Minnesota Legislature
SF 3378
2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; prekindergarten through grade 1.3 12; providing for general education; special 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; 124.2713, subdivision 6a; 124.2727, subdivisions 1.31 6a and 6c; 124.273, by adding a subdivision; 124.32, 1.32 by adding a subdivision; 124.3201, subdivision 5; 1.33 124.646, subdivision 4; 124.755, subdivision 1; 1.34 124.83, subdivision 8; 124.84, subdivisions 3 and 4; 1.35 124.85, subdivision 4; 124.91, subdivisions 2, 4, and 1.36 6; 124.95, as amended; 124A.03, subdivision 3c; 1.37 124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 1.38 6, and by adding a subdivision; 124A.22, by adding a 1.39 subdivision; 124A.29, subdivision 1; 124A.292, 1.40 subdivision 3; 124A.30; 124C.45, subdivision 2; 1.41 124C.47; 124C.48, by adding a subdivision; 125.05, 1.42 subdivisions 4 and 8; 125.183, subdivisions 1 and 3; 1.43 125.1885, subdivisions 1, 4, and 5; 125.191; 126.237; 1.44 126.70, subdivision 2a; 127.27, subdivision 2; 1.45 128A.02, subdivisions 1, 3, 3b, 5, 6, and by adding 1.46 subdivisions; 128A.022; 128A.023, subdivisions 1 and 2.1 2; 128A.026, subdivisions 1 and 3; 128A.07, 2.2 subdivision 2; 169.448, subdivision 2; 169.451, 2.3 subdivision 5; 256B.0625, subdivision 26; 268.665, 2.4 subdivision 3; and 471.18; Minnesota Statutes 1997 2.5 Supplement, sections 16B.465, subdivision 4; 120.05, 2.6 subdivision 2; 120.064, subdivisions 3, 8, 10, and 2.7 14a; 120.1045, subdivision 1; 120.1701, subdivision 3; 2.8 121.1113, subdivision 1; 121.15, subdivision 6; 2.9 121.615, subdivisions 2, 6, 7, and 10; 121.904, 2.10 subdivision 4a; 124.17, subdivisions 1d, 4, 6, and 7; 2.11 124.195, subdivision 7; 124.248, subdivisions 2a and 2.12 6; 124.26, subdivision 2; 124.2601, subdivisions 3 and 2.13 6; 124.2711, subdivision 2a; 124.2713, subdivision 6; 2.14 124.3111, subdivision 2; 124.3201, subdivision 4; 2.15 124.6475; 124.648, subdivision 3; 124.91, subdivisions 2.16 1, 5, and 7, as amended; 124.961; 124A.036, 2.17 subdivision 5; 124A.22, subdivisions 2, 11, and 13b; 2.18 124A.23, subdivision 1; 124A.28, subdivisions 1 and 2.19 1a; 124C.46, subdivisions 1, 2; 125.05, subdivisions 2.20 1c and 2; 126.79, subdivisions 6, 7, 8, and 9; 127.27, 2.21 subdivisions 10 and 11; 127.31, subdivision 15; 2.22 127.32; 127.36, subdivision 1; 127.38; 128A.02, 2.23 subdivision 7; 169.01, subdivision 6; 169.974, 2.24 subdivision 2; 268.665, subdivision 2; and 290.0674, 2.25 subdivision 1; Laws 1992, chapter 499, article 7, 2.26 section 31; Laws 1993, chapter 224, article 3, section 2.27 32; Laws 1997, chapter 157, section 71; Laws 1997, 2.28 First Special Session chapter 4, article 1, section 2.29 61, subdivision 3; article 2, section 51, subdivisions 2.30 15, 25, 29, and 33; article 3, section 25, subdivision 2.31 4; article 4, sections 33, 34, and 35, subdivision 9; 2.32 article 5, section 28, subdivisions 9, 10, 11, and 12; 2.33 article 6, section 20, subdivision 4; article 8, 2.34 section 4, subdivision 3; article 9, section 11; 2.35 article 10, sections 3, subdivision 2; 4, and 5; 2.36 proposing coding for new law in Minnesota Statutes, 2.37 chapters 120; 123; and 124A; repealing Minnesota 2.38 Statutes 1996, sections 121.02, subdivisions 2a, 3, 2.39 and 4; 121.11, subdivisions 5, 7, 7b, 7d, 9, 11, 12, 2.40 and 14; 121.904, subdivision 4c; 124.2601, subdivision 2.41 4; 124.2713, subdivision 6b; 124.2727, subdivision 6b; 2.42 124.32, subdivision 13; 124.491; 124.492; 124.493; 2.43 124.494; 124.4945; 124.4946; 124.495; 124.647; 124.82; 2.44 124.83, subdivisions 4, 5, and 7; 124A.292, 2.45 subdivisions 2 and 4; 124C.55; 124C.56; 124C.57; 2.46 124C.60, subdivision 2; 124C.71; 124C.72; 124C.73; and 2.47 126.12; Minnesota Statutes 1997 Supplement, sections 2.48 120.1015; 121.11, subdivision 7e; 124.155, 2.49 subdivisions 1 and 2; 124.2601, subdivision 5; 2.50 124.825, subdivisions 3 and 4; 124.912, subdivisions 2 2.51 and 3; 124C.60, subdivisions 1 and 3; and 169.452; 2.52 Laws 1997, chapter 231, article 1, section 17; 2.53 Minnesota Rules, part 3525.2750, subpart 1, item B. 2.54 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.55 ARTICLE 1 2.56 GENERAL EDUCATION 2.57 Section 1. Minnesota Statutes 1997 Supplement, section 2.58 121.904, subdivision 4a, is amended to read: 2.59 Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax 2.60 settlement revenue" means the current, delinquent, and 2.61 manufactured home property tax receipts collected by the county 2.62 and distributed to the school district, including distributions3.1made pursuant to section 279.37, subdivision 7, and excluding3.2the amount levied pursuant to section 124.914, subdivision 1. 3.3 (b) In June of each year, the school district shall 3.4 recognize as revenue, in the fund for which the levy was made, 3.5 the lesser of: 3.6 (1) the May, June, and July school district tax settlement 3.7 revenue received in that calendar year; or 3.8 (2) the sum of:the state aids and credits enumerated in3.9section 124.155, subdivision 2, which are for the fiscal year3.10payable in that fiscal year plus an amount equal to the levy3.11recognized as revenue in June of the prior year plus 31 percent3.12of the amount of the levy certified in the prior calendar year3.13according to section 124A.03, subdivision 2; or3.14(3)(i) 7.0 percent of the lesser of the amount of the3.15general education levy certified in the prior calendar year3.16according to section 124A.23, subdivision 2, or the difference3.17between the amount of the total general fund levy certified in3.18the prior calendar year and the sum of the amounts certified in3.19the prior calendar year according to sections 124A.03,3.20subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1,3.21paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3,3.22paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus3.23(ii) 31 percent of the referendum levy certified in the3.24prior calendar year according to section 124A.03, subdivision 2;3.25plus3.26(iii) the entire amount of the levy certified in the prior3.27calendar year according to sections 124.315, subdivision 4;3.28124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916,3.29subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and3.30124.918, subdivision 6.3.31 (i) for levies authorized before January 1, 1998, 31 3.32 percent of the referendum levy certified in the prior calendar 3.33 year according to section 124A.03, subdivision 2; plus 3.34 (ii) the entire amount of the levy certified in the prior 3.35 calendar year according to sections 124.912, subdivisions 1, 3.36 paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 4.1 subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 4.2 124.918, subdivision 6. 4.3(c) In July of each year, the school district shall4.4recognize as revenue that portion of the school district tax4.5settlement revenue received in that calendar year and not4.6recognized as revenue for the previous fiscal year pursuant to4.7clause (b).4.8(d) All other school district tax settlement revenue shall4.9be recognized as revenue in the fiscal year of the settlement.4.10Portions of the school district levy assumed by the state,4.11including prior year adjustments and the amount to fund the4.12school portion of the reimbursement made pursuant to section4.13273.425, shall be recognized as revenue in the fiscal year4.14beginning in the calendar year for which the levy is payable.4.15 Sec. 2. Minnesota Statutes 1996, section 121.908, 4.16 subdivision 2, is amended to read: 4.17 Subd. 2. Each district shall submit to the commissioner by 4.18AugustSeptember 15 of each yearanunaudited financial 4.19statementdata for the preceding fiscal year.This statement4.20 These financial data shall be submittedon formsin the format 4.21 prescribed by the commissioner. 4.22 Sec. 3. Minnesota Statutes 1996, section 121.908, 4.23 subdivision 3, is amended to read: 4.24 Subd. 3. ByDecember 31November 30 of the calendar year 4.25 of the submission of the unaudited financialstatementdata, the 4.26 district shall provide to the commissionerand state auditor an4.27 audited financial data for the preceding fiscal year. An 4.28 audited financial statement prepared in a form which will allow 4.29 comparison with and correction of material differences in the 4.30 unauditedstatementfinancial data shall be submitted to the 4.31 commissioner and the state auditor by November 30. The audited 4.32 financial statement must also provide a statement of assurance 4.33 pertaining to uniform financial accounting and reporting 4.34 standards compliance and a copy of the management letter 4.35 submitted to the district by the school district's auditor. 4.36 Sec. 4. Minnesota Statutes 1997 Supplement, section 5.1 124.17, subdivision 1d, is amended to read: 5.2 Subd. 1d. [COMPENSATION REVENUE PUPIL UNITS.] Compensation 5.3 revenue pupil units for fiscal year 1998 and thereafter must be 5.4 computed according to this subdivision. 5.5 (a) The compensation revenue concentration percentage for 5.6 each building in a district equals the product of 100 times the 5.7 ratio of: 5.8 (1) the sum of the number of pupils enrolled in the 5.9 building eligible to receive free lunch plus one-half of the 5.10 pupils eligible to receive reduced priced lunch on October 1 of 5.11 the previous fiscal year; to 5.12 (2) the number of pupils enrolled in the building on 5.13 October 1 of the previous fiscal year. 5.14 (b) The compensation revenue pupil weighting factor for a 5.15 building equals the lesser of one or the quotient obtained by 5.16 dividing the building's compensation revenue concentration 5.17 percentage by 80.0. 5.18 (c) The compensation revenue pupil units for a building 5.19 equals the product of: 5.20 (1) the sum of the number of pupils enrolled in the 5.21 building eligible to receive free lunch and one-half of the 5.22 pupils eligible to receive reduced priced lunch on October 1 of 5.23 the previous fiscal year; times 5.24 (2) the compensation revenue pupil weighting factor for the 5.25 building; times 5.26 (3) .60. 5.27 (d) Notwithstanding paragraphs (a) to (c), for charter 5.28 schools and contracted alternative programs in the first year of 5.29 operation, compensation revenue pupil units shall be computed 5.30 using data for the current fiscal year. If the charter school 5.31 or contracted alternative program begins operation after October 5.32 1, compensatory revenue pupil units shall be computed based on 5.33 pupils enrolled on an alternate date determined by the 5.34 commissioner, and the compensation revenue pupil units shall be 5.35 prorated based on the ratio of the number of days of student 5.36 instruction to 170 days. 6.1 (e) The percentages in this subdivision must be based on 6.2 the count of individual pupils and not on a building average or 6.3 minimum. 6.4 (f) For a school district in which the number of pupils 6.5 enrolled on October 1 of the current fiscal year exceeds the 6.6 number of pupils enrolled on October 1 of the previous fiscal 6.7 year by more than ten percent, the compensation revenue pupil 6.8 units for each building equals the product of the compensation 6.9 revenue pupil units according to paragraph (c) times an amount 6.10 equal to the difference between (i) the ratio of the number of 6.11 pupils enrolled in the district on October 1 of the current 6.12 fiscal year to the number of pupils enrolled in the district on 6.13 October 1 of the previous fiscal year and (ii) .10. 6.14 Sec. 5. Minnesota Statutes 1997 Supplement, section 6.15 124.17, subdivision 4, is amended to read: 6.16 Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 6.17 enrolled in a learning year program under section 121.585, an 6.18 area learning center under sections 124C.45 and 124C.46,oran 6.19 alternative program approved by the commissioner, or a contract 6.20 alternative program under section 126.22, subdivision 3, 6.21 paragraph (d), or subdivision 3a, for more than 1,020 hours in a 6.22 school year for a secondary student, more than 935 hours in a 6.23 school year for an elementary student, or more than 425 hours in 6.24 a school year for a kindergarten student without a disability, 6.25 that pupil may be counted as more than one pupil in average 6.26 daily membership. The amount in excess of one pupil must be 6.27 determined by the ratio of the number of hours of instruction 6.28 provided to that pupil in excess of: (i) the greater of 1,020 6.29 hours or the number of hours required for a full-time secondary 6.30 pupil in the district to 1,020 for a secondary pupil; (ii) the 6.31 greater of 935 hours or the number of hours required for a 6.32 full-time elementary pupil in the district to 935 for an 6.33 elementary pupil in grades 1 through 6; and (iii) the greater of 6.34 425 hours or the number of hours required for a full-time 6.35 kindergarten student without a disability in the district to 425 6.36 for a kindergarten student without a disability. Hours that 7.1 occur after the close of the instructional year in June shall be 7.2 attributable to the following fiscal year. A kindergarten 7.3 student must not be counted as more than 1.2 pupils in average 7.4 daily membership under this subdivision. 7.5 (b)(i) To receive general education revenue for a pupil in 7.6 an alternative program that has an independent study component, 7.7 a school district must meet the requirements in this paragraph. 7.8 The school district must develop with the pupil a continual 7.9 learning plan for the pupil. A district must allow a minor 7.10 pupil's parent or guardian to participate in developing the 7.11 plan, if the parent or guardian wants to participate. The plan 7.12 must identify the learning experiences and expected outcomes 7.13 needed for satisfactory credit for the year and for graduation. 7.14 The plan must be updated each year. Each school district that 7.15 has a state-approved public alternative program must reserve 7.16 revenue in an amount equal to at least 90 percent of the 7.17 district average general education revenue per pupil unit less 7.18 compensatory revenue per pupil unit times the number of pupil 7.19 units generated by students attending a state-approved public 7.20 alternative program. The amount of reserved revenue available 7.21 under this subdivision may only be spent for program costs 7.22 associated with the state-approved public alternative program. 7.23 Compensatory revenue must be allocated according to section 7.24 124A.28, subdivision 1a. 7.25 (ii) General education revenue for a pupil in an approved 7.26 alternative program without an independent study component must 7.27 be prorated for a pupil participating for less than a full year, 7.28 or its equivalent. Each school district that has a 7.29 state-approved public alternative program must reserve revenue 7.30 in an amount equal to at least 90 percent of the district 7.31 average general education revenue per pupil unit less 7.32 compensatory revenue per pupil unit times the number of pupil 7.33 units generated by students attending a state-approved public 7.34 alternative program. The amount of reserved revenue available 7.35 under this subdivision may only be spent for program costs 7.36 associated with the state-approved public alternative program. 8.1 Compensatory revenue must be allocated according to section 8.2 124A.28, subdivision 1a. 8.3 (iii) General education revenue for a pupil in an approved 8.4 alternative program that has an independent study component must 8.5 be paid for each hour of teacher contact time and each hour of 8.6 independent study time completed toward a credit or graduation 8.7 standards necessary for graduation. Average daily membership 8.8 for a pupil shall equal the number of hours of teacher contact 8.9 time and independent study time divided by 1,020. 8.10 (iv) For an alternative program having an independent study 8.11 component, the commissioner shall require a description of the 8.12 courses in the program, the kinds of independent study involved, 8.13 the expected learning outcomes of the courses, and the means of 8.14 measuring student performance against the expected outcomes. 8.15 Sec. 6. Minnesota Statutes 1997 Supplement, section 8.16 124.17, subdivision 6, is amended to read: 8.17 Subd. 6. [FREE AND REDUCED PRICED LUNCHES.] The 8.18 commissioner shall determine the number of children eligible to 8.19 receive either a free or reduced priced lunch on October 1 each 8.20 year. Children enrolled in a building on October 1 and 8.21 determined to be eligible to receive free or reduced price lunch 8.22 by January 15 of the following year shall be counted as eligible 8.23 on October 1 for purposes of subdivision 1d. The commissioner 8.24 may use federal definitions for these purposes and may adjust 8.25 these definitions as appropriate. The commissioner may adopt 8.26 reporting guidelines to assure accuracy of data counts and 8.27 eligibility. Districts shall use any guidelines adopted by the 8.28 commissioner. 8.29 Sec. 7. Minnesota Statutes 1997 Supplement, section 8.30 124.17, subdivision 7, is amended to read: 8.31 Subd. 7. [LEP PUPIL UNITS.] (a) Limited English 8.32 proficiency pupil units for fiscal year 1998 and thereafter 8.33 shall be determined according to this subdivision. 8.34 (b) The limited English proficiency concentration 8.35 percentage for a district equals the product of 100 times the 8.36 ratio of: 9.1 (1) the number of pupils of limited English proficiency 9.2 enrolled in the district during the current fiscal year; to 9.3 (2) the number of pupils in average daily membership 9.4 enrolled in the district. 9.5 (c) The limited English proficiency pupil units for each 9.6 pupil enrolled in a program for pupils of limited English 9.7 proficiency in accordance with sections 126.261 to 126.269 9.8 equals the lesser of one or the quotient obtained by dividing 9.9 the limited English proficiency concentration percentage for the 9.10 pupil's district of enrollment by 11.5. 9.11 (d) Limited English proficiency pupil units shall be 9.12 counted by the district of enrollment. 9.13 (e) Notwithstanding paragraph (d), for the purposes of this 9.14 subdivision, pupils enrolled in a cooperative or intermediate 9.15 school district shall be counted by the district of residence. 9.16 Sec. 8. Minnesota Statutes 1997 Supplement, section 9.17 124.195, subdivision 7, is amended to read: 9.18 Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 9.19 fiscal year state general fund payments for a district 9.20 nonoperating fund shall be made at 90 percent of the estimated 9.21 entitlement during the fiscal year of the entitlement. This 9.22 amount shall be paid in 12 equal monthly installments. The 9.23 amount of the actual entitlement, after adjustment for actual 9.24 data, minus the payments made during the fiscal year of the 9.25 entitlement shall be paid prior to October 31 of the following 9.26 school year. The commissioner may make advance payments of debt 9.27 service equalization aid or homestead and agricultural credit 9.28 aid for a district's debt service fund earlier than would occur 9.29 under the preceding schedule if the district submits evidence 9.30 showing a serious cash flow problem in the fund. The 9.31 commissioner may make earlier payments during the year and, if 9.32 necessary, increase the percent of the entitlement paid to 9.33 reduce the cash flow problem. 9.34 Sec. 9. Minnesota Statutes 1996, section 124.248, 9.35 subdivision 1, is amended to read: 9.36 Subdivision 1. [GENERAL EDUCATION REVENUE.] General 10.1 education revenue shall be paid to a charter school as though it 10.2 were a school district. The general education revenue for each 10.3 pupil unit is the state average general education revenue per 10.4 pupil unit minus$170an amount equal to the product of the 10.5 formula allowance according to section 124A.22, subdivision 2, 10.6 times .0485, calculated withoutcompensatorybasic skills 10.7 revenue, transportation sparsity revenue, and the transportation 10.8 portion of the transition revenue adjustment, pluscompensatory10.9 basic skills revenue as though the school were a school district. 10.10 Sec. 10. Minnesota Statutes 1996, section 124.248, 10.11 subdivision 1a, is amended to read: 10.12 Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue 10.13 shall be paid to a charter school that provides transportation 10.14 services according to section 120.064, subdivision 15, according 10.15 to this subdivision. Transportation aid shall equal 10.16 transportation revenue. 10.17(a)In addition to the revenue under subdivision 1, a 10.18 charter school providing transportation services shall receive 10.19 general education aid for each pupil unit equal to the sum of 10.20$170an amount equal to the product of the formula allowance 10.21 according to section 124A.22, subdivision 2, times .0485, plus 10.22 the transportation sparsity allowance for the school district in 10.23 which the charter school is located, plus the transportation 10.24 transition allowance for the school district in which the 10.25 charter school is located. 10.26(b) For the first two years that a charter school is10.27providing transportation services, the special programs10.28transportation revenue equals the charter school's actual cost10.29in the current school year for transportation services for10.30children with disabilities under section 124.223, subdivisions10.314, 5, 7, and 8. For the third year of transportation services10.32and later fiscal years, the special programs transportation10.33revenue shall be computed according to section 124.225,10.34subdivision 14.10.35 Sec. 11. Minnesota Statutes 1997 Supplement, section 10.36 124.248, subdivision 2a, is amended to read: 11.1 Subd. 2a. [BUILDING LEASE AID.] When a charter school 11.2 finds it economically advantageous to rent or lease a building 11.3 or land for any instructional purposes and it determines that 11.4 the total operating capital revenue under section 124A.22, 11.5 subdivision 10, is insufficient for this purpose, it may apply 11.6 to the commissioner for building lease aid for this purpose. 11.7 Criteria for aid approval and revenue uses shall be as defined 11.8 for the building lease levy in section 124.91, subdivision 1, 11.9 paragraphs (a) and (b). The amount of building lease aid per 11.10 pupil unit served for a charter school for any year shall not 11.11 exceed the lesser of (a) 80 percent of the approved cost or (b) 11.12 the product of theactualpupil units served for the current 11.13 school year times the sum of the state average debt redemption 11.14 fund revenue plus capital revenue, according to section 124.91, 11.15 peractualpupil unit served for the current fiscal year. 11.16 Sec. 12. Minnesota Statutes 1997 Supplement, section 11.17 124.248, subdivision 6, is amended to read: 11.18 Subd. 6. [START-UP COSTS.] During the first two years of a 11.19 charter school's operation, the charter school is eligible for 11.20 aid to pay for start-up costs and additional operating costs. 11.21 Start-up cost aid equals the greater of: 11.22 (1) $50,000 per charter school; or 11.23 (2) $500 times the charter school's pupil units served for 11.24 that year. 11.25 Sec. 13. Minnesota Statutes 1997 Supplement, section 11.26 124.2601, subdivision 3, is amended to read: 11.27 Subd. 3. [REVENUEAID.] Adult basic educationrevenueaid 11.28 for each approved program equals 65 percent of the general 11.29 education formula allowance times the number of full-time 11.30 equivalent students in its adult basic education program. 11.31 Sec. 14. Minnesota Statutes 1997 Supplement, section 11.32 124.2601, subdivision 6, is amended to read: 11.33 Subd. 6. [AID GUARANTEE.](a) For fiscal year 1994, any11.34adult basic education program that receives less state aid under11.35subdivisions 3 and 7 than from the aid formula for fiscal year11.361992 shall receive the amount of aid it received in fiscal year12.11992.12.2(b) For 1995, 1996, and 1997 fiscal years, an adult basic12.3education program that receives aid shall receive at least the12.4amount of aid it received in fiscal year 1992 under subdivisions12.53 and 7, plus aid equal to the amount of revenue that would have12.6been raised for taxes payable in 1994 under Minnesota Statutes12.71992, section 124.2601, subdivision 4, minus the amount raised12.8under subdivision 4.12.9(c)For fiscal year 1998, any adult basic education program 12.10 that receives less state aid than in fiscal year 1997 shall 12.11 receive additional aid equal to 80 percent of the difference 12.12 between its 1997 aid and the amount of aid under section 12.13 124.2601, subdivision 5. For fiscal year 1999 and later, 12.14 additional aid under this paragraphmust be reduced by 2012.15percent each yearequals 80 percent of the additional aid 12.16 computed for fiscal year 1998. For fiscal year 2000, the 12.17 additional aid under this paragraph equals 60 percent of the 12.18 additional aid computed for fiscal year 1998. For fiscal year 12.19 2001, the additional aid under this paragraph equals 40 percent 12.20 of the additional aid computed for fiscal year 1998. For fiscal 12.21 year 2002, the additional aid under this paragraph equals 20 12.22 percent of the additional aid computed for fiscal year 1998. 12.23 For fiscal year 2003 and later, the additional aid under this 12.24 paragraph equals zero. 12.25 Sec. 15. Minnesota Statutes 1997 Supplement, section 12.26 124.2711, subdivision 2a, is amended to read: 12.27 Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 12.28 obtain early childhood family education revenue, a district may 12.29 levy an amount equal to the tax rate of.653.45 percent times 12.30 the adjusted tax capacity of the district for the year preceding 12.31 the year the levy is certified. If the amount of the early 12.32 childhood family education levy would exceed the early childhood 12.33 family education revenue, the early childhood family education 12.34 levy shall equal the early childhood family education revenue. 12.35 Sec. 16. Minnesota Statutes 1997 Supplement, section 12.36 124.2713, subdivision 6, is amended to read: 13.1 Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community 13.2 education revenue, a district may levy the amount raised by a 13.3 tax rate of1.09.41 percent times the adjusted net tax capacity 13.4 of the district. If the amount of the community education levy 13.5 would exceed the community education revenue, the community 13.6 education levy shall be determined according to subdivision 6a. 13.7 Sec. 17. Minnesota Statutes 1996, section 124.2713, 13.8 subdivision 6a, is amended to read: 13.9 Subd. 6a. [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 13.10 FORMULA.] If the amount of the community education levy for a 13.11 district exceeds the district's community education revenue, the 13.12 amount of the community education levy is limited tothe sum of:13.13(1)the district's community education revenue according to 13.14 subdivision 1; plus. 13.15(2) the amount of the aid reduction for the same fiscal13.16year according to subdivision 6b.13.17For purposes of statutory cross-reference, a levy made13.18according to this subdivision is the levy made according to13.19subdivision 6.13.20 Sec. 18. Minnesota Statutes 1996, section 124.2727, 13.21 subdivision 6a, is amended to read: 13.22 Subd. 6a. [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] 13.23 A district's cooperation revenue for fiscal year 1999 is equal 13.24 to the greater of $67 times the actual pupil units or $25,000. 13.25 Sec. 19. Minnesota Statutes 1996, section 124.2727, 13.26 subdivision 6c, is amended to read: 13.27 Subd. 6c. [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A 13.28 district's cooperation aid for fiscal year 1999 is the 13.29 difference between its district cooperation revenue and its 13.30 district cooperation levy. If a district does not levy the 13.31 entire amount permitted, aid must be reduced in proportion to 13.32 the actual amount levied. 13.33 Sec. 20. Minnesota Statutes 1996, section 124.273, is 13.34 amended by adding a subdivision to read: 13.35 Subd. 8. [ALLOCATIONS FROM COOPERATIVE UNITS.] For the 13.36 purposes of this section and section 124.321, pupils of limited 14.1 English proficiency enrolled in a cooperative or intermediate 14.2 school district unit shall be counted by the school district of 14.3 residence, and the cooperative unit shall allocate its approved 14.4 expenditures for limited English proficiency programs among 14.5 participating school districts. Limited English proficiency aid 14.6 for services provided by a cooperative or intermediate school 14.7 district shall be paid to the participating school districts. 14.8 Sec. 21. Minnesota Statutes 1996, section 124.85, 14.9 subdivision 4, is amended to read: 14.10 Subd. 4. [DISTRICT ACTION.] A district may enter into a 14.11 guaranteed energy savings contract with a qualified provider if, 14.12 after review of the report and the commissioner's evaluation if 14.13 requested, the board finds that the amount it would spend on the 14.14 energy conservation measures recommended in the report is not 14.15 likely to exceed the amount to be saved in energy and operation 14.16 costs over 15 years from the date of installation if the 14.17 recommendations in the report were followed, and the qualified 14.18 provider provides a written guarantee that the energy or 14.19 operating cost savings will meet or exceed the costs of the 14.20 system. The guaranteed energy savings contract may provide for 14.21 payments over a period of time, not to exceed 15 years. 14.22 Notwithstanding section 121.912, a district annually may 14.23 transfer from the general fund to thecapital expenditure fund14.24 reserve for operating capital account an amount up to the amount 14.25 saved in energy and operation costs as a result of guaranteed 14.26 energy savings contracts. 14.27 Sec. 22. Minnesota Statutes 1996, section 124.3201, 14.28 subdivision 5, is amended to read: 14.29 Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 14.30 A school district's special education revenue for fiscal year 14.31 1996 and later equals the state total special education revenue, 14.32 minus the amount determined under paragraph (b), times the ratio 14.33 of the district's adjusted special education base revenue to the 14.34 state total adjusted special education base revenue. If the 14.35 state board of education modifies its rules for special 14.36 education in a manner that increases a school district's special 15.1 education obligations or service requirements, the commissioner 15.2 of children, families, and learning shall annually increase each 15.3 district's special education revenue by the amount necessary to 15.4 compensate for the increased service requirements. The 15.5 additional revenue equals the cost in the current year 15.6 attributable to rule changes not reflected in the computation of 15.7 special education base revenue, multiplied by the appropriate 15.8 percentages from subdivision 2. 15.9 (b) Notwithstanding paragraph (a), if the special education 15.10 base revenue for a district equals zero, the special education 15.11 revenue equals the amount computed according to subdivision 2 15.12 using current year data. 15.13 (c) Notwithstanding paragraphs (a) and (b), if the special 15.14 education base revenue for a district is greater than zero, and 15.15 the base year amount for the district under subdivision 2, 15.16 paragraph (a), clause (7), equals zero, the special education 15.17 revenue equals the sum of the amount computed according to 15.18 paragraph (a), plus the amount computed according to subdivision 15.19 2, paragraph (a), clause (7), using current year data. 15.20 Sec. 23. Minnesota Statutes 1996, section 124A.03, 15.21 subdivision 3c, is amended to read: 15.22 Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] (a) For fiscal 15.23 year 1998and later, a district's referendum allowance for 15.24 referendum authority under subdivision 1c is reduced as provided 15.25 in thissubdivisionparagraph. 15.26(a)(1) For referendum revenue authority approved before 15.27 June 1, 1996, and effective for fiscal year 1997, the reduction 15.28 equals the amount of the reduction computed for fiscal year 1997 15.29 under subdivision 3b. 15.30(b)(2) For referendum revenue authority approved before 15.31 June 1, 1996, and effective beginning in fiscal year 1998, the 15.32 reduction equals the amount of the reduction computed for fiscal 15.33 year 1998 under subdivision 3b. 15.34 (b) For fiscal year 1999 and later, a district's referendum 15.35 allowance for referendum authority under subdivision 1c equals 15.36 the amount of the reduction computed for fiscal year 1998 under 16.1 paragraph (a) times the lesser of one or the ratio of the 16.2 referendum allowance for the district to the amount determined 16.3 in subdivision 1c, clause (2), for fiscal year 1999. 16.4 (c) For referendum revenue authority approved after May 31, 16.5 1996, there is no reduction. 16.6 (d) For districts with more than one referendum authority, 16.7 the reduction shall be computed separately for each authority. 16.8 The reduction shall be applied first to authorities levied 16.9 against tax capacity, and then to authorities levied against 16.10 referendum market value. For districts with more than one 16.11 authority levied against net tax capacity or against referendum 16.12 market value, the referendum allowance reduction shall be 16.13 applied first to the authority with the earliest expiration date. 16.14 (e) When referendum authority approved before June 1, 1996, 16.15 expires, the referendum allowance reduction for a district shall 16.16 be decreased by the amount of the decline in the district's 16.17 total referendum allowance under subdivision 1c. For districts 16.18 with more than one referendum authority remaining after the 16.19 expiration, the amount of any remaining allowance reduction 16.20 shall be reallocated among the remaining referendum authority 16.21 approved before June 1, 1996, according to paragraph (d). 16.22 (f) For a newly reorganized district created after July 1, 16.23 1996, the referendum revenue reduction equals the lesser of the 16.24 amount calculated for the combined district, or the sum of the 16.25 amounts by which each of the reorganizing district's 16.26 supplemental revenue reduction exceeds its respective 16.27 supplemental revenue allowances calculated for the year 16.28 preceding the year of reorganization. 16.29 Sec. 24. Minnesota Statutes 1997 Supplement, section 16.30 124A.036, subdivision 5, is amended to read: 16.31 Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 16.32 education aid for districts must be adjusted for each pupil 16.33 attending a nonresident district under sections 120.062, 16.34 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. 16.35 The adjustments must be made according to this subdivision. 16.36 (a) General education aid paid to a resident district must 17.1 be reduced by an amount equal to the general education revenue 17.2 exclusive ofcompensatorybasic skills revenue attributable to 17.3 the pupil in the resident district. 17.4 (b) General education aid paid to a district serving a 17.5 pupil in programs listed in this subdivision shall be increased 17.6 by an amount equal to the general education revenue exclusive of 17.7compensatorybasic skills revenue attributable to the pupil in 17.8 the nonresident district. 17.9 (c) If the amount of the reduction to be made from the 17.10 general education aid of the resident district is greater than 17.11 the amount of general education aid otherwise due the district, 17.12 the excess reduction must be made from other state aids due the 17.13 district. 17.14 (d) The district of residence shall pay tuition to a 17.15 district or an area learning center, operated according to 17.16 paragraph (e), providing special instruction and services to a 17.17 pupil with a disability, as defined in section 120.03, or a 17.18 pupil, as defined in section 120.181, who is enrolled in a 17.19 program listed in this subdivision. The tuition shall be equal 17.20 to (1) the actual cost of providing special instruction and 17.21 services to the pupil, including a proportionate amount for debt 17.22 service and for capital expenditure facilities and equipment, 17.23 and debt service but not including any amount for 17.24 transportation, minus (2) the amount of general education aid 17.25 and special education aid, attributable to that pupil, that is 17.26 received by the district providing special instruction and 17.27 services. 17.28 (e) An area learning center operated by a service 17.29 cooperative, intermediate district, education district, or a 17.30 joint powers cooperative may elect through the action of the 17.31 constituent boards to charge tuition for pupils rather than to 17.32 calculate general education aid adjustments under paragraph (a), 17.33 (b), or (c). The tuition must be equal to the greater of the 17.34 average general education revenue per pupil unit attributable to 17.35 the pupil, or the actual cost of providing the instruction, 17.36 excluding transportation costs, if the pupil meets the 18.1 requirements of section 120.03 or 120.181. 18.2 Sec. 25. Minnesota Statutes 1996, section 124A.036, 18.3 subdivision 6, is amended to read: 18.4 Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid 18.5 for districts must be adjusted for each pupil attending a 18.6 charter school under section 120.064. The adjustments must be 18.7 made according to this subdivision. 18.8 (b) General education aid paid to a resident district must 18.9 be reduced by an amount equal to the general education revenue 18.10 exclusive ofcompensatorybasic skills revenue. 18.11 (c) General education aid paid to a district in which a 18.12 charter school not providing transportation according to section 18.13 120.064, subdivision 15, is located shall be increased by an 18.14 amount equal to the product of: (1) the sum of$170an amount 18.15 equal to the product of the formula allowance according to 18.16 section 124A.22, subdivision 2, times .0485, plus the 18.17 transportation sparsity allowance for the district, plus the 18.18 transportation transition allowance for the district; times (2) 18.19 the pupil units attributable to the pupil. 18.20 (d) If the amount of the reduction to be made from the 18.21 general education aid of the resident district is greater than 18.22 the amount of general education aid otherwise due the district, 18.23 the excess reduction must be made from other state aids due the 18.24 district. 18.25 Sec. 26. Minnesota Statutes 1996, section 124A.22, is 18.26 amended by adding a subdivision to read: 18.27 Subd. 2b. [WAIVER.] A district receiving less than an 18.28 inflationary increase as determined by the Consumer Price Index, 18.29 in revenue per pupil in average daily membership, excluding 18.30 capital bond proceeds, in the current biennium over the previous 18.31 biennium is exempt from compliance with state statutes and rules 18.32 applicable to schools and school districts until the district 18.33 receives an increase in revenue per pupil in average daily 18.34 membership equal to or greater than the rate of inflation. An 18.35 exempted school district must comply with the requirements for 18.36 charter schools in section 120.064, subdivisions 8 and 10. An 19.1 exempted district must comply with chapter 179A, and sections 19.2 125.12 and 125.17. 19.3 Sec. 27. Minnesota Statutes 1997 Supplement, section 19.4 124A.22, subdivision 2, is amended to read: 19.5 Subd. 2. [BASIC REVENUE.] The basic revenue for each 19.6 district equals the formula allowance times the actual pupil 19.7 units for the school year. The formula allowance for fiscal 19.8 year 1997 is $3,505. The formula allowance for fiscal year 1998 19.9 is $3,581 and the formula allowance for fiscal year 1999and19.10subsequent fiscal yearsis $3,530. The formula allowance for 19.11 fiscal year 2000 and subsequent fiscal years is $3,597. 19.12 Sec. 28. Minnesota Statutes 1997 Supplement, section 19.13 124A.22, subdivision 13b, is amended to read: 19.14 Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's 19.15 transportation transition allowance for fiscal year 1998 and 19.16 later equals the result of the following: 19.17 (1) if the result in subdivision 13a, paragraph (a), clause 19.18 (iii), for fiscal year 1998 is less than the fiscal year 1996 19.19 base allowance, the transportation transition allowance equals 19.20 the fiscal year 1996 base allowance minus the result in 19.21 subdivision 13a, paragraph (a), clause (iii); or 19.22 (2) if the result in subdivision 13a, paragraph (a), clause 19.23 (iii), for fiscal year 1998 and later is greater than or equal 19.24 to the fiscal year 1996 base allowance, the transportation 19.25 transition allowance equals zero. 19.26 (b)For fiscal years 1997 and 1998, a district's training19.27and experience transition allowance is equal to the training and19.28experience revenue the district would have received under19.29Minnesota Statutes 1994, section 124A.22, subdivision 4, divided19.30by the actual pupil units for fiscal year 1997 minus $130. For19.31fiscal year 1999 and later, a district's training and experience19.32transition allowance equals zero.19.33If the training and experience transition allowance is less19.34than zero, the reduction shall be determined according to the19.35following schedule:19.36(1) for fiscal year 1997, the reduction is equal to .920.1times the amount initially determined;20.2(2) for fiscal year 1998, the reduction is equal to .7520.3times the amount initially determined; and20.4(c)A district'stransitioncompensatory transition 20.5 allowance equals the greater of zero or the difference between: 20.6 (1) the amount of compensatory revenue the district would 20.7 have received under subdivision 3 for fiscal year 1998 computed 20.8 using a basic formula allowance of $3,281; and 20.9 (2) the amount the district receives under subdivision 3; 20.10 divided by 20.11 (3) the district's actual pupil units for fiscal year 1998. 20.12 (c) A district's cooperation transition allowance for 20.13 fiscal year 2000 and later equals the greater of zero or the 20.14 difference between: 20.15 (1) $25,000; and 20.16 (2) $67 times the district's actual pupil units for fiscal 20.17 year 2000. 20.18 (d)A district's transition allowance for fiscal year 199820.19is equal to the sum of its transportation transition allowance,20.20its training and experience transition allowance, and its20.21transition compensatory allowance.A district's transition 20.22 allowance for fiscal year 1999and thereafteris equal to the 20.23 sum of its transportation transition allowance and its 20.24transitioncompensatory transition allowance. A district's 20.25 transition allowance for fiscal year 2000 and thereafter is 20.26 equal to the sum of its transportation transition allowance, its 20.27 compensatory transition allowance, and its cooperation 20.28 transition allowance. 20.29 Sec. 29. [124A.226] [RESERVED REVENUE FOR DISTRICT 20.30 COOPERATION.] 20.31 A district that was a member of an intermediate school 20.32 district organized pursuant to chapter 136D on July 1, 1996, 20.33 must place a portion of its general education revenue in a 20.34 reserved account for instructional services from entities formed 20.35 for cooperative services for special education programs and 20.36 secondary vocational programs. The amount reserved is equal to 21.1 the levy made according to Minnesota Statutes 1993, section 21.2 124.2727, subdivision 6, for taxes payable in 1994 divided by 21.3 the actual pupil units in the intermediate school district for 21.4 fiscal year 1995 times the number of actual pupil units in the 21.5 school district in 1995. The district must use 5/11 of the 21.6 revenue for special education and 6/11 of the revenue for 21.7 secondary vocational education. The district must demonstrate 21.8 that the revenue is being used to provide the full range of 21.9 special education and secondary vocational programs and services 21.10 available to each child served by the intermediate. The 21.11 secondary vocational programs and services must meet the 21.12 requirements established in an articulation agreement developed 21.13 between the state board of education and the board of trustees 21.14 of the Minnesota state colleges and universities. 21.15 A district that was a member of an education district 21.16 organized pursuant to section 122.91 on July 1, 1999, must place 21.17 a portion of its general education revenue in a reserve account 21.18 for instructional services from entities formed for cooperative 21.19 services. Services may include secondary vocational programs, 21.20 special education programs, staff development, and gifted and 21.21 talented instruction. The amount reserved is equal to $50 per 21.22 pupil unit times the actual number of pupil units in the 21.23 district. 21.24 Sec. 30. Minnesota Statutes 1997 Supplement, section 21.25 124A.23, subdivision 1, is amended to read: 21.26 Subdivision 1. [GENERAL EDUCATION TAX RATE.] The 21.27 commissioner shall establish the general education tax rate by 21.28 July 1 of each year for levies payable in the following year. 21.29 The general education tax capacity rate shall be a rate, rounded 21.30 up to the nearest hundredth of a percent, that, when applied to 21.31 the adjusted net tax capacity for all districts, raises the 21.32 amount specified in this subdivision. The general education tax 21.33 rate shall be the rate that raises$1,359,000,000 for fiscal21.34year 1998 and$1,385,500,000 for fiscal year 1999 21.35 and $1,331,200,000 for fiscal year 2000 and later fiscal years. 21.36 The general education tax rate may not be changed due to changes 22.1 or corrections made to a district's adjusted net tax capacity 22.2 after the tax rate has been established. If the levy target for 22.3 fiscal year19992000 is changed by another law enacted during 22.4 the19971998 session, the commissioner shall reduce the target 22.5 in this bill by the amount of the reduction in the enacted law. 22.6 Sec. 31. Minnesota Statutes 1996, section 124A.292, 22.7 subdivision 3, is amended to read: 22.8 Subd. 3. [STAFF DEVELOPMENT LEVY.] A district's levy 22.9 equalsits revenue times the lesser of one or the ratio of:22.10(1) the quotient derived by dividing the district's22.11adjusted net tax capacity for the year before the year the levy22.12is certified by the district's actual pupil units for the school22.13year to which the levy is attributable, to22.14(2) the equalizing factor for the school year to which the22.15levy is attributablethe number of teachers at the site times 22.16 $8.15. 22.17 Sec. 32. Minnesota Statutes 1997 Supplement, section 22.18 124A.28, subdivision 1, is amended to read: 22.19 Subdivision 1. [USE OF THE REVENUE.] The compensatory 22.20 education revenue under section 124A.22, subdivision 3, and the 22.21 portion of the transition revenue adjustment under section 22.22 124A.22, subdivision 13c, attributable to the compensatory 22.23 transition allowance under section 124A.22, subdivision 13b, 22.24 paragraph (b), must be used to meet the educational needs of 22.25 pupils who enroll under-prepared to learn and whose progress 22.26 toward meeting state or local content or performance standards 22.27 is below the level that is appropriate for learners of their 22.28 age. Any of the following may be provided to meet these 22.29 learners' needs: 22.30 (1) direct instructional services under the assurance of 22.31 mastery program according to section 124.3111; 22.32 (2) remedial instruction in reading, language arts, 22.33 mathematics, other content areas, or study skills to improve the 22.34 achievement level of these learners; 22.35 (3) additional teachers and teacher aides to provide more 22.36 individualized instruction to these learners through individual 23.1 tutoring, lower instructor-to-learner ratios, or team teaching; 23.2 (4) a longer school day or week during the regular school 23.3 year or through a summer program that may be offered directly by 23.4 the site or under a performance-based contract with a 23.5 community-based organization; 23.6 (5) comprehensive and ongoing staff development consistent 23.7 with district and site plans according to section 126.70, for 23.8 teachers, teacher aides, principals, and other personnel to 23.9 improve their ability to identify the needs of these learners 23.10 and provide appropriate remediation, intervention, 23.11 accommodations, or modifications; 23.12 (6) instructional materials and technology appropriate for 23.13 meeting the individual needs of these learners; 23.14 (7) programs to reduce truancy, encourage completion of 23.15 high school, enhance self-concept, provide health services, 23.16 provide nutrition services, provide a safe and secure learning 23.17 environment, provide coordination for pupils receiving services 23.18 from other governmental agencies, provide psychological services 23.19 to determine the level of social, emotional, cognitive, and 23.20 intellectual development, and provide counseling services, 23.21 guidance services, and social work services; 23.22 (8) bilingual programs, bicultural programs, and programs 23.23 for learners of limited English proficiency; 23.24 (9) all day kindergarten; 23.25 (10) extended school day and extended school year programs; 23.26 (11) substantial parent involvement in developing and 23.27 implementing remedial education or intervention plans for a 23.28 learner, including learning contracts between the school, the 23.29 learner, and the parent that establish achievement goals and 23.30 responsibilities of the learner and the learner's parent or 23.31 guardian; and 23.32 (12) other methods to increase achievement, as needed. 23.33 Sec. 33. Minnesota Statutes 1997 Supplement, section 23.34 124A.28, subdivision 1a, is amended to read: 23.35 Subd. 1a. [BUILDING ALLOCATION.] A district must allocate 23.36 revenue to each school building in the district where the 24.1 children who have generated the revenue are served. For the 24.2 purposes of this section and section 124.17, subdivision 1d, 24.3 "building" means education site as defined in section 123.951, 24.4 subdivision 1. 24.5 If the pupil is served at a site other than one owned and 24.6 operated by the district, the revenue shall be paid to the 24.7 district and used for services for pupils who generate the 24.8 revenue. 24.9 Sec. 34. Minnesota Statutes 1996, section 124A.30, is 24.10 amended to read: 24.11 124A.30 [STATEWIDE AVERAGE REVENUE.] 24.12 By October 1 of each year the commissioner shall estimate 24.13 the statewide average adjusted generaleducationrevenue per 24.14 actual pupil unit and therangedisparity in adjusted general 24.15educationrevenue among pupils and districts by computingthe24.16difference between the fifth andthe ratio of the ninety-fifth 24.17percentilespercentile to the fifth percentile of adjusted 24.18 generaleducationrevenue. The commissioner must provide that 24.19 information to all school districts. 24.20 If the disparity in adjusted generaleducationrevenue as 24.21 measured by thedifference between the fifth andratio of the 24.22 ninety-fifthpercentilespercentile to the fifth percentile 24.23 increases in any year, the commissionermust propose ashall 24.24 recommend to the legislature options for change in the general 24.25 education formula that will limit the disparity in adjusted 24.26 generaleducationrevenue to no more than the disparity for the 24.27 previous school year. The commissioner must submit theproposal24.28 recommended options to the education committees of the 24.29 legislature by January 15. 24.30 For purposes of this section, adjusted general revenue 24.31 means the sum of basic revenue under section 124A.22, 24.32 subdivision 2; supplemental revenue under section 124A.22, 24.33 subdivisions 8 and 9; transition revenue under section 124.22, 24.34 subdivision 13c; and referendum revenue under section 124A.03. 24.35 Sec. 35. Laws 1997, First Special Session chapter 4, 24.36 article 1, section 61, subdivision 3, is amended to read: 25.1 Subd. 3. [EQUALIZING FACTORS.] The commissioner shall 25.2 adjust each equalizing factor established using adjusted net tax 25.3 capacity per actual pupil unit under Minnesota Statutes, 25.4 chapters 124 and 124A, by dividing the equalizing factor by the 25.5 ratio of the statewide tax capacity as calculated using the 25.6 class rates in effect for assessment year 1996 to the statewide 25.7 tax capacity using the class rates for that assessment year. 25.8 Sec. 36. Laws 1992, chapter 499, article 7, section 31, is 25.9 amended to read: 25.10 Sec. 31. [REPEALER.] 25.11 Minnesota Statutes 1990, sections 124A.02, subdivision 24; 25.12 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 25.13 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 25.14 Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 25.15 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 25.16 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 25.17 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 25.18 1; and 124A.29, subdivision 1, are repealed effective June 30, 25.1919992000; Laws 1991, chapter 265, article 7, section 35, is 25.20 repealed. 25.21 Sec. 37. [BUS LEVY.] 25.22 Subdivision 1. [MAHTOMEDI.] In addition to other levies, 25.23 independent school district No. 832, Mahtomedi, a district that 25.24 was in statutory operating debt, according to Minnesota 25.25 Statutes, section 121.914, subdivisions 1 and 2, may levy an 25.26 amount up to $110,000 for the purchase of four type III school 25.27 buses. This amount may be levied over a period of three years. 25.28 Subd. 2. [KASSON-MANTORVILLE.] In addition to other 25.29 levies, independent school district No. 204, Kasson-Mantorville, 25.30 may levy an amount up to $157,100 for the deficit that occurred 25.31 in the capital equipment fund when a prior bus purchase was 25.32 delayed and paid for after June 30, 1996. 25.33 Sec. 38. [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 25.34 Notwithstanding Minnesota Statutes, section 124.17, 25.35 subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 25.36 only, compensation revenue pupil units for buildings with no 26.1 free or reduced price lunch counts for fiscal year 1997 because 26.2 the site did not participate in the national school lunch 26.3 program, or for a contracted alternative program for which no 26.4 count was reported to the department of children, families, and 26.5 learning, shall be computed using data for the current fiscal 26.6 year. 26.7 Sec. 39. [DEFERRED MAINTENANCE PROJECTS.] 26.8 By June 30, 1999, a school district, upon formal board 26.9 resolution and commissioner of children, families, and learning 26.10 approval, may levy for over a five-year period, or issue general 26.11 obligation bonds under this section to finance an amount equal 26.12 to the combined costs of approved maintenance projects, minus 26.13 $200,000. The total amount financed under this section may not 26.14 exceed $60 per resident pupil unit for the year the bonds are 26.15 issued or the levy is approved. Districts may only finance, 26.16 under this section, costs related to an approved facility plan 26.17 under Minnesota Statutes, section 124.239, subdivision 2. 26.18 Districts must comply with Minnesota Statutes, chapter 475, 26.19 except Minnesota Statutes, sections 475.58 and 475.59. The 26.20 authority to issue bonds under this section is in addition to 26.21 any bonding authority authorized by law. The bonds must be 26.22 payable in not more than five years. A tax levy must be made 26.23 for the payment of the principal and interest on the bonds, in 26.24 accordance with Minnesota Statutes, section 475.61. Districts 26.25 must submit projects to the commissioner for review by September 26.26 30, 1998. Projects financed under this section are not eligible 26.27 for facilities equalization revenue under Minnesota Statutes, 26.28 section 124.95. 26.29 Sec. 40. [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR 26.30 TRANSITION.] 26.31 For fiscal year 1999 only, the supplemental compensatory 26.32 revenue for each school district equals: the sum of the number 26.33 of pupils enrolled in the district eligible to receive free 26.34 lunch plus one-half of the pupils eligible to receive reduced 26.35 price lunch on October 1, 1997, times $10. Revenue under this 26.36 section is allocated to school districts, and must be used 27.1 according to Minnesota Statutes, section 124A.28, subdivision 1. 27.2 Sec. 41. [ELMORE LEVY ADJUSTMENT.] 27.3 For property taxes payable in 1999 only, the levy for 27.4 independent school district No. 2860, Blue Earth area, must be 27.5 reduced by an amount equal to the amount levied by independent 27.6 school district No. 219, Elmore, according to Laws 1996, chapter 27.7 412, article 5, section 18, subdivision 2, for taxes payable in 27.8 1997. The levy reduction must be applied against all taxable 27.9 property in preexisting independent school district No. 219, 27.10 Elmore, only. 27.11 Sec. 42. [FISCAL YEAR 1999 REFERENDUM REVENUE AID AND LEVY 27.12 CALCULATIONS.] 27.13 For fiscal year 1999 only, the increase in referendum 27.14 revenue under section 24 must be paid by the department of 27.15 children, families, and learning as state aid. The referendum 27.16 levy for fiscal year 1999 shall be computed according to the 27.17 referendum allowance reduction under Minnesota Statutes 1996, 27.18 section 124A.03, subdivision 3c. 27.19 Sec. 43. [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON 27.20 COUNTY CENTRAL; REFERENDUM AUTHORITY.] 27.21 Subdivision 1. [REFERENDUM REVENUE ADJUSTMENT.] 27.22 Notwithstanding Minnesota Statutes, section 124A.03, referendum 27.23 equalization aid for fiscal year 1998 for independent school 27.24 district No. 2862, Jackson County Central, is $72,000, and the 27.25 district's net tax capacity referendum levy is $61,000. 27.26 Subd. 2. [AID ADJUSTMENT.] The department of children, 27.27 families, and learning shall adjust the aid payments for fiscal 27.28 year 1999 to independent school district No. 2862, Jackson 27.29 County Central, according to subdivision 1. 27.30 Subd. 3. [LEVY ADJUSTMENT.] For taxes payable in 1999, the 27.31 department of children, families, and learning shall make a levy 27.32 adjustment for the independent school district No. 2862, Jackson 27.33 County Central, referendum levy authority for fiscal year 1998 27.34 according to subdivision 1. 27.35 Sec. 44. [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.] 27.36 For the purpose of calculating debt service equalization, 28.1 donations for capital improvements received before December 31, 28.2 2000, to independent school district No. 300, La Crescent-Hokah, 28.3 must be considered as part of the percentage that is required to 28.4 be raised locally under Minnesota Statutes, section 124.95, 28.5 subdivision 3. 28.6 Sec. 45. [APPROPRIATIONS.] 28.7 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 28.8 LEARNING.] The sums indicated in this section are appropriated 28.9 from the general fund to the department of children, families, 28.10 and learning for the fiscal years designated. 28.11 Subd. 2. [SHIFT ELIMINATED.] For additional general 28.12 education aid for eliminating the property tax recognition shift 28.13 under this article: 28.14 $90,100,000 ..... 1999 28.15 Notwithstanding the provisions of Minnesota Statutes, 28.16 section 124.195, the commissioner of children, families, and 28.17 learning shall pay the fiscal year 1999 appropriation on June 28.18 20, 1999. 28.19 Subd. 3. [DISTRICT-LEVEL COMPENSATORY REVENUE.] For 28.20 one-time additional district level compensatory revenue: 28.21 $1,916,000 ..... 1999 28.22 Sec. 46. [REPEALER.] 28.23 (a) Minnesota Statutes 1997 Supplement, section 124.912, 28.24 subdivisions 2 and 3, are repealed effective for taxes payable 28.25 in 1998. 28.26 (b) Minnesota Statutes 1996, sections 121.904, subdivision 28.27 4c; and 124.2601, subdivision 4; Minnesota Statutes 1997 28.28 Supplement, section 124.155, subdivisions 1 and 2, are repealed. 28.29 (c) Minnesota Statutes 1997 Supplement, section 124.2601, 28.30 subdivision 5, is repealed effective July 1, 1999. 28.31 (d) Minnesota Statutes 1996, section 124.2713, subdivision 28.32 6b, is repealed effective for taxes payable in 1999 and revenue 28.33 for fiscal year 2000. 28.34 (e) Minnesota Statutes 1996, section 124.2727, subdivision 28.35 6b, is repealed effective for taxes payable in 1999. 28.36 (f) Minnesota Statutes 1996, section 124A.292, subdivisions 29.1 2 and 4, are repealed effective for revenue for fiscal year 2000. 29.2 (g) Laws 1997, chapter 231, article 1, section 17, is 29.3 repealed effective the day following final enactment. 29.4 Sec. 47. [EFFECTIVE DATES.] 29.5 Section 3 is effective July 1, 1999. Section 6 is 29.6 effective July 1, 1997, for revenue for fiscal year 1999 29.7 relating to free and reduced lunch prices. Sections 4, 7, 8, 29.8 11, 12, and 34 are effective for revenue for fiscal year 1998. 29.9 Section 35 is effective for taxes payable in 1998. Section 13 29.10 is effective July 1, 1999. Section 20 is effective 29.11 retroactively for revenue for fiscal year 1997. Sections 17 and 29.12 29 are effective for revenue for fiscal year 2000. 29.13 ARTICLE 2 29.14 SPECIAL EDUCATION 29.15 Section 1. Minnesota Statutes 1996, section 120.03, 29.16 subdivision 1, is amended to read: 29.17 Subdivision 1. Every child who has a hearing impairment, 29.18 visual disability, speech or language impairment, physical 29.19 handicap, other health impairment, mental handicap, 29.20 emotional/behavioral disorder, specific learning 29.21 disability, autism, traumatic brain injury, multiple 29.22 disabilities, or deaf/blind disability and needs special 29.23 instruction and services, as determined by the standards of the 29.24 state board, is a child with a disability. In addition, every 29.25 child under agefivethree, and at local district discretion 29.26 from age three to age seven, who needs special instruction and 29.27 services, as determined by the standards of the state board, 29.28 because the child has a substantial delay or has an identifiable 29.29 physical or mental condition known to hinder normal development 29.30 is a child with a disability. 29.31 Sec. 2. [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO 29.32 MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.] 29.33 Subdivision 1. [DEFINITION.] For purposes of this section, 29.34 cooperative unit has the meaning given in section 123.35, 29.35 subdivision 19b, paragraph (d). 29.36 Subd. 2. [STATEWIDE DATA MANAGEMENT SYSTEM.] The 30.1 commissioner of children, families, and learning, in cooperation 30.2 with the commissioner of human services, shall develop a 30.3 statewide data management system using the educational data 30.4 reporting system or other existing data management system for 30.5 school districts and cooperative units to use to maximize 30.6 medical assistance reimbursement for health and health-related 30.7 services provided under individual education plans and 30.8 individual family service plans. The system must be 30.9 appropriately integrated with state and local existing and 30.10 developing human services and education data systems. The 30.11 statewide data management system must enable school district and 30.12 cooperative unit staff to: 30.13 (1) establish medical assistance billing systems or improve 30.14 existing systems; 30.15 (2) understand the appropriate medical assistance billing 30.16 codes for services provided under individual education plans and 30.17 individual family service plans; 30.18 (3) comply with the Individuals with Disabilities Education 30.19 Act, Public Law Number 105-17; 30.20 (4) contract with billing agents; and 30.21 (5) carry out other activities necessary to maximize 30.22 medical assistance reimbursement. 30.23 Subd. 3. [IMPLEMENTATION.] Consistent with Minnesota 30.24 Statutes 256B.0625, subdivision 26, school districts may enroll 30.25 as medical assistance providers or subcontractors and bill the 30.26 department of human services under the medical assistance fee 30.27 for service claims processing system for special education 30.28 services which are covered services under chapter 256B, which 30.29 are provided in the school setting for a medical assistance 30.30 recipient, and for whom the district has secured informed 30.31 consent consistent with section 13.05, subdivision 4, paragraph 30.32 (d), and section 256B.77, subdivision 2, paragraph (p), to bill 30.33 for each type of covered service. A school district is not 30.34 eligible to enroll as a home care provider or a personal care 30.35 provider organization for purposes of billing home care services 30.36 under section 256B.0627 until the commissioner of human services 31.1 issues a bulletin instructing county public health nurses on how 31.2 to assess for the needs of eligible recipients during school 31.3 hours. To use private duty nursing services or personal care 31.4 services at school, the recipient or responsible party must 31.5 provide written authorization in the care plan identifying the 31.6 chosen provider and the daily amount of services to be used at 31.7 school. Medical assistance services for those enrolled in a 31.8 prepaid health plan shall remain the responsibility of the 31.9 contracted health plan subject to their network, credentialing, 31.10 prior authorization, and determination of medical necessity 31.11 criteria. The commissioner of human services shall adjust 31.12 payments to health plans to reflect increased costs incurred by 31.13 health plans due to increased payments made to school districts 31.14 or new payment or delivery arrangements developed by health 31.15 plans in cooperation with school districts. 31.16 Sec. 3. Minnesota Statutes 1996, section 120.06, 31.17 subdivision 2a, is amended to read: 31.18 Subd. 2a. [EDUCATION AND RESIDENCE OF HOMELESS.] (a) 31.19 Notwithstanding subdivision 1, a school district must not deny 31.20 free admission to a homeless person of school age solely because 31.21 the school district cannot determine that the person is a 31.22 resident of the school district. 31.23 (b) The school district of residence for a homeless person 31.24 of school age shall be the school district in which the homeless 31.25 shelter or other program, center, or facility assisting the 31.26 homeless person is located. The educational services a school 31.27 district provides to a homeless person must allow the person to 31.28 meet the graduation standards under section 121.11, subdivision 31.29 7c. 31.30 Sec. 4. Minnesota Statutes 1996, section 120.064, 31.31 subdivision 5, is amended to read: 31.32 Subd. 5. [CONTRACT.] The sponsor's authorization for a 31.33 charter school shall be in the form of a written contract signed 31.34 by the sponsor and the board of directors of the charter 31.35 school. The contract for a charter school shall be in writing 31.36 and contain at least the following: 32.1 (1) a description of a program that carries out one or more 32.2 of the purposes in subdivision 1; 32.3 (2) specific outcomes pupils are to achieve under 32.4 subdivision 10; 32.5 (3) admission policies and procedures; 32.6 (4) management and administration of the school; 32.7 (5) requirements and procedures for program and financial 32.8 audits; 32.9 (6) how the school will comply with subdivisions 8, 13, 15, 32.10 and 21; 32.11 (7) assumption of liability by the charter school; 32.12 (8) types and amounts of insurance coverage to be obtained 32.13 by the charter school;and32.14 (9) the term of the contract, which may be up to three 32.15 years; and 32.16 (10) if the board of directors or the operators of the 32.17 charter school provide special instruction and services for 32.18 children with a disability under section 120.17, a description 32.19 of the financial parameters within which the charter school will 32.20 operate to provide the special instruction and services to 32.21 children with a disability. 32.22 Sec. 5. Minnesota Statutes 1996, section 120.101, 32.23 subdivision 3, is amended to read: 32.24 Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In 32.25 sections 120.101 to 120.103, "parent" means a parent, guardian, 32.26 or other person having legal custody of a child. 32.27 (b) In section 120.17, "parent" means a parent, guardian, 32.28 or other person having legal custody of a child under age 18. 32.29 For an unmarried pupil age 18 or over, "parent" means the pupil 32.30 unless a guardian or conservator has been appointed, in which 32.31 case it means the guardian or conservator. 32.32 (c) For purposes of section 120.17, the school district of 32.33 residence for an unmarried pupil age 18 or over who is a parent 32.34 under paragraph (b) and who is placed in a center for care and 32.35 treatment, shall be the school district in which the pupil's 32.36 biological or adoptive parent or designated guardian resides. 33.1 (d) For a married pupil age 18 or over, the school district 33.2 of residence is the school district in which the married pupil 33.3 resides. 33.4 Sec. 6. Minnesota Statutes 1996, section 120.17, 33.5 subdivision 1, is amended to read: 33.6 Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A 33.7 DISABILITY.] (a) As defined in paragraph (b), to the extent 33.8 required in federal law as of July 1, 1999, every district shall 33.9 provide special instruction and services, either within the 33.10 district or in another district, for children with a disability 33.11 who are residents of the district and who are disabled as set 33.12 forth in section 120.03. 33.13 (b) Notwithstanding any age limits in laws to the contrary, 33.14 special instruction and services must be provided from birth 33.15 until September 1 after the child with a disability becomes 22 33.16 years old but shall not extend beyond secondary school or its 33.17 equivalent, except as provided in section 126.22, subdivision 33.18 2. Local health, education, and social service agencies shall 33.19 refer children under age five who are known to need or suspected 33.20 of needing special instruction and services to the school 33.21 district. Districts with less than the minimum number of 33.22 eligible children with a disability as determined by the state 33.23 board shall cooperate with other districts to maintain a full 33.24 range of programs for education and services for children with a 33.25 disability. This subdivision does not alter the compulsory 33.26 attendance requirements of section 120.101. 33.27 Sec. 7. Minnesota Statutes 1996, section 120.17, 33.28 subdivision 2, is amended to read: 33.29 Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) As defined 33.30 in this subdivision, to the extent required by federal law as of 33.31 July 1, 1999, special instruction and services for children with 33.32 a disability must be based on the assessment and individual 33.33 education plan. The instruction and services may be provided by 33.34 one or more of the following methods: 33.35 (1) in connection with attending regular elementary and 33.36 secondary school classes; 34.1 (2) establishment of special classes; 34.2 (3) at the home or bedside of the child; 34.3 (4) in other districts; 34.4 (5) instruction and services by special education 34.5 cooperative centers established under this section, or in 34.6 another member district of the cooperative center to which the 34.7 resident district of the child with a disability belongs; 34.8 (6) in a state residential school or a school department of 34.9 a state institution approved by the commissioner; 34.10 (7) in other states; 34.11 (8) by contracting with public, private or voluntary 34.12 agencies; 34.13 (9) for children under age five and their families, 34.14 programs and services established through collaborative efforts 34.15 with other agencies; 34.16 (10) for children under age five and their families, 34.17 programs in which children with a disability are served with 34.18 children without a disability; and 34.19 (11) any other method approved by the commissioner. 34.20 (b) Preference shall be given to providing special 34.21 instruction and services to children under age three and their 34.22 families in the residence of the child with the parent or 34.23 primary caregiver, or both, present. 34.24 (c) The primary responsibility for the education of a child 34.25 with a disability shall remain with the district of the child's 34.26 residence regardless of which method of providing special 34.27 instruction and services is used. If a district other than a 34.28 child's district of residence provides special instruction and 34.29 services to the child, then the district providing the special 34.30 instruction and services shall notify the child's district of 34.31 residence before the child's individual education plan is 34.32 developed and shall provide the district of residence an 34.33 opportunity to participate in the plan's development. The 34.34 district of residence must inform the parents of the child about 34.35 the methods of instruction that are available. 34.36 (d) Paragraphs (e) to (i) may be cited as the "blind 35.1 persons' literacy rights and education act." 35.2 (e) The following definitions apply to paragraphs (f) to 35.3 (i). 35.4 "Blind student" means an individual who is eligible for 35.5 special educational services and who: 35.6 (1) has a visual acuity of 20/200 or less in the better eye 35.7 with correcting lenses or has a limited field of vision such 35.8 that the widest diameter subtends an angular distance of no 35.9 greater than 20 degrees; or 35.10 (2) has a medically indicated expectation of visual 35.11 deterioration. 35.12 "Braille" means the system of reading and writing through 35.13 touch commonly known as standard English Braille. 35.14"Individualized education plan" means a written statement35.15developed for a student eligible for special education and35.16services pursuant to this section and section 602(a)(20) of part35.17A of the Individuals with Disabilities Education Act, United35.18States Code, title 20, section 1401(a).35.19 (f) In developing an individualized education plan for each 35.20 blind student the presumption must be that proficiency in 35.21 Braille reading and writing is essential for the student to 35.22 achieve satisfactory educational progress. The assessment 35.23 required for each student must include a Braille skills 35.24 inventory, including a statement of strengths and deficits. 35.25 Braille instruction and use are not required by this paragraph 35.26 if, in the course of developing the student's individualized 35.27 education program, team members concur that the student's visual 35.28 impairment does not affect reading and writing performance 35.29 commensurate with ability. This paragraph does not require the 35.30 exclusive use of Braille if other special education services are 35.31 appropriate to the student's educational needs. The provision 35.32 of other appropriate services does not preclude Braille use or 35.33 instruction. Instruction in Braille reading and writing shall 35.34 be available for each blind student for whom the 35.35 multidisciplinary team has determined that reading and writing 35.36 is appropriate. 36.1 (g) Instruction in Braille reading and writing must be 36.2 sufficient to enable each blind student to communicate 36.3 effectively and efficiently with the same level of proficiency 36.4 expected of the student's peers of comparable ability and grade 36.5 level. 36.6 (h) The student's individualized education plan must 36.7 specify: 36.8 (1) the results obtained from the assessment required under 36.9 paragraph (f); 36.10 (2) how Braille will be implemented through integration 36.11 with other classroom activities; 36.12 (3) the date on which Braille instruction will begin; 36.13 (4) the length of the period of instruction and the 36.14 frequency and duration of each instructional session; 36.15 (5) the level of competency in Braille reading and writing 36.16 to be achieved by the end of the period and the objective 36.17 assessment measures to be used; and 36.18 (6) if a decision has been made under paragraph (f) that 36.19 Braille instruction or use is not required for the student: 36.20 (i) a statement that the decision was reached after a 36.21 review of pertinent literature describing the educational 36.22 benefits of Braille instruction and use; and 36.23 (ii) a specification of the evidence used to determine that 36.24 the student's ability to read and write effectively without 36.25 Braille is not impaired. 36.26 (i) Instruction in Braille reading and writing is a service 36.27 for the purpose of special education and services under this 36.28 section. 36.29 (j) Paragraphs (e) to (i) shall not be construed to 36.30 supersede any rights of a parent or guardian of a child with a 36.31 disability under federal or state law. 36.32 Sec. 8. Minnesota Statutes 1996, section 120.17, 36.33 subdivision 3, is amended to read: 36.34 Subd. 3. [RULES OF THE STATE BOARD.] (a) As defined in 36.35 this paragraph, but not to exceed the extent required by federal 36.36 law as of July 1, 1999, the state board shall promulgate rules 37.1 relative to qualifications of essential personnel, courses of 37.2 study, methods of instruction, pupil eligibility, size of 37.3 classes, rooms, equipment, supervision, parent consultation, and 37.4anyotherrules it deemsnecessary rules for instruction of 37.5 children with a disability. These rules shall provide standards 37.6 and procedures appropriate for the implementation of and within 37.7 the limitations of subdivisions 3a and 3b. These rules shall 37.8 also provide standards for the discipline, control, management 37.9 and protection of children with a disability. The state board 37.10 shall not adopt rules for pupils servedin level 1, 2, or 3, as37.11defined in Minnesota Rules, part 3525.2340,primarily in the 37.12 regular classroom establishing either case loads or the maximum 37.13 number of pupils that may be assigned to special education 37.14 teachers. The state board, in consultation with the departments 37.15 of health and human services, shall adopt permanent rules for 37.16 instruction and services for children under age five and their 37.17 families. These rules are binding on state and local education, 37.18 health, and human services agencies. The state board shall 37.19 adopt rules to determine eligibility for special education 37.20 services. The rules shall include procedures and standards by 37.21 which to grant variances for experimental eligibility criteria. 37.22 The state board shall, according to section 14.05, subdivision 37.23 4, notify a district applying for a variance from the rules 37.24 within 45 calendar days of receiving the request whether the 37.25 request for the variance has been granted or denied. If a 37.26 request is denied, the board shall specify the program standards 37.27 used to evaluate the request and the reasons for denying the 37.28 request. 37.29 (b) As provided in this paragraph, but not to exceed the 37.30 extent required by federal law as of July 1, 1999, the state's 37.31 regulatory scheme should support schools by assuring that all 37.32 state special education rules adopted by the state board of 37.33 education result in one or more of the following outcomes: 37.34 (1) increased time available to teachers and, where 37.35 appropriate, to support staff including school nurses for 37.36 educating students through direct and indirect instruction; 38.1 (2) consistent and uniform access to effective education 38.2 programs for students with disabilities throughout the state; 38.3 (3) reduced inequalities,and conflict, appropriate due 38.4 process hearing procedures, and reduced court actions related to 38.5 the delivery of special education instruction and services for 38.6 students with disabilities; 38.7 (4) clear expectations for service providers and for 38.8 students with disabilities; 38.9 (5) increased accountability for all individuals and 38.10 agencies that provide instruction and other services to students 38.11 with disabilities; 38.12 (6) greater focus for the state and local resources 38.13 dedicated to educating students with disabilities; and 38.14 (7) clearer standards for evaluating the effectiveness of 38.15 education and support services for students with disabilities. 38.16 Sec. 9. Minnesota Statutes 1996, section 120.17, 38.17 subdivision 3a, is amended to read: 38.18 Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in 38.19 this subdivision, to the extent required by federal law as of 38.20 July 1, 1999, every district shall ensure that: 38.21 (1) all students with disabilities are provided the special 38.22 instruction and services which are appropriate to their needs. 38.23 Where the individual education plan team has determined 38.24 appropriate goals and objectives based on the student's needs, 38.25 including the extent to which the student can be included in the 38.26 least restrictive environment, and where there are essentially 38.27 equivalent and effective instruction, related services, or 38.28 assistive technology devices available to meet the student's 38.29 needs, cost to the school district may be among the factors 38.30 considered by the team in choosing how to provide the 38.31 appropriate services, instruction, or devices that are to be 38.32 made part of the student's individual education plan. The 38.33 student's needs and the special education instruction and 38.34 services to be provided shall be agreed upon through the 38.35 development of an individual education plan. The plan shall 38.36 address the student's need to develop skills to live and work as 39.1 independently as possible within the community. By grade 9 or 39.2 age 14, the plan shall address the student's needs for 39.3 transition from secondary services to post-secondary education 39.4 and training, employment, community participation, recreation, 39.5 and leisure and home living. In developing the plan, districts 39.6 must inform parents of the full range of transitional goals and 39.7 related services that should be considered. The plan must 39.8 include a statement of the needed transition services, including 39.9 a statement of the interagency responsibilities or linkages or 39.10 both before secondary services are concluded; 39.11 (2) children with a disability under age five and their 39.12 families are provided special instruction and services 39.13 appropriate to the child's level of functioning and needs; 39.14 (3) children with a disability and their parents or 39.15 guardians are guaranteed procedural safeguards and the right to 39.16 participate in decisions involving identification, assessment 39.17 including assistive technology assessment, and educational 39.18 placement of children with a disability; 39.19 (4) eligibility and needs of children with a disability are 39.20 determined by an initial assessment or reassessment. The 39.21 reassessment may be completed using existing data pursuant to 39.22 United States Code, title 20, section 33, et. seq.; 39.23 (5) to the maximum extent appropriate, children with a 39.24 disability, including those in public or private institutions or 39.25 other care facilities, are educated with children who are not 39.26 disabled, and that special classes, separate schooling, or other 39.27 removal of children with a disability from the regular 39.28 educational environment occurs only when and to the extent that 39.29 the nature or severity of the disability is such that education 39.30 in regular classes with the use of supplementary services cannot 39.31 be achieved satisfactorily; 39.32(5)(6) in accordance with recognized professional 39.33 standards, testing and evaluation materials, and procedures 39.34 utilized for the purposes of classification and placement of 39.35 children with a disability are selected and administered so as 39.36 not to be racially or culturally discriminatory; and 40.1(6)(7) the rights of the child are protected when the 40.2 parents or guardians are not known or not available, or the 40.3 child is a ward of the state. 40.4 (b) For paraprofessionals employed to work in programs for 40.5 students with disabilities, the school board in each district 40.6 shall ensure that: 40.7 (1) before or immediately upon employment, each 40.8 paraprofessional develops sufficient knowledge and skills in 40.9 emergency procedures, building orientation, roles and 40.10 responsibilities, confidentiality, vulnerability, and 40.11 reportability, among other things, to begin meeting the needs of 40.12 the students with whom the paraprofessional works; 40.13 (2) annual training opportunities are available to enable 40.14 the paraprofessional to continue to further develop the 40.15 knowledge and skills that are specific to the students with whom 40.16 the paraprofessional works, including understanding 40.17 disabilities, following lesson plans, and implementing follow-up 40.18 instructional procedures and activities; and 40.19 (3) a districtwide process obligates each paraprofessional 40.20 to work under the ongoing direction of a licensed teacher and, 40.21 where appropriate and possible, the supervision of a school 40.22 nurse. 40.23 Sec. 10. Minnesota Statutes 1996, section 120.17, 40.24 subdivision 3b, is amended to read: 40.25 Subd. 3b. [PROCEDURES FOR DECISIONS.] As defined in this 40.26 paragraph, but not to exceed the extent required by federal law 40.27 as of July 1, 1999, every district shall utilizeat leastthe 40.28 following procedures for decisions involving identification, 40.29 assessment, and educational placement of children with a 40.30 disability: 40.31 (a) Parents and guardians shall receive prior written 40.32 notice of: 40.33 (1) any proposed formal educational assessment or proposed 40.34 denial of a formal educational assessment of their child; 40.35 (2) a proposed placement of their child in, transfer from 40.36 or to, or denial of placement in a special education program; or 41.1 (3) the proposed provision, addition, denial or removal of 41.2 special education services for their child;. 41.3 (b) The district shall not proceed with the initial formal 41.4 assessment of a child, the initial placement of a child in a 41.5 special education program, or the initial provision of special 41.6 education services for a child without the prior written consent 41.7 of the child's parent or guardian. The refusal of a parent or 41.8 guardian to consent may be overridden by the decision in a 41.9 hearing held pursuant toclauseparagraph (e) at the district's 41.10 initiative;. 41.11 (c) Parents and guardians shall have an opportunity to meet 41.12 with appropriate district staff in at least one conciliation 41.13 conference, mediation, or other method of alternative dispute 41.14 resolution that the parties agree to, if they object to any 41.15 proposal of which they are notified pursuant toclause41.16 paragraph (a). A school district must participate in at least 41.17 one attempt to mediate the dispute using the mediation services 41.18 of MNSEMS, which is free to both parties, if a parent or 41.19 guardian requests the mediation. The conciliation process or 41.20 other form of alternative dispute resolution shall not be used 41.21 to deny or delay a parent or guardian's right to a due process 41.22 hearing. If the parent or guardian refuses efforts by the 41.23 district toconciliate the dispute with the school district, the41.24requirement of an opportunity for conciliation or other41.25alternative dispute resolution shall be deemed to be satisfied.41.26Notwithstanding other law, in any proceeding following a41.27conciliation conference, the school district must not offer a41.28conciliation conference memorandum into evidence, except for any41.29portions that describe the district's final proposed offer of41.30service. Otherwise, with respect to forms of dispute41.31resolution, mediation, or conciliation, Minnesota Rule of41.32Evidence 408 applies.resolve the dispute through alternative 41.33 dispute resolution, the parent or guardian may later request an 41.34 alternative dispute resolution and a school district must 41.35 participate in at least one mediation session using the 41.36 mediation services of MNSEMS. Any alternative dispute 42.1 resolution proceedings which take place between the parties will 42.2 be governed by the confidentiality requirements in rule 114.08 42.3 of the general rules of practice for the district courts. The 42.4 department of children, families, and learning may reimburse the 42.5 districts or directly pay the costs of lay advocates, not to 42.6 exceed $150 per dispute, used in conjunction with alternative 42.7 dispute resolution. The commissioner shall establish policies 42.8 for districts and provide training and resources designed to 42.9 encourage early identification of disputes and access to 42.10 mediation. 42.11 (d) The commissioner shall establish a mediation process to 42.12 assist parents, school districts, or other parties to resolve 42.13 disputes arising out of the identification, assessment, or 42.14 educational placement of children with a disability. The 42.15 mediation process must be offered as an informal alternative to 42.16 the due process hearing provided underclauseparagraph (e), but 42.17 must not be used to deny or postpone the opportunity of a parent 42.18 or guardian to obtain a due process hearing. 42.19 (e) Parents, guardians, and the district shall have an 42.20 opportunity to obtain an impartial due process hearing initiated 42.21 and conducted by and in the school district responsible for 42.22 assuring that an appropriate program is provided in accordance 42.23 with state board rules, if the parent or guardian continues to 42.24 object to: 42.25 (1) a proposed formal educational assessment or proposed 42.26 denial of a formal educational assessment of their child; 42.27 (2) the proposed placement of their child in, or transfer 42.28 of their child to a special education program; 42.29 (3) the proposed denial of placement of their child in a 42.30 special education program or the transfer of their child from a 42.31 special education program; 42.32 (4) the proposed provision or addition of special education 42.33 services for their child; or 42.34 (5) the proposed denial or removal of special education 42.35 services for their child. 42.36 Within five business days after the request for a hearing, 43.1 or as directed by the hearing officer, the objecting party shall 43.2 provide the other party with a brief written statement of 43.3 particulars of the objection, the reasons for the objection, and 43.4 the specific remedies sought. The other party shall provide the 43.5 objecting party with a written response to the statement of 43.6 objections within five business days of receipt of the statement. 43.7 The hearing shall take place before an impartial hearing 43.8 officer mutually agreed to by the school board and the parent or 43.9 guardian. Within four business days of the receipt of the 43.10 request for the hearing, if the parties have not agreed on the 43.11 hearing officer, the school board shall request the commissioner 43.12 to appoint a hearing officer from a list maintained for the 43.13 purpose. A retired judge, retired court referee, or retired 43.14 federal magistrate judge who is otherwise qualified under this 43.15 section and wishes to be a hearing officer, must be put on the 43.16 list. The school board shall include with the request the name 43.17 of the person requesting the hearing, the name of the student, 43.18 the attorneys involved, if any, and the date the hearing request 43.19 was received. The hearing officer shall not be a school board 43.20 member or employee of the school district where the child 43.21 resides or of the child's school district of residence, an 43.22 employee of any other public agency involved in the education or 43.23 care of the child, or any person with a personal or professional 43.24 interest which would conflict with the person's objectivity at 43.25 the hearing. A person who otherwise qualifies as a hearing 43.26 officer is not an employee of the district solely because the 43.27 person is paid by the district to serve as a hearing 43.28 officer. Any party to a hearing, except an expedited hearing 43.29 under federal law, may make and serve upon the opposing party 43.30 and the commissioner a notice to remove a hearing officer 43.31 appointed by the commissioner. The notice shall be served and 43.32 filed within three business days after the party receives notice 43.33 of the appointment of the hearing officer by the commissioner, 43.34 but not later than the commencement of the hearing. 43.35 No such notice may be filed by a party against a hearing 43.36 officer who has presided at a motion or any other proceeding of 44.1 which the party had notice. A hearing officer who has presided 44.2 at a motion or other proceeding may not be removed except upon 44.3 an affirmative showing of prejudice on the part of the hearing 44.4 officer. 44.5 After the party has once disqualified a hearing officer as 44.6 a matter of right, that party may disqualify the substitute 44.7 hearing officer only by making an affirmative showing of 44.8 prejudice or bias to the commissioner, or to the chief 44.9 administrative law judge if the hearing officer is an 44.10 administrative law judge. 44.11 Upon the filing of a notice to remove or if a party makes 44.12 an affirmative showing of prejudice against a substitute hearing 44.13 officer, the commissioner shall assign any other hearing officer 44.14 to hear the matter. 44.15 If the hearing officer requests an independent educational 44.16 assessment of a child, the cost of the assessment shall be at 44.17 district expense. The proceedings shall be recorded and 44.18 preserved, at the expense of the school district, pending 44.19 ultimate disposition of the action. 44.20 (f) The decision of the hearing officer pursuant toclause44.21 paragraph (e) shall be rendered not more than 45 calendar days 44.22 from the date of the receipt of the request for the hearing, 44.23 except that hearing officers are encouraged to accelerate the 44.24 timeline to 30 days for children birth through two whose needs 44.25 change rapidly and require quick resolution of complaints. A 44.26 hearing officer may not grant specific extensions of time beyond 44.27 the 45-day period unless requested by either party for good 44.28 cause shown on the record. The decision of the hearing officer 44.29 shall be binding on all parties unless appealed to the 44.30 commissioner by the parent; guardian; school board of the 44.31 district where the child resides pursuant toclause44.32(g)paragraph (h); and also in the case of children birth 44.33 through two, by the county board. 44.34 The local decision shall: 44.35 (1) be in writing; 44.36 (2) state the controlling facts upon which the decision is 45.1 made in sufficient detail to apprise the parties and the hearing 45.2 review officer of the basis and reason for the decision; and 45.3 (3) be based on the standards set forth in subdivision 3a 45.4 and the rules of the state board. 45.5 (g) The hearing officer may require the resident school 45.6 district to provide compensatory educational services to the 45.7 child if the hearing officer finds that the school district has 45.8 not offered or made available to the child a free appropriate 45.9 public education in the child's educational program and that the 45.10 child has suffered a loss of educational benefit. Such services 45.11 shall take the form of direct and indirect special education and 45.12 related services designed to address any loss of educational 45.13 benefit that may have occurred. The hearing officer's finding 45.14 shall be based on a present determination of whether the child 45.15 has suffered a loss of educational benefit. 45.16(g)(h) Any local decision issued pursuant toclauses45.17 paragraphs (e) and (f) may be appealed to the commissioner 45.18 within 30 calendar days of receipt of that written decision, by 45.19 the parent, guardian, or the school board of the district 45.20 responsible for assuring that an appropriate program is provided 45.21 in accordance with state board rules. The appealing party shall 45.22 note the specific parts of the hearing decision being appealed. 45.23 If the decision is appealed, a written transcript of the 45.24 hearing shall be made by the school district and provided by the 45.25 district to the parties involved and the hearing review officer 45.26 within five calendar days of the filing of the appeal. The 45.27 hearing review officer shall conduct an appellate review and 45.28 issue a final independent decision based on an impartial review 45.29 of the local decision and the entire record within 30 calendar 45.30 days after the filing of the appeal. However, the hearing 45.31 review officer shall seek additional evidence if necessary and 45.32 may afford the parties an opportunity for written or oral 45.33 argument; provided any hearing held to seek additional evidence 45.34 shall be an impartial due process hearing but shall be deemed 45.35 not to be a contested case hearing for purposes of chapter 14. 45.36 The hearing review officer may grant specific extensions of time 46.1 beyond the 30-day period at the request of any party for good 46.2 cause shown on the record. 46.3 The final decision shall: 46.4 (1) be in writing; 46.5 (2) include findings and conclusions; and 46.6 (3) be based upon the standards set forth in subdivision 3a 46.7 and in the rules of the state board. 46.8(h)(i) The decision of the hearing review officer shall be 46.9 final unless appealed by the parent or guardian or school board 46.10 to the Minnesota court of appeals or federal district court as 46.11 provided by federal law. State judicial review shall be in 46.12 accordance with chapter 14. 46.13(i)(j) The commissioner of children, families, and 46.14 learning shall select an individual who has the qualifications 46.15 enumerated in this paragraph to serve as the hearing review 46.16 officer: 46.17 (1) the individual must be knowledgeable and impartial; 46.18 (2) the individual must not have a personal interest in or 46.19 specific involvement with the student who is a party to the 46.20 hearing; 46.21 (3) the individual must not have been employed as an 46.22 administrator by the district that is a party to the hearing; 46.23 (4) the individual must not have been involved in the 46.24 selection of the administrators of the district that is a party 46.25 to the hearing; 46.26 (5) the individual must not have a personal, economic, or 46.27 professional interest in the outcome of the hearing other than 46.28 the proper administration of the federal and state laws, rules, 46.29 and policies; 46.30 (6) the individual must not have substantial involvement in 46.31 the development of a state or local policy or procedures that 46.32 are challenged in the appeal; 46.33 (7) the individual is not a current employee or board 46.34 member of a Minnesota public school district, education 46.35 district, intermediate unit or regional education agency, the 46.36 department of children, families, and learning, the state board 47.1 of education; and 47.2 (8) the individual is not a current employee or board 47.3 member of a disability advocacy organization or group. 47.4(j)(k) In all appeals, the parent or guardian of the pupil 47.5 with a disability or the district that is a party to the hearing 47.6 may challenge the impartiality or competence of the proposed 47.7 hearing review officer by applying to the hearing review officer. 47.8(k)(l) Pending the completion of proceedings pursuant to 47.9 this subdivision, unless the district and the parent or guardian 47.10 of the child agree otherwise, the child shall remain in the 47.11 child's current educational placement and shall not be denied 47.12 initial admission to school. 47.13(l)(m) The child's school district of residence, a 47.14 resident district, and providing district shall receive notice 47.15 of and may be a party to any hearings or appeals under this 47.16 subdivision. 47.17(m)(n) A school district is not liable for harmless 47.18 technical violations of this subdivision or rules implementing 47.19 this subdivision if the school district can demonstrate on a 47.20 case-by-case basis that the violations did not harm the 47.21 student's educational progress or the parent or guardian's right 47.22 to notice, participation, or due process. 47.23(n)(o) Within ten calendar days after appointment, the 47.24 hearing officer shall schedule and hold a prehearing 47.25 conference. At that conference, or later, the hearing officer 47.26 may take any appropriate action that a court might take under 47.27 Rule 16 of Minnesota Rules of Civil Procedure including, but not 47.28 limited to, scheduling, jurisdiction, and listing witnesses 47.29 including expert witnesses. 47.30(o)(p) A hearing officer or hearing review officer 47.31 appointed under this subdivision shall be deemed to be an 47.32 employee of the state under section 3.732 for the purposes of 47.33 section 3.736 only. 47.34(p)(q) In order to be eligible for selection, hearing 47.35 officers and hearing review officers shall participate in 47.36 training and follow procedures as designated by the commissioner. 48.1(q)(r) The hearing officer may admit all evidence which 48.2 possesses probative value, including hearsay, if it is the type 48.3 of evidence on which reasonable, prudent persons are accustomed 48.4 to rely in the conduct of their serious affairs. The hearing 48.5 officer shall give effect to the rules of privilege recognized 48.6 by law. Evidence which is incompetent, irrelevant, immaterial, 48.7 or unduly repetitious shall be excluded. 48.8 Sec. 11. Minnesota Statutes 1996, section 120.17, 48.9 subdivision 9, is amended to read: 48.10 Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district 48.11 who is eligible for special instruction and servicespursuant to48.12 under this section shall be deniedprovision of thisinstruction 48.13 and service on a shared time basis consistent with section 48.14 124A.034, subdivision 2, because ofattendance atattending a 48.15 nonpublic school defined in section 123.932, subdivision 3. If 48.16 a resident pupil with a disability attends a nonpublic school 48.17 located within the district of residence, the district shall 48.18 provide necessary transportation for that pupil within the 48.19 district between the nonpublic school and the educational 48.20 facility where special instruction and services are provided on 48.21 a shared time basis. If a resident pupil with a disability 48.22 attends a nonpublic school located in another district and if no 48.23 agreement existspursuant tounder section 124A.034, subdivision 48.24 1 or 1a, forthe provision ofproviding special instruction and 48.25 services on a shared time basis to that pupil by the district of 48.26 attendance and where the special instruction and services are 48.27 provided within the district of residence, the district of 48.28 residence shall provide necessary transportation for that pupil 48.29 between the boundary of the district of residence and the 48.30 educational facility. The district of residence may provide 48.31 necessary transportation for that pupil between its boundary and 48.32 the nonpublic school attended, but the nonpublic school shall 48.33 pay the cost of transportation provided outside the district 48.34 boundary. 48.35 Sec. 12. Minnesota Statutes 1996, section 120.17, 48.36 subdivision 15, is amended to read: 49.1 Subd. 15. [THIRD PARTY PAYMENT.] Nothing in this section 49.2 relieves an insurer or similar third party from an otherwise 49.3 valid obligation to pay, or changes the validity of an 49.4 obligation to pay, for services rendered to a child with a 49.5 disability, and the child's family. A school district may pay 49.6 or reimburse copayments, coinsurance, deductibles, and other 49.7 enrollee cost-sharing amounts, on behalf of the student or 49.8 family, in connection with health and related services provided 49.9 under an individual educational plan. District payment of 49.10 enrollee cost sharing amounts shall serve to meet the 49.11 requirement that the health and related services be provided 49.12 free to the child and the child's family. The district shall 49.13 obtain informed consent consistent with section 13.05, 49.14 subdivision 4, paragraph (d), and section 256B.77, subdivision 49.15 2, paragraph (p), to bill health plans for each type of covered 49.16 service. 49.17 Sec. 13. Minnesota Statutes 1996, section 120.1701, 49.18 subdivision 2, is amended to read: 49.19 Subd. 2. [DEFINITIONS.] For the purposes of this section 49.20 the following terms have the meaning given them. 49.21 (a) "Coordinate" means to provide ready access to a 49.22 community's services and resources to meet child and family 49.23 needs. 49.24 (b) "Core early intervention services" means services that 49.25 are available at no cost to children and families. These 49.26 services include: 49.27 (1) identification and referral; 49.28 (2) screening; 49.29 (3) evaluation; 49.30 (4) assessment; 49.31 (5) service coordination; 49.32 (6) special education and related services provided under 49.33 section 120.17, subdivision 3a, and United States Code, title 49.34 20, section 1401; and 49.35 (7) protection of parent and child rights by means of 49.36 procedural safeguards. 50.1 (c) "County board" means a county board established under 50.2 chapter 375. 50.3 (d) "Early intervention record" means any personally 50.4 identifiable information about a child or the child's family 50.5 that is generated by the early intervention system, and that 50.6 pertains to evaluation and assessment, development of an 50.7 individualized family service plan, and the delivery of early 50.8 intervention services. 50.9 (e) "Early intervention services" means services provided 50.10 in conformity with an individualized family service plan that 50.11 are designed to meet the special developmental needs of a child 50.12 eligible under Code of Federal Regulations, title 34, part 303, 50.13 and the needs of the child's family related to enhancing the 50.14 child's development and that are selected in collaboration with 50.15 the parent. These services include core early intervention 50.16 services and additional early intervention services listed in 50.17 subdivision 4 and services defined in Code of Federal 50.18 Regulations, title 34, section 303, et seq. 50.19 (f) "Early intervention system" means the total effort in 50.20 the state to meet the needs of eligible children and their 50.21 families, including, but not limited to: 50.22 (1) any public agency in the state that receives funds 50.23 under the Individuals with Disabilities Education Act, United 50.24 States Code, title 20, sections 1471 to 1485 (Part H, Public Law 50.25 Number 102-119); 50.26 (2) other state and local agencies administering programs 50.27 involved in the provision of early intervention services, 50.28 including, but not limited to: 50.29 (i) the Maternal and Child Health program under title V of 50.30 the Social Security Act, United States Code, title 42, sections 50.31 701 to 709; 50.32 (ii) the Individuals with Disabilities Education Act, 50.33 United States Code, title 20, sections 1411 to 1420 (Part B); 50.34 (iii) medical assistance under the Social Security Act, 50.35 United States Code, title 42, section 1396 et seq.; 50.36 (iv) the Developmental Disabilities Assistance and Bill of 51.1 Rights Act, United States Code, title 42, sections 6021 to 6030 51.2 (Part B); and 51.3 (v) the Head Start Act, United States Code, title 42, 51.4 sections 9831 to 9852; and 51.5 (3) services provided by private groups or third-party 51.6 payers in conformity with an individualized family service plan. 51.7 (g) "Eligibility for Part H" means eligibility for early 51.8 childhood special education under section 120.03 and Minnesota 51.9 Rules, part 3525.2335, subpart 1, items A and B. 51.10 (h) "Facilitate payment" means helping families access 51.11 necessary public or private assistance that provides payment for 51.12 services required to meet needs identified in a service plan, 51.13 individual education plan (IEP), individual service plan (ISP), 51.14 or individualized family service plan (IFSP), according to time 51.15 frames required by the plan. This may also include activities 51.16 to collect fees for services provided on a sliding fee basis, 51.17 where permitted by state law. 51.18 (i) "Individualized family service plan" or "IFSP" means a 51.19 written plan for providing services to a child and the child's 51.20 family. 51.21 (j) "Interagency child find systems" means activities 51.22 developed on an interagency basis with the involvement of 51.23 interagency early intervention committees and other relevant 51.24 community groups to actively seek out, identify, and refer 51.25 infants and young children with, or at risk of, disabilities, 51.26 and their families. 51.27 (k) "Local primary agency" means the agency designated 51.28 jointly by the school and county board under subdivision 4. 51.29 (l) "Natural environments" means the child's home and 51.30 community settings in which children without disabilities 51.31 participate. 51.32(l)(m) "Parent" means the biological parent with parental 51.33 rights, adoptive parent, legal guardian, or surrogate parent. 51.34(m)(n) "Part H state plan" means the annual state plan 51.35 application approved by the federal government under the 51.36 Individuals with Disabilities Education Act, United States Code, 52.1 title 20, section 1471 et seq. (Part H, Public Law Number 52.2 102-119). 52.3(n)(o) "Pay for" means using federal, state, local, and 52.4 private dollars available for early intervention services. 52.5(o)(p) "Respite" means short-term, temporary care provided 52.6 to a child with a disability due to the temporary absence or 52.7 need for relief of the family member or members or primary 52.8 caregiver, normally providing the care. 52.9(p)(q) "State lead agency" means the state agency 52.10 receiving federal funds under the Individuals with Disabilities 52.11 Education Act, United States Code, title 20, section 1471 et 52.12 seq. (Part H, Public Law Number 102-119). 52.13(q)(r) "Surrogate parent" means a person appointed by the 52.14 local education agency to assure that the rights of the child to 52.15 early intervention services are protected. A person cannot be a 52.16 surrogate parent to a child for whom the person provides early 52.17 intervention services. 52.18 Sec. 14. Minnesota Statutes 1997 Supplement, section 52.19 120.1701, subdivision 3, is amended to read: 52.20 Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An 52.21 interagency coordinating council of at least 17, but not more 52.22 than 25 members is established, in compliance with Public Law 52.23 Number 102-119, section 682. The members shall be appointed by 52.24 the governor. Council members shall elect the council chair. 52.25 The representative of the commissioner of children, families, 52.26 and learning may not serve as the chair. The council shall be 52.27 composed of at least five parents, including persons of color, 52.28 of children with disabilities under age 12, including at least 52.29 three parents of a child with a disability under age seven, five 52.30 representatives of public or private providers of services for 52.31 children with disabilities under age five, including a special 52.32 education director, county social service director, local Head 52.33 Start director, and a community health services or public health 52.34 nursing administrator, one member of the senate, one member of 52.35 the house of representatives, one representative of teacher 52.36 preparation programs in early childhood-special education or 53.1 other preparation programs in early childhood intervention, at 53.2 least one representative of advocacy organizations for children 53.3 with disabilities under age five, one physician who cares for 53.4 young children with special health care needs, one 53.5 representative each from the commissioners of commerce, 53.6 children, families, and learning, health, human services,and53.7economic securitya representative from the state agency 53.8 responsible for child care, and a representative from Indian 53.9 health services or a tribal council. Section 15.059, 53.10 subdivisions 2 to 5, apply to the council. The council shall 53.11 meet at least quarterly. 53.12 The council shall address methods of implementing the state 53.13 policy of developing and implementing comprehensive, 53.14 coordinated, multidisciplinary interagency programs of early 53.15 intervention services for children with disabilities and their 53.16 families. 53.17 The duties of the council include recommending policies to 53.18 ensure a comprehensive and coordinated system of all state and 53.19 local agency services for children under age five with 53.20 disabilities and their families. The policies must address how 53.21 to incorporate each agency's services into a unified state and 53.22 local system of multidisciplinary assessment practices, 53.23 individual intervention plans, comprehensive systems to find 53.24 children in need of services, methods to improve public 53.25 awareness, and assistance in determining the role of interagency 53.26 early intervention committees. 53.27 Each year by June 1, the council shall recommend to the 53.28 governor and the commissioners of children, families, and 53.29 learning, health, human services, commerce, and economic 53.30 security policies for a comprehensive and coordinated system. 53.31 Notwithstanding any other law to the contrary, the state 53.32 interagency coordinating council shall expire on June 30, 2001. 53.33 Sec. 15. Minnesota Statutes 1996, section 120.1701, 53.34 subdivision 5, is amended to read: 53.35 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 53.36 A school district, group of districts, or special education 54.1 cooperative, in cooperation with the health and human service 54.2 agencies located in the county or counties in which the district 54.3 or cooperative is located, shall establish an interagency early 54.4 intervention committee for children with disabilities under age 54.5 five and their families. Committees shall include 54.6 representatives of local and regional health, education, and 54.7 county human service agencies; county boards; school boards; 54.8 early childhood family education programs; parents of young 54.9 children with disabilities under age 12; current service 54.10 providers; and may also include representatives from other 54.11 private or public agencies. The committee shall elect a chair 54.12 from among its members and shall meet at least quarterly. 54.13 (b) The committee shall develop and implement interagency 54.14 policies and procedures concerning the following ongoing duties: 54.15 (1) develop public awareness systems designed to inform 54.16 potential recipient families of available programs and services; 54.17 (2) implement interagency child find systems designed to 54.18 actively seek out, identify, and refer infants and young 54.19 children with, or at risk of, disabilities and their families; 54.20 (3) establish and evaluate the identification, referral, 54.21 child and family assessment systems, procedural safeguard 54.22 process, and community learning systems to recommend, where 54.23 necessary, alterations and improvements; 54.24 (4) assure the development of individualized family service 54.25 plans for all eligible infants and toddlers with disabilities 54.26 from birth through age two, and their families, and individual 54.27 education plans and individual service plans when necessary to 54.28 appropriately serve children with disabilities, age three and 54.29 older, and their families and recommend assignment of financial 54.30 responsibilities to the appropriate agencies. Agencies are 54.31 encouraged to develop individual family service plans for 54.32 children with disabilities, age three and older; 54.33 (5) implement a process for assuring that services involve 54.34 cooperating agencies at all steps leading to individualized 54.35 programs; 54.36 (6) facilitate the development of a transitional plan if a 55.1 service provider is not recommended to continue to provide 55.2 services; 55.3 (7) identify the current services and funding being 55.4 provided within the community for children with disabilities 55.5 under age five and their families; 55.6 (8) develop a plan for the allocation and expenditure of 55.7 additional state and federal early intervention funds under 55.8 United States Code, title 20, section 1471 et seq. (Part H, 55.9 Public Law Number 102-119) and United States Code, title 20, 55.10 section 631, et seq. (Chapter I, Public Law Number 89-313); and 55.11 (9) develop a policy that is consistent with section 13.05, 55.12 subdivision 9, and federal law to enable a member of an 55.13 interagency early intervention committee to allow another member 55.14 access to data classified as not public. 55.15 (c) The local committee shall also: 55.16 (1) participate in needs assessments and program planning 55.17 activities conducted by local social service, health and 55.18 education agencies for young children with disabilities and 55.19 their families; 55.20 (2) review and comment on the early intervention section of 55.21 the total special education system for the district, the county 55.22 social service plan, the section or sections of the community 55.23 health services plan that address needs of and service 55.24 activities targeted to children with special health care needs, 55.25 and the section of the maternal and child health special project 55.26 grants that address needs of and service activities targeted to 55.27 children with chronic illness and disabilities; and 55.28 (3) prepare a yearly summary on the progress of the 55.29 community in serving young children with disabilities, and their 55.30 families, including the expenditure of funds, the identification55.31of unmet service needs identified on the individual family55.32services plan and other individualized plans, and local, state,55.33and federal policies impeding the implementation of this section. 55.34 (d) The summary must be organized following a format 55.35 prescribed by the commissioner of the state lead agency and must 55.36 be submitted to each of the local agencies and to the state 56.1 interagency coordinating council by October 1 of each year. 56.2 The departments of children, families, and learning, 56.3 health, and human services must provide assistance to the local 56.4 agencies in developing cooperative plans for providing services. 56.5 Sec. 16. Minnesota Statutes 1996, section 120.1701, 56.6 subdivision 11, is amended to read: 56.7 Subd. 11. [PAYOR OF LAST RESORT.](a) For fiscal years56.81995 and 1996,The state lead agency shallestablishmaintain a 56.9 reserve account from federal sources to pay for services in 56.10 dispute or to pay for early intervention services when local 56.11 agencies have exhausted all other public and private funds 56.12 available for Part H eligible children. 56.13(b) The lead agency shall report to the legislature by56.14January 1, 1996, regarding county board expenditures for early56.15intervention services and the continuing need and funding of the56.16reserve account.56.17 Sec. 17. Minnesota Statutes 1996, section 120.1701, 56.18 subdivision 17, is amended to read: 56.19 Subd. 17. [MEDIATION PROCEDURE.] The commissioner, or the 56.20 commissioner's designee, of the state lead agency shall use 56.21 federal funds to provide mediation for the activities in 56.22 paragraphs (a) and (b). 56.23 (a) A parent may resolve a dispute regarding issues in 56.24 subdivision 16, paragraph (b), clause (5), through mediation. 56.25 If the parent chooses mediation, all public agencies involved in 56.26 the dispute shall participate in the mediation process. The 56.27 parent and the public agencies must complete the mediation 56.28 process within2030 calendar days of the date the 56.29commissioneroffice of dispute resolution receives a parent's 56.30 written request for mediation. The mediation process may not be 56.31 used to delay a parent's right to a due process hearing. The 56.32 resolution of the mediation is not binding on any party. 56.33 (b) The local primary agency may request mediation on 56.34 behalf of involved agencies when there are disputes between 56.35 agencies regarding responsibilities to coordinate, provide, pay 56.36 for, or facilitate payment for early intervention services. 57.1 Sec. 18. Minnesota Statutes 1996, section 120.173, 57.2 subdivision 1, is amended to read: 57.3 Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner 57.4 of children, families, and learning may approve applications 57.5 from school districts to provide prevention services as an 57.6 alternative to special education and other compensatory programs 57.7during three school years. A district with an approved program 57.8 may provide instruction and services in a regular education 57.9 classroom, or an area learning center, to eligible pupils. 57.10 Pupils eligible to participate in the program are low-performing 57.11 pupils who, based on documented experience, the professional 57.12 judgment of a classroom teacher, or a team of licensed 57.13 professionals, would eventually qualify for special education 57.14 instruction or related services under section 120.17 if the 57.15 intervention services authorized by this section were 57.16 unavailable. Pupils may be provided services during extended 57.17 school days and throughout the entire year and through the 57.18 assurance of mastery program under section 124.3111. 57.19 Sec. 19. Minnesota Statutes 1996, section 120.173, 57.20 subdivision 6, is amended to read: 57.21 Subd. 6. [PUPIL RIGHTS.] A pupil participating in the 57.22 program must be individually evaluated according to the pupil's 57.23 actual abilities and needs. A pupil who is eligible for 57.24 services under section 120.17 is entitled to procedural 57.25 protections provided underPublic Law Number 94-142United 57.26 States Code, title 20, section 33 in any matter that affects the 57.27 identification, evaluation, placement, or change in placement of 57.28 a pupil. The district must ensure the protection of a pupil's 57.29 civil rights, provide equal educational opportunities, and 57.30 prohibit discrimination. Failure to comply with this 57.31 subdivision will at least cause a district to become ineligible 57.32 to participate in the program. Notwithstanding rules of the 57.33 state board of education, a pupil's rights under this section 57.34 cannot be waived by the state board. 57.35 Sec. 20. Minnesota Statutes 1996, section 123.935, 57.36 subdivision 1, is amended to read: 58.1 Subdivision 1. [PROVIDED SERVICES.] The state board of 58.2 education shall promulgate rules under the provisions of chapter 58.3 14 requiring each school district or other intermediary service 58.4 area: (a) to provide each year upon formal request by a 58.5 specific date by or on behalf of a nonpublic school pupil 58.6 enrolled in a nonpublic school located in that district or area, 58.7 the same specific health services as are provided for public 58.8 school pupils by the district where the nonpublic school is 58.9 located; and (b) to provide each year upon formal request by a 58.10 specific date by or on behalf of a nonpublic school secondary 58.11 pupil enrolled in a nonpublic school located in that district or 58.12 area, the same specific guidance and counseling services as are 58.13 provided for public school secondary pupils by the district 58.14 where the nonpublic school is located. The district where the 58.15 nonpublic school is located shall provide the necessary 58.16 transportation within the district boundaries between the 58.17 nonpublic school and a public school or neutral site for 58.18 nonpublic school pupils who are provided pupil support services 58.19pursuant tounder this section if the district elects to provide 58.20 pupil support services at a site other than the nonpublic school. 58.21 Each request for pupil support services shall set forth the 58.22 guidance and counseling or health services requested by or on 58.23 behalf of all eligible nonpublic school pupils enrolled in a 58.24 given nonpublic school. No district or intermediary service 58.25 area shall expend an amount for these pupil support services 58.26 which exceeds the amount allotted to it under this section. 58.27 Sec. 21. Minnesota Statutes 1996, section 123.935, 58.28 subdivision 2, is amended to read: 58.29 Subd. 2. [LOCATION OF SERVICES.] Health and guidance and 58.30 counseling services may be provided to nonpublic school 58.31 pupilspursuant tounder this section at a public school, a 58.32 neutral site, the nonpublic school or any other suitable 58.33 location.Guidance and counseling services may be provided to58.34nonpublic school pupils pursuant to this section only at a58.35public school or a neutral site.District or intermediary 58.36 service area personnel and representatives of the nonpublic 59.1 school pupils receiving pupil support services shall hold an 59.2 annual consultation regarding the type of services, provider of 59.3 services, and the location of the provision of these services. 59.4 The district board or intermediary service area governing board 59.5 shall make the final decision on the location of the provision 59.6 of these services. 59.7 Sec. 22. Minnesota Statutes 1996, section 124.17, 59.8 subdivision 2, is amended to read: 59.9 Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 59.10 in grades kindergarten through 12 and for prekindergarten pupils 59.11 with disabilities shall mean the number of pupils on the current 59.12 roll of the school, counted from the date of entry until 59.13 withdrawal. The date of withdrawal shall mean the day the pupil 59.14 permanently leaves the school or the date it is officially known 59.15 that the pupil has left or has been legally excused. However, a 59.16 pupil, regardless of age, who has been absent from school for 15 59.17 consecutive school days during the regular school year or for 59.18 five consecutive school days during summer school or 59.19 intersession classes of flexible school year programs without 59.20 receiving instruction in the home or hospital shall be dropped 59.21 from the roll and classified as withdrawn. Nothing in this 59.22 section shall be construed as waiving the compulsory attendance 59.23 provisions cited in section 120.101. Average daily membership 59.24 shall equal the sum for all pupils of the number of days of the 59.25 school year each pupil is enrolled in the district's schools 59.26 divided by the number of days the schools are in session. Days 59.27 of summer school or intersession classes of flexible school year 59.28 programs shall only be included in the computation of membership 59.29 for pupils with a disability not appropriately servedat level59.304, 5, or 6 of the continuum of placement model described in59.31Minnesota Rules, part 3525.0200primarily in the regular 59.32 classroom. 59.33 Sec. 23. Minnesota Statutes 1996, section 124.26, 59.34 subdivision 1c, is amended to read: 59.35 Subd. 1c. [PROGRAM APPROVAL.] (a) To receive aid under 59.36 this section, a district, a consortium of districts,ora 60.1 private nonprofit organization, an area learning center, or an 60.2 alternative program approved by the commissioner must submit an 60.3 application by June 1 describing the program, on a form provided 60.4 by the department. The program must be approved by the 60.5 commissioner according to the following criteria: 60.6 (1) how the needs of different levels of learning will be 60.7 met; 60.8 (2) for continuing programs, an evaluation of results; 60.9 (3) anticipated number and education level of participants; 60.10 (4) coordination with other resources and services; 60.11 (5) participation in a consortium, if any, and money 60.12 available from other participants; 60.13 (6) management and program design; 60.14 (7) volunteer training and use of volunteers; 60.15 (8) staff development services; 60.16 (9) program sites and schedules; and 60.17 (10) program expenditures that qualify for aid. 60.18 (b) The commissioner may grant adult basic education funds 60.19 to a private, nonprofit organization to provide services that 60.20 are not offered by a district or that are supplemental to a 60.21 district's program. The program provided under this provision 60.22 must be approved and funded according to the same criteria used 60.23 for district programs. 60.24 (c) Adult basic education programs may be approved under 60.25 this subdivision for up to five years. Five-year program 60.26 approval shall be granted to an applicant who has demonstrated 60.27 the capacity to: 60.28 (1) offer comprehensive learning opportunities and support 60.29 service choices appropriate for and accessible to adults at all 60.30 basic skill need levels; 60.31 (2) provide a participatory and experiential learning 60.32 approach based on the strengths, interests, and needs of each 60.33 adult, that enables adults with basic skill needs to: 60.34 (i) identify, plan for, and evaluate their own progress 60.35 toward achieving their defined educational and occupational 60.36 goals; 61.1 (ii) master the basic academic reading, writing, and 61.2 computational skills, as well as the problem-solving, decision 61.3 making, interpersonal effectiveness, and other life and learning 61.4 skills they need to function effectively in a changing society; 61.5 (iii) locate and be able to use the health, governmental, 61.6 and social services and resources they need to improve their own 61.7 and their families' lives; and 61.8 (iv) continue their education, if they desire, to at least 61.9 the level of secondary school completion, with the ability to 61.10 secure and benefit from continuing education that will enable 61.11 them to become more employable, productive, and responsible 61.12 citizens; 61.13 (3) plan, coordinate, and develop cooperative agreements 61.14 with community resources to address the needs that the adults 61.15 have for support services, such as transportation, flexible 61.16 course scheduling, convenient class locations, and child care; 61.17 (4) collaborate with business, industry, labor unions, and 61.18 employment-training agencies, as well as with family and 61.19 occupational education providers, to arrange for resources and 61.20 services through which adults can attain economic 61.21 self-sufficiency; 61.22 (5) provide sensitive and well trained adult education 61.23 personnel who participate in local, regional, and statewide 61.24 adult basic education staff development events to master 61.25 effective adult learning and teaching techniques; 61.26 (6) participate in regional adult basic education peer 61.27 program reviews and evaluations; and 61.28 (7) submit accurate and timely performance and fiscal 61.29 reports. 61.30 Sec. 24. Minnesota Statutes 1997 Supplement, section 61.31 124.26, subdivision 2, is amended to read: 61.32 Subd. 2. [ACCOUNTS; REVENUE; AID.] Each district, group of 61.33 districts,orprivate nonprofit organization, area learning 61.34 center, or alternative program approved by the commissioner 61.35 providing adult basic education programs shall establish and 61.36 maintain accounts separate from all other district accounts for 62.1 the receipt and disbursement of all funds related to these 62.2 programs. All revenue received pursuant to this section shall 62.3 be utilized solely for the purposes of adult basic education 62.4 programs. In no case shall federal and state aid plus levy 62.5 equal more than 100 percent of the actual cost of providing 62.6 these programs. 62.7 Sec. 25. Minnesota Statutes 1997 Supplement, section 62.8 124.3111, subdivision 2, is amended to read: 62.9 Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive 62.10 services through an assurance of mastery program if the pupil 62.11 has not demonstrated progress toward mastering the required 62.12 graduation standards, after receiving instruction that was 62.13 designed to enable the pupil to make progress toward mastering 62.14 the required graduation standards in a regular classroom 62.15 setting. A pupil also is eligible to receive services through 62.16 an assurance of mastery program if the pupil, based on the 62.17 professional judgment of a classroom teacher or a team of 62.18 licensed professionals, demonstrates a need for alternative 62.19 instructional strategies or interventions. To determine pupil 62.20 eligibility, a district must use a process adopted by the school 62.21 board to review curriculum and instruction, for the subjects and 62.22 at the grade level at which the district uses the revenue. 62.23 Sec. 26. Minnesota Statutes 1996, section 124.32, is 62.24 amended by adding a subdivision to read: 62.25 Subd. 13. [AID FOR LITIGATION COSTS.] (a) For fiscal years 62.26 1999 and later, school districts shall receive aid based on 70 62.27 percent of the cost associated with due process hearings 62.28 incurred under section 120.17, subdivision 3b, paragraphs (e), 62.29 (h), and (i), including hearing officer fees, court reporter 62.30 fees, expert witness fees, mileage costs, transcript costs, 62.31 costs of outside evaluations ordered by hearing officers, rental 62.32 of hearing rooms, but not including district legal or attorney 62.33 fees. 62.34 (b) In order to receive aid under this subdivision, school 62.35 districts shall submit to the commissioner at the end of each 62.36 school year, costs for fees and other expenses described in 63.1 paragraph (a). Aid under this section for each school district 63.2 is based on costs submitted from the previous school year. A 63.3 school district's aid under this section may not exceed $10 per 63.4 fund balance pupil unit for the year in which the aid is 63.5 received. 63.6 Sec. 27. Minnesota Statutes 1997 Supplement, section 63.7 124.3201, subdivision 4, is amended to read: 63.8 Subd. 4. [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 63.9 state total special education revenue for fiscal year 1998 63.10 equals $358,542,000. The state total special education revenue 63.11 for fiscal year 1999 equals$435,322,000$436,023,000. The 63.12 state total special education revenue for later fiscal years 63.13 equals: 63.14 (1) the state total special education revenue for the 63.15 preceding fiscal year; times 63.16 (2) the program growth factor; times 63.17 (3) the ratio of the state total average daily membership 63.18 for the current fiscal year to the state total average daily 63.19 membership for the preceding fiscal year. 63.20 Sec. 28. Minnesota Statutes 1996, section 124A.034, 63.21 subdivision 2, is amended to read: 63.22 Subd. 2. [LOCATION OF SERVICES.] (a) Public school 63.23 programs that provide instruction in core curriculum may be 63.24 provided to shared time pupils only at a public school building; 63.25provided, however, that special instruction and services for63.26children with a disability required pursuant to section 120.1763.27may also be provided at a neutral site as defined in section63.28123.932,public school programs, excluding programs that provide 63.29 instruction in core curriculum, may be provided to shared time 63.30 pupils at a public school building, a neutral site, the 63.31 nonpublic school, or any other suitable location. Guidance and 63.32 counseling and diagnostic and health services requiredpursuant63.33tounder section 120.17 mayalsobe provided at a nonpublic 63.34 school building. As used in this subdivision, "diagnostic 63.35 services" means speech, hearing, vision, psychological, medical 63.36 and dental diagnostic services and "health services" means 64.1 physician, nursing or optometric services provided to pupils in 64.2 the field of physical and mental health. 64.3 (b) For those children with a disability under section 64.4 120.17 who attend nonpublic school and for whom a free and 64.5 appropriate education is available at a public school, a school 64.6 district may provide special instruction and services at the 64.7 nonpublic school building only to the extent required under the 64.8 Individuals with Disabilities Education Act, Public Law Number 64.9 105-17, as amended. A school district may provide special 64.10 instruction and services for such children at a neutral site as 64.11 defined in section 123.932, subdivision 9. 64.12 Sec. 29. Minnesota Statutes 1996, section 124A.036, 64.13 subdivision 1a, is amended to read: 64.14 Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all 64.15 school purposes, unless otherwise specifically provided by law, 64.16 a homeless pupilmust be consideredis a resident of the school 64.17 districtthat enrolls the pupilin which the homeless shelter or 64.18 other program, center, or facility assisting the homeless pupil 64.19 or the pupil's family is located. 64.20 Sec. 30. Minnesota Statutes 1996, section 124A.036, is 64.21 amended by adding a subdivision to read: 64.22 Subd. 1b. [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) 64.23 In those instances when the divorced parents share joint 64.24 physical custody of the child and the divorced parents reside in 64.25 different school districts, for all school purposes, unless 64.26 otherwise specifically provided by law, the child must be 64.27 considered a resident of the school district, as indicated by 64.28 the child's parents. 64.29 (b) When the child of divorced parents under paragraph (a) 64.30 resides with each parent on alternate weeks, the parents shall 64.31 be responsible for the transportation of the child to the border 64.32 of the resident school district during those weeks when the 64.33 child resides in the nonresident school district. 64.34 Sec. 31. Minnesota Statutes 1996, section 124A.036, 64.35 subdivision 4, is amended to read: 64.36 Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state 65.1 agency or a court of the state desires to place a child in a 65.2 school district which is not the child's district of 65.3 residence or to place a pupil who is a parent under section 65.4 120.101, subdivision 3, in a school district which is not the 65.5 school district in which the pupil's biological or adoptive 65.6 parent or designated guardian resides, that agency or court 65.7 shall, prior to placement, allow the district of residence an 65.8 opportunity to participate in the placement decision and notify 65.9 the district of residence, the district of attendance and the 65.10 commissioner of children, families, and learning of the 65.11 placement decision. When a state agency or court determines 65.12 that an immediate emergency placement is necessary and that time 65.13 does not permit district participation in the placement decision 65.14 or notice to the districts and the commissioner of children, 65.15 families, and learning of the placement decision prior to the 65.16 placement, the agency or court may make the decision and 65.17 placement without that participation or prior notice. The 65.18 agency or court shall notify the district of residence, the 65.19 district of attendance and the commissioner of children, 65.20 families, and learning of an emergency placement within 15 days 65.21 of the placement. 65.22 Sec. 32. Minnesota Statutes 1996, section 124C.45, 65.23 subdivision 2, is amended to read: 65.24 Subd. 2. [ACCESS TO SERVICES.] A center shall have access 65.25 to the district's regular education programs, special education 65.26 programs, technology facilities, and staff. It may contract 65.27 with individuals or post-secondary institutions. It shall seek 65.28 the involvement of community education programs, post-secondary 65.29 institutions, interagency collaboratives, community resources, 65.30 businesses, and other federal, state, and local public agencies. 65.31 Sec. 33. Minnesota Statutes 1997 Supplement, section 65.32 124C.46, subdivision 1, is amended to read: 65.33 Subdivision 1. [PROGRAM FOCUS.] (a) The programs and 65.34 services of a center must focus on academic and learning skills, 65.35 applied learning opportunities, trade and vocational skills, 65.36 work-based learning opportunities, work experience, youth 66.1 service to the community, and transition services. Applied 66.2 learning, work-based learning, and service learning may best be 66.3 developed in collaboration with a local education and 66.4 transitions partnership. In addition to offering programs, the 66.5 center shall coordinate the use of other available educational 66.6 services, special education services, social services, health 66.7 services, and post-secondary institutions in the community and 66.8 services area. 66.9 (b) Consistent with the requirements of section 127.26 to 66.10 127.39, a school district may provide an alternative education 66.11 program for a student who is within the compulsory attendance 66.12 age under section 120.06, and who is involved in severe or 66.13 repeated disciplinary action. 66.14 Sec. 34. Minnesota Statutes 1997 Supplement, section 66.15 124C.46, subdivision 2, is amended to read: 66.16 Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide 66.17 programs for secondary pupils and adults. A center may also 66.18 provide programs and services for elementary and secondary 66.19 pupils who are not attending the center to assist them in being 66.20 successful in school. An individual education plan team may 66.21 identify a center as an appropriate placement to the extent a 66.22 center can provide the student with the appropriate special 66.23 education services described in the student's plan. Pupils 66.24 eligible to be served are those age five to adults2122 and 66.25 older who qualify under the graduation incentives program in 66.26 section 126.22, subdivision 2, or those pupils who are eligible 66.27 to receive special education services under section 120.17. 66.28 Sec. 35. Minnesota Statutes 1996, section 124C.47, is 66.29 amended to read: 66.30 124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.] 66.31 An area learning center must serve as a resource for other 66.32 districts, educational, community, and business organizations. 66.33 The center may charge a fee for these services. The following 66.34 services shall be provided for a region or the state: 66.35 (1) information and research for alternative programs; 66.36 (2) regional or state workshops on awareness, 67.1 identification, programs, and support for these pupils;and67.2 (3) recommendations for staff qualifications to ensure the 67.3 most qualified staff can be selected for the programs; and 67.4 (4) recommendations for successful learning programs for 67.5 special education students placed in an alternative setting. 67.6 Sec. 36. Minnesota Statutes 1996, section 124C.48, is 67.7 amended by adding a subdivision to read: 67.8 Subd. 3. [SPECIAL EDUCATION REVENUE.] Payment of special 67.9 education revenue for nonresident pupils enrolled in the center 67.10 must be made according to section 120.17, subdivision 6. 67.11 Sec. 37. Minnesota Statutes 1996, section 126.237, is 67.12 amended to read: 67.13 126.237 [ALTERNATE INSTRUCTION REQUIRED.] 67.14 (a) Before a pupil is referred for a special education 67.15 assessment, the district must conduct and document at least two 67.16 instructional strategies, alternatives, or interventions while 67.17 the pupil is in the regular classroom. The pupil's teacher must 67.18 provide the documentation. A special education assessment team 67.19 may waive this requirement when they determine the pupil's need 67.20 for the assessment is urgent. This section may not be used to 67.21 deny a pupil's right to a special education assessment. 67.22 (b) A school district shall utilize alternative 67.23 intervention services, including the assurance of mastery 67.24 program under section 124.3111 and the first grade preparedness 67.25 program under section 124.2613, to serve at-risk students who 67.26 demonstrate a need for alternative instructional strategies or 67.27 interventions. 67.28 Sec. 38. Minnesota Statutes 1996, section 127.27, 67.29 subdivision 2, is amended to read: 67.30 Subd. 2. [DISMISSAL.] "Dismissal" means the denial of the 67.31appropriatecurrent educational program to any pupil, including 67.32 exclusion, expulsion, and suspension. It does not include 67.33 removal from class. 67.34 Sec. 39. Minnesota Statutes 1997 Supplement, section 67.35 127.27, subdivision 10, is amended to read: 67.36 Subd. 10. [SUSPENSION.] "Suspension" means an action by 68.1 the school administration, under rules promulgated by the school 68.2 board, prohibiting a pupil from attending school for a period of 68.3 no more than ten school days. If a suspension is longer than 68.4 five days, the suspending administrator must provide the 68.5 superintendent with a reason for the longer suspension. This 68.6 definition does not apply to dismissal from school for one 68.7 school day or less, except as provided in federal law for a 68.8 student with a disability. Each suspension actionshallmay 68.9 include a readmission plan. The readmission plan shall include, 68.10 where appropriate, a provision for implementing alternative 68.11 educational services upon readmission and may not be used to 68.12 extend the current suspension. The school administration may 68.13 not impose consecutive suspensions against the same pupil for 68.14 the same course of conduct, or incident of misconduct, except 68.15 where the pupil will create an immediate and substantial danger 68.16 to self or to surrounding persons or property, or where the 68.17 district is in the process of initiating an expulsion, in which 68.18 case the school administration may extend the suspensionupto a 68.19 total of 15 days. In the case of a pupil with a disability,a68.20suspension may not exceed ten school daysschool districts must 68.21 comply with applicable federal law. The school administration 68.22 shall implement alternative educational servicesto the extent68.23thatwhen the suspension exceeds five days. A separate 68.24 administrative conference is required for each period of 68.25 suspension. 68.26 Sec. 40. Minnesota Statutes 1997 Supplement, section 68.27 127.27, subdivision 11, is amended to read: 68.28 Subd. 11. [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 68.29 educational services" may include, but are not limited to, 68.30 special tutoring, modified curriculum, modified instruction, 68.31 other modifications or adaptations, instruction through 68.32 electronic media, special education services as indicated by 68.33 appropriate assessment, homebound instruction, supervised 68.34 homework, or enrollment in another district or in an alternative 68.35 learning center under section 124C.45 selected to allow the 68.36 pupil to progress toward meeting graduation standards under 69.1 section 121.11, subdivision 7c, although in a different setting. 69.2 Sec. 41. Minnesota Statutes 1997 Supplement, section 69.3 127.31, subdivision 15, is amended to read: 69.4 Subd. 15. [ADMISSION OR READMISSION PLAN.] A school 69.5 administrator shall prepare and enforce an admission or 69.6 readmission plan for any pupil who issuspended,excluded,or 69.7 expelled from school. The plan may include measures to improve 69.8 the pupil's behavior and require parental involvement in the 69.9 admission or readmission process, and may indicate the 69.10 consequences to the pupil of not improving the pupil's behavior. 69.11 Sec. 42. Minnesota Statutes 1997 Supplement, section 69.12 127.32, is amended to read: 69.13 127.32 [APPEAL.] 69.14 A party to an exclusion or expulsion decision made under 69.15 sections 127.26 to 127.39 may appeal the decision to the 69.16 commissioner of children, families, and learning within 21 69.17 calendar days of school board action. Upon being served with a 69.18 notice of appeal, the district shall provide the commissioner 69.19 and the parent or guardian with a complete copy of the hearing 69.20 record within five days of its receipt of the notice of appeal. 69.21 All written submissions by the appellant must be submitted and 69.22 served on the respondent within ten days of its actual receipt 69.23 of the transcript. All written submissions by the respondent 69.24 must be submitted and served on the appellant within ten days of 69.25 its actual receipt of the written submissions of the appellant. 69.26 The decision of the school board must be implemented during the 69.27 appeal to the commissioner. 69.28 In an appeal under this section, the commissioner may 69.29 affirm the decision of the agency, may remand the decision for 69.30 additional findings, or may reverse or modify the decision if 69.31 the substantial rights of the petitionersmayhave been 69.32 prejudiced because the administrative findings, inferences, 69.33 conclusions, or decisions are: 69.34 (1) in violation of constitutional provisions; 69.35 (2) in excess of the statutory authority or jurisdiction of 69.36 the school district; 70.1 (3) made upon unlawful procedure, except as provided in 70.2 section 127.311; 70.3 (4) affected by other error of law; 70.4 (5) unsupported by substantial evidence in view of the 70.5 entire record submitted; or 70.6 (6) arbitrary or capricious. 70.7 The commissioner or the commissioner's representative shall make 70.8 a final decision based upon the recordof evidence presented at70.9the hearing. The commissioner shall issue a decision within 30 70.10 calendar days of receiving the entire record and the parties' 70.11 written submission on appeal. The commissioner's decision shall 70.12 be final and binding upon the parties after the time for appeal 70.13 expires under section 127.33. 70.14 Sec. 43. Minnesota Statutes 1997 Supplement, section 70.15 127.36, subdivision 1, is amended to read: 70.16 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 70.17 board shall report each exclusion or expulsion within 30 days of 70.18 the effective date of the action to the commissioner of 70.19 children, families, and learning. This report shall include a 70.20 statement of alternative educational services given the pupil 70.21before beginning exclusion or expulsion proceedings,and the 70.22 reason for, the effective date, and the duration of the 70.23 exclusion or expulsion. 70.24 Sec. 44. Minnesota Statutes 1997 Supplement, section 70.25 127.38, is amended to read: 70.26 127.38 [POLICIES TO BE ESTABLISHED.] 70.27 (a) The commissioner of children, families, and learning 70.28 shall promulgate guidelines to assist each school board. Each 70.29 school board shall establish uniform criteria for dismissal and 70.30 adopt written policies and rules to effectuate the purposes of 70.31 sections 127.26 to 127.39. The policies shall emphasize 70.32 preventing dismissals through early detection of problems and 70.33 shall be designed to address students' inappropriate behavior 70.34 from recurring. The policies shall recognize the continuing 70.35 responsibility of the school for the education of the pupil 70.36 during the dismissal period. The alternative educational 71.1 services, if the pupil wishes to take advantage of them, must be 71.2 adequate to allow the pupil to make progress towards meeting the 71.3 graduation standards adopted under section 121.11, subdivision 71.4 7c, and help prepare the pupil for readmission. 71.5 (b) An area learning center under section 124C.45 may not 71.6 prohibit an expelled or excluded pupil from enrolling solely 71.7 because a district expelled or excluded the pupil. The board of 71.8 the area learning center may use the provisions of The Pupil 71.9 Fair Dismissal Act to exclude a pupil or to require an admission 71.10 plan. 71.11 (c) The commissioner shall actively encourage and assist 71.12 school districts to cooperatively establish alternative 71.13 educational services within school buildings or at alternative 71.14 program sites that offer instruction to pupils who are dismissed 71.15 from school for willfully engaging in dangerous, disruptive, or 71.16 violent behavior, including for possessing a firearm in a school 71.17 zone. 71.18 Sec. 45. Minnesota Statutes 1996, section 256B.0625, 71.19 subdivision 26, is amended to read: 71.20 Subd. 26. [SPECIAL EDUCATION SERVICES.] Medical assistance 71.21 covers medical services identified in a recipient's 71.22 individualized education plan and covered under the medical 71.23 assistance state plan. The services may be provided by a 71.24 Minnesota school district that is enrolled as a medical 71.25 assistance provider or its subcontractor, and only if the 71.26 services meet all the requirements otherwise applicable if the 71.27 service had been provided by a provider other than a school 71.28 district, in the following areas: medical necessity, 71.29 physician's orders, documentation, personnel qualifications, and 71.30 prior authorization requirements. Services of a speech-language 71.31 pathologist provided under this section are covered 71.32 notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item 71.33 L, if the person: 71.34 (1) holds a masters degree in speech-language pathology; 71.35 (2) is licensed by the Minnesota board of teaching as an 71.36 educational speech-language pathologist; and 72.1 (3) either has a certificate of clinical competence from 72.2 the American Speech and Hearing Association, has completed the 72.3 equivalent educational requirements and work experience 72.4 necessary for the certificate or has completed the academic 72.5 program and is acquiring supervised work experience to qualify 72.6 for the certificate. Medical assistance coverage for medically 72.7 necessary services provided under other subdivisions in this 72.8 section may not be denied solely on the basis that the same or 72.9 similar services are covered under this subdivision. 72.10 Sec. 46. Laws 1993, chapter 224, article 3, section 32, is 72.11 amended to read: 72.12 Sec. 32. [ASL GUIDELINES.] 72.13 (a) In determining appropriate licensure requirements for 72.14 teachers of deaf and hard of hearing students under Minnesota 72.15 Statutes, section 125.189, the board of teaching shall develop 72.16 the requirements according to the guidelines described in this 72.17 section. 72.18 (b) Each teacher must complete the American sign language 72.19 sign communication proficiency interview or a comparable 72.20 American sign language evaluation that the board of teaching, 72.21 the Minnesota association of deaf citizens, and the Minnesota 72.22 council for the hearing impaired accept as a means for 72.23 establishing the teacher's baseline level of American sign 72.24 language skills. A teacher shall not be charged for this 72.25 evaluation. 72.26 (c) Each teacher must complete 60 continuing education 72.27 credits in American sign language, American sign language 72.28 linguistics, or deaf culture for every 120 continuing education 72.29 credits the teacher is required to complete to renew a teaching 72.30 license. 72.31 (d)As a condition of obtainingIn order to obtain an 72.32 initial license to teach deaf and hard of hearing students, or 72.33 to apply for a Minnesota teaching license, after being licensed 72.34 to teach in another state, a person must demonstrate in the sign 72.35 communication proficiency interview an intermediate plus level 72.36 of proficiency in American sign language. 73.1 (e) Each teacher applying to renew a teaching licenseand73.2each teacher holding a teaching license from another state who73.3wishes to apply for a Minnesota teaching licensemust take the 73.4 American sign language sign communication proficiency interview 73.5 or a comparable American sign language evaluation every five 73.6 years until the teacher demonstrates a minimum, or survival 73.7 plus, level of proficiency in American sign language. 73.8 (f) A teacher working directly with students whose primary 73.9 language is American sign language should demonstrate at least 73.10 an advanced level of proficiency in American sign language. The 73.11 board should not consider a minimum, or survival plus, level of 73.12 proficiency adequate for providing direct instruction to 73.13 students whose primary language is American sign language. 73.14 (g) To renew a teaching license, a teacher must comply with 73.15 paragraphs (c) and (e) in addition to other applicable board 73.16 requirements. A teacher's ability to demonstrate a minimum, or 73.17 survival plus, level of proficiency in American sign language is 73.18 not a condition for renewing the teacher's license. 73.19 (h) A teacher who demonstrates an increased proficiency in 73.20 American sign language skill in the American sign language sign 73.21 communication proficiency interview or a comparable American 73.22 sign language evaluation shall receive credit toward completing 73.23 the requirements of paragraph (c). The number of continuing 73.24 education credits the teacher receives is based on the teacher's 73.25 increased level of proficiency from the teacher's baseline level: 73.26 (1) 35 continuing education credits for demonstrating an 73.27 intermediate level of proficiency; 73.28 (2) 40 continuing education credits for demonstrating an 73.29 intermediate plus level of proficiency; 73.30 (3) 45 continuing education credits for demonstrating an 73.31 advanced level of proficiency; 73.32 (4) 50 continuing education credits for demonstrating an 73.33 advanced plus level of proficiency; 73.34 (5) 55 continuing education credits for demonstrating a 73.35 superior level of proficiency; and 73.36 (6) 60 continuing education credits for demonstrating a 74.1 superior plus level of proficiency. 74.2 Sec. 47. Laws 1997, First Special Session chapter 4, 74.3 article 2, section 51, subdivision 15, is amended to read: 74.4 Subd. 15. [SPECIAL EDUCATION AID.] For special education 74.5 aid according to Minnesota Statutes, section 124.32: 74.6 $282,505,000 ..... 1998 74.7$382,519,000$383,220,000 ..... 1999 74.8 The 1998 appropriation includes $24,346,000 for 1997 and 74.9 $258,159,000 for 1998. 74.10 The 1999 appropriation includes$28,684,000$28,696,000 for 74.11 1998 and$353,835,000$353,973,000 for 1999. 74.12 $458,000 of the 1999 current year account is appropriated 74.13 to the department of human services to cover additional medical 74.14 assistance costs associated with state law changes regarding 74.15 speech-language pathologists in Minnesota Statutes, section 74.16 256B.0625, subdivision 26. 74.17 $93,000 of the 1999 current year account is appropriated to 74.18 the department of human services to transfer into the health 74.19 care access fund for the purposes of state law changes regarding 74.20 speech-language pathologists in Minnesota Statutes, section 74.21 256B.0625, subdivision 26. 74.22 For fiscal years 2000 and 2001, the department of children, 74.23 families, and learning must reimburse the department of human 74.24 services for medical assistance and MinnesotaCare costs 74.25 associated with state law changes regarding the speech-language 74.26 pathologists in Minnesota Statutes, section 256B.0625, 74.27 subdivision 26. 74.28 Sec. 48. Laws 1997, First Special Session chapter 4, 74.29 article 2, section 51, subdivision 25, is amended to read: 74.30 Subd. 25. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 74.31 HOMELESS CHILDREN.] For matching grants for education programs 74.32 for homeless children: 74.33$400,000$1,100,000 ..... 1998 74.34 This appropriation is available until June 30, 1999. 74.35 Sec. 49. Laws 1997, First Special Session chapter 4, 74.36 article 2, section 51, subdivision 29, is amended to read: 75.1 Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for 75.2 the first grade preparedness program under Minnesota Statutes, 75.3 section 124.2613, and for school sites that have provided a 75.4 full-day kindergarten option for kindergarten students enrolled 75.5 in fiscal years 1996 and 1997: 75.6 $5,000,000 ..... 1998 75.7$5,000,000$10,000,000 ..... 1999 75.8 (b) To be a qualified site, licensed teachers must have 75.9 taught the optional full-day kindergarten classes. A district 75.10 that charged a fee for students participating in an optional 75.11 full-day program is eligible to receive the grant to provide 75.12 full-day kindergarten for all students as required by Minnesota 75.13 Statutes, section 124.2613, subdivision 4. Districts with 75.14 eligible sites must apply to the commissioner of children, 75.15 families, and learning for a grant. 75.16 (c) This appropriation must first be used to fund programs 75.17 operating during the 1996-1997 school year under paragraph (b) 75.18 and Minnesota Statutes, section 124.2613. Any remaining funds 75.19 may be used to expand the number of sites providing first grade 75.20 preparedness programs. 75.21 Sec. 50. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION 75.22 AND SERVICES.] 75.23 (a) The state board of education must amend all rules 75.24 relating to providing special instruction and services to 75.25 children with a disability so that the rules do not impose 75.26 requirements that exceed federal law. Consistent with the 75.27 report from the commissioner to compare federal and state 75.28 special education law, the state board may use the expedited 75.29 process under Minnesota Statutes 1997, section 14.389, to amend 75.30 these rules. 75.31 (b) As of July 1, 1999, any rules relating to providing 75.32 special instruction and services to children with a disability 75.33 are invalid to the extent they exceed the requirements in 75.34 federal law. 75.35 Sec. 51. [REPORT TO COMPARE FEDERAL AND STATE SPECIAL 75.36 EDUCATION LAW.] 76.1 Subdivision 1. [REPORT.] The commissioner of children, 76.2 families, and learning shall prepare a report comparing existing 76.3 and currently proposed federal laws and regulations and state 76.4 laws and rules governing special education, which indicates 76.5 those state laws and rules governing special education that 76.6 exceed or expand upon minimum requirements under federal special 76.7 education law or regulations. The commissioner shall make the 76.8 report available by September 30, 1998, to the public, the state 76.9 board of education, and the education committees of the 76.10 legislature for consideration of amending state rules. 76.11 Sec. 52. [SPEECH-LANGUAGE PATHOLOGISTS.] 76.12 The board of teaching shall allow individuals who hold a 76.13 certificate of clinical competence from the American 76.14 Speech-Language-Hearing Association to be licensed as 76.15 speech-language pathologists. 76.16 Sec. 53. [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE 76.17 SERVICES.] 76.18 The board of teaching, in order to comply with section 45, 76.19 shall by rule allow individuals who hold a certificate of 76.20 clinical competence from the American Speech-Language-Hearing 76.21 Association to be licensed as speech-language pathologists. 76.22 Sec. 54. [ADVISORY TASK FORCE ON ACCESS TO 76.23 MEDICALLY-RELATED SPECIAL EDUCATION SERVICES.] 76.24 Subdivision 1. [ESTABLISHMENT.] (a) The commissioner of 76.25 children, families, and learning shall create an advisory task 76.26 force under Minnesota Statutes, section 15.014, to make 76.27 recommendations on the role of public and private health plans 76.28 in financing and delivering special education services under 76.29 Minnesota Statutes, sections 120.17, 120.1701, 120.1703 and 76.30 120.1705 to the extent such services are also covered under a 76.31 health plan contract or state health care program. The advisory 76.32 task force shall include one representative from each of the 76.33 following: one representative from each of the departments of 76.34 health, human services, commerce, employee relations, and 76.35 department of children, families and learning, recommended by 76.36 their respective commissioner; a representative of the Minnesota 77.1 council of health plans; a representative of the insurance 77.2 federation of Minnesota; a representative of a Minnesota 77.3 employer; a representative of the council on disabilities; a 77.4 representative recommended jointly by ARC and PACER; a 77.5 representative of the Minnesota association of special 77.6 educators; a representative of the Minnesota school boards 77.7 association; and a member of the interagency coordinating 77.8 commission, recommended by the commission chair. The 77.9 commissioner of children, families and learning shall appoint an 77.10 additional member who shall serve as the advisory task force 77.11 chair, and who shall convene the task force beginning May 1998. 77.12 (b) The advisory task force shall study and make 77.13 recommendations on the following issues: 77.14 (1) the current and appropriate future role of purchasers 77.15 of health coverage, including medical assistance, other state 77.16 health care programs, and employers in paying for medically 77.17 related special education services; 77.18 (2) systems and procedures needed to facilitate appropriate 77.19 sharing of information necessary for coordinating care and 77.20 monitoring the quality of care; 77.21 (3) accountability for the quality and cost of health care 77.22 services provided under an individual education plan, an 77.23 individual family service plan or other standardized written 77.24 plan for a child with disabilities; 77.25 (4) technical aspects of the billing and reimbursement 77.26 system between school districts and health plans, including 77.27 payment of enrollee cost sharing; and 77.28 (5) any statutory changes needed to effectively implement 77.29 task force recommendations. 77.30 Subd. 2. [REPORT; EXPIRATION.] The commissioner shall 77.31 submit a written report, with the recommendations of the 77.32 advisory task force, to the legislature in compliance with 77.33 section 3.195 by December 1, 1998, that discusses and makes 77.34 recommendations on those issues listed in subdivision 1, 77.35 paragraph (b). The advisory task force expires January 15, 1999. 77.36 Sec. 55. [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.] 78.1 Special education base revenue for independent school 78.2 district No. 535, Rochester, is increased by $150,000 for fiscal 78.3 year 1998 to reflect the increased special education costs 78.4 associated with the opening of a new facility for juvenile 78.5 offenders in Olmsted county. 78.6 Sec. 56. [OSSEO LEVY.] 78.7 For taxes payable in 1999 only, independent school district 78.8 No. 279, Osseo, may levy a tax in an amount not to exceed 78.9 $300,000. The proceeds of this levy must be used to provide 78.10 instructional services for at-risk children. 78.11 Sec. 57. [DEPARTMENT OF HUMAN SERVICES.] 78.12 The department of human services shall report to the 78.13 legislature on January 15 for the years 1999, 2000, and 2001, 78.14 the medical assistance MinnesotaCare reimbursed costs of special 78.15 education services, which are covered services under Minnesota 78.16 Statutes, chapter 256B. If the November 1998 forecast for the 78.17 state medical assistance expenditures for special education 78.18 services which are covered services under Minnesota Statutes, 78.19 chapter 256B, exceeds $8,000,000 per year, the department of 78.20 children, families, and learning must develop a plan to allocate 78.21 additional resources to cover the excess costs. 78.22 Sec. 58. [APPROPRIATIONS.] 78.23 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 78.24 LEARNING.] The sums indicated in this section are appropriated 78.25 from the general fund to the department of children, families, 78.26 and learning for the fiscal years designated. 78.27 Subd. 2. [STATEWIDE THIRD-PARTY BILLING SYSTEM; 78.28 ASSISTANCE.] For developing and implementing an effective and 78.29 efficient statewide third-party billing system under section 2: 78.30 $200,000 ..... 1999 78.31 Funds remain available until expended. 78.32 Subd. 3. [LITIGATION COSTS.] For paying a portion of the 78.33 litigation costs a district actually incurs under section 26: 78.34 $ 500,000 ..... 1999 78.35 If the amount appropriated is insufficient to fully fund 78.36 the aid for litigation costs according to section 124.32, 79.1 subdivision 13, the commissioner shall prorate the appropriation 79.2 to districts based on the amount of aid calculated for each 79.3 district. 79.4 Sec. 59. [REPEALER.] 79.5 Subdivision 1. Minnesota Rules, part 3525.2750, subpart 1, 79.6 item B, is repealed. 79.7 Subd. 2. Minnesota Statutes 1996, section 124.32, 79.8 subdivision 13, is repealed June 30, 2004. 79.9 Sec. 60. [EFFECTIVE DATE.] 79.10 Sections 9, 45, 52, 53, 54, and 59, subdivision 1, are 79.11 effective the day following final enactment. 79.12 ARTICLE 3 79.13 INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY 79.14 Section 1. Minnesota Statutes 1996, section 120.1701, 79.15 subdivision 5, is amended to read: 79.16 Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 79.17 A school district, group of districts, or special education 79.18 cooperative, in cooperation with the health and human service 79.19 agencies located in the county or counties in which the district 79.20 or cooperative is located, shall establish an interagency early 79.21 intervention committee for children with disabilities under age 79.22 five and their families under this section, and for children 79.23 with disabilities ages three to 22 consistent with the 79.24 requirements under sections 120.1703 and 120.1705. Committees 79.25 shall include representatives of local and regional health, 79.26 education, and county human service agencies; county boards; 79.27 school boards; early childhood family education programs; 79.28 parents of young children with disabilities under age 12; 79.29 current service providers; and may also include representatives 79.30 from other private or public agencies and school nurses. The 79.31 committee shall elect a chair from among its members and shall 79.32 meet at least quarterly. 79.33 (b) The committee shall develop and implement interagency 79.34 policies and procedures concerning the following ongoing duties: 79.35 (1) develop public awareness systems designed to inform 79.36 potential recipient families of available programs and services; 80.1 (2) implement interagency child find systems designed to 80.2 actively seek out, identify, and refer infants and young 80.3 children with, or at risk of, disabilities and their families; 80.4 (3) establish and evaluate the identification, referral, 80.5 child and family assessment systems, procedural safeguard 80.6 process, and community learning systems to recommend, where 80.7 necessary, alterations and improvements; 80.8 (4) assure the development of individualized family service 80.9 plans for all eligible infants and toddlers with disabilities 80.10 from birth through age two, and their families, and individual 80.11 education plans and individual service plans when necessary to 80.12 appropriately serve children with disabilities, age three and 80.13 older, and their families and recommend assignment of financial 80.14 responsibilities to the appropriate agencies. Agencies are 80.15 encouraged to develop individual family service plans for 80.16 children with disabilities, age three and older; 80.17 (5) implement a process for assuring that services involve 80.18 cooperating agencies at all steps leading to individualized 80.19 programs; 80.20 (6) facilitate the development of a transitional plan if a 80.21 service provider is not recommended to continue to provide 80.22 services; 80.23 (7) identify the current services and funding being 80.24 provided within the community for children with disabilities 80.25 under age five and their families; 80.26 (8) develop a plan for the allocation and expenditure of 80.27 additional state and federal early intervention funds under 80.28 United States Code, title 20, section 1471 et seq. (Part H, 80.29 Public Law Number 102-119) and United States Code, title 20, 80.30 section 631, et seq. (Chapter I, Public Law Number 89-313); and 80.31 (9) develop a policy that is consistent with section 13.05, 80.32 subdivision 9, and federal law to enable a member of an 80.33 interagency early intervention committee to allow another member 80.34 access to data classified as not public. 80.35 (c) The local committee shall also: 80.36 (1) participate in needs assessments and program planning 81.1 activities conducted by local social service, health and 81.2 education agencies for young children with disabilities and 81.3 their families; 81.4 (2) review and comment on the early intervention section of 81.5 the total special education system for the district, the county 81.6 social service plan, the section or sections of the community 81.7 health services plan that address needs of and service 81.8 activities targeted to children with special health care needs, 81.9 and the section of the maternal and child health special project 81.10 grants that address needs of and service activities targeted to 81.11 children with chronic illness and disabilities; and 81.12 (3) prepare a yearly summary on the progress of the 81.13 community in serving young children with disabilities, and their 81.14 families, including the expenditure of funds, the identification 81.15 of unmet service needs identified on the individual family 81.16 services plan and other individualized plans, and local, state, 81.17 and federal policies impeding the implementation of this section. 81.18 (d) The summary must be organized following a format 81.19 prescribed by the commissioner of the state lead agency and must 81.20 be submitted to each of the local agencies and to the state 81.21 interagency coordinating council by October 1 of each year. 81.22 The departments of children, families, and learning, 81.23 health, and human services must provide assistance to the local 81.24 agencies in developing cooperative plans for providing services. 81.25 Sec. 2. [120.1703] [COORDINATED INTERAGENCY SERVICES.] 81.26 Subdivision 1. [CITATION.] Sections 120.1703 and 120.1705 81.27 shall be cited as the "Interagency Services for Children with 81.28 Disabilities Act." 81.29 Subd. 2. [PURPOSE.] It is the policy of the state to 81.30 develop and implement a coordinated, multidisciplinary, 81.31 interagency intervention service system for children ages three 81.32 to 22 with disabilities. 81.33 Subd. 3. [DEFINITIONS.] For purposes of sections 120.1703 81.34 and 120.1705, the following terms have the meanings given them: 81.35 (a) "Health plan" means (i) a health plan under section 81.36 62Q.01, subdivision 3; (ii) a county-based purchasing plan under 82.1 section 256B.692; (iii) a self insured health plan established 82.2 by a local government under section 471.617; or (iv) self 82.3 insured health coverage provided by the state to its employees 82.4 or retirees. 82.5 (b) For purposes of this section, "health plan company" 82.6 means an entity that issues a health plan as defined in 82.7 paragraph (a). 82.8 (c) "Individual interagency intervention plan" means a 82.9 standardized written plan describing those programs or services 82.10 and the accompanying funding sources available to eligible 82.11 children with disabilities. 82.12 (d) "Interagency intervention service system" means a 82.13 system that coordinates services and programs required in state 82.14 and federal law to meet the needs of eligible children with 82.15 disabilities ages three to 22, including: 82.16 (1) services provided under the following programs or 82.17 initiatives administered by state or local agencies: 82.18 (i) the maternal and child health program under title V of 82.19 the Social Security Act, United States Code, title 42, sections 82.20 701 to 709; 82.21 (ii) the Individuals with Disabilities Education Act under 82.22 United States Code, title 20, chapter 33, subchapter II, 82.23 sections 1411 to 1420; 82.24 (iii) medical assistance under the Social Security Act, 82.25 United States Code, title 42, chapter 7, subchapter XIX, section 82.26 1396 et seq.; 82.27 (iv) the Developmental Disabilities Assistance and Bill of 82.28 Rights Act, United States Code, title 42, chapter 75, subchapter 82.29 II, sections 6021 to 6030, Part B; 82.30 (v) the Head Start Act, United States Code, title 42, 82.31 chapter 105, subchapter II, sections 9831 to 9852; 82.32 (vi) rehabilitation services provided under chapter 268A; 82.33 (vii) juvenile court act services provided under sections 82.34 260.011 to 260.301; 82.35 (viii) the children's mental health collaboratives under 82.36 section 245.493; 83.1 (ix) the family service collaboratives under section 83.2 121.8355; 83.3 (x) the family community support plan under section 83.4 245.4881, subdivision 4; 83.5 (xi) the Minnesota care program under chapter 256L; 83.6 (xii) the community health services grants under chapter 83.7 145; and 83.8 (xiii) the community social services act funding under the 83.9 Social Security Act, USC, title 42, sections 1397 to 1397f; 83.10 (2) services provided under a health plan in conformity 83.11 with an individual family service plan or an individual 83.12 education plan; and 83.13 (3) additional appropriate services that local agencies and 83.14 counties provide on an individual need basis upon determining 83.15 eligibility and receiving a request from the interagency early 83.16 intervention committee and the child's parent. 83.17 (e) "Children with disabilities" has the meaning given in 83.18 section 120.03. 83.19 (f) A "standardized written plan" means those individual 83.20 services or programs available through the interagency 83.21 intervention service system to an eligible child other than the 83.22 services or programs described in the child's individual 83.23 education plan or the child's individual family service plan. 83.24 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 83.25 shall convene an 18-member interagency committee to develop and 83.26 implement a coordinated, multidisciplinary, interagency 83.27 intervention service system for children ages three to 22 with 83.28 disabilities. The commissioners of commerce, children, 83.29 families, and learning, health, human rights, human services, 83.30 economic security, and corrections shall each appoint two 83.31 committee members from their departments; the association of 83.32 Minnesota counties shall appoint two county representatives, one 83.33 of whom must be an elected official, as committee members; and 83.34 the Minnesota school boards association and the school nurse 83.35 association of Minnesota shall each appoint one committee 83.36 member. The committee shall select a chair from among its 84.1 members. 84.2 (b) The committee shall: 84.3 (1) identify and assist in removing state and federal 84.4 barriers to local coordination of services provided to children 84.5 with disabilities; 84.6 (2) identify adequate, equitable, and flexible funding 84.7 sources to streamline these services; 84.8 (3) develop guidelines for implementing policies that 84.9 ensure a comprehensive and coordinated system of all state and 84.10 local agency services, including multidisciplinary assessment 84.11 practices for children with disabilities ages three to 22; 84.12 (4) develop, consistent with federal law, a standardized 84.13 written plan for providing services to a child with 84.14 disabilities; 84.15 (5) identify how current systems for dispute resolution can 84.16 be coordinated and develop guidelines for that coordination; 84.17 (6) develop an evaluation process to measure the success of 84.18 state and local interagency efforts in improving the quality and 84.19 coordination of services to children with disabilities ages 84.20 three to 22; 84.21 (7) develop guidelines to assist the governing boards of 84.22 the interagency early intervention committees in carrying out 84.23 the duties assigned in section 120.1705, subdivision 1, 84.24 paragraph (b); and 84.25 (8) carry out other duties necessary to develop and 84.26 implement within communities a coordinated, multidisciplinary, 84.27 interagency intervention service system for children with 84.28 disabilities. 84.29 (c) The committee shall consult on an on-going basis with 84.30 the state education advisory committee for special education and 84.31 the governor's interagency coordinating council in carrying out 84.32 its duties under this section, including assisting the governing 84.33 boards of the interagency early intervention committees. 84.34 Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The 84.35 commissioner of children, families, and learning, based on 84.36 recommendations from the state interagency committee, shall 85.1 issue a request for proposals by January 1, 1999, for grants to 85.2 the governing boards of interagency intervention committees 85.3 under section 120.1705 or a combination of one or more counties 85.4 and school districts to establish five voluntary interagency 85.5 intervention demonstration projects. One grant shall be used to 85.6 implement a coordinated service system for all eligible children 85.7 with disabilities up to age 5 who received services under 85.8 section 120.1701. Each project must be operational by July 1, 85.9 1999. The governing boards of the interagency early 85.10 intervention committees and the counties and school districts 85.11 receiving project grants must develop efficient ways to 85.12 coordinate services and funding for children with disabilities 85.13 ages three to 22, consistent with the requirements of sections 85.14 120.1703 and 120.1705 and the guidelines developed by the state 85.15 interagency committee under this section. 85.16 (b) The state interagency committee shall evaluate the 85.17 demonstration projects and provide the evaluation results to 85.18 interagency early intervention committees. 85.19 Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in sections 85.20 120.1703 and 120.1705 relieves a health plan company, third 85.21 party administrator or other third-party payer of an obligation 85.22 to pay for, or changes the validity of an obligation to pay for, 85.23 services provided to children with disabilities ages three to 22 85.24 and their families. 85.25 Subd. 7. [AGENCY OBLIGATION.] Nothing in sections 120.1703 85.26 and 120.1705 removes the obligation of the state, counties, 85.27 local school districts, a regional agency, or a local agency or 85.28 organization to comply with any federal or state law that 85.29 mandates responsibility for finding, assessing, delivering, 85.30 assuring, or paying for education or related services for 85.31 children with disabilities and their families. 85.32 Sec. 3. [120.1705] [INTERAGENCY EARLY INTERVENTION 85.33 COMMITTEE RESPONSIBILITIES.] 85.34 Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing 85.35 boards of the interagency early intervention committees are 85.36 responsible for developing and implementing interagency policies 86.1 and procedures to coordinate services at the local level for 86.2 children with disabilities ages three to 22 under guidelines 86.3 established by the state interagency committee under section 86.4 120.1703, subdivision 4. Consistent with the requirements in 86.5 sections 120.1703 and 120.1705, the governing boards of the 86.6 interagency early intervention committees shall organize as a 86.7 joint powers board under section 471.59 or enter into an 86.8 interagency agreement that establishes a governance structure. 86.9 (b) The governing board of each interagency early 86.10 intervention committee as defined in section 120.1701, 86.11 subdivision 5, paragraph (a), which may include a juvenile 86.12 justice professional, shall: 86.13 (1) identify and assist in removing state and federal 86.14 barriers to local coordination of services provided to children 86.15 with disabilities; 86.16 (2) identify adequate, equitable, and flexible use of 86.17 funding by local agencies for these services; 86.18 (3) implement policies that ensure a comprehensive and 86.19 coordinated system of all state and local agency services, 86.20 including multidisciplinary assessment practices, for children 86.21 with disabilities ages three to 22; 86.22 (4) use a standardized written plan for providing services 86.23 to a child with disabilities developed under section 120.1703; 86.24 (5) access the coordinated dispute resolution system and 86.25 incorporate the guidelines for coordinating services at the 86.26 local level, consistent with section 120.1703; 86.27 (6) use the evaluation process to measure the success of 86.28 the local interagency effort in improving the quality and 86.29 coordination of services to children with disabilities ages 86.30 three to 22 consistent with section 120.1703; 86.31 (7) develop a transitional plan for children moving from 86.32 the interagency early childhood intervention system under 86.33 section 120.1701 into the interagency intervention service 86.34 system under this section; 86.35 (8) coordinate services and facilitate payment for services 86.36 from public and private institutions, agencies, and health plan 87.1 companies; and 87.2 (9) share needed information consistent with state and 87.3 federal data practices requirements. 87.4 Subd. 2. [SERVICES.] (a) Parents, physicians, other health 87.5 care professionals including school nurses, and education and 87.6 human services providers jointly must determine appropriate and 87.7 necessary services for eligible children with disabilities ages 87.8 three to 22. The services provided to the child under this 87.9 section must conform with the child's standardized written 87.10 plan. The governing board of an interagency early intervention 87.11 committee must provide those services contained in a child's 87.12 individual education plan and those services for which a legal 87.13 obligation exists to the extent funding is available. 87.14 (b) Nothing in section 120.1703 or section 120.1705 87.15 increases or decreases the obligation of the state, county, 87.16 regional agency, local school district, or local agency or 87.17 organization to pay for education, health care or social 87.18 services. 87.19 (c) A health plan may not exclude any medically necessary 87.20 covered service solely because the service is or could be 87.21 identified in a child's individual family service plan, 87.22 individual education plan, a plan established under section 504 87.23 of the federal Rehabilitation Act of 1973, or a student's 87.24 individual health plan. 87.25 Subd. 3. [IMPLEMENTATION TIMELINE.] (a) By July 1, 2000, 87.26 all governing boards of interagency early intervention 87.27 committees statewide must implement a coordinated service system 87.28 for children up to age five with disabilities consistent with 87.29 the requirements of sections 120.1703 and 120.1705 and the 87.30 evaluation results from the demonstration projects under section 87.31 120.1703, subdivision 5. Children with disabilities up to the 87.32 age of 22 shall be eligible for coordinated services and their 87.33 eligibility to receive such services under this section shall be 87.34 phased-in over a four-year period as follows: 87.35 (1) July 1, 2001, children up to age nine become eligible; 87.36 (2) July 1, 2002, children up to age 14 become eligible; 88.1 and 88.2 (3) July 1, 2003, children up to age 22 become eligible. 88.3 Sec. 4. Minnesota Statutes 1996, section 121.932, is 88.4 amended by adding a subdivision to read: 88.5 Subd. 7. [ESTABLISHMENT.] (a) The commissioner of 88.6 children, families, and learning shall establish a program to 88.7 provide statewide licenses to commercial electronic databases of 88.8 periodicals, encyclopedias, and associated reference materials 88.9 for school media centers and public libraries. The commissioner 88.10 shall solicit proposals for access licenses to commercial 88.11 vendors of the databases. Responses to those proposals shall be 88.12 evaluated by staff of the office of library development and 88.13 services, in the department of children, families, and learning, 88.14 Minitex staff, and a representative panel of school media 88.15 specialists and public librarians. 88.16 (b) Access to the selected databases shall be made 88.17 available to a school media center or a public library as 88.18 defined in Minnesota Statutes, section 134.001, subdivision 2. 88.19 With appropriate authentication, any user of a library may have 88.20 access to the databases from a remote site. 88.21 (c) The commissioner shall charge fees sufficient to 88.22 recover the costs of the licenses. The fees shall be deposited 88.23 in the general fund and are appropriated to the commissioner for 88.24 the purposes of this subdivision. 88.25 Sec. 5. Minnesota Statutes 1997 Supplement, section 88.26 126.79, subdivision 6, is amended to read: 88.27 Subd. 6. [PROGRAM COMPONENTS.] Each learn and earn 88.28 graduation achievement program must provide the opportunity for 88.29 participating students to complete: 88.30 (1) 250 hours each year, not including regular required 88.31 classroom hours, in basic education competency skills; 88.32 (2) 250 hours each year of service to the community 88.33service; and 88.34 (3) 250 hours each year of cultural enrichment and personal 88.35 development, including but not limited to adult mentoring; 88.36 participating in community cultural events; developing life 89.1 skills for use in the home, workplace, and community; and 89.2 learning to set goals, manage time, and make appropriate 89.3 behavior choices for varying social situations. 89.4 Sec. 6. Minnesota Statutes 1997 Supplement, section 89.5 126.79, subdivision 7, is amended to read: 89.6 Subd. 7. [PROGRAM INCENTIVES.] (a) Each participating 89.7 student shall receive a monetary stipend for each hour spent in 89.8 a program component activity, plus a bonus upon completion of 89.9 each component during each year of the program. 89.10 (b) An additional amount equal to or greater than each 89.11 student's earned stipends and bonuses must be deposited for the 89.12 student in a post-secondary opportunities interest-bearing 89.13 account, established by the commissioner through the higher 89.14 education services office. A student may, upon graduation from 89.15 high school, use the funds accumulated for the student toward 89.16 the costs, including tuition, books, and lab fees, of attending 89.17 a Minnesota post-secondary institution orparticipating in a89.18Minnesota post-secondary programin a career training program. 89.19 Funds accumulated for a student shall be available to the 89.20 student from the time the student graduates from high school 89.21 until ten years after the date the student entered the learn and 89.22 earn graduation achievement program. After ten years, the 89.23 commissioner shall close the student's account and any remaining 89.24 money in the account shall revert to the general fund. 89.25 The commissioner shall establish a procedure for providing 89.26 the monetary stipends and bonuses to students. The commissioner 89.27 may delegate this authority to grantees. 89.28 Sec. 7. Minnesota Statutes 1997 Supplement, section 89.29 126.79, subdivision 8, is amended to read: 89.30 Subd. 8. [PROGRAM COORDINATOR.] The local learn and earn 89.31 program coordinator must maintain contact with all participating 89.32 students and their families; work with the school to link 89.33 students with the resources needed to improve their educational 89.34 skills; arrange for service to the communityserviceand 89.35 cultural enrichment opportunities for students; maintain records 89.36 regarding student completion of program component hours; and 90.1 perform other administrative duties as necessary. A program 90.2 coordinator must, to the extent possible, agree to remain with 90.3 the program for four years to provide continuity of adult 90.4 contact to the participating students. 90.5 Sec. 8. Minnesota Statutes 1997 Supplement, section 90.6 126.79, subdivision 9, is amended to read: 90.7 Subd. 9. [EVALUATION AND REPORTS.] The commissioner shall 90.8 collect information about participating studentsand a90.9demographically similar control groupand shall evaluate the 90.10 short-term and long-term benefits participating students receive 90.11 from the learn and earn graduation achievement program, based on 90.12 the outcome measures specified in subdivision 2, and any other 90.13 criteria established by the commissioner as part of the grant 90.14 application process.The evaluation must include a statistical90.15comparison of students participating in the program and the90.16control group.The commissioner shalltrackfollow 90.17 participating studentsand the control groupfor a minimum of 90.18 six years from the start of the program. The commissioner shall 90.19 submit a preliminary report to the governor and the chairs of 90.20 the senate and house committees having jurisdiction over 90.21 education and crime prevention by December 15, 2000, regarding 90.22 continuation of the learn and earn graduation achievement 90.23 program for participating schools and expansion of the program 90.24 to additional schools. The commissioner shall submit a final 90.25 report on this initial project by December 15, 2002. 90.26 Sec. 9. Minnesota Statutes 1997 Supplement, section 90.27 268.665, subdivision 2, is amended to read: 90.28 Subd. 2. [MEMBERSHIP.] The governor's workforce 90.29 development council is composed of 33 members appointed by the 90.30 governor. The members may be removed pursuant to section 90.31 15.059. In selecting the representatives of the council, the 90.32 governor shall ensure that 50 percent of the members come from 90.33 nominations provided by local workforce councils. Local 90.34 education representatives shall come from nominations provided 90.35 by local education to employment partnerships. The3233 90.36 members shall represent the following sectors: 91.1 (a) State agencies: the following individuals shall serve 91.2 on the council: 91.3 (1) commissioner of the Minnesota department of economic 91.4 security; 91.5 (2) commissioner of the Minnesota department of children, 91.6 families, and learning; 91.7 (3) commissioner of the Minnesota department of human 91.8 services; and 91.9 (4) commissioner of the Minnesota department of trade and 91.10 economic development. 91.11 (b) Business and industry: six individuals shall represent 91.12 the business and industry sectors of Minnesota. 91.13 (c) Organized labor: six individuals shall represent labor 91.14 organizations of Minnesota. 91.15 (d) Community-based organizations: four individuals shall 91.16 represent community-based organizations of Minnesota. 91.17 Community-based organizations are defined by the Job Training 91.18 Partnership Act as private nonprofit organizations that are 91.19 representative of communities or significant segments of 91.20 communities and that provide job training services, agencies 91.21 serving youth, agencies serving individuals with disabilities, 91.22 agencies serving displaced homemakers, union-related 91.23 organizations, and employer-related nonprofit organizations and 91.24 organizations serving nonreservation Indians and tribal 91.25 governments. 91.26 (e) Education: six individuals shall represent the 91.27 education sector of Minnesota as follows: 91.28 (1) one individual shall represent local public secondary 91.29 education; 91.30 (2) one individual shall have expertise in design and 91.31 implementation of school-based service-learning; 91.32 (3) one individual shall represent post-secondary 91.33 education; 91.34 (4) one individual shall represent secondary/post-secondary 91.35 vocational institutions; 91.36 (5) the chancellor of the board of trustees of the 92.1 Minnesota state colleges and universities; and 92.2 (6) one individual shall have expertise in agricultural 92.3 education. 92.4 (f) Other: two individuals shall represent other 92.5 constituencies including: 92.6 (1) units of local government; and 92.7 (2) applicable state or local programs. 92.8 The speaker and the minority leader of the house of 92.9 representatives shall each appoint a representative to serve as 92.10 an ex officio member of the council. The majority and minority 92.11 leaders of the senate shall each appoint a senator to serve as 92.12 an ex officio member of the council. After January 1, 1997, the 92.13 Minnesota director of the corporation for national service shall 92.14 also serve as an ex officio member. 92.15 (g) Appointment: each member shall be appointed for a term 92.16 of three years from the first day of January or July immediately 92.17 following their appointment. Elected officials shall forfeit 92.18 their appointment if they cease to serve in elected office. 92.19 (h) Members of the council are compensated as provided in 92.20 section 15.059, subdivision 3. 92.21 Sec. 10. Minnesota Statutes 1996, section 268.665, 92.22 subdivision 3, is amended to read: 92.23 Subd. 3. [PURPOSE; DUTIES.] The governor's workforce 92.24 development council shall replace the governor's job training 92.25 council and assume all of its requirements, duties, and 92.26 responsibilities, under the Job Training Partnership Act, United 92.27 States Code, title 29, section 1501, et seq. Additionally, the 92.28 workforce development council shall assume the following duties 92.29 and responsibilities: 92.30 (a) Coordinate the development, implementation, and 92.31 evaluation of the statewide education and employment transitions 92.32 system under section 126B.01. Beginning January 1, 1997, the 92.33 council shall also coordinate the development, implementation, 92.34 and evaluation of the Minnesota youth services programs under 92.35 sections 121.704 to 121.709, and the National and Community 92.36 Services Act of 1993, United States Code, title 42, section 93.1 12501, et seq. 93.2 (b) Review the provision of services and the use of funds 93.3 and resources under applicable federal human resource programs 93.4 and advise the governor on methods of coordinating the provision 93.5 of services and the use of funds and resources consistent with 93.6 the laws and regulations governing the programs. For purposes 93.7 of this section, applicable federal and state human resource 93.8 programs mean the: 93.9 (1) Job Training Partnership Act, United States Code, title 93.10 29, section 1501, et seq.; 93.11 (2) Carl D. Perkins Vocational and Applied Technology 93.12 Education Act, United States Code, title 20, section 2301, et 93.13 seq.; 93.14 (3) National and Community Service Act of 1993, United 93.15 States Code, title 42, section 12501, et seq.; 93.16 (4) Adult Education Act, United States Code, title 20, 93.17 section 1201, et seq.; 93.18 (5) Wagner-Peyser Act, United States Code, title 29, 93.19 section 49; 93.20 (6) Social Security Act, title IV, part F, (JOBS), United 93.21 States Code, title 42, section 681, et seq.; 93.22 (7) Food Stamp Act of 1977, United States Code, title 7, 93.23 section 6(d)(4), Food Stamp Employment and Training Program, 93.24 United States Code, title 7, section 2015(d)(4); 93.25 (8) programs defined in section 268.0111, subdivisions 4 93.26 and 5; and 93.27 (9) School to Work Opportunity Act of 1994, Public Law 93.28 Number 103-239. 93.29 Additional federal and state programs and resources can be 93.30 included within the scope of the council's duties if recommended 93.31 by the governor after consultation with the council. 93.32 (c) Review federal, state, and local education, 93.33 post-secondary, job skills training, and youth employment 93.34 programs, and make recommendations to the governor and the 93.35 legislature for establishing an integrated seamless system for 93.36 providing education, service-learning, and work skills 94.1 development services to learners and workers of all ages. 94.2 (d) Advise the governor on the development and 94.3 implementation of statewide and local performance standards and 94.4 measures relating to applicable federal human resource programs 94.5 and the coordination of performance standards and measures among 94.6 programs. 94.7 (e) Administer grants to local education and employment 94.8 transition partnerships, including implementation grants under94.9section 126B.01, grants for youth apprenticeship programs under94.10section 126B.03, and youth employer grants. Beginning January94.111, 1997, administer youthworks grants under sections 121.704 to94.12121.709; and 94.13 (1) coordinate implementation of the education and 94.14 employment transitions system under section 126B.01; 94.15 (2) promote education and employment transitions programs 94.16 and knowledge and skills of entrepreneurship among employers, 94.17 workers, youth, and educators, and encourage employers to 94.18 provide meaningful work-based learning opportunities; 94.19 (3) evaluate and identify exemplary education and 94.20 employment transitions programs and provide technical assistance 94.21 to local partnerships to replicate the programs throughout the 94.22 state; 94.23 (4) establish a performance-based quality assurance system 94.24 for consistent statewide evaluation of the performance of the 94.25 education and employment transitions system at both the state 94.26 and local level; 94.27 (5) conduct an annual review of each local education and 94.28 employment transitions partnership to ensure it adequately meets 94.29 the quality assurance standards established as part of the state 94.30 quality assurance system; 94.31 (6) develop the methods to assess local partnership 94.32 effectiveness; 94.33 (7) annually publish a report on the findings of the 94.34 evaluations of each local education transitions partnership; 94.35 (8) promote knowledge and skills of entrepreneurship among 94.36 students in kindergarten through grade 12 by sharing information 95.1 about the ways new business development contributes to a strong 95.2 economy. 95.3 (f) Advise the governor on methods to evaluate applicable 95.4 federal human resource programs. 95.5 (g) Sponsor appropriate studies to identify human 95.6 investment needs in Minnesota and recommend to the governor 95.7 goals and methods for meeting those needs. 95.8 (h) Recommend to the governor goals and methods for the 95.9 development and coordination of a human resource system in 95.10 Minnesota. 95.11 (i) Examine federal and state laws, rules, and regulations 95.12 to assess whether they present barriers to achieving the 95.13 development of a coordinated human resource system. 95.14 (j) Recommend to the governor and to the federal government 95.15 changes in state or federal laws, rules, or regulations 95.16 concerning employment and training programs that present 95.17 barriers to achieving the development of a coordinated human 95.18 resource system. 95.19 (k) Recommend to the governor and to the federal government 95.20 waivers of laws and regulations to promote coordinated service 95.21 delivery. 95.22 (l) Sponsor appropriate studies and prepare and recommend 95.23 to the governor a strategic plan which details methods for 95.24 meeting Minnesota's human investment needs and for developing 95.25 and coordinating a state human resource system. 95.26 (m) Develop program guidelines and recommend grant approval 95.27 procedures to the department of children, families, and learning 95.28 for grants under section 126B.01, grants for youth 95.29 apprenticeship programs under section 126B.03, and youth 95.30 employer grants and youthworks grants under sections 121.704 to 95.31 121.709. 95.32 Sec. 11. Laws 1997, First Special Session chapter 4, 95.33 article 2, section 51, subdivision 33, is amended to read: 95.34 Subd. 33. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 95.35 For the learn and earn graduation achievement program according 95.36 to Minnesota Statutes, section 126.79: 96.1 $1,000,000 ..... 1998 96.2 $1,000,000 ..... 1999 96.3 Any balance in the first year does not cancel but is 96.4 available in the second year. 96.5 This appropriation may be used for administrative and other 96.6 start-up costs for applications from nonprofit agencies. 96.7 However, no more than 25 percent of the appropriation may be 96.8 used for this purpose. 96.9 Sec. 12. Laws 1997, First Special Session chapter 4, 96.10 article 9, section 11, is amended to read: 96.11 Sec. 11. [ADDITIONAL TECHNOLOGY REVENUE.] 96.12 (a) For fiscal year 1998 only, the allowance in Minnesota 96.13 Statutes, section 124A.22, subdivision 10, paragraph (a), is 96.14 increased by: 96.15 (1) $24 per pupil unit; or 96.16 (2) the lesser of $25,000 or $80 per pupil unit. 96.17 Revenue received under this section must be used according 96.18 to Minnesota Statutes, section 124A.22, subdivision 11, clauses 96.19 (15), (18), (19), (23), and (24). 96.20 (b) For the purposes of paragraph (a), "pupil unit" means 96.21 fund balance pupil unit as defined in Minnesota Statutes, 96.22 section 124A.26, subdivision 1, excluding pupil units 96.23 attributable to shared time pupils. 96.24 Sec. 13. Laws 1997, First Special Session chapter 4, 96.25 article 3, section 25, subdivision 4, is amended to read: 96.26 Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 96.27 GRANTS.] For education and employment transitions program: 96.28 $4,750,000 ..... 1998 96.29 $4,750,000 ..... 1999 96.30 $500,000 each year is for development of MnCEPs, an 96.31 Internet-based education and employment information system. 96.32 These are one-time funds. 96.33 $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 96.34 year 1999 is for a rebate program for qualifying employers who 96.35 employ less than 250 employees, who offer youth internships to 96.36 educators. An employer may apply for a rebate of up to $500 for 97.1 each paid youth internship and each educator internship, and up 97.2 to $3,000 for each paid youth apprenticeship. The commissioner 97.3 shall determine the application and payment process. 97.4 $450,000 each year is for youth apprenticeship program 97.5 grants. 97.6 $225,000 each year is for youth entrepreneurship grants 97.7 under Minnesota Statutes, section 121.72. Of this amount, 97.8 $25,000 each year is for the high school student 97.9 entrepreneurship program in independent school district No. 175, 97.10 Westbrook. This appropriation shall be used for expenses, 97.11 including, but not limited to, salaries, travel, seminars, 97.12 equipment purchases, contractual expenses, and other expenses 97.13 related to the student-run business. 97.14 $125,000 each year is for youth employer grants under Laws 97.15 1995, First Special Session chapter 3, article 4, section 28. 97.16 $150,000 each year is for parent and community awareness 97.17 training. 97.18$825,000$775,000 each year is for the development of 97.19 career assessment benchmarks, lifework portfolios, industry 97.20 skill standards, curriculum development, career academies, and 97.21 career programs for elementary, middle school, and at-risk 97.22 learners. 97.23 $400,000 each year is for state level activities, including 97.24 the governor's workforce council. 97.25 $275,000 each year is for development of occupational 97.26 information. 97.27 $300,000 each year is for a grant to be made available to a 97.28 county government that has established school-to-work projects 97.29 with schools located in a city of the first class. These grants 97.30 must be used to expand the number of at-risk students 97.31 participating in these school-to-work projects. Priority must 97.32 be given to projects that demonstrate collaborationbetween97.33 among private and public employers, collective bargaining 97.34 representatives, school officials, and the county government and 97.35 which prepare at-risk students for long-term employment with 97.36 private sector employers paying a minimum of 150 percent of the 98.1 federal poverty level for a family of four and with the majority 98.2 of their employees in collective bargaining units. 98.3 $250,000 each year is for agricultural school-to-work 98.4 grants. 98.5 $25,000 is for a grant to the Minnesota Historical Society 98.6 for money canceled in fiscal year 1997. 98.7 $50,000 each year is awarded to the Minnesota valley action 98.8 council, the fiscal agent for the south central tri-county 98.9 school-to-work partnership, to serve as a model for the state in 98.10 demonstrating the capability of a multicounty partnership to 98.11 develop both a resource map for sustaining all learners and an 98.12 assessment process for employer, labor, and community 98.13 organizations involved in the school-to-work initiative. The 98.14 partnership shall submit a report to the commissioner and to the 98.15 governor's workforce development council by September 1, 1999, 98.16 that includes the resource map, the results of the assessments, 98.17 and models for multicounty partnerships to replicate these 98.18 activities. 98.19 Any balance remaining in the first year does not cancel but 98.20 is available in the second year. 98.21 Sec. 14. Laws 1997, chapter 157, section 71, is amended to 98.22 read: 98.23 Sec. 71. [SCHOOL BANK PILOT PROJECT.] 98.24 (a) A school bank sponsored by independent school district 98.25 No. 31, Bemidji, or by independent school district No. 508, St. 98.26 Peter, that meets all requirements of paragraph (b) is not 98.27 subject to Minnesota Statutes, section 47.03, subdivision 1, or 98.28 to any other statute or rule that regulates banks, other 98.29 financial institutions, or currency exchanges. 98.30 (b) To qualify under paragraph (a), the school bank must: 98.31 (1) be operated as part of a high school educational 98.32 program and under guidelines adopted by the school board; 98.33 (2) be advised on a regular basis byaone or more 98.34 state-chartered or federally-chartered financialinstitution98.35 institutions, but not owned or operated bythatany financial 98.36 institution; 99.1 (3) be located on school premises and have as customers 99.2 only students enrolled in, or employees of, the school in which 99.3 it is located; and 99.4 (4) have a written commitment from the school board, 99.5 guaranteeing reimbursement of any depositor's funds lost due to 99.6 insolvency of the school bank. 99.7 (c) Funds of a school bank that meets the requirements of 99.8 this section are not school district or other public funds for 99.9 purposes of any state law governing the use or investment of 99.10 school district or other public funds. 99.11 (d) The school district shall annually file with the 99.12 commissioner of commerce a report, prepared by the students and 99.13 teachers involved, summarizing the operation of the school bank. 99.14 (e) This section expires June 30, 2000. The commissioner 99.15 of commerce shall, no later than December 15, 1999, provide a 99.16 written report to the legislature regarding this pilot project 99.17 and any recommended legislation regarding school banks. 99.18 Sec. 15. [LIBRARY FOR THE BLIND; APPROPRIATION.] 99.19 $60,000 is appropriated in fiscal year 1999 from the 99.20 general fund to the department of children, families, and 99.21 learning for the purchase and installation of online catalog 99.22 software for the Minnesota library for the blind and physically 99.23 handicapped. 99.24 Sec. 16. [DEADLINE.] 99.25 The governor shall convene the interagency committee 99.26 required by Minnesota Statutes, section 120.1703, subdivision 4, 99.27 by July 1, 1998. 99.28 Sec. 17. [APPROPRIATION; INTERVENTION DEMONSTRATION 99.29 PROJECTS.] 99.30 $250,000 is appropriated from the general fund in fiscal 99.31 year 1999 to the commissioner of children, families, and 99.32 learning for the purpose of establishing five voluntary 99.33 interagency intervention demonstration projects under Minnesota 99.34 Statutes, section 120.1703, subdivision 5. The commissioner 99.35 shall allocate the grant awards according to the implementation 99.36 needs of the grant recipients. 100.1 Sec. 18. [EFFECTIVE DATE.] 100.2 Sections 11, 13, 14, and 16 are effective the day following 100.3 final enactment. 100.4 Section 12 is effective for revenue for fiscal year 1998. 100.5 ARTICLE 4 100.6 FACILITIES AND ORGANIZATION 100.7 Section 1. Minnesota Statutes 1997 Supplement, section 100.8 121.15, subdivision 6, is amended to read: 100.9 Subd. 6. [REVIEW AND COMMENT.] A school district, a 100.10 special education cooperative, or a cooperative unit of 100.11 government, as defined in section 123.35, subdivision 19b, 100.12 paragraph (d), must not initiate an installment contract for 100.13 purchase or a lease agreement, hold a referendum for bonds, nor 100.14 solicit bids for new construction, expansion, or remodeling of 100.15 an educational facility that requires an expenditure in excess 100.16 of $400,000 per school site prior to review and comment by the 100.17 commissioner. Facility maintenance projects funded with general 100.18 education aid and levy or health and safety revenue are exempt 100.19 from this provision unless the commissioner has issued an 100.20 unfavorable or negative review and comment on a proposal to 100.21 remodel or expand the school site. Facility maintenance 100.22 projects include roof replacement, boiler replacement, wiring 100.23 for technology, and other projects designed to replace and 100.24 upgrade components of the building. A school board shall not 100.25 separate portions of a single project into components to avoid 100.26 the requirements of this subdivision. 100.27 Sec. 2. Minnesota Statutes 1996, section 124.239, as 100.28 amended by Laws 1997, chapter 231, article 1, sections 1 to 3, 100.29 and Laws 1997, First Special Session chapter 5, sections 38 to 100.30 41, is amended to read: 100.31 124.239 [ALTERNATIVE FACILITIESBONDING AND LEVYREVENUE 100.32 PROGRAM.] 100.33 Subdivision 1. [TO QUALIFY.] An independent or special 100.34 school district qualifies to participate in the alternative 100.35 facilitiesbonding and levyrevenue program if the district has: 100.36 (1) more than 66 students per grade; 101.1 (2) over 1,850,000 square feet of space; 101.2 (3) average age of building space is2015 years or older; 101.3 (4) insufficient funds from projected health and safety 101.4 revenue and capital facilities revenue to meet the requirements 101.5 for deferred maintenance, to make accessibility improvements, or 101.6 to make fire, safety, or health repairs; and 101.7 (5) a ten-year facility plan approved by the commissioner 101.8 according to subdivision 2. 101.9 Subd. 2. [TEN-YEAR PLAN.] (a) A qualifying district must 101.10 have a ten-year facility plan approved by the commissioner that 101.11 includes an inventory of projects and costs that would be 101.12 eligible for: 101.13 (1) health and safety revenue; 101.14 (2) disabled access levy; and 101.15 (3) deferred capital expenditures and maintenance projects 101.16 necessary to prevent further erosion of facilities. 101.17 (b) The school district must: 101.18 (1) annually update the plan; 101.19 (2) biennially submit a facility maintenance plan; and 101.20 (3) indicate whether the district will issue bonds to 101.21 finance the plan orlevyannually include program revenue under 101.22 the facilities equalization program, under section 124.95, for 101.23 the costs. 101.24 Subd. 3. [BOND AUTHORIZATION.] A school district, upon 101.25 approval of its school board and the commissioner, may issue 101.26 general obligation bonds under this section to finance approved 101.27 facilities plans. Chapter 475, except sections 475.58 and 101.28 475.59, must be complied with.The district may levy under101.29subdivision 5 for the debt service revenue.The authority to 101.30 issue bonds under this section is in addition to any bonding 101.31 authority authorized by this chapter, or other law. The amount 101.32 of bonding authority authorized under this section must be 101.33 disregarded in calculating the bonding or net debt limits of 101.34 this chapter, or any other law other than section 475.53, 101.35 subdivision 4. 101.36 Subd. 4. [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 102.1 district that participates in the alternative facilitiesbonding102.2and levyrevenue program is not eligibleto levy and cannot102.3receive aidfor revenue under sections 124.83 and 124.84 for any 102.4 capital projects funded under this section. A district maylevy102.5and receive aid for health and safetyreceive revenue for 102.6 environmental management costs and health and safety regulatory, 102.7 hazard assessment, record keeping, and maintenance programs as 102.8 defined in section 124.494, subdivision 2, and approved by the 102.9 commissioner. 102.10 Subd. 5. [LEVYREVENUE AUTHORIZED.] A district, after 102.11 local board approval, maylevyreceive revenue for costs related 102.12 to an approved facility plan as follows: 102.13 (a) if the district has indicated to the commissioner that 102.14 bonds will be issued, the district maylevyreceive revenue for 102.15 the principal and interest payments on outstanding bonds issued 102.16 according to subdivision 3 after reduction for any alternative 102.17 facilities aid receivable under subdivision 5a; or 102.18 (b) if the district has indicated to the commissioner that 102.19 the plan will be funded through levy, the district may levy 102.20 according to the schedule approved in the plan. 102.21 Subd. 5a. [ALTERNATIVE FACILITIES AID.] A district's 102.22 alternative facilities aid is the amount equal to the district's 102.23 annual debt service costs, provided that the amount does not 102.24 exceed the amount certified to be levied for those purposes for 102.25 taxes payable in 1997. 102.26 Subd. 5b. [ALTERNATIVE FACILITIES APPROPRIATION.] (a) An 102.27 amount not to exceed $17,000,000 is appropriated from the 102.28 general fund to the commissioner of children, families, and 102.29 learning for fiscal year 2000 and each year thereafter for 102.30 payment of alternative facilities aid under subdivision 5a. The 102.31 2000 appropriation includes $1,700,000 for 1999 and $15,300,000 102.32 for 2000. 102.33 (b) The appropriation in paragraph (a) must be reduced by 102.34 the amount of any money specifically appropriated for the same 102.35 purpose in any year from any state fund. 102.36 Subd. 6. [SEPARATE ACCOUNT.] A district must establish a 103.1 separate account under the uniform financial accounting and 103.2 reporting standards (UFARS) for this program. If the district's 103.3levyrevenue exceeds the necessary interest and principal 103.4 payments and noncapital health and safety costs, the district 103.5 must reserve the revenue to replace future bonding authority, 103.6 prepay bonds authorized under this program, or make payments on 103.7 principal and interest. 103.8 Sec. 3. Minnesota Statutes 1996, section 124.755, 103.9 subdivision 1, is amended to read: 103.10 Subdivision 1. [DEFINITIONS.] For the purposes of this 103.11 section, the term "debt obligation" meanseither: (1) a tax or 103.12 aid anticipation certificate of indebtedness; (2) a certificate 103.13 of participation issued under section 124.91, subdivision 7; or 103.14 (3) a general obligation bond. 103.15 Sec. 4. Minnesota Statutes 1996, section 124.83, 103.16 subdivision 8, is amended to read: 103.17 Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 103.18 COST.] (a) A district's cost for health, safety, and 103.19 environmental management is limited to the lesser of: 103.20 (1) actual cost to implement their plan; or 103.21 (2) an amount determined by the commissioner, based on 103.22 enrollment, building age, and size. 103.23 (b)Effective July 1, 1993,The department of children, 103.24 families, and learning may contract with regional service 103.25 organizations, private contractors, Minnesota safety council, or 103.26 state agencies to provide management assistance to school 103.27 districts for health and safety capital projects. Management 103.28 assistance is the development of written programs for the 103.29 identification, recognition and control of hazards, and 103.30 prioritization and scheduling of district health and safety 103.31 capital projects. 103.32 (c) Notwithstanding paragraph (b), the department may 103.33 approve revenue, up to the limit defined in paragraph (a) for 103.34 districts having an approved health, safety, and environmental 103.35 management plan that uses district staff to accomplish 103.36 coordination and provided services. 104.1 Sec. 5. Minnesota Statutes 1996, section 124.84, 104.2 subdivision 3, is amended to read: 104.3 Subd. 3. [LEVY AUTHORITYREVENUE.] The district maylevy104.4 be eligible for revenue up to $300,000 under this section, as 104.5 approved by the commissioner. The approved amount may belevied104.6 received over eight or fewer years. 104.7 Sec. 6. Minnesota Statutes 1996, section 124.84, 104.8 subdivision 4, is amended to read: 104.9 Subd. 4. [LEVY AUTHORITYREVENUE IN COMBINED DISTRICTS.] 104.10 Notwithstanding subdivision 3, a district that has combined or 104.11 consolidated maylevyreceive revenue up to 50 percent times 104.12 $300,000 times the number of former districts that operated on 104.13 June 30, 1991, in the area that now makes up the combined or 104.14 consolidated district. The approved amount is reduced by any 104.15 amount levied under subdivision 3 in the consolidated or 104.16 combined district or in the former districts that make up the 104.17 consolidated or combined district. Levy authority under this 104.18 subdivision expires at the same time as levy authority under 104.19 subdivision 3. 104.20 Sec. 7. Minnesota Statutes 1997 Supplement, section 104.21 124.91, subdivision 1, is amended to read: 104.22 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When a 104.23 district finds it economically advantageous to rent or lease a 104.24 building or land for any instructional purposes or for school 104.25 storage or furniture repair, and it determines that the 104.26 operating capital revenue authorized under section 124A.22, 104.27 subdivision 10, is insufficient for this purpose, it may apply 104.28 to the commissioner for permissionto make an additional capital104.29expenditure levyto increase its equalized facilities revenue 104.30 under section 124.95, subdivision 4, for this purpose. An 104.31 application for permission tolevy under this subdivision104.32 increase the equalized facilities revenue must contain financial 104.33 justification for the proposedlevyincrease, the terms and 104.34 conditions of the proposed lease, and a description of the space 104.35 to be leased and its proposed use. 104.36 (b) The criteria for approval of applications to levy under 105.1 this subdivision must include: the reasonableness of the price, 105.2 the appropriateness of the space to the proposed activity, the 105.3 feasibility of transporting pupils to the leased building or 105.4 land, conformity of the lease to the laws and rules of the state 105.5 of Minnesota, and the appropriateness of the proposed lease to 105.6 the space needs and the financial condition of the district. 105.7 The commissioner must not authorizea levyrevenue under this 105.8 subdivision in an amount greater than the cost to the district 105.9 of renting or leasing a building or land for approved purposes. 105.10 The proceeds of this levy must not be used for custodial or 105.11 other maintenance services. A district may notlevyreceive 105.12 revenue under this subdivision for the purpose of leasing or 105.13 renting a district-owned building to itself. 105.14 (c) For agreements finalized after July 1, 1997, a district 105.15 may notlevyreceive revenue under this subdivision for the 105.16 purpose of leasing: (1) a newly constructed building used 105.17 primarily for regular kindergarten, elementary, or secondary 105.18 instruction; or (2) a newly constructed building addition or 105.19 additions used primarily for regular kindergarten, elementary, 105.20 or secondary instruction that contains more than 20 percent of 105.21 the square footage of the previously existing building. 105.22 (d) The totallevyrevenue under this subdivision for a 105.23 district for any year must not exceed $100 times the actual 105.24 pupil units for the fiscal year to which the levy is 105.25 attributable. 105.26 Sec. 8. Minnesota Statutes 1996, section 124.91, 105.27 subdivision 2, is amended to read: 105.28 Subd. 2. [PRE-JULY 1990 LEASE PURCHASE, INSTALLMENT BUYS.] 105.29 A district mayannually levyincrease the amount of its 105.30 equalized facilities revenue needed to make payments required by 105.31 a lease purchase agreement, installment purchase agreement, or 105.32 other deferred payment agreement authorized by Minnesota 105.33 Statutes 1989 Supplement, section 465.71, if: 105.34 (1) the agreement was approved by the commissioner before 105.35 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 105.36 section 275.125, subdivision 11d; or 106.1 (2) the district levied in 1989 for the payments. 106.2 Sec. 9. Minnesota Statutes 1996, section 124.91, 106.3 subdivision 4, is amended to read: 106.4 Subd. 4. [COOPERATING DISTRICTS.] A district that has an 106.5 agreement according to section 122.535 or 122.541 maylevy106.6 increase its equalized facilities revenue under section 124.95, 106.7 subdivision 4, for the repair costs, as approved by the 106.8 department of children, families, and learning, of a building 106.9 located in another district that is a party to the agreement. 106.10 Sec. 10. Minnesota Statutes 1997 Supplement, section 106.11 124.91, subdivision 5, is amended to read: 106.12 Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district 106.13 with its central administrative office located within economic 106.14 development region one, two, three, four, five, six, seven, 106.15 eight, nine, and ten may apply to the commissioner of children, 106.16 families, and learning for ITV revenue up to the greater of .5 106.17 percent of the adjusted net tax capacity of the district or 106.18 $25,000. Eligible interactive television expenditures include 106.19 the construction, maintenance, and lease costs of an interactive 106.20 television system for instructional purposes. An eligible 106.21 school district that has completed the construction of its 106.22 interactive television system may also purchase computer 106.23 hardware and software used primarily for instructional purposes 106.24 and access to the Internet provided that its total expenditures 106.25 for interactive television maintenance and lease costs and for 106.26 computer hardware and software under this subdivision do not 106.27 exceed its interactive television revenue for fiscal year 1998. 106.28 The approval by the commissioner of children, families, and 106.29 learning and the application procedures set forth in subdivision 106.30 1 shall apply to the revenue in this subdivision. In granting 106.31 the approval, the commissioner must consider whether the 106.32 district is maximizing efficiency through peak use and off-peak 106.33 use pricing structures. 106.34 (b) To obtain ITV revenue, a district maylevy an amount106.35 increase its equalized facilities revenue under section 124.95, 106.36 subdivision 4, not to exceed the district's ITV revenue times 107.1 the lesser of one or the ratio of: 107.2 (1) the quotient derived by dividing the adjusted net tax 107.3 capacity of the district for the year before the year thelevy107.4 increase in its equalized facilities revenue is certified by the 107.5 actual pupil units in the district for the year to which 107.6 thelevyequalized facilities revenue increase is attributable; 107.7 to 107.8 (2)100 percent of the equalizing factor as defined in107.9section 124A.02, subdivision 8, for the year to which the levy107.10is attributable$10,000. 107.11 (c)A district's ITV aid is the difference between its ITV107.12revenue and the ITV levy.107.13(d)The revenue in the first year after reorganization for 107.14 a district that has reorganized under section 122.22, 122.23, or 107.15 122.241 to 122.247 shall be the greater of: 107.16 (1) the revenue computed for the reorganized district under 107.17 paragraph (a), or 107.18 (2)(i) for two districts that reorganized, 75 percent of 107.19 the revenue computed as if the districts involved in the 107.20 reorganization were separate, or 107.21 (ii) for three or more districts that reorganized, 50 107.22 percent of the revenue computed as if the districts involved in 107.23 the reorganization were separate. 107.24(e)(d) The revenue in paragraph(d)(c) is increased by 107.25 the difference between the initial revenue and ITV lease costs 107.26 for leases that had been entered into by the preexisting 107.27 districts on the effective date of the consolidation or 107.28 combination and with a term not exceeding ten years. This 107.29 increased revenue is only available for the remaining term of 107.30 the lease. However, in no case shall the revenue exceed the 107.31 amount available had the preexisting districts received revenue 107.32 separately. 107.33(f)(e) Effective for fiscal year 2000, the revenue under 107.34 this section shall be 75 percent of the amount determined in 107.35 paragraph (a); for fiscal year 2001, 50 percent of the amount in 107.36 paragraph (a); and for fiscal year 2002, 25 percent of the 108.1 amount in paragraph (a). 108.2(g)(f) This section expires effective for revenue for 108.3 fiscal year 2003, or when leases in existence on the effective 108.4 date of Laws 1997, First Special Session chapter 4, expire. 108.5 Sec. 11. Minnesota Statutes 1996, section 124.91, 108.6 subdivision 6, is amended to read: 108.7 Subd. 6. [ENERGY CONSERVATION.] For loans existing on 108.8 January 1, 1998, the school district may annuallylevyinclude 108.9 as revenue under section 124.95, without the approval of a 108.10 majority of the voters in the district, an amount sufficient to 108.11 repay the annual principal and interest of the loan made 108.12 pursuant to sections 216C.37 and 298.292 to 298.298. For energy 108.13 loans executed after January 1, 1998, school districts must 108.14 annually transfer from the general fund to the debt redemption 108.15 fund the amount sufficient to pay interest and principal on the 108.16 bonds. 108.17 Sec. 12. Minnesota Statutes 1997 Supplement, section 108.18 124.91, subdivision 7, as amended by Laws 1997, Third Special 108.19 Session chapter 3, section 27, is amended to read: 108.20 Subd. 7. [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 108.21 application to, and approval by, the commissioner in accordance 108.22 with the procedures and limits in subdivision 1, paragraphs (a) 108.23 and (b), a district, as defined in this subdivision, may: 108.24 (1) purchase real or personal property under an installment 108.25 contract or may lease real or personal property with an option 108.26 to purchase under a lease purchase agreement, by which 108.27 installment contract or lease purchase agreement title is kept 108.28 by the seller or vendor or assigned to a third party as security 108.29 for the purchase price, including interest, if any; and 108.30 (2) annuallylevyincrease its equalized facilities revenue 108.31 under section 124.95, subdivision 4, by the amounts necessary to 108.32 pay the district's obligations under the installment contract or 108.33 lease purchase agreement. 108.34 (b) The obligation created by the installment contract or 108.35 the lease purchase agreement must not be included in the 108.36 calculation of net debt for purposes of section 475.53, and does 109.1 not constitute debt under other law. An election is not 109.2 required in connection with the execution of the installment 109.3 contract or the lease purchase agreement. 109.4 (c) The proceeds of thelevyequalized facilities revenue 109.5 increase authorized by this subdivision must not be used to 109.6 acquire a facility to be primarily used for athletic or school 109.7 administration purposes. 109.8 (d) For the purposes of this subdivision, "district" means: 109.9 (1) a school district required to have a comprehensive plan 109.10 for the elimination of segregation whose plan has been 109.11 determined by the commissioner to be in compliance with the 109.12 state board of education rules relating to equality of 109.13 educational opportunity and school desegregation; or 109.14 (2) a school district that participates in a joint program 109.15 for interdistrict desegregation with a district defined in 109.16 clause (1) if the facility acquired under this subdivision is to 109.17 be primarily used for the joint program. 109.18 (e) Notwithstanding subdivision 1, the prohibition against 109.19a levy bya districtto leasereceiving revenue for the purpose 109.20 of leasing orrentrenting a district-owned building to itself 109.21 does not apply toleviesrevenues otherwise authorized by this 109.22 subdivision. 109.23 (f) For the purposes of this subdivision, any references in 109.24 subdivision 1 to building or land shall include personal 109.25 property. 109.26 Sec. 13. Minnesota Statutes 1996, section 124.95, as 109.27 amended by Laws 1997, First Special Session chapter 4, article 109.28 4, section 20, is amended to read: 109.29 124.95 [DEBT SERVICEFACILITIES EQUALIZATION PROGRAM.] 109.30 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 109.31 section, the eligibledebt servicefacilities revenue of a 109.32 district is defined as follows: 109.33 (1) the amount needed to produce between five and six 109.34 percent in excess of the amount needed to meet when due the 109.35 principal and interest payments on the obligations of the 109.36 district for eligible projects according to subdivision 2, 110.1 including the amounts necessary for repayment of energy loans 110.2 according to section216C.37 or sections 298.292 to 298.298110.3 124.91, subdivision 6, debt service loans and capital loans, 110.4 lease purchase payments under section 124.91, subdivisions 2 and 110.5 3, alternative facilitiesleviesrevenue under section 124.239, 110.6 subdivision 5, historic building revenue, under section 124.825, 110.7 subdivision 2; health and safety revenue, under section 124.83, 110.8 subdivision 3; handicapped access and fire safety revenue, under 110.9 section 124.84, subdivision 3; building lease revenue, under 110.10 section 124.91, subdivision 1; cooperative building repair 110.11 revenue, under section 124.91, subdivision 4; and interactive 110.12 television revenue, under section 124.91, subdivision 5, minus 110.13 (2) the amount of debt service excess levy reduction for 110.14 that school year calculated according to the procedure 110.15 established by the commissioner. 110.16 (b) The obligations in this paragraph are excluded from 110.17 eligibledebt servicefacilities revenue: 110.18 (1) obligations under section 124.2445; 110.19 (2) the part of debt service principal and interest paid 110.20 from the taconite environmental protection fund or northeast 110.21 Minnesota economic protection trust; 110.22 (3) obligations issued under Laws 1991, chapter 265, 110.23 article 5, section 18, as amended by Laws 1992, chapter 499, 110.24 article 5, section 24; and 110.25 (4) obligations under section 124.2455. 110.26 (c) For purposes of this section, if a preexisting school 110.27 district reorganized under section 122.22, 122.23, or 122.241 to 110.28 122.248 is solely responsible for retirement of the preexisting 110.29 district's bonded indebtedness, capital loans or debt service 110.30 loans,debt servicefacilities equalization aid must be computed 110.31 separately for each of the preexisting school districts. 110.32 Subd. 2. [ELIGIBILITY.] (a) The following portions of a 110.33 district'sdebt service levyfacilities revenue qualify fordebt110.34servicefacilities equalization: 110.35 (1) debt service for repayment of principal and interest on 110.36 bonds issued before July 2, 1992; 111.1 (2) debt service for bonds refinanced after July 1, 1992, 111.2 if the bond schedule has been approved by the commissioner and, 111.3 if necessary, adjusted to reflect a 20-year maturity schedule; 111.4and111.5 (3) debt service for bonds issued after July 1, 1992, for 111.6 construction projects that have received a positive review and 111.7 comment according to section 121.15, if the commissioner has 111.8 determined that the district has met the criteria under section 111.9 124.431, subdivision 2, and if the bond schedule has been 111.10 approved by the commissioner and, if necessary, adjusted to 111.11 reflect a 20-year maturity schedule; 111.12 (4) alternative facilities revenue, according to section 111.13 124.239, subdivision 5; 111.14 (5) historic building revenue, according to section 111.15 124.825, subdivision 2; 111.16 (6) health and safety revenue, according to section 124.83, 111.17 subdivision 3; 111.18 (7) handicapped access and fire safety revenue, according 111.19 to section 124.84, subdivision 3; 111.20 (8) building lease revenue, according to section 124.91, 111.21 subdivision 1, excluding revenue for leases for land or 111.22 facilities for athletic or other extracurricular activities; 111.23 (9) interactive television revenue, according to section 111.24 124.91, subdivision 5; and 111.25 (10) cooperative building repair revenue, according to 111.26 section 124.91, subdivision 4. 111.27 (b) The criterion in section 124.431, subdivision 2, 111.28 paragraph (a), clause (2), shall be considered to have been met 111.29 if the district in the fiscal year in which the bonds are 111.30 authorized at an election conducted under chapter 475: 111.31 (i) if grades 9 through 12 are to be served by the 111.32 facility, and an average of at least 66 pupils per grade in 111.33 these grades are served; or 111.34 (ii) is eligible for elementary or secondary sparsity 111.35 revenue. 111.36 (c) The criterion in section 124.431, subdivision 2, 112.1 paragraph (a), clause (2), shall also be considered to have been 112.2 met if the construction project under review serves students in 112.3 kindergarten to grade 8. Only the debt service levy for that 112.4 portion of the facility serving students in prekindergarten to 112.5 grade 8, as determined by the commissioner, shall be eligible 112.6 for debt service equalization under this paragraph. 112.7 (d) The criterion described in section 124.431, subdivision 112.8 2, paragraph (a), clause (9), does not apply to bonds authorized 112.9 by elections held before July 1, 1992. 112.10 (e) For the purpose of this subdivision the department 112.11 shall determine the eligibility for sparsity at the location of 112.12 the new facility, or the site of the new facility closest to the 112.13 nearest operating school if there is more than one new facility. 112.14 (f) Notwithstanding paragraphs (a) to (e), debt service for 112.15 repayment of principal and interest on bonds issued after July 112.16 1, 1997, does not qualify fordebt servicefacilities 112.17 equalization aid unless the primary purpose of the facility is 112.18 to serve students in kindergarten through grade 12. 112.19 Subd. 2a. [NOTIFICATION.] A district eligible fordebt112.20servicefacilities equalization revenue under subdivision 2 must 112.21 notify the commissioner of the amount of its intendeddebt112.22servicefacilities equalization revenue calculated under 112.23 subdivision 1 for all bonds sold prior to the notification by 112.24 July 1 of the calendar year the levy is certified. 112.25 Subd. 3. [DEBT SERVICEFACILITIES EQUALIZATION REVENUE.] 112.26 (a) For fiscal years 1995 and later, thedebt servicefacilities 112.27 equalization revenue of a district equals the eligibledebt112.28servicefacilities equalization revenue minus the amount raised 112.29 by a levy oftennine percent times the adjusted net tax 112.30 capacity of the district. 112.31(b) For fiscal year 1993, debt service equalization revenue112.32equals one-third of the amount calculated in paragraph (a).112.33(c) For fiscal year 1994, debt service equalization revenue112.34equals two-thirds of the amount calculated in paragraph (a).112.35 Subd. 4. [EQUALIZEDDEBT SERVICEFACILITIES LEVY.] To 112.36 obtaindebt servicefacilities equalization revenue, a district 113.1 must levy an amount not to exceed the district'sdebt service113.2 facilities equalization revenue times the lesser of one or the 113.3 ratio of: 113.4 (1) the quotient derived by dividing the adjusted net tax 113.5 capacity of the district for the year before the year the levy 113.6 is certified by the actual pupil units in the district for the 113.7 school year ending in the year prior to the year the levy is 113.8 certified; to 113.9 (2) $4,707.50. 113.10 Subd. 5. [DEBT SERVICEFACILITIES EQUALIZATION AID.] A 113.11 district'sdebt servicefacilities equalization aid is the 113.12 difference between thedebt servicefacilities equalization 113.13 revenue and the equalizeddebt servicefacilities levy. If the 113.14 amount ofdebt servicefacilities equalization aid actually 113.15 appropriated for the fiscal year in which this calculation is 113.16 made is insufficient to fully funddebt servicefacilities 113.17 equalization aid, the commissioner shall prorate the amount of 113.18 aid across all eligible districts. 113.19 Subd. 6. [DEBT SERVICEFACILITIES EQUALIZATION AID PAYMENT 113.20 SCHEDULE.]Debt serviceFacilities equalization aid must be paid 113.21as follows: 30 percent before September 15, 30 percent before113.22December 15, 25 percent before March 15, and a final payment of113.2315 percent by July 15 of the subsequent fiscal yearaccording to 113.24 section 124.195, subdivision 7. 113.25 Subd. 7. [DEBT SERVICE PRIORITY.] Of the aid paid under 113.26 this section, the state must first allocate the amount 113.27 attributable to obligations under chapter 475. Remaining aid 113.28 may be used for other purposes of this section. 113.29 Subd. 8. [PRORATION.] In the event that the alternative 113.30 facilities aid available for any year is prorated, a district 113.31 having its aid prorated may levy an additional amount equal to 113.32 the amount not paid by the state due to proration. 113.33 Sec. 14. Minnesota Statutes 1997 Supplement, section 113.34 124.961, is amended to read: 113.35 124.961 [DEBT SERVICEFACILITIES APPROPRIATION.] 113.36 (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 114.1 year 1999, and $38,390,000 in fiscal year 2000 and each year 114.2 thereafter is appropriated from the general fund to the 114.3 commissioner of children, families, and learning for payment 114.4 ofdebt servicefacilities equalization aid under section 114.5 124.95. The 2000 appropriation includes $3,842,000 for 1999 and 114.6 $34,548,000 for 2000. 114.7 (b) The appropriations in paragraph (a) must be reduced by 114.8 the amount of any money specifically appropriated for the same 114.9 purpose in any year from any state fund. 114.10 Sec. 15. Minnesota Statutes 1997 Supplement, section 114.11 124A.22, subdivision 11, is amended to read: 114.12 Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 114.13 operating capital revenue may be used only for the following 114.14 purposes: 114.15 (1) to acquire land for school purposes; 114.16 (2) to acquire or construct buildings for school purposes,114.17up to $400,000; 114.18 (3) to rent or lease buildings, including the costs of 114.19 building repair or improvement that are part of a lease 114.20 agreement; 114.21 (4) to improve and repair school sites and buildings, and 114.22 equip or reequip school buildings with permanent attached 114.23 fixtures; 114.24 (5) for a surplus school building that is used 114.25 substantially for a public nonschool purpose; 114.26 (6) to eliminate barriers or increase access to school 114.27 buildings by individuals with a disability; 114.28 (7) to bring school buildings into compliance with the 114.29 uniform fire code adopted according to chapter 299F; 114.30 (8) to remove asbestos from school buildings, encapsulate 114.31 asbestos, or make asbestos-related repairs; 114.32 (9) to clean up and dispose of polychlorinated biphenyls 114.33 found in school buildings; 114.34 (10) to clean up, remove, dispose of, and make repairs 114.35 related to storing heating fuel or transportation fuels such as 114.36 alcohol, gasoline, fuel oil, and special fuel, as defined in 115.1 section 296.01; 115.2 (11) for energy audits for school buildings and to modify 115.3 buildings if the audit indicates the cost of the modification 115.4 can be recovered within ten years; 115.5 (12) to improve buildings that are leased according to 115.6 section 123.36, subdivision 10; 115.7 (13) to pay special assessments levied against school 115.8 property but not to pay assessments for service charges; 115.9 (14) to pay principal and interest on state loans for 115.10 energy conservation according to section 216C.37 or loans made 115.11 under the Northeast Minnesota Economic Protection Trust Fund Act 115.12 according to sections 298.292 to 298.298; 115.13 (15) to purchase or lease interactive telecommunications 115.14 equipment; 115.15 (16) by school board resolution, to transfer money into the 115.16 debt redemption fund to: (i) pay the amounts needed to meet, 115.17 when due, principal and interest payments on certain obligations 115.18 issued according to chapter 475; or (ii) pay principal and 115.19 interest on debt service loans or capital loans according to 115.20 section 124.44; 115.21 (17) to pay capital expenditure equipment-related 115.22 assessments of any entity formed under a cooperative agreement 115.23 between two or more districts; 115.24 (18) to purchase or lease computers and related materials, 115.25 copying machines, telecommunications equipment, and other 115.26 noninstructional equipment; 115.27 (19) to purchase or lease assistive technology or equipment 115.28 for instructional programs; 115.29 (20) to purchase textbooks; 115.30 (21) to purchase new and replacement library books; 115.31 (22) to purchase vehicles; 115.32 (23) to purchase or lease telecommunications equipment, 115.33 computers, and related equipment for integrated information 115.34 management systems for: 115.35 (i) managing and reporting learner outcome information for 115.36 all students under a results-oriented graduation rule; 116.1 (ii) managing student assessment, services, and achievement 116.2 information required for students with individual education 116.3 plans; and 116.4 (iii) other classroom information management needs; and 116.5 (24) to pay personnel costs directly related to the 116.6 acquisition, operation, and maintenance of telecommunications 116.7 systems, computers, related equipment, and network and 116.8 applications software. 116.9 Sec. 16. Laws 1997, First Special Session chapter 4, 116.10 article 4, section 33, is amended to read: 116.11 Sec. 33. [1996-1997 AND 1997-1998 AVERAGE DAILY 116.12 MEMBERSHIP.] 116.13 Notwithstanding Minnesota Statutes, section 124.17, the 116.14 1996-1997 and the 1997-1998 average daily membership for a 116.15 school building closed due to flooding for part of the school 116.16 year and reopened before the end of the school year shall be the 116.17 greater of the amount that would have been computed if the 116.18 school building had not reopened or the amount computed using 116.19 actual data for the entire school year. 116.20 Sec. 17. Laws 1997, First Special Session chapter 4, 116.21 article 4, section 34, is amended to read: 116.22 Sec. 34. [FISCALYEARYEARS 1998 AND 1999 DECLINING PUPIL 116.23 UNIT AID.] 116.24 For fiscalyearyears 1998 and 1999 only, a school district 116.25 with one or more school buildings closed during the 1996-1997 116.26 school year due to flooding is eligible for declining pupil unit 116.27 aid equal to the greater of zero or the product of the general 116.28 education formula allowance for fiscal year 1998 times the 116.29 difference between the district's actual pupil units for the 116.30 1996-1997 school year and the district's actual pupil units for 116.31 the 1997-1998 school year. 116.32 Sec. 18. Laws 1997, First Special Session chapter 4, 116.33 article 4, section 35, subdivision 9, is amended to read: 116.34 Subd. 9. [FLOOD LOSSES.] For grants and loans to 116.35 independent school district Nos. 2854, Ada-Borup; 2176, 116.36 Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 117.1 and other districts affected by the 1997 floods for expenses 117.2 associated with the floods not covered by insurance or state or 117.3 federal disaster relief: 117.4 $4,700,000 ..... 1998 117.5 The commissioner shall award grants and loans to school 117.6 districts to cover expenses associated with the 1997 floods. 117.7 The grants or loans may be for capital losses or for 117.8 extraordinary operating expenses resulting from the floods. 117.9 School districts shall repay any loan or grant amounts to the 117.10 department if those amounts are otherwise funded from other 117.11 sources. The commissioner shall establish the terms and 117.12 conditions of any loans and may request any necessary 117.13 information from school districts before awarding a grant or 117.14 loan. This appropriation shall also be used to fund aid under 117.15 sections 33 and 34. 117.16 This appropriation is available until June 30, 1999. 117.17 Sec. 19. [PHASE-OUT OF DOWN PAYMENT PROGRAM.] 117.18 Districts that have received authority to levy under 117.19 Minnesota Statutes, section 124.82, prior to January 1, 1998, 117.20 may continue to include the amount as revenue under section 117.21 124.95 for the number of years for which the authority was 117.22 originally provided. No other district may qualify under that 117.23 section. The revenue must be maintained in a separate account 117.24 and may only be used for the purpose specified in the ballot. 117.25 Sec. 20. [JOINT FACILITY.] 117.26 Notwithstanding Minnesota Statutes, section 471.19, 117.27 independent school district No. 277, Westonka, may expend bond 117.28 funds for building and remodeling a facility to be operated and 117.29 maintained under a joint-powers agreement with other 117.30 governmental entities for joint use by the school district and 117.31 local community agencies. The school district is not eligible 117.32 for debt service equalization on the bonds associated with the 117.33 joint facility. 117.34 Sec. 21. [USE OF BOND PROCEEDS.] 117.35 Notwithstanding Minnesota Statutes, section 475.58, 117.36 subdivision 4, independent school district No. 742, St. Cloud, 118.1 upon passage of a written resolution specifying the amount and 118.2 purpose of the expenditure, may expend up to $800,000 from its 118.3 building construction fund on a community education site. 118.4 Sec. 22. [BONDING AUTHORIZATION.] 118.5 To provide funds for the acquisition or betterment of 118.6 school facilities, independent school district No. 625, St. 118.7 Paul, may by two-thirds majority vote of all the members of the 118.8 board of directors issue general obligation bonds in one or more 118.9 series in calendar years 1998 to 2002, both inclusive, as 118.10 provided in this section. The aggregate principal amount of any 118.11 bonds issued under this section for each calendar year must not 118.12 exceed $15,000,000. Issuance of the bonds is not subject to 118.13 Minnesota Statutes, section 475.58 or 475.59. The bonds must 118.14 otherwise be issued as provided in Minnesota Statutes, chapter 118.15 475. The authority to issue bonds under this section is in 118.16 addition to any bonding authority authorized by Minnesota 118.17 Statutes, chapter 124, or other law. The amount of bonding 118.18 authority authorized under this section must be disregarded in 118.19 calculating the bonding limit of Minnesota Statutes, chapter 118.20 124, or any other law other than Minnesota Statutes, section 118.21 475.53, subdivision 4. 118.22 Sec. 23. [TAX LEVY FOR DEBT SERVICE.] 118.23 To pay the principal of and interest on bonds issued under 118.24 section 22, independent school district No. 625, St. Paul, must 118.25 levy a tax annually in an amount sufficient under Minnesota 118.26 Statutes, section 475.61, subdivisions 1 and 3, to pay the 118.27 principal of and interest on the bonds. The tax authorized 118.28 under this section is in addition to the taxes authorized to be 118.29 levied under Minnesota Statutes, chapter 124A or 275, or other 118.30 law. 118.31 Sec. 24. [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] 118.32 Notwithstanding Minnesota Statutes, section 124.83, 118.33 subdivision 6, independent school district No. 621, Mounds View, 118.34 is authorized to use up to $300,000 of its health and safety 118.35 revenue to replace portable classrooms over 20 years old with 118.36 new construction of classrooms. 119.1 Sec. 25. [PREVAILING WAGE; APPROPRIATIONS.] 119.2 $1,000,000 is appropriated in fiscal year 1998 from the 119.3 general fund to the department of children, families, and 119.4 learning for grants to school districts for the reimbursement of 119.5 additional construction expenditures incurred as a result of the 119.6 districts complying with Minnesota Statutes, section 121.15, 119.7 subdivision 1a. The grants must be awarded to the following 119.8 districts: 119.9 (1) independent school district No. 23, Frazee-Vergas; 119.10 (2) independent school district No. 62, Ortonville; 119.11 (3) independent school district No. 242, Alden; 119.12 (4) independent school district No. 390, Lake of the Woods; 119.13 (5) independent school district No. 392, Le Center; 119.14 (6) independent school district No. 466, Dassel-Cokato; 119.15 (7) independent school district No. 534, Stewartville; 119.16 (8) independent school district No. 542, Battle Lake; 119.17 (9) independent school district No. 659, Northfield; 119.18 (10) independent school district No. 727, Big Lake; 119.19 (11) independent school district No. 882, Monticello; 119.20 (12) independent school district No. 2135, Maple River; 119.21 (13) independent school district No. 2172, 119.22 Kenyon-Wanamingo; and 119.23 (14) independent school district No. 2184, Luverne. 119.24 Sec. 26. [APPROPRIATION.] 119.25 Subdivision 1. [COMMISSIONER OF CHILDREN, FAMILIES, AND 119.26 LEARNING.] The following sum is appropriated from the general 119.27 fund to the commissioner of children, families, and learning in 119.28 the fiscal year designated. 119.29 Subd. 2. [UNFUNDED FLOOD-RELATED COSTS.] For a 119.30 disbursement grant for costs related to flooding in 1997 not 119.31 covered by federal disaster relief, state match, or insurance 119.32 proceeds: 119.33 $10,075,000 ..... 1998 119.34 Of this amount, $1,400,000 is for special school district No. 1, 119.35 Minneapolis, for Edison high school; $1,250,000 is for 119.36 independent school district No. 2854, Ada-Borup; and $7,425,000 120.1 is for independent school district No. 595, East Grand Forks. 120.2 Part of the appropriation to independent school district No. 120.3 595, East Grand Forks, may be used to convert the Valley 120.4 elementary school into a facility for community, early 120.5 childhood, and senior programs. 120.6 The commissioner shall determine a schedule for payments to 120.7 the school districts. 120.8 This appropriation is available until June 30, 1999. 120.9 Subd. 3. [MONTICELLO.] For a grant to independent school 120.10 district No. 882, Monticello, for losses related to summer 120.11 storms in 1997: 120.12 $100,000 ..... 1998 120.13 This appropriation is available until June 30, 1999. 120.14 Sec. 27. [REPEALER.] 120.15 (a) Minnesota Statutes 1996, sections 124.491; 124.492; 120.16 124.493; 124.494; 124.4945; 124.4946; 124.495; 124.82; 124.83, 120.17 subdivisions 4, 5, and 7; 124C.55; 124C.56; 124C.57; 124C.60, 120.18 subdivision 2; 124C.71; 124C.72; and 124C.73, are repealed. 120.19 (b) Minnesota Statutes 1997 Supplement, sections 124.825, 120.20 subdivisions 3 and 4; and 124C.60, subdivisions 1 and 3, are 120.21 repealed. 120.22 Sec. 28. [EFFECTIVE DATE; LOCAL APPROVAL.] 120.23 (a) Sections 21, 25, and 26 are effective the day following 120.24 final enactment. 120.25 (b) Sections 22 and 23 are effective the day after the 120.26 governing body of independent school district No. 625, St. Paul, 120.27 complies with Minnesota Statutes, section 645.021, subdivision 3. 120.28 ARTICLE 5 120.29 ACADEMIC EXCELLENCE 120.30 Section 1. Minnesota Statutes 1997 Supplement, section 120.31 120.064, subdivision 3, is amended to read: 120.32 Subd. 3. [SPONSOR.] A school board, intermediate school 120.33 district school board, private college, community college, state 120.34 university, technical college, or the University of Minnesota 120.35 may sponsor one or more charter schools. 120.36 Sec. 2. Minnesota Statutes 1996, section 120.064, 121.1 subdivision 9, is amended to read: 121.2 Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may 121.3 limit admission to: 121.4 (1) pupils within an age group or grade level; 121.5 (2) people who are eligible to participate in the 121.6 graduation incentives program under section 126.22; or 121.7 (3) residents of a specific geographic area where the 121.8 percentage of the population of non-Caucasian people of that 121.9 area is greater than the percentage of the non-Caucasian 121.10 population in the congressional district in which the geographic 121.11 area is located, and as long as the school reflects the racial 121.12 and ethnic diversity of the specific area. 121.13 A charter school's enrollment of students eligible for free 121.14 and reduced price meals must equal, at a minimum, the statewide 121.15 average enrollment of students eligible for free and reduced 121.16 price meals. The commissioner shall develop guidelines to 121.17 implement this provision. 121.18 A charter school shall enroll an eligible pupil who submits 121.19 a timely application, unless the number of applications exceeds 121.20 the capacity of a program, class, grade level, or building. In 121.21 this case, pupils shall be accepted by lot. 121.22 A charter school may not limit admission to pupils on the 121.23 basis of intellectual ability, measures of achievement or 121.24 aptitude, or athletic ability. 121.25 Sec. 3. Minnesota Statutes 1996, section 121.1115, is 121.26 amended by adding a subdivision to read: 121.27 Subd. 1b. [EDUCATIONAL ACCOUNTABILITY.] (a) The 121.28 independent office of educational accountability, as authorized 121.29 by Laws 1997, First Special Session chapter 4, article 5, 121.30 section 28, subdivision 2, is established. The office shall 121.31 report to the education committees of the legislature and the 121.32 commissioner of children, families, and learning, at least on a 121.33 biennial basis, on the degree to which the statewide educational 121.34 accountability and reporting system includes a comprehensive 121.35 assessment framework that measures school accountability for 121.36 students achieving the goals described in the state's 122.1 results-oriented graduation rule. The office shall consider 122.2 whether the statewide system of educational accountability 122.3 utilizes multiple indicators to provide valid and reliable 122.4 comparative and contextual data on students, schools, districts, 122.5 and the state, and if not, recommend ways to improve the 122.6 accountability reporting system. 122.7 (b) When the office reviews the statewide educational 122.8 accountability and reporting system, it shall also consider: 122.9 (1) the objectivity and neutrality of the state's 122.10 educational accountability system; and 122.11 (2) the impact of a testing program on school curriculum 122.12 and student learning. 122.13 Sec. 4. [123.3517] [STUDENT ACHIEVEMENT LEVELS.] 122.14 Subdivision 1. [STATE EXPECTATIONS; PLAN.] (a) Each school 122.15 year, a school board must determine if the student achievement 122.16 levels in any school in its district fails to meet state 122.17 expectations. If a school's student achievement levels fail to 122.18 meet state expectations for two out of three consecutive school 122.19 years, beginning with the 1998-1999 school year, the board must 122.20 work with the school to adopt a plan to raise student 122.21 achievement levels to state expectations. State expectations 122.22 will be determined by the legislature based on the 122.23 recommendation of the commissioner of children, families, and 122.24 learning in collaboration with the office of educational 122.25 accountability. 122.26 (b) At the request of a board, the department must assist 122.27 the board and school in developing a plan to improve student 122.28 achievement. 122.29 Subd. 2. [NOTICE.] (a) The board must, within 45 days 122.30 after the board declares that a school's student achievement 122.31 levels fail to meet state expectations under subdivision 1, 122.32 paragraph (a), give notice of the failure to parents and 122.33 guardians of students attending the school. The notice must 122.34 include: 122.35 (1) the state expectations that student achievement levels 122.36 failed to meet; 123.1 (2) a plan, if any, proposed or adopted under subdivision 123.2 1; and 123.3 (3) alternative enrollment options for the students and for 123.4 each option, school expectations for parent involvement as it 123.5 relates to student achievement. 123.6 (b) Each school year the board continues to declare that a 123.7 school's student achievement levels fail to meet state 123.8 expectations, the board must give notice to parents and 123.9 guardians of students of the continuing status of the school. 123.10 Sec. 5. Minnesota Statutes 1996, section 124A.29, 123.11 subdivision 1, is amended to read: 123.12 Subdivision 1. [STAFF DEVELOPMENTAND PARENTAL INVOLVEMENT123.13 REVENUE.] A district isencouragedrequired to reserve at least 123.14 three percent for fiscal year 1999, four percent for fiscal year 123.15 2000, and five percent for fiscal year 2001 and thereafter, of 123.16 its general education revenue for in-service education for 123.17 programs under section 126.77, subdivision 2, for staff 123.18 development plans, including plans for challenging instructional 123.19 activities and experiences under section 126.70, and for 123.20 curriculum development and programs, other in-service education, 123.21 teachers' workshops, teacher conferences, the cost of substitute 123.22 teachers staff development purposes, and other related costs for 123.23 staff development efforts. Districts may expend an additional 123.24 amount of basic revenue for staff development based on their 123.25 needs. The school board shall initially allocate 50 percent of 123.26 the revenue to each school site in the district on a per teacher 123.27 basis, which shall be retained by the school site until used. 123.28 The board may retain 25 percent to be used for district wide 123.29 staff development efforts. The remaining 25 percent of the 123.30 revenue shall be used to make grants to school sites that 123.31 demonstrate exemplary use of allocated staff development 123.32 revenue. A grant may be used for any purpose authorized under 123.33 section 126.70, 126.77, subdivision 2, or for the costs of 123.34 curriculum development and programs, other in-service education, 123.35 teachers' workshops, teacher conferences, substitute teachers 123.36 for staff development purposes, and other staff development 124.1 efforts, and determined by the site decision-making team. The 124.2 site decision-making team must demonstrate to the school board 124.3 the extent to which staff at the site have met the outcomes of 124.4 the program. The board may withhold a portion of initial 124.5 allocation of revenue if the staff development outcomes are not 124.6 being met. 124.7 Sec. 6. Minnesota Statutes 1996, section 125.183, 124.8 subdivision 1, is amended to read: 124.9 Subdivision 1. The board of teaching consists of 11 124.10 members appointed by the governor, with the advice and consent 124.11 of the senate. Membership terms, compensation of members, 124.12 removal of members, the filling of membership vacancies, and 124.13 fiscal year and reporting requirements shall be as provided in 124.14 sections 214.07 to 214.09. No member may be reappointed for 124.15 more than one additional term. 124.16 Sec. 7. Minnesota Statutes 1996, section 125.183, 124.17 subdivision 3, is amended to read: 124.18 Subd. 3. [MEMBERSHIP.] Except for the representatives of 124.19 higher education and the public, to be eligible for appointment 124.20 to the board of teaching a person must be a teacher currently 124.21 teaching in a Minnesota school and fully licensed for the 124.22 position held and have at least five years teaching experience 124.23 in Minnesota, including the two years immediately preceding 124.24 nomination and appointment. Each nominee, other than a public 124.25 nominee, must be selected on the basis of professional 124.26 experience and knowledge of teacher education, accreditation, 124.27 and licensure. The board must be composed of: 124.28 (1) sixclassroomteachers who are currently teaching in a 124.29 Minnesota school, at least four of whom must be teaching in a 124.30 public school; 124.31 (2) one higher education representative, who must be a 124.32 faculty member preparing teachers; 124.33 (3) one school administrator; and 124.34 (4) three members of the public, two of whom must be 124.35 present or former members of school boards. 124.36 Sec. 8. Minnesota Statutes 1996, section 126.70, 125.1 subdivision 2a, is amended to read: 125.2 Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.] The staff 125.3 development committee shall adopt a staff development plan for 125.4 improving student achievement of education outcomes. The plan 125.5 must be consistent with education outcomes that the school board 125.6 determines. The plan shall include ongoing staff development 125.7 activities that contribute toward continuous improvement in 125.8 achievement of the following goals: 125.9 (1) improve student achievement of state and local 125.10 education standards in all areas of the curriculum by using best 125.11 practices methods; 125.12 (2) effectively meet the needs of a diverse student 125.13 population, including at-risk children, children with 125.14 disabilities, and gifted children, within the regular classroom 125.15 and other settings; 125.16 (3) provide an inclusive curriculum for a racially, 125.17 ethnically, and culturally diverse student population that is 125.18 consistent with the state education diversity rule and the 125.19 district's education diversity plan; 125.20 (4) improve staff ability to collaborate and consult with 125.21 one another and to resolve conflicts; 125.22 (5) effectively teach and model violence prevention policy 125.23 and curriculum that address issues of harassment and teach 125.24 nonviolent alternatives for conflict resolution; and 125.25 (6) provide teachers and other members of site-based 125.26 management teams with appropriate management and financial 125.27 management skills. 125.28 Sec. 9. Laws 1997, First Special Session chapter 4, 125.29 article 5, section 28, subdivision 9, is amended to read: 125.30 Subd. 9. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 125.31 grants to collaborative urban educator programs that prepare and 125.32 license people of color to teach: 125.33 $895,000 ..... 1998 125.34 $500,000 ..... 1999 125.35 This appropriation is available until June 30, 1999. 125.36 Sec. 10. Laws 1997, First Special Session chapter 4, 126.1 article 5, section 28, subdivision 10, is amended to read: 126.2 Subd. 10. [CHARTER SCHOOL BUILDING LEASE AID.] For 126.3 building lease aid according to section 124.248, subdivision 2a: 126.4$1,078,000$1,294,000 ..... 1998 126.5$1,577,000$1,889,000 ..... 1999 126.6 The 1999 appropriation includes$120,000$143,000 for 1998 126.7 and$1,457,000$1,746,000 for 1999. 126.8 This appropriation is contingent upon the commissioner of 126.9 children, families, and learning entering a contract with an 126.10 independent facilitator to attempt mediation of the education 126.11 adequacy lawsuits. 126.12 Sec. 11. Laws 1997, First Special Session chapter 4, 126.13 article 5, section 28, subdivision 11, is amended to read: 126.14 Subd. 11. [CHARTER SCHOOL START-UP GRANTS.] For charter 126.15 school start-up cost aid under Minnesota Statutes, section 126.16 124.248: 126.17$500,000$900,000 ..... 1998 126.18 $1,000,000 ..... 1999 126.19 The 1999 appropriation includes $100,000 for 1998 and 126.20 $900,000 for 1999. 126.21 This appropriation is contingent upon the commissioner of 126.22 children, families, and learning entering a contract with an 126.23 independent facilitator to attempt mediation of the education 126.24 adequacy lawsuits. 126.25 Any balance in the first year does not cancel but is 126.26 available in the second year. This appropriation may also be 126.27 used for grants to convert existing schools into charter schools. 126.28 Sec. 12. Laws 1997, First Special Session chapter 4, 126.29 article 5, section 28, subdivision 12, is amended to read: 126.30 Subd. 12. [GRADUATION RULE IMPLEMENTATION AT THE SITE 126.31 AID.] For graduation rule implementation: 126.32 $10,000,000 ..... 1998 126.33 $14,400,000 ..... 1999 126.34 (a) This appropriation shall be paid to districts according 126.35 to paragraph (b). The purpose of the aid is to accelerate the 126.36 implementation of the graduation rule throughout all education 127.1 sites in the district through intensive staff development and 127.2 decentralized decision making. The board shall work with the 127.3 teaching staff in the district to determine the most effective 127.4 staff development processes to assure an acceleration of the 127.5 implementation. This appropriation is one-time only. 127.6 (b) A district shall receive aid equal to $10 for fiscal 127.7 year 1998 and $15 for fiscal year 1999 times the number of fund 127.8 balance pupil units in the district for fiscal year 127.9 1998 excluding pupil units attributable to shared time pupils. 127.10 At least 30 percent in fiscal year 1998 and 100 percent in 127.11 fiscal year 1999 must be used for the purposes of paragraph (a). 127.12 Sec. 13. Laws 1997, First Special Session chapter 4, 127.13 article 6, section 20, subdivision 4, is amended to read: 127.14 Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 127.15 school lunch aid according to Minnesota Statutes, section 127.16 124.646, and Code of Federal Regulations, title 7, section 127.17 210.17, and for food storage and transportation costs for United 127.18 States Department of Agriculture donated commodities; and for a 127.19 temporary transfer to the commodity processing revolving fund to 127.20 provide cash flow to permit schools and other recipients of 127.21 donated commodities to take advantage of volume processing rates 127.22 and for school milk aid according to Minnesota Statutes, section 127.23 124.648: 127.24 $7,254,000 ..... 1998 127.25$7,254,000$7,489,000 ..... 1999 127.26 (b) Any unexpended balance remaining from the 127.27 appropriations in this subdivision shall be prorated among 127.28 participating schools based on the number of free, reduced, and 127.29 fully paid federally reimbursable student lunches served during 127.30 that school year. 127.31 (c) If the appropriation amount attributable to either year 127.32 is insufficient, the rate of payment for each fully paid student 127.33 lunch shall be reduced and the aid for that year shall be 127.34 prorated among participating schools so as not to exceed the 127.35 total authorized appropriation for that year. 127.36 (d) Any temporary transfer processed in accordance with 128.1 this subdivision to the commodity processing fund will be 128.2 returned by June 30 in each year so that school lunch aid and 128.3 food storage costs can be fully paid as scheduled. 128.4 (e) Not more than $800,000 of the amount appropriated each 128.5 year may be used for school milk aid. 128.6 (f) The commissioner may reduce other future aid and grant 128.7 payments due to school districts and other organizations for the 128.8 costs of processing and storage of commodities used by the 128.9 district or organization. 128.10 Sec. 14. [GRADUATION RULE RESOURCE GRANTS.] 128.11 The commissioner of children, families, and learning shall 128.12 award grants to develop learning resources for the state's 128.13 results-oriented graduation rule. The grants are available to: 128.14 (1) provide staff development for implementation of the 128.15 graduation standards, including training in economics, the arts, 128.16 and training in technology by community members; 128.17 (2) establish and equip learning resource centers; 128.18 (3) develop and sustain historical educational programming; 128.19 (4) make historical collections available via the Internet; 128.20 (5) develop a system of graduation rule implementation for 128.21 alternative programs; 128.22 (6) develop systemic site decision-making models and 128.23 implementing site decision making in schools; 128.24 (7) expand attention and reading readiness programs; and 128.25 (8) provide for reporting systems. 128.26 The commissioner may require a match of private funds as 128.27 part of the application process. The commissioner shall 128.28 consider proposals from New Visions school, the Minnesota 128.29 Council on Economic Education, the Minnesota historical society, 128.30 the Lola and Rudy Perpich Center for the Arts, Murphy's Landing, 128.31 Ironworld, parent or community technology specialists working or 128.32 volunteering in schools, and higher education institutions 128.33 working in conjunction with a school district or consortium of 128.34 school districts. 128.35 Sec. 15. [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] 128.36 (a) The department of children, families, and learning 129.1 shall contract for a clearinghouse of best educational practices 129.2 and shared decision-making for improving student performance, 129.3 particularly for at-risk students. The clearinghouse must: 129.4 (1) align with all current activities for best educational 129.5 practice, shared decision-making, and the results-oriented 129.6 graduation rule; 129.7 (2) conduct research and collect information on the best 129.8 educational practices affecting a school's management, 129.9 operation, financing, personnel and instruction; 129.10 (3) train quality intervention teams composed of highly 129.11 qualified educators to assist a school's staff in working to 129.12 improve student performance, particularly for at-risk students, 129.13 by addressing a school's management, operation, financing, 129.14 personnel and instruction practices; 129.15 (4) develop and make available to interested school 129.16 districts a model for an independent educational audit that 129.17 evaluates a school's performance strengths and weakness and 129.18 makes specific recommendations for reinforcing performance 129.19 strengths and improving performance weaknesses cited in the 129.20 audit; 129.21 (5) using the comprehensive assessment framework under 129.22 section 121.1115, subdivision 1b, paragraph (a), develop student 129.23 and school performance indicators schools may use to reliably 129.24 measure school improvement over time; and 129.25 (6) provide staff development opportunities to assist 129.26 teachers and other educators in integrating educational reform 129.27 measures into a school's best practices. 129.28 (b) The clearinghouse must assist school districts, at 129.29 district request, and recommend methods to engage parents and 129.30 communities in improving student performance, particularly for 129.31 at-risk students. 129.32 (c) The clearinghouse must collaborate with community 129.33 stakeholders, including the urban league, the urban coalition, 129.34 the council on Asian-Pacific Minnesotans, the Chicano/Latino 129.35 affairs council, the council on Black Minnesotans, the Indian 129.36 affairs council, and the communities and color institute and 130.1 Minneapolis pathways at the University of Minnesota's Roy 130.2 Wilkins center. 130.3 Sec. 16. [REPORT.] 130.4 The commissioner of children, families, and learning, in 130.5 consultation with the Minnesota state colleges and universities, 130.6 the University of Minnesota, and the private college council, 130.7 shall examine the training of teachers entering the workforce in 130.8 Minnesota. The commissioner shall also consult with the 130.9 Minnesota federation of teachers and the Minnesota education 130.10 association for this report. The report shall make 130.11 recommendations for proposed legislative action to promote a 130.12 more direct connection between teacher training and student 130.13 learning needs under the state's results-oriented graduation 130.14 rule. The commissioner shall seek assistance from the state 130.15 public policy unit within the Humphrey Institute of Minnesota 130.16 for existing research in this area for this report. The 130.17 commissioner shall report its findings to education committees 130.18 of the legislature by December 1, 1998. The report shall 130.19 examine at least the following areas: 130.20 (1) whether teachers entering the workforce are prepared to 130.21 meet the basic skills needs and higher learning needs of 130.22 students under the state's results-oriented graduation rule; 130.23 (2) identify teacher skills which are considered crucial to 130.24 the success of students in a knowledge-based economy and 130.25 determine if Minnesota colleges and universities are teaching 130.26 those skills adequately to teachers; 130.27 (3) examine the ability of Minnesota colleges and 130.28 universities to provide training to existing teachers who are 130.29 seeking further staff development experiences in order to meet 130.30 the students' needs under the graduation rule; and 130.31 (4) identify resources and organizations outside of the 130.32 colleges and universities that can provide training and teaching 130.33 experiences necessary to meet the needs of students under the 130.34 graduation rule. 130.35 Sec. 17. [GANG PREVENTION AND INTERVENTION PROGRAM.] 130.36 Subdivision 1. [GANG PREVENTION AND INTERVENTION.] The 131.1 commissioner of children, families, and learning shall develop 131.2 and administer a gang prevention and intervention program to 131.3 provide services (1) to young people who are at risk for 131.4 criminal gang involvement; and (2) to young people who are 131.5 interested in terminating their gang affiliation. 131.6 Subd. 2. [GRANT APPLICATION.] The department of children, 131.7 families, and learning, in consultation with the department of 131.8 public safety, department of corrections, office of drug policy 131.9 and violence prevention, the criminal gang strike force, one or 131.10 more representatives of community-based programs that have 131.11 conducted research on street gang culture, and one or more 131.12 individuals having direct experience in gang life, shall develop 131.13 a grant application that specifies the eligibility criteria for 131.14 receiving grants. A committee selected by this group also must 131.15 evaluate applications for grants received by the commissioner of 131.16 children, families, and learning and make recommendations to the 131.17 commissioner of children, families, and learning on the awarding 131.18 of grants. 131.19 Subd. 3. [ELIGIBILITY FOR GRANTS.] A local organization 131.20 must meet the following criteria to be eligible for a grant 131.21 under the program: 131.22 (1) it must be a private, nonprofit organization or local 131.23 public agency; and 131.24 (2) it must offer and provide services to young people to 131.25 prevent gang involvement or to intervene in and end gang 131.26 involvement, including, but not limited to, after-school 131.27 activities, educational opportunities, job skill development, 131.28 community service, life skills, medical services, social 131.29 services, and counseling. 131.30 Subd. 4. [ELIGIBILITY FOR SERVICES.] A person who is 131.31 eligible for services must be at least seven years old and not 131.32 more than 25 years old, at the time the person first receives 131.33 services, unless the organization receiving a grant receives 131.34 advance approval from the commissioner of children, families, 131.35 and learning to provide services outside of this age range. 131.36 Subd. 5. [REPORT TO LEGISLATURE.] By December 1, 1998, the 132.1 commissioner of children, families, and learning shall submit a 132.2 report to the chairs of the education committees of the 132.3 legislature on the grants issued under this section. 132.4 Sec. 18. [RESIDENTIAL ACADEMIES PROGRAM.] 132.5 (a) The commissioner of children, families, and learning 132.6 may award grants to public or private organizations or a 132.7 collaboration of organizations for start-up costs for 132.8 residential academies for students in grades 7 through 12 who 132.9 express a desire to attend a residential academy, have 132.10 demonstrated an interest in academic achievement and a 132.11 likelihood of academic success, and who: 132.12 (1) perform or are at risk of performing below the academic 132.13 performance level for pupils of the same age; 132.14 (2) are at least one year behind in satisfactorily 132.15 completing coursework or obtaining credits for graduation; or 132.16 (3) have experienced homelessness or an unstable home 132.17 environment. 132.18 (b) The residential academy must provide a secondary 132.19 education program for the resident students to: 132.20 (1) increase school attendance; 132.21 (2) increase academic achievement; 132.22 (3) enable the students to earn a high school diploma; and 132.23 (4) improve transition to post-secondary education. 132.24 The academy may collaborate with a school district or 132.25 charter school to provide the secondary education program. 132.26 (c) The commissioner of children, families, and learning 132.27 shall prescribe the form and manner of applications. The 132.28 commissioner shall consider the academy's location, 132.29 collaborative effort among various organizations, family and 132.30 community involvement, provision of social services, 132.31 after-school enrichment, and provision of instruction throughout 132.32 the entire year in awarding grants. The commissioner shall 132.33 evaluate the residential academies' program and report to the 132.34 education committees of the legislature by December 1, 2000. 132.35 Sec. 19. [BOARD OF TEACHING.] 132.36 The board of teaching must convene a working group to 133.1 recommend changes that would make employment data on licensed 133.2 education personnel more accessible to school districts. The 133.3 working group must consist of one representative from each of 133.4 the following agencies and organizations: the state board of 133.5 teaching, the state board of education, the department of 133.6 children, families, and learning, the department of 133.7 administration, the Minnesota education association, the 133.8 Minnesota federation of teachers, the Minnesota association of 133.9 school administrators, the Minnesota association of school 133.10 personnel administrators, the Minnesota school boards 133.11 association, and any other representatives that the board 133.12 determines are relevant. Expenses incurred by working group 133.13 members must be reimbursed by the agencies and organizations 133.14 they represent. By December 1, 1998, the board of teaching must 133.15 submit the working group's recommendations to the chairs of the 133.16 kindergarten through grade 12 education funding committees of 133.17 the legislature. 133.18 The working group must address at least the following: 133.19 (1) to what extent a central database of employment history 133.20 of licensed education personnel would be useful and how would it 133.21 operate; 133.22 (2) to what extend information regarding complaints against 133.23 licensed education personnel received by the board of teaching 133.24 or the board of education should be made available to school 133.25 districts; 133.26 (3) to what extent disciplinary actions by the board of 133.27 teaching or the board of education should be made available to 133.28 school districts; and 133.29 (4) to what extent guidelines regarding factors to consider 133.30 in hiring educational personnel would be useful to school 133.31 districts, and, if so, what the guidelines might include. 133.32 Sec. 20. [APPROPRIATIONS.] 133.33 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 133.34 LEARNING.] The sums indicated in this section are appropriated 133.35 from the general fund to the department of children, families, 133.36 and learning for the fiscal years designated. 134.1 Subd. 2. [CLEARINGHOUSE OF BEST EDUCATIONAL 134.2 PRACTICES.] For a clearinghouse of best educational practices. 134.3 $1,979,000 ..... 1999 134.4 Subd. 3. [GRADUATION RULE RESOURCE GRANTS.] For graduation 134.5 rule resource grants. 134.6 $3,300,000 ..... 1999 134.7 This is a one-time appropriation. 134.8 Subd. 4. [GANG PREVENTION AND INTERVENTION.] To develop 134.9 and administer the gang prevention and intervention program. 134.10 $50,000 ..... 1999 134.11 This appropriation is available until June 30, 1999. 134.12 Sec. 21. [EFFECTIVE DATE.] 134.13 Sections 5, 10, and 11 are effective the day following 134.14 final enactment. Section 12 is effective for fiscal year 1998. 134.15 ARTICLE 6 134.16 EDUCATION POLICY 134.17 Section 1. Minnesota Statutes 1996, section 15.014, 134.18 subdivision 3, is amended to read: 134.19 Subd. 3. [TASK FORCE FOR CURRICULUM DEVELOPMENT PURPOSES.] 134.20 In addition to the task forces for which compensation of members 134.21 is authorized in subdivision 2, thestate board of134.22educationcommissioner of children, families, and learning may 134.23 createnot to exceedno more than ten task forces, to be 134.24 compensated as provided in section 15.059, subdivision 6. A 134.25 task force created pursuant to this subdivision shall be for 134.26 curriculum development purposes only and shall expire within one 134.27 year after its creation. The task force shall report to 134.28 thestate boardcommissioner before its expiration or upon the 134.29 completion of its task, whichever occurs first. 134.30 Sec. 2. Minnesota Statutes 1997 Supplement, section 134.31 16B.465, subdivision 4, is amended to read: 134.32 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 134.33 require the participation of state agencies, the state board of134.34education,and the board of trustees of the Minnesota state 134.35 colleges and universities and may request the participation of 134.36 the board of regents of the University of Minnesota, in the 135.1 planning and implementation of the network to provide 135.2 interconnective technologies. The commissioner shall establish 135.3 reimbursement rates in cooperation with the commissioner of 135.4 finance to be billed to participating agencies and educational 135.5 institutions sufficient to cover the operating, maintenance, and 135.6 administrative costs of the system. 135.7 (b) A direct appropriation made to an educational 135.8 institution for usage costs associated with MNet must only be 135.9 used by the educational institution for payment of usage costs 135.10 of the network as billed by the commissioner of administration. 135.11 Sec. 3. Minnesota Statutes 1996, section 119B.20, 135.12 subdivision 5, is amended to read: 135.13 Subd. 5. [CHILD CARE WORKER.] "Child care worker" means a 135.14 person who cares for children for compensation, including a 135.15 licensed provider of child care services, an employee of a 135.16 provider, a person who has applied for a license as a provider, 135.17 or a person who meets the standards established by thestate135.18board of educationcommissioner of children, families, and 135.19 learning. 135.20 Sec. 4. Minnesota Statutes 1996, section 119B.20, 135.21 subdivision 8, is amended to read: 135.22 Subd. 8. [INTERIM FINANCING.] "Interim financing" means 135.23 funds to carry out such activities as are necessary for family 135.24 day care homes, group family day care homes, and child care 135.25 centers to receive and maintain state licensing, to expand an 135.26 existing program or to improve program quality, and to provide 135.27 operating funds for a period of six consecutive months after a 135.28 family day care home, group family day care home, or child care 135.29 center becomes licensed or satisfies standards of thestate135.30board of educationcommissioner of children, families, and 135.31 learning. Interim financing may not exceed a period of 18 135.32 months. 135.33 Sec. 5. Minnesota Statutes 1996, section 119B.20, 135.34 subdivision 12, is amended to read: 135.35 Subd. 12. [TRAINING PROGRAM.] "Training program" means 135.36 child development courses offered by an accredited 136.1 post-secondary institution or similar training approved by a 136.2 county board or the department of children, families, and 136.3 learning. To qualify as a training program under this section, 136.4 a course of study must teach specific skills that meet licensing 136.5 requirements or requirements of thestate board of136.6educationcommissioner of children, families, and learning. 136.7 Sec. 6. Minnesota Statutes 1996, section 120.03, 136.8 subdivision 1, is amended to read: 136.9 Subdivision 1. Every child who has a hearing impairment, 136.10 visual disability, speech or language impairment, physical 136.11 handicap, other health impairment, mental handicap, 136.12 emotional/behavioral disorder, specific learning disability, or 136.13 deaf/blind disability and needs special instruction and 136.14 services, as determined by the standards of thestate136.15boardcommissioner, is a child with a disability. In addition, 136.16 every child under age five who needs special instruction and 136.17 services, as determined by the standards of thestate board136.18 commissioner, because the child has a substantial delay or has 136.19 an identifiable physical or mental condition known to hinder 136.20 normal development is a child with a disability. 136.21 Sec. 7. Minnesota Statutes 1996, section 120.03, 136.22 subdivision 5, is amended to read: 136.23 Subd. 5. A child with a short-term or temporary physical 136.24 or emotional illness or disability, as determined by the 136.25 standards of thestate boardcommissioner, is not a child with a 136.26 disability. 136.27 Sec. 8. Minnesota Statutes 1997 Supplement, section 136.28 120.05, subdivision 2, is amended to read: 136.29 Subd. 2. [DEFINITIONS.] (1) Elementary school means any 136.30 school with building, equipment, courses of study, class 136.31 schedules, enrollment of pupils ordinarily in prekindergarten 136.32 through grade 6 or any portion thereof and staff meeting the 136.33 standards established by thestate board of education136.34 commissioner of children, families, and learning. 136.35 Thestate board of educationcommissioner of children, 136.36 families, and learning shall not close a school or deny any 137.1 state aids to a district for its elementary schools because of 137.2 enrollment limitations classified in accordance with the 137.3 provisions of clause (1). 137.4 (2) Middle school means any school other than a secondary 137.5 school giving an approved course of study in a minimum of three 137.6 consecutive grades above 4th but below 10th with building, 137.7 equipment, courses of study, class schedules, enrollment, and 137.8 staff meeting the standards established by thestate board of137.9educationcommissioner of children, families, and learning. 137.10 (3) Secondary school means any school with building, 137.11 equipment, courses of study, class schedules, enrollment of 137.12 pupils ordinarily in grades 7 through 12 or any portion thereof, 137.13 and staff meeting the standards established by thestate board137.14of educationcommissioner of children, families, and learning. 137.15 (4) A vocational center school is one serving a group of 137.16 secondary schools with approved areas of secondary vocational 137.17 training and offering vocational secondary and adult programs 137.18 necessary to meet local needs and meeting standards established 137.19 by thestate board of educationcommissioner of children, 137.20 families, and learning. 137.21 Sec. 9. Minnesota Statutes 1996, section 120.062, 137.22 subdivision 5, is amended to read: 137.23 Subd. 5. [DESEGREGATION DISTRICT TRANSFERS.] (a) This 137.24 subdivision applies to a transfer into or out of a district that 137.25 has a desegregation plan approved by the commissioner of 137.26 children, families, and learning. 137.27 (b) An application to transfer may be submitted at any time 137.28 for enrollment beginning at any time. 137.29 (c) The parent or guardian of a pupil who is a resident of 137.30 a district that has a desegregation plan must submit an 137.31 application to the resident district. If the district accepts 137.32 the application, it must forward the application to the 137.33 nonresident district. 137.34 (d) The parent or guardian of a pupil who applies for 137.35 enrollment in a nonresident district that has a desegregation 137.36 plan must submit an application to the nonresident district. 138.1 (e) Each district must accept or reject an application it 138.2 receives and notify the parent or guardian in writing within 30 138.3 calendar days of receiving the application. A notification of 138.4 acceptance must include the date enrollment can begin. 138.5 (f) If an application is rejected, the district must state 138.6 the reason for rejection in the notification. If a district 138.7 that has a desegregation plan rejects an application for a 138.8 reason related to the desegregation plan, the district must 138.9 state with specificity how acceptance of the application would 138.10 result in noncompliance withstate boarddepartment rules with 138.11 respect to the school or program for which application was made. 138.12 (g) If an application is accepted, the parent or guardian 138.13 must notify the nonresident district in writing within 15 138.14 calendar days of receiving the acceptance whether the pupil 138.15 intends to enroll in the nonresident district. Notice of 138.16 intention to enroll obligates the pupil to enroll in the 138.17 nonresident district, unless the school boards of the resident 138.18 and nonresident districts agree otherwise. If a parent or 138.19 guardian does not notify the nonresident district, the pupil may 138.20 not enroll in that nonresident district at that time, unless the 138.21 school boards of the resident and nonresident district agree 138.22 otherwise. 138.23 (h) Within 15 calendar days of receiving the notice from 138.24 the parent or guardian, the nonresident district shall notify 138.25 the resident district in writing of the pupil's intention to 138.26 enroll in the nonresident district. 138.27 (i) A pupil enrolled in a nonresident district under this 138.28 subdivision is not required to make annual or periodic 138.29 application for enrollment but may remain enrolled in the same 138.30 district. A pupil may transfer to the resident district at any 138.31 time. 138.32 (j) A pupil enrolled in a nonresident district and applying 138.33 to transfer into or out of a district that has a desegregation 138.34 plan must follow the procedures of this subdivision. For the 138.35 purposes of this type of transfer, "resident district" means the 138.36 nonresident district in which the pupil is enrolled at the time 139.1 of application. 139.2 (k) A district that has a desegregation plan approved by 139.3 thestate board of educationcommissioner of children, families, 139.4 and learning must accept or reject each individual application 139.5 in a manner that will enable compliance with its desegregation 139.6 plan. 139.7 Sec. 10. Minnesota Statutes 1996, section 120.064, 139.8 subdivision 4, is amended to read: 139.9 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 139.10 authorize one or more licensed teachers under section 125.05, 139.11 subdivision 1, to operate a charter school subject to approval 139.12 by thestate board of educationcommissioner of children, 139.13 families, and learning. If a school board elects not to sponsor 139.14 a charter school, the applicant may appeal the school board's 139.15 decision to thestate board of educationcommissioner of 139.16 children, families, and learning if two members of the school 139.17 board voted to sponsor the school. If thestate139.18boardcommissioner authorizes the school, thestate board139.19 commissioner shall sponsor the school according to this 139.20 section. The school shall be organized and operated as a 139.21 cooperative under chapter 308A or nonprofit corporation under 139.22 chapter 317A. 139.23 (b) Before the operators may form and operate a school, the 139.24 sponsor must file an affidavit with thestate board of education139.25 commissioner of children, families, and learning stating its 139.26 intent to authorize a charter school. The affidavit must state 139.27 the terms and conditions under which the sponsor would authorize 139.28 a charter school. Thestate boardcommissioner must approve or 139.29 disapprove the sponsor's proposed authorization within 60 days 139.30 of receipt of the affidavit. Failure to obtainstate boardthe 139.31 commissioner's approval precludes a sponsor from authorizing the 139.32 charter school that was the subject of the affidavit. 139.33 (c) The operators authorized to organize and operate a 139.34 school shall hold an election for members of the school's board 139.35 of directors in a timely manner after the school is operating. 139.36 Any staff members who are employed at the school, including 140.1 teachers providing instruction under a contract with a 140.2 cooperative, and all parents of children enrolled in the school 140.3 may participate in the election. Licensed teachers employed at 140.4 the school, including teachers providing instruction under a 140.5 contract with a cooperative, must be a majority of the members 140.6 of the board of directors. A provisional board may operate 140.7 before the election of the school's board of directors. Board 140.8 of director meetings must comply with section 471.705. 140.9 (d) The granting or renewal of a charter by a sponsoring 140.10 entity shall not be conditioned upon the bargaining unit status 140.11 of the employees of the school. 140.12 Sec. 11. Minnesota Statutes 1997 Supplement, section 140.13 120.064, subdivision 8, is amended to read: 140.14 Subd. 8. [REQUIREMENTS.] (a) A charter school shall meet 140.15 all applicable state and local health and safety requirements. 140.16 (b) A school sponsored by a school board may be located in 140.17 any district, unless the school board of the district of the 140.18 proposed location disapproves by written resolution. If such a 140.19 school board denies a request to locate within its boundaries a 140.20 charter school sponsored by another school board, the sponsoring 140.21 school board may appeal to thestate board of education140.22 commissioner of children, families, and learning. If thestate140.23boardcommissioner authorizes the school, thestate board140.24 commissioner shall sponsor the school. 140.25 (c) A charter school must be nonsectarian in its programs, 140.26 admission policies, employment practices, and all other 140.27 operations. A sponsor may not authorize a charter school or 140.28 program that is affiliated with a nonpublic sectarian school or 140.29 a religious institution. 140.30 (d) Charter schools shall not be used as a method of 140.31 providing education or generating revenue for students who are 140.32 being home-schooled. 140.33 (e) The primary focus of a charter school must be to 140.34 provide a comprehensive program of instruction for at least one 140.35 grade or age group from five through 18 years of age. 140.36 Instruction may be provided to people younger than five years 141.1 and older than 18 years of age. 141.2 (f) A charter school may not charge tuition. 141.3 (g) A charter school is subject to and shall comply with 141.4 chapter 363 and section 126.21. 141.5 (h) A charter school is subject to and shall comply with 141.6 The Pupil Fair Dismissal Act, sections 127.26 to 127.39, and the 141.7 Minnesota public school fee law, sections 120.71 to 120.76. 141.8 (i) A charter school is subject to the same financial 141.9 audits, audit procedures, and audit requirements as a school 141.10 district. The audit must be consistent with the requirements of 141.11 sections 121.904 to 121.917, except to the extent deviations are 141.12 necessary because of the program at the school. The department 141.13 of children, families, and learning, state auditor, or 141.14 legislative auditor may conduct financial, program, or 141.15 compliance audits. 141.16 (j) A charter school is a school district for the purposes 141.17 of tort liability under chapter 466. 141.18 Sec. 12. Minnesota Statutes 1997 Supplement, section 141.19 120.064, subdivision 10, is amended to read: 141.20 Subd. 10. [PUPIL PERFORMANCE.] A charter school must 141.21 design its programs to at least meet the outcomes adopted by the 141.22state board of educationcommissioner of children, families, and 141.23 learning for public school students. In the absence ofstate141.24boardrequirements adopted by the commissioner, the school must 141.25 meet the outcomes contained in the contract with the sponsor. 141.26 The achievement levels of the outcomes contained in the contract 141.27 may exceed the achievement levels of any outcomes adopted by the 141.28state boardcommissioner for public school students. 141.29 Sec. 13. Minnesota Statutes 1996, section 120.064, 141.30 subdivision 14, is amended to read: 141.31 Subd. 14. [REPORTS.] A charter school must report at least 141.32 annually to its sponsor and thestate board of education141.33 commissioner of children, families, and learning the information 141.34 required by the sponsor or thestate boardcommissioner. The 141.35 reports are public data under chapter 13. 141.36 Sec. 14. Minnesota Statutes 1997 Supplement, section 142.1 120.064, subdivision 14a, is amended to read: 142.2 Subd. 14a. [REVIEW AND COMMENT.] The department shall 142.3 review and comment on the evaluation, by the chartering school 142.4 district, of the performance of a charter school before the 142.5 charter school's contract is renewed. The information from the 142.6 review and comment shall be reported to thestate board of142.7educationcommissioner of children, families, and learning in a 142.8 timely manner. Periodically, thestate boardcommissioner shall 142.9 report trends or suggestions based on the evaluation of charter 142.10 school contracts to the education committees of the state 142.11 legislature. 142.12 Sec. 15. Minnesota Statutes 1996, section 120.064, 142.13 subdivision 17, is amended to read: 142.14 Subd. 17. [INITIAL COSTS.] A sponsor may authorize a 142.15 charter school before the applicant has secured its space, 142.16 equipment, facilities, and personnel if the applicant indicates 142.17 the authority is necessary for it to raise working capital. A 142.18 sponsor may not authorize a school before thestate board of142.19educationcommissioner of children, families, and learning has 142.20 approved the authorization. 142.21 Sec. 16. Minnesota Statutes 1996, section 120.064, 142.22 subdivision 21, is amended to read: 142.23 Subd. 21. [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 142.24 duration of the contract with a sponsor shall be for the term 142.25 contained in the contract according to subdivision 5. The 142.26 sponsor may or may not renew a contract at the end of the term 142.27 for any ground listed in paragraph (b). A sponsor may 142.28 unilaterally terminate a contract during the term of the 142.29 contract for any ground listed in paragraph (b). At least 60 142.30 days before not renewing or terminating a contract, the sponsor 142.31 shall notify the board of directors of the charter school of the 142.32 proposed action in writing. The notice shall state the grounds 142.33 for the proposed action in reasonable detail and that the 142.34 charter school's board of directors may request in writing an 142.35 informal hearing before the sponsor within 14 days of receiving 142.36 notice of nonrenewal or termination of the contract. Failure by 143.1 the board of directors to make a written request for a hearing 143.2 within the 14-day period shall be treated as acquiescence to the 143.3 proposed action. Upon receiving a timely written request for a 143.4 hearing, the sponsor shall give reasonable notice to the charter 143.5 school's board of directors of the hearing date. The sponsor 143.6 shall conduct an informal hearing before taking final action. 143.7 The sponsor shall take final action to renew or not renew a 143.8 contract by the last day of classes in the school year. If the 143.9 sponsor is a local school board, the school's board of directors 143.10 may appeal the sponsor's decision to thestate board of143.11educationcommissioner of children, families, and learning. 143.12 (b) A contract may be terminated or not renewed upon any of 143.13 the following grounds: 143.14 (1) failure to meet the requirements for pupil performance 143.15 contained in the contract; 143.16 (2) failure to meet generally accepted standards of fiscal 143.17 management; 143.18 (3) for violations of law; or 143.19 (4) other good cause shown. 143.20 If a contract is terminated or not renewed, the school 143.21 shall be dissolved according to the applicable provisions of 143.22 chapter 308A or 317A. 143.23 Sec. 17. Minnesota Statutes 1996, section 120.064, 143.24 subdivision 24, is amended to read: 143.25 Subd. 24. [IMMUNITY.] Thestate board of education,143.26members of the state boardcommissioner of children, families, 143.27 and learning, a sponsor, members of the board of a sponsor in 143.28 their official capacity, and employees of a sponsor are immune 143.29 from civil or criminal liability with respect to all activities 143.30 related to a charter school they approve or sponsor. The board 143.31 of directors shall obtain at least the amount of and types of 143.32 insurance required by the contract, according to subdivision 5. 143.33 Sec. 18. Minnesota Statutes 1996, section 120.101, 143.34 subdivision 7, is amended to read: 143.35 Subd. 7. [REQUIREMENTS FOR INSTRUCTORS.] A person who is 143.36 providing instruction to a child must meet at least one of the 144.1 following requirements: 144.2 (1) hold a valid Minnesota teaching license in the field 144.3 and for the grade level taught; 144.4 (2) be directly supervised by a person holding a valid 144.5 Minnesota teaching license; 144.6 (3) successfully complete a teacher competency examination; 144.7 (4) provide instruction in a school that is accredited by 144.8 an accrediting agency, recognized according to section 123.935, 144.9 subdivision 7, or recognized by thestate board of144.10educationcommissioner of children, families, and learning; 144.11 (5) hold a baccalaureate degree; or 144.12 (6) be the parent of a child who is assessed according to 144.13 the procedures in subdivision 8. 144.14 Any person providing instruction in a public school must 144.15 meet the requirements of clause (1). 144.16 Sec. 19. Minnesota Statutes 1996, section 120.101, 144.17 subdivision 8, is amended to read: 144.18 Subd. 8. [ASSESSMENT OF PERFORMANCE.] (a) Each year the 144.19 performance of every child who is not enrolled in a public 144.20 school must be assessed using a nationally norm-referenced 144.21 standardized achievement examination. The superintendent of the 144.22 district in which the child receives instruction and the person 144.23 in charge of the child's instruction must agree about the 144.24 specific examination to be used and the administration and 144.25 location of the examination. 144.26 (b) To the extent the examination in paragraph (a) does not 144.27 provide assessment in all of the subject areas in subdivision 6, 144.28 the parent must assess the child's performance in the applicable 144.29 subject area. This requirement applies only to a parent who 144.30 provides instruction and does not meet the requirements of 144.31 subdivision 7, clause (1), (2), or (3). 144.32 (c) If the results of the assessments in paragraphs (a) and 144.33 (b) indicate that the child's performance on the total battery 144.34 score is at or below the 30th percentile or one grade level 144.35 below the performance level for children of the same age, the 144.36 parent shall obtain additional evaluation of the child's 145.1 abilities and performance for the purpose of determining whether 145.2 the child has learning problems. 145.3 (d) A child receiving instruction from a nonpublic school, 145.4 person, or institution that is accredited by an accrediting 145.5 agency, recognized according to section 123.935, subdivision 7, 145.6 or recognized by thestate board of educationcommissioner of 145.7 children, families, and learning, is exempt from the 145.8 requirements of this subdivision. 145.9 Sec. 20. Minnesota Statutes 1996, section 120.102, 145.10 subdivision 3, is amended to read: 145.11 Subd. 3. [EXEMPTIONS.] A nonpublic school, person, or 145.12 other institution that is accredited by an accrediting agency, 145.13 recognized according to section 123.935, or recognized by the 145.14state board of educationcommissioner of children, families, and 145.15 learning, is exempt from the requirements in subdivisions 1 and 145.16 2, except for the requirement in subdivision 1, clause (1). 145.17 Sec. 21. Minnesota Statutes 1997 Supplement, section 145.18 120.1045, subdivision 1, is amended to read: 145.19 Subdivision 1. [BACKGROUND CHECK REQUIRED.] (a) A school 145.20 hiring authority, as defined in subdivision 4, shall request a 145.21 criminal history background check from the superintendent of the 145.22 bureau of criminal apprehension on all individuals who are 145.23 offered employment in the school, as defined in subdivision 4. 145.24 In order to be eligible for employment, an individual who is 145.25 offered employment must provide an executed criminal history 145.26 consent form and a money order or check payable to either the 145.27 bureau of criminal apprehension or the school hiring authority, 145.28 at the election of the school hiring authority, in an amount 145.29 equal to the actual cost to the bureau of criminal apprehension 145.30 and the school district of conducting the criminal history 145.31 background check. A school hiring authority electing to receive 145.32 payment may, at its discretion, accept payment in the form of a 145.33 negotiable instrument other than a money order or check and 145.34 shall pay the superintendent of the bureau of criminal 145.35 apprehension directly to conduct the background check. The 145.36 superintendent of the bureau of criminal apprehension shall 146.1 conduct the background check by retrieving criminal history data 146.2 maintained in the criminal justice information system 146.3 computers. A school hiring authority, at its discretion, may 146.4 elect not to request a criminal history background check on an 146.5 individual who holds an initial entrance license issued by the 146.6 state board of teaching or thestate board of146.7educationcommissioner of children, families, and learning 146.8 within the 12 months preceding an offer of employment. 146.9 (b) A school hiring authority may use the results of a 146.10 criminal background check conducted at the request of another 146.11 school hiring authority if: 146.12 (1) the results of the criminal background check are on 146.13 file with the other school hiring authority or otherwise 146.14 accessible; 146.15 (2) the other school hiring authority conducted a criminal 146.16 background check within the previous 12 months; 146.17 (3) the individual who is the subject of the criminal 146.18 background check executes a written consent form giving a school 146.19 hiring authority access to the results of the check; and 146.20 (4) there is no reason to believe that the individual has 146.21 committed an act subsequent to the check that would disqualify 146.22 the individual for employment. 146.23 (c) A school hiring authority may, at its discretion, 146.24 request a criminal history background check from the 146.25 superintendent of the bureau of criminal apprehension on any 146.26 individual who seeks to enter a school or its grounds for the 146.27 purpose of serving as a school volunteer or working as an 146.28 independent contractor or student employee. In order for an 146.29 individual to enter a school or its grounds under this paragraph 146.30 when the school hiring authority elects to request a criminal 146.31 history background check on the individual, the individual first 146.32 must provide an executed criminal history consent form and a 146.33 money order, check, or other negotiable instrument payable to 146.34 the school district in an amount equal to the actual cost to the 146.35 bureau of criminal apprehension and the school district of 146.36 conducting the criminal history background check. 147.1 Notwithstanding section 299C.62, subdivision 1, the cost of the 147.2 criminal history background check under this paragraph is the 147.3 responsibility of the individual. 147.4 (d) For all nonstate residents who are offered employment 147.5 in a school, a school hiring authority shall request a criminal 147.6 history background check on such individuals from the 147.7 superintendent of the bureau of criminal apprehension and from 147.8 the government agency performing the same function in the 147.9 resident state or, if no government entity performs the same 147.10 function in the resident state, from the Federal Bureau of 147.11 Investigation. Such individuals must provide an executed 147.12 criminal history consent form and a money order, check, or other 147.13 negotiable instrument payable to the school hiring authority in 147.14 an amount equal to the actual cost to the government agencies 147.15 and the school district of conducting the criminal history 147.16 background check. Notwithstanding section 299C.62, subdivision 147.17 1, the cost of the criminal history background check under this 147.18 paragraph is the responsibility of the individual. 147.19 Sec. 22. Minnesota Statutes 1996, section 120.17, 147.20 subdivision 3, is amended to read: 147.21 Subd. 3. [RULES OF THESTATE BOARDCOMMISSIONER OF 147.22 CHILDREN, FAMILIES, AND LEARNING.] (a) Thestate147.23boardcommissioner of children, families, and learning shall 147.24 promulgate rules relative to qualifications of essential 147.25 personnel, courses of study, methods of instruction, pupil 147.26 eligibility, size of classes, rooms, equipment, supervision, 147.27 parent consultation, and any other rulesitthe commissioner 147.28 deems necessary for instruction of children with a disability. 147.29 These rules shall provide standards and procedures appropriate 147.30 for the implementation of and within the limitations of 147.31 subdivisions 3a and 3b. These rules shall also provide 147.32 standards for the discipline, control, management and protection 147.33 of children with a disability. Thestate boardcommissioner 147.34 shall not adopt rules for pupils served in level 1, 2, or 3, as 147.35 defined in Minnesota Rules, part 3525.2340, establishing either 147.36 case loads or the maximum number of pupils that may be assigned 148.1 to special education teachers. Thestate boardcommissioner, in 148.2 consultation with the departments of health and human services, 148.3 shall adopt permanent rules for instruction and services for 148.4 children under age five and their families. These rules are 148.5 binding on state and local education, health, and human services 148.6 agencies. Thestate boardcommissioner shall adopt rules to 148.7 determine eligibility for special education services. The rules 148.8 shall include procedures and standards by which to grant 148.9 variances for experimental eligibility criteria. Thestate148.10boardcommissioner shall, according to section 14.05, 148.11 subdivision 4, notify a district applying for a variance from 148.12 the rules within 45 calendar days of receiving the request 148.13 whether the request for the variance has been granted or 148.14 denied. If a request is denied, theboardcommissioner shall 148.15 specify the program standards used to evaluate the request and 148.16 the reasons for denying the request. 148.17 (b) The state's regulatory scheme should support schools by 148.18 assuring that all state special education rules adopted by the 148.19state board of educationcommissioner of children, families, and 148.20 learning result in one or more of the following outcomes: 148.21 (1) increased time available to teachers for educating 148.22 students through direct and indirect instruction; 148.23 (2) consistent and uniform access to effective education 148.24 programs for students with disabilities throughout the state; 148.25 (3) reduced inequalities, conflict, and court actions 148.26 related to the delivery of special education instruction and 148.27 services for students with disabilities; 148.28 (4) clear expectations for service providers and for 148.29 students with disabilities; 148.30 (5) increased accountability for all individuals and 148.31 agencies that provide instruction and other services to students 148.32 with disabilities; 148.33 (6) greater focus for the state and local resources 148.34 dedicated to educating students with disabilities; and 148.35 (7) clearer standards for evaluating the effectiveness of 148.36 education and support services for students with disabilities. 149.1 Sec. 23. Minnesota Statutes 1996, section 120.17, 149.2 subdivision 3b, is amended to read: 149.3 Subd. 3b. [PROCEDURES FOR DECISIONS.] Every district shall 149.4 utilize at least the following procedures for decisions 149.5 involving identification, assessment, and educational placement 149.6 of children with a disability: 149.7 (a) Parents and guardians shall receive prior written 149.8 notice of: 149.9 (1) any proposed formal educational assessment or proposed 149.10 denial of a formal educational assessment of their child; 149.11 (2) a proposed placement of their child in, transfer from 149.12 or to, or denial of placement in a special education program; or 149.13 (3) the proposed provision, addition, denial or removal of 149.14 special education services for their child; 149.15 (b) The district shall not proceed with the initial formal 149.16 assessment of a child, the initial placement of a child in a 149.17 special education program, or the initial provision of special 149.18 education services for a child without the prior written consent 149.19 of the child's parent or guardian. The refusal of a parent or 149.20 guardian to consent may be overridden by the decision in a 149.21 hearing held pursuant to clause (e) at the district's 149.22 initiative; 149.23 (c) Parents and guardians shall have an opportunity to meet 149.24 with appropriate district staff in at least one conciliation 149.25 conference, mediation, or other method of alternative dispute 149.26 resolution that the parties agree to, if they object to any 149.27 proposal of which they are notified pursuant to clause (a). The 149.28 conciliation process or other form of alternative dispute 149.29 resolution shall not be used to deny or delay a parent or 149.30 guardian's right to a due process hearing. If the parent or 149.31 guardian refuses efforts by the district to conciliate the 149.32 dispute with the school district, the requirement of an 149.33 opportunity for conciliation or other alternative dispute 149.34 resolution shall be deemed to be satisfied. Notwithstanding 149.35 other law, in any proceeding following a conciliation 149.36 conference, the school district must not offer a conciliation 150.1 conference memorandum into evidence, except for any portions 150.2 that describe the district's final proposed offer of service. 150.3 Otherwise, with respect to forms of dispute resolution, 150.4 mediation, or conciliation, Minnesota Rule of Evidence 408 150.5 applies. The department of children, families, and learning may 150.6 reimburse the districts or directly pay the costs of lay 150.7 advocates, not to exceed $150 per dispute, used in conjunction 150.8 with alternative dispute resolution. 150.9 (d) The commissioner shall establish a mediation process to 150.10 assist parents, school districts, or other parties to resolve 150.11 disputes arising out of the identification, assessment, or 150.12 educational placement of children with a disability. The 150.13 mediation process must be offered as an informal alternative to 150.14 the due process hearing provided under clause (e), but must not 150.15 be used to deny or postpone the opportunity of a parent or 150.16 guardian to obtain a due process hearing. 150.17 (e) Parents, guardians, and the district shall have an 150.18 opportunity to obtain an impartial due process hearing initiated 150.19 and conducted by and in the school district responsible for 150.20 assuring that an appropriate program is provided in accordance 150.21 with stateboardrules, if the parent or guardian continues to 150.22 object to: 150.23 (1) a proposed formal educational assessment or proposed 150.24 denial of a formal educational assessment of their child; 150.25 (2) the proposed placement of their child in, or transfer 150.26 of their child to a special education program; 150.27 (3) the proposed denial of placement of their child in a 150.28 special education program or the transfer of their child from a 150.29 special education program; 150.30 (4) the proposed provision or addition of special education 150.31 services for their child; or 150.32 (5) the proposed denial or removal of special education 150.33 services for their child. 150.34 Within five business days after the request for a hearing, 150.35 or as directed by the hearing officer, the objecting party shall 150.36 provide the other party with a brief written statement of 151.1 particulars of the objection, the reasons for the objection, and 151.2 the specific remedies sought. The other party shall provide the 151.3 objecting party with a written response to the statement of 151.4 objections within five business days of receipt of the statement. 151.5 The hearing shall take place before an impartial hearing 151.6 officer mutually agreed to by the school board and the parent or 151.7 guardian. Within four business days of the receipt of the 151.8 request for the hearing, if the parties have not agreed on the 151.9 hearing officer, the school board shall request the commissioner 151.10 to appoint a hearing officer. The school board shall include 151.11 with the request the name of the person requesting the hearing, 151.12 the name of the student, the attorneys involved, if any, and the 151.13 date the hearing request was received. The hearing officer 151.14 shall not be a school board member or employee of the school 151.15 district where the child resides or of the child's school 151.16 district of residence, an employee of any other public agency 151.17 involved in the education or care of the child, or any person 151.18 with a personal or professional interest which would conflict 151.19 with the person's objectivity at the hearing. A person who 151.20 otherwise qualifies as a hearing officer is not an employee of 151.21 the district solely because the person is paid by the district 151.22 to serve as a hearing officer. If the hearing officer requests 151.23 an independent educational assessment of a child, the cost of 151.24 the assessment shall be at district expense. The proceedings 151.25 shall be recorded and preserved, at the expense of the school 151.26 district, pending ultimate disposition of the action. 151.27 (f) The decision of the hearing officer pursuant to clause 151.28 (e) shall be rendered not more than 45 calendar days from the 151.29 date of the receipt of the request for the hearing, except that 151.30 hearing officers are encouraged to accelerate the timeline to 30 151.31 days for children birth through two whose needs change rapidly 151.32 and require quick resolution of complaints. A hearing officer 151.33 may not grant specific extensions of time beyond the 45-day 151.34 period unless requested by either party for good cause shown on 151.35 the record. The decision of the hearing officer shall be 151.36 binding on all parties unless appealed to the commissioner by 152.1 the parent; guardian; school board of the district where the 152.2 child resides pursuant to clause (g); and also in the case of 152.3 children birth through two, by the county board. 152.4 The local decision shall: 152.5 (1) be in writing; 152.6 (2) state the controlling facts upon which the decision is 152.7 made in sufficient detail to apprise the parties and the hearing 152.8 review officer of the basis and reason for the decision; and 152.9 (3) be based on the standards set forth in subdivision 3a 152.10 and the rules of thestate boardcommissioner of children, 152.11 families, and learning. 152.12 (g) Any local decision issued pursuant to clauses (e) and 152.13 (f) may be appealed to the commissioner within 30 calendar days 152.14 of receipt of that written decision, by the parent, guardian, or 152.15 the school board of the district responsible for assuring that 152.16 an appropriate program is provided in accordance with state 152.17boardrules. The appealing party shall note the specific parts 152.18 of the hearing decision being appealed. 152.19 If the decision is appealed, a written transcript of the 152.20 hearing shall be made by the school district and provided by the 152.21 district to the parties involved and the hearing review officer 152.22 within five calendar days of the filing of the appeal. The 152.23 hearing review officer shall conduct an appellate review and 152.24 issue a final independent decision based on an impartial review 152.25 of the local decision and the entire record within 30 calendar 152.26 days after the filing of the appeal. However, the hearing 152.27 review officer shall seek additional evidence if necessary and 152.28 may afford the parties an opportunity for written or oral 152.29 argument; provided any hearing held to seek additional evidence 152.30 shall be an impartial due process hearing but shall be deemed 152.31 not to be a contested case hearing for purposes of chapter 14. 152.32 The hearing review officer may grant specific extensions of time 152.33 beyond the 30-day period at the request of any party for good 152.34 cause shown on the record. 152.35 The final decision shall: 152.36 (1) be in writing; 153.1 (2) include findings and conclusions; and 153.2 (3) be based upon the standards set forth in subdivision 3a 153.3 and in the rules of thestate boardcommissioner of children, 153.4 families, and learning. 153.5 (h) The decision of the hearing review officer shall be 153.6 final unless appealed by the parent or guardian or school board 153.7 to the Minnesota court of appeals or federal district court as 153.8 provided by federal law. State judicial review shall be in 153.9 accordance with chapter 14. 153.10 (i) The commissioner of children, families, and learning 153.11 shall select an individual who has the qualifications enumerated 153.12 in this paragraph to serve as the hearing review officer: 153.13 (1) the individual must be knowledgeable and impartial; 153.14 (2) the individual must not have a personal interest in or 153.15 specific involvement with the student who is a party to the 153.16 hearing; 153.17 (3) the individual must not have been employed as an 153.18 administrator by the district that is a party to the hearing; 153.19 (4) the individual must not have been involved in the 153.20 selection of the administrators of the district that is a party 153.21 to the hearing; 153.22 (5) the individual must not have a personal, economic, or 153.23 professional interest in the outcome of the hearing other than 153.24 the proper administration of the federal and state laws, rules, 153.25 and policies; 153.26 (6) the individual must not have substantial involvement in 153.27 the development of a state or local policy or procedures that 153.28 are challenged in the appeal; 153.29 (7) the individual is not a current employee or board 153.30 member of a Minnesota public school district, education 153.31 district, intermediate unit or regional education agency, the 153.32 department of children, families, and learning, the state board153.33of education; and 153.34 (8) the individual is not a current employee or board 153.35 member of a disability advocacy organization or group. 153.36 (j) In all appeals, the parent or guardian of the pupil 154.1 with a disability or the district that is a party to the hearing 154.2 may challenge the impartiality or competence of the proposed 154.3 hearing review officer by applying to the hearing review officer. 154.4 (k) Pending the completion of proceedings pursuant to this 154.5 subdivision, unless the district and the parent or guardian of 154.6 the child agree otherwise, the child shall remain in the child's 154.7 current educational placement and shall not be denied initial 154.8 admission to school. 154.9 (l) The child's school district of residence, a resident 154.10 district, and providing district shall receive notice of and may 154.11 be a party to any hearings or appeals under this subdivision. 154.12 (m) A school district is not liable for harmless technical 154.13 violations of this subdivision or rules implementing this 154.14 subdivision if the school district can demonstrate on a 154.15 case-by-case basis that the violations did not harm the 154.16 student's educational progress or the parent or guardian's right 154.17 to notice, participation, or due process. 154.18 (n) Within ten calendar days after appointment, the hearing 154.19 officer shall schedule and hold a prehearing conference. At 154.20 that conference, or later, the hearing officer may take any 154.21 appropriate action that a court might take under Rule 16 of 154.22 Minnesota Rules of Civil Procedure including, but not limited 154.23 to, scheduling, jurisdiction, and listing witnesses including 154.24 expert witnesses. 154.25 (o) A hearing officer or hearing review officer appointed 154.26 under this subdivision shall be deemed to be an employee of the 154.27 state under section 3.732 for the purposes of section 3.736 only. 154.28 (p) In order to be eligible for selection, hearing officers 154.29 and hearing review officers shall participate in training and 154.30 follow procedures as designated by the commissioner. 154.31 (q) The hearing officer may admit all evidence which 154.32 possesses probative value, including hearsay, if it is the type 154.33 of evidence on which reasonable, prudent persons are accustomed 154.34 to rely in the conduct of their serious affairs. The hearing 154.35 officer shall give effect to the rules of privilege recognized 154.36 by law. Evidence which is incompetent, irrelevant, immaterial, 155.1 or unduly repetitious shall be excluded. 155.2 Sec. 24. Minnesota Statutes 1996, section 120.17, 155.3 subdivision 7a, is amended to read: 155.4 Subd. 7a. [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 155.5 Responsibility for special instruction and services for a 155.6 visually disabled or hearing impaired child attending the 155.7 Minnesota state academy for the deaf or the Minnesota state 155.8 academy for the blind shall be determined in the following 155.9 manner: 155.10 (a) The legal residence of the child shall be the school 155.11 district in which the child's parent or guardian resides. 155.12 (b) When it is determined pursuant to section 128A.05, 155.13 subdivision 1 or 2, that the child is entitled to attend either 155.14 school, thestateboard of the Faribault academies shall provide 155.15 the appropriate educational program for the child. Thestate155.16 board of the Faribault academies shall make a tuition charge to 155.17 the child's district of residence for the cost of providing the 155.18 program. The amount of tuition charged shall not exceed the 155.19 basic revenue of the district for that child, for the amount of 155.20 time the child is in the program. For purposes of this 155.21 subdivision, "basic revenue" has the meaning given it in section 155.22 124A.22, subdivision 2. The district of the child's residence 155.23 shall pay the tuition and may claim general education aid for 155.24 the child. Tuition received by thestateboard of the Faribault 155.25 academies, except for tuition received under clause (c), shall 155.26 be deposited in the state treasury as provided in clause (g). 155.27 (c) In addition to the tuition charge allowed in clause 155.28 (b), the academies may charge the child's district of residence 155.29 for the academy's unreimbursed cost of providing an 155.30 instructional aide assigned to that child, if that aide is 155.31 required by the child's individual education plan. Tuition 155.32 received under this clause must be used by the academies to 155.33 provide the required service. 155.34 (d) When it is determined that the child can benefit from 155.35 public school enrollment but that the child should also remain 155.36 in attendance at the applicable school, the school district 156.1 where the institution is located shall provide an appropriate 156.2 educational program for the child and shall make a tuition 156.3 charge to thestateboard of the Faribault academies for the 156.4 actual cost of providing the program, less any amount of aid 156.5 received pursuant to section 124.32. Thestateboard of the 156.6 Faribault academies shall pay the tuition and other program 156.7 costs including the unreimbursed transportation costs. Aids for 156.8 children with a disability shall be paid to the district 156.9 providing the special instruction and services. Special 156.10 transportation shall be provided by the district providing the 156.11 educational program and the state shall reimburse such district 156.12 within the limits provided by law. 156.13 (e) Notwithstanding the provisions of clauses (b) and (d), 156.14 thestateboard of the Faribault academies may agree to make a 156.15 tuition charge for less than the amount specified in clause (b) 156.16 for pupils attending the applicable school who are residents of 156.17 the district where the institution is located and who do not 156.18 board at the institution, if that district agrees to make a 156.19 tuition charge to thestateboard of the Faribault academies for 156.20 less than the amount specified in clause (d) for providing 156.21 appropriate educational programs to pupils attending the 156.22 applicable school. 156.23 (f) Notwithstanding the provisions of clauses (b) and (d), 156.24 thestateboard of the Faribault academies may agree to supply 156.25 staff from the Minnesota state academy for the deaf and the 156.26 Minnesota state academy for the blind to participate in the 156.27 programs provided by the district where the institutions are 156.28 located when the programs are provided to students in attendance 156.29 at the state schools. 156.30 (g) On May 1 of each year, thestateboard of the Faribault 156.31 academies shall count the actual number of Minnesota resident 156.32 kindergarten and elementary students and the actual number of 156.33 Minnesota resident secondary students enrolled and receiving 156.34 education services at the Minnesota state academy for the deaf 156.35 and the Minnesota state academy for the blind. Thestateboard 156.36 of the Faribault academies shall deposit in the state treasury 157.1 an amount equal to all tuition received less: 157.2 (1) the total number of students on May 1 less 175, times 157.3 the ratio of the number of kindergarten and elementary students 157.4 to the total number of students on May 1, times the general 157.5 education formula allowance; plus 157.6 (2) the total number of students on May 1 less 175, times 157.7 the ratio of the number of secondary students on May 1 to the 157.8 total number of students on May 1, times 1.3, times the general 157.9 education formula allowance. 157.10 (h) The sum provided by the calculation in clause (g), 157.11 subclauses (1) and (2), must be deposited in the state treasury 157.12 and credited to the general operation account of the academy for 157.13 the deaf and the academy for the blind. 157.14 (i) There is annually appropriated to the department of 157.15 children, families, and learning for the Faribault academies the 157.16 tuition amounts received and credited to the general operation 157.17 account of the academies under this section. A balance in an 157.18 appropriation under this paragraph does not cancel but is 157.19 available in successive fiscal years. 157.20 Sec. 25. Minnesota Statutes 1996, section 120.66, 157.21 subdivision 1, is amended to read: 157.22 Subdivision 1. Thestate board of educationcommissioner 157.23 of children, families, and learning shall: 157.24 (1) Promulgate rules necessary to the operation of sections 157.25 120.59 to 120.67; 157.26 (2) Cooperate with and provide supervision of flexible 157.27 learning year programs to determine compliance with the 157.28 provisions of sections 120.59 to 120.67, thestate board157.29 department standards and qualifications, and the proposed 157.30 program as submitted and approved; 157.31 (3) Provide any necessary adjustments of (a) attendance and 157.32 membership computations and (b) the dates and percentages of 157.33 apportionment of state aids; 157.34 (4) Consistent with the definition of "average daily 157.35 membership" in section 124.17, subdivision 2, furnish the board 157.36 of a district implementing a flexible learning year program with 158.1 a formula for computing average daily membership. This formula 158.2 shall be computed so that tax levies to be made by the district, 158.3 state aids to be received by the district, and any and all other 158.4 formulas based upon average daily membership are not affected 158.5 solely as a result of adopting this plan of instruction. 158.6 Sec. 26. Minnesota Statutes 1996, section 120.66, 158.7 subdivision 2, is amended to read: 158.8 Subd. 2. Sections 120.59 to 120.67 shall not be construed 158.9 to authorize thestate boardcommissioner to require the 158.10 establishment of a flexible learning year program in any 158.11 district in which the board has not voted to establish, 158.12 maintain, and operate such a program. 158.13 Sec. 27. Minnesota Statutes 1996, section 120.73, 158.14 subdivision 1, is amended to read: 158.15 Subdivision 1. A school board is authorized to require 158.16 payment of fees in the following areas: 158.17 (a) in any program where the resultant product, in excess 158.18 of minimum requirements and at the pupil's option, becomes the 158.19 personal property of the pupil; 158.20 (b) admission fees or charges for extra curricular 158.21 activities, where attendance is optional and where the admission 158.22 fees or charges a student must pay to attend or participate in 158.23 an extracurricular activity is the same for all students, 158.24 regardless of whether the student is enrolled in a public or 158.25 home school; 158.26 (c) a security deposit for the return of materials, 158.27 supplies, or equipment; 158.28 (d) personal physical education and athletic equipment and 158.29 apparel, although any pupil may personally provide it if it 158.30 meets reasonable requirements and standards relating to health 158.31 and safety established by the school board; 158.32 (e) items of personal use or products which a student has 158.33 an option to purchase such as student publications, class rings, 158.34 annuals, and graduation announcements; 158.35 (f) fees specifically permitted by any other statute, 158.36 including but not limited to section 171.04, subdivision 1, 159.1 clause (1); 159.2 (g) field trips considered supplementary to a district 159.3 educational program; 159.4 (h) any authorized voluntary student health and accident 159.5 benefit plan; 159.6 (i) for the use of musical instruments owned or rented by 159.7 the district, a reasonable rental fee not to exceed either the 159.8 rental cost to the district or the annual depreciation plus the 159.9 actual annual maintenance cost for each instrument; 159.10 (j) transportation of pupils to and from extra curricular 159.11 activities conducted at locations other than school, where 159.12 attendance is optional; 159.13 (k) transportation of pupils to and from school for which 159.14 aid for fiscal year 1996 is not authorized under Minnesota 159.15 Statutes 1994, section 124.223, subdivision 1, and for which 159.16 levy for fiscal year 1996 is not authorized under Minnesota 159.17 Statutes 1994, section 124.226, subdivision 5, if a district 159.18 charging fees for transportation of pupils establishes 159.19 guidelines for that transportation to ensure that no pupil is 159.20 denied transportation solely because of inability to pay; 159.21 (l) motorcycle classroom education courses conducted 159.22 outside of regular school hours; provided the charge shall not 159.23 exceed the actual cost of these courses to the school district; 159.24 (m) transportation to and from post-secondary institutions 159.25 for pupils enrolled under the post-secondary enrollment options 159.26 program under section 123.39, subdivision 16. Fees collected 159.27 for this service must be reasonable and shall be used to reduce 159.28 the cost of operating the route. Families who qualify for 159.29 mileage reimbursement under section 123.3514, subdivision 8, may 159.30 use their state mileage reimbursement to pay this fee. If no 159.31 fee is charged, districts shall allocate costs based on the 159.32 number of pupils riding the route; and 159.33 (n) fees or tuition for instruction qualifying as an 159.34 education-related expense according to section 290.0674, 159.35 subdivision 1, clause (1). 159.36 Sec. 28. Minnesota Statutes 1996, section 120.74, 160.1 subdivision 1, is amended to read: 160.2 Subdivision 1. (a) A school board is not authorized to 160.3 charge fees in the following areas: 160.4 (1) textbooks, workbooks, art materials, laboratory 160.5 supplies, towels; 160.6 (2) supplies necessary for participation in any 160.7 instructional course except as authorized in sections 120.73 and 160.8 120.75; 160.9 (3) field trips which are required as a part of a basic 160.10 education program or course; 160.11 (4) graduation caps, gowns, any specific form of dress 160.12 necessary for any educational program, and diplomas; 160.13 (5) instructional costs for necessary school personnel 160.14 employed in any course or educational program required for 160.15 graduation; 160.16 (6) library books required to be utilized for any 160.17 educational course or program; 160.18 (7) admission fees, dues, or fees for any activity the 160.19 pupil is required to attend; 160.20 (8) any admission or examination cost for any required 160.21 educational course or program, except as authorized in section 160.22 120.73, subdivision 1, clause (n); 160.23 (9) locker rentals; 160.24 (10) transportation of pupils (i) for which state 160.25 transportation aid for fiscal year 1996 is authorized pursuant 160.26 to Minnesota Statutes 1994, section 124.223, or (ii) for which a 160.27 levy for fiscal year 1996 is authorized under Minnesota Statutes 160.28 1994, section 124.226, subdivision 5. 160.29 (b) Notwithstanding paragraph (a), clauses (1) and (6), a 160.30 school board may charge fees for textbooks, workbooks, and 160.31 library books, lost or destroyed by students. The board must 160.32 annually notify parents or guardians and students about its 160.33 policy to charge a fee under this paragraph. 160.34 Sec. 29. Minnesota Statutes 1996, section 121.02, 160.35 subdivision 1, is amended to read: 160.36 Subdivision 1. [DEPARTMENT.] A state department of 161.1 children, families, and learning is hereby created which shall 161.2 be maintained under the direction ofa state board of education161.3composed of nine representative citizens of the state, at least161.4one of whom shall reside in each congressional district in the161.5state.161.6Of the nine representative citizens of the state who are161.7appointed to the state board of education not less than three161.8members thereof shall previously thereto have served as an161.9elected member of a board of education of a school district161.10however organized.161.11The members of the state board shall be appointed by the161.12governor, with the advice and consent of the senate. One member161.13shall be chosen annually as president, but no member shall serve161.14as president more than three consecutive years. The state board161.15shall hold its annual meeting in August. It shall hold meetings161.16on dates and at places as it designates. No member shall hold161.17any public office, or represent or be employed by any board of161.18education or school district, public or private, and shall not161.19voluntarily have any personal financial interest in any contract161.20with a board of education or school district, or be engaged in161.21any capacity where a conflict of interest may arisethe 161.22 commissioner of children, families, and learning. 161.23 Sec. 30. Minnesota Statutes 1996, section 121.11, 161.24 subdivision 7d, is amended to read: 161.25 Subd. 7d. [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, 161.26 AND LICENSURE RULES.] (a)The state board mayBy January 10, 161.27 1999, the commissioner shall make rules relating to 161.28 desegregation/integration,and inclusive education, and161.29licensure of school personnel not licensed by the board of161.30teaching. 161.31 (b) In adopting a rule related to school 161.32 desegregation/integration, thestate boardcommissioner shall 161.33 address the need for equal educational opportunities for all 161.34 students and racial balance as defined by the state board. 161.35 Sec. 31. Minnesota Statutes 1997 Supplement, section 161.36 121.1113, subdivision 1, is amended to read: 162.1 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 162.2 with advice from experts with appropriate technical 162.3 qualifications and experience and stakeholders, shall include in 162.4 the comprehensive assessment system, for each grade level to be 162.5 tested, a single statewide norm-referenced or 162.6 criterion-referenced test, or a combination of a norm-referenced 162.7 and a criterion-referenced test, which shall be highly 162.8 correlated with the state's graduation standards and 162.9 administered annually to all students in the third, fifth, and 162.10 eighth grades. The commissioner shall establish one or more 162.11 months during which schools shall administer the tests to 162.12 students each school year. The Minnesota basic skills tests in 162.13 reading and mathematics shall fulfill students' eighth grade 162.14 testing requirements. 162.15 (b) In addition, at the secondary level, districts shall 162.16 assess student performance in all required learning areas and 162.17 selected required standards within each area of the profiles of 162.18 learning. The testing instruments and testing process shall be 162.19 determined by the commissioner. The results shall be aggregated 162.20 at the site and district level. The testing shall be 162.21 administered beginning in the 1999-2000 school year and 162.22 thereafter. 162.23 (c) The comprehensive assessment system shall include an 162.24 evaluation of school site and school district performance levels 162.25 during the 1997-1998 school year and thereafter using an 162.26 established performance baseline developed from students' test 162.27 scores under this section that records, at a minimum, students' 162.28 unweighted mean test scores in each tested subject, a second 162.29 performance baseline that reports, at a minimum, the same 162.30 unweighted mean test scores of only those students enrolled in 162.31 the school by January 1 of the previous school year, and a third 162.32 performance baseline that reports the same unweighted test 162.33 scores of all students except those students receiving limited 162.34 English proficiency instruction. The evaluation also shall 162.35 record separately, in proximity to the performance baselines, 162.36 the percentages of students who are eligible to receive a free 163.1 or reduced price school meal, demonstrate limited English 163.2 proficiency, or are eligible to receive special education 163.3 services. 163.4 (d) In addition to the testing and reporting requirements 163.5 under paragraphs (a), (b), and (c), the commissioner, in163.6consultation with the state board of education,shall include 163.7 the following components in the statewide educational 163.8 accountability and public reporting system: 163.9 (1) uniform statewide testing of all third, fifth, eighth, 163.10 and post-eighth grade students with exemptions, only with parent 163.11 or guardian approval, from the testing requirement only for 163.12 those very few students for whom the student's individual 163.13 education plan team under section 120.17, subdivision 2, 163.14 determines that the student is incapable of taking a statewide 163.15 test, or a limited English proficiency student under section 163.16 126.262, subdivision 2, if the student has been in the United 163.17 States for fewer than 12 months and for whom special language 163.18 barriers exist, such as the student's native language does not 163.19 have a written form or the district does not have access to 163.20 appropriate interpreter services for the student's native 163.21 language; 163.22 (2) educational indicators that can be aggregated and 163.23 compared across school districts and across time on a statewide 163.24 basis; 163.25 (3) students' scores on the American College Test; 163.26 (4) participation in the National Assessment of Educational 163.27 Progress so that the state can benchmark its performance against 163.28 the nation and other states, and, where possible, against other 163.29 countries, and contribute to the national effort to monitor 163.30 achievement; and 163.31 (5) basic skills and advanced competencies connecting 163.32 teaching and learning to high academic standards, assessment, 163.33 and transitions to citizenship and employment. 163.34 (e) Districts must report exemptions under paragraph (d), 163.35 clause (1), to the commissioner consistent with a format 163.36 provided by the commissioner. 164.1 Sec. 32. Minnesota Statutes 1996, section 121.1115, 164.2 subdivision 1, is amended to read: 164.3 Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 164.4 REPORTING.]Consistent with the state board of education process164.5to adopt a results-oriented graduation rule under section164.6121.11, subdivision 7c, the state board of education andThe 164.7 department of children, families, and learning, in consultation 164.8 with education and other system stakeholders, shall establish a 164.9 coordinated and comprehensive system of educational 164.10 accountability and public reporting that promotes higher 164.11 academic achievement. 164.12 Sec. 33. Minnesota Statutes 1996, section 121.14, is 164.13 amended to read: 164.14 121.14 [RECOMMENDATIONS; BUDGET.] 164.15 Thestate board and thecommissioner of children, families, 164.16 and learning shall recommend to the governor and legislature 164.17 such modification and unification of laws relating to the state 164.18 system of education as shall make those laws more readily 164.19 understood and more effective in execution. The commissioner of 164.20 children, families, and learning shall prepare a biennial 164.21 education budget which shall be submitted to the governor and 164.22 legislature, such budget to contain a complete statement of 164.23 finances pertaining to the maintenance of the state department 164.24 and to the distribution of state aid. 164.25 Sec. 34. Minnesota Statutes 1996, section 121.148, 164.26 subdivision 3, is amended to read: 164.27 Subd. 3. [NEGATIVE REVIEW AND COMMENT.] (a) If the 164.28 commissioner submits a negative review and comment for a 164.29 proposal according to section 121.15, the following steps must 164.30 be taken: 164.31 (1) the commissioner must notify the school board of the 164.32 proposed negative review and comment and schedule a public 164.33 meeting within 60 days of the notification within that school 164.34 district to discuss the proposed negative review and comment on 164.35 the school facility; and 164.36 (2) the school board shall appoint an advisory task force 165.1 of up to five members to advise the school board and the 165.2 commissioner on the advantages, disadvantages, and alternatives 165.3 to the proposed facility at the public meeting. One member of 165.4 the advisory task force must also be a member of the county 165.5 facilities group. 165.6 (b) After attending the public meeting, the commissioner 165.7 shall reconsider the proposal. If the commissioner submits a 165.8 negative review and comment, the school board may appeal that 165.9 decisionto the state board of educationunder chapter 14.The165.10state board of education may either uphold the commissioner's165.11negative review and comment or instruct the commissioner to165.12submit a positive or unfavorable review and comment on the165.13proposed facility.165.14 (c) A school board may not proceed with construction ifthe165.15state board of education upholdsthe commissioner's negative 165.16 review and comment is upheld or if the commissioner's negative 165.17 review and comment is not appealed. 165.18 Sec. 35. Minnesota Statutes 1996, section 121.16, is 165.19 amended by adding a subdivision to read: 165.20 Subd. 4. [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The 165.21 commissioner of children, families, and learning shall prepare a 165.22 uniform system of records for public schools and require reports 165.23 from superintendents and principals of schools, teachers, school 165.24 officers, and the chief officers of public and other educational 165.25 institutions to give such facts as it may deem of public value. 165.26 All reports required of school districts by the commissioner 165.27 shall be in conformance with the uniform financial accounting 165.28 and reporting system. With the cooperation of the state 165.29 auditor, the commissioner shall establish and carry into effect 165.30 a uniform system of accounting by public school officers and 165.31 shall have authority to supervise and examine the accounts and 165.32 other records of all public schools. 165.33 Sec. 36. Minnesota Statutes 1996, section 121.16, is 165.34 amended by adding a subdivision to read: 165.35 Subd. 5. [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 165.36 The commissioner of children, families, and learning shall adopt 166.1 goals for and exercise general supervision over public schools 166.2 and public educational agencies in the state, classify and 166.3 standardize public elementary and secondary schools, and prepare 166.4 for them outlines and suggested courses of study. The 166.5 commissioner shall develop a plan to attain the adopted goals. 166.6 The commissioner may recognize educational accrediting agencies 166.7 for the sole purposes of sections 120.101, 120.102, and 120.103. 166.8 Sec. 37. Minnesota Statutes 1996, section 121.16, is 166.9 amended by adding a subdivision to read: 166.10 Subd. 6. [ADMINISTRATIVE RULES.] The commissioner may 166.11 adopt new rules and amend them or amend any existing rules only 166.12 under specific authority. The commissioner may repeal any 166.13 existing rules. Notwithstanding the provisions of section 166.14 14.05, subdivision 4, the commissioner may grant a variance to 166.15 rules adopted by the commissioner upon application by a school 166.16 district for purposes of implementing experimental programs in 166.17 learning or school management. This subdivision shall not 166.18 prohibit the commissioner from making technical changes or 166.19 corrections to adopted rules. 166.20 Sec. 38. Minnesota Statutes 1996, section 121.16, is 166.21 amended by adding a subdivision to read: 166.22 Subd. 7. [LICENSURE RULES.] The commissioner may make 166.23 rules relating to licensure of school personnel not licensed by 166.24 the board of teaching. 166.25 Sec. 39. Minnesota Statutes 1996, section 121.16, is 166.26 amended by adding a subdivision to read: 166.27 Subd. 8. [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The 166.28 commissioner may amend rules to reflect changes in the national 166.29 minimum standard score for passing the general education 166.30 development (GED) tests. 166.31 Sec. 40. Minnesota Statutes 1996, section 121.16, is 166.32 amended by adding a subdivision to read: 166.33 Subd. 9. [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 166.34 request of any superintendent of any public or private school 166.35 teaching high school courses in the state, the commissioner 166.36 shall designate or prepare uniform forms for state examinations 167.1 in each high school subject during the month of May of each 167.2 year; the request shall be in writing and delivered to the 167.3 commissioner before January 1 of that year. 167.4 Sec. 41. Minnesota Statutes 1996, section 121.16, is 167.5 amended by adding a subdivision to read: 167.6 Subd. 10. [EVENING SCHOOLS.] The commissioner shall 167.7 exercise general supervision over the public evening schools, 167.8 adult education programs, and summer programs. 167.9 Sec. 42. Minnesota Statutes 1996, section 121.16, is 167.10 amended by adding a subdivision to read: 167.11 Subd. 11. [TEACHER RULE VARIANCES.] Notwithstanding any 167.12 law to the contrary, and only upon receiving the agreement of 167.13 the state board of teaching, the commissioner of children, 167.14 families, and learning may grant a variance to rules governing 167.15 licensure of teachers for those teachers licensed by the board 167.16 of teaching. The commissioner may grant a variance, without the 167.17 agreement of the board of teaching, to rules adopted by the 167.18 commissioner governing licensure of teachers for those teachers 167.19 the commissioner licenses. 167.20 Sec. 43. Minnesota Statutes 1996, section 121.16, is 167.21 amended by adding a subdivision to read: 167.22 Subd. 12. [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The 167.23 commissioner of finance shall establish for the commissioner of 167.24 children, families, and learning a revolving fund for deposit of 167.25 storage and handling charges paid by recipients of donated foods 167.26 shipped by the school lunch section of the department of 167.27 children, families, and learning. These funds are to be used 167.28 only to pay storage and related charges as they are incurred for 167.29 United States Department of Agriculture foods. 167.30 The commissioner of finance shall also establish a 167.31 revolving fund for the department of children, families, and 167.32 learning to deposit charges paid by recipients of processed 167.33 commodities and for any authorized appropriation transfers for 167.34 the purpose of this subdivision. These funds are to be used 167.35 only to pay for commodity processing and related charges as they 167.36 are incurred using United States Department of Agriculture 168.1 donated commodities. 168.2 Sec. 44. Minnesota Statutes 1996, section 121.1601, 168.3 subdivision 2, is amended to read: 168.4 Subd. 2. [COORDINATION.]The commissioner shall coordinate168.5the office activities under subdivision 1 with new or existing168.6department and state board of education efforts to accomplish168.7school desegregation/integration.The commissioner may request 168.8 information or assistance from, or contract with, any state or 168.9 local agency or officer, local unit of government, or recognized 168.10 expert to assist the commissioner in performing the activities 168.11 described in subdivision 1. 168.12 Sec. 45. Minnesota Statutes 1996, section 121.612, 168.13 subdivision 2, is amended to read: 168.14 Subd. 2. [CREATION OF FOUNDATION.] There is created the 168.15 Minnesota academic excellence foundation. The purpose of the 168.16 foundation shall be to promote academic excellence in Minnesota 168.17 public and nonpublic schools and communities through 168.18 public-private partnerships. The foundation shall be a 168.19 nonprofit organization. The board of directors of the 168.20 foundation and foundation activities are under the direction of 168.21 thestate board of educationcommissioner of children, families, 168.22 and learning. 168.23 Sec. 46. Minnesota Statutes 1996, section 121.612, 168.24 subdivision 3, is amended to read: 168.25 Subd. 3. [BOARD OF DIRECTORS.] The board of directors of 168.26 the foundation shall consist of the commissioner of children, 168.27 families, and learning,a member of the state board of education168.28selected by the state boardwho shall serve as chair and 20 168.29 members to be appointed by the governor. Of the 20 members 168.30 appointed by the governor, eight shall represent a variety of 168.31 education groups and 12 shall represent a variety of business 168.32 groups. The commissioner of children, families, and learning 168.33 shall serve as secretary for the board of directors and provide 168.34 administrative support to the foundation. An executive 168.35 committee of the foundation board composed of the board officers 168.36 and chairs of board committees, may only advise and make 169.1 recommendations to the foundation board. 169.2 Sec. 47. Minnesota Statutes 1996, section 121.612, 169.3 subdivision 6, is amended to read: 169.4 Subd. 6. [CONTRACTS.] The foundation board shall review 169.5 and approve each contract of the board. Each contract of the 169.6 foundation board shall be subject to the same review and 169.7 approval procedures as a contract of thestate board of169.8educationcommissioner of children, families, and learning. 169.9 Sec. 48. Minnesota Statutes 1996, section 121.612, 169.10 subdivision 7, is amended to read: 169.11 Subd. 7. [FOUNDATION STAFF.] (a) Thestate board169.12 commissioner shall appoint the executive director and other 169.13 staff who shall perform duties and have responsibilities solely 169.14 related to the foundation. 169.15 (b) As part of the annual plan of work, the foundation, 169.16 under the direction of thestate boardcommissioner, may appoint 169.17 up to three employees. The employees appointed under this 169.18 paragraph are not state employees under chapter 43A, but are 169.19 covered under section 3.736. At the foundation board's 169.20 discretion, the employees may participate in the state health 169.21 and state insurance plans for employees in unclassified 169.22 service. The employees shall be supervised by the executive 169.23 director. 169.24 Sec. 49. Minnesota Statutes 1996, section 121.612, 169.25 subdivision 9, is amended to read: 169.26 Subd. 9. [REPORT.] The board of directors of the 169.27 foundation shall submit an annual report to thestate board of169.28educationcommissioner of children, families, and learning on 169.29 the progress of its activities. The annual report shall contain 169.30 a financial report for the preceding year, including all 169.31 receipts and expenditures of the foundation. 169.32 Sec. 50. Minnesota Statutes 1997 Supplement, section 169.33 121.615, subdivision 2, is amended to read: 169.34 Subd. 2. [CREATION OF FOUNDATION.] There is created the 169.35 Minnesota school-to-work student organization foundation. The 169.36 purpose of the foundation shall be to promote vocational student 170.1 organizations and applied leadership opportunities in Minnesota 170.2 public and nonpublic schools through public-private 170.3 partnerships. The foundation shall be a nonprofit 170.4 organization. The board of directors of the foundation and 170.5 activities of the foundation are under the direction of the 170.6state board of educationcommissioner of children, families, and 170.7 learning. 170.8 Sec. 51. Minnesota Statutes 1997 Supplement, section 170.9 121.615, subdivision 6, is amended to read: 170.10 Subd. 6. [CONTRACTS.] The foundation board shall review 170.11 and approve each contract of the board. Each contract of the 170.12 foundation board shall be subject to the same review and 170.13 approval procedures as a contract of thestate board of170.14educationcommissioner of children, families, and learning. 170.15 Sec. 52. Minnesota Statutes 1997 Supplement, section 170.16 121.615, subdivision 7, is amended to read: 170.17 Subd. 7. [FOUNDATION STAFF.] Thestate board of170.18educationcommissioner of children, families, and learning shall 170.19 appoint the executive director of the foundation from three 170.20 candidates nominated and submitted by the foundation board of 170.21 directors and, as necessary, other staff who shall perform 170.22 duties and have responsibilities solely related to the 170.23 foundation. The employees appointed are not state employees 170.24 under chapter 43A, but are covered under section 3.736. The 170.25 employees may participate in the state health and state 170.26 insurance plans for employees in unclassified service. The 170.27 employees shall be supervised by the executive director. 170.28 The commissioner shall appoint from the office of lifework 170.29 development a liaison to the foundation board. 170.30 Sec. 53. Minnesota Statutes 1997 Supplement, section 170.31 121.615, subdivision 10, is amended to read: 170.32 Subd. 10. [REPORT.] The board of directors of the 170.33 foundation shall submit an annual report on the progress of its 170.34 activities to thestate board of educationcommissioner of 170.35 children, families, and learning and to the board of trustees of 170.36 the Minnesota state colleges and universities. The annual 171.1 report shall contain a financial report for the preceding year. 171.2 The foundation shall submit a biennium report to the legislature 171.3 before February 15, in the odd-numbered year. 171.4 Sec. 54. Minnesota Statutes 1996, section 121.932, 171.5 subdivision 5, is amended to read: 171.6 Subd. 5. [ESSENTIAL DATA.] The department shall maintain a 171.7 list of essential data elements which must be recorded and 171.8 stored about each pupil, licensed and nonlicensed staff member, 171.9 and educational program. Each school district must request the 171.10 social security number on each student as part of the basic 171.11 student enrollment and must include it as one of the essential 171.12 data elements. Each school district must provide the essential 171.13 data to the department in the form and format prescribed by the 171.14 department. 171.15 Sec. 55. Minnesota Statutes 1996, section 122.23, 171.16 subdivision 2b, is amended to read: 171.17 Subd. 2b. [ORDERLY REDUCTION PLAN.] As part of the 171.18 resolution required by subdivision 2, the school board must 171.19 prepare a plan for the orderly reduction of the membership of 171.20 the board to six or seven members and a plan for the 171.21 establishment or dissolution of election districts. The plan 171.22 may shorten any or all terms of incumbent board members to 171.23 achieve the orderly reduction. The plan must be submitted to 171.24 the secretary of state for review and comment. 171.25 Sec. 56. Minnesota Statutes 1996, section 122.23, 171.26 subdivision 6, is amended to read: 171.27 Subd. 6. The commissioner shall, upon receipt of a plat, 171.28 forthwith examine it and approve, modify or reject it. The 171.29 commissioner shall also approve or reject any proposal contained 171.30 in the resolution or petition regarding the disposition of the 171.31 bonded debt of the component districts. If the plat shows the 171.32 boundaries of proposed separate election districts and if the 171.33 commissioner modifies the plat, the commissioner shall also 171.34 modify the boundaries of the proposed separate election 171.35 districts. The commissioner shall conduct ahearingpublic 171.36 meeting at the nearest county seat in the area upon reasonable 172.1 notice to the affected districts and county boards if requested 172.2 within 20 days after submission of the plat.Such a hearingThe 172.3 public meeting may be requested by the board of any affected 172.4 district, a county board of commissioners, or the petition of 20 172.5 resident voters living within the area proposed for 172.6 consolidation. The commissioner shall endorse on the plat 172.7 action regarding any proposal for the disposition of the bonded 172.8 debt of component districts and the reasons for these actions 172.9 andwithinafter a minimum of 20 days, but no more than 60 days 172.10 of the date of the receipt of the plat, the commissioner shall 172.11 return it to the county auditor who submitted it. The 172.12 commissioner shall furnish a copy of that plat, and the 172.13 supporting statement and its endorsement to the auditor of each 172.14 county containing any land area of the proposed new district. 172.15 If land area of a particular county was included in the plat, as 172.16 submitted by the county auditor, and all of such land area is 172.17 excluded in the plat as modified and approved, the commissioner 172.18 shall also furnish a copy of the modified plat, supporting 172.19 statement, and any endorsement to the auditor of such county. 172.20 Sec. 57. Minnesota Statutes 1996, section 123.34, 172.21 subdivision 9, is amended to read: 172.22 Subd. 9. [SUPERINTENDENT.] All districts maintaining a 172.23 classified secondary school shall employ a superintendent who 172.24 shall be an ex officio nonvoting member of the school board. 172.25 The authority for selection and employment of a superintendent 172.26 shall be vested in the school board in all cases. An individual 172.27 employed by a school board as a superintendent shall have an 172.28 initial employment contract for a period of time no longer than 172.29 three years from the date of employment. Any subsequent 172.30 employment contract must not exceed a period of three years. A 172.31 school board, at its discretion, may or may not renew an 172.32 employment contract. A school board shall not, by action or 172.33 inaction, extend the duration of an existing employment 172.34 contract. Beginning 365 days prior to the expiration date of an 172.35 existing employment contract, a school board may negotiate and 172.36 enter into a subsequent employment contract to take effect upon 173.1 the expiration of the existing contract. A subsequent contract 173.2 shall be contingent upon the employee completing the terms of an 173.3 existing contract. If a contract between a school board and a 173.4 superintendent is terminated prior to the date specified in the 173.5 contract, the school board may not enter into another 173.6 superintendent contract with that same individual that has a 173.7 term that extends beyond the date specified in the terminated 173.8 contract. A school board may terminate a superintendent during 173.9 the term of an employment contract for any of the grounds 173.10 specified in section 125.12, subdivision 6 or 8. A 173.11 superintendent shall not rely upon an employment contract with a 173.12 school board to assert any other continuing contract rights in 173.13 the position of superintendent under section 125.12. 173.14 Notwithstanding the provisions of sections 122.532, 122.541, 173.15 125.12, subdivision 6a or 6b, or any other law to the contrary, 173.16 no individual shall have a right to employment as a 173.17 superintendent based on order of employment in any district. If 173.18 two or more school districts enter into an agreement for the 173.19 purchase or sharing of the services of a superintendent, the 173.20 contracting districts have the absolute right to select one of 173.21 the individuals employed to serve as superintendent in one of 173.22 the contracting districts and no individual has a right to 173.23 employment as the superintendent to provide all or part of the 173.24 services based on order of employment in a contracting district. 173.25 The superintendent of a district shall perform the following: 173.26 (1) visit and supervise the schools in the district, report 173.27 and make recommendations about their condition when advisable or 173.28 on request by the board; 173.29 (2) recommend to the board employment and dismissal of 173.30 teachers; 173.31 (3) superintend school grading practices and examinations 173.32 for promotions; 173.33 (4) make reports required by the commissioner of children, 173.34 families, and learning;and173.35 (5) by January 10, submit an annual report to the 173.36 commissioner in a manner prescribed by the commissioner, in 174.1 consultation with school districts, identifying the amount of 174.2 funding that the district requires to achieve a 90 percent 174.3 student passage rate on the basic standards test taken in the 174.4 eighth grade, and how much the district is cross-subsidizing 174.5 programs with special education, compensatory, and general 174.6 education revenue; and 174.7 (6) perform other duties prescribed by the board. 174.8 Sec. 58. Minnesota Statutes 1996, section 123.35, 174.9 subdivision 19a, is amended to read: 174.10 Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL 174.11 SUPPORT.] (a) No school district shall be required by any type 174.12 of formal or informal agreement except an agreement to provide 174.13 building space according to paragraph (f), including a joint 174.14 powers agreement, or membership in any cooperative unit defined 174.15 in subdivision 19b, paragraph (d), to participate in or provide 174.16 financial support for the purposes of the agreement for a time 174.17 period in excess ofonefour fiscalyearyears, or the time 174.18 period set forth in this subdivision. Any agreement, part of an 174.19 agreement, or other type of requirement to the contrary is void. 174.20 (b) This subdivision shall not affect the continued 174.21 liability of a school district for its share of bonded 174.22 indebtedness or other debt incurred as a result of any agreement 174.23 before July 1, 1993. The school district is liable only until 174.24 the obligation or debt is discharged and only according to the 174.25 payment schedule in effect on July 1, 1993, except that the 174.26 payment schedule may be altered for the purpose of restructuring 174.27 debt or refunding bonds outstanding on July 1, 1993, if the 174.28 annual payments of the school district are not increased and if 174.29 the total obligation of the school district for its share of 174.30 outstanding bonds or other debt is not increased. 174.31 (c) To cease participating in or providing financial 174.32 support for any of the services or activities relating to the 174.33 agreement or to terminate participation in the agreement, the 174.34 school board shall adopt a resolution and notify other parties 174.35 to the agreement of its decision on or before February 1 of any 174.36 year. The cessation or withdrawal shall be effective June 30 of 175.1 the same year except that for a member of an education district 175.2 organized under sections 122.91 to 122.95 or an intermediate 175.3 district organized under chapter 136D, cessation or withdrawal 175.4 shall be effective June 30 of the following fiscal year. At the 175.5 option of the school board, cessation or withdrawal may be 175.6 effective June 30 of the following fiscal year for a district 175.7 participating in any type of agreement. 175.8 (d) Before issuing bonds or incurring other debt, the 175.9 governing body responsible for implementing the agreement shall 175.10 adopt a resolution proposing to issue bonds or incur other debt 175.11 and the proposed financial effect of the bonds or other debt 175.12 upon each participating district. The resolution shall be 175.13 adopted within a time sufficient to allow the school board to 175.14 adopt a resolution within the time permitted by this paragraph 175.15 and to comply with the statutory deadlines set forth in sections 175.16 122.895, 125.12, and 125.17. The governing body responsible for 175.17 implementing the agreement shall notify each participating 175.18 school board of the contents of the resolution. Within 120 days 175.19 of receiving the resolution of the governing body, the school 175.20 board of the participating district shall adopt a resolution 175.21 stating: 175.22 (1) its concurrence with issuing bonds or incurring other 175.23 debt; 175.24 (2) its intention to cease participating in or providing 175.25 financial support for the service or activity related to the 175.26 bonds or other debt; or 175.27 (3) its intention to terminate participation in the 175.28 agreement. 175.29 A school board adopting a resolution according to clause 175.30 (1) is liable for its share of bonded indebtedness or other debt 175.31 as proposed by the governing body implementing the agreement. A 175.32 school board adopting a resolution according to clause (2) is 175.33 not liable for the bonded indebtedness or other debt, as 175.34 proposed by the governing body, related to the services or 175.35 activities in which the district ceases participating or 175.36 providing financial support. A school board adopting a 176.1 resolution according to clause (3) is not liable for the bonded 176.2 indebtedness or other debt proposed by the governing body 176.3 implementing the agreement. 176.4 (e) After July 1, 1993, a district is liable according to 176.5 paragraph (d) for its share of bonded indebtedness or other debt 176.6 incurred by the governing body implementing the agreement to the 176.7 extent that the bonds or other debt are directly related to the 176.8 services or activities in which the district participates or for 176.9 which the district provides financial support. The district has 176.10 continued liability only until the obligation or debt is 176.11 discharged and only according to the payment schedule in effect 176.12 at the time the governing body implementing the agreement 176.13 provides notice to the school board, except that the payment 176.14 schedule may be altered for the purpose of refunding the 176.15 outstanding bonds or restructuring other debt if the annual 176.16 payments of the district are not increased and if the total 176.17 obligation of the district for the outstanding bonds or other 176.18 debt is not increased. 176.19 (f) A school district that is a member of a cooperative 176.20 unit as defined in subdivision 19b, paragraph (d), may obligate 176.21 itself to participate in and provide financial support for an 176.22 agreement with a cooperative unit to provide school building 176.23 space for a term not to exceed two years with an option on the 176.24 part of the district to renew for an additional two years. 176.25 Sec. 59. Minnesota Statutes 1996, section 123.3514, is 176.26 amended by adding a subdivision to read: 176.27 Subd. 4f. [PARTICIPATION IN HIGH SCHOOL 176.28 ACTIVITIES.] Enrolling in a course under this section shall not, 176.29 by itself, prohibit a pupil from participating in activities 176.30 sponsored by the pupil's high school. 176.31 Sec. 60. Minnesota Statutes 1996, section 123.39, 176.32 subdivision 1, is amended to read: 176.33 Subdivision 1. The board may provide for the 176.34 transportation of pupils to and from school and for any other 176.35 purpose. The board may also provide for the transportation of 176.36 pupils to schools in other districts for grades and departments 177.1 not maintained in the district, including high school, at the 177.2 expense of the district, when funds are available therefor and 177.3 if agreeable to the district to which it is proposed to 177.4 transport the pupils, for the whole or a part of the school 177.5 year, as it may deem advisable, and subject to its rules. In 177.6 any school district, the board shall arrange for the attendance 177.7 of all pupils living two miles or more from the school, except 177.8 pupils whose transportation privileges have been revoked under 177.9 section 123.805, subdivision 1, clause (6), or 123.7991, 177.10 paragraph (b), or whose privileges have been voluntarily 177.11 surrendered under subdivision 1a, through suitable provision for 177.12 transportation or through the boarding and rooming of the pupils 177.13 who may be more economically and conveniently provided for by 177.14 that means. Arrangements for attendance may include a 177.15 requirement that parents or guardians request transportation 177.16 before it is provided. The board shall provide transportation 177.17 to and from the home of a child with a disability not yet 177.18 enrolled in kindergarten when special instruction and services 177.19 under sections 120.17 and 120.1701 are provided in a location 177.20 other than in the child's home. When transportation is 177.21 provided, scheduling of routes, establishment of the location of 177.22 bus stops, manner and method of transportation, control and 177.23 discipline of school children and any other matter relating 177.24 thereto shall be within the sole discretion, control, and 177.25 management of the school board. The district may provide for 177.26 the transportation of pupils or expend a reasonable amount for 177.27 room and board of pupils whose attendance at school can more 177.28 economically and conveniently be provided for by that means or 177.29 who attend school in a building rented or leased by a district 177.30 within the confines of an adjacent district. 177.31 Sec. 61. Minnesota Statutes 1996, section 123.39, is 177.32 amended by adding a subdivision to read: 177.33 Subd. 1a. [VOLUNTARY SURRENDER OF TRANSPORTATION 177.34 PRIVILEGES.] The parent or guardian of a secondary student may 177.35 voluntarily surrender the secondary student's to and from school 177.36 transportation privileges granted under subdivision 1, in 178.1 exchange for the privilege of obtaining school parking at a 178.2 reduced price. 178.3 Sec. 62. Minnesota Statutes 1996, section 123.805, 178.4 subdivision 1, is amended to read: 178.5 Subdivision 1. [COMPREHENSIVE POLICY.] Each school 178.6 district shall develop and implement a comprehensive, written 178.7 policy governing pupil transportation safety, including 178.8 transportation of nonpublic school students, when applicable. 178.9 The policy shall, at minimum, contain: 178.10 (1) provisions for appropriate student bus safety training 178.11 under section 123.7991; 178.12 (2) rules governing student conduct on school buses and in 178.13 school bus loading and unloading areas; 178.14 (3) a statement of parent or guardian responsibilities 178.15 relating to school bus safety; 178.16 (4) provisions for notifying students and parents or 178.17 guardians of their responsibilities and the rules; 178.18 (5) an intradistrict system for reporting school bus 178.19 accidents or misconduct,and a system for dealing with local law 178.20 enforcement officials in cases of criminal conduct on a school 178.21 bus, and a system for reporting accidents, crimes, incidents of178.22misconduct, and bus driver dismissals to the department of178.23public safety under section 169.452; 178.24 (6) a discipline policy to address violations of school bus 178.25 safety rules, including procedures for revoking a student's bus 178.26 riding privileges in cases of serious or repeated misconduct; 178.27 (7) a system for integrating school bus misconduct records 178.28 with other discipline records; 178.29 (8) a statement of bus driver duties; 178.30 (9) planned expenditures for safety activities under 178.31 section 123.799 and, where applicable, provisions governing bus 178.32 monitor qualifications, training, and duties; 178.33 (10) rules governing the use and maintenance of type III 178.34 vehicles, drivers of type III vehicles, qualifications to drive 178.35 a type III vehicle, qualifications for a type III vehicle and 178.36 the circumstances under which a student may be transported in a 179.1 type III vehicle; 179.2 (11) operating rules and procedures; 179.3 (12) provisions for annual bus driver in-service training 179.4 and evaluation; 179.5 (13) emergency procedures; 179.6 (14) a system for maintaining and inspecting equipment; 179.7 (15) requirements of the school district, if any, that 179.8 exceed state law minimum requirements for school bus operations; 179.9 and 179.10 (16) requirements for basic first aid training, which shall 179.11 include the Heimlich maneuver and procedures for dealing with 179.12 obstructed airways, shock, bleeding, and seizures. 179.13 School districts are encouraged to use the model policy 179.14 developed by the Minnesota school boards association, the 179.15 department of public safety, and the department of children, 179.16 families, and learning, as well as the current edition of the 179.17 "National Standards for School Buses and Operations" published 179.18 by the National Safety Council, in developing safety policies. 179.19 Each district shall submit a copy of its policy under this 179.20 subdivision to the school bus safety advisory committee no later 179.21 than August 1, 1994. Each district shall review its policy 179.22 annually and make appropriate amendments, which must be 179.23 submitted to the school bus safety advisory committee within one 179.24 month of approval by the school board. 179.25 Sec. 63. Minnesota Statutes 1996, section 124.078, is 179.26 amended to read: 179.27 124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 179.28 A state permanent school fund advisory committee is 179.29 established to advise the department of natural resources on the 179.30 management of permanent school fund land, which is held in trust 179.31 for the school districts of the state. The advisory committee 179.32 shall consist of the following persons or their designees: the 179.33 chairs of the education committees of the legislature, the 179.34 chairs of the senate committee on finance and house committee on 179.35 ways and means, the chair of the senate environment and natural 179.36 resources committee, the chair of the senate environment and 180.1 agriculture budget division committee, the commissioner of 180.2 children, families, and learning, one superintendent from a 180.3 nonmetropolitan district, and one superintendent from a 180.4 metropolitan area district. The commissioner of natural 180.5 resources shall serve as an ex officio member. The school 180.6 district superintendents shall be appointed by the commissioner 180.7 of children, families, and learning. 180.8 The advisory committee shall review the policies of the 180.9 department of natural resources and current statutes on 180.10 management of school trust fund lands at least semiannually and 180.11 shall recommend necessary changes in statutes, policy, and 180.12 implementation in order to ensure provident utilization of the 180.13 permanent school fund lands. 180.14 Sec. 64. Minnesota Statutes 1996, section 124.225, 180.15 subdivision 7f, is amended to read: 180.16 Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 180.17 district shall reserve an amount equal to the greater of $500 or 180.18 $1.50 times the number of fund balance pupil units, for that 180.19 school year to provide student transportation safety programs 180.20 under section 123.799. This revenue may only be used if the 180.21 district complies with the reporting requirements of section 180.22 123.7991, 123.805,169.452,169.4582, or 171.321, subdivision 5. 180.23 Sec. 65. Minnesota Statutes 1996, section 124.225, 180.24 subdivision 8m, is amended to read: 180.25 Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's 180.26 transportation safety aid equals the district's reserved revenue 180.27 for transportation safety under subdivision 7f for that school 180.28 year. Failure of a school district to comply with the reporting 180.29 requirements of section 123.7991, 123.805,169.452,169.4582, or 180.30 171.321, subdivision 5, may result in a withholding of that 180.31 district's transportation safety aid for that school year. 180.32 Sec. 66. Minnesota Statutes 1996, section 124.646, 180.33 subdivision 4, is amended to read: 180.34 Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses 180.35 described in this subdivision must be recorded as provided in 180.36 this subdivision. 181.1 (b) In each school district, the expenses for a school food 181.2 service program for pupils must be attributed to a school food 181.3 service fund. Under a food service program, the school food 181.4 service may prepare or serve milk, meals, or snacks in 181.5 connection with school or community service activities. 181.6 (c) Revenues and expenditures for food service activities 181.7 must be recorded in the food service fund. The costs of 181.8 processing applications, accounting for meals, preparing and 181.9 serving food, providing kitchen custodial services, and other 181.10 expenses involving the preparing of meals or the kitchen section 181.11 of the lunchroom may be charged to the food service fund or to 181.12 the general fund of the district. The costs of lunchroom 181.13 supervision, lunchroom custodial services, lunchroom utilities, 181.14 and other administrative costs of the food service program must 181.15 be charged to the general fund. 181.16 That portion of superintendent and fiscal manager costs 181.17 that can be documented as attributable to the food service 181.18 program may be charged to the food service fund provided that 181.19 the school district does not employ or contract with a food 181.20 service director or other individual who manages the food 181.21 service program, or food service management company. If the 181.22 cost of the superintendent or fiscal manager is charged to the 181.23 food service fund, the charge must be at a wage rate not to 181.24 exceed the statewide average for food service directors as 181.25 determined by the department of children, families, and learning. 181.26 (d) Capital expenditures for the purchase of food service 181.27 equipment must be made from thecapitalgeneral fund and not the 181.28 food service fund, unless two conditions apply: 181.29 (1) the unreserved balance in the food service fund at the 181.30 end of the last fiscal year is greater than the cost of the 181.31 equipment to be purchased; and 181.32 (2) the department of children, families, and learning has 181.33 approved the purchase of the equipment. 181.34 (e) If the two conditions set out in paragraph (d) apply, 181.35 the equipment may be purchased from the food service fund. 181.36 (f) If a deficit in the food service fund exists at the end 182.1 of a fiscal year, and the deficit is not eliminated by revenues 182.2 from food service operations in the next fiscal year, then the 182.3 deficit must be eliminated by a permanent fund transfer from the 182.4 general fund at the end of that second fiscal year. However, if 182.5 a district contracts with a food service management company 182.6 during the period in which the deficit has accrued, the deficit 182.7 must be eliminated by a payment from the food service management 182.8 company. 182.9 (g) Notwithstanding paragraph (f), a district may incur a 182.10 deficit in the food service fund for up to three years without 182.11 making the permanent transfer if the district submits to the 182.12 commissioner by January 1 of the second fiscal year a plan for 182.13 eliminating that deficit at the end of the third fiscal year. 182.14 (h) If a surplus in the food service fund exists at the end 182.15 of a fiscal year for three successive years, a district may 182.16 recode for that fiscal year the costs of lunchroom supervision, 182.17 lunchroom custodial services, lunchroom utilities, and other 182.18 administrative costs of the food service program charged to the 182.19 general fund according to paragraph (c) and charge those costs 182.20 to the food service fund in a total amount not to exceed the 182.21 amount of surplus in the food service fund. 182.22 Sec. 67. Minnesota Statutes 1997 Supplement, section 182.23 124.6475, is amended to read: 182.24 124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 182.25 States funds are available to compensate 182.26 department-approved summer food program sponsors for reduced 182.27 federal operating reimbursement rates under Public Law Number 182.28 104-193, the federal summer food service program. A sponsor is 182.29 eligible for summer food service replacement aid equal to the 182.30 sum of the following amounts: 182.31 (1) for breakfast service,subtract the current year182.32maximum reimbursement rate from the 1996 maximum reimbursement182.33rate and multiply the result by the number of breakfasts the182.34district servedup to four cents per breakfast served by the 182.35 sponsor during the currentschoolprogram year; 182.36 (2) for lunch or supper service,subtract the current year183.1maximum reimbursement rate from the 1996 maximum reimbursement183.2rate and multiply the result by the number of lunches and183.3suppers the district servedup to 14 cents per lunch or supper 183.4 served by the sponsor during the currentschoolprogram year; 183.5 and 183.6 (3) for supplement service,subtract the current year183.7maximum reimbursement rate from the 1996 maximum reimbursement183.8rate and multiply the result by the number ofup to ten cents 183.9 per supplementmealsserved by thedistrict servedsponsor 183.10 during the currentschoolprogram year. 183.11 Sec. 68. Minnesota Statutes 1997 Supplement, section 183.12 124.648, subdivision 3, is amended to read: 183.13 Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 183.14 (a) The commissioner shall: 183.15 (1) encourage all districts to participate in the school 183.16 milk program for kindergartners; 183.17 (2) prepare program guidelines, not subject to chapter 14 183.18 until July 1, 1998, which will effectively and efficiently 183.19 distribute appropriated and donated money to participating 183.20 districts; and 183.21 (3) seek donations and matching funds from appropriate 183.22 private and public sources. 183.23 (b) Program guidelines may provide for disbursement to 183.24 districts through a mechanism of prepayments or by reimbursement 183.25 for approved program expenses. 183.26(c) It is suggested that the benefits of the school milk183.27program may reach the largest number of kindergarten students if183.28districts are allowed to submit annual bids stating the183.29per-serving level of support that would be acceptable to the183.30district for their participation in the program. The183.31commissioner would review all bids received and approve bids in183.32sufficient number and value to maximize the provision of milk to183.33kindergarten students consistent with available funds.183.34 Sec. 69. Minnesota Statutes 1997 Supplement, section 183.35 125.05, subdivision 1c, is amended to read: 183.36 Subd. 1c. [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 184.1 ETHICS.] Thestate board of educationcommissioner of children, 184.2 families, and learning shall issue licenses under its 184.3 jurisdiction to persons thestate boardcommissioner finds to be 184.4 qualified and competent for their respective positions under the 184.5 adopted rulesit adopts. Thestate board of education184.6 commissioner may develop, by rule, a code of ethics for 184.7 supervisory personnel covering standards of professional 184.8 practices, including areas of ethical conduct and professional 184.9 performance and methods of enforcement. 184.10 Sec. 70. Minnesota Statutes 1997 Supplement, section 184.11 125.05, subdivision 2, is amended to read: 184.12 Subd. 2. [EXPIRATION AND RENEWAL.] (a) Each license the 184.13 department of children, families, and learning issues through 184.14 its licensing section must bear the date of issue. Licenses 184.15 must expire and be renewed according to the respective rules the 184.16 board of teaching or thestate board of educationcommissioner 184.17 of children, families, and learning adopts. Requirements for 184.18 renewing a license must include showing satisfactory evidence of 184.19 successful teaching experience for at least one school year 184.20 during the period covered by the license in grades or subjects 184.21 for which the license is valid or completing such additional 184.22 preparation as the board of teaching prescribes. Thestate184.23board of educationcommissioner shall establish requirements for 184.24 renewing the licenses of supervisory personnel. 184.25 (b) The board of teaching shall offer alternative 184.26 continuing relicensure options for teachers who are accepted 184.27 into and complete the national board for professional teaching 184.28 standards certification process, and offer additional continuing 184.29 relicensure options for teachers who earn national board for 184.30 professional teaching standards certification. Continuing 184.31 relicensure requirements for teachers who do not maintain 184.32 national board for professional teaching standards certification 184.33 are those the board prescribes. 184.34 Sec. 71. Minnesota Statutes 1996, section 125.05, 184.35 subdivision 4, is amended to read: 184.36 Subd. 4. [HUMAN RELATIONS.] The board of teaching and 185.1 thestate board of educationcommissioner of children, families, 185.2 and learning shall accept training programs completed through 185.3 Peace Corps, VISTA, or Teacher Corps in lieu of completion of 185.4 the human relations component of the training program for 185.5 purposes of issuing or renewing a license in education. 185.6 Sec. 72. Minnesota Statutes 1996, section 125.05, 185.7 subdivision 8, is amended to read: 185.8 Subd. 8. [BACKGROUND CHECKS.] (a) The board of teaching 185.9 and thestate board of educationcommissioner of children, 185.10 families, and learning shall request a criminal history 185.11 background check from the superintendent of the bureau of 185.12 criminal apprehension on all applicants for initial licenses 185.13 under their jurisdiction. An application for a license under 185.14 this section must be accompanied by: 185.15 (1) an executed criminal history consent form, including 185.16 fingerprints; and 185.17 (2) a money order or cashier's check payable to the bureau 185.18 of criminal apprehension for the fee for conducting the criminal 185.19 history background check. 185.20 (b) The superintendent of the bureau of criminal 185.21 apprehension shall perform the background check required under 185.22 paragraph (a) by retrieving criminal history data maintained in 185.23 the criminal justice information system computers and shall also 185.24 conduct a search of the national criminal records repository, 185.25 including the criminal justice data communications network. The 185.26 superintendent is authorized to exchange fingerprints with the 185.27 Federal Bureau of Investigation for purposes of the criminal 185.28 history check. The superintendent shall recover the cost to the 185.29 bureau of a background check through the fee charged to the 185.30 applicant under paragraph (a). 185.31 (c) The board of teaching or thestate board of education185.32 commissioner of children, families, and learning may issue a 185.33 license pending completion of a background check under this 185.34 subdivision, but shall notify the individual that the 185.35 individual's license may be revoked based on the result of the 185.36 background check. 186.1 Sec. 73. Minnesota Statutes 1996, section 125.1885, 186.2 subdivision 1, is amended to read: 186.3 Subdivision 1. [REQUIREMENTS.] (a) A preparation program 186.4 that is an alternative to a graduate program in education 186.5 administration for public school administrators to acquire an 186.6 entrance license is established. The program may be offered in 186.7 any administrative field. 186.8 (b) To participate in the alternative preparation program, 186.9 the candidate must: 186.10 (1) have a master's degree in an administrative area; 186.11 (2) have been offered an administrative position in a 186.12 school district, group of districts, or an education district 186.13 approved by thestate board of educationcommissioner of 186.14 children, families, and learning to offer an alternative 186.15 preparation licensure program; 186.16 (3) have five years of experience in a field related to 186.17 administration; and 186.18 (4) document successful experiences working with children 186.19 and adults. 186.20 (c) An alternative preparation license is of one year 186.21 duration and is issued by thestate board of education186.22 commissioner of children, families, and learning to participants 186.23 on admission to the alternative preparation program. 186.24 Sec. 74. Minnesota Statutes 1996, section 125.1885, 186.25 subdivision 4, is amended to read: 186.26 Subd. 4. [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 186.27 resident mentorship team must prepare for thestate board of186.28educationcommissioner of children, families, and learning an 186.29 evaluation report on the performance of the alternative 186.30 preparation licensee during the school year and a positive or 186.31 negative recommendation on whether the alternative preparation 186.32 licensee shall receive a standard entrance license. 186.33 Sec. 75. Minnesota Statutes 1996, section 125.1885, 186.34 subdivision 5, is amended to read: 186.35 Subd. 5. [STANDARD ENTRANCE LICENSE.] Thestate board of186.36educationcommissioner of children, families, and learning shall 187.1 issue a standard entrance license to an alternative preparation 187.2 licensee who has successfully completed the school year in the 187.3 alternative preparation program and who has received a positive 187.4 recommendation from the licensee's mentorship team. 187.5 Sec. 76. Minnesota Statutes 1996, section 125.191, is 187.6 amended to read: 187.7 125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 187.8 Notwithstanding section 125.03, subdivision 1, a school 187.9 district may employ as a head varsity coach of an 187.10 interscholastic sport at its secondary school a person whodoes187.11not have a license as head varsity coach of interscholastic187.12sports and who does not have a bachelor's degree if: 187.13 (1) in the judgment of the school board,the personhas the 187.14 knowledge and experience necessary to coach the sport; 187.15 (2)the position has been posted as a vacancy within the187.16present teaching staff for a period of 30 days and no licensed187.17coaches have applied for the position;187.18(3) the personcan verify completion of six quarter 187.19 credits, or the equivalent, or 60 clock hours of instruction in 187.20 first aid and the care and prevention of athletic injuries; and 187.21(4) the person(3) can verify completion of a coaching 187.22 methods or theory course. 187.23 Notwithstanding section 125.121, a person employed as a 187.24 head varsity coach under this section has an annual contract as 187.25 a coach that the school board may or may not renew as the board 187.26 sees fit, after annually posting the position as required in187.27clause (2) and no licensed coach has applied for the position. 187.28 Sec. 77. Minnesota Statutes 1996, section 128A.02, 187.29 subdivision 1, is amended to read: 187.30 Subdivision 1. [TO GOVERNGOVERNANCE.] Thestateboard of 187.31educationthe Faribault academy shall govern the state academy 187.32 for the deaf and the state academy for the blind. The board 187.33 must promote academic standards based on high expectation and an 187.34 assessment system to measure academic performance toward the 187.35 achievement of those standards. The board must focus on the 187.36 academies' needs as a whole and not prefer one school over the 188.1 other. The board of the Faribault academies shall consist of 188.2 seven persons. The members of the board shall be appointed by 188.3 the governor with the advice and consent of the senate. Three 188.4 members must be from the seven-county metropolitan area, three 188.5 members must be from greater Minnesota, and one member may be 188.6 appointed at-large. The board must be composed of: 188.7 (1) one superintendent of an independent school district; 188.8 (2) one special education director; 188.9 (3) the commissioner of children, families, and learning or 188.10 the commissioner's designee; 188.11 (4) one member of the blind community; 188.12 (5) one member of the deaf community; and 188.13 (6) two members of the general public with business or 188.14 financial expertise. 188.15 Sec. 78. Minnesota Statutes 1996, section 128A.02, is 188.16 amended by adding a subdivision to read: 188.17 Subd. 1b. [TERMS; COMPENSATION; AND OTHER.] The membership 188.18 terms, compensation, removal of members, and filling of 188.19 vacancies shall be as provided for in section 15.0575. A member 188.20 may serve not more than two consecutive terms. 188.21 Sec. 79. Minnesota Statutes 1996, section 128A.02, is 188.22 amended by adding a subdivision to read: 188.23 Subd. 2b. [MEETINGS.] All meetings of the board shall be 188.24 as provided in section 471.705 and must be held in Faribault. 188.25 Sec. 80. Minnesota Statutes 1996, section 128A.02, 188.26 subdivision 3, is amended to read: 188.27 Subd. 3. [MOST BENEFICIAL, LEAST RESTRICTIVE.] Thestate188.28 board must do what is necessary to provide the most beneficial 188.29 and least restrictive program of education for each pupil at the 188.30 academies who is handicapped by visual disability or deafness. 188.31 Sec. 81. Minnesota Statutes 1996, section 128A.02, 188.32 subdivision 3b, is amended to read: 188.33 Subd. 3b. [PLANNING, EVALUATION, AND REPORTING.] To the 188.34 extent required in school districts, thestateboard must 188.35 establish a process for the academies to include parent and 188.36 community input in the planning, evaluation, and reporting of 189.1 curriculum and pupil achievement. 189.2 Sec. 82. Minnesota Statutes 1996, section 128A.02, 189.3 subdivision 5, is amended to read: 189.4 Subd. 5. [SITE COUNCILS.] Thestateboard may establish, 189.5 and appoint members to, a site council at each academy. The 189.6 site councils shall exercise power and authority granted by 189.7 thestateboard. Thestateboard must appoint to each site 189.8 council the exclusive representative's employee designee from 189.9 each exclusive representative at the academies. 189.10 Sec. 83. Minnesota Statutes 1996, section 128A.02, 189.11 subdivision 6, is amended to read: 189.12 Subd. 6. [TRUSTEE OF ACADEMIES' PROPERTY.] Thestateboard 189.13 is the trustee of the academies' property. Securities and 189.14 money, including income from the property, must be deposited in 189.15 the state treasury according to section 16A.275. The deposits 189.16 are subject to the order of thestateboard. 189.17 Sec. 84. Minnesota Statutes 1997 Supplement, section 189.18 128A.02, subdivision 7, is amended to read: 189.19 Subd. 7. [GRANTS.] Thestateboard, through the chief 189.20 administrators of the academies, may apply for all competitive 189.21 grants administered by agencies of the state and other 189.22 government or nongovernment sources. Application may not be 189.23 made for grants over which the board has discretion. 189.24 Sec. 85. Minnesota Statutes 1996, section 128A.022, is 189.25 amended to read: 189.26 128A.022 [POWERS OFSTATEBOARD OFEDUCATIONTHE FARIBAULT 189.27 ACADEMIES.] 189.28 Subdivision 1. [PERSONNEL.] Thestateboardof education189.29 of the Faribault academies may employ central administrative 189.30 staff members and other personnel necessary to provide and 189.31 support programs and services at each academy. 189.32 Subd. 2. [GET HELP FROM DEPARTMENT.] Thestateboard of 189.33 the Faribault academies may require the department of children, 189.34 families, and learning to provide program leadership, program 189.35 monitoring, and technical assistance at the academies. 189.36 Subd. 3. [UNCLASSIFIED POSITIONS.] Thestateboard of the 190.1 Faribault academies may place any position other than 190.2 residential academies administrator in the unclassified 190.3 service. The position must meet the criteria in section 43A.08, 190.4 subdivision 1a. 190.5 Subd. 4. [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 190.6 Thestateboard of the Faribault academies may enter into 190.7 agreements with public or private agencies or institutions to 190.8 provide residential and building maintenance services. 190.9 Thestateboard of the Faribault academies must first decide 190.10 that contracting for the services is more efficient and less 190.11 expensive than not contracting for them. 190.12 Subd. 6. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 190.13 Thestateboard of the Faribault academies may enter into 190.14 agreements with teacher preparation institutions for student 190.15 teachers to get practical experience at the academies. A 190.16 licensed teacher must provide appropriate supervision of each 190.17 student teacher. 190.18 (b) Thestateboard of the Faribault academies may enter 190.19 into agreements with accredited higher education institutions 190.20 for certain student trainees to get practical experience at the 190.21 academies. The students must be preparing themselves in a 190.22 professional field that provides special services to children 190.23 with a disability in school programs. To be a student trainee 190.24 in a field, a person must have completed at least two years of 190.25 an approved program in the field. A person who is licensed or 190.26 registered in the field must provide appropriate supervision of 190.27 each student trainee. 190.28 Sec. 86. Minnesota Statutes 1996, section 128A.023, 190.29 subdivision 1, is amended to read: 190.30 Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND 190.31 LEARNING.] The department of children, families, and learning 190.32 must assist thestateboard ofeducationthe Faribault academies 190.33 in preparing reports on the academies. 190.34 Sec. 87. Minnesota Statutes 1996, section 128A.023, 190.35 subdivision 2, is amended to read: 190.36 Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] The 191.1 department of employee relations, in cooperation with thestate191.2 board ofeducationthe Faribault academies, must develop a 191.3 statement of necessary qualifications and skills for all staff 191.4 members of the academies. 191.5 Sec. 88. Minnesota Statutes 1996, section 128A.026, 191.6 subdivision 1, is amended to read: 191.7 Subdivision 1. [SUBJECTS.] Thestateboard ofeducation191.8 the Faribault academies must establish procedures for: 191.9 (1) admission, including short-term admission, to the 191.10 academies; 191.11 (2) discharge from the academies; 191.12 (3) decisions on a pupil's program at the academies; and 191.13 (4) evaluation of a pupil's progress at the academies. 191.14 Sec. 89. Minnesota Statutes 1996, section 128A.026, 191.15 subdivision 3, is amended to read: 191.16 Subd. 3. [NOT CONTESTED CASE.] A proceeding about 191.17 admission to or discharge from the academies or about a pupil's 191.18 program or progress at the academies is not a contested case 191.19 under section 14.02. The proceeding is governed instead by the 191.20 rulesof the state boardgoverning special education. 191.21 Sec. 90. Minnesota Statutes 1996, section 128A.07, 191.22 subdivision 2, is amended to read: 191.23 Subd. 2. [LOCAL SOCIAL SERVICES AGENCY.] If the person 191.24 liable for support of a pupil cannot support the pupil, the 191.25 local social services agency of the county of the pupil's 191.26 residence must do so. The commissioner of children, families, 191.27 and learning must decide how much the local social services 191.28 agency must pay. Thestateboard ofeducationthe Faribault 191.29 academies must adopt rules that tell how the commissioner is to 191.30 fix the amount. The local social services agency must make the 191.31 payment to the superintendent of the school district of 191.32 residence. 191.33 Sec. 91. Minnesota Statutes 1997 Supplement, section 191.34 169.01, subdivision 6, is amended to read: 191.35 Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle 191.36 used to transport pupils to or from a school defined in section 192.1 120.101, or to or from school-related activities, by the school 192.2 or a school district, or by someone under an agreement with the 192.3 school or a school district. A school bus does not include a 192.4 motor vehicle transporting children to or from school for which 192.5 parents or guardians receive direct compensation from a school 192.6 district, a motor coach operating under charter carrier 192.7 authority, a transit bus providing services as defined in 192.8 section 174.22, subdivision 7, or a vehicle otherwise qualifying 192.9 as a type III vehicle under paragraph (5), when the vehicle is 192.10 properly registered and insured and being driven by an employee 192.11 or agent of a school district for nonscheduled transportation. 192.12 A school bus may be type A, type B, type C, or type D, or type 192.13 III as follows: 192.14 (1) A "type A school bus" is a conversion or body 192.15 constructed upon a van-type or cutaway front section vehicle 192.16 with a left-side driver's door, designed for carrying more than 192.17 ten persons. This definition includes two classifications: 192.18 type A-I, with a gross vehicle weight rating (GVWR) over 10,000 192.19 pounds; and type A-II, with a GVWR of 10,000 pounds or less. 192.20 (2) A "type B school bus" is a conversion or body 192.21 constructed and installed upon a van or front-section vehicle 192.22 chassis, or stripped chassis, with a gross vehicle weight rating 192.23 of more than 10,000 pounds, designed for carrying more than ten 192.24 persons. Part of the engine is beneath or behind the windshield 192.25 and beside the driver's seat. The entrance door is behind the 192.26 front wheels. 192.27 (3) A "type C school bus" is a body installed upon a flat 192.28 back cowl chassis with a gross vehicle weight rating of more 192.29 than 10,000 pounds, designed for carrying more than ten 192.30 persons. All of the engine is in front of the windshield and 192.31 the entrance door is behind the front wheels. 192.32 (4) A "type D school bus" is a body installed upon a 192.33 chassis, with the engine mounted in the front, midship or rear, 192.34 with a gross vehicle weight rating of more than 10,000 pounds, 192.35 designed for carrying more than ten persons. The engine may be 192.36 behind the windshield and beside the driver's seat; it may be at 193.1 the rear of the bus, behind the rear wheels, or midship between 193.2 the front and rear axles. The entrance door is ahead of the 193.3 front wheels. 193.4 (5) Except for vehicles equipped with lifts, type III 193.5 school buses and type III Head Start buses are restricted to 193.6 passenger cars, station wagons, vans, and buses havinga maximum193.7 an original maximum manufacturer's rated seating capacity of ten 193.8 or fewer people, including the driver, and a gross vehicle 193.9 weight rating of 10,000 pounds or less. In this subdivision, 193.10 "gross vehicle weight rating" means the value specified by the 193.11 manufacturer as the loaded weight of a single vehicle. A "type 193.12 III school bus" and "type III Head Start bus" must not be 193.13 outwardly equipped and identified as a type A, B, C, or D school 193.14 bus or type A, B, C, or D Head Start bus. 193.15 Sec. 92. Minnesota Statutes 1996, section 169.448, 193.16 subdivision 2, is amended to read: 193.17 Subd. 2. [SCHOOL MOTOR COACHES.] (a) A school district may 193.18 not acquire a motor coach for transportation purposes. 193.19 (b) A motor coach acquired by a school district before 193.20 March 26, 1986, may be used by it only to transport students 193.21 participating in school activities, their instructors, and 193.22 supporting personnel to and from school activities. A motor 193.23 coach may not be outwardly equipped and identified as a school 193.24 bus. A motor coach operated under this subdivision is not a 193.25 school bus for purposes of section 124.225. Thestate board of193.26educationcommissioner of children, families, and learning shall 193.27 implement rules governing the equipment, identification, 193.28 operation, inspection, and certification of motor coaches 193.29 operated under this subdivision. 193.30 (c) After January 1, 1998, a school district may not own or 193.31 operate a motor coach for any purpose. 193.32 Sec. 93. Minnesota Statutes 1996, section 169.451, 193.33 subdivision 5, is amended to read: 193.34 Subd. 5. [RANDOM SPOT INSPECTIONS.] In addition to the 193.35 annual inspection, the Minnesota state patrol has authority to 193.36 conduct random, unannounced spot inspections of any school bus 194.1 or Head Start bus being operated within the stateat the194.2location where the bus is kept when not in operationto 194.3 ascertain whetherits construction, design, equipment, and color194.4complyit is in compliance withallprovisions of law, including 194.5 the Minnesota school bus equipment standards in sections 194.6 169.4501 to 169.4504, subject to the procedures approved by the 194.7 commissioner. 194.8 Sec. 94. Minnesota Statutes 1997 Supplement, section 194.9 169.974, subdivision 2, is amended to read: 194.10 Subd. 2. [LICENSE REQUIREMENTS.] No person shall operate a 194.11 motorcycle on any street or highway without having a valid 194.12 standard driver's license with a two-wheeled vehicle endorsement 194.13 as provided by law. No such two-wheeled vehicle endorsement 194.14 shall be issued unless the person applying therefor has in 194.15 possession a valid two-wheeled vehicle instruction permit as 194.16 provided herein, has passed a written examination and road test 194.17 administered by the department of public safety for such 194.18 endorsement, and, in the case of applicants under 18 years of 194.19 age, shall present a certificate or other evidence of having 194.20 successfully completed an approved two-wheeled vehicle driver's 194.21 safety course in this or another state, in accordance with rules 194.22 promulgated by thestate board of educationcommissioner of 194.23 children, families, and learning for courses offered through the 194.24 public schools, or rules promulgated by the commissioner of 194.25 public safety for courses offered by a private or commercial 194.26 school or institute. The commissioner of public safety may 194.27 waive the road test for any applicant on determining that the 194.28 applicant possesses a valid license to operate a two-wheeled 194.29 vehicle issued by a jurisdiction that requires a comparable road 194.30 test for license issuance. A two-wheeled vehicle instruction 194.31 permit shall be issued to any person over 16 years of age, who 194.32 is in possession of a valid driver's license, who is enrolled in 194.33 an approved two-wheeled vehicle driver's safety course, and who 194.34 has passed a written examination for such permit and has paid 194.35 such fee as the commissioner of public safety shall prescribe. 194.36 A two-wheeled vehicle instruction permit shall be effective for 195.1 one year, and may be renewed under rules to be prescribed by the 195.2 commissioner of public safety. 195.3 No person who is operating by virtue of a two-wheeled 195.4 vehicle instruction permit shall: 195.5 (a) carry any passengers on the streets and highways of 195.6 this state on the motorcycle which the person is operating; 195.7 (b) drive the motorcycle at nighttime; 195.8 (c) drive the motorcycle on any highway marked by the 195.9 commissioner as an interstate highway pursuant to title 23 of 195.10 the United States Code; or 195.11 (d) drive the motorcycle without wearing protective 195.12 headgear that complies with standards established by the 195.13 commissioner of public safety. 195.14 Notwithstanding the provisions of this subdivision, the 195.15 commissioner of public safety may, however, issue a special 195.16 motorcycle permit, restricted or qualified in such manner as the 195.17 commissioner of public safety shall deem proper, to any person 195.18 demonstrating a need therefor and unable to qualify for a 195.19 standard driver's license. 195.20 Sec. 95. Minnesota Statutes 1997 Supplement, section 195.21 290.0674, subdivision 1, is amended to read: 195.22 Subdivision 1. [CREDIT ALLOWED.] An individual is allowed 195.23 a credit against the tax imposed by this chapter in an amount 195.24 equal to the amount paid for education-related expenses for a 195.25 dependent in kindergarten through grade 12. For purposes of 195.26 this section, "education-related expenses" means: 195.27 (1) fees or tuition for instruction by an instructor under 195.28 section 120.101, subdivision 7, clause (1), (2), (3), (4), or 195.29 (5), for instruction outside the regular school day or school 195.30 year, including tutoring, driver's education taken as part of 195.31 school curriculum, or summer camps, in grade or age appropriate 195.32 curricula that supplement curricula and instruction available 195.33 during the regular school year, that assists a dependent to 195.34 improve knowledge of core curriculum areas or to expand 195.35 knowledge and skills under the graduation rule under section 195.36 121.11, subdivision 7c, and that do not include the teaching of 196.1 religious tenets, doctrines, or worship, the purpose of which is 196.2 to instill such tenets, doctrines, or worship; 196.3 (2) fees or tuition for instruction for driver's education 196.4 from a private entity if the school the student attends offers 196.5 driver's education as part of a school curriculum and charges a 196.6 fee for the program; 196.7 (3) expenses for textbooks, including books and other 196.8 instructional materials and equipment used in elementary and 196.9 secondary schools in teaching only those subjects legally and 196.10 commonly taught in public elementary and secondary schools in 196.11 this state. "Textbooks" does not include instructional books 196.12 and materials used in the teaching of religious tenets, 196.13 doctrines, or worship, the purpose of which is to instill such 196.14 tenets, doctrines, or worship, nor does it include books or 196.15 materials for extracurricular activities including sporting 196.16 events, musical or dramatic events, speech activities, driver's 196.17 education, or similar programs; 196.18(3)(4) a maximum expense of $200 per family for personal 196.19 computer hardware, excluding single purpose processors, and 196.20 educational software that assists a dependent to improve 196.21 knowledge of core curriculum areas or to expand knowledge and 196.22 skills under the graduation rule under section 121.11, 196.23 subdivision 7c, purchased for use in the taxpayer's home and not 196.24 used in a trade or business regardless of whether the computer 196.25 is required by the dependent's school; and 196.26(4)(5) the amount paid to others for transportation of a 196.27 dependent attending an elementary or secondary school situated 196.28 in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 196.29 wherein a resident of this state may legally fulfill the state's 196.30 compulsory attendance laws, which is not operated for profit, 196.31 and which adheres to the provisions of the Civil Rights Act of 196.32 1964 and chapter 363. 196.33 Sec. 96. Minnesota Statutes 1996, section 471.18, is 196.34 amended to read: 196.35 471.18 [STATE BOARD OF EDUCATIONCOMMISSIONER OF CHILDREN, 196.36 FAMILIES, AND LEARNING TO ESTABLISH QUALIFICATIONS.] 197.1 In all cases where school funds or property are utilized, 197.2 thestate board of educationcommissioner of children, families, 197.3 and learning shall: 197.4 (1) Establish minimum qualifications of local recreational 197.5 directors and instructors; 197.6 (2) Prepare or cause to be prepared, published, and 197.7 distributed adequate and appropriate manuals and other materials 197.8 as it may deem necessary or suitable to carry out the provisions 197.9 of sections 471.15 to 471.19. 197.10 Sec. 97. Laws 1997, First Special Session chapter 4, 197.11 article 8, section 4, subdivision 3, is amended to read: 197.12 Subd. 3. [BOARD; APPOINTMENTS.] The resolution in 197.13 subdivision 2 shall provide for a library board offiveseven 197.14 members as follows: two members appointed by the school board 197.15 of independent school district No. 319, one member appointed by 197.16 each town board located within independent school district No. 197.17 319 boundaries, one member appointed by the council of the city 197.18 of Nashwauk, and one member appointed by the Itasca county board 197.19 to represent the unorganized towns within the school district 197.20 territory. 197.21 Sec. 98. [ACCELERATED TRANSITION PLAN.] 197.22 Notwithstanding Minnesota Statutes, section 122.23, 197.23 subdivision 2b, or other law to the contrary, independent school 197.24 district No. 2884, Red Rock Central, is authorized to terminate 197.25 all existing school board members' terms by the first Monday in 197.26 January 1999, and to hold elections for seven school board 197.27 members at the 1998 school district general election under 197.28 Minnesota Statutes, section 205A.04. Of the seven board members 197.29 elected, three members shall be elected to serve four-year terms 197.30 and four members shall be elected to serve two-year terms. Only 197.31 one board member from each election district shall be elected to 197.32 serve a four-year term. Candidates must specify in their 197.33 affidavit the election district and the term of office to which 197.34 they are seeking election. The school board members elected at 197.35 the 1998 school district general election shall assume office on 197.36 the first Monday in January 1999. The school board of 198.1 independent school district No. 2884, Red Rock Central, then 198.2 shall consist of seven members until such time as the electors 198.3 in the school district vote on a proposition favoring a 198.4 six-member board under Minnesota Statutes, section 123.33, 198.5 subdivision 1. 198.6 Sec. 99. [BUFFALO SCHOOL YEAR.] 198.7 Notwithstanding Minnesota Statutes, section 126.12, 198.8 subdivision 1, and Laws 1997, First Special Session chapter 4, 198.9 article 7, section 49, subdivision 1, for the 1998-1999 and 198.10 1999-2000 school years only, independent school district No. 198.11 877, Buffalo, may begin the school year any day prior to Labor 198.12 Day. 198.13 Sec. 100. [FUND TRANSFERS.] 198.14 Subdivision 1. [ADA-BORUP.] Notwithstanding Minnesota 198.15 Statutes, section 124.83, subdivision 6, independent school 198.16 district No. 2854, Ada-Borup, may use up to $90,000 of its 198.17 health and safety revenue for capital improvements, equipment, 198.18 or furnishings for new facilities. 198.19 Subd. 2. [LYND.] Notwithstanding Minnesota Statutes, 198.20 sections 121.912 and 121.9121, on June 30, 1998, independent 198.21 school district No. 415, Lynd, may permanently transfer $100,000 198.22 from reserve accounts in the general fund to the unreserved 198.23 general fund. The transfer may be made from the reemployment 198.24 account and the bus purchase account. Transfers from the 198.25 reemployment and bus purchase accounts may be made without 198.26 making a levy reduction. 198.27 Subd. 3. [RUSSELL.] Notwithstanding Minnesota Statutes, 198.28 section 121.912 or 121.9121, on June 30, 1998, independent 198.29 school district No. 418, Russell, may permanently transfer up to 198.30 $150,000 from its capital expenditure fund to the district's 198.31 general fund. The transfer must not include health and safety 198.32 or handicapped access revenue. 198.33 Subd. 4. [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 198.34 section 121.912 or 121.9121, on June 30, 1998, independent 198.35 school district No. 2609, Win-E-Mac, may permanently transfer 198.36 the balance of its health and safety account to its general fund. 199.1 Sec. 101. [REPEALER.] 199.2 (a) Minnesota Statutes 1996, sections 121.02, subdivisions 199.3 2a, 3, and 4; and 121.11, subdivisions 5, 7, 7b, 9, 11, 12, and 199.4 14; and Minnesota Statutes 1997 Supplement, section 121.11, 199.5 subdivision 7e, are repealed effective July 1, 1999. 199.6 (b) Minnesota Statutes 1996, section 121.11, subdivision 199.7 7d, is repealed effective January 10, 1999. 199.8 (c) Minnesota Statutes 1996, section 124.647; Minnesota 199.9 Statutes 1997 Supplement, sections 120.1015; and 169.452; are 199.10 repealed. 199.11 (d) Minnesota Statutes 1996, section 126.12, is repealed 199.12 effective for the 2000-2001 school year and thereafter. 199.13 Sec. 102. [REVISOR INSTRUCTION.] 199.14 In the next and subsequent editions of Minnesota Statutes 199.15 and Minnesota Rules, the revisor shall change the term "state 199.16 board of education" or similar terms to the term "commissioner 199.17 of children, families, and learning" or similar terms wherever 199.18 they appear. 199.19 Sec. 103. [EFFECTIVE DATE.] 199.20 Sections 1 to 26, 29, 31 to 53, 69 to 75, 77 to 90, 92, 94, 199.21 96, and 102 are effective July 1, 1999. 199.22 Sections 27, 28, 30, 55, 98, and 99 are effective the day 199.23 following final enactment. 199.24 Section 100 is effective June 30, 1998. 199.25 Section 58 is effective July 1, 1998. 199.26 ARTICLE 7 199.27 STATE AGENCIES 199.28 Section 1. Laws 1997, First Special Session chapter 4, 199.29 article 10, section 3, subdivision 2, is amended to read: 199.30 Subd. 2. [DEPARTMENT.] For the department of children, 199.31 families, and learning: 199.32$24,360,000$24,910,000 ..... 1998 199.33$23,978,000$24,528,000 ..... 1999 199.34 (a) Any balance in the first year does not cancel but is 199.35 available in the second year. 199.36 (b) $21,000 each year is from the trunk highway fund. 200.1 (c) $622,000 in 1998 and $627,000 in 1999 is for the 200.2 academic excellence foundation. 200.3 Up to $50,000 each year is contingent upon the match of $1 200.4 in the previous year from private sources consisting of either 200.5 direct monetary contributions or in-kind contributions of 200.6 related goods or services, for each $1 of the appropriation. 200.7 The commissioner of children, families, and learning must 200.8 certify receipt of the money or documentation for the private 200.9 matching funds or in-kind contributions. The unencumbered 200.10 balance from the amount actually appropriated from the 200.11 contingent amount in 1998 does not cancel but is available in 200.12 1999. The amount carried forward must not be used to establish 200.13 a larger annual base appropriation for later fiscal years. 200.14 (d) $207,000 in 1998 and $210,000 in 1999 is for the state 200.15 board of education. 200.16 (e) $230,000 in 1998 and $234,000 in 1999 is for the board 200.17 of teaching. 200.18 (f) The expenditures of federal grants and aids as shown in 200.19 the biennial budget document and its supplements are approved 200.20 and appropriated and shall be spent as indicated. 200.21 (g) The department of children, families, and learning 200.22 shall develop a performance report on the quality of its 200.23 programs and services. The report must be consistent with the 200.24 process specified in Minnesota Statutes, sections 15.90 to 200.25 15.92. The goals, objectives, and measures of this report must 200.26 be developed in cooperation with the chairs of the finance 200.27 divisions of the education committees of the house of 200.28 representatives and senate, the department of finance, and the 200.29 office of legislative auditor. The report must include data to 200.30 indicate the progress of the department in meeting its goals and 200.31 objectives. 200.32 (h) At least $50,000 is to ensure compliance with state and 200.33 federal laws prohibiting discrimination because of race, 200.34 religion, or sex. The department shall use the appropriation to 200.35 provide state-level leadership on equal education opportunities 200.36 which promote elimination of discriminatory practices in the 201.1 areas of race, religion, and sex in public schools and public 201.2 educational agencies under its general supervision and on 201.3 activities including, at least, compliance monitoring and 201.4 voluntary compliance when local school district deficiencies are 201.5 found. 201.6 (i) Notwithstanding Minnesota Statutes, section 15.53, 201.7 subdivision 2, the commissioner of children, families, and 201.8 learning may contract with a school district for a period no 201.9 longer than five consecutive years to work in the development or 201.10 implementation of the graduation rule. The commissioner may 201.11 contract for services and expertise as necessary. The contracts 201.12 are not subject to Minnesota Statutes, sections 16B.06 to 16B.08. 201.13 (j) In preparing the department budget for fiscal years 201.14 2000-2001, the department shall shift all administrative funding 201.15 from aids appropriations into the appropriation for the 201.16 department. 201.17 (k) Reallocations of excesses under Minnesota Statutes, 201.18 section 124.14, subdivision 7, from appropriations within this 201.19 act shall only be made to deficiencies in programs with 201.20 appropriations contained within this act. 201.21 (l)$850,000$1,400,000 each year is for costs associated 201.22 with education adequacy litigationcostsand may only be used 201.23 for those purposes. These appropriations are one-time 201.24 only. Amounts appropriated for one year of the biennium may be 201.25 used for the other. The commissioner shall contract with an 201.26 independent facilitator to attempt mediation of the lawsuits. 201.27 (m) Collaborative efforts between the department of 201.28 children, families, and learning and the office of technology, 201.29 as specified in Minnesota Statutes, section 237A.015, include: 201.30 (1) advising the commissioner of children, families, and 201.31 learning on new and emerging technologies, potential business 201.32 partnerships, and technical standards; 201.33 (2) assisting the commissioner of children, families, and 201.34 learning in the sharing of data between state agencies relative 201.35 to children's programs; and 201.36 (3) as requested by the commissioner of children, families, 202.1 and learning, assisting in collaborative efforts for joint 202.2 prekindergarten through grade 12 and higher education projects, 202.3 including the learning network. 202.4 The commissioner of children, families, and learning shall have 202.5 final approval for prekindergarten through grade 12 programs and 202.6 lifelong learning programs, grant awards, and funding decisions. 202.7 Sec. 2. Laws 1997, First Special Session chapter 4, 202.8 article 10, section 4, is amended to read: 202.9 Sec. 4. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 202.10 CENTER FOR ARTS EDUCATION.] 202.11 The sums indicated in this section are appropriated from 202.12 the general fund to the center for arts education for the fiscal 202.13 years designated: 202.14$5,541,000$5,559,000 ..... 1998 202.15$6,054,000$6,090,000 ..... 1999 202.16 Of the fiscal year 1998 appropriation, $154,000 is to fund 202.17 artist and arts organization participation in the education 202.18 residency and education technology projects, $75,000 is for 202.19 school support for the residency project, and $121,000 is for 202.20 further development of the partners: arts and school for 202.21 students (PASS) program, including pilots. Of the fiscal year 202.22 1999 appropriation, $154,000 is to fund artist and arts 202.23 organizations participation in the education residency project, 202.24 $75,000 is for school support for the residency project, and 202.25 $121,000 is to fund the PASS program, including additional 202.26 pilots. The guidelines for the education residency project and 202.27 the pass program shall be developed and defined by the center 202.28 for arts education in cooperation with the Minnesota arts 202.29 board. The Minnesota arts board shall participate in the review 202.30 and allocation process. The center for arts education and the 202.31 Minnesota arts board shall cooperate to fund these projects. 202.32 Any balance in the first year does not cancel but is 202.33 available in the second year. 202.34 Sec. 3. Laws 1997, First Special Session chapter 4, 202.35 article 10, section 5, is amended to read: 202.36 Sec. 5. [APPROPRIATIONS; FARIBAULT ACADEMIES.] 203.1 The sums indicated in this section are appropriated from 203.2 the general fund to the department of children, families, and 203.3 learning for the Faribault academies for the fiscal years 203.4 designated: 203.5$8,910,000$8,949,000 ..... 1998 203.6$8,908,000$8,986,000 ..... 1999 203.7 Any balance in the first year does not cancel but is 203.8 available in the second year. 203.9 In the next biennial budget, the academies must assess 203.10 their progress in meeting the established performance measures 203.11 for the Faribault academies and inform the legislature on the 203.12 content of that assessment. The information must include an 203.13 assessment of its progress by consumers and employees.