162.11 application, telecommunications access for collaboration with 162.12 nonprofit arts organizations for the purpose of educational 162.13 programs, or access for a secondary media center that: (1) is a 162.14 member of a multitype library system; (2) is open during periods 162.15 of the year when classroom instruction is occurring; and (3) has 162.16 licensed school media staff on site. 162.17 (d) The Minnesota education telecommunications council 162.18 shall award grants and the funds shall be dispersed by the 162.19 commissioner.The highest priority for these grants shall be to162.20bring school districts up to the minimum connectivity standards.162.21A grant to enhance telecommunications capacity beyond the162.22minimum connectivity standards shall be no more than 75 percent162.23of the maximum grant under this subdivision. Grant applications162.24for minimum connection and enhanced telecommunications capacity162.25grants must be submitted to the commissioner by a coordinating162.26organization including, but not limited to, service cooperatives162.27and education districts.Grant applications must be submitted 162.28 to the commissioner by a telecommunications access grant cluster 162.29 organization. For the purposes of the grant, a school district 162.30 may include a charter school under section 124D.10, or the 162.31 Faribault academies. Based on the award made by the council, 162.32 all grants under this subdivision shall be paid by the 162.33 commissioner directly to a school district (unless this 162.34 application requests that the funds be paid to the coordinating 162.35 agency). Nonpublic schools as defined in section 237.065, 162.36 subdivision 2, located within the district may access the 163.1 network. The nonpublic school is responsible for actual costs 163.2 for connection from the school to the access site. 163.3 (e) Money awarded under this section may be used only for 163.4 the purposes explicitly stated in the grant application. 163.5 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 163.6 regional public library system may apply for a telecommunication 163.7 access grant. Priority will be given to public libraries that 163.8 have not received access to data connection under the 163.9 telecommunications access grant program. The grant must be used 163.10 to create or expand the capacity of electronic data access and 163.11 connect the library system with the state information 163.12 infrastructure administered by the department of administration 163.13 under section 16B.465.Connections must meet minimum system163.14standards of a 56 kilobyte data line and 768 kilobyte ITV163.15connection.To be eligible for a telecommunications access 163.16 grant, a regional public library system must: (1)meet the 163.17 level of local support required under section 134.34; and (2) be163.18open at least 20 hours per week. 163.19 (b) Any grant award under this subdivision may not be used 163.20 to substitute for any existing local funds allocated to provide 163.21 electronic access, or equipment for library staff or the public, 163.22 or local funds previously dedicated to other library operations. 163.23 (c) An application for a regional public library 163.24 telecommunications access grant must, at a minimum, contain 163.25 information to document the following: 163.26 (1) that the connection meets the minimum standards and 163.27 employs an open network architecture that will ensure 163.28 interconnectivity and interoperability with other libraries and 163.29 the educational system; 163.30 (2) that the connection is being established through the 163.31 most cost-effective means and that the public library has 163.32 explored and coordinated connections through school districts or 163.33 other governmental agencies; 163.34 (3) that the proposed connection and system will be 163.35 connected to the state information infrastructure through the 163.36 department of administration under section 16B.465and that a164.1network service and management agreement is in place; 164.2 (4) that the proposed connection and system will be 164.3 connected to the higher education and to the school district 164.4 telecommunication networks subject to a governance agreement 164.5 with one or more school districts and a higher education 164.6 regional council specifying how the system will be coordinated; 164.7 (5) the telecommunication vendor selected to provide 164.8 service from the library to a state information infrastructure 164.9 hub or through a more cost-effective connection point to the 164.10 state information infrastructure; and 164.11 (6) other information, as determined by the commissioner, 164.12 to ensure that connections are coordinated, meet state 164.13 standards, are cost-effective, and that service is provided in 164.14 an efficient and cost-effective manner so that libraries 164.15 throughout the state are connected in as seamless a manner as 164.16 technically possible. 164.17 Subd. 4. [AWARD OF GRANTS.] The council shall develop 164.18 application forms and procedures forschool district minimum164.19connectivity grants, enhanced telecommunications grants, and164.20regional librarytelecommunication access grants. The council 164.21 shall select the grant recipient and shall promptly notify any 164.22 applicant that is found not to be qualified. The commissioner 164.23 shall make the grant payments directly to the school district or 164.24 regional library system. At the request of the district or 164.25 regional library system, the commissioner may make the grant 164.26 payment directly to the coordinating organization.If164.27appropriations are insufficient to fund all applications, the164.28commissioner shall first fully fund the minimum connectivity164.29grants. Unsuccessful applicants may reapply for a grant.164.30 Subd. 5. [E-RATES.] The telecommunication access grant 164.31 clusters are required to file e-rate applications for 164.32 telecommunication access grant-related expenditures on behalf of 164.33 grant participants in their clusters. Discounts received on 164.34 telecommunication access grant expenditures shall be used to 164.35 offset or reduce operations funding provided by the state. 164.36 Sec. 12. Minnesota Statutes 1998, section 126C.40, 165.1 subdivision 1, is amended to read: 165.2 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 165.3 district finds it economically advantageous to rent or lease a 165.4 building or land for any instructional purposes or for school 165.5 storage or furniture repair, and it determines that the 165.6 operating capital revenue authorized under section 126C.10, 165.7 subdivision 13, is insufficient for this purpose, it may apply 165.8 to the commissioner for permission tomake an additional capital165.9expenditure levyincrease its equalized facilities revenue under 165.10 section 123B.53, subdivision 5, for this purpose. An 165.11 application for permission tolevy under this subdivision165.12 increase the equalized facilities revenue must contain financial 165.13 justification for the proposedlevyincrease, the terms and 165.14 conditions of the proposed lease, and a description of the space 165.15 to be leased and its proposed use. 165.16 (b) The criteria for approval of applications to levy under 165.17 this subdivision must include: the reasonableness of the price, 165.18 the appropriateness of the space to the proposed activity, the 165.19 feasibility of transporting pupils to the leased building or 165.20 land, conformity of the lease to the laws and rules of the state 165.21 of Minnesota, and the appropriateness of the proposed lease to 165.22 the space needs and the financial condition of the district. 165.23 The commissioner must not authorizea levyrevenue under this 165.24 subdivision in an amount greater than the cost to the district 165.25 of renting or leasing a building or land for approved purposes. 165.26 The proceeds of this levy must not be used for custodial or 165.27 other maintenance services. A district may notlevyreceive 165.28 revenue under this subdivision for the purpose of leasing or 165.29 renting a district-owned building or site to itself. 165.30 (c) For agreements finalized after July 1, 1997, a district 165.31 may notlevyreceive revenue under this subdivision for the 165.32 purpose of leasing: (1) a newly constructed building used 165.33 primarily for regular kindergarten, elementary, or secondary 165.34 instruction; or (2) a newly constructed building addition or 165.35 additions used primarily for regular kindergarten, elementary, 165.36 or secondary instruction that contains more than 20 percent of 166.1 the square footage of the previously existing building. 166.2 (d) The totallevyrevenue under this subdivision for a 166.3 district for any year must not exceed $100 times theresident166.4 adjusted pupil units for the fiscal year to which the levy is 166.5 attributable. 166.6 (e) For agreements for which a review and comment have been 166.7 submitted to the department of children, families, and learning 166.8 after April 1, 1998, the term "instructional purpose" as used in 166.9 this subdivision excludes expenditures on stadiums. 166.10 (Effective date: Section 12 (126C.40, subdivision 1) is 166.11 effective the day following final enactment.) 166.12 Sec. 13. Minnesota Statutes 1998, section 126C.40, 166.13 subdivision 2, is amended to read: 166.14 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 166.15 A district mayannually levyincrease the amount of its 166.16 equalized facilities revenue needed to make payments required by 166.17 a lease purchase agreement, installment purchase agreement, or 166.18 other deferred payment agreement authorized by Minnesota 166.19 Statutes 1989 Supplement, section 465.71, if: 166.20 (1) the agreement was approved by the commissioner before 166.21 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 166.22 section 275.125, subdivision 11d; or 166.23 (2) the district levied in 1989 for the payments. 166.24 (Effective date: Section 13 (126C.40, subdivision 2) is 166.25 effective the day following final enactment.) 166.26 Sec. 14. Minnesota Statutes 1998, section 126C.40, 166.27 subdivision 3, is amended to read: 166.28 Subd. 3. [COOPERATING DISTRICTS.] A district that has an 166.29 agreement according to section 123A.30 or 123A.32 maylevy166.30 increase its equalized facilities revenue under section 123B.53, 166.31 subdivision 5, for the repair costs, as approved by the 166.32 department of a building located in another district that is a 166.33 party to the agreement. 166.34 (Effective date: Section 14 (126C.40, subdivision 3) is 166.35 effective the day following final enactment.) 166.36 Sec. 15. Minnesota Statutes 1998, section 126C.40, 167.1 subdivision 4, is amended to read: 167.2 Subd. 4. [INTERACTIVE TELEVISION.] (a) A district with its 167.3 central administrative office located within economic 167.4 development region one, two, three, four, five, six, seven, 167.5 eight, nine, and ten may apply to the commissioner for ITV 167.6 revenue up to the greater of.5.6 percent of the adjusted net 167.7 tax capacity of the district or $25,000. Eligible interactive 167.8 television expenditures include the construction, maintenance, 167.9 and lease costs of an interactive television system for 167.10 instructional purposes. An eligible school district that has 167.11 completed the construction of its interactive television system 167.12 may also purchase computer hardware and software used primarily 167.13 for instructional purposes and access to the Internet provided 167.14 that its total expenditures for interactive television 167.15 maintenance and lease costs and for computer hardware and 167.16 software under this subdivision do not exceed its interactive 167.17 television revenue for fiscal year 1998. The approval by the 167.18 commissioner and the application procedures set forth in 167.19 subdivision 1 shall apply to the revenue in this subdivision. 167.20 In granting the approval, the commissioner shall consider 167.21 whether the district is maximizing efficiency through peak use 167.22 and off-peak use pricing structures. 167.23 (b) To obtain ITV revenue, a district may levy an amount 167.24 not to exceed the district's ITV revenue times the lesser of one 167.25 or the ratio of: 167.26 (1) the quotient derived by dividing the adjusted net tax 167.27 capacity of the district for the year before the year the levy 167.28 is certified by theresidentadjusted pupil units in the 167.29 district for the year to which the levy is attributable; to 167.30 (2)$10,000$8,404. 167.31 (c) A district's ITV aid is the difference between its ITV 167.32 revenue and the ITV levy. 167.33 (d) The revenue in the first year after reorganization for 167.34 a district that has reorganized under sections 123A.35 to 167.35 123A.41, 123A.46, or 123A.48 shall be the greater of: 167.36 (1) the revenue computed for the reorganized district under 168.1 paragraph (a), or 168.2 (2)(i) for two districts that reorganized, 75 percent of 168.3 the revenue computed as if the districts involved in the 168.4 reorganization were separate, or 168.5 (ii) for three or more districts that reorganized, 50 168.6 percent of the revenue computed as if the districts involved in 168.7 the reorganization were separate. 168.8 (e) The revenue in paragraph (d) is increased by the 168.9 difference between the initial revenue and ITV lease costs for 168.10 leases that had been entered into by the preexisting districts 168.11 on the effective date of the consolidation or combination and 168.12 with a term not exceeding ten years. This increased revenue is 168.13 only available for the remaining term of the lease. However, in 168.14 no case shall the revenue exceed the amount available had the 168.15 preexisting districts received revenue separately. 168.16 (f) Effective for fiscal year 2000, the revenue under this 168.17 section shall be 75 percent of the amount determined in 168.18 paragraph (a); for fiscal year 2001, 50 percent of the amount in 168.19 paragraph (a); and for fiscal year 2002, 25 percent of the 168.20 amount in paragraph (a). 168.21 (g) Thissectionsubdivision expires effective for revenue 168.22 for fiscal year 2003, or when leases in existence on the168.23effective date of Laws 1997, First Special Session chapter 4,168.24expire. 168.25 (Effective date: Section 15 (126C.40, subdivision 4) is 168.26 effective for revenue for fiscal year 2000 and later.) 168.27 Sec. 16. Minnesota Statutes 1998, section 126C.40, 168.28 subdivision 6, is amended to read: 168.29 Subd. 6. [LEASE PURCHASE; INSTALLMENT BUYS.] (a) Upon 168.30 application to, and approval by, the commissioner in accordance 168.31 with the procedures and limits in subdivision 1, paragraphs (a) 168.32 and (b), a district, as defined in this subdivision, may: 168.33 (1) purchase real or personal property under an installment 168.34 contract or may lease real or personal property with an option 168.35 to purchase under a lease purchase agreement, by which 168.36 installment contract or lease purchase agreement title is kept 169.1 by the seller or vendor or assigned to a third party as security 169.2 for the purchase price, including interest, if any; and 169.3 (2) annuallylevyincrease its equalized facilities revenue 169.4 under section 123B.53, subdivision 5, by the amounts necessary 169.5 to pay the district's obligations under the installment contract 169.6 or lease purchase agreement. 169.7 (b) The obligation created by the installment contract or 169.8 the lease purchase agreement must not be included in the 169.9 calculation of net debt for purposes of section 475.53, and does 169.10 not constitute debt under other law. An election is not 169.11 required in connection with the execution of the installment 169.12 contract or the lease purchase agreement. 169.13 (c) The proceeds of thelevyequalized facilities revenue 169.14 increase authorized by this subdivision must not be used to 169.15 acquire a facility to be primarily used for athletic or school 169.16 administration purposes. 169.17 (d) For the purposes of this subdivision, "district" means: 169.18 (1) a school district required to have a comprehensive plan 169.19 for the elimination of segregation whose plan has been 169.20 determined by the commissioner to be in compliance with the 169.21 state board of education rules relating to equality of 169.22 educational opportunity and school desegregation; or 169.23 (2) a school district that participates in a joint program 169.24 for interdistrict desegregation with a district defined in 169.25 clause (1) if the facility acquired under this subdivision is to 169.26 be primarily used for the joint program. 169.27 (e) Notwithstanding subdivision 1, the prohibition against 169.28a levy bya districtto leasereceiving revenue for the purpose 169.29 of leasing orrentrenting a district-owned building to itself 169.30 does not apply toleviesrevenues otherwise authorized by this 169.31 subdivision. 169.32 (f) For the purposes of this subdivision, any references in 169.33 subdivision 1 to building or land shall include personal 169.34 property. 169.35 (Effective date: Section 16 (126C.40, subdivision 6) is 169.36 effective the day following final enactment.) 170.1 Sec. 17. Minnesota Statutes 1998, section 126C.55, is 170.2 amended by adding a subdivision to read: 170.3 Subd. 10. [CONTINUING DISCLOSURE AGREEMENTS.] The 170.4 commissioner of finance may enter into written agreements or 170.5 contracts relating to the continuing disclosure of information 170.6 necessary to facilitate the issuance of debt obligations by 170.7 school districts in accordance with federal securities laws, 170.8 rules, and regulations, including securities and exchange 170.9 commission rules and regulations, section 240.15c2-12. Such 170.10 agreements or contracts may be in any form deemed reasonable and 170.11 in the best interests of the state by the commissioner of 170.12 finance. 170.13 (Effective date: Section 17 (126C.55, subdivision 10) is 170.14 effective the day following final enactment.) 170.15 Sec. 18. Minnesota Statutes 1998, section 126C.63, 170.16 subdivision 8, is amended to read: 170.17 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 170.18 effort debt service levy" means the lesser of: 170.19 (1) a levy in whichever of the following amounts is 170.20 applicable: 170.21 (a) in any district receiving a debt service loan for a 170.22 debt service levy payable in 1991 and thereafter, or granted a 170.23 capital loan after January 1, 1990, a levy in a total dollar 170.24 amount computed at a rate of2024 percent of adjusted net tax 170.25 capacity for taxes payable in 1991 and thereafter; 170.26 (b) in any district granted a debt service loan after July 170.27 31, 1981, or granted a capital loan which is approved after July 170.28 31, 1981, a levy in a total dollar amount computed as atax rate170.29of 13.08 percent on the adjusted gross tax capacity for taxes170.30payable in 1990 or atax rate of18.4221.92 percent on the 170.31 adjusted net tax capacity for taxes payable in 1991 and 170.32 thereafter; 170.33(c) in any district granted a debt service loan before170.34August 1, 1981, or granted a capital loan which was approved170.35before August 1, 1981, a levy in a total dollar amount computed170.36as a tax rate of 12.26 percent on the adjusted gross tax171.1capacity for taxes payable in 1990 or a tax rate of 17.17171.2percent on the adjusted net tax capacity for taxes payable in171.31991 and thereafter, until and unless the district receives an171.4additional loan;or 171.5 (2) a levyin whichever of the following amounts is171.6applicable:171.7(a) in any district which received a debt service or171.8capital loan from the state before January 1, 1965, a levy in a171.9total dollar amount computed as 4.10 mills on the market value171.10in each year, unless the district applies or has applied for an171.11additional loan subsequent to January 1, 1965, or issues or has171.12issued bonds on the public market, other than bonds refunding171.13state loans, subsequent to January 1, 1967;171.14(b) in any district granted a debt service or capital loan171.15between January 1, 1965, and July 1, 1969, a levy in a total171.16dollar amount computed as 5-1/2 mills on the market value in171.17each year, until and unless the district receives an additional171.18loan;171.19(c) in any district granted a debt service or capital loan171.20between July 1, 1969, and July 1, 1975, a levy in a total dollar171.21amount computed as 6.3 mills on market value in each year until171.22and unless the district has received an additional loan;171.23(d)in any district for which a capital loan was approved 171.24 prior to August 1, 1981, a levy in a total dollar amount equal 171.25 to the sum of the amount of the required debt service levy and 171.26 an amount which when levied annually will in the opinion of the 171.27 commissioner be sufficient to retire the remaining interest and 171.28 principal on any outstanding loans from the state within 30 171.29 years of the original date when the capital loan was granted. 171.30 The board in any district affected by the provisions of 171.31 clause (2)(d)may elect instead to determine the amount of its 171.32 levy according to the provisions of clause (1). If a district's 171.33 capital loan is not paid within 30 years because it elects to 171.34 determine the amount of its levy according to the provisions of 171.35 clause (2)(d), the liability of the district for the amount of 171.36 the difference between the amount it levied under clause (2)(d)172.1 and the amount it would have levied under clause (1), and for 172.2 interest on the amount of that difference, must not be satisfied 172.3 and discharged pursuant to Minnesota Statutes 1988, or an 172.4 earlier edition of Minnesota Statutes if applicable, section 172.5 124.43, subdivision 4. 172.6 (Effective date: Section 18 (126C.63, subdivision 8) is 172.7 effective for revenue for fiscal year 2000 and later.) 172.8 Sec. 19. Minnesota Statutes 1998, section 126C.69, 172.9 subdivision 2, is amended to read: 172.10 Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 172.11 1,19921999, a district is not eligible for a capital loan 172.12 unless the district's estimated net debt tax rate as computed by 172.13 the commissioner after debt service equalization aid would be 172.14 more than2024 percent of adjusted net tax capacity. The 172.15 estimate must assume a 20-year maturity schedule for new debt. 172.16 (Effective date: Section 19 (126C.69, subdivision 2) is 172.17 effective for revenue for fiscal year 2000 and later.) 172.18 Sec. 20. Minnesota Statutes 1998, section 126C.69, 172.19 subdivision 9, is amended to read: 172.20 Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be 172.21 recommended for approval for a district exceeding an amount 172.22 computed as follows: 172.23 (1) the amount requested by the district under subdivision 172.24 6; 172.25 (2) plus the aggregate principal amount of general 172.26 obligation bonds of the district outstanding on June 30 of the 172.27 year following the year the application was received, not 172.28 exceeding the limitation on net debt of the district in section 172.29 475.53, subdivision 4, or305363 percent of its adjusted net 172.30 tax capacity as most recently determined, whichever is less; 172.31 (3) less the maximum net debt permissible for the district 172.32 on December 1 of the year the application is received, under the 172.33 limitation in section 475.53, subdivision 4, or305363 percent 172.34 of its adjusted net tax capacity as most recently determined, 172.35 whichever is less; 172.36 (4) less any amount by which the amount voted exceeds the 173.1 total cost of the facilities for which the loan is granted. 173.2 (b) The loan may be approved in an amount computed as 173.3 provided in paragraph (a), clauses (1) to (3), subject to later 173.4 reduction according to paragraph (a), clause (4). 173.5 Sec. 21. Minnesota Statutes 1998, section 126C.69, 173.6 subdivision 15, is amended to read: 173.7 Subd. 15. [BOND SALE LIMITATIONS.] A district having an 173.8 outstanding state loan must not issue and sell any bonds on the 173.9 public market, except to refund state loans, unless it agrees to 173.10 make the maximum effort debt service levy in each later year at 173.11 the higher rate provided in section 126C.63, subdivision 8, and 173.12 unless it schedules the maturities of the bonds according to 173.13 section 475.54, subdivision 2. A district that refunds bonds at 173.14 a lower interest rate may continue to make the maximum effort 173.15 debt service levy in each later year at the current rate 173.16 provided in section 126C.63, subdivision 8, if the district can 173.17 demonstrate to the commissioner's satisfaction that the 173.18 district's repayments of the state loan will not be reduced 173.19 below the previous year's level. The district must report each 173.20 sale to the commissioner. 173.21 After a district's capital loan has been outstanding for20173.22 30 years, the district must not issue bonds on the public market 173.23 except to refund the loan. 173.24 Sec. 22. Laws 1995, First Special Session chapter 3, 173.25 article 12, section 7, as amended by Laws 1997, First Special 173.26 Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 173.27 section 4, and Laws 1998, chapter 359, section 20, is amended to 173.28 read: 173.29 Sec. 7. [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 173.30 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 173.31 of the Minnesota education telecommunications council 173.32 established in Laws 1993, First Special Session chapter 2, is 173.33 expanded to include representatives of elementary and secondary 173.34 education. The membership shall consist of three 173.35 representatives from the University of Minnesota; three 173.36 representatives of the board of trustees for Minnesota state 174.1 colleges and universities; one representative of the higher 174.2 education services offices; one representative appointed by the 174.3 private college council; one representative selected by the 174.4 commissioner of administration; eight representatives selected 174.5 by the commissioner of children, families, and learning, at 174.6 least one of which must come from each of the six higher 174.7 education telecommunication regions; a representative from the 174.8 office of technology; two members each from the senate and the 174.9 house of representatives selected by the subcommittee on 174.10 committees of the committee on rules and administration of the 174.11 senate and the speaker of the house, one member from each body 174.12 must be a member of the minority party; and three 174.13 representatives of libraries, one representing regional public 174.14 libraries, one representing multitype libraries, and one 174.15 representing community libraries, selected by the governor. The 174.16 council shall: 174.17 (1) develop a statewide vision and plans for the use of 174.18 distance learning technologies and provide leadership in 174.19 implementing the use of such technologies; 174.20 (2)recommend to the commissioner and the legislature by174.21December 15, 1996, a plan for long-term governance and a174.22proposed structure for statewide and regional174.23telecommunications;174.24(3)recommend educational policy relating to 174.25 telecommunications; 174.26(4)(3) determine priorities for use; 174.27(5)(4) oversee coordination of networks for post-secondary 174.28 campuses,K-12kindergarten through grade 12 education, and 174.29 regional and community libraries; 174.30(6)(5) review application for telecommunications access 174.31 grants under Minnesota Statutes, section124C.74125B.20, and 174.32 recommend to the department grants for funding; 174.33(7)(6) determine priorities for grant funding proposals; 174.34 and 174.35(8)(7) work with the information policy office to ensure 174.36 consistency of the operation of the learning network with 175.1 standards of an open system architecture. 175.2 The council shall consult with representatives of the 175.3 telecommunication industry in implementing this section. 175.4 Subd. 2. [DISTRICT COUNCIL MEMBERSHIP.] District 175.5 organizations that coordinate applications for telecommunication 175.6 access grants are encouraged to become members of the regional 175.7 higher education telecommunication council in their area. 175.8 Subd. 3. [CRITERIA.] In addition to responsibilities of 175.9 the council under Laws 1993, First Special Session chapter 2, as 175.10 amended, the telecommunications council shall evaluate grant 175.11 applications under Minnesota Statutes, section 124C.74 and 175.12 applications from district organizations using the following 175.13 criteria: 175.14 (1) evidence of cooperative arrangements with other 175.15 post-secondary institutions, school districts, and community and 175.16 regional libraries in the geographic region; 175.17 (2) plans for shared classes and programs; 175.18 (3) avoidance of network duplication; 175.19 (4) evidence of efficiencies to be achieved in delivery of 175.20 instruction due to use of telecommunications; 175.21 (5) a plan for development of a list of all courses 175.22 available in the region for delivery at a distance; 175.23 (6) a plan for coordinating and scheduling courses; and 175.24 (7) a plan for evaluation of costs, access, and outcomes. 175.25 Sec. 23. Laws 1997, First Special Session chapter 4, 175.26 article 9, section 13, is amended to read: 175.27 Sec. 13. [REPEALER.] 175.28(a) Minnesota Statutes 1996, section 124C.74, is repealed175.29effective July 1, 1999.175.30(b)Minnesota Statutes 1996, section 134.46, is repealed. 175.31 (Effective date: Section 23 (Laws 1997, First Special 175.32 Session chapter 4, article 9, section 13) is effective June 30, 175.33 1999.) 175.34 Sec. 24. Laws 1998, chapter 404, section 5, subdivision 5, 175.35 is amended to read: 175.36 Subd. 5. Metropolitan Magnet Schools 22,200,000 176.1 For awarding metropolitan magnet school 176.2 grants to groups of qualified 176.3 metropolitan school districts under 176.4 Minnesota Statutes, section 124C.498. 176.5 $1,900,000 is for the completion of the 176.6 Downtown Integration magnet school in 176.7 Minneapolis. 176.8 $3,800,000 is for planning, design, 176.9 acquisition of land, architectural 176.10 fees, and engineering fees for the East 176.11 Metropolitan Integration magnet school 176.12 in the East Metropolitan area. Of that 176.13 amount, $2,800,000 is for land 176.14 acquisition and site development. 176.15 $14,500,000 is for the construction of 176.16 the Metropolitan Integration magnet 176.17 school in Robbinsdale. 176.18 $2,000,000 is for the Southwest 176.19 Metropolitan Integration magnet school 176.20 in Edina. 176.21 (Effective date: Section 24 (Laws 1998, chapter 404, 176.22 section 5, subdivision 5) is effective the day following final 176.23 enactment.) 176.24 Sec. 25. [MCGREGOR LEVY.] 176.25 Beginning with taxes payable in 2000, independent school 176.26 district No. 4, McGregor, may levy $32,000 each year for eight 176.27 years for the amount of energy improvements that the district 176.28 made with the intention of complying with Minnesota Statutes, 176.29 section 216C.37. 176.30 Sec. 26. [HEALTH AND SAFETY; PROCTOR.] 176.31 Notwithstanding any law to the contrary, independent school 176.32 district No. 704, Proctor, may include in its health and safety 176.33 program the amounts necessary to make health and safety 176.34 improvements to an ice arena located within the district 176.35 boundaries in order for the district to use the facility to meet 176.36 the district's curriculum needs under the state graduation 176.37 rule. The district must attempt to renegotiate its lease 176.38 agreement with the county that operates the arena before it is 176.39 eligible for health and safety revenue under this section. The 176.40 total amount of revenue approved for this purpose shall not 176.41 exceed $150,000. 176.42 Sec. 27. [DISTRICTS ELIGIBLE FOR ALTERNATIVE FACILITIES 176.43 REVENUE PROGRAM.] 177.1 Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 834, 177.2 STILLWATER.] Independent school district No. 834, Stillwater, is 177.3 eligible for the alternative facilities revenue program under 177.4 Minnesota Statutes, section 123B.59, for the purposes of 177.5 financing school facilities in the district. 177.6 Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS 177.7 VIEW.] Independent school district No. 621, Mounds View, is 177.8 eligible for the alternative facilities revenue program under 177.9 Minnesota Statutes, section 123B.59, for the purposes of 177.10 financing school facilities in the district. 177.11 Subd. 3. [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH ST. 177.12 PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 622, 177.13 North St. Paul-Maplewood-Oakdale, is eligible for the 177.14 alternative facilities revenue program under Minnesota Statutes, 177.15 section 123B.59, for the purposes of financing school facilities 177.16 in the district. 177.17 Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 624, WHITE BEAR 177.18 LAKE.] Independent school district No. 624, White Bear Lake, is 177.19 eligible for the alternative facilities revenue program under 177.20 Minnesota Statutes, section 123B.59, for the purposes of 177.21 financing school facilities in the district. 177.22 Subd. 5. [COMPLIANCE WITH SUPERINTENDENT REPORT.] In order 177.23 to be eligible for the alternative facilities revenue program 177.24 according to this section, the district must comply with 177.25 Minnesota Statutes, section 123B.143, subdivision 1, clause (5). 177.26 Sec. 28. [ELK RIVER DEBT SERVICE LOAN TAX ADJUSTMENT.] 177.27 The department shall recompute the maximum tax rate 177.28 required under Minnesota Statutes, section 126C.63, subdivision 177.29 8, for taxes payable in 2000 and thereafter for independent 177.30 school district No. 728, Elk River. The recomputation shall 177.31 adjust for the difference in property tax base in the district 177.32 relative to the state average as determined under Laws 1997, 177.33 First Special Session chapter 4, article 1, section 61, 177.34 subdivision 2. 177.35 Sec. 29. [RESIDENTIAL ACADEMIES.] 177.36 If a recipient has been awarded a grant under Laws 1998, 178.1 chapter 398, article 5, section 46, and fails to meet the 178.2 requirements under the application process for implementing the 178.3 program after June 30, 1999, any grant money awarded but not 178.4 paid shall not cancel but is appropriated to the commissioner 178.5 for new grants. The commissioner may reopen the application 178.6 process with any funds made available. The commissioner shall 178.7 consider an application that proposes to use the state facility 178.8 at Sauk Centre for the program. Notwithstanding any law enacted 178.9 during the 1999 session, if a recipient proposes to use the 178.10 state facility at Sauk Centre, the facility shall transfer to 178.11 the commissioner of administration. 178.12 Sec. 30. [APPROPRIATION.] 178.13 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 178.14 LEARNING.] The sums indicated in this section are appropriated 178.15 from the general fund to the department of children, families, 178.16 and learning for the fiscal years designated. 178.17 Subd. 2. [FACILITIES EQUALIZATION AID.] For facilities 178.18 equalization aid according to Minnesota Statutes, section 178.19 123B.53, subdivision 6: 178.20 $66,751,000 ..... 2000 178.21 $66,894,000 ..... 2001 178.22 The 2000 appropriation includes $6,957,000 for 1999 and 178.23 $59,794,000 for 2000. The 2001 appropriation includes 178.24 $6,640,000 for 2000 and $60,254,000 for 2001. 178.25 Subd. 3. [INTERACTIVE TELEVISION (ITV) AID.] For 178.26 interactive television (ITV) aid according to Minnesota 178.27 Statutes, section 126C.40, subdivision 4: 178.28 $4,197,000 ..... 2000 178.29 $2,851,000 ..... 2001 178.30 The 2000 appropriation includes $405,000 for 1999 and 178.31 $3,792,000 for 2000. The 2001 appropriation includes $421,000 178.32 for 2000 and $2,430,000 for 2001. 178.33 Subd. 4. [ONE-TIME INFRASTRUCTURE GRANTS.] For grants for 178.34 infrastructure improvement: 178.35 $1,082,000 ..... 2000 178.36 Of this amount, $50,000 is for independent school district 179.1 No. 23, Frazee; $150,000 is for independent school district No. 179.2 659, Northfield; $300,000 is for independent school district No. 179.3 392, Le Center; $316,000 is for independent school district No. 179.4 31, Bemidji; and $266,000 is for independent school district No. 179.5 542, Battle Lake. These grants must be used to improve and 179.6 update the district's school infrastructure including facilities 179.7 purposes that lead to greater program efficiencies, technology 179.8 infrastructure, or building maintenance. 179.9 Subd. 5. [FACILITY GRANT; BROOKLYN CENTER.] For a grant to 179.10 independent school district No. 286, Brooklyn Center, a district 179.11 impacted by statutory operating debt, for replacement of two 179.12 boilers and one chiller: 179.13 $150,000 ..... 2000 179.14 This appropriation is available until June 30, 2001. 179.15 Subd. 6. [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 179.16 a disaster relief facilities grant to independent school 179.17 district No. 81, Comfrey: 179.18 $450,000 ..... 2000 179.19 This appropriation is available until June 30, 2001. 179.20 This grant is for facilities replacement costs not covered 179.21 by the district's insurance settlement or through federal 179.22 emergency management agency payments. 179.23 Subd. 7. [DISASTER RELIEF FACILITIES GRANT; ST. 179.24 PETER.] For a disaster relief facilities grant to independent 179.25 school district No. 508, St. Peter: 179.26 $600,000 ..... 2000 179.27 This grant is for facilities replacement costs not covered 179.28 by the district's insurance settlement or through federal 179.29 emergency management agency payments. 179.30 This appropriation is available until June 30, 2001. 179.31 Subd. 8. [PLANNING GRANT; MINNESOTA RIVER VALLEY EDUCATION 179.32 DISTRICT.] For a matching grant to the Minnesota river valley 179.33 education district to develop a plan for the co-location of 179.34 Minnesota river valley education district, including its area 179.35 learning center, and southwest Minnesota workforce development 179.36 center facilities, including the collaboration of the delivery 180.1 of their services: 180.2 $50,000 ..... 2000 180.3 The outcomes of the matching planning grant are to: 180.4 (1) develop a coordinated plan to improve the delivery of 180.5 services through the co-location of the participating district's 180.6 and workforce center's programs and services; 180.7 (2) offer services through various educational and 180.8 workforce center programs that will help students meet state 180.9 graduation requirements; and 180.10 (3) examine licensing issues that may prevent the most 180.11 efficient use of shared staffing. 180.12 The commissioner shall award the grant to the Minnesota 180.13 river valley education district contingent upon the district 180.14 demonstrating that it will match the grant amount with revenue 180.15 contributed from member school districts and the workforce 180.16 development center. 180.17 This appropriation is available until June 30, 2001. 180.18 Subd. 9. [URBAN LEAGUE STREET ACADEMY.] For a grant to 180.19 special school district No. 1, Minneapolis, for the urban league 180.20 street academy for the costs of acquiring and moving to a larger 180.21 building to expand the academy's program: 180.22 $750,000 ..... 2000 180.23 This appropriation is available until June 30, 2001. 180.24 Subd. 10. [JACKSON COUNTY CENTRAL.] For a grant to 180.25 independent school district No. 2862, Jackson County Central, 180.26 for unanticipated costs related to facilities and consolidating 180.27 the Jackson and Lakefield school districts: 180.28 $90,000 ..... 2000 180.29 This appropriation is available until June 30, 2001. 180.30 Subd. 11. [HOLDINGFORD GRANT.] For a grant to independent 180.31 school district No. 738, Holdingford, for a one-time grant to 180.32 bring the girls locker room into Title IX compliance and to 180.33 complete the construction on a school theater. 180.34 $200,000 ..... 2000 180.35 This appropriation is available until June 30, 2001. 180.36 Subd. 12. [WADENA-DEER CREEK PILOT GRANT.] For a grant to 181.1 independent school district No. 2155, Wadena-Deer Creek, for a 181.2 pilot project to use technology to support instruction in 181.3 mathematics and reading. 181.4 $111,000 ..... 2000 181.5 This appropriation is available until June 30, 2001. 181.6 Subd. 13. [YEAR-ROUND OPTIONAL SCHOOL; 181.7 CAMBRIDGE-ISANTI.] For a grant to independent school district 181.8 No. 911, Cambridge-Isanti: 181.9 $100,000 ..... 2000 181.10 This appropriation must be used for initial facility costs 181.11 relating to the district's year-round optional school that 181.12 assists in reducing elementary teacher-to-student ratios, 181.13 including expenses to conform leased space to building code 181.14 requirements. 181.15 Subd. 14. [COOPERATIVE SECONDARY FACILITY; PLANNING AND 181.16 EXPENSES.] For a grant and administrative expenses to facilitate 181.17 planning for a cooperative secondary facility under a joint 181.18 powers agreement for school district Nos. 411, Balaton, 402, 181.19 Ivanhoe, 404, Lake Benton, 418, Russell, 584, Ruthton, and 409, 181.20 Tyler: 181.21 $100,000 ..... 2000 181.22 Subd. 15. [TELECOMMUNICATION ACCESS GRANTS.] For 181.23 telecommunication access grants according to Minnesota Statutes, 181.24 section 125B.20: 181.25 $5,000,000 ..... 2000 181.26 This appropriation is available until June 30, 2001. 181.27 Subd. 16. [PROCTOR GRANT.] For a one-time grant to 181.28 independent school district No. 704, Proctor, to make 181.29 improvements to an ice arena located within the district 181.30 boundaries in order for the district to use the facility to meet 181.31 the district's curriculum needs under the state graduation rule: 181.32 $150,000 ..... 2000 181.33 This appropriation is available until June 30, 2001. 181.34 Sec. 31. [REPEALER.] 181.35 (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 181.36 123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 182.1 subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 182.2 subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 182.3 are repealed effective the day following final enactment. 182.4 (b) Minnesota Statutes 1998, section 123B.58, is repealed 182.5 effective July 1, 2004. 182.6 (c) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 182.7 3500.4200; and 3500.4300, are repealed. 182.8 Sec. 32. [REVISOR INSTRUCTION.] 182.9 (a) In the next and subsequent editions of Minnesota 182.10 Statutes, the revisor shall codify section 23 as Minnesota 182.11 Statutes, section 125B.21. 182.12 (b) In the next and subsequent editions of Minnesota 182.13 Statutes, the revisor shall change the headnote of section 182.14 123B.63 from "BUILDING CONSTRUCTION DOWN PAYMENT PROGRAM" to 182.15 "BUILDING CONSTRUCTION DOWN PAYMENT AND LEASE PROGRAM." 182.16 Sec. 33. [EFFECTIVE DATES.] 182.17 When preparing the prekindergarten through grade 12 182.18 education conference committee report for adoption by the 182.19 legislature, the revisor shall combine all effective date 182.20 notations in this article into this effective date section. 182.21 ARTICLE 5 182.22 EDUCATION EXCELLENCE 182.23 Section 1. Minnesota Statutes 1998, section 41D.02, 182.24 subdivision 2, is amended to read: 182.25 Subd. 2. [ELEMENTARY AND SECONDARY AGRICULTURAL 182.26 EDUCATION.] The council may provide grants for: 182.27 (1) planning and establishment costs for elementary and 182.28 secondary agriculture education programs; 182.29 (2) new instructional and communication technologies; and 182.30 (3) curriculum updates. 182.31 Sec. 2. Minnesota Statutes 1998, section 123A.05, is 182.32 amended by adding a subdivision to read: 182.33 Subd. 5. [BUILDING LEASE AID.] When an area learning 182.34 center or a contracted alternative school finds it economically 182.35 advantageous to rent or lease a building or land for any 182.36 instructional purpose and it determines that the total operating 183.1 capital revenue under section 126C.10, subdivision 13, is 183.2 insufficient for this purpose, it may apply to the commissioner 183.3 for building lease aid for this purpose. Criteria for aid 183.4 approval and revenue uses shall be as defined for the building 183.5 lease levy in section 126C.40, subdivision 1, paragraphs (a) and 183.6 (b). The amount of building lease aid per pupil unit served for 183.7 an area learning center or a contracted alternative school for 183.8 any year shall not exceed the lesser of: (1) 80 percent of the 183.9 approved cost; or (2) the product of the pupil units served for 183.10 the current school year times the sum of the state average debt 183.11 redemption fund revenue plus capital revenue, according to 183.12 section 126C.40, per pupil unit served for the current fiscal 183.13 year. Area learning centers and contracted alternatives may not 183.14 purchase land or buildings with money received from the state. 183.15 (Effective date: Section 2 (123A.05, subdivision 5) is 183.16 effective the day following final enactment.) 183.17 Sec. 3. Minnesota Statutes 1998, section 124D.10, 183.18 subdivision 3, is amended to read: 183.19 Subd. 3. [SPONSOR; GRANT.] A school board, intermediate 183.20 school district school board, education districts organized 183.21 under sections 123A.15 to 123A.19, private college, community 183.22 college, state university, technical college, or the University 183.23 of Minnesota may sponsor one or more charter schools. 183.24 Sec. 4. Minnesota Statutes 1998, section 124D.10, 183.25 subdivision 4, is amended to read: 183.26 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 183.27 authorize one or more licensed teachers under section 122A.18, 183.28 subdivision 1, to operate a charter school subject to approval 183.29 by the state board. A board must vote on charter school 183.30 application for sponsorship no later than 60 days after receipt 183.31 of the application. After 60 days, the applicant may apply to 183.32 the state board. If a board elects not to sponsor a charter 183.33 school, the applicant may appeal the board's decision to the 183.34 state boardif two members of the board voted to sponsor the183.35school. If the state board authorizes the school, the state 183.36 board must sponsor the school according to this section. The 184.1 school must be organized and operated as a cooperative under 184.2 chapter 308A or nonprofit corporation under chapter 317A. 184.3 (b) Before the operators may form and operate a school, the 184.4 sponsor must file an affidavit with the state board stating its 184.5 intent to authorize a charter school. The affidavit must state 184.6 the terms and conditions under which the sponsor would authorize 184.7 a charter school. The state board must approve or disapprove 184.8 the sponsor's proposed authorization within 60 days of receipt 184.9 of the affidavit. Failure to obtain state board approval 184.10 precludes a sponsor from authorizing the charter school that was 184.11 the subject of the affidavit. 184.12 (c) The operators authorized to organize and operate a 184.13 school must hold an election for members of the school's board 184.14 of directors in a timely manner after the school is operating. 184.15 Any staff members who are employed at the school, including 184.16 teachers providing instruction under a contract with a 184.17 cooperative, and all parents of children enrolled in the school 184.18 may participate in the election. Licensed teachers employed at 184.19 the school, including teachers providing instruction under a 184.20 contract with a cooperative, must be a majority of the members 184.21 of the board of directors, unless the state board waives the 184.22 requirement for the school. A provisional board may operate 184.23 before the election of the school's board of directors. Board 184.24 of director meetings must comply with section 471.705. 184.25 (d) The granting or renewal of a charter by a sponsoring 184.26 entity must not be conditioned upon the bargaining unit status 184.27 of the employees of the school. 184.28 Sec. 5. Minnesota Statutes 1998, section 124D.10, 184.29 subdivision 5, is amended to read: 184.30 Subd. 5. [CONVERSION OF EXISTING SCHOOLS.] A board may 184.31 convert one or more of its existing schools to charter schools 184.32 under this section if9060 percent of the full-time teachers at 184.33 the school sign a petition seeking conversion. The conversion 184.34 must occur at the beginning of an academic year. 184.35 Sec. 6. Minnesota Statutes 1998, section 124D.10, 184.36 subdivision 6, is amended to read: 185.1 Subd. 6. [CONTRACT.] The sponsor's authorization for a 185.2 charter school must be in the form of a written contract signed 185.3 by the sponsor and the board of directors of the charter 185.4 school. The contract must be completed within 90 days of the 185.5 state board approval of the sponsor's proposed authorization. 185.6 The contract for a charter school must be in writing and contain 185.7 at least the following: 185.8 (1) a description of a program that carries out one or more 185.9 of the purposes in subdivision 1; 185.10 (2) specific outcomes pupils are to achieve under 185.11 subdivision 10; 185.12 (3) admission policies and procedures; 185.13 (4) management and administration of the school; 185.14 (5) requirements and procedures for program and financial 185.15 audits; 185.16 (6) how the school will comply with subdivisions 8, 13, 16, 185.17 and 23; 185.18 (7) assumption of liability by the charter school; 185.19 (8) types and amounts of insurance coverage to be obtained 185.20 by the charter school; 185.21 (9) the term of the contract, which may be up to three 185.22 years; and 185.23 (10) if the board of directors or the operators of the 185.24 charter school provide special instruction and services for 185.25 children with a disability under sections 125A.03 to 125A.24, 185.26 and 125A.65, a description of the financial parameters within 185.27 which the charter school will operate to provide the special 185.28 instruction and services to children with a disability. 185.29 Sec. 7. Minnesota Statutes 1998, section 124D.10, 185.30 subdivision 11, is amended to read: 185.31 Subd. 11. [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 185.32 charter school must employ or contract with necessary teachers, 185.33 as defined by section 122A.15, subdivision 1, who hold valid 185.34 licenses to perform the particular service for which they are 185.35 employed in the school. The school may employ necessary 185.36 employees who are not required to hold teaching licenses to 186.1 perform duties other than teaching and may contract for other 186.2 services. The school may discharge teachers and nonlicensed 186.3 employees. A person, without holding a valid administrator's 186.4 license, may perform administrative, supervisory, or 186.5 instructional leadership duties. 186.6 The board of directors also shall decide matters related to 186.7 the operation of the school, including budgeting, curriculum and 186.8 operating procedures. 186.9 (Effective date: Section 7 (124D.10, subdivision 11) is 186.10 effective for the 1999-2000 school year and thereafter.) 186.11 Sec. 8. Minnesota Statutes 1998, section 124D.11, 186.12 subdivision 4, is amended to read: 186.13 Subd. 4. [BUILDING LEASE AID.] When a charter school finds 186.14 it economically advantageous to rent or lease a building or land 186.15 for any instructional purposes and it determines that the total 186.16 operating capital revenue under section 126C.10, subdivision 13, 186.17 is insufficient for this purpose, it may apply to the 186.18 commissioner for building lease aid for this purpose. Criteria 186.19 for aid approval and revenue uses shall be as defined for the 186.20 building lease levy in section 126C.40, subdivision 1, 186.21 paragraphs (a) and (b). The amount of building lease aid per 186.22 pupil unit served for a charter school for any year shall not 186.23 exceed the lesser of (a)8090 percent of the approved cost or 186.24 (b) the product of the pupil units served for the current school 186.25 year timesthe sum of the state average debt redemption fund186.26revenue plus capital revenue, according to section 126C.40, per186.27pupil unit served for the current fiscal year$1,500. 186.28 Sec. 9. Minnesota Statutes 1998, section 124D.11, 186.29 subdivision 6, is amended to read: 186.30 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 186.31 school is eligible to receive other aids, grants, and revenue 186.32 according to chapters 120A to 129C, as though it were a district. 186.33except that, notwithstanding section 127A.45, subdivision 3, the186.34payments must be of an equal amount on each of the 23 payment186.35dates unless a charter school is in its first year of operation186.36in which case it shall receive on its first payment date ten187.1percent of its cumulative amount guaranteed for the year and 22187.2payments of an equal amount thereafter the sum of which shall be187.390 percent of the cumulative amount guaranteed. However, it187.4 (b) Notwithstanding paragraph (a), a charter school may not 187.5 receive aid, a grant, or revenue if a levy is required to obtain 187.6 the money, except as otherwise provided in this section. 187.7 (c) Federal aid received by the state must be paid to the 187.8 school, if it qualifies for the aid as though it were a school 187.9 district. 187.10(b)(d) A charter school may receive money from any source 187.11 for capital facilities needs. In the year-end report to the 187.12 state board of education, the charter school shall report the 187.13 total amount of funds received from grants and other outside 187.14 sources. 187.15 (e) Notwithstanding paragraph (a) or (b), a charter school 187.16 is eligible to receive the aid portion of integration revenue 187.17 under section 124D.86, subdivision 3, for enrolled students who 187.18 are residents of a district that is eligible for integration 187.19 revenue. 187.20 Sec. 10. Minnesota Statutes 1998, section 124D.11, is 187.21 amended by adding a subdivision to read: 187.22 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 187.23 Notwithstanding section 127A.45, subdivision 3, aid payments for 187.24 the current fiscal year to a charter school not in its first 187.25 year of operation shall be of an equal amount on each of the 23 187.26 payment dates. A charter school in its first year of operation 187.27 shall receive, on its first payment date, ten percent of its 187.28 cumulative amount guaranteed for the year and 22 payments of an 187.29 equal amount thereafter the sum of which shall be 90 percent of 187.30 the cumulative amount guaranteed. 187.31 (b) Notwithstanding section 127A.45, subdivision 3, and 187.32 paragraph (a), 90 percent of the start-up cost aid under 187.33 subdivision 8 shall be paid within 30 days of receipt of a fall 187.34 enrollment report from the charter school. 187.35 Sec. 11. Minnesota Statutes 1998, section 124D.11, is 187.36 amended by adding a subdivision to read: 188.1 Subd. 10. [COMPENSATION REVENUE PUPIL UNITS; GROWTH 188.2 COSTS.] A charter school that experiences growth in excess of 20 188.3 percent of its compensation revenue pupil units computed 188.4 according to section 126C.05, subdivision 3, in a single year is 188.5 eligible for compensatory revenue equal to the formula allowance 188.6 times the difference between the charter school's compensation 188.7 revenue pupil units in the current year minus the compensation 188.8 revenue pupil units served in the previous year. 188.9 Sec. 12. Minnesota Statutes 1998, section 124D.90, is 188.10 amended to read: 188.11 124D.90 [SCHOOL AND COMMUNITY ENRICHMENT PARTNERSHIP 188.12 PROGRAM.] 188.13 Subdivision 1. [ESTABLISHMENT.] The school and community 188.14 enrichment partnership program is established. The purpose of 188.15 the program is to encourage districts to expand the involvement 188.16 of the community and the private sector in the delivery of 188.17 academic programs. The program will provide matching state 188.18 funds for those provided bytheprivatesectorresources. 188.19 Subd. 2. [REVENUE ELIGIBILITY.] A districtor group of188.20districtsis eligible to receivestate aida grant under this 188.21 program. Districts may enter into joint agreements to provide 188.22 programs or make expenditures under this section. The 188.23 limitations under this subdivision apply to these programs or 188.24 expenditures as if they were operated by a single district. A 188.25 district may receive $1 of stateaidgrant money for each $2 188.26 raised from the private sector. The private match must be in 188.27 the form of cash. Specific types of noncash support may be 188.28 considered for the private match.State aidA grant is limited 188.29 tothe lesser of $75,000 or $10 per pupil unit per188.30district$10,000 per district or $5,000 per school site. 188.31 Subd. 3. [REVENUE MANAGEMENT.] The use of the state and 188.32 private funds provided under this section is under the general 188.33 control of the board. The board may establish, without using 188.34 state funds or public employees, a separate foundation to 188.35 directly manage the funds. Theprivatefunds must be used to 188.36 acquire instructionalor noninstructionalacademic materialsof189.1a capital nature including, but not limited to, textbooks,189.2globes, maps, and other academic materialto support student 189.3 learning. The funds shall not be used for salaries or other 189.4 employee benefits. 189.5 Subd. 4. [PROCEDURES; REPORT.] The Minnesota academic 189.6 excellence foundation, under the direction of the commissioner 189.7 must establish application forms, guidelines, procedures, and 189.8 timelines for the distribution ofstate aida grant. The 189.9 commissioner may require reporting necessary to evaluate the 189.10 program. Measures of success will include numbers of 189.11 partnerships and funds raised; numbers of school foundations 189.12 formed; numbers of volunteers engaged; increased numbers of 189.13 students participating in academic league activities under 189.14 section 124D.94, subdivision 4; and demonstrated linkages of 189.15 partnerships to improved instructional delivery resulting in 189.16 increased student learning. 189.17 Subd. 5. [RESULTS-ORIENTED CHARTER SCHOOLS.] 189.18 Notwithstanding section 124D.11, subdivision 6, paragraph (b), a 189.19 results-oriented charter school is eligible to participate in 189.20 the program under this section as if it were a district. 189.21 Sec. 13. Minnesota Statutes 1998, section 125B.05, 189.22 subdivision 3, is amended to read: 189.23 Subd. 3. [SOFTWARE DEVELOPMENT.]The commissioner may189.24charge school districts or cooperative units for the actual cost189.25of software development used by the district or cooperative189.26unit. Any amount received is annually appropriated to the189.27department of children, families, and learning for this189.28purpose.A school district, charter school, or cooperative unit 189.29 may not implement apayrollfinancial, student, or staff 189.30 software systemafter June 30, 1994,until the system has been 189.31 reviewed by the department to ensure that it provides the 189.32 required data elements and format. 189.33 Sec. 14. Minnesota Statutes 1998, section 272.02, 189.34 subdivision 8, is amended to read: 189.35 Subd. 8. [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 189.36 SCHOOLS.] Property that is leased or rented to a school district 190.1 or a charter school is exempt from taxation if it meets the 190.2 following requirements: 190.3 (1) the lease must be for a period of at least 12 190.4 consecutive months; 190.5 (2) the terms of the lease must require the school district 190.6 or charter school to pay a nominal consideration for use of the 190.7 building; 190.8 (3) the school district or charter school must use the 190.9 property to provide direct instruction in any grade from 190.10 kindergarten through grade 12; special education for handicapped 190.11 children; adult basic education as described in section 124D.52; 190.12 preschool and early childhood family education; or community 190.13 education programs, including provision of administrative 190.14 services directly related to the educational program at that 190.15 site; and 190.16 (4) the lease must provide that the school district or 190.17 charter school has the exclusive use of the property during the 190.18 lease period. 190.19 Sec. 15. Laws 1997, First Special Session chapter 4, 190.20 article 9, section 6, is amended to read: 190.21 Sec. 6. [LEARNING ACADEMY.] 190.22 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 190.23 develop standards and requirements and certify courses for a 190.24 Minnesota learning academy to provide training opportunities for 190.25 educators, administrators, school media and information 190.26 technology professionals, and librarians in the use of 190.27 technology and its integration into learning activities for 190.28 meeting the educational needs of all students. Only certified 190.29 classes may be used to fulfill the requirements of the learning 190.30 academy. 190.31 Subd. 2. [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 190.32 the learning academy, the commissioner shall consult with 190.33 representatives of public schools, higher education, teacher 190.34 organizations, students, private business, state agencies, 190.35 libraries, and political subdivisions to do the following: 190.36 (1) set measures for teacher training opportunities on 191.1 technical skills and technology integration skills; 191.2 (2) identify and establish outcomes for a series of 191.3 training courses that provide for technical skills and 191.4 technology classroom integration skills, including skills to 191.5 enable school media and information specialists to train school 191.6 staff; 191.7 (3) identify existing education organizations, public, or 191.8 private institutions to develop and provide training courses; 191.9 (4) evaluate prerequisites for the classroom integration 191.10 skills course; 191.11 (5) certify or decertify classes and courses for inclusion 191.12 in or exclusion from the learning academy; and 191.13 (6) coordinate and make certified classes and courses 191.14 available to eligible participants. 191.15 Subd. 3. [FUNDING.] The commissioner shall use available 191.16 appropriations to provide start-up and initial operating 191.17 subsidies for the learning academy sites. Appropriated funds 191.18 may also be used to partially subsidize costs of attendees of 191.19 the academy. 191.20 Sec. 16. [BRAIN POWER: BIRTH TO CLASSROOM SYSTEM 191.21 ALIGNMENT PILOT.] 191.22 Subdivision 1. [GOALS.] The goals of the brain power: 191.23 birth to classroom system alignment pilot are to: 191.24 (1) improve academic and social outcomes for young children 191.25 ages birth to eight so that they will be prepared to reach their 191.26 highest academic potential; 191.27 (2) create equity in opportunity in education by the third 191.28 grade; 191.29 (3) encourage the use of different and innovative teaching 191.30 methods designed to maximize learning and based on academic 191.31 research involving brain formation and development; and 191.32 (4) provide for measurable learning achievement. 191.33 Subd. 2. [GRANT APPLICATION.] Early childhood care and 191.34 education service providers serving children ages birth to eight 191.35 may apply to the commissioner of children, families, and 191.36 learning for brain power: birth to classroom funds in addition 192.1 to funding sources which the applicant may be entitled to access 192.2 under existing law. Applicants must submit an application to 192.3 the commissioner in the form prescribed by the commissioner. 192.4 The application must include a detailed description of the 192.5 program including: 192.6 (1) a defined service delivery area and the number of 192.7 children to be served; 192.8 (2) how the pilot will be structured to reflect the 192.9 characteristics of the children, their families, and the 192.10 community involved in the program; 192.11 (3) how the pilot will differ in context, scope, content, 192.12 delivery, or other respects from early childhood care and 192.13 education programming already available through existing state 192.14 and local funding sources; 192.15 (4) how the pilot will integrate professional development 192.16 for staff; and 192.17 (5) what streams of funding the pilot will integrate. 192.18 Subd. 3. [ELIGIBILITY.] Applicants must meet the following 192.19 eligibility criteria: 192.20 (1) applicants must at a minimum consist of a consortia of 192.21 local representatives from the following service delivery 192.22 systems: Head Start; early childhood and family education; 192.23 learning readiness; the child care community, including 192.24 school-age child care; the local schools; public health; and the 192.25 county; 192.26 (2) pilots must operate according to a plan approved by the 192.27 commissioner; 192.28 (3) applicants must agree to utilize, within their first 192.29 year of operation, the work sampling system of child assessment 192.30 and use the early benchmark at age 3-1/2 years as required by 192.31 the commissioner; and 192.32 (4) applicants will be expected to determine indicators and 192.33 demonstrate strategies to achieve a common set of outcomes and 192.34 document processes used to achieve improved outcomes for 192.35 children. 192.36 Sec. 17. [STABILITY DEMONSTRATION PROJECT.] 193.1 A demonstration project involving high mobility schools is 193.2 established in independent school district No. 625, St. Paul, to 193.3 improve student achievement and to provide a model to other 193.4 districts with high mobility schools. Notwithstanding Minnesota 193.5 Statutes, sections 123B.84 to 123B.86, the district may provide 193.6 transportation to students living within the stability zone 193.7 designated by the district to maintain attendance at the same 193.8 school without providing similar transportation to other 193.9 students. The district must match $1 of district money for each 193.10 $2 of grant money received. 193.11 Sec. 18. [BASIC SKILLS INTERVENTION; EXTENDED 193.12 INSTRUCTION.] 193.13 Subdivision 1. [GRANTS.] The commissioner of children, 193.14 families, and learning shall administer grants for fiscal year 193.15 2000 for grants to school sites that offer a basic skills 193.16 intervention program outside of the regular school day, 193.17 including Saturdays. The site shall provide intensive tutoring 193.18 to students who have not yet passed the basic skills tests in 193.19 math or reading. Sites may also offer a program to students 193.20 who, based on the statewide assessments in grades 3 and 5, are 193.21 at risk of failing the basic skills examinations. 193.22 Subd. 2. [APPLICATION PROCESS.] To obtain a grant, a 193.23 school site must submit an application to the commissioner in 193.24 the form and manner established by the commissioner. The 193.25 application must describe how the applicant will provide the 193.26 services described in subdivision 1. 193.27 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 193.28 to school sites who meet the requirements of this section. The 193.29 commissioner must base the amount of the grant on the number of 193.30 children expected to participate in the program. 193.31 Sec. 19. [CLASS SIZE STUDY.] 193.32 The class size study at independent school district No. 12, 193.33 Centennial, shall continue for fiscal years 2000 and 2001. The 193.34 study shall focus on whether or not small class sizes would 193.35 result in statistically significant gains in student achievement 193.36 as defined by the state graduation standards, reductions of 194.1 special education referrals, and reductions in negative behavior 194.2 incidents. The study shall also monitor parent, teacher, and 194.3 student attitudes about lower class sizes. The study shall 194.4 compare a reduced class size group to a control group class with 194.5 a larger student to teacher ratio. The Centennial school 194.6 district shall report to the commissioner of children, families, 194.7 and learning, and to the education committees of the legislature 194.8 by February 1, 2001, on the results of the class size study. 194.9 Sec. 20. [HEALTH PLAN STUDY.] 194.10 The education organizations that participate in the 194.11 development of a report on costs of health insurance for 194.12 kindergarten through grade 12 educators shall report its 194.13 findings to the legislative committees of the legislature by 194.14 February 15, 2000. 194.15 Sec. 21. [APPROPRIATIONS.] 194.16 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 194.17 LEARNING.] The sums indicated in this section are appropriated 194.18 from the general fund to the department of children, families, 194.19 and learning for the fiscal years designated. 194.20 Subd. 2. [STATEWIDE TESTING.] For supporting 194.21 implementation of the graduation standards: 194.22 $9,000,000 ..... 2000 194.23 $9,000,000 ..... 2001 194.24 Any balance in the first year does not cancel but is 194.25 available in the second year. 194.26 Subd. 3. [CHARTER SCHOOL BUILDING LEASE AID.] For building 194.27 lease aid according to Minnesota Statutes, section 124D.11, 194.28 subdivision 4: 194.29 $2,510,000 ..... 2000 194.30 $3,004,000 ..... 2001 194.31 The 2000 appropriation includes $194,000 for 1999 and 194.32 $2,316,000 for 2000. 194.33 The 2001 appropriation includes $273,000 for 2000 and 194.34 $2,731,000 for 2001. 194.35 Subd. 4. [CHARTER SCHOOL START-UP GRANTS.] For charter 194.36 school start-up cost aid under Minnesota Statutes, section 195.1 124D.11: 195.2 $1,689,000 ..... 2000 195.3 $1,776,000 ..... 2001 195.4 The 2000 appropriation includes $100,000 for 1999 and 195.5 $1,589,000 for 2000. 195.6 The 2001 appropriation includes $188,000 for 1999 and 195.7 $1,588,000 for 2001. 195.8 Any balance in the first year does not cancel but is 195.9 available in the second year. This appropriation may also be 195.10 used for grants to convert existing schools into charter schools. 195.11 Subd. 5. [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 195.12 grant to independent school district No. 625, St. Paul, for the 195.13 operation of a community-based school program. The school 195.14 district must report to the legislature on the academic and 195.15 social results of this program by January 15, 2000. 195.16 $3,000,000 ..... 2000 195.17 Any balance in the first year does not cancel but is 195.18 available in the second year. This is a one-time appropriation. 195.19 Subd. 6. [GRADUATION RULE RESOURCE GRANTS.] For graduation 195.20 rule resource grants according to Laws 1998, chapter 398, 195.21 article 5, section 40: 195.22 $7,850,000 ..... 2000 195.23 This appropriation is available until June 30, 2001. 195.24 Of this amount, $400,000 is for a planning grant to 195.25 independent school district No. 112, Chaska, for a project 195.26 involving the Minnesota Arboretum; $100,000 is for the city of 195.27 St. Paul, including the Como Park Zoo; $500,000 is for a current 195.28 recipient of funding from the National Geographic Society 195.29 Education Foundation; $130,000 is for a program offering horse 195.30 riding as an alternative educational program for children with a 195.31 disability; $100,000 is for a Young Inventors Program; $850,000 195.32 is for neighborhood-based programs combining the arts and 195.33 physical education; $100,000 is for programs developing an 195.34 integrated model of technology and environmental learning; 195.35 $250,000 is for programs for violence prevention through the 195.36 arts; $180,000 is for Murphy's Landing; $1,000,000 is for an 196.1 arts via the Internet collaborative project between the Walker 196.2 Art Center and the Minneapolis Institute of Arts; and $500,000 196.3 is for special education graduation rule development. 196.4 Subd. 7. [TALENTED STUDENT PROGRAMS.] For grants to 196.5 talented students programs: 196.6 $2,375,000 ..... 2000 196.7 $1,375,000 ..... 2001 196.8 Notwithstanding Minnesota Statutes, section 120B.13, 196.9 subdivision 3, in each year to the extent of available 196.10 appropriations, the commissioner shall pay all examination fees 196.11 for all students sitting for an advanced placement examination, 196.12 international baccalaureate examination, or both. If this 196.13 amount is not adequate, the commissioner may pay less than the 196.14 full examination fee. 196.15 $1,375,000 each year is for student scholarships. A 196.16 student scholarship shall be awarded to a student for each score 196.17 of three or better on any advanced placement examination and for 196.18 each score of four or better on any international baccalaureate 196.19 examination. The amount of each scholarship shall range from 196.20 $150 to $500 based on the student's score on the exams. The 196.21 scholarships shall be awarded only to students who are enrolled 196.22 in a Minnesota public or private college or university. The 196.23 total amount of each scholarship shall be paid directly to the 196.24 student's designated college or university and must be used by 196.25 the student only for tuition, required fees, and books in 196.26 nonsectarian courses or programs. The higher education services 196.27 office, in consultation with the commissioner, shall determine 196.28 the payment process, the amount of the scholarships, and 196.29 provisions for unused scholarships. 196.30 In order to be eligible to receive advanced placement or 196.31 international baccalaureate scholarships on behalf of the 196.32 qualifying students, the college or university must have an 196.33 advanced placement, international baccalaureate, or both, credit 196.34 and placement policy for the scholarship recipients. In 196.35 addition, each college or university must certify these policies 196.36 to the department each year. The department must provide each 197.1 secondary school in the state with a copy of the post-secondary 197.2 advanced placement and international baccalaureate policies each 197.3 year. 197.4 $500,000 in fiscal year 2000 is for a grant to the South 197.5 Central Service Cooperative for the Minnesota talented youth 197.6 math project operated by the South Central Service Cooperative 197.7 and as fiscal agent for the talented youth math programs 197.8 established and operated by the Northwest Service Cooperative, 197.9 Northeast Service Cooperative, North Central Service 197.10 Cooperative, and Southwest/Central Service Cooperative. 197.11 $500,000 in fiscal year 2000 is for grants to provide 197.12 gifted and talented students with access to appropriate 197.13 programs, consistent with the requirements under Laws 1997, 197.14 First Special Session chapter 4, article 5, section 24. 197.15 Any balance in the first year does not cancel but is 197.16 available in the second year. 197.17 Subd. 8. [CLEARINGHOUSE OF BEST EDUCATIONAL 197.18 PRACTICES.] For the clearinghouse of best educational practices 197.19 under Laws 1998, chapter 398, article 5, section 42: 197.20 $16,037,000 ..... 2000 197.21 This appropriation is available until June 30, 2001. 197.22 Of this amount, $5,000,000 is for a grant to education 197.23 Minnesota to provide three-day best practices seminars during 197.24 the summer of 1999. The seminars shall provide intensive 197.25 professional development for public school teachers on best 197.26 practices and implementing the profile of learning. 197.27 Of this amount, $1,000,000 is for professional development 197.28 grants for programs that utilize best practices in reading and 197.29 $1,200,000 is for Hamline University's center for excellence in 197.30 urban teaching. 197.31 Of this amount, $500,000 is for the Richard Greene 197.32 Institute; $500,000 is for matching funds to make the 197.33 African-American Encyclopedia created by Harvard University 197.34 available in Minnesota schools; $500,000 is for the school and 197.35 community enrichment partnership program according to Minnesota 197.36 Statutes, section 124D.90; $700,000 is for a grant to Shared 198.1 Decisions Minnesota for school restructuring; $500,000 is for 198.2 the Minnesota association of alternative programs; $240,000 is 198.3 for the Minnesota International Center; $500,000 is for the 198.4 Minnesota Children's Museum reading program; $500,000 is for A 198.5 Chance To Grow/New Visions for the Minnesota Learning Resource 198.6 Center; and $2,000,000 is for programs training teachers of 198.7 special needs children. 198.8 The following programs must be considered to receive grant 198.9 money from the clearinghouse of best educational practices to 198.10 further professional development opportunities for teachers: 198.11 programs for technology training; programs implementing best 198.12 practices for English language learners; programs training 198.13 teachers to teach reading; training for violence prevention 198.14 curriculum; training for the use of appropriate positive 198.15 behavioral interventions; programs training teachers to improve 198.16 the academic performance of at-risk children; programs that 198.17 offer staff development for teachers of adult learners; school 198.18 districts that offer teachers extended contracts for additional 198.19 contact days and staff development days; statewide model 198.20 projects using multipurpose Asian media programming, 198.21 multicultural educational applications, or emerging technology; 198.22 and training and workshops approved by the advanced placement or 198.23 international baccalaureate programs. 198.24 Subd. 9. [STUDENT COUNCIL NATIONAL CONVENTION.] For a 198.25 grant to independent school district No. 623, Roseville, for 198.26 transportation costs for the National Association of Student 198.27 Councils' 1999 National Convention to be held June 26 through 198.28 June 30, 1999, at the Roseville Area High School: 198.29 $50,000 ..... 1999 198.30 Subd. 10. [AREA LEARNING CENTER BUILDING LEASE AID.] For 198.31 area learning center building lease aid according to Minnesota 198.32 Statutes, section 123A.05, subdivision 5: 198.33 $2,250,000 ..... 2000 198.34 $6,750,000 ..... 2001 198.35 Subd. 11. [PROPERTY LEASED TO SCHOOL DISTRICTS AND CHARTER 198.36 SCHOOLS.] For property leased charter schools according to 199.1 Minnesota Statutes, section 272.02, subdivision 8: 199.2 $100,000 ..... 2000 199.3 $100,000 ..... 2001 199.4 Subd. 12. [CHARTER SCHOOL INTEGRATION AID.] For new 199.5 integration aid to go to charter schools according to Minnesota 199.6 Statutes, section 124D.11, subdivision 6, paragraph (e): 199.7 $50,000 ..... 2000 199.8 $50,000 ..... 2001 199.9 Any balance in the first year does not cancel but is 199.10 available in the second year. 199.11 Subd. 13. [COMPENSATORY GROWTH COSTS.] For compensatory 199.12 growth costs according to Minnesota Statutes, section 124D.11, 199.13 subdivision 10: 199.14 $100,000 ..... 2000 199.15 $100,000 ..... 2001 199.16 Any balance in the first year does not cancel but is 199.17 available in the second year. 199.18 Subd. 14. [BRAIN POWER: BIRTH TO CLASSROOM.] For the 199.19 purposes of the brain power: birth to classroom system 199.20 alignment project: 199.21 $3,000,000 ..... 2000 199.22 This appropriation is available until June 30, 2001. 199.23 Subd. 15. [STABILITY DEMONSTRATION PROJECT.] For a 199.24 stability demonstration project in independent school district 199.25 No. 625, St. Paul: 199.26 $568,000 ..... 2000 199.27 This appropriation is available until June 30, 2001. 199.28 Subd. 16. [BASIC SKILLS INTERVENTION; EXTENDED 199.29 INSTRUCTION.] For basic skills intervention programs outside of 199.30 the regular school day: 199.31 $500,000 ..... 2000 199.32 This appropriation is available until June 30, 2001. 199.33 Subd. 17. [CLASS SIZE STUDY.] For a grant to independent 199.34 school district No. 12, Centennial, for a class size study: 199.35 $205,000 ..... 2000 199.36 $218,000 ..... 2001 200.1 Any balance remaining the first year does not cancel but is 200.2 available in the second year. 200.3 Subd. 18. [HOMEWORK HOTLINE.] For grants for homework 200.4 hotline providers: 200.5 $100,000 ..... 2000 200.6 $100,000 ..... 2001 200.7 This appropriation is available to assist students with 200.8 homework by telephone or other interactive technology. The 200.9 program providers must offer assistance to students at least 200.10 four days per week. The state aid is contingent upon the 200.11 program matching each $1 of state revenue with $2 of local or 200.12 private funding or in-kind contributions. 200.13 $40,000 each year is for a "save a friend" youth crisis 200.14 hotline. Local or private matching funds are not required for 200.15 this program. 200.16 (Effective date: Section 21, subdivision 9, 200.17 (Appropriations; Convention) is effective the day following 200.18 final enactment.) 200.19 Sec. 22. [EFFECTIVE DATES.] 200.20 When preparing the prekindergarten through grade 12 200.21 education conference committee report for adoption by the 200.22 legislature, the revisor shall combine all effective date 200.23 notations in this article into this effective dates section. 200.24 ARTICLE 6 200.25 OTHER PROGRAMS 200.26 Section 1. Minnesota Statutes 1998, section 120A.24, 200.27 subdivision 1, is amended to read: 200.28 Subdivision 1. [REPORTS TO SUPERINTENDENT.] The person in 200.29 charge of providing instruction to a child must submit the 200.30 following information to the superintendent of the district in 200.31 which the child resides: 200.32 (1) by October 1 of each school year, the name,agebirth 200.33 date, and address of each child receiving instruction; 200.34 (2) the name of each instructor and evidence of compliance 200.35 with one of the requirements specified in section 120A.22, 200.36 subdivision 10; 201.1 (3) an annual instructional calendar; and 201.2 (4) for each child instructed by a parent who meets only 201.3 the requirement of section 120A.22, subdivision 10, clause (6), 201.4 a quarterly report card on the achievement of the child in each 201.5 subject area required in section 120A.22, subdivision 9. 201.6 Sec. 2. Minnesota Statutes 1998, section 123A.48, 201.7 subdivision 10, is amended to read: 201.8 Subd. 10. [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 201.9 board of any independent district maintaining a secondary 201.10 school, the board of any common district maintaining a secondary 201.11 school, all or part of whose land is included in the proposed 201.12 new district, must, within 45 days of the approval of the plat 201.13 by the commissioner, either adopt or reject the plan as proposed 201.14 in the approved plat. If the board of any such district 201.15 entitled to act on the petition rejects the proposal, the 201.16 proceedings are terminated and dismissed. If any board fails to 201.17 act on the plat within the time allowed, the proceedings are 201.18 terminated. If any school board is unable to obtain a majority 201.19 of its members votes to accept or reject the plat and plan, a 201.20 petition of residents of the district unable to obtain a 201.21 majority of votes equal to 20 percent of the votes cast in the 201.22 last school district general election in that district may be 201.23 submitted to the county auditor requesting a public vote to 201.24 accept or reject the plat and plan. The vote shall be scheduled 201.25 on the next available election date. The county auditor shall 201.26 notify the commissioner of the scheduled vote, conduct the 201.27 election in the district, and certify the results of the 201.28 election to the commissioner. Other affected school boards that 201.29 approve the plat and plan may chose to hold an election. If 201.30 elections are conducted in each affected school district, 201.31 results shall be separate and a majority vote to approve the 201.32 plat and plan must be reached in each of the affected 201.33 districts. If the plat and plan are rejected by the voters, a 201.34 new plat and plan cannot be submitted, except by school board 201.35 resolution in a district where the plat and plan were rejected, 201.36 until January 1 of the year following the next school district 202.1 general election. 202.2 Sec. 3. [123B.5751] [DEFINITIONS.] 202.3 Subdivision 1. [SCOPE.] For the purposes of this section 202.4 and section 123B.5752, the terms defined in this section have 202.5 the meanings given them. 202.6 Subd. 2. [PESTICIDE.] "Pesticide" means any substance or 202.7 mixture of substances intended to prevent, destroy, repel, or 202.8 mitigate a pest, and a substance or mixture of substances 202.9 intended for use as a plant regulator, defoliant, or desiccant, 202.10 except that pesticide does not include any disinfectant or 202.11 sanitizer used for cleaning purposes which is a Toxicity 202.12 Category III or IV Pesticide Product. 202.13 Subd. 3. [PEST.] "Pest" means an insect, rodent, nematode, 202.14 fungus, weed, terrestrial or aquatic plant, animal life, virus, 202.15 bacteria, or other organism designated by rule as a pest, except 202.16 a virus, bacteria, or other microorganism on or in living humans 202.17 or other living animals. 202.18 Subd. 4. [SCHOOL DISTRICT.] "School district" means a 202.19 school district defined under section 120A.05, subdivision 8, 202.20 and includes a charter school. 202.21 Subd. 5. [RESTRICTED USE PESTICIDE.] "Restricted use 202.22 pesticide" means a pesticide formulation designated as a 202.23 restricted use pesticide under FIFRA or by the commissioner of 202.24 agriculture under chapter 18B. 202.25 Subd. 6. [TOXICITY CATEGORY I PESTICIDE 202.26 PRODUCT.] "Toxicity Category I Pesticide Product" means any 202.27 pesticide product that meets United States Environmental 202.28 Protection Agency criteria for Toxicity Category I under Code of 202.29 Federal Regulations, title 40, part 156, section 156.10. 202.30 Subd. 7. [TOXICITY CATEGORY II PESTICIDE 202.31 PRODUCT.] "Toxicity Category II Pesticide Product" means any 202.32 pesticide product that meets United States Environmental 202.33 Protection Agency criteria for Toxicity Category II under Code 202.34 of Federal Regulations, title 40, part 156, section 156.10. 202.35 Subd. 8. [TOXICITY CATEGORY III PESTICIDE 202.36 PRODUCT.] "Toxicity Category III Pesticide Product" means any 203.1 pesticide product that meets United States Environmental 203.2 Protection Agency criteria for Toxicity Category III under Code 203.3 of Federal Regulations, title 40, part 156, section 156.10. 203.4 Subd. 9. [TOXICITY CATEGORY IV PESTICIDE PRODUCT.] 203.5 "Toxicity Category IV Pesticide Product" means any pesticide 203.6 product that meets United States Environmental Protection Agency 203.7 criteria for Toxicity Category IV under Code of Federal 203.8 Regulations, title 40, part 156, section 156.10. 203.9 (Effective Date: Section 3 (123B.5751) is effective July 203.10 1, 2000.) 203.11 Sec. 4. [123B.5752] [SCHOOL DISTRICT INTEGRATED PEST 203.12 MANAGEMENT PLAN.] 203.13 Subdivision 1. [PESTICIDE APPLICATION NOTIFICATION.] A 203.14 school district that plans to apply a pesticide which is a 203.15 Toxicity Category I, II, or III Pesticide Product or a 203.16 restricted use pesticide must provide a notice to parents and 203.17 employees that it is applying such pesticides. 203.18 Subd. 2. [NOTICE AVAILABILITY.] The notice must be 203.19 provided at least annually to the parent or guardian of each 203.20 student and to each employee. The notice may be included in any 203.21 other notice that is provided to a parent or guardian or 203.22 employee. 203.23 Subd. 3. [PLAN.] If a school board adopts a pest 203.24 management plan, the plan must include the following: 203.25 (1) identifying pests which need to be controlled; 203.26 (2) establishing tolerable limits of each identified pest; 203.27 (3) designing future buildings and landscapes to prevent 203.28 identified pests; 203.29 (4) excluding identified pests from sites and buildings 203.30 using maintenance practices; 203.31 (5) adapting cleaning activities and best management 203.32 practices to minimize the number of pests; 203.33 (6) using mechanical methods of controlling identified 203.34 pests; and 203.35 (7) controlling identified pests using the least toxic 203.36 pesticides with the least exposure to persons as is practicable. 204.1 (Effective Date: Section 4 (123B.5752) is effective July 204.2 1, 2000.) 204.3 Sec. 5. [124D.1155] [FAST BREAK TO LEARNING REVENUE.] 204.4 Subdivision 1. [APPLICATION PROCESS.] To receive revenue 204.5 for providing breakfasts to all children, a public elementary 204.6 school that participates in the federal school breakfast and 204.7 lunch programs must submit an application to the commissioner in 204.8 the form and manner the commissioner prescribes. The 204.9 application must describe how the applicant will encourage all 204.10 children in the school to participate in the breakfast program. 204.11 The applicant must also demonstrate to the commissioner that the 204.12 applicant will collect a $1 local match of funding for every $3 204.13 of state funding the applicant receives. The applicant must 204.14 raise the local match either by charging student households not 204.15 eligible for federal free or reduced price meals or by 204.16 soliciting funds or in-kind contributions from nonpublic 204.17 sources. The applicant can determine the method for charging 204.18 student households for school breakfast however it must include 204.19 a consideration of the household's ability to pay. The 204.20 applicant cannot collect local funds from student households for 204.21 school breakfast that exceeds the difference between the revenue 204.22 from federal and state aids and the actual cost of providing the 204.23 breakfast. The commissioner may require additional information 204.24 from the applicant. 204.25 Subd. 2. [REVENUE AMOUNT.] School sites that received 204.26 grants under Laws 1997, First Special Session chapter 4, article 204.27 6, section 19, are eligible for revenue under this section and 204.28 shall receive grants. For fiscal year 2000 and later, the 204.29 commissioner shall determine the revenue amount for school sites 204.30 according to need as determined by the percentage of students 204.31 enrolled in the school who are eligible for federal free or 204.32 reduced price meals and that meet the requirements of this 204.33 section until funding under this section is expended. The 204.34 commissioner shall determine the amount of the revenue using 204.35 average statewide statistics and individual school statistics 204.36 adjusted for other state and federal reimbursements. Revenue 205.1 recipients must use the proceeds to provide breakfast to school 205.2 children every day school is in session. 205.3 Sec. 6. Minnesota Statutes 1998, section 126C.46, is 205.4 amended to read: 205.5 126C.46 [ABATEMENT LEVY.] 205.6 (a) Each year, a school district may levy an amount to 205.7 replace the net revenue lost to abatements that have occurred 205.8 under chapter 278, section 270.07, 375.192, or otherwise. The 205.9 maximum abatement levy is the sum of: 205.10 (1) the amount of the net revenue loss determined under 205.11 section 127A.49, subdivision 2, that is not paid in state aid 205.12 including any aid amounts not paid due to proration; 205.13 (2) the difference of (i) the amount of any abatements that 205.14 have been reported by the county auditor for the first six 205.15 months of the calendar year during which the abatement levy is 205.16 certified that the district chooses to levy, (ii) less any 205.17 amount actually levied under this clause that was certified in 205.18 the previous calendar year for the first six months of the 205.19 previous calendar year; and 205.20 (3) an amount equal to any interest paid on abatement 205.21 refunds. 205.22 (b) A district may spread this levy over a period not to 205.23 exceedthreetwo years. With the approval of the commissioner, 205.24 a district may spread this levy over a period not to exceed 205.25 three years. 205.26 By July 15, the county auditor shall separately report the 205.27 abatements that have occurred during the first six calendar 205.28 months of that year to the commissioner and each district 205.29 located within the county. 205.30 Sec. 7. [LEVY AUTHORITY; CONTINUATION.] 205.31 Subdivision 1. [EXTENSION OF AUTHORITY.] The levy 205.32 authority granted under Laws 1992, chapter 499, article 6, 205.33 section 35, to the Lac qui Parle joint powers district is 205.34 extended to independent school district No. 2853, Lac qui Parle 205.35 Valley. 205.36 Subd. 2. [LEVY AUTHORITY.] For taxes payable in 2000 to 206.1 2004, independent school district No. 2853, Lac qui Parle 206.2 Valley, may levy an amount not to exceed $80,000 for costs 206.3 associated with operating the cooperative secondary high school. 206.4 (Effective Date: Section 7 (levy authority) is effective 206.5 for taxes payable in 2000.) 206.6 Sec. 8. [APPROPRIATIONS.] 206.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 206.8 LEARNING.] The sums indicated in this section are appropriated 206.9 from the general fund to the department of children, families, 206.10 and learning for the fiscal years designated. 206.11 Subd. 2. [ABATEMENT AID.] For abatement aid according to 206.12 Minnesota Statutes, section 127A.49: 206.13 $9,110,000 ..... 2000 206.14 $8,947,000 ..... 2001 206.15 The 2000 appropriation includes $1,352,000 for 1999 and 206.16 $7,758,000 for 2000. 206.17 The 2001 appropriation includes $861,000 for 2000 and 206.18 $8,086,000 for 2001. 206.19 Subd. 3. [NONPUBLIC PUPIL AID.] For nonpublic pupil 206.20 education aid according to Minnesota Statutes, sections 123B.40 206.21 to 123B.48 and 123B.87: 206.22 $10,996,000 ..... 2000 206.23 $11,878,000 ..... 2001 206.24 The 2000 appropriation includes $970,000 for 1999 and 206.25 $10,026,000 for 2000. 206.26 The 2001 appropriation includes $1,114,000 for 2000 and 206.27 $10,764,000 for 2001. 206.28 The department shall recompute the maximum allotments 206.29 established on March 1, 1999, for fiscal year 2000 under 206.30 Minnesota Statutes, sections 123B.42, subdivision 3, and 206.31 123B.44, subdivision 6, to reflect the amount appropriated in 206.32 this subdivision for fiscal year 2000. 206.33 Subd. 4. [CONSOLIDATION TRANSITION AID.] For districts 206.34 consolidating under Minnesota Statutes, section 123A.485: 206.35 $451,000 ..... 2000 206.36 $375,000 ..... 2001 207.1 The 2000 appropriation includes $113,000 for 1999 and 207.2 $338,000 for 2000. 207.3 The 2001 appropriation includes $37,000 for 2000 and 207.4 $338,000 for 2001. 207.5 Any balance in the first year does not cancel but is 207.6 available in the second year. 207.7 Subd. 5. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 207.8 pupil transportation aid under Minnesota Statutes, section 207.9 123B.92, subdivision 9: 207.10 $18,552,000 ..... 2000 207.11 $20,880,000 ..... 2001 207.12 The 2000 appropriation includes $1,848,000 for 2000 and 207.13 $16,674,000 for 2001. 207.14 The 2001 appropriation includes $1,852,000 for 2000 and 207.15 $19,028,000 for 2001. 207.16 Subd. 6. [SCHOOL LUNCH.] (a) For school lunch aid 207.17 according to Minnesota Statutes, section 124D.111, and Code of 207.18 Federal Regulations, title 7, section 210.17, and for school 207.19 milk aid according to Minnesota Statutes, section 124D.118: 207.20 $7,770,000 ..... 2000 207.21 $7,770,000 ..... 2001 207.22 (b) Any unexpended balance remaining from the 207.23 appropriations in this subdivision shall be prorated among 207.24 participating schools based on the number of free, reduced, and 207.25 fully paid federally reimbursable student lunches served during 207.26 that school year. 207.27 (c) If the appropriation amount attributable to either year 207.28 is insufficient, the rate of payment for each fully paid student 207.29 lunch shall be reduced and the aid for that year shall be 207.30 prorated among participating schools so as not to exceed the 207.31 total authorized appropriation for that year. 207.32 (d) Not more than $800,000 of the amount appropriated each 207.33 year may be used for school milk aid. 207.34 Subd. 7. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 207.35 food service replacement aid under Minnesota Statutes, section 207.36 124D.119: 208.1 $150,000 ..... 2000 208.2 $150,000 ..... 2001 208.3 Subd. 8. [FAST BREAK TO LEARNING REVENUE.] For fast break 208.4 to learning revenue under Minnesota Statutes, section 124D.1155: 208.5 $15,000,000 ..... 2000 208.6 $15,000,000 ..... 2001 208.7 Any balance in the first year does not cancel but is 208.8 available in the second year. 208.9 Subd. 9. [HIV EDUCATION TRAINING SITES.] For regional 208.10 training sites for HIV education in schools established 208.11 according to Laws 1997, First Special Session chapter 4, article 208.12 6, section 18: 208.13 $458,000 ..... 2000 208.14 Of this amount, $150,000 must be used for continued 208.15 development of the existing sites; $150,000 for adding two 208.16 additional training sites; $75,000 for coordination, technical 208.17 assistance, evaluation, and contract management services for the 208.18 sites; and $50,000 for a report and recommendations on the 208.19 effectiveness of HIV education in public schools according to 208.20 Minnesota Statutes, section 121A.23. 208.21 This appropriation is available until June 30, 2001. 208.22 Subd. 10. [TRANSPORTATION GRANTS.] For grants to school 208.23 districts that use public transportation to transport secondary 208.24 students to and from school: 208.25 $200,000 ..... 2000 208.26 Districts receiving transportation grants must match $1 of 208.27 district money for each $1 of grant money received. 208.28 This appropriation is available until June 30, 2001. 208.29 Subd. 11. [SCHOOL BREAKFAST.] To operate the school 208.30 breakfast program: 208.31 $456,000 ..... 2000 208.32 $456,000 ..... 2001 208.33 Any balance in the first year does not cancel but is 208.34 available in the second year. 208.35 Subd. 12. [MAGNET SCHOOL GRANTS.] (a) For magnet school 208.36 grants: 209.1 $2,350,000 ..... 2000 209.2 (b) Up to $250,000 of this amount may be used for planning 209.3 a magnet school in the metropolitan area on land that is 209.4 currently owned by the state or federal government. Up to 209.5 $250,000 of this appropriation is for planning grants for 209.6 specialty high school programs. Specialty high school programs 209.7 may include a cooperative program with a higher education 209.8 institution to provide either a grade 9 through 16 program or a 209.9 grade 11 through 14 program. 209.10 (c) Of this amount, $1,200,000 is for the discovery magnet 209.11 school in independent school district No. 347, Willmar, for 209.12 capital and operating costs of the magnet school serving 209.13 children from birth through grade 4. 209.14 (d) Of this amount, $350,000 is for a planning grant for an 209.15 urban agricultural high school for curriculum, design, 209.16 coordination with the state's graduation standards, demographic 209.17 research, development of partnerships, site acquisition, market 209.18 assessment of student interest, collaboration with the local 209.19 municipality and school district on any proposed site prior to 209.20 acquisition, and facility predesign purposes. 209.21 (e) Of this amount, $300,000 is to independent school 209.22 district No. 696, Ely, to determine the feasibility of 209.23 establishing a joint secondary and higher education 209.24 environmental studies magnet school. 209.25 (f) This appropriation is available until June 30, 2001. 209.26 Subd. 13. [ONE ROOM SCHOOLHOUSE.] For a grant to 209.27 independent school district No. 690, Warroad, to operate the 209.28 Angle Inlet School: 209.29 $25,000 ..... 2000 209.30 $25,000 ..... 2001 209.31 Subd. 14. [INTEGRATED PEST MANAGEMENT TRAINING AND 209.32 MANUAL.] For training and developing a how-to manual on 209.33 integrated pest management in schools: 209.34 $50,000 ..... 2000 209.35 The Minnesota extension service must provide the department 209.36 of children, families, and learning with appropriate information 210.1 concerning integrated pest management in schools using resources 210.2 already developed by other states or the federal government. 210.3 This appropriation is available until June 30, 2001. 210.4 Sec. 9. [REPEALER.] 210.5 Minnesota Statutes 1998, sections 124D.112; 124D.113; and 210.6 124D.116, are repealed. 210.7 Sec. 10. [EFFECTIVE DATE.] 210.8 When preparing the prekindergarten through grade 12 210.9 education conference committee report for adoption by the 210.10 legislature, the revisor shall combine all effective date 210.11 notations in this article into this effective date section. 210.12 ARTICLE 7 210.13 EDUCATION POLICY 210.14 Section 1. Minnesota Statutes 1998, section 120A.40, is 210.15 amended to read: 210.16 120A.40 [SCHOOL CALENDAR.] 210.17 (a) Except for learning programs during summer, flexible 210.18 learning year programs authorized under sections 124D.12 to 210.19 124D.127, and learning year programs under section 124D.128, a 210.20 district must not commence an elementary or secondary school 210.21 yearprior tobefore September 1, except as provided under 210.22 paragraph (b). Dayswhich aredevoted to teachers' workshops 210.23 may be held before September 1. Districts that enter into 210.24 cooperative agreements are encouraged to adopt similar school 210.25 calendars. 210.26 (b) A district may begin the school year on any day before 210.27 September 1 to accommodate a construction or remodeling project 210.28 of $400,000 or more affecting a district school facility. 210.29 (Effective Date: Notwithstanding any law to the contrary, 210.30 section 1 (120A.40) is effective for the 1999-2000 school year 210.31 and thereafter.) 210.32 Sec. 2. Minnesota Statutes 1998, section 120B.30, 210.33 subdivision 1, is amended to read: 210.34 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 210.35 with advice from experts with appropriate technical 210.36 qualifications and experience and stakeholders, shall include in 211.1 the comprehensive assessment system, for each grade level to be 211.2 tested, a single statewide norm-referenced or 211.3 criterion-referenced test, or a combination of a norm-referenced 211.4 and a criterion-referenced test, which shall be highly 211.5 correlated with the state's graduation standards and 211.6 administered annually to all students in the third, fifth, and 211.7 eighth grades. The commissioner shall establish one or more 211.8 months during which schools shall administer the tests to 211.9 students each school year. Only Minnesota basic skills tests in 211.10 reading, mathematics, and writing shall fulfill students' 211.11 testing requirements for a passing state notation. 211.12 (b) In addition, at the secondary level, districts shall 211.13 assess student performance in all required learning areas and 211.14 selected required standards within each area of the profile of 211.15 learning. The testing instruments and testing process shall be 211.16 determined by the commissioner. The results shall be aggregated 211.17 at the site and district level. The testing shall be 211.18 administered beginning in the 1999-2000 school year and 211.19 thereafter. 211.20 (c) The comprehensive assessment system shall include an 211.21 evaluation of school site and school district performance levels 211.22 during the 1997-1998 school year and thereafter using an 211.23 established performance baseline developed from students' test 211.24 scores under this section that records, at a minimum, students' 211.25 unweighted mean test scores in each tested subject, a second 211.26 performance baseline that reports, at a minimum, the same 211.27 unweighted mean test scores of only those students enrolled in 211.28 the school by January 1 of the previous school year, and a third 211.29 performance baseline that reports the same unweighted test 211.30 scores of all students except those students receiving limited 211.31 English proficiency instruction. The evaluation also shall 211.32 record separately, in proximity to the performance baselines, 211.33 the percentages of students who are eligible to receive a free 211.34 or reduced price school meal, demonstrate limited English 211.35 proficiency, or are eligible to receive special education 211.36 services. 212.1 (d) In addition to the testing and reporting requirements 212.2 under paragraphs (a), (b), and (c), the commissioner, in212.3consultation with the state board of education,shall include 212.4 the following components in the statewide educational 212.5 accountability and public reporting system: 212.6 (1) uniform statewide testing of all third, fifth, eighth, 212.7 and post-eighth grade students with exemptions, only with parent 212.8 or guardian approval, from the testing requirement only for 212.9 those very few students for whom the student's individual 212.10 education plan team under sections 125A.05 and 125A.06, 212.11 determines that the student is incapable of taking a statewide 212.12 test, or a limited English proficiency student under section 212.13 124D.59, subdivision 2, if the student has been in the United 212.14 States for fewer than 12 months and for whom special language 212.15 barriers exist, such as the student's native language does not 212.16 have a written form or the district does not have access to 212.17 appropriate interpreter services for the student's native 212.18 language; 212.19 (2) educational indicators that can be aggregated and 212.20 compared across school districts and across time on a statewide 212.21 basis; 212.22 (3) students' scores on the American College Test; 212.23 (4) participation in the National Assessment of Educational 212.24 Progress so that the state can benchmark its performance against 212.25 the nation and other states, and, where possible, against other 212.26 countries, and contribute to the national effort to monitor 212.27 achievement; and 212.28 (5) basic skills and advanced competencies connecting 212.29 teaching and learning to high academic standards, assessment, 212.30 and transitions to citizenship and employment. 212.31 (e) Districts must report exemptions under paragraph (d), 212.32 clause (1), to the commissioner consistent with a format 212.33 provided by the commissioner. 212.34 (Effective Date: Section 2 (120B.30, subdivision 1) is 212.35 effective December 31, 1999.) 212.36 Sec. 3. Minnesota Statutes 1998, section 120B.35, is 213.1 amended to read: 213.2 120B.35 [STUDENT ACHIEVEMENT LEVELS.] 213.3 (a) Each school year, a school district must determine if 213.4 the student achievement levels at each school site meet state 213.5 expectations. If student achievement levels at a school site do 213.6 not meet state expectations for two out of three consecutive 213.7 school years, beginning with the1999-20002000-2001 school 213.8 year, the district must work with the school site to adopt a 213.9 plan to raise student achievement levels to state expectations. 213.10 The legislature will determine state expectations after 213.11 receiving a recommendation from the commissioner of children, 213.12 families, and learning. The commissioner must submitits213.13 recommendations to the legislature byDecember 15, 1998January 213.14 15, 2000. The recommended model must measure both yearly 213.15 progress against an established baseline and also make 213.16 comparisons to state expectations. 213.17 (b) The department must assist the district and the school 213.18 site in developing a plan to improve student achievement. The 213.19 plan must include parental involvement components. 213.20 Sec. 4. Minnesota Statutes 1998, section 121A.61, 213.21 subdivision 1, is amended to read: 213.22 Subdivision 1. [REQUIRED POLICY.] Each school board must 213.23 adopt a written districtwide school discipline policy which 213.24 includes written rules of conduct for students, minimum 213.25 consequences for violations of the rules, and grounds and 213.26 procedures for removal of a student from class. The policy must 213.27 be developed in consultation withthe participation of213.28 administrators, teachers, employees, pupils, parents, community 213.29 members, law enforcement agencies, county attorney offices, 213.30 social service agencies, and such other individuals or 213.31 organizations as the board determines appropriate. A school 213.32 site council may adopt additional provisions to the policy 213.33 subject to the approval of the school board. 213.34 Sec. 5. [121A.68] [CRISIS MANAGEMENT POLICY.] 213.35 Subdivision 1. [MODEL POLICY.] By September 1, 1999, the 213.36 commissioner shall maintain and make available to school boards 214.1 a model crisis management policy. 214.2 Subd. 2. [SCHOOL DISTRICT POLICY.] By January 15, 2000, a 214.3 school board must adopt a district crisis management policy to 214.4 address potential violent crisis situations in the district. 214.5 The policy must be developed in consultation with 214.6 administrators, teachers, employees, students, parents, 214.7 community members, law enforcement agencies, county attorney 214.8 offices, social service agencies, and any other appropriate 214.9 individuals or organizations. 214.10 Sec. 6. Minnesota Statutes 1998, section 122A.09, 214.11 subdivision 4, is amended to read: 214.12 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 214.13 rules to license public school teachers and interns subject to 214.14 chapter 14. 214.15 (b) The board must adopt rules requiring a person to 214.16 successfully complete a skills examination in reading, writing, 214.17 and mathematics as a requirement for initial teacher licensure. 214.18 Such rules must require college and universities offering a 214.19 board approved teacher preparation program to provide remedial 214.20 assistance to persons who did not achieve a qualifying score on 214.21 the skills examination, including those for whom English is a 214.22 second language. 214.23 (c) The board must adopt rules to approve teacher 214.24 preparation programs. The board, upon the request of a teacher 214.25 trainee seeking licensure or a licensed graduate of a teacher 214.26 preparation program, and subject to chapter 14, must hold a 214.27 hearing to resolve matters affecting the components of a teacher 214.28 preparation program. 214.29 (d) The board must provide the leadership and shall adopt 214.30 rules for the redesign of teacher education programs to 214.31 implement a research based, results-oriented curriculum that 214.32 focuses on the skills teachers need in order to be effective. 214.33 The board shall implement new systems of teacher preparation 214.34 program evaluation to assure program effectiveness based on 214.35 proficiency of graduates in demonstrating attainment of program 214.36 outcomes. 215.1 (e) The board must adopt rules requiring successful 215.2 completion of an examination of general pedagogical knowledge 215.3 and examinations of licensure-specific teaching skills. The 215.4 rules shall be effective on the dates determined by the board, 215.5 but not later thanJuly 1, 1999September 1, 2001. 215.6 (f) The board must adopt rules requiring teacher educators 215.7 to work directly with elementary or secondary school teachers in 215.8 elementary or secondary schools to obtain periodic exposure to 215.9 the elementary or secondary teaching environment. 215.10 (g) The board must grant licenses to interns and to 215.11 candidates for initial licenses. 215.12 (h) The board must design and implement an assessment 215.13 system which requires a candidate for an initial license and 215.14 first continuing license to demonstrate the abilities necessary 215.15 to perform selected, representative teaching tasks at 215.16 appropriate levels. 215.17 (i) The board must receive recommendations from local 215.18 committees as established by the board for the renewal of 215.19 teaching licenses. 215.20 (j) The board must grant life licenses to those who qualify 215.21 according to requirements established by the board, and suspend 215.22 or revoke licenses pursuant to sections 122A.20 and 214.10. The 215.23 board must not establish any expiration date for application for 215.24 life licenses. 215.25 (k) The board must adopt rules that require all licensed 215.26 teachers who are renewing their continuing license to include in 215.27 their renewal requirements further preparation in the areas of 215.28 using positive behavior interventions and in accommodating, 215.29 modifying, and adapting curricula, materials, and strategies to 215.30 appropriately meet the needs of individual students and ensure 215.31 adequate progress toward the state's graduation rule. The rules 215.32 adopted under this paragraph apply to teachers who renew their 215.33 licenses in year 2001 and later. 215.34 (l) In adopting rules to license public school teachers who 215.35 provide health-related services for disabled children, the board 215.36 shall adopt rules consistent with license or registration 216.1 requirements of the commissioner of health and the 216.2 health-related boards who license personnel who perform similar 216.3 services outside of the school. 216.4 (Effective Date: Section 6, paragraphs (c) and (e) 216.5 (122A.09, subdivision 4), are effective the day following final 216.6 enactment.) 216.7 Sec. 7. Minnesota Statutes 1998, section 122A.18, is 216.8 amended by adding a subdivision to read: 216.9 Subd. 7a. [PERMISSION TO SUBSTITUTE TEACH.] The board of 216.10 teaching may allow a person who is enrolled in and making 216.11 satisfactory progress in a board-approved teacher program and 216.12 who has successfully completed student teaching to be employed 216.13 as a short-call substitute teacher. 216.14 Sec. 8. Minnesota Statutes 1998, section 122A.18, is 216.15 amended by adding a subdivision to read: 216.16 Subd. 10. [READING STRATEGIES.] All colleges and 216.17 universities approved by the board of teaching to prepare 216.18 persons for classroom teacher licensure must include in their 216.19 teacher preparation programs reading best practices that enable 216.20 classroom teacher licensure candidates to know how to teach 216.21 reading, such as phonics or other research-based best practices. 216.22 Sec. 9. Minnesota Statutes 1998, section 122A.19, 216.23 subdivision 4, is amended to read: 216.24 Subd. 4. [TEACHER PREPARATION PROGRAMS.] For the purpose 216.25 of licensing bilingual and English as a second language 216.26 teachers, the board may approve programs at colleges or 216.27 universities designed for their trainingsubject to the approval216.28of the state board of education. 216.29 (Effective Date: Section 9 (122A.19, subdivision 4) is 216.30 effective December 31, 1999.) 216.31 Sec. 10. Minnesota Statutes 1998, section 122A.20, 216.32 subdivision 1, is amended to read: 216.33 Subdivision 1. [GROUNDS FOR REVOCATION, SUSPENSION, OR 216.34 DENIAL.] The board of teachingor the state board of education,216.35 or the commissioner, with the advice from an advisory task force 216.36 of supervisory personnel established under section 15.014, 217.1 whichever has jurisdiction over a teacher's licensure, may, on 217.2 the written complaint of the school board employing a teacher, a 217.3 teacher organization, or any other interested person, refuse to 217.4 issue, refuse to renew, suspend, or revoke a teacher's license 217.5 to teach for any of the following causes: 217.6 (1) Immoral character or conduct; 217.7 (2) Failure, without justifiable cause, to teach for the 217.8 term of the teacher's contract; 217.9 (3) Gross inefficiency or willful neglect of duty; or 217.10 (4) Failure to meet licensure requirements; or 217.11 (5) Fraud or misrepresentation in obtaining a license. 217.12 The written complaint must specify the nature and character 217.13 of the charges. For purposes of this subdivision, the board of 217.14 teaching is delegated the authority to suspend or revoke 217.15 coaching licensesunder the jurisdiction of the state board of217.16education. 217.17 (Effective Date: Section 10 (122A.20, subdivision 1) is 217.18 effective December 31, 1999.) 217.19 Sec. 11. Minnesota Statutes 1998, section 122A.20, 217.20 subdivision 2, is amended to read: 217.21 Subd. 2. [MANDATORY REPORTING.] A school board must report 217.22 to the board of teaching, the state board of education,or the 217.23 board of trustees of the Minnesota state colleges and 217.24 universities, whichever has jurisdiction over the teacher's 217.25 license, when its teacher is discharged or resigns from 217.26 employment after a charge is filed with the school board under 217.27 section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 217.28 7, or after charges are filed that are ground for discharge 217.29 under section 122A.40, subdivision 13, clauses (a), (b), (c), 217.30 (d), and (e), or when a teacher is suspended or resigns while an 217.31 investigation is pending under section 122A.40, subdivision 13, 217.32 clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 217.33 clauses (1), (2), and (3), and 7; or 626.556. The report must 217.34 be made to the appropriate licensing board within ten days after 217.35 the discharge, suspension, or resignation has occurred. The 217.36 licensing board to which the report is made must investigate the 218.1 report for violation of subdivision 1 and the reporting board 218.2 must cooperate in the investigation. Notwithstanding any 218.3 provision in chapter 13 or any law to the contrary, upon written 218.4 request from the licensing board having jurisdiction over the 218.5 teacher's license, a board or school superintendent shall 218.6 provide the licensing board with information about the teacher 218.7 from the district's files, any termination or disciplinary 218.8 proceeding, any settlement or compromise, or any investigative 218.9 file. Upon written request from the appropriate licensing 218.10 board, a board or school superintendent may, at the discretion 218.11 of the board or school superintendent, solicit the written 218.12 consent of a student and the student's parent to provide the 218.13 licensing board with information that may aid the licensing 218.14 board in its investigation and license proceedings. The 218.15 licensing board's request need not identify a student or parent 218.16 by name. The consent of the student and the student's parent 218.17 must meet the requirements of chapter 13 and Code of Federal 218.18 Regulations, title 34, section 99.30. The licensing board may 218.19 provide a consent form to the district. Any data transmitted to 218.20 any board under this section is private data under section 218.21 13.02, subdivision 12, notwithstanding any other classification 218.22 of the data when it was in the possession of any other agency. 218.23 The licensing board to which a report is made must transmit 218.24 to the attorney general's office any record or data it receives 218.25 under this subdivision for the sole purpose of having the 218.26 attorney general's office assist that board in its 218.27 investigation. When the attorney general's office has informed 218.28 an employee of the appropriate licensing board in writing that 218.29 grounds exist to suspend or revoke a teacher's license to teach, 218.30 that licensing board must consider suspending or revoking or 218.31 decline to suspend or revoke the teacher's license within 45 218.32 days of receiving a stipulation executed by the teacher under 218.33 investigation or a recommendation from an administrative law 218.34 judge that disciplinary action be taken. 218.35 (Effective Date: Section 11 (122A.20, subdivision 2) is 218.36 effective December 31, 1999.) 219.1 Sec. 12. Minnesota Statutes 1998, section 122A.21, is 219.2 amended to read: 219.3 122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 219.4 Each application for the issuance, renewal, or extension of 219.5 a license to teach and each application for the issuance, 219.6 renewal, or extension of a license as supervisory personnel must 219.7 be accompanied by a processing fee in an amount set by the board 219.8 of teaching by rule.Each application for the issuance,219.9renewal, or extension of a license as supervisory personnel must219.10be accompanied by a processing fee in an amount set by the state219.11board of education by rule.The processing fee for a teacher's 219.12 license and for the licenses of supervisory personnel must be 219.13 paid to the executive secretary of the board of teaching.The219.14processing fee for the licenses of supervisory personnel must be219.15paid to the commissioner.The executive secretary of the board 219.16 of teachingand the commissionershall deposit the fees with the 219.17 state treasurer, as provided by law, and report each month to 219.18 the commissioner of finance the amount of fees collected. The 219.19 fees as set by theboardsboard are nonrefundable for applicants 219.20 not qualifying for a license. However, a fee must be refunded 219.21 by the state treasurer in any case in which the applicant 219.22 already holds a valid unexpired license. Theboardsboard may 219.23 waive or reduce fees for applicants who apply at the same time 219.24 for more than one license, even if the licenses are under the219.25jurisdiction of different boards. 219.26 (Effective Date: Section 12 (122A.21) is effective 219.27 December 31, 1999.) 219.28 Sec. 13. Minnesota Statutes 1998, section 122A.40, 219.29 subdivision 5, is amended to read: 219.30 Subd. 5. [PROBATIONARY PERIOD.] The first three 219.31 consecutive years of a teacher's first teaching experience in 219.32 Minnesota in a single district is deemed to be a probationary 219.33 period of employment, and after completion thereof, the 219.34 probationary period in each district in which the teacher is 219.35 thereafter employed shall be one year. The school board must 219.36 adopt a plan for written evaluation of teachers during the 220.1 probationary period. Evaluation must occur at least three times 220.2 each year for a teacher performing services on 120 or more 220.3 school days, at least two times each year for a teacher 220.4 performing services on 60 to 119 school days, and at least one 220.5 time each year for a teacher performing services on fewer than 220.6 60 school days. Days devoted to parent-teacher conferences, 220.7 teachers' workshops, and other staff development opportunities 220.8 and days on which a teacher is absent from school must not be 220.9 included in determining the number of school days on which a 220.10 teacher performs services. During the probationary period any 220.11 annual contract with any teacher may or may not be renewed as 220.12 the school board shall see fit. However, the board must give 220.13 any such teacher whose contract it declines to renew for the 220.14 following school year written notice to that effect beforeJune220.151August 1. If the teacher requests reasons for any nonrenewal 220.16 of a teaching contract, the board must give the teacher its 220.17 reason in writing, including a statement that appropriate 220.18 supervision was furnished describing the nature and the extent 220.19 of such supervision furnished the teacher during the employment 220.20 by the board, within ten days after receiving such request. The 220.21 school board may, after a hearing held upon due notice, 220.22 discharge a teacher during the probationary period for cause, 220.23 effective immediately, under section 122A.44. 220.24 Sec. 14. Minnesota Statutes 1998, section 122A.40, 220.25 subdivision 7, is amended to read: 220.26 Subd. 7. [TERMINATION OF CONTRACT AFTER PROBATIONARY 220.27 PERIOD.] A teacher who has completed a probationary period in 220.28 any district, and who has not been discharged or advised of a 220.29 refusal to renew the teacher's contract pursuant to subdivision 220.30 5, shall have a continuing contract with such district. 220.31 Thereafter, the teacher's contract must remain in full force and 220.32 effect, except as modified by mutual consent of the board and 220.33 the teacher, until terminated by a majority roll call vote of 220.34 the full membership of the board prior to April 1 upon one of 220.35 the grounds specified in subdivision 9 or prior toJuneAugust 1 220.36 upon one of the grounds specified in subdivision 10 or 11, or 221.1 until the teacher is discharged pursuant to subdivision 13, or 221.2 by the written resignation of the teacher submitted prior to 221.3 April 1. If an agreement as to the terms and conditions of 221.4 employment for the succeeding school year has not been adopted 221.5 pursuant to the provisions of sections 179A.01 to 179A.25 prior 221.6 to March 1, the teacher's right of resignation is extended to 221.7 the 30th calendar day following the adoption of said contract in 221.8 compliance with section 179A.20, subdivision 5. Such written 221.9 resignation by the teacher is effective as of June 30 if 221.10 submitted prior to that date and the teachers' right of 221.11 resignation for the school year then beginning shall cease on 221.12 July 15. Before a teacher's contract is terminated by the 221.13 board, the board must notify the teacher in writing and state 221.14 its ground for the proposed termination in reasonable detail 221.15 together with a statement that the teacher may make a written 221.16 request for a hearing before the board within 14 days after 221.17 receipt of such notification. If the grounds are those 221.18 specified in subdivision 9 or 13, the notice must also state a 221.19 teacher may request arbitration under subdivision 15. Within 14 221.20 days after receipt of this notification the teacher may make a 221.21 written request for a hearing before the board or an arbitrator 221.22 and it shall be granted upon reasonable notice to the teacher of 221.23 the date set for hearing, before final action is taken. If no 221.24 hearing is requested within such period, it shall be deemed 221.25 acquiescence by the teacher to the board's action. Such 221.26 termination shall take effect at the close of the school year in 221.27 which the contract is terminated in the manner aforesaid. Such 221.28 contract may be terminated at any time by mutual consent of the 221.29 board and the teacher and this section does not affect the 221.30 powers of a board to suspend, discharge, or demote a teacher 221.31 under and pursuant to other provisions of law. 221.32 Sec. 15. Minnesota Statutes 1998, section 122A.40, 221.33 subdivision 16, is amended to read: 221.34 Subd. 16. [DECISION.] After the hearing, the board must 221.35 issue a written decision and order. If the board orders 221.36 termination of a continuing contract or discharge of a teacher, 222.1 its decision must include findings of fact based upon competent 222.2 evidence in the record and must be served on the teacher, 222.3 accompanied by an order of termination or discharge, prior to 222.4 April 1 in the case of a contract termination for grounds 222.5 specified in subdivision 9, prior toJune 1August 1 for grounds 222.6 specified in subdivision 10 or 11, or within ten days after 222.7 conclusion of the hearing in the case of a discharge. If the 222.8 decision of the board or of a reviewing court is favorable to 222.9 the teacher, the proceedings must be dismissed and the decision 222.10 entered in the board minutes, and all references to such 222.11 proceedings must be excluded from the teacher's record file. 222.12 Sec. 16. Minnesota Statutes 1998, section 122A.41, 222.13 subdivision 4, is amended to read: 222.14 Subd. 4. [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 222.15 DISCHARGE OR DEMOTION.] After the completion of such 222.16 probationary period, without discharge, such teachers as are 222.17 thereupon reemployed shall continue in service and hold their 222.18 respective position during good behavior and efficient and 222.19 competent service and must not be discharged or demoted except 222.20 for cause after a hearing. 222.21 A probationary teacher is deemed to have been reemployed 222.22 for the ensuing school year, unless the school board in charge 222.23 of such school gave such teacher notice in writing beforeJune 1222.24 August 1 of the termination of such employment.In event of222.25such notice the employment terminates at the close of the school222.26sessions of the current school year.222.27 Sec. 17. Minnesota Statutes 1998, section 122A.60, 222.28 subdivision 1, is amended to read: 222.29 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 222.30 board must use the revenue authorized in section 122A.61 for 222.31 in-service education for programs under section 120B.22, 222.32 subdivision 2, or for staff development plans under this 222.33 section. The board must establishaan advisory staff 222.34 development committee to develop the plan, assist 222.35 sitedecision-makingprofessional development teams in 222.36 developing a site plan consistent with the goals of the plan, 223.1 and evaluate staff development efforts at the site level. A 223.2 majority of the advisory committee and the site professional 223.3 development team must be teachers representing various grade 223.4 levels, subject areas, and special education. The advisory 223.5 committee must also include nonteaching staff, parents, and 223.6 administrators. Districts must report staff development results 223.7 and expenditures to the commissioner in the form and manner 223.8 determined by the commissioner. The expenditure report must 223.9 include expenditures by the board for district level activities 223.10 and expenditures made by the staff. The report must provide a 223.11 breakdown of expenditures for (1) curriculum development and 223.12 programs, (2) in-service education, workshops, and conferences, 223.13 and (3) the cost of teachers or substitute teachers for staff 223.14 development purposes. Within each of these categories, the 223.15 report must also indicate whether the expenditures were incurred 223.16 at the district level or the school site level, and whether the 223.17 school site expenditures were made possible by the grants to 223.18 school sites that demonstrate exemplary use of allocated staff 223.19 development revenue. These expenditures are to be reported 223.20 using the UFARS system. The commissioner shall report the staff 223.21 development expenditure data to the education committees of the 223.22 legislature by February 15 each year. 223.23 Sec. 18. Minnesota Statutes 1998, section 122A.60, 223.24 subdivision 3, is amended to read: 223.25 Subd. 3. [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 223.26 development committee must adopt a staff development plan for 223.27 improving student achievementof education outcomes. The plan 223.28 must be consistent with education outcomes that the school board 223.29 determines. The plan must include ongoing staff development 223.30 activities that contribute toward continuous improvement in 223.31 achievement of the following goals: 223.32 (1) improve student achievement of state and local 223.33 education standards in all areas of the curriculum by using best 223.34 practices methods; 223.35 (2) effectively meet the needs of a diverse student 223.36 population, including at-risk children, children with 224.1 disabilities, and gifted children, within the regular classroom 224.2 and other settings; 224.3 (3) provide an inclusive curriculum for a racially, 224.4 ethnically, and culturally diverse student populationthat is224.5consistent with the state education diversity rule and the224.6district's education diversity plan; 224.7 (4) improve staffability to collaborate and consult with224.8one another and to resolve conflictscollaboration and develop 224.9 mentoring and peer review programs for new teachers; 224.10 (5) effectively teach and model violence prevention policy 224.11 and curriculum that address early intervention alternatives, 224.12 issues of harassment, and teach nonviolent alternatives for 224.13 conflict resolution; and 224.14 (6) provide teachers and other members of site-based 224.15 management teams with appropriate management and financial 224.16 management skills. 224.17 Sec. 19. [122A.705] [MINNESOTA NEW TEACHER PROJECT.] 224.18 Subdivision 1. [ESTABLISHMENT; PARTICIPATION.] The 224.19 Minnesota new teacher project is established in the department 224.20 of children, families, and learning to retain new teachers in 224.21 the profession and to provide models for supporting the 224.22 professional development of first-year and second-year 224.23 teachers. In order for a school district to participate in the 224.24 new teacher project, a school board and an exclusive 224.25 representative of the teachers in the district must agree to 224.26 participate in the new teacher project and to the district plan 224.27 under subdivision 2. 224.28 Subd. 2. [DISTRICT PLAN.] A district that participates in 224.29 the new teacher project must submit a plan for the project to 224.30 the commissioner for approval. The new teacher project plan 224.31 must be consistent with the knowledge and skills required in the 224.32 teacher licensure rules adopted by the board of teaching and the 224.33 state graduation requirements, and include curricula of best 224.34 practice activities such as mentoring, intensive summer 224.35 orientation, first-year and second-year staff development 224.36 workshops, peer review, mutual observation between new and 225.1 experienced teachers, consultation with national board certified 225.2 teachers, classroom management techniques, cultural diversity, 225.3 reading strategies, lighter workloads, and first-year 225.4 residency. The plan must include the participation of a teacher 225.5 preparation program approved by the board of teaching. 225.6 Subd. 3. [STATE MATCH.] A district that has an approved 225.7 new teacher project plan must receive $1,000 of state money for 225.8 each new teacher participating in the project. The district 225.9 must contribute $1,500 of district money for each new teacher 225.10 participating in the project. 225.11 Sec. 20. [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 225.12 GRANTS.] 225.13 A cooperative unit, through its governing board, may apply 225.14 for all competitive grants administered by agencies of the state 225.15 and other government or nongovernment sources. 225.16 Sec. 21. Minnesota Statutes 1998, section 123B.02, is 225.17 amended by adding a subdivision to read: 225.18 Subd. 1a. [CONTRACTS FOR SERVICES.] A school board may 225.19 contract with a public or private entity to provide 225.20 instructional and noninstructional services as provided in 225.21 subdivision 14, consistent with the district's collective 225.22 bargaining agreement. 225.23 Sec. 22. Minnesota Statutes 1998, section 123B.02, 225.24 subdivision 3, is amended to read: 225.25 Subd. 3. [LIMITATION ON PARTICIPATION AND FINANCIAL 225.26 SUPPORT.] (a) A district must not be required by any type of 225.27 formal or informal agreement except an agreement to provide 225.28 building space according to paragraph (f), including a joint 225.29 powers agreement, or membership in any cooperative unit defined 225.30 in section 123A.24, subdivision 2, to participate in or provide 225.31 financial support for the purposes of the agreement for a time 225.32 period in excess of four fiscal years, or the time period set 225.33 forth in this subdivision. Any agreement, part of an agreement, 225.34 or other type of requirement to the contrary is void. This 225.35 paragraph applies only to agreements entered into between July 225.36 1, 1993, and June 30, 1999. 226.1 (b) This subdivision shall not affect the continued 226.2 liability of a district for its share of bonded indebtedness or 226.3 other debt incurred as a result of any agreement before July 1, 226.4 1993. The district is liable only until the obligation or debt 226.5 is discharged and only according to the payment schedule in 226.6 effect on July 1, 1993, except that the payment schedule may be 226.7 altered for the purpose of restructuring debt or refunding bonds 226.8 outstanding on July 1, 1993, if the annual payments of the 226.9 district are not increased and if the total obligation of the 226.10 school district for its share of outstanding bonds or other debt 226.11 is not increased. 226.12 (c) To cease participating in or providing financial 226.13 support for any of the services or activities relating to the 226.14 agreement or to terminate participation in the agreement, the 226.15 board must adopt a resolution and notify other parties to the 226.16 agreement of its decision on or before February 1 of any year. 226.17 The cessation or withdrawal shall be effective June 30 of the 226.18 same year except that for a member of an education district 226.19 organized under sections 123A.15 to 123A.19 or an intermediate 226.20 district organized under chapter 136D, cessation or withdrawal 226.21 shall be effective June 30 of the following fiscal year. At the 226.22 option of the board, cessation or withdrawal may be effective 226.23 June 30 of the following fiscal year for a district 226.24 participating in any type of agreement. 226.25 (d) Before issuing bonds or incurring other debt, the 226.26 governing body responsible for implementing the agreement must 226.27 adopt a resolution proposing to issue bonds or incur other debt 226.28 and the proposed financial effect of the bonds or other debt 226.29 upon each participating district. The resolution must be 226.30 adopted within a time sufficient to allow the board to adopt a 226.31 resolution within the time permitted by this paragraph and to 226.32 comply with the statutory deadlines set forth in sections 226.33 122A.40, 122A.41, and 123A.33. The governing body responsible 226.34 for implementing the agreement shall notify each participating 226.35 board of the contents of the resolution. Within 120 days of 226.36 receiving the resolution of the governing body, the school board 227.1 of the participating district shall adopt a resolution stating: 227.2 (1) its concurrence with issuing bonds or incurring other 227.3 debt; 227.4 (2) its intention to cease participating in or providing 227.5 financial support for the service or activity related to the 227.6 bonds or other debt; or 227.7 (3) its intention to terminate participation in the 227.8 agreement. 227.9 A board adopting a resolution according to clause (1) is 227.10 liable for its share of bonded indebtedness or other debt as 227.11 proposed by the governing body implementing the agreement. A 227.12 school board adopting a resolution according to clause (2) is 227.13 not liable for the bonded indebtedness or other debt, as 227.14 proposed by the governing body, related to the services or 227.15 activities in which the district ceases participating or 227.16 providing financial support. A board adopting a resolution 227.17 according to clause (3) is not liable for the bonded 227.18 indebtedness or other debt proposed by the governing body 227.19 implementing the agreement. 227.20 (e) After July 1, 1993, a district is liable according to 227.21 paragraph (d) for its share of bonded indebtedness or other debt 227.22 incurred by the governing body implementing the agreement to the 227.23 extent that the bonds or other debt are directly related to the 227.24 services or activities in which the district participates or for 227.25 which the district provides financial support. The district has 227.26 continued liability only until the obligation or debt is 227.27 discharged and only according to the payment schedule in effect 227.28 at the time the governing body implementing the agreement 227.29 provides notice to the school board, except that the payment 227.30 schedule may be altered for the purpose of refunding the 227.31 outstanding bonds or restructuring other debt if the annual 227.32 payments of the district are not increased and if the total 227.33 obligation of the district for the outstanding bonds or other 227.34 debt is not increased. 227.35 (f) A district that is a member of a cooperative unit as 227.36 defined in section 123A.24, subdivision 2, may obligate itself 228.1 to participate in and provide financial support for an agreement 228.2 with a cooperative unit to provide school building space for a 228.3 term not to exceed two years with an option on the part of the 228.4 district to renew for an additional two years. 228.5 (g) Notwithstanding any limitations imposed under this 228.6 subdivision, a school district may, according to section 228.7 123B.51, subdivision 4, enter into a lease of all or a portion 228.8 of a schoolhouse that is not needed for school purposes, 228.9 including, but not limited to, a lease with a term of more than 228.10 one year. 228.11 Sec. 23. Minnesota Statutes 1998, section 123B.195, is 228.12 amended to read: 228.13 123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 228.14 Notwithstanding section 471.88, subdivision 5, a school 228.15 board member may be newly employed or may continue to be 228.16 employed by a school district as an employee only if there is a 228.17 reasonable expectation at the beginning of the fiscal year or at 228.18 the time the contract is entered into or extended that the 228.19 amount to be earned by that officer under that contract or 228.20 employment relationship will not exceed $5,000 in that fiscal 228.21 year. Notwithstanding section 122A.40 or 122A.41 or other law, 228.22 if the officer does not receiveunanimousmajority approval to 228.23 be initially employed or to continue in employment at a meeting 228.24 at which all board members are present, that employment is 228.25 immediately terminated and that officer has no further rights to 228.26 employment while serving as a school board member in the 228.27 district. 228.28 Sec. 24. Minnesota Statutes 1998, section 123B.77, 228.29 subdivision 4, is amended to read: 228.30 Subd. 4. [BUDGET APPROVAL.] Prior to July 1 of each year, 228.31 the board of each district must approve and adopt its revenue 228.32 and expenditure budgets for the next school year. The budget 228.33 document so adopted must be considered an 228.34 expenditure-authorizing or appropriations document. No funds 228.35 shall be expended by any board or district for any purpose in 228.36 any school year prior to the adoption of the budget document 229.1 which authorizes that expenditure, or prior to an amendment to 229.2 the budget document by the board to authorize the expenditure. 229.3 Expenditures of funds in violation of this subdivision shall be 229.4 considered unlawful expenditures. Prior to the appropriation of 229.5 revenue for the next school year in the initial budget, the 229.6 board shall calculate the general education revenue, basic 229.7 skills revenue, and referendum revenue for that year that it 229.8 estimates will be generated by the pupils in attendance at each 229.9 site, and shall inform each site of that estimate and report 229.10 this information to the department of children, families, and 229.11 learning. 229.12 Sec. 25. Minnesota Statutes 1998, section 123B.83, 229.13 subdivision 4, is amended to read: 229.14 Subd. 4. [SPECIAL OPERATING PLAN.] (1) If the net negative 229.15 unappropriated operating fund balance as defined in section 229.16 126C.01, subdivision 11, calculated in accordance with the 229.17 uniform financial accounting and reporting standards for 229.18 Minnesota school districts, as of June 30 each year, is more 229.19 than 2-1/2 percent of the year's expenditure amount, the 229.20 district must, prior to January 31 of the next fiscal year, 229.21 submit a special operating plan to reduce the district's deficit 229.22 expenditures to the commissioner for approval. The commissioner 229.23 may also require the district to provide evidence that the 229.24 district meets and will continue to meet allof the curriculum229.25 high school graduation requirementsof the state board. 229.26 Notwithstanding any other law to the contrary, a district 229.27 submitting a special operating plan to the commissioner under 229.28 this clause which is disapproved by the commissioner must not 229.29 receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 229.30 124D, 125A, 126C, and 127A until a special operating plan of the 229.31 district is so approved. 229.32 (2) A district must receive aids pending the approval of 229.33 its special operating plan under clause (1). A district which 229.34 complies with its approved operating plan must receive aids as 229.35 long as the district continues to comply with the approved 229.36 operating plan. 230.1 (Effective Date: Section 25 (123B.83, subdivision 4) is 230.2 effective December 31, 1999.) 230.3 Sec. 26. Minnesota Statutes 1998, section 123B.90, 230.4 subdivision 2, is amended to read: 230.5 Subd. 2. [STUDENT TRAINING.] (a) Each district must 230.6 provide public school pupils enrolled in grades kindergarten 230.7 through 10 with age-appropriate school bus safety training. The 230.8 training must be results-oriented and shall consist of both 230.9 classroom instruction and practical training using a school 230.10 bus. Upon completing the training, a student shall be able to 230.11 demonstrate knowledge and understanding of at least the 230.12 following competencies and concepts: 230.13 (1) transportation by school bus is a privilege and not a 230.14 right; 230.15 (2) district policies for student conduct and school bus 230.16 safety; 230.17 (3) appropriate conduct while on the school bus; 230.18 (4) the danger zones surrounding a school bus; 230.19 (5) procedures for safely boarding and leaving a school 230.20 bus; 230.21 (6) procedures for safe street or road crossing;and230.22 (7) school bus evacuation and other emergency procedures; 230.23 and 230.24 (8) appropriate training on the use of lap belts or lap and 230.25 shoulder belts, if the district uses buses equipped with lap 230.26 belts or lap and shoulder belts. 230.27 (b) Each nonpublic school located within the district must 230.28 provide all nonpublic school pupils enrolled in grades 230.29 kindergarten through 10 who are transported by school bus at 230.30 public expense and attend school within the district's 230.31 boundaries with training as required in paragraph (a). The 230.32 school district shall make a bus available for the practical 230.33 training if the district transports the nonpublic students. 230.34 Each nonpublic school shall provide the instruction. 230.35 (c) All students enrolled in grades kindergarten through 3 230.36 who are transported by school bus and are enrolled during the 231.1 first or second week of school must demonstrate achievement of 231.2 the school bus safety training competencies by the end of the 231.3 third week of school. All students enrolled in grades 4 through 231.4 10 who are transported by school bus and are enrolled during the 231.5 first or second week of school must demonstrate achievement of 231.6 the competencies by the end of the sixth week of school. 231.7 Students enrolled in grades kindergarten through 10 who enroll 231.8 in a school after the second week of school and are transported 231.9 by school bus shall undergo school bus safety training and 231.10 demonstrate achievement of the school bus safety competencies 231.11 within four weeks of the first day of attendance. The pupil 231.12 transportation safety director in each district must certify to 231.13 the commissioner annually that all students transported by 231.14 school bus within the district have satisfactorily demonstrated 231.15 knowledge and understanding of the school bus safety 231.16 competencies according to this section or provide an explanation 231.17 for a student's failure to demonstrate the competencies. The 231.18 principal or other chief administrator of each nonpublic school 231.19 must certify annually to the public transportation safety 231.20 director of the district in which the school is located that all 231.21 of the school's students transported by school bus at public 231.22 expense have received training. A district may deny 231.23 transportation to a student who fails to demonstrate the 231.24 competencies, unless the student is unable to achieve the 231.25 competencies due to a disability, or to a student who attends a 231.26 nonpublic school that fails to provide training as required by 231.27 this subdivision. 231.28 (d) A district and a nonpublic school with students 231.29 transported by school bus at public expense must, to the extent 231.30 possible, provide kindergarten pupils with bus safety training 231.31 before the first day of school. 231.32 (e) A district and a nonpublic school with students 231.33 transported by school bus at public expense must also provide 231.34 student safety education for bicycling and pedestrian safety, 231.35 for students enrolled in grades kindergarten through 5. 231.36 (f) A district and a nonpublic school with students 232.1 transported by school bus at public expense must make reasonable 232.2 accommodations for the school bus, bicycle, and pedestrian 232.3 safety training of pupils known to speak English as a second 232.4 language and pupils with disabilities. 232.5 Sec. 27. Minnesota Statutes 1998, section 123B.90, 232.6 subdivision 3, is amended to read: 232.7 Subd. 3. [MODEL TRAINING PROGRAM.] The commissioner shall 232.8 develop a comprehensive model school bus safety training program 232.9 for pupils who ride the bus that includes bus safety curriculum 232.10 for both classroom and practical instruction, methods for 232.11 assessing attainment of school bus safety competencies, and 232.12 age-appropriate instructional materials. The model training 232.13 program for students riding buses with lap belts or lap and 232.14 shoulder belts must include information on the appropriate use 232.15 of lap belts or lap and shoulder belts. The program must be 232.16 adaptable for use by students with disabilities. 232.17 Sec. 28. Minnesota Statutes 1998, section 123B.91, 232.18 subdivision 1, is amended to read: 232.19 Subdivision 1. [COMPREHENSIVE POLICY.] Each district must 232.20 develop and implement a comprehensive, written policy governing 232.21 pupil transportation safety, including transportation of 232.22 nonpublic school students, when applicable. The policy shall, 232.23 at minimum, contain: 232.24 (1) provisions for appropriate student bus safety training 232.25 under section 123B.90; 232.26 (2) rules governing student conduct on school buses and in 232.27 school bus loading and unloading areas; 232.28 (3) a statement of parent or guardian responsibilities 232.29 relating to school bus safety; 232.30 (4) provisions for notifying students and parents or 232.31 guardians of their responsibilities and the rules, including the 232.32 district's seat belt policy, if applicable; 232.33 (5) an intradistrict system for reporting school bus 232.34 accidents or misconduct and a system for dealing with local law 232.35 enforcement officials in cases of criminal conduct on a school 232.36 bus; 233.1 (6) a discipline policy to address violations of school bus 233.2 safety rules, including procedures for revoking a student's bus 233.3 riding privileges in cases of serious or repeated misconduct; 233.4 (7) a system for integrating school bus misconduct records 233.5 with other discipline records; 233.6 (8) a statement of bus driver duties; 233.7 (9) planned expenditures for safety activities under 233.8 section 123B.89 and, where applicable, provisions governing bus 233.9 monitor qualifications, training, and duties; 233.10 (10) rules governing the use and maintenance of type III 233.11 vehicles, drivers of type III vehicles, qualifications to drive 233.12 a type III vehicle, qualifications for a type III vehicle and 233.13 the circumstances under which a student may be transported in a 233.14 type III vehicle; 233.15 (11) operating rules and procedures; 233.16 (12) provisions for annual bus driver in-service training 233.17 and evaluation; 233.18 (13) emergency procedures; 233.19 (14) a system for maintaining and inspecting equipment; 233.20 (15) requirements of the school district, if any, that 233.21 exceed state law minimum requirements for school bus operations; 233.22 and 233.23 (16) requirements for basic first aid training, which must 233.24 include the Heimlich maneuver and procedures for dealing with 233.25 obstructed airways, shock, bleeding, and seizures. 233.26 Districts are encouraged to use the model policy developed 233.27 by the Minnesota school boards association, the department of 233.28 public safety, and the department of children, families, and 233.29 learning, as well as the current edition of the "National 233.30 Standards for School Buses and Operations" published by the 233.31 National Safety Council, in developing safety policies. Each 233.32 district shall review its policy annually and make appropriate 233.33 amendments, which must be submitted to the school bus safety 233.34 advisory committee within one month of approval by the school 233.35 board. 233.36 Sec. 29. Minnesota Statutes 1998, section 124D.03, is 234.1 amended by adding a subdivision to read: 234.2 Subd. 12. [TERMINATION OF ENROLLMENT.] A district may 234.3 terminate the enrollment of a nonresident student enrolled under 234.4 this section or section 124D.07 or 124D.08 at the end of a 234.5 school year if the student meets the definition of a habitual 234.6 truant under section 260.015, subdivision 19, the student has 234.7 been provided appropriate services under chapter 260A, and the 234.8 student's case has been referred to juvenile court. A district 234.9 may also terminate the enrollment of a nonresident student over 234.10 the age of 16 enrolled under this section if the student is 234.11 absent without lawful excuse for one or more periods on 15 234.12 school days and has not lawfully withdrawn from school under 234.13 section 120A.22, subdivision 8. 234.14 Sec. 30. Minnesota Statutes 1998, section 124D.86, 234.15 subdivision 1, is amended to read: 234.16 Subdivision 1. [USE OF THE REVENUE.] Integration revenue 234.17 under this section must be used for programs established under a 234.18 desegregation planmandated by the state boardor under court 234.19 order, to increase learning opportunities and reduce the 234.20 learning gap between learners living in high concentrations of 234.21 poverty and their peers. 234.22 (Effective Date: Section 30 (124D.86, subdivision 1) is 234.23 effective December 31, 1999.) 234.24 Sec. 31. Minnesota Statutes 1998, section 124D.86, 234.25 subdivision 3, is amended to read: 234.26 Subd. 3. [INTEGRATION REVENUE.] For fiscal year 1999 and 234.27 later fiscal years, integration revenue equals the following 234.28 amounts: 234.29 (1) for independent school district No. 709, Duluth, $193 234.30 times the resident pupil units for the school year; 234.31 (2) for independent school district No. 625, St. Paul, $427 234.32 times the resident pupil units for the school year; 234.33 (3) for special school district No. 1, Minneapolis, $523 234.34 times the resident pupil units for the school year; and 234.35 (4) for a district not listed in clause (1), (2), or (3) 234.36 that is required to implement a plan according to the 235.1 requirements of Minnesota Rules,parts 3535.0200 to 3535.2200,235.2 the lesser of the actual cost of implementing the plan during 235.3 the fiscal year or $93 times the resident pupil units for the 235.4 school year. 235.5 (Effective Date: Section 31 (124D.86, subdivision 3) is 235.6 effective December 31, 1999.) 235.7 Sec. 32. Minnesota Statutes 1998, section 124D.89, 235.8 subdivision 1, is amended to read: 235.9 Subdivision 1. [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 235.10 cultural exchange grant program is established to develop and 235.11 create opportunities for children and staff of different ethnic, 235.12 racial, and other cultural backgrounds to experience educational 235.13 and social exchange.Student and staff exchanges under this235.14section may only take place between a district with a235.15desegregation plan approved by the state board of education and235.16a district without a desegregation plan.Participating school 235.17 districts shall offersummerprograms for credit with the goals 235.18 set forth in paragraphs (b) to (e). 235.19 (b) The program must develop curriculum reflective of 235.20 particular ethnic, racial, and other cultural aspects of various 235.21 demographic groups in the state. 235.22 (c) The program must develop immersion programs that are 235.23 coordinated with the programs offered in paragraph (b). 235.24 (d) The program must create opportunities for students from 235.25 across the state to enroll insummerprograms in districts other 235.26 than the one of residence, or in other schools within their 235.27 district of residence. 235.28 (e) The program must create opportunities for staff 235.29 exchanges on a cultural basis. 235.30 (Effective Date: Section 32 (124D.89, subdivision 1) is 235.31 effective December 31, 1999.) 235.32 Sec. 33. Minnesota Statutes 1998, section 124D.94, 235.33 subdivision 3, is amended to read: 235.34 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 235.35 the foundation shall consist of the commissioner of children, 235.36 families, and learning, a member of the state board of education236.1selected by the state board who shall serve as chairand 20 236.2 members to be appointed by the governor. Of the 20 members 236.3 appointed by the governor, eight shall represent a variety of 236.4 education groups and 12 shall represent a variety of business 236.5 groups. The members of the board of directors shall select one 236.6 member to serve as chair. The commissioner of children, 236.7 families, and learning shall serve as secretary for the board of 236.8 directors and provide administrative support to the foundation. 236.9 An executive committee of the foundation board composed of the 236.10 board officers and chairs of board committees, may only advise 236.11 and make recommendations to the foundation board. 236.12 (Effective Date: Section 33 (124D.94, subdivision 3) is 236.13 effective December 31, 1999.) 236.14 Sec. 34. Minnesota Statutes 1998, section 125A.09, 236.15 subdivision 11, is amended to read: 236.16 Subd. 11. [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 236.17 commissioner must select an individual who has the 236.18 qualifications enumerated in this subdivision to serve as the 236.19 hearing review officer: 236.20 (1) the individual must be knowledgeable and impartial; 236.21 (2) the individual must not have a personal interest in or 236.22 specific involvement with the student who is a party to the 236.23 hearing; 236.24 (3) the individual must not have been employed as an 236.25 administrator by the district that is a party to the hearing; 236.26 (4) the individual must not have been involved in the 236.27 selection of the administrators of the district that is a party 236.28 to the hearing; 236.29 (5) the individual must not have a personal, economic, or 236.30 professional interest in the outcome of the hearing other than 236.31 the proper administration of the federal and state laws, rules, 236.32 and policies; 236.33 (6) the individual must not have substantial involvement in 236.34 the development of a state or local policy or procedures that 236.35 are challenged in the appeal; 236.36 (7) the individual is not a current employee or board 237.1 member of a Minnesota public school district, education 237.2 district, intermediate unit or regional education agency,or the 237.3 department, and the state board of education; and 237.4 (8) the individual is not a current employee or board 237.5 member of a disability advocacy organization or group. 237.6 (Effective Date: Section 34 (125A.09, subdivision 11) is 237.7 effective December 31, 1999.) 237.8 Sec. 35. Minnesota Statutes 1998, section 127A.05, 237.9 subdivision 1, is amended to read: 237.10 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 237.11 shall be under the administrative control of the commissioner of 237.12 children, families, and learning which office is 237.13 established.The commissioner shall be the secretary of the237.14state board.The governor shall appoint the commissioner under 237.15 the provisions of section 15.06. 237.16 The commissioner shall be a person who possesses 237.17 educational attainment and breadth of experience in the 237.18 administration of public education and of the finances 237.19 pertaining thereto commensurate with the spirit and intent of 237.20 this code. Notwithstanding any other law to the contrary, the 237.21 commissioner may appoint two deputy commissioners who shall 237.22 serve in the unclassified service. The commissioner shall also 237.23 appoint other employees as may be necessary for the organization 237.24 of the department. The commissioner shall perform such duties 237.25 as the law andtherulesof the state boardmay provide and be 237.26 held responsible for the efficient administration and discipline 237.27 of the department. The commissionershall make recommendations237.28to the board and beis charged with the execution of powers and 237.29 dutieswhich the state board may prescribe, from time to time,237.30 to promote public education in the state,and to safeguard the 237.31 finances pertaining thereto, and to enable the state board to237.32carry out its duties. 237.33 (Effective Date: Section 35 (127A.05, subdivision 1) is 237.34 effective December 31, 1999.) 237.35 Sec. 36. [127A.25] [SURVEY OF DISTRICTS.] 237.36 The commissioner of children, families, and learning shall 238.1 survey the state's school districts and report to the education 238.2 committees of the legislature by January 15 of each odd-numbered 238.3 year on the status of the teacher shortage and the substitute 238.4 teacher shortage, including shortages in subject areas and 238.5 regions of the state. The report must also include how 238.6 districts are making progress in hiring teachers and substitutes 238.7 in the areas of shortage. 238.8 Sec. 37. Minnesota Statutes 1998, section 127A.41, 238.9 subdivision 5, is amended to read: 238.10 Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 238.11 DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.]A reduction of aid238.12under this section may be appealed to the state board of238.13education and its decision shall be final.Public schools shall 238.14 at all times be open to the inspection of the commissioner. The 238.15 accounts and records of any district must be open to inspection 238.16 by the state auditor,the state board,or the commissioner for 238.17 the purpose of audits conducted under this section. Each 238.18 district shall keep for a minimum of three years at least the 238.19 following: (1) identification of the annual session days held, 238.20 together with a record of the length of each session day, (2) a 238.21 record of each pupil's daily attendance, with entrance and 238.22 withdrawal dates, and (3) identification of the pupils 238.23 transported who are reported for transportation aid. 238.24 (Effective Date: Section 37 (127A.41, subdivision 5) is 238.25 effective December 31, 1999.) 238.26 Sec. 38. Minnesota Statutes 1998, section 127A.42, 238.27 subdivision 5, is amended to read: 238.28 Subd. 5. [DISPUTE VIOLATIONS; HEARING.] The board to which 238.29 such notice is given may, by a majority vote of the whole board, 238.30 decide to dispute that the specified violation exists or that 238.31 the time allowed is reasonable or the correction specified is 238.32 correct, or that the commissioner may reduce aids. The board 238.33 must give the commissioner written notice of the decision. If 238.34 the commissioner, after further investigation as the 238.35 commissioner deems necessary, adheres to the previous 238.36 notice,the board shall be entitled to a hearing by the state239.1boardthe commissioner shall notify the school board of its 239.2 decision.The state board must set a hearing time and place and239.3the board of the district must be given notice by mail. The239.4state board must adopt rules governing the proceedings for239.5hearings. The hearings must be designed to give a full and fair239.6hearing and permit interested parties an opportunity to produce239.7evidence relating to the issues involved. The rules may provide239.8that any question of fact to be determined at the hearing may be239.9referred to one or more members of the board or to an employee239.10of the state board acting as a referee to hear evidence and239.11report the testimony taken to the state board. The state board,239.12or a person designated to receive evidence at a hearing, shall239.13have the same right to issue subpoenas and administer oaths and239.14parties to the hearing shall have the same right to subpoenas239.15issued as are allowed for proceedings before the industrial239.16commission. A stenographic record must be made of all testimony239.17given and other proceedings during the hearing. If practicable,239.18rules governing admission of evidence in courts shall apply to239.19the hearing. The decision of the state board must be in writing239.20and the controlling facts upon which the decision is made must239.21be stated in sufficient detail to apprise the parties and the239.22reviewing court of the basis and reason for the decision. The239.23decision must be confined to whether any of the specified239.24violations existed at the date of the commissioner's first239.25notice, whether the violations were corrected within the time239.26permitted, and whether the violations require reduction of the239.27state aids under this section.239.28 (Effective Date: Section 38 (127A.42, subdivision 5) is 239.29 effective December 31, 1999.) 239.30 Sec. 39. Minnesota Statutes 1998, section 127A.42, 239.31 subdivision 6, is amended to read: 239.32 Subd. 6. [VIOLATION; AID REDUCTION.] The commissioner 239.33 shall not reduce state aids payable to the district if the 239.34 violation specified is corrected within the time permitted, or 239.35 if the commissioner on being notified of the district board's 239.36 decision to dispute decides the violation does not exist, or if240.1the state board decides after hearing no violation specified in240.2the commissioner's notice existed at the time of the notice, or240.3that the violations were corrected within the time permitted. 240.4 Otherwise state aids payable to the district for the year in 240.5 which the violation occurred shall be reduced as follows: The 240.6 total amount of state aids to which the district may be entitled 240.7 shall be reduced in the proportion that the period during which 240.8 a specified violation continued, computed from the last day of 240.9 the time permitted for correction, bears to the total number of 240.10 days school is held in the district during the year in which a 240.11 violation exists, multiplied by 60 percent of the basic revenue, 240.12 as defined in section 126C.10, subdivision 2, of the district 240.13 for that year. 240.14 (Effective Date: Section 39 (127A.42, subdivision 6) is 240.15 effective December 31, 1999.) 240.16 Sec. 40. Minnesota Statutes 1998, section 127A.60, 240.17 subdivision 1, is amended to read: 240.18 Subdivision 1. [DEPARTMENT.] A state department of 240.19 children, families, and learning is hereby createdwhich shall240.20be maintained under the direction of a state board of education240.21composed of nine representative citizens of the state, at least240.22one of whom shall reside in each congressional district in the240.23state. 240.24Of the nine representative citizens of the state who are240.25appointed to the state board of education not less than three240.26members thereof shall previously thereto have served as an240.27elected member of a board of education of a school district240.28however organized.240.29The members of the state board shall be appointed by the240.30governor, with the advice and consent of the senate. One member240.31shall be chosen annually as president, but no member shall serve240.32as president more than three consecutive years. The state board240.33shall hold its annual meeting in August. It shall hold meetings240.34on dates and at places as it designates. No member shall hold240.35any public office, or represent or be employed by any board of240.36education or school district, public or private, and shall not241.1voluntarily have any personal financial interest in any contract241.2with a board of education or school district, or be engaged in241.3any capacity where a conflict of interest may arise.241.4 (Effective Date: Section 40 (127A.60, subdivision 1) is 241.5 effective December 31, 1999.) 241.6 Sec. 41. Minnesota Statutes 1998, section 127A.66, 241.7 subdivision 2, is amended to read: 241.8 Subd. 2. [ADMINISTRATIVE RULES.] Thestate board241.9 commissioner may adopt new rules and amend them or amend anyof241.10itsexisting rules only under specific authority and consistent 241.11 with the requirements of chapter 14. Thestate board241.12 commissioner may repeal any ofitsthe commissioner's existing 241.13 rules. Notwithstanding the provisions of section 14.05, 241.14 subdivision 4, thestate boardcommissioner may grant a variance 241.15 toitsthe commissioner's rules upon application by a school 241.16 district for purposes of implementing experimental programs in 241.17 learning or school management. This subdivision shall not 241.18 prohibit thestate boardcommissioner from making technical 241.19 changes or corrections toitsthe commissioner's rules. 241.20 (Effective Date: Section 41 (127A.66, subdivision 2) is 241.21 effective December 31, 1999.) 241.22 Sec. 42. Minnesota Statutes 1998, section 128C.01, 241.23 subdivision 4, is amended to read: 241.24 Subd. 4. [BOARD.] (a) The league must have a 20-member 241.25 governing board. 241.26 (1) The governor must appoint four members according to 241.27 section 15.0597. Each of the four appointees must be a parent. 241.28 At least one of them must be an American Indian, an Asian, a 241.29 Black, or a Hispanic. 241.30 (2) The Minnesota association of secondary school 241.31 principals must appoint two of its members. 241.32 (3) The remaining 14 members must be selected according to 241.33 league bylaws. 241.34 (b) The terms, compensation, removal of members, and the 241.35 filling of membership vacancies are governed by section 15.0575, 241.36 except that the four-year terms begin on August 1 and end on 242.1 July 31. As provided by section 15.0575, members who are 242.2 full-time state employees or full-time employees of school 242.3 districts or other political subdivisions of the state may not 242.4 receive any per diem payment for service on the board. 242.5 Sec. 43. Minnesota Statutes 1998, section 128C.02, is 242.6 amended by adding a subdivision to read: 242.7 Subd. 9. [PURCHASING.] (a) In purchasing goods and 242.8 services, the league must follow all laws that apply to school 242.9 districts under sections 123B.52 and 471.345. 242.10 (b) The league may not enforce any national rule that 242.11 directs or controls school purchasing of athletic supplies and 242.12 equipment. 242.13 Sec. 44. [128C.075] [COOPERATIVE SPONSORSHIPS.] 242.14 An interscholastic conference or other entity must not 242.15 adopt a policy that limits a school board's power to enter into 242.16 a cooperative sponsorship agreement. 242.17 Sec. 45. Minnesota Statutes 1998, section 128C.12, 242.18 subdivision 1, is amended to read: 242.19 Subdivision 1. [DUES AND EVENTS REVENUE.] The state 242.20 auditor annually must examine the accounts of, and audit all 242.21 money paid to, the state high school league by its members. The 242.22 audit must include financial and compliance issues. The state 242.23 auditor must also audit all money derived from any event 242.24 sponsored by the league. League audits must include audits of 242.25 administrative regions of the league. The league and its 242.26 administrative regions may not contract with private auditors. 242.27The scope of the state auditor's examinations of the league must242.28be agreed upon by the board and the state auditor, provided that242.29all requirements of this section must be met.242.30 Sec. 46. Minnesota Statutes 1998, section 128C.20, 242.31 subdivision 1, is amended to read: 242.32 Subdivision 1. [ANNUALLY.] Each year the commissioner of 242.33 children, families, and learning shall obtain and review the 242.34 following information about the league: 242.35 (1) an accurate and concise summary of the annual financial 242.36 and compliance audit prepared by the state auditor that includes 243.1 information about the compensation of and the expenditures by 243.2 the executive director of the league and league staff; 243.3 (2) a list of all complaints filed with the league and all 243.4 lawsuits filed against the league and the disposition of those 243.5 complaints and lawsuits; 243.6 (3) an explanation of the executive director's performance 243.7 review; 243.8 (4) information about the extent to which the league has 243.9 implemented its affirmative action policy, its comparable worth 243.10 plan, and its sexual harassment and violence policy and rules; 243.11 and 243.12 (5) an evaluation of any proposed changes in league policy. 243.13 The commissioner may examine any league activities or 243.14 league-related issues when the commissioner believes this review 243.15 is warranted. 243.16 Sec. 47. Minnesota Statutes 1998, section 128C.20, 243.17 subdivision 2, is amended to read: 243.18 Subd. 2. [RECOMMEND LAWSRECOMMENDATIONS.] The board of 243.19 directors shall submit any proposed changes in league bylaws or 243.20 policies to the commissioner for review and comment at least 30 243.21 days before the effective date of these bylaws or policies. The 243.22 commissioner shall review and report to the board of directors, 243.23 the representative assembly, and the chairs of the house and 243.24 senate government operations and education committees on the 243.25 proposed changes within seven days of completing the review and 243.26 comment. The commissioner may recommend to the legislature 243.27 whether any legislation is made necessary by league activities. 243.28 Sec. 48. Minnesota Statutes 1998, section 136D.281, 243.29 subdivision 4, is amended to read: 243.30 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 243.31 boardshall notmay sell and issue bonds for acquisition or 243.32 betterment purposes if: (1) each member school district board 243.33 has adopted a resolution authorizing the project; (2) the 243.34 intermediate board has prepared and published in a newspaper of 243.35 general circulation in the district a notice of the public 243.36 meeting on the intermediate district's intent to sell bonds; and 244.1 (3) the intermediate board has adopted a resolution authorizing 244.2 the bonds. The resolution becomes final unless within 30 days 244.3 after the meeting where the resolution was adopted a petition 244.4 requesting an election signed by a number of qualified voters in 244.5 excess of five percent of the registered voters of the 244.6 intermediate school district on the day the petition is filed 244.7 with the board. If the petition is filed, then the board 244.8 resolution authorizing the sale and issuance of bonds has no 244.9 effect until the question of their issuance has been submitted 244.10 to the voters of the intermediate school district at a special 244.11 election held in and for the intermediate district. The date of 244.12 the election, the question to be submitted, and all other 244.13 necessary conduct of the election shall be fixed by the 244.14 intermediate school board. The election shall be conducted and 244.15 canvassed under the direction of the intermediate school board 244.16 in accordance with chapter 205A, insofar as applicable. 244.17 If a majority of the total number of votes cast on the 244.18 question within the intermediate school district is in favor of 244.19 the question, the intermediate school board may proceed with the 244.20 sale and issuance of the bonds. 244.21 The bonds shall be general obligations of the intermediate 244.22 school district; however, each member school district must each 244.23 year certify its proportionate share of the debt service levy on 244.24 the bonds, with the allocation of its share of that levy 244.25 determined in accordance with the resolution authorizing the 244.26 project previously adopted by each member school board. For 244.27 purposes of section 123B.53, the debt service levies certified 244.28 for this purpose by an individual member school district shall 244.29 be considered debt service levies of that school district. By 244.30 July 1 and December 1 of each year, the school board of each 244.31 member school district shall transfer to the intermediate school 244.32 district an amount equal to 50 percent of the debt service levy 244.33 certified by that member school district in the previous fiscal 244.34 year to pay its proportionate share. 244.35 Sec. 49. Minnesota Statutes 1998, section 136D.741, 244.36 subdivision 4, is amended to read: 245.1 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 245.2 boardshall notmay sell and issue bonds for acquisition or 245.3 betterment purposes if: (1) each member school district board 245.4 has adopted a resolution authorizing the project; (2) the 245.5 intermediate board has prepared and published in a newspaper of 245.6 general circulation in the district a notice of the public 245.7 meeting on the intermediate district's intent to sell bonds; and 245.8 (3) the intermediate board has adopted a resolution authorizing 245.9 the bonds. The resolution becomes final unless within 30 days 245.10 after the meeting where the resolution was adopted a petition 245.11 requesting an election signed by a number of qualified voters in 245.12 excess of five percent of the registered voters of the 245.13 intermediate school district on the day the petition is filed 245.14 with the board. If the petition is filed, then the board 245.15 resolution authorizing the sale and issuance of bonds has no 245.16 effect until the question of their issuance has been submitted 245.17 to the voters of the intermediate school district at a special 245.18 election held in and for such intermediate district. The date 245.19 of such election, the question to be submitted, and all other 245.20 necessary conduct of such election shall be fixed by the 245.21 intermediate school board and said election shall be conducted 245.22 and canvassed under the direction of the intermediate school 245.23 board in accordance with chapter 205A, insofar as the same may 245.24 be deemed applicable. 245.25 If a majority of the total number of votes cast on the 245.26 question within the intermediate school district is in favor of 245.27 the question, the intermediate school board may thereupon 245.28 proceed with the sale and the issuance of said bonds. 245.29 The bonds shall be general obligations of the intermediate 245.30 school district; however, each member school district must each 245.31 year certify its proportionate share of the debt service levy on 245.32 the bonds, with the allocation of its share of that levy 245.33 determined in accordance with the resolution authorizing the 245.34 project previously adopted by each member school board. For 245.35 purposes of section 123B.53, the debt service levies certified 245.36 for this purpose by an individual member school district shall 246.1 be considered debt service levies of that school district. By 246.2 July 1 and December 1 of each year, the school board of each 246.3 member school district shall transfer to the intermediate school 246.4 district an amount equal to 50 percent of the debt service levy 246.5 certified by that member school district in the previous fiscal 246.6 year to pay its proportionate share. 246.7 Sec. 50. Minnesota Statutes 1998, section 136D.88, 246.8 subdivision 4, is amended to read: 246.9 Subd. 4. [REVERSE REFERENDUM.] The intermediate school 246.10 boardshall notmay sell and issue bonds for acquisition or 246.11 betterment purposes if: (1) each member school district board 246.12 has adopted a resolution authorizing the project; (2) the 246.13 intermediate board has prepared and published in a newspaper of 246.14 general circulation in the district a notice of the public 246.15 meeting on the intermediate district's intent to sell bonds; and 246.16 (3) the intermediate board has adopted a resolution authorizing 246.17 the bonds. The resolution becomes final unless within 30 days 246.18 after the meeting where the resolution was adopted a petition 246.19 requesting an election signed by a number of qualified voters in 246.20 excess of five percent of the registered voters of the 246.21 intermediate school district on the day the petition is filed 246.22 with the board. If the petition is filed, then the board 246.23 resolution authorizing the sale and issuance of bonds has no 246.24 effect until the question of their issuance has been submitted 246.25 to the voters of the intermediate school district at a special 246.26 election held in and for the intermediate district. The date of 246.27 the election, the question to be submitted, and all other 246.28 necessary conduct of the election shall be fixed by the 246.29 intermediate school board. The election shall be conducted and 246.30 canvassed under the direction of the intermediate school board 246.31 in accordance with chapter 205A, insofar as applicable. 246.32 If a majority of the total number of votes cast on the 246.33 question within the intermediate school district is in favor of 246.34 the question, the intermediate school board may thereupon 246.35 proceed with the sale and issuance of the bonds. 246.36 The bonds shall be general obligations of the intermediate 247.1 school district; however, each member school district must each 247.2 year certify its proportionate share of the debt service levy on 247.3 the bonds, with the allocation of its share of that levy 247.4 determined in accordance with the resolution authorizing the 247.5 project previously adopted by each member school board. For 247.6 purposes of section 123B.53, the debt service levies certified 247.7 for this purpose by an individual member school district shall 247.8 be considered debt service levies of that school district. By 247.9 July 1 and December 1 of each year, the school board of each 247.10 member school district shall transfer to the intermediate school 247.11 district an amount equal to 50 percent of the debt service levy 247.12 certified by that member school district in the previous fiscal 247.13 year to pay its proportionate share. 247.14 Sec. 51. Minnesota Statutes 1998, section 169.01, 247.15 subdivision 6, is amended to read: 247.16 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 247.17 used to transport pupils to or from a school defined in section 247.18 120A.22, or to or from school-related activities, by the school 247.19 or a school district, or by someone under an agreement with the 247.20 school or a school district. A school bus does not include a 247.21 motor vehicle transporting children to or from school for which 247.22 parents or guardians receive direct compensation from a school 247.23 district, a motor coach operating under charter carrier 247.24 authority, a transit bus providing services as defined in 247.25 section 174.22, subdivision 7, or a vehicle otherwise qualifying 247.26 as a type III vehicle under paragraph (5), when the vehicle is 247.27 properly registered and insured and being driven by an employee 247.28 or agent of a school district for nonscheduled transportation. 247.29 A school bus may be type A, type B, type C, or type D, or type 247.30 III as follows: 247.31 (1) A "type A school bus" is a conversion or body 247.32 constructed upon a van-type or cutaway front section vehicle 247.33 with a left-side driver's door, designed for carrying more than 247.34 ten persons. This definition includes two classifications: 247.35 type A-I, with a gross vehicle weight rating (GVWR) over 10,000 247.36 pounds; and type A-II, with a GVWR of 10,000 pounds or less. 248.1 (2) A "type B school bus" is a conversion or body 248.2 constructed and installed upon a van or front-section vehicle 248.3 chassis, or stripped chassis, with a gross vehicle weight rating 248.4 of more than 10,000 pounds, designed for carrying more than ten 248.5 persons. Part of the engine is beneath or behind the windshield 248.6 and beside the driver's seat. The entrance door is behind the 248.7 front wheels. 248.8 (3) A "type C school bus" is a body installed upon a flat 248.9 back cowl chassis with a gross vehicle weight rating of more 248.10 than 10,000 pounds, designed for carrying more than ten 248.11 persons. All of the engine is in front of the windshield and 248.12 the entrance door is behind the front wheels. A type C school 248.13 bus has a maximum length of 45 feet. 248.14 (4) A "type D school bus" is a body installed upon a 248.15 chassis, with the engine mounted in the front, midship or rear, 248.16 with a gross vehicle weight rating of more than 10,000 pounds, 248.17 designed for carrying more than ten persons. The engine may be 248.18 behind the windshield and beside the driver's seat; it may be at 248.19 the rear of the bus, behind the rear wheels, or midship between 248.20 the front and rear axles. The entrance door is ahead of the 248.21 front wheels. A type D school bus has a maximum length of 45 248.22 feet. 248.23 (5) Type III school buses and type III Head Start buses are 248.24 restricted to passenger cars, station wagons, vans, and busesin248.25service after January 1, 1999,havingan originala maximum 248.26 manufacturer's rated seating capacity of ten or fewer people, 248.27 including the driver, and a gross vehicle weight rating of 248.28 10,000 pounds or less. In this subdivision, "gross vehicle 248.29 weight rating" means the value specified by the manufacturer as 248.30 the loaded weight of a single vehicle. A "type III school bus" 248.31 and "type III Head Start bus" must not be outwardly equipped and 248.32 identified as a type A, B, C, or D school bus or type A, B, C, 248.33 or D Head Start bus. A van or bus converted to a seating 248.34 capacity of ten or fewer and placed in service on or after 248.35 August 1, 1999, must have been originally manufactured to comply 248.36 with the passenger safety standards. 249.1 Sec. 52. Minnesota Statutes 1998, section 169.03, 249.2 subdivision 6, is amended to read: 249.3 Subd. 6. [WORKING ON HIGHWAY.] (a) The provisions of this 249.4 chapter shall not apply to persons, motor vehicles, and other 249.5 equipment while actually engaged in work upon the highway, 249.6 except as provided in paragraphs (b) and (c). 249.7 (b) This chapter shall apply to those persons and vehicles 249.8 when traveling to or from such work, except that persons 249.9 operating equipment owned, rented or hired by road authorities 249.10 shall be exempt from the width, height and length provisions of 249.11 sections 169.80 and 169.81 and shall be exempt from the weight 249.12 limitations of this chapter while engaged in snow or ice removal 249.13 and while engaged in flood control operations on behalf of the 249.14 state or a local governmental unit. 249.15 (c) Sections 169.121 to 169.129 and 169.444 apply to 249.16 persons while actually engaged in work upon the highway. 249.17 Sec. 53. Minnesota Statutes 1998, section 171.3215, 249.18 subdivision 2, is amended to read: 249.19 Subd. 2. [CANCELLATION FOR DISQUALIFYING AND OTHER 249.20 OFFENSES.] Within ten days of receiving notice under section 249.21 631.40, subdivision 1a, or otherwise receiving notice for a 249.22 nonresident driver, that a school bus driver has been convicted 249.23 of a disqualifying offense, the commissioner shall permanently 249.24 cancel the school bus driver's endorsement on the offender's 249.25 driver's license and in the case of a nonresident, the driver's 249.26 privilege to operate a school bus in Minnesota. A school bus 249.27 driver whose endorsement or privilege to operate a school bus in 249.28 Minnesota has been permanently canceled may not apply for 249.29 reinstatement. Within ten days of receiving notice under 249.30 section 631.40, subdivision 1a, or otherwise receiving notice 249.31 for a nonresident driver, that a school bus driver has been 249.32 convicted ofa gross misdemeanor, ora violation of section 249.33 169.121, 169.129, or a similar statute or ordinance from another 249.34 state, and within ten days of revoking a school bus driver's 249.35 license under section 169.123, the commissioner shall cancel the 249.36 school bus driver's endorsement on the offender's driver's 250.1 license or the nonresident's privilege to operate a school bus 250.2 in Minnesota for five years. After five years, a school bus 250.3 driver may apply to the commissioner for reinstatement. Even 250.4 after five years, cancellation of a school bus driver's 250.5 endorsement or a nonresident's privilege to operate a school bus 250.6 in Minnesota for a violation under section 169.121, 169.123, 250.7 169.129, or a similar statute or ordinance from another state, 250.8 shall remain in effect until the driver provides proof of 250.9 successful completion of an alcohol or controlled substance 250.10 treatment program. For a first offense, proof of completion is 250.11 required only if treatment was ordered as part of a chemical use 250.12 assessment. Within ten days of receiving notice under section 250.13 631.40, subdivision 1a, or otherwise receiving notice for a 250.14 nonresident driver, that a school bus driver has been convicted 250.15 of a fourth moving violation in the last three years, the 250.16 commissioner shall cancel the school bus driver's endorsement on 250.17 the offender's driver's license or the nonresident's privilege 250.18 to operate a school bus in Minnesota until one year has elapsed 250.19 since the last conviction. A school bus driver who has no new 250.20 convictions after one year may apply for reinstatement. Upon 250.21 canceling the offender's school bus driver's endorsement, the 250.22 commissioner shall immediately notify the licensed offender of 250.23 the cancellation in writing, by depositing in the United States 250.24 post office a notice addressed to the licensed offender at the 250.25 licensed offender's last known address, with postage prepaid 250.26 thereon. 250.27 Sec. 54. Minnesota Statutes 1998, section 171.3215, 250.28 subdivision 4, is amended to read: 250.29 Subd. 4. [WAIVER OF PERMANENT CANCELLATION.] (a) The 250.30 commissioner of public safety or the commissioner's designee, in 250.31 consultation with the division of driver and vehicle services, 250.32 may waive the permanent cancellation requirement of this section 250.33171.3215for a person convicted of a misdemeanor, a gross 250.34 misdemeanor, a nonfelony violation of chapter 152, or a felony 250.35 that is not a violent crime under section 609.1095. 250.36 (b) After notice to the requesting school district and 251.1 contract provider of school bus transportation, the commissioner 251.2 may waive the permanent cancellation requirement after ten years 251.3 have elapsed since the person was convicted of a violation of 251.4 section 609.582, subdivision 2, 3, or 4. 251.5 Sec. 55. Minnesota Statutes 1998, section 181.101, is 251.6 amended to read: 251.7 181.101 [WAGES; HOW OFTEN PAID.] 251.8 Every employer must pay all wages earned by an employee at 251.9 least once every3031 days on a regular pay day designated in 251.10 advance by the employer regardless of whether the employee 251.11 requests payment at longer intervals. Unless paid earlier, the 251.12 wages earned during the first half of the first30-day31-day 251.13 pay period become due on the first regular payday following the 251.14 first day of work. If wages earned are not paid, the 251.15 commissioner of labor and industry or the commissioner's 251.16 representative may demand payment on behalf of an employee. If 251.17 payment is not made within ten days of demand, the commissioner 251.18 may charge and collect the wages earned and a penalty in the 251.19 amount of the employee's average daily earnings at the rate 251.20 agreed upon in the contract of employment, not exceeding 15 days 251.21 in all, for each day beyond the ten-day limit following the 251.22 demand. Money collected by the commissioner must be paid to the 251.23 employee concerned. Thissubdivisionsection does not prevent 251.24 an employee from prosecuting a claim for wages. This section 251.25 does not prevent a school district or other public school entity 251.26 from paying any wages earned by its employees during a school 251.27 year on regular pay days in the manner provided by an applicable 251.28 contract or collective bargaining agreement, or a personnel 251.29 policy adopted by the governing board. For purposes of this 251.30 section, "employee" includes a person who performs agricultural 251.31 labor as defined in section 181.85, subdivision 2. For purposes 251.32 of this section, wages are earned on the day an employee works. 251.33 (Effective Date: Section 55 (181.101) is effective the day 251.34 following final enactment.) 251.35 Sec. 56. Minnesota Statutes 1998, section 209.07, is 251.36 amended by adding a subdivision to read: 252.1 Subd. 4. [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 252.2 REQUIREMENTS.] If an election approving the issuance of bonds by 252.3 a school district is contested, the contestant shall file in the 252.4 district court a surety bond of at least $5,000 or a greater 252.5 amount determined necessary by the court to provide security for 252.6 costs of the contest to the school district, including any 252.7 additional costs that may be incurred by the school district if 252.8 the bond issue is delayed. The court may waive the requirements 252.9 of this subdivision to the extent it finds that there is a 252.10 reasonable likelihood that the contestant will prevail and that 252.11 filing the bond would impose an undue hardship. If the surety 252.12 bond is not filed within the time allowed by the court, the 252.13 contest shall be dismissed with prejudice. 252.14 Sec. 57. Laws 1997, First Special Session chapter 4, 252.15 article 5, section 22, is amended to read: 252.16 Sec. 22. [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 252.17 STANDARDS.] 252.18 Subdivision 1. [ESTABLISHMENT.] A grant program to promote 252.19 professional teaching standards through the national board for 252.20 professional teaching standardsfor fiscal year 1998is 252.21 established to provide eligible teachers with the opportunity to 252.22 receive national board for professional teaching standards 252.23 certification and to reward teachers who have already received 252.24 such certification. 252.25 Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a 252.26 licensed K-12 school teacher employed in a state school. To be 252.27 eligible for a grant, the teacher must have been employed as a 252.28 teacher for a minimum of five school years and demonstrate 252.29 either that the national board for professional teaching 252.30 standards has accepted the teacher as a candidate for board 252.31 certification or that the teacher already has received board 252.32 certification. 252.33 Subd. 3. [APPLICATION PROCESS.] To obtain a grant to 252.34 participate in the national board for professional teaching 252.35 standards certification process or to receive a reward for 252.36 already completing the board certification process, a teacher 253.1 must submit an application to the commissioner of children, 253.2 families, and learning in the form and manner the commissioner 253.3 establishes. The applicant must demonstrate either that the 253.4 national board for professional teaching standards has accepted 253.5 the teacher as a candidate for board certification or that the 253.6 teacher already has received board certification. The 253.7 commissioner shall consult with the state board of teaching when 253.8 reviewing the applications. 253.9 Subd. 4. [GRANT AWARDS; PROCEEDS.](a)The commissioner 253.10 may award matching grants of $1,000 eachtofor eligible 253.11 teachers who provide a matching amount through collaboration 253.12 with either a school district, professional organization, or 253.13 both and are accepted as candidates for national board for 253.14 professional teaching standards certification.Grant recipients253.15shall use the grant to participate in the certification253.16process.The grant award shall be paid to the national board 253.17 for professional teaching standards in the teacher's name. 253.18 Within 24 months of receiving certification, a grant recipient 253.19 must satisfactorily completeone year of teaching service in a253.20state schoolthe certification process or repay the state the 253.21 amount of the grant, except if the commissioner determines that 253.22 death or disability prevents the grant recipient from providing 253.23 the one year of teaching service. 253.24(b) The commissioner may award grants to eligible teachers253.25who have earned national board for professional teaching253.26standards certification. The amount of each grant shall not253.27exceed $1,000 and the commissioner shall establish criteria to253.28determine the actual amount of each grant. Grant recipients253.29shall use the grant proceeds for educational purposes, including253.30purchasing instructional materials, equipment, or supplies and253.31realizing professional development opportunities.253.32 Subd. 5. [REGIONAL COORDINATORS.] The state shall provide 253.33 the equivalent of four full-time regional coordinators with two 253.34 located in the seven-county metropolitan area and two located in 253.35 greater Minnesota. $25,000 per year, for the first two years 253.36 only, shall be provided to cover expenses of the regional 254.1 coordinators including, but not limited to, travel, meetings, 254.2 web page maintenance, and cost related to supporting candidate's 254.3 expenses. After the first two years, individual school 254.4 districts must negotiate with the exclusive representative of 254.5 the teachers in the district for coordinator positions. 254.6 Subd. 6. [SALARY INCENTIVE.] A national board certified 254.7 teacher currently teaching in a state school must receive a 254.8 $2,000 per year salary incentive for the life of the 254.9 certificate. The teacher must continue to provide direct 254.10 instruction to students in the classroom at least 65 percent of 254.11 their time to retain the salary incentive. 254.12 Subd. 7. [MENTORING INCENTIVE.] (a) A national board 254.13 certified teacher currently teaching in a state school must 254.14 receive a $1,500 per year mentoring incentive, if the board 254.15 certified teacher is trained and acts as a mentor for other 254.16 national board certification candidates. 254.17 (b) A school district must receive $5,000 per year for each 254.18 board certified teacher, if the school district uses a national 254.19 board certified teacher as a mentor to induct new teachers to 254.20 provide high quality professional development for career 254.21 teachers or to help low-achieving schools with school 254.22 improvement plans and professional development. The $5,000 must 254.23 be set aside in a separate account for the specified uses. 254.24 Sec. 58. [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 254.25 Subdivision 1. [ESTABLISHMENT.] A program is established 254.26 to allow Minnesota school districts, in collaboration with 254.27 public post-secondary institutions that offer a board of 254.28 teaching approved teacher preparation program, to offer 254.29 undergraduate and graduate teacher preparation opportunities. 254.30 The program must provide teacher preparation opportunities that 254.31 effectively address the needs of different types of schools, 254.32 students, and teachers. 254.33 Subd. 2. [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 254.34 TERMS.] (a) An applicant under this program must be a school 254.35 district. The school district must collaborate with a teacher 254.36 preparation program approved by the board of teaching and an 255.1 exclusive representative of the teachers in the district. The 255.2 program must be used to assist in improving teacher preparation 255.3 by placing teacher education students in preschool, elementary, 255.4 and secondary classrooms or other education settings. 255.5 (b) Each school district participating in this program may 255.6 select the teacher preparation model that best promotes 255.7 understanding the needs of each educational system or 255.8 institution. For example: 255.9 (1) a public school educator may teach courses that assist 255.10 in preparing future educators or take professional development 255.11 courses; or 255.12 (2) a post-secondary teacher may teach courses at the 255.13 school district or mentor student teachers. 255.14 Participation is not limited to one school or institution 255.15 and may involve other participants, including parent/community 255.16 groups, teacher organizations, and business groups. Contracting 255.17 schools and institutions are encouraged to develop program 255.18 components that engage nontraditional teacher preparation 255.19 students. 255.20 (c) Temporary placements made under this program must not 255.21 have a negative effect on participants' salaries, seniority, or 255.22 other benefits. Notwithstanding Minnesota Statutes, sections 255.23 122A.16 and 123B.02, subdivision 14, a member of the staff of a 255.24 post-secondary institution may teach in a preschool, elementary 255.25 school, secondary school, or other education settings, or 255.26 perform a service agreed upon under this section for which a 255.27 license would otherwise be required without holding the 255.28 applicable license. In addition, a licensed educator employed 255.29 by a school district may teach or perform a service, agreed upon 255.30 under this section, at a post-secondary institution without 255.31 meeting the applicable qualifications of the post-secondary 255.32 institution. A district is not subject to Minnesota Statutes, 255.33 section 127A.43, as a result of entering into an agreement 255.34 according to this section that enables a post-secondary educator 255.35 to teach or provide services in the district. All arrangements 255.36 and details regarding an exchange must be mutually agreed to by 256.1 each participating school district and post-secondary 256.2 institution before implementing the exchange. 256.3 (d) An educator who held a temporary position or an 256.4 exchanged position under this section must be continued in or 256.5 restored to the position previously held, or to a position of 256.6 like seniority, status, and pay upon return. Retirement 256.7 benefits under an employer-sponsored pension or retirement plan 256.8 must not be reduced because of time spent on an exchange or 256.9 temporary position under this section. 256.10 (e) An educator who is continued in or restored to a 256.11 position under paragraph (d): 256.12 (1) must be continued or restored without loss of 256.13 seniority; and 256.14 (2) may participate in insurance or other benefits offered 256.15 by the employer under its established rules and practices. 256.16 Subd. 3. [APPLICATION PROCESS.] To participate in this 256.17 program, a school district must submit an application to the 256.18 commissioner of children, families, and learning in the form and 256.19 manner established by the commissioner. The application must 256.20 describe how the applicant will improve teacher education by 256.21 providing undergraduate or graduate teacher preparation 256.22 opportunities in order to effectively address the needs of 256.23 different types of schools, students, and teachers, and how the 256.24 applicant will use technology to implement the program. The 256.25 commissioner may require additional information from an 256.26 applicant. 256.27 Subd. 4. [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 256.28 selecting program participants, the commissioner must determine: 256.29 (1) whether an applicant has met the requirements of this 256.30 section; 256.31 (2) whether the location of a program is particularly 256.32 suitable for realizing the purpose of this section; 256.33 (3) the number of teacher candidates, teachers, and 256.34 students who would participate in the program; 256.35 (4) the ability of the applicant to demonstrate the 256.36 positive effect of the program on students enrolled in a 257.1 participating school district by using standardized test scores, 257.2 the rate at which students pass the state's reading, math, and 257.3 writing basic skills test, or other valid and reliable 257.4 assessment measures; 257.5 (5) whether public post-secondary institutions with board 257.6 of teaching approved teacher preparation programs and other 257.7 organizations representing parents' business interests and 257.8 community interests are integral participants in the proposed 257.9 program; 257.10 (6) whether the program addresses the shortage of teachers 257.11 in subject areas identified by the commissioner of children, 257.12 families, and learning; and 257.13 (7) the ability of the applicant to provide information 257.14 about the program to interested school districts and 257.15 post-secondary institutions. 257.16 (b) The commissioner may select up to five applicants to 257.17 participate in this program for the 1999-2000 school year and 257.18 later. Participants must be located throughout the state. The 257.19 commissioner must provide one-time start-up costs of up to 257.20 $20,000 per participating site. 257.21 Subd. 5. [POST-SECONDARY INSTITUTION FUNDING.] A 257.22 post-secondary institution participating in this program as a 257.23 contracting party must provide the instructional costs of 257.24 teacher education students and may charge the students the costs 257.25 of tuition. 257.26 Subd. 6. [EVALUATION.] The commissioner must contract with 257.27 an independent qualified expert to evaluate the impact of the 257.28 program on teacher efficacy and student performance and present 257.29 a report to the commissioner and the education committees of the 257.30 legislature by February 15, 2005. 257.31 Sec. 59. [REALLOCATION OF EDUCATION RESOURCES.] 257.32 The Minnesota state colleges and universities and the 257.33 University of Minnesota must set aside a portion of their higher 257.34 education teacher education resources for teacher preparation 257.35 programs that are committed to meeting the projected teacher 257.36 shortages in areas identified by the department of children, 258.1 families, and learning. 258.2 Sec. 60. [BOARD OF TEACHING.] 258.3 The board of teaching must communicate with school 258.4 districts, including district human resources personnel, on the 258.5 procedures available to districts for expediting the hiring of 258.6 substitute teachers. 258.7 Sec. 61. [SCHOOL COUNSELOR ASSESSMENT.] 258.8 The department of children, families, and learning, in 258.9 consultation with school districts, shall determine methods of 258.10 meeting adequate local district needs for licensed school 258.11 counselors. The department shall consider recommended ratios, 258.12 the costs for meeting these ratios, and alternative strategies 258.13 for collaboration to provide counseling services to pupils, 258.14 especially in small districts. 258.15 Sec. 62. [RULES AND POLICIES.] 258.16 The revisor of statutes shall recodify state high school 258.17 league eligibility rules. The revisor shall work with the 258.18 league to clarify and eliminate discrepancies and 258.19 inconsistencies in league rules, policies, and bylaws affecting 258.20 student eligibility. The league shall pay the revisor for the 258.21 cost of this work, as determined by the revisor. 258.22 Sec. 63. [HIGH SCHOOL LEAGUE; TRANSITION.] 258.23 The terms of persons who are members appointed by the 258.24 governor on the effective date of section 42 are extended until 258.25 July 31 of the year in which the terms are scheduled to expire. 258.26 Sec. 64. [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] 258.27 Subdivision 1. [GRANT PROGRAM.] The commissioner of 258.28 children, families, and learning shall establish a grant program 258.29 for grants to school districts to evaluate alternative calendar 258.30 projects, including extended day, week, and year programs. 258.31 Districts may contract with a higher education institution to 258.32 conduct more comprehensive longitudinal research on student 258.33 achievement. The applicants shall evaluate the following: 258.34 (1) increased student achievement and other related 258.35 outcomes, including attitudes, skills, and behavior; 258.36 (2) quality of instructional time for the regular school 259.1 day and the extended learning component; 259.2 (3) quantity of instructional time and effect on student 259.3 outcomes; and 259.4 (4) use of technology to enhance student achievement in an 259.5 extended learning environment. 259.6 Subd. 2. [APPLICATION PROCESS.] To obtain a grant, an 259.7 applicant must submit an application to the commissioner in the 259.8 form and manner established by the commissioner. The 259.9 application must describe how the applicant will evaluate 259.10 alternative calendar projects as described in subdivision 1. 259.11 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 259.12 to applicants who meet the requirements of this section. The 259.13 commissioner must base the amount of the grant on the number of 259.14 children expected to participate in the program. Districts 259.15 receiving grants shall report to the commissioner of children, 259.16 families, and learning, and to the education committees of the 259.17 legislature by February 1, 2001, on the results of the 259.18 alternative calendar study. 259.19 Sec. 65. [MODEL STATE POLICY ON STUDENT RECORDS.] 259.20 Subdivision 1. [COMMISSIONER OF ADMINISTRATION.] By 259.21 September 1, 1999, the commissioner of administration shall 259.22 compile and make available a model policy that accurately 259.23 reflects state and federal data regulations regarding student 259.24 records and other data used by government agencies who serve 259.25 school-aged children. The model policy shall include procedures 259.26 and other guidelines detailing allowable use and transfer of 259.27 data according to state and federal law. 259.28 Subd. 2. [RECOMMENDATIONS TO THE LEGISLATURE.] By January 259.29 15, 2000, the commissioner, in consultation with representatives 259.30 from federal agencies, state agencies, county governments, 259.31 school districts, cities, and parents who have an interest in 259.32 student records and other applicable data, shall make 259.33 recommendations to the legislature regarding necessary 259.34 clarifications of state law and any enforcement mechanisms 259.35 identified as essential for the proper sharing of data. 259.36 Sec. 66. [SCHOOL YEAR START DATE.] 260.1 Subdivision 1. [GOODHUE.] Notwithstanding Minnesota 260.2 Statutes, section 120A.40, and Laws 1997, First Special Session 260.3 chapter 4, article 7, section 49, subdivision 1, for the 260.4 1999-2000 school year independent school district No. 253, 260.5 Goodhue, may begin the school year on August 30, 1999. 260.6 Subd. 2. [MILACA.] Notwithstanding Minnesota Statutes 260.7 1996, section 126.12, subdivision 1, and Laws 1997, First 260.8 Special Session chapter 4, article 7, section 49, subdivision 1, 260.9 for the 1998-1999 school year only, independent school district 260.10 No. 912, Milaca, may begin the school year on August 24, 1998. 260.11 Subd. 3. [WORTHINGTON.] Notwithstanding Minnesota 260.12 Statutes, section 120A.40, and Laws 1997, First Special Session 260.13 chapter 4, article 7, section 49, subdivision 1, for the 260.14 1999-2000 school year, independent school district No. 518, 260.15 Worthington, may begin the school year on August 23, 1999. 260.16 (Effective Date: Section 66, subdivision 2 (Milaca) is 260.17 effective retroactive to July 1, 1998.) 260.18 Sec. 67. [FUND TRANSFERS.] 260.19 Subdivision 1. [WHITE BEAR LAKE.] Notwithstanding 260.20 Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, 260.21 subdivision 4, on June 30, 1999, independent school district No. 260.22 624, White Bear Lake, a district recently out of statutory 260.23 operating debt, may permanently transfer up to $650,000 from its 260.24 debt redemption fund to its general fund without making a levy 260.25 reduction. 260.26 Subd. 2. [MONTICELLO.] Notwithstanding Minnesota Statutes, 260.27 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 260.28 30, 1999, independent school district No. 882, Monticello, may 260.29 permanently transfer up to $650,000 from its debt redemption 260.30 fund to its general fund. 260.31 Subd. 3. [GRAND MEADOW.] Notwithstanding Minnesota 260.32 Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 260.33 on June 30, 1999, independent school district No. 495, Grand 260.34 Meadow, may permanently transfer up to $300,000 from its 260.35 disabled access account in the general fund to its capital 260.36 fund. This transfer is contingent upon the school district's 261.1 successful construction of a new kindergarten through grade 12 261.2 school. 261.3 Subd. 4. [FARIBAULT.] Notwithstanding Minnesota Statutes, 261.4 section 123B.79, or other law, on or before June 30, 2000, 261.5 independent school district No. 656, Faribault, may transfer an 261.6 amount equal to the sale of the school district's excess 261.7 property from its capital operating account to the undesignated 261.8 general fund, not to exceed $1,000,000. This transfer shall be 261.9 used for the purposes of defraying the district's operating debt 261.10 and shall not be subject to salary negotiations. 261.11 Subd. 5. [WESTONKA.] Notwithstanding Minnesota Statutes, 261.12 sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 261.13 30, 1999, independent school district No. 277, Westonka, may 261.14 permanently transfer up to $235,000 from its debt redemption 261.15 fund to its general fund without making a levy reduction to help 261.16 the school district out of statutory operating debt. 261.17 (Effective Date: Section 67 (Fund Transfers) is effective 261.18 the day following final enactment.) 261.19 Sec. 68. [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 261.20 OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 261.21 The provisions of Laws 1998, chapter 398, article 5, 261.22 section 55, and related sections apply except as provided under 261.23 this article. 261.24 (Effective Date: Section 68 (State Board) is effective 261.25 December 31, 1999.) 261.26 Sec. 69. [APPROPRIATIONS.] 261.27 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 261.28 LEARNING.] The following sums are appropriated from the general 261.29 fund to the department of children, families, and learning in 261.30 the fiscal years indicated. 261.31 Subd. 2. [URBAN TEACHER PREPARATION PROGRAM.] For a grant 261.32 to the Minnesota state colleges and universities for an urban 261.33 teacher preparation program at Metropolitan State University: 261.34 $1,800,000 ..... 2000 261.35 This appropriation is available until June 30, 2001. 261.36 Subd. 3. [ALTERNATIVE PATHWAYS FOR TEACHER 262.1 PREPARATION.] For providing program participants under section 262.2 58 with start-up costs: 262.3 $750,000 ..... 2000 262.4 This appropriation is available until June 30, 2001. 262.5 The commissioner shall consider a proposal from independent 262.6 school district No. 138, North Branch. 262.7 Subd. 4. [MINNESOTA NEW TEACHER PROJECT.] For the state 262.8 portion of the Minnesota new teacher project: 262.9 $1,000,000 ..... 2000 262.10 $1,000,000 ..... 2001 262.11 Any balance in the first year does not cancel but is 262.12 available in the second year. 262.13 Districts participating in the new teacher project may 262.14 consider programs offered by Hamline university, the Minnesota 262.15 academy of educators, and other first-year teacher induction 262.16 programs. 262.17 Subd. 5. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 262.18 collaborative urban educator programs providing alternative 262.19 pathways to licensure: 262.20 $900,000 ..... 2000 262.21 $900,000 ..... 2001 262.22 Any balance in the first year does not cancel but is 262.23 available in the second year. 262.24 Subd. 6. [PROFESSIONAL TEACHING STANDARDS.] For grants to 262.25 promote and reward high professional teaching standards: 262.26 $800,000 ..... 2000 262.27 This appropriation is available until June 30, 2001. Of 262.28 this amount, $150,000 is for grants to teachers applying for 262.29 certification, $190,000 is for regional coordinators, $220,000 262.30 is for salary incentives, $70,000 is for mentor incentives, and 262.31 $170,000 is for school district incentives for using national 262.32 board certified teachers as a mentor. 262.33 All school district incentives from this appropriation 262.34 shall be set aside in a separate fund for the induction of new 262.35 teachers, high quality professional development, school 262.36 improvement plans, and professional development for staff in 263.1 low-achieving schools. 263.2 Subd. 7. [SCHOOL ADMINISTRATORS RECRUITMENT PROGRAM.] For 263.3 the Minnesota service cooperatives to plan and establish a 263.4 school administrators recruitment program to identify and 263.5 develop potential administrators within Minnesota school 263.6 districts and collaborate with post-secondary institutions to 263.7 deliver administrative preparation programs in a nontraditional 263.8 manner to these potential administrators and alternative 263.9 pathways to licensure: 263.10 $100,000 ..... 2000 263.11 $100,000 ..... 2001 263.12 Subd. 8. [PILLAGER REIMBURSEMENT.] For independent school 263.13 district No. 116, Pillager, for reimbursement of extraordinary 263.14 legal expenses due to a lawsuit with statewide implications: 263.15 $325,000 ..... 2000 263.16 Subd. 9. [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 263.17 the school improvement pilot training program established in 263.18 Laws 1997, First Special Session chapter 4, article 7, section 263.19 47: 263.20 $500,000 ..... 2000 263.21 This appropriation is available until June 30, 2001. 263.22 Subd. 10. [ALTERNATIVE CALENDAR EVALUATION PROJECTS.] For 263.23 alternative calendar evaluation projects: 263.24 $765,000 ..... 2000 263.25 $615,000 ..... 2001 263.26 $140,000 each year is for a grant to special school 263.27 district No. 6, South St. Paul, for the operation of an extended 263.28 day kindergarten program; $75,000 each year is for a grant to 263.29 independent school district No. 877, Buffalo; and $250,000 each 263.30 year is for a grant to independent school district No. 624, 263.31 White Bear Lake. 263.32 Any balance in the first year does not cancel but is 263.33 available in the second year. 263.34 Subd. 11. [TEACHER LICENSURE PROGRAM TO INCREASE THE 263.35 NUMBER OF METROPOLITAN AREA TEACHERS OF STUDENTS WITH EMOTIONAL 263.36 AND BEHAVIORAL DISORDERS.] 264.1 For implementing a metropolitan area teacher licensure 264.2 program to enable educational assistants who work with students 264.3 with emotional and behavioral disorders to enroll in a 264.4 collaborative and inclusive licensure program for teachers of 264.5 students with emotional and behavioral disorders that offers the 264.6 educational assistants the academic support and financial 264.7 assistance they need to obtain a teaching license in emotional 264.8 and behavioral disorders: 264.9 $125,000 ..... 2000 264.10 $125,000 ..... 2001 264.11 This appropriation is available until June 30, 2001. 264.12 (Effective Date: Section 69, subdivision 11 (Teacher 264.13 Licensure Appropriation) is effective July 1, 1999, and is 264.14 contingent upon proposed Minnesota Rules, part 8710.5600, as 264.15 published on November 2, 1998, at 23 S.R. 1030, being adopted 264.16 and the program being certified. If the proposed rule is 264.17 adopted and certified after July 1, 1999, section 69, 264.18 subdivision 11, is effective retroactive to July 1, 1999.) 264.19 Sec. 70. [REPEALER.] 264.20 (a) Minnesota Statutes 1998, section 120A.41, is repealed 264.21 effective retroactive to March 1, 1999, for the 1999-2000 school 264.22 year. 264.23 (b) Minnesota Statutes 1998, sections 127A.42, subdivision 264.24 8; 127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 264.25 subdivision 2; 127A.64; and 127A.66, subdivision 1, are repealed 264.26 effective December 31, 1999. 264.27 Sec. 71. [EFFECTIVE DATES.] 264.28 When preparing the prekindergarten through grade 12 264.29 education conference committee report for adoption by the 264.30 legislature, the revisor shall combine all effective date 264.31 notations in this article into this effective date section. 264.32 ARTICLE 8 264.33 LIBRARIES 264.34 Section 1. Laws 1997, First Special Session chapter 4, 264.35 article 8, section 4, is amended to read: 264.36 Sec. 4. [LIBRARYPILOTPROJECT.] 265.1 Subdivision 1. [ESTABLISHMENT.] Notwithstanding law to the 265.2 contrary and subject to approvals in subdivision 2, a public 265.3 library may operate as apilotlibrary project jointly with the 265.4 school library at Nashwauk-Keewatin high school, located in the 265.5 city of Nashwauk. The public library is established to serve 265.6 persons within the boundaries of independent school district No. 265.7 319, except the city of Keewatin. 265.8 Subd. 2. [APPROVALS.] Operation of the public library is 265.9 contingent upona resolution approved bythe governing bodies of 265.10 cities, towns, and unorganized townships within the geographical 265.11 boundaries of independent school district No. 319, except for 265.12 the city of Keewatin, entering into a joint powers agreement 265.13 under Minnesota Statutes 1998, section 471.59, to accomplish the 265.14 purpose of this section. The joint powers agreement must 265.15 provide for continuing the library project if one party to the 265.16 agreement withdraws from the agreement. For the purposes of 265.17 this subdivision, the Itasca county board is designated as the 265.18 governing body for the unorganized townships. 265.19 Subd. 3. [BOARD; APPOINTMENTS.] Theresolutionjoint 265.20 powers agreement in subdivision 2 shall provide for a library 265.21 board of five members as follows: two members appointed by the 265.22 school board of independent school district No. 319, one member 265.23 appointed by each town board located within independent school 265.24 district No. 319 boundaries, one member appointed by the council 265.25 of the city of Nashwauk, and one member appointed by the Itasca 265.26 county board to represent the unorganized towns within the 265.27 school district territory. 265.28 Subd. 4. [BOARD TERMS; COMPENSATION.] The library board 265.29 members shall serve for the term of thepilot programlibrary 265.30 project. An appointing authority may remove for misconduct or 265.31 neglect any member it has appointed to the board and may replace 265.32 that member by appointment. Board members shall receive no 265.33 compensation for their services but may be reimbursed for actual 265.34 and necessary travel expenses incurred in the discharge of 265.35 library board duties and activities. 265.36 Subd. 5. [FUNDING.]For taxes payable in 1998 and 1999266.1only,The library board may levy a tax in an amount up to 266.2 $25,000 annually on property located within the boundaries of 266.3 independent school district No. 319, except the city of 266.4 Keewatin. The Itasca county auditor shall collect the tax and 266.5 distribute it to the library board. The money may be used for 266.6 library staff and for the purchase of library materials, 266.7 including computer software. The levy must also fund the amount 266.8 necessary to receive bookmobile services from the Arrowhead 266.9 regional library system.For taxes payable in 1998 and 1999266.10only,The county may not levy under Minnesota Statutes, section 266.11 134.07, for the areas described in this section. 266.12 Subd. 6. [BUILDING.] The school district shall provide the 266.13 physical space and costs associated with operating the library 266.14 including, but not limited to, heat, light, telephone service, 266.15 and maintenance. 266.16 Subd. 7. [ORGANIZATION.] Immediately after appointment, 266.17 the library board shall organize by electing one of its number 266.18 as president and one as secretary, and it may appoint other 266.19 officers it finds necessary. 266.20 Subd. 8. [DUTIES.] The library board shall adopt bylaws 266.21 and regulations for the library and for the conduct of its 266.22 business as may be expedient and conformable to law. It shall 266.23 have exclusive control of the expenditure of all money collected 266.24 for it. The library board shall appoint a qualified library 266.25 director and other staff, establish the compensation of 266.26 employees, and remove any of them for cause. The library board 266.27 may contract with the school board, the regional library board, 266.28 or the city in which the library is located to provide 266.29 personnel, fiscal, or administrative services. The contract 266.30 shall state the personnel, fiscal, and administrative services 266.31 and payments to be provided by each party. 266.32 Subd. 9. [CRITERIA.] The library shall meet all 266.33 requirements in statutes and rules applicable to public 266.34 libraries and school media centers. A media supervisor licensed 266.35 by the board of teaching may be the director of the library. 266.36 Public parking, restrooms, drinking water, and other necessities 267.1 shall be easily accessible to library patrons. 267.2Subd. 10. [REPORT.] The library board shall report to the267.3department of children, families, and learning by February 1,267.41999, about the costs of providing the library service and the267.5number of patrons served.267.6Subd. 11. [EXPIRATION.] This section expires January 31,267.72000.267.8 Sec. 2. Laws 1997, First Special Session chapter 4, 267.9 article 9, section 7, subdivision 2, is amended to read: 267.10 Subd. 2. [APPLICATION; ELIGIBILITY.] The commissioner of 267.11 children, families, and learning shall establish a process and 267.12 application forms for library sites to apply for grant funds. 267.13 Libraries must describe how they will cooperate with schools. 267.14 An applicant must submit a technology plan with the 267.15 application. Eligible applicants must, at a minimum, describe 267.16 how the proposed project is consistent with the technology plan; 267.17 describe how it ensures interoperability of hardware, software, 267.18 and telecommunication and meets existing Minnesota technical 267.19 standards appropriate to the project; identify the specific site 267.20 needs that the project will address; define the project's 267.21 expected outcomes; and provide the source, type, and amounts of 267.22 all matching funds. To be eligible for a site-based technology 267.23 learning grant, a library site must: 267.24 (1) be a school library, a public library, or a partnership 267.25 of public and school libraries or be a publicly funded or 267.26 nonprofit library in partnership with school libraries, public 267.27 libraries, or public library systems; 267.28 (2) be a member of a regional multicounty, multitype 267.29 library cooperation system; 267.30 (3) have each dollar of grant money matched by at least $1 267.31 of library site money, including in-kind contributions; 267.32(3)(4) agree to disseminate and share information about 267.33 its project; 267.34(4)(5) provide a benefit to the greater community; and 267.35(5)(6) maintain any ongoing costs of support for the 267.36 technology project after the initial funding under the grant 268.1 program. 268.2 Sec. 3. Laws 1998, chapter 398, article 9, section 7, is 268.3 amended to read: 268.4 Sec. 7. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 268.5 SCHOOL MEDIA CENTERS.] 268.6 Subdivision 1. [ESTABLISHMENT.] The commissioner of 268.7 children, families, and learning and the director of the higher 268.8 education services office shall establish a program to provide 268.9 statewide licenses to commercial electronic databases of 268.10 periodicals, encyclopedias, and associated reference materials 268.11 for school media centersand, public libraries, state government 268.12 agency libraries, and public or private college or university 268.13 libraries. The commissioner, in consultation with Minitex and 268.14 in cooperation with the Library Planning Task Force, shall 268.15 solicit proposals for access licenses to commercial vendors of 268.16 the databases. Responses to those proposals shall be evaluated 268.17 by staff of the office of library development and services in 268.18 the department of children, families, and learning, Minitex 268.19 staff, and a representative panel of librarians and school media 268.20 specialistsand public librarians. 268.21 Subd. 2. [ELIGIBILITY.] Access to the selected databases 268.22 shall be made available to aschool or school district that is a268.23member of a multicounty, multitype library system as defined in268.24Minnesota Statutes, section 134.001, subdivision 6, or a public268.25library as defined in Minnesota Statutes, section 134.001,268.26subdivision 2, that is a member of a multicounty, multitype268.27library systemschool media center or library that is eligible 268.28 to participate in MnLink. With appropriate authentication any 268.29 user ofan eligible librarya school media center or library 268.30 that is eligible to participate in MnLink may have access to the 268.31 databases from a remote site. 268.32Subd. 3. [RESOURCE GRANTS.] Graduation rule resource268.33grants are available for the purposes of this section.268.34 Sec. 4. [APPROPRIATIONS.] 268.35 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 268.36 LEARNING.] The sums indicated in this section are appropriated 269.1 from the general fund to the department of children, families, 269.2 and learning for the fiscal years designated. 269.3 Subd. 2. [BASIC SUPPORT GRANTS.] For basic support grants 269.4 according to Minnesota Statutes, sections 134.32 to 134.35: 269.5 $8,495,000 ..... 2000 269.6 $8,570,000 ..... 2001 269.7 The 2000 appropriation includes $782,000 for 1999 and 269.8 $7,713,000 for 2000. 269.9 The 2001 appropriation includes $857,000 for 2000 and 269.10 $7,713,000 for 2001. 269.11 Subd. 3. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 269.12 grants according to Minnesota Statutes, sections 134.353 and 269.13 134.354, to multicounty, multitype library systems: 269.14 $903,000 ..... 2000 269.15 $903,000 ..... 2001 269.16 The 2000 appropriation includes $90,000 for 1999 and 269.17 $813,000 for 2000. 269.18 The 2001 appropriation includes $90,000 for 2000 and 269.19 $813,000 for 2001. 269.20 Subd. 4. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 269.21 grants to regional public library systems under Minnesota 269.22 Statutes, section 125B.20, subdivision 3: 269.23 $1,700,000 ..... 2000 269.24 $1,700,000 ..... 2001 269.25 Any balance in the first year does not cancel but is 269.26 available in the second year. 269.27 Subd. 5. [LIBRARY FOR THE BLIND.] For compact shelving, 269.28 technology, and staffing for the Minnesota library for the blind 269.29 and physically handicapped: 269.30 $550,000 ..... 2000 269.31 Subd. 6. [DATABASE ACCESS PROGRAM.] For the database 269.32 access program for public libraries and school media centers 269.33 under section 3: 269.34 $350,000 ..... 2000 269.35 $350,000 ..... 2001 269.36 ARTICLE 9 270.1 STATE AGENCIES 270.2 Section 1. Minnesota Statutes 1998, section 125A.64, is 270.3 amended by adding a subdivision to read: 270.4 Subd. 6. [EXEMPTION TO LABOR DAY SCHOOL START 270.5 RESTRICTION.] Notwithstanding Minnesota Statutes, section 270.6 120A.40, subdivision 1, the board of the Minnesota state 270.7 academies for the deaf and blind may begin the school year any 270.8 day prior to September 1. 270.9 Sec. 2. Minnesota Statutes 1998, section 129C.10, is 270.10 amended by adding a subdivision to read: 270.11 Subd. 8. [EXEMPTION TO LABOR DAY SCHOOL START 270.12 RESTRICTION.] Notwithstanding Minnesota Statutes, section 270.13 120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 270.14 center for arts education may begin the school year any day 270.15 prior to September 1. 270.16 Sec. 3. Minnesota Statutes 1998, section 626.556, is 270.17 amended by adding a subdivision to read: 270.18 Subd. 3b. [AGENCY RESPONSIBLE FOR ASSESSING OR 270.19 INVESTIGATING REPORTS OF MALTREATMENT.] The department of 270.20 children, families, and learning is the agency responsible for 270.21 assessing or investigating allegations of child maltreatment in 270.22 schools as defined in sections 120A.05, subdivisions 9, 11, and 270.23 13; and 124D.10. 270.24 Sec. 4. Minnesota Statutes 1998, section 626.556, 270.25 subdivision 10b, is amended to read: 270.26 Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 270.27 FACILITY.] (a) This section applies to the commissioner of 270.28 children, families, and learning. The commissioner of the 270.29 agency responsible for assessing or investigating the report 270.30 shall immediately investigate if the report alleges that: 270.31 (1) a child who is in the care of a facility as defined in 270.32 subdivision 2 is neglected, physically abused, or sexually 270.33 abused by an individual in that facility, or has been so 270.34 neglected or abused by an individual in that facility within the 270.35 three years preceding the report; or 270.36 (2) a child was neglected, physically abused, or sexually 271.1 abused by an individual in a facility defined in subdivision 2, 271.2 while in the care of that facility within the three years 271.3 preceding the report. 271.4 The commissioner shall arrange for the transmittal to the 271.5 commissioner of reports received by local agencies and may 271.6 delegate to a local welfare agency the duty to investigate 271.7 reports. In conducting an investigation under this section, the 271.8 commissioner has the powers and duties specified for local 271.9 welfare agencies under this section. The commissioner or local 271.10 welfare agency may interview any children who are or have been 271.11 in the care of a facility under investigation and their parents, 271.12 guardians, or legal custodians. 271.13 (b) Prior to any interview, the commissioner or local 271.14 welfare agency shall notify the parent, guardian, or legal 271.15 custodian of a child who will be interviewed in the manner 271.16 provided for in subdivision 10d, paragraph (a). If reasonable 271.17 efforts to reach the parent, guardian, or legal custodian of a 271.18 child in an out-of-home placement have failed, the child may be 271.19 interviewed if there is reason to believe the interview is 271.20 necessary to protect the child or other children in the 271.21 facility. The commissioner or local agency must provide the 271.22 information required in this subdivision to the parent, 271.23 guardian, or legal custodian of a child interviewed without 271.24 parental notification as soon as possible after the interview. 271.25 When the investigation is completed, any parent, guardian, or 271.26 legal custodian notified under this subdivision shall receive 271.27 the written memorandum provided for in subdivision 10d, 271.28 paragraph (c). 271.29 (c) In conducting investigations under this subdivision the 271.30 commissioner or local welfare agency shall obtain access to 271.31 information consistent with subdivision 10, paragraphs (h), (i), 271.32 and (j). 271.33 (d) Except for foster care and family child care, the 271.34 commissioner has the primary responsibility for the 271.35 investigations and notifications required under subdivisions 10d 271.36 and 10f for reports that allege maltreatment related to the care 272.1 provided by or in facilities licensed by the commissioner. The 272.2 commissioner may request assistance from the local social 272.3 service agency. 272.4 Sec. 5. [REVISOR INSTRUCTION.] 272.5 In the next and subsequent editions of Minnesota Statutes 272.6 and Minnesota Rules, the revisor shall change all references of 272.7 the "Lola and Rudy Perpich Minnesota center for arts education" 272.8 to the "Perpich center for arts education." 272.9 Sec. 6. [TRANSFER OF PROGRAMS.] 272.10 The powers and duties of the department of children, 272.11 families, and learning with respect to drug policy and violence 272.12 prevention under Minnesota Statutes 1998, sections 119A.25, 272.13 119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 272.14 and 119A.34, are transferred to the department of public safety 272.15 under Minnesota Statutes, section 15.039. 272.16 Sec. 7. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 272.17 AND LEARNING.] 272.18 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 272.19 LEARNING.] The sums indicated in this section are appropriated 272.20 from the general fund unless otherwise indicated to the 272.21 department of children, families, and learning for the fiscal 272.22 years designated. 272.23 Subd. 2. [TEACHING AND LEARNING PROGRAM.] (a) For the 272.24 teaching and learning program in the department of children, 272.25 families, and learning: 272.26 $9,979,000 ..... 2000 272.27 $9,926,000 ..... 2001 272.28 (b) Any balance the first year does not cancel but is 272.29 available in the second year. 272.30 (c) $21,000 each year is from the trunk highway fund. 272.31 (d) $621,000 in 2000 and $629,000 in 2001 is for the 272.32 academic excellence foundation. 272.33 (e) $673,000 in 2000 and $678,000 in 2001 is for the board 272.34 of teaching. 272.35 (f) Notwithstanding Minnesota Statutes, section 15.53, 272.36 subdivision 2, the commissioner of children, families, and 273.1 learning may contract with a school district for a period no 273.2 longer than five consecutive years to work in the development or 273.3 implementation of the graduation rule. The commissioner may 273.4 contract for services and expertise as necessary. The contracts 273.5 are not subject to Minnesota Statutes, section 16B.06. 273.6 Subd. 3. [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 273.7 development program in the department of children, families, and 273.8 learning: 273.9 $1,162,000 ..... 2000 273.10 $1,183,000 ..... 2001 273.11 Any balance the first year does not cancel but is available 273.12 in the second year. 273.13 Subd. 4. [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 273.14 For the management and support services program in the 273.15 department of children, families, and learning: 273.16 $16,987,000 ..... 2000 273.17 $14,421,000 ..... 2001 273.18 (b) Any balance the first year does not cancel but is 273.19 available in the second year. 273.20 (c) $165,000 in 2000 is for the state board of education. 273.21 Any functions of the state board of education that are not 273.22 specifically transferred to another agency are transferred to 273.23 the department of children, families, and learning under 273.24 Minnesota Statutes, section 15.039. For the position that is 273.25 classified, upon transferring the responsibilities, the current 273.26 incumbent is appointed to the classified position without exam 273.27 or probationary period. 273.28 (d) $2,000,000 in 2000 is for litigation costs and may only 273.29 be used for those purposes. This is a one-time appropriation. 273.30 (e) The commissioner of children, families, and learning 273.31 must provide a written update of their strategic plan for 273.32 technology to the department of finance and the office of 273.33 technology by April 1, 2000. 273.34 Subd. 5. [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 273.35 office of community services program in the department of 273.36 children, families, and learning: 274.1 $4,188,000 ..... 2000 274.2 $4,255,000 ..... 2001 274.3 Any balance the first year does not cancel but is available 274.4 the second year. 274.5 Sec. 8. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 274.6 CENTER FOR ARTS EDUCATION.] 274.7 The sums indicated in this section are appropriated from 274.8 the general fund to the center for arts education for the fiscal 274.9 years designated: 274.10 $7,239,000 ..... 2000 274.11 $7,400,000 ..... 2001 274.12 Of each year's appropriation, $154,000 is to fund artist 274.13 and arts organization participation in the education residency 274.14 and education technology projects, $75,000 is for school support 274.15 for the residency project, $121,000 is for further development 274.16 of the partners: arts and school for students (PASS) program, 274.17 including pilots, and $220,000 is to fund the center for arts 274.18 education base for asset preservation and facility repair. The 274.19 guidelines for the education residency project and the pass 274.20 program shall be developed and defined by the center for arts 274.21 education in cooperation with the Minnesota arts board. The 274.22 Minnesota arts board shall participate in the review and 274.23 allocation process. The center for arts education and the 274.24 Minnesota arts board shall cooperate to fund these projects. 274.25 Any balance in the first year does not cancel but is 274.26 available in the second year. 274.27 Sec. 9. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 274.28 (a) The sums indicated in this section are appropriated 274.29 from the general fund to the Minnesota state academies for the 274.30 deaf and the blind for the fiscal years designated: 274.31 $10,125,000 ..... 2000 274.32 $10,344,000 ..... 2001 274.33 (b) Any balance in the first year does not cancel but is 274.34 available in the second year. 274.35 (c) $75,000 each year is for asset preservation and 274.36 facility repair. 275.1 (d) $15,000 each year is for the cost of holding board 275.2 meetings in Faribault. 275.3 Sec. 10. [REVISOR INSTRUCTION.] 275.4 In the next and subsequent editions of Minnesota Statutes 275.5 the revisor shall renumber each section in column A with the 275.6 corresponding number in column B. The revisor shall correct all 275.7 cross-references to be consistent with the renumbering. 275.8 Column A Column B 275.9 119A.25 299A.291 275.10 119A.26 299A.292 275.11 119A.27 299A.293 275.12 119A.28 299A.294 275.13 119A.29 299A.295 275.14 119A.31 299A.296 275.15 119A.32 299A.297 275.16 119A.33 299A.298 275.17 119A.34 299A.299 275.18 Sec. 11. [REPEALER.] 275.19 Minnesota Statutes 1998, section 119A.04, subdivision 5, is 275.20 repealed. 275.21 ARTICLE 10 275.22 EDUCATION CODE; COMPULSORY ATTENDANCE 275.23 Section 1. Minnesota Statutes 1998, section 120A.05, is 275.24 amended by adding a subdivision to read: 275.25 Subd. 3a. [CHARTER SCHOOL.] "Charter school" means a 275.26 public school formed according to section 124D.20. 275.27 Sec. 2. Minnesota Statutes 1998, section 120A.05, is 275.28 amended by adding a subdivision to read: 275.29 Subd. 11a. [PUBLIC SCHOOL.] "Public school" means a school 275.30 that receives state funds, provides an education to students 275.31 needed to meet outcomes or standards determined by the state, 275.32 and is accountable for the services it provides to students. 275.33 Sec. 3. Minnesota Statutes 1998, section 120A.22, 275.34 subdivision 1, is amended to read: 275.35 Subdivision 1. [PARENTAL RESPONSIBILITY.] The parent of a 275.36 child is primarily responsible for assuring that the child 276.1 acquires knowledge and skills that are essential for effective 276.2 citizenship and that the child is enrolled in school or receives 276.3 other instruction. 276.4 Sec. 4. Minnesota Statutes 1998, section 120A.22, 276.5 subdivision 5, is amended to read: 276.6 Subd. 5. [AGES AND TERMS.] (a) Every child between seven 276.7 and 16 years of age must receive instruction. Every child under 276.8 the age of seven who is enrolled in a half-day kindergarten, or 276.9 a full-day kindergarten program on alternate days, or other 276.10 kindergarten programs shall receive instruction. Except as 276.11 provided in subdivision 6, a parent may withdraw a child under 276.12 the age of seven from enrollment at any time. 276.13 (b)A school district by annual board action may require276.14children subject to this subdivision to receive instruction in276.15summer school. A district that acts to require children to276.16receive instruction in summer school shall establish at the time276.17of its action the criteria for determining which children must276.18receive instruction.If a school board determines that some 276.19 students in the district must attend summer school, then the 276.20 truancy laws of chapters 260 and 260A apply to the students 276.21 required to attend summer school. 276.22 ARTICLE 11 276.23 CURRICULUM AND ASSESSMENT 276.24 Section 1. Minnesota Statutes 1998, section 120B.11, 276.25 subdivision 5, is amended to read: 276.26 Subd. 5. [REPORT.] (a) By October 1 of each year, the 276.27 school board shall use standard statewide reporting procedures 276.28 the commissioner develops and adopt a report that includes the 276.29 following: 276.30 (1) student performance goals for meeting state graduation 276.31 standards adopted for that year; 276.32 (2) results of local assessment data, and any additional 276.33 test data; 276.34 (3) the annual school district improvement plans; 276.35 (4) information about district and learning site progress 276.36 in realizing previously adopted improvement plans; and 277.1 (5) the amount and type of revenue attributed to each 277.2 education site as defined in section 123B.04, subdivision 2. 277.3 (b) The school board shall publish the report in the local 277.4 newspaper with the largest circulation in the district or by 277.5 mail. The board shall make a copy of the report available to 277.6 the public for inspection. The board shall send a copy of the 277.7 report to the commissioner of children, families, and learning 277.8 by October 15 of each year. 277.9 (c) The title of the report shall contain the name and 277.10 number of the school district and read "Annual Report on 277.11 Curriculum, Instruction, and Student Performance."The report277.12must include at least the following information about advisory277.13committee membership:277.14(1) the name of each committee member and the date when277.15that member's term expires;277.16(2) the method and criteria the school board uses to select277.17committee members; and277.18(3) the date by which a community resident must apply to277.19next serve on the committee.277.20 Sec. 2. [REPEALER.] 277.21 Minnesota Statutes 1998, sections 120B.10; 120B.11, 277.22 subdivisions 3, 4, and 7; and 120B.24, are repealed. 277.23 ARTICLE 12 277.24 STUDENT RIGHTS, RESPONSIBILITIES, AND BEHAVIOR 277.25 Section 1. Minnesota Statutes 1998, section 121A.06, is 277.26 amended to read: 277.27 121A.06 [REPORTS OF DANGEROUS WEAPON INCIDENTS IN SCHOOL 277.28 ZONES.] 277.29 Subdivision 1. [DEFINITIONS.] As used in this section: 277.30 (1) "dangerous weapon" has the meaning given it in section 277.31 609.02, subdivision 6; and 277.32 (2)"school" has the meaning given it in section 120A.22,277.33subdivision 4; and277.34(3)"school zone" has the meaning given it in section 277.35 152.01, subdivision 14a, clauses (1) and (3). 277.36 Subd. 2. [REPORTS; CONTENT.]By January 1, 1994,The 278.1 commissioner, in consultation with the criminal and juvenile278.2information policy group,shalldevelopmaintain a standardized 278.3 form to be used by schools to report incidents involving the use 278.4 or possession of a dangerous weapon in school zones.The form278.5shall include the following information:278.6(1) a description of each incident, including a description278.7of the dangerous weapon involved in the incident;278.8(2) where, at what time, and under what circumstances the278.9incident occurred;278.10(3) information about the offender, other than the278.11offender's name, including the offender's age; whether the278.12offender was a student and, if so, where the offender attended278.13school; and whether the offender was under school expulsion or278.14suspension at the time of the incident;278.15(4) information about the victim other than the victim's278.16name, if any, including the victim's age; whether the victim was278.17a student and, if so, where the victim attended school; and if278.18the victim was not a student, whether the victim was employed at278.19the school;278.20(5) the cost of the incident to the school and to the278.21victim; and278.22(6) the action taken by the school administration to278.23respond to the incident.278.24The commissioner also shall develop an alternative278.25reporting format that allows school districts to provide278.26aggregate data, with an option to use computer technology to278.27report the data.278.28 Subd. 3. [REPORTS; FILING REQUIREMENTS.] ByFebruary 1 and278.29 July 1 of each year, each school shall report incidents 278.30 involving the use or possession of a dangerous weapon in school 278.31 zones to the commissioner. The reports must be made on the 278.32 standardized forms or using the alternative format developed by 278.33 the commissioner under subdivision 2. The commissioner shall 278.34 compile the information it receives from the schools and report 278.35 it annually to the commissioner of public safety, the criminal 278.36 and juvenile information policy group, and the legislature. 279.1 Sec. 2. Minnesota Statutes 1998, section 121A.11, 279.2 subdivision 1, is amended to read: 279.3 Subdivision 1. [DISPLAYED BY SCHOOLS.] Every public school 279.4 in Minnesota must display an appropriate United States flag when 279.5 in session.The flag shall be displayed upon the school grounds279.6or outside the school building, on a proper staff, on every279.7legal holiday occurring during the school term and at such other279.8times as the board of the district may direct.The flag must be 279.9 displayed within the principal rooms of the school building at 279.10 all other times while school is in session. 279.11 Sec. 3. Minnesota Statutes 1998, section 121A.15, is 279.12 amended to read: 279.13 121A.15 [HEALTH STANDARDS; IMMUNIZATIONS; SCHOOL CHILDREN.] 279.14 Subdivision 1. [IMMUNIZATION REQUIREMENT.] Except as 279.15 provided in subdivisions 3, 4, and 10, no person over two months 279.16 old may be allowed to enroll or remain enrolled in any 279.17 elementary or secondary school or child care facility in this 279.18 state until the person has submitted to the administratoror279.19other person having general control and supervision of the279.20school or child care facility,one of the following statements: 279.21 (1) a statement froma physician or a public clinic which279.22provides immunizationsan immunization provider stating that the 279.23 person has received immunization, consistent with medically 279.24 acceptable standards, against measles after having attained the 279.25 age of 12 months, rubella, diphtheria, tetanus, pertussis, 279.26 polio, mumps, haemophilus influenza type b, and hepatitis B; or 279.27 (2) a statement froma physician or a public clinic which279.28provides immunizationsan immunization provider stating that the 279.29 person has received immunizations, consistent with medically 279.30 acceptable standards, against measles after having attained the 279.31 age of 12 months, rubella, mumps, and haemophilus influenza type 279.32 b and that the person has commenced a schedule of immunizations 279.33 for diphtheria, tetanus, pertussis, polio, and hepatitis B and 279.34 which indicates the month and year of each immunization received. 279.35 Subd. 2. [SCHEDULE OF IMMUNIZATIONS.] No person who has 279.36 commenced a treatment schedule of immunization pursuant to 280.1 subdivision 1, clause (2), may remain enrolled in any child care 280.2 facility, elementary, or secondary school in this state after 18 280.3 months of enrollment unless there is submitted to the 280.4 administrator, or other person having general control and280.5supervision of the school or child care facility,a statement 280.6 froma physician or a public clinic which provides immunizations280.7 an immunization provider that the person has completed the 280.8 primary schedule of immunizations for diphtheria, tetanus, 280.9 pertussis, polio, and hepatitis B. The statement must include 280.10 the month, day, and year of each additional immunization 280.11 received. For a child less than seven years of age, a primary 280.12 schedule of immunizations shall consist of four doses of vaccine 280.13 for diphtheria, tetanus, and pertussis and three doses of 280.14 vaccine for poliomyelitis and hepatitis B. For a child seven 280.15 years of age or older, a primary schedule of immunizations shall 280.16 consist of three doses of vaccine for diphtheria, tetanus, 280.17 polio, and hepatitis B as specified in subdivision 10. 280.18 Subd. 3. [EXEMPTIONS FROM IMMUNIZATIONS.] (a) If a person 280.19 is at least seven years old and has not been immunized against 280.20 pertussis, the person must not be required to be immunized 280.21 against pertussis. 280.22 (b) If a person is at least 18 years old and has not 280.23 completed a series of immunizations against poliomyelitis, the 280.24 person must not be required to be immunized against 280.25 poliomyelitis. 280.26 (c) If a statement, signed by a physician, is submitted to 280.27 the administratoror other person having general control and280.28supervision of the school or child care facilitystating that an 280.29 immunization is contraindicated for medical reasons or that 280.30 laboratory confirmation of the presence of adequate immunity 280.31 exists, the immunization specified in the statement need not be 280.32 required. 280.33 (d) If a notarized statement signed by the minor child's 280.34 parent or guardian or by the emancipated person is submitted to 280.35 the administratoror other person having general control and280.36supervision of the school or child care facilitystating that 281.1 the person has not been immunized as prescribed in subdivision 1 281.2 because of the conscientiously held beliefs of the parent or 281.3 guardian of the minor child or of the emancipated person, the 281.4 immunizations specified in the statement shall not be required. 281.5 This statement must also be forwarded to the commissioner of the 281.6 department of health. 281.7 (e) If the person is under 15 months, the person is not 281.8 required to be immunized against measles, rubella, or mumps. 281.9 (f) If a person is at least five years old and has not been 281.10 immunized against haemophilus influenza type b, the person is 281.11 not required to be immunized against haemophilus influenza type 281.12 b. 281.13 Subd. 4. [SUBSTITUTE IMMUNIZATION STATEMENT.] (a) A person 281.14 who is enrolling or enrolled in an elementary or secondary 281.15 school or child care facility may substitute a statement from 281.16 the emancipated person or a parent or guardian if the person is 281.17 a minor child in lieu of the statement froma physician or281.18public clinic which provides immunizationsan immunization 281.19 provider. If the statement is from a parent or guardian or 281.20 emancipated person, the statement must indicate the month and 281.21 year of each immunization given. 281.22 (b) In order for the statement to be acceptable for a 281.23 person who is enrolling in an elementary school and who is six 281.24 years of age or younger, it must indicate that the following was 281.25 given: no less than one dose of vaccine each for measles, 281.26 mumps, and rubellagiven separately or in combination; no less 281.27 than four doses of vaccine for poliomyelitis, unless the third 281.28 dose was given after the fourth birthday, then three doses are 281.29 minimum; no less than five doses of vaccine for diphtheria, 281.30 tetanus, and pertussis, unless the fourth dose was given after 281.31 the fourth birthday, then four doses are minimum; and no less 281.32 than three doses of vaccine for hepatitis B as specified in 281.33 subdivision 10. 281.34 (c) In order for the statement to be consistent with 281.35 subdivision 10 and acceptable for a person who is enrolling in 281.36 an elementary or secondary school and is age seven through age 282.1 19, the statement must indicate that the person has received no 282.2 less than one dose of vaccine each for measles, mumps, and 282.3 rubellagiven separately or in combination, and no less than 282.4 three doses of vaccine for poliomyelitis, diphtheria, tetanus, 282.5 and hepatitis B. 282.6 (d) In order for the statement to be acceptable for a 282.7 person who is enrolling in a secondary school, and who was born 282.8 after 1956 and is 20 years of age or older, the statement must 282.9 indicate that the person has received no less than one dose of 282.10 vaccine each for measles, mumps, and rubellagiven separately or282.11in combination, and no less than one dose of vaccine for 282.12 diphtheria and tetanus within the preceding ten years. 282.13 (e) In order for the statement to be acceptable for a 282.14 person who is enrolling in a child care facility and who is at 282.15 least 15 months old but who has not reached five years of age, 282.16 it must indicate that the following were given: no less than 282.17 one dose of vaccine each for measles, mumps, and rubellagiven282.18separately or in combination; no less than one dose of vaccine 282.19 for haemophilus influenza type b; no less than four doses of 282.20 vaccine for diphtheria, tetanus, and pertussis; and no less than 282.21 three doses of vaccine for poliomyelitis. 282.22 (f) In order for the statement to be acceptable for a 282.23 person who is enrolling in a child care facility and who is five 282.24 or six years of age, it must indicate that the following was 282.25 given: no less than one dose of vaccine each for measles, 282.26 mumps, and rubellagiven separately or in combination; no less 282.27 than four doses of vaccine for diphtheria, tetanus, and 282.28 pertussis; and no less than three doses of vaccine for 282.29 poliomyelitis. 282.30 (g) In order for the statement to be acceptable for a 282.31 person who is enrolling in a child care facility and who is 282.32 seven years of age or older, the statement must indicate that 282.33 the person has received no less than one dose of vaccine each 282.34 for measles, mumps, and rubellagiven separately or in282.35combinationand consistent with subdivision 10, and no less than 282.36 three doses of vaccine for poliomyelitis, diphtheria, and 283.1 tetanus. 283.2(h) The commissioner of health, on finding that any of the283.3above requirements are not necessary to protect the public's283.4health, may suspend for one year that requirement.283.5 Subd. 5. [TRANSFER OF IMMUNIZATION STATEMENTS.] If a 283.6 person transfers from one elementary or secondary school to 283.7 another, the school board of a public school district or the 283.8 administrator of a nonpublic school may allow the person up to a 283.9 maximum of 30 days to submit one or more of the statements as 283.10 specified in subdivision 1 or 3, during which time the person 283.11 may enroll in and attend the school. If a person enrolls in a 283.12 child care facility in which at least 75 percent of children in 283.13 the facility participate on a one-time only or occasional basis 283.14 to a maximum of 45 hours per child, per month, or is placed in a 283.15 facility by a crisis nursery, the person shall be exempt from 283.16 all requirements of this section for up to five consecutive 283.17 days, starting from the first day of attendance. 283.18 Subd. 6. [SUSPENSION OF IMMUNIZATION REQUIREMENT.] The 283.19 commissioner of health, on finding that an immunization required 283.20 pursuant to this section is not necessary to protect the 283.21 public's health, may suspend for one year the requirement that 283.22 children receive that immunization. 283.23 Subd. 7. [FILE ON IMMUNIZATION RECORDS.] Each school or 283.24 child care facility shall maintain on file immunization records 283.25 for all persons in attendance that contain the information 283.26 required by subdivisions 1, 2, and 3. The school shall maintain 283.27 the records for at least five years after the person attains the 283.28 age of majority. The department of health and the board of 283.29 health, as defined in section 145A.02, subdivision 2, in whose 283.30 jurisdiction the school or child care facility is located, shall 283.31 have access to the files maintained pursuant to this 283.32 subdivision. When a person transfers to another elementary or 283.33 secondary school or child care facility, the administratoror283.34other person having general control and supervision of the283.35school or child care facilityshall assist the person's parent 283.36 or guardian in the transfer of the immunization file to the 284.1 person's new school or child care facility within 30 days of the 284.2 transfer. Upon the request of a public or private 284.3 post-secondary educational institution, as defined in section 284.4 135A.14, the administratoror other person having general284.5control or supervision of a schoolshall assist in the transfer 284.6 of a student's immunization file to the post-secondary 284.7 institution. 284.8 Subd. 8. [REPORT.] The administratoror other person284.9having general control and supervision of the elementary or284.10secondary schoolshall file a report with the commissioner on 284.11 all persons enrolled in the school. The superintendent of each 284.12 district shall file a report with the commissioner for all 284.13 persons within the district receiving instruction in a home 284.14 school in compliance with sections 120A.22 and 120A.24. The 284.15 parent of persons receiving instruction in a home school shall 284.16 submit the statements as required by subdivisions 1, 2, 3, and 4 284.17 to the superintendent of the district in which the person 284.18 resides by October 1 of each school year. The school report 284.19 must be prepared on forms developed jointly by the commissioner 284.20 of health and the commissioner of children, families, and 284.21 learning and be distributed to the local districts by the 284.22 commissioner of health. The school report must state the number 284.23 of persons attending the school, the number of persons who have 284.24 not been immunized according to subdivision 1 or 2, and the 284.25 number of persons who received an exemption under subdivision 3, 284.26 clause (c) or (d). The school report must be filed with the 284.27 commissioner of children, families, and learning within 60 days 284.28 of the commencement of each new school term. Upon request, a 284.29 district must be given a 60-day extension for filing the school 284.30 report. The commissioner of children, families, and learning 284.31 shall forward the report, or a copy thereof, to the commissioner 284.32 of health who shall provide summary reports to boards of health 284.33 as defined in section 145A.02, subdivision 2. The administrator 284.34or other person having general control and supervision of the284.35child care facilityshall file a report with the commissioner of 284.36 human services on all persons enrolled in the child care 285.1 facility. The child care facility report must be prepared on 285.2 forms developed jointly by the commissioner of health and the 285.3 commissioner of human services and be distributed to child care 285.4 facilities by the commissioner of health. The child care 285.5 facility report must state the number of persons enrolled in the 285.6 facility, the number of persons with no immunizations, the 285.7 number of persons who received an exemption under subdivision 3, 285.8 clause (c) or (d), and the number of persons with partial or 285.9 full immunization histories. The child care facility report 285.10 must be filed with the commissioner of human services by 285.11 November 1 of each year. The commissioner of human services 285.12 shall forward the report, or a copy thereof, to the commissioner 285.13 of health who shall provide summary reports to boards of health 285.14 as defined in section 145A.02, subdivision 2. The report 285.15 required by this subdivision is not required of a family child 285.16 care or group family child care facility, for prekindergarten 285.17 children enrolled in any elementary or secondary school provided 285.18 services according to sections 125A.05 and 125A.06, nor for 285.19 child care facilities in which at least 75 percent of children 285.20 in the facility participate on a one-time only or occasional 285.21 basis to a maximum of 45 hours per child, per month. 285.22 Subd. 9. [DEFINITIONS.] As used in this section the 285.23 following terms have the meanings given them. 285.24 (a) "Elementary or secondary school" includes any public 285.25 school as defined in section 120A.05, subdivisions 9, 11, 13, 285.26 and 17, or nonpublic school, church, or religious organization, 285.27 or home school in which a child is provided instruction in 285.28 compliance with sections 120A.22 and 120A.24. 285.29 (b) "Person enrolled in any elementary or secondary school" 285.30 means a personborn after 1956 andenrolled in grades 285.31 kindergarten through 12, and a child with a disability receiving 285.32 special instruction and services as required insectionssection 285.33 125A.03to 125A.24 and 125A.65, excluding a child being provided 285.34 services according to section 125A.05,paragraph (c), or285.35125A.06, paragraph (d)subdivisions 3 and 7. 285.36 (c) "Child care facility" includes those child care 286.1 programs subject to licensure under chapter 245A, and Minnesota 286.2 Rules, chapters 9502 and 9503. 286.3 (d) "Family child care" means child care for no more than 286.4 ten children at one time of which no more than six are under 286.5 school age. The licensed capacity must include all children of 286.6 any caregiver when the children are present in the residence. 286.7 (e) "Group family child care" means child care for no more 286.8 than 14 children at any one time. The total number of children 286.9 includes all children of any caregiver when the children are 286.10 present in the residence. 286.11 (f) "Administrator" means any individual having general 286.12 control and supervision of a school or child care facility. 286.13 (g) "Immunization provider" means any physician, health 286.14 care provider, or public clinic that provides immunizations. 286.15 Subd. 10. [REQUIREMENTS FOR IMMUNIZATION STATEMENTS.] A 286.16 statement required to be submitted under subdivisions 1, 2, and 286.17 4 to document evidence of immunization shall include month, day, 286.18 and year for immunizations administered after January 1, 1990. 286.19 (a)For persons enrolled in grades 7 and 12 during the286.201996-1997 school term, the statement must indicate that the286.21person has received a dose of tetanus and diphtheria toxoid no286.22earlier than 11 years of age.286.23(b) Except as specified in paragraph (e), for persons286.24enrolled in grades 7, 8, and 12 during the 1997-1998 school286.25term, the statement must indicate that the person has received a286.26dose of tetanus and diphtheria toxoid no earlier than 11 years286.27of age.286.28(c)Except as specified in paragraph(e)(c), for persons 286.29 enrolled in grades 7 through 12 during the 1998-1999 school term 286.30 and for each year thereafter, the statement must indicate that 286.31 the person has received a dose of tetanus and diphtheria toxoid 286.32 no earlier than 11 years of age. 286.33(d)(b) For persons enrolled in grades 7 through 12during286.34the 1996-1997 school year and for each year thereafter, the 286.35 statement must indicate that the person has received at least 286.36 two doses of vaccine against measles, mumps, and rubella,given287.1alone or separatelyand given not less than one month apart. 287.2(e)(c) A person who has received at least three doses of 287.3 tetanus and diphtheria toxoids, with the most recent dose given 287.4 after age six and before age 11, is not required to have 287.5 additional immunization against diphtheria and tetanus until ten 287.6 years have elapsed from the person's most recent dose of tetanus 287.7 and diphtheria toxoid. 287.8(f)(d) The requirement for hepatitis B vaccination shall 287.9 apply to persons enrolling in kindergarten beginning with the 287.10 2000-2001 school term. 287.11(g)(e) The requirement for hepatitis B vaccination shall 287.12 apply to persons enrolling in grade 7 beginning with the 287.13 2001-2002 school term. 287.14 Subd. 11. [COMMISSIONER OF HUMAN SERVICES; CONTINUED 287.15 RESPONSIBILITIES.] Nothing in this section relieves the 287.16 commissioner of human services of the responsibility, under 287.17 chapter 245A, to inspect and assure that statements required by 287.18 this section are on file at child care programs subject to 287.19 licensure. 287.20 Sec. 4. Minnesota Statutes 1998, section 121A.23, 287.21 subdivision 1, is amended to read: 287.22 Subdivision 1. [AIDS PROGRAM.] Each district must have a 287.23 program to prevent and reduce the risk of acquired immune 287.24 deficiency syndrome (AIDS). The commissioner of children, 287.25 families, and learning, in consultation with the commissioner of 287.26 health, shall assist districts in developing and implementing a 287.27 program to prevent and reduce the risk of acquired immune 287.28 deficiency syndrome.Each district must have a program that287.29includes at least:287.30(1) planning materials, guidelines, and other technically287.31accurate and updated information;287.32(2) a comprehensive, technically accurate, and updated287.33curriculum;287.34(3) cooperation and coordination among districts and SCs;287.35(4) a targeting of adolescents, especially those who may be287.36at high risk of contracting AIDS, for prevention efforts;288.1(5) involvement of parents and other community members;288.2(6) in-service training for appropriate district staff and288.3school board members;288.4(7) collaboration with state agencies and organizations288.5having an AIDS prevention or AIDS risk reduction program;288.6(8) collaboration with local community health services,288.7agencies and organizations having an AIDS prevention or AIDS288.8risk reduction program; and288.9(9) participation by state and local student organizations.288.10The department may provide assistance at a neutral site to288.11a nonpublic school participating in a district's program.288.12District programs must not conflict with the health and wellness288.13curriculum developed under Laws 1987, chapter 398, article 5,288.14section 2, subdivision 7.288.15If a district fails to develop and implement a program to288.16prevent and reduce the risk of AIDS, the department must assist288.17the service cooperative in the region serving that district to288.18develop or implement the program.288.19 Sec. 5. Minnesota Statutes 1998, section 121A.26, is 288.20 amended to read: 288.21 121A.26 [SCHOOL PREASSESSMENT TEAMS.] 288.22 Every public school, and every nonpublic school that 288.23 participates in a school district chemical abuse program shall 288.24 establish a chemical abuse preassessment team. The 288.25 preassessment team must be composed of classroom teachers, 288.26 administrators, and to the extent they exist in each school, 288.27 school nurse, school counselor or psychologist, social worker, 288.28 chemical abuse specialist, and other appropriate professional 288.29 staff. The superintendents or their designees shall designate 288.30 the team members in the public schools. The preassessment team 288.31 is responsible for addressing reports of chemical abuse problems 288.32 and making recommendations for appropriate responses to the 288.33 individual reported cases. Districts shall adopt a process for 288.34 addressing reports of chemical abuse problems. 288.35Within 45 days after receiving an individual reported case,288.36the preassessment team shall make a determination whether to289.1provide the student and, in the case of a minor, the student's289.2parents with information about school and community services in289.3connection with chemical abuse. Data may be disclosed without289.4consent in health and safety emergencies pursuant to section289.513.32 and applicable federal law and regulations.289.6Notwithstanding section 138.163, destruction of records289.7identifying individual students shall be governed by this289.8section. If the preassessment team decides not to provide a289.9student and, in the case of a minor, the student's parents with289.10information about school or community services in connection289.11with chemical abuse, records created or maintained by the289.12preassessment team about the student shall be destroyed not289.13later than six months after the determination is made. If the289.14preassessment team decides to provide a student and, in the case289.15of a minor, the student's parents with information about school289.16or community services in connection with chemical abuse, records289.17created or maintained by the preassessment team about the289.18student shall be destroyed not later than six months after the289.19student is no longer enrolled in the district.289.20 Sec. 6. Minnesota Statutes 1998, section 121A.27, is 289.21 amended to read: 289.22 121A.27 [SCHOOL AND COMMUNITY ADVISORY TEAM.] 289.23 The superintendent, with the advice of the school board, 289.24 shall establish a school and community advisory team to address 289.25 chemical abuse problems in the district.The school and289.26community advisory team must be composed of representatives from289.27the school preassessment team established in section 121A.26, to289.28the extent possible, law enforcement agencies, county attorney's289.29office, social service agencies, chemical abuse treatment289.30programs, parents, and the business community. The community289.31advisory team shall:289.32(1) build awareness of the problem within the community,289.33identify available treatment and counseling programs for289.34students and develop good working relationships and enhance289.35communication between the schools and other community agencies;289.36and290.1(2) develop a written procedure clarifying the notification290.2process to be used by the chemical abuse preassessment team290.3established under section 121A.26 when a student is believed to290.4be in possession of or under the influence of alcohol or a290.5controlled substance. The procedure must include contact with290.6the student, and the student's parents or guardian in the case290.7of a minor student.290.8 Sec. 7. Minnesota Statutes 1998, section 121A.28, is 290.9 amended to read: 290.10 121A.28 [LAW ENFORCEMENT RECORDS.] 290.11 A law enforcement agency shall provide notice of any drug 290.12 incident occurring within the agency's jurisdiction, in which 290.13 the agency has probable cause to believe a student violated 290.14 section 152.021, 152.022, 152.023, 152.024, 152.025, 152.027, 290.15 152.097, or 340A.503, subdivision 1, 2, or 3. The notice shall 290.16 be in writing and shall be provided, within two weeks after an 290.17 incident occurs, to thechemical abuse preassessment team in the290.18 school where the student is enrolled. 290.19 Sec. 8. Minnesota Statutes 1998, section 121A.29, 290.20 subdivision 1, is amended to read: 290.21 Subdivision 1. [TEACHER'S DUTY.] A teacher in a nonpublic 290.22 school participating in a school district chemical use program, 290.23 or a public school teacher, who knows or has reason to believe 290.24 that a student is using, possessing, or transferring alcohol or 290.25 a controlled substance while on the school premises or involved 290.26 in school-related activities, shall immediately notify 290.27 theschool's chemical abuse preassessment teamschool of this 290.28 information. A teacher who complies with this section shall be 290.29 defended and indemnified under section 466.07, subdivision 1, in 290.30 any action for damages arising out of the compliance. 290.31 Sec. 9. Minnesota Statutes 1998, section 121A.32, 290.32 subdivision 1, is amended to read: 290.33 Subdivision 1. [REQUIREMENT TO WEAR EYE PROTECTIVE 290.34 DEVICES.] (a) As a condition of enrollment in a course or 290.35 activity, everypersonstudent shall wear industrial quality eye 290.36 protective devices when participating in, observing or 291.1 performing any function in connection with,anycourses or 291.2 activities taking place in eye protection areas, as defined in 291.3 subdivision 3, of anyschool, college, university or other291.4educationalelementary or secondary institution in the state. 291.5 (b) Industrial quality eye protective devices are defined 291.6 as those meeting the standards of the American National 291.7 Standards Institute, currently identified as ANSI 287.1-1968. 291.8 (c) Any student failing to comply with this requirement may 291.9 be temporarily suspended from participation in that activity. 291.10 Repeated failure to comply with this requirement shall result in 291.11 cancellation of the student from the activity or course. 291.12 Sec. 10. Minnesota Statutes 1998, section 121A.34, is 291.13 amended to read: 291.14 121A.34 [SCHOOL SAFETY PATROLS.] 291.15 Subdivision 1. [ESTABLISHMENT.]In the exercise of291.16authorized control and supervision over pupils attending schools291.17and other educational institutions, both public and private,The 291.18 governing board or other directing authority of anysuchschool 291.19 or institution is empowered to authorize the organization and 291.20 supervision of school safety patrols for the purpose of 291.21 influencing and encouraging other pupils to refrain from 291.22 crossing public highways at points other than regular crossings 291.23 and for the purpose of directing pupils when and where to cross 291.24 highways. 291.25 Subd. 2. [APPOINTMENT OF MEMBERS.]Unless the parents or291.26guardian of a pupil object in writing to the school authorities291.27to the appointment of the pupil on a school safety patrol, it is291.28lawful for anyA pupil over nine yearsof age toold may be 291.29 appointedand designated as a member ofto the patrolin any291.30school in which. If there are no pupilswho have attained such291.31ageat least nine years old, then any pupil in the highest grade 291.32thereinin that school may besoappointedand291.33designated. The pupil's parent or guardian may object to the 291.34 appointment in writing to school authorities. School 291.35 authorities may also appoint and designate nonpupil adults as 291.36 members of a school safety patrol on a voluntary or for-hire 292.1 basis. 292.2 Subd. 3. [LIABILITY NOT TO ATTACH.]No liability shall292.3attach either to theA school, educational institution, 292.4 governing board, directing authority, or any individual 292.5 director, board member, superintendent, principal, teacher, or 292.6 other school authority by virtue of the organization, 292.7 maintenance, or operation ofsucha school safety patrol shall 292.8 not be liable because of injuries sustained by any pupil, 292.9 whether a member of the patrol or otherwiseby reason ofdue to 292.10 the operation and maintenance of the patrol. 292.11 Subd. 4. [IDENTIFY, OPERATION.] Identification and 292.12 operation of school safety patrols shall be uniform throughout 292.13 the state and the method of identification and signals to be 292.14 used shall be as prescribed by the commissioner of public 292.15 safety.School safety patrol members may wear fluorescent292.16reflective vests.292.17 Sec. 11. Minnesota Statutes 1998, section 121A.55, is 292.18 amended to read: 292.19 121A.55 [POLICIES TO BE ESTABLISHED.] 292.20 (a) The commissioner of children, families, and learning 292.21 shall promulgate guidelines to assist each school board. Each 292.22 school board shall establish uniform criteria for dismissal and 292.23 adopt written policies and rules to effectuate the purposes of 292.24 sections 121A.40 to 121A.56. The policies shall emphasize 292.25 preventing dismissals through early detection of problems and 292.26 shall be designed to address students' inappropriate behavior 292.27 from recurring. The policies shall recognize the continuing 292.28 responsibility of the school for the education of the pupil 292.29 during the dismissal period. The alternative educational 292.30 services, if the pupil wishes to take advantage of them, must be 292.31 adequate to allow the pupil to make progress towards meeting the 292.32 graduation standards adopted under section 120B.02 and help 292.33 prepare the pupil for readmission. 292.34 (b) An area learning center under section 123A.05 may not 292.35 prohibit an expelled or excluded pupil from enrolling solely 292.36 because a district expelled or excluded the pupil. The board of 293.1 the area learning center may use the provisions of the Pupil 293.2 Fair Dismissal Act to exclude a pupil or to require an admission 293.3 plan. 293.4(c) The commissioner shall actively encourage and assist293.5school districts to cooperatively establish alternative293.6educational services within school buildings or at alternative293.7program sites that offer instruction to pupils who are dismissed293.8from school for willfully engaging in dangerous, disruptive, or293.9violent behavior, including for possessing a firearm in a school293.10zone.293.11 Sec. 12. Minnesota Statutes 1998, section 121A.69, 293.12 subdivision 3, is amended to read: 293.13 Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall 293.14 adopt a written policy governing student or staff hazing. The 293.15 policy must apply to student behavior that occurs on or off 293.16 school property and during and after school hours.The policy293.17must include reporting procedures and disciplinary consequences293.18for violating the policy. Disciplinary consequences must be293.19sufficiently severe to deter violations and appropriately293.20discipline prohibited behavior. Disciplinary consequences must293.21conform with sections 121A.41 to 121A.56. Each school must293.22include the policy in the student handbook on school policies.293.23 Sec. 13. [REPEALER.] 293.24 Minnesota Statutes 1998, sections 121A.03, subdivision 3; 293.25 121A.11, subdivision 2; 121A.16; 121A.23, subdivision 2; 293.26 121A.32, subdivisions 2, 4, and 5; and 121A.41, subdivision 3, 293.27 are repealed. 293.28 ARTICLE 13 293.29 TEACHERS AND OTHER EDUCATORS 293.30 Section 1. Minnesota Statutes 1998, section 122A.09, 293.31 subdivision 6, is amended to read: 293.32 Subd. 6. [REGISTER OF PERSONS LICENSED.] The executive 293.33 secretary of the board of teaching shall keep a record of the 293.34 proceedings of and a register of all persons licensed pursuant 293.35 to the provisions of this chapter.The register must show the293.36name, address, license number and the renewal of the license.294.1The board must on July 1, of each year or as soon thereafter as294.2is practicable, compile a list of such duly licensed teachers294.3and transmit a copy of the list to the board.A copy of the 294.4 register must be available during business hours at the office 294.5 of the board to any interested person. 294.6 Sec. 2. Minnesota Statutes 1998, section 122A.15, is 294.7 amended to read: 294.8 122A.15 [TEACHERS, SUPERVISORY AND SUPPORT PERSONNEL, 294.9 DEFINITIONS, LICENSURE.] 294.10 Subdivision 1. [TEACHERS.] The term "teachers" for the 294.11 purpose of licensure, means all persons employed in a public 294.12 school or education district or by a service cooperative as 294.13 members of the instructional, supervisory, and support staff 294.14 including superintendents, principals, supervisors, secondary 294.15 vocational and other classroom teachers, librarians, counselors, 294.16 school psychologists, school nurses, school social workers, 294.17 audio-visual directors and coordinators, recreation personnel, 294.18 media generalists, media supervisors, andspeech therapists294.19 educational speech-language pathologists. 294.20 Subd. 2. [SUPERVISORY PERSONNEL.] "Supervisory personnel" 294.21 for the purpose of licensure means superintendents, principals, 294.22 and professional employees who devote 50 percent or more of 294.23 their time to administrative or supervisory duties over other 294.24 personnel, and includes athletic coaches. 294.25 Sec. 3. Minnesota Statutes 1998, section 122A.22, is 294.26 amended to read: 294.27 122A.22 [DISTRICT RECORDING OF TEACHER LICENSES.] 294.28 No person shall be accounted a qualified teacher until the 294.29 person has filed for record with the district superintendent 294.30 where the person intends to teach a license, or certified copy 294.31 of a license, authorizing the person to teachschool in the294.32district school system. 294.33 Sec. 4. Minnesota Statutes 1998, section 122A.40, 294.34 subdivision 3, is amended to read: 294.35 Subd. 3. [HIRING, DISMISSING.] School boards must hire or 294.36 dismiss teachers atdulyappropriately called meetings.Where a295.1husband and wife, brother and sister, or two brothers or295.2sisters, constitute a quorum, no contract employing a teacher295.3shall be made or authorized except upon the unanimous vote of295.4the full board. A teacher related by blood or marriage, within295.5the fourth degree, computed by the civil law, to a board member295.6shall not be employed except by a unanimous vote of the full295.7board.The initial employment of the teacher in the district 295.8 must be by written contract, signed by the teacher and by the 295.9 chair and clerk. All subsequent employment of the teacher in 295.10 the district must be by written contract, signed by the teacher 295.11 and by the chair and clerk, except where there is a master 295.12 agreement covering the employment of the teacher. Contracts for 295.13 teaching or supervision of teaching can be made only with 295.14 qualified teachers.A teacher shall not be required to reside295.15within the employing district as a condition to teaching295.16employment or continued teaching employment.295.17 Sec. 5. Minnesota Statutes 1998, section 122A.40, 295.18 subdivision 5, is amended to read: 295.19 Subd. 5. [PROBATIONARY PERIOD.] The first three 295.20 consecutive years of a teacher's first teaching experience in 295.21 Minnesota in a single district is deemed to be a probationary 295.22 period of employment, and after completion thereof, the 295.23 probationary period in each district in which the teacher is 295.24 thereafter employed shall be one year. The school board must 295.25 adopt a plan for written evaluation of teachers during the 295.26 probationary period. Evaluation must occur at least three times 295.27 each year for a teacher performing services on 120 or more 295.28 school days, at least two times each year for a teacher 295.29 performing services on 60 to 119 school days, and at least one 295.30 time each year for a teacher performing services on fewer than 295.31 60 school days. Days devoted to parent-teacher conferences, 295.32 teachers' workshops, and other staff development opportunities 295.33 and days on which a teacher is absent from school must not be 295.34 included in determining the number of school days on which a 295.35 teacher performs services. During the probationary period any 295.36 annual contract with any teacher may or may not be renewed as 296.1 the school board shall see fit.However,The board must give 296.2 anysuchprobationary teacher whose contract it declines to 296.3 renew for the following school year written notice to that 296.4 effect before June 1. If the teacher requests reasons for any 296.5 nonrenewal of a teaching contract, the board must give the 296.6 teacher its reason in writing, including a statement that 296.7 appropriate supervision was furnished describing the nature and 296.8 the extent of such supervision furnished the teacher during the 296.9 employment by the board, within ten days after receiving such 296.10 request. The school board may, after a hearing held upon due 296.11 notice, discharge a teacher during the probationary period for 296.12 cause, effective immediately, under section 122A.44. 296.13 Sec. 6. Minnesota Statutes 1998, section 122A.40, 296.14 subdivision 8, is amended to read: 296.15 Subd. 8. [PEER REVIEW FORCONTINUING CONTRACTTEACHERS.] A 296.16 school board and an exclusive representative of the teachers in 296.17 the district shall develop a peer review process for continuing 296.18 contract teachers and probationary teachers through joint 296.19 agreement. 296.20 Sec. 7. Minnesota Statutes 1998, section 122A.40, 296.21 subdivision 10, is amended to read: 296.22 Subd. 10. [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 296.23 school board and the exclusive bargaining representative of the 296.24 teachers may negotiate a plan providing for unrequested leave of 296.25 absence without pay or fringe benefits for as many teachers as 296.26 may be necessary because of discontinuance of position, lack of 296.27 pupils, financial limitations, or merger of classes caused by 296.28 consolidation of districts.Failing to successfully negotiate296.29such a plan, the provisions of subdivision 11 shall apply. The296.30negotiated plan must not include provisions which would result296.31in the exercise of seniority by a teacher holding a provisional296.32license, other than a vocational education license, contrary to296.33the provisions of subdivision 11, clause (c), or the296.34reinstatement of a teacher holding a provisional license, other296.35than a vocational education license, contrary to the provisions296.36of subdivision 11, clause (e).The provisions of section 297.1 179A.16 do not apply for the purposes of this subdivision. 297.2 Sec. 8. Minnesota Statutes 1998, section 122A.40, 297.3 subdivision 19, is amended to read: 297.4 Subd. 19. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 297.5 EXPUNGEMENT.] All evaluations and files generated within a 297.6 school district relating to each individual teacher must be 297.7 available to each individual teacher upon written request. 297.8 Effective January 1, 1976, all evaluations and files, wherever 297.9 generated, relating to each individual teacher must be available 297.10 to each individual teacher upon written request. The teacher 297.11 shall have the right to reproduce any of the contents of the 297.12 filesat the teacher's expenseand to submit for inclusion in 297.13 the file written information in response to any material 297.14 contained therein. 297.15 A district may destroy the files as provided by law and 297.16 must expunge from the teacher's file any material found to be 297.17 false or inaccurate through the grievance procedure required 297.18 pursuant to section 179A.20, subdivision 4. The grievance 297.19 procedure promulgated by the director of the bureau of mediation 297.20 services, pursuant to section 179A.04, subdivision 3, clause 297.21 (h), applies to those principals and supervisory employees not 297.22 included in an appropriate unit as defined in section 179A.03. 297.23 Expungement proceedings must be commenced within the time period 297.24 provided in the collective bargaining agreement for the 297.25 commencement of a grievance. If no time period is provided in 297.26 the bargaining agreement, the expungement proceedings must 297.27 commence within 15 days after the teacher has knowledge of the 297.28 inclusion in the teacher's file of the material the teacher 297.29 seeks to have expunged. 297.30 Sec. 9. Minnesota Statutes 1998, section 122A.41, 297.31 subdivision 15, is amended to read: 297.32 Subd. 15. [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 297.33 EXPUNGEMENT.] All evaluations and files generated within a 297.34 district relating to each individual teacher must be available 297.35 to each individual teacher upon the teacher's written request. 297.36 Effective January 1, 1976, all evaluations and files, wherever 298.1 generated, relating to each individual teacher must be available 298.2 to each individual teacher upon the teacher's written request. 298.3 The teacher has the right to reproduce any of the contents of 298.4 the filesat the teacher's expenseand to submit for inclusion 298.5 in the file written information in response to any material 298.6 contained therein. 298.7 A district may destroy the files as provided by law and 298.8 must expunge from the teacher's file any material found to be 298.9 false or substantially inaccurate through the grievance 298.10 procedure required pursuant to section 179A.20, subdivision 4. 298.11 The grievance procedure promulgated by the director of the 298.12 bureau of mediation services, pursuant to section 179A.04, 298.13 subdivision 3, clause (h), applies to those principals and 298.14 supervisory employees not included in an appropriate unit as 298.15 defined in section 179A.03. Expungement proceedings must be 298.16 commenced within the time period provided in the collective 298.17 bargaining agreement for the commencement of a grievance. If no 298.18 time period is provided in the bargaining agreement, the 298.19 expungement proceedings must commence within 15 days after the 298.20 teacher has knowledge of the inclusion in the teacher's file of 298.21 the material the teacher seeks to have expunged. 298.22 Sec. 10. [122A.455] [TEACHER CONTRACTS.] 298.23 The school board and the exclusive bargaining 298.24 representative of the teachers must negotiate, if applicable: 298.25 (1) short-term, limited contracts; 298.26 (2) summer school contracts; 298.27 (3) sabbatical leave; 298.28 (4) faculty and staff exchange programs; and 298.29 (5) temporary assignments. 298.30 After May 17, 1999, no independent school district shall 298.31 enter into a collective bargaining agreement with the exclusive 298.32 bargaining representative of the teachers that does not include 298.33 a plan providing for an unrequested leave of absence for 298.34 teachers. 298.35 Sec. 11. Minnesota Statutes 1998, section 122A.51, is 298.36 amended to read: 299.1 122A.51 [TEACHER LUNCH PERIOD.] 299.2 A teacher must be provided with a duty-free lunch period, 299.3 scheduled according toschool board policy ornegotiated 299.4 agreement. 299.5 Sec. 12. Minnesota Statutes 1998, section 122A.58, 299.6 subdivision 1, is amended to read: 299.7 Subdivision 1. [TERMINATION; HEARING.] Before a district 299.8 terminates the coaching duties of an employee who isrequired to299.9hold a license as an athletic coach from the state board of299.10educationa head varsity coach of an interscholastic sport at 299.11 the secondary school level, the district must notify the 299.12 employee in writing and state its reason for the proposed 299.13 termination. Within 14 days of receiving this notification, the 299.14 employee may request in writing a hearing on the termination 299.15 before the board. If a hearing is requested, the board must 299.16 hold a hearing within 25 days according to the hearing 299.17 procedures specified in section 122A.40, subdivision 14, and the 299.18 termination is final upon the order of the board after the 299.19 hearing. 299.20 Sec. 13. Minnesota Statutes 1998, section 122A.60, 299.21 subdivision 1, is amended to read: 299.22 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 299.23 board must use the revenue authorized in section 122A.61 for 299.24 in-service education for programs under section 120B.22, 299.25subdivision 2,or for staff development plans under this 299.26 section. The board must establish a staff development committee 299.27 to develop the plan, assist site decision-making teams in 299.28 developing a site plan consistent with the goals of the plan, 299.29 and evaluate staff development efforts at the site level. A 299.30 majority of the advisory committee must be teachers representing 299.31 various grade levels, subject areas, and special education. The 299.32 advisory committee must also include nonteaching staff, parents, 299.33 and administrators. Districts must report staff development 299.34results andexpenditures to the commissioner in the form and 299.35 manner determined by the commissioner. The expenditure report 299.36 must include expenditures by the board for district level 300.1 activities and expenditures made by the staff. The report must 300.2 provide a breakdown of expenditures for (1) curriculum 300.3 development and programs, (2) in-service education, workshops, 300.4 and conferences, and (3) the cost of teachers or substitute 300.5 teachers for staff development purposes. Within each of these 300.6 categories, the report must also indicate whether the 300.7 expenditures were incurred at the district level or the school 300.8 site level, and whether the school site expenditures were made 300.9 possible by the grants to school sites that demonstrate 300.10 exemplary use of allocated staff development revenue. These 300.11 expenditures are to be reported using the UFARS system. The 300.12 commissioner shall report the staff development expenditure data 300.13 to the education committees of the legislature by February 15 300.14 each year. 300.15 Sec. 14. Minnesota Statutes 1998, section 122A.68, 300.16 subdivision 1, is amended to read: 300.17 Subdivision 1. [ESTABLISHMENT.] A school district with a 300.18 teaching residency plan approved by the board of teaching may 300.19 hire graduates of approved Minnesota teacher preparation 300.20 programs as teaching residents. A district shall employ each 300.21 resident for one school year. The district and the resident may 300.22 agree to extend the residency for one additional school year. A 300.23 school may employ no more than one teaching resident for every 300.24 eight full-time equivalent licensed teachers.No more than 600300.25eligible teachers may be employed as teacher residents in any300.26one school year.300.27 Sec. 15. Minnesota Statutes 1998, section 122A.68, 300.28 subdivision 7, is amended to read: 300.29 Subd. 7. [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] The 300.30 board of teaching mustdevelopmaintain for teachers of students 300.31 in prekindergarten through grade 12, model teaching residency 300.32 outcomes and assessments, and mentoring programs. 300.33 Sec. 16. Minnesota Statutes 1998, section 122A.69, is 300.34 amended to read: 300.35 122A.69 [PRACTICE ORSTUDENT TEACHERS.] 300.36 The board may, by agreements with teacher preparing 301.1 institutions, arrange for classroom experience in the district 301.2 forpractice orstudent teachers who have completed not less 301.3 than two years of an approved teacher education program.Such301.4practiceStudent teachers must be provided with appropriate 301.5 supervision by a fully qualified teacher under rules promulgated 301.6 by the board.PracticeStudent teachers are deemed employees of 301.7 the school district in which they are rendering services for 301.8 purposes of workers' compensation; liability insurance, if 301.9 provided for other district employees in accordance with section 301.10 123B.23; and legal counsel in accordance with the provisions of 301.11 section 123B.25. 301.12 Sec. 17. Minnesota Statutes 1998, section 122A.70, 301.13 subdivision 2, is amended to read: 301.14 Subd. 2. [APPLICATIONS.] The board of teaching must make 301.15 application forms available to sites interested in developing or 301.16 expanding a mentorship program. A school district, a group of 301.17 school districts, or a coalition of districts, teachers and 301.18 teacher education institutions may apply for a teacher 301.19 mentorship program grant. The board of teaching, in301.20consultation with the teacher mentoring task force,must approve 301.21 or disapprove the applications. To the extent possible, the 301.22 approved applications must reflect effective mentoring 301.23 components, include a variety of coalitions and be 301.24 geographically distributed throughout the state. The board of 301.25 teaching must encourage the selected sites to consider the use 301.26 of its assessment procedures. 301.27 Sec. 18. Minnesota Statutes 1998, section 122A.91, is 301.28 amended to read: 301.29 122A.91 [DESIGNATED STATE OFFICIAL.] 301.30 For the purposes of the agreement set forth in section 301.31 122A.90, the designated state official for this state is the 301.32commissioner of children, families, and learningexecutive 301.33 secretary of the board of teaching. 301.34 Sec. 19. Minnesota Statutes 1998, section 122A.92, is 301.35 amended to read: 301.36 122A.92 [RECORD OF CONTRACTS.] 302.1 Two copies of all contracts made on behalf of this state 302.2 pursuant to the agreement set forth in section 122A.90 must be 302.3 kept on file in the office of thecommissioner of children,302.4families, and learningboard of teaching. 302.5 Sec. 20. [REVISOR INSTRUCTION.] 302.6 In the next and subsequent editions of Minnesota Statutes 302.7 and Minnesota Rules, the revisor of statutes shall renumber 302.8 Minnesota Statutes, section 122A.61, subdivision 2, as Minnesota 302.9 Statutes, section 124D.311. The revisor shall also make 302.10 necessary cross-reference changes consistent with the 302.11 renumbering. 302.12 Sec. 21. [REPEALER.] 302.13 Minnesota Statutes 1998, sections 122A.162; 122A.19, 302.14 subdivision 2; 122A.32; 122A.33; 122A.40, subdivision 6; 302.15 122A.42; 122A.43, subdivisions 1, 2, 3, 4, and 6; 122A.45; 302.16 122A.49; 122A.52; 122A.53; 122A.54; 122A.55; 122A.56; 122A.57; 302.17 122A.71; 122A.72; and 122A.75, are repealed. 302.18 ARTICLE 14 302.19 SCHOOL DISTRICTS; FORMS FOR ORGANIZING 302.20 Section 1. [REPEALER.] 302.21 Minnesota Statutes 1998, sections 123A.06, subdivision 3; 302.22 123A.07; and 123A.15, subdivision 1, are repealed. 302.23 ARTICLE 15 302.24 SCHOOL DISTRICT POWERS AND DUTIES 302.25 Section 1. Minnesota Statutes 1998, section 123B.02, 302.26 subdivision 1, is amended to read: 302.27 Subdivision 1. [BOARD AUTHORITY.] The board must have the 302.28 general charge of the business of the district, the school 302.29 houses, and of the interests of the schools thereof. The 302.30 board's authority to govern, manage, and control the district, 302.31 to carry out its duties and responsibilities, and to conduct the 302.32 business of the district includes implied powers in addition to 302.33 any specific powers granted by the legislature. 302.34 Sec. 2. Minnesota Statutes 1998, section 123B.02, 302.35 subdivision 2, is amended to read: 302.36 Subd. 2. [FACILITIES FOR SCHOOL-AGE CHILDREN.] It is the 303.1 duty and the function of the district to furnish school 303.2 facilities to every child of school age residing in any part of 303.3 the district. The board may establish and organize and alter 303.4 and discontinue such grades or schools as it may deem advisable 303.5 and assign to each school and grade a proper number of pupils. 303.6The board shall provide free textbooks for the pupils of the303.7district.303.8 Sec. 3. Minnesota Statutes 1998, section 123B.02, 303.9 subdivision 3, is amended to read: 303.10 Subd. 3. [LIMITATION ON PARTICIPATION AND FINANCIAL 303.11 SUPPORT.] (a) A district must not be required by any type of 303.12 formal or informal agreement except an agreement to provide 303.13 building space according to paragraph (f), including a joint 303.14 powers agreement, or membership in any cooperative unit defined 303.15 in section 123A.24, subdivision 2, to participate in or provide 303.16 financial support for the purposes of the agreement for a time 303.17 period in excess of four fiscal years, or the time period set 303.18 forth in this subdivision. Any agreement, part of an agreement, 303.19 or other type of requirement to the contrary is void. 303.20 (b) This subdivision shall not affect the continued 303.21 liability of a district for its share of bonded indebtedness or 303.22 other debt incurred as a result of any agreement before July 1, 303.23 1993. The district is liable only until the obligation or debt 303.24 is discharged and only according to the payment schedule in 303.25 effect on July 1, 1993, except that the payment schedule may be 303.26 altered for the purpose of restructuring debt or refunding bonds 303.27 outstanding on July 1, 1993, if the annual payments of the 303.28 district are not increased and if the total obligation of the 303.29 school district for its share of outstanding bonds or other debt 303.30 is not increased. 303.31 (c) To cease participating in or providing financial 303.32 support for any of the services or activities relating to the 303.33 agreement or to terminate participation in the agreement, the 303.34 board must adopt a resolution and notify other parties to the 303.35 agreement of its decision on or before February 1 of any year. 303.36 The cessation or withdrawal shall be effective June 30 of the 304.1 same year except that for a member of an education district 304.2 organized under sections 123A.15 to 123A.19 or an intermediate 304.3 district organized under chapter 136D, cessation or withdrawal 304.4 shall be effective June 30 of the following fiscal year. At the 304.5 option of the board, cessation or withdrawal may be effective 304.6 June 30 of the following fiscal year for a district 304.7 participating in any type of agreement. 304.8 (d) Before issuing bonds or incurring other debt, the 304.9 governing body responsible for implementing the agreement must 304.10 adopt a resolution proposing to issue bonds or incur other debt 304.11 and the proposed financial effect of the bonds or other debt 304.12 upon each participating district. The resolution must be 304.13 adopted within a time sufficient to allow the board to adopt a 304.14 resolution within the time permitted by this paragraph and to 304.15 comply with the statutory deadlines set forth in sections 304.16 122A.40, 122A.41, and 123A.33. The governing body responsible 304.17 for implementing the agreement shall notify each participating 304.18 board of the contents of the resolution. Within 120 days of 304.19 receiving the resolution of the governing body, the school board 304.20 of the participating district shall adopt a resolution stating: 304.21 (1) its concurrence with issuing bonds or incurring other 304.22 debt; 304.23 (2) its intention to cease participating in or providing 304.24 financial support for the service or activity related to the 304.25 bonds or other debt; or 304.26 (3) its intention to terminate participation in the 304.27 agreement. 304.28 A board adopting a resolution according to clause (1) is 304.29 liable for its share of bonded indebtedness or other debt as 304.30 proposed by the governing body implementing the agreement. A 304.31 school board adopting a resolution according to clause (2) is 304.32 not liable for the bonded indebtedness or other debt, as 304.33 proposed by the governing body, related to the services or 304.34 activities in which the district ceases participating or 304.35 providing financial support. A board adopting a resolution 304.36 according to clause (3) is not liable for the bonded 305.1 indebtedness or other debt proposed by the governing body 305.2 implementing the agreement. 305.3 (e)After July 1, 1993,A district is liable according to 305.4 paragraph (d) for its share of bonded indebtedness or other debt 305.5 incurred by the governing body implementing the agreement to the 305.6 extent that the bonds or other debt are directly related to the 305.7 services or activities in which the district participates or for 305.8 which the district provides financial support. The district has 305.9 continued liability only until the obligation or debt is 305.10 discharged and only according to the payment schedule in effect 305.11 at the time the governing body implementing the agreement 305.12 provides notice to the school board, except that the payment 305.13 schedule may be altered for the purpose of refunding the 305.14 outstanding bonds or restructuring other debt if the annual 305.15 payments of the district are not increased and if the total 305.16 obligation of the district for the outstanding bonds or other 305.17 debt is not increased. 305.18 (f) A district that is a member of a cooperative unit as 305.19 defined in section 123A.24, subdivision 2, may obligate itself 305.20 to participate in and provide financial support for an agreement 305.21 with a cooperative unit to provide school building space for a 305.22 term not to exceed two years with an option on the part of the 305.23 district to renew for an additional two years. 305.24 (g) Notwithstanding any limitations imposed under this 305.25 subdivision, a school district may, according to section 305.26 123B.51, subdivision 4, enter into a lease of all or a portion 305.27 of a schoolhouse that is not needed for school purposes, 305.28 including, but not limited to, a lease with a term of more than 305.29 one year. 305.30 Sec. 4. Minnesota Statutes 1998, section 123B.04, 305.31 subdivision 2, is amended to read: 305.32 Subd. 2. [AGREEMENT.] (a) Either the school board or 305.33 theschoolsite decision-making team may request that the school 305.34 board enter into an agreement with aschoolsite decision-making 305.35 team concerning the governance, management, or control of the 305.36 school.A school site decision-making team may include the306.1school principal, teachers in the school or their designee,306.2other employees in the school, parents of pupils in the school,306.3representatives of pupils in the school, or other members in the306.4community. The school site decision-making team shall include306.5the school principal or other person having general control and306.6supervision of the school.A school district must provide 306.7 notice to parents about site decision-making teams and inform 306.8 parents about how to be involved with the site decision-making 306.9 team. The site decision-making team must reflect the diversity 306.10 of the student body of the education site. No more than 306.11 one-half of the members shall be employees of the district. 306.12 (b) School site decision-making agreements must delegate 306.13 powers, duties, and broad management responsibilities to site 306.14 teams and involve staff members, students as appropriate, and 306.15 parents in decision making. 306.16(c) An agreement shall include a statement of powers,306.17duties, responsibilities, and authority to be delegated to and306.18within the site.306.19(d) An agreement may include:306.20(1) an achievement contract according to subdivision 4;306.21(2) a mechanism to allow principals, or other persons306.22having general control and supervision of the school, to make306.23decisions regarding how financial and personnel resources are306.24best allocated at the site and from whom goods or services are306.25purchased;306.26(3) a mechanism to implement parental involvement programs306.27under section 124D.895 and to provide for effective parental306.28communication and feedback on this involvement at the site306.29level;306.30(4) a provision that would allow the team to determine who306.31is hired into licensed and nonlicensed positions;306.32(5) a provision that would allow teachers to choose the306.33principal or other person having general control;306.34(6) an amount of revenue allocated to the site under306.35subdivision 3; and306.36(7) any other powers and duties determined appropriate by307.1the board.307.2The school board of the district remains the legal employer307.3under clauses (4) and (5).307.4(e) Any powers or duties not delegated to the school site307.5management team in the school site management agreement shall307.6remain with the school board.307.7(f) Approved agreements shall be filed with the307.8commissioner. If a school board denies a request to enter into307.9a school site management agreement, it shall provide a copy of307.10the request and the reasons for its denial to the commissioner.307.11 Sec. 5. Minnesota Statutes 1998, section 123B.04, 307.12 subdivision 5, is amended to read: 307.13 Subd. 5. [COMMISSIONER'S ROLE.] The commissioner of 307.14 children, families, and learning, in consultation with 307.15 appropriate educational organizations, shall:, 307.16(1)upon request, provide technical support for districts 307.17 and sites with agreements under this section;307.18(2) conduct and compile research on the effectiveness of307.19site decision making; and307.20(3) periodically report on and evaluate the effectiveness307.21of site management agreements on a statewide basis. 307.22 Sec. 6. Minnesota Statutes 1998, section 123B.09, 307.23 subdivision 8, is amended to read: 307.24 Subd. 8. [DUTIES.] The board must superintend and manage 307.25 the schools of the district; adopt rules for their organization, 307.26 government, and instruction; keep registers; and prescribe 307.27 textbooks and courses of study.The board may enter into an307.28agreement with a post-secondary institution for secondary or307.29post-secondary nonsectarian courses to be taught at a secondary307.30school, nonsectarian post-secondary institution, or another307.31location.307.32 Sec. 7. Minnesota Statutes 1998, section 123B.143, 307.33 subdivision 1, is amended to read: 307.34 Subdivision 1. [CONTRACT; DUTIES.] All districts 307.35 maintaining a classified secondary school must employ a 307.36 superintendent who shall be an ex officio nonvoting member of 308.1 the school board. The authority for selection and employment of 308.2 a superintendent must be vested in the board in all cases. An 308.3 individual employed by a board as a superintendent shall have an 308.4 initial employment contract for a period of time no longer than 308.5 three years from the date of employment. Any subsequent 308.6 employment contract must not exceed a period of three years. A 308.7 board, at its discretion, may or may not renew an employment 308.8 contract. A board must not, by action or inaction, extend the 308.9 duration of an existing employment contract. Beginning 365 days 308.10 prior to the expiration date of an existing employment contract, 308.11 a board may negotiate and enter into a subsequent employment 308.12 contract to take effect upon the expiration of the existing 308.13 contract. A subsequent contract must be contingent upon the 308.14 employee completing the terms of an existing contract. If a 308.15 contract between a board and a superintendent is terminated 308.16 prior to the date specified in the contract, the board may not 308.17 enter into another superintendent contract with that same 308.18 individual that has a term that extends beyond the date 308.19 specified in the terminated contract. A board may terminate a 308.20 superintendent during the term of an employment contract for any 308.21 of the grounds specified in section 122A.40, subdivision 9 or 13. 308.22 A superintendent shall not rely upon an employment contract with 308.23 a board to assert any other continuing contract rights in the 308.24 position of superintendent under section 122A.40. 308.25 Notwithstanding the provisions of sections 122A.40, subdivision 308.26 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 308.27 individual shall have a right to employment as a superintendent 308.28 based on order of employment in any district. If two or more 308.29 districts enter into an agreement for the purchase or sharing of 308.30 the services of a superintendent, the contracting districts have 308.31 the absolute right to select one of the individuals employed to 308.32 serve as superintendent in one of the contracting districts and 308.33 no individual has a right to employment as the superintendent to 308.34 provide all or part of the services based on order of employment 308.35 in a contracting district. The superintendent of a district 308.36 shall perform the following: 309.1 (1)visit and supervise the schools in the district, report309.2and make recommendations about their condition when advisable or309.3on request by the board;309.4(2) recommend to the board employment and dismissal of309.5teachers;309.6(3) superintend school grading practices and examinations309.7for promotions;309.8(4)make reports required by the commissioner; 309.9(5)(2) by January 10, submit an annual report to the 309.10 commissioner in a manner prescribed by the commissioner, in 309.11 consultation with school districts, identifying the expenditures 309.12 that the district requires to ensure an 80 percent and a 90 309.13 percent student passage rate on the basic standards test taken 309.14 in the eighth grade, identifying the amount of expenditures that 309.15 the district requires to ensure a 99 percent student passage 309.16 rate on the basic standards test by 12th grade, and how much the 309.17 district is cross-subsidizing programs with special education, 309.18 compensatory, and general education revenue; and 309.19(6)(3) perform other duties prescribed by the board. 309.20 Sec. 8. Minnesota Statutes 1998, section 123B.36, 309.21 subdivision 1, is amended to read: 309.22 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] A school 309.23 board is authorized to require payment of fees in the following 309.24 areas: 309.25 (1) in any program where the resultant product, in excess 309.26 of minimum requirements and at the pupil's option, becomes the 309.27 personal property of the pupil; 309.28 (2) admission fees or charges for extra curricular 309.29 activities, where attendance is optional and where the admission 309.30 fees or charges a student must pay to attend or participate in 309.31 an extracurricular activity is the same for all students, 309.32 regardless of whether the student is enrolled in a public or a 309.33 home school; 309.34 (3) a security deposit for the return of materials, 309.35 supplies, or equipment; 309.36 (4) personal physical education and athletic equipment and 310.1 apparel, although any pupil may personally provide it if it 310.2 meets reasonable requirements and standards relating to health 310.3 and safety established by the board; 310.4 (5) items of personal use or products that a student has an 310.5 option to purchase such as student publications, class rings, 310.6 annuals, and graduation announcements; 310.7 (6) fees specifically permitted by any other statute, 310.8 including but not limited to section 171.05, subdivision 2; 310.9 provided (i) driver education fees do not exceed the actual cost 310.10 to the school and school district of providing driver education, 310.11 and (ii) the driver education courses are open to enrollment to 310.12 persons between the ages of 15 and 18 who reside or attend 310.13 school in the school district; 310.14 (7) field trips considered supplementary to a district 310.15 educational program; 310.16 (8) any authorized voluntary student health and accident 310.17 benefit plan; 310.18 (9) for the use of musical instruments owned or rented by 310.19 the district, a reasonable rental fee not to exceed either the 310.20 rental cost to the district or the annual depreciation plus the 310.21 actual annual maintenance cost for each instrument; 310.22 (10) transportation of pupils to and from extra curricular 310.23 activities conducted at locations other than school, where 310.24 attendance is optional; 310.25 (11) transportation of pupils to and from school for which 310.26 aid for fiscal year 1996 is not authorized under Minnesota 310.27 Statutes 1994, section 124.223, subdivision 1, and for which 310.28 levy for fiscal year 1996 is not authorized under Minnesota 310.29 Statutes 1994, section 124.226, subdivision 5, if a district 310.30 charging fees for transportation of pupils establishes 310.31 guidelines for that transportation to ensure that no pupil is 310.32 denied transportation solely because of inability to pay; 310.33 (12)motorcyclevehicle safety classroom education courses 310.34 conducted outside of regular school hours; provided the charge 310.35 must not exceed the actual cost of these courses to the school 310.36 district; 311.1 (13) transportation to and from post-secondary institutions 311.2 for pupils enrolled under the post-secondary enrollment options 311.3 program under section 123B.88, subdivision 22. Fees collected 311.4 for this service must be reasonable and must be used to reduce 311.5 the cost of operating the route. Families who qualify for 311.6 mileage reimbursement under section 124D.09, subdivision 22, may 311.7 use their state mileage reimbursement to pay this fee. If no 311.8 fee is charged, districts must allocate costs based on the 311.9 number of pupils riding the route; and 311.10 (14) admission fees or charges to a part-time student who 311.11 is over the age of 21 or who has graduated from high school for 311.12 attending a class or a program at a secondary school. 311.13 Sec. 9. Minnesota Statutes 1998, section 123B.43, is 311.14 amended to read: 311.15 123B.43 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 311.16 (a) The commissioner shall assure that textbooks and 311.17 individualized instructional materials loaned to nonpublic 311.18 school pupils are secular, neutral, nonideological and that they 311.19 are incapable of diversion for religious use. 311.20 (b) Textbooks and individualized instructional materials 311.21 must not be used in religious courses, devotional exercises, 311.22 religious training or any other religious activity. 311.23 (c) Textbooks and individualized instructional materials 311.24 must be loaned only to individual pupils upon the request of a 311.25 parent or guardian or the pupil on a form designated for this 311.26 use by the commissioner. The request forms shall provide for 311.27 verification by the parent or guardian or pupil that the 311.28 requested textbooks and individualized instructional materials 311.29 are for the use of the individual pupil in connection with a 311.30 program of instruction in the pupil's elementary or secondary 311.31 school. 311.32(d) The servicing school district or the intermediary311.33service area must take adequate measures to ensure an accurate311.34and periodic inventory of all textbooks and individualized311.35instructional materials loaned to elementary and secondary311.36school pupils attending nonpublic schools. The state board of312.1education shall promulgate rules under the provisions of chapter312.214 to terminate the eligibility of any nonpublic school pupil if312.3the commissioner determines, after notice and opportunity for312.4hearing, that the textbooks or individualized instructional312.5materials have been used in a manner contrary to the provisions312.6of section 123B.41, subdivision 5, 123B.42, or this section or312.7any rules promulgated by the state board of education.312.8(e) Nothing contained in section 123B.41, subdivision 5,312.9123B.42, or this section shall be construed to authorize the312.10making of any payments to a nonpublic school or its faculty,312.11staff or administrators for religious worship or instruction or312.12for any other purpose.312.13 Sec. 10. Minnesota Statutes 1998, section 123B.445, is 312.14 amended to read: 312.15 123B.445 [NONPUBLIC EDUCATION COUNCIL.] 312.16 (a) The commissioner shall appoint a 15-member council on 312.17 nonpublic education, with the advice and consent of the senate. 312.18 The 15 members shall represent various areas of the state, 312.19 represent various methods of providing nonpublic education, and 312.20 shall be knowledgeable about nonpublic education. The 312.21 compensation, removal of members, filling of vacancies, and 312.22 terms are governed by section 15.0575. The council shall not 312.23 expire. Thecouncillcouncil shall advise the commissioner and 312.24 the state board on issues affecting nonpublic education and 312.25 nonpublic schools. The council may recognize educational 312.26 accrediting agencies, for the sole purpose of sections 120A.22, 312.27 120A.24, and 120A.26. 312.28 (b) A parent or guardian of a nonpublic school pupil or a 312.29 nonpublic school may file a complaint about services provided 312.30 under sections 123B.40 to 123B.42, and 123B.44 to 123B.48 with 312.31 the nonpublic education council. The council may review the 312.32 complaint and make a recommendation for resolution to the 312.33 commissioner. 312.34 Sec. 11. Minnesota Statutes 1998, section 123B.49, 312.35 subdivision 1, is amended to read: 312.36 Subdivision 1. [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 313.1Whenever it appears to be beneficial and for the best interest313.2of the district and the pupils of the district to carry on any313.3school sport activities or educational activities connected with313.4their studies outside of the territorial limits of the district,313.5 The board may authorizesuchactivitiesto beconducted outside 313.6 of the territorial limits of the district under such rules and 313.7 regulations as the board deems sufficient. The district may pay 313.8 all necessary costs therefor including transportation from the 313.9 district funds available. 313.10 Sec. 12. Minnesota Statutes 1998, section 123B.49, 313.11 subdivision 4, is amended to read: 313.12 Subd. 4. [BOARDCONTROLAUTHORIZATION OF EXTRACURRICULAR 313.13 ACTIVITIES.] (a) The board maytake charge of and control313.14 authorize all extracurricular activities of the teachers and 313.15 children of the public schools in the district. Extracurricular 313.16 activities means all direct and personal services for public 313.17 school pupils for their enjoyment that are managed and operated 313.18 under the guidance of an adult or staff member. 313.19 (b) Extracurricular activities have all of the following 313.20 characteristics: 313.21 (1) they are not offered for school credit nor required for 313.22 graduation; 313.23 (2) they are generally conducted outside school hours, or 313.24 if partly during school hours, at times agreed by the 313.25 participants, and approved by school authorities; 313.26 (3) the content of the activities is determined primarily 313.27 by the pupil participants under the guidance of a staff member 313.28 or other adult. 313.29 (c) If the board does nottake charge of and control313.30 authorize extracurricular activities, these activities shall be 313.31 self-sustaining with all expenses, except direct salary costs 313.32 and indirect costs of the use of school facilities, met by dues, 313.33 admissions, or other student fundraising events. The general 313.34 fund must reflect only those salaries directly related to and 313.35 readily identified with the activity and paid by public funds. 313.36 Other revenues and expenditures for extra curricular activities 314.1 must be recorded according to the "Manual of Instruction for 314.2 Uniform Student Activities Accounting for Minnesota School 314.3 Districts and Area Vocational-Technical Colleges." 314.4 Extracurricular activities not under board control must have an 314.5 annual financial audit and must also be audited annually for 314.6 compliance with this section. 314.7 (d) If the boardtakes charge of and controlsauthorizes 314.8 extracurricular activities, any or all costs of these activities 314.9 may be provided from school revenues and all revenues and 314.10 expenditures for these activities shall be recorded in the same 314.11 manner as other revenues and expenditures of the district. 314.12 (e) If the boardtakes charge of and controlsauthorizes 314.13 extracurricular activities, the teachers or pupils in the 314.14 district must not participate in such activity, nor shall the 314.15 school name or any allied name be used in connection therewith, 314.16 except by consent and direction of the board. 314.17 Sec. 13. Minnesota Statutes 1998, section 123B.51, 314.18 subdivision 1, is amended to read: 314.19 Subdivision 1. [SITES.] According to section 126C.40, 314.20 subdivision 1, or 465.71, when funds are available, the board 314.21 may locate and acquire necessary sites ofschoolhousesschools 314.22 or enlargements, or additions to existingschoolhouse sites314.23 schools by lease, purchase or condemnation under the right of 314.24 eminent domain; it may erectschoolhousesschools on the sites; 314.25 it may erect or purchase garages for district-owned school 314.26 buses. When property is taken by eminent domain by authority of 314.27 this subdivision when needed by the district for such purposes, 314.28 the fact that the property has been acquired by the owner under 314.29 the power of eminent domain or is already devoted to public use, 314.30 shall not prevent its acquisition by the district. The board 314.31 may sell or exchangeschoolhousesschools or sites, and execute 314.32 deeds of conveyance thereof. 314.33 Sec. 14. Minnesota Statutes 1998, section 123B.51, 314.34 subdivision 5, is amended to read: 314.35 Subd. 5. [SCHOOLHOUSESCHOOL CLOSING.] The board may close 314.36 aschoolhouseschool only after a public hearing on the question 315.1 of the necessity and practicability of the proposed closing. 315.2 Published notice of the hearing shall be given for two weeks in 315.3 the official newspaper of the district. The time and place of 315.4 the meeting, the description and location of theschoolhouse315.5 school, and a statement of the reasons for the closing must be 315.6 specified in the notice. Parties requesting to give testimony 315.7 for and against the proposal shall be heard by the board before 315.8 it makes a final decision to close or not to close 315.9 theschoolhouseschool. 315.10 Sec. 15. Minnesota Statutes 1998, section 123B.73, 315.11 subdivision 1, is amended to read: 315.12 Subdivision 1. [INSPECTION.] The commissionerand the315.13state fire marshal shall develop a plan to inspect once every315.14three years every public school facility used for educational315.15purposesshall contract with the fire marshal to conduct fire 315.16 safety inspections of all school buildings. Each school 315.17 facility shall be inspected once every three years or more 315.18 frequently at the request of the school district or the 315.19 commissioner.Inspections must begin during the 1990-1991315.20school year. The plan must provide for continued inspection by315.21local units of government of public school facilities that have315.22been inspected by a local unit of government between January 1,315.231987, and January 1, 1990, and may provide for inspections by315.24local units of government in other situations. Each inspection315.25report must be filed with the commissioner, the local school315.26board, and the state fire marshal. Notwithstanding section315.27299F.011, subdivisions 5a and 5b, a variance from the code must315.28be approved by the state fire marshal before taking effect. The315.29state board may request that the state fire marshal inspect a315.30particular school facility.315.31 Sec. 16. Minnesota Statutes 1998, section 123B.83, 315.32 subdivision 1, is amended to read: 315.33 Subdivision 1. [REDUCE STATUTORY OPERATING DEBT.] (a) 315.34Beginning in fiscal year 1978 and in each year thereafter,A 315.35 district which had statutory operating debt on June 30, 1977 315.36 pursuant to section 126C.42 must limit its expenditures in each 316.1 fiscal year so that the amount of its statutory operating debt 316.2 calculated at the end of that fiscal year is not greater than 316.3 the amount of the district's statutory operating debt as of June 316.4 30, 1977, as certified and adjusted by the commissioner, 316.5 increased by an amount equal to 2-1/2 percent of that district's 316.6 operating expenditures for the fiscal year for which the 316.7 statutory operating debt calculation is being made. 316.8 (b) When a district is no longer required to levy pursuant 316.9 to section 126C.42, subdivision 1, subdivision 2 is applicable. 316.10 Sec. 17. Minnesota Statutes 1998, section 123B.90, 316.11 subdivision 1, is amended to read: 316.12 Subdivision 1. [SCHOOL BUS SAFETY WEEK.] The third week of 316.13 school is designated as school bus safety week. 316.14A school board may designate one day of school bus safety316.15week as school bus driver day.316.16 Sec. 18. Minnesota Statutes 1998, section 123B.90, 316.17 subdivision 2, is amended to read: 316.18 Subd. 2. [STUDENT TRAINING.] (a) Each district must 316.19 provide public school pupils enrolled in grades kindergarten 316.20 through 10 with age-appropriate school bus safety training. The 316.21 training must be results-oriented and shall consist of both 316.22 classroom instruction and practical training using a school 316.23 bus. Upon completing the training, a student shall be able to 316.24 demonstrate knowledge and understanding of at least the 316.25 following competencies and concepts: 316.26 (1) transportation by school bus is a privilege and not a 316.27 right; 316.28 (2) district policies for student conduct and school bus 316.29 safety; 316.30 (3) appropriate conduct while on the school bus; 316.31 (4) the danger zones surrounding a school bus; 316.32 (5) procedures for safely boarding and leaving a school 316.33 bus; 316.34 (6) procedures for safe street or road crossing; and 316.35 (7) school bus evacuation and other emergency procedures. 316.36 (b) Each nonpublic school located within the district must 317.1 provide all nonpublic school pupils enrolled in grades 317.2 kindergarten through 10 who are transported by school bus at 317.3 public expense and attend school within the district's 317.4 boundaries with training as required in paragraph (a). The 317.5 school district shall make a bus available for the practical 317.6 training if the district transports the nonpublic students. 317.7 Each nonpublic school shall provide the instruction. 317.8 (c)All students enrolled in grades kindergarten through 3317.9who are transported by school bus and are enrolled during the317.10first or second week of school must demonstrate achievement of317.11the school bus safety training competencies by the end of the317.12third week of school. All students enrolled in grades 4 through317.1310 who are transported by school bus and are enrolled during the317.14first or second week of school must demonstrate achievement of317.15the competencies by the end of the sixth week of school.317.16Students enrolled in grades kindergarten through 10 who enroll317.17in a school after the second week of school and are transported317.18by school bus shall undergo school bus safety training and317.19demonstrate achievement of the school bus safety competencies317.20within four weeks of the first day of attendance. The pupil317.21transportation safety director in each district must certify to317.22the commissioner annually that all students transported by317.23school bus within the district have satisfactorily demonstrated317.24knowledge and understanding of the school bus safety317.25competencies according to this section or provide an explanation317.26for a student's failure to demonstrate the competencies. The317.27principal or other chief administrator of each nonpublic school317.28must certify annually to the public transportation safety317.29director of the district in which the school is located that all317.30of the school's students transported by school bus at public317.31expense have received training. A district may deny317.32transportation to a student who fails to demonstrate the317.33competencies, unless the student is unable to achieve the317.34competencies due to a disability, or to a student who attends a317.35nonpublic school that fails to provide training as required by317.36this subdivision.318.1(d) A district and a nonpublic school with students318.2transported by school bus at public expense must, to the extent318.3possible, provide kindergarten pupils with bus safety training318.4before the first day of school.318.5(e)A district and a nonpublic school with students 318.6 transported by school bus at public expense must also provide 318.7 student safety education for bicycling and pedestrian safety, 318.8 for students enrolled in grades kindergarten through 5. 318.9(f)(d) A district and a nonpublic school with students 318.10 transported by school bus at public expense must make reasonable 318.11 accommodations for the school bus, bicycle, and pedestrian 318.12 safety training of pupils known to speak English as a second 318.13 language and pupils with disabilities. 318.14 Sec. 19. Minnesota Statutes 1998, section 123B.91, 318.15 subdivision 1, is amended to read: 318.16 Subdivision 1. [COMPREHENSIVE POLICY.] Each district must 318.17 develop and implement a comprehensive, written policy governing 318.18 pupil transportation safety, including transportation of 318.19 nonpublic school students, when applicable. The policy shall, 318.20 at minimum, contain: 318.21 (1) provisions for appropriate student bus safety training 318.22 under section 123B.90; 318.23 (2) rules governing student conduct on school buses and in 318.24 school bus loading and unloading areas; 318.25 (3) a statement of parent or guardian responsibilities 318.26 relating to school bus safety; 318.27 (4) provisions for notifying students and parents or 318.28 guardians of their responsibilities and the rules; 318.29 (5) an intradistrict system for reporting school bus 318.30 accidents or misconduct and a system for dealing with local law 318.31 enforcement officials in cases of criminal conduct on a school 318.32 bus; 318.33 (6) a discipline policy to address violations of school bus 318.34 safety rules, including procedures for revoking a student's bus 318.35 riding privileges in cases of serious or repeated misconduct; 318.36 (7) a system for integrating school bus misconduct records 319.1 with other discipline records; 319.2 (8) a statement of bus driver duties; 319.3 (9) planned expenditures for safety activities under 319.4 section 123B.89 and, where applicable, provisions governing bus 319.5 monitor qualifications, training, and duties; 319.6 (10) rules governing the use and maintenance of type III 319.7 vehicles, drivers of type III vehicles, qualifications to drive 319.8 a type III vehicle, qualifications for a type III vehicle and 319.9 the circumstances under which a student may be transported in a 319.10 type III vehicle; 319.11 (11) operating rules and procedures; 319.12 (12) provisions for annual bus driver in-service training 319.13 and evaluation; 319.14 (13) emergency procedures; 319.15 (14) a system for maintaining and inspecting equipment; 319.16 (15) requirements of the school district, if any, that 319.17 exceed state law minimum requirements for school bus operations; 319.18 and 319.19 (16) requirements for basic first aid training, which must 319.20 include the Heimlich maneuver and procedures for dealing with 319.21 obstructed airways, shock, bleeding, and seizures. 319.22Districts are encouraged to use the model policy developed319.23by the Minnesota school boards association, the department of319.24public safety, and the department of children, families, and319.25learning, as well as the current edition of the "National319.26Standards for School Buses and Operations" published by the319.27National Safety Council, in developing safety policies.Each 319.28 district shall review its policy annually and make appropriate 319.29 amendments, which must be submitted to the school bus safety 319.30 advisory committee within one month of approval by the school 319.31 board. 319.32 Sec. 20. Minnesota Statutes 1998, section 123B.92, 319.33 subdivision 2, is amended to read: 319.34 Subd. 2. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 319.35 districtmustmay reserve an amountequal to the greater of $500319.36or $1.50 times the number of adjusted pupil units,for that 320.1 school year to provide student transportation safety programs 320.2 under section 123B.89.This revenue may only be used if the320.3district complies with the reporting requirements of section320.4123B.90, 123B.91, 169.4582, or 171.321, subdivision 5.320.5 Sec. 21. Minnesota Statutes 1998, section 123B.92, 320.6 subdivision 4, is amended to read: 320.7 Subd. 4. [TRANSPORTATION SAFETY AID.] A district's 320.8 transportation safety aid equals the district's reserved revenue 320.9 for transportation safety under subdivision 2 for that school 320.10 year.Failure of a district to comply with the reporting320.11requirements of section 123B.90, 123B.91, 169.4582, or 171.321,320.12subdivision 5, may result in a withholding of that district's320.13transportation safety aid for that school year.320.14 Sec. 22. [REPEALER.] 320.15 Minnesota Statutes 1998, sections 123B.02, subdivisions 5, 320.16 6, 9, 10, 11, 13, and 16; 123B.04, subdivision 4; 123B.11; 320.17 123B.147, subdivisions 1 and 3; 123B.15; 123B.16; 123B.17; 320.18 123B.18; 123B.19; 123B.40; 123B.49, subdivisions 2 and 3; 320.19 123B.51, subdivisions 2, 3, and 4; 123B.744; 123B.84; 123B.87; 320.20 123B.88, subdivisions 11, 12, 13, 18, 20, 21, and 22; 123B.93; 320.21 and 123B.95, subdivision 3, are repealed. 320.22 ARTICLE 16 320.23 EDUCATION PROGRAMS 320.24 Section 1. Minnesota Statutes 1998, section 124D.02, 320.25 subdivision 1, is amended to read: 320.26 Subdivision 1. [KINDERGARTEN INSTRUCTION.] The boardmay320.27establish and maintain one or more kindergartens for the320.28instruction of children and after July 1, 1974, shall provide320.29 must make kindergarten instruction available for all eligible 320.30 children, either in the district or in another district.All320.31children to be eligibleEligibility for kindergarten must beat320.32least five years of age on September 1 of the calendar year in320.33which the school year commences. In addition all children320.34selected under an early admissions policy established by the320.35school board may be admitted. Nothing in this section shall320.36prohibit a school district from establishing head start,321.1prekindergarten, or nursery school classes for children below321.2kindergarten agedetermined according to section 120A.20, 321.3 subdivision 1. Any school board with evidence that providing 321.4 kindergarten will cause an extraordinary hardship on the school 321.5 district may apply to the commissioner of children, families, 321.6 and learning for an exception. 321.7 Sec. 2. Minnesota Statutes 1998, section 124D.03, 321.8 subdivision 3, is amended to read: 321.9 Subd. 3. [PUPIL APPLICATION PROCEDURES.] In order that a 321.10 pupil may attend a school or program in a nonresident district, 321.11 the pupil's parent or guardian must submit an application to the 321.12 nonresident district.Before submitting an application, the321.13pupil and the pupil's parent or guardian must explore with a321.14school guidance counselor, or other appropriate staff member321.15employed by the district the pupil is currently attending, the321.16pupil's academic or other reason for applying to enroll in a321.17nonresident district. The pupil's application must identify the321.18reason for enrolling in the nonresident district.The parent or 321.19 guardian of a pupil must submit an application byJanuary321.2015June 1 for initial enrollment beginning the following school 321.21 year. The application must be on a form provided by the 321.22 department of children, families, and learning. A particular 321.23 school or program may be requested by the parent. Once enrolled 321.24 in a nonresident district, the pupil may remain enrolled and is 321.25 not required to submit annual or periodic applications. To 321.26 return to the resident district or to transfer to a different 321.27 nonresident district, the parent or guardian of the pupil must 321.28 provide notice to the resident district or apply to a different 321.29 nonresident district byJanuary 15June 1 for enrollment 321.30 beginning the following school year. Each district must accept 321.31 or reject an application it receives and notify the parent or 321.32 guardian in writing within 30 calendar days of receiving the 321.33 application. A notification of acceptance must include the date 321.34 enrollment can begin. Within ten days of receiving the 321.35 notification from the nonresident district, the parent or 321.36 guardian must inform the nonresident district whether the pupil 322.1 intends to enroll in the nonresident district. 322.2 Sec. 3. Minnesota Statutes 1998, section 124D.09, 322.3 subdivision 5, is amended to read: 322.4 Subd. 5. [AUTHORIZATION; NOTIFICATION.]Notwithstanding322.5any other law to the contrary,An 11th or 12th grade pupil 322.6 enrolled in a school or an American Indian-controlled tribal 322.7 contract or grant school eligible for aid under section 124D.83, 322.8 except a foreign exchange pupil enrolled in a district under a 322.9 cultural exchange program, may apply to an eligible institution, 322.10 as defined in subdivision 3, to enroll in nonsectarian courses 322.11 offered by that post-secondary institution. If an institution 322.12 accepts a secondary pupil for enrollment under this section, the 322.13 institution shall send written notice to the pupil, the pupil's 322.14 school or school district, and the commissioner within ten days 322.15 of acceptance. The notice must indicate the course and hours of 322.16 enrollment of that pupil. If the pupil enrolls in a course for 322.17 post-secondary credit, the institution must notify the pupil 322.18 about payment in the customary manner used by the institution. 322.19 Sec. 4. Minnesota Statutes 1998, section 124D.09, 322.20 subdivision 6, is amended to read: 322.21 Subd. 6. [COUNSELINGPARENTAL CONSENT.]To the extent322.22possible, the school or school district must provide counseling322.23services to pupils and their parents or guardian before the322.24pupils enroll in courses under this section to ensure that the322.25pupils and their parents or guardian are fully aware of the322.26risks and possible consequences of enrolling in post-secondary322.27courses. The school or school district must provide information322.28on the program including who may enroll, what institutions and322.29courses are eligible for participation, the decision-making322.30process for granting academic credits, financial arrangements322.31for tuition, books and materials, eligibility criteria for322.32transportation aid, available support services, the need to322.33arrange an appropriate schedule, consequences of failing or not322.34completing a course in which the pupil enrolls, the effect of322.35enrolling in this program on the pupil's ability to complete the322.36required high school graduation requirements, and the academic323.1and social responsibilities that must be assumed by the pupils323.2and their parents or guardian. The person providing counseling323.3shall encourage pupils and their parents or guardian to also use323.4available counseling services at the post-secondary institutions323.5before the quarter or semester of enrollment to ensure that323.6anticipated plans are appropriate.323.7 Prior to enrolling in a course, the pupil and the pupil's 323.8 parents or guardian must sign a form that must be provided by 323.9 the school or school district and may be obtained from a 323.10 post-secondary institution statingthat they have received the323.11information specified in this subdivision andthat they 323.12 understand the responsibilities that must be assumed in 323.13 enrolling in this program. The department must, upon request, 323.14 provide technical assistance to a school or school district in 323.15 developing appropriate forms and counseling guidelines. 323.16 Sec. 5. Minnesota Statutes 1998, section 124D.09, 323.17 subdivision 7, is amended to read: 323.18 Subd. 7. [DISSEMINATION OF INFORMATION; NOTIFICATION OF 323.19 INTENT TO ENROLL.]By March 1 of each year,A district must 323.20 adopt policies for deadlines and provide general information 323.21 about the program to all pupils in grades 10 and 11.To assist323.22the district in planning, a pupil shall inform the district by323.23March 30 of each year of the pupil's intent to enroll in323.24post-secondary courses during the following school year. A323.25pupil is not bound by notifying or not notifying the district by323.26March 30.323.27 Sec. 6. Minnesota Statutes 1998, section 124D.09, 323.28 subdivision 12, is amended to read: 323.29 Subd. 12. [CREDITS.] A pupil may enroll in a course under 323.30 this section for either secondary credit or post-secondary 323.31 credit. At the time a pupil enrolls in a course, the pupil 323.32 shall designate whether the course is for secondary or 323.33 post-secondary credit. A pupil taking several courses may 323.34 designate some for secondary credit and some for post-secondary 323.35 credit. A pupil must not audit a course under this section. 323.36 A district shall grant academic credit to a pupil enrolled 324.1 in a course for secondary credit if the pupil successfully 324.2 completes the course.Seven quarter or four semester college324.3credits equal at least one full year of high school credit.324.4Fewer college credits may be prorated. A district must also324.5grant academic credit to a pupil enrolled in a course for324.6post-secondary credit if secondary credit is requested by a324.7pupil. If no comparable course is offered by the district, the324.8district must, as soon as possible, notify the commissioner, who324.9shall determine the number of credits that shall be granted to a324.10pupil who successfully completes a course. If a comparable324.11course is offered by the district, the school board shall grant324.12a comparable number of credits to the pupil. If there is a324.13dispute between the district and the pupil regarding the number324.14of credits granted for a particular course, the pupil may appeal324.15the board's decision to the commissioner. The commissioner's324.16decision regarding the number of credits shall be final.324.17 The secondary credits granted to a pupil must be counted 324.18 toward the graduation requirements and subject area requirements 324.19 of the district.Evidence of successful completion of each324.20course and secondary credits granted must be included in the324.21pupil's secondary school record. A pupil shall provide the324.22school with a copy of the pupil's grade in each course taken for324.23secondary credit under this section. Upon the request of a324.24pupil, the pupil's secondary school record must also include324.25evidence of successful completion and credits granted for a324.26course taken for post-secondary credit. In either case, the324.27record must indicate that the credits were earned at a324.28post-secondary institution.324.29If a pupil enrolls in a post-secondary institution after324.30leaving secondary school, the post-secondary institution must324.31award post-secondary credit for any course successfully324.32completed for secondary credit at that institution. Other324.33post-secondary institutions may award, after a pupil leaves324.34secondary school, post-secondary credit for any courses324.35successfully completed under this section. An institution may324.36not charge a pupil for the award of credit.325.1 Sec. 7. Minnesota Statutes 1998, section 124D.10, 325.2 subdivision 1, is amended to read: 325.3 Subdivision 1. [PURPOSESEXPECTED OUTCOMES.] (a) 325.4 Thepurpose of this section isexpected outcomes of a charter 325.5 school are to: 325.6 (1) improve pupil learning; 325.7 (2) increase learning opportunities for pupils; 325.8 (3) encourage the use of different and innovative teaching 325.9 methods; 325.10 (4) require the measurement of learning outcomes and create 325.11 different and innovative forms of measuring outcomes; 325.12 (5) establish new forms of accountability for schools; or 325.13 (6) create new professional opportunities for teachers, 325.14 including the opportunity to be responsible for the learning 325.15 program at the school site. 325.16 (b) This section does not provide a means to keep open a 325.17 school that otherwise would be closed. Applicants in these 325.18 circumstances bear the burden of proving that conversion to a 325.19 charter school fulfills a purpose specified in this subdivision, 325.20 independent of the school's closing. 325.21 Sec. 8. Minnesota Statutes 1998, section 124D.10, 325.22 subdivision 6, is amended to read: 325.23 Subd. 6. [CONTRACT.] The sponsor's authorization for a 325.24 charter school must be in the form of a written contract signed 325.25 by the sponsor and the board of directors of the charter 325.26 school. The contract for a charter school must be in writing 325.27 and contain at least the following: 325.28 (1) a description of a program that carries out one or more 325.29 of thepurposesexpected outcomes in subdivision 1; 325.30 (2) specific outcomes pupils are to achieve under 325.31 subdivision 10; 325.32 (3) admission policies and procedures; 325.33 (4) management and administration of the school; 325.34 (5) requirements and procedures for program and financial 325.35 audits; 325.36 (6) how the school will comply with subdivisions 8, 13, 16, 326.1 and 23; 326.2 (7) assumption of liability by the charter school; 326.3 (8) types and amounts of insurance coverage to be obtained 326.4 by the charter school; 326.5 (9) the term of the contract, which may be up to three 326.6 years; and 326.7 (10) if the board of directors or the operators of the 326.8 charter school provide special instruction and services for 326.9 children with a disability under sections 125A.03 to 125A.24, 326.10 and 125A.65, a description of the financial parameters within 326.11 which the charter school will operate to provide the special 326.12 instruction and services to children with a disability. 326.13 Sec. 9. Minnesota Statutes 1998, section 124D.10, 326.14 subdivision 15, is amended to read: 326.15 Subd. 15. [REVIEW AND COMMENT.] The department must review 326.16 and comment on the evaluation, by the chartering school 326.17 district, of the performance of a charter school before the 326.18 charter school's contract is renewed.The information from the326.19review and comment shall be reported to the state board of326.20education in a timely manner. Periodically, the state board326.21shall report trends or suggestions based on the evaluation of326.22charter school contracts to the education committees of the326.23state legislature.326.24 Sec. 10. Minnesota Statutes 1998, section 124D.10, 326.25 subdivision 19, is amended to read: 326.26 Subd. 19. [DISSEMINATEAVAILABLE INFORMATION.] The 326.27sponsor, the operators, and thedepartment of children, 326.28 families, and learning mustdisseminatemake information 326.29 available to the public on how to form and operate a charter 326.30 school and how to utilize the offerings of a charter school. 326.31 Particular groups to be targeted include low-income families and 326.32 communities, and students of color. 326.33 Sec. 11. Minnesota Statutes 1998, section 124D.115, 326.34 subdivision 3, is amended to read: 326.35 Subd. 3. [PROGRAM REIMBURSEMENT.] (a)State funds are326.36provided to reimburse school breakfasts.Each school year, the 327.1 state must reimburse schools in the amount of 5.1 cents for each 327.2 fully paid breakfast and for each free and reduced price 327.3 breakfast not eligible for the "severe need" rate. 327.4 (b) In addition to paragraph (a), each school year the 327.5 state must reimburse schools 10.5 cents for each free and 327.6 reduced price breakfast not eligible for the "severe need" rate 327.7 if between 33 and 40 percent of the school lunches served during 327.8 the second preceding school year were served free or at a 327.9 reduced price. 327.10 Sec. 12. Minnesota Statutes 1998, section 124D.118, 327.11 subdivision 2, is amended to read: 327.12 Subd. 2. [ESTABLISHMENT; SCHOOL PARTICIPATION.]Each327.13district in the state is encouraged to participate in the327.14state-supported school milk program for kindergartners.327.15 Participating districts must provide one serving of milk on each 327.16 school day to each kindergarten student attending a public or 327.17 nonpublic school in the district.No student is required to327.18accept the milk that is provided by the district.The program 327.19 must be promoted and operated under the direction of the 327.20 commissioner or the commissioner's designee. 327.21 Sec. 13. Minnesota Statutes 1998, section 124D.118, 327.22 subdivision 3, is amended to read: 327.23 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 327.24 (a) The commissioner shall: 327.25 (1)encourage all districts to participate in the school327.26milk program for kindergartners;327.27(2) preparemaintain program guidelines, not subject to327.28chapter 14 until July 1, 1998,which will effectively and 327.29 efficiently distribute appropriated and donated money to 327.30 participating districts; and 327.31(3)(2) seek donations and matching funds from appropriate 327.32 private and public sources. 327.33 (b) Program guidelines may provide for disbursement to 327.34 districts through a mechanism of prepayments or by reimbursement 327.35 for approved program expenses. 327.36 Sec. 14. Minnesota Statutes 1998, section 124D.28, 328.1 subdivision 1, is amended to read: 328.2 Subdivision 1. [MANDATORY COMPONENTSEXPECTATIONS.] The 328.3 expected outcomes of a family connections program must include: 328.4 (1)participation by a designateddesignation of an 328.5 individual as a career teacher, principal-teacher, or counselor 328.6 teacher; 328.7 (2) an increased emphasis on each individual child's unique 328.8 learning and development needs beginning with early childhood 328.9 family education; 328.10 (3)procedures to give the career teacher a major328.11responsibility for leadership of the instructional and328.12noninstructional activities of each child beginning with early328.13childhood family education;328.14(4) procedures to involveincreased involvement of parents 328.15 in the learning and development experiences of their 328.16 children; and 328.17(5) procedures to implement outcome based education by328.18focusing on the needs of the learner;328.19(6) procedures to coordinate and integrate(4) increased 328.20 involvement of the instructional program with all community 328.21 education programs;328.22(7) procedures to concentrate career teacher programs at328.23sites that provide early childhood family education and328.24subsequent learning and development programs; and328.25(8) procedures for the district to fund the program. 328.26 Sec. 15. Minnesota Statutes 1998, section 124D.29, is 328.27 amended by adding a subdivision to read: 328.28 Subd. 6. [DISTRICT COMPONENTS.] The school board and the 328.29 exclusive bargaining representative of the teachers that has a 328.30 family connections program shall negotiate: 328.31 (1) staff to student ratios; 328.32 (2) procedures for teachers, principals, and counselors to 328.33 apply for and renew the position of career teacher, 328.34 principal-teacher, or counselor teacher; and 328.35 (3) the duties of the career teacher, principal-teacher, or 328.36 counselor teacher. 329.1 Sec. 16. Minnesota Statutes 1998, section 124D.30, 329.2 subdivision 3, is amended to read: 329.3 Subd. 3. [COMMISSIONER APPROVAL.] The commissionermay329.4 shall approve plans and applications for districts throughout 329.5 the state for family connections aid. The commissioner shall 329.6 establish application procedures and deadlines. 329.7 Sec. 17. Minnesota Statutes 1998, section 124D.34, 329.8 subdivision 4, is amended to read: 329.9 Subd. 4. [FOUNDATION PROGRAMS AND DUTIES.] The foundation 329.10 shall advance applied leadership and intracurricular vocational 329.11 learning experiences for students.These may include, but are329.12not limited to:329.13(1) recognition programs and awards for students329.14demonstrating excellence in applied leadership;329.15(2) summer programs for student leadership, career329.16development, applied academics, and mentorship programs with329.17business and industry;329.18(3) recognition programs for teachers, administrators, and329.19others who make outstanding contributions to school-to-work329.20programs;329.21(4) outreach programs to increase the involvement of urban329.22and suburban students;329.23(5) organized challenges requiring cooperation and329.24competition for secondary and post-secondary students;329.25(6) assistance and training to community teams to increase329.26career awareness and empowerment of youth as community leaders;329.27and329.28(7) assessment and activities in order to plan for and329.29implement continuous improvement.329.30To the extent possible, the foundation shall make these329.31programs available to students in all parts of the state.The 329.32 foundation may receive public and private money, grants, and 329.33 in-kind services and goods from nonstate sources without 329.34 complying with section 7.09, subdivision 1. 329.35 Sec. 18. Minnesota Statutes 1998, section 124D.35, is 329.36 amended to read: 330.1 124D.35 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 330.2The commissioner shall establishA youth entrepreneurship 330.3 education programto improve the academic and entrepreneurial330.4skills of students and aid in their transition from school to330.5business creation. The programshall strengthen local economies 330.6 by creating jobs that enable citizens to remain in their 330.7 communities and to foster cooperation among educators, economic 330.8 development professionals, business leaders, and representatives 330.9 of labor. Assistance under this section shall be available to 330.10 new or existing student-operated or school-operated businesses 330.11 that have an educational purpose, and provide service or 330.12 products for customers or clients who do not attend or work at 330.13 the sponsoring school. The commissioner may require an equal 330.14 local match for assistance under this section up to the maximum 330.15 grant amount of $20,000. 330.16 Sec. 19. Minnesota Statutes 1998, section 124D.37, is 330.17 amended to read: 330.18 124D.37 [PURPOSEEXPECTED OUTCOMES OF THE MINNESOTA YOUTH 330.19 WORKS ACT.] 330.20 Thepurposesexpected outcomes of sections 124D.37 to 330.21 124D.45 are to: 330.22 (1)renew the ethic ofpromote civic responsibility in 330.23 Minnesota; 330.24 (2)empower youth toimprovetheir life opportunities330.25throughyouth literacy, job placement, and other essential life 330.26 skills; 330.27 (3)empower governmentimprove government'sto meet its330.28 responsibility to prepare young people to be contributing 330.29 members of society; 330.30 (4) help meethumancivic, educational, environmental, and 330.31 public safety needs, particularly those needs relating to 330.32 poverty; 330.33 (5)prepare a citizenry that is academically competent,330.34ready for work, and socially responsible;330.35(6)demonstrate the connection between youth and meaningful 330.36 communityservice, community service and education, and331.1education and meaningful opportunities in the business331.2community;331.3(7) demonstrate the connection between providing331.4opportunities for at-risk youth and reducing crime rates and the331.5social costs of troubled youthactivities; 331.6(8)(6) create linkages for a comprehensive youth service 331.7 and learning program in Minnesotaincluding school age programs,331.8higher education programs, youth work programs, and service331.9corps programs; and 331.10(9)(7) coordinate federal and state activities that 331.11 advance the purposes in this section. 331.12 Sec. 20. Minnesota Statutes 1998, section 124D.40, 331.13 subdivision 2, is amended to read: 331.14 Subd. 2. [GRANT AUTHORITY.] The commissionand, beginning331.15January 1, 1997, the councilmust use any state appropriation 331.16 and any available federal funds, including any grant received 331.17 under federal law, to award grants to establish programs for 331.18 youth works meeting the requirements of section 124D.41. At 331.19 least one grant each must be available for a metropolitan 331.20 proposal, a rural proposal, and a statewide proposal. If a 331.21 portion of the suburban metropolitan area is not included in the 331.22 metropolitan grant proposal, the statewide grant proposal must 331.23 incorporate at least one suburban metropolitan area.In331.24awarding grants, the commission and, beginning January 1, 1997,331.25the council may select at least one residential proposal and one331.26nonresidential proposal, provided the proposals meet or exceed331.27the criteria in section 124D.41.331.28 Sec. 21. Minnesota Statutes 1998, section 124D.41, is 331.29 amended to read: 331.30 124D.41 [GRANT APPLICATIONS.] 331.31 Subdivision 1. [APPLICATIONS REQUIRED.] An organization 331.32 seeking federal or state grant money under sections 124D.39 to 331.33 124D.44 shall prepare and submit to the commissionand,331.34beginning January 1, 1997, the councilan application that meets 331.35 the requirementsof this sectiondeveloped by the commission. 331.36 The commissionand, beginning January 1, 1997, the councilmust 332.1 develop, and the applying organizations must comply with, the332.2form and manner of the applicationrequirements that meet the 332.3 expected outcomes in section 124D.37. 332.4 Subd. 2. [APPLICATION CONTENT.] An applicant on its 332.5 application must:describe how it intends to meet the expected 332.6 outcomes in section 124D.37. 332.7(1) propose a program to provide participants the332.8opportunity to perform community service to meet specific unmet332.9community needs, and participate in classroom, work-based, and332.10service-learning;332.11(2) assess the community's unmet educational, human,332.12environmental, and public safety needs, the resources and332.13programs available for meeting those needs, and how young people332.14participated in assessing community needs;332.15(3) describe the educational component of the program,332.16including classroom hours per week, classroom time for332.17participants to reflect on the program experience, and332.18anticipated academic outcomes related to the service experience;332.19(4) describe the work to be performed, the ratio of youth332.20participants to crew leaders and mentors, and the expectations332.21and qualifications for crew leaders and mentors;332.22(5) describe local funds or resources available to meet the332.23match requirements of section 124D.44;332.24(6) describe any funds available for the program from332.25sources other than the requested grant;332.26(7) describe any agreements with local businesses to332.27provide participants with work-learning opportunities and332.28mentors;332.29(8) describe any agreement with local post-secondary332.30educational institutions to offer participants course credits332.31for their community service-learning experience;332.32(9) describe any agreement with a local high school or an332.33alternative learning center to provide remedial education,332.34credit for community service work and work-based learning, or332.35graduate equivalency degrees;332.36(10) describe any pay for service or other program delivery333.1mechanism that will provide reimbursement for benefits conferred333.2or recover costs of services participants perform;333.3(11) describe how local resources will be used to provide333.4support and assistance for participants to encourage them to333.5continue with the program, fulfill the terms of the contract,333.6and remain eligible for any postservice benefit;333.7(12) describe the arbitration mechanism for dispute333.8resolution required under section 124D.42, subdivision 2;333.9(13) describe involvement of community leaders in333.10developing broad-based support for the program;333.11(14) describe the consultation and sign-off process to be333.12used with any local labor organization representing employees in333.13the area engaged in work similar to that proposed for the333.14program to ensure that no current employees or available333.15employment positions will be displaced by program participants;333.16(15) certify to the commission and, beginning January 1,333.171997, the council, and to any certified bargaining333.18representatives representing employees of the applying333.19organization that the project will not decrease employment333.20opportunities that would be available without the project; will333.21not displace current employees including any partial333.22displacement in the form of reduced hours of work other than333.23overtime, wages, employment benefits, or regular seasonal work;333.24will not impair existing labor agreements; and will not result333.25in the substitution of project funding for preexisting funds or333.26sources of funds for ongoing work;333.27(16) describe the length of the required service period,333.28which may not be less than six months or more than two years, a333.29method to incorporate a participant's readiness to advance or333.30need for postservice financial assistance into individual333.31service requirements, and any opportunity for participating part333.32time or in another program;333.33(17) describe a program evaluation plan that contains333.34cost-effectiveness measures, measures of participant success333.35including educational accomplishments, job placements, community333.36contributions, and ongoing volunteer activities, outcome334.1measures based on a preprogram and postprogram survey of334.2community rates of arrest, incarceration, teenage pregnancy, and334.3other indicators of youth in trouble, and a list of local334.4resources dedicated to reducing these rates;334.5(18) describe a three-year financial plan for maintaining334.6the program;334.7(19) describe the role of local youth in developing all334.8aspects of the grant proposal; and334.9(20) describe the process by which the local private334.10industry council participated in, and reviewed the grant334.11application.334.12 Sec. 22. Minnesota Statutes 1998, section 124D.42, 334.13 subdivision 7, is amended to read: 334.14 Subd. 7. [TRAINING AND EDUCATION REQUIREMENTS.] Each 334.15 grantee organization must assess and work to enhance the 334.16 educational level of each entering participant.Each grantee334.17shall work to enhance the educational skills of each334.18participant. The commission and, beginning January 1, 1997, the334.19council may coordinate or contract with educational institutions334.20or other providers for educational services and evaluation.All 334.21 grantees shall give priority to educating and training 334.22 participants who do not have a high school diploma or its 334.23 equivalent, or who cannot afford post-secondary training and 334.24 education. 334.25 Sec. 23. Minnesota Statutes 1998, section 124D.46, 334.26 subdivision 1, is amended to read: 334.27 Subdivision 1. [GOALSESTABLISHMENT.]To better prepare334.28all learners to make transitions between education and334.29employment,A comprehensive education and employment transitions 334.30 system is established that is driven by multisector partnerships 334.31 and takes a lifelong approach to workforce development. 334.32 Thegoals of thestatewide education and employment transitions 334.33 systemareshall develop and implement methods: 334.34 (1) to improve the skills learners need to achieve greater 334.35 levels of self-sufficiency through education, training, and 334.36 work; 335.1 (2) to improve work-related counseling and information 335.2 about career opportunities and vocational education programs 335.3 available to learners to facilitate workforce development; 335.4 (3) to integrate opportunities for work-based learning, 335.5 service-learning, and other applied learning methods into the 335.6elementary, secondary, and post-secondary curriculum andstate 335.7 and local graduation standards; 335.8(4) to increase participation in employment opportunities335.9and demonstrate the relationship between education and335.10employment at the elementary, secondary, and post-secondary335.11education levels;335.12(5)(4) to promote the efficient use of public and private 335.13 resources by coordinating elementary, secondary, and 335.14 post-secondary education with related government programs; 335.15(6)(5) to expand educational options available to all 335.16 learners through collaborative efforts between school districts, 335.17 post-secondary institutions, employers, organized labor, 335.18 workers, learners, parents, community-based organizations, and 335.19 other interested parties; 335.20(7)(6) to increase opportunities for women, minorities, 335.21 individuals with a disability, and at-risk learners to fully 335.22 participate in work-based learning; 335.23(8) to establish performance standards for learners that335.24integrate state and local graduation standards and generally335.25recognized industry and occupational skill standards;and 335.26(9)(7) to provide support systems including a unified 335.27 labor market information system; a centralized quality assurance 335.28 system with information on learner achievement, employer 335.29 satisfaction, and measurable system outcomes; a statewide 335.30 marketing system to promote the importance of lifework 335.31 development; a comprehensive professional development system for 335.32 public and private sector partners; and a comprehensive system 335.33 for providing technical support to local partnerships for 335.34 education and employment transitions. 335.35 Sec. 24. Minnesota Statutes 1998, section 124D.47, 335.36 subdivision 2, is amended to read: 336.1 Subd. 2. [YOUTH APPRENTICESHIP PROGRAMS.] (a) A 336.2 comprehensive youth apprenticeship program must require 336.3 representatives of secondary and post-secondary school systems, 336.4 affected local businesses, industries, occupations and labor, as 336.5 well as the local community, to be actively and collaboratively 336.6 involved in advising and managing the program and ensuring, in 336.7 consultation with local private industry councils, that the 336.8 youth apprenticeship program meets local labor market demands, 336.9 provides student apprentices with the high skill training 336.10 necessary for career advancement, meets applicable state 336.11 graduation requirements and labor standards, pays apprentices 336.12 for their work and provides support services to program 336.13 participants. 336.14 (b) Local employers, collaborating with labor organizations 336.15 where appropriate, must assist the program by analyzing 336.16 workplace needs, creating work-related curriculum, employing and 336.17 adequately paying youth apprentices engaged in work-related 336.18 learning in the workplace, training youth apprentices to become 336.19 skilled in an occupation, providing student apprentices with a 336.20 workplace mentor, periodically informing the school of an 336.21 apprentice's progress, and making a reasonable effort to employ 336.22 youth apprentices who successfully complete the program. 336.23 (c) A student participating in a comprehensive youth 336.24 apprenticeship program must sign a youth apprenticeship 336.25 agreement with participating entities that obligates youth 336.26 apprentices, their parents or guardians, employers, and schools 336.27 to meet program requirements; indicates how academic336.28instruction, work-based learning, and worksite learning and336.29experience will be integrated; ensures that successful youth336.30apprentices will receive a recognized credential of academic and336.31occupational proficiency; and establishes the wage rate and336.32other benefits for which youth apprentices are eligible while336.33employed during the program. 336.34(d) Secondary school principals, counselors, or business336.35mentors familiar with the education to employment transitions336.36system must inform entering secondary school students about337.1available occupational and career opportunities and the option337.2of entering a youth apprenticeship or other work-based learning337.3program to obtain post-secondary academic and occupational337.4credentials.337.5 Sec. 25. Minnesota Statutes 1998, section 124D.49, 337.6 subdivision 3, is amended to read: 337.7 Subd. 3. [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 337.8 SYSTEMS.] A local education and employment transitions 337.9 partnership must assess the needs of employers, employees, and 337.10 learners, and develop a plan for implementing and achieving the 337.11 objectives of a local or regional education and employment 337.12 transitions system. The plan must provide for a comprehensive 337.13 local system for assisting learners and workers in making the 337.14 transition from school to work or for retraining in a new 337.15 vocational area. Theobjectivesexpected outcomes of a local 337.16 education and employment transitions system include: 337.17 (1) increasing the effectiveness of the educational 337.18 programsand curriculum of elementary, secondary, and337.19post-secondary schoolswhich meet state and local graduation 337.20 standards andthe work site in preparingprepare students in the 337.21 skills and knowledge needed to be successful in the workplace; 337.22 (2) implementing learner outcomes for students in grades 337.23 kindergarten through 12 designed to introduce the world of work 337.24 and to explore career opportunities, including nontraditional 337.25 career opportunities; 337.26 (3)eliminating barriers to providing effective integrated337.27applied learning, service-learning, or work-based curriculum;337.28(4) increasing opportunities to apply academic knowledge337.29and skills, including skills needed in the workplace, in local337.30settings which include the school, school-based enterprises,337.31post-secondary institutions, the workplace, and the community;337.32(5) increasing applied instruction in the attitudes and337.33skills essential for success in the workplace, including337.34cooperative working, leadership, problem-solving, and respect337.35for diversity;337.36(6)providing staff training for vocational guidance 338.1 counselors, teachers, and other appropriate staff in the 338.2 importance of preparing learners for the transition to work, and 338.3 in methods of providing instruction that incorporate applied 338.4 learning, work-based learning, and service-learning experiences; 338.5(7)(4) identifying and enlisting local and regional 338.6 employers who can effectively provide work-based or 338.7 service-learning opportunities, including, but not limited to, 338.8 apprenticeships, internships, and mentorships; 338.9(8)(5) recruiting community and workplace mentors 338.10 including peers, parents, employers and employed individuals 338.11 from the community, and employers of high school students; 338.12(9)(6) identifying current and emerging educational, 338.13 training, and employment needs of the area or region, especially 338.14 within industries with potential for job growth; 338.15(10)(7) improving the coordination and effectiveness of 338.16 local vocational and job training programs, including vocational 338.17 education, adult basic education, tech prep, apprenticeship, 338.18 service-learning, youth entrepreneur, youth training and 338.19 employment programs administered by the commissioner of economic 338.20 security, and local job training programs under the Job Training 338.21 Partnership Act, United States Code, title 29, section 1501, et 338.22 seq.; 338.23(11)(8) identifying and applying for federal, state, 338.24 local, and private sources of funding for vocational or applied 338.25 learning programs; 338.26(12)(9) providing students with current information and 338.27 counseling about career opportunities, potential employment, 338.28 educational opportunities in post-secondary institutions, 338.29 workplaces, and the community, and the skills and knowledge 338.30 necessary to succeed; 338.31(13) providing educational technology, including338.32interactive television networks and other distance learning338.33methods, to ensure access to a broad variety of work-based338.34learning opportunities;338.35(14)(10) including students with disabilities in a 338.36 district's vocational or applied learning program and ways to 339.1 serve at-risk learners through collaboration with area learning 339.2 centers under sections 123A.05 to 123A.09, or other alternative 339.3 programs; and 339.4(15)(11) providing a warranty to employers, post-secondary 339.5 education programs, and other post-secondary training programs, 339.6 that learners successfully completing a high school work-based 339.7 or applied learning program will be able to apply the knowledge 339.8 and work skills included in the program outcomes or graduation 339.9 requirements. The warranty shall require education and training 339.10 programs to continue to work with those learners that need 339.11 additional skill development until they can demonstrate 339.12 achievement of the program outcomes or graduation requirements. 339.13 Sec. 26. Minnesota Statutes 1998, section 124D.65, 339.14 subdivision 6, is amended to read: 339.15 Subd. 6. [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 339.16 counting the number of pupils of limited English proficiency for 339.17 purposes of this section, districts may include pupils of 339.18 limited English proficiency who attend nonpublic schools in the 339.19 district. A district which counts those pupils and receives aid 339.20 pursuant to this section must offer those pupils the same 339.21 programs on the same terms that it offers to pupils of limited 339.22 English proficiency who attend the public school. A program 339.23 provided for a nonpublic school pupil pursuant to this 339.24 subdivision must be provided at a public schoolor, a neutral 339.25 site as defined in section 123B.41, subdivision 13, the 339.26 nonpublic school, or any other suitable location. The school 339.27 district must make the final decision on the location of these 339.28 services. Nonpublic school pupils served by a district's 339.29 educational program for pupils of limited English proficiency 339.30 must be counted for average daily membership pursuant to 339.31 sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 339.32 1 to 4. 339.33 Sec. 27. Minnesota Statutes 1998, section 124D.74, 339.34 subdivision 1, is amended to read: 339.35 Subdivision 1. [PROGRAMDESCRIBEDOUTCOMES.] American 339.36 Indian language and culture education programs areprograms in340.1elementary and secondary schools enrolling American Indian340.2childrendesigned: 340.3 (1) to make the curriculum more relevant to the needs, 340.4 interests, and cultural heritage of American Indian pupils; 340.5 (2) to provide positive reinforcement of the self-image of 340.6 American Indian pupils; and 340.7 (3) to develop intercultural awareness among pupils, 340.8 parents, and staff.Program components may include:340.9instruction in American Indian language, literature, history,340.10and culture; development of support components for staff,340.11including in-service training and technical assistance in340.12methods of teaching American Indian pupils; research projects,340.13including experimentation with and evaluation of methods of340.14relating to American Indian pupils; provision of personal and340.15vocational counseling to American Indian pupils; modification of340.16curriculum, instructional methods, and administrative procedures340.17to meet the needs of American Indian pupils; and establishment340.18of cooperative liaisons with nonsectarian nonpublic, community,340.19tribal or alternative schools offering curricula which reflect340.20American Indian culture.Districts offering programs may make 340.21 contracts for the provision of program components by 340.22 nonsectarian nonpublic, community, tribal or alternative 340.23 schools. These programs may also be provided as components of 340.24 early childhood and family education programs. 340.25 Sec. 28. Minnesota Statutes 1998, section 124D.88, 340.26 subdivision 2, is amended to read: 340.27 Subd. 2. [APPROVAL AUTHORITY; APPLICATION FORMS.]To the340.28extent money is available,The commissioner may approve projects 340.29 from applications submitted under this section. The grant money 340.30 must be used only to design, acquire, construct, expand, 340.31 remodel, improve, furnish, or equip the building or site of a 340.32 magnet school facility according to contracts entered into 340.33 within 24 months after the date on which a grant is awarded. 340.34 Sec. 29. Minnesota Statutes 1998, section 124D.892, is 340.35 amended to read: 340.36 124D.892 [OFFICE OFDESEGREGATION/INTEGRATION.] 341.1 Subdivision 1. [ESTABLISHMENT.] (a)An office of341.2desegregation/integration is established inThedepartment341.3 commissioner of children, families, and learningtomust 341.4 coordinate and support activities related to student enrollment, 341.5 student and staff recruitment and retention, transportation, and 341.6 interdistrict cooperation among metropolitan school districts. 341.7 (b) At the request of a metropolitan school district 341.8 involved in cooperative desegregation/integration efforts, the 341.9officecommissioner shall perform any of the following 341.10 activities: 341.11 (1) assist districts with interdistrict student transfers, 341.12 including student recruitment, counseling, placement, and 341.13 transportation; 341.14 (2) coordinate and disseminate information about schools 341.15 and programs; 341.16 (3) assist districts with new magnet schools and programs; 341.17 (4) assist districts in providing staff development and 341.18 in-service training; and 341.19 (5) coordinate and administer staff exchanges. 341.20 (c) Theofficecommissioner shall collect data on the 341.21 efficacy of districts' desegregation/integration efforts and 341.22 make recommendations based on the data. Theofficecommissioner 341.23 shall periodically consult with the metropolitan council to 341.24 coordinate school desegregation/integration efforts with the 341.25 housing, social, economic, and infrastructure needs of the 341.26 metropolitan area. Theofficecommissioner shall develop a 341.27 process for resolving students' disputes and grievances about 341.28 student transfers under a desegregation/integration plan. 341.29 Subd. 2. [COORDINATION.] The commissioner may request 341.30 information or assistance from, or contract with, any state or 341.31 local agency or officer, local unit of government, or recognized 341.32 expert to assist the commissioner in performing the activities 341.33 described in subdivision 1. 341.34 Subd. 3. [ADVISORY BOARD.] The commissioner shall 341.35 establish an advisory board composed of: 341.36 (1) eight superintendents, each of whom shall be selected 342.1 by the superintendents of the school districts located in whole 342.2 or in part within each of the eight metropolitan districts 342.3 established under section 473.123, subdivision 3c; and 342.4 (2) one person each selected by the Indian affairs council, 342.5 the council on Asian-Pacific Minnesotans, the council on Black 342.6 Minnesotans, and the council on affairs of Chicano/Latino people. 342.7 The advisory board shall advise theofficecommissioner on 342.8 complying with the requirements under subdivision 1. The 342.9 advisory board may solicit comments from teachers, parents, 342.10 students, and interested community organizations and others. 342.11 Sec. 30. Minnesota Statutes 1998, section 124D.894, is 342.12 amended to read: 342.13 124D.894 [STATE MULTICULTURAL EDUCATION ADVISORY 342.14 COMMITTEE.] 342.15 (a) The commissioner shall appoint a state multicultural 342.16 education advisory committee to advise the department and the 342.17 state board on multicultural education. The committee must have 342.18 12 members and be composed of representatives from among the 342.19 following groups and community organizations: African-American, 342.20 Asian-Pacific, Hispanic, and American Indian. 342.21 (b) The state committee shall provide information and 342.22 recommendations on: 342.23 (1) department procedures for reviewing and approving 342.24 district plans and disseminating information on multicultural 342.25 education; 342.26 (2) department procedures for improving inclusive education 342.27 plans, curriculum and instruction improvement plans, and 342.28 performance-based assessments; 342.29 (3) developing learner outcomes which are multicultural; 342.30 and 342.31 (4) other recommendations that will further inclusive, 342.32 multicultural education. 342.33(c) The committee shall also participate in determining the342.34criteria for and awarding the grants established under Laws342.351993, chapter 224, article 8, section 22, subdivision 8.342.36 Sec. 31. Minnesota Statutes 1998, section 124D.94, 343.1 subdivision 2, is amended to read: 343.2 Subd. 2. [CREATION OF FOUNDATION.] There is created the 343.3 Minnesota academic excellence foundation.The purpose of the343.4foundation shall be to promote academic excellence in Minnesota343.5public and nonpublic schools and communities through343.6public-private partnerships.The foundation shall be a 343.7 nonprofit organization. The board of directors of the 343.8 foundation and foundation activities are under the direction of 343.9 the state board of education. 343.10 Sec. 32. Minnesota Statutes 1998, section 124D.94, 343.11 subdivision 4, is amended to read: 343.12 Subd. 4. [FOUNDATION PROGRAMS.] The foundationmayshall 343.13 develop programs that advance the concept of educational 343.14 excellence in Minnesota public and nonpublic schools and 343.15 communities through public-private partnerships.These may343.16include, but are not limited to:343.17(a) recognition programs and awards for students343.18demonstrating academic excellence;343.19(b) summer institute programs for students with special343.20talents;343.21(c) recognition programs for teachers, administrators, and343.22others who contribute to academic excellence;343.23(d) summer mentorship programs with business and industry343.24for students with special career interests and high academic343.25achievements;343.26(e) governor's awards ceremonies and special campaigns to343.27promote awareness and expectation for academic achievement;343.28(f) an academic league to provide organized challenges343.29requiring cooperation and competition for public and nonpublic343.30pupils in elementary and secondary schools;343.31(g) systemic transformation initiatives and assistance and343.32training to community teams to increase school performance in343.33the state's education institutions through strategic quality343.34planning for continuous improvement, empowerment of multiple343.35stakeholders, validation of results via customer-supplier343.36relationships, and a total system approach based on best344.1practices in key process areas; and344.2(h) activities to measure customer satisfaction for344.3delivery of services to education institutions in order to plan344.4for and implement continuous improvement.344.5To the extent possible, the foundation shall make these344.6programs available to students in all parts of the state.344.7 Sec. 33. [REVISOR INSTRUCTION.] 344.8 In the next and subsequent editions of Minnesota Statutes 344.9 and Minnesota Rules, the revisor of statutes shall renumber each 344.10 section of Minnesota Statutes in column A with the number in 344.11 column B. The revisor shall also make necessary cross-reference 344.12 changes consistent with the renumbering. 344.13 A B 344.14 344.15 124D.35 124D.46, subd. 5 344.16 124D.46, subd. 4 268.665, subd. 7 344.17 124D.47, subd. 2 124D.46, subd. 6 344.18 Sec. 34. [REPEALER.] 344.19 (a) Minnesota Statutes 1998, sections 124D.02, subdivisions 344.20 2, 3, and 4; 124D.03, subdivisions 5, 7, 9, and 10; 124D.06; 344.21 124D.07; 124D.081, subdivision 1; 124D.09, subdivisions 2, 8, 344.22 25, and 26; 124D.10, subdivision 13; 124D.115, subdivisions 1 344.23 and 2; 124D.118, subdivision 1; 124D.12; 124D.121; 124D.122; 344.24 124D.123; 124D.124; 124D.125; 124D.126; 124D.127; 124D.128, 344.25 subdivisions 1, 2, 3, 4, 5, and 7; 124D.31; 124D.34, subdivision 344.26 5; 124D.43; 124D.46, subdivision 3; 124D.47, subdivision 1; 344.27 124D.50, subdivisions 1, 2, and 3; 124D.60, subdivision 3; 344.28 124D.65, subdivisions 8, 9, and 10; 124D.68, subdivision 1; 344.29 124D.72; 124D.81, subdivision 7; 124D.88, subdivision 1; 344.30 124D.895; 124D.90, subdivision 5; 124D.91; 124D.92; and 124D.93, 344.31 are repealed. 344.32 (b) Minnesota Statutes 1998, section 124D.128, subdivision 344.33 6, is repealed effective July 1, 2001. 344.34 ARTICLE 17 344.35 EDUCATION AND TECHNOLOGY 344.36 Section 1. Minnesota Statutes 1998, section 125B.05, 344.37 subdivision 1, is amended to read: 344.38 Subdivision 1. [INFORMATION SYSTEM.] The department of 345.1 children, families, and learning shall develop and maintaina345.2computerizedan information system for state information needs. 345.3 Sec. 2. Minnesota Statutes 1998, section 125B.05, 345.4 subdivision 2, is amended to read: 345.5 Subd. 2. [PURPOSES.] The purposes of thecomputerized345.6 information system shall be: 345.7 (a) To provide comparable and accurate educational 345.8 information in a manner which is timely and economical; 345.9 (b) To ensure accountability for state appropriations; 345.10 (c) To collect data to assess the needs of learners and 345.11 children; 345.12 (d) To provide school districts with an educational 345.13 information system capability which will meet school district 345.14 management needs; and 345.15 (e) To provide forcomputerizedanalysis of educational 345.16 information to meet the management needs of the state of 345.17 Minnesota. 345.18 Sec. 3. Minnesota Statutes 1998, section 125B.20, 345.19 subdivision 1, is amended to read: 345.20 Subdivision 1. [ESTABLISHMENT; PURPOSE.]The purpose of345.21developing a statewide school district telecommunications345.22network is to expand the availability of a broad range of345.23courses and degrees to students throughout the state, to share345.24information resources to improve access, quality, and345.25efficiency, to improve learning, and distance cooperative345.26learning opportunities, and to promote the exchange of ideas345.27among students, parents, teachers, media generalists,345.28librarians, and the public. In addition, through the345.29development of this statewide telecommunications network345.30emphasizing cost-effective, competitive connections, all345.31Minnesotans will benefit by enhancing access to345.32telecommunications technology throughout the state. Network345.33connections for school districts and public libraries will be345.34coordinated and fully integrated into the existing state345.35telecommunications and interactive television networks to345.36achieve comprehensive and efficient interconnectivity of school346.1districts and libraries to higher education institutions, state346.2agencies, other governmental units, agencies, and institutions346.3throughout Minnesota. A school district may apply to the346.4commissioner for a grant under subdivision 2, and a regional346.5public library may apply under subdivision 3.The Minnesota 346.6 education telecommunication council established in Laws 1995, 346.7 First Special Session chapter 3, article 12, section 7, shall 346.8 establish priorities for awarding grants, making grant awards, 346.9 and being responsible for the coordination of networks. 346.10 Sec. 4. Minnesota Statutes 1998, section 125B.20, 346.11 subdivision 4, is amended to read: 346.12 Subd. 4. [AWARD OF GRANTS.] The council shall develop 346.13 application forms and procedures for school district minimum 346.14 connectivity grants, enhanced telecommunications grants, and 346.15 regional library telecommunication access grants. The council 346.16 shall select the grant recipientand shall promptly notify any346.17applicant that is found not to be qualified. The commissioner 346.18 shall make the grant payments directly to the school district or 346.19 regional library system. At the request of the district, the 346.20 commissioner may make the grant payment directly to the 346.21 coordinating organization. If appropriations are insufficient 346.22 to fund all applications, the commissioner shall first fully 346.23 fund the minimum connectivity grants.Unsuccessful applicants346.24may reapply for a grant.346.25 Sec. 5. [REPEALER.] 346.26 Minnesota Statutes 1998, sections 125B.02; 125B.07, 346.27 subdivisions 1, 3, and 5; 125B.09; and 125B.11, are repealed. 346.28 ARTICLE 18 346.29 EDUCATION FUNDING 346.30 Section 1. Minnesota Statutes 1998, section 126C.05, 346.31 subdivision 1, is amended to read: 346.32 Subdivision 1. [PUPIL UNIT.] Pupil units for each 346.33 Minnesota resident pupil in average daily membership enrolled in 346.34 the district of residence, in another district under sections 346.35 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 346.36 124D.68; in a charter school under section 124D.10; or for whom 347.1 the resident district pays tuition under section 123A.18, 347.2 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 347.3 subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 347.4 125A.65, shall be counted according to this subdivision. A 347.5 district may not count a person who is over the age of 21, 347.6 except as provided in section 125A.03, or who has graduated from 347.7 high school and is enrolled as a part-time student in a class or 347.8 program as a pupil unit. 347.9 (a) A prekindergarten pupil with a disability who is 347.10 enrolled in a program approved by the commissioner and has an 347.11 individual education plan is counted as the ratio of the number 347.12 of hours of assessment and education service to 825 with a 347.13 minimum of 0.28, but not more than one. 347.14 (b) A prekindergarten pupil who is assessed but determined 347.15 not to be handicapped is counted as the ratio of the number of 347.16 hours of assessment service to 825. 347.17 (c) A kindergarten pupil with a disability who is enrolled 347.18 in a program approved by the commissioner is counted as the 347.19 ratio of the number of hours of assessment and education 347.20 services required in the fiscal year by the pupil's individual 347.21 education program plan to 875, but not more than one. 347.22 (d) A kindergarten pupil who is not included in paragraph 347.23 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 347.24 thereafter. 347.25 (e) A pupil who is in any of grades 1 to 6 is counted as 347.26 1.06 pupil units for fiscal year 1995 and thereafter. 347.27 (f) A pupil who is in any of grades 7 to 12 is counted as 347.28 1.3 pupil units. 347.29 (g) A pupil who is in the post-secondary enrollment options 347.30 program is counted as 1.3 pupil units. 347.31 Sec. 2. Minnesota Statutes 1998, section 126C.31, is 347.32 amended to read: 347.33 126C.31 [POLICY.] 347.34Financing the education of our children is one of state347.35government's most important functions. In performing this347.36function, the state seeks to provide sufficient funding while348.1encouraging equity, accountability, and incentives toward348.2quality improvement. To help achieve these goals and to help348.3control future spending growth,The state will fund core 348.4 instruction and related support services, will facilitate 348.5 improvement inthequalityand delivery of programs and348.6 services, and will equalize revenues raised locally for 348.7 discretionary purposes. 348.8 Sec. 3. Minnesota Statutes 1998, section 126C.48, 348.9 subdivision 8, is amended to read: 348.10 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 348.11 Reductions in levies pursuant to sections 126C.48, subdivision 348.12 1, and 273.138, must be made prior to the reductions in clause 348.13 (2). 348.14 (2)Notwithstanding any other law to the contrary,348.15 Districts which received payments pursuant to sections 298.018; 348.16 298.23 to 298.28, except an amount distributed under section 348.17 298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 348.18 298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 348.19 upon severed mineral values, or recognized revenue pursuant to 348.20 section 477A.15; must not include a portion of these aids in 348.21 their permissible levies pursuant to those sections, but instead 348.22 must reduce the permissible levies authorized by this chapter 348.23 and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A 348.24 by the greater of the following: 348.25 (a) an amount equal to 50 percent of the total dollar 348.26 amount of the payments received pursuant to those sections or 348.27 revenue recognized pursuant to section 477A.15 in the previous 348.28 fiscal year; or 348.29 (b) an amount equal to the total dollar amount of the 348.30 payments received pursuant to those sections or revenue 348.31 recognized pursuant to section 477A.15 in the previous fiscal 348.32 year less the product of the same dollar amount of payments or 348.33 revenue times five percent. 348.34 (3) No reduction pursuant to this subdivision shall reduce 348.35 the levy made by the district pursuant to section 126C.13, to an 348.36 amount less than the amount raised by a levy of a net tax rate 349.1 of 6.82 percent times the adjusted net tax capacity for taxes 349.2 payable in 1990 and thereafter of that district for the 349.3 preceding year as determined by the commissioner. The amount of 349.4 any increased levy authorized by referendum pursuant to section 349.5 126C.17, subdivision 9, shall not be reduced pursuant to this 349.6 subdivision. The amount of any levy authorized by section 349.7 126C.43, to make payments for bonds issued and for interest 349.8 thereon, shall not be reduced pursuant to this subdivision. 349.9 (4) Before computing the reduction pursuant to this 349.10 subdivision of the health and safety levy authorized by sections 349.11 123B.57 and 126C.40, subdivision 5, the commissioner shall 349.12 ascertain from each affected school district the amount it 349.13 proposes to levy under each section or subdivision. The 349.14 reduction shall be computed on the basis of the amount so 349.15 ascertained. 349.16 (5)Notwithstanding any law to the contrary,Any amounts 349.17 received by districts in any fiscal year pursuant to sections 349.18 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 349.19 298.405; or any law imposing a tax on severed mineral values; 349.20 and not deducted from general education aid pursuant to section 349.21 126C.21, subdivision 4, clause (2), and not applied to reduce 349.22 levies pursuant to this subdivision shall be paid by the 349.23 district to the St. Louis county auditor in the following amount 349.24 by March 15 of each year, the amount required to be subtracted 349.25 from the previous fiscal year's general education aid pursuant 349.26 to section 126C.21, subdivision 4, which is in excess of the 349.27 general education aid earned for that fiscal year. The county 349.28 auditor shall deposit any amounts received pursuant to this 349.29 clause in the St. Louis county treasury for purposes of paying 349.30 the taconite homestead credit as provided in section 273.135. 349.31 ARTICLE 19 349.32 STATE ADMINISTRATION OF EDUCATION 349.33 Section 1. Minnesota Statutes 1998, section 127A.05, 349.34 subdivision 1, is amended to read: 349.35 Subdivision 1. [APPOINTMENT AND DUTIES.] The department 349.36 shall be under the administrative control of the commissioner of 350.1 children, families, and learning which office is established. 350.2 The commissioner shall be the secretary of the state board. The 350.3 governor shall appoint the commissioner under the provisions of 350.4 section 15.06. 350.5 The commissioner shall be a person who possesses 350.6 educational attainment and breadth of experience in the 350.7 administration of public education and of the finances 350.8 pertaining thereto commensurate with the spirit and intent of 350.9 this code.Notwithstanding any other law to the contrary, the350.10commissioner may appoint two deputy commissioners who shall350.11serve in the unclassified service.The commissioner shall also 350.12 appoint other employees as may be necessary for the organization 350.13 of the department. The commissioner shall perform such duties 350.14 as the law and the rules of the state board may provide and be 350.15 held responsible for the efficient administration and discipline 350.16 of the department. The commissioner shall make recommendations 350.17 to the board and be charged with the execution of powers and 350.18 duties which the state board may prescribe, from time to time, 350.19 to promote public education in the state, to safeguard the 350.20 finances pertaining thereto, and to enable the state board to 350.21 carry out its duties. 350.22 Sec. 2. Minnesota Statutes 1998, section 127A.05, 350.23 subdivision 3, is amended to read: 350.24 Subd. 3. [GENERAL SUPERVISION OVER PUBLIC SCHOOLS AND 350.25 EDUCATIONAL AGENCIES.] The commissioner of children, families, 350.26 and learning shalladopt goals for andexercise general 350.27 supervision over public schools and other public educational 350.28 agencies in the state, classify and standardize public350.29elementary and secondary schools, and prepare for them outlines350.30and suggested courses of study. The commissioner shall develop350.31a plan to attain the adopted goals. The commissioner may 350.32 recognize educational accrediting agencies for the sole purposes 350.33 of sections 120A.22, 120A.24, and 120A.26. 350.34 Sec. 3. Minnesota Statutes 1998, section 127A.05, 350.35 subdivision 4, is amended to read: 350.36 Subd. 4. [ADMINISTRATIVE RULES.] The commissioner may 351.1 adopt new rules and amend them or amend any existing rules only 351.2 under specific authority.The commissioner may repeal any351.3existing rules.Notwithstanding the provisions of section 351.4 14.05, subdivision 4, the commissioner may grant a variance to 351.5 rules adopted by the commissioner upon application by a school 351.6 district for purposes of implementing experimental programs in 351.7 learning or school management. This subdivision shall not 351.8 prohibit the commissioner from making technical changes or 351.9 corrections to adopted rules. 351.10 Sec. 4. Minnesota Statutes 1998, section 127A.06, is 351.11 amended to read: 351.12 127A.06 [RECOMMENDATIONS; BUDGET.] 351.13The commissioner of children, families, and learning shall351.14recommend to the governor and legislature such modification and351.15unification of laws relating to the state system of education as351.16shall make those laws more readily understood and more effective351.17in execution.The commissioner of children, families, and 351.18 learning shall prepare a biennial education budget which shall 351.19 be submitted to the governor and legislature, such budget to 351.20 contain a complete statement of finances pertaining to the 351.21maintenanceoperations of the state department and to the 351.22 distribution of state aid. 351.23 Sec. 5. Minnesota Statutes 1998, section 127A.41, 351.24 subdivision 7, is amended to read: 351.25 Subd. 7. [SCHEDULE ADJUSTMENTS.](a) It is the intention351.26of the legislature to encourage efficient and effective use of351.27staff and facilities by districts. Districts are encouraged to351.28consider both cost and energy saving measures.351.29(b)Any district operating a program pursuant to sections 351.30 124D.12 to 124D.127, 124D.128, or 124D.25 to 124D.29, or 351.31 operating a commissioner-designated area learning center program 351.32 under section 123A.09, or that otherwise receives the approval 351.33 of the commissioner to operate its instructional program to 351.34 avoid an aid reduction in any year, may adjust the annual school 351.35 schedule for that program throughout the calendar year. 351.36 Sec. 6. Minnesota Statutes 1998, section 127A.42, 352.1 subdivision 2, is amended to read: 352.2 Subd. 2. [VIOLATIONS OF LAW.] The commissionershallmay 352.3 reduce the district'sspecialstate aid for any school year 352.4 whenever the board of the district authorizes or permits 352.5 violations of law within the districtby:. 352.6(1) employing a teacher who does not hold a valid teaching352.7license or permit in a public school;352.8(2) noncompliance with a mandatory rule of general352.9application promulgated by the state board in accordance with352.10statute, unless special circumstances make enforcement352.11inequitable, impose an extraordinary hardship on the district,352.12or the rule is contrary to the district's best interests;352.13(3) the district's continued performance of a contract made352.14for the rental of rooms or buildings for school purposes or for352.15the rental of any facility owned or operated by or under the352.16direction of any private organization, if the contract has been352.17disapproved, the time for review of the determination of352.18disapproval has expired, and no proceeding for review is352.19pending;352.20(4) any practice which is a violation of sections 1 and 2352.21of article 13 of the Constitution of the state of Minnesota;352.22(5) failure to reasonably provide for a resident pupil's352.23school attendance under Minnesota Statutes; or352.24(6) noncompliance with state laws prohibiting352.25discrimination because of race, color, creed, religion, national352.26origin, sex, age, marital status, status with regard to public352.27assistance or disability, as defined in section 363.03.352.28 The reduction must be made in the amount and upon the procedure 352.29 provided in this sectionor, in the case of the violation stated352.30in clause (1), upon the procedure provided in section 127A.43. 352.31 Sec. 7. [REPEALER.] 352.32 Minnesota Statutes 1998, sections 127A.05, subdivision 5; 352.33 and 127A.41, subdivision 4, are repealed. 352.34 ARTICLE 20 352.35 PERPICH CENTER FOR ARTS EDUCATION 352.36 Section 1. Minnesota Statutes 1998, section 129C.10, 353.1 subdivision 3, is amended to read: 353.2 Subd. 3. [POWERS AND DUTIES OF BOARD.] (a) The board has 353.3 the powers necessary for the care, management, and control of 353.4 the Lola and Rudy Perpich Minnesota center for arts education 353.5 and all its real and personal property. The powers shall 353.6 include, but are not limited to, those listed in this 353.7 subdivision. 353.8 (b) The board may employ and discharge necessary employees, 353.9 and contract for other services to ensure the efficient 353.10 operation of the center for arts education. 353.11 (c) The board may receive and award grants. The board may 353.12 establish a charitable foundation and accept, in trust or 353.13 otherwise, any gift, grant, bequest, or devise for educational 353.14 purposes and hold, manage, invest, and dispose of them and the 353.15 proceeds and income of them according to the terms and 353.16 conditions of the gift, grant, bequest, or devise and its 353.17 acceptance. The board must adopt internal procedures to 353.18 administer and monitor aids and grants. 353.19 (d)The board may establish or coordinate evening,353.20continuing education, extension, and summer programs for353.21teachers and pupils.353.22(e) The board may identify pupils who have artistic talent,353.23either demonstrated or potential, in dance, literary arts, media353.24arts, music, theater, and visual arts, or in more than one art353.25form.353.26(f)The board must educate pupils with artistic talent by 353.27 providing: 353.28 (1) an interdisciplinary academic and arts program for 353.29 pupils in the 11th and 12th grades. The total number of pupils 353.30 accepted under this clause and clause (2) shall not exceed 300; 353.31 (2) additional instruction to pupils for a 13th grade. 353.32 Pupils eligible for this instruction are those enrolled in 12th 353.33 grade who need extra instruction and who apply to the board, or 353.34 pupils enrolled in the 12th grade who do not meet learner 353.35 outcomes established by the board; 353.36 (3) intensive arts seminars for one or two weeks for pupils 354.1 in grades 9 to 12; 354.2 (4) summer arts institutes for pupils in grades 9 to 12; 354.3 (5) artist mentor and extension programs in regional sites; 354.4 and 354.5 (6) teacher education programs for indirect curriculum 354.6 delivery. 354.7(g) The board may determine the location for the Lola and354.8Rudy Perpich Minnesota center for arts education and any354.9additional facilities related to the center, including the354.10authority to lease a temporary facility.354.11(h)(e) The board must plan for the enrollment of pupils on 354.12 an equal basis from each congressional district. 354.13(i) The board may establish task forces as needed to advise354.14the board on policies and issues. The task forces expire as354.15provided in section 15.059, subdivision 6.354.16(j) The board may request the commissioner of children,354.17families, and learning for assistance and services.354.18(k) The board may enter into contracts with other public354.19and private agencies and institutions for residential and354.20building maintenance services if it determines that these354.21services could be provided more efficiently and less expensively354.22by a contractor than by the board itself. The board may also354.23enter into contracts with public or private agencies and354.24institutions, school districts or combinations of school354.25districts, or service cooperatives to provide supplemental354.26educational instruction and services.354.27(l) The board may provide or contract for services and354.28programs by and for the center for arts education, including a354.29store, operating in connection with the center; theatrical354.30events; and other programs and services that, in the354.31determination of the board, serve the purposes of the center.354.32(m)(f) The board may provide for transportation of pupils 354.33 to and from the center for arts education for all or part of the 354.34 school year, as the board considers advisable and subject to its354.35rules. Notwithstanding any other law to the contrary,and the 354.36 board may charge a reasonable fee for transportation of pupils. 355.1 Every driver providing transportation of pupils under this 355.2 paragraph must possess all qualifications required by the state 355.3 board of education.The board may contract for furnishing355.4authorized transportation under rules established by the355.5commissioner of children, families, and learning and may355.6purchase and furnish gasoline to a contract carrier for use in355.7the performance of a contract with the board for transportation355.8of pupils to and from the center for arts education. When355.9transportation is provided, scheduling of routes, establishment355.10of the location of bus stops, the manner and method of355.11transportation, the control and discipline of pupils, and any355.12other related matter is within the sole discretion, control, and355.13management of the board.355.14(n)(g) The board may provide room and board for its pupils. 355.15 If the board provides room and board, it shall charge a 355.16 reasonable fee for the room and board. The fee is not subject 355.17 to chapter 14 and is not a prohibited fee according to sections 355.18 123B.34 to 123B.39. 355.19(o)(h) The board may establish and set fees for services 355.20 and programs. If the board sets fees not authorized or 355.21 prohibited by the Minnesota public school fee law, it may do so 355.22 without complying with the requirements of section 123B.38. 355.23(p) The board may apply for all competitive grants355.24administered by agencies of the state and other government or355.25nongovernment sources.