Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1987 

                        CHAPTER 398-H.F.No. 753 
           An act relating to education; providing aids for 
          education and the distribution of tax revenues; 
          providing aids to libraries; appropriations to the 
          academies for the deaf and the blind, and the 
          department of education; changing secondary pupil unit 
          weighting; establishing general education revenue 
          composed of basic compensatory education, training and 
          experience, and sparsity revenue; combining certain 
          categorical aids; increasing the community education 
          formula; changing the capital expenditure formula; 
          providing for special instruction and services for 
          handicapped children from birth; establishing program 
          improvement grants, education districts, and area 
          learning centers; appropriating money; amending 
          Minnesota Statutes, sections 43A.08, subdivisions 1 
          and 1a; 118.12; 118.13; 118.14; 120.03, subdivision 1; 
          120.0752, by adding a subdivision; 120.17, 
          subdivisions 1, 2, 3, 3a, 3b, 5, 7a, 12, and by adding 
          subdivisions; 121.11, by adding a subdivision; 
          121.609, subdivision 4; 121.612, subdivisions 3, 5, 
          and by adding subdivisions; 121.87, subdivision 1, and 
          by adding a subdivision; 121.88, subdivisions 2, 7, 
          and by adding a subdivision; 121.904, subdivision 4a; 
          121.912, by adding a subdivision; 121.932, subdivision 
          3, and by adding a subdivision; 121.934, subdivisions 
          1, 2, and 6; 121.935, subdivision 6; 121.936, 
          subdivision 1; 122.541, subdivision 2; 123.34, 
          subdivision 9; 123.35, by adding a subdivision; 
          123.36, subdivision 13; 123.39, subdivision 1; 
          123.703, subdivision 3; 123.705; 124.05, subdivision 
          1; 124.14, subdivision 7; 124.17, subdivision 1, and 
          by adding a subdivision; 124.195, subdivisions 8 and 
          9; 124.2162, by adding a subdivision; 124.223; 
          124.225, subdivisions 1, 4b, 7b, 8a, 8i, and 10; 
          124.245, subdivision 3, and by adding subdivisions; 
          124.246, subdivision 2; 124.247, subdivision 3; 
          124.252, subdivision 3; 124.26, by adding 
          subdivisions; 124.271, subdivisions 2b and 7; 
          124.2711, subdivision 1; 124.273, subdivisions 1b and 
          5; 124.32, subdivisions 1b, 1d, 2, and 5; 124.573; 
          124.574, subdivisions 2b, 3, and 4; 124.646, 
          subdivision 1; 124A.02, subdivisions 8, 9, 16, and by 
          adding a subdivision; 124A.03, by adding a 
          subdivision; 124A.031, subdivision 4; 124A.032; 
          124A.036, by adding a subdivision; 124A.21; 125.03, 
          subdivision 5; 125.05, subdivision 1; 125.185, 
          subdivision 4; 125.611, subdivisions 11, 12, and 13; 
          126.02, subdivision 2; 126.54, subdivision 1; 126.56, 
          subdivisions 3 and 6; 126.67, subdivisions 3a, 6, and 
          by adding a subdivision; 126.70, subdivision 1, and by 
          adding a subdivision; 126.72, subdivision 1; 126.81, 
          subdivision 2; 128A.01; 128A.02, subdivisions 2 and 4; 
          129B.041, subdivisions 1 and 3; 129B.39; 129B.43, 
          subdivisions 1 and 4; 129C.10, subdivisions 1, 3, 4, 
          5, 6, and by adding subdivisions; 134.10; 136D.27; 
          136D.71; 136D.74, subdivision 2; 136D.87; 171.29, 
          subdivision 2; 275.125, subdivisions 4, 5, 5c, 6e, 8, 
          8c, 9, 11c, and by adding subdivisions; and 466.06; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 122, 123, 124, 124A, 125, 126, 128A, 129B, 
          and 134; repealing Minnesota Statutes, sections 
          120.17, subdivision 13; 121.20; 124.05, subdivision 2; 
          124.17, subidivisions 1a and 2d; 124.185; 124.2161; 
          124.2162; 124.2163; 124.225, subdivision 1a; 124.245, 
          subdivisions 1 and 2; 124.246; 124.247; 124.26, 
          subdivisions 1 and 6; 124.272; 124.273, subdivision 
          2b; 124.275; 124.65; 124.66; 124A.01; 124A.02, 
          subdivision 2, 5, 6, 7, 9, 11, 12, 13, and 14; 
          124A.03, subdivisions 1, 1a, 3, 4, and 6; 124A.031, 
          subdivision 1; 124A.033; 124A.035, subdivision 1; 
          124A.06, subdivisions 1, 1a, 1b, 2, 3a, and 4; 
          124A.08, subdivisions 1, 2, 3a, 4, and 5; 124A.10, 
          subdivisions 1, 2, 3a, and 4; 124A.12, subdivisions 1, 
          2, 3a, and 4; 124A.14, subdivisions 1, 2, 3, 4, 5, 5a, 
          and 6; 124A.16; 124A.20, subdivisions 1, 2, and 3; 
          124A.21; 125.611, subdivisions 8, 9, and 10; 126.031, 
          subdivision 2; 126.60; 126.62; 126.64; 126.65; 126.66; 
          126.67, subdivisions 1, 1a, 2a, 5b, and 9; 126.71; 
          129B.01; 129B.02; 129B.04; 129B.041, subdivision 4; 
          129B.05; 129B.32, subdivisions 2 and 5; 129B.33; 
          129B.35; 129B.36; 129B.37; 129B.43, subdivisions 2, 3, 
          and 6; 129B.61; 129B.62; 129B.63; 129B.64; 129B.65; 
          129B.66; 129B.67; 275.125, subdivisions 3, 5d, 8a, 
          11a, and 12; 354.66, subdivisions 4a and 9; 354A.094, 
          subdivisions 4a and 9; and 645.35. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                             APPROPRIATION 

                                SUMMARY 
    Section 1.  [WORDS OF APPROPRIATION; TABLE.] 
    The sums shown are appropriated from the general fund, or 
any other named fund, to the agencies for the purposes specified 
in this act, to be available for the fiscal year indicated for 
each purpose.  The figures "1988" and "1989," where used in this 
act, mean that the appropriation or appropriations listed under 
or along side them are available for the year ending June 30, 
1988, or June 30, 1989, respectively. 
SUMMARY BY FUND
                   1988            1989            TOTAL
General       $1,467,236,755  $1,503,199,155  $2,970,435,910
Public
Health           693,000         719,600       1,412,600
Trunk Hwy         20,700          20,700          41,400

                                ARTICLE 1 

                FOUNDATION AND GENERAL EDUCATION REVENUE 
    Section 1.  Minnesota Statutes 1986, section 121.904, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to section 275.125, subdivision 9a, 
and Laws 1976, chapter 20, section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the June and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2 which are for the fiscal year 
payable in that fiscal year plus 24 27 percent of the amount of 
the levy certified in the prior calendar year according to 
section 124A.03, subdivision 2, plus or minus auditor's 
adjustments, not including levy portions that are assumed by the 
state; or 
    (3) 24 27 percent of the amount of the levy certified in 
the prior calendar year, plus or minus auditor's adjustments, 
not including levy portions that are assumed by the state, which 
remains after subtracting, by fund, the amounts levied for the 
following purposes:  
    (i) reducing or eliminating projected deficits in the 
appropriated fund balance accounts for unemployment insurance 
and bus purchases;  
     (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, chapter 20, section 4; and 
     (iii) retirement and severance pay pursuant to section 
275.125, subdivision 6a, and Laws 1975, chapter 261, section 4; 
and 
     (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, and 
amounts levied pursuant to section 275.125, subdivision 14a. 
     (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
    (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable. 
    Sec. 2.  Minnesota Statutes 1986, section 124.17, is 
amended by adding a subdivision to read:  
    Subd. 1b.  [AFDC PUPIL UNITS.] In a district in which the 
number of pupils from families receiving aid to families with 
dependent children equals six percent or more of the actual 
pupil units in the district for the same year, as computed in 
subdivision 1, each such pupil shall be counted as an additional 
one-tenth of a pupil unit for each percent of concentration over 
five percent of such pupils in the district.  The percent of 
concentration shall be rounded down to the nearest whole 
percent.  In a district in which the percent of concentration is 
less than six, additional pupil units may not be counted for 
such pupils.  A pupil may not be counted as more than .6 
additional pupil unit under this subdivision.  The weighting in 
this subdivision is in addition to the weighting provided in 
subdivision 1.  
    Sec. 3.  Minnesota Statutes 1986, section 124.2162, is 
amended by adding a subdivision to read: 
    Subd. 3.  [REDISTRIBUTION.] For purposes of aid 
calculations, the commissioner may redistribute current year 
teacher retirement and FICA obligations among districts that 
have agreements for sharing staff or for cooperative education 
of pupils to adjust for changes in staffing patterns between the 
base year and the current year resulting from the agreements. 
    Sec. 4.  Minnesota Statutes 1986, section 124A.02, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [BASIC FOUNDATION AID; 1987-1988 SCHOOL YEAR.] A 
district's basic foundation aid for the 1987-1988 school year 
equals its basic foundation revenue for that school year, minus 
the lesser of (1) the basic maintenance mill rate times the 
applicable adjusted assessed valuation of the district; or (2) 
$1,700 times the district's total pupil units for that school 
year. 
    Sec. 5.  Minnesota Statutes 1986, section 124A.02, 
subdivision 8, is amended to read:  
    Subd. 8.  [EQUALIZING FACTOR.] "Equalizing factor" means a 
number equal to the minimum EARC valuation per total pupil unit 
which disqualifies a district from earning any basic foundation 
aid.  The equalizing factor for the 1987-1988 school year and 
for levies for use in that school year equals $74,890.  The 
equalizing factor for each school year, except the 1987-1988 
school year, and for levies for use in that school year equals 
the ratio, rounded to the nearest dollar, of the foundation aid 
formula allowance for that school year to the basic maintenance 
mill rate for that school year.  
    Sec. 6.  Minnesota Statutes 1986, section 124A.02, 
subdivision 9, is amended to read: 
    Subd. 9.  [FORMULA ALLOWANCE.] "Foundation aid formula 
allowance" or "formula allowance" means the amount of revenue 
per pupil unit used in the computation of foundation aid for a 
particular school year and in the computation of permissible 
levies for use in that school year.  The formula allowance shall 
be $1,585 for the 1984 payable 1985 levies and for foundation 
aid for the 1985-1986 school year.  The formula allowance shall 
be $1,690 for the 1985 payable 1986 levies and for foundation 
aid for the 1986-1987 school year.  The formula allowance is 
$1,700 $1,720 for the 1986 payable 1987 levies and for 
foundation aid for the 1987-1988 school year.  
    Sec. 7.  Minnesota Statutes 1986, section 124A.02, 
subdivision 16, is amended to read: 
    Subd. 16.  [PUPIL UNITS, AFDC.] For the 1984-1985 and 
1985-1986 school years, "AFDC pupil units" means 98.5 percent of 
the pupil units identified in Minnesota Statutes 1980, section 
124.17, subdivision 1, clauses (4) and (5) in the 1980-1981 
school year.  
    For the 1986-1987 and 1987-1988 school year and each year 
thereafter years, "AFDC pupil units" means pupil units 
identified in section 124.17, subdivision 1a.  For the 1988-1989 
school year and each year thereafter, "AFDC pupil units" means 
pupil units identified in section 2. 
    Sec. 8.  Minnesota Statutes 1986, section 124A.03, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [BASIC MAINTENANCE LEVY; DISTRICTS OFF THE 
FORMULA; 1987-1988 SCHOOL YEAR.] If the amount of the maximum 
levy limitation under subdivision 1 for any district exceeds the 
product of $1,700 times the estimated number of total pupil 
units for that district for the 1987-1988 school year, the levy 
limitation for that district under subdivision 1 is limited to 
the greater of the dollar amount of the levy the district 
certified in 1977 under Minnesota Statutes 1978, section 
275.125, subdivision 2a, clause (1), or the following difference 
but not to exceed the levy limitation under subdivision 1: 
    (a) the product of $1,700 times the estimated number of 
total pupil units for the 1987-1988 school year; less 
    (b) the estimated amount of any payments which would reduce 
the district's foundation aid entitlement as provided in section 
124A.035, subdivision 4, in the school year in which the levy is 
recognized as revenue. 
    A levy made by a district under this subdivision shall be 
construed to be the levy made by that district under subdivision 
1 for purposes of statutory cross-reference. 
    Sec. 9.  Minnesota Statutes 1986, section 124A.032, is 
amended to read:  
    124A.032 [ANNUAL FOUNDATION AID APPROPRIATION.] 
    There is annually appropriated from the general fund to the 
department of education the amount necessary for foundation 
aid or general education aid.  This amount shall be reduced by 
the amount of any funds specifically appropriated for the same 
purpose in any year from any state fund.  
    Sec. 10.  Minnesota Statutes 1986, section 124A.21, is 
amended to read:  
    124A.21 [ISOLATED SCHOOL AID FOR ST. LOUIS COUNTY 
DISTRICT.] 
    In the 1985-1986 and 1986-1987 1987-1988 school years year, 
a district having more than 2,500 square miles in area and 
operating six or more secondary schools shall be entitled to 
additional foundation aid.  The additional aid shall equal $50 
times the actual pupil units in each of these the school years 
year. 
    Sec. 11.  [124A.22] [GENERAL EDUCATION REVENUE.] 
    Subdivision 1.  [GENERAL EDUCATION REVENUE.] The general 
education revenue for each district equals the sum of the 
district's basic revenue, compensatory education revenue, 
training and experience revenue, and sparsity revenue. 
    Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
district equals the formula allowance times the actual pupil 
units for the school year.  The formula allowance is $2,735 for 
the 1988-1989 school year. 
    Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
compensatory education revenue for each district equals the 
formula allowance times the AFDC pupil units counted according 
to section 2 for the school year. 
    Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] The training 
and experience revenue for each district equals the greater of 
zero or the result of the following computation:  
    (a) Subtract 1.6 from the training and experience index. 
    (b) Multiply the result in clause (a) by the product of 
$700 times the actual pupil units for the school year. 
    Subd. 5.  [DEFINITIONS.] The definitions in this 
subdivision apply only to subdivision 6. 
    (a) "High school" means a secondary school that has pupils 
enrolled in at least the 10th, 11th, and 12th grades.  If there 
is no secondary school in the district that has pupils enrolled 
in at least the 10th, 11th, and 12th grades, the commissioner 
shall designate one school in the district as a high school for 
the purposes of this section. 
    (b) "Secondary average daily membership" means, for a 
district that has only one high school, the average daily 
membership of resident pupils in grades seven through 12.  For a 
district that has more than one high school, "secondary average 
daily membership" for each high school means the product of the 
average daily membership of resident pupils in grades seven 
through 12 in the high school, times the ratio of six to the 
number of grades in the high school. 
    (c) "Attendance area" means the total surface area of the 
district, in square miles, divided by the number of high schools 
in the district. 
    (d) "Isolation index" for a high school means the square 
root of one-half the attendance area plus the distance in miles, 
according to the usually-traveled routes, between the high 
school and the nearest high school.  
    (e) "Qualifying high school" means a high school that has 
an isolation index greater than 23 and that has secondary 
average daily membership of less than 400.  
    Subd. 6.  [SPARSITY REVENUE.] A district's sparsity revenue 
for a school year equals the sum of the results of the following 
calculation for each qualifying high school in the district: 
    (1) the formula allowance for the school year, multiplied 
by 
    (2) the secondary average daily membership of the high 
school, multiplied by 
    (3) the quotient obtained by dividing 400 minus the 
secondary average daily membership by 400 plus the secondary 
daily membership, multiplied by 
    (4) the lesser of one or the quotient obtained by dividing 
the isolation index minus 23 by ten. 
    Sec. 12.  [124A.23] [GENERAL EDUCATION LEVY AND AID.] 
    Subdivision 1.  [GENERAL EDUCATION MILL RATE.] The 
commissioner of revenue shall establish the general education 
mill rate and certify it to the commissioner of education by 
August 1 of each year for levies payable in the following year.  
The general education mill rate shall be a rate, rounded up to 
the nearest tenth of a mill, that, when applied to the adjusted 
assessed valuation for all districts, raises the amount 
specified in this subdivision.  The general education mill rate 
for the 1989 fiscal year shall be the rate that raises 
$1,079,000,000.  The general education mill rate certified by 
the commissioner of revenue must not be changed due to changes 
or corrections made to a district's adjusted assessed valuation 
after the mill rate has been certified.  
    Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
education revenue, a district may levy an amount not to exceed 
the general education mill rate times the adjusted assessed 
valuation of the district for the preceding year.  If the amount 
of the general education levy would exceed the general education 
revenue, the general education levy shall be determined 
according to subdivision 3.  The adjusted assessed valuation 
must be determined each year by the equalization aid review 
committee according to section 124.2131. 
     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
FORMULA.] If the amount of the general education levy for a 
district exceeds the district's general education revenue, the 
amount of the general education levy shall be limited to the 
following: 
     (1) the district's general education revenue; plus 
     (2) the amount of the aid reduction for the same school 
year according to section 13; minus 
    (3) payments made for the same school year according to 
section 124A.035, subdivision 4. 
    For purposes of statutory cross-reference, a levy made 
according to this subdivision shall be construed to be the levy 
made according to subdivision 2. 
    Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
education aid is the difference between the general education 
revenue and the general education levy, multiplied times the 
ratio of the actual amount levied to the permitted levy.  
    Subd. 5.  [USES OF REVENUE.] General education revenue may 
be used during the regular school year and the summer for 
general and special school purposes. 
    Sec. 13.  [124A.24] [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 12, subdivision 3, an amount must be 
deducted from state aid authorized in chapters 124 and 124A, 
receivable for the same school year, and from other state 
payments receivable for the same school year authorized in 
sections 273.115; 273.116; 273.123, subdivision 6; 273.13, 
subdivision 15a; and Laws 1983, chapter 342, article 8, section 
8.  The aid in section 124.646 must not be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education mill rate, according to section 
12, times the district's adjusted assessed valuation used to 
determine the general education aid for the same school year; 
and 
    (2) the district's general education revenue for the same 
school year, according to section 11. 
    However, for fiscal year 1989, the amount of the deduction 
shall be one-fourth of the difference between clauses (1) and 
(2); for fiscal year 1990, the amount of the deduction shall be 
one-half of the difference between clauses (1) and (2); and for 
fiscal year 1991, the amount of the deduction shall be 
three-fourths of the difference between clauses (1) and (2). 
    Sec. 14.  [124A.25] [SUPPLEMENTAL REVENUE.] 
    Subdivision 1.  [1987-1988 REVENUE.] "1987-1988 revenue" 
means the sum of the following categories of revenue for a 
district for the 1987-1988 school year: 
    (1) basic foundation revenue, tier revenue, and declining 
pupil unit revenue, according to chapter 124A, plus any 
reduction to second tier revenue, according to Minnesota 
Statutes 1986, section 124A.08, subdivision 5; 
    (2) teacher retirement and FICA aid, according to Minnesota 
Statutes 1986, sections 124.2162 and 124.2163; 
    (3) chemical dependency aid, according to Minnesota 
Statutes 1986, section 124.246; 
    (4) gifted and talented education aid, according to 
Minnesota Statutes 1986, section 124.247; 
    (5) interdistrict cooperation aid and levy, according to 
Minnesota Statutes 1986, sections 124.272 and 275.125, 
subdivision 8a; 
     (6) arts education aid, according to Minnesota Statutes 
1986, section 124.275; 
     (7) summer program aid and levy, according to Minnesota 
Statutes 1986, sections 124A.03 and 124A.033; 
     (8) programs of excellence grants, according to Minnesota 
Statutes 1986, section 126.60; and 
     (9) liability insurance levy, according to Minnesota 
Statutes 1986, section 466.06. 
     Subd. 2.  [MINIMUM ALLOWANCE.] "Minimum allowance" for a 
district means: 
     (1) the district's 1987-1988 revenue, according to 
subdivision 1; divided by 
     (2) the district's 1987-1988 actual pupil units, adjusted 
for the change in pupil unit weighting made in article 3, 
section 16; plus 
     (3) $40. 
    Subd. 3.  [REVENUE AMOUNT.] If a district's minimum 
allowance exceeds the amount of its general education revenue 
per actual pupil unit for a school year, the district shall 
receive supplemental revenue equal to the amount of the excess 
times the actual pupil units for the school year. 
    Subd. 4.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
revenue, a district may levy an amount not to exceed the product 
of its supplemental revenue for the school year times the the 
lesser of one or the ratio of its general education levy to its 
general education revenue for the same year. 
    Subd. 5.  [SUPPLEMENTAL AID.] A district's supplemental aid 
is the difference between its supplemental revenue and its 
supplemental levy, times the ratio of the actual amount levied 
to the permitted levy. 
    Subd. 6.  [USES OF REVENUE.] Supplemental revenue may be 
used during the regular school year and the summer for general 
and special school purposes. 
    Sec. 15.  [124A.26] [REDUCTION TO GENERAL EDUCATION 
REVENUE.] 
    Subdivision 1.  [REVENUE REDUCTION.] A district's general 
education revenue for a school year shall be reduced if the net 
unappropriated operating fund balance as of June 30 in the 
second prior school year exceeds $600 times the actual pupil 
units in the second prior year.  The amount of the reduction 
shall equal the lesser of: 
    (1) the amount of the excess, or 
    (2) $150 times the actual pupil units for the school year. 
    Subd. 2.  [LEVY REDUCTION.] If a district's general 
education revenue is reduced, the general education levy shall 
be reduced by the following amount: 
    (1) the reduction specified in subdivision 1, times 
    (2) the lesser of one or the ratio of the district's 
general education levy to its general education revenue.  
    Subd. 3.  [AID REDUCTION.] A district's general education 
aid shall be reduced by an amount equal to the difference 
between the revenue reduction and the levy reduction.  
    Sec. 16.  [124A.27] [RESERVED REVENUE FOR CERTAIN 
PROGRAMS.] 
    Subdivision 1.  [REQUIREMENT.] An amount equal to 1.85 
percent of the basic revenue under section 11, subdivision 2, 
shall be reserved and may be used only to provide one or more of 
the programs enumerated in this section.  The school board shall 
determine which programs to provide, the manner in which they 
will be provided, and the extent to which other money may be 
used for the programs.  Except for the requirements of sections 
17 and 18, the remaining general education revenue under section 
11 and supplemental revenue under section 14 may be used to 
provide one or more of the programs enumerated in this section.  
    Subd. 2.  [STATE ASSISTANCE.] The state board of education 
and the commissioner of education shall provide assistance to 
school boards offering the programs enumerated in this section.  
The state board or commissioner may establish an advisory 
committee for any program area.  Technical assistance shall be 
provided commensurate with school board and district needs.  
State board of education rules apply to all programs or portions 
of programs offered. 
    Subd. 3.  [SEPARATE RECORDS.] A district offering any 
program enumerated in this section shall maintain records of the 
expenditures for each program offered. 
    Subd. 4.  [ARTS EDUCATION.] A school board may use the 
reserved revenue to provide a variety of arts education programs 
for its pupils and staff.  The programs may involve staff 
development, curriculum offerings, and arts activities for all 
forms of creative and artistic endeavors. 
    Subd. 5.  [CHEMICAL ABUSE PREVENTION.] A school board may 
use the reserved revenue to offer a program to prevent chemical 
abuse among pupils in public and nonpublic schools and area 
vocational technical institutes.  
    Subd. 6.  [GIFTED AND TALENTED.] A school board may use the 
reserved revenue to offer programs for gifted and talented 
pupils. 
    Subd. 7.  [INTERDISTRICT COOPERATION TO EXPAND CURRICULUM.] 
A school board may use the reserved revenue to expand curricular 
offerings in secondary mathematics, secondary science, foreign 
languages, and computer usage by entering into cooperation 
agreements with other school boards.  The agreements shall 
emphasize instruction and minimize administrative costs.  
    Subd. 8.  [PROGRAMS OF EXCELLENCE.] A school board may use 
the reserved revenue for a secondary academic program designated 
by the commissioner of education as a program of excellence.  
The commissioner shall establish criteria for the programs of 
excellence and may approve applications of not more than 100 
nonresident pupils to attend the programs full-time.  The 
district of attendance may count a pupil attending a program as 
a resident pupil for the purpose of determining aids and levies. 
     Subd. 9.  [SUMMER PROGRAMS.] A school board may use the 
reserved revenue to provide summer instructional programs that 
are offered for credit or required for graduation or that 
provide academic enrichment or remediation.  The reserved 
revenue may not be used for recreational sports, leisure 
activities, entertainment, recreational activities, crafts, 
hobbies, or any other classes of a similar nature.  Summer 
programs for a handicapped pupil shall relate to the pupil's 
individual education plan. 
     Subd. 10.  [LIABILITY INSURANCE.] A school board may use 
the reserved revenue to procure liability insurance, according 
to section 466.06. 
    Sec. 17.  [124A.28] [COMPENSATORY EDUCATION REVENUE.] 
    Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
education revenue under section 11, subdivision 3, may be used 
only to meet the special educational needs of pupils whose 
educational achievement is below the level that is appropriate 
for pupils of their age.  These needs may be met by providing at 
least some of the following: 
    (1) remedial instruction in reading, language arts, and 
mathematics to improve the achievement level of these pupils; 
    (2) additional teachers and teacher aides to provide more 
individualized instruction to these pupils; 
    (3) summer programs that enable these pupils to improve 
their achievement or that reemphasize material taught during the 
regular school year; 
    (4) in-service education for teachers, teacher aides, 
principals, and other personnel to improve their ability to 
recognize these pupils and provide appropriate responses to the 
pupils' needs; 
    (5) for instruction of these pupils, textbooks, workbooks, 
periodicals, pamphlets, photographs, reproductions, filmstrips, 
prepared slides, prerecorded video programs, sound recordings, 
desk charts, games, study prints and pictures, desk maps, 
models, learning kits, blocks and cubes, flashcards, 
instructional computer software programs, pencils, pens, 
crayons, notebooks, duplicating fluids, and papers; 
    (6) programs to reduce truancy, encourage completion of 
high school, enhance self-concept, provide health services, 
provide nutrition services, provide a safe and secure learning 
environment, provide coordination for pupils receiving services 
from other governmental agencies, provide psychological services 
to determine the level of social, emotional, cognitive, and 
intellectual development, and provide counseling services, 
guidance services, and social work services; and 
    (7) bilingual programs, bicultural programs, and programs 
for pupils of limited English proficiency. 
    Subd. 2.  [SEPARATE ACCOUNTS.] Each district that receives 
compensatory education revenue shall maintain separate accounts 
to identify expenditures for salaries and programs related to 
this revenue. 
    Sec. 18.  [124A.29] [RESERVED REVENUE FOR STAFF 
DEVELOPMENT.] 
    Of a district's basic revenue under section 11, subdivision 
2, an amount equal to $10 times the number of actual pupil units 
shall be reserved and may be used only to provide staff 
development programs, according to article 8, sections 27 and 
28.  The school board shall determine which programs to provide, 
the manner in which they will be provided, and the extent to 
which other money may be used for the programs.  
    Sec. 19.  Minnesota Statutes 1986, section 129B.43, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORIZATION.] A school district or group 
of districts that wishes to receive a grant for may establish an 
improved learning programs may apply to the council on quality 
education for approval program.  Programs may be approved for 
one portion of a school population, one or several attendance 
areas, or one or a group of districts. 
    Sec. 20.  Minnesota Statutes 1986, section 129B.43, 
subdivision 4, is amended to read:  
    Subd. 4.  [RULES AND RIGHTS.] On recommendation of the 
council of quality education, The state board of education may 
waive school district compliance with its rules which would 
prevent implementation of an improved learning program.  
Participation in an improved learning program as a 
principal-teacher, counselor-teacher, or career teacher shall 
not affect seniority in the district or rights under the 
applicable collective bargaining agreement.  
    Sec. 21.  Minnesota Statutes 1986, section 275.125, 
subdivision 4, is amended to read:  
    Subd. 4.  [MISCELLANEOUS LEVY AUTHORIZATIONS.] A school 
district may levy the amounts necessary to make payments for 
bonds issued and for interest thereon, including the bonds and 
interest thereon, issued as authorized by Minnesota Statutes 
1974, section 275.125, subdivision 3, clause (7) (C), as it read 
in Minnesota Statutes 1974; the amounts necessary for repayment 
of debt service loans and capital loans; the amounts necessary 
to pay the district's obligations under section 6.62; the amount 
authorized for liabilities of dissolved districts pursuant to 
section 122.45; the amounts necessary to pay the district's 
obligations under section 268.06, subdivision 25; the amounts 
necessary to pay for job placement services offered to employees 
who may become eligible for benefits pursuant to section 268.08; 
the amounts necessary to pay the district's obligations under 
section 127.05; the amounts authorized by section 122.531; and 
the amounts necessary to pay the district's obligations under 
section 122.533; and the amounts necessary to pay the district's 
insurance premium costs under section 466.06. 
    Sec. 22.  Minnesota Statutes 1986, section 466.06, is 
amended to read:  
    466.06 [LIABILITY INSURANCE.] 
    The governing body of any municipality may procure 
insurance against liability of the municipality and its 
officers, employees, and agents for damages resulting from its 
torts and those of its officers, employees, and agents, 
including torts specified in section 466.03 for which the 
municipality is immune from liability.  The insurance may 
provide protection in excess of the limit of liability imposed 
by section 466.04.  If the a municipality other than a school 
district has the authority to levy taxes, the premium costs for 
such insurance may be levied in excess of any per capita or 
millage tax limitation imposed by statute or charter.  However, 
a school district may not levy pursuant to this section for 
premium costs for motor vehicle insurance protecting against 
injuries or damages arising out of the operation of district 
owned, operated, leased, or controlled vehicles for the 
transportation of pupils for purposes for which state aid is 
authorized under section 124.223, or for purposes for which the 
district is authorized to levy under section 275.125, 
subdivision 5d.  Any independent board or commission in the 
municipality having authority to disburse funds for a particular 
municipal function without approval of the governing body may 
similarly procure liability insurance with respect to the field 
of its operation.  The procurement of such insurance constitutes 
a waiver of the defense of governmental immunity to the extent 
of the liability stated in the policy but has no effect on the 
liability of the municipality beyond the coverage so provided. 
    Sec. 23.  [MILL RATE ADJUSTMENT AID.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this section 
the following terms have the meanings given them. 
    "Fiscal year 1988 qualifying mills" means the sum of a 
district's basic foundation levy, tier levies, declining pupil 
unit levy, summer program levy, interdistrict cooperation levy 
and liability insurance levy for the 1987-1988 school year 
divided by the district's 1985 adjusted assessed valuation. 
    "Fiscal year 1989 qualifying mills" means the sum of a 
district's maximum general education levy and supplemental levy 
for the 1988-1989 school year divided by the district's 1986 
adjusted assessed valuation. 
    "Excess foundation mill increase" is the greater of zero or 
the result obtained by subtracting the fiscal year 1988 
qualifying mills plus 0.002 from the fiscal year 1989 qualifying 
mills. 
    Subd. 2.  [MILL RATE ADJUSTMENT AID.] For the 1988-1989 
school year a district shall receive mill rate adjustment aid 
equal to one-half of the excess foundation mill increase times 
the 1986 adjusted assessed valuation. 
    Subd. 3.  [LEVY REDUCTION; MILL RATE ADJUSTMENT AID.] For 
any district that will receive mill rate adjustment aid 
according to subdivision 2, the general education levy 
limitation for the 1988-1989 school year shall be reduced by the 
amount of the mill rate adjustment aid. 
    Sec. 24.  [124A.30] [STATEWIDE AVERAGE REVENUE.] 
    By October 1 of each year the commissioner shall estimate 
the statewide average foundation revenue or general education 
revenue per actual pupil unit and provide that information to 
all school districts. 
    Sec. 25.  [NONCOMPLIANCE WITH PAY EQUITY.] 
    Subdivision 1.  [1987 REPORT.] A school district that 
employs ten or more people and that did not submit a report 
according to Minnesota Statutes, section 471.998, shall submit a 
report by October 1, 1987, to the commissioner of employee 
relations.  The report must include: 
    (1) a summary of the results of the district's study of its 
need to establish equitable compensation for its employees; 
    (2) the amount of the total annual payroll of the district, 
and the annual cost of implementing equitable compensation; and 
    (3) the plan for implementing equitable compensation for 
the employees, including a timetable for stages of 
implementation.  The plan must provide for complete 
implementation not later than December 31, 1991.  The plan does 
not have to contain a market study. 
    Subd. 2.  [TOTAL COST FREEZE.] Any district that does not 
comply with subdivision 1, must not expend for the total costs 
of district administration and supervision more during the 
1987-1988 school year than it did during the 1986-1987 school 
year.  
    Administration and supervision costs include all costs 
related to the school board, office of the superintendent, 
central office, district support services, and administrative 
and supervisory staff.  It includes all costs related to the 
administration and supervision of elementary education, 
secondary education, special education, vocational education, 
community education, food service, transportation services, 
building operations and maintenance, and other programs.  
    It does not include principals, assistant principals, 
direct costs of classroom teaching, and professional support 
services for pupils such as library, social work, health, and 
counseling.  
    The costs shall be determined according to the uniform 
financial accounting and reporting categories of district and 
school administration, district support services, and all 
executive and managerial salaries and their related 
expenditures.  Expenditures related to principals and assistant 
principals must not be included in any category.  
    Subd. 3.  [AID REDUCTION FOR ADMINISTRATION COSTS.] By 
October 1, 1987, the commissioner of employee relations shall 
certify to the commissioner of education the school districts 
that have not complied with subdivision 1.  For each of these 
school districts, the commissioner of education shall reduce 
foundation aid for the 1988-1989 school year by an amount equal 
to five percent of the district's administration costs for the 
1986-1987 school year.  If the reduction exceeds the district's 
foundation aid, the reduction shall be made from other aids paid 
to the district. 
    Sec. 26.  [APPROPRIATION.] 
    Subdivision 1.  [TO DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [FOUNDATION AID.] For foundation aid there is 
appropriated:  
    $851,283,900 ..... 1988, 
    $126,482,100 ..... 1989. 
    The appropriation for aid for fiscal year 1988 includes 
$121,712,400 for aid for fiscal year 1987 payable in fiscal year 
1988 and $729,571,500 for aid for fiscal year 1988 payable in 
fiscal year 1989.  
    The appropriation for aid for fiscal year 1989 is for aid 
for fiscal year 1988 payable in fiscal year 1989.  
    Subd. 3.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
general and supplemental education aid there is appropriated:  
    $960,483,600 ..... 1989.  
    The appropriation is for aid for fiscal year 1989 payable 
in fiscal year 1989. 
    Subd. 4.  [TEACHER RETIREMENT AND FICA AID.] For teacher 
retirement and FICA aid there is appropriated:  
    $236,700,000 ..... 1988, 
    $ 35,775,000 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$33,975,000 for aid for fiscal year 1987 payable in fiscal year 
1988 and $202,725,000 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 is for aid 
for fiscal year 1988 payable in fiscal year 1989.  
    The appropriations are based on an aid entitlement of 
$238,500,000 for fiscal year 1988.  
    Subd. 5.  [SUMMER PROGRAMS.] For summer program aid 
according to Minnesota Statutes, section 124A.033, subdivision 
3, there is appropriated:  
    $8,177,800 ..... 1988. 
    The appropriation for fiscal year 1988 is for aid for 
programs in summer 1987. 
    Sec. 27.  [REPEALER.] 
    Subdivision 1.  [JUNE 30, 1987.] Minnesota Statutes 1986, 
sections 124.185; 124.65; 124.66; 124A.02, subdivisions 2, 7, 
and 14; 124A.03, subdivisions 1, 1a, 3, 4, and 6; 124A.06, 
subdivision 3a; 124A.08, subdivision 3a; 124A.10, subdivision 
3a; 124A.12, subdivision 3a; 124A.14, subdivision 5a; 124A.20, 
subdivision 2; 129B.01; 129B.02; 129B.04; 129B.05; 129B.32, 
subdivisions 2 and 5; 129B.33; 129B.36; and 275.125, 
subdivisions 3 and 8a, are repealed June 30, 1987. 
    Subd. 2.  [MAY 30, 1988.] Minnesota Statutes 1986, section 
124A.033, is repealed May 30, 1988.  
    Subd. 3.  [JUNE 30, 1988.] Minnesota Statutes 1986, 
sections 124.17, subdivisions 1a and 2d; 124.2161; 124.2162; 
124.2163; 124.246; 124.247; 124.272; 124.275; 124A.01; 124A.02, 
subdivisions 5, 6, 9, 11, 12, and 13; 124A.035, subdivision 1; 
124A.06, subdivisions 1, 1a, 1b, 2, and 4; 124A.08, subdivisions 
1, 2, 4, and 5; 124A.10, subdivisions 1, 2, and 4; 124A.12, 
subdivisions 1, 2, and 4; 124A.14, subdivisions 1, 2, 3, 4, 5, 
and 6; 124A.16; 124A.20, subdivisions 1 and 3; 124A.21; 126.031, 
subdivision 2; 126.60; 126.62; 126.64; 129B.43, subdivisions 2, 
3, and 6; 129B.61; 129B.62; 129B.63; 129B.64; 129B.65; 129B.66; 
and 129B.67 are repealed June 30, 1988.  
    Subd. 4.  [EFFECT OF REPEALER.] According to Minnesota 
Statutes, section 645.35, the repeal of the sections listed in 
this section does not affect the right of a school district to 
receive nor the obligation of the commissioner of education to 
pay aids payable in fiscal year 1989, that are attributable to 
the 1987-1988 school year under or by virtue of the sections 
repealed. 
    Sec. 28.  [EFFECTIVE DATE.] 
    Sections 2, 11, 12, 13, 14, 15, 16, 17, and 18 are 
effective for revenue for the 1988-1989 school year and 
thereafter. 

                                ARTICLE 2

                             TRANSPORTATION
    Section 1.  Minnesota Statutes 1986, section 124.223, is 
amended to read:  
    124.223 [TRANSPORTATION AID AUTHORIZATION.] 
    School transportation and related services for which state 
transportation aid is authorized are: 
    (1) [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] Transportation 
or board of resident elementary pupils who reside one mile or 
more from the public schools which they could attend; 
transportation or board of resident secondary pupils who reside 
two miles or more from the public schools which they could 
attend; transportation to, from, or between the schools the 
resident pupils attend pursuant to a program approved by the 
commissioner of education; transportation of resident elementary 
pupils who reside one mile or more from a nonpublic school 
actually attended; transportation of resident secondary pupils 
who reside two miles or more from a nonpublic school actually 
attended; but with respect to transportation of pupils to 
nonpublic schools actually attended, only to the extent 
permitted by sections 123.76 to 123.79; 
     For the purposes of this clause, a district may designate a 
licensed day care facility or the residence of a relative as the 
home of a pupil for part or all of the day, if requested by the 
pupil's parent or guardian and if that facility or residence is 
within the attendance area of the school the pupil attends.  
    (2) [OUTSIDE DISTRICT.] Transportation to and from or board 
and lodging in another district, of resident pupils of a 
district without a secondary school; the pupils may attend a 
classified secondary school in another district and shall 
receive board and lodging in or transportation to and from a 
district having a classified secondary school at the expense of 
the district of the pupil's residence; 
    (3) [SECONDARY VOCATIONAL CENTERS.] Transportation to and 
from a state board approved secondary vocational center for 
secondary vocational classes for resident pupils of any of the 
districts who are members of or participating in programs at 
that center; 
    (4) [HANDICAPPED.] Transportation or board and lodging of a 
handicapped pupil when that pupil cannot be transported on a 
regular school bus, the conveying of handicapped pupils between 
home and school and within the school plant, necessary 
transportation of handicapped pupils from home or from school to 
other buildings, including centers such as developmental 
achievement centers, hospitals and treatment centers where 
special instruction or services required by section 120.17 are 
provided, within or outside the district where services are 
provided, and necessary transportation for resident handicapped 
pupils required by section 120.17, subdivision 4a.  
Transportation of handicapped pupils between home and school 
shall not be subject to any distance requirement for children 
not yet enrolled in kindergarten or to the requirement in clause 
(1) that elementary pupils reside at least one mile from school 
and secondary pupils reside at least two miles from school in 
order for the transportation to qualify for aid; 
    (5) [BOARD AND LODGING; NONRESIDENT HANDICAPPED.] When 
necessary, board and lodging for nonresident handicapped pupils 
in a district maintaining special classes; 
    (6) [SHARED TIME.] Transportation from one educational 
facility to another within the district for resident pupils 
enrolled on a shared time basis in educational programs approved 
by the commissioner of education, and necessary transportation 
required by section 120.17, subdivision 9 for resident 
handicapped pupils who are provided special instruction and 
services on a shared time basis; 
    (7) [FARIBAULT STATE SCHOOLS ACADEMIES.] Transportation for 
residents to and from the Minnesota school state academy for the 
deaf or the Minnesota braille and sight-saving school state 
academy for the blind; 
    (8) [SUMMER INSTRUCTIONAL PROGRAMS.] Services described in 
clauses (1) to (7) and (9) and (10) when provided in conjunction 
with a summer program eligible for aid and levy under sections 
124A.03 and 124A.033; 
    (9) [COOPERATIVE ACADEMIC AND VOCATIONAL.] Transportation 
to, from or between educational facilities located in any of two 
or more school districts jointly offering academic classes 
approved by the commissioner or secondary vocational classes not 
provided at a secondary vocational center which are approved by 
the commissioner for resident pupils of any of these districts; 
and 
    (10) [NONPUBLIC SUPPORT SERVICES.] Necessary transportation 
within district boundaries between a nonpublic school and a 
public school or a neutral site for nonpublic school pupils who 
are provided pupil support services pursuant to section 123.935. 
    Sec. 2.  Minnesota Statutes 1986, section 124.225, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
    (1) all expenditures for transportation in the regular 
category, as defined in clause (e)(1), for which aid is 
authorized in section 124.223, plus 
    (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 12-1/2 percent per year of 
the cost of the fleet, plus 
    (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
    (4) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.44, subdivision 15, which were purchased after July 1, 1982 
for authorized transportation of pupils, with the prior approval 
of the commissioner, computed on a straight line basis at the 
rate of 20 percent per year of the cost of the type three school 
buses.  
    (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education, and adjusted pursuant 
to subdivision 7a. 
    (d) "Aid entitlement per FTE" means the adjusted authorized 
predicted cost per FTE, inflated pursuant to subdivision 7b.  
    (e) "Transportation category" means a category of 
transportation service provided to pupils.  For the 1984-1985 
and 1985-1986 school years, each category includes 
transportation provided during the regular school year and in 
conjunction with a summer program eligible for aid and levy 
under sections 124A.03 and 124A.033.  For purposes of this 
section, transportation categories for the 1984-1985 and 
1985-1986 school years are as follows: 
    (1) regular transportation is transportation services 
provided under section 124.223, clauses (1) and (2), excluding 
transportation between schools under section 124.223, clause (1);
    (2) nonregular transportation is transportation services 
provided between schools under section 124.223, clause (1); and 
transportation services provided under section 124.223, clauses 
(3), (4), (5), (6), (7), (9), and (10).  
    (1) For the purposes of this section, transportation 
categories for the 1986-1987 and 1987-1988 school year and 
thereafter years are as follows: 
    (1) (i) regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) and (2), excluding transportation between schools 
under section 124.223, clause (1); and 
    (2) (ii) nonregular transportation is transportation 
services provided between schools under section 124.223, clause 
(1); and transportation services provided under section 124.223, 
clauses (3), (4), (5), (6), (7), (8), (9), and (10). 
    (2) For purposes of this section, for the 1988-1989 school 
year and after: 
     (i) regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) and (2), excluding the following transportation 
services provided under section 124.223, clause (1):  
transportation between schools; noon transportation to and from 
school for kindergarten pupils attending half-day sessions; late 
transportation home from school for pupils involved in after 
school activities; transportation of pupils to and from schools 
located outside their normal attendance areas under the 
provisions of a plan for desegregation mandated by the state 
board of education or under court order; and 
    (ii) nonregular transportation is transportation services 
provided under section 124.223, clause (1) that are excluded 
from the regular category, and transportation services provided 
under section 124.223, clauses (3), (4), (5), (6), (7), (8), 
(9), and (10). 
    (f) "Pupil weighting factor" means the ratio of the actual 
district average cost per FTE in a particular transportation 
category in the base year to the actual district average cost 
per FTE in the regular transportation category in the base year. 
    (g) "Weighted FTE's" means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
    (h) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
    (i) (g) "Current year" means the school year for which aid 
will be paid.  
    (j) (h) "Base year" means the second school year preceding 
the school year for which aid will be paid.  
    (k) (i) "Base cost" for the 1984-1985 and 1985-1986 base 
years means the authorized regular transportation cost per FTE 
in the base year in the regular transportation category, 
excluding summer school transportation.  Base cost for the 
1986-1987 base year and after means the ratio of: 
    (1) the sum of: 
    (i) the authorized cost in the base year for regular 
transportation as defined in clause (b), plus 
    (ii) the actual cost in the base year for transportation to 
and from school of secondary pupils who live more than one mile 
but less than two miles from the public school that they could 
attend or from the nonpublic school actually attended, plus 
    (iii) the actual cost in the base year for transportation 
costs which are necessary because of extraordinary traffic 
hazards, 
    (2) to the sum of: 
    (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
    (ii) the number of secondary pupils transported to and from 
school in the base year who live more than one mile but less 
than two miles from the public school that they could attend or 
from the nonpublic school actually attended, plus 
    (iii) the number of pupils residing less than one mile from 
school who were transported to and from school in the base year 
because of extraordinary traffic hazards. 
    (l) (j) "Predicted base cost" means the base cost as 
predicted by subdivision 3.  
    Sec. 3.  Minnesota Statutes 1986, section 124.225, 
subdivision 4b, is amended to read:  
    Subd. 4b.  [FORMULA TERMS, 1984-1985 AND AFTER.] (a) To 
predict the logarithm of the base cost for each district 
pursuant to subdivision 3 for each school year the 1985-1986 
base year, the multiple regression formula shall use the 
following terms for each district: 
    (1) the logarithm of the lesser of (a) the number of 
authorized FTE's per square mile transported by the district in 
the regular transportation category, or (b) 200; 
    (2) whether the district is nonrural, based upon criteria 
established by the department of education; and 
    (3) the logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district.  
    (b) To predict the logarithm of the base cost for each 
district according to subdivision 3 for the 1986-1987 base year 
and thereafter, the multiple regression formula shall use the 
following terms for each district: 
    (1) the logarithm of the lesser of: 
    (A) 200; or 
    (B) the quotient obtained by dividing the sum of: 
    (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
    (ii) the number of secondary pupils transported to and from 
school in the base year who live more than one mile but less 
than two miles from the public school that they could attend or 
from the nonpublic school actually attended, plus 
    (iii) the number of pupils residing less than one mile from 
school who were transported to and from school in the base year 
because of extraordinary traffic hazards, 
    (C) by the area of the district in square miles; 
    (2) whether the district is nonrural, based upon criteria 
established by the department of education; and 
    (3) the logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district. 
    Sec. 4.  Minnesota Statutes 1986, section 124.225, 
subdivision 7b, is amended to read:  
    Subd. 7b.  [INFLATION FACTORS.] The adjusted authorized 
predicted cost per FTE determined for a district under 
subdivision 7a for the base year shall be increased by 10.3 6.0 
percent to determine the district's aid entitlement per FTE for 
the 1984-1985 1986-1987 school year, by 8.9 4.9 percent to 
determine the district's aid entitlement per FTE for 
the 1985-1986 1987-1988 school year, and by 6.0 4.1 percent to 
determine the district's aid entitlement per FTE for 
the 1986-1987 1988-1989 school year. 
    Sec. 5.  Minnesota Statutes 1986, section 124.225, 
subdivision 8a, is amended to read:  
    Subd. 8a.  [AID.] For the 1984-1985 and 1985-1986 school 
years a district's transportation aid shall be equal to the sum 
of its basic transportation aid pursuant to subdivision 8b, its 
nonregular transportation aid pursuant to subdivision 8i, and 
its nonregular transportation levy equalization aid pursuant to 
subdivision 8j, minus its contracted services aid reduction 
pursuant to subdivision 8k, minus the amount raised by 1.75 
mills times the adjusted assessed valuation which is used to 
compute the transportation levy limitation for the levy 
attributable to that school year.  A district may levy less than 
the amount raised by 1.75 mills.  Transportation aid shall be 
computed as if the district had levied the amount raised by 1.75 
mills.  
    (a) For the 1986-1987 and 1987-1988 school year and each 
year thereafter years, a district's transportation aid shall be 
equal to the sum of its basic transportation aid pursuant to 
subdivision 8b, its nonregular transportation aid pursuant to 
subdivision 8i, and its nonregular transportation levy 
equalization aid pursuant to subdivision 8j, minus its 
contracted services aid reduction pursuant to subdivision 8k, 
minus the amount raised by 2.25 mills times the adjusted 
assessed valuation which is used to compute the transportation 
levy limitation for the levy attributable to that school year.  
A district may levy less than the amount raised by 2.25 mills.  
Transportation aid shall be computed as if the district had 
levied the amount raised by 2.25 mills. 
    (b) For the 1988-1989 school year and thereafter, a 
district's transportation aid is equal to the sum of its basic 
transportation aid under subdivision 8b, its nonregular 
transportation aid under subdivision 8i, and its nonregular 
transportation levy equalization aid under subdivision 8j, minus 
its contracted services aid reduction under subdivision 8k, 
minus its basic transportation levy limitation for the levy 
attributable to that school year under section 275.125, 
subdivision 5. 
    (c) If the total appropriation for transportation aid for 
any fiscal year is insufficient to pay all districts the full 
amount of aid earned, the department of education shall reduce 
each district's aid in proportion to the number of resident 
pupils in average daily membership in the district to the state 
total average daily membership, and shall reduce the aid 
entitlement of off-formula districts in the same proportion.  
    Sec. 6.  Minnesota Statutes 1986, section 124.225, 
subdivision 8i, is amended to read:  
    Subd. 8i.  [NONREGULAR TRANSPORTATION AID.] For the 
1984-1985 school year and each year thereafter, (a) A district's 
nonregular transportation aid shall be determined pursuant 
according to this subdivision.  
     (b) For the 1986-1987 and 1987-1988 school years, 
nonregular transportation aid shall equal (a) (1) 20 percent of 
the first $10 of actual cost in the current year for nonregular 
transportation services per total pupil unit, plus 40 percent of 
the next $10 of actual cost in the current year for nonregular 
transportation services per total pupil unit, plus 60 percent of 
the actual cost in the current year for nonregular 
transportation services per total pupil unit which exceeds $20, 
times (b) (2) the number of total pupil units in the district in 
the current year.  
    (c) For the 1988-1989 school year and thereafter, 
nonregular transportation aid equals (1) 60 percent of the 
actual cost in the current year for nonregular transportation 
services per total pupil unit which exceeds $30, times (2) the 
number of total pupil units in the district in the current year. 
    Sec. 7.  Minnesota Statutes 1986, section 124.225, 
subdivision 10, is amended to read:  
    Subd. 10.  [DEPRECIATION.] Any school district which owns 
school buses or mobile units shall transfer annually from the 
unappropriated fund balance account in its transportation fund 
to the appropriated fund balance account for bus purchases in 
its transportation fund at least an amount equal to 12-1/2 
percent of the original cost of each type one or type two bus or 
mobile unit until the original cost of each type one or type two 
bus or mobile unit is fully amortized, plus 20 percent of the 
original cost of each type three bus included in the district's 
authorized cost under the provisions of subdivision 1, clause 
(b)(4), until the original cost of each type three bus is fully 
amortized, plus 33-1/3 percent of the cost to the district as of 
July 1 of each year for school bus reconditioning done by the 
department of corrections until the cost of the reconditioning 
is fully amortized; provided, if the district's transportation 
aid is reduced pursuant to subdivision 8a because the 
appropriation for that year is insufficient, this amount shall 
be reduced in proportion to the reduction pursuant to 
subdivision 8a as a percentage of the sum of 
    (1) the district's total transportation aid without the 
reduction pursuant to subdivision 8a, plus 
    (2) for fiscal years 1985 and 1986 an amount equal to 1.75 
mills times the adjusted assessed valuation of the district for 
the preceding year, and for fiscal year 1987 and thereafter, 
2.25 mills times the adjusted assessed valuation of the district 
for the preceding year the district's basic transportation levy 
limitation under section 275.125, subdivision 5, plus 
    (3) the district's contract services aid reduction under 
subdivision 8k, plus 
    (4) the district's nonregular transportation levy 
limitation under section 275.125, subdivision 5c.  
    Sec. 8.  Minnesota Statutes 1986, section 275.125, 
subdivision 5, is amended to read:  
    Subd. 5.  [BASIC TRANSPORTATION LEVY.] For school 
transportation services, a school district may levy an amount 
not to exceed the amount raised by a levy of 2.25 mills times 
the adjusted assessed valuation of the taxable property of the 
district for the preceding year.  Each year, a school district 
may levy for school transportation services an amount not to 
exceed the amount raised by the basic transportation mill rate 
times the adjusted assessed valuation of the district for the 
preceding year.  The commissioner of revenue shall establish the 
basic transportation mill rate and certify it to the 
commissioner of education by August 1 of each year for levies 
payable in the following year.  The basic transportation mill 
rate shall be a rate, rounded up to the nearest hundredth of a 
mill, that, when applied to the adjusted assessed valuation of 
taxable property for all districts, raises the amount specified 
in this subdivision.  The basic transportation mill rate for the 
1987 payable 1988 levies and for transportation aid for the 
1988-1989 school year shall be the rate that raises $71,256,100. 
The basic transportation mill rate certified by the commissioner 
of revenue must not be changed due to changes or corrections 
made to a district's adjusted assessed valuation after the mill 
rate has been certified. 
    Sec. 9.  Minnesota Statutes 1986, section 275.125, 
subdivision 5c, is amended to read:  
    Subd. 5c.  [NONREGULAR TRANSPORTATION LEVY.] A school 
district may also make a levy for unreimbursed nonregular 
transportation costs pursuant to this subdivision.  The amount 
of the levy shall not exceed the product of:  
    (a) the district's unreimbursed nonregular transportation 
revenue determined pursuant to section 124.225, subdivision 8j, 
clause (a), times 
    (b) the lesser of 
    (i) one, or 
    (ii) the ratio of the district's adjusted assessed 
valuation for the preceding year per total pupil unit in the 
school year to which the levy is attributable, to the equalizing 
factor for the school year to which the levy is 
attributable $83,800.  
    Sec. 10.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 5e.  [EXCESS TRANSPORTATION LEVY.] A school district 
may make a levy for excess transportation costs according to 
this subdivision.  The amount of the levy shall be the result of 
the following computation: 
    (a) Multiply the base cost computed using data for the 
current school year according to section 124.225, subdivision 1, 
paragraph (k), by the sum of the number of secondary pupils 
transported to and from school in the current year who live more 
than one mile but less than two miles from the public school 
which they could attend or the nonpublic school actually 
attended, plus the number of pupils residing less than one mile 
from school who were transported to and from school in the 
current year due to extraordinary traffic hazards. 
    (b) Add to the result in paragraph (a) the actual cost in 
the current year of other related services that are necessary 
because of extraordinary traffic hazards. 
    Sec. 11.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 5f.  [BUS PURCHASE LEVY.] A school district may levy 
the amount necessary to eliminate any projected deficit in the 
reserved fund balance account for bus purchases in its 
transportation fund as of June 30 of the school year beginning 
in the calendar year following the calendar year the levy is 
certified. 
    Sec. 12.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 5g.  [CONTRACTED SERVICES LEVY.] A school district 
may levy an amount equal to the aid subtraction computed 
according to section 124.225, subdivision 8k, for the school 
year beginning in the year the levy is certified. 
    Sec. 13.  [APPROPRIATIONS.] 
    Subdivision 1.  [TO DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
there is appropriated:  
    $90,477,000 ..... 1988, 
    $87,334,800 ..... 1989. 
    The appropriation for aid for fiscal year 1988 includes 
$12,194,300 for aid for fiscal year 1987 payable in fiscal year 
1988 and $78,282,700 for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$13,814,600 for aid for fiscal year 1988 payable in fiscal year 
1989 and $73,520,200 for fiscal year 1989 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$92,097,200 for fiscal year 1988 and $86,494,300 for fiscal year 
1989.  
    Subd. 3.  [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 
OPTIONS.] For transportation of pupils who attend post-secondary 
institutions according to Minnesota Statutes, section 123.3514, 
there is appropriated:  
    $75,000 ..... 1988, 
    $75,000 ..... 1989.  
    The commissioner shall allocate this appropriation among 
school districts based upon guidelines adopted by the state 
board of education under Minnesota Statutes, section 123.3514, 
subdivision 8.  
    Subd. 4.  [DESEGREGATION TRANSPORTATION GRANTS.] For 
transportation grants to districts implementing desegregation 
plans mandated by the state board: 
    $5,234,200 ..... 1988. 
    Of this amount, $1,966,500 shall be allocated to 
independent school district No. 625, St. Paul; and $3,267,700 to 
special school district No. 1, Minneapolis.  These amounts may 
be used only for unreimbursed costs for desegregation 
transportation during the 1986-1987 and 1987-1988 school years. 
    Sec. 14.  [REPEALER.] 
    Minnesota Statutes 1986, sections 124.225, subdivision 1a, 
and 275.125, subdivision 5d, are repealed. 

                                ARTICLE 3

                            SPECIAL PROGRAMS
    Section 1.  Minnesota Statutes 1986, section 120.03, 
subdivision 1, is amended to read:  
    Subdivision 1.  Every child who has a hearing impairment, 
visual handicap, speech or language impairment, physical 
handicap, other health impairment, mental handicap, 
emotional/behavioral disorder, specific learning disability, or 
deaf/blind handicap and needs special instruction and services, 
as determined by the standards of the state board, is a 
handicapped child.  In addition, every child under age five who 
needs special instruction and services, as determined by the 
standards of the state board, because the child has a 
substantial delay or has an identifiable physical or mental 
condition known to hinder normal development is a handicapped 
child. 
    Sec. 2.  Minnesota Statutes 1986, section 120.17, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SPECIAL INSTRUCTION FOR HANDICAPPED 
CHILDREN.] Every district shall provide special instruction and 
services, either within the district or in another district, for 
handicapped children of school age who are residents of the 
district and who are handicapped as set forth in section 
120.03.  School age means the ages of three to Special 
instruction and services must be provided from birth until 
September 1 after the handicapped child becomes 21 years for 
children who are handicapped as defined in section 120.03 
and old but shall not extend beyond secondary school or its 
equivalent.  For purposes of this subdivision, the age of a 
handicapped child shall be the age as of September 1 of the 
calendar year in which the school year for which the child seeks 
special instruction and services commences.  Every district may 
provide special instruction and services for handicapped 
children who have not attained school age.  Local health, 
education, and social service agencies shall refer children from 
under age three to five who are known to need or suspected of 
needing special instruction and services to the school 
district.  A school district is encouraged to contract with a 
developmental achievement center when the center is cost 
efficient for the district and when the center provides 
continuity of special instruction and services for handicapped 
children under the age of five and their families.  Districts 
with less than the minimum number of eligible handicapped 
children as determined by the state board shall cooperate with 
other districts to maintain a full range of programs for 
education and services for handicapped children.  This 
subdivision does not alter the compulsory attendance 
requirements of section 120.10. 
     Sec. 3.  Minnesota Statutes 1986, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [HIGH SCHOOL DIPLOMA.] Upon completion of 
secondary school or the equivalent, a handicapped pupil who 
satisfactorily attains the objectives in the pupil's individual 
education plan shall be granted a high school diploma that is 
identical to the diploma granted to a nonhandicapped pupil. 
    Sec. 4.  Minnesota Statutes 1986, section 120.17, 
subdivision 2, is amended to read:  
    Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] Special 
instruction and services for handicapped children must be based 
on the assessment and individual education plan.  The 
instruction and services may be provided by one or more of the 
following methods: 
    (a) in connection with attending regular elementary and 
secondary school classes; 
    (b) establishment of special classes; 
    (c) at the home or bedside of the child; 
    (d) in other districts; 
    (e) instruction and services in by special education 
cooperative centers established under this section, or in 
another member district of the cooperative center to which the 
resident district of the handicapped child belongs; 
    (f) in a state university laboratory school or a University 
of Minnesota laboratory school; 
    (g) in a state residential school or a school department of 
a state institution approved by the commissioner; 
    (h) (g) in other states; 
    (i) (h) by contracting with public, private or voluntary 
agencies; 
    (j) (i) for children under age five and their families, 
programs and services established through collaborative efforts 
with other agencies or within the district; and 
    (j) for children under age five and their families, 
programs in which handicapped children are served with 
nonhandicapped children; and 
    (k) any other method approved by the commissioner. 
    Preference shall be given to providing special instruction 
and services to children under age three and their families in 
the residence of the child with the parent or primary caregiver, 
or both, present. 
    The primary responsibility for the education of a 
handicapped child shall remain with the district of the child's 
residence regardless of which method of providing special 
instruction and services is used.  The district of residence 
must inform the parents of the child about the methods of 
instruction that are available. 
    Sec. 5.  Minnesota Statutes 1986, section 120.17, 
subdivision 3, is amended to read:  
    Subd. 3.  [RULES OF THE STATE BOARD.] The state board shall 
promulgate rules relative to qualifications of essential 
personnel, courses of study, methods of instruction, pupil 
eligibility, size of classes, rooms, equipment, supervision, 
parent consultation, and any other rules it deems necessary for 
instruction of handicapped children.  These rules shall provide 
standards and procedures appropriate for the implementation of 
and within the limitations of subdivisions 3a and 3b.  These 
rules shall also provide standards for the discipline, control, 
management and protection of handicapped children.  The state 
board shall not adopt rules for pupils served in level 1, 2, or 
3, as defined in Minnesota Rules, part 3525.2340, establishing 
either case loads or the maximum number of pupils that may be 
assigned to special education teachers.  The state board, in 
consultation with the departments of health and human 
services, may adopt emergency rules and shall adopt permanent 
rules for instruction and services for children from under age 
three to five and their families.  Until June 30, 1988, a 
developmental achievement center contracting with under contract 
to a school district to provide special instruction and services 
is eligible for variance from rules relating to personnel 
licensure.  Until June 30, 1988, the licensure variance for a 
developmental achievement center shall be granted according to 
the same procedures and criteria used for granting a variance to 
a school district.  The state board shall, according to section 
14.05, subdivision 4, notify a district applying for a variance 
from the rules within 45 calendar days of receiving the request 
whether the request for the variance has been granted or 
denied.  If a request is denied, the board shall specify the 
program standards used to evaluate the request and the reasons 
for denying the request.  
    Sec. 6.  Minnesota Statutes 1986, section 120.17, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
shall ensure that: 
    (a) (1) all handicapped children are provided the special 
instruction and services which are appropriate to their needs;.  
The student's needs and the special education instruction and 
services to be provided shall be agreed upon through the 
development of an individual education plan.  The plan shall 
address the student's need to develop skills to live and work as 
independently as possible within the community.  By grade nine 
or age 14, the plan shall address the student's needs for 
transition from secondary services to post-secondary education 
and training, employment, and community living; 
    (b) (2) handicapped children from under age three to five 
and their families are provided special instruction and services 
appropriate to the child's level of functioning and needs; 
    (c) (3) handicapped children and their parents or guardians 
are guaranteed procedural safeguards and the right to 
participate in decisions involving identification, assessment 
and educational placement of handicapped children; 
    (d) (4) to the maximum extent appropriate, handicapped 
children, including those in public or private institutions or 
other care facilities, are educated with children who are not 
handicapped, and that special classes, separate schooling, or 
other removal of handicapped children from the regular 
educational environment occurs only when and to the extent that 
the nature or severity of the handicap is such that education in 
regular classes with the use of supplementary services cannot be 
achieved satisfactorily; 
    (e) (5) in accordance with recognized professional 
standards, testing and evaluation materials and procedures 
utilized for the purposes of classification and placement of 
handicapped children are selected and administered so as not to 
be racially or culturally discriminatory; and 
    (f) (6) the rights of the child are protected when the 
parents or guardians are not known or not available, or the 
child is a ward of the state. 
    Sec. 7.  Minnesota Statutes 1986, section 120.17, 
subdivision 3b, is amended to read:  
    Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
utilize at least the following procedures for decisions 
involving identification, assessment and educational placement 
of handicapped children: 
    (a) Parents and guardians shall receive prior written 
notice of:  
    (1) any proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
    (2) a proposed placement of their child in, transfer from 
or to, or denial of placement in a special education program; or 
    (3) the proposed provision, addition, denial or removal of 
special education services for their child; 
    (b) The district shall not proceed with the initial formal 
assessment of a child, the initial placement of a child in a 
special education program or the initial provision of special 
education services for a child without the prior written consent 
of the child's parent or guardian.  The refusal of a parent or 
guardian to consent may be overridden by the decision in a 
hearing held pursuant to clause (d) at the district's initiative 
after at least one attempt to obtain this consent through a 
conciliation conference held pursuant to clause (c); 
    (c) Parents and guardians shall have an opportunity to meet 
with appropriate district staff in at least one conciliation 
conference if they object to any proposal of which they are 
notified pursuant to clause (a).  The conciliation process shall 
not be used to deny or delay a parent or guardian's right to a 
due process hearing.  If the parent or guardian refuses efforts 
by the district to conciliate the dispute with the school 
district, the requirement of an opportunity for conciliation 
shall be deemed to be satisfied; 
    (d) Parents, guardians and the district shall have an 
opportunity to obtain an impartial due process hearing initiated 
and conducted in the school district where the child resides, if 
after at least one conciliation conference the parent or 
guardian continues to object to:  
    (1) a proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
    (2) the proposed placement of their child in, or transfer 
of their child to a special education program; 
    (3) the proposed denial of placement of their child in a 
special education program or the transfer of their child from a 
special education program; 
    (4) the proposed provision or addition of special education 
services for their child; or 
    (5) the proposed denial or removal of special education 
services for their child. 
    At least five calendar days before the hearing, the 
objecting party shall provide the other party with a brief 
written statement of the objection and the reasons for the 
objection.  
    The hearing shall take place before an impartial hearing 
officer mutually agreed to by the school board and the parent or 
guardian.  If the school board and the parent or guardian are 
unable to agree on a hearing officer, the school board shall 
request the commissioner to appoint a hearing officer.  The 
hearing officer shall not be a school board member or employee 
of the school district where the child resides or of the child's 
school district of residence, an employee of any other public 
agency involved in the education or care of the child, or any 
person with a personal or professional interest which would 
conflict with the person's objectivity at the hearing.  A person 
who otherwise qualifies as a hearing officer is not an employee 
of the district solely because the person is paid by the 
district to serve as a hearing officer.  If the hearing officer 
requests an independent educational assessment of a child, the 
cost of the assessment shall be at district expense.  The 
proceedings shall be recorded and preserved, at the expense of 
the school district, pending ultimate disposition of the action. 
    (e) The decision of the hearing officer pursuant to clause 
(d) shall be rendered not more than 45 calendar days from the 
date of the receipt of the request for the hearing.  A hearing 
officer may grant specific extensions of time beyond the 45-day 
period at the request of either party.  The decision of the 
hearing officer shall be binding on all parties unless appealed 
to the hearing review officer by the parent, guardian, or the 
school board of the district where the child resides pursuant to 
clause (f). 
    The local decision shall: 
    (1) be in writing; 
    (2) state the controlling facts upon which the decision is 
made in sufficient detail to apprise the parties and the hearing 
review officer of the basis and reason for the decision; 
    (3) state whether the special education program or special 
education services appropriate to the child's needs can be 
reasonably provided within the resources available to the 
responsible district or districts; 
    (4) state the amount and source of any additional district 
expenditure necessary to implement the decision; and 
    (5) be based on the standards set forth in subdivision 3a 
and the rules of the state board. 
    (f) Any local decision issued pursuant to clauses (d) and 
(e) may be appealed to the hearing review officer within 15 
calendar days of receipt of that written decision, by the 
parent, guardian, or the school board of the district where the 
child resides. 
    If the decision is appealed, a written transcript of the 
hearing shall be made by the school district and shall be 
accessible to the parties involved within five calendar days of 
the filing of the appeal.  The hearing review officer shall 
issue a final decision based on an impartial review of the local 
decision and the entire record within 30 calendar days after the 
filing of the appeal.  The hearing review officer shall seek 
additional evidence if necessary and may afford the parties an 
opportunity for written or oral argument; provided any hearing 
held to seek additional evidence shall be an impartial due 
process hearing but shall be deemed not to be a contested case 
hearing for purposes of chapter 14.  The hearing review officer 
may grant specific extensions of time beyond the 30-day period 
at the request of any party. 
    The final decision shall: 
    (1) be in writing; 
    (2) include findings and conclusions; and 
    (3) be based upon the standards set forth in subdivision 3a 
and in the rules of the state board. 
    (g) The decision of the hearing review officer shall be 
final unless appealed by the parent or guardian or school board 
to the court of appeals.  The judicial review shall be in 
accordance with chapter 14.  
    (h) The commissioner of education, having delegated general 
supervision of special education to the appropriate staff, shall 
be the hearing review officer except for appeals in which: 
    (1) the commissioner has a personal interest in or specific 
involvement with the student who is a party to the hearing;  
    (2) the commissioner has been employed as an administrator 
by the district that is a party to the hearing;  
    (3) the commissioner has been involved in the selection of 
the administrators of the district that is a party to the 
hearing;  
    (4) the commissioner has a personal, economic, or 
professional interest in the outcome of the hearing other than 
the proper administration of the federal and state laws, rules, 
and policies;  
    (5) the appeal challenges a state or local policy which was 
developed with substantial involvement of the commissioner; or 
    (6) the appeal challenges the actions of a department 
employee or official.  
    For any appeal to which the above exceptions apply, the 
state board of education shall name an impartial and competent 
hearing review officer.  
    In all appeals, the parent or guardian of the handicapped 
student or the district that is a party to the hearing may 
challenge the impartiality or competence of the proposed hearing 
review officer by applying to the state board of education.  
    (i) Pending the completion of proceedings pursuant to this 
subdivision, unless the district and the parent or guardian of 
the child agree otherwise, the child shall remain in the child's 
current educational placement and shall not be denied initial 
admission to school. 
    (j) The child's school district of residence, if different 
from the district where the child actually resides, shall 
receive notice of and may be a party to any hearings or appeals 
pursuant to this subdivision. 
    Sec. 8.  Minnesota Statutes 1986, section 120.17, 
subdivision 5, is amended to read:  
    Subd. 5.  [SCHOOL OF PARENTS' CHOICE.] Nothing in this 
chapter shall be construed as preventing parents of a 
handicapped educable child from sending such child to a school 
of their choice, if they so elect, subject to admission 
standards and policies to be adopted pursuant according to the 
provisions of sections 128A.01 to 128A.07 chapter 128A, and all 
other provisions of chapters 120 to 129. 
    Sec. 9.  Minnesota Statutes 1986, section 120.17, 
subdivision 7a, is amended to read:  
    Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE HANDICAPPED.] 
Responsibility for special instruction and services for a 
visually disabled or hearing impaired child attending the 
Minnesota School state academy for the deaf or the 
Minnesota Braille and Sight-Saving School state academy for the 
blind shall be determined in the following manner: 
    (a) The legal residence of the child shall be the school 
district in which the child's parent or guardian resides. 
    (b) When it is determined pursuant to section 128A.05, 
subdivisions 1 or 2 that the child is entitled to attend either 
school, the state board shall provide the appropriate 
educational program for the child.  The state board shall make a 
tuition charge to the child's district of residence for the 
actual cost of providing the program; provided, however, that 
effective for the 1983-1984 school year and thereafter, the 
amount of tuition charged shall not exceed the sum of $1,000 
plus the foundation aid formula allowance of the district for 
that child, for an entire school year, or a prorated amount 
based on the portion of the school year for which the child is a 
resident of the district or is actually in membership in the 
program.  For purposes of this subdivision, "foundation aid 
formula allowance" shall have the meaning attributed to it in 
section 124.32, subdivision 1a.  The district of the child's 
residence shall pay the tuition and may claim foundation aid for 
the child.  The district of the child's residence shall not 
receive aid pursuant to section 124.32, subdivision 5, for 
tuition paid pursuant to this subdivision.  All tuition received 
by the state board shall be deposited in the state treasury. 
    (c) When it is determined that the child can benefit from 
public school enrollment but that the child should also remain 
in attendance at the applicable school, the school district 
where the institution is located shall provide an appropriate 
educational program for the child and shall make a tuition 
charge to the state board for the actual cost of providing the 
program, less any amount of aid received pursuant to section 
124.32.  The state board shall pay the tuition and other program 
costs including the unreimbursed transportation costs.  Aids for 
handicapped children shall be paid to the district providing the 
special instruction and services.  Special transportation shall 
be provided by the district providing the educational program 
and the state shall reimburse such district within the limits 
provided by law.  
    (d) Notwithstanding the provisions of clauses (b) and (c), 
the state board may agree to make a tuition charge for less than 
the amount specified in clause (b) for pupils attending the 
applicable school who are residents of the district where the 
institution is located and who do not board at the institution, 
if that district agrees to make a tuition charge to the state 
board for less than the amount specified in clause (c) for 
providing appropriate educational programs to pupils attending 
the applicable school. 
    (e) Notwithstanding the provisions of clauses (b) and (c), 
the state board may agree to supply staff from the 
Minnesota School state academy for the deaf and the 
Minnesota Braille and Sight-Saving School state academy for the 
blind to participate in the programs provided by the district 
where the institutions are located when the programs are 
provided to students in attendance at the state schools.  
    Sec. 10.  Minnesota Statutes 1986, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 11a.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
interagency coordinating council of 15 members is established.  
The members and the chair shall be appointed by the governor.  
The council shall be composed of at least three parents of 
handicapped children under age seven, a representative of each 
of the commissioners of education, health, and human services, 
three representatives of public or private providers of services 
for handicapped children under age five, one member of the 
senate, one member of the house of representatives, one 
representative of teacher preparation programs in early 
childhood-special education, at least one representative of 
advocacy organizations for handicapped children, and other 
members knowledgeable about handicapped children under age 
five.  Section 15.059 applies to the council, except that the 
council is permanent and does not expire.  The council shall 
meet at least quarterly.  
    The council shall address methods of implementing the state 
policy of developing and implementing comprehensive, 
coordinated, multidisciplinary interagency programs of early 
intervention services for handicapped children and their 
families. 
    The duties of the council include recommending policies to 
ensure a comprehensive and coordinated system of all state and 
local agency services for handicapped children under age five 
and their families.  The policies must address how to 
incorporate each agency's services into a unified state and 
local system of multidisciplinary assessment practices, 
individual intervention plans, comprehensive systems to find 
children in need of services, methods to improve public 
awareness, and assistance in determining the role of interagency 
early intervention committees.  
   It is the joint responsibility of county boards and school 
districts to coordinate, provide, and pay for appropriate 
services, and to facilitate payment for services from public and 
private sources.  Appropriate services must be determined in 
consultation with parents, physicians, and other educational, 
medical, health, and human services providers.  Appropriate 
services include family education and counseling, home visits, 
occupational and physical therapy, speech pathology, audiology, 
psychological services, case management, medical services for 
diagnostic and evaluation purposes, early identification, and 
screening, assessment, and health services necessary to enable 
handicapped children to benefit from early intervention 
services.  School districts must be the primary agency in this 
cooperative effort.  
    Each year by January 15 the council shall submit its 
recommendations to the education committees of the legislature, 
the governor, and the commissioners of education, health, and 
human services. 
    Sec. 11.  Minnesota Statutes 1986, section 120.17, 
subdivision 12, is amended to read:  
    Subd. 12.  [INTERAGENCY EARLY LEARNING INTERVENTION 
COMMITTEE.] A district, group of districts, or special education 
cooperative, in cooperation with the county or counties in which 
the district or cooperative is located, shall establish an 
interagency early learning intervention committee for 
handicapped children under age five and their families.  Members 
of the committee shall be representatives of local and regional 
health, education, and county human service 
agencies; developmental achievement centers county boards; 
school boards; early childhood family education programs; 
current service providers; parents of young handicapped 
children; and other private or public agencies as appropriate.  
The committee shall elect a chair from among its members and 
shall meet regularly at least quarterly.  The committee shall 
perform the following ongoing duties: 
    (1) identify current services and funding being provided 
within the community for handicapped children under the age of 
five and their families; 
    (2) establish and evaluate the identification, referral, 
and community learning systems to recommend, where necessary, 
alterations and improvements; 
    (3) facilitate the development of interagency individual 
education plans and individual service plans when necessary to 
appropriately serve handicapped children under the age of five 
and their families and recommend assignment of financial 
responsibilities to the appropriate agencies; 
    (4) implement a process for assuring that services involve 
cooperating agencies at all steps leading to individualized 
programs; 
    (5) review and comment on the early learning intervention 
section of the total special education system for the 
district and the county social services plan; and 
    (5) review and comment on the funding sources that 
currently exist for the services being provided to handicapped 
children under the age of five and their families in the area 
    (6) facilitate the development of a transitional plan if a 
service provider is not recommended to continue to provide 
services. 
    The departments of education, health, and human services 
are encouraged to provide assistance to the local agencies in 
developing cooperative plans for providing services. 
    Sec. 12.  Minnesota Statutes 1986, section 120.17, is 
amended by adding a subdivision to read:  
    Subd. 14.  [MAINTENANCE OF EFFORT.] A county human services 
agency or county board shall continue to provide services set 
forth in their county social service agency plan for handicapped 
children under age five and their families or as specified in 
the individual service plan and individual habilitation plan of 
each child.  Special instruction and services for which a 
handicapped child is eligible under this section are not the 
responsibility of the local human services agency or county 
board.  It is the joint responsibility of county boards and 
school districts to coordinate, provide, and pay for appropriate 
services not required under this section and to facilitate 
payment for services from public and private sources.  School 
districts and counties are encouraged to enter into agreements 
to cooperatively serve and provide funding for handicapped 
children under age five and their families.  
    Sec. 13.  Minnesota Statutes 1986, section 120.17, is 
amended by adding a subdivision to read:  
    Subd. 15.  [THIRD PARTY PAYMENT.] Nothing in this section 
relieves an insurer or similar third party from an otherwise 
valid obligation to pay, or changes the validity of an 
obligation to pay, for services to a handicapped child.  
    Sec. 14.  Minnesota Statutes 1986, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 16.  [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 
district, group of districts, or special education cooperative, 
in cooperation with the county or counties in which the district 
or cooperative is located, shall establish a community 
transition interagency committee for handicapped youth, 
beginning at grade nine or age equivalent, and their families.  
Members of the committee shall consist of representatives from 
special education; vocational and regular education; community 
education; post-secondary education and training institutions; 
parents of handicapped youth; local business or industry; 
rehabilitation services; county social services; health 
agencies; and additional public or private adult service 
providers as appropriate.  The committee shall elect a chair and 
shall meet regularly.  The committee shall: 
    (1) identify current services, programs, and funding 
sources provided within the community for secondary and 
post-secondary aged handicapped youth and their families; 
    (2) facilitate the development of multiagency teams to 
address present and future transition needs of individual 
students on their individual education plans; 
     (3) develop a community plan to include mission, goals, and 
objectives, and an implementation plan to assure that transition 
needs of handicapped individuals are met; 
     (4) recommend changes or improvements in the community 
system of transition services; 
     (5) exchange agency information such as appropriate data, 
effectiveness studies, special projects, exemplary programs, and 
creative funding of programs; and 
     (6) prepare a yearly summary assessing the progress of 
transition services in the community and disseminate it to all 
adult services agencies involved in the planning and to the 
commissioner of education by September 1 of each year. 
     Sec. 15.  Minnesota Statutes 1986, section 123.39, 
subdivision 1, is amended to read:  
    Subdivision 1.  The board may provide for the free 
transportation of pupils to and from school, and to schools in 
other districts for grades and departments not maintained in the 
district, including high school, at the expense of the district, 
when funds are available therefor and if agreeable to the 
district to which it is proposed to transport the pupils, for 
the whole or a part of the school year, as it may deem 
advisable, and subject to its rules.  Every driver shall possess 
all the qualifications required by the rules of the state board 
of education.  In any school district, the board shall arrange 
for the attendance of all pupils living two miles or more from 
the school through suitable provision for transportation or 
through the boarding and rooming of the pupils who may be more 
economically and conveniently provided for by that means.  The 
board shall provide transportation to and from the home of a 
handicapped child not yet enrolled in kindergarten when special 
instruction and services under section 120.17 are provided in a 
location other than in the child's home.  When transportation is 
provided, scheduling of routes, establishment of the location of 
bus stops, manner and method of transportation, control and 
discipline of school children and any other matter relating 
thereto shall be within the sole discretion, control and 
management of the school board.  The district may provide for 
the transportation of pupils or expend a reasonable amount for 
room and board of pupils whose attendance at school can more 
economically and conveniently be provided for by that means or 
who attend school in a building rented or leased by a district 
within the confines of an adjacent district. 
    Sec. 16.  Minnesota Statutes 1986, section 124.17, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
pupil in average daily membership shall be counted as 
follows: according to this subdivision.  
    (1) (a) A handicapped prekindergarten pupil who is enrolled 
for the entire school year in a program approved by the 
commissioner, for each handicapped prekindergarten pupil, 
one-half pupil unit for and has an individual education plan 
that requires up to 437 hours of assessment and education 
services in the school year as provided in the pupil's 
individual education plan or, for is counted as one-half of a 
pupil unit.  If the plan requires more than 437 hours of 
assessment and education services, a number of pupil units equal 
to the pupil is counted as the ratio of the number of hours of 
assessment and education service required in the school year by 
the pupil's individual education program plan, developed 
pursuant to the rules of the state board, to 875, but not more 
than one pupil unit;. 
    (2) In an elementary school: 
    (b) A handicapped prekindergarten pupil who is enrolled for 
less than the entire school year in a program approved by the 
commissioner is counted as the greater of (1) one-half times the 
ratio of the number of instructional days from the date the 
pupil is enrolled to the date the pupil withdraws to the number 
of instructional days in the school year, or (2) the ratio of 
the number of hours of assessment and education service required 
in the school year by the pupil's individual education program 
plan to 875, but not more than one. 
    (c) A prekindergarten pupil who is assessed but determined 
not to be handicapped is counted as the ratio of the number of 
hours of assessment service to 875.  
    (a) for each (d) A handicapped kindergarten pupil, as 
defined in section 120.03, who is enrolled in a program approved 
by the commissioner, a number of pupil units equal to is counted 
as the ratio of the number of hours of assessment and education 
services required in the school year by the pupil's individual 
education program plan, developed pursuant to the rules of the 
state board, to 875, but not more than one pupil unit;. 
    (b) for (e) A kindergarten pupils, other than those in 
clause (a), enrolled in one-half day sessions throughout the 
school year or the equivalent thereof, one-half pupil unit; 
and pupil who is not included in paragraph (d) is counted as 
one-half of a pupil unit. 
    (c) for other elementary pupils, one pupil unit (f) A pupil 
who is in any of grades one to six is counted as one pupil unit. 
    (3) in secondary schools, 1-4/10 (g) For the 1987-1988 
school year, a pupil who is in any of grades seven to 12 is 
counted as 1.4 pupil units.  Pupils enrolled in the seventh and 
eighth grades of any school shall be counted as secondary 
pupils.  For the 1988-1989 and later school years, a pupil who 
is in any of grades seven to 12 is counted as 1.35 pupil units.  
    Sec. 17.  Minnesota Statutes 1986, section 124.273, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
pay a school district a portion of the salary, calculated from 
the date of hire, of one full-time equivalent teacher for each 
45 pupils of limited English proficiency enrolled in the 
district.  Notwithstanding the foregoing, the state shall pay a 
portion of the salary, calculated from the date of hire, of 
one-half of a full-time equivalent teacher to a district with 22 
or fewer pupils of limited English proficiency enrolled.  The 
portion for a full-time teacher shall be the lesser of 65 61 
percent of the salary or $18,100 $17,000.  The portion for a 
part-time or limited-time teacher shall be the lesser of 65 61 
percent of the salary or the product of $18,100 $17,000 times 
the ratio of the person's actual employment to full-time 
employment. 
    Sec. 18.  Minnesota Statutes 1986, section 124.32, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
pay to a district a portion of the salary of each essential 
person employed in the district's program for handicapped 
children during the regular school year, whether the person is 
employed by one or more districts.  The portion for a full-time 
person shall be an amount not to exceed the lesser of 70 66 
percent of the salary or $19,500 $18,400.  The portion for a 
part-time or limited-time person shall be an amount not to 
exceed the lesser of 70 66 percent of the salary or the product 
of $19,500 $18,400 times the ratio of the person's actual 
employment to full-time employment. 
    Sec. 19.  Minnesota Statutes 1986, section 124.32, 
subdivision 1d, is amended to read: 
    Subd. 1d.  [CONTRACT SERVICES.] (1) For special instruction 
and services provided during the regular school year to any 
pupil pursuant to section 120.17, subdivision 2, clause (i), by 
contract with public, private or voluntary agencies other than 
school districts, the state shall pay each district 55 52 
percent of the difference between the amount of the contract and 
the foundation aid formula allowance of the district for that 
pupil or a pro rata portion of the foundation aid formula 
allowance for pupils who receive services by contract on less 
than a full-time basis.  
    (2) For special instruction and services provided for a 
pupil by such a contract as part of a summer school program, the 
state shall pay each district 55 52 percent of the difference 
between the amount of the contract and the summer school revenue 
allowance of the district attributable to that pupil.  
    Sec. 20.  Minnesota Statutes 1986, section 124.32, 
subdivision 2, is amended to read: 
    Subd. 2.  [SUPPLY AND EQUIPMENT AID.] The state shall pay 
each district for supplies and equipment purchased or rented for 
use in the instruction of handicapped children an amount equal 
to one-half 47 percent of the sum actually expended by the 
district but not to exceed an average of $50 $47 in any one 
school year for each handicapped child receiving instruction. 
    Sec. 21.  Minnesota Statutes 1986, section 124.32, 
subdivision 5, is amended to read: 
    Subd. 5.  [RESIDENTIAL AID.] When a handicapped child is 
placed in a residential facility approved by the commissioner 
and established primarily to serve handicapped children and when 
the child's educational program is approved by the commissioner, 
the state shall pay aid to the resident district under the 
provisions of this subdivision.  The aid shall be an amount not 
to exceed 60 57 percent of the difference between the 
instructional costs charged to the resident district and the 
foundation aid formula allowance, for each handicapped child 
placed in a residential facility.  The aid for summer school 
programs for each handicapped child placed in a residential 
facility shall be an amount not to exceed 60 57 percent of the 
difference between the instructional costs charged to the 
resident district and the summer school revenue allowance in the 
resident district attributable to that child.  No aid shall be 
paid pursuant to this subdivision for tuition charged a resident 
district pursuant to section 120.17, subdivision 7a, for a child 
placed at the Minnesota school state academy for the deaf or the 
Minnesota braille and sight-saving school state academy for the 
blind. 
    The following types of facilities may be approved by the 
commissioner: 
    (a) a residential facility operated by the state or public 
school district and designed to serve the low incidence 
handicapped, the multiple handicapped, or the most severely 
handicapped children within the state; 
     (b) a private, nonsectarian residential facility designed 
to provide educational services for handicapped children within 
the state; and 
     (c) a state hospital or private nonsectarian residential 
center designed to provide care and treatment for handicapped 
children. 
    Sec. 22.  Minnesota Statutes 1986, section 124.573, is 
amended to read:  
    124.573 [CURRENT FUNDING FOR SECONDARY VOCATIONAL 
EDUCATION.] 
    Subdivision 1.  The state shall pay aids for secondary 
vocational programs on a current funding basis. 
    Subd. 2.  [SALARIES AND TRAVEL.] The eligible expenses for 
secondary vocational aid are:  (1) the salaries paid to 
essential, licensed personnel in that school year for services 
rendered in that district's or center's approved secondary 
vocational education programs; (2) the costs of necessary travel 
between instructional sites by secondary vocational education 
teachers; and (3) the costs of necessary travel by secondary 
vocational education teachers accompanying students to and from 
vocational student organization meetings held within the state 
for educational purposes.  The state shall pay to any district 
or cooperative center 41.5 percent of the eligible expenses 
incurred in an approved secondary vocational program for each 
the 1986-1987 school year.  The state shall pay to any district 
or cooperative center 39 percent of the eligible expenses 
incurred in an approved secondary vocational program for the 
1987-1988 school year.  The commissioner may withhold all or any 
portion of this aid for a secondary vocational education program 
which receives funds from any other source.  In no event shall a 
district or center receive a total amount of state aid pursuant 
to this section which, when added to funds from other sources, 
will provide the program an amount for salaries and travel which 
exceeds 100 percent of the amount of its expenditures for 
salaries and travel in the program. 
    Subd. 2b.  [SECONDARY VOCATIONAL AID.] For 1988-1989 and 
later school years, a district's or cooperative center's 
"secondary vocational aid" for secondary vocational education 
programs for a school year equals the sum of the following 
amounts: 
    (a) the greater of zero, or 75 percent of the difference 
between:  
    (1) the salaries paid to essential, licensed personnel in 
that school year for services rendered in that district's or 
cooperative center's approved secondary vocational education 
programs, and 
    (2) 50 percent of the general education revenue 
attributable to secondary pupils for the number of hours that 
the pupils are enrolled in secondary vocational courses; and 
    (b) 30 percent of approved expenditures for the following: 
    (1) contracted services provided by a public or private 
agency other than a Minnesota school district or cooperative 
center under section 124.573, subdivision 3a; 
    (2) necessary travel between instructional sites by 
licensed secondary vocational education personnel; 
    (3) necessary travel by licensed secondary vocational 
education personnel for vocational student organization 
activities held within the state for instructional purposes; 
    (4) curriculum development activities that are part of a 
five-year plan for improvement based on program assessment; 
    (5) necessary travel by licensed secondary vocational 
education personnel for noncollegiate credit bearing 
professional development; and 
    (6) specialized vocational instructional supplies. 
    Subd. 2c.  [COOPERATIVE CENTERS.] In making the computation 
in subdivision 2b, paragraph (a), clause (2), for a cooperative 
center, the general education revenue is the average of the sums 
for each member district.  
    Subd. 3.  [COMPLIANCE WITH RULES.] This Aid shall be paid 
under this section only for services rendered or for the 
costs designated in subdivision 2 which are incurred in 
secondary vocational education programs approved by the state 
department of education and operated in accordance with rules 
promulgated by the state board of education.  These rules shall 
provide minimum student-staff ratios required for a secondary 
vocational education program in a cooperative center to qualify 
for this aid.  The rules shall not require any minimum number of 
administrative staff, any minimum period of coordination time or 
extended employment for secondary vocational education 
personnel, or the availability of vocational student activities 
or organizations for a secondary vocational education program to 
qualify for this aid.  The requirement in these rules that 
program components be available for a minimum number of hours 
shall not be construed to prevent pupils from enrolling in 
secondary vocational education courses on an exploratory basis 
for less than a full school year.  The state board of education 
shall not require a school district to offer more than four 
credits or 560 hours of vocational education course offerings in 
any school year.  Rules relating to secondary vocational 
education programs shall not incorporate the provisions of the 
state plan for vocational education by reference.  This aid 
shall be paid only for services rendered and for travel costs 
incurred by essential, licensed personnel who meet the work 
experience requirements for licensure pursuant to the rules of 
the state board of education.  Licensed personnel means persons 
holding a valid secondary vocational license issued by the 
department of education, except that when an average of five or 
fewer secondary full-time equivalent students are enrolled per 
teacher in an approved post-secondary program at intermediate 
district numbers 287, 916, or 917, licensed personnel means 
persons holding a valid vocational license issued by the 
department of education or the state board for vocational 
technical education.  Notwithstanding section 124.15, the 
commissioner may modify or withdraw the program or aid approval 
and withhold aid under this section without proceeding under 
section 124.15 at any time.  To do so, the commissioner must 
determine that the program does not comply with rules of the 
state board or that any facts concerning the program or its 
budget differ from the facts in the district's approved 
application. 
    Subd. 3a.  [AID FOR CONTRACTED SERVICES.] In addition to 
the provisions of subdivisions 2 and 3, a school district or 
cooperative center may contract with a public or private agency 
other than a Minnesota school district or cooperative center for 
the provision of secondary vocational education services.  For 
the 1986-1987 school year, the state shall pay each district or 
cooperative center 40 percent of the amount of a contract 
entered into pursuant to this subdivision.  For the 1987-1988 
school year, the state shall pay each district or cooperative 
center 35 percent of the amount of a contract entered into under 
this subdivision.  The state board shall promulgate rules 
relating to program approval procedures and criteria for these 
contracts and aid shall be paid only for contracts approved by 
the commissioner of education.  For the purposes of subdivision 
4, the district or cooperative center contracting for these 
services shall be construed to be providing the services.  For 
the purposes of subdivision 5, aid for these contracts shall be 
distributed on the same basis as aids for salaries and travel. 
    Subd. 4.  [ALLOCATIONS; COOPERATIVES, INTERMEDIATE 
DISTRICTS.] All secondary vocational education aid shall be paid 
to the district or cooperative center providing the services.  
All secondary vocational education aid received by a district or 
center from any source shall be utilized solely for the purposes 
of secondary vocational education programs. 
    Sec. 23.  Minnesota Statutes 1986, section 124.574, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SALARIES.] Each year the state shall pay to any 
district or cooperative center a portion of the salary of each 
essential licensed person employed during that school year for 
services rendered in that district or center's secondary 
vocational education programs for handicapped children.  The 
portion for a full-time person shall be an amount not to exceed 
the lesser of 70 66 percent of the salary or $19,500 $18,400.  
The portion for a part-time or limited-time person shall be the 
lesser of 70 66 percent of the salary or the product 
of $19,500 $18,400 times the ratio of the person's actual 
employment to full-time employment.  
    Sec. 24.  Minnesota Statutes 1986, section 124.574, 
subdivision 3, is amended to read:  
    Subd. 3.  [EQUIPMENT, TRAVEL, AND SUPPLIES.] In addition to 
the provisions of subdivision 2 2b, the state shall pay for each 
school year, except for the 1982-1983 school year: 
    (a) 50 47 percent of the costs of necessary equipment for 
these secondary vocational education programs for handicapped 
children; 
    (b) 50 47 percent of the costs of necessary travel between 
instructional sites by secondary vocational education teachers 
of handicapped children, but not including travel to and from 
local, regional, district, state or national vocational student 
organization meetings; and 
    (c) 50 47 percent of the costs of necessary supplies for 
these secondary vocational education programs for handicapped 
children, but not to exceed an average of $50 $45 in any one 
school year for each handicapped child receiving these services. 
    Sec. 25.  Minnesota Statutes 1986, section 124.574, 
subdivision 4, is amended to read:  
    Subd. 4.  [AID FOR CONTRACTED SERVICES.] In addition to the 
provisions of subdivisions 2 2b and 3, a school district may 
contract with a public or private agency other than a Minnesota 
school district or cooperative center for the provision of 
secondary vocational education programs for handicapped 
children.  The formula for payment of aids for these contracts 
shall be that provided in section 124.32, subdivision 1b.  The 
state board shall promulgate rules relating to approval 
procedures and criteria for these contracts and aid shall be 
paid only for contracts approved by the commissioner of 
education.  For the purposes of subdivision 6, the district or 
cooperative center contracting for these services shall be 
construed to be providing these services.  For the purposes of 
subdivision 8, aid for these contracts shall be distributed on 
the same basis as aids for salaries, supplies and travel. 
    Sec. 26.  Minnesota Statutes 1986, section 126.54, 
subdivision 1, is amended to read:  
    Subdivision 1.  [GRANTS; PROCEDURES.] For Each fiscal years 
1983, 1984, and 1985 year the state board of education shall 
make grants to no fewer than six school year American Indian 
language and culture education programs.  At least three 
programs shall be in urban areas and at least three shall be on 
or near reservations.  The board of a local district, a 
participating school or a group of boards may develop a proposal 
for grants in support of American Indian language and culture 
education programs.  Proposals may provide for contracts for the 
provision of program components by nonsectarian nonpublic, 
community, tribal or alternative schools.  The state board shall 
prescribe the form and manner of application for grants, and no 
grant shall be made for a proposal not complying with the 
requirements of sections 126.45 to 126.55.  The state board 
shall submit all proposals to the state advisory task force on 
American Indian language and culture education programs for its 
recommendations concerning approval, modification, or 
disapproval and the amounts of grants to approved programs. 
    Sec. 27.  Minnesota Statutes 1986, section 128A.01, is 
amended to read:  
    128A.01 [LOCATION.] 
    The Minnesota state academy for the deaf and the Minnesota 
state academy for the blind shall be continued located at 
Faribault as residential schools and as a resource center for 
school districts, and shall be grouped and classed with the 
educational institutions of the state. 
    Sec. 28.  Minnesota Statutes 1986, section 128A.02, 
subdivision 2, is amended to read:  
    Subd. 2.  The state board shall promulgate rules regarding 
the operation of both academies and the individuals in 
attendance, and shall perform all duties necessary to provide 
the most beneficial and least restrictive program of education 
for each child handicapped by visual disability or hearing 
impairment.  The academies shall provide various levels of 
service, as defined in the rules of the state board of 
education, for the pupils.  Developmental needs of the pupils 
shall be addressed by the academies.  The academies shall 
provide opportunities for the pupils to be educated with 
nonhandicapped pupils, according to assessments and individual 
education plans.  
    Sec. 29.  Minnesota Statutes 1986, section 128A.02, 
subdivision 4, is amended to read:  
    Subd. 4.  The state board may enter into contracts with 
other public and private agencies and institutions to provide 
residential and building maintenance services if it determines 
that these services could thus be provided in a more efficient 
and less expensive manner.  The state board may also enter into 
contracts with public and private agencies and institutions, 
school districts or combinations thereof, and educational 
cooperative service units, and counties to provide respite care 
and supplementary educational instruction and services, 
including assessments and counseling. 
    Sec. 30.  [128A.021] [RESOURCE CENTER FOR THE HEARING 
IMPAIRED AND VISUALLY IMPAIRED.] 
    A resource center for the hearing impaired, visually 
impaired, and multiply handicapped pupils is established at the 
Minnesota state academy for the deaf and the Minnesota state 
academy for the blind.  The resource center shall offer such 
programs as summer institutes for hearing impaired, visually 
impaired, and multiply handicapped pupils in various regions of 
the state, workshops for teachers, and leadership development 
for teachers.  Programs offered through the resource center 
shall promote and develop education programs offered by school 
districts and other organizations and shall provide assistance 
to school districts and other organizations in developing 
innovative programs.  The resource center may contract with 
nonprofit organizations to provide programs through the resource 
center.  The advisory council for the academies shall serve as 
the advisory council for the resource center. 
    Sec. 31.  [128A.09] [SERVICE, SEMINAR, AND CONFERENCE 
FEES.] 
    Subdivision 1.  [DEPOSIT; CREDIT.] Fees and rental income, 
excluding rent for land and living residences, collected by the 
academies for services, seminars, and conferences must be 
deposited in the state treasury and credited to the revolving 
fund of the academies. 
    Subd. 2.  [ADMINISTRATOR'S VOUCHERS.] Payment may be made 
from the revolving fund only according to vouchers authorized by 
the administrator of the academies.  Money in the revolving fund 
is annually appropriated to the academies to defray expenses of 
the services, seminars, and conferences. 
    Sec. 32.  Minnesota Statutes 1986, section 136D.27, is 
amended to read: 
    136D.27 [TAX LEVIES, CERTIFICATES OF INDEBTEDNESS.] 
    Each year the joint school board may each year, for the 
purpose of paying any administrative, planning, operating, or 
capital expenses incurred or to be incurred for area vocational 
technical schools, certify to each participating school district 
the tax levy specified in section 275.125, subdivision 13, 
clause (2).  Additional tax levies may be certified which that 
shall not in any year exceed .6 mills on each dollar of adjusted 
assessed valuation for special education and .7 mills on each 
dollar of adjusted assessed valuation for expenses for secondary 
vocational education.  Each participating school district shall 
include such tax levies in the next tax roll which it shall 
certify to the county auditor or auditors, and shall remit the 
collections of such levies to the board promptly when received.  
Such levies shall not be included in computing the limitations 
upon the levy of any district under sections 124A.03, 124A.06, 
subdivision 3a, 124A.08, subdivision 3a, 124A.10, subdivision 
3a, 124A.12, subdivision 3a, 124A.14, subdivision 5a, and 
275.125.  The board may, any time after such levies have been 
certified to the participating school districts, issue and sell 
certificates of indebtedness in anticipation of the collection 
of such levies, but in aggregate amounts such as will not exceed 
the portion of the levies which is then not collected and not 
delinquent. 
    Sec. 33.  Minnesota Statutes 1986, section 136D.71, is 
amended to read:  
    136D.71 [LISTED DISTRICTS MAY FORM INTERMEDIATE DISTRICT.] 
    Notwithstanding any other law to the contrary, two or more 
of the independent school districts numbered 12 and 16 of Anoka 
county, independent school districts numbered 621, 622, 623, and 
624 of Ramsey County, and independent school districts numbered 
832, 833, and 834 of Washington County, are hereby authorized to 
enter into an agreement to establish a special intermediate 
school district upon majority vote of the full membership of 
each of the boards of the districts entering into the 
agreement.  When such resolution has been adopted by the board 
of one of the districts, it shall be published once in a 
newspaper of general circulation in said district.  If a 
petition for referendum on the question of said district 
entering into such agreement is filed with the clerk of the said 
board within 60 days after publication of such resolution, 
signed by the qualified voters of said district equal to five 
percent of the number of voters at the last annual school 
election.  No board shall enter into such agreement until the 
question of whether the district shall enter into the agreement 
has been submitted to the voters of said district at a special 
election.  Said election shall be conducted and canvassed in 
accordance with section 123.32. 
    If a majority of the total number of votes cast on the 
question within said district is in favor of the question, the 
board of said school district may thereupon proceed to enter 
into an agreement to establish the special intermediate school 
district for purposes herein described.  Such school district so 
created shall be known as northeastern metropolitan intermediate 
school district, state of Minnesota.  The commissioner of 
education shall assign an appropriate identification number as 
provided by section 122.03. 
    Sec. 34.  Minnesota Statutes 1986, section 136D.74, 
subdivision 2, is amended to read:  
    Subd. 2.  [TAX LEVY.] Each year the intermediate school 
board may in each year for the purpose of paying any 
administrative, planning, operating, or capital expenses 
incurred or to be incurred certify to each county auditor of 
each county in which said intermediate school district shall 
lie, as a single taxing district, the tax levy specified in 
section 275.125, subdivision 13, clause (2).  Additional tax 
levies may be certified which that shall not in any year exceed 
.6 mills on each dollar of adjusted assessed valuation for 
expenses for special education and .5 .7 mills on each dollar of 
adjusted assessed valuation for expenses for secondary 
vocational education.  Said annual tax levies shall be certified 
pursuant to section 275.07.  Upon such certification the county 
auditor or auditors and other appropriate county officials shall 
levy and collect such levies and remit the proceeds of 
collection thereof to the intermediate school district as in the 
case with independent school districts.  Such levies shall not 
be included in computing the limitations, if any, upon the levy 
of the intermediate district or any of the participating 
districts under sections 124A.03, 124A.06, subdivision 3a, 
124A.08, subdivision 3a, 124A.10, subdivision 3a, 124A.12, 
subdivision 3a, 124A.14, subdivision 5a, and 275.125. 
    Sec. 35.  Minnesota Statutes 1986, section 136D.87, is 
amended to read: 
    136D.87 [TAX LEVIES, CERTIFICATES OF INDEBTEDNESS.] 
    Each year the joint school board may each year, for the 
purpose of paying any administrative, planning, operating, or 
capital expenses incurred or to be incurred for area vocational 
technical schools, certify to each participating school district 
the tax levy specified in section 275.125, subdivision 13, 
clause (2).  Additional tax levies may be certified which that 
shall not in any year exceed .6 mills on each dollar of adjusted 
assessed valuation for expenses for special education and .5 .7 
mills on each dollar of adjusted assessed valuation for expenses 
for secondary vocational education.  Each participating school 
district shall include such tax levies in the next tax roll 
which it shall certify to the county auditor or auditors, and 
shall remit the collections of such levies to the board promptly 
when received.  Such levies shall not be included in computing 
the limitations upon the levy of any district under sections 
124A.03, 124A.06, subdivision 3a, 124A.08, subdivision 3a, 
124A.10, subdivision 3a, 124A.12, subdivision 3a, 124A.14, 
subdivision 5a, and 275.125.  The board may, any time after such 
levies have been certified to the participating school 
districts, issue and sell certificates of indebtedness in 
anticipation of the collection of such levies, but in aggregate 
amounts such as will not exceed the portion of the levies which 
is then not collected and not delinquent. 
    Sec. 36.  Minnesota Statutes 1986, section 275.125, 
subdivision 8c, is amended to read:  
    Subd. 8c.  [SPECIAL EDUCATION LEVY.] Each year, a district, 
excluding intermediate school district Nos. 287, 916, and 917, 
may levy an amount that may not exceed 70 66 percent of salaries 
paid to essential personnel in that district minus the amount of 
state aid and any federal aid, if applicable, paid to that 
district for salaries of these essential personnel under 
sections 124.32, subdivisions 1b and 10 and 124.574, subdivision 
2b plus 65 61 percent of salaries paid to essential personnel in 
that district minus the amount of state aid and any federal aid, 
if applicable, paid to that district for salaries of these 
essential personnel under section 124.273, subdivision 1b for 
the year to which the levy is attributable. 
    For purposes of this subdivision, a special education 
cooperative or an intermediate school district each year shall 
allocate an amount equal to 70 66 percent of salaries paid to 
essential personnel in that intermediate district or cooperative 
minus the amount of state aid and any federal aid, if 
applicable, paid to that intermediate district or cooperative 
for salaries of these essential personnel under sections 124.32, 
subdivisions 1b and 10 and 124.574, subdivision 2b, plus 65 61 
percent of salaries paid to essential personnel in that 
intermediate district or cooperative minus the amount of state 
aid and any federal aid, if applicable, paid to that 
intermediate district or cooperative for salaries of these 
essential personnel under section 124.273, subdivision 1b for 
the year to each of the member districts of the cooperative or 
the intermediate district.  The member districts may make a levy 
in the amount of the costs allocated to them by the cooperative 
or intermediate district.  
    Special education cooperatives and intermediate school 
districts that allocate unreimbursed portions of salaries of 
special education essential personnel among member districts, 
for purposes of the member districts making a levy under this 
subdivision, shall provide information to the state department 
of education on the amount of unreimbursed costs of salaries 
they allocated to the member districts.  
    Sec. 37.  [SPECIAL EDUCATION LEVY ADJUSTMENTS.] 
    The department shall make adjustments to the 1986 payable 
1987 levies authorized under Minnesota Statutes 1986, section 
275.125, subdivision 8c in accordance with the changes made in 
this article. 
    Sec. 38.  [COMMISSION SPECIAL EDUCATION STUDY.] 
    The sum of $100,000 is appropriated for fiscal year 1988 
from the general fund to the legislative commission on public 
education for the commission to conduct a comprehensive 
qualitative and quantitative evaluation and analytical study of 
special education, financing, and related services.  The sum is 
available until June 30, 1989.  
    Sec. 39.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid there is appropriated:  
    $148,514,500.....1988, 
    $152,963,700.....1989. 
    The appropriation for aid for fiscal year 1988 includes 
$21,847,100 for aid for fiscal year 1987 payable in fiscal year 
1988 and $126,667,400 for aid for fiscal year 1988 payable in 
fiscal year 1988. 
    The appropriation for aid for fiscal year 1989 includes 
$22,728,200 for aid for fiscal year 1988 payable in fiscal year 
1989 and $130,235,500 for aid for fiscal year 1989 payable in 
fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$149,395,600 for fiscal year 1988 and $153,593,400 for fiscal 
year 1989.  
    Subd. 3.  [SUMMER SPECIAL EDUCATION AID.] For special 
education aid for summer school programs there is appropriated: 
    $5,126,300.......1988, 
    $5,254,400.......1989. 
    The appropriation for 1988 is for 1987 summer school 
programs. 
    The appropriation for 1989 is for 1988 summer school 
programs. 
    Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
teacher travel for home-based services for handicapped children 
under age five and their families there is appropriated:  
    $251,600 ..... 1988, 
    $370,900 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$35,100 for aid for fiscal year 1987 payable in fiscal year 1988 
and $216,500 for aid for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$38,100 for aid for fiscal year 1988 payable in fiscal year 1989 
and $332,800 for aid for fiscal year 1989 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$254,600 for fiscal year 1988 and $391,500 for fiscal year 1989. 
    Subd. 5.  [RESIDENTIAL FACILITIES AID.] For aid pursuant to 
section 124.32, subdivision 5, there is appropriated: 
    $1,494,400.......1988, 
    $1,530,500.......1989. 
    Subd. 6.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
For aid to educational programs for pupils of limited English 
proficiency according to Minnesota Statutes, section 124.273, 
there is appropriated:  
    $2,879,900 ..... 1988, 
    $3,004,700 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$430,700 for aid for fiscal year 1987 payable in fiscal year 
1988 and $2,449,200 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$432,100 for aid for fiscal year 1988 payable in fiscal year 
1989 and $2,572,600 for aid for fiscal year 1989 payable in 
fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$2,881,300 for fiscal year 1988 and $3,026,500 for fiscal year 
1989.  
    Subd. 7.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
Indian scholarships, according to Minnesota Statutes, section 
124.48, there is appropriated:  
    $1,581,800 ..... 1988, 
    $1,581,800 ..... 1989.  
    Any unexpended balance remaining in the first year does not 
cancel but is available for fiscal year 1989. 
    Subd. 8.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
GRANTS.] For Indian post-secondary preparation grants, according 
to Minnesota Statutes, section 124.481, there is appropriated: 
    $781,400 ..... 1988, 
    $781,400 ..... 1989.  
    Subd. 9.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAM 
AID.] For grants to American Indian language and culture 
education programs according to Minnesota Statutes, section 
126.54, subdivision 1, there is appropriated:  
    $588,400 ..... 1988, 
    $588,300 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$88,300 for aid for fiscal year 1987 payable in fiscal year 1988 
and $500,100 for aid for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$88,200 for aid for fiscal year 1988 payable in fiscal year 1989 
and $500,100 for aid for fiscal year 1989 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$588,300 for fiscal year 1988 and $588,300 for fiscal year 1989. 
    Subd. 10.  [AMERICAN INDIAN EDUCATION.] For certain 
American Indian education programs in school districts there is 
appropriated: 
    $174,755 ..... 1988, 
    $174,755 ..... 1989. 
    The appropriation for aid for fiscal year 1988 includes 
$26,213 for aid for fiscal year 1987 payable in fiscal year 1988 
and $148,542 for aid for fiscal year 1988 payable in fiscal year 
1988. 
    The appropriation for fiscal year 1989 includes $26,213 for 
aid for fiscal year 1988 payable in fiscal year 1989 and 
$148,542 for aid for fiscal year 1989 payable in fiscal year 
1989. 
    The appropriations are based on aid entitlements of 
$174,755 for fiscal year 1988 and $174,755 for fiscal year 1989. 
    These appropriations are available for expenditure with the 
approval of the commissioner of education. 
    The commissioner shall not approve the payment of any 
amount to a school district pursuant to this subdivision unless 
that school district is in compliance with all applicable laws 
of this state. 
    Up to the following amounts may be distributed to the 
following school districts for each fiscal year:  $54,848 to 
independent school district No. 309-Pine Point School; $9,685 to 
independent school district No. 166; $14,949 to independent 
school district No. 432; $14,053 to independent school district 
No. 435; $42,163 to independent school district No. 707; and 
$39,057 to independent school district No. 38.  These amounts 
shall be expended only for the benefit of American Indian 
students and for the purpose of meeting established state 
educational standards or statewide requirements. 
    These appropriations are available only if there will not 
be available for the districts enumerated in this subdivision 
for the applicable school year any operation support funds from 
the federal Bureau of Indian Affairs pursuant to the 
Johnson-O'Malley Act, Public Law Number 73-167, or Code of 
Federal Regulations, title 25, section 273.31, or equivalent 
money from the same or another source. 
    Before a district can receive moneys pursuant to this 
subdivision, the district must submit to the commissioner of 
education evidence that it has:  
    (1) complied with the uniform financial accounting and 
reporting standards act, Minnesota Statutes, sections 121.90 to 
121.917.  For each school year, compliance with Minnesota 
Statutes, section 121.908, subdivision 3a, shall require the 
school district to prepare one budget including the amount 
available to the district pursuant to this subdivision and one 
budget which does not include these moneys.  The budget of that 
school district for the 1989-1990 school year prepared according 
to Minnesota Statutes, section 121.908, subdivision 3a, shall be 
submitted to the commissioner of education at the same time as 
1988-1989 budgets and shall not include any moneys appropriated 
in this subdivision; 
    (2) conducted a special education needs assessment and 
prepared a proposed service delivery plan according to Minnesota 
Statutes, sections 120.03 and 120.17; Public Law Number 94-142, 
an act of the 94th Congress of the United States cited as the 
"Education for All Handicapped Children Act of 1975"; and 
applicable state board of education rules; and 
    (3) compiled accurate daily pupil attendance records. 
    Prior to approving payment of any amount to a school 
district pursuant to this subdivision, the commissioner shall 
review and evaluate each affected district's compliance with 
clauses (1), (2), and (3), and any other applicable laws, and 
each affected district's need for the moneys.  Each affected 
district's net unappropriated fund balance in all operating 
funds as of June 30 of the previous school year shall be taken 
into consideration. 
    Subd. 11.  [NETT LAKE LIABILITY INSURANCE.] For a grant to 
independent school district No. 707, Nett Lake, to pay insurance 
premiums under Minnesota Statutes, section 466.06, there is 
appropriated: 
    $40,000 ..... 1988. 
    The sum is available until June 30, 1989.  
    Subd. 12.  [COOK COUNTY INDIAN EDUCATION GRANT.] For grants 
to independent school district No. 166, Cook county, for Indian 
education at the Grand Portage elementary school there is 
appropriated:  
    $50,000 ..... 1988, 
    $50,000 ..... 1989.  
    The district must comply with the conditions in subdivision 
10. 
    Subd. 13.  [SCHOOL BUS PURCHASE.] For a grant to 
independent school district No. 309, Pine Point, to purchase a 
school bus there is appropriated:  
    $38,000..........1988.  
    Subd. 14.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
secondary vocational education aid pursuant to Minnesota 
Statutes, section 124.573, there is appropriated: 
    $19,549,600......1988, 
    $12,891,000......1989. 
    The appropriation for 1988 includes $2,972,300 for aid for 
fiscal year 1987 payable in fiscal year 1988, $16,577,300 for 
aid for fiscal year 1988 payable in fiscal year 1988. 
    The appropriation for 1989 includes $2,925,300 for aid for 
fiscal year 1988 payable in fiscal year 1989, $9,965,700 for aid 
for fiscal year 1989 payable in fiscal year 1989. 
    The appropriations are based on aid entitlements of 
$19,502,600 for fiscal year 1988 and $11,724,300 for fiscal year 
1989. 
    For purposes of this subdivision, money appropriated for 
secondary vocational education programs may not be expended for 
the purpose of discontinuing or converting existing senior 
secondary school industrial arts education programs. 
    Subd. 15.  [SECONDARY VOCATIONAL HANDICAPPED.] For aid for 
secondary vocational education for handicapped pupils according 
to section 124.574, there is appropriated: 
    $4,101,100......1988, 
    $4,281,700......1989. 
    The appropriation for 1988 includes $543,500 for aid for 
fiscal year 1987 payable in fiscal year 1988 and $3,557,600 for 
aid for fiscal year 1988 payable in fiscal year 1988.  
    The appropriation for 1989 includes $627,700 for aid for 
fiscal year 1988 payable in fiscal year 1989, and $3,654,000 for 
aid for 1989 payable in fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$4,185,300 for fiscal year 1988 and $4,298,800 for fiscal year 
1989. 
    Sec. 40.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF JOBS AND TRAINING.] There is 
appropriated from the general fund to the department of jobs and 
training the sums indicated in this section for the fiscal years 
ending June 30 in the years designated.  
    Subd. 2.  [PINE POINT UNEMPLOYMENT COMPENSATION.] For 
payment of the obligation of independent school district No. 
309, Pine Point, for unemployment compensation there is 
appropriated:  
    $32,000 ..... 1988. 
    The sum is available until June 30, 1989.  
    Subd. 3.  [NETT LAKE UNEMPLOYMENT COMPENSATION.] For 
payment of the obligation of independent school district No. 
707, Nett Lake, for unemployment compensation there is 
appropriated:  
    $20,000 ..... 1988. 
    The sum is available until June 30, 1989. 
    Sec. 41.  [REPEALER.] 
    Minnesota Statutes 1986, sections 120.17, subdivision 13 
and 124.273, subdivision 2b, are repealed. 
    Sec. 42.  [APPLICATION, NO LOCAL APPROVAL.] 
    Subdivision 1.  [DISTRICT NO. 916.] Sections 33 and 34 
apply to intermediate school district No. 916 and are effective 
without local approval under Minnesota Statutes, section 645.023.
    Subd. 2.  [DISTRICT NO. 917.] Section 35 applies to 
intermediate district No. 917 and is effective without local 
approval under Minnesota Statutes, section 645.023. 
    Sec. 43.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective July 1, 1988. 

                               ARTICLE 4

                     COMMUNITY AND ADULT EDUCATION
    Section 1.  Minnesota Statutes 1986, section 121.87, 
subdivision 1, is amended to read:  
    Subdivision 1.  [APPOINTMENT; MEMBERSHIP.] The state board 
of education may shall appoint a 15-member community education 
advisory task force for the purpose of promoting the furtherance 
of sections 121.85 to 121.88, to promote the goals of community 
education and the advancement of to expand educational, 
recreational and social opportunity opportunities through the 
maximum utilization use of public school facilities and 
community resources throughout the state of Minnesota.  If 
appointed, The task force shall include at least one member from 
each congressional district and members who represent government 
and professions most closely related to community education and 
youth development activities, functions and school 
administrative jurisdictions. 
    Sec. 2.  Minnesota Statutes 1986, section 121.87, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [RESPONSIBILITIES.] The community education 
advisory task force, in consultation with the commissioners of 
health, human services, and jobs and training or their 
designees, shall: 
    (1) develop a statewide plan to promote a coordinated 
interagency approach to addressing the needs and developing the 
resources of youth, from birth to age 21, at both the state and 
local level through programs such as positive youth development 
partnerships, youth in community service programs, and 
interagency programs for providing services to young children 
and youth; 
    (2) make recommendations to the state board of education 
and other appropriate entities on means for improving 
coordination of efforts by various state and local agencies and 
programs in addressing the needs of and opportunities for youth; 
and 
    (3) develop model plans for an interagency approach by 
local advisory councils. 
    Sec. 3.  Minnesota Statutes 1986, section 121.88, 
subdivision 2, is amended to read:  
    Subd. 2.  [ADVISORY COUNCIL.] Each board shall provide for 
an advisory council to consist of members who represent:  
various service organizations; churches; private public and 
nonpublic schools; local government including elected officials; 
public and private nonprofit agencies serving youth and 
families; parents; youth; park, recreation or forestry services 
of municipal or local government units located in whole or in 
part within the boundaries of the school district; and any other 
groups participating in the community education program in the 
school district. 
    Sec. 4.  Minnesota Statutes 1986, section 121.88, 
subdivision 7, is amended to read:  
    Subd. 7.  [PROGRAM APPROVAL.] To be eligible for 
handicapped adult program revenue, a program and budget must 
receive approval from the community education section in the 
department of education.  Approval may be for one or two years. 
For programs offered cooperatively, the request for approval 
must include an agreement on the method by which local money is 
to be derived and distributed.  The department may not exceed 
the amount appropriated when approving programs and budgets.  A 
request for approval must include all of the following:  
    (1) characteristics of the people to be served; 
    (2) description of the program services and activities; 
    (3) program budget and amount of aid requested; 
    (4) participation by handicapped adults in developing the 
program; 
    (5) assessment of the needs of handicapped adults; and 
    (6) cooperative efforts with community organizations. 
    Sec. 5.  Minnesota Statutes 1986, section 121.88, is 
amended by adding a subdivision to read: 
     Subd. 8.  [YOUTH DEVELOPMENT PLANS.] A district advisory 
council may prepare a youth development plan.  The council is 
encouraged to use the state model plan developed under section 2 
when developing the local plan.  If the school board approves 
the youth development plan and the district makes a community 
education levy, the district is eligible for additional 
community education revenue under section 11. 
    Sec. 6.  Minnesota Statutes 1986, section 123.703, 
subdivision 3, is amended to read:  
    Subd. 3.  [REPORT.] The state board of education, in 
cooperation with the state commissioner of health, shall report 
to the legislature by February 1 of each odd-numbered year on 
the results of the screening programs in accomplishing the 
purposes specified in section 123.701.  The report shall include 
information on the rates of children's participation in 
screening programs, on districts' costs for implementing the 
various components of the screening program, and on any 
exemptions granted from screening requirements because of 
financial infeasibility. 
    Sec. 7.  Minnesota Statutes 1986, section 123.705, is 
amended to read:  
    123.705 [HEALTH SCREENING AID.] 
    Subdivision 1.  [AID AMOUNTS.] The department of education 
state shall pay each school district for the cost of screening 
services provided pursuant according to sections 123.701 to 
123.705.  The payment shall not exceed $15.60 per child screened 
in fiscal year 1985, $16.15 per child screened in fiscal year 
1986 and an amount equal to $8.15 per child screened in fiscal 
year 1987.  
    Sec. 8.  Minnesota Statutes 1986, section 124.26, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [PROGRAM REQUIREMENTS.] An adult basic and 
continuing education program is a day or evening program offered 
by a district that is for people over 16 years of age who do not 
attend an elementary or secondary school.  The program offers 
academic instruction necessary to earn a high school diploma or 
equivalency certificate.  Tuition and fees may not be charged 
for instruction subsidized under this section, except for a 
security deposit to assure return of materials, supplies, and 
equipment. 
    Sec. 9.  Minnesota Statutes 1986, section 124.26, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [PROGRAM APPROVAL.] A district receiving aid 
under this section must have its program approved by the 
commissioner according to the following criteria:  
    (1) how the needs of all levels of learners will be met; 
    (2) for continuing programs, an evaluation of results; 
    (3) anticipated number and education level of participants; 
    (4) coordination with other resources and services; 
    (5) participation in a consortium, if any, and funds 
available from other participants; 
    (6) management and program design; 
    (7) volunteer training and use of volunteers; 
    (8) staff development services;  
    (9) program sites and schedules; and 
     (10) program expenditures that qualify for aid.  
    The commissioner may contract with a private, nonprofit 
organization to provide services that are not offered by a 
district or that are supplemental to a district's program.  The 
program provided under a contract must be approved according to 
the same criteria used for district programs. 
    Sec. 10.  Minnesota Statutes 1986, section 124.26, is 
amended by adding a subdivision to read: 
    Subd.  7.  [ADULT BASIC AND CONTINUING EDUCATION AID.] Each 
district shall receive aid for approved adult basic and 
continuing education programs equal to 75 percent of the salary 
for each teacher, counselor, coordinator of volunteers, and 
non-licensed instructional staff.  In addition, the state shall 
pay aid equal to 75 percent of the expenditures for benefits, 
contracted services, supplies, and materials.  Expenditures for 
which the district receives federal aid shall not qualify for 
state aid. 
    Sec. 11.  Minnesota Statutes 1986, section 124.271, 
subdivision 2b, is amended to read:  
    Subd. 2b.  [AID; 1986, 1987, 1988 AND AFTER.] (1) (a) Each 
fiscal year a district which is operating that operates a 
community education program in compliance with rules promulgated 
by the state board shall receive community education aid.  
    For fiscal year 1986, the aid shall be an amount equal to 
the difference obtained by subtracting 
    (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
    $7,000, or 
    $5.25 times the population of the district.  
    For fiscal year 1987, the aid shall be an amount equal to 
the difference obtained by subtracting 
    (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
    $7,140, or 
    $5.35 times the population of the district.  
     (b) For fiscal year 1988 and each year thereafter, the aid 
shall be an amount equal to the difference obtained by 
subtracting 
    (a) (1) an amount equal to .8 mill times the adjusted 
assessed valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) (2) the greater of 
    (i) $7,340, or 
    (ii) $5.50 times the population of the district. 
    (c) For fiscal year 1989 and each year thereafter, the aid 
for a district without an approved youth development plan shall 
be an amount equal to the difference obtained by subtracting 
    (1) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (2) the greater of 
    (i) $7,340, or 
    (ii) $5.50 times the population of the district. 
    (d) For fiscal year 1989 and each year thereafter, the aid 
for a district with an approved youth development plan under 
section 5, shall be an amount equal to the difference obtained 
by subtracting 
    (1) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (2) the greater of 
    (i) $8,000, or 
    (ii) $6 times the population of the district. 
    (e) For a district with an approved youth development plan, 
the greater of 50 cents per capita or $660 must be used to 
implement the youth development plan. 
    (2) (f) However, for any district which certifies less than 
the maximum permissible levy under the provisions of section 
275.125, subdivision 8, clause (1) paragraph (a), the district's 
community education aid under clause (1) paragraphs (a) to (e) 
of this subdivision shall be reduced by multiplying the aid 
amount computed pursuant to clause (1) paragraphs (a) to (e) of 
this subdivision by the ratio of the district's actual levy 
under section 275.125, subdivision 8, clause (1) paragraph (a), 
to its maximum permissible levy under section 275.125, 
subdivision 8, clause (1) paragraph (a).  For purposes of 
computing the aid reduction pursuant to this clause, the amount 
certified pursuant to section 275.125, subdivision 8, clause (1) 
paragraph (a), shall not reflect reductions made pursuant to 
section 275.125, subdivision 9.  
    Sec. 12.  Minnesota Statutes 1986, section 124.271, 
subdivision 7, is amended to read:  
    Subd. 7.  [HANDICAPPED ADULT PROGRAM AID.] A district or 
group of districts offering an approved program for handicapped 
adults shall receive aid equal to the lesser of $25,000 $30,000 
or one-half of the amount of the actual expenditures for 
approved budget programs.  A district or group of districts 
shall provide the remaining half from other public or private 
sources, the levy authorized in section 275.125, subdivision 
8, clause (4) paragraph (d), or combinations of sources. 
    Sec. 13.  Minnesota Statutes 1986, section 124.2711, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITION OF MAXIMUM REVENUE.] For fiscal 
year 1986 the "maximum revenue" for early childhood family 
education programs for a school year means the amount of revenue 
equal to the product of five percent of the foundation aid 
formula allowance for the current school year, times the greater 
of (a) 150, or (b) the number of people under five years of age 
residing in the district on September 1 of the preceding school 
year.  For fiscal year 1987 and each year thereafter, the 
"maximum revenue" for early childhood family education programs 
for a school year means the amount of revenue equal to the 
product of five percent of the foundation aid formula allowance 
for the prior school year, times the greater of (a) 150, or (b) 
the number of people under five years of age residing in the 
district on September 1 of the preceding school year.  For 
fiscal year 1988 and each year thereafter, the "maximum revenue" 
for early childhood family education programs for a school year 
means the amount of revenue derived by multiplying $84.50 times 
the greater of (a) 150, or (b) the number of people under five 
years of age residing in the district on September 1 of the 
preceding school year. 
    Sec. 14.  Minnesota Statutes 1986, section 275.125, 
subdivision 8, is amended to read:  
    Subd. 8.  [COMMUNITY EDUCATION LEVY.] (1) (a) Each year, a 
district which without a youth development plan that has 
established a community education advisory council pursuant to 
under section 121.88, may levy the amount raised by .8 mill 
times the most recent adjusted assessed valuation of the 
district, but no more than the greater of 
    (1) $7,340, or 
    (2) $5.50 times the population of the district, or 
    $7,340.  
    (b) Each year, a district with an approved youth 
development plan, or a district that intends to approve a youth 
development plan for the 1988-1989 school year, that has 
established a community education advisory council under section 
121.88, may levy the amount raised by .8 mill times the most 
recent adjusted assessed valuation of the district, but no more 
than the greater of 
    (1) $8,000, or 
    (2) $6 times the population of the district. 
    (2) (c) In addition to the levy authorized in clause 
(1) paragraph (a) or (b), each year a district may levy an 
additional amount for community education programs equal to 
the difference obtained by subtracting 
    (a) the sum in fiscal year 1984 of 
    (i) the district's estimated maximum permissible revenue 
for fiscal year 1985 from community education aid under section 
124.271, subdivision 2b, clause (1), and 
    (ii) the community education levy authorized in clause (1) 
of this subdivision, from 
    (b) the sum in fiscal year 1983 of 
    (i) the district's maximum permissible revenue from 
community education aid under Minnesota Statutes 1984, section 
124.271, subdivision 2, excluding any reductions from community 
education aid made pursuant to Laws 1981, Third Special Session 
chapter 2, article 2, section 2, clause (mm), and Laws 1982, 
Third Special Session chapter 1, article 3, section 6, and 
    (ii) the maximum community education levy authorized in 
this subdivision for the district for the levy made in 1981, 
payable in 1982, before any reduction in the levy pursuant to 
subdivision 9 amount authorized under Minnesota Statutes 1986, 
section 275.125, subdivision 8, clause (2).  
    (3) (d) A district having an approved adult basic and 
continuing education program, according to section 124.26, may 
levy an amount not to exceed the amount raised by .1 mill times 
the adjusted assessed valuation of the district for the 
preceding year. 
    (4) (e) A district having an approved program and budget 
may levy for a handicapped adult program.  The levy amount may 
not exceed the lesser of one-half of the amount of:  (1) the 
approved budget for the program actual expenditures for approved 
programs for the fiscal year beginning in the calendar year 
after the levy is certified minus the amount of state aid paid 
for the same year, or $25,000 (2) $30,000 for one program.  In 
the case of a program offered by a group of districts, the levy 
amount shall be divided among the districts according to the 
agreement submitted to the department.  The proceeds of the levy 
shall be used only for a handicapped adult program or, if the 
program is subsequently not offered, for community education 
programs.  For programs not offered, the department of education 
shall reduce the community education levy by the amount levied 
the previous year for handicapped adult programs. 
    (5) (f) The levies authorized in this subdivision shall be 
used for community education, including nonvocational adult 
programs, recreation and leisure time activity programs, and 
programs authorized by sections 121.85 to 121.88 and 129B.06 to 
129B.09, and 121.882.  A school district may levy pursuant to 
this subdivision only after it has filed a certificate of 
compliance with the commissioner of education.  The certificate 
of compliance shall certify that the governing boards of the 
county, municipality and township in which the school district 
or any part thereof is located have been sent 15 working days 
written notice of a meeting and that a meeting has been held to 
discuss methods of increasing mutual cooperation between such 
bodies and the school board.  The failure of a governing board 
of a county, municipality or township to attend the meeting 
shall not affect the authority of the school district to levy 
pursuant to this subdivision. 
    (6) (g) The population of the district for purposes of this 
subdivision is the population determined as provided in section 
275.14 or as certified by the department of education from the 
most recent federal census. 
    Sec. 15.  [1987 LEVY FOR HANDICAPPED ADULT PROGRAMS.] 
    Notwithstanding Minnesota Statutes 1986, section 275.125, 
subdivision 8, clause (4), in 1987 a school district may levy 
the amount by which the levy for handicapped adult programs for 
fiscal years 1986, 1987, and 1988 was reduced because of 
proration of program budgets according to Minnesota Statutes 
1986, section 121.88. 
    Sec. 16.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [ADULT BASIC AND CONTINUING EDUCATION AID.] For 
adult basic and continuing education aid according to Minnesota 
Statutes, section 124.26, there is appropriated:  
    $3,181,400 ..... 1988, 
    $4,126,500 ..... 1989.  
    Up to $200,000 each year may be used for contracts with 
private, nonprofit organizations for approved programs. 
    The amount appropriated for aid for fiscal year 1988 
includes $278,000 for aid for fiscal year 1987 payable in fiscal 
year 1988 and $2,903,400 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The amount appropriated for aid for fiscal year 1989 
includes $512,300 for aid for fiscal year 1988 payable in fiscal 
year 1989 and $3,614,200 for aid for fiscal year 1989 payable in 
fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$3,415,700 for fiscal year 1988 and $4,252,000 for fiscal year 
1989.  
    Subd. 3.  [ADULT HANDICAPPED PROGRAM AID.] For aid for 
handicapped adult programs according to Minnesota Statutes, 
section 124.271, there is appropriated:  
    $450,000 ..... 1988, 
    $550,000 ..... 1989.  
    Any unexpended balance remaining from the appropriations in 
this subdivision for 1988 does not cancel and is available for 
the second year of the biennium. 
    Subd. 4.  [COMMUNITY EDUCATION AID.] For community 
education aid according to Minnesota Statutes, section 124.271, 
there is appropriated:  
    $2,153,100 ..... 1988, 
    $3,257,500 ..... 1989.  
    The amount appropriated for aid for fiscal year 1988 
includes $260,100 for aid for fiscal year 1987 payable in fiscal 
year 1988 and $1,893,000 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The amount appropriated for aid for fiscal year 1989 
includes $334,000 for aid for fiscal year 1988 payable in fiscal 
year 1989 and $2,923,500 for aid for fiscal year 1989 payable in 
fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$2,227,000 for fiscal year 1988 and $3,439,300 for fiscal year 
1989.  
    Subd. 5.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
childhood family education aid according to Minnesota Statutes, 
section 124.2711, there is appropriated:  
    $7,279,000 ..... 1988, 
    $8,124,400 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$870,000 for aid for fiscal year 1987 payable in fiscal year 
1988 and $6,409,000 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$1,130,900 for aid for fiscal year 1988 payable in fiscal year 
1989 and $6,993,500 for aid for fiscal year 1989 payable in 
fiscal year 1989.  
    The appropriations are based on aid entitlements of 
$7,539,900 for fiscal year 1988 and $8,227,600 for fiscal year 
1989. 
    Subd. 6.  [HEALTH AND DEVELOPMENTAL SCREENING.] For health 
and developmental screening aid according to Minnesota Statutes, 
section 123.705, there is appropriated:  
    $436,400 ..... 1988, 
    $429,400 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$65,800 for aid for fiscal year 1987 payable in fiscal year 1988 
and $370,600 for aid for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$65,400 for aid for fiscal year 1988 payable in fiscal year 1989 
and $364,000 for aid for fiscal year 1989 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$436,000 for fiscal year 1988 and $428,200 for fiscal year 1989. 
    Subd. 7.  [HEARING IMPAIRED SUPPORT SERVICES AID.] For 
payment of support services for hearing impaired persons 
pursuant to section 121.201, there is appropriated: 
    $60,000..........1988, 
    $60,000..........1989. 
    The appropriations are based on aid entitlements of $60,000 
for fiscal year 1988 and $60,000 for fiscal year 1989. 
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1986, section 124.26, subdivisions 1 and 
6, are repealed. 

                                ARTICLE 5

                          STATE AGENCY SERVICES
    Section 1.  [APPROPRIATIONS; BOARD OF TEACHING.] 
    Subdivision 1.  There is appropriated from the general fund 
to the board of teaching the sums indicated in this section.  
Any unexpended balance remaining from the appropriations in this 
section for 1988 does not cancel and is available for the second 
year of the biennium. 
    Subd. 2.  [ASSESSMENT OF TEACHER PERFORMANCE.] For the 
purposes of designing an assessment procedure for the plan 
required in Laws 1985, First Special Session chapter 12, article 
8, section 48, there is appropriated: 
    $166,000 ..... 1988, 
    $166,000 ..... 1989. 
    Subd. 3.  [EXEMPLARY TEACHER EDUCATION PROGRAMS.] For 
development of exemplary teacher education programs under 
Minnesota Statutes, section 126.81, and dissemination and 
replication of program models: 
    $135,000 ..... 1988, 
    $135,000 ..... 1989. 
    Sec. 2.  [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated. 
    Subd. 2.  [OFFICE ON TRANSITION SERVICES.] For the 
interagency office on transition services under Minnesota 
Statutes, section 120.183 there is appropriated: 
    $77,000 ..... 1988, 
    $77,000 ..... 1989. 
    Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION.] For technical 
assistance to districts implementing early childhood family 
education programs there is appropriated:  
    $31,500 ..... 1988, 
    $31,500 ..... 1989.  
    Subd. 4.  [COMMUNITY EDUCATION ADVISORY TASK FORCE.] To 
carry out the responsibilities of the state community education 
advisory task force there is appropriated: 
    $25,000 ..... 1988. 
    The appropriation shall be available until the end of the 
biennium. 
    Subd. 5.  [MANAGEMENT INFORMATION CENTERS.] For management 
information centers according to Minnesota Statutes, section 
121.935, subdivision 5, there is appropriated: 
    $3,410,700 ..... 1988, 
    $3,410,700 ..... 1989. 
    The appropriations are based on aid entitlements of 
$3,410,700 for fiscal year 1988 and $3,410,700 for fiscal year 
1989.  Of this amount, $356,300 each year is for software 
support contracts made by the department of education. 
    Subd. 6.  [ACADEMIC EXCELLENCE FOUNDATION.] For the 
academic excellence foundation according to Minnesota Statutes, 
section 121.612, there is appropriated: 
    $100,000 ..... 1988, 
    $125,000 ..... 1989. 
    Up to $25,000 of the appropriation for fiscal year 1988 and 
up to $50,000 of the appropriation for fiscal year 1989 may be 
used for expenses related to developing and implementing a plan 
for an academic league. 
    Subd. 7.  [HEALTH AND WELLNESS CURRICULUM.] For development 
and dissemination of planning materials and guidelines to assist 
school districts in developing comprehensive health and wellness 
curriculum, there is appropriated: 
    $30,000 ..... 1988. 
    The appropriation is available until June 30, 1989.  
    The materials and guidelines shall include a kindergarten 
through 12th grade scope and sequence coordinated with total 
school curriculum.  
    Subd. 8.  [ADMINISTRATORS' ACADEMY.] There is appropriated 
for an administrators' academy: 
    $167,300 ..... 1988, 
    $167,300 ..... 1989.  
    $24,000 shall be used each year for the school management 
assessment center at the University of Minnesota. 
    Subd. 9.  [EDUCATIONAL EFFECTIVENESS.] For educational 
effectiveness programs according to Minnesota Statutes, sections 
121.608 and 121.609 there is appropriated: 
    $690,300 ..... 1988, 
    $690,300 ..... 1989. 
    $478,900 each year is for contracts for regional 
effectiveness coordinators.  
    Subd. 10.  [STATE PER ASSISTANCE.] For state assistance for 
planning, evaluating, and reporting there is appropriated: 
    $428,000 ..... 1988, 
    $661,000 ..... 1989. 
    Up to $45,000 each year shall be used for assisting 
districts with the assurance of mastery program.  
    Up to $95,000 each year shall be used to develop and 
maintain model learner expectations.  
    Up to $18,000 each year shall be used for the state 
curriculum advisory committee.  
    Up to $270,000 each year shall be used for the assessment 
item bank.  
    Up to $233,000 of the amount for 1989 shall be used for the 
local assessment program.  
    Subd. 11.  [CURRICULUM AND TECHNOLOGY INTEGRATION.] For 
curriculum and technology integration services there is 
appropriated: 
    $1,405,000 ..... 1988, 
    $ 722,000 ...... 1989. 
    Up to $450,000 in fiscal year 1988 and $317,000 in fiscal 
year 1989 shall be used for technology services.  
    Up to $355,000 each year shall be used for courseware 
integration centers.  
    Up to $50,000 each year may be used for disseminating 
information about technology innovations identified in the 
technology demonstration sites.  
    Up to $550,000 of the appropriation for 1988 shall be used 
according to Minnesota Statutes, section 129B.39 to purchase 
courseware duplication rights including principles of technology 
courseware. 
     Subd. 12.  [COMPREHENSIVE ARTS PLANNING PROGRAM.] For 
technical assistance for the comprehensive arts planning program 
according to Minnesota Statutes, section 129B.21, there is 
appropriated: 
    $37,500 ..... 1988, 
    $37,500 ..... 1989. 
    Subd. 13.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] For 
educational cooperative service units there is appropriated:  
    $748,000 ..... 1988, 
    $748,000 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$112,200 for aid for fiscal year 1987 payable in fiscal year 
1988 and $635,800 for aid for fiscal year 1988 payable in fiscal 
year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$112,000 for aid for fiscal year 1988 payable in fiscal year 
1989 and $635,800 for aid for fiscal year 1989 payable in fiscal 
year 1989.  
    The appropriations are based on aid entitlements of 
$748,000 for each fiscal year.  
    Funds from this appropriation may be transmitted to ECSU 
boards of directors for general operations in amounts of up to 
$68,000 per ECSU for each fiscal year; however, the ECSU whose 
boundaries coincide with the boundaries of development region 11 
and the ECSU whose boundaries encompass development regions six 
and eight may each receive up to $136,000 for each fiscal year 
for general operations.  
    Before releasing funds to the ECSUs, the department of 
education shall assure that the annual plan of each ECSU 
explicitly addresses the specific educational services that can 
be better provided by an ECSU than by a member district.  The 
annual plan must include methods to increase direct services to 
school districts in cooperation with the state department of 
education.  The ESCU plans for the 1988-1989 school year and 
after shall be coordinated with the management plan of the 
department of education that is required in article 10.  The 
department may withhold all or a portion of these funds from an 
ECSU if the department determines that the ECSU has not been 
providing services according to its annual plan. 
    Sec. 3.  [APPROPRIATIONS; DEPARTMENT OF EMPLOYEE 
RELATIONS.] 
     There is appropriated from the general fund to the 
department of employee relations the sum of $50,000 to develop a 
plan to allow teachers and school boards the option of 
participating in a state health benefits program.  The 
department must submit the plan to the legislature by February 
3, 1988. 

                               ARTICLE 6

               OTHER AIDS AND LEVIES FOR SCHOOL DISTRICTS
    Section 1.  [123.9362] [NOTICE TO DISTRICTS; PRORATION.] 
    In the event the appropriation for nonpublic educational 
aid under sections 123.931 to 123.947 is not sufficient to meet 
the required payments in any fiscal year, the department of 
education must notify the school districts at the earliest 
possible date of the need to prorate the appropriation among the 
districts.  
    Sec. 2.  Minnesota Statutes 1986, section 124.195, 
subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] The 
following aids shall be paid at 100 percent of the entitlement 
for the current fiscal year:  management information center 
subsidies, according to section 121.935, reimbursement for 
transportation to post-secondary institutions, according to 
section 123.3514, subdivision 8; reimbursement for 
transportation to a program of excellence, according to section 
126.62, subdivision 6; handicapped adult program aid, according 
to section 124.271, subdivision 7; arts education aid according 
to section 124.275; school lunch aid, according to section 
124.646; hearing impaired support services aid, according to 
section 121.201; technology demonstration site grants, according 
to section 129B.36 and courseware purchase subsidy according to 
section 129B.38 Indian post-secondary preparation grants 
according to section 124.481; and desegregation grants according 
to section 24. 
    Sec. 3.  [124.217] [EXCEPTIONAL NEED AID.] 
    Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
exceptional need revenue if all of the following apply to the 
district: 
    (a) The ratio of the average daily membership of pupils 
enrolled in the district to the number of licensed staff, 
measured in full-time equivalents, is greater than 17. 
    (b) The ratio of the referendum levy certified according to 
section 124A.02, subdivision 2, to the adjusted assessed 
valuation is greater than .006. 
    (c) The ratio of the total levy certified by the district 
to the adjusted assessed valuation is greater than .05. 
    (d) The ratio of the adjusted assessed valuation to the 
actual pupil units is less than $38,500. 
    (e) The unappropriated operating fund balance is less than 
$100 times the number of actual pupil units. 
    Before a school board certifies levies to the county 
auditor, the commissioner shall determine the district's 
eligibility for exceptional need revenue for the following 
school year.  Eligibility must be based on pupil and staff data 
from the prior year, levies certified in the prior year, 
adjusted assessed valuation in the prior year, and fund balances 
on June 30 of the same year. 
     Subd. 2.  [EXCEPTIONAL NEED REVENUE.] The exceptional need 
revenue for each district equals $75 times the number of actual 
pupil units. 
    Subd. 3.  [EXCEPTIONAL NEED AID.] A district's exceptional 
need aid is the difference between its exceptional need revenue 
and the exceptional need levy, multiplied times the ratio of the 
actual amount levied to the amount permitted to be levied. 
    Sec. 4.  [124.244] [CAPITAL EXPENDITURE REVENUE.] 
    Subdivision 1.  [REVENUE AMOUNT.] The capital expenditure 
revenue for each district equals $153 times its actual pupil 
units counted according to section 124.17, subdivision 1, for 
the school year.  
    Subd. 2.  [CAPITAL EXPENDITURE LEVY.] To obtain capital 
expenditure revenue, a district may levy an amount not to exceed 
three mills times the adjusted assessed valuation of the 
district for the preceding year.  
    Subd. 3.  [CAPITAL EXPENDITURE AID.] A district's capital 
expenditure aid is the difference between the capital 
expenditure revenue and the capital expenditure levy.  If a 
district does not levy the entire amount permitted, capital 
expenditure aid must be reduced in proportion to the actual 
amount levied.  
    Subd. 4.  [USES OF REVENUE.] Capital expenditure revenue 
may be used only for the following purposes:  
    (1) to acquire land for school purposes; 
    (2) to acquire or construct buildings for school purposes, 
if approved by the commissioner of education according to 
applicable statutes and rules; 
    (3) to rent or lease buildings for school purposes; 
    (4) to equip, reequip, improve, and repair school sites, 
buildings and permanent attached fixtures; 
    (5) to eliminate barriers or increase access to school 
buildings by handicapped individuals; 
    (6) to bring school buildings into compliance with the 
uniform fire code adopted according to chapter 299F; 
    (7) to remove asbestos from school buildings, encapsulate 
asbestos, or make asbestos-related repairs; 
    (8) to clean up and dispose of polychlorinated biphenyls 
found in school buildings; 
    (9) to clean up, remove, dispose of, and make repairs 
related to storing heating fuel or transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01; 
    (10) for energy audits for school buildings and to make 
modifications if the audit indicates the costs can be recovered 
within ten years; 
    (11) to improve buildings that are leased according to 
section 123.36, subdivision 10; 
    (12) to pay special assessments levied against school 
property but not to pay assessments for service charges; 
    (13) to pay capital expenditure assessments of an 
educational cooperative service unit; 
    (14) to pay principal and interest on state loans for 
energy conservation according to section 116J.37 or loans made 
under the northeast Minnesota economic protection trust fund act 
according to sections 298.292 to 298.298; 
    (15) to purchase or lease computers and related materials, 
copying machines, and telecommunications equipment; 
    (16) to purchase or lease equipment for secondary 
vocational education programs or senior secondary industrial 
arts programs; and 
    (17) to purchase textbooks.  
    Sec. 5.  Minnesota Statutes 1986, section 124.245, 
subdivision 3, is amended to read:  
    Subd. 3.  [HAZARDOUS SUBSTANCE COMPUTATION.] For the 
1987-1988 school year, the state shall pay a school district the 
difference by which an amount equal to $25 times the total pupil 
units exceeds the amount raised by two mills times the adjusted 
assessed valuation used to compute the levy attributable to the 
same year.  To qualify for aid pursuant to this subdivision in 
any school year, a district must levy pursuant to section 
275.125, subdivision 11c for use in that year.  Aid paid 
pursuant to this subdivision may be used only for the purposes 
for which the proceeds of the levy authorized in section 
275.125, subdivision 11c may be used.  
    Sec. 6.  Minnesota Statutes 1986, section 124.245, is 
amended by adding a subdivision to read: 
    Subd 3a.  [HAZARDOUS SUBSTANCE PLAN.] To receive hazardous 
substance capital expenditure aid for the 1988-1989 school year 
or later school years, or to levy under section 275.125, 
subdivision 11c, a district shall submit to the commissioner of 
education an application for aid and levy by August 15 in the 
previous school year.  The application shall contain the 
following: 
    (a) a plan for the removal or encapsulation of asbestos 
from school buildings or property, asbestos-related repairs, 
cleanup and disposal of polychlorinated biphenyls found in 
school buildings or property, and cleanup, removal, disposal, 
and repairs related to storing heating or transportation fuels 
such as alcohol, gasoline, fuel oil, and special fuel, as 
defined in section 296.01; 
    (b) the estimated cost of the plan by fiscal year; and 
    (c) other information required by the commissioner. 
    The commissioner may approve applications based on criteria 
disseminated to school districts by July 15 in the previous 
school year. 
    Sec. 7.  Minnesota Statutes 1986, section 124.245, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [HAZARDOUS SUBSTANCE REVENUE AND AID.] (a) A 
district's "hazardous substance revenue" equals the approved 
cost of the hazardous substance plan for the school year to 
which the levy is attributable, minus the unexpended portion of 
levies certified by the district in earlier years under section 
275.125, subdivision 11c. 
    (b) A district's "hazardous substance levy limitation" 
means its levy limitation computed according to section 275.125, 
subdivision 11c. 
    (c) A district's "hazardous substance aid" for 1988-1989 
and later school years equals: 
    (i) the difference between its hazardous substance revenue 
and its hazardous substance levy limitation for the levy for 
that school year, multiplied by 
    (ii) the ratio of the amount actually levied to the amount 
of its hazardous substance by levy limitation. 
    (d) Aid paid under this subdivision may be used only for 
the purposes for which the proceeds of the levy authorized in 
section 275.125, subdivision 11c, may be used. 
    (e) In the event that the aid available for any year is 
prorated, a district having its aid prorated may levy an 
additional amount equal to the amount not paid by the state due 
to proration. 
    Sec. 8.  Minnesota Statutes 1986, section 124.246, 
subdivision 2, is amended to read: 
    Subd. 2.  [AID.] An eligible district shall receive $1.08 
in fiscal years 1985, 1986, and 1987 and 1988, for each pupil, 
in average daily membership, enrolled in a public elementary, 
secondary or area vocational technical or nonpublic elementary 
or secondary school.  Aid for nonpublic school pupils shall be 
paid to the district upon request by or on behalf of the 
pupils.  No district shall receive less than $1,080 in fiscal 
years 1985, 1986, and 1987 and 1988. 
    Sec. 9.  Minnesota Statutes 1986, section 124.247, 
subdivision 3, is amended to read: 
    Subd. 3.  [AID.] A district which establishes a program for 
gifted and talented students shall receive for the purpose of 
this program an amount equal to $19 in the 1984-1985 school 
year, times the number of gifted and talented students in the 
district.  In the 1985-1986 school year and later school years, 
a district shall receive the greater of $40 per gifted and 
talented student or $500 per district.  No more than five 
percent of the students enrolled in the district shall be 
counted as gifted and talented for the purpose of aid 
computations pursuant to this subdivision.  No more than five 
percent of the money received by a district pursuant to this 
subdivision may be expended for the purpose of administration of 
the program for gifted and talented students. 
    Sec. 10.  Minnesota Statutes 1986, section 124.252, 
subdivision 3, is amended to read: 
    Subd. 3.  [DISTRICT AID.] An eligible district shall 
receive 52 cents in fiscal year 1986 and 54 cents in fiscal year 
1987 and each year thereafter for each pupil, in average daily 
membership enrolled in a public elementary, secondary, or area 
vocational technical institute or nonpublic elementary or 
secondary school.  Aid for nonpublic school pupils shall be paid 
to the district upon request by or on behalf of the pupils.  No 
school district shall receive less than $1,000 in fiscal year 
1986 and $1,040 in fiscal year 1987 and each year thereafter.  
    Sec. 11.  Minnesota Statutes 1986, section 124.646, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] (a) For the 
1985-1986 Each school year, school districts participating in 
the national school lunch program shall be paid by the state in 
the amount of 7.5 cents for each full paid student lunch served 
to students in the district.  
    (b) For the 1986-1987 Each school year, school districts 
participating in the national school lunch program shall be paid 
by the state in the amount of 7.5 cents for each full paid 
student lunch served to students in the district. 
    Sec. 12.  Minnesota Statutes 1986, section 275.125, 
subdivision 6e, is amended to read: 
    Subd. 6e.  [DESEGREGATION LEVY.] Each year any district 
which is implementing a plan for desegregation mandated by the 
state board of education or under court order, school district 
No. 625, St. Paul, may levy an amount not to exceed one mill 
times the adjusted assessed valuation of the district.  
Notwithstanding section 121.904, the entire amount of this levy 
shall be recognized as revenue for the fiscal year in which the 
levy is certified.  This levy shall not be considered in 
computing the aid reduction under section 124.155.  A If the 
district which levies pursuant to under this subdivision, it may 
not place the proceeds of the 1983 payable 1984 levy authorized 
by subdivision 9a, in the general fund.  
    Sec. 13.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 6f.  [EXCEPTIONAL NEED LEVY.] To obtain exceptional 
need revenue, a district may levy an amount not to exceed the 
lesser of its exceptional need revenue or the result of the 
following computation: 
    (a) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the actual pupil 
units for the year to which the levy is attributable. 
    (b) Divide the result in paragraph (a) by the ratio of the 
formula allowance, established in article 1, section 6, 
subdivision 2, to the general education mill rate, established 
in article 1, section 7, subdivision 1, for the year to which 
the levy is attributable. 
    (c) Multiply the result in paragraph (b) by the district's 
exceptional need revenue for the year to which the levy is 
attributable. 
    Sec. 14.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read:  
    Subd. 6h.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY 
LEVY.] Each year special school district No. 1, Minneapolis, may 
make an additional levy not to exceed the amount raised by .1 
mill times the adjusted assessed valuation of the property in 
the district for the preceding year.  In addition, in 1987 the 
district may levy an amount not to exceed the amount raised by 
.1 mill times the adjusted assessed valuation of the property in 
the district for the preceding year for health insurance 
subsidies for fiscal year 1988.  The proceeds may be used only 
to subsidize health insurance costs for eligible teachers as 
provided in this section.  
    "Eligible teacher" means a retired teacher who was a basic 
member of the Minneapolis teachers retirement fund association, 
who retired before May 1, 1974, and who is not eligible to 
receive the hospital insurance benefits of the federal Medicare 
program of the Social Security Act without payment of a monthly 
premium.  The district shall notify eligible teachers that a 
subsidy is available.  An eligible teacher may submit to the 
school district a copy of receipts for health insurance premiums 
paid during the previous 12-month period.  The school district 
shall disburse the health insurance premium subsidy to each 
eligible teacher in a timely and efficient manner.  An eligible 
teacher may receive a subsidy up to an amount equal to the 
lesser of 90 percent of the cost of the eligible teacher's 
health insurance or up to 90 percent of the cost of the number 
two qualified plan of health coverage for individual policies 
made available by the Minnesota comprehensive health association 
under Minnesota Statutes, chapter 62E.  
    If funds remaining from the previous year's health 
insurance subsidy levy, minus the previous year's required 
subsidy amount, are sufficient to pay the estimated current year 
subsidy, the levy must be discontinued until the remaining funds 
are estimated by the school board to be insufficient to pay the 
subsidy. 
    Sec. 15.  Minnesota Statutes 1986, section 275.125, 
subdivision 11c, is amended to read:  
    Subd. 11c.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE LEVY.] 
In addition to the levy authorized in subdivisions 11a and 11b, 
each year a school district may levy an amount not to exceed the 
amount equal to $25 times the total pupil units in the year to 
which the levy is attributable.  No levy under this subdivision 
shall exceed two mills times the adjusted assessed valuation of 
the property in the district for the preceding year.  Each year, 
a district with a hazardous substance plan approved by the 
commissioner of education under section 6 may levy an amount 
equal to the following product: 
    (a) the district's hazardous substance revenue as defined 
in section 7 for the year to which the levy is attributable, 
times 
    (b) the lesser of one, or the ratio of: 
    (i) the quotient derived by dividing the adjusted assessed 
valuation of the district for the year preceding the year the 
levy is certified by the total pupil units in the district for 
the school year to which the levy is attributable, to 
    (ii) 50 percent of the equalizing factor for the school 
year to which the levy is attributable. 
    The proceeds of the tax shall be placed in the district's 
capital expenditure fund and may be used only for expenditures 
necessary for the removal or encapsulation of asbestos from 
school buildings or property, asbestos related repairs, cleanup 
and disposal of polychlorinated biphenyls found in school 
buildings or property, or the cleanup, removal, disposal, and 
repairs related to storing heating fuel or transportation fuels 
such as alcohol, gasoline, fuel oil, and special fuel, as 
defined in section 296.01. 
    Sec. 16.  Laws 1984, chapter 463, article 6, section 15, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORIZATION.] In 1985 and each year 
thereafter, the newly created district formed by the 
consolidation of Independent School District No. 694, Buhl, and 
Independent School District No. 703, Mountain Iron, may make an 
additional levy to eliminate a deficit in the net unappropriated 
operating funds of the newly created district, determined as of 
June 30, 1985, and certified and adjusted by the commissioner.  
This levy each year may be an amount not to exceed 1.5 4.0 mills 
times the adjusted assessed valuation of the newly created 
district for the preceding year as determined by the 
equalization aid review committee.  When the cumulative amount 
of the levies made pursuant to this subdivision equals the total 
amount of the certified deficit of the newly created district, 
the levy shall be discontinued. 
    Sec. 17.  Laws 1986, First Special Session chapter 1, 
article 5, section 9, is amended to read: 
    [124.196] [TEMPORARY CHANGE IN PAYMENT OF AIDS AND CREDITS 
TO SCHOOL DISTRICTS.] 
    If the commissioner of finance determines that 
modifications in the payment schedule are required to avoid 
state short-term borrowing, the commissioner of education shall 
modify payments to school districts according to this section.  
The modifications shall begin no sooner than September 1, 1986 
of each fiscal year, and shall remain in effect until no later 
than May 30, 1987 of that same fiscal year.  In calculating the 
payment to a school district pursuant to Minnesota Statutes, 
section 124.195, subdivision 3, the commissioner may subtract 
the sum specified in that subdivision, plus an additional amount 
no greater than the following: 
    (1) the net cash balance in the district's four operating 
funds on June 30, 1986 of the preceding fiscal year; minus 
    (2) the product of $150 times the number of actual pupil 
units in the 1985-1986 school preceding fiscal year; minus 
    (3) the amount of payments made by the county treasurer 
during the preceding fiscal year 1986, pursuant to Minnesota 
Statutes, section 276.11, which is considered revenue for the 
1986-1987 current school year.  However, no additional amount 
shall be subtracted if the total of the net unappropriated fund 
balances in the district's four operating funds on June 30, 1986 
of the preceding fiscal year, is less than the product of $350 
times the number of actual pupil units in the 1985-1986 school 
preceding fiscal year.  The net cash balance shall include all 
cash and investments, less certificates of indebtedness 
outstanding, and orders not paid for want of funds. 
    A district may appeal the payment schedule established by 
this section according to the procedures established in 
section 7 124.195, subdivision 3a. 
    Sec. 18.  [DESEGREGATION COSTS.] 
    By July 1, 1987, districts implementing desegregation plans 
mandated by the state board of education shall submit plans to 
the state board for using the desegregation grants authorized 
under section 19, subdivision 12.  The plans must identify costs 
in the following categories according to the state's uniform 
accounting and reporting standards:  district and school 
administration; district support services; regular, vocational, 
and special instruction; instructional support services; pupil 
support services, including transportation; and site, buildings 
and equipment.  The plans must include information on the 
methods used to calculate desegregation costs in each category.  
By August 1, 1987, the state board shall approve or disapprove 
the plans and award grants to the districts with approved plans. 
    By February 1, 1988, the state board of education shall 
make recommendations regarding the funding of desegregation 
costs to the governor and the education committees of the 
legislature.  The report shall identify desegregation costs in 
the categories required in the districts' plans according to the 
state's uniform accounting and reporting standards.  The report 
must include information on the methods used by the districts to 
calculate desegregation costs in each category. 
    Sec. 19.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund, or another named fund, to 
the department of education the sums indicated in this section 
for the fiscal years ending June 30 in the years designated.  
    Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
Minnesota Statutes, section 124.214, there is appropriated:  
    $6,592,800 ..... 1988, 
    $6,592,800 ..... 1989.  
    Subd. 3.  [ARTS EDUCATION AID.] For arts education aid 
according to Minnesota Statutes, section 124.275, there is 
appropriated:  
    $1,048,700 ..... 1988. 
    Subd. 4.  [CAPITAL EXPENDITURE AID.] For capital 
expenditure aid according to Minnesota Statutes, section 
124.245, for fiscal year 1988 and section 1 for fiscal year 
1989, there is appropriated:  
     $   473,600 ..... 1988, 
    $31,967,900 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$45,200 for aid for fiscal year 1987 payable in fiscal year 1988 
and $428,400 for aid for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$75,500 for aid for fiscal year 1988 payable in fiscal year 1989 
and $31,892,400 for aid for 1989 payable in fiscal year 1989. 
    The appropriations are based on aid entitlements of 
$503,900 for fiscal year 1988 and $37,520,400 for fiscal year 
1989. 
    Subd. 5.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE.] For 
hazardous substance capital expenditure aid according to 
Minnesota Statutes, section 124.245, there is appropriated:  
    $50,600 ..... 1988, 
     $58,700 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$6,800 for aid for fiscal year 1987 payable in fiscal year 1988 
and $43,800 for aid for fiscal year 1988 payable in fiscal year 
1988.  
    The appropriation for aid for fiscal year 1989 includes 
$7,700 for aid for fiscal year 1988 payable in fiscal year 1989 
and $51,000 for aid for fiscal year 1989 payable in fiscal year 
1989. 
    The appropriations are based on aid entitlements of $51,500 
for fiscal year 1988 and $60,000 for fiscal year 1989.  
    Subd. 6.  [CHEMICAL ABUSE PROGRAMS.] For aid for chemical 
abuse programs according to Minnesota Statutes, section 124.246, 
there is appropriated:  
    $1,023,700 ..... 1988, 
     $  153,600 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$153,000 for aid for fiscal year 1987 payable in fiscal year 
1988 and $870,700 for aid for fiscal year 1988 payable in fiscal 
year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$153,600 for aid for fiscal year 1988 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$1,024,300 for fiscal year 1988.  
    Subd. 7.  [GIFTED AND TALENTED AID.] For aid for gifted and 
talented education programs according to Minnesota Statutes, 
section 124.247, there is appropriated:  
    $1,372,500 ..... 1988, 
     $  205,900 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$205,700 for aid for fiscal year 1987 payable in fiscal year 
1988 and $1,166,800 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$205,900 for aid for fiscal year 1988 payable in fiscal year 
1989. 
    The appropriations are based on aid entitlements of 
$1,372,700 for fiscal year 1988.  
    Subd. 8.  [INTERDISTRICT COOPERATION AID.] For aid for 
interdistrict cooperation according to Minnesota Statutes, 
section 124.272, there is appropriated:  
    $2,306,000 ..... 1988, 
     $  360,000 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$265,900 for aid for fiscal year 1987 payable in fiscal year 
1988 and $2,040,100 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$360,000 for aid for fiscal year 1988 payable in fiscal year 
1989.  
    The appropriations are based on aid entitlements of 
$2,400,100 for fiscal year 1988.  
    Subd. 9.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] For the 
maximum effort school loan fund there is appropriated:  
    $1,615,200 ..... 1988, 
    $2,025,100 ..... 1989.  
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in Minnesota Statutes, section 124.46, to the extent that money 
in the fund is not sufficient to pay when due the full amount of 
principal and interest due on school loan bonds.  The purpose of 
these appropriations is to ensure that sufficient money is 
available in the fund to prevent a statewide property tax levy 
as would otherwise be required pursuant to Minnesota Statutes, 
section 124.46, subdivision 3.  Notwithstanding the provisions 
of Minnesota Statutes, section 124.39, subdivision 5, any amount 
of the appropriation made in this section which is not needed to 
pay when due the principal and interest due on school loan bonds 
shall not be transferred to the debt service loan account of the 
maximum effort school loan fund but instead shall cancel and 
revert to the general fund. 
    Subd. 10.  [NONPUBLIC PUPIL AIDS.] For nonpublic pupil 
education aids according to Minnesota Statutes, sections 123.931 
to 123.947, there is appropriated:  
    $8,230,500 ..... 1988, 
    $8,869,500 ..... 1989.  
    The appropriation for aid for fiscal year 1988 includes 
$1,087,100 for aid for fiscal year 1987 payable in fiscal year 
1988 and $7,143,400 for aid for fiscal year 1988 payable in 
fiscal year 1988.  
    The appropriation for aid for fiscal year 1989 includes 
$1,260,500 for aid for fiscal year 1988 payable in fiscal year 
1989 and $7,609,000 for aid for 1989 payable in fiscal year 1989.
    The appropriations are based on aid entitlements of 
$8,403,900 for fiscal year 1988 and $8,951,700 for fiscal year 
1989. 
    Subd. 11.  [SCHOOL LUNCH AND FOOD STORAGE AID.] For school 
lunch aid according to Minnesota Statutes, section 124.646, and 
for food storage and transportation costs for USDA donated 
commodities there is appropriated:  
    $4,625,000 ..... 1988, 
    $4,625,000 ..... 1989.  
    Any unexpended balance remaining from the appropriations in 
this subdivision shall be prorated among participating schools 
based on the number of fully-paid lunches served during that 
school year in order to meet the state revenue matching 
requirement of the USDA National School Lunch Program.  
    If the appropriation amount attributable to either year is 
insufficient, the rate of payment for each fully-paid student 
lunch shall be reduced and the aid for that year shall be 
prorated among participating schools so as not to exceed the 
total authorized appropriation for that year.  
    Subd. 12.  [DESEGREGATION GRANTS.] For grants to districts 
implementing desegregation plans mandated by the state board: 
    $11,557,300 .... 1988. 
    Of this amount, $4,766,500 shall be allocated to 
independent school district No. 625, Saint Paul; $5,667,700 to 
special school district No. 1, Minneapolis; and $1,123,100 to 
independent school district No. 709, Duluth. 
     Subd. 13.  [EXCEPTIONAL NEED AID.] For exceptional need aid 
there is appropriated: 
     $125,700 .... 1989. 
     The appropriation is for aid for fiscal year 1989 payable 
in fiscal year 1989. 
     The appropriation is based on an aid entitlement of 
$147,800 for fiscal year 1989. 
    Subd. 14.  [TOBACCO USE PREVENTION AID.] For tobacco use 
prevention aid according to Minnesota Statutes, section 124.252, 
there is appropriated from the public health fund:  
    $633,000 ..... 1988, 
    $659,600 ..... 1989. 
    Sec. 20.  [REPEALER.] 
    Subdivision 1.  [JUNE 30, 1987.] Minnesota Statutes 1986, 
section 275.125, subdivisions 11a and 12, are repealed July 1, 
1987.  
    Subd. 2.  [JUNE 30, 1988.] Minnesota Statutes 1986, 
sections 124.245, subdivisions 1 and 2; and 124.275, are 
repealed June 30, 1988.  
    Subd. 3.  [EFFECT OF REPEALER.] According to Minnesota 
Statutes, section 645.35, the repeal of the sections listed in 
this section does not affect the right of a school district to 
receive nor the obligation of the commissioner of education to 
pay aids attributable to the 1987-1988 school year and payable 
in fiscal year 1989 under or by virtue of the sections repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
    Section 4 is effective for the levies certified in 1987 for 
the 1988-1989 school year and thereafter. 
    Sec. 22.  [LOCAL APPROVAL.] 
    Under Minnesota Statutes, section 645.023, subdivision 1, 
clause (a), section 16 is effective without local approval 
unless the voters of independent school district No. 712, 
Mountain Iron-Buhl, request a referendum on its approval. 
    The voters may request a referendum by filing a petition 
with the school board of independent school district No. 712.  
The petition must state the text of section 16 and indicate that 
those who sign the petition are residents of independent school 
district No. 712 and are at least 18 years of age.  The petition 
must be signed by a number of persons equal to at least ten 
percent of the number of persons who cast votes for school board 
members at the last regular election in school district No. 712. 

                               ARTICLE 7

                             MISCELLANEOUS
    Section 1.  Minnesota Statutes 1986, section 118.12, is 
amended to read: 
    118.12 [INVESTMENT OF TOWN AND SCHOOL DISTRICT FUNDS.] 
    When the town board of any town or the school board of any 
school district in this state, by a unanimous resolution, deem 
it advisable, such town board or school board may invest such 
amount of funds in such town or school treasury as will not, in 
the opinion of such board, be needed by such town or school 
district during the fiscal year, in any of the bonds of any 
county, city, town, school district, drainage or other district 
created pursuant to law for public purposes in Minnesota, Iowa, 
Wisconsin, and North and South Dakota, or in bonds of the United 
States of America, or in the bonds of any city, county, town, 
school district, drainage or other district created pursuant to 
law for public purposes in the United States, containing at 
least 3,500 inhabitants, provided that the total bonded 
indebtedness of any such municipality or district shall not 
exceed ten percent of its assessed valuation.  
    Sec. 2.  Minnesota Statutes 1986, section 118.13, is 
amended to read: 
    118.13 [DEPOSIT OF SECURITIES.] 
    Any town board or school district board investing such 
surplus funds in such authorized securities as provided in 
section 118.12 shall deposit such securities for safekeeping 
with the county treasurer of the county wherein such town or 
school district is located or with any bank maintaining a 
safekeeping department.  Such county treasurer or bank shall 
give a receipt for each and all of such securities to the town 
board or school district board, as the case may be, and such 
county treasurer or bank shall keep such securities for 
safekeeping until such time as such town board or school 
district board shall adopt a resolution requesting the county 
treasurer or bank to turn such securities or any of them over to 
the treasurer of such town or school district.  
    Sec. 3.  Minnesota Statutes 1986, section 118.14, is 
amended to read: 
    118.14 [EXCLUSION OF INVESTED FUNDS FROM BOND COVERAGE.] 
    The funds invested in such securities and deposited by the 
town board or school board, as provided in section 118.13, shall 
not be included within the amount of money for which the town 
treasurer or school treasurer is required by law to give a bond 
to the town or school district.  
    Sec. 4.  Minnesota Statutes 1986, section 120.0752, is 
amended by adding a subdivision to read: 
    Subd. 3.  [11TH AND 12TH GRADE STUDENTS.] Notwithstanding 
subdivision 2, an eleventh or twelfth grade pupil who has been 
enrolled in a district for at least three consecutive years and 
whose parent or guardian moves to another district, may continue 
to enroll in the nonresident district upon the approval of the 
school board of the nonresident district.  The approval of the 
school board of the pupil's resident district is not required.  
The pupil shall be considered a resident of the district in 
which that student is enrolled. 
    Sec. 5.  Minnesota Statutes 1986, section 121.11, is 
amended by adding a subdivision to read: 
    Subd. 16.  [COURSES OFFERED IN SUMMER.] A school board may 
comply with curriculum rules of the state board by offering any 
elective secondary course during the summer. 
    Sec. 6.  Minnesota Statutes 1986, section 121.612, 
subdivision 3, is amended to read:  
    Subd. 3.  [FOUNDATION PROGRAMS.] The foundation shall plan 
for programs which advance the concept of educational 
excellence.  These may include but are not limited to:  
    (a) recognition programs and awards for students 
demonstrating academic excellence;  
    (b) summer institute programs for students with special 
talents;  
    (c) recognition programs for teachers, administrators, and 
others who contribute to academic excellence;  
    (d) summer mentorship programs with business and industry 
for students with special career interests and high academic 
achievements; and 
    (e) governor's awards ceremonies to promote academic 
competition; and 
    (f) consideration of the establishment of a Minnesota high 
school academic league.  
    To the extent possible, the foundation shall make these 
programs available to students in all parts of the state.  
    Sec. 7.  Minnesota Statutes 1986, section 121.612, is 
amended by adding a subdivision to read:  
    Subd. 3a.  [ACADEMIC LEAGUE PLANS.] The academic excellence 
foundation shall develop a plan for an academic league to 
promote academic excellence through organized challenges 
requiring both cooperation and competition for public and 
nonpublic pupils in elementary and secondary schools.  The 
foundation shall develop the plan in consultation with 
administrators of existing programs of academic competition and 
cooperation, the Minnesota state high school league, and the 
Minnesota association of secondary school principals.  The 
foundation shall submit the plans to the education committees of 
the legislature by January 15, 1989.  
    Sec. 8.  Minnesota Statutes 1986, section 121.612, 
subdivision 5, is amended to read:  
    Subd. 5.  [REPORT.] By February 1, 1984, and February 1, 
1985, The board of directors of the foundation shall submit an 
annual report to the education committees of the legislature on 
the progress of its activities made pursuant to the provisions 
of this section.  The annual report shall contain a financial 
report for the preceding year, including all receipts and 
expenditures of the foundation. 
    Sec. 9.  Minnesota Statutes 1986, section 121.612, is 
amended by adding a subdivision to read: 
    Subd. 6.  [FOUNDATION PUBLICATIONS.] The foundation may 
publish brochures or booklets relating to the purposes of the 
foundation.  The foundation may collect reasonable fees for the 
publications. 
    Sec. 10.  Minnesota Statutes 1986, section 121.612, is 
amended by adding a subdivision to read: 
    Subd. 7.  [APPROPRIATION.] There is annually appropriated 
to the academic excellence foundation any and all amounts 
received by the foundation pursuant to section 9. 
    Sec. 11.  Minnesota Statutes 1986, section 121.935, 
subdivision 6, is amended to read:  
    Subd. 6.  [FEES.] Regional management information centers 
may charge fees to affiliated districts for the cost of services 
provided to the district and the district's proportionate share 
of outstanding regional debt.  If a district uses a state 
approved alternative finance system for processing its detailed 
transactions or transfers to another region, the district is 
liable for its contracted proportionate share of the outstanding 
regional debt.  The district is not liable for any additional 
outstanding regional debt that occurs after written notice is 
given to transfer or use an alternative finance system.  In no 
event shall the annual fee of a district participating in a 
state pilot program of an alternative financial management 
information system exceed the annual fee chargeable to the 
district in the absence of the pilot program.  
    Sec. 12.  Minnesota Statutes 1986, section 121.936, 
subdivision 1, is amended to read:  
    Subdivision 1.  [MANDATORY PARTICIPATION.] (a) Every 
district shall perform financial accounting and reporting 
operations on a financial management accounting and reporting 
system utilizing multidimensional accounts and records defined 
in accordance with the uniform financial accounting and 
reporting standards adopted by the state board pursuant to 
sections 121.90 to 121.92.  
    (b) Every school district shall be affiliated with one and 
only one regional management information center.  This 
affiliation shall include at least the following components:  
    (1) the center shall provide reports to the department of 
education for the district to the extent required by the data 
acquisition calendar;  
    (2) the district shall process every detailed financial 
transaction using, at the district's option, either the ESV-IS 
finance subsystem through the center or an alternative system 
approved by the state board. 
    Notwithstanding the foregoing, a district may process and 
submit its financial data to a region or the state in summary 
form if it operates an approved alternative system or 
participates in a state approved pilot test of an alternative 
system and is reporting directly to the state as of January 1, 
1987.  
    (c) The provisions of this subdivision shall not be 
construed to prohibit a district from purchasing services other 
than those described in clause (b) from a center other than the 
center with which it is affiliated pursuant to clause (b). 
    Districts operating an approved alternative system or 
participating in a state approved pilot test of an alternative 
financial system shall purchase finance system services from any 
region if the region of affiliation does not offer alternative 
system support services may transfer their affiliation from one 
regional management information center to another.  At least one 
year prior to July 1 of the year in which the transfer is to 
occur, the district shall give written notice to its current 
region of affiliation of its intent to transfer to another 
region.  The one year notice requirement may be waived if the 
two regions mutually agree to the transfer.  
    Sec. 13.  Minnesota Statutes 1986, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 5.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
school district may maintain in a designated for certain 
severance pay account not more than 50 percent of the amount 
necessary to meet the obligations for the portion of severance 
pay that constitutes compensation for accumulated sick leave to 
be used for payment of premiums for group insurance provided for 
former employees by the district.  The amount necessary shall be 
calculated according to standards established by the advisory 
council on uniform financial accounting and reporting 
standards.  If there is a deficit in any year in any reserved 
fund balance account, the district shall transfer the amount 
necessary to eliminate the deficit from the designated for 
certain severance pay account to the reserved fund balance 
account. 
    Sec. 14.  Minnesota Statutes 1986, section 121.932, 
subdivision 3, is amended to read:  
    Subd. 3.  [EXEMPTION FROM CHAPTER 14.] Except as provided 
in section 121.931, subdivision 8, the development of the data 
element dictionary pursuant to subdivision 1, and the, annual 
data acquisition calendar pursuant to subdivision 2, shall be, 
and essential data elements are exempt from the administrative 
procedure act but, to the extent authorized by law to adopt 
rules, the board may use the provisions of section 14.38, 
subdivisions 5 to 9. 
    Sec. 15.  Minnesota Statutes 1986, section 121.932, is 
amended by adding a subdivision to read: 
    Subd. 5.  [ESSENTIAL DATA.] The department shall maintain a 
list of essential data elements which must be recorded and 
stored about each pupil, licensed and nonlicensed staff member, 
and educational program.  Each school district shall send the 
essential data to the ESV regional computer center to which it 
belongs, where it shall be assembled and transmitted to the 
department in the form and format prescribed by the department.  
    Sec. 16.  Minnesota Statutes 1986, section 121.934, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CREATION.] An advisory council to the 
state board consisting of 11 members appointed by the governor 
is hereby established.  Section 15.059, subdivisions 2, 4, and 
5, shall govern membership terms, compensation of members, 
removal of members, and the filling of membership vacancies 
shall be as provided in section 15.059.  The governor is 
encouraged to solicit the suggestions of the state board, the 
governing boards of regional management information centers, and 
school boards in selecting members of the council.  
    Sec. 17.  Minnesota Statutes 1986, section 121.934, 
subdivision 2, is amended to read:  
    Subd. 2.  [MEMBERSHIP.] The council shall be composed of:  
    (a) four representatives of school districts, including one 
school district administrator from a rural school district, one 
school district administrator from an urban school district, one 
school board member from a rural school district, and one school 
board member from an urban school district; 
    (b) three persons employed in management positions in the 
private sector, at least two of whom are data processing 
managers or hold an equivalent position in the private sector; 
    (c) three persons employed in management positions in the 
public sector other than elementary, secondary, or vocational 
education, at least two of whom are data processing managers or 
hold an equivalent position in the public sector; and 
    (d) one person from the general public; and 
    (e) one person from the department of education.  
    Members selected pursuant to clauses (b) and (c) shall not 
be employees or board members of local school districts or the 
department of education.  The council shall include at least one 
resident of each congressional district.  
    Sec. 18.  Minnesota Statutes 1986, section 121.934, 
subdivision 6, is amended to read:  
    Subd. 6.  [STAFF AND SUPPORT SERVICES.] The state board 
shall employ with the concurrence of the council one 
professional individual, experienced in managing data processing 
services, who shall be in the unclassified civil service, who 
shall not be a member of the council, and who shall provide 
staff assistance to the council.  The state board commissioner 
shall provide all necessary materials and assistance for the 
transaction of to transact the business of the council.  The 
expenses of undertaking the duties in this section shall be paid 
for from appropriations made to the state board of 
education.  The commissioner is not required to pay compensation 
or expenses of the council. 
    Sec. 19.  Minnesota Statutes 1986, section 122.541, 
subdivision 2, is amended to read: 
    Subd. 2.  [AID; TRANSPORTATION.] A district entering into 
an agreement permitted in subdivision 1 shall:  
    (1) Continue to count its resident pupils who are educated 
in a cooperating district as resident pupils in the calculation 
of pupil units for all purposes, including the calculation of 
state aids and levy limitations.  Notwithstanding section 
124.18, subdivision 2, an agreement permitted by subdivision 1 
shall provide for the tuition payments the cooperating districts 
determine are necessary and equitable to compensate each 
district for the instruction of nonresident pupils; and 
    (2) Continue to provide transportation and collect 
transportation aid for its resident pupils pursuant to sections 
123.39, 124.222 and 124.223, and 124.225.  This clause shall not 
be construed to prohibit a district from providing some or all 
transportation to its resident pupils by contracting with a 
district which that has entered the agreement.  For purposes of 
aid calculations pursuant to section 124.222 124.225, the 
commissioner may adjust the base cost per eligible pupil 
transported to reflect changes in costs resulting from an 
agreement which provides for a district to discontinue at least 
one grade.  
    Sec. 20.  Minnesota Statutes 1986, section 123.35, is 
amended by adding a subdivision to read: 
    Subd. 16.  [SCHOOL NURSE.] By July 1, 1988, a board of a 
district with 1,000 pupils or more must employ at least one 
full-time licensed school nurse.  The board may contract with a 
public health agency for nursing services.  The board shall not 
reduce the number of licensed school nurses that it employed 
during the 1986-1987 school year, except, if the enrollment of 
the district declines, the district may reduce the equivalent 
services of licensed school nurses proportionately.  
    Sec. 21.  Minnesota Statutes 1986, section 123.36, 
subdivision 13, is amended to read:  
    Subd. 13.  [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 
sale or exchange of school buildings or real property of the 
school district shall be used as provided in this subdivision. 
    (1) In districts with outstanding bonds, the proceeds of 
the sale or exchange shall first be deposited in the debt 
retirement fund of the district in an amount sufficient to meet 
when due that percentage of the principal and interest payments 
for outstanding bonds which is ascribable to the payment of 
expenses necessary and incidental to the construction or 
purchase of the particular building or property which is sold.  
    (2) After satisfying the requirements of clause (1), a 
district with outstanding bonds may deposit proceeds of the sale 
or exchange in its capital expenditure fund if the amount 
deposited is used for the following:  
    (a) for energy audits on district owned buildings conducted 
pursuant to chapter 116H, and for funding those energy 
conservation and renewable energy measures which the energy 
audits indicate will reduce the use of nonrenewable sources of 
energy to the extent that the projected energy cost savings will 
amortize the cost of the conservation measures within a period 
of ten years or less;  
    (b) for capital expenditures for the purpose of reducing or 
eliminating barriers to or increasing access to school 
facilities by handicapped persons;  
    (c) for capital expenditures to bring district facilities 
into compliance with the uniform fire code adopted pursuant to 
chapter 299F;  
    (d) (a) for expenditures for the removal of asbestos from 
school buildings or property or for asbestos encapsulation, if 
the method for asbestos removal or encapsulation is approved by 
the department of education;  
    (e) (b) for expenditures for the cleanup of polychlorinated 
biphenyls, if the method for cleanup is approved by the 
department of education;  
    (f) (c) for capital expenditures for the betterment, as 
defined in section 475.51, subdivision 8, of district-owned 
school buildings, other than as provided in clauses (b), (c), 
and (d) clause (a); or 
    (g) (d) to replace the building or property sold.  
    The amount of the proceeds used for the purposes specified 
in clauses (a), and (b), (c), (d), and (e) shall be deducted 
from the levy limitation computed for the levy authorized in 
section 275.125, subdivisions 11b and subdivision 11c, as 
applicable, in the first year after the deposit and from levy 
limitations computed for this levy in succeeding years until the 
entire amount is deducted.  
    (3) In a district with outstanding bonds, the amount of the 
proceeds of the sale or exchange remaining after the application 
of clauses (1) and (2), which is sufficient to meet when due 
that percentage of the principal and interest payments for the 
district's outstanding bonds which is not governed by clause 
(1), shall be deposited in the debt retirement fund.  
     (4) Any proceeds of the sale or exchange remaining in 
districts with outstanding bonds after the application of 
clauses (1), (2), and (3), and all proceeds of the sale or 
exchange in districts without outstanding bonds shall be 
deposited in the capital expenditure fund of the district. 
    (5) Notwithstanding clauses (2) and (3), a district with 
outstanding bonds may deposit in its capital expenditure fund 
and use for any lawful capital expenditure without the reduction 
of any levy limitation the same percentage of the proceeds of 
the sale or exchange of a building or property as the percentage 
of the initial cost of purchasing or constructing the building 
or property which was paid using revenue from the capital 
expenditure fund.  
    (6) Every district which sells or exchanges a building or 
property shall report to the commissioner in the form and at the 
time the commissioner prescribes on the disposition of the 
proceeds of the sale or exchange. 
    Sec. 22.  [123.951] [SCHOOL SITE MANAGEMENT AGREEMENT.] 
    A school board may enter into an agreement with a school 
site management team concerning the governance, management, or 
control of a school.  An initial school site management team 
shall be appointed by the school board and shall include the 
school principal, representatives of teachers in the school, 
representatives of other employees in the school, 
representatives of parents of pupils in the school, 
representatives of pupils in the school, representatives of 
other members in the community, and others determined 
appropriate by the board.  The permanent school site management 
team shall consist of at least the school principal and 
representatives elected by each group represented on the initial 
team. 
    The school board may delegate any of its powers or duties 
to the school site management team.  Any powers or duties not 
specifically delegated shall remain with the school board. 
    Sec. 23.  Minnesota Statutes 1986, section 124.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  At the annual organizational meeting in 
independent districts and at the annual district meeting in 
common districts or at other times if necessary, The board 
district shall designate one or more national or state banks as 
official depositories for district money, and thereupon shall 
require the treasurer to deposit all or part of the district 
money in such bank or banks.  Such designation shall be in 
writing and set forth all the terms and conditions upon which 
the deposits are made; signed by the chair and clerk, and made a 
part of the minutes of the board.  Thereupon such bank or banks 
shall become legal depositories for district money in the manner 
specified in section 118.005, subdivision 1.  If the board shall 
refuse refuses or fail fails to designate one or more 
depositories in accordance with this subdivision, the treasurer 
shall deposit the funds of the district in accordance with the 
provisions of section 118.005, subdivision 2, and shall file a 
statement of the selection of the depository with the clerk of 
the district.  The treasurer shall not thereafter be liable for 
the loss of any funds through the insolvency or default of such 
depository in the absence of negligence on the treasurer's part 
in the selection of the depository. 
    Sec. 24.  Minnesota Statutes 1986, section 124.14, 
subdivision 7, is amended to read:  
    Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
appropriation to the commissioner department of education for 
any education aids aid or grant authorized in this chapter and 
chapters 121, 123, 124A, 125, 126, 129B, and 134 exceeds the 
amount required for payment of the corresponding aid 
entitlement, the commissioner of education may transfer the 
excess to any education aid or grant appropriation that is 
insufficient to meet the required payment, except that.  
However, section 124A.032 applies to a deficiency in the direct 
appropriation for foundation aid must be met by use of the 
appropriation in section 124A.032.  The commissioner shall 
determine the method for allocating Excess appropriations shall 
be allocated proportionately among aids or grants that have 
insufficient appropriations.  The commissioner of finance shall 
make the necessary transfers among appropriations according to 
the determinations of the commissioner of education.  The 
commissioner of education shall report appropriation transfers 
to the education committees of the legislature each year by 
January 15.  If the amount of the direct appropriation for the 
aid or grant plus the amount transferred according to this 
subdivision is insufficient, the commissioner shall prorate the 
available amount among eligible districts.  The state is not 
obligated for any additional amounts.  
    Sec. 25.  Minnesota Statutes 1986, section 124.195, 
subdivision 8, is amended to read:  
    Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] The 
following aids shall be paid at 100 percent of the entitlement 
for the prior fiscal year:  summer program aid according to 
section 124A.033; abatement aid according to section 124.214, 
subdivision 2; special education residential aid according to 
section 124.32, subdivision 5; special education summer school 
aid, according to section 124.32, subdivision 10; planning, 
evaluating, and reporting process aid according to 
section 123.7431 124.274; and extended leave and part-time 
teacher aids aid according to chapters 354 and 354A.  
    Sec. 26.  Minnesota Statutes 1986, section 124.273, 
subdivision 5, is amended to read:  
    Subd. 5.  [NOTIFICATION; AID PAYMENTS.] The department 
shall inform each applicant district of the amount of aid it 
will receive pursuant to this section within a month after the 
application deadline, and the department shall pay the aid 
within 15 days after notifying the district that it will receive 
aid.  Beginning with the 1982-1983 school year, 85 percent of 
the aid shall be paid within 15 days after the aid notification 
and the remaining aid to each district shall be paid on or 
before October 31 of the following school year.  
    Sec. 27.  Minnesota Statutes 1986, section 124A.031, 
subdivision 4, is amended to read:  
    Subd. 4.  [LOST REVENUE AID.] Each year, based on current 
year tax data reported in the abstracts of tax lists, the 
commissioner of revenue shall determine the distribution to each 
school district of the amount of revenue lost as a result of the 
reduction in property taxes provided in section 124.2137.  On or 
before July 15 of each year, the commissioner of revenue shall 
certify the amounts so determined to the department of 
education.  The department of education shall pay each school 
district its distribution as part of the foundation aid payment 
to each district in accordance with the payment dates 
in subdivision 1 section 124.195, as applicable. 
    Sec. 28.  Minnesota Statutes 1986, section 125.03, 
subdivision 5, is amended to read:  
    Subd. 5.  [TEACHERS; EXAMS.] "Teachers" for the purpose of 
examination means persons applying for initial teaching licenses 
or persons applying for additional fields of licensure to 
provide direct instruction to pupils in prekindergarten, 
elementary, secondary, and special education programs.  It does 
not mean persons applying for licenses as supervisory or support 
personnel nor does it mean librarians, school social workers, 
school psychologists, audio-visual directors or coordinators, or 
media generalists or supervisors.  
    Sec. 29.  Minnesota Statutes 1986, section 125.05, 
subdivision 1, is amended to read:  
    Subdivision 1.  [QUALIFICATIONS.] The authority to license 
teachers as defined in section 125.03, subdivision 1, is vested 
in the board of teaching except that the authority to license 
supervisory and support personnel as defined in section 125.03, 
subdivision 4, is vested in the state board of education. 
Licenses shall be issued to such persons as the board of 
teaching or the state board of education finds to be competent 
for their respective positions.  For teachers, as defined in 
section 125.03, subdivision 5, competency includes successful 
completion of an examination of academic knowledge in each field 
of licensure and, for persons applying for initial licenses, an 
examination of skills in reading, writing, and mathematics for 
persons applying for initial licenses.  Qualifications of 
teachers and other professional employees except supervisory and 
support personnel shall be determined by the board of teaching 
under the rules which it promulgates.  Licenses under the 
jurisdiction of the board of teaching shall be issued through 
the licensing section of the department of education.  Licenses 
under the jurisdiction of the state board of education shall be 
issued through the licensing section of the department of 
education.  
    Sec. 30.  Minnesota Statutes 1986, section 125.611, 
subdivision 11, is amended to read:  
    Subd. 11.  Notwithstanding the provisions of subdivisions 
subdivision 2, 3 and 7, a teacher who has entered into an 
agreement for termination of services and withdrawal from active 
teaching service with an early retirement incentive may be 
employed as a substitute teacher after retirement.  
    Sec. 31.  Minnesota Statutes 1986, section 125.611, 
subdivision 12, is amended to read:  
    Subd. 12.  Any amount of unemployment insurance which that 
the teacher receives and for which the district is required to 
pay into the unemployment compensation fund pursuant to section 
268.06, subdivision 25, at any time after the teacher has 
entered into an agreement pursuant to subdivision 7, may be 
deducted by the district from the amount of the teacher's early 
retirement incentive or recovered by the district from the 
teacher up to the amount of the early retirement incentive.  The 
district shall pay 50 percent of any amount so deducted or 
recovered to the department of education, and any amount so 
received by the department shall be deposited in the state 
treasury.  
    Sec. 32.  Minnesota Statutes 1986, section 125.611, 
subdivision 13, is amended to read:  
    Subd. 13.  [APPLICATIONS AFTER JUNE 30, 1984.] The state 
shall not reimburse the district for any portion of an early 
retirement incentive for any applications submitted after June 
30, 1984.  Beginning on July 1, 1984, A teacher meeting the 
requirements of subdivision 1 may apply to the school board of 
the employing district for a contract for termination of 
services, withdrawal from active teaching service, and payment 
of an early retirement incentive.  This application shall be 
submitted on or before February 1 of the school year at the end 
of which the teacher wishes to retire.  A school board shall 
approve or deny the application within 30 days after it is 
received by the board.  The amount of the early retirement 
incentive shall be agreed upon between the teacher and the 
school board.  The early retirement incentive shall be paid by 
the employing district at the time and in the manner mutually 
agreed upon by a teacher and the board.  
    Sec. 33.  Minnesota Statutes 1986, section 126.02, 
subdivision 2, is amended to read:  
    Subd. 2.  [TRAINING OF TEACHERS TEACHER EDUCATION 
PROGRAMS.] All colleges, schools, and other 
educational post-secondary institutions giving offering teacher 
training education programs shall provide courses in physical 
and health education, training, and instruction and.  Every 
pupil attending any college, school, or educational institution 
in preparation for teaching service student in a teacher 
education program shall take such health courses.  
    Sec. 34.  [126.201] [ADMINISTRATION OF MEDICATION BY SCHOOL 
PERSONNEL.] 
    A licensed school nurse or, in the absence of the nurse, a 
principal or teacher may administer medication prescribed for a 
pupil under the conditions set forth in this section.  
Administration of medication by school personnel must only be 
done according to the written order of a licensed physician and 
written authorization of a parent.  Medication to be 
administered must be brought to school in a container 
appropriately labeled by the pharmacy or physician.  Medications 
that are not taken orally or that have the potential of 
dangerous side effects may be administered only by a licensed 
school nurse. 
    Sec. 35.  Minnesota Statutes 1986, section 126.56, 
subdivision 3, is amended to read:  
    Subd. 3.  [FINANCIAL NEED.] Need for financial assistance 
shall be based on family income, family size, and special 
necessary expenditures of the family.  The higher education 
coordinating board shall determine review the financial need of 
each pupil based on to meet the actual charges made costs of 
attending the summer program, as determined by the institution 
sponsoring the summer program and.  The board shall award 
scholarships within the limits of the appropriation for this 
section.  If the amount appropriated is insufficient to make a 
full award to each applicant, the board shall allocate the 
amount appropriated in the manner it determines.  Scholarships A 
scholarship shall not be less than $100 or more than 
exceed $1,000. 
    Sec. 36.  Minnesota Statutes 1986, section 126.56, 
subdivision 6, is amended to read:  
    Subd. 6.  [INFORMATION.] The higher education coordinating 
board, in cooperation with the academic excellence foundation, 
shall assemble and distribute information about scholarships and 
eligible programs.  It may seek nonstate funds to perform its 
duties. 
    Sec. 37.  Minnesota Statutes 1986, section 129B.39, is 
amended to read:  
    129B.39 [PURCHASE OF COURSEWARE PACKAGE DUPLICATION 
RIGHTS.] 
    Rights to duplication of courseware packages may be 
purchased, and volume purchase agreements may be established by 
the department of education, if the department determines that 
the courseware packages qualify as high quality according to 
section 129B.37, and if the courseware packages are available to 
the state at a lower cost than if purchased by school districts 
individually.  The department shall contract with any company 
that submits the lowest bid and that has the capability to 
duplicate and distribute courseware packages obtained by the 
department under this section.  The materials shall be available 
to districts without at cost except for, including nominal costs 
of reproduction and distribution.  Money from the sale of 
courseware packages is annually appropriated to the department 
of education to purchase additional courseware packages 
according to this section. 
    Sec. 38.  Minnesota Statutes 1986, section 171.29, 
subdivision 2, is amended to read:  
    Subd. 2.  (a) A person whose drivers license has been 
revoked as provided in subdivision 1, except under section 
169.121 or 169.123, shall pay a $30 fee before the person's 
drivers license is reinstated. 
    (b) A person whose drivers license has been revoked as 
provided in subdivision 1 under section 169.121 or 169.123 shall 
pay a $150 fee before the person's drivers license is reinstated 
to be credited as follows: 
    (1) 50 percent shall be credited to the trunk highway fund; 
    (2) 25 percent shall be credited to a separate account to 
be known as the county probation reimbursement account.  Money 
in this account is appropriated to the commissioner of 
corrections for the costs that counties assume under Laws 1959, 
chapter 698, of providing probation and parole services to wards 
of the commissioner of corrections.  This money is provided in 
addition to any money which the counties currently receive under 
section 260.311, subdivision 5; and 
    (3) 25 percent shall be credited to a separate account to 
be known as the alcohol impaired driver education account.  
Money in the account is appropriated to the commissioner of 
education for grants to develop alcohol impaired driver 
education programs in elementary, secondary, and post-secondary 
schools.  The state board of education shall establish 
guidelines for the distribution of the grants.  The commissioner 
of education shall report to the legislature by January 15, 
1988, on the expenditure of grant funds under this clause.  Each 
year the commissioner may use $100,000 to administer the grant 
program and other traffic safety education programs.  
    Sec. 39.  Minnesota Statutes 1986, section 275.125, 
subdivision 9, is amended to read: 
    Subd. 9.  [LEVY REDUCTIONS; TACONITE.] (1) Reductions in 
levies pursuant to subdivision 10, and section 273.138, shall be 
made prior to the reductions in clause (2). 
    (2) Notwithstanding any other law to the contrary, 
districts which received payments pursuant to sections 294.21 to 
294.26; 298.23 to 298.28, except an amount distributed under 
section 298.28, subdivision 4, paragraph (c), clause (ii); 
298.34 to 298.39; 298.391 to 298.396; 298.405; 298.51 to 298.67; 
477A.15; and any law imposing a tax upon severed mineral values, 
or under any other law distributing proceeds in lieu of ad 
valorem tax assessments on copper or nickel properties, or 
recognized revenue pursuant to section 477A.15; shall not 
include a portion of these aids in their permissible levies 
pursuant to those sections, but instead shall reduce the 
permissible levies authorized by this section and sections 
124A.03, 124A.06, subdivision 3a, 124A.08, subdivision 3a, 
124A.10, subdivision 3a, 124A.12, subdivision 3a, 124A.14, 
subdivision 5a, and 124A.20, subdivision 2, by the greater of 
the following: 
    (a) an amount equal to 50 percent of the total dollar 
amount of the payments received pursuant to those sections or 
revenue recognized pursuant to section 477A.15 in the previous 
fiscal year; or 
     (b) an amount equal to the total dollar amount of the 
payments received pursuant to those sections or revenue 
recognized pursuant to section 477A.15 in the previous fiscal 
year less the product of the same dollar amount of payments or 
revenue times the ratio of the maximum levy allowed the district 
under sections 124A.03, subdivision 2, 124A.06, subdivision 3a, 
124A.08, subdivision 3a, 124A.10, subdivision 3a, 124A.12, 
subdivision 3a, and 124A.14, subdivision 5a, to the total levy 
allowed the district under this section and sections 124A.03, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
5a, and 124A.20, subdivision 2, in the year in which the levy is 
certified. 
    (3) No reduction pursuant to this subdivision shall reduce 
the levy made by the district pursuant to section 124A.03, 
subdivision 1, to an amount less than the amount raised by a 
levy of 12.5 mills times the adjusted assessed valuation of that 
district for the preceding year as determined by the 
equalization aid review committee.  The amount of any increased 
levy authorized by referendum pursuant to section 124A.03, 
subdivision 2 shall not be reduced pursuant to this 
subdivision.  The amount of any levy authorized by subdivision 
4, to make payments for bonds issued and for interest thereon, 
shall not be reduced pursuant to this subdivision.  
    (4) Before computing the reduction pursuant to this 
subdivision of the capital expenditure levy authorized by 
subdivision 11a, article 6, section 4, subdivision 2, and 
subdivisions 11c and 12a, and the community service levy 
authorized by subdivision subdivisions 8 and 8b, the 
commissioner shall ascertain from each affected school district 
the amount it proposes to levy for capital expenditures pursuant 
to subdivision 11a article 6, section 4, subdivision 2, and 
subdivisions 11c and 12a, and for community services pursuant to 
subdivision subdivisions 8 and 8b.  The reduction of the capital 
expenditure levy and the community services levy shall be 
computed on the basis of the amount so ascertained. 
    (5) Notwithstanding any law to the contrary, any amounts 
received by districts in any fiscal year pursuant to sections 
294.21 to 294.26; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 
298.396; 298.405; 298.51 to 298.67; or any law imposing a tax on 
severed mineral values, or under any other law distributing 
proceeds in lieu of ad valorem tax assessments on copper or 
nickel properties; and not deducted from foundation aid pursuant 
to section 124A.035, subdivision 5, clause (2), and not applied 
to reduce levies pursuant to this subdivision shall be paid by 
the district to the St. Louis county auditor in the following 
amount by March 15 of each year except 1986, the amount required 
to be subtracted from the previous fiscal year's foundation aid 
pursuant to section 124A.035, subdivision 5, which is in excess 
of the foundation aid earned for that fiscal year.  The county 
auditor shall deposit any amounts received pursuant to this 
clause in the St. Louis county treasury for purposes of paying 
the taconite homestead credit as provided in section 273.135. 
    Sec. 40.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [COUNCIL ON QUALITY EDUCATION.] For the council 
on quality education venture fund grants and dissemination 
according to Minnesota Statutes, sections 129B.01 to 129B.05, 
there is appropriated:  
    $ 63,900 ..... 1988. 
    The appropriation for aid for fiscal year 1988 is for aid 
for fiscal year 1987 payable in fiscal year 1988.  
    Subd. 3.  [EXTENDED LEAVES OF ABSENCE.] For the state's 
obligations according to Minnesota Statutes, sections 354.094 
and 354A.091, there is appropriated:  
    $196,900 ..... 1988. 
    Subd. 4.  [COMPREHENSIVE ARTS PLANNING PROGRAM.] For grants 
for the comprehensive arts planning program according to 
Minnesota Statutes, section 129B.20, there is appropriated:  
    $37,500 ..... 1988. 
    $37,500 ..... 1989.  
    Sec. 41.  [APPROPRIATIONS.] 
    Subdivision 1.  [HIGHER EDUCATION COORDINATING 
BOARD.] There is appropriated from the general fund to the 
higher education coordinating board the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [SUMMER PROGRAM SCHOLARSHIPS.] For scholarship 
awards for 1988 and 1989 summer programs according to Minnesota 
Statutes, section 126.56, there is appropriated:  
    $213,700 ..... 1988, 
    $213,700 ..... 1989.  
    Of this appropriation, the amount required may be used for 
the higher education coordinating board's costs of administering 
the program.  
    Sec. 42.  [REVISOR'S INSTRUCTION.] 
    In sections 121.904, 121.912, 121.914, 121.917, 122.531, 
123.71, 124.225, 124A.08, 136C.28, and 136C.69, the Revisor of 
Statutes shall change, in the next edition of Minnesota 
Statutes, the phrases in column A to the phrases in column B. 
          Column A                       Column B 
  Reserved Fund Balances 
  Appropriated for AVTI Equipment    Reserved for AVTI Equipment 
  Appropriated for AVTI Repair       Reserved for AVTI Repair  
  and Betterment                     and Betterment  
  Appropriated for Unemployment      Reserved for Unemployment 
  Insurance                          Insurance 
  Appropriated for Severance Pay     Reserved for Severance Pay
  Appropriated for Bus Purchases     Reserved for Bus Purchases
  Appropriated for Statutory         Reserved for Statutory 
  Operating Debt Reduction           Operating Debt Reduction 
  Appropriated for Maintenance       Reserved for Maintenance 
  Levy Reduction                     Levy Reduction 
  Appropriated for Current Use of    Reserved for Current Use of
  Taconite Payments                  Taconite Payments 
  Appropriated for Encumbrances      Reserved for Encumbrances  
    Unreserved Fund Balances 
  Appropriated for Building          Designated for Building 
  Construction                       Construction 
  Unappropriated Statutory           Undesignated Statutory 
  Operating Debt as of               Operating Debt as of 
  June 30, 1977                      June 30, 1977 
  Unappropriated from July 1,        Undesignated from July 1, 
  1977                               1977 
  Unappropriated                     Undesignated 
    Sec. 43.  [REPEALER.] 
    Minnesota Statutes 1986, sections 124.05, subdivision 2; 
124.185; 124A.031, subdivision 1; 125.611, subdivisions 8, 9, 
and 10; 354.66, subdivisions 4a and 9; 354A.094, subdivisions 4a 
and 9; and Laws 1985, First Special Session chapter 12, article 
8, section 46, are repealed. 
    Sec. 44.  [EFFECTIVE DATE.] 
    Sections 35 and 36 are effective the day following final 
enactment. 

                               ARTICLE 8 

                          ACCESS TO EXCELLENCE 
    Section 1.  Minnesota Statutes 1986, section 121.609, 
subdivision 4, is amended to read: 
    Subd. 4.  [REGIONAL SERVICES.] The department of education 
shall contract with educational cooperative service units or 
other regional educational service agencies to provide 
assistance to the school districts in an educational cooperative 
service unit region in implementing educational effectiveness.  
In selecting an agency to provide assistance to the school 
districts, the department shall consider such factors as support 
of the proposal by the participating school districts and the 
extent to which the proposal provides for participation by 
school district staff.  If more than one agency submits a 
proposal to provide services to school districts within an 
educational cooperative service unit region, the department 
shall encourage the agencies to develop a joint proposal.  Every 
two years, the department shall evaluate the performance of the 
regional service providers and shall consider new proposals to 
provide regional services. 
    Sec. 2.  [122.91] [EDUCATION DISTRICT ESTABLISHMENT.] 
    Subdivision 1.  [PURPOSE.] The purpose of an education 
district is to increase educational opportunities for pupils by 
increasing cooperation and coordination among school districts. 
    Subd. 2.  [AGREEMENT.] School boards meeting the 
requirements of subdivision 3 may enter into a written agreement 
to establish an education district.  The agreement and 
subsequent amendments must be adopted by majority vote of the 
full membership of each board.  
    Subd. 3.  [REQUIREMENTS FOR FORMATION.] An education 
district must have one of the following at the time of formation:
    (1) at least five districts; 
    (2) at least four districts with a total of at least 5,000 
pupils in average daily membership; or 
    (3) at least four districts with a total of at least 2,000 
square miles.  
    Subd. 4.  [NOTICE AND HEARING.] Before entering into an 
agreement, the school board of each member district shall 
publish at least once in a newspaper of general circulation in 
the district a summary of the proposed agreement and its effect 
upon the district.  The board shall conduct a public hearing on 
the proposed agreement not more than ten days after the notice 
and at least 30 days before entering into an agreement.  
    Subd. 5.  [JOINDER AND WITHDRAWAL.] A process for a 
district to join or withdraw from an education district shall be 
included in the education district agreement. 
    Subd. 6.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] If 
requested, educational cooperative service units shall provide 
assistance to districts in establishing education districts.  
The assistance may include determination of appropriate 
boundaries of the education district and development of the 
agreement.  The educational cooperative service units may 
provide any other services requested by the education district. 
    Sec. 3.  [122.92] [EDUCATION DISTRICT BOARD.] 
    The education district board shall be composed of at least 
one representative appointed by the school board of each member 
district.  The representative shall reside in the school 
district of the appointing school board.  The representative 
shall serve at the pleasure of the appointing school board and 
may be recalled by a majority vote of the appointing school 
board.  Each representative shall serve for the term that is 
specified in the agreement.  The board shall select its officers 
from among its members and shall determine the terms of the 
officers.  The board shall adopt by-laws for the conduct of its 
business.  
    Sec. 4.  [122.93] [POWERS AND DUTIES OF THE BOARD.] 
    Subdivision 1.  [COORDINATION.] An education district board 
shall coordinate the programs and services of the education 
district according to the terms of the written agreement.  The 
board shall implement the agreement for delivering educational 
services needed in the education district. 
    Subd. 2.  [PERSONNEL.] The board may employ personnel as 
necessary to provide and support the programs and services of 
the education district.  Education district staff shall 
participate in retirement programs.  
    Subd. 3.  [CONTRACTS.] The board may enter into contracts 
with school districts and other public and private agencies to 
provide services needed in the education district. 
    Subd. 4.  [GENERAL LAW.] The board shall be governed, 
unless specifically provided otherwise, by laws applicable to 
independent school districts. 
    Subd. 5.  [ADVISORY COUNCIL.] An advisory council, 
consisting of representatives from the program areas covered by 
the agreement, shall be appointed by the education district 
board. 
    Subd. 6.  [REPORT TO MEMBERS.] The board shall submit at 
least an annual report to the member districts and an annual 
report to the state board of education about the activities of 
the education district.  
    Sec. 5.  [122.94] [EDUCATION DISTRICT AGREEMENT.] 
    Subdivision 1.  [ESTABLISHMENT.] An education district 
board shall adopt a comprehensive agreement for continuous 
learning.  The agreement must address methods to improve the 
educational opportunities available in the education district.  
It must be submitted for review by all educational cooperative 
service units serving the education district.  The education 
district board shall review the agreement annually and propose 
necessary amendments to the member districts. 
    Subd. 2.  [MANDATORY PROVISIONS.] The agreement must 
provide for the following: 
    (1) coordination of member district and education district 
programs for handicapped pupils, gifted and talented pupils, 
secondary vocational education, improved learning, community 
education, early childhood family education, career education, 
and low incidence academic programs; 
    (2) research, planning, and development functions, 
including acquiring and disseminating research information and 
developing methods to implement research, such as educational 
effectiveness programs and improving education based on 
educational research; and 
    (3) methods to meet pupil needs for health services, 
library services, and counseling services.  
    Subd. 3.  [OPTIONAL PROVISIONS.] The agreement may contain 
the following: 
    (1) methods for sharing administrative and management 
services; 
    (2) professional development programs; 
    (3) programs that use learning time available during the 
summer; 
    (4) use of technology for education programs and management 
assistance; or 
     (5) methods for involving parents in planning education 
programs. 
    Subd. 4.  [EXTENDED YEAR.] The agreement may provide 
opportunities for pupils to receive instruction throughout the 
entire year and for teachers to coordinate educational 
opportunities and provide instruction throughout the entire 
year.  Pupils may receive instruction for more than or less than 
the daily number of hours required by the rules of the state 
board of education.  However, the pupil must receive instruction 
each year for at least the total number of instructional hours 
required by statutes and rules.  A teacher who is employed for 
the extended year may develop, in consultation with pupils and 
parents, individual educational programs for not more than 125 
pupils.  
    Subd. 5.  [ATTENDANCE IN OTHER DISTRICTS.] The agreement 
may provide for a pupil who is a resident of a member district 
to enroll in programs or courses offered by another member 
district or transfer to another member district.  A pupil and 
parent shall consult with a career teacher, counselor, or 
principal before transferring to another district.  The 
agreement shall specify procedures for reimbursement among the 
member districts.  The district of residence shall count all 
resident pupils who enroll in programs or courses or transfer to 
another district as its pupils for the purpose of state aid and 
levy limitations.  The agreement shall determine whether 
transportation is available for pupils enrolled in programs or 
courses or transferring to another district. 
    Sec. 6.  [122.95] [TEACHING POSITIONS.] 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, "teacher" has the meaning given it in section 125.12, 
subdivision 1, except that it does not include a superintendent. 
    Subd. 2.  [FILLING POSITIONS.] (a) When an education 
district board or a member board is filling a position resulting 
from implementation of the agreement, the board may offer the 
position to a teacher currently employed by a member district 
according to the exchange teacher provisions of section 125.13. 
    (b) If the position is not filled by a currently employed 
teacher, the board shall offer the position to an available 
teacher in the order of seniority in fields of licensure on a 
combined seniority list of all available teachers in the member 
districts.  An available teacher is a teacher in a member 
district who:  
    (1) was placed on unrequested leave of absence by a member 
district, according to section 125.12, subdivision 6a or 6b, or 
was terminated according to section 125.17, subdivision 11, not 
more than one year before the initial formation of an education 
district as a result of an intention to enter into an education 
district agreement; 
    (2) was placed on unrequested leave of absence by a member 
district, according to section 125.12, subdivision 6a or 6b, or 
was terminated according to section 125.17, subdivision 11, as a 
result of implementing the education district agreement, after 
the formation of the education district; or 
    (3) is placed on unrequested leave of absence by a member 
district, according to section 125.12, subdivision 6a or 6b, or 
is terminated according to section 125.17, subdivision 11, as a 
result of implementing the education district, in the same year 
the position is filled. 
    (c) If no currently employed teacher or available teacher 
accepts the position, the board may fill the position with any 
other teacher.  
    (d) Any teacher who has been placed on unrequested leave of 
absence or who has been terminated has a right to a position 
only as long as the teacher has a right to reinstatement in a 
member district under section 125.12, subdivision 6a or 6b, or 
125.17, subdivision 11.  
    Subd. 3.  [PROBATION AND TERMINATION.] Notwithstanding 
section 125.12, subdivision 3, a teacher who has acquired 
continuing contract rights in a member district and who 
transfers employment from a member district to the education 
district or to another member district does not have to serve a 
probationary period.  A teacher who is terminated or discharged 
by a member district according to section 125.12, subdivision 6 
or 8, or 125.17, subdivision 4, has no right to any position 
under this section.  
    Subd. 4.  [DETERMINATION OF REASON FOR LEAVE.] When a 
school board that intends to enter into an education district 
agreement, and at the time a school board that has entered into 
an education district agreement places a teacher on unrequested 
leave of absence, according to section 125.12, subdivision 6a or 
6b, or terminates a teacher's services under section 125.17, 
subdivision 11, the board shall make a determination whether the 
placement or termination is a result of implementing the 
education district agreement.  That determination shall be 
included in the notice of proposed placement or termination, may 
be reviewed at a hearing upon request of the teacher, and shall 
be included in the notice of final action of the board.  If the 
determination is not disputed by the teacher before June 1 or 
the final date required for action by the board, the teacher 
shall be deemed to acquiesce in the board's determination.  
    Sec. 7.  [122.96] [BONDS FOR EDUCATION DISTRICTS.] 
    Subdivision 1.  [PURPOSE OF BONDS.] The education district 
board, acting on its own behalf, may issue bonds for the 
acquisition of secondary school facilities or for funding or 
refunding related outstanding bonds, warrants, orders, or 
certificates of indebtedness.  The board shall comply with the 
provisions of chapter 475. 
    Subd. 2.  [APPROVAL RESOLUTION.] The purpose and the amount 
of any borrowing shall first be approved by resolution of the 
board of the education district.  When the resolution has been 
adopted by the board it shall be published once in a newspaper 
of general circulation in the education district. 
    Subd. 3.  [ELECTION.] The education district board shall 
not sell and issue bonds for acquisition purposes until the 
question of their issuance has been submitted to the voters of 
the education district at a special election held in and for the 
education district.  The date of the election, the question to 
be submitted, and all other necessary conduct of the election 
shall be fixed by the board.  The election shall be conducted 
and canvassed under the direction of the education district 
board in accordance with section 123.32, insofar as may be 
applicable. 
    If a majority of the total number of votes cast on the 
question within the education district is in favor of the 
question, the board may proceed with the sale and the issuance 
of the bonds. 
     Subd. 4.  [OBLIGATION FOR PAYMENT.] The full faith, credit, 
and unlimited taxing powers of the education district shall be 
pledged to the payment of all bonds and certificates of 
indebtedness.  None of the obligations shall be included in the 
net debt, as defined by section 475.51, subdivision 4, of any 
member school district. 
     Subd. 5.  [TAX LEVIES.] The education district board, upon 
awarding a contract for the sale of the bonds, shall certify to 
the county auditor or county auditors the years and amounts of 
taxes required to be levied for the payment of the bonds as 
provided by section 475.61.  The county auditor shall cause the 
taxes to be spread in each year until bonds and interest have 
been paid upon all of the assessable, taxable valuation of the 
education district. 
     Subd. 6.  [TAX-EXEMPT SECURITIES.] The bonds are authorized 
securities within the provisions of section 50.14, and shall be 
deemed instruments of a public governmental agency. 
    Sec. 8.  Minnesota Statutes 1986, section 123.34, 
subdivision 9, is amended to read:  
    Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
classified secondary school shall employ a superintendent who 
shall be an ex officio nonvoting member of the school board.  
The authority for selection and employment of a superintendent 
shall be vested in the school board in all cases.  
Notwithstanding the provisions of sections 122.532, 122.541, 
125.12, subdivision 6a or 6b, or any other law to the contrary, 
no individual shall have a right to employment as a 
superintendent based on seniority or order of employment in any 
district.  If two or more school districts enter into an 
agreement for the purchase or sharing of the services of a 
superintendent, the contracting districts have the absolute 
right to select one of the individuals employed to serve as 
superintendent in one of the contracting districts and no 
individual has a right to employment as the superintendent to 
provide all or part of the services based on seniority or order 
of employment in a contracting district.  An individual who 
holds a position as superintendent in one of the contracting 
districts, but is not selected to perform the services, may be 
placed on unrequested leave of absence or may be reassigned to 
another available position in the district for which the 
individual is licensed.  The superintendent of a district shall 
perform the following:  
    (a) visit and supervise the schools in the district, report 
and make recommendations about their condition when advisable or 
on request by the board;  
    (b) recommend to the board employment and dismissal of 
teachers;  
    (c) superintend school grading practices and examinations 
for promotions;  
    (d) make reports required by the commissioner of education; 
and 
    (e) perform other duties prescribed by the board.  
    Sec. 9.  [123.3515] [SCHOOL DISTRICT ENROLLMENT OPTIONS 
PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] An enrollment options 
program for school districts, in which a school district may 
voluntarily participate, is established.  A participating 
district must include all grade levels offered by the district.  
By formal resolution, a participating district must agree to: 
     (1) allow its resident pupils to enroll in other 
participating districts; 
    (2) accept nonresident pupils from other participating 
districts; and 
    (3) follow the procedures in this section.  
     A district shall notify the commissioner each year by 
September 15 whether it will participate in the program during 
the following school year.  For the 1987-1988 school year, a 
district must notify the commissioner by July 1, 1987.  
    Subd. 2.  [PUPIL APPLICATION.] A pupil who resides in a 
participating district may enroll according to this section in a 
participating nonresident district.  The pupil's parent or 
guardian must apply to the nonresident district on a form 
provided by the department of education.  The application must 
be submitted to the nonresident district by December 1 for 
enrollment during the following school year.  For the 1987-1988 
school year, an application must be submitted by August 1, 1987. 
    Subd. 3.  [NONRESIDENT DISTRICT PROCEDURES.] Within ten 
days of receiving an application, a nonresident district shall 
notify the resident district that it has received the 
application.  The nonresident district shall notify the parent 
or guardian and the resident district by February 1 whether the 
pupil's application has been approved or disapproved.  For the 
1987-1988 school year, notification must occur by August 10, 
1987.  
    Subd. 4.  [BASIS FOR APPROVAL.] A nonresident district must 
adopt criteria for approving and disapproving applications.  A 
nonresident district may disapprove an application because of 
lack of space in the district.  It may also disapprove an 
application for a particular program or school because of lack 
of space in the program or school.  A district that has a 
desegregation plan may approve and disapprove applications 
according to subdivision 5.  
    Subd. 5.  [RACIAL BALANCE.] A school district that has a 
desegregation plan may limit the number of pupils who transfer 
into or out of the district.  An application to transfer into or 
out of a desegregation district shall be submitted to that 
district by November 1 of each year for enrollment during the 
following school year.  For the 1987-1988 school year, an 
application must be submitted by August 1, 1987.  If approval of 
all of the applications would result in the district being out 
of compliance with its desegregation plan, the district shall 
establish the number of majority and minority group pupils who 
may transfer into or out of the district.  The district may 
approve or disapprove the applications in a manner that will 
enable compliance with the desegregation plan.  The district 
shall notify the parent or guardian by November 20 whether the 
pupil's application has been approved or disapproved.  For the 
1987-1988 school year, notification must occur by August 10, 
1987. 
    Subd. 6.  [TRANSPORTATION.] The nonresident district shall 
provide transportation within that district for nonresident 
pupils enrolled under this section.  The state shall pay 
transportation aid to the district according to section 124.225. 
The resident district is not required to provide or pay for 
transportation between a pupil's residence and the border of the 
nonresident district.  
    A parent or guardian may apply to the nonresident district 
for reimbursement for transportation costs between the pupil's 
residence and the border of the nonresident district.  The state 
board shall establish guidelines for reimbursing the 
transportation costs based on financial need.  Chapter 14 does 
not apply to the guidelines.  
    Subd. 7.  [CREDITS; GRADUATION.] A pupil who has been 
enrolled in a nonresident district and who has met the 
district's graduation requirements shall be granted a diploma by 
that district.  The district shall accept credits toward 
graduation requirements that were awarded by another district. 
    Subd. 8.  [INFORMATION.] A participating district must make 
information about the district, schools, programs, policies, and 
procedures available to all interested people.  
    Subd. 9.  [AID.] Payment of foundation aid or general 
education aid for pupils enrolled in a nonresident district must 
be made according to section 10. 
    Sec. 10.  Minnesota Statutes 1986, section 124A.036, is 
amended by adding a subdivision to read: 
    Subd. 5.  [CERTAIN NONRESIDENTS.] The foundation aid for 
districts must be adjusted for each pupil attending a 
nonresident district under sections 9 and 34.  The adjustments 
must be made according to this subdivision. 
    (a) Foundation aid paid to a resident district must be 
reduced by an amount equal to the formula allowance plus the 
total tier revenue per actual pupil unit of the resident 
district times the number of pupil units of pupils enrolled in a 
nonresident district. 
    (b) Foundation aid paid to a nonresident district shall be 
increased by an amount equal to the formula allowance plus the 
total tier revenue per actual pupil unit of the nonresident 
district times the number of pupil units of nonresident pupils 
enrolled in that nonresident district.  
    (c) If the amount of the reduction to be made from the 
foundation aid of the resident district is greater than the 
amount of foundation aid otherwise due the district, the excess 
reduction must be made from other state aids due the district. 
    Sec. 11.  Minnesota Statutes 1986, section 125.185, 
subdivision 4, is amended to read: 
    Subd. 4.  The board shall adopt rules to license public 
school teachers and interns subject to chapter 14.  The board 
shall adopt rules for examination of teachers, as defined in 
section 125.03, subdivision 5.  The rules may allow for 
completion of the examination of skills in reading, writing, and 
mathematics before entering or during a teacher education 
program.  The board shall adopt rules to approve teacher 
education programs.  The board of teaching shall provide the 
leadership and shall adopt rules by October 1, 1988 for the 
redesign of teacher education programs to implement a research 
based, results-oriented curriculum that focuses on the skills 
teachers need in order to be effective.  The board shall 
implement new systems of teaching education program evaluation 
to assure program effectiveness based on proficiency of 
graduates in demonstrating attainment of program outcomes. 
    These rules shall encourage teacher educators to obtain 
periodic classroom elementary or secondary teaching experience.  
The board shall also grant licenses to interns and to candidates 
for initial licenses and.  The board shall design and implement 
an assessment system which requires candidates for initial 
licensure and first continuing licensure to demonstrate the 
abilities necessary to perform selected, representative teaching 
tasks at appropriate levels.  The board shall receive 
recommendations from local committees as established by the 
board for the renewal of teaching licenses,.  The board shall 
grant life licenses to those who qualify according to 
requirements established by the board, and suspend or revoke 
licenses pursuant to sections 125.09 and 214.10.  
Notwithstanding any law or rule to the contrary, the board shall 
not establish any expiration date for application for life 
licenses.  With regard to vocational education teachers the 
board of teaching shall adopt and maintain as its rules the 
rules of the state board of education and the state board of 
vocational technical education. 
    Sec. 12.  [125.211] [RESEARCH ON PROGRAM EFFECTIVENESS.] 
    Subdivision 1.  [PURPOSE.] The legislature recognizes a 
growing and substantial concern about the effectiveness and 
breadth of the existing undergraduate curriculum for teacher 
education students.  It also recognizes the absence of 
definitive research about the most effective curricula to 
adequately prepare teachers for entrance into the teaching 
profession.  The purpose of this section is to support research 
on the comparative effectiveness of different teacher education 
program structures, after new programs have been designed and 
implemented, and the first graduates are in service. 
    Subd. 2.  [RESPONSIBILITY.] By July 1, 1989, the board of 
teaching shall begin to evaluate the effectiveness of 
pre-baccalaureate, post-baccalaureate, and other alternative 
program structures for preparing candidates for entrance into 
the teaching profession.  The evaluation shall be conducted by 
independent research centers or evaluators who are not 
associated with a Minnesota teacher education institution and 
shall be longitudinal in nature.  By July 1, 1990, the board of 
teaching shall make a preliminary report on the effectiveness of 
alternative program structures to the education and finance 
committees of the legislature. 
    Sec. 13.  [125.231] [TEACHER ASSISTANCE THROUGH MENTORSHIP 
PROGRAM.] 
    Subdivision 1.  [TEACHER MENTORING PROGRAM.] School 
districts are encouraged to participate in a competitive grant 
program that explores the potential of various teacher mentoring 
programs.  
    Subd. 2.  [TEACHER MENTORING TASK FORCE.] The commissioner 
shall appoint a teacher mentoring task force including 
representatives of the two teachers unions, the two principals 
organizations, school boards association, administrators 
association, board of teaching, parent teacher association, 
post-secondary institutions, foundations, and the private sector.
Representation on the task force by minority populations shall 
reflect the proportion of minorities in the public schools. 
    The task force shall: 
    (1)  make recommendations for a system of incentives at the 
state and local level to assure that highly capable individuals 
are attracted to and retained in the teaching profession;  
    (2) determine ways in which teachers can be empowered 
through expanding to new and more professional roles; and 
    (3) develop the application forms, criteria, and procedures 
for the mentorship program.  
    Subd. 3.  [APPLICATIONS.] The commissioner of education 
shall make application forms available by October 1, 1987.  By 
December 1, 1987, a school district, a group of school 
districts, or a coalition of districts, teachers and teacher 
education institutions may apply for a teacher mentorship 
program grant.  By January 1, 1988, the commissioner, in 
consultation with the teacher mentoring task force, shall 
approve or disapprove the applications.  To the extent possible, 
the approved applications must reflect a variety of mentorship 
program models, include a variety of coalitions and be 
geographically distributed throughout the state.  The 
commissioner of education shall encourage the selected sites to 
consider the use of the assessment procedures developed by the 
board of teaching.  
    Subd. 4.  [CRITERIA FOR SELECTION.] At a minimum, 
applicants must express commitment to: 
    (1) allow staff participation; 
    (2) assess skills of both beginning and mentor teachers; 
    (3) provide appropriate in-service to needs identified in 
the assessment; 
    (4) provide leadership to the effort; 
    (5) cooperate with higher education institutions; 
    (6) provide facilities and other resources; and 
    (7) share findings, materials, and techniques with other 
school districts. 
    Subd. 5.  [ADDITIONAL FUNDING.] Applicants are required to 
seek additional funding and assistance from sources such as 
school districts, post-secondary institutions, foundations, and 
the private sector. 
    Subd. 6.  [REPORT TO THE LEGISLATURE.] By January 1, 1988, 
the commissioner of education shall report to the legislature on 
the teacher mentoring task force recommendations for a system of 
incentives at the state and local level to assure that highly 
capable individuals are attracted to and retained in the 
teaching profession.  
    By January 1 of 1989 and 1990, the commissioner of 
education shall report to the legislature on the design, 
development, implementation, and evaluation of the mentorship 
program.  
    Sec. 14.  [125.241] [ADMINISTRATORS ACADEMY.] 
    Subdivision 1.  [SERVICES.] An administrators academy is 
established.  The academy shall provide at least the following 
services: 
    (1) an administrator assessment that results in an 
individual professional development plan; 
    (2) research and development assistance that provides 
current research and data of interest to administrators; and 
    (3) brokerage assistance to provide services and resources 
to help administrators with needs identified in their individual 
professional development plan. 
    Subd. 2.  [GOVERNANCE.] The commissioner of education shall 
appoint a 17-member committee to govern the administrators 
academy.  Eight members must be from among administrators who 
are receiving or have received the services of the academy.  In 
addition, a representative of each of the following 
organizations:  Minnesota department of education, Minnesota 
association of school administrators, Minnesota elementary 
school principals, Minnesota secondary school principals, 
University of Minnesota, state university system, and a 
representative from the private colleges must be appointed by 
the organization each represents.  Parents and teachers shall 
also have representation on the governing board.  
    Subd. 3.  [REPORT TO THE LEGISLATURE.] The department of 
education shall report to the legislature by January 1, 1989, on 
the services provided by the administrators academy. 
    Sec. 15.  [126.22] [HIGH SCHOOL GRADUATION INCENTIVES 
PROGRAM.] 
    Subdivision 1.  [PURPOSE.] The legislature finds that it is 
critical for persons to obtain at least a high school education 
to function in today's society.  Therefore, the purpose of this 
section is to provide incentives for and encourage all Minnesota 
students who have experienced or are experiencing difficulty in 
the traditional education system to enroll in alternative 
programs in order to complete their high school education. 
    Subd. 2.  [ELIGIBLE STUDENTS.] The following students are 
eligible to participate in the high school graduation incentives 
program: 
    (a) any student who is between the ages of 12 and 16 and 
who: 
    (1) is at least two grade levels below the performance 
level for students of the same age in a locally determined 
achievement test; or 
    (2) is at least one year behind in obtaining credits for 
graduation; or 
    (3) is pregnant or is a parent; or 
    (4) has been assessed as chemically dependent; or 
    (5) has been absent from attendance at school without 
lawful excuse for one or more class periods on more than 15 days 
in the preceding or current school year. 
    (b) any student who is between the ages of 16 and 19 who is 
attending school, and who is at least two grade levels below the 
performance level for students of the same age in a locally 
determined achievement test, or is at least one year behind in 
obtaining credits for graduation, or is pregnant or is a parent, 
or has been assessed as chemically dependent; or 
    (c) any person between 16 and 21 years of age who has not 
attended a high school program for at least 15 days, excluding 
those days when school is not in session, and who is at least 
two grade levels below the performance level for students of the 
same age in a locally determined achievement test, or is at 
least one year behind in obtaining credits for graduation, or 
has been assessed as chemically dependent; 
    Subd. 3.  [ELIGIBLE PROGRAMS.] Students who are eligible to 
participate under subdivision 2 may enroll in the following 
programs: 
    (a) Any program approved by the state board of education 
under Minnesota Rules, part 3500.3500 or according to section 
121.11, subdivision 12, may enroll students who are eligible to 
participate under subdivision 2, clause (a), (b) or (c) of this 
section; 
    (b) Students eligible to participate under subdivision 2, 
clause (b) or (c) of this section may enroll in post-secondary 
courses under section 123.3514; and 
    (c) Any public secondary education program may enroll any 
student who is eligible to participate under subdivision 2, 
clause (a), (b) or (c). 
    Subd. 4.  [STUDENT ENROLLMENT.] Any eligible student under 
subdivision 2 may apply to enroll in an eligible program under 
subdivision 3, using the form specified in section 120.0752, 
subdivision 2.  Notwithstanding section 120.0752, approval of 
the resident district is not required for an eligible student 
under subdivision 2 to enroll in a nonresident district which 
has an eligible program under subdivision 3 or an area learning 
center established under section 34.  A student enrolling in a 
program in a nonresident district under this section shall be 
considered a resident of that district. 
    Subd. 5.  [DISSEMINATION OF INFORMATION.] A school district 
shall disseminate information, developed by the department of 
education, about the high school graduation incentives program 
to residents in the district who are under the age of 21. 
    Subd. 6.  [DESEGREGATION PLANS.] Notwithstanding any 
provision to the contrary, students may not enroll in a 
nonresident district under this section if their enrollment in 
another school district would result in a violation of a 
district's desegregation plan, as mandated and approved by the 
state board of education. 
    Sec. 16.  [126.23] [AID FOR PRIVATE ALTERNATIVE PROGRAMS.] 
    If a pupil enrolls in a nonsectarian alternative program 
operated by a private organization that has contracted with a 
school district to provide educational services for high school 
drop outs or other eligible students under section 15, 
subdivision 2, the resident district must reimburse the provider 
an amount equal to at least 50 percent of the formula allowance 
plus the total tier revenue attributable to that pupil. 
    Sec. 17.  [126.24] [CAREER OPTIONS AND DROP-OUT PREVENTION 
INFORMATION.] 
    Subdivision 1.  [SALE OF MATERIALS.] The department of 
education may provide career options and drop-out prevention 
materials and services developed by the secondary vocational 
education section to school districts and educational agencies 
in Minnesota and other states.  The department may collect 
reasonable fees for the materials and services. 
    Subd. 2.  [APPROPRIATION.] There is annually appropriated 
from the general fund to the department of education any and all 
amounts received by the department under subdivision 1.  Any 
amount received under this section must be used exclusively for 
the purpose of developing and distributing materials and 
services relating to career options and drop-out prevention 
programs. 
    Sec. 18.  [126.661] [PER DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] For the purposes of 
sections 9 to 14 and section 126.67 the following terms have the 
meanings given them.  
    Subd. 2.  [CURRICULUM.] "Curriculum" means written plans 
for providing learning experiences that lead to the acquisition 
of knowledge, skills, and attitudes.  
    Subd. 3.  [LEARNER OUTCOME.] "Learner outcome" means a 
specific educational goal of the curriculum.  
    Subd. 4.  [INSTRUCTION.] "Instruction" means methods of 
providing learning experiences that facilitate pupil progress in 
attaining outcomes.  
    Subd. 5.  [ESSENTIAL LEARNER OUTCOMES.] "Essential learner 
outcomes" means the specific basic learning experiences that 
must be provided for all students.  
    Subd. 6.  [PER PROCESS.] "Planning, evaluating, and 
reporting process" or "PER process" means a process, described 
in sections 18 to 23 and 126.67, to establish a cycle for 
curriculum identification, implementation, review, and 
improvement that is reported to the community and the state.  
    Sec. 19.  [126.662] [PER FINDINGS.] 
    The legislature finds that a process is needed to 
facilitate decisions by school boards and communities concerning 
education curriculum planning, evaluation of curriculum, 
evaluation for improvement of instruction, and determination of 
the services that can or should be provided by institutions, 
such as the family, private or public organizations and 
agencies, in addition to being provided by public education.  
    Sec. 20.  [126.663] [PER CURRICULUM ACCOUNTABILITY AND 
IMPROVEMENT PROCESS.] 
    Subdivision 1.  [STATE PROCESS.] The state board, with the 
advice of the state curriculum advisory committee, shall adopt a 
state PER process and standard procedures for district planning, 
evaluating, and reporting.  
    Subd. 2.  [MODEL STATE CORE CURRICULUM.] The state board 
shall adopt a set of learner outcomes that it considers to be 
essential for each subject area.  The department of education, 
in cooperation with the state curriculum advisory committee, 
shall develop a validated research-based process to identify a 
set of learner outcomes that are essential for each subject area.
    Subd. 3.  [MODEL LEARNER OUTCOMES.] The department shall 
develop and maintain sets of learner outcomes in state board 
identified subject areas that it considers to be model learner 
outcomes.  The department shall make the sets available for use 
by a district at the option of the district.  The sets shall be 
for pupils in kindergarten to grade 12.  The department shall 
consult with each of the public post-secondary systems and with 
the higher education coordinating board in developing model 
learner outcomes appropriate for entry into post-secondary 
institutions.  
    Sec. 21.  [126.664] [TECHNICAL ASSISTANCE.] 
    The commissioner of education shall make technical 
assistance for planning and evaluation available to school 
districts.  The department shall collect the annual reports from 
districts, as provided in section 14, subdivision 4, and shall 
make these reports available, upon request, to any person.  If 
requested, the department shall provide technical assistance to 
a district developing methods for measuring group or individual 
pupil progress.  
    Sec. 22.  [126.665] [STATE CURRICULUM ADVISORY COMMITTEE.] 
    The commissioner shall appoint a state curriculum advisory 
committee of 11 members to advise the state board and the 
department on the PER process.  Nine members shall be from each 
of the educational cooperative service units and two members 
shall be at-large.  The committee shall include representatives 
from the state board of education, parents, teachers, 
administrators, and school board members.  Each member shall be 
a present or past member of a district curriculum advisory 
committee.  The state committee shall provide information and 
recommendations about at least the following:  
    (1) department procedures for reviewing and approving 
reports and disseminating information; 
    (2) exemplary PER processes; 
    (3) recommendations for improving the PER process and 
reports; and 
    (4) developing a continuous process for identifying and 
attaining essential learner outcomes.  
    By February 1 of each year, the commissioner, in 
cooperation with the state curriculum advisory committee, shall 
prepare a report for the education committees of the 
legislature.  The report shall include the recommendations of 
the state curriculum advisory committee.  
    Sec. 23.  [126.666] [SCHOOL DISTRICT PROCESS.] 
    Subdivision 1.  [ADOPTING POLICIES.] A school board shall 
adopt each year a written PER policy that includes the following:
    (1) district curriculum goals; 
    (2) learner outcomes for each subject area at each grade 
level that include the essential learner outcomes adopted by the 
state board under section 11, subdivision 2; 
    (3) a process for evaluating each student's progress toward 
attaining learner outcomes and for identifying strengths and 
weaknesses of the curriculum; 
    (4) a system for establishing a review cycle for all 
curriculum; 
    (5) curriculum and instruction improvement plans; and 
    (6) an instruction plan that includes education 
effectiveness processes developed according to section 121.608 
and integration of curriculum and technology developed under 
section 129B.33. 
    Subd. 2.  [CURRICULUM ADVISORY COMMITTEE.] Each school 
board shall establish a curriculum advisory committee to permit 
active community participation in all phases of the PER process. 
The advisory committee shall be representative of the community 
served by the district and include principals, teachers, 
parents, support staff, and other community residents.  Whenever 
possible, parents and other community residents shall comprise 
at least two-thirds of the advisory committee.  The committee 
shall make recommendations to the board about the programs 
enumerated in article 1, section 16, that the committee 
determines should be offered.  The recommendations shall be 
based on district needs and priorities. 
    Subd. 3.  [BUILDING TEAM.] A team may be established at 
each school building to develop and implement an education 
effectiveness plan to improve curriculum and instruction.  The 
team shall advise the board and the advisory committee about the 
development of an instruction improvement plan that aligns 
curriculum, assessment of student progress, and instruction.  
    Subd. 4.  [REPORT.] By October 1 of each year, the school 
board shall adopt, using state board standard reporting 
procedures, a report that includes the following:  
    (1) learner outcomes adopted for that year; 
    (2) results of local assessment data, and any additional 
test data; 
    (3) the annual school district improvement plans; and 
    (4) information about progress that has been made toward 
the improvement plans that were previously adopted by the board. 
    The school board shall publish the report in the local 
newspaper with the largest circulation in the district or by 
mail.  The report shall be available for inspection by the 
public.  A copy of the report shall be sent to the commissioner 
of education by October 15 of each year.  
    Subd. 5.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
least once every two years the report shall include an 
evaluation of the district testing programs, according to the 
following:  
    (1) written objectives of the assessment program; 
    (2) names of tests and grade levels tested; 
    (3) use of test results; and 
    (4) implementation of assurance of mastery program.  
    Sec. 24.  Minnesota Statutes 1986, section 126.67, is 
amended by adding a subdivision to read: 
    Subd. 2b.  [DISTRICT ASSESSMENTS.] As part of the PER 
process, each year a district shall, in at least three grades, 
conduct assessments among at least a sample of pupils for each 
subject area in that year of the curriculum review cycle.  The 
district's curriculum review cycle for communication, 
mathematics, science, and social studies shall be more than five 
years.  Assessments may not be conducted in the same curriculum 
area for two consecutive years.  The district may use tests from 
the assessment item bank, the local assessment program developed 
by the department, or other tests.  As they become available, 
districts shall use state developed measures to assure state 
progress toward the state core curriculum.  Funds are provided 
for districts that choose to use the local assessment program or 
the assessment item bank. 
    Sec. 25.  Minnesota Statutes 1986, section 126.67, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [ASSURANCE OF MASTERY.] Each school board shall 
adopt a policy establishing a process to assure individual pupil 
mastery in communications and mathematics.  This process shall 
include at least the following: 
    (1) procedures, which may include multiple or separate 
criteria, for the evaluation and identification of nonspecial 
education pupils and pupils with limited English proficiency who 
are not making sufficient progress in the mastery of 
communications and mathematics; 
    (2) procedures for implementation in grades kindergarten to 
12, beginning in the 1986-1987 school year, and requiring 
evaluation of progress toward mastery at least once during 
grades K to 3, once during grades 4 to 6, once during grades 7 
to 9, and once during grades 10 to 12; 
    (3) procedures for parent conferences to establish an 
individualized remediation or modified instruction plan for each 
pupil who is not making sufficient progress toward mastery of 
communication or mathematic skills; and 
    (4) procedures which shall consider and address the special 
needs of handicapped pupils and pupils with limited English 
proficiency. 
    Sec. 26.  Minnesota Statutes 1986, section 126.67, 
subdivision 6, is amended to read:  
    Subd. 6.  [ADDITIONAL TESTING.] The department upon written 
agreement with local school districts may perform additional 
testing and evaluation of students.  The department may collect 
a reasonable fee not to exceed the actual cost of services.  The 
department may also sell products and services as a part of the 
assessment item bank program to public and private entities 
outside of the state.  Money from the sale of these products and 
services is annually appropriated to the department for the 
improvement of assessment measures within Minnesota. 
    Sec. 27.  Minnesota Statutes 1986, section 126.70, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEVELOPMENT OF PLAN ELIGIBILITY FOR 
REVENUE.] Each school district is encouraged to develop and 
adopt a written comprehensive plan for excellence in teaching 
and curriculum.  The plan shall be prepared in consultation with 
the curriculum advisory committee appointed according to section 
126.66, subdivision 3 A school board may use the revenue 
authorized in article 1, section 18, if it establishes a staff 
development advisory committee and adopts a staff development 
plan according to this subdivision.  A majority of the advisory 
committee must be teachers representing various grade levels and 
subject areas.  The advisory committee must also include 
representatives of parents, and administrators.  The advisory 
committee shall develop a staff development plan and submit it 
to the school board.  If the school board approves the plan, the 
district may use the staff development revenue authorized in 
article 1, section 18. 
    Sec. 28.  Minnesota Statutes 1986, section 126.70, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [PERMITTED USES.] A school board may approve a 
plan for any of the following purposes: 
    (1) to participate in the educational effectiveness program 
according to section 121.609; 
    (2) to provide in-service education for elementary and 
secondary teachers to improve the use of technology in education;
    (3) to provide subject area in-service education 
emphasizing the academic content of curricular areas determined 
by the district to be a priority area; 
    (4) to use experienced teachers, as mentors, to assist in 
the continued development of new teachers; 
    (5) to increase the involvement of parents, business, and 
the community in education; 
    (6) for experimental delivery systems; 
    (7) for in-service education to increase the effectiveness 
of principals and administrators; 
    (8) for in-service education or curriculum development for 
programs for gifted and talented pupils; 
    (9) for in-service education or curriculum development for 
cooperative efforts to increase curriculum offerings, as set 
forth in section 124.272; 
    (10) for improving curriculum, according to the needs 
identified under the planning, evaluation, and reporting process 
set forth in section 126.66; 
    (11) for in-service education and curriculum development 
designed to promote sex equity in all aspects of education, with 
emphasis on curricular areas such as mathematics, science, and 
technology programs; 
    (12) for in-service education or curriculum modification 
for handicapped pupils and low-achieving pupils;  
    (13) for short-term contracts as described in section 
126.72; or 
    (14) to employ teachers for an extended year to perform 
duties directly related to improving curriculum or teaching 
skills. 
    Sec. 29.  Minnesota Statutes 1986, section 126.72, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORIZATION.] As part of a program for 
excellence in teaching and curriculum, A school board may enter 
into short-term, limited contracts with classroom teachers 
employed by the district.  
    Sec. 30.  Minnesota Statutes 1986, section 126.81, 
subdivision 2, is amended to read:  
    Subd. 2.  [GRANTS FOR EXEMPLARY TEACHER EDUCATION 
PROGRAMS.] The board of teaching shall award at least three 
grants to public post-secondary institutions to develop 
exemplary teacher education programs.  The majority of grants 
shall be awarded for programs that are conducted jointly by an 
approved teacher education institution and one or more school 
districts.  
    Sec. 31.  Minnesota Statutes 1986, section 129B.041, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COPYRIGHT.] Products of projects and 
programs funded pursuant to sections 129B.01 to 129B.05, 
including curriculum and instructional materials, computer and 
telecommunications software, and associated manuals and reports, 
may be copyrighted by the council department in the name of the 
state and may be sold.  However, the state shall sell the 
products to all school districts and public agencies in the 
state at prices that do not exceed the cost of reproduction and 
distribution.  Products sold shall be clearly labeled as 
products developed pursuant to a grant or loan from the council 
on quality education.  
    Sec. 32.  Minnesota Statutes 1986, section 129B.041, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVOLVING FUND.] The education product and loan 
repayment revolving account is established in the state 
treasury.  Repayment of loans, made according to section 
129B.04, subdivision 2, and Sale proceeds up to the cost of 
reproduction and distribution from the sale of products under 
this section shall be deposited in this account.  All funds in 
this account are annually appropriated to the department of 
education and shall be used to reproduce and distribute products 
of projects and programs funded pursuant to Minnesota Statutes 
1986, sections 129B.01 to 129B.05.  
    Sec. 33.  [129B.11] [PROGRAM IMPROVEMENT GRANTS.] 
    Subdivision 1.  [PLANS; GRANT AWARDS.] The state board of 
education, with the advice of the state curriculum advisory 
committee and the advisory committee on technology in education 
for projects involving technology, shall make grants to groups 
of school districts to implement plans to improve education.  
The board may award grants to groups of districts which submit 
plans that include at least the following: 
    (1) program and curriculum changes which provide more 
learning opportunities for students;  
    (2) demonstration of a local commitment to the plan and, in 
the case of plans utilizing technology, local financial support 
including public and private partnerships; 
    (3) involvement of school district teaching staff in 
development of the plan; 
    (4) demonstration that the plan is consistent with school 
district goals established under section 126.66; and 
    (5) the structural criteria established in subdivision 2. 
    The board may establish additional criteria and shall 
establish time-lines and the grant application procedure for 
making grants. 
    Subd. 2.  [ELIGIBILITY.] To be eligible for a grant, a 
group of districts must meet one of the following criteria: 
    (1) create a consolidated district according to section 
122.23, with the consolidated school district having at least 
600 pupils in average daily membership; 
    (2) establish an education district according to section 2; 
    (3) form a group of districts that has an agreement under 
section 122.535 or 122.541 for discontinuing grades when the 
districts entering into the agreement have a total of at least 
240 pupils in average daily membership in grades 10, 11, and 12; 
or 
    (4) enter into a joint powers agreement for a technology 
cooperative where the school districts in the cooperative are 
contiguous but are significant distances apart so that other 
forms of cooperation are not practical. 
    Subd. 3.  [AMOUNTS.] The board may determine the amount of 
the grant, but a grant shall not exceed $250,000 for a group of 
districts. 
    Sec. 34.  [129B.52] [AREA LEARNING CENTER ORGANIZATION.] 
    Subdivision 1.  [GOVERNANCE.] A school district may 
establish an area learning center either by itself or in 
cooperation with other districts, an ECSU, an intermediate 
school district, public and private secondary and post-secondary 
institutions, public agencies, businesses, and foundations.  
Except for a district located in a city of the first class, a 
center must serve the geographic area of at least two districts. 
    Subd. 2.  [ACCESS TO SERVICES.] A center shall have access 
to the district's regular education programs, technology 
facilities, and staff.  It may contract with individuals or 
post-secondary institutions.  It shall seek the involvement of 
community education programs, post-secondary institutions, 
community resources, businesses, and other federal, state, and 
local public agencies.  
    Subd. 3.  [NONRESIDENT PUPILS.] A pupil who does not reside 
in the district may attend a center without consent of the 
school board of the district of residence.  
    Sec. 35.  [129B.53] [CENTER PROGRAMS AND SERVICES.] 
    Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
of a center must focus on academic and learning skills, trade 
and vocational skills, work experience, and transition services. 
    Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
programs for secondary pupils and adults.  Secondary pupils to 
be served are those who are chemically dependent, not likely to 
graduate from high school, need assistance in vocational and 
basic skills, can benefit from employment experiences, and need 
assistance in transition from school to employment.  Adults to 
be served are dislocated homemakers and workers and others who 
need basic educational and social services.  In addition to 
offering programs, the center shall coordinate the use of other 
available educational services, social services, and 
post-secondary institutions in the community.  The center may 
also provide programs for elementary and secondary pupils who 
are not attending the center to assist them in completing high 
school. 
    Subd. 3.  [RULES EXEMPTION.] Notwithstanding any law to the 
contrary, the center programs must be available throughout the 
entire year.  Pupils in a center may receive instruction for 
more than or less than the daily number of hours required by the 
rules of the state board of education.  However, a pupil must 
receive instruction each year for at least the total number of 
instructional hours required by statutes and rules.  A center 
may petition the state board under Minnesota Rules, part 
3500.1000, for exemption from other rules.  
    Subd. 4.  [GRADUATION.] Upon successful completion of the 
center program, a pupil is entitled to receive a high school 
diploma.  The pupil may elect to receive a diploma from either 
the district of residence or the district in which the center is 
located. 
    Sec. 36.  [129B.54] [RESOURCE CENTER FOR OTHER PROGRAMS.] 
    An area learning center must serve as a resource for other 
districts, educational, community, and business organizations.  
The center may charge a fee for these services.  The following 
services shall be provided for a region or the state:  
    (1) information and research for alternative programs; 
    (2) regional or state workshops on awareness, 
identification, programs, and support for these pupils; and 
    (3) recommendations for staff qualifications to ensure the 
most qualified staff can be selected for the programs. 
    Sec. 37.  [129B.55] [CENTER FUNDING.] 
    Subdivision 1.  [OUTSIDE SOURCES.] A center may accept:  
    (1) resources and services from post-secondary institutions 
serving center pupils; 
    (2) resources from job training partnership act programs, 
including funding for jobs skills training for various groups 
and the percentage reserved for education; 
    (3) resources from the department of human services and 
county welfare funding; or 
    (4) private resources, foundation grants, gifts, corporate 
contributions, and other grants.  
    Subd. 2.  [FOUNDATION REVENUE.] Payment of foundation or 
general education aid for nonresident pupils enrolled in the 
center must be made according to section 10. 
    Sec. 38.  Minnesota Statutes 1986, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 8d.  [PROGRAM IMPROVEMENT LEVY.] In the year a 
district receives a grant under section 33, it must levy the 
lesser of .5 mills times the adjusted assessed valuation of the 
district or an amount equal to its share of the grant.  If a 
group of districts receives a grant, the group shall determine 
the proportionate share of the grant for each district.  
    Sec. 39.  [PLANNING GRANTS FOR FISCAL YEARS 1988 AND 1989.] 
    Subdivision 1.  [EXISTING PROGRAMS.] Up to 20 planning 
grants of $5,000 may be awarded for fiscal year 1988 for 
existing alternative programs.  The grants are to prepare a plan 
for an existing program to become an area learning center by 
expanding or redesigning its services.  
    Subd. 2.  [ELIGIBILITY REQUIREMENTS.] To qualify for a 
planning grant, an existing program must have the following:  
    (1) an educational program that includes at least some of 
the programs in section 19, subdivision 2; 
    (2) outreach activities; and 
    (3) an established policy of accepting nonresident pupils.  
    Subd. 3.  [GRANT AWARDS.] The commissioner of education 
shall award planning grants based on short descriptions of 
applicants' current and proposed programs.  Grant recipients 
must be geographically disbursed throughout the state.  
    Subd. 4.  [PLANS.] A grant recipient shall submit a plan to 
the commissioner by January 1, 1988.  The plan must include: 
    (1) the variety of people to be served; 
    (2) alternative approaches to services; 
    (3) interagency cooperation; 
    (4) community, business, parent, and pupil involvement; 
    (5) methods to identify potential dropouts; 
    (6) outreach activities; 
    (7) needs assessment of community services; 
    (8) sources of funding; 
    (9) services for jobs and employability skills; 
    (10) commitments from cooperating agencies, businesses, and 
others; 
    (11) resource services to be provided to other programs and 
agencies; 
    (12) criteria for evaluation, including measuring learner 
outcomes; 
    (13) methods by which the area learning center will provide 
practical expertise and leadership for other centers; and 
    (14) how the program will attempt to meet the requirements. 
    Sec. 40.  [1988 SELECTION OF EXEMPLARY CENTERS.] 
    Based on the plans, the commissioner of education shall 
select four sites to be designated exemplary area learning 
centers.  The sites must be geographically distributed 
throughout the state.  The commissioner shall award each site a 
grant of $37,500. 
    Sec. 41.  [1989 AND 1990 EVALUATION.] 
    The commissioner of education shall provide for independent 
evaluation of the program and cost of the area learning centers 
during fiscal years 1989 and 1990.  A preliminary report shall 
be submitted to the legislature by February 1, 1989.  The final 
report shall be submitted by February 1, 1990.  Both reports 
must provide information about: 
    (1) whether the programs were implemented according to the 
plan; 
    (2) the success of the programs; 
    (3) the financial and other resources available to and used 
by the centers; 
    (4) cooperation and coordination among agencies; 
    (5) programs that were offered; and 
    (6) the cost of the programs. 
    Sec. 42.  [TASK FORCE FOR TEACHER CENTERS.] 
    An advisory task force is established to assist the board 
of teaching during fiscal years 1988 and 1989 in various aspects 
of teacher centers.  The advisory task force consists of 15 
persons appointed as follows:  (1) two elementary, two 
secondary, and one special area teacher appointed by the 
Minnesota federation of teachers; (2) two elementary, two 
secondary, and one special area teacher appointed by the 
Minnesota education association; (3) one member appointed by the 
Minnesota school boards association; (4) one member representing 
the faculty of post-secondary colleges of education appointed by 
the higher education coordinating board; (5) one member 
appointed by the board of teaching; (6) one member appointed by 
the commissioner of education; and (7) one member appointed by 
the state board of education.  
    The board of teaching, through the advisory task force, 
shall prescribe the form and manner of applications for grants 
for teacher centers.  Each application must include the approval 
of the teachers' exclusive representatives and the school boards 
of all participating districts.  
    Upon approval of an application by the advisory task force, 
the board of teaching shall award a planning grant of not more 
than $75,000 for a teacher center.  The grant shall be used to 
develop a final plan of operation for a teacher center.  The 
advisory task force shall recommend the amount of a planning 
grant based on the number of teachers to be served by the center.
    Each grant recipient shall provide information to the board 
of teaching about how the proceeds of the grant were used.  A 
report about the use of the money shall be submitted by the 
board of teaching to the state board of education and the 
education committees of the legislature by January 1, 1988. 
    Sec. 43.  [1988-1989 GRANTS FOR TEACHER CENTERS.] 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, "teacher" has the meaning given it in section 179A.03, 
subdivision 2.  
    Subd. 2.  [ESTABLISHMENT.] During the biennium, a teacher 
center may be established by one or more school boards and the 
exclusive representatives of the teachers.  A grant from the 
board of teaching may be used to plan the center.  The teacher 
center shall serve at least ten districts or 3,000 teachers.  
    Subd. 3.  [POLICY BOARD MEMBERSHIP.] Representatives of 
exclusive representatives and representatives of the school 
boards shall mutually determine the composition of the policy 
board according to the guidelines in this subdivision.  A 
majority of the policy board must be teachers.  The number of 
policy board members from each participating district must be in 
proportion to the number of teachers in each district.  The 
board shall be composed of elementary, secondary, and special 
area teachers, parents, and representatives of school boards, 
post-secondary education, and either business or labor.  At 
least one teacher from each participating district shall be a 
member of the board.  
    Subd. 4.  [BOARD POWERS AND DUTIES.] The board shall 
formulate policy, designate a fiscal agent, control the budget, 
expend funds to accomplish the purposes of the center, contract 
for technical and other assistance, and perform other managerial 
or supervisory activities consistent with the rules of the state 
board of education.  The board may employ staff or contract for 
consulting services.  
    Subd. 5.  [CENTER FUNCTIONS.] A teacher center shall 
perform functions according to this subdivision.  The center 
shall assist teachers, diagnose learning needs, experiment with 
the use of multiple instructional approaches, assess pupil 
outcomes, assess staff development needs and plans, and teach 
school personnel about effective pedagogical approaches.  The 
center shall develop and produce curricula and curricular 
materials designed to meet the educational needs of pupils being 
served by applying educational research and new and improved 
methods, practices, and techniques.  The center shall provide 
programs to improve the skills of teachers to meet the special 
educational needs of pupils.  The center shall provide programs 
to familiarize teachers with developments in curriculum 
formulation and educational research, including how research can 
be used to improve teaching skills.  The center shall facilitate 
sharing of resources, ideas, methods, and approaches directly 
related to classroom instruction and improve teachers' 
familiarity with current teaching materials and products for use 
in their classrooms.  The center shall provide in-service 
programs. 
    Sec. 44.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [CENTER PLANNING GRANTS.] For area learning 
center planning grants there is appropriated:  
    $100,000 ..... 1988. 
    Subd. 3.  [EXEMPLARY SITES FOR AREA LEARNING CENTERS.] For 
grants for exemplary sites for area learning centers there is 
appropriated:  
    $150,000 ..... 1989.  
    Subd. 4.  [INDEPENDENT EVALUATION.] For independent 
evaluation of area learning centers there is appropriated:  
    $20,000 ..... 1989. 
    Subd. 5.  [MENTORSHIP PROGRAMS.] There is appropriated for 
the mentorship programs under section 10: 
    $250,000 ..... 1988, 
    $250,000 ..... 1989. 
    Subd. 6.  [AID FOR PLANNING, EVALUATION, AND REPORTING 
PROCESS.] For aid for the planning, evaluation, and reporting 
process according to Minnesota Statutes, section 123.7431, there 
is appropriated: 
    $1,014,300 ..... 1988, 
    $1,021,800 ..... 1989. 
    Subd. 7.  [PROGRAM IMPROVEMENT GRANTS.] For the purposes of 
awarding program improvement grants under section 33 there is 
appropriated: 
    $1,500,000 ..... 1988. 
    This amount shall be available until the end of the 
biennium.  
    Subd. 8.  [TEACHER CENTERS.] For teacher centers there is 
appropriated: 
    $100,000 ..... 1988, 
    $100,000 ..... 1989. 
    Sec. 45.  [REPEALER.] 
    Minnesota Statutes 1986, sections 121.20; 126.65; 126.66; 
126.67, subdivisions 1, 1a, 2a, 5b, and 9; 126.71; 129B.01; 
129B.02; 129B.04; 129B.041, subdivision 4; 129B.43, subdivisions 
2, 3, and 6; 129B.05; 129B.35; and 129B.37 are repealed. 
    Sec. 46.  [EFFECTIVE DATE.] 
    Section 8 is effective the day following final enactment. 

                                ARTICLE 9

                                LIBRARIES
    Section 1.  Minnesota Statutes 1986, section 134.10, is 
amended to read:  
    134.10 [BOARD VACANCIES; COMPENSATION.] 
    The library board president shall report vacancies in the 
board to the council or the board of county commissioners.  The 
council or board of county commissioners shall fill the 
vacancies by appointment for the unexpired term.  Library board 
members shall receive no compensation for their services but may 
be reimbursed for actual and necessary traveling expenses 
incurred in the discharge of library board duties and activities 
or a per diem allowance according to section 375.47 in place of 
the expenses. 
    Sec. 2.  [134.341] [COUNTY FINANCIAL SUPPORT.] 
    To ensure the availability of public library service to all 
people, every county shall provide financial support for public 
library services at no less than minimum amounts as specified in 
sections 134.33 and 134.34 and shall participate in the regional 
public library system to which it is assigned by the state board 
of education under section 134.34, subdivision 3.  Each county 
board of commissioners shall appoint at least one county 
resident to serve as a representative on the regional public 
library system board and may appoint more than one 
representative under terms and conditions of the regional public 
library system contract. 
    Sec. 3.  [APPROPRIATION.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
pursuant to sections 134.32 to 134.35 for the provision of 
library service there is appropriated: 
    $4,899,700 ..... 1988, 
    $4,974,800 ..... 1989. 
    The appropriation for 1988 includes $671,100 for aid for 
fiscal year 1987 payable in fiscal year 1988 and $4,228,600 for 
aid for fiscal year 1988 payable in fiscal year 1988. 
    The appropriation for 1989 includes $746,200 for aid for 
fiscal year 1988 payable in fiscal year 1989 and $4,228,600 for 
aid for fiscal year 1989 payable in fiscal year 1989. 
    The appropriations are based on aid entitlements of 
$4,974,800 for fiscal year 1988 and $4,974,800 for fiscal year 
1989. 
    Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
grants pursuant to sections 134.353 and 134.354 to multicounty, 
multitype library systems there is appropriated: 
    $216,800 ..... 1988, 
    $221,500 ..... 1989. 
    The appropriation for 1988 includes $28,500 for aid for 
fiscal year 1987 payable in fiscal year 1988 and $188,300 for 
aid for fiscal year 1988 payable in fiscal year 1988. 
    The appropriation for 1989 includes $33,200 for fiscal year 
1988 payable in fiscal year 1989 and $188,300 for aid for fiscal 
year 1989 payable in fiscal year 1989. 
    The appropriations are based on aid entitlements of 
$221,500 for fiscal year 1988 and $221,500 for fiscal year 1989. 
    Subd. 4.  [ONLINE COMPUTER-BASED LIBRARY CATALOG SYSTEM.] 
For the installation of an online computer-based library catalog 
system in state agency libraries there is appropriated: 
     $250,000.....1988.
    This sum shall be available until June 30, 1989. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Section 2 is effective beginning with the levies certified 
in 1989 and for regional library system participation payments 
beginning January 1, 1990. 

                               ARTICLE 10

                             STATE AGENCIES'

                      APPROPRIATIONS FOR EDUCATION
Section 1.   SUMMARY BY AGENCY - ALL FUNDS 
Department of 
  Education         $ 12,649,300   $ 12,551,600   $   25,200,900
Faribault Academies $  6,390,400   $  6,372,400   $   12,762,800
School and                                                      
  Resource Center
  for the Arts      $  2,206,200   $  2,649,500   $    4,855,700
                                              APPROPRIATIONS 
                                          Available for the Year 
                                               Ending June 30
                                          1988           1989 
     Sec. 2.  DEPARTMENT OF 
EDUCATION 
     Subdivision 1.  Total 
Appropriation                           $12,649,300   $12,551,600
 Approved Complement    1988     1989 
General Fund            224.0    224.0 
Other                    12.5     12.5 
Federal                 144.4    144.4 
Total                   380.9    380.9
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
 The commissioner of education, with the 
approval of the commissioner of 
finance, may transfer unencumbered 
balances among the programs during the 
biennium.  Transfers must be reported 
immediately to the senate and house of 
representatives education committees.  
During the biennium, the commissioner 
of education may transfer money among 
the various object of expenditure 
categories and activities within each 
program, unless restricted by executive 
order. 
 The commissioner of education, with the 
approval of the commissioner of 
finance, may transfer complement among 
funds if necessary.  The commissioner 
must report material changes to the 
senate and house of representatives 
education committees.  
 The commissioner of education shall 
develop an organizational management 
plan for the department of education 
for the purpose of implementing state 
education policies as established by 
the legislature.  The plan must be 
contained within the existing 
department budget and complement.  The 
plan must include:  (1) methods for 
effectively implementing legislative 
education policies; (2) methods of 
substantially increasing direct 
services to school district teachers, 
principals, superintendents, and school 
boards in meeting legislative 
requirements and the educational needs 
of students; and (3) methods of using 
regional organizations to increase 
direct services to districts. 
 The management analysis team of the 
department of administration shall 
evaluate the plan and report the 
findings and recommendations to the 
house of representatives and senate 
education committees by January 15, 
1988. 
 The commissioner of education shall 
present the organizational management 
plan to the house of representatives 
and senate education committees for 
approval by January 15, 1988.  
     Subd. 2.  Educational Services 
     1988           1989 
  $ 7,360,500     $ 7,313,000
 $20,700 each year is from the trunk 
highway fund. 
 $60,000 each year is from the public 
health fund.  
 The commissioner of education shall 
provide for direct local technical 
assistance to districts in meeting the 
curriculum requirements specified in 
the planning, evaluating, and reporting 
process.  In addition to existing 
curriculum services, the commissioner 
shall enter into performance contract 
agreements for general curriculum 
specialist services with educational 
cooperative service units or other 
regional educational service agencies.  
If more than one agency submits a 
proposal to provide services to school 
districts within an educational 
cooperative service unit region, the 
department shall encourage the agencies 
to develop a joint proposal.  The 
commissioner shall evaluate the 
performance agreements annually.  This 
assistance shall be provided in 
conjunction with the educational 
effectiveness delivery system.  
$400,000 in each year is for this 
purpose. 
 $157,500 in fiscal year 1988 and 
$67,800 in fiscal year 1989 is for 
services to school districts related to 
acquired immune deficiency syndrome. 
 $50,000 in fiscal year 1988 and $75,000 
in fiscal year 1989 is for 
administration of state planning, 
evaluation and reporting. 
 $75,000 each year is for technical 
assistance for local staff development 
plans and administration costs for 
implementing mentorship programs.  
 Beginning in fiscal year 1989, 
responsibility for the education 
research information service 
established by the council on quality 
education is transferred to the 
interagency resource and information 
center.  
 The governor's council on youth is 
discontinued.  
 $198,300 each year is for the secondary 
vocational student organization center. 
 Two professional and one clerical 
complement are transferred from the 
special education section to the 
Faribault residential academies and 
resource center for the purpose of 
establishing a resource center for 
hearing-impaired, visually-impaired and 
multiply handicapped students.  
$125,000 is available each year for 
this purpose.  
 One professional complement is added in 
each year in the curriculum services 
research information service learner 
outcomes.  
 The complement of the secondary 
vocational section is reduced by two 
each year.  
 Two complement are transferred from 
federal to special purpose for the 
alcohol impaired driver program.  
$100,000 each year is available from 
the alchohol impaired driver account 
for these complement.  
 One-half complement each year is for 
state agency library automation.  
 One complement is added to the 
community education section each year 
for additional responsiblities related 
to youth.  
     Subd. 3.  Administration and Financial 
Services 
     1988           1989 
  $5,288,800     $5,238,600
 The commissioner of education shall 
maintain no more than six total 
complement in the categories of 
commissioner, deputy commissioner, 
assistant commissioner, assistant to 
the commissioner, or executive 
assistant. 
 The commissioner of education shall 
consolidate within the education aids 
and levies section all computation, 
analysis, payment, and data functions 
for aids and levies for special 
education, community education, and 
secondary vocational education.  Each 
year's appropriation includes $50,000 
transferred from educational services 
for this purpose.  One complement each 
year is transferred from educational 
services for this purpose.  
 The state management effectiveness 
division shall provide risk management 
analysis, program cost analysis, and 
school bus safety services.  The state 
aids and levies section is increased by 
two positions and $100,000 each year 
for these purposes.  
 $75,000 each year is for management 
assistance to school districts.  
 $60,000 in fiscal year 1988 is for 
development of program cost analysis 
capability in the education aids and 
levies section and a study of program 
costs under the direction of the 
legislative commission on public 
education.  Any unexpended balance does 
not cancel and is available for the 
second year. 
 $1,098,700 for fiscal year 1988 and 
$1,100,800 for fiscal year 1989 is for 
education data systems.  Any unexpended 
balance remaining in the first year 
does not cancel and is available for 
the second year. 
     Sec. 3.  FARIBAULT RESIDENTIAL 
ACADEMIES AND RESOURCE CENTER 
Total Appropriations               $2,206,200   $2,649,500
 Approved Complement   1988    1989 
State                  185.5   185.5 
Federal                  8.0     7.0 
Total                  193.5   192.5 
 The state board of education, with the 
approval of the commissioner of 
finance, may transfer complement among 
funds if necessary.  The state board 
must report material changes to the 
senate and house of representatives 
education committees.  
 Three complement and $125,000 each year 
are for operation of a resource center 
for hearing-impaired, visually-impaired 
and multiply handicapped students. 
 $107,600 in 1988 and up to $107,600 in 
1989 is for repairs, replacements, and 
betterment. 
 $53,300 in 1988 and up to $53,300 in 
1989 is for repair and purchase of 
equipment. 
 Any unexpended balance remaining from 
the appropriation in this section in 
1988 shall not cancel but is available 
in 1989. 
     Sec. 4.  SCHOOL AND RESOURCE 
CENTER FOR THE ARTS 
     Total Appropriations               $ 2,206,200   $ 2,649,500
 Approved Complement   1988    1989 
 State                   15       21 
    Sec. 5.  Minnesota Statutes 1986, section 43A.08, 
subdivision 1, is amended to read:  
    Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
positions are held by employees who are: 
    (a) Chosen by election or appointed to fill an elective 
office; 
    (b) Heads of agencies required by law to be appointed by 
the governor or other elective officers, and the executive or 
administrative heads of departments, bureaus, divisions and 
institutions specifically established by law in the unclassified 
service; 
    (c) Deputy and assistant agency heads, and one confidential 
secretary in the agencies listed in subdivision 1a; 
    (d) The confidential secretary to each of the elective 
officers of this state and, for the secretary of state, state 
auditor, and state treasurer, an additional deputy, clerk, or 
employee; 
    (e) Intermittent help employed by the commissioner of 
public safety to assist in the issuance of vehicle licenses; 
    (f) Employees in the offices of the governor and of the 
lieutenant governor, and one confidential employee for the 
governor in the office of the adjutant general; 
    (g) Employees of the legislature and of legislative 
committees or commissions; provided that employees of the 
legislative audit commission, except for the legislative 
auditor, the deputy legislative auditors, and their confidential 
secretaries, shall be employees in the classified service; 
    (h) Presidents, vice presidents, deans, other managers and 
professionals in academic and academic support programs, 
administrative or service faculty, teachers, research assistants 
and student employees eligible under terms of the federal 
economic opportunity act work study program in the school and 
resource center for the arts, state universities and community 
colleges.  This paragraph shall not be construed to include the 
custodial, clerical or maintenance employees, or any 
professional or managerial employee performing duties in 
connection with the business administration of these 
institutions. 
    (i) Officers and enlisted persons in the national guard; 
    (j) Attorneys, legal assistants, examiners, and three 
confidential employees appointed by the attorney general or 
employed with the attorney general's authorization; 
    (k) Judges and all employees of the judicial branch, 
referees, receivers, jurors, and notaries public, except 
referees and adjusters employed by the department of labor and 
industry; 
    (l) Members of the state patrol; provided that selection 
and appointment of state patrol troopers shall be made in 
accordance with applicable laws governing the classified service;
    (m) Chaplains employed by the state; 
    (n) Examination monitors and intermittent training 
instructors employed by the departments of employee relations 
and commerce; 
    (o) Student workers; and 
    (p) Employees unclassified pursuant to other statutory 
authority. 
    Sec. 6.  Minnesota Statutes 1986, section 43A.08, 
subdivision 1a, is amended to read:  
    Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
authorities for the following agencies may designate additional 
unclassified positions according to this subdivision:  the 
departments of administration; agriculture; commerce; 
corrections; jobs and training; education; employee relations; 
energy and economic development; finance; health; human rights; 
labor and industry; natural resources; office of administrative 
hearings; public safety; public service; public welfare; 
revenue; transportation; and veterans affairs; the housing 
finance, state planning, and pollution control agencies; the 
state board of investment; the offices of the secretary of 
state, state auditor, and state treasurer; and the state board 
of vocational technical education; and the school and resource 
center for the arts. 
    A position designated by an appointing authority according 
to this subdivision must meet the following standards and 
criteria:  
    (a) the designation of the position would not be contrary 
to other law relating specifically to that agency; 
    (b) the person occupying the position would report directly 
to the agency head or deputy agency head and would be designated 
as part of the agency head's management team; 
    (c) the duties of the position would involve significant 
discretion and substantial involvement in the development, 
interpretation, and implementation of agency policy; 
    (d) the duties of the position would not require primarily 
personnel, accounting, or other technical expertise where 
continuity in the position would be important; 
    (e) there would be a need for the person occupying the 
position to be accountable to, loyal to, and compatible with the 
governor and the agency head, or the employing constitutional 
officer; 
    (f) the position would be at the level of division or 
bureau director or assistant to the agency head; and 
    (g) the commissioner has approved the designation as being 
consistent with the standards and criteria in this subdivision. 
    Sec. 7.  Minnesota Statutes 1986, section 129C.10, 
subdivision 1, is amended to read:  
    Subdivision 1.  [GOVERNANCE.] The board of the Minnesota 
school of and resource center for the arts and resource center 
shall consist of 15 persons.  The members of the board shall be 
appointed by the governor with the advice and consent of the 
senate.  At least one member must be appointed from each 
congressional district. 
    Sec. 8.  Minnesota Statutes 1986, section 129C.10, 
subdivision 3, is amended to read: 
    Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
the powers necessary for the care, management, and control of 
the Minnesota school of and resource center for the arts and 
resource center and all its real and personal property.  The 
powers shall include, but are not limited to, the 
following: those listed in this subdivision. 
    (1) to (b) The board may employ and discharge necessary 
employees, and contract for other services to ensure the 
efficient operation of the school and resource center;. 
    (2) to (c) The board may establish a charitable foundation 
and accept, in trust or otherwise, any gift, grant, bequest, or 
devise for educational purposes and hold, manage, invest, and 
dispose of them and the proceeds and income of them according to 
the terms and conditions of the gift, grant, bequest, or devise 
and its acceptance;. 
    (3) to (d) The board may establish or coordinate evening, 
continuing education, extension, and summer programs through the 
resource center for teachers and pupils;. 
    (4) to develop and pilot test an interdisciplinary 
education program.  An academic curriculum must be offered with 
special programs in dance, literary arts, media arts, music, 
theater, and visual arts in both the popular and fine arts 
traditions; 
    (e) The board may identify pupils in grades 9 to 12 who 
have artistic talent, either demonstrated or potential, in 
dance, literary arts, media arts, music, theater, and visual 
arts, or in more than one art form. 
    (f) The board shall educate pupils with artistic talent by 
providing:  
    (1) a pilot interdisciplinary academic and arts program for 
pupils in the 11th and 12th grades, beginning with 135 pupils in 
the 11th grade in September 1989, and 135 pupils in the 11th 
grade and 135 pupils in the 12th grade in September 1990; 
    (2) intensive arts seminars for one or two weeks for 9th 
and 10th grade pupils; 
    (3) summer arts institutes for pupils in grades 9 to 12; 
    (4) artist mentor and extension programs in regional sites; 
and 
    (5) teacher education programs for indirect curriculum 
delivery. 
    (5) to (g) The board may determine the location for the 
Minnesota school of and resource center for the arts and 
resource center and any additional facilities related to the 
school, including the authority to lease a temporary facility;. 
    (6) to (h) The board must plan for the enrollment of pupils 
to ensure statewide access and participation; on an equal basis 
from each congressional district.  
    (7) to (i) The board may establish advisory committees as 
needed to advise the board on policies and issues; and. 
    (8) to (j) The board may request the commissioner of 
education for assistance and services. 
    (k) The board may enter into contracts with other public 
and private agencies and institutions for residential and 
building maintenance services if it determines that these 
services could be provided more efficiently and less expensively 
by a contractor than by the board itself.  The board may also 
enter into contracts with public or private agencies and 
institutions, school districts or combinations of school 
districts, or educational cooperative service units to provide 
supplemental educational instruction and services. 
    (l) The board may provide or contract for services and 
programs by and for the arts high school, including a school 
store, operating in connection with the school; theatrical 
events; and other programs and services that, in the 
determination of the board, serve the purposes of the arts high 
school. 
    (m) The board may provide for transportation of pupils to 
and from the school and resource center for the arts for all or 
part of the school year, as the board considers advisable and 
subject to its rules.  Notwithstanding any other law to the 
contrary, the board may charge a reasonable fee for 
transportation of pupils.  Every driver providing transportation 
of pupils under this paragraph must possess all qualifications 
required by the state board of education.  The board may 
contract for furnishing authorized transportation under rules 
established by the commissioner of education and may purchase 
and furnish gasoline to a contract carrier for use in the 
performance of a contract with the board for transportation of 
pupils to and from the school and resource center for the arts.  
When transportation is provided, scheduling of routes, 
establishment of the location of bus stops, the manner and 
method of transportation, the control and discipline of pupils, 
and any other related matter is within the sole discretion, 
control, and management of the board. 
    (n) The board may provide room and board for its pupils. 
    (o) The board may establish and set fees for services and 
programs without regard to chapter 14.  If the board sets fees 
not authorized or prohibited by the Minnesota public school fee 
law, it may do so without complying with the requirements of 
section 120.75, subdivision 1. 
    Sec. 9.  Minnesota Statutes 1986, section 129C.10, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [ARTS HIGH SCHOOL FUND APPROPRIATION.] There is 
established in the state treasury an arts high school fund.  All 
money collected by the board shall be deposited in the fund.  
Money in the fund, including interest earned, is annually 
appropriated to the board for the operation of its services and 
programs. 
    Sec. 10.  Minnesota Statutes 1986, section 129C.10, 
subdivision 4, is amended to read:  
    Subd. 4.  [EMPLOYEES.] (a) (1) The board shall appoint a 
director of the school of and resource center for the arts and 
resource center who shall serve in the unclassified service. 
    (2) The board shall employ, upon recommendation of the 
director, a coordinator of the resource center who shall serve 
in the unclassified service. 
    (3) The board shall employ, upon recommendation of the 
director, up to six department chairs who shall serve in the 
unclassified service.  The chairs shall be licensed teachers 
unless no licensure exists for the subject area or discipline 
for which the chair is hired. 
    (4) The board may employ other necessary employees, upon 
recommendation of the director. 
    (5) The board shall employ, upon recommendation of the 
director, an executive secretary for the director, who shall 
serve in the unclassified service. 
    (b) The employees hired under this subdivision and other 
necessary employees hired by the board shall be state employees 
in the executive branch. 
    Sec. 11.  Minnesota Statutes 1986, section 129C.10, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [ADMISSION AND CURRICULUM REQUIREMENTS 
GENERALLY.] (a) The board may adopt rules for admission to and 
discharge from the school and rules regarding the operation of 
the school and resource center, including transportation of its 
pupils.  Rules covering admission and discharge are governed by 
chapter 14.  Rules regarding the operation of the school are not 
governed by chapter 14. 
    (b) Proceedings concerning admission to or discharge from 
the school, a pupil's program at the school, and a pupil's 
progress at the school are governed by the rules adopted by the 
board and are not contested cases governed by chapter 14. 
    Sec. 12.  Minnesota Statutes 1986, section 129C.10, 
subdivision 5, is amended to read:  
    Subd. 5.  [RESOURCE CENTER.] Beginning in the 1985-1986 
school year, The resource center shall offer programs that are 
directed at improving arts education in elementary and secondary 
schools throughout the state.  The programs offered shall 
include at least summer institutes offered to pupils in various 
regions of the state, in-service workshops for teachers, and 
leadership development programs for teachers.  The board shall 
establish a resource center advisory council composed of 
elementary and secondary arts educators, representatives from 
post-secondary educational institutions, department of 
education, state arts board, regional arts councils, educational 
cooperative service units, school district administrators, 
parents, and other organizations involved in arts education.  
The advisory council shall include representatives from a 
variety of arts disciplines and from various areas of the 
state.  The advisory council shall advise the board about the 
activities of the center.  Programs offered through the resource 
center shall promote and develop arts education programs offered 
by school districts and arts organizations and shall assist 
school districts and arts organizations in developing innovative 
programs.  The board may contract with nonprofit arts 
organizations to provide programs through the resource center.  
The advisory council shall advise the board on contracts and 
programs related to the operation of the resource center.  
    Sec. 13.  Minnesota Statutes 1986, section 129C.10, 
subdivision 6, is amended to read:  
    Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
SPACE.] Public post-secondary institutions shall provide space 
for programs offered by the Minnesota school of and resource 
center for the arts and resource center at no cost to the 
Minnesota school of and resource center for the arts and 
resource center to the extent that space is available at the 
public post-secondary institutions. 
    Approved June 4, 1987