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Office of the Revisor of Statutes

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

                             CHAPTER 254-S.F.No. 86 
                  An act relating to education; providing for technical 
                  and other changes to kindergarten through grade 12 
                  education provisions; amending Minnesota Statutes 
                  1998, sections 120B.11, subdivision 5; 121A.25, 
                  subdivision 1; 123A.22, subdivisions 6 and 7; 123A.48, 
                  subdivision 19; 123A.485, subdivision 1; 123B.14, 
                  subdivision 5; 123B.31; 123B.70, subdivision 1; 
                  123B.86, subdivision 1; 123B.88, subdivisions 1, 13, 
                  and 22; 123B.95, subdivision 2; 124D.11, subdivision 
                  5; 124D.114; 124D.21; 124D.38, subdivision 9; 124D.40; 
                  124D.41; 124D.42, subdivisions 4, 6, and 7; 124D.43; 
                  124D.45, subdivisions 1 and 2; 124D.53, subdivision 2; 
                  124D.61; 124D.83, subdivision 2; 124D.895; 124D.896; 
                  126C.14; 126C.16, subdivisions 1 and 2; 126C.41, 
                  subdivision 1; 126C.48, subdivisions 2 and 5; and 
                  127A.41, subdivision 1; Minnesota Statutes 1999 
                  Supplement, sections 123A.27; 124D.454, subdivision 8; 
                  124D.81, subdivision 1; 125A.79, subdivision 1; 
                  126C.10, subdivision 9; 126C.15, subdivision 3; 
                  126C.22, subdivision 4; 126C.44; and 127A.45, 
                  subdivision 13; Laws 1998, chapter 398, article 5, 
                  section 50, subdivision 1; proposing coding for new 
                  law in Minnesota Statutes, chapter 120A; repealing 
                  Minnesota Statutes 1998, sections 124D.128, 
                  subdivision 4; 124D.38, subdivision 10; and 124D.45, 
                  subdivision 3; Laws 1995, First Special Session 
                  chapter 3, article 5, section 9; Laws 1997, chapter 
                  192, section 19. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [120A.02] [DEPARTMENT OF CHILDREN, FAMILIES, 
        AND LEARNING.] 
           The department of children, families, and learning shall 
        carry out the provisions of chapters 120A to 129C and other 
        related education provisions under law. 
           Sec. 2.  Minnesota Statutes 1998, section 120B.11, 
        subdivision 5, is amended to read: 
           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; 
           (4) information about district and learning site progress 
        in realizing previously adopted improvement plans; and 
           (5) the amount and type of revenue attributed to each 
        education site as defined in section 123B.04, subdivision 2. 
           (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. 
           Sec. 3.  Minnesota Statutes 1998, section 121A.25, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to Laws 1987, chapter 295 sections 121A.26 to 
        121A.29 and 121A.61, subdivision 3. 
           Sec. 4.  Minnesota Statutes 1998, section 123A.22, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMMISSIONER APPROVAL.] Prior to the 
        commencement of the operation of any center Before a center 
        begins operation, the commissioner must approve the agreement 
        establishing the center entered into by participating districts 
        shall be approved by the commissioner. 
           Sec. 5.  Minnesota Statutes 1998, section 123A.22, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LAWS GOVERNING INDEPENDENT SCHOOL DISTRICTS 
        APPLY.] As of the effective date of the creation of any center 
        as contained in the agreement establishing the center, the 
        organization, operation, maintenance, and conduct of the affairs 
        of the center shall be governed by the general laws relating to 
        independent school districts of the state unless provided 
        otherwise herein or by statute passed hereafter in statute. 
           Sec. 6.  Minnesota Statutes 1999 Supplement, section 
        123A.27, is amended to read: 
           123A.27 [RESERVED REVENUE FOR DISTRICT COOPERATION.] 
           A district that was a member of an intermediate school 
        district organized pursuant to chapter 136D on July 1, 1996, 
        must place a portion of its general education revenue in a 
        reserved account for instructional services from entities formed 
        for cooperative services for special education programs and 
        secondary vocational programs.  The amount reserved is equal to 
        the levy made according to Minnesota Statutes 1993 Supplement, 
        section 124.2727, subdivision 6, for taxes payable in 1994 
        divided by the actual pupil units in the intermediate school 
        district for fiscal year 1995 times the number of actual pupil 
        units in the school district in 1995.  The district must use 
        5/11 of the revenue for special education and 6/11 of the 
        revenue for secondary vocational education.  The district must 
        demonstrate that the revenue is being used to provide the full 
        range of special education and secondary vocational programs and 
        services available to each child served by the intermediate.  
        The secondary vocational programs and services must meet the 
        requirements established in an articulation agreement developed 
        between the commissioner of children, families, and learning and 
        the board of trustees of the Minnesota state colleges and 
        universities. 
           A district that was a member of an education district 
        organized pursuant to section 123A.15 on July 1, 1999, must 
        place a portion of its general education revenue in a reserve 
        account for instructional services from entities formed for 
        cooperative services.  Services may include secondary vocational 
        programs, special education programs, staff development, and 
        gifted and talented instruction.  The amount reserved is equal 
        to $50 per pupil unit times the actual number of pupil units in 
        the district. 
           Sec. 7.  Minnesota Statutes 1998, section 123A.48, 
        subdivision 19, is amended to read: 
           Subd. 19.  [BONDS; ELECTION.] The board of the newly 
        created district, when constituted as provided in Minnesota 
        Statutes 1990, section 122.23, subdivision 17, may provide for 
        an election of that district on the issuance of bonds.  It may 
        issue and sell bonds authorized at the election, or bonds 
        authorized at an election previously held in any preexisting 
        district wholly included within the newly created district, or 
        bonds for a purpose for which an election is not required by 
        law.  The actions may be taken at any time after the date of the 
        county auditor's order issued under Minnesota Statutes 1990, 
        section 122.23, subdivision 17, and before or after the date 
        upon which the consolidation becomes effective for other 
        purposes, and taxes for the payment of the bonds shall be levied 
        upon all taxable property in the newly created district.  No 
        bonds shall be delivered to purchasers until 30 days after the 
        date of the county auditor's order.  If within this period a 
        notice of appeal from the county auditor's order to the district 
        court is filed in accordance with section 123A.49, no bonds 
        shall be delivered by the newly created district to purchasers 
        unless: 
           (1) the county auditor's order is affirmed by final order 
        of the district court in the special proceeding, and a period of 
        30 days from the service of the final order expires without an 
        appeal being commenced; or 
           (2) if an appeal is taken, the order is affirmed and the 
        time for petitioning for further review has expired.  
        Notwithstanding the pendency of the appeal, if all of the 
        territory of one and only one independent district maintaining a 
        secondary school is included in the newly created district, and 
        if the net tax capacity of taxable property in the territory 
        comprises 90 percent or more of the net tax capacity of all 
        taxable property in the newly created district, then the board 
        may issue, sell, and deliver any bonds voted by the preexisting 
        independent district and any bonds voted or otherwise authorized 
        by the newly created district, and the bonds must be paid by the 
        levy of taxes upon the property within the territory of the 
        preexisting independent district and within the other areas, if 
        any, that are finally determined to be properly included within 
        the newly created district.  In any election held in the newly 
        created district as authorized in the preceding sentence, all 
        qualified electors residing within the area of that district as 
        defined in the county auditor's order shall be entitled to vote, 
        but the votes cast by residents of former districts or portions 
        of former districts included in the area, other than the 
        independent district maintaining the secondary school, shall be 
        received and counted separately.  The bonds must not be issued 
        and sold unless authorized by a majority of the votes cast 
        thereon by electors of the independent district maintaining the 
        secondary school, and also by a majority of the votes cast 
        thereon by electors residing within the entire area of the newly 
        created district.  
           Sec. 8.  Minnesota Statutes 1998, section 123A.485, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
        been reorganized after June 30, 1994, under section 123A.48 is 
        eligible for consolidation transition revenue.  Revenue is equal 
        to the sum of aid under subdivision 2 and levy under subdivision 
        3.  Consolidation transition revenue may only be used according 
        to this section.  Revenue must be used for the following 
        purposes and may be distributed among these purposes at the 
        discretion of the district: 
           (1) to offer early retirement incentives as provided by 
        section 123A.48, subdivision 23; 
           (2) to reduce operating debt as defined in section 123B.82; 
           (3) to enhance learning opportunities for students in the 
        reorganized district; and 
           (4) for other costs incurred in the reorganization. 
           Revenue received and utilized under clause (3) or (4) may 
        be expended for operating, facilities, and/or equipment.  
        Revenue received under this section must not be included in the 
        determination of the reduction under section 124A.26, 
        subdivision 1.  
           Sec. 9.  Minnesota Statutes 1998, section 123B.14, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INSUFFICIENT FUNDS.] In the event that valid 
        orders are presented to the treasurer for payment, and there are 
        insufficient funds on hand to pay them, the treasurer shall 
        receive, endorse and process them in accordance with section 
        124.06 123B.12. 
           Sec. 10.  Minnesota Statutes 1998, section 123B.31, is 
        amended to read: 
           123B.31 [LIMITATION OF SECTIONS.] 
           Material contained in sections 120B.09, 120B.14, 120B.35, 
        121A.21, 121A.24, 122A.44, 122A.69, 123A.22, 123A.24, 123B.02, 
        subdivisions 1 to 15 and 17 to 20, 123B.09, 123B.11, 123B.14, 
        123B.143, 123B.147, 123B.23, 123B.49, 123B.51, 123B.52, 123B.88, 
        124D.02, 124D.09, and 124D.51, unless expressly stated 
        otherwise, relates only to independent school districts. 
           Sec. 11.  Minnesota Statutes 1998, section 123B.70, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER APPROVAL.] In determining 
        whether to give a school facility a positive, negative, or 
        unfavorable review and comment, the commissioner must evaluate 
        the proposals for facilities using the information provided 
        under section 123B.71, subdivision 9. 
           The commissioner may submit a negative review and comment 
        for a project if the district has not submitted its capital 
        facilities plan required under section 124.243, subdivision 1, 
        to the commissioner. 
           Sec. 12.  Minnesota Statutes 1998, section 123B.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
        provide equal transportation within the district for all school 
        children to any school when transportation is deemed necessary 
        by the school board because of distance or traffic condition in 
        like manner and form as provided in sections 123B.88 and 124.223 
        123B.92, when applicable. 
           Sec. 13.  Minnesota Statutes 1998, section 123B.88, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROVIDING TRANSPORTATION.] The board may 
        provide for the transportation of pupils to and from school and 
        for any other purpose.  The board may also provide for the 
        transportation of pupils to schools in other districts for 
        grades and departments not maintained in the district, including 
        high school, at the expense of the district, when funds are 
        available therefor and if agreeable to the district to which it 
        is proposed to transport the pupils, for the whole or a part of 
        the school year, as it may deem advisable, and subject to its 
        rules.  In any district, the board must arrange for the 
        attendance of all pupils living two miles or more from the 
        school, except pupils whose transportation privileges have been 
        voluntarily surrendered under subdivision 2, or whose privileges 
        have been revoked under section 123B.91, subdivision 1, clause 
        (6), or 123B.90, paragraph (b), or whose privileges have been 
        voluntarily surrendered under subdivision 1a subdivision 2.  The 
        district may provide for the transportation of or the boarding 
        and rooming of the pupils who may be more economically and 
        conveniently provided for by that means.  Arrangements for 
        attendance may include a requirement that parents or guardians 
        request transportation before it is provided.  The board must 
        provide transportation to and from the home of a child with a 
        disability not yet enrolled in kindergarten when special 
        instruction and services under sections 125A.03 to 125A.24, 
        125A.26 to 125A.48, and 125A.65 are provided in a location other 
        than in the child's home.  When transportation is provided, 
        scheduling of routes, establishment of the location of bus 
        stops, manner and method of transportation, control and 
        discipline of school children and any other matter relating 
        thereto must be within the sole discretion, control, and 
        management of the board.  The district may provide for the 
        transportation of pupils or expend a reasonable amount for room 
        and board of pupils whose attendance at school can more 
        economically and conveniently be provided for by that means or 
        who attend school in a building rented or leased by a district 
        within the confines of an adjacent district. 
           Sec. 14.  Minnesota Statutes 1998, section 123B.88, 
        subdivision 13, is amended to read: 
           Subd. 13.  [AREA LEARNING CENTER PUPILS.] Districts may 
        provide bus transportation along school bus routes established 
        to provide nonregular transportation as defined in section 
        123B.92, subdivision 1, paragraph (e)(2)(ii), when space is 
        available, for pupils attending programs at an area learning 
        center.  The transportation is only permitted between schools 
        and if it does not increase the district's expenditures for 
        transportation.  The cost of these services shall be considered 
        part of the authorized cost for nonregular transportation for 
        the purpose of section 123B.92. 
           Sec. 15.  Minnesota Statutes 1998, section 123B.88, 
        subdivision 22, is amended to read: 
           Subd. 22.  [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 
        Districts may provide bus transportation along school bus routes 
        established to provide nonregular transportation as defined in 
        section 123B.92, subdivision 1, paragraph (c), clause (2), when 
        space is available, for pupils attending programs at a 
        post-secondary institution under the post-secondary enrollment 
        options program.  The transportation is permitted only if it 
        does not increase the district's expenditures for 
        transportation.  Fees collected for this service under section 
        123B.36, subdivision 1, paragraph (13), shall be subtracted from 
        the authorized cost for nonregular transportation for the 
        purpose of section 123B.92. 
           Sec. 16.  Minnesota Statutes 1998, section 123B.95, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FINANCES.] The board must submit to the annual 
        meeting an estimate of the expenses of the district for the 
        coming year for a school term as determined by the board and for 
        such other specified purposes as the board may deem proper.  If 
        the annual meeting fails to vote a sufficient tax to maintain 
        the district for such time, the board must levy such tax 
        pursuant to and within the limitations of sections 124.226, 
        124D.22, 126C.40 to 126C.45, and 126C.48; but no board shall 
        expend any money or incur any liability for any purpose beyond 
        the sum appropriated by vote of the district for such purpose, 
        or levied by the board pursuant to this subdivision, or on hand 
        and applicable thereto. 
           Sec. 17.  Minnesota Statutes 1998, section 124D.11, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
        subdivision 2, paragraph (b), special education aid must be paid 
        to a charter school according to section 125A.76, as though it 
        were a school district.  The charter school may charge tuition 
        to the district of residence as provided in section 125A.11.  
        The charter school shall allocate its special education levy 
        equalization revenue to the resident districts of the pupils 
        attending the charter school.  The districts of residence shall 
        levy as though they were participating in a cooperative, as 
        provided in section 125A.77, subdivision 3. 
           Sec. 18.  Minnesota Statutes 1998, section 124D.114, is 
        amended to read: 
           124D.114 [LACTOSE REDUCED MILK.] 
           (a) If a nonpublic school or district receives school lunch 
        aid under section 124D.111 or participates in the school 
        breakfast program and receives a written request from the parent 
        of a pupil who is lactose intolerant, then the nonpublic school 
        or district must make available lactose reduced milk; milk 
        fortified with lactase in liquid, tablet, granular, or other 
        form; or milk to which lactobacillus acidophilus has been added 
        for the pupil.  
           (b) Notwithstanding any law, local ordinance, or local 
        regulation to the contrary, a school may pour or serve portions 
        of any product required by this section from a large container 
        of the product at the time and place the pupil is being served. 
           Sec. 19.  Minnesota Statutes 1998, section 124D.21, is 
        amended to read: 
           124D.21 [ADDITIONAL COMMUNITY EDUCATION REVENUE.] 
           (a) A district that is eligible under section 124D.20, 
        subdivision 2, may levy an amount up to the amount authorized by 
        Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
        (2).  
           (b) Beginning with levies for fiscal year 1995, this levy 
        must be reduced each year by the amount of any increase in the 
        levying district's general community education revenue under 
        section 124D.20, subdivision 3, for that fiscal year over the 
        amount received by the district under Minnesota Statutes 1992, 
        section 124.2713, subdivision 3, for fiscal year 1994. 
           (c) The proceeds of the levy may be used for the purposes 
        set forth in section 124D.20, subdivision 8. 
           Sec. 20.  Minnesota Statutes 1998, section 124D.38, 
        subdivision 9, is amended to read: 
           Subd. 9.  [COMMISSION.] "Commission" means the Minnesota 
        commission on national and community service established in 
        section 121.703 124D.385. 
           Sec. 21.  Minnesota Statutes 1998, section 124D.40, is 
        amended to read: 
           124D.40 [YOUTH WORKS GRANTS.] 
           Subdivision 1.  [APPLICATION.] An eligible organization 
        interested in receiving a grant under sections 124D.39 to 
        124D.44 may prepare and submit to the commission, and beginning 
        January 1, 1997, the council, an application that complies with 
        section 124D.41. 
           Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
        January 1, 1997, the council must use any state appropriation 
        and any available federal funds, including any grant received 
        under federal law, to award grants to establish programs for 
        youth works meeting the requirements of section 124D.41.  At 
        least one grant each must be available for a metropolitan 
        proposal, a rural proposal, and a statewide proposal.  If a 
        portion of the suburban metropolitan area is not included in the 
        metropolitan grant proposal, the statewide grant proposal must 
        incorporate at least one suburban metropolitan area.  In 
        awarding grants, the commission and, beginning January 1, 1997, 
        the council may select at least one residential proposal and one 
        nonresidential proposal, provided the proposals meet or exceed 
        the criteria in section 124D.41. 
           Sec. 22.  Minnesota Statutes 1998, section 124D.41, is 
        amended to read: 
           124D.41 [GRANT APPLICATIONS.] 
           Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
        seeking federal or state grant money under sections 124D.39 to 
        124D.44 shall prepare and submit to the commission and, 
        beginning January 1, 1997, the council an application that meets 
        the requirements of this section.  The commission and, beginning 
        January 1, 1997, the council must develop, and the applying 
        organizations must comply with, the form and manner of the 
        application. 
           Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
        application must: 
           (1) propose a program to provide participants the 
        opportunity to perform community service to meet specific unmet 
        community needs, and participate in classroom, work-based, and 
        service-learning; 
           (2) assess the community's unmet educational, human, 
        environmental, and public safety needs, the resources and 
        programs available for meeting those needs, and how young people 
        participated in assessing community needs; 
           (3) describe the educational component of the program, 
        including classroom hours per week, classroom time for 
        participants to reflect on the program experience, and 
        anticipated academic outcomes related to the service experience; 
           (4) describe the work to be performed, the ratio of youth 
        participants to crew leaders and mentors, and the expectations 
        and qualifications for crew leaders and mentors; 
           (5) describe local funds or resources available to meet the 
        match requirements of section 124D.44; 
           (6) describe any funds available for the program from 
        sources other than the requested grant; 
           (7) describe any agreements with local businesses to 
        provide participants with work-learning opportunities and 
        mentors; 
           (8) describe any agreement with local post-secondary 
        educational institutions to offer participants course credits 
        for their community service-learning experience; 
           (9) describe any agreement with a local high school or an 
        alternative learning center to provide remedial education, 
        credit for community service work and work-based learning, or 
        graduate equivalency degrees; 
           (10) describe any pay for service or other program delivery 
        mechanism that will provide reimbursement for benefits conferred 
        or recover costs of services participants perform; 
           (11) describe how local resources will be used to provide 
        support and assistance for participants to encourage them to 
        continue with the program, fulfill the terms of the contract, 
        and remain eligible for any postservice benefit; 
           (12) describe the arbitration mechanism for dispute 
        resolution required under section 124D.42, subdivision 2; 
           (13) describe involvement of community leaders in 
        developing broad-based support for the program; 
           (14) describe the consultation and sign-off process to be 
        used with any local labor organization representing employees in 
        the area engaged in work similar to that proposed for the 
        program to ensure that no current employees or available 
        employment positions will be displaced by program participants; 
           (15) certify to the commission and, beginning January 1, 
        1997, the council, and to any certified bargaining 
        representatives representing employees of the applying 
        organization that the project will not decrease employment 
        opportunities that would be available without the project; will 
        not displace current employees including any partial 
        displacement in the form of reduced hours of work other than 
        overtime, wages, employment benefits, or regular seasonal work; 
        will not impair existing labor agreements; and will not result 
        in the substitution of project funding for preexisting funds or 
        sources of funds for ongoing work; 
           (16) describe the length of the required service period, 
        which may not be less than six months or more than two years, a 
        method to incorporate a participant's readiness to advance or 
        need for postservice financial assistance into individual 
        service requirements, and any opportunity for participating part 
        time or in another program; 
           (17) describe a program evaluation plan that contains 
        cost-effectiveness measures, measures of participant success 
        including educational accomplishments, job placements, community 
        contributions, and ongoing volunteer activities, outcome 
        measures based on a preprogram and postprogram survey of 
        community rates of arrest, incarceration, teenage pregnancy, and 
        other indicators of youth in trouble, and a list of local 
        resources dedicated to reducing these rates; 
           (18) describe a three-year financial plan for maintaining 
        the program; 
           (19) describe the role of local youth in developing all 
        aspects of the grant proposal; and 
           (20) describe the process by which the local private 
        industry council participated in, and reviewed the grant 
        application. 
           Sec. 23.  Minnesota Statutes 1998, section 124D.42, 
        subdivision 4, is amended to read: 
           Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
        benefit for a participant provided under subdivision 3, 
        paragraph (a), (b), or (c), must be available for seven years 
        after completing the program and may only be used for: 
           (1) paying a student loan; 
           (2) costs of attending an institution of higher education; 
        or 
           (3) expenses incurred by a student in an approved youth 
        apprenticeship program under sections 124D.46 to 124D.49 or in a 
        registered apprenticeship program approved by the department of 
        labor and industry. 
        Financial assistance provided under this subdivision must be in 
        the form of vendor payments whenever possible.  Any postservice 
        benefits provided by federal funds or vouchers may be used as a 
        downpayment on, or closing costs for, purchasing a first home. 
           (b) Postservice benefits are to be used to develop skills 
        required in occupations where numbers of jobs are likely to 
        increase.  The commission, in consultation with the workforce 
        development council, and beginning January 1, 1997, the 
        workforce development council, must determine how the benefits 
        may be used in order to best prepare participants with skills 
        that build on their service-learning and equip them for 
        meaningful employment. 
           (c) The postservice benefit must not be included in 
        determining financial need when establishing eligibility or 
        award amounts for financial assistance programs under chapter 
        136A. 
           Sec. 24.  Minnesota Statutes 1998, section 124D.42, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
        beginning January 1, 1997, the council must, within available 
        resources, ensure an opportunity for each participant to have 
        three weeks of training in a residential setting.  If offered, 
        each training session must: 
           (1) orient each participant in the nature, philosophy, and 
        purpose of the program; 
           (2) build an ethic of community service through general 
        community service training; and 
           (3) provide additional training as it determines necessary. 
           (b) Each grantee organization shall also train participants 
        in skills relevant to the community service opportunity. 
           Sec. 25.  Minnesota Statutes 1998, section 124D.42, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
        grantee organization must assess the educational level of each 
        entering participant.  Each grantee shall work to enhance the 
        educational skills of each participant.  The commission and, 
        beginning January 1, 1997, the council may coordinate or 
        contract with educational institutions or other providers for 
        educational services and evaluation.  All grantees shall give 
        priority to educating and training participants who do not have 
        a high school diploma or its equivalent, or who cannot afford 
        post-secondary training and education. 
           Sec. 26.  Minnesota Statutes 1998, section 124D.43, is 
        amended to read: 
           124D.43 [PRIORITY GIVEN TO ELIGIBLE ORGANIZATION MEETING 
        SPECIFIC GOALS.] 
           The commission and, beginning January 1, 1997, the council 
        must give priority to an eligible organization proposing a 
        program that meets the goals of sections 124D.39 to 124D.42, and 
        that: 
           (1) involves youth in a meaningful way in all stages of the 
        program, including assessing community needs, preparing the 
        application, and assuming postservice leadership and mentoring 
        responsibilities; 
           (2) serves a community with significant unmet needs; 
           (3) provides an approach that is most likely to reduce 
        arrest rates, incarceration rates, teenage pregnancy, and other 
        indicators of troubled youth; 
           (4) builds linkages with existing, successful programs; and 
           (5) can be operational quickly. 
           Sec. 27.  Minnesota Statutes 1998, section 124D.45, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
        organization shall report to the commission and, beginning 
        January 1, 1997, the council at the time and on the matters 
        requested by the commission and, beginning January 1, 1997, the 
        council. 
           Sec. 28.  Minnesota Statutes 1998, section 124D.45, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
        January 1, 1997, the council must report semiannually to the 
        legislature with interim recommendations to change the program. 
           Sec. 29.  Minnesota Statutes 1999 Supplement, section 
        124D.454, subdivision 8, is amended to read: 
           Subd. 8.  [USE OF AID.] The aid provided pursuant to under 
        this section shall be paid only for services rendered as 
        designated in subdivision 2 or for the costs designated in 
        subdivision 3 which are incurred in according to this section 
        for transition programs for children with a disability which are 
        approved by the commissioner of children, families, and learning 
        and operated in accordance with rules promulgated by the 
        commissioner.  These rules shall be subject to the restrictions 
        provided in section 124D.453, subdivision 6.  The procedure for 
        application for approval of these programs shall be as provided 
        in section 125A.75, subdivisions 4 and 6, and the application 
        review process shall be conducted by the office of lifework 
        development in the department. 
           Sec. 30.  Minnesota Statutes 1998, section 124D.53, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROGRAMS FUNDED.] Adult basic education programs 
        established under section 124D.52 and approved by the 
        commissioner are eligible for revenue aid under this section. 
           Sec. 31.  Minnesota Statutes 1998, section 124D.61, is 
        amended to read: 
           124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
           A district which receives aid pursuant to section 124.273 
        124D.65 must comply with the following program requirements: 
           (1) to the extent possible, the district must avoid 
        isolating children of limited English proficiency for a 
        substantial part of the school day; and 
           (2) in predominantly nonverbal subjects, such as art, 
        music, and physical education, pupils of limited English 
        proficiency shall be permitted to participate fully and on an 
        equal basis with their contemporaries in public school classes 
        provided for these subjects.  To the extent possible, the 
        district must assure to pupils enrolled in a program for limited 
        English proficient students an equal and meaningful opportunity 
        to participate fully with other pupils in all extracurricular 
        activities. 
           Sec. 32.  Minnesota Statutes 1999 Supplement, section 
        124D.81, subdivision 1, is amended to read: 
           Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
        commissioner of children, families, and learning must make 
        grants to no fewer than six American Indian language and culture 
        education programs.  At least three programs must be in urban 
        areas and at least three must be on or near reservations.  The 
        board of a local district, a participating school or a group of 
        boards may develop a proposal for grants in support of American 
        Indian language and culture education programs.  Proposals may 
        provide for contracts for the provision of program components by 
        nonsectarian nonpublic, community, tribal, or alternative 
        schools.  The commissioner shall prescribe the form and manner 
        of application for grants, and no grant shall be made for a 
        proposal not complying with the requirements of sections 126.45 
        124D.71 to 126.55 124D.82.  The commissioner must submit all 
        proposals to the state advisory task force on American Indian 
        language and culture education programs for its recommendations 
        concerning approval, modification, or disapproval and the 
        amounts of grants to approved programs. 
           Sec. 33.  Minnesota Statutes 1998, section 124D.83, 
        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 
        126C.10, subdivision 2, less $170, times the difference between 
        (i) the resident pupil units as defined in section 124A.02 
        126C.05, subdivision 15 6, in average daily membership, 
        excluding section 126C.05, subdivision 13, and (ii) the number 
        of pupils for the current school year, weighted according to 
        section 126C.05, subdivision 1, receiving benefits under section 
        123B.42 or 123B.44 or for which the school is receiving 
        reimbursement under section 124D.69; 
           (2) adding to the result in clause (1) an amount equal to 
        the product of the formula allowance under section 126C.10, 
        subdivision 2, less $300 times the tribal contract compensation 
        revenue pupil units; 
           (3) subtracting from the result in clause (2) 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 124D.69; 
           (4) dividing the result in clause (3) by the sum of the 
        resident pupil units in average daily membership, excluding 
        section 126C.05, subdivision 13, plus the tribal contract 
        compensation revenue pupil units; and 
           (5) multiplying the sum of the resident pupil units, 
        including section 126C.05, subdivision 13, in average daily 
        membership plus the tribal contract compensation revenue pupil 
        units by the lesser of $1,500 or the result in clause (4). 
           Sec. 34.  Minnesota Statutes 1998, section 124D.895, is 
        amended to read: 
           124D.895 [PARENTAL INVOLVEMENT PROGRAMS.] 
           Subdivision 1.  [PROGRAM GOALS.] The department, in 
        consultation with the state curriculum advisory committee, must 
        develop guidelines and model plans for parental involvement 
        programs that will: 
           (1) engage the interests and talents of parents or 
        guardians in recognizing and meeting the emotional, 
        intellectual, and physical needs of their school-age children; 
           (2) promote healthy self-concepts among parents or 
        guardians and other family members; 
           (3) offer parents or guardians a chance to share and learn 
        about educational skills, techniques, and ideas; 
           (4) provide creative learning experiences for parents or 
        guardians and their school-age children, including involvement 
        from parents or guardians of color; 
           (5) encourage parents to actively participate in their 
        district's curriculum advisory committee under section 
        126.666 120B.11 in order to assist the school board in improving 
        children's education programs; and 
           (6) encourage parents to help in promoting school 
        desegregation/integration. 
           Subd. 2.  [PLAN CONTENTS.] Model plans for a parental 
        involvement program must include at least the following: 
           (1) program goals; 
           (2) means for achieving program goals; 
           (3) methods for informing parents or guardians, in a timely 
        way, about the program; 
           (4) strategies for ensuring the full participation of 
        parents or guardians, including those parents or guardians who 
        lack literacy skills or whose native language is not English, 
        including involvement from parents or guardians of color; 
           (5) procedures for coordinating the program with 
        kindergarten through grade 12 curriculum, with parental 
        involvement programs currently available in the community, with 
        the PER process under sections 126.661 120B.10 to 
        126.67 120B.11, and with other education facilities located in 
        the community; 
           (6) strategies for training teachers and other school staff 
        to work effectively with parents and guardians; 
           (7) procedures for parents or guardians and educators to 
        evaluate and report progress toward program goals; and 
           (8) a mechanism for convening a local community advisory 
        committee composed primarily of parents or guardians to advise a 
        district on implementing a parental involvement program. 
           Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
        model plans must include: 
           (1) educational opportunities for families that enhance 
        children's learning development; 
           (2) educational programs for parents or guardians on 
        families' educational responsibilities and resources; 
           (3) the hiring, training, and use of parental involvement 
        liaison workers to coordinate family involvement activities and 
        to foster communication among families, educators, and students; 
           (4) curriculum materials and assistance in implementing 
        home and community-based learning activities that reinforce and 
        extend classroom instruction and student motivation; 
           (5) technical assistance, including training to design and 
        carry out family involvement programs; 
           (6) parent resource centers; 
           (7) parent training programs and reasonable and necessary 
        expenditures associated with parents' attendance at training 
        sessions; 
           (8) reports to parents on children's progress; 
           (9) use of parents as classroom volunteers, or as 
        volunteers in before and after school programs for school-age 
        children, tutors, and aides; 
           (10) soliciting parents' suggestions in planning, 
        developing, and implementing school programs; 
           (11) educational programs and opportunities for parents or 
        guardians that are multicultural, gender fair, and disability 
        sensitive; 
           (12) involvement in a district's curriculum advisory 
        committee or a school building team under section 126.666 
        120B.11; and 
           (13) opportunities for parent involvement in developing, 
        implementing, or evaluating school and district 
        desegregation/integration plans. 
           Sec. 35.  Minnesota Statutes 1998, section 124D.896, is 
        amended to read: 
           124D.896 [DESEGREGATION/INTEGRATION AND INCLUSIVE EDUCATION 
        RULES.] 
           (a) By January 10, 1999, the commissioner shall make 
        propose rules relating to desegregation/integration and 
        inclusive education. 
           (b) In adopting a rule related to school 
        desegregation/integration, the commissioner shall address the 
        need for equal educational opportunities for all students and 
        racial balance as defined by the commissioner. 
           Sec. 36.  Minnesota Statutes 1999 Supplement, section 
        125A.79, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of 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, equipment, and transportation services 
        eligible for revenue under section 125A.76; plus 
           (2) expenditures for tuition bills received under sections 
        125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
        under sections section 125A.76, subdivision 2, and 124.3202, 
        subdivision 1; minus 
           (3) revenue for teachers' salaries, contracted services, 
        supplies, and equipment under sections 124.3202 and 124A.76 
        section 125A.76; minus 
           (4) tuition receipts under sections 125A.03 to 125A.24 and 
        125A.65 for services eligible for revenue under sections 
        124.3202, subdivision 1, and 124A.76 section 125A.76, 
        subdivision 2. 
           (b) "General revenue" means for fiscal year 1996, the sum 
        of the general education revenue according to section 126C.10, 
        subdivision 1, as adjusted according to section 127A.47, 
        subdivision 7, plus the total referendum revenue according to 
        section 126C.17, subdivision 4.  For fiscal years 1997 and 
        later, "general revenue" means the sum of the general education 
        revenue according to section 126C.10, subdivision 1, as adjusted 
        according to section 127A.47, subdivisions 7 and 8, plus the 
        total referendum revenue minus transportation sparsity revenue 
        minus total operating capital revenue.  
           (c) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (d) "Program growth factor" means 1.044 for fiscal year 
        2002 and 1.02 for fiscal year 2003 and later. 
           Sec. 37.  Minnesota Statutes 1999 Supplement, section 
        126C.10, subdivision 9, is amended to read: 
           Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
        supplemental revenue allowance for fiscal year 1994 and later 
        fiscal years equals the district's supplemental revenue for 
        fiscal year 1993 divided by the district's 1992-1993 resident 
        pupil units. 
           (b) A district's supplemental revenue allowance is reduced 
        for fiscal year 1995 and later according to subdivision 12. 
           (c) A district's supplemental revenue equals the 
        supplemental revenue allowance, if any, times its adjusted 
        marginal cost pupil units for that year.  
           (d) A district may cancel its supplemental revenue by 
        notifying the commissioner of education prior to June 30, 1994.  
        A district that is reorganizing under section 122A.35 123A.35, 
        123A.46, or 123A.48 may cancel its supplemental revenue by 
        notifying the commissioner of children, families, and learning 
        before July 1 of the year of the reorganization.  If a district 
        cancels its supplemental revenue according to this paragraph, 
        its supplemental revenue allowance for fiscal year 1993 for 
        purposes of subdivision 12 and section 124A.03, subdivision 3b, 
        equals zero. 
           Sec. 38.  Minnesota Statutes 1998, section 126C.14, is 
        amended to read: 
           126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
           If a district's general education levy is determined 
        according to section 126C.13, subdivision 3, an amount must be 
        deducted from state aid authorized in this chapter and chapters 
        120B, 122A, 123A, 123B, 124B, 124D, 125A, and 127A, receivable 
        for the same school year, and from other state payments 
        receivable for the same school year authorized in chapter 273.  
        The aid in section 124D.111 must not be reduced. 
           The amount of the deduction equals the difference between: 
           (1) the general education tax rate, according to section 
        126C.13, times the district's adjusted net tax capacity used to 
        determine the general education aid for the same school year; 
        and 
           (2) the district's general education revenue, excluding 
        transition revenue and supplemental revenue, for the same school 
        year, according to section 126C.10. 
           Sec. 39.  Minnesota Statutes 1999 Supplement, section 
        126C.15, subdivision 3, is amended to read: 
           Subd. 3.  [RECOMMENDATION.] A school site decision-making 
        team, as defined in section 123B.04, subdivision 3 2, paragraph 
        (a), or the instruction and curriculum advisory committee under 
        section 120B.11, if the school has no school site decision team, 
        shall recommend how the compensatory education revenue will be 
        used to carry out the purpose of this section. 
           Sec. 40.  Minnesota Statutes 1998, section 126C.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
        under subdivision 3, the referendum authority under section 
        126C.17 and the levy authority under section 124.912, 
        subdivisions 2 and 3, of a district must be converted by the 
        department according to this section. 
           Sec. 41.  Minnesota Statutes 1998, section 126C.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RATE ADJUSTMENT.] The department must adjust a 
        district's referendum authority for a referendum approved before 
        July 1, 1991, excluding authority based on a dollar amount, and 
        the levy authority under section 124.912, subdivisions 2 and 3, 
        by multiplying the sum of the rates authorized by a district 
        under section 126C.17 and the rates in section 124.912, 
        subdivisions 2 and 3, by the ratio determined under subdivision 
        2 for the assessment year for which the revenue is 
        attributable.  The adjusted rates for assessment year 1993 apply 
        to later years for which the revenue is authorized. 
           Sec. 42.  Minnesota Statutes 1999 Supplement, section 
        126C.22, subdivision 4, is amended to read: 
           Subd. 4.  [REVENUE USES.] (a) A district must place its 
        district cooperation revenue in a reserved account and may only 
        use the revenue to purchase goods and services from entities 
        formed for cooperative purposes or to otherwise provide 
        educational services in a cooperative manner. 
           (b) A district that was a member of an intermediate school 
        district organized pursuant to chapter 136D on July 1, 1996, 
        must place its district cooperation revenue in a reserved 
        account and must allocate a portion of the reserved revenue for 
        instructional services from entities formed for cooperative 
        services for special education programs and secondary vocational 
        programs.  The allocated amount is equal to the levy made 
        according to Minnesota Statutes 1993 Supplement, section 
        124.2727, subdivision 6, for taxes payable in 1994 divided by 
        the resident pupil units in the intermediate school district for 
        fiscal year 1995 times the number of resident pupil units in the 
        school district in 1995.  The district must use 5/11 of the 
        revenue for special education and 6/11 of the revenue for 
        secondary vocational education.  The district must demonstrate 
        that the revenue is being used to provide the full range of 
        special education and secondary vocational programs and services 
        available to each child served by the intermediate.  The 
        secondary vocational programs and service must meet the 
        requirements established in an articulation agreement developed 
        between the commissioner of children, families, and learning and 
        the board of trustees of the Minnesota state colleges and 
        universities. 
           (c) A district that was not a member of an intermediate 
        district organized under chapter 136D on July 1, 1994, must 
        spend at least $9 per pupil unit of its district cooperation 
        revenue on secondary vocational programs. 
           Sec. 43.  Minnesota Statutes 1998, section 126C.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
        the amount necessary to make employer contributions for 
        insurance for retired employees under this subdivision.  
           (b) The school board of a joint vocational technical 
        district formed under the provisions formerly codified as 
        sections 136C.60 to 136C.69 and the school board of a school 
        district may provide employer-paid hospital, medical, and dental 
        benefits to a person who: 
           (1) is eligible for employer-paid insurance under 
        collective bargaining agreements or personnel plans in effect on 
        June 30, 1992; 
           (2) has at least 25 years of service credit in the public 
        pension plan of which the person is a member on the day before 
        retirement or, in the case of a teacher, has a total of at least 
        25 years of service credit in the teachers retirement 
        association, a first-class city teacher retirement fund, or any 
        combination of these; 
           (3) upon retirement is immediately eligible for a 
        retirement annuity; 
           (4) is at least 55 and not yet 65 years of age; and 
           (5) retires on or after May 15, 1992, and before July 21, 
        1992. 
           A school board paying insurance under this subdivision may 
        not exclude any eligible employees. 
           (c) An employee who is eligible both for the health 
        insurance benefit under this subdivision and for an early 
        retirement incentive under a collective bargaining agreement or 
        personnel plan established by the employer must select either 
        the early retirement incentive provided under the collective 
        bargaining agreement personnel plan or the incentive provided 
        under this subdivision, but may not receive both.  For purposes 
        of this subdivision, a person retires when the person terminates 
        active employment and applies for retirement benefits.  The 
        retired employee is eligible for single and dependent coverages 
        and employer payments to which the person was entitled 
        immediately before retirement, subject to any changes in 
        coverage and employer and employee payments through collective 
        bargaining or personnel plans, for employees in positions 
        equivalent to the position from which the employee retired.  The 
        retired employee is not eligible for employer-paid life 
        insurance.  Eligibility ceases when the retired employee attains 
        the age of 65, or when the employee chooses not to receive the 
        retirement benefits for which the employee has applied, or when 
        the employee is eligible for employer-paid health insurance from 
        a new employer.  Coverages must be coordinated with relevant 
        health insurance benefits provided through the federally 
        sponsored Medicare program.  
           (d) Unilateral implementation of this section by a public 
        employer is not an unfair labor practice for purposes of chapter 
        179A.  The authority provided in this subdivision for an 
        employer to pay health insurance costs for certain retired 
        employees is not subject to the limits in section 179A.20, 
        subdivision 2a. 
           (e) If a school district levies according to this 
        subdivision, it may not also levy according to section 123A.73, 
        subdivision 12, for eligible employees. 
           Sec. 44.  Minnesota Statutes 1999 Supplement, section 
        126C.44, is amended to read: 
           126C.44 [CRIME-RELATED COSTS LEVY.] 
           Each district may make a levy on all taxable property 
        located within the 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 $1.50 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 directly funding the following purposes or for 
        reimbursing the cities and counties who contract with the 
        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; (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) (e), in the elementary schools; (3) to pay the 
        costs for a gang resistance education training curriculum in the 
        middle schools; or (4) to pay the costs for other crime 
        prevention and drug abuse and violence prevention measures taken 
        by the school district.  The district must initially attempt to 
        contract for services to be provided by peace officers or 
        sheriffs with the police department of each city or the 
        sheriff's department of the county within the 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. 45.  Minnesota Statutes 1998, section 126C.48, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
        each year each district must notify the commissioner of the 
        proposed levies in compliance with the levy limitations of this 
        chapter and chapters 120B, 122A, 123A, 123B, 124B, 124D, 125A, 
        127A, and 136D.  By January 15 of each year each district must 
        notify the commissioner of the final levies certified.  The 
        commissioner shall prescribe the form of these notifications and 
        may request any additional information necessary to compute 
        certified levy amounts. 
           Sec. 46.  Minnesota Statutes 1998, section 126C.48, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ESTIMATES.] The computation of levy limitations 
        pursuant to this chapter and chapters 120B, 122A, 123A, 
        123B, 124B, 124D, 125A, 127A, 136C, and 136D shall be based on 
        estimates where necessary.  If as a result of using estimates 
        for these computations the amount of any levy is different from 
        the amount which could actually have been levied if actual data 
        had been available, levy limitations in the first year when the 
        actual data is known shall be adjusted to reflect for this 
        difference.  The amount of any adjustment to levy limitations 
        pursuant to this subdivision shall be recognized as revenue in 
        the school year when the levy for which the levy limitation is 
        so adjusted is recognized as revenue. 
           Sec. 47.  Minnesota Statutes 1998, section 127A.41, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER DUTIES.] The commissioner 
        shall supervise distribution of school aids and grants in 
        accordance with law.  It The commissioner may make rules 
        consistent with law for the distribution to enable districts to 
        perform efficiently the services required by law and further 
        education in the state, including reasonable requirements for 
        the reports and accounts to it as will assure accurate and 
        lawful apportionment of aids.  State and federal aids and 
        discretionary or entitlement grants distributed by the 
        commissioner shall not be subject to the contract approval 
        procedures of the commissioner of administration or to chapter 
        16A, 16B, or 16C.  The commissioner shall adopt internal 
        procedures for administration and monitoring of aids and grants. 
           Sec. 48.  Minnesota Statutes 1999 Supplement, section 
        127A.45, subdivision 13, is amended to read: 
           Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
        subdivisions 11, 12, 12a, and 14, each fiscal year, all 
        education aids and credits in this chapter and chapters 120A, 
        120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
        and section 273.1392, shall be paid at 90 percent of the 
        estimated entitlement during the fiscal year of the 
        entitlement.  The final adjustment payment, according to 
        subdivision 9, must be the amount of the actual entitlement, 
        after adjustment for actual data, minus the payments made during 
        the fiscal year of the entitlement. 
           Sec. 49.  Laws 1998, chapter 398, article 5, section 50, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
        prekindergarten through grade 12 education governance structure 
        is established to examine the transitional issues related to the 
        repeal of the state board of education under section 39, 
        paragraph (b) 56. 
           Sec. 50.  [REPEALERS WITHOUT EFFECT.] 
           Subdivision 1.  [EFFECT.] (a) The repeal of Minnesota 
        Statutes 1994, section 121.703, by Laws 1995, chapter 131, 
        section 3, subdivision 3, with an effective date of July 1, 
        1997, is without effect and Minnesota Statutes 1996, section 
        121.703, as amended by Laws 1997, First Special Session chapter 
        4, article 3, section 10, remains in effect after June 30, 1997. 
           (b) The repeal of Minnesota Statutes 1996, section 121.11, 
        subdivision 7d, by Laws 1998, chapter 398, article 6, section 
        38, paragraph (b), with an effective date of January 10, 1999, 
        is without effect and Minnesota Statutes 1996, section 121.11, 
        subdivision 7d, as amended by Laws 1998, chapter 397, article 4, 
        section 51, and chapter 398, article 5, section 7, remains in 
        effect after January 9, 1999.  Any rules adopted under section 
        121.11, subdivision 7d, remain in effect until otherwise 
        provided by law or rule. 
           Subd. 2.  [REVISOR INSTRUCTION.] In the next and subsequent 
        editions of Minnesota Statutes, the revisor of statutes shall 
        renumber section 121.703 as 124D.385.  The revisor shall also 
        make necessary cross-reference changes consistent with the 
        renumbering. 
           Subd. 3.  [EFFECTIVE DATE.] Subdivision 1, paragraph (a), 
        is effective retroactive to July 1, 1997.  Subdivision 1, 
        paragraph (b), is effective retroactive to July 1, 1998. 
           Sec. 51.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 124D.128, subdivision 
        4; 124D.38, subdivision 10; and 124D.45, subdivision 3, are 
        repealed. 
           (b) Laws 1997, chapter 192, section 19, is repealed. 
           (c) Laws 1995, First Special Session chapter 3, article 5, 
        section 9, is repealed. 
           Sec. 52.  [EFFECTIVE DATE.] 
           Section 43 is effective retroactive to July 1, 1995.  
        Section 35 is effective retroactive to January 1, 1999. 
           Presented to the governor March 3, 2000 
           Signed by the governor March 7, 2000, 3:40 p.m.