3rd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; providing for general education; special 1.4 education; interagency service; lifelong learning; 1.5 technology; facilities and organization; academic 1.6 excellence; education policy; state agencies; 1.7 appropriating money; amending Minnesota Statutes 1996, 1.8 sections 15.014, subdivision 3; 119B.20, subdivisions 1.9 5, 8, and 12; 120.03, subdivisions 1 and 5; 120.06, 1.10 subdivision 2a; 120.062, subdivision 5; 120.064, 1.11 subdivisions 4, 5, 9, 14, 17, 21, and 24; 120.101, 1.12 subdivisions 3, 7, and 8; 120.102, subdivision 3; 1.13 120.17, subdivisions 1, 2, 3, 3a, 3b, 7a, 9, and 15; 1.14 120.1701, subdivisions 2, 5, 11, and 17; 120.173, 1.15 subdivisions 1 and 6; 120.66, subdivisions 1 and 2; 1.16 120.73, subdivision 1; 120.74, subdivision 1; 121.02, 1.17 subdivision 1; 121.11, subdivision 7d; 121.1115, 1.18 subdivision 1, and by adding a subdivision; 121.14; 1.19 121.148, subdivision 3; 121.16, by adding 1.20 subdivisions; 121.1601, subdivision 2; 121.612, 1.21 subdivisions 2, 3, 6, 7, and 9; 121.908, subdivisions 1.22 2 and 3; 121.932, subdivision 5, and by adding a 1.23 subdivision; 122.23, subdivisions 2b and 6; 123.34, 1.24 subdivision 9; 123.35, subdivision 19a; 123.3514, by 1.25 adding a subdivision; 123.39, subdivision 1, and by 1.26 adding a subdivision; 123.805, subdivision 1; 123.935, 1.27 subdivisions 1 and 2; 124.078; 124.17, subdivision 2; 1.28 124.225, subdivisions 7f and 8m; 124.239, as amended; 1.29 124.248, subdivisions 1 and 1a; 124.26, subdivision 1.30 1c; 124.2613, as amended; 124.2713, subdivision 6a; 1.31 124.2727, subdivisions 6a and 6c; 124.273, by adding a 1.32 subdivision; 124.32, by adding a subdivision; 1.33 124.3201, subdivision 5; 124.646, subdivision 4; 1.34 124.755, subdivision 1; 124.83, subdivision 8; 124.84, 1.35 subdivisions 3 and 4; 124.85, subdivision 4; 124.91, 1.36 subdivisions 2, 4, and 6; 124.95, as amended; 124A.03, 1.37 subdivision 3c; 124A.034, subdivision 2; 124A.036, 1.38 subdivisions 1a, 4, 6, and by adding a subdivision; 1.39 124A.22, by adding a subdivision; 124A.29, subdivision 1.40 1; 124A.292, subdivision 3; 124A.30; 124C.45, 1.41 subdivision 2; 124C.47; 124C.48, by adding a 1.42 subdivision; 125.05, subdivisions 4 and 8; 125.183, 1.43 subdivisions 1 and 3; 125.1885, subdivisions 1, 4, and 1.44 5; 125.191; 126.237; 126.70, subdivision 2a; 127.27, 1.45 subdivision 2; 128A.02, subdivisions 1, 3, 3b, 5, 6, 1.46 and by adding subdivisions; 128A.022; 128A.023, 2.1 subdivisions 1 and 2; 128A.026, subdivisions 1 and 3; 2.2 128A.07, subdivision 2; 169.448, subdivision 2; 2.3 169.451, subdivision 5; 256B.0625, subdivision 26; 2.4 260.131, subdivision 1b; 260.132, subdivision 1; 2.5 260A.05, subdivision 2; 260A.06; 268.665, subdivision 2.6 3; and 471.18; Minnesota Statutes 1997 Supplement, 2.7 sections 16B.465, subdivision 4; 120.05, subdivision 2.8 2; 120.064, subdivisions 3, 8, 10, and 14a; 120.1045, 2.9 subdivision 1; 120.1701, subdivision 3; 121.1113, 2.10 subdivision 1; 121.15, subdivision 6; 121.615, 2.11 subdivisions 2, 6, 7, and 10; 121.904, subdivision 4a; 2.12 124.17, subdivisions 1d, 4, 6, and 7; 124.195, 2.13 subdivision 7; 124.248, subdivisions 2a and 6; 124.26, 2.14 subdivision 2; 124.2601, subdivisions 3 and 6; 2.15 124.2711, subdivision 2a; 124.2713, subdivision 6; 2.16 124.3111, subdivision 2; 124.3201, subdivision 4; 2.17 124.6475; 124.648, subdivision 3; 124.91, subdivisions 2.18 1, 5, and 7, as amended; 124.961; 124A.036, 2.19 subdivision 5; 124A.22, subdivisions 2, 11, and 13b; 2.20 124A.23, subdivision 1; 124A.28, subdivisions 1 and 2.21 1a; 124C.46, subdivisions 1, 2; 125.05, subdivisions 2.22 1c and 2; 126.79, subdivisions 6, 7, 8, and 9; 127.27, 2.23 subdivisions 10 and 11; 127.31, subdivision 15; 2.24 127.32; 127.36, subdivision 1; 127.38; 128A.02, 2.25 subdivision 7; 169.01, subdivision 6; 169.974, 2.26 subdivision 2; 268.665, subdivision 2; and 290.0674, 2.27 subdivision 1; Laws 1992, chapter 499, article 7, 2.28 section 31; Laws 1993, chapter 224, article 3, section 2.29 32; Laws 1997, chapter 157, section 71; Laws 1997, 2.30 First Special Session chapter 4, article 1, section 2.31 61, subdivision 3; article 2, section 51, subdivisions 2.32 15, 25, 29, and 33; article 3, section 25, subdivision 2.33 4; article 4, sections 33, 34, and 35, subdivision 9; 2.34 article 5, section 28, subdivisions 9, 10, 11, and 12; 2.35 article 6, section 20, subdivision 4; article 8, 2.36 section 4, subdivision 3; article 9, section 11; 2.37 article 10, sections 3, subdivision 2; 4, and 5; 2.38 proposing coding for new law in Minnesota Statutes, 2.39 chapters 120; 123; and 124A; repealing Minnesota 2.40 Statutes 1996, sections 121.02, subdivisions 2a, 3, 2.41 and 4; 121.11, subdivisions 5, 7, 7b, 7d, 9, 11, 12, 2.42 and 14; 121.904, subdivision 4c; 124.2601, subdivision 2.43 4; 124.2713, subdivision 6b; 124.2727, subdivision 6b; 2.44 124.32, subdivision 13; 124.491; 124.492; 124.493; 2.45 124.494; 124.4945; 124.4946; 124.495; 124.647; 124.82; 2.46 124.83, subdivisions 4, 5, and 7; 124A.292, 2.47 subdivisions 2 and 4; 124C.55; 124C.56; 124C.57; 2.48 124C.60, subdivision 2; 124C.71; 124C.72; 124C.73; and 2.49 126.12; Minnesota Statutes 1997 Supplement, sections 2.50 120.1015; 121.11, subdivision 7e; 124.155, 2.51 subdivisions 1 and 2; 124.2601, subdivision 5; 2.52 124.825, subdivisions 3 and 4; 124.912, subdivisions 2 2.53 and 3; 124C.60, subdivisions 1 and 3; and 169.452; 2.54 Laws 1997, chapter 231, article 1, section 17; 2.55 Minnesota Rules, part 3525.2750, subpart 1, item B. 2.56 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.57 ARTICLE 1 2.58 GENERAL EDUCATION 2.59 Section 1. Minnesota Statutes 1997 Supplement, section 2.60 121.904, subdivision 4a, is amended to read: 2.61 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 2.62 settlement revenue" means the current, delinquent, and 2.63 manufactured home property tax receipts collected by the county 3.1 and distributed to the school district, including distributions3.2made pursuant to section 279.37, subdivision 7, and excluding3.3the amount levied pursuant to section 124.914, subdivision 1. 3.4 (b) In June of each year, the school district shall 3.5 recognize as revenue, in the fund for which the levy was made, 3.6 the lesser of: 3.7 (1) the May, June, and July school district tax settlement 3.8 revenue received in that calendar year; or 3.9 (2) the sum of:the state aids and credits enumerated in3.10section 124.155, subdivision 2, which are for the fiscal year3.11payable in that fiscal year plus an amount equal to the levy3.12recognized as revenue in June of the prior year plus 31 percent3.13of the amount of the levy certified in the prior calendar year3.14according to section 124A.03, subdivision 2; or3.15(3)(i) 7.0 percent of the lesser of the amount of the3.16general education levy certified in the prior calendar year3.17according to section 124A.23, subdivision 2, or the difference3.18between the amount of the total general fund levy certified in3.19the prior calendar year and the sum of the amounts certified in3.20the prior calendar year according to sections 124A.03,3.21subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1,3.22paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3,3.23paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus3.24(ii) 31 percent of the referendum levy certified in the3.25prior calendar year according to section 124A.03, subdivision 2;3.26plus3.27(iii) the entire amount of the levy certified in the prior3.28calendar year according to sections 124.315, subdivision 4;3.29124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916,3.30subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and3.31124.918, subdivision 6.3.32 (i) for levies authorized before January 1, 1998, 31 3.33 percent of the referendum levy certified in the prior calendar 3.34 year according to section 124A.03, subdivision 2; plus 3.35 (ii) the entire amount of the levy certified in the prior 3.36 calendar year according to sections 124.912, subdivisions 1, 4.1 paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 4.2 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 4.3 124.918, subdivision 6. 4.4(c) In July of each year, the school district shall4.5recognize as revenue that portion of the school district tax4.6settlement revenue received in that calendar year and not4.7recognized as revenue for the previous fiscal year pursuant to4.8clause (b).4.9(d) All other school district tax settlement revenue shall4.10be recognized as revenue in the fiscal year of the settlement.4.11Portions of the school district levy assumed by the state,4.12including prior year adjustments and the amount to fund the4.13school portion of the reimbursement made pursuant to section4.14273.425, shall be recognized as revenue in the fiscal year4.15beginning in the calendar year for which the levy is payable.4.16 Sec. 2. Minnesota Statutes 1996, section 121.908, 4.17 subdivision 2, is amended to read: 4.18 Subd. 2. Each district shall submit to the commissioner by 4.19AugustSeptember 15 of each yearanunaudited financial 4.20statementdata for the preceding fiscal year.This statement4.21 These financial data shall be submittedon formsin the format 4.22 prescribed by the commissioner. 4.23 Sec. 3. Minnesota Statutes 1996, section 121.908, 4.24 subdivision 3, is amended to read: 4.25 Subd. 3. ByDecember 31November 30 of the calendar year 4.26 of the submission of the unaudited financialstatementdata, the 4.27 district shall provide to the commissionerand state auditor an4.28 audited financial data for the preceding fiscal year. An 4.29 audited financial statement prepared in a form which will allow 4.30 comparison with and correction of material differences in the 4.31 unauditedstatementfinancial data shall be submitted to the 4.32 commissioner and the state auditor by November 30. The audited 4.33 financial statement must also provide a statement of assurance 4.34 pertaining to uniform financial accounting and reporting 4.35 standards compliance and a copy of the management letter 4.36 submitted to the district by the school district's auditor. 5.1 Sec. 4. Minnesota Statutes 1997 Supplement, section 5.2 124.17, subdivision 1d, is amended to read: 5.3 Subd. 1d. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 5.4 revenue pupil units for fiscal year 1998 and thereafter must be 5.5 computed according to this subdivision. 5.6 (a) The compensation revenue concentration percentage for 5.7 each building in a district equals the product of 100 times the 5.8 ratio of: 5.9 (1) the sum of the number of pupils enrolled in the 5.10 building eligible to receive free lunch plus one-half of the 5.11 pupils eligible to receive reduced priced lunch on October 1 of 5.12 the previous fiscal year; to 5.13 (2) the number of pupils enrolled in the building on 5.14 October 1 of the previous fiscal year. 5.15 (b) The compensation revenue pupil weighting factor for a 5.16 building equals the lesser of one or the quotient obtained by 5.17 dividing the building's compensation revenue concentration 5.18 percentage by 80.0. 5.19 (c) The compensation revenue pupil units for a building 5.20 equals the product of: 5.21 (1) the sum of the number of pupils enrolled in the 5.22 building eligible to receive free lunch and one-half of the 5.23 pupils eligible to receive reduced priced lunch on October 1 of 5.24 the previous fiscal year; times 5.25 (2) the compensation revenue pupil weighting factor for the 5.26 building; times 5.27 (3) .60. 5.28 (d) Notwithstanding paragraphs (a) to (c), for charter 5.29 schools and contracted alternative programs in the first year of 5.30 operation, compensation revenue pupil units shall be computed 5.31 using data for the current fiscal year. If the charter school 5.32 or contracted alternative program begins operation after October 5.33 1, compensatory revenue pupil units shall be computed based on 5.34 pupils enrolled on an alternate date determined by the 5.35 commissioner, and the compensation revenue pupil units shall be 5.36 prorated based on the ratio of the number of days of student 6.1 instruction to 170 days. 6.2 (e) The percentages in this subdivision must be based on 6.3 the count of individual pupils and not on a building average or 6.4 minimum. 6.5 (f) For a school district in which the number of pupils 6.6 enrolled on October 1 of the current fiscal year exceeds the 6.7 number of pupils enrolled on October 1 of the previous fiscal 6.8 year by more than ten percent, the compensation revenue pupil 6.9 units for each building equals the product of the compensation 6.10 revenue pupil units according to paragraph (c) times an amount 6.11 equal to the difference between (i) the ratio of the number of 6.12 pupils enrolled in the district on October 1 of the current 6.13 fiscal year to the number of pupils enrolled in the district on 6.14 October 1 of the previous fiscal year and (ii) .10. 6.15 Sec. 5. Minnesota Statutes 1997 Supplement, section 6.16 124.17, subdivision 4, is amended to read: 6.17 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 6.18 enrolled in a learning year program under section 121.585, an 6.19 area learning center under sections 124C.45 and 124C.46,oran 6.20 alternative program approved by the commissioner, or a contract 6.21 alternative program under section 126.22, subdivision 3, 6.22 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 6.23 school year for a secondary student, more than 935 hours in a 6.24 school year for an elementary student, or more than 425 hours in 6.25 a school year for a kindergarten student without a disability, 6.26 that pupil may be counted as more than one pupil in average 6.27 daily membership. The amount in excess of one pupil must be 6.28 determined by the ratio of the number of hours of instruction 6.29 provided to that pupil in excess of: (i) the greater of 1,020 6.30 hours or the number of hours required for a full-time secondary 6.31 pupil in the district to 1,020 for a secondary pupil; (ii) the 6.32 greater of 935 hours or the number of hours required for a 6.33 full-time elementary pupil in the district to 935 for an 6.34 elementary pupil in grades 1 through 6; and (iii) the greater of 6.35 425 hours or the number of hours required for a full-time 6.36 kindergarten student without a disability in the district to 425 7.1 for a kindergarten student without a disability. Hours that 7.2 occur after the close of the instructional year in June shall be 7.3 attributable to the following fiscal year. A kindergarten 7.4 student must not be counted as more than 1.2 pupils in average 7.5 daily membership under this subdivision. 7.6 (b)(i) To receive general education revenue for a pupil in 7.7 an alternative program that has an independent study component, 7.8 a school district must meet the requirements in this paragraph. 7.9 The school district must develop with the pupil a continual 7.10 learning plan for the pupil. A district must allow a minor 7.11 pupil's parent or guardian to participate in developing the 7.12 plan, if the parent or guardian wants to participate. The plan 7.13 must identify the learning experiences and expected outcomes 7.14 needed for satisfactory credit for the year and for graduation. 7.15 The plan must be updated each year. Each school district that 7.16 has a state-approved public alternative program must reserve 7.17 revenue in an amount equal to at least 90 percent of the 7.18 district average general education revenue per pupil unit less 7.19 compensatory revenue per pupil unit times the number of pupil 7.20 units generated by students attending a state-approved public 7.21 alternative program. The amount of reserved revenue available 7.22 under this subdivision may only be spent for program costs 7.23 associated with the state-approved public alternative program. 7.24 Compensatory revenue must be allocated according to section 7.25 124A.28, subdivision 1a. 7.26 (ii) General education revenue for a pupil in an approved 7.27 alternative program without an independent study component must 7.28 be prorated for a pupil participating for less than a full year, 7.29 or its equivalent. Each school district that has a 7.30 state-approved public alternative program must reserve revenue 7.31 in an amount equal to at least 90 percent of the district 7.32 average general education revenue per pupil unit less 7.33 compensatory revenue per pupil unit times the number of pupil 7.34 units generated by students attending a state-approved public 7.35 alternative program. The amount of reserved revenue available 7.36 under this subdivision may only be spent for program costs 8.1 associated with the state-approved public alternative program. 8.2 Compensatory revenue must be allocated according to section 8.3 124A.28, subdivision 1a. 8.4 (iii) General education revenue for a pupil in an approved 8.5 alternative program that has an independent study component must 8.6 be paid for each hour of teacher contact time and each hour of 8.7 independent study time completed toward a credit or graduation 8.8 standards necessary for graduation. Average daily membership 8.9 for a pupil shall equal the number of hours of teacher contact 8.10 time and independent study time divided by 1,020. 8.11 (iv) For an alternative program having an independent study 8.12 component, the commissioner shall require a description of the 8.13 courses in the program, the kinds of independent study involved, 8.14 the expected learning outcomes of the courses, and the means of 8.15 measuring student performance against the expected outcomes. 8.16 Sec. 6. Minnesota Statutes 1997 Supplement, section 8.17 124.17, subdivision 6, is amended to read: 8.18 Subd. 6. [FREE AND REDUCED PRICED LUNCHES.] The 8.19 commissioner shall determine the number of children eligible to 8.20 receive either a free or reduced priced lunch on October 1 each 8.21 year. Children enrolled in a building on October 1 and 8.22 determined to be eligible to receive free or reduced price lunch 8.23 by January 15 of the following year shall be counted as eligible 8.24 on October 1 for purposes of subdivision 1d. The commissioner 8.25 may use federal definitions for these purposes and may adjust 8.26 these definitions as appropriate. The commissioner may adopt 8.27 reporting guidelines to assure accuracy of data counts and 8.28 eligibility. Districts shall use any guidelines adopted by the 8.29 commissioner. 8.30 Sec. 7. Minnesota Statutes 1997 Supplement, section 8.31 124.17, subdivision 7, is amended to read: 8.32 Subd. 7. [LEP PUPIL UNITS.] (a) Limited English 8.33 proficiency pupil units for fiscal year 1998 and thereafter 8.34 shall be determined according to this subdivision. 8.35 (b) The limited English proficiency concentration 8.36 percentage for a district equals the product of 100 times the 9.1 ratio of: 9.2 (1) the number of pupils of limited English proficiency 9.3 enrolled in the district during the current fiscal year; to 9.4 (2) the number of pupils in average daily membership 9.5 enrolled in the district. 9.6 (c) The limited English proficiency pupil units for each 9.7 pupil enrolled in a program for pupils of limited English 9.8 proficiency in accordance with sections 126.261 to 126.269 9.9 equals the lesser of one or the quotient obtained by dividing 9.10 the limited English proficiency concentration percentage for the 9.11 pupil's district of enrollment by 11.5. 9.12 (d) Limited English proficiency pupil units shall be 9.13 counted by the district of enrollment. 9.14 (e) Notwithstanding paragraph (d), for the purposes of this 9.15 subdivision, pupils enrolled in a cooperative or intermediate 9.16 school district shall be counted by the district of residence. 9.17 Sec. 8. Minnesota Statutes 1997 Supplement, section 9.18 124.195, subdivision 7, is amended to read: 9.19 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 9.20 fiscal year state general fund payments for a district 9.21 nonoperating fund shall be made at 90 percent of the estimated 9.22 entitlement during the fiscal year of the entitlement. This 9.23 amount shall be paid in 12 equal monthly installments. The 9.24 amount of the actual entitlement, after adjustment for actual 9.25 data, minus the payments made during the fiscal year of the 9.26 entitlement shall be paid prior to October 31 of the following 9.27 school year. The commissioner may make advance payments of debt 9.28 service equalization aid or homestead and agricultural credit 9.29 aid for a district's debt service fund earlier than would occur 9.30 under the preceding schedule if the district submits evidence 9.31 showing a serious cash flow problem in the fund. The 9.32 commissioner may make earlier payments during the year and, if 9.33 necessary, increase the percent of the entitlement paid to 9.34 reduce the cash flow problem. 9.35 Sec. 9. Minnesota Statutes 1996, section 124.248, 9.36 subdivision 1, is amended to read: 10.1 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 10.2 education revenue shall be paid to a charter school as though it 10.3 were a school district. The general education revenue for each 10.4 pupil unit is the state average general education revenue per 10.5 pupil unit minus$170an amount equal to the product of the 10.6 formula allowance according to section 124A.22, subdivision 2, 10.7 times .0485, calculated withoutcompensatorybasic skills 10.8 revenue, transportation sparsity revenue, and the transportation 10.9 portion of the transition revenue adjustment, pluscompensatory10.10 basic skills revenue as though the school were a school district. 10.11 Sec. 10. Minnesota Statutes 1996, section 124.248, 10.12 subdivision 1a, is amended to read: 10.13 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 10.14 shall be paid to a charter school that provides transportation 10.15 services according to section 120.064, subdivision 15, according 10.16 to this subdivision. Transportation aid shall equal 10.17 transportation revenue. 10.18(a)In addition to the revenue under subdivision 1, a 10.19 charter school providing transportation services shall receive 10.20 general education aid for each pupil unit equal to the sum of 10.21$170an amount equal to the product of the formula allowance 10.22 according to section 124A.22, subdivision 2, times .0485, plus 10.23 the transportation sparsity allowance for the school district in 10.24 which the charter school is located, plus the transportation 10.25 transition allowance for the school district in which the 10.26 charter school is located. 10.27(b) For the first two years that a charter school is10.28providing transportation services, the special programs10.29transportation revenue equals the charter school's actual cost10.30in the current school year for transportation services for10.31children with disabilities under section 124.223, subdivisions10.324, 5, 7, and 8. For the third year of transportation services10.33and later fiscal years, the special programs transportation10.34revenue shall be computed according to section 124.225,10.35subdivision 14.10.36 Sec. 11. Minnesota Statutes 1997 Supplement, section 11.1 124.248, subdivision 2a, is amended to read: 11.2 Subd. 2a. [BUILDING LEASE AID.] When a charter school 11.3 finds it economically advantageous to rent or lease a building 11.4 or land for any instructional purposes and it determines that 11.5 the total operating capital revenue under section 124A.22, 11.6 subdivision 10, is insufficient for this purpose, it may apply 11.7 to the commissioner for building lease aid for this purpose. 11.8 Criteria for aid approval and revenue uses shall be as defined 11.9 for the building lease levy in section 124.91, subdivision 1, 11.10 paragraphs (a) and (b). The amount of building lease aid per 11.11 pupil unit served for a charter school for any year shall not 11.12 exceed the lesser of (a) 80 percent of the approved cost or (b) 11.13 the product of theactualpupil units served for the current 11.14 school year times the sum of the state average debt redemption 11.15 fund revenue plus capital revenue, according to section 124.91, 11.16 peractualpupil unit served for the current fiscal year. 11.17 Sec. 12. Minnesota Statutes 1997 Supplement, section 11.18 124.248, subdivision 6, is amended to read: 11.19 Subd. 6. [START-UP COSTS.] During the first two years of a 11.20 charter school's operation, the charter school is eligible for 11.21 aid to pay for start-up costs and additional operating costs. 11.22 Start-up cost aid equals the greater of: 11.23 (1) $50,000 per charter school; or 11.24 (2) $500 times the charter school's pupil units served for 11.25 that year. 11.26 Sec. 13. Minnesota Statutes 1997 Supplement, section 11.27 124.2601, subdivision 3, is amended to read: 11.28 Subd. 3. [REVENUEAID.] Adult basic educationrevenueaid 11.29 for each approved program equals 65 percent of the general 11.30 education formula allowance times the number of full-time 11.31 equivalent students in its adult basic education program. 11.32 Sec. 14. Minnesota Statutes 1997 Supplement, section 11.33 124.2601, subdivision 6, is amended to read: 11.34 Subd. 6. [AID GUARANTEE.](a) For fiscal year 1994, any11.35adult basic education program that receives less state aid under11.36subdivisions 3 and 7 than from the aid formula for fiscal year12.11992 shall receive the amount of aid it received in fiscal year12.21992.12.3(b) For 1995, 1996, and 1997 fiscal years, an adult basic12.4education program that receives aid shall receive at least the12.5amount of aid it received in fiscal year 1992 under subdivisions12.63 and 7, plus aid equal to the amount of revenue that would have12.7been raised for taxes payable in 1994 under Minnesota Statutes12.81992, section 124.2601, subdivision 4, minus the amount raised12.9under subdivision 4.12.10(c)For fiscal year 1998, any adult basic education program 12.11 that receives less state aid than in fiscal year 1997 shall 12.12 receive additional aid equal to 80 percent of the difference 12.13 between its 1997 aid and the amount of aid under section 12.14 124.2601, subdivision 5. For fiscal year 1999 and later, 12.15 additional aid under this paragraphmust be reduced by 2012.16percent each yearequals 80 percent of the additional aid 12.17 computed for fiscal year 1998. For fiscal year 2000, the 12.18 additional aid under this paragraph equals 60 percent of the 12.19 additional aid computed for fiscal year 1998. For fiscal year 12.20 2001, the additional aid under this paragraph equals 40 percent 12.21 of the additional aid computed for fiscal year 1998. For fiscal 12.22 year 2002, the additional aid under this paragraph equals 20 12.23 percent of the additional aid computed for fiscal year 1998. 12.24 For fiscal year 2003 and later, the additional aid under this 12.25 paragraph equals zero. 12.26 Sec. 15. Minnesota Statutes 1997 Supplement, section 12.27 124.2711, subdivision 2a, is amended to read: 12.28 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 12.29 obtain early childhood family education revenue, a district may 12.30 levy an amount equal to the tax rate of.653.45 percent times 12.31 the adjusted tax capacity of the district for the year preceding 12.32 the year the levy is certified. If the amount of the early 12.33 childhood family education levy would exceed the early childhood 12.34 family education revenue, the early childhood family education 12.35 levy shall equal the early childhood family education revenue. 12.36 Sec. 16. Minnesota Statutes 1997 Supplement, section 13.1 124.2713, subdivision 6, is amended to read: 13.2 Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community 13.3 education revenue, a district may levy the amount raised by a 13.4 tax rate of1.09.41 percent times the adjusted net tax capacity 13.5 of the district. If the amount of the community education levy 13.6 would exceed the community education revenue, the community 13.7 education levy shall be determined according to subdivision 6a. 13.8 Sec. 17. Minnesota Statutes 1996, section 124.2713, 13.9 subdivision 6a, is amended to read: 13.10 Subd. 6a. [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 13.11 FORMULA.] If the amount of the community education levy for a 13.12 district exceeds the district's community education revenue, the 13.13 amount of the community education levy is limited tothe sum of:13.14(1)the district's community education revenue according to 13.15 subdivision 1; plus. 13.16(2) the amount of the aid reduction for the same fiscal13.17year according to subdivision 6b.13.18For purposes of statutory cross-reference, a levy made13.19according to this subdivision is the levy made according to13.20subdivision 6.13.21 Sec. 18. Minnesota Statutes 1996, section 124.2727, 13.22 subdivision 6a, is amended to read: 13.23 Subd. 6a. [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] 13.24 A district's cooperation revenue for fiscal year 1999 is equal 13.25 to the greater of $67 times the actual pupil units or $25,000. 13.26 Sec. 19. Minnesota Statutes 1996, section 124.2727, 13.27 subdivision 6c, is amended to read: 13.28 Subd. 6c. [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A 13.29 district's cooperation aid for fiscal year 1999 is the 13.30 difference between its district cooperation revenue and its 13.31 district cooperation levy. If a district does not levy the 13.32 entire amount permitted, aid must be reduced in proportion to 13.33 the actual amount levied. 13.34 Sec. 20. Minnesota Statutes 1996, section 124.273, is 13.35 amended by adding a subdivision to read: 13.36 Subd. 8. [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 14.1 purposes of this section and section 124.321, pupils of limited 14.2 English proficiency enrolled in a cooperative or intermediate 14.3 school district unit shall be counted by the school district of 14.4 residence, and the cooperative unit shall allocate its approved 14.5 expenditures for limited English proficiency programs among 14.6 participating school districts. Limited English proficiency aid 14.7 for services provided by a cooperative or intermediate school 14.8 district shall be paid to the participating school districts. 14.9 Sec. 21. Minnesota Statutes 1996, section 124.85, 14.10 subdivision 4, is amended to read: 14.11 Subd. 4. [DISTRICT ACTION.] A district may enter into a 14.12 guaranteed energy savings contract with a qualified provider if, 14.13 after review of the report and the commissioner's evaluation if 14.14 requested, the board finds that the amount it would spend on the 14.15 energy conservation measures recommended in the report is not 14.16 likely to exceed the amount to be saved in energy and operation 14.17 costs over 15 years from the date of installation if the 14.18 recommendations in the report were followed, and the qualified 14.19 provider provides a written guarantee that the energy or 14.20 operating cost savings will meet or exceed the costs of the 14.21 system. The guaranteed energy savings contract may provide for 14.22 payments over a period of time, not to exceed 15 years. 14.23 Notwithstanding section 121.912, a district annually may 14.24 transfer from the general fund to thecapital expenditure fund14.25 reserve for operating capital account an amount up to the amount 14.26 saved in energy and operation costs as a result of guaranteed 14.27 energy savings contracts. 14.28 Sec. 22. Minnesota Statutes 1996, section 124.3201, 14.29 subdivision 5, is amended to read: 14.30 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 14.31 A school district's special education revenue for fiscal year 14.32 1996 and later equals the state total special education revenue, 14.33 minus the amount determined under paragraph (b), times the ratio 14.34 of the district's adjusted special education base revenue to the 14.35 state total adjusted special education base revenue. If the 14.36 state board of education modifies its rules for special 15.1 education in a manner that increases a school district's special 15.2 education obligations or service requirements, the commissioner 15.3 of children, families, and learning shall annually increase each 15.4 district's special education revenue by the amount necessary to 15.5 compensate for the increased service requirements. The 15.6 additional revenue equals the cost in the current year 15.7 attributable to rule changes not reflected in the computation of 15.8 special education base revenue, multiplied by the appropriate 15.9 percentages from subdivision 2. 15.10 (b) Notwithstanding paragraph (a), if the special education 15.11 base revenue for a district equals zero, the special education 15.12 revenue equals the amount computed according to subdivision 2 15.13 using current year data. 15.14 (c) Notwithstanding paragraphs (a) and (b), if the special 15.15 education base revenue for a district is greater than zero, and 15.16 the base year amount for the district under subdivision 2, 15.17 paragraph (a), clause (7), equals zero, the special education 15.18 revenue equals the sum of the amount computed according to 15.19 paragraph (a), plus the amount computed according to subdivision 15.20 2, paragraph (a), clause (7), using current year data. 15.21 Sec. 23. Minnesota Statutes 1996, section 124A.03, 15.22 subdivision 3c, is amended to read: 15.23 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] (a) For fiscal 15.24 year 1998and later, a district's referendum allowance for 15.25 referendum authority under subdivision 1c is reduced as provided 15.26 in thissubdivisionparagraph. 15.27(a)(1) For referendum revenue authority approved before 15.28 June 1, 1996, and effective for fiscal year 1997, the reduction 15.29 equals the amount of the reduction computed for fiscal year 1997 15.30 under subdivision 3b. 15.31(b)(2) For referendum revenue authority approved before 15.32 June 1, 1996, and effective beginning in fiscal year 1998, the 15.33 reduction equals the amount of the reduction computed for fiscal 15.34 year 1998 under subdivision 3b. 15.35 (b) For fiscal year 1999 and later, a district's referendum 15.36 allowance for referendum authority under subdivision 1c equals 16.1 the amount of the reduction computed for fiscal year 1998 under 16.2 paragraph (a) times the lesser of one or the ratio of the 16.3 referendum allowance for the district to the amount determined 16.4 in subdivision 1c, clause (2), for fiscal year 1999. 16.5 (c) For referendum revenue authority approved after May 31, 16.6 1996, there is no reduction. 16.7 (d) For districts with more than one referendum authority, 16.8 the reduction shall be computed separately for each authority. 16.9 The reduction shall be applied first to authorities levied 16.10 against tax capacity, and then to authorities levied against 16.11 referendum market value. For districts with more than one 16.12 authority levied against net tax capacity or against referendum 16.13 market value, the referendum allowance reduction shall be 16.14 applied first to the authority with the earliest expiration date. 16.15 (e) When referendum authority approved before June 1, 1996, 16.16 expires, the referendum allowance reduction for a district shall 16.17 be decreased by the amount of the decline in the district's 16.18 total referendum allowance under subdivision 1c. For districts 16.19 with more than one referendum authority remaining after the 16.20 expiration, the amount of any remaining allowance reduction 16.21 shall be reallocated among the remaining referendum authority 16.22 approved before June 1, 1996, according to paragraph (d). 16.23 (f) For a newly reorganized district created after July 1, 16.24 1996, the referendum revenue reduction equals the lesser of the 16.25 amount calculated for the combined district, or the sum of the 16.26 amounts by which each of the reorganizing district's 16.27 supplemental revenue reduction exceeds its respective 16.28 supplemental revenue allowances calculated for the year 16.29 preceding the year of reorganization. 16.30 Sec. 24. Minnesota Statutes 1997 Supplement, section 16.31 124A.036, subdivision 5, is amended to read: 16.32 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 16.33 education aid for districts must be adjusted for each pupil 16.34 attending a nonresident district under sections 120.062, 16.35 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 16.36 The adjustments must be made according to this subdivision. 17.1 (a) General education aid paid to a resident district must 17.2 be reduced by an amount equal to the general education revenue 17.3 exclusive ofcompensatorybasic skills revenue attributable to 17.4 the pupil in the resident district. 17.5 (b) General education aid paid to a district serving a 17.6 pupil in programs listed in this subdivision shall be increased 17.7 by an amount equal to the general education revenue exclusive of 17.8compensatorybasic skills revenue attributable to the pupil in 17.9 the nonresident district. 17.10 (c) If the amount of the reduction to be made from the 17.11 general education aid of the resident district is greater than 17.12 the amount of general education aid otherwise due the district, 17.13 the excess reduction must be made from other state aids due the 17.14 district. 17.15 (d) The district of residence shall pay tuition to a 17.16 district or an area learning center, operated according to 17.17 paragraph (e), providing special instruction and services to a 17.18 pupil with a disability, as defined in section 120.03, or a 17.19 pupil, as defined in section 120.181, who is enrolled in a 17.20 program listed in this subdivision. The tuition shall be equal 17.21 to (1) the actual cost of providing special instruction and 17.22 services to the pupil, including a proportionate amount for debt 17.23 service and for capital expenditure facilities and equipment, 17.24 and debt service but not including any amount for 17.25 transportation, minus (2) the amount of general education aid 17.26 and special education aid, attributable to that pupil, that is 17.27 received by the district providing special instruction and 17.28 services. 17.29 (e) An area learning center operated by a service 17.30 cooperative, intermediate district, education district, or a 17.31 joint powers cooperative may elect through the action of the 17.32 constituent boards to charge tuition for pupils rather than to 17.33 calculate general education aid adjustments under paragraph (a), 17.34 (b), or (c). The tuition must be equal to the greater of the 17.35 average general education revenue per pupil unit attributable to 17.36 the pupil, or the actual cost of providing the instruction, 18.1 excluding transportation costs, if the pupil meets the 18.2 requirements of section 120.03 or 120.181. 18.3 Sec. 25. Minnesota Statutes 1996, section 124A.036, 18.4 subdivision 6, is amended to read: 18.5 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 18.6 for districts must be adjusted for each pupil attending a 18.7 charter school under section 120.064. The adjustments must be 18.8 made according to this subdivision. 18.9 (b) General education aid paid to a resident district must 18.10 be reduced by an amount equal to the general education revenue 18.11 exclusive ofcompensatorybasic skills revenue. 18.12 (c) General education aid paid to a district in which a 18.13 charter school not providing transportation according to section 18.14 120.064, subdivision 15, is located shall be increased by an 18.15 amount equal to the product of: (1) the sum of$170an amount 18.16 equal to the product of the formula allowance according to 18.17 section 124A.22, subdivision 2, times .0485, plus the 18.18 transportation sparsity allowance for the district, plus the 18.19 transportation transition allowance for the district; times (2) 18.20 the pupil units attributable to the pupil. 18.21 (d) If the amount of the reduction to be made from the 18.22 general education aid of the resident district is greater than 18.23 the amount of general education aid otherwise due the district, 18.24 the excess reduction must be made from other state aids due the 18.25 district. 18.26 Sec. 26. Minnesota Statutes 1996, section 124A.22, is 18.27 amended by adding a subdivision to read: 18.28 Subd. 2b. [WAIVER.] A district receiving less than an 18.29 inflationary increase as determined by the Consumer Price Index, 18.30 in revenue per pupil in average daily membership, excluding 18.31 capital bond proceeds, in the current biennium over the previous 18.32 biennium is exempt from compliance with state statutes and rules 18.33 applicable to schools and school districts until the district 18.34 receives an increase in revenue per pupil in average daily 18.35 membership equal to or greater than the rate of inflation. An 18.36 exempted school district must comply with the requirements for 19.1 charter schools in section 120.064, subdivisions 8 and 10. An 19.2 exempted district must comply with chapter 179A, and sections 19.3 125.12 and 125.17. 19.4 Sec. 27. Minnesota Statutes 1997 Supplement, section 19.5 124A.22, subdivision 2, is amended to read: 19.6 Subd. 2. [BASIC REVENUE.] The basic revenue for each 19.7 district equals the formula allowance times the actual pupil 19.8 units for the school year. The formula allowance for fiscal 19.9 year 1997 is $3,505. The formula allowance for fiscal year 1998 19.10 is $3,581 and the formula allowance for fiscal year 1999and19.11subsequent fiscal yearsis $3,530. The formula allowance for 19.12 fiscal year 2000 and subsequent fiscal years is $3,597. 19.13 Sec. 28. Minnesota Statutes 1997 Supplement, section 19.14 124A.22, subdivision 13b, is amended to read: 19.15 Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's 19.16 transportation transition allowance for fiscal year 1998 and 19.17 later equals the result of the following: 19.18 (1) if the result in subdivision 13a, paragraph (a), clause 19.19 (iii), for fiscal year 1998 is less than the fiscal year 1996 19.20 base allowance, the transportation transition allowance equals 19.21 the fiscal year 1996 base allowance minus the result in 19.22 subdivision 13a, paragraph (a), clause (iii); or 19.23 (2) if the result in subdivision 13a, paragraph (a), clause 19.24 (iii), for fiscal year 1998 and later is greater than or equal 19.25 to the fiscal year 1996 base allowance, the transportation 19.26 transition allowance equals zero. 19.27 (b)For fiscal years 1997 and 1998, a district's training19.28and experience transition allowance is equal to the training and19.29experience revenue the district would have received under19.30Minnesota Statutes 1994, section 124A.22, subdivision 4, divided19.31by the actual pupil units for fiscal year 1997 minus $130. For19.32fiscal year 1999 and later, a district's training and experience19.33transition allowance equals zero.19.34If the training and experience transition allowance is less19.35than zero, the reduction shall be determined according to the19.36following schedule:20.1(1) for fiscal year 1997, the reduction is equal to .920.2times the amount initially determined;20.3(2) for fiscal year 1998, the reduction is equal to .7520.4times the amount initially determined; and20.5(c)A district'stransitioncompensatory transition 20.6 allowance equals the greater of zero or the difference between: 20.7 (1) the amount of compensatory revenue the district would 20.8 have received under subdivision 3 for fiscal year 1998 computed 20.9 using a basic formula allowance of $3,281; and 20.10 (2) the amount the district receives under subdivision 3; 20.11 divided by 20.12 (3) the district's actual pupil units for fiscal year 1998. 20.13 (c) A district's cooperation transition allowance for 20.14 fiscal year 2000 and later equals the greater of zero or the 20.15 difference between: 20.16 (1) $25,000; and 20.17 (2) $67 times the district's actual pupil units for fiscal 20.18 year 2000. 20.19 (d)A district's transition allowance for fiscal year 199820.20is equal to the sum of its transportation transition allowance,20.21its training and experience transition allowance, and its20.22transition compensatory allowance.A district's transition 20.23 allowance for fiscal year 1999and thereafteris equal to the 20.24 sum of its transportation transition allowance and its 20.25transitioncompensatory transition allowance. A district's 20.26 transition allowance for fiscal year 2000 and thereafter is 20.27 equal to the sum of its transportation transition allowance, its 20.28 compensatory transition allowance, and its cooperation 20.29 transition allowance. 20.30 Sec. 29. [124A.226] [RESERVED REVENUE FOR DISTRICT 20.31 COOPERATION.] 20.32 A district that was a member of an intermediate school 20.33 district organized pursuant to chapter 136D on July 1, 1996, 20.34 must place a portion of its general education revenue in a 20.35 reserved account for instructional services from entities formed 20.36 for cooperative services for special education programs and 21.1 secondary vocational programs. The amount reserved is equal to 21.2 the levy made according to Minnesota Statutes 1993, section 21.3 124.2727, subdivision 6, for taxes payable in 1994 divided by 21.4 the actual pupil units in the intermediate school district for 21.5 fiscal year 1995 times the number of actual pupil units in the 21.6 school district in 1995. The district must use 5/11 of the 21.7 revenue for special education and 6/11 of the revenue for 21.8 secondary vocational education. The district must demonstrate 21.9 that the revenue is being used to provide the full range of 21.10 special education and secondary vocational programs and services 21.11 available to each child served by the intermediate. The 21.12 secondary vocational programs and services must meet the 21.13 requirements established in an articulation agreement developed 21.14 between the state board of education and the board of trustees 21.15 of the Minnesota state colleges and universities. 21.16 A district that was a member of an education district 21.17 organized pursuant to section 122.91 on July 1, 1999, must place 21.18 a portion of its general education revenue in a reserve account 21.19 for instructional services from entities formed for cooperative 21.20 services. Services may include secondary vocational programs, 21.21 special education programs, staff development, and gifted and 21.22 talented instruction. The amount reserved is equal to $50 per 21.23 pupil unit times the actual number of pupil units in the 21.24 district. 21.25 Sec. 30. Minnesota Statutes 1997 Supplement, section 21.26 124A.23, subdivision 1, is amended to read: 21.27 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 21.28 commissioner shall establish the general education tax rate by 21.29 July 1 of each year for levies payable in the following year. 21.30 The general education tax capacity rate shall be a rate, rounded 21.31 up to the nearest hundredth of a percent, that, when applied to 21.32 the adjusted net tax capacity for all districts, raises the 21.33 amount specified in this subdivision. The general education tax 21.34 rate shall be the rate that raises$1,359,000,000 for fiscal21.35year 1998 and$1,385,500,000 for fiscal year 1999 21.36 and $1,331,200,000 for fiscal year 2000 and later fiscal years. 22.1 The general education tax rate may not be changed due to changes 22.2 or corrections made to a district's adjusted net tax capacity 22.3 after the tax rate has been established. If the levy target for 22.4 fiscal year19992000 is changed by another law enacted during 22.5 the19971998 session, the commissioner shall reduce the target 22.6 in this bill by the amount of the reduction in the enacted law. 22.7 Sec. 31. Minnesota Statutes 1996, section 124A.292, 22.8 subdivision 3, is amended to read: 22.9 Subd. 3. [STAFF DEVELOPMENT LEVY.] A district's levy 22.10 equalsits revenue times the lesser of one or the ratio of:22.11(1) the quotient derived by dividing the district's22.12adjusted net tax capacity for the year before the year the levy22.13is certified by the district's actual pupil units for the school22.14year to which the levy is attributable, to22.15(2) the equalizing factor for the school year to which the22.16levy is attributablethe number of teachers at the site times 22.17 $8.15. 22.18 Sec. 32. Minnesota Statutes 1997 Supplement, section 22.19 124A.28, subdivision 1, is amended to read: 22.20 Subdivision 1. [USE OF THE REVENUE.] The compensatory 22.21 education revenue under section 124A.22, subdivision 3, and the 22.22 portion of the transition revenue adjustment under section 22.23 124A.22, subdivision 13c, attributable to the compensatory 22.24 transition allowance under section 124A.22, subdivision 13b, 22.25 paragraph (b), must be used to meet the educational needs of 22.26 pupils who enroll under-prepared to learn and whose progress 22.27 toward meeting state or local content or performance standards 22.28 is below the level that is appropriate for learners of their 22.29 age. Any of the following may be provided to meet these 22.30 learners' needs: 22.31 (1) direct instructional services under the assurance of 22.32 mastery program according to section 124.3111; 22.33 (2) remedial instruction in reading, language arts, 22.34 mathematics, other content areas, or study skills to improve the 22.35 achievement level of these learners; 22.36 (3) additional teachers and teacher aides to provide more 23.1 individualized instruction to these learners through individual 23.2 tutoring, lower instructor-to-learner ratios, or team teaching; 23.3 (4) a longer school day or week during the regular school 23.4 year or through a summer program that may be offered directly by 23.5 the site or under a performance-based contract with a 23.6 community-based organization; 23.7 (5) comprehensive and ongoing staff development consistent 23.8 with district and site plans according to section 126.70, for 23.9 teachers, teacher aides, principals, and other personnel to 23.10 improve their ability to identify the needs of these learners 23.11 and provide appropriate remediation, intervention, 23.12 accommodations, or modifications; 23.13 (6) instructional materials and technology appropriate for 23.14 meeting the individual needs of these learners; 23.15 (7) programs to reduce truancy, encourage completion of 23.16 high school, enhance self-concept, provide health services, 23.17 provide nutrition services, provide a safe and secure learning 23.18 environment, provide coordination for pupils receiving services 23.19 from other governmental agencies, provide psychological services 23.20 to determine the level of social, emotional, cognitive, and 23.21 intellectual development, and provide counseling services, 23.22 guidance services, and social work services; 23.23 (8) bilingual programs, bicultural programs, and programs 23.24 for learners of limited English proficiency; 23.25 (9) all day kindergarten; 23.26 (10) extended school day and extended school year programs; 23.27 (11) substantial parent involvement in developing and 23.28 implementing remedial education or intervention plans for a 23.29 learner, including learning contracts between the school, the 23.30 learner, and the parent that establish achievement goals and 23.31 responsibilities of the learner and the learner's parent or 23.32 guardian; and 23.33 (12) other methods to increase achievement, as needed. 23.34 Sec. 33. Minnesota Statutes 1997 Supplement, section 23.35 124A.28, subdivision 1a, is amended to read: 23.36 Subd. 1a. [BUILDING ALLOCATION.] A district must allocate 24.1 revenue to each school building in the district where the 24.2 children who have generated the revenue are served. For the 24.3 purposes of this section and section 124.17, subdivision 1d, 24.4 "building" means education site as defined in section 123.951, 24.5 subdivision 1. 24.6 If the pupil is served at a site other than one owned and 24.7 operated by the district, the revenue shall be paid to the 24.8 district and used for services for pupils who generate the 24.9 revenue. 24.10 Sec. 34. Minnesota Statutes 1996, section 124A.30, is 24.11 amended to read: 24.12 124A.30 [STATEWIDE AVERAGE REVENUE.] 24.13 By October 1 of each year the commissioner shall estimate 24.14 the statewide average adjusted generaleducationrevenue per 24.15 actual pupil unit and therangedisparity in adjusted general 24.16educationrevenue among pupils and districts by computingthe24.17difference between the fifth andthe ratio of the ninety-fifth 24.18percentilespercentile to the fifth percentile of adjusted 24.19 generaleducationrevenue. The commissioner must provide that 24.20 information to all school districts. 24.21 If the disparity in adjusted generaleducationrevenue as 24.22 measured by thedifference between the fifth andratio of the 24.23 ninety-fifthpercentilespercentile to the fifth percentile 24.24 increases in any year, the commissionermust propose ashall 24.25 recommend to the legislature options for change in the general 24.26 education formula that will limit the disparity in adjusted 24.27 generaleducationrevenue to no more than the disparity for the 24.28 previous school year. The commissioner must submit theproposal24.29 recommended options to the education committees of the 24.30 legislature by January 15. 24.31 For purposes of this section, adjusted general revenue 24.32 means the sum of basic revenue under section 124A.22, 24.33 subdivision 2; supplemental revenue under section 124A.22, 24.34 subdivisions 8 and 9; transition revenue under section 124.22, 24.35 subdivision 13c; and referendum revenue under section 124A.03. 24.36 Sec. 35. Laws 1997, First Special Session chapter 4, 25.1 article 1, section 61, subdivision 3, is amended to read: 25.2 Subd. 3. [EQUALIZING FACTORS.] The commissioner shall 25.3 adjust each equalizing factor established using adjusted net tax 25.4 capacity per actual pupil unit under Minnesota Statutes, 25.5 chapters 124 and 124A, by dividing the equalizing factor by the 25.6 ratio of the statewide tax capacity as calculated using the 25.7 class rates in effect for assessment year 1996 to the statewide 25.8 tax capacity using the class rates for that assessment year. 25.9 Sec. 36. Laws 1992, chapter 499, article 7, section 31, is 25.10 amended to read: 25.11 Sec. 31. [REPEALER.] 25.12 Minnesota Statutes 1990, sections 124A.02, subdivision 24; 25.13 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 25.14 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 25.15 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 25.16 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 25.17 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 25.18 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 25.19 1; and 124A.29, subdivision 1, are repealed effective June 30, 25.2019992000; Laws 1991, chapter 265, article 7, section 35, is 25.21 repealed. 25.22 Sec. 37. [BUS LEVY.] 25.23 Subdivision 1. [MAHTOMEDI.] In addition to other levies, 25.24 independent school district No. 832, Mahtomedi, a district that 25.25 was in statutory operating debt, according to Minnesota 25.26 Statutes, section 121.914, subdivisions 1 and 2, may levy an 25.27 amount up to $110,000 for the purchase of four type III school 25.28 buses. This amount may be levied over a period of three years. 25.29 Subd. 2. [KASSON-MANTORVILLE.] In addition to other 25.30 levies, independent school district No. 204, Kasson-Mantorville, 25.31 may levy an amount up to $157,100 for the deficit that occurred 25.32 in the capital equipment fund when a prior bus purchase was 25.33 delayed and paid for after June 30, 1996. 25.34 Sec. 38. [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 25.35 Notwithstanding Minnesota Statutes, section 124.17, 25.36 subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 26.1 only, compensation revenue pupil units for buildings with no 26.2 free or reduced price lunch counts for fiscal year 1997 because 26.3 the site did not participate in the national school lunch 26.4 program, or for a contracted alternative program for which no 26.5 count was reported to the department of children, families, and 26.6 learning, shall be computed using data for the current fiscal 26.7 year. 26.8 Sec. 39. [DEFERRED MAINTENANCE PROJECTS.] 26.9 By June 30, 1999, a school district, upon formal board 26.10 resolution and commissioner of children, families, and learning 26.11 approval, may levy for over a five-year period, or issue general 26.12 obligation bonds under this section to finance an amount equal 26.13 to the combined costs of approved maintenance projects, minus 26.14 $200,000. The total amount financed under this section may not 26.15 exceed $60 per resident pupil unit for the year the bonds are 26.16 issued or the levy is approved. Districts may only finance, 26.17 under this section, costs related to an approved facility plan 26.18 under Minnesota Statutes, section 124.239, subdivision 2. 26.19 Districts must comply with Minnesota Statutes, chapter 475, 26.20 except Minnesota Statutes, sections 475.58 and 475.59. The 26.21 authority to issue bonds under this section is in addition to 26.22 any bonding authority authorized by law. The bonds must be 26.23 payable in not more than five years. A tax levy must be made 26.24 for the payment of the principal and interest on the bonds, in 26.25 accordance with Minnesota Statutes, section 475.61. Districts 26.26 must submit projects to the commissioner for review by September 26.27 30, 1998. Projects financed under this section are not eligible 26.28 for facilities equalization revenue under Minnesota Statutes, 26.29 section 124.95. 26.30 Sec. 40. [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR 26.31 TRANSITION.] 26.32 For fiscal year 1999 only, the supplemental compensatory 26.33 revenue for each school district equals: the sum of the number 26.34 of pupils enrolled in the district eligible to receive free 26.35 lunch plus one-half of the pupils eligible to receive reduced 26.36 price lunch on October 1, 1997, times $10. Revenue under this 27.1 section is allocated to school districts, and must be used 27.2 according to Minnesota Statutes, section 124A.28, subdivision 1. 27.3 Sec. 41. [ELMORE LEVY ADJUSTMENT.] 27.4 For property taxes payable in 1999 only, the levy for 27.5 independent school district No. 2860, Blue Earth area, must be 27.6 reduced by an amount equal to the amount levied by independent 27.7 school district No. 219, Elmore, according to Laws 1996, chapter 27.8 412, article 5, section 18, subdivision 2, for taxes payable in 27.9 1997. The levy reduction must be applied against all taxable 27.10 property in preexisting independent school district No. 219, 27.11 Elmore, only. 27.12 Sec. 42. [FISCAL YEAR 1999 REFERENDUM REVENUE AID AND LEVY 27.13 CALCULATIONS.] 27.14 For fiscal year 1999 only, the increase in referendum 27.15 revenue under section 24 must be paid by the department of 27.16 children, families, and learning as state aid. The referendum 27.17 levy for fiscal year 1999 shall be computed according to the 27.18 referendum allowance reduction under Minnesota Statutes 1996, 27.19 section 124A.03, subdivision 3c. 27.20 Sec. 43. [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 27.21 COUNTY CENTRAL; REFERENDUM AUTHORITY.] 27.22 Subdivision 1. [REFERENDUM REVENUE ADJUSTMENT.] 27.23 Notwithstanding Minnesota Statutes, section 124A.03, referendum 27.24 equalization aid for fiscal year 1998 for independent school 27.25 district No. 2862, Jackson County Central, is $72,000, and the 27.26 district's net tax capacity referendum levy is $61,000. 27.27 Subd. 2. [AID ADJUSTMENT.] The department of children, 27.28 families, and learning shall adjust the aid payments for fiscal 27.29 year 1999 to independent school district No. 2862, Jackson 27.30 County Central, according to subdivision 1. 27.31 Subd. 3. [LEVY ADJUSTMENT.] For taxes payable in 1999, the 27.32 department of children, families, and learning shall make a levy 27.33 adjustment for the independent school district No. 2862, Jackson 27.34 County Central, referendum levy authority for fiscal year 1998 27.35 according to subdivision 1. 27.36 Sec. 44. [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.] 28.1 For the purpose of calculating debt service equalization, 28.2 donations for capital improvements received before December 31, 28.3 2000, to independent school district No. 300, La Crescent-Hokah, 28.4 must be considered as part of the percentage that is required to 28.5 be raised locally under Minnesota Statutes, section 124.95, 28.6 subdivision 3. 28.7 Sec. 45. [APPROPRIATIONS.] 28.8 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 28.9 LEARNING.] The sums indicated in this section are appropriated 28.10 from the general fund to the department of children, families, 28.11 and learning for the fiscal years designated. 28.12 Subd. 2. [SHIFT ELIMINATED.] For additional general 28.13 education aid for eliminating the property tax recognition shift 28.14 under this article: 28.15 $90,100,000 ..... 1999 28.16 Notwithstanding the provisions of Minnesota Statutes, 28.17 section 124.195, the commissioner of children, families, and 28.18 learning shall pay the fiscal year 1999 appropriation on June 28.19 20, 1999. 28.20 Subd. 3. [DISTRICT-LEVEL COMPENSATORY REVENUE.] For 28.21 one-time additional district level compensatory revenue: 28.22 $1,916,000 ..... 1999 28.23 Sec. 46. [REPEALER.] 28.24 (a) Minnesota Statutes 1997 Supplement, section 124.912, 28.25 subdivisions 2 and 3, are repealed effective for taxes payable 28.26 in 1998. 28.27 (b) Minnesota Statutes 1996, sections 121.904, subdivision 28.28 4c; and 124.2601, subdivision 4; Minnesota Statutes 1997 28.29 Supplement, section 124.155, subdivisions 1 and 2, are repealed. 28.30 (c) Minnesota Statutes 1997 Supplement, section 124.2601, 28.31 subdivision 5, is repealed effective July 1, 1999. 28.32 (d) Minnesota Statutes 1996, section 124.2713, subdivision 28.33 6b, is repealed effective for taxes payable in 1999 and revenue 28.34 for fiscal year 2000. 28.35 (e) Minnesota Statutes 1996, section 124.2727, subdivision 28.36 6b, is repealed effective for taxes payable in 1999. 29.1 (f) Minnesota Statutes 1996, section 124A.292, subdivisions 29.2 2 and 4, are repealed effective for revenue for fiscal year 2000. 29.3 (g) Laws 1997, chapter 231, article 1, section 17, is 29.4 repealed effective the day following final enactment. 29.5 Sec. 47. [EFFECTIVE DATES.] 29.6 Section 3 is effective July 1, 1999. Section 6 is 29.7 effective July 1, 1997, for revenue for fiscal year 1999 29.8 relating to free and reduced lunch prices. Sections 4, 7, 8, 29.9 11, 12, and 34 are effective for revenue for fiscal year 1998. 29.10 Section 35 is effective for taxes payable in 1998. Section 13 29.11 is effective July 1, 1999. Section 20 is effective 29.12 retroactively for revenue for fiscal year 1997. Sections 17 and 29.13 29 are effective for revenue for fiscal year 2000. 29.14 ARTICLE 2 29.15 SPECIAL EDUCATION 29.16 Section 1. Minnesota Statutes 1996, section 120.03, 29.17 subdivision 1, is amended to read: 29.18 Subdivision 1. Every child who has a hearing impairment, 29.19 visual disability, speech or language impairment, physical 29.20 handicap, other health impairment, mental handicap, 29.21 emotional/behavioral disorder, specific learning 29.22 disability, autism, traumatic brain injury, multiple 29.23 disabilities, or deaf/blind disability and needs special 29.24 instruction and services, as determined by the standards of the 29.25 state board, is a child with a disability. In addition, every 29.26 child under agefivethree, and at local district discretion 29.27 from age three to age seven, who needs special instruction and 29.28 services, as determined by the standards of the state board, 29.29 because the child has a substantial delay or has an identifiable 29.30 physical or mental condition known to hinder normal development 29.31 is a child with a disability. 29.32 Sec. 2. [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 29.33 MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 29.34 Subdivision 1. [DEFINITION.] For purposes of this section, 29.35 cooperative unit has the meaning given in section 123.35, 29.36 subdivision 19b, paragraph (d). 30.1 Subd. 2. [STATEWIDE DATA MANAGEMENT SYSTEM.] The 30.2 commissioner of children, families, and learning, in cooperation 30.3 with the commissioner of human services, shall develop a 30.4 statewide data management system using the educational data 30.5 reporting system or other existing data management system for 30.6 school districts and cooperative units to use to maximize 30.7 medical assistance reimbursement for health and health-related 30.8 services provided under individual education plans and 30.9 individual family service plans. The system must be 30.10 appropriately integrated with state and local existing and 30.11 developing human services and education data systems. The 30.12 statewide data management system must enable school district and 30.13 cooperative unit staff to: 30.14 (1) establish medical assistance billing systems or improve 30.15 existing systems; 30.16 (2) understand the appropriate medical assistance billing 30.17 codes for services provided under individual education plans and 30.18 individual family service plans; 30.19 (3) comply with the Individuals with Disabilities Education 30.20 Act, Public Law Number 105-17; 30.21 (4) contract with billing agents; and 30.22 (5) carry out other activities necessary to maximize 30.23 medical assistance reimbursement. 30.24 Subd. 3. [IMPLEMENTATION.] Consistent with Minnesota 30.25 Statutes 256B.0625, subdivision 26, school districts may enroll 30.26 as medical assistance providers or subcontractors and bill the 30.27 department of human services under the medical assistance fee 30.28 for service claims processing system for special education 30.29 services which are covered services under chapter 256B, which 30.30 are provided in the school setting for a medical assistance 30.31 recipient, and for whom the district has secured informed 30.32 consent consistent with section 13.05, subdivision 4, paragraph 30.33 (d), and section 256B.77, subdivision 2, paragraph (p), to bill 30.34 for each type of covered service. A school district is not 30.35 eligible to enroll as a home care provider or a personal care 30.36 provider organization for purposes of billing home care services 31.1 under section 256B.0627 until the commissioner of human services 31.2 issues a bulletin instructing county public health nurses on how 31.3 to assess for the needs of eligible recipients during school 31.4 hours. To use private duty nursing services or personal care 31.5 services at school, the recipient or responsible party must 31.6 provide written authorization in the care plan identifying the 31.7 chosen provider and the daily amount of services to be used at 31.8 school. Medical assistance services for those enrolled in a 31.9 prepaid health plan shall remain the responsibility of the 31.10 contracted health plan subject to their network, credentialing, 31.11 prior authorization, and determination of medical necessity 31.12 criteria. The commissioner of human services shall adjust 31.13 payments to health plans to reflect increased costs incurred by 31.14 health plans due to increased payments made to school districts 31.15 or new payment or delivery arrangements developed by health 31.16 plans in cooperation with school districts. 31.17 Sec. 3. Minnesota Statutes 1996, section 120.06, 31.18 subdivision 2a, is amended to read: 31.19 Subd. 2a. [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 31.20 Notwithstanding subdivision 1, a school district must not deny 31.21 free admission to a homeless person of school age solely because 31.22 the school district cannot determine that the person is a 31.23 resident of the school district. 31.24 (b) The school district of residence for a homeless person 31.25 of school age shall be the school district in which the homeless 31.26 shelter or other program, center, or facility assisting the 31.27 homeless person is located. The educational services a school 31.28 district provides to a homeless person must allow the person to 31.29 meet the graduation standards under section 121.11, subdivision 31.30 7c. 31.31 Sec. 4. Minnesota Statutes 1996, section 120.064, 31.32 subdivision 5, is amended to read: 31.33 Subd. 5. [CONTRACT.] The sponsor's authorization for a 31.34 charter school shall be in the form of a written contract signed 31.35 by the sponsor and the board of directors of the charter 31.36 school. The contract for a charter school shall be in writing 32.1 and contain at least the following: 32.2 (1) a description of a program that carries out one or more 32.3 of the purposes in subdivision 1; 32.4 (2) specific outcomes pupils are to achieve under 32.5 subdivision 10; 32.6 (3) admission policies and procedures; 32.7 (4) management and administration of the school; 32.8 (5) requirements and procedures for program and financial 32.9 audits; 32.10 (6) how the school will comply with subdivisions 8, 13, 15, 32.11 and 21; 32.12 (7) assumption of liability by the charter school; 32.13 (8) types and amounts of insurance coverage to be obtained 32.14 by the charter school;and32.15 (9) the term of the contract, which may be up to three 32.16 years; and 32.17 (10) if the board of directors or the operators of the 32.18 charter school provide special instruction and services for 32.19 children with a disability under section 120.17, a description 32.20 of the financial parameters within which the charter school will 32.21 operate to provide the special instruction and services to 32.22 children with a disability. 32.23 Sec. 5. Minnesota Statutes 1996, section 120.101, 32.24 subdivision 3, is amended to read: 32.25 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 32.26 sections 120.101 to 120.103, "parent" means a parent, guardian, 32.27 or other person having legal custody of a child. 32.28 (b) In section 120.17, "parent" means a parent, guardian, 32.29 or other person having legal custody of a child under age 18. 32.30 For an unmarried pupil age 18 or over, "parent" means the pupil 32.31 unless a guardian or conservator has been appointed, in which 32.32 case it means the guardian or conservator. 32.33 (c) For purposes of section 120.17, the school district of 32.34 residence for an unmarried pupil age 18 or over who is a parent 32.35 under paragraph (b) and who is placed in a center for care and 32.36 treatment, shall be the school district in which the pupil's 33.1 biological or adoptive parent or designated guardian resides. 33.2 (d) For a married pupil age 18 or over, the school district 33.3 of residence is the school district in which the married pupil 33.4 resides. 33.5 Sec. 6. Minnesota Statutes 1996, section 120.17, 33.6 subdivision 1, is amended to read: 33.7 Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A 33.8 DISABILITY.] (a) As defined in paragraph (b), to the extent 33.9 required in federal law as of July 1, 1999, every district shall 33.10 provide special instruction and services, either within the 33.11 district or in another district, for children with a disability 33.12 who are residents of the district and who are disabled as set 33.13 forth in section 120.03. 33.14 (b) Notwithstanding any age limits in laws to the contrary, 33.15 special instruction and services must be provided from birth 33.16 until September 1 after the child with a disability becomes 22 33.17 years old but shall not extend beyond secondary school or its 33.18 equivalent, except as provided in section 126.22, subdivision 33.19 2. Local health, education, and social service agencies shall 33.20 refer children under age five who are known to need or suspected 33.21 of needing special instruction and services to the school 33.22 district. Districts with less than the minimum number of 33.23 eligible children with a disability as determined by the state 33.24 board shall cooperate with other districts to maintain a full 33.25 range of programs for education and services for children with a 33.26 disability. This subdivision does not alter the compulsory 33.27 attendance requirements of section 120.101. 33.28 Sec. 7. Minnesota Statutes 1996, section 120.17, 33.29 subdivision 2, is amended to read: 33.30 Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 33.31 in this subdivision, to the extent required by federal law as of 33.32 July 1, 1999, special instruction and services for children with 33.33 a disability must be based on the assessment and individual 33.34 education plan. The instruction and services may be provided by 33.35 one or more of the following methods: 33.36 (1) in connection with attending regular elementary and 34.1 secondary school classes; 34.2 (2) establishment of special classes; 34.3 (3) at the home or bedside of the child; 34.4 (4) in other districts; 34.5 (5) instruction and services by special education 34.6 cooperative centers established under this section, or in 34.7 another member district of the cooperative center to which the 34.8 resident district of the child with a disability belongs; 34.9 (6) in a state residential school or a school department of 34.10 a state institution approved by the commissioner; 34.11 (7) in other states; 34.12 (8) by contracting with public, private or voluntary 34.13 agencies; 34.14 (9) for children under age five and their families, 34.15 programs and services established through collaborative efforts 34.16 with other agencies; 34.17 (10) for children under age five and their families, 34.18 programs in which children with a disability are served with 34.19 children without a disability; and 34.20 (11) any other method approved by the commissioner. 34.21 (b) Preference shall be given to providing special 34.22 instruction and services to children under age three and their 34.23 families in the residence of the child with the parent or 34.24 primary caregiver, or both, present. 34.25 (c) The primary responsibility for the education of a child 34.26 with a disability shall remain with the district of the child's 34.27 residence regardless of which method of providing special 34.28 instruction and services is used. If a district other than a 34.29 child's district of residence provides special instruction and 34.30 services to the child, then the district providing the special 34.31 instruction and services shall notify the child's district of 34.32 residence before the child's individual education plan is 34.33 developed and shall provide the district of residence an 34.34 opportunity to participate in the plan's development. The 34.35 district of residence must inform the parents of the child about 34.36 the methods of instruction that are available. 35.1 (d) Paragraphs (e) to (i) may be cited as the "blind 35.2 persons' literacy rights and education act." 35.3 (e) The following definitions apply to paragraphs (f) to 35.4 (i). 35.5 "Blind student" means an individual who is eligible for 35.6 special educational services and who: 35.7 (1) has a visual acuity of 20/200 or less in the better eye 35.8 with correcting lenses or has a limited field of vision such 35.9 that the widest diameter subtends an angular distance of no 35.10 greater than 20 degrees; or 35.11 (2) has a medically indicated expectation of visual 35.12 deterioration. 35.13 "Braille" means the system of reading and writing through 35.14 touch commonly known as standard English Braille. 35.15"Individualized education plan" means a written statement35.16developed for a student eligible for special education and35.17services pursuant to this section and section 602(a)(20) of part35.18A of the Individuals with Disabilities Education Act, United35.19States Code, title 20, section 1401(a).35.20 (f) In developing an individualized education plan for each 35.21 blind student the presumption must be that proficiency in 35.22 Braille reading and writing is essential for the student to 35.23 achieve satisfactory educational progress. The assessment 35.24 required for each student must include a Braille skills 35.25 inventory, including a statement of strengths and deficits. 35.26 Braille instruction and use are not required by this paragraph 35.27 if, in the course of developing the student's individualized 35.28 education program, team members concur that the student's visual 35.29 impairment does not affect reading and writing performance 35.30 commensurate with ability. This paragraph does not require the 35.31 exclusive use of Braille if other special education services are 35.32 appropriate to the student's educational needs. The provision 35.33 of other appropriate services does not preclude Braille use or 35.34 instruction. Instruction in Braille reading and writing shall 35.35 be available for each blind student for whom the 35.36 multidisciplinary team has determined that reading and writing 36.1 is appropriate. 36.2 (g) Instruction in Braille reading and writing must be 36.3 sufficient to enable each blind student to communicate 36.4 effectively and efficiently with the same level of proficiency 36.5 expected of the student's peers of comparable ability and grade 36.6 level. 36.7 (h) The student's individualized education plan must 36.8 specify: 36.9 (1) the results obtained from the assessment required under 36.10 paragraph (f); 36.11 (2) how Braille will be implemented through integration 36.12 with other classroom activities; 36.13 (3) the date on which Braille instruction will begin; 36.14 (4) the length of the period of instruction and the 36.15 frequency and duration of each instructional session; 36.16 (5) the level of competency in Braille reading and writing 36.17 to be achieved by the end of the period and the objective 36.18 assessment measures to be used; and 36.19 (6) if a decision has been made under paragraph (f) that 36.20 Braille instruction or use is not required for the student: 36.21 (i) a statement that the decision was reached after a 36.22 review of pertinent literature describing the educational 36.23 benefits of Braille instruction and use; and 36.24 (ii) a specification of the evidence used to determine that 36.25 the student's ability to read and write effectively without 36.26 Braille is not impaired. 36.27 (i) Instruction in Braille reading and writing is a service 36.28 for the purpose of special education and services under this 36.29 section. 36.30 (j) Paragraphs (e) to (i) shall not be construed to 36.31 supersede any rights of a parent or guardian of a child with a 36.32 disability under federal or state law. 36.33 Sec. 8. Minnesota Statutes 1996, section 120.17, 36.34 subdivision 3, is amended to read: 36.35 Subd. 3. [RULES OF THE STATE BOARD.] (a) As defined in 36.36 this paragraph, but not to exceed the extent required by federal 37.1 law as of July 1, 1999, the state board shall promulgate rules 37.2 relative to qualifications of essential personnel, courses of 37.3 study, methods of instruction, pupil eligibility, size of 37.4 classes, rooms, equipment, supervision, parent consultation, and 37.5anyotherrules it deemsnecessary rules for instruction of 37.6 children with a disability. These rules shall provide standards 37.7 and procedures appropriate for the implementation of and within 37.8 the limitations of subdivisions 3a and 3b. These rules shall 37.9 also provide standards for the discipline, control, management 37.10 and protection of children with a disability. The state board 37.11 shall not adopt rules for pupils servedin level 1, 2, or 3, as37.12defined in Minnesota Rules, part 3525.2340,primarily in the 37.13 regular classroom establishing either case loads or the maximum 37.14 number of pupils that may be assigned to special education 37.15 teachers. The state board, in consultation with the departments 37.16 of health and human services, shall adopt permanent rules for 37.17 instruction and services for children under age five and their 37.18 families. These rules are binding on state and local education, 37.19 health, and human services agencies. The state board shall 37.20 adopt rules to determine eligibility for special education 37.21 services. The rules shall include procedures and standards by 37.22 which to grant variances for experimental eligibility criteria. 37.23 The state board shall, according to section 14.05, subdivision 37.24 4, notify a district applying for a variance from the rules 37.25 within 45 calendar days of receiving the request whether the 37.26 request for the variance has been granted or denied. If a 37.27 request is denied, the board shall specify the program standards 37.28 used to evaluate the request and the reasons for denying the 37.29 request. 37.30 (b) As provided in this paragraph, but not to exceed the 37.31 extent required by federal law as of July 1, 1999, the state's 37.32 regulatory scheme should support schools by assuring that all 37.33 state special education rules adopted by the state board of 37.34 education result in one or more of the following outcomes: 37.35 (1) increased time available to teachers and, where 37.36 appropriate, to support staff including school nurses for 38.1 educating students through direct and indirect instruction; 38.2 (2) consistent and uniform access to effective education 38.3 programs for students with disabilities throughout the state; 38.4 (3) reduced inequalities,and conflict, appropriate due 38.5 process hearing procedures, and reduced court actions related to 38.6 the delivery of special education instruction and services for 38.7 students with disabilities; 38.8 (4) clear expectations for service providers and for 38.9 students with disabilities; 38.10 (5) increased accountability for all individuals and 38.11 agencies that provide instruction and other services to students 38.12 with disabilities; 38.13 (6) greater focus for the state and local resources 38.14 dedicated to educating students with disabilities; and 38.15 (7) clearer standards for evaluating the effectiveness of 38.16 education and support services for students with disabilities. 38.17 Sec. 9. Minnesota Statutes 1996, section 120.17, 38.18 subdivision 3a, is amended to read: 38.19 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 38.20 this subdivision, to the extent required by federal law as of 38.21 July 1, 1999, every district shall ensure that: 38.22 (1) all students with disabilities are provided the special 38.23 instruction and services which are appropriate to their needs. 38.24 Where the individual education plan team has determined 38.25 appropriate goals and objectives based on the student's needs, 38.26 including the extent to which the student can be included in the 38.27 least restrictive environment, and where there are essentially 38.28 equivalent and effective instruction, related services, or 38.29 assistive technology devices available to meet the student's 38.30 needs, cost to the school district may be among the factors 38.31 considered by the team in choosing how to provide the 38.32 appropriate services, instruction, or devices that are to be 38.33 made part of the student's individual education plan. The 38.34 student's needs and the special education instruction and 38.35 services to be provided shall be agreed upon through the 38.36 development of an individual education plan. The plan shall 39.1 address the student's need to develop skills to live and work as 39.2 independently as possible within the community. By grade 9 or 39.3 age 14, the plan shall address the student's needs for 39.4 transition from secondary services to post-secondary education 39.5 and training, employment, community participation, recreation, 39.6 and leisure and home living. In developing the plan, districts 39.7 must inform parents of the full range of transitional goals and 39.8 related services that should be considered. The plan must 39.9 include a statement of the needed transition services, including 39.10 a statement of the interagency responsibilities or linkages or 39.11 both before secondary services are concluded; 39.12 (2) children with a disability under age five and their 39.13 families are provided special instruction and services 39.14 appropriate to the child's level of functioning and needs; 39.15 (3) children with a disability and their parents or 39.16 guardians are guaranteed procedural safeguards and the right to 39.17 participate in decisions involving identification, assessment 39.18 including assistive technology assessment, and educational 39.19 placement of children with a disability; 39.20 (4) eligibility and needs of children with a disability are 39.21 determined by an initial assessment or reassessment. The 39.22 reassessment may be completed using existing data pursuant to 39.23 United States Code, title 20, section 33, et. seq.; 39.24 (5) to the maximum extent appropriate, children with a 39.25 disability, including those in public or private institutions or 39.26 other care facilities, are educated with children who are not 39.27 disabled, and that special classes, separate schooling, or other 39.28 removal of children with a disability from the regular 39.29 educational environment occurs only when and to the extent that 39.30 the nature or severity of the disability is such that education 39.31 in regular classes with the use of supplementary services cannot 39.32 be achieved satisfactorily; 39.33(5)(6) in accordance with recognized professional 39.34 standards, testing and evaluation materials, and procedures 39.35 utilized for the purposes of classification and placement of 39.36 children with a disability are selected and administered so as 40.1 not to be racially or culturally discriminatory; and 40.2(6)(7) the rights of the child are protected when the 40.3 parents or guardians are not known or not available, or the 40.4 child is a ward of the state. 40.5 (b) For paraprofessionals employed to work in programs for 40.6 students with disabilities, the school board in each district 40.7 shall ensure that: 40.8 (1) before or immediately upon employment, each 40.9 paraprofessional develops sufficient knowledge and skills in 40.10 emergency procedures, building orientation, roles and 40.11 responsibilities, confidentiality, vulnerability, and 40.12 reportability, among other things, to begin meeting the needs of 40.13 the students with whom the paraprofessional works; 40.14 (2) annual training opportunities are available to enable 40.15 the paraprofessional to continue to further develop the 40.16 knowledge and skills that are specific to the students with whom 40.17 the paraprofessional works, including understanding 40.18 disabilities, following lesson plans, and implementing follow-up 40.19 instructional procedures and activities; and 40.20 (3) a districtwide process obligates each paraprofessional 40.21 to work under the ongoing direction of a licensed teacher and, 40.22 where appropriate and possible, the supervision of a school 40.23 nurse. 40.24 Sec. 10. Minnesota Statutes 1996, section 120.17, 40.25 subdivision 3b, is amended to read: 40.26 Subd. 3b. [PROCEDURES FOR DECISIONS.] As defined in this 40.27 paragraph, but not to exceed the extent required by federal law 40.28 as of July 1, 1999, every district shall utilizeat leastthe 40.29 following procedures for decisions involving identification, 40.30 assessment, and educational placement of children with a 40.31 disability: 40.32 (a) Parents and guardians shall receive prior written 40.33 notice of: 40.34 (1) any proposed formal educational assessment or proposed 40.35 denial of a formal educational assessment of their child; 40.36 (2) a proposed placement of their child in, transfer from 41.1 or to, or denial of placement in a special education program; or 41.2 (3) the proposed provision, addition, denial or removal of 41.3 special education services for their child;. 41.4 (b) The district shall not proceed with the initial formal 41.5 assessment of a child, the initial placement of a child in a 41.6 special education program, or the initial provision of special 41.7 education services for a child without the prior written consent 41.8 of the child's parent or guardian. The refusal of a parent or 41.9 guardian to consent may be overridden by the decision in a 41.10 hearing held pursuant toclauseparagraph (e) at the district's 41.11 initiative;. 41.12 (c) Parents and guardians shall have an opportunity to meet 41.13 with appropriate district staff in at least one conciliation 41.14 conference, mediation, or other method of alternative dispute 41.15 resolution that the parties agree to, if they object to any 41.16 proposal of which they are notified pursuant toclause41.17 paragraph (a). A school district must participate in at least 41.18 one attempt to mediate the dispute using the mediation services 41.19 of MNSEMS, which is free to both parties, if a parent or 41.20 guardian requests the mediation. The conciliation process or 41.21 other form of alternative dispute resolution shall not be used 41.22 to deny or delay a parent or guardian's right to a due process 41.23 hearing. If the parent or guardian refuses efforts by the 41.24 district toconciliate the dispute with the school district, the41.25requirement of an opportunity for conciliation or other41.26alternative dispute resolution shall be deemed to be satisfied.41.27Notwithstanding other law, in any proceeding following a41.28conciliation conference, the school district must not offer a41.29conciliation conference memorandum into evidence, except for any41.30portions that describe the district's final proposed offer of41.31service. Otherwise, with respect to forms of dispute41.32resolution, mediation, or conciliation, Minnesota Rule of41.33Evidence 408 applies.resolve the dispute through alternative 41.34 dispute resolution, the parent or guardian may later request an 41.35 alternative dispute resolution and a school district must 41.36 participate in at least one mediation session using the 42.1 mediation services of MNSEMS. Any alternative dispute 42.2 resolution proceedings which take place between the parties will 42.3 be governed by the confidentiality requirements in rule 114.08 42.4 of the general rules of practice for the district courts. The 42.5 department of children, families, and learning may reimburse the 42.6 districts or directly pay the costs of lay advocates, not to 42.7 exceed $150 per dispute, used in conjunction with alternative 42.8 dispute resolution. The commissioner shall establish policies 42.9 for districts and provide training and resources designed to 42.10 encourage early identification of disputes and access to 42.11 mediation. 42.12 (d) The commissioner shall establish a mediation process to 42.13 assist parents, school districts, or other parties to resolve 42.14 disputes arising out of the identification, assessment, or 42.15 educational placement of children with a disability. The 42.16 mediation process must be offered as an informal alternative to 42.17 the due process hearing provided underclauseparagraph (e), but 42.18 must not be used to deny or postpone the opportunity of a parent 42.19 or guardian to obtain a due process hearing. 42.20 (e) Parents, guardians, and the district shall have an 42.21 opportunity to obtain an impartial due process hearing initiated 42.22 and conducted by and in the school district responsible for 42.23 assuring that an appropriate program is provided in accordance 42.24 with state board rules, if the parent or guardian continues to 42.25 object to: 42.26 (1) a proposed formal educational assessment or proposed 42.27 denial of a formal educational assessment of their child; 42.28 (2) the proposed placement of their child in, or transfer 42.29 of their child to a special education program; 42.30 (3) the proposed denial of placement of their child in a 42.31 special education program or the transfer of their child from a 42.32 special education program; 42.33 (4) the proposed provision or addition of special education 42.34 services for their child; or 42.35 (5) the proposed denial or removal of special education 42.36 services for their child. 43.1 Within five business days after the request for a hearing, 43.2 or as directed by the hearing officer, the objecting party shall 43.3 provide the other party with a brief written statement of 43.4 particulars of the objection, the reasons for the objection, and 43.5 the specific remedies sought. The other party shall provide the 43.6 objecting party with a written response to the statement of 43.7 objections within five business days of receipt of the statement. 43.8 The hearing shall take place before an impartial hearing 43.9 officer mutually agreed to by the school board and the parent or 43.10 guardian. Within four business days of the receipt of the 43.11 request for the hearing, if the parties have not agreed on the 43.12 hearing officer, the school board shall request the commissioner 43.13 to appoint a hearing officer from a list maintained for the 43.14 purpose. A retired judge, retired court referee, or retired 43.15 federal magistrate judge who is otherwise qualified under this 43.16 section and wishes to be a hearing officer, must be put on the 43.17 list. The school board shall include with the request the name 43.18 of the person requesting the hearing, the name of the student, 43.19 the attorneys involved, if any, and the date the hearing request 43.20 was received. The hearing officer shall not be a school board 43.21 member or employee of the school district where the child 43.22 resides or of the child's school district of residence, an 43.23 employee of any other public agency involved in the education or 43.24 care of the child, or any person with a personal or professional 43.25 interest which would conflict with the person's objectivity at 43.26 the hearing. A person who otherwise qualifies as a hearing 43.27 officer is not an employee of the district solely because the 43.28 person is paid by the district to serve as a hearing 43.29 officer. Any party to a hearing, except an expedited hearing 43.30 under federal law, may make and serve upon the opposing party 43.31 and the commissioner a notice to remove a hearing officer 43.32 appointed by the commissioner. The notice shall be served and 43.33 filed within three business days after the party receives notice 43.34 of the appointment of the hearing officer by the commissioner, 43.35 but not later than the commencement of the hearing. 43.36 No such notice may be filed by a party against a hearing 44.1 officer who has presided at a motion or any other proceeding of 44.2 which the party had notice. A hearing officer who has presided 44.3 at a motion or other proceeding may not be removed except upon 44.4 an affirmative showing of prejudice on the part of the hearing 44.5 officer. 44.6 After the party has once disqualified a hearing officer as 44.7 a matter of right, that party may disqualify the substitute 44.8 hearing officer only by making an affirmative showing of 44.9 prejudice or bias to the commissioner, or to the chief 44.10 administrative law judge if the hearing officer is an 44.11 administrative law judge. 44.12 Upon the filing of a notice to remove or if a party makes 44.13 an affirmative showing of prejudice against a substitute hearing 44.14 officer, the commissioner shall assign any other hearing officer 44.15 to hear the matter. 44.16 If the hearing officer requests an independent educational 44.17 assessment of a child, the cost of the assessment shall be at 44.18 district expense. The proceedings shall be recorded and 44.19 preserved, at the expense of the school district, pending 44.20 ultimate disposition of the action. 44.21 (f) The decision of the hearing officer pursuant toclause44.22 paragraph (e) shall be rendered not more than 45 calendar days 44.23 from the date of the receipt of the request for the hearing, 44.24 except that hearing officers are encouraged to accelerate the 44.25 timeline to 30 days for children birth through two whose needs 44.26 change rapidly and require quick resolution of complaints. A 44.27 hearing officer may not grant specific extensions of time beyond 44.28 the 45-day period unless requested by either party for good 44.29 cause shown on the record. The decision of the hearing officer 44.30 shall be binding on all parties unless appealed to the 44.31 commissioner by the parent; guardian; school board of the 44.32 district where the child resides pursuant toclause44.33(g)paragraph (h); and also in the case of children birth 44.34 through two, by the county board. 44.35 The local decision shall: 44.36 (1) be in writing; 45.1 (2) state the controlling facts upon which the decision is 45.2 made in sufficient detail to apprise the parties and the hearing 45.3 review officer of the basis and reason for the decision; and 45.4 (3) be based on the standards set forth in subdivision 3a 45.5 and the rules of the state board. 45.6 (g) The hearing officer may require the resident school 45.7 district to provide compensatory educational services to the 45.8 child if the hearing officer finds that the school district has 45.9 not offered or made available to the child a free appropriate 45.10 public education in the child's educational program and that the 45.11 child has suffered a loss of educational benefit. Such services 45.12 shall take the form of direct and indirect special education and 45.13 related services designed to address any loss of educational 45.14 benefit that may have occurred. The hearing officer's finding 45.15 shall be based on a present determination of whether the child 45.16 has suffered a loss of educational benefit. 45.17(g)(h) Any local decision issued pursuant toclauses45.18 paragraphs (e) and (f) may be appealed to the commissioner 45.19 within 30 calendar days of receipt of that written decision, by 45.20 the parent, guardian, or the school board of the district 45.21 responsible for assuring that an appropriate program is provided 45.22 in accordance with state board rules. The appealing party shall 45.23 note the specific parts of the hearing decision being appealed. 45.24 If the decision is appealed, a written transcript of the 45.25 hearing shall be made by the school district and provided by the 45.26 district to the parties involved and the hearing review officer 45.27 within five calendar days of the filing of the appeal. The 45.28 hearing review officer shall conduct an appellate review and 45.29 issue a final independent decision based on an impartial review 45.30 of the local decision and the entire record within 30 calendar 45.31 days after the filing of the appeal. However, the hearing 45.32 review officer shall seek additional evidence if necessary and 45.33 may afford the parties an opportunity for written or oral 45.34 argument; provided any hearing held to seek additional evidence 45.35 shall be an impartial due process hearing but shall be deemed 45.36 not to be a contested case hearing for purposes of chapter 14. 46.1 The hearing review officer may grant specific extensions of time 46.2 beyond the 30-day period at the request of any party for good 46.3 cause shown on the record. 46.4 The final decision shall: 46.5 (1) be in writing; 46.6 (2) include findings and conclusions; and 46.7 (3) be based upon the standards set forth in subdivision 3a 46.8 and in the rules of the state board. 46.9(h)(i) The decision of the hearing review officer shall be 46.10 final unless appealed by the parent or guardian or school board 46.11 to the Minnesota court of appeals or federal district court as 46.12 provided by federal law. State judicial review shall be in 46.13 accordance with chapter 14. 46.14(i)(j) The commissioner of children, families, and 46.15 learning shall select an individual who has the qualifications 46.16 enumerated in this paragraph to serve as the hearing review 46.17 officer: 46.18 (1) the individual must be knowledgeable and impartial; 46.19 (2) the individual must not have a personal interest in or 46.20 specific involvement with the student who is a party to the 46.21 hearing; 46.22 (3) the individual must not have been employed as an 46.23 administrator by the district that is a party to the hearing; 46.24 (4) the individual must not have been involved in the 46.25 selection of the administrators of the district that is a party 46.26 to the hearing; 46.27 (5) the individual must not have a personal, economic, or 46.28 professional interest in the outcome of the hearing other than 46.29 the proper administration of the federal and state laws, rules, 46.30 and policies; 46.31 (6) the individual must not have substantial involvement in 46.32 the development of a state or local policy or procedures that 46.33 are challenged in the appeal; 46.34 (7) the individual is not a current employee or board 46.35 member of a Minnesota public school district, education 46.36 district, intermediate unit or regional education agency, the 47.1 department of children, families, and learning, the state board 47.2 of education; and 47.3 (8) the individual is not a current employee or board 47.4 member of a disability advocacy organization or group. 47.5(j)(k) In all appeals, the parent or guardian of the pupil 47.6 with a disability or the district that is a party to the hearing 47.7 may challenge the impartiality or competence of the proposed 47.8 hearing review officer by applying to the hearing review officer. 47.9(k)(l) Pending the completion of proceedings pursuant to 47.10 this subdivision, unless the district and the parent or guardian 47.11 of the child agree otherwise, the child shall remain in the 47.12 child's current educational placement and shall not be denied 47.13 initial admission to school. 47.14(l)(m) The child's school district of residence, a 47.15 resident district, and providing district shall receive notice 47.16 of and may be a party to any hearings or appeals under this 47.17 subdivision. 47.18(m)(n) A school district is not liable for harmless 47.19 technical violations of this subdivision or rules implementing 47.20 this subdivision if the school district can demonstrate on a 47.21 case-by-case basis that the violations did not harm the 47.22 student's educational progress or the parent or guardian's right 47.23 to notice, participation, or due process. 47.24(n)(o) Within ten calendar days after appointment, the 47.25 hearing officer shall schedule and hold a prehearing 47.26 conference. At that conference, or later, the hearing officer 47.27 may take any appropriate action that a court might take under 47.28 Rule 16 of Minnesota Rules of Civil Procedure including, but not 47.29 limited to, scheduling, jurisdiction, and listing witnesses 47.30 including expert witnesses. 47.31(o)(p) A hearing officer or hearing review officer 47.32 appointed under this subdivision shall be deemed to be an 47.33 employee of the state under section 3.732 for the purposes of 47.34 section 3.736 only. 47.35(p)(q) In order to be eligible for selection, hearing 47.36 officers and hearing review officers shall participate in 48.1 training and follow procedures as designated by the commissioner. 48.2(q)(r) The hearing officer may admit all evidence which 48.3 possesses probative value, including hearsay, if it is the type 48.4 of evidence on which reasonable, prudent persons are accustomed 48.5 to rely in the conduct of their serious affairs. The hearing 48.6 officer shall give effect to the rules of privilege recognized 48.7 by law. Evidence which is incompetent, irrelevant, immaterial, 48.8 or unduly repetitious shall be excluded. 48.9 Sec. 11. Minnesota Statutes 1996, section 120.17, 48.10 subdivision 9, is amended to read: 48.11 Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district 48.12 who is eligible for special instruction and servicespursuant to48.13 under this section shall be deniedprovision of thisinstruction 48.14 and service on a shared time basis consistent with section 48.15 124A.034, subdivision 2, because ofattendance atattending a 48.16 nonpublic school defined in section 123.932, subdivision 3. If 48.17 a resident pupil with a disability attends a nonpublic school 48.18 located within the district of residence, the district shall 48.19 provide necessary transportation for that pupil within the 48.20 district between the nonpublic school and the educational 48.21 facility where special instruction and services are provided on 48.22 a shared time basis. If a resident pupil with a disability 48.23 attends a nonpublic school located in another district and if no 48.24 agreement existspursuant tounder section 124A.034, subdivision 48.25 1 or 1a, forthe provision ofproviding special instruction and 48.26 services on a shared time basis to that pupil by the district of 48.27 attendance and where the special instruction and services are 48.28 provided within the district of residence, the district of 48.29 residence shall provide necessary transportation for that pupil 48.30 between the boundary of the district of residence and the 48.31 educational facility. The district of residence may provide 48.32 necessary transportation for that pupil between its boundary and 48.33 the nonpublic school attended, but the nonpublic school shall 48.34 pay the cost of transportation provided outside the district 48.35 boundary. 48.36 Sec. 12. Minnesota Statutes 1996, section 120.17, 49.1 subdivision 15, is amended to read: 49.2 Subd. 15. [THIRD PARTY PAYMENT.] Nothing in this section 49.3 relieves an insurer or similar third party from an otherwise 49.4 valid obligation to pay, or changes the validity of an 49.5 obligation to pay, for services rendered to a child with a 49.6 disability, and the child's family. A school district may pay 49.7 or reimburse copayments, coinsurance, deductibles, and other 49.8 enrollee cost-sharing amounts, on behalf of the student or 49.9 family, in connection with health and related services provided 49.10 under an individual educational plan. District payment of 49.11 enrollee cost sharing amounts shall serve to meet the 49.12 requirement that the health and related services be provided 49.13 free to the child and the child's family. The district shall 49.14 obtain informed consent consistent with section 13.05, 49.15 subdivision 4, paragraph (d), and section 256B.77, subdivision 49.16 2, paragraph (p), to bill health plans for each type of covered 49.17 service. 49.18 Sec. 13. Minnesota Statutes 1996, section 120.1701, 49.19 subdivision 2, is amended to read: 49.20 Subd. 2. [DEFINITIONS.] For the purposes of this section 49.21 the following terms have the meaning given them. 49.22 (a) "Coordinate" means to provide ready access to a 49.23 community's services and resources to meet child and family 49.24 needs. 49.25 (b) "Core early intervention services" means services that 49.26 are available at no cost to children and families. These 49.27 services include: 49.28 (1) identification and referral; 49.29 (2) screening; 49.30 (3) evaluation; 49.31 (4) assessment; 49.32 (5) service coordination; 49.33 (6) special education and related services provided under 49.34 section 120.17, subdivision 3a, and United States Code, title 49.35 20, section 1401; and 49.36 (7) protection of parent and child rights by means of 50.1 procedural safeguards. 50.2 (c) "County board" means a county board established under 50.3 chapter 375. 50.4 (d) "Early intervention record" means any personally 50.5 identifiable information about a child or the child's family 50.6 that is generated by the early intervention system, and that 50.7 pertains to evaluation and assessment, development of an 50.8 individualized family service plan, and the delivery of early 50.9 intervention services. 50.10 (e) "Early intervention services" means services provided 50.11 in conformity with an individualized family service plan that 50.12 are designed to meet the special developmental needs of a child 50.13 eligible under Code of Federal Regulations, title 34, part 303, 50.14 and the needs of the child's family related to enhancing the 50.15 child's development and that are selected in collaboration with 50.16 the parent. These services include core early intervention 50.17 services and additional early intervention services listed in 50.18 subdivision 4 and services defined in Code of Federal 50.19 Regulations, title 34, section 303, et seq. 50.20 (f) "Early intervention system" means the total effort in 50.21 the state to meet the needs of eligible children and their 50.22 families, including, but not limited to: 50.23 (1) any public agency in the state that receives funds 50.24 under the Individuals with Disabilities Education Act, United 50.25 States Code, title 20, sections 1471 to 1485 (Part H, Public Law 50.26 Number 102-119); 50.27 (2) other state and local agencies administering programs 50.28 involved in the provision of early intervention services, 50.29 including, but not limited to: 50.30 (i) the Maternal and Child Health program under title V of 50.31 the Social Security Act, United States Code, title 42, sections 50.32 701 to 709; 50.33 (ii) the Individuals with Disabilities Education Act, 50.34 United States Code, title 20, sections 1411 to 1420 (Part B); 50.35 (iii) medical assistance under the Social Security Act, 50.36 United States Code, title 42, section 1396 et seq.; 51.1 (iv) the Developmental Disabilities Assistance and Bill of 51.2 Rights Act, United States Code, title 42, sections 6021 to 6030 51.3 (Part B); and 51.4 (v) the Head Start Act, United States Code, title 42, 51.5 sections 9831 to 9852; and 51.6 (3) services provided by private groups or third-party 51.7 payers in conformity with an individualized family service plan. 51.8 (g) "Eligibility for Part H" means eligibility for early 51.9 childhood special education under section 120.03 and Minnesota 51.10 Rules, part 3525.2335, subpart 1, items A and B. 51.11 (h) "Facilitate payment" means helping families access 51.12 necessary public or private assistance that provides payment for 51.13 services required to meet needs identified in a service plan, 51.14 individual education plan (IEP), individual service plan (ISP), 51.15 or individualized family service plan (IFSP), according to time 51.16 frames required by the plan. This may also include activities 51.17 to collect fees for services provided on a sliding fee basis, 51.18 where permitted by state law. 51.19 (i) "Individualized family service plan" or "IFSP" means a 51.20 written plan for providing services to a child and the child's 51.21 family. 51.22 (j) "Interagency child find systems" means activities 51.23 developed on an interagency basis with the involvement of 51.24 interagency early intervention committees and other relevant 51.25 community groups to actively seek out, identify, and refer 51.26 infants and young children with, or at risk of, disabilities, 51.27 and their families. 51.28 (k) "Local primary agency" means the agency designated 51.29 jointly by the school and county board under subdivision 4. 51.30 (l) "Natural environments" means the child's home and 51.31 community settings in which children without disabilities 51.32 participate. 51.33(l)(m) "Parent" means the biological parent with parental 51.34 rights, adoptive parent, legal guardian, or surrogate parent. 51.35(m)(n) "Part H state plan" means the annual state plan 51.36 application approved by the federal government under the 52.1 Individuals with Disabilities Education Act, United States Code, 52.2 title 20, section 1471 et seq. (Part H, Public Law Number 52.3 102-119). 52.4(n)(o) "Pay for" means using federal, state, local, and 52.5 private dollars available for early intervention services. 52.6(o)(p) "Respite" means short-term, temporary care provided 52.7 to a child with a disability due to the temporary absence or 52.8 need for relief of the family member or members or primary 52.9 caregiver, normally providing the care. 52.10(p)(q) "State lead agency" means the state agency 52.11 receiving federal funds under the Individuals with Disabilities 52.12 Education Act, United States Code, title 20, section 1471 et 52.13 seq. (Part H, Public Law Number 102-119). 52.14(q)(r) "Surrogate parent" means a person appointed by the 52.15 local education agency to assure that the rights of the child to 52.16 early intervention services are protected. A person cannot be a 52.17 surrogate parent to a child for whom the person provides early 52.18 intervention services. 52.19 Sec. 14. Minnesota Statutes 1997 Supplement, section 52.20 120.1701, subdivision 3, is amended to read: 52.21 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 52.22 interagency coordinating council of at least 17, but not more 52.23 than 25 members is established, in compliance with Public Law 52.24 Number 102-119, section 682. The members shall be appointed by 52.25 the governor. Council members shall elect the council chair. 52.26 The representative of the commissioner of children, families, 52.27 and learning may not serve as the chair. The council shall be 52.28 composed of at least five parents, including persons of color, 52.29 of children with disabilities under age 12, including at least 52.30 three parents of a child with a disability under age seven, five 52.31 representatives of public or private providers of services for 52.32 children with disabilities under age five, including a special 52.33 education director, county social service director, local Head 52.34 Start director, and a community health services or public health 52.35 nursing administrator, one member of the senate, one member of 52.36 the house of representatives, one representative of teacher 53.1 preparation programs in early childhood-special education or 53.2 other preparation programs in early childhood intervention, at 53.3 least one representative of advocacy organizations for children 53.4 with disabilities under age five, one physician who cares for 53.5 young children with special health care needs, one 53.6 representative each from the commissioners of commerce, 53.7 children, families, and learning, health, human services,and53.8economic securitya representative from the state agency 53.9 responsible for child care, and a representative from Indian 53.10 health services or a tribal council. Section 15.059, 53.11 subdivisions 2 to 5, apply to the council. The council shall 53.12 meet at least quarterly. 53.13 The council shall address methods of implementing the state 53.14 policy of developing and implementing comprehensive, 53.15 coordinated, multidisciplinary interagency programs of early 53.16 intervention services for children with disabilities and their 53.17 families. 53.18 The duties of the council include recommending policies to 53.19 ensure a comprehensive and coordinated system of all state and 53.20 local agency services for children under age five with 53.21 disabilities and their families. The policies must address how 53.22 to incorporate each agency's services into a unified state and 53.23 local system of multidisciplinary assessment practices, 53.24 individual intervention plans, comprehensive systems to find 53.25 children in need of services, methods to improve public 53.26 awareness, and assistance in determining the role of interagency 53.27 early intervention committees. 53.28 Each year by June 1, the council shall recommend to the 53.29 governor and the commissioners of children, families, and 53.30 learning, health, human services, commerce, and economic 53.31 security policies for a comprehensive and coordinated system. 53.32 Notwithstanding any other law to the contrary, the state 53.33 interagency coordinating council shall expire on June 30, 2001. 53.34 Sec. 15. Minnesota Statutes 1996, section 120.1701, 53.35 subdivision 5, is amended to read: 53.36 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 54.1 A school district, group of districts, or special education 54.2 cooperative, in cooperation with the health and human service 54.3 agencies located in the county or counties in which the district 54.4 or cooperative is located, shall establish an interagency early 54.5 intervention committee for children with disabilities under age 54.6 five and their families. Committees shall include 54.7 representatives of local and regional health, education, and 54.8 county human service agencies; county boards; school boards; 54.9 early childhood family education programs; parents of young 54.10 children with disabilities under age 12; current service 54.11 providers; and may also include representatives from other 54.12 private or public agencies. The committee shall elect a chair 54.13 from among its members and shall meet at least quarterly. 54.14 (b) The committee shall develop and implement interagency 54.15 policies and procedures concerning the following ongoing duties: 54.16 (1) develop public awareness systems designed to inform 54.17 potential recipient families of available programs and services; 54.18 (2) implement interagency child find systems designed to 54.19 actively seek out, identify, and refer infants and young 54.20 children with, or at risk of, disabilities and their families; 54.21 (3) establish and evaluate the identification, referral, 54.22 child and family assessment systems, procedural safeguard 54.23 process, and community learning systems to recommend, where 54.24 necessary, alterations and improvements; 54.25 (4) assure the development of individualized family service 54.26 plans for all eligible infants and toddlers with disabilities 54.27 from birth through age two, and their families, and individual 54.28 education plans and individual service plans when necessary to 54.29 appropriately serve children with disabilities, age three and 54.30 older, and their families and recommend assignment of financial 54.31 responsibilities to the appropriate agencies. Agencies are 54.32 encouraged to develop individual family service plans for 54.33 children with disabilities, age three and older; 54.34 (5) implement a process for assuring that services involve 54.35 cooperating agencies at all steps leading to individualized 54.36 programs; 55.1 (6) facilitate the development of a transitional plan if a 55.2 service provider is not recommended to continue to provide 55.3 services; 55.4 (7) identify the current services and funding being 55.5 provided within the community for children with disabilities 55.6 under age five and their families; 55.7 (8) develop a plan for the allocation and expenditure of 55.8 additional state and federal early intervention funds under 55.9 United States Code, title 20, section 1471 et seq. (Part H, 55.10 Public Law Number 102-119) and United States Code, title 20, 55.11 section 631, et seq. (Chapter I, Public Law Number 89-313); and 55.12 (9) develop a policy that is consistent with section 13.05, 55.13 subdivision 9, and federal law to enable a member of an 55.14 interagency early intervention committee to allow another member 55.15 access to data classified as not public. 55.16 (c) The local committee shall also: 55.17 (1) participate in needs assessments and program planning 55.18 activities conducted by local social service, health and 55.19 education agencies for young children with disabilities and 55.20 their families; 55.21 (2) review and comment on the early intervention section of 55.22 the total special education system for the district, the county 55.23 social service plan, the section or sections of the community 55.24 health services plan that address needs of and service 55.25 activities targeted to children with special health care needs, 55.26 and the section of the maternal and child health special project 55.27 grants that address needs of and service activities targeted to 55.28 children with chronic illness and disabilities; and 55.29 (3) prepare a yearly summary on the progress of the 55.30 community in serving young children with disabilities, and their 55.31 families, including the expenditure of funds, the identification55.32of unmet service needs identified on the individual family55.33services plan and other individualized plans, and local, state,55.34and federal policies impeding the implementation of this section. 55.35 (d) The summary must be organized following a format 55.36 prescribed by the commissioner of the state lead agency and must 56.1 be submitted to each of the local agencies and to the state 56.2 interagency coordinating council by October 1 of each year. 56.3 The departments of children, families, and learning, 56.4 health, and human services must provide assistance to the local 56.5 agencies in developing cooperative plans for providing services. 56.6 Sec. 16. Minnesota Statutes 1996, section 120.1701, 56.7 subdivision 11, is amended to read: 56.8 Subd. 11. [PAYOR OF LAST RESORT.](a) For fiscal years56.91995 and 1996,The state lead agency shallestablishmaintain a 56.10 reserve account from federal sources to pay for services in 56.11 dispute or to pay for early intervention services when local 56.12 agencies have exhausted all other public and private funds 56.13 available for Part H eligible children. 56.14(b) The lead agency shall report to the legislature by56.15January 1, 1996, regarding county board expenditures for early56.16intervention services and the continuing need and funding of the56.17reserve account.56.18 Sec. 17. Minnesota Statutes 1996, section 120.1701, 56.19 subdivision 17, is amended to read: 56.20 Subd. 17. [MEDIATION PROCEDURE.] The commissioner, or the 56.21 commissioner's designee, of the state lead agency shall use 56.22 federal funds to provide mediation for the activities in 56.23 paragraphs (a) and (b). 56.24 (a) A parent may resolve a dispute regarding issues in 56.25 subdivision 16, paragraph (b), clause (5), through mediation. 56.26 If the parent chooses mediation, all public agencies involved in 56.27 the dispute shall participate in the mediation process. The 56.28 parent and the public agencies must complete the mediation 56.29 process within2030 calendar days of the date the 56.30commissioneroffice of dispute resolution receives a parent's 56.31 written request for mediation. The mediation process may not be 56.32 used to delay a parent's right to a due process hearing. The 56.33 resolution of the mediation is not binding on any party. 56.34 (b) The local primary agency may request mediation on 56.35 behalf of involved agencies when there are disputes between 56.36 agencies regarding responsibilities to coordinate, provide, pay 57.1 for, or facilitate payment for early intervention services. 57.2 Sec. 18. Minnesota Statutes 1996, section 120.173, 57.3 subdivision 1, is amended to read: 57.4 Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner 57.5 of children, families, and learning may approve applications 57.6 from school districts to provide prevention services as an 57.7 alternative to special education and other compensatory programs 57.8during three school years. A district with an approved program 57.9 may provide instruction and services in a regular education 57.10 classroom, or an area learning center, to eligible pupils. 57.11 Pupils eligible to participate in the program are low-performing 57.12 pupils who, based on documented experience, the professional 57.13 judgment of a classroom teacher, or a team of licensed 57.14 professionals, would eventually qualify for special education 57.15 instruction or related services under section 120.17 if the 57.16 intervention services authorized by this section were 57.17 unavailable. Pupils may be provided services during extended 57.18 school days and throughout the entire year and through the 57.19 assurance of mastery program under section 124.3111. 57.20 Sec. 19. Minnesota Statutes 1996, section 120.173, 57.21 subdivision 6, is amended to read: 57.22 Subd. 6. [PUPIL RIGHTS.] A pupil participating in the 57.23 program must be individually evaluated according to the pupil's 57.24 actual abilities and needs. A pupil who is eligible for 57.25 services under section 120.17 is entitled to procedural 57.26 protections provided underPublic Law Number 94-142United 57.27 States Code, title 20, section 33 in any matter that affects the 57.28 identification, evaluation, placement, or change in placement of 57.29 a pupil. The district must ensure the protection of a pupil's 57.30 civil rights, provide equal educational opportunities, and 57.31 prohibit discrimination. Failure to comply with this 57.32 subdivision will at least cause a district to become ineligible 57.33 to participate in the program. Notwithstanding rules of the 57.34 state board of education, a pupil's rights under this section 57.35 cannot be waived by the state board. 57.36 Sec. 20. Minnesota Statutes 1996, section 123.935, 58.1 subdivision 1, is amended to read: 58.2 Subdivision 1. [PROVIDED SERVICES.] The state board of 58.3 education shall promulgate rules under the provisions of chapter 58.4 14 requiring each school district or other intermediary service 58.5 area: (a) to provide each year upon formal request by a 58.6 specific date by or on behalf of a nonpublic school pupil 58.7 enrolled in a nonpublic school located in that district or area, 58.8 the same specific health services as are provided for public 58.9 school pupils by the district where the nonpublic school is 58.10 located; and (b) to provide each year upon formal request by a 58.11 specific date by or on behalf of a nonpublic school secondary 58.12 pupil enrolled in a nonpublic school located in that district or 58.13 area, the same specific guidance and counseling services as are 58.14 provided for public school secondary pupils by the district 58.15 where the nonpublic school is located. The district where the 58.16 nonpublic school is located shall provide the necessary 58.17 transportation within the district boundaries between the 58.18 nonpublic school and a public school or neutral site for 58.19 nonpublic school pupils who are provided pupil support services 58.20pursuant tounder this section if the district elects to provide 58.21 pupil support services at a site other than the nonpublic school. 58.22 Each request for pupil support services shall set forth the 58.23 guidance and counseling or health services requested by or on 58.24 behalf of all eligible nonpublic school pupils enrolled in a 58.25 given nonpublic school. No district or intermediary service 58.26 area shall expend an amount for these pupil support services 58.27 which exceeds the amount allotted to it under this section. 58.28 Sec. 21. Minnesota Statutes 1996, section 123.935, 58.29 subdivision 2, is amended to read: 58.30 Subd. 2. [LOCATION OF SERVICES.] Health and guidance and 58.31 counseling services may be provided to nonpublic school 58.32 pupilspursuant tounder this section at a public school, a 58.33 neutral site, the nonpublic school or any other suitable 58.34 location.Guidance and counseling services may be provided to58.35nonpublic school pupils pursuant to this section only at a58.36public school or a neutral site.District or intermediary 59.1 service area personnel and representatives of the nonpublic 59.2 school pupils receiving pupil support services shall hold an 59.3 annual consultation regarding the type of services, provider of 59.4 services, and the location of the provision of these services. 59.5 The district board or intermediary service area governing board 59.6 shall make the final decision on the location of the provision 59.7 of these services. 59.8 Sec. 22. Minnesota Statutes 1996, section 124.17, 59.9 subdivision 2, is amended to read: 59.10 Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 59.11 in grades kindergarten through 12 and for prekindergarten pupils 59.12 with disabilities shall mean the number of pupils on the current 59.13 roll of the school, counted from the date of entry until 59.14 withdrawal. The date of withdrawal shall mean the day the pupil 59.15 permanently leaves the school or the date it is officially known 59.16 that the pupil has left or has been legally excused. However, a 59.17 pupil, regardless of age, who has been absent from school for 15 59.18 consecutive school days during the regular school year or for 59.19 five consecutive school days during summer school or 59.20 intersession classes of flexible school year programs without 59.21 receiving instruction in the home or hospital shall be dropped 59.22 from the roll and classified as withdrawn. Nothing in this 59.23 section shall be construed as waiving the compulsory attendance 59.24 provisions cited in section 120.101. Average daily membership 59.25 shall equal the sum for all pupils of the number of days of the 59.26 school year each pupil is enrolled in the district's schools 59.27 divided by the number of days the schools are in session. Days 59.28 of summer school or intersession classes of flexible school year 59.29 programs shall only be included in the computation of membership 59.30 for pupils with a disability not appropriately servedat level59.314, 5, or 6 of the continuum of placement model described in59.32Minnesota Rules, part 3525.0200primarily in the regular 59.33 classroom. 59.34 Sec. 23. Minnesota Statutes 1996, section 124.26, 59.35 subdivision 1c, is amended to read: 59.36 Subd. 1c. [PROGRAM APPROVAL.] (a) To receive aid under 60.1 this section, a district, a consortium of districts,ora 60.2 private nonprofit organization, an area learning center, or an 60.3 alternative program approved by the commissioner must submit an 60.4 application by June 1 describing the program, on a form provided 60.5 by the department. The program must be approved by the 60.6 commissioner according to the following criteria: 60.7 (1) how the needs of different levels of learning will be 60.8 met; 60.9 (2) for continuing programs, an evaluation of results; 60.10 (3) anticipated number and education level of participants; 60.11 (4) coordination with other resources and services; 60.12 (5) participation in a consortium, if any, and money 60.13 available from other participants; 60.14 (6) management and program design; 60.15 (7) volunteer training and use of volunteers; 60.16 (8) staff development services; 60.17 (9) program sites and schedules; and 60.18 (10) program expenditures that qualify for aid. 60.19 (b) The commissioner may grant adult basic education funds 60.20 to a private, nonprofit organization to provide services that 60.21 are not offered by a district or that are supplemental to a 60.22 district's program. The program provided under this provision 60.23 must be approved and funded according to the same criteria used 60.24 for district programs. 60.25 (c) Adult basic education programs may be approved under 60.26 this subdivision for up to five years. Five-year program 60.27 approval shall be granted to an applicant who has demonstrated 60.28 the capacity to: 60.29 (1) offer comprehensive learning opportunities and support 60.30 service choices appropriate for and accessible to adults at all 60.31 basic skill need levels; 60.32 (2) provide a participatory and experiential learning 60.33 approach based on the strengths, interests, and needs of each 60.34 adult, that enables adults with basic skill needs to: 60.35 (i) identify, plan for, and evaluate their own progress 60.36 toward achieving their defined educational and occupational 61.1 goals; 61.2 (ii) master the basic academic reading, writing, and 61.3 computational skills, as well as the problem-solving, decision 61.4 making, interpersonal effectiveness, and other life and learning 61.5 skills they need to function effectively in a changing society; 61.6 (iii) locate and be able to use the health, governmental, 61.7 and social services and resources they need to improve their own 61.8 and their families' lives; and 61.9 (iv) continue their education, if they desire, to at least 61.10 the level of secondary school completion, with the ability to 61.11 secure and benefit from continuing education that will enable 61.12 them to become more employable, productive, and responsible 61.13 citizens; 61.14 (3) plan, coordinate, and develop cooperative agreements 61.15 with community resources to address the needs that the adults 61.16 have for support services, such as transportation, flexible 61.17 course scheduling, convenient class locations, and child care; 61.18 (4) collaborate with business, industry, labor unions, and 61.19 employment-training agencies, as well as with family and 61.20 occupational education providers, to arrange for resources and 61.21 services through which adults can attain economic 61.22 self-sufficiency; 61.23 (5) provide sensitive and well trained adult education 61.24 personnel who participate in local, regional, and statewide 61.25 adult basic education staff development events to master 61.26 effective adult learning and teaching techniques; 61.27 (6) participate in regional adult basic education peer 61.28 program reviews and evaluations; and 61.29 (7) submit accurate and timely performance and fiscal 61.30 reports. 61.31 Sec. 24. Minnesota Statutes 1997 Supplement, section 61.32 124.26, subdivision 2, is amended to read: 61.33 Subd. 2. [ACCOUNTS; REVENUE; AID.] Each district, group of 61.34 districts,orprivate nonprofit organization, area learning 61.35 center, or alternative program approved by the commissioner 61.36 providing adult basic education programs shall establish and 62.1 maintain accounts separate from all other district accounts for 62.2 the receipt and disbursement of all funds related to these 62.3 programs. All revenue received pursuant to this section shall 62.4 be utilized solely for the purposes of adult basic education 62.5 programs. In no case shall federal and state aid plus levy 62.6 equal more than 100 percent of the actual cost of providing 62.7 these programs. 62.8 Sec. 25. Minnesota Statutes 1996, section 124.2613, as 62.9 amended by Laws 1997, First Special Session chapter 4, article 62.10 2, sections 5, 6, and 7, is amended to read: 62.11 124.2613 [FIRST-GRADE PREPAREDNESSSUPPLEMENTAL EARLY 62.12 EDUCATION PROGRAM.] 62.13 Subdivision 1. [PURPOSE.] The purposes of thefirst-grade62.14preparednesssupplemental early education program are to ensure 62.15 that every child has the opportunity before first grade to 62.16 develop the skills and abilities necessary to read and succeed 62.17 in school and to reduce the underlying causes that create a need 62.18 for compensatory revenue. 62.19 Subd. 2. [QUALIFYING DISTRICT.] A school district may 62.20 receivefirst-grade preparednesssupplemental early education 62.21 program revenue for qualifying school sites if, consistent with 62.22 subdivision 5, the school board approves a resolution requiring 62.23 the district to provide services to all children located in a 62.24 qualifying school site attendance area. 62.25 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 62.26 shall rank all school sites with kindergarten programs that do 62.27 not exclusively serve students under section 120.17. The 62.28 ranking must be from highest to lowest based on the site's free 62.29 and reduced lunch count as a percent of the fall enrollment 62.30 using the preceding October 1 enrollment data. Once a school 62.31 site is calculated to be eligible, it remains eligible for the 62.32 duration of the pilot program. For each school site, the 62.33 percentage used to calculate the ranking must be the greater of 62.34 (1) the percent of the fall kindergarten enrollment receiving 62.35 free and reduced lunch, or (2) the percent of the total fall 62.36 enrollment receiving free and reduced lunch. The list of ranked 63.1 sites must be separated into the following geographic areas: 63.2 Minneapolis district, St. Paul district, suburban Twin Cities 63.3 districts in the seven-county metropolitan area, and school 63.4 districts in greater Minnesota. 63.5 (b) The commissioner shall establish a process and 63.6 timelines to qualify school sites for the next school year. 63.7 School sites must be qualified in each geographic area from the 63.8 list of ranked sites until the estimated revenue available for 63.9 this program has been allocated. The total estimated revenue 63.10 must be distributed to qualified school sites in each geographic 63.11 area as follows: 25 percent for Minneapolis sites, 25 percent 63.12 for St. Paul sites, 25 percent for suburban Twin Cities sites, 63.13 and 25 percent for greater Minnesota. 63.14 Subd. 4. [PROGRAM.] A qualifying school site must develop 63.15 itsfirst-grade preparednesssupplemental early education 63.16 program in collaboration with other providers of school 63.17 readiness and child development services. A school site must 63.18 offer a full-day kindergarten program to participating children 63.19 who are five years of age or older for the full school day every 63.20 day, a program for participating children who are four years 63.21 old, or a combination of both. The program may offer as an 63.22 option to families home visits and other practices as 63.23 appropriate, and may provide such services with the consent of 63.24 the parent or guardian. Program providers must ensure that the 63.25 program supplements existing school readiness and child 63.26 development programs and complements the services provided with 63.27 compensatory revenue. Where possible, individuals receiving 63.28 assistance under a family assistance plan can meet the work 63.29 activity requirement of the plan by participating in 63.30 afirst-grade preparednesssupplemental early education program 63.31 as a volunteer. 63.32 Subd. 5. [EXTENDED DAY REQUIREMENTS.] The board of a 63.33 qualifying school district must develop and approve a plan to 63.34 provide extended day services to serve as many children as 63.35 possible. To accept children whose families participate in 63.36 child care assistance programs under section 119B.03 or 119B.05, 64.1 and to meet the requirements of section 245A.03, subdivision 2, 64.2 the board must formally approve the first-grade preparedness 64.3 program. All revenue received under subdivision 6 must be 64.4 allocated to the qualifying school sites within the district. 64.5 Subd. 6. [PREPAREDNESSSUPPLEMENTAL EARLY EDUCATION 64.6 PROGRAM REVENUE.] (a) A qualifying school district is eligible 64.7 forfirst-grade preparednesssupplemental early education 64.8 program revenue equal to the basic formula allowance for that 64.9 year times the number of children five years of age or older 64.10 enrolled in a kindergarten program at the site on October 1 of 64.11 the previous year times .53. 64.12 (b) This revenue must supplement and not replace 64.13 compensatory revenue that the district uses for the same or 64.14 similar purposes under chapter 124A. 64.15 (c) A pupil enrolled in thefirst grade preparedness64.16 supplemental early education program at a qualifying school site 64.17 is eligible for transportation under section 123.39, subdivision 64.18 1. 64.19 (d)First grade preparednessSupplemental early education 64.20 program revenue paid to a charter school for which a school 64.21 district is providing transportation according to section 64.22 120.064, subdivision 15, shall be decreased by an amount equal 64.23 to the product of $170 times the pupil units calculated 64.24 according to paragraph (a). This amount shall be paid to the 64.25 school district for transportation costs. 64.26 Subd. 7. [EVALUATION.] The commissioner of children, 64.27 families, and learning, in consultation with representatives of 64.28 the state board of teaching, early childhood teachers, 64.29 elementary school classroom teachers, and teacher educators, 64.30 shall develop an evaluation for qualifying school sites to use 64.31 in documenting results. The evaluation must use empirical and 64.32 qualitative methods to gather information on the following: 64.33 progress towards ensuring that every child entering the first 64.34 grade has the knowledge and skills necessary to succeed in 64.35 school; student readiness for first grade; an assessment of 64.36 enrolling students by their teacher; and measures of parental 65.1 satisfaction and parental involvement. The commissioner shall 65.2 assist a school site with its evaluation at the request of the 65.3 site. 65.4 Subd. 8. [EXPIRATION.] This section applies for fiscal 65.5 years 1997, 1998, and 1999, and expires June 30, 1999. 65.6 Sec. 26. Minnesota Statutes 1997 Supplement, section 65.7 124.3111, subdivision 2, is amended to read: 65.8 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 65.9 services through an assurance of mastery program if the pupil 65.10 has not demonstrated progress toward mastering the required 65.11 graduation standards, after receiving instruction that was 65.12 designed to enable the pupil to make progress toward mastering 65.13 the required graduation standards in a regular classroom 65.14 setting. A pupil also is eligible to receive services through 65.15 an assurance of mastery program if the pupil, based on the 65.16 professional judgment of a classroom teacher or a team of 65.17 licensed professionals, demonstrates a need for alternative 65.18 instructional strategies or interventions. To determine pupil 65.19 eligibility, a district must use a process adopted by the school 65.20 board to review curriculum and instruction, for the subjects and 65.21 at the grade level at which the district uses the revenue. 65.22 Sec. 27. Minnesota Statutes 1996, section 124.32, is 65.23 amended by adding a subdivision to read: 65.24 Subd. 13. [AID FOR LITIGATION COSTS.] (a) For fiscal years 65.25 1999 and later, school districts shall receive aid based on 70 65.26 percent of the cost associated with due process hearings 65.27 incurred under section 120.17, subdivision 3b, paragraphs (e), 65.28 (h), and (i), including hearing officer fees, court reporter 65.29 fees, expert witness fees, mileage costs, transcript costs, 65.30 costs of outside evaluations ordered by hearing officers, rental 65.31 of hearing rooms, but not including district legal or attorney 65.32 fees. 65.33 (b) In order to receive aid under this subdivision, school 65.34 districts shall submit to the commissioner at the end of each 65.35 school year, costs for fees and other expenses described in 65.36 paragraph (a). Aid under this section for each school district 66.1 is based on costs submitted from the previous school year. A 66.2 school district's aid under this section may not exceed $10 per 66.3 fund balance pupil unit for the year in which the aid is 66.4 received. 66.5 Sec. 28. Minnesota Statutes 1997 Supplement, section 66.6 124.3201, subdivision 4, is amended to read: 66.7 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 66.8 state total special education revenue for fiscal year 1998 66.9 equals $358,542,000. The state total special education revenue 66.10 for fiscal year 1999 equals$435,322,000$436,023,000. The 66.11 state total special education revenue for later fiscal years 66.12 equals: 66.13 (1) the state total special education revenue for the 66.14 preceding fiscal year; times 66.15 (2) the program growth factor; times 66.16 (3) the ratio of the state total average daily membership 66.17 for the current fiscal year to the state total average daily 66.18 membership for the preceding fiscal year. 66.19 Sec. 29. Minnesota Statutes 1996, section 124A.034, 66.20 subdivision 2, is amended to read: 66.21 Subd. 2. [LOCATION OF SERVICES.] (a) Public school 66.22 programs that provide instruction in core curriculum may be 66.23 provided to shared time pupils only at a public school building; 66.24provided, however, that special instruction and services for66.25children with a disability required pursuant to section 120.1766.26may also be provided at a neutral site as defined in section66.27123.932,public school programs, excluding programs that provide 66.28 instruction in core curriculum, may be provided to shared time 66.29 pupils at a public school building, a neutral site, the 66.30 nonpublic school, or any other suitable location. Guidance and 66.31 counseling and diagnostic and health services requiredpursuant66.32tounder section 120.17 mayalsobe provided at a nonpublic 66.33 school building. As used in this subdivision, "diagnostic 66.34 services" means speech, hearing, vision, psychological, medical 66.35 and dental diagnostic services and "health services" means 66.36 physician, nursing or optometric services provided to pupils in 67.1 the field of physical and mental health. 67.2 (b) For those children with a disability under section 67.3 120.17 who attend nonpublic school and for whom a free and 67.4 appropriate education is available at a public school, a school 67.5 district may provide special instruction and services at the 67.6 nonpublic school building only to the extent required under the 67.7 Individuals with Disabilities Education Act, Public Law Number 67.8 105-17, as amended. A school district may provide special 67.9 instruction and services for such children at a neutral site as 67.10 defined in section 123.932, subdivision 9. 67.11 Sec. 30. Minnesota Statutes 1996, section 124A.036, 67.12 subdivision 1a, is amended to read: 67.13 Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all 67.14 school purposes, unless otherwise specifically provided by law, 67.15 a homeless pupilmust be consideredis a resident of the school 67.16 districtthat enrolls the pupilin which the homeless shelter or 67.17 other program, center, or facility assisting the homeless pupil 67.18 or the pupil's family is located. 67.19 Sec. 31. Minnesota Statutes 1996, section 124A.036, is 67.20 amended by adding a subdivision to read: 67.21 Subd. 1b. [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 67.22 In those instances when the divorced parents share joint 67.23 physical custody of the child and the divorced parents reside in 67.24 different school districts, for all school purposes, unless 67.25 otherwise specifically provided by law, the child must be 67.26 considered a resident of the school district, as indicated by 67.27 the child's parents. 67.28 (b) When the child of divorced parents under paragraph (a) 67.29 resides with each parent on alternate weeks, the parents shall 67.30 be responsible for the transportation of the child to the border 67.31 of the resident school district during those weeks when the 67.32 child resides in the nonresident school district. 67.33 Sec. 32. Minnesota Statutes 1996, section 124A.036, 67.34 subdivision 4, is amended to read: 67.35 Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state 67.36 agency or a court of the state desires to place a child in a 68.1 school district which is not the child's district of 68.2 residence or to place a pupil who is a parent under section 68.3 120.101, subdivision 3, in a school district which is not the 68.4 school district in which the pupil's biological or adoptive 68.5 parent or designated guardian resides, that agency or court 68.6 shall, prior to placement, allow the district of residence an 68.7 opportunity to participate in the placement decision and notify 68.8 the district of residence, the district of attendance and the 68.9 commissioner of children, families, and learning of the 68.10 placement decision. When a state agency or court determines 68.11 that an immediate emergency placement is necessary and that time 68.12 does not permit district participation in the placement decision 68.13 or notice to the districts and the commissioner of children, 68.14 families, and learning of the placement decision prior to the 68.15 placement, the agency or court may make the decision and 68.16 placement without that participation or prior notice. The 68.17 agency or court shall notify the district of residence, the 68.18 district of attendance and the commissioner of children, 68.19 families, and learning of an emergency placement within 15 days 68.20 of the placement. 68.21 Sec. 33. Minnesota Statutes 1996, section 124C.45, 68.22 subdivision 2, is amended to read: 68.23 Subd. 2. [ACCESS TO SERVICES.] A center shall have access 68.24 to the district's regular education programs, special education 68.25 programs, technology facilities, and staff. It may contract 68.26 with individuals or post-secondary institutions. It shall seek 68.27 the involvement of community education programs, post-secondary 68.28 institutions, interagency collaboratives, community resources, 68.29 businesses, and other federal, state, and local public agencies. 68.30 Sec. 34. Minnesota Statutes 1997 Supplement, section 68.31 124C.46, subdivision 1, is amended to read: 68.32 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 68.33 services of a center must focus on academic and learning skills, 68.34 applied learning opportunities, trade and vocational skills, 68.35 work-based learning opportunities, work experience, youth 68.36 service to the community, and transition services. Applied 69.1 learning, work-based learning, and service learning may best be 69.2 developed in collaboration with a local education and 69.3 transitions partnership. In addition to offering programs, the 69.4 center shall coordinate the use of other available educational 69.5 services, special education services, social services, health 69.6 services, and post-secondary institutions in the community and 69.7 services area. 69.8 (b) Consistent with the requirements of section 127.26 to 69.9 127.39, a school district may provide an alternative education 69.10 program for a student who is within the compulsory attendance 69.11 age under section 120.06, and who is involved in severe or 69.12 repeated disciplinary action. 69.13 Sec. 35. Minnesota Statutes 1997 Supplement, section 69.14 124C.46, subdivision 2, is amended to read: 69.15 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 69.16 programs for secondary pupils and adults. A center may also 69.17 provide programs and services for elementary and secondary 69.18 pupils who are not attending the center to assist them in being 69.19 successful in school. An individual education plan team may 69.20 identify a center as an appropriate placement to the extent a 69.21 center can provide the student with the appropriate special 69.22 education services described in the student's plan. Pupils 69.23 eligible to be served are those age five to adults2122 and 69.24 older who qualify under the graduation incentives program in 69.25 section 126.22, subdivision 2, or those pupils who are eligible 69.26 to receive special education services under section 120.17. 69.27 Sec. 36. Minnesota Statutes 1996, section 124C.47, is 69.28 amended to read: 69.29 124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 69.30 An area learning center must serve as a resource for other 69.31 districts, educational, community, and business organizations. 69.32 The center may charge a fee for these services. The following 69.33 services shall be provided for a region or the state: 69.34 (1) information and research for alternative programs; 69.35 (2) regional or state workshops on awareness, 69.36 identification, programs, and support for these pupils;and70.1 (3) recommendations for staff qualifications to ensure the 70.2 most qualified staff can be selected for the programs; and 70.3 (4) recommendations for successful learning programs for 70.4 special education students placed in an alternative setting. 70.5 Sec. 37. Minnesota Statutes 1996, section 124C.48, is 70.6 amended by adding a subdivision to read: 70.7 Subd. 3. [SPECIAL EDUCATION REVENUE.] Payment of special 70.8 education revenue for nonresident pupils enrolled in the center 70.9 must be made according to section 120.17, subdivision 6. 70.10 Sec. 38. Minnesota Statutes 1996, section 126.237, is 70.11 amended to read: 70.12 126.237 [ALTERNATE INSTRUCTION REQUIRED.] 70.13 (a) Before a pupil is referred for a special education 70.14 assessment, the district must conduct and document at least two 70.15 instructional strategies, alternatives, or interventions while 70.16 the pupil is in the regular classroom. The pupil's teacher must 70.17 provide the documentation. A special education assessment team 70.18 may waive this requirement when they determine the pupil's need 70.19 for the assessment is urgent. This section may not be used to 70.20 deny a pupil's right to a special education assessment. 70.21 (b) A school district shall utilize alternative 70.22 intervention services, including the assurance of mastery 70.23 program under section 124.3111 and the supplemental early 70.24 education program under section 124.2613, to serve at-risk 70.25 students who demonstrate a need for alternative instructional 70.26 strategies or interventions. 70.27 Sec. 39. Minnesota Statutes 1996, section 127.27, 70.28 subdivision 2, is amended to read: 70.29 Subd. 2. [DISMISSAL.] "Dismissal" means the denial of the 70.30appropriatecurrent educational program to any pupil, including 70.31 exclusion, expulsion, and suspension. It does not include 70.32 removal from class. 70.33 Sec. 40. Minnesota Statutes 1997 Supplement, section 70.34 127.27, subdivision 10, is amended to read: 70.35 Subd. 10. [SUSPENSION.] "Suspension" means an action by 70.36 the school administration, under rules promulgated by the school 71.1 board, prohibiting a pupil from attending school for a period of 71.2 no more than ten school days. If a suspension is longer than 71.3 five days, the suspending administrator must provide the 71.4 superintendent with a reason for the longer suspension. This 71.5 definition does not apply to dismissal from school for one 71.6 school day or less, except as provided in federal law for a 71.7 student with a disability. Each suspension actionshallmay 71.8 include a readmission plan. The readmission plan shall include, 71.9 where appropriate, a provision for implementing alternative 71.10 educational services upon readmission and may not be used to 71.11 extend the current suspension. The school administration may 71.12 not impose consecutive suspensions against the same pupil for 71.13 the same course of conduct, or incident of misconduct, except 71.14 where the pupil will create an immediate and substantial danger 71.15 to self or to surrounding persons or property, or where the 71.16 district is in the process of initiating an expulsion, in which 71.17 case the school administration may extend the suspensionupto a 71.18 total of 15 days. In the case of a pupil with a disability,a71.19suspension may not exceed ten school daysschool districts must 71.20 comply with applicable federal law. The school administration 71.21 shall implement alternative educational servicesto the extent71.22thatwhen the suspension exceeds five days. A separate 71.23 administrative conference is required for each period of 71.24 suspension. 71.25 Sec. 41. Minnesota Statutes 1997 Supplement, section 71.26 127.27, subdivision 11, is amended to read: 71.27 Subd. 11. [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 71.28 educational services" may include, but are not limited to, 71.29 special tutoring, modified curriculum, modified instruction, 71.30 other modifications or adaptations, instruction through 71.31 electronic media, special education services as indicated by 71.32 appropriate assessment, homebound instruction, supervised 71.33 homework, or enrollment in another district or in an alternative 71.34 learning center under section 124C.45 selected to allow the 71.35 pupil to progress toward meeting graduation standards under 71.36 section 121.11, subdivision 7c, although in a different setting. 72.1 Sec. 42. Minnesota Statutes 1997 Supplement, section 72.2 127.31, subdivision 15, is amended to read: 72.3 Subd. 15. [ADMISSION OR READMISSION PLAN.] A school 72.4 administrator shall prepare and enforce an admission or 72.5 readmission plan for any pupil who issuspended,excluded,or 72.6 expelled from school. The plan may include measures to improve 72.7 the pupil's behavior and require parental involvement in the 72.8 admission or readmission process, and may indicate the 72.9 consequences to the pupil of not improving the pupil's behavior. 72.10 Sec. 43. Minnesota Statutes 1997 Supplement, section 72.11 127.32, is amended to read: 72.12 127.32 [APPEAL.] 72.13 A party to an exclusion or expulsion decision made under 72.14 sections 127.26 to 127.39 may appeal the decision to the 72.15 commissioner of children, families, and learning within 21 72.16 calendar days of school board action. Upon being served with a 72.17 notice of appeal, the district shall provide the commissioner 72.18 and the parent or guardian with a complete copy of the hearing 72.19 record within five days of its receipt of the notice of appeal. 72.20 All written submissions by the appellant must be submitted and 72.21 served on the respondent within ten days of its actual receipt 72.22 of the transcript. All written submissions by the respondent 72.23 must be submitted and served on the appellant within ten days of 72.24 its actual receipt of the written submissions of the appellant. 72.25 The decision of the school board must be implemented during the 72.26 appeal to the commissioner. 72.27 In an appeal under this section, the commissioner may 72.28 affirm the decision of the agency, may remand the decision for 72.29 additional findings, or may reverse or modify the decision if 72.30 the substantial rights of the petitionersmayhave been 72.31 prejudiced because the administrative findings, inferences, 72.32 conclusions, or decisions are: 72.33 (1) in violation of constitutional provisions; 72.34 (2) in excess of the statutory authority or jurisdiction of 72.35 the school district; 72.36 (3) made upon unlawful procedure, except as provided in 73.1 section 127.311; 73.2 (4) affected by other error of law; 73.3 (5) unsupported by substantial evidence in view of the 73.4 entire record submitted; or 73.5 (6) arbitrary or capricious. 73.6 The commissioner or the commissioner's representative shall make 73.7 a final decision based upon the recordof evidence presented at73.8the hearing. The commissioner shall issue a decision within 30 73.9 calendar days of receiving the entire record and the parties' 73.10 written submission on appeal. The commissioner's decision shall 73.11 be final and binding upon the parties after the time for appeal 73.12 expires under section 127.33. 73.13 Sec. 44. Minnesota Statutes 1997 Supplement, section 73.14 127.36, subdivision 1, is amended to read: 73.15 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 73.16 board shall report each exclusion or expulsion within 30 days of 73.17 the effective date of the action to the commissioner of 73.18 children, families, and learning. This report shall include a 73.19 statement of alternative educational services given the pupil 73.20before beginning exclusion or expulsion proceedings,and the 73.21 reason for, the effective date, and the duration of the 73.22 exclusion or expulsion. 73.23 Sec. 45. Minnesota Statutes 1997 Supplement, section 73.24 127.38, is amended to read: 73.25 127.38 [POLICIES TO BE ESTABLISHED.] 73.26 (a) The commissioner of children, families, and learning 73.27 shall promulgate guidelines to assist each school board. Each 73.28 school board shall establish uniform criteria for dismissal and 73.29 adopt written policies and rules to effectuate the purposes of 73.30 sections 127.26 to 127.39. The policies shall emphasize 73.31 preventing dismissals through early detection of problems and 73.32 shall be designed to address students' inappropriate behavior 73.33 from recurring. The policies shall recognize the continuing 73.34 responsibility of the school for the education of the pupil 73.35 during the dismissal period. The alternative educational 73.36 services, if the pupil wishes to take advantage of them, must be 74.1 adequate to allow the pupil to make progress towards meeting the 74.2 graduation standards adopted under section 121.11, subdivision 74.3 7c, and help prepare the pupil for readmission. 74.4 (b) An area learning center under section 124C.45 may not 74.5 prohibit an expelled or excluded pupil from enrolling solely 74.6 because a district expelled or excluded the pupil. The board of 74.7 the area learning center may use the provisions of The Pupil 74.8 Fair Dismissal Act to exclude a pupil or to require an admission 74.9 plan. 74.10 (c) The commissioner shall actively encourage and assist 74.11 school districts to cooperatively establish alternative 74.12 educational services within school buildings or at alternative 74.13 program sites that offer instruction to pupils who are dismissed 74.14 from school for willfully engaging in dangerous, disruptive, or 74.15 violent behavior, including for possessing a firearm in a school 74.16 zone. 74.17 Sec. 46. Minnesota Statutes 1996, section 256B.0625, 74.18 subdivision 26, is amended to read: 74.19 Subd. 26. [SPECIAL EDUCATION SERVICES.] Medical assistance 74.20 covers medical services identified in a recipient's 74.21 individualized education plan and covered under the medical 74.22 assistance state plan. The services may be provided by a 74.23 Minnesota school district that is enrolled as a medical 74.24 assistance provider or its subcontractor, and only if the 74.25 services meet all the requirements otherwise applicable if the 74.26 service had been provided by a provider other than a school 74.27 district, in the following areas: medical necessity, 74.28 physician's orders, documentation, personnel qualifications, and 74.29 prior authorization requirements. Services of a speech-language 74.30 pathologist provided under this section are covered 74.31 notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 74.32 L, if the person: 74.33 (1) holds a masters degree in speech-language pathology; 74.34 (2) is licensed by the Minnesota board of teaching as an 74.35 educational speech-language pathologist; and 74.36 (3) either has a certificate of clinical competence from 75.1 the American Speech and Hearing Association, has completed the 75.2 equivalent educational requirements and work experience 75.3 necessary for the certificate or has completed the academic 75.4 program and is acquiring supervised work experience to qualify 75.5 for the certificate. Medical assistance coverage for medically 75.6 necessary services provided under other subdivisions in this 75.7 section may not be denied solely on the basis that the same or 75.8 similar services are covered under this subdivision. 75.9 Sec. 47. Laws 1993, chapter 224, article 3, section 32, is 75.10 amended to read: 75.11 Sec. 32. [ASL GUIDELINES.] 75.12 (a) In determining appropriate licensure requirements for 75.13 teachers of deaf and hard of hearing students under Minnesota 75.14 Statutes, section 125.189, the board of teaching shall develop 75.15 the requirements according to the guidelines described in this 75.16 section. 75.17 (b) Each teacher must complete the American sign language 75.18 sign communication proficiency interview or a comparable 75.19 American sign language evaluation that the board of teaching, 75.20 the Minnesota association of deaf citizens, and the Minnesota 75.21 council for the hearing impaired accept as a means for 75.22 establishing the teacher's baseline level of American sign 75.23 language skills. A teacher shall not be charged for this 75.24 evaluation. 75.25 (c) Each teacher must complete 60 continuing education 75.26 credits in American sign language, American sign language 75.27 linguistics, or deaf culture for every 120 continuing education 75.28 credits the teacher is required to complete to renew a teaching 75.29 license. 75.30 (d)As a condition of obtainingIn order to obtain an 75.31 initial license to teach deaf and hard of hearing students, or 75.32 to apply for a Minnesota teaching license, after being licensed 75.33 to teach in another state, a person must demonstrate in the sign 75.34 communication proficiency interview an intermediate plus level 75.35 of proficiency in American sign language. 75.36 (e) Each teacher applying to renew a teaching licenseand76.1each teacher holding a teaching license from another state who76.2wishes to apply for a Minnesota teaching licensemust take the 76.3 American sign language sign communication proficiency interview 76.4 or a comparable American sign language evaluation every five 76.5 years until the teacher demonstrates a minimum, or survival 76.6 plus, level of proficiency in American sign language. 76.7 (f) A teacher working directly with students whose primary 76.8 language is American sign language should demonstrate at least 76.9 an advanced level of proficiency in American sign language. The 76.10 board should not consider a minimum, or survival plus, level of 76.11 proficiency adequate for providing direct instruction to 76.12 students whose primary language is American sign language. 76.13 (g) To renew a teaching license, a teacher must comply with 76.14 paragraphs (c) and (e) in addition to other applicable board 76.15 requirements. A teacher's ability to demonstrate a minimum, or 76.16 survival plus, level of proficiency in American sign language is 76.17 not a condition for renewing the teacher's license. 76.18 (h) A teacher who demonstrates an increased proficiency in 76.19 American sign language skill in the American sign language sign 76.20 communication proficiency interview or a comparable American 76.21 sign language evaluation shall receive credit toward completing 76.22 the requirements of paragraph (c). The number of continuing 76.23 education credits the teacher receives is based on the teacher's 76.24 increased level of proficiency from the teacher's baseline level: 76.25 (1) 35 continuing education credits for demonstrating an 76.26 intermediate level of proficiency; 76.27 (2) 40 continuing education credits for demonstrating an 76.28 intermediate plus level of proficiency; 76.29 (3) 45 continuing education credits for demonstrating an 76.30 advanced level of proficiency; 76.31 (4) 50 continuing education credits for demonstrating an 76.32 advanced plus level of proficiency; 76.33 (5) 55 continuing education credits for demonstrating a 76.34 superior level of proficiency; and 76.35 (6) 60 continuing education credits for demonstrating a 76.36 superior plus level of proficiency. 77.1 Sec. 48. Laws 1997, First Special Session chapter 4, 77.2 article 2, section 51, subdivision 15, is amended to read: 77.3 Subd. 15. [SPECIAL EDUCATION AID.] For special education 77.4 aid according to Minnesota Statutes, section 124.32: 77.5 $282,505,000 ..... 1998 77.6$382,519,000$383,220,000 ..... 1999 77.7 The 1998 appropriation includes $24,346,000 for 1997 and 77.8 $258,159,000 for 1998. 77.9 The 1999 appropriation includes$28,684,000$28,696,000 for 77.10 1998 and$353,835,000$353,973,000 for 1999. 77.11 $458,000 of the 1999 current year account is appropriated 77.12 to the department of human services to cover additional medical 77.13 assistance costs associated with state law changes regarding 77.14 speech-language pathologists in Minnesota Statutes, section 77.15 256B.0625, subdivision 26. 77.16 $93,000 of the 1999 current year account is appropriated to 77.17 the department of human services to transfer into the health 77.18 care access fund for the purposes of state law changes regarding 77.19 speech-language pathologists in Minnesota Statutes, section 77.20 256B.0625, subdivision 26. 77.21 For fiscal years 2000 and 2001, the department of children, 77.22 families, and learning must reimburse the department of human 77.23 services for medical assistance and MinnesotaCare costs 77.24 associated with state law changes regarding the speech-language 77.25 pathologists in Minnesota Statutes, section 256B.0625, 77.26 subdivision 26. 77.27 Sec. 49. Laws 1997, First Special Session chapter 4, 77.28 article 2, section 51, subdivision 25, is amended to read: 77.29 Subd. 25. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 77.30 HOMELESS CHILDREN.] For matching grants for education programs 77.31 for homeless children: 77.32$400,000$1,100,000 ..... 1998 77.33 This appropriation is available until June 30, 1999. 77.34 Sec. 50. Laws 1997, First Special Session chapter 4, 77.35 article 2, section 51, subdivision 29, is amended to read: 77.36 Subd. 29. [FIRST GRADE PREPAREDNESSSUPPLEMENTAL EARLY 78.1 EDUCATION.] (a) For grants for thefirst grade preparedness78.2 supplemental early education program under Minnesota Statutes, 78.3 section 124.2613, and for school sites that have provided a 78.4 full-day kindergarten option for kindergarten students enrolled 78.5 in fiscal years 1996 and 1997: 78.6 $5,000,000 ..... 1998 78.7$5,000,000$10,000,000 ..... 1999 78.8 (b) To be a qualified site, licensed teachers must have 78.9 taught the optional full-day kindergarten classes. A district 78.10 that charged a fee for students participating in an optional 78.11 full-day program is eligible to receive the grant to provide 78.12 full-day kindergarten for all students as required by Minnesota 78.13 Statutes, section 124.2613, subdivision 4. Districts with 78.14 eligible sites must apply to the commissioner of children, 78.15 families, and learning for a grant. 78.16 (c) This appropriation must first be used to fund programs 78.17 operating during the 1996-1997 school year under paragraph (b) 78.18 and Minnesota Statutes, section 124.2613. Any remaining funds 78.19 may be used to expand the number of sites providingfirst grade78.20preparednesssupplemental early education programs. 78.21 (d) The 1999 appropriation includes $5,000,000 for 78.22 expanding the number of qualifying school sites under Minnesota 78.23 Statutes, section 124.2613, subdivision 3. 78.24 Sec. 51. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 78.25 AND SERVICES.] 78.26 (a) The state board of education must amend all rules 78.27 relating to providing special instruction and services to 78.28 children with a disability so that the rules do not impose 78.29 requirements that exceed federal law. Consistent with the 78.30 report from the commissioner to compare federal and state 78.31 special education law, the state board may use the expedited 78.32 process under Minnesota Statutes 1997, section 14.389, to amend 78.33 these rules. 78.34 (b) As of July 1, 1999, any rules relating to providing 78.35 special instruction and services to children with a disability 78.36 are invalid to the extent they exceed the requirements in 79.1 federal law. 79.2 Sec. 52. [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 79.3 EDUCATION LAW.] 79.4 Subdivision 1. [REPORT.] The commissioner of children, 79.5 families, and learning shall prepare a report comparing existing 79.6 and currently proposed federal laws and regulations and state 79.7 laws and rules governing special education, which indicates 79.8 those state laws and rules governing special education that 79.9 exceed or expand upon minimum requirements under federal special 79.10 education law or regulations. The commissioner shall make the 79.11 report available by September 30, 1998, to the public, the state 79.12 board of education, and the education committees of the 79.13 legislature for consideration of amending state rules. 79.14 Sec. 53. [SPEECH-LANGUAGE PATHOLOGISTS.] 79.15 The board of teaching shall allow individuals who hold a 79.16 certificate of clinical competence from the American 79.17 Speech-Language-Hearing Association to be licensed as 79.18 speech-language pathologists. 79.19 Sec. 54. [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 79.20 SERVICES.] 79.21 The board of teaching, in order to comply with section 46, 79.22 shall by rule allow individuals who hold a certificate of 79.23 clinical competence from the American Speech-Language-Hearing 79.24 Association to be licensed as speech-language pathologists. 79.25 Sec. 55. [ADVISORY TASK FORCE ON ACCESS TO 79.26 MEDICALLY-RELATED SPECIAL EDUCATION SERVICES.] 79.27 Subdivision 1. [ESTABLISHMENT.] (a) The commissioner of 79.28 children, families, and learning shall create an advisory task 79.29 force under Minnesota Statutes, section 15.014, to make 79.30 recommendations on the role of public and private health plans 79.31 in financing and delivering special education services under 79.32 Minnesota Statutes, sections 120.17, 120.1701, 120.1703 and 79.33 120.1705 to the extent such services are also covered under a 79.34 health plan contract or state health care program. The advisory 79.35 task force shall include one representative from each of the 79.36 following: one representative from each of the departments of 80.1 health, human services, commerce, employee relations, and 80.2 department of children, families and learning, recommended by 80.3 their respective commissioner; a representative of the Minnesota 80.4 council of health plans; a representative of the insurance 80.5 federation of Minnesota; a representative of a Minnesota 80.6 employer; a representative of the council on disabilities; a 80.7 representative recommended jointly by ARC and PACER; a 80.8 representative of the Minnesota association of special 80.9 educators; a representative of the Minnesota school boards 80.10 association; and a member of the interagency coordinating 80.11 commission, recommended by the commission chair. The 80.12 commissioner of children, families and learning shall appoint an 80.13 additional member who shall serve as the advisory task force 80.14 chair, and who shall convene the task force beginning May 1998. 80.15 (b) The advisory task force shall study and make 80.16 recommendations on the following issues: 80.17 (1) the current and appropriate future role of purchasers 80.18 of health coverage, including medical assistance, other state 80.19 health care programs, and employers in paying for medically 80.20 related special education services; 80.21 (2) systems and procedures needed to facilitate appropriate 80.22 sharing of information necessary for coordinating care and 80.23 monitoring the quality of care; 80.24 (3) accountability for the quality and cost of health care 80.25 services provided under an individual education plan, an 80.26 individual family service plan or other standardized written 80.27 plan for a child with disabilities; 80.28 (4) technical aspects of the billing and reimbursement 80.29 system between school districts and health plans, including 80.30 payment of enrollee cost sharing; and 80.31 (5) any statutory changes needed to effectively implement 80.32 task force recommendations. 80.33 Subd. 2. [REPORT; EXPIRATION.] The commissioner shall 80.34 submit a written report, with the recommendations of the 80.35 advisory task force, to the legislature in compliance with 80.36 section 3.195 by December 1, 1998, that discusses and makes 81.1 recommendations on those issues listed in subdivision 1, 81.2 paragraph (b). The advisory task force expires January 15, 1999. 81.3 Sec. 56. [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 81.4 Special education base revenue for independent school 81.5 district No. 535, Rochester, is increased by $150,000 for fiscal 81.6 year 1998 to reflect the increased special education costs 81.7 associated with the opening of a new facility for juvenile 81.8 offenders in Olmsted county. 81.9 Sec. 57. [OSSEO LEVY.] 81.10 For taxes payable in 1999 only, independent school district 81.11 No. 279, Osseo, may levy a tax in an amount not to exceed 81.12 $300,000. The proceeds of this levy must be used to provide 81.13 instructional services for at-risk children. 81.14 Sec. 58. [DEPARTMENT OF HUMAN SERVICES.] 81.15 The department of human services shall report to the 81.16 legislature on January 15 for the years 1999, 2000, and 2001, 81.17 the medical assistance MinnesotaCare reimbursed costs of special 81.18 education services, which are covered services under Minnesota 81.19 Statutes, chapter 256B. If the November 1998 forecast for the 81.20 state medical assistance expenditures for special education 81.21 services which are covered services under Minnesota Statutes, 81.22 chapter 256B, exceeds $8,000,000 per year, the department of 81.23 children, families, and learning must develop a plan to allocate 81.24 additional resources to cover the excess costs. 81.25 Sec. 59. [APPROPRIATIONS.] 81.26 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 81.27 LEARNING.] The sums indicated in this section are appropriated 81.28 from the general fund to the department of children, families, 81.29 and learning for the fiscal years designated. 81.30 Subd. 2. [STATEWIDE THIRD-PARTY BILLING SYSTEM; 81.31 ASSISTANCE.] For developing and implementing an effective and 81.32 efficient statewide third-party billing system under section 2: 81.33 $200,000 ..... 1999 81.34 Funds remain available until expended. 81.35 Subd. 3. [LITIGATION COSTS.] For paying a portion of the 81.36 litigation costs a district actually incurs under section 27: 82.1 $ 500,000 ..... 1999 82.2 If the amount appropriated is insufficient to fully fund 82.3 the aid for litigation costs according to section 124.32, 82.4 subdivision 13, the commissioner shall prorate the appropriation 82.5 to districts based on the amount of aid calculated for each 82.6 district. 82.7 Sec. 60. [REPEALER.] 82.8 Subdivision 1. Minnesota Rules, part 3525.2750, subpart 1, 82.9 item B, is repealed. 82.10 Subd. 2. Minnesota Statutes 1996, section 124.32, 82.11 subdivision 13, is repealed June 30, 2004. 82.12 Sec. 61. [EFFECTIVE DATE.] 82.13 Sections 9, 46, 53, 54, 55, and 60, subdivision 1, are 82.14 effective the day following final enactment. 82.15 ARTICLE 3 82.16 INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY 82.17 Section 1. Minnesota Statutes 1996, section 120.1701, 82.18 subdivision 5, is amended to read: 82.19 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 82.20 A school district, group of districts, or special education 82.21 cooperative, in cooperation with the health and human service 82.22 agencies located in the county or counties in which the district 82.23 or cooperative is located, shall establish an interagency early 82.24 intervention committee for children with disabilities under age 82.25 five and their families under this section, and for children 82.26 with disabilities ages three to 22 consistent with the 82.27 requirements under sections 120.1703 and 120.1705. Committees 82.28 shall include representatives of local and regional health, 82.29 education, and county human service agencies; county boards; 82.30 school boards; early childhood family education programs; 82.31 parents of young children with disabilities under age 12; 82.32 current service providers; and may also include representatives 82.33 from other private or public agencies and school nurses. The 82.34 committee shall elect a chair from among its members and shall 82.35 meet at least quarterly. 82.36 (b) The committee shall develop and implement interagency 83.1 policies and procedures concerning the following ongoing duties: 83.2 (1) develop public awareness systems designed to inform 83.3 potential recipient families of available programs and services; 83.4 (2) implement interagency child find systems designed to 83.5 actively seek out, identify, and refer infants and young 83.6 children with, or at risk of, disabilities and their families; 83.7 (3) establish and evaluate the identification, referral, 83.8 child and family assessment systems, procedural safeguard 83.9 process, and community learning systems to recommend, where 83.10 necessary, alterations and improvements; 83.11 (4) assure the development of individualized family service 83.12 plans for all eligible infants and toddlers with disabilities 83.13 from birth through age two, and their families, and individual 83.14 education plans and individual service plans when necessary to 83.15 appropriately serve children with disabilities, age three and 83.16 older, and their families and recommend assignment of financial 83.17 responsibilities to the appropriate agencies. Agencies are 83.18 encouraged to develop individual family service plans for 83.19 children with disabilities, age three and older; 83.20 (5) implement a process for assuring that services involve 83.21 cooperating agencies at all steps leading to individualized 83.22 programs; 83.23 (6) facilitate the development of a transitional plan if a 83.24 service provider is not recommended to continue to provide 83.25 services; 83.26 (7) identify the current services and funding being 83.27 provided within the community for children with disabilities 83.28 under age five and their families; 83.29 (8) develop a plan for the allocation and expenditure of 83.30 additional state and federal early intervention funds under 83.31 United States Code, title 20, section 1471 et seq. (Part H, 83.32 Public Law Number 102-119) and United States Code, title 20, 83.33 section 631, et seq. (Chapter I, Public Law Number 89-313); and 83.34 (9) develop a policy that is consistent with section 13.05, 83.35 subdivision 9, and federal law to enable a member of an 83.36 interagency early intervention committee to allow another member 84.1 access to data classified as not public. 84.2 (c) The local committee shall also: 84.3 (1) participate in needs assessments and program planning 84.4 activities conducted by local social service, health and 84.5 education agencies for young children with disabilities and 84.6 their families; 84.7 (2) review and comment on the early intervention section of 84.8 the total special education system for the district, the county 84.9 social service plan, the section or sections of the community 84.10 health services plan that address needs of and service 84.11 activities targeted to children with special health care needs, 84.12 and the section of the maternal and child health special project 84.13 grants that address needs of and service activities targeted to 84.14 children with chronic illness and disabilities; and 84.15 (3) prepare a yearly summary on the progress of the 84.16 community in serving young children with disabilities, and their 84.17 families, including the expenditure of funds, the identification 84.18 of unmet service needs identified on the individual family 84.19 services plan and other individualized plans, and local, state, 84.20 and federal policies impeding the implementation of this section. 84.21 (d) The summary must be organized following a format 84.22 prescribed by the commissioner of the state lead agency and must 84.23 be submitted to each of the local agencies and to the state 84.24 interagency coordinating council by October 1 of each year. 84.25 The departments of children, families, and learning, 84.26 health, and human services must provide assistance to the local 84.27 agencies in developing cooperative plans for providing services. 84.28 Sec. 2. [120.1703] [COORDINATED INTERAGENCY SERVICES.] 84.29 Subdivision 1. [CITATION.] Sections 120.1703 and 120.1705 84.30 shall be cited as the "Interagency Services for Children with 84.31 Disabilities Act." 84.32 Subd. 2. [PURPOSE.] It is the policy of the state to 84.33 develop and implement a coordinated, multidisciplinary, 84.34 interagency intervention service system for children ages three 84.35 to 22 with disabilities. 84.36 Subd. 3. [DEFINITIONS.] For purposes of sections 120.1703 85.1 and 120.1705, the following terms have the meanings given them: 85.2 (a) "Health plan" means (i) a health plan under section 85.3 62Q.01, subdivision 3; (ii) a county-based purchasing plan under 85.4 section 256B.692; (iii) a self insured health plan established 85.5 by a local government under section 471.617; or (iv) self 85.6 insured health coverage provided by the state to its employees 85.7 or retirees. 85.8 (b) For purposes of this section, "health plan company" 85.9 means an entity that issues a health plan as defined in 85.10 paragraph (a). 85.11 (c) "Individual interagency intervention plan" means a 85.12 standardized written plan describing those programs or services 85.13 and the accompanying funding sources available to eligible 85.14 children with disabilities. 85.15 (d) "Interagency intervention service system" means a 85.16 system that coordinates services and programs required in state 85.17 and federal law to meet the needs of eligible children with 85.18 disabilities ages three to 22, including: 85.19 (1) services provided under the following programs or 85.20 initiatives administered by state or local agencies: 85.21 (i) the maternal and child health program under title V of 85.22 the Social Security Act, United States Code, title 42, sections 85.23 701 to 709; 85.24 (ii) the Individuals with Disabilities Education Act under 85.25 United States Code, title 20, chapter 33, subchapter II, 85.26 sections 1411 to 1420; 85.27 (iii) medical assistance under the Social Security Act, 85.28 United States Code, title 42, chapter 7, subchapter XIX, section 85.29 1396 et seq.; 85.30 (iv) the Developmental Disabilities Assistance and Bill of 85.31 Rights Act, United States Code, title 42, chapter 75, subchapter 85.32 II, sections 6021 to 6030, Part B; 85.33 (v) the Head Start Act, United States Code, title 42, 85.34 chapter 105, subchapter II, sections 9831 to 9852; 85.35 (vi) rehabilitation services provided under chapter 268A; 85.36 (vii) juvenile court act services provided under sections 86.1 260.011 to 260.301; 86.2 (viii) the children's mental health collaboratives under 86.3 section 245.493; 86.4 (ix) the family service collaboratives under section 86.5 121.8355; 86.6 (x) the family community support plan under section 86.7 245.4881, subdivision 4; 86.8 (xi) the Minnesota care program under chapter 256L; 86.9 (xii) the community health services grants under chapter 86.10 145; and 86.11 (xiii) the community social services act funding under the 86.12 Social Security Act, USC, title 42, sections 1397 to 1397f; 86.13 (2) services provided under a health plan in conformity 86.14 with an individual family service plan or an individual 86.15 education plan; and 86.16 (3) additional appropriate services that local agencies and 86.17 counties provide on an individual need basis upon determining 86.18 eligibility and receiving a request from the interagency early 86.19 intervention committee and the child's parent. 86.20 (e) "Children with disabilities" has the meaning given in 86.21 section 120.03. 86.22 (f) A "standardized written plan" means those individual 86.23 services or programs available through the interagency 86.24 intervention service system to an eligible child other than the 86.25 services or programs described in the child's individual 86.26 education plan or the child's individual family service plan. 86.27 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 86.28 shall convene an 18-member interagency committee to develop and 86.29 implement a coordinated, multidisciplinary, interagency 86.30 intervention service system for children ages three to 22 with 86.31 disabilities. The commissioners of commerce, children, 86.32 families, and learning, health, human rights, human services, 86.33 economic security, and corrections shall each appoint two 86.34 committee members from their departments; the association of 86.35 Minnesota counties shall appoint two county representatives, one 86.36 of whom must be an elected official, as committee members; and 87.1 the Minnesota school boards association and the school nurse 87.2 association of Minnesota shall each appoint one committee 87.3 member. The committee shall select a chair from among its 87.4 members. 87.5 (b) The committee shall: 87.6 (1) identify and assist in removing state and federal 87.7 barriers to local coordination of services provided to children 87.8 with disabilities; 87.9 (2) identify adequate, equitable, and flexible funding 87.10 sources to streamline these services; 87.11 (3) develop guidelines for implementing policies that 87.12 ensure a comprehensive and coordinated system of all state and 87.13 local agency services, including multidisciplinary assessment 87.14 practices for children with disabilities ages three to 22; 87.15 (4) develop, consistent with federal law, a standardized 87.16 written plan for providing services to a child with 87.17 disabilities; 87.18 (5) identify how current systems for dispute resolution can 87.19 be coordinated and develop guidelines for that coordination; 87.20 (6) develop an evaluation process to measure the success of 87.21 state and local interagency efforts in improving the quality and 87.22 coordination of services to children with disabilities ages 87.23 three to 22; 87.24 (7) develop guidelines to assist the governing boards of 87.25 the interagency early intervention committees in carrying out 87.26 the duties assigned in section 120.1705, subdivision 1, 87.27 paragraph (b); and 87.28 (8) carry out other duties necessary to develop and 87.29 implement within communities a coordinated, multidisciplinary, 87.30 interagency intervention service system for children with 87.31 disabilities. 87.32 (c) The committee shall consult on an on-going basis with 87.33 the state education advisory committee for special education and 87.34 the governor's interagency coordinating council in carrying out 87.35 its duties under this section, including assisting the governing 87.36 boards of the interagency early intervention committees. 88.1 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 88.2 commissioner of children, families, and learning, based on 88.3 recommendations from the state interagency committee, shall 88.4 issue a request for proposals by January 1, 1999, for grants to 88.5 the governing boards of interagency intervention committees 88.6 under section 120.1705 or a combination of one or more counties 88.7 and school districts to establish five voluntary interagency 88.8 intervention demonstration projects. One grant shall be used to 88.9 implement a coordinated service system for all eligible children 88.10 with disabilities up to age 5 who received services under 88.11 section 120.1701. One grant shall be used to implement a 88.12 coordinated service system for a population of minority children 88.13 with disabilities from ages 12 to 22, who may have behavioral 88.14 problems and are in need of transitional services. Each project 88.15 must be operational by July 1, 1999. The governing boards of 88.16 the interagency early intervention committees and the counties 88.17 and school districts receiving project grants must develop 88.18 efficient ways to coordinate services and funding for children 88.19 with disabilities ages three to 22, consistent with the 88.20 requirements of sections 120.1703 and 120.1705 and the 88.21 guidelines developed by the state interagency committee under 88.22 this section. 88.23 (b) The state interagency committee shall evaluate the 88.24 demonstration projects and provide the evaluation results to 88.25 interagency early intervention committees. 88.26 Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in sections 88.27 120.1703 and 120.1705 relieves a health plan company, third 88.28 party administrator or other third-party payer of an obligation 88.29 to pay for, or changes the validity of an obligation to pay for, 88.30 services provided to children with disabilities ages three to 22 88.31 and their families. 88.32 Subd. 7. [AGENCY OBLIGATION.] Nothing in sections 120.1703 88.33 and 120.1705 removes the obligation of the state, counties, 88.34 local school districts, a regional agency, or a local agency or 88.35 organization to comply with any federal or state law that 88.36 mandates responsibility for finding, assessing, delivering, 89.1 assuring, or paying for education or related services for 89.2 children with disabilities and their families. 89.3 Sec. 3. [120.1705] [INTERAGENCY EARLY INTERVENTION 89.4 COMMITTEE RESPONSIBILITIES.] 89.5 Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing 89.6 boards of the interagency early intervention committees are 89.7 responsible for developing and implementing interagency policies 89.8 and procedures to coordinate services at the local level for 89.9 children with disabilities ages three to 22 under guidelines 89.10 established by the state interagency committee under section 89.11 120.1703, subdivision 4. Consistent with the requirements in 89.12 sections 120.1703 and 120.1705, the governing boards of the 89.13 interagency early intervention committees shall organize as a 89.14 joint powers board under section 471.59 or enter into an 89.15 interagency agreement that establishes a governance structure. 89.16 (b) The governing board of each interagency early 89.17 intervention committee as defined in section 120.1701, 89.18 subdivision 5, paragraph (a), which may include a juvenile 89.19 justice professional, shall: 89.20 (1) identify and assist in removing state and federal 89.21 barriers to local coordination of services provided to children 89.22 with disabilities; 89.23 (2) identify adequate, equitable, and flexible use of 89.24 funding by local agencies for these services; 89.25 (3) implement policies that ensure a comprehensive and 89.26 coordinated system of all state and local agency services, 89.27 including multidisciplinary assessment practices, for children 89.28 with disabilities ages three to 22; 89.29 (4) use a standardized written plan for providing services 89.30 to a child with disabilities developed under section 120.1703; 89.31 (5) access the coordinated dispute resolution system and 89.32 incorporate the guidelines for coordinating services at the 89.33 local level, consistent with section 120.1703; 89.34 (6) use the evaluation process to measure the success of 89.35 the local interagency effort in improving the quality and 89.36 coordination of services to children with disabilities ages 90.1 three to 22 consistent with section 120.1703; 90.2 (7) develop a transitional plan for children moving from 90.3 the interagency early childhood intervention system under 90.4 section 120.1701 into the interagency intervention service 90.5 system under this section; 90.6 (8) coordinate services and facilitate payment for services 90.7 from public and private institutions, agencies, and health plan 90.8 companies; and 90.9 (9) share needed information consistent with state and 90.10 federal data practices requirements. 90.11 Subd. 2. [SERVICES.] (a) Parents, physicians, other health 90.12 care professionals including school nurses, and education and 90.13 human services providers jointly must determine appropriate and 90.14 necessary services for eligible children with disabilities ages 90.15 three to 22. The services provided to the child under this 90.16 section must conform with the child's standardized written 90.17 plan. The governing board of an interagency early intervention 90.18 committee must provide those services contained in a child's 90.19 individual education plan and those services for which a legal 90.20 obligation exists to the extent funding is available. 90.21 (b) Nothing in section 120.1703 or section 120.1705 90.22 increases or decreases the obligation of the state, county, 90.23 regional agency, local school district, or local agency or 90.24 organization to pay for education, health care or social 90.25 services. 90.26 (c) A health plan may not exclude any medically necessary 90.27 covered service solely because the service is or could be 90.28 identified in a child's individual family service plan, 90.29 individual education plan, a plan established under section 504 90.30 of the federal Rehabilitation Act of 1973, or a student's 90.31 individual health plan. 90.32 Subd. 3. [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 90.33 all governing boards of interagency early intervention 90.34 committees statewide must implement a coordinated service system 90.35 for children up to age five with disabilities consistent with 90.36 the requirements of sections 120.1703 and 120.1705 and the 91.1 evaluation results from the demonstration projects under section 91.2 120.1703, subdivision 5. Children with disabilities up to the 91.3 age of 22 shall be eligible for coordinated services and their 91.4 eligibility to receive such services under this section shall be 91.5 phased-in over a four-year period as follows: 91.6 (1) July 1, 2001, children up to age nine become eligible; 91.7 (2) July 1, 2002, children up to age 14 become eligible; 91.8 and 91.9 (3) July 1, 2003, children up to age 22 become eligible. 91.10 Sec. 4. Minnesota Statutes 1996, section 121.932, is 91.11 amended by adding a subdivision to read: 91.12 Subd. 7. [ESTABLISHMENT.] (a) The commissioner of 91.13 children, families, and learning shall establish a program to 91.14 provide statewide licenses to commercial electronic databases of 91.15 periodicals, encyclopedias, and associated reference materials 91.16 for school media centers and public libraries. The commissioner 91.17 shall solicit proposals for access licenses to commercial 91.18 vendors of the databases. Responses to those proposals shall be 91.19 evaluated by staff of the office of library development and 91.20 services, in the department of children, families, and learning, 91.21 Minitex staff, and a representative panel of school media 91.22 specialists and public librarians. 91.23 (b) Access to the selected databases shall be made 91.24 available to a school media center or a public library as 91.25 defined in Minnesota Statutes, section 134.001, subdivision 2. 91.26 With appropriate authentication, any user of a library may have 91.27 access to the databases from a remote site. 91.28 (c) The commissioner shall charge fees sufficient to 91.29 recover the costs of the licenses. The fees shall be deposited 91.30 in the general fund and are appropriated to the commissioner for 91.31 the purposes of this subdivision. 91.32 Sec. 5. Minnesota Statutes 1997 Supplement, section 91.33 126.79, subdivision 6, is amended to read: 91.34 Subd. 6. [PROGRAM COMPONENTS.] Each learn and earn 91.35 graduation achievement program must provide the opportunity for 91.36 participating students to complete: 92.1 (1) 250 hours each year, not including regular required 92.2 classroom hours, in basic education competency skills; 92.3 (2) 250 hours each year of service to the community 92.4service; and 92.5 (3) 250 hours each year of cultural enrichment and personal 92.6 development, including but not limited to adult mentoring; 92.7 participating in community cultural events; developing life 92.8 skills for use in the home, workplace, and community; and 92.9 learning to set goals, manage time, and make appropriate 92.10 behavior choices for varying social situations. 92.11 Sec. 6. Minnesota Statutes 1997 Supplement, section 92.12 126.79, subdivision 7, is amended to read: 92.13 Subd. 7. [PROGRAM INCENTIVES.] (a) Each participating 92.14 student shall receive a monetary stipend for each hour spent in 92.15 a program component activity, plus a bonus upon completion of 92.16 each component during each year of the program. 92.17 (b) An additional amount equal to or greater than each 92.18 student's earned stipends and bonuses must be deposited for the 92.19 student in a post-secondary opportunities interest-bearing 92.20 account, established by the commissioner through the higher 92.21 education services office. A student may, upon graduation from 92.22 high school, use the funds accumulated for the student toward 92.23 the costs, including tuition, books, and lab fees, of attending 92.24 a Minnesota post-secondary institution orparticipating in a92.25Minnesota post-secondary programin a career training program. 92.26 Funds accumulated for a student shall be available to the 92.27 student from the time the student graduates from high school 92.28 until ten years after the date the student entered the learn and 92.29 earn graduation achievement program. After ten years, the 92.30 commissioner shall close the student's account and any remaining 92.31 money in the account shall revert to the general fund. 92.32 The commissioner shall establish a procedure for providing 92.33 the monetary stipends and bonuses to students. The commissioner 92.34 may delegate this authority to grantees. 92.35 Sec. 7. Minnesota Statutes 1997 Supplement, section 92.36 126.79, subdivision 8, is amended to read: 93.1 Subd. 8. [PROGRAM COORDINATOR.] The local learn and earn 93.2 program coordinator must maintain contact with all participating 93.3 students and their families; work with the school to link 93.4 students with the resources needed to improve their educational 93.5 skills; arrange for service to the communityserviceand 93.6 cultural enrichment opportunities for students; maintain records 93.7 regarding student completion of program component hours; and 93.8 perform other administrative duties as necessary. A program 93.9 coordinator must, to the extent possible, agree to remain with 93.10 the program for four years to provide continuity of adult 93.11 contact to the participating students. 93.12 Sec. 8. Minnesota Statutes 1997 Supplement, section 93.13 126.79, subdivision 9, is amended to read: 93.14 Subd. 9. [EVALUATION AND REPORTS.] The commissioner shall 93.15 collect information about participating studentsand a93.16demographically similar control groupand shall evaluate the 93.17 short-term and long-term benefits participating students receive 93.18 from the learn and earn graduation achievement program, based on 93.19 the outcome measures specified in subdivision 2, and any other 93.20 criteria established by the commissioner as part of the grant 93.21 application process.The evaluation must include a statistical93.22comparison of students participating in the program and the93.23control group.The commissioner shalltrackfollow 93.24 participating studentsand the control groupfor a minimum of 93.25 six years from the start of the program. The commissioner shall 93.26 submit a preliminary report to the governor and the chairs of 93.27 the senate and house committees having jurisdiction over 93.28 education and crime prevention by December 15, 2000, regarding 93.29 continuation of the learn and earn graduation achievement 93.30 program for participating schools and expansion of the program 93.31 to additional schools. The commissioner shall submit a final 93.32 report on this initial project by December 15, 2002. 93.33 Sec. 9. Minnesota Statutes 1997 Supplement, section 93.34 268.665, subdivision 2, is amended to read: 93.35 Subd. 2. [MEMBERSHIP.] The governor's workforce 93.36 development council is composed of 33 members appointed by the 94.1 governor. The members may be removed pursuant to section 94.2 15.059. In selecting the representatives of the council, the 94.3 governor shall ensure that 50 percent of the members come from 94.4 nominations provided by local workforce councils. Local 94.5 education representatives shall come from nominations provided 94.6 by local education to employment partnerships. The3233 94.7 members shall represent the following sectors: 94.8 (a) State agencies: the following individuals shall serve 94.9 on the council: 94.10 (1) commissioner of the Minnesota department of economic 94.11 security; 94.12 (2) commissioner of the Minnesota department of children, 94.13 families, and learning; 94.14 (3) commissioner of the Minnesota department of human 94.15 services; and 94.16 (4) commissioner of the Minnesota department of trade and 94.17 economic development. 94.18 (b) Business and industry: six individuals shall represent 94.19 the business and industry sectors of Minnesota. 94.20 (c) Organized labor: six individuals shall represent labor 94.21 organizations of Minnesota. 94.22 (d) Community-based organizations: four individuals shall 94.23 represent community-based organizations of Minnesota. 94.24 Community-based organizations are defined by the Job Training 94.25 Partnership Act as private nonprofit organizations that are 94.26 representative of communities or significant segments of 94.27 communities and that provide job training services, agencies 94.28 serving youth, agencies serving individuals with disabilities, 94.29 agencies serving displaced homemakers, union-related 94.30 organizations, and employer-related nonprofit organizations and 94.31 organizations serving nonreservation Indians and tribal 94.32 governments. 94.33 (e) Education: six individuals shall represent the 94.34 education sector of Minnesota as follows: 94.35 (1) one individual shall represent local public secondary 94.36 education; 95.1 (2) one individual shall have expertise in design and 95.2 implementation of school-based service-learning; 95.3 (3) one individual shall represent post-secondary 95.4 education; 95.5 (4) one individual shall represent secondary/post-secondary 95.6 vocational institutions; 95.7 (5) the chancellor of the board of trustees of the 95.8 Minnesota state colleges and universities; and 95.9 (6) one individual shall have expertise in agricultural 95.10 education. 95.11 (f) Other: two individuals shall represent other 95.12 constituencies including: 95.13 (1) units of local government; and 95.14 (2) applicable state or local programs. 95.15 The speaker and the minority leader of the house of 95.16 representatives shall each appoint a representative to serve as 95.17 an ex officio member of the council. The majority and minority 95.18 leaders of the senate shall each appoint a senator to serve as 95.19 an ex officio member of the council. After January 1, 1997, the 95.20 Minnesota director of the corporation for national service shall 95.21 also serve as an ex officio member. 95.22 (g) Appointment: each member shall be appointed for a term 95.23 of three years from the first day of January or July immediately 95.24 following their appointment. Elected officials shall forfeit 95.25 their appointment if they cease to serve in elected office. 95.26 (h) Members of the council are compensated as provided in 95.27 section 15.059, subdivision 3. 95.28 Sec. 10. Minnesota Statutes 1996, section 268.665, 95.29 subdivision 3, is amended to read: 95.30 Subd. 3. [PURPOSE; DUTIES.] The governor's workforce 95.31 development council shall replace the governor's job training 95.32 council and assume all of its requirements, duties, and 95.33 responsibilities, under the Job Training Partnership Act, United 95.34 States Code, title 29, section 1501, et seq. Additionally, the 95.35 workforce development council shall assume the following duties 95.36 and responsibilities: 96.1 (a) Coordinate the development, implementation, and 96.2 evaluation of the statewide education and employment transitions 96.3 system under section 126B.01. Beginning January 1, 1997, the 96.4 council shall also coordinate the development, implementation, 96.5 and evaluation of the Minnesota youth services programs under 96.6 sections 121.704 to 121.709, and the National and Community 96.7 Services Act of 1993, United States Code, title 42, section 96.8 12501, et seq. 96.9 (b) Review the provision of services and the use of funds 96.10 and resources under applicable federal human resource programs 96.11 and advise the governor on methods of coordinating the provision 96.12 of services and the use of funds and resources consistent with 96.13 the laws and regulations governing the programs. For purposes 96.14 of this section, applicable federal and state human resource 96.15 programs mean the: 96.16 (1) Job Training Partnership Act, United States Code, title 96.17 29, section 1501, et seq.; 96.18 (2) Carl D. Perkins Vocational and Applied Technology 96.19 Education Act, United States Code, title 20, section 2301, et 96.20 seq.; 96.21 (3) National and Community Service Act of 1993, United 96.22 States Code, title 42, section 12501, et seq.; 96.23 (4) Adult Education Act, United States Code, title 20, 96.24 section 1201, et seq.; 96.25 (5) Wagner-Peyser Act, United States Code, title 29, 96.26 section 49; 96.27 (6) Social Security Act, title IV, part F, (JOBS), United 96.28 States Code, title 42, section 681, et seq.; 96.29 (7) Food Stamp Act of 1977, United States Code, title 7, 96.30 section 6(d)(4), Food Stamp Employment and Training Program, 96.31 United States Code, title 7, section 2015(d)(4); 96.32 (8) programs defined in section 268.0111, subdivisions 4 96.33 and 5; and 96.34 (9) School to Work Opportunity Act of 1994, Public Law 96.35 Number 103-239. 96.36 Additional federal and state programs and resources can be 97.1 included within the scope of the council's duties if recommended 97.2 by the governor after consultation with the council. 97.3 (c) Review federal, state, and local education, 97.4 post-secondary, job skills training, and youth employment 97.5 programs, and make recommendations to the governor and the 97.6 legislature for establishing an integrated seamless system for 97.7 providing education, service-learning, and work skills 97.8 development services to learners and workers of all ages. 97.9 (d) Advise the governor on the development and 97.10 implementation of statewide and local performance standards and 97.11 measures relating to applicable federal human resource programs 97.12 and the coordination of performance standards and measures among 97.13 programs. 97.14 (e) Administer grants to local education and employment 97.15 transition partnerships, including implementation grants under97.16section 126B.01, grants for youth apprenticeship programs under97.17section 126B.03, and youth employer grants. Beginning January97.181, 1997, administer youthworks grants under sections 121.704 to97.19121.709; and 97.20 (1) coordinate implementation of the education and 97.21 employment transitions system under section 126B.01; 97.22 (2) promote education and employment transitions programs 97.23 and knowledge and skills of entrepreneurship among employers, 97.24 workers, youth, and educators, and encourage employers to 97.25 provide meaningful work-based learning opportunities; 97.26 (3) evaluate and identify exemplary education and 97.27 employment transitions programs and provide technical assistance 97.28 to local partnerships to replicate the programs throughout the 97.29 state; 97.30 (4) establish a performance-based quality assurance system 97.31 for consistent statewide evaluation of the performance of the 97.32 education and employment transitions system at both the state 97.33 and local level; 97.34 (5) conduct an annual review of each local education and 97.35 employment transitions partnership to ensure it adequately meets 97.36 the quality assurance standards established as part of the state 98.1 quality assurance system; 98.2 (6) develop the methods to assess local partnership 98.3 effectiveness; 98.4 (7) annually publish a report on the findings of the 98.5 evaluations of each local education transitions partnership; 98.6 (8) promote knowledge and skills of entrepreneurship among 98.7 students in kindergarten through grade 12 by sharing information 98.8 about the ways new business development contributes to a strong 98.9 economy. 98.10 (f) Advise the governor on methods to evaluate applicable 98.11 federal human resource programs. 98.12 (g) Sponsor appropriate studies to identify human 98.13 investment needs in Minnesota and recommend to the governor 98.14 goals and methods for meeting those needs. 98.15 (h) Recommend to the governor goals and methods for the 98.16 development and coordination of a human resource system in 98.17 Minnesota. 98.18 (i) Examine federal and state laws, rules, and regulations 98.19 to assess whether they present barriers to achieving the 98.20 development of a coordinated human resource system. 98.21 (j) Recommend to the governor and to the federal government 98.22 changes in state or federal laws, rules, or regulations 98.23 concerning employment and training programs that present 98.24 barriers to achieving the development of a coordinated human 98.25 resource system. 98.26 (k) Recommend to the governor and to the federal government 98.27 waivers of laws and regulations to promote coordinated service 98.28 delivery. 98.29 (l) Sponsor appropriate studies and prepare and recommend 98.30 to the governor a strategic plan which details methods for 98.31 meeting Minnesota's human investment needs and for developing 98.32 and coordinating a state human resource system. 98.33 (m) Develop program guidelines and recommend grant approval 98.34 procedures to the department of children, families, and learning 98.35 for grants under section 126B.01, grants for youth 98.36 apprenticeship programs under section 126B.03, and youth 99.1 employer grants and youthworks grants under sections 121.704 to 99.2 121.709. 99.3 Sec. 11. Laws 1997, First Special Session chapter 4, 99.4 article 2, section 51, subdivision 33, is amended to read: 99.5 Subd. 33. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 99.6 For the learn and earn graduation achievement program according 99.7 to Minnesota Statutes, section 126.79: 99.8 $1,000,000 ..... 1998 99.9 $1,000,000 ..... 1999 99.10 Any balance in the first year does not cancel but is 99.11 available in the second year. 99.12 This appropriation may be used for administrative and other 99.13 start-up costs for applications from nonprofit agencies. 99.14 However, no more than 25 percent of the appropriation may be 99.15 used for this purpose. 99.16 Sec. 12. Laws 1997, First Special Session chapter 4, 99.17 article 9, section 11, is amended to read: 99.18 Sec. 11. [ADDITIONAL TECHNOLOGY REVENUE.] 99.19 (a) For fiscal year 1998 only, the allowance in Minnesota 99.20 Statutes, section 124A.22, subdivision 10, paragraph (a), is 99.21 increased by: 99.22 (1) $24 per pupil unit; or 99.23 (2) the lesser of $25,000 or $80 per pupil unit. 99.24 Revenue received under this section must be used according 99.25 to Minnesota Statutes, section 124A.22, subdivision 11, clauses 99.26 (15), (18), (19), (23), and (24). 99.27 (b) For the purposes of paragraph (a), "pupil unit" means 99.28 fund balance pupil unit as defined in Minnesota Statutes, 99.29 section 124A.26, subdivision 1, excluding pupil units 99.30 attributable to shared time pupils. 99.31 Sec. 13. Laws 1997, First Special Session chapter 4, 99.32 article 3, section 25, subdivision 4, is amended to read: 99.33 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 99.34 GRANTS.] For education and employment transitions program: 99.35 $4,750,000 ..... 1998 99.36 $4,750,000 ..... 1999 100.1 $500,000 each year is for development of MnCEPs, an 100.2 Internet-based education and employment information system. 100.3 These are one-time funds. 100.4 $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 100.5 year 1999 is for a rebate program for qualifying employers who 100.6 employ less than 250 employees, who offer youth internships to 100.7 educators. An employer may apply for a rebate of up to $500 for 100.8 each paid youth internship and each educator internship, and up 100.9 to $3,000 for each paid youth apprenticeship. The commissioner 100.10 shall determine the application and payment process. 100.11 $450,000 each year is for youth apprenticeship program 100.12 grants. 100.13 $225,000 each year is for youth entrepreneurship grants 100.14 under Minnesota Statutes, section 121.72. Of this amount, 100.15 $25,000 each year is for the high school student 100.16 entrepreneurship program in independent school district No. 175, 100.17 Westbrook. This appropriation shall be used for expenses, 100.18 including, but not limited to, salaries, travel, seminars, 100.19 equipment purchases, contractual expenses, and other expenses 100.20 related to the student-run business. 100.21 $125,000 each year is for youth employer grants under Laws 100.22 1995, First Special Session chapter 3, article 4, section 28. 100.23 $150,000 each year is for parent and community awareness 100.24 training. 100.25$825,000$775,000 each year is for the development of 100.26 career assessment benchmarks, lifework portfolios, industry 100.27 skill standards, curriculum development, career academies, and 100.28 career programs for elementary, middle school, and at-risk 100.29 learners. 100.30 $400,000 each year is for state level activities, including 100.31 the governor's workforce council. 100.32 $275,000 each year is for development of occupational 100.33 information. 100.34 $300,000 each year is for a grant to be made available to a 100.35 county government that has established school-to-work projects 100.36 with schools located in a city of the first class. These grants 101.1 must be used to expand the number of at-risk students 101.2 participating in these school-to-work projects. Priority must 101.3 be given to projects that demonstrate collaborationbetween101.4 among private and public employers, collective bargaining 101.5 representatives, school officials, and the county government and 101.6 which prepare at-risk students for long-term employment with 101.7 private sector employers paying a minimum of 150 percent of the 101.8 federal poverty level for a family of four and with the majority 101.9 of their employees in collective bargaining units. 101.10 $250,000 each year is for agricultural school-to-work 101.11 grants. 101.12 $25,000 is for a grant to the Minnesota Historical Society 101.13 for money canceled in fiscal year 1997. 101.14 $50,000 each year is awarded to the Minnesota valley action 101.15 council, the fiscal agent for the south central tri-county 101.16 school-to-work partnership, to serve as a model for the state in 101.17 demonstrating the capability of a multicounty partnership to 101.18 develop both a resource map for sustaining all learners and an 101.19 assessment process for employer, labor, and community 101.20 organizations involved in the school-to-work initiative. The 101.21 partnership shall submit a report to the commissioner and to the 101.22 governor's workforce development council by September 1, 1999, 101.23 that includes the resource map, the results of the assessments, 101.24 and models for multicounty partnerships to replicate these 101.25 activities. 101.26 Any balance remaining in the first year does not cancel but 101.27 is available in the second year. 101.28 Sec. 14. Laws 1997, chapter 157, section 71, is amended to 101.29 read: 101.30 Sec. 71. [SCHOOL BANK PILOT PROJECT.] 101.31 (a) A school bank sponsored by independent school district 101.32 No. 31, Bemidji, or by independent school district No. 508, St. 101.33 Peter, that meets all requirements of paragraph (b) is not 101.34 subject to Minnesota Statutes, section 47.03, subdivision 1, or 101.35 to any other statute or rule that regulates banks, other 101.36 financial institutions, or currency exchanges. 102.1 (b) To qualify under paragraph (a), the school bank must: 102.2 (1) be operated as part of a high school educational 102.3 program and under guidelines adopted by the school board; 102.4 (2) be advised on a regular basis byaone or more 102.5 state-chartered or federally-chartered financialinstitution102.6 institutions, but not owned or operated bythatany financial 102.7 institution; 102.8 (3) be located on school premises and have as customers 102.9 only students enrolled in, or employees of, the school in which 102.10 it is located; and 102.11 (4) have a written commitment from the school board, 102.12 guaranteeing reimbursement of any depositor's funds lost due to 102.13 insolvency of the school bank. 102.14 (c) Funds of a school bank that meets the requirements of 102.15 this section are not school district or other public funds for 102.16 purposes of any state law governing the use or investment of 102.17 school district or other public funds. 102.18 (d) The school district shall annually file with the 102.19 commissioner of commerce a report, prepared by the students and 102.20 teachers involved, summarizing the operation of the school bank. 102.21 (e) This section expires June 30, 2000. The commissioner 102.22 of commerce shall, no later than December 15, 1999, provide a 102.23 written report to the legislature regarding this pilot project 102.24 and any recommended legislation regarding school banks. 102.25 Sec. 15. [LIBRARY FOR THE BLIND; APPROPRIATION.] 102.26 $60,000 is appropriated in fiscal year 1999 from the 102.27 general fund to the department of children, families, and 102.28 learning for the purchase and installation of online catalog 102.29 software for the Minnesota library for the blind and physically 102.30 handicapped. 102.31 Sec. 16. [DEADLINE.] 102.32 The governor shall convene the interagency committee 102.33 required by Minnesota Statutes, section 120.1703, subdivision 4, 102.34 by July 1, 1998. 102.35 Sec. 17. [APPROPRIATION; INTERVENTION DEMONSTRATION 102.36 PROJECTS.] 103.1 $250,000 is appropriated from the general fund in fiscal 103.2 year 1999 to the commissioner of children, families, and 103.3 learning for the purpose of establishing five voluntary 103.4 interagency intervention demonstration projects under Minnesota 103.5 Statutes, section 120.1703, subdivision 5. The commissioner 103.6 shall allocate the grant awards according to the implementation 103.7 needs of the grant recipients. 103.8 Sec. 18. [EFFECTIVE DATE.] 103.9 Sections 11, 13, 14, and 16 are effective the day following 103.10 final enactment. 103.11 Section 12 is effective for revenue for fiscal year 1998. 103.12 ARTICLE 4 103.13 FACILITIES AND ORGANIZATION 103.14 Section 1. Minnesota Statutes 1997 Supplement, section 103.15 121.15, subdivision 6, is amended to read: 103.16 Subd. 6. [REVIEW AND COMMENT.] A school district, a 103.17 special education cooperative, or a cooperative unit of 103.18 government, as defined in section 123.35, subdivision 19b, 103.19 paragraph (d), must not initiate an installment contract for 103.20 purchase or a lease agreement, hold a referendum for bonds, nor 103.21 solicit bids for new construction, expansion, or remodeling of 103.22 an educational facility that requires an expenditure in excess 103.23 of $400,000 per school site prior to review and comment by the 103.24 commissioner. Facility maintenance projects funded with general 103.25 education aid and levy or health and safety revenue are exempt 103.26 from this provision unless the commissioner has issued an 103.27 unfavorable or negative review and comment on a proposal to 103.28 remodel or expand the school site. Facility maintenance 103.29 projects include roof replacement, boiler replacement, wiring 103.30 for technology, and other projects designed to replace and 103.31 upgrade components of the building. A school board shall not 103.32 separate portions of a single project into components to avoid 103.33 the requirements of this subdivision. 103.34 Sec. 2. Minnesota Statutes 1996, section 124.239, as 103.35 amended by Laws 1997, chapter 231, article 1, sections 1 to 3, 103.36 and Laws 1997, First Special Session chapter 5, sections 38 to 104.1 41, is amended to read: 104.2 124.239 [ALTERNATIVE FACILITIESBONDING AND LEVYREVENUE 104.3 PROGRAM.] 104.4 Subdivision 1. [TO QUALIFY.] An independent or special 104.5 school district qualifies to participate in the alternative 104.6 facilitiesbonding and levyrevenue program if the district has: 104.7 (1) more than 66 students per grade; 104.8 (2) over 1,850,000 square feet of space; 104.9 (3) average age of building space is2015 years or older; 104.10 (4) insufficient funds from projected health and safety 104.11 revenue and capital facilities revenue to meet the requirements 104.12 for deferred maintenance, to make accessibility improvements, or 104.13 to make fire, safety, or health repairs; and 104.14 (5) a ten-year facility plan approved by the commissioner 104.15 according to subdivision 2. 104.16 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 104.17 have a ten-year facility plan approved by the commissioner that 104.18 includes an inventory of projects and costs that would be 104.19 eligible for: 104.20 (1) health and safety revenue; 104.21 (2) disabled access levy; and 104.22 (3) deferred capital expenditures and maintenance projects 104.23 necessary to prevent further erosion of facilities. 104.24 (b) The school district must: 104.25 (1) annually update the plan; 104.26 (2) biennially submit a facility maintenance plan; and 104.27 (3) indicate whether the district will issue bonds to 104.28 finance the plan orlevyannually include program revenue under 104.29 the facilities equalization program, under section 124.95, for 104.30 the costs. 104.31 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 104.32 approval of its school board and the commissioner, may issue 104.33 general obligation bonds under this section to finance approved 104.34 facilities plans. Chapter 475, except sections 475.58 and 104.35 475.59, must be complied with.The district may levy under104.36subdivision 5 for the debt service revenue.The authority to 105.1 issue bonds under this section is in addition to any bonding 105.2 authority authorized by this chapter, or other law. The amount 105.3 of bonding authority authorized under this section must be 105.4 disregarded in calculating the bonding or net debt limits of 105.5 this chapter, or any other law other than section 475.53, 105.6 subdivision 4. 105.7 Subd. 4. [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 105.8 district that participates in the alternative facilitiesbonding105.9and levyrevenue program is not eligibleto levy and cannot105.10receive aidfor revenue under sections 124.83 and 124.84 for any 105.11 capital projects funded under this section. A district maylevy105.12and receive aid for health and safetyreceive revenue for 105.13 environmental management costs and health and safety regulatory, 105.14 hazard assessment, record keeping, and maintenance programs as 105.15 defined in section 124.494, subdivision 2, and approved by the 105.16 commissioner. 105.17 Subd. 5. [LEVYREVENUE AUTHORIZED.] A district, after 105.18 local board approval, maylevyreceive revenue for costs related 105.19 to an approved facility plan as follows: 105.20 (a) if the district has indicated to the commissioner that 105.21 bonds will be issued, the district maylevyreceive revenue for 105.22 the principal and interest payments on outstanding bonds issued 105.23 according to subdivision 3 after reduction for any alternative 105.24 facilities aid receivable under subdivision 5a; or 105.25 (b) if the district has indicated to the commissioner that 105.26 the plan will be funded through levy, the district may levy 105.27 according to the schedule approved in the plan. 105.28 Subd. 5a. [ALTERNATIVE FACILITIES AID.] A district's 105.29 alternative facilities aid is the amount equal to the district's 105.30 annual debt service costs, provided that the amount does not 105.31 exceed the amount certified to be levied for those purposes for 105.32 taxes payable in 1997. 105.33 Subd. 5b. [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 105.34 amount not to exceed $17,000,000 is appropriated from the 105.35 general fund to the commissioner of children, families, and 105.36 learning for fiscal year 2000 and each year thereafter for 106.1 payment of alternative facilities aid under subdivision 5a. The 106.2 2000 appropriation includes $1,700,000 for 1999 and $15,300,000 106.3 for 2000. 106.4 (b) The appropriation in paragraph (a) must be reduced by 106.5 the amount of any money specifically appropriated for the same 106.6 purpose in any year from any state fund. 106.7 Subd. 6. [SEPARATE ACCOUNT.] A district must establish a 106.8 separate account under the uniform financial accounting and 106.9 reporting standards (UFARS) for this program. If the district's 106.10levyrevenue exceeds the necessary interest and principal 106.11 payments and noncapital health and safety costs, the district 106.12 must reserve the revenue to replace future bonding authority, 106.13 prepay bonds authorized under this program, or make payments on 106.14 principal and interest. 106.15 Sec. 3. Minnesota Statutes 1996, section 124.755, 106.16 subdivision 1, is amended to read: 106.17 Subdivision 1. [DEFINITIONS.] For the purposes of this 106.18 section, the term "debt obligation" meanseither: (1) a tax or 106.19 aid anticipation certificate of indebtedness; (2) a certificate 106.20 of participation issued under section 124.91, subdivision 7; or 106.21 (3) a general obligation bond. 106.22 Sec. 4. Minnesota Statutes 1996, section 124.83, 106.23 subdivision 8, is amended to read: 106.24 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 106.25 COST.] (a) A district's cost for health, safety, and 106.26 environmental management is limited to the lesser of: 106.27 (1) actual cost to implement their plan; or 106.28 (2) an amount determined by the commissioner, based on 106.29 enrollment, building age, and size. 106.30 (b)Effective July 1, 1993,The department of children, 106.31 families, and learning may contract with regional service 106.32 organizations, private contractors, Minnesota safety council, or 106.33 state agencies to provide management assistance to school 106.34 districts for health and safety capital projects. Management 106.35 assistance is the development of written programs for the 106.36 identification, recognition and control of hazards, and 107.1 prioritization and scheduling of district health and safety 107.2 capital projects. 107.3 (c) Notwithstanding paragraph (b), the department may 107.4 approve revenue, up to the limit defined in paragraph (a) for 107.5 districts having an approved health, safety, and environmental 107.6 management plan that uses district staff to accomplish 107.7 coordination and provided services. 107.8 Sec. 5. Minnesota Statutes 1996, section 124.84, 107.9 subdivision 3, is amended to read: 107.10 Subd. 3. [LEVY AUTHORITYREVENUE.] The district maylevy107.11 be eligible for revenue up to $300,000 under this section, as 107.12 approved by the commissioner. The approved amount may belevied107.13 received over eight or fewer years. 107.14 Sec. 6. Minnesota Statutes 1996, section 124.84, 107.15 subdivision 4, is amended to read: 107.16 Subd. 4. [LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 107.17 Notwithstanding subdivision 3, a district that has combined or 107.18 consolidated maylevyreceive revenue up to 50 percent times 107.19 $300,000 times the number of former districts that operated on 107.20 June 30, 1991, in the area that now makes up the combined or 107.21 consolidated district. The approved amount is reduced by any 107.22 amount levied under subdivision 3 in the consolidated or 107.23 combined district or in the former districts that make up the 107.24 consolidated or combined district. Levy authority under this 107.25 subdivision expires at the same time as levy authority under 107.26 subdivision 3. 107.27 Sec. 7. Minnesota Statutes 1997 Supplement, section 107.28 124.91, subdivision 1, is amended to read: 107.29 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 107.30 district finds it economically advantageous to rent or lease a 107.31 building or land for any instructional purposes or for school 107.32 storage or furniture repair, and it determines that the 107.33 operating capital revenue authorized under section 124A.22, 107.34 subdivision 10, is insufficient for this purpose, it may apply 107.35 to the commissioner for permissionto make an additional capital107.36expenditure levyto increase its equalized facilities revenue 108.1 under section 124.95, subdivision 4, for this purpose. An 108.2 application for permission tolevy under this subdivision108.3 increase the equalized facilities revenue must contain financial 108.4 justification for the proposedlevyincrease, the terms and 108.5 conditions of the proposed lease, and a description of the space 108.6 to be leased and its proposed use. 108.7 (b) The criteria for approval of applications to levy under 108.8 this subdivision must include: the reasonableness of the price, 108.9 the appropriateness of the space to the proposed activity, the 108.10 feasibility of transporting pupils to the leased building or 108.11 land, conformity of the lease to the laws and rules of the state 108.12 of Minnesota, and the appropriateness of the proposed lease to 108.13 the space needs and the financial condition of the district. 108.14 The commissioner must not authorizea levyrevenue under this 108.15 subdivision in an amount greater than the cost to the district 108.16 of renting or leasing a building or land for approved purposes. 108.17 The proceeds of this levy must not be used for custodial or 108.18 other maintenance services. A district may notlevyreceive 108.19 revenue under this subdivision for the purpose of leasing or 108.20 renting a district-owned building to itself. 108.21 (c) For agreements finalized after July 1, 1997, a district 108.22 may notlevyreceive revenue under this subdivision for the 108.23 purpose of leasing: (1) a newly constructed building used 108.24 primarily for regular kindergarten, elementary, or secondary 108.25 instruction; or (2) a newly constructed building addition or 108.26 additions used primarily for regular kindergarten, elementary, 108.27 or secondary instruction that contains more than 20 percent of 108.28 the square footage of the previously existing building. 108.29 (d) The totallevyrevenue under this subdivision for a 108.30 district for any year must not exceed $100 times the actual 108.31 pupil units for the fiscal year to which the levy is 108.32 attributable. 108.33 Sec. 8. Minnesota Statutes 1996, section 124.91, 108.34 subdivision 2, is amended to read: 108.35 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 108.36 A district mayannually levyincrease the amount of its 109.1 equalized facilities revenue needed to make payments required by 109.2 a lease purchase agreement, installment purchase agreement, or 109.3 other deferred payment agreement authorized by Minnesota 109.4 Statutes 1989 Supplement, section 465.71, if: 109.5 (1) the agreement was approved by the commissioner before 109.6 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 109.7 section 275.125, subdivision 11d; or 109.8 (2) the district levied in 1989 for the payments. 109.9 Sec. 9. Minnesota Statutes 1996, section 124.91, 109.10 subdivision 4, is amended to read: 109.11 Subd. 4. [COOPERATING DISTRICTS.] A district that has an 109.12 agreement according to section 122.535 or 122.541 maylevy109.13 increase its equalized facilities revenue under section 124.95, 109.14 subdivision 4, for the repair costs, as approved by the 109.15 department of children, families, and learning, of a building 109.16 located in another district that is a party to the agreement. 109.17 Sec. 10. Minnesota Statutes 1997 Supplement, section 109.18 124.91, subdivision 5, is amended to read: 109.19 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 109.20 with its central administrative office located within economic 109.21 development region one, two, three, four, five, six, seven, 109.22 eight, nine, and ten may apply to the commissioner of children, 109.23 families, and learning for ITV revenue up to the greater of .5 109.24 percent of the adjusted net tax capacity of the district or 109.25 $25,000. Eligible interactive television expenditures include 109.26 the construction, maintenance, and lease costs of an interactive 109.27 television system for instructional purposes. An eligible 109.28 school district that has completed the construction of its 109.29 interactive television system may also purchase computer 109.30 hardware and software used primarily for instructional purposes 109.31 and access to the Internet provided that its total expenditures 109.32 for interactive television maintenance and lease costs and for 109.33 computer hardware and software under this subdivision do not 109.34 exceed its interactive television revenue for fiscal year 1998. 109.35 The approval by the commissioner of children, families, and 109.36 learning and the application procedures set forth in subdivision 110.1 1 shall apply to the revenue in this subdivision. In granting 110.2 the approval, the commissioner must consider whether the 110.3 district is maximizing efficiency through peak use and off-peak 110.4 use pricing structures. 110.5 (b) To obtain ITV revenue, a district maylevy an amount110.6not to exceed the district's ITV revenue times the lesser of one110.7or the ratio of:110.8(1) the quotient derived by dividing the adjusted net tax110.9capacity of the district for the year before the year the levy110.10is certified by the actual pupil units in the district for the110.11year to which the levy is attributable; to110.12(2) 100 percent of the equalizing factor as defined in110.13section 124A.02, subdivision 8, for the year to which the levy110.14is attributableincrease its equalized facilities revenue under 110.15 section 124.95, subdivision 4. 110.16 (c)A district's ITV aid is the difference between its ITV110.17revenue and the ITV levy.110.18(d)The revenue in the first year after reorganization for 110.19 a district that has reorganized under section 122.22, 122.23, or 110.20 122.241 to 122.247 shall be the greater of: 110.21 (1) the revenue computed for the reorganized district under 110.22 paragraph (a), or 110.23 (2)(i) for two districts that reorganized, 75 percent of 110.24 the revenue computed as if the districts involved in the 110.25 reorganization were separate, or 110.26 (ii) for three or more districts that reorganized, 50 110.27 percent of the revenue computed as if the districts involved in 110.28 the reorganization were separate. 110.29(e)(d) The revenue in paragraph(d)(c) is increased by 110.30 the difference between the initial revenue and ITV lease costs 110.31 for leases that had been entered into by the preexisting 110.32 districts on the effective date of the consolidation or 110.33 combination and with a term not exceeding ten years. This 110.34 increased revenue is only available for the remaining term of 110.35 the lease. However, in no case shall the revenue exceed the 110.36 amount available had the preexisting districts received revenue 111.1 separately. 111.2(f)(e) Effective for fiscal year 2000, the revenue under 111.3 this section shall be 75 percent of the amount determined in 111.4 paragraph (a); for fiscal year 2001, 50 percent of the amount in 111.5 paragraph (a); and for fiscal year 2002, 25 percent of the 111.6 amount in paragraph (a). 111.7(g)(f) This section expires effective for revenue for 111.8 fiscal year 2003, or when leases in existence on the effective 111.9 date of Laws 1997, First Special Session chapter 4, expire. 111.10 Sec. 11. Minnesota Statutes 1996, section 124.91, 111.11 subdivision 6, is amended to read: 111.12 Subd. 6. [ENERGY CONSERVATION.] For loans existing on 111.13 January 1, 1998, the school district may annuallylevyinclude 111.14 as revenue under section 124.95, without the approval of a 111.15 majority of the voters in the district, an amount sufficient to 111.16 repay the annual principal and interest of the loan made 111.17 pursuant to sections 216C.37 and 298.292 to 298.298. For energy 111.18 loans executed after January 1, 1998, school districts must 111.19 annually transfer from the general fund to the debt redemption 111.20 fund the amount sufficient to pay interest and principal on the 111.21 bonds. 111.22 Sec. 12. Minnesota Statutes 1997 Supplement, section 111.23 124.91, subdivision 7, as amended by Laws 1997, Third Special 111.24 Session chapter 3, section 27, is amended to read: 111.25 Subd. 7. [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 111.26 application to, and approval by, the commissioner in accordance 111.27 with the procedures and limits in subdivision 1, paragraphs (a) 111.28 and (b), a district, as defined in this subdivision, may: 111.29 (1) purchase real or personal property under an installment 111.30 contract or may lease real or personal property with an option 111.31 to purchase under a lease purchase agreement, by which 111.32 installment contract or lease purchase agreement title is kept 111.33 by the seller or vendor or assigned to a third party as security 111.34 for the purchase price, including interest, if any; and 111.35 (2) annuallylevyincrease its equalized facilities revenue 111.36 under section 124.95, subdivision 4, by the amounts necessary to 112.1 pay the district's obligations under the installment contract or 112.2 lease purchase agreement. 112.3 (b) The obligation created by the installment contract or 112.4 the lease purchase agreement must not be included in the 112.5 calculation of net debt for purposes of section 475.53, and does 112.6 not constitute debt under other law. An election is not 112.7 required in connection with the execution of the installment 112.8 contract or the lease purchase agreement. 112.9 (c) The proceeds of thelevyequalized facilities revenue 112.10 increase authorized by this subdivision must not be used to 112.11 acquire a facility to be primarily used for athletic or school 112.12 administration purposes. 112.13 (d) For the purposes of this subdivision, "district" means: 112.14 (1) a school district required to have a comprehensive plan 112.15 for the elimination of segregation whose plan has been 112.16 determined by the commissioner to be in compliance with the 112.17 state board of education rules relating to equality of 112.18 educational opportunity and school desegregation; or 112.19 (2) a school district that participates in a joint program 112.20 for interdistrict desegregation with a district defined in 112.21 clause (1) if the facility acquired under this subdivision is to 112.22 be primarily used for the joint program. 112.23 (e) Notwithstanding subdivision 1, the prohibition against 112.24a levy bya districtto leasereceiving revenue for the purpose 112.25 of leasing orrentrenting a district-owned building to itself 112.26 does not apply toleviesrevenues otherwise authorized by this 112.27 subdivision. 112.28 (f) For the purposes of this subdivision, any references in 112.29 subdivision 1 to building or land shall include personal 112.30 property. 112.31 Sec. 13. Minnesota Statutes 1996, section 124.95, as 112.32 amended by Laws 1997, First Special Session chapter 4, article 112.33 4, section 20, is amended to read: 112.34 124.95 [DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 112.35 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 112.36 section, the eligibledebt servicefacilities revenue of a 113.1 district is defined as follows: 113.2 (1) the amount needed to produce between five and six 113.3 percent in excess of the amount needed to meet when due the 113.4 principal and interest payments on the obligations of the 113.5 district for eligible projects according to subdivision 2, 113.6 including the amounts necessary for repayment of energy loans 113.7 according to section216C.37 or sections 298.292 to 298.298113.8 124.91, subdivision 6, debt service loans and capital loans, 113.9 lease purchase payments under section 124.91, subdivisions 2 and 113.10 3, alternative facilitiesleviesrevenue under section 124.239, 113.11 subdivision 5, historic building revenue, under section 124.825, 113.12 subdivision 2; health and safety revenue, under section 124.83, 113.13 subdivision 3; handicapped access and fire safety revenue, under 113.14 section 124.84, subdivision 3; building lease revenue, under 113.15 section 124.91, subdivision 1; cooperative building repair 113.16 revenue, under section 124.91, subdivision 4; and interactive 113.17 television revenue, under section 124.91, subdivision 5, minus 113.18 (2) the amount of debt service excess levy reduction for 113.19 that school year calculated according to the procedure 113.20 established by the commissioner. 113.21 (b) The obligations in this paragraph are excluded from 113.22 eligibledebt servicefacilities revenue: 113.23 (1) obligations under section 124.2445; 113.24 (2) the part of debt service principal and interest paid 113.25 from the taconite environmental protection fund or northeast 113.26 Minnesota economic protection trust; 113.27 (3) obligations issued under Laws 1991, chapter 265, 113.28 article 5, section 18, as amended by Laws 1992, chapter 499, 113.29 article 5, section 24; and 113.30 (4) obligations under section 124.2455. 113.31 (c) For purposes of this section, if a preexisting school 113.32 district reorganized under section 122.22, 122.23, or 122.241 to 113.33 122.248 is solely responsible for retirement of the preexisting 113.34 district's bonded indebtedness, capital loans or debt service 113.35 loans,debt servicefacilities equalization aid must be computed 113.36 separately for each of the preexisting school districts. 114.1 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 114.2 district'sdebt service levyfacilities revenue qualify fordebt114.3servicefacilities equalization: 114.4 (1) debt service for repayment of principal and interest on 114.5 bonds issued before July 2, 1992; 114.6 (2) debt service for bonds refinanced after July 1, 1992, 114.7 if the bond schedule has been approved by the commissioner and, 114.8 if necessary, adjusted to reflect a 20-year maturity schedule; 114.9and114.10 (3) debt service for bonds issued after July 1, 1992, for 114.11 construction projects that have received a positive review and 114.12 comment according to section 121.15, if the commissioner has 114.13 determined that the district has met the criteria under section 114.14 124.431, subdivision 2, and if the bond schedule has been 114.15 approved by the commissioner and, if necessary, adjusted to 114.16 reflect a 20-year maturity schedule; 114.17 (4) alternative facilities revenue, according to section 114.18 124.239, subdivision 5; 114.19 (5) historic building revenue, according to section 114.20 124.825, subdivision 2; 114.21 (6) health and safety revenue, according to section 124.83, 114.22 subdivision 3; 114.23 (7) handicapped access and fire safety revenue, according 114.24 to section 124.84, subdivision 3; 114.25 (8) building lease revenue, according to section 124.91, 114.26 subdivision 1, excluding revenue for leases for land or 114.27 facilities for athletic or other extracurricular activities; 114.28 (9) interactive television revenue, according to section 114.29 124.91, subdivision 5; and 114.30 (10) cooperative building repair revenue, according to 114.31 section 124.91, subdivision 4. 114.32 (b) The criterion in section 124.431, subdivision 2, 114.33 paragraph (a), clause (2), shall be considered to have been met 114.34 if the district in the fiscal year in which the bonds are 114.35 authorized at an election conducted under chapter 475: 114.36 (i) if grades 9 through 12 are to be served by the 115.1 facility, and an average of at least 66 pupils per grade in 115.2 these grades are served; or 115.3 (ii) is eligible for elementary or secondary sparsity 115.4 revenue. 115.5 (c) The criterion in section 124.431, subdivision 2, 115.6 paragraph (a), clause (2), shall also be considered to have been 115.7 met if the construction project under review serves students in 115.8 kindergarten to grade 8. Only the debt service levy for that 115.9 portion of the facility serving students in prekindergarten to 115.10 grade 8, as determined by the commissioner, shall be eligible 115.11 for debt service equalization under this paragraph. 115.12 (d) The criterion described in section 124.431, subdivision 115.13 2, paragraph (a), clause (9), does not apply to bonds authorized 115.14 by elections held before July 1, 1992. 115.15 (e) For the purpose of this subdivision the department 115.16 shall determine the eligibility for sparsity at the location of 115.17 the new facility, or the site of the new facility closest to the 115.18 nearest operating school if there is more than one new facility. 115.19 (f) Notwithstanding paragraphs (a) to (e), debt service for 115.20 repayment of principal and interest on bonds issued after July 115.21 1, 1997, does not qualify fordebt servicefacilities 115.22 equalization aid unless the primary purpose of the facility is 115.23 to serve students in kindergarten through grade 12. 115.24 Subd. 2a. [NOTIFICATION.] A district eligible fordebt115.25servicefacilities equalization revenue under subdivision 2 must 115.26 notify the commissioner of the amount of its intendeddebt115.27servicefacilities equalization revenue calculated under 115.28 subdivision 1 for all bonds sold prior to the notification by 115.29 July 1 of the calendar year the levy is certified. 115.30 Subd. 3. [DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 115.31 (a) For fiscal years 1995 and later, thedebt servicefacilities 115.32 equalization revenue of a district equals the eligibledebt115.33servicefacilities equalization revenue minus the amount raised 115.34 by a levy oftennine percent times the adjusted net tax 115.35 capacity of the district. 115.36(b) For fiscal year 1993, debt service equalization revenue116.1equals one-third of the amount calculated in paragraph (a).116.2(c) For fiscal year 1994, debt service equalization revenue116.3equals two-thirds of the amount calculated in paragraph (a).116.4 Subd. 4. [EQUALIZEDDEBT SERVICEFACILITIES LEVY.] To 116.5 obtaindebt servicefacilities equalization revenue, a district 116.6 must levy an amount not to exceed the district'sdebt service116.7 facilities equalization revenue times the lesser of one or the 116.8 ratio of: 116.9 (1) the quotient derived by dividing the adjusted net tax 116.10 capacity of the district for the year before the year the levy 116.11 is certified by the actual pupil units in the district for the 116.12 school year ending in the year prior to the year the levy is 116.13 certified; to 116.14 (2) $4,707.50. 116.15 Subd. 5. [DEBT SERVICEFACILITIES EQUALIZATION AID.] A 116.16 district'sdebt servicefacilities equalization aid is the 116.17 difference between thedebt servicefacilities equalization 116.18 revenue and the equalizeddebt servicefacilities levy. If the 116.19 amount ofdebt servicefacilities equalization aid actually 116.20 appropriated for the fiscal year in which this calculation is 116.21 made is insufficient to fully funddebt servicefacilities 116.22 equalization aid, the commissioner shall prorate the amount of 116.23 aid across all eligible districts. 116.24 Subd. 6. [DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 116.25 SCHEDULE.]Debt serviceFacilities equalization aid must be paid 116.26as follows: 30 percent before September 15, 30 percent before116.27December 15, 25 percent before March 15, and a final payment of116.2815 percent by July 15 of the subsequent fiscal yearaccording to 116.29 section 124.195, subdivision 7. 116.30 Subd. 7. [DEBT SERVICE PRIORITY.] Of the aid paid under 116.31 this section, the state must first allocate the amount 116.32 attributable to obligations under chapter 475. Remaining aid 116.33 may be used for other purposes of this section. 116.34 Subd. 8. [PRORATION.] In the event that the alternative 116.35 facilities aid available for any year is prorated, a district 116.36 having its aid prorated may levy an additional amount equal to 117.1 the amount not paid by the state due to proration. 117.2 Sec. 14. Minnesota Statutes 1997 Supplement, section 117.3 124.961, is amended to read: 117.4 124.961 [DEBT SERVICEFACILITIES APPROPRIATION.] 117.5 (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 117.6 year 1999, and $38,390,000 in fiscal year 2000 and each year 117.7 thereafter is appropriated from the general fund to the 117.8 commissioner of children, families, and learning for payment 117.9 ofdebt servicefacilities equalization aid under section 117.10 124.95. The 2000 appropriation includes $3,842,000 for 1999 and 117.11 $34,548,000 for 2000. 117.12 (b) The appropriations in paragraph (a) must be reduced by 117.13 the amount of any money specifically appropriated for the same 117.14 purpose in any year from any state fund. 117.15 Sec. 15. Minnesota Statutes 1997 Supplement, section 117.16 124A.22, subdivision 11, is amended to read: 117.17 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 117.18 operating capital revenue may be used only for the following 117.19 purposes: 117.20 (1) to acquire land for school purposes; 117.21 (2) to acquire or construct buildings for school purposes,117.22up to $400,000; 117.23 (3) to rent or lease buildings, including the costs of 117.24 building repair or improvement that are part of a lease 117.25 agreement; 117.26 (4) to improve and repair school sites and buildings, and 117.27 equip or reequip school buildings with permanent attached 117.28 fixtures; 117.29 (5) for a surplus school building that is used 117.30 substantially for a public nonschool purpose; 117.31 (6) to eliminate barriers or increase access to school 117.32 buildings by individuals with a disability; 117.33 (7) to bring school buildings into compliance with the 117.34 uniform fire code adopted according to chapter 299F; 117.35 (8) to remove asbestos from school buildings, encapsulate 117.36 asbestos, or make asbestos-related repairs; 118.1 (9) to clean up and dispose of polychlorinated biphenyls 118.2 found in school buildings; 118.3 (10) to clean up, remove, dispose of, and make repairs 118.4 related to storing heating fuel or transportation fuels such as 118.5 alcohol, gasoline, fuel oil, and special fuel, as defined in 118.6 section 296.01; 118.7 (11) for energy audits for school buildings and to modify 118.8 buildings if the audit indicates the cost of the modification 118.9 can be recovered within ten years; 118.10 (12) to improve buildings that are leased according to 118.11 section 123.36, subdivision 10; 118.12 (13) to pay special assessments levied against school 118.13 property but not to pay assessments for service charges; 118.14 (14) to pay principal and interest on state loans for 118.15 energy conservation according to section 216C.37 or loans made 118.16 under the Northeast Minnesota Economic Protection Trust Fund Act 118.17 according to sections 298.292 to 298.298; 118.18 (15) to purchase or lease interactive telecommunications 118.19 equipment; 118.20 (16) by school board resolution, to transfer money into the 118.21 debt redemption fund to: (i) pay the amounts needed to meet, 118.22 when due, principal and interest payments on certain obligations 118.23 issued according to chapter 475; or (ii) pay principal and 118.24 interest on debt service loans or capital loans according to 118.25 section 124.44; 118.26 (17) to pay capital expenditure equipment-related 118.27 assessments of any entity formed under a cooperative agreement 118.28 between two or more districts; 118.29 (18) to purchase or lease computers and related materials, 118.30 copying machines, telecommunications equipment, and other 118.31 noninstructional equipment; 118.32 (19) to purchase or lease assistive technology or equipment 118.33 for instructional programs; 118.34 (20) to purchase textbooks; 118.35 (21) to purchase new and replacement library books; 118.36 (22) to purchase vehicles; 119.1 (23) to purchase or lease telecommunications equipment, 119.2 computers, and related equipment for integrated information 119.3 management systems for: 119.4 (i) managing and reporting learner outcome information for 119.5 all students under a results-oriented graduation rule; 119.6 (ii) managing student assessment, services, and achievement 119.7 information required for students with individual education 119.8 plans; and 119.9 (iii) other classroom information management needs; and 119.10 (24) to pay personnel costs directly related to the 119.11 acquisition, operation, and maintenance of telecommunications 119.12 systems, computers, related equipment, and network and 119.13 applications software. 119.14 Sec. 16. Laws 1997, First Special Session chapter 4, 119.15 article 4, section 33, is amended to read: 119.16 Sec. 33. [1996-1997 AND 1997-1998 AVERAGE DAILY 119.17 MEMBERSHIP.] 119.18 Notwithstanding Minnesota Statutes, section 124.17, the 119.19 1996-1997 and the 1997-1998 average daily membership for a 119.20 school building closed due to flooding for part of the school 119.21 year and reopened before the end of the school year shall be the 119.22 greater of the amount that would have been computed if the 119.23 school building had not reopened or the amount computed using 119.24 actual data for the entire school year. 119.25 Sec. 17. Laws 1997, First Special Session chapter 4, 119.26 article 4, section 34, is amended to read: 119.27 Sec. 34. [FISCALYEARYEARS 1998 AND 1999 DECLINING PUPIL 119.28 UNIT AID.] 119.29 For fiscalyearyears 1998 and 1999 only, a school district 119.30 with one or more school buildings closed during the 1996-1997 119.31 school year due to flooding is eligible for declining pupil unit 119.32 aid equal to the greater of zero or the product of the general 119.33 education formula allowance for fiscal year 1998 times the 119.34 difference between the district's actual pupil units for the 119.35 1996-1997 school year and the district's actual pupil units for 119.36 the 1997-1998 school year. 120.1 Sec. 18. Laws 1997, First Special Session chapter 4, 120.2 article 4, section 35, subdivision 9, is amended to read: 120.3 Subd. 9. [FLOOD LOSSES.] For grants and loans to 120.4 independent school district Nos. 2854, Ada-Borup; 2176, 120.5 Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 120.6 and other districts affected by the 1997 floods for expenses 120.7 associated with the floods not covered by insurance or state or 120.8 federal disaster relief: 120.9 $4,700,000 ..... 1998 120.10 The commissioner shall award grants and loans to school 120.11 districts to cover expenses associated with the 1997 floods. 120.12 The grants or loans may be for capital losses or for 120.13 extraordinary operating expenses resulting from the floods. 120.14 School districts shall repay any loan or grant amounts to the 120.15 department if those amounts are otherwise funded from other 120.16 sources. The commissioner shall establish the terms and 120.17 conditions of any loans and may request any necessary 120.18 information from school districts before awarding a grant or 120.19 loan. This appropriation shall also be used to fund aid under 120.20 sections 33 and 34. 120.21 This appropriation is available until June 30, 1999. 120.22 Sec. 19. [PHASE-OUT OF DOWN PAYMENT PROGRAM.] 120.23 Districts that have received authority to levy under 120.24 Minnesota Statutes, section 124.82, prior to January 1, 1998, 120.25 may continue to include the amount as revenue under section 120.26 124.95 for the number of years for which the authority was 120.27 originally provided. No other district may qualify under that 120.28 section. The revenue must be maintained in a separate account 120.29 and may only be used for the purpose specified in the ballot. 120.30 Sec. 20. [JOINT FACILITY.] 120.31 Notwithstanding Minnesota Statutes, section 471.19, 120.32 independent school district No. 277, Westonka, may expend bond 120.33 funds for building and remodeling a facility to be operated and 120.34 maintained under a joint-powers agreement with other 120.35 governmental entities for joint use by the school district and 120.36 local community agencies. The school district is not eligible 121.1 for debt service equalization on the bonds associated with the 121.2 joint facility. 121.3 Sec. 21. [USE OF BOND PROCEEDS.] 121.4 Notwithstanding Minnesota Statutes, section 475.58, 121.5 subdivision 4, independent school district No. 742, St. Cloud, 121.6 upon passage of a written resolution specifying the amount and 121.7 purpose of the expenditure, may expend up to $800,000 from its 121.8 building construction fund on a community education site. 121.9 Sec. 22. [BONDING AUTHORIZATION.] 121.10 To provide funds for the acquisition or betterment of 121.11 school facilities, independent school district No. 625, St. 121.12 Paul, may by two-thirds majority vote of all the members of the 121.13 board of directors issue general obligation bonds in one or more 121.14 series in calendar years 1998 to 2002, both inclusive, as 121.15 provided in this section. The aggregate principal amount of any 121.16 bonds issued under this section for each calendar year must not 121.17 exceed $15,000,000. Issuance of the bonds is not subject to 121.18 Minnesota Statutes, section 475.58 or 475.59. The bonds must 121.19 otherwise be issued as provided in Minnesota Statutes, chapter 121.20 475. The authority to issue bonds under this section is in 121.21 addition to any bonding authority authorized by Minnesota 121.22 Statutes, chapter 124, or other law. The amount of bonding 121.23 authority authorized under this section must be disregarded in 121.24 calculating the bonding limit of Minnesota Statutes, chapter 121.25 124, or any other law other than Minnesota Statutes, section 121.26 475.53, subdivision 4. 121.27 Sec. 23. [TAX LEVY FOR DEBT SERVICE.] 121.28 To pay the principal of and interest on bonds issued under 121.29 section 22, independent school district No. 625, St. Paul, must 121.30 levy a tax annually in an amount sufficient under Minnesota 121.31 Statutes, section 475.61, subdivisions 1 and 3, to pay the 121.32 principal of and interest on the bonds. The tax authorized 121.33 under this section is in addition to the taxes authorized to be 121.34 levied under Minnesota Statutes, chapter 124A or 275, or other 121.35 law. 121.36 Sec. 24. [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 122.1 Notwithstanding Minnesota Statutes, section 124.83, 122.2 subdivision 6, independent school district No. 621, Mounds View, 122.3 is authorized to use up to $300,000 of its health and safety 122.4 revenue to replace portable classrooms over 20 years old with 122.5 new construction of classrooms. 122.6 Sec. 25. [PREVAILING WAGE; APPROPRIATIONS.] 122.7 $1,000,000 is appropriated in fiscal year 1998 from the 122.8 general fund to the department of children, families, and 122.9 learning for grants to school districts for the reimbursement of 122.10 additional construction expenditures incurred as a result of the 122.11 districts complying with Minnesota Statutes, section 121.15, 122.12 subdivision 1a. The grants must be awarded to the following 122.13 districts: 122.14 (1) independent school district No. 23, Frazee-Vergas; 122.15 (2) independent school district No. 62, Ortonville; 122.16 (3) independent school district No. 242, Alden; 122.17 (4) independent school district No. 390, Lake of the Woods; 122.18 (5) independent school district No. 392, Le Center; 122.19 (6) independent school district No. 466, Dassel-Cokato; 122.20 (7) independent school district No. 534, Stewartville; 122.21 (8) independent school district No. 542, Battle Lake; 122.22 (9) independent school district No. 659, Northfield; 122.23 (10) independent school district No. 727, Big Lake; 122.24 (11) independent school district No. 882, Monticello; 122.25 (12) independent school district No. 2135, Maple River; 122.26 (13) independent school district No. 2172, 122.27 Kenyon-Wanamingo; and 122.28 (14) independent school district No. 2184, Luverne. 122.29 Sec. 26. [APPROPRIATION.] 122.30 Subdivision 1. [COMMISSIONER OF CHILDREN, FAMILIES, AND 122.31 LEARNING.] The following sum is appropriated from the general 122.32 fund to the commissioner of children, families, and learning in 122.33 the fiscal year designated. 122.34 Subd. 2. [UNFUNDED FLOOD-RELATED COSTS.] For a 122.35 disbursement grant for costs related to flooding in 1997 not 122.36 covered by federal disaster relief, state match, or insurance 123.1 proceeds: 123.2 $10,075,000 ..... 1998 123.3 Of this amount, $1,400,000 is for special school district No. 1, 123.4 Minneapolis, for Edison high school; $1,250,000 is for 123.5 independent school district No. 2854, Ada-Borup; and $7,425,000 123.6 is for independent school district No. 595, East Grand Forks. 123.7 Part of the appropriation to independent school district No. 123.8 595, East Grand Forks, may be used to convert the Valley 123.9 elementary school into a facility for community, early 123.10 childhood, and senior programs. 123.11 The commissioner shall determine a schedule for payments to 123.12 the school districts. 123.13 This appropriation is available until June 30, 1999. 123.14 Subd. 3. [MONTICELLO.] For a grant to independent school 123.15 district No. 882, Monticello, for losses related to summer 123.16 storms in 1997: 123.17 $100,000 ..... 1998 123.18 This appropriation is available until June 30, 1999. 123.19 Sec. 27. [REPEALER.] 123.20 (a) Minnesota Statutes 1996, sections 124.491; 124.492; 123.21 124.493; 124.494; 124.4945; 124.4946; 124.495; 124.82; 124.83, 123.22 subdivisions 4, 5, and 7; 124C.55; 124C.56; 124C.57; 124C.60, 123.23 subdivision 2; 124C.71; 124C.72; and 124C.73, are repealed. 123.24 (b) Minnesota Statutes 1997 Supplement, sections 124.825, 123.25 subdivisions 3 and 4; and 124C.60, subdivisions 1 and 3, are 123.26 repealed. 123.27 Sec. 28. [EFFECTIVE DATE; LOCAL APPROVAL.] 123.28 (a) Sections 21, 25, and 26 are effective the day following 123.29 final enactment. 123.30 (b) Sections 22 and 23 are effective the day after the 123.31 governing body of independent school district No. 625, St. Paul, 123.32 complies with Minnesota Statutes, section 645.021, subdivision 3. 123.33 ARTICLE 5 123.34 ACADEMIC EXCELLENCE 123.35 Section 1. Minnesota Statutes 1997 Supplement, section 123.36 120.064, subdivision 3, is amended to read: 124.1 Subd. 3. [SPONSOR.] A school board, intermediate school 124.2 district school board, private college, community college, state 124.3 university, technical college, or the University of Minnesota 124.4 may sponsor one or more charter schools. 124.5 Sec. 2. Minnesota Statutes 1996, section 120.064, 124.6 subdivision 9, is amended to read: 124.7 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 124.8 limit admission to: 124.9 (1) pupils within an age group or grade level; 124.10 (2) people who are eligible to participate in the 124.11 graduation incentives program under section 126.22; or 124.12 (3) residents of a specific geographic area where the 124.13 percentage of the population of non-Caucasian people of that 124.14 area is greater than the percentage of the non-Caucasian 124.15 population in the congressional district in which the geographic 124.16 area is located, and as long as the school reflects the racial 124.17 and ethnic diversity of the specific area. 124.18 A charter school's enrollment of students eligible for free 124.19 and reduced price meals must equal, at a minimum, the statewide 124.20 average enrollment of students eligible for free and reduced 124.21 price meals. The commissioner shall develop guidelines to 124.22 implement this provision. 124.23 A charter school shall enroll an eligible pupil who submits 124.24 a timely application, unless the number of applications exceeds 124.25 the capacity of a program, class, grade level, or building. In 124.26 this case, pupils shall be accepted by lot. 124.27 A charter school may not limit admission to pupils on the 124.28 basis of intellectual ability, measures of achievement or 124.29 aptitude, or athletic ability. 124.30 Sec. 3. Minnesota Statutes 1996, section 121.1115, is 124.31 amended by adding a subdivision to read: 124.32 Subd. 1b. [EDUCATIONAL ACCOUNTABILITY.] (a) The 124.33 independent office of educational accountability, as authorized 124.34 by Laws 1997, First Special Session chapter 4, article 5, 124.35 section 28, subdivision 2, is established. The office shall 124.36 report to the education committees of the legislature and the 125.1 commissioner of children, families, and learning, at least on a 125.2 biennial basis, on the degree to which the statewide educational 125.3 accountability and reporting system includes a comprehensive 125.4 assessment framework that measures school accountability for 125.5 students achieving the goals described in the state's 125.6 results-oriented graduation rule. The office shall consider 125.7 whether the statewide system of educational accountability 125.8 utilizes multiple indicators to provide valid and reliable 125.9 comparative and contextual data on students, schools, districts, 125.10 and the state, and if not, recommend ways to improve the 125.11 accountability reporting system. 125.12 (b) When the office reviews the statewide educational 125.13 accountability and reporting system, it shall also consider: 125.14 (1) the objectivity and neutrality of the state's 125.15 educational accountability system; and 125.16 (2) the impact of a testing program on school curriculum 125.17 and student learning. 125.18 Sec. 4. [123.3517] [STUDENT ACHIEVEMENT LEVELS.] 125.19 Subdivision 1. [STATE EXPECTATIONS; PLAN.] (a) Each school 125.20 year, a school board must determine if the student achievement 125.21 levels in any school in its district fails to meet state 125.22 expectations. If a school's student achievement levels fail to 125.23 meet state expectations for two out of three consecutive school 125.24 years, beginning with the 1998-1999 school year, the board must 125.25 work with the school to adopt a plan to raise student 125.26 achievement levels to state expectations. State expectations 125.27 will be determined by the legislature based on the 125.28 recommendation of the commissioner of children, families, and 125.29 learning in collaboration with the office of educational 125.30 accountability. 125.31 (b) At the request of a board, the department must assist 125.32 the board and school in developing a plan to improve student 125.33 achievement. 125.34 Subd. 2. [NOTICE.] (a) The board must, within 45 days 125.35 after the board declares that a school's student achievement 125.36 levels fail to meet state expectations under subdivision 1, 126.1 paragraph (a), give notice of the failure to parents and 126.2 guardians of students attending the school. The notice must 126.3 include: 126.4 (1) the state expectations that student achievement levels 126.5 failed to meet; 126.6 (2) a plan, if any, proposed or adopted under subdivision 126.7 1; and 126.8 (3) alternative enrollment options for the students and for 126.9 each option, school expectations for parent involvement as it 126.10 relates to student achievement. 126.11 (b) Each school year the board continues to declare that a 126.12 school's student achievement levels fail to meet state 126.13 expectations, the board must give notice to parents and 126.14 guardians of students of the continuing status of the school. 126.15 Sec. 5. Minnesota Statutes 1996, section 124A.29, 126.16 subdivision 1, is amended to read: 126.17 Subdivision 1. [STAFF DEVELOPMENTAND PARENTAL INVOLVEMENT126.18 REVENUE.] A district isencouragedrequired to reserve at least 126.19 three percent for fiscal year 1999, four percent for fiscal year 126.20 2000, and five percent for fiscal year 2001 and thereafter, of 126.21 its general education revenue for in-service education for 126.22 programs under section 126.77, subdivision 2, for staff 126.23 development plans, including plans for challenging instructional 126.24 activities and experiences under section 126.70, and for 126.25 curriculum development and programs, other in-service education, 126.26 teachers' workshops, teacher conferences, the cost of substitute 126.27 teachers staff development purposes, and other related costs for 126.28 staff development efforts. Districts may expend an additional 126.29 amount of basic revenue for staff development based on their 126.30 needs. The school board shall initially allocate 50 percent of 126.31 the revenue to each school site in the district on a per teacher 126.32 basis, which shall be retained by the school site until used. 126.33 The board may retain 25 percent to be used for district wide 126.34 staff development efforts. The remaining 25 percent of the 126.35 revenue shall be used to make grants to school sites that 126.36 demonstrate exemplary use of allocated staff development 127.1 revenue. A grant may be used for any purpose authorized under 127.2 section 126.70, 126.77, subdivision 2, or for the costs of 127.3 curriculum development and programs, other in-service education, 127.4 teachers' workshops, teacher conferences, substitute teachers 127.5 for staff development purposes, and other staff development 127.6 efforts, and determined by the site decision-making team. The 127.7 site decision-making team must demonstrate to the school board 127.8 the extent to which staff at the site have met the outcomes of 127.9 the program. The board may withhold a portion of initial 127.10 allocation of revenue if the staff development outcomes are not 127.11 being met. 127.12 Sec. 6. Minnesota Statutes 1996, section 125.183, 127.13 subdivision 1, is amended to read: 127.14 Subdivision 1. The board of teaching consists of 11 127.15 members appointed by the governor, with the advice and consent 127.16 of the senate. Membership terms, compensation of members, 127.17 removal of members, the filling of membership vacancies, and 127.18 fiscal year and reporting requirements shall be as provided in 127.19 sections 214.07 to 214.09. No member may be reappointed for 127.20 more than one additional term. 127.21 Sec. 7. Minnesota Statutes 1996, section 125.183, 127.22 subdivision 3, is amended to read: 127.23 Subd. 3. [MEMBERSHIP.] Except for the representatives of 127.24 higher education and the public, to be eligible for appointment 127.25 to the board of teaching a person must be a teacher currently 127.26 teaching in a Minnesota school and fully licensed for the 127.27 position held and have at least five years teaching experience 127.28 in Minnesota, including the two years immediately preceding 127.29 nomination and appointment. Each nominee, other than a public 127.30 nominee, must be selected on the basis of professional 127.31 experience and knowledge of teacher education, accreditation, 127.32 and licensure. The board must be composed of: 127.33 (1) sixclassroomteachers who are currently teaching in a 127.34 Minnesota school, at least four of whom must be teaching in a 127.35 public school; 127.36 (2) one higher education representative, who must be a 128.1 faculty member preparing teachers; 128.2 (3) one school administrator; and 128.3 (4) three members of the public, two of whom must be 128.4 present or former members of school boards. 128.5 Sec. 8. Minnesota Statutes 1996, section 126.70, 128.6 subdivision 2a, is amended to read: 128.7 Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.] The staff 128.8 development committee shall adopt a staff development plan for 128.9 improving student achievement of education outcomes. The plan 128.10 must be consistent with education outcomes that the school board 128.11 determines. The plan shall include ongoing staff development 128.12 activities that contribute toward continuous improvement in 128.13 achievement of the following goals: 128.14 (1) improve student achievement of state and local 128.15 education standards in all areas of the curriculum by using best 128.16 practices methods; 128.17 (2) effectively meet the needs of a diverse student 128.18 population, including at-risk children, children with 128.19 disabilities, and gifted children, within the regular classroom 128.20 and other settings; 128.21 (3) provide an inclusive curriculum for a racially, 128.22 ethnically, and culturally diverse student population that is 128.23 consistent with the state education diversity rule and the 128.24 district's education diversity plan; 128.25 (4) improve staff ability to collaborate and consult with 128.26 one another and to resolve conflicts; 128.27 (5) effectively teach and model violence prevention policy 128.28 and curriculum that address issues of harassment and teach 128.29 nonviolent alternatives for conflict resolution; and 128.30 (6) provide teachers and other members of site-based 128.31 management teams with appropriate management and financial 128.32 management skills. 128.33 Sec. 9. Minnesota Statutes 1996, section 260.131, 128.34 subdivision 1b, is amended to read: 128.35 Subd. 1b. [CHILD IN NEED OF PROTECTION OR SERVICES; 128.36 HABITUAL TRUANT.] If there is a school attendance review board 129.1 or county attorney mediation program operating in the child's 129.2 school district, a petition alleging that a child is in need of 129.3 protection or services as a habitual truant under section 129.4 260.015, subdivision 2a, clause (12), may not be filed until the 129.5 applicable procedures under section 260A.06 or 260A.07 have been 129.6exhaustedfollowed. 129.7 Sec. 10. Minnesota Statutes 1996, section 260.132, 129.8 subdivision 1, is amended to read: 129.9 Subdivision 1. [NOTICE.] When a peace officer, or 129.10 attendance officer in the case of a habitual truant, has 129.11 probable cause to believe that a child: 129.12 (1) is in need of protection or services under section 129.13 260.015, subdivision 2a, clause (11) or (12); 129.14 (2) is a juvenile petty offender; or 129.15 (3) has committed a delinquent act that would be a petty 129.16 misdemeanor or misdemeanor if committed by an adult; 129.17 the officer may issue a notice to the child to appear in 129.18 juvenile court in the county in which the child is found or in 129.19 the county of the child's residence or, in the case of a 129.20 juvenile petty offense, or a petty misdemeanor or misdemeanor 129.21 delinquent act, the county in which the offense was committed. 129.22 If there is a school attendance review board or county attorney 129.23 mediation program operating in the child's school district, a 129.24 notice to appear in juvenile court for a habitual truant may not 129.25 be issued until the applicable procedures under section 260A.06 129.26 or 260A.07 have beenexhaustedfollowed. The officer shall file 129.27 a copy of the notice to appear with the juvenile court of the 129.28 appropriate county. If a child fails to appear in response to 129.29 the notice, the court may issue a summons notifying the child of 129.30 the nature of the offense alleged and the time and place set for 129.31 the hearing. If the peace officer finds it necessary to take 129.32 the child into custody, sections 260.165 and 260.171 shall apply. 129.33 Sec. 11. Minnesota Statutes 1996, section 260A.05, 129.34 subdivision 2, is amended to read: 129.35 Subd. 2. [GENERAL POWERS AND DUTIES.] A school attendance 129.36 review board shall prepare an annual plan to promote interagency 130.1 and community cooperation and to reduce duplication of services 130.2 for students with school attendance problems. The plan shall 130.3 include a description of truancy procedures and services 130.4 currently in operation within the board's jurisdiction, 130.5 including the programs and services under section 260A.04. A 130.6 board may provide consultant services to, and coordinate 130.7 activities of, truancy programs and services. If a board 130.8 determines that it will be unable to provide services for all 130.9 truant students who are referred to it, the board shall 130.10 establish procedures and criteria for determining whether to 130.11 accept referrals of students or refer them for other appropriate 130.12 action. 130.13 Sec. 12. Minnesota Statutes 1996, section 260A.06, is 130.14 amended to read: 130.15 260A.06 [REFERRAL OF TRUANT STUDENTS TO SCHOOL ATTENDANCE 130.16 REVIEW BOARD.] 130.17 Subdivision 1. [REFERRAL; NOTICE.] An attendance officer 130.18 or other school official may refer a student who is a continuing 130.19 truant to the school attendance review board. The person making 130.20 the referral shall provide a written notice by first class mail 130.21 or other reasonable means to the student and the student's 130.22 parent or legal guardian. The notice must: 130.23 (1) include the name and address of the board to which the 130.24 student has been referred and the reason for the referral; and 130.25 (2) indicate that the student, the parent or legal 130.26 guardian, and the referring person will meet with the board to 130.27 determine a proper disposition of the referral, unless the board 130.28 refers the student directly to the county attorney or for other 130.29 appropriate legal action. 130.30 Subd. 2. [MEETING; COMMUNITY SERVICES.] (a) Except as 130.31 provided in paragraph (b), the school attendance review board 130.32 shall schedule the meeting described in subdivision 1 and 130.33 provide notice of the meeting by first class mail or other 130.34 reasonable means to the student, parent or guardian, and 130.35 referring person. If the board determines that available 130.36 community services may resolve the attendance problems of the 131.1 truant student, the board shall refer the student or the 131.2 student's parent or guardian to participate in the community 131.3 services. The board may develop an agreement with the student 131.4 and parent or guardian that specifies the actions to be taken. 131.5 The board shall inform the student and parent or guardian that 131.6 failure to comply with any agreement or to participate in 131.7 appropriate community services will result in a referral to the 131.8 county attorney under subdivision 3. The board may require the 131.9 student or parent or guardian to provide evidence of 131.10 participation in available community services or compliance with 131.11 any agreement. 131.12 (b) A school attendance review board may refer a student 131.13 directly to the county attorney or for other appropriate legal 131.14 action under subdivision 3 if it has established procedures and 131.15 criteria for these referrals. 131.16 Subd. 3. [REFERRAL TO COUNTY ATTORNEY; OTHER APPROPRIATE 131.17 ACTION.] If the school attendance review board determines that 131.18 available community services cannot resolve the attendance 131.19 problems of the truant studentor, if the student or the parent 131.20 or guardian has failed to comply with any referrals or 131.21 agreements under subdivision 2 or to otherwise cooperate with 131.22 the board, or if the board determines that a student should be 131.23 referred directly under this subdivision, the board may: 131.24 (1) refer the matter to the county attorney under section 131.25 260A.07, if the county attorney has elected to participate in 131.26 the truancy mediation program; or 131.27 (2) if the county attorney has not elected to participate 131.28 in the truancy mediation program, refer the matter for 131.29 appropriate legal action against the child or the child's parent 131.30 or guardian under chapter 260 or section 127.20. 131.31 Sec. 13. Laws 1997, First Special Session chapter 4, 131.32 article 5, section 28, subdivision 9, is amended to read: 131.33 Subd. 9. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 131.34 grants to collaborative urban educator programs that prepare and 131.35 license people of color to teach: 131.36 $895,000 ..... 1998 132.1 $500,000 ..... 1999 132.2 This appropriation is available until June 30, 1999. 132.3 Sec. 14. Laws 1997, First Special Session chapter 4, 132.4 article 5, section 28, subdivision 10, is amended to read: 132.5 Subd. 10. [CHARTER SCHOOL BUILDING LEASE AID.] For 132.6 building lease aid according to section 124.248, subdivision 2a: 132.7$1,078,000$1,294,000 ..... 1998 132.8$1,577,000$1,889,000 ..... 1999 132.9 The 1999 appropriation includes$120,000$143,000 for 1998 132.10 and$1,457,000$1,746,000 for 1999. 132.11 This appropriation is contingent upon the commissioner of 132.12 children, families, and learning entering a contract with an 132.13 independent facilitator to attempt mediation of the education 132.14 adequacy lawsuits. 132.15 Sec. 15. Laws 1997, First Special Session chapter 4, 132.16 article 5, section 28, subdivision 11, is amended to read: 132.17 Subd. 11. [CHARTER SCHOOL START-UP GRANTS.] For charter 132.18 school start-up cost aid under Minnesota Statutes, section 132.19 124.248: 132.20$500,000$900,000 ..... 1998 132.21 $1,000,000 ..... 1999 132.22 The 1999 appropriation includes $100,000 for 1998 and 132.23 $900,000 for 1999. 132.24 This appropriation is contingent upon the commissioner of 132.25 children, families, and learning entering a contract with an 132.26 independent facilitator to attempt mediation of the education 132.27 adequacy lawsuits. 132.28 Any balance in the first year does not cancel but is 132.29 available in the second year. This appropriation may also be 132.30 used for grants to convert existing schools into charter schools. 132.31 Sec. 16. Laws 1997, First Special Session chapter 4, 132.32 article 5, section 28, subdivision 12, is amended to read: 132.33 Subd. 12. [GRADUATION RULE IMPLEMENTATION AT THE SITE 132.34 AID.] For graduation rule implementation: 132.35 $10,000,000 ..... 1998 132.36 $14,400,000 ..... 1999 133.1 (a) This appropriation shall be paid to districts according 133.2 to paragraph (b). The purpose of the aid is to accelerate the 133.3 implementation of the graduation rule throughout all education 133.4 sites in the district through intensive staff development and 133.5 decentralized decision making. The board shall work with the 133.6 teaching staff in the district to determine the most effective 133.7 staff development processes to assure an acceleration of the 133.8 implementation. This appropriation is one-time only. 133.9 (b) A district shall receive aid equal to $10 for fiscal 133.10 year 1998 and $15 for fiscal year 1999 times the number of fund 133.11 balance pupil units in the district for fiscal year 133.12 1998 excluding pupil units attributable to shared time pupils. 133.13 At least 30 percent in fiscal year 1998 and 100 percent in 133.14 fiscal year 1999 must be used for the purposes of paragraph (a). 133.15 Sec. 17. Laws 1997, First Special Session chapter 4, 133.16 article 6, section 20, subdivision 4, is amended to read: 133.17 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 133.18 school lunch aid according to Minnesota Statutes, section 133.19 124.646, and Code of Federal Regulations, title 7, section 133.20 210.17, and for food storage and transportation costs for United 133.21 States Department of Agriculture donated commodities; and for a 133.22 temporary transfer to the commodity processing revolving fund to 133.23 provide cash flow to permit schools and other recipients of 133.24 donated commodities to take advantage of volume processing rates 133.25 and for school milk aid according to Minnesota Statutes, section 133.26 124.648: 133.27 $7,254,000 ..... 1998 133.28$7,254,000$7,489,000 ..... 1999 133.29 (b) Any unexpended balance remaining from the 133.30 appropriations in this subdivision shall be prorated among 133.31 participating schools based on the number of free, reduced, and 133.32 fully paid federally reimbursable student lunches served during 133.33 that school year. 133.34 (c) If the appropriation amount attributable to either year 133.35 is insufficient, the rate of payment for each fully paid student 133.36 lunch shall be reduced and the aid for that year shall be 134.1 prorated among participating schools so as not to exceed the 134.2 total authorized appropriation for that year. 134.3 (d) Any temporary transfer processed in accordance with 134.4 this subdivision to the commodity processing fund will be 134.5 returned by June 30 in each year so that school lunch aid and 134.6 food storage costs can be fully paid as scheduled. 134.7 (e) Not more than $800,000 of the amount appropriated each 134.8 year may be used for school milk aid. 134.9 (f) The commissioner may reduce other future aid and grant 134.10 payments due to school districts and other organizations for the 134.11 costs of processing and storage of commodities used by the 134.12 district or organization. 134.13 Sec. 18. [GRADUATION RULE RESOURCE GRANTS.] 134.14 The commissioner of children, families, and learning shall 134.15 award grants to develop learning resources for the state's 134.16 results-oriented graduation rule. The grants are available to: 134.17 (1) provide staff development for implementation of the 134.18 graduation standards, including training in economics, the arts, 134.19 and training in technology by community members; 134.20 (2) establish and equip learning resource centers; 134.21 (3) develop and sustain historical educational programming; 134.22 (4) make historical collections available via the Internet; 134.23 (5) develop a system of graduation rule implementation for 134.24 alternative programs; 134.25 (6) develop systemic site decision-making models and 134.26 implementing site decision making in schools; 134.27 (7) expand attention and reading readiness programs; and 134.28 (8) provide for reporting systems. 134.29 The commissioner may require a match of private funds as 134.30 part of the application process. The commissioner shall 134.31 consider proposals from New Visions school, the Minnesota 134.32 Council on Economic Education, the Minnesota historical society, 134.33 the Lola and Rudy Perpich Center for the Arts, Murphy's Landing, 134.34 Ironworld, parent or community technology specialists working or 134.35 volunteering in schools, and higher education institutions 134.36 working in conjunction with a school district or consortium of 135.1 school districts. 135.2 Sec. 19. [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 135.3 (a) The department of children, families, and learning 135.4 shall contract for a clearinghouse of best educational practices 135.5 and shared decision-making for improving student performance, 135.6 particularly for at-risk students. The clearinghouse must: 135.7 (1) align with all current activities for best educational 135.8 practice, shared decision-making, and the results-oriented 135.9 graduation rule; 135.10 (2) conduct research and collect information on the best 135.11 educational practices affecting a school's management, 135.12 operation, financing, personnel and instruction; 135.13 (3) train quality intervention teams composed of highly 135.14 qualified educators to assist a school's staff in working to 135.15 improve student performance, particularly for at-risk students, 135.16 by addressing a school's management, operation, financing, 135.17 personnel and instruction practices; 135.18 (4) develop and make available to interested school 135.19 districts a model for an independent educational audit that 135.20 evaluates a school's performance strengths and weakness and 135.21 makes specific recommendations for reinforcing performance 135.22 strengths and improving performance weaknesses cited in the 135.23 audit; 135.24 (5) using the comprehensive assessment framework under 135.25 section 121.1115, subdivision 1b, paragraph (a), develop student 135.26 and school performance indicators schools may use to reliably 135.27 measure school improvement over time; and 135.28 (6) provide staff development opportunities to assist 135.29 teachers and other educators in integrating educational reform 135.30 measures into a school's best practices. 135.31 (b) The clearinghouse must assist school districts, at 135.32 district request, and recommend methods to engage parents and 135.33 communities in improving student performance, particularly for 135.34 at-risk students. 135.35 (c) The clearinghouse must collaborate with community 135.36 stakeholders, including the urban league, the urban coalition, 136.1 the council on Asian-Pacific Minnesotans, the Chicano/Latino 136.2 affairs council, the council on Black Minnesotans, the Indian 136.3 affairs council, and the communities and color institute and 136.4 Minneapolis pathways at the University of Minnesota's Roy 136.5 Wilkins center. 136.6 Sec. 20. [REPORT.] 136.7 The commissioner of children, families, and learning, in 136.8 consultation with the Minnesota state colleges and universities, 136.9 the University of Minnesota, and the private college council, 136.10 shall examine the training of teachers entering the workforce in 136.11 Minnesota. The commissioner shall also consult with the 136.12 Minnesota federation of teachers and the Minnesota education 136.13 association for this report. The report shall make 136.14 recommendations for proposed legislative action to promote a 136.15 more direct connection between teacher training and student 136.16 learning needs under the state's results-oriented graduation 136.17 rule. The commissioner shall seek assistance from the state 136.18 public policy unit within the Humphrey Institute of Minnesota 136.19 for existing research in this area for this report. The 136.20 commissioner shall report its findings to education committees 136.21 of the legislature by December 1, 1998. The report shall 136.22 examine at least the following areas: 136.23 (1) whether teachers entering the workforce are prepared to 136.24 meet the basic skills needs and higher learning needs of 136.25 students under the state's results-oriented graduation rule; 136.26 (2) identify teacher skills which are considered crucial to 136.27 the success of students in a knowledge-based economy and 136.28 determine if Minnesota colleges and universities are teaching 136.29 those skills adequately to teachers; 136.30 (3) examine the ability of Minnesota colleges and 136.31 universities to provide training to existing teachers who are 136.32 seeking further staff development experiences in order to meet 136.33 the students' needs under the graduation rule; and 136.34 (4) identify resources and organizations outside of the 136.35 colleges and universities that can provide training and teaching 136.36 experiences necessary to meet the needs of students under the 137.1 graduation rule. 137.2 Sec. 21. [GANG PREVENTION AND INTERVENTION PROGRAM.] 137.3 Subdivision 1. [GANG PREVENTION AND INTERVENTION.] The 137.4 commissioner of children, families, and learning shall develop 137.5 and administer a gang prevention and intervention program to 137.6 provide services (1) to young people who are at risk for 137.7 criminal gang involvement; and (2) to young people who are 137.8 interested in terminating their gang affiliation. 137.9 Subd. 2. [GRANT APPLICATION.] The department of children, 137.10 families, and learning, in consultation with the department of 137.11 public safety, department of corrections, office of drug policy 137.12 and violence prevention, the criminal gang strike force, one or 137.13 more representatives of community-based programs that have 137.14 conducted research on street gang culture, and one or more 137.15 individuals having direct experience in gang life, shall develop 137.16 a grant application that specifies the eligibility criteria for 137.17 receiving grants. A committee selected by this group also must 137.18 evaluate applications for grants received by the commissioner of 137.19 children, families, and learning and make recommendations to the 137.20 commissioner of children, families, and learning on the awarding 137.21 of grants. 137.22 Subd. 3. [ELIGIBILITY FOR GRANTS.] A local organization 137.23 must meet the following criteria to be eligible for a grant 137.24 under the program: 137.25 (1) it must be a private, nonprofit organization or local 137.26 public agency; and 137.27 (2) it must offer and provide services to young people to 137.28 prevent gang involvement or to intervene in and end gang 137.29 involvement, including, but not limited to, after-school 137.30 activities, educational opportunities, job skill development, 137.31 community service, life skills, medical services, social 137.32 services, and counseling. 137.33 Subd. 4. [ELIGIBILITY FOR SERVICES.] A person who is 137.34 eligible for services must be at least seven years old and not 137.35 more than 25 years old, at the time the person first receives 137.36 services, unless the organization receiving a grant receives 138.1 advance approval from the commissioner of children, families, 138.2 and learning to provide services outside of this age range. 138.3 Subd. 5. [REPORT TO LEGISLATURE.] By December 1, 1998, the 138.4 commissioner of children, families, and learning shall submit a 138.5 report to the chairs of the education committees of the 138.6 legislature on the grants issued under this section. 138.7 Sec. 22. [RESIDENTIAL ACADEMIES PROGRAM.] 138.8 (a) The commissioner of children, families, and learning 138.9 may award grants to public or private organizations or a 138.10 collaboration of organizations for start-up costs for 138.11 residential academies for students in grades 7 through 12 who 138.12 express a desire to attend a residential academy, have 138.13 demonstrated an interest in academic achievement and a 138.14 likelihood of academic success, and who: 138.15 (1) perform or are at risk of performing below the academic 138.16 performance level for pupils of the same age; 138.17 (2) are at least one year behind in satisfactorily 138.18 completing coursework or obtaining credits for graduation; or 138.19 (3) have experienced homelessness or an unstable home 138.20 environment. 138.21 (b) The residential academy must provide a secondary 138.22 education program for the resident students to: 138.23 (1) increase school attendance; 138.24 (2) increase academic achievement; 138.25 (3) enable the students to earn a high school diploma; and 138.26 (4) improve transition to post-secondary education. 138.27 The academy may collaborate with a school district or 138.28 charter school to provide the secondary education program. 138.29 (c) The commissioner of children, families, and learning 138.30 shall prescribe the form and manner of applications. The 138.31 commissioner shall consider the academy's location, 138.32 collaborative effort among various organizations, family and 138.33 community involvement, provision of social services, 138.34 after-school enrichment, and provision of instruction throughout 138.35 the entire year in awarding grants. The commissioner shall 138.36 evaluate the residential academies' program and report to the 139.1 education committees of the legislature by December 1, 2000. 139.2 Sec. 23. [BOARD OF TEACHING.] 139.3 The board of teaching must convene a working group to 139.4 recommend changes that would make employment data on licensed 139.5 education personnel more accessible to school districts. The 139.6 working group must consist of one representative from each of 139.7 the following agencies and organizations: the state board of 139.8 teaching, the state board of education, the department of 139.9 children, families, and learning, the department of 139.10 administration, the Minnesota education association, the 139.11 Minnesota federation of teachers, the Minnesota association of 139.12 school administrators, the Minnesota association of school 139.13 personnel administrators, the Minnesota school boards 139.14 association, and any other representatives that the board 139.15 determines are relevant. Expenses incurred by working group 139.16 members must be reimbursed by the agencies and organizations 139.17 they represent. By December 1, 1998, the board of teaching must 139.18 submit the working group's recommendations to the chairs of the 139.19 kindergarten through grade 12 education funding committees of 139.20 the legislature. 139.21 The working group must address at least the following: 139.22 (1) to what extent a central database of employment history 139.23 of licensed education personnel would be useful and how would it 139.24 operate; 139.25 (2) to what extend information regarding complaints against 139.26 licensed education personnel received by the board of teaching 139.27 or the board of education should be made available to school 139.28 districts; 139.29 (3) to what extent disciplinary actions by the board of 139.30 teaching or the board of education should be made available to 139.31 school districts; and 139.32 (4) to what extent guidelines regarding factors to consider 139.33 in hiring educational personnel would be useful to school 139.34 districts, and, if so, what the guidelines might include. 139.35 Sec. 24. [PROFILE OF LEARNING REPORT.] 139.36 The department of children, families, and learning must 140.1 submit a written report to the education committees of the 140.2 legislature by January 15, 1999, itemizing all direct and 140.3 indirect state and local revenues actually expended in 140.4 developing and fully implementing the profile of learning rule 140.5 under Minnesota Statutes 1997, section 121.11, subdivision 7c, 140.6 and all projected future expenditures needed to fully implement 140.7 the rule statewide. Among the costs to be itemized in the 140.8 report are the costs to date and projected future costs of 140.9 developing, promulgating, and fully implementing the rule 140.10 statewide and the costs to date and projected future costs of 140.11 providing staff development training to fully implement the rule 140.12 statewide. 140.13 Sec. 25. [APPROPRIATIONS.] 140.14 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 140.15 LEARNING.] The sums indicated in this section are appropriated 140.16 from the general fund to the department of children, families, 140.17 and learning for the fiscal years designated. 140.18 Subd. 2. [CLEARINGHOUSE OF BEST EDUCATIONAL 140.19 PRACTICES.] For a clearinghouse of best educational practices. 140.20 $1,979,000 ..... 1999 140.21 Subd. 3. [GRADUATION RULE RESOURCE GRANTS.] For graduation 140.22 rule resource grants. 140.23 $3,300,000 ..... 1999 140.24 This is a one-time appropriation. 140.25 Subd. 4. [GANG PREVENTION AND INTERVENTION.] To develop 140.26 and administer the gang prevention and intervention program. 140.27 $50,000 ..... 1999 140.28 This appropriation is available until June 30, 1999. 140.29 Sec. 26. [EFFECTIVE DATE.] 140.30 Sections 5, 14, 15, and 24 are effective the day following 140.31 final enactment. Section 16 is effective for fiscal year 1998. 140.32 ARTICLE 6 140.33 EDUCATION POLICY 140.34 Section 1. Minnesota Statutes 1996, section 15.014, 140.35 subdivision 3, is amended to read: 140.36 Subd. 3. [TASK FORCE FOR CURRICULUM DEVELOPMENT PURPOSES.] 141.1 In addition to the task forces for which compensation of members 141.2 is authorized in subdivision 2, thestate board of141.3educationcommissioner of children, families, and learning may 141.4 createnot to exceedno more than ten task forces, to be 141.5 compensated as provided in section 15.059, subdivision 6. A 141.6 task force created pursuant to this subdivision shall be for 141.7 curriculum development purposes only and shall expire within one 141.8 year after its creation. The task force shall report to 141.9 thestate boardcommissioner before its expiration or upon the 141.10 completion of its task, whichever occurs first. 141.11 Sec. 2. Minnesota Statutes 1997 Supplement, section 141.12 16B.465, subdivision 4, is amended to read: 141.13 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 141.14 require the participation of state agencies, the state board of141.15education,and the board of trustees of the Minnesota state 141.16 colleges and universities and may request the participation of 141.17 the board of regents of the University of Minnesota, in the 141.18 planning and implementation of the network to provide 141.19 interconnective technologies. The commissioner shall establish 141.20 reimbursement rates in cooperation with the commissioner of 141.21 finance to be billed to participating agencies and educational 141.22 institutions sufficient to cover the operating, maintenance, and 141.23 administrative costs of the system. 141.24 (b) A direct appropriation made to an educational 141.25 institution for usage costs associated with MNet must only be 141.26 used by the educational institution for payment of usage costs 141.27 of the network as billed by the commissioner of administration. 141.28 Sec. 3. Minnesota Statutes 1996, section 119B.20, 141.29 subdivision 5, is amended to read: 141.30 Subd. 5. [CHILD CARE WORKER.] "Child care worker" means a 141.31 person who cares for children for compensation, including a 141.32 licensed provider of child care services, an employee of a 141.33 provider, a person who has applied for a license as a provider, 141.34 or a person who meets the standards established by thestate141.35board of educationcommissioner of children, families, and 141.36 learning. 142.1 Sec. 4. Minnesota Statutes 1996, section 119B.20, 142.2 subdivision 8, is amended to read: 142.3 Subd. 8. [INTERIM FINANCING.] "Interim financing" means 142.4 funds to carry out such activities as are necessary for family 142.5 day care homes, group family day care homes, and child care 142.6 centers to receive and maintain state licensing, to expand an 142.7 existing program or to improve program quality, and to provide 142.8 operating funds for a period of six consecutive months after a 142.9 family day care home, group family day care home, or child care 142.10 center becomes licensed or satisfies standards of thestate142.11board of educationcommissioner of children, families, and 142.12 learning. Interim financing may not exceed a period of 18 142.13 months. 142.14 Sec. 5. Minnesota Statutes 1996, section 119B.20, 142.15 subdivision 12, is amended to read: 142.16 Subd. 12. [TRAINING PROGRAM.] "Training program" means 142.17 child development courses offered by an accredited 142.18 post-secondary institution or similar training approved by a 142.19 county board or the department of children, families, and 142.20 learning. To qualify as a training program under this section, 142.21 a course of study must teach specific skills that meet licensing 142.22 requirements or requirements of thestate board of142.23educationcommissioner of children, families, and learning. 142.24 Sec. 6. Minnesota Statutes 1996, section 120.03, 142.25 subdivision 1, is amended to read: 142.26 Subdivision 1. Every child who has a hearing impairment, 142.27 visual disability, speech or language impairment, physical 142.28 handicap, other health impairment, mental handicap, 142.29 emotional/behavioral disorder, specific learning disability, or 142.30 deaf/blind disability and needs special instruction and 142.31 services, as determined by the standards of thestate142.32boardcommissioner, is a child with a disability. In addition, 142.33 every child under age five who needs special instruction and 142.34 services, as determined by the standards of thestate board142.35 commissioner, because the child has a substantial delay or has 142.36 an identifiable physical or mental condition known to hinder 143.1 normal development is a child with a disability. 143.2 Sec. 7. Minnesota Statutes 1996, section 120.03, 143.3 subdivision 5, is amended to read: 143.4 Subd. 5. A child with a short-term or temporary physical 143.5 or emotional illness or disability, as determined by the 143.6 standards of thestate boardcommissioner, is not a child with a 143.7 disability. 143.8 Sec. 8. Minnesota Statutes 1997 Supplement, section 143.9 120.05, subdivision 2, is amended to read: 143.10 Subd. 2. [DEFINITIONS.] (1) Elementary school means any 143.11 school with building, equipment, courses of study, class 143.12 schedules, enrollment of pupils ordinarily in prekindergarten 143.13 through grade 6 or any portion thereof and staff meeting the 143.14 standards established by thestate board of education143.15 commissioner of children, families, and learning. 143.16 Thestate board of educationcommissioner of children, 143.17 families, and learning shall not close a school or deny any 143.18 state aids to a district for its elementary schools because of 143.19 enrollment limitations classified in accordance with the 143.20 provisions of clause (1). 143.21 (2) Middle school means any school other than a secondary 143.22 school giving an approved course of study in a minimum of three 143.23 consecutive grades above 4th but below 10th with building, 143.24 equipment, courses of study, class schedules, enrollment, and 143.25 staff meeting the standards established by thestate board of143.26educationcommissioner of children, families, and learning. 143.27 (3) Secondary school means any school with building, 143.28 equipment, courses of study, class schedules, enrollment of 143.29 pupils ordinarily in grades 7 through 12 or any portion thereof, 143.30 and staff meeting the standards established by thestate board143.31of educationcommissioner of children, families, and learning. 143.32 (4) A vocational center school is one serving a group of 143.33 secondary schools with approved areas of secondary vocational 143.34 training and offering vocational secondary and adult programs 143.35 necessary to meet local needs and meeting standards established 143.36 by thestate board of educationcommissioner of children, 144.1 families, and learning. 144.2 Sec. 9. Minnesota Statutes 1996, section 120.062, 144.3 subdivision 5, is amended to read: 144.4 Subd. 5. [DESEGREGATION DISTRICT TRANSFERS.] (a) This 144.5 subdivision applies to a transfer into or out of a district that 144.6 has a desegregation plan approved by the commissioner of 144.7 children, families, and learning. 144.8 (b) An application to transfer may be submitted at any time 144.9 for enrollment beginning at any time. 144.10 (c) The parent or guardian of a pupil who is a resident of 144.11 a district that has a desegregation plan must submit an 144.12 application to the resident district. If the district accepts 144.13 the application, it must forward the application to the 144.14 nonresident district. 144.15 (d) The parent or guardian of a pupil who applies for 144.16 enrollment in a nonresident district that has a desegregation 144.17 plan must submit an application to the nonresident district. 144.18 (e) Each district must accept or reject an application it 144.19 receives and notify the parent or guardian in writing within 30 144.20 calendar days of receiving the application. A notification of 144.21 acceptance must include the date enrollment can begin. 144.22 (f) If an application is rejected, the district must state 144.23 the reason for rejection in the notification. If a district 144.24 that has a desegregation plan rejects an application for a 144.25 reason related to the desegregation plan, the district must 144.26 state with specificity how acceptance of the application would 144.27 result in noncompliance withstate boarddepartment rules with 144.28 respect to the school or program for which application was made. 144.29 (g) If an application is accepted, the parent or guardian 144.30 must notify the nonresident district in writing within 15 144.31 calendar days of receiving the acceptance whether the pupil 144.32 intends to enroll in the nonresident district. Notice of 144.33 intention to enroll obligates the pupil to enroll in the 144.34 nonresident district, unless the school boards of the resident 144.35 and nonresident districts agree otherwise. If a parent or 144.36 guardian does not notify the nonresident district, the pupil may 145.1 not enroll in that nonresident district at that time, unless the 145.2 school boards of the resident and nonresident district agree 145.3 otherwise. 145.4 (h) Within 15 calendar days of receiving the notice from 145.5 the parent or guardian, the nonresident district shall notify 145.6 the resident district in writing of the pupil's intention to 145.7 enroll in the nonresident district. 145.8 (i) A pupil enrolled in a nonresident district under this 145.9 subdivision is not required to make annual or periodic 145.10 application for enrollment but may remain enrolled in the same 145.11 district. A pupil may transfer to the resident district at any 145.12 time. 145.13 (j) A pupil enrolled in a nonresident district and applying 145.14 to transfer into or out of a district that has a desegregation 145.15 plan must follow the procedures of this subdivision. For the 145.16 purposes of this type of transfer, "resident district" means the 145.17 nonresident district in which the pupil is enrolled at the time 145.18 of application. 145.19 (k) A district that has a desegregation plan approved by 145.20 thestate board of educationcommissioner of children, families, 145.21 and learning must accept or reject each individual application 145.22 in a manner that will enable compliance with its desegregation 145.23 plan. 145.24 Sec. 10. Minnesota Statutes 1996, section 120.064, 145.25 subdivision 4, is amended to read: 145.26 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 145.27 authorize one or more licensed teachers under section 125.05, 145.28 subdivision 1, to operate a charter school subject to approval 145.29 by thestate board of educationcommissioner of children, 145.30 families, and learning. If a school board elects not to sponsor 145.31 a charter school, the applicant may appeal the school board's 145.32 decision to thestate board of educationcommissioner of 145.33 children, families, and learning if two members of the school 145.34 board voted to sponsor the school. If thestate145.35boardcommissioner authorizes the school, thestate board145.36 commissioner shall sponsor the school according to this 146.1 section. The school shall be organized and operated as a 146.2 cooperative under chapter 308A or nonprofit corporation under 146.3 chapter 317A. 146.4 (b) Before the operators may form and operate a school, the 146.5 sponsor must file an affidavit with thestate board of education146.6 commissioner of children, families, and learning stating its 146.7 intent to authorize a charter school. The affidavit must state 146.8 the terms and conditions under which the sponsor would authorize 146.9 a charter school. Thestate boardcommissioner must approve or 146.10 disapprove the sponsor's proposed authorization within 60 days 146.11 of receipt of the affidavit. Failure to obtainstate boardthe 146.12 commissioner's approval precludes a sponsor from authorizing the 146.13 charter school that was the subject of the affidavit. 146.14 (c) The operators authorized to organize and operate a 146.15 school shall hold an election for members of the school's board 146.16 of directors in a timely manner after the school is operating. 146.17 Any staff members who are employed at the school, including 146.18 teachers providing instruction under a contract with a 146.19 cooperative, and all parents of children enrolled in the school 146.20 may participate in the election. Licensed teachers employed at 146.21 the school, including teachers providing instruction under a 146.22 contract with a cooperative, must be a majority of the members 146.23 of the board of directors. A provisional board may operate 146.24 before the election of the school's board of directors. Board 146.25 of director meetings must comply with section 471.705. 146.26 (d) The granting or renewal of a charter by a sponsoring 146.27 entity shall not be conditioned upon the bargaining unit status 146.28 of the employees of the school. 146.29 Sec. 11. Minnesota Statutes 1997 Supplement, section 146.30 120.064, subdivision 8, is amended to read: 146.31 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 146.32 all applicable state and local health and safety requirements. 146.33 (b) A school sponsored by a school board may be located in 146.34 any district, unless the school board of the district of the 146.35 proposed location disapproves by written resolution. If such a 146.36 school board denies a request to locate within its boundaries a 147.1 charter school sponsored by another school board, the sponsoring 147.2 school board may appeal to thestate board of education147.3 commissioner of children, families, and learning. If thestate147.4boardcommissioner authorizes the school, thestate board147.5 commissioner shall sponsor the school. 147.6 (c) A charter school must be nonsectarian in its programs, 147.7 admission policies, employment practices, and all other 147.8 operations. A sponsor may not authorize a charter school or 147.9 program that is affiliated with a nonpublic sectarian school or 147.10 a religious institution. 147.11 (d) Charter schools shall not be used as a method of 147.12 providing education or generating revenue for students who are 147.13 being home-schooled. 147.14 (e) The primary focus of a charter school must be to 147.15 provide a comprehensive program of instruction for at least one 147.16 grade or age group from five through 18 years of age. 147.17 Instruction may be provided to people younger than five years 147.18 and older than 18 years of age. 147.19 (f) A charter school may not charge tuition. 147.20 (g) A charter school is subject to and shall comply with 147.21 chapter 363 and section 126.21. 147.22 (h) A charter school is subject to and shall comply with 147.23 The Pupil Fair Dismissal Act, sections 127.26 to 127.39, and the 147.24 Minnesota public school fee law, sections 120.71 to 120.76. 147.25 (i) A charter school is subject to the same financial 147.26 audits, audit procedures, and audit requirements as a school 147.27 district. The audit must be consistent with the requirements of 147.28 sections 121.904 to 121.917, except to the extent deviations are 147.29 necessary because of the program at the school. The department 147.30 of children, families, and learning, state auditor, or 147.31 legislative auditor may conduct financial, program, or 147.32 compliance audits. 147.33 (j) A charter school is a school district for the purposes 147.34 of tort liability under chapter 466. 147.35 Sec. 12. Minnesota Statutes 1997 Supplement, section 147.36 120.064, subdivision 10, is amended to read: 148.1 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 148.2 design its programs to at least meet the outcomes adopted by the 148.3state board of educationcommissioner of children, families, and 148.4 learning for public school students. In the absence ofstate148.5boardrequirements adopted by the commissioner, the school must 148.6 meet the outcomes contained in the contract with the sponsor. 148.7 The achievement levels of the outcomes contained in the contract 148.8 may exceed the achievement levels of any outcomes adopted by the 148.9state boardcommissioner for public school students. 148.10 Sec. 13. Minnesota Statutes 1996, section 120.064, 148.11 subdivision 14, is amended to read: 148.12 Subd. 14. [REPORTS.] A charter school must report at least 148.13 annually to its sponsor and thestate board of education148.14 commissioner of children, families, and learning the information 148.15 required by the sponsor or thestate boardcommissioner. The 148.16 reports are public data under chapter 13. 148.17 Sec. 14. Minnesota Statutes 1997 Supplement, section 148.18 120.064, subdivision 14a, is amended to read: 148.19 Subd. 14a. [REVIEW AND COMMENT.] The department shall 148.20 review and comment on the evaluation, by the chartering school 148.21 district, of the performance of a charter school before the 148.22 charter school's contract is renewed. The information from the 148.23 review and comment shall be reported to thestate board of148.24educationcommissioner of children, families, and learning in a 148.25 timely manner. Periodically, thestate boardcommissioner shall 148.26 report trends or suggestions based on the evaluation of charter 148.27 school contracts to the education committees of the state 148.28 legislature. 148.29 Sec. 15. Minnesota Statutes 1996, section 120.064, 148.30 subdivision 17, is amended to read: 148.31 Subd. 17. [INITIAL COSTS.] A sponsor may authorize a 148.32 charter school before the applicant has secured its space, 148.33 equipment, facilities, and personnel if the applicant indicates 148.34 the authority is necessary for it to raise working capital. A 148.35 sponsor may not authorize a school before thestate board of148.36educationcommissioner of children, families, and learning has 149.1 approved the authorization. 149.2 Sec. 16. Minnesota Statutes 1996, section 120.064, 149.3 subdivision 21, is amended to read: 149.4 Subd. 21. [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 149.5 duration of the contract with a sponsor shall be for the term 149.6 contained in the contract according to subdivision 5. The 149.7 sponsor may or may not renew a contract at the end of the term 149.8 for any ground listed in paragraph (b). A sponsor may 149.9 unilaterally terminate a contract during the term of the 149.10 contract for any ground listed in paragraph (b). At least 60 149.11 days before not renewing or terminating a contract, the sponsor 149.12 shall notify the board of directors of the charter school of the 149.13 proposed action in writing. The notice shall state the grounds 149.14 for the proposed action in reasonable detail and that the 149.15 charter school's board of directors may request in writing an 149.16 informal hearing before the sponsor within 14 days of receiving 149.17 notice of nonrenewal or termination of the contract. Failure by 149.18 the board of directors to make a written request for a hearing 149.19 within the 14-day period shall be treated as acquiescence to the 149.20 proposed action. Upon receiving a timely written request for a 149.21 hearing, the sponsor shall give reasonable notice to the charter 149.22 school's board of directors of the hearing date. The sponsor 149.23 shall conduct an informal hearing before taking final action. 149.24 The sponsor shall take final action to renew or not renew a 149.25 contract by the last day of classes in the school year. If the 149.26 sponsor is a local school board, the school's board of directors 149.27 may appeal the sponsor's decision to thestate board of149.28educationcommissioner of children, families, and learning. 149.29 (b) A contract may be terminated or not renewed upon any of 149.30 the following grounds: 149.31 (1) failure to meet the requirements for pupil performance 149.32 contained in the contract; 149.33 (2) failure to meet generally accepted standards of fiscal 149.34 management; 149.35 (3) for violations of law; or 149.36 (4) other good cause shown. 150.1 If a contract is terminated or not renewed, the school 150.2 shall be dissolved according to the applicable provisions of 150.3 chapter 308A or 317A. 150.4 Sec. 17. Minnesota Statutes 1996, section 120.064, 150.5 subdivision 24, is amended to read: 150.6 Subd. 24. [IMMUNITY.] Thestate board of education,150.7members of the state boardcommissioner of children, families, 150.8 and learning, a sponsor, members of the board of a sponsor in 150.9 their official capacity, and employees of a sponsor are immune 150.10 from civil or criminal liability with respect to all activities 150.11 related to a charter school they approve or sponsor. The board 150.12 of directors shall obtain at least the amount of and types of 150.13 insurance required by the contract, according to subdivision 5. 150.14 Sec. 18. Minnesota Statutes 1996, section 120.101, 150.15 subdivision 7, is amended to read: 150.16 Subd. 7. [REQUIREMENTS FOR INSTRUCTORS.] A person who is 150.17 providing instruction to a child must meet at least one of the 150.18 following requirements: 150.19 (1) hold a valid Minnesota teaching license in the field 150.20 and for the grade level taught; 150.21 (2) be directly supervised by a person holding a valid 150.22 Minnesota teaching license; 150.23 (3) successfully complete a teacher competency examination; 150.24 (4) provide instruction in a school that is accredited by 150.25 an accrediting agency, recognized according to section 123.935, 150.26 subdivision 7, or recognized by thestate board of150.27educationcommissioner of children, families, and learning; 150.28 (5) hold a baccalaureate degree; or 150.29 (6) be the parent of a child who is assessed according to 150.30 the procedures in subdivision 8. 150.31 Any person providing instruction in a public school must 150.32 meet the requirements of clause (1). 150.33 Sec. 19. Minnesota Statutes 1996, section 120.101, 150.34 subdivision 8, is amended to read: 150.35 Subd. 8. [ASSESSMENT OF PERFORMANCE.] (a) Each year the 150.36 performance of every child who is not enrolled in a public 151.1 school must be assessed using a nationally norm-referenced 151.2 standardized achievement examination. The superintendent of the 151.3 district in which the child receives instruction and the person 151.4 in charge of the child's instruction must agree about the 151.5 specific examination to be used and the administration and 151.6 location of the examination. 151.7 (b) To the extent the examination in paragraph (a) does not 151.8 provide assessment in all of the subject areas in subdivision 6, 151.9 the parent must assess the child's performance in the applicable 151.10 subject area. This requirement applies only to a parent who 151.11 provides instruction and does not meet the requirements of 151.12 subdivision 7, clause (1), (2), or (3). 151.13 (c) If the results of the assessments in paragraphs (a) and 151.14 (b) indicate that the child's performance on the total battery 151.15 score is at or below the 30th percentile or one grade level 151.16 below the performance level for children of the same age, the 151.17 parent shall obtain additional evaluation of the child's 151.18 abilities and performance for the purpose of determining whether 151.19 the child has learning problems. 151.20 (d) A child receiving instruction from a nonpublic school, 151.21 person, or institution that is accredited by an accrediting 151.22 agency, recognized according to section 123.935, subdivision 7, 151.23 or recognized by thestate board of educationcommissioner of 151.24 children, families, and learning, is exempt from the 151.25 requirements of this subdivision. 151.26 Sec. 20. Minnesota Statutes 1996, section 120.102, 151.27 subdivision 3, is amended to read: 151.28 Subd. 3. [EXEMPTIONS.] A nonpublic school, person, or 151.29 other institution that is accredited by an accrediting agency, 151.30 recognized according to section 123.935, or recognized by the 151.31state board of educationcommissioner of children, families, and 151.32 learning, is exempt from the requirements in subdivisions 1 and 151.33 2, except for the requirement in subdivision 1, clause (1). 151.34 Sec. 21. Minnesota Statutes 1997 Supplement, section 151.35 120.1045, subdivision 1, is amended to read: 151.36 Subdivision 1. [BACKGROUND CHECK REQUIRED.] (a) A school 152.1 hiring authority, as defined in subdivision 4, shall request a 152.2 criminal history background check from the superintendent of the 152.3 bureau of criminal apprehension on all individuals who are 152.4 offered employment in the school, as defined in subdivision 4. 152.5 In order to be eligible for employment, an individual who is 152.6 offered employment must provide an executed criminal history 152.7 consent form and a money order or check payable to either the 152.8 bureau of criminal apprehension or the school hiring authority, 152.9 at the election of the school hiring authority, in an amount 152.10 equal to the actual cost to the bureau of criminal apprehension 152.11 and the school district of conducting the criminal history 152.12 background check. A school hiring authority electing to receive 152.13 payment may, at its discretion, accept payment in the form of a 152.14 negotiable instrument other than a money order or check and 152.15 shall pay the superintendent of the bureau of criminal 152.16 apprehension directly to conduct the background check. The 152.17 superintendent of the bureau of criminal apprehension shall 152.18 conduct the background check by retrieving criminal history data 152.19 maintained in the criminal justice information system 152.20 computers. A school hiring authority, at its discretion, may 152.21 elect not to request a criminal history background check on an 152.22 individual who holds an initial entrance license issued by the 152.23 state board of teaching or thestate board of152.24educationcommissioner of children, families, and learning 152.25 within the 12 months preceding an offer of employment. 152.26 (b) A school hiring authority may use the results of a 152.27 criminal background check conducted at the request of another 152.28 school hiring authority if: 152.29 (1) the results of the criminal background check are on 152.30 file with the other school hiring authority or otherwise 152.31 accessible; 152.32 (2) the other school hiring authority conducted a criminal 152.33 background check within the previous 12 months; 152.34 (3) the individual who is the subject of the criminal 152.35 background check executes a written consent form giving a school 152.36 hiring authority access to the results of the check; and 153.1 (4) there is no reason to believe that the individual has 153.2 committed an act subsequent to the check that would disqualify 153.3 the individual for employment. 153.4 (c) A school hiring authority may, at its discretion, 153.5 request a criminal history background check from the 153.6 superintendent of the bureau of criminal apprehension on any 153.7 individual who seeks to enter a school or its grounds for the 153.8 purpose of serving as a school volunteer or working as an 153.9 independent contractor or student employee. In order for an 153.10 individual to enter a school or its grounds under this paragraph 153.11 when the school hiring authority elects to request a criminal 153.12 history background check on the individual, the individual first 153.13 must provide an executed criminal history consent form and a 153.14 money order, check, or other negotiable instrument payable to 153.15 the school district in an amount equal to the actual cost to the 153.16 bureau of criminal apprehension and the school district of 153.17 conducting the criminal history background check. 153.18 Notwithstanding section 299C.62, subdivision 1, the cost of the 153.19 criminal history background check under this paragraph is the 153.20 responsibility of the individual. 153.21 (d) For all nonstate residents who are offered employment 153.22 in a school, a school hiring authority shall request a criminal 153.23 history background check on such individuals from the 153.24 superintendent of the bureau of criminal apprehension and from 153.25 the government agency performing the same function in the 153.26 resident state or, if no government entity performs the same 153.27 function in the resident state, from the Federal Bureau of 153.28 Investigation. Such individuals must provide an executed 153.29 criminal history consent form and a money order, check, or other 153.30 negotiable instrument payable to the school hiring authority in 153.31 an amount equal to the actual cost to the government agencies 153.32 and the school district of conducting the criminal history 153.33 background check. Notwithstanding section 299C.62, subdivision 153.34 1, the cost of the criminal history background check under this 153.35 paragraph is the responsibility of the individual. 153.36 Sec. 22. Minnesota Statutes 1996, section 120.17, 154.1 subdivision 3, is amended to read: 154.2 Subd. 3. [RULES OF THESTATE BOARDCOMMISSIONER OF 154.3 CHILDREN, FAMILIES, AND LEARNING.] (a) Thestate154.4boardcommissioner of children, families, and learning shall 154.5 promulgate rules relative to qualifications of essential 154.6 personnel, courses of study, methods of instruction, pupil 154.7 eligibility, size of classes, rooms, equipment, supervision, 154.8 parent consultation, and any other rulesitthe commissioner 154.9 deems necessary for instruction of children with a disability. 154.10 These rules shall provide standards and procedures appropriate 154.11 for the implementation of and within the limitations of 154.12 subdivisions 3a and 3b. These rules shall also provide 154.13 standards for the discipline, control, management and protection 154.14 of children with a disability. Thestate boardcommissioner 154.15 shall not adopt rules for pupils served in level 1, 2, or 3, as 154.16 defined in Minnesota Rules, part 3525.2340, establishing either 154.17 case loads or the maximum number of pupils that may be assigned 154.18 to special education teachers. Thestate boardcommissioner, in 154.19 consultation with the departments of health and human services, 154.20 shall adopt permanent rules for instruction and services for 154.21 children under age five and their families. These rules are 154.22 binding on state and local education, health, and human services 154.23 agencies. Thestate boardcommissioner shall adopt rules to 154.24 determine eligibility for special education services. The rules 154.25 shall include procedures and standards by which to grant 154.26 variances for experimental eligibility criteria. Thestate154.27boardcommissioner shall, according to section 14.05, 154.28 subdivision 4, notify a district applying for a variance from 154.29 the rules within 45 calendar days of receiving the request 154.30 whether the request for the variance has been granted or 154.31 denied. If a request is denied, theboardcommissioner shall 154.32 specify the program standards used to evaluate the request and 154.33 the reasons for denying the request. 154.34 (b) The state's regulatory scheme should support schools by 154.35 assuring that all state special education rules adopted by the 154.36state board of educationcommissioner of children, families, and 155.1 learning result in one or more of the following outcomes: 155.2 (1) increased time available to teachers for educating 155.3 students through direct and indirect instruction; 155.4 (2) consistent and uniform access to effective education 155.5 programs for students with disabilities throughout the state; 155.6 (3) reduced inequalities, conflict, and court actions 155.7 related to the delivery of special education instruction and 155.8 services for students with disabilities; 155.9 (4) clear expectations for service providers and for 155.10 students with disabilities; 155.11 (5) increased accountability for all individuals and 155.12 agencies that provide instruction and other services to students 155.13 with disabilities; 155.14 (6) greater focus for the state and local resources 155.15 dedicated to educating students with disabilities; and 155.16 (7) clearer standards for evaluating the effectiveness of 155.17 education and support services for students with disabilities. 155.18 Sec. 23. Minnesota Statutes 1996, section 120.17, 155.19 subdivision 3b, is amended to read: 155.20 Subd. 3b. [PROCEDURES FOR DECISIONS.] Every district shall 155.21 utilize at least the following procedures for decisions 155.22 involving identification, assessment, and educational placement 155.23 of children with a disability: 155.24 (a) Parents and guardians shall receive prior written 155.25 notice of: 155.26 (1) any proposed formal educational assessment or proposed 155.27 denial of a formal educational assessment of their child; 155.28 (2) a proposed placement of their child in, transfer from 155.29 or to, or denial of placement in a special education program; or 155.30 (3) the proposed provision, addition, denial or removal of 155.31 special education services for their child; 155.32 (b) The district shall not proceed with the initial formal 155.33 assessment of a child, the initial placement of a child in a 155.34 special education program, or the initial provision of special 155.35 education services for a child without the prior written consent 155.36 of the child's parent or guardian. The refusal of a parent or 156.1 guardian to consent may be overridden by the decision in a 156.2 hearing held pursuant to clause (e) at the district's 156.3 initiative; 156.4 (c) Parents and guardians shall have an opportunity to meet 156.5 with appropriate district staff in at least one conciliation 156.6 conference, mediation, or other method of alternative dispute 156.7 resolution that the parties agree to, if they object to any 156.8 proposal of which they are notified pursuant to clause (a). The 156.9 conciliation process or other form of alternative dispute 156.10 resolution shall not be used to deny or delay a parent or 156.11 guardian's right to a due process hearing. If the parent or 156.12 guardian refuses efforts by the district to conciliate the 156.13 dispute with the school district, the requirement of an 156.14 opportunity for conciliation or other alternative dispute 156.15 resolution shall be deemed to be satisfied. Notwithstanding 156.16 other law, in any proceeding following a conciliation 156.17 conference, the school district must not offer a conciliation 156.18 conference memorandum into evidence, except for any portions 156.19 that describe the district's final proposed offer of service. 156.20 Otherwise, with respect to forms of dispute resolution, 156.21 mediation, or conciliation, Minnesota Rule of Evidence 408 156.22 applies. The department of children, families, and learning may 156.23 reimburse the districts or directly pay the costs of lay 156.24 advocates, not to exceed $150 per dispute, used in conjunction 156.25 with alternative dispute resolution. 156.26 (d) The commissioner shall establish a mediation process to 156.27 assist parents, school districts, or other parties to resolve 156.28 disputes arising out of the identification, assessment, or 156.29 educational placement of children with a disability. The 156.30 mediation process must be offered as an informal alternative to 156.31 the due process hearing provided under clause (e), but must not 156.32 be used to deny or postpone the opportunity of a parent or 156.33 guardian to obtain a due process hearing. 156.34 (e) Parents, guardians, and the district shall have an 156.35 opportunity to obtain an impartial due process hearing initiated 156.36 and conducted by and in the school district responsible for 157.1 assuring that an appropriate program is provided in accordance 157.2 with stateboardrules, if the parent or guardian continues to 157.3 object to: 157.4 (1) a proposed formal educational assessment or proposed 157.5 denial of a formal educational assessment of their child; 157.6 (2) the proposed placement of their child in, or transfer 157.7 of their child to a special education program; 157.8 (3) the proposed denial of placement of their child in a 157.9 special education program or the transfer of their child from a 157.10 special education program; 157.11 (4) the proposed provision or addition of special education 157.12 services for their child; or 157.13 (5) the proposed denial or removal of special education 157.14 services for their child. 157.15 Within five business days after the request for a hearing, 157.16 or as directed by the hearing officer, the objecting party shall 157.17 provide the other party with a brief written statement of 157.18 particulars of the objection, the reasons for the objection, and 157.19 the specific remedies sought. The other party shall provide the 157.20 objecting party with a written response to the statement of 157.21 objections within five business days of receipt of the statement. 157.22 The hearing shall take place before an impartial hearing 157.23 officer mutually agreed to by the school board and the parent or 157.24 guardian. Within four business days of the receipt of the 157.25 request for the hearing, if the parties have not agreed on the 157.26 hearing officer, the school board shall request the commissioner 157.27 to appoint a hearing officer. The school board shall include 157.28 with the request the name of the person requesting the hearing, 157.29 the name of the student, the attorneys involved, if any, and the 157.30 date the hearing request was received. The hearing officer 157.31 shall not be a school board member or employee of the school 157.32 district where the child resides or of the child's school 157.33 district of residence, an employee of any other public agency 157.34 involved in the education or care of the child, or any person 157.35 with a personal or professional interest which would conflict 157.36 with the person's objectivity at the hearing. A person who 158.1 otherwise qualifies as a hearing officer is not an employee of 158.2 the district solely because the person is paid by the district 158.3 to serve as a hearing officer. If the hearing officer requests 158.4 an independent educational assessment of a child, the cost of 158.5 the assessment shall be at district expense. The proceedings 158.6 shall be recorded and preserved, at the expense of the school 158.7 district, pending ultimate disposition of the action. 158.8 (f) The decision of the hearing officer pursuant to clause 158.9 (e) shall be rendered not more than 45 calendar days from the 158.10 date of the receipt of the request for the hearing, except that 158.11 hearing officers are encouraged to accelerate the timeline to 30 158.12 days for children birth through two whose needs change rapidly 158.13 and require quick resolution of complaints. A hearing officer 158.14 may not grant specific extensions of time beyond the 45-day 158.15 period unless requested by either party for good cause shown on 158.16 the record. The decision of the hearing officer shall be 158.17 binding on all parties unless appealed to the commissioner by 158.18 the parent; guardian; school board of the district where the 158.19 child resides pursuant to clause (g); and also in the case of 158.20 children birth through two, by the county board. 158.21 The local decision shall: 158.22 (1) be in writing; 158.23 (2) state the controlling facts upon which the decision is 158.24 made in sufficient detail to apprise the parties and the hearing 158.25 review officer of the basis and reason for the decision; and 158.26 (3) be based on the standards set forth in subdivision 3a 158.27 and the rules of thestate boardcommissioner of children, 158.28 families, and learning. 158.29 (g) Any local decision issued pursuant to clauses (e) and 158.30 (f) may be appealed to the commissioner within 30 calendar days 158.31 of receipt of that written decision, by the parent, guardian, or 158.32 the school board of the district responsible for assuring that 158.33 an appropriate program is provided in accordance with state 158.34boardrules. The appealing party shall note the specific parts 158.35 of the hearing decision being appealed. 158.36 If the decision is appealed, a written transcript of the 159.1 hearing shall be made by the school district and provided by the 159.2 district to the parties involved and the hearing review officer 159.3 within five calendar days of the filing of the appeal. The 159.4 hearing review officer shall conduct an appellate review and 159.5 issue a final independent decision based on an impartial review 159.6 of the local decision and the entire record within 30 calendar 159.7 days after the filing of the appeal. However, the hearing 159.8 review officer shall seek additional evidence if necessary and 159.9 may afford the parties an opportunity for written or oral 159.10 argument; provided any hearing held to seek additional evidence 159.11 shall be an impartial due process hearing but shall be deemed 159.12 not to be a contested case hearing for purposes of chapter 14. 159.13 The hearing review officer may grant specific extensions of time 159.14 beyond the 30-day period at the request of any party for good 159.15 cause shown on the record. 159.16 The final decision shall: 159.17 (1) be in writing; 159.18 (2) include findings and conclusions; and 159.19 (3) be based upon the standards set forth in subdivision 3a 159.20 and in the rules of thestate boardcommissioner of children, 159.21 families, and learning. 159.22 (h) The decision of the hearing review officer shall be 159.23 final unless appealed by the parent or guardian or school board 159.24 to the Minnesota court of appeals or federal district court as 159.25 provided by federal law. State judicial review shall be in 159.26 accordance with chapter 14. 159.27 (i) The commissioner of children, families, and learning 159.28 shall select an individual who has the qualifications enumerated 159.29 in this paragraph to serve as the hearing review officer: 159.30 (1) the individual must be knowledgeable and impartial; 159.31 (2) the individual must not have a personal interest in or 159.32 specific involvement with the student who is a party to the 159.33 hearing; 159.34 (3) the individual must not have been employed as an 159.35 administrator by the district that is a party to the hearing; 159.36 (4) the individual must not have been involved in the 160.1 selection of the administrators of the district that is a party 160.2 to the hearing; 160.3 (5) the individual must not have a personal, economic, or 160.4 professional interest in the outcome of the hearing other than 160.5 the proper administration of the federal and state laws, rules, 160.6 and policies; 160.7 (6) the individual must not have substantial involvement in 160.8 the development of a state or local policy or procedures that 160.9 are challenged in the appeal; 160.10 (7) the individual is not a current employee or board 160.11 member of a Minnesota public school district, education 160.12 district, intermediate unit or regional education agency, the 160.13 department of children, families, and learning, the state board160.14of education; and 160.15 (8) the individual is not a current employee or board 160.16 member of a disability advocacy organization or group. 160.17 (j) In all appeals, the parent or guardian of the pupil 160.18 with a disability or the district that is a party to the hearing 160.19 may challenge the impartiality or competence of the proposed 160.20 hearing review officer by applying to the hearing review officer. 160.21 (k) Pending the completion of proceedings pursuant to this 160.22 subdivision, unless the district and the parent or guardian of 160.23 the child agree otherwise, the child shall remain in the child's 160.24 current educational placement and shall not be denied initial 160.25 admission to school. 160.26 (l) The child's school district of residence, a resident 160.27 district, and providing district shall receive notice of and may 160.28 be a party to any hearings or appeals under this subdivision. 160.29 (m) A school district is not liable for harmless technical 160.30 violations of this subdivision or rules implementing this 160.31 subdivision if the school district can demonstrate on a 160.32 case-by-case basis that the violations did not harm the 160.33 student's educational progress or the parent or guardian's right 160.34 to notice, participation, or due process. 160.35 (n) Within ten calendar days after appointment, the hearing 160.36 officer shall schedule and hold a prehearing conference. At 161.1 that conference, or later, the hearing officer may take any 161.2 appropriate action that a court might take under Rule 16 of 161.3 Minnesota Rules of Civil Procedure including, but not limited 161.4 to, scheduling, jurisdiction, and listing witnesses including 161.5 expert witnesses. 161.6 (o) A hearing officer or hearing review officer appointed 161.7 under this subdivision shall be deemed to be an employee of the 161.8 state under section 3.732 for the purposes of section 3.736 only. 161.9 (p) In order to be eligible for selection, hearing officers 161.10 and hearing review officers shall participate in training and 161.11 follow procedures as designated by the commissioner. 161.12 (q) The hearing officer may admit all evidence which 161.13 possesses probative value, including hearsay, if it is the type 161.14 of evidence on which reasonable, prudent persons are accustomed 161.15 to rely in the conduct of their serious affairs. The hearing 161.16 officer shall give effect to the rules of privilege recognized 161.17 by law. Evidence which is incompetent, irrelevant, immaterial, 161.18 or unduly repetitious shall be excluded. 161.19 Sec. 24. Minnesota Statutes 1996, section 120.17, 161.20 subdivision 7a, is amended to read: 161.21 Subd. 7a. [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 161.22 Responsibility for special instruction and services for a 161.23 visually disabled or hearing impaired child attending the 161.24 Minnesota state academy for the deaf or the Minnesota state 161.25 academy for the blind shall be determined in the following 161.26 manner: 161.27 (a) The legal residence of the child shall be the school 161.28 district in which the child's parent or guardian resides. 161.29 (b) When it is determined pursuant to section 128A.05, 161.30 subdivision 1 or 2, that the child is entitled to attend either 161.31 school, thestateboard of the Faribault academies shall provide 161.32 the appropriate educational program for the child. Thestate161.33 board of the Faribault academies shall make a tuition charge to 161.34 the child's district of residence for the cost of providing the 161.35 program. The amount of tuition charged shall not exceed the 161.36 basic revenue of the district for that child, for the amount of 162.1 time the child is in the program. For purposes of this 162.2 subdivision, "basic revenue" has the meaning given it in section 162.3 124A.22, subdivision 2. The district of the child's residence 162.4 shall pay the tuition and may claim general education aid for 162.5 the child. Tuition received by thestateboard of the Faribault 162.6 academies, except for tuition received under clause (c), shall 162.7 be deposited in the state treasury as provided in clause (g). 162.8 (c) In addition to the tuition charge allowed in clause 162.9 (b), the academies may charge the child's district of residence 162.10 for the academy's unreimbursed cost of providing an 162.11 instructional aide assigned to that child, if that aide is 162.12 required by the child's individual education plan. Tuition 162.13 received under this clause must be used by the academies to 162.14 provide the required service. 162.15 (d) When it is determined that the child can benefit from 162.16 public school enrollment but that the child should also remain 162.17 in attendance at the applicable school, the school district 162.18 where the institution is located shall provide an appropriate 162.19 educational program for the child and shall make a tuition 162.20 charge to thestateboard of the Faribault academies for the 162.21 actual cost of providing the program, less any amount of aid 162.22 received pursuant to section 124.32. Thestateboard of the 162.23 Faribault academies shall pay the tuition and other program 162.24 costs including the unreimbursed transportation costs. Aids for 162.25 children with a disability shall be paid to the district 162.26 providing the special instruction and services. Special 162.27 transportation shall be provided by the district providing the 162.28 educational program and the state shall reimburse such district 162.29 within the limits provided by law. 162.30 (e) Notwithstanding the provisions of clauses (b) and (d), 162.31 thestateboard of the Faribault academies may agree to make a 162.32 tuition charge for less than the amount specified in clause (b) 162.33 for pupils attending the applicable school who are residents of 162.34 the district where the institution is located and who do not 162.35 board at the institution, if that district agrees to make a 162.36 tuition charge to thestateboard of the Faribault academies for 163.1 less than the amount specified in clause (d) for providing 163.2 appropriate educational programs to pupils attending the 163.3 applicable school. 163.4 (f) Notwithstanding the provisions of clauses (b) and (d), 163.5 thestateboard of the Faribault academies may agree to supply 163.6 staff from the Minnesota state academy for the deaf and the 163.7 Minnesota state academy for the blind to participate in the 163.8 programs provided by the district where the institutions are 163.9 located when the programs are provided to students in attendance 163.10 at the state schools. 163.11 (g) On May 1 of each year, thestateboard of the Faribault 163.12 academies shall count the actual number of Minnesota resident 163.13 kindergarten and elementary students and the actual number of 163.14 Minnesota resident secondary students enrolled and receiving 163.15 education services at the Minnesota state academy for the deaf 163.16 and the Minnesota state academy for the blind. Thestateboard 163.17 of the Faribault academies shall deposit in the state treasury 163.18 an amount equal to all tuition received less: 163.19 (1) the total number of students on May 1 less 175, times 163.20 the ratio of the number of kindergarten and elementary students 163.21 to the total number of students on May 1, times the general 163.22 education formula allowance; plus 163.23 (2) the total number of students on May 1 less 175, times 163.24 the ratio of the number of secondary students on May 1 to the 163.25 total number of students on May 1, times 1.3, times the general 163.26 education formula allowance. 163.27 (h) The sum provided by the calculation in clause (g), 163.28 subclauses (1) and (2), must be deposited in the state treasury 163.29 and credited to the general operation account of the academy for 163.30 the deaf and the academy for the blind. 163.31 (i) There is annually appropriated to the department of 163.32 children, families, and learning for the Faribault academies the 163.33 tuition amounts received and credited to the general operation 163.34 account of the academies under this section. A balance in an 163.35 appropriation under this paragraph does not cancel but is 163.36 available in successive fiscal years. 164.1 Sec. 25. Minnesota Statutes 1996, section 120.66, 164.2 subdivision 1, is amended to read: 164.3 Subdivision 1. Thestate board of educationcommissioner 164.4 of children, families, and learning shall: 164.5 (1) Promulgate rules necessary to the operation of sections 164.6 120.59 to 120.67; 164.7 (2) Cooperate with and provide supervision of flexible 164.8 learning year programs to determine compliance with the 164.9 provisions of sections 120.59 to 120.67, thestate board164.10 department standards and qualifications, and the proposed 164.11 program as submitted and approved; 164.12 (3) Provide any necessary adjustments of (a) attendance and 164.13 membership computations and (b) the dates and percentages of 164.14 apportionment of state aids; 164.15 (4) Consistent with the definition of "average daily 164.16 membership" in section 124.17, subdivision 2, furnish the board 164.17 of a district implementing a flexible learning year program with 164.18 a formula for computing average daily membership. This formula 164.19 shall be computed so that tax levies to be made by the district, 164.20 state aids to be received by the district, and any and all other 164.21 formulas based upon average daily membership are not affected 164.22 solely as a result of adopting this plan of instruction. 164.23 Sec. 26. Minnesota Statutes 1996, section 120.66, 164.24 subdivision 2, is amended to read: 164.25 Subd. 2. Sections 120.59 to 120.67 shall not be construed 164.26 to authorize thestate boardcommissioner to require the 164.27 establishment of a flexible learning year program in any 164.28 district in which the board has not voted to establish, 164.29 maintain, and operate such a program. 164.30 Sec. 27. Minnesota Statutes 1996, section 120.73, 164.31 subdivision 1, is amended to read: 164.32 Subdivision 1. A school board is authorized to require 164.33 payment of fees in the following areas: 164.34 (a) in any program where the resultant product, in excess 164.35 of minimum requirements and at the pupil's option, becomes the 164.36 personal property of the pupil; 165.1 (b) admission fees or charges for extra curricular 165.2 activities, where attendance is optional and where the admission 165.3 fees or charges a student must pay to attend or participate in 165.4 an extracurricular activity is the same for all students, 165.5 regardless of whether the student is enrolled in a public or 165.6 home school; 165.7 (c) a security deposit for the return of materials, 165.8 supplies, or equipment; 165.9 (d) personal physical education and athletic equipment and 165.10 apparel, although any pupil may personally provide it if it 165.11 meets reasonable requirements and standards relating to health 165.12 and safety established by the school board; 165.13 (e) items of personal use or products which a student has 165.14 an option to purchase such as student publications, class rings, 165.15 annuals, and graduation announcements; 165.16 (f) fees specifically permitted by any other statute, 165.17 including but not limited to section 171.04, subdivision 1, 165.18 clause (1); 165.19 (g) field trips considered supplementary to a district 165.20 educational program; 165.21 (h) any authorized voluntary student health and accident 165.22 benefit plan; 165.23 (i) for the use of musical instruments owned or rented by 165.24 the district, a reasonable rental fee not to exceed either the 165.25 rental cost to the district or the annual depreciation plus the 165.26 actual annual maintenance cost for each instrument; 165.27 (j) transportation of pupils to and from extra curricular 165.28 activities conducted at locations other than school, where 165.29 attendance is optional; 165.30 (k) transportation of pupils to and from school for which 165.31 aid for fiscal year 1996 is not authorized under Minnesota 165.32 Statutes 1994, section 124.223, subdivision 1, and for which 165.33 levy for fiscal year 1996 is not authorized under Minnesota 165.34 Statutes 1994, section 124.226, subdivision 5, if a district 165.35 charging fees for transportation of pupils establishes 165.36 guidelines for that transportation to ensure that no pupil is 166.1 denied transportation solely because of inability to pay; 166.2 (l) motorcycle classroom education courses conducted 166.3 outside of regular school hours; provided the charge shall not 166.4 exceed the actual cost of these courses to the school district; 166.5 (m) transportation to and from post-secondary institutions 166.6 for pupils enrolled under the post-secondary enrollment options 166.7 program under section 123.39, subdivision 16. Fees collected 166.8 for this service must be reasonable and shall be used to reduce 166.9 the cost of operating the route. Families who qualify for 166.10 mileage reimbursement under section 123.3514, subdivision 8, may 166.11 use their state mileage reimbursement to pay this fee. If no 166.12 fee is charged, districts shall allocate costs based on the 166.13 number of pupils riding the route; and 166.14 (n) fees or tuition for instruction qualifying as an 166.15 education-related expense according to section 290.0674, 166.16 subdivision 1, clause (1). 166.17 Sec. 28. Minnesota Statutes 1996, section 120.74, 166.18 subdivision 1, is amended to read: 166.19 Subdivision 1. (a) A school board is not authorized to 166.20 charge fees in the following areas: 166.21 (1) textbooks, workbooks, art materials, laboratory 166.22 supplies, towels; 166.23 (2) supplies necessary for participation in any 166.24 instructional course except as authorized in sections 120.73 and 166.25 120.75; 166.26 (3) field trips which are required as a part of a basic 166.27 education program or course; 166.28 (4) graduation caps, gowns, any specific form of dress 166.29 necessary for any educational program, and diplomas; 166.30 (5) instructional costs for necessary school personnel 166.31 employed in any course or educational program required for 166.32 graduation; 166.33 (6) library books required to be utilized for any 166.34 educational course or program; 166.35 (7) admission fees, dues, or fees for any activity the 166.36 pupil is required to attend; 167.1 (8) any admission or examination cost for any required 167.2 educational course or program, except as authorized in section 167.3 120.73, subdivision 1, clause (n); 167.4 (9) locker rentals; 167.5 (10) transportation of pupils (i) for which state 167.6 transportation aid for fiscal year 1996 is authorized pursuant 167.7 to Minnesota Statutes 1994, section 124.223, or (ii) for which a 167.8 levy for fiscal year 1996 is authorized under Minnesota Statutes 167.9 1994, section 124.226, subdivision 5. 167.10 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 167.11 school board may charge fees for textbooks, workbooks, and 167.12 library books, lost or destroyed by students. The board must 167.13 annually notify parents or guardians and students about its 167.14 policy to charge a fee under this paragraph. 167.15 Sec. 29. Minnesota Statutes 1996, section 121.02, 167.16 subdivision 1, is amended to read: 167.17 Subdivision 1. [DEPARTMENT.] A state department of 167.18 children, families, and learning is hereby created which shall 167.19 be maintained under the direction ofa state board of education167.20composed of nine representative citizens of the state, at least167.21one of whom shall reside in each congressional district in the167.22state.167.23Of the nine representative citizens of the state who are167.24appointed to the state board of education not less than three167.25members thereof shall previously thereto have served as an167.26elected member of a board of education of a school district167.27however organized.167.28The members of the state board shall be appointed by the167.29governor, with the advice and consent of the senate. One member167.30shall be chosen annually as president, but no member shall serve167.31as president more than three consecutive years. The state board167.32shall hold its annual meeting in August. It shall hold meetings167.33on dates and at places as it designates. No member shall hold167.34any public office, or represent or be employed by any board of167.35education or school district, public or private, and shall not167.36voluntarily have any personal financial interest in any contract168.1with a board of education or school district, or be engaged in168.2any capacity where a conflict of interest may arisethe 168.3 commissioner of children, families, and learning. 168.4 Sec. 30. Minnesota Statutes 1996, section 121.11, 168.5 subdivision 7d, is amended to read: 168.6 Subd. 7d. [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, 168.7 AND LICENSURE RULES.] (a)The state board mayBy January 10, 168.8 1999, the commissioner shall make rules relating to 168.9 desegregation/integration,and inclusive education, and168.10licensure of school personnel not licensed by the board of168.11teaching. 168.12 (b) In adopting a rule related to school 168.13 desegregation/integration, thestate boardcommissioner shall 168.14 address the need for equal educational opportunities for all 168.15 students and racial balance as defined by the state board. 168.16 Sec. 31. Minnesota Statutes 1997 Supplement, section 168.17 121.1113, subdivision 1, is amended to read: 168.18 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 168.19 with advice from experts with appropriate technical 168.20 qualifications and experience and stakeholders, shall include in 168.21 the comprehensive assessment system, for each grade level to be 168.22 tested, a single statewide norm-referenced or 168.23 criterion-referenced test, or a combination of a norm-referenced 168.24 and a criterion-referenced test, which shall be highly 168.25 correlated with the state's graduation standards and 168.26 administered annually to all students in the third, fifth, and 168.27 eighth grades. The commissioner shall establish one or more 168.28 months during which schools shall administer the tests to 168.29 students each school year. The Minnesota basic skills tests in 168.30 reading and mathematics shall fulfill students' eighth grade 168.31 testing requirements. 168.32 (b) In addition, at the secondary level, districts shall 168.33 assess student performance in all required learning areas and 168.34 selected required standards within each area of the profiles of 168.35 learning. The testing instruments and testing process shall be 168.36 determined by the commissioner. The results shall be aggregated 169.1 at the site and district level. The testing shall be 169.2 administered beginning in the 1999-2000 school year and 169.3 thereafter. 169.4 (c) The comprehensive assessment system shall include an 169.5 evaluation of school site and school district performance levels 169.6 during the 1997-1998 school year and thereafter using an 169.7 established performance baseline developed from students' test 169.8 scores under this section that records, at a minimum, students' 169.9 unweighted mean test scores in each tested subject, a second 169.10 performance baseline that reports, at a minimum, the same 169.11 unweighted mean test scores of only those students enrolled in 169.12 the school by January 1 of the previous school year, and a third 169.13 performance baseline that reports the same unweighted test 169.14 scores of all students except those students receiving limited 169.15 English proficiency instruction. The evaluation also shall 169.16 record separately, in proximity to the performance baselines, 169.17 the percentages of students who are eligible to receive a free 169.18 or reduced price school meal, demonstrate limited English 169.19 proficiency, or are eligible to receive special education 169.20 services. 169.21 (d) In addition to the testing and reporting requirements 169.22 under paragraphs (a), (b), and (c), the commissioner, in169.23consultation with the state board of education,shall include 169.24 the following components in the statewide educational 169.25 accountability and public reporting system: 169.26 (1) uniform statewide testing of all third, fifth, eighth, 169.27 and post-eighth grade students with exemptions, only with parent 169.28 or guardian approval, from the testing requirement only for 169.29 those very few students for whom the student's individual 169.30 education plan team under section 120.17, subdivision 2, 169.31 determines that the student is incapable of taking a statewide 169.32 test, or a limited English proficiency student under section 169.33 126.262, subdivision 2, if the student has been in the United 169.34 States for fewer than 12 months and for whom special language 169.35 barriers exist, such as the student's native language does not 169.36 have a written form or the district does not have access to 170.1 appropriate interpreter services for the student's native 170.2 language; 170.3 (2) educational indicators that can be aggregated and 170.4 compared across school districts and across time on a statewide 170.5 basis; 170.6 (3) students' scores on the American College Test; 170.7 (4) participation in the National Assessment of Educational 170.8 Progress so that the state can benchmark its performance against 170.9 the nation and other states, and, where possible, against other 170.10 countries, and contribute to the national effort to monitor 170.11 achievement; and 170.12 (5) basic skills and advanced competencies connecting 170.13 teaching and learning to high academic standards, assessment, 170.14 and transitions to citizenship and employment. 170.15 (e) Districts must report exemptions under paragraph (d), 170.16 clause (1), to the commissioner consistent with a format 170.17 provided by the commissioner. 170.18 Sec. 32. Minnesota Statutes 1996, section 121.1115, 170.19 subdivision 1, is amended to read: 170.20 Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 170.21 REPORTING.]Consistent with the state board of education process170.22to adopt a results-oriented graduation rule under section170.23121.11, subdivision 7c, the state board of education andThe 170.24 department of children, families, and learning, in consultation 170.25 with education and other system stakeholders, shall establish a 170.26 coordinated and comprehensive system of educational 170.27 accountability and public reporting that promotes higher 170.28 academic achievement. 170.29 Sec. 33. Minnesota Statutes 1996, section 121.14, is 170.30 amended to read: 170.31 121.14 [RECOMMENDATIONS; BUDGET.] 170.32 Thestate board and thecommissioner of children, families, 170.33 and learning shall recommend to the governor and legislature 170.34 such modification and unification of laws relating to the state 170.35 system of education as shall make those laws more readily 170.36 understood and more effective in execution. The commissioner of 171.1 children, families, and learning shall prepare a biennial 171.2 education budget which shall be submitted to the governor and 171.3 legislature, such budget to contain a complete statement of 171.4 finances pertaining to the maintenance of the state department 171.5 and to the distribution of state aid. 171.6 Sec. 34. Minnesota Statutes 1996, section 121.148, 171.7 subdivision 3, is amended to read: 171.8 Subd. 3. [NEGATIVE REVIEW AND COMMENT.] (a) If the 171.9 commissioner submits a negative review and comment for a 171.10 proposal according to section 121.15, the following steps must 171.11 be taken: 171.12 (1) the commissioner must notify the school board of the 171.13 proposed negative review and comment and schedule a public 171.14 meeting within 60 days of the notification within that school 171.15 district to discuss the proposed negative review and comment on 171.16 the school facility; and 171.17 (2) the school board shall appoint an advisory task force 171.18 of up to five members to advise the school board and the 171.19 commissioner on the advantages, disadvantages, and alternatives 171.20 to the proposed facility at the public meeting. One member of 171.21 the advisory task force must also be a member of the county 171.22 facilities group. 171.23 (b) After attending the public meeting, the commissioner 171.24 shall reconsider the proposal. If the commissioner submits a 171.25 negative review and comment, the school board may appeal that 171.26 decisionto the state board of educationunder chapter 14.The171.27state board of education may either uphold the commissioner's171.28negative review and comment or instruct the commissioner to171.29submit a positive or unfavorable review and comment on the171.30proposed facility.171.31 (c) A school board may not proceed with construction ifthe171.32state board of education upholdsthe commissioner's negative 171.33 review and comment is upheld or if the commissioner's negative 171.34 review and comment is not appealed. 171.35 Sec. 35. Minnesota Statutes 1996, section 121.16, is 171.36 amended by adding a subdivision to read: 172.1 Subd. 4. [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The 172.2 commissioner of children, families, and learning shall prepare a 172.3 uniform system of records for public schools and require reports 172.4 from superintendents and principals of schools, teachers, school 172.5 officers, and the chief officers of public and other educational 172.6 institutions to give such facts as it may deem of public value. 172.7 All reports required of school districts by the commissioner 172.8 shall be in conformance with the uniform financial accounting 172.9 and reporting system. With the cooperation of the state 172.10 auditor, the commissioner shall establish and carry into effect 172.11 a uniform system of accounting by public school officers and 172.12 shall have authority to supervise and examine the accounts and 172.13 other records of all public schools. 172.14 Sec. 36. Minnesota Statutes 1996, section 121.16, is 172.15 amended by adding a subdivision to read: 172.16 Subd. 5. [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 172.17 The commissioner of children, families, and learning shall adopt 172.18 goals for and exercise general supervision over public schools 172.19 and public educational agencies in the state, classify and 172.20 standardize public elementary and secondary schools, and prepare 172.21 for them outlines and suggested courses of study. The 172.22 commissioner shall develop a plan to attain the adopted goals. 172.23 The commissioner may recognize educational accrediting agencies 172.24 for the sole purposes of sections 120.101, 120.102, and 120.103. 172.25 Sec. 37. Minnesota Statutes 1996, section 121.16, is 172.26 amended by adding a subdivision to read: 172.27 Subd. 6. [ADMINISTRATIVE RULES.] The commissioner may 172.28 adopt new rules and amend them or amend any existing rules only 172.29 under specific authority. The commissioner may repeal any 172.30 existing rules. Notwithstanding the provisions of section 172.31 14.05, subdivision 4, the commissioner may grant a variance to 172.32 rules adopted by the commissioner upon application by a school 172.33 district for purposes of implementing experimental programs in 172.34 learning or school management. This subdivision shall not 172.35 prohibit the commissioner from making technical changes or 172.36 corrections to adopted rules. 173.1 Sec. 38. Minnesota Statutes 1996, section 121.16, is 173.2 amended by adding a subdivision to read: 173.3 Subd. 7. [LICENSURE RULES.] The commissioner may make 173.4 rules relating to licensure of school personnel not licensed by 173.5 the board of teaching. 173.6 Sec. 39. Minnesota Statutes 1996, section 121.16, is 173.7 amended by adding a subdivision to read: 173.8 Subd. 8. [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 173.9 commissioner may amend rules to reflect changes in the national 173.10 minimum standard score for passing the general education 173.11 development (GED) tests. 173.12 Sec. 40. Minnesota Statutes 1996, section 121.16, is 173.13 amended by adding a subdivision to read: 173.14 Subd. 9. [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 173.15 request of any superintendent of any public or private school 173.16 teaching high school courses in the state, the commissioner 173.17 shall designate or prepare uniform forms for state examinations 173.18 in each high school subject during the month of May of each 173.19 year; the request shall be in writing and delivered to the 173.20 commissioner before January 1 of that year. 173.21 Sec. 41. Minnesota Statutes 1996, section 121.16, is 173.22 amended by adding a subdivision to read: 173.23 Subd. 10. [EVENING SCHOOLS.] The commissioner shall 173.24 exercise general supervision over the public evening schools, 173.25 adult education programs, and summer programs. 173.26 Sec. 42. Minnesota Statutes 1996, section 121.16, is 173.27 amended by adding a subdivision to read: 173.28 Subd. 11. [TEACHER RULE VARIANCES.] Notwithstanding any 173.29 law to the contrary, and only upon receiving the agreement of 173.30 the state board of teaching, the commissioner of children, 173.31 families, and learning may grant a variance to rules governing 173.32 licensure of teachers for those teachers licensed by the board 173.33 of teaching. The commissioner may grant a variance, without the 173.34 agreement of the board of teaching, to rules adopted by the 173.35 commissioner governing licensure of teachers for those teachers 173.36 the commissioner licenses. 174.1 Sec. 43. Minnesota Statutes 1996, section 121.16, is 174.2 amended by adding a subdivision to read: 174.3 Subd. 12. [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 174.4 commissioner of finance shall establish for the commissioner of 174.5 children, families, and learning a revolving fund for deposit of 174.6 storage and handling charges paid by recipients of donated foods 174.7 shipped by the school lunch section of the department of 174.8 children, families, and learning. These funds are to be used 174.9 only to pay storage and related charges as they are incurred for 174.10 United States Department of Agriculture foods. 174.11 The commissioner of finance shall also establish a 174.12 revolving fund for the department of children, families, and 174.13 learning to deposit charges paid by recipients of processed 174.14 commodities and for any authorized appropriation transfers for 174.15 the purpose of this subdivision. These funds are to be used 174.16 only to pay for commodity processing and related charges as they 174.17 are incurred using United States Department of Agriculture 174.18 donated commodities. 174.19 Sec. 44. Minnesota Statutes 1996, section 121.1601, 174.20 subdivision 2, is amended to read: 174.21 Subd. 2. [COORDINATION.]The commissioner shall coordinate174.22the office activities under subdivision 1 with new or existing174.23department and state board of education efforts to accomplish174.24school desegregation/integration.The commissioner may request 174.25 information or assistance from, or contract with, any state or 174.26 local agency or officer, local unit of government, or recognized 174.27 expert to assist the commissioner in performing the activities 174.28 described in subdivision 1. 174.29 Sec. 45. Minnesota Statutes 1996, section 121.612, 174.30 subdivision 2, is amended to read: 174.31 Subd. 2. [CREATION OF FOUNDATION.] There is created the 174.32 Minnesota academic excellence foundation. The purpose of the 174.33 foundation shall be to promote academic excellence in Minnesota 174.34 public and nonpublic schools and communities through 174.35 public-private partnerships. The foundation shall be a 174.36 nonprofit organization. The board of directors of the 175.1 foundation and foundation activities are under the direction of 175.2 thestate board of educationcommissioner of children, families, 175.3 and learning. 175.4 Sec. 46. Minnesota Statutes 1996, section 121.612, 175.5 subdivision 3, is amended to read: 175.6 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 175.7 the foundation shall consist of the commissioner of children, 175.8 families, and learning,a member of the state board of education175.9selected by the state boardwho shall serve as chair and 20 175.10 members to be appointed by the governor. Of the 20 members 175.11 appointed by the governor, eight shall represent a variety of 175.12 education groups and 12 shall represent a variety of business 175.13 groups. The commissioner of children, families, and learning 175.14 shall serve as secretary for the board of directors and provide 175.15 administrative support to the foundation. An executive 175.16 committee of the foundation board composed of the board officers 175.17 and chairs of board committees, may only advise and make 175.18 recommendations to the foundation board. 175.19 Sec. 47. Minnesota Statutes 1996, section 121.612, 175.20 subdivision 6, is amended to read: 175.21 Subd. 6. [CONTRACTS.] The foundation board shall review 175.22 and approve each contract of the board. Each contract of the 175.23 foundation board shall be subject to the same review and 175.24 approval procedures as a contract of thestate board of175.25educationcommissioner of children, families, and learning. 175.26 Sec. 48. Minnesota Statutes 1996, section 121.612, 175.27 subdivision 7, is amended to read: 175.28 Subd. 7. [FOUNDATION STAFF.] (a) Thestate board175.29 commissioner shall appoint the executive director and other 175.30 staff who shall perform duties and have responsibilities solely 175.31 related to the foundation. 175.32 (b) As part of the annual plan of work, the foundation, 175.33 under the direction of thestate boardcommissioner, may appoint 175.34 up to three employees. The employees appointed under this 175.35 paragraph are not state employees under chapter 43A, but are 175.36 covered under section 3.736. At the foundation board's 176.1 discretion, the employees may participate in the state health 176.2 and state insurance plans for employees in unclassified 176.3 service. The employees shall be supervised by the executive 176.4 director. 176.5 Sec. 49. Minnesota Statutes 1996, section 121.612, 176.6 subdivision 9, is amended to read: 176.7 Subd. 9. [REPORT.] The board of directors of the 176.8 foundation shall submit an annual report to thestate board of176.9educationcommissioner of children, families, and learning on 176.10 the progress of its activities. The annual report shall contain 176.11 a financial report for the preceding year, including all 176.12 receipts and expenditures of the foundation. 176.13 Sec. 50. Minnesota Statutes 1997 Supplement, section 176.14 121.615, subdivision 2, is amended to read: 176.15 Subd. 2. [CREATION OF FOUNDATION.] There is created the 176.16 Minnesota school-to-work student organization foundation. The 176.17 purpose of the foundation shall be to promote vocational student 176.18 organizations and applied leadership opportunities in Minnesota 176.19 public and nonpublic schools through public-private 176.20 partnerships. The foundation shall be a nonprofit 176.21 organization. The board of directors of the foundation and 176.22 activities of the foundation are under the direction of the 176.23state board of educationcommissioner of children, families, and 176.24 learning. 176.25 Sec. 51. Minnesota Statutes 1997 Supplement, section 176.26 121.615, subdivision 6, is amended to read: 176.27 Subd. 6. [CONTRACTS.] The foundation board shall review 176.28 and approve each contract of the board. Each contract of the 176.29 foundation board shall be subject to the same review and 176.30 approval procedures as a contract of thestate board of176.31educationcommissioner of children, families, and learning. 176.32 Sec. 52. Minnesota Statutes 1997 Supplement, section 176.33 121.615, subdivision 7, is amended to read: 176.34 Subd. 7. [FOUNDATION STAFF.] Thestate board of176.35educationcommissioner of children, families, and learning shall 176.36 appoint the executive director of the foundation from three 177.1 candidates nominated and submitted by the foundation board of 177.2 directors and, as necessary, other staff who shall perform 177.3 duties and have responsibilities solely related to the 177.4 foundation. The employees appointed are not state employees 177.5 under chapter 43A, but are covered under section 3.736. The 177.6 employees may participate in the state health and state 177.7 insurance plans for employees in unclassified service. The 177.8 employees shall be supervised by the executive director. 177.9 The commissioner shall appoint from the office of lifework 177.10 development a liaison to the foundation board. 177.11 Sec. 53. Minnesota Statutes 1997 Supplement, section 177.12 121.615, subdivision 10, is amended to read: 177.13 Subd. 10. [REPORT.] The board of directors of the 177.14 foundation shall submit an annual report on the progress of its 177.15 activities to thestate board of educationcommissioner of 177.16 children, families, and learning and to the board of trustees of 177.17 the Minnesota state colleges and universities. The annual 177.18 report shall contain a financial report for the preceding year. 177.19 The foundation shall submit a biennium report to the legislature 177.20 before February 15, in the odd-numbered year. 177.21 Sec. 54. Minnesota Statutes 1996, section 121.932, 177.22 subdivision 5, is amended to read: 177.23 Subd. 5. [ESSENTIAL DATA.] The department shall maintain a 177.24 list of essential data elements which must be recorded and 177.25 stored about each pupil, licensed and nonlicensed staff member, 177.26 and educational program. Each school district may ask for a 177.27 student's social security number as part of the basic enrollment 177.28 for the sole purpose of monitoring eligibility of students for 177.29 free or reduced lunch. The request must comply with the notice 177.30 requirements of section 13.04, subdivision 2, and must also 177.31 notify the parent or legal guardian and student that they are 177.32 not required to provide the social security number, but that if 177.33 it is provided it will be used to determine whether the student 177.34 is eligible for a free or reduced lunch. If the social security 177.35 number is provided, it must be included as part of the essential 177.36 data elements. Each school district must provide the essential 178.1 data to the department in the form and format prescribed by the 178.2 department. 178.3 Sec. 55. Minnesota Statutes 1996, section 122.23, 178.4 subdivision 2b, is amended to read: 178.5 Subd. 2b. [ORDERLY REDUCTION PLAN.] As part of the 178.6 resolution required by subdivision 2, the school board must 178.7 prepare a plan for the orderly reduction of the membership of 178.8 the board to six or seven members and a plan for the 178.9 establishment or dissolution of election districts. The plan 178.10 may shorten any or all terms of incumbent board members to 178.11 achieve the orderly reduction. The plan must be submitted to 178.12 the secretary of state for review and comment. 178.13 Sec. 56. Minnesota Statutes 1996, section 122.23, 178.14 subdivision 6, is amended to read: 178.15 Subd. 6. The commissioner shall, upon receipt of a plat, 178.16 forthwith examine it and approve, modify or reject it. The 178.17 commissioner shall also approve or reject any proposal contained 178.18 in the resolution or petition regarding the disposition of the 178.19 bonded debt of the component districts. If the plat shows the 178.20 boundaries of proposed separate election districts and if the 178.21 commissioner modifies the plat, the commissioner shall also 178.22 modify the boundaries of the proposed separate election 178.23 districts. The commissioner shall conduct ahearingpublic 178.24 meeting at the nearest county seat in the area upon reasonable 178.25 notice to the affected districts and county boards if requested 178.26 within 20 days after submission of the plat.Such a hearingThe 178.27 public meeting may be requested by the board of any affected 178.28 district, a county board of commissioners, or the petition of 20 178.29 resident voters living within the area proposed for 178.30 consolidation. The commissioner shall endorse on the plat 178.31 action regarding any proposal for the disposition of the bonded 178.32 debt of component districts and the reasons for these actions 178.33 andwithinafter a minimum of 20 days, but no more than 60 days 178.34 of the date of the receipt of the plat, the commissioner shall 178.35 return it to the county auditor who submitted it. The 178.36 commissioner shall furnish a copy of that plat, and the 179.1 supporting statement and its endorsement to the auditor of each 179.2 county containing any land area of the proposed new district. 179.3 If land area of a particular county was included in the plat, as 179.4 submitted by the county auditor, and all of such land area is 179.5 excluded in the plat as modified and approved, the commissioner 179.6 shall also furnish a copy of the modified plat, supporting 179.7 statement, and any endorsement to the auditor of such county. 179.8 Sec. 57. Minnesota Statutes 1996, section 123.34, 179.9 subdivision 9, is amended to read: 179.10 Subd. 9. [SUPERINTENDENT.] All districts maintaining a 179.11 classified secondary school shall employ a superintendent who 179.12 shall be an ex officio nonvoting member of the school board. 179.13 The authority for selection and employment of a superintendent 179.14 shall be vested in the school board in all cases. An individual 179.15 employed by a school board as a superintendent shall have an 179.16 initial employment contract for a period of time no longer than 179.17 three years from the date of employment. Any subsequent 179.18 employment contract must not exceed a period of three years. A 179.19 school board, at its discretion, may or may not renew an 179.20 employment contract. A school board shall not, by action or 179.21 inaction, extend the duration of an existing employment 179.22 contract. Beginning 365 days prior to the expiration date of an 179.23 existing employment contract, a school board may negotiate and 179.24 enter into a subsequent employment contract to take effect upon 179.25 the expiration of the existing contract. A subsequent contract 179.26 shall be contingent upon the employee completing the terms of an 179.27 existing contract. If a contract between a school board and a 179.28 superintendent is terminated prior to the date specified in the 179.29 contract, the school board may not enter into another 179.30 superintendent contract with that same individual that has a 179.31 term that extends beyond the date specified in the terminated 179.32 contract. A school board may terminate a superintendent during 179.33 the term of an employment contract for any of the grounds 179.34 specified in section 125.12, subdivision 6 or 8. A 179.35 superintendent shall not rely upon an employment contract with a 179.36 school board to assert any other continuing contract rights in 180.1 the position of superintendent under section 125.12. 180.2 Notwithstanding the provisions of sections 122.532, 122.541, 180.3 125.12, subdivision 6a or 6b, or any other law to the contrary, 180.4 no individual shall have a right to employment as a 180.5 superintendent based on order of employment in any district. If 180.6 two or more school districts enter into an agreement for the 180.7 purchase or sharing of the services of a superintendent, the 180.8 contracting districts have the absolute right to select one of 180.9 the individuals employed to serve as superintendent in one of 180.10 the contracting districts and no individual has a right to 180.11 employment as the superintendent to provide all or part of the 180.12 services based on order of employment in a contracting district. 180.13 The superintendent of a district shall perform the following: 180.14 (1) visit and supervise the schools in the district, report 180.15 and make recommendations about their condition when advisable or 180.16 on request by the board; 180.17 (2) recommend to the board employment and dismissal of 180.18 teachers; 180.19 (3) superintend school grading practices and examinations 180.20 for promotions; 180.21 (4) make reports required by the commissioner of children, 180.22 families, and learning;and180.23 (5) by January 10, submit an annual report to the 180.24 commissioner in a manner prescribed by the commissioner, in 180.25 consultation with school districts, identifying the amount of 180.26 funding that the district requires to achieve a 90 percent 180.27 student passage rate on the basic standards test taken in the 180.28 eighth grade, and how much the district is cross-subsidizing 180.29 programs with special education, compensatory, and general 180.30 education revenue; and 180.31 (6) perform other duties prescribed by the board. 180.32 Sec. 58. Minnesota Statutes 1996, section 123.35, 180.33 subdivision 19a, is amended to read: 180.34 Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL 180.35 SUPPORT.] (a) No school district shall be required by any type 180.36 of formal or informal agreement except an agreement to provide 181.1 building space according to paragraph (f), including a joint 181.2 powers agreement, or membership in any cooperative unit defined 181.3 in subdivision 19b, paragraph (d), to participate in or provide 181.4 financial support for the purposes of the agreement for a time 181.5 period in excess ofonefour fiscalyearyears, or the time 181.6 period set forth in this subdivision. Any agreement, part of an 181.7 agreement, or other type of requirement to the contrary is void. 181.8 (b) This subdivision shall not affect the continued 181.9 liability of a school district for its share of bonded 181.10 indebtedness or other debt incurred as a result of any agreement 181.11 before July 1, 1993. The school district is liable only until 181.12 the obligation or debt is discharged and only according to the 181.13 payment schedule in effect on July 1, 1993, except that the 181.14 payment schedule may be altered for the purpose of restructuring 181.15 debt or refunding bonds outstanding on July 1, 1993, if the 181.16 annual payments of the school district are not increased and if 181.17 the total obligation of the school district for its share of 181.18 outstanding bonds or other debt is not increased. 181.19 (c) To cease participating in or providing financial 181.20 support for any of the services or activities relating to the 181.21 agreement or to terminate participation in the agreement, the 181.22 school board shall adopt a resolution and notify other parties 181.23 to the agreement of its decision on or before February 1 of any 181.24 year. The cessation or withdrawal shall be effective June 30 of 181.25 the same year except that for a member of an education district 181.26 organized under sections 122.91 to 122.95 or an intermediate 181.27 district organized under chapter 136D, cessation or withdrawal 181.28 shall be effective June 30 of the following fiscal year. At the 181.29 option of the school board, cessation or withdrawal may be 181.30 effective June 30 of the following fiscal year for a district 181.31 participating in any type of agreement. 181.32 (d) Before issuing bonds or incurring other debt, the 181.33 governing body responsible for implementing the agreement shall 181.34 adopt a resolution proposing to issue bonds or incur other debt 181.35 and the proposed financial effect of the bonds or other debt 181.36 upon each participating district. The resolution shall be 182.1 adopted within a time sufficient to allow the school board to 182.2 adopt a resolution within the time permitted by this paragraph 182.3 and to comply with the statutory deadlines set forth in sections 182.4 122.895, 125.12, and 125.17. The governing body responsible for 182.5 implementing the agreement shall notify each participating 182.6 school board of the contents of the resolution. Within 120 days 182.7 of receiving the resolution of the governing body, the school 182.8 board of the participating district shall adopt a resolution 182.9 stating: 182.10 (1) its concurrence with issuing bonds or incurring other 182.11 debt; 182.12 (2) its intention to cease participating in or providing 182.13 financial support for the service or activity related to the 182.14 bonds or other debt; or 182.15 (3) its intention to terminate participation in the 182.16 agreement. 182.17 A school board adopting a resolution according to clause 182.18 (1) is liable for its share of bonded indebtedness or other debt 182.19 as proposed by the governing body implementing the agreement. A 182.20 school board adopting a resolution according to clause (2) is 182.21 not liable for the bonded indebtedness or other debt, as 182.22 proposed by the governing body, related to the services or 182.23 activities in which the district ceases participating or 182.24 providing financial support. A school board adopting a 182.25 resolution according to clause (3) is not liable for the bonded 182.26 indebtedness or other debt proposed by the governing body 182.27 implementing the agreement. 182.28 (e) After July 1, 1993, a district is liable according to 182.29 paragraph (d) for its share of bonded indebtedness or other debt 182.30 incurred by the governing body implementing the agreement to the 182.31 extent that the bonds or other debt are directly related to the 182.32 services or activities in which the district participates or for 182.33 which the district provides financial support. The district has 182.34 continued liability only until the obligation or debt is 182.35 discharged and only according to the payment schedule in effect 182.36 at the time the governing body implementing the agreement 183.1 provides notice to the school board, except that the payment 183.2 schedule may be altered for the purpose of refunding the 183.3 outstanding bonds or restructuring other debt if the annual 183.4 payments of the district are not increased and if the total 183.5 obligation of the district for the outstanding bonds or other 183.6 debt is not increased. 183.7 (f) A school district that is a member of a cooperative 183.8 unit as defined in subdivision 19b, paragraph (d), may obligate 183.9 itself to participate in and provide financial support for an 183.10 agreement with a cooperative unit to provide school building 183.11 space for a term not to exceed two years with an option on the 183.12 part of the district to renew for an additional two years. 183.13 Sec. 59. Minnesota Statutes 1996, section 123.3514, is 183.14 amended by adding a subdivision to read: 183.15 Subd. 4f. [PARTICIPATION IN HIGH SCHOOL 183.16 ACTIVITIES.] Enrolling in a course under this section shall not, 183.17 by itself, prohibit a pupil from participating in activities 183.18 sponsored by the pupil's high school. 183.19 Sec. 60. Minnesota Statutes 1996, section 123.39, 183.20 subdivision 1, is amended to read: 183.21 Subdivision 1. The board may provide for the 183.22 transportation of pupils to and from school and for any other 183.23 purpose. The board may also provide for the transportation of 183.24 pupils to schools in other districts for grades and departments 183.25 not maintained in the district, including high school, at the 183.26 expense of the district, when funds are available therefor and 183.27 if agreeable to the district to which it is proposed to 183.28 transport the pupils, for the whole or a part of the school 183.29 year, as it may deem advisable, and subject to its rules. In 183.30 any school district, the board shall arrange for the attendance 183.31 of all pupils living two miles or more from the school, except 183.32 pupils whose transportation privileges have been revoked under 183.33 section 123.805, subdivision 1, clause (6), or 123.7991, 183.34 paragraph (b), or whose privileges have been voluntarily 183.35 surrendered under subdivision 1a, through suitable provision for 183.36 transportation or through the boarding and rooming of the pupils 184.1 who may be more economically and conveniently provided for by 184.2 that means. Arrangements for attendance may include a 184.3 requirement that parents or guardians request transportation 184.4 before it is provided. The board shall provide transportation 184.5 to and from the home of a child with a disability not yet 184.6 enrolled in kindergarten when special instruction and services 184.7 under sections 120.17 and 120.1701 are provided in a location 184.8 other than in the child's home. When transportation is 184.9 provided, scheduling of routes, establishment of the location of 184.10 bus stops, manner and method of transportation, control and 184.11 discipline of school children and any other matter relating 184.12 thereto shall be within the sole discretion, control, and 184.13 management of the school board. The district may provide for 184.14 the transportation of pupils or expend a reasonable amount for 184.15 room and board of pupils whose attendance at school can more 184.16 economically and conveniently be provided for by that means or 184.17 who attend school in a building rented or leased by a district 184.18 within the confines of an adjacent district. 184.19 Sec. 61. Minnesota Statutes 1996, section 123.39, is 184.20 amended by adding a subdivision to read: 184.21 Subd. 1a. [VOLUNTARY SURRENDER OF TRANSPORTATION 184.22 PRIVILEGES.] The parent or guardian of a secondary student may 184.23 voluntarily surrender the secondary student's to and from school 184.24 transportation privileges granted under subdivision 1, in 184.25 exchange for the privilege of obtaining school parking at a 184.26 reduced price. 184.27 Sec. 62. Minnesota Statutes 1996, section 123.805, 184.28 subdivision 1, is amended to read: 184.29 Subdivision 1. [COMPREHENSIVE POLICY.] Each school 184.30 district shall develop and implement a comprehensive, written 184.31 policy governing pupil transportation safety, including 184.32 transportation of nonpublic school students, when applicable. 184.33 The policy shall, at minimum, contain: 184.34 (1) provisions for appropriate student bus safety training 184.35 under section 123.7991; 184.36 (2) rules governing student conduct on school buses and in 185.1 school bus loading and unloading areas; 185.2 (3) a statement of parent or guardian responsibilities 185.3 relating to school bus safety; 185.4 (4) provisions for notifying students and parents or 185.5 guardians of their responsibilities and the rules; 185.6 (5) an intradistrict system for reporting school bus 185.7 accidents or misconduct,and a system for dealing with local law 185.8 enforcement officials in cases of criminal conduct on a school 185.9 bus, and a system for reporting accidents, crimes, incidents of185.10misconduct, and bus driver dismissals to the department of185.11public safety under section 169.452; 185.12 (6) a discipline policy to address violations of school bus 185.13 safety rules, including procedures for revoking a student's bus 185.14 riding privileges in cases of serious or repeated misconduct; 185.15 (7) a system for integrating school bus misconduct records 185.16 with other discipline records; 185.17 (8) a statement of bus driver duties; 185.18 (9) planned expenditures for safety activities under 185.19 section 123.799 and, where applicable, provisions governing bus 185.20 monitor qualifications, training, and duties; 185.21 (10) rules governing the use and maintenance of type III 185.22 vehicles, drivers of type III vehicles, qualifications to drive 185.23 a type III vehicle, qualifications for a type III vehicle and 185.24 the circumstances under which a student may be transported in a 185.25 type III vehicle; 185.26 (11) operating rules and procedures; 185.27 (12) provisions for annual bus driver in-service training 185.28 and evaluation; 185.29 (13) emergency procedures; 185.30 (14) a system for maintaining and inspecting equipment; 185.31 (15) requirements of the school district, if any, that 185.32 exceed state law minimum requirements for school bus operations; 185.33 and 185.34 (16) requirements for basic first aid training, which shall 185.35 include the Heimlich maneuver and procedures for dealing with 185.36 obstructed airways, shock, bleeding, and seizures. 186.1 School districts are encouraged to use the model policy 186.2 developed by the Minnesota school boards association, the 186.3 department of public safety, and the department of children, 186.4 families, and learning, as well as the current edition of the 186.5 "National Standards for School Buses and Operations" published 186.6 by the National Safety Council, in developing safety policies. 186.7 Each district shall submit a copy of its policy under this 186.8 subdivision to the school bus safety advisory committee no later 186.9 than August 1, 1994. Each district shall review its policy 186.10 annually and make appropriate amendments, which must be 186.11 submitted to the school bus safety advisory committee within one 186.12 month of approval by the school board. 186.13 Sec. 63. Minnesota Statutes 1996, section 124.078, is 186.14 amended to read: 186.15 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 186.16 A state permanent school fund advisory committee is 186.17 established to advise the department of natural resources on the 186.18 management of permanent school fund land, which is held in trust 186.19 for the school districts of the state. The advisory committee 186.20 shall consist of the following persons or their designees: the 186.21 chairs of the education committees of the legislature, the 186.22 chairs of the senate committee on finance and house committee on 186.23 ways and means, the chair of the senate environment and natural 186.24 resources committee, the chair of the senate environment and 186.25 agriculture budget division committee, the commissioner of 186.26 children, families, and learning, one superintendent from a 186.27 nonmetropolitan district, and one superintendent from a 186.28 metropolitan area district. The commissioner of natural 186.29 resources shall serve as an ex officio member. The school 186.30 district superintendents shall be appointed by the commissioner 186.31 of children, families, and learning. 186.32 The advisory committee shall review the policies of the 186.33 department of natural resources and current statutes on 186.34 management of school trust fund lands at least semiannually and 186.35 shall recommend necessary changes in statutes, policy, and 186.36 implementation in order to ensure provident utilization of the 187.1 permanent school fund lands. 187.2 Sec. 64. Minnesota Statutes 1996, section 124.225, 187.3 subdivision 7f, is amended to read: 187.4 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 187.5 district shall reserve an amount equal to the greater of $500 or 187.6 $1.50 times the number of fund balance pupil units, for that 187.7 school year to provide student transportation safety programs 187.8 under section 123.799. This revenue may only be used if the 187.9 district complies with the reporting requirements of section 187.10 123.7991, 123.805,169.452,169.4582, or 171.321, subdivision 5. 187.11 Sec. 65. Minnesota Statutes 1996, section 124.225, 187.12 subdivision 8m, is amended to read: 187.13 Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's 187.14 transportation safety aid equals the district's reserved revenue 187.15 for transportation safety under subdivision 7f for that school 187.16 year. Failure of a school district to comply with the reporting 187.17 requirements of section 123.7991, 123.805,169.452,169.4582, or 187.18 171.321, subdivision 5, may result in a withholding of that 187.19 district's transportation safety aid for that school year. 187.20 Sec. 66. Minnesota Statutes 1996, section 124.646, 187.21 subdivision 4, is amended to read: 187.22 Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses 187.23 described in this subdivision must be recorded as provided in 187.24 this subdivision. 187.25 (b) In each school district, the expenses for a school food 187.26 service program for pupils must be attributed to a school food 187.27 service fund. Under a food service program, the school food 187.28 service may prepare or serve milk, meals, or snacks in 187.29 connection with school or community service activities. 187.30 (c) Revenues and expenditures for food service activities 187.31 must be recorded in the food service fund. The costs of 187.32 processing applications, accounting for meals, preparing and 187.33 serving food, providing kitchen custodial services, and other 187.34 expenses involving the preparing of meals or the kitchen section 187.35 of the lunchroom may be charged to the food service fund or to 187.36 the general fund of the district. The costs of lunchroom 188.1 supervision, lunchroom custodial services, lunchroom utilities, 188.2 and other administrative costs of the food service program must 188.3 be charged to the general fund. 188.4 That portion of superintendent and fiscal manager costs 188.5 that can be documented as attributable to the food service 188.6 program may be charged to the food service fund provided that 188.7 the school district does not employ or contract with a food 188.8 service director or other individual who manages the food 188.9 service program, or food service management company. If the 188.10 cost of the superintendent or fiscal manager is charged to the 188.11 food service fund, the charge must be at a wage rate not to 188.12 exceed the statewide average for food service directors as 188.13 determined by the department of children, families, and learning. 188.14 (d) Capital expenditures for the purchase of food service 188.15 equipment must be made from thecapitalgeneral fund and not the 188.16 food service fund, unless two conditions apply: 188.17 (1) the unreserved balance in the food service fund at the 188.18 end of the last fiscal year is greater than the cost of the 188.19 equipment to be purchased; and 188.20 (2) the department of children, families, and learning has 188.21 approved the purchase of the equipment. 188.22 (e) If the two conditions set out in paragraph (d) apply, 188.23 the equipment may be purchased from the food service fund. 188.24 (f) If a deficit in the food service fund exists at the end 188.25 of a fiscal year, and the deficit is not eliminated by revenues 188.26 from food service operations in the next fiscal year, then the 188.27 deficit must be eliminated by a permanent fund transfer from the 188.28 general fund at the end of that second fiscal year. However, if 188.29 a district contracts with a food service management company 188.30 during the period in which the deficit has accrued, the deficit 188.31 must be eliminated by a payment from the food service management 188.32 company. 188.33 (g) Notwithstanding paragraph (f), a district may incur a 188.34 deficit in the food service fund for up to three years without 188.35 making the permanent transfer if the district submits to the 188.36 commissioner by January 1 of the second fiscal year a plan for 189.1 eliminating that deficit at the end of the third fiscal year. 189.2 (h) If a surplus in the food service fund exists at the end 189.3 of a fiscal year for three successive years, a district may 189.4 recode for that fiscal year the costs of lunchroom supervision, 189.5 lunchroom custodial services, lunchroom utilities, and other 189.6 administrative costs of the food service program charged to the 189.7 general fund according to paragraph (c) and charge those costs 189.8 to the food service fund in a total amount not to exceed the 189.9 amount of surplus in the food service fund. 189.10 Sec. 67. Minnesota Statutes 1997 Supplement, section 189.11 124.6475, is amended to read: 189.12 124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 189.13 States funds are available to compensate 189.14 department-approved summer food program sponsors for reduced 189.15 federal operating reimbursement rates under Public Law Number 189.16 104-193, the federal summer food service program. A sponsor is 189.17 eligible for summer food service replacement aid equal to the 189.18 sum of the following amounts: 189.19 (1) for breakfast service,subtract the current year189.20maximum reimbursement rate from the 1996 maximum reimbursement189.21rate and multiply the result by the number of breakfasts the189.22district servedup to four cents per breakfast served by the 189.23 sponsor during the currentschoolprogram year; 189.24 (2) for lunch or supper service,subtract the current year189.25maximum reimbursement rate from the 1996 maximum reimbursement189.26rate and multiply the result by the number of lunches and189.27suppers the district servedup to 14 cents per lunch or supper 189.28 served by the sponsor during the currentschoolprogram year; 189.29 and 189.30 (3) for supplement service,subtract the current year189.31maximum reimbursement rate from the 1996 maximum reimbursement189.32rate and multiply the result by the number ofup to ten cents 189.33 per supplementmealsserved by thedistrict servedsponsor 189.34 during the currentschoolprogram year. 189.35 Sec. 68. Minnesota Statutes 1997 Supplement, section 189.36 124.648, subdivision 3, is amended to read: 190.1 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 190.2 (a) The commissioner shall: 190.3 (1) encourage all districts to participate in the school 190.4 milk program for kindergartners; 190.5 (2) prepare program guidelines, not subject to chapter 14 190.6 until July 1, 1998, which will effectively and efficiently 190.7 distribute appropriated and donated money to participating 190.8 districts; and 190.9 (3) seek donations and matching funds from appropriate 190.10 private and public sources. 190.11 (b) Program guidelines may provide for disbursement to 190.12 districts through a mechanism of prepayments or by reimbursement 190.13 for approved program expenses. 190.14(c) It is suggested that the benefits of the school milk190.15program may reach the largest number of kindergarten students if190.16districts are allowed to submit annual bids stating the190.17per-serving level of support that would be acceptable to the190.18district for their participation in the program. The190.19commissioner would review all bids received and approve bids in190.20sufficient number and value to maximize the provision of milk to190.21kindergarten students consistent with available funds.190.22 Sec. 69. Minnesota Statutes 1997 Supplement, section 190.23 125.05, subdivision 1c, is amended to read: 190.24 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 190.25 ETHICS.] Thestate board of educationcommissioner of children, 190.26 families, and learning shall issue licenses under its 190.27 jurisdiction to persons thestate boardcommissioner finds to be 190.28 qualified and competent for their respective positions under the 190.29 adopted rulesit adopts. Thestate board of education190.30 commissioner may develop, by rule, a code of ethics for 190.31 supervisory personnel covering standards of professional 190.32 practices, including areas of ethical conduct and professional 190.33 performance and methods of enforcement. 190.34 Sec. 70. Minnesota Statutes 1997 Supplement, section 190.35 125.05, subdivision 2, is amended to read: 190.36 Subd. 2. [EXPIRATION AND RENEWAL.] (a) Each license the 191.1 department of children, families, and learning issues through 191.2 its licensing section must bear the date of issue. Licenses 191.3 must expire and be renewed according to the respective rules the 191.4 board of teaching or thestate board of educationcommissioner 191.5 of children, families, and learning adopts. Requirements for 191.6 renewing a license must include showing satisfactory evidence of 191.7 successful teaching experience for at least one school year 191.8 during the period covered by the license in grades or subjects 191.9 for which the license is valid or completing such additional 191.10 preparation as the board of teaching prescribes. Thestate191.11board of educationcommissioner shall establish requirements for 191.12 renewing the licenses of supervisory personnel. 191.13 (b) The board of teaching shall offer alternative 191.14 continuing relicensure options for teachers who are accepted 191.15 into and complete the national board for professional teaching 191.16 standards certification process, and offer additional continuing 191.17 relicensure options for teachers who earn national board for 191.18 professional teaching standards certification. Continuing 191.19 relicensure requirements for teachers who do not maintain 191.20 national board for professional teaching standards certification 191.21 are those the board prescribes. 191.22 Sec. 71. Minnesota Statutes 1996, section 125.05, 191.23 subdivision 4, is amended to read: 191.24 Subd. 4. [HUMAN RELATIONS.] The board of teaching and 191.25 thestate board of educationcommissioner of children, families, 191.26 and learning shall accept training programs completed through 191.27 Peace Corps, VISTA, or Teacher Corps in lieu of completion of 191.28 the human relations component of the training program for 191.29 purposes of issuing or renewing a license in education. 191.30 Sec. 72. Minnesota Statutes 1996, section 125.05, 191.31 subdivision 8, is amended to read: 191.32 Subd. 8. [BACKGROUND CHECKS.] (a) The board of teaching 191.33 and thestate board of educationcommissioner of children, 191.34 families, and learning shall request a criminal history 191.35 background check from the superintendent of the bureau of 191.36 criminal apprehension on all applicants for initial licenses 192.1 under their jurisdiction. An application for a license under 192.2 this section must be accompanied by: 192.3 (1) an executed criminal history consent form, including 192.4 fingerprints; and 192.5 (2) a money order or cashier's check payable to the bureau 192.6 of criminal apprehension for the fee for conducting the criminal 192.7 history background check. 192.8 (b) The superintendent of the bureau of criminal 192.9 apprehension shall perform the background check required under 192.10 paragraph (a) by retrieving criminal history data maintained in 192.11 the criminal justice information system computers and shall also 192.12 conduct a search of the national criminal records repository, 192.13 including the criminal justice data communications network. The 192.14 superintendent is authorized to exchange fingerprints with the 192.15 Federal Bureau of Investigation for purposes of the criminal 192.16 history check. The superintendent shall recover the cost to the 192.17 bureau of a background check through the fee charged to the 192.18 applicant under paragraph (a). 192.19 (c) The board of teaching or thestate board of education192.20 commissioner of children, families, and learning may issue a 192.21 license pending completion of a background check under this 192.22 subdivision, but shall notify the individual that the 192.23 individual's license may be revoked based on the result of the 192.24 background check. 192.25 Sec. 73. Minnesota Statutes 1996, section 125.1885, 192.26 subdivision 1, is amended to read: 192.27 Subdivision 1. [REQUIREMENTS.] (a) A preparation program 192.28 that is an alternative to a graduate program in education 192.29 administration for public school administrators to acquire an 192.30 entrance license is established. The program may be offered in 192.31 any administrative field. 192.32 (b) To participate in the alternative preparation program, 192.33 the candidate must: 192.34 (1) have a master's degree in an administrative area; 192.35 (2) have been offered an administrative position in a 192.36 school district, group of districts, or an education district 193.1 approved by thestate board of educationcommissioner of 193.2 children, families, and learning to offer an alternative 193.3 preparation licensure program; 193.4 (3) have five years of experience in a field related to 193.5 administration; and 193.6 (4) document successful experiences working with children 193.7 and adults. 193.8 (c) An alternative preparation license is of one year 193.9 duration and is issued by thestate board of education193.10 commissioner of children, families, and learning to participants 193.11 on admission to the alternative preparation program. 193.12 Sec. 74. Minnesota Statutes 1996, section 125.1885, 193.13 subdivision 4, is amended to read: 193.14 Subd. 4. [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 193.15 resident mentorship team must prepare for thestate board of193.16educationcommissioner of children, families, and learning an 193.17 evaluation report on the performance of the alternative 193.18 preparation licensee during the school year and a positive or 193.19 negative recommendation on whether the alternative preparation 193.20 licensee shall receive a standard entrance license. 193.21 Sec. 75. Minnesota Statutes 1996, section 125.1885, 193.22 subdivision 5, is amended to read: 193.23 Subd. 5. [STANDARD ENTRANCE LICENSE.] Thestate board of193.24educationcommissioner of children, families, and learning shall 193.25 issue a standard entrance license to an alternative preparation 193.26 licensee who has successfully completed the school year in the 193.27 alternative preparation program and who has received a positive 193.28 recommendation from the licensee's mentorship team. 193.29 Sec. 76. Minnesota Statutes 1996, section 125.191, is 193.30 amended to read: 193.31 125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 193.32 Notwithstanding section 125.03, subdivision 1, a school 193.33 district may employ as a head varsity coach of an 193.34 interscholastic sport at its secondary school a person whodoes193.35not have a license as head varsity coach of interscholastic193.36sports and who does not have a bachelor's degree if: 194.1 (1) in the judgment of the school board,the personhas the 194.2 knowledge and experience necessary to coach the sport; 194.3 (2)the position has been posted as a vacancy within the194.4present teaching staff for a period of 30 days and no licensed194.5coaches have applied for the position;194.6(3) the personcan verify completion of six quarter 194.7 credits, or the equivalent, or 60 clock hours of instruction in 194.8 first aid and the care and prevention of athletic injuries; and 194.9(4) the person(3) can verify completion of a coaching 194.10 methods or theory course. 194.11 Notwithstanding section 125.121, a person employed as a 194.12 head varsity coach under this section has an annual contract as 194.13 a coach that the school board may or may not renew as the board 194.14 sees fit, after annually posting the position as required in194.15clause (2) and no licensed coach has applied for the position. 194.16 Sec. 77. Minnesota Statutes 1996, section 128A.02, 194.17 subdivision 1, is amended to read: 194.18 Subdivision 1. [TO GOVERNGOVERNANCE.] Thestateboard of 194.19educationthe Faribault academy shall govern the state academy 194.20 for the deaf and the state academy for the blind. The board 194.21 must promote academic standards based on high expectation and an 194.22 assessment system to measure academic performance toward the 194.23 achievement of those standards. The board must focus on the 194.24 academies' needs as a whole and not prefer one school over the 194.25 other. The board of the Faribault academies shall consist of 194.26 seven persons. The members of the board shall be appointed by 194.27 the governor with the advice and consent of the senate. Three 194.28 members must be from the seven-county metropolitan area, three 194.29 members must be from greater Minnesota, and one member may be 194.30 appointed at-large. The board must be composed of: 194.31 (1) one superintendent of an independent school district; 194.32 (2) one special education director; 194.33 (3) the commissioner of children, families, and learning or 194.34 the commissioner's designee; 194.35 (4) one member of the blind community; 194.36 (5) one member of the deaf community; and 195.1 (6) two members of the general public with business or 195.2 financial expertise. 195.3 Sec. 78. Minnesota Statutes 1996, section 128A.02, is 195.4 amended by adding a subdivision to read: 195.5 Subd. 1b. [TERMS; COMPENSATION; AND OTHER.] The membership 195.6 terms, compensation, removal of members, and filling of 195.7 vacancies shall be as provided for in section 15.0575. A member 195.8 may serve not more than two consecutive terms. 195.9 Sec. 79. Minnesota Statutes 1996, section 128A.02, is 195.10 amended by adding a subdivision to read: 195.11 Subd. 2b. [MEETINGS.] All meetings of the board shall be 195.12 as provided in section 471.705 and must be held in Faribault. 195.13 Sec. 80. Minnesota Statutes 1996, section 128A.02, 195.14 subdivision 3, is amended to read: 195.15 Subd. 3. [MOST BENEFICIAL, LEAST RESTRICTIVE.] Thestate195.16 board must do what is necessary to provide the most beneficial 195.17 and least restrictive program of education for each pupil at the 195.18 academies who is handicapped by visual disability or deafness. 195.19 Sec. 81. Minnesota Statutes 1996, section 128A.02, 195.20 subdivision 3b, is amended to read: 195.21 Subd. 3b. [PLANNING, EVALUATION, AND REPORTING.] To the 195.22 extent required in school districts, thestateboard must 195.23 establish a process for the academies to include parent and 195.24 community input in the planning, evaluation, and reporting of 195.25 curriculum and pupil achievement. 195.26 Sec. 82. Minnesota Statutes 1996, section 128A.02, 195.27 subdivision 5, is amended to read: 195.28 Subd. 5. [SITE COUNCILS.] Thestateboard may establish, 195.29 and appoint members to, a site council at each academy. The 195.30 site councils shall exercise power and authority granted by 195.31 thestateboard. Thestateboard must appoint to each site 195.32 council the exclusive representative's employee designee from 195.33 each exclusive representative at the academies. 195.34 Sec. 83. Minnesota Statutes 1996, section 128A.02, 195.35 subdivision 6, is amended to read: 195.36 Subd. 6. [TRUSTEE OF ACADEMIES' PROPERTY.] Thestateboard 196.1 is the trustee of the academies' property. Securities and 196.2 money, including income from the property, must be deposited in 196.3 the state treasury according to section 16A.275. The deposits 196.4 are subject to the order of thestateboard. 196.5 Sec. 84. Minnesota Statutes 1997 Supplement, section 196.6 128A.02, subdivision 7, is amended to read: 196.7 Subd. 7. [GRANTS.] Thestateboard, through the chief 196.8 administrators of the academies, may apply for all competitive 196.9 grants administered by agencies of the state and other 196.10 government or nongovernment sources. Application may not be 196.11 made for grants over which the board has discretion. 196.12 Sec. 85. Minnesota Statutes 1996, section 128A.022, is 196.13 amended to read: 196.14 128A.022 [POWERS OFSTATEBOARD OFEDUCATIONTHE FARIBAULT 196.15 ACADEMIES.] 196.16 Subdivision 1. [PERSONNEL.] Thestateboardof education196.17 of the Faribault academies may employ central administrative 196.18 staff members and other personnel necessary to provide and 196.19 support programs and services at each academy. 196.20 Subd. 2. [GET HELP FROM DEPARTMENT.] Thestateboard of 196.21 the Faribault academies may require the department of children, 196.22 families, and learning to provide program leadership, program 196.23 monitoring, and technical assistance at the academies. 196.24 Subd. 3. [UNCLASSIFIED POSITIONS.] Thestateboard of the 196.25 Faribault academies may place any position other than 196.26 residential academies administrator in the unclassified 196.27 service. The position must meet the criteria in section 43A.08, 196.28 subdivision 1a. 196.29 Subd. 4. [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 196.30 Thestateboard of the Faribault academies may enter into 196.31 agreements with public or private agencies or institutions to 196.32 provide residential and building maintenance services. 196.33 Thestateboard of the Faribault academies must first decide 196.34 that contracting for the services is more efficient and less 196.35 expensive than not contracting for them. 196.36 Subd. 6. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 197.1 Thestateboard of the Faribault academies may enter into 197.2 agreements with teacher preparation institutions for student 197.3 teachers to get practical experience at the academies. A 197.4 licensed teacher must provide appropriate supervision of each 197.5 student teacher. 197.6 (b) Thestateboard of the Faribault academies may enter 197.7 into agreements with accredited higher education institutions 197.8 for certain student trainees to get practical experience at the 197.9 academies. The students must be preparing themselves in a 197.10 professional field that provides special services to children 197.11 with a disability in school programs. To be a student trainee 197.12 in a field, a person must have completed at least two years of 197.13 an approved program in the field. A person who is licensed or 197.14 registered in the field must provide appropriate supervision of 197.15 each student trainee. 197.16 Sec. 86. Minnesota Statutes 1996, section 128A.023, 197.17 subdivision 1, is amended to read: 197.18 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 197.19 LEARNING.] The department of children, families, and learning 197.20 must assist thestateboard ofeducationthe Faribault academies 197.21 in preparing reports on the academies. 197.22 Sec. 87. Minnesota Statutes 1996, section 128A.023, 197.23 subdivision 2, is amended to read: 197.24 Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] The 197.25 department of employee relations, in cooperation with thestate197.26 board ofeducationthe Faribault academies, must develop a 197.27 statement of necessary qualifications and skills for all staff 197.28 members of the academies. 197.29 Sec. 88. Minnesota Statutes 1996, section 128A.026, 197.30 subdivision 1, is amended to read: 197.31 Subdivision 1. [SUBJECTS.] Thestateboard ofeducation197.32 the Faribault academies must establish procedures for: 197.33 (1) admission, including short-term admission, to the 197.34 academies; 197.35 (2) discharge from the academies; 197.36 (3) decisions on a pupil's program at the academies; and 198.1 (4) evaluation of a pupil's progress at the academies. 198.2 Sec. 89. Minnesota Statutes 1996, section 128A.026, 198.3 subdivision 3, is amended to read: 198.4 Subd. 3. [NOT CONTESTED CASE.] A proceeding about 198.5 admission to or discharge from the academies or about a pupil's 198.6 program or progress at the academies is not a contested case 198.7 under section 14.02. The proceeding is governed instead by the 198.8 rulesof the state boardgoverning special education. 198.9 Sec. 90. Minnesota Statutes 1996, section 128A.07, 198.10 subdivision 2, is amended to read: 198.11 Subd. 2. [LOCAL SOCIAL SERVICES AGENCY.] If the person 198.12 liable for support of a pupil cannot support the pupil, the 198.13 local social services agency of the county of the pupil's 198.14 residence must do so. The commissioner of children, families, 198.15 and learning must decide how much the local social services 198.16 agency must pay. Thestateboard ofeducationthe Faribault 198.17 academies must adopt rules that tell how the commissioner is to 198.18 fix the amount. The local social services agency must make the 198.19 payment to the superintendent of the school district of 198.20 residence. 198.21 Sec. 91. Minnesota Statutes 1997 Supplement, section 198.22 169.01, subdivision 6, is amended to read: 198.23 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 198.24 used to transport pupils to or from a school defined in section 198.25 120.101, or to or from school-related activities, by the school 198.26 or a school district, or by someone under an agreement with the 198.27 school or a school district. A school bus does not include a 198.28 motor vehicle transporting children to or from school for which 198.29 parents or guardians receive direct compensation from a school 198.30 district, a motor coach operating under charter carrier 198.31 authority, a transit bus providing services as defined in 198.32 section 174.22, subdivision 7, or a vehicle otherwise qualifying 198.33 as a type III vehicle under paragraph (5), when the vehicle is 198.34 properly registered and insured and being driven by an employee 198.35 or agent of a school district for nonscheduled transportation. 198.36 A school bus may be type A, type B, type C, or type D, or type 199.1 III as follows: 199.2 (1) A "type A school bus" is a conversion or body 199.3 constructed upon a van-type or cutaway front section vehicle 199.4 with a left-side driver's door, designed for carrying more than 199.5 ten persons. This definition includes two classifications: 199.6 type A-I, with a gross vehicle weight rating (GVWR) over 10,000 199.7 pounds; and type A-II, with a GVWR of 10,000 pounds or less. 199.8 (2) A "type B school bus" is a conversion or body 199.9 constructed and installed upon a van or front-section vehicle 199.10 chassis, or stripped chassis, with a gross vehicle weight rating 199.11 of more than 10,000 pounds, designed for carrying more than ten 199.12 persons. Part of the engine is beneath or behind the windshield 199.13 and beside the driver's seat. The entrance door is behind the 199.14 front wheels. 199.15 (3) A "type C school bus" is a body installed upon a flat 199.16 back cowl chassis with a gross vehicle weight rating of more 199.17 than 10,000 pounds, designed for carrying more than ten 199.18 persons. All of the engine is in front of the windshield and 199.19 the entrance door is behind the front wheels. 199.20 (4) A "type D school bus" is a body installed upon a 199.21 chassis, with the engine mounted in the front, midship or rear, 199.22 with a gross vehicle weight rating of more than 10,000 pounds, 199.23 designed for carrying more than ten persons. The engine may be 199.24 behind the windshield and beside the driver's seat; it may be at 199.25 the rear of the bus, behind the rear wheels, or midship between 199.26 the front and rear axles. The entrance door is ahead of the 199.27 front wheels. 199.28 (5) Except for vehicles equipped with lifts, type III 199.29 school buses and type III Head Start buses are restricted to 199.30 passenger cars, station wagons, vans, and buses havinga maximum199.31 an original maximum manufacturer's rated seating capacity of ten 199.32 or fewer people, including the driver, and a gross vehicle 199.33 weight rating of 10,000 pounds or less. In this subdivision, 199.34 "gross vehicle weight rating" means the value specified by the 199.35 manufacturer as the loaded weight of a single vehicle. A "type 199.36 III school bus" and "type III Head Start bus" must not be 200.1 outwardly equipped and identified as a type A, B, C, or D school 200.2 bus or type A, B, C, or D Head Start bus. 200.3 Sec. 92. Minnesota Statutes 1996, section 169.448, 200.4 subdivision 2, is amended to read: 200.5 Subd. 2. [SCHOOL MOTOR COACHES.] (a) A school district may 200.6 not acquire a motor coach for transportation purposes. 200.7 (b) A motor coach acquired by a school district before 200.8 March 26, 1986, may be used by it only to transport students 200.9 participating in school activities, their instructors, and 200.10 supporting personnel to and from school activities. A motor 200.11 coach may not be outwardly equipped and identified as a school 200.12 bus. A motor coach operated under this subdivision is not a 200.13 school bus for purposes of section 124.225. Thestate board of200.14educationcommissioner of children, families, and learning shall 200.15 implement rules governing the equipment, identification, 200.16 operation, inspection, and certification of motor coaches 200.17 operated under this subdivision. 200.18 (c) After January 1, 1998, a school district may not own or 200.19 operate a motor coach for any purpose. 200.20 Sec. 93. Minnesota Statutes 1996, section 169.451, 200.21 subdivision 5, is amended to read: 200.22 Subd. 5. [RANDOM SPOT INSPECTIONS.] In addition to the 200.23 annual inspection, the Minnesota state patrol has authority to 200.24 conduct random, unannounced spot inspections of any school bus 200.25 or Head Start bus being operated within the stateat the200.26location where the bus is kept when not in operationto 200.27 ascertain whetherits construction, design, equipment, and color200.28complyit is in compliance withallprovisions of law, including 200.29 the Minnesota school bus equipment standards in sections 200.30 169.4501 to 169.4504, subject to the procedures approved by the 200.31 commissioner. 200.32 Sec. 94. Minnesota Statutes 1997 Supplement, section 200.33 169.974, subdivision 2, is amended to read: 200.34 Subd. 2. [LICENSE REQUIREMENTS.] No person shall operate a 200.35 motorcycle on any street or highway without having a valid 200.36 standard driver's license with a two-wheeled vehicle endorsement 201.1 as provided by law. No such two-wheeled vehicle endorsement 201.2 shall be issued unless the person applying therefor has in 201.3 possession a valid two-wheeled vehicle instruction permit as 201.4 provided herein, has passed a written examination and road test 201.5 administered by the department of public safety for such 201.6 endorsement, and, in the case of applicants under 18 years of 201.7 age, shall present a certificate or other evidence of having 201.8 successfully completed an approved two-wheeled vehicle driver's 201.9 safety course in this or another state, in accordance with rules 201.10 promulgated by thestate board of educationcommissioner of 201.11 children, families, and learning for courses offered through the 201.12 public schools, or rules promulgated by the commissioner of 201.13 public safety for courses offered by a private or commercial 201.14 school or institute. The commissioner of public safety may 201.15 waive the road test for any applicant on determining that the 201.16 applicant possesses a valid license to operate a two-wheeled 201.17 vehicle issued by a jurisdiction that requires a comparable road 201.18 test for license issuance. A two-wheeled vehicle instruction 201.19 permit shall be issued to any person over 16 years of age, who 201.20 is in possession of a valid driver's license, who is enrolled in 201.21 an approved two-wheeled vehicle driver's safety course, and who 201.22 has passed a written examination for such permit and has paid 201.23 such fee as the commissioner of public safety shall prescribe. 201.24 A two-wheeled vehicle instruction permit shall be effective for 201.25 one year, and may be renewed under rules to be prescribed by the 201.26 commissioner of public safety. 201.27 No person who is operating by virtue of a two-wheeled 201.28 vehicle instruction permit shall: 201.29 (a) carry any passengers on the streets and highways of 201.30 this state on the motorcycle which the person is operating; 201.31 (b) drive the motorcycle at nighttime; 201.32 (c) drive the motorcycle on any highway marked by the 201.33 commissioner as an interstate highway pursuant to title 23 of 201.34 the United States Code; or 201.35 (d) drive the motorcycle without wearing protective 201.36 headgear that complies with standards established by the 202.1 commissioner of public safety. 202.2 Notwithstanding the provisions of this subdivision, the 202.3 commissioner of public safety may, however, issue a special 202.4 motorcycle permit, restricted or qualified in such manner as the 202.5 commissioner of public safety shall deem proper, to any person 202.6 demonstrating a need therefor and unable to qualify for a 202.7 standard driver's license. 202.8 Sec. 95. Minnesota Statutes 1997 Supplement, section 202.9 290.0674, subdivision 1, is amended to read: 202.10 Subdivision 1. [CREDIT ALLOWED.] An individual is allowed 202.11 a credit against the tax imposed by this chapter in an amount 202.12 equal to the amount paid for education-related expenses for a 202.13 dependent in kindergarten through grade 12. For purposes of 202.14 this section, "education-related expenses" means: 202.15 (1) fees or tuition for instruction by an instructor under 202.16 section 120.101, subdivision 7, clause (1), (2), (3), (4), or 202.17 (5), for instruction outside the regular school day or school 202.18 year, including tutoring, driver's education taken as part of 202.19 school curriculum, or summer camps, in grade or age appropriate 202.20 curricula that supplement curricula and instruction available 202.21 during the regular school year, that assists a dependent to 202.22 improve knowledge of core curriculum areas or to expand 202.23 knowledge and skills under the graduation rule under section 202.24 121.11, subdivision 7c, and that do not include the teaching of 202.25 religious tenets, doctrines, or worship, the purpose of which is 202.26 to instill such tenets, doctrines, or worship; 202.27 (2) fees or tuition for instruction for driver's education 202.28 from a private entity if the school the student attends offers 202.29 driver's education as part of a school curriculum and charges a 202.30 fee for the program; 202.31 (3) expenses for textbooks, including books and other 202.32 instructional materials and equipment used in elementary and 202.33 secondary schools in teaching only those subjects legally and 202.34 commonly taught in public elementary and secondary schools in 202.35 this state. "Textbooks" does not include instructional books 202.36 and materials used in the teaching of religious tenets, 203.1 doctrines, or worship, the purpose of which is to instill such 203.2 tenets, doctrines, or worship, nor does it include books or 203.3 materials for extracurricular activities including sporting 203.4 events, musical or dramatic events, speech activities, driver's 203.5 education, or similar programs; 203.6(3)(4) a maximum expense of $200 per family for personal 203.7 computer hardware, excluding single purpose processors, and 203.8 educational software that assists a dependent to improve 203.9 knowledge of core curriculum areas or to expand knowledge and 203.10 skills under the graduation rule under section 121.11, 203.11 subdivision 7c, purchased for use in the taxpayer's home and not 203.12 used in a trade or business regardless of whether the computer 203.13 is required by the dependent's school; and 203.14(4)(5) the amount paid to others for transportation of a 203.15 dependent attending an elementary or secondary school situated 203.16 in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 203.17 wherein a resident of this state may legally fulfill the state's 203.18 compulsory attendance laws, which is not operated for profit, 203.19 and which adheres to the provisions of the Civil Rights Act of 203.20 1964 and chapter 363. 203.21 Sec. 96. Minnesota Statutes 1996, section 471.18, is 203.22 amended to read: 203.23 471.18 [STATE BOARD OF EDUCATIONCOMMISSIONER OF CHILDREN, 203.24 FAMILIES, AND LEARNING TO ESTABLISH QUALIFICATIONS.] 203.25 In all cases where school funds or property are utilized, 203.26 thestate board of educationcommissioner of children, families, 203.27 and learning shall: 203.28 (1) Establish minimum qualifications of local recreational 203.29 directors and instructors; 203.30 (2) Prepare or cause to be prepared, published, and 203.31 distributed adequate and appropriate manuals and other materials 203.32 as it may deem necessary or suitable to carry out the provisions 203.33 of sections 471.15 to 471.19. 203.34 Sec. 97. Laws 1997, First Special Session chapter 4, 203.35 article 8, section 4, subdivision 3, is amended to read: 203.36 Subd. 3. [BOARD; APPOINTMENTS.] The resolution in 204.1 subdivision 2 shall provide for a library board offiveseven 204.2 members as follows: two members appointed by the school board 204.3 of independent school district No. 319, one member appointed by 204.4 each town board located within independent school district No. 204.5 319 boundaries, one member appointed by the council of the city 204.6 of Nashwauk, and one member appointed by the Itasca county board 204.7 to represent the unorganized towns within the school district 204.8 territory. 204.9 Sec. 98. [ACCELERATED TRANSITION PLAN.] 204.10 Notwithstanding Minnesota Statutes, section 122.23, 204.11 subdivision 2b, or other law to the contrary, independent school 204.12 district No. 2884, Red Rock Central, is authorized to terminate 204.13 all existing school board members' terms by the first Monday in 204.14 January 1999, and to hold elections for seven school board 204.15 members at the 1998 school district general election under 204.16 Minnesota Statutes, section 205A.04. Of the seven board members 204.17 elected, three members shall be elected to serve four-year terms 204.18 and four members shall be elected to serve two-year terms. Only 204.19 one board member from each election district shall be elected to 204.20 serve a four-year term. Candidates must specify in their 204.21 affidavit the election district and the term of office to which 204.22 they are seeking election. The school board members elected at 204.23 the 1998 school district general election shall assume office on 204.24 the first Monday in January 1999. The school board of 204.25 independent school district No. 2884, Red Rock Central, then 204.26 shall consist of seven members until such time as the electors 204.27 in the school district vote on a proposition favoring a 204.28 six-member board under Minnesota Statutes, section 123.33, 204.29 subdivision 1. 204.30 Sec. 99. [BUFFALO SCHOOL YEAR.] 204.31 Notwithstanding Minnesota Statutes, section 126.12, 204.32 subdivision 1, and Laws 1997, First Special Session chapter 4, 204.33 article 7, section 49, subdivision 1, for the 1998-1999 and 204.34 1999-2000 school years only, independent school district No. 204.35 877, Buffalo, may begin the school year any day prior to Labor 204.36 Day. 205.1 Sec. 100. [FUND TRANSFERS.] 205.2 Subdivision 1. [ADA-BORUP.] Notwithstanding Minnesota 205.3 Statutes, section 124.83, subdivision 6, independent school 205.4 district No. 2854, Ada-Borup, may use up to $90,000 of its 205.5 health and safety revenue for capital improvements, equipment, 205.6 or furnishings for new facilities. 205.7 Subd. 2. [LYND.] Notwithstanding Minnesota Statutes, 205.8 sections 121.912 and 121.9121, on June 30, 1998, independent 205.9 school district No. 415, Lynd, may permanently transfer $100,000 205.10 from reserve accounts in the general fund to the unreserved 205.11 general fund. The transfer may be made from the reemployment 205.12 account and the bus purchase account. Transfers from the 205.13 reemployment and bus purchase accounts may be made without 205.14 making a levy reduction. 205.15 Subd. 3. [RUSSELL.] Notwithstanding Minnesota Statutes, 205.16 section 121.912 or 121.9121, on June 30, 1998, independent 205.17 school district No. 418, Russell, may permanently transfer up to 205.18 $150,000 from its capital expenditure fund to the district's 205.19 general fund. The transfer must not include health and safety 205.20 or handicapped access revenue. 205.21 Subd. 4. [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 205.22 section 121.912 or 121.9121, on June 30, 1998, independent 205.23 school district No. 2609, Win-E-Mac, may permanently transfer 205.24 the balance of its health and safety account to its general fund. 205.25 Sec. 101. [REPEALER.] 205.26 (a) Minnesota Statutes 1996, sections 121.02, subdivisions 205.27 2a, 3, and 4; and 121.11, subdivisions 5, 7, 7b, 9, 11, 12, and 205.28 14; and Minnesota Statutes 1997 Supplement, section 121.11, 205.29 subdivision 7e, are repealed effective July 1, 1999. 205.30 (b) Minnesota Statutes 1996, section 121.11, subdivision 205.31 7d, is repealed effective January 10, 1999. 205.32 (c) Minnesota Statutes 1996, section 124.647; Minnesota 205.33 Statutes 1997 Supplement, sections 120.1015; and 169.452; are 205.34 repealed. 205.35 Sec. 102. [REVISOR INSTRUCTION.] 205.36 In the next and subsequent editions of Minnesota Statutes 206.1 and Minnesota Rules, the revisor shall change the term "state 206.2 board of education" or similar terms to the term "commissioner 206.3 of children, families, and learning" or similar terms wherever 206.4 they appear. 206.5 Sec. 103. [EFFECTIVE DATE.] 206.6 Sections 1 to 26, 29, 31 to 53, 69 to 75, 77 to 90, 92, 94, 206.7 96, and 102 are effective July 1, 1999. 206.8 Sections 27, 28, 30, 55, 98, and 99 are effective the day 206.9 following final enactment. 206.10 Section 100 is effective June 30, 1998. 206.11 Section 58 is effective July 1, 1998. 206.12 ARTICLE 7 206.13 STATE AGENCIES 206.14 Section 1. Laws 1997, First Special Session chapter 4, 206.15 article 10, section 3, subdivision 2, is amended to read: 206.16 Subd. 2. [DEPARTMENT.] For the department of children, 206.17 families, and learning: 206.18$24,360,000$24,910,000 ..... 1998 206.19$23,978,000$24,528,000 ..... 1999 206.20 (a) Any balance in the first year does not cancel but is 206.21 available in the second year. 206.22 (b) $21,000 each year is from the trunk highway fund. 206.23 (c) $622,000 in 1998 and $627,000 in 1999 is for the 206.24 academic excellence foundation. 206.25 Up to $50,000 each year is contingent upon the match of $1 206.26 in the previous year from private sources consisting of either 206.27 direct monetary contributions or in-kind contributions of 206.28 related goods or services, for each $1 of the appropriation. 206.29 The commissioner of children, families, and learning must 206.30 certify receipt of the money or documentation for the private 206.31 matching funds or in-kind contributions. The unencumbered 206.32 balance from the amount actually appropriated from the 206.33 contingent amount in 1998 does not cancel but is available in 206.34 1999. The amount carried forward must not be used to establish 206.35 a larger annual base appropriation for later fiscal years. 206.36 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 207.1 board of education. 207.2 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 207.3 of teaching. 207.4 (f) The expenditures of federal grants and aids as shown in 207.5 the biennial budget document and its supplements are approved 207.6 and appropriated and shall be spent as indicated. 207.7 (g) The department of children, families, and learning 207.8 shall develop a performance report on the quality of its 207.9 programs and services. The report must be consistent with the 207.10 process specified in Minnesota Statutes, sections 15.90 to 207.11 15.92. The goals, objectives, and measures of this report must 207.12 be developed in cooperation with the chairs of the finance 207.13 divisions of the education committees of the house of 207.14 representatives and senate, the department of finance, and the 207.15 office of legislative auditor. The report must include data to 207.16 indicate the progress of the department in meeting its goals and 207.17 objectives. 207.18 (h) At least $50,000 is to ensure compliance with state and 207.19 federal laws prohibiting discrimination because of race, 207.20 religion, or sex. The department shall use the appropriation to 207.21 provide state-level leadership on equal education opportunities 207.22 which promote elimination of discriminatory practices in the 207.23 areas of race, religion, and sex in public schools and public 207.24 educational agencies under its general supervision and on 207.25 activities including, at least, compliance monitoring and 207.26 voluntary compliance when local school district deficiencies are 207.27 found. 207.28 (i) Notwithstanding Minnesota Statutes, section 15.53, 207.29 subdivision 2, the commissioner of children, families, and 207.30 learning may contract with a school district for a period no 207.31 longer than five consecutive years to work in the development or 207.32 implementation of the graduation rule. The commissioner may 207.33 contract for services and expertise as necessary. The contracts 207.34 are not subject to Minnesota Statutes, sections 16B.06 to 16B.08. 207.35 (j) In preparing the department budget for fiscal years 207.36 2000-2001, the department shall shift all administrative funding 208.1 from aids appropriations into the appropriation for the 208.2 department. 208.3 (k) Reallocations of excesses under Minnesota Statutes, 208.4 section 124.14, subdivision 7, from appropriations within this 208.5 act shall only be made to deficiencies in programs with 208.6 appropriations contained within this act. 208.7 (l)$850,000$1,400,000 each year is for costs associated 208.8 with education adequacy litigationcostsand may only be used 208.9 for those purposes. These appropriations are one-time 208.10 only. Amounts appropriated for one year of the biennium may be 208.11 used for the other. The commissioner shall contract with an 208.12 independent facilitator to attempt mediation of the lawsuits. 208.13 (m) Collaborative efforts between the department of 208.14 children, families, and learning and the office of technology, 208.15 as specified in Minnesota Statutes, section 237A.015, include: 208.16 (1) advising the commissioner of children, families, and 208.17 learning on new and emerging technologies, potential business 208.18 partnerships, and technical standards; 208.19 (2) assisting the commissioner of children, families, and 208.20 learning in the sharing of data between state agencies relative 208.21 to children's programs; and 208.22 (3) as requested by the commissioner of children, families, 208.23 and learning, assisting in collaborative efforts for joint 208.24 prekindergarten through grade 12 and higher education projects, 208.25 including the learning network. 208.26 The commissioner of children, families, and learning shall have 208.27 final approval for prekindergarten through grade 12 programs and 208.28 lifelong learning programs, grant awards, and funding decisions. 208.29 Sec. 2. Laws 1997, First Special Session chapter 4, 208.30 article 10, section 4, is amended to read: 208.31 Sec. 4. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 208.32 CENTER FOR ARTS EDUCATION.] 208.33 The sums indicated in this section are appropriated from 208.34 the general fund to the center for arts education for the fiscal 208.35 years designated: 208.36$5,541,000$5,559,000 ..... 1998 209.1$6,054,000$6,090,000 ..... 1999 209.2 Of the fiscal year 1998 appropriation, $154,000 is to fund 209.3 artist and arts organization participation in the education 209.4 residency and education technology projects, $75,000 is for 209.5 school support for the residency project, and $121,000 is for 209.6 further development of the partners: arts and school for 209.7 students (PASS) program, including pilots. Of the fiscal year 209.8 1999 appropriation, $154,000 is to fund artist and arts 209.9 organizations participation in the education residency project, 209.10 $75,000 is for school support for the residency project, and 209.11 $121,000 is to fund the PASS program, including additional 209.12 pilots. The guidelines for the education residency project and 209.13 the pass program shall be developed and defined by the center 209.14 for arts education in cooperation with the Minnesota arts 209.15 board. The Minnesota arts board shall participate in the review 209.16 and allocation process. The center for arts education and the 209.17 Minnesota arts board shall cooperate to fund these projects. 209.18 Any balance in the first year does not cancel but is 209.19 available in the second year. 209.20 Sec. 3. Laws 1997, First Special Session chapter 4, 209.21 article 10, section 5, is amended to read: 209.22 Sec. 5. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 209.23 The sums indicated in this section are appropriated from 209.24 the general fund to the department of children, families, and 209.25 learning for the Faribault academies for the fiscal years 209.26 designated: 209.27$8,910,000$8,949,000 ..... 1998 209.28$8,908,000$8,986,000 ..... 1999 209.29 Any balance in the first year does not cancel but is 209.30 available in the second year. 209.31 In the next biennial budget, the academies must assess 209.32 their progress in meeting the established performance measures 209.33 for the Faribault academies and inform the legislature on the 209.34 content of that assessment. The information must include an 209.35 assessment of its progress by consumers and employees.