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                            CHAPTER 412-H.F.No. 2156 
                  An act relating to education; prekindergarten through 
                  grade 12; providing for general education; 
                  transportation; special programs; community education; 
                  facilities; organization and cooperation; education 
                  excellence; other education programs and financing; 
                  education policy provisions; libraries; state 
                  agencies; technology; conforming amendments; 
                  appropriating money; amending Minnesota Statutes 1994, 
                  sections 120.06, subdivision 1; 120.08, subdivision 3; 
                  120.17, subdivision 9, and by adding a subdivision; 
                  120.1701, subdivision 10; 120.73, subdivision 1; 
                  121.8355, subdivision 1, and by adding a subdivision; 
                  121.906; 121.914, subdivision 1; 121.915; 122.32, 
                  subdivision 1; 122.535, subdivision 6; 122.895, 
                  subdivision 2; 123.35, subdivision 19a, and by adding 
                  a subdivision; 123.351, subdivision 10; 123.3514, 
                  subdivision 9; 123.37, subdivision 1a; 123.38, 
                  subdivisions 2 and 2b; 123.39, subdivision 8b; 
                  123.932, subdivisions 1b, 1c, 1e, and 11; 123.933, as 
                  amended; 123.935, subdivisions 2 and 7; 124.09; 
                  124.17, subdivision 1e, and by adding subdivisions; 
                  124.195, subdivision 8; 124.239, subdivision 4; 
                  124.2711, subdivision 6; 124.2713, subdivision 10; 
                  124.273, by adding subdivisions; 124.276; 124.311, 
                  subdivisions 1, 2, 3, 4, 5, and 7; 124.573, 
                  subdivision 3; 124.86, subdivisions 1 and 2; 124.91, 
                  subdivision 1, and by adding a subdivision; 124.912, 
                  subdivision 6; 124.916, subdivision 4; 124.95, 
                  subdivision 1; 124A.02, subdivision 25; 124A.029, 
                  subdivision 4; 124A.03, subdivisions 2b, 3b, and by 
                  adding a subdivision; 124A.0311, subdivision 3; 
                  124A.035, subdivision 4; 124A.036, by adding a 
                  subdivision; 124A.22, by adding a subdivision; 
                  124A.28, subdivision 1; 124A.291; 124C.45, by adding a 
                  subdivision; 125.05, subdivision 1a, and by adding a 
                  subdivision; 125.09, subdivision 4; 125.1385, 
                  subdivision 1; 125.185, subdivision 4; 125.60, 
                  subdivision 2; 125.611, subdivision 1; 125.70; 
                  125.701; 125.703; 125.704; 125.705, subdivision 1; 
                  126.151, subdivision 2; 126.22, subdivision 1; 
                  126.531, subdivision 3; 126.83; 128D.11, subdivisions 
                  3, 5, 8, and 10; 134.34, by adding a subdivision; 
                  136D.23, subdivision 1; 136D.83, subdivision 1; 
                  144.4165; 169.4504, by adding a subdivision; 256.736, 
                  subdivision 11; 466.01, subdivision 1; and 471.59, 
                  subdivision 11; Minnesota Statutes 1995 Supplement, 
                  sections 13.46, subdivision 2; 43A.316, subdivision 2; 
                  65B.132; 115A.072, subdivision 1; 120.064, subdivision 
                  9; 120.1045, subdivision 1, and by adding a 
                  subdivision; 120.17, subdivisions 3a, 3b, and 6; 
                  120.1701, subdivision 20; 120.181; 120.74, subdivision 
                  1; 121.11, subdivision 7c; 121.15, subdivision 1; 
                  121.904, subdivision 4c; 121.911, subdivision 5; 
                  121.917, subdivision 4; 121.935, subdivision 1a; 
                  123.3514, subdivisions 6 and 6b; 123.7991, subdivision 
                  2; 124.155, subdivision 2; 124.17, subdivision 1; 
                  124.195, subdivision 12; 124.223, subdivision 4; 
                  124.225, subdivisions 8l, 14, 16, and 17; 124.227; 
                  124.243, subdivision 2; 124.2445; 124.2455; 124.248, 
                  subdivisions 1, 1a, 2, and 3; 124.273, subdivisions 1c 
                  and 1d; 124.314, subdivision 2; 124.3201, subdivisions 
                  1, 2, 3, 5, and by adding subdivisions; 124.3202; 
                  124.323, subdivisions 1 and 2; 124.574, subdivisions 
                  2f and 2g; 124.71, subdivision 2; 124.912, subdivision 
                  1; 124.918, subdivision 2; 124.961; 124A.03, 
                  subdivision 2; 124A.0311, subdivision 2; 124A.22, 
                  subdivisions 2a, 10, and 13b; 124A.23, subdivision 4; 
                  124C.74, subdivisions 2 and 3; 125.05, subdivision 1; 
                  126.151, subdivision 1; 126.22, subdivisions 2, 3, 5, 
                  and 8; 126.23; 126.70, subdivision 1; 128B.03, 
                  subdivision 3a; 134.46; 169.01, subdivision 6; 
                  237.065; 325G.203, subdivision 11; and 631.40, 
                  subdivision 1a; Laws 1993, chapter 224, article 1, 
                  section 34, subdivisions 2 and 3; article 12, sections 
                  39, as amended; and 41, as amended; Laws 1995, First 
                  Special Session chapter 3, article 1, sections 61; and 
                  63, subdivision 2; article 2, section 53; article 3, 
                  section 19, subdivisions 7 and 15; article 4, section 
                  29, subdivision 10; article 5, section 20, 
                  subdivisions 5, 6, and 7; article 6, section 17, 
                  subdivisions 2, 4, and by adding subdivisions; article 
                  7, section 5, subdivision 4; article 8, sections 25, 
                  subdivisions 2 and 18; and 27; article 11, sections 
                  21, subdivision 2; 22; and 23; article 12, sections 8, 
                  subdivision 1; and 12, subdivision 7; article 14, 
                  section 5; article 15, sections 25; and 26, 
                  subdivisions 7, 8, and 10; proposing coding for new 
                  law in Minnesota Statutes, chapters 120; 121; 123; 
                  124; 124C; 125; 126; and 136D; repealing Minnesota 
                  Statutes 1994, sections 121.11, subdivision 15; and 
                  136D.75; Minnesota Statutes 1995 Supplement, sections 
                  120.1045, subdivision 3; and 126A.02, subdivision 2; 
                  Laws 1993, chapter 224, article 1, section 34, 
                  subdivision 1; Minnesota Rules, parts 8700.7700; 
                  8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 
                  8750.9400; 8750.9500; 8750.9600; and 8750.9700. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                               GENERAL EDUCATION 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        13.46, subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
        a statute specifically provides a different classification, data 
        on individuals collected, maintained, used, or disseminated by 
        the welfare system is private data on individuals, and shall not 
        be disclosed except:  
           (1) pursuant to section 13.05; 
           (2) pursuant to court order; 
           (3) pursuant to a statute specifically authorizing access 
        to the private data; 
           (4) to an agent of the welfare system, including a law 
        enforcement person, attorney, or investigator acting for it in 
        the investigation or prosecution of a criminal or civil 
        proceeding relating to the administration of a program; 
           (5) to personnel of the welfare system who require the data 
        to determine eligibility, amount of assistance, and the need to 
        provide services of additional programs to the individual; 
           (6) to administer federal funds or programs; 
           (7) between personnel of the welfare system working in the 
        same program; 
           (8) the amounts of cash public assistance and relief paid 
        to welfare recipients in this state, including their names, 
        social security numbers, income, addresses, and other data as 
        required, upon request by the department of revenue to 
        administer the property tax refund law, supplemental housing 
        allowance, early refund of refundable tax credits, and the 
        income tax.  "Refundable tax credits" means the dependent care 
        credit under section 290.067, the Minnesota working family 
        credit under section 290.0671, the property tax refund under 
        section 290A.04, and, if the required federal waiver or waivers 
        are granted, the federal earned income tax credit under section 
        32 of the Internal Revenue Code; 
           (9) to the Minnesota department of economic security for 
        the purpose of monitoring the eligibility of the data subject 
        for reemployment insurance, for any employment or training 
        program administered, supervised, or certified by that agency, 
        or for the purpose of administering any rehabilitation program, 
        whether alone or in conjunction with the welfare system, and to 
        verify receipt of energy assistance for the telephone assistance 
        plan; 
           (10) to appropriate parties in connection with an emergency 
        if knowledge of the information is necessary to protect the 
        health or safety of the individual or other individuals or 
        persons; 
           (11) data maintained by residential programs as defined in 
        section 245A.02 may be disclosed to the protection and advocacy 
        system established in this state pursuant to Part C of Public 
        Law Number 98-527 to protect the legal and human rights of 
        persons with mental retardation or other related conditions who 
        live in residential facilities for these persons if the 
        protection and advocacy system receives a complaint by or on 
        behalf of that person and the person does not have a legal 
        guardian or the state or a designee of the state is the legal 
        guardian of the person; 
           (12) to the county medical examiner or the county coroner 
        for identifying or locating relatives or friends of a deceased 
        person; 
           (13) data on a child support obligor who makes payments to 
        the public agency may be disclosed to the higher education 
        services office to the extent necessary to determine eligibility 
        under section 136A.121, subdivision 2, clause (5); 
           (14) participant social security numbers and names 
        collected by the telephone assistance program may be disclosed 
        to the department of revenue to conduct an electronic data match 
        with the property tax refund database to determine eligibility 
        under section 237.70, subdivision 4a; 
           (15) the current address of a recipient of aid to families 
        with dependent children may be disclosed to law enforcement 
        officers who provide the name and social security number of the 
        recipient and satisfactorily demonstrate that:  (i) the 
        recipient is a fugitive felon, including the grounds for this 
        determination; (ii) the location or apprehension of the felon is 
        within the law enforcement officer's official duties; and (iii) 
        the request is made in writing and in the proper exercise of 
        those duties; 
           (16) the current address of a recipient of general 
        assistance, work readiness, or general assistance medical care 
        may be disclosed to probation officers and corrections agents 
        who are supervising the recipient, and to law enforcement 
        officers who are investigating the recipient in connection with 
        a felony level offense; 
           (17) information obtained from food stamp applicant or 
        recipient households may be disclosed to local, state, or 
        federal law enforcement officials, upon their written request, 
        for the purpose of investigating an alleged violation of the 
        food stamp act, in accordance with Code of Federal Regulations, 
        title 7, section 272.1(c); 
           (18) data on a child support obligor who is in arrears may 
        be disclosed for purposes of publishing the data pursuant to 
        section 518.575; 
           (19) data on child support payments made by a child support 
        obligor may be disclosed to the obligee; or 
           (20) data in the work reporting system may be disclosed 
        under section 256.998, subdivision 7.; or 
           (21) to the Minnesota department of children, families, and 
        learning for the purpose of matching department of children, 
        families, and learning student records to public assistance 
        records to determine students eligible for free and reduced 
        price meals, meal supplements, and free milk pursuant to United 
        States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
        and 1773; to produce accurate numbers of students receiving aid 
        to families with dependent children as required by section 
        124.175; and to allocate federal and state resources that are 
        distributed based on income of the student's family. 
           (b) Information on persons who have been treated for drug 
        or alcohol abuse may only be disclosed in accordance with the 
        requirements of Code of Federal Regulations, title 42, sections 
        2.1 to 2.67. 
           (c) Data provided to law enforcement agencies under 
        paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
        investigative data and are confidential or protected nonpublic 
        while the investigation is active.  The data are private after 
        the investigation becomes inactive under section 13.82, 
        subdivision 5, paragraph (a) or (b). 
           (d) Mental health data shall be treated as provided in 
        subdivisions 7, 8, and 9, but is not subject to the access 
        provisions of subdivision 10, paragraph (b). 
           Sec. 2.  Minnesota Statutes 1994, section 121.906, is 
        amended to read: 
           121.906 [EXPENDITURES; REPORTING.] 
           Subdivision 1.  [RECOGNITION.] School district expenditures 
        shall be recognized and reported on the district books of 
        account in accordance with this section. 
           There shall be fiscal year-end recognition of expenditures 
        and the related offsetting liabilities recorded in each fund in 
        accordance with the uniform financial accounting and reporting 
        standards for Minnesota school districts.  Encumbrances 
        outstanding at the end of the fiscal year do not constitute 
        expenditures or liabilities.  
           Deviations from the principles set forth in this section 
        subdivision shall be evaluated and explained in footnotes to 
        audited financial statements. 
           Subd. 2.  [ACCOUNTING.] Expenditures for any legal purpose 
        of the school district not accounted for elsewhere shall be 
        accounted for in the general fund. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        121.911, subdivision 5, is amended to read: 
           Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
        the commissioner of children, families, and learning, a district 
        may incur a deficit in the capital expenditure fund reserve for 
        operating capital account for a period not to exceed three years 
        to provide money for capital projects.  A description of the 
        project and a financial plan to recover the deficit shall be 
        approved by the commissioner prior to the initiation of the 
        project.  
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        121.917, subdivision 4, is amended to read: 
           Subd. 4.  (1) If the net negative undesignated 
        unappropriated operating fund balance in all the funds of a 
        school district, other than statutory operating debt pursuant to 
        section 121.914, capital expenditure, building construction, 
        debt service, trust and agency, and post-secondary vocational 
        technical education funds as defined in section 124A.02, 
        subdivision 25, calculated in accordance with the uniform 
        financial accounting and reporting standards for Minnesota 
        school districts, as of June 30 each year, is more than 2-1/2 
        percent of the year's expenditure amount, the district shall, 
        prior to September 15 January 31 of the next fiscal year, submit 
        a special operating plan to reduce the district's deficit 
        expenditures to the commissioner of children, families, and 
        learning for approval.  The commissioner may also require the 
        district to provide evidence that the district meets and will 
        continue to meet all of the curriculum requirements of the state 
        board. 
           Notwithstanding any other law to the contrary, a district 
        submitting a special operating plan to the commissioner under 
        this clause which is disapproved by the commissioner shall not 
        receive any aid pursuant to chapters 124 and 124A until a 
        special operating plan of the district is so approved. 
           (2) A district shall receive aids pending the approval of 
        its special operating plan under clause (1).  A district which 
        complies with its approved operating plan shall receive aids as 
        long as the district continues to comply with the approved 
        operating plan. 
           Sec. 5.  Minnesota Statutes 1994, section 124.09, is 
        amended to read: 
           124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.] 
           The school endowment fund shall be apportioned semiannually 
        by the commissioner, on the first Monday in March and October 
        September in each year, to districts whose schools have been in 
        session at least nine months.  The apportionment shall be in 
        proportion to the number of pupils in average daily membership 
        during the preceding year; provided, that apportionment shall 
        not be paid to a district for pupils for whom tuition is 
        received by the district. 
           Sec. 6.  Minnesota Statutes 1995 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 sections 
        124.32, 124.3201, and 124.3202; 
           (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) school district cooperation aid authorized in section 
        124.2727; 
           (12) assurance of mastery aid according to section 124.311; 
           (13) homestead and agricultural credit aid, disparity 
        credit and aid, and changes to credits for prior year 
        adjustments according to section 273.1398, subdivisions 2, 3, 4, 
        and 7; 
           (14) attached machinery aid authorized in section 273.138, 
        subdivision 3; 
           (15) alternative delivery aid authorized in section 
        124.322; 
           (16) special education equalization aid authorized in 
        section 124.321; 
           (17) special education excess cost aid authorized in 
        section 124.323; 
           (18) learning readiness aid authorized in section 124.2615; 
        and 
           (19) cooperation-combination aid authorized in section 
        124.2725; and 
           (20) district cooperation revenue aid authorized in section 
        124.2727. 
           (b) The commissioner of children, families, and learning 
        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. 7.  Minnesota Statutes 1994, section 124.17, 
        subdivision 1e, is amended to read: 
           Subd. 1e.  [AFDC PUPIL COUNTS.] AFDC pupil counts and 
        average daily membership for subdivisions 1b and 1d shall be 
        determined according to this subdivision: 
           (a) For districts where the number of pupils from families 
        receiving aid to families with dependent children has increased 
        over the preceding year for each of the two previous years, the 
        number of pupils enrolled in the district from families 
        receiving aid to families with dependent children shall be those 
        counted on October 1 of the previous school year.  The average 
        daily membership used shall be from the previous school year. 
           (b) For districts that do not meet the requirement of 
        paragraph (a), the number of pupils enrolled in the district 
        from families receiving aid to families with dependent children 
        shall be the average number of pupils on October 1 of the second 
        previous school year and October 1 of the previous school year.  
        The average daily membership used shall be the average number 
        enrolled in the previous school year and the second previous 
        school year. 
           (c) Notwithstanding paragraphs (a) and (b), for charter 
        schools in the first three years of operation, the number of 
        pupils enrolled from families receiving AFDC shall be those 
        counted on October 1 of the current school year.  The average 
        daily membership used shall be from the current school year.  
           Sec. 8.  Minnesota Statutes 1994, section 124.17, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
        enrolled in a learning year program according to section 
        121.585, an area learning center according to sections 124C.45 
        and 124C.46, or an alternative program approved by the 
        commissioner, for more than 1,020 hours in a school year for a 
        secondary student and for more than 935 hours in a school year 
        for an elementary student, that pupil may be counted as more 
        than one pupil in average daily membership.  The amount in 
        excess of one pupil must be determined by the ratio of the 
        number of hours of instruction provided to that pupil in excess 
        of 1,020 hours to 1,020 for a secondary pupil and of 935 hours 
        to 935 for an elementary pupil.  Hours that occur after the 
        close of the instructional year in June shall be attributable to 
        the following fiscal year. 
           (b)(i) To receive general education revenue for a pupil in 
        an alternative program that has an independent study component, 
        a school district must meet the requirements in this paragraph.  
        The school district must develop with the pupil a continual 
        learning plan for the pupil.  A district must allow a minor 
        pupil's parent or guardian to participate in developing the 
        plan, if the parent or guardian wants to participate.  The plan 
        must identify the learning experiences and expected outcomes 
        needed for satisfactory credit for the year and for graduation.  
        The plan must be updated each year. 
           (ii) General education revenue for a pupil in an approved 
        alternative program without an independent study component must 
        be prorated for a pupil participating for less than a full year, 
        or its equivalent. 
           (iii) General education revenue for a pupil in an approved 
        alternative program that has an independent study component must 
        be paid for each hour of teacher contact time and each hour of 
        independent study time completed toward a credit necessary for 
        graduation.  Average daily membership for a pupil shall equal 
        the number of hours of teacher contact time and independent 
        study time divided by 1,020. 
           (iv) For an alternative program having an independent study 
        component, the commissioner shall require a description of the 
        courses in the program, the kinds of independent study involved, 
        the expected learning outcomes of the courses, and the means of 
        measuring student performance against the expected outcomes. 
           Sec. 9.  Minnesota Statutes 1994, section 124.195, 
        subdivision 8, is amended to read: 
           Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
        hundred percent of the aid for the last fiscal year must be paid 
        for the following aids: special education special pupil aid 
        according to section 124.32, subdivision 6; special education 
        summer school aid, according to section 124.32, subdivision 10, 
        for the previous fiscal year must be paid in the current year. 
           Sec. 10.  Minnesota Statutes 1995 Supplement, section 
        124.195, subdivision 12, is amended to read: 
           Subd. 12.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
        CHANGE.] (a) The department of children, families, and learning 
        shall reduce general education aid or any other aid paid in a 
        fiscal year directly to school districts, intermediate school 
        districts, education districts, education cooperative service 
        units, special education cooperatives, secondary vocational 
        cooperatives, regional management information centers, or 
        another.  Any district or cooperative unit providing elementary 
        or secondary education services that is prohibited from 
        receiving direct state aids by section 124.193 or 124.32, 
        subdivision 12, is exempt from this reduction.  The reduction 
        shall equal the following percent of salaries paid in a fiscal 
        year by the entity to members of the teachers retirement 
        association established in chapter 354.  However, salaries paid 
        to members of the association who are employed by a technical 
        college shall be excluded from this calculation: 
           (1) in fiscal year 1991, 0.84 percent, 
           (2) in fiscal year 1992 and later years, the greater of 
           (i) zero, or 
           (ii) 4.48 percent less the additional employer contribution 
        rate established under section 354.42, subdivision 5.  
           (b) In fiscal year 1991, this reduction is estimated to 
        equal $14,260,000. 
           Sec. 11.  [124.2613] [FIRST-GRADE PREPAREDNESS PROGRAM.] 
           Subdivision 1.  [PURPOSE.] The purposes of the first-grade 
        preparedness program are to ensure that every child has the 
        opportunity before first grade to develop the skills and 
        abilities necessary to read and succeed in school and to reduce 
        the underlying causes that create a need for compensatory 
        revenue. 
           Subd. 2.  [QUALIFYING DISTRICT.] A school district may 
        receive first-grade preparedness revenue for qualifying school 
        sites if, consistent with subdivision 5, the school board 
        approves a resolution requiring the district to provide services 
        to all children located in a qualifying school site attendance 
        area. 
           Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
        shall rank all school sites with kindergarten programs that do 
        not exclusively serve students under section 120.17.  The 
        ranking must be from highest to lowest based on the site's free 
        and reduced lunch count as a percent of the fall enrollment 
        using the preceding October 1 enrollment data.  For each school 
        site, the percentage used to calculate the ranking must be the 
        greater of (1) the percent of the fall kindergarten enrollment 
        receiving free and reduced lunch, or (2) the percent of the 
        total fall enrollment receiving free and reduced lunch.  The 
        list of ranked sites must be separated into the following 
        geographic areas:  Minneapolis district, St. Paul district, 
        suburban Twin Cities districts in the seven-county metropolitan 
        area, and school districts in greater Minnesota. 
           (b) The commissioner shall establish a process and 
        timelines to qualify school sites for the next school year.  
        School sites must be qualified in each geographic area from the 
        list of ranked sites until the estimated revenue available for 
        this program has been allocated.  The total estimated revenue of 
        $3,500,000 must be distributed to qualified school sites in each 
        geographic area as follows:  25 percent for Minneapolis sites, 
        25 percent for St. Paul sites, 25 percent for suburban Twin 
        Cities sites, and 25 percent for greater Minnesota. 
           Subd. 4.  [PROGRAM.] A qualifying school site must develop 
        its first-grade preparedness program in collaboration with other 
        providers of school readiness and child development services.  A 
        school site must either offer a full-day kindergarten program to 
        participating children who are five years of age or older for 
        the full school day every day or a half-day program for 
        participating children who are four years old.  Full-day and 
        half-day kindergarten program providers must ensure that the 
        program they provide supplements existing school readiness and 
        child development programs and complements the services provided 
        with compensatory revenue.  Where possible, individuals 
        receiving assistance under a family assistance plan can meet the 
        work activity requirement of the plan by participating in a 
        first-grade preparedness program as a volunteer. 
           Subd. 5.  [EXTENDED DAY REQUIREMENTS.] The board of a 
        qualifying school district must develop and approve a plan to 
        provide extended day services to serve as many children as 
        possible.  To accept children whose families participate in 
        child care assistance programs under section 256H.03 or 256H.05, 
        and to meet the requirements of section 245A.03, subdivision 2, 
        the board must formally approve the first-grade preparedness 
        program.  All revenue received under subdivision 6 must be 
        allocated to the qualifying school sites within the district. 
           Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
        district is eligible for first-grade preparedness revenue equal 
        to the basic formula allowance for that year times the number of 
        pupil units calculated according to paragraph (b) in each 
        qualifying school site.  If the first-grade preparedness revenue 
        is insufficient to fully fund the formula amounts, the 
        commissioner shall prorate the revenue provided to each 
        qualifying school site. 
           (b) A pupil enrolled in a half-day first-grade preparedness 
        program under this section is counted as .53 pupil units.  A 
        pupil enrolled in a full-day first-grade preparedness program 
        under this section is counted as a kindergarten pupil under 
        section 124.17, subdivision 1, plus an additional .53 pupil 
        units. 
           (c) This revenue must supplement and not replace 
        compensatory revenue that the district uses for the same or 
        similar purposes under chapter 124A. 
           Subd. 7.  [EVALUATION.] The commissioner of children, 
        families, and learning, in consultation with representatives of 
        the state board of teaching, early childhood teachers, 
        elementary school classroom teachers, and teacher educators, 
        shall develop an evaluation for qualifying school sites to use 
        in documenting results.  The evaluation must use empirical and 
        qualitative methods to gather information on the following:  
        progress towards ensuring that every child entering the first 
        grade has the knowledge and skills necessary to succeed in 
        school; student readiness for first grade; an assessment of 
        enrolling students by their teacher, and measures of parental 
        satisfaction and parental involvement.  The commissioner shall 
        assist a school site with its evaluation at the request of the 
        site. 
           Subd. 8.  [EXPIRATION.] This section applies for fiscal 
        years 1997, 1998, and 1999, and expires June 30, 1999. 
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        124.918, subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
        30 October 7 of each year each district shall notify the 
        commissioner of children, families, and learning of the proposed 
        levies in compliance with the levy limitations of this chapter 
        and chapters 124A, 124B, and 136D.  By January 15 of each year 
        each district shall notify the commissioner of children, 
        families, and learning of the final levies certified.  The 
        commissioner of children, families, and learning shall prescribe 
        the form of these notifications and may request any additional 
        information necessary to compute certified levy amounts. 
           Sec. 13.  Minnesota Statutes 1994, section 124A.02, 
        subdivision 25, is amended 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, reemployment insurance, maintenance levy reduction, 
        operating capital, disabled access, health and safety, and 
        encumbrances, computed as of June 30 each year. 
           Sec. 14.  Minnesota Statutes 1994, section 124A.029, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PER PUPIL REVENUE OPTION CONVERSION.] 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.  (a) The department shall convert a each district's 
        referendum revenue authority for fiscal year 1995 2002 and later 
        years to an allowance per pupil unit 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 2001 by the 
        district's 1993-1994 2000-2001 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, and the question on the referendum ballot did 
        not provide for an expiration date, the authority shall expire 
        according to section 124A.0311. 
           (b) The referendum allowance reduction shall be applied 
        first to the authority with the earliest expiration date. 
           Sec. 15.  Minnesota Statutes 1995 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 one or two calendar years 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 a schedule, determined by the board, of increased revenue 
        per actual pupil units that differs from year to year over the 
        number of years for which the increased revenue is authorized.  
        If the ballot contains a schedule showing different amounts, it 
        shall also indicate the estimated referendum tax rate as a 
        percent of market value for the amount specified for the first 
        year and for the maximum amount specified in the schedule.  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 ten, for 
        which the referendum authorization shall apply.  The notice 
        required under section 275.60 may be modified to read, in cases 
        of renewing existing levies: 
           "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
           FOR A PROPERTY TAX INCREASE." 
           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 in the first year, 
        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."  However, in cases of renewing existing levies, the 
        notice may include the following statement:  "Passage of this 
        referendum may 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 children, families, and 
        learning.  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 
        children, families, and learning of the results of the 
        referendum. 
           (g) Except for a referendum held under subdivision 2b, 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. 16.  Minnesota Statutes 1994, section 124A.03, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  [REFERENDUM DATE.] In addition to the referenda 
        allowed in subdivision 2, clause (a), the commissioner may 
        authorize a referendum for a different day.  
           (a) The commissioner may grant authority to a district to 
        hold a referendum on a different day if the district is in 
        statutory operating debt and has an approved plan or has 
        received an extension from the department to file a plan to 
        eliminate the statutory operating debt.  
           (b) The commissioner may grant authority for a district to 
        hold a referendum on a different day if:  (1) the district will 
        conduct a bond election under chapter 475 on that same day; and 
        (2) the proceeds of the referendum will provide only additional 
        operating revenue necessitated by the facility for which bonding 
        authority is sought.  The commissioner may only grant authority 
        under this paragraph if the district demonstrates to the 
        commissioner's satisfaction that the district's ability to 
        operate the new facility will be significantly affected if the 
        operating referendum is not conducted until the November general 
        election.  Authority under this paragraph expires November 30, 
        1998. 
           (c) The commissioner must approve, deny, or modify each 
        district's request for a referendum levy on a different day 
        within 60 days of receiving the request from a district. 
           Sec. 17.  Minnesota Statutes 1994, section 124A.03, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [FISCAL YEAR 1997 REFERENDUM ALLOWANCE 
        REDUCTION.] For fiscal year 1997, a district's referendum 
        allowance under subdivision 1c is reduced by the amounts 
        calculated in paragraphs (a), (b), (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. 18.  Minnesota Statutes 1994, section 124A.03, is 
        amended by adding a subdivision to read: 
           Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
        year 1998 and later, a district's referendum allowance for 
        referendum authority under subdivision 1c is reduced as provided 
        in this subdivision.  
           (a) For referendum revenue authority approved before June 
        1, 1996, and effective for fiscal year 1997, the reduction 
        equals the amount of the reduction computed for fiscal year 1997 
        under subdivision 3b.  
           (b) For referendum revenue authority approved before June 
        1, 1996, and effective beginning in fiscal year 1998, the 
        reduction equals the amount of the reduction computed for fiscal 
        year 1998 under subdivision 3b.  
           (c) For referendum revenue authority approved after May 31, 
        1996, there is no reduction.  
           (d) For districts with more than one referendum authority, 
        the reduction shall be computed separately for each authority.  
        The reduction shall be applied first to authorities levied 
        against tax capacity, and then to authorities levied against 
        referendum market value.  For districts with more than one 
        authority levied against net tax capacity or against referendum 
        market value, the referendum allowance reduction shall be 
        applied first to the authority with the earliest expiration date.
           (e) For a newly reorganized district created after July 1, 
        1996, the referendum revenue reduction equals the lesser of the 
        amount calculated for the combined district, 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. 19.  Minnesota Statutes 1995 Supplement, section 
        124A.0311, subdivision 2, is amended to read: 
           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 
        referendum authority may be converted from net tax capacity to 
        referendum 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 the referendum authority is levied against 
        referendum market value.  The board must notify the commissioner 
        of children, families, and learning 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. 
           Sec. 20.  Minnesota Statutes 1994, section 124A.0311, 
        subdivision 3, is amended to read: 
           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 referendum 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 referendum market value.  
        If the full amount of the referendum is reauthorized 
        on referendum market value prior to taxes payable in 1998, the 
        referendum may extend for ten years.  If the referendum becomes 
        fully reauthorized on referendum market value for a later year, 
        the referendum shall not extend for more than the maximum number 
        of years allowed under subdivision 2. 
           Sec. 21.  Minnesota Statutes 1994, section 124A.035, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
        amount of money apportioned to a school district for that year 
        pursuant to section 124.10, subdivision 2, excluding any 
        district where the general education levy is determined 
        according to section 124A.23, subdivision 3, shall be deducted 
        from the general education aid earned by that district for the 
        same year or from aid earned from other state sources.  
           Sec. 22.  Minnesota Statutes 1994, section 124A.036, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
        for districts must be adjusted for each pupil attending a 
        charter school under section 120.064.  The adjustments must be 
        made according to this subdivision. 
           (b) General education aid paid to a resident district must 
        be reduced by an amount equal to the general education revenue 
        exclusive of compensatory revenue. 
           (c) General education aid paid to a district in which a 
        charter school not providing transportation according to section 
        120.064, subdivision 15, is located shall be increased by an 
        amount equal to the product of:  (1) the sum of $170, plus the 
        transportation sparsity allowance for the district, plus the 
        transportation transition allowance for the district; times (2) 
        the pupil units attributable to the pupil.  
           (d) If the amount of the reduction to be made from the 
        general education aid of the resident district is greater than 
        the amount of general education aid otherwise due the district, 
        the excess reduction must be made from other state aids due the 
        district. 
           Sec. 23.  Minnesota Statutes 1995 Supplement, section 
        124A.22, subdivision 10, is amended to read: 
           Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
        fiscal year 1997 and thereafter, total operating capital revenue 
        for a district equals the amount determined under paragraph (b), 
        (c), (d), (e), or (f), plus $68 times the actual pupil units for 
        the school year.  The revenue must be placed in a reserved 
        account in the general fund and may only be used according to 
        subdivision 11. 
           (b) For fiscal years 1996 and later, capital revenue for a 
        district equals $100 times the district's maintenance cost index 
        times its actual pupil units for the school year. 
           (c) For 1996 and later fiscal years, the previous formula 
        revenue for a district equals $128 times its actual pupil units 
        for fiscal year 1995. 
           (d) Notwithstanding paragraph (b), for fiscal year 1996, 
        the revenue for each district equals 25 percent of the amount 
        determined in paragraph (b) plus 75 percent of the previous 
        formula revenue. 
           (e) Notwithstanding paragraph (b), for fiscal year 1997, 
        the revenue for each district equals 50 percent of the amount 
        determined in paragraph (b) plus 50 percent of the previous 
        formula revenue. 
           (f) Notwithstanding paragraph (b), for fiscal year 1998, 
        the revenue for each district equals 75 percent of the amount 
        determined in paragraph (b) plus 25 percent of the previous 
        formula revenue. 
           (g) The revenue in paragraph (b) for a district that 
        operates a program under section 121.585, is increased by an 
        amount equal to $15 times the number of actual pupil units at 
        the site where the program is implemented. 
           Sec. 24.  Minnesota Statutes 1994, section 124A.22, is 
        amended by adding a subdivision to read: 
           Subd. 11a.  [USES OF REVENUE.] Except as otherwise 
        prohibited by law, a district may spend general fund money for 
        capital purposes. 
           Sec. 25.  Minnesota Statutes 1995 Supplement, section 
        124A.22, subdivision 13b, is amended to read: 
           Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
        transportation transition allowance for fiscal year 1997 equals 
        the result of the following computation: 
           (1) if the result in subdivision 13a, paragraph (a), clause 
        (iii), for fiscal year 1997 is less than the fiscal year 1996 
        base allowance, the transportation transition allowance equals 
        the fiscal year 1996 base allowance minus the result in section 
        124A.22, subdivision 13a, paragraph (a), clause (iii). 
           (2) if the result in subdivision 13a, paragraph (b), for 
        fiscal year 1997 is greater than the fiscal year 1996 base 
        allowance and less than 110 percent of the fiscal year 1996 base 
        allowance, the transportation transition allowance equals zero. 
           (3) if the result in subdivision 13a, paragraph (b), for 
        fiscal year 1997 is greater than 110 percent of the fiscal year 
        1996 base allowance, the transportation transition allowance 
        equals 110 percent of the fiscal year 1996 base allowance minus 
        the result in subdivision 13a, paragraph (a), clause (iii). 
           (b) A district's transportation transition allowance for 
        fiscal year 1998 equals the result of the following: 
           (1) if the result in subdivision 13a, paragraph (a), clause 
        (iii), for fiscal year 1998 is less than the fiscal year 1996 
        base allowance, the transportation transition allowance equals 
        the fiscal year 1996 base allowance minus the result in 
        subdivision 13a, paragraph (a), clause (iii); or 
           (2) if the result in subdivision 13a, paragraph (a), clause 
        (iii), for fiscal year 1998 is greater than or equal to the 
        fiscal year 1996 base allowance, the transportation transition 
        allowance equals zero. 
           (c) For fiscal years 1997 and 1998, a district's training 
        and experience transition allowance is equal to the training and 
        experience revenue the district would have received under 
        Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
        by the actual pupil units for fiscal year 1997 minus $130.  For 
        fiscal year 1999 and later, a district's training and experience 
        transition allowance equals zero.  
           If the training and experience transition allowance is less 
        than zero, the reduction shall be determined according to the 
        following schedule: 
           (i) for fiscal year 1997, the reduction is equal to .9 
        times the amount initially determined; 
           (ii) for fiscal year 1998, the reduction is equal to .75 
        times the amount initially determined; 
           (iii) for fiscal year 1999, the reduction is equal to .50 
        times the amount initially determined; 
           (iv) for fiscal year 2000, the reduction is equal to .25 
        times the amount initially determined; and 
           (v) for fiscal year 2001 and thereafter, the transition 
        allowance shall not be less than zero.  
           (c) (d) A district's transition allowance for fiscal year 
        1997 and thereafter is equal to the sum of its transportation 
        transition allowance and its training and experience transition 
        allowance. 
           Sec. 26.  Minnesota Statutes 1995 Supplement, section 
        124A.23, subdivision 4, is amended to read: 
           Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
        education aid is the sum of the following amounts:  
           (1) the product of (i) the difference between the general 
        education revenue, excluding transition revenue and supplemental 
        revenue, and the general education levy, times (ii) the ratio of 
        the actual amount levied to the permitted levy; 
           (2) transition aid according to section 124A.22, 
        subdivision 13e; 
           (3) supplemental aid according to section 124.214, 
        subdivision 2; 
           (4) shared time aid according to section 124A.02, 
        subdivision 21; and 
           (5) referendum aid according to section 124A.03. 
           Sec. 27.  Minnesota Statutes 1994, section 124A.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
        education revenue under section 124A.22, subdivision 3, may be 
        used to provide eligible services to eligible pupils according 
        to section 124.311, subdivisions 3 and 4.  It also may must be 
        used to meet the educational needs of pupils whose educational 
        achievement is below the level that is appropriate for pupils of 
        their age.  These needs may be met by providing at least some of 
        the following: 
           (1) direct instructional services under the assurance of 
        mastery program according to section 124.311; 
           (2) remedial instruction in reading, language arts, and 
        mathematics to improve the achievement level of these pupils; 
           (2) (3) additional teachers and teacher aides to provide 
        more individualized instruction to these pupils; 
           (3) (4) summer programs that enable these pupils to improve 
        their achievement or that reemphasize material taught during the 
        regular school year; 
           (4) (5) in-service education for teachers, teacher aides, 
        principals, and other personnel to improve their ability to 
        recognize these pupils and provide appropriate responses to the 
        pupils' needs; 
           (5) (6) for instructional material for these pupils 
        including:  textbooks, workbooks, periodicals, pamphlets, 
        photographs, reproductions, filmstrips, prepared slides, 
        prerecorded video programs, sound recordings, desk charts, 
        games, study prints and pictures, desk maps, models, learning 
        kits, blocks and cubes, flashcards, instructional computer 
        software programs, pencils, pens, crayons, notebooks, 
        duplicating fluids, and papers; 
           (6) (7) programs to reduce truancy, encourage completion of 
        high school, enhance self-concept, provide health services, 
        provide nutrition services, provide a safe and secure learning 
        environment, provide coordination for pupils receiving services 
        from other governmental agencies, provide psychological services 
        to determine the level of social, emotional, cognitive, and 
        intellectual development, and provide counseling services, 
        guidance services, and social work services; and 
           (7) (8) bilingual programs, bicultural programs, and 
        programs for pupils of limited English proficiency; 
           (9) all day kindergarten; 
           (10) extended school day and extended school year programs; 
        and 
           (11) other methods to increase achievement, as needed.  
           Sec. 28.  Laws 1993, chapter 224, article 1, section 34, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AID ADJUSTMENT.] For fiscal year 1994 1996 only, 
        the department of education children, families, and learning 
        shall include in the general education aid calculation for 
        independent school district No. 504, Slayton, or its successor 
        district, and independent school district No. 918, Chandler-Lake 
        Wilson, or its successor district, the sum of the amounts by 
        which the district's general education aid was reduced for 
        fiscal years 1992 and 1993 year 1994 under Minnesota Statutes, 
        section 124A.26. 
           Sec. 29.  Laws 1993, chapter 224, article 1, section 34, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LEVY ADJUSTMENT.] For 1993 1996 taxes payable in 
        1994 1997 only, independent school district No. 504, Slayton, or 
        its successor district, and independent school district No. 918, 
        Chandler-Lake Wilson, or its successor district, may levy an 
        amount not to exceed the sum of the levy reductions for 
        fiscal years 1992 and 1993 year 1994 resulting from the general 
        education revenue fund balance reduction under Minnesota 
        Statutes, section 124A.26. 
           Sec. 30.  Laws 1995, First Special Session chapter 3, 
        article 1, section 63, subdivision 2, is amended to read: 
           Subd. 2.  [REVENUE FOR FISCAL YEAR 1997.] Minnesota 
        Statutes 1994, sections 121.912, subdivision 8; 124.243; 
        124.244; 124A.26; and 126.019, are repealed effective for 
        revenue for fiscal year 1997. 
           Sec. 31.  Laws 1995, First Special Session, chapter 3, 
        article 15, section 25, is amended to read: 
           Sec. 25.  [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 
           (a) For the computation of homestead and agricultural aid 
        for taxes payable in 1996, the commissioner of revenue shall 
        permanently reduce a school district's homestead and 
        agricultural aid by an amount equal to the lesser of:  (1) 25 
        percent of the amount of the district's homestead and 
        agricultural aid for calendar year 1995; or (2) an amount equal 
        to one percent times the district's adjusted net tax capacity 
        for assessment year 1994. 
           (b) Prior to For the computation of homestead and 
        agricultural aid for taxes payable in 1997, the commissioner of 
        revenue shall permanently reduce the school district's homestead 
        and agricultural aid by an amount equal to the lesser of:  
        (1) 50 25 percent of the amount of the district's homestead and 
        agricultural aid for calendar year 1995; or (2) an amount equal 
        to one percent times the district's adjusted net tax capacity 
        for assessment year 1994. 
           (c) Prior to For the computation of homestead and 
        agricultural aid for taxes payable in 1998, the commissioner of 
        revenue shall permanently reduce a school district's homestead 
        and agricultural aid by an amount equal to the lesser of:  
        (1) 75 25 percent of the amount of the district's homestead and 
        agricultural aid for calendar year 1995; or (2) an amount equal 
        to one percent times the district's adjusted net tax capacity 
        for assessment year 1994. 
           (d) Prior to For the computation of homestead and 
        agricultural aid for taxes payable in 1999, the commissioner of 
        revenue shall permanently reduce a school district's homestead 
        and agricultural aid by an amount equal to the lesser of:  
        (1) 25 percent of the amount of the district's homestead and 
        agricultural aid for calendar year 1995; or (2) an amount equal 
        to one percent times the district's adjusted net tax capacity 
        for assessment year 1994. 
           (e) Prior to For the computation of homestead and 
        agricultural aid for taxes payable in 2000 and later years, the 
        commissioner of revenue shall permanently reduce a school 
        district's homestead and agricultural aid each year by an amount 
        equal to the lesser of:  (1) any remaining amount of the 
        district's homestead and agricultural aid; or (2) an amount 
        equal to one percent times the district's adjusted net tax 
        capacity for assessment year 1994. 
           Sec. 32.  [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; 
        DISSOLUTION.] 
           Effective July 1, 1996, the transportation fund and the 
        capital expenditure fund of each school district or other unit 
        reporting under Minnesota Statutes, section 121.908, is 
        dissolved.  The June 30, 1996, balance of the unreserved 
        transportation fund shall be transferred to the general fund 
        unreserved balance.  The June 30, 1996, balance of the reserved 
        for bus purchase account shall be transferred to the general 
        fund reserved for bus purchase account.  The June 30, 1996, 
        balance of the capital expenditure facilities account and 
        capital expenditure equipment account shall be transferred to 
        the general fund reserved for operating capital account.  The 
        June 30, 1996, balance of the reserved for health and safety 
        account shall be transferred to the general fund reserved for 
        health and safety account.  The June 30, 1996, balance of the 
        reserved for disabled accessibility account shall be transferred 
        to the general fund reserved for disabled accessibility account. 
        Effective July 1, 1996, all revenues and expenditures formerly 
        accounted for in the capital expenditure fund and the 
        transportation fund shall be accounted for in the general fund. 
           Sec. 33.  [REFERENDUM AUTHORITY; PARK RAPIDS.] 
           Subdivision 1.  [REVENUE.] Notwithstanding the reduction 
        required by Minnesota Statutes, section 124A.03, subdivision 3b, 
        the referendum revenue allowance for independent school district 
        No. 309, Park Rapids, is $315 per pupil unit.  This referendum 
        authorization is available for the number of years specified on 
        the district's referendum ballot held during June 1995. 
           Subd. 2.  [LEVY RECLASSIFICATION.] Independent school 
        district No. 309, Park Rapids, may reclassify as payable 1996 
        referendum levy other payable 1996 levies.  The amount 
        reclassified may not exceed the difference between the levy 
        authority authorized in subdivision 1 and the amount of 
        referendum levy certified by the district for taxes payable in 
        1996.  Any reclassified levy is not subject to the market value 
        requirement in Minnesota Statutes, section 124A.03, subdivision 
        2a. 
           Sec. 34.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT.] The sums indicated in this 
        section are appropriated from the general fund to the department 
        of children, families, and learning for the fiscal years 
        designated. 
           Subd. 2.  [FIRST-GRADE PREPAREDNESS PROGRAM.] 
             $3,500,000     .....     1997 
           For grants for first-grade preparedness programs under 
        section 11.  These grants represent 100 percent of the 
        appropriations entitlement for 1997. 
           Subd. 3.  [PEQUOT LAKES.] 
             $   79,000     .....     1997 
           For a grant to independent school district No. 186, Pequot 
        Lakes, for the purpose of reducing the district's 1996 payable 
        1997 property taxes.  The commissioner must reduce the 
        district's 1996 payable 1997 property taxes by this amount.* 
        (The preceding subdivision was vetoed by the governor.) 
           Sec. 35.  [REPEALER.] 
           Laws 1993, chapter 224, article 1, section 34, subdivision 
        1, is repealed.  Section 8 is repealed July 1, 1999. 
           Sec. 36.  [EFFECTIVE DATE.] 
           Sections 1, 6, 7, 9, 10, 16, 20, 21, 28, 29, and 32 are 
        effective the day following final enactment. 
           Section 4 is effective for fiscal year 1996 and thereafter. 
           Section 33 is effective for fiscal year 1997 and later 
        years. 
                                   ARTICLE 2 
                                 TRANSPORTATION 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        120.17, subdivision 6, is amended to read: 
           Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
        The responsibility for special instruction and services for a 
        child with a disability temporarily placed in another district 
        for care and treatment shall be determined in the following 
        manner: 
           (a) The school district of residence of a child shall be 
        the district in which the child's parent resides, if living, or 
        the child's guardian, or the district designated by the 
        commissioner of children, families, and learning if neither 
        parent nor guardian is living within the state. 
           (b) When a child is temporarily placed for care and 
        treatment in a day program located in another district and the 
        child continues to live within the district of residence during 
        the care and treatment, the district of residence is responsible 
        for providing transportation and an appropriate educational 
        program for the child.  The district may provide the educational 
        program at a school within the district of residence, at the 
        child's residence, or in the district in which the day treatment 
        center is located by paying tuition to that district. 
           (c) When a child is temporarily placed in a residential 
        program for care and treatment, the nonresident district in 
        which the child is placed is responsible for providing an 
        appropriate educational program for the child and necessary 
        transportation within the district while the child is attending 
        the educational program; and shall bill the district of the 
        child's residence for the actual cost of providing the program, 
        as outlined in subdivision 4, except that the board, lodging, 
        and treatment costs incurred in behalf of a child with a 
        disability placed outside of the school district of residence by 
        the commissioner of human services or the commissioner of 
        corrections or their agents, for reasons other than for making 
        provision for the child's special educational needs shall not 
        become the responsibility of either the district providing the 
        instruction or the district of the child's residence. 
           (d) The district of residence shall pay tuition and other 
        program costs, not including transportation costs, to the 
        district providing the instruction and services.  The district 
        of residence may claim general education aid for the child as 
        provided by law.  Transportation costs shall be paid by the 
        district responsible for providing the transportation and the 
        state shall pay transportation aid to that district. 
           Sec. 2.  Minnesota Statutes 1994, section 120.17, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
        who is eligible for special instruction and services pursuant to 
        this section shall be denied provision of this instruction and 
        service on a shared time basis because of attendance at a 
        nonpublic school defined in section 123.932, subdivision 3.  If 
        a resident pupil with a disability attends a nonpublic school 
        located within the district of residence, the district shall 
        provide necessary transportation for that pupil within the 
        district between the nonpublic school and the educational 
        facility where special instruction and services are provided on 
        a shared time basis.  If a resident pupil with a disability 
        attends a nonpublic school located in a another district 
        contiguous to the district of residence and if no agreement 
        exists pursuant to section 124A.034, subdivision 1 or 1a, for 
        the provision of special instruction and services on a shared 
        time basis to that pupil by the district of attendance and where 
        the special instruction and services are provided within the 
        district of residence, the district of residence shall provide 
        necessary transportation for that pupil between the boundary of 
        the district of residence and the educational facility where the 
        special instruction and services are provided within the 
        district of residence.  The district of residence may provide 
        necessary transportation for that pupil between its boundary and 
        the nonpublic school attended, but the nonpublic school shall 
        pay the cost of transportation provided outside the district 
        boundary. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        120.181, is amended to read: 
           120.181 [PLACEMENT OF NONHANDICAPPED CHILDREN WITHOUT 
        DISABILITIES; EDUCATION AND TRANSPORTATION.] 
           The responsibility for providing instruction and 
        transportation for a pupil without a disability who has a 
        short-term or temporary physical or emotional illness or 
        disability, as determined by the standards of the state board, 
        and who is temporarily placed for care and treatment for that 
        illness or disability, shall be determined as provided in this 
        section.  
           (a) The school district of residence of the pupil shall be 
        the district in which the pupil's parent or guardian resides or 
        the district designated by the commissioner of children, 
        families, and learning if neither parent nor guardian is living 
        within the state.  
           (b) Prior to the placement of a pupil for care and 
        treatment, the district of residence shall be notified and 
        provided an opportunity to participate in the placement 
        decision.  When an immediate emergency placement is necessary 
        and time does not permit resident district participation in the 
        placement decision, the district in which the pupil is 
        temporarily placed, if different from the district of residence, 
        shall notify the district of residence of the emergency 
        placement within 15 days of the placement.  
           (c) When a pupil without a disability is temporarily placed 
        for care and treatment in a day program and the pupil continues 
        to live within the district of residence during the care and 
        treatment, the district of residence shall provide instruction 
        and necessary transportation for the pupil.  The district may 
        provide the instruction at a school within the district of 
        residence, at the pupil's residence, or in the case of a 
        placement outside of the resident district, in the district in 
        which the day treatment program is located by paying tuition to 
        that district.  The district of placement may contract with a 
        facility to provide instruction by teachers licensed by the 
        state board of teaching.  
           (d) When a pupil without a disability is temporarily placed 
        in a residential program for care and treatment, the district in 
        which the pupil is placed shall provide instruction for the 
        pupil and necessary transportation within that district while 
        the pupil is receiving instruction, and in the case of a 
        placement outside of the district of residence, the nonresident 
        district shall bill the district of residence for the actual 
        cost of providing the instruction for the regular school year 
        and for summer school, excluding transportation costs.  When a 
        pupil without a disability is temporarily placed in a 
        residential program outside the district of residence, the 
        administrator of the court placing the pupil shall send timely 
        written notice of the placement to the district of residence.  
        The district of placement may contract with a residential 
        facility to provide instruction by teachers licensed by the 
        state board of teaching. 
           (e) The district of residence shall include the pupil in 
        its residence count of pupil units and pay tuition as provided 
        in section 124.18 to the district providing the instruction.  
        Transportation costs shall be paid by the district providing the 
        transportation and the state shall pay transportation aid to 
        that district.  For purposes of computing state transportation 
        aid, pupils governed by this subdivision shall be included in 
        the handicapped disabled transportation category.  
           Sec. 4.  Minnesota Statutes 1994, section 120.73, 
        subdivision 1, is amended to read: 
           Subdivision 1.  A school board is authorized to require 
        payment of fees in the following areas: 
           (a) in any program where the resultant product, in excess 
        of minimum requirements and at the pupil's option, becomes the 
        personal property of the pupil; 
           (b) admission fees or charges for extra curricular 
        activities, where attendance is optional; 
           (c) a security deposit for the return of materials, 
        supplies, or equipment; 
           (d) personal physical education and athletic equipment and 
        apparel, although any pupil may personally provide it if it 
        meets reasonable requirements and standards relating to health 
        and safety established by the school board; 
           (e) items of personal use or products which a student has 
        an option to purchase such as student publications, class rings, 
        annuals, and graduation announcements; 
           (f) fees specifically permitted by any other statute, 
        including but not limited to section 171.04, subdivision 1, 
        clause (1); 
           (g) field trips considered supplementary to a district 
        educational program; 
           (h) any authorized voluntary student health and accident 
        benefit plan; 
           (i) for the use of musical instruments owned or rented by 
        the district, a reasonable rental fee not to exceed either the 
        rental cost to the district or the annual depreciation plus the 
        actual annual maintenance cost for each instrument; 
           (j) transportation of pupils to and from extra curricular 
        activities conducted at locations other than school, where 
        attendance is optional; 
           (k) transportation of pupils to and from school for which 
        aid for fiscal year 1996 is not authorized under Minnesota 
        Statutes 1994, section 124.223, subdivision 1, and for which 
        levy for fiscal year 1996 is not authorized under Minnesota 
        Statutes 1994, section 124.226, subdivision 5, if a district 
        charging fees for transportation of pupils establishes 
        guidelines for that transportation to ensure that no pupil is 
        denied transportation solely because of inability to pay; 
           (l) motorcycle classroom education courses conducted 
        outside of regular school hours; provided the charge shall not 
        exceed the actual cost of these courses to the school district; 
           (m) transportation to and from post-secondary institutions 
        for pupils enrolled under the post-secondary enrollment options 
        program under section 123.39, subdivision 16.  Fees collected 
        for this service must be reasonable and shall be used to reduce 
        the cost of operating the route.  Families who qualify for 
        mileage reimbursement under section 123.3514, subdivision 8, may 
        use their state mileage reimbursement to pay this fee.  If no 
        fee is charged, districts shall allocate costs based on the 
        number of pupils riding the route. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        120.74, subdivision 1, is amended to read: 
           Subdivision 1.  (a) A school board is not authorized to 
        charge fees in the following areas: 
           (1) textbooks, workbooks, art materials, laboratory 
        supplies, towels; 
           (2) supplies necessary for participation in any 
        instructional course except as authorized in sections 120.73 and 
        120.75; 
           (3) field trips which are required as a part of a basic 
        education program or course; 
           (4) graduation caps, gowns, any specific form of dress 
        necessary for any educational program, and diplomas; 
           (5) instructional costs for necessary school personnel 
        employed in any course or educational program required for 
        graduation; 
           (6) library books required to be utilized for any 
        educational course or program; 
           (7) admission fees, dues, or fees for any activity the 
        pupil is required to attend; 
           (8) any admission or examination cost for any required 
        educational course or program; 
           (9) locker rentals; 
           (10) transportation of pupils (i) for which state 
        transportation aid for fiscal year 1996 is authorized pursuant 
        to Minnesota Statutes 1994, section 124.223 or (ii) for which a 
        levy for fiscal year 1996 is authorized under Minnesota Statutes 
        1994, section 124.226, subdivision 5. 
           (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
        school board may charge fees for textbooks, workbooks, and 
        library books, lost or destroyed by students.  The board must 
        annually notify parents or guardians and students about its 
        policy to charge a fee under this paragraph. 
           Sec. 6.  Minnesota Statutes 1994, section 123.39, 
        subdivision 8b, is amended to read: 
           Subd. 8b.  School districts may use school district owned 
        or contractor operated school buses to provide transportation 
        along regular school bus routes on a space available basis for 
        senior citizens who are 62 years of age or older any person, 
        provided that this use of a bus does not interfere with the 
        transportation of pupils to and from school or other authorized 
        transportation of pupils.  In all cases, the total additional 
        cost of providing these services, as determined by sound 
        accounting procedures, shall be paid by charges made against 
        those using these services or some third-party payor.  In no 
        case shall the additional cost of this transportation be paid by 
        the school district. 
           The provisions of section 65B.47, subdivision 4, shall be 
        applicable to senior citizens any person being transported 
        pursuant to this subdivision. 
           Sec. 7.  Minnesota Statutes 1995 Supplement, section 
        123.7991, subdivision 2, is amended to read: 
           Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
        shall provide public school pupils enrolled in grades 
        kindergarten through 10 with age-appropriate 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 and not a 
        right; 
           (2) district policies for student conduct and school bus 
        safety; 
           (3) appropriate conduct while on the school bus; 
           (4) the danger zones surrounding a school bus; 
           (5) procedures for safely boarding and leaving a school 
        bus; 
           (6) procedures for safe street or road crossing; and 
           (7) school bus evacuation and other emergency procedures. 
           (b) Each nonpublic school located within the district shall 
        provide all nonpublic school pupils enrolled in grades 
        kindergarten through 10 who are transported by school bus at 
        public expense and attend school within the district's 
        boundaries with training as required in paragraph (a).  The 
        school district shall make a bus available for the practical 
        training if the district transports the nonpublic students.  
        Each nonpublic school shall provide the instruction. 
           (c) Student school bus safety training shall commence 
        during school bus safety week.  All students enrolled in grades 
        kindergarten through 3 who are transported by school bus and are 
        enrolled during the first or second week of school must 
        demonstrate achievement of the school bus safety training 
        competencies by the end of the third week of school.  All 
        students enrolled in grades 4 through 10 who are transported by 
        school bus and are enrolled during the first or second week of 
        school must demonstrate achievement of the competencies by the 
        end of the sixth week of school.  Students enrolled in grades 
        kindergarten through 10 who enroll in a school after the second 
        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 four weeks of the first 
        day of attendance.  The pupil transportation safety director in 
        each district must certify to the commissioner of children, 
        families, and learning annually that all students transported by 
        school bus within the district 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.  The 
        principal or other chief administrator of each nonpublic school 
        must certify annually to the public transportation safety 
        director of the district in which the school is located that all 
        of the school's students transported by school bus at public 
        expense have received training.  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, or to a student who attends a 
        nonpublic school that fails to provide training as required by 
        this subdivision. 
           (d) A school district and a nonpublic school with students 
        transported by school bus at public expense must, to the extent 
        possible, provide kindergarten pupils with bus safety training 
        before the first day of school. 
           (e) A school district and a nonpublic school with students 
        transported by school bus at public expense must also provide 
        student safety education for bicycling and pedestrian safety, 
        for students enrolled in grades kindergarten through 5. 
           (f) A school district and a nonpublic school with students 
        transported by school bus at public expense must make reasonable 
        accommodations for the school bus, bicycle, and pedestrian 
        safety training of pupils known to speak English as a second 
        language and pupils with disabilities. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        124.223, subdivision 4, is amended to read: 
           Subd. 4.  [PUPILS WITH DISABILITIES.] School districts 
        may shall provide 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 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 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. 
           Sec. 9.  Minnesota Statutes 1995 Supplement, section 
        124.225, subdivision 8l, is amended to read: 
           Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
        that enrolls nonresident pupils in programs under sections 
        120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
        126.22, may shall provide authorized transportation to the pupil 
        within the attendance area for the school that the pupil 
        attends.  The resident district need not provide or pay for 
        transportation between the pupil's residence and the district's 
        border. 
           Sec. 10.  Minnesota Statutes 1995 Supplement, section 
        124.225, subdivision 14, is amended to read: 
           Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
        district's special programs transportation revenue for the 
        1996-1997 and later school years equals the sum of: 
           (a) the district's actual cost in the base year for 
        transportation services for children with disabilities under 
        section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of 
        the district's average daily membership for the current school 
        year to the district's average daily membership for the base 
        year; plus 
           (b) the greater of zero or 80 percent of the difference 
        between: 
           (1) the district's actual cost in the current year for 
        transportation services for children with disabilities under 
        section 124.223, subdivisions 4, 5, 7, and 8; and 
           (2) the amount computed in paragraph (a). 
           Sec. 11.  Minnesota Statutes 1995 Supplement, section 
        124.225, subdivision 16, is amended to read: 
           Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A 
        district's nonpublic pupil transportation revenue for the 
        1996-1997 and later school years for transportation services for 
        nonpublic school pupils according to sections 123.39, 123.76 to 
        123.78, 124.223, and 124.226, equals the sum of the amounts 
        computed in paragraphs (b) and (c).  This revenue does not limit 
        the obligation to transport pupils under sections 123.76 to 
        123.79. 
           (b) For regular and excess transportation according to 
        section 124.225, subdivision 1, paragraph (c), clauses (1) and 
        (3), an amount equal to the product of: 
           (1) the district's actual expenditure per pupil transported 
        in the regular and excess transportation categories during the 
        second preceding school year; times 
           (2) the number of nonpublic school pupils residing in the 
        district who receive regular or excess transportation service or 
        reimbursement for the current school year; times 
           (3) the ratio of the formula allowance pursuant to section 
        124A.22, subdivision 2, for the current school year to the 
        formula allowance pursuant to section 124A.22, subdivision 2, 
        for the second preceding school year. 
           (c) For nonregular transportation according to section 
        124.225, subdivision 1, paragraph (c), clause (2), excluding 
        transportation services for children with disabilities under 
        section 124.223, subdivisions 4, 5, 7, and 8, and late activity 
        transportation according to section 124.226, subdivision 9, an 
        amount equal to the product of: 
           (1) the district's actual expenditure for nonregular and 
        late activity transportation for nonpublic school pupils during 
        the second preceding school year; times 
           (2) the ratio of the formula allowance pursuant to section 
        124A.22, subdivision 2, for the current school year to the 
        formula allowance pursuant to section 124A.22, subdivision 2, 
        for the second preceding school year. 
           (d) Notwithstanding the amount of the formula allowance for 
        fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
        the commissioner shall use the amount of the formula allowance 
        less $300 in determining the nonpublic pupil transportation 
        revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        124.225, subdivision 17, is amended to read: 
           Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) A 
        district's targeted needs transportation aid is the difference 
        between its targeted needs transportation revenue under 
        subdivision 13 and its targeted needs transportation revenue 
        levy under section 124.226, subdivision 10. 
           (b) If a district does not levy the entire amount 
        permitted, aid must be reduced in proportion to the actual 
        amount levied. 
           Sec. 13.  Minnesota Statutes 1995 Supplement, section 
        124.227, is amended to read: 
           124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION GRANTS.] 
           (a) A district that provides transportation of pupils 
        between resident and nonresident districts to and from an 
        interdistrict program for desegregation or integration purposes 
        may apply to the commissioner of children, families, and 
        learning for a grant to cover the additional costs of 
        transportation.  
           (b) A district in the metropolitan area may apply to the 
        commissioner for a grant to cover the costs of transporting 
        pupils who are enrolled under section 120.062 if the enrollment 
        of the student in the nonresident district contributes to 
        desegregation or integration purposes.  The commissioner must 
        develop the form and manner of applications, the criteria to be 
        used to determine when transportation is for desegregation or 
        integration purposes, and the accounting procedure to be used to 
        determine excess costs.  In determining the grant amount, the 
        commissioner must consider other revenue received by the 
        district for transportation for desegregation or integration 
        purposes. 
           (c) Grants may be awarded under paragraph (b) only if 
        grants awarded under paragraph (a) have been fully funded. 
           Sec. 14.  Minnesota Statutes 1995 Supplement, 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, a transit bus providing services as defined in 
        section 174.22, subdivision 7, or a vehicle otherwise qualifying 
        as a type III vehicle under paragraph (5), when the vehicle is 
        properly registered and insured and being driven by an employee 
        or agent of a school district for nonscheduled transportation.  
        A school bus may be type A, type B, type C, or type D, or type 
        III as follows:  
           (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 designed 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. 
           (5) Type III school buses and type III Head Start 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" 
        and "type III Head Start bus" must not be outwardly equipped and 
        identified as a type A, B, C, or D school bus or type A, B, C, 
        or D Head Start bus. 
           Sec. 15.  Minnesota Statutes 1994, section 169.4504, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [AISLE WIDTH.] All school buses equipped with a 
        power lift shall provide at least a 12-inch aisle leading from 
        wheelchair position to at least one emergency door and the lift 
        area. 
           Sec. 16.  Minnesota Statutes 1995 Supplement, section 
        631.40, subdivision 1a, is amended to read: 
           Subd. 1a.  [CERTIFIED COPY OF DISQUALIFYING OFFENSE 
        CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 
        person is convicted of committing a disqualifying offense, as 
        defined in section 171.3215, subdivision 1, a gross misdemeanor, 
        a fourth moving violation within a three-year period the 
        previous three years, or a violation of section 169.121 or 
        169.129, or a similar statute or ordinance from another state, 
        the court shall 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. 17.  Laws 1995, First Special Session chapter 3, 
        article 2, section 53, is amended to read: 
           Sec. 53.  [EFFECTIVE DATE.] 
           Sections 6 to 9 and 29 to 49 are effective the day 
        following final enactment. 
           Section 12 is effective beginning with taxes payable in 
        1996 for fiscal year 1997. 
           Sec. 18.  [APPROPRIATION.] 
           $150,000 is appropriated to the St. Paul school district to 
        contract with the Metropolitan Council Transit Organization for 
        a one-year pilot program during the 1996-1997 school year to 
        transport students to and from Arlington High School.  The MCTO 
        and the St. Paul school district shall submit a joint 
        preliminary report by March 1, 1997, to the chairs of the 
        education committees of the senate and the house of 
        representatives, the chair of the metropolitan and local 
        government committee of the senate, and the chair of the local 
        government and metropolitan affairs committee of the house of 
        representatives.  The MCTO may not charge the district any more 
        than $150,000 for the school year.* (The preceding section was 
        vetoed by the governor.) 
           Sec. 19.  [EFFECTIVE DATE.] 
           Sections 8 to 13 are effective the day following final 
        enactment. 
                                   ARTICLE 3 
                                SPECIAL PROGRAMS 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        120.17, subdivision 3a, is amended to read: 
           Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
        shall ensure that: 
           (1) all students with disabilities are provided the special 
        instruction and services which are appropriate to their needs.  
        Where the individual education plan team has determined 
        appropriate goals and objectives based on the student's needs, 
        including the extent to which the student can be included in the 
        least restrictive environment, and where there are essentially 
        equivalent and effective instruction, related services, or 
        assistive technology devices available to meet the student's 
        needs, cost to the school district may be among the factors 
        considered by the team in choosing how to provide the 
        appropriate services, instruction, or devices that are to be 
        made part of the student's individual education plan.  The 
        student's needs and the special education instruction and 
        services to be provided shall be agreed upon through the 
        development of an individual education plan.  The plan shall 
        address the student's need to develop skills to live and work as 
        independently as possible within the community.  By grade 9 or 
        age 14, the plan shall address the student's needs for 
        transition from secondary services to post-secondary education 
        and training, employment, community participation, recreation, 
        and leisure and home living.  The plan must include a statement 
        of the needed transition services, including a statement of the 
        interagency responsibilities or linkages or both before 
        secondary services are concluded; 
           (2) children with a disability under age five and their 
        families are provided special instruction and services 
        appropriate to the child's level of functioning and needs; 
           (3) children with a disability and their parents or 
        guardians are guaranteed procedural safeguards and the right to 
        participate in decisions involving identification, assessment 
        including assistive technology assessment, and educational 
        placement of children with a disability; 
           (4) to the maximum extent appropriate, children with a 
        disability, including those in public or private institutions or 
        other care facilities, are educated with children who are not 
        disabled, and that special classes, separate schooling, or other 
        removal of children with a disability from the regular 
        educational environment occurs only when and to the extent that 
        the nature or severity of the disability is such that education 
        in regular classes with the use of supplementary services cannot 
        be achieved satisfactorily; 
           (5) in accordance with recognized professional standards, 
        testing and evaluation materials, and procedures utilized for 
        the purposes of classification and placement of children with a 
        disability are selected and administered so as not to be 
        racially or culturally discriminatory; and 
           (6) the rights of the child are protected when the parents 
        or guardians are not known or not available, or the child is a 
        ward of the state. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        120.17, subdivision 3b, is amended to read: 
           Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
        utilize at least the following procedures for decisions 
        involving identification, assessment, and educational placement 
        of children with a disability: 
           (a) Parents and guardians shall receive prior written 
        notice of:  
           (1) any proposed formal educational assessment or proposed 
        denial of a formal educational assessment of their child; 
           (2) a proposed placement of their child in, transfer from 
        or to, or denial of placement in a special education program; or 
           (3) the proposed provision, addition, denial or removal of 
        special education services for their child; 
           (b) The district shall not proceed with the initial formal 
        assessment of a child, the initial placement of a child in a 
        special education program, or the initial provision of special 
        education services for a child without the prior written consent 
        of the child's parent or guardian.  The refusal of a parent or 
        guardian to consent may be overridden by the decision in a 
        hearing held pursuant to clause (e) at the district's 
        initiative; 
           (c) Parents and guardians shall have an opportunity to meet 
        with appropriate district staff in at least one conciliation 
        conference, mediation, or other method of alternative dispute 
        resolution that the parties agree to, if they object to any 
        proposal of which they are notified pursuant to clause (a).  The 
        conciliation process or other form of alternative dispute 
        resolution shall not be used to deny or delay a parent or 
        guardian's right to a due process hearing.  If the parent or 
        guardian refuses efforts by the district to conciliate the 
        dispute with the school district, the requirement of an 
        opportunity for conciliation or other alternative dispute 
        resolution shall be deemed to be satisfied.  Notwithstanding 
        other law, in any proceeding following a conciliation 
        conference, the school district must not offer a conciliation 
        conference memorandum into evidence, except for any portions 
        that describe the district's final proposed offer of service.  
        Otherwise, with respect to forms of dispute resolution, 
        mediation, or conciliation, Minnesota Rule of Evidence 408 
        applies.  The department of children, families, and learning may 
        reimburse the districts or directly pay the costs of lay 
        advocates, not to exceed $150 per dispute, used in conjunction 
        with alternative dispute resolution. 
           (d) The commissioner shall establish a mediation process to 
        assist parents, school districts, or other parties to resolve 
        disputes arising out of the identification, assessment, or 
        educational placement of children with a disability.  The 
        mediation process must be offered as an informal alternative to 
        the due process hearing provided under clause (e), but must not 
        be used to deny or postpone the opportunity of a parent or 
        guardian to obtain a due process hearing. 
           (e) Parents, guardians, and the district shall have an 
        opportunity to obtain an impartial due process hearing initiated 
        and conducted by and in the school district responsible for 
        assuring that an appropriate program is provided in accordance 
        with state board rules, if the parent or guardian continues to 
        object to:  
           (1) a proposed formal educational assessment or proposed 
        denial of a formal educational assessment of their child; 
           (2) the proposed placement of their child in, or transfer 
        of their child to a special education program; 
           (3) the proposed denial of placement of their child in a 
        special education program or the transfer of their child from a 
        special education program; 
           (4) the proposed provision or addition of special education 
        services for their child; or 
           (5) the proposed denial or removal of special education 
        services for their child. 
           Within five business days after the request for a hearing, 
        or as directed by the hearing officer, the objecting party shall 
        provide the other party with a brief written statement of 
        particulars of the objection, the reasons for the objection, and 
        the specific remedies sought.  The other party shall provide the 
        objecting party with a written response to the statement of 
        objections within five business days of receipt of the statement.
           The hearing shall take place before an impartial hearing 
        officer mutually agreed to by the school board and the parent or 
        guardian.  If the school board and the parent or guardian are 
        unable to agree on a Within four business days of the receipt of 
        the request for the hearing, if the parties have not agreed on 
        the hearing officer, the school board shall request the 
        commissioner to appoint a hearing officer.  The school board 
        shall include with request the name of the person requesting the 
        hearing, the name of the student, the attorneys involved, if 
        any, and the date the hearing request was received.  The hearing 
        officer shall not be a school board member or employee of the 
        school district where the child resides or of the child's school 
        district of residence, an employee of any other public agency 
        involved in the education or care of the child, or any person 
        with a personal or professional interest which would conflict 
        with the person's objectivity at the hearing.  A person who 
        otherwise qualifies as a hearing officer is not an employee of 
        the district solely because the person is paid by the district 
        to serve as a hearing officer.  If the hearing officer requests 
        an independent educational assessment of a child, the cost of 
        the assessment shall be at district expense.  The proceedings 
        shall be recorded and preserved, at the expense of the school 
        district, pending ultimate disposition of the action. 
           (f) The decision of the hearing officer pursuant to clause 
        (e) shall be rendered not more than 45 calendar days from the 
        date of the receipt of the request for the hearing, except that 
        hearing officers are encouraged to accelerate the timeline to 30 
        days for children birth through two whose needs change rapidly 
        and require quick resolution of complaints.  A hearing officer 
        may not grant specific extensions of time beyond the 45-day 
        period at the request of either party unless requested by either 
        party for good cause shown on the record.  The decision of the 
        hearing officer shall be binding on all parties unless appealed 
        to the hearing review officer commissioner by the parent,; 
        guardian, or the; school board of the district where the child 
        resides pursuant to clause (g); and also in the case of children 
        birth through two, by the county board. 
           The local decision shall: 
           (1) be in writing; 
           (2) state the controlling facts upon which the decision is 
        made in sufficient detail to apprise the parties and the hearing 
        review officer of the basis and reason for the decision; and 
           (3) state whether the special education program or special 
        education services appropriate to the child's needs can be 
        reasonably provided within the resources available to the 
        responsible district or districts; 
           (4) state the amount and source of any additional district 
        expenditure necessary to implement the decision; and 
           (5) be based on the standards set forth in subdivision 3a 
        and the rules of the state board. 
           (g) Any local decision issued pursuant to clauses (e) and 
        (f) may be appealed to the hearing review officer commissioner 
        within 30 calendar days of receipt of that written decision, by 
        the parent, guardian, or the school board of the district 
        responsible for assuring that an appropriate program is provided 
        in accordance with state board rules.  The appealing party shall 
        note the specific parts of the hearing decision being appealed. 
           If the decision is appealed, a written transcript of the 
        hearing shall be made by the school district and shall be 
        accessible provided by the district to the parties involved and 
        the hearing review officer within five calendar days of the 
        filing of the appeal.  The hearing review officer shall conduct 
        an appellate review and issue a final independent decision based 
        on an impartial review of the local decision and the entire 
        record within 30 calendar days after the filing of the appeal.  
        However, the hearing review officer shall seek additional 
        evidence if necessary and may afford the parties an opportunity 
        for written or oral argument; provided any hearing held to seek 
        additional evidence shall be an impartial due process hearing 
        but shall be deemed not to be a contested case hearing for 
        purposes of chapter 14.  The hearing review officer may grant 
        specific extensions of time beyond the 30-day period at the 
        request of any party for good cause shown on the record. 
           The final decision shall: 
           (1) be in writing; 
           (2) include findings and conclusions; and 
           (3) be based upon the standards set forth in subdivision 3a 
        and in the rules of the state board. 
           (h) The decision of the hearing review officer shall be 
        final unless appealed by the parent or guardian or school board 
        to the Minnesota court of appeals or federal district court as 
        provided by federal law.  The State judicial review shall be in 
        accordance with chapter 14.  
           (i) The commissioner of children, families, and learning 
        shall select an individual who has the qualifications enumerated 
        in this paragraph to serve as the hearing review officer: 
           (1) the individual must be knowledgeable and impartial; 
           (2) the individual must not have a personal interest in or 
        specific involvement with the student who is a party to the 
        hearing; 
           (3) the individual must not have been employed as an 
        administrator by the district that is a party to the hearing; 
           (4) the individual must not have been involved in the 
        selection of the administrators of the district that is a party 
        to the hearing; 
           (5) the individual must not have a personal, economic, or 
        professional interest in the outcome of the hearing other than 
        the proper administration of the federal and state laws, rules, 
        and policies; 
           (6) the individual must not have substantial involvement in 
        the development of a state or local policy or procedures that 
        are challenged in the appeal; and 
           (7) the individual is not a current employee or board 
        member of a Minnesota public school district, education 
        district, intermediate unit or regional education agency, the 
        department of children, families, and learning, the state board 
        of education, or a parent advocacy organization or group; and 
           (8) the individual is not a current employee or board 
        member of a disability advocacy organization or group.  
           (j) In all appeals, the parent or guardian of the pupil 
        with a disability or the district that is a party to the hearing 
        may challenge the impartiality or competence of the proposed 
        hearing review officer by applying to the hearing review officer.
           (k) Pending the completion of proceedings pursuant to this 
        subdivision, unless the district and the parent or guardian of 
        the child agree otherwise, the child shall remain in the child's 
        current educational placement and shall not be denied initial 
        admission to school. 
           (l) The child's school district of residence, a resident 
        district, and providing district shall receive notice of and may 
        be a party to any hearings or appeals under this subdivision. 
           (m) A school district is not liable for harmless technical 
        violations of this subdivision or rules implementing this 
        subdivision if the school district can demonstrate on a 
        case-by-case basis that the violations did not harm the 
        student's educational progress or the parent or guardian's right 
        to notice, participation, or due process. 
           (n) Within ten calendar days after appointment, the hearing 
        officer shall schedule and hold a prehearing conference.  At 
        that conference, or later, the hearing officer may take any 
        appropriate action that a court might take under Rule 16 of 
        Minnesota Rules of Civil Procedure including, but not limited 
        to, scheduling, jurisdiction, and listing witnesses including 
        expert witnesses. 
           (o) A hearing officer or hearing review officer appointed 
        under this subdivision shall be deemed to be an employee of the 
        state under section 3.732 for the purposes of section 3.736 only.
           (p) In order to be eligible for selection, hearing officers 
        and hearing review officers shall participate in training and 
        follow procedures as designated by the commissioner. 
           (q) The hearing officer may admit all evidence which 
        possesses probative value, including hearsay, if it is the type 
        of evidence on which reasonable, prudent persons are accustomed 
        to rely in the conduct of their serious affairs.  The hearing 
        officer shall give effect to the rules of privilege recognized 
        by law.  Evidence which is incompetent, irrelevant, immaterial, 
        or unduly repetitious shall be excluded. 
           Sec. 3.  Minnesota Statutes 1994, section 120.17, is 
        amended by adding a subdivision to read: 
           Subd. 19.  [PARENT ADVISORY COMMITTEES.] Provisions of 
        Minnesota Rules, part 3525.1100, regarding parent advisory 
        committees shall apply to local school boards or cooperative 
        boards carrying out the provisions of Minnesota Statutes, 
        section 120.17. 
           Sec. 4.  Minnesota Statutes 1994, section 120.1701, 
        subdivision 10, is amended to read: 
           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. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        120.1701, subdivision 20, is amended to read: 
           Subd. 20.  [DUE PROCESS HEARINGS.] By July 1, 1994, the 
        departments of children, families, and learning, health, and 
        human services shall develop procedures for hearings.  The 
        procedures for due process hearings and appeals shall be the 
        same as those in section 120.17, subdivision 3b.  The 
        responsibility for payment of costs and conducting due process 
        hearings and appeals shall be allocated to the appropriate 
        agency in accordance with section 120.1701, subdivisions 5, 13, 
        and 16.  
           Sec. 6.  [120.187] [DEFINITION.] 
           Subdivision 1.  [APPLICABILITY.] For the purposes of 
        sections 120.187 to 120.190, the following terms have the 
        meanings given them. 
           Subd. 2.  [ASSISTIVE TECHNOLOGY DEVICE.] "Assistive 
        technology device" means any item, piece of equipment, software, 
        or product system, whether acquired commercially off the shelf, 
        modified, or customized, that is used to increase, maintain, or 
        improve functional capabilities of children with disabilities. 
           Sec. 7.  [120.188] [PURCHASING GUIDELINES.] 
           Subdivision 1.  [RIGHTS OF SCHOOL DISTRICTS TO PURCHASE 
        SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 
        disability exits a school district and enters a new school 
        district, the child's new school district may purchase any 
        assistive technology devices that the child's former school 
        district has purchased on the child's behalf.  The child's new 
        school district must notify, in writing, the child's former 
        school district of the intent to purchase the device.  The 
        child's new school district must complete a purchase agreement 
        according to section 4.  The child's former school district must 
        respond, in writing, to the request to purchase within 30 days.  
           (b) School districts may decline to sell a device if they 
        can demonstrate the technology is a general use device or can be 
        modified for use by other students. 
           Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The child's 
        former school district shall not be liable for any 
        nonconformities in the equipment after it is purchased by the 
        child's new school district, or for injuries arising out of the 
        use of the assistive technology device.  This section does not 
        foreclose the child's right to bring suit against the 
        manufacturer, assistive device lessor, or assistive device 
        dealer for nonconformities in or injuries arising out of the use 
        of the assistive technology device. 
           Subd. 3.  [THIRD-PARTY PAYORS.] Nothing contained in this 
        section shall be construed as decreasing the obligation of an 
        insurance company or other third-party payor to provide coverage 
        for assistive technology. 
           Sec. 8.  [120.189] [INTERAGENCY AGREEMENT TO PURCHASE USED 
        ASSISTIVE TECHNOLOGY DEVICES.] 
           Subdivision 1.  [OPTION TO PURCHASE BY DEPARTMENT OF 
        ECONOMIC SECURITY.] (a) When a child with a disability 
        transitions into a work environment or enrolls in a 
        post-secondary course or program, the department of economic 
        security may purchase any assistive technology device that the 
        child's former school district purchased on the child's behalf. 
           (b) The department of economic security may purchase an 
        assistive technology device initially purchased by a school 
        district for a child who is currently a recipient of 
        rehabilitation services and who needs the identical assistive 
        technology device as stated on the recipient's individual 
        written rehabilitation plan.  The purchase may be made not more 
        than three months prior to the child exiting the school district.
           Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The department of 
        economic security and the department of children, families, and 
        learning shall not be liable for any nonconformities in the 
        equipment after it is purchased by the department of economic 
        security, or for injuries arising out of the use of the 
        assistive technology device.  This section does not foreclose 
        the child's right to bring suit against the manufacturer, 
        assistive device lessor, or assistive device dealer for 
        nonconformities in or injuries arising out of the use of the 
        assistive technology device. 
           Subd. 3.  [THIRD-PARTY PAYOR.] Nothing contained in this 
        section shall be construed as decreasing the obligation of an 
        insurance company or other third-party payor to provide coverage 
        for assistive technology. 
           Sec. 9.  [120.190] [PURCHASE AGREEMENT; PRICE FORMULA.] 
           The commissioner shall develop guidelines for the sale of 
        used assistive technology including a purchase agreement, a 
        formula for establishing the sale price, and other terms and 
        conditions of the sale. 
           Sec. 10.  Minnesota Statutes 1994, section 123.35, is 
        amended by adding a subdivision to read: 
           Subd. 9b.  [SERVICES FOR INDIAN STUDENTS.] School districts 
        may enter into agreements with Indian tribal governments for 
        purposes of providing educational services for students.  Such 
        agreements may allow for the use of any resources available to 
        either party and must give students the option to enroll in the 
        school district at their election. 
           Sec. 11.  Minnesota Statutes 1995 Supplement, section 
        124.273, subdivision 1c, is amended to read: 
           Subd. 1c.  [ADJUSTED LEP BASE REVENUE.] (a) A district's 
        adjusted limited English proficiency programs base revenue for 
        fiscal year 1996 and later equals the product of: 
           (1) the district's base revenue for limited English 
        proficiency programs under this section and section 124.321, 
        times 
           (2) the ratio of: 
           (i) the greater of 20 or the number of pupils of limited 
        English proficiency enrolled in the district during the current 
        fiscal year to 
           (ii) the greater of 20 or the number of pupils of limited 
        English proficiency enrolled in the district during fiscal the 
        base year 1995. 
           (b) For the purposes of this section, the base year for 
        fiscal year 1996 is fiscal year 1995.  The base year for later 
        fiscal years is the second fiscal year preceding the fiscal year 
        for which aid shall be paid.  The current year is the fiscal 
        year for which aid shall be paid. 
           (c) For the purposes of this section, a teacher includes 
        nonlicensed personnel who provide direct instruction to students 
        of limited English proficiency under the supervision of a 
        licensed teacher. 
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        124.273, subdivision 1d, is amended to read: 
           Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
        proficiency programs base revenue equals the sum of the 
        following amounts, computed using fiscal base year 1995 data:  
           (1) 68 percent of the salaries paid limited English 
        proficiency program teachers salary of one full-time equivalent 
        teacher for each 40 pupils of limited English proficiency 
        enrolled, or 68 percent of the salary of one-half of a full-time 
        teacher in a district with 20 or fewer pupils of limited English 
        proficiency enrolled; and 
           (2) for supplies and equipment purchased or rented for use 
        in the instruction of pupils of limited English proficiency an 
        amount equal to 47 percent of the sum actually spent by the 
        district but not to exceed an average of $47 in any one school 
        year for each pupil of limited English proficiency receiving 
        instruction. 
           (b) For the purposes of this subdivision, a teacher 
        includes nonlicensed personnel who provide direct instruction to 
        students of limited English proficiency under the supervision of 
        a licensed teacher. 
           Sec. 13.  Minnesota Statutes 1994, section 124.273, is 
        amended by adding a subdivision to read: 
           Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
        limited English proficiency programs revenue for fiscal year 
        1996 equals $12,202,000.  The state total limited English 
        proficiency programs revenue for fiscal year 1997 equals 
        $13,299,000.  
           (b) The state total limited English proficiency programs 
        revenue for later fiscal years equals: 
           (1) the state total limited English proficiency programs 
        revenue for the preceding fiscal year; times 
           (2) the program growth factor under section 124.3201, 
        subdivision 1; times 
           (3) the ratio of the state total number of pupils with 
        limited English proficiency for the current fiscal year to the 
        state total number of pupils with limited English proficiency 
        for the preceding fiscal year. 
           Sec. 14.  Minnesota Statutes 1994, section 124.273, is 
        amended by adding a subdivision to read: 
           Subd. 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
        district's limited English proficiency programs revenue for 
        fiscal year 1996 and later equals the state total limited 
        English proficiency programs revenue, minus the amount 
        determined under paragraph (b), times the ratio of the 
        district's adjusted limited English proficiency programs base 
        revenue to the state total adjusted limited English proficiency 
        programs base revenue. 
           (b) Notwithstanding paragraph (a), if the limited English 
        proficiency programs base revenue for a district equals zero, 
        the limited English proficiency programs revenue equals the sum 
        of the following amounts, computed using current year data: 
           (1) 68 percent of the salary of one full-time equivalent 
        teacher for each 40 pupils of limited English proficiency 
        enrolled, or 68 percent of the salary of one-half of a full-time 
        teacher in a district with 20 or fewer pupils of limited English 
        proficiency enrolled; and 
           (2) for supplies and equipment purchased or rented for use 
        in the instruction of pupils of limited English proficiency an 
        amount equal to 47 percent of the sum actually spent by the 
        district but not to exceed an average of $47 in any one school 
        year for each pupil of limited English proficiency receiving 
        instruction. 
           Sec. 15.  Minnesota Statutes 1994, section 124.311, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSTRUCTION IN REGULAR CLASSROOM.] A 
        school district may receive assurance of mastery revenue to 
        provide direct instructional services to eligible pupils in the 
        pupils' regular classroom.  
           Sec. 16.  Minnesota Statutes 1994, section 124.311, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
        must be used to provide direct instructional services to an 
        eligible pupil, or group of eligible pupils, under the following 
        conditions:  
           (a) Instruction may be provided at one or more grade levels 
        from kindergarten through grade 8.  If an assessment of pupils' 
        needs within a district demonstrates that the eligible pupils in 
        grades kindergarten through 8 are being appropriately served, a 
        district may serve eligible pupils in grades 9 through 12. 
           (b) Instruction must be provided in the usual and customary 
        classroom of the eligible pupil.  
           (c) Instruction must be provided under the supervision of 
        the eligible pupil's regular classroom teacher.  Instruction may 
        be provided by the eligible pupil's classroom teacher, by 
        another teacher, by a team of teachers, or by an education 
        assistant or aide.  A special education teacher may provide 
        instruction, but instruction that is provided under this section 
        is not eligible for aid under section 124.32.  
           (d) (c) The instruction that is provided must differ from 
        the initial instruction the pupil received in the regular 
        classroom setting.  The instruction may differ by presenting 
        different curriculum than was initially presented in the regular 
        classroom, or by presenting the same curriculum:  
           (1) at a different rate or in a different sequence than it 
        was initially presented; 
           (2) using different teaching methods or techniques than 
        were used initially; or 
           (3) using different instructional materials than were used 
        initially. 
           Sec. 17.  Minnesota Statutes 1994, section 124.311, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
        the sum of state and district money.  The sum may equal up to 
        $45 for fiscal year 1991 and thereafter times the number 
        of actual fund balance pupil units in kindergarten through grade 
        8 in the district.  The district shall determine the amount of 
        money it will provide and the state shall provide an equal 
        amount of money. 
           Sec. 18.  Minnesota Statutes 1995 Supplement, section 
        124.314, subdivision 2, is amended to read: 
           Subd. 2.  [LEVY.] For fiscal year 1997 1996 and thereafter, 
        a school district's targeted needs levy equals the sum of its 
        integration levy under section 124.912, subdivision 2, and that 
        portion of its special education levy attributed to the limited 
        English proficiency program. 
           Sec. 19.  Minnesota Statutes 1995 Supplement, section 
        124.3201, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section and sections 124.3202 and 124.321, the definitions in 
        this subdivision apply. 
           (a) "Base year" for fiscal year 1996 and fiscal year 1997 
        means fiscal year 1995 the 1994 summer program and the 1994-1995 
        school year.  Base year for later fiscal years means the second 
        fiscal year preceding the fiscal year for which aid will be paid.
           (b) "Basic revenue" has the meaning given it in section 
        124A.22, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 124.17, subdivision 1. 
           (c) "Essential personnel" means teachers, related services, 
        and support services staff providing direct services to students.
           (d) "Average daily membership" has the meaning given it in 
        section 124.17. 
           (e) "Program growth factor" means 1.00 for fiscal year 1998 
        and later. 
           (f) "Aid percentage factor" means 60 percent for fiscal 
        year 1996, 70 percent for fiscal year 1997, 80 percent for 
        fiscal year 1998, 90 percent for fiscal year 1999, and 100 
        percent for fiscal years 2000 and later. 
           (g) "Levy percentage factor" means 100 minus the aid 
        percentage factor for that year. 
           Sec. 20.  Minnesota Statutes 1995 Supplement, section 
        124.3201, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
        education base revenue equals the sum of the following amounts 
        computed using base year data: 
           (1) 68 percent of the salary of each essential person 
        employed in the district's program for children with a 
        disability during the regular school year, whether the person is 
        employed by one or more districts; 
           (2) for the Minnesota state academy for the deaf or the 
        Minnesota state academy for the blind, 68 percent of the salary 
        of each instructional aide assigned to a child attending the 
        academy, if that aide is required by the child's individual 
        education plan; 
           (3) for special instruction and services provided to any 
        pupil by contracting with public, private, or voluntary agencies 
        other than school districts, in place of special instruction and 
        services provided by the district, 52 percent of the difference 
        between the amount of the contract and the basic revenue of the 
        district for that pupil for the fraction of the school day the 
        pupil receives services under the contract; 
           (4) for special instruction and services provided to any 
        pupil by contracting for services with public, private, or 
        voluntary agencies other than school districts, that are 
        supplementary to a full educational program provided by the 
        school district, 52 percent of the amount of the contract for 
        that pupil; 
           (5) for supplies and equipment purchased or rented for use 
        in the instruction of children with a disability an amount equal 
        to 47 percent of the sum actually expended by the district but 
        not to exceed an average of $47 in any one school year for each 
        child with a disability receiving instruction; and 
           (6) for fiscal years 1997 and later, special education base 
        revenue shall include amounts under clauses (1) to (5) for 
        special education summer programs provided during the base year 
        for that fiscal year. 
           Sec. 21.  Minnesota Statutes 1995 Supplement, section 
        124.3201, is amended by adding a subdivision to read: 
           Subd. 2a.  [SPECIAL EDUCATION TUITION REVENUE.] (a) For 
        fiscal year 1996 and later, a district's special education 
        tuition revenue is equal to 50 percent of the difference between 
        tuition costs in the base year and actual tuition costs for 
        pupils whose individual education plans require placement in 
        another district under section 120.17. 
           (b) For purposes of this section, "tuition costs" means 
        expenditures for tuition bills as defined in section 124.323, 
        subdivision 2, paragraph (a), clause (2). 
           Sec. 22.  Minnesota Statutes 1995 Supplement, section 
        124.3201, is amended by adding a subdivision to read: 
           Subd. 2b.  [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For 
        fiscal year 1996 and later, a district's special education court 
        placement revenue is equal to 50 percent of the difference 
        between expenditures for teachers' salaries, contracted 
        services, supplies, and equipment eligible for revenues under 
        sections 124.3201 and 124.3202, in the base year and actual 
        expenditures for pupils with disabilities who receive services 
        pursuant to a court order. 
           Sec. 23.  Minnesota Statutes 1995 Supplement, section 
        124.3201, subdivision 3, is amended to read: 
           Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
        fiscal year 1996 and later, a district's adjusted special 
        education base revenue equals the district's special education 
        base revenue times the ratio of the district's average daily 
        membership for the current school year to the district's average 
        daily membership for the base year; plus the district's special 
        education tuition revenue under subdivision 2a and special 
        education court placement revenue under subdivision 2b. 
           Sec. 24.  Minnesota Statutes 1995 Supplement, section 
        124.3201, subdivision 5, is amended to read: 
           Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
        A school district's special education revenue for fiscal year 
        1996 and later equals the state total special education revenue, 
        minus the amount determined under paragraph (b), times the ratio 
        of the district's adjusted special education base revenue to the 
        state total adjusted special education base revenue.  If the 
        state board of education modifies its rules for special 
        education in a manner that increases a school district's special 
        education obligations or service requirements, the commissioner 
        of children, families, and learning shall annually increase each 
        district's special education revenue by the amount necessary to 
        compensate for the increased service requirements.  The 
        additional revenue equals the cost in the current year 
        attributable to rule changes not reflected in the computation of 
        special education base revenue, multiplied by the appropriate 
        percentages from subdivision 2. 
           (b) Notwithstanding paragraph (a), if the special education 
        base revenue for a district equals zero, the special education 
        revenue equals the amount computed according to subdivision 2 
        using current year data.  
           Sec. 25.  Minnesota Statutes 1995 Supplement, section 
        124.3202, is amended to read: 
           124.3202 [SPECIAL EDUCATION SUMMER PROGRAM REVENUE.] 
           Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
        program base revenue for fiscal year 1996 and fiscal year 1997 
        equals the sum of the following amounts computed using base year 
        data: 
           (1) 68 percent of the summer program salary of each 
        essential person employed in the district's program for children 
        with a disability, whether the person is employed by one or more 
        districts; 
           (2) for the Minnesota state academy for the deaf or the 
        Minnesota state academy for the blind, 68 percent of the summer 
        program salary of each instructional aide assigned to a child 
        attending the academy, if that aide is required by the child's 
        individual education plan; 
           (3) for special instruction and services provided to any 
        pupil by contracting with public, private, or voluntary agencies 
        other than school districts, in place of special instruction and 
        services provided by the district, 52 percent of the difference 
        between the amount of the contract for the summer program and 
        the basic revenue of the district for that pupil for the 
        fraction of the school day the pupil receives services under the 
        contract; and 
           (4) for special instruction and services provided to any 
        pupil by contracting for services with public, private, or 
        voluntary agencies other than school districts, that are 
        supplementary to a full educational program provided by the 
        school district, 52 percent of the amount of the summer program 
        contract for that pupil. 
           Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
        fiscal year 1996 and later fiscal year 1997, a district's 
        adjusted summer program base revenue equals the district's 
        summer program base revenue times the ratio of the district's 
        average daily membership for the current school year to the 
        district's average daily membership for the base year. 
           Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
        total summer program revenue for fiscal year 1996 equals 
        $7,152,000.  The state total summer program revenue for fiscal 
        year 1997 equals $3,728,500.  Fiscal year 1996 summer program 
        revenue is for 1995 summer programs.  Fiscal year 1997 summer 
        program revenue is for 1996 summer programs provided in fiscal 
        year 1996. 
           Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] (a) A 
        school district's summer program revenue for fiscal year 
        1996 and fiscal year 1997 equals the state total summer program 
        revenue, minus the amount determined under paragraph (b), times 
        the ratio of the district's adjusted summer program base revenue 
        to the state total adjusted summer program base revenue. 
           (b) Notwithstanding paragraph (a), if the special education 
        base revenue for a district under section 124.3201, subdivision 
        2, equals zero, the summer program revenue equals the amount 
        computed according to subdivision 1 using current year data.  
           Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 
        district's special education summer program aid for fiscal year 
        1996 and fiscal year 1997 equals the district's summer program 
        revenue times the aid percentage factor for that year. 
           Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
        INTERMEDIATES.] For the purposes of this section and section 
        124.321, a special education cooperative or an intermediate 
        district shall allocate its approved expenditures for special 
        education programs among participating school districts.  
        Special education summer program aid for services provided by a 
        cooperative or intermediate district shall be paid to the 
        participating school districts. 
           Sec. 26.  Minnesota Statutes 1995 Supplement, section 
        124.323, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] In this section, the 
        definitions in this subdivision apply. 
           (a) "Unreimbursed special education cost" means the sum of 
        the following: 
           (1) expenditures for teachers' salaries, contracted 
        services, supplies, and equipment eligible for revenue under 
        sections 124.3201, and 124.3202, and 124.321; plus 
           (2) expenditures for tuition bills received under section 
        120.17 for services eligible for revenue under sections 
        124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
           (3) revenue for teachers' salaries, contracted services, 
        supplies, and equipment under sections 124.3201, and 124.3202, 
        and 124.321; minus 
           (4) tuition receipts under section 120.17 for services 
        eligible for revenue under sections 124.3201, subdivision 2, and 
        124.3202, subdivision 1. 
           (b) "General revenue," for fiscal year 1996, means the sum 
        of the general education revenue according to section 124A.22, 
        subdivision 1, as adjusted according to section 124A.036, 
        subdivision 5, plus the total referendum revenue according to 
        section 124A.03, subdivision 1e.  For fiscal years 1997 and 
        later, "general revenue" means the sum of the general education 
        revenue according to section 124A.22, subdivision 1, as adjusted 
        according to section 124A.036, subdivision 5, plus the total 
        referendum revenue minus transportation sparsity revenue minus 
        total operating capital revenue. 
           Sec. 27.  Minnesota Statutes 1995 Supplement, section 
        124.323, subdivision 2, is amended to read: 
           Subd. 2.  [EXCESS COST REVENUE.] For 1996 and later fiscal 
        years, a district's special education excess cost revenue equals 
        the product of: 
           (1) 70 percent of the difference between (i) (1) the 
        district's unreimbursed special education cost per actual pupil 
        unit and (ii) (2) six percent for fiscal year 1996 and 5.7 
        percent for fiscal year 1997 and later years of the district's 
        general revenue per actual pupil unit, times 
           (2) the district's actual pupil units for that year. 
           Sec. 28.  Minnesota Statutes 1995 Supplement, section 
        124.574, subdivision 2f, is amended to read: 
           Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
        REVENUE.] The state total secondary vocational-disabled revenue 
        for fiscal year 1996 equals $7,645,000 $8,520,000.  The state 
        total secondary vocational-disabled revenue for fiscal year 1997 
        equals $7,960,000 $8,830,000.  The state total secondary 
        vocational-disabled revenue for later fiscal years equals:  
           (1) the state total secondary vocational-disabled revenue 
        for the preceding fiscal year; times 
           (2) the program growth factor; times 
           (3) the ratio of the state total average daily membership 
        for the current fiscal year to the state total average daily 
        membership for the preceding fiscal year. 
           Sec. 29.  Minnesota Statutes 1995 Supplement, section 
        124.574, subdivision 2g, is amended to read: 
           Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
        REVENUE.] (a) A school district's secondary vocational-disabled 
        revenue for fiscal year 1996 and later equals the state total 
        secondary vocational-disabled revenue, minus the amount 
        determined under paragraph (b), times the ratio of the 
        district's adjusted secondary vocational-disabled base revenue 
        to the state total adjusted secondary vocational-disabled base 
        revenue. 
           (b) Notwithstanding paragraph (a), if the secondary 
        vocational-disabled base revenue for a district equals zero and 
        no district residents were enrolled in secondary 
        vocational-disabled programs during the base year, the secondary 
        vocational-disabled revenue equals the amount computed according 
        to subdivision 2d using current year data. 
           Sec. 30.  Minnesota Statutes 1994, section 124.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] Each year each American 
        Indian-controlled tribal contract or grant school authorized by 
        the United States Code, title 25, section 450f, that is located 
        on a reservation within the state is eligible to receive tribal 
        contract or grant school aid subject to the requirements in this 
        subdivision. 
           (a) The school must plan, conduct, and administer an 
        education program that complies with the requirements of either 
        this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
        126, 129, and 268A or Code of Federal Regulations, title 25, 
        sections 31.0 to 45.80. 
           (b) The school must comply with all other state statutes 
        governing independent school districts or their equivalent in 
        the Code of Federal Regulations, title 25.  
           (c) The state tribal contract or grant school aid must be 
        used to supplement, and not to replace, the money for American 
        Indian education programs provided by the federal government. 
           Sec. 31.  Minnesota Statutes 1994, 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 
        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 sum of the result in clause (3) plus 
        $300. 
           Sec. 32.  Minnesota Statutes 1994, section 126.531, 
        subdivision 3, is amended to read: 
           Subd. 3.  Each committee shall be reimbursed for expenses 
        according to section 15.059, subdivision 6.  The state board 
        shall determine the membership terms and the duration of each 
        committee, which expire no later than June 30, 1997. 
           Sec. 33.  Minnesota Statutes 1995 Supplement, section 
        325G.203, subdivision 11, is amended to read: 
           Subd. 11.  [NONCONFORMITY.] "Nonconformity" means a 
        specific condition or generic defect or malfunction, or a defect 
        or condition that substantially impairs the use, value, or 
        safety of an assistive device, but does not include a condition 
        or defect that is the result of abuse or unauthorized 
        modification or alteration of the assistive device by the 
        consumer.  
           For those assistive devices regulated under section 
        153A.19, "nonconformity" does not include a condition of the 
        device that is the result of normal use which could be resolved 
        through fitting adjustments, cleaning, or proper care. 
           Sec. 34.  Minnesota Statutes 1994, section 466.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MUNICIPALITY.] For the purposes of 
        sections 466.01 to 466.15, "municipality" means any city, 
        whether organized under home rule charter or otherwise, any 
        county, town, public authority, public corporation, special 
        district, school district, however organized, county 
        agricultural society organized pursuant to chapter 38, joint 
        powers board or organization created under section 471.59 or 
        other statute, public library, regional public library system, 
        multicounty multitype library system, family services 
        collaborative established under section 121.8355, other 
        political subdivision, or community action agency. 
           Sec. 35.  Minnesota Statutes 1994, section 471.59, 
        subdivision 11, is amended to read: 
           Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
        governmental units, through action of their governing bodies, by 
        adoption of a joint powers agreement that complies with the 
        provisions of subdivisions 1 to 5, may establish a joint board 
        to issue bonds or obligations pursuant to under any law by which 
        any of the governmental units establishing the joint board may 
        independently issue bonds or obligations and may use the 
        proceeds of the bonds or obligations to carry out the purposes 
        of the law under which the bonds or obligations are issued.  A 
        joint board created pursuant to established under this section 
        may issue obligations and other forms of indebtedness 
        only pursuant to in accordance with express authority granted by 
        the action of the governing bodies of the governmental 
        units which that established the joint board.  Except as 
        provided in paragraph (b), the joint board established pursuant 
        to under this subdivision shall must be composed solely of 
        members of the governing bodies of the governmental unit which 
        that established the joint board, and the.  A joint 
        board established under this subdivision may not pledge the full 
        faith and credit or taxing power of any of the governmental 
        units which that established the joint board.  The obligations 
        or other forms of indebtedness shall must be obligations of the 
        joint board issued on behalf of the governmental units creating 
        the joint board.  The obligations or other forms of indebtedness 
        shall must be issued in the same manner and subject to the same 
        conditions and limitations which that would apply if the 
        obligations were issued or indebtedness incurred by one of the 
        governmental units which that established the joint board, 
        provided that any reference to a governmental unit in the 
        statute, law, or charter provision authorizing the issuance of 
        the bonds or the incurring of the indebtedness shall be is 
        considered a reference to the joint board. 
           (b) Notwithstanding paragraph (a), one school district, one 
        county, and one public health entity, through action of their 
        governing bodies, may establish a joint board to establish and 
        govern a family services collaborative under section 121.8355.  
        The school district, county, and public health entity may 
        include other governmental entities at their discretion.  The 
        membership of a board established under this paragraph, in 
        addition to members of the governing bodies of the participating 
        governmental units, must include the representation required by 
        section 121.8355, subdivision 1, paragraph (a), selected in 
        accordance with section 121.8355, subdivision 1, paragraph (c). 
           Sec. 36.  Laws 1995, First Special Session chapter 3, 
        article 3, section 19, subdivision 7, is amended to read: 
           Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid according to Minnesota Statutes, section 124.86: 
             $238,000     .....     1996
             $361,000 $861,000    .....     1997
           The 1996 appropriation includes $19,000 for 1995 and 
        $219,000 for 1996. 
           The 1997 appropriation includes $38,000 for 1996 and 
        $323,000 $823,000 for 1997. 
           Sec. 37.  Laws 1995, First Special Session chapter 3, 
        article 3, section 19, subdivision 15, is amended to read: 
           Subd. 15.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
        secondary vocational education aid according to Minnesota 
        Statutes, section 124.573: 
             $11,874,000     .....     1996 
             $11,596,000 $11,771,000    .....     1997 
           The 1996 appropriation includes $2,017,000 for 1995 and 
        $9,857,000 for 1996.  
           The 1997 appropriation includes $1,739,000 for 1996 and 
        $9,857,000 $10,032,000 for 1997. 
           Sec. 38.  Laws 1995, First Special Session chapter 3, 
        article 15, section 26, subdivision 7, is amended to read: 
           Subd. 7.  [TARGETED NEEDS AID.] For targeted needs aid: 
             $37,682,000 $39,546,000    .....     1996 
             $41,597,000 $41,606,000    .....     1997 
           (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 
        $4,359,000 $6,223,000 is for 1996 LEP aid.  Of the 1996 amount, 
        $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM 
        aid.  Of the 1996 amount, $18,844,000 is for 1996 integration 
        aid. 
           (b) Of the 1997 amount, $1,089,000 $1,098,000 is for 1996 
        LEP aid and $7,913,000 is for 1997 LEP aid.  Of the 1997 amount, 
        $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM 
        aid.  Of the 1997 amount, $18,844,000 is for 1997 integration 
        aid. 
           (c) As a condition of receiving a grant, each district must 
        continue to report its costs according to the uniform financial 
        accounting and reporting system.  As a further condition of 
        receiving a grant, each district must submit a report to the 
        chairs of the education committees of the legislature about the 
        actual expenditures it made for integration using the grant 
        money including achievement results.  These grants may be used 
        to transport students attending a nonresident district under 
        Minnesota Statutes, section 120.062, to the border of the 
        resident district.  A district may allocate a part of the grant 
        to the transportation fund for this purpose. 
           Sec. 39.  Laws 1995, First Special Session chapter 3, 
        article 15, section 26, subdivision 8, is amended to read: 
           Subd. 8.  [SECONDARY VOCATIONAL; STUDENTS WITH 
        DISABILITIES.] For aid for secondary vocational education for 
        pupils with disabilities according to Minnesota Statutes, 
        section 124.574: 
             $4,489,000 $4,936,000    .....     1996 
             $5,424,000 $6,020,000    .....     1997 
           The 1996 appropriation includes $590,000 for 1995 and 
        $3,899,000 $4,346,000 for 1996.  
           The 1997 appropriation includes $688,000 $766,000 for 1996 
        and $4,736,000 $5,254,000 for 1997.  
           Sec. 40.  Laws 1995, First Special Session chapter 3, 
        article 15, section 26, subdivision 10, is amended to read: 
           Subd. 10.  [LOW-INCOME CONCENTRATION GRANTS.] For 
        low-income concentration grants according to Laws 1994, chapter 
        647, article 8, section 43: 
             $1,150,000     .....     1996 
             $1,150,000 $1,300,000    .....     1997 
           Each grant shall be for no more than $50,000. 
           Sec. 41.  [OSSEO LEVY.] 
           For levies payable in 1997 only, independent school 
        district No. 279, Osseo, may levy a tax in an amount not to 
        exceed $800,000.  The proceeds of this levy must be used to 
        provide instructional services for at-risk children. 
           Sec. 42.  [FISCAL YEAR 1997 SECONDARY VOCATIONAL 
        GUARANTEE.] 
           (a) Notwithstanding Minnesota Statutes, section 124.573, 
        subdivision 2f, paragraphs (a) and (b), a school district's 
        secondary vocational aid for fiscal year 1997 shall not be less 
        than 25 percent of the lessor of (1) $90,000, or (2) the 
        approved expenditure included in subdivision 2b, paragraph (b). 
           (b) Aid provided according to this section is not included 
        in the fiscal year 1997 base for calculating fiscal year 1998 
        aid according to Minnesota Statutes, section 124.573, 
        subdivision 2f, paragraph (a). 
           (c) The amounts allocated according to this section are not 
        included in the secondary vocational aid base for fiscal year 
        1998 and after. 
           Sec. 43.  [EFFECTIVE DATE.] 
           Sections 11 to 14, 26 and 29 are effective retroactively to 
        July 1, 1995, for the 1995-1996 school year and later.  Sections 
        21 to 23 are effective for fiscal year 1996.  Sections 24 and 38 
        are effective the day following final enactment. 
                                   ARTICLE 4 
                               COMMUNITY PROGRAMS 
           Section 1.  [120.063] [SCHOOL ATTENDANCE.] 
           Attendance at a particular public school is a privilege not 
        a right for a pupil.  
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        120.064, subdivision 9, is amended to read: 
           Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
        limit admission to: 
           (1) pupils within an age group or grade level; 
           (2) people who are eligible to participate in the high 
        school graduation incentives program under section 126.22; or 
           (3) residents of a specific geographic area where the 
        percentage of the population of non-Caucasian people of that 
        area is greater than the percentage of the non-Caucasian 
        population in the congressional district in which the geographic 
        area is located, and as long as the school reflects the racial 
        and ethnic diversity of the specific area. 
           A charter school shall enroll an eligible pupil who submits 
        a timely application, unless the number of applications exceeds 
        the capacity of a program, class, grade level, or building.  In 
        this case, pupils shall be accepted by lot. 
           A charter school may not limit admission to pupils on the 
        basis of intellectual ability, measures of achievement or 
        aptitude, or athletic ability.  
           Sec. 3.  [121.615] [MINNESOTA SCHOOL-TO-WORK STUDENT 
        ORGANIZATION.] 
           Subdivision 1.  [CITATION.] This section may be cited as 
        the "Minnesota school-to-work student organization act." 
           Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
        Minnesota school-to-work student organization foundation.  The 
        purpose of the foundation shall be to promote vocational student 
        organizations and applied leadership opportunities in Minnesota 
        public schools through public-private partnerships.  The 
        foundation shall be a nonprofit organization.  The board of 
        directors of the foundation and activities of the foundation are 
        under the direction of the department of children, families, and 
        learning. 
           Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
        the school-to-work student organization foundation shall consist 
        of: 
           (1) chairs or designees from the board of directors of FFA 
        (formerly Future Farmers of America), Future Leaders of 
        America/Future Homemakers of America, post-secondary agriculture 
        students, home economics related occupations, Health Occupations 
        Student Association, Distributive Education Clubs of America, 
        Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
        America, Post-secondary Vocational Industrial Clubs of America, 
        Secondary Business Professionals of America, and Post-secondary 
        Business Professionals of America; 
           (2) four members from business and industry appointed by 
        the governor; and 
           (3) five students representing diverse vocational areas, 
        three of whom are appointed by the commissioner of the 
        department of children, families, and learning and two of whom 
        are appointed by the chancellor of the Minnesota state colleges 
        and universities with the advice of the executive councils of 
        each vocational education student organization. 
           Executive directors of vocational education student 
        organizations are ex officio, nonvoting members of the board. 
           Subd. 4.  [FOUNDATION PROGRAMS.] The foundation shall 
        advance applied leadership and intracurricular vocational 
        learning experiences for students.  These may include, but are 
        not limited to: 
           (1) recognition programs and awards for students 
        demonstrating excellence in applied leadership; 
           (2) summer programs for student leadership, career 
        development, applied academics, and mentorship programs with 
        business and industry; 
           (3) recognition programs for teachers, administrators, and 
        others who make outstanding contributions to school-to-work 
        programs; 
           (4) outreach programs to increase the involvement of urban 
        and suburban students; 
           (5) organized challenges requiring cooperation and 
        competition for secondary and post-secondary students; 
           (6) assistance and training to community teams to increase 
        career awareness and empowerment of youth as community leaders; 
        and 
           (7) assessment and activities in order to plan for and 
        implement continuous improvement.  
           To the extent possible, the foundation shall make these 
        programs available to students in all parts of the state. 
           Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
           (1) identify and plan common goals and priorities for the 
        various school-to-work student organizations in Minnesota; 
           (2) publish brochures or booklets relating to the purposes 
        of the foundation and collect reasonable fees for the 
        publications; 
           (3) seek and receive public and private money, grants, and 
        in-kind services and goods from nonstate sources for the 
        purposes of the foundation; 
           (4) contract with consultants on behalf of the 
        school-to-work student organizations; and 
           (5) plan, implement, and expend money for awards and other 
        forms of recognition for school-to-work student activities. 
           Subd. 6.  [CONTRACTS.] The foundation board of directors 
        shall review and approve foundation personnel and programming 
        contracts. 
           Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
        department of children, families, and learning shall appoint the 
        executive director of the foundation from three candidates 
        nominated and submitted by the foundation board of directors 
        and, as necessary, other staff who shall perform duties and have 
        responsibilities solely related to the foundation.  The 
        employees appointed are not state employees under chapter 43A, 
        but are covered under section 3.736.  The employees may 
        participate in the state health and state insurance plans for 
        employees in unclassified service.  
           The commissioner shall appoint from the office of lifework 
        development a liaison to the foundation board. 
           Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
        department of children, families, and learning shall identify 
        and secure appropriate sources of state and federal funding from 
        various state agencies, including, but not limited to, Minnesota 
        state colleges and universities, for the operation and 
        development of school-to-work student organizations. 
           Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
        private resources to supplement the allocated state and federal 
        money.  Individuals, businesses, and other organizations may 
        contribute to the foundation in any manner specified by the 
        board of directors. 
           Subd. 10.  [REPORT.] The foundation shall submit an annual 
        report and assessment to the office of lifework development and 
        to the board of trustees of the Minnesota state colleges and 
        universities. 
           Subd. 11.  [APPROPRIATION.] There is annually appropriated 
        to the foundation all the amounts received by the foundation 
        pursuant to this section. 
           Subd. 12.  [STUDENT ORGANIZATIONS.] Individual boards of 
        vocational education student organizations shall continue their 
        operations in accordance with section 126.151 and applicable 
        federal law. 
           Sec. 4.  Minnesota Statutes 1994, 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, one 
        community action agency as defined in section 268.53, and one 
        Head Start grantee if the community action agency is not the 
        designated federal grantee for the Head Start program 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, tribal entities, 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, parent organizations, parents, 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, community action, 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.  
           (c) Members of the governing bodies of political 
        subdivisions involved in the establishment of a family services 
        collaborative shall select representatives of the 
        nongovernmental entities listed in paragraph (a) to serve on the 
        governing board of a collaborative.  The governing body members 
        of the political subdivisions shall select one or more 
        representatives of the nongovernmental entities within the 
        family service collaborative. 
           Sec. 5.  Minnesota Statutes 1994, section 121.8355, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
        mutual agreement of the collaborative and a coordinating body 
        listed in this subdivision, a family services collaborative may 
        assume the duties of a community transition interagency 
        committee established under section 120.17, subdivision 16; an 
        interagency early intervention committee established under 
        section 120.1701, subdivision 5; a local advisory council 
        established under section 245.4875, subdivision 5; or a local 
        coordinating council established under section 245.4875, 
        subdivision 6. 
           Sec. 6.  Minnesota Statutes 1994, section 124.17, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a 
        pupil who has not passed an assessment of basic graduation 
        standards in reading, writing, or mathematics is enrolled in a 
        mastery of basic skills summer school program that is not a part 
        of the regular school term and the student has a total 
        enrollment time of more than 1,020 hours in a school year, the 
        pupil may be counted as more than one pupil in average daily 
        membership for purposes of this subdivision only.  The amount in 
        excess of one pupil must be determined by the ratio of the 
        number of hours of instruction provided to that pupil in excess 
        of 1,020 hours.  For each pupil, only the amount of summer 
        school enrollment time attributable to basic skills instruction 
        may be used to calculate the additional hours in the school 
        year.  Basic skills instruction is defined as in Minnesota's 
        rules on graduation standards and includes reading, writing, and 
        mathematics.  Hours that occur after the close of the 
        instructional year in June shall be attributable to the 
        following fiscal year.  A pupil for whom payment is made under 
        this subdivision may be counted by a district only for the 
        computation of basic revenue, according to section 124A.22, 
        subdivision 2, minus $300. 
           Sec. 7.  Minnesota Statutes 1994, section 124.2711, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RESERVE ACCOUNT.] Early childhood family 
        education revenue, which includes aids, levies, fees, grants, 
        and all other revenues received by the school district for early 
        childhood family education programs, must be maintained in a 
        reserve account within the community service fund.  
           Sec. 8.  Minnesota Statutes 1994, section 124.2713, 
        subdivision 10, is amended to read: 
           Subd. 10.  [RESERVE ACCOUNT.] Community education revenue, 
        which includes aids, levies, fees, grants, and all other 
        revenues received by the school district for community education 
        programs, must be maintained in a reserve account within the 
        community service fund. 
           Sec. 9.  Minnesota Statutes 1994, section 124.276, is 
        amended to read: 
           124.276 [CAREER TEACHER FAMILY CONNECTIONS AID.] 
           Subdivision 1.  [ELIGIBILITY.] A school district that has a 
        career teacher family connections program, according to sections 
        125.70 to 125.705, for one or more of its teachers is eligible 
        for aid to extend the teaching contract of a career family 
        connections teacher.  
           Subd. 2.  [STATE SHARE OF EXTENDED CONTRACT.] The state 
        shall pay two-thirds of the portion of the teaching contract, 
        excluding fringe benefits, that is in addition to the standard 
        teaching contract of the district.  The district shall pay the 
        remaining portion.  
           Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
        approve plans and applications for districts throughout the 
        state for career teacher family connections aid.  Application 
        procedures and deadlines shall be established by the 
        commissioner.  
           Subd. 4.  [USE OF AID.] Career teacher family connections 
        aid may be used only to implement a career teacher family 
        connections program.  
           Sec. 10.  Minnesota Statutes 1994, section 124.912, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CRIME RELATED COSTS.] For taxes levied in 1991 
        and subsequent years, payable in 1992 and subsequent years, each 
        school district may make a levy on all taxable property located 
        within the school district for the purposes specified in this 
        subdivision.  The maximum amount which may be levied for all 
        costs under this subdivision shall be equal to $1 multiplied by 
        the population of the school district.  For purposes of this 
        subdivision, "population" of the school district means the same 
        as contained in section 275.14.  The proceeds of the levy must 
        be used for reimbursing the cities and counties who contract 
        with the school district for the following purposes:  (1) to pay 
        the costs incurred for the salaries, benefits, and 
        transportation costs of peace officers and sheriffs for liaison 
        services in the district's middle and secondary schools and; (2) 
        to pay the costs for a drug abuse prevention program as defined 
        in Minnesota Statutes 1991 Supplement, section 609.101, 
        subdivision 3, paragraph (f) in the elementary schools; or (3) 
        to pay the costs for a gang resistance education training 
        curriculum in the middle schools.  The school district must 
        initially attempt to contract for these services with the police 
        department of each city or the sheriff's department of the 
        county within the school district containing the school 
        receiving the services.  If a local police department or a 
        county sheriff's department does not wish to provide the 
        necessary services, the district may contract for these services 
        with any other police or sheriff's department located entirely 
        or partially within the school district's boundaries.  The levy 
        authorized under this subdivision is not included in determining 
        the school district's levy limitations. 
           Sec. 11.  Minnesota Statutes 1994, section 124A.291, is 
        amended to read: 
           124A.291 [RESERVED REVENUE FOR CERTAIN TEACHER PROGRAM.] 
           A district that has a career teacher family connections 
        program or a mentor-teacher program may reserve part of the 
        basic revenue under section 124A.22, subdivision 2, for the 
        district's share, of the portion of the teaching contract that 
        is in addition to the standard teaching contract of the district.
           Sec. 12.  Minnesota Statutes 1994, section 124C.45, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
        a member of an area learning center must reserve revenue in an 
        amount equal to at least 90 percent of the basic revenue 
        generated by each student attending an area learning center 
        program under this section.  The amount of reserved revenue 
        under this subdivision may only be spent on program costs 
        associated with the area learning center. 
           Sec. 13.  Minnesota Statutes 1994, section 125.70, is 
        amended to read: 
           125.70 [CITATION.] 
           Sections 125.701 to 125.705 may be cited as the "Minnesota 
        career teacher family connections act."  
           Sec. 14.  Minnesota Statutes 1994, section 125.701, is 
        amended to read: 
           125.701 [PURPOSE OF THE CAREER TEACHER FAMILY CONNECTIONS 
        ACT.] 
           The legislature recognizes the unique and lifelong learning 
        and development process of all human beings.  The legislature is 
        committed to the goal of maximizing the individual growth 
        potential of all learners.  The purposes of the career teacher 
        family connections act are:  
           (1) to offer career teacher family connections programs 
        which emphasize learning and development based on learner 
        outcomes; 
           (2) to recognize and utilize the unique skills that 
        teachers, students, family, and the community have in both the 
        teaching process and the learning and development process; and 
           (3) to provide an opportunity for maximum use of teachers, 
        principals, and counselors.  
           Sec. 15.  Minnesota Statutes 1994, section 125.703, is 
        amended to read: 
           125.703 [ADVISORY COUNCIL.] 
           The school board of a district providing a career teacher 
        family connections program shall appoint an advisory council.  
        Council members shall be selected from the school attendance 
        area in which programs are provided.  Members of the council may 
        include students, teachers, principals, administrators and 
        community members.  A majority of the members shall be parents 
        with children participating in the local program.  The local 
        advisory council shall advise the school board in the 
        development, coordination, supervision, and review of the career 
        teacher program.  The council shall meet at least two times each 
        year with any established community education advisory council 
        in the district.  Members of the council may be members of the 
        community education advisory council.  The council shall report 
        to the school board. 
           Sec. 16.  Minnesota Statutes 1994, section 125.704, is 
        amended to read: 
           125.704 [CAREER TEACHER FAMILY CONNECTIONS PROGRAM 
        COMPONENTS.] 
           Subdivision 1.  [MANDATORY COMPONENTS.] A career 
        teacher family connections program shall include:  
           (1) participation by a designated individual as a career 
        teacher, principal-teacher, or counselor teacher; 
           (2) an emphasis on each individual child's unique learning 
        and development needs; 
           (3) procedures to give the career teacher a major 
        responsibility for leadership of the instructional and 
        noninstructional activities of each child beginning with early 
        childhood family education; 
           (4) procedures to involve parents in the learning and 
        development experiences of their children; 
           (5) procedures to implement outcome based education by 
        focusing on the needs of the learner; 
           (6) procedures to coordinate and integrate the 
        instructional program with all community education programs; 
           (7) procedures to concentrate career teacher programs at 
        sites that provide early childhood family education and 
        subsequent learning and development programs; and 
           (8) procedures for the district to fund the program.  
           Subd. 2.  [OPTIONAL COMPONENTS.] A career teacher family 
        connections program may include:  
           (1) efforts to improve curricula strategies, instructional 
        strategies, and use of materials that respond to the individual 
        educational needs and learning styles of each pupil in order to 
        enable each pupil to make continuous progress and to learn at a 
        rate appropriate to that pupil's abilities; 
           (2) efforts to develop student abilities in basic skills; 
        applied learning skills; and, when appropriate, arts; 
        humanities; physical, natural, and social sciences; 
        multicultural education; physical, emotional, and mental health; 
        consumer economics; and career education; 
           (3) use of community resources and communications media to 
        pursue learning and development opportunities for pupils; 
           (4) staff development for teachers and other school 
        personnel; 
           (5) improvements to the learning and development 
        environment, including use of the community in general, to 
        enhance the learning and development process; 
           (6) cooperative efforts with other agencies involved with 
        human services or child development and development of 
        alternative community based learning and development 
        experiences; 
           (7) post-secondary education components for pupils who are 
        able to accelerate or programs for pupils with special abilities 
        and interests who are given advanced learning and development 
        opportunities within existing programs; 
           (8) use of volunteers in the learning and development 
        program; 
           (9) flexible attendance schedules for pupils; 
           (10) adult education component; 
           (11) coordination with early childhood family education and 
        community education programs; 
           (12) variable student/faculty ratios for special education 
        students to provide for special programming; 
           (13) inclusion of nonpublic pupils as part of the ratio in 
        the career teacher, principal-teacher, and counselor teacher 
        component; 
           (14) application of educational research findings; 
           (15) summer learning and development experiences for 
        students as recommended by the career teacher, 
        principal-teacher, and counselor teacher; 
           (16) use of education assistants, teacher aides, or 
        paraprofessionals as part of the career teacher program; 
           (17) establishment of alternative criteria for high school 
        graduation; and 
           (18) variable age and learning size groupings of students. 
           Sec. 17.  Minnesota Statutes 1994, section 125.705, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATUS.] A career teacher family 
        connections program may include a career teacher, 
        principal-teacher, and counselor teacher component.  The career 
        teacher, principal-teacher, and counselor teacher shall not be 
        the exclusive teacher for students assigned to them but shall 
        serve as a primary teacher and perform the function of 
        developing and implementing a student's overall learning and 
        development program.  The career teacher, principal-teacher, and 
        counselor teacher may be responsible for regular assignments as 
        well as learning and development programs for other assigned 
        students.  
           Sec. 18.  Minnesota Statutes 1994, section 126.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] The legislature finds that it is 
        critical for persons to obtain at least a high school education 
        to function in today's society to provide options for children 
        to succeed in school.  Therefore, the purpose of this section is 
        to provide incentives for and encourage all Minnesota students 
        who have experienced or are experiencing difficulty in the 
        traditional education system to enroll in alternative programs 
        in order to complete their high school education. 
           Sec. 19.  Minnesota Statutes 1995 Supplement, section 
        126.22, subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
        eligible to participate in the high school graduation incentives 
        education options program:  
           (a) any pupil who is between the ages of 12 and under the 
        age of 21, or who is an elementary pupil, and in either case, 
        who:  
           (1) is at least two grade levels performs substantially 
        below the performance level for pupils of the same age in a 
        locally determined achievement test; or 
           (2) is at least one year behind in satisfactorily 
        completing coursework or obtaining credits for graduation; or 
           (3) is pregnant or is a parent; or 
           (4) has been assessed as chemically dependent; or 
           (5) has been excluded or expelled according to sections 
        127.26 to 127.39; or 
           (6) has been referred by a school district for enrollment 
        in an eligible program or a program pursuant to section 126.23; 
        or 
           (7) is a victim of physical or sexual abuse; or 
           (8) has experienced mental health problems; or 
           (9) has experienced homelessness sometime within six months 
        before requesting a transfer to an eligible program; or 
           (10) speaks English as a second language or has limited 
        English proficiency; or 
           (b) any person who is at least 21 years of age and who:  
           (1) has received fewer than 14 years of public or nonpublic 
        education, beginning at age 5; 
           (2) has not completed the requirements for a high school 
        diploma; and 
           (3) at the time of application, (i) is eligible for 
        reemployment insurance benefits or has exhausted the benefits, 
        (ii) is eligible for, or is receiving income maintenance and 
        support services, as defined in section 268.0111, subdivision 5, 
        or (iii) is eligible for services under the displaced homemaker 
        program, state wage-subsidy program, or any programs under the 
        federal Jobs Training Partnership Act or its successor. 
           Sec. 20.  Minnesota Statutes 1995 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 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 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. 21.  Minnesota Statutes 1995 Supplement, section 
        126.22, subdivision 5, is amended to read: 
           Subd. 5.  [DISSEMINATION OF INFORMATION.] A school district 
        shall disseminate information, developed by the department of 
        children, families, and learning, about the high school 
        graduation incentives program to residents in the district who 
        are under the age of 21. 
           Sec. 22.  Minnesota Statutes 1995 Supplement, section 
        126.22, subdivision 8, is amended to read: 
           Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
        attending an eligible program full time under subdivision 3, 
        paragraph (d), the department of children, families, and 
        learning shall pay 88 90 percent of the basic revenue of the 
        district to the eligible program and 12 ten percent of the basic 
        revenue to the resident district within 30 days after the 
        eligible program verifies enrollment using the form provided by 
        the department.  For a pupil attending an eligible program part 
        time, basic revenue shall be reduced proportionately, according 
        to the amount of time the pupil attends the program, and the 
        payments to the eligible program and the resident district shall 
        be reduced accordingly.  A pupil for whom payment is made 
        according to this section may not be counted by any district for 
        any purpose other than computation of basic revenue, according 
        to section 124A.22, subdivision 2.  If payment is made for a 
        pupil under this subdivision, a school district shall not 
        reimburse a program under section 126.23 for the same pupil. 
           (b) The department of children, families, and learning 
        shall pay up to 100 percent of the basic revenue to the eligible 
        program if there is an agreement to that effect between the 
        school district and the eligible program. 
           Sec. 23.  Minnesota Statutes 1995 Supplement, section 
        126.23, is amended to read: 
           126.23 [AID FOR PRIVATE CONTRACTED ALTERNATIVE PROGRAMS.] 
           Subdivision 1.  [AID.] 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 district contracting with the private organization must 
        reimburse the provider an amount equal to at least 88 90 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 children, families, and learning shall not make a 
        payment for the same pupil under section 126.22, subdivision 8. 
           Subd. 2.  [RESERVE ACCOUNT.] During the term of the 
        contract to provide educational services under subdivision 1, 
        all state aid under subdivision 1 accrues to the account 
        assigned to the alternative program site and is reserved for 
        that site. 
           Sec. 24.  Minnesota Statutes 1995 Supplement, section 
        128B.03, subdivision 3a, is amended to read: 
           Subd. 3a.  [STATE REVENUES.] The state shall pay to the 
        council for the support of the school all aids, revenues, and 
        grants available to a school district as though the school were 
        a school district.  The aids, revenues, and grants include, but 
        are not limited to, the following: 
           (1) general education revenue, as defined in section 
        124A.22, subdivision 1, including at least compensatory revenue; 
           (2) transportation revenue; 
           (3) capital expenditure facilities revenue; 
           (4) capital expenditure equipment revenue; 
           (5) special education revenue; 
           (6) limited English proficiency aid; 
           (7) career teacher family connections aid; 
           (8) assurance of mastery revenue; 
           (9) school lunch revenue; 
           (10) school milk revenue; 
           (11) health and safety revenue; 
           (12) Indian language and culture grants; 
           (13) arts planning grants; and 
           (14) all other aids, revenues, or grants available to a 
        school district. 
           If there are eligibility requirements for an aid, revenue, 
        or grant, the requirements shall be met in order to obtain the 
        aid, revenue, or grant, except that a requirement to levy shall 
        be waived.  To compute the amount of aid, revenue, or grant 
        requiring a levy, the amount of the levy shall be zero. 
           If a school district obtains revenue from the proceeds of a 
        levy, the council shall be deemed to have levied and the state 
        shall pay aid equal to the amount that would have been levied.  
        The amount shall be approved by the commissioner of children, 
        families, and learning. 
           The proceeds of any aid, grant, or revenue shall be used 
        only as provided in the applicable statute. 
           Sec. 25.  Minnesota Statutes 1994, section 256.736, 
        subdivision 11, is amended to read: 
           Subd. 11.  [CASE MANAGEMENT SERVICES.] (a) The county 
        agency may, to the extent of available resources, enroll 
        targeted caretakers described in subdivision 16 in case 
        management services and for those enrolled shall: 
           (1) Provide an assessment as described in subdivision 10, 
        paragraph (a), clause (14).  As part of the assessment, the case 
        manager shall inform caretakers of the screenings available 
        through the early periodic screening, diagnosis and treatment 
        (EPSDT) program under chapter 256B and preschool screening under 
        chapter 123, and encourage caretakers to have their children 
        screened.  The case manager must work with the caretaker in 
        completing this task; 
           (2) Develop an employability development plan as described 
        in subdivision 10, paragraph (a), clause (15).  The case manager 
        must work with the caretaker in completing this task.  For 
        caretakers who are not literate or who have not completed high 
        school, the first goal for the caretaker should be to complete 
        literacy training or a general equivalency diploma.  Caretakers 
        who are literate and have completed high school shall be 
        counseled to set realistic attainable goals, taking into account 
        the long-term needs of both the caretaker and the caretaker's 
        family; 
           (3) Coordinate services such as child care, transportation, 
        and education assistance necessary to enable the caretaker to 
        work toward the goals developed in clause (2).  The case manager 
        shall refer caretakers to resource and referral services, if 
        available, and shall assist caretakers in securing appropriate 
        child care services.  When a client needs child care services in 
        order to attend a Minnesota public or nonprofit college, 
        university or technical college, the case manager shall contact 
        the appropriate agency to reserve child care funds for the 
        client.  A caretaker who needs child care services in order to 
        complete high school or a general equivalency diploma is 
        eligible for child care under sections 256H.01 to 256H.19; 
           (4) Develop, execute, and monitor a contract between the 
        county agency and the caretaker.  The contract must be based 
        upon the employability development plan described in subdivision 
        10, paragraph (a), clause (15), but must be a separate 
        document.  It must include:  (a) specific goals of the caretaker 
        including stated measurements of progress toward each goal, the 
        estimated length of participation in the program, and the number 
        of hours of participation per week; (b) educational, training, 
        and employment activities and support services provided by the 
        county agency, including child care; and (c) the participant's 
        obligations and the conditions under which the county will 
        withdraw the services provided; 
           The contract must be signed and dated by the case manager 
        and participant and may include other terms as desired or needed 
        by either party.  In all cases, however, the case manager must 
        assist the participant in reviewing and understanding the 
        contract and must ensure that the caretaker has set forth in the 
        contract realistic goals consistent with the ultimate goal of 
        self-sufficiency for the caretaker's family; and 
           (5) Develop and refer caretakers to counseling or peer 
        group networks for emotional support while participating in 
        work, education, or training. 
           (b) In addition to the duties in paragraph (a), for minor 
        parents and pregnant minors, the case manager shall: 
           (1) Ensure that the contract developed under paragraph (a), 
        clause (4), considers all factors set forth in section 257.33, 
        subdivision 2; 
           (2) Assess the housing and support systems needed by the 
        caretaker in order to provide the dependent children with 
        adequate parenting.  The case manager shall encourage minor 
        parents and pregnant minors who are not living with friends or 
        relatives to live in a group home or foster care setting.  If 
        minor parents and pregnant minors are unwilling to live in a 
        group home or foster care setting or if no group home or foster 
        care setting is available, the case manager shall assess their 
        need for training in parenting and independent living skills and 
        when appropriate shall refer them to available counseling 
        programs designed to teach needed skills; and 
           (3) Inform minor parents or pregnant minors of, and assist 
        them in evaluating the appropriateness of, the high school 
        graduation incentives program under section 126.22, including 
        post-secondary enrollment options, and the employment-related 
        and community-based instruction programs.  
           (c) A caretaker may request a conciliation conference to 
        attempt to resolve disputes regarding the contents of a contract 
        developed under this section or a housing and support systems 
        assessment conducted under this section.  The caretaker may 
        request a hearing pursuant to section 256.045 to dispute the 
        contents of a contract or assessment developed under this 
        section.  The caretaker need not request a conciliation 
        conference in order to request a hearing pursuant to section 
        256.045. 
           Sec. 26.  Laws 1995, First Special Session chapter 3, 
        article 1, section 61, is amended to read: 
           Sec. 61.  [FORMULA ALLOWANCE.] 
           Notwithstanding the amount of the formula allowance for 
        fiscal year 1997, in Minnesota Statutes, section 124A.22, 
        subdivision 2, the commissioner shall use the amount of the 
        formula allowance minus $300 for fiscal year 1997 in determining 
        the payments under Minnesota Statutes, sections 123.3514, 
        subdivisions 6 and 8; 6b; and 124A.02, subdivision 21; 126.22; 
        and 126.23. 
           Sec. 27.  Laws 1995, First Special Session chapter 3, 
        article 4, section 29, subdivision 10, is amended to read: 
           Subd. 10.  [FAMILY COLLABORATIVES.] For family 
        collaboratives: 
             $6,000,000      .....     1996
             $6,000,000      .....     1997
           Of the appropriation, $150,000 each year is for grants 
        targeted to assist in providing collaborative children's library 
        service programs.  To be eligible, a family collaborative grant 
        recipient must collaborate with at least one public library and 
        one children's 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. 
           No more than 2.5 percent of the appropriation is available 
        to the state to administer and evaluate the grant program. 
           Any balance in the first year does not cancel but is 
        available in the second year.  An applicant receiving a grant 
        may carry forward any unencumbered money. 
           Sec. 28.  Laws 1995, First Special Session chapter 3, 
        article 8, section 25, subdivision 18, is amended to read: 
           Subd. 18.  [CAREER TEACHER FAMILY CONNECTIONS AID.] For 
        career teacher family connections aid according to Minnesota 
        Statutes, section 124.276: 
             $125,000     .....     1996 
             $125,000 $225,000    .....     1997 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Notwithstanding Minnesota Statutes, section 124.276, 
        subdivision 2, the aid may be used for the increased district 
        contribution to the teachers' retirement association and to FICA 
        resulting from the portion of the teaching contract that is in 
        addition to the standard teaching contract of the district.* 
        (The preceding section was vetoed by the governor.) 
           Sec. 29.  [MINNESOTA COMMISSION ON NATIONAL AND COMMUNITY 
        SERVICE.] 
           The Minnesota commission on national and community service 
        retains responsibility for implementing federal programs under 
        the federal commission on national and community service.  
        Responsibilities of the Minnesota commission on national and 
        community service may only be transferred to the governor's 
        workforce development council under Minnesota Statutes 1995 
        Supplement, section 268.665 after the attorney general has 
        certified that the workforce development council meets all the 
        federal requirements for the commission on national and 
        community service. 
           Notwithstanding Minnesota Statutes 1995 Supplement, section 
        121.705, if the Minnesota commission on national and community 
        service retains responsibility for federal programs under this 
        section, it also retains responsibility for administering the 
        youth works program and state appropriations made for the youth 
        works program under Laws 1995, First Special Session chapter 3, 
        article 4, section 29, subdivisions 19 and 20. 
           Sec. 30.  [PILOT AFTER-SCHOOL ENRICHMENT PROGRAMS.] 
           Subdivision 1.  [ESTABLISHMENT.] A pilot after-school 
        enrichment grant program is established to provide 
        implementation grants to community collaboratives for designated 
        neighborhoods of Minneapolis and St. Paul, and for selected 
        areas outside Minneapolis and St. Paul.  The commissioner of 
        children, families, and learning shall develop criteria for 
        after-school enrichment programs in up to three qualifying 
        neighborhoods in each of the cities, and selected neighborhoods 
        in the rest of the state.  Qualifying neighborhoods are 
        designated by the commissioner under subdivision 2. 
           Subd. 2.  [QUALIFYING NEIGHBORHOODS.] In Minneapolis, the 
        neighborhoods that qualify for designation are the Near North 
        Side, Hawthorne, Sumner-Glenwood, Powderhorn Central, Whittier 
        and Phillips.  In St. Paul, neighborhoods that qualify for 
        designation are Summit-University, Thomas-Dale, North End, 
        Payne-Phalen, Daytons Bluff, and the West Side. 
           Subd. 3.  [PROGRAM OUTCOMES.] The outcomes of the 
        after-school enrichment programs are to: 
           (1) increase the number of children participating in 
        after-school programs who live in the designated neighborhoods; 
           (2) reduce the juvenile crime rate in the designated 
        neighborhoods; 
           (3) reduce the number of police calls involving juveniles 
        during the afternoon after-school hours; 
           (4) increase school attendance; 
           (5) reduce the number of school suspensions; 
           (6) increase the number of youth engaged in community 
        service; 
           (7) increase youth academic achievement; and 
           (8) increase the skills of youth in computers, the arts, 
        athletics, and other activities. 
           Subd. 4.  [PLAN.] By July 1, 1996, a community 
        collaborative, consisting of representatives of community 
        organizations and representatives of the county, city, and 
        school district, shall develop a plan for an after-school 
        enrichment program for children ages nine through 13 who reside 
        in the designated neighborhood to be served.  Reading mentorship 
        programs may be included in the plan.  Each community 
        collaborative developing a plan shall identify points of 
        collaboration with other organizations and resources available 
        to implement an after-school enrichment program.  The plan shall 
        include: 
           (1) collaboration and leverage of community resources that 
        exist and are effective; 
           (2) creative outreach to the children; 
           (3) collaboration of grassroots organizations; 
           (4) local governments and schools acting as resources; 
           (5) community control over the design of the enrichment 
        program; 
           (6) the availability of enrichment activities for a minimum 
        of five days per week after school with future plans to extend 
        to seven days per week; and 
           (7) identification of the sources of nonstate funding to 
        extend the programming beyond the period of the pilot grant. 
           Subd. 5.  [PLAN APPROVAL; GRANTS.] (a) A plan developed by 
        a community collaborative under subdivision 4 shall be submitted 
        to the commissioner of children, family, and learning.  When a 
        collaborative's plan is approved by the commissioner, the 
        commissioner shall award a grant to the community collaborative 
        for the implementation of the plan. 
           Sec. 31.  [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 
        DISCIPLINE POLICIES.] 
           Subdivision 1.  [POLICY.] The legislature acknowledges the 
        importance of teaching students in a regular classroom setting 
        to the extent possible.  Students in an educational setting are 
        expected to behave in a manner that is appropriate for learning 
        to take place.  When students fail to meet behavioral 
        expectations, school discipline policies should penalize 
        students' inappropriate behavior, with the ultimate goal of 
        returning students to their regular classrooms.  Schools should 
        involve parents in collaborative efforts to alter students' 
        inappropriate classroom behavior.  Schools and parents should 
        find ways to ensure that students' inappropriate behavior does 
        not become chronic, necessitating long-term intervention and the 
        need for special services. 
           Subd. 2.  [ESTABLISHMENT.] A grant program for fiscal year 
        1997 is established to develop, implement, and evaluate school 
        discipline policies, consistent with the pupil fair dismissal 
        act under Minnesota Statutes, sections 127.26 to 127.48.  
        Discipline policies, developed under this section, should be 
        designed to enable students to successfully return to the 
        regular classroom setting after being sanctioned for 
        inappropriate behavior.  Discipline policies should focus on 
        early intervention strategies to limit the need for providing 
        regular education students with additional special programs and 
        services. 
           Subd. 3.  [ELIGIBILITY.] An applicant for a grant must be a 
        school site, a school district, a charter school, or a provider 
        of an alternative education program.  To be eligible for a 
        grant, the grant applicant must meet all of the following 
        criteria: 
           (1) develop a plan to mediate issues relating to district 
        or school site codes of conduct that apply to students who are 
        removed from a class or activity period; 
           (2) include in the code of conduct a plan to remove from 
        the regular classroom setting those students who violate the 
        code; 
           (3) provide students who violate the code with an 
        alternative education setting within the school or program site; 
        and 
           (4) make the alternative education setting a constructive 
        experience by using instructional materials tied to educational 
        standards, placing students in an alternative setting outside 
        the normal school day, involving parents in effecting 
        disciplinary measures, or developing intervention techniques 
        such as time outs, among other alternatives. 
           Subd. 4.  [APPLICATION PROCESS.] To obtain a grant to 
        implement constructive school discipline policies, a grant 
        applicant must submit an application to the commissioner of 
        children, families, and learning in the form and manner the 
        commissioner establishes.  The application must describe how the 
        applicant will meet the eligibility criteria under subdivision 
        3.  The commissioner may require the applicant to provide 
        additional information. 
           Subd. 5.  [GRANT AWARDS.] The commissioner may award grants 
        of up to $50,000.  Grant recipients must be located throughout 
        the state.  The commissioner shall make grant awards based on 
        the district's disciplinary experience and on the alternative 
        education settings the grant recipient proposes to use.  Grant 
        recipients must use the grant proceeds to accomplish the 
        purposes of this section. 
           Subd. 6.  [EVALUATION.] The commissioner shall evaluate the 
        grant sites and selected control sites to determine the impact 
        of the constructive discipline policy grant program on measures 
        of student behavior and performance, including, but not limited 
        to, student achievement and attendance, and the impact of the 
        program on the school site, the student body, the classroom, and 
        the school faculty.  The evaluation must also address the 
        financial impact of the program on the district and the school 
        site.  Upon implementing a student code of conduct consistent 
        with this section, the grant recipient must cooperate in 
        evaluating the impact of code policies.  As a part of the 
        evaluation process, the grant recipient must document student 
        and parent response to code policies over at least a three-year 
        period.  The commissioner shall compile for the education 
        committees of the legislature a progress report by February 1, 
        1998, and a final report by February 1, 2000, on the 
        effectiveness and impact of discipline policies. 
           Sec. 32.  [ADULT BASIC EDUCATION STUDY.] 
           The legislature finds that increased adult literacy and 
        access to educational opportunities are necessary for 
        undereducated adults to more fully participate in their families 
        and to become self-sufficient contributors to their communities 
        and the Minnesota economy.  There is a growing recognition that 
        basic education provides the opportunity for adults to learn the 
        skills necessary for fuller participation.  To examine the 
        current and future needs for adult basic education and the 
        resources necessary to meet these identified needs, the 
        commissioner of the department of children, families, and 
        learning shall conduct or contract for a study of adult basic 
        education.  The study, at a minimum, must include the following: 
           (1) an examination of the adult basic education formula 
        under section 124.26; 
           (2) the percentage of full adult basic education formula 
        funding that is prorated and the impact of proration on 
        programming and service delivery; 
           (3) the hold harmless provision based on an adult basic 
        education project's 1991-1992 state aid, and the impact on 
        program delivery; 
           (4) the distribution of funds under the adult basic 
        education formula and how closely it matches the need for adult 
        basic education throughout the state; 
           (5) an inventory of federal, state and local projects and 
        programs with skills and education programming for adults, 
        including education programs operated by the department of 
        corrections for inmates; and 
           (6) an examination of the changing role for adult basic 
        education with potential changes in income maintenance programs 
        and other aspects of welfare reform. 
           The commissioner shall report the findings of the study to 
        the chairs of the education committees of the legislature by 
        December 1, 1996.  The report must contain recommendations for 
        funding of adult basic education and for consolidation or 
        coordination of adult education programming. 
           Sec. 33.  [SPECIAL COMMUNITY SERVICE LEVY.] 
           In addition to other levies it is authorized to make each 
        year, independent school district No. 2190, Yellow Medicine 
        East, may levy on the property in the former school district No. 
        892, Clarkfield, for the costs of operating the district-owned 
        swimming pool in Clarkfield.  The proceeds of this levy must be 
        deposited in the district's community service fund.  The levy 
        may not exceed the net actual cost operation of the pool in the 
        previous year.  Net actual costs are defined as operating costs 
        less operating revenues. 
           Sec. 34.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [YOUTH ENRICHMENT GRANTS.] For youth enrichment 
        grants: 
             $5,000,000     .....     1996 
           The commissioner may use up to five percent of this 
        appropriation to provide technical assistance to community 
        organizations. 
           The commissioner may use up to 20 percent of this 
        appropriation for grants to neighborhoods outside of Minneapolis 
        and St. Paul that meet the criteria established by the 
        commissioner under section 30. 
           Of the amount for St. Paul, the commissioner may make a 
        grant to independent school district No. 625 for operating and 
        start-up costs of community-based charter schools sponsored by 
        the district. 
           This appropriation is available until June 30, 1997. 
           Subd. 3.  [DISCIPLINE.] For grants to implement 
        constructive school discipline policies: 
             $300,000     .....     1997
           Grant recipients may expend the grant proceeds over a 
        three-year period.  Of this amount, up to $20,000 is for 
        evaluation under section 31, subdivision 6.* (The preceding 
        subdivision was vetoed by the governor.) 
           Subd. 4.  [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 
        grant for community-based charter schools located in independent 
        school district No. 625, St. Paul: 
             $300,000     .....     1997 
           The commissioner may establish criteria and any reporting 
        or match requirements for the grant under this section. 
           Subd. 5.  [AID FOR CONTRACTED ALTERNATIVE PROGRAMS.] For 
        aid for contracted alternative programs under sections 22 and 23:
             $330,000     .....     1997 
           The appropriation is 85 percent of the entitlement for 
        fiscal year 1997. 
           Sec. 35.  [EFFECTIVE DATE.] 
           Section 20 is effective June 30, 1996.  Sections 29 and 32 
        are effective the day following final enactment. 
                                   ARTICLE 5
                                   FACILITIES 
           Section 1.  Minnesota Statutes 1994, section 124.239, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
        district that participates in the alternative facilities bonding 
        and levy program is not eligible to levy and cannot receive aid 
        for any capital projects under sections 124.83 and 124.84 for 
        any capital projects funded under this section.  A district may 
        levy and receive aid for health and safety environmental 
        management costs and health and safety regulatory, hazard 
        assessment, record keeping, and maintenance programs as defined 
        in section 124.494, subdivision 2, and approved by the 
        commissioner. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        124.243, subdivision 2, is amended to read: 
           Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) 
        Capital expenditure facilities previous formula revenue for a 
        district equals $128 times its actual pupil units for the school 
        year. 
           (b) For fiscal years 1996, capital expenditure facilities 
        revenue for a district equals $100 times the district's 
        maintenance cost index times its actual pupil units for the 
        school year. 
           (c) Notwithstanding paragraph (b), for fiscal year 1996, 
        the revenue for each district equals 25 percent of the amount 
        determined in paragraph (b) plus 75 percent of the previous 
        formula revenue. 
           (d) Notwithstanding paragraph (b), for fiscal year 1997, 
        the revenue for each district equals 50 percent of the amount 
        determined in paragraph (b) plus 50 percent of the previous 
        formula revenue. 
           (e) Notwithstanding paragraph (b), for fiscal year 1998, 
        the revenue for each district equals 75 percent of the amount 
        determined in paragraph (b) plus 25 percent of the previous 
        formula revenue. 
           (f) The revenue in paragraph (b) for a district that 
        operates a program under section 121.585, is increased by an 
        amount equal to $15 times the number of actual pupil units at 
        the site where the program is implemented. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        124.2445, is amended to read: 
           124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
           The board of a school district may issue certificates of 
        indebtedness or capital notes subject to the school district 
        debt limits to purchase vehicles other than school buses, 
        computers, telephone systems, cable equipment, photocopy and 
        office equipment, technological equipment for instruction, and 
        other capital equipment having an expected useful life at least 
        as long as the terms of the certificates or notes.  The 
        certificates or notes must be payable in not more than five 
        years and must be issued on the terms and in the manner 
        determined by the board.  The certificates or notes may be 
        issued by resolution and without the requirement for an 
        election.  The certificates or notes are general obligation 
        bonds for purposes of section 124.755.  A tax levy must be made 
        for the payment of the principal and interest on the 
        certificates or notes, in accordance with section 475.61, as in 
        the case of bonds.  That The sum of the tax levy levies under 
        this section and section 124.2455, for each year must not exceed 
        the amount of the district's total operating capital revenue for 
        the year the initial debt service levies are certified.  The 
        district's general education levy for each year must be reduced 
        by the amount of the tax levies for debt service certified for 
        each year for payment of the principal and interest on the 
        certificates or notes as required by section 475.61.  
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        124.2455, is amended to read: 
           124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
           (a) In addition to other bonding authority, with approval 
        of the commissioner, a school district may issue general 
        obligation bonds for certain capital projects under this 
        section.  The bonds must be used only to make capital 
        improvements including: 
           (1) under section 124.243, subdivision 6, capital 
        expenditure facilities 124A.22, subdivision 11, total operating 
        capital revenue uses specified in clauses (4), (6), (7), (8), 
        (9), and (10); 
           (2) the cost of energy modifications; 
           (3) improving handicap accessibility to school buildings; 
        and 
           (4) bringing school buildings into compliance with life and 
        safety codes and fire codes.  
           (b) Before a district issues bonds under this subdivision, 
        it must publish notice of the intended projects, the amount of 
        the bond issue, and the total amount of district indebtedness.  
           (c) A bond issue tentatively authorized by the board under 
        this subdivision becomes finally authorized unless a petition 
        signed by more than 15 percent of the registered voters of the 
        school district is filed with the school board within 30 days of 
        the board's adoption of a resolution stating the board's 
        intention to issue bonds.  The percentage is to be determined 
        with reference to the number of registered voters in the school 
        district on the last day before the petition is filed with the 
        school board.  The petition must call for a referendum on the 
        question of whether to issue the bonds for the projects under 
        this section.  The approval of 50 percent plus one of those 
        voting on the question is required to pass a referendum 
        authorized by this section. 
           (d) The bonds may be issued in a principal amount, that 
        when combined with interest thereon, will be paid off with not 
        more than 50 percent of current and anticipated revenue for 
        capital facilities under this section or a successor section for 
        the current year plus projected revenue not greater than that of 
        the current year for the next ten years.  Once finally 
        authorized, the district must set aside the lesser of the amount 
        necessary to make the principal and interest payments or 50 
        percent of the current year's revenue for capital facilities 
        under this section or a successor section each year in a 
        separate account until all principal and interest on the bonds 
        is paid.  The district must annually transfer this amount from 
        its capital fund to the debt redemption fund.  The bonds must be 
        paid off within ten years of issuance.  The bonds must be issued 
        in compliance with chapter 475, except as otherwise provided in 
        this section.  A tax levy must be made for the payment of 
        principal and interest on the bonds in accordance with section 
        475.61.  The sum of the tax levies under this section and 
        section 124.2455, for each year must not exceed the amount of 
        the district's total operating capital revenue for the year the 
        initial debt service levies are certified.  The district's 
        general education levy for each year must be reduced by the 
        amount of the tax levies for debt service certified for each 
        year for payment of the principal and interest on the bonds.  
           (e) Notwithstanding paragraph (d), bonds issued by a 
        district within the first five years following voter approval of 
        a combination according to section 122.243, subdivision 2, bonds 
        may be issued in a principal amount, that when combined with 
        interest thereon, will be paid off with not more than 50 percent 
        of current and anticipated revenue for capital facilities under 
        this section or a successive section for the current year plus 
        projected revenue not greater than that of the current year for 
        the next 20 years must be paid off within 20 years of issuance.  
        All the other provisions and limitation of paragraph (d) apply. 
           Sec. 5.  Minnesota Statutes 1994, section 124.91, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TO LEASE BUILDING OR LAND.] When a 
        district finds it economically advantageous to rent or lease a 
        building or land for any instructional purposes or for school 
        storage or furniture repair, and it determines that the capital 
        expenditure facilities revenues authorized under section 
        sections 124.243 and 124A.22, subdivision 10, are insufficient 
        for this purpose, it may apply to the commissioner for 
        permission to make an additional capital expenditure levy for 
        this purpose.  An application for permission to levy under this 
        subdivision must contain financial justification for the 
        proposed levy, the terms and conditions of the proposed lease, 
        and a description of the space to be leased and its proposed 
        use.  The criteria for approval of applications to levy under 
        this subdivision must include:  the reasonableness of the price, 
        the appropriateness of the space to the proposed activity, the 
        feasibility of transporting pupils to the leased building or 
        land, conformity of the lease to the laws and rules of the state 
        of Minnesota, and the appropriateness of the proposed lease to 
        the space needs and the financial condition of the district.  
        The commissioner must not authorize a levy under this 
        subdivision in an amount greater than the cost to the district 
        of renting or leasing a building or land for approved purposes.  
        The proceeds of this levy must not be used for custodial or 
        other maintenance services.  A district may not levy under this 
        subdivision for the purpose of leasing or renting a 
        district-owned building to itself. 
           Sec. 6.  Minnesota Statutes 1994, section 124.91, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [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) 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.  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) For the purposes of 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) For the purposes of this subdivision, any references in 
        subdivision 1 to building or land shall include personal 
        property. 
           Sec. 7.  Minnesota Statutes 1994, 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, alternative 
        facilities levies under section 124.239, subdivision 5, 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; 
           (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. 8.  Minnesota Statutes 1995 Supplement, section 
        124.961, is amended to read: 
           124.961 [DEBT SERVICE APPROPRIATION.] 
           (a) $30,054,000 in fiscal year 1996, $27,370,000 
        $28,162,000 in fiscal year 1997, and $32,200,000 $33,948,000 in 
        fiscal year 1998 and each year thereafter is appropriated from 
        the general fund to the commissioner of children, families, and 
        learning for payment of debt service equalization aid under 
        section 124.95.  The 1998 appropriation includes 
        $4,830,000 $4,970,000 for 1997 and $27,370,000 $28,978,000 for 
        1998. 
           (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. 9.  Minnesota Statutes 1994, section 128D.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NO ELECTION.] Subject to the provisions of 
        subdivisions 7 to 10, the school district may also by a 
        two-thirds majority vote of all the members of its board of 
        education and without any election by the voters of the 
        district, issue and sell in each calendar year general 
        obligation bonds of the district in an amount not to 
        exceed one-half of one five and one-tenth per cent of the net 
        tax capacity of the taxable property in the district (plus, for 
        calendar years 1990 to 1996 2003, an amount not to exceed 
        $7,500,000; with an additional provision that any amount of 
        bonds so authorized for sale in a specific year and not sold can 
        be carried forward and sold in the year immediately following); 
        provided, however, that the board shall submit the list of 
        projects and undertakings to be financed by a proposed issue to 
        the city planning commission as provided in subdivision 10, 
        paragraph (b).  
           Sec. 10.  Minnesota Statutes 1994, section 128D.11, 
        subdivision 5, is amended to read: 
           Subd. 5.  [USE OF PROCEEDS.] The proceeds of the sale of 
        the bonds shall be used only for the rehabilitating, remodeling, 
        expanding, and equipping of existing school buildings and for 
        the acquisition of sites, construction, and equipping of new 
        school buildings, and for acquisition and betterment purposes, 
        and no part of the proceeds shall be used for maintenance. 
           Sec. 11.  Minnesota Statutes 1994, section 128D.11, 
        subdivision 8, is amended to read: 
           Subd. 8.  [NET DEBT LIMIT.] The school district shall not 
        be subject to a net debt in excess of ten 102 percent of the net 
        tax capacity of all taxable property therein. 
           Sec. 12.  Laws 1995, First Special Session chapter 3, 
        article 5, section 20, subdivision 5, is amended to read: 
           Subd. 5.  [DEBT SERVICE AID.] For debt service aid 
        according to Minnesota Statutes, section 124.95, subdivision 5: 
             $30,054,000     .....     1996
             $27,370,000 $28,162,000     .....     1997
           The 1996 appropriation includes $30,054,000 for 1996. 
           The 1997 appropriation includes $27,370,000 $28,162,000 for 
        1997.  This appropriation is 85 percent of the aid entitlement 
        for 1997. 
           Sec. 13.  [136D.94] [REFUNDING BONDS.] 
           Sections 136D.281, subdivision 8, 136D.741, subdivision 8, 
        and 136D.87, subdivision 8, do not apply to bonds issued solely 
        for refunding purposes. 
           Sec. 14.  Laws 1995, First Special Session chapter 3, 
        article 5, section 20, subdivision 6, is amended to read: 
           Subd. 6.  [PLANNING GRANT.] (a) For a grant to for 
        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, and neighboring school 
        districts to plan delivery of educational services: 
             $40,000     .....     1996 
           The grant is may also be used 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 students served by these districts.  The joint 
        powers group districts must consult with neighboring districts 
        including independent school district Nos. 324, Jackson; 177, 
        Windom; and 518, Worthington, and include facility needs and 
        availability in those districts in the group's planning. 
           (b) A portion of the appropriation must be used to conduct 
        an independent survey of parents as to their preference for a 
        school of attendance for their children if a single high school 
        is located within this group of districts.  The survey of 
        attendance preferences must include the single high school and 
        high schools in neighboring districts. 
           (c) This appropriation is available until June 30, 1997. 
           Sec. 15.  Laws 1995, First Special Session chapter 3, 
        article 5, section 20, subdivision 7, is amended to read: 
           Subd. 7.  [PRESTON-FOUNTAIN; HARMONY DISTRICT.] For a grant 
        to the new school district comprised of independent school 
        district No. 233, Preston-Fountain, and independent school 
        district No. 228, Harmony: 
                $70,000     .....     1996 
                $70,000     .....     1997 
           This grant These grants must be placed in the district's 
        debt redemption fund.  The department must reduce the new 
        district debt service levy levies by this amount these amounts. 
           Debt service equalization aid for fiscal year 1997 shall 
        not be reduced as a result of the grant. 
           Sec. 16.  [APPROVAL FOR DEBT SERVICE EQUALIZATION AID:  
        ROYALTON.] 
           Notwithstanding Minnesota Statutes, section 124.95, 
        subdivision 2, debt service levy attributable to bonds 
        authorized at an election conducted in 1995 by independent 
        school district No. 485, Royalton, qualifies for debt service 
        equalization aid.  
           Sec. 17.  [HEALTH AND SAFETY REVENUE; HIBBING.] 
           Notwithstanding Minnesota Statutes, section 124.83, 
        subdivision 6, independent school district No. 701, Hibbing, 
        that has a high school building on the National Historic 
        Register, may use health and safety revenue for the construction 
        of a stair tower with classroom space but only to the extent the 
        revenue is substituted for other expenditures required under 
        orders from the fire marshal. 
           Sec. 18.  [LEVY AUTHORITY.] 
           Subdivision 1.  [DELAVAN.] For property taxes payable in 
        1997 only, independent school district No. 218, Delavan, or its 
        successor district, may levy up to $97,000 on the property in 
        independent school district No. 218.  This levy may be made only 
        if independent school district No. 218 has voted to consolidate 
        with independent school district No. 2148, Blue Earth.  Revenue 
        received according to this subdivision must be used for capital 
        or maintenance purposes for facilities in independent school 
        district No. 218. 
           Subd. 2.  [ELMORE.] For property taxes payable in 1997 
        only, independent school district No. 219, Elmore, or its 
        successor district, may levy up to $116,000 on the property in 
        independent school district No. 219.  This levy may be made only 
        if independent school district No. 219 has voted to consolidate 
        with independent school district No. 2148, Blue Earth.  Revenue 
        received according to this subdivision must be used for capital 
        or maintenance purposes for facilities in independent school 
        district No. 219. 
           Subd. 3.  [BLUE EARTH.] For property taxes payable in 1997 
        only, independent school district No. 2148, Blue Earth, or its 
        successor district, may levy up to $58,000 on the property in 
        independent school district No. 2148.  This levy may be made 
        only if independent school district No. 2148 has voted to 
        consolidate with independent school districts Nos. 218, Delavan, 
        and 219, Elmore.  Revenue received according to this subdivision 
        must be used for capital or maintenance purposes for facilities 
        in independent school district No. 2148. 
           Subd. 4.  [NO REFERENDUM LEVY.] Districts making a levy 
        according to this section may not make a levy according to 
        Minnesota Statutes, section 124A.03.  
           Sec. 19.  [NORTH BRANCH LEASE LEVY.] 
           Notwithstanding the instructional purposes limitation of 
        Minnesota Statutes, section 124.91, subdivision 1, independent 
        school district No. 138, North Branch, may apply to the 
        commissioner of children, families, and learning to make an 
        additional capital levy under Minnesota Statutes, section 
        124.91, subdivision 1, to rent or lease a building or land for 
        administrative purposes.  The levy may not exceed the amount 
        necessary to obtain space similar in size and quality to the 
        office space vacated for instructional purposes. 
           Sec. 20.  [SCHOOL DISTRICTS; BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 316, Greenway-Coleraine, may issue bonds in an 
        aggregate principal amount not exceeding $500,000; and 
        independent school district No. 696, Ely, may issue bonds in an 
        aggregate amount not exceeding $1,000,000; and independent 
        school district No. 701, Hibbing, may issue bonds in an 
        aggregate principal amount not exceeding $2,200,000; and 
        independent school district No. 706, Virginia, may issue bonds 
        in an aggregate principal amount not exceeding $6,000,000; and 
        independent school district No. 2142, St. Louis county, may 
        issue bonds in an aggregate principal amount not exceeding 
        $3,000,000; and independent school district No. 2154, 
        Eveleth-Gilbert, may issue bonds in an aggregate principal 
        amount not exceeding $3,600,000; and independent school district 
        No. 2711, Mesabi East, may issue bonds in an aggregate principal 
        amount not exceeding $800,000 in addition to any bonds already 
        issued or authorized, to provide funds to design, construct, 
        equip, furnish, remodel, rehabilitate, and acquire land for 
        school facilities and buildings, or abate, remove, and dispose 
        of asbestos, polychlorinated biphenyls or petroleum as defined 
        in Minnesota Statutes, section 115C.02, and make repairs related 
        to the abatement, removal, or disposal of these substances.  
        They may spend the proceeds of the bond sale for those purposes 
        and any architect, engineer, and legal fees incidental to those 
        purposes or the sale.  The bond shall be authorized, issued, 
        sold, executed, and delivered in the manner provided by 
        Minnesota Statutes, chapter 475, including submission of the 
        proposition to the electors under Minnesota Statutes, section 
        475.58.  After authorization by the electors under Minnesota 
        Statutes, section 475.58, a resolution of the board levying 
        taxes for the payment of bonds and interest on them and pledging 
        the proceeds of the levies for the payment of the bonds and 
        interest on them shall be deemed to be in compliance with the 
        provisions of Minnesota Statutes, chapter 475, with respect to 
        the levying of taxes for their payment. 
           Subd. 2.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to section 298.28, 
        subdivisions 9 and 11, in equal shares, an amount sufficient to 
        pay when due 80 percent of the principal and interest on the 
        bonds issued pursuant to subdivision 1.  If the annual 
        distribution to the northeast Minnesota economic protection 
        trust is insufficient to pay its share after fulfilling any 
        obligations of the trust under section 298.225 or 298.293, the 
        deficiency shall be appropriated from the taconite environmental 
        protection fund. 
           Subd. 3.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received pursuant to subdivision 2, 
        they shall be made good by general levies, not subject to limit, 
        on all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.64.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 4.  [DISTRICT LEVY.] The school board shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 20 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 5.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 6.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd 7.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 2 shall terminate upon payment or 
        maturity of the last of those bonds. 
           Subd. 8.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after February 28, 1998, unless they are 
        issued under a contract in effect on or before February 28, 1998.
           Subd. 9.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 316 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3; and for independent school district No. 696 the 
        day after its governing body complies with Minnesota Statutes, 
        section 645.021, subdivision 3; and for independent school 
        district No. 701 the day after its governing body complies with 
        Minnesota Statutes, section 645.021, subdivision 3; and for 
        independent school district No. 706 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3; and for independent school district No. 2142 the 
        day after its governing body complies with Minnesota Statutes, 
        section 645.021, subdivision 3; and for independent school 
        district No. 2154 the day after its governing body complies with 
        Minnesota Statutes, section 645.021, subdivision 3; and for 
        independent school district No. 2711 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 21.  [COOK COUNTY SCHOOL DISTRICT BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 166, Cook county, may issue bonds in an aggregate 
        principal amount not exceeding $9,240,000. 
           Subd. 2.  [USES; PROCESS.] The bonds authorized under 
        subdivision 1 may be issued in addition to any bonds already 
        issued or authorized.  The proceeds of the bonds shall be used 
        to provide funds to design, construct, equip, furnish, remodel, 
        rehabilitate, and acquire land for school facilities and 
        buildings and to pay any architect, engineer and legal fees 
        incidental to those purposes or to the sale of bonds.  Except as 
        permitted by this section, the bonds shall be authorized, 
        issued, sold, executed, and delivered in the manner provided by 
        Minnesota Statutes, chapter 475.  A referendum on the question 
        of issuing the bonds authorized under subdivision 1 is 
        required.  A resolution of the board levying taxes for the 
        payment of the bonds and interest on them shall be deemed to be 
        in compliance with the provisions of Minnesota Statutes, chapter 
        475 with respect to the levying of taxes for their payment. 
           Subd. 3.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to Minnesota 
        Statutes, section 298.28, subdivisions 9 and 11, in equal 
        shares, an amount sufficient to pay when due 70 percent of the 
        principal and interest on the bonds issued under subdivision 1.  
        If the annual distribution to the northeast Minnesota economic 
        protection trust is insufficient to pay its share after 
        fulfilling any obligations of the trust under Minnesota 
        Statutes, section 298.225 or 298.293, the deficiency shall be 
        appropriated from the taconite environmental protection fund. 
           Subd. 4.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received pursuant to subdivision 3, 
        they shall be satisfied by general levies, not subject to limit, 
        on all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.74.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 5.  [DISTRICT LEVY.] The school board of the school 
        district authorized to issue bonds under subdivision 1 shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 30 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 6.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 7.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd. 8.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 3 shall terminate upon payment or 
        maturity of the last of the bonds issued under this section. 
           Subd. 9.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after February 28, 1998, unless they are 
        issued under a contract in effect on or before February 28, 1998.
           Subd. 10.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 166 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 22.  [GRAND RAPIDS SCHOOL DISTRICT BONDS.] 
           Subdivision 1.  [AUTHORIZATION.] Independent school 
        district No. 318, Grand Rapids, may issue bonds in an aggregate 
        principal amount not exceeding $5,600,000, in addition to any 
        bonds already issued or authorized other than bonds authorized 
        in Laws 1992, chapter 499, article 5, section 29, but not issued 
        by February 15, 1996, to provide funds to design, construct, 
        equip, furnish, remodel, rehabilitate, and acquire land for 
        school facilities and buildings.  The school district may not 
        issue any of the bonds authorized in this subdivision unless the 
        district expends at least $100,000 of the proceeds of the bonds 
        for capital improvements for the industrial technology program 
        at Big Fork.  It may spend the proceeds of the bond sale for 
        those purposes and any architects', engineers', and legal fees 
        incidental to those purposes or the sale.  Except as permitted 
        by this section, the bonds shall be authorized, issued, sold, 
        executed, and delivered in the manner provided by Minnesota 
        Statutes, chapter 475.  A resolution of the board levying taxes 
        for the payment of the bonds and interest on them as authorized 
        by this section and pledging the proceeds of the levies for the 
        payment of the bonds and interest on them shall be deemed to be 
        in compliance with the provisions of Minnesota Statutes, chapter 
        475, with respect to the levying of taxes for their payment. 
           Subd. 2.  [APPROPRIATION.] There is annually appropriated 
        from the distribution of taconite production tax revenues to the 
        taconite environmental protection fund pursuant to Minnesota 
        Statutes, section 298.28, subdivision 11, and to the northeast 
        Minnesota economic protection trust pursuant to Minnesota 
        Statutes, section 298.28, subdivisions 9 and 11, in equal 
        shares, an amount sufficient to pay when due 80 percent of the 
        principal and interest on the bonds issued pursuant to 
        subdivision 1.  If the annual distribution to the northeast 
        Minnesota economic protection trust is insufficient to pay its 
        share after fulfilling any obligations of the trust under 
        Minnesota Statutes, section 298.225 or 298.293, the deficiency 
        shall be appropriated from the taconite environmental protection 
        fund. 
           Subd. 3.  [DISTRICT OBLIGATIONS.] Bonds issued under 
        authority of this section shall be the general obligations of 
        the school district, for which its full faith and credit and 
        unlimited taxing powers shall be pledged.  If there are any 
        deficiencies in the amount received pursuant to subdivision 2, 
        they shall be made good by general levies, not subject to limit, 
        on all taxable properties in the district in accordance with 
        Minnesota Statutes, section 475.64.  If any deficiency levies 
        are necessary, the school board may effect a temporary loan or 
        loans on certificates of indebtedness issued in anticipation of 
        them to meet payments of principal or interest on the bonds due 
        or about to become due. 
           Subd. 4.  [DISTRICT LEVY.] The school board shall by 
        resolution levy on all property in the school district subject 
        to the general ad valorem school tax levies, and not subject to 
        taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
        direct annual ad valorem tax for each year of the term of the 
        bonds in amounts that, if collected in full, will produce the 
        amounts needed to meet when due 20 percent of the principal and 
        interest payments on the bonds.  A copy of the resolution shall 
        be filed, and the necessary taxes shall be extended, assessed, 
        collected, and remitted in accordance with Minnesota Statutes, 
        section 475.61. 
           Subd. 5.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
        section shall be disregarded in the calculation of any other tax 
        levies or limits on tax levies provided by other law. 
           Subd. 6.  [BONDING LIMITATIONS.] Bonds may be issued under 
        authority of this section notwithstanding any limitations upon 
        the indebtedness of a district, and their amounts shall not be 
        included in computing the indebtedness of a district for any 
        purpose, including the issuance of subsequent bonds and the 
        incurring of subsequent indebtedness. 
           Subd. 7.  [TERMINATION OF APPROPRIATION.] The appropriation 
        authorized in subdivision 2 terminates upon payment or maturity 
        of the last of those bonds. 
           Subd. 8.  [BOND ISSUE REQUIREMENT.] No bonds may be issued 
        under this section after February 28, 1998, unless they are 
        issued under a contract in effect on or before February 28, 1998.
           Subd. 9.  [LOCAL APPROVAL.] This section is effective for 
        independent school district No. 318 the day after its governing 
        body complies with Minnesota Statutes, section 645.021, 
        subdivision 3. 
           Sec. 23.  [COOK COUNTY CAPITAL FACILITIES BONDS.] 
           Notwithstanding Minnesota Statutes 1995 Supplement, section 
        124.2455, paragraph (d), bonds issued by independent school 
        district No. 166, Cook county, pursuant to Minnesota Statutes, 
        section 124.2455, must be paid off within 20 years of issuance.  
        All the other provisions and limitations of Minnesota Statutes 
        1995 Supplement, section 124.2455, paragraph (d) apply. 
           Sec. 24.  [BONDS PAID FROM TACONITE PRODUCTION TAX 
        REVENUES.] 
           Subdivision 1.  [REFUNDING BONDS.] The appropriation of 
        funds from the distribution of taconite production tax revenues 
        to the taconite environmental protection tax fund and the 
        northeast Minnesota economic protection fund made by Laws 1988, 
        chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 
        329, article 5, section 20, Laws 1990, chapter 604, article 8, 
        section 13, Laws 1992, chapter 499, article 5, section 29, and 
        by sections 18 to 20, shall continue to apply to bonds issued 
        under Minnesota Statutes, chapter 475, to refund bonds 
        originally issued pursuant to those chapters. 
           Subd. 2.  [LOCAL PAYMENTS.] School districts that are 
        required in Laws 1988, chapter 718, article 7, sections 62 and 
        63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, 
        chapter 604, article 8, section 13, Laws 1992, chapter 499, 
        article 5, section 29, and by sections 18 to 20, to impose 
        levies to pay debt service on the bonds issued under those 
        provisions to the extent the principal and interest on the bonds 
        is not paid by distributions from the taconite environmental 
        protection fund and the northeast Minnesota economic protection 
        trust, may pay their portion of the principal and interest from 
        any funds available to them.  To the extent a school district 
        uses funds other than the proceeds of a property tax levy to pay 
        its share of the principal and interest on the bonds, the 
        requirement to impose a property tax to pay the local share does 
        not apply to the school district. 
           Sec. 25.  [TAXPAYER NOTIFICATION.] 
           Subdivision 1.  [APPLICABILITY.] This section applies only 
        to newly authorized bonding authority granted under section 
        128D.11, subdivision 3, and applies only to such bonds issued 
        for calendar years 1997 to 2003. 
           Subd. 2.  [NOTICE.] (a) A school board must prepare a 
        notice of the public meeting on the proposed sale of all or any 
        of the bonds and mail the notice to each postal patron residing 
        within the school district.  The notice must be mailed at least 
        15 days but not more than 30 days before the meeting.  Notice of 
        the meeting must also be posted in the administrative office of 
        the school district and must be published twice during the 14 
        days before the meeting in the official newspaper of the city in 
        which the school district is located. 
           (b) The notice must contain the following information: 
           (1) the proposed dollar amount of bonds to be issued; 
           (2) the dollar amount of the levy increase necessary to pay 
        the principal and interest on the newly authorized bonds; 
           (3) the estimated levy amount and net tax capacity rate 
        necessary to make the debt service payments on any existing 
        outstanding debt; 
           (4) the projected effects on individual property types; and 
           (5) the required levy and principal and interest on all 
        outstanding bonds in addition to the bonds proposed under clause 
        (1). 
           (c) To comply with paragraph (b), clause (4), the notice 
        must show the projected annual dollar increase and net tax 
        capacity rate increase for a representative range of residential 
        homestead, residential nonhomestead, apartments, and 
        commercial-industrial properties located within each state 
        senate district in the school district. 
           Subd. 3.  [BOND AUTHORIZATION.] A school board may vote to 
        issue bonds for calendar years 1997 to 2003 only after complying 
        with the requirements of subdivision 2. 
           Sec. 26.  [ELIGIBLE DEBT SERVICE REVENUE; DULUTH.] 
           Notwithstanding Minnesota Statutes, section 124.95, 
        subdivision 1, paragraph (a), the eligible debt service revenue 
        for independent school district No. 709, Duluth, shall not be 
        reduced below the amount of the alternative facilities levy 
        under Minnesota Statutes, section 124.239, subdivision 5, 
        paragraph (b), as a result of debt service excess attributable 
        to transfers from the health and safety account to the debt 
        redemption fund approved by the commissioner of children, 
        families, and learning in 1993. 
           Sec. 27.  [SLEEPY EYE.] 
           In addition to other levies, for taxes payable in 1997 
        through 2001, independent school district No. 84, Sleepy Eye, 
        may levy a total cumulative amount of up to $66,000 for the 
        costs associated with converting its heating system from 
        district heat to a boiler system. 
           Sec. 28.  [SPECIAL LEVY; KASSON-MANTORVILLE.] 
           Independent school district No. 204, Kasson-Mantorville, 
        may levy an amount not to exceed $210,000.  This levy may be 
        spread over 15 years. 
           Sec. 29.  [EFFECTIVE DATE.] 
           (a) Sections 6, 13, 14, 17, and 24 are effective the day 
        following final enactment. 
           (b) Sections 8, 12, and 16 are effective the day following 
        final enactment and apply to debt service aid payments for 
        fiscal year 1997, and thereafter. 
           (c) Sections 9 and 11 are effective retroactive to August 
        1, 1994. 
           (d) Sections 1, 7, 19, and 26 are effective for revenue for 
        fiscal year 1998 and thereafter. 
                                   ARTICLE 6 
                     EDUCATION ORGANIZATION AND COOPERATION 
           Section 1.  Minnesota Statutes 1994, 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 except an agreement to provide 
        building space according to paragraph (f), including a joint 
        powers agreement, or 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 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. 
           (f) A school district that is a member of a cooperative 
        unit as defined in subdivision 19b, paragraph (d), may obligate 
        itself to participate in and provide financial support for an 
        agreement with a cooperative unit to provide school building 
        space for a term not to exceed two years with an option on the 
        part of the district to renew for an additional two years. 
           Sec. 2.  Minnesota Statutes 1994, section 123.3514, 
        subdivision 9, is amended to read: 
           Subd. 9.  [EXCEPTION; INTERMEDIATE DISTRICTS.] A secondary 
        pupil who is a resident of a member district of an intermediate 
        district, as defined in section 136C.02, subdivision 7 136D.01, 
        may not enroll in that intermediate district's vocational 
        program as a post-secondary pupil under this section when the 
        intermediate district operates a secondary program at a college 
        facility and secondary students have access to the 
        post-secondary curriculum and receive high school and college 
        credit for successfully completing the program. 
           Sec. 3.  Laws 1995, First Special Session chapter 3, 
        article 6, section 17, subdivision 2, is amended to read: 
           Subd. 2.  [SINGLE BOARD.] The districts shall provide in 
        the enhanced pairing agreement that the governance of the 
        districts will be by the combined membership of the separate 
        boards acting as a single board for purposes of quorum and 
        passing resolutions.  A quorum must include a minimum of one 
        member from each of the separate boards.  The membership of the 
        separate boards may be reduced to five four members in a manner 
        consistent with Minnesota Statutes, section 123.33, subdivision 
        1.  The actions reserved for the separate boards shall be 
        ratification of amendments to the agreement, serving a notice of 
        withdrawal from the agreement, and other items reserved for the 
        separate boards as defined in the agreement. 
           Sec. 4.  Laws 1995, First Special Session chapter 3, 
        article 6, section 17, subdivision 4, is amended to read: 
           Subd. 4.  [FINANCIAL.] (a) Fiscal operations shall be 
        merged under the enhanced pairing agreement, and the single 
        board shall be the fiscal agent to meet reporting requirements.  
        The department of education children, families, and learning 
        shall assign a single identification number to apply to the 
        districts subject to the agreement.  Aid entitlements and levy 
        limitations shall be the sum of the amounts computed separately 
        for each of the districts participating in the enhanced pairing 
        agreement.  Levies shall be made jointly except for levies under 
        Minnesota Statutes, sections 124A.03 and 124.97 by the single 
        board and shall be spread on all taxable property in the 
        districts participating in the enhanced pairing agreement.  
        Districts subject to the agreement shall be considered a single 
        independent school district for purposes of fees or dues 
        assessments. 
           (b) Notwithstanding paragraph (a), the single board may 
        spread a levy under Minnesota Statutes, section 124A.03, 
        approved before January 1, 1996, and levies under sections 
        124.2714, 124.83, 124.84, and 124.97, on the property which is 
        taxable in each school district participating in the enhanced 
        pairing agreement according to the separate levy limitations 
        computed for each district.  The single board shall certify to 
        the county auditor and the department of children, families, and 
        learning the amount of the levy to be spread on the taxable 
        property in each district according to this paragraph. 
           (c) Title to all the unattached property and all cash 
        reserves of any district subject to the enhanced pairing 
        agreement shall become the property of the single board unless 
        otherwise provided for in the agreement.  All legally valid and 
        enforceable claims and contract obligations pass to the single 
        board.  For purposes of litigation, the districts subject to the 
        agreement may be recognized singly or jointly.  If the agreement 
        dissolves or a board withdraws from the agreement, the 
        commissioner shall divide assets and liabilities of the single 
        board proportionately based on the weighted average daily 
        membership over the last three years. 
           Sec. 5.  Laws 1995, First Special Session chapter 3, 
        article 6, section 17, is amended by adding a subdivision to 
        read: 
           Subd. 4a.  [REFERENDUM REVENUE.] (a) The single board shall 
        submit the question of authorizing referendum revenue under 
        Minnesota Statutes, section 124A.03, to the voters of the 
        districts subject to the agreement.  A majority of those voting 
        in the affirmative on the question is sufficient to authorize 
        the referendum revenue.  The single board must certify the vote 
        of the election. 
           (b) As of the effective date of the dissolution of the 
        enhanced pairing agreement, the authorization for all referendum 
        revenues under Minnesota Statutes, section 124A.03, previously 
        approved by the voters of the districts subject to the agreement 
        is canceled. 
           Sec. 6.  Laws 1995, First Special Session chapter 3, 
        article 6, section 17, is amended by adding a subdivision to 
        read: 
           Subd. 4b.  [REFERENDUM; DEBT.] The single board shall 
        submit the question of authorizing bonded debt to the voters of 
        the districts subject to the agreement.  The question submitted 
        shall state the total amount of funding needed from all 
        sources.  A majority of those voting in the affirmative on the 
        question is sufficient to authorize the bonded debt.  The single 
        board must certify the vote of the election and authorize the 
        school boards to issue the bonds on public sale in accordance 
        with Minnesota Statutes, chapter 475. 
           Sec. 7.  Laws 1995, First Special Session chapter 3, 
        article 6, section 17, is amended by adding a subdivision to 
        read: 
           Subd. 4c.  [DATA REPORTING.] (a) For purposes of computing 
        aid entitlements and levy limitations for the school districts 
        participating in the enhanced pairing agreement, the 
        commissioner must allocate combined financial data among the 
        participating school districts based on the number of actual 
        pupil units in each school district in the year for which 
        financial data are allocated. 
           (b) Notwithstanding paragraph (a), if requested by the 
        single board, the commissioner may allocate financial data among 
        participating school districts based on estimates of actual 
        expenditures for projects or services by school district. 
           Sec. 8.  [SCHOOL BOARD ELECTION.] 
           Subdivision 1.  [SPECIFYING AN ELECTION PROCESS.] 
        Notwithstanding any language to the contrary in Minnesota 
        Statutes, chapter 205A, or other statutory language to the 
        contrary governing school district consolidation and board 
        formation, the election of school board members for a newly 
        consolidated district comprised of independent school district 
        No. 437, Argyle, and independent school district No. 443, 
        Stephen, shall be described in this section. 
           Subd. 2.  [1997 GENERAL ELECTION.] At the 1997 general 
        election, the terms of four members of the transition board 
        shall expire and two school board members shall be elected to 
        four-year terms.  One member shall be elected from the area of 
        the former independent school district No. 437, Argyle, and one 
        shall be elected from the area of the former independent school 
        district No. 443, Stephen. 
           Subd. 3.  [1999 GENERAL ELECTION.] At the 1999 general 
        election, the terms of six members of the transition board shall 
        expire and three school board members shall be elected to 
        four-year terms.  One member shall be elected from the former 
        independent school district No. 437, Argyle, and one shall be 
        elected from the area of the former independent school district 
        No. 443, Stephen.  One member shall be elected at large for a 
        four-year term from the newly created district. 
           Subd. 4.  [2001 GENERAL ELECTION.] At the 2001 general 
        election, the terms of the two school board members elected in 
        1997 to four-year terms shall expire and two school board 
        members shall be elected.  One member shall be elected from the 
        area of the former independent school district No. 437, Argyle, 
        and one shall be elected from the area of the former independent 
        school district No. 443, Stephen.  Also at the 2001 general 
        election, the terms of the two school board members elected in 
        1996 to five-year terms shall expire and one school board member 
        shall be elected at large to a four-year term from the newly 
        created district. 
           Subd. 5.  [2003 GENERAL ELECTION AND THEREAFTER.] At the 
        2003 general election and thereafter, all school board members 
        whose terms expire shall be elected at large to four-year terms 
        from the newly created district. 
           Subd. 6.  [BOARD SEATS; APPLICABLE PROVISIONS.] (a) The 
        transitional board shall determine which board seats expire at 
        each election. 
           (b) At the end of the transition period, the statutory 
        provisions governing board formation and election and Minnesota 
        Statutes, chapter 205A, shall apply. 
           Sec. 9.  [LEVY CALCULATION.] 
           Levy calculations under section 4 are effective for taxes 
        payable in 1996 and later.  The commissioner of the department 
        of children, families, and learning shall adjust levy 
        calculations as necessary to be consistent with section 2. 
           Sec. 10.  [APPROPRIATION.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sum indicated in this section is appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal year designated. 
           Subd. 2.  [CROW RIVER AND MEEKER AND WRIGHT SPECIAL 
        EDUCATION COOPERATIVES.] For a grant to special education 
        cooperatives No. 52-937, Crow River and No. 52-938, Meeker and 
        Wright, for handicapped accessibility improvements to conform to 
        the Americans with Disabilities Act and for code compliance in 
        school building space for the students served by the 
        cooperatives. 
             $  100,000     .....     1997 
           Sec. 11.  [EFFECTIVE DATE.] 
           Section 9 is effective the day following final enactment. 
                                   ARTICLE 7 
                              EDUCATION EXCELLENCE 
           Section 1.  Minnesota Statutes 1995 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 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.  To successfully accomplish paragraph (a), the state 
        board shall set in rule high academic standards for all 
        students.  The standards must contain the foundational skills in 
        the three core curricular areas of reading, writing, and 
        mathematics while meeting requirements for high school 
        graduation.  The standards must also provide an opportunity for 
        students to excel by meeting higher academic standards through a 
        profile of learning that uses curricular requirements to allow 
        students to expand their knowledge and skills beyond the 
        foundational skills.  All state board actions regarding the rule 
        must be premised on the following:  
           (1) the rule is intended to raise academic expectations for 
        students, teachers, and schools; 
           (2) any state action regarding the rule must evidence 
        consideration of school district autonomy; and 
           (3) the department of children, families, and learning, 
        with the assistance of school districts, must make available 
        information about all state initiatives related to the rule to 
        students and parents, teachers, and the general public in a 
        timely format that is appropriate, comprehensive, and readily 
        understandable. 
           (c) For purposes of adopting the rule, the state board, in 
        consultation with the department, recognized psychometric 
        experts in assessment, and other interested and knowledgeable 
        educators, using the most current version of professional 
        standards for educational testing, shall evaluate the 
        alternative approaches to assessment.  
           (c) (d) The content of the graduation rule must 
        differentiate between minimum competencies reflected in the 
        basic requirements assessment and rigorous profile of learning 
        standards.  When fully implemented, the requirements for high 
        school graduation in Minnesota, including must include both 
        basic requirements and the required profile of learning,.  The 
        profile of learning must measure student performance using 
        performance-based assessments compiled over time that integrate 
        higher academic standards, higher order thinking skills, and 
        application of knowledge from a variety of content areas.  The 
        profile of learning shall include a broad range of academic 
        experience and accomplishment necessary to achieve the goal of 
        preparing students to function effectively as purposeful 
        thinkers, effective communicators, self-directed learners, 
        productive group participants, and responsible citizens. 
           (d) (e) The state board shall periodically review and 
        report on the assessment process and student achievement with 
        the expectation of raising the standards and expanding high 
        school graduation requirements. 
           (e) (f) The state board shall report in writing to the 
        legislature annually by January 15 on its progress in developing 
        and implementing the graduation requirements according to the 
        requirements of this subdivision and section 123.97 until such 
        time as all the graduation requirements are implemented. 
           Sec. 2.  [121.1115] [SYSTEM ACCOUNTABILITY AND STATISTICAL 
        ADJUSTMENTS.] 
           Subdivision 1.  [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 
        REPORTING.] Consistent with the state board of education process 
        to adopt a results-oriented graduation rule under section 
        121.11, subdivision 7c, the state board of education and the 
        department of children, families, and learning, in consultation 
        with education and other system stakeholders, shall establish a 
        coordinated and comprehensive system of educational 
        accountability and public reporting that promotes higher 
        academic achievement. 
           Subd. 2.  [STATISTICAL ADJUSTMENTS.] In developing policies 
        and assessment processes to hold schools and school districts 
        accountable for high levels of academic standards, including the 
        profile of learning, the commissioner shall aggregate student 
        data over time to report student performance levels measured at 
        the school district, regional, or statewide level.  When 
        collecting and reporting the data, the commissioner shall:  (1) 
        acknowledge the impact of significant demographic factors such 
        as residential instability, the number of single parent 
        families, parents' level of education, and parents' income level 
        on school outcomes; and (2) organize and report the data so that 
        state and local policymakers can understand the educational 
        implications of changes in districts' demographic profiles over 
        time.  Any report the commissioner disseminates containing 
        summary data on student performance must integrate student 
        performance and the demographic factors that strongly correlate 
        with that performance. 
           Sec. 3.  [123.97] [FINDINGS; IMPROVING INSTRUCTION AND 
        CURRICULUM.] 
           The legislature finds that a process is needed to enable 
        school boards and communities to decide matters related to 
        planning, providing, and improving education instruction and 
        curriculum in the context of the state's high school graduation 
        standards.  The process should help districts evaluate the 
        impact of instruction and curriculum on students' abilities to 
        meet graduation standards, use evaluation results to improve 
        instruction and curriculum, and determine services that 
        districts and other public education entities can provide 
        collaboratively with institutions including families and private 
        or public organizations and agencies.  The legislature 
        anticipates that a highly focused public education strategy will 
        be an integral part of each district's review and improvement of 
        instruction and curriculum. 
           Sec. 4.  [123.972] [SCHOOL DISTRICT PROCESS.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
        123.97 and 123.972, the following terms have the meanings given 
        them. 
           (a) "Instruction" means methods of providing learning 
        experiences that enables a student to meet graduation standards. 
           (b) "Curriculum" means written plans for providing students 
        with learning experiences that lead to knowledge, skills, and 
        positive attitudes. 
           Subd. 2.  [ADOPTING POLICIES.] (a) A school board shall 
        adopt annually a written policy that includes the following: 
           (1) district goals for instruction and curriculum; 
           (2) a process for evaluating each student's progress toward 
        meeting graduation standards and identifying the strengths and 
        weaknesses of instruction and curriculum affecting students' 
        progress; 
           (3) a system for periodically reviewing all instruction and 
        curriculum; 
           (4) a plan for improving instruction and curriculum; and 
           (5) an instruction plan that includes education 
        effectiveness processes developed under section 121.608 and 
        integrates instruction, curriculum, and technology. 
           Subd. 3.  [INSTRUCTION AND CURRICULUM ADVISORY 
        COMMITTEE.] Each school board shall establish an instruction and 
        curriculum advisory committee to ensure active community 
        participation in all phases of planning and improving the 
        instruction and curriculum affecting state graduation 
        standards.  A district advisory committee, to the extent 
        possible, shall reflect the diversity of the district and its 
        learning sites, and shall include teachers, parents, support 
        staff, pupils, and other community residents.  The district may 
        establish building teams as subcommittees of the district 
        advisory committee under subdivision 4.  The district advisory 
        committee shall recommend to the school board districtwide 
        education standards, assessments, and program evaluations.  
        Learning sites may expand upon district evaluations of 
        instruction, curriculum, assessments, or programs.  Whenever 
        possible, parents and other community residents shall comprise 
        at least two-thirds of advisory committee members. 
           Subd. 4.  [BUILDING TEAM.] A school may establish a 
        building team to develop and implement an education 
        effectiveness plan to improve instruction and curriculum.  The 
        team shall advise the board and the advisory committee about 
        developing an instruction and curriculum improvement plan that 
        aligns curriculum, assessment of student progress in meeting 
        state graduation standards, and instruction. 
           Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
        school board shall use standard statewide reporting procedures 
        the commissioner develops and adopt a report that includes the 
        following: 
           (1) student performance goals for meeting state graduation 
        standards adopted for that year; 
           (2) results of local assessment data, and any additional 
        test data; 
           (3) the annual school district improvement plans; and 
           (4) information about district and learning site progress 
        in realizing previously adopted improvement plans. 
           (b) The school board shall publish the report in the local 
        newspaper with the largest circulation in the district or by 
        mail.  The board shall make a copy of the report available to 
        the public for inspection.  The board shall send a copy of the 
        report to the commissioner of children, families, and learning 
        by October 15 of each year. 
           (c) The title of the report shall contain the name and 
        number of the school district and read "Annual Report on 
        Curriculum, Instruction, and Student Performance."  The report 
        must include at least the following information about advisory 
        committee membership: 
           (1) the name of each committee member and the date when 
        that member's term expires; 
           (2) the method and criteria the school board uses to select 
        committee members; and 
           (3) the date by which a community resident must apply to 
        next serve on the committee. 
           Subd. 6.  [STUDENT EVALUATION.] The school board annually 
        shall provide high school graduates or GED recipients who 
        receive a diploma or its equivalent from the school district 
        with an opportunity to report to the board on the following: 
           (1) the quality of district instruction, curriculum, and 
        services; 
           (2) the quality of district delivery of instruction, 
        curriculum, and services; 
           (3) the utility of district facilities; and 
           (4) the effectiveness of district administration. 
           Subd. 7.  [PERIODIC REPORT.] Each school district shall 
        periodically ask affected constituencies about their level of 
        satisfaction with school.  The district shall include the 
        results of this evaluation in the report required under 
        subdivision 5. 
           Subd. 8.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
        least once every two years, the district report shall include an 
        evaluation of the district testing programs, according to the 
        following: 
           (1) written objectives of the assessment program; 
           (2) names of tests and grade levels tested; 
           (3) use of test results; and 
           (4) implementation of an assurance of mastery program. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        124.248, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
        education revenue shall be paid to a charter school as though it 
        were a school district.  The general education revenue for each 
        pupil unit is the state average general education revenue per 
        pupil unit minus $170, calculated without compensatory 
        revenue, transportation sparsity revenue, and the transportation 
        portion of the transition revenue adjustment, plus compensatory 
        revenue as though the school were a school district. 
           Sec. 6.  Minnesota Statutes 1995 Supplement, section 
        124.248, subdivision 1a, is amended to read: 
           Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
        shall be paid to a charter school that provides transportation 
        services according to section 120.064, subdivision 15, as though 
        it were a school district according to this subdivision.  
        Transportation aid shall equal transportation revenue.  
           (a) For the first two years that In addition to the revenue 
        under subdivision 1, a charter school is providing 
        transportation services, the regular transportation allowance 
        for the charter school shall be equal to the regular 
        transportation allowance for the school district in which the 
        charter school is located.  For the third year of transportation 
        services and later fiscal years, the predicted base cost for the 
        charter school shall be equal to the predicted base cost for the 
        school district in which the charter school is located shall 
        receive general education aid for each pupil unit equal to the 
        sum of $170, plus the transportation sparsity allowance for the 
        school district in which the charter school is located, plus the 
        transportation transition allowance for the school district in 
        which the charter school is located.  
           (b) For the first two years that a charter school is 
        providing transportation services, the nonregular special 
        programs transportation revenue equals the charter school's 
        actual cost in the current school year for nonregular 
        transportation services, minus the amount of regular 
        transportation revenue attributable to FTE's in the handicapped 
        category in the current school year for children with 
        disabilities under section 124.223, subdivisions 4, 5, 7, and 8. 
        For the third year of transportation services and later fiscal 
        years, the nonregular special programs transportation revenue 
        shall be computed according to section 124.225, subdivision 7d, 
        paragraph (b) 14.  
           Sec. 7.  Minnesota Statutes 1995 Supplement, section 
        124.248, subdivision 2, is amended to read: 
           Subd. 2.  [CAPITAL EXPENDITURE EQUIPMENT USE OF TOTAL 
        OPERATING CAPITAL REVENUE.] Capital expenditure equipment aid 
        shall be paid to a charter school according to section 124.245, 
        subdivision 6, as though it were a school district. 
           Capital expenditure equipment aid shall equal capital 
        expenditure equipment revenue.  Notwithstanding section 124.244 
        124A.22, subdivision 4 11, a charter school may use the total 
        operating capital revenue for any purpose related to the school. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        124.248, subdivision 3, is amended to read: 
           Subd. 3.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
        PROFICIENCY AID.] Special education aid shall be paid to a 
        charter school according to section 124.32 sections 124.3201 and 
        124.3202, as though it were a school district.  The charter 
        school may charge tuition to the district of residence as 
        provided in section 120.17, subdivision 4.  Limited English 
        proficiency programs aid shall be paid to a charter school 
        according to section 124.273 as though it were a school 
        district.  The charter school shall allocate its special 
        education levy equalization revenue to the resident districts of 
        the pupils attending the charter school as though it were a 
        cooperative, as provided in section 124.321, subdivision 2, 
        paragraph (a), clauses (1) and (3).  The districts of residence 
        shall levy as though they were participating in a cooperative, 
        as provided in section 124.321, subdivision 3. 
           Sec. 9.  Minnesota Statutes 1994, section 124.311, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE DISTRICTS.] To be eligible to receive 
        assurance of mastery revenue, a district must have a policy 
        adopted according to section 126.67, subdivision 3a, that 
        identifies the direct instructional services to be used to 
        assure that individual pupils master the learner outcomes in 
        communications and mathematics local process to review 
        curriculum and instruction.  
           Sec. 10.  Minnesota Statutes 1994, section 124.311, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
        services provided with assurance of mastery revenue if the pupil 
        has not demonstrated mastery of progress toward mastering 
        learner outcomes in communications or mathematics, or both the 
        required graduation standards, after receiving instruction that 
        was designed to enable the pupil to master make progress toward 
        mastering the learner outcomes required graduation standards in 
        a regular classroom setting.  To determine pupil eligibility, a 
        district must use the learner outcomes and the evaluation a 
        process, adopted by the school board under section 126.666, 
        subdivision 1, paragraph (a), clauses (2) and (3) to review 
        curriculum and instruction, for the subjects and at the grade 
        level at which the district uses the revenue. 
           Sec. 11.  Minnesota Statutes 1994, section 124.311, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DISTRICT REPORT.] A district that receives 
        assurance of mastery revenue shall include the following in the 
        a report required by section 126.666, subdivision 4:  
           (a) (1) a summary of initial assessment results used to 
        determine pupil eligibility to receive instructional services 
        must be included.  The summary must include:  
           (1) a description of the assessment device used; 
           (2) the number of pupils who were assessed; and 
           (3) the number of pupils who were determined to be eligible 
        to receive services.; 
           (b) (2) a description of the services provided to eligible 
        pupils must be included.; and 
           (c) (3) a summary of assessment results for eligible pupils 
        obtained after providing the services must be included. 
           Sec. 12.  Minnesota Statutes 1994, section 126.83, is 
        amended to read: 
           126.83 [SECONDARY CREDIT FOR EIGHTH GRADE STUDENTS.] 
           A student in eighth grade who satisfactorily completes at 
        least 120 hours of instruction in a high school course is 
        eligible to shall receive secondary course credit and the credit 
        shall count toward the student's graduation requirements.  This 
        section expires August 1, 1996. 
           Sec. 13.  Laws 1995, First Special Session chapter 3, 
        article 7, section 5, subdivision 4, is amended to read: 
           Subd. 4.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 
        PROGRAM GRANTS.] For year-round school/extended week or day 
        pilot program grants: 
              $1,800,000       .....      1996 
           $500,000 is for a grant to independent school district No. 
        624, White Bear Lake. 
           $500,000 is for a grant to independent school district No. 
        833, South Washington county. 
           $100,000 is for a grant to independent school district No. 
        911, Cambridge. 
           $300,000 is for a grant to independent school district No. 
        625, St. Paul. 
           $400,000 is for grants to two or more rural school 
        districts selected by the commissioner of education children, 
        families, and learning. 
           This appropriation is available until June 30, 1997. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Section 13 is effective the day following final enactment. 
                                   ARTICLE 8 
                     OTHER EDUCATION PROGRAMS AND FINANCING 
           Section 1.  Minnesota Statutes 1994, section 123.932, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  "Textbook" means any book or book substitute 
        which a pupil uses as a text or text substitute in a particular 
        class or program in the school regularly attended and a copy of 
        which is expected to be available for the individual use of each 
        pupil in this class or program, which book or book substitute or 
        text or text substitute shall be limited to books, workbooks, or 
        manuals, whether bound or in loose-leaf form, intended for use 
        as a principal source of study material for a given class or a 
        group of students.  The term includes only such secular, neutral 
        and nonideological textbooks as are available and are, used by, 
        or of benefit to Minnesota public school pupils. 
           Sec. 2.  Minnesota Statutes 1994, section 123.932, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  "Standardized tests" means standardized tests 
        and scoring services which are provided by commercial publishing 
        organizations or the state and which are in use in the public 
        schools of Minnesota to measure the progress of pupils in 
        secular subjects. 
           Sec. 3.  Minnesota Statutes 1994, section 123.932, 
        subdivision 1e, is amended to read: 
           Subd. 1e.  "Individualized instructional or cooperative 
        learning materials" means educational materials which:  
           (a) are designed primarily for individual pupil use or use 
        by pupils in a cooperative learning group in a particular class 
        or program in the school the pupil regularly attends; 
           (b) are secular, neutral, nonideological and not capable of 
        diversion for religious use; and 
           (c) are available and are, used by, or of benefit to 
        Minnesota public school pupils.  
           Subject to the requirements in clauses (a), (b), and (c), 
        "individualized instructional or cooperative learning materials" 
        include, but are not limited to, the following if they do not 
        fall within the definition of "textbook" in subdivision 1b:  
        published materials; periodicals; documents; pamphlets; 
        photographs; reproductions; pictorial or graphic works; film 
        strips; prepared slides; prerecorded video programs; prerecorded 
        tapes, cassettes and other sound recordings; manipulative 
        materials; desk charts; games; study prints and pictures; desk 
        maps; models; learning kits; blocks or cubes; flash cards; 
        individualized multimedia systems; prepared instructional 
        computer software programs; and prerecorded film cartridges 
        choral and band sheet music; and CD Rom.  
           "Individualized instructional or cooperative learning 
        materials" do not include the following:  chemicals; wall maps; 
        wall charts; pencils, pens or crayons; notebooks; blackboards; 
        chalk and erasers; duplicating fluids; paper; 16 mm films; 
        unexposed films; blank tapes, cassettes or videotape; and 
        instructional equipment, instructional hardware, or ordinary 
        daily consumable classroom supplies.  
           Sec. 4.  Minnesota Statutes 1994, section 123.932, 
        subdivision 11, is amended to read: 
           Subd. 11.  "Health services" means physician, dental, 
        nursing or optometric services provided to pupils and health 
        supplies brought to the site by the health professional for 
        pupil usage in the field of physical or mental health; provided 
        the term does not include direct educational instruction, 
        services which are required pursuant to 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 1994, section 123.933, as 
        amended by Laws 1995, First Special Session chapter 3, article 
        16, section 13, is amended to read: 
           123.933 [TEXTBOOKS, INDIVIDUAL INSTRUCTION OR COOPERATIVE 
        LEARNING MATERIAL, STANDARD TESTS.] 
           Subdivision 1.  [PROVISION.] The state board of education 
        shall promulgate rules under the provisions of chapter 14 
        requiring that in each school year, based upon formal requests 
        by or on behalf of nonpublic school pupils in a nonpublic 
        school, the local districts or intermediary service areas shall 
        purchase or otherwise acquire textbooks, individualized 
        instructional or cooperative learning materials, and 
        standardized tests and loan or provide them for use by children 
        enrolled in that nonpublic school.  These textbooks, 
        individualized instructional or cooperative learning materials, 
        and standardized tests shall be loaned or provided free to the 
        children for the school year for which requested.  The loan or 
        provision of the textbooks, individualized instructional or 
        cooperative learning materials, and standardized tests shall be 
        subject to rules prescribed by the state board of education. 
           Subd. 2.  [TITLE.] The title to textbooks, individualized 
        instructional or cooperative learning materials, and 
        standardized testing materials shall remain in the servicing 
        school district or intermediary service area, and possession or 
        custody may be granted or charged to administrators of the 
        nonpublic school attended by the nonpublic school pupil or 
        pupils to whom the textbooks, individualized instructional or 
        cooperative learning materials, or standardized tests are loaned 
        or provided. 
           Subd. 3.  [COST OF TEXTBOOKS; LIMITATION.] (a) The cost per 
        pupil of the textbooks, individualized instructional or 
        cooperative learning materials, and standardized tests provided 
        for in this section for each school year shall not exceed the 
        statewide average expenditure per pupil, adjusted pursuant to 
        clause (b), by the Minnesota public elementary and secondary 
        schools for textbooks, individualized instructional materials 
        and standardized tests as computed and established by the 
        department of children, families, and learning by March 1 of the 
        preceding school year from the most recent public school year 
        data then available. 
           (b) The cost computed in clause (a) shall be increased by 
        an inflation adjustment equal to the percent of increase in the 
        formula allowance, pursuant to section 124A.22, subdivision 2, 
        from the second preceding school year to the current school year.
           (c) The commissioner shall allot to the school districts or 
        intermediary service areas the total cost for each school year 
        of providing or loaning the textbooks, individualized 
        instructional or cooperative learning materials, and 
        standardized tests for the pupils in each nonpublic school.  The 
        allotment shall not exceed the product of the statewide average 
        expenditure per pupil, according to clause (a), adjusted 
        pursuant to clause (b), multiplied by the number of nonpublic 
        school pupils who make requests pursuant to this section and who 
        are enrolled as of September 15 of the current school year. 
           Sec. 6.  Minnesota Statutes 1994, section 123.935, 
        subdivision 2, is amended to read: 
           Subd. 2.  Health services may be provided to nonpublic 
        school pupils pursuant to this section at a public school, a 
        neutral site, the nonpublic school or any other suitable 
        location.  Guidance and counseling services may be provided to 
        nonpublic school pupils pursuant to this section only at a 
        public school or a neutral site.  District or intermediary 
        service area personnel and representatives of the nonpublic 
        school pupils receiving pupil support services shall hold an 
        annual consultation regarding the type of services, provider of 
        services, and the location of the provision of these services.  
        The district board or intermediary service area governing board 
        shall make the final decision on the location of the provision 
        of these services. 
           Sec. 7.  Minnesota Statutes 1994, section 123.935, 
        subdivision 7, is amended to read: 
           Subd. 7.  [NONPUBLIC EDUCATION COUNCIL.] (a) The 
        commissioner shall appoint a 15-member council on nonpublic 
        education.  The 15 members shall represent various areas of the 
        state, represent various methods of providing nonpublic 
        education, and shall be knowledgeable about nonpublic 
        education.  The compensation, removal of members, filling of 
        vacancies, and terms are governed by section 15.0575.  The 
        council shall not expire.  The council shall advise the 
        commissioner and the state board on issues affecting 
        nonpublic school matters under this section education and 
        nonpublic schools.  The council may recognize educational 
        accrediting agencies, for the sole purpose of sections 120.101, 
        120.102, and 120.103.  When requested by the commissioner or the 
        state board, the council may submit its advice about other 
        nonpublic school matters. 
           (b) A parent or guardian of a nonpublic school pupil or a 
        nonpublic school may file a complaint about services provided 
        under sections 123.931 to 123.937 with the nonpublic education 
        council.  The council may review the complaint and make a 
        recommendation for resolution to the commissioner. 
           Sec. 8.  Minnesota Statutes 1994, section 124.916, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 
        special school district No. 1, Minneapolis, may make an 
        additional levy not to exceed the amount raised by a net tax 
        rate of .10 percent times the adjusted net tax capacity for 
        taxes payable in 1991 and thereafter of the property in the 
        district for the preceding year.  The proceeds may be used only 
        to subsidize health insurance costs for eligible teachers as 
        provided in this section.  
           "Eligible teacher" means a retired teacher who was a basic 
        member of the Minneapolis teachers retirement fund association, 
        who retired before May 1, 1974, or who had 20 or more years of 
        basic member service in the Minneapolis teacher retirement fund 
        association and retired before June 30, 1983, and who is not 
        eligible to receive the hospital insurance benefits of the 
        federal Medicare program of the Social Security Act without 
        payment of a monthly premium.  The district shall notify 
        eligible teachers that a subsidy is available.  To obtain a 
        subsidy, an eligible teacher must submit to the school district 
        a copy of receipts for health insurance premiums paid.  The 
        school district shall disburse the health insurance premium 
        subsidy to each eligible teacher according to a schedule 
        determined by the district, but at least annually.  An eligible 
        teacher may receive a subsidy up to an amount equal to the 
        lesser of 90 percent of the cost of the eligible teacher's 
        health insurance or up to 90 percent of the cost of the number 
        two qualified plan of health coverage for individual policies 
        made available by the Minnesota comprehensive health association 
        under chapter 62E.  
           If funds remaining from the previous year's health 
        insurance subsidy levy, minus the previous year's required 
        subsidy amount, are sufficient to pay the estimated current year 
        subsidy, the levy must be discontinued until the remaining funds 
        are estimated by the school board to be insufficient to pay the 
        subsidy. 
           This subdivision does not extend benefits to teachers who 
        retire after June 30, 1983, and does not create a contractual 
        right or claim for altering the benefits in this subdivision.  
        This subdivision does not restrict the school district's right 
        to modify or terminate coverage under this subdivision. 
           Sec. 9.  [124C.77] [ENDOWED CHAIR.] 
           Subdivision 1.  [PURPOSE.] The purpose of the endowed chair 
        program is to increase curriculum offerings and learning 
        experiences available to students. 
           Subd. 2.  [ELIGIBILITY.] A school site, represented by the 
        school site council or, if no site council exists, the principal 
        or lead teacher, and the party interested in endowing a chair 
        may enter into an agreement for an endowed chair for no longer 
        than one year in length.  The party endowing the chair and the 
        school site may, at their discretion, renew annually. 
           Subd. 3.  [PROGRAM.] An endowed chair program may be for a 
        semester, a summer session, or a full school year.  Curriculum 
        developed or provided under the endowed chair program must 
        supplement the existing curriculum offerings available at the 
        school in the particular subject chosen. 
           Subd. 4.  [AGREEMENT.] The agreement must make available 
        funds sufficient for the salary and benefit costs of the 
        instructor, and necessary supplies for the course.  The 
        participating site must provide the classroom space and 
        administer the program.  The parties, in consultation with the 
        school district and the exclusive representative of the 
        teachers, jointly select the instructor for the endowed chair. 
           Sec. 10.  Laws 1995, First Special Session chapter 3, 
        article 8, section 25, subdivision 2, is amended to read: 
           Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
        Minnesota Statutes, section 124.214:  
             $24,241,000 $22,251,600     .....     1996 
             $ 7,905,000 $ 9,543,400     .....     1997 
           The 1996 appropriation includes $1,135,000 for 1995 and 
        $23,106,000 $21,116,600 for 1996.  
           The 1997 appropriation includes $4,077,000 $3,726,400 for 
        1996 and $3,828,000 $5,817,000 for 1997.  
           Sec. 11.  Laws 1995, First Special Session chapter 3, 
        article 8, section 27, is amended to read: 
           Sec. 27.  [EFFECTIVE DATES.] 
           Sections 18, 20, and 21 are effective the day following 
        final enactment. 
           Section 13 is effective July 1, 1997, if the governing body 
        of the city of Saint Paul and the governing body of independent 
        school district No. 625 have approved it and complied with 
        Minnesota Statutes, section 645.021, subdivision 3, before 
        January 1 31, 1996.  Section 14 does not abrogate language that 
        references city of St. Paul civil service rules in bargaining 
        unit agreements in existence on March 31, 1995. 
           Sec. 12.  [SCIMATHMN INTERCHANGE EMPLOYEES.] 
           Notwithstanding Minnesota Statutes, section 15.53, 
        subdivision 2, SciMathMN may contract with a school district for 
        a period not to exceed three consecutive years for the services 
        of a math specialist and a science specialist to work on 
        curriculum frameworks. 
           Sec. 13.  [SPECIAL LEVY; HENNING.] 
           For taxes payable in 1997, in addition to other levies, 
        independent school district No. 545, Henning, may levy for up to 
        $20,000 for the unreimbursed cost of an adult farm management 
        program. 
           Sec. 14.  [FUND TRANSFERS.] 
           Subdivision 1.  [AITKIN.] Notwithstanding Minnesota 
        Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
        on June 30, 1996, independent school district No. 0001, Aitkin, 
        may permanently transfer the balance in its debt redemption fund 
        to its building construction fund without making a levy 
        reduction. 
           Subd. 2.  [CHISAGO LAKES.] Notwithstanding Minnesota 
        Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
        on June 30, 1996, independent school district No. 2144, Chisago 
        Lakes, may permanently transfer up to $250,000 from the debt 
        redemption fund to the capital expenditure fund for facility and 
        technology improvements. 
           Subd. 3.  [ADA-BORUP.] Notwithstanding Minnesota Statutes, 
        sections 121.912, 121.9121, and 475.61, subdivision 4, on June 
        30, 1996, the Ada-Borup school district may permanently transfer 
        the balance in its debt redemption fund to its building 
        construction fund without making a levy reduction. 
           Subd. 4.  [NEVIS.] Notwithstanding Minnesota Statutes, 
        sections 121.912 and 121.9121, on June 30, 1996, independent 
        school district No. 308, Nevis, may permanently transfer up to 
        $100,000 from the bus purchase account in its transportation 
        fund to its capital expenditure fund without making a levy 
        reduction. 
           Subd. 5.  [WHITE BEAR LAKE.] Notwithstanding Minnesota 
        Statutes, sections 121.912, 121.9121, and 123.36, subdivision 
        13, independent school district No. 624, White Bear Lake, may 
        deposit the proceeds from a sale of properties known as the 
        Beach school site or the Gall district center site into the 
        building construction fund of the district without making a levy 
        reduction. 
           Subd. 6.  [LYLE.] Notwithstanding Minnesota Statutes, 
        sections 121.912 and 121.9121, on June 30, 1996, independent 
        school district No. 497, Lyle, may permanently transfer the 
        balance in its early childhood family education account to its 
        capital expenditure fund for expanding the district's technology 
        services. 
           Sec. 15.  [INSTRUCTIONAL DAY CLARIFICATION.] 
           (a) This section applies to any school district employee 
        who was scheduled to work on February 2, 1996, did not work on 
        that day and did not receive compensation for that day. 
           (b) Notwithstanding any law to the contrary, a school 
        district must either:  (i) allow any school district employee 
        under paragraph (a) the opportunity to work on another day that 
        the school district designates and must compensate the employee 
        working on the designated day at the employee's normal rate of 
        pay; or (ii) compensate any school district employee under 
        paragraph (a) for that day at the employee's normal rate of pay. 
           Sec. 16.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sum indicated in this section is appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for the fiscal year designated. 
           Subd. 2.  [MONTEVIDEO GRANT.] For a grant to independent 
        school district No. 129, Montevideo, for the unreimbursed costs 
        of an adult farm management program: 
             $100,000       .....     1996 
           Subd. 3.  [MULTICULTURAL CONTINUING EDUCATION GRANT.] For a 
        grant to independent school district No. 38, Red Lake, for 
        continuation of a multicultural continuing education pilot 
        project for teachers: 
             $69,000        .....     1996
           The district must match this sum with staff development 
        revenue under Minnesota Statutes, section 124A.29.  This 
        appropriation is available until June 30, 1997. 
           Subd. 4.  [NETT LAKE COMMUNITY CENTER.] For a grant to 
        independent school district No. 707, Nett Lake, for maintenance 
        replacement funds to cover delayed lease payments for the 
        collaborative community center. 
             $74,000        .....     1997
           Subd. 5.  [WEST ST. PAUL GRANT.] For a grant to independent 
        school district No. 197, West St. Paul, for a project 
        investigating the development of multiple pathways for students 
        to meet graduation standards. 
             $20,000        .....     1997
           Subd. 6.  [ST. PAUL ACCOUNTABILITY.] For a grant to 
        independent school district No. 625, St. Paul, to assist in the 
        implementation of the district accountability plan. 
             $100,000       .....     1997 
           The district must evaluate student achievement data by 
        building and measure the results annually.  The district must 
        also establish criteria and modifications that may be used if 
        buildings are not meeting the goals of the student improvement 
        plan developed by the buildings. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Sections 9 and 12 are effective July 1, 1996.  Sections 10, 
        14, 15, and 16 are effective the day following final enactment. 
                                   ARTICLE 9 
                          EDUCATION POLICY PROVISIONS
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        115A.072, subdivision 1, is amended to read: 
           Subdivision 1.  [WASTE ENVIRONMENTAL EDUCATION COALITION 
        ADVISORY BOARD.] (a) The director shall provide for the 
        development and implementation of a program of general 
        public environmental education on waste management in 
        cooperation and coordination with the pollution control agency, 
        department of children, families, and learning, department of 
        agriculture, environmental quality board, environmental 
        education board, educational institutions, other public agencies 
        with responsibility for waste management or public education, 
        and three other persons who represent private industry and who 
        have knowledge of or expertise in recycling and solid waste 
        management issues.  The objectives of the program are to:  
        develop increased public awareness of and interest in 
        environmentally sound waste management methods; encourage better 
        informed decisions on waste management issues by business, 
        industry, local governments, and the public; and disseminate 
        practical information about ways in which households and other 
        institutions and organizations can improve the management of 
        waste programs that are designed to meet the goals listed in 
        section 126A.01. 
           (b) The director shall appoint an environmental education 
        advisory task force, to be called the waste education coalition, 
        of up to 18 members to board shall advise the director in 
        carrying out the director's responsibilities under this 
        section and whose membership represents the agencies and 
        entities listed in this subdivision.  The board consists of 20 
        members as follows: 
           (1) a representative of the pollution control agency, 
        appointed by the commissioner of the agency; 
           (2) a representative of the department of children, 
        families, and learning, appointed by the commissioner of 
        children, families, and learning; 
           (3) a representative of the department of agriculture, 
        appointed by the commissioner of agriculture; 
           (4) a representative of the department of health, appointed 
        by the commissioner of health; 
           (5) a representative of the department of natural 
        resources, appointed by the commissioner of natural resources; 
           (6) a representative of the board of water and soil 
        resources, appointed by that board; 
           (7) a representative of the environmental quality board, 
        appointed by that board; 
           (8) a representative of the board of teaching, appointed by 
        that board; 
           (9) a representative of the University of Minnesota 
        extension service, appointed by the director of the service; 
           (10) a citizen member from each congressional district, of 
        which two must be licensed teachers currently teaching in the 
        K-12 system, appointed by the director; and 
           (11) three at-large citizen members, appointed by the 
        director. 
        The citizen members shall serve two-year terms.  Compensation of 
        board members is governed by section 15.059, subdivision 6.  The 
        task force board expires on June 30, 1997 2003. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        120.1045, subdivision 1, is amended to read: 
           Subdivision 1.  [BACKGROUND CHECK REQUIRED.] A school 
        hiring authority, as defined in subdivision 4, shall request a 
        criminal history background check from the superintendent of the 
        bureau of criminal apprehension on all individuals who are 
        offered employment in the school, as defined in subdivision 4.  
        In order to be eligible for employment, an individual who is 
        offered employment must provide an executed criminal history 
        consent form and a money order or cashier's check payable to the 
        bureau of criminal apprehension for the fee for conducting the 
        criminal history background check.  A school may charge a person 
        offered employment an additional fee of up to $2 to cover the 
        school's costs under this section.  The superintendent shall 
        perform the background check by retrieving criminal history data 
        maintained in the criminal justice information system computers. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        120.1045, is amended by adding a subdivision to read: 
           Subd. 4.  [DEFINITIONS.] For purposes of this section: 
           (a) "School" means a school as defined in section 120.101, 
        subdivision 4, except a home-school, and includes a school 
        receiving tribal contract or grant school aid under section 
        124.86. 
           (b) "School hiring authority" means the school principal or 
        other person having general control and supervision of the 
        school. 
           Sec. 4.  Minnesota Statutes 1995 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 children, 
        families, and learning 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 or who has been absent from the 
        post-secondary institution for the first 15 consecutive school 
        days of the quarter or semester and is not receiving instruction 
        in the home or hospital. 
           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 children, families, and learning 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 children, families, 
        and learning notifies a post-secondary institution that an 
        overpayment has been made, the institution shall promptly remit 
        the amount due. 
           Sec. 5.  Minnesota Statutes 1995 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 children, families, and learning 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 or who has been absent from the 
        post-secondary institution for the first 15 consecutive school 
        days of the quarter or semester and is not receiving instruction 
        in the home or hospital. 
           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 children, families, and learning 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 children, families, 
        and learning 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. 6.  Minnesota Statutes 1995 Supplement, 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. 
           (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 the former board of technical 
        colleges, or the board of trustees of the Minnesota state 
        colleges and universities. 
           (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, 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.  
           (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 fund balance 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 children, families, and learning shall 
        determine the number of full-time equivalent actual pupil units 
        in the programs.  The department of children, families, and 
        learning 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. 7.  Minnesota Statutes 1994, 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 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. 
           (e) All colleges and universities approved by the board of 
        teaching to prepare persons for teacher licensure shall include 
        in their teacher preparation programs a common core of teaching 
        knowledge and skills to be acquired by all persons recommended 
        for teacher licensure.  This common core shall meet the 
        standards developed by the interstate new teacher assessment and 
        support consortium in its 1992 "model standards for beginning 
        teacher licensing and development."  Amendments to standards 
        adopted under this paragraph are covered by chapter 14. 
           Sec. 8.  Minnesota Statutes 1994, section 125.05, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [TEACHER LICENSES.] The board of teaching may 
        issue teacher licenses under the licensure rules in place on 
        July 31, 1996. 
           Sec. 9.  [125.192] [TEACHER LICENSURE.] 
           Teachers licensed in the education of blind and visually 
        impaired students must demonstrate competence in reading and 
        writing Braille.  The board of teaching, at such time as a valid 
        and reliable test is available, shall adopt a rule to assess 
        these competencies that is consistent with the standards of the 
        National Library Services for the Blind and Physically 
        Handicapped. 
           Sec. 10.  [126.091] [MOMENT OF SILENCE.] 
           A moment of silence may be observed. 
           Sec. 11.  Minnesota Statutes 1995 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 plans under this 
        section.  The board must establish a staff development committee 
        to develop the plan, assist site decision-making teams in 
        developing a site plan consistent with the goals of the plan, 
        and evaluate staff development efforts at the site level.  A 
        majority of the advisory committee must be teachers representing 
        various grade levels, subject areas, and special education.  The 
        advisory committee must also include nonteaching staff, parents, 
        and administrators.  Districts shall report staff development 
        results and expenditures to the commissioner in the form and 
        manner determined by the commissioner.  The expenditure report 
        shall include expenditures by the school board for district 
        level activities and expenditures made by the staff.  The report 
        shall provide a breakdown of expenditures for (1) curriculum 
        development and programs, (2) in-service education, workshops, 
        and conferences, and (3) the cost of teachers or substitute 
        teachers for staff development purposes.  Within each of these 
        categories, the report shall also indicate whether the 
        expenditures were incurred at the district level or the school 
        site level, and whether the school site expenditures were made 
        possible by the grants to school sites that demonstrate 
        exemplary use of allocated staff development revenue.  These 
        expenditures are to be reported using the UFARS system.  The 
        commissioner shall report the staff development expenditure data 
        to the education committees of the legislature by February 15 
        each year. 
           Sec. 12.  Minnesota Statutes 1994, section 128D.11, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CITY PLANNING COMMISSION APPROVAL; EXCEPTIONS.] 
        (a) No election shall be held on a proposed issue of bonds 
        unless the board has submitted to the city planning commission a 
        statement of the location and general description, so far as 
        then known, of any project proposed to be constructed or 
        acquired from the proceeds of such bonds with a request for 
        preliminary approval of each such project as being in accordance 
        with the comprehensive plan of the city of Minneapolis.  The 
        commission may state its preliminary approval or disapproval of 
        the projects included in such statement within 60 days after 
        receipt thereof, and failure so to do shall be deemed to signify 
        preliminary approval of such projects.  In the event the 
        commission shall disapprove any proposed project included in the 
        statement, a vote of at least six members of the board of 
        education shall be required for the adoption of a resolution 
        submitting the proposed bond issue to the electors.  
        Notwithstanding the preliminary approval of any project as 
        herein provided, such project shall be resubmitted to the city 
        planning commission at the time and in the manner specified in 
        paragraph (b).  The location and nature of each project shall be 
        determined by the board of education and reviewed by the city 
        planning commission at the time, with reference to the 
        circumstances then existing.  Nothing herein shall prevent the 
        revision or elimination of any project previously given 
        preliminary approval or the substitution of another project 
        therefor, by the procedure specified in paragraph (b), if 
        considered necessary by the board to fulfill its 
        responsibilities for public education, and for the construction 
        of school facilities so far as possible in accordance with the 
        comprehensive city plan, provided however no such revision, 
        elimination, or substitution shall be made unless approved by 
        unanimous vote of all members of the board of education.  
        Notwithstanding anything to the contrary contained in this act 
        no election shall be held on a proposed issue of bonds on a date 
        earlier than 60 days after preliminary approval or disapproval 
        by the city planning commission. 
           (b) The school district shall not expend the proceeds of 
        bonds for any purpose provided for in subdivisions 1 to 
        6 requiring approval of the city planning commission unless a 
        proposed resolution stating the location and general description 
        of the project or undertaking shall have been submitted to the 
        city planning commission for consideration of the proposed 
        project or undertaking as being in accordance with the 
        comprehensive plan of the city of Minneapolis.  The commission 
        may state its approval or disapproval of the proposed project or 
        undertaking within 60 days thereafter.  A failure on the part of 
        the commission to state its disapproval within 60 days after 
        receipt of such resolution shall be deemed an approval.  In the 
        event the commission shall disapprove any proposed project or 
        undertaking, a unanimous vote of the members of the board of 
        education shall be required for the adoption of the resolution.  
           Sec. 13.  Laws 1993, chapter 224, article 12, section 39, 
        as amended by Laws 1994, chapter 532, article 2, section 14; 
        Laws 1994, chapter 647, article 8, section 32; Laws 1994, 
        chapter 647, article 12, section 35; and Laws 1995, First 
        Special Session chapter 3, article 8, section 15, 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; 8700.6800; and 8700.7100, are repealed. 
           (b) Minnesota Rules, parts 3520.1600; 3520.2900; 3520.3000; 
        3520.3200; 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, are repealed. 
           (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0300; 
        3510.8100; 3510.8200; 3510.8300; 3510.8400; 3515.0100, subparts 
        2, 5, 6, and 26; 3515.0500, subpart 4, option two, items D and 
        E; 3515.0700, subpart 4, options 4, 6, 7, and 8; 3515.1100; 
        3515.1500, subparts 2 and 3, item C; 3515.2100, subparts 2 and 
        3; 3515.3300; 3515.3400; 3515.3500; 3515.3600; 3515.3700; 
        3515.3800; 3515.3900; 3515.4000; 3515.4500; 3515.4600; 
        3515.4621; 3515.4700; 3515.4800; 3515.5000, subpart 2; 
        3515.5050; 3515.5500, subparts 3, 4, 5, 6, 7, 9, 10, and 11; 
        3515.5600; 3515.6005, subparts 2 and 3; 3515.6100; 3515.8300; 
        3515.8900; 3515.9910; 3515.9911; 3515.9912; 3515.9913; 
        3515.9920; 3515.9942; 3517.3150; 3517.3170; 3517.3420; 
        3517.3450; 3517.3500; 3517.3650; 3517.8500; 3517.8600; 
        3520.2400; 3520.2500; 3520.2600; 3520.2800; 3520.3100; 
        3520.3400; 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; and 8750.4200; 8750.9000; 
        8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 
        8750.9600; and 8750.9700, are repealed. 
           (e) Minnesota Rules, parts 3510.0100; 3510.0200; 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; 3510.8500; 3510.8600; 3510.8700; 3510.9000; 
        3510.9100; 3517.0100; and 3517.0120, are repealed. 
           Sec. 14.  Laws 1993, chapter 224, article 12, section 41, 
        as amended by Laws 1995, First Special Session chapter 3, 
        article 8, section 16, is amended to read: 
           Sec. 41.  [EFFECTIVE DATE.] 
           Sections 22 to 25 are effective July 1, 1995. 
           Section 32, paragraph (b), is effective July 1, 1995.  
        Section 32, paragraph (c), is effective August 1, 1996. 
           Section 39, paragraph (b), is effective August 1, 1994.  
        Section 39, paragraph (c), is effective July 1, 1995.  Section 
        39, paragraph (d), is effective August 1, 1996.  Section 39, 
        paragraph (e), is effective July 1 December 31, 1996. 
           Sec. 15.  [RECOMMENDATIONS FOR CONDUCTING BACKGROUND 
        CHECKS.] 
           Subdivision 1.  [WORKING GROUP.] The commissioner of 
        children, families, and learning shall convene a working group 
        to recommend an efficient and effective process for conducting 
        background checks on candidates for teacher licensure, 
        elementary and secondary school teachers, and other school 
        district employees, consistent with the requirements under 
        Minnesota Statutes, sections 120.1045 and 125.05, subdivision 
        8.  The working group must include one representative from each 
        of the following organizations:  the state board of teaching; 
        the Minnesota school boards association; the Minnesota education 
        association; the Minnesota federation of teachers; the Minnesota 
        state colleges and universities; the University of Minnesota; 
        the private college council; the Minnesota association of 
        colleges of teacher education; the statewide student 
        associations from the state universities, the University of 
        Minnesota, and the private liberal arts colleges; the Minnesota 
        bureau of criminal apprehension; the American association of 
        state, county and municipal employees; and other groups that the 
        commissioner determines are relevant.  By February 1, 1997, the 
        commissioner shall submit the group's recommendations concerning 
        an efficient and effective process, including recommended 
        statutory changes, to the chairs of the education committees of 
        the legislature. 
           Subd. 2.  [ISSUES TO RESOLVE.] In recommending an efficient 
        and effective process for conducting background checks, the 
        working group must address at least the following: 
           (1) how might the process for conducting background checks 
        be made more efficient and less burdensome for substitute 
        employees; 
           (2) to what extent should service cooperative employees, 
        teacher interns, student teachers, school volunteers, 
        independent contractors, or student employees be subject to 
        background checks; 
           (3) how might the process of paying for background checks 
        be made more flexible and less expensive; 
           (4) to what extent should nonstate residents applying for 
        school district employment be subject to background check 
        requirements; 
           (5) to what extent would a central repository of background 
        check data be useful and, if it is useful, how would it operate; 
           (6) how might duplication between licensure and employment 
        checks be avoided; 
           (7) to what extent should an individual be subject to a 
        periodic background check; and 
           (8) whether the scope of the background check is 
        appropriate to accomplish the intended purpose of the statutes 
        and whether the scope of the background check should be tailored 
        to particular classes of individuals. 
           Subd. 3.  [TEMPORARY PROVISIONS.] (a) Notwithstanding any 
        law to the contrary, the following provisions apply until June 
        30, 1997. 
           (b) Any candidate for teacher licensure and any prospective 
        school district employee for whom a background check was 
        completed after December 1, 1995, shall not be required to 
        undergo another background check solely to comply with the 
        requirements of Minnesota Statutes, sections 120.1045 and 
        125.05, subdivision 8. 
           (c) The board of teaching and the state board of education 
        shall issue a license to an otherwise qualified individual while 
        completion of a background check is pending, subject to 
        Minnesota Statutes, section 125.05, subdivision 8. 
           (d) A school hiring authority may use the results of a 
        criminal history background check performed at the request of 
        another school hiring authority if:  the results of the check 
        are on file with the other school hiring authority or are 
        otherwise assessable; the check was performed within the past 
        year; and there is no reason to believe that the individual has 
        committed an act subsequent to the check that would not be 
        included in it. 
           Sec. 16.  [PARENT EDUCATION INSTRUCTOR LICENSE.] 
           (a) Notwithstanding Minnesota Statutes, section 125.05, 
        subdivision 1, persons who currently hold or have held a parent 
        education instructor license issued by the board of technical 
        colleges or the board of trustees of the Minnesota state 
        colleges and universities prior to June 30, 1997, shall, upon 
        application, be issued a family education/parent educator 
        license granted by the Minnesota board of teaching upon evidence 
        of having met the renewal requirements listed on the expiring 
        license. 
           (b) Effective June 30, 1997, the board of trustees of the 
        Minnesota state colleges and universities shall not issue parent 
        education instructor licenses. 
           Sec. 17.  [BUFFALO; FARIBAULT; SLEEPY EYE; SCHOOL YEAR.] 
           Subdivision 1.  [EXCEPTION.] Notwithstanding Minnesota 
        Statutes, section 126.12, subdivision 1, independent school 
        districts No. 877, Buffalo, No. 656, Faribault, No. 84, Sleepy 
        Eye, and students from the residential academies, independent 
        school No. 0160 may begin the 1996-1997 school year prior to 
        Labor Day only by the number of days necessary to accommodate 
        the transition into the new or renovated elementary or senior 
        high school buildings. 
           Subd. 2.  [CONDITIONAL EXCEPTION.] If this act is effective 
        after April 1, 1996, the boards of independent school district 
        No. 877, Buffalo, No. 84, Sleepy Eye, and No. 656, Faribault, 
        are exempt from the April 1 deadline for setting a school 
        calendar for the 1996-1997 school year in Minnesota Statutes, 
        section 126.12, subdivision 2.  The board must set the calendar 
        as soon as possible after the effective date of this section. 
           Subd. 3.  [APPLICATION.] This section applies only for the 
        1996-1997 school year.  
           Sec. 18.  [LOLA AND RUDY PERPICH SCHOOL FOR THE ARTS AND 
        RESOURCE CENTER.] 
           It is the desire of the Minnesota legislature to recognize 
        the many contributions of Lola and Rudy Perpich to the state and 
        people of Minnesota, including the instrumental role Lola and 
        Rudy Perpich played in establishing and supporting the Minnesota 
        school for the arts and resource center.  The legislature 
        understands that the school's critical early successes were due 
        in large measure to Lola and Rudy Perpich and greatly 
        appreciates their efforts. 
           Sec. 19.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes, 
        the revisor shall change all references from "Minnesota center 
        for arts education" to "Lola and Rudy Perpich Minnesota center 
        for arts education." 
           Sec. 20.  [REPEALER.] 
           (a) Minnesota Statutes 1995 Supplement, section 120.1045, 
        subdivision 3, is repealed the day following final enactment. 
           (b) Minnesota Statutes 1995 Supplement, section 126A.02, 
        subdivision 2, is repealed. 
           (c) Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 
        8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 
        8750.9600; and 8750.9700, are repealed. 
           Sec. 21.  [EFFECTIVE DATE.] 
           Section 6 is effective for the 1995-1996 school year.  
        Sections 1, 9, 13, 14, 16, and 20, paragraphs (a) and (b), are 
        effective the day following final enactment.  Section 12 is 
        effective January 1, 1997. 
           Section 20, paragraph (c), is effective August 1, 1997. 
                                   ARTICLE 10 
                                   LIBRARIES 
           Section 1.  Minnesota Statutes 1994, section 134.34, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [PROPOSED BUDGET.] In addition to the annual 
        report required in section 134.13, a regional public system that 
        receives a basic system support grant under this section must 
        provide each participating county and city with its proposed 
        budget for the next year. 
                                   ARTICLE 11 
                                 STATE AGENCIES 
           Section 1.  Laws 1995, First Special Session chapter 3, 
        article 11, section 21, subdivision 2, is amended to read: 
           Subd. 2.  [DEPARTMENT.] For the department of 
        education children, families, and learning: 
              $23,150,000 $26,110,000      .....      1996
              $21,803,000                  .....      1997
           (a) Any balance in the first year does not cancel but is 
        available in the second year. 
           (b) $21,000 each year is from the trunk highway fund. 
           (c) $522,000 each year is for the academic excellence 
        foundation. 
           Up to $50,000 each year is contingent upon the match of $1 
        in the previous year from private sources consisting of either 
        direct monetary contributions or in-kind contributions of 
        related goods or services, for each $1 of the appropriation.  
        The commissioner of education children, families, and learning 
        must certify receipt of the money or documentation for the 
        private matching funds or in-kind contributions.  The 
        unencumbered balance from the amount actually appropriated from 
        the contingent amount in 1996 does not cancel but is available 
        in 1997.  The amount carried forward must not be used to 
        establish a larger annual base appropriation for later fiscal 
        years. 
           (d) $204,000 each year is for the state board of education. 
           (e) $227,000 each year is for the board of teaching. 
           (f) $775,000 each year is for educational effectiveness 
        programs according to Minnesota Statutes, sections 121.602 and 
        121.608. 
           (g) $60,000 each year is for contracting with the state 
        fire marshal to provide the services required according to 
        Minnesota Statutes, section 121.1502. 
           (h) $400,000 each year is for health and safety management 
        assistance contracts under Minnesota Statutes, section 124.83. 
           (i) The expenditures of federal grants and aids as shown in 
        the biennial budget document and its supplements are approved 
        and appropriated and shall be spent as indicated. 
           (j) The commissioner shall maintain no more than five total 
        complement in the categories of commissioner, deputy 
        commissioner, assistant commissioner, assistant to the 
        commissioner, and executive assistant. 
           The department of education children, families, and 
        learning may establish full-time, part-time, or seasonal 
        positions as necessary to carry out assigned responsibilities 
        and missions.  Actual employment levels are limited by the 
        availability of state funds appropriated for salaries, benefits, 
        and agency operations or funds available from other sources for 
        such purposes. 
           (k) The department of education children, families, and 
        learning shall develop a performance report on the quality of 
        its programs and services.  The report must be consistent with 
        the process specified in Minnesota Statutes, sections 15.90 to 
        15.92.  The goals, objectives, and measures of this report must 
        be developed in cooperation with the chairs of the finance 
        divisions of the education committees of the house of 
        representatives and senate, the department of finance, and the 
        office of legislative auditor.  The report prepared in 1995 must 
        include a complete set of goals, objectives, and measures for 
        the department.  The report presented in 1996 and subsequent 
        years must include data to indicate the progress of the 
        department in meeting its goals and objectives. 
           The department of education children, families, and 
        learning must present a plan for a biennial report on the 
        quality and performance of key education programs in Minnesota's 
        public early childhood, elementary, middle, and secondary 
        education programs.  To the extent possible, the plan must be 
        consistent with Minnesota Statutes, sections 15.90 to 15.92.  
        The department must consult with the chairs of the finance 
        divisions of the education committees of the house of 
        representatives and senate, the department of finance, and the 
        office of legislative auditor in developing this plan.  The plan 
        for this report must be presented in 1995 and the first biennial 
        report presented in 1996. 
           (l) The commissioner of education children, families, and 
        learning shall perform a facilities standards evaluation of 
        public elementary and secondary facilities in the state.  This 
        evaluation shall include a measure of the following: 
           (1) the physical condition of education facilities; 
           (2) the level of utilization relative to the capacity of 
        education facilities; 
           (3) the intensity of technological use in both 
        administrative and instructional areas in education facilities; 
           (4) the alignment between education programs in place and 
        the structure of education facilities; and 
           (5) an estimate of facility construction over the next 
        decade. 
           This evaluation may be based on a sample of facilities but 
        must include geographic breakdowns of the state. 
           The report shall indicate which construction and repair of 
        district facilities is required to bring a district into 
        compliance with fire safety codes, occupational safety and 
        health requirements, and the Americans with Disabilities Act.  
           The commissioner shall recommend to the 1996 legislature 
        standards for the review and comment process under Minnesota 
        Statutes, section 121.15.  The standards must integrate the use 
        of technology, both current and potential, flexible scheduling, 
        and program adjustments relative to implementation of the 
        graduation rule. 
           (m) $120,000 is for a feasibility and design study to 
        develop a statewide student performance accountability report.  
        The department must identify and assess the current availability 
        of critical data-based information about student performance and 
        feasibility of using information from the existing sources, 
        recommend additional data-based elements and data collection 
        strategies that will provide for ongoing assessment of 
        educational reform and improvement, and recommend methods for 
        improving the coordination and dissemination of local 
        accountability reports as part of a statewide reporting system.  
        The study must include a statewide implementation and budget 
        plan.  The study process must involve other government units, 
        school and citizen leaders, and members of higher education 
        concerned with the education and development of children and 
        youth.  It must also consider ways to access the research and 
        development capacity of institutions of higher education in 
        Minnesota.  The commissioner shall report the results of the 
        study to the education committees of the legislature and the 
        state board of education by February 1, 1996. 
           (n) $1,000,000 in fiscal year 1996 is for grants to special 
        school district No. 1, Minneapolis, and independent school 
        district No. 625, St. Paul, for after school enrichment pilot 
        programs targeted towards junior high and middle school 
        students.  These programs shall be developed collaboratively 
        with city government, park boards, family services 
        collaboratives, and any other community organizations offering 
        similar programming.  Any balance remaining in the first year 
        does not cancel but is available in the second year. 
           (o) $188,000 each year is appropriated from the special 
        revenue fund for the graduation rule.  The department 
        appropriation is to be used to fund continued assessment and 
        standards development and piloting; to broaden public 
        understanding through communication; to continue development of 
        learning benchmarks; for ongoing statewide assessment efforts; 
        to develop system performance standards; and to provide 
        technical assistance to schools throughout the state.  The 
        appropriation from the special revenue fund is to be used for 
        appropriate development efforts in health-related standards and 
        assessments.  The commissioner may transfer any portion of this 
        appropriation from the special revenue fund not needed for the 
        purposes of this paragraph to the Minnesota highway safety 
        center at St. Cloud state university.  Any amount of this 
        appropriation does not cancel and shall be carried forward to 
        the following fiscal year.  Notwithstanding any law to the 
        contrary, the commissioner may contract for national expertise 
        and related services in each of these development areas.  
        Notwithstanding Minnesota Statutes, section 15.53, subdivision 
        2, the commissioner of education children, families, and 
        learning may contract with a school district for a period no 
        longer than five consecutive years for the services of an 
        educator to work in the development, implementation, or both, of 
        the graduation rule.  The commissioner may contract for services 
        and expertise as necessary for development and implementation of 
        the graduation standards.  Notwithstanding any law to the 
        contrary, the contracts are not subject to the contract 
        certification procedures of the commissioner of administration 
        or of Minnesota Statutes, chapter 16B, and are not subject to or 
        included in any spending limitations on contracts. 
           (p) $600,000 in 1996 and $350,000 in 1997 is for transition 
        aid for information support. 
           (q) Up to $50,000 each year is for grants to school 
        districts for mentorship cooperative ventures between school 
        districts and post-secondary teacher preparation institutions 
        for alternative licensure programs according to Minnesota 
        Statutes, section 125.188. 
           (r) Up to $50,000 each year is for GED coordination. 
           (s) Of the 1997 appropriation for education and employment 
        transitions grants in Laws 1995, First Special Session chapter 
        3, article 4, section 29, subdivision 8, $100,000 is for 
        work-based learning pilot programs.  
           Sec. 2.  Laws 1995, First Special Session chapter 3, 
        article 11, section 22, is amended to read: 
           Sec. 22.  [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS 
        EDUCATION.] 
           The sums indicated in this section are appropriated from 
        the general fund to the Minnesota center for arts education for 
        the fiscal years designated: 
            $5,217,000 $5,330,000     .....     1996
            $5,217,000 $5,456,000     .....     1997
           Of the fiscal year 1996 appropriation, $154,000 is to fund 
        artist and arts organization participation in the education 
        residency and education technology projects, $75,000 is for 
        school support for the residency project, and $121,000 is for 
        further development of the partners:  arts and school for 
        students (PASS) program, including pilots.  Of the fiscal year 
        1997 appropriation, $154,000 is to fund artist and arts 
        organizations participation in the education residency project, 
        $75,000 is for school support for the residency project, and 
        $121,000 is to fund the PASS program, including additional 
        pilots.  The guidelines for the education residency project and 
        the pass program shall be developed and defined by the Minnesota 
        arts board.  The Minnesota arts board shall participate in the 
        review and allocation process.  The center for arts education 
        shall cooperate with the Minnesota arts board to fund these 
        projects. 
           Any balance remaining in the first year does not cancel, 
        but is available in the second year. 
           The Minnesota center for arts education may establish 
        full-time, part-time, or seasonal positions as necessary to 
        carry out assigned responsibilities and missions.  Actual 
        employment levels are limited by the availability of state funds 
        appropriated for salaries, benefits and agency operations or 
        funds available from other sources for such purposes.  
           In the next biennial budget, the Minnesota center for arts 
        education must assess its progress in meeting its established 
        performance measures and inform the legislature on the content 
        of that assessment.  The information must include an assessment 
        of its progress by consumers and employees. 
           Sec. 3.  Laws 1995, First Special Session chapter 3, 
        article 11, section 23, is amended to read: 
           Sec. 23.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
           The sums indicated in this section are appropriated from 
        the general fund to the department of education children, 
        families, and learning for the Faribault academies for the 
        fiscal years designated:  
             $8,075,000 $8,316,000     .....     1996
             $8,075,000 $8,526,000     .....     1997 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           The state board of education may establish full-time, 
        part-time, or seasonal positions as necessary to carry out 
        assigned responsibilities and missions of the Faribault 
        academies.  Actual employment levels are limited by the 
        availability of state funds appropriated for salaries, benefits 
        and agency operations or funds available from other sources for 
        such purposes. 
           In the next biennial budget, the academies must assess 
        their progress in meeting the established performance measures 
        for the Faribault academies and inform the legislature on the 
        content of that assessment.  The information must include an 
        assessment of its progress by consumers and employees. 
           Sec. 4.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the commissioner of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [LITIGATION COSTS.] For costs associated with 
        desegregation litigation: 
             $700,000     .....     1996
           This appropriation is available until June 30, 1997, and 
        may be expended only to the extent costs are incurred. 
           Subd. 3.  [RETRAINING.] For retraining of department 
        employees and employees who become department employees as a 
        result of transfer from other agencies pursuant to Minnesota 
        Statutes, section 119A.04: 
             $275,000     .....     1996
           This appropriation is available until June 30, 1997. 
           The retraining is subject to Laws 1995, First Special 
        Session chapter 3, article 16, section 10, subdivision 5. 
           Subd. 4.  [STUDENT ORGANIZATIONS.] To replace federal funds 
        for grants to organizations supporting vocational student groups:
             $90,000     .....     1997 
           The commissioner must use these funds, in addition to state 
        funds already designated for this purpose, to make grants to the 
        student groups. 
           Subd. 5.  [INTERNATIONAL CENTER.] For grants to the 
        Minnesota International Center to expand the number of 
        international speakers going into Minnesota classrooms to 
        stimulate global understanding: 
             $40,000     .....     1997
           This grant is available to the extent it is matched by 
        contributions from nonpublic sources. 
           Sec. 5.  [FEDERAL FUNDS.] 
           The expenditures of federal grants and aids as shown in 
        budget change order number 1 dated January 18, 1996, for the 
        department of children, families, and learning are approved and 
        appropriated and may be spent as indicated.  If the funds are 
        spent for purposes other than those indicated in the change 
        order, the department must notify the appropriate committees of 
        the legislature. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 1 to 5 are effective the day following final 
        enactment. 
                                   ARTICLE 12 
                                   TECHNOLOGY 
           Section 1.  [121.95] [EDUCATION TECHNOLOGY IMPROVEMENT 
        CLEARINGHOUSES.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
        children, families, and learning shall establish a grant program 
        for regional clearinghouses for school districts.  The grants 
        must be used to upgrade and refurbish computers that are donated 
        to schools and provide opportunities for student involvement.  
        The purposes of the enterprises are to: 
           (1) serve as centers where business or others may donate 
        new or used computer and other technology for use by Minnesota 
        schools; 
           (2) provide an opportunity for students to upgrade donated 
        and existing school-owned computers so that they are capable of 
        being connected to the internet and local networks; and 
           (3) provide a means of informing schools of available 
        technology and distributing donated and upgraded computers to 
        schools for technology improvements in support of learning.  
           Each clearinghouse must encourage opportunities for 
        students to learn skills, including the technical skills needed 
        to retrofit and upgrade computers.  The clearinghouse shall 
        retain the ability to review equipment for suitability and 
        refuse equipment that does not meet the standards or is not 
        suitable for use in schools.  At a minimum, all donated 
        computers must be suitable for upgrade so that the retrofitted 
        computer can be connected to the internet and a local computer 
        network. 
           Subd. 2.  [GRANTS.] The commissioner shall establish 
        procedures and develop forms for applying for grants under this 
        section.  The grants may be used to purchase needed technology 
        for upgrading donated computers and other donated technology, 
        for the cost of computer distribution, and for the cost of 
        informing businesses and others about technology donations to 
        the clearinghouse.  The commissioner shall develop guidelines 
        for the use and distribution of any computers donated and 
        upgraded through this grant program.  The commissioner may 
        establish priorities and prorate grants to match appropriations 
        for the grant program. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        124C.74, subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A 
        school district may apply for a grant under this subdivision 
        to:  (1) establish connections among school districts, and 
        between school districts and the MNet statewide 
        telecommunications network administered by the department of 
        administration under section 16B.465; or (2) if such a 
        connection meeting minimum electronic connectivity standards is 
        already established, enhance telecommunications capacity for a 
        school district.  The minimum standards of capacity are a 56 
        kilobyte data line and 768 kilobyte ITV connection, subject to 
        change based on the recommendations by the Minnesota education 
        telecommunications council.  A district may submit a grant 
        application for interactive television with higher capacity 
        connections in order to maintain multiple simultaneous 
        connections.  To ensure coordination among school districts, a 
        school district must submit its grant application to the council 
        through an organization that coordinates the applications and 
        connections of at least ten school districts or through an 
        existing technology cooperative.  
           (b) The application must, at a minimum, contain information 
        to document for each applicant school district the following: 
           (1) that the proposed connection meets the minimum 
        standards and employs an open network architecture that will 
        ensure interconnectivity and interoperability with other 
        education institutions and libraries; 
           (2) that the proposed connection and system will be 
        connected to MNet through the department of administration under 
        section 16B.465 and that a network service and management 
        agreement is in place; 
           (3) that the proposed connection and system will be 
        connected to the higher education telecommunication network and 
        that a governance agreement has been adopted which includes 
        agreements between the school district system, a higher 
        education regional council, libraries, and coordinating 
        entities; 
           (4) the telecommunication vendor, which may be MNet, 
        selected to provide service from the district to an MNet hub or 
        to a more cost-effective connection point to MNet; and 
           (5) other information, as determined by the commissioner in 
        consultation with the education telecommunications council, to 
        ensure that connections are coordinated, meet state standards 
        and are cost-effective, and that service is provided in an 
        efficient and cost-effective manner. 
           (c) A grant applicant shall obtain a grant proposal for 
        network services from MNet.  If MNet is not selected as the 
        vendor, the application must provide the reasons for choosing an 
        alternative vendor.  A school district may include, in its grant 
        application, telecommunications access for collaboration with 
        nonprofit arts organizations for the purpose of educational 
        programs, or access for a secondary media center that:  (1) is a 
        member of a multitype library system; (2) is open during periods 
        of the year when classroom instruction is occurring; and (3) has 
        licensed school media staff on site. 
           (d) The Minnesota education telecommunications council 
        shall award grants and the funds shall be dispersed by the 
        commissioner.  The highest priority for these grants shall be to 
        bring school districts up to the minimum connectivity 
        standards.  The telecommunications council shall also give 
        priority to grant proposals from school districts with fewer 
        than 1,000 students which do not have a data connection.  A 
        grant to enhance telecommunications capacity beyond the minimum 
        connectivity standards shall be no more than 75 percent of the 
        maximum grant under this subdivision.  Grant applications for 
        minimum connection and enhanced telecommunications capacity 
        grants must be submitted to the commissioner by a coordinating 
        organization including, but not limited to, service cooperatives 
        and education districts.  For the purposes of this section, a 
        school district includes charter schools under section 120.064.  
        For the purposes of the grant, a school district may include a 
        charter school under section 120.064, or the Faribault academies.
        Based on the award made by the council, all grants under this 
        subdivision shall be paid by the commissioner directly to a 
        school district (unless this application requests that the funds 
        be paid to the coordinating agency).  Nonpublic schools as 
        defined in section 237.065, subdivision 2, located within the 
        district may access the network.  The nonpublic school is 
        responsible for actual costs for connection from the school to 
        the access site. 
           (e) Money awarded under this section may be used only for 
        the purposes explicitly stated in the grant application. 
           Sec. 3.  Minnesota Statutes 1995 Supplement, section 
        124C.74, subdivision 3, is amended to read: 
           Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
        regional public library system may apply for a telecommunication 
        access grant.  The grant must be used to create or expand the 
        capacity of electronic data access and connect the library 
        system with the MNet statewide telecommunications network 
        administered by the department of administration under section 
        16B.465.  Connections must meet minimum system standards of a 56 
        kilobyte data line and 768 kilobyte ITV connection.  To be 
        eligible for a telecommunications access grant, a regional 
        public library system must:  (1) meet the level of local support 
        required under section 134.34; and (2) be open at least 20 hours 
        per week; and (3) provide a local match for the grant with local 
        funds under section 134.46. 
           (b) Any grant award under this subdivision may not be used 
        to substitute for any existing local funds allocated to provide 
        electronic access, or equipment for library staff or the public, 
        or local funds previously dedicated to other library operations. 
           (c) An application for a regional public library 
        telecommunications access grant must, at a minimum, contain 
        information to document the following: 
           (1) that the connection meets the minimum standards and 
        employs an open network architecture that will ensure 
        interconnectivity and interoperability with other libraries and 
        the educational system; 
           (2) that the connection is being established through the 
        most cost-effective means and that the public library has 
        explored and coordinated connections through school districts or 
        other governmental agencies; 
           (3) that the proposed connection and system will be 
        connected to MNet through the department of administration under 
        section 16B.465 and that a network service and management 
        agreement is in place; 
           (4) that the proposed connection and system will be 
        connected to the higher education and to the school district 
        telecommunication networks subject to a governance agreement 
        with one or more school districts and a higher education 
        regional council specifying how the system will be coordinated; 
           (5) the telecommunication vendor, which may be MNet, 
        selected to provide service from the library to an MNet hub or 
        through a more cost-effective connection point to MNet; and 
           (6) other information, as determined by the commissioner, 
        to ensure that connections are coordinated, meet state 
        standards, are cost-effective, and that service is provided in 
        an efficient and cost-effective manner so that libraries 
        throughout the state are connected in as seamless a manner as 
        technically possible. 
           (d) A grant applicant shall obtain a grant proposal for 
        network services from MNet.  If MNet is not selected as the 
        vendor, the application must provide the reasons for choosing an 
        alternative vendor. 
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        134.46, is amended to read: 
           134.46 [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] 
           (a) A regional public library system may apply to the 
        commissioner for telecommunications aid to support data access 
        through regional public library systems, including access to 
        Internet for library staff and the public.  The maximum amount 
        of aid for each public library shall be calculated as follows: 
           (1) multiply $1 times the lesser of the population of the 
        area served by the regional public library system, or the sum of 
        the populations of the participating portions of the system; and 
           (2) deduct an amount equal to the sum of .1 percent times 
        the adjusted net tax capacity for each participating city or 
        county for the year preceding the year the levy is certified. 
           (b) A regional public library must match state aid with 
        local funds equal to .1 percent times the adjusted net tax 
        capacity for each participating city or county for the year 
        preceding the year the levy is certified.  A regional public 
        library that receives a telecommunications access grant under 
        section 124C.74 may use local funds under this section for the 
        grant match in the year the grant is awarded, without a 
        reduction in state aid.  Local matching funds must be an 
        increase in the amount of local funds allocated to support 
        library operations in the year prior to the first year of the 
        telecommunication access grant.  Local matching funds are exempt 
        from section 134.34.  A grant award under this section may not 
        be used to substitute for any existing local funds allocated to 
        provide electronic data access or equipment for library staff or 
        the public, or local funds previously dedicated to other library 
        operations. 
           (c) Telecommunications aid under this section may be used 
        for the: 
           (1) construction, maintenance, and lease costs of data 
        access connections, including Internet connections; 
           (2) purchase, maintenance, professional development, and 
        support of computer hardware and software for data access; 
           (3) cost of technical support for a regional library 
        systems' technology investments, including technical support, 
        personnel, contracted services for technical support, and 
        training; and 
           (4) promotion of electronic access through public libraries 
        for members of the public. 
           (d) If appropriations are insufficient to fully fund aid 
        under this section, the commissioner shall prorate aid payments 
        to participating regional library systems. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        237.065, is amended to read: 
           237.065 [RATES FOR SPECIAL SERVICE TO SCHOOLS.] 
           Subdivision 1.  [BASIC SERVICES.] Each telephone company, 
        including a company that has developed an incentive plan under 
        section 237.625, that provides local telephone service in a 
        service area that includes a school that has classes within the 
        range from kindergarten to 12th grade shall provide, upon 
        request, additional service to the school that is sufficient to 
        ensure access to basic telephone service from each classroom and 
        other areas within the school, as determined by the school 
        board.  Each company shall set a flat rate for this additional 
        service that is less than the company's flat rate for an access 
        line for a business and the same as or greater than the 
        company's flat rate for an access line for a residence in the 
        same local telephone service exchange.  When a company's flat 
        rates for businesses and residences are the same, the company 
        shall use the residential rate for service to schools under this 
        section.  The rate required under this section is available only 
        for a school that installs additional service that includes 
        access to basic telephone service from each classroom and other 
        areas within the school, as determined by the school board. 
           Subd. 2.  [BASIC AND ADVANCED TELECOMMUNICATION 
        SERVICES.] (a) Notwithstanding the provisions of sections 
        237.09, 237.14, 237.60, subdivision 3, and 237.74, each 
        telephone company and telecommunications carrier that provides 
        local telephone service in a service area that includes a school 
        that has classes within the range from kindergarten to grade 12 
        or that includes a public library may provide, upon request, 
        basic and advanced telecommunication services at reduced or no 
        cost to that school or library.  A school or library receiving 
        telecommunications services at reduced or no cost may not resell 
        or sublease the discounted services.  Telecommunications 
        services shall be provided in accordance with Public Law Number 
        104-104.  
           (b) An agent that provides telecommunications services to a 
        school or library may request the favorable rate on behalf of 
        and for the exclusive benefit of the school or library.  The 
        school or library must authorize the agent to make the request 
        of the local telephone company or telecommunications carrier.  
        The telephone company or telecommunications carrier is not 
        required to offer the same price discount to the agent that it 
        would offer to the school district or library.  An agent that 
        receives a price discount for telecommunications services on 
        behalf of a school or library may only resell or sublease the 
        discounted services to that school or library. 
           (c) For the purposes of this subdivision, "school" includes 
        a public school as defined in section 120.05, nonpublic, and 
        church or religious organization schools that provide 
        instruction in compliance with sections 120.101 to 120.102. 
           Sec. 6.  Laws 1995, First Special Session chapter 3, 
        article 12, section 8, subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A grant program 
        is established to help school districts work together and with 
        higher education institutions, businesses, local government 
        units, libraries, and community organizations in order to 
        facilitate individualized learning and manage information by 
        employing technological advances, especially computers and 
        computer-related products, and other advanced industrial 
        technologies supporting school-to-work transitions in 
        manufacturing, engineering, and transportation courses.  
        Recipients shall use grant proceeds to: 
           (1) enhance teaching and learning productivity through the 
        use of technology; 
           (2) develop individual learner classroom-based teaching and 
        learning systems that can be aggregated into site, district, and 
        state frameworks; 
           (3) develop personalized learning plans designed to give 
        learners more responsibility for their learning success and 
        change the role of teacher to learning facilitator; 
           (4) match and allocate resources; 
           (5) create a curriculum environment that is multiplatform; 
           (6) provide user and contributor access to electronic 
        libraries; 
           (7) schedule activities; 
           (8) automate progress reports; 
           (9) increase collaboration between school districts and 
        sites, and with businesses, higher education institutions, 
        libraries, and local government units; 
           (10) correlate state-defined outcomes to curriculum units 
        for each student; 
           (11) increase accountability through a reporting system; 
        and 
           (12) provide technical support, project evaluation, 
        dissemination services, and replication. 
           Sec. 7.  Laws 1995, First Special Session chapter 3, 
        article 12, section 12, subdivision 7, is amended to read: 
           Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] For grants to 
        school districts and regional public library systems to 
        establish connections to MNet according to Minnesota Statutes, 
        section 124C.74: 
             $5,500,000     .....     1996 
             $5,000,000 $10,000,000   .....     1997
           Of these appropriations, up to $300,000 is to pay the 
        transmission costs for programming over the network and costs 
        associated with operating the network.  
           This appropriation is available until June 30, 1997.  These 
        appropriations do not cancel but are available until expended. 
           Sec. 8.  [TECHNOLOGY; TECHNICAL ASSISTANCE.] 
           The commissioner of the department of children, families, 
        and learning shall work with interested and involved 
        organizations including, but not limited to, representatives of 
        school districts, service cooperatives, TIES, education 
        districts, higher education institutions, public libraries, and 
        other government agencies to develop a technology planning guide 
        for school districts.  The department must distribute the guides 
        to school districts and hold regional meetings to discuss the 
        planning process.  The commissioner may consider a school 
        district's technology plan in making technology-related funding 
        decisions.  
           Sec. 9.  [AFTER-SCHOOL PROGRAMS.] 
           The commissioner of children, families, and learning shall 
        establish a process to initiate a competitive grant program to 
        enhance the use of technology in after-school programs.  
        Eligible organizations include school districts, private 
        schools, nonprofit community organizations, public housing 
        agencies, and other successful programs that serve youth. 
           Sec. 10.  [ADVANCEMENT OF TECHNOLOGY IN EDUCATION.] 
           The commissioner shall make a grant to the center for 
        applied research and educational improvement, college of 
        education and human development, University of Minnesota.  The 
        grant must be used to publicize information about the use of new 
        methods and curriculum for using telecommunications and 
        computers in support of learning.  Information on new 
        techniques, uses, and curricula must be distributed throughout 
        the state.  The center may use electronic or print distribution 
        to reach classrooms and teachers in all parts of Minnesota. 
           Sec. 11.  [COOPERATIVE PURCHASING.] 
           The department of children, families, and learning shall 
        work with the department of administration to make available to 
        public libraries, public and nonpublic schools, political 
        subdivisions and state agencies, state level contracts from 
        multiple sources, including manufacturers and software 
        publishers, for the purchase of instructional and administrative 
        software, computers, video, and network hardware.  Public and 
        nonpublic schools, public libraries, and political subdivisions 
        may participate in the contracts if it meets their purchasing 
        needs. 
           Sec. 12.  [TECHNOLOGY INCENTIVES PILOT PROGRAM.] 
           Subdivision 1.  [TECHNOLOGY INCENTIVES PILOT PROGRAM LEVY.] 
        The commissioner of children, families, and learning shall 
        select one district for a technology incentives pilot program.  
        The purpose of the pilot program is to provide secondary school 
        students with individual access to technology throughout the 
        student's secondary educational program, to integrate computers 
        into classroom learning activities, and to provide incentives 
        for students to stay in school and achieve high educational 
        standards. 
           Subd. 2.  [APPLICATION.] In order to be considered for the 
        technology incentives pilot program, a district shall submit a 
        plan developed cooperatively with one or more private partners 
        to the commissioner of children, families, and learning in the 
        form and manner prescribed by the commissioner.  The plan shall 
        include goals for improving access to technology, student 
        achievement, and school attendance for students participating in 
        the pilot program; a description of the public and private 
        partnership involved in developing the technology incentives 
        plan; and the responsibilities of each partner.  In selecting a 
        district for the technology incentives pilot program, the 
        commissioner shall take into consideration the number of 
        students in a site who are from families whose household income 
        is less than 185 percent of the federal poverty level. 
           Subd. 3.  [TECHNOLOGY INCENTIVES LEVY.] A district may levy 
        an amount not to exceed one-fourth of the cost of the district's 
        lease purchase agreement under subdivision 4.  The district may 
        not levy under this section for more than three years following 
        the first year of the lease purchase agreement. 
           Subd. 4.  [USE OF LEVY.] A district shall use the 
        technology levy to purchase a computer for each ninth grade 
        student enrolled in one or more participating school sites.  A 
        portion may be used to purchase or provide technical support or 
        maintenance services directly related to the program.  The 
        district may purchase computers for this program under a lease 
        purchase agreement.  Notwithstanding section 123.37, subdivision 
        1, a district may enter into a four-year lease purchase 
        agreement after complying with the other contracting provisions 
        of section 123.37.  A ninth grade student must have exclusive 
        use of a computer assigned by this program throughout the time 
        the student is enrolled in the district issuing the computer or 
        enrolled at a participating school site.  Notwithstanding 
        sections 120.71 to 120.76, the district may sell the computer to 
        the student when the student receives a high school diploma from 
        the district.  The district shall consider ability to pay in 
        establishing the purchase prices of computers. 
           Subd. 5.  [REPORT.] By January 1, 1999, the selected 
        district shall submit a report to the commissioner on the 
        program with recommendations for expanding it or making changes. 
           Sec. 13.  [TECHNOLOGY INTEGRATION MATCHING GRANTS.] 
           A technology integration matching grant program is 
        established.  Grant amounts shall be allocated to districts on a 
        per pupil basis.  To be eligible, a district must match the 
        grant with $2 of local funds for each $1 of state funds and must 
        have identified a person to act as a technology coordinator for 
        the district.  The grant and matching funds must be used to 
        provide for training in districts to help staff learn how to 
        integrate the use of technology in the classroom with 
        alternative curriculum and instructional approaches, and to 
        purchase computer hardware.  Students may be included in 
        training funded through this grant.  The department shall 
        establish guidelines and an application process for the grant. 
           Sec. 14.  [TECHNOLOGY RELATED FUND BALANCE ADJUSTMENTS.] 
           Notwithstanding Minnesota Statutes, section 124A.26, a 
        district must not receive an aid or levy reduction for general 
        education revenue according to that section for fiscal year 
        1996.  Aid adjustments shall be paid in fiscal year 1997.  The 
        department shall make the appropriate levy adjustments.  This 
        revenue must be transferred to the district's capital equipment 
        account or the operating capital account for technology purposes.
        This provision assumes an aid payment of approximately 
        $1,300,000 to be paid from general education and a levy of 
        $800,000. 
           Sec. 15.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal year designated. 
           Subd. 2.  [EDUCATION TECHNOLOGY CLEARINGHOUSE AND UPGRADE 
        SYSTEM.] For the education technology clearinghouse and upgrade 
        system under section 1: 
              $250,000     .....    1997
           Any amount of this appropriation not used shall be 
        available for grants under section 7. 
           Subd. 3.  [AFTER-SCHOOL PROGRAMS.] For after-school program 
        grants under section 9: 
              $1,000,000     .....    1997 
           The appropriation is available until June 30, 1998. 
           Subd. 4.  [ELECTRONIC CURRICULUM.] For support of 
        electronic curriculum development: 
              $860,000     .....    1997 
           (a) Of this amount, $750,000 shall be used for a pilot 
        project for districts or a group of districts to implement and 
        demonstrate an electronic curriculum library.  The library must 
        be aligned with the content standards of the graduation rule and 
        must include benchmarks to track students' progress.  The 
        department shall establish guidelines and an application process 
        to implement this project.  The department shall give additional 
        consideration to applicants who work with private sector experts 
        and vendors in developing the library. 
           (b) Of this amount, $50,000 is for a grant to the 
        environmental conservation section of the Minneapolis library 
        for technology investments and for the expansion on the Internet 
        of environmentally related information. 
           (c) Of this amount, $20,000 is for a grant to the center 
        for applied research and educational improvement to publicize 
        information about the use of new methods and curriculum for 
        using telecommunications and computers in support of learning. 
           (d) Of this amount, $40,000 is for a grant to an 
        organization with a demonstrated proficiency in applying 
        computer hardware and software to reading improvement for 
        at-risk students.  The grant must be used to advance these 
        techniques in other education organizations.  
           Subd. 5.  [TECHNOLOGY INTEGRATION GRANTS.] For the purposes 
        of sections 13 and 14: 
              $3,500,000     .....    1997 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 5, 7, and 11 are effective the day following final 
        enactment. 
                                   ARTICLE 13 
                             CONFORMING AMENDMENTS
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        43A.316, subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
        the terms defined in this subdivision have the meaning given 
        them.  
           (a)  [COMMISSIONER.] "Commissioner" means the commissioner 
        of employee relations.  
           (b)  [EMPLOYEE.] "Employee" means: 
           (1) a person who is a public employee within the definition 
        of section 179A.03, subdivision 14, who is insurance eligible 
        and is employed by an eligible employer; 
           (2) an elected public official of an eligible employer who 
        is insurance eligible; or 
           (3) a person employed by a labor organization or employee 
        association certified as an exclusive representative of 
        employees of an eligible employer or by another public employer 
        approved by the commissioner, so long as the plan meets the 
        requirements of a governmental plan under United States Code, 
        title 29, section 1002(32).  
           (c)  [ELIGIBLE EMPLOYER.] "Eligible employer" means: 
           (1) a public employer within the definition of section 
        179A.03, subdivision 15, that is a town, county, city, school 
        district as defined in section 120.02, service cooperative as 
        defined in section 123.582, intermediate district as defined in 
        section 136C.02, subdivision 7 136D.01, cooperative center for 
        vocational education as defined in section 123.351, regional 
        management information center as defined in section 121.935, or 
        an education unit organized under the joint powers action, 
        section 471.59; or 
           (2) an exclusive representative of employees, as defined in 
        paragraph (b); or 
           (3) another public employer approved by the commissioner. 
           (d)  [EXCLUSIVE REPRESENTATIVE.] "Exclusive representative" 
        means an exclusive representative as defined in section 179A.03, 
        subdivision 8.  
           (e)  [LABOR-MANAGEMENT COMMITTEE.] "Labor-management 
        committee" means the committee established by subdivision 4.  
           (f)  [PROGRAM.] "Program" means the statewide public 
        employees insurance program created by subdivision 3. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        65B.132, is amended to read: 
           65B.132 [STUDENT DISCOUNTS; ELIGIBILITY.] 
           Any insurance company providing discounts on automobile 
        insurance premiums to eligible persons attending colleges and 
        universities must provide the discount to eligible students 
        enrolled in technical colleges accredited by the department of 
        children, families, and learning. 
           Sec. 3.  Minnesota Statutes 1994, section 120.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AGE LIMITATIONS; PUPILS.] All schools 
        supported in whole or in part by state funds are public schools. 
        Admission to a public school, except a technical college, is 
        free to any person who resides within the district which 
        operates the school, who is under 21 years of age, and who 
        satisfies the minimum age requirements imposed by this section.  
        Notwithstanding the provisions of any law to the contrary, the 
        conduct of all students under 21 years of age attending a public 
        secondary school shall be governed by a single set of reasonable 
        rules and regulations promulgated by the school board.  No 
        person shall be admitted to any public school (1) as a 
        kindergarten pupil, unless the pupil is at least five years of 
        age on September 1 of the calendar year in which the school year 
        for which the pupil seeks admission commences; or (2) as a 1st 
        grade student, unless the pupil is at least six years of age on 
        September 1 of the calendar year in which the school year for 
        which the pupil seeks admission commences or has completed 
        kindergarten; except that any school board may establish a 
        policy for admission of selected pupils at an earlier age. 
           Sec. 4.  Minnesota Statutes 1994, section 120.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SEVERANCE PAY.] A district shall pay severance 
        pay to a teacher who is placed on unrequested leave of absence 
        by the district as a result of an agreement under this section.  
        A teacher is eligible under this subdivision if the teacher: 
           (1) is a teacher, as defined in section 125.12, subdivision 
        1, but not a superintendent; 
           (2) has a continuing contract with the district according 
        to section 125.12, subdivision 4. 
           The amount of severance pay shall be equal to the teacher's 
        salary for the school year during which the teacher was placed 
        on unrequested leave of absence minus the gross amount the 
        teacher was paid during the 12 months following the teacher's 
        termination of salary, by an entity whose teachers by statute or 
        rule must possess a valid Minnesota teaching license, and minus 
        the amount a teacher receives as severance or other similar pay 
        according to a contract with the district or district policy.  
        These entities include, but are not limited to, the school 
        district that placed the teacher on unrequested leave of 
        absence, another school district in Minnesota, an education 
        district, an intermediate school district, an ECSU, a board 
        formed under section 471.59, a technical college, a state 
        residential academy, the Minnesota center for arts education, a 
        vocational center, or a special education cooperative.  These 
        entities do not include a school district in another state, a 
        Minnesota public post-secondary institution, or a state agency.  
        Only amounts earned by the teacher as a substitute teacher or in 
        a position requiring a valid Minnesota teaching license shall be 
        subtracted.  A teacher may decline any offer of employment as a 
        teacher without loss of rights to severance pay. 
           To determine the amount of severance pay that is due for 
        the first six months following termination of the teacher's 
        salary, the district may require the teacher to provide 
        documented evidence of the teacher's employers and gross 
        earnings during that period.  The district shall pay the teacher 
        the amount of severance pay it determines to be due from the 
        proceeds of the levy for this purpose.  To determine the amount 
        of severance pay that is due for the second six months of the 12 
        months following the termination of the teacher's salary, the 
        district may require the teacher to provide documented evidence 
        of the teacher's employers and gross earnings during that 
        period.  The district shall pay the teacher the amount of 
        severance pay it determines to be due from the proceeds of the 
        levy for this purpose. 
           A teacher who receives severance pay under this subdivision 
        waives all further reinstatement rights under section 125.12, 
        subdivision 6a or 6b.  If the teacher receives severance pay, 
        the teacher shall not receive credit for any years of service in 
        the district paying severance pay prior to the year in which the 
        teacher becomes eligible to receive severance pay.  
           The severance pay is subject to section 465.72.  The 
        district may levy annually according to section 124.912, 
        subdivision 1, for the severance pay. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        121.15, subdivision 1, is amended to read: 
           Subdivision 1.  [CONSULTATION.] A school district shall 
        consult with the commissioner of children, families, and 
        learning before developing any plans and specifications to 
        construct, remodel, or improve the building or site of an 
        educational facility, other than a technical college, for which 
        the estimated cost exceeds $100,000.  This consultation shall 
        occur before a referendum for bonds, solicitation for bids, or 
        use of capital expenditure facilities revenue according to 
        section 124.243, subdivision 6, clause (2).  The commissioner 
        may require the district to participate in a management 
        assistance plan before conducting a review and comment on the 
        project. 
           Sec. 6.  Minnesota Statutes 1994, section 121.914, 
        subdivision 1, is amended to read: 
           Subdivision 1.  The "operating debt" of a school district 
        means the net negative undesignated fund balance in all school 
        district funds, other than capital expenditure, building 
        construction, debt service, and trust and agency, and 
        post-secondary vocational technical education funds, calculated 
        as of June 30 of each year in accordance with the uniform 
        financial accounting and reporting standards for Minnesota 
        school districts. 
           Sec. 7.  Minnesota Statutes 1994, section 121.915, is 
        amended to read: 
           121.915 [REORGANIZATION OPERATING DEBT.] 
           The "reorganization operating debt" of a school district 
        means the net negative undesignated fund balance in all school 
        district funds, other than capital expenditure, building 
        construction, debt redemption, and trust and agency, and 
        post-secondary vocational technical education funds, calculated 
        in accordance with the uniform financial accounting and 
        reporting standards for Minnesota school districts as of: 
           (1) June 30 of the fiscal year before the first year that a 
        district receives revenue according to section 124.2725; or 
           (2) June 30 of the fiscal year before the effective date of 
        reorganization according to section 122.22 or 122.23. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        121.935, subdivision 1a, is amended to read: 
           Subd. 1a.  [CENTER FOR DISTRICTS WITH ALTERNATIVE SYSTEMS.] 
        Districts that operate alternative systems approved by the state 
        board according to section 121.936 commissioner according to 
        section 121.932, subdivision 4a, may create one regional 
        management information center under section 471.59.  The center 
        shall have all of the powers authorized under section 471.59.  
           The center board may purchase or lease equipment.  It may 
        not employ any staff but may enter into a term contract for 
        services.  A person providing services according to a contract 
        with the center board is not a state employee.  
           The department shall provide the center all services that 
        are provided to regional centers formed under subdivision 1, 
        including transferring software and providing accounting 
        assistance.  
           Sec. 9.  Minnesota Statutes 1994, section 122.32, 
        subdivision 1, is amended to read: 
           Subdivision 1.  If there be any organized school district 
        not maintaining a classified school within the district, except 
        those districts which have a contract with the a state 
        university board, or with the board of regents of the University 
        of Minnesota for the education of all the children of the 
        district, such district shall hereby be dissolved as of the date 
        the district ceases to maintain a classified school.  Any such 
        district not maintaining a classified school shall forthwith be 
        attached by order of the county board to such district 
        maintaining classified elementary or secondary schools upon 
        notice and hearing as provided in section 122.22 for the 
        attachment of dissolved districts. 
           Sec. 10.  Minnesota Statutes 1994, section 122.535, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SEVERANCE PAY.] A district shall pay severance 
        pay to a teacher who is placed on unrequested leave of absence 
        by the district as a result of the agreement.  A teacher is 
        eligible under this subdivision if the teacher: 
           (1) is a teacher, as defined in section 125.12, subdivision 
        1, but not a superintendent; 
           (2) has a continuing contract with the district according 
        to section 125.12, subdivision 4. 
           The amount of severance pay shall be equal to the teacher's 
        salary for the school year during which the teacher was placed 
        on unrequested leave of absence minus the gross amount the 
        teacher was paid during the 12 months following the teacher's 
        termination of salary, by an entity whose teachers by statute or 
        rule must possess a valid Minnesota teaching license, and minus 
        the amount a teacher receives as severance or other similar pay 
        according to a contract with the district or district policy.  
        These entities include, but are not limited to, the school 
        district that placed the teacher on unrequested leave of 
        absence, another school district in Minnesota, an education 
        district, an intermediate school district, an ECSU, a board 
        formed under section 471.59, a technical college, a state 
        residential academy, the Minnesota center for arts education, a 
        vocational center, or a special education cooperative.  These 
        entities do not include a school district in another state, a 
        Minnesota public post-secondary institution, or a state agency.  
        Only amounts earned by the teacher as a substitute teacher or in 
        a position requiring a valid Minnesota teaching license shall be 
        subtracted.  A teacher may decline any offer of employment as a 
        teacher without loss of rights to severance pay. 
           To determine the amount of severance pay that is due for 
        the first six months following termination of the teacher's 
        salary, the district may require the teacher to provide 
        documented evidence of the teacher's employers and gross 
        earnings during that period.  The district shall pay the teacher 
        the amount of severance pay it determines to be due from the 
        proceeds of the levy for this purpose.  To determine the amount 
        of severance pay that is due for the second six months of the 12 
        months following the termination of the teacher's salary, the 
        district may require the teacher to provide documented evidence 
        of the teacher's employers and gross earnings during that 
        period.  The district shall pay the teacher the amount of 
        severance pay it determines to be due from the proceeds of the 
        levy for this purpose.  
           A teacher who receives severance pay under this subdivision 
        waives all further reinstatement rights under section 125.12, 
        subdivision 6a or 6b.  If the teacher receives severance pay, 
        the teacher shall not receive credit for any years of service in 
        the district paying severance pay prior to the year in which the 
        teacher becomes eligible to receive severance pay. 
           The severance pay is subject to section 465.72.  The 
        district may levy annually according to section 124.912, 
        subdivision 1, for the severance pay.  
           Sec. 11.  Minnesota Statutes 1994, section 122.895, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICABILITY.] This section applies to: 
           (1) an education district organized according to sections 
        122.91 to 122.95; 
           (2) a cooperative vocational center organized according to 
        section 123.351; 
           (3) a joint powers district or board organized according to 
        section 471.59 which employs teachers to provide instruction; 
           (4) a joint vocational technical district organized 
        according to sections 136C.60 to 136C.69; 
           (5) an intermediate district organized according to chapter 
        136D; 
           (6) (5) an educational cooperative service unit a service 
        cooperative which employs teachers to provide instruction; and 
           (7) (6) school districts participating in an agreement for 
        the cooperative provision of special education services to 
        children with disabilities according to section 120.17, 
        subdivision 4. 
           Sec. 12.  Minnesota Statutes 1994, section 123.351, 
        subdivision 10, is amended to read: 
           Subd. 10.  [REVENUE.] A secondary vocational cooperative 
        may be eligible for revenue under section 124.575 124.573. 
           Sec. 13.  Minnesota Statutes 1994, section 123.37, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  The board may authorize its superintendent or 
        business manager, or technical college president in those 
        districts operating a technical college, to lease, purchase, and 
        contract for goods and services within the budget as approved by 
        the board, provided that any transaction in an amount exceeding 
        the minimum amount for which bids are required must first be 
        specifically authorized by the board and must fulfill all other 
        applicable requirements in subdivision 1. 
           Sec. 14.  Minnesota Statutes 1994, section 123.38, 
        subdivision 2, is amended to read: 
           Subd. 2.  The board shall take charge of and control all 
        cocurricular school activities of the teachers and children of 
        the public schools in that district held in the school building 
        or school grounds or under the supervision or direction of the 
        school board and to that end adopt rules and regulations for the 
        conduct of these activities in which the schools of the district 
        or any class or pupils therein may participate.  All money 
        received on account of such activities shall be turned over to 
        the school district treasurer, who shall keep the same in the 
        general fund or the technical colleges fund, if applicable, to 
        be disbursed for expenses and salaries connected with the 
        activities, or otherwise, by the board upon properly allowed 
        itemized claims. 
           No cocurricular activity shall be participated in by the 
        teachers or pupils in the public schools of such district, nor 
        shall the school name or any allied name be used in connection 
        therewith, except by consent and direction of the board. 
           Sec. 15.  Minnesota Statutes 1994, section 123.38, 
        subdivision 2b, is amended to read: 
           Subd. 2b.  (a) The board may take charge of and control all 
        extracurricular activities of the teachers and children of the 
        public schools in the district.  Extracurricular activities 
        shall mean all direct and personal services for public school 
        pupils for their enjoyment that are managed and operated under 
        the guidance of an adult or staff member.  
           (b) Extracurricular activities have all of the following 
        characteristics: 
           (1) they are not offered for school credit nor required for 
        graduation; 
           (2) they are generally conducted outside school hours, or 
        if partly during school hours, at times agreed by the 
        participants, and approved by school authorities; 
           (3) the content of the activities is determined primarily 
        by the pupil participants under the guidance of a staff member 
        or other adult. 
           (c) If the board does not take charge of and control 
        extracurricular activities, these activities shall be 
        self-sustaining with all expenses, except direct salary costs 
        and indirect costs of the use of school facilities, met by dues, 
        admissions, or other student fundraising events.  The general 
        fund or the technical colleges fund, if applicable, shall 
        reflect only those salaries directly related to and readily 
        identified with the activity and paid by public funds.  Other 
        revenues and expenditures for extra curricular activities must 
        be recorded according to the "Manual of Instruction for Uniform 
        Student Activities Accounting for Minnesota School Districts and 
        Area Vocational-Technical Colleges."  Extracurricular activities 
        not under board control must have an annual financial audit and 
        must also be audited annually for compliance with this section. 
           (d) If the board takes charge of and controls 
        extracurricular activities, any or all costs of these activities 
        may be provided from school revenues and all revenues and 
        expenditures for these activities shall be recorded in the same 
        manner as other revenues and expenditures of the district.  
           (e) If the board takes charge of and controls 
        extracurricular activities, no such activity shall be 
        participated in by the teachers or pupils in the district, nor 
        shall the school name or any allied name be used in connection 
        therewith, except by consent and direction of the board. 
           Sec. 16.  Minnesota Statutes 1994, 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 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, or the board of 
        trustees of the Minnesota state colleges and universities.  
        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. 17.  Minnesota Statutes 1995 Supplement, section 
        124.71, subdivision 2, is amended to read: 
           Subd. 2.  Commissioner as used in sections 124.71 to 124.76 
        means the commissioner of children, families, and learning or, 
        for certificates for a technical college, the chancellor of 
        vocational technical education. 
           Sec. 18.  Minnesota Statutes 1995 Supplement, section 
        124.912, subdivision 1, is amended to read: 
           Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
        district may levy the amount authorized for liabilities of 
        dissolved districts pursuant to section 122.45; the amounts 
        necessary to pay the district's obligations under section 
        268.06, subdivision 25; the amounts necessary to pay for job 
        placement services offered to employees who may become eligible 
        for benefits pursuant to section 268.08; the amounts necessary 
        to pay the district's obligations under section 127.05; the 
        amounts authorized by section 122.531; the amounts necessary to 
        pay the district's obligations under section 122.533; and for 
        severance pay required by sections 120.08, subdivision 3, and 
        122.535, subdivision 6. 
           (b) An education district that negotiates a collective 
        bargaining agreement for teachers under section 122.937 may 
        certify to the department of children, families, and learning 
        the amount necessary to pay all of the member districts' 
        obligations and the education district's obligations under 
        section 268.06, subdivision 25. 
           The department of children, families, and learning must 
        allocate the levy amount proportionately among the member 
        districts based on adjusted net tax capacity.  The member 
        districts must levy the amount allocated. 
           (c) Each year, a member district of an education district 
        that levies under this subdivision must transfer the amount of 
        revenue certified under paragraph (b) to the education district 
        board according to this subdivision.  By June 20 and November 30 
        of each year, an amount must be transferred equal to: 
           (1) 50 percent times 
           (2) the amount certified in paragraph (b) minus homestead 
        and agricultural credit aid allocated for that levy according to 
        section 273.1398, subdivision 6. 
           Sec. 19.  Minnesota Statutes 1995 Supplement, section 
        125.05, subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
        teaching shall license teachers, as defined in section 125.03, 
        subdivision 1, except for supervisory personnel, as defined in 
        section 125.03, subdivision 4. 
           (b) The state board of education shall license supervisory 
        personnel as defined in section 125.03, subdivision 4.  
           (c) The state board of technical colleges, according to 
        section 136C.04, shall license post-secondary vocational and 
        adult vocational teachers, support personnel, and supervisory 
        personnel in technical colleges. 
           (d) Licenses under the jurisdiction of the board of 
        teaching and the state board of education must be issued through 
        the licensing section of the department of children, families, 
        and learning. 
           Sec. 20.  Minnesota Statutes 1994, section 125.09, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MANDATORY REPORTING.] A school board shall 
        report to the board of teaching, the state board of education, 
        or the state board of technical colleges trustees of the 
        Minnesota state colleges and universities, whichever has 
        jurisdiction over the teacher's license, when its teacher is 
        discharged or resigns from employment after a charge is filed 
        with the school board under section 125.17, subdivisions 4, 
        clauses (1), (2), and (3), and 5, or after charges are filed 
        that are ground for discharge under section 125.12, subdivision 
        8, clauses (a), (b), (c), (d), and (e), or when a teacher is 
        suspended or resigns while an investigation is pending under 
        section 125.12, subdivision 8, clauses (a), (b), (c), (d), and 
        (e); 125.17, subdivisions 4, clauses (1), (2), and (3), and 5; 
        or 626.556.  The report must be made to the board within ten 
        days after the discharge, suspension, or resignation has 
        occurred.  The board to which the report is made shall 
        investigate the report for violation of subdivision 1 and the 
        reporting school board shall cooperate in the investigation.  
        Notwithstanding any provision in chapter 13 or any law to the 
        contrary, upon written request from the licensing board having 
        jurisdiction over the teacher's license, a school board or 
        school superintendent shall provide the licensing board with 
        information about the teacher from the school district's files, 
        any termination or disciplinary proceeding, any settlement or 
        compromise, or any investigative file.  Upon written request 
        from the appropriate licensing board, a school board or school 
        superintendent may, at the discretion of the school board or 
        school superintendent, solicit the written consent of a student 
        and the student's parent to provide the licensing board with 
        information that may aid the licensing board in its 
        investigation and license proceedings.  The licensing board's 
        request need not identify a student or parent by name.  The 
        consent of the student and the student's parent must meet the 
        requirements of chapter 13 and Code of Federal Regulations, 
        title 34, section 99.30.  The licensing board may provide a 
        consent form to the school district.  Any data transmitted to 
        any board under this section shall be private data under section 
        13.02, subdivision 12, notwithstanding any other classification 
        of the data when it was in the possession of any other agency. 
           The board to which a report is made shall transmit to the 
        attorney general's office any record or data it receives under 
        this subdivision for the sole purpose of having the attorney 
        general's office assist that board in its investigation.  When 
        the attorney general's office has informed an employee of the 
        appropriate licensing board in writing that grounds exist to 
        suspend or revoke a teacher's license to teach, that licensing 
        board must consider suspending or revoking or decline to suspend 
        or revoke the teacher's license within 45 days of receiving a 
        stipulation executed by the teacher under investigation or a 
        recommendation from an administrative law judge that 
        disciplinary action be taken. 
           Sec. 21.  Minnesota Statutes 1994, section 125.1385, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY; LIMITS.] The state university 
        board of trustees of the Minnesota state colleges and 
        universities and the board of regents of the University of 
        Minnesota may develop programs to exchange faculty between 
        colleges or schools of education and school districts, subject 
        to section 125.138. 
           The programs must be used to assist in improving teacher 
        education by involving current teachers in education courses and 
        placing post-secondary faculty in elementary and secondary 
        classrooms.  Programs must include exchanges that extend beyond 
        the immediate service area of the institution to address the 
        needs of different types of schools, students, and teachers. 
           Sec. 22.  Minnesota Statutes 1994, 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 a person to 
        successfully complete a skills examination in reading, writing, 
        and mathematics 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. 23.  Minnesota Statutes 1994, section 125.60, 
        subdivision 2, is amended to read: 
           Subd. 2.  The board of any district may grant an extended 
        leave of absence without salary to any full- or part-time 
        elementary, or secondary, or technical college teacher who has 
        been employed by the district for at least five years and has at 
        least ten years of allowable service, as defined in section 
        354.05, subdivision 13, or the bylaws of the appropriate 
        retirement association or ten years of full-time teaching 
        service in Minnesota public elementary, and secondary, and 
        technical colleges schools.  The maximum duration of an extended 
        leave of absence pursuant to this section shall be determined by 
        mutual agreement of the board and the teacher at the time the 
        leave is granted and shall be at least three but no more than 
        five years.  An extended leave of absence pursuant to this 
        section shall be taken by mutual consent of the board and the 
        teacher.  If the school board denies a teacher's request, it 
        shall provide reasonable justification for the denial.  
           Sec. 24.  Minnesota Statutes 1994, section 125.611, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CRITERIA.] For purposes of this section, 
        "teacher" means a teacher as defined in section 125.03, 
        subdivision 1, who:  
           (a) is employed in the a public elementary, or secondary, 
        or technical colleges school in the state and 
           (b) either 
           (1)(i) has not less than 15 total years of full-time 
        teaching service in elementary, secondary, and technical 
        colleges, or at least 15 years of allowable service as defined 
        in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 
        354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 
        354A.093; 354A.094; or Laws 1982, chapter 578, article II, 
        section 1 and 
           (ii) has or will have attained the age of 55 years but less 
        than 65 years as of the June 30 in the school year during which 
        an application for an early retirement incentive is made, or 
           (2) has not less than 30 total years of full-time teaching 
        service in elementary, secondary, and technical colleges, or at 
        least 30 years of allowable service as defined in sections 
        354.05, subdivision 13; 354.092; 354.093; 354.094; 354.53; 
        354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 354A.093; 
        354A.094; or Laws 1982, chapter 578, article II, section 1. 
           Sec. 25.  Minnesota Statutes 1995 Supplement, section 
        126.151, subdivision 1, is amended to read: 
           Subdivision 1.  [ACTIVITIES OF THE ORGANIZATION.] Any 
        student enrolled in a vocational technical education program 
        approved by the state boards board of education and technical 
        colleges or the board of trustees of the Minnesota state 
        colleges and universities may belong to a vocational student 
        organization that is operated as an integral part of the 
        vocational program.  The commissioner of children, families, and 
        learning and the chancellor of technical colleges board of 
        trustees of the Minnesota state colleges and universities may 
        provide necessary technical assistance and leadership at the 
        state level for administration of approved vocational student 
        organizations and fiscal accounts, including administration of 
        state and national conferences. 
           Sec. 26.  Minnesota Statutes 1994, section 126.151, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ACCOUNTS OF THE ORGANIZATION.] The commissioner 
        and the state board of technical trustees of the Minnesota state 
        colleges and universities may retain dues and other money 
        collected on behalf of students participating in approved 
        vocational student organizations and may deposit the money in 
        separate accounts.  The money in these accounts shall be 
        available for expenditures for state and national activities 
        related to specific organizations.  Administration of money 
        collected under this section is not subject to the provisions of 
        chapters 15, 16A, and 16B, and may be deposited outside the 
        state treasury.  Money shall be administered under the policies 
        of the applicable state board or agency relating to 
        post-secondary and secondary vocational student organizations 
        and is subject to audit by the legislative auditor.  Any 
        unexpended money shall not cancel but may be carried forward to 
        the next fiscal year. 
           Sec. 27.  [136D.01] [INTERMEDIATE DISTRICT.] 
           "Intermediate district" means a district with a cooperative 
        program which has been established under Laws 1967, chapter 822, 
        as amended; Laws 1969, chapter 775, as amended; and Laws 1969, 
        chapter 1060, as amended, offering integrated services for 
        secondary, post-secondary, and adult students in the areas of 
        vocational education, special education, and other authorized 
        services. 
           Sec. 28.  Minnesota Statutes 1994, section 136D.23, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PUBLIC AGENCY.] The joint school board 
        shall be a public agency of the participating school districts 
        and may receive and disburse federal and state funds made 
        available to it or to the participating school districts, 
        including moneys described in section 136C.07. 
           Sec. 29.  Minnesota Statutes 1994, section 136D.83, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PUBLIC AGENCY.] The joint school board 
        shall be a public agency of the participating school districts 
        and may receive and disburse federal and state funds made 
        available to it or to the participating school districts, 
        including moneys described in section 136C.07.  
           Sec. 30.  Minnesota Statutes 1994, section 144.4165, is 
        amended to read: 
           144.4165 [TOBACCO PRODUCTS PROHIBITED IN PUBLIC SCHOOLS.] 
           No person shall at any time smoke, chew, or otherwise 
        ingest tobacco or a tobacco product in a public school, as 
        defined in section 120.05, subdivision 2.  This prohibition 
        extends to all facilities, whether owned, rented, or leased, and 
        all vehicles that a school district owns, leases, rents, 
        contracts for, or controls.  This prohibition does not apply to 
        a technical college.  Nothing in this section shall prohibit the 
        lighting of tobacco by an adult as a part of a traditional 
        Indian spiritual or cultural ceremony.  For purposes of this 
        section, an Indian is a person who is a member of an Indian 
        tribe as defined in section 257.351, subdivision 9. 
           Sec. 31.  [REPEALER.] 
           Minnesota Statutes 1994, sections 121.11, subdivision 15; 
        and 136D.75, are repealed. 
                                   ARTICLE 14
                                COST MANAGEMENT
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        121.904, subdivision 4c, is amended to read: 
           Subd. 4c.  [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 
        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 same calendar year the appropriation is made.  
           (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 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 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 children, families, and learning the amount 
        available to reduce the levy recognition percent computed under 
        this subdivision by January 5 of each year.  The commissioner of 
        children, families, and learning must notify school districts of 
        a change in the levy recognition percent by January 15 of the 
        same month. 
           (d) When the levy recognition percent is increased or 
        decreased as provided in this subdivision, a special aid 
        adjustment shall be made to each school district with an 
        operating referendum levy:  
           (i) When the levy recognition percent is increased from the 
        prior fiscal year, the commissioner of children, families, and 
        learning shall calculate the difference between (1) the amount 
        of the levy under section 124A.03, that is recognized as revenue 
        for the current fiscal year according to subdivision 4a; and (2) 
        the amount of the levy, under section 124A.03, that would have 
        been recognized as revenue for the current fiscal year had the 
        percentage according to subdivision 4a, not been increased.  The 
        commissioner shall reduce other aids due the district by the 
        amount of the difference.  This aid reduction shall be in 
        addition to the aid reduction required because of the increase 
        pursuant to this subdivision of the levy recognition percent.  
           (ii) When the levy recognition percent is reduced from the 
        prior fiscal year, a special adjustment payment shall be made to 
        each school district with an operating referendum levy that 
        received an aid reduction when the levy recognition percent was 
        last increased.  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 children, families, and learning 
        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.  
           (e) The commissioner of finance shall transfer from the 
        general fund to the education aids appropriations specified by 
        the commissioner of children, families, and learning, 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. 2.  Minnesota Statutes 1995 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 in a program approved by the commissioner and has an 
        individual education plan is counted as the ratio of the number 
        of hours of assessment and education service to 825 with a 
        minimum of 0.28, but not more than one. 
           (b) 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 825.  
           (c) 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. 
           (d) A kindergarten pupil who is not included in paragraph 
        (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
        thereafter. 
           (e) A pupil who is in any of grades 1 to 6 is counted as 
        1.06 pupil units for fiscal year 1995 and thereafter. 
           (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
        is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
        fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
        counted as 1.25 pupil units.  For fiscal year 1999 and later 
        years, a pupil who is in any of grades 7 to 12 is counted as 1.2 
        pupil units. 
           (g) For fiscal year 1996 and fiscal year 1997, a pupil who 
        is in the post-secondary enrollment options program is counted 
        as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
        post-secondary enrollment options program is counted as 1.25 
        pupil units.  For fiscal year 1999 and later years, a pupil who 
        is in the post-secondary enrollment options program is counted 
        as 1.2 pupil units. 
           (h) In fiscal year 1998, the sum of pupil units used in 
        computing a district's general education revenue and referendum 
        revenue may not be reduced by more than two percent due to the 
        reduction in the secondary pupil weight from 1.3 as specified in 
        paragraphs (f) and (g).  In fiscal year 1999 and later years, 
        the sum of pupil units used in computing a district's general 
        education revenue and referendum revenue may not be decreased by 
        more than four percent due to the reduction in the secondary 
        weight from 1.3 as specified in paragraphs (f) and (g). 
           Sec. 3.  Laws 1995, First Special Session chapter 3, 
        article 14, section 5, is amended to read: 
           Sec. 5.  [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.] 
           The appropriations for the 1998-99 biennium for programs 
        contained in this act shall be $2,943,900,000 $2,968,714,000 for 
        fiscal year 1998 and $3,076,600,000 $3,022,210,000 for fiscal 
        year 1999, plus or minus any adjustments due to variance in 
        pupil forecasts, levies, or other factors generating 
        entitlements for the general revenue program.  These amounts 
        shall first be allocated to fully fund the general revenue 
        program.  Amounts remaining shall be allocated to other programs 
        in proportion to the fiscal year 1997 appropriations or to 
        entitlements generated by existing law for those programs for 
        each year, up to the amount of the entitlement or the fiscal 
        year 1997 appropriations.  Any amounts remaining after 
        allocation to these other programs shall be maintained for 
        allocation recommendations by the governor and legislature in 
        the 1997 session. 
           Sec. 4.  [LEVY RECOGNITION; REFERENDUM.] 
           Notwithstanding Minnesota Statutes 1995 Supplement, section 
        121.904, subdivision 4a, the levy recognition percentage for 
        fiscal year 1996 and later applied to the operating referendum 
        levy is 31. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 and 4 are effective the day following final 
        enactment. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 3, 1996, 3:40 p.m.