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

                            CHAPTER 647-H.F.No. 2189 
                  An act relating to education; prekindergarten through 
                  grade 12; providing for general education revenue; 
                  transportation; special programs; community education; 
                  facilities; organization and cooperation; commitment 
                  to excellence; other programs; miscellaneous 
                  provisions; libraries; state agencies; school bus 
                  safety; conforming amendments; independent school 
                  district No. 191, Burnsville; technical college 
                  funding shift; providing for appointments; providing 
                  for penalties; appropriating money; amending Minnesota 
                  Statutes 1992, sections 13.04, by adding a 
                  subdivision; 120.101, by adding a subdivision; 120.17, 
                  subdivision 1, and by adding a subdivision; 121.612, 
                  subdivision 7; 121.904, subdivision 4e; 121.908, 
                  subdivision 5; 121.912, subdivision 5; 121.935, 
                  subdivision 6; 122.23, subdivisions 6, 8, 10, 13, and 
                  by adding a subdivision; 122.531, subdivision 9; 
                  122.533; 122.91, subdivision 3; 122.937, subdivision 
                  4; 123.35, subdivision 19a, and by adding 
                  subdivisions; 123.3514, subdivisions 3 and 4; 123.39, 
                  subdivision 1; 123.58, subdivisions 2 and 4; 123.78, 
                  by adding a subdivision; 123.932, subdivision 11; 
                  124.19, subdivision 1b; 124.195, subdivisions 3, 3a, 
                  6, and by adding a subdivision; 124.214, subdivision 
                  2; 124.223, subdivisions 1, 4, 6, and by adding a 
                  subdivision; 124.225, by adding subdivisions; 124.242; 
                  124.244, subdivision 4; 124.248, subdivision 3; 
                  124.26, subdivision 1b; 124.2601, subdivisions 3, 5, 
                  and 7; 124.2711, by adding a subdivision; 124.2713, by 
                  adding a subdivision; 124.2721, subdivisions 1 and 5; 
                  124.2725, subdivision 16; 124.278, subdivision 1; 
                  124.32, subdivision 7; 124.46, subdivision 3; 124.573, 
                  by adding a subdivision; 124.6472, subdivision 1; 
                  124.84, by adding a subdivision; 124.85, subdivision 
                  2, and by adding subdivisions; 124.86, subdivision 2; 
                  124.90, by adding a subdivision; 124.912, by adding a 
                  subdivision; 124.914, subdivision 1; 124.95, 
                  subdivision 4; 124A.02, by adding subdivisions; 
                  124A.03, subdivision 2a; 124A.22, subdivision 2a; 
                  124A.26, by adding a subdivision; 124A.28, by adding a 
                  subdivision; 124C.49; 125.03, by adding a subdivision; 
                  125.09, subdivision 1; 125.188, subdivision 1; 126.02, 
                  subdivision 1; 126.15, subdivision 4; 126.23; 126.51, 
                  subdivision 1; 126.69, subdivisions 1 and 3; 126.77, 
                  subdivision 1; 126.78; 126A.04, subdivision 5; 127.03, 
                  subdivision 3; 127.27, subdivision 5; 127.31, by 
                  adding a subdivision; 127.38; 127.43, subdivision 1; 
                  129C.15, by adding a subdivision; 134.195, subdivision 
                  10; 136A.125, subdivision 3; 136D.23, subdivision 2; 
                  136D.26; 136D.281, by adding a subdivision; 136D.74, 
                  subdivision 2a; 136D.741, by adding a subdivision; 
                  136D.83, subdivision 2; 136D.86; 136D.88, by adding a 
                  subdivision; 169.01, subdivision 6; 169.21, 
                  subdivision 2; 169.441, subdivision 3; 169.442, 
                  subdivision 1; 169.443, subdivision 8; 169.445, 
                  subdivisions 1 and 2; 169.446, subdivision 3; 169.447, 
                  subdivision 6; 169.64, subdivision 8; 171.01, 
                  subdivision 22; 171.321, subdivision 3, and by adding 
                  subdivisions; 171.3215; 179A.07, subdivision 6; 
                  252.21; 260.181, subdivision 2; 272.02, subdivision 8; 
                  475.61, subdivision 4; 631.40, subdivision 1a; 
                  Minnesota Statutes 1993 Supplement, sections 16A.152, 
                  subdivision 2; 120.064, subdivisions 3 and 16; 
                  120.101, subdivision 5b; 120.17, subdivisions 3, 11a, 
                  11b, 12, and 17; 121.11, subdivisions 7c and 7d; 
                  121.702, subdivisions 2 and 9; 121.703; 121.705; 
                  121.706; 121.707; 121.708; 121.709; 121.710; 121.831, 
                  subdivision 9; 121.8355, subdivision 1; 121.885, 
                  subdivisions 1, 2, and 4; 121.904, subdivisions 4a and 
                  4c; 121.931, subdivision 5; 123.351, subdivision 8; 
                  123.3514, subdivisions 6 and 6b; 123.58, subdivisions 
                  6, 7, 8, and 9; 124.155, subdivisions 1 and 2; 124.17, 
                  subdivisions 1 and 2f; 124.19, subdivision 1; 124.225, 
                  subdivisions 1 and 7e; 124.226, subdivisions 3a and 9; 
                  124.243, subdivision 8; 124.244, subdivision 1; 
                  124.248, subdivision 4; 124.26, subdivisions 1c and 2; 
                  124.2711, subdivision 1; 124.2713, subdivision 5; 
                  124.2714; 124.2727, subdivisions 6a, 6d, and by adding 
                  a subdivision; 124.573, subdivisions 2b, 2e, and 3; 
                  124.6469, subdivision 3; 124.83, subdivision 1; 
                  124.85, subdivisions 1, 4, and 5; 124.91, subdivisions 
                  3 and 5; 124.914, subdivision 4; 124.95, subdivision 
                  1; 124.961; 124A.029, subdivision 4; 124A.03, 
                  subdivisions 1c, 2, and 3b; 124A.22, subdivisions 5, 
                  6, and 8; 124A.225, subdivisions 1, 4, and by adding a 
                  subdivision; 124A.23, subdivision 1; 124A.29, 
                  subdivision 1; 124A.292, subdivision 3; 124C.60; 
                  125.05, subdivision 1a; 125.138, subdivision 9; 
                  125.185, subdivision 4; 125.230, subdivisions 3, 4, 
                  and 6; 125.231, subdivisions 1 and 4; 125.623, 
                  subdivision 3; 125.706; 126.22, subdivisions 3, 3a, 
                  and 4; 126.239, subdivision 3; 126.70, subdivisions 1 
                  and 2a; 127.46; 171.321, subdivision 2; 245.492, 
                  subdivision 10; 275.48; Laws 1992, chapter 499, 
                  article 6, section 34; 11, section 9; Laws 1993, 
                  chapter 224, articles 1, section 38; 2, section 15, 
                  subdivision, as amended; 3, sections 36, subdivision 
                  2; 38, subdivision 22; 4, section 44, subdivisions 6 
                  and 20; 5, sections 43, 46, subdivisions 2, 3, and 4; 
                  6, sections 30, subdivision 2; 34, subdivision 2; 7, 
                  section 28, subdivisions 3, 4, and 11; 8, sections 20, 
                  subdivision 2; 22, subdivisions 6 and 12; 12, section 
                  39; 15, sections 2 and 3; proposing coding for new law 
                  in Minnesota Statutes, chapters 120; 121; 122; 123; 
                  124; 124A; 125; 126; 134; 169; repealing Minnesota 
                  Statutes 1992, sections 121.904, subdivision 4e; 
                  121.935, subdivision 7; 122.23, subdivision 13a; 
                  122.91, subdivisions 5 and 7; 122.93, subdivision 7; 
                  122.937; 122.94, subdivisions 2, 3, and 6; 122.945; 
                  136D.22, subdivision 3; 136D.27; 136D.71, subdivision 
                  2; 136D.73, subdivision 3; 136D.74, subdivisions 2a, 
                  2b, and 4; 136D.82, subdivision 3; 136D.87; 169.441, 
                  subdivision 2; 169.442, subdivisions 2 and 3; 169.445, 
                  subdivision 3; 169.447, subdivision 3; 169.45; 
                  Minnesota Statutes 1993 Supplement, sections 121.935, 
                  subdivision 5; 123.80; 124.2727, subdivisions 6, 7, 
                  and 8; Laws 1992, chapter 499, article 6, section 39, 
                  subdivision 3; Laws 1993, chapter 224, article 1, 
                  section 37; 8, section 14; Minnesota Rules, parts 
                  3520.3600; 3520.3700; 8700.6410; 8700.9000; 8700.9010; 
                  8700.9020; and 8700.9030. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                           GENERAL EDUCATION REVENUE 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        16A.152, subdivision 2, is amended to read: 
           Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
        of a forecast of general fund revenues and expenditures the 
        commissioner of finance determines that there will be a positive 
        unrestricted budgetary general fund balance at the close of the 
        biennium, the commissioner of finance must allocate money to the 
        budget reserve and cash flow account until the total amount in 
        the account equals five percent of total general fund 
        appropriations for the current biennium as established by the 
        most recent legislative session.  Beginning July 1, 1993, 
        forecast unrestricted budgetary general fund balances are first 
        appropriated to restore the budget reserve and cash flow account 
        to $500,000,000 and then to reduce the property tax levy 
        recognition percent under section 121.904, subdivision 4a, to 
        zero before money is allocated to the budget reserve and cash 
        flow account under the preceding sentence.  $180,000,000 of the 
        budget reserve and cash flow account shall be dedicated to 
        elementary and secondary education. 
           The amounts necessary to meet the requirements of this 
        section are appropriated from the general fund. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, 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 sections 124.2721, subdivision 3; 
        124.575, subdivision 3; and section 124.914, subdivision 1; 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 May, 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 an amount equal to the levy 
        recognized as revenue in June of the prior year plus 50.0 37.4 
        percent for fiscal year 1994 and thereafter 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) 50.0 37.4 percent for fiscal year 1994 and thereafter 
        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 
        reserved fund balance accounts for unemployment insurance and 
        bus purchases; 
           (ii) statutory operating debt pursuant to section 124.914, 
        subdivision 1, and Laws 1976, chapter 20, section 4; 
           (iii) retirement and severance pay pursuant to sections 
        122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
        124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
        1975, chapter 261, section 4; 
           (iv) amounts levied for bonds issued and interest thereon, 
        amounts levied for debt service loans and capital loans, amounts 
        levied for down payments under section 124.82, subdivision 3, 
        and amounts levied pursuant to section 136C.411; and 
           (v) amounts levied under section 124.755.  
           (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. 3.  Minnesota Statutes 1993 Supplement, section 
        121.904, subdivision 4c, is amended to read: 
           Subd. 4c.  [PROPERTY TAX SHIFT REDUCTION.] (a) Money made 
        available appropriated under section 16A.152, subdivision 2, 
        must be used to reduce the levy recognition percent specified in 
        subdivision 4a, clauses (b)(2) and (b)(3), for taxes payable in 
        the succeeding calendar year.  
           (b) The levy recognition percent shall equal the result of 
        the following computation:  the current levy recognition 
        percent, times the ratio of 
           (1) the statewide total amount of levy recognized in June 
        of the year in which the taxes are payable pursuant to 
        subdivision 4a, clause (b), excluding those levies that are 
        shifted for revenue recognition but are not included in the 
        computation of the adjustment to aids under section 124.155, 
        subdivision 1, reduced by the difference between the amount of 
        money made available appropriated under section 16A.152, 
        subdivision 2, and the amount required for the adjustment 
        payment under clause (d), to 
           (2) the statewide total amount of the levy recognized in 
        June of the year in which the taxes are payable pursuant to 
        subdivision 4a, clause (b), excluding those levies that are 
        shifted for revenue recognition but are not included in the 
        computation of the adjustment to aids under section 124.155, 
        subdivision 1.  
           The result shall be rounded up to the nearest whole 
        one-tenth of a percent.  However, in no case shall the levy 
        recognition percent be reduced below zero or increased above the 
        current levy recognition percent.  
           (c) The commissioner of finance must certify to the 
        commissioner of education the levy recognition percent computed 
        under this subdivision by January 5 of each year.  The 
        commissioner of education must notify school districts of a 
        change in the levy recognition percent by January 15. 
           (d) For fiscal years 1994 and 1995, when the levy 
        recognition percent is reduced as provided in this subdivision, 
        a special adjustment payment shall be made to each school 
        district with an operating referendum levy that received an aid 
        reduction under Laws 1991, chapter 265, article 1, section 31, 
        or Laws 1992, chapter 499, article 1, section 22.  The special 
        adjustment payment shall be in addition to the additional 
        payments required because of the reduction pursuant to this 
        subdivision of the levy recognition percent.  The amount of the 
        special adjustment payment shall be computed by the commissioner 
        of education such that any remaining portion of the aid 
        reduction these districts received that has not been repaid is 
        repaid on a proportionate basis as the levy recognition percent 
        is reduced from 50 percent to 31 percent.  The special 
        adjustment payment must be included in the state aid payments to 
        school districts according to the schedule specified in section 
        124.195, subdivision 3.  An additional adjustment shall be made 
        on June 30, 1995, for the final payment otherwise due July 1, 
        1995, under Minnesota Statutes 1992, section 136C.36. 
           (e) The commissioner of finance shall transfer from the 
        general fund to the education aids appropriations specified by 
        the commissioner of education, the amounts needed to finance the 
        additional payments required because of the reduction pursuant 
        to this subdivision of the levy recognition percent.  Payments 
        to a school district of additional state aids resulting from a 
        reduction in the levy recognition percent must be included in 
        the cash metering of payments made according to section 124.195 
        after January 15, and must be paid in a manner consistent with 
        the percent specified in that section. 
           Sec. 4.  Minnesota Statutes 1992, section 121.904, 
        subdivision 4e, is amended to read: 
           Subd. 4e.  [COOPERATION LEVY RECOGNITION.] (a) A 
        cooperative district is a district or cooperative that receives 
        revenue according to section 124.2721 or 124.575.  
           (b) In June of each year, the cooperative district shall 
        recognize as revenue, in the fund for which the levy was made, 
        the lesser of:  
           (1) the sum of the state aids and credits enumerated in 
        section 124.155, subdivision 2, that are for the fiscal year 
        payable in that fiscal year plus an amount equal to the levy 
        recognized as revenue in June of the prior year; or 
           (2) 50.0 37.4 percent for fiscal year 1994 of the 
        difference between 
           (i) the sum of the amount of levies certified in the prior 
        year according to sections 124.2721, subdivision 3, and 124.575, 
        subdivision 3; and 
           (ii) the amount of homestead and agricultural credit aid 
        paid to the cooperative unit according to section 273.1392 for 
        the fiscal year to which the levy is attributable.  
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        124.155, subdivision 2, is amended to read: 
           Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
        subdivision 1 shall be used to adjust the following state aids 
        and credits in the order listed: 
           (1) general education aid authorized in sections 124A.23 
        and 124B.20; 
           (2) secondary vocational aid authorized in section 124.573; 
           (3) special education aid authorized in section 124.32; 
           (4) secondary vocational aid for children with a disability 
        authorized in section 124.574; 
           (5) aid for pupils of limited English proficiency 
        authorized in section 124.273; 
           (6) transportation aid authorized in section 124.225; 
           (7) community education programs aid authorized in section 
        124.2713; 
           (8) adult education aid authorized in section 124.26; 
           (9) early childhood family education aid authorized in 
        section 124.2711; 
           (10) capital expenditure aid authorized in sections 
        124.243, 124.244, and 124.83; 
           (11) secondary vocational cooperative aid according to 
        section 124.575 school district cooperation aid authorized in 
        section 124.2727; 
           (12) assurance of mastery aid according to section 124.311; 
           (13) individual learning and development aid according to 
        section 124.331; 
           (14) homestead credit under section 273.13 for taxes 
        payable in 1989 and additional transition credit under section 
        273.1398, subdivision 5, for taxes payable in 1990 and 
        thereafter; 
           (15) agricultural credit under section 273.132 for taxes 
        payable in 1989 and additional transition credit under section 
        273.1398, subdivision 5, for taxes payable in 1990 and 
        thereafter; 
           (16) homestead and agricultural credit aid and, disparity 
        reduction credit and aid authorized in, and changes to credits 
        for prior year adjustments according to section 
        273.1398, subdivision subdivisions 2, 3, 4, and 7; 
           (17) (14) attached machinery aid authorized in section 
        273.138, subdivision 3; and 
           (18) (15) alternative delivery aid authorized in section 
        124.322. 
           (b) The commissioner of education shall schedule the timing 
        of the adjustments to state aids and credits specified in 
        subdivision 1, as close to the end of the fiscal year as 
        possible. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, 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 according to 
        this subdivision.  
           (a) A prekindergarten pupil with a disability who is 
        enrolled for the entire fiscal year in a program approved by the 
        commissioner and has an individual education plan that requires 
        up to 437 hours of assessment and education services in the 
        fiscal year is counted as one-half of a pupil unit.  If the plan 
        requires more than 437 hours of assessment and education 
        services, the pupil is counted as the ratio of the number of 
        hours of assessment and education service to 875, but not more 
        than one. 
           (b) A prekindergarten pupil with a disability who is 
        enrolled for less than the entire fiscal 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 fiscal 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.  
           (d) A kindergarten pupil with a disability who is enrolled 
        in a program approved by the commissioner is counted as the 
        ratio of the number of hours of assessment and education 
        services required in the fiscal year by the pupil's individual 
        education program plan to 875, but not more than one. 
           (e) A kindergarten pupil who is not included in paragraph 
        (d) is counted as one-half .515 of a pupil unit for fiscal year 
        1994 and .53 of a pupil unit for fiscal year 1995 and thereafter.
           (f) A pupil who is in any of grades 1 to 6 is counted as 
        1.03 pupil units for fiscal year 1994 and 1.06 pupil units for 
        fiscal year 1995 and thereafter. 
           (g) A pupil who is in any of grades 7 to 12 is counted as 
        1.3 pupil units.  
           (h) A pupil who is in the post-secondary enrollment options 
        program is counted as 1.3 pupil units. 
           Sec. 7.  Minnesota Statutes 1992, section 124.195, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
        of education shall pay to a school district on the dates 
        indicated an amount computed as follows:  the cumulative amount 
        guaranteed minus the sum of (a) the district's other district 
        receipts through the current payment, and (b) the aid and credit 
        payments through the immediately preceding payment.  For 
        purposes of this computation, the payment dates and the 
        cumulative disbursement percentages are as follows:  
                                 Payment date               Percentage 
        Payment 1    July 15:                                   2.25
        Payment 2    July 30:                                   4.50 
        Payment 3    August 15:                                 6.75 
        the greater of (a) the final adjustment for the prior fiscal year
        for the state paid property tax credits established in section
        273.1392, or (b) the amount needed to provide 6.75 percent
        Payment 4    August 30:                                 9.0 
        Payment 5    September 15:  the greater of (a) one-half of the
                     final adjustment for the prior fiscal year
                     for the state paid  property tax credits
                     established in section 273.1392, or (b) the
                     amount needed to provide 12.75 percent 
                                                              12.75
        Payment 6    September 30:  the greater of (a) one-half of
                     the final adjustment for the prior fiscal
                     year for the state paid property tax credits
                     established in section 273.1392, or (b) the
                     amount needed to provide 16.5 percent
                                                              16.50
        Payment 7    October 15:  the greater of (a) one-half of
                     the final adjustment for the prior fiscal year
                     for all aid entitlements except state paid
                     property tax credits, or (b) the amount needed to
                     provide 20.75 percent
        Payment 8    October 30:  the greater of (a) one-half of the
                     final adjustment for the prior fiscal year for all
                     aid entitlements except state paid property
                     tax credits, or (b) the amount needed
                     to provide 25.0 percent
        Payment 9    November 15:                               31.0
        Payment 10   November 30:                               37.0
        Payment 11   December 15:                               40.0
        Payment 12   December 30:                               43.0
        Payment 13   January 15:                                47.25
        Payment 14   January 30:                                51.5
        Payment 15   February 15:                               56.0
        Payment 16   February 28:                               60.5
        Payment 17   March 15:                                  65.25
        Payment 18   March 30:                                  70.0
        Payment 19   April 15:                                  73.0
        Payment 20   April 30:                                  79.0 
        Payment 21   May 15:                                    82.0 
        Payment 22   May 30:                                    90.0 
        Payment 23   June 20:                                  100.0
           Sec. 8.  Minnesota Statutes 1992, section 124.195, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [APPEAL.] The commissioner in consultation with 
        the commissioner of finance may revise the payment dates and 
        percentages in subdivision 3 for a district if it is determined 
        that there is an emergency or there are serious cash flow 
        problems in the district that cannot be resolved by issuing 
        warrants or other forms of indebtedness or if the commissioner 
        determines that excessive short-term borrowing costs will be 
        incurred by a district, because of the increase in the levy 
        recognition percentage from 37 percent to 50 percent according 
        to section 121.904, subdivisions 4a and 4e, and the district can 
        document substantial harm to instructional programs due to these 
        costs.  The commissioner shall establish a process and criteria 
        for school districts to appeal the payment dates and percentages 
        established in subdivision 3. 
           Sec. 9.  Minnesota Statutes 1992, section 124.195, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [CASH FLOW ADJUSTMENT.] During each year in 
        which the cash flow low points for August, September, and 
        October estimated by the commissioner of finance for invested 
        treasurer's cash exceeds $360,000,000, the commissioner of 
        education shall increase the cumulative disbursement percentages 
        established in subdivision 3 to the following amounts 
        Payment 3   August 15:                         12.75 percent
        Payment 4   August 30:                         15.00 percent
        Payment 5   September 15:                      17.25 percent
        Payment 6   September 30:                      19.50 percent
        Payment 7   October 15:                        21.75 percent
           Sec. 10.  Minnesota Statutes 1992, section 124.195, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FINAL ADJUSTMENT PAYMENT.] For all aids and 
        credits paid according to subdivision 10, the final adjustment 
        payment shall include the amounts necessary to pay the 
        district's full aid entitlement for the prior year based on 
        actual data.  This payment shall be used to correct all 
        estimates used for the payment schedule in subdivision 3.  The 
        payment shall be made in two installments, during September or 
        October, as specified in subdivision 3.  In the event actual 
        data are not available, the final adjustment payment may be 
        computed based on estimated data.  A corrected final adjustment 
        payment shall be made when actual data are available. 
           Sec. 11.  Minnesota Statutes 1992, section 124.2725, 
        subdivision 16, is amended to read: 
           Subd. 16.  [EXCLUSION FROM FUND BALANCE.] Revenue received 
        by a district under this section for each year of cooperation 
        and the first three years of combination shall be excluded from 
        the net unreserved operating fund balance, for the purposes 
        of section sections 124A.03, subdivision 3b, paragraph (c), and 
        124A.26.  
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        124.961, is amended to read: 
           124.961 [DEBT SERVICE APPROPRIATION.] 
           (a) $6,000,000 is appropriated in fiscal year 1993 from the 
        general fund to the commissioner of education for payment of 
        debt service equalization aid under section 124.95.  $17,000,000 
        in fiscal year 1994 and, $26,000,000 in fiscal year 1995, and 
        $31,600,000 in fiscal year 1996 and each year thereafter is 
        appropriated from the general fund to the commissioner of 
        education for payment of debt service equalization aid under 
        section 124.95.  The 1994 appropriation includes $3,000,000 for 
        1993 and $14,000,000 for 1994. 
           (b) The appropriations in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           Sec. 13.  Minnesota Statutes 1992, section 124A.02, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [REFERENDUM MARKET VALUE.] "Referendum market 
        value" means the market value of all taxable property, except 
        that any class of property, or any portion of a class of 
        property, with a class rate of less than one percent under 
        section 273.13 shall have a referendum market value equal to its 
        net tax capacity multiplied by 100. 
           Sec. 14.  Minnesota Statutes 1992, section 124A.02, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [NET UNAPPROPRIATED OPERATING FUND 
        BALANCE.] "Net unappropriated operating fund balance" means the 
        sum of the fund balances in the general, transportation, food 
        service, and community service funds minus the balances reserved 
        for statutory operating debt reduction, bus purchase, severance 
        pay, taconite, unemployment compensation, maintenance levy 
        reduction, and encumbrances, computed as of June 30 each year. 
           Sec. 15.  Minnesota Statutes 1993 Supplement, section 
        124A.029, subdivision 4, is amended to read: 
           Subd. 4.  [PER PUPIL REVENUE OPTION.] A district may, by 
        school board resolution, request that the department convert the 
        levy authority under section 124.912, subdivisions 2 and 3, or 
        its current referendum revenue, excluding authority based on a 
        dollar amount, authorized before July 1, 1993, to an allowance 
        per pupil.  The district must adopt a resolution and submit a 
        copy of the resolution to the department by July 1, 1993.  The 
        department shall convert a district's revenue for fiscal year 
        1995 and later years as follows:  the revenue allowance equals 
        the amount determined by dividing the district's maximum revenue 
        under section 124A.03 or 124.912, subdivisions 2 and 3, for 
        fiscal year 1994 by the district's 1993-1994 actual pupil 
        units.  A district's maximum revenue for all later years for 
        which the revenue is authorized equals the revenue allowance 
        times the district's actual pupil units for that year.  If a 
        district has referendum authority under section 124A.03 and levy 
        authority under section 124.912, subdivisions 2 and 3, and the 
        district requests that each be converted, the department shall 
        convert separate revenue allowances for each.  However, if a 
        district's referendum revenue is limited to a dollar amount, the 
        maximum revenue under section 124A.03 must not exceed that 
        dollar amount.  If the referendum authority of a district is 
        converted according to this subdivision, the authority expires 
        June 30, 1997, unless it is scheduled to expire sooner and the 
        question on the referendum ballot did not provide for an 
        expiration date, the authority shall expire according to section 
        124A.0311. 
           Sec. 16.  Minnesota Statutes 1993 Supplement, section 
        124A.03, subdivision 1c, is amended to read: 
           Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] (a) 
        Notwithstanding subdivision 1b, a district's referendum 
        allowance must not exceed the greater of:  
           (1) the district's referendum allowance for fiscal year 
        1994; or 
           (2) 25 percent of the formula allowance for fiscal year 
        1995 and later.  
           (b) The allowance calculated in paragraph (a) must be 
        reduced by the amount of the referendum allowance reduction 
        computed in subdivision 3b. 
           Sec. 17.  Minnesota Statutes 1993 Supplement, section 
        124A.03, subdivision 2, is amended to read: 
           Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
        by section 124A.22, subdivision 1, may be increased in the 
        amount approved by the voters of the district at a referendum 
        called for the purpose.  The referendum may be called by the 
        school board or shall be called by the school board upon written 
        petition of qualified voters of the district.  The referendum 
        shall be conducted during the calendar year before the increased 
        levy authority, if approved, first becomes payable.  Only one 
        election to approve an increase may be held in a calendar year.  
        Unless the referendum is conducted by mail under paragraph (g), 
        the referendum must be held on the first Tuesday after the first 
        Monday in November.  The ballot shall state the maximum amount 
        of the increased revenue per actual pupil unit, the estimated 
        referendum tax rate as a percentage of market value in the first 
        year it is to be levied, and that the revenue shall be used to 
        finance school operations.  The ballot may state that existing 
        referendum levy authority is expiring.  In this case, the ballot 
        may also compare the proposed levy authority to the existing 
        expiring levy authority, and express the proposed increase as 
        the amount, if any, over the expiring referendum levy 
        authority.  The ballot shall designate the specific number of 
        years, not to exceed five ten, for which the referendum 
        authorization shall apply.  The ballot may contain a textual 
        portion with the information required in this subdivision and a 
        question stating substantially the following:  
           "Shall the increase in the revenue proposed by (petition 
        to) the board of ........., School District No. .., be approved?"
           If approved, an amount equal to the approved revenue per 
        actual pupil unit times the actual pupil units for the school 
        year beginning in the year after the levy is certified shall be 
        authorized for certification for the number of years approved, 
        if applicable, or until revoked or reduced by the voters of the 
        district at a subsequent referendum. 
           (b) The school board shall prepare and deliver by first 
        class mail at least 15 days but no more than 30 days prior to 
        the day of the referendum to each taxpayer a notice of the 
        referendum and the proposed revenue increase.  The school board 
        need not mail more than one notice to any taxpayer.  For the 
        purpose of giving mailed notice under this subdivision, owners 
        shall be those shown to be owners on the records of the county 
        auditor or, in any county where tax statements are mailed by the 
        county treasurer, on the records of the county treasurer.  Every 
        property owner whose name does not appear on the records of the 
        county auditor or the county treasurer shall be deemed to have 
        waived this mailed notice unless the owner has requested in 
        writing that the county auditor or county treasurer, as the case 
        may be, include the name on the records for this purpose.  The 
        notice must project the anticipated amount of tax increase in 
        annual dollars and annual percentage for typical residential 
        homesteads, agricultural homesteads, apartments, and 
        commercial-industrial property within the school district. 
           The notice for a referendum may state that an existing 
        referendum levy is expiring and project the anticipated amount 
        of increase over the existing referendum levy, if any, in annual 
        dollars and annual percentage for typical residential 
        homesteads, agricultural homesteads, apartments, and 
        commercial-industrial property within the school district. 
           The notice must include the following statement:  "Passage 
        of this referendum will result in an increase in your property 
        taxes." 
           (c) A referendum on the question of revoking or reducing 
        the increased revenue amount authorized pursuant to paragraph 
        (a) may be called by the school board and shall be called by the 
        school board upon the written petition of qualified voters of 
        the district.  A referendum to revoke or reduce the levy amount 
        must be based upon the dollar amount, local tax rate, or amount 
        per actual pupil unit, that was stated to be the basis for the 
        initial authorization.  Revenue approved by the voters of the 
        district pursuant to paragraph (a) must be received at least 
        once before it is subject to a referendum on its revocation or 
        reduction for subsequent years.  Only one revocation or 
        reduction referendum may be held to revoke or reduce referendum 
        revenue for any specific year and for years thereafter. 
           (d) A petition authorized by paragraph (a) or (c) shall be 
        effective if signed by a number of qualified voters in excess of 
        15 percent of the registered voters of the school district on 
        the day the petition is filed with the school board.  A 
        referendum invoked by petition shall be held on the date 
        specified in paragraph (a). 
           (e) The approval of 50 percent plus one of those voting on 
        the question is required to pass a referendum authorized by this 
        subdivision. 
           (f) At least 15 days prior to the day of the referendum, 
        the district shall submit a copy of the notice required under 
        paragraph (b) to the commissioner of education.  Within 15 days 
        after the results of the referendum have been certified by the 
        school board, or in the case of a recount, the certification of 
        the results of the recount by the canvassing board, the district 
        shall notify the commissioner of education of the results of the 
        referendum. 
           (g) Any referendum under this section held on a day other 
        than the first Tuesday after the first Monday in November must 
        be conducted by mail in accordance with section 204B.46.  
        Notwithstanding paragraph (b) to the contrary, in the case of a 
        referendum conducted by mail under this paragraph, the notice 
        required by paragraph (b) shall be prepared and delivered by 
        first class mail at least 20 days before the referendum. 
           Sec. 18.  Minnesota Statutes 1992, section 124A.03, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
        Notwithstanding the provisions of subdivision 2, a school 
        referendum levy approved after November 1, 1992, for taxes 
        payable in 1993 and thereafter, shall be levied against the 
        referendum market value of all taxable property as defined in 
        section 124A.02, subdivision 3b.  Any referendum levy amount 
        subject to the requirements of this subdivision shall be 
        certified separately to the county auditor under section 275.07. 
           All other provisions of subdivision 2 that do not conflict 
        with this subdivision shall apply to referendum levies under 
        this subdivision.  
           Sec. 19.  Minnesota Statutes 1993 Supplement, section 
        124A.03, subdivision 3b, is amended to read: 
           Subd. 3b.  [REFERENDUM ALLOWANCE REDUCTION.] A district's 
        referendum allowance under subdivision 1c is reduced by the 
        amounts calculated in paragraphs (a), (b), and (c), and (d). 
           (a) The referendum allowance reduction equals the amount by 
        which a district's supplemental revenue reduction exceeds the 
        district's supplemental revenue allowance for fiscal year 1993. 
           (b) Notwithstanding paragraph (a), if a district's initial 
        referendum allowance is less than ten percent of the formula 
        allowance for that year, the reduction equals the lesser of (1) 
        an amount equal to $100, or (2) the amount calculated in 
        paragraph (a). 
           (c) Notwithstanding paragraph (a) or (b), a school 
        district's referendum allowance reduction equals (1) an amount 
        equal to $100, times (2) one minus the ratio of 20 percent of 
        the formula allowance minus the district's initial referendum 
        allowance limit to 20 percent of the formula allowance for that 
        year if: 
           (i) the district's adjusted net tax capacity for assessment 
        year 1992 per actual pupil unit for fiscal year 1995 is less 
        than $3,000; 
           (ii) the district's net unappropriated operating fund 
        balance as of June 30, 1993, divided by the actual pupil units 
        for fiscal year 1995 is less than $200; 
           (iii) the district's supplemental revenue allowance for 
        fiscal year 1993 is equal to zero; and 
           (iv) the district's initial referendum revenue authority 
        for the current year divided by the district's net tax capacity 
        for assessment year 1992 is greater than ten percent. 
           (d) Notwithstanding paragraph (a), (b), or (c), the 
        referendum revenue reduction for a newly reorganized district is 
        computed as follows: 
           (1) for a newly reorganized district created effective July 
        1, 1994, the referendum revenue reduction equals the lesser of 
        the amount calculated for the combined district under paragraph 
        (a), (b), or (c), or the sum of the amounts by which each of the 
        reorganizing district's supplemental revenue reduction exceeds 
        its respective supplemental revenue allowances calculated for 
        the districts as if they were still in existence for fiscal year 
        1995; or 
           (2) for a newly reorganized district created after July 1, 
        1994, the referendum revenue reduction equals the lesser of the 
        amount calculated for the combined district under paragraph (a), 
        (b), or (c), or the sum of the amounts by which each of the 
        reorganizing district's supplemental revenue reduction exceeds 
        its respective supplemental revenue allowances calculated for 
        the year preceding the year of reorganization. 
           Sec. 20.  [124A.0311] [REFERENDUM AUTHORITY.] 
           Subdivision 1.  [EXPIRATION.] Unless scheduled to expire 
        sooner, a referendum levy authorized under section 124A.03 
        expires July 1, 2000.  This subdivision does not apply to a 
        referendum levy that is authorized for ten or fewer years and 
        that is levied against the referendum market value of all 
        taxable property located within the school district. 
           Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Prior to June 
        1, 1997, by June 1 of each year, a school board may, by 
        resolution of a majority of its board, convert any remaining 
        portion of its referendum authority under section 124A.03, 
        subdivision 2, that is authorized to be levied against net tax 
        capacity to referendum authority that is authorized to be levied 
        against the referendum market value of all taxable property 
        located within the school district.  At the option of the school 
        board, any remaining portion of its referendum authority may be 
        converted in two or more parts at separate times.  The board 
        must notify the commissioner of education of the amount of 
        referendum authority that has been converted from net tax 
        capacity to referendum market value, if any, by June 15, of each 
        year.  The maximum length of a referendum converted under this 
        paragraph is ten years. 
           (b) For referendum levy amounts converted between June 1, 
        1997, and June 1, 1998, all other conditions of this subdivision 
        apply except that the maximum length of the referendum is 
        limited to seven years. 
           (c) For referendum levy amounts converted between June 1, 
        1998, and June 1, 1999, all other conditions of this subdivision 
        apply except that the maximum length of the referendum is 
        limited to six years. 
           (d) For referendum levy amounts converted between June 1, 
        1999, and June 1, 2000, all other conditions of this subdivision 
        apply except that the maximum length of the referendum is 
        limited to five years. 
           Subd. 3.  [ALTERNATIVE CONVERSION.] A school district that 
        has a referendum that is levied against net tax capacity that 
        expires before taxes payable in 1998 may convert its referendum 
        authority according to this subdivision.  In the payable year 
        prior to the year of expiration, the school board may authorize 
        a referendum under section 124A.03.  Notwithstanding any other 
        law to the contrary, the district may propose, and if approved 
        by its electors, have its referendum authority reauthorized in 
        part on tax capacity and in part on market value according to a 
        schedule adopted by resolution of the school board for years 
        prior to taxes payable in 2001, provided that, for taxes payable 
        in 2001 and later, the full amount of referendum authority is 
        levied against market value.  If the full amount of the 
        referendum is reauthorized on market value prior to taxes 
        payable in 1998, the referendum may extend for 10 years.  If the 
        referendum becomes fully reauthorized on market value for a 
        later year, the referendum shall not extend for more than the 
        maximum number of years allowed under subdivision 2. 
           Subd. 4.  [REFERENDUM.] The school board must prepare and 
        publish in the official legal newspaper of the school district a 
        notice of the public meeting on the district's intent to convert 
        any portion of its referendum levy to market value not less than 
        30 days before the scheduled date of the meeting.  The 
        resolution converting a portion of the district's referendum 
        levy to referendum market value becomes final unless within 30 
        days after the meeting where the resolution was adopted a 
        petition requesting an election signed by a number of people 
        residing in the district equal to 15 percent of the number of 
        people who voted in the last general election in the school 
        district is filed with the recording officer.  If a petition is 
        filed, then the school board resolution has no effect and the 
        amount of referendum revenue authority specified in the 
        resolution cancels for taxes payable in the following year and 
        thereafter.  The school board shall schedule a referendum under 
        section 124A.03, subdivision 2. 
           Sec. 21.  Minnesota Statutes 1992, section 124A.22, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
        following definitions apply to this subdivision:  
           (1) "Public employer" means:  
           (i) a school district; and 
           (ii) a public employer, as defined by section 179A.03, 
        subdivision 15, other than a school district that (i) negotiates 
        a contract under chapter 179A with teachers, and (ii) is 
        established by, receives state money, or levies under chapters 
        120 to 129, or 136D, or 268A, or section 136C.411. 
           (2) "Teacher" means a person, other than a superintendent 
        or assistant superintendent, principal, assistant principal, or 
        a supervisor or confidential employee who occupies a position 
        for which the person must be licensed by the board of teaching, 
        state board of education, or state board of technical colleges. 
           (b) Notwithstanding any law to the contrary, a public 
        employer and the exclusive representative of the teachers shall 
        both sign a collective bargaining agreement on or before January 
        15 of an even-numbered calendar year.  If a collective 
        bargaining agreement is not signed by that date, state aid paid 
        to the public employer for that fiscal year shall be reduced.  
        However, state aid shall not be reduced if: 
           (1) a public employer and the exclusive representative of 
        the teachers have submitted all unresolved contract items to 
        interest arbitration according to section 179A.16 before 
        December 31 of an odd-numbered year and filed required final 
        positions on all unresolved items with the commissioner of 
        mediation services before January 15 of an even-numbered year; 
        and 
           (2) the arbitration panel has issued its decision within 60 
        days after the date the final positions were filed. 
           (c)(1) For a district that reorganizes according to section 
        122.22 or, 122.23, or 122.241 to 122.248 effective July 1 of an 
        odd-numbered year, state aid shall not be reduced according to 
        this subdivision if the school board and the exclusive 
        representative of the teachers both sign a collective bargaining 
        agreement on or before the March 15 following the effective date 
        of reorganization.  This extension is available only in the 
        calendar year following the effective date of reorganization. 
           (2) For a district that jointly negotiates a contract prior 
        to the effective date of reorganization under section 122.22, 
        122.23, or 122.241 to 122.248 that, for the first time, includes 
        teachers in all districts to be reorganized, state aid shall not 
        be reduced according to this subdivision if the school board and 
        the exclusive representative of the teachers sign a collective 
        bargaining agreement on or before the March 15 following the 
        expiration of the teacher contracts in each district involved in 
        the joint negotiation. 
           (3) Only one extension of the contract deadline is 
        available to a district under this paragraph. 
           (d) The reduction shall equal $25 times the number of 
        actual pupil units:  
           (1) for a school district, that are in the district during 
        that fiscal year; or 
           (2) for a public employer other than a school district, 
        that are in programs provided by the employer during the 
        preceding fiscal year. 
           The department of education shall determine the number of 
        full-time equivalent actual pupil units in the programs.  The 
        department of education shall reduce general education aid; if 
        general education aid is insufficient or not paid, the 
        department shall reduce other state aids. 
           (e) Reductions from aid to school districts and public 
        employers other than school districts shall be returned to the 
        general fund. 
           Sec. 22.  Minnesota Statutes 1993 Supplement, section 
        124A.22, subdivision 5, is amended to read: 
           Subd. 5.  [DEFINITIONS.] The definitions in this 
        subdivision apply only to subdivisions 6 and 6a.  
           (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, and the school is 
        at least 19 miles from the next nearest school, 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 7 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 7 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.  For a district that does not operate a high 
        school and is less than 19 miles from the nearest operating high 
        school, the attendance area equals zero. 
           (d) "Isolation index" for a high school means the square 
        root of one-half 55 percent of the attendance area plus the 
        distance in miles, according to the usually traveled routes, 
        between the high school and the nearest high school.  For a 
        district in which there is located land defined in section 
        84A.01, 84A.20, or 84A.31, the distance in miles is the sum of: 
           (1) the square root of one-half of the attendance area; and 
           (2) the distance from the border of the district to 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.  
           (f) "Qualifying elementary school" means an elementary 
        school that is located 19 miles or more from the nearest 
        elementary school or from the nearest elementary school within 
        the district and, in either case, has an elementary average 
        daily membership of an average of 20 or fewer per grade. 
           (g) "Elementary average daily membership" means, for a 
        district that has only one elementary school, the average daily 
        membership of resident pupils in kindergarten through grade 6.  
        For a district that has more than one elementary school, 
        "average daily membership" for each school means the average 
        daily membership of kindergarten through grade 6 multiplied by 
        the ratio of seven to the number of grades in the elementary 
        school.  For a building in a district where the nearest 
        elementary school is at least 65 miles distant, pupils served 
        shall be used to determine average daily membership. 
           Sec. 23.  Minnesota Statutes 1993 Supplement, section 
        124A.22, subdivision 6, is amended to read: 
           Subd. 6.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
        secondary 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 1.5 or the quotient obtained by 
        dividing the isolation index minus 23 by ten. 
           (b) A newly formed school district that is the result of 
        districts combining under the cooperation and combination 
        program or consolidating under section 122.23 shall receive 
        secondary sparsity revenue equal to the greater of:  (1) the 
        amount calculated under paragraph (a) for the combined district; 
        or (2) the sum of the amounts of secondary sparsity revenue the 
        former school districts had in the year prior to consolidation, 
        increased for any subsequent changes in the secondary sparsity 
        formula. 
           Sec. 24.  Minnesota Statutes 1993 Supplement, section 
        124A.22, subdivision 8, is amended to read: 
           Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
        supplemental revenue allowance for fiscal year 1994 and later 
        fiscal years equals the district's supplemental revenue for 
        fiscal year 1993 divided by the district's 1992-1993 actual 
        pupil units. 
           (b) A district's supplemental revenue allowance is reduced 
        for fiscal year 1995 and later according to subdivision 9. 
           (c) A district's supplemental revenue equals the 
        supplemental revenue allowance, if any, times its actual pupil 
        units for that year.  
           (d) A school district may cancel its supplemental revenue 
        by notifying the commissioner of education prior to June 30, 
        1994.  A school district that is reorganizing under section 
        122.22, 122.23, or 122.241 may cancel its supplemental revenue 
        by notifying the commissioner of education prior to July 1 of 
        the year of the reorganization.  If a district cancels its 
        supplemental revenue according to this paragraph, its 
        supplemental revenue allowance for fiscal year 1993 for purposes 
        of subdivision 9 and section 124A.03, subdivision 3b, equals 
        zero. 
           Sec. 25.  Minnesota Statutes 1993 Supplement, section 
        124A.225, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] (a) Of a district's general 
        education revenue an amount equal to the sum of the number of 
        elementary pupil units pupils in average daily membership 
        defined in section 124.17, subdivision 1, clause (f) and 
        one-half of the number of kindergarten pupil units pupils in 
        average daily membership as defined in section 124.17, 
        subdivision 1, clause (e), times .03 for fiscal year 1994 and 
        .06 for fiscal year 1995 and thereafter times the formula 
        allowance must be reserved according to this section. 
           (b) For fiscal year 1995, a district must reserve an 
        additional amount equal to the greater of 
           (i) $0, or 
           (ii) $100 minus the sum of the reduction for supplemental 
        revenue under section 124A.22, subdivision 9, and the reduction 
        for referendum revenue under section 124A.03, subdivision 3b, 
        times the district's actual pupil units times the ratio of the 
        district's elementary average daily membership to the district's 
        average daily membership according to this section.  The revenue 
        must be placed in a learning and development reserved account 
        and may only be used according to this section. 
           (c) The ratio in paragraph (a) for fiscal year 1995 is 
        adjusted by adding an amount equal to the ratio of the 
        difference between the formula allowance for fiscal year 1995 
        minus 3,150 to 10,000. 
           Sec. 26.  Minnesota Statutes 1993 Supplement, section 
        124A.23, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
        commissioner shall establish the general education tax rate by 
        July 1 of each year for levies payable in the following year.  
        The general education tax capacity rate shall be a rate, rounded 
        up to the nearest tenth of a percent, that, when applied to the 
        adjusted net tax capacity for all districts, raises the amount 
        specified in this subdivision.  The general education tax rate 
        shall be the rate that raises $969,800,000 for fiscal year 1994, 
        $1,044,000,000 for fiscal year 1995 and $1,054,000,000 for 
        fiscal year 1996 and later fiscal years.  The general education 
        tax rate may not be changed due to changes or corrections made 
        to a district's adjusted net tax capacity after the tax rate has 
        been established.  
           Sec. 27.  Minnesota Statutes 1992, sections 124A.26, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [ALLOCATION AMONG ACCOUNTS.] The district must 
        apportion any fund balance reduction under this section among 
        all reserved and unreserved fund balance accounts included in 
        the net unappropriated operating fund balance in the proportion 
        that each account bears to the total. 
           Sec. 28.  Minnesota Statutes 1992, section 124A.28, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
        the concentration of children from low-income families in each 
        school building in the district when allocating compensatory 
        revenue. 
           Sec. 29.  Laws 1993, chapter 224, article 1, section 38, is 
        amended to read: 
           Sec. 38.  [TAX CREDIT ADJUSTMENT.] 
           Prior to the computation of homestead and agricultural aid 
        for taxes payable in 1994, the commissioner of revenue shall 
        reduce a school district's homestead and agricultural aid by an 
        amount equal to the homestead and agricultural aid for calendar 
        year 1993 times the ratio of referendum levy certified for 1993 
        to the certified unequalized levies for 1993.  The department of 
        education shall determine the change in referendum levies 
        payable in 1994 attributable to this section and the increase in 
        equalization under sections 8 and 9.  Notwithstanding any law to 
        the contrary, a district may recognize revenue an additional 
        amount as the levy certified in the prior calendar year equal to 
        one-half 37.4 percent for fiscal year 1994 and thereafter of the 
        levy reduction in the fiscal year the levy is certified and each 
        year thereafter.  No aids shall be reduced as a result of this 
        recognition. 
           Sec. 30.  Laws 1993, chapter 224, article 15, section 2, is 
        amended to read: 
           Sec. 2.  [DECLINING PUPIL UNIT AID.] 
           (a) For fiscal year 1994 only, a school district is 
        eligible for declining pupil unit aid equal to the greater of 
        zero or the result of the following computation: 
           (1) add 77 percent of the district's actual pupil units for 
        fiscal year 1994 and 23 percent of the district's actual pupil 
        units for fiscal year 1993; 
           (2) subtract from the amount calculated in clause (1) the 
        district's actual pupil units for fiscal year 1994; and 
           (3) multiply the amount determined in clause (2) by the 
        basic formula allowance for that year. 
           (b) The aid amount calculated under paragraph (a) is 
        available from the general education appropriation under article 
        1, section 41, subdivision 2, to the department of education for 
        payment of declining pupil unit aid. 
           (c) For the purposes of this section, pursuant to Minnesota 
        Statutes, section 124.17, subdivision 3, a pupil who is in 
        grades 1 to 6 is counted as 1.03 pupil units for fiscal year 
        1993. 
           Sec. 31.  Laws 1993, chapter 224, article 15, section 3, is 
        amended to read: 
           Sec. 3.  [FISCAL YEAR 1996 AND FISCAL YEAR 1997 
        APPROPRIATIONS.] 
           (a) The appropriations for the 1996-1997 biennium for 
        programs contained in this bill will be $2,770,488,000 for 
        fiscal year 1996 and $2,953,102,000 for fiscal year 1997, plus 
        or minus any adjustments due to variance in pupil forecasts, 
        levies or other factors generating entitlements for the general 
        revenue program established in Minnesota Statutes, section 
        124A.04.  These amounts will first be allocated to fully fund 
        the general revenue program.  Amounts remaining will be 
        allocated to other programs in proportion to the fiscal year 
        1995 appropriations or the entitlements generated by existing 
        law for those programs for each year, up to the amount of the 
        entitlement or the fiscal year 1995 appropriations.  Any amounts 
        remaining after allocation to these other programs may be 
        maintained in a reserve account pending recommendations of the 
        governor and legislature in the 1995 session. 
           (b) Of the fiscal year 1997 appropriation limit, 
        $35,000,000 is reallocated to the fiscal year 1996 appropriation 
        limit.  For fiscal year 1996, the allocations for special 
        education aid, capital expenditure health and safety aid, and 
        debt service equalization aid as determined according to 
        paragraph (a) are increased by $26,500,000, $3,700,000, and 
        $4,800,000 respectively. 
           Sec. 32.  [EXEMPTION TO CONTRACT DEADLINE; HAYFIELD.] 
           Notwithstanding Minnesota Statutes, section 124A.22, 
        subdivision 2a, independent school district No. 203, Hayfield, 
        is not subject to the contract penalty reduction in general 
        education revenue for fiscal year 1994. 
           Sec. 33.  [AID ADJUSTMENT.] 
           Notwithstanding Minnesota Statutes, section 124A.22, 
        subdivision 2a, paragraph (c), if: 
           (1) a district's fiscal year 1994 general education aid was 
        reduced under Minnesota Statutes 1992, section 124A.22, 
        subdivision 2a; 
           (2) the district jointly negotiates a contract prior to the 
        effective date of reorganization under Minnesota Statutes, 
        sections 122.22, 122.23, or 122.241 to 122.248 that, for the 
        first time, includes teachers in all districts to be 
        reorganized; and 
           (3) the school board and the exclusive representative of 
        the teachers sign a collective bargaining agreement on or before 
        May 15, 1994; 
        the district's general education aid shall be increased in the 
        amount of the reduction. 
           Sec. 34.  [ADJUSTMENTS.] 
           Notwithstanding Minnesota Statutes, section 124.14, any 
        excess appropriations for fiscal year 1993 not otherwise 
        allocated to special education aid programs, abatement aid, and 
        adult graduation aid under Minnesota Statutes, sections 124.214, 
        124.261, 124.273, 124.32, 124.321, 124.322, and 124.574 shall be 
        allocated to programs under Minnesota Statutes, section 124.261, 
        124.273, 124.32, 124.321, 124.322, and 124.574.  If the excess 
        that is allocated for fiscal year 1993 to any programs specified 
        in this section exceeds the deficiencies for that year, these 
        differences shall remain in those accounts and shall be used to 
        reduce deficiencies for fiscal year 1995 for programs under 
        Minnesota Statutes, sections 124.273, 124.32, 124.322, and 
        124.574.  Notwithstanding any law to the contrary, these amounts 
        shall be reallocated prior to the addition of any other aids 
        that may be available for that purpose. 
           Sec. 35.  [SUPPLEMENTAL REVENUE REDUCTION.] 
           For fiscal year 1995 only, if a district's ratio of 1992 
        adjusted net tax capacity divided by 1994-1995 actual pupil 
        units to the equalizing factor is less than or equal to .25, 
        then the difference under Minnesota Statutes, section 124A.22, 
        subdivision 9, clause (2), is equal to $50 for purposes of 
        computing the district's supplemental revenue under Minnesota 
        Statutes, section 124A.22, subdivision 8.  For purposes of 
        computing the referendum allowance reduction under Minnesota 
        Statutes, section 124A.03, subdivision 3b, the supplemental 
        revenue reduction shall be computed according to Minnesota 
        Statutes, section 124A.22, subdivision 9. 
           Sec. 36.  [PEQUOT LAKES; DELAY IN AID REPAYMENT.] 
           The department of education must allow independent school 
        district No. 186, Pequot Lakes, to repay over a five-year period 
        state aid overpayments for fiscal years 1991 and 1992 due to the 
        property tax revenue recognition shift.  Notwithstanding 
        Minnesota Statutes, section 124.155, subdivision 1, aids for 
        independent school district No. 186, Pequot Lakes, shall not be 
        adjusted for fiscal years 1991 and 1992 for pupils transferring 
        into the district under Minnesota Statutes, section 120.062. 
           Sec. 37.  [LEVY RECOGNITION ADJUSTMENT PAYMENT; TRANSFER OF 
        FUNDS.] 
           The commissioner of finance shall transfer from the general 
        fund to the education aids appropriations specified by the 
        commissioner of education or the state board defined in section 
        136C.03 the amounts needed to finance the adjustment to aids 
        required under Minnesota Statutes, section 124.155, resulting 
        from the reduction of the levy recognition percent in Minnesota 
        Statutes, section 121.904, subdivisions 4a and 4e, and the 
        additional payments required under Minnesota Statutes, section 
        121.904, subdivision 4c, paragraph (d).  This transfer of funds 
        is required to ensure that the property tax shift reduction for 
        fiscal year 1994 under Minnesota Statutes, section 16A.152, 
        subdivision 2, as certified by the commissioner of finance 
        according to Minnesota Statutes, section 121.904, subdivision 
        4c, paragraph (c), is funded for the amount certified. 
           Sec. 38.  [ADDITIONAL GENERAL EDUCATION AID; STAFF 
        DEVELOPMENT.] 
           For fiscal year 1995 only, additional basic general 
        education aid is $17.10 per actual pupil unit.  This amount is 
        added to the basic general education revenue in Minnesota 
        Statutes, section 124A.22, subdivision 2, only for the purpose 
        of computing additional basic general education aid.  The 
        additional aid shall not be included in the computation of any 
        other aid or levy.  The additional aid is not subject to the 
        levy equity provision in Minnesota Statutes, section 124A.24.  
        The additional general education aid in this section is not 
        included in the calculation of the general education aid 
        according to Minnesota Statutes, section 124A.032.  This 
        additional aid is intended to partially cover the increase in 
        fiscal year 1995 of revenue reserved for staff development 
        according to Minnesota Statutes, section 124A.29, subdivision 1. 
           Sec. 39.  [SAVINGS CLAUSE.] 
           (a) On or before July 1, 1999, a municipality, as defined 
        in Minnesota Statutes, section 469.174, subdivision 6, may by 
        resolution of its governing body designate an issue of 
        outstanding or proposed tax increment bonds as protected bonds.  
        Tax increment bonds which are general obligations and bonds 
        issued to reimburse a party for costs of a project and interest 
        thereon may not be designated as protected bonds.  For taxes 
        levied in 1999 and thereafter, the municipality shall levy a tax 
        on all taxable property within the municipality to pay or secure 
        the payment of principal and interest on protected bonds.  The 
        tax must be levied in an amount equal to the amount by which the 
        tax increment available to pay the protected bonds was reduced 
        as a result of the repeal set forth in section Laws 1992, 
        chapter 499, article 7, section 31.  For purposes of calculating 
        the amount of the tax increment reduction, the tax rate imposed 
        in 1998 by the school district in which the tax increment 
        financing district is located is assumed to apply, except that 
        the tax rate for the school district under section 469.177, 
        subdivision 1a, applies if the tax increment financing district 
        is subject to that provision.  The proceeds of the tax levied 
        under this section shall be treated as tax increment derived 
        from the tax increment financing district for all purposes under 
        sections 469.174 to 469.179, provided that the taxes must be 
        remitted to the municipality for deposit in its general fund to 
        the extent the taxes are not used to pay or secure payment of 
        the protected bonds. 
           (b) For purposes of making estimates prior to July 1, 1999, 
        of future collections of tax increment, the municipality may 
        disregard Laws 1992, chapter 499, article 7, section 31. 
           (c) An amendment or repeal of this section does not 
        constitute an impairment of any bonds issued before the 
        effective date of this section. 
           Sec. 40.  [GENERAL EDUCATION AID APPROPRIATION 
        ADJUSTMENTS.] 
           The appropriation for general and supplemental education 
        aid in Laws 1993, chapter 224, article 1, section 41, 
        subdivision 2, is adjusted by the amounts in paragraphs (a) and 
        (b). 
           (a) For fiscal year 1994:  $3,667,000 
           (b) For fiscal year 1995:  ($35,204,000) 
           Sec. 41.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal year designated. 
           Subd. 2.  [RICHFIELD LAND PURCHASE COMPENSATION.] For a 
        grant to independent school district No. 280, Richfield, to 
        compensate the district for the relocation of pupils due to the 
        purchase of homes by the metropolitan airports commission: 
            $500,000     .....     1995 
           Subd. 3.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
        independent school district No. 690, Warroad, to open and 
        operate the Angle Inlet School: 
            $50,000      .....     1995
           Subd. 4.  [ADDITIONAL GENERAL EDUCATION AID; STAFF 
        DEVELOPMENT.] For general education aid according to section 38: 
            $15,550,000     .....     1995
           Notwithstanding Minnesota Statutes, section 124.195, 
        subdivision 10, 100 percent of this appropriation must be paid 
        in fiscal year 1995. 
           Sec. 42.  [REPEALER.] 
           Laws 1993, chapter 224, article 1, section 37, is repealed. 
           Sec. 43.  [EFFECTIVE DATE.] 
           (a) Sections 21; 24; 30; 32; 33; 36; 40; and 41 are 
        effective the day following final enactment. 
           (b) Sections 6 and 25 are effective for fiscal year 1994 
        and thereafter. 
           (c) Section 18 is effective for taxes payable in 1995 and 
        later years. 
           (d) Section 1 is effective July 1, 1995. 
           (e) Sections 2 to 4; 29; and 37 are effective retroactive 
        to January 1, 1994, and apply to aid payments for fiscal years 
        1994 and later.  However, the levy recognition percent for taxes 
        payable in 1994 is set by this article at 37.4 percent, and 
        shall not be recomputed for taxes payable in 1994 under the 
        provisions of section 3, paragraph (b). 
           (f) Sections 11; 19; and 24 are effective for revenue for 
        the 1994-1995 school year and thereafter. 
                                   ARTICLE 2  
                                 TRANSPORTATION  
           Section 1.  Minnesota Statutes 1992, section 124.223, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] (a) 
        State transportation aid is authorized for 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 and from schools the resident pupils attend 
        according to a program approved by the commissioner of 
        education, or between the schools the resident pupils attend for 
        instructional classes; 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; transportation of 
        resident pupils to and from language immersion programs; 
        transportation of a pupil who is a custodial parent and that 
        pupil's child between the pupil's home and the child care 
        provider and between the provider and the school, if the home 
        and provider are within the attendance area of the school.  
        State transportation aid is not authorized for late 
        transportation home from school for pupils involved in after 
        school activities.  State transportation aid is not authorized 
        for summer program transportation except as provided in 
        subdivision 8. 
           (b) For the purposes of this subdivision, a district may 
        designate a licensed day care facility, respite care facility, 
        the residence of a relative, or the residence of a person chosen 
        by the pupil's parent or guardian 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. 
           (c) State transportation aid is authorized for 
        transportation to and from school of an elementary pupil who 
        moves during the school year within an area designated by the 
        district as a mobility zone, but only for the remainder of the 
        school year.  The attendance areas of schools in a mobility zone 
        must be contiguous.  To be in a mobility zone, a school must 
        meet both of the following requirements: 
           (1) more than 50 percent of the pupils enrolled in the 
        school are eligible for free or reduced school lunch; and 
           (2) the pupil withdrawal rate for the last year is more 
        than 12 percent. 
           (d) A pupil withdrawal rate is determined by dividing: 
           (1) the sum of the number of pupils who withdraw from the 
        school, during the school year, and the number of pupils 
        enrolled in the school as a result of transportation provided 
        under this paragraph, by 
           (2) the number of pupils enrolled in the school. 
           (e) The district may establish eligibility requirements for 
        individual pupils to receive transportation in the mobility zone.
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        124.225, subdivision 7e, is amended to read: 
           Subd. 7e.  [EXCESS NONREGULAR TRANSPORTATION REVENUE.] A 
        district's excess nonregular transportation revenue for 
        1992-1993 and later school years equals an amount equal to 80 
        percent of the difference between: 
           (1) the district's actual cost in the current year for 
        nonregular transportation services as defined for the current 
        year in subdivision 1, paragraph (c), and 
           (2) the product of the district's actual cost in the base 
        year for nonregular transportation services as defined for the 
        current year in subdivision 1, paragraph (c), times 1.30 the 
        nonregular transportation inflation factor for the current year, 
        times the ratio of the district's average daily membership for 
        the current year to the district's average daily membership for 
        the base year. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        124.226, subdivision 3a, is amended to read: 
           Subd. 3a.  [TRANSPORTATION LEVY EQUITY.] (a) If a 
        district's basic transportation levy for a fiscal year is 
        adjusted according to subdivision 3, an amount must be deducted 
        from the state payments that are authorized in chapter 273 and 
        that are receivable for the same fiscal year.  The amount of the 
        deduction equals the difference between:  
           (1) the district's transportation revenue under section 
        124.225, subdivision 7d; and 
           (2) the sum of the district's maximum basic transportation 
        levy under subdivision 1, the district's maximum nonregular levy 
        under subdivision 4, the district's maximum excess 
        transportation levy under subdivision 5, the district's 
        contracted services aid reduction under section 124.225, 
        subdivision 8k, and the amount of any reduction due to 
        insufficient appropriation under section 124.225, subdivision 8a.
           (b) Notwithstanding paragraph (a), for fiscal year 1995, 
        the amount of the deduction is one-fourth of the difference 
        between clauses (1) and (2); for fiscal year 1996, the amount of 
        the deduction is one-half of the difference between clauses (1) 
        and (2); and for fiscal year 1997, the amount of the deduction 
        is three-fourths of the difference between clauses (1) and (2).  
           (c) The amount of the deduction in any fiscal year must not 
        exceed the amount of state payments that are authorized in 
        chapter 273 and that are receivable for the same fiscal year in 
        the district's transportation fund. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        124.226, subdivision 9, is amended to read: 
           Subd. 9.  [LATE ACTIVITY BUSES.] (a) A school district may 
        levy an amount equal to the lesser of: 
           (1) the actual cost of late transportation home from 
        school, between schools within a district, or between schools in 
        one or more districts that have an agreement under sections 
        122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
        involved in after school activities for the school year 
        beginning in the year the levy is certified; or 
           (2) two percent of the sum of the district's regular 
        transportation revenue and the district's nonregular 
        transportation revenue for that school year according to section 
        124.225, subdivision 7d, paragraph (a). 
           (b) A district that levies under this section must provide 
        late transportation from school for students participating in 
        any academic-related activities provided by the district if 
        transportation is provided for students participating in 
        athletic activities. 
           (c) 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. 
           Sec. 5.  Minnesota Statutes 1992, section 260.181, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONSIDERATION OF REPORTS.] Before making a 
        disposition in a case, or terminating parental rights, or 
        appointing a guardian for a child the court may consider any 
        report or recommendation made by the county welfare board, 
        probation officer, licensed child placing agency, foster parent, 
        guardian ad litem, tribal representative, or other authorized 
        advocate for the child or child's family, a school district 
        concerning the effect on student transportation of placing a 
        child in a school district in which the child is not a resident, 
        or any other information deemed material by the court. 
           Sec. 6.  Laws 1993, chapter 224, article 2, section 15, 
        subdivision 2, as amended by Laws 1993, chapter 374, section 5, 
        is amended to read: 
           Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
        according to Minnesota Statutes, section 124.225: 
             $127,889,000 $127,955,000    .....     1994
             $141,658,000 $143,406,000    .....     1995
           The 1994 appropriation includes $18,327,000 for 1993 and 
        $109,562,000 $109,628,000 for 1994.  
           The 1995 appropriation includes $19,334,000 $19,345,000 for 
        1994 and $122,324,000 $124,061,000 for 1995. 
           Sec. 7.  [STAPLES TRANSPORTATION FUNDING.] 
           Notwithstanding Minnesota Statutes, section 124.225, or any 
        other law to the contrary, for fiscal year 1994, transportation 
        aid paid to independent school district No. 793, Staples, for 
        residents of independent school district No. 483, Motley, 
        transported under Minnesota Statutes, section 120.062, 
        subdivision 9, shall be computed using the regular 
        transportation allowance determined according to Minnesota 
        Statutes, section 124.225, for independent school district No. 
        483, Motley. 
           Sec. 8.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal years indicated. 
           Subd. 2.  [METRO DEAF SCHOOL AID.] For transportation aid 
        to independent school district No. 4005, Metro Deaf School: 
              $21,000      .......      1994 
              $68,000      .......      1995 
           Notwithstanding Minnesota Statutes, sections 120.064 and 
        124.248, or other law, the state shall pay transportation aid 
        for fiscal years 1994 and 1995 to independent school district 
        No. 4005, Metro Deaf School.  The state aid for each fiscal year 
        equals the district's actual cost for providing transportation 
        services approved by the commissioner of education. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 6 to 8 are effective the day following final 
        enactment. 
                                   ARTICLE 3 
                                SPECIAL PROGRAMS 
           Section 1.  Minnesota Statutes 1992, section 13.04, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [EDUCATION RECORDS; CHILD WITH A DISABILITY.] 
        Nothing in this chapter shall be construed as limiting the 
        frequency of inspection of the educational records of a child 
        with a disability by the child's parent or guardian or by the 
        child upon the child reaching the age of majority.  An agency or 
        institution may not charge a fee to search for or to retrieve 
        the educational records.  An agency or institution that receives 
        a request for copies of the educational records of a child with 
        a disability may charge a fee that reflects the costs of 
        reproducing the records except when to do so would impair the 
        ability of the child's parent or guardian, or the child who has 
        reached the age of majority, to exercise their right to inspect 
        and review those records. 
           Sec. 2.  Minnesota Statutes 1992, section 120.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
        DISABILITY.] Every district shall provide special instruction 
        and services, either within the district or in another district, 
        for children with a disability who are residents of the district 
        and who are disabled as set forth in section 
        120.03.  Notwithstanding any age limits in laws to the contrary, 
        special instruction and services must be provided from birth 
        until September 1 after the child with a disability becomes 21 
        22 years old but shall not extend beyond secondary school or its 
        equivalent, except as provided in section 126.22, subdivision 
        2.  Local health, education, and social service agencies shall 
        refer children under age five who are known to need or suspected 
        of needing special instruction and services to the school 
        district.  Districts with less than the minimum number of 
        eligible children with a disability as determined by the state 
        board shall cooperate with other districts to maintain a full 
        range of programs for education and services for children with a 
        disability.  This subdivision does not alter the compulsory 
        attendance requirements of section 120.101. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        120.17, subdivision 3, is amended to read: 
           Subd. 3.  [RULES OF THE STATE BOARD.] (a) 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 children with a disability.  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 children with 
        a disability.  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, shall adopt permanent rules for instruction 
        and services for children under age five and their families.  
        These rules are binding on state and local education, health, 
        and human services agencies.  The state board shall adopt rules 
        to determine eligibility for special education services.  The 
        rules shall include procedures and standards by which to grant 
        variances for experimental eligibility criteria.  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.  
           (b) The state's regulatory scheme should support schools by 
        assuring that all state special education rules adopted by the 
        state board of education result in one or more of the following 
        outcomes: 
           (1) increased time available to teachers for educating 
        students through direct and indirect instruction; 
           (2) consistent and uniform access to effective education 
        programs for students with disabilities throughout the state; 
           (3) reduced inequalities, conflict, and court actions 
        related to the delivery of special education instruction and 
        services for students with disabilities; 
           (4) clear expectations for service providers and for 
        students with disabilities; 
           (5) increased accountability for all individuals and 
        agencies that provide instruction and other services to students 
        with disabilities; 
           (6) greater focus for the state and local resources 
        dedicated to educating students with disabilities; and 
           (7) clearer standards for evaluating the effectiveness of 
        education and support services for students with disabilities. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        120.17, subdivision 11a, is amended to read: 
           Subd. 11a.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
        interagency coordinating council of at least 17, but not more 
        than 25 members is established, in compliance with Public Law 
        Number 102-119, section 682.  The members shall be appointed by 
        the governor.  Council members shall elect the council chair.  
        The representative of the commissioner of education may not 
        serve as the chair.  The council shall be composed of at least 
        five parents, including persons of color, of children with 
        disabilities under age 12, including at least three parents of a 
        child with a disability under age seven, five representatives of 
        public or private providers of services for children with 
        disabilities under age five, including a special education 
        director, county social service director, and a community health 
        services or public health nursing administrator, one member of 
        the senate, one member of the house of representatives, one 
        representative of teacher preparation programs in early 
        childhood-special education or other preparation programs in 
        early childhood intervention, at least one representative of 
        advocacy organizations for children with disabilities under age 
        five, one physician who cares for young children with special 
        health care needs, one representative each from the 
        commissioners of commerce, education, health, human services, 
        and jobs and training, and a representative from Indian health 
        services or a tribal council.  Section 15.059, subdivisions 2 to 
        5, apply to the council.  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 children with disabilities 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 children under age five with 
        disabilities 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.  
           Each year by June 1, the council shall recommend to the 
        governor and the commissioners of education, health, human 
        services, commerce, and jobs and training policies for a 
        comprehensive and coordinated system. 
           Notwithstanding any other law to the contrary, the state 
        interagency coordinating council shall expire on June 30, 1997. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        120.17, subdivision 11b, is amended to read: 
           Subd. 11b.  [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
        BOARDS.] (a) It is the joint responsibility of county boards and 
        school boards to coordinate, provide, and pay for appropriate 
        services, and to facilitate payment for services from public and 
        private sources.  Appropriate services for children eligible 
        under section 120.03 must be determined in consultation with 
        parents, physicians, and other educational, medical, health, and 
        human services providers.  The services provided must be in 
        conformity with an individual family service plan (IFSP) as 
        defined in Code of Federal Regulations, title 34, sections 
        303.340, 303.341a, and 303.344 for each eligible infant and 
        toddler from birth through age two and its family, or an 
        individual education plan (IEP) or individual service plan (ISP) 
        for each eligible child ages three through four.  County boards 
        and school boards shall not be required to provide any services 
        under an individual family service plan that are not required in 
        an individual education plan or individual service plan.  
           (b) Appropriate services include family education and 
        counseling, home visits, occupational and physical therapy, 
        speech pathology, audiology, psychological services, special 
        instruction, nursing, respite, nutrition, assistive technology, 
        transportation and related costs, social work, vision services, 
        case management including service coordination under subdivision 
        8, medical services for diagnostic and evaluation purposes, 
        early identification, and screening, assessment, and health 
        services necessary to enable children with disabilities to 
        benefit from early intervention services. 
           (c) School and county boards shall coordinate early 
        intervention services.  In the absence of agreements established 
        according to subdivision 13, service responsibilities for 
        children birth through age two are as follows: 
           (1) school boards are required to provide, pay for, and 
        facilitate payment for special education and related services 
        required under section 120.17, subdivision 2; 
           (2) county boards are required to provide, pay for, and 
        facilitate payment for noneducational services of social work, 
        psychology, transportation and related costs, nursing, respite, 
        and nutrition services not required under clause (1). 
           (d) School and county boards may develop an interagency 
        agreement according to subdivision 13 to establish agency 
        responsibility that assures that early intervention services are 
        coordinated, provided, paid for, and that payment is facilitated 
        from public and private sources. 
           (e) County and school boards shall jointly determine the 
        primary agency in this cooperative effort and must notify the 
        commissioner of education the state lead agency of their 
        decision. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        120.17, subdivision 12, is amended to read: 
           Subd. 12.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
        A school district, group of districts, or special education 
        cooperative, in cooperation with the health and human service 
        agencies located in the county or counties in which the district 
        or cooperative is located, shall establish an interagency early 
        intervention committee for children with disabilities under age 
        five and their families.  Committees shall include 
        representatives of local and regional health, education, and 
        county human service agencies; county boards; school boards; 
        early childhood family education programs; parents of young 
        children with disabilities under age 12; current service 
        providers; and may also include representatives from other 
        private or public agencies.  The committee shall elect a chair 
        from among its members and shall meet at least quarterly. 
           (b) The committee shall develop and implement interagency 
        policies and procedures concerning the following ongoing duties: 
           (1) develop public awareness systems designed to inform 
        potential recipient families of available programs and services; 
           (2) implement interagency child find systems designed to 
        actively seek out, identify, and refer infants and young 
        children with, or at risk of, disabilities and their families; 
           (3) establish and evaluate the identification, referral, 
        child and family assessment systems, procedural safeguard 
        process, and community learning systems to recommend, where 
        necessary, alterations and improvements; 
           (4) assure the development of individualized family service 
        plans for all eligible infants and toddlers with disabilities 
        from birth through age two, and their families, and individual 
        education plans and individual service plans when necessary to 
        appropriately serve children with disabilities, age three and 
        older, and their families and recommend assignment of financial 
        responsibilities to the appropriate agencies.  Agencies are 
        encouraged to develop individual family service plans for 
        children with disabilities, age three and older; 
           (5) implement a process for assuring that services involve 
        cooperating agencies at all steps leading to individualized 
        programs; 
           (6) facilitate the development of a transitional plan if a 
        service provider is not recommended to continue to provide 
        services; 
           (7) identify the current services and funding being 
        provided within the community for children with disabilities 
        under age five and their families; and 
           (8) develop a plan for the allocation and expenditure of 
        additional state and federal early intervention funds under 
        United States Code, title 20, section 1471 et seq. (Part H, 
        Public Law Number 102-119) and United States Code, title 20, 
        section 631, et seq. (Chapter I, Public Law Number 89-313); and 
           (9) develop a policy that is consistent with section 13.05, 
        subdivision 9, and federal law to enable a member of an 
        interagency early intervention committee to allow another member 
        access to data classified as not public. 
           (c) The local committee shall also: 
           (1) participate in needs assessments and program planning 
        activities conducted by local social service, health and 
        education agencies for young children with disabilities and 
        their families; 
           (2) review and comment on the early intervention section of 
        the total special education system for the district, the county 
        social service plan, the section or sections of the community 
        health services plan that address needs of and service 
        activities targeted to children with special health care needs, 
        and the section of the maternal and child health special project 
        grants that address needs of and service activities targeted to 
        children with chronic illness and disabilities; and 
           (3) prepare a yearly summary on the progress of the 
        community in serving young children with disabilities, and their 
        families, including the expenditure of funds, the identification 
        of unmet service needs identified on the individual family 
        services plan and other individualized plans, and local, state, 
        and federal policies impeding the implementation of this section.
           (d) The summary must be organized following a format 
        prescribed by the commissioner of education the state lead 
        agency and must be submitted to each of the local agencies and 
        to the state interagency coordinating council by October 1 of 
        each year. 
           The departments of education, health, and human services 
        must provide assistance to the local agencies in developing 
        cooperative plans for providing services. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        120.17, subdivision 17, is amended to read: 
           Subd. 17.  [STATE INTERAGENCY AGREEMENT.] (a) The 
        commissioners of the departments of education, health, and human 
        services shall enter into an agreement to implement this section 
        and Part H, Public Law Number 102-119, and as required by Code 
        of Federal Regulations, title 34, section 303.523, to promote 
        the development and implementation of interagency, coordinated, 
        multidisciplinary state and local early childhood intervention 
        service systems for serving eligible young children with 
        disabilities, birth through age two, and their families.  The 
        agreement must be reviewed annually. 
           (b) The state interagency agreement shall outline at a 
        minimum the conditions, procedures, purposes, and 
        responsibilities of the participating state and local agencies 
        for the following: 
           (1) membership, roles, and responsibilities of a state 
        interagency committee for the oversight of priorities and budget 
        allocations under Part H, Public Law Number 102-119, and other 
        state allocations for this program; 
           (2) child find; 
           (3) establishment of local interagency agreements; 
           (4) review by a state interagency committee of the 
        allocation of additional state and federal early intervention 
        funds by local agencies; 
           (5) fiscal responsibilities of the state and local 
        agencies; 
           (6) intra-agency and interagency dispute resolution; 
           (7) payor of last resort; 
           (8) maintenance of effort; 
           (9) procedural safeguards, including mediation; 
           (10) complaint resolution; 
           (11) quality assurance; 
           (12) data collection; and 
           (13) an annual summary to the state interagency 
        coordinating council regarding conflict resolution activities 
        including disputes, due process hearings, and complaints; and 
           (14) other components of the state and local early 
        intervention system consistent with Public Law Number 102-119. 
        Written materials must be developed for parents, IEIC's, and 
        local service providers that describe procedures developed under 
        this section as required by Code of Federal Regulations, title 
        34, section 303. 
           Sec. 8.  Minnesota Statutes 1992, section 120.17, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [AGENCY ACCESS TO NONPUBLIC DATA.] The 
        commissioner of administration shall prepare a form and 
        disseminate guidelines for state agencies, political 
        subdivisions, and other responsible authorities to use to enable 
        a responsible authority to allow another responsible authority 
        access to data about a child with a disability that is 
        classified as not public.  The form and guidelines must be 
        consistent with section 13.05, subdivision 9, and federal law, 
        and are not subject to the rule making requirements under 
        chapter 14. 
           Sec. 9.  [120.1701] [INTERAGENCY EARLY CHILDHOOD 
        INTERVENTION SYSTEM.] 
           Subdivision 1.  [PURPOSE.] It is the policy of the state to 
        develop and implement comprehensive, coordinated, 
        multidisciplinary interagency programs of early intervention 
        services for children with disabilities and their families. 
           Subd. 2.  [DEFINITIONS.] For the purposes of this section 
        the following terms have the meaning given them.  
           (a) "Coordinate" means to provide ready access to a 
        community's services and resources to meet child and family 
        needs.  
           (b) "Core early intervention services" means services that 
        are available at no cost to children and families.  These 
        services include: 
           (1) identification and referral; 
           (2) screening; 
           (3) evaluation; 
           (4) assessment; 
           (5) service coordination; 
           (6) special education and related services provided under 
        section 120.17, subdivision 3a, and United States Code, title 
        20, section 1401; and 
           (7) protection of parent and child rights by means of 
        procedural safeguards. 
           (c) "County board" means a county board established under 
        chapter 375. 
           (d) "Early intervention record" means any personally 
        identifiable information about a child or the child's family 
        that is generated by the early intervention system, and that 
        pertains to evaluation and assessment, development of an 
        individualized family service plan, and the delivery of early 
        intervention services. 
           (e) "Early intervention services" means services provided 
        in conformity with an individualized family service plan that 
        are designed to meet the special developmental needs of a child 
        eligible under Code of Federal Regulations, title 34, part 303, 
        and the needs of the child's family related to enhancing the 
        child's development and that are selected in collaboration with 
        the parent.  These services include core early intervention 
        services and additional early intervention services listed in 
        subdivision 4 and services defined in Code of Federal 
        Regulations, title 34, section 303, et seq. 
           (f) "Early intervention system" means the total effort in 
        the state to meet the needs of eligible children and their 
        families, including, but not limited to: 
           (1) any public agency in the state that receives funds 
        under the Individuals with Disabilities Education Act, United 
        States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
        Number 102-119); 
           (2) other state and local agencies administering programs 
        involved in the provision of early intervention services, 
        including, but not limited to: 
           (i) the Maternal and Child Health program under Title V of 
        the Social Security Act, United State Code, title 42, sections 
        701 to 709; 
           (ii) the Individuals with Disabilities Education Act, 
        United State Code, title 20, sections 1411 to 1420 (Part B); 
           (iii) medical assistance under the Social Security Act, 
        United State Code, title 42, section 1396 et seq.; 
           (iv) the Developmental Disabilities Assistance and Bill of 
        Rights Act, United States Code, title 42, sections 6021 to 6030 
        (Part B); and 
           (v) the Head Start Act, United States Code, title 42, 
        sections 9831 to 9852; and 
           (3) services provided by private groups or third-party 
        payers in conformity with an individualized family service plan. 
           (g) "Eligibility for Part H" means eligibility for early 
        childhood special education under section 120.03 and Minnesota 
        Rules, part 3525.2335, subpart 1, items A and B. 
           (h) "Facilitate payment" means helping families access 
        necessary public or private assistance that provides payment for 
        services required to meet needs identified in a service plan, 
        individual education plan (IEP), individual service plan (ISP), 
        or individualized family service plan (IFSP), according to time 
        frames required by the plan.  This may also include activities 
        to collect fees for services provided on a sliding fee basis, 
        where permitted by state law. 
           (i) "Individualized family service plan" or "IFSP" means a 
        written plan for providing services to a child and the child's 
        family.  
           (j) "Interagency child find systems" means activities 
        developed on an interagency basis with the involvement of 
        interagency early intervention committees and other relevant 
        community groups to actively seek out, identify, and refer 
        infants and young children with, or at risk of, disabilities, 
        and their families. 
           (k) "Local primary agency" means the agency designated 
        jointly by the school and county board under subdivision 4. 
           (l) "Parent" means the biological parent with parental 
        rights, adoptive parent, legal guardian, or surrogate parent. 
           (m) "Part H state plan" means the annual state plan 
        application approved by the federal government under the 
        Individuals with Disabilities Education Act, United States Code, 
        title 20, section 1471 et seq. (Part H, Public Law Number 
        102-119). 
           (n) "Pay for" means using federal, state, local, and 
        private dollars available for early intervention services. 
           (o) "Respite" means short term, temporary care provided to 
        a child with a disability due to the temporary absence or need 
        for relief of the family member or members or primary care 
        giver, normally providing the care. 
           (p) "State lead agency" means the state agency receiving 
        federal funds under the Individuals with Disabilities Education 
        Act, United States Code, title 20, section 1471 et seq. (Part H, 
        Public Law Number 102-119). 
           (q) "Surrogate parent" means a person appointed by the 
        local education agency to assure that the rights of the child to 
        early intervention services are protected. 
           Subd. 6.  [LOCAL PRIMARY AGENCY.] (a) The local primary 
        agency shall: 
           (1) facilitate the development of annual fund requests that 
        identify arrangements with other local and regional agencies 
        providing services as part of the state's early childhood 
        intervention system and that result in service availability on a 
        year-round basis, as necessary; 
           (2) administer funds received through the annual fund 
        request; 
           (3) provide oversight for data collection efforts; 
           (4) facilitate completion of interagency early intervention 
        committee duties as indicated in subdivision 5; 
           (5) request mediation from the state lead agency, if 
        necessary; 
           (6) request assistance from the state lead agency when 
        disputes between agencies cannot be resolved within 20 calendar 
        days; and 
           (7) receive written requests from parents for matters that 
        may be resolved through due process hearings. 
           (b) When the local primary agency is not an education 
        agency, resources distributed under the early intervention fund 
        shall be transferred from a local educational agency to a 
        noneducation agency using a state provided contract.  A local 
        primary agency may budget for indirect costs at an amount not to 
        exceed five percent of the amount allocated from the early 
        intervention fund. 
           Subd. 7.  [INDIVIDUALIZED FAMILY SERVICE PLAN.] (a) A team 
        must participate in IFSP meetings to develop the individualized 
        family service plan.  The team shall include:  
           (1) a parent or parents of the child; 
           (2) other family members, as requested by the parent, if 
        feasible to do so; 
           (3) an advocate or person outside of the family, if the 
        parent requests that the person participate; 
           (4) the service coordinator who has been working with the 
        family since the initial referral, or who has been designated by 
        the public agency to be responsible for implementation of the 
        IFSP; and 
           (5) a person or persons involved in conducting evaluation 
        and assessments.  
           (b) The IFSP must include: 
           (1) information about the child's developmental status; 
           (2) family information, with the consent of the family; 
           (3) major outcomes expected to be achieved by the child and 
        the family, that include the criteria, procedures, and time 
        lines; 
           (4) specific early intervention services necessary to meet 
        the unique needs of the child and the family to achieve the 
        outcomes; 
           (5) payment arrangements, if any; 
           (6) medical and other services that the child needs, but 
        that are not required under the Individual with Disabilities 
        Education Act, United States Code, title 20, section 1471 et 
        seq. (Part H, Public Law Number 102-119) including funding 
        sources to be used in paying for those services and the steps 
        that will be taken to secure those services through public or 
        private sources; 
           (7) dates and duration of early intervention services; 
           (8) name of the service coordinator; 
           (9) steps to be taken to support a child's transition from 
        early intervention services to other appropriate services; and 
           (10) signature of the parent and authorized signatures of 
        the agencies responsible for providing, paying for, or 
        facilitating payment (or any combination of these) for early 
        intervention services. 
           Subd. 8.  [SERVICE COORDINATION.] (a) The team developing 
        the individualized family service plan under subdivision 7 shall 
        select a service coordinator to carry out service coordination 
        activities on an interagency basis.  Service coordination must 
        actively promote a family's capacity and competency to identify, 
        obtain, coordinate, monitor, and evaluate resources and services 
        to meet the family's needs.  Service coordination activities 
        include: 
           (1) coordinating the performance of evaluations and 
        assessments; 
           (2) facilitating and participating in the development, 
        review, and evaluation of individualized family service plans; 
           (3) assisting families in identifying available service 
        providers; 
           (4) coordinating and monitoring the delivery of available 
        services; 
           (5) informing families of the availability of advocacy 
        services; 
           (6) coordinating with medical, health, and other service 
        providers; 
           (7) facilitating the development of a transition plan at 
        least six months prior to the time the child is no longer 
        eligible for early intervention services, if appropriate; 
           (8) managing the early intervention record and submitting 
        additional information to the local primary agency at the time 
        of periodic review and annual evaluations; and 
           (9) notifying a local primary agency when disputes between 
        agencies impact service delivery required by an individualized 
        family service plan. 
           (b) A service coordinator must be knowledgeable about 
        children and families receiving services under this section, 
        requirements of state and federal law, and services available in 
        the interagency early childhood intervention system. 
           Subd. 8a.  [EARLY INTERVENTION RESPITE.] The provision of 
        respite services for an eligible child and family shall be 
        determined in the context of the IFSP development based on the 
        individual needs of the child and family and with consideration 
        given to the following criteria: 
           (1) severity of the child's disability and needs; 
           (2) potential risk of out-of-home placement for the child 
        if respite services are not provided; 
           (3) parental lack of access to informal support systems, 
        including, but not limited to, extended family, supportive 
        friends, and community supports; 
           (4) presence of factors known to increase family stress, 
        including, but not limited to, family size and presence of 
        another child or family member with a disability; 
           (5) the availability of other public services provided to 
        the family which assist the parent or primary caretaker in 
        obtaining relief from caretaking responsibilities; and 
           (6) the perceived and expressed level of need for respite 
        services by the parent. 
           Counties are encouraged to make a variety of respite 
        service models available, which may include in or out-of-home 
        respite, family reimbursement programs, and parent-to-parent 
        respite projects. 
           Subd. 9.  [EARLY INTERVENTION FLOW-THROUGH DOLLARS.] (a) 
        The state lead agency shall administer the early intervention 
        account which consists of federal allocations.  The Part H state 
        plan shall state the amount of federal resources in the early 
        intervention account available for use by local agencies.  The 
        state lead agency shall distribute the funds to the local 
        primary agency based on a December 1 count of the prior year of 
        Part H eligible children for the following purposes:  
           (1) as provided in Code of Federal Regulations, title 34, 
        part 303.425, to arrange for payment for early intervention 
        services not elsewhere available, or to pay for services during 
        the pendency of a conflict procedure, including mediation, 
        complaints, due process hearings, and interagency disputes; and 
           (2) to support interagency child find system activities.  
           (b) The priority purpose for this fund is paragraph (a), 
        clause (1).  The local primary agency shall reallocate resources 
        from the early intervention fund as necessary in order to meet 
        this priority. 
           (c) Nothing in this subdivision shall limit the state lead 
        agency's authority to allocate discretionary federal funds for 
        any purpose consistent with the Individuals with Disabilities 
        Education Act, United States Code, title 20, sections 1471 to 
        1485 (Part H, Public Law Number 102-119) and regulations adopted 
        under United States Code, title 20, sections 1471 to 1485. 
           (d) Each county board must continue to spend for early 
        intervention services under subdivision 2, paragraph (e), an 
        amount equal to the total county expenditure during the period 
        from January 1, 1993, to December 31, 1993, for these same 
        services.  The commissioner of human services, in consultation 
        with the commissioner of health and the association of Minnesota 
        counties, shall establish a process for determining base year 
        1993 expenditures. 
           (e) County boards that have submitted base year 1993 
        expenditures as required under paragraph (d) are not required to 
        pay any increased cost over the base year 1993 for early 
        intervention services resulting from implementing the early 
        intervention system.  Increased costs to county boards may be 
        paid for with early intervention flow-through dollars. 
           (f) School boards are not required to pay for services 
        defined in section 120.17, subdivision 11b, paragraph (c), 
        clause (2). 
           Subd. 10.  [PAYMENT FOR SERVICES.] Core early intervention 
        services shall be provided at public expense with no cost to 
        parents.  Parents shall be requested to assist in the cost of 
        additional early intervention services by using third-party 
        payment sources and applying for available resources.  If a 
        parent chooses not to access these resources, additional early 
        intervention services may not be provided.  Payment structures 
        permitted under state law shall be used to pay for additional 
        early intervention services.  Parental financial responsibility 
        shall be clearly defined in the individualized family service 
        plan.  A parent's inability to pay shall not prohibit a child 
        from receiving needed early intervention services. 
           Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
        1995 and 1996, the state lead agency shall establish a reserve 
        account from federal sources to pay for services in dispute or 
        to pay for early intervention services when local agencies have 
        exhausted all other public and private funds available for Part 
        H eligible children. 
           (b) The lead agency shall report to the legislature by 
        January 1, 1996, regarding county board expenditures for early 
        intervention services and the continuing need and funding of the 
        reserve account.  
           Subd. 14.  [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 rendered to a child with a 
        disability, and the child's family. 
           Subd. 15.  [BENEFITS COORDINATION.] The department of 
        health shall provide technical assistance in a timely manner to 
        service coordinators, parents of children with disabilities, and 
        agencies in situations requiring the coordination of health 
        insurance benefits, or the identification of third-party payor 
        responsibilities to provide necessary health benefits. 
           Subd. 16.  [PROCEDURAL SAFEGUARDS; PARENT AND CHILD 
        RIGHTS.] (a) This subdivision applies to local school and county 
        boards for children from birth through age two who are eligible 
        for Part H, Public Law Number 102-119, and their families.  This 
        subdivision must be consistent with the Individuals with 
        Disabilities Education Act, United States Code, title 20, 
        sections 1471 to 1485 (Part H, Public Law Number 102-119), 
        regulations adopted under United States Code, title 20, sections 
        1471 to 1485, and this section. 
           (b) A parent has the right to: 
           (1) inspect and review early intervention records; 
           (2) prior written notice of a proposed action in the 
        parents' native language unless it is clearly not feasible to do 
        so; 
           (3) give consent to any proposed action; 
           (4) selectively accept or decline any early intervention 
        service; and 
           (5) resolve issues regarding the identification, 
        evaluation, or placement of the child, or the provision of 
        appropriate early intervention services to the child and the 
        child's family through an impartial due process hearing pursuant 
        to subdivision 20. 
           (c) The eligible child has the right to have a surrogate 
        parent appointed by a school district as required by section 
        120.17, subdivision 3. 
           Subd. 17.  [MEDIATION PROCEDURE.] The commissioner of the 
        state lead agency shall use federal funds to provide mediation 
        for the activities in paragraphs (a) and (b). 
           (a) A parent may resolve a dispute regarding issues in 
        subdivision 16, paragraph (b), clause (5), through mediation.  
        If the parent chooses mediation, all public agencies involved in 
        the dispute shall participate in the mediation process.  The 
        parent and the public agencies must complete the mediation 
        process within 20 calendar days of the date the commissioner 
        receives a parent's written request for mediation.  The 
        mediation process may not be used to delay a parent's right to a 
        due process hearing.  The resolution of the mediation is not 
        binding on any party. 
           (b) The local primary agency may request mediation on 
        behalf of involved agencies when there are disputes between 
        agencies regarding responsibilities to coordinate, provide, pay 
        for, or facilitate payment for early intervention services. 
           Subd. 18.  [COMPLAINT PROCEDURE.] (a) An individual or 
        organization may file a written signed complaint with the 
        commissioner of the state lead agency alleging that one or more 
        requirements of the Code of Federal Regulations, title 34, part 
        303, is not being met.  The complaint must include:  
           (1) a statement that the state has violated the Individuals 
        with Disabilities Education Act, United States Code, title 20, 
        section 1471 et seq. (Part H, Public Law Number 102-119) or Code 
        of Federal Regulations, title 34, section 303; and 
           (2) the facts on which the complaint is based. 
           (b) The commissioner of the state lead agency shall receive 
        and coordinate with other state agencies the review and 
        resolution of a complaint within 60 calendar days according to 
        the state interagency agreement required under subdivision 22. 
           Subd. 19.  [INTERAGENCY DISPUTE PROCEDURE.] (a) A dispute 
        between a school board and a county board that is responsible 
        for implementing the provisions of subdivision 4 regarding early 
        identification, child and family assessment, service 
        coordination, and IFSP development and implementation shall be 
        resolved according to this subdivision when the dispute involves 
        services provided to children and families eligible under the 
        Individuals with Disabilities Education Act, United States Code, 
        title 20, section 1471 et seq. (Part H, Public Law Number 
        102-119). 
           (b) A dispute occurs when the school board and county board 
        are unable to agree as to who is responsible to coordinate, 
        provide, pay for, or facilitate payment for services from public 
        and private sources. 
           (c) Written and signed disputes shall be filed with the 
        local primary agency. 
           (d) The local primary agency shall have attempted to 
        resolve the matter with the involved school board and county 
        board and may request mediation from the commissioner of the 
        state lead agency for this purpose. 
           (e) When interagency disputes have not been resolved within 
        30 calendar days, the local primary agency shall request the 
        commissioner of the state lead agency to review the matter with 
        the commissioners of health and human services and make a 
        decision.  The commissioner shall provide a consistent process 
        for reviewing those procedures.  The commissioners' decision is 
        binding subject to the right of an aggrieved party to appeal to 
        the state court of appeals. 
           (f) The local primary agency shall ensure that eligible 
        children and their families receive early intervention services 
        during resolution of a dispute.  While a local dispute is 
        pending, the local primary agency shall either assign financial 
        responsibility to an agency or pay for the service from the 
        early intervention account under subdivision 9.  If in resolving 
        the dispute, it is determined that the assignment of financial 
        responsibility was inappropriate, the responsibility for payment 
        must be reassigned to the appropriate agency and the responsible 
        agency shall make arrangements for reimbursing any expenditures 
        incurred by the agency originally assigned financial 
        responsibility. 
           Subd. 20.  [DUE PROCESS HEARINGS.] By July 1, 1994, the 
        departments of education, health, and human services shall 
        develop procedures for hearings. 
           Subd. 21.  [DATA COLLECTION.] By July 1, 1994, the 
        departments of education, health, and human services shall 
        develop a plan to collect data about which early intervention 
        services are being provided to children and families eligible 
        under the Individuals with Disabilities Education Act, United 
        States Code, title 20, section 1471 et seq. (Part H, Public Law 
        Number 102-119) and sources of payment for those services. 
           Sec. 10.  [120.185] [ACCOMMODATING STUDENTS WITH 
        DISABILITIES.] 
           A school or school district shall provide a student who is 
        an "individual with a disability" under Section 504 of the 
        Rehabilitation Act of 1973, United States Code, title 29, 
        section 794, or under the Americans with Disabilities Act, 
        Public Law Number 101-336, with reasonable accommodations or 
        modifications in programs.  
           Sec. 11.  Minnesota Statutes 1992, section 124.248, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SPECIAL EDUCATION AID.] Special education aid 
        shall be paid to an outcome-based school according to section 
        124.32 as though it were a school district.  The school may 
        charge tuition to the district of residence as provided in 
        section 120.17, subdivision 4.  The district of residence shall 
        levy as provided in section 275.125, subdivision 8c, as though 
        it were participating in a cooperative.  The outcome-based 
        school shall allocate its special education levy equalization 
        revenue to the resident districts of the pupils attending the 
        outcome-based school as though it were a cooperative, as 
        provided in section 124.321, subdivision 2, paragraph (a), 
        clause (1).  The districts of residence shall levy as though 
        they were participating in a cooperative, as provided in section 
        124.321, subdivision 3. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        124.573, subdivision 2b, is amended to read: 
           Subd. 2b.  [SECONDARY VOCATIONAL AID.] A district's or 
        cooperative center's "secondary vocational aid" for secondary 
        vocational education programs aid for a fiscal year equals the 
        sum of the following amounts for each program lesser of: 
           (a) the greater of zero, or 75 percent of the difference 
        between:  
           (1) salaries paid to essential, licensed personnel 
        providing direct instructional services to students in that 
        fiscal year for services rendered in the district'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 that program; and $80 times the 
        district's average daily membership in grades 10 to 12; or 
           (b) 40 25 percent of approved expenditures for the 
        following: 
           (1) salaries paid to essential, licensed personnel 
        providing direct instructional services to students in that 
        fiscal year for services rendered in the district's approved 
        secondary vocational education programs; 
           (2) contracted services provided by a public or private 
        agency other than a Minnesota school district or cooperative 
        center under subdivision 3a; 
           (2) (3) necessary travel between instructional sites by 
        licensed secondary vocational education personnel; 
           (3) (4) necessary travel by licensed secondary vocational 
        education personnel for vocational student organization 
        activities held within the state for instructional purposes; 
           (4) (5) curriculum development activities that are part of 
        a five-year plan for improvement based on program assessment; 
           (5) (6) necessary travel by licensed secondary vocational 
        education personnel for noncollegiate credit bearing 
        professional development; and 
           (6) (7) specialized vocational instructional supplies. 
           (c) Up to ten percent of a district's secondary vocational 
        aid may be spent on equipment purchases.  Districts using 
        secondary vocational aid for equipment purchases must report to 
        the department of education on the improved learning 
        opportunities for students that result from the investment in 
        equipment. 
           Sec. 13.  Minnesota Statutes 1993 Supplement, section 
        124.573, subdivision 2e, is amended to read: 
           Subd. 2e.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
        INTERMEDIATE DISTRICTS.] For purposes of subdivision 
        2b, paragraph (b), and subdivision 2f, paragraph (b), a 
        cooperative center or an intermediate district shall allocate 
        its approved expenditures for secondary vocational education 
        programs among participating school districts.  For purposes of 
        subdivision 2f, paragraph (a), a cooperative center or an 
        intermediate district shall allocate its secondary vocational 
        aid for fiscal year 1994 among participating school districts.  
        For 1995 and later fiscal years, secondary vocational aid for 
        services provided by a cooperative center or an intermediate 
        district shall be paid to the participating school district. 
           Sec. 14.  Minnesota Statutes 1992, section 124.573, is 
        amended by adding a subdivision to read: 
           Subd. 2f.  [AID GUARANTEE.] Notwithstanding subdivision 2b, 
        the secondary vocational education aid for a school district is 
        not less than the lesser of: 
           (a) 95 percent of the secondary vocational education aid 
        the district received for the previous fiscal year; or 
           (b) 40 percent of the approved expenditures for secondary 
        vocational programs included in subdivision 2b, paragraph (b). 
           Sec. 15.  Minnesota Statutes 1993 Supplement, section 
        124.573, subdivision 3, is amended to read: 
           Subd. 3.  [COMPLIANCE WITH RULES.] Aid shall be paid under 
        this section only for services rendered or for costs incurred in 
        secondary vocational education programs approved by the 
        commissioner and operated in accordance with rules promulgated 
        by the state board.  These rules shall provide minimum 
        student-staff ratios required for a secondary vocational 
        education program in a cooperative center area to qualify for 
        this aid.  The rules must not require the collection of data at 
        the program or course level to calculate secondary vocational 
        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 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 costs incurred by essential, 
        licensed personnel who meet the work experience requirements for 
        licensure pursuant to the rules of the state board.  Licensed 
        personnel means persons holding a valid secondary vocational 
        license issued by the commissioner, 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 No. 287, 916, or 917, licensed personnel 
        means persons holding a valid vocational license issued by the 
        commissioner 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. 
           Sec. 16.  Minnesota Statutes 1992, section 124.90, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [NO REDUCTION IN REVENUE.] A school district's 
        revenue for special education programs shall not be reduced by 
        any payments for medical assistance or insurance received 
        according to this section. 
           Sec. 17.  [125.1895] [SKILLED SCHOOL INTERPRETERS.] 
           Subdivision 1.  [REQUIREMENTS FOR AMERICAN SIGN 
        LANGUAGE/ENGLISH INTERPRETERS.] In addition to any other 
        requirements that a school district establishes, any person 
        employed to provide American sign language/English interpreting 
        or sign transliterating services on a full-time or part-time 
        basis for a school district after July 1, 2000, must: 
           (1) hold current interpreter and transliterator 
        certificates awarded by the Registry of Interpreters for the 
        Deaf (RID), or the general level interpreter proficiency 
        certificate awarded by the National Association of the Deaf, or 
        a comparable state certification from the state board of 
        education; and 
           (2) satisfactorily complete an interpreter/transliterator 
        training program affiliated with an accredited educational 
        institution. 
           Subd. 2.  [ORAL OR CUED SPEECH TRANSLITERATORS.] In 
        addition to any other requirements that a school district 
        establishes, any person employed to provide oral transliterating 
        or cued speech transliterating services on a full-time or 
        part-time basis for a school district after July 1, 2000, must 
        hold a current applicable transliterator certificate awarded by 
        the national certifying association or comparable state 
        certification from the state board of education. 
           Subd. 3.  [QUALIFIED INTERPRETERS.] The department of 
        education and the resource center:  deaf and hard of hearing 
        shall work with existing interpreter/transliterator training 
        programs, other training/educational institutions, and the 
        regional service centers to ensure that ongoing staff 
        development training for educational 
        interpreters/transliterators is provided throughout the state. 
           Subd. 4.  [REIMBURSEMENT.] For purposes of revenue under 
        sections 124.321 and 124.322, the department of education shall 
        only reimburse school districts for the services of those 
        interpreters/transliterators who satisfy the standards of 
        competency under this section.  
           Sec. 18.  Minnesota Statutes 1992, section 126.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSTRUCTION REQUIRED IN PUBLIC SCHOOLS.] 
        There shall be established and provided in all the public 
        schools of this state, physical and health education, training, 
        and instruction of pupils of both sexes.  Every pupil attending 
        any such school, to the extent physically fit and able to do so, 
        shall participate in the physical training program.  Suitable 
        modified courses shall be provided for pupils physically or 
        mentally unable or unfit to take the regular courses prescribed 
        for normal pupils.  No pupil shall be required to undergo a 
        physical or medical examination or treatment if the parent or 
        legal guardian of the person of such pupil shall in writing 
        notify the teacher or principal or other person in charge of 
        such pupil of an objection to such physical or medical 
        examination or treatment; provided that secondary school pupils 
        in junior and senior years need not take the course unless 
        required by the local school board.  
           Sec. 19.  Minnesota Statutes 1992, section 126.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARENT COMMITTEE.] School boards and 
        American Indian schools shall provide for the maximum 
        involvement of parents of children enrolled in education 
        programs, including language and culture education programs, 
        programs for elementary and secondary grades, special education 
        programs, and support services.  Accordingly, the school board 
        of a school district in which there are ten or more American 
        Indian children enrolled and each American Indian school shall 
        establish a parent committee.  If a committee whose membership 
        consists of a majority of parents of American Indian children 
        has been or is established according to federal, tribal, or 
        other state law, that committee shall may serve as the committee 
        required by this section and shall be subject to, at least, the 
        requirements of this section subdivision and subdivision 1a.  
           The parent committee shall develop its recommendations in 
        consultation with the curriculum advisory committee required by 
        section 126.666, subdivision 2.  This committee shall afford 
        parents the necessary information and the opportunity 
        effectively to express their views concerning all aspects of 
        American Indian education and the educational needs of the 
        American Indian children enrolled in the school or program.  The 
        committee shall also address the need for adult education 
        programs for American Indian people in the community.  The 
        school board or American Indian school shall ensure that 
        programs are planned, operated, and evaluated with the 
        involvement of and in consultation with parents of children 
        served by the programs. 
           Sec. 20.  Laws 1993, chapter 224, article 3, section 36, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY; APPLICATIONS.] (a) The commissioner 
        shall make application forms available to school districts 
        interested in exploring effective alternatives for delivering 
        certain special education services and programs as described in 
        this section.  Interested school districts must have their 
        application to participate in the project approved by their 
        local school board after a public hearing on the matter.  
        Applications must be submitted to the commissioner by January 1, 
        1995.  The application must describe how the applicant proposes 
        to realize the purpose and goal of the project, including what 
        activities and procedures the applicant proposes and whether the 
        applicant seeks to be exempted from Minnesota Rules, part 
        3525.1341.  The application must also describe what staff 
        development activities the applicant will provide to improve and 
        expand opportunities for students with disabilities in the 
        regular classroom setting and foster greater integration of 
        general education and special education instruction and 
        administration.  The commissioner may require additional 
        information of an applicant.  The commissioner shall approve 12 
        applications before March 1, 1995.  The commissioner shall 
        ensure an equitable geographical distribution of project 
        participants throughout the state. 
           (b) The commissioner shall make available to school 
        districts interested in applying to participate in the project 
        discretionary funds under Public Law Number 101-476 to allow the 
        districts to cover the costs of convening their advisory council 
        members under subdivision 6 to assist in developing an 
        application under this subdivision. 
           Sec. 21.  Laws 1993, chapter 224, article 3, section 38, 
        subdivision 22, is amended to read: 
           Subd. 22.  [TEACHER EDUCATION; HEARING IMPAIRED.] To assist 
        school districts in greater Minnesota in educating teachers in 
        American sign language, American sign language linguistics, and 
        deaf culture as required under section 11, clause (c): 
             $25,000     .....      1994
             $35,000     .....      1995
           This appropriation is available until June 30, 1995. 
           The 1994 appropriation is available for assisting districts 
        in greater Minnesota. 
           The 1995 appropriation is available for all school 
        districts. 
           Any unspent portion of the 1994 appropriation is available 
        in 1995. 
           Sec. 22.  [CERTIFICATION OF SCHOOL INTERPRETERS.] 
           (a) The state board of education, in consultation with the 
        state board of teaching, interpreter/transliterator training 
        programs, the Minnesota resource center:  deaf and 
        hard-of-hearing, the Minnesota registry of interpreters for the 
        deaf, the Minnesota association of deaf citizens, the Minnesota 
        commission serving deaf and hard-of-hearing people, and the deaf 
        and hard-of-hearing services division of the department of human 
        services, shall develop and adopt a competency-based 
        certification system for school interpreters and 
        transliterators.  The state board shall adopt by rule the state 
        certification system by July 1, 1997, effective for interpreters 
        and transliterators employed after July 1, 2000.  
           (b) The state board of education shall conduct a study of 
        the availability of appropriate training for school interpreters 
        and transliterators throughout the state and the cost to the 
        state, school districts, and their employees for training and 
        certification.  The state board shall report to the education 
        committees of the legislature by February 1, 1995. 
           Sec. 23.  [STATE BOARD OF EDUCATION SHALL ADOPT RULES.] 
           The state board of education shall propose the recommended 
        rules in the final report of the task force on education for 
        children with disabilities and Minnesota Rules, part 3525.2925, 
        subpart 1, as its proposed rules.  The statement of need and 
        reasonableness under Minnesota Statutes, section 14.131, shall 
        consider the impact of proposed changes on individual student 
        needs and student access to necessary services.  The office of 
        administrative hearings shall hold a public hearing under 
        Minnesota Statutes, section 14.14.  The board shall adopt new 
        rules that are effective at the beginning of the 1995-1996 
        school year.  Any future amendments to rules adopted or amended 
        under this section are covered by Minnesota Statutes, chapter 14.
           Sec. 24.  [COALITION FOR EDUCATION REFORM AND 
        ACCOUNTABILITY; SPECIAL EDUCATION REPRESENTATION.] 
           Notwithstanding Laws 1993, chapter 224, article 1, section 
        35, subdivision 2, the panel established under Laws 1993, 
        chapter 224, article 1, section 35, subdivision 3, shall appoint 
        a representative of special education who is familiar with both 
        special education services and finance.  The additional member 
        under this subdivision shall be appointed by July 1, 1994.  The 
        coalition shall also consult with the state special education 
        advisory council in developing its recommendations. 
           Sec. 25.  [REPORTS OF INCIDENTS OF MISBEHAVIOR IN SCHOOLS.] 
           (a) For the 1994-1995 and 1995-1996 school years, each 
        school district shall use a standardized form developed by the 
        commissioner of education to report to the commissioner all 
        incidents of misbehavior that result in the suspension or 
        expulsion of students under Minnesota Statutes, sections 127.26 
        to 127.39.  The standardized reporting form, which the 
        commissioner may coordinate with the reporting form required 
        under Minnesota Statutes, section 121.207, shall include the 
        following information: 
           (1) a description of each incident of misbehavior that 
        leads to the suspension or expulsion of the student including, 
        where appropriate, a description of the dangerous weapon as 
        defined in Minnesota Statutes, section 609.02, subdivision 6, 
        involved in the incident; 
           (2) information about the suspended or expelled student, 
        other than the student's name, including the student's age, 
        whether the student is a student of color, and the number of 
        times the student has been suspended or expelled previously and 
        for what misbehavior; 
           (3) whether the student has or had an individualized 
        learning plan (IEP) under Minnesota Statutes, section 120.17, 
        and, if the student has or had an IEP, whether the misbehavior 
        resulting in suspension or expulsion was a manifestation of the 
        student's disabling condition; 
           (4) the actions taken by school officials to respond to the 
        incident of misbehavior; and 
           (5) the duration of the suspension or expulsion. 
           (b) School districts shall use the standardized form to 
        transmit the information described in paragraph (a) to the 
        commissioner biannually by February 1 and July 1, beginning 
        February 1, 1995, and ending July 1, 1996.  The commissioner 
        shall compile and analyze the data and present to the education 
        committees of the legislature an interim report by January 1, 
        1996, and a final report by February 1, 1997. 
           (c) Based on the data collected, the department shall make 
        recommendations to the legislature by March 15, 1995, for 
        changes in the pupil fair dismissal act. 
           Sec. 26.  [TASK FORCE.] 
           Subdivision 1.  [REAUTHORIZATION.] Notwithstanding Laws 
        1993, chapter 224, article 3, section 41, the task force on 
        education for children with disabilities shall expire February 
        15, 1995.  The commissioner may appoint new members to fill 
        vacancies on the task force. 
           Subd. 2.  [STUDY OF STATE BOARD OF EDUCATION RULES.] (a) 
        The task force shall review and may recommend changes to the 
        education committees of the legislature in the following 
        Minnesota Rules, parts 3525.1325, 3525.1327, 3525.1329, 
        3525.1331, 3525.1333, 3525.1335, 3525.1337, 3525.1339, 
        3525.1341, 3525.1343, 3525.1345, 3525.2325, and 3525.2340.  In 
        making its recommendations, the task force shall consider the 
        educational needs of individual students, students' access to 
        necessary services, maximization of teacher contact time with 
        students, paperwork requirements, student achievement of 
        educational outcomes, the integration of special education and 
        general education instructional practices, and the costs of 
        instruction and support services. 
           (b) The task force shall review the case loads and number 
        of pupils assigned to special education teachers and recommend 
        to the legislature alternatives to prohibiting state board rules 
        that establish caseloads or set a maximum number of pupils 
        assigned to a special education teacher under Minnesota 
        Statutes, section 120.17, subdivision 3.  The task force must 
        assess the financial impact of its recommendations. 
           (c) In making its recommendations, the task force shall 
        consult appropriate experts. 
           Subd. 3.  [PLAN FOR MEETING TECHNOLOGY NEEDS.] The task 
        force shall develop a plan for meeting the information, 
        instructional, and assistive technology needs of special 
        education within the context of the state educational system.  
        The task force shall make recommendations to the education 
        committees of the legislature by January 15, 1995.  The plan 
        shall, at a minimum, address the following: 
           (1) identification of the various technology needs of 
        special education; 
           (2) appropriate integration of special education technology 
        needs with general education information technology; 
           (3) effective uses of technology for enabling special 
        education and regular education staff to meet the needs of 
        children with disabilities; 
           (4) effective uses of technology for improving the 
        efficiency and effectiveness of special education 
        administration, instruction, assessment, and reporting; 
           (5) methods for developing the appropriate technologies and 
        making them available statewide; and 
           (6) costs of developing and implementing the appropriate 
        technologies statewide. 
           Sec. 27.  [GRADUATION RULE.] 
           Subdivision 1.  [SPECIAL EDUCATION.] The state board of 
        education shall consult with the state special education 
        advisory council in developing the high school graduation rule 
        to ensure that students with disabilities may fully participate 
        under the rule.  The state board shall ensure that state and 
        local assessments provide for accommodations, modifications, and 
        adaptations to meet the needs of students with disabilities; 
        clear policies are developed for modifying graduation 
        requirements when necessary to meet a student's needs under an 
        individual education plan; and that state monitoring of learning 
        sites assesses the achievement of a representative sample of all 
        students, including students with individual learning plans. 
           Subd. 2.  [TRANSITION OUTCOMES.] The state board of 
        education shall include in the high school graduation rule 
        outcomes for all students in skills for transition from school 
        to the community, work, vocational training, and higher 
        education.  The outcome shall emphasize knowledge of life 
        skills, skills for planning and evaluating vocational and 
        educational choices, and state and community resources available 
        to assist in identifying and evaluating choices.  The state 
        board shall consult with the state education and employment 
        transitions council and the state special education advisory 
        council in developing the outcomes. 
           Sec. 28.  [SPECIAL EDUCATION MANUAL.] 
           (a) The commissioner of education shall develop a manual 
        pertaining to the delivery of special education instruction and 
        services for use by parents, school district administrators, 
        teachers, and related service staff, and other direct service 
        providers.  The commissioner shall update the manual as 
        necessary to ensure that the information contained in the manual 
        is current.  The manual shall contain at least the following: 
           (1) a concise listing of all federal and state laws, rules, 
        and regulations that apply to special education; 
           (2) the rights and procedural safeguards available to 
        students with disabilities and their parents or guardian; and 
           (3) best practice recommendations for school districts for 
        policies and procedures to meet the needs of students with 
        disabilities. 
           (b) The manual must be available within three months 
        following the state board of education's adoption of state 
        special education rules under section 23.  The commissioner 
        shall develop a plan to ensure that the manual is widely 
        available to parents, school staff, and other interested 
        individuals and organizations. 
           Sec. 29.  [SCHOOL BOARD MEMBER TRAINING.] 
           The commissioner of education, in consultation with the 
        Minnesota school boards association and the task force on 
        education of children with disabilities, shall develop a model 
        training curriculum for school board members in state and 
        federal special education statutes, rules, and regulations, and 
        in modifications and accommodations for students with 
        disabilities consistent with the Individuals with Disabilities 
        Education Act, United States Code, title 20, sections 1411 to 
        1420 (Part B), section 504 of the Rehabilitation Act of 1973, 
        United States Code, title 29, section 794, and the Americans 
        with Disabilities Act, Public Law Number 101-336.  The model 
        training curriculum shall be available to school board members 
        by January 1, 1995. 
           Sec. 30.  [SPECIAL LEVY FOR INDEPENDENT SCHOOL DISTRICT NO. 
        100, WRENSHALL.] 
           Notwithstanding Minnesota Statutes, section 124.321, or any 
        other law to the contrary, independent school district No. 100, 
        Wrenshall, may levy up to $40,000 for taxes payable in 1995 for 
        excess special education expenditures or for nonregular 
        transportation expenditures according to Minnesota Statutes, 
        section 124.223, subdivision 4, incurred in the 1993-1994 school 
        year.  Notwithstanding Minnesota Statutes, 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 Minnesota 
        Statutes, section 124.155. 
           Sec. 31.  [GRANTS FOR COMMUNITY LIVING PROGRAMS FOR YOUTHS 
        WITH DISABILITIES.] 
           A school district may apply to the commissioner of jobs and 
        training for a grant to provide individualized education and 
        training to youth with disabilities for making a transition from 
        school to post-secondary education, work, or community living.  
        Grantees shall provide the education and training according to 
        the transition plan contained in youths' individual education 
        plans.  To be eligible for a grant, a district must develop its 
        transition services in consultation with the community 
        transition interagency committee.  Grantees must use the grant 
        to contract with a center for independent living certified under 
        Minnesota Statutes, section 268A.11, or with another transition 
        program the commissioner approves, to provide appropriate 
        education and training under this section. 
           Sec. 32.  [APPROPRIATION; GRANTS FOR COMMUNITY LIVING 
        PROGRAMS.] 
           $250,000 is appropriated from the general fund in fiscal 
        year 1995 to the commissioner of jobs and training for the 
        purpose of providing grants under section 31.  This activity 
        must be transferred to the budget of the department of jobs and 
        training in the next biennial budget. 
           Sec. 33.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal year designated. 
           Subd. 2.  [TASK FORCE.] For the task force on education for 
        children with disabilities: 
              $25,000       .......      1994
           A portion of this appropriation may be used to pay for the 
        costs of adopting, amending, or repealing state board of 
        education rules according to section 23.  This appropriation may 
        not be used to compensate department staff assisting the task 
        force in carrying out its responsibilities.  This appropriation 
        expires February 15, 1995. 
           Subd. 3.  [STUDENT SUSPENSIONS AND EXPULSIONS STUDY.] For a 
        study of student suspensions and expulsions: 
              $40,000       .......      1995
           This appropriation does not cancel. 
           Sec. 34.  [REVISOR INSTRUCTION.] 
           In the next edition of Minnesota Statutes, the revisor 
        shall renumber sections 120.17, subdivision 11a, as 120.1701, 
        subdivision 3; 120.17, subdivision 11b, as 120.1701, subdivision 
        4; 120.17, subdivision 12, as 120.1701, subdivision 5; 120.17, 
        subdivision 14, as 120.1701, subdivision 12; 120.17, subdivision 
        14a, as 120.1701, subdivision 13; 120.17, subdivision 17, as 
        120.1701, subdivision 22. 
           Sec. 35.  [EFFECTIVE DATE.] 
           Sections 4, 23, 24, 26, and 33, subdivision 2, are 
        effective the day following final enactment. 
                                   ARTICLE 4 
                               COMMUNITY PROGRAMS 
           Section 1.  Minnesota Statutes 1992, section 120.101, is 
        amended by adding a subdivision to read: 
           Subd. 5c.  [EDUCATION RECORDS.] A school district from 
        which a student is transferring must transmit the student's 
        educational records, within ten business days of the date the 
        student withdraws, to the school district in which the student 
        is enrolling.  School districts must make reasonable efforts to 
        determine the school district in which a transferring student is 
        next enrolling in order to comply with this subdivision. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        121.702, subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE ORGANIZATION.] "Eligible organization" 
        means: 
           (1) a local unit of government including a statutory or 
        home rule charter city, township, county, or group of two or 
        more contiguous counties; 
           (2) an existing nonprofit organization organized under 
        chapter 317A; 
           (3) an educational institution; 
           (4) a private industry council; or 
           (5) a state agency; or 
           (6) a federal agency. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        121.702, subdivision 9, is amended to read: 
           Subd. 9.  [YOUTH WORKS TASK FORCE COMMISSION.] "Youth works 
        task force" "Commission" means the task force Minnesota 
        commission on national and community service established in 
        section 121.703. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        121.703, is amended to read: 
           121.703 [YOUTH WORKS TASK FORCE MINNESOTA COMMISSION ON 
        NATIONAL AND COMMUNITY SERVICE.] 
           Subdivision 1.  [CREATION.] The youth works task force 
        Minnesota commission on national and community service is 
        established to assist the governor and the legislature in 
        implementing sections 121.701 to 121.710 and federal 
        law.  Retroactive to the first Monday in January 1994, the terms 
        of the members of the first commission shall be, as nearly as 
        possible, one year for one-third of the members, two years for 
        one-third of the members, and three years for one-third of the 
        members.  The members of the first commission shall determine 
        the length of their terms by lot.  Thereafter, the terms of 
        commission members shall be for three years.  Commission members 
        may be reappointed upon the completion of their current term.  
        The terms, compensation, filling of vacancies, and removal of 
        members are governed by section 15.059 15.0575.  The youth works 
        task force commission may accept gifts and contributions from 
        public and private organizations. 
           Subd. 2.  [MEMBERSHIP.] The youth works task force consists 
        of 16 voting members.  The membership includes the commissioner 
        or designee of the departments of education, jobs and training, 
        and natural resources and the executive director of the higher 
        education coordinating board, and four persons appointed by the 
        governor from among the following agencies:  departments of 
        human services, health, corrections, agriculture, public safety, 
        finance, labor and industry, office of strategic and long-range 
        planning, Minnesota office of volunteer services, Minnesota high 
        technology council, Minnesota housing finance agency, 
        association of service delivery areas, and Minnesota Technology, 
        Inc.  The governor shall appoint four members, one each 
        representing a public or private sector labor union, business, 
        students, and parents, and the remaining four members from among 
        representatives of the following groups:  educators, senior 
        citizen organizations, local agencies working with youth service 
        corps programs, school-based community service programs, higher 
        education institutions, local educational agencies, volunteer 
        public safety organizations, education partnership programs, 
        public or nonprofit organizations experienced in youth 
        employment and training, and volunteer administrators, or other 
        organizations working with volunteers. (a) The commission 
        consists of 18 voting members.  Voting members shall include the 
        commissioner of education, a representative of the children's 
        cabinet elected by the members of the children's cabinet, and 
        the executive director of the higher education coordinating 
        board. 
           (b) The governor shall appoint 15 additional voting members.
        Eight of the voting members appointed by the governor shall 
        include a representative of public or nonprofit organizations 
        experienced in youth employment and training, organizations 
        promoting adult service and volunteerism, community-based 
        service agencies or organizations, local public or private 
        sector labor unions, local governments, business, a national 
        service program, and Indian tribes.  The remaining seven voting 
        members appointed by the governor shall include an individual 
        with expertise in the educational, training, and development 
        needs of youth, particularly disadvantaged youth; a youth or 
        young adult who is a participant in a higher education-based 
        service-learning program; a disabled individual representing 
        persons with disabilities; a youth who is out-of-school or 
        disadvantaged; an educator of primary or secondary students; an 
        educator from a higher education institution; and an individual 
        between the ages of 16 and 25 who is a participant or supervisor 
        in a youth service program. 
           (c) The governor shall appoint up to five ex officio 
        nonvoting members from among the following agencies or 
        organizations:  the departments of jobs and training, natural 
        resources, human services, health, corrections, agriculture, 
        public safety, finance, and labor and industry, the Minnesota 
        office of volunteer services, the housing finance agency, and 
        Minnesota Technology, Inc.  A representative of the corporation 
        for national and community service shall also serve as an ex 
        officio nonvoting member. 
           (d) Voting and ex officio nonvoting members may appoint 
        designees to act on their behalf.  The number of voting members 
        who are state employees shall not exceed 25 percent. 
           (e) The governor shall ensure that, to the extent possible, 
        the membership of the task force commission is balanced 
        according to geography, race, ethnicity, age, and gender.  The 
        speaker of the house and the majority leader of the senate shall 
        each appoint two legislators to be nonvoting members of the task 
        force commission. 
           Subd. 3.  [DUTIES.] (a) The youth works task force 
        commission shall: 
           (1) develop, with the assistance of the governor, the 
        commissioner of education, and affected state agencies, a 
        comprehensive state plan to provide services under sections 
        121.701 to 121.710 and federal law; 
           (2) actively pursue public and private funding sources for 
        services, including funding available under federal law; 
           (3) coordinate volunteer service learning programs within 
        the state; 
           (4) develop, in cooperation with the education and 
        employment transitions council and the commissioner of 
        education, volunteer service learning programs, including 
        curriculum, materials, and methods of instruction; 
           (5) work collaboratively with the education and employment 
        transitions council, the commissioner of education, schools, 
        public and private agencies, for-profit and nonprofit employers, 
        and labor unions to identify mentoring and service learning 
        opportunities, solicit and recruit participants for these 
        programs, and disseminate information on the programs; 
           (6) administer the youth works grant program under sections 
        121.704 to 121.709, with assistance from the commissioner of 
        education and the executive director of the higher education 
        coordinating board, including soliciting and approving grant 
        applications from eligible organizations, and administering 
        individual postservice benefits; 
           (7) establish an evaluation plan for programs developed and 
        services provided under sections 121.701 to 121.710; 
           (8) report to the governor, commissioner of education, and 
        legislature; and 
           (9) provide oversight and support for school, campus, and 
        community-based service programs; and 
           (10) administer the federal AmeriCorps program. 
           (b) Nothing in sections 121.701 to 121.710 precludes an 
        organization from independently seeking public or private 
        funding to accomplish purposes similar to those described in 
        paragraph (a). 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        121.705, is amended to read: 
           121.705 [YOUTH WORKS GRANTS.] 
           Subdivision 1.  [APPLICATION.] An eligible organization 
        interested in receiving a grant under sections 121.704 to 
        121.709 may prepare and submit to the youth works task force 
        commission an application that complies with section 121.706. 
           Subd. 2.  [GRANT AUTHORITY.] The youth works task force 
        commission shall use any state appropriation and any available 
        federal funds, including any grant received under federal law, 
        to award grants to establish programs for youth works meeting 
        the requirements of section 121.706.  At least one grant each 
        must be available for a metropolitan proposal, a rural proposal, 
        and a statewide proposal.  If a portion of the suburban 
        metropolitan area is not included in the metropolitan grant 
        proposal, the statewide grant proposal must incorporate at least 
        one suburban metropolitan area.  In awarding grants, the youth 
        works task force commission may select at least one residential 
        proposal and one nonresidential proposal, provided the proposals 
        meet or exceed the criteria in section 121.706. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        121.706, is amended to read: 
           121.706 [GRANT APPLICATIONS.] 
           Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
        seeking federal or state grant money under sections 121.704 to 
        121.709 shall prepare and submit to the youth works task 
        force commission an application that meets the requirements of 
        this section.  The youth works task force commission shall 
        develop, and the applying organizations shall comply with, the 
        form and manner of the application. 
           Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
        application shall: 
           (1) propose a program to provide participants the 
        opportunity to perform community service to meet specific unmet 
        community needs, and participate in classroom, work-based, and 
        service learning; 
           (2) assess the community's unmet educational, human, 
        environmental, and public safety needs, the resources and 
        programs available for meeting those needs, and how young people 
        participated in assessing community needs; 
           (3) describe the classroom educational component of the 
        program, including classroom hours per week, classroom time for 
        participants to reflect on the program experience, and 
        anticipated academic outcomes related to the service experience; 
           (4) describe the work to be performed, the ratio of youth 
        participants to crew leaders and mentors, and the expectations 
        and qualifications for crew leaders and mentors; 
           (5) describe local funds or resources available to meet the 
        match requirements of section 121.709; 
           (6) describe any funds available for the program from 
        sources other than the requested grant; 
           (7) describe any agreements with local businesses to 
        provide participants with work-learning opportunities and 
        mentors; 
           (8) describe any agreement with local post-secondary 
        educational institutions to offer participants course credits 
        for their community service learning experience; 
           (9) describe any agreement with a local high school or an 
        alternative learning center to provide remedial education, 
        credit for community service work and work-based learning, or 
        graduate equivalency degrees; 
           (10) describe any pay for service or other program delivery 
        mechanism that will provide reimbursement for benefits conferred 
        or recover costs of services participants perform; 
           (11) describe how local resources will be used to provide 
        support and assistance for participants to encourage them to 
        continue with the program, fulfill the terms of the contract, 
        and remain eligible for any postservice benefit; 
           (12) describe the arbitration mechanism for dispute 
        resolution required under section 121.707, subdivision 2; 
           (13) describe involvement of community leaders in 
        developing broad-based support for the program; 
           (14) describe the consultation and sign-off process to be 
        used with any local labor organization representing employees in 
        the area engaged in work similar to that proposed for the 
        program to ensure that no current employees or available 
        employment positions will be displaced by program participants; 
           (15) certify to the youth works task force commission and 
        to any certified bargaining representatives representing 
        employees of the applying organization that the project will not 
        decrease employment opportunities that would be available 
        without the project; will not displace current employees 
        including any partial displacement in the form of reduced hours 
        of work other than overtime, wages, employment benefits, or 
        regular seasonal work; will not impair existing labor 
        agreements; and will not result in the substitution of project 
        funding for preexisting funds or sources of funds for ongoing 
        work; 
           (16) describe the length of the required service period, 
        which may not be less than six months or more than two years, a 
        method to incorporate a participant's readiness to advance or 
        need for postservice financial assistance into individual 
        service requirements, and any opportunity for participating part 
        time or in another program; 
           (17) describe a program evaluation plan that contains cost 
        effectiveness measures, measures of participant success 
        including educational accomplishments, job placements, community 
        contributions, and ongoing volunteer activities, outcome 
        measures based on a preprogram and postprogram survey of 
        community rates of arrest, incarceration, teenage pregnancy, and 
        other indicators of youth in trouble, and a list of local 
        resources dedicated to reducing these rates; 
           (18) describe a three-year financial plan for maintaining 
        the program; 
           (19) describe the role of local youth in developing all 
        aspects of the grant proposal; and 
           (20) describe the process by which the local private 
        industry council participated in, and reviewed the grant 
        application. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        121.707, is amended to read: 
           121.707 [PROGRAM PROVISIONS.] 
           Subdivision 1.  [PARTICIPANT ELIGIBILITY.] (a) An 
        individual is eligible to participate in full-time youth 
        community service if the individual: 
           (1) is at least 17 to 24 years old; 
           (2) is a citizen of the United States or lawfully admitted 
        for permanent residency; 
           (3) is a permanent Minnesota resident as that term is used 
        in section 256.936, subdivision 4c, paragraph (d), clause (2); 
           (4) (3) is applying for service and has received a high 
        school diploma or its equivalent, or agrees to attain a high 
        school diploma or its equivalent while participating in the 
        program; and 
           (5) (4) agrees to act as an alumni volunteer or an alumni 
        mentor upon successfully completing the program and postprogram 
        education. 
           (b) An individual is eligible to participate in part-time 
        youth community service if the individual is at least 15 to 24 
        years old and meets the requirements under paragraph (a), 
        clauses (2) to (5) (4). 
           Subd. 2.  [TERMS OF SERVICE.] (a) A participant shall agree 
        to perform community service for the period required unless the 
        participant is unable to complete the terms of service for the 
        reason provided in paragraph (b). 
           An agreement to perform community service must be in the 
        form of a written contract between the participant and the 
        grantee organization.  Terms of the contract must include a 
        length of service between six months and two years, the 
        participant's education goals and commitment, the anticipated 
        date of completion, dismissal for cause, including failure to 
        fully participate in the education component, and the exclusive 
        right to challenge a dismissal for cause through binding 
        arbitration.  The arbitrator must be chosen jointly by the 
        grantee organization and the participant from the community or, 
        if agreement cannot be reached, an arbitrator must be determined 
        from a list of arbitrators provided by the American Arbitration 
        Association.  The sole remedy available to the participant 
        through arbitration is reinstatement to the program and 
        eligibility for postservice benefits.  The parent or guardian of 
        a minor shall consent in writing to the contract between the 
        participant and the grantee organization. 
           (b) If the grantee organization releases a participant from 
        completing a term of service in a program receiving assistance 
        under sections 121.704 to 121.709 for compelling personal 
        circumstances as demonstrated by the participant, or if the 
        program in which the participant serves does not receive 
        continued funding for any reason, the grantee organization may 
        provide the participant with that portion of the financial 
        assistance described in subdivision 3 that corresponds to the 
        quantity of the service obligation completed by the individual. 
           If the grantee organization terminates a participant for 
        cause or a participant resigns without demonstrating compelling 
        personal circumstances under this section, no postservice 
        benefit under subdivision 3 may be paid. 
           (c) A participant performing part-time service under 
        sections 121.701 to 121.710 shall serve at least two weekends 
        each month and two weeks during the year, or at least an average 
        of nine hours per week each year.  A part-time participant shall 
        serve at least 900 hours during a period of not more than two 
        years, or three years if enrolled in an institution of higher 
        education.  A participant performing full-time service under 
        sections 121.701 to 121.710 shall serve for not less than 40 
        hours per week at least 1,700 hours during a period of not less 
        than nine months, or more than one year. 
           (d) Notwithstanding any other law to the contrary, for 
        purposes of tort liability under sections 3.732 and 3.736, while 
        participating in a program a participant is an employee of the 
        state. 
           (e) Participants performing community service in a program 
        are not public employees for purposes of chapter 43A, 179A, 197, 
        353, or any other law governing hiring or discharging of public 
        employees. 
           Subd. 3.  [POSTSERVICE BENEFIT.] (a) Each participant shall 
        receive a nontransferable postservice benefit upon successfully 
        completing the program.  The benefit must be $2,000 per year of 
        part-time service or $5,000 per year of full-time service not 
        less than $4,725 per year of full-time service or prorated for 
        part-time service or for partial service of at least 900 hours. 
           (b) In the event that a program does not receive a federal 
        grant that provides a postservice benefit, the participants in 
        the program shall receive a postservice benefit equal in value 
        to one-half the amount provided under paragraph (a). 
           (c) Nothing in this subdivision prevents a grantee 
        organization from using funds from nonfederal or nonstate 
        sources to increase the value of postservice benefits above the 
        value described in paragraph (a). 
           (c) The higher education coordinating board shall establish 
        an account for depositing funds for postservice benefits.  If a 
        participant does not use a postservice benefit according to 
        subdivision 4 within seven years after completing the program, 
        the amount of the postservice benefit shall be used to provide a 
        postservice benefit to another eligible participant. 
           (d) The state shall provide an additional postservice 
        benefit to any participant who successfully completes the 
        program.  The benefit must be a credit of five points to be 
        added to the competitive open rating of a participant who 
        obtains a passing grade on a civil service examination under 
        chapter 43A.  The benefit is available for five years after 
        completing the community service. 
           Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
        benefit for a participant provided under subdivision 3, 
        paragraph (a), (b), or (c), must be available for five seven 
        years after completing the program and may only be used for: 
           (1) paying a student loan; 
           (2) costs of attending an institution of higher education; 
        or 
           (3) expenses incurred by a student in an approved youth 
        apprenticeship program under chapter 126B, or in an a registered 
        apprenticeship program approved by the department of labor and 
        industry. 
        Financial assistance provided under this subdivision must be in 
        the form of vendor payments whenever possible.  Any postservice 
        benefits provided by federal funds or vouchers may be used as a 
        downpayment on, or closing costs for, purchasing a first home. 
           (b) Postservice benefits are to be used to develop skills 
        required in occupations where numbers of jobs are likely to 
        increase.  The youth works task force commission, in 
        consultation with the education and employment transitions 
        council, shall determine how the benefits may be used in order 
        to best prepare participants with skills that build on their 
        service learning and equip them for meaningful employment. 
           (c) The postservice benefit shall not be included in 
        determining financial need when establishing eligibility or 
        award amounts for financial assistance programs under chapter 
        136A. 
           Subd. 5.  [LIVING ALLOWANCE.] (a) A participant in a 
        full-time community service program shall receive a monthly 
        stipend of not less than $500.  An eligible organization may 
        provide participants with additional amounts from nonfederal or 
        nonstate sources.  The amount of the living allowance may be 
        prorated for part-time participants. 
           (b) Nothing in this subdivision requires an existing 
        program to decrease any stipend, salary, or living allowance 
        provided to a participant under the program. 
           (c) In addition to the living allowance provided under 
        paragraph (a), a grantee organization shall provide health and 
        dental and child care coverage to each participant in a 
        full-time youth works program who does not otherwise have access 
        to health or dental or child care coverage.  The state shall 
        include the cost of group health and dental child care coverage 
        in the grant to the eligible organization. 
           Subd. 6.  [PROGRAM TRAINING.] (a) The youth works task 
        force commission shall, within available resources, ensure an 
        opportunity for each participant to have three weeks of training 
        in a residential setting.  If offered, each training session 
        must: 
           (1) orient each participant in the nature, philosophy, and 
        purpose of the program; 
           (2) build an ethic of community service through general 
        community service training; and 
           (3) provide additional training as it determines necessary. 
           (b) Each grantee organization shall also train participants 
        in skills relevant to the community service opportunity. 
           Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
        grantee organization shall assess the educational level of each 
        entering participant.  Each grantee shall work to enhance the 
        educational skills of each participant.  The youth works task 
        force commission may coordinate or contract with educational 
        institutions or other providers for educational services and 
        evaluation.  All grantees shall give priority to educating and 
        training participants who do not have a high school diploma or 
        its equivalent, or who cannot afford post-secondary training and 
        education. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        121.708, is amended to read: 
           121.708 [PRIORITY.] 
           The youth works task force commission shall give priority 
        to an eligible organization proposing a program that meets the 
        goals of sections 121.704 to 121.707, and that: 
           (1) involves youth in a meaningful way in all stages of the 
        program, including assessing community needs, preparing the 
        application, and assuming postservice leadership and mentoring 
        responsibilities; 
           (2) serves a community with significant unmet needs; 
           (3) provides an approach that is most likely to reduce 
        arrest rates, incarceration rates, teenage pregnancy, and other 
        indicators of troubled youth; 
           (4) builds linkages with existing, successful programs; and 
           (5) can be operational quickly. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        121.709, is amended to read: 
           121.709 [MATCH REQUIREMENTS.] 
           A grant awarded through the youth works program must be 
        matched at $2 of grant funds for at least $1 of applicant 
        funds.  Youth works grant funds must be used for the living 
        allowance, cost of employer taxes under sections 3111 and 3301 
        of the Internal Revenue Code of 1986, workers' compensation 
        coverage, and health and dental benefits for each program 
        participant.  Applicant funds resources, from sources and in a 
        form determined by the youth works task force commission, must 
        be used to pay provide for crew leaders, administration, all 
        other program operating costs, including such costs as supplies, 
        materials, and transportation, and salaries and benefits of 
        those staff directly involved in the operation, internal 
        monitoring, and evaluation of the program.  Administrative 
        expenses must not exceed seven five percent of total program 
        costs.  To the extent that administrative costs are less than 
        seven percent, an amount equal to the difference between the 
        percent expended and seven percent shall be applied to the local 
        match requirement in this section. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        121.710, is amended to read: 
           121.710 [EVALUATION AND REPORTING REQUIREMENTS.] 
           Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
        organization shall report to the youth works task force 
        commission at the time and on the matters requested by the youth 
        works task force commission. 
           Subd. 2.  [INTERIM REPORT.] The youth works task force 
        commission shall report semiannually to the legislature with 
        interim recommendations to change the program. 
           Subd. 3.  [FINAL REPORT.] The youth works task force 
        commission shall present a final report to the legislature by 
        January 1, 1998, summarizing grantee evaluations, reporting on 
        individual participants and participating grantee organizations, 
        and recommending any changes to improve or expand the program. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        121.831, subdivision 9, is amended to read: 
           Subd. 9.  [CHILD RECORDS.] (a) A record of a child's 
        progress and development shall be maintained in the child's 
        cumulative record while enrolled in the learning readiness 
        program.  The cumulative record shall be used for the purpose of 
        planning activities to suit individual needs and shall become 
        part of the child's permanent record.  The cumulative record is 
        private data under chapter 13.  Information in the record may be 
        disseminated to an educator or service provider only to the 
        extent that that person has a need to know the information.  
           (b) An educator or service provider may transmit 
        information in the child's cumulative record to an educator or 
        service provider in another program for young children when the 
        child applies to enroll in that other program. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        121.8355, subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
        a family services collaborative, a minimum of one school 
        district, one county, and one public health entity must agree in 
        writing to provide coordinated family services and commit 
        resources to an integrated fund.  Collaboratives are expected to 
        have broad community representation, which may include other 
        local providers, including additional school districts, 
        counties, and public health entities, other 
        municipalities, public libraries, existing culturally specific 
        community organizations, local health organizations, private and 
        nonprofit service providers, child care providers, local 
        foundations, community-based service groups, businesses, local 
        transit authorities or other transportation providers, community 
        action agencies under section 268.53, senior citizen volunteer 
        organizations, and sectarian organizations that provide 
        nonsectarian services. 
           (b) Community-based collaboratives composed of 
        representatives of schools, local businesses, local units of 
        government, parents, students, clergy, health and social 
        services providers, youth service organizations, and existing 
        culturally specific community organizations may plan and develop 
        services for children and youth.  A community-based 
        collaborative must agree to collaborate with county, school 
        district, and public health entities.  Their services may 
        include opportunities for children or youth to improve child 
        health and development, reduce barriers to adequate school 
        performance, improve family functioning, provide community 
        service, enhance self esteem, and develop general employment 
        skills.  
           Sec. 13.  Minnesota Statutes 1993 Supplement, section 
        121.885, subdivision 1, is amended to read: 
           Subdivision 1.  [SERVICE LEARNING AND WORK-BASED LEARNING 
        PROGRAMS STUDY.] The youth works task force Minnesota commission 
        on national and community service, established in section 
        121.703, shall assist the commissioner of education in studying 
        how to combine community service activities and service learning 
        with work-based learning programs. 
           Sec. 14.  Minnesota Statutes 1993 Supplement, section 
        121.885, subdivision 2, is amended to read: 
           Subd. 2.  [SERVICE LEARNING PROGRAMS DEVELOPED.] The 
        commissioner, in consultation with the task force commission, 
        shall develop a service learning program curriculum that 
        includes a policy framework and strategies for youth community 
        service and an infrastructure for mentoring youth.  The 
        commissioner shall include in the curriculum at least the 
        following: 
           (1) youth community service strategies that enable young 
        people to make significant contributions to the welfare of their 
        community through such organizations as schools, colleges, 
        government agencies, and community-based organizations or 
        through individual efforts; 
           (2) mentoring strategies that enable young people to be 
        matched with caring, responsible individuals who can encourage 
        and guide the young people in their personal growth and 
        development; 
           (3) guidelines, criteria, and procedures for community 
        service programs that incorporate the results of the study in 
        subdivision 1; and 
           (4) criteria for community service activities and service 
        learning. 
           Sec. 15.  Minnesota Statutes 1993 Supplement, section 
        121.885, subdivision 4, is amended to read: 
           Subd. 4.  [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 
        The youth works task force Minnesota commission on national and 
        community service established in section 121.703, in cooperation 
        with the commissioner and the higher education coordinating 
        board, shall provide for those participants who successfully 
        complete youth community service under sections 121.703 to 
        121.709, the following: 
           (1) for those who have a high school diploma or its 
        equivalent, an opportunity to participate in a youth 
        apprenticeship program at a community or technical college; and 
           (2) for those who are post-secondary students, an 
        opportunity to participate in an educational program that 
        supplements post-secondary courses leading to a degree or a 
        statewide credential of academic and occupational proficiency. 
           (b) Participants who successfully complete a youth 
        community service program under sections 121.704 to 121.710 are 
        eligible to receive an education voucher as provided under 
        section 121.707, subdivision 4.  The voucher recipient may apply 
        the voucher toward the cost of the recipient's tuition and other 
        education-related expenses at a public post-secondary school 
        under paragraph (a). 
           (c) The youth works task force Minnesota commission on 
        national and community service, in cooperation with the state 
        board of technical colleges, shall establish a mechanism to 
        transfer credit earned in a youth apprenticeship program between 
        the technical colleges and other post-secondary institutions 
        offering applied associate degrees. 
           Sec. 16.  Minnesota Statutes 1992, section 124.26, 
        subdivision 1b, is amended 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 through 
        the 1999-2000 school year and over 18 years of age beginning 
        with the 2000-2001 school year 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 to a learner 
        for instruction subsidized paid under this section, except for a 
        security deposit to assure return of materials, supplies, and 
        equipment. 
           Sec. 17.  Minnesota Statutes 1993 Supplement, section 
        124.26, subdivision 1c, is amended to read: 
           Subd. 1c.  [PROGRAM APPROVAL.] (a) To receive aid under 
        this section, a district, a consortium of districts, or a 
        private nonprofit organization must submit an application by 
        June 1 describing the program, on a form provided by the 
        department.  The program must be approved by the commissioner 
        according to the following criteria:  
           (1) how the needs of different levels of learning 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 money 
        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.  
           (b) The commissioner may contract with grant adult basic 
        education funds to 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 this provision must be approved and funded 
        according to the same criteria used for district programs. 
           (c) Adult basic education programs may be approved under 
        this subdivision for up to five years.  Five-year program 
        approval shall be granted to an applicant who has demonstrated 
        the capacity to: 
           (1) offer comprehensive learning opportunities and support 
        service choices appropriate for and accessible to adults at all 
        basic skill need levels; 
           (2) provide a participatory and experimental experiential 
        learning approach based on the strengths, interests, and needs 
        of each adult, that enables adults with basic skill needs to: 
           (i) identify, plan for, and evaluate their own progress 
        toward achieving their defined educational and occupational 
        goals; 
           (ii) master the basic academic reading, writing, and 
        computational skills, as well as the problem-solving, decision 
        making, interpersonal effectiveness, and other life and learning 
        skills they need to function effectively in a changing society; 
           (iii) locate and be able to use the health, governmental, 
        and social services and resources they need to improve their own 
        and their families' lives; and 
           (iv) continue their education, if they desire, to at least 
        the level of secondary school completion, with the ability to 
        secure and benefit from continuing education that will enable 
        them to become more employable, productive, and responsible 
        citizens; 
           (3) plan, coordinate, and develop cooperative agreements 
        with community resources to address the needs that the adults 
        have for support services, such as transportation, flexible 
        course scheduling, convenient class locations, and child care; 
           (4) collaborate with business, industry, labor unions, and 
        employment-training agencies, as well as with family and 
        occupational education providers, to arrange for resources and 
        services through which adults can attain economic 
        self-sufficiency; 
           (5) provide sensitive and well trained adult education 
        personnel who participate in local, regional, and statewide 
        adult basic education staff development events to master 
        effective adult learning and teaching techniques; 
           (6) participate in regional adult basic education peer 
        program reviews and evaluations; and 
           (7) submit accurate and timely performance and fiscal 
        reports. 
           Sec. 18.  Minnesota Statutes 1993 Supplement, section 
        124.26, subdivision 2, is amended to read: 
           Subd. 2.  [ACCOUNTS; REVENUE; AID.] Each district or, group 
        of districts, or private nonprofit organization providing adult 
        basic education programs shall establish and maintain accounts 
        separate from all other district accounts for the receipt and 
        disbursement of all funds related to these programs.  All aid 
        revenue received pursuant to this section shall be utilized 
        solely for the purposes of adult basic education programs.  In 
        no case shall federal and state aid equal more than 100 percent 
        of the actual cost of providing these programs. 
           Sec. 19.  Minnesota Statutes 1992, section 124.2601, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AID.] Adult basic education aid for each 
        district with an eligible approved program equals 65 percent of 
        the general education formula allowance times the number of 
        full-time equivalent students in its adult basic education 
        program. 
           Sec. 20.  Minnesota Statutes 1992, section 124.2601, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVENUE.] Adult basic education revenue is equal 
        to the sum of a district's an approved program's adult basic 
        education aid and its adult basic education levy. 
           Sec. 21.  Minnesota Statutes 1992, section 124.2601, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PRORATION.] If the total appropriation for adult 
        basic education aid is insufficient to pay all districts 
        approved programs the full amount of aid earned, the department 
        of education shall proportionately reduce each district's 
        approved program's aid. 
           Sec. 22.  Minnesota Statutes 1993 Supplement, section 
        124.2711, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] The revenue for early childhood 
        family education programs for a school district equals $101.25 
        for 1993 and later fiscal years times the greater of: 
           (1) 150; or 
           (2) the number of people under five years of age residing 
        in the school district on September October 1 of the previous 
        school year. 
           Sec. 23.  Minnesota Statutes 1992, section 124.2711, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [RESERVE ACCOUNT.] Early childhood family 
        education revenue must be maintained in a reserve account within 
        the community service fund.  
           Sec. 24.  Minnesota Statutes 1993 Supplement, section 
        124.2713, subdivision 5, is amended to read: 
           Subd. 5.  [YOUTH SERVICE REVENUE.] Youth service program 
        revenue is available to a district that has implemented a youth 
        development plan and a youth service program.  Youth service 
        revenue equals 85 cents for fiscal year 1994, $1 for fiscal year 
        1995, and 85 cents for fiscal year 1996 and thereafter, times 
        the greater of 1,335 or the population of the district. 
           Sec. 25.  Minnesota Statutes 1992, section 124.2713, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [RESERVE ACCOUNT.] Community education revenue 
        must be maintained in a reserve account within the community 
        service fund.  
           Sec. 26.  Minnesota Statutes 1993 Supplement, section 
        124.2714, is amended to read: 
           124.2714 [ADDITIONAL COMMUNITY EDUCATION REVENUE.] 
           (a) A district that is eligible under section 124.2713, 
        subdivision 2, may levy an amount up to the amount authorized by 
        Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
        (2).  
           (b) Beginning with levies for fiscal year 1995, this levy 
        must be reduced each year by the amount of any increase in the 
        levying district's general community education revenue under 
        section 124.2713, subdivision 3, for that fiscal year over the 
        amount received by the district under section 124.2713, 
        subdivision 3, for fiscal year 1994. 
           (c) The proceeds of the levy may be used for the purposes 
        set forth in section 124.2713, subdivision 8. 
           Sec. 27.  Minnesota Statutes 1992, section 124C.49, is 
        amended to read: 
           124C.49 [DESIGNATION AS CENTER.] 
           The commissioner of education, in cooperation with the 
        state board of education, shall establish a process for state 
        designation and approval of area learning centers that meet the 
        provisions of sections 124C.45 to 124C.48.  Any process for 
        designating and approving an area learning center must emphasize 
        the importance of having the area learning center serve students 
        who have dropped out of school, are homeless, are eligible to 
        receive free or reduced priced lunch, have been suspended or 
        expelled, have been declared truant or are pregnant or parents. 
           Sec. 28.  Minnesota Statutes 1993 Supplement, section 
        126.22, subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
        according to subdivision 2 may enroll in any program approved by 
        the state board of education under Minnesota Rules, part 
        3500.3500, or area learning centers under sections 124C.45 to 
        124C.48, or according to section 121.11, subdivision 12. 
           (b) A pupil who is eligible according to subdivision 2 and 
        who is between the ages of 16 and 21 may enroll in 
        post-secondary courses under section 123.3514. 
           (c) A pupil who is eligible under subdivision 2, may enroll 
        in any public elementary or secondary education program.  
        However, a person who is eligible according to subdivision 2, 
        clause (b), may enroll only if the school board has adopted a 
        resolution approving the enrollment. 
           (d) A pupil who is eligible under subdivision 2, may enroll 
        part time, if 16 years of age or older, or full time in any 
        nonprofit, nonpublic, nonsectarian school that has contracted 
        with the serving school district of residence to provide 
        educational services.  
           (e) A pupil who is between the ages of 16 and 21 may enroll 
        in any adult basic education programs approved under section 
        124.26 and operated under the community education program 
        contained in section 121.88. 
           Sec. 29.  Minnesota Statutes 1993 Supplement, section 
        126.22, subdivision 3a, is amended to read: 
           Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
        least 16 years of age, who is eligible under subdivision 2, 
        clause (a), and who has been enrolled only in a public school, 
        if the pupil has been enrolled in any school, during the year 
        immediately before transferring under this subdivision, may 
        transfer to any nonprofit, nonpublic school that has contracted 
        with the serving school district of residence to provide 
        nonsectarian educational services.  Such a school must enroll 
        every eligible pupil who seeks to transfer to the school under 
        this program subject to available space. 
           Sec. 30.  Minnesota Statutes 1993 Supplement, section 
        126.22, subdivision 4, is amended to read: 
           Subd. 4.  [PUPIL ENROLLMENT.] Any eligible pupil may apply 
        to enroll in an eligible program.  Approval of the resident 
        district is not required for: 
           (1) an eligible pupil to enroll in any eligible program in 
        a nonresident district under subdivision 3 or 3a or an area 
        learning center established under section 124C.45; or 
           (2) an eligible pupil under subdivision 2, to enroll in an 
        adult basic education program approved under section 124.26. 
           Sec. 31.  Minnesota Statutes 1992, section 126.23, is 
        amended to read: 
           126.23 [AID FOR PRIVATE ALTERNATIVE PROGRAMS.] 
           If a pupil enrolls in an alternative program, eligible 
        under section 126.22, subdivision 3, paragraph (d), or 
        subdivision 3a, operated by a private organization that has 
        contracted with a school district to provide educational 
        services for eligible pupils under section 126.22, subdivision 
        2, the resident district contracting with the private 
        organization must reimburse the provider an amount equal to at 
        least 88 percent of the basic revenue of the district for each 
        pupil attending the program full time.  For a pupil attending 
        the program part time, basic revenue paid to the program shall 
        be reduced proportionately, according to the amount of time the 
        pupil attends the program, and basic revenue paid to the 
        district shall be reduced accordingly.  Pupils for whom a 
        district provides reimbursement may not be counted by the 
        district for any purpose other than computation of basic 
        revenue, according to section 124A.22, subdivision 2.  If 
        payment is made to a district or program for a pupil under this 
        section, the department of education shall not make a payment 
        for the same pupil under section 126.22, subdivision 8. 
           Sec. 32.  Minnesota Statutes 1992, section 126.69, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM GOALS.] The department of 
        education, in consultation with the state curriculum advisory 
        committee, must develop guidelines and model plans for parental 
        involvement programs that will: 
           (1) engage the interests and talents of parents or 
        guardians in recognizing and meeting the emotional, 
        intellectual, and physical needs of their school-age children; 
           (2) promote healthy self-concepts among parents or 
        guardians and other family members; 
           (3) offer parents or guardians a chance to share and learn 
        about educational skills, techniques, and ideas; 
           (4) provide creative learning experiences for parents or 
        guardians and their school-age children, including involvement 
        from parents or guardians of color; and 
           (5) encourage parents to actively participate in their 
        district's curriculum advisory committee under section 126.666 
        in order to assist the school board in improving children's 
        education programs; and 
           (6) encourage parents to help in promoting school 
        desegregation/integration. 
           Sec. 33.  Minnesota Statutes 1992, section 126.69, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
        model plans must include: 
           (1) educational opportunities for families that enhance 
        children's learning development; 
           (2) educational programs for parents or guardians on 
        families' educational responsibilities and resources; 
           (3) the hiring, training, and use of parental involvement 
        liaison workers to coordinate family involvement activities and 
        to foster communication among families, educators, and students; 
           (4) curriculum materials and assistance in implementing 
        home and community-based learning activities that reinforce and 
        extend classroom instruction and student motivation; 
           (5) technical assistance, including training to design and 
        carry out family involvement programs; 
           (6) parent resource centers; 
           (7) parent training programs and reasonable and necessary 
        expenditures associated with parents' attendance at training 
        sessions; 
           (8) reports to parents on children's progress; 
           (9) use of parents as classroom volunteers, or as 
        volunteers in before and after school programs for school-age 
        children, tutors, and aides; 
           (10) soliciting parents' suggestions in planning, 
        developing, and implementing school programs; 
           (11) educational programs and opportunities for parents or 
        guardians that are multicultural, gender fair, and disability 
        sensitive; and 
           (12) involvement in a district's curriculum advisory 
        committee or a school building team under section 126.666; and 
           (13) opportunities for parent involvement in developing, 
        implementing, or evaluating school and district 
        desegregation/integration plans. 
           Sec. 34.  Minnesota Statutes 1992, section 126.77, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [VIOLENCE PREVENTION CURRICULUM.] (a) The 
        commissioner of education, in consultation with the 
        commissioners of health and human services, state minority 
        councils, battered women's programs, sexual assault centers, 
        representatives of religious communities, and the assistant 
        commissioner of the office of drug policy and violence 
        prevention, shall assist districts on request in developing or 
        implementing a violence prevention program for students in 
        kindergarten to grade 12 that can be integrated into existing 
        curriculum.  The purpose of the program is to help students 
        learn how to resolve conflicts within their families and 
        communities in nonviolent, effective ways.  
           (b) Each district is encouraged to integrate into its 
        existing curriculum a program for violence prevention that 
        includes at least: 
           (1) a comprehensive, accurate, and age appropriate 
        curriculum on violence prevention, nonviolent conflict 
        resolution, and sexual, racial, and cultural harassment that 
        promotes equality, respect, understanding, effective 
        communication, individual responsibility, thoughtful decision 
        making, positive conflict resolution, useful coping skills, 
        critical thinking, listening and watching skills, and personal 
        safety; 
           (2) planning materials, guidelines, and other accurate 
        information on preventing physical and emotional violence, 
        identifying and reducing the incidence of sexual, racial, and 
        cultural harassment, and reducing child abuse and neglect; 
           (3) a special parent education component of early childhood 
        family education programs to prevent child abuse and neglect and 
        to promote positive parenting skills, giving priority to 
        services and outreach programs for at-risk families; 
           (4) involvement of parents and other community members, 
        including the clergy, business representatives, civic leaders, 
        local elected officials, law enforcement officials, and the 
        county attorney; 
           (5) collaboration with local community services, agencies, 
        and organizations that assist in violence intervention or 
        prevention, including family-based services, crisis services, 
        life management skills services, case coordination services, 
        mental health services, and early intervention services; 
           (6) collaboration among districts and ECSUs; 
           (7) targeting early adolescents for prevention efforts, 
        especially early adolescents whose personal circumstances may 
        lead to violent or harassing behavior; and 
           (8) opportunities for teachers to receive in-service 
        training or attend other programs on strategies or curriculum 
        designed to assist students in intervening in or preventing 
        violence in school and at home; and 
           (9) administrative policies that reflect, and a staff that 
        models, nonviolent behaviors that do not display or condone 
        sexual, racial, or cultural harassment. 
           (c) The department may provide assistance at a neutral site 
        to a nonpublic school participating in a district's program. 
           Sec. 35.  Minnesota Statutes 1992, section 126.78, is 
        amended to read: 
           126.78 [VIOLENCE PREVENTION EDUCATION GRANTS.] 
           Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
        commissioner of education, after consulting with the assistant 
        commissioner of the office of drug policy and violence 
        prevention, shall establish a violence prevention education 
        grant program to enable a school district, an education 
        district, or a group of districts that cooperate for a 
        particular purpose to develop and implement or to continue a 
        violence prevention program for students in kindergarten through 
        grade 12 that can be integrated into existing curriculum.  A 
        district or group of districts that elects to develop and 
        implement or to continue a violence prevention program under 
        section 126.77 is eligible to apply for a grant under this 
        section. 
           Subd. 2.  [GRANT APPLICATION.] To be eligible to receive a 
        grant, a school district, an education district, or a group of 
        districts that cooperate for a particular purpose must submit an 
        application to the commissioner in the form and manner and 
        according to the timeline established by the commissioner.  The 
        application must describe how the applicant will:  (1) continue 
        or integrate into its existing K-12 curriculum a program for 
        violence prevention that contains the program components listed 
        in section 126.77; (2) collaborate with local organizations 
        involved in violence prevention and intervention; and (3) 
        structure the program to reflect the characteristics of the 
        children, their families and the community involved in the 
        program.  The commissioner may require additional information 
        from the applicant.  When reviewing the applications, the 
        commissioner shall determine whether the applicant has met the 
        requirements of this subdivision. 
           Subd. 3.  [GRANT AWARDS.] The commissioner may award grants 
        for a violence prevention education program to eligible 
        applicants as defined in subdivision 2.  Grant amounts may not 
        exceed $3 per actual pupil unit in the district or group of 
        districts in the prior school year.  Grant recipients should be 
        geographically distributed throughout the state. 
           Subd. 4.  [GRANT PROCEEDS.] A successful applicant shall 
        use the grant money to develop and implement or to continue a 
        violence prevention program according to the terms of the grant 
        application. 
           Sec. 36.  Minnesota Statutes 1992, section 127.27, 
        subdivision 5, is amended to read: 
           Subd. 5.  "Expulsion" means an action taken by a school 
        board to prohibit an enrolled pupil from further attendance for 
        a period that shall not extend beyond the an amount of time 
        equal to one school year from the date a pupil is expelled. 
           Sec. 37.  Minnesota Statutes 1992, section 127.31, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school board 
        may prepare and enforce an admission or readmission plan for any 
        pupil who is suspended, excluded or expelled from school.  The 
        plan may include measures to improve the pupil's behavior and 
        require parental involvement in the admission or readmission 
        process, and may indicate the consequences to the pupil of not 
        improving the pupil's behavior. 
           Sec. 38.  Minnesota Statutes 1992, section 127.38, is 
        amended to read: 
           127.38 [POLICIES TO BE ESTABLISHED.] 
           (a) The commissioner of education shall promulgate 
        guidelines to assist each school board.  Each school board shall 
        establish uniform criteria for dismissal and adopt policies and 
        rules in writing to effectuate the purposes of sections 127.26 
        to 127.39.  The policies will emphasize the prevention of 
        dismissal action through early detection of problems.  The 
        policies shall recognize the continuing responsibility of the 
        school for the education of the pupil during the dismissal 
        period and help prepare the pupil for readmission.  
           (b) The commissioner shall actively encourage and assist 
        school districts to cooperatively establish alternative learning 
        programs that offer instruction to pupils who are dismissed from 
        school for willfully engaging in dangerous, disruptive, or 
        violent behavior, including for possessing a firearm in a school 
        zone. 
           Sec. 39.  Minnesota Statutes 1992, section 272.02, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PROPERTY LEASED TO SCHOOL DISTRICTS.] Property 
        that is leased or rented to a school district is exempt from 
        taxation if it meets the following requirements: 
           (1) the lease must be for a period of at least 12 
        consecutive months; 
           (2) the terms of the lease must require the school district 
        to pay a nominal consideration for use of the building; 
           (3) the school district must use the property to provide 
        direct instruction in any grade from kindergarten through grade 
        12; special education for handicapped children; adult basic and 
        continuing education as described in section 124.26; preschool 
        and early childhood family education; or community education 
        programs, including provision of administrative services 
        directly related to the educational program at that site; and 
           (4) the lease must provide that the school district has the 
        exclusive use of the property during the lease period. 
           Sec. 40.  Laws 1993, chapter 224, article 4, section 44, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ADULT GRADUATION AID.] For adult graduation aid: 
             $1,827,000     .....     1994
             $1,986,000 $2,195,000     .....     1995
           The 1994 appropriation includes $204,000 for 1993 and 
        $1,623,000 for 1994.  
           The 1995 appropriation includes $286,000 for 1994 and 
        $1,700,000 $1,909,000 for 1995. 
           In the event that the appropriation in either year is 
        insufficient, the adult graduation aid paid to a school district 
        and to a higher education institution shall be prorated equally. 
           Sec. 41.  Laws 1993, chapter 224, article 4, section 44, 
        subdivision 20, is amended to read: 
           Subd. 20.  [LOCAL COLLABORATIVES.] (a) For grants to local 
        collaboratives according to section 43, subdivisions 2 and 3: 
             $5,000,000    .....    1994
           $1,500,000 is for collaborative planning grants. 
           Up to $130,000 of the sum listed above is for the 
        legislative coordinating commission for purposes of carrying out 
        the responsibilities under Minnesota Statutes, section 3.873. 
           Up to $400,000 is for the office of strategic and 
        long-range planning for development of a statewide children's 
        service database and for staffing the children's cabinet. 
           Any portion of this sum not spent on planning grants shall 
        be used for implementation grants. 
           $3,500,000 is for collaborative implementation grants. 
           (b) Of the appropriation, $150,000 is for grants targeted 
        to assist in providing collaborative children's library service 
        programs.  To be eligible, a family services or community-based 
        collaborative planning or implementation grant recipient must 
        collaborate with at least one public library and one child or 
        family organization.  The public library must involve the 
        regional public library system and multitype library system to 
        which it belongs in the planning and provide for an evaluation 
        of the program. 
           (c) The amounts appropriated under this subdivision do not 
        cancel but are available until June 30, 1996. 
           Sec. 42.  [EFFECTIVE DATES.] 
           Section 24 is effective for revenue for fiscal year 1995 
        and thereafter.  Section 41 is effective the day following final 
        enactment. 
                                   ARTICLE 5 
                                   FACILITIES 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        124.243, subdivision 8, is amended to read: 
           Subd. 8.  [FUND TRANSFERS.] (a) Money in the account for 
        capital expenditure facilities revenue must not be transferred 
        into any other account or fund, except as specified in this 
        subdivision. 
           (b) The school board may, by resolution, transfer money 
        into the debt redemption fund to pay the amounts needed to meet, 
        when due, principal and interest payments on certain obligations 
        issued according to chapter 475. 
           (c) Each fiscal year, if a district does not have any 
        obligations outstanding under chapter 475, has not levied under 
        section 124.239, subdivision 3 or 5, and has not received 
        revenue under section 124.83, a school board may use up to 
        one-third of its capital expenditure facilities revenue for 
        equipment uses under section 124.244. 
           (d) Notwithstanding paragraph (c), a school board may 
        transfer all or a part of its capital expenditure facilities 
        revenue to its capital expenditure equipment account if: 
           (1) the district has only one facility and that facility is 
        less than ten years old; or 
           (2) the district receives approval from the commissioner to 
        make the transfer. 
           (d) (e) In considering approval of a transfer under 
        paragraph (c) (d), clause (2), the commissioner must consider 
        the district's facility needs. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        124.244, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE AMOUNT.] (a) For fiscal years 1994 
        and year 1995, the capital expenditure equipment revenue for 
        each district equals $63 $66 times its actual pupil units for 
        the school year. 
           (b) For fiscal years 1996 and later, the capital 
        expenditure equipment revenue for each district equals $68 $69 
        times its actual pupil units for the school year.  
           (c) Of a district's capital expenditure equipment revenue, 
        $3 times its actual pupil units for the school year shall be 
        reserved and used according to subdivision 4, paragraph (b). 
           Sec. 3.  Minnesota Statutes 1992, section 124.244, 
        subdivision 4, is amended to read: 
           Subd. 4.  [USES OF REVENUE.] (a) Capital expenditure 
        equipment revenue may be used only for the following purposes:  
           (1) to pay capital expenditure equipment related 
        assessments of any entity formed under a cooperative agreement 
        between two or more districts; 
           (2) to purchase or lease computers and related materials, 
        copying machines, telecommunications equipment, and other 
        noninstructional equipment; 
           (3) to purchase or lease assistive technology or equipment 
        for instructional programs; 
           (4) to purchase textbooks; 
           (5) to purchase new and replacement library books; and 
           (6) to purchase vehicles except those for which a levy is 
        authorized under section 124.226, subdivision 6. 
           (b) The reserved capital expenditure equipment revenue 
        shall only be used to purchase or lease telecommunications 
        equipment, computers, and related equipment for integrated 
        information management systems for: 
           (1) managing and reporting learner outcome information for 
        all students under a results-oriented graduation rule; 
           (2) managing student assessment, services, and achievement 
        information required for students with individual education 
        plans; and 
           (3) other classroom information management needs. 
           (c) The equipment obtained with reserved revenue shall be 
        utilized, to the greatest extent possible given available 
        funding, on a per instructor or per classroom basis.  A school 
        district may supplement its reserved revenue with other capital 
        expenditure equipment revenue, and cash and in-kind grants from 
        public and private sources. 
           Sec. 4.  Minnesota Statutes 1992, section 124.46, 
        subdivision 3, is amended to read: 
           Subd. 3.  The commissioner of finance shall maintain a 
        separate school loan bond account in the state bond fund, 
        showing all money transferred to that fund for the payment of 
        school loan bonds and all income received from the investment of 
        such money.  On the first day of December in each year there 
        shall be transferred to the bond account all or so much of the 
        money then on hand in the loan repayment account in the maximum 
        effort school loan fund as will be sufficient, with the balance 
        then on hand in said bond account, to pay all principal and 
        interest then and theretofore due and to become due within the 
        next ensuing year and to and including July 1 in the second 
        ensuing year on school loan bonds issued and sold pursuant to 
        this section.  In the event that moneys are not available for 
        such transfer in the full amount required, the state auditor 
        shall levy on all taxable property within the state a tax 
        sufficient to meet the deficiency.  Such tax shall be and remain 
        subject to no limitation of rate or amount until all school loan 
        bonds and all interest thereon are fully paid.  The proceeds of 
        this tax are hereby irrevocably appropriated and shall be 
        credited to the state bond fund, but the school loan bond 
        account is appropriated as the primary source of payment of such 
        bonds and interest, and only so much of said tax as may be 
        necessary is appropriated for this purpose. and if any principal 
        or interest on school loan bonds should become due at any time 
        when there is not on hand a sufficient amount from any of the 
        sources herein appropriated for the payment thereof, it the 
        moneys shall nevertheless be paid out of the general fund in the 
        state treasury according to section 16A.641, and the amount 
        necessary therefor is hereby appropriated; but any such payments 
        shall be reimbursed from the proceeds of taxes levied as 
        required herein, and any such payments made from taxes shall be 
        reimbursed from the loan repayment account in the maximum effort 
        school loan fund, when the balance therein is sufficient. 
           Sec. 5.  Minnesota Statutes 1992, section 124.84, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [LEVY AUTHORITY IN COMBINED DISTRICTS.] 
        Notwithstanding subdivision 3, a district that has combined or 
        consolidated may levy up to 50 percent times $300,000 times the 
        number of former districts that operated on June 30, 1991, in 
        the area that now makes up the combined or consolidated 
        district.  The approved amount is reduced by any amount levied 
        under subdivision 3 in the consolidated or combined district or 
        in the former districts that make up the consolidated or 
        combined district.  Levy authority under this subdivision 
        expires at the same time as levy authority under subdivision 3. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        124.85, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] The definitions in this 
        subdivision apply to this section. 
           (a) "Energy conservation measure" means a training program 
        or facility alteration designed to reduce energy consumption or 
        operating costs and includes: 
           (1) insulation of the building structure and systems within 
        the building; 
           (2) storm windows and doors, caulking or weatherstripping, 
        multiglazed windows and doors, heat absorbing or heat reflective 
        glazed and coated window and door systems, additional glazing, 
        reductions in glass area, and other window and door system 
        modifications that reduce energy consumption; 
           (3) automatic energy control systems; 
           (4) heating, ventilating, or air conditioning system 
        modifications or replacements; 
           (5) replacement or modifications of lighting fixtures to 
        increase the energy efficiency of the lighting system without 
        increasing the overall illumination of a facility, unless such 
        increase in illumination is necessary to conform to the 
        applicable state or local building code for the lighting system 
        after the proposed modifications are made; 
           (6) energy recovery systems; 
           (7) cogeneration systems that produce steam or forms of 
        energy such as heat, as well as electricity, for use primarily 
        within a building or complex of buildings; 
           (8) energy conservation measures that provide long-term 
        operating cost reductions.  
           (b) "Guaranteed energy savings contract" means a contract 
        for the evaluation and recommendations of energy conservation 
        measures, and for one or more energy conservation measures.  The 
        contract must provide that all payments, except obligations on 
        termination of the contract before its expiration, are to be 
        made over time, but not to exceed 25 15 years from the date of 
        final installation, and the savings are guaranteed to the extent 
        necessary to make payments for the systems. 
           (c) "Qualified provider" means a person or business 
        experienced in the design, implementation, and installation of 
        energy conservation measures.  A qualified provider to whom the 
        contract is awarded shall give a sufficient bond to the school 
        district for its faithful performance. 
           (d) "Commissioner" means the commissioner of public service.
           Sec. 7.  Minnesota Statutes 1992, section 124.85, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ENERGY EFFICIENCY CONTRACT.] (a) Notwithstanding 
        any law to the contrary, a school district may enter into a 
        guaranteed energy savings contract with a qualified provider to 
        significantly reduce energy or operating costs. 
           (b) Before entering into a contract under this subdivision, 
        the board shall provide published notice of the meeting in which 
        it proposes to award the contract, the names of the parties to 
        the proposed contract, and the contract's purpose.  
           Before installation of equipment, modification, or 
        remodeling, comply with clauses (1) to (5). 
           (1) The board shall seek proposals from multiple qualified 
        providers by publishing notice of the proposed guaranteed energy 
        savings contract in the board's official newspaper and in other 
        publications if the board determines that additional publication 
        is necessary to notify multiple qualified providers. 
           (2) The school board shall select the qualified provider 
        that best meets the needs of the board.  The school board shall 
        provide public notice of the meeting at which it will select the 
        qualified provider. 
           (3) The contract between the board and the qualified 
        provider must describe the methods that will be used to 
        calculate the costs of the contract and the operational and 
        energy savings attributable to the contract. 
           (4) The qualified provider shall first issue a report, 
        summarizing estimates to the board giving a description of all 
        costs of installations, modifications, or remodeling, including 
        costs of design, engineering, installation, maintenance, 
        repairs, or debt service, and estimates giving detailed 
        calculations of the amounts by which energy or operating costs 
        will be reduced and the projected payback schedule in years. 
           (5) The board shall provide published notice of the meeting 
        in which it proposes to award the contract, the names of the 
        parties to the proposed contract, and the contract's purpose. 
           Sec. 8.  Minnesota Statutes 1992, section 124.85, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [EVALUATION BY COMMISSIONER.] Upon request of 
        the school board, the commissioner of public service shall 
        review the report required in subdivision 2 and provide an 
        evaluation to the board on the proposed contract within 15 
        working days of receiving the report.  In evaluating the 
        proposed contract, the commissioner shall determine whether the 
        detailed calculations of the costs and of the energy and 
        operating savings are accurate and reasonable.  The commissioner 
        may request additional information about a proposed contract as 
        the commissioner deems necessary.  If the commissioner requests 
        additional information, the commissioner shall not be required 
        to submit an evaluation to the board within fewer than ten 
        working days of receiving the requested information.  
           Sec. 9.  Minnesota Statutes 1992, section 124.85, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [REVIEW OF SAVINGS UNDER CONTRACT.] Upon request 
        of the school board, the commissioner shall conduct a review of 
        the energy and operating cost savings realized under a 
        guaranteed energy savings contract every three years during the 
        period a contract is in effect.  The commissioner shall compare 
        the savings realized under the contract during the period under 
        review with the calculations of savings included in the report 
        required under subdivision 2 and provide an evaluation to the 
        board concerning the performance of the system and the accuracy 
        and reasonableness of the claimed energy and operating cost 
        savings. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        124.85, subdivision 4, is amended to read: 
           Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
        guaranteed energy savings contract with a qualified provider if, 
        after review of the report and the commissioner's evaluation if 
        requested, it the board finds that the amount it would spend on 
        the energy conservation measures recommended in the report is 
        not likely to exceed the amount to be saved in energy and 
        operation costs over 25 15 years from the date of installation 
        if the recommendations in the report were followed, and the 
        qualified provider provides a written guarantee that the energy 
        or operating cost savings will meet or exceed the costs of the 
        system.  The guaranteed energy savings contract may provide for 
        payments over a period of time, not to exceed 25 15 years.  
        Notwithstanding section 121.912, a district annually may 
        transfer from the general fund to the capital expenditure fund 
        an amount up to the amount saved in energy and operation costs 
        as a result of guaranteed energy savings contracts. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        124.85, subdivision 5, is amended to read: 
           Subd. 5.  [INSTALLATION CONTRACTS.] A school district may 
        enter into an installment payment contract for the purchase and 
        installation of energy conservation measures.  The contract must 
        provide for payments of not less than 1/25 1/15 of the price to 
        be paid within two years from the date of the first operation, 
        and the remaining costs to be paid monthly, not to exceed a 
        25-year 15-year term from the date of the first operation.  
           Sec. 12.  Minnesota Statutes 1992, section 124.85, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [PUBLIC INFORMATION.] A guaranteed energy savings 
        contract must provide that all work plans and other information 
        prepared by the qualified provider in relation to the project, 
        including a detailed description of the project, are public data 
        after the contract is entered into, except information defined 
        as trade secret information under section 13.37, subdivision 1, 
        shall remain nonpublic data.  
           Sec. 13.  Minnesota Statutes 1993 Supplement, section 
        124.91, subdivision 3, is amended to read: 
           Subd. 3.  [POST-JUNE 1992 LEASE PURCHASE, INSTALLMENT 
        BUYS.] (a) Upon application to, and approval by, the 
        commissioner in accordance with the procedures and limits in 
        subdivision 1, a district, as defined in this subdivision, may: 
           (1) purchase real or personal property under an installment 
        contract or may lease real or personal property with an option 
        to purchase under a lease purchase agreement, by which 
        installment contract or lease purchase agreement title is kept 
        by the seller or vendor or assigned to a third party as security 
        for the purchase price, including interest, if any; and 
           (2) annually levy the amounts necessary to pay the 
        district's obligations under the installment contract or lease 
        purchase agreement. 
           (b)(1) The obligation created by the installment contract 
        or the lease purchase agreement must not be included in the 
        calculation of net debt for purposes of section 475.53, and does 
        not constitute debt under other law.  
           (2) An election is not required in connection with the 
        execution of the installment contract or the lease purchase 
        agreement. 
           (c) The proceeds of the levy authorized by this subdivision 
        must not be used to acquire a facility to be primarily used for 
        athletic or school administration purposes. 
           (d) In this subdivision, "district" means: 
           (1) a school district required to have a comprehensive plan 
        for the elimination of segregation whose plan has been 
        determined by the commissioner to be in compliance with the 
        state board of education rules relating to equality of 
        educational opportunity and school desegregation; or 
           (2) a school district that participates in a joint program 
        for interdistrict desegregation with a district defined in 
        clause (1) if the facility acquired under this subdivision is to 
        be primarily used for the joint program. 
           (e) Notwithstanding subdivision 1, the prohibition against 
        a levy by a district to lease or rent a district-owned building 
        to itself does not apply to levies otherwise authorized by this 
        subdivision. 
           (f) Projects may be approved under this section by the 
        commissioner in fiscal years 1993, 1994, and 1995 only. 
           (g) For the purposes of this subdivision, any references in 
        subdivision 1 to building or land shall be deemed to include 
        personal property. 
           Sec. 14.  Minnesota Statutes 1993 Supplement, section 
        124.95, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
        section, the eligible debt service revenue of a district is 
        defined as follows: 
           (1) the amount needed to produce between five and six 
        percent in excess of the amount needed to meet when due the 
        principal and interest payments on the obligations of the 
        district for eligible projects according to subdivision 2, 
        including the amounts necessary for repayment of energy loans 
        according to section 216C.37 or sections 298.292 to 298.298, 
        debt service loans and capital loans, lease purchase payments 
        under section 124.91, subdivisions 2 and 3, minus 
           (2) the amount of debt service excess levy reduction for 
        that school year calculated according to the procedure 
        established by the commissioner. 
           (b) The obligations in this paragraph are excluded from 
        eligible debt service revenue: 
           (1) obligations under section 124.2445; 
           (2) the part of debt service principal and interest paid 
        from the taconite environmental protection fund or northeast 
        Minnesota economic protection trust; and 
           (3) obligations issued under Laws 1991, chapter 265, 
        article 5, section 18, as amended by Laws 1992, chapter 499, 
        article 5, section 24; and 
           (4) obligations under section 124.2455. 
           (c) For purposes of this section, if a preexisting school 
        district reorganized under section 122.22, 122.23, or 122.241 to 
        122.248 is solely responsible for retirement of the preexisting 
        district's bonded indebtedness, capital loans or debt service 
        loans, debt service equalization aid must be computed separately 
        for each of the preexisting school districts. 
           Sec. 15.  Minnesota Statutes 1992, section 124.95, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
        service equalization revenue, a district must levy an amount not 
        to exceed the district's debt service equalization revenue times 
        the lesser of one or the ratio of: 
           (1) the quotient derived by dividing the adjusted net tax 
        capacity of the district for the year before the year the levy 
        is certified by the actual pupil units in the district for the 
        school year ending in the year prior to the year the levy is 
        certified; to 
           (2) 50 percent of the equalizing factor as defined in 
        section 124A.02, subdivision 8, for the year to which the levy 
        is attributable. 
           Sec. 16.  Minnesota Statutes 1992, section 475.61, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SURPLUS FUNDS.] (a) All such taxes shall be 
        collected and remitted to the municipality by the county 
        treasurer as other taxes are collected and remitted, and shall 
        be used only for payment of the obligations on account of which 
        levied or to repay advances from other funds used for such 
        payments, except that any surplus remaining in the debt service 
        fund when the obligations and interest thereon are paid may be 
        appropriated to any other general purpose by the municipality.  
        However, the amount of any surplus remaining in the debt service 
        fund of a school district when the obligations and interest 
        thereon are paid shall be used to reduce the general education 
        levy authorized pursuant to section 124A.23 and the state aids 
        authorized pursuant to chapters 124, 124A, and 273.  
           (b) The reduction to state aids equals the lesser of (1) 
        the amount of the surplus times the ratio of the district's debt 
        service equalization aid to the district's debt service 
        equalization revenue for the last year that the district 
        qualified for debt service equalization aid; or (2) the 
        district's cumulative amount of debt service equalization aid.  
           (c) The reduction to the general education levy equals the 
        total amount of the surplus minus the reduction to state aids. 
           Sec. 17.  Laws 1992, chapter 499, article 11, section 9, is 
        amended to read: 
           Sec. 9.  [LAND TRANSFER.] 
           Subdivision 1.  [PERMITTED.] (a) Notwithstanding Minnesota 
        Statutes, chapters 94 and 103F or any other law to the contrary, 
        the state of Minnesota may convey the land described in 
        paragraph (b) to independent school district No. 656, Faribault. 
           (b) The land which may be conveyed under paragraph (a) is 
        legally described in general as follows:  
           All that part of the Southeast Quarter of the Southwest 
           Quarter (SE 1/4 of SW 1/4) and all that part of the 
           Southwest Quarter of the Southeast Quarter (SW 1/4 of SE 
           1/4), all in Section 29, Township 110 North, Range 20 West, 
           in the City of Faribault, Rice County, Minnesota, owned by 
           the state of Minnesota or any department or division 
           thereof. 
           or 
           All that part of the Northwest Quarter of the Southwest 
           Quarter (NW 1/4 of SW 1/4) of Section 28, and of the 
           Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 
           1/4) of Section 29, all in Township 110 North, Range 20 
           West, Rice County, Minnesota, owned by the State of 
           Minnesota or any department or division thereof. 
           (c) A more precise legal description in substantial 
        conformance with the description in paragraph (b) must be 
        provided by the grantee in the instruments of conveyance.  Both 
        the precise legal descriptions and the instruments of conveyance 
        must be approved as to form by the attorney general.  
           Subd. 2.  [CONSIDERATION.] The consideration for the 
        conveyance permitted by subdivision 1 is the amount at which the 
        parcel or parcels are appraised by a qualified state appraiser 
        who is appointed by agreement of the parties of $1.  
           Subd. 3. [APPROPRIATION.] The proceeds of the sale are 
        appropriated to the department of education for the use of the 
        state academies for whose account the sale is made and may be 
        used for capital improvements at the academies. 
           Subd. 4.  [PURPOSE.] The land permitted to be conveyed 
        under subdivision 1 is to be used as part of a site for an 
        elementary school. 
           Subd. 4.  [TITLE REVERTS TO STATE.] If the lands described 
        in subdivision 1 are not used for a public purpose, or upon 
        discontinuance of such use, the title for the property shall 
        revert to the state. 
           Sec. 18.  Laws 1993, chapter 224, article 5, section 43, is 
        amended to read as follows: 
           Sec. 43.  [EXCEPTION TO LEASE LIMIT LEASE SPACE; 
        EDUCATIONAL PURPOSES.] 
           Subdivision 1.  [LEASE SPACE; BONDS.] The city of 
        Rollingstone may issue revenue bonds in accordance with 
        Minnesota Statutes, chapter 475, except as otherwise provided in 
        this section, to finance the acquisition, construction, and 
        equipping of a facility to be leased for educational purposes.  
           Subd. 2.  [EXCEPTION TO LEASE LIMIT.] Notwithstanding any 
        law to the contrary, independent school district No. 861, 
        Winona, may enter into an agreement, for the number of years 
        stated in the agreement, with the city of Rollingstone to lease 
        space for educational purposes. 
           Subd. 3.  [PAYMENTS; LEVY.] (a) The payments required to be 
        made by the district under the agreement described in 
        subdivision 2 are fixed for the term of the agreement, except as 
        otherwise provided therein.  Upon approval of the agreement 
        described in subdivision 2 by the commissioner of education and 
        the district, the district may shall levy for as many years as 
        required under the agreement a tax in the amount and at the 
        times necessary to make payments required by the agreement in 
        accordance with Minnesota Statutes, section 475.61.  The 
        payments shall be a general obligation of the district and are 
        not subject to Minnesota Statutes, section 475.58. 
           (b) To obtain approval for the agreement described in 
        subdivision 2 from the commissioner, the district must 
        demonstrate substantial collaboration with the city in the use 
        of the facility.  The city must also agree to contribute 
        $100,000 toward the cost of the education portion of the 
        facility.  The amount of the levy shall be annually included in 
        the district's debt service levy under Minnesota Statutes, 
        section 124.95, subdivision 1, for purposes of determining the 
        district's debt service equalization aid. 
           Sec. 19.  Laws 1993, chapter 224, article 5, section 46, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CAPITAL EXPENDITURE FACILITIES AID.] For capital 
        expenditure facilities aid according to Minnesota Statutes, 
        section 124.243, subdivision 5: 
             $73,290,000 $73,390,000  .....     1994
             $75,980,000 $76,198,000  .....     1995
           The 1994 appropriation includes $10,730,000 for 1993 and 
        $62,560,000 $62,660,000 for 1994. 
           The 1995 appropriation includes $11,040,000 $11,058,000 for 
        1994 and $64,940,000 $65,140,000 for 1995. 
           Sec. 20.  Laws 1993, chapter 224, article 5, section 46, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital 
        expenditure equipment aid according to Minnesota Statutes, 
        section 124.244, subdivision 3: 
             $36,049,000 $36,098,000  .....     1994
             $37,390,000 $38,998,000  .....     1995
           The 1994 appropriation includes $5,279,000 for 1993 and 
        $30,720,000 $30,819,000 for 1994. 
           The 1995 appropriation includes $5,430,000 $5,439,000 for 
        1994 and $31,960,000 $33,559,000 for 1995. 
           Sec. 21.  Laws 1993, chapter 224, article 5, section 46, 
        subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH AND SAFETY AID.] (a) For health and 
        safety aid according to Minnesota Statutes, section 124.83, 
        subdivision 5: 
             $11,260,000     .....     1994 
             $18,924,000     .....     1995 
           The 1994 appropriation includes $1,256,000 for 1993 and 
        $10,004,000 for 1994.  
           The 1995 appropriation includes $1,694,000 for 1994 and 
        $17,230,000 for 1995.  
           (b) $400,000 in fiscal year 1994 and $400,000 in fiscal 
        year 1995 is for health and safety management assistance 
        contracts under section 24. 
           (c) $60,000 of each year's appropriation shall be used to 
        contract with the state fire marshal to provide services under 
        Minnesota Statutes, section 121.502.  This amount is in addition 
        to the amount for this purpose in article 11.  
           (d) For fiscal year 1995, the sum of total health and 
        safety revenue and levies under section 3 may not exceed 
        $64,000,000.  The state board of education shall establish 
        criteria for prioritizing district health and safety project 
        applications not to exceed this amount.  In addition to the 
        criteria developed by the state board of education, for any 
        health and safety revenue authority that is redistributed, the 
        commissioner shall place highest priority on asbestos abatement 
        and removal projects in cases where school districts will lose 
        federal funds or federal loans if the projects are not started 
        or continued in fiscal year 1995 and second highest priority on 
        fire code compliance projects for special school district No. 6, 
        South St. Paul.  The commissioner may request documentation as 
        necessary from school districts for the purpose of 
        reestablishing health and safety revenue priorities. 
           (e) Notwithstanding section 124.14, subdivision 7, the 
        commissioner of education, with the approval of the commissioner 
        of finance, may transfer a projected excess in the appropriation 
        for health and safety aid for fiscal year 1995 to the 
        appropriation for debt service aid for the same fiscal year.  
        The projected excess amount and, the projected deficit in the 
        appropriation for debt service aid, and the amount of the 
        transfer must be determined and the transfer made as of November 
        1, 1994 1993.  The projections and the amount of the transfer 
        may be revised to reflect corrected data as of June 1, 1994.  
        The transfer must be made as of July 1, 1994.  The amount of the 
        transfer is limited to the lesser of the projected excess in the 
        health and safety appropriation or the projected deficit in the 
        appropriation for debt service aid.  Any transfer must be 
        reported immediately to the education committees of the house of 
        representatives and senate. 
           Sec. 22.  [NASHWAUK-KEEWATIN; HEALTH AND SAFETY REVENUE.] 
           Notwithstanding the revenue limitation in Laws 1991, 
        chapter 265, article 5, section 24, subdivision 4, for 
        independent school district No. 319, Nashwauk-Keewatin, the full 
        amount of authority for health and safety projects approved by 
        the commissioner of education may be expended in fiscal year 
        1993, 1994, or 1995. 
           Sec. 23.  [NASHWAUK-KEEWATIN; HEALTH AND SAFETY REVENUE USE 
        VARIANCE.] 
           Notwithstanding Minnesota Statutes, section 124.83, 
        subdivision 6, upon approval of the commissioner of education, 
        independent school district No. 319, Nashwauk-Keewatin, may use 
        its health and safety revenue in fiscal years 1994 and 1995 to 
        relocate its vocational center to a Nashwauk-Keewatin high 
        school garage. 
           Sec. 24.  [CASS LAKE; CAPITAL LOAN CONTRACT DEADLINE 
        EXTENSION.] 
           Notwithstanding Minnesota Statutes 1993 Supplement, section 
        124.431, subdivision 1, for a capital loan granted to 
        independent school district No. 115, Cass Lake, contracts must 
        be entered into within 42 months after the date on which the 
        loan is granted. 
           Sec. 25.  [FLOODWOOD.] 
           Subdivision 1.  [HEALTH AND SAFETY REVENUE 
        EXPENDITURE.] Notwithstanding Minnesota Statutes, section 
        124.83, subdivision 6, independent school district No. 698, 
        Floodwood, may expend health and safety revenue for the 
        construction of new facilities. 
           Subd. 2.  [FUND TRANSFER.] Notwithstanding Minnesota 
        Statutes, sections 121.912, 121.9121, and 124.243, subdivision 
        8, or any other law, independent school district No. 698, 
        Floodwood, may permanently transfer any amount from its health 
        and safety and facilities accounts in its capital expenditure 
        fund to its building construction fund. 
           Subd. 3.  [DATE OF TRANSFER.] Independent school district 
        No. 698, Floodwood, may make the fund transfer according to 
        subdivision 2 only after the school district has held a 
        successful referendum for the sale of bonds according to the 
        provisions of Minnesota Statutes, chapter 475. 
           Sec. 26.  [INDEPENDENT SCHOOL DISTRICT NO. 518, 
        WORTHINGTON.] 
           Subdivision 1.  [BOND AUTHORITY.] To provide funds for the 
        construction of facilities to meet the educational and 
        residential needs of adolescents attending the Lakeview school 
        for whom independent school district No. 518, Worthington, has 
        the responsibility of providing services, independent school 
        district No. 518, Worthington, may, by two-thirds majority plus 
        one vote of all the members of the school board, issue general 
        obligation bonds in one or more series in calendar years 1994 
        and 1995 as provided in this section.  The aggregate principal 
        amount of any bonds issued under this section for calendar years 
        1994 and 1995 may not exceed $2,600,000.  Issuance of the bonds 
        is not subject to Minnesota Statutes, section 475.58 or 475.59.  
        If the school board proposes to issue bonds under this section, 
        it must publish a resolution describing the proposed bond issue 
        once each week for two successive weeks in a legal newspaper 
        published in the county of Nobles.  The bonds may be issued 
        without the submission of the question of their issue to the 
        electors unless, within 30 days after the second publication of 
        the resolution, a petition requesting an election signed by a 
        number of people residing in the school district equal to ten 
        percent of the people registered to vote in the last general 
        election in the school district is filed with the recording 
        officer.  If a petition is filed, no bonds shall be issued under 
        this section unless authorized by a majority of the electors 
        voting on the question at the next general or special election 
        called to decide the issue.  The bonds must otherwise be issued 
        as provided in Minnesota Statutes, chapter 475.  The authority 
        to issue bonds under this section is in addition to any bonding 
        authority authorized by Minnesota Statutes, chapter 124, or 
        other law.  The commissioner of education shall not approve the 
        sale of bonds by independent school district No. 518, 
        Worthington, until the school district can demonstrate to the 
        commissioner's satisfaction that appropriate department of human 
        services approval, including licensure, will be granted. 
           Subd. 2.  [DEBT SERVICE.] Independent school district No. 
        518, Worthington, shall include the yearly debt service amounts 
        in its required debt service levy under Minnesota Statutes, 
        section 124.95, subdivision 1, for purposes of receiving debt 
        service equalization aid.  The district may add the portion of 
        the debt service levy remaining after equalization aid is paid 
        to the amount charged back to resident districts according to 
        Minnesota Statutes, section 120.17, subdivision 6, or 120.181.  
        If, for any reason, the receipt of payments from resident 
        districts and debt service equalization aid attributable to this 
        debt service is not sufficient to make the required debt service 
        payments, the district may levy under subdivision 3. 
           Subd. 3.  [LEVY AUTHORITY.] To pay the principal of and 
        interest on bonds issued under subdivision 1, independent school 
        district No. 518, Worthington, shall levy a tax in an amount 
        sufficient under Minnesota Statutes, section 475.61, 
        subdivisions 1 and 3, to pay any portion of the principal of and 
        interest on the bonds that is not paid through the receipt of 
        debt service equalization aid and tuition payments under 
        subdivision 2.  The tax authorized under this section is in 
        addition to the taxes authorized to be levied under Minnesota 
        Statutes, chapter 124A or 275, or other law. 
           Sec. 27.  [INCREASE IN AUTHORIZATION.] 
           Notwithstanding any other law to the contrary, the approved 
        amount of indebtedness authorized by the electors of independent 
        school district No. 38, Red Lake, on December 10, 1991, may be 
        increased by resolution of the board of directors of independent 
        school district No. 38, Red Lake, from $9,926,070 to an amount 
        not to exceed $10,075,000. 
           Sec. 28.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal years indicated. 
           Subd. 2.  [PLANNING GRANT.] For a grant to independent 
        school district Nos. 325, Lakefield; 328, Sioux Valley; 330, 
        Heron Lake-Okabena; 513, Brewster; and 516, Round Lake acting as 
        a joint powers agreement: 
          $100,000     .....     1995
           The grant is to cover costs associated with planning for 
        facility needs for a combined district.  The facilities must 
        provide for the location of a significant number of 
        noneducational student and community service programs within the 
        facility.  
           Subd. 3.  [COLLABORATION PLANNING GRANT, EAST CENTRAL 
        SCHOOL.] For a planning grant to independent school district No. 
        2580, East Central, to plan for a facility to house an area 
        learning center and a family and children's service center for 
        northern Pine county: 
          $50,000     .....     1994
           This appropriation is available until June 30, 1995. 
           The department must provide technical assistance.  The 
        planning must address facility size and location, methods of 
        financing, and the types of services that would be provided.  
        The local governments planning this facility must provide a 
        match of $1 for every $2 of this appropriation.  The local match 
        may be in-kind resources.  
           Subd. 4.  [PLANNING GRANT; ELEMENTARY SCHOOL.] For a grant 
        and administrative expenses to facilitate a joint elementary 
        facility for independent school district Nos. 622, North St. 
        Paul-Maplewood; 833, South Washington County; and 834, 
        Stillwater.  
          $100,000     .....     1995
           The planning grant must be used to plan a joint elementary 
        facility that is continuous progress, performance-based, 
        collaboratively developed, and operated year-round.  The 
        districts must report to the education committees of the 
        legislature on the progress of the project by March 1, 1995.  
           Sec. 29.  [EFFECTIVE DATE.] 
           Section 24 is effective retroactive to July 1, 1993.  
        Sections 13; 18 to 21; 27; and 28 are effective the day 
        following final enactment.  Section 1 is effective July 1, 1995. 
                                   ARTICLE 6 
                     EDUCATION ORGANIZATION AND COOPERATION 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        121.931, subdivision 5, is amended to read: 
           Subd. 5.  [SOFTWARE DEVELOPMENT.] The commissioner shall 
        provide for the development of applications software for ESV-IS 
        and SDE-IS.  The commissioner may charge school districts or 
        regional organizations cooperative units for the actual cost of 
        software development used by the district or regional entity 
        cooperative unit.  Any amount received is annually appropriated 
        to the department of education for this purpose.  A school 
        district or cooperative unit may not implement a payroll, 
        student, or staff software system after June 30, 1994, until the 
        system has been reviewed by the department to ensure that it 
        provides the required data elements and format. 
           Sec. 2.  Minnesota Statutes 1992, 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 obligations, as defined in section 
        475.51, for computer hardware.  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 obligation.  The district is not liable for any 
        additional outstanding regional obligations that occur after 
        written notice is given to transfer or use an alternative 
        finance system.  A regional management information center must 
        not charge a district for transferring the district's summary 
        financial data and essential data elements to the state.  The 
        regional management information center may charge the district 
        for any service it provides to, or performs on behalf of, a 
        district to render the data in the proper format for reporting 
        to the state.  
           Sec. 3.  Minnesota Statutes 1992, section 122.23, 
        subdivision 6, is amended to read: 
           Subd. 6.  The state board commissioner shall, upon receipt 
        of a plat, forthwith examine it and approve, modify or reject 
        it.  The state board commissioner shall also approve or reject 
        any proposal contained in the resolution or petition regarding 
        the disposition of the bonded debt of the component districts.  
        If the plat shows the boundaries of proposed separate election 
        districts and if the state board commissioner modifies the plat, 
        the state board commissioner shall also modify the boundaries of 
        the proposed separate election districts.  Prior thereto the 
        state board or a member thereof or The commissioner or assistant 
        commissioner as designated by the state board shall conduct a 
        hearing at the nearest county seat in the area upon reasonable 
        notice to the affected districts and county boards if requested 
        within 20 days after submission of the plat.  Such a hearing may 
        be requested by the board of any affected district, a county 
        board of commissioners, or the petition of 20 resident voters 
        living within the area proposed for consolidation.  The state 
        board commissioner shall endorse on the plat its action 
        regarding any proposal for the disposition of the bonded debt of 
        component districts and its the reasons for its these actions 
        and within 60 days of the date of the receipt of the plat, it 
        the commissioner shall return it to the county auditor who 
        submitted it.  The state board commissioner shall furnish a copy 
        of that plat, and the supporting statement and its endorsement 
        to the auditor of each county containing any land area of the 
        proposed new district.  If land area of a particular county was 
        included in the plat, as submitted by the county auditor, and 
        all of such land area is excluded in the plat as modified and 
        approved, the state board commissioner shall also furnish a copy 
        of the modified plat, supporting statement, and its any 
        endorsement to the auditor of such county. 
           Sec. 4.  Minnesota Statutes 1992, section 122.23, 
        subdivision 8, is amended to read: 
           Subd. 8.  The board of any independent district maintaining 
        a secondary school, the board of any common district maintaining 
        a secondary school, all or part of whose land is included in the 
        proposed new district, shall, within 45 days of the approval of 
        the plat by the state board commissioner, either adopt or reject 
        the plan as proposed in the approved plat.  If the board of any 
        such district entitled to act on the petition rejects the 
        proposal, the proceedings are terminated and dismissed.  If any 
        board fails to act on the plat within the time allowed, the 
        proceedings are terminated. 
           Sec. 5.  Minnesota Statutes 1992, section 122.23, 
        subdivision 10, is amended to read: 
           Subd. 10.  If an approved plat contains land area in any 
        district not entitled to act on approval or rejection of the 
        plat by action of its board, the plat may be approved by the 
        residents of the land area within 60 days of approval of plat by 
        the state board commissioner in the following manner: 
           A petition calling upon the county auditor to call and 
        conduct an election on the question of adoption or rejection of 
        the plat may be circulated in the land area by any person 
        residing in the area.  Upon the filing of the petition with the 
        county auditor, executed by at least 25 percent of the eligible 
        voters in each district or part of a district contained in the 
        land area, the county auditor shall forthwith call and conduct a 
        special election of the electors resident in the whole land area 
        on the question of adoption of the plat.  For the purposes of 
        this section, the term "electors resident in the whole land area"
        means any person residing on any remaining portion of land, a 
        part of which is included in the consolidation plat.  Any 
        eligible voter owning land included in the plat who lives upon 
        land adjacent or contiguous to that part of the voter's land 
        included in the plat shall be included and counted in computing 
        the 25 percent of the eligible voters necessary to sign the 
        petition and shall also be qualified to sign the petition.  
        Failure to file the petition within 60 days of approval of the 
        plat by the state board commissioner terminates the proceedings. 
           Sec. 6.  Minnesota Statutes 1992, section 122.23, 
        subdivision 13, is amended to read: 
           Subd. 13.  If a majority of the votes cast on the question 
        at the election approve the consolidation, and if the necessary 
        approving resolutions of boards entitled to act on the plat have 
        been adopted, the school board shall, within ten days of the 
        election, notify the county auditor who shall, within ten days 
        of the notice or of the expiration of the period during which an 
        election can be called, issue an order setting a date for the 
        effective date of the change.  The effective date shall be July 
        1 of an odd-numbered year, unless an even-numbered year is 
        agreed upon according to subdivision 13a the year determined by 
        the school board in the original resolution adopted under 
        subdivision 2.  The auditor shall mail or deliver a copy of such 
        order to each auditor holding a copy of the plat and to the 
        clerk of each district affected by the order and to the 
        commissioner.  The school board shall similarly notify the 
        county auditor if the election fails.  The proceedings are then 
        terminated and the county auditor shall so notify the 
        commissioner and the auditors and the clerk of each school 
        district affected. 
           Sec. 7.  Minnesota Statutes 1992, section 122.23, is 
        amended by adding a subdivision to read: 
           Subd. 20.  [RETIREMENT INCENTIVES.] (a) For consolidations 
        effective July 1, 1994, and thereafter, a school board of a 
        district may offer early retirement incentives to licensed and 
        nonlicensed staff.  The early retirement incentives that the 
        board may offer are: 
           (1) the payment of employer pension plan contributions for 
        a specified period of allowable service credit for district 
        employees who have at least ten years of allowable service 
        credit in the applicable pension plan under paragraph (b); 
           (2) an extended leave of absence for an eligible employee 
        under section 125.60; 
           (3) severance payment incentives under paragraph (c); and 
           (4) the employer payment of the premiums for continued 
        health insurance coverage under paragraph (d). 
           These incentives may only be offered to employees who 
        terminate active employment with the school district or who 
        enter into an extended leave of absence as a result of the 
        consolidation, whichever applies.  The board may determine the 
        staff to whom the incentives are offered.  Unilateral 
        implementation of this section by a school board is not an 
        unfair labor practice under chapter 179A. 
           (b) An employee with at least ten years of allowable 
        service credit in the applicable pension plan who is offered an 
        early retirement incentive under paragraph (a), clause (1), may 
        purchase up to five additional years of allowable service credit 
        from the applicable pension plan.  To do so, the former employee 
        must pay the member contributions to the pension plan annually 
        in a manner and in accord with a schedule specified by the 
        executive director of the applicable fund.  If the former 
        employee makes the member contribution, the board shall make the 
        applicable employer contribution.  The salary used to determine 
        these contributions is the salary of the person in the last year 
        that the former employee was employed by the district.  During 
        the period of continuing member and employer contributions, the 
        person is not considered to be an active member of the 
        applicable pension plan, is not eligible for any active member 
        disability or survivorship benefit coverage, and is not included 
        in any postemployment termination benefit plan changes unless 
        the applicable benefit legislation provides otherwise.  
        Continued eligibility to purchase service credit under this 
        paragraph expires if the person is subsequently employed during 
        the service purchase period by a public employer with retirement 
        coverage under a pension plan specified in section 356.30, 
        subdivision 3. 
           (c) Severance payment incentives must conform with sections 
        465.72, 465.721, and 465.722. 
           (d) The board may offer a former employee continued 
        employer-paid health insurance coverage.  Coverage may not 
        extend beyond age 65 or the end of the first month in which the 
        employee is eligible for employer-paid health insurance coverage 
        from a new employer.  For purposes of this subdivision, 
        "employer-paid health insurance coverage" means medical, 
        hospitalization, or health insurance coverage provided through 
        an insurance company that is licensed to do business in the 
        state and for which the employing unit pays more than one-half 
        of the cost of the insurance premiums. 
           (e) A school board may offer these incentives beginning on 
        the day that the consolidation is approved under section 122.23, 
        subdivision 12 or, if an election is not called under section 
        122.23, subdivision 9 or 10, on the day that the plat is 
        approved by the commissioner.  A board may offer these 
        incentives until the June 30 following the effective date of the 
        consolidation. 
           Sec. 8.  Minnesota Statutes 1992, section 122.531, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 
        INCENTIVES.] The school board of a newly created or enlarged 
        district, to which part or all of a dissolved district was 
        attached according to section 122.22 or 122.23, may levy for 
        severance pay or early retirement incentives for licensed and 
        nonlicensed employees who resign or retire early as a result of 
        the dissolution or consolidation, if the commissioner of 
        education approves the incentives and the amount to be levied.  
        The amount may be levied over a period of up to five years and 
        shall be spread in whole or in part on the property of a 
        preexisting district or the newly created or enlarged district, 
        as determined by the school board of the newly created or 
        enlarged district. 
           Sec. 9.  Minnesota Statutes 1992, section 122.533, is 
        amended to read: 
           122.533 [EXPENSES OF TRANSITION.] 
           The newly elected board of a newly created district 
        pursuant to section 122.23 or the board of a district to which a 
        dissolved district is attached pursuant to section 122.22, may, 
        for the purpose of paying the expenses of negotiations and other 
        administrative expenses relating to the transition, enter into 
        agreements with banks or any person to take its orders at any 
        rate of interest not to exceed seven percent per annum.  These 
        orders shall be paid by the treasurer of the district from 
        district funds after the effective date of the consolidation or 
        dissolution and attachment.  Notwithstanding the provisions of 
        sections 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, 
        124.918, and 136C.411, the district may, in the year the 
        consolidation or dissolution and attachment becomes effective, 
        levy an amount equal to the amount of the orders issued pursuant 
        to this subdivision and the interest on these orders.  No 
        district shall issue orders for funds or make a levy pursuant to 
        this subdivision without the commissioner's approval of the 
        expenses to be paid with the funds from the orders and levy. 
           Sec. 10.  [122.98] [COOPERATIVE UNIT INSURANCE POOLS.] 
           Any cooperative unit defined in section 123.35, subdivision 
        19b, that directly manages a health insurance pool or provides 
        health insurance coverage through an insurance pool as a service 
        to members must create a labor-management committee 
        representative of the groups covered by the pool to advise the 
        governmental unit on management matters of the coverage. 
           Sec. 11.  Minnesota Statutes 1992, section 123.35, 
        subdivision 19a, is amended to read: 
           Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
        SUPPORT.] (a) No school district shall be required by any type 
        of formal or informal agreement, including a joint powers 
        agreement, or otherwise membership in any cooperative unit 
        defined in subdivision 19b, paragraph (d), to participate in or 
        provide financial support for the purposes of the agreement for 
        a time period in excess of one fiscal year, or the time period 
        set forth in this subdivision.  Any agreement, part of an 
        agreement, or other type of requirement to the contrary is void. 
           (b) This subdivision shall not affect the continued 
        liability of a school district for its share of bonded 
        indebtedness or other debt incurred as a result of any agreement 
        before July 1, 1993.  The school district is liable only until 
        the obligation or debt is discharged and only according to the 
        payment schedule in effect on July 1, 1993, except that the 
        payment schedule may be altered for the purpose of restructuring 
        debt or refunding bonds outstanding on July 1, 1993, if the 
        annual payments of the school district are not increased and if 
        the total obligation of the school district for its share of 
        outstanding bonds or other debt is not increased. 
           (c) To cease participating in or providing financial 
        support for any of the services or activities relating to the 
        agreement or to terminate participation in the agreement, the 
        school board shall adopt a resolution and notify other parties 
        to the agreement of its decision on or before February 1 of any 
        year.  The cessation or withdrawal shall be effective June 30 of 
        the same year or, except that for a member of an education 
        district organized under sections 122.91 to 122.95 or an 
        intermediate district organized under chapter 136D, cessation or 
        withdrawal shall be effective June 30 of the following fiscal 
        year.  At the option of the school board, cessation or 
        withdrawal may be effective June 30 of the following fiscal year 
        for a district participating in any type of agreement.  
           (d) Before issuing bonds or incurring other debt, the 
        governing body responsible for implementing the agreement shall 
        adopt a resolution proposing to issue bonds or incur other debt 
        and the proposed financial effect of the bonds or other debt 
        upon each participating district.  The resolution shall be 
        adopted within a time sufficient to allow the school board to 
        adopt a resolution within the time permitted by this paragraph 
        and to comply with the statutory deadlines set forth in sections 
        122.895, 125.12, and 125.17.  The governing body responsible for 
        implementing the agreement shall notify each participating 
        school board of the contents of the resolution.  Within 120 days 
        of receiving the resolution of the governing body, the school 
        board of the participating district shall adopt a resolution 
        stating: 
           (1) its concurrence with issuing bonds or incurring other 
        debt; 
           (2) its intention to cease participating in or providing 
        financial support for the service or activity related to the 
        bonds or other debt; or 
           (3) its intention to terminate participation in the 
        agreement. 
           A school board adopting a resolution according to clause 
        (1) is liable for its share of bonded indebtedness or other debt 
        as proposed by the governing body implementing the agreement.  A 
        school board adopting a resolution according to clause (2) is 
        not liable for the bonded indebtedness or other debt, as 
        proposed by the governing body, related to the services or 
        activities in which the district ceases participating or 
        providing financial support.  A school board adopting a 
        resolution according to clause (3) is not liable for the bonded 
        indebtedness or other debt proposed by the governing body 
        implementing the agreement. 
           (e) After July 1, 1993, a district is liable according to 
        paragraph (d) for its share of bonded indebtedness or other debt 
        incurred by the governing body implementing the agreement to the 
        extent that the bonds or other debt are directly related to the 
        services or activities in which the district participates or for 
        which the district provides financial support.  The district has 
        continued liability only until the obligation or debt is 
        discharged and only according to the payment schedule in effect 
        at the time the governing body implementing the agreement 
        provides notice to the school board, except that the payment 
        schedule may be altered for the purpose of refunding the 
        outstanding bonds or restructuring other debt if the annual 
        payments of the district are not increased and if the total 
        obligation of the district for the outstanding bonds or other 
        debt is not increased. 
           Sec. 12.  Minnesota Statutes 1992, section 123.35, is 
        amended by adding a subdivision to read: 
           Subd. 19b.  [WITHDRAWING FROM COOPERATIVE.] If a school 
        district withdraws from a cooperative unit defined in paragraph 
        (d), the distribution of assets and assignment of liabilities to 
        the withdrawing district shall be determined according to this 
        subdivision. 
           (a) The withdrawing district remains responsible for its 
        share of debt incurred by the cooperative unit according to 
        subdivision 19a.  The school district and cooperative unit may 
        mutually agree, through a board resolution by each, to terms and 
        conditions of the distribution of assets and the assignment of 
        liabilities.  
           (b) If the cooperative unit and the school district cannot 
        agree on the terms and conditions, the commissioner of education 
        shall resolve the dispute by determining the district's 
        proportionate share of assets and liabilities based on the 
        district's enrollment, financial contribution, usage, or other 
        factor or combination of factors determined appropriate by the 
        commissioner.  The assets shall be disbursed to the withdrawing 
        district in a manner that minimizes financial disruption to the 
        cooperative unit.  
           (c) Assets related to an insurance pool shall not be 
        disbursed to a member district under paragraph (b) of this 
        section.  
           (d) For the purposes of this section, a cooperative unit is:
           (1) an education district organized under sections 122.91 
        to 122.95; 
           (2) a cooperative vocational center organized under section 
        123.351; 
           (3) an intermediate district organized under chapter 136D; 
           (4) an educational cooperative service unit organized under 
        section 123.58; 
           (5) a regional management information center organized 
        under section 121.935 or as a joint powers district according to 
        section 471.59. 
           Sec. 13.  Minnesota Statutes 1992, section 123.35, is 
        amended by adding a subdivision to read: 
           Subd. 21.  [APPEAL TO COMMISSIONER.] If a cooperative unit 
        as defined in subdivision 19b, paragraph (d), denies membership 
        in the unit to a school district, the school district may appeal 
        to the commissioner of education.  The commissioner may require 
        the cooperative unit to grant the district membership. 
           Sec. 14.  Minnesota Statutes 1993 Supplement, section 
        123.351, subdivision 8, is amended to read: 
           Subd. 8.  [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 
        approval by majority vote of a school board, and of the center 
        board, and of the commissioner, an adjoining school district may 
        become a member in the center and be governed by the provisions 
        of this section and the agreement in effect. 
           Any participating district may withdraw from the center and 
        from the agreement in effect by a majority vote of the full 
        board membership of the participating school district desiring 
        withdrawal and upon compliance with provisions in the agreement 
        establishing the center.  Upon receipt of the withdrawal 
        resolution reciting the necessary facts, the center board shall 
        file a certified copy with the county auditors of the counties 
        affected.  The withdrawal shall become effective at the end of 
        the next following school year but the withdrawal shall not 
        affect the continued liability of the withdrawing district for 
        bonded indebtedness it incurred prior to the effective 
        withdrawal date. 
           Sec. 15.  Minnesota Statutes 1992, section 123.58, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ESTABLISHMENT OF EDUCATIONAL COOPERATIVE SERVICE 
        UNITS.] (a) In furtherance of this policy, ten educational 
        cooperative service units are designated established.  Each 
        unit, should it become operational, shall be termed an 
        educational cooperative service unit, hereafter designated as an 
        ECSU.  Geographical boundaries for each ECSU shall coincide with 
        those identified in governor's executive orders 8, dated 
        September 1, 1971, and 59, dated May 29, 1973, issued pursuant 
        to the regional development act of 1969, Minnesota Statutes, 
        sections 462.381 to 462.397, with the following exceptions: 
           (i) (1) development regions one and two shall be combined 
        to form a single ECSU; 
           (ii) (2) development regions six east and six west shall be 
        combined to form a single ECSU; 
           (iii) (3) development regions seven east and seven west 
        shall be combined to form a single ECSU. 
           (b) The ECSU shall cooperate with the regional development 
        commission for the region with which its boundaries coincide but 
        shall not be responsible to nor governed by that regional 
        development commission. 
           (c) The geographic location of the central administrative 
        office of a school district shall determine the membership of 
        the total school district in a particular ECSU.  Existing school 
        district boundaries shall not be altered as a result of this 
        section. 
           (d) Notwithstanding paragraphs (a), (b), and (c), a school 
        district may become a full member of an ECSU other than the one 
        in which its central administrative office is located if the 
        district is a member of an education district or a participant 
        in another cooperative agreement, and more than half of the 
        member districts of the education district or participants in 
        the cooperative agreement are members of another ECSU. 
           (e) Two or more identified ECSU units may, upon approval by 
        a majority of school boards of participating school districts in 
        each affected ECSU, be combined and administered as a single 
        ECSU unit but state assistance shall be allocated on the basis 
        of two or more ECSU units. 
           (f) The initial organization of each ECSU may occur only 
        upon petition to the state board of education by a majority of 
        all school districts in an ECSU.  The state board of education 
        shall, upon receipt of this petition, invite representation from 
        all public school districts and shall encourage the 
        participation of nonpublic school administrative units to the 
        extent allowed by law in an ECSU at a regional meeting.  The 
        state board of education shall then assist in the necessary 
        organizational activities for establishment of an ECSU pursuant 
        to the requirements of this section. 
           Sec. 16.  Minnesota Statutes 1992, section 123.58, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MEMBERSHIP AND PARTICIPATION.] Full membership 
        in an ECSU shall be limited to public school districts of the 
        state but nonvoting associate memberships shall be available to 
        nonpublic school administrative units within the ECSU.  A school 
        district may belong to one or more ECSUs.  Participation in 
        programs and services provided by the ECSU shall be 
        discretionary.  No school district shall be compelled to 
        participate in these services under authority of this 
        section.  However, all school districts whose central 
        administrative offices are within that ECSU whose boundaries 
        coincide with those of development region 11 shall participate 
        in the planning and planning research functions of that ECSU.  
        All of the members of an education district shall belong to the 
        same ECSU, if any members belong to an ECSU.  No planning or 
        planning research decision of that ECSU shall be binding on 
        these region 11 districts.  Nonpublic school students and 
        personnel are encouraged to participate in programs and services 
        to the extent allowed by law. 
           Sec. 17.  Minnesota Statutes 1993 Supplement, section 
        123.58, subdivision 6, is amended to read: 
           Subd. 6.  [DUTIES AND POWERS OF ECSU BOARD OF DIRECTORS.] 
        The board of directors shall have authority to maintain and 
        operate an ECSU.  Subject to the availability of necessary 
        resources, the powers and duties of this board shall include the 
        following: 
           (a) The board of directors shall submit within 90 days 
        after the filing of the initial petition with the state board of 
        education and by June 1 of each year thereafter to the 
        commissioner and to each participating school district an annual 
        plan which describes the objectives and procedures to be 
        implemented in assisting in resolution of the educational needs 
        of the ECSU.  In formulating the plan the board is encouraged to 
        consider:  (1) the number of dropouts of school age in the ECSU 
        area and the reasons for the dropouts; (2) existing programs 
        within participating districts for dropouts and potential 
        dropouts; (3) existing programs of the ECSU for dropouts and 
        potential dropouts and (4) program needs of dropouts and 
        potential dropouts in the area served by the ECSU.  
           (b) The ECSU board of directors may provide adequate 
        office, service center, and administrative facilities by lease, 
        purchase, gift, or otherwise, subject to the review of the 
        commissioner as to the adequacy of the facilities proposed. 
           (c) The ECSU board of directors may employ a central 
        administrative staff and other personnel as necessary to provide 
        and support the agreed upon programs and services.  The board 
        may discharge staff and personnel pursuant to provisions of law 
        applicable to independent school districts.  ECSU staff and 
        personnel may participate in retirement programs and any other 
        programs available to public school staff and personnel.  
           (d) The ECSU board of directors may appoint special 
        advisory committees composed of superintendents, central office 
        personnel, building principals, teachers, parents and lay 
        persons.  
           (e) The ECSU board of directors may employ service area 
        personnel pursuant to licensure standards developed by the state 
        board and the board of teaching.  
           (f) The ECSU board of directors may enter into contracts 
        with school boards of local districts including school districts 
        outside the ECSU area.  
           (g) The ECSU board of directors may enter into contracts 
        with other public and private agencies and institutions which 
        may include, but are not limited to, contracts with Minnesota 
        institutions of higher education to provide administrative staff 
        and other personnel as necessary to furnish and support the 
        agreed upon programs and services.  
           (h) The ECSU board of directors shall exercise all powers 
        and carry out all duties delegated to it by participating local 
        school districts under provisions of the ECSU bylaws.  The ECSU 
        board of directors shall be governed, when not otherwise 
        provided, by the provisions of law applicable to independent 
        school districts of the state. 
           (i) The ECSU board of directors shall submit an annual 
        evaluation report of the effectiveness of programs and services 
        to the school districts and nonpublic school administrative 
        units within the ECSU and the commissioner by September 1 of 
        each year following the school year in which the program and 
        services were provided.  
           (j) The ECSU board is encouraged to establish cooperative, 
        working relationships with post-secondary educational 
        institutions in the state.  
           Sec. 18.  Minnesota Statutes 1993 Supplement, section 
        123.58, subdivision 7, is amended to read: 
           Subd. 7.  [APPOINTMENT OF AN ADVISORY COUNCIL.] There shall 
        be an advisory council selected to give advice and counsel to 
        the ECSU board of directors.  This council shall be composed of 
        superintendents, central office personnel, principals, teachers, 
        parents, and lay persons.  Nonpublic school administrative units 
        are encouraged to participate on the council to the extent 
        allowed by law.  A plan detailing procedures for selection of 
        membership in this council shall be submitted by the ECSU board 
        of directors to the commissioner. 
           Sec. 19.  Minnesota Statutes 1993 Supplement, section 
        123.58, subdivision 8, is amended to read: 
           Subd. 8.  [EDUCATIONAL PROGRAMS AND SERVICES.] Pursuant to 
        subdivision 6, and rules of the state board of education, The 
        board of directors of each operational ECSU shall submit 
        annually a plan to the public school districts and nonpublic 
        school administrative units within the ECSU, the nonpublic 
        school administrative units, and the commissioner.  The plan 
        shall identify the programs and services which are suggested for 
        implementation by the ECSU during the following school year and 
        shall contain components of long range planning determined by 
        the ECSU in cooperation with the commissioner and other 
        appropriate agencies.  The commissioner may review and recommend 
        modification of the proposed plan and conduct ongoing program 
        reviews.  These programs and services may include, but are not 
        limited to, the following areas: 
           (a) Administrative services and purchasing 
           (b) Curriculum development 
           (c) Data processing 
           (d) Educational television 
           (e) Evaluation and research 
           (f) In-service training 
           (g) Media centers 
           (h) Publication and dissemination of materials 
           (i) Pupil personnel services 
           (j) Regional planning, joint use of facilities, and 
        flexible and year-round school scheduling 
           (k) Secondary, post-secondary, community, adult, and adult 
        vocational education 
           (l) Individualized instruction and services, including 
        services for students with special talents and special needs 
           (m) Teacher personnel services 
           (n) Vocational rehabilitation 
           (o) Health, diagnostic, and child development services and 
        centers 
           (p) Leadership or direction in early childhood and family 
        education 
           (q) Community services 
           (r) Shared time programs. 
           Sec. 20.  Minnesota Statutes 1993 Supplement, section 
        123.58, subdivision 9, is amended to read: 
           Subd. 9.  [FINANCIAL SUPPORT FOR THE EDUCATIONAL 
        COOPERATIVE SERVICE UNITS.] (a) Financial support for ECSU 
        programs and services shall be provided by participating local 
        school districts and nonpublic school administrative units with 
        private, state and federal financial support supplementing as 
        available.  The ECSU board of directors may, in each year, for 
        the purpose of paying any administrative, planning, operating, 
        or capital expenses incurred or to be incurred, assess and 
        certify to each participating school district and nonpublic 
        school administrative unit its proportionate share of any and 
        all expenses.  This share shall be based upon the extent of 
        participation by each district or nonpublic school 
        administrative unit and shall be in the form of a service fee.  
        Each participating district and nonpublic school administrative 
        unit shall remit its assessment to the ECSU board as provided in 
        the ECSU bylaws.  The assessments shall be paid within the 
        maximum levy limitations of each participating district.  No 
        participating school district or nonpublic school administrative 
        unit shall have any additional liability for the debts or 
        obligations of the ECSU except that assessment which has been 
        certified as its proportionate share or any other liability the 
        school district or nonpublic school administrative unit agrees 
        to assume assumes under section 123.35, subdivision 19b. 
           (b) Any property acquired by the ECSU board is public 
        property to be used for essential public and governmental 
        purposes which shall be exempt from all taxes and special 
        assessments levied by a city, county, state or political 
        subdivision thereof.  If the ECSU is dissolved, its property 
        must be distributed to the member public school districts at the 
        time of the dissolution. 
           (c) A school district or nonpublic school administrative 
        unit may elect to withdraw from participation in the ECSU by a 
        majority vote of its full board membership and upon compliance 
        with the applicable withdrawal provisions of the ECSU 
        organizational agreement.  Upon receipt of the withdrawal 
        resolution reciting the necessary facts, the ECSU board shall 
        file a certified copy with the commissioner.  The withdrawal 
        shall be effective on the June 30 following receipt by the board 
        of directors of written notification of the withdrawal at least 
        six months prior to June 30 by February 1 of the same year.  
        Notwithstanding the withdrawal, the proportionate share of any 
        expenses already certified to the withdrawing school district or 
        nonpublic school administrative unit for the ECSU shall be paid 
        to the ECSU board. 
           (d) Notwithstanding paragraph (c), if a member school 
        district of an education district withdraws from an ECSU to 
        comply with subdivision 4, the school district's withdrawal is 
        effective on June 30, following receipt by the board of 
        directors of the district's written notification. 
           (e) The ECSU is a public corporation and agency and its 
        board of directors may make application for, accept and expend 
        private, state and federal funds that are available for programs 
        of educational benefit approved by the commissioner in 
        accordance with rules adopted by the state board of education 
        pursuant to chapter 14.  The commissioner shall not distribute 
        special state aid or federal aid directly to an ECSU in lieu of 
        distribution to a school district within the ECSU which would 
        otherwise qualify for and be entitled to this aid without the 
        consent of the school board of that district. 
           (f) (e) The ECSU is a public corporation and agency and as 
        such, no earnings or interests of the ECSU may inure to the 
        benefit of an individual or private entity. 
           Sec. 21.  Minnesota Statutes 1993 Supplement, section 
        124.155, subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
        aids and credits enumerated in subdivision 2 payable to any 
        school district, education district, or secondary vocational 
        cooperative for that fiscal year shall be adjusted, in the order 
        listed, by an amount equal to (1) the amount the district, 
        education district, or secondary vocational cooperative 
        recognized as revenue for the prior fiscal year pursuant to 
        section 121.904, subdivision 4a, clause (b), plus revenue 
        recognized according to section 121.904, subdivision 4e, minus 
        (2) the amount the district recognizes as revenue for the 
        current fiscal year pursuant to section 121.904, subdivision 4a, 
        clause (b), plus revenue recognized according to section 
        121.904, subdivision 4e.  For the purposes of making the aid 
        adjustment under this subdivision, the amount the district 
        recognizes as revenue for either the prior fiscal year or the 
        current fiscal year pursuant to section 121.904, subdivision 4a, 
        clause (b), plus revenue recognized according to section 
        121.904, subdivision 4e, shall not include any amount levied 
        pursuant to sections 124.226, subdivision 9, 124.912, 
        subdivisions 2, 3, and 5, or a successor provision only for 
        those districts affected, 124.916, subdivisions 1 and 2, 
        124.918, subdivision 6, and 124A.03, subdivision 2; and Laws 
        1992, chapter 499, articles 1, section 20, and 6, section 36.  
        Payment from the permanent school fund shall not be adjusted 
        pursuant to this section.  The school district shall be notified 
        of the amount of the adjustment made to each payment pursuant to 
        this section. 
           Sec. 22.  [124.193] [PROHIBITED AID AND LEVIES.] 
           Unless specifically permitted in the provision authorizing 
        an aid or a levy, cooperative units of government defined in 
        section 123.35, subdivision 19b, paragraph (d), are prohibited 
        from making a property tax levy or qualifying for or receiving 
        any form of state aid. 
           Sec. 23.  [124.2726] [CONSOLIDATION TRANSITION REVENUE.] 
           Subdivision 1.  [ELIGIBILITY AND USE.] A school district 
        that has been reorganized under section 122.23 and has not 
        received revenue under section 124.2725 is eligible for 
        consolidation transition revenue.  Revenue is equal to the sum 
        of aid under subdivision 2 and levy under subdivision 3.  
        Consolidation transition revenue may only be used according to 
        this section.  Revenue must initially be used for the payment of 
        district costs for the early retirement incentives granted by 
        the district under section 122.23, subdivision 20.  Any revenue 
        under subdivision 2 remaining after the payment of district 
        costs for the early retirement incentives must be used to reduce 
        operating debt as defined in section 121.915.  Any additional 
        aid remaining after the reduction of operating debt must be 
        deposited in the district's general fund.  Revenue received 
        under this section shall not be included in the determination of 
        the reduction under section 124A.26, subdivision 1.  
           Subd. 2.  [AID.] Consolidation transition aid is equal to 
        $200 times the number of actual pupil units in the newly created 
        district in the year of consolidation and $100 times the number 
        of actual pupil units in the first year following the year of 
        consolidation.  The number of pupil units used to calculate aid 
        in either year shall not exceed 1,000.  
           Subd. 3.  [LEVY.] If the aid available in subdivision 2 is 
        insufficient to cover the costs of the district under section 
        122.23, subdivision 20, the district may levy the difference 
        over a period of time not to exceed three years.  
           Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
        another district that has received consolidation transition aid 
        within six years of the effective date of the new consolidation, 
        only the pupil units in the district not previously reorganized 
        shall be counted for aid purposes under subdivision 2.  If two 
        districts consolidate and both districts received aid under 
        subdivision 2 within six years of the effective date of the new 
        consolidation, only one quarter of the pupil units in the newly 
        created district shall be used to determine aid under 
        subdivision 2.  
           Sec. 24.  Minnesota Statutes 1993 Supplement, section 
        124.2727, subdivision 6a, is amended to read: 
           Subd. 6a.  [DISTRICT COOPERATION REVENUE.] A district's 
        cooperation revenue is equal to the greater of $50 $67 times the 
        actual pupil units or $25,000. 
           Sec. 25.  Minnesota Statutes 1993 Supplement, section 
        124.2727, subdivision 6d, is amended to read: 
           Subd. 6d.  [REVENUE USES.] (a) A district must place its 
        district cooperation revenue in a reserved account and may only 
        use the revenue to purchase goods and services from entities 
        formed for cooperative purposes or to otherwise provide 
        educational services in a cooperative manner. 
           (b) A district that is was a member of an intermediate 
        school district organized pursuant to chapter 136D may not 
        access revenue under this section on July 1, 1994, must place 
        its district cooperation revenue in a reserved account and must 
        allocate a portion of the reserved revenue for instructional 
        services from entities formed for cooperative services for 
        special education programs and secondary vocational programs.  
        The allocated amount is equal to the levy made according to 
        section 124.2727, subdivision 6, for taxes payable in 1994 
        divided by the actual pupil units in the intermediate school 
        district for fiscal year 1995 times the number of actual pupil 
        units in the school district in 1995.  The district must use 
        5/11 of the revenue for special education and 6/11 of the 
        revenue for secondary vocational education.  The district must 
        demonstrate that the revenue is being used to provide the full 
        range of special education and secondary vocational programs and 
        services available to each child served by the intermediate.  
        The secondary vocational programs and service must meet the 
        requirements established in an articulation agreement developed 
        between the state board of education and the higher education 
        board. 
           (c) A district that was not a member of an intermediate 
        district organized under chapter 136D on July 1, 1994, must 
        spend at least $9 per pupil unit of its district cooperation 
        revenue on secondary vocational programs. 
           Sec. 26.  Minnesota Statutes 1993 Supplement, section 
        124.2727, is amended by adding a subdivision to read: 
           Subd. 9.  [PRORATION.] (a) If the total appropriation 
        available for district cooperation aid for any fiscal year, plus 
        any amount transferred under section 124.14, subdivision 7, is 
        insufficient to pay all districts the full amount of aid earned, 
        the department of education shall reduce each district's 
        district cooperation revenue according to the calculations in 
        paragraphs (b) to (d). 
           (b) If there is insufficient district cooperation aid 
        available, the department must recompute the district 
        cooperation revenue by proportionally reducing the formula 
        allowance and the revenue minimum to the levels that result in 
        an aid entitlement, adjusted by the percentage in section 
        124.195, subdivision 10, equal to the amount available.  The 
        levy amounts must not be recomputed. 
           (c) A district's proration aid reduction is equal to the 
        lesser of zero, or the difference of the existing aid 
        calculation minus the aid amount computed for the district under 
        paragraph (b). 
           (d) If a district's proration aid reduction is less than 
        its revenue reduction, its district cooperation levy authority 
        for the following year must be reduced by the amount of the 
        difference between its revenue reduction and its aid reduction. 
           Sec. 27.  [124.2728] [SPECIAL CONSOLIDATION AID.] 
           Subdivision 1.  [ELIGIBILITY.] A school district that 
        reorganizes under section 122.23 or sections 122.241 to 122.248 
        effective on or after July 1, 1994, is eligible for special 
        consolidation aid under this section.  A district may receive 
        aid under this section for only three years. 
           Subd. 2.  [AID CALCULATION.] Special consolidation aid for 
        a reorganized school district is calculated by computing the sum 
        of: 
           (1) the difference between the total amount of early 
        childhood family education revenue under section 124.2711 
        available to the districts involved in the reorganization in the 
        fiscal year prior to the effective date of reorganization and 
        the maximum amount of early childhood family education revenue 
        available to the reorganized district in the current year; and 
           (2) the difference between the total amount of community 
        education revenue under section 124.2713 available to the 
        districts involved in the reorganization in the fiscal year 
        prior to the reorganization and the maximum amount of community 
        education revenue available to the reorganized district in the 
        current year. 
           Subd. 3.  [AID AMOUNT.] In the fiscal year that the 
        reorganization is effective, special combination aid is equal to 
        the aid calculated under subdivision 2 times 100 percent.  In 
        the fiscal year following the effective date of reorganization, 
        special combination aid is equal to the aid calculated under 
        subdivision 2 times 67 percent.  In the second fiscal year 
        following the effective date of reorganization, special 
        combination aid is equal to the aid calculated under subdivision 
        2 times 33 percent.  
           Sec. 28.  Minnesota Statutes 1993 Supplement, section 
        124.83, subdivision 1, is amended to read: 
           Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
        health and safety revenue for any fiscal year a district, 
        including an intermediate district, must submit to the 
        commissioner of education an application for aid and levy by the 
        date determined by the commissioner.  The application may be for 
        hazardous substance removal, fire and life safety code repairs, 
        labor and industry regulated facility and equipment violations, 
        and health, safety, and environmental management.  The 
        application must include a health and safety program adopted by 
        the school district board.  The program must include the 
        estimated cost, per building, of the program by fiscal year. 
           Sec. 29.  Minnesota Statutes 1993 Supplement, section 
        124.91, subdivision 5, is amended to read: 
           Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
        with its central administrative office located within economic 
        development region one, two, three, four, five, six, seven, 
        eight, nine, and ten may apply to the commissioner of education 
        for ITV revenue up to the greater of .5 percent of the adjusted 
        net tax capacity of the district or $25,000 for the 
        construction, maintenance, and lease costs of an interactive 
        television system for instructional purposes.  The approval by 
        the commissioner of education and the application procedures set 
        forth in subdivision 1 shall apply to the revenue in this 
        subdivision.  In granting the approval, the commissioner must 
        consider whether the district is maximizing efficiency through 
        peak use and off-peak use pricing structures. 
           (b) To obtain ITV revenue, a district may levy an amount 
        not to exceed the district's ITV revenue times the lesser of one 
        or the ratio of: 
           (1) the quotient derived by dividing the adjusted net tax 
        capacity of the district for the year before the year the levy 
        is certified by the actual pupil units in the district for the 
        year prior to the year to which the levy is 
        certified attributable; to 
           (2) 100 percent of the equalizing factor as defined in 
        section 124A.02, subdivision 8, for the year to which the levy 
        is attributable. 
           (c) A district's ITV aid is the difference between its ITV 
        revenue and the ITV levy. 
           (d) The revenue in the first year after reorganization for 
        a district that has reorganized under section 122.22, 122.23, or 
        122.241 to 122.247 shall be the greater of: 
           (1) the revenue computed for the reorganized district under 
        paragraph (a), or 
           (2)(i) for two districts that reorganized, 75 percent of 
        the revenue computed as if the districts involved in the 
        reorganization were separate, or 
           (ii) for three or more districts that reorganized, 50 
        percent of the revenue computed as if the districts involved in 
        the reorganization were separate. 
           Sec. 30.  Minnesota Statutes 1993 Supplement, section 
        124C.60, is amended to read: 
           124C.60 [CAPITAL FACILITIES AND EQUIPMENT GRANTS FOR 
        COOPERATION AND COMBINATION.] 
           Subdivision 1.  [ELIGIBILITY.] Two or more districts that 
        have a cooperation and combination plan approved by the state 
        board of education consolidated under section 122.23 or combined 
        under section 122.242 sections 122.241 to 122.248, may apply are 
        eligible for a capital facilities grant of up to $100,000 under 
        this section.  The grant must be awarded after the districts 
        combine according to sections 122.241 to 122.248.  To qualify 
        the following criteria must be met: 
           (1) the proposed facility changes are part of the plan 
        according to section 122.242, subdivision 10, or the plan 
        adopted by the reorganized district according to section 
        124.243, subdivision 1; 
           (2) the changes proposed to a facility must be needed to 
        accommodate changes in the educational program due to the 
        reorganization; 
           (3) the utilization of the facility for educational 
        programs is at least 85 percent of capacity; and 
           (4) the grant will be used only to remodel or improve 
        existing facilities. 
           Subd. 2.  [PROCEDURES.] The state board shall establish 
        procedures and deadlines for the grant application.  The state 
        board shall review each application and may require 
        modifications consistent with sections 122.241 to 122.248. 
           Subd. 3.  [USE OF GRANT MONEY.] The grant money may be used 
        for any capital expenditures specified in section 124.243 or 
        122.124, subdivision 6, clauses (4), (6), (7), (8), (9), and 
        (10). 
           Sec. 31.  Minnesota Statutes 1992, section 136D.281, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [EXPIRATION.] The intermediate school board may 
        not issue bonds under this section after July 1, 1994. 
           Sec. 32.  Minnesota Statutes 1992, section 136D.741, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [EXPIRATION.] The intermediate school board may 
        not issue bonds under this section after July 1, 1994. 
           Sec. 33.  Minnesota Statutes 1992, section 136D.88, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [EXPIRATION.] The intermediate school board may 
        not issue bonds under this section after July 1, 1994. 
           Sec. 34.  Laws 1992, chapter 499, article 6, section 34, 
        subdivision 2, is amended to read: 
           Subd. 2.  The authority in subdivision 1 expires if the 
        members of the joint school district have not combined according 
        to Minnesota Statutes 1990, section 122.244, by July 1, 1996 
        1997. 
           Sec. 35.  Laws 1993, chapter 224, article 6, section 30, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COOPERATION AND COMBINATION AID.] For aid for 
        districts that cooperate and combine according to Minnesota 
        Statutes, section 124.2725: 
            $3,516,000 $3,848,000   .....    1994
            $3,979,000 $3,647,000   .....    1995
           The 1994 appropriation includes $591,000 for 1993 and 
        $2,925,000 $3,257,000 for 1994. 
           The 1995 appropriation includes $516,000 $574,000 for 1994 
        and $3,463,000 $3,073,000 for 1995. 
           Sec. 36.  [VERDI DEBT.] 
           Subdivision 1.  [REDISTRIBUTION OF VERDI ASSETS AND 
        LIABILITIES.] The commissioner of education shall revise the 
        initial order for the distribution of assets and liabilities 
        issued under Minnesota Statutes, section 122.22, subdivision 20, 
        in the dissolution of former independent school district No. 
        408, Verdi.  The revised order shall specify that an amount 
        equal to the sum of clauses (1) and (2) shall be distributed to 
        independent school districts No. 404, Lake Benton, and No. 583, 
        Pipestone, in proportion to the amount of adjusted net tax 
        capacity in the former Verdi district that was attached to each 
        district. 
           (1) the reorganization operating debt in the former Verdi 
        district as calculated under Minnesota Statutes, section 
        121.915; and 
           (2) the cost of removing the two underground storage tanks 
        from the school building site in the former Verdi district minus 
        the sum of the proceeds from the sale of the site and building 
        and reimbursements related to removing the tanks. 
           Subd. 2.  [DISTRICTS MAY LEVY FOR DEBT.] The Lake Benton 
        and Pipestone school districts may levy according to Minnesota 
        Statutes, section 122.531 for the amount calculated under 
        subdivision 1.  The districts may direct the county auditors to 
        spread the levy only upon property within the boundaries of the 
        former Verdi school district. 
           Subd. 3.  [AID ADJUSTMENT.] The commissioner shall subtract 
        an amount equal to the overpayment of state aids to the former 
        Verdi district from the Lake Benton and Pipestone school 
        districts in proportion to the amount of adjusted net tax 
        capacity in the former Verdi district that was attached to each 
        district. 
           Subd. 4.  [AID TRANSFER.] By December 31, 1995, the 
        Pipestone school district shall transfer to the Lake Benton 
        school district any portion of the amount calculated under 
        subdivision 1 that is attributable to the Pipestone district and 
        that has been paid by the Lake Benton district. 
           Sec. 37.  [DISTRICT COOPERATION HOLD HARMLESS AID.] 
           For fiscal year 1995, the cooperation hold harmless aid for 
        a district that was a member of intermediate school district No. 
        287 is equal to the cooperation formula allowance times the 
        fiscal year 1994 pupil units less the district cooperation 
        revenue for fiscal year 1995. 
           The cooperation formula allowance is equal to the sum of 
        the amounts in clauses (1) to (3):  
           (1) the average per pupil allocation of the regional 
        reporting subsidy grant under Minnesota Statutes 1992, section 
        121.935, subdivision 5, received in fiscal year 1994 by the 
        regional management information center to which the district 
        belonged in fiscal year 1994; 
           (2) the average per pupil allocation of state aid according 
        to Laws 1993, chapter 224, article 6, section 30, subdivision 3, 
        received by the ECSU in which the district was a full member in 
        fiscal year 1994; and 
           (3) the average per pupil allocation of the intermediate 
        district levy certified in 1992 for taxes payable in 1993 under 
        Minnesota Statutes, section 124.2727, subdivision 6, by the 
        intermediate district to which the district belonged in fiscal 
        year 1994. 
           Sec. 38.  [FIRST YEAR OF COOPERATION SPECIFIED.] 
           For the purpose of receiving additional cooperation and 
        combination aid under Minnesota Statutes, section 124.2725, 
        subdivision 6, the first year of cooperation for independent 
        school districts No. 427, Winsted, No. 880, Howard Lake-Waverly, 
        No. 341, Atwater, No. 461, Cosmos, and No. 464, Grove City, is 
        fiscal year 1995. 
           Sec. 39.  [UNDERLEVY AND RECOGNITION.] 
           Notwithstanding Minnesota Statutes, section 124.2727, 
        subdivision 6c, for district cooperation revenue for fiscal year 
        1995, a district's aid shall not be reduced if it does not levy 
        the full amount permitted.  Notwithstanding Minnesota Statutes, 
        section 124.918, subdivision 6, the full amount of school 
        district cooperation levy attributable to fiscal year 1995 shall 
        be recognized in fiscal year 1995. 
           Sec. 40.  [OSLO SCHOOL DISTRICT DISSOLUTION.] 
           If a consolidation vote under Minnesota Statutes, section 
        122.23, involving independent school district No. 442, Oslo, and 
        independent school district No. 2163, Warren-Alvarado, held 
        prior to June 1, 1994, fails in either of the districts, the 
        Oslo district may dissolve under this section.  The dissolution 
        shall occur following the adoption of a resolution by the board 
        calling for the dissolution and shall be effective July 1, 
        1994.  The commissioner of education shall by order determine 
        the plat and the allocation of property, assets, and 
        liabilities, including any outstanding bonded indebtedness, to 
        neighboring districts.  The commissioner shall consider the best 
        educational interests of the students in each of the districts 
        in making the determination.  The order may be amended as 
        necessary.  The commissioner shall inform the county auditors in 
        the affected counties of the order.  Any referendum levy in the 
        district expires.  The school districts to which the district is 
        attached may levy under other provisions of law that would 
        otherwise apply if the district had dissolved under Minnesota 
        Statutes, section 122.22.  
           The school board of the district to which the dissolved 
        district is attached may determine how a levy to eliminate 
        reorganization debt is spread under Minnesota Statutes, section 
        122.531, subdivision 4a, paragraph (b).  Notwithstanding 
        Minnesota Statutes, section 122.531, subdivision 2, referendum 
        revenue in the enlarged district does not cancel unless 
        otherwise scheduled to expire.  The commissioner shall recompute 
        the referendum tax rate or per pupil amount, as applicable, to 
        raise the same amount of revenue in the enlarged district as 
        would have been raised had the dissolution not occurred. 
        Minnesota Statutes, sections 122.531, subdivision 4a, and 
        122.532 shall apply to the dissolution. 
           Sec. 41.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal years indicated. 
           Subd. 2.  [CONSOLIDATION AID.] For consolidation aid 
        according to section 124.2726: 
             $430,000     .....     1995
           The appropriation is based on an entitlement of $505,000 
        for fiscal year 1995. 
           Subd. 3.  [TRANSITION AID FOR INFORMATION SUPPORT.] For 
        information reporting support and software for ESV information 
        systems: 
             $800,000     .....     1995
           This appropriation is to ensure an orderly transition from 
        a state supported system to a system where school districts 
        purchase needed services.  The department must support local 
        school districts in preparing information required by the 
        state.  Data reported to the state must meet state reporting 
        standards.  The amount of this appropriation shall be phased out 
        in the 1996-1997 biennium.  $150,000 of this amount is for 
        additional INTERNET support in school districts.  Up to $300,000 
        of this amount is for ESV system software support only to the 
        extent that it is needed for changes in department reporting 
        requirements. 
           Subd. 4.  [SPECIAL CONSOLIDATION AID.] For special 
        consolidation aid under section 124.2728: 
             $70,000       .......      1995 
           Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
        cooperation revenue: 
             $4,330,000    .......      1995 
           $230,000 of this appropriation is for district cooperation 
        hold harmless aid under section 37. 
           Subd. 6.  [ITV GRANTS; CARVER OR SCOTT COUNTY.] For grants 
        to school districts with their administrative offices in Carver 
        or Scott county for the construction, maintenance, or lease 
        costs of an interactive television system for instructional 
        purposes: 
             $189,000      .......      1995
           Subd. 7.  [CAPITAL FACILITIES GRANTS.] For grants under 
        Minnesota Statutes, section 124C.60: 
             $500,000      .......      1995
           Subd. 8.  [ITV GRANT; CROMWELL.] For a grant to independent 
        school district No. 95, Cromwell: 
             $125,000      .......      1995 
           The grant must be used to construct an interactive 
        television transmission line.  This appropriation is only 
        available to the extent it is matched by the district with local 
        and nonlocal sources.  The district may levy up to $50,000 to 
        provide its share of local sources. 
           Sec. 42.  [REPEALER.] 
           Minnesota Statutes 1992, sections 121.904, subdivision 4e; 
        121.935, subdivision 7; 122.23, subdivision 13a; 122.91, 
        subdivisions 5 and 7; 122.93, subdivision 7; 122.937; 122.94, 
        subdivisions 2, 3, and 6; 122.945; 136D.22, subdivision 3; 
        136D.27; 136D.71, subdivision 2; 136D.73, subdivision 3; 
        136D.74, subdivisions 2a, 2b, and 4; 136D.82, subdivision 3; and 
        136D.87; Minnesota Statutes 1993 Supplement, sections 121.935, 
        subdivision 5; 124.2727, subdivisions 6, 7, and 8; and Laws 
        1992, chapter 499, article 6, section 39, subdivision 3, are 
        repealed. 
           Sec. 43.  [EFFECTIVE DATE.] 
           Sections 36 and 40 are effective the day following final 
        enactment.  Sections 24 and 25 are effective for revenue for 
        fiscal year 1995. 
                                   ARTICLE 7 
                            COMMITMENT TO EXCELLENCE
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        121.11, subdivision 7c, is amended to read: 
           Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
        legislature is committed to establishing a rigorous, 
        results-oriented graduation rule for Minnesota's public school 
        students.  To that end, the state board shall use its rulemaking 
        authority under subdivision 7b to adopt a statewide, 
        results-oriented graduation rule to be implemented starting with 
        students beginning high school ninth grade in the 1996-1997 
        school year.  The board shall not prescribe in rule or otherwise 
        the delivery system, form of instruction, or a single statewide 
        form of assessment that local sites must use to meet the 
        requirements contained in this rule. 
           (b) Assessments used to measure knowledge required by all 
        students for graduation must be developed according to the most 
        current version of professional standards for educational 
        testing. 
           (c) The content of the graduation rule must differentiate 
        between minimum competencies and rigorous standards. 
           (d) The state board shall periodically review and report on 
        the assessment process with the expectation of expanding high 
        school graduation requirements. 
           (e) The state board shall report to the legislature 
        annually by January 15 on its progress in developing and 
        implementing the graduation requirements until such time as all 
        the graduation requirements are implemented. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        124A.225, subdivision 4, is amended to read: 
           Subd. 4.  [REVENUE USE.] Revenue shall be used to reduce 
        and maintain the district's instructor to learner ratios in 
        kindergarten through grade 6 to a level of 1 to 17 on average.  
        The district must prioritize the use of the revenue to attain 
        this level initially in kindergarten and grade 1 and then 
        through the subsequent grades as revenue is available.  The 
        revenue may be used to prepare and use an individualized 
        learning plan for each learner.  A district must not increase 
        the district wide instructor-learner ratios in other grades as a 
        result of reducing instructor-learner ratios in kindergarten 
        through grade 6.  Revenue may not be used to provide instructor 
        preparation time or to provide the district's share of revenue 
        required under section 124.311.  Revenue may be used to continue 
        employment for nonlicensed staff employed in the district on the 
        effective date of Laws 1993, chapter 224, under Minnesota 
        Statutes 1992, section 124.331, subdivision 2.  A school 
        district may use a portion of the revenue reserved under this 
        section to employ up to the same number of full-time equivalent 
        education assistants or aides as the district employed during 
        the 1992-1993 school year under Minnesota Statutes 1992, section 
        124.331, subdivision 2. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        124A.29, subdivision 1, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT, AND PARENTAL 
        INVOLVEMENT REVENUE.] (a) Of a district's basic revenue under 
        section 124A.22, subdivision 2, an amount equal to one percent 
        in fiscal year 1994, two percent in fiscal year 1995, and 2.5 
        percent in fiscal year 1996 and thereafter times the formula 
        allowance times the number of actual pupil units shall be 
        reserved and may be used only to provide staff time for 
        in-service education for programs under section 126.77, 
        subdivision 2, challenging instructional activities and 
        experiences or for staff development programs, for the purpose 
        of improving student achievement of education outcomes plans, 
        including plans for challenging instructional activities and 
        experiences under section 126.70, subdivisions 1 and 
        2a.  Districts may expend an additional amount of basic revenue 
        for staff development based on their needs.  The school board 
        shall initially allocate 50 percent of the revenue to each 
        school site in the district on a per teacher basis, which shall 
        be retained by the school site until used.  The board may retain 
        25 percent to be used for district wide staff development 
        efforts.  The remaining 25 percent of the revenue shall be used 
        to make grants to school sites that demonstrate exemplary use of 
        allocated staff development revenue.  A grant may be used for 
        any purpose authorized under section 126.70 or 126.77, 
        subdivision 2, and determined by the site decision-making team.  
        The site decision-making team must demonstrate to the school 
        board the extent to which staff at the site have met the 
        outcomes of the program.  The board may withhold a portion of 
        initial allocation of revenue if the staff development outcomes 
        are not being met. 
           (b) Of a district's basic revenue under section 124A.22, 
        subdivision 2, an amount equal to $5 times the number of actual 
        pupil units must be reserved and may be used only to provide 
        parental involvement programs that implement section 126.69.  
        Parental involvement programs may include career teacher 
        programs, programs promoting parental involvement in the PER 
        process, coordination of volunteer services, participation in 
        developing, implementing, or evaluating school 
        desegregation/integration plans, and programs designed to 
        encourage community involvement. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        124A.292, subdivision 3, is amended to read: 
           Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
        equals its revenue times the lesser of one or the ratio of: 
           (1) the quotient derived by dividing the district's 
        adjusted net tax capacity per actual pupil unit for the year 
        before the year the levy is certified by the district's actual 
        pupil units for the school year to which the levy is 
        attributable, to 
           (2) the equalizing factor for the school year to which the 
        levy is attributable. 
           Sec. 5.  Minnesota Statutes 1992, section 125.03, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [ASSESSMENT PROFESSIONALS.] When a school board 
        of a school district with 10,000 pupils or more in average daily 
        membership employs a person to administer or interpret 
        individual aptitude, intelligence or personality tests, the 
        person must hold a graduate level degree related to 
        administering and interpreting psychological assessments. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        125.230, subdivision 3, is amended to read: 
           Subd. 3.  [PROGRAM COMPONENTS.] In order to be approved by 
        the board of teaching, a school district's residency program 
        must at minimum include: 
           (1) training to prepare teachers to serve as mentors to 
        teaching residents; 
           (2) a team mentorship approach to expose teaching residents 
        to a variety of teaching methods, philosophies, and classroom 
        environments; 
           (3) ongoing peer coaching and assessment; 
           (4) assistance to the teaching resident in preparing an 
        individual professional development plan that includes goals, 
        activities, and assessment methodologies; and 
           (5) involvement of resource persons from higher 
        collaboration with one or more teacher education institutions, 
        career teachers, and other community experts to provide local or 
        regional professional development seminars or other structured 
        learning experiences for teaching residents. 
           A teaching resident shall not be given resident's direct 
        classroom supervision responsibilities that exceed shall not 
        exceed 80 percent of the instructional time required of a 
        full-time equivalent teacher in the district.  During 
        the remaining time, a teaching resident does not supervise a 
        class, the resident shall participate in professional 
        development activities according to the individual plan 
        developed by the resident in conjunction with the school's 
        mentoring team.  Examples of development activities include 
        observing other teachers, sharing experiences with other 
        teaching residents, and professional meetings and workshops. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        125.230, subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district shall 
        pay a teaching resident a salary equal to 75 percent of 
        the statewide average salary of a first-year teacher with a 
        bachelor's degree in the district.  The resident shall be a 
        member of the local bargaining unit and shall be covered under 
        the terms of the contract, except for salary and benefits, 
        unless otherwise provided in this subdivision.  The school 
        district shall provide health insurance coverage for the 
        resident if the district provides it for teachers, and may 
        provide other benefits upon negotiated agreement. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        125.230, subdivision 6, is amended to read: 
           Subd. 6.  [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 
        school district with an approved teaching residency program may 
        use learning and development revenue for each teaching resident 
        in kindergarten through grade six.  A district also may use the 
        revenue for a paraprofessional who is a person of color enrolled 
        in an approved teacher preparation program.  A school district 
        shall not use a teaching resident to replace an existing 
        teaching position. unless: 
           (1) there is no teacher available who is properly licensed 
        to fill the vacancy, who has been placed on unrequested leave of 
        absence in the district, and who wishes to be reinstated; and 
           (2) the district's collective bargaining agreement includes 
        a memorandum of understanding that permits teaching residents to 
        fill an existing teaching position. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        126.239, subdivision 3, is amended to read: 
           Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
        all or part of the fee for advanced placement or international 
        baccalaureate examinations for pupils in public and nonpublic 
        schools whose circumstances make state payment advisable.  The 
        commissioner shall adopt a schedule for fee subsidies that may 
        allow payment of the entire fee for low-income families, as 
        defined by the commissioner.  The commissioner may also 
        determine the circumstances under which the fee is subsidized, 
        in whole or in part.  The commissioner shall determine 
        procedures for state payments of fees. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        126.70, subdivision 1, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
        board shall use the revenue authorized in section 124A.29 for 
        in-service education for programs under section 126.77, 
        subdivision 2, or for staff development plan plans under this 
        subdivision section.  The board must establish a staff 
        development committee to develop the plan, advise a site 
        decision-making team about the plan, and evaluate staff 
        development efforts at the site level.  A majority of the 
        advisory committee must be teachers representing various grade 
        levels and, subject areas, and special education.  The advisory 
        committee must also include nonteaching staff, parents, and 
        administrators.  Districts shall report staff development 
        results to the commissioner in the form and manner determined by 
        the commissioner. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        126.70, subdivision 2a, is amended to read: 
           Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] (a) The staff 
        development committee shall adopt a staff development plan for 
        the improvement of improving student achievement of education 
        outcomes.  The plan must be consistent with education 
        outcomes determined by the school board that the school board 
        determines.  The plan shall include activities that enhance 
        staff skills for achieving the following outcomes: 
           (1) foster readiness for learning for all pupils; 
           (2) facilitate organizational changes by enabling a 
        site-based team composed of pupils, parents, school personnel, 
        and community members to address pupils' needs; 
           (3) develop programs to increase pupils' educational 
        progress by developing using appropriate outcomes and personal 
        learning goals and by encouraging pupils and their parents to 
        assume responsibility for their education; 
           (4) design and develop programs containing various (3) meet 
        pupils' individual needs by using alternative instructional 
        opportunities that recognize pupils' individual needs and 
        utilize, accommodations, modifications, after-school child care 
        programs, and family and community resources; 
           (5) evaluate the effectiveness of education policies, 
        processes, and products through appropriate evaluation 
        procedures that include multiple criteria and indicators; 
           (6) provide staff time or mentorship oversight for peer 
        review of probationary, continuing contract, and nonprobationary 
        teachers; 
           (7) train elementary and secondary staff to help students 
        learn to resolve conflicts in effective, nonviolent ways; 
           (8) encourage staff to teach and model violence prevention 
        policy and curricula that address issues of sexual and racial 
        harassment; and 
           (9) teach elementary and secondary staff to (4) effectively 
        meet the needs of children with disabilities within the regular 
        classroom setting and other settings by improving the knowledge 
        of school personnel about the legal and programmatic 
        requirements affecting students with disabilities, and by 
        improving staff ability to collaborate, consult with one 
        another, and resolve conflicts; and 
           (5) provide equal educational opportunities for all 
        students that are consistent with the school 
        desegregation/integration and inclusive education policies 
        adopted by school districts and approved by the state. 
           (b) If a school board approves a plan to accomplish any of 
        the purposes listed in paragraph (a), it must also provide 
        challenging instructional activities and experiences that 
        recognize and cultivate students' advanced abilities and talents 
        The staff development committee is strongly encouraged to 
        include in its plan activities for achieving the following 
        outcomes: 
           (1) facilitate organizational changes by enabling a 
        site-based team composed of pupils, parents, school personnel, 
        representatives of children with disabilities, and community 
        members who generally reflect the racial composition of the 
        school to address the pupils' needs; 
           (2) evaluate the effectiveness of education policies, 
        processes, and products through appropriate evaluation 
        procedures that include multiple criteria and indicators; 
           (3) provide effective mentorship oversight and peer review 
        of probationary, continuing contract, and nonprobationary 
        teachers; 
           (4) assist elementary and secondary students in learning to 
        resolve conflicts in effective, nonviolent ways; 
           (5) effectively teach and model violence prevention policy 
        and curricula that address issues of sexual, racial, and 
        religious harassment; and 
           (6) provide challenging instructional activities and 
        experiences, including advanced placement and international 
        baccalaureate programs, that recognize and cultivate students' 
        advanced abilities and talents. 
           Sec. 12.  Laws 1993, chapter 224, article 7, section 28, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ADVANCED PLACEMENT AND INTERNATIONAL 
        BACCALAUREATE PROGRAMS.] For the state advanced placement (AP) 
        and international baccalaureate (IB) programs, including 
        training programs, support programs, and examination fee 
        subsidies: 
             $300,000     .....     1994
             $300,000 $750,000     .....     1995
           Any balance remaining in the first year does not cancel but 
        is available in the second year. 
           Of the fiscal year 1995 amount, $550,000 is for examination 
        fee subsidies.  Notwithstanding Minnesota Statutes, section 
        126.39, subdivision 3, in fiscal year 1995, the commissioner 
        shall pay the fee for one AP or IB examination for the first 
        exam each student takes.  The commissioner shall pay 50 percent 
        of the fee for each additional exam a student takes or more than 
        50 percent if the student meets the low-income guidelines 
        established by the commissioner.  If this amount is not 
        adequate, the commissioner may pay less than 50 percent for the 
        additional exams. 
           Sec. 13.  Laws 1993, chapter 224, article 7, section 28, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NSF MATH-SCIENCE SYSTEMIC INITIATIVE.] To meet 
        requirements for a proposal to the National Science Foundation 
        for a systemic initiative in mathematics and science: 
              $1,500,000      .....      1994
              $1,500,000      .....      1995
           This appropriation is not contingent upon receiving funding 
        from the National Science Foundation.  Any balance remaining in 
        the first year does not cancel but is available in the second 
        year. 
           Sec. 14.  Laws 1993, chapter 224, article 7, section 28, 
        subdivision 11, is amended to read: 
           Subd. 11.  [SCHOOL RESTRUCTURING GRANTS.] For school 
        restructuring grants under section 22: 
              $500,000 $750,000    .....    1995
           This appropriation does not cancel. 
           Up to $100,000 of this amount may be used for a grant to a 
        nonstate organization to develop systemic site decision making 
        models for expenses incurred in fiscal year 1994 and an 
        additional $250,000 of this amount may be used for a grant for 
        this purpose in fiscal year 1995. 
           Sec. 15.  [TEACHER PREPARATION CURRICULUM.] 
           (a) Consistent with Laws 1993, chapter 224, article 12, 
        section 34, the state board of teaching, with the assistance of 
        organizations representing diverse cultures, shall decide 
        whether or not to include in the curriculum for preparing all 
        beginning social studies teachers a study of anthropology that 
        encompasses a study of the indigenous people of the midwest, and 
        a study of history of the indigenous people that encompasses a 
        study of the Minnesota area in precolonial times through the 
        twentieth century. 
           (b) Consistent with Laws 1993, chapter 224, article 12, 
        section 34, the state board of teaching shall ensure that the 
        human relations curriculum of all teacher preparation programs 
        includes components of American Indian language, history, and 
        culture. 
           Sec. 16.  [TIME AND TECHNOLOGY ENHANCED CURRICULUM SCHOOL 
        PILOT PROJECT.] 
           Subdivision 1.  [ESTABLISHMENT.] A three-year pilot project 
        is established to allow independent school district No. 94, 
        Cloquet, to develop a Time and Technology Enhanced Curriculum 
        school.  The purpose of the project is to improve student 
        achievement through individualized instruction and year-round 
        education.  For purposes of Minnesota Statutes, section 126.12, 
        subdivision 1, the pilot program established in this subdivision 
        is a flexible learning year program under Minnesota Statutes, 
        sections 120.59 to 120.67. 
           Subd. 2.  [REPORT.] Independent school district No. 94, 
        Cloquet, shall report on the pilot project to the education 
        committees of the legislature annually by February 1, beginning 
        February 1, 1995, and ending February 1, 1997. 
           Sec. 17.  [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 
        GRANTS.] 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A grant program 
        is established to help school districts work together and with 
        higher education institutions, businesses, local government 
        units, and community organizations in order to facilitate 
        individualized learning and manage information by employing 
        technological advances, especially computers and related 
        products.  Recipients shall use grant proceeds to: 
           (1) develop personalized learning plans designed to give 
        learners more responsibility for their learning success and 
        change the role of teacher to learning facilitator; 
           (2) match and allocate resources; 
           (3) create a curriculum environment that is multiplatform; 
           (4) provide user and contributor access to electronic 
        libraries; 
           (5) schedule activities; 
           (6) automate progress reports; 
           (7) increase collaboration between school districts and 
        sites, and with businesses, higher education institutions, and 
        local government units; 
           (8) correlate state-defined outcomes to curriculum units 
        for each student; 
           (9) increase accountability through a reporting system; and 
           (10) provide technical support, project evaluation, 
        dissemination services, and replication. 
           Subd. 2.  [ELIGIBILITY; APPLICATION.] A grant applicant 
        must be a school district or a group of school districts that 
        demonstrates collaboration with businesses and higher education 
        institutions.  Community organizations and local government 
        units may also be involved.  The commissioner of education shall 
        prescribe the form and manner of applications.  The commissioner 
        shall form an advisory panel consisting of representatives of 
        teachers, school administrators, school boards, parents, 
        students, higher education, and business to assist in the grant 
        selection process.  The commissioner, in consultation with the 
        advisory panel, may award grants to applicants likely to meet 
        the outcomes in subdivision 1. 
           Subd. 3.  [REPORTING.] A grant recipient shall report to 
        the commissioner annually at a time specified by the 
        commissioner on the extent to which it is meeting the outcomes 
        specified in subdivision 1. 
           Sec. 18.  [EDUCATIONAL PERFORMANCE IMPROVEMENT GRANT PILOT 
        PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] An educational performance 
        improvement grant pilot program is established to provide 
        incentives to school districts to improve student achievement 
        and increase accountability for results.  The state board of 
        education may enter into contracts with school districts to 
        award the grants. 
           Subd. 2.  [ELIGIBILITY; APPLICATION.] A school district is 
        eligible to apply for an educational performance improvement 
        grant.  The application shall be on a form approved by the 
        commissioner of education.  The commissioner shall make 
        recommendations to the state board of education on which 
        districts should be considered for a grant contract.  The 
        commissioner shall give priority to school districts: 
           (1) in which at least one school has received a school 
        improvement incentive grant under Minnesota Statutes 1993 
        Supplement, section 121.602, subdivision 5; and 
           (2) that demonstrate a commitment to increasing 
        accountability by using a results-oriented system for measuring 
        student achievement. 
           Subd. 3.  [CONTRACT.] The state board of education may 
        enter into a one-year contract with a school district for the 
        purpose of awarding an educational performance improvement 
        grant.  The state board shall award a grant only for measurable 
        gains in student achievement.  The terms of the contract shall 
        at minimum address: 
           (1) the criteria and assessments to be used in measuring 
        student achievement; 
           (2) the district's baseline level of student achievement; 
           (3) the level of student achievement to be reached under 
        the contract; 
           (4) a timeline for determining whether the contract goals 
        have been met; and 
           (5) at the discretion of the state board, provisions 
        governing the award of a partial grant to the district if the 
        contract goals are not fully met. 
           Subd. 4.  [REPORT.] The state board of education shall make 
        a preliminary report on the pilot project to the education 
        committees of the legislature by February 15, 1995, and a final 
        report by January 15, 1996. 
           Sec. 19.  [APPROPRIATION.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education in the fiscal year designated. 
           Subd. 2.  [TIME AND TECHNOLOGY ENHANCED CURRICULUM.] For a 
        grant to independent school district No. 94, Cloquet, for the 
        time and technology enhanced curriculum pilot project: 
              $83,000      .......      1995  
           Subd. 3.  [TECHNOLOGY GRANTS.] For instructional 
        transformation through technology grants: 
              $1,600,000   .......      1995 
           The amount appropriated under this section does not cancel 
        but is available until June 30, 1996. 
           Subd. 4.  [EDUCATIONAL PERFORMANCE IMPROVEMENT GRANTS.] For 
        an educational performance improvement grant pilot project under 
        section 10: 
              $800,000      .......      1995 
           The state board of education shall enter into contracts to 
        award at least three grants, one each to an urban, suburban, and 
        rural school district.  This appropriation is available until 
        June 30, 1996, unless the commissioner has entered into a 
        contract and has certified to the commissioner of finance the 
        amount needed to make payments on the contract.  Any remaining 
        appropriation shall cancel June 30, 1996.  
           Subd. 5.  [COALITION FOR EDUCATION REFORM AND 
        ACCOUNTABILITY.] For support for the activities of the coalition 
        for education reform and accountability as established in Laws 
        1993, chapter 224, article 1, section 35: 
              $50,000      .......      1995 
           Sec. 20.  [EFFECTIVE DATE.] 
           Sections 2; 14; 15; and 17 are effective the day following 
        final enactment. 
                                   ARTICLE 8 
                            OTHER EDUCATION PROGRAMS 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        121.11, subdivision 7d, is amended to read: 
           Subd. 7d.  [DESEGREGATION DESEGREGATION/INTEGRATION, 
        INCLUSIVE EDUCATION, AND LICENSURE RULES.] (a) The state board 
        may make rules relating to desegregation 
        desegregation/integration, inclusive education, and licensure of 
        school personnel not licensed by the board of teaching. 
           (b) In adopting a rule related to school 
        desegregation/integration, the state board shall address the 
        need for equal educational opportunities for all students and 
        racial balance as defined by the state board.  
           Sec. 2.  [121.1601] [OFFICE OF DESEGREGATION/INTEGRATION.] 
           Subdivision 1.  [ESTABLISHMENT.] (a) An office of 
        desegregation/integration is established in the department of 
        education to coordinate and support activities related to 
        student enrollment, student and staff recruitment and retention, 
        transportation, and interdistrict cooperation among metropolitan 
        school districts.  
           (b) At the request of a metropolitan school district 
        involved in cooperative desegregation/integration efforts, the 
        office shall perform any of the following activities: 
           (1) assist districts with interdistrict student transfers, 
        including student recruitment, counseling, placement, and 
        transportation; 
           (2) coordinate and disseminate information about schools 
        and programs; 
           (3) assist districts with new magnet schools and programs; 
           (4) assist districts in providing staff development and 
        in-service training; and 
           (5) coordinate and administer staff exchanges. 
           (c) The office shall collect data on the efficacy of 
        districts' desegregation/integration efforts and make 
        recommendations based on the data.  The office shall 
        periodically consult with the metropolitan council to coordinate 
        school desegregation/integration efforts with the housing, 
        social, economic, and infrastructure needs of the metropolitan 
        area.  The office shall develop a process for resolving 
        students' disputes and grievances about student transfers under 
        a desegregation/integration plan.  
           Subd. 2.  [COORDINATION.] The commissioner shall coordinate 
        the office activities under subdivision 1 with new or existing 
        department and state board of education efforts to accomplish 
        school desegregation/integration.  The commissioner may request 
        information or assistance from, or contract with, any state or 
        local agency or officer, local unit of government, or recognized 
        expert to assist the commissioner in performing the activities 
        described in subdivision 1.  
           Subd. 3.  [ADVISORY BOARD.] The commissioner shall 
        establish an advisory board composed of: 
           (1) eight superintendents, each of whom shall be selected 
        by the superintendents of the school districts located in whole 
        or in part within each of the eight metropolitan districts 
        established under section 473.123, subdivision 3c; and 
           (2) one person each selected by the Indian Affairs Council, 
        the Asian-Pacific Minnesotans, the Council on Black Minnesotans, 
        and the Spanish Speaking Affairs Council. 
           The advisory board shall advise the office on complying 
        with the requirements under subdivision 1.  The advisory board 
        may solicit comments from teachers, parents, students, and 
        interested community organizations and others. 
           Sec. 3.  Minnesota Statutes 1992, section 121.912, 
        subdivision 5, is amended 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. 4.  Minnesota Statutes 1992, section 123.3514, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEFINITIONS.] For purposes of this section, an 
        "eligible institution" means a Minnesota public post-secondary 
        institution, a private, nonprofit two-year trade and technical 
        school granting associate degrees, an opportunities 
        industrialization center accredited by the north central 
        association of colleges and schools, or a private, residential, 
        two-year or four-year, liberal arts, degree-granting college or 
        university located in Minnesota.  "Course" means a course or 
        program.  
           Sec. 5.  Minnesota Statutes 1992, section 124.214, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
        sections 270.07, 375.192, or otherwise, the net tax capacity of 
        any school district for any taxable year is changed after the 
        taxes for that year have been spread by the county auditor and 
        the local tax rate as determined by the county auditor based 
        upon the original net tax capacity is applied upon the changed 
        net tax capacities, the county auditor shall, prior to February 
        1 of each year, certify to the commissioner of education the 
        amount of any resulting net revenue loss that accrued to the 
        school district during the preceding year.  Each year, the 
        commissioner shall pay an abatement adjustment to the district 
        in an amount calculated according to the provisions of this 
        subdivision.  This amount shall be deducted from the amount of 
        the levy authorized by section 275.48 124.912, subdivision 9.  
        The amount of the abatement adjustment shall be the product of:  
           (1) the net revenue loss as certified by the county 
        auditor, times 
           (2) the ratio of:  
           (a) the sum of the amounts of the district's certified levy 
        in the preceding year according to the following:  
           (i) section 124A.23 if the district receives general 
        education aid according to that section, or section 124B.20, if 
        the education district of which the district is a member 
        receives general education aid according to that section; 
           (ii) section 124.226, subdivisions 1 and 4, if the district 
        receives transportation aid according to section 124.225; 
           (iii) section 124.243, if the district receives capital 
        expenditure facilities aid according to that section; 
           (iv) section 124.244, if the district receives capital 
        expenditure equipment aid according to that section; 
           (v) section 124.83, if the district receives health and 
        safety aid according to that section; 
           (vi) sections 124.2713, 124.2714, and 124.2715, if the 
        district receives aid for community education programs according 
        to any of those sections; 
           (vii) section 275.125, subdivision 8b, if the district 
        receives early childhood family education aid according to 
        section 124.2711; 
           (viii) section 124.321, subdivision 3, if the district 
        receives special education levy equalization aid according to 
        that section; 
           (ix) section 124A.03, subdivision 1g, if the district 
        receives referendum equalization aid according to that section; 
        and 
           (x) section 124A.22, subdivision 4a, if the district 
        receives training and experience aid according to that section; 
           (b) to the total amount of the district's certified levy in 
        the preceding October, plus or minus auditor's adjustments. 
           Sec. 6.  Minnesota Statutes 1992, section 124.278, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBLE DISTRICT.] A district is eligible 
        for reimbursement under this section if the district has: 
           (1) a minority enrollment of more than ten percent; or 
           (2) a desegregation/integration plan approved by the state 
        board of education to provide equal educational opportunities 
        for all students. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        124.6469, subdivision 3, is amended to read: 
           Subd. 3.  [PROGRAM REIMBURSEMENT.] (a) State funds are 
        provided to reimburse school breakfasts.  Each school year, the 
        state shall reimburse schools in the amount of 5.1 cents for 
        each fully paid breakfast and for each free and reduced price 
        breakfast not eligible for the "severe need" rate. 
           (b) In addition to paragraph (a), each school year the 
        state shall reimburse schools 10.5 cents for each free and 
        reduced price breakfast not eligible for the "severe need" rate 
        if between 33 and 40 percent of the school lunches served during 
        the second preceding school year were served free or at a 
        reduced price. 
           Sec. 8.  Minnesota Statutes 1992, section 124.6472, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BREAKFAST REQUIRED.] A school district 
        shall offer a school breakfast program in every school building 
        in which at least 40 33 percent of the school lunches served 
        during the second preceding school year were served free or at a 
        reduced price. 
           Sec. 9.  Minnesota Statutes 1992, section 124.912, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [ABATEMENT LEVY.] (a) Each year, a school 
        district may levy an amount to replace the net revenue lost to 
        abatements that have occurred under chapter 278, section 270.07, 
        375.192, or otherwise.  The maximum abatement levy is the sum of:
           (1) the amount of the net revenue loss determined under 
        section 124.214, subdivision 2, that is not paid in state aid 
        including any aid amounts not paid due to proration; 
           (2) the difference of (i) the amount of any abatements that 
        have been reported by the county auditor for the first six 
        months of the calendar year during which the abatement levy is 
        certified that the district chooses to levy, (ii) less any 
        amount actually levied under this clause that was certified in 
        the previous calendar year for the first six months of the 
        previous calendar year; and 
           (3) an amount equal to any interest paid on abatement 
        refunds.  
           (b) A district may spread this levy over a period not to 
        exceed three years. 
           By July 15, the county auditor shall separately report the 
        abatements that have occurred during the first six calendar 
        months of that year to the commissioner of education and each 
        school district located within the county. 
           Sec. 10.  Minnesota Statutes 1992, section 124.914, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (1) In 
        each year in which so required by this subdivision, a district 
        shall make an additional levy to eliminate its statutory 
        operating debt, determined as of June 30, 1977, and certified 
        and adjusted by the commissioner.  This levy shall not be made 
        in more than 20 30 successive years and each year before it is 
        made, it must be approved by the commissioner and the approval 
        shall specify its amount.  This levy shall be an amount which is 
        equal to the amount raised by a levy of a net tax rate of 1.66 
        percent times the adjusted net tax capacity of the district for 
        the preceding year for taxes payable in 1991 and thereafter; 
        provided that in the last year in which the district is required 
        to make this levy, it shall levy an amount not to exceed the 
        amount raised by a levy of a net tax rate of 1.66 percent times 
        the adjusted net tax capacity of the district for the preceding 
        year for taxes payable in 1991 and thereafter.  When the sum of 
        the cumulative levies made pursuant to this subdivision and 
        transfers made according to section 121.912, subdivision 4, 
        equals an amount equal to the statutory operating debt of the 
        district, the levy shall be discontinued. 
           (2) The district shall establish a special account in the 
        general fund which shall be designated "appropriated fund 
        balance reserve account for purposes of reducing statutory 
        operating debt" on its books and records.  This account shall 
        reflect the levy authorized pursuant to this subdivision.  The 
        proceeds of this levy shall be used only for cash flow 
        requirements and shall not be used to supplement district 
        revenues or income for the purposes of increasing the district's 
        expenditures or budgets. 
           (3) Any district which is required to levy pursuant to this 
        subdivision shall certify the maximum levy allowable under 
        section 124A.23, subdivision 2, in that same year. 
           (4) Each district shall make permanent fund balance 
        transfers so that the total statutory operating debt of the 
        district is reflected in the general fund as of June 30, 1977. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        124.914, subdivision 4, is amended to read: 
           Subd. 4.  [1992 OPERATING DEBT.] (a) Each year For taxes 
        payable for calendar year 2003 and earlier, a district that has 
        filed a plan pursuant to section 121.917, subdivision 4, may 
        levy, with the approval of the commissioner, to eliminate a 
        deficit in the net unappropriated balance in the operating funds 
        of the district, determined as of June 30, 1992, and certified 
        and adjusted by the commissioner.  Each year this levy may be an 
        amount not to exceed the lesser of: 
           (1) an amount raised by a levy of a net tax rate of one 
        percent times the adjusted net tax capacity; or 
           (2) $100,000. 
        This amount shall be reduced by referendum revenue authorized 
        under section 124A.03 pursuant to the plan filed under section 
        121.917.  However, the total amount of this levy for all years 
        it is made shall not exceed the amount of the deficit in the net 
        unappropriated balance in the operating funds of the district as 
        of June 30, 1992.  When the cumulative levies made pursuant to 
        this subdivision equal the total amount permitted by this 
        subdivision, the levy shall be discontinued.  
           (b) A district, if eligible, may levy under this 
        subdivision or subdivision 2 or 3, or under section 122.531, 
        subdivision 4a, or Laws 1992, chapter 499, article 7, sections 
        16 or 17, but not under more than one. 
           (c) The proceeds of this levy shall be used only for cash 
        flow requirements and shall not be used to supplement district 
        revenues or income for the purposes of increasing the district's 
        expenditures or budgets.  
           (d) Any district that levies pursuant to this subdivision 
        shall certify the maximum levy allowable under section 124A.23, 
        subdivision 2, in that same year. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        124A.225, subdivision 4, is amended to read: 
           Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
        to either paragraph (b), (c), or (d). 
           (b) Revenue shall be used to reduce and maintain the 
        district's instructor to learner ratios in kindergarten through 
        grade 6 to a level of 1 to 17 on average. The district must 
        prioritize the use of the revenue to attain this level initially 
        in kindergarten and grade 1 and then through the subsequent 
        grades as revenue is available.  
           (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
        district with exceptional need as defined in subdivision 6, 
        paragraph (a), may use the revenue to reduce and maintain the 
        district's instructor-to-learner ratios in kindergarten through 
        grade 6 to a level that is at least 2.0 less than the district's 
        adopted staffing ratio, if the remaining learning and 
        development revenue is used to continue or initiate staffing 
        patterns that meet the needs of a diverse student population.  
        Programs to meet the needs of a diverse student population may 
        include programs for at-risk pupils and learning enrichment 
        programs. 
           (d) For fiscal year 1995 only, in any school building that 
        meets the characteristics of exceptional need as defined in 
        subdivision 6, paragraph (b), a district may use the revenue to 
        employ education assistants or aides supervised by a learner's 
        regular instructor to assist learners in those school buildings. 
           (e) The revenue may be used to prepare and use an 
        individualized learning plan for each learner.  A district must 
        not increase the district wide instructor-learner ratios in 
        other grades as a result of reducing instructor-learner ratios 
        in kindergarten through grade 6.  Revenue may not be used to 
        provide instructor preparation time or to provide the district's 
        share of revenue required under section 124.311.  Revenue may be 
        used to continue employment for nonlicensed staff employed in 
        the district on the effective date of Laws 1993, chapter 224, 
        under Minnesota Statutes 1992, section 124.331, subdivision 2. 
           Sec. 13.  Minnesota Statutes 1993 Supplement, section 
        124A.225, is amended by adding a subdivision to read: 
           Subd. 6.  [EXCEPTIONAL NEED DEFINED.] (a) A school district 
        is considered to have exceptional need if the district has the 
        following characteristics: 
           (1) ten percent or more of the district's pupils are 
        eligible for free and reduced lunch as of October 1 of the 
        previous fiscal year; 
           (2) ten percent or more of the district's pupils are 
        students of color; 
           (3) the district's adjusted net tax capacity divided by its 
        pupil units for the current year is less than $3,500; and 
           (4) the district's general education revenue per pupil unit 
        is less than the average general education revenue per pupil 
        unit for the economic development region in which the district 
        is located. 
           (b) A school building is considered to have exceptional 
        need if the school building has the following characteristics: 
           (1) 50 percent or more of the school building's pupils are 
        eligible for free and reduced lunch as of October 1 of the 
        previous fiscal year; 
           (2) the adjusted net tax capacity of the district in which 
        the school building is located, divided by the district's pupil 
        units for the current year, is less than $3,500; and 
           (3) the district's general education revenue per pupil unit 
        is less than the average general education revenue per pupil 
        unit for the economic development region in which the district 
        is located. 
           Sec. 14.  Minnesota Statutes 1993 Supplement, section 
        125.05, subdivision 1a, is amended to read: 
           Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
        (a) The board of teaching shall issue licenses under its 
        jurisdiction to persons the board finds to be qualified and 
        competent for their respective positions. 
           (b) The board shall require a person to successfully 
        complete an examination of skills in reading, writing, and 
        mathematics before being admitted to a post-secondary teacher 
        preparation program approved by the board if that person seeks 
        to qualify for granted an initial teaching license to provide 
        direct instruction to pupils in prekindergarten, elementary, 
        secondary, or special education programs.  The board shall 
        require colleges and universities offering a board approved 
        teacher preparation program to provide remedial assistance that 
        includes a formal diagnostic component to persons enrolled in 
        their institution who did not achieve a qualifying score on the 
        skills examination, including those for whom English is a second 
        language.  The colleges and universities must provide assistance 
        in the specific academic areas of deficiency in which the person 
        did not achieve a qualifying score.  School districts must 
        provide similar, appropriate, and timely remedial assistance 
        that includes a formal diagnostic component and mentoring to 
        those persons employed by the district who completed their 
        teacher education program outside the state of Minnesota, 
        received a one-year license to teach in Minnesota and did not 
        achieve a qualifying score on the skills examination, including 
        those persons for whom English is a second language. 
           (c) A person who has completed an approved teacher 
        preparation program and obtained a one-year license to teach, 
        but has not successfully completed the skills examination, may 
        renew the one-year license for two additional one-year periods.  
        Each renewal of the one-year license is contingent upon the 
        licensee: 
           (1) providing evidence of participating in an approved 
        remedial assistance program provided by a school district or 
        post-secondary institution that includes a formal diagnostic 
        component in the specific areas in which the licensee did not 
        obtain qualifying scores; and 
           (2) attempting to successfully complete the skills 
        examination during the period of each one-year license. 
           (d) The board of teaching shall grant continuing licenses 
        only to those persons who have met board criteria for granting a 
        continuing license, which includes successfully completing the 
        skills examination in reading, writing, and mathematics. 
           Sec. 15.  Minnesota Statutes 1992, section 125.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS FOR REVOCATION.] The board of 
        teaching or the state board of education, whichever has 
        jurisdiction over a teacher's licensure, may, on the written 
        complaint of the board employing a teacher, or of a teacher 
        organization, or of any other interested person, which complaint 
        shall specify the nature and character of the charges, suspend 
        or revoke such teacher's license to teach for any of the 
        following causes: 
           (1) Immoral character or conduct; 
           (2) Failure, without justifiable cause, to teach for the 
        term of the teacher's contract; 
           (3) Gross inefficiency or willful neglect of duty; or 
           (4) Failure to meet licensure requirements; or 
           (5) Fraud or misrepresentation in obtaining a license. 
           For purposes of this subdivision, the board of teaching is 
        delegated the authority to suspend or revoke coaching licenses 
        under the jurisdiction of the state board of education. 
           Sec. 16.  Minnesota Statutes 1993 Supplement, section 
        125.138, subdivision 9, is amended to read: 
           Subd. 9.  [CRITERIA.] The department of education shall 
        evaluate proposals using the following criteria: 
           (1) evidence of collaborative arrangements between 
        post-secondary educators and early childhood through grade 12 
        educators; 
           (2) evidence that outstanding early childhood through grade 
        12 educators will be involved in post-secondary classes and 
        programs, including presentations, discussions, teaming, and 
        responsibility for teaching some post-secondary courses; 
           (3) evidence that post-secondary educators will have direct 
        experience working in a classroom or school district, including 
        presentations, discussions, teaming, and responsibility for 
        teaching some early childhood through grade 12 classes; and 
           (4) evidence of adequate financial support from employing 
        and receiving institutions; and 
           (5) evidence that collaboration between post-secondary 
        educators and early childhood through grade 12 educators will 
        enable school districts to better provide equal educational 
        opportunities for all students. 
           Sec. 17.  Minnesota Statutes 1993 Supplement, section 
        125.185, subdivision 4, is amended to read: 
           Subd. 4.  [LICENSE AND RULES.] (a) The board shall adopt 
        rules to license public school teachers and interns subject to 
        chapter 14. 
           (b) The board shall adopt rules requiring successful 
        completion of an examination of a person to successfully 
        complete a skills examination in reading, writing, and 
        mathematics before being admitted to a teacher preparation 
        program as a requirement for initial teacher licensure.  Such 
        rules shall require college and universities offering a board 
        approved teacher preparation program to provide remedial 
        assistance to persons who did not achieve a qualifying score on 
        the skills examination, including those for whom English is a 
        second language. 
           (c) The board shall adopt rules to approve teacher 
        preparation programs. 
           (d) The board shall provide the leadership and shall adopt 
        rules 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 teacher preparation 
        program evaluation to assure program effectiveness based on 
        proficiency of graduates in demonstrating attainment of program 
        outcomes. 
           (e) The board shall adopt rules requiring successful 
        completion of an examination of general pedagogical knowledge 
        and examinations of licensure-specific teaching skills.  The 
        rules shall be effective on the dates determined by the board, 
        but not later than July 1, 1999. 
           (f) The board shall adopt rules requiring teacher educators 
        to work directly with elementary or secondary school teachers in 
        elementary or secondary schools to obtain periodic exposure to 
        the elementary or secondary teaching environment. 
           (g) The board shall grant licenses to interns and to 
        candidates for initial licenses. 
           (h) The board shall design and implement an assessment 
        system which requires a candidate for an initial license and 
        first continuing license to demonstrate the abilities necessary 
        to perform selected, representative teaching tasks at 
        appropriate levels. 
           (i) The board shall receive recommendations from local 
        committees as established by the board for the renewal of 
        teaching licenses. 
           (j) 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.  The board shall not establish any expiration date for 
        application for life licenses. 
           (k) With regard to post-secondary vocational education 
        teachers the board of teaching shall adopt and maintain as its 
        rules the rules of the state board of technical colleges. 
           Sec. 18.  Minnesota Statutes 1992, section 125.188, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
        that is an alternative to the post-secondary teacher preparation 
        program as a means to acquire an entrance license is 
        established.  The program may be offered in any instructional 
        field. 
           (b) To participate in the alternative preparation program, 
        the candidate must: 
           (1) have a bachelor's degree; 
           (2) pass an examination of skills in reading, writing, and 
        mathematics as required by section 125.05; 
           (3) have been offered a job to teach in a school district, 
        group of districts, or an education district approved by the 
        board of teaching to offer an alternative preparation licensure 
        program; 
           (4)(i) have a college major in the subject area to be 
        taught; or 
           (ii) have five years of experience in a field related to 
        the subject to be taught; and 
           (5) document successful experiences working with children. 
           (c) An alternative preparation license is of one year 
        duration and is issued by the board of teaching to participants 
        on admission to the alternative preparation program.  
           (d) The board of teaching shall ensure that one of the 
        purposes of this program is to enhance the school 
        desegregation/integration policies adopted by the state.  
           Sec. 19.  Minnesota Statutes 1993 Supplement, section 
        125.231, subdivision 1, is amended to read: 
           Subdivision 1.  [TEACHER MENTORING PROGRAMS.] School 
        districts are encouraged to develop teacher mentoring programs 
        for teachers new to the profession or district, including 
        teaching residents, teachers of color, teachers with special 
        needs, or experienced teachers in need of peer coaching.  
           Sec. 20.  Minnesota Statutes 1993 Supplement, section 
        125.231, subdivision 4, is amended to read: 
           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; and 
           (8) retain teachers of color. 
           Sec. 21.  Minnesota Statutes 1993 Supplement, section 
        125.623, subdivision 3, is amended to read: 
           Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
        shall recruit persons of color to be teachers in elementary, 
        secondary, early childhood or parent education, and provide 
        support in linking program participants with jobs in the 
        recipient's school district. 
           (b) A grant recipient shall establish an advisory council 
        composed of representatives of communities of color. 
           (c) A grant recipient, with the assistance of the advisory 
        council, shall recruit high school students and other persons, 
        including educational paraprofessionals, support them through 
        the higher education application and admission process, advise 
        them while enrolled and link them with support resources in the 
        college or university and the community. 
           (d) A grant recipient shall award stipends to students of 
        color enrolled in an approved licensure program to help cover 
        the costs of tuition, student fees, supplies, and books.  
        Stipend awards must be based on a student's financial need and 
        students must apply for any additional financial aid they are 
        eligible for to supplement this program.  No more than ten 
        percent of the grant may be used for costs of administering the 
        program.  Students must agree to teach in the grantee school 
        district for at least two years after licensure.  If the 
        district has no licensed positions open, the student may teach 
        in another district in Minnesota. 
           (e) The commissioner of education shall consider the 
        following criteria in awarding grants: 
           (1) whether the program is likely to increase the 
        recruitment and retention of students of color in teaching; 
           (2) whether grant recipients will recruit paraprofessionals 
        from the district to work in its schools; and 
           (3) whether grant recipients will establish or have a 
        mentoring program for students of color. 
           Sec. 22.  Minnesota Statutes 1993 Supplement, section 
        125.706, is amended to read: 
           125.706 [PREPARATION TIME.] 
           Beginning with agreements effective July 1, 1995, and 
        thereafter, all collective bargaining agreements for teachers 
        provided for under chapter 179A, must include provisions for 
        preparation time or a provision indicating that the parties to 
        the agreement chose not to include preparation time in the 
        contract. 
           If the parties cannot agree on preparation time the 
        following provision shall apply and be incorporated as part of 
        the agreement:  "Within the student day for every 25 minutes of 
        classroom instructional time, a minimum of five additional 
        minutes of preparation time shall be provided to each licensed 
        teacher.  Preparation time shall be provided in one or two 
        uninterrupted blocks during the student day.  Exceptions to this 
        may be made by mutual agreement between the district and the 
        exclusive representative of the teachers." 
           Sec. 23.  [126.43] [SUMMER CULTURAL EXCHANGE GRANT 
        PROGRAM.] 
           Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] A 
        cultural exchange grant program is established to develop and 
        create opportunities for children and staff of different ethnic, 
        racial, and other cultural backgrounds to experience educational 
        and social exchange.  Student and staff exchanges under this 
        section may only take place between a district with a 
        desegregation plan approved by the state board of education and 
        a district without a desegregation plan.  Participating school 
        districts shall offer summer programs for credit with the goals 
        set forth in paragraphs (a) to (d). 
           (a) The program shall develop curriculum reflective of 
        particular ethnic, racial, and other cultural aspects of various 
        demographic groups in the state. 
           (b) The program shall develop immersion programs that are 
        coordinated with the programs offered in paragraph (a). 
           (c) The program shall create opportunities for students 
        from across the state to enroll in summer programs in school 
        districts other than the one of residence, or in other schools 
        within their district of residence. 
           (d) The program shall create opportunities for staff 
        exchanges on a cultural basis. 
           Subd. 2.  [CULTURAL EXCHANGE GRANTS.] A school district 
        together with a group of school districts, a cooperative 
        governmental unit, the center for arts and education, or a 
        post-secondary institution may apply for cultural exchange 
        grants.  The commissioner of education shall determine grant 
        recipients and may adopt application guidelines.  The grants 
        must be competitively determined and applicants must demonstrate:
           (1) the capacity to develop a focused curriculum that 
        reflects the particular ethnic, racial, and other cultural 
        aspects of the community in which the school where the program 
        is offered is located; 
           (2) the capacity to develop immersion programs coordinated 
        with the curriculum developed in clause (1); 
           (3) the capacity to coordinate a cultural exchange program 
        with other curriculum programs to assure continuity in a pupils 
        education; 
           (4) the capacity to maximize diversity of ethnic, racial, 
        and other cultural backgrounds of participants; 
           (5) that the application is jointly developed by 
        participants; and 
           (6) that the outcomes of the exchange program are clearly 
        articulated. 
           Subd. 3.  [GRANT USE.] The grants may be used for staff 
        time including salary and benefit expenses and costs for 
        substitute staff, travel expenses, curriculum materials, and any 
        other expense needed to meet the goals of the program.  Grant 
        proceeds also may be used for transportation, board, and lodging 
        expenses for students.  
           Sec. 24.  [126.84] [MALE RESPONSIBILITY AND FATHERING 
        GRANTS.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
        education, in consultation with the commissioner of human 
        services, shall make male responsibility and fathering grants to 
        youth or parenting programs that collaborate with school 
        districts to educate young people, particularly males ages ten 
        to 21, on the responsibilities of parenthood. 
           Subd. 2.  [MATCHING MONEY.] Each dollar of state money must 
        be matched with at least 50 cents of nonstate money including 
        in-kind contributions.  Those programs with a higher match will 
        have a greater chance of receiving a grant. 
           Subd. 3.  [EXPECTED OUTCOMES.] Grant recipients shall use 
        the funds for programs designed to prevent teen pregnancy and to 
        prevent crime in the long term.  Recipient programs must assist 
        youth to: 
           (1) understand the connection between sexual behavior, 
        adolescent pregnancy, and the roles and responsibilities of 
        marriage and parenting; 
           (2) understand the long-term responsibility of fatherhood; 
           (3) understand the importance of fathers in the lives of 
        children; 
           (4) acquire parenting skills and knowledge of child 
        development; and 
           (5) find community support for their roles as fathers and 
        nurturers of children. 
           Subd. 4.  [GRANT APPLICATIONS.] (a) An application for a 
        grant may be submitted by a youth or parenting program whose 
        purpose is to reduce teen pregnancy or teach child development 
        and parenting skills in collaboration with a school district.  
        Each grant application must include a description of the 
        program's structure and components, including collaborative and 
        outreach efforts; an implementation and evaluation plan to 
        measure the program's success; a plan for using males as 
        instructors and mentors; and a cultural diversity plan to ensure 
        that staff or teachers will reflect the cultural backgrounds of 
        the population served and that the program content is culturally 
        sensitive. 
           (b) Grant recipients must, at a minimum, provide education 
        in responsible parenting and child development, responsible 
        decision-making related to marriage and relationships, and the 
        legal implications of paternity.  Grant recipients also must 
        provide public awareness efforts in the collaborating school 
        district.  Grant recipients may offer support groups, health and 
        nutrition education, and mentoring and peer teaching. 
           (c) A grant applicant must establish an advisory committee 
        to assist the applicant in planning and implementation of a 
        grant.  The advisory committee must include student 
        representatives, adult males from the community, representatives 
        of community organizations, teachers, parent educators, and 
        representatives of family social service agencies. 
           Subd. 5.  [ADMINISTRATION.] The commissioner of education 
        shall administer male responsibility and fathering grants.  The 
        commissioner shall establish a grant review committee composed 
        of teachers and representatives of community organizations, 
        student organizations, and education or family social service 
        agencies that offer parent education programs. 
           Subd. 6.  [REPORT.] The commissioner shall report to the 
        legislature on the progress of the male responsibility and 
        fathering programs by January 15, 1996. 
           Sec. 25.  Minnesota Statutes 1993 Supplement, section 
        127.46, is amended to read: 
           127.46 [SEXUAL, RELIGIOUS, AND RACIAL HARASSMENT AND 
        VIOLENCE POLICY.] 
           Each school board shall adopt a written sexual, religious, 
        and racial harassment and sexual, religious, and racial violence 
        policy that conforms with sections 363.01 to 363.15.  The policy 
        shall apply to pupils, teachers, administrators, and other 
        school personnel, include reporting procedures, and set forth 
        disciplinary actions that will be taken for violation of the 
        policy.  Disciplinary actions must conform with collective 
        bargaining agreements and sections 127.27 to 127.39.  The policy 
        must be conspicuously posted throughout each school building, 
        given to each district employee and independent contractor at 
        the time of entering into the person's employment contract, and 
        included in each school's student handbook on school policies.  
        Each school must develop a process for discussing the school's 
        sexual, religious, and racial harassment and violence policy 
        with students and school employees. 
           Sec. 26.  Minnesota Statutes 1992, section 136A.125, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
        post-secondary institution or, a Minnesota private, 
        baccalaureate degree granting college or university located in 
        Minnesota, or a Minnesota nonprofit two-year vocational 
        technical school granting associate degrees is eligible to 
        receive child care funds from the board and disburse them to 
        eligible students. 
           Sec. 27.  Minnesota Statutes 1992, section 179A.07, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TIME OFF.] A public employer must afford 
        reasonable time off to elected officers or appointed 
        representatives of the exclusive representative to conduct the 
        duties of the exclusive representative and must, upon request, 
        provide for leaves of absence to elected or appointed officials 
        of the exclusive representative or to a full-time appointed 
        official of an exclusive representative of teachers in another 
        Minnesota school district.  
           Sec. 28.  Minnesota Statutes 1993 Supplement, section 
        275.48, is amended to read: 
           275.48 [ADDITIONAL TAX LEVIES IN CERTAIN TAXING DISTRICTS.] 
           When by virtue of chapter 278, sections 270.07, 375.192, or 
        otherwise, the net tax capacity of a city, or township or school 
        district for a taxable year is reduced after the taxes for the 
        year have been spread by the county auditor, and when the local 
        tax rate determined by the county auditor based on the original 
        net tax capacity is applied on the reduced net tax capacity and 
        does not produce the full amount of taxes actually levied and 
        certified for that taxable year on the original net tax 
        capacity, the city, or township or school district may include 
        an additional amount in its tax levy made following final 
        determination and notice of the reduction in net tax capacity.  
        The amount shall equal the difference between the total amount 
        of taxes actually levied and certified for that taxable year 
        upon the original net tax capacity, not exceeding the maximum 
        amount which could be raised on the net tax capacity as reduced, 
        within existing local tax rate limitations, if any, and the 
        amount of taxes collected for that taxable year on the reduced 
        net tax capacity.  The total tax levy authorized for a school 
        district by this section may also include an amount equal to any 
        interest paid on the abatement refunds.  The levy for a school 
        district shall be reduced by the total amount of any abatement 
        adjustments received by the district pursuant to section 
        124.214, subdivision 2, in the same calendar year in which the 
        levy is certified.  As part of the certification required by 
        section 124.918, subdivision 1, the commissioner of education 
        shall certify the amount of the abatement levy limitation 
        adjustment for each school district headquartered in that county.
           Except for school districts, The amount of taxes so 
        included shall be levied separately and shall be levied in 
        addition to all limitations imposed by law; and further shall 
        not result in any penalty in the nature of a reduction in state 
        aid of any kind. 
           Sec. 29.  Laws 1993, chapter 224, article 8, section 20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FELLOWSHIP GRANTS.] (a) For fellowship grants to 
        highly qualified minorities seeking alternative preparation for 
        licensure: 
             $100,000     .....     1994
             $100,000 $150,000     .....     1995
           (b) A grant must not exceed $5,000 with one-half paid each 
        year for two years.  Grants must be awarded on a competitive 
        basis by the board.  Grant recipients must agree to remain as 
        teachers in the district for two years if they satisfactorily 
        complete the alternative preparation program and if their 
        contracts as probationary teachers are renewed. 
           Sec. 30.  Laws 1993, chapter 224, article 8, section 22, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SCHOOL BREAKFAST.] To operate the school 
        breakfast program: 
             $200,000     .....     1994
             $200,000 $400,000     .....     1995
           $200,000 in 1995 is for reimbursements under section 
        124.6469, subdivision 3, paragraph (b).  If the appropriation 
        amount attributable to either year is insufficient, the rate of 
        payment for each student breakfast 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.  Any unexpected balance remaining shall be used to 
        subsidize the payments made for school lunch aid per Minnesota 
        Statutes, section 124.646.  
           Sec. 31.  Laws 1993, chapter 224, article 8, section 22, 
        subdivision 12, is amended to read: 
           Subd. 12.  [TEACHERS OF COLOR PROGRAM.] For grants to 
        school districts for the teachers of color program: 
             $300,000     .....     1994
             $300,000 $500,000  .....     1995
           Of this appropriation, at least $75,000 each fiscal year 
        shall be for educating people of color to be early childhood and 
        parent educators. 
           Sec. 32.  Laws 1993, chapter 224, article 12, section 39, 
        is amended to read:  
           Sec. 39.  [REPEALER.] 
           (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 
        and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 
        3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 
        3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 
        3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 
        3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 
        3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 
        3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 
        3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 
        3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 
        3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 
        3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 
        3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 
        5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 
        3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 
        3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 
        3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 
        3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 
        3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 
        3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 
        3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 
        3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 
        3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 
        3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 
        3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 
        3545.3024; 8700.4200; 8700.6410; 8700.6800; and 8700.7100; 
        8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 
           (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 
        3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 
        3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 
        3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 
        3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 
        3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 
        3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 
        3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 
        3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 
        3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 
        3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 
        3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 
        3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 
        3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 
        3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 
        3520.5710; 3520.5900; 3520.5910; and 3520.5920; 3530.6500; 
        3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 
        3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 
        3530.7600; 3530.7700; and 3530.7800, are repealed. 
           (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0100; 
        3510.0200; 3510.0300; 3510.0400; 3510.0500; 3510.0600; 
        3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 
        3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 
        3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 
        3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 
        3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8100; 
        3510.8200; 3510.8300; 3510.8400; 3510.8500; 3510.8600; 
        3510.8700; 3510.9000; 3510.9100; chapters 3515, 3517.0100; 
        3517.0120; 3517.3150; 3517.3170; 3517.3420; 3517.3450; 
        3517.3500; 3517.3650; 3517.4000; 3517.4100; 3517.4200; 
        3517.8500; 3517.8600;, and 3530.6500; 3530.6600; 3530.6700; 
        3530.6800; 3530.6900; 3530.7000; 3530.7100; 3530.7200; 
        3530.7300; 3530.7400; 3530.7500; 3530.7600; 3530.7700; 
        3530.7800; and chapter 3560, are repealed. 
           (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 
        3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 
        3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 
        3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 
        3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 
        3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 
        3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 
        3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 
        3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 
        8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 
        8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 
        8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 
        8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 
        8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 
        8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 
        8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 
        8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 
        8700.6310; 8700.6410; 8700.6900; 8700.7010; 8700.7700; 
        8700.7710; 8700.8000; 8700.8010; 8700.8020; 8700.8030; 
        8700.8040; 8700.8050; 8700.8060; 8700.8070; 8700.8080; 
        8700.8090; 8700.8110; 8700.8120; 8700.8130; 8700.8140; 
        8700.8150; 8700.8160; 8700.8170; 8700.8180; 
        8700.8190; 8700.9000; 8700.9010; 8700.9020; 8700.9030; 
        8750.0200; 8750.0220; 8750.0240; 8750.0260; 8750.0300; 
        8750.0320; 8750.0330; 8750.0350; 8750.0370; 8750.0390; 
        8750.0410; 8750.0430; 8750.0460; 8750.0500; 8750.0520; 
        8750.0600; 8750.0620; 8750.0700; 8750.0720; 8750.0740; 
        8750.0760; 8750.0780; 8750.0800; 8750.0820; 8750.0840; 
        8750.0860; 8750.0880; 8750.0890; 8750.0900; 8750.0920; 
        8750.1000; 8750.1100; 8750.1120; 8750.1200; 8750.1220; 
        8750.1240; 8750.1260; 8750.1280; 8750.1300; 8750.1320; 
        8750.1340; 8750.1360; 8750.1380; 8750.1400; 8750.1420; 
        8750.1440; 8750.1500; 8750.1520; 8750.1540; 8750.1560; 
        8750.1580; 8750.1600; 8750.1700; 8750.1800; 8750.1820; 
        8750.1840; 8750.1860; 8750.1880; 8750.1900; 8750.1920; 
        8750.1930; 8750.1940; 8750.1960; 8750.1980; 8750.2000; 
        8750.2020; 8750.2040; 8750.2060; 8750.2080; 8750.2100; 
        8750.2120; 8750.2140; 8750.4000; 8750.4100; 8750.4200; 
        8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 
        8750.9500; 8750.9600; and 8750.9700, are repealed. 
           Sec. 33.  [REVIVAL OF RULES.] 
           Notwithstanding Minnesota Statutes, section 645.36, 
        Minnesota Rules, parts 8700.6410, 8700.9000, 8700.9010, 
        8700.9020, and 8700.9030, repealed in Laws 1993, chapter 224, 
        article 12, section 39, paragraph (a), are revived on the 
        effective date of section 32. 
           Sec. 34.  [STAFFING.] 
           The commissioner of education shall provide staffing to 
        develop the proposed amended rules on school 
        desegregation/integration and educational diversity, to be 
        adopted by the state board of education, as directed by the 
        legislature. 
           Sec. 35.  [GRANTS TO PROVIDE FREE BREAKFASTS TO ELEMENTARY 
        SCHOOL CHILDREN.] 
           Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
        year 1995 is established to explore the policy of providing 
        nutritious breakfasts to all children in elementary school, 
        without regard to whether the children are eligible to receive 
        free or reduced price breakfasts, so that they can learn 
        effectively. 
           Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be 
        an elementary school that participates in the federal school 
        breakfast and lunch programs.  For a school to receive a grant, 
        at least 15 percent of the school's enrolled children must have 
        qualified to receive a free or reduced price lunch during the 
        1993-1994 school year. 
           Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
        receive reimbursement for providing breakfasts to all children, 
        whether or not the children are from low-income families and 
        eligible to receive free or reduced price meals, an elementary 
        school must submit an application to the education commissioner 
        in the form and manner prescribed by the commissioner.  The 
        application must describe how the applicant will encourage all 
        children in the school to participate in the breakfast program.  
        The commissioner may require additional information from the 
        applicant. 
           Subd. 4.  [GRANT AWARDS.] The commissioner shall award four 
        grants:  for each of two grant recipients, between 15 and 40 
        percent of the enrolled children must have qualified to receive 
        a free or reduced price lunch during the 1993-1994 school year; 
        for each of the remaining two grant recipients, more than 40 
        percent of the enrolled children must have qualified to receive 
        a free or reduced price lunch during the 1993-1994 school year.  
        The four schools that the commissioner selects must have an 
        elementary school population that in total does not exceed 2,400 
        pupils in average daily membership.  Grant recipients must be 
        located throughout the state.  The amount of the grant shall 
        equal the statewide average cost for the 1993-1994 school year 
        for every breakfast the recipient serves under this program 
        during the 1994-1995 school year minus any state and federal 
        reimbursement the recipient receives for providing free and 
        reduced price breakfasts during the 1994-1995 school year.  
        Grant recipients must use the proceeds to provide breakfasts to 
        school children. 
           Subd. 5.  [EVALUATION.] The commissioner shall evaluate the 
        four grant sites and two control sites to determine the impact 
        that the universal breakfast program has on children's school 
        performance, including discipline in the school, students' test 
        scores, attendance rates, and other measures of educational 
        achievement.  The commissioner shall report the results of the 
        evaluation to the education committees of the legislature by 
        January 31, 1996. 
           Sec. 36.  [REPORT ON SCHOOL MEALS PROGRAMS.] 
           The commissioner of education shall review the nutrition 
        needs of K-12 students and the extent to which poor nutrition 
        interferes with effective learning, and shall review the current 
        school breakfast and lunch programs and the role of these 
        programs in improving educational achievement and contributing 
        to the long-term health of Minnesota children.  The commissioner 
        shall identify barriers to participating in the school meals 
        programs and shall make recommendations to the education 
        committees of the legislature and the legislative commission on 
        children, youth, and their families by January 31, 1995, to: 
           (1) improve student nutrition to increase the educational 
        achievement of all children and to improve the overall learning 
        climate; 
           (2) more effectively integrate the school meals program 
        into the school day; 
           (3) eliminate barriers to universal participation in school 
        meals programs; 
           (4) reduce paperwork and other administrative burdens 
        associated with the school meals programs so that resources can 
        be redirected to pay for program expansion and improving the 
        nutritional integrity of the program; and 
           (5) enable Minnesota to maximize federal funds for school 
        meals programs. 
           Sec. 37.  [REVENUE ADJUSTMENTS.] 
           After appropriate study and such public hearings as may be 
        necessary, the commissioner of education shall recommend to the 
        legislature by February 1, 1995, a policy for ensuring the 
        school districts participating in a metropolitan-wide school 
        desegregation/integration plan are not financially disadvantaged 
        as a result of participating in the plan. 
           Sec. 38.  [MAGNET SCHOOL AND PROGRAM GRANTS.] 
           (a) The commissioner of education, in consultation with the 
        desegregation/integration office under Minnesota Statutes, 
        section 121.025, shall award grants to school districts and 
        chartered public schools for planning and developing magnet 
        schools and magnet programs. 
           (b) Grant recipients must use the grant money under 
        paragraph (a) to establish or operate a magnet school or a 
        magnet program and provide all students with equal educational 
        opportunities.  Grant recipients may expend grant money on: 
           (1) teachers who provide instruction or services to 
        students in a magnet school or magnet program; 
           (2) educational paraprofessionals who assist teachers in 
        providing instruction or services to students in a magnet school 
        or magnet program; 
           (3) clerical support needed to operate a magnet school or 
        magnet program; 
           (4) equipment, equipment maintenance contracts, materials, 
        supplies, and other property needed to operate a magnet school 
        or magnet program; 
           (5) minor remodeling needed to operate a magnet school or 
        magnet program; 
           (6) transportation for field trips that are part of a 
        magnet school or magnet program curriculum; 
           (7) program planning and staff and curriculum development 
        for a magnet school or magnet program; 
           (8) disseminating information on magnet schools and magnet 
        programs; and 
           (9) indirect costs calculated according to the state's 
        statutory formula governing indirect costs. 
           Sec. 39.  [LAKE SUPERIOR DEBT.] 
           Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1994, 
        independent school district No. 381, Lake Superior, shall 
        establish a reserved account in the general fund.  The balance 
        in the account shall equal the unreserved undesignated fund 
        balance in the operating funds of the district as of June 30, 
        1994. 
           Subd. 2.  [LEVY.] For taxes payable in each of the years 
        1998 through 2000, the district may levy an amount up to 33-1/3 
        percent of the balance in the account on July 1, 1994.  The 
        balance in the account shall be adjusted each year by the amount 
        of the proceeds of the levy.  The proceeds of the levy shall be 
        used only for cash flow requirements and shall not be used to 
        supplement district revenues or income for the purposes of 
        increasing the district's expenditures or budgets. 
           Sec. 40.  [PILOT PROGRAM IN CONTINUING MULTICULTURAL 
        EDUCATION.] 
           Subdivision 1.  [PROGRAM COMPONENTS.] Beginning with the 
        1994-1995 school year, independent school district No. 38, Red 
        Lake, shall provide a 25-hour continuing education in-service 
        program in multicultural education for licensed teachers in the 
        district.  The three-year pilot program shall be 
        results-oriented and shall be designed to improve teachers' 
        ability to effectively educate learners of all racial, cultural, 
        and economic groups.  The district's staff development committee 
        under Minnesota Statutes, section 126.70, subdivision 1, shall 
        develop appropriate outcomes for the program.  The district 
        shall contract with Bemidji State University to provide 
        curriculum, instruction, and assessments for the program. 
           Subd. 2.  [PROGRAM APPROVAL.] Prior to implementation, the 
        program established in subdivision 1 must be approved by the 
        department of education in consultation with the state American 
        Indian education advisory committee. 
           Subd. 3.  [APPLICABILITY.] A teacher employed by 
        independent school district No. 38, Red Lake, at the start of 
        the 1994-1995 school year shall complete the program established 
        in subdivision 1 within three years of its implementation.  In 
        appropriate circumstances, the district's staff development 
        committee under Minnesota Statutes, section 126.70, subdivision 
        1, may waive this provision for a teacher who is unable to 
        complete the program.  The program shall be counted as 
        continuing education for licensure purposes under board of 
        teaching rules. 
           Subd. 4.  [REPORT.] Independent school district No. 38, Red 
        Lake, and the staff development committee shall report to the 
        commissioner of education on the status of the program by 
        February 1, 1995. 
           Sec. 41.  [OSSEO LEVY.] 
           For 1994 taxes payable in 1995 
        only, independent school district No. 279, Osseo, may levy a tax 
        in an amount not to exceed $500,000.  The proceeds of this levy 
        must be used to provide instructional services for at-risk 
        children. 
           Sec. 42.  [FUND TRANSFERS.] 
           Subdivision 1.  [STAPLES-MOTLEY.] Notwithstanding Minnesota 
        Statutes, section 121.912 or 121.9121 or any other law to the 
        contrary, before July 1, 1996, independent school district No. 
        2170, Motley-Staples, may recognize as revenue in the capital 
        expenditure fund up to $800,000 of referendum revenue received 
        pursuant to Minnesota Statutes, section 124A.03. 
           Subd. 2.  [MONTICELLO.] Notwithstanding Minnesota Statutes, 
        sections 121.912 and 121.9121, or any other law, independent 
        school district No. 882, Monticello, may permanently transfer an 
        amount not to exceed $250,000 from its capital expenditure fund 
        to its transportation fund before July 1, 1994. 
           Subd. 3.  [RED LAKE.] Notwithstanding any law to the 
        contrary, on June 30, 1994, independent school district No. 38, 
        Red Lake, may permanently transfer up to $160,900 from the 
        general fund to the capital expenditure fund. 
           Subd. 4.  [REMER-LONGVILLE AND ORTONVILLE.] Notwithstanding 
        Minnesota Statutes, section 121.912, subdivision 1, or any other 
        law to the contrary, independent school district Nos. 62, 
        Ortonville, and 118, Remer-Longville may each permanently 
        transfer up to $150,000 in fiscal year 1994 from the bus 
        purchase account to the capital expenditure fund for facility 
        repairs and technology-related equipment without making a levy 
        reduction. 
           Subd. 5.  [HOLDINGFORD.] Notwithstanding Minnesota 
        Statutes, sections 121.912; 121.9121; and 475.61, subdivision 4, 
        or any other law to the contrary, on June 30, 1994, independent 
        school district No. 738, Holdingford, may permanently transfer 
        up to $100,000 from its debt redemption fund to its general fund.
           Subd. 6.  [INVER GROVE.] Notwithstanding Minnesota 
        Statutes, section 121.912, independent school district No. 199, 
        Inver Grove may transfer $91,255 from the community service fund 
        to the general fund in fiscal year 1994. 
           Subd. 7.  [RECOMMENDATIONS.] After reviewing the position 
        statement on fund integrity and fund merger by the advisory 
        council on uniform financial accounting and reporting standards 
        from November 1984, the commissioner of education shall make any 
        recommendations for consolidation of funds or accounts and 
        elimination of funds or accounts to the legislature in 1995. 
           Sec. 43.  [LOW-INCOME CONCENTRATION GRANT PROGRAM.] 
           Subdivision 1.  [GRANT PROGRAM.] A low-income concentration 
        grant program is established.  The purpose of the program is to 
        provide additional resources to school buildings in which the 
        concentration of children from low-income families is high 
        compared to the district-wide concentration. 
           Subd. 2.  [APPLICATION PROCESS.] The commissioner of 
        education shall develop a grant application process.  In order 
        to qualify for a grant, the building must be located in a 
        district that meets the following criteria: 
           (1) ten percent or more of the district's pupils are 
        eligible for free and reduced lunch as of October 1 of the 
        previous fiscal year; 
           (2) ten percent or more of the district's pupils are 
        students of color; 
           (3) the district has at least 1500 students in average 
        daily membership; and 
           (4) the district's administrative office is located in the 
        seven county metropolitan area but not in a city of the first 
        class. 
           Subd. 3.  [GRANT USE.] The grant must be used according to 
        Minnesota Statutes, section 124A.28.  The grant may only be used 
        in buildings in the district where the percent of children in 
        the building eligible for free and reduced lunch is at least 20 
        percent and the number of minority students is at least 20 
        percent. 
           Sec. 44. [SEXUALITY AND FAMILY LIFE EDUCATION SURVEY.] 
           The department of education, in consultation with the 
        department of health and Minnesota planning, shall conduct a 
        survey to assess the extent and status of sexuality and family 
        life education in Minnesota's public elementary, middle, 
        secondary, and alternative schools.  The survey shall, at a 
        minimum, compile information on the sexuality and family life 
        related curriculum offered in each school, the goals of the 
        curriculum, the age and developmental appropriateness of the 
        curriculum, available research supporting the curriculum, the 
        relevant training of those who teach sexuality and family life 
        education, and the role that parents play in the programs.  The 
        department of education shall report the results of the 
        evaluation to the legislature by February 15, 1995.  The survey 
        results shall be used to develop effective programs to prevent 
        teen pregnancy. 
           Sec. 45.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education in the fiscal year designated. 
           Subd. 2.  [FREE BREAKFAST GRANTS.] For grants for free 
        breakfasts to elementary school children: 
              $167,000      .......      1995 
           Up to $18,000 of this sum may be used to conduct an 
        evaluation of the grant sites. 
           Subd. 3.  [MAGNET SCHOOL AND PROGRAM GRANTS.] For magnet 
        school and program grants: 
            $1,500,000      .......      1995 
           This sum shall be used for planning and developing magnet 
        schools and magnet programs.  Prior to awarding the grants, the 
        commissioner shall consult with the superintendent of districts 
        that demonstrate an intent to participate in the magnet school 
        and related programs. 
           Subd. 4.  [DESEGREGATION/INTEGRATION OFFICE.] For the 
        desegregation/integration office: 
              $150,000      .......      1995 
           This sum shall be used for costs associated with assisting 
        school districts in voluntary integration efforts and for 
        annually evaluating and reporting the results of such efforts.  
        A portion of this appropriation may be used for unclassified 
        positions within the department. 
           Subd. 5.  [MALE RESPONSIBILITY AND FATHERING GRANTS.] For 
        male responsibility and fathering grants: 
              $500,000      .......      1995 
           The commissioner of education shall award a minimum of ten 
        grants geographically distributed throughout the state.  
           The commissioner of education may enter into cooperative 
        agreements with the commissioner of human services to access 
        federal money for child support and paternity education programs.
           This appropriation is available until June 30, 1996. 
           Subd. 6.  [MULTICULTURAL CONTINUING EDUCATION GRANT.] For a 
        grant to independent school district No. 38, Red Lake, for a 
        multicultural continuing education pilot project for teachers: 
              $69,000       .......      1995 
           The district must match this sum with staff development 
        revenue under Minnesota Statutes, section 124A.29. 
           Subd. 7.  [LOW-INCOME CONCENTRATION GRANTS.] For grants 
        under section 43: 
              $1,000,000    .......      1995 
           Each grant shall be no more than $50,000. 
           Subd. 8.  [NETT LAKE YOUTH PROGRAM GRANT.] For a grant to 
        independent school district No. 707, Nett Lake, for providing an 
        evening and weekend youth activity program: 
               $25,000      .......      1995
           The school district, in collaboration with social services 
        and law enforcement agencies, and with the advice of the 
        community youth council, must use the grant to provide evening 
        and weekend programs for youth that include educational, social, 
        and cultural activities. 
           Subd. 9.  [CULTURAL EXCHANGE PROGRAM.] For the cultural 
        exchange program: 
              $142,000      .......      1995 
           Subd. 10.  [SITE GRANTS.] For grants to school districts 
        for mentorship cooperative ventures between school districts and 
        post-secondary preparation institutions for alternative 
        licensure programs under Minnesota Statutes, section 125.88: 
               $100,000     .....     1995 
           The department must transmit this appropriation to the 
        board of teaching. 
           Subd. 11.  [SEXUALITY AND FAMILY LIFE EDUCATION 
        SURVEY.] For a sexuality and family life education survey: 
               $25,000      .....     1995 
           Sec. 46.  [REPEALER.] 
           (a) Laws 1993, chapter 224, article 8, section 14, is 
        repealed. 
           (b) Minnesota Rules, parts 8700.6410; 8700.9000; 8700.9010; 
        8700.9020; and 8700.9030, are repealed. 
           Sec. 47.  [EFFECTIVE DATE.] 
           (a) Sections 32; 33; and 42 are effective the day following 
        final enactment. 
           (b) Sections 14; 17; and 46, paragraph (a), are effective 
        July 1, 1994. 
           (c) Sections 12; and 13; are effective July 1, 1994, and 
        apply to revenue for 1994-1995 and later school years. 
                                   ARTICLE 9 
                                 MISCELLANEOUS 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        120.064, subdivision 3, is amended to read: 
           Subd. 3.  [SPONSOR.] A school board may sponsor one or more 
        outcome-based schools. 
           A school board may authorize a maximum of five 
        outcome-based schools. 
           No more than a total of 20 35 outcome-based schools may be 
        authorized.  The state board of education shall advise potential 
        sponsors when the maximum number of outcome-based schools has 
        been authorized. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        120.064, subdivision 16, is amended to read: 
           Subd. 16.  [LEASED SPACE.] The school may lease space from 
        a board eligible to be a sponsor or other public or private 
        nonprofit nonsectarian organization.  If a school is unable to 
        lease appropriate space from an eligible board or other public 
        or private nonprofit nonsectarian organization, the school may 
        lease space from another nonsectarian organization if the 
        department of education, in consultation with the department of 
        administration, approves the lease.  If the school is unable to 
        lease appropriate space from public or private nonsectarian 
        organizations, the school may lease space from a sectarian 
        organization if the leased space is constructed as a school 
        facility and the department of education, in consultation with 
        the department of administration, approves the lease. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        120.101, subdivision 5b, is amended to read: 
           Subd. 5b.  [INSTRUCTIONAL DAYS.] Every child required to 
        receive instruction according to subdivision 5 shall receive 
        instruction for at least 170 days through the 1994-1995 
        1995-1996 school year, and for later years, at least the number 
        of days per school year in the following schedule: 
           (1) 1995-1996, 172; 
           (2) 1996-1997, 174; 
           (3) (2) 1997-1998, 176; 
           (4) (3) 1998-1999, 178; 
           (5) (4) 1999-2000, 180; 
           (6) (5) 2000-2001, 182; 
           (7) (6) 2001-2002, 184; 
           (8) (7) 2002-2003, 186; 
           (9) (8) 2003-2004, 188; and 
           (10) (9) 2004-2005, and later school years, 190. 
           Sec. 4.  Minnesota Statutes 1992, section 123.3514, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
        any other law to the contrary, an 11th or 12th grade 
        pupil enrolled in a public school or an American 
        Indian-controlled tribal contract or grant school eligible for 
        aid under section 124.86, except a foreign exchange pupil 
        enrolled in a district under a cultural exchange program, may 
        apply to an eligible institution, as defined in subdivision 3, 
        to enroll in nonsectarian courses offered by that post-secondary 
        institution.  If an institution accepts a secondary pupil for 
        enrollment under this section, the institution shall send 
        written notice to the pupil, the pupil's school district, and 
        the commissioner of education within ten days of acceptance.  
        The notice shall indicate the course and hours of enrollment of 
        that pupil.  If the pupil enrolls in a course for post-secondary 
        credit, the institution shall notify the pupil about payment in 
        the customary manner used by the institution. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        123.3514, subdivision 6, is amended to read: 
           Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
        a course under this section, the department of education shall 
        make payments according to this subdivision for courses that 
        were taken for secondary credit.  
           The department shall not make payments to a school district 
        or post-secondary institution for a course taken for 
        post-secondary credit only.  The department shall not make 
        payments to a post-secondary institution for a course from which 
        a student officially withdraws during the first 14 days of the 
        quarter or semester. 
           A post-secondary institution shall receive the following: 
           (1) for an institution granting quarter credit, the 
        reimbursement per credit hour shall be an amount equal to 88 
        percent of the product of the formula allowance, multiplied by 
        1.3, and divided by 45; or 
           (2) for an institution granting semester credit, the 
        reimbursement per credit hour shall be an amount equal to 88 
        percent of the product of the general revenue formula allowance, 
        multiplied by 1.3, and divided by 30. 
           The department of education shall pay to each 
        post-secondary institution 100 percent of the amount in clause 
        (1) or (2) within 30 days of receiving initial enrollment 
        information each quarter or semester.  If changes in enrollment 
        occur during a quarter or semester, the change shall be reported 
        by the post-secondary institution at the time the enrollment 
        information for the succeeding quarter or semester is 
        submitted.  At any time the department of education notifies a 
        post-secondary institution that an overpayment has been made, 
        the institution shall promptly remit the amount due. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        123.3514, subdivision 6b, is amended to read: 
           Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
        For a pupil enrolled in a course according to this section, the 
        department of education shall make payments according to this 
        subdivision for courses taken to fulfill high school graduation 
        requirements by pupils eligible for adult high school graduation 
        aid.  
           The department must not make payments to a school district 
        or post-secondary institution for a course taken for 
        post-secondary credit only.  The department shall not make 
        payments to a post-secondary institution for a course from which 
        a student officially withdraws during the first 14 days of the 
        quarter or semester. 
           A post-secondary institution shall receive the following: 
           (1) for an institution granting quarter credit, the 
        reimbursement per credit hour shall be an amount equal to 88 
        percent of the product of the formula allowance, multiplied by 
        1.3, and divided by 45; or 
           (2) for an institution granting semester credit, the 
        reimbursement per credit hour shall be an amount equal to 88 
        percent of the product of the general revenue formula allowance 
        multiplied by 1.3, and divided by 30. 
           The department of education shall pay to each 
        post-secondary institution 100 percent of the amount in clause 
        (1) or (2) within 30 days of receiving initial enrollment 
        information each quarter or semester.  If changes in enrollment 
        occur during a quarter or semester, the change shall be reported 
        by the post-secondary institution at the time the enrollment 
        information for the succeeding quarter or semester is 
        submitted.  At any time the department of education notifies a 
        post-secondary institution that an overpayment has been made, 
        the institution shall promptly remit the amount due. 
           A school district shall receive: 
           (1) for a pupil who is not enrolled in classes at a 
        secondary program, 12 percent of the general education formula 
        allowance times .65, times 1.3; or 
           (2) for a pupil who attends classes at a secondary program 
        part time, the general education formula allowance times .65, 
        times 1.3, times the ratio of the total number of hours the 
        pupil is in membership for courses taken by the pupil for credit 
        to 1020 hours. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        124.17, subdivision 2f, is amended to read: 
           Subd. 2f.  [PSEO PUPILS.] The average daily membership for 
        a student participating in the post-secondary enrollment options 
        program equals the lesser of 
           (1) 1.00, or 
           (2) the greater of 
           (i) .12, or 
           (ii) the ratio of the number of instructional hours the 
        student is enrolled in the secondary school to the product of 
        the number of days required in section 120.101, subdivision 5b, 
        times the minimum length of day required in Minnesota Rules, 
        part 3500.1500, subpart 1. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        124.19, subdivision 1, is amended to read: 
           Subdivision 1.  [INSTRUCTIONAL TIME.] Every district shall 
        maintain school in session or provide instruction in other 
        districts for at least 175 days through the 1994-1995 1995-1996 
        school year and the number of days required in subdivision 1b 
        thereafter, not including summer school, or the equivalent in a 
        district operating a flexible school year program.  A district 
        that holds school for the required minimum number of days and is 
        otherwise qualified is entitled to state aid as provided by 
        law.  If school is not held for the required minimum number of 
        days, state aid shall be reduced by the ratio that the 
        difference between the required number of days and the number of 
        days school is held bears to the required number of days, 
        multiplied by 60 percent of the basic revenue, as defined in 
        section 124A.22, subdivision 2, of the district for that year. 
        However, districts maintaining school for fewer than the 
        required minimum number of days do not lose state aid (1) if the 
        circumstances causing loss of school days below the required 
        minimum number of days are beyond the control of the board, (2) 
        if proper evidence is submitted, and (3) if a good faith attempt 
        is made to make up time lost due to these circumstances.  The 
        loss of school days resulting from a lawful employee strike 
        shall not be considered a circumstance beyond the control of the 
        board.  Days devoted to meetings authorized or called by the 
        commissioner may not be included as part of the required minimum 
        number of days of school.  For grades 1 to 12, days devoted to 
        parent-teacher conferences, teachers' workshops, or other staff 
        development opportunities as part of the required minimum number 
        of days must not exceed five days through the 1994-1995 
        1995-1996 school year and for subsequent school years the 
        difference between the number of days required in subdivision 1b 
        and the number of instructional days required in subdivision 
        5b.  For kindergarten, days devoted to parent-teacher 
        conferences, teachers' workshops, or other staff development 
        opportunities as part of the required minimum number of days 
        must not exceed twice the number of days for grades 1 to 12. 
           Sec. 9.  Minnesota Statutes 1992, section 124.19, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [REQUIRED DAYS.] Each district shall maintain 
        school in session or provide instruction in other districts for 
        at least the number of days required for the school years listed 
        below: 
           (1) 1995-1996, 177; 
           (2) 1996-1997, 179; 
           (3) (2) 1997-1998, 181; 
           (4) (3) 1998-1999, 183; 
           (5) (4) 1999-2000, 185; 
           (6) (5) 2000-2001, 187; 
           (7) (6) 2001-2002, 189; 
           (8) (7) 2002-2003, 191; 
           (9) (8) 2003-2004, 193; and 
           (10) (9) 2004-2005, and later school years, 195. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        124.248, subdivision 4, is amended to read: 
           Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) An 
        outcome-based school is eligible to receive other aids, grants, 
        and revenue according to chapters 120 to 129, as though it were 
        a school district except that, notwithstanding section 124.195, 
        subdivision 3, the payments shall be of an equal amount on each 
        of the 23 payment dates unless an outcome-based school is in its 
        first year of operation in which case it shall receive on its 
        first payment date 15 percent of its cumulative amount 
        guaranteed for the year and 22 payments of an equal amount 
        thereafter the sum of which shall be 85 percent of the 
        cumulative amount guaranteed.  However, it may not receive aid, 
        a grant, or revenue if a levy is required to obtain the money, 
        except as otherwise provided in this section.  Federal aid 
        received by the state must be paid to the school, if it 
        qualifies for the aid as though it were a school district. 
           (b) Any revenue received from any source, other than 
        revenue that is specifically allowed for operational, 
        maintenance, capital facilities revenue under paragraph (c), and 
        capital expenditure equipment costs under this section, may be 
        used only for the planning and operational start-up costs of an 
        outcome-based school.  Any unexpended revenue from any source 
        under this paragraph must be returned to that revenue source or 
        conveyed to the sponsoring school district, at the discretion of 
        the revenue source. 
           (c) An outcome-based school may receive money from any 
        source for capital facilities needs.  Any unexpended capital 
        facilities revenue must be reserved and shall be expended only 
        for future capital facilities purposes. 
           Sec. 11.  Minnesota Statutes 1992, section 124.86, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
        tribal contract or grant school that is located on a reservation 
        within the state and that complies with the requirements in 
        subdivision 1 is eligible to receive tribal contract or grant 
        school aid.  The amount of aid is derived by: 
           (1) multiplying the formula allowance under section 
        124A.22, subdivision 2, times the difference between (a) the 
        actual pupil units as defined in section 124A.02, subdivision 
        15, in average daily membership, excluding section 124.17, 
        subdivision 2f, and (b) the number of pupils for the current 
        school year, weighted according to section 124.17, subdivision 
        1, receiving benefits under section 123.933 or 123.935 or for 
        which the school is receiving reimbursement under section 
        126.23; 
           (2) subtracting from the result in clause (1) the amount of 
        money allotted to the school by the federal government through 
        the Indian School Equalization Program of the Bureau of Indian 
        Affairs, according to Code of Federal Regulations, title 25, 
        part 39, subparts A to E, for the basic program as defined by 
        section 39.11, paragraph (b), for the base rate as applied to 
        kindergarten through twelfth grade, excluding small school 
        adjustments and additional weighting, but not money allotted 
        through subparts F to L for contingency funds, school board 
        training, student training, interim maintenance and minor 
        repair, interim administration cost, prekindergarten, and 
        operation and maintenance, and the amount of money that is 
        received according to section 126.23; 
           (3) dividing the result in clause (2) by the actual pupil 
        units in average daily membership, excluding section 124.17, 
        subdivision 2f; and 
           (4) multiplying the actual pupil units, including section 
        124.17, subdivision 2f, in average daily membership by the 
        lesser of $1,500 or the result in clause (3). 
           Sec. 12.  Minnesota Statutes 1992, section 127.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [IMMUNITY FROM CIVIL LIABILITY.] It is a defense 
        to a civil action for damages against a teacher school official, 
        as defined in section 609.2231, subdivision 5, to prove that the 
        force used by the teacher official was reasonable, was in the 
        exercise of lawful authority, and was necessary under the 
        circumstances to restrain the pupil or to prevent bodily harm or 
        death to another. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Section 2 is effective the day following final enactment.  
        Section 7 is effective retroactive to July 1, 1991, and applies 
        to fiscal year 1992 and thereafter. 
                                   ARTICLE 10
                                   LIBRARIES
           Section 1.  [134.155] [LIBRARIANS OF COLOR PROGRAM.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section, 
        "people of color" means permanent United States residents who 
        are African-American, American Indian or Alaskan native, Asian 
        or Pacific Islander, or Hispanic. 
           Subd. 2.  [GRANTS.] The commissioner of education, in 
        consultation with the multicultural advisory committee 
        established in section 126.82, shall award grants for 
        professional development programs to recruit and educate people 
        of color in the field of library science or information 
        management.  Grant applicants must be a public library 
        jurisdiction with a growing minority population working in 
        collaboration with an accredited institution of higher education 
        with a library program in the state of Minnesota. 
           Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
        shall recruit people of color to be librarians in public 
        libraries and provide support in linking program participants 
        with jobs in the recipient's library jurisdiction. 
           (b) A grant recipient shall establish an advisory council 
        composed of representatives of communities of color. 
           (c) A grant recipient, with the assistance of the advisory 
        council, shall recruit high school students, undergraduate 
        students, or other persons; support them through the higher 
        education application and admission process; advise them while 
        enrolled; and link them with support resources in the college or 
        university and the community.  
           (d) A grant recipient shall award stipends to people of 
        color enrolled in an accredited library program to help cover 
        the costs of tuition, student fees, supplies, and books.  
        Stipend awards must be based upon a student's financial need and 
        students must apply for any additional financial aid for which 
        they are eligible to supplement this program.  No more than ten 
        percent of the grant may be used for costs of administering the 
        program.  Students must agree to work in the grantee library 
        jurisdiction for at least two years after graduation if the 
        student acquires a master's degree and at least three years 
        after graduation if the student acquires both a bachelor's and a 
        master's degree while participating in the program.  If no 
        full-time position is available in the library jurisdiction, the 
        student may fulfill the work requirement in another Minnesota 
        public library.  
           (e) The commissioner of education shall consider the 
        following criteria in awarding grants:  
           (1) whether the program is likely to increase the 
        recruitment and retention of persons of color in librarianship; 
           (2) whether grant recipients will establish or have a 
        mentoring program for persons of color; and 
           (3) whether grant recipients will provide a library 
        internship for persons of color while participating in this 
        program.  
           Sec. 2.  Minnesota Statutes 1992, section 134.195, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CRITERIA.] Public library services established 
        according to this section, including materials, programs, 
        equipment, and other public library services, whether located in 
        an elementary or secondary school building or elsewhere, shall 
        be available for simultaneous use by students and residents of 
        the area.  If public library services are located in an 
        elementary or secondary school building, a separate entrance, 
        accessible from the outside of the school building, shall be 
        provided for use by the residents.  The library shall meet all 
        requirements in statutes and rules applicable to public 
        libraries and school media centers.  A media supervisor licensed 
        by the board of teaching may be the director of the library.  
        The library shall be centrally located in the community and 
        available for use by residents during all hours the school is in 
        session, at least 15 additional hours each week during evenings, 
        and on Saturdays.  The library shall continue to maintain 
        approximately the same hours of operation when the school is not 
        in session.  When school is not in session, the library may 
        reduce its hours to maintain at least the average number of 
        hours each week of other public libraries serving its population 
        size.  The library shall have telephone service that is separate 
        from the telephone service for the school.  Public parking, 
        restrooms, drinking water, and other necessities shall be easily 
        accessible to residents. 
           Sec. 3.  [CHILDREN'S LIBRARY SERVICES GRANT PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
        education shall establish a grant program for public libraries 
        to develop community collaborations and partnerships that 
        strengthen public library service to children, young people, and 
        their families.  The office of library development and services 
        shall administer the grant program. 
           Subd. 2.  [APPLICANTS.] An applicant must propose a program 
        involving collaboration between a public library and at least 
        one child or family organization, including, but not limited to: 
        a school district, an early childhood family education program, 
        a public or private adult basic education program, a nonprofit 
        agency, a licensed school age child care program, a licensed 
        family child care provider, a licensed child care center, a 
        public health clinic, a social service agency, or a family 
        literacy program.  
           Subd. 3.  [ADVISORY TASK FORCE.] The commissioner of 
        education shall appoint an advisory task force to review grant 
        applications and make recommendations for awarding the grants.  
        At least two members of the task force must be practicing 
        children's services librarians.  
           Subd. 4.  [CRITERIA FOR GRANT AWARDS.] In order to qualify 
        for a grant, an applicant must:  
           (1) demonstrate collaboration between a public or private 
        agency that improves library services to children, young people, 
        and their families; 
           (2) have a plan for replication of the project in other 
        areas of the state, if appropriate; 
           (3) involve the regional public library system and the 
        multitype library system in the planning; and 
           (4) describe a system for evaluating the project. 
           Sec. 4.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal years designated. 
           Subd.  2.  [LIBRARIANS OF COLOR.] For the librarians of 
        color program: 
              $55,000     .....     1995
           Subd. 3.  [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 
        for collaborative programs to strengthen library services to 
        children, young people, and their families: 
              $50,000     .....     1995
                                   ARTICLE 11
                                 STATE AGENCIES
           Section 1.  Minnesota Statutes 1992, section 121.612, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FOUNDATION STAFF.] (a) The state board shall 
        appoint the executive director and other staff who shall perform 
        duties and have responsibilities solely related to the 
        foundation.  
           (b) As part of the annual plan of work, the foundation, 
        under the direction of the state board, may appoint up to three 
        employees.  The employees appointed under this paragraph are not 
        state employees under chapter 43A, but are covered under section 
        3.736.  At the foundation board's discretion, the employees may 
        participate in the state health and state insurance plans for 
        employees in unclassified service.  The employees shall be 
        supervised by the executive director. 
           Sec. 2.  Minnesota Statutes 1992, section 126A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRANTS.] The director may apply for, receive, 
        and allocate grants and other money for environmental education. 
        The director shall continue to make a grant to an environmental 
        library located in the metropolitan area. 
           Sec. 3.  Minnesota Statutes 1992, section 129C.15, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [CENTER RESPONSIBILITIES.] The center shall:  
           (1) provide information and technical services to arts 
        teachers, professional arts organizations, school districts, and 
        the department of education; 
           (2) gather and conduct research in arts education; 
           (3) design and promote arts education opportunities for all 
        Minnesota pupils in elementary and secondary schools; and 
           (4) serve as liaison for the department of education to 
        national organizations for arts education. 
           Sec. 4.  [FEDERAL FUNDS APPROVAL.] 
           The expenditure of federal funds as shown in the first and 
        third change orders to the 1994-1995 supplemental budget are 
        approved and appropriated and shall be spent as indicated. 
           Sec. 5.  [FARIBAULT ACADEMIES; APPROPRIATION.] 
           Subdivision 1.  [FARIBAULT STATE ACADEMIES; STAFF 
        TRAINING.] $100,000 is appropriated in fiscal year 1995 from the 
        general fund to the department of education for the Faribault 
        academies to pay for the costs of an intensive staff training 
        program.  The staff training shall address issues of staff 
        awareness and understanding of blind and deaf cultures, staff 
        skill improvement, mediation and conflict resolution, team 
        building, and communications.  A report concerning the staff 
        training program shall be submitted to the education committees 
        of the legislature by January 1, 1995. 
           Subd. 2.  [UTILIZATION OF ACADEMY EMPLOYEES.] In order to 
        utilize employees of the Faribault academies who would otherwise 
        be laid off during June, July, and August 1994, work to be 
        performed on the renovation of Noyes hall on the Minnesota state 
        academy for the deaf campus and the demolition of Dow hall on 
        the Minnesota academy for the blind campus may include state 
        employees, provided that the work performed by state employees 
        is necessary for the completion of the projects, results in real 
        costs savings on the projects, and is in conformance with state 
        employees collective bargaining agreements. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Section 4 is effective the day following final enactment. 
                                   ARTICLE 12
                               SCHOOL BUS SAFETY
           Section 1.  Minnesota Statutes 1992, section 123.39, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The board may provide for the 
        transportation of pupils to and from school and for any other 
        purpose for which aid is authorized under section 124.223 or for 
        which levies are authorized under sections 124.226, 124.2716, 
        124.91, 124.912, 124.914, 124.916, 124.918, and 136C.411.  The 
        board may also provide for the transportation of pupils 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, except pupils whose 
        transportation privileges have been revoked under section 
        123.805, subdivision 1, clause (6), or 123.7991, paragraph (b), 
        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 child with a 
        disability not yet enrolled in kindergarten when special 
        instruction and services under section sections 120.17 and 
        120.1701 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. 2.  Minnesota Statutes 1992, section 123.78, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [RULES.] The state board of education may amend 
        rules relating to equal transportation. 
           Sec. 3.  [123.799] [STUDENT TRANSPORTATION SAFETY.] 
           Subdivision 1.  [RESERVED REVENUE USE.] A district shall 
        use the student transportation safety reserved revenue under 
        section 124.225, subdivision 7f, for providing student 
        transportation safety programs to enhance student conduct and 
        safety on the bus or when boarding and exiting the bus.  A 
        district's student transportation policy must specify the 
        student transportation safety activities to be carried out under 
        this section.  A district's student transportation safety 
        reserved revenue may only be used for the following purposes: 
           (1) to provide paid adult bus monitors, including training 
        and salary costs; 
           (2) to provide a volunteer bus monitor program, including 
        training costs and the cost of a program coordinator; 
           (3) to purchase or lease optional external public address 
        systems or video recording cameras for use on buses; and 
           (4) other activities or equipment that have been reviewed 
        by the state school bus safety advisory committee and approved 
        by the commissioner of public safety. 
           Subd. 2.  [REPORTING.] Districts shall annually report 
        expenditures from the student transportation safety reserved 
        revenue to the commissioner of education, who shall provide the 
        information to the school bus safety advisory committee. 
           Sec. 4.  [123.7991] [SCHOOL BUS SAFETY TRAINING.] 
           Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The first week of 
        school is designated as school bus safety week. 
           A school board may designate one day of school bus safety 
        week as school bus driver day. 
           Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
        shall provide public school pupils enrolled in grades 
        kindergarten through 12 with school bus safety training.  The 
        training shall be results-oriented and shall consist of both 
        classroom instruction and practical training using a school 
        bus.  Upon completing the training, a student shall be able to 
        demonstrate knowledge and understanding of at least the 
        following competencies and concepts: 
           (1) transportation by school bus is a privilege not a 
        right; 
           (2) district policies for student conduct and school bus 
        safety; 
           (3) appropriate conduct while on the bus; 
           (4) the danger zones surrounding a school bus; 
           (5) procedures for safely boarding and leaving a school 
        bus; 
           (6) procedures for safe vehicle lane crossing; and 
           (7) school bus evacuation and other emergency procedures. 
           (b) Student school bus safety training shall commence 
        during school bus safety week.  All students who are transported 
        by school bus and are enrolled during the first week of school 
        must demonstrate achievement of the school bus safety training 
        competencies by the end of the third week of school.  Students 
        who enroll in a school after the first week of school and are 
        transported by school bus shall undergo school bus safety 
        training and demonstrate achievement of the school bus safety 
        competencies within three weeks of the first day of attendance.  
        The pupil transportation safety director in each district must 
        certify to the commissioner of education annually by October 15 
        that all students transported by bus have satisfactorily 
        demonstrated knowledge and understanding of the school bus 
        safety competencies according to this section or provide an 
        explanation for a student's failure to demonstrate the 
        competencies.  A school district may deny transportation to a 
        student who fails to demonstrate the competencies, unless the 
        student is unable to achieve the competencies due to a 
        disability. 
           (c) A district must, to the extent possible, provide 
        kindergarten pupils with bus safety training before the first 
        day of school. 
           (d) A school district must also provide student safety 
        education for bicycling and pedestrian safety. 
           Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner of 
        education shall develop a comprehensive model school bus safety 
        training program for pupils who ride the bus that includes bus 
        safety curriculum for both classroom and practical instruction, 
        methods for assessing attainment of school bus safety 
        competencies, and age-appropriate instructional materials. 
           Sec. 5.  [123.7992] [NOTICE OF RECORDING DEVICE.] 
           If a video or audio recording device is placed on a school 
        bus, the bus also must contain a sign or signs, conspicuously 
        placed, notifying riders that their conversations or actions may 
        be recorded on tape.  
           Sec. 6.  [123.801] [BUS TRANSPORTATION A PRIVILEGE NOT A 
        RIGHT.] 
           Transportation by school bus is a privilege not a right for 
        an eligible student.  A student's eligibility to ride a school 
        bus may be revoked for a violation of school bus safety or 
        conduct policies, or for violation of any other law governing 
        student conduct on a school bus, pursuant to a written school 
        district discipline policy.  Revocation of a student's bus 
        riding privilege is not an exclusion, expulsion, or suspension 
        under the pupil fair dismissal act of 1974.  Revocation 
        procedures for a student who is an individual with a disability 
        under the Individuals with Disabilities Education Act, United 
        States Code, title 20, section 1400 et seq., section 504 of the 
        Rehabilitation Act of 1973, United States Code, title 29, 
        section 794, and the Americans with Disabilities Act, Public Law 
        Number 101-336, are governed by these provisions. 
           Sec. 7.  Minnesota Statutes 1992, section 124.223, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [RULES.] The state board of education may amend 
        rules relating to transportation aid and data. 
           Sec. 8.  Minnesota Statutes 1992, section 124.225, is 
        amended by adding a subdivision to read: 
           Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
        district shall reserve an amount equal to the greater of $1,000 
        or one percent of the sum of the district's regular 
        transportation revenue according to subdivision 7d, paragraph 
        (a), and nonregular transportation revenue according to 
        subdivision 7d, paragraph (b), for that school year to provide 
        student transportation safety programs under section 3. 
           Sec. 9.  Minnesota Statutes 1992, section 124.225, is 
        amended by adding a subdivision to read: 
           Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
        transportation safety aid equals the district's reserved revenue 
        for transportation safety under subdivision 7f for that school 
        year. 
           Sec. 10.  Minnesota Statutes 1992, section 126.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [IDENTIFY, OPERATION.] Identification and 
        operation of school safety patrols shall be uniform throughout 
        the state and the method of identification and signals to be 
        used shall be as prescribed by the commissioner of public 
        safety.  School safety patrol members may wear fluorescent 
        reflective vests. 
           Sec. 11.  Minnesota Statutes 1992, section 169.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
        used to transport pupils to or from a school defined in section 
        120.101, or to or from school-related activities, by the school 
        or a school district, or by someone under an agreement with the 
        school or a school district.  A school bus does not include a 
        motor vehicle transporting children to or from school for which 
        parents or guardians receive direct compensation from a school 
        district, a motor coach operating under charter carrier 
        authority, or a transit bus providing services as defined in 
        section 174.22, subdivision 7.  A school bus may be type I A, 
        type B, type C, or type D, type II, or type III as follows:  
           (a) A "type I school bus" means a school bus of more than 
        10,000 pounds gross vehicle weight rating, designed for carrying 
        more than ten persons. 
           (b) A "type II school bus" is a bus with a gross vehicle 
        weight rating of 10,000 pounds or less, designed for carrying 
        more than ten persons.  It must be outwardly equipped and 
        identified as a school bus. 
           (1) a "type A school bus" is a conversion or body 
        constructed upon a van-type compact truck or a front-section 
        vehicle, with a gross vehicle weight rating of 10,000 pounds or 
        less, designed for carrying more than ten persons; 
           (2) a "type B school bus" is a conversion or body 
        constructed and installed upon a van or front-section vehicle 
        chassis, or stripped chassis, with a gross vehicle weight rating 
        of more than 10,000 pounds, designed for carrying more than ten 
        persons.  Part of the engine is beneath or behind the windshield 
        and beside the driver's seat.  The entrance door is behind the 
        front wheels; 
           (3) a "type C school bus" is a body installed upon a flat 
        back cowl chassis with a gross vehicle weight rating of more 
        than 10,000 pounds, designated for carrying more than ten 
        persons.  All of the engine is in front of the windshield and 
        the entrance door is behind the front wheels; 
           (4) a "type D school bus" is a body installed upon a 
        chassis, with the engine mounted in the front, midship or rear, 
        with a gross vehicle weight rating of more than 10,000 pounds, 
        designed for carrying more than ten persons.  The engine may be 
        behind the windshield and beside the driver's seat; it may be at 
        the rear of the bus, behind the rear wheels, or midship between 
        the front and rear axles.  The entrance door is ahead of the 
        front wheels; and 
           (c) (5) type III school buses are restricted to passenger 
        cars, station wagons, vans, and buses having a maximum 
        manufacturer's rated seating capacity of ten people, including 
        the driver, and a gross vehicle weight rating of 10,000 pounds 
        or less.  In this subdivision, "gross vehicle weight rating" 
        means the value specified by the manufacturer as the loaded 
        weight of a single vehicle.  A "type III school bus" must not be 
        outwardly equipped and identified as a school bus. 
           Sec. 12.  Minnesota Statutes 1992, section 169.21, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RIGHTS IN ABSENCE OF SIGNALS.] (a) Where 
        traffic-control signals are not in place or in operation the 
        driver of a vehicle shall yield the right-of-way, slowing down 
        or stopping if need be to so yield, to a pedestrian crossing the 
        roadway within a crosswalk but no pedestrian shall suddenly 
        leave a curb or other place of safety and walk or run into the 
        path of a vehicle which is so close that it is impossible for 
        the driver to yield.  This provision shall not apply under the 
        conditions as otherwise provided in this subdivision. 
           (b) When any vehicle is stopped at a marked crosswalk or at 
        any unmarked crosswalk at an intersection to permit a pedestrian 
        to cross the roadway, the driver of any other vehicle 
        approaching from the rear shall not overtake and pass the 
        stopped vehicle. 
           (c) It is unlawful for any person to drive a motor vehicle 
        through a column of school children crossing a street or highway 
        or past a member of a school safety patrol, while the member of 
        the school safety patrol is directing the movement of children 
        across a street or highway and while the school safety patrol 
        member is holding an official signal in the stop position.  A 
        person who violates this paragraph is guilty of a misdemeanor.  
        A person who violates this paragraph a second or subsequent time 
        within one year of a previous conviction under this paragraph is 
        guilty of a gross misdemeanor. 
           Sec. 13.  [169.435] [STATE SCHOOL BUS SAFETY 
        ADMINISTRATION.] 
           Subdivision 1.  [RESPONSIBILITY; DEPARTMENT OF PUBLIC 
        SAFETY.] The department of public safety has the primary 
        responsibility for school transportation safety.  To oversee 
        school transportation safety, the commissioner of public safety 
        shall establish a school bus safety advisory committee according 
        to subdivision 2.  The commissioner or the commissioner's 
        designee shall serve as state director of pupil transportation 
        according to subdivision 3. 
           Subd. 2.  [SCHOOL BUS SAFETY ADVISORY COMMITTEE.] The 
        commissioner of public safety shall establish the school bus 
        safety advisory committee.  The commissioner shall provide the 
        committee with meeting space and clerical support.  The 
        commissioner of public safety or the commissioner's designee 
        shall chair the committee.  The members of the committee also 
        shall include: 
           (1) the commissioner of education or the commissioner's 
        designee; 
           (2) the commissioner of human rights or the commissioner's 
        designee; 
           (3) a county or city attorney; 
           (4) a representative of the state patrol; 
           (5) a school board member; 
           (6) a school superintendent; 
           (7) two school bus drivers, one representing the 
        metropolitan area and one representing greater Minnesota; 
           (8) two school transportation contractors, one representing 
        the metropolitan areas and one representing greater Minnesota; 
           (9) two school transportation safety directors, one 
        representing the metropolitan area and one representing greater 
        Minnesota; and 
           (10) five public members, including at least four parents 
        of children who ride a school bus, among them a parent of a 
        child with a disability.  The public members shall be 
        geographically representative. 
           The commissioner of public safety, in consultation with the 
        commissioner of education, shall appoint the members listed in 
        clauses (3) to (9).  The governor shall appoint the public 
        members in clause (10).  Terms, compensation, and removal of 
        committee members shall be according to section 15.059.  The 
        committee shall meet quarterly or as required by the chair. 
           The duties of the committee shall include: 
           (1) an annual report by January 15 to the governor and the 
        education committees of the legislature, including 
        recommendations for legislative action when needed, on student 
        bus safety education, school bus equipment requirements and 
        inspection, bus driver licensing, training, and qualifications, 
        bus operation procedures, student behavior and discipline, rules 
        of the road, school bus safety education for the public, or any 
        other aspects of school transportation safety the committee 
        considers appropriate; 
           (2) a quarterly review of all school transportation 
        accidents, crimes, incidents of serious misconduct, incidents 
        that result in serious personal injury or death, and bus driver 
        dismissals for cause; and 
           (3) periodic review of school district comprehensive 
        transportation safety policies. 
           Subd. 3.  [PUPIL TRANSPORTATION SAFETY DIRECTOR.] The 
        commissioner of public safety or the commissioner's designee 
        shall serve as pupil transportation safety director. 
           The duties of the pupil transportation safety director 
        shall include: 
           (1) overseeing all department activities related to school 
        bus safety; 
           (2) assisting in the development, interpretation, and 
        implementation of laws and policies relating to school bus 
        safety; 
           (3) supervising preparation of the school bus inspection 
        manual; 
           (4) in conjunction with the department of education, 
        assisting school districts in developing and implementing 
        comprehensive transportation policies; and 
           (5) providing information requested by the school bus 
        safety advisory committee. 
           Sec. 14.  [123.805] [SCHOOL DISTRICT BUS SAFETY 
        RESPONSIBILITIES.] 
           Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
        district shall develop and implement a comprehensive, written 
        policy governing pupil transportation safety.  The policy shall, 
        at minimum, contain: 
           (1) provisions for appropriate student bus safety training 
        under section 4; 
           (2) rules governing student conduct on school buses and in 
        school bus loading and unloading areas; 
           (3) a statement of parent or guardian responsibilities 
        relating to school bus safety; 
           (4) provisions for notifying students and parents or 
        guardians of their responsibilities and the rules; 
           (5) an intradistrict system for reporting school bus 
        accidents or misconduct, a system for dealing with local law 
        enforcement officials in cases of criminal conduct on a school 
        bus, and a system for reporting accidents, crimes, incidents of 
        misconduct, and bus driver dismissals to the department of 
        public safety under section 24; 
           (6) a discipline policy to address violations of school bus 
        safety rules, including procedures for revoking a student's bus 
        riding privileges in cases of serious or repeated misconduct; 
           (7) a system for integrating school bus misconduct records 
        with other discipline records; 
           (8) a statement of bus driver duties; 
           (9) planned expenditures for safety activities under 
        section 3 and, where applicable, provisions governing bus 
        monitor qualifications, training, and duties; 
           (10) rules governing the use and maintenance of type III 
        vehicles, drivers of type III vehicles, and the circumstances 
        under which a student may be transported in a type III vehicle; 
           (11) operating rules and procedures; 
           (12) provisions for annual bus driver in-service training 
        and evaluation; 
           (13) emergency procedures; and 
           (14) a system for maintaining and inspecting equipment. 
           School districts are encouraged to use the current edition 
        of the "National Standards for School Buses and Operations" 
        published by the National Safety Council in developing safety 
        policies.  Each district shall submit a copy of its policy under 
        this subdivision to the school bus safety advisory committee no 
        later than August 1, 1994, and review and make appropriate 
        amendments annually by August 1. 
           Subd. 2.  [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 
        school board shall designate a school transportation safety 
        director to oversee and implement pupil transportation safety 
        policies.  The director shall have day-to-day responsibility for 
        pupil transportation safety. 
           Sec. 15.  Minnesota Statutes 1992, section 169.441, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SIGN ON BUS; APPLICATION OF OTHER LAW.] Sections 
        169.442, subdivisions 2 and 3; 169.443, subdivision 2; and 
        169.444, subdivisions 1, 4, and 5, apply only if the school bus 
        bears on its front and rear a plainly visible sign containing 
        the words "school bus" in letters at least eight inches in 
        height. 
           Except as provided in section 169.443, subdivision 8, the 
        sign must be removed or covered when the vehicle is being used 
        as other than a school bus.  
           Sec. 16.  Minnesota Statutes 1992, section 169.442, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SIGNALS REQUIRED.] A type I A, B, C, or 
        type II D school bus must be equipped with a stop signal arm, 
        prewarning flashing amber signals, and flashing red signals. 
           Sec. 17.  Minnesota Statutes 1992, section 169.443, 
        subdivision 8, is amended to read: 
           Subd. 8.  [USE FOR RECREATIONAL OR EDUCATIONAL ACTIVITY.] A 
        school bus that transports over regular routes and on regular 
        schedules persons age 18 or under to and from a regularly 
        scheduled recreational or educational activity must comply with 
        subdivisions 1 and 7.  Notwithstanding section 169.441, 
        subdivision 3, a school bus may provide such transportation only 
        if (1) the "school bus" sign required by section 169.443, 
        subdivision 3, is plainly visible; (2) the school bus has a 
        valid certificate of inspection under section 169.451; (3) the 
        driver of the school bus possesses a driver's license with a 
        valid school bus endorsement under section 171.10; and (4) the 
        entity that organizes the recreational or educational activity, 
        or the contractor who provides the school buses to the entity, 
        consults with the superintendent of the school district in which 
        the activity is located or the superintendent's designee on the 
        safety of the regular routes used. 
           Sec. 18.  Minnesota Statutes 1992, section 169.445, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COOPERATION OF SCHOOL AUTHORITIES.] 
        The state board of education commissioner of public safety shall 
        ensure that local authorities having jurisdiction over school 
        buses shall cooperate with law enforcement and judicial 
        authorities in reporting and prosecuting violators of sections 
        169.443 and 169.444. 
           Sec. 19.  Minnesota Statutes 1992, section 169.445, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INFORMATION; RULES.] The board commissioner 
        shall compile information regarding violations, prosecutions, 
        convictions or other disposition, and penalties imposed under 
        sections 169.443 and 169.444.  At the request of the board 
        commissioner, local school authorities shall provide this 
        information.  The board commissioner may adopt rules governing 
        the content and providing procedures for the school authorities 
        to provide this information. 
           Sec. 20.  Minnesota Statutes 1992, section 169.446, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DRIVER EDUCATION PROGRAMS.] The state board of 
        education commissioner of public safety shall adopt rules 
        requiring thorough instruction concerning section 169.444 for 
        persons enrolled in driver education programs offered at public 
        schools.  The instruction must encompass at least the 
        responsibilities of drivers, the content and requirements of 
        section 169.444, and the penalties for violating that section. 
           Sec. 21.  Minnesota Statutes 1992, section 169.447, 
        subdivision 6, is amended to read: 
           Subd. 6.  [OVERHEAD BOOK RACKS.] Types I A, B, C, and II D 
        school buses may be equipped with padded, permanent overhead 
        book racks that do not hang over the center aisle of the bus.  
           Sec. 22.  [169.449] [SCHOOL BUS OPERATIONS.] 
           Subdivision 1.  [RULES.] The commissioner of public safety, 
        in consultation with the school bus safety advisory committee, 
        shall adopt rules governing the operation of school buses used 
        for transportation of school children, when owned or operated by 
        a school or privately owned and operated under a contract with a 
        school, and these rules must be made a part of that contract by 
        reference.  Each school, its officers and employees, and each 
        person employed under the contract is subject to these rules. 
           Subd. 2.  [ENFORCEMENT.] The operation of a school bus on 
        the public streets or highways in violation of rules concerning 
        the operation of school buses adopted by the commissioner under 
        subdivision 1 is a misdemeanor.  The state patrol shall enforce 
        rules adopted under subdivision 1 when a school bus is operated 
        on a public street or highway. 
           Sec. 23.  [169.4501] [SCHOOL BUS EQUIPMENT STANDARDS.] 
           Subdivision 1.  [NATIONAL STANDARDS ADOPTED.] Except as 
        provided in sections 36 and 37, the construction, design, 
        equipment, and color of types A, B, C, and D school buses used 
        for the transportation of school children shall meet the 
        requirements of the "bus chassis standards" and "bus body 
        standards" in the 1990 revised edition of the "National 
        Standards for School Buses and Operations" adopted by the 
        Eleventh National Conference on School Transportation and 
        published by the National Safety Council.  Except as provided in 
        section 38, the construction, design, and equipment of types A, 
        B, C, and D school buses used for the transportation of students 
        with disabilities also shall meet the requirements of the 
        "specially equipped school bus standards" in the 1990 National 
        Standards for School Buses and Operations.  The "bus chassis 
        standards," "bus body standards," and "specially equipped school 
        bus standards" sections of the 1990 revised edition of the 
        "National Standards for School Buses and Operations" are 
        incorporated by reference in this chapter. 
           Subd. 2.  [APPLICABILITY.] (a) The standards adopted in 
        this section and sections 36 and 37, govern the construction, 
        design, equipment, and color of school buses used for the 
        transportation of school children, when owned and operated by a 
        school or privately owned and operated under a contract with a 
        school, and these standards must be made a part of that contract 
        by reference.  Each school, its officers and employees, and each 
        person employed under the contract is subject to these standards.
           (b) The standards apply to school buses manufactured after 
        December 31, 1994.  Buses complying with these standards when 
        manufactured need not comply with standards established later 
        except as specifically provided for by law. 
           (c) A school bus manufactured on or before December 31, 
        1994, must conform to the Minnesota standards in effect on the 
        date the vehicle was manufactured except as specifically 
        provided for in law. 
           (d) A new bus body may be remounted on a used chassis 
        provided that the remounted vehicle meets state and federal 
        standards for new buses which are current at the time of the 
        remounting.  Permission must be obtained from the commissioner 
        of public safety before the remounting is done.  A used bus body 
        may not be remounted on a new or used chassis. 
           Subd. 3.  [INSPECTION MANUAL.] The department of public 
        safety shall develop a school bus inspection manual based on the 
        national standards adopted in subdivision 1 and Minnesota 
        standards adopted in sections 36, 37, and 38.  The Minnesota 
        state patrol shall use the manual as the basis for inspecting 
        buses as provided in section 169.451.  When appropriate, the 
        school bus safety advisory committee shall recommend to the 
        education committees of the legislature modifications to the 
        standards upon which the school bus inspection manual is based.  
        The department of public safety has no rulemaking authority to 
        alter the standards upon which school buses are inspected. 
           Subd. 4.  [VARIANCES.] The commissioner of public safety 
        may grant a variance to any of the school bus standards to 
        accommodate testing of new equipment related to school buses.  A 
        variance from the standards must be for the sole purpose of 
        testing and evaluating new equipment for increased safety, 
        efficiency, and economy of pupil transportation.  The variance 
        expires 18 months from the date on which it is granted unless 
        the commissioner specifies an earlier expiration date.  The 
        school bus safety advisory committee shall annually review all 
        variances that are granted under this subdivision and consider 
        whether to recommend modifications to the Minnesota school bus 
        equipment standards based on the variances. 
           Sec. 24.  [169.452] [ACCIDENT AND SERIOUS INCIDENT 
        REPORTING.] 
           The department of public safety shall develop uniform 
        definitions of a school bus accident, an incident of serious 
        misconduct, and an incident that results in personal injury or 
        death.  The department shall determine what type of information 
        on school bus accidents and incidents, including criminal 
        conduct, and bus driver dismissals for cause should be collected 
        and develop a uniform accident and incident reporting form to 
        collect those data, including data relating to type III 
        vehicles, statewide.  Data collected with this reporting form 
        shall be analyzed to help develop accident, crime, and 
        misconduct prevention programs. 
           Sec. 25.  [169.454] [TYPE III VEHICLE STANDARDS.] 
           Subdivision 1.  [STANDARDS.] This section applies to type 
        III vehicles used for the transportation of school children when 
        owned and operated by a school district or privately owned and 
        operated.  All related equipment provided on the vehicle must 
        comply with federal motor vehicle safety standards where 
        applicable.  If no federal standard applies, equipment must be 
        manufacture's standard. 
           Subd. 2.  [AGE OF VEHICLE.] Vehicles ten years or older 
        must not be used as type III vehicles to transport school 
        children, except those vehicles that are manufactured to meet 
        the structural requirements of federal motor vehicle safety 
        standard 222, Code of Federal Regulations, title 49, part 571. 
           Subd. 3.  [COLOR.] Vehicles must be painted a color other 
        than national school bus yellow. 
           Subd. 4.  [FIRE EXTINGUISHER.] A minimum of one 10BC rated 
        dry chemical type fire extinguisher is required.  The 
        extinguisher must be mounted in a bracket, and must be located 
        in the driver's compartment and be readily accessible to the 
        driver and passengers.  A pressure indicator is required and 
        must be easily read without removing the extinguisher from its 
        mounted position. 
           Subd. 5.  [FIRST AID KIT.] A minimum of a ten unit first 
        aid kit is required.  The bus must have a removable, moisture- 
        and dust-proof first aid kit mounted in an accessible place 
        within the driver's compartment and must be marked to indicate 
        its location. 
           Subd. 6.  [IDENTIFICATION.] The vehicle must not have the 
        words "school bus" in any location on the exterior of the 
        vehicle, or in any interior location visible to a motorist. 
           The vehicle must display to the rear of the vehicle this 
        sign:  "VEHICLE STOPS AT RR CROSSINGS." 
           The lettering (except for "AT," which may be one inch 
        smaller) must be a minimum two-inch "Series D" as specified in 
        standard alphabets for highway signs as specified by the Federal 
        Highway Administration.  The printing must be in a color giving 
        a marked contract with that of the part of the vehicle on which 
        it is placed. 
           The sign must have provisions for being covered, or be of a 
        removable or fold-down type. 
           Subd. 7.  [LAMPS AND SIGNALS.] Installation and use of the 
        eight-lamp warning system is prohibited. 
           All lamps on the exterior of the vehicle must conform with 
        and be installed as required by federal motor vehicle safety 
        standard 108, Code of Federal Regulations, title 49, part 571. 
           Subd. 8.  [STOP SIGNAL ARM.] Installation and use of a stop 
        signal arm is prohibited. 
           Subd. 9.  [MIRRORS.] The interior clear rearview mirror 
        must afford a good view of pupils and roadway to the rear.  Two 
        exterior clear rearview mirrors must be provided, one to the 
        left and one to the right of the driver.  Each mirror must be 
        firmly supported and adjustable to give the driver clear view 
        past the left rear and the right rear of the bus. 
           Subd. 10.  [WARNING DEVICE.] A type III bus must contain at 
        least three red reflectorized triangle road warning devices.  
        Liquid burning "pot type" flares are not allowed. 
           Subd. 11.  [EMERGENCY DOORS.] The doors on type III buses 
        must remain unlocked when carrying passengers. 
           Subd. 12.  [OPTION.] Passenger cars and station wagons may 
        carry fire extinguisher, first aid kit, and warning triangles in 
        the trunk or trunk area of the vehicle, if a label in the driver 
        and front passenger area clearly indicates the location of these 
        items. 
           Sec. 26.  [169.4581] [LAW ENFORCEMENT POLICY FOR CRIMINAL 
        CONDUCT ON SCHOOL BUSES.] 
           By January 1, 1995, each local law enforcement agency shall 
        adopt a written policy regarding procedures for responding to 
        criminal incidents on school buses.  In adopting a policy, each 
        law enforcement agency shall consult with local school 
        officials, with representatives of private companies that 
        contract with school districts to provide transportation, and 
        with parents of students.  The policy must recognize that 
        responding to reports of criminal conduct on school buses is the 
        responsibility of law enforcement officials. 
           Sec. 27.  [169.4582] [REPORTING INCIDENTS ON SCHOOL BUSES.] 
           Subdivision 1.  [REPORTABLE OFFENSE; DEFINITION.] 
        "Reportable offense" means misbehavior causing an immediate and 
        substantial danger to self or surrounding persons or property 
        under section 127.29. 
           Subd. 2.  [DUTY TO REPORT; SCHOOL OFFICIAL.] Consistent 
        with the school bus safety policy under section 123.805, 
        subdivision 1, the school principal, the school transportation 
        safety director, or other designated school official shall 
        immediately report to the local law enforcement agency having 
        jurisdiction where the misbehavior occurred and to the school 
        superintendent if the reporting school official knows or has 
        reason to believe that a student has committed a reportable 
        offense on a school bus or in a bus loading or unloading area.  
        The reporting school official shall issue a report to the 
        commissioner of public safety concerning the incident, on a form 
        developed by the commissioner for that purpose. 
           Sec. 28.  Minnesota Statutes 1992, section 169.64, 
        subdivision 8, is amended to read: 
           Subd. 8.  [WHITE STROBE LAMPS.] Notwithstanding sections 
        169.55, subdivision 1, 169.57, subdivision 3, clause (b), or any 
        other law to the contrary, a vehicle may be equipped with a 
        360-degree flashing strobe lamp that emits a white light with a 
        flash rate of 60 to 120 flashes a minute, and the lamp may be 
        used as provided in this subdivision, if the vehicle is: 
           (1) a school bus that is subject to and complies with the 
        color and equipment requirements of sections 169.441, 
        subdivisions subdivision 1 and 2, and 169.442, subdivision 1.  
        The lamp shall be permanently mounted on the longitudinal center 
        line of the bus roof not less than five feet nor more than seven 
        feet forward of the rear roof edge.  It shall operate from a 
        separate switch containing an indicator lamp to show when the 
        strobe lamp is in use.  The strobe lamp may be lighted only when 
        atmospheric conditions or terrain restrict the visibility of 
        school bus lamps and signals so as to require use of the bright 
        strobe lamp to alert motorists to the presence of the school 
        bus.  A strobe lamp may not be lighted unless the school bus is 
        actually being used as a school bus; or 
           (2) a road maintenance vehicle owned or under contract to 
        the department of transportation or a road authority of a 
        county, home rule or statutory city, or town, but the strobe 
        lamp may only be operated while the vehicle is actually engaged 
        in snow removal during daylight hours.  
           The strobe lamp shall be of a double flash type certified 
        to the commissioner of public safety by the manufacturer as 
        being weatherproof and having a minimum effective light output 
        of 200 candelas as measured by the Blondel-Rey formula. 
           Sec. 29.  Minnesota Statutes 1993 Supplement, section 
        171.321, subdivision 2, is amended to read: 
           Subd. 2.  [RULES; QUALIFICATIONS AND TRAINING.] (a) The 
        commissioner of public safety shall prescribe rules governing 
        the qualifications of individuals to drive school buses physical 
        qualifications of school bus drivers and tests required to 
        obtain a school bus endorsement.  The rules must provide that an 
        applicant for a school bus endorsement or renewal is exempt from 
        the physical qualifications and medical examination required to 
        operate a school bus upon providing evidence of being medically 
        examined and certified within the preceding 24 months as 
        physically qualified to operate a commercial motor vehicle, 
        pursuant to Code of Federal Regulations, title 49, part 391, 
        subpart E, or rules of the commissioner of transportation 
        incorporating those federal regulations.  
           (b) The commissioner of public safety, in conjunction with 
        the commissioner of education, shall adopt a training program 
        for school bus drivers.  Adoption of the program is not subject 
        to chapter 14.  The program must provide for initial classroom 
        and behind-the-wheel training, and annual in-service training.  
        The program must provide training in defensive driving, human 
        relations, emergency and accident procedures, vehicle 
        maintenance, traffic laws, and use of safety equipment.  The 
        program must provide that the training will be conducted by the 
        contract operator for a school district, the school district, 
        the commissioner of education, a licensed driver training 
        school, or by another person or entity approved by both 
        commissioners.  
           Sec. 30.  Minnesota Statutes 1992, section 171.321, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STUDY OF APPLICANT.] Before issuing or renewing 
        a school bus endorsement, the commissioner shall conduct a 
        criminal and driver's license records check of the applicant.  
        The commissioner may also conduct the check at any time while a 
        person is so licensed.  The check shall consist of a criminal 
        records check of the state criminal records repository and a 
        check of the driver's license records system.  If the applicant 
        has resided in Minnesota for less than five years, the check 
        shall also include a criminal records check of information from 
        the state law enforcement agencies in the states where the 
        person resided during the five years before moving to Minnesota, 
        and of the national criminal records repository including the 
        criminal justice data communications network.  The applicant's 
        failure to cooperate with the commissioner in conducting the 
        records check is reasonable cause to deny an application or 
        cancel a school bus endorsement.  The commissioner may not 
        release the results of the records check to any person except 
        the applicant. 
           Sec. 31.  Minnesota Statutes 1992, section 171.321, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [TRAINING.] No person shall drive a class A, B, 
        C, or D school bus when transporting school children to or from 
        school or upon a school-related trip or activity without having 
        demonstrated sufficient skills and knowledge to transport 
        students in a safe and legal manner.  A bus driver must have 
        training or experience that allows the driver to meet at least 
        the following competencies: 
           (1) safely operate the type of school bus the driver will 
        be driving; 
           (2) understand student behavior, including issues relating 
        to students with disabilities; 
           (3) ensure orderly conduct of students on the bus and 
        handle incidents of misconduct appropriately; 
           (4) know and understand relevant laws, rules of the road, 
        and local school bus safety policies; 
           (5) handle emergency situations; 
           (6) safely load and unload students; and 
           (7) demonstrate proficiency in first aid and 
        cardiopulmonary resuscitation procedures. 
           The commissioner of public safety, in conjunction with the 
        commissioner of education, shall develop a comprehensive model 
        school bus driver training program and model assessments for 
        school bus driver training competencies, which are not subject 
        to chapter 14.  A school district may use alternative 
        assessments for bus driver training competencies with the 
        approval of the commissioner of public safety. 
           Sec. 32.  Minnesota Statutes 1992, section 171.321, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [ANNUAL EVALUATION.] A school district, nonpublic 
        school, or private contractor shall evaluate each bus driver 
        annually to assure that, at minimum, each driver continues to 
        meet school bus driver training competencies under subdivision 
        4.  A school district, nonpublic school, or private contractor 
        also shall provide at least eight hours of in-service training 
        annually to each school bus driver.  As part of the annual 
        evaluation, a district, nonpublic school, or private contractor 
        shall check the license of each person who transports students 
        for the district with the National Drivers Register or the 
        department of public safety.  A school district, nonpublic 
        school, or private contractor shall certify annually to the 
        commissioner of public safety that each driver has received 
        eight hours of in-service training and has met the training 
        competencies. 
           Sec. 33.  Minnesota Statutes 1992, section 171.3215, is 
        amended to read: 
           171.3215 [CANCELING BUS DRIVER'S ENDORSEMENT FOR CRIME 
        AGAINST MINOR CERTAIN OFFENSES.] 
           Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
        the following terms have the meanings given them. 
           (1) (b) "School bus driver" means a person possessing a 
        school bus driver's endorsement on a valid Minnesota driver's 
        license or a person possessing a valid Minnesota driver's 
        license who drives a vehicle with a seating capacity of ten or 
        less persons used as a school bus. 
           (2) "Crime against a minor" means an act committed against 
        a minor victim that constitutes a violation of section 609.185, 
        609.19, 609.195, 609.20, 609.205, 609.21, subdivision 1, 
        609.221, 609.222, 609.223, 609.342, 609.343, 609.344, 609.345, 
        609.352, or a felony violation of section 609.322, 609.323, 
        609.324, or 609.377. 
           (c) "Disqualifying offense" includes any felony offense, 
        any misdemeanor, gross misdemeanor, or felony violation of 
        chapter 152, any violation under section 609.3451, 609.746, 
        subdivision 1, or 617.23, or a fourth moving violation within a 
        three-year period. 
           Subd. 2.  [CANCELLATION.] The commissioner Within 10 days 
        of receiving notice under section 631.40, subdivision 1a, that a 
        school bus driver has committed been convicted of a crime 
        against a minor disqualifying offense, the commissioner shall 
        permanently cancel the school bus driver's endorsement on the 
        offender's driver's license.  Within ten days of receiving 
        notice under section 631.40, subdivision 1a, that a school bus 
        driver has been convicted of a gross misdemeanor or a violation 
        of section 169.121 or 169.129, and within ten days of revoking a 
        school bus driver's license under section 169.123, the 
        commissioner shall cancel the school bus driver's endorsement on 
        the offender's driver's license for five years.  After five 
        years, cancellation of a school bus driver's endorsement for a 
        conviction under section 169.121 or 169.129 shall remain in 
        effect until the driver provides proof of successful completion 
        of an alcohol or controlled substance treatment program.  Upon 
        canceling the offender's school bus driver's endorsement, 
        the department commissioner shall immediately notify the 
        licensed offender of the cancellation in writing, by depositing 
        in the United States post office a notice addressed to the 
        licensed offender at the licensed offender's last known address, 
        with postage prepaid thereon. 
           Subd. 3.  [BACKGROUND CHECK.] Before issuing or renewing a 
        driver's license with a school bus driver's endorsement, 
        the department commissioner shall conduct an investigation to 
        determine whether if the applicant has been convicted of 
        committing a crime against a minor disqualifying offense, a 
        violation of section 169.121 or 169.129, a gross misdemeanor, or 
        if the applicant's driver's license has been revoked under 
        section 169.123.  The department commissioner shall not issue a 
        new bus driver's endorsement and shall not renew an existing bus 
        driver's endorsement if the applicant has been convicted of 
        committing a crime against a minor disqualifying offense.  The 
        commissioner shall not issue a new bus driver's endorsement and 
        shall not renew an existing bus driver's endorsement if, within 
        the previous five years, the applicant has been convicted of 
        committing a violation of section 169.121 or 169.129, or a gross 
        misdemeanor, or if the applicant's driver's license has been 
        revoked under section 169.123.  An applicant who has been 
        convicted of violating section 169.121 or 169.129 within the 
        previous ten years must show proof of successful completion of 
        an alcohol or controlled substance treatment program in order to 
        receive a bus driver's endorsement. 
           Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] The 
        commissioner of public safety, in consultation with the school 
        bus safety advisory committee, may waive the permanent 
        cancellation requirement of section 171.3215 for a person 
        convicted of a nonfelony violation of chapter 152 or a felony 
        that is not a violent crime under section 609.152. 
           Sec. 34.  Minnesota Statutes 1992, section 631.40, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  When a person is convicted of committing a crime 
        against a minor disqualifying offense, as defined in section 
        171.3215, subdivision 1, a gross misdemeanor, or a violation of 
        section 169.121 or 169.129, the court shall order that the 
        presentence investigation include information about determine 
        whether the offender is a school bus driver as defined in 
        section 171.3215, subdivision 1, whether the offender possesses 
        a school bus driver's endorsement on the offender's driver's 
        license and in what school districts the offender drives a 
        school bus.  If the offender is a school bus driver or possesses 
        a school bus driver's endorsement, the court administrator shall 
        send a certified copy of the conviction to the department of 
        public safety and to the school districts in which the offender 
        drives a school bus within ten days after the conviction. 
           Sec. 35.  Laws 1993, chapter 224, article 12, section 39, 
        is amended to read: 
           Sec. 39.  [REPEALER.] 
           (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 
        and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 
        3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 
        3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 
        3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 
        3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 
        3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 
        3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 
        3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 
        3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 
        3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 
        3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 
        3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 
        5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 
        3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 
        3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 
        3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 
        3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 
        3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 
        3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 
        3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 
        3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 
        3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 
        3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 
        3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 
        3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 
        8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 
           (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 
        3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 
        3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 
        3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 
        3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 
        3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 
        3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 
        3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 
        3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 
        3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 
        3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 
        3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 
        3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 
        3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 
        3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 
        3520.5710; 3520.5900; 3520.5910; 3520.5920; 3530.6500; 
        3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 
        3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 
        3530.7600; 3530.7700; and 3530.7800, are repealed. 
           (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0100; 
        3510.0200; 3510.0300; 3510.0400; 3510.0500; 3510.0600; 
        3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 
        3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 
        3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 
        3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 
        3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8100; 
        3510.8200; 3510.8300; 3510.8400; 3510.8500; 3510.8600; 
        3510.8700; 3510.9000; 3510.9100; chapters 3515, 3517.0100; 
        3517.0120; 3517.3150; 3517.3170; 3517.3420; 3517.3450; 
        3517.3500; 3517.3650; 3517.4000; 3517.4100; 3517.4200; 
        3517.8500; 3517.8600;, and 3520.2400; 3520.2500; 3520.2600; 
        3520.2800; 3520.3100; 3520.3400; and chapter 3560, are repealed. 
           (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 
        3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 
        3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 
        3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 
        3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 
        3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 
        3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 
        3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 
        3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 
        8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 
        8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 
        8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 
        8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 
        8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 
        8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 
        8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 
        8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 
        8700.6310; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 
        8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 
        8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 
        8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 
        8700.8160; 8700.8170; 8700.8180; 8700.8190; 8750.0200; 
        8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 
        8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 
        8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 
        8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 
        8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 
        8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 
        8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 
        8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 
        8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 
        8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 
        8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 
        8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 
        8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 
        8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 
        8750.2140; 8750.4000; 8750.4100; 8750.4200; 8750.9000; 
        8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 
        8750.9600; and 8750.9700, are repealed. 
           Sec. 36.  [ADDITIONAL MINNESOTA SCHOOL BUS CHASSIS 
        STANDARDS.] 
           Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The bus 
        chassis standards contained in this section are required in 
        addition to those required by Minnesota Statutes, section 
        169.4501.  When a Minnesota standard contained in this section 
        conflicts with a national standard adopted in Minnesota 
        Statutes, section 169.4501, the Minnesota standard contained in 
        this section is controlling. 
           Subd. 2.  [BRAKES.] The braking system must include an 
        emergency brake.  The braking system must meet federal motor 
        vehicle safety standards in effect at the time of manufacture.  
        All buses manufactured with air brakes after January 1, 1995, 
        shall have automatic slack adjusters. 
           Subd. 3.  [CERTIFICATION.] A chassis manufacturer shall 
        certify that the product meets Minnesota standards.  All buses 
        with a certified manufacturing date prior to April 1, 1977, 
        shall not be recertified as a school bus after January 1, 1996. 
           Subd. 4.  [COLOR.] Fenders may be painted black.  The hood 
        may be painted nonreflective black or nonreflective yellow.  The 
        grill may be manufacturer's standard color. 
           Subd. 5.  [ELECTRICAL SYSTEM; BATTERY.] (a) The storage 
        battery, as established by the manufacturer's rating, must be of 
        sufficient capacity to care for starting, lighting, signal 
        devices, heating, and other electrical equipment.  In a bus with 
        a gas-powered chassis, the battery or batteries must provide a 
        minimum of 800 cold cranking amperes.  In a bus with a 
        diesel-powered chassis, the battery or batteries must provide a 
        minimum of 1050 cold cranking amperes. 
           (b) In a type B bus with a gross vehicle weight rating of 
        15,000 pounds or more, and type C and D buses, the battery shall 
        be temporarily mounted on the chassis frame.  The final location 
        of the battery and the appropriate cable lengths in these buses 
        must comply with the SBMI design objectives booklet. 
           (c) All batteries shall be mounted according to chassis 
        manufacturers' recommendations. 
           (d) In a type C bus, other than are powered by diesel fuel, 
        a battery providing at least 550 cold cranking amperes may be 
        installed in the engine compartment only if used in combination 
        with a generator or alternator of at least 120 amperes. 
           (e) A bus with a gross vehicle weight rating of 15,000 
        pounds or less may be equipped with a battery to provide a 
        minimum of 550 cold cranking amperes only if used in combination 
        with an alternator of at least 80 amperes.  This paragraph does 
        not apply to those buses with wheel chair lifts or diesel 
        engines. 
           Subd. 6.  [ELECTRICAL SYSTEM; ALTERNATOR.] A bus must be 
        capable of providing enough current at 1400 rpms to provide a 
        positive charge to the battery with 80 percent of maximum load 
        with all lights and accessories on.  A type B bus with a gross 
        vehicle weight rating of up to 15,000 pounds equipped with an 
        electrical power lift must have a minimum 100 ampere per hour 
        alternator.  If not protected by a grommet, wiring passing 
        through holes must be encased in an abrasive-resistant 
        protective covering. 
           Subd. 7.  [EXHAUST SYSTEM.] The tailpipe must: 
           (1) extend to but not more than one inch beyond the bumper 
        and be mounted outside of the chassis frame rail; or 
           (2) extend to but not more than one inch beyond the left 
        side of the bus, behind the driver's compartment.  A type A bus 
        and a type B bus with a gross vehicle weight rating under 15,000 
        pounds, shall comply with the manufacturer's standard.  No 
        exhaust pipe may exit beneath an emergency exit, or, on a type C 
        or type D bus, under the fuel fill location.  No exhaust pipe 
        shall be reduced in size beyond the muffler. 
           Subd. 8.  [FRAME.] Installation of a trailer hitch is 
        permitted.  A hitch shall be flush mounted. 
           Subd. 9.  [FUEL TANK.] If mounted behind the rear wheels, 
        the fuel tank on a vehicle constructed with a power lift unit 
        shall be between the frame rails.  Fuel tanks for a type A bus 
        and for a type B bus with a gross vehicle weight rating under 
        15,000 pounds may be manufacturer standard and must conform with 
        federal motor vehicle safety standard number 301, Code of 
        Federal Regulations, title 49, part 571. 
           Subd. 10.  [HORN.] A bus shall be equipped with a horn in 
        good working order and capable of emitting sound audible under 
        normal conditions from a distance of not less than 200 feet. 
           Subd. 11.  [TIRES AND RIMS.] Radial and bias ply tires 
        shall not be used on the same axle.  Front tire tread depth 
        shall not be less than 4/32 inch in any major tire tread groove. 
        Rear tire tread shall not be less than 2/32 inch.  Tires must be 
        measured in three locations around the tire, in two adjoining 
        grooves.  No recapped tires shall be used on the front wheels.  
        Recapped tires are permitted on the rear wheels. 
           Subd. 12.  [TRANSMISSION.] The transmission shifting 
        pattern must be permanently displayed in the driver's full view. 
           Sec. 37.  [ADDITIONAL MINNESOTA SCHOOL BUS BODY STANDARDS.] 
           Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The bus 
        body standards contained in this section are required in 
        addition to those required by Minnesota Statutes, section 
        169.450, and section 36.  When a Minnesota standard contained in 
        this section conflicts with a national standard adopted in 
        Minnesota Statutes, section 169.450, the Minnesota standard 
        contained in this section is controlling. 
           Subd. 2.  [BACKUP WARNING ALARM.] A spring-loaded button in 
        the driver's compartment that will temporarily disable the 
        backup alarm is allowed for usage in school bus overnight 
        parking lots and repair facilities. 
           Subd. 3.  [BUMPER; FRONT.] On a type D school bus, the 
        bumper shall conform to federal motor vehicle safety standards. 
           Subd. 4.  [CERTIFICATION.] A body manufacturer shall 
        certify that the product meets Minnesota standards. 
           Subd. 5.  [COLOR.] Fenderettes may be black.  The beltline 
        may be painted yellow over black or black over yellow.  The rub 
        rails shall be black.  The reflective material on the sides of 
        the bus body shall be at least one inch but not more than two 
        inches in width.  This reflective material requirement and the 
        requirement that "SCHOOL BUS" signs have reflective material as 
        background are effective for buses manufactured after January 1, 
        1996. 
           Subd. 6.  [COMMUNICATIONS.] All buses manufactured after 
        January 1, 1995, shall have a two-way voice communications 
        system. 
           Subd. 7.  [CONSTRUCTION.] The metal floor shall be covered 
        with plywood.  The plywood shall be at least 19/32 inches thick, 
        and must equal or exceed properties of exterior-type softwood 
        plywood, grade C-D, as specified in product standard PSI-I83 
        issued by the United States Department of Commerce.  The floor 
        shall be level from front to back, and side to side, except in 
        wheel housing, toe board, and driver's seat platform areas. 
           Subd. 8.  [DEFROSTERS.] Except as provided in this 
        subdivision, defrosters and two auxiliary fans must direct a 
        sufficient flow of heated air and shall be of sufficient 
        capacity to keep the windshield, window to the left of the 
        driver, and glass in the entrance door clear of fog, frost, and 
        snow.  A type A or type B bus with a gross vehicle weight rating 
        under 15,000 pounds may be equipped with one auxiliary fan. 
           Subd. 9.  [DOORS; SERVICE DOOR.] A type B bus with a gross 
        vehicle weight rating of 15,000 pounds or over may not have a 
        door to the left of the driver.  A type B bus with a gross 
        vehicle weight rating under 15,000 pounds may be equipped with 
        chassis manufacturer's standard door. 
           Subd. 10.  [EMERGENCY EQUIPMENT; FIRE EXTINGUISHERS.] The 
        fire extinguisher must have at least a 10BC rating. 
           Subd. 11.  [EMERGENCY EQUIPMENT; WARNING DEVICES.] A 
        flashlight with a minimum of two "C" batteries shall be included 
        as part of the emergency equipment.  Each bus equipped with seat 
        belts for pupil passengers shall contain a seat belt cutter for 
        use in emergencies.  The belt cutter must be designed to 
        eliminate the possibility of injury during use, and must be 
        secured in a safe location. 
           Subd. 12.  [HEATERS.] The heating system shall be capable 
        of maintaining the temperature throughout the bus of not less 
        than 50 degrees Fahrenheit during average minimum January 
        temperature as established by the United States Department of 
        Commerce.  In a bus with a combustion heater, the heater must be 
        installed by the body manufacturer, by an authorized dealer or 
        authorized garage, or by a mechanic trained in the procedure. 
           Subd. 13.  [IDENTIFICATION.] (a) Each bus shall, in the 
        beltline, identify the school district serviced, or company 
        name, or owner of the bus.  Numbers necessary for identification 
        must appear on the sides and rear of the bus.  Symbols or 
        letters may be used on the outside of the bus near the entrance 
        door for student identification.  A manufacturer's nameplate may 
        be placed on the side of the bus near the entrance door and on 
        the rear. 
           (b) Effective December 31, 1994, all buses sold must 
        display lettering "Unlawful to pass when red lights are 
        flashing" on the rear of the bus.  The lettering shall be in 
        two-inch black letters on school bus yellow background.  This 
        message shall be displayed directly below the upper window of 
        the rear door.  On rear engine buses, it shall be centered at 
        approximately the same location.  Only signs and lettering 
        approved or required by state law may be displayed. 
           Subd. 14.  [INSULATION.] (a) Ceilings and wall shall be 
        insulated to a minimum of one and one-half inch fiberglass and 
        installed so the insulation does not compact or sag.  Floor 
        insulation must be nominal 19/32 inches thick plywood, or a 
        material of equal or greater strength and insulation R value 
        that equals or exceeds properties of exterior-type softwood 
        plywood, C-D grade as specified in standard issued by the United 
        States Department of Commerce.  Type A and B buses with a gross 
        vehicle weight rating under 15,000 pounds must have a minimum of 
        one-half inch plywood.  All exposed edges on plywood shall be 
        sealed. Every school bus shall be constructed so that the noise 
        level taken at the ear of the occupant nearest to the primary 
        vehicle noise source shall not exceed 85 dba when tested 
        according to procedures in the 1990 national standards for 
        school buses and operations. 
           (b) The underside of metal floor may be undercoated with 
        polyurethane floor insulation, foamed in place.  The floor 
        insulation must be combustion resistant.  The authorization in 
        this paragraph does not replace the plywood requirement. 
           Subd. 15.  [INTERIOR.] Interior speakers, except in the 
        driver's compartment, must not protrude more than one-half inch 
        from the mounting surface. 
           Subd. 16.  [LAMPS AND SIGNALS.] (a) Each school bus shall 
        be equipped with a system consisting of four red signal lamps 
        designed to conform to SAE Standard J887, and four amber signal 
        lamps designed to that standard, except for color, and except 
        that their candlepower must be at least 2-1/2 times that 
        specified for red turn signal lamps.  Both red and amber signal 
        lamps must be installed in accordance with SAE Standard J887, 
        except that each amber signal lamp must be located near each red 
        signal lamp, at the same level, but closer to the centerline of 
        the bus.  The system must be wired so that the amber signal 
        lamps are activated only by hand operation, and if activated, 
        are automatically deactivated and the red signal lamps are 
        automatically activated when the bus entrance door is opened.  
        Signal lamps must flash alternately.  Each signal lamp must 
        flash not less than 60 nor more than 120 flashes per minute.  
        The "on" period must be long enough to permit filament to come 
        up to full brightness.  There must be a pilot lamp which goes on 
        when the respective amber or red system is activated.  The pilot 
        lamp must either go out or flash at an alternate rate in the 
        event the system is not functioning normally.  The signal lamp 
        system must include a closed control box.  The box must be as 
        small as practical, and must be easily dismounted or partially 
        disassembled to provide access for maintenance purposes.  The 
        control panel box shall be arranged such that the momentary 
        activating switch for the eight-lamp warning system shall be 
        located on the left, the red (or red and amber) pilot light 
        shall be located in the middle, and the eight-way master switch 
        shall be located on the right.  The control box must be securely 
        mounted to the right of the steering wheel, within easy 
        unobstructed reach of the driver.  Switches and pilot lamp must 
        be readily visible to the driver.  The activating switch may be 
        self-illuminated.  Other warning devices or lamp controls must 
        not be placed near the lamp control.  The stop arm shall extend 
        automatically whenever the service entrance door is opened and 
        the eight-way lights are activated. 
           (b) If installed, a white flashing strobe shall be of a 
        double flash type and have minimum effective light output of 200 
        candelas.  No roof hatch can be mounted behind the strobe light. 
           (c) Type B, C, and D buses shall have an amber clearance 
        lamp with a minimum of four candlepower mounted on the right 
        side of the body at approximately seat level rub rail height 
        just to the rear of the service door and another one at 
        approximately opposite the driver's seat on the left side.  
        These lamps are to be connected to operate only with the regular 
        turn signal lamps. 
           (d) All lamps on the exterior of the vehicle must conform 
        with and be installed as required by federal motor vehicle 
        safety standard number 108, Code of Federal Regulations, title 
        49, part 571. 
           (e) A type A, B, C, or D school bus manufactured for use in 
        Minnesota after December 31, 1994, may not be equipped with red 
        turn signal lenses on the rear of the bus. 
           Subd. 17.  [MIRRORS.] A type B bus with a gross vehicle 
        weight rating less than 15,000 pounds shall have a minimum of 
        six-inch by 16-inch mirror.  A type B bus with a gross vehicle 
        weight rating over 15,000 pounds shall have a minimum of a 
        six-inch by 30-inch mirror.  After January 1, 1995, all school 
        buses must be equipped with a minimum of two crossover mirrors, 
        mounted to the left and right sides of the bus. 
           Subd. 18.  [OVERALL WIDTH.] The overall width limit 
        excludes mirrors, mirror brackets, and the stop arm. 
           Subd. 19.  [RUB RAILS.] There shall be one rub rail at the 
        base of the skirt of the bus on all type B, C, and D buses. 
           Subd. 20.  [SEAT AND CRASH BARRIERS.] All restraining 
        barriers and passenger seats shall be covered with a material 
        that has fire retardant or fire block characteristics.  All 
        seats must face forward.  All seat and crash barriers must be 
        installed according to and conform to federal motor vehicle 
        safety standard number 222, Code of Federal Regulations, title 
        49, part 571. 
           Subd. 21.  [STOP SIGNAL ARM.] The stop signal arm shall be 
        installed near the front of the bus. 
           Subd. 22.  [SUN SHIELD.] A type A bus and a type B bus with 
        a gross vehicle weight rating less than 15,000 pounds must be 
        equipped with the standard manufacturer's solid visor is 
        acceptable or a six-inch by 16-inch sun shield. 
           Subd. 23.  [WINDOWS.] Windshield, entrance, and rear 
        emergency exit doors must be of approved safety glass.  
        Laminated or tempered glass (AS-2 or AS-3) is permitted in all 
        other windows.  All glass shall be federally approved and marked 
        as provided in Minnesota Statutes, section 169.74.  The 
        windshield may be of uniform tint throughout or may have a 
        horizontal gradient band starting slightly above the line of 
        vision and gradually decreasing in light transmission to 20 
        percent or less at the top of the windshield.  The use of tinted 
        glass, as approved by Minnesota Statutes, section 169.71, is 
        permitted on side windows and rear windows except for the 
        entrance door, the first window behind the service door, and the 
        window to the left of the driver.  The window to the left of the 
        driver, the upper service door windows, and the window 
        immediately behind the entrance door must be thermal glass.  The 
        window to the left of the driver for type A and B buses with a 
        gross vehicle weight rating under 15,000 pounds need not be 
        thermal glass. 
           Subd. 24.  [WIRING.] If not protected by a grommet, wire 
        that passes through holes shall be encased in an 
        abrasive-resistant protective covering.  If a master cutoff 
        switch is used, it shall not be wired as to kill power to the 
        electric brake system. 
           Sec. 38.  [ADDITIONAL MINNESOTA STANDARDS FOR SPECIALLY 
        EQUIPPED SCHOOL BUSES.] 
           Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The 
        specially equipped school bus standards contained in this 
        section are required in addition to those required by Minnesota 
        Statutes, section 169.450.  When a Minnesota standard contained 
        in this section conflicts with a national standard adopted in 
        Minnesota Statutes, section 169.450, the Minnesota standard 
        contained in this section is controlling. 
           Subd. 2.  [COMMUNICATIONS.] All vehicles used to transport 
        disabled students shall be equipped with a two-way communication 
        system. 
           Subd. 3.  [RESTRAINING DEVICES.] Special restraining 
        devices such as shoulder harnesses, lap belts, and chest 
        restraint systems may be installed to the seats if the devices 
        do not require the alteration in any form of the seat, seat 
        cushion, framework, or related seat components.  The restraints 
        must be for the sole purpose of restraining students with 
        disabilities. 
           Subd. 4.  [SECUREMENT SYSTEM FOR MOBILE 
        SEATING.] Wheelchair securement devices must comply with all 
        requirements for wheelchair securement systems contained in 
        federal regulation in effect on the later of the date the bus 
        was manufactured or the date that a wheelchair securement system 
        was added to the bus. 
           Sec. 39.  [OPERATIONS RULES; CONTINUED EFFECT.] 
           Notwithstanding Minnesota Statutes 1992, section 14.05, 
        subdivision 1, Minnesota Rules 1991, parts 3520.2400, 3520.2500, 
        3520.2600, 3520.2800, 3520.3100, and 3520.3400, remain in effect 
        prior to June 30, 1995, until the commissioner of public safety 
        adopts rules relating to school bus operations. 
           Sec. 40.  [CURRENT BUS DRIVER TRAINING TIMELINE.] 
           A school bus driver hired before the effective date of 
        section 31 must meet the training competencies during the 
        driver's first annual evaluation under section 32. 
           Sec. 41.  [APPROPRIATION; DEPARTMENT OF EDUCATION.] 
           Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
        indicated in this section are appropriated from the general fund 
        to the department of education for the fiscal year designated. 
           Subd. 2.  [STUDENT TRANSPORTATION SAFETY.] For student 
        transportation safety aid according to Minnesota Statutes, 
        section 124.225, subdivision 8m: 
          $2,985,000      .......      1995 
           Sec. 42.  [APPROPRIATION; DEPARTMENT OF PUBLIC SAFETY.] 
           Subdivision 1.  [DEPARTMENT OF PUBLIC SAFETY.] The sums 
        indicated in this section are appropriated from the general fund 
        to the commissioner of public safety for the fiscal year 
        designated. 
           Subd. 2.  [SAFETY ADVISORY COMMITTEE.] For the school bus 
        safety advisory committee according to Minnesota Statutes, 
        section 169.44: 
             $15,000      .......      1995 
           Sec. 43.  [REPEALER.] 
           Minnesota Statutes 1992, sections 169.441, subdivision 2; 
        169.442, subdivisions 2 and 3; 169.445, subdivision 3; 169.447, 
        subdivision 3; and 169.45, are repealed.  Minnesota Statutes 
        1993 Supplement, section 123.80, is repealed. 
           Minnesota Rules, parts 3520.3600 and 3520.3700, are 
        repealed. 
           If enacted, 1994 S.F. No. 2913, article 4, section 81, is 
        repealed. 
                                   ARTICLE 13 
                             CONFORMING AMENDMENTS 
           Section 1.  Minnesota Statutes 1992, section 121.908, 
        subdivision 5, is amended to read: 
           Subd. 5.  All governmental units formed by joint powers 
        agreements entered into by districts pursuant to section 120.17, 
        120.1701, 123.351, 471.59, or any other law and all educational 
        cooperative service units and education districts shall be 
        subject to the provisions of this section. 
           Sec. 2.  Minnesota Statutes 1992, section 122.91, 
        subdivision 3, is amended to read: 
           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.  
           Members of an education district must be contiguous.  
        Districts with a cooperation agreement according to section 
        122.541 may belong to an education district only as a unit.  
           A noncontiguous district may be a member of an education 
        district if the state board of education determines that: 
           (1) a district between the education district and the 
        noncontiguous district has considered and is unwilling to become 
        a member; or 
           (2) a noncontiguous configuration of member districts has 
        sufficient technological or other resources to offer effective 
        levels of programs and services required under sections 122.94, 
        subdivision 2, and 122.945. 
           Sec. 3.  Minnesota Statutes 1992, section 122.937, 
        subdivision 4, is amended to read: 
           Subd. 4.  [JOINDER AND WITHDRAWAL.] (a) Notwithstanding 
        section 122.91, subdivision 5, A member district of an education 
        district that has entered into a collective bargaining agreement 
        negotiated by the education district under this section may 
        withdraw from the education district only at the end of a 
        two-year period for which the collective bargaining agreement is 
        in effect.  A member district withdrawing under this subdivision 
        must notify the education district board at least 365 days 
        before withdrawing.  The teachers in a withdrawing member 
        district are governed by the collective bargaining agreement in 
        effect for the education district until a successor agreement is 
        negotiated by the withdrawing district. 
           (b) Notwithstanding section 122.91, subdivision 5, A school 
        district may join an education district that has entered into a 
        collective bargaining agreement negotiated by the education 
        district under this section only at the end of the two-year 
        period for which the collective bargaining agreement is in 
        effect. 
           Sec. 4.  Minnesota Statutes 1992, section 123.932, 
        subdivision 11, is amended to read: 
           Subd. 11.  "Health services" means physician, dental, 
        nursing or optometric services provided to pupils in the field 
        of physical or mental health; provided the term does not include 
        direct educational instruction, services which are required 
        pursuant to section sections 120.17 and 120.1701, or services 
        which are eligible to receive special education aid pursuant to 
        section 124.32. 
           Sec. 5.  Minnesota Statutes 1992, section 124.223, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUPILS WITH DISABILITIES.] State transportation 
        aid is authorized for transportation or board and lodging of a 
        pupil with a disability when that pupil cannot be transported on 
        a regular school bus, the conveying of pupils with a disability 
        between home or a respite care facility and school and within 
        the school plant, necessary transportation of pupils with a 
        disability 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 sections 120.17 and 120.1701 are 
        provided, within or outside the district where services are 
        provided, and necessary transportation for resident pupils with 
        a disability required by section sections 120.17, subdivision 4a 
        , and 120.1701.  Transportation of pupils with a disability 
        between home or a respite care facility and school shall not be 
        subject to any distance requirement for children not yet 
        enrolled in kindergarten or to the requirement in subdivision 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. 
           Sec. 6.  Minnesota Statutes 1992, section 124.223, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SHARED TIME.] State transportation aid is 
        authorized for transportation from one educational facility to 
        another within the district for resident pupils enrolled on a 
        shared time basis in educational programs, and necessary 
        transportation required by section sections 120.17, subdivision 
        9, and 120.1701 for resident pupils with a disability who are 
        provided special instruction and services on a shared time basis.
           Sec. 7.  Minnesota Statutes 1993 Supplement, 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 paragraph (c), clause (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 15 percent per year for 
        districts operating a program under section 121.585 for grades 1 
        to 12 for all students in the district and 12-1/2 percent per 
        year for other districts 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 
        169.01, subdivision 6, paragraph (c) clause (5), 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) "Transportation category" means a category of 
        transportation service provided to pupils as follows:  
           (1) Regular transportation is transportation services 
        provided during the regular school year under section 124.223, 
        subdivisions 1 and 2, excluding the following transportation 
        services provided under section 124.223, subdivision 1:  
        transportation between schools; noon transportation to and from 
        school for kindergarten pupils attending half-day sessions; 
        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 transportation of elementary pupils to and from 
        school within a mobility zone. 
           (2) Nonregular transportation is transportation services 
        provided under section 124.223, subdivision 1, that are excluded 
        from the regular category and transportation services provided 
        under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
           (3) Excess transportation is transportation to and from 
        school during the regular school year for secondary pupils 
        residing at least one mile but less than two miles from the 
        public school they could attend or from the nonpublic school 
        actually attended, and transportation to and from school for 
        pupils residing less than one mile from school who are 
        transported because of extraordinary traffic, drug, or crime 
        hazards. 
           (4) Desegregation transportation is transportation during 
        the regular school year of pupils to and from schools located 
        outside their normal attendance areas under a plan for 
        desegregation mandated by the state board or under court order.  
           (5) Handicapped transportation is transportation provided 
        under section 124.223, subdivision 4, for pupils with a 
        disability between home or a respite care facility and school or 
        other buildings where special instruction required by section 
        sections 120.17 and 120.1701 is provided. 
           (d) "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. 
           (e) "Current year" means the school year for which aid will 
        be paid.  
           (f) "Base year" means the second school year preceding the 
        school year for which aid will be paid.  
           (g) "Base cost" means the ratio of: 
           (1) the sum of the authorized cost in the base year for 
        regular transportation as defined in paragraph (b) plus the 
        actual cost in the base year for excess transportation as 
        defined in paragraph (c); 
           (2) to the sum of the number of weighted FTE's in the 
        regular and excess categories in the base year. 
           (h) "Pupil weighting factor" for the excess transportation 
        category for a school district means the lesser of one, or the 
        result of the following computation: 
           (1) Divide the square mile area of the school district by 
        the number of FTE's in the regular and excess categories in the 
        base year. 
           (2) Raise the result in clause (1) to the one-fifth power. 
           (3) Divide four-tenths by the result in clause (2). 
           The pupil weighting factor for the regular transportation 
        category is one.  
           (i) "Weighted FTE's"  means the number of FTE's in each 
        transportation category multiplied by the pupil weighting factor 
        for that category. 
           (j) "Sparsity index" for a school district means the 
        greater of .005 or the ratio of the square mile area of the 
        school district to the sum of the number of weighted FTE's 
        transported by the district in the regular and excess categories 
        in the base year. 
           (k) "Density index" for a school district means the greater 
        of one or the result obtained by subtracting the product of the 
        district's sparsity index times 20 from two. 
           (l) "Contract transportation index" for a school district 
        means the greater of one or the result of the following 
        computation: 
           (1) Multiply the district's sparsity index by 20. 
           (2) Select the lesser of one or the result in clause (1). 
           (3) Multiply the district's percentage of regular FTE's in 
        the current year using vehicles that are not owned by the school 
        district by the result in clause (2). 
           (m) "Adjusted predicted base cost" means the predicted base 
        cost as computed in subdivision 3a as adjusted under subdivision 
        7a. 
           (n) "Regular transportation allowance" means the adjusted 
        predicted base cost, inflated and adjusted under subdivision 7b. 
           Sec. 8.  Minnesota Statutes 1992, section 124.2721, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY.] An education district is 
        eligible for education district revenue if the department 
        certifies that it meets the requirements of sections section 
        122.91, subdivisions 3 and 4, and 122.945.  The pupil units of a 
        school district that is a member of intermediate district No. 
        287, 916, or 917 may not be used to obtain revenue under this 
        section.  The pupil units of a school district may not be used 
        to obtain revenue under this section and section 124.575. 
           Sec. 9.  Minnesota Statutes 1992, section 124.2721, 
        subdivision 5, is amended to read: 
           Subd. 5.  [USES OF REVENUE.] Education district revenue is 
        under the control of the education district board.  Education 
        district revenue must be used by the education district board to 
        provide educational programs according to the agreement adopted 
        by the education district board, as required by section 122.94.  
           The education district board may pay to member school 
        districts a part of the education district revenue received by 
        the education district under this section only for programs that 
        are (1) available to all member districts, and (2) included in 
        the five-year plan under section 122.945. 
           Sec. 10.  Minnesota Statutes 1992, section 124.32, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PROGRAM AND AID APPROVAL.] Before June 1 of each 
        year, each district providing special instruction and services 
        to children with a disability shall submit to the commissioner 
        an application for approval of these programs and their budgets 
        for the next school year.  The application shall include an 
        enumeration of the costs proposed as eligible for state aid 
        pursuant to this section and of the estimated number and grade 
        level of children with a disability in the district who will 
        receive special instruction and services during the next school 
        year.  The application shall also include any other information 
        deemed necessary by the commissioner for the calculation of 
        state aid and for the evaluation of the necessity of the 
        program, the necessity of the personnel to be employed in the 
        program, the amount which the program will receive from grants 
        from federal funds, or special grants from other state sources, 
        and the program's compliance with the rules and standards of the 
        state board.  The commissioner shall review each application to 
        determine whether the program and the personnel to be employed 
        in the program are actually necessary and essential to meet the 
        district's obligation to provide special instruction and 
        services to children with a disability pursuant to section 
        sections 120.17 and 120.1701.  The commissioner shall not 
        approve aid pursuant to this section for any program or for the 
        salary of any personnel determined to be unnecessary or 
        unessential on the basis of this review.  The commissioner may 
        also withhold all or any portion of the aid for programs which 
        receive grants from federal funds, or special grants from other 
        state sources.  By August 31 the commissioner shall approve, 
        disapprove or modify each application, and notify each applying 
        district of the action and of the estimated amount of aid for 
        the programs.  The commissioner shall provide procedures for 
        districts to submit additional applications for program and 
        budget approval during the school year, for programs needed to 
        meet any substantial changes in the needs of children with a 
        disability in the district.  Notwithstanding the provisions of 
        section 124.15, the commissioner may modify or withdraw the 
        program or aid approval and withhold aid pursuant to this 
        section without proceeding according to section 124.15 at any 
        time the commissioner determines 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. 
           Sec. 11.  Minnesota Statutes 1992, section 127.43, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] For the purposes of 
        providing instruction to children with a disability under 
        section sections 120.17 and 120.1701, this section, and section 
        127.44, the following terms have the meanings given them.  
           Sec. 12.  Minnesota Statutes 1992, section 136D.23, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LIABILITY.] Except as to certificates of 
        indebtedness or bonds issued under sections 136D.27 and section 
        136D.28 hereof, no participating school district shall have 
        individual liability for the debts and obligations of the board 
        nor shall any individual serving as a member of the board have 
        such liability. 
           Sec. 13.  Minnesota Statutes 1992, section 136D.26, is 
        amended to read: 
           136D.26 [DISTRICT CONTRIBUTIONS, DISBURSEMENTS, CONTRACTS.] 
           In addition to or in lieu of the certification of tax 
        levies by the joint school board under section 136D.27, The 
        participating school districts may contribute funds to the 
        board.  Disbursements shall be made by the board in accordance 
        with section 123.34.  This board shall be subject to section 
        123.37. 
           Sec. 14.  Minnesota Statutes 1992, section 136D.74, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [PROHIBITED LEVIES.] Notwithstanding subdivision 
        4, section 136D.73, subdivision 3, or any other law to the 
        contrary, the intermediate school board may not certify, either 
        itself, to any participating district, or to any cooperating 
        school district, any levies for any purpose, except the levies 
        authorized by sections 124.2727, 124.83, subdivision 4, 127.05, 
        136C.411, 275.48, and 475.61, and for the intermediate school 
        board's obligations under section 268.06, subdivision 25, for 
        which a levy is authorized by section 124.912, subdivision 1. 
           Sec. 15.  Minnesota Statutes 1992, section 136D.83, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LIABILITY.] Except as to certificates of 
        indebtedness or bonds issued under section 136D.87 or 136D.89 
        hereof, no participating school district shall have individual 
        liability for the debts and obligations of the board nor shall 
        any individual serving as a member of the board have such 
        liability.  
           Sec. 16.  Minnesota Statutes 1992, section 136D.86, is 
        amended to read: 
           136D.86 [DISTRICT CONTRIBUTIONS, DISBURSEMENTS, CONTRACTS.] 
           In addition to or in lieu of the certification of tax 
        levies by the joint school board under section 136D.87, The 
        participating school districts may contribute funds to the 
        board.  Disbursements shall be made by the board in accordance 
        with section 123.34.  This board shall be subject to section 
        123.37.  
           Sec. 17.  Minnesota Statutes 1992, section 171.01, 
        subdivision 22, is amended to read: 
           Subd. 22.  [COMMERCIAL MOTOR VEHICLE.] "Commercial motor 
        vehicle" means a motor vehicle or combination of motor vehicles 
        used to transport passengers or property if the motor vehicle: 
           (1) has a gross vehicle weight of more than 26,000 pounds; 
           (2) has a towed unit with a gross vehicle weight of more 
        than 10,000 pounds and the combination of vehicles has a 
        combined gross vehicle weight of more than 26,000 pounds; 
           (3) is a bus; 
           (4) is of any size and is used in the transportation of 
        hazardous materials, except for those vehicles having a gross 
        vehicle weight of 26,000 pounds or less and carrying in bulk 
        tanks a total of not more than 200 gallons of liquid fertilizer 
        and petroleum products; or 
           (5) is outwardly equipped and identified as a school bus, 
        except for school buses defined in section 169.01, subdivision 
        6, paragraph (c) clause (5). 
           Sec. 18.  Minnesota Statutes 1993 Supplement, section 
        245.492, subdivision 10, is amended to read: 
           Subd. 10.  [INTERAGENCY EARLY INTERVENTION COMMITTEE.] 
        "Interagency early intervention committee" refers to the 
        committee established under section 120.17 120.1701, subdivision 
        12 5. 
           Sec. 19.  Minnesota Statutes 1992, section 252.21, is 
        amended to read: 
           252.21 [COUNTY BOARDS MAY MAKE GRANTS FOR DEVELOPMENTAL 
        ACHIEVEMENT CENTER SERVICES FOR CHILDREN WITH MENTAL RETARDATION 
        OR RELATED CONDITIONS.] 
           In order to assist county boards in carrying out 
        responsibilities for the provision of daytime developmental 
        achievement center services for eligible children, the county 
        board or boards are hereby authorized to make grants, within the 
        limits of the money appropriated, to developmental achievement 
        centers for services to children with mental retardation or 
        related conditions.  In order to fulfill its responsibilities to 
        children with mental retardation or related conditions as 
        required by sections 120.17, 120.1701, and 256E.08, subdivision 
        1, a county board may, beginning January 1, 1983, contract with 
        developmental achievement centers or other providers. 
                                   ARTICLE 14
                                   BURNSVILLE
           Section 1.  Minnesota Statutes 1992, section 124.242, is 
        amended to read: 
           124.242 [BUILDING BONDS FOR CALAMITIES.] 
           Subdivision 1.  [BONDS.] When a building owned by a school 
        district is substantially damaged by an act of God or other 
        means beyond the control of the district, the district may issue 
        general obligation bonds without an election to provide money 
        immediately to carry out its adopted health and safety program.  
        Each year the district must pledge an attributable share of its 
        health and safety revenue to the repayment of principal and 
        interest on the bonds.  The pledged revenue shall be transferred 
        to the debt redemption fund of the district.  The district shall 
        submit to the department of education the repayment schedule for 
        any bonds issued under this section.  The district shall deposit 
        in the debt redemption fund all proceeds received for specific 
        costs for which the bonds were issued, including but not limited 
        to:  
           (1) insurance proceeds; 
           (2) restitution proceeds; and 
           (3) proceeds of litigation or settlement of a lawsuit. 
           Before bonds are issued, the district must submit a 
        combined application to the commissioner of education for health 
        and safety revenue, according to section 124.83, and requesting 
        review and comment, according to section 121.15, subdivisions 6, 
        7, 8, and 9.  The commissioner shall complete all procedures 
        concerning the combined application within 20 days of receiving 
        the application.  The publication provisions of section 121.15, 
        subdivision 9, do not apply to bonds issued under this section.  
           Subd. 2.  [HEALTH AND SAFETY REVENUE.] For any fiscal year 
        where the total amount of health and safety revenue is limited, 
        the commissioner of education shall award highest priority to 
        health and safety revenue pledged to repay building bonds issued 
        under subdivision 1. 
           Sec. 2.  Laws 1993, chapter 224, article 5, section 46, 
        subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH AND SAFETY AID.] (a) For health and 
        safety aid according to Minnesota Statutes, section 124.83, 
        subdivision 5: 
             $11,260,000     .....     1994 
             $18,924,000     .....     1995 
           The 1994 appropriation includes $1,256,000 for 1993 and 
        $10,004,000 for 1994.  
           The 1995 appropriation includes $1,694,000 for 1994 and 
        $17,230,000 for 1995.  
           (b) $400,000 in fiscal year 1994 and $400,000 in fiscal 
        year 1995 is for health and safety management assistance 
        contracts under section 24. 
           (c) $60,000 of each year's appropriation shall be used to 
        contract with the state fire marshal to provide services under 
        Minnesota Statutes, section 121.502.  This amount is in addition 
        to the amount for this purpose in article 11.  
           (d) For fiscal year 1995, the sum of total health and 
        safety revenue and levies under section 3 may not exceed 
        $64,000,000.  The state board of education shall establish 
        criteria for prioritizing district health and safety project 
        applications not to exceed this amount.  In addition to the 
        criteria developed by the state board of education, for any 
        health and safety revenue authority that is redistributed, the 
        commissioner shall place highest priority on requests for health 
        and safety revenue to address calamities.  The commissioner may 
        request documentation as necessary from school districts for the 
        purpose of reestablishing health and safety revenue priorities. 
           (e) Notwithstanding section 124.14, subdivision 7, the 
        commissioner of education, with the approval of the commissioner 
        of finance, may transfer a projected excess in the appropriation 
        for health and safety aid for fiscal year 1995 to the 
        appropriation for debt service aid for the same fiscal year.  
        The projected excess amount and, the projected deficit in the 
        appropriation for debt service aid, and the amount of the 
        transfer must be determined and the transfer made as of November 
        1, 1994 1993.  The projections and the amount of the transfer 
        may be revised to reflect corrected data as of June 1, 1994.  
        The transfer must be made as of July 1, 1994.  The amount of the 
        transfer is limited to the lesser of the projected excess in the 
        health and safety appropriation or the projected deficit in the 
        appropriation for debt service aid.  Any transfer must be 
        reported immediately to the education committees of the house of 
        representatives and senate. 
           Sec. 3.  [WAIVER OF RULES AND STATUTES.] 
           Upon approval of the commissioner of education, for the 
        1993-1994 school year only, independent school district No. 191, 
        Burnsville, may provide a shorter school day than required by 
        Minnesota Rules, part 3500.1200, and may offer fewer 
        instructional days and maintain school for fewer required days 
        than specified by Minnesota Statutes, sections 120.101, 
        subdivision 5b, and 124.19, and is not subject to a general 
        education aid reduction. 
           Sec. 4.  [APPROPRIATIONS.] 
           $500,000 is appropriated from the general fund to the 
        commissioner of education in fiscal year 1995 to make a grant to 
        independent school district No. 191, Burnsville. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective the day following final 
        enactment. 
                                   ARTICLE 15 
                               TECHNICAL COLLEGES 
           Section 1.  [TECHNICAL COLLEGE FUNDING SHIFT.] 
           $24,000,000 is appropriated in fiscal year 1995 from the 
        general fund to the state board of technical colleges to 
        eliminate the funding shift under Minnesota Statutes 1992, 
        section 136C.36, and to provide 100 percent funding in the year 
        for which it is appropriated. 
           Presented to the governor May 9, 1994 
           Signed by the governor May 10, 1994, 6:50 p.m.