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1985 Minnesota Session Laws

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                         Laws of Minnesota 1985 

                          CHAPTER 12-H.F.No. 3 
           An act relating to education; providing for aids to 
          education, aids to libraries, state payments for 
          teacher retirement contributions, and the distribution 
          of tax revenues; granting certain powers and duties to 
          school boards, school districts, the state board of 
          education, the state board of teaching, and the higher 
          education coordinating board; modifying certain 
          components of foundation aid; modifying the basic 
          maintenance mill rate; modifying computation of pupil 
          units; repealing revenue equity; modifying the 
          computation of transportation aid, special education 
          aid, secondary vocational aid, and other aids; 
          establishing the Minnesota school of the arts and 
          resource center; providing for measurement of pupil 
          progress; establishing mastery learning pilot 
          projects; requiring the state board of teaching to 
          field test plans for assessment of new teachers; 
          appropriating money; amending Minnesota Statutes 1984, 
          sections 5.35; 116J.37, subdivision 1; 120.03, 
          subdivision 1; 120.06, subdivision 1; 120.10, 
          subdivision 1; 120.11; 120.15; 120.17, subdivisions 1, 
          2, 3, 3a, and by adding subdivisions; 121.151; 121.608;
          121.609; 121.88; 121.882; 121.904, subdivision 4a; 
          121.912, subdivision 1; 121.931, subdivision 7; 
          121.936, subdivisions 1 and 2; 122.531, subdivisions 5 
          and 6; 122.541, by adding a subdivision; 122.86, 
          subdivision 1; 123.36, subdivision 1; 123.39, by 
          adding a subdivision; 123.58, by adding a subdivision; 
          123.702, subdivision 1; 123.705, subdivision 1; 
          123.741, subdivisions 6 and 7; 123.742, subdivisions 
          1, 3, 4, 5, and by adding subdivisions; 123.7431; 
          123.935, by adding a subdivision; 124.09; 124.10; 
          124.14, subdivision 4, and by adding a subdivision; 
          124.17, subdivision 1, and by adding a subdivision; 
          124.19, subdivisions 1 and 5; 124.195, subdivisions 7, 
          8, 9, 10, and 11; 124.2138, subdivision 2; 124.223; 
          124.225, subdivisions 1, 3, 4b, 7a, 7b, 8a, 8b, and 10;
          124.245; 124.246, subdivision 2; 124.247, subdivision 
          3; 124.26, subdivision 1; 124.271, subdivision 2b, and 
          by adding a subdivision; 124.2711; 124.272, 
          subdivision 3; 124.273, subdivision 1b; 124.32, 
          subdivisions 1b, 1d, 2, 5, 7, 10, and by adding a 
          subdivision; 124.573, subdivisions 2 and 3a; 124.574, 
          subdivision 2b; 124.646, subdivision 1; 124.76, 
          subdivision 2; 124A.01; 124A.02, subdivisions 7, 8, 9, 
          16, and by adding a subdivision; 124A.03, subdivisions 
          3, 4, and by adding a subdivision; 124A.033, 
          subdivisions 2, 3, and 5; 124A.037; 124A.06, 
          subdivisions 1, 3a, and by adding subdivisions; 
          124A.08, subdivision 3a; 124A.10, subdivision 3a; 
          124A.12, subdivision 3a; 124A.14, subdivisions 3 and 
          5a; 124A.16, subdivision 4; 125.03, by adding a 
          subdivision; 125.05, subdivision 1, and by adding a 
          subdivision; 125.12, by adding a subdivision; 125.182, 
          subdivision 1; 125.185, subdivision 4; 125.60, 
          subdivisions 3 and 7; 126.64, subdivision 2; 129B.02, 
          by adding a subdivision; 129B.04, by adding a 
          subdivision; 129B.17; 129B.20; 129B.21; 129B.35; 
          129B.36, subdivisions 1, 4, and 5; 129B.37, 
          subdivision 1; 129B.38; 129B.39; 129B.40; 134.35; 
          134.351, subdivision 1; 275.125, subdivisions 5, 5b, 
          5d, 8, 8a, 8b, 11a, 11b, 11c, and by adding a 
          subdivision; 298.28, subdivision 1; 354.092; 354.094, 
          subdivision 1; 354.43, subdivision 3; 354.51, 
          subdivision 5; 354.53, subdivision 1; 354.66, 
          subdivisions 3 and 4; 354A.092; 354A.093; 354A.094, 
          subdivisions 2 and 4; 354A.12, subdivision 2; 355.208; 
          355.209; 355.287; 355.288; and 355.46, subdivision 3; 
          amending Laws 1973, chapter 683, section 26, as 
          amended, and section 26, subdivision 17, as amended; 
          Laws 1983, chapter 314, article 8, section 11; and 
          Laws 1985, chapter 280, section 4; proposing coding 
          for new law in Minnesota Statutes, chapters 120; 121; 
          123; 124; 124A; 126; 129B; 129C; 136A; and 471; 
          repealing Minnesota Statutes 1984, sections 120.03, 
          subdivisions 2, 3, and 4; 120.17, subdivision 1a; 
          120.172, subdivision 3; 120.68; 121.11, subdivision 7a;
          121.601; 122.531, subdivision 3a; 122.84; 122.85; 
          122.89; 123.705, subdivision 2; 123.742, subdivision 2;
          123.80, subdivisions 2 and 3; 124.201, subdivisions 3, 
          4, and 5; 124.2138, subdivision 2; 124.225, 
          subdivisions 4a, 8c, 8d, 8e, 8f, 8g, and 8h; 124.247, 
          subdivision 6; 124.271, subdivisions 2, 2a, and 2c; 
          124.32, subdivision 9a; 124A.02, subdivisions 4a, 17, 
          and 18; 124A.03, subdivision 5; 124A.035, subdivision 
          6; 124A.037; 125.05, subdivision 5; 125.611, 
          subdivisions 3, 4, 5, 6, and 7; 126.64, subdivision 1; 
          129B.03; 129B.10; 129B.18; 129B.19; 129B.33, 
          subdivisions 2, 3, 4, and 6; 129B.34; 129B.36, 
          subdivisions 2 and 3; 275.125, subdivision 2j; 354.43, 
          subdivisions 1, 4, and 5; 354A.12, subdivision 3; 
          355.46, subdivisions 1, 2, and 5; and 355.47; 
          repealing Laws 1984, chapter 463, article 9, section 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                             FOUNDATION AID 
    Section 1.  Minnesota Statutes 1984, section 122.531, 
subdivision 5, is amended to read: 
    Subd. 5.  [REPLACEMENT FIFTH TIER LEVY AND AID.] For 
purposes of computing the replacement fifth tier levy limitation 
under section 275.125 124A.14, subdivision 6c 5a, 
and replacement fifth tier aid under section 124.2124 124A.14, 
subdivision 6, the replacement entitlement fifth tier allowance 
of a district newly created through consolidation or enlarged 
through the dissolution of a district and its attachment to one 
or more other districts, shall equal the quotient obtained by 
dividing: 
    (1) the sum of the amounts derived by performing the 
following multiplication for each component district: 
    (a) the replacement entitlement fifth tier allowance of the 
component district, times 
    (b) the number of actual and AFDC pupil units from that 
component district who are enrolled in the newly created or 
enlarged district in the year when the consolidation or 
dissolution and attachment becomes effective; by 
    (2) the total number of actual and AFDC pupil units in the 
newly created or enlarged district in the year when the 
consolidation or dissolution and attachment becomes effective. 
    Sec. 2.  Minnesota Statutes 1984, section 122.531, 
subdivision 6, is amended to read: 
    Subd. 6.  [AID DEDUCTIONS.] (1) For purposes of determining 
deductions from basic foundation, grandfather, replacement, and 
discretionary aid pursuant to section 124A.035, subdivision 1, 
of a district newly created through consolidation or enlarged 
through the dissolution of a district and its attachment to one 
or more other districts, in the year when the consolidation or 
dissolution and attachment becomes effective, there shall be 
used in lieu of the ratio of the district's actual levy to its 
permitted levy in the applicable year, the quotient obtained by 
dividing: 
    (a) the sum of the products derived for each component 
district by multiplying the component district's actual levy in 
the applicable year pursuant to the applicable subdivision, 
times the ratio of the amount of the adjusted assessed valuation 
of the property from the component district which is included in 
the new district to the total amount of the adjusted assessed 
valuation of the new district; by 
    (b) the sum of the products derived for each component 
district by multiplying the component district's permitted levy 
in the applicable year pursuant to the applicable subdivision, 
times the ratio of the amount of the adjusted assessed valuation 
of the property from the component district which is included in 
the new district to the total amount of the adjusted assessed 
valuation of the new district. 
    Sec. 3.  Minnesota Statutes 1984, section 124.09, is 
amended to read: 
    124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.] 
    The school endowment fund shall be apportioned semiannually 
by the state board, on the first Monday in March and October 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 between the ages of five and twenty-one 
years who shall have been 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. 4.  Minnesota Statutes 1984, section 124.10, is 
amended to read: 
    124.10 [AUDITOR'S DUTIES.] 
    Subdivision 1.  A copy of the apportionment of the school 
endowment fund shall be furnished by the state board to the 
commissioner of finance, who thereupon shall draw his warrants 
on the state treasury, payable to the several districts, for the 
amount due each district.  There is hereby annually appropriated 
from the school endowment fund the amount of such apportionments.
    Subd. 2.  The county auditor shall at the time of making 
the March and November tax settlements of each year apportion to 
the several districts the amount received from liquor licenses, 
fines, estrays, and other sources belonging to the general 
school fund, upon the same basis provided for the state 
apportionment; but.  The apportionment shall be made in 
proportion to each district's assessed value within the county 
in the prior year.  No district shall receive any part of the 
money received from liquor licenses unless all sums paid for 
such licenses in such district are apportioned to the county 
school fund.  
    Subd. 3.  The county auditor, on the first Wednesday after 
such apportionment, shall report to the commissioner on the 
amount apportioned, the sources from which such money was 
received, and the total average daily membership of pupils in 
the county entitled to apportionment assessed valuation of each 
district in the county. 
    Sec. 5.  Minnesota Statutes 1984, section 124.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  Pupil units for each resident pupil in 
average daily membership shall be counted as follows: 
    (1) In a program approved by the commissioner, for each 
handicapped prekindergarten pupil, one-half pupil unit for up to 
437 hours of education services in the school year as provided 
in the pupil's individual education plan or, for more than 437 
hours of education services, a number of pupil units equal to 
the ratio of the number of hours of education service required 
in the school year by the pupil's individual education program 
plan, developed pursuant to the rules of the state board, to 
875, but not more than one pupil unit; 
    (2) In an elementary school: 
    (a) For each handicapped pre-kindergarten pupil and each 
handicapped kindergarten pupil, as defined in section 120.03, 
enrolled in a program approved by the commissioner, a number of 
pupil units equal to the ratio of the number of hours of 
education services required in the school year by the pupil's 
individual education program plan, developed pursuant to the 
rules of the state board, to 875, but not more than one pupil 
unit; 
    (b) For kindergarten pupils, other than those in clause 
(a), enrolled in one-half day sessions throughout the school 
year or the equivalent thereof, one-half pupil unit; and 
    (c) For other elementary pupils, one pupil unit. 
    (2) (3) In secondary schools, one and four-tenths pupil 
units.  Pupils enrolled in the seventh and eighth grades of any 
school shall be counted as secondary pupils. 
    Sec. 6.  Minnesota Statutes 1984, section 124.17, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [AFDC PUPIL UNITS.] In addition to the pupil 
units counted under subdivision 1, pupil units shall be counted 
as provided in this subdivision, beginning with the 1986-1987 
school year.  
    (1) Each pupil in subdivision 1 from a family receiving aid 
to families with dependent children or its successor program who 
is enrolled in the school district on October 1 shall be counted 
as an additional five-tenths pupil unit. 
    (2) In every district in which the number of pupils from 
families receiving aid to families with dependent children or 
its successor program equals six percent or more of the actual 
pupil units in the district for the same year as computed in 
subdivision 1, each such pupil shall be counted as an additional 
one-tenth of a pupil unit for each percent of concentration over 
five percent of such pupils in the district.  The percent of 
concentration shall be rounded down to the nearest whole percent 
for this paragraph.  In districts in which the percent of 
concentration is less than six, additional pupil units must not 
be counted under this paragraph for pupils from families 
receiving aid to families with dependent children or its 
successor program.  A pupil must not be counted as more than one 
and one-tenth additional pupil units under this subdivision. The 
weighting in this paragraph is in addition to the weighting 
provided in subdivision 1 and paragraph (1). 
    Sec. 7.  Minnesota Statutes 1984, section 124.2138, 
subdivision 2, is amended to read: 
    Subd. 2.  [TRANSPORTATION LEVY EQUITY.] (1) If the 
transportation levy for fiscal year 1985 in any district, or for 
fiscal year 1986 and thereafter in a nonagricultural district, 
of 1.75 mills times the adjusted assessed valuation of the 
district exceeds the transportation aid computation under 
section 124.225, subdivisions 8b, 8i, 8j, and 8k, an amount 
shall be deducted as provided in this subdivision from special 
state aids of chapter 124 receivable for the same fiscal year, 
and from state payments on behalf of the district for the same 
fiscal year authorized in sections 354.43, subdivision 1; 
354A.12, subdivision 2; and 355.46, subdivision 3, clause (b), 
to the extent that those special state aids and state payments 
have not been reduced pursuant to section 124A.037. However, aid 
authorized in sections 124.2137 and 124.646 shall not be reduced.
    (2) The amount of the deduction shall equal the difference 
between:  
    (a) 1.75 mills times the adjusted assessed valuation of the 
district for the levy attributable to that fiscal year, and 
    (b) the sum of the district's transportation aid 
computation pursuant to section 124.225, subdivisions 8b, 8i, 
8j, and 8k, less the amount of any aid reduction due to an 
insufficient appropriation as provided in section 124.225, 
subdivision 8a.  
    However, for fiscal year 1985, the amount of the deduction 
shall be one-sixth of the difference between clauses (a) and 
(b); and for fiscal year 1986, the amount of the deduction shall 
be one-third of the difference between clauses (a) and (b); for 
fiscal year 1987, the amount of the deduction shall be one-half 
of the difference between clauses (a) and (b); for fiscal year 
1988, the amount of the deduction shall be two-thirds of the 
difference between clauses (a) and (b); and for fiscal year 
1989, the amount of the deduction shall be five-sixths of the 
difference between clauses (a) and (b).  
     Sec. 8.  Minnesota Statutes 1984, section 124A.01, is 
amended to read: 
    124A.01 [FOUNDATION AID COMPONENTS.] 
    Foundation aid shall equal the sum of the following: 
    (a) basic aid; 
    (b) cost differential tier aid;  
    (c) second tier aid; 
    (d) third tier aid; 
    (e) fourth tier aid; 
    (f) fifth tier aid; 
    (g) minimum aid; and 
    (h) declining pupil unit aid; and 
     (i) shared time pupil aid.  
    Sec. 9.  Minnesota Statutes 1984, section 124A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [BASIC MAINTENANCE MILL RATE.] "Basic maintenance 
mill rate" means the mill rate applicable to the adjusted 
assessed valuation of a district, used in the computation of 
basic foundation aid for a particular school year and of the 
basic maintenance levy for use in that school year.  The basic 
maintenance mill rate shall be .024 for the 1982 payable 1983 
levies and for foundation aid for the 1983-1984 school year.  
The basic maintenance mill rate shall be .024 for the 1983 
payable 1984 levies and for foundation aid for the 1984-1985 
school year.  The basic maintenance mill rate shall be .0235 for 
the 1984 payable 1985 levies and for foundation aid for the 
1985-1986 school year.  The basic maintenance mill rate for 1985 
payable 1986 levies and each year thereafter, and for foundation 
aid for the 1986-1987 school year and each year thereafter, 
shall be established as provided in section 14. 
    Sec. 10.  Minnesota Statutes 1984, section 124A.02, 
subdivision 8, is amended to read: 
    Subd. 8.  [EQUALIZING FACTOR.] "Equalizing factor" means a 
number equal to the minimum EARC valuation per actual and AFDC 
total pupil unit which disqualifies a district from earning any 
basic foundation aid.  The equalizing factor for each school 
year and for levies for use in that school year equals the 
ratio, rounded to the nearest dollar, of the foundation aid 
formula allowance for that school year to the basic maintenance 
mill rate for that school year.  However, the equalizing factor 
for discretionary and replacement aids for the 1982-1983 school 
year shall be $61,565. 
    Sec. 11.  Minnesota Statutes 1984, section 124A.02, 
subdivision 9, is amended to read:  
    Subd. 9.  [FORMULA ALLOWANCE.] "Foundation aid formula 
allowance" or "formula allowance" means the amount of revenue 
per pupil unit used in the computation of foundation aid for a 
particular school year and in the computation of permissible 
levies for use in that school year.  The formula allowance shall 
be $1,475 for the 1982 payable 1983 levies and for foundation 
aid for the 1983-1984 school year.  The formula allowance shall 
be $1,475 for the 1983 payable 1984 levies and for foundation 
aid for the 1984-1985 school year.  The formula allowance shall 
be $1,585 for the 1984 payable 1985 levies and for foundation 
aid for the 1985-1986 school year.  The formula allowance shall 
be $1,690 for the 1985 payable 1986 levies and for foundation 
aid for the 1986-1987 school year. 
    Sec. 12.  Minnesota Statutes 1984, section 124A.02, 
subdivision 16, is amended to read: 
    Subd. 16.  [PUPIL UNITS, AFDC.] For the 1984-1985 and 
1985-1986 school years, "AFDC pupil units" means 98.5 percent of 
the pupil units identified in Minnesota Statutes 1980, section 
124.17, subdivision 1, clauses (4) and (5) in the 1980-1981 
school year.  
    For the 1986-1987 school year and each year thereafter, 
"AFDC pupil units" means pupil units identified in section 
124.17, subdivision 1a.  
     Sec. 13.  Minnesota Statutes 1984, section 124A.02, is 
amended by adding a subdivision to read:  
     Subd. 24.  [AVERAGE SALARY FOR BEGINNING 
TEACHERS.] "Average salary for beginning teachers" means the 
average salary for all teachers in the state who are in their 
first year of teaching and who have no additional credits or 
degrees above a bachelor's degree.  At least biennially, the 
department shall recompute this average using complete new data. 
    Sec. 14.  Minnesota Statutes 1984, section 124A.03, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ESTABLISHMENT OF BASIC MAINTENANCE MILL 
RATE.] (a) The commissioner of revenue shall establish the basic 
maintenance mill rate and certify it to the commissioner of 
education by August 1 of each year for levies payable in the 
following year.  The established basic maintenance mill rate 
shall be a rate, rounded up to the nearest tenth of a mill, 
which when applied to the adjusted assessed valuation of taxable 
property for each school district under section 124A.03, 
subdivision 1 or 3, as applicable, raises the total amount 
specified in this section.  
    (b) The basic maintenance mill rate for the 1985 payable 
1986 levies and for foundation aid for the 1986-1987 school year 
shall be established at a rate that raises a total of 
$702,000,000.  The basic maintenance mill rate computed by the 
commissioner of revenue must not be recomputed due to changes or 
corrections made in a school district's adjusted assessed 
valuation after the mill rate has been certified to the 
department of education pursuant to paragraph (a). 
    Sec. 15.  Minnesota Statutes 1984, section 124A.03, 
subdivision 3, is amended to read: 
    Subd. 3.  [BASIC MAINTENANCE LEVY; DISTRICTS OFF THE 
FORMULA.] In any year when the amount of the maximum levy 
limitation under subdivision 1 for any district, exceeds the 
product of the district's foundation aid formula allowance for 
the year in which the levy is recognized as revenue times the 
estimated number of total pupil units for that district for that 
school year, the levy limitation for that district under 
subdivision 1 shall be limited to the greater of the dollar 
amount of the levy the district certified in 1977 under 
Minnesota Statutes 1978, section 275.125, subdivision 2a, clause 
(1), or the following difference but not to exceed the levy 
limitation under subdivision 1: 
    (a) the sum of (i) the product of the district's foundation 
aid formula allowance for the school year in which the levy is 
recognized as revenue, times the estimated number of total pupil 
units for that district for that school year, plus (ii) the 
amount by which special state aids of chapter 124 receivable for 
the same school year, excluding aid authorized in sections 
124.2137 and 124.646, are estimated to be reduced pursuant to 
section 124.2138, subdivision 1, plus 
    (iii) the amount by which state payments on behalf of the 
district for the same school year authorized in sections 354.43, 
subdivision 1; 354A.12, subdivision 2; and 355.46, subdivision 
3, clause (b), are estimated to be reduced pursuant to section 
124.2138, subdivision 1, less 
    (b) the estimated amount of any payments which would reduce 
the district's foundation aid entitlement as provided in section 
124A.035, subdivision 4 in the school year in which the levy is 
recognized as revenue. 
    A levy made by a district pursuant to this subdivision 
shall be construed to be the levy made by that district pursuant 
to subdivision 1, for purposes of statutory cross-reference. 
    Sec. 16.  Minnesota Statutes 1984, section 124A.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [SUMMER PROGRAM LEVY.] In 1984 and each year 
thereafter, A district may levy for summer programs an amount 
equal to the following product:  
    (a) The district's estimated total summer program revenue 
allowance as defined in section 124A.033, subdivision 2, for the 
summer program session to be held in the calendar year after the 
calendar year when the levy is certified, times 
    (b) the lesser of 
    (1) one, or 
    (2) the ratio of 
    (i) the quotient derived by dividing the adjusted assessed 
valuation of the district in the second preceding year by the 
total pupil units in the district in the current regular school 
year, to 
    (ii) the equalizing factor for the current regular school 
year.  
    Sec. 17.  Minnesota Statutes 1984, section 124A.033, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] For the purposes of computing 
foundation aid for summer programs and inter-session classes of 
flexible school year programs, the following phrases shall have 
the meanings given them.  
    (1) "Summer program pupil units" means full-time equivalent 
pupil units, computed under section 124.17, for summer programs 
and inter-session classes of flexible school year 
programs computed under the provisions of section 124.17.  
    (2) "Summer program instructional revenue allowance" means 
an amount equal to the product of the number of summer program 
pupil units in a district, times the foundation aid formula 
allowance as defined in section 124A.02 for the preceding 
regular school year.  
    (3) "Summer educational improvement revenue allowance" 
means an amount equal to the product of 0.005, times the number 
of actual pupil units in the district in the preceding regular 
school year, times the foundation aid formula allowance as 
defined in section 124A.02 for the preceding regular school year.
    (4) "Total summer program revenue allowance" means an 
amount equal to the sum of a district's summer program 
instructional revenue allowance and summer educational 
improvement revenue allowance.  
    (5) "Summer program aid" means aid for summer programs and 
inter-session classes of flexible school year programs. 
    Sec. 18.  Minnesota Statutes 1984, section 124A.033, 
subdivision 3, is amended to read: 
    Subd. 3.  [SUMMER PROGRAM AID.] In fiscal year 1986 and 
Each year thereafter, a district offers a summer instructional 
program, it shall receive summer program aid equal to the 
difference between:  
    (1) the product of 
    (a) the ratio of the district's actual levy to its 
permitted levy, pursuant to section 124A.03, subdivision 3 4, 
certified in the calendar year before the summer program is 
offered; times 
    (b) the district's total summer program revenue allowance; 
and 
    (2) the levy certified by the district pursuant to section 
124A.03, subdivision 3 4, in the calendar year before the summer 
program is offered.  
    Sec. 19.  Minnesota Statutes 1984, section 124A.033, 
subdivision 5, is amended to read: 
    Subd. 5.  [AUTHORIZED USE OF SUMMER PROGRAM AID AND LEVY.] 
(a) Beginning with the 1985 summer program, A school board may 
use the proceeds of the aid and levy received pursuant to this 
section and section 124A.03, subdivision 3 4, only for 
summer instructional programs that are offered for credit or 
required for graduation or that provide academic enrichment or 
remediation.  The proceeds may not be used for recreational 
sports, leisure activities, entertainment, recreational 
activities, crafts, hobbies, or any other classes of a similar 
nature.  Summer programs for a handicapped pupil shall relate to 
the pupil's individual education plan.  
    (b) The proceeds may also be used for expenditures during 
the summer for curriculum development, staff development, parent 
or community involvement, experimental educational delivery 
systems, and other measures designed to improve education in the 
district.  
    Sec. 20.  Minnesota Statutes 1984, section 124A.037, is 
amended to read: 
    124A.037 [BASIC MAINTENANCE LEVY EQUITY.] 
    (1) If the amount of the maximum levy limitation under 
section 124A.03, subdivision 1, for fiscal year 1985 for any 
district, or for fiscal year 1986 or after for a nonagricultural 
district exceeds the district's basic foundation revenue for the 
corresponding fiscal year, an amount shall be deducted as 
provided in this subdivision from special state aids of chapter 
124 receivable for the same fiscal year, and from state payments 
on behalf of the district for the same fiscal year authorized in 
sections 354.43, subdivision 1; 354A.12, subdivision 2; and 
355.46, subdivision 3, clause (b).  However, the aid authorized 
in sections 124.2137 and 124.646 shall not be reduced.  
    (2) The amount of the deduction shall equal the difference 
between:  
    (a) the sum of the amount of the district's maximum levy 
limitation under section 124A.03, subdivision 1, plus the amount 
of any reductions to that levy limitation pursuant to sections 
124A.03, subdivision 3, and 275.125, subdivision 9, and 
    (b) the district's basic foundation revenue.  
    However, for fiscal year 1985, the amount of the deduction 
shall be one-sixth of the difference between clauses (a) and 
(b); and for fiscal year 1986, the amount of the deduction shall 
be one-third of the difference between clauses (a) and (b); for 
fiscal year 1987, the amount of the deduction shall be one-half 
of the difference between clauses (a) and (b); for fiscal year 
1988, the amount shall be two-thirds of the difference between 
clauses (a) and (b); and for fiscal year 1989, the amount of the 
deduction shall be five-sixths of the difference between clauses 
(a) and (b).  
    Sec. 21.  Minnesota Statutes 1984, section 124A.06, 
subdivision 1, is amended to read:  
    Subdivision 1.  [COST DIFFERENTIAL TIER ALLOWANCE.] "Cost 
differential tier allowance" means the amount of revenue per 
actual pupil unit used to compute the cost differential tier aid 
for a school year and levy for use in the same school year.  A 
district's cost differential tier allowance shall be the result 
of the following computation: 
    (a) Divide the amount of aid the district would have 
received for the 1980-1981 school year if Minnesota Statutes, 
1979 Supplement, section 124.224, as amended by section 
124.2124, subdivision 1, had been effective for the 1980-1981 
school year by the actual pupil units in the district in the 
1980-1981 school year. 
    (b) For the 1984-1985 school year, multiply the result in 
clause (a) by one.  For the 1985-1986 school year and school 
years thereafter, multiply the result in clause (a) by two.  
    (c) Divide the formula allowance for the school year by 
$1265.  
    (d) Multiply the result in clause (b) by the result in 
clause (c).  
    (e) Subtract 1.25 from the training and experience index, 
and multiply the difference by $300 for the 1984-1985 school 
year, or $400 for the 1985-1986 school year and thereafter.  
    (f) Select the greater of the result in clause (e) or zero. 
    (g) Add the results of clauses (d) and (f) sum of the 
sparsity allowance and the training and experience allowance.  
    Sec. 22.  Minnesota Statutes 1984, section 124A.06, is 
amended by adding a subdivision to read:  
    Subd. 1a.  [SPARSITY ALLOWANCE.] A district's sparsity 
allowance shall be the result of the following computation:  
    (a) Multiply two times the district's sparsity replacement 
component for the 1980-1981 school year, assuming that Minnesota 
Statutes 1982, section 124.2124, subdivision 1, had been 
effective for the 1980-1981 school year.  
    (b) Divide the result in clause (a) by the actual pupil 
units in the district for the 1980-1981 school year.  
    (c) Divide the formula allowance for the school year by 
$1,265. 
    (d) Multiply the result in clause (b) by the result in 
clause (c).  
    Sec. 23.  Minnesota Statutes 1984, section 124A.06, is 
amended by adding a subdivision to read:  
    Subd. 1b.  [TRAINING AND EXPERIENCE ALLOWANCE.] A 
district's training and experience allowance shall be the 
greater of zero or the result of the following computation:  
    (a) Subtract 1.25 from the training and experience index. 
    (b) Multiply the result in clause (a) by $300 for the 
1984-1985 school year, and by $400 for the 1985-1986 school 
year, and each school year thereafter.  
    Sec. 24.  Minnesota Statutes 1984, section 124A.06, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [COST DIFFERENTIAL TIER LEVY.] In 1983 and each 
year thereafter, A district may levy for its cost differential 
tier revenue an amount not to exceed the lesser of its cost 
differential tier revenue or the result of the following 
computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by the equalizing 
factor for the school year to which the levy is attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
cost differential tier revenue for the school year to which the 
levy is attributable.  
    Sec. 25.  Minnesota Statutes 1984, section 124A.08, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [SECOND TIER LEVY.] In 1983 and each year 
thereafter, A district may levy for its second tier revenue an 
amount not to exceed the lesser of its second tier revenue or 
the result of the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by the equalizing 
factor for the school year to which the levy is attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
second tier revenue for the school year to which the levy is 
attributable.  
    Sec. 26.  Minnesota Statutes 1984, section 124A.10, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [THIRD TIER LEVY.] In 1983 and each year 
thereafter, A district may levy for its third tier revenue an 
amount not to exceed the lesser of its third tier revenue or the 
result of the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 75 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
third tier revenue for the school year to which the levy is 
attributable.  
    Sec. 27.  Minnesota Statutes 1984, section 124A.12, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [FOURTH TIER LEVY.] In 1983 and each year 
thereafter, A district may levy for its fourth tier revenue an 
amount not to exceed the lesser of its fourth tier revenue or 
the result of the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 50 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the fourth tier 
revenue for the school year to which the levy is attributable.  
    Sec. 28.  Minnesota Statutes 1984, section 124A.14, 
subdivision 3, is amended to read:  
    Subd. 3.  [MINIMUM INCREASE.] For the 1984-1985 and 
1985-1986 school years, "minimum increase" shall mean the amount 
equal to $25 times the 1984-1985 total pupil units, divided by 
the 1984-1985 actual pupil units.  For the 1986-1987 school year 
and each school year thereafter, "minimum increase" shall mean 
the amount equal to $50 times the 1984-1985 total pupil units 
divided by the 1984-1985 actual pupil units. 
    Sec. 29.  Minnesota Statutes 1984, section 124A.14, 
subdivision 5a, is amended to read:  
    Subd. 5a.  [FIFTH TIER LEVY.] In 1983 and each year 
thereafter, A district may levy for its fifth tier revenue an 
amount not to exceed the lesser of its fifth tier revenue or the 
result of the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 50 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the fifth tier 
revenue for the school year to which the levy is attributable.  
    Sec. 30.  Minnesota Statutes 1984, section 124A.16, 
subdivision 4, is amended to read: 
    Subd. 4.  [PUPIL UNIT REVENUE BEFORE REDUCTION.] The 
permitted total revenue per actual pupil unit specified in 
subdivision 2 shall be determined prior to the reduction 
according to section 124A.03, subdivision 3 124A.08, subdivision 
5.  
    Sec. 31.  [124A.20] [DECLINING PUPIL UNIT AID AND LEVY.] 
    Subdivision 1.  [DECLINING PUPIL UNIT REVENUE.] "Declining 
pupil unit revenue" means the amount of revenue used to compute 
the declining pupil unit aid for a school year and levy for use 
in the same school year.  A district's declining pupil unit 
revenue shall be the result of the following computation:  
    (a) Subtract the number of total pupil units in the 
district for the current year from the number of total pupil 
units in the district in the preceding year.  If the result is 
less than zero, select zero.  
    (b) Divide the result in clause (a) by 30.  
    (c) Multiply the statewide average salary for beginning 
teachers, by the training and experience index of the district.  
    (d) Muliply the result in clause (b) by the result in 
clause (c).  
    Subd. 2.  [DECLINING PUPIL UNIT LEVY.] A district may levy 
for its declining pupil unit revenue an amount not to exceed the 
lesser of its declining pupil unit revenue or the result of the 
following computation:  
    (a) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
     (b) Divide the result in clause (a) by 75 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
     (c) Multiply the result in clause (b) by the district's 
declining pupil unit revenue for the school year to which the 
levy is attributable.  
     Subd. 3.  [DECLINING PUPIL UNIT AID.] A district's 
declining pupil unit aid shall be the result of the following 
computation:  
     (a) Subtract the amount of the declining pupil unit levy 
from the amount of the declining pupil revenue.  
     (b) Divide the actual declining pupil unit levy by the 
permitted declining pupil unit levy.  
     (c) Multiply the result in clause (a) by the result in 
clause (b). 
    Sec. 32.  Minnesota Statutes 1984, section 126.64, 
subdivision 2, is amended to read: 
    Subd. 2.  [DISTRICT OF ATTENDANCE.] The district receiving 
a pupil selected to participate in the program of excellence 
program shall count the pupil as a resident pupil unit as 
defined in section 124.17 for purpose of determining aids and 
levies.  The district of residence shall not count such a pupil 
as a resident pupil unit while the pupil attends school in 
another district. 
    Sec. 33.  Minnesota Statutes 1984, section 298.28, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DISTRIBUTION FROM GENERAL FUND.] The 
proceeds of the taxes collected under section 298.24, except the 
tax collected under section 298.24, subdivision 2, shall, upon 
certificate of the commissioner of revenue to the general fund 
of the state, be paid by the commissioner of revenue as follows: 
    (1) 2.5 cents per gross ton of merchantable iron ore 
concentrate, hereinafter referred to as "taxable ton," to the 
city or town in which the lands from which taconite was mined or 
quarried were located or within which the concentrate was 
produced.  If the mining, quarrying, and concentration, or 
different steps in either thereof are carried on in more than 
one taxing district, the commissioner shall apportion equitably 
the proceeds of the part of the tax going to cities and towns 
among such subdivisions upon the basis of attributing 40 percent 
of the proceeds of the tax to the operation of mining or 
quarrying the taconite, and the remainder to the concentrating 
plant and to the processes of concentration, and with respect to 
each thereof giving due consideration to the relative extent of 
such operations performed in each such taxing district.  His 
order making such apportionment shall be subject to review by 
the tax court at the instance of any of the interested taxing 
districts, in the same manner as other orders of the 
commissioner. 
      (2) 12.5 cents per taxable ton, less any amount distributed 
under clause (8), to the taconite municipal aid account in the 
apportionment fund of the state treasury, to be distributed as 
provided in section 298.282. 
      (3) 29 cents per taxable ton plus the increase provided in 
paragraph (c) to qualifying school districts to be distributed 
as follows: 
      (a) Six cents per taxable ton to the school districts in 
which the lands from which taconite was mined or quarried were 
located or within which the concentrate was produced.  The 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
      (b) 23 cents per taxable ton, less any amount distributed 
under part (d), shall be distributed to a group of school 
districts comprised of those school districts wherein the 
taconite was mined or quarried or the concentrate produced or in 
which there is a qualifying municipality as defined by section 
273.134 in direct proportion to school district tax levies as 
follows:  each district shall receive that portion of the total 
distribution which its certified levy for the prior year, 
computed pursuant to sections 124A.03, 124A.06, subdivision 3a, 
124A.08, subdivision 3a, 124A.10, subdivision 3a, 124A.12, 
subdivision 3a, 124A.14, subdivision 5a, and 275.125, comprises 
of the sum of certified levies for the prior year for all 
qualifying districts, computed pursuant to sections 124A.03, 
124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
5a, and 275.125.  For purposes of distributions pursuant to this 
part, certified levies for the prior year computed pursuant to 
sections 124A.03, 124A.06, subdivision 3a, 124A.08, subdivision 
3a, 124A.10, subdivision 3a, 124A.12, subdivision 3a, 124A.14, 
subdivision 5a, and 275.125 shall not include the amount of any 
increased levy authorized by referendum pursuant to section 
124A.03, subdivision 2. 
    (c) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
clause (3)(b) in the same proportion as the increase in the 
steel mill products index over the base year of 1977 as provided 
in section 298.24, subdivision 1, clause (a), shall be 
distributed to any school district described in clause (3)(b) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988 and subsequent years, the increase 
over the amount established for the prior year shall be 
determined according to the increase in the implicit price 
deflator as provided in section 298.24, subdivision 1, paragraph 
(a).  Each district shall receive the product of: 
    (i) $150 times the pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), enrolled in the 
second previous year or the 1983-1984 school year, whichever is 
greater, less the product of two 1 3/4 mills times the 
district's taxable valuation in the second previous year; times 
    (ii) the lesser of: 
    (A) one, or 
    (B) the ratio of the amount certified pursuant to section 
124A.03, subdivision 2, in the previous year, to the product of 
two 1 3/4 mills times the district's taxable valuation in the 
second previous year. 
    If the total amount provided by clause (3)(c) is 
insufficient to make the payments herein required then the 
entitlement of $150 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to clause 
(3)(c) shall not be applied to reduce foundation aids which the 
district is entitled to receive pursuant to section 124A.02 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of finance who shall deposit the same in the 
taconite environmental protection fund and the northeast 
Minnesota economic protection trust fund as provided in section 
298.28, subdivision 1, clause 10. 
    (d) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    (4) 19.5 cents per taxable ton to counties to be 
distributed as follows: 
    (a) 15.5 cents per taxable ton shall be distributed to the 
county in which the taconite is mined or quarried or in which 
the concentrate is produced, less any amount which is to be 
distributed pursuant to part (b).  The commissioner shall follow 
the apportionment formula prescribed in clause (1). 
      (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, one 
cent per taxable ton of the tax distributed to the counties 
pursuant to part (a) and imposed on and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county in which the power plant is located. 
      (c) Four cents per taxable ton shall be paid to the county 
from which the taconite was mined, quarried or concentrated to 
be deposited in the county road and bridge fund.  If the mining, 
quarrying and concentrating, or separate steps in any of those 
processes are carried on in more than one county, the 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (5) (a) 17.75 cents per taxable ton, less any amount 
required to be distributed under part (b), to the taconite 
property tax relief account in the apportionment fund in the 
state treasury, to be distributed as provided in sections 
273.134 to 273.136. 
      (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, .75 
cent per taxable ton of the tax imposed and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county and school district in which the power plant is 
located as follows:  25 percent to the county and 75 percent to 
the school district. 
     (6) One cent per taxable ton to the state for the cost of 
administering the tax imposed by section 298.24. 
     (7) Three cents per taxable ton shall be deposited in the 
state treasury to the credit of the iron range resources and 
rehabilitation board account in the special revenue fund for the 
purposes of section 298.22.  The amount determined in this 
clause shall be increased in 1981 and subsequent years prior to 
1988 in the same proportion as the increase in the steel mill 
products index as provided in section 298.24, subdivision 1 and 
shall be increased in 1988 and subsequent years according to the 
increase in the implicit price deflator as provided in section 
298.24, subdivision 1.  The amount distributed pursuant to this 
clause shall be expended within or for the benefit of a tax 
relief area defined in section 273.134.  No part of the fund 
provided in this clause may be used to provide loans for the 
operation of private business unless the loan is approved by the 
governor and the legislative advisory commission. 
     (8) (a) .20 cent per taxable ton shall be paid to the range 
association of municipalities and schools, for the purpose of 
providing an area wide approach to problems which demand 
coordinated and cooperative actions and which are common to 
those areas of northeast Minnesota affected by operations 
involved in mining iron ore and taconite and producing 
concentrate therefrom, and for the purpose of promoting the 
general welfare and economic development of the cities, towns 
and school districts within the iron range area of northeast 
Minnesota. 
     (b) 1.5 cents per taxable ton shall be paid to the 
northeast Minnesota economic protection trust fund.  
     (9) the amounts determined under clauses (4)(a), (4)(c), 
(5), and (8)(b) shall be increased in 1979 and subsequent years 
prior to 1988 in the same proportion as the increase in the 
steel mill products index as provided in section 298.24, 
subdivision 1.  Those amounts shall be increased in 1988 and 
subsequent years in the same proportion as the increase in the 
implicit price deflator as provided in section 298.24, 
subdivision 1.  
     (10) the proceeds of the tax imposed by section 298.24 
which remain after the distributions in clauses (1) to (9) and 
parts (a) and (b) of this clause have been made shall be divided 
between the taconite environmental protection fund created in 
section 298.223 and the northeast Minnesota economic protection 
trust fund created in section 298.292 as follows:  Two-thirds to 
the taconite environmental protection fund and one-third to the 
northeast Minnesota economic protection trust fund.  The 
proceeds shall be placed in the respective special accounts in 
the general fund. 
     (a) There shall be distributed to each city, town, school 
district, and county the amount that they received under section 
294.26 in calendar year 1977; provided, however, that the amount 
distributed in 1981 to the unorganized territory number 2 of 
Lake County and the town of Beaver Bay based on the 
between-terminal trackage of Erie Mining Company will be 
distributed in 1982 and subsequent years to the unorganized 
territory number 2 of Lake County and the towns of Beaver Bay 
and Stony River based on the miles of track of Erie Mining 
Company in each taxing district. 
     (b) There shall be distributed to the iron range resources 
and rehabilitation board the amounts it received in 1977 under 
section 298.22. 
     On or before October 10 of each calendar year each producer 
of taconite or iron sulphides subject to taxation under section 
298.24 (hereinafter called "taxpayer") shall file with the 
commissioner of revenue an estimate of the amount of tax which 
would be payable by such taxpayer under said law for such 
calendar year; provided such estimate shall be in an amount not 
less than the amount due on the mining and production of 
concentrates up to September 30 of said year plus the amount 
becoming due because of probable production between September 30 
and December 31 of said year, less any credit allowable as 
hereinafter provided.  The commissioner of revenue shall 
annually on or before October 10 report an estimated 
distribution amount to each taxing district and the officers 
with whom such report is so filed shall use the amount so 
indicated as being distributable to each taxing district in 
computing the permissible tax levy of such county or city in the 
year in which such estimate is made, and payable in the next 
ensuing calendar year, except that one cent per taxable ton of 
the amount distributed under clause (4)(c) shall not be deducted 
in calculating the permissible levy.  In any calendar year in 
which a general property tax levy subject to sections 275.50 to 
275.59 has been made, if the taxes distributable to any such 
county or city are greater than the amount estimated by the 
commissioner to be paid to any such county or city in such year, 
the excess of such distribution shall be held in a special fund 
by the county or city and shall not be expended until the 
succeeding calendar year, and shall be included in computing the 
permissible levies under sections 275.50 to 275.59, of such 
county or city payable in such year.  If the amounts 
distributable to any such county or city after final 
determination by the commissioner of revenue under this section 
are less than the amounts by which a taxing district's levies 
were reduced pursuant to this section, such county or city may 
issue certificates of indebtedness in the amount of the 
shortage, and may include in its next tax levy, in excess of the 
limitations of sections 275.50 to 275.59 an amount sufficient to 
pay such certificates of indebtedness and interest thereon, or, 
if no certificates were issued, an amount equal to such shortage.
    There is hereby annually appropriated to such taxing 
districts as are stated herein, to the taconite property tax 
relief account and to the taconite municipal aid account in the 
apportionment fund in the state treasury, to the department of 
revenue, to the iron range resources and rehabilitation board, 
to the range association of municipalities and schools, to the 
taconite environmental protection fund, and to the northeast 
Minnesota economic protection trust fund, from any fund or 
account in the state treasury to which the money was credited, 
an amount sufficient to make the payment or transfer.  The 
payment of the amount appropriated to such taxing districts 
shall be made by the commissioner of revenue on or before May 15 
annually. 
     Sec. 34.  [SCHOOL DISTRICT REVENUE STUDY.] 
     The legislative commission on public education is 
encouraged to conduct a study of school district foundation and 
retirement revenue.  The study may address at least the 
following topics:  
     (1) alternative means of funding school district retirement 
costs, including means of funding retirement costs through the 
foundation revenue formulas;  
     (2) the financial constraints and costs faced by districts 
with highly educated and experienced staff, the adequacy of the 
current training and experience allowance and revenue in tiers 
two through five in recognizing these constraints and costs, and 
the impact of the training and experience allowance on program 
differences among districts and on incentives for district 
personnel decisions;  
     (3) the financial constraints and costs faced by small and 
isolated districts, and the adequacy of the current sparsity 
allowance in recognizing these constraints and costs; 
     (4) an analysis of the financial constraints and costs 
faced by districts with low salaries, and the need for 
additional revenue to enable such districts to raise salaries;  
     (5) an analysis of the financial constraints and costs 
faced by districts with declining enrollments, and the need for 
additional revenue in such districts;  
    (6) an analysis of the financial constraints and costs 
faced by districts with large concentrations of low-income and 
disavantaged pupils, the adequacy of the current AFDC pupil unit 
formula in providing revenue in these districts, and possible 
alternative formulas for education overburden revenue;  
    (7) differences in the average costs of educating 
elementary and secondary pupils, and the adequacy of the current 
pupil unit weightings in addressing these differences;  
     (8) trends in the degree of equalization of school district 
revenues and tax rates;  
     (9) the relationship of the basic formula allowance and 
foundation revenue to school district operating expenditures; 
    (10) the adequacy of unappropriated balances in school 
district operating funds, including the implications of fund 
balances regarding the revenue needs of school districts; 
     (11) the advantages, disadvantages, and cost implications 
of program-based funding; and 
     (12) means to simplify and improve understanding of school 
district funding formulas and laws.  
     The department of finance and the department of education 
shall provide assistance to the commission upon request. 
    Sec. 35.  [ISOLATED SCHOOL AID.] 
    In the 1985-1986 and 1986-1987 school years, a district 
having more than 2,500 square miles in area and operating six or 
more secondary schools shall be entitled to additional 
foundation aid.  The additional aid shall equal $50 times the 
actual pupil units in each of these school years. 
    Sec. 36.  [APPROPRIATION.] 
    Subdivision 1.  [TO DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [FOUNDATION AID.] For foundation aid there is 
appropriated: 
    $685,402,700.....1986, 
    $797,165,000.....1987. 
    The appropriation for 1986 includes $81,869,500 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $603,533,200 
for aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $104,060,900 for aid 
for fiscal year 1986 payable in fiscal year 1987, and 
$693,104,100 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    Subd. 3.  [SUMMER PROGRAMS.] For summer program aid 
pursuant to Minnesota Statutes, section 124A.033, subdivision 3, 
and for summer instructional program aid pursuant to section 
124A.033, subdivision 3a, there is appropriated: 
   $7,878,600.....1986, 
   $7,400,000.....1987. 
    The appropriation for fiscal year 1986 is for aid for 
programs in summer 1985.  The appropriation for fiscal year 1987 
is for aid for programs in summer 1986.  Summer educational 
improvement aid shall not be paid after fiscal year 1986. 
    Subd. 4.  [CANCELLATION.] Except as provided in Minnesota 
Statutes, section 124.14, subdivision 7, none of the amounts 
appropriated in subdivision 3 shall be expended for a purpose 
other than the purpose indicated. 
    Sec. 37.  [REPEALER.] 
    Subdivision 1.  [JULY 1, 1985.] Minnesota Statutes 1984, 
sections 122.531, subdivision 3a, as amended by Laws 1985, 
chapter 248, section 31; 124.201, subdivisions 3, 4 and 5; 
124A.02, subdivisions 4a, 17, and 18; 124A.03, subdivision 5; 
124A.035, subdivision 6; 126.64, subdivision 1; and 275.125, 
subdivision 2j, are repealed. 
    Subd. 2.  [JUNE 30, 1986.] Minnesota Statutes 1984, 
sections 124.2138, subdivision 2; and 124A.037 are repealed. 
    Sec. 38.  [EFFECTIVE DATE.] 
    Subdivision 1.  Section 37, subdivision 2, is effective 
June 30, 1986. 
    Subd. 2.  Section 33 is effective July 15, 1985.  
     Subd. 3.  Sections 5 and 31 are effective for the 1986-1987 
school year and thereafter. 
     Subd. 4.  Sections 16, 17, 18, and 19 are effective 
September 1, 1985, for summer programs to be held in 1986 and 
thereafter. 

                               ARTICLE 2

                             TRANSPORTATION
    Section 1.  Minnesota Statutes 1984, section 123.39, is 
amended by adding a subdivision to read: 
    Subd. 8d.  School districts may provide bus transportation 
along regular school bus routes when space is available for 
participants in early childhood family education programs if 
these services do not result in an increase in the district's 
expenditures for transportation.  The costs allocated to these 
services, as determined by generally accepted accounting 
principles, shall be considered part of the authorized cost for 
regular transportation for the purposes of section 124.225. 
    Sec. 2.  Minnesota Statutes 1984, section 124.223, is 
amended to read: 
    124.223 [TRANSPORTATION AID AUTHORIZATION.] 
    School transportation and related services for which state 
transportation aid is authorized are: 
    (1) [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] Transportation 
or board of resident elementary pupils who reside one mile or 
more from the public schools which they could attend; 
transportation or board of resident secondary pupils who reside 
two miles or more from the public schools which they could 
attend;  transportation to, from, or between the schools the 
resident pupils attend pursuant to a program approved by the 
commissioner of education; transportation of resident elementary 
pupils who reside one mile or more from a nonpublic school 
actually attended; transportation of resident secondary pupils 
who reside two miles or more from a nonpublic school actually 
attended; but with respect to transportation of pupils to 
nonpublic schools actually attended, only to the extent 
permitted by sections 123.76 to 123.79; 
    (2) [OUTSIDE DISTRICT.] Transportation to and from or board 
and lodging in another district, of resident pupils of a 
district without a secondary school; the pupils may attend a 
classified secondary school in another district and shall 
receive board and lodging in or transportation to and from a 
district having a classified secondary school at the expense of 
the district of the pupil's residence; 
    (3) [SECONDARY VOCATIONAL CENTERS.] Transportation to and 
from a state board approved secondary vocational center for 
secondary vocational classes for resident pupils of any of the 
districts who are members of or participating in programs at 
that center; 
    (4) [HANDICAPPED.] Transportation or board and lodging of a 
handicapped pupil when that pupil cannot be transported on a 
regular school bus, the conveying of handicapped pupils between 
home and school and within the school plant, necessary 
transportation of handicapped pupils from home or from school to 
other buildings, including centers such as developmental 
achievement centers, hospitals and treatment centers where 
special instruction or services required by section 120.17 are 
provided, within or outside the district where services are 
provided, and necessary transportation for resident handicapped 
pupils required by section 120.17, subdivision 4a.  
Transportation of handicapped pupils between home and school 
shall not be subject to the requirement in clause (1) that 
elementary pupils reside at least one mile from school and 
secondary pupils reside at least two miles from school in order 
for the transportation to qualify for aid; 
     (5) [BOARD AND LODGING; NONRESIDENT HANDICAPPED.] When 
necessary, board and lodging for nonresident handicapped pupils 
in a district maintaining special classes; 
     (6) [SHARED TIME.] Transportation from one educational 
facility to another within the district for resident pupils 
enrolled on a shared time basis in educational programs approved 
by the commissioner of education, and necessary transportation 
required by section 120.17, subdivision 9 for resident 
handicapped pupils who are provided special instruction and 
services on a shared time basis; 
    (7) [FARIBAULT STATE SCHOOLS.] Transportation for residents 
to and from the Minnesota school for the deaf or the Minnesota 
braille and sight-saving school; 
    (8) [SUMMER SCHOOL INSTRUCTIONAL PROGRAMS.] Services 
described in clauses (1) to (7) and clauses (9) and (10) when 
provided in conjunction with a state board approved summer 
school program eligible for aid and levy under sections 124A.03 
and 124A.033; 
    (9) [COOPERATIVE ACADEMIC AND VOCATIONAL.] Transportation 
to, from or between educational facilities located in any of two 
or more school districts jointly offering academic classes 
approved by the commissioner or secondary vocational classes not 
provided at a secondary vocational center which are approved by 
the commissioner for resident pupils of any of these districts; 
and 
    (10) [NONPUBLIC SUPPORT SERVICES.] Necessary transportation 
within district boundaries between a nonpublic school and a 
public school or a neutral site for nonpublic school pupils who 
are provided pupil support services pursuant to section 123.935. 
    Sec. 3.  Minnesota Statutes 1984, section 124.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
    (1) all expenditures for transportation in the regular 
category, as defined in clause (e)(1), for which aid is 
authorized in section 124.223, plus 
    (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 12-1/2 percent per year of 
the cost of the fleet, plus 
    (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
    (4) beginning in fiscal year 1984, an amount equal to one 
year's depreciation on the district's type three school buses, 
as defined in section 169.44, subdivision 15, which were 
purchased after July 1, 1982 for authorized transportation of 
pupils, with the prior approval of the commissioner, computed on 
a straight line basis at the rate of 20 percent per year of the 
cost of the type three school buses.  
    (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education, and adjusted pursuant 
to subdivision 7a. 
    (d) "Aid entitlement per FTE" means the adjusted authorized 
predicted cost per FTE, inflated pursuant to subdivision 7b.  
    (e) "Transportation category" means a category of 
transportation service provided to pupils.  For the 1984-1985 
and 1985-1986 school years, each category includes 
transportation provided during the regular school year and in 
conjunction with a state board approved summer school 
program eligible for aid and levy under sections 124A.03 and 
124A.033.  For purposes of this section, transportation 
categories for the 1984-1985 and 1985-1986 school years are as 
follows: 
    (1) Regular transportation is transportation services 
provided under section 124.223, clauses (1) and (2), excluding 
transportation between schools under section 124.223, clause (1);
    (2) During-day transportation is transportation services 
between schools provided under section 124.223, clause (1), and 
transportation services provided under section 124.223, clauses 
(3) and (9), and transportation services provided under section 
124.223, clause (6), excluding transportation provided for 
pupils attending shared time special education classes; 
    (3) Handicapped transportation is transportation services 
for pupils attending shared time special education classes 
provided under section 124.223, clause (6), and transportation 
services provided under section 124.223, clause (4), excluding 
board and lodging and excluding transportation to and from board 
and lodging facilities; 
    (4) Board and lodging is services provided, in lieu of 
transportation, under section 124.223, clauses (4) and (5); 
    (5) To and from board and lodging facility transportation 
is transportation services to and from board and lodging 
facilities provided under section 124.223, clauses (4) and (7); 
    (6) Nonpublic health, guidance and counseling 
transportation is transportation services provided under section 
124.223, clause (10); 
    (7) Nonregular transportation is transportation services 
provided between schools under section 124.223, clause (1); and 
transportation services provided under section 124.223, clauses 
(3), (4), (5), (6), (7), (9), and (10).  
     For the purposes of this section, transportation categories 
for the 1986-1987 school year and thereafter are as follows: 
     (1) Regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) and (2), excluding transportation between schools 
under section 124.223, clause (1); 
     (2) Nonregular transportation is transportation services 
provided between schools under section 124.223, clause (1); and 
transportation services provided under section 124.223, clauses 
(3), (4), (5), (6), (7), (8), (9), and (10). 
    (f) "Pupil weighting factor" means the ratio of the actual 
district average cost per FTE in a particular transportation 
category in the base year to the actual district average cost 
per FTE in the regular transportation category in the base year. 
    (g) "Weighted FTE's" means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
    (h) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
    (i) "Percent excess handicapped FTE's transported" means 
the result of the following computation for the current year:  
    one, minus the product of 
    (1) the ratio of the number of FTE pupils transported in 
the handicapped category in the state to the number of FTE 
pupils transported in the handicapped category in the district; 
times 
    (2) the ratio of the number of FTE pupils transported in 
the regular category in the district to the number of FTE pupils 
transported in the regular category in the state.  
    (j) "Current year" means the school year for which aid will 
be paid.  
    (k) (j) "Base year" means the second school year preceding 
the school year for which aid will be paid.  
    (l) (k) "Base cost" means the authorized regular 
transportation cost per FTE in the base year in the regular 
transportation category, excluding summer school transportation. 
    (m) (l) "Predicted base cost" means the base cost as 
predicted by subdivision 3.  
    Sec. 4.  Minnesota Statutes 1984, section 124.225, 
subdivision 3, is amended to read: 
    Subd. 3.  [FORMULA.] For each school year, the state shall 
pay to each school district for all pupil transportation and 
related services for which the district is authorized by law to 
receive state aid an amount determined according to this 
section.  The department of education shall conduct multiple 
regression analysis using the terms specified in subdivision 4a 
for the 1982-1983 and 1983-1984 school years, and using the 
terms specified in subdivision 4b for the 1984-1985 school year 
and each school year thereafter to predict the base cost for 
each district.  Each year a formula shall be derived based upon 
the regression analysis, but excluding the factor described in 
subdivision 4a, clause (9), in the formula for the 1983-1984 
school year.  Each year the formula and shall be used to 
determine a predicted base cost for each district.  The amount 
determined for each district shall be adjusted according to the 
provisions of subdivisions 7a and 7b. 
    Sec. 5.  Minnesota Statutes 1984, section 124.225, 
subdivision 4b, is amended to read: 
    Subd. 4b.  [FORMULA TERMS, 1984-1985 AND AFTER.] To predict 
the logarithm of the base cost for each district pursuant to 
subdivision 3 for the 1984-1985 school year and each school year 
thereafter, the multiple regression formula shall use the 
following terms for each district: 
    (1) The logarithm of the lesser of (a) the number of 
authorized FTE's per square mile transported by the district in 
the regular transportation category, or (b) 200; 
    (2) Whether the district is nonrural, based upon criteria 
established by the department of education; and 
    (3) The logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district.  
    Sec. 6.  Minnesota Statutes 1984, section 124.225, 
subdivision 7a, is amended to read:  
    Subd. 7a.  [BASE YEAR SOFTENING FORMULA.] (1) For fiscal 
year 1983, each district's predicted base cost determined 
according to subdivision 3 shall be adjusted as provided in this 
clause to determine adjusted authorized predicted cost per FTE 
for the base school year.  
    (a) If the predicted base cost exceeds the base cost, the 
predicted base cost shall be decreased by 50 percent of the 
first $40 of difference between the base cost and the predicted 
base cost; 70 percent of the next $40 of difference; and 90 
percent of any difference which exceeds $80, to determine the 
adjusted authorized predicted cost per FTE.  
    (b) If the predicted base cost is less than the base cost, 
the predicted base cost shall be increased by 50 percent of the 
first $40 of difference between the base cost and the predicted 
base cost; 70 percent of the next $40 of difference; and 90 
percent of any difference which exceeds $80, to determine the 
adjusted authorized predicted cost per FTE.  
    (2) For fiscal year 1984 and each year thereafter, Each 
district's predicted base cost determined for each school year 
according to subdivision 3 shall be adjusted as provided in this 
clause to determine the district's adjusted authorized predicted 
cost per FTE for that year.  
    (a) If the base cost of the district is within five percent 
of the predicted base cost, the district's adjusted authorized 
predicted cost per FTE shall be equal to the base cost.  
    (b) If the base cost of the district is more than five 
percent greater than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 105 
percent of the predicted base cost, plus 40 percent of the 
difference between (i) the base cost, and (ii) 105 percent of 
the predicted base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be less than 80 
percent of base cost.  
    (c) If the base cost of the district is more than five 
percent less than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 95 
percent of the predicted base cost, minus 40 percent of the 
difference between (i) 95 percent of predicted base cost, and 
(ii) the base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be more than 120 
percent of base cost.  
    Sec. 7.  Minnesota Statutes 1984, section 124.225, 
subdivision 7b, is amended to read: 
    Subd. 7b.  [INFLATION FACTORS.] The adjusted authorized 
predicted cost per FTE determined for a district under 
subdivision 7a for the base year shall be increased by 22 
percent to determine the district's aid entitlement per FTE for 
the 1982-1983 school year, by 11.7 percent to determine the 
district's aid entitlement per FTE for the 1983-1984 school 
year, and by 10.3 percent to determine the district's aid 
entitlement per FTE for the 1984-1985 school year, by 8.9 
percent to determine the district's aid entitlement per FTE for 
the 1985-1986 school year, and by 6.7 percent to determine the 
district's aid entitlement per FTE for the 1986-1987 school year.
    Sec. 8.  Minnesota Statutes 1984, section 124.225, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [AID.] For the 1982-1983 and 1983-1984 school 
years, a district's transportation aid shall be equal to the sum 
of its basic transportation aid pursuant to subdivision 8b, its 
excess handicapped transportation aid pursuant to subdivision 
8c, its handicapped board and lodging aid pursuant to 
subdivision 8d, its to and from board and lodging aid pursuant 
to subdivision 8e, its nonpublic support services transportation 
aid pursuant to subdivision 8f, its during-day transportation 
aid pursuant to subdivision 8g, and its closed-school 
transportation aid pursuant to subdivision 8h, minus the amount 
raised by two mills times the adjusted assessed valuation which 
is used to compute the transportation levy limitation for the 
levy attributable to that school year.  For the 1983-1984 school 
year transportation aid for a district which contracted for 
pupil transportation services in the 1981-1982 school year shall 
be reduced by an amount equal to $18 times the number of FTE 
pupils transported on contracted school buses in the base year 
in the regular transportation category.  A district may levy 
less than the amount raised by two mills.  Transportation aid 
shall be computed as if the district had levied the amount 
raised by two mills.  Aid for the 1982-1983 and 1983-1984 school 
years shall also be reduced by the following amount:  the 
product of 
    (a) the number of nonhandicapped secondary pupils 
transported in the base year who live between one and two miles 
from the public school which they could attend or the nonpublic 
school actually attended, times 
    (b) 1.5, divided by the average distance to school for all 
FTE's transported in the district in the regular transportation 
category in the base year, times 
    (c) the district's aid entitlement per FTE determined 
according to subdivision 7b, times the ratio of average daily 
membership used in subdivision 8b.  
    For the 1984-1985 and 1985-1986 school year and thereafter, 
years a district's transportation aid shall be equal to the sum 
of its basic transportation aid pursuant to subdivision 8b, its 
nonregular transportation aid pursuant to subdivision 8i, and 
its nonregular transportation levy equalization aid pursuant to 
subdivision 8j, minus its contracted services and aid reduction 
pursuant to subdivision 8k, minus the amount raised by 1.75 
mills times the adjusted assessed valuation which is used to 
compute the transportation levy limitation for the levy 
attributable to that school year.  A district may levy less than 
the amount raised by 1.75 mills.  Transportation aid shall be 
computed as if the district had levied the amount raised by 1.75 
mills.  
    For the 1986-1987 school year and each year thereafter, a 
district's transportation aid shall be equal to the sum of its 
basic transportation aid pursuant to subdivision 8b, its 
nonregular transportation aid pursuant to subdivision 8i, and 
its nonregular transportation levy equalization aid pursuant to 
subdivision 8j, minus its contracted services aid reduction 
pursuant to subdivision 8k, minus the amount raised by 2.25 
mills times the adjusted assessed valuation which is used to 
compute the transportation levy limitation for the levy 
attributable to that school year.  A district may levy less than 
the amount raised by 2.25 mills.  Transportation aid shall be 
computed as if the district had levied the amount raised by 2.25 
mills. 
    If the total appropriation for transportation aid for any 
fiscal year is insufficient to pay all districts the full amount 
of aid earned, the department of education shall reduce each 
district's aid in proportion to the number of resident pupils in 
average daily membership in the district to the state total 
average daily membership, and shall reduce the aid entitlement 
of off-formula districts in the same proportion.  
    Sec. 9.  Minnesota Statutes 1984, section 124.225, 
subdivision 8b, is amended to read: 
    Subd. 8b.  [BASIC AID COMPUTATION.] For the 1982-1983 and 
1983-1984 school years, a district's basic transportation aid 
pursuant to this section for the school year shall equal the 
district's aid entitlement per FTE determined according to 
subdivision 7b times the total number of authorized weighted 
FTE's transported in the regular and handicapped transportation 
categories in the district in the base year times the ratio of 
average daily membership in the district in the current year to 
the average daily membership in the district in the base year. 
    For the 1984-1985 school year and thereafter, A district's 
basic transportation aid pursuant to this section for each 
school year shall equal the district's aid entitlement per FTE 
determined according to subdivision 7b, times the total number 
of authorized FTE's transported in the regular category in the 
district in the current school year.  
    Sec. 10.  Minnesota Statutes 1984, section 124.225, 
subdivision 10, is amended to read: 
    Subd. 10.  [DEPRECIATION.] Any school district which owns 
school buses or mobile units shall transfer annually from the 
unappropriated fund balance account in its transportation fund 
to the appropriated fund balance account for bus purchases in 
its transportation fund at least an amount equal to 12-1/2 
percent of the original cost of each type one or type two bus or 
mobile unit until the original cost of each type one or type two 
bus or mobile unit is fully amortized, plus 20 percent of the 
original cost of each type three bus included in the district's 
authorized cost under the provisions of subdivision 1, clause 
(b)(4), until the original cost of each type three bus is fully 
amortized, plus 33-1/3 percent of the cost to the district as of 
July 1 of each year for school bus reconditioning done by the 
department of corrections until the cost of the reconditioning 
is fully amortized; provided, if the district's transportation 
aid is reduced pursuant to subdivision 8a because the 
appropriation for that year is insufficient, this amount shall 
be reduced in proportion to the reduction pursuant to 
subdivision 8a as a percentage of the sum of 
    (1) the district's total transportation aid without the 
reduction pursuant to subdivision 8a, plus 
    (2) for fiscal years 1983 and 1984, an amount equal to two 
mills times the adjusted assessed valuation which is used to 
compute the levy limitation for the levy attributable to that 
year, or for fiscal year years 1985 and thereafter 1986 an 
amount equal to 1.75 mills times the adjusted assessed valuation 
of the district for the preceding year, and for fiscal year 1987 
and thereafter, 2.25 mills times the adjusted assessed valuation 
of the district for the preceding year.  Any school district may 
transfer any amount from the unappropriated fund balance account 
in its transportation fund to any other operating fund or to the 
appropriated fund balance account for bus purchases in its 
transportation fund. 
    Sec. 11.  Minnesota Statutes 1984, section 275.125, 
subdivision 5, is amended to read:  
    Subd. 5.  [BASIC TRANSPORTATION LEVY.] For school 
transportation services, a school district may levy an amount 
not to exceed the amount raised by a levy of 1.75 2.25 mills 
times the adjusted assessed valuation of the taxable property of 
the district for the preceding year.  
    Sec. 12.  Minnesota Statutes 1984, section 275.125, 
subdivision 5b, is amended to read: 
    Subd. 5b.  [TRANSPORTATION LEVY OFF-FORMULA ADJUSTMENT.] In 
fiscal years 1983 and 1984 if the transportation levy in a 
district attributable to each fiscal year of two mills times the 
adjusted assessed valuation of the district exceeds the 
transportation aid computation under section 124.225, 
subdivisions 8b, 8c, 8d, 8e, 8f, 8g, and 8h, the district's 
transportation levy limitation shall be adjusted as provided in 
this subdivision.  In the year following each of those fiscal 
years, the district's transportation levy shall be reduced by an 
amount equal to the difference between (1) two mills times the 
adjusted assessed valuation of the district, and (2) the sum of 
the district's transportation aid computation pursuant to 
section 124.225, subdivisions 8b, 8c, 8d, 8e, 8f, 8g, and 8h, 
less the amount of any aid reduction due to an insufficient 
appropriation as provided in section 124.225, subdivision 8a.  
    In any fiscal year 1985 and each fiscal year thereafter, if 
the basic transportation levy under subdivision 5 in a district 
attributable to a particular fiscal year of 1.75 mills times the 
adjusted assessed valuation of the district exceeds the 
transportation aid computation under section 124.225, 
subdivisions 8b, 8i, 8j, and 8k, the district's levy limitation 
shall be adjusted as provided in this subdivision.  In the year 
following each fiscal year, the district's transportation levy 
shall be reduced by an amount equal to the difference between 
(1) 1.75 mills times the adjusted assessed valuation of the 
district the amount of the basic transportation levy under 
subdivision 5, and (2) the sum of the district's transportation 
aid computation pursuant to section 124.225, subdivisions 8b, 
8i, 8j, and 8k, and the amount of any subtraction made from 
special state aids pursuant to section 124.2138, subdivision 2, 
less the amount of any aid reduction due to an insufficient 
appropriation as provided in section 124.225, subdivision 8a.  
    For the levies certified in 1983 and 1984, the following 
additional amount shall be subtracted:  
    the product of 
    (a) the number of nonhandicapped secondary pupils 
transported in the base year who live between one and two miles 
from the public school which they could attend or the nonpublic 
school actually attended, times 
    (b) 1.5, divided by the average distance to school for all 
FTE's transported in the district in the regular transportation 
category in the base year, times 
    (c) the district's aid entitlement per FTE determined 
according to section 124.225, subdivision 7b, times the ratio of 
average daily membership in the district in the current year to 
average daily membership in the district in the base year.  
    Sec. 13.  Minnesota Statutes 1984, section 275.125, 
subdivision 5d, is amended to read: 
    Subd. 5d.  [EXCESS TRANSPORTATION LEVY.] A school district 
may also make an excess transportation levy pursuant to this 
clause, which shall be the sum of:  
    (a) the district's actual cost in the school year after the 
year in which the excess transportation levy is certified for 
transportation to and from school of secondary pupils who live 
more than one mile but less than two miles from the public 
school which they could attend or from a nonpublic school 
actually attended, plus 
    (b) the district's actual cost in the school year after the 
year in which the excess transportation levy is certified for 
transportation costs or other related services which are 
necessary because of extraordinary traffic hazards, excluding 
the costs in paragraph (a); plus 
    (c) the amount necessary to eliminate any projected deficit 
in the appropriated fund balance account for bus purchases in 
its transportation fund as of June 30 in the school year 
beginning in the calendar year following the calendar year the 
levy is certified; plus 
    (d) an amount equal to the aid subtraction computed 
pursuant to section 124.225, subdivision 8k, for the school year 
beginning in the year the levy is certified; except that for the 
1983 payable 1984 levy, this amount shall be based upon the aid 
subtraction for the 1984-1985 school year.  These amounts shall 
be placed in the transportation fund and used for any lawful 
purpose. 
    Levies authorized by this subdivision shall be computed 
according to procedures established by the commissioner.  
    Sec. 14.  Laws 1985, chapter 280, section 4, is amended to 
read: 
    Sec. 4.  [REPEALER.] 
    Section 3 is repealed September 1, 1986 1985. 
    Sec. 15.  [APPROPRIATIONS.] 
    Subdivision 1.  [TO DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
there is appropriated: 
$ 88,993,600....1986, 
$ 84,587,100....1987. 
    (a) The appropriation for 1986 includes $12,284,400 for aid 
for fiscal year 1985 payable in fiscal year 1986 and $76,709,200 
for fiscal year 1986 payable in fiscal year 1986. 
    (b) The appropriation for 1987 includes $13,536,900 for aid 
for fiscal year 1986 payable in fiscal year 1987 and $71,050,200 
for fiscal year 1987 payable in fiscal year 1987. 
    (c) The appropriations are based on aid entitlements of 
$90,246,100 for fiscal year 1986 and $83,588,400 for fiscal year 
1987. 
    Subd. 3.  [INTERDISTRICT TRANSPORTATION AID; PROGRAMS OF 
EXCELLENCE.] For transportation of pupils to programs of 
excellence pursuant to Minnesota Statutes 1984, section 126.62, 
subdivision 6, there is appropriated: 
 $17,000.....1986, 
 $17,000.....1987. 
    This aid shall be paid at 100 percent of the entitlement 
for the current fiscal year. 
    Subd. 4.  [TRANSPORTATION AID FOR CHOICE PROGRAMS.] For 
transportation of pupils who attend post-secondary institutions 
pursuant to article 5 there is appropriated:  
 $50,000.....1986. 
    The commissioner shall allocate this appropriation among 
school districts based upon criteria adopted by the state board 
of education under article 5, section 1, subdivision 8.  This 
money shall be available until June 30, 1987. 
    Subd. 5.  [PRORATION.] Except as provided in section 
124.14, subdivision 7, none of the amounts appropriated in this 
section shall be expended for a purpose other than the purpose 
indicated.  If the appropriation amount attributable to either 
year for any purposes indicated plus the amount of any transfers 
made according to section 124.14, subdivision 7, is 
insufficient, the aid for that year shall be prorated among all 
qualifying districts in the manner prescribed in Minnesota 
Statutes, section 124.225, subdivision 8a. 
    Sec. 16.  [REPEALER.] 
    Minnesota Statutes 1984, section 124.225, subdivisions 4a, 
8c, 8d, 8e, 8f, 8g, and 8h are repealed. 

                               ARTICLE 3 

                           SPECIAL EDUCATION 
    Section 1.  Minnesota Statutes 1984, section 120.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every child who is deaf, hard of hearing, 
blind, partially seeing, crippled or who has defective has a 
hearing impairment, visual handicap, speech or who is otherwise 
physically impaired in body or limb so that he or language 
impairment, physical handicap, other health impairment, mental 
handicap, emotional/behaviorial disorder, specific learning 
disability, or deaf/blind handicap and needs special instruction 
and services, but who is educable, as determined by the 
standards of the state board, is a handicapped child.  
    Sec. 2.  Minnesota Statutes 1984, section 120.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SPECIAL INSTRUCTION FOR HANDICAPPED 
CHILDREN OF SCHOOL AGE.] Every district shall provide special 
instruction and services, either within the district or in 
another district, for handicapped children of school age who are 
residents of the district and who are handicapped as set forth 
in section 120.03.  School age means the ages of four years 
three to 21 years for children who are handicapped as defined in 
section 120.03 and shall not extend beyond secondary school or 
its equivalent.  For purposes of this subdivision, the age of a 
handicapped child shall be his the age as of September 1 of the 
calendar year in which the school year for which he the child 
seeks special instruction and services commences.  Every 
district may provide special instruction and services for 
handicapped children who have not attained school age.  Local 
health, education, and social service agencies shall refer 
children from age three to five who are suspected of needing 
special instruction and services to the school district.  A 
school district is encouraged to contract with a developmental 
achievement center when the center is cost efficient for the 
district and when the center provides continuity of special 
instruction and services for handicapped children under the age 
of five and their families.  Districts with less than the 
minimum number of eligible handicapped children as determined by 
the state board shall cooperate with other districts to maintain 
a full sequence range of programs for education, training and 
services for handicapped children as defined in section 120.03.  
This subdivision does not alter the compulsory attendance 
requirements of section 120.10. 
    Sec. 3.  Minnesota Statutes 1984, section 120.17, 
subdivision 2, is amended to read: 
    Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] Special 
instruction or training and services for handicapped children 
may be provided by one or more of the following methods: 
    (a) Special instruction and services in connection with 
attending regular elementary and secondary school classes; 
    (b) The establishment of special classes; 
    (c) Instruction and services at the home or bedside of the 
child; 
    (d) Instruction and services in other districts; 
    (e) Instruction and services Instruction and services in 
special education cooperative centers established under section 
120.17, or in another member district of the cooperative center 
to which the resident district of the handicapped child belongs; 
    (f) in a state university laboratory school or a University 
of Minnesota laboratory school; 
    (f) Instruction and services (g) in a state residential 
school or a school department of a state institution approved by 
the commissioner; or by any other method approved by him; 
    (g) Instruction and services (h) in other states; 
    (h) Contract (i) by contracting with public, private or 
voluntary agencies; 
    (j) for children under age five and their families, 
programs and services established through collaborative efforts 
with other agencies or within the district; and 
    (k) any other method approved by the commissioner. 
    The primary responsibility for the education of a 
handicapped child shall remain with the district of the child's 
residence regardless of which method of providing special 
instruction or training and services is used. 
    Sec. 4.  Minnesota Statutes 1984, section 120.17, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULES OF THE STATE BOARD.] The state board shall 
promulgate rules relative to qualifications of essential 
personnel, courses of study or training, methods of instruction 
and training, pupil eligibility, size of classes, rooms, 
equipment, supervision, parent consultation, and any other rules 
and standards it deems necessary, for instruction of handicapped 
children.  These rules shall provide standards and procedures 
appropriate for the implementation of and within the limitations 
of subdivisions 3a and 3b.  These rules shall also provide 
standards for the discipline, control, management and protection 
of handicapped children.  The state board shall not adopt rules 
for pupils served in levels 1, 2, or 3, as defined in Minnesota 
Rules, part 3525.2340, establishing either case loads or the 
maximum number of pupils that may be assigned to special 
education teachers.  The state board shall, according to section 
14.05, subdivision 4, notify a district applying for a variance 
from the rules within 45 calendar days of receiving the request 
whether the request for the variance has been granted or 
denied.  If a request is denied, the board shall specify the 
program standards used to evaluate the request and the reasons 
for denying the request. 
    Sec. 5.  Minnesota Statutes 1984, section 120.17, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULES OF THE STATE BOARD.] The state board shall 
promulgate rules relative to qualifications of essential 
personnel, courses of study or training, methods of instruction 
and training, pupil eligibility, size of classes, rooms, 
equipment, supervision, parent consultation, and any other rules 
and standards it deems necessary, for instruction of handicapped 
children.  These rules shall provide standards and procedures 
appropriate for the implementation of and within the limitations 
of subdivisions 3a and 3b.  These rules shall also provide 
standards for the discipline, control, management and protection 
of handicapped children.  The state board, in consultation with 
the departments of health and human services, may adopt 
emergency rules and shall adopt permanent rules for instruction 
and services for children from age three to five and their 
families.  A developmental achievement center contracting with a 
school district to provide special instruction and services is 
eligible for variance from rules relating to personnel 
licensure.  The licensure variance for a developmental 
achievement center shall be granted according to the same 
procedures and criteria used for granting a variance to a school 
district.  The state board shall, according to section 14.05, 
subdivision 4, notify a district applying for a variance from 
the rules within 45 calendar days of receiving the request 
whether the request for the variance has been granted or 
denied.  If a request is denied, the board shall specify the 
program standards used to evaluate the request and the reasons 
for denying the request.  
    Sec. 6.  Minnesota Statutes 1984, section 120.17, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
shall ensure that: 
    (a) All handicapped children are provided the special 
instruction and services which are appropriate to their needs; 
    (b) Handicapped children from age three to five and their 
families are provided special instruction and services 
appropriate to the child's level of functioning and needs; 
    (c) Handicapped children and their parents or guardians are 
guaranteed procedural safeguards and the right to participate in 
decisions involving identification, assessment and educational 
placement of handicapped children; 
    (c) (d) To the maximum extent appropriate, handicapped 
children, including those in public or private institutions or 
other care facilities, are educated with children who are not 
handicapped, and that special classes, separate schooling, or 
other removal of handicapped children from the regular 
educational environment occurs only when and to the extent that 
the nature or severity of the handicap is such that education in 
regular classes with the use of supplementary services cannot be 
achieved satisfactorily; 
    (d) (e) In accordance with recognized professional 
standards, testing and evaluation materials and procedures 
utilized for the purposes of classification and placement of 
handicapped children are selected and administered so as not to 
be racially or culturally discriminatory; and 
    (e) (f) The rights of the child are protected when the 
parents or guardians are not known or not available, or the 
child is a ward of the state. 
    Sec. 7.  Minnesota Statutes 1984, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 12.  [INTERAGENCY EARLY LEARNING COMMITTEE.] A 
district, group of districts, or special education cooperative, 
in cooperation with the county or counties in which the district 
or cooperative is located, shall establish an interagency early 
learning committee for handicapped children under age five and 
their families.  Members of the committee shall be 
representatives of local and regional health, education, and 
county human service agencies; developmental achievement 
centers; current service providers; parents of young handicapped 
children; and other private or public agencies as appropriate.  
The committee shall elect a chair from among its members and 
shall meet regularly.  The committee shall perform the following 
ongoing duties: 
    (1) identify current services and funding being provided 
within the community for handicapped children under the age of 
five and their families; 
    (2) establish and evaluate the identification, referral, 
and community learning systems to recommend, where necessary, 
alterations and improvements; 
    (3) facilitate the development of interagency individual 
education plans when necessary to appropriately serve 
handicapped children under the age of five and their families; 
    (4) review and comment on the early learning section of the 
total special education system for the district; and 
    (5) review and comment on the funding sources that 
currently exist for the services being provided to handicapped 
children under the age of five and their families in the area. 
    The departments of education, health, and human services 
are encouraged to provide assistance to the local agencies in 
developing cooperative plans for providing services. 
    Sec. 8.  Minnesota Statutes 1984, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 13.  [MAINTENANCE OF EFFORT.] For fiscal year 1986 
the departments of education, health, and human services shall 
not reduce the level of funding for services for handicapped 
children under age five and their families below the level of 
funding provided in fiscal year 1985.  For the period from July 
1, 1985 to June 30, 1986 a local or regional health or human 
services agency or county board currently providing services to 
handicapped children under age five and their families through a 
developmental achievement center or other delivery system shall 
not decrease the level of services or the dollar amount provided 
for the services below the level of services or the dollar 
amount provided by it for the period from July 1, 1984 to June 
30, 1985.  For the 1985-1986 school year a school district 
currently providing services to handicapped children under age 
five and their families shall not decrease the level of services 
or the expenditure level below the level of services or the 
dollar amount provided by it in the 1984-1985 school year. 
    Beginning with the period from July 1, 1986 to June 30, 
1987 a local or regional health or human services agency or 
county board shall not decrease the level of services or the 
dollar amount provided for those services below the level of 
services or the dollar amount provided by it for the period from 
July 1, 1984 to June 30, 1985 unless the county and school 
district have entered into an agreement for continued funding of 
services to handicapped children and their families and a copy 
of the agreement has been filed with the departments of 
education, health, and human services.  This prohibition applies 
to all funding levels regardless of the source. 
   This subdivision applies only to services that are special 
instruction and services, within the meaning of this section, 
and that reasonably would be the responsibility of a school 
district. 
    Sec. 9.  [120.183] [INTERAGENCY OFFICE ON TRANSITION 
SERVICES.] 
    The commissioner of education shall establish an 
interagency office on transition services to:  
    (1) gather and coordinate data on transition services for 
secondary age handicapped pupils; 
    (2) provide information, consultation, and technical 
assistance to state and local agencies involved in the delivery 
of services to handicapped pupils in transition from secondary 
school programs to employment and post-secondary training 
programs; 
    (3) assist agencies in establishing local interagency 
agreements to assure the necessary services for efficient and 
appropriate transition from school to work or post-secondary 
training programs; and 
    (4) assist regions and local areas in planning interagency 
inservice training to develop and improve transition services.  
    Sec. 10.  Minnesota Statutes 1984, section 124.273, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [1983-1984 TEACHERS SALARIES.] For the 1983-1984 
school year, and each year thereafter, The department state 
shall pay a school district 65 percent a portion of the salary, 
calculated from the date of hire, of one full time equivalent 
teacher for each 45 pupils of limited English proficiency 
enrolled in the district, or a pro rata amount thereof for 
increments of fewer than 45 pupils.  Notwithstanding the 
foregoing, the department state shall pay 65 percent a portion 
of the salary, calculated from the date of hire, of one-half of 
a full time equivalent teacher to a district with 22 or fewer 
pupils of limited English proficiency enrolled.  The portion for 
a full-time teacher shall be the lesser of 65 percent of the 
salary or $18,100.  The portion for a part-time or limited-time 
teacher shall be the lesser of 65 percent of the salary or the 
product of $18,100 times the ratio of the person's actual 
employment to full-time employment. 
    Sec. 11.  Minnesota Statutes 1984, section 124.32, 
subdivision 1b, is amended to read:  
    Subd. 1b.  [1983-1984 TEACHERS SALARIES.] Beginning in the 
1983-1984 school year and Each year thereafter, the state shall 
pay to any a district for the employment in its educational a 
portion of the salary of each essential person employed in the 
district's program for handicapped children 70 percent of the 
salary of essential personnel for during the normal regular 
school year for each full time person employed, or a pro rata 
amount for a part time person or a person employed for a limited 
time, whether the essential personnel are person is employed by 
a district alone or jointly with another district one or more 
districts.  The portion for a full-time person shall be the 
lesser of 70 percent of the salary or $19,500.  The portion for 
a part-time or limited-time person shall be the lesser of 70 
percent of the salary or the product of $19,500 times the ratio 
of the person's actual employment to full-time employment. 
    Sec. 12.  Minnesota Statutes 1984, section 124.32, 
subdivision 1d, is amended to read: 
    Subd. 1d.  [CONTRACT SERVICES.] (1) Except for the 
1982-1983 school year, For special instruction or training and 
services provided for during the regular school year to any 
pupil pursuant to section 120.17, subdivision 2, clause (h), by 
contract with public, private or voluntary agencies other 
than Minnesota school districts, the state shall pay each 
district 60 55 percent of the difference between the amount of 
the contract and the foundation aid formula allowance of the 
district for that pupil or a pro rata portion of the foundation 
aid formula allowance for pupils who receive services by 
contract on less than a full time basis.  
    (2) Except for the 1982-1983 school year, For special 
instruction or training and services provided for a pupil by 
such a contract as part of a summer school program, the state 
shall pay each district 60 55 percent of the difference between 
the amount of the contract and the summer school revenue 
allowance of the district attributable to that pupil.  
    Sec. 13.  Minnesota Statutes 1984, section 124.32, 
subdivision 2, is amended to read: 
    Subd. 2.  [SUPPLY AND EQUIPMENT AID.] Except for the 
1982-1983 school year, The state shall pay each district for 
supplies and equipment purchased or rented for use in the 
instruction of handicapped children an amount equal to one-half 
of the sum actually expended by the district but not to exceed 
an average of $50 in any one school year for each handicapped 
child receiving instruction. 
    Sec. 14.  Minnesota Statutes 1984, section 124.32, is 
amended by adding a subdivision to read: 
    Subd. 2b.  [TRAVEL AID.] The state shall pay each district 
one-half of the sum actually expended by a district for 
necessary travel of essential personnel providing home-based 
services to handicapped children under age five and their 
families. 
    Sec. 15.  Minnesota Statutes 1984, section 124.32, 
subdivision 5, is amended to read: 
   Subd. 5.  [RESIDENTIAL AID.] When a handicapped child is 
placed in a residential facility approved by the commissioner 
and established primarily to serve handicapped children and when 
the child's educational program is approved by the commissioner, 
the state shall pay aid to the resident district under the 
provisions of this subdivision.  Except for the 1981-1982 
regular school year, The aid shall be an amount not to exceed 60 
percent of the difference between the instructional costs 
charged to the resident district and the foundation aid formula 
allowance, for each handicapped child placed in a residential 
facility.  Except for 1982 summer school programs, The aid for 
summer school programs for each handicapped child placed in a 
residential facility shall be an amount not to exceed 60 percent 
of the difference between the instructional costs charged to the 
resident district and the summer school revenue allowance in the 
resident district attributable to that child.  Aid for these 
programs shall be paid on a reimbursement basis by October 31 
following completion of the program.  No aid shall be paid 
pursuant to this subdivision for tuition charged a resident 
district pursuant to section 120.17, subdivision 7a, for a child 
placed at the Minnesota school for the deaf or the Minnesota 
braille and sight-saving school. 
    The following types of facilities may be approved by the 
commissioner: 
    (a) A residential facility operated by the state or public 
school district and designed to serve the low incidence 
handicapped, the multiple handicapped, or the most severely 
handicapped children within the state.; 
    (b) A private, nonsectarian residential facility designed 
to provide educational services for handicapped children within 
the state.; and 
    (c) A state hospital or private nonsectarian residential 
center designed to provide care and treatment for handicapped 
children. 
    Sec. 16.  Minnesota Statutes 1984, section 124.32, 
subdivision 7, is amended to read: 
    Subd. 7.  [PROGRAM AND AID APPROVAL.] Before June 1 of each 
year, each district providing special instruction and services 
to handicapped children shall submit to the commissioner an 
application for approval of these programs and their budgets for 
the next school year.  The application shall include an 
enumeration of the costs proposed as eligible for state aid 
pursuant to this section and of the estimated number and grade 
level of handicapped children in the district who will receive 
special instruction and services during the next school year.  
The application shall also include any other information deemed 
necessary by the commissioner for the calculation of state aid 
and for the evaluation of the necessity of the program, the 
necessity of the personnel to be employed in the program, the 
amount which the program will receive from grants from federal 
funds, or special grants from other state sources, and the 
program's compliance with the rules and standards of the state 
board.  The commissioner shall review each application to 
determine whether the program and the personnel to be employed 
in the program are actually necessary and essential to meet the 
district's obligation to provide special instruction and 
services to handicapped children pursuant to section 120.17.  
The commissioner shall not approve aid pursuant to this section 
for any program or for the salary of any personnel he determines 
determined to be unnecessary or unessential on the basis of this 
review.  The commissioner may also withhold all or any portion 
of the aid for programs which receive grants from federal funds, 
or special grants from other state sources.  By August 31, when 
the first aid payment is made, the commissioner shall approve, 
disapprove or modify each application, and notify each applying 
district of the action and of the estimated amount of aid for 
the programs.  The commissioner shall provide procedures for 
districts to submit additional applications for program and 
budget approval during the school year, for programs needed to 
meet any substantial changes in the needs of handicapped 
children in the district.  Notwithstanding the provisions of 
section 124.15, the commissioner may modify or withdraw the 
program or aid approval and withhold aid pursuant to this 
section without proceeding according to section 124.15 at any 
time the commissioner determines that the program does not 
comply with rules of the state board or that any facts 
concerning the program or its budget differ from the facts in 
the district's approved application. 
    Sec. 17.  Minnesota Statutes 1984, section 124.32, 
subdivision 10, is amended to read: 
    Subd. 10.  [SUMMER SCHOOL.] The state shall pay aid for 
summer school programs for handicapped children on the basis of 
the sections of Minnesota Statutes providing aid for handicapped 
children subdivisions 1b, 1d, and 5 for the preceding school 
year.  By March 15 of each year, districts shall submit separate 
applications for program and budget approval for summer school 
programs.  The review of these applications shall be as provided 
in subdivision 7.  By May 1 of each year, the commissioner shall 
approve, disapprove or modify the applications and notify the 
districts of the action and of the estimated amount of aid for 
the summer school programs.  Aid for these programs shall be 
paid by November 15 after the summer when the programs are 
conducted. 
    Sec. 18.  Minnesota Statutes 1984, section 124.574, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SALARIES.] For the 1983-1984 school year and 
Each year thereafter, the state shall pay to any district or 
cooperative center 70 percent a portion of the salaries paid to 
salary of each essential licensed personnel in person employed 
during that school year for services rendered in that district 
or center's secondary vocational education programs for 
handicapped children.  The portion for a full-time person shall 
be the lesser of 70 percent of the salary or $19,500.  The 
portion for a part-time or limited-time person shall be the 
lesser of 70 percent of the salary or the product of $19,500 
times the ratio of the person's actual employment to full-time 
employment.  
    Sec. 19.  Minnesota Statutes 1984, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 8c.  [SPECIAL EDUCATION LEVY.] A district, excluding 
intermediate school district Nos. 287, 916, and 917, may levy an 
amount that may not exceed 70 percent of salaries paid to 
essential personnel in that district minus the amount of state 
aid and any federal aid, if applicable, paid to that district 
for salaries of these essential personnel under sections 124.32, 
subdivisions 1b and 10 and 124.574, subdivision 2b plus 65 
percent of salaries paid to essential personnel in that district 
minus the amount of state aid and any federal aid, if 
applicable, paid to that district for salaries of these 
essential personnel under section 124.273, subdivision 1b for 
the year to which the levy is attributable.  
    For purposes of this subdivision, a special education 
cooperative or an intermediate school district each year shall 
allocate an amount equal to 70 percent of salaries paid to 
essential personnel in that intermediate district or cooperative 
minus the amount of state aid and any federal aid, if 
applicable, paid to that intermediate district or cooperative 
for salaries of these essential personnel under sections 124.32, 
subdivisions 1b and 10 and 124.574, subdivision 2b, plus 65 
percent of salaries paid to essential personnel in that 
intermediate district or cooperative minus the amount of state 
aid and any federal aid, if applicable, paid to that 
intermediate district or cooperative for salaries of these 
essential personnel under section 124.273, subdivision 1b for 
the year to each of the member districts of the cooperative or 
the intermediate district.  The member districts may make a levy 
in the amount of the costs allocated to them by the cooperative 
or intermediate district.  
    Special education cooperatives and intermediate school 
districts that allocate unreimbursed portions of salaries of 
special education essential personnel among member districts, 
for purposes of the member districts making a levy under this 
subdivision, shall provide information to the state department 
of education on the amount of unreimbursed costs of salaries 
they allocated to the member districts. 
    Sec. 20.  [SPECIAL EDUCATION LEVY, 1985.] 
    In addition to the levy authorized in section 19, in 1985 
only, a district, excluding intermediate school district Nos. 
287, 916, and 917, may levy an amount that may not exceed 70 
percent of salaries paid to essential personnel in that district 
in fiscal year 1986, minus the amount of state aid and any 
federal aid, if applicable, paid to that district for salaries 
of these essential personnel under sections 124.32, subdivisions 
1b and 10 and 124.574, subdivision 2b plus 65 percent of 
salaries paid to essential personnel in that district in fiscal 
year 1986, minus the amount of state aid and any federal aid, if 
applicable, paid to that district for salaries of these 
essential personnel under section 124.273, subdivision 1b for 
fiscal year 1986. 
    For purposes of this subdivision, a special education 
cooperative or an intermediate school district shall allocate an 
amount equal to 70 percent of salaries paid to essential 
personnel in that intermediate district or cooperative in fiscal 
year 1986, minus the amount of state aid and any federal aid, if 
applicable, paid to that intermediate district or cooperative 
for salaries of these essential personnel under sections 124.32, 
subdivisions 1b and 10 and 124.574, subdivision 2b, plus 65 
percent of salaries paid to essential personnel in that 
intermediate district or cooperative in fiscal year 1986, minus 
the amount of state aid and any federal aid, if applicable, paid 
to that intermediate district or cooperative for salaries of 
these essential personnel under section 124.273, subdivision 1b 
for fiscal year 1986 to each of the member districts of the 
cooperative or the intermediate school district.  In 1985 the 
member districts may make a levy in the amount of the estimated 
costs allocated to them by the intermediate district or 
cooperative.  
    Special education cooperatives and intermediate school 
districts that allocate unreimbursed portions of salaries of 
special education essential personnel among member districts, 
for purposes of the member districts making a levy under this 
subdivision, shall provide information to the state department 
of education on the amount of unreimbursed costs of salaries 
they allocated to the member districts. 
    Sec. 21.  [OCCUPATIONAL THERAPY STUDY.] 
    By February 1, 1986, the department of education shall 
conduct a study and make recommendations to the house and senate 
education committees, house education finance division, and 
senate education aids subcommittee on the fiscal impact and 
educational effectiveness of providing state aid for 
occupational therapy in special education programs. 
    Sec. 22.  [COLLECTION OF INFORMATION AND DATA.] 
    For fiscal years 1986 through 1988, the departments of 
health, education, and human services shall collect information 
and data, at each age level, on the revenues and expenditures 
for serving handicapped children under age five and their 
families.  The department of education data shall be collected 
using the uniform financial accounting and reporting system. 
    Sec. 23.  [HANDICAPPED CHILDREN REPORT.] 
    By December 1, 1985, the interagency early learning 
committees established according to section 7 shall report to 
the commissioner of education on the progress of the committees 
and any recommendations for developing a coordinated delivery 
system.  By February 1, 1986, the commissioner of education 
shall report to the education committees of the legislature on 
the results and recommendations of the interagency early 
learning committees and the federally funded interagency 
planning project to examine the development of a comprehensive 
service delivery system to handicapped children under the age of 
five in the state.  The report shall include recommendations on 
defining handicapped children under the age of five, including 
handicapped children under the age of four who are 
developmentally delayed but for whom a primary disability cannot 
be determined, for the purpose of determining eligibility for 
special instruction and services.  The commissioner of education 
shall consult with the commissioners of health and human 
services in developing recommendations for a delivery system and 
a proposed definition of handicapped children under the age of 
five. 
    Sec. 24.  [1986 LEGISLATURE.] The 1986 legislature shall 
consider the feasibility of establishing and funding a 
comprehensive delivery system for providing services to 
handicapped children under age three and their families, based 
on the recommendations of the report required in section 23. 
    Sec. 25.  [TIMING FOR LICENSURE OF CERTAIN PERSONNEL.] 
    Notwithstanding any law to the contrary, the board of 
teaching shall allow employees of developmental achievement 
centers three years to meet the licensure requirements.  This 
section shall apply only to personnel employed on the effective 
date of this act. 
    Sec. 26.  [SPECIAL EDUCATION REPORT.] 
    The department of education shall prepare (1) guidelines 
for pre-referral to special education, (2) criteria for 
determining the presence of a specific learning disability or an 
emotional/behavioral disorder as handicapping conditions, and 
(3) entrance and exit criteria for specific learning disability 
and emotional/behavioral disorder programs in school districts.  
The department shall report the guidelines and criteria and its 
recommendations to the education committees of the legislature 
by January 15, 1986. 
    Sec. 27.  [REPORT TO LEGISLATURE ABOUT TRANSITION.] 
    The commissioner of education shall report to the 
legislature about the transition of handicapped pupils from 
school to post-secondary training and employment by February 1, 
1987. 
    Sec. 28.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid there is appropriated:  
    $137,986,300.....1986, 
    $142,755,600.....1987.  
    The appropriation for 1986 includes $20,719,600 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $117,266,700 
for aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $21,082,300 for aid for 
fiscal year 1986 payable in fiscal year 1987 and $121,673,300 
for aid for fiscal year 1987, payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$137,960,800 for fiscal year 1986 and $143,145,000 for fiscal 
year 1987. 
    Subd. 3.  [SUMMER SCHOOL SPECIAL EDUCATION AID.] For 
special education aid for summer school programs there is 
appropriated:  
    $4,239,200.....1986, 
    $4,052,500.....1987. 
    The appropriation for 1986 is for 1985 summer school 
programs. 
    The appropriation for 1987 is for 1986 summer school 
programs. 
    Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
teacher travel for home-based services for handicapped children 
under age five and their families there is appropriated: 
    $198,600.....1987. 
    The appropriation is based on aid entitlement of $536,400. 
    Subd. 5.  [RESIDENTIAL FACILITIES AID.] For aid pursuant to 
section 124.32, subdivision 5, there is appropriated: 
    $1,347,000.....1986, 
    $1,400,900.....1987. 
    Subd. 6.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
For aid to educational programs for pupils of limited English 
proficiency pursuant to section 124.273 there is appropriated:  
    $2,713,800.....1986, 
    $2,843,900.....1987. 
    The appropriation for 1986 includes $431,200 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $2,282,600 for 
aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $402,900 for aid for 
fiscal year 1986 payable in fiscal year 1987 and $2,441,000 for 
aid for fiscal year 1987, payable in fiscal year 1987.  
    The appropriations are based on aid entitlements of 
$2,685,500 for fiscal year 1986 and $2,871,700 for fiscal year 
1987. 
    Subd. 7.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAM 
AID.] For grants to American Indian language and culture 
education programs pursuant to section 126.54, subdivision 1, 
there is appropriated: 
    $585,200.....1986, 
    $588,300.....1987. 
    The appropriation for 1986 includes $85,200 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $500,000 for 
aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $88,300 for aid for 
fiscal year 1986 payable in fiscal year 1987 and $500,000 for 
aid for fiscal year 1987, payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$588,300 for fiscal year 1986 and $588,300 for fiscal year 1987. 
    Subd. 8.  [HEARING IMPAIRED SUPPORT SERVICES AID.] For 
payment of support services for hearing impaired persons 
pursuant to section 121.201 there is appropriated: 
    $65,000.....1986, 
    $30,000.....1987. 
    The appropriations are based on aid entitlements of $65,000 
for fiscal year 1986 and $30,000 for fiscal year 1987.  $5,000 
of the appropriation for fiscal year 1986 shall be used by the 
department of education to conduct a study on hearing impaired 
support services.  
    Subd. 9.  [SECONDARY VOCATIONAL HANDICAPPED.] For aid for 
secondary vocational education for handicapped pupils according 
to section 124.574, there is appropriated:  
    $3,534,000.....1986, 
    $3,606,300.....1987.  
    The appropriation for 1986 includes $551,700 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $2,982,300 for 
aid for fiscal year 1986 payable in fiscal year 1986.  This 
appropriation is based on the assumption that the state will 
spend for this purpose an amount at least equal to $230,000 in 
fiscal year 1986 of federal money received for vocational 
education programs pursuant to the vocational education act of 
1963, as amended. 
    The appropriation for 1987 includes $526,300 for aid for 
fiscal year 1986 payable in fiscal year 1987, and $3,080,000 for 
aid for 1987 payable in fiscal year 1987.  This appropriation is 
based on the assumption that the state will spend for this 
purpose an amount at least equal to $230,000 in fiscal year 1987 
of federal money received for vocational education programs 
pursuant to the vocational education act of 1963, as amended. 
    The appropriations are based on aid entitlements of 
$3,508,600 for fiscal year 1986 and $3,623,500 for fiscal year 
1987. 
    Subd. 10.  [OFFICE ON TRANSITION SERVICES.] For the 
interagency office on transition services there is appropriated: 
    $75,000.....1986, 
    $85,000.....1987. 
    Subd. 11.  [PRORATION.] Except as provided in Minnesota 
Statutes, section 124.14, subdivision 7, none of the amounts 
appropriated in this section shall be expended for a purpose 
other than the purpose indicated.  If the appropriation amount 
attributable to either year for the purpose indicated plus the 
amount of any transfers made according to Minnesota Statutes, 
section 124.14, subdivision 7, is insufficient, the aid for that 
year shall be prorated among all qualifying districts and the 
state shall not be obligated for any additional amount for these 
purposes.  
    Sec. 29.  [APPROPRIATIONS FOR DEFICIENCIES.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years indicated for the payment of deficiencies in funds 
available for the purposes indicated.  These sums shall be added 
to the sums appropriated for fiscal year 1985 for the same 
purposes. 
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid deficiency there is appropriated: 
    $15,396,200.....1985. 
    Of this amount, $3,295,900 is for aid for fiscal year 1984 
payable in fiscal year 1985, and $12,100,300 is for aid for 
fiscal year 1985 payable in fiscal year 1985. 
    Subd. 3.  [HEARING IMPAIRED SUPPORT SERVICES AID.] For 
support services for hearing impaired people according to 
section 121.201 there is appropriated: 
    $15,000.....1985. 
    Subd. 4.  [SECONDARY VOCATIONAL PROGRAMS FOR HANDICAPPED 
CHILDREN.] For payments according to section 124.574 there is 
appropriated: 
    $1,327,600...1985. 
     Of this amount, $505,600 is for aid for fiscal year 1984 
payable in fiscal year 1985, and $822,000 is for aid for fiscal 
year 1985 payable in fiscal year 1985.  
    Sec. 30.  [REPEALER.] 
    Minnesota Statutes 1984, sections 120.03, subdivisions 2, 
3, and 4; 120.17, subdivision 1a; 120.172, subdivision 3; and 
124.32, subdivision 9a, are repealed. 
    Sec. 31.  [EFFECTIVE DATE.] 
    Sections 7, 8, and 29 are effective the day following final 
enactment.  Sections 2, 3, 5, 6 and 14 are effective for the 
1986-1987 school year and thereafter. 

                               ARTICLE 4 

                     COMMUNITY AND ADULT EDUCATION 
    Section 1.  Minnesota Statutes 1984, section 121.88, is 
amended to read: 
    121.88 [DISTRICT COMMUNITY EDUCATION PROGRAMS; CITIZENS 
ADVISORY COUNCIL.] 
    Subdivision 1.  [AUTHORIZATION.] The board of education of 
Each school district of the state is hereby authorized to board 
may initiate a community education program in its district and 
to provide for the general supervision of said the program.  
Each board may, as it considers appropriate, employ community 
education directors and coordinators to further the purposes of 
the community education program.  The salaries of the directors 
and coordinators shall be paid by the board. 
    Subd. 2.  [ADVISORY COUNCIL.] Each board shall provide for 
a citizens an advisory council to consist of members who 
represent:  the various service organizations; churches; private 
schools; local government; park, recreation or forestry services 
of municipal or local government units located in whole or in 
part within the boundaries of the school district; and any other 
groups participating in the community education program in the 
school district. 
    Subd. 3.  [COOPERATION.] The council shall function in 
cooperation with the community education director in an advisory 
capacity in the interest of promoting the goals and objectives 
of sections 121.85 to 121.88. 
    Subd. 4.  [DUPLICATION POLICY.] Each council shall adopt a 
policy to reduce and eliminate program duplication within the 
district. 
    Subd. 5.  [SUMMER SCHOOL PROGRAMS.] Notwithstanding any law 
to the contrary, during the summer a school district may offer 
community education programs to elementary and secondary 
pupils.  The district may use community education revenue 
received pursuant to sections 124.271 and 275.125, subdivision 8 
and charge fees for the cost of the programs.  
     Subd. 6.  [PROGRAMS FOR HANDICAPPED ADULTS.] A school board 
may offer, as part of a community education program, a program 
for handicapped adults.  Boards are encouraged to offer programs 
cooperatively with other districts and organizations.  Programs 
may not be limited to district residents.  Programs may include: 
    (1) services enabling the adults to participate in 
community activities or community education classes; 
    (2) classes specifically for handicapped adults; 
    (3) outreach activities to identify adults needing service; 
    (4) activities to increase public awareness of the roles of 
handicapped people; 
    (5) activities to enhance the role of handicapped people in 
the community; and 
    (6) other direct and indirect services and activities 
benefitting handicapped adults.  
    Subd. 7.  [PROGRAM APPROVAL.] To be eligible for 
handicapped adult program revenue, a program and budget must 
receive approval from the community education section in the 
department of education.  Approval may be for one or two years. 
For programs offered cooperatively, the request for approval 
must include an agreement on the method by which local money is 
to be derived and distributed.  The department may not exceed 
the amount appropriated when approving programs and budgets.  A 
request for approval must include all of the following:  
    (1) characteristics of the people to be served; 
    (2) description of the program services and activities; 
    (3) program budget and amount of aid requested; 
    (4) participation by handicapped adults in developing the 
program; 
    (5) assessment of the needs of handicapped adults; and 
    (6) cooperative efforts with community organizations. 
    Sec. 2.  Minnesota Statutes 1984, section 121.882, is 
amended to read: 
    121.882 [EARLY CHILDHOOD AND FAMILY EDUCATION PROGRAMS.] 
    Subdivision 1.  [ESTABLISHMENT.] A district that provides a 
community education program may establish an early childhood and 
family education program.  Two or more districts, each of which 
provides a community education program, may cooperate to jointly 
provide an early childhood and family education program.  
    Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood and 
family education programs are programs for children in the 
period of life from birth to kindergarten and, for the parents 
of such children, and for expectant parents.  The programs may 
include the following:  
    (1) programs to educate parents about the physical, mental, 
and emotional development of children;  
    (2) programs to enhance the skills of parents in providing 
for their children's learning and development;  
    (3) learning experiences for children and parents;  
    (4) activities designed to detect children's physical, 
mental, emotional, or behavioral problems that may cause 
learning problems;  
    (5) educational materials which may be borrowed for home 
use;  
    (6) information on related community resources; or 
    (7) other programs or activities.  
    The programs shall not include activities for children that 
do not require substantial involvement of the children's 
parents.  The programs shall be reviewed periodically to assure 
the instruction and materials are not racially, culturally, or 
sexually biased.  The programs shall encourage parents to be 
aware of practices that may affect equitable development of 
children. 
    Subd. 2a.  [SUBSTANTIAL PARENTAL INVOLVEMENT.] The 
requirement of substantial parental involvement in subdivision 2 
means that: 
    (a) parents must be physically present much of the time in 
classes with their children or be in concurrent classes; 
    (b) parenting education or family education must be an 
integral part of every early childhood family education program; 
    (c) early childhood family education appropriations must 
not be used for traditional day care or nursery school, or 
similar programs; and 
    (d) the form of parent involvement common to kindergarten, 
elementary school, or early childhood special education programs 
such as parent conferences, newsletters, and notes to parents do 
not qualify a program under subdivision 2. 
    Subd. 3.  [SEPARATE ACCOUNTS.] The district shall maintain 
a separate account within the community education fund for money 
for early childhood and family education programs.  
    Subd. 4.  [PARTICIPANTS' FEES.] A district may charge a 
reasonable fee but it shall waive the fee for a participant 
unable to pay.  
    Subd. 5.  [ADDITIONAL FUNDING.] A district may receive 
funds from any governmental agency or private source.  
    Subd. 6.  [COORDINATION.] A district is encouraged to 
coordinate the program with its special education and vocational 
education programs and with related services provided by other 
governmental agencies and nonprofit agencies.  
    Subd. 7.  [DISTRICT ADVISORY COUNCILS.] The school board 
shall appoint an advisory council from the area in which the 
program is provided.  A majority of the council shall be parents 
participating in the program.  The council shall assist the 
board in developing, planning, and monitoring the early 
childhood and family education program.  The council shall 
report to the school board and the community education advisory 
council.  
    Subd. 8.  [TEACHERS.] A school board shall employ necessary 
qualified teachers for its early childhood and family education 
programs.  
    Subd. 9.  [ASSISTANCE.] The department of education shall 
provide assistance to districts with programs described in this 
section.  
    Subd. 10.  [RULES.] The state board of education may adopt 
rules about program facilities, staff, services, and procedures. 
    Sec. 3.  Minnesota Statutes 1984, section 124.26, is amended to 
read: 
    Subdivision 1.  [COMPENSATION.] For evening schools adult 
basic and continuing education programs, the state shall pay 
aids only for programs approved by the commissioner of 
education.  The total aid for all programs approved by the 
commissioner shall not exceed the amount appropriated for this 
purpose.  The aid shall be paid on a current funding basis.  
Except For the 1982-1983 1984-1985 school year, aid shall be 90 
percent of the compensation paid each teacher for services in 
the programs up to $8,000 per year as approved in the current 
year application.  Aid may also be paid for an alternative 
method of providing programs if the method is determined by the 
commissioner of education to be cost-effective.  Not more than 
two and one-half percent of the amount appropriated for evening 
schools adult basic and continuing education programs may be for 
alternative programs.  
    Beginning in the 1985-1986 school year, aid shall be 75 
percent of the salary paid to each adult education teacher, 
coordinator of volunteers, and nonlicensed instructional staff 
person; and 75 percent of expenditures for benefits, purchased 
services, and supplies and materials if the expenditures have 
been approved by the commissioner.  Expenditures for which the 
district receives federal aid shall not qualify for state aid.  
All classes and other learning options shall be tuition free 
when taught by teachers subsidized under this section.  No 
charge for registration, materials and supplies may be made 
except a security deposit for the return of materials, supplies, 
and equipment.  Evening school Adult basic and continuing 
education programs are defined as those public day or evening 
school programs which are established for persons over 16 years 
of age not in attendance at the full time elementary or 
secondary schools and which qualify such persons for the high 
school diploma, the high school equivalency certificate or for 
academic achievement at the secondary level. 
    Subd. 2.  Each district or group of districts 
providing evening school adult basic and continuing education 
programs shall establish and maintain accounts separate from all 
other district accounts for the receipt and disbursement of all 
funds related to these programs.  All aid received pursuant to 
this section shall be utilized solely for the purposes 
of evening school adult basic and continuing education 
programs.  In no case shall a district pursuant to this section 
receive federal and state aid equal more than 90 percent of the 
actual cost of providing these programs. 
    Subd. 6.  [APPLICATIONS; PRORATION.] By August 1 of each 
fiscal year, the commissioner shall approve or disapprove all 
applications for funding for that year pursuant to subdivision 1 
under this section that were received by the preceding June 1, 
and shall notify the applicant districts of the decision.  In 
any fiscal year when the total amount requested by districts for 
approved programs exceeds the amount appropriated, the 
commissioner shall, to the extent possible, fully fund the 
programs which were approved by August 1, and shall prorate any 
remaining funds among programs which are approved after August 1.
    Sec. 4.  Minnesota Statutes 1984, section 124.271, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [AID; 1985, 1986, 1987 AND AFTER.] (1) Each 
fiscal year a district which is operating a community education 
program in compliance with rules promulgated by the state board 
shall receive community education aid.  For fiscal year 1985, 
the aid shall be an amount equal to the difference obtained by 
subtracting 
    (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
    (i) $7,000, or 
    (ii) $5 times the population of the district.  
    For fiscal year 1986 and each fiscal year thereafter, the 
aid shall be an amount equal to the difference obtained by 
subtracting 
    (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
    (i) $7,000, or 
    (ii) $5.25 times the population of the district.  
     For fiscal year 1987 and each year thereafter, the aid 
shall be an amount equal to the difference obtained by 
subtracting 
     (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
     $7,140, or 
     $5.35 times the population of the district. 
    (2) However, for any district which certifies less than the 
maximum permissible levy under the provisions of section 
275.125, subdivision 8, clause (1), the district's community 
education aid under clause (1) of this subdivision shall be 
reduced by multiplying the aid amount computed pursuant to 
clause (1) of this subdivision by the ratio of the district's 
actual levy under section 275.125, subdivision 8, clause (1), to 
its maximum permissible levy under section 275.125, subdivision 
8, clause (1).  For purposes of computing the aid reduction 
pursuant to this clause, the amount certified pursuant to 
section 275.125, subdivision 8, clause (1), shall not reflect 
reductions made pursuant to section 275.125, subdivision 9.  
    (3) In addition to the amount in clause (1), in fiscal year 
1985 a district which makes a levy for community education 
programs pursuant to section 275.125, subdivision 8, shall 
receive additional aid of 50 cents per capita.  
    Sec. 5.  Minnesota Statutes 1984, section 124.271, is 
amended by adding a subdivision to read:  
    Subd. 7.  [HANDICAPPED ADULT PROGRAM AID.] A district or 
group of districts offering an approved program for handicapped 
adults shall receive aid equal to the lesser of $25,000 or 
one-half of the amount of the approved budget.  A district or 
group of districts shall provide the remaining half from other 
public or private sources, the levy authorized in section 
275.125, subdivision 8, clause (4), or combinations of sources. 
    Sec. 6.  Minnesota Statutes 1984, section 124.2711, is 
amended to read: 
    124.2711 [EARLY CHILDHOOD AND FAMILY EDUCATION AID.] 
    Subdivision 1.  [DEFINITION OF MAXIMUM REVENUE.] Beginning 
For fiscal year 1986 and each year thereafter the "maximum 
revenue" for early childhood and family education programs for a 
school year means the amount of revenue equal to the product of 
five percent of the foundation aid formula allowance for the 
current school year, times the greater of (a) 150, or (b) the 
number of people under five years of age residing in the 
district on September 1 of the preceding school year.  For 
fiscal year 1987 and each year thereafter, the "maximum revenue" 
for early childhood family education programs for a school year 
means the amount of revenue equal to the product of five percent 
of the foundation aid formula allowance for the prior school 
year, times the greater of (a) 150, or (b) the number of people 
under five years of age residing in the district on September 1 
of the preceding school year. 
    Subd. 2.  [POPULATION.] For the purposes of subdivision 1, 
data reported to the department of education according to the 
provisions of section 120.095 may be used to determine the 
number of people under five years of age residing in the 
district.  The commissioner, with the assistance of the state 
demographer, shall review the number reported by any district 
operating an early childhood and family education program.  If 
requested, the district shall submit to the commissioner an 
explanation of its methods and other information necessary to 
document accuracy.  If the commissioner determines that the 
district has not provided sufficient documentation of accuracy, 
the commissioner may request the state demographer to prepare an 
estimate of the number of people under five years of age 
residing in the district and may use this estimate for the 
purposes of subdivision 1.  
    Subd. 3.  [AID.] In fiscal year 1986 and thereafter, If a 
district complies with the provisions of section 121.882, it 
shall receive early childhood and family education aid equal to: 
    (a) the difference between the maximum revenue, according 
to subdivision 1, and the permitted levy attributable to the 
same school year, according to section 275.125, subdivision 8b, 
times 
    (b) the ratio of the district's actual levy to its 
permitted levy attributable to the same school year, according 
to section 275.125, subdivision 8b.  
    Subd. 4.  [USE OF REVENUE RESTRICTED.] The proceeds of the 
aid authorized by this section and the levy authorized by 
section 275.125, subdivision 8b, shall be used only for early 
childhood and family education programs.  
    Sec. 7.  Minnesota Statutes 1984, section 275.125, 
subdivision 8, is amended to read: 
    Subd. 8.  [COMMUNITY EDUCATION LEVY.] (1) Each year, a 
district which has established a community education advisory 
council pursuant to section 121.88, may levy the amount raised 
by .8 mill times the most recent adjusted assessed valuation of 
the district, but no more than the greater of 
    (a) $5.25 $5.35 times the population of the district, or 
    (b) $7,000 $7,140.  
    (2) In addition to the levy authorized in clause (1), in 
1983 a district may levy an additional amount for community 
education programs equal to the difference obtained by 
subtracting 
    (a) the sum in fiscal year 1984 of 
    (i) the district's estimated maximum permissible revenue 
for fiscal year 1985 from community education aid under section 
124.271, subdivision 2b, clause (1), and 
    (ii) the community education levy authorized in clause (1) 
of this subdivision, from 
    (b) the sum in fiscal year 1983 of 
    (i) the district's maximum permissible revenue from 
community education aid under Minnesota Statutes 1984, section 
124.271, subdivision 2, excluding any reductions from community 
education aid made pursuant to Laws 1981, Third Special Session 
chapter 2, article 2, section 2, clause (mm), and Laws 1982, 
Third Special Session chapter 1, article 3, section 6, and 
    (ii) the maximum community education levy authorized in 
this subdivision for the district for the levy made in 1981, 
payable in 1982, before any reduction in the levy pursuant to 
subdivision 9.  
    (3) In 1984 and Each year thereafter, in addition to the 
levy authorized in clause (1), a district may levy an amount 
equal to the amount the district was entitled to levy pursuant 
to clause (2) in 1983. 
    (4) In addition to the levy amounts authorized in this 
subdivision, a district having an approved program and budget 
may levy for a handicapped adult program.  The levy amount may 
not exceed the lesser of one-half of the amount of the approved 
budget for the program for the fiscal year beginning in the 
calendar year after the levy is certified or $25,000 for one 
program.  In the case of a program offered by a group of 
districts, the levy amount shall be divided among the districts 
according to the agreement submitted to the department.  The 
proceeds of the levy shall be used only for a handicapped adult 
program or, if the program is subsequently not offered, for 
community education programs.  For programs not offered, the 
department of education shall reduce the community education 
levy by the amount levied the previous year for handicapped 
adult programs. 
    (5) The levies authorized in this subdivision shall be used 
for community education, including nonvocational adult programs, 
recreation and leisure time activity programs, and programs 
authorized by sections 121.85 to 121.88 and 129B.06 to 129B.09, 
and section 121.882.  A school district may levy pursuant to 
this subdivision only after it has filed a certificate of 
compliance with the commissioner of education.  The certificate 
of compliance shall certify that the governing boards of the 
county, municipality and township in which the school district 
or any part thereof is located have been sent 15 working days 
written notice of a meeting and that a meeting has been held to 
discuss methods of increasing mutual cooperation between such 
bodies and the school board.  The failure of a governing board 
of a county, municipality or township to attend the meeting 
shall not affect the authority of the school district to levy 
pursuant to this subdivision. 
    (5) (6) The population of the district for purposes of this 
subdivision is the population determined as provided in section 
275.14 or as certified by the department of education from the 
most recent federal census. 
    Sec. 8.  Minnesota Statutes 1984, section 275.125, 
subdivision 8b, is amended to read: 
    Subd. 8b.  [EARLY CHILDHOOD AND FAMILY EDUCATION LEVY.] A 
district may levy for its early childhood and family education 
program.  The amount levied shall not exceed the lesser of:  
    (a) .4 .5 mill times the adjusted assessed valuation of the 
district for the year preceding the year the levy is certified, 
or 
    (b) the maximum revenue as defined in section 124.2711, 
subdivision 1, for the school year for which the levy is 
attributable. 
    Sec. 9.  [1985 LEVY FOR HANDICAPPED ADULT PROGRAMS.] 
    In addition to the levy authorized in Minnesota Statutes, 
section 275.125, subdivision 8, clause (4), a district may levy 
in 1985 for a handicapped adult program for fiscal year 1986 
according to this section.  The additional levy amount shall not 
exceed the lesser of one-half of the program budget or $25,000.  
In the case of a program offered by a group of districts, the 
levy amount shall be divided among the districts according to 
their agreement.  The proceeds of the levy shall be used only 
for a handicapped adult program or, if the program is 
subsequently not offered, for community education programs.  For 
programs not offered, the department of education shall reduce 
the community education levy authorized in 1986 by the amount 
levied in 1985 for handicapped adult programs.  
    Sec. 10.  [EVALUATION OF EARLY CHILDHOOD FAMILY EDUCATION.] 
     By March 1, 1986, the department of education shall report 
to the education committees of the legislature on a plan for 
evaluation of early childhood family education programs.  The 
report shall include at least the following: 
     (1) a summary of conclusions from past evaluations of the 
pilot early childhood family education prgrams administered by 
the council on quality education; 
     (2) a list of characteristics of successful programs; 
     (3) information on the number of districts implementing 
programs in the 1985-1986 school year, the extent of 
participation in the programs, the involvement of local advisory 
councils in the programs, administration by the department, and 
interdistrict cooperation in providing programs where applicable;
     (4) a plan to assist districts in self-evaluation of 
programs; 
     (5) a plan for the collection and compilation of 
information that would be useful for monitoring and evaluation 
of programs; and 
     (6) a plan for a systematic long-term evaluation of the 
quality and cost-effectiveness of the programs. 
    Sec. 11.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [ADULT EDUCATION AID.] For adult education aid 
according to section 124.26 there is appropriated: 
    $1,815,900.....1986, 
    $1,845,000.....1987. 
    The amount appropriated for fiscal year 1986 includes 
$285,900 for aid for fiscal year 1985 payable in fiscal year 
1986, and $1,530,000 for aid for fiscal year 1986 payable in 
fiscal year 1986. 
    The amount appropriated for fiscal year 1987 includes 
$270,000 for aid for fiscal year 1986 payable in fiscal year 
1987, and $1,575,000 for aid for fiscal year 1987 payable in 
fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$1,800,000 for fiscal year 1986 and $1,853,000 for fiscal year 
1987. 
    Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
education aid according to section 124.271 there is appropriated:
    $1,671,800.....1986, 
    $1,693,900.....1987. 
    The amount appropriated for fiscal year 1986 includes 
$424,200 for aid for fiscal year 1985 payable in fiscal year 
1986, and $1,247,600 for aid for fiscal year 1986 payable in 
fiscal year 1986. 
    The amount appropriated for fiscal year 1987 includes 
$220,200 for aid for fiscal year 1986 payable in fiscal year 
1987, and $1,473,700 for aid for fiscal year 1987 payable in 
fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$1,467,800 for fiscal year 1986 and $1,733,800 for fiscal year 
1987. 
    Subd. 4.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
childhood family education aid according to section 124.2711 
there is appropriated: 
    $5,245,100.....1986, 
    $6,028,600.....1987. 
    The appropriation for 1986 is for aid for fiscal year 1986 
payable in fiscal year 1986. 
    The appropriation for 1987 includes $925,600 for aid for 
fiscal year 1986 payable in fiscal year 1987, and $5,103,000 for 
aid for fiscal year 1987 payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$6,170,700 for fiscal year 1986 and $6,003,500 for fiscal year 
1987. 
    Subd. 5.  [ADULT HANDICAPPED PROGRAM AID.] For aid for 
handicapped adult programs according to section 124.271 there is 
appropriated: 
    $250,000.....1986, 
    $350,000.....1987. 
    Of the amount appropriated in fiscal year 1987, $100,000 
shall be for new programs beginning in that year. 
    The appropriations are based on aid entitlements of 
$250,000 for fiscal year 1986 and $350,000 for fiscal year 1987. 
    Subd. 6.  [DEPARTMENT ASSISTANCE FOR EARLY CHILDHOOD FAMILY 
EDUCATION.] For the department to provide assistance to 
districts in planning, implementing, and evaluating early 
childhood family education programs there is appropriated: 
    $35,000.....1986, 
    $35,000.....1987. 
    The department shall use the appropriation for personnel 
service contracts and expenses of conferences and workshops. 
    Subd. 7.  [PRORATION.] Except as provided in section 
124.14, subdivision 7, none of the amounts appropriated in this 
section shall be expended for a purpose other than the purpose 
indicated.  If the appropriation amount attributable to either 
year for the purpose indicated plus the amount of any transfers 
made according to section 124.14, subdivision 7, is 
insufficient, the aid for that year shall be prorated among all 
qualifying districts, and the state shall not be obligated for 
any additional amount for these purposes. 
    Sec. 12.  [APPROPRIATION FOR DEFICIENCY.] 
    There is appropriated from the general fund to the 
department of education the sum of $399,600 for fiscal year 1985 
for the payment of a deficiency in funds available for the 
payment of adult education aid in that fiscal year.  This sum 
shall be added to the sum appropriated for fiscal year 1985 for 
this purpose in Laws 1983, chapter 314, article 4, section 11, 
subdivision 2.  
    Sec. 13.  [REPEALER.] 
    Minnesota Statutes 1984, sections 124.271, subdivisions 2, 
2a, and 2c, and 129B.03 are repealed. 
    Sec. 14.  [EFFECTIVE DATE.] 
    Section 12 is effective the day following final enactment. 

                               ARTICLE 5 

                          ACCESS TO EXCELLENCE 
    Section 1.  [123.3514] [POST-SECONDARY ENROLLMENT OPTIONS 
ACT.] 
    Subdivision 1.  [CITATION.] This section may be cited as 
the "post-secondary enrollment options act." 
    Subd. 2.  [PURPOSE.] The purpose of this section is to 
promote rigorous academic pursuits and to provide a wider 
variety of options to high school pupils by encouraging and 
enabling secondary pupils to enroll full-time or part-time in 
nonsectarian courses or programs in eligible post-secondary 
institutions, as defined in subdivision 3. 
    Subd. 3.  [ELIGIBLE POST-SECONDARY INSTITUTIONS.] For 
purposes of this section, an "eligible institution" means a 
Minnesota public post-secondary institution or a private, 
residential, four-year, liberal arts, degree-granting college or 
university located in Minnesota. 
    Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
any other law to the contrary, an 11th or 12th grade pupil may 
apply to an eligible institution, as defined in subdivision 3, 
to allow the pupil to enroll in nonsectarian courses or programs 
offered at that post-secondary institution.  If an institution 
accepts a secondary pupil for enrollment under this section, the 
institution shall send written notice to the pupil, the pupil's 
school district, and the commissioner of education within ten 
days of acceptance.  The notice shall indicate the course or 
programs and hours of enrollment of that pupil.  
    Subd. 5.  [CREDITS.] A school district shall grant academic 
credit to a pupil enrolled in a course or program under this 
section if the pupil successfully completes the course or 
program attended.  If no comparable course or program is offered 
by the district, the state board of education shall determine 
the number of credits that shall be granted to a pupil who 
successfully completes and passes the course or program.  If a 
comparable course or program is offered by the district, the 
school board shall grant a comparable number of credits to the 
pupil.  If there is a dispute between the district and the pupil 
regarding the number of credits granted for a particular course 
or program, the pupil may appeal the school board's decision to 
the state board of education.  The state board's decision 
regarding the number of credits shall be final.  
    The credits granted to a pupil shall be counted toward the 
graduation requirements and subject area requirements of the 
school district.  Evidence of successful completion of each 
course or program and credits granted shall be included in the 
pupil's secondary school record.  
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] At the end of each 
school year, the department of education shall pay the tuition 
reimbursement amount within 30 days to the post-secondary 
institutions that enroll pupils under this section.  The amount 
of tuition reimbursement shall equal the lesser of: 
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course or program charged for the 
secondary pupil enrolling in a course or program under this 
section; or 
    (2) an amount equal to the difference between the formula 
allowance plus the total tier revenue attributable to that pupil 
and an amount computed by multiplying the formula allowance plus 
the total tier revenue attributable to that pupil by a ratio.  
The ratio to be used is the total number of hours that the pupil 
is enrolled in courses in the secondary school during the 
regular school year over the total number of secondary 
instructional hours in that pupil's resident district. 
    The amount paid for each pupil shall be subtracted from the 
foundation aid paid to the pupil's resident district.  If the 
amount to be subtracted is greater than the amount of foundation 
aid due the district, the excess reduction shall be made from 
other state aids due to the district. 
    Subd. 7.  [FEES; TEXTBOOKS; MATERIALS.] A post-secondary 
institution that receives reimbursement for a pupil under 
subdivision 6 may not charge that pupil for fees, textbooks, 
materials, or other necessary costs of the course or program in 
which the pupil is enrolled if the charge would be prohibited 
under section 120.74, except for equipment purchased by the 
pupil that becomes the property of the pupil. 
    Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
attending a post-secondary institution under this section may 
apply to the pupil's district of residence for reimbursement for 
transporting the pupil between the secondary school in which the 
pupil is enrolled and the post-secondary institution that the 
pupil attends.  The state board of education shall establish 
guidelines for providing state aid to districts to reimburse the 
parent or guardian for the necessary transportation costs, which 
shall be based on financial need.  The state shall pay aid to 
the district according to the guidelines established under this 
subdivision.  Chapter 14 does not apply to the guidelines. 
    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, may not 
enroll in that intermediate district's vocational program as a 
post-secondary pupil under this section. 
    Subd. 10.  [LIMIT; STATE OBLIGATION.] The provisions of 
subdivisions 6, 7, 8, and 9 shall not apply for any 
post-secondary courses or programs in which a pupil is enrolled 
in addition to being enrolled full time in that pupil's district.
    Sec. 2.  [124.275] [ARTS EDUCATION AID.] 
    Subdivision 1.  [PURPOSES.] Each school district shall 
receive arts education aid for arts education programs such as 
creative dramatics, dance, creative writing, music, visual arts, 
and film and video arts.  Districts are encouraged to offer 
cooperative programs and share staff with other districts when 
appropriate to maximize the use of the aid. 
    Subd. 2.  [GUIDELINES.] Each district may determine how to 
use its arts education aid.  A district is encouraged to use the 
following guidelines in the order listed: 
    (1) develop a long-range, comprehensive arts education 
plan, develop an arts curriculum, and implement arts programs 
for grades kindergarten through six; 
    (2) provide professional development for teachers to 
increase their arts skill level and to enable them to provide 
improved opportunities for pupils to learn in, about, and 
through the arts; and 
    (3) provide arts enrichment activities for pupils in grades 
kindergarten through six. 
    (4) increase the number of elementary arts teachers, with a 
goal of at least one full-time art teacher and one full-time 
music teacher for 400 pupils in grades kindergarten to six; 
    Subd. 3.  [AID AMOUNT.] Arts education aid shall equal the 
greater of:  $2.25 times the number of pupils in grades 
kindergarten to six in average daily membership in the district, 
or $1,200. 
    Sec. 3.  Minnesota Statutes 1984, section 129B.17, is 
amended to read: 
    129B.17 [AUTHORIZATION COMPREHENSIVE ARTS PLANNING 
PROGRAM.] 
    The department of education shall prescribe the form and 
manner of application for recipients of by school districts to 
be designated as a site to participate in the comprehensive arts 
in education planning grants program.  Up to 30 sites may be 
selected.  The state board department of education shall award 
grants designate sites in consultation with the Minnesota 
alliance for arts in education and the Minnesota state arts 
board.  
    Sec. 4.  Minnesota Statutes 1984, section 129B.20, is 
amended to read: 
    129B.20 [CRITERIA FOR GRANT APPROVAL COMPREHENSIVE ARTS 
PLANNING PROGRAM SITES.] 
    Subdivision 1.  [FUNDING.] Up to 30 grants of $1,000 each 
may be approved for programs which include:  Each site shall 
receive $1,250 each year for two years.  Before receiving money 
for the second year, a long-range plan for arts education must 
be submitted to the department. 
    Subd. 2.  [CRITERIA.] The department of education, in 
consultation with the Minnesota alliance for arts in education, 
shall establish criteria for site selection.  Criteria shall 
include at least the following:  
    (1) a needs assessment of arts education and planning in 
the school district a willingness by the district to designate a 
program chair for comprehensive arts planning with sufficient 
authority to implement the program;  
    (2) creation of a community-based arts education team of 
eight individuals from the a willingness by the district to 
create a committee comprised of school district and the 
community people whose function will be is to promote 
comprehensive arts education in the school district;  
    (3) participation by commitment on the part of committee 
members of the arts education team to participate in training 
offered by the department of education; and 
    (4) establishment of an evaluation component a commitment 
of the committee to conduct a needs assessment of arts education;
    (5) commitment by the committee to evaluating its 
involvement in the program; 
    (6) a willingness by the district to adopt a long-range 
plan for arts education in the district; 
    (7) no previous involvement of the district in the 
comprehensive arts planning program; and 
    (8) location of the district to assure representation of 
urban, suburban, and rural districts and distribution of sites 
throughout the states. 
    Subd. 3.  [PROGRAM ACCOUNTS.] A district receiving funds 
shall maintain a separate account for the receipt and 
disbursement of all funds relating to the program.  The funds 
shall be spent only for the purpose of arts education programs, 
including teacher release time. 
    Subd. 4.  [ADDITIONAL FUNDING.] A district receiving funds 
may receive funds for the program from private sources and from 
other governmental agencies, including any state or federal 
funds available for arts education. 
    Sec. 5.  Minnesota Statutes 1984, section 129B.21, is 
amended to read: 
    129B.21 [DEPARTMENT RESPONSIBILITY.] 
    The department of education, in cooperation with the 
Minnesota alliance for arts in education and the Minnesota state 
arts board, shall:  
    (1) provide materials, training, and assistance to the arts 
education teams committees in the school districts; 
    (2) provide consultation and technical assistance to 
districts which receive arts in education planning grants; and 
    (3) submit a report to the education committees of the 
senate and house of representatives by January 1, 1985.  The 
report shall include the status and implementation of 
comprehensive arts in education planning grants and the 
department's plans to promote arts education in the schools. The 
department may contract with the Minnesota alliance for arts in 
education for its involvement in providing services, including 
staff assistance, to the program.  
    Sec. 6.  [129C.10] [MINNESOTA SCHOOL OF THE ARTS AND 
RESOURCE CENTER.] 
    Subdivision 1.  [GOVERNANCE.] The board of the Minnesota 
school of the arts and resource center shall consist of 15 
persons.  The members of the board shall be appointed by the 
governor with the advice and consent of the senate.  At least 
one member must be appointed from each congressional district. 
    Subd. 2.  [TERMS, COMPENSATION, AND OTHER.] The membership 
terms, compensation, removal of members, and filling of 
vacancies shall be as provided for in section 15.0575.  A member 
may serve not more than two consecutive terms. 
    Subd. 3.  [POWERS AND DUTIES OF BOARD.] The board has the 
powers necessary for the care, management, and control of the 
Minnesota school of the arts and resource center.  The powers 
shall include, but are not limited to, the following: 
    (1) to employ and discharge necessary employees, and 
contract for other services to ensure the efficient operation of 
the school and resource center; 
    (2) to establish a charitable foundation and accept, in 
trust or otherwise, any gift, grant, bequest, or devise for 
educational purposes and hold, manage, invest, and dispose of 
them and the proceeds and income of them according to the terms 
and conditions of the gift, grant, bequest, or devise and its 
acceptance; 
    (3) to establish or coordinate evening, continuing 
education, extension, and summer programs through the resource 
center for teachers and pupils; 
    (4) to develop and pilot test an interdisciplinary 
education program.  An academic curriculum must be offered with 
special programs in dance, literary arts, media arts, music, 
theater, and visual arts in both the popular and fine arts 
traditions; 
    (5) to determine the location for the Minnesota school of 
the arts and resource center and any additional facilities 
related to the school, including the authority to lease a 
temporary facility; 
    (6) to plan for the enrollment of pupils to ensure 
statewide access and participation; 
    (7) to establish advisory committees as needed to advise 
the board on policies and issues; and 
    (8) to request the commissioner of education for assistance 
and services. 
    Subd. 4.  [EMPLOYEES.] (1) The board shall appoint a 
director of the school of the arts and resource center who shall 
serve in the unclassified service. 
    (2) The board shall employ, upon recommendation of the 
director, a coordinator of the resource center who shall serve 
in the unclassified service. 
    (3) The board shall employ, upon recommendation of the 
director, up to six department chairpersons who shall serve in 
the unclassified service.  The chairpersons shall be licensed 
teachers unless no licensure exists for the subject area or 
discipline for which the chairperson is hired. 
    (4) The board may employ other necessary employees, upon 
recommendation of the director. 
    The employees hired under this subdivision and other 
necessary employees hired by the board shall be state employees 
in the executive branch. 
    Subd. 5.  [RESOURCE CENTER.] Beginning in the 1985-1986 
school year, the resource center shall offer programs that are 
directed at improving arts education in elementary and secondary 
schools throughout the state.  The programs offered shall 
include at least summer institutes offered to pupils in various 
regions of the state, inservice workshops for teachers, and 
leadership development programs for teachers.  The board shall 
establish a resource center advisory council composed of 
elementary and secondary arts educators, representatives from 
post-secondary educational institutions, department of 
education, state arts board, regional arts councils, educational 
cooperative service units, school district administrators, 
parents, and other organizations involved in arts education.  
The advisory council shall include representatives from a 
variety of arts disciplines and from various areas of the 
state.  The advisory council shall advise the board about the 
activities of the center.  Programs offered through the resource 
center shall promote and develop arts education programs offered 
by school districts and arts organizations and shall assist 
school districts and arts organizations in developing innovative 
programs.  The board may contract with nonprofit arts 
organizations to provide programs through the resource center.  
The advisory council shall advise the board on contracts and 
programs related to the operation of the resource center.  
    Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
SPACE.] Public post-secondary institutions shall provide space 
for programs offered by the Minnesota school of the arts and 
resource center at no cost to the Minnesota school of the arts 
and resource center to the extent that space is available at the 
public post-secondary institutions. 
    Sec. 7.  [EVALUATION.] 
    The department of education, in consultation with the 
higher education coordinating board, the public post-secondary 
systems and the participating private colleges, shall collect 
and evaluate information about the implementation of the program 
established under section 1.  By January 15, 1987, the 
commissioner of education shall submit a report to the education 
committees of the legislature on the implementation of this 
program. 
    Sec. 8.  [REPORT.] 
    By February 1 of 1986 and 1987, the board of the school of 
the arts and resource center shall report to the education 
committees of the legislature on the activities of the board, 
activities of the resource center, and the planning for the 
school of the arts.  The 1987 report shall include 
recommendations about continuation of the school of the arts and 
resource center.  
    Sec. 9.  [TIMING FOR ARTS EDUCATION SITES AND AID.] 
    Comprehensive arts planning sites shall be selected by 
November 1, 1985, for the 1985-1986 and 1986-1987 school years. 
Funds for use during the 1985-1986 school year shall be paid by 
January 15, 1986.  Funds for use during the 1986-1987 school 
year shall be paid by August 15, 1986. 
    Sec. 10.  [APPROPRIATIONS TO DEPARTMENT OF EDUCATION.] 
    Subdivision 1.  [TO DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated.  
    Subd. 2.  [COMPREHENSIVE ARTS PLANNING PROGRAMS.] For 
comprehensive arts planning programs there is appropriated: 
    $100,000.....1986, 
    $100,000.....1987. 
    The unencumbered balance remaining from fiscal year 1986 
shall not cancel but shall be available for fiscal year 1987.  
    Subd. 3.  [ARTS EDUCATION AID.] For arts education aid 
there is appropriated:  
    $990,000.....1986, 
    $990,000.....1987. 
    The unencumbered balance remaining from fiscal year 1986 
shall not cancel but shall be available for fiscal year 1987. 
    Subd. 4.  [SCHOOL OF THE ARTS AND RESOURCE CENTER.] For the 
purpose of making a grant to the Minnesota school of the arts 
and resource center there is appropriated: 
     $  491,000.....1986, 
     $2,170,000.....1987. 
    The unencumbered balance remaining from fiscal year 1986 
shall not cancel but shall be available for fiscal year 1987. 
    For fiscal years 1986 and 1987 a complement of 13 is 
authorized for the school of the arts and resource center.  Of 
this complement, eight are in the categories of director, 
coordinator, and department chairs. 
    Subd. 5.  [PRORATION.] Except as provided in Minnesota 
Statutes, section 124.14, subdivision 7, none of the amounts 
appropriated in this section shall be expended for a purpose 
other than the purpose indicated.  If the appropriation amount 
attributable to either year for the purpose indicated plus the 
amount of any transfers made according to Minnesota Statutes, 
section 124.14, subdivision 7, is insufficient, the aid for that 
year shall be prorated among all qualifying districts, and the 
state shall not be obligated for any additional amount for these 
purposes. 
    Sec. 11.  [REPEALER.] 
    Minnesota Statutes 1984, sections 129B.18 and 129B.19, are 
repealed. 

                               ARTICLE 6 

                          OTHER AIDS AND LEVIES
    Section 1.  Minnesota Statutes 1984, section 121.151, is 
amended to read: 
    121.151 [STANDARDS FOR REMOVAL OF HAZARDOUS SUBSTANCES.] 
    Prior to using the revenue obtained according to sections 
123.36, subdivision 13, 124.245, subdivisions 1b 2 and 1c 3, and 
275.125, subdivisions 11b and 11c, a school district shall 
obtain approval from the department of education for its method 
of removal or encapsulation of asbestos or cleanup or disposal 
of polychlorinated biphenyls.  The department of education shall 
consult with the pollution control agency, health department, 
environmental protection agency, or other appropriate 
governmental agency in approving or disapproving a district's 
method.  If the pollution control agency or other appropriate 
governmental agency adopts rules establishing standards for 
asbestos removal or encapsulation or cleanup or disposal of 
polychlorinated biphenyls, the department of education shall 
approve only those district methods which are in compliance with 
the adopted rules.  
    Sec. 2.  Minnesota Statutes 1984, section 123.702, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every school board shall provide for a 
voluntary program of early childhood health and developmental 
screening program for children once before entering 
kindergarten.  This screening program shall be established 
either by one board, by two or more boards acting in 
cooperation, by educational cooperative service units, by early 
childhood and family education programs, or by other existing 
programs.  No school board may make this screening examination a 
mandatory prerequisite to enroll a student.  The school 
districts are encouraged to reduce the costs of preschool health 
screening programs by utilizing volunteers in implementing the 
program.  
    Sec. 3.  Minnesota Statutes 1984, section 123.705, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AID AMOUNTS.] The department of education 
shall pay each school district for the cost of screening 
services provided pursuant to sections 123.701 to 123.705.  The 
payment shall not exceed $15 per child screened in fiscal year 
1983, $15 per child screened in fiscal year 1984, and $15.60 per 
child screened in fiscal year 1985, $16.15 per child screened in 
fiscal year 1986 and $8.15 per child screened in fiscal year 
1987.  
    Sec. 4.  Minnesota Statutes 1984, section 124.246, 
subdivision 2, is amended to read: 
    Subd. 2.  [AID.] An eligible district shall receive $1.04 
in fiscal year 1984 and $1.08 in fiscal year years 1985, 1986, 
and 1987 for each pupil, in average daily membership, enrolled 
in a public elementary, secondary or area vocational-technical 
or nonpublic elementary or secondary school.  Aid for nonpublic 
school pupils shall be paid to the district upon request by or 
on behalf of the pupils.  No district shall receive less 
than $1,040 in fiscal year 1984 and $1,080 in fiscal year years 
1985, 1986, and 1987. 
    Sec. 5.  Minnesota Statutes 1984, section 124.247, 
subdivision 3, is amended to read: 
    Subd. 3.  [AID.] A district which establishes a program for 
gifted and talented students shall receive for the purpose of 
this program an amount equal to $16.18 in the 1982-1983 school 
year, $18.25 in the 1983-1984 school year, and $19.00 in the 
1984-1985 school year, times the number of gifted and talented 
students in the district.  In the 1985-1986 school year and 
later school years, a district shall receive the greater of $40 
per gifted and talented student or $500 per district.  No more 
than five percent of the students enrolled in the district shall 
be counted as gifted and talented for the purpose of aid 
computations pursuant to this subdivision.  No more than five 
percent of the moneys received by a district pursuant to this 
subdivision may be expended for the purpose of administration of 
the program for gifted and talented students. 
    Sec. 6.  Minnesota Statutes 1984, section 124.245, is 
amended to read: 
    124.245 [CAPITAL EXPENDITURE EQUALIZATION AID.] 
    Subdivision 1.  [BASIC COMPUTATION.] (a) Each year the 
state shall pay a school district the difference by which an 
amount equal to $90 per pupil unit in that school year or, in 
districts where the number of actual pupil units has increased 
from the prior year, $95 per pupil unit in that school year, 
exceeds the amount raised by seven mills times the adjusted 
assessed valuation of the taxable property in the district for 
the preceding year.  To qualify for aid pursuant to this 
subdivision in any school year, a district must have levied 
seven EARC mills for use for capital expenditures in that year 
pursuant to section 275.125, subdivision 11a. 
    (b) The aid under clause (a) for any district which 
operates an approved secondary vocational education program or 
an approved senior secondary industrial arts program shall be 
computed using a dollar amount per pupil unit which is $5 higher 
than the amount specified in clause (a). 
    (c) If the sum of a district's capital expenditure levy 
under section 275.125, subdivision 11a, attributable to any 
school year and its capital expenditure equalization aid, if 
any, under this subdivision for that school year exceeds $90 per 
pupil unit or, in districts where the number of actual pupil 
units has increased from the prior year, $95 per pupil unit, the 
amount of the excess may be expended only for the purpose of 
capital expenditures for equipment for secondary vocational 
education programs or senior secondary industrial arts programs. 
    Subd. 1b. 2.  [SPECIAL PURPOSE COMPUTATION.] For the 
1983-1984 school year and Each year thereafter, the state shall 
pay a school district the difference by which an amount equal to 
$25 per pupil unit exceeds the amount raised by two mills times 
the adjusted assessed valuation of the taxable property in the 
district for the preceding year.  To qualify for aid pursuant to 
this subdivision in any school year, a district must levy the 
maximum permissible amount pursuant to section 275.125, 
subdivision 11b for use in that year.  Aid paid pursuant to this 
subdivision may be used only for the purposes for which the 
proceeds of the levy authorized in section 275.125, subdivision 
11b may be used.  
    Subd. 1c. 3.  [HAZARDOUS SUBSTANCE COMPUTATION.] For the 
1984-1985 school year and each year thereafter, The state shall 
pay a school district the difference by which an amount equal to 
$25 per pupil unit exceeds the amount raised by two mills times 
the adjusted assessed valuation of the taxable property in the 
district for the preceding year.  To qualify for aid pursuant to 
this subdivision in any school year, a district must levy the 
maximum permissible amount pursuant to section 275.125, 
subdivision 11c for use in that year.  Aid paid pursuant to this 
subdivision may be used only for the purposes for which the 
proceeds of the levy authorized in section 275.125, subdivision 
11c may be used.  
    Subd. 4.  [PROPORTIONATE AID.] For any district that does 
not levy the maximum permissible levy under section 275.125, 
subdivision 11a, 11b, or 11c, the aid under subdivision 1, 2, or 
3, that is attributable to the same school year shall be reduced 
by multiplying the aid amount by the ratio of the district's 
actual levy to its maximum permissible levy.  
    Subd. 2. 5.  [PUPIL UNITS.] As used in this section, pupil 
units shall include those units identified in section 124.17, 
subdivision 1, clauses (1) and (2), and 98.5 percent of the 
units identified in Minnesota Statutes 1980, Section 124.17, 
Subdivision 1, Clauses (4) and (5) for 1980-1981 means total 
pupil units. 
    Subd. 3.  [PAYMENT DEADLINE.] All capital expenditure 
equalization aid shall be distributed prior to November 1 of 
each year. 
    Subd. 4.  [PAYMENT SCHEDULE.] Starting in 1982-1983, 
Eighty-five percent of a district's capital expenditure 
equalization aid for each school year shall be distributed prior 
to November 1 of that school year.  The final aid distribution 
to each district shall be made prior to November 1 of the 
following school year. 
    Sec. 7.  [124.252] [TOBACCO USE PREVENTION PROGRAMS.] 
    Subdivision 1.  [ELIGIBILITY AND PURPOSE.] Each school 
board which institutes a tobacco use prevention program that 
meets the criteria specified in subdivision 2 and submits the 
proposed program to the commissioner of education shall be 
eligible for state aid for the following purposes:  
    (1) in-service training for public and nonpublic school 
staff;  
    (2) tobacco use prevention curricula including materials; 
    (3) community and parent awareness programs; and 
    (4) evaluation of curriculum and programs for tobacco use 
prevention.  
    Subd. 2.  [CRITERIA.] Each tobacco use prevention 
curriculum must include at least the following components:  
    (1) in-service training of teachers and staff;  
    (2) evaluation of programs and curriculum results;  
    (3) a kindergarten through grade 12 continuum of 
educational intervention related to tobacco use; and 
    (4) targeted intervention on tobacco use onset for students 
who are 12 to 14 years old based on evaluated curricula that 
have been shown to reduce tobacco use onset rates; and 
    (5) prohibition of smoking cigarettes and the use of other 
tobacco products on the school premises by minors.  
    Subd. 3.  [DISTRICT AID.] An eligible district shall 
receive 52 cents in fiscal year 1986 and 54 cents in fiscal year 
1987 for each pupil in average daily membership enrolled in a 
public elementary, secondary, or area vocational technical 
institute or nonpublic elementary or secondary school.  Aid for 
nonpublic school pupils shall be paid to the district upon 
request by or on behalf of the pupils.  No school district shall 
receive less than $1,000 in fiscal year 1986 and $1,040 in 
fiscal year 1987.  
    Subd. 4.  [APPLICATIONS.] A district that is eligible for 
aid shall apply to the commissioner of education by October 1 of 
each school year on the form supplied by the commissioner.  
    Subd. 5.  [ASSISTANCE TO DISTRICTS.] The commissioner of 
education, with the consultation and assistance of the 
commissioner of health, shall: 
    (1) provide technical assistance to districts for the 
development, implementation, and evaluation of tobacco use 
prevention curricula and programs;  
    (2) provide to districts information about evaluation 
results of various curricula as reported in the scientific 
literature and elsewhere; and 
    (3) collect information from districts about prevention 
programs and evaluation results.  
    Sec. 8.  Minnesota Statutes 1984, section 124.272, 
subdivision 3, is amended to read: 
    Subd. 3.  [COOPERATION PLAN.] To receive aid or to levy 
pursuant to section 275.125, subdivision 8a a district shall 
submit to the commissioner of education an application for aid 
by August 15.  The application shall contain the following:  
    (a) a three-year plan to improve the district curriculum, 
which gives priority to offering of any of the following:  a 
three-year mathematics sequence in grades 10 to 12, a three-year 
science sequence in grades 10 to 12, a two-year foreign language 
sequence, elementary and secondary courses in computer usage, or 
other programs recommended by the state board; 
    (b) an assurance that the proposed curriculum in clause (a) 
has been developed in conjunction with the planning, evaluation, 
and reporting process of section 123.741;  
    (c) a copy of the cooperation agreement;  
    (d) a description of the proposed increase in curriculum 
offerings resulting from the agreement;  
    (e) the estimated instructional cost of the cooperation 
plan for the following fiscal year; and 
    (f) the attributable administrative cost, that may not 
exceed five percent of the instructional costs, of the 
cooperation plan for the following fiscal year; and 
    (g) other information required by the commissioner. 
    Sec. 9.  Minnesota Statutes 1984, section 124.573, 
subdivision 2, is amended to read: 
    Subd. 2.  [SALARIES, EQUIPMENT AND TRAVEL.] Except for the 
1982-1983 school year, the state shall pay to any district or 
cooperative center 45 percent of The eligible expenses for 
secondary vocational aid are:  (1) the salaries paid to 
essential, licensed personnel in that school year for services 
rendered in that district's or center's secondary vocational 
education programs.  Except for the 1982-1983 school year, the 
state shall pay 45 percent of; (2) the costs of necessary travel 
between instructional sites by secondary vocational education 
teachers and 45 percent of; and (3) the costs of necessary 
travel by secondary vocational education teachers accompanying 
students to and from vocational student organization meetings 
held within the state for educational purposes.  For the 
1981-1982 school year, the state shall pay 45 percent of the 
costs of necessary equipment for these programs.  No secondary 
vocational equipment aid shall be paid for the 1982-1983 school 
year and thereafter.  The state shall pay to any district or 
cooperative center 41.5 percent of the eligible expenses for 
each school year.  The commissioner may withhold all or any 
portion of this aid for a secondary vocational education program 
which receives funds from any other source.  In no event shall a 
district or center receive a total amount of state aid pursuant 
to this section which, when added to funds from other sources, 
will provide the program an amount for salaries, equipment and 
travel which exceeds 100 percent of the amount of its 
expenditures for salaries, equipment and travel in the program. 
    Sec. 10.  Minnesota Statutes 1984, section 124.573, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [AID FOR CONTRACTED SERVICES.] In addition to 
the provisions of subdivisions 2 and 3, a school district or 
cooperative center may contract with a public or private agency 
other than a Minnesota school district or cooperative center for 
the provision of secondary vocational education services.  
Except for the 1982-1983 school year, The state shall pay each 
district or cooperative center 40 percent of the amount of a 
contract entered into pursuant to this subdivision.  The state 
board shall promulgate rules relating to program approval 
procedures and criteria for these contracts and aid shall be 
paid only for contracts approved by the commissioner of 
education.  For the purposes of subdivision 4, the district or 
cooperative center contracting for these services shall be 
construed to be providing the services.  For the purposes of 
subdivision 5, aid for these contracts shall be distributed on 
the same basis as aids for salaries and travel. 
    Sec. 11.  Minnesota Statutes 1984, section 124.646, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] (a) For the 
1983-1984 1985-1986 school year, school districts participating 
in the national school lunch program shall be paid by the state 
in the amount of 7.5 cents for each full paid student lunch 
served to students in the district.  
    (b) For the 1984-1985 1986-1987 school year, school 
districts participating in the national school lunch program 
shall be paid by the state in the amount of 7.5 cents for each 
full paid student lunch served to students in the district. 
    Sec. 12.  Minnesota Statutes 1984, section 125.60, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPLICATION PROCEDURES; LIMITS.] No school board 
shall grant an extended leave of absence pursuant to this 
section without applying for and receiving authorization from 
the commissioner of education.  The commissioner of education 
shall establish procedures for applications and shall approve or 
disapprove applications for extended leaves beginning before the 
1984-1985 school year pursuant to this subdivision within the 
limits of the appropriation for the purposes of sections 354.094 
and 354A.091.  Each application shall state whether or not the 
teacher requesting the extended leave of absence pursuant to 
this section intends to pay the employee contribution and 
requests state payment of the employer contribution into the 
teacher's retirement fund pursuant to section 354.094 or 
354A.091 in order to receive retirement service credit for years 
spent on leave.  The commissioner shall approve no more than 250 
applications for extended leaves beginning in the 1983-1984 
school year for teachers who intend to pay employee 
contributions and request state payment of employer 
contributions.  
    If more than 250 applications for extended leaves beginning 
in any school year are received by March 15 of the preceding 
school year, the commissioner may decide which applications to 
approve according to the order of receipt, a method ensuring 
participation by teachers from the maximum possible number of 
districts, random allotment or any combination of these 
methods.  Applications received by the commissioner after March 
15 shall be considered for approval according to the order of 
receipt within the limits prescribed by this subdivision.  
    The commissioner shall not approve any applications for 
extended leaves beginning in the 1984-1985 or any subsequent 
school year for teachers who intend to pay employee 
contributions and request state payment of employer 
contributions.  There is no limit on the number of applications 
which may be approved by school districts for extended leaves 
for teachers who do not intend to pay employee contributions or 
who do not request state payment of employer contributions. 
    Sec. 13.  Minnesota Statutes 1984, section 129B.02, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [DISSEMINATION.] The council shall collect and 
disseminate education research and planning information.  
Available research and planning information shall include, but 
not be limited to, information from (a) council on quality 
education projects; (b) Minnesota post-secondary institutions; 
(c) technology demonstration sites; (d) private foundation 
research; (e) educational effectiveness sites; (f) school 
districts; (g) federally funded research projects; and (h) other 
state and national theoretical and applied research activities.  
The council shall notify school districts and other interested 
parties that this research information is available.  The 
department of education shall assist the council in collecting 
and disseminating this information. 
    Sec. 14.  Minnesota Statutes 1984, section 129B.04, is 
amended by adding a subdivision to read: 
    Subd. 3.  [DECLINING GRANT AMOUNTS.] A grant awarded by the 
council on quality education shall be limited to three years.  
Beginning in the 1986-1987 school year the grant amount for the 
third year of a program shall not exceed 50 percent of the grant 
amount for the first year.  Prior to awarding a grant the 
council shall notify an applicant that the applicant is expected 
to continue successful programs after the third year. 
    Sec. 15.  Minnesota Statutes 1984, section 275.125, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [INTERDISTRICT COOPERATION LEVY.] Each year, a 
district which is eligible for aid pursuant to section 124.272, 
subdivision 2, may levy the amount of the estimated 
instructional and administrative costs of the interdistrict 
cooperation plan for the year to which the levy is attributable, 
but the levy shall not exceed the lesser of:  (1) $50 times the 
actual pupil units for that school year; (2) $50,000; or (3) one 
mill times the adjusted assessed valuation of the district for 
the preceding year.  The proceeds of the levy may only be used 
to pay for instructional costs and administrative costs, that 
may not exceed five percent of the instructional costs, incurred 
in providing the program offerings resulting from the 
cooperation plan. 
    Sec. 16.  Minnesota Statutes 1984, section 275.125, 
subdivision 11a, is amended to read: 
    Subd. 11a.  [CAPITAL EXPENDITURE LEVY.] (a) Each year a 
school district may levy an amount not to exceed the amount 
equal to $90 per total pupil unit, or $95 per total pupil unit 
in districts where the number of actual pupil units has 
increased from the prior year.  No levy under this clause shall 
exceed seven mills times the adjusted assessed valuation of the 
taxable property in the district for the preceding year. 
    (b) The proceeds of the levy may be used to acquire land, 
to equip and re-equip buildings and permanent attached fixtures, 
to rent or lease buildings for school purposes, to purchase 
textbooks, to purchase and lease computer systems hardware, 
software, and related supporting materials to support software, 
and to purchase or lease photocopy machines and 
telecommunications equipment.  The proceeds may also be used for 
capital improvement and repair of school sites, buildings and 
permanent attached fixtures, energy assessments, and for the 
payment of any special assessments levied against the property 
of the district authorized pursuant to section 435.19 or any 
other law or charter provision authorizing assessments against 
publicly owned property; provided that a district may not levy 
amounts to pay assessments for service charges, such as those 
described in section 429.101, whether levied pursuant to that 
section or pursuant to any other law or home rule provision.  
The proceeds may also be used for capital expenditures to reduce 
or eliminate barriers to or increase access to school facilities 
by handicapped individuals.  The proceeds may also be used to 
make capital improvements to schoolhouses to be leased pursuant 
to section 123.36, subdivision 10.  The proceeds may also be 
used to pay fees for capital expenditures assessed and certified 
to each participating school district by the educational 
cooperative service unit board of directors.  The proceeds may 
also be used to pay principal and interest on loans from the 
state authorized by sections 116J.37 and 298.292 to 298.298. 
    (c) Subject to the commissioner's approval, the proceeds 
may also be used to acquire or construct buildings.  The state 
board shall promulgate rules establishing the criteria to be 
used by the commissioner in approving and disapproving district 
applications requesting the use of capital expenditure tax 
proceeds for the acquisition or construction of buildings.  The 
approval criteria for purposes of building acquisition and 
construction shall include:  the appropriateness of the proposal 
for the district's long term needs; the availability of adequate 
existing facilities; and the economic feasibility of bonding 
because of the proposed building's size or cost. 
    (d) The board shall establish a fund in which the proceeds 
of this tax shall be accumulated until expended. 
    (e) The proceeds of the levy shall not be used for 
custodial or other maintenance services. 
    (f) Each year, subject to the seven mill limitation of 
clause (a) of this subdivision, a school district which operates 
an approved secondary vocational education program or an 
approved senior secondary industrial arts program may levy an 
additional amount equal to $5 per total pupil unit for capital 
expenditures for equipment for these programs.  
    Sec. 17.  Minnesota Statutes 1984, section 275.125, 
subdivision 11b, is amended to read:  
    Subd. 11b.  [SPECIAL PURPOSE CAPITAL EXPENDITURE LEVY.] In 
addition to the levy authorized in subdivision 11a, each year a 
school district may levy an amount not to exceed the amount 
equal to $25 per total pupil unit.  No levy under this clause 
shall exceed two mills times the adjusted assessed valuation of 
the property in the district for the preceding year.  The 
proceeds of the tax shall be placed in the district's capital 
expenditure fund and may be used only for the following: 
    (a) for energy audits on district-owned buildings, and for 
funding those energy conservation and renewable energy measures 
which the energy audits indicate will reduce the use of 
nonrenewable sources of energy to the extent that the projected 
energy cost savings will amortize the cost of the conservation 
measures within a period of ten years or less;  
    (b) for capital expenditures for the purpose of reducing or 
eliminating barriers to or increasing access to school 
facilities by handicapped persons;  
    (c) for capital expenditures to bring district facilities 
into compliance with the uniform fire code adopted pursuant to 
chapter 299F;  
    (d) for expenditures for the removal of asbestos from 
school buildings or property or for, asbestos encapsulation, or 
asbestos-related repairs;  
    (e) for expenditures for the cleanup and disposal of 
polychlorinated biphenyls found in school buildings or property; 
and 
    (f) for the cleanup, removal, disposal, and repairs related 
to storing transportation fuels such as alcohol, gasoline, fuel 
oil, and special fuel, as defined in section 296.01; and 
    (g) to pay principal and interest on loans from the state 
authorized by sections 116J.37 and 298.292 to 298.298. 
    Sec. 18.  Minnesota Statutes 1984, section 275.125, 
subdivision 11c, is amended to read:  
    Subd. 11c.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE LEVY.] 
In addition to the levy authorized in subdivisions 11a and 11b, 
each year a school district may levy an amount not to exceed the 
amount equal to $25 per total pupil unit.  No levy under this 
subdivision shall exceed two mills times the adjusted assessed 
valuation of the property in the district for the preceding 
year.  The proceeds of the tax shall be placed in the district's 
capital expenditure fund and may be used only for expenditures 
necessary for the removal or encapsulation of asbestos from 
school buildings or property, asbestos related repairs, or the 
cleanup and disposal of polychlorinated biphenyls found in 
school buildings or property, or the cleanup, removal, disposal, 
and repairs related to storing transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01. 
    Sec. 19.  Minnesota Statutes 1984, section 354.66, 
subdivision 3, is amended to read:  
    Subd. 3.  For purposes of this section, the term "part time 
teaching position" shall mean a teaching position within the 
district in which the teacher is employed for at least 50 full 
days or a fractional equivalent thereof as prescribed in section 
354.091, and for which the teacher is compensated in an amount 
not exceeding 60 67 percent of the compensation established by 
the board for a full time teacher with identical education and 
experience within the district. 
    Sec. 20.  Minnesota Statutes 1984, section 354A.094, 
subdivision 2, is amended to read:  
    Subd. 2.  For purposes of this section, the term "part time 
teaching position" shall mean a teaching position within the 
district in which the teacher is employed for at least 50 full 
days or a fractional equivalent of 50 full days calculated using 
the appropriate minimum number of hours which would result in a 
full day of service credit by the appropriate association and 
for which the teacher is compensated in an amount not to exceed 
60 67 percent of the compensation rate established by the board 
for a full time teacher with identical education and experience 
within the district. 
    Sec. 21.  [MOUNTAIN IRON-BUHL SCHOOL DISTRICT; ADDITIONAL 
EXPENSES OF TRANSITION.] 
    In addition to the expenses specified in Minnesota 
Statutes, section 122.533, independent school district No. 712 
may levy the following in 1985: 
    (a) An amount not to exceed $63,000 for additional teacher 
salary expenses incurred as a result of the operation of 
Minnesota Statutes, section 122.532, the proceeds of this levy 
to be placed in the general fund of the district; and 
    (b) An amount not to exceed $50,000 for the cost of new 
uniforms for the various athletic teams, bands, and choirs in 
the new district, the proceeds of this levy to be placed in the 
capital expenditure fund of the district. 
    Sec. 22.  [SPECIAL LEVY.] 
    In addition to the levy authorized by Minnesota Statutes, 
section 275.125, subdivision 11a, independent school district 
No. 457, Trimont, may levy in 1985 an amount up to $75,000 for 
capital expenditures.  The proceeds of the levy may be used only 
to replace blacktop on the school parking lot. 
    By July 30, 1985, the school board shall hold a public 
hearing on the need for the proposed levy.  Upon receipt, within 
30 days after the hearing, of a petition objecting to the levy 
signed by a number of qualified voters in the district equal to 
the greater of 50 voters or 15 percent of the number of voters 
who voted in the most recent school board election, the board 
shall hold a referendum on the proposed levy.  The referendum 
shall be held on the date set by the board but no later than 
October 1, 1985.  If a valid petition is not received by the 
school board, within 30 days after the hearing, no referendum 
need be held. 
    Sec. 23.  [SURPLUS SCHOOL LEVY; EDINA SCHOOL DISTRICT.] 
    In addition to the capital expenditure levy authorized in 
Minnesota Statutes, section 275.125, subdivision 11a, 
independent school district No. 273, Edina, may levy in 1985, 
and also in 1986, an amount not to exceed $5 times the 
population of the district.  This levy may be used only for 
repairs and capital improvements of surplus school buildings 
that are used substantially for public nonschool purposes. 
    Sec. 24.  [GIFTED PROGRAM STUDY.] 
    The department of education, with the advice of an advisory 
group on gifted education, shall study and make recommendations 
about the following: 
    (1) an assessment of present programs in gifted education 
and pupils served; 
    (2) a review of current research and literature on 
education of the gifted and talented; 
    (3) a determination of the essential elements of a quality 
education program for gifted pupils; 
    (4) a review of gifted and talented programs in other 
states; 
    (5) the current roles of the state, educational cooperative 
service units, higher education institutions, local school 
districts, and communities in educating gifted and talented 
pupils; 
    (6) funding structures for gifted and talented programs at 
the state and district level; 
    (7) ways to expand educational opportunities statewide for 
all gifted and talented pupils; 
    (8) an implementation plan for improving gifted and 
talented programs, including short- and long-range goals, with 
an evaluation component for measuring progress toward achieving 
the goals of the plan; and 
    (9) the development of guidelines for the education of the 
gifted and talented, including identification, program 
development, parent and community involvement, and evaluation. 
    By February 1, 1986, the department shall report its 
recommendations to the education committees of the legislature. 
    Sec. 25.  [JORDAN GRANT.] 
    Because of recent sexual abuse investigations and 
allegations, and resulting court actions in independent school 
district No. 717, Jordan, that have resulted in a loss of pupil 
units during the 1984-1985 school year, the department of 
education shall make a grant to that school district for fiscal 
year 1986 to compensate for that loss. 
    Sec. 26.  [EXCESS CAPITAL LEVY FOR DOVER-EYOTA DISTRICT.] 
    Notwithstanding the levy limits in Minnesota Statutes, 
chapter 275, and in addition to all other levies authorized by 
law, independent school district No. 533, Dover-Eyota, may levy 
in 1985 only an amount not to exceed $91,000.  The proceeds of 
the levy may be used for any purpose for which the levies made 
under Minnesota Statutes, section 275.125, subdivisions 11a, 
11b, 11c, and 12 may be used.  
    Sec. 27.  [INSTRUCTION TO REVISOR.] 
    In the supplement to Minnesota Statutes 1984 and in 
subsequent editions and supplements thereafter, the revisor of 
statutes is requested to change the heading before section 
123.701 from "PRESCHOOL HEALTH SCREENING" to "EARLY CHILDHOOD 
HEALTH AND DEVELOPMENTAL SCREENING." 
    Sec. 28.  [DEPARTMENT OF EDUCATION APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated. 
    Subd. 2.  [HEALTH AND DEVELOPMENTAL SCREENING 
PROGRAMS.] For health and developmental screening programs 
pursuant to Minnesota Statutes, sections 123.701 to 123.705 
there is appropriated: 
    $882,000.....1986, 
    $527,400.....1987. 
    The appropriation for fiscal year 1986 includes $121,000 
for aid for fiscal year 1985 payable in fiscal year 1986 and 
$761,000 for aid for fiscal year 1986 payable in fiscal year 
1986. 
    The appropriation for fiscal year 1987 includes $134,300 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$393,100 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$895,300 for fiscal year 1986 and $462,500 for fiscal year 1987. 
    Subd. 3.  [ABATEMENT AID.] For abatement aid pursuant to 
Minnesota Statutes, section 124.214, subdivision 2, there is 
appropriated: 
    $4,886,000.....1986, 
    $5,000,000.....1987. 
    Subd. 4.  [CAPITAL EXPENDITURE AID.] For capital 
expenditure aid pursuant to Minnesota Statutes, section 124.245, 
subdivision 1 or 2, there is appropriated: 
    $249,600.....1986, 
    $256,700.....1987. 
    The appropriation for fiscal year 1986 includes $34,900 for 
aid for fiscal year 1985 payable in fiscal year 1986 and 
$214,700 for aid for fiscal year 1986 payable in fiscal year 
1986. 
    The appropriation for fiscal year 1987 includes $37,900 for 
aid for fiscal year 1986 payable in fiscal year 1987 and 
$218,800 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$252,600 for fiscal year 1986 and $257,400 for fiscal year 1987. 
    Any unexpended balance remaining from the appropriation in 
this subdivision for either year may be expended for special 
purpose capital expenditure aid pursuant to Minnesota Statutes, 
section 124.245, subdivision 3. 
    Subd. 5.  [SPECIAL PURPOSE CAPITAL EXPENDITURE AID.] For 
special purpose capital expenditure aid pursuant to Minnesota 
Statutes, section 124.245, subdivision 3, there is appropriated: 
    $45,800.....1986, 
    $50,800.....1987. 
    The appropriation for fiscal year 1986 includes $6,400 for 
aid for fiscal year 1985 payable in fiscal year 1986 and $39,400 
for aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for fiscal year 1987 includes $7,000 for 
aid for fiscal year 1986 payable in fiscal year 1987 and $43,800 
for aid for fiscal year 1987 payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of $46,300 
for fiscal year 1986 and $51,500 for fiscal year 1987. 
    Any unexpended balance remaining from the appropriation in 
this subdivision for either year may be expended for capital 
expenditure aid pursuant to Minnesota Statutes, section 124.245, 
subdivision 1. 
    Subd. 6.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE 
AID.] For hazardous substance capital expenditure aid pursuant 
to Minnesota Statutes, section 124.245, subdivision 4, there is 
appropriated: 
    $42,100.....1986, 
    $50,200.....1987. 
    The appropriation for fiscal year 1986 includes $6,200 for 
aid for fiscal year 1985 payable in fiscal year 1986, and 
$35,900 for aid for fiscal year 1986 payable in fiscal year 1986.
    The appropriation for fiscal year 1987 includes $6,400 for 
aid for fiscal year 1986 payable in fiscal year 1987 and $43,800 
for aid for fiscal year 1987 payable in fiscal year 1987.  
    The appropriations are based on aid entitlements of $42,300 
for fiscal year 1986 and $51,500 for fiscal year 1987. 
    Any unexpended balance remaining from the appropriation in 
this subdivsion for either year may be expended for capital 
expenditure aid pursuant to Minnesota Statutes, section 124.245, 
subdivision 1 or 2. 
    Subd. 7.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] For 
educational cooperative service units there is appropriated: 
    $715,700.....1986, 
    $743,700.....1987. 
    The appropriation for aid for fiscal year 1986 includes 
$104,300 for aid for fiscal year 1985 payable in fiscal year 
1986 and $611,400 for aid for fiscal year 1986 payable in fiscal 
year 1986. 
    The appropriation for fiscal year 1987 includes $107,900 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$635,800 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$719,300 for fiscal year 1986 and $748,000 for fiscal year 1987. 
    Funds from this appropriation shall be transmitted to ECSU 
boards of directors for general operations in the amount of 
$65,390 per ECSU for fiscal year 1986 and $68,000 per ECSU for 
fiscal year 1987; however, the ECSU whose boundaries coincide 
with the boundaries of development region 11 and the ECSU whose 
boundaries encompass development regions six and eight shall 
each receive $130,780 for fiscal year 1986 and $136,000 for 
fiscal year 1987 for general operations. 
    The department may withhold all or a portion of these funds 
from an ECSU if the department determines that an ECSU has not 
developed an annual plan according to Minnesota Statutes, 
section 123.58, subdivision 8, or if the department determines 
the ECSU is not providing services according to its annual 
plan.  If funds are withheld from an ECSU, the department may 
allocate the funds to other regional service providers or to a 
school district or group of districts providing services to 
districts within the ECSU region. 
    Subd. 8.  [SCHOOL LUNCH AND FOOD STORAGE AID.] For school 
lunch aid pursuant to Minnesota Statutes, section 124.646 and 
for food storage and transportation costs for USDA donated 
commodities there is appropriated: 
    $4,625,000.....1986, 
    $4,625,000.....1987. 
    Any unexpended balance remaining from the appropriations in 
this subdivision shall be prorated among participating schools 
based on the number of fully paid lunches served during that 
school year in order to meet the state revenue matching 
requirement of the USDA National School Lunch Program. 
     Participating schools are encouraged to promote the regular 
consumption of milk through the school's lunch and nutrition 
education programs.  Every effort should also be made to promote 
milk and other wholesome dairy products wherever and whenever 
foods are sold within the context of school activities. 
    If the appropriation amount attributable to either year is 
insufficient, the rate of payment for each fully paid student 
lunch shall be reduced and the aid for that year shall be 
prorated among participating schools so as not to exceed the 
total authorized appropriation for that year. 
    Subd. 9.  [INTERDISTRICT COOPERATION AID.] For aid for 
interdistrict cooperation programs according to Minnesota 
Statutes, section 124.272, there is appropriated: 
    $1,494,300.....1986, 
     $2,085,000.....1987. 
    The appropriation for fiscal year 1986 includes $187,100 
for aid for fiscal year 1985 payable in fiscal year 1986 and 
$1,307,200 for aid for fiscal year 1986 payable in fiscal year 
1986.  
    The appropriation for fiscal year 1987 includes $230,700 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$1,854,300 for aid for fiscal year 1987 payable in fiscal year 
1987.  
    The appropriations are based on aid entitlements of 
$1,537,900 for fiscal year 1986 and $2,181,500 for fiscal year 
1987. 
    Subd. 10.  [GIFTED AND TALENTED STUDENTS.] For programs for 
the gifted and talented pursuant to Minnesota Statutes, section 
124.247, there is appropriated: 
    $1,282,600.....1986, 
    $1,395,500.....1987. 
    The appropriation for aid for fiscal year 1986 includes 
$99,100 for aid for fiscal year 1985 payable in fiscal year 1986 
and $1,183,500 for aid for fiscal year 1986 payable in fiscal 
year 1986. 
    The appropriation for fiscal year 1987 includes $208,900 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$1,186,600 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$1,392,400 for fiscal year 1986 and $1,396,000 for fiscal year 
1987. 
    Subd. 11.  [GIFTED STUDY.] For the gifted education program 
study there is appropriated: 
    $35,000.....1986. 
    The appropriation is available until June 30, 1987.  A 
portion of the appropriation may be used for administrative 
expenses. 
    Subd. 12.  [NONPUBLIC AIDS.] For programs for nonpublic 
educational aid pursuant to sections 123.931 to 123.947 there is 
appropriated: 
    $6,763,400.....1986, 
    $7,184,100.....1987. 
    The appropriation for aid for fiscal year 1986 includes 
$960,700 for aid for fiscal year 1985 payable in fiscal year 
1986 and $5,802,700 for aid for fiscal year 1986 payable in 
fiscal year 1986. 
    The appropriation for fiscal year 1987 includes $1,024,000 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$6,160,100 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$6,826,700 for fiscal year 1986 and $7,247,200 for fiscal year 
1987. 
    Subd. 13.  [INDIAN EDUCATION.] For certain Indian education 
programs there is appropriated: 
    $167,181.....1986, 
    $173,747.....1987. 
    The appropriation for aid for fiscal year 1986 includes 
$24,352 for aid for fiscal year 1985 payable in fiscal year 1986 
and $142,829 for aid for fiscal year 1986 payable in fiscal year 
1986. 
    The appropriation for fiscal year 1987 includes $25,205 for 
aid for fiscal year 1986 payable in fiscal year 1987 and 
$148,542 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$168,034 for fiscal year 1986 and $174,755 for fiscal year 1987. 
    These appropriations are available for expenditure with the 
approval of the commissioner of education. 
    The commissioner shall not approve the payment of any 
amount to a school district pursuant to this subdivision unless 
that school district is in compliance with all applicable laws 
of this state. 
    Up to the following amounts may be distributed to the 
following school districts for fiscal year 1986:  $52,738 to 
independent school district No. 309-Pine Point School; $9,313 to 
independent school district No. 166; $14,374 to independent 
school district No. 432; $13,513 to independent school district 
No. 435; $40,541 to independent school district No. 707; and 
$37,555 to independent school district No. 38.  These amounts 
shall be expended only for the benefit of Indian students and 
for the purpose of meeting established state educational 
standards or statewide requirements. 
    Up to the following amounts may be distributed to the 
following school districts for fiscal year 1987:  $54,848 to 
independent school district No. 309-Pine Point School; $9,685 to 
independent school district No. 166; $14,949 to independent 
school district No. 432; $14,053 to independent school district 
No. 435; $42,163 to independent school district No. 707; and 
$39,057 to independent school district No. 38.  These amounts 
shall be expended only for the benefit of Indian students and 
for the purpose of meeting established state educational 
standards or statewide requirements. 
    These appropriations are available only if there will not 
be available for the districts enumerated in this subdivision 
for the applicable school year any operation support funds from 
the federal bureau of Indian affairs pursuant to the 
Johnson-O'Malley Act, Public Law Number 73-167 or 25 Code of 
Federal Regulations 273.31, or equivalent money from the same or 
another source. 
    Before a district can receive moneys pursuant to this 
subdivision, the district must submit to the commissioner of 
education evidence that it has: 
    (a) complied with the uniform financial accounting and 
reporting standards act, Minnesota Statutes, sections 121.90 to 
121.917.  For each school year, compliance with Minnesota 
Statutes, section 121.908, subdivision 3a, shall require the 
school district to prepare one budget including the amount 
available to the district pursuant to this subdivision and one 
budget which does not include these moneys.  The budget of that 
school district for the 1987-1988 school year prepared according 
to Minnesota Statutes, section 121.908, subdivision 3a, shall be 
submitted to the commissioner of education at the same time as 
1986-1987 budgets and shall not include any moneys appropriated 
in this subdivision; 
    (b) conducted a special education needs assessment and 
prepared a proposed service delivery plan according to Minnesota 
Statutes, sections 120.03 and 120.17; Public Law Number 94-142, 
an act of the 94th Congress of the United States cited as the 
"Education for All Handicapped Children Act of 1975"; and 
applicable state board of education rules; and 
    (c) compiled accurate daily pupil attendance records. 
    Prior to approving payment of any amount to a school 
district pursuant to this subdivision, the commissioner shall 
review and evaluate each affected district's compliance with 
clauses (a), (b), and (c), and any other applicable laws, and 
each affected district's need for the moneys.  Each affected 
district's net unappropriated fund balance in all operating 
funds as of June 30 of the previous school year shall be taken 
into consideration. 
    Subd. 14.  [CHEMICAL USE PROGRAMS.] For aid for chemical 
dependency programs authorized pursuant to Minnesota Statutes, 
section 124.246, there is appropriated: 
    $1,023,800....1986, 
    $1,022,000....1987. 
    The appropriation for fiscal year 1986 includes $153,900 
for aid for fiscal year 1985 payable in fiscal year 1986 and 
$869,900 for aid for fiscal year 1986 payable in fiscal year 
1986. 
    The appropriation for fiscal year 1987 includes $153,500 
for aid for fiscal year 1986 payable in fiscal year 1987 and 
$868,500 for aid for fiscal year 1987 payable in fiscal year 
1987. 
    The appropriations are based on aid entitlements of 
$1,023,400 for fiscal year 1986 and $1,021,800 for fiscal year 
1987. 
    Subd. 15.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] For the 
maximum effort school loan fund there is appropriated: 
    $2,390,300.....1986, 
    $2,585,300.....1987. 
    Any unexpended balance of this appropriation for fiscal 
year 1986 shall not cancel but shall be available for the second 
year of the biennium. 
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in Minnesota Statutes, section 124.46, to the extent that money 
in the fund is not sufficient to pay when due the full amount of 
principal and interest due on school loan bonds.  The purpose of 
these appropriations is to ensure that sufficient money is 
available in the fund to prevent a statewide property tax levy 
as would otherwise be required pursuant to Minnesota Statutes, 
section 124.46, subdivision 3.  Notwithstanding the provisions 
of Minnesota Statutes, section 124.39, subdivision 5, any amount 
of the appropriation made in this section which is not needed to 
pay when due the principal and interest due on school loan bonds 
shall not be transferred to the debt service loan account of the 
maximum effort school loan fund but instead shall cancel and 
revert to the general fund.  
    Subd. 16.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
secondary vocational education aid pursuant to Minnesota 
Statutes, section 124.573, there is appropriated: 
    $21,117,400.....1986, 
    $21,511,300.....1987. 
    The appropriation for 1986 includes $3,422,400 for aid for 
fiscal year 1985 payable in fiscal year 1986.  This amount also 
includes $17,695,000 for aid for fiscal year 1986 payable in 
fiscal year 1986. 
    The appropriation for 1987 includes $3,122,700 for aid for 
fiscal year 1986 payable in fiscal year 1987.  This amount also 
includes $18,388,600 for aid for fiscal year 1987 payable in 
fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$20,817,700 for fiscal year 1986 and $21,633,600 for fiscal year 
1987. 
    For the purposes of this subdivision, money appropriated 
for secondary vocational education programs may not be expended 
for the purpose of discontinuing or converting existing senior 
secondary school industrial arts education programs.  
    Subd. 17.  [COUNCIL ON QUALITY EDUCATION; VENTURE FUND 
GRANTS.] For the council on quality education venture fund 
grants pursuant to Minnesota Statutes, sections 129B.01 to 
129B.05, there is appropriated: 
    $717,700.....1986, 
    $450,000.....1987. 
    The appropriation for fiscal year 1986 includes $122,400 
for grants for fiscal year 1985 payable in fiscal year 1986 and 
$595,300 for grants for fiscal year 1986 payable in fiscal year 
1986. 
    The appropriation for fiscal year 1987 includes $105,100 
for grants for fiscal year 1986 payable in fiscal year 1987 and 
$344,900 for grants for fiscal year 1987 payable in fiscal year 
1987. 
    Any unexpended balance remaining from the appropriations in 
this subdivision for 1986 shall not cancel and shall be 
available for the second year of the biennium. 
    The appropriations are based on entitlements of $700,400 
for fiscal year 1986 and $405,800 for fiscal year 1987. 
     The council may maintain a complement of up to three 
professionals and one clerical staff for fiscal year 1986 and 
two professionals and one clerical staff for fiscal year 1987. 
    Subd. 18.  [EXTENDED LEAVES OF ABSENCE.] To meet the 
state's obligation prescribed in Minnesota Statutes, sections 
354.094 and 354A.091, there is appropriated: 
    $938,000.....1986, 
    $602,000.....1987.  
    Subd. 19.  [PART-TIME TEACHING.] To meet the state's 
obligation prescribed in Minnesota Statutes, sections 354.66 and 
354A.094, there is appropriated: 
    $118,000.....1986.  
    Subd. 20.  [SECONDARY VOCATIONAL STUDENT ORGANIZATIONS.] 
    For aid for secondary vocational student organizations 
there is appropriated: 
    $60,000.....1986, 
    $60,000.....1987. 
    The appropriations for fiscal years 1986 and 1987 are 
available for expenditure if the commissioner of education 
authorizes an additional $160,000 for each of fiscal years 1986 
and 1987 from the department's biennial appropriations for this 
purpose. 
    Subd. 21.  [STATE MATCHING GRANT.] For a grant for a 
leadership program in independent school district No. 695, 
Chisholm, there is appropriated: 
    $60,000.....1986. 
    The sum shall be available until June 30, 1987. 
    The department shall pay the grant amount only if a federal 
matching grant is awarded to the district. 
    Subd. 22.  [JORDAN GRANT.] There is appropriated $36,570 
for fiscal year 1986 for the purposes of section 25. 
    Subd. 23.  [SCHOOL BUS.] For independent school district No.
707, Nett Lake, to purchase a school bus there is appropriated: 
    $40,000.....1986. 
    Subd. 24.  [PRORATION.] Except as provided in Minnesota 
Statutes, section 124.14, subdivision 7, none of the amounts 
apropriated in this section shall be expended for a purpose 
other than the purpose indicated.  If the appropriation amount 
attributable to either year for the purpose indicated plus the 
amount of any transfers made according to Minnesota Statutes, 
section 124.14, subdivision 7, is insufficient, the aid for that 
year shall be prorated among all qualifying districts and the 
state shall not be obligated for any additional amount for these 
purposes. 
    Sec. 29.  [DEPARTMENT OF ECONOMIC SECURITY APPROPRIATION.] 
    There is appropriated from the general fund to the 
department of economic security the sum indicated in this 
section for the fiscal year ending June 30 in the year 
designated to pay the obligation of independent school district 
No. 707, Nett Lake, for unemployment compensation: 
    $40,000.....1986. 
    The sum shall be available until June 30, 1987. 
    Sec. 30.  [APPROPRIATIONS FOR DEFICIENCIES.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years indicated for the payment of 
deficiencies in funds available for the purposes indicated. 
These sums shall be added to the sums appropriated for fiscal 
year 1985 for the same purposes. 
    Subd. 2.  [ABATEMENT AID.] For abatement aid deficiency 
according to Minnesota Statutes, section 124.214, there is 
appropriated: 
    $1,798,453.....1985. 
    Subd. 3.  [CAPITAL EXPENDITURE.] For capital expenditure 
aid deficiency according to Minnesota Statutes, section 124.245, 
subdivision 1, there is appropriated: 
    $18,735.....1985. 
    Subd. 4.  [CHEMICAL USE PROGRAM.] For chemical dependency 
aid deficiency according to Minnesota Statutes, section 124.246, 
there is appropriated: 
    $12,825.....1985. 
    Subd. 5.  [SECONDARY VOCATIONAL PROGRAM.] For secondary 
vocational aid deficiency according to Minnesota Statutes, 
section 124.573, there is appropriated: 
    $1,105,000.....1985. 
    Sec. 31.  [REPEALER.] 
    Minnesota Statutes 1984, sections 123.705, subdivision 2; 
124.247, subdivision 6; and 125.611, subdivisions 3, 4, 5, 6, 
and 7, are repealed. 
    Sec. 32.  [EFFECTIVE DATES.] 
    Subdivision 1.  [DEFICIENCIES.] Section 30 is effective the 
day following final enactment. 
    Subd. 2.  [TOBACCO USE PREVENTION PROGRAM.] Section 7 is 
effective upon enactment of an increase in the rate of the 
special sales and use tax imposed upon cigarettes, which 
provides that the proceeds shall be deposited in a public health 
fund and which appropriates money to fund the program 
established in section 7. 

                               ARTICLE 7 

                             MISCELLANEOUS 
    Section 1.  Minnesota Statutes 1984, section 116J.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] In this section:  
    (a) "Commissioner" means the commissioner of energy, 
planning and development.  Upon passage of legislation creating 
a body known as the Minnesota energy authority, the duties 
assigned to the commissioner in this section are delegated to 
the authority.  
    (b) "Maxi-audit" has the meaning given in section 116J.06, 
subdivision 12.  
    (c) "Energy conservation investments" mean all capital 
expenditures that are associated with conservation measures 
identified in a maxi-audit and that have a ten-year or less pay 
back period.  Public school districts that received a federal 
institutional building grant in 1984 to convert a heating system 
to wood, and that apply for an energy conservation investment 
loan to match a federal grant for wood conversion, shall be 
allowed to calculate payback of conservation measures based on 
the costs of the traditional fuel in use prior to the wood 
conversion. 
    Sec. 2.  Minnesota Statutes 1984, 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 an area vocational 
technical institute, 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 local school board of education.  No person shall be 
admitted to any public school after September 1, 1971, (1) as a 
kindergarten student pupil, unless he the pupil is at least five 
years of age on September 1 of the calendar year in which the 
school year for which he the pupil seeks admission commences; or 
(2) as a first grade student, unless he the pupil is at least 
six years of age on September 1 of the calendar year in which 
the school year for which he 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. 3.  Minnesota Statutes 1984, section 120.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AGES AND TERM.] Every child between seven 
and 16 years of age and every child under the age of seven who 
is enrolled in grade kindergarten or above shall attend a public 
school, or a private school, during the entire time that the 
school is in session during any school year.  No child shall be 
required to attend a public school more than 200 days or their 
equivalent, during any school year.  A parent may withdraw a 
child under the age of seven from school at any time. 
    Sec. 4.  Minnesota Statutes 1984, section 120.11, is 
amended to read: 
    120.11 [SCHOOL BOARDS AND TEACHERS, DUTIES.] 
    It shall be the duty of each board through its clerk or 
other authorized agent or employee, to report the names of 
children between six and 16 years of age required to attend 
school, with excuses, if any, granted in such district, to the 
superintendent or principals thereof, within the first week of 
school.  Subsequent excuses granted shall be forthwith reported 
in the same manner.  The clerk or principal shall provide the 
teachers in the several schools under his supervision, with the 
necessary information for the respective grades of school, 
relating to the list of pupils with excuses granted.  On receipt 
of the list of such pupils of school age and the excuses 
granted, the clerk or principals shall report the names of 
children not excused, who are not attending school, with the 
names and addresses of their parents, to the district 
superintendent within five days after receiving the report.  
    Sec. 5.  Minnesota Statutes 1984, section 120.15, is 
amended to read: 
    120.15 [CLASSES FOR TRUANTS.] 
    A board may maintain ungraded classes for the instruction 
of children between seven and 16 years of age who are required 
to attend school and who are habitually truant or not in 
attendance. 
    All such children shall be deemed delinquent and the board 
may compel their attendance at such ungraded classes, or any 
department of the public schools, as the board may determine, 
and cause them to be brought before the juvenile court of the 
county for appropriate discipline. 
    Sec. 6.  [121.161] [SHARED SERVICE AGREEMENTS.] 
    The commissioner may make a shared service agreement with 
another public agency.  The agreement must be of mutual benefit 
to the state, the department, and the other agency.  The term of 
the agreement must not be more than three years.  The 
commissioner and the other agency need not consult the 
legislative advisory commission before making the agreement.  
    Charges by the department and the other agency must be on 
an actual cost basis, and the receipts are dedicated to the 
operation of the department or agency receiving them and are 
appropriated for that purpose. 
    Sec. 7.  Minnesota Statutes 1984, section 121.912, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIMITATIONS.] No Except as provided in 
this subdivision, section 7 of this article, and sections 
123.36, 475.61, and 475.65, a school district shall may not 
permanently transfer money from (1) an operating fund to a 
nonoperating fund except as provided in this subdivision; (2) a 
nonoperating fund to another nonoperating fund; or (3) a 
nonoperating fund to an operating fund.  Permanent transfers may 
be made from an operating any fund to any other fund to correct 
for prior fiscal years' errors discovered after the books have 
been closed for that year.  Permanent transfers may be made from 
the general fund to eliminate deficits in another fund when that 
other fund is being discontinued.  When a district discontinues 
operation of a district-owned bus fleet or a substantial portion 
of a fleet, permanent transfers may be made from the fund 
balance account entitled "pupil transportation fund appropriated 
for bus purchases" to the capital expenditure fund, with the 
approval of the commissioner.  The levy authorized pursuant to 
section 275.125, subdivision 11a, shall be reduced by an amount 
equal to the amount transferred.  Any school district may 
transfer any amount from the unappropriated fund balance account 
in its transportation fund to any other operating fund or to the 
appropriated fund balance account for bus purchases in its 
transportation fund. 
    Sec. 8.  [121.9121] [EXCEPTIONS FOR PERMANENT FUND 
TRANSFERS.] 
    Subdivision 1.  [STATE BOARD AUTHORIZATION.] The state 
board may authorize a board to transfer money from any fund or 
account to another fund or account according to this section. 
    Subd. 2.  [APPLICATION.] A board requesting authority to 
transfer money shall apply to the state board and provide 
information requested.  The application shall indicate the law 
or rule prohibiting the desired transfer.  It shall be signed by 
the superintendent and approved by the school board. 
    Subd. 3.  [ADVISORY COUNCIL.] The state board shall submit 
each application to the advisory council on uniform financial 
accounting and reporting standards for its recommendations.  The 
advisory council shall develop and maintain guidelines for 
reviewing and approving requests. 
    Subd. 4.  [APPROVAL STANDARD.] The state board may approve 
a request only when an event has occurred in a district that 
could not have been foreseen by the district.  The event shall 
relate directly to the fund or account involved and to the 
amount to be transferred. 
    Subd. 5.  [APPROVAL.] The state board shall use the 
advisory council guidelines and recommendation when it approves, 
disapproves, or modifies a request.  It shall take action on a 
request within 75 days of receiving the request.  If the state 
board action is different from the action recommended by the 
advisory council, the state board shall provide written reasons 
for the difference. 
    Subd. 6.  [PROCEDURES.] The state board and advisory 
council may prepare forms and adopt procedures necessary to 
implement this section. 
    Subd. 7.  [REPORT TO LEGISLATURE.] By January 15 each year 
the state board shall report to the education committees of the 
legislature about the requests for transfers, action taken for 
each request, and the reasons for the action.  The report shall 
include the recommendations of the advisory council. 
    Sec. 9.  Minnesota Statutes 1984, section 121.931, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPROVAL POWERS.] The state board, with the 
advice and assistance of the ESV computer council, shall approve 
or disapprove the following, according to the criteria in 
section 121.937 and after promulgation, the rules adopted 
pursuant to subdivision 8: 
    (a) the creation of regional management information centers 
pursuant to section 121.935; 
    (b) the transfer by a district of its affiliation from one 
regional management information center to another; 
    (c) the use by a district of an alternative a management 
information system to other than the ESV-IS subsystem through 
the regional management information center or a state board 
approved alternative system pursuant to section 121.936, 
subdivisions 2 to 4; and 
    (d) annual and biennial plans and budgets submitted by 
regional management information centers pursuant to section 
121.935, subdivisions 3 and 4. 
    Sec. 10.  Minnesota Statutes 1984, section 121.936, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MANDATORY PARTICIPATION.] (a) By July 1, 
1980, Every district shall perform financial accounting and 
reporting operations on a financial management accounting and 
reporting system utilizing multi-dimensional accounts and 
records defined in accordance with the uniform financial 
accounting and reporting standards adopted by the state board 
pursuant to sections 121.90 to 121.92.  
    (b) By July 1, 1980, Every school district shall be 
affiliated with one and only one regional management information 
center.  This affiliation shall include at least the following 
components:  
    (1) The center shall provide reports to the department of 
education for the district to the extent required by the data 
acquisition calendar;  
    (2) The district shall use process every detailed financial 
transaction using, at the district's option, either the ESV-IS 
finance subsystem through the center to process every detailed 
financial transaction of the district or an alternative system 
approved by the state board. 
    Notwithstanding the foregoing, a district may process and 
submit its financial data to a region or the state in summary 
form if it operates an approved alternative system or 
participates in a state approved pilot test of an alternative 
system.  
    (c) The provisions of this subdivision shall not be 
construed to prohibit a district from purchasing services other 
than those described in clause (b) from a center other than the 
center with which it is affiliated pursuant to clause (b). 
    Districts operating an approved alternative system or 
participating in a state approved pilot test of an alternative 
financial system shall purchase finance system services from any 
region if the region of affiliation does not offer alternative 
system support services.  
    Sec. 11.  Minnesota Statutes 1984, section 121.936, 
subdivision 2, is amended to read: 
    Subd. 2.  [ALTERNATIVE MANAGEMENT INFORMATION SYSTEMS.] 
After July 1, 1980 A district may be exempted from the 
requirement in subdivision 1, clause (b) (2), if it receives the 
approval of the state board to use an alternative another 
financial management information system.  A district permitted 
before July 1, 1980, to submit its financial transactions in 
summary form to a regional management information center 
pursuant to subdivision 1 may continue to submit transactions in 
the approved form without obtaining the approval of the state 
board pursuant to this subdivision.  A district may be exempted 
from the requirement in subdivision 1a, clause (b) if it 
receives the approval of the state board to use an alternative 
fixed assets property management information system.  Any 
district desiring to use an alternative another management 
information system shall submit a detailed proposal to the state 
board, the ESV computer council and the regional management 
information center with which it is affiliated.  The detailed 
proposal shall include a statement of all costs to the district, 
regional management information center or state for software 
development or operational services needed to provide data to 
the regional management information center pursuant to the data 
acquisition calendar. 
    Sec. 12.  Minnesota Statutes 1984, section 122.541, is 
amended by adding a subdivision to read: 
    Subd. 7.  [MEETING LOCATION.] Notwithstanding any law to 
the contrary, the school boards of districts with an agreement 
under this section may hold a valid joint meeting at any 
location that would be permissible for one of the school boards 
participating in the meeting.  
    Sec. 13.  Minnesota Statutes 1984, section 122.86, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION.] In order to provide for 
comprehensive and coherent planning for the delivery of 
educational services pursuant to sections 122.86 to 122.89 
122.88, each educational cooperative service unit shall 
establish an educational planning task force.  In the event an 
area has not established an ECSU by September 1, 1977, the 
commissioner shall establish a task force for that area. 
    Sec. 14.  Minnesota Statutes 1984, section 123.36, 
subdivision 1, is amended to read: 
    Subdivision 1.  When funds are available therefor, the 
board may locate and acquire necessary sites of school houses or 
enlargements, or additions to existing schoolhouse sites by 
lease, purchase or condemnation under the right of eminent 
domain; it may erect schoolhouses thereon; it may erect or 
purchase garages for district owned school buses.  In any city, 
the school sites, when practicable, shall contain at least one 
block and if outside of any city, two acres; and when any 
schoolhouse sites shall contain less than such amount, the board 
may acquire other land adjacent to or near such site to make, 
with such site, all or part of such amount.  When property is 
taken by eminent domain by authority of this subdivision when 
needed by the school district for such purposes, the fact that 
the property so needed has been acquired by the owner under the 
power of eminent domain or is already devoted to public use, 
shall not prevent its acquisition by the school district.  The 
board may sell or exchange schoolhouses or sites, and execute 
deeds of conveyance thereof. 
    Sec. 15.  Minnesota Statutes 1984, section 123.58, is 
amended by adding a subdivision to read: 
    Subd. 11.  [ANNUAL MEETING.] Each ECSU shall conduct a 
meeting at least annually for districts that have entered into 
an agreement under section 471.59 and for districts 
cooperatively offering educational services to elementary and 
secondary pupils within the area served by the ECSU.  The 
purpose of the meeting shall be to discuss issues of mutual 
concern and to facilitate coordination and cooperation in 
providing educational opportunities.  The governing board formed 
under each cooperative agreement or each school board 
participating in a cooperative program, for programs having no 
governing board, shall designate at least one person to attend 
this meeting. 
    Sec. 16.  [123.75] [MISSING CHILDREN; VOLUNTARY 
FINGERPRINTING PROGRAMS.] 
    Subdivision 1.  [DEFINITION.] For purposes of this section: 
    (a) "child" means a person under 18 years old; and 
    (b) "missing child" means a child who has run away or is 
otherwise missing from the home or the care, custody, and 
control of his or her parents, guardian, legal custodian, or 
other person having responsibility for the child. 
    Subd. 2.  [AUTHORITY.] Each school district may develop a 
fingerprinting program for pupils and children who reside in the 
district.  The principal or chief administrative officer of a 
nonpublic school may develop a fingerprinting program for pupils 
of the school.  If developed, the program must be developed in 
conjunction with law enforcement agencies having jurisdiction 
within the school district or the place where the nonpublic 
school is located.  The law enforcement agencies must cooperate 
fully with the school district or the nonpublic school in the 
development of its fingerprinting program. 
    Subd. 3.  [LIMITATIONS AND PROCEDURES.] If developed, the 
fingerprinting program may be developed only for the purpose of 
assisting in the location and identification of missing 
children, and must be operated according to the following 
procedures: 
    (a) No child may be required to participate in the program. 
    (b) Before a child may participate in the program, the 
child's parents, guardian, legal custodian, or other person 
responsible for the child must authorize the child's 
participation by signing a form developed by the school district 
or the principal or chief administrative officer of the 
nonpublic school. 
     (c) Fingerprinting of children must be done by law 
enforcement personnel on fingerprint cards provided to the 
school district or nonpublic school by the commissioner of 
public safety or on fingerprint cards acquired elsewhere. 
    (d) The school must give the fingerprint card to the 
child's parents, guardian, legal custodian, or other person 
responsible for the child.  No copy of the fingerprint card may 
be retained by the law enforcement agency, school, or school 
district. 
    (e) The child's name, sex, hair and eye color, height, 
weight, and date and place of birth must be written on the 
fingerprint card. 
    School districts and nonpublic schools that develop 
fingerprinting programs under this section shall offer them on a 
periodic basis, and shall notify parents, guardians, legal 
custodians, and residents of the district or communities served 
by the school of the program and its purpose.  Notification may 
be made by means of memoranda, letters, newspaper articles, or 
other reasonable means. 
    Subd. 4.  [EVIDENTIARY USE OF FINGERPRINTS.] Fingerprints 
of a child obtained pursuant to this section are inadmissible as 
evidence against the child in any criminal or juvenile court 
proceeding. 
    Subd. 5.  [OTHER FINGERPRINTING PROGRAMS UNAFFECTED.] This 
section does not apply to fingerprinting programs for children 
that are provided by private organizations other than nonpublic 
schools, or governmental entities other than school districts. 
    Sec. 17.  Minnesota Statutes 1984, section 123.935, is 
amended by adding a subdivision to read: 
    Subd. 7.  [NONPUBLIC ADVISORY COMMITTEE.] By September 1, 
1985, the commissioner shall appoint a 15-member advisory 
committee on nonpublic schools.  The 15 members shall be 
representative of the various areas of the state and shall be 
knowledgeable about nonpublic schools.  The compensation, 
removal of members, filling of vacancies, terms and committee 
expiration date are governed by section 15.059.  The committee 
shall advise the commissioner and the state board on nonpublic 
school matters under this section, and when requested by the 
commissioner or the state board, on other nonpublic school 
matters. 
    Sec. 18.  Minnesota Statutes 1984, section 124.14, 
subdivision 4, is amended to read: 
    Subd. 4.  [FINAL DECISION AND RECORDS.] A reduction of aid 
under this section may be appealed to the state board of 
education and its decision shall be final.  Public schools shall 
at all times be open to the inspection of the state board, and 
the accounts and records of any district shall be open to 
inspection by the state auditor, the state board, or the 
commissioner for the purpose of audits conducted under this 
section.  Each district shall keep for a minimum of three years 
at least the following:  (1) identification of the annual 
session days held, together with a record of the length of each 
session day, (2) a record of each pupil's daily attendance, with 
entrance and withdrawal dates, and (3) identification of the 
pupils transported who are reported for transportation aid.  
    Sec. 19.  Minnesota Statutes 1984, section 124.19, 
subdivision 5, is amended to read: 
    Subd. 5.  [SCHEDULE ADJUSTMENTS.] (a) It is the intention 
of the legislature to encourage efficient and effective use of 
staff and facilities by school districts.  School districts are 
encouraged to consider both cost and energy saving measures.  
    (b) Notwithstanding the provisions of subdivision 1 or 4, 
any district, including a district operating a program pursuant 
to sections 120.59 to 120.68 120.67 or 129B.42 to 129B.47, may 
adjust the annual school schedule throughout the calendar year 
so long as the number of instructional hours in the year is not 
less than the number specified in the rules of the state board.  
    Sec. 20.  Minnesota Statutes 1984, section 124.76, 
subdivision 2, is amended to read:  
    Subd. 2.  [PUBLIC SALE EXCEPTION.] Public sale of tax and 
aid anticipation certificates of indebtedness according to 
subdivision 1 shall not be required (1) if the proposed 
borrowing is in an amount less than $400,000, and if the sum of 
all outstanding tax and aid anticipation certificates issued by 
the board within the preceding six months does not exceed 
$400,000 or, (2) if the certificates mature no later than 12 
months after their date of issue.  If no public sale is held, 
the certificates of indebtedness must may be sold in accordance 
with the most favorable of two or more proposals solicited 
privately or the interest rates may be determined by direct 
negotiation.  
    Sec. 21.  Minnesota Statutes 1984, section 125.05, is 
amended by adding a subdivision to read: 
    Subd. 6.  [LIMITED PROVISIONAL LICENSES.] The board of 
teaching may grant provisional licenses, which shall be valid 
for two years, in fields in which licenses were not issued 
previously or in fields in which a shortage of licensed teachers 
exists.  A shortage shall be defined as a lack of or an 
inadequate supply of licensed personnel within a given licensure 
area in a school district that has notified the board of 
teaching of the shortage and has applied to the board of 
teaching for provisional licenses for that district's licensed 
staff. 
    Sec. 22.  Minnesota Statutes 1984, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [EMPLOYMENT IN SUPERVISORY POSITIONS.] 
Notwithstanding other law, a teacher, as defined in section 
179A.03, does not have a right to employment in a district as an 
assistant superintendent, as a principal defined in section 
179A.03, as a confidential or supervisory employee defined in 
section 179A.03, or in a position that is a promotion from the 
position currently held, based on seniority, seniority date, or 
order of employment by the district; provided that this 
provision shall not alter the reinstatement rights of an 
individual who is placed on leave from an assistant 
superintendent, principal or assistant principal, or supervisory 
or confidential employee position pursuant to chapter 125. 
    Sec. 23.  Minnesota Statutes 1984, section 125.60, 
subdivision 3, is amended to read: 
    Subd. 3.  [REINSTATEMENT.] Except as provided in 
subdivisions 6a and 6b, a teacher on an extended leave of 
absence pursuant to this section shall have the right to be 
reinstated to a position for which the teacher is licensed at 
the beginning of any school year which immediately follows a 
year of the extended leave of absence, unless the teacher fails 
to give the required notice of intention to return or is 
discharged or placed on unrequested leave of absence or the 
contract is terminated pursuant to section 125.12 or 125.17 
while the teacher is on the extended leave.  The board shall not 
be obligated to reinstate any teacher who is on an extended 
leave of absence pursuant to this section, unless the teacher 
advises the board of the intention to return before February 1 
in the school year preceding the school year in which the 
teacher wishes to return or by February 1 in the calendar year 
in which the leave is scheduled to terminate.  The board shall 
notify the commissioner within 30 days of being notified that a 
teacher intends to return from an extended leave. 
    Sec. 24.  [471.634] [DEFINITION.] 
    For purposes of Laws 1985, chapter 144, section 1, the 
terms "municipal corporation" and "governmental subdivision," or 
instrumentality thereof, do not include school districts and 
other entities composed exclusively of school districts when 
school boards or school administrators are regulating school 
grounds, school facilities, school transportation services, 
school programs, or the conduct of students at any activities 
conducted under the direct or indirect supervision or control of 
the school board or administration. 
    Sec. 25.  Laws 1973, chapter 683, section 26, as amended by 
Laws 1981, chapter 358, article 6, section 40, is amended to 
read: 
    Subd. 2a.  [SCHOOL ADMINISTRATION; TRANSFER OF AUTHORITY.] 
The care, management, and control of the experimental school in 
Independent School District No. 309 is transferred from the 
Indian education committee as defined in subdivision 2, 
to vested in the White Earth reservation business committee 
tribal council.  The Indian education committee, as defined in 
subdivision 2, shall serve in an advisory capacity to the White 
Earth reservation business committee tribal council and may 
exercise the powers or duties delegated to it by the White Earth 
reservation tribal council.  For purposes of this section, 
"committee" means the White Earth reservation business committee 
tribal council.  The White Earth reservation business committee 
tribal council is eligible to receive federal aid to Indians 
pursuant to section 124.64.  Notwithstanding any law to the 
contrary, the experimental school shall be considered a public 
school. 
    Sec. 26.  Laws 1973, chapter 683, section 26, subdivision 
17, as amended by Laws 1975, chapter 432, section 88, as amended 
by Laws 1977, chapter 447, article VII, section 28, as amended 
by Laws 1981, chapter 358, article 6, section 42, is amended to 
read: 
    Subd. 17.  The provisions of This section shall expire is 
repealed July 1, 1985 1989.  At any time before that date the 
experimental school may be terminated upon unanimous vote of the 
officers of the committee and 30 days notice to the board of 
District No. 309, whereupon the board of District No. 309 shall 
resume the care, management, and control of the entire district 
on July 1 following.  Prior to December 1 of each year the 
committee shall submit to the legislature a report of the 
experimental school established by this section.  Such report 
shall document the success or failure of the experimental school.
    Sec. 27.  [REDUCTION IN SEVERANCE PAY ACCOUNT.] 
    By June 30, 1988, a district that has an amount in the 
appropriated fund balance for severance pay account in excess of 
the amount allowed by the uniform financial accounting and 
reporting standards shall eliminate the excess.  Each year 
one-fourth of the amount determined to be excess in fiscal year 
1985 shall be eliminated.  However, adjustments to the excess 
may be made each fiscal year to account for changes in the 
amount needed in the account. 
    Sec. 28.  [CONSOLIDATION CONSTRUCTION FEASIBILITY STUDY.] 
    The department of education shall study the feasibility of 
and develop alternate methods of financing construction costs 
for a secondary school based on the assumption that more than 
three school districts would consolidate.  The study shall 
include the effect on district property taxes, an appropriate 
share paid by the school districts, credits paid to school 
districts, other local sources of funding, and any other 
financing methods.  The department shall report its 
recommendations to the education committees of the legislature 
by January 15, 1986. 
    Sec. 29.  [K-3 CLASS SIZE STUDY.] 
    The department of education shall conduct a study on 
reducing certain class sizes of grades kindergarten through 
three to an optimum pupil-teacher ratio in Minnesota.  The study 
shall address at least the following:  determining the number of 
teachers which would be required to reduce class sizes to an 
optimum pupil-teacher ratio in those grades in the areas of 
reading, writing, and mathematics; examining the feasibility of 
individual school districts to reduce class sizes to an optimum 
pupil-teacher ratio; and evaluating the existing research on the 
impact of reducing class sizes. 
    Sec. 30.  [STUDY OF PROGRAMS TO MEET THE DEVELOPMENTAL 
NEEDS OF YOUNG CHILDREN.] 
    The department of education shall study programs designed 
to meet the developmental needs of young children.  The study 
shall:  
    (1) Analyze the feasibility of providing full-day 
kindergarten and programs for aiding the developmental growth of 
four-year old children.  It shall include recommendations 
relating to the purpose, possible curricula, staff and licensure 
requirements, and costs of providing these programs.  
    (2) Examine how programs for full-day kindergarten and 
four-year old children could be coordinated with existing 
services, including early childhood family education programs, 
early and periodic health screening, programs for handicapped 
children from birth to age three, community education, and 
special education for four and five-year old children.  
    (3) Examine the child care needs of parents whose children 
are ages four to 12 and provide recommendations relating to how 
these needs could be met by public schools. 
    By February 1, 1986, the department shall report the 
results of the study and its recommendations to the education 
committees of the legislature. 
    Sec. 31.  [VOTER APPROVAL REQUIREMENT EXEMPTION.] 
    Notwithstanding Minnesota Statutes 1984, section 475.58, 
subdivision 1, special school district No. 1, Minneapolis, and 
independent school district No. 633, Lamberton, may accept 
interest free loans from the federal government, in the amounts 
of $427,000 and $95,000 respectively, under the Federal Asbestos 
School Hazard Abatement Act, without obtaining the approval of a 
majority of the voters in the respective districts. 
    Sec. 32.  [INSTRUCTIONS TO REVISOR.] 
    The revisor of statutes shall include in the supplement to 
Minnesota Statutes 1984 and in subsequent editions and 
supplements, and edit as authorized by law, the uncoded 
permanent law relating to the experimental school established by 
Laws 1973, chapter 683, section 26. 
    Sec. 33.  [REPEALER.] 
    Subdivision 1.  [JULY 1, 1985.] Minnesota Statutes 1984, 
sections 120.68; 121.11, subdivision 7a; 122.84; 122.85; 122.89; 
123.80, subdivisions 2 and 3; and 125.05, subdivision 5, are 
repealed. 
    Subd. 2.  [EFFECT OF CERTAIN REPEALS.] Rules adopted 
according to provisions of Minnesota Statutes that are repealed 
in subdivision 1 remain in effect, under Minnesota Statutes, 
section 121.11, until amended or repealed by the state board of 
education.  
    Sec. 34.  [EFFECTIVE DATES.] 
    Sections 7, 8, 20, 22, and 27 are effective the day 
following final enactment.  Section 24 is effective August 1, 
1985.  
    Section 23 is effective July 1, 1986. 

                                ARTICLE 8

                 TECHNOLOGY AND EDUCATIONAL IMPROVEMENT
    Section 1.  Minnesota Statutes 1984, section 121.608, is 
amended to read: 
    121.608 [INSTRUCTIONAL EDUCATIONAL EFFECTIVENESS PLAN.] 
    The commissioner of education shall develop a comprehensive 
statewide plan for maintaining and improving instructional 
educational effectiveness in the schools.  The plan shall 
encourage implementation of school educational effectiveness 
strategies based on research findings in the area, develop 
inservice training models programs for school district staff, 
integrate developments in educational technology with classroom 
instruction models, and develop a mechanism for establishing a 
statewide network to coordinate and disseminate information on 
research in instructional educational effectiveness.  The 
commissioner may employ consultants and specialists to assist in 
the development of the plan, and, to the extent possible, shall 
utilize the information provided by the planning, evaluation, 
and reporting process and the statewide assessment program.  The 
plan shall be revised as necessary.  
    Sec. 2.  Minnesota Statutes 1984, section 121.609, is 
amended to read: 
    121.609 [INSTRUCTIONAL EDUCATIONAL EFFECTIVENESS TRAINING 
INSTRUCTION.] 
    Subdivision 1.  [ADVISORY TASK FORCE; PROGRAM 
MODEL IMPLEMENTATION.] The commissioner of education shall 
appoint an advisory task force to assist the department of 
education, in cooperation with the educational cooperative 
service units, in developing an implementation model program for 
training providing in-service instruction to school district 
staff in instructional educational effectiveness.  The training 
in-service program model shall be based on established 
principles of instructional design and the essential elements of 
effective instruction as determined by educational research.  
The training in-service program model shall take into account 
the diverse needs of the school districts due to such factors as 
district size and location, and shall be structured to 
facilitate regional delivery of the training in-service 
instruction through the educational cooperative service units.  
    Subd. 2.  [PILOT TESTING RESEARCH AND DEVELOPMENT OF 
TRAINING MODEL IN-SERVICE PROGRAM.] Between January 1, 1984, and 
June 30, 1985, The commissioner shall administer a pilot 
research and development program of the instructional 
educational effectiveness training models which shall be 
implemented in at least 20 pilot sites throughout the 
state in-service.  The advisory task force established in 
subdivision 1 of this section may recommend modifications in the 
training models in-service program as necessary.  
    Subd. 3.  [EVALUATION AND REPORT.] The commissioner shall 
pay an provide for independent evaluator to conduct an 
evaluation of the effectiveness of this section.  A preliminary 
evaluation, including a sample survey of district personnel 
trained at the pilot sites, shall be completed by January 1, 
1985.  The evaluation results shall be reported to the education 
committees of the legislature by January 15 of each year. 
    The commissioner, with the assistance of the advisory task 
force, shall develop a long-term evaluation instrument for use 
at the pilot research and development sites and other districts 
utilizing the instructional educational effectiveness models 
program.  The long-term evaluation instrument shall include a 
method for measuring student achievement.  
    Subd. 4.  [REGIONAL SERVICES.] The department of education 
shall contract with educational cooperative service units or 
other regional educational service agencies to provide 
assistance to the school districts in an educational cooperative 
service unit region in implementing instructional educational 
effectiveness models.  In selecting an agency to provide 
assistance to the school districts, the department shall 
consider such factors as support of the proposal by the 
participating school districts and the extent to which the 
proposal provides for participation by school district staff.  
If more than one agency submits a proposal to provide services 
to school districts within an educational cooperative service 
unit region, the department shall encourage the agencies to 
develop a joint proposal.  
    Subd. 5.  [INSTRUCTIONAL EDUCATIONAL EFFECTIVENESS TRAINING 
IN-SERVICE.] Utilizing the statewide plan developed pursuant to 
section 121.608 and the regional support services authorized in 
subdivision 4 and based on the research from the educational 
effectiveness in-service programs authorized in subdivision 2, 
the department of education shall provide instructional 
educational effectiveness training in-service instruction for 
school district staff.  The training in-service instruction 
shall be provided facilitated by building level leadership 
teams, as defined in the statewide plan developed pursuant to 
section 121.608.  The training in-service instruction shall 
include clarification of individual school missions, goals and 
expectations, enhancement of collaborative planning and 
collegial relationships among the building staff, improvement of 
instructional and organizational skills and instructional the 
climate of the school, and planning of staff development 
programs.  
    Sec. 3.  [121.611] [NONLICENSED COMMUNITY EXPERTS; 
VARIANCE.] 
    Subdivision 1.  [AUTHORIZATION.] Notwithstanding any law or 
state board of education rule to the contrary, the board of 
teaching may allow school districts to hire nonlicensed 
community experts to teach in the public schools on a limited 
basis according to this section. 
    Subd. 2.  [APPLICATIONS; CRITERIA.] The school district 
shall apply to the board of teaching for approval to hire 
nonlicensed teaching personnel from the community.  In approving 
or disapproving the district's application for each community 
expert, the board shall consider: 
    (1) the qualifications of the community person whom the 
district proposes to employ; 
    (2) the reasons for the district's need for a variance from 
the teacher licensure requirements; 
    (3) the district's efforts to obtain licensed teachers, who 
are acceptable to the school board, for the particular course or 
subject area; 
    (4) the amount of teaching time for which the community 
expert would be hired; 
    (5) the extent to which the district is utilizing other 
nonlicensed community experts under this section; 
    (6) the nature of the community expert's proposed teaching 
responsibility; and 
    (7) the proposed level of compensation to the community 
expert. 
    Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
approve or disapprove an application within 60 days of receiving 
it from a school district. 
    Sec. 4.  [121.918] [DEPARTMENT MANAGEMENT ASSISTANCE TO 
SCHOOL DISTRICTS.] 
    The department shall provide management assistance if 
requested by a district.  The assistance may include:  
    (1) developing data and assumptions for the district to use 
in setting priorities and goals and in considering management 
and organizational alternatives; and 
    (2) analyzing and assessing alternative methods of 
organization and management, including opportunities for 
coordination and cooperation with other districts, and assessing 
the relative costs and benefits of the alternatives. 
    Sec. 5.  Minnesota Statutes 1984, section 123.741, 
subdivision 6, is amended to read: 
    Subd. 6.  [REPORT.] By September 1 of each year, the local 
school board shall adopt a report which shall include the 
following:  
    (a) annual instructional goals which were addressed for 
that year in the planning, evaluation, and reporting process;  
    (b) appropriate evaluation of the annual instructional 
goals;  
    (c) the results of the professional staff evaluation 
including local assessment data obtained pursuant to section 
123.742, subdivision 2, and any additional appropriate test data;
    (d) the results of the consumer evaluation; and 
    (e) the annual school district improvement plans; and 
    (f) a plan for implementing an assurance of mastery program.
    Every other year the report shall include an evaluation of 
the assessment program programs pursuant to subdivision 7.  
    The school board shall disseminate the report to all 
residents of the district by publication in the local newspaper 
with the largest circulation in the district, by newsletter, or 
through the United States postal service.  The report shall be 
on file and available for inspection by the public.  A copy of 
the report which is disseminated to the community shall be sent 
to the commissioner of education by September 1 of each year.  
The school board shall provide a copy of the commissioner's 
response to the report to the curriculum advisory committee.  
All activities and reports pursuant to this section shall comply 
with chapter 13, and any other law governing data on individuals 
in school districts.  
    Sec. 6.  Minnesota Statutes 1984, section 123.741, 
subdivision 7, is amended to read: 
    Subd. 7.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
least once every two years the school board shall evaluate the 
testing program programs, using the following criteria:  
    (a) written objectives of the testing program programs;  
    (b) names of tests and grade levels tested; and 
    (c) utilization of test results; and 
    (d) implementation of assurance of mastery program.  
    Sec. 7.  Minnesota Statutes 1984, section 123.742, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TECHNICAL ASSISTANCE.] Insofar as 
possible, the department of education and educational 
cooperative service units shall make technical assistance for 
planning and evaluation available to school districts upon 
request.  The department shall collect the annual evaluation 
reports from local districts as provided in section 123.741, 
subdivision 5, and shall make this these data available upon 
request to any district seeking to use it for purposes of 
comparisons of student pupil performance.  If requested, the 
department of education shall provide technical assistance to a 
district developing assurance of mastery programs, achievement 
testing programs, competency testing programs, or other methods 
of measuring group or individual pupil progress. 
    Sec. 8.  Minnesota Statutes, section 123.742, is amended by 
adding a subdivision to read: 
    Subd. 1a.  [STATE CURRICULUM ADVISORY COMMITTEE; 
LEGISLATIVE REPORT.] The commissioner shall appoint an 11-member 
state curriculum advisory committee to advise the state board 
and the department on the planning, evaluation, and reporting 
process.  The committee shall consist of nine members, one 
appointed from each educational cooperative service unit, and 
two at-large members.  The committee shall include 
representation from the state board of education, parents, 
teachers, administrators, and school board members.  Each member 
shall be a present or past member of a school district 
curriculum advisory committee.  The committee shall provide 
information and recommendations on at least the following: 
    (1) department procedures for approving reports and 
disseminating information; 
    (2) exemplary planning, evaluation, and reporting processes;
and 
    (3) recommendations for improving the planning, evaluation, 
and reporting process. 
    By January 1 of each year, the commissioner shall prepare a 
report for the education committees of the legislature on the 
planning, evaluation, and reporting program, which shall include 
the recommendations of the state curriculum advisory committee. 
    Sec. 9.  Minnesota Statutes 1984, section 123.742, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [DISTRICT ASSESSMENTS.] As part of the planning, 
evaluation, and reporting process, each year a district shall, 
in at least three grades, conduct assessments among at least a 
sample of pupils in two curriculum areas.  One curriculum area 
shall be communication, mathematics, science, or social 
studies.  The second area shall be selected by the district.  
Assessments may not be conducted in the same curriculum area 
during two consecutive years.  The district may use tests from 
the assessment item bank, the local assessment option developed 
by the department, or other tests. 
    Sec. 10.  Minnesota Statutes 1984, section 123.742, 
subdivision 3, is amended to read: 
    Subd. 3.  [PARTICIPATION IN STATEWIDE ASSESSMENT PROGRAM.] 
Beginning in the 1984-1985 school year, Each school district 
shall participate in the statewide assessment sampling process 
at least once every three years to provide normative data.  Each 
year the department of education shall determine which districts 
shall participate and which curriculum areas shall be 
assessed in a given school year.  
    Sec. 11.  Minnesota Statutes 1984, section 123.742, is 
amended by adding a subdivision to read:  
    Subd. 3a.  [ASSURANCE OF MASTERY.] Each school board shall 
adopt a policy establishing a process to assure individual pupil 
mastery in communications and mathematics.  This process shall 
include at least the following: 
    (1) procedures, which may include multiple or separate 
criteria, for the evaluation and identification of nonspecial 
education pupils and pupils with limited English proficiency who 
are not making sufficient progress in the mastery of 
communications and mathematics; 
    (2) procedures for implementation in grades kindergarten to 
12, beginning in the 1986-1987 school year, and requiring 
evaluation of progress toward mastery at least once during 
grades K to 3, once during grades 4 to 6, once during grades 7 
to 9, and once during grades 10 to 12; 
    (3) procedures for parent conferences to establish an 
individualized remediation or modified instruction plan for each 
pupil who is not making sufficient progress toward mastery of 
communication or mathematic skills; and 
    (4) procedures which shall consider and address the special 
needs of handicapped pupils and pupils with limited English 
proficiency. 
    Sec. 12.  Minnesota Statutes 1984, section 123.742, 
subdivision 4, is amended to read: 
    Subd. 4.  [NEEDS OF HANDICAPPED PUPILS.] School boards are 
encouraged to consider the needs of handicapped students in 
determining the extent of their participation in the assessment 
programs in subdivisions 2 2a and 3.  The district policy may 
provide for modifications in the testing procedures for 
handicapped students.  
    Sec. 13.  Minnesota Statutes 1984, section 123.742, 
subdivision 5, is amended to read: 
    Subd. 5.  [ASSESSMENT ITEM BANK.] The department of 
education shall develop maintain an assessment item bank for the 
purpose of providing to provide assessment programs to 
individual districts which that are tailored to the specific 
educational objectives of the an individual school or district.  
Beginning in the 1984-1985 school year and each year thereafter, 
The department shall develop an item bank for at least two 
curriculum areas each year.  The department shall develop and 
maintain an item bank for at least ten different curriculum 
areas. 
    Sec. 14.  Minnesota Statutes 1984, section 123.742, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [ADDITIONAL TESTS.] The department shall 
maintain additional tests for at least three grade levels.  The 
tests shall be designed to measure the progress of individual 
pupils toward the core curriculum areas of communications, 
mathematics, science, and social studies.  The department shall 
make the tests available for a district to use, at the option of 
the district, as a part of the department's local assessment 
program. 
    Sec. 15.  Minnesota Statutes 1984, section 123.742, is 
amended by adding a subdivision to read: 
    Subd. 9.  [MODEL LEARNER EXPECTATIONS.] The department 
shall develop and maintain sets of model learner expectations.  
The department shall make the expectations available for a 
district, for assistance purposes, to use at the option of the 
district.  The expectations shall be for pupils in kindergarten 
to grade 12 in at least the core curriculum areas of 
communication, mathematics, science, and social studies.  The 
department shall consult with each of the public post-secondary 
educational systems and with the higher education coordinating 
board in developing model learner expectations appropriate for 
entrance into post-secondary institutions. 
    Sec. 16.  Minnesota Statutes 1984, section 123.7431, is 
amended to read: 
    123.7431 [AID FOR PLANNING, EVALUATION, AND REPORTING 
PROCESS.] 
    Subdivision 1.  [ELIGIBILITY.] Each school district which 
completes the planning, evaluation, and reporting process 
pursuant to the requirements of sections 123.741 and 123.742 and 
which receives approval from the commissioner of education is 
eligible to receive state aid each year.  An eligible school 
district shall receive $1 times the number of pupils in average 
daily membership for the applicable prior school year.  No 
district which is eligible for aid shall receive less than 
$1,500.  
    Subd. 2.  [PAYMENT OF AID.] The department of education 
shall pay aid to a district within 30 days of approving the 
district's planning, evaluation, and reporting 
process.  However, no aid may be paid prior to July 1 in any 
calendar year.  
    Sec. 17.  Minnesota Statutes 1984, section 124.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSTRUCTIONAL TIME.] Every district which 
receives special state aid shall maintain school in session or 
provide instruction in other districts, in state university 
laboratory school or in the university laboratory school, for at 
least 175 days, not including summer school, or the equivalent 
in a district operating a flexible school year program.  A 
district which holds school for the required minimum number of 
days and is otherwise qualified is entitled to special state aid 
as provided by law.  If school is not held for the required 
minimum number of days, special state aid shall be reduced by 
the ratio that the difference between 175 days and the number of 
days school is held bears to 175 days, multiplied by 60 percent 
of the product of the foundation aid formula allowance times its 
pupil units for that year.  However, districts maintaining 
school for fewer than the required minimum number of days do not 
lose special state aid, if the circumstances causing loss of 
school days below the required minimum number of days are beyond 
the control of the board and, if proper evidence is submitted 
and a good faith attempt made to make up time lost due to these 
circumstances.  The loss of school days resulting from a lawful 
employee strike shall not be considered a circumstance beyond 
the control of the board.  Days devoted to teachers' institutes 
or other meetings authorized or called by the commissioner may 
not be included as part of the required minimum number of days 
of school.  Not more than five days may be devoted to 
parent-teacher conferences or, teachers' workshops, or other 
staff development opportunities as part of the required minimum 
number of days, except that, for kindergarten classes, not more 
than ten days may be devoted to parent-teacher conferences or, 
teachers' workshops, or other staff development opportunities as 
part of the required minimum number of days. 
    Sec. 18.  Minnesota Statutes 1984, section 125.03, is 
amended by adding a subdivision to read:  
    Subd. 5.  "Teachers" for the purpose of examination means 
persons applying for initial teaching licenses or persons 
applying for additional fields of licensure to provide direct 
instruction to pupils in prekindergarten, elementary, secondary, 
and special education programs.  It does not mean persons 
applying for licenses as supervisory or support personnel nor 
does it mean librarians, school social workers, school 
psychologists, audio-visual directors or coordinators, or media 
generalists or supervisors. 
    Sec. 19.  Minnesota Statutes 1984, section 125.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [QUALIFICATIONS.] The authority to license 
teachers as defined in section 125.03, subdivision 1, is vested 
in the board of teaching except that the authority to license 
supervisory and support personnel as defined in section 125.03, 
subdivision 4, is vested in the state board of education.  
Licenses shall be issued to such persons as the board of 
teaching or the state board of education finds to be competent 
for their respective positions.  For teachers, as defined in 
section 125.03, subdivision 5, competency includes successful 
completion of an examination of academic knowledge in each field 
of licensure and, for persons applying for initial licenses, an 
examination of skills in reading, writing, and mathematics.  
Qualifications of teachers and other professional employees 
except supervisory and support personnel shall be determined by 
the board of teaching under the rules which it promulgates.  
Licenses under the jurisdiction of the board of teaching shall 
be issued through the licensing section of the department of 
education.  Licenses under the jurisdiction of the state board 
of education shall be issued through the licensing section of 
the department of education.  
    Sec. 20.  Minnesota Statutes 1984, section 125.182, 
subdivision 1, is amended to read: 
    Subdivision 1.  For the purpose of sections 125.181 to 
125.185, the terms defined in this section shall have the 
meanings ascribed to given them, unless another meaning is 
clearly indicated. 
    Sec. 21.  Minnesota Statutes 1984, section 125.185, 
subdivision 4, is amended to read: 
    Subd. 4.  The board shall develop and create adopt rules 
for the licensure of to license public school teachers and 
interns, and from time to time it shall revise or supplement the 
rules for licensure of public school teachers subject to the 
provisions of chapter 14.  It shall be the duty of The board 
shall adopt rules for examination of teachers, as defined in 
section 125.03, subdivision 5.  The rules may allow for 
completion of the examination of skills in reading, writing, and 
mathematics before entering or during a teacher education 
program.  The board to establish shall adopt rules for the 
approval of to approve teacher education programs; provided. 
These rules shall encourage teacher educators to obtain periodic 
classroom teaching experience.  The board shall also grant 
licenses to interns and to candidates for original initial 
licenses and receive recommendations from local committees as 
established by the board for the renewal of teaching licenses, 
grant life licenses to those who qualify according to 
requirements established by the board, and suspend or revoke 
licenses pursuant to sections 125.09 and 214.10.  
Notwithstanding any law or rule to the contrary, the board shall 
not establish any expiration date for application for life 
licenses.  With regard to vocational education teachers the 
board of teaching shall adopt and maintain as its rules the 
rules of the state board of education and the state board of 
vocational technical education. 
    Sec. 22.  [126.56] [SUMMER SCHOLARSHIPS FOR ACADEMIC 
ENRICHMENT.] 
    Subdivision 1.  [ESTABLISHMENT.] A scholarship program is 
established to enable secondary students to attend summer 
programs sponsored by post-secondary institutions. 
    Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
scholarship, a student shall: 
    (1) be a resident of Minnesota; 
    (2) attend an eligible program; 
    (3) have completed at least one year of secondary school 
but not have graduated from high school; 
    (4) have earned at least a B average during the semester or 
quarter prior to application; and 
    (5) demonstrate need for financial assistance. 
    Subd. 3.  [FINANCIAL NEED.] Need for financial assistance 
shall be based on family income, family size, and special 
necessary expenditures of the family.  The higher education 
coordinating board shall determine the financial need of each 
pupil based on the actual charges made by the institution 
sponsoring the summer program and shall award scholarships 
within the limits of the appropriation for this section.  If the 
amount appropriated is insufficient to make a full award to each 
applicant, the board shall allocate the amount appropriated in 
the manner it determines.  Scholarships shall not be less than 
$100 or more than $1,000. 
    Subd. 4.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
only for an eligible program.  An eligible program shall be 
approved by the state board of education.  An eligible program 
shall be sponsored by a post-secondary institution that: 
    (1) is accredited by the North Central Association of 
Colleges; 
    (2) offers at least an associate or baccalaureate degree 
program approved under section 136A.65, subdivision 1; and 
    (3) is located in Minnesota. 
    An eligible program shall, as its primary purpose, provide 
academic instruction for student enrichment in curricular areas 
including, but not limited to, communications, humanities, 
social studies, social science, science, mathematics, art, or 
foreign language.  The program shall not be offered for credit 
to post-secondary students.  It shall not provide remedial 
instruction.  Additional requirements for eligibility may be 
established by the state board of education and the higher 
education coordinating board.  
    Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
assist the state board of education in approving eligible 
programs and shall assist the higher education coordinating 
board in planning, implementing, and evaluating the scholarship 
program.  The committee shall consist of eleven members, to 
include the executive director of the higher education 
coordinating board or a representative, the commissioner of 
education or a representative, two secondary school 
administrators and two secondary teachers appointed by the 
commissioner of education, the executive director of the 
academic excellence foundation, a private college representative 
appointed by the president of the Minnesota private college 
council, a community college representative appointed by the 
community college chancellor, a state university representative 
appointed by the state university chancellor, and a University 
of Minnesota representative appointed by the president of the 
University of Minnesota.  
    Subd. 6.  [INFORMATION.] The academic excellence foundation 
shall assemble and distribute information about scholarships and 
eligible programs.  It may seek nonstate funds to perform its 
duties.  
    Subd. 7.  [ADMINISTRATION.] The state board of education 
and the higher education coordinating board shall determine the 
time and manner for scholarship applications, awards, and 
program approval. 
    Subd. 8.  [EXEMPTION FROM RULEMAKING.] Sections 14.01 to 
14.47 do not apply to this section. 
    Sec. 23.  [126.70] [PLANNING FOR EXCELLENCE IN TEACHING AND 
CURRICULUM.] 
    Subdivision 1.  [DEVELOPMENT OF PLAN.] Each school district 
is encouraged to develop and adopt a written comprehensive plan 
for excellence in teaching and curriculum.  The plan shall be 
prepared in consultation with the curriculum advisory committee 
appointed according to section 123.741, subdivision 3.  
    Subd. 2.  [CONTENTS OF THE PLAN.] The plan may include: 
    (1) procedures the district will use to analyze and 
identify teaching and curricular needs, including the need for 
mentor teachers; 
    (2) short- and long-term curriculum and staff development 
needs; 
    (3) integration with in-service and curricular efforts 
already in progress; 
    (4) goals to be achieved and the means to be used; 
    (5) procedures for evaluating progress; 
    (6) whether the school board intends to offer contracts 
under the excellence in teaching program; and 
    (7) integration of areas listed under section 24. 
    Subd. 3.  [EXEMPLARY PLANS.] In consultation with the 
educational effectiveness advisory task force, advisory 
committee on technology in education, educational cooperative 
service units, and other appropriate agencies, the department of 
education shall develop exemplary plans by November 30, 1985, 
for districts to use in developing their plans.  The exemplary 
plans shall include a description of methods to provide a link 
between preservice teacher education and employment as a 
teacher, to reduce the attrition of new teachers, to create a 
career development option for experienced teachers, and to 
improve educational effectiveness in the schools. 
    Sec. 24.  [126.71] [EXCELLENCE IN TEACHING AND CURRICULUM.] 
    A school board may implement a plan for excellence in 
teaching and curriculum for any of the following purposes: 
    (1) to provide educational effectiveness instruction 
according to section 121.609; 
    (2) to provide in-service education for elementary and 
secondary teachers to improve the use of technology in education;
    (3) to provide subject area in-service education 
emphasizing the academic content of curricular areas determined 
by the district to be a priority area; 
    (4) to use experienced teachers, as mentors, to assist in 
the continued development of new teachers; 
    (5) to increase the involvement of parents, business, and 
the community in education; 
    (6) for experimental delivery systems; 
    (7) for in-service education to increase the effectiveness 
of principals and administrators; 
    (8) for in-service education or curriculum development for 
programs for gifted and talented pupils; 
    (9) for in-service education or curriculum development for 
cooperative efforts to increase curriculum offerings, as set 
forth in section 124.272; 
    (10) for improving curriculum, according to the needs 
identified under the planning, evaluation, and reporting process 
set forth in section 123.741;  
    (11) for in-service education and curriculum development 
designed to promote sex equity in all aspects of education, with 
emphasis on curricular areas such as mathematics, science, and 
technology programs; 
    (12) for in-service education or curriculum modification 
for handicapped pupils and low-achieving pupils; or 
    (13) for contracts for the excellence in teaching program 
as described in section 25. 
    Sec. 25.  [126.72] [EXCELLENCE IN TEACHING CONTRACTS.] 
    Subdivision 1.  [AUTHORIZATION.] As part of a program for 
excellence in teaching and curriculum, a school board may enter 
into short-term, limited contracts with classroom teachers 
employed by the district.  
    Subd. 2.  [PURPOSE.] The school board shall determine the 
needs of its classroom teachers and the need for changes in its 
curriculum.  In determining these needs, the school board shall 
obtain recommendations from classroom teachers, staff 
responsible for curriculum, and the curriculum advisory 
committee.  It shall consider assessment results, other test 
results, the need for mentor teachers, and the district 
improvement plan portion of the report adopted according to 
section 123.741, subdivision 6.  Contracts executed under this 
section shall relate directly to the identified needs. 
    Subd. 3.  [SELECTION COMMITTEE.] A committee of six members 
appointed by the school board shall recommend teachers to 
receive contracts.  Three members of the committee shall be 
classroom teachers.  Three members shall be administrators, 
parents, members of the school board, or members of the 
community.  The committee shall consider only classroom teachers 
who have background, knowledge, or expertise needed to perform 
duties in the areas of need identified by the school board. 
Years of service in the district shall not be a factor for 
consideration by the committee.  No teacher shall have a right 
to a contract under this section based on seniority or order of 
employment in the district.  The committee shall recommend to 
the school board names of individual teachers.  The number of 
individual teachers recommended shall be approximately the 
number designated by the school board to meet the identified 
needs.  The school board may award contracts to any of the 
recommended teachers but not to any others.  The board may 
request the committee to recommend additional names of teachers. 
    Subd. 4.  [SHORT-TERM, LIMITED CONTRACTS.] Contracts 
executed under this section shall provide classroom teachers any 
one or a combination of the following: 
    (1) released time during the school day; 
    (2) additional hours in a school day; or 
    (3) additional days or weeks of employment during the 
summer. 
Contracts executed under this section shall terminate within one 
year of the date of execution.  During the term of a contract 
under this section a teacher may be discharged for cause from 
duties under this contract; a hearing shall be held on the 
discharge upon request of the teacher.  A teacher has no rights 
in a subsequent year to a contract under this subdivision. 
    Subd. 5.  [APPLICATION OF OTHER LAWS.] The provisions of 
section 125.12 or 125.17 shall not apply to initial awards, 
renewal, or termination of contracts under this section.  The 
provisions of this section concerning short-term, limited 
contracts shall not be construed to alter any aspect of other 
contracts executed by a school board. 
    Subd. 6.  [REPORT.] Each district awarding contracts under 
this section is encouraged to submit a report to the 
commissioner of education.  The report shall indicate the number 
of contracts awarded, whether duties are to be performed before, 
during, or after the school day or during the summer, the total 
cost of all contracts, and a general description of the duties.  
The statement shall also describe how the recommendations 
required by subdivision 2 were obtained.  Any problems 
associated with implementing this section may be included. 
     Sec. 26.  [126.80] [CITATION.] 
     Section 27 may be cited as "the research, planning, and 
development act." 
    Sec. 27.  [126.81] [EXEMPLARY TEACHER EDUCATION PROGRAM 
GRANTS.] 
    Subdivision 1.  [PURPOSE.] The legislature recognizes that 
research, planning, and development is important in maintaining 
and improving the quality of education in Minnesota.  The 
purpose of this section is to support research, planning, and 
developing alternative educational practices within teacher 
education institutions. 
    Subd. 2.  [GRANTS.] The board of teaching shall award at 
least three grants to public post-secondary institutions to 
develop exemplary teacher education programs.  The majority of 
grants shall be awarded for programs that are conducted jointly 
by an approved teacher education institution and one or more 
school districts.  
    Subd. 3.  [CONSULTATION WITH HECB.] The board of teaching 
shall consult with the higher education coordinating board on 
the procedures for awarding grants and on the proposals 
submitted pursuant to this section.  
    Subd. 4.  [PROCEDURE.] The board of teaching shall 
establish a procedure to apply for grants.  Grants shall be 
awarded by January 1, 1986, and may be for fiscal years 1986 and 
1987 or fiscal year 1987.  To the extent possible, the grants 
awarded shall represent a broad range of proposals.  
    Subd. 5.  [ELIGIBILITY.] Proposals must be designed to 
prepare college graduates to teach through structural 
internships in participating districts or other methods.  To be 
eligible for a grant, a proposal must include:  
    (1) a learning-teaching program compatible with research in 
child development and teacher effectiveness; 
    (2) a description of how the program relates to sections 
129B.45, 129B.46, and 129B.47; and 
    (3) a plan for integrating the educational needs of special 
education pupils into the program.  
    Subd. 6.  [EVALUATION AND DISSEMINATION.] The board of 
teaching, in consultation with the higher education coordinating 
board, shall provide evaluation of programs that receive grants. 
The board of teaching and the higher education coordinating 
board shall provide for dissemination of the evaluation results 
and program models.  This information shall be made available to 
all licensed teachers and all post-secondary students in teacher 
education programs. 
    Sec. 28.  Minnesota Statutes 1984, section 129B.35, is 
amended to read: 
    129B.35 [REGIONAL COORDINATORS.] 
    The Minnesota educational computing consortium department 
of education shall contract to provide regional instructional 
computing coordinators with expertise in the use of technology 
in education.  The Minnesota educational computing consortium 
and the department of education and school districts within an 
ECSU region shall agree on the services to be provided by the 
regional coordinators.  Among other responsibilities, the 
regional coordinators shall serve as onsite consultants to 
districts participating in attempting to implement recently 
approved technology utilization planning plans and inservice 
training education. 
    Sec. 29.  Minnesota Statutes 1984, section 129B.36, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SITE DESIGNATION.] By January 15, 
1984 July 1, 1985, the state board commissioner, in consultation 
with the advisory committee, shall designate from eight to ten 
districts as which of the existing technology demonstration 
sites and award each district a grant for use during the 
1983-1984 and 1984-1985 school years are eligible for 
continuation grants for use during the 1985-1986 and 1986-1987 
school years.  A site that does not receive a continuation grant 
under this subdivision may retain its designation as a 
technology demonstration site during the 1985-1986 and 1986-1987 
school years to improve its opportunities to obtain funding from 
private or other public sources.  The commissioner, in 
consultation with the advisory committee, shall determine the 
level of funding for each site.  A grant shall be at least 
$125,000 but not more than $175,000.  $125,000 of each grant may 
be used to continue existing operations.  Any grant amount 
exceeding $125,000 may be used for the expenses of expanded 
efforts already planned or underway at the site.  Grantees must 
continue matching the grant award in the manner agreed for the 
period from July 1, 1983, to June 30, 1985. 
    Sec. 30.  Minnesota Statutes 1984, section 129B.36, 
subdivision 4, is amended to read: 
    Subd. 4.  [GRANT AWARDS.] Applications for grants shall be 
submitted to the state board commissioner by December 1, 1983 
August 1, 1985, in the form and manner prescribed by the 
department.  Grants shall be awarded by January 15, 1984 
September 1, 1985.  
    Sec. 31.  Minnesota Statutes 1984, section 129B.36, 
subdivision 5, is amended to read: 
    Subd. 5.  [RECIPIENT DUTIES AND USE OF MONEY.] A district 
selected for a grant shall work cooperatively with the advisory 
committee, department of education, Minnesota educational 
computing consortium, higher education institutions in the area, 
and business and industry, as appropriate.  A district selected 
for a grant shall have a technology utilization plan according 
to section 129B.33.  The district shall conduct at least one 
workshop four workshops each school year of the grant to 
demonstrate to other districts and interested parties its use of 
technology in education.  Grant money may be used for equipment, 
consultants, curriculum development, and teacher training 
education.  
    Sec. 32.  Minnesota Statutes 1984, section 129B.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LIST.] By January 1, 1984, The department 
of education shall compile, publish, and distribute to districts 
a list of high quality courseware packages for use in public 
elementary and secondary schools.  Every six months thereafter, 
the department shall supplement the list with recently evaluated 
materials.  
    Sec. 33.  [129B.375] [COURSEWARE INTEGRATION CENTERS.] 
    The commissioner of education shall establish educational 
courseware integration centers to provide (1) access for 
teachers to major exemplary courseware, (2) opportunities for 
teachers to become familiar with a variety of technology 
resources, and (3) assistance in integrating technology 
materials into the curriculum. 
    Sec. 34.  Minnesota Statutes 1984, section 129B.38, is 
amended to read: 
    129B.38 [SUBSIDY FOR PURCHASE OF COURSEWARE PACKAGES.] 
    Subdivision 1.  [AID AMOUNT.] A district that purchases or 
leases courseware packages that qualify as high quality 
according to section 129B.37 shall receive state aid.  The aid 
shall be equal to the lesser of:  
    (a) $1.60 $l.00 times the number of pupils in average daily 
membership for the 1982-1983 1984-1985 school year; or 
    (b) 25 percent of the actual expenditures of the district 
for purchase or lease of the courseware packages between January 
1, 1984 July 1, 1985, and May 31, 1985 1987. 
    Subd. 2.  [AID PAYMENT APPLICATIONS.] Appplications 
Applications for aid shall be submitted in the form and manner 
prescribed by the department.  Payment of aid shall be made by 
July 31, 1984, for applications received by June 30, 1984.  
Payment of aid shall be made by June 30, 1985, for applications 
received between July 1, 1984, and May 31, 1985.  
    Sec. 35.  Minnesota Statutes 1984, section 129B.39, is 
amended to read: 
    129B.39 [PURCHASE OF COURSEWARE PACKAGE DUPLICATION 
RIGHTS.] 
    Rights to duplication of courseware packages may be 
purchased, and volume purchase agreements may be established by 
the department of education, if the department determines that 
the courseware packages qualify as high quality according to 
section 129B.37, and if the courseware packages are available to 
the state at a lower cost than if purchased by school districts 
individually.  The department shall make the courseware packages 
available to the Minnesota educational computing consortium for 
distribution to districts contract with any company that submits 
the lowest bid and that has the capability to duplicate and 
distribute courseware packages obtained by the department under 
this section.  The materials shall be available to districts 
without cost except for nominal costs of reproduction and 
distribution.  
    Sec. 36.  Minnesota Statutes 1984, section 129B.40, is 
amended to read: 
    129B.40 [COURSEWARE PACKAGE DEVELOPMENT.] 
    Subdivision 1.  [NEW COURSEWARE PACKAGES.] The Minnesota 
educational computing consortium, in consultation with the 
department of education, is authorized to develop and may 
contract with various organizations, commercial or nonprofit, 
for the design and development of courseware packages which will 
meet the needs of schools school districts and which otherwise 
are unavailable or too expensive for individual districts or the 
state to purchase.  The Minnesota educational computing 
consortium department may:  
    (a) contract with school districts, private entrepreneurs, 
and other public or private agencies for the development of a 
specified courseware package;  
    (b) assist entrepreneurs to develop their own ideas for 
courseware packages that could be used in school districts, by 
providing funds for that purpose;  
    (c) secure copyrights for those materials in which it has a 
whole or part interest;  
    (d) sell developed contract to distribute courseware 
packages at cost to school districts in Minnesota and at 
commercial rates elsewhere at cost under section 129B.39; and 
    (e) sell or contract for the marketing of courseware 
packages.  
    The department of education shall evaluate whether the 
courseware packages qualify as high quality according to the 
criteria and procedures established in section 129B.37. 
    Courseware packages developed according to this subdivision 
shall become the property of the Minnesota educational computing 
consortium state.  Revenue from the sale of these courseware 
packages shall be annually appropriated from the general fund to 
the department of education and shall be used to develop 
additional courseware packages according to this section and to 
evaluate the other commercial courseware under section 129B.37.  
    Subd. 2.  [DISTRIBUTION.] The Minnesota educational 
computing consortium may Any company with which the department 
contracts to develop courseware packages must sell those 
courseware packages to Minnesota school districts at cost and 
may sell to school districts in other states and to the general 
public at commercial rates.  Each contract with a developer who 
shares in the profits of distribution shall include a provision 
requiring sale of the courseware packages at cost to Minnesota 
school districts.  
    Sec. 37.  [129B.61] [MASTERY LEARNING THROUGH 
INDIVIDUALIZED LEARNING PLANS ACT.] 
    Sections 38 to 42 may be cited as the "mastery learning 
through individualized learning plans act." 
    Sec. 38.  [129B.62] [LEGISLATIVE FINDINGS; PURPOSE.] 
    The legislature finds that mastery learning is a process 
for managing learning that enhances mastery of clearly defined 
educational objectives for all pupils, because all pupils have 
the capacity to achieve defined levels of mastery with 
appropriate time and instruction.  The legislature is committed 
to the goal of providing optimal educational outcomes in reading 
through mastery learning, using individualized learning plans, 
and encouraging parental involvement.  The legislature 
recognizes that, because of recent developments, technology 
exists to assist teachers in managing a mastery learning system 
in reading.  The legislature further recognizes that reading is 
a cognitive skill upon which most subsequent learning is based 
and that individual learner characteristics need not necessarily 
be a limitation on that learner's level of mastery of this basic 
skill.  Therefore, the purposes of this legislation are to: 
    (1) offer mastery learning programs in reading that take 
into account the entry reading level of each pupil and provide 
individualized instruction and appropriate learning time based 
on that level; 
    (2) provide design models of individualized pupil learning 
plans that demonstrate the use of mastery management programs in 
reading; 
    (3) encourage continuous progress in reading that uses 
variable class-size groupings; 
    (4) recognize that sequential, measurable learning for all 
pupils can occur in a reading program that is planned for 
mastery, taught for mastery, and managed for mastery. 
    Sec. 39.  [129B.63] [GRADE LEVEL PARTICIPATION.] 
    The demonstration mastery learning reading programs that 
are designated under section 40 shall be available for pupils in 
grades kindergarten through three. 
    Sec. 40.  [129B.64] [SITE DESIGNATION.] 
    By March 15, 1986, the commissioner of education shall 
designate ten districts as demonstration sites for mastery 
learning through individualized learning plans.  By September 1, 
1986, the commissioner shall pay to each designated district a 
grant for use during the 1986-1987 school year. 
    Sec. 41.  [129B.65] [ADVISORY COMMITTEE.] 
    By August 15, 1985, the commissioner of education shall 
appoint a 15-member advisory committee to assist in the 
implementation of sections 38 to 42.  Representation on the 
advisory committee shall include a technology in curriculum 
specialist from the department of education, an instructional 
effectiveness specialist from the department of education, a 
reading specialist from the department of education, an 
assessment specialist from the department of education, two 
representatives from post-secondary teacher education programs, 
two school district reading curriculum specialists, a 
superintendent, an elementary school principal, two school board 
members, a parent, and two teachers.  Appointments to this 
advisory committee are not subject to section 15.0597.  
    Sec. 42.  [129B.66] [GRANTS; APPLICATION PROCESS.] 
    Subdivision 1.  [DEVELOPMENT OF PLAN.] Each school district 
is encouraged to develop and adopt a written plan for providing 
a program for mastery learning through individualized learning 
plans.  This plan shall be developed in consultation with the 
curriculum advisory committee for planning, evaluation, and 
reporting appointed pursuant to section 123.741, subdivision 3. 
    Subd. 2.  [PRELIMINARY PROPOSAL.] By September 15, 1985, 
each school district is encouraged to submit a brief preliminary 
proposal that indicates its intent to submit a detailed plan for 
implementing a program under this section.  The proposal shall 
include an outline of the district's plan and shall be on forms 
provided by the department of education. 
    Subd. 3.  [SELECTION OF FINALISTS; PLANNING AID.] By 
October 15, 1985, the commissioner, in consultation with the 
advisory committee, shall select 25 districts to submit detailed 
plans for implementing demonstration programs of mastery 
learning.  By November 1, 1985, the commissioner shall pay 
planning aid in the amounts of $1,000 to those selected 
districts with 600 pupil units or fewer, and $1,500 to those 
selected districts with more than 600 pupil units.  
    Subd. 4.  [DESIGN COMPONENTS.] The design of the programs 
developed under subdivision 3 shall demonstrate concise, 
measurable objectives in reading that clearly describe the 
criteria for mastery learning in reading.  Each program design 
must include a process for: 
    (1) identification of specific skills stated as measurable 
objectives; 
    (2) diagnostic pre-instruction assessment that determines 
each pupil's entry level of reading skills; 
    (3) development of an individualized plan for each 
participating pupil based on the diagnostic assessment, 
including the use of different instructional strategies and 
groupings to achieve the stated mastery of the measurable 
reading objectives; 
    (4) diagnostic assessment of progress during instruction 
and reteaching; and 
    (5) postinstruction assessment and evaluation to determine 
whether the identified reading skills have been mastered. 
    Subd. 5.  [MANDATORY PLAN COMPONENTS.] In addition to the 
components specified in subdivision 4, the program plan must 
include: 
    (1) sufficient allowance of time for teachers to identify 
specific skills and measurable objectives; 
    (2) sufficient allowance of time for the development or 
acquisition of a locally-developed, state-developed, or a 
commercially-developed mastery management system; 
    (3) a demonstration of how the participating school 
districts will reduce the size of reading classes by providing 
variable class size groupings; 
    (4) a demonstration of how a skill-based computerized 
management system can be used to develop individualized pupil 
learning plans in reading, diagnose individual pupil levels of 
learning, retest to ascertain progress toward mastery of 
objectives, and post test to determine the extent of final 
mastery of the objectives; 
    (5) a plan for in-service staff development that addresses 
all components of mastery learning, including parent 
communication and involvement and reteaching; and 
    (6) a procedure for involving parents in the process of 
developing individualized instruction plans for mastery in 
reading and keeping them informed of the progress of their 
children, as well as suggestions on how the parents can assist 
in the individualized learning plan. 
    Subd. 6.  [OPTIONAL COMPONENTS OF THE PLAN.] In addition to 
the required components specified in subdivisions 4 and 5, a 
district's plan may include: 
    (1) plans for all-day kindergarten; 
    (2) plans for coordination with early childhood family 
education programs; 
    (3) plans for expanding the program to grades four through 
six; 
    (4) plans to use volunteers; 
    (5) summer learning opportunities; 
    (6) a process for integrating the assessment of pupil 
affective levels; 
    (7) inclusion of foreign languages in the mastery reading 
program;  
    (8) plans for utilizing peer tutoring in the program; and 
    (9) an assessment of the feasibility of establishing a 
demonstration school to be operated by the school district for 
teacher education purposes. 
    Subd. 7.  [SELECTION CRITERIA.] The commissioner of 
education, in consultation with the advisory committee, shall 
establish selection criteria for approving plans, which shall be 
distributed to the school districts by November 1, 1985. 
    Subd. 8.  [GEOGRAPHIC DISTRIBUTION OF SITES.] To the extent 
possible, the selected sites shall be geographically distributed 
among urban, suburban, and rural areas.  Some of the sites 
selected shall be existing exemplary programs. 
    Subd. 9.  [DIFFERENTIATED STAFFING; TWO SITES.] At least 
two of the sites selected by the commissioner shall include 
plans for differentiated staffing that use master teachers and 
nonlicensed personnel, such as teachers' aides or 
paraprofessionals. 
    Subd. 10.  [APPROVAL OF PLANS; GRANT AWARDS.] The districts 
shall submit a plan and application for a grant by February 1, 
1986, in the form and manner prescribed by the department.  
    Subd. 11.  [EVALUATION OF SITES.] The commissioner of 
education shall make a preliminary evaluation of the designated 
sites and report to the education committees of the legislature 
on the results of the preliminary evaluation by February 1, 
1987.  By December 1, 1987, and each year thereafter, the 
commissioner of education shall submit a report evaluating the 
program to the education committees of the legislature. 
    Sec. 43.  [136A.044] [DATA ON TEACHER EDUCATION STUDENTS 
AND GRADUATES.] 
    The higher education coordinating board, in consultation 
with the board of teaching, shall publish annual data on the 
characteristics of students admitted to and graduating from 
teacher education programs.  The data shall be collected from 
teacher preparation institutions in Minnesota and, if possible, 
from institutions in adjacent states.  The board shall establish 
the reporting format in consultation with teacher education 
institutions and the board of teaching. 
    Sec. 44.  Laws 1983, chapter 314, article 8, section 11, is 
amended to read: 
    Sec. 11.  [ADVISORY COMMITTEE ON TECHNOLOGY IN EDUCATION.] 
    By July 1, 1983, A 15 member advisory committee on 
technology in education shall be appointed by the governor to 
assist in the implementation of sections 13 to 20 of this 
article.  Representation on the advisory committee shall include 
public school teachers and administrators, school boards, 
parents, department of education, Minnesota educational 
computing consortium, at least one regional management 
information center, council on quality education, higher 
education, including representatives from teacher education 
programs, and at least two members from high technology business 
and industry.  Advisory committee members shall be knowledgeable 
about the use of technology in elementary and secondary 
education.  The advisory committee shall terminate on June 
30, 1985 1987. 
    Sec. 45.  [PHASE-IN OF ITEM BANK DEVELOPMENT.] 
    The department of education shall add two curricular areas 
to the item bank each year.  The first curricular areas to be 
completed are communication, mathematics, science, and social 
studies.  
    Sec. 46.  [ADOPTING PROPOSED EXAMINATIONS.] 
    Subdivision 1.  [TIMING.] By September 1, 1986, the board 
of teaching shall adopt proposed examinations that have been 
validated by another state or reputable national testing 
organization.  
    Subd. 2.  [SUBJECTS FOR EXAMINATION.] Proposed examinations 
must be adopted for reading, writing, and mathematics skills to 
indicate whether an individual possesses competency in each 
skill tested.  
    Proposed examinations must be adopted for each field of 
licensure for which people are examined.  The examination must 
indicate whether an individual possesses the level of academic 
knowledge needed to teach in the field of licensure.  The 
examination must measure academic knowledge only and not 
teaching theories, methodology, skills of teaching, or other 
areas traditionally associated with a teacher education program. 
    Subd. 3.  [ADVISORY TASK FORCE.] The board shall appoint a 
task force of nine members to assist it in adopting and field 
testing proposed examinations.  All members of the task force 
shall be licensed teachers.  Compensation for members must be as 
provided in Minnesota Statutes, section 15.059, subdivision 3. 
The task force shall terminate June 30, 1987. 
    Subd. 4.  [CONSULTATION AND ASSISTANCE.] The board shall 
consult with the commissioner of education and the executive 
director of the higher education coordinating board about 
adopting and field testing proposed examinations.  The board may 
contract with consultants. 
    Subd. 5.  [FIELD TESTING.] The board shall field test 
proposed examinations with students in at least three teacher 
education programs.  The results must be used only to provide 
information for the board about the examinations. 
    Subd. 6.  [REPORT TO LEGISLATURE.] By January 15, 1986, the 
board shall report its progress to the education committees of 
the legislature.  By January 15, 1987, the board shall report to 
the education committees of the legislature about the process 
used to adopt examinations, how examinations were selected, the 
nature of the examinations, and the results of field testing. 
    Sec. 47.  [TEACHER EDUCATION PROGRAM RULES.] 
    The board of teaching shall review its rules to approve 
teacher education programs after the recommendations of a task 
force on teacher education programs, appointed in cooperation 
with the higher education coordinating board, have been 
completed. 
    Sec. 48.  [PLAN TO EVALUATE TEACHING SKILLS.] 
    By July 1, 1986, the board of teaching shall develop a plan 
to evaluate, before a continuing license is issued, the teaching 
skills of beginning teachers.  The board shall report its plan 
to the education committee of the legislature by January 15, 
1987. 
    Sec. 49.  [TECHNOLOGY SEX EQUITY EVALUATION.] 
    The evaluation of the technology demonstration sites shall 
include an analysis of the extent to which each project provides 
equal participation in courses and other training opportunities 
by both boys and girls.  This shall include, but not be limited 
to, collection of enrollment and participation data, the nature 
and quality of the participation, equipment usage, and 
information about in-service and staffing.  The department of 
education shall make recommendations about methods to increase 
and improve participation opportunities for all pupils. 
    Sec. 50.  [TECHNOLOGY DEMONSTRATION SITE LEVY.] 
    In 1985 a district that is a technology demonstration site 
may levy the lesser of an amount equal to 1 mill times the 
adjusted assessed valuation of the district or the unreimbursed 
cost of the expenses associated with the purchase of equipment 
and the operation of the site and additional program costs 
attributable to the site. 
    Sec. 51.  [TECHNOLOGY GRANT; MID-STATE EDUCATIONAL 
COOPERATIVE.] 
    $130,000 is appropriated in fiscal year 1986 from the 
general fund to the department of education to fund the 
technology demonstration site proposal of the mid-state 
educational cooperative.  The appropriation is available until 
June 30, 1987.  The grant is for use during the 1985-1986 and 
1986-1987 school years. 
    Sec. 52.  [TECHNOLOGY GRANT; FOUR SIBLEY COUNTY SCHOOL 
DISTRICTS.] 
    $150,000 is appropriated in fiscal year 1986 from the 
general fund to the department of education.  The appropriation 
is for a grant to the Arlington/Gaylord/Gibbon/Winthrop cable 
communications commission for an interactive educational 
interlink between independent school district Nos. 731, 732, 
733, and 735. 
    Sec. 53.  [TECHNOLOGY GRANT; SOUTHWEST MINNESOTA 
TELECOMMUNICATIONS PROJECT.] 
    Subdivision 1.  [APPROPRIATION.] $200,000 is appropriated 
in fiscal year 1986 from the general fund to the department of 
education to make a grant to the fiscal agent for the southwest 
Minnesota telecommunications project to complete a two-way 
interactive telecommunications system between the project's 
ten-member independent school districts to be used for the 
purposes in subdivision 2.  
    Subd. 2.  [PURPOSES.] The purposes of the two-way 
interactive television network to be funded by the grant in 
subdivision 1 are:  
    (1) to offer an expanded curriculum to member schools 
including courses for the academically talented; 
    (2) to allow the districts to be in compliance with 
proposed department of education curriculum requirements; 
    (3) to allow these districts to retain their independence 
and continue to enjoy the benefits that a school adds to the 
community; 
    (4) to provide a convenient method of sharing teachers and 
other resources across school district boundary lines without 
the waste of time and expense of teacher or pupil travel; 
    (5) to provide a vehicle for adult education through 
linkage with area AVTI's, Southwest State University, and 
Worthington Junior College; 
    (6) to provide a vehicle for in-service opportunities for 
teachers, other professionals, business leaders including 
farmers, and public officials; and 
    (7) to serve as a model for other school district 
cooperatives who may be interested in the construction and 
implementation of a similar system.  
    Sec. 54.  [TECHNOLOGY GRANT; SHERBURNE-WRIGHT EDUCATIONAL 
TECHNOLOGY COOPERATIVE.] 
    Subdivision 1.  [APPROPRIATION.] $130,000 is appropriated 
in fiscal year 1986 from the general fund to the department of 
education to make a grant to the fiscal agent for the 
Sherburne-Wright educational technology cooperative to complete 
a two-way interactive telecommunications system between the 
project's member school districts to be used for the purposes in 
subdivision 2.  
    Subd. 2.  [PURPOSES.] The purposes of the two-way 
interactive television network are:  
    (1) to offer an expanded curriculum to member schools 
including courses for the academically talented; 
    (2) to allow the districts to be in compliance with 
proposed department of education curriculum requirements; 
    (3) to allow these districts to retain their independence 
and continue to enjoy the benefits that a school adds to the 
community; 
    (4) to provide a convenient method of sharing teachers and 
other resources across school district boundary lines without 
the waste of time and expense of teacher or student travel; 
    (5) to provide a vehicle for adult education through 
linkage with area AVTI's and St. Cloud State University; 
    (6) to provide a vehicle for in-service opportunities for 
teachers, other professionals, business leaders including 
farmers, and public officials; and 
    (7) to serve as a model for other school district 
cooperatives who may be interested in the construction and 
implementation of a similar system.  
    Sec. 55.  [INTEGRATION CENTER DESIGNATION AND GRANTS.] 
    Subdivision 1.  [DESIGNATION.] The commissioner of 
education shall designate and award grants to four courseware 
integration centers established under section 33.  Two centers 
shall be model media centers at permanent locations and two 
shall be mobile centers.  The commissioner shall assure access 
by all regions of the state when designating centers. 
    Subd. 2.  [CRITERIA.] In consultation with the advisory 
committee, the department of education shall develop designation 
criteria for review by the commissioner.  The commissioner shall 
establish the criteria and distribute them to applicants by 
October 1, 1985.  Criteria must include at least the following: 
    (1) a currently existing exemplary program; 
    (2) a willingness to match the state grant; and 
    (3) a willingness to provide a model for integrating 
technology into the school curriculum. 
    Subd. 3.  [GRANTS.] The commissioner shall award a grant 
for each courseware integration center by January 15, 1986, for 
use during the 1986-1987 school year.  Applications for grants 
must be submitted to the commissioner by December 1, 1985, in 
the form and manner determined by the commissioner.  
    Subd. 4.  [RECIPIENT DUTIES AND USE OF MONEY.] A grant 
recipient shall work cooperatively with the advisory committee, 
the department of education, higher education institutions in 
the area, and business and industry, as appropriate.  The 
recipient, using grant money, shall conduct at least four 
workshops during the school year of the grant to demonstrate to 
districts and interested parties its use of techniques for 
curriculum integration and ongoing opportunities for courseware 
review. 
    Subd. 5.  [EVALUATION OF CENTERS.] The advisory committee 
shall evaluate the courseware integration centers.  It may 
contract with independent evaluators for this purpose. 
    Sec. 56.  [INDUSTRIAL TECHNOLOGY PROGRAM.] 
    The commissioner of education shall develop a curriculum 
for the industrial technology program that incorporates the 
instructional competencies found in secondary industrial arts 
and secondary vocational trade and industrial occupations 
programs. 
    Sec. 57.  [REPORT TO LEGISLATURE.] 
    By January 15, 1987, the department of education shall 
submit a report and recommendations to the legislature about the 
data and issues reported by school districts relating to teacher 
contracts for the excellence in teaching and curriculum program. 
    Sec. 58.  [USE OF 1985 SUMMER REVENUE.] 
    Notwithstanding any law to the contrary, a district may use 
the 1985 summer educational improvement revenue allowance during 
the school year as well as during the summer.  
    Sec. 59.  [129B.67] [COMPUTERIZED MASTERY MANAGEMENT 
SYSTEM.] 
    The department of education shall develop, contract for the 
development, or purchase the state rights to a computerized 
mastery management system that may be utilized for 
individualized learning plan models to be implemented under 
sections 38 to 42.  The computer models shall have a common 
management system and be able to utilize several banks of 
learner outcomes and objectives that reflect content found in 
major textbooks.  The department shall also develop, contract 
for the development, or purchase the state rights to support and 
resource materials to be used in conjunction with the 
computerized mastery management system for reading.  In future 
years, the department is encouraged to develop and acquire a 
similar system and supporting materials for mathematics. 
    Sec. 60.  [TASK FORCE ON AN ACADEMIC HIGH SCHOOL LEAGUE.] 
    Subdivision 1.  [ESTABLISHMENT.] A task force on an 
academic high school league is established.  The task force 
shall consist of 15 members appointed by the academic excellence 
foundation.  The foundation shall appoint at least one member 
from the state committee of the north central association and 
one member from the advisory committee for programs of 
excellence.  The task force shall terminate by June 30, 1986. 
    Subd. 2.  [DUTIES.] The task force shall study and make 
recommendations about establishing an academic high school 
league.  The study shall include at least the following issues: 
    (1) utilization of high schools designated under the 
provisions of Minnesota Statutes, section 126.62, program of 
excellence, to create a league; 
    (2) utilization of high schools accredited by the north 
central association to create a league; and 
    (3) annual activities of the league including competition 
among schools, recognition of achievements, and the relationship 
of the activities to the Minnesota high school league. 
    Subd. 3.  [EXPENSES.] The compensation on task force 
members, removal, and vacancies shall be as provided in 
Minnesota Statutes, section 15.059, subdivisions 3 and 4. 
    Subd. 4.  [REPORT.] The task force shall report its 
findings and recommendations to the academic excellence 
foundation and the education committees of the legislature by 
February 1, 1986. 
    Sec. 61.  [INSTRUCTION TO REVISOR.] 
    The revisor shall renumber Minnesota Statutes, sections 
123.74, 123.741, 123.742, and 123.743 as sections 126.65, 
126.66, 126.67, and 126.68.  The revisor shall renumber 
Minnesota Statutes, section 123.7431 with an appropriate number 
in chapter 124. 
    Sec. 62.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [EDUCATIONAL EFFECTIVENESS.] For educational 
effectiveness programs according to sections 121.608 and 121.609 
there is appropriated: 
    $1,034,000.....1986, 
     $  781,000.....1987. 
    The commissioner shall assign one additional position, from 
the department's existing complement, to educational 
effectiveness programs.  The legislature intends that, beginning 
in fiscal year 1987, districts will pay the costs of educational 
effectiveness in-service for district staff. 
    Subd. 3.  [ACADEMIC EXCELLENCE FOUNDATION.] For support of 
the academic excellence foundation according to Minnesota 
Statutes, section 121.612, there is appropriated: 
    $89,000.....1986, 
    $84,000.....1987.  
    $5,000 of the fiscal year 1986 appropriation shall be used 
for expenses related to the operation of the task force 
established in section 60, subdivision 1. 
    Subd. 4.  [MANAGEMENT ASSISTANCE.] For management 
assistance to school districts according to section 4 there is 
appropriated: 
    $50,000.....1986, 
    $50,000.....1987. 
    Subd. 5.  [LOCAL ASSESSMENT OPTION.] For testing of pupils 
in districts using the local assessment option according to 
Minnesota Statutes, section 123.742, subdivision 2 or 2a, there 
is appropriated: 
    $233,000.....1986. 
    Subd. 6.  [ASSESSMENT ITEM BANK.] For development and 
implementation of the assessment item bank according to 
Minnesota Statutes, section 123.742, subdivision 5, there is 
appropriated: 
    $300,000.....1986, 
    $300,000.....1987.  
    Subd. 7.  [AID FOR PLANNING, EVALUATION, AND REPORTING 
PROCESS.] For aid for the planning, evaluation, and reporting 
process according to Minnesota Statutes, section 123.7431, there 
is appropriated: 
    $1,004,500.....1987.  
    Subd. 8.  [PER ASSISTANCE.] For state assistance for 
planning, evaluation, and reporting, there is appropriated: 
    $120,000.....1986, 
    $120,000.....1987. 
    $50,000 each year shall be used for assisting districts 
with the assurance of mastery program.  Up to $50,000 each year 
shall be used to develop and maintain model learner 
expectations.  Up to $20,000 each year shall be used for the 
state curriculum advisory committee; a portion of this money may 
be for administration. 
    Subd. 9.  [TECHNOLOGY SERVICES.] For the purposes of 
Minnesota Statutes, sections 129B.35, 129B.37, 129B.39, and 
129B.40, there is appropriated: 
    $649,000.....1986, 
    $649,000.....1987. 
    Subd. 10.  [TECHNOLOGY DEMONSTRATION SITES.] For technology 
demonstration sites according to Minnesota Statutes, section 
129B.36 there is appropriated: 
    $2,347,600.....1986. 
    The sum is available until June 30, 1987. 
    Subd. 11.  [COURSEWARE INTEGRATION CENTERS.] For courseware 
integration center grants according to section 55 there is 
appropriated: 
    $710,000.....1986. 
    The sum is available until June 30, 1987. 
    Subd. 12.  [COURSEWARE PURCHASE SUBSIDY.] For subsidies for 
purchases of courseware packages according to Minnesota 
Statutes, section 129B.38 there is appropriated: 
    $351,000.....1986, 
    $351,000.....1987. 
    Subd. 13.  [MASTERY LEARNING PROGRAM.] For the purposes of 
section 42, subdivisions 3 and 10 and section 59, there is 
appropriated: 
   $ 160,000.....1986, 
   $1,290,000.....1987. 
    $125,000 of the appropriation for fiscal year 1986 shall be 
used for a computerized mastery management system and support 
materials.  The remaining $35,000 in fiscal year 1986 shall be 
used for planning aid to districts under section 42, subdivision 
3. 
    $1,250,000 of the appropriation in fiscal year 1987 shall 
be used for mastery learning project grants.  The remaining 
$40,000 for fiscal year 1987 may be used by the department to 
administer and evaluate the program. 
    Subd. 14.  [SCHOOL MANAGEMENT ASSESSMENT CENTER.] For 
support of the school management assessment center at the 
University of Minnesota, there is appropriated: 
    $25,900.....1986, 
    $26,900.....1987.  
    Subd. 15.  [PROGRAMS OF EXCELLENCE.] For programs of 
excellence according to Minnesota Statutes, sections 126.60 to 
126.64, there is appropriated: 
    $25,000.....1986, 
    $25,000.....1987. 
    Of this amount, the following sums may be used for the 
purposes indicated in each year:  $7,500 for program 
administration including expenses of the programs of excellence 
committee, according to Minnesota Statutes, section 126.60, 
subdivision 3 and $17,500 for incentive grants according to 
Minnesota Statutes, section 126.60, subdivision 4. 
    Subd. 16.  [PROJECT GRANT.] For a one-time grant to 
independent school district No. 621, Mounds View, for the 
purpose of the WICAT project, there is appropriated: 
    $12,000.....1986, 
    $12,000.....1987. 
    The grant shall be used for costs of a service contract and 
a portion of the coordinator's salary. 
    Subd. 17.  [INDUSTRIAL TECHNOLOGY PROGRAM.] For development 
of curriculum for the industrial technology program according to 
section 56 there is appropriated: 
    $30,000......1986. 
    The sum is available until June 30, 1987. 
    Subd. 18.  [CANCELLATION AND PRORATION.] Except as provided 
in Minnesota Statutes, section 124.14, subdivision 7, none of 
the amounts appropriated in this section shall be expended for a 
purpose other than the purpose indicated.  If the appropriation 
amount attributable to either year for the purpose indicated 
plus the amount of any transfers made according to Minnesota 
Statutes, section 124.14, subdivision 7, is insufficient, the 
aid for that year shall be prorated among all qualifying 
districts, and the state shall not be obligated for any amount 
in excess of the appropriations in this section for these 
purposes. 
    Sec. 63.  [APPROPRIATIONS TO THE BOARD OF TEACHING.] 
    Subdivision 1.  [BOARD OF TEACHING.] There is appropriated 
from the general fund to the board of teaching the sums 
indicated in this section for the fiscal years ending June 30 in 
the years designated. 
    Subd. 2.  [TEACHER EXAMINATIONS.] For duties related to 
teacher examinations there is appropriated: 
   $105,000.....1986, 
   $ 75,000.....1987. 
    $30,000 of the fiscal year 1986 appropriation is to 
evaluate teaching skills of beginning teachers and $75,000 each 
year is for development of teacher examinations.  
    Subd. 3.  [EXEMPLARY TEACHER EDUCATION PROGRAMS.] For 
development of exemplary teacher education programs there is 
appropriated:  
    $150,000.....1986, 
    $150,000.....1987. 
    Up to $30,000 of this sum may be used for evaluation.  The 
sum is available until June 30, 1987. 
    Sec. 64.  [APPROPRIATIONS TO THE HIGHER EDUCATION 
COORDINATING BOARD.] 
    Subdivision 1.  [HIGHER EDUCATION COORDINATING 
BOARD.] There is appropriated from the general fund to the 
higher education coordinating board the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  Any unexpended balance remaining from the 
appropriations for fiscal year 1986 shall not cancel, and shall 
be available for fiscal year 1987. 
    Subd. 2.  [SUMMER PROGRAM SCHOLARSHIPS.] For scholarship 
awards for 1986 and 1987 summer programs according to section 
22, there is appropriated: 
 $500,000......1986. 
    Of this appropriation, the amount required may be used for 
the higher education coordinating board's costs of administering 
the program. 
    Subd. 3.  [DATA COLLECTION ON TEACHER EDUCATION STUDENTS.] 
For data collection and reporting on characteristics of teacher 
education students pursuant to section 43, there is appropriated:
 $20,000.....1986. 
    A portion of this appropriation may be used to defray the 
costs of teacher preparation institutions in providing requested 
data. 
    Sec. 65.  [REPEALERS.] 
    Minnesota Statutes 1984, sections 124.247, subdivision 6; 
124A.03, subdivision 5; 129B.10; 129B.33, subdivisions 2, 3, 4, 
and 6; 129B.34; and 129B.36, subdivisions 2 and 3, are repealed. 
    Minnesota Statutes 1984, sections 121.601 and 123.742, 
subdivision 2, are repealed on June 30, 1986.  
    Sections 45, 47, and 55 are repealed on June 30, 1987.  
    Sec. 66.  [EFFECTIVE DATES.] 
    Section 9 is effective for the 1986-1987 school year and 
thereafter.  
    Sections 10 and 14 are effective for the 1987-1988 school 
year and thereafter. 
    Section 19 is effective for licenses issued on April 4, 
1988, and thereafter. 

                               ARTICLE 9 

                               LIBRARIES 
    Section 1.  Minnesota Statutes 1984, section 134.35, is 
amended to read: 
    134.35 [REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS; 
DISTRIBUTION FORMULA.] 
    Subdivision 1.  [GRANT APPLICATION.] Any regional public 
library system which qualifies according to the provisions of 
section 134.34 may apply for an annual grant for regional 
library basic system support.  The amount of each grant for each 
fiscal year shall be calculated as provided in this section. 
    Subd. 2.  Fifty-five Sixty percent of the available grant 
funds shall be distributed to provide all qualifying systems an 
equal amount per capita.  Each system's allocation pursuant to 
this subdivision shall be based on the population it serves. 
    Subd. 3.  Fifteen percent of the available grant funds 
shall be distributed to provide all qualifying systems an equal 
amount per square mile.  Each system's allocation pursuant to 
this subdivision shall be based on the area it serves. 
    Subd. 4.  The sum of $35,000 Seven and one-half percent of 
the available grant funds shall be paid to each system as a base 
grant for basic system services. 
    Subd. 5.  After the allocations made pursuant to 
subdivisions 2, 3 and 4, any remaining available grant funds for 
basic system support Seventeen and one-half percent of the 
available grant funds shall be distributed to those regional 
public library systems which contain counties whose adjusted 
assessed valuations per capita were below the state average 
adjusted assessed valuation per capita for the second year 
preceding the fiscal year for which the grant is made.  Each 
system's entitlement shall be calculated as follows: 
    (a) Subtract the adjusted assessed valuation per capita for 
each eligible county or participating portion of a county from 
the statewide average adjusted assessed valuation per capita; 
    (b) Multiply the difference obtained in clause (a) for each 
eligible county or participating portion of a county by the 
population of that eligible county or participating portion of a 
county; 
    (c) For each regional public library system, determine the 
sum of the results of the computation in clause (b) for all 
eligible counties or portions thereof in that system; 
    (d) Determine the sum of the result of the computation in 
clause (b) for all eligible counties or portions thereof in all 
regional public library systems in the state; 
    (e) For each system, divide the result of the computation 
in clause (c) by the result of the computation in clause (d) to 
obtain the allocation factor for that system; 
    (f) Multiply the allocation factor for each system as 
determined in clause (e) times the amount of the remaining grant 
funds to determine each system's dollar allocation pursuant to 
this subdivision. 
    Sec. 2.  Minnesota Statutes 1984, section 134.351, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT.] The state board of 
education, upon the advice of the advisory council to the office 
of public libraries and interlibrary cooperation library 
development and services, may approve the establishment of 
multi-county, multi-type library systems and the geographic 
boundaries of those systems.  
    Sec. 3.  [APPROPRIATION.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] There is 
appropriated from the general fund to the department of 
education the sums indicated in this section for the fiscal 
years ending June 30 in the years designated. 
    Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
pursuant to sections 134.32 to 134.35 for the provision of 
library service there is appropriated: 
    $4,923,600.....1986, 
    $5,047,300.....1987. 
    The appropriation for 1986 includes $695,000 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $4,228,600 for 
aid for fiscal year 1986 payable in fiscal year 1986.  
    The appropriation for 1987 includes $746,200 for aid for 
fiscal year 1986 payable in fiscal year 1987 and $4,301,100 for 
aid for fiscal year 1987 payable in fiscal year 1987.  
    The appropriations are based on aid entitlements of 
$4,974,800 for fiscal year 1986 and $5,060,100 for fiscal year 
1987. 
    Subd. 3.  [MULTI-COUNTY, MULTI-TYPE LIBRARY SYSTEMS.] For 
grants pursuant to sections 134.353 and 134.354 to multi-county, 
multi-type library systems there is appropriated: 
    $205,100.....1986, 
    $213,000.....1987. 
    The appropriation for 1986 includes $30,000 for aid for 
fiscal year 1985 payable in fiscal year 1986, and $175,100 for 
aid for fiscal year 1986 payable in fiscal year 1986. 
    The appropriation for 1987 includes $30,900 for fiscal year 
1986 payable in fiscal year 1987, and $182,100 for aid for 
fiscal year 1987 payable in fiscal year 1987. 
    The appropriations are based on aid entitlements of 
$206,000 for fiscal year 1986, and $214,200 for fiscal year 1987.

                               ARTICLE 10 

                               CASH FLOW 
    Section 1.  Minnesota Statutes 1984, section 121.904, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to section 275.125, subdivision 9a, 
and Laws 1976, chapter 20, section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the June and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2 which are for the fiscal year 
payable in that fiscal year plus 32 24 percent of the amount of 
the levy certified in the prior calendar year according to 
section 275.125, subdivision 2d, plus or minus auditor's 
adjustments, not including levy portions that are assumed by the 
state; or 
    (3) thirty-two 24 percent of the amount of the levy 
certified in the prior calendar year, plus or minus auditor's 
adjustments, not including levy portions that are assumed by the 
state, which remains after subtracting, by fund, the amounts 
levied for the following purposes:  
    (i) reducing or eliminating projected deficits in the 
appropriated fund balance accounts for unemployment insurance 
and bus purchases;  
    (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, chapter 20, section 4; and 
    (iii) retirement and severance pay pursuant to section 
275.125, subdivision 6a, and Laws 1975, chapter 261, section 4; 
and 
    (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, and 
amounts levied pursuant to section 275.125, subdivision 14a. 
    (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
    (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable.  
    Sec. 2.  Minnesota Statutes 1984, section 124.14, is 
amended by adding a subdivision to read: 
    Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
appropriation to the commissioner of education for education 
aids authorized in chapters 121, 123, 124, 124A, 125, 126, 129B, 
and 134 exceeds the amount required for payment of the 
corresponding aid entitlement, the commissioner may transfer the 
excess to any education aid or grant appropriation that is 
insufficient to meet the required payment, except that a 
deficiency in the direct appropriation for foundation aid must 
be met by use of the appropriation in section 124A.032.  The 
commissioner shall determine the method for allocating excess 
appropriations among aids or grants that have insufficient 
appropriations.  The commissioner of finance shall make the 
necessary transfers among appropriations according to the 
determinations of the commissioner of education.  The 
commissioner of education shall report appropriation transfers 
to the education committees of the legislature each year by 
January 15. 
    Sec. 3.  Minnesota Statutes 1984, section 124.195, 
subdivision 7, is amended to read: 
    Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] 
Beginning in Each fiscal year 1984, state general fund payments 
to school for a district nonoperating funds fund shall be made 
at 85 percent of the estimated entitlement during the fiscal 
year of the entitlement, unless a higher rate has been 
established according to section 121.904, subdivision 4d.  This 
amount shall be paid in 12 equal monthly installments.  The 
amount of the actual entitlement, after adjustment for actual 
data, minus the payments made during the fiscal year of the 
entitlement shall be paid prior to October 31 of the following 
school year.  
    Sec. 4.  Minnesota Statutes 1984, section 124.195, 
subdivision 8, is amended to read: 
    Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] The 
following aids shall be paid at 100 percent of the entitlement 
for the prior fiscal year:  special education summer 
foundation program aid according to section 124.201 124A.033; 
abatement aid according to section 124.214, subdivision 2; 
special education residential aid according to section 124.32, 
subdivision 5; special education summer school aid, according to 
section 124.32, subdivision 10; veterans farm management aid, 
according to section 124.625; early retirement aid according to 
section 125.611 planning, evaluating, and reporting process aid 
according to section 123.7431; and extended leave and part-time 
teacher aids according to chapters 354 and 354A.  
    Sec. 5.  Minnesota Statutes 1984, section 124.195, 
subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] The 
following aids shall be paid at 100 percent of the entitlement 
for the current fiscal year:  reimbursement for transportation 
to post-secondary institutions, according to section 1, 
subdivision 8, of article 5; reimbursement for transportation to 
a program of excellence, according to section 126.62, 
subdivision 6; handicapped adult program aid, according to 
section 124.271, subdivision 7; arts education aid according to 
section 124.275; school lunch aid, according to section 124.646; 
hearing impaired support services aid, according to section 
121.201; and educational improvement aids technology 
demonstration site grants, according to sections 121.601, 
129B.33, 129B.34, and section 129B.36 and courseware purchase 
subsidy according to section 129B.38. 
    Sec. 6.  Minnesota Statutes 1984, section 124.195, 
subdivision 10, is amended to read: 
    Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
subdivisions 8 and 9, beginning in each fiscal year 1984, all 
education aids and credits in chapters 121, 123, 124, 124A, 125, 
126, 134, and section 273.1392, except post-secondary vocational 
shall be paid at 85 percent of the estimated entitlement during 
the fiscal year of the entitlement, unless a higher rate has 
been established according to section 121.904, subdivision 4d.  
The amount of the actual entitlement, after adjustment for 
actual data, minus the payments made during the fiscal year of 
the entitlement shall be paid as the final adjustment payment 
according to subdivision 6. 
    Sec. 7.  Minnesota Statutes 1984, section 124.195, 
subdivision 11, is amended to read: 
    Subd. 11.  [NONPUBLIC AIDS.] The state shall pay to each 
school district 85 percent, unless a higher rate has been 
established according to section 121.904, subdivision 4d, of its 
aid for pupils attending nonpublic schools and nonpublic 
transportation aid requested by a district and approved by the 
commissioner according to sections 123.931 to 123.947 
by December October 31.  The final aid distribution shall be 
made by December October 31 of the following school year.  
    Sec. 8.  [APPROPRIATION FOR EDUCATION AIDS INCREASE.] 
    $50,000,000 is appropriated from the education aids 
increase account to the general fund for fiscal year 1985 for 
the purpose of paying education aids for fiscal years 1986 and 
1987. 
     Sec. 9.  [REDUCTIONS FOR REVENUE EQUITY.] 
     Pursuant to Minnesota Statutes, sections 124.2138 and 
124A.037, aid payments shall be reduced in fiscal year 1986 by 
approximately $4,429,000. 
    Sec. 10.  [REPEALER.] 
    Laws 1984, chapter 463, article 9, section 9, is repealed. 
     Sec. 11.  [EFFECTIVE DATE.] 
     Section 8 is effective the day following final enactment. 

                               ARTICLE 11

                           TEACHER RETIREMENT
    Section 1.  [124.2161] [TEACHER RETIREMENT AND F.I.C.A. AID 
AND LEVY; DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] For the purposes of this 
article and section 275.125, the following terms have the 
meanings given them. 
    Subd. 2.  [F.I.C.A.] "F.I.C.A." means the Federal Insurance 
Contribution Act. 
    Subd. 3.  [TEACHER RETIREMENT OBLIGATIONS.] "Teacher 
Retirement Obligations" means a school district's obligations 
for employer contributions to a teacher retirement fund as 
required by sections 354.42, subdivisions 3 and 5, and 354A.12, 
subdivision 2, excluding contributions on behalf of teachers 
employed at an area vocational technical institute, and 
excluding contributions based upon salaries paid from sources 
other than normal school operating funds as defined in section 
354.05, subdivision 27. 
    Subd. 4.  [F.I.C.A. OBLIGATIONS.] "F.I.C.A. Obligations" 
means a school district's obligations for F.I.C.A. as required 
by sections 355.208 and 355.287, excluding contributions on 
behalf of teachers employed at an area vocational technical 
institute, and excluding contributions based upon salaries paid 
from sources other than normal school operating funds as defined 
in section 354.05, subdivision 27. 
     Subd. 5.  [TEACHER RETIREMENT INFLATION FACTOR.] "Teacher 
Retirement Inflation Factor" means a factor to be multiplied by 
a district's teacher retirement obligations for the base year.  
For the base year of fiscal year 1985, the teacher retirement 
inflation factor shall be 1.1396.  For base years after fiscal 
year 1985, the teacher retirement inflation factor shall be 
equal to the foundation aid formula allowance for the current 
year, divided by the foundation aid formula allowance for the 
base year. 
    Subd. 6.  [F.I.C.A. INFLATION FACTOR.] "F.I.C.A. Inflation 
Factor" means a factor to be multiplied by a district's F.I.C.A. 
obligations for the base year.  For the base year of fiscal year 
1985, the F.I.C.A. inflation factor shall be 1.1806.  For base 
years after fiscal year 1985, the F.I.C.A. inflation factor 
shall be equal to the foundation aid formula allowance for the 
current year, divided by the foundation aid formula allowance 
for the base year. 
    Subd. 7.  [BASE YEAR.] "Base year" means the second fiscal 
year preceding the fiscal year for which a district's aid is 
computed under the provisions of this section and section 
124.2162. 
    Subd. 8.  [CURRENT YEAR.] "Current year" means the fiscal 
year for which a district's aid is computed under the provisions 
of this section and section 124.2162. 
    Subd. 9.  [INTERMEDIATE SCHOOL DISTRICT.] "Intermediate 
school district" means a school district organized under chapter 
136D.  
    Subd. 10.  [JOINT VOCATIONAL TECHNICAL DISTRICT.] "Joint 
vocational technical district" means a school district organized 
under chapter 136C.  
    Subd. 11.  [OTHER EMPLOYING UNITS.] "Other employing units" 
means secondary vocational education cooperative centers 
established under section 123.351, special education cooperative 
centers established under section 120.17, educational 
cooperative service units established under section 123.58, and 
regional management information centers established under 
section 121.935. 
    Subd. 12. [FULL-TIME EQUIVALENT TEACHERS; JOINT VOCATIONAL 
TECHNICAL AND INTERMEDIATE DISTRICTS.] "Full-time equivalent 
teachers" means the full-time equivalent number of all teachers 
as defined in section 125.12, subdivision 1, employed in 
elementary and secondary programs at an intermediate school 
district or a joint vocational technical school district, 
excluding AVTI teachers and excluding teachers paid from sources 
other than normal school operating funds as defined in section 
354.05, subdivision 27. 
    Subd. 13.  [FULL-TIME EQUIVALENT TEACHERS; OTHER EMPLOYING 
UNITS.] "Full-time equivalent teachers" at secondary vocational 
cooperative centers, special education cooperative centers, 
educational cooperative service units, and regional management 
information centers means the full-time equivalent number of all 
employees who are members of the state teacher retirement 
association, excluding employees paid from sources other than 
normal school operating funds as defined in section 354.05, 
subdivision 27. 
    Sec. 2.  [124.2162] [TEACHER RETIREMENT AID; SCHOOL 
DISTRICTS.] 
    Subdivision 1.  [TEACHER RETIREMENT AND F.I.C.A. AID 
ALLOWANCE.] "Teacher Retirement and F.I.C.A. Aid Allowance" for 
a district that is not an intermediate school district or a 
joint vocational technical school district is the quotient of 
(a) the sum of (1) teacher retirement obligations in the base 
year, multiplied by the teacher retirement inflation factor, and 
(2) F.I.C.A. obligations in the base year, multiplied by the 
F.I.C.A. inflation factor, divided by (b) the number of pupils 
in average daily membership in the district in the base year. 
    Subd. 2.  [AID.] Beginning in fiscal year 1987, the state 
shall pay each district for each fiscal year, teacher retirement 
and F.I.C.A. aid in the amount of the teacher retirement and 
F.I.C.A. aid allowance under subdivision 1 times the number of 
pupils in average daily membership in the district for the 
current school year.  However, in no case shall the amount of 
aid paid to a district for any fiscal year exceed the sum of the 
district's teacher retirement obligations and F.I.C.A. 
obligations for that year.  
    Sec. 3.  [124.2163] [TEACHER RETIREMENT AID; INTERMEDIATE 
DISTRICTS AND OTHER EMPLOYING UNITS.] 
    Subdivision 1.  [CALCULATION.] For an intermediate school 
district, a joint vocational technical school district or for 
other employing units, for each fiscal year the teacher 
retirement and F.I.C.A. aid is the product of (1) the sum of (A) 
teacher retirement obligations in the base year, multiplied by 
the teacher retirement inflation factor, and (B) F.I.C.A. 
obligations in the base year, multiplied by the F.I.C.A. 
inflation factor, times (2) the ratio of the number of full-time 
equivalent teachers or employees as defined in section 1, 
subdivisions 11 and 12 in the current year, to the number of 
full-time equivalent teachers or employees in the base year. 
    Subd. 2.  [AID.] Each year beginning with fiscal year 1987, 
the state shall pay teacher retirement and F.I.C.A. aid to 
intermediate school districts, joint vocational technical school 
districts, and other employing units equal to the district's or 
employing unit's aid under subdivision 1.  However, in no case 
shall the amount of aid paid to an intermediate school district, 
joint vocational technical school district, or the employing 
unit exceed the sum of the intermediate school district or other 
employing unit's teacher retirement obligations and F.I.C.A. 
obligations for that year. 
    Subd. 3.  [CHARGES PROHIBITED.] An intermediate school 
district may not charge member districts for teacher retirement 
costs in excess of aid paid to the intermediate district under 
this section. 
    Sec. 4.  Minnesota Statutes 1984, section 354.092, is 
amended to read:  
    354.092 [SABBATICAL LEAVE.] 
    If a member is granted a sabbatical leave, he may receive 
allowable service credit not exceeding three years in any ten 
consecutive years toward a retirement annuity by paying into the 
fund employee contributions during the period of leave.  The 
employee contribution shall be based upon the appropriate rate 
of contributions and the salary received during the year 
immediately preceding the leave.  This payment shall be made by 
the end of the fiscal year following the fiscal year in which 
the leave of absence terminated, and shall be without interest.  
A member shall not accrue more than three years allowable 
service by reason of this section unless the allowable service 
credit was paid for by the member prior to July 1, 1962.  A 
sabbatical leave for the purpose of this section shall be 
compensated by a minimum of one-third of the salary the member 
received for a comparable period during the prior fiscal year.  
If the employee contributions during the period of the leave are 
less than the contributions based on the salary received during 
the year immediately preceding the leave, the formula service 
credit of the member shall be prorated according to section 
354.05, subdivision 25, clause (3), except that if the member is 
paid full salary for any sabbatical leave of absence, either 
past or prospective, the formula service credit shall not be 
prorated.  For sabbatical leaves taken after June 30, 1986, the 
required employer contribution, including the amortization 
amount specified in section 354.42, subdivisions 3 and 5, shall 
be paid by the employing unit within 30 days after notification 
by the association of the amount due.  
    Sec. 5.  Minnesota Statutes 1984, section 354.094, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] A member 
granted an extended leave of absence pursuant to section 125.60 
or 136.88, except as provided in subdivision 1a or 1b, may pay 
employee contributions and receive allowable service credit 
toward annuities and other benefits under this chapter, for each 
year of the leave provided the member and the employing board 
make the required employer contribution in any proportion they 
may agree upon, during the period of the leave which shall not 
exceed five years.  Except as provided in subdivision 1a or 1b, 
the state shall not pay employer contributions into the fund for 
any year for which a member is on extended leave.  The employee 
and employer contributions shall be based upon the rates of 
contribution prescribed by section 354.42 for the salary 
received during the year immediately preceding the extended 
leave.  Payments for the years for which a member is receiving 
service credit while on extended leave shall be made on or 
before June 30 of each fiscal year for which service credit is 
received or within 30 days after notification by the association 
of the amount due, whichever is later. 
    Sec. 6.  Minnesota Statutes 1984, section 354.43, 
subdivision 3, is amended to read: 
    Subd. 3.  Each school district, state university, community 
college and any other employing authority of members of the fund 
shall be obligated for pay employer contributions at least once 
each month in accordance with the provisions of sections 354.42, 
subdivisions 3 and 5, and 355.46, subdivision 3, as provided in 
this section.  Payments for school district or area vocational 
technical institute employees who are paid from normal operating 
funds, shall be made from the district's or area vocational 
technical institute's general fund.  With respect to state 
employees, each department and agency shall pay the amounts 
required by section 354.42, subdivisions 3 and 5 from the 
accounts and funds from which each department or agency receives 
its revenue, including appropriations from the general fund and 
from any other fund, now or hereafter existing, for the payment 
of salaries and in the same proportion as it pays therefrom the 
amounts of the salaries.  The payments shall be charged as an 
administrative cost by these units of state government.  For 
other reporting units, that portion of the employer 
contributions based on salaries paid from sources other than 
normal school operating funds as defined in section 354.05, 
subdivision 27 shall be remitted to the teachers retirement 
association.  The remittance shall be accompanied by a 
satisfactory certification which shows the total of all salaries 
paid which are subject to teachers retirement deductions.  The 
certification shall also show the total amount of salaries paid 
from normal school operating funds and the total amount of 
salaries paid from sources other than normal school operating 
funds as defined in section 354.05, subdivision 27.  For each 
individual salary included in the total of all salaries paid 
from sources other than normal school operating funds as defined 
in section 354.05, subdivision 27, the certification shall show 
each person's name, his salary or related portion of salary and 
remittance of employer contributions related to the salary for 
each person included in the actual remittance. 
    Sec. 7.  Minnesota Statutes 1984, section 354.51, 
subdivision 5, is amended to read: 
    Subd. 5.  In the event that full required member 
contributions are not deducted from the salary of a teacher, 
payment shall be made as follows:  
    (a) Payment of shortages in member deductions on salary 
earned after July 1, 1961 and prior to July 1, 1981 shall be 
made within one year from the end of the fiscal year in which 
the shortage in deductions occurred in order to be accepted 
without an interest charge.  If payment is not made within this 
period of time, it may be paid by the member any time prior to 
retirement provided that the payment shall include six percent 
interest compounded annually from the end of the fiscal year in 
which the shortage occurred to the end of the month in which 
payment is made and the interest shall be credited to the fund.  
If payment of a shortage in deductions is not made, the formula 
service credit of the member shall be prorated pursuant to 
section 354.05, subdivision 25, clause (3). 
    (b) Payment of shortages in member deductions on salary 
earned after June 30, 1981 shall be the sole obligation of the 
employing unit and shall be payable by the employing unit upon 
notification by the executive director of the shortage with 
interest at the rate of six percent per annum, compounded 
annually, from the end of the fiscal year in which the shortage 
occurred to the end of the month in which payment is made and 
the interest shall be credited to the fund.  Effective July 1, 
1986, the employing unit shall also pay the employer 
contributions as specified in section 354.42, subdivisions 3 and 
5 for such shortages.  If the shortage payment is not paid by 
the employing unit within 60 days of notification, the executive 
director shall certify the amount of the shortage payment to the 
applicable county auditor, who shall spread a levy in the amount 
of the shortage payment over the taxable property of the taxing 
district of the employing unit if the employing unit is 
supported by property taxes, or to the commissioner of finance, 
who shall deduct the amount from any state aid or appropriation 
amount applicable to the employing unit if the employing unit is 
not supported by property taxes.  
    Sec. 8.  Minnesota Statutes 1984, section 354.53, 
subdivision 1, is amended to read: 
    Subdivision 1.  Any employee given a leave of absence to 
enter military service and who returns to teaching service upon 
discharge from military service as provided in section 192.262, 
shall obtain credit for the period of military service but shall 
not receive credit for any voluntary extension of military 
service at the instance of the member beyond the initial period 
of enlistment, induction or call to active duty.  The member 
shall obtain credit by paying into the fund an employee 
contribution based upon the salary of the member at the date of 
return from military service.  The amount of this contribution 
shall be as follows: 
   
       Period          Basic Member     Coordinated Member
     July 1, 1973       8 percent          4 percent
        thru
     June 30, 1979
     July 1, 1979
        and             8.5 percent        4.5 percent
     thereafter
    The contributions specified in this subdivision shall be 
multiplied by the number of years of military service together 
with interest thereon at the rate of six percent compounded 
annually from the time the military service was rendered to the 
first date of payment.  The employer contribution and additional 
contribution provided in section 354.42 shall be paid by the 
state employing unit in the manner provided in section 354.43. 
    Sec. 9.  Minnesota Statutes 1984, section 354.66, 
subdivision 4, is amended to read:  
    Subd. 4.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding any 
provision to the contrary in this chapter relating to the salary 
figure to be used for the determination of contributions or the 
accrual of service credit, a teacher assigned to a part-time 
position pursuant to this section shall continue to make 
employee contributions to and to accrue allowable service credit 
in the retirement fund during the period of part-time employment 
on the same basis and in the same amounts as would have been 
paid and accrued if the teacher had been employed on a full-time 
basis provided that, except as provided in subdivision 4a, prior 
to June 30 each year, or within 30 days after notification by 
the association of the amount due, whichever is later, the 
member and the employing board make that portion of the required 
employer contribution to the retirement fund, in any proportion 
which they may agree upon, that is based on the difference 
between the amount of compensation that would have been paid if 
the teacher had been employed on a full-time basis and the 
amount of compensation actually received by the teacher for the 
services rendered in the part-time assignment.  The state 
employing unit shall make that portion of the required employer 
contributions to the retirement fund on behalf of the teacher 
that is based on the amount of compensation actually received by 
the teacher for the services rendered in the part-time 
assignment in the manner described in section 
354.43, subdivisions 1 and 5 subdivision 3.  The employee and 
employer contributions shall be based upon the rates of 
contribution prescribed by section 354.42.  Full accrual of 
allowable service credit and employee contributions for 
part-time teaching service pursuant to this section and section 
354A.094 shall not continue for a period longer than ten years.  
    Sec. 10.  Minnesota Statutes 1984, section 354A.092, is 
amended to read: 
    354A.092 [SABBATICAL LEAVE.] 
    Any teacher in the coordinated program of either the 
Minneapolis teachers retirement fund association or the St.  
Paul teachers retirement fund association or any teacher in the 
new law coordinated program of the Duluth teachers retirement 
fund association who is granted a sabbatical leave shall be 
entitled to receive allowable service credit in the applicable 
association for periods of sabbatical leave.  To obtain the 
service credit, the teacher on sabbatical leave shall make an 
employee contribution to the applicable association.  No teacher 
shall be entitled to receive more than three years of allowable 
service credit pursuant to this section for a period or periods 
of sabbatical leave during any ten consecutive fiscal or 
calendar years, whichever is the applicable plan year for the 
teachers retirement fund association.  If the teacher granted a 
sabbatical leave makes the employee contribution for a period of 
sabbatical leave pursuant to this section, the state employing 
unit shall make an employer contribution on behalf of the 
teacher to the applicable association for that period of 
sabbatical leave in the manner described in section 354.43, 
subdivisions 1, 2 and 5.  The employee and employer 
contributions shall be in an amount equal to the employee and 
employer contribution rates in effect for other active members 
of the association covered by the same program applied to a 
salary figure equal to the teacher's actual covered salary for 
the plan year immediately preceding the sabbatical leave 
period.  Payment of the employee contribution authorized 
pursuant to this section shall be made by the teacher on or 
before June 30 of year next following the year in which the 
sabbatical leave terminated and shall be made without interest.  
For sabbatical leaves taken after June 30, 1986, the required 
employer contributions shall be paid by the employing unit 
within 30 days after notification by the association of the 
amount due.  If the employee contributions for the sabbatical 
leave period are less than an amount equal to the applicable 
contribution rate applied to a salary figure equal to the 
teacher's actual covered salary for the plan year immediately 
preceding the sabbatical leave period, service credit shall be 
prorated.  The prorated service credit shall be determined by 
the ratio between the amount of the actual payment which was 
made and the full contribution amount payable pursuant to this 
section. 
    Sec. 11.  Minnesota Statutes 1984, section 354A.093, is 
amended to read: 
    354A.093 [MILITARY SERVICE CREDIT.] 
    Any teacher in the coordinated program of either the 
Minneapolis teachers retirement fund association or the St.  
Paul teachers retirement fund association or any teacher in the 
new law coordinated program of the Duluth teachers retirement 
fund association who is granted a leave of absence to enter 
military service and who returns to active teaching service upon 
discharge from military service as provided in section 192.262, 
shall be entitled to receive allowable service credit in the 
applicable association for all or a portion of the period of 
military service but not for any voluntary extension of military 
service beyond the initial period of enlistment, induction or 
call to active duty which occurred at the instance of the 
teacher.  If the teacher granted the military service leave of 
absence makes the employee contribution for a period of military 
service leave of absence pursuant to this section, the state 
employing unit shall make an employer contribution on behalf of 
the teacher to the applicable association for the period of the 
military service leave of absence in the manner described in 
section 354.43, subdivisions 1, 2 and 5.  The employee and 
employer contributions shall be in an amount equal to the 
employee and employer contribution rates in effect for other 
active members of the association covered by the same program 
applied to a salary figure equal to the teacher's annual salary 
rate at the date of return from military service, multiplied by 
the number of years constituting the period of the military 
service leave of absence which the teacher seeks to purchase.  
Payment shall include interest on the amount payable pursuant to 
this section at the rate of six percent compounded annually from 
the year the military service was rendered to the date of 
payment.  If the payments made by a teacher pursuant to this 
section are less than an amount equal to the applicable 
contribution rate applied to a salary figure equal to the 
teacher's annual salary rate at the date of return from military 
service, multiplied by the number of years constituting the 
period of the military service leave of absence, service credit 
shall be prorated.  The prorated service credit shall be 
determined by the ratio between the amount of the actual payment 
which was made and the full contribution amount payable pursuant 
to this section.  In order to be entitled to receive service 
credit under this section, payment shall be made within five 
years from the date of discharge from military service. 
    Sec. 12.  Minnesota Statutes 1984, section 354A.094, 
subdivision 4, is amended to read: 
    Subd. 4.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding any 
provision to the contrary in this chapter or the articles of 
incorporation or bylaws of an association relating to the salary 
figure to be used for the determination of contributions or the 
accrual of service credit, a teacher assigned to a part-time 
position pursuant to this section shall continue to make 
employee contributions to and to accrue allowable service credit 
in the applicable association during the period of part-time 
employment on the same basis and in the same amounts as would 
have been paid and accrued if the teacher had been employed on a 
full-time basis provided that, except as provided in subdivision 
4a, prior to June 30 each year the member and the employing 
board make that portion of the required employer contribution to 
the applicable association in any proportion which they may 
agree upon, that is based on the difference between the amount 
of compensation that would have been paid if the teacher had 
been employed on a full-time basis and the amount of 
compensation actually received by the teacher for services 
rendered in the part-time assignment.  The state shall make that 
portion of required the employer contributions to the applicable 
association on behalf of the teacher that is shall be based on 
the amount of compensation actually received by the teacher for 
the services rendered in the part-time assignment in the manner 
described in section 354.43, subdivisions 1 and 5.  The employee 
and employer contributions shall be based upon the rates of 
contribution prescribed by section 354A.12.  Full membership, 
accrual of allowable service credit and employee contributions 
for part-time teaching service by a teacher pursuant to this 
section and section 354.66 shall not continue for a period 
longer than ten years.  
    Sec. 13.  Minnesota Statutes 1984, section 354A.12, 
subdivision 2, is amended to read: 
    Subd. 2.  [EMPLOYER CONTRIBUTIONS.] Notwithstanding any law 
to the contrary, levies for teachers retirement fund 
associations in cities of the first class, including levies for 
any employer social security taxes for teachers covered by the 
Duluth teachers retirement fund association or the Minneapolis 
teachers retirement fund association or the St. Paul teachers 
retirement fund association, are disallowed and the state shall 
assume the total employer obligation. 
    The state employing units shall make the following employer 
contributions to teachers retirement fund associations: 
    (a) For any coordinated member of a teachers retirement 
fund association in a city of the first class, the state 
employing unit shall pay the employer social security taxes in 
accordance with section 355.46, subdivision 3, clause (b); 
    (b) For any coordinated member of one of the following 
teachers retirement fund associations in a city of the first 
class, the state employing unit shall make a contribution to the 
respective retirement fund association in an amount equal to the 
designated percentage of the salary of the coordinated member as 
provided below: 
     Duluth teachers retirement
     fund association                        5.79 percent
     Minneapolis teachers retirement
     fund association                        4.50 percent
     St. Paul teachers retirement
     fund association                        4.50 percent
    (c) For any basic member of one of the following teachers 
retirement fund associations in a city of the first class, the 
state employing unit shall make a contribution to the respective 
retirement fund in an amount equal to the designated percentage 
of the salary of the basic member as provided below: 
     Minneapolis teachers retirement
     fund association                        13.35 percent
     St. Paul teachers retirement
     fund association                        12.63 percent
    The state employer contributions shall be remitted directly 
to each teachers retirement fund association each month in 
accordance with the procedures described in section 354.43, 
subdivisions 1 and 5. 
    Once each month the executive secretary of each teachers 
retirement fund association shall determine the amount of money 
necessary and presently needed to meet the state obligation as 
provided in this subdivision by applying the percentage of 
payroll figure to the estimated payroll amounts for the current 
month and shall certify the amount to the commissioner of 
finance.  The moneys required to meet the amounts certified by 
each executive secretary of a teachers retirement fund 
association shall be remitted directly to the applicable 
teachers retirement fund association from the general fund each 
month.  If subsequent actual experience deviates from the 
anticipated experience upon which the amount certified was 
determined, the allocation to the first class city teachers 
retirement fund association involved next following the 
discovery of the deviation shall be adjusted.  If the state 
makes an excess employer contribution to a teachers retirement 
fund association as the result of a false or wrongful 
certification, the state shall be entitled to recover the excess 
employer contribution by any appropriate means, including 
recovery from future state allocations, state aid or other funds 
payable to the school district in which the association is 
located.  If an employee of that school district is responsible 
for the false or wrongful certification, any excess employer 
contribution recovered by the state shall be the obligation of 
the school district Payments for school district or area 
vocational technical institute employees who are paid from 
normal operating funds, shall be made from the district's or 
area vocational technical institute's general fund. 
    Sec. 14.  Minnesota Statutes 1984, section 355.208, is 
amended to read: 
    355.208 [EMPLOYER CONTRIBUTIONS.] 
    Contributions required under the agreement or modification 
entered into pursuant to section 355.207 to be made by political 
subdivisions employing teachers, and payments required by 
section 355.49, which shall apply to political subdivisions 
employing teachers, shall be paid by the state political 
subdivisions.  Payments for school district or area vocational 
technical institute employees who are paid from normal operating 
funds, shall be made from the district's or area vocational 
technical institute's general fund. 
    Sec. 15.  Minnesota Statutes 1984, section 355.209, is 
amended to read: 
    355.209 [EMPLOYEE CONTRIBUTIONS; DEDUCTION FROM WAGES.] 
    After the date the agreement or modification is entered 
into pursuant to section 355.207, there shall be paid as a 
deduction from wages an employee contribution in an amount equal 
to the tax that would be imposed by the Federal Insurance 
Contribution Act if such service constituted employment within 
the meaning of that act.  Contributions so made shall be paid 
into the contribution fund in partial discharge of the liability 
of the state and each political subdivision in respect thereto.  
Failure to deduct such contribution shall not relieve the 
employee or the state or the political subdivision of liability 
therefor. 
    Sec. 16.  Minnesota Statutes 1984, section 355.287, is 
amended to read: 
    355.287 [EMPLOYER CONTRIBUTIONS.] 
    Contributions required under the agreement or modification 
entered into pursuant to section 355.286 to be made by political 
subdivisions employing teachers, and payments required by 
section 355.49, which shall apply to political subdivisions 
employing teachers, shall be paid by the state political 
subdivision.  Payments for school district or area vocational 
technical institute employees who are paid from normal operating 
funds, shall be made from the district's or area vocational 
technical institute's general fund. 
    Sec. 17.  Minnesota Statutes 1984, section 355.288, is 
amended to read: 
    355.288 [EMPLOYEE CONTRIBUTIONS; DEDUCTION FROM WAGES.] 
    After the date the agreement or modification is entered 
into pursuant to section 355.286, there shall be paid as a 
deduction from wages an employee contribution in an amount equal 
to the tax that would be imposed by the Federal Insurance 
Contribution Act if such service constituted employment within 
the meaning of that act.  Contributions so made shall be paid 
into the contribution fund in partial discharge of the liability 
of the state and each political subdivision in respect thereto.  
Failure to deduct such contribution shall not relieve the 
employee or the state or the political subdivision of liability 
therefor. 
    Sec. 18.  Minnesota Statutes 1984, section 355.46, 
subdivision 3, is amended to read: 
    Subd. 3.  [SOCIAL SECURITY CONTRIBUTIONS.] The employer 
taxes due with respect to employment by educational employees 
who have made their selection pursuant to section 218(d) (6) (C) 
of the Social Security Act, shall be paid in the following 
manner: 
    (a) Contributions required for retroactive coverage shall 
be made in the manner provided in subdivision 2. 
    (b) Contributions required to be made for current service 
by political subdivisions employing educational employees and 
payments required by section 355.49 shall be paid by the state 
political subdivision.  Payments for school district or area 
vocational technical institute employees who are paid from 
normal operating funds, shall be made from the district's or 
area vocational technical institute's general fund.  The state's 
obligation for services performed subsequent to the date of the 
agreement or modification shall be paid by the commissioner of 
employee relations at such times and in such amounts as may be 
determined by the state agency to be necessary state shall make 
payments for services rendered prior to July 1, 1986. 
    (c) (b) Contributions required to be made with respect to 
educational employees of state departments and institutions and 
payments required by section 355.49 shall be paid by the 
departments and institutions in accordance with the provisions 
of sections 355.49 and 355.50. 
    Sec. 19.  [STATE PAYMENT OF EMPLOYER RETIREMENT 
CONTRIBUTIONS.] 
    Notwithstanding any law to the contrary, the state shall 
pay the employer contributions to the teacher retirement fund 
after June 30, 1986, for the circumstances listed in this 
section.  Payments shall be made according to Minnesota Statutes 
1984, section 354.43, subdivision 1.  The state shall pay 
employer contributions: 
    (1) for salaries paid to other than state employees for 
services rendered prior to July 1, 1986, or rendered by AVTI 
employees prior to July 1, 1985; 
    (2) for leaves of absence taken prior to July 1, 1986, or 
taken prior to July 1, 1985, by AVTI employees, and which are 
eligible for state payment of the employer contribution; and 
    (3) for eligible shortages in contributions for services 
rendered prior to July 1, 1986, or rendered by AVTI employees 
prior to July 1, 1985, which are eligible for state payment of 
the employer contribution. 
    Sec. 20.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes is requested to change the headnote 
for section 355.46 to read "[SOCIAL SECURITY CONTRIBUTIONS.]." 
    Sec. 21.  [APPROPRIATIONS.] 
    Subdivision 1.  [TO AGENCIES INDICATED.] The sums indicated 
in this section are appropriated from the general fund to the 
agencies and for the purposes indicated, to be available for the 
fiscal years ending June 30 in the years indicated. 
    Subd. 2.  [TO COMMISSIONER OF FINANCE.] To the commissioner 
of finance for payment of the state's obligation prescribed in 
Minnesota Statutes, sections 354.43, 354.55, subdivision 5, 
354A.12, subdivision 2, 355.46, and 355.49, there is 
appropriated: 
     $216,227,200.....1986, 
     $        500.....1987.  
    Subd. 3.  [TO DEPARTMENT OF EDUCATION.] To the department 
of education to make the aid payments required by section 2, 
there is appropriated:  
 $195,462,000.....1987. 
    This appropriation is for aid for fiscal year 1987 payable 
in fiscal year 1987.  The appropriation is based on an aid 
entitlement of $229,955,300 for fiscal year 1987.  
    Subd. 4.  [PRORATION.] Except as provided in section 
124.14, subdivision 7, the amount appropriated in subdivision 3 
shall not be expended for a purpose other than the purpose 
indicated.  If the appropriation amount in subdivision 3 plus 
the amount of any transfers made according to section 124.14, 
subdivision 7, is insufficient, the aid for that year shall be 
prorated among all qualifying districts. 
    Sec. 22.  [REPEALER; JULY 1, 1986.] 
    Minnesota Statutes 1984, sections 354.43, subdivisions 1, 
4, and 5; 354A.12, subdivision 3; 355.46, subdivisions 1, 2, and 
5; and 355.47, are repealed. 
    Sec. 23.  [EFFECTIVE DATES.] 
    Subdivision 1.  Sections 4 to 18 are effective July 1, 
1985, for covered employees of area vocational technical 
institutes and July 1, 1986, for all other covered employees of 
school districts and other employing units.  
    Subd. 2.  Section 13 is effective July 1, 1986. 
    Approved June 27, 1985

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