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

  

                         Laws of Minnesota 1991 

                        CHAPTER 130-S.F.No. 417 
           An act relating to education; making noncontroversial 
          clarifications and modifications to certain school 
          district and department of education provisions; 
          amending Minnesota Statutes 1990, sections 120.062, 
          subdivisions 4 and 6; 120.0752, subdivision 2; 
          121.612, subdivisions 2 and 5; 122.23, subdivision 18; 
          123.932, subdivision 3; 124.14, subdivision 1; 
          124.155, subdivision 2; 124.195, subdivisions 2, 3, 
          3a, 10, and 11; 124.2139; 124.214, subdivisions 2 and 
          3; 124.244, subdivision 3; 124.83, subdivisions 1 and 
          5; 124A.036, subdivision 5; 124A.24; 124B.03, 
          subdivision 2; 124C.03, subdivision 14; 124C.49; 
          125.12, subdivision 6b; 125.60, subdivision 3; 
          275.065, subdivision 6; 275.125, subdivisions 4, 11d, 
          18, and 20; 275.16; and 354.094, subdivision 1; and 
          Laws 1991, chapter 2, article 2, section 2; repealing 
          Minnesota Statutes 1990, sections 119.01; 119.02; 
          119.03; 119.04, subdivisions 1, 2, and 3; 119.05; 
          119.06; 119.07; 119.08; 119.09; 121.933, subdivision 
          2; 122.23, subdivision 17; 123.932, subdivision 4; 
          124A.02, subdivision 19; 124C.21; 275.125, 
          subdivisions 1, 4a, and 8d; and 354.094, subdivisions 
          1a and 1b. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 120.062, 
subdivision 4, is amended to read: 
    Subd. 4.  [PUPIL APPLICATION PROCEDURES.] In order that a 
pupil may attend a school or program in a nonresident district, 
the pupil's parent or guardian must submit an application to the 
nonresident district.  Before submitting an application, the 
pupil and the pupil's parent or guardian must explore with a 
school guidance counselor, or other appropriate staff member 
employed by the district the pupil is currently attending, the 
pupil's academic or other reason for applying to enroll in a 
nonresident district.  The pupil's application must identify the 
reason for enrolling in the nonresident district.  The parent or 
guardian of a pupil must submit an application by January 1 15 
for initial enrollment beginning the following school year.  The 
application shall be on a form provided by the department of 
education.  A particular school or program may be requested by 
the parent.  Once enrolled in a nonresident district, the pupil 
may remain enrolled and is not required to submit annual or 
periodic applications.  To return to the resident district or to 
transfer to a different nonresident district, the parent or 
guardian of the pupil must provide notice to the resident 
district or apply to a different nonresident district by January 
1 15 for enrollment beginning the following school year. 
    Sec. 2.  Minnesota Statutes 1990, section 120.062, 
subdivision 6, is amended to read: 
    Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
that does not exclude nonresident pupils, according to 
subdivision 3, shall notify the parent or guardian in writing by 
February 1 15 whether the application has been accepted or 
rejected.  If an application is rejected, the district must 
state in the notification the reason for rejection.  The parent 
or guardian shall notify the nonresident district by February 15 
March 1 whether the pupil intends to enroll in the nonresident 
district.  Notice of intent to enroll in the nonresident 
district obligates the pupil to attend the nonresident district 
during the following school year, unless the school boards of 
the resident and the nonresident districts agree in writing to 
allow the pupil to transfer back to the resident district, or 
the pupil's parents or guardians change residence to another 
district.  If a parent or guardian does not notify the 
nonresident district, the pupil may not enroll in that 
nonresident district during the following school year, unless 
the school boards of the resident and nonresident district agree 
otherwise.  The nonresident district shall notify the resident 
district by March 1 15 of the pupil's intent to enroll in the 
nonresident district.  The same procedures apply to a pupil who 
applies to transfer from one participating nonresident district 
to another participating nonresident district. 
    Sec. 3.  Minnesota Statutes 1990, section 120.0752, 
subdivision 2, is amended to read: 
    Subd. 2.  The pupil's parent or guardian must receive the 
approval of the school board of the nonresident district and the 
school board of the resident district.  The approval shall be on 
a form provided by the department of education.  The 
superintendent of the nonresident district shall forward a copy 
of this form to the department of education within ten days of 
its approval.  If the student withdraws from the nonresident 
district the superintendent of that district shall report the 
fact to the department of education.  The nonresident school 
board shall notify the resident school board of the approval.  
    Sec. 4.  Minnesota Statutes 1990, section 121.612, 
subdivision 2, is amended to read: 
    Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
Minnesota academic excellence foundation.  The purpose of the 
foundation shall be to promote academic excellence in Minnesota 
public and nonpublic schools through public-private partnerships.
The foundation shall be a nonprofit organization.  The board of 
directors of the foundation and foundation activities are under 
the direction of the state board of education. 
    Sec. 5.  Minnesota Statutes 1990, section 121.612, 
subdivision 5, is amended to read: 
    Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
    (1) establish and collect membership fees; 
    (2) publish brochures or booklets relating to the purposes 
of the foundation and collect reasonable fees for the 
publications; 
    (3) receive money, grants, and in-kind goods or services 
from nonstate sources for the purposes of the foundation, 
without complying with section 7.09, subdivision 1; 
    (4) contract with consultants; and 
    (5) expend money for awards and other forms of recognition 
and appreciation; and 
    (6) determine procedures and expenditures for awards and 
recognitions to teachers, students, donors, and other people who 
are not employees of the executive branch. 
     Sec. 6.  Minnesota Statutes 1990, section 122.23, 
subdivision 18, is amended to read: 
    Subd. 18.  (a) If no board is provided for under the 
foregoing provision, upon receipt of the assigned identification 
number, The county auditor shall determine a date, not less than 
20 nor more than 60 days from the date of the receipt of the 
that the assigned identification number order setting the 
effective date of the consolidation according to subdivision 13 
was issued, upon which date shall be held a special election in 
the district for the purpose of electing a board of six members 
for terms as follows:  two until the July 1 one year after the 
effective date of the consolidation, two until the expiration of 
one year from said July 1, and two until the expiration of two 
years from said July 1, to hold office until a successor is 
elected and qualifies according to provisions of law governing 
the election of board members in independent districts.  If the 
resolution or petition for consolidation pursuant to subdivision 
2 proposed that the board of the newly created district consists 
of seven members, then seven members shall be elected at this 
election for the terms provided in this clause except that three 
members shall hold office until the expiration of two years from 
said July 1.  If the resolution or petition for consolidation 
pursuant to subdivision 2 proposed the establishment of separate 
election districts, these members shall be elected from separate 
election districts according to the provisions of that 
resolution or petition and of chapter 205A. 
    (b) The county auditor shall give ten days' posted notice 
of election in the area in which the election is to be held and 
also if there be a newspaper published in the proposed new 
district, one weeks' published notice shall be given.  The 
notice shall specify the time, place, and purpose of the 
election. 
    (c) The county may pay the election judges not to exceed $1 
per hour for their services. 
    (d) Any person desiring to be a candidate for a school 
election shall file an application with the county auditor to 
have the applicant's name placed on the ballot for such office, 
specifying the term for which the application is made.  The 
application shall be filed not less than 12 days before the 
election. 
    (e) (d) The county auditor shall prepare, at the expense of 
the county, necessary ballots for the election of officers, 
placing thereon the names of the proposed candidates for each 
office.  The ballots shall be marked and signed as official 
ballots and shall be used exclusively at the election.  The 
county auditor shall determine the number of voting precincts 
and the boundaries of each.  The county auditor shall determine 
the location of polling places and the hours the polls shall be 
open and shall appoint three election judges for each polling 
place who shall act as clerks of election.  Election judges 
shall certify ballots and results to the county auditor for 
tabulation and canvass. 
    (f) (e) After making a canvass and tabulation, the county 
auditor shall issue a certificate of election to the candidate 
for each office who received the largest number of votes cast 
for the office.  The county auditor shall deliver such 
certificate to the person entitled thereto by certified mail, 
and each person so certified shall file an acceptance and oath 
of office with the county auditor within 30 days of the date of 
mailing of the certificate.  A person who fails to qualify prior 
to the time specified shall be deemed to have refused to serve, 
but such filing may be made at any time before action to fill 
vacancy has been taken. 
    (g) (f) The board of each district included in the new 
enlarged district shall continue to maintain school therein 
until the effective date of the consolidation.  Such boards 
shall have power and authority only to make such contracts, to 
do such things as are necessary to maintain properly the schools 
for the period prior to that date, and to certify to the county 
auditor according to levy limitations applicable to the 
component districts the taxes collectible in the calendar year 
when the consolidation becomes effective. 
    (h) (g) It shall be the immediate duty of the newly elected 
board of the new enlarged district, when the members thereof 
have qualified and the board has been organized, to plan for the 
maintenance of the school or schools of the new district for the 
next school year, to enter into the necessary negotiations and 
contracts for the employment of personnel, purchase of equipment 
and supplies, and other acquisition and betterment purposes, 
when authorized by the voters to issue bonds under the 
provisions of chapter 475; and on the effective date of the 
consolidation to assume the full duties of the care, management 
and control of the new enlarged district.  The board of the new 
enlarged district shall give due consideration to the 
feasibility of maintaining such existing attendance centers and 
of establishing such other attendance centers, especially in 
rural areas, as will afford equitable and efficient school 
administration and assure the convenience and welfare of the 
pupils residing in the enlarged district.  The obligations of 
the new board to teachers employed by component districts shall 
be governed by the provisions of section 122.532. 
    Sec. 7.  Minnesota Statutes 1990, section 123.932, 
subdivision 3, is amended to read: 
    Subd. 3.  [NONPUBLIC SCHOOL DEFINED.] "Nonpublic school" 
means any school within the state other than a public 
school, church or religious organization, or home school wherein 
a resident of Minnesota may legally fulfill the 
compulsory school attendance instruction requirements of section 
120.101, which is located within the state, and which meets the 
requirements of Title VI of the Civil Rights Act of 1964 (Public 
Law Number 88-352).  It does not mean a public school. 
    Sec. 8.  Minnesota Statutes 1990, section 124.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state board shall supervise 
distribution of school aids and grants in accordance with law.  
It may make rules consistent with law for the distribution to 
enable districts to perform efficiently the services required by 
law and further education in the state, including reasonable 
requirements for the reports and accounts to it as will assure 
accurate and lawful apportionment of aids.  State and federal 
aids and discretionary or entitlement grants distributed by the 
state board shall not be subject to the contract approval 
procedures of the commissioner of administration or to chapter 
16 16A or 16B.  The commissioner of education shall adopt 
internal procedures for administration and monitoring of aids 
and grants. 
     Sec. 9.  Minnesota Statutes 1990, section 124.155, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADJUSTMENT TO AIDS.] The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (a) general education aid authorized in sections 124A.23 
and 124B.20; 
    (b) secondary vocational aid authorized in section 124.573; 
    (c) special education aid authorized in section 124.32; 
    (d) secondary vocational aid for handicapped children 
authorized in section 124.574; 
    (e) aid for pupils of limited English proficiency 
authorized in section 124.273; 
    (f) transportation aid authorized in section 124.225; 
    (g) community education programs aid authorized in section 
124.2713; 
    (h) adult education aid authorized in section 124.26; 
    (i) early childhood family education aid authorized in 
section 124.2711; 
    (j) capital expenditure aid authorized in sections 124.243, 
124.244, and 124.83; 
    (k) education district aid according to section 124.2721; 
    (l) secondary vocational cooperative aid according to 
section 124.575; 
    (m) assurance of mastery aid according to section 124.311; 
    (n) individual learning and development aid according to 
section 124.331; 
    (o) homestead credit under section 273.13 for taxes payable 
in 1989 and additional homestead and agricultural credit 
guarantee under section 273.1398, subdivision 5, for taxes 
payable in 1990 and thereafter; 
    (n) (p) agricultural credit under section 273.132 for taxes 
payable in 1989 and additional homestead and agricultural credit 
guarantee under section 273.1398, subdivision 5, for taxes 
payable in 1990 and thereafter; 
    (o) (q) homestead and agricultural credit aid and disparity 
reduction aid authorized in section 273.1398, subdivision 2; and 
    (p) (r) attached machinery aid authorized in section 
273.138, subdivision 3.  
    The commissioner of education shall schedule the timing of 
the adjustments to state aids and credits specified in 
subdivision 1, as close to the end of the fiscal year as 
possible. 
    Sec. 10.  Minnesota Statutes 1990, section 124.195, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] (a) The term "other district 
receipts" means payments by county treasurers pursuant to 
section 276.10, apportionments from the school endowment fund 
pursuant to section 124.09, apportionments by the county auditor 
pursuant to section 124.10, subdivision 2, and payments to 
school districts by the commissioner of revenue pursuant to 
chapter 298.  
    (b) The term "cumulative amount guaranteed" means the sum 
of the following: 
    (1) one-third of the final adjustment payment according to 
subdivision 6; plus 
    (2) the product of 
    (i) the cumulative disbursement percentage shown in 
subdivision 3; times 
    (ii) the sum of 
    85 percent of the estimated aid and credit entitlements 
paid according to subdivision 10; plus 
    100 percent of the entitlements paid according to 
subdivisions 8 and 9; plus 
    the other district receipts; plus 
    the final adjustment payment according to subdivision 6.  
    (c) The term "payment date" means the date on which state 
payments to school districts are made by the electronic funds 
transfer method.  If a payment date falls on a Saturday, the 
payment shall be made on the immediately preceding business 
day.  If a payment date falls on a Sunday, the payment shall be 
made on the immediately following business day.  If a payment 
date falls on a weekday which is a legal holiday, the payment 
shall be made on the immediately preceding business day.  The 
commissioner of education may make payments on dates other than 
those listed in subdivision 3, but only for portions of payments 
from any preceding payment dates which could not be processed by 
the electronic funds transfer method due to documented 
extenuating circumstances. 
    Sec. 11.  Minnesota Statutes 1990, section 124.195, 
subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
of education shall pay to a school district on the dates 
indicated an amount computed as follows:  the cumulative amount 
guaranteed minus the sum of (a) the district's other district 
receipts through the current payment, and (b) the aid and credit 
payments through the immediately preceding payment.  For 
purposes of this computation, the payment dates and the 
cumulative disbursement percentages are as follows:  
                         Payment date               Percentage 
Payment 1    First business day prior to July 15:       2.25
Payment 2    First business day prior to July 30:       4.50 
Payment 3    First business day prior to August 15:     6.75 
Payment 4    First business day prior to August 30:     9.0 
Payment 5    First business day prior to September 15:  the
             greater of (a) one-half of the final adjustment 
             for the prior fiscal year for the state paid 
             property tax credits established in section 
             273.1392, or (b) the amount needed to provide
             12.75 percent 
Payment 6    First business day prior to September 30:  the 
             greater of (a) one-half of the final adjustment
             for the prior fiscal year for the state paid
             property tax credits established in section 
             273.1392, or (b) the amount needed to provide 16.5
             percent
Payment 7    First business day prior to October 15:  the
             greater of (a) one-half of the final adjustment
             for the prior fiscal year for all aid entitlements
             except state paid property tax credits, or 
             (b) the amount needed to provide 20.75 percent
Payment 8    First business day prior to October 30:  the
             greater of (a) one-half of the final adjustment
             for the prior fiscal year for all aid 
             entitlements except state paid property tax
             credits, or (b) the amount needed to provide
             25.0 percent
Payment 9    First business day prior to November 15:   31.0
Payment 10   First business day prior to November 30:   37.0
Payment 11   First business day prior to December 15:   40.0
Payment 12   First business day prior to December 30:   43.0
Payment 13   First business day prior to January 15:    47.25
Payment 14   First business day prior to January 30:    51.5
Payment 15   First business day prior to February 15:   56.0
Payment 16   First business day prior to February 28:   60.5
Payment 17   First business day prior to March 15:      65.25
Payment 18   First business day prior to March 30:      70.0
Payment 19   First business day prior to April 15:      73.0
Payment 20   First business day prior to April 30:      79.0 
Payment 21   First business day prior to May 15:        82.0 
Payment 22   First business day prior to May 30:        90.0 
Payment 23   First business day prior to June 20:      100.0
    Sec. 12.  Minnesota Statutes 1990, section 124.195, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [APPEAL.] The commissioner may revise the 
payment dates and percentages in subdivision 3 and Laws 1986, 
First Special Session chapter 1, article 5, section 9 for a 
district if it is determined that there is an emergency or there 
are serious cash flow problems in the district that cannot be 
resolved by issuing warrants or other forms of indebtedness.  
The commissioner shall establish a process and criteria for 
school districts to appeal the payment dates and percentages 
established in subdivision 3 and Laws 1986, First Special 
Session chapter 1 article 5, section 9. 
    Sec. 13.  Minnesota Statutes 1990, section 124.195, 
subdivision 10, is amended to read: 
    Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
subdivisions 8 and, 9, and 11, each fiscal year, all education 
aids and credits in this chapter and chapters 121, 123, 124A, 
124B, 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. 14.  Minnesota Statutes 1990, section 124.195, 
subdivision 11, is amended to read: 
    Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
according to sections 123.931 to 123.947 for pupils attending 
nonpublic schools by October 31 of each fiscal year. as follows: 
    (1) an advance payment by November 30 equal to 85 percent 
of the estimated entitlement for the current fiscal year; and 
    (2) a final payment by October 31 of the following fiscal 
year, adjusted for actual data.  
    If a payment advance to meet cash flow needs is requested 
by a district and approved by the commissioner, the state shall 
pay basic transportation aid according to section 124.225, 
subdivision 8b attributable to pupils attending nonpublic 
schools by October 31.  This subdivision applies to both the 
final adjustment payment for the prior fiscal year and the 
payment for the current fiscal year, as established in 
subdivision 10. 
    Sec. 15.  Minnesota Statutes 1990, section 124.2139, is 
amended to read: 
    124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.] 
    The commissioner of revenue shall reduce the homestead 
credit payments under section 273.13 for fiscal year 1990, and 
the sum of the additional homestead and agricultural credit 
guarantee, homestead and agricultural credit aid, and disparity 
reduction aid payments under section 273.1398 for fiscal years 
1991 and thereafter made to school districts by the product of:  
    (1) the district's fiscal year 1984 payroll for coordinated 
plan members of the public employees retirement association, 
times 
    (2) the difference between the employer contribution rate 
in effect prior to July 1, 1984, and the total employer 
contribution rate in effect after June 30, 1984.  
    Sec. 16.  Minnesota Statutes 1990, section 124.214, 
subdivision 2, is amended to read: 
    Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
sections 270.07, 375.192, or otherwise, the net tax capacity of 
any school district for any taxable year is changed after the 
taxes for that year have been spread by the county auditor and 
the local tax rate as determined by the county auditor based 
upon the original net tax capacity is applied upon the changed 
net tax capacities, the county auditor shall, prior to February 
1 of each year, certify to the commissioner of education the 
amount of any resulting net revenue loss that accrued to the 
school district during the preceding year.  Each year, the 
commissioner shall pay an abatement adjustment to the district 
in an amount calculated according to the provisions of this 
subdivision.  This amount shall be deducted from the amount of 
the levy authorized by section 275.48.  The abatement adjustment 
shall be recognized as revenue in the fiscal year in which it is 
received.  The amount of the abatement adjustment shall be the 
product of:  
    (1) the net revenue loss as certified by the county 
auditor, times 
    (2) the ratio of:  
    (a) the sum of the amounts of the district's certified levy 
in the preceding October year according to the following:  
    (i) section 124A.23 if the district receives general 
education aid according to that section, or section 124B.20, if 
the education district of which the district is a member 
receives general education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.243, if the district receives capital 
expenditure facilities aid according to that section; 
    (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (v) section 124.83, if the district receives health and 
safety aid according to that section; 
    (vi) section 275.125, subdivision 8, clauses (a) and 
(b) sections 124.2713, 124.2714, and 124.2715, if the district 
receives community education aid for community education 
programs according to section 124.271 any of those sections; and 
    (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; and 
    (viii) section 275.125, subdivision 6f, if the district 
receives exceptional need aid according to section 124.217; 
    (b) to the total amount of the district's certified levy in 
the preceding October, plus or minus auditor's adjustments.  
    Sec. 17.  Minnesota Statutes 1990, section 124.214, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
increment is made to a school district pursuant to section 
469.176, subdivision 2, or upon decertification of a tax 
increment district, the school district's aid and levy 
limitations must be adjusted for the fiscal year in which the 
excess tax increment is paid under the provisions of this 
subdivision. 
    (a) An amount must be subtracted from the school district's 
aid for the current fiscal year equal to the product of: 
    (1) the amount of the payment of excess tax increment to 
the school district, times 
    (2) the ratio of: 
    (A) the sum of the amounts of the school district's 
certified levy for the fiscal year in which the excess tax 
increment is paid according to the following: 
    (i) section 124A.23, if the district receives general 
education aid according to that section, or section 124B.20, if 
the education district of which the district is a member 
receives general education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the school 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.243, if the district receives capital 
expenditure facilities aid according to that section; 
    (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (v) section 124.83, if the district receives health and 
safety aid according to that section; 
    (vi) section 275.125, subdivision 8, clauses (a) and 
(b) sections 124.2713, 124.2714, and 124.2715, if the district 
receives community education aid for community education 
programs according to section 124.271 any of those sections; and 
    (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; and 
    (viii) section 275.125, subdivision 6f, if the district 
receives exceptional need aid according to section 124.217; 
    (B) to the total amount of the school district's certified 
levy for the fiscal year, plus or minus auditor's adjustments. 
    (b) An amount must be subtracted from the school district's 
levy limitation for the next levy certified equal to the 
difference between: 
    (1) the amount of the distribution of excess increment, and 
    (2) the amount subtracted from aid pursuant to clause (a). 
    If the aid and levy reductions required by this subdivision 
cannot be made to the aid for the fiscal year specified or to 
the levy specified, the reductions must be made from aid for 
subsequent fiscal years, and from subsequent levies.  The school 
district shall use the payment of excess tax increment to 
replace the aid and levy revenue reduced under this subdivision. 
    This subdivision applies only to the total amount of excess 
increments received by a school district for a calendar year 
that exceeds $25,000. 
    Sec. 18.  Minnesota Statutes 1990, section 124.244, 
subdivision 3, is amended to read: 
    Subd. 3.  [CAPITAL EXPENDITURE EQUIPMENT AID.] A district's 
capital expenditure equipment aid is the difference between the 
capital expenditure equipment revenue and the capital 
expenditure equipment levy.  If a district does not levy the 
entire amount permitted, capital expenditure equipment aid must 
be reduced in proportion to the actual amount levied.  Capital 
expenditure equipment aid must not be reduced as a result of a 
reduction of its capital expenditure equipment levy under 
section 121.912 or 124.2445. 
    Sec. 19.  Minnesota Statutes 1990, section 124.83, 
subdivision 1, is amended to read: 
    Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
health and safety revenue for any fiscal year a district, 
including an intermediate district, must submit to the 
commissioner of education an application for aid and levy by 
June 1 in the previous school year the date determined by the 
commissioner.  The application may be for hazardous substance 
removal, fire code compliance, or life safety repairs.  The 
application must include a health and safety program adopted by 
the school district board.  The program must include the 
estimated cost of the program by fiscal year. 
    Sec. 20.  Minnesota Statutes 1990, section 124.83, 
subdivision 5, is amended to read: 
    Subd. 5.  [HEALTH AND SAFETY AID.] A district's health and 
safety aid is the difference between its health and safety 
revenue and its health and safety levy.  If a district does not 
levy the entire amount permitted, health and safety aid must be 
reduced in proportion to the actual amount levied.  Health and 
safety aid may not be reduced as a result of reducing a 
district's health and safety levy according to section 121.912.  
    Sec. 21.  Minnesota Statutes 1990, section 124A.036, 
subdivision 5, is amended to read: 
    Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
education aid for districts must be adjusted for each pupil, 
excluding a handicapped pupil as defined in section 120.03 or a 
nonhandicapped pupil as defined by section 120.181, attending a 
nonresident district under sections 120.062, 120.075, 120.0751, 
120.0752, 123.3515, 124C.45 to 124C.48, and 126.22.  The 
adjustments must be made according to this subdivision. 
    (a) General education aid paid to a resident district must 
be reduced by an amount equal to the general education revenue 
exclusive of compensatory revenue attributable to the pupil in 
the resident district. 
    (b) General education aid paid to a district serving a 
pupil in programs listed in this subdivision shall be increased 
by an amount equal to the general education revenue exclusive of 
compensatory revenue attributable to the pupil in the 
nonresident district.  
    (c) If the amount of the reduction to be made from the 
general education aid of the resident district is greater than 
the amount of general education aid otherwise due the district, 
the excess reduction must be made from other state aids due the 
district. 
    (d) The district of residence shall pay tuition to a 
district or an area learning center, operated according to 
paragraph (e), providing special instruction and services to a 
handicapped pupil, as defined in section 120.03, or a pupil, as 
defined in section 120.181, who is enrolled in a program listed 
in this subdivision.  The tuition shall be equal to (1) the 
actual cost of providing special instruction and services to the 
pupil, including a proportionate amount for debt service and for 
capital expenditure facilities and equipment, and debt service 
but not including any amount for transportation, minus (2) the 
amount of special education aid, attributable to that pupil, 
that is received by the district providing special instruction 
and services. 
    (e) An area learning center operated by an educational 
cooperative service unit, intermediate district, education 
district, or a joint powers cooperative may elect through the 
action of the constituent boards to charge tuition for 
nonhandicapped pupils rather than to calculate general education 
aid adjustments under paragraph (a), (b), or (c).  The tuition 
must be equal to the greater of the average general education 
revenue per pupil unit attributable to the student pupil, or the 
average per pupil cost of operating the area learning 
center actual cost of providing the instruction, excluding 
transportation costs, if the pupil meets the requirements of 
section 120.03 or 120.181 whichever is less. 
    Sec. 22.  Minnesota Statutes 1990, section 124A.24, is 
amended to read: 
    124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 124A.23, subdivision 3, an amount must be 
deducted from state aid authorized in this chapter and chapter 
chapters 124 and 124B, receivable for the same school year, and 
from other state payments receivable for the same school year 
authorized in chapter 273.  The aid in section 124.646 must not 
be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education tax rate, according to section 
124A.23, times the district's adjusted net tax capacity used to 
determine the general education aid for the same school year; 
and 
    (2) the district's general education revenue, excluding 
supplemental revenue, for the same school year, according to 
section 124A.22. 
    However, for fiscal year 1989, the amount of the deduction 
shall be one-fourth of the difference between clauses (1) and 
(2); for fiscal year 1990, the amount of the deduction shall be 
one-third of the difference between clauses (1) and (2); for 
fiscal year 1991, the amount of the deduction shall be one-half 
of the difference between clauses (1) and (2); for fiscal year 
1992, the amount of the deduction shall be four-sixths of the 
difference between clauses (1) and (2); and for fiscal year 
1993, the amount of the deduction shall be five-sixths of the 
difference between clauses (1) and (2).  
    Sec. 23.  Minnesota Statutes 1990, section 124B.03, 
subdivision 2, is amended to read: 
     Subd. 2.  [REFERENDUM LEVY.] (a) The amount of general 
education revenue certified by an education district board under 
section 124B.10 may be increased in any amount that is approved 
by the voters of the education district at a referendum called 
for the purpose.  The referendum may be called by the education 
district board or must be called by the education district board 
upon written petition of qualified voters of the education 
district.  The referendum must be held on the first Tuesday 
after the first Monday in November.  The ballot shall state the 
maximum amount of the increased levy as a percentage of net tax 
capacity, the amount that will be raised by that local tax rate 
in the first year it is to be levied, and that the local tax 
rate must be used to finance school operations.  The ballot 
shall designate a specific number of years for which the 
referendum authorization applies.  The ballot may contain a text 
with the information required in this subdivision and a question 
stating substantially the following:  
    "Shall the increase in the levy proposed by (petition to) 
the board of ........., Education District No. .., be approved?" 
    (b) If approved, the amount provided by the approved local 
tax rate applied to the net tax capacity for the year before the 
year the levy is certified is authorized for certification for 
the number of years approved, if applicable, or until revoked or 
reduced by the voters of the education district at a later 
referendum. 
     (c) The education district board shall prepare and deliver 
by first class mail at least 15 days but no more than 30 days 
prior to the day of the election to each taxpayer at the address 
listed on each member district's current year's assessment roll, 
a notice of the referendum and the proposed levy increase.  For 
the purpose of giving mailed notice under this subdivision, 
owners shall be those shown to be owners on the records of the 
county auditor or, in any county where tax statements are mailed 
by the county treasurer, on the records of the county 
treasurer.  Every property owner whose name does not appear on 
the records of the county auditor or the county treasurer shall 
be deemed to have waived this mailed notice unless the owner has 
requested in writing that the county auditor or county 
treasurer, as the case may be, include the name on the records 
for this purpose.  The notice must project the anticipated 
amount of increase in annual dollars and annual percentage for 
typical residential homesteads, agricultural homesteads, 
apartments, and commercial-industrial property within the 
education district. 
     (d) The notice must include the following statement:  "In 
1989, the legislature reduced property taxes for education by 
increasing the state share of funding for education.  However, 
state aid for cities and townships was reduced by a 
corresponding amount.  As a result, property taxes for cities 
and townships may increase.  Passage of this referendum will 
result in an increase in your property taxes." 
    (e) A referendum on the question of revoking or reducing 
the increased levy amount authorized under paragraph (a) may be 
called by the education district board and must be called by the 
education district board upon the written petition of qualified 
voters of the education district.  A levy approved by the voters 
of the education district under paragraph (a) must be made at 
least once before it is subject to a referendum on its 
revocation or reduction for subsequent years.  Only one election 
may be held to revoke or reduce a levy for any specific year and 
for later years. 
    (f) A petition authorized by paragraph (a) or (e) shall be 
effective if signed by a number of qualified voters in excess of 
15 percent of the average number of voters at the two most 
recent districtwide school elections in all the member school 
districts.  A referendum invoked by petition must be held on the 
day specified in paragraph (a).  
    (g) The approval of 50 percent plus one of those voting on 
the question is required to pass a referendum. 
    (h) Within 30 At least 15 days after before the referendum, 
the education district holds a referendum according to this 
subdivision, the education district shall notify submit a copy 
of the notice required under paragraph (c) to the commissioner 
of education of.  Within 15 days after the results of the 
referendum have been certified by the education district board, 
or in the case of a recount, after the certification of the 
results of the recount by the canvassing board, the education 
district shall notify the commissioner of education of the 
results of the referendum. 
    (i) The department shall allocate the amount certified by 
the education district board under paragraph (a) or subdivision 
1 proportionately among the member districts based on net tax 
capacity.  The member districts shall levy the amount allocated. 
     (j) Each year, a member district shall transfer referendum 
revenue to the education district board according to this 
subdivision.  By June 20 and November 30 of each year, an amount 
must be transferred equal to: 
    (1) 50 percent times 
    (2) the amount certified in this subdivision minus 
homestead and agricultural credit aid allocated for that levy 
according to section 273.1398, subdivision 6. 
    Sec. 24.  Minnesota Statutes 1990, section 124C.03, 
subdivision 14, is amended to read: 
    Subd. 14.  [GRANT SCHEDULE.] The commissioner of the state 
planning agency must shall award initial grants by April 1, 1990.
Beginning in 1991, grants must be awarded by July September 1 of 
each year.  Grants may be awarded for a period not to exceed 24 
months. 
    Sec. 25.  Minnesota Statutes 1990, section 124C.49, is 
amended to read: 
    124C.49 [DESIGNATION AS CENTER.] 
    The commissioner of education, in cooperation with the 
state board of education, shall establish a process for state 
designation and approval of area learning centers that meet the 
provisions of sections 124C.45 to 124C.48. 
    The four area learning centers designated in 1988 as 
exemplary shall be subject to the state approval process 
beginning July 1, 1990. 
    Area learning center designation shall begin July 1, 1988. 
    Sec. 26.  Minnesota Statutes 1990, section 125.12, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [UNREQUESTED LEAVE OF ABSENCE.] The school board 
may place on unrequested leave of absence, without pay or fringe 
benefits, as many teachers as may be necessary because of 
discontinuance of position, lack of pupils, financial 
limitations, or merger of classes caused by consolidation of 
districts.  The unrequested leave shall be effective at the 
close of the school year.  In placing teachers on unrequested 
leave, the board shall be governed by the following provisions: 
     (a) The board may place probationary teachers on 
unrequested leave first in the inverse order of their 
employment.  No teacher who has acquired continuing contract 
rights shall be placed on unrequested leave of absence while 
probationary teachers are retained in positions for which the 
teacher who has acquired continuing contract rights is licensed; 
     (b) Teachers who have acquired continuing contract rights 
shall be placed on unrequested leave of absence in fields in 
which they are licensed in the inverse order in which they were 
employed by the school district.  In the case of equal 
seniority, the order in which teachers who have acquired 
continuing contract rights shall be placed on unrequested leave 
of absence in fields in which they are licensed shall be 
negotiable; 
     (c) Notwithstanding the provisions of clause (b), no 
teacher shall be entitled to exercise any seniority when that 
exercise results in that teacher being retained by the district 
in a field for which the teacher holds only a provisional 
license, as defined by the board of teaching, unless that 
exercise of seniority results in the placement on unrequested 
leave of absence of another teacher who also holds a provisional 
license in the same field.  The provisions of this clause shall 
not apply to vocational education licenses; 
     (d) Notwithstanding clauses (a), (b) and (c), if the 
placing of a probationary teacher on unrequested leave before a 
teacher who has acquired continuing rights, the placing of a 
teacher who has acquired continuing contract rights on 
unrequested leave before another teacher who has acquired 
continuing contract rights but who has greater seniority, or the 
restriction imposed by the provisions of clause (c) would place 
the district in violation of its affirmative action program, the 
district may retain the probationary teacher, the teacher with 
less seniority, or the provisionally licensed teacher; 
         (e) Teachers placed on unrequested leave of absence shall 
be reinstated to the positions from which they have been given 
leaves of absence or, if not available, to other available 
positions in the school district in fields in which they are 
licensed.  Reinstatement shall be in the inverse order of 
placement on leave of absence.  No teacher shall be reinstated 
to a position in a field in which the teacher holds only a 
provisional license, other than a vocational education license, 
while another teacher who holds a nonprovisional license in the 
same field remains on unrequested leave.  The order of 
reinstatement of teachers who have equal seniority and who are 
placed on unrequested leave in the same school year shall be 
negotiable; 
    (f) No appointment of a new teacher shall be made while 
there is available, on unrequested leave, a teacher who is 
properly licensed to fill such vacancy, unless the teacher fails 
to advise the school board within 30 days of the date of 
notification that a position is available to that teacher who 
may return to employment and assume the duties of the position 
to which appointed on a future date determined by the board; 
    (g) A teacher placed on unrequested leave of absence may 
engage in teaching or any other occupation during the period of 
this leave; 
    (h) The unrequested leave of absence shall not impair the 
continuing contract rights of a teacher or result in a loss of 
credit for previous years of service; 
    (i) The unrequested leave of absence of a teacher who is 
placed on unrequested leave of absence prior to January 1, 1978 
and who is not reinstated shall continue for a period of two 
years after which the right to reinstatement shall terminate. 
The unrequested leave of absence of a teacher who is placed on 
unrequested leave of absence on or after January 1, 1978 and who 
is not reinstated shall continue for a period of five years, 
after which the right to reinstatement shall terminate; provided 
the teacher's right to reinstatement shall also terminate if the 
teacher fails to file with the board by April 1 of any year a 
written statement requesting reinstatement; 
    (j) The same provisions applicable to terminations of 
probationary or continuing contracts in subdivisions 3 and 4 
shall apply to placement on unrequested leave of absence; 
    (k) Nothing in this subdivision shall be construed to 
impair the rights of teachers placed on unrequested leave of 
absence to receive unemployment compensation if otherwise 
eligible. 
    Sec. 27.  Minnesota Statutes 1990, 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. 28.  Minnesota Statutes 1990, section 275.065, 
subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 15 and December 20, the governing bodies of the 
city and county shall each hold a public hearing to adopt its 
final budget and property tax levy for taxes payable in the 
following year, and the governing body of the school district 
shall hold a public hearing to adopt its property tax levy for 
taxes payable in the following year.  
    At the hearing, the taxing authority, other than a school 
district, may amend the proposed budget and property tax levy 
and must adopt a final budget and property tax levy, and the 
school district may amend the proposed property tax levy and 
must adopt a final property tax levy.  
    The property tax levy certified under section 275.07 by a 
city, county, or school district must not exceed the proposed 
levy determined under subdivision 1, except by an amount up to 
the sum of the following amounts: 
    (1) the amount of a school district levy whose voters 
approved a referendum to increase taxes under section 124A.03, 
subdivision 2, 124B.03, subdivision 2, or 124.82, subdivision 3, 
after the proposed levy was certified; 
    (2) the amount of a city or county levy approved by the 
voters under section 275.58 after the proposed levy was 
certified; 
    (3) the amount of a levy to pay principal and interest on 
bonds issued or approved by the voters under section 475.58 
after the proposed levy was certified; 
     (4) the amount of a levy to pay costs due to a natural 
disaster occurring after the proposed levy was certified, if 
that amount is approved by the commissioner of revenue under 
subdivision 6a; 
     (5) the amount of a levy to pay tort judgments against a 
taxing authority that become final after the proposed levy was 
certified, if the amount is approved by the commissioner of 
revenue under subdivision 6a; and 
      (6) the amount of an increase in levy limits certified to 
the taxing authority by the commissioner of revenue or the 
commissioner of education after the proposed levy was certified. 
     At the hearing the percentage increase in property taxes 
proposed by the taxing authority, if any, and the specific 
purposes for which property tax revenues are being increased 
must be discussed.  During the discussion, the governing body 
shall hear comments regarding a proposed increase and explain 
the reasons for the proposed increase.  The public shall be 
allowed to speak and to ask questions prior to adoption of any 
measures by the governing body.  The governing body, other than 
the governing body school districts, shall adopt its final 
property tax levy prior to adopting its final budget. 
     The hearing must be held after 5:00 p.m. if scheduled on a 
day other than Saturday.  No hearing may be held on a Sunday.  
The county auditor shall provide for the coordination of hearing 
dates for all taxing authorities within the county. 
     By August 1, the county auditor shall notify the clerk of 
each school district within the county of the dates that the 
county board has designated for its hearing and any continuation 
under subdivision 3.  By August 15, each school board shall 
certify to the county auditors of the counties in which the 
school district is located the dates on which it elects to hold 
its hearings and any continuations under subdivision 3.  If a 
school board does not certify the dates by August 15, the 
auditor will assign the hearing date.  The dates elected or 
assigned must not conflict with the county hearing dates.  By 
August 20, the county auditor shall notify the clerks of the 
cities within the county of the dates on which the county and 
school districts have elected to hold their hearings.  At the 
time a city certifies its proposed levy under subdivision 1 it 
shall certify the dates on which it elects to hold its hearings 
and any continuations under subdivision 3.  The city must not 
select dates that conflict with those elected by or assigned to 
the counties and school districts in which the city is located.  
     The hearing dates so elected or assigned must be designated 
on the notices required under subdivision 3.  
     This subdivision does not apply to towns and special taxing 
districts.  
    Sec. 29.  Minnesota Statutes 1990, section 275.125, 
subdivision 4, is amended to read: 
    Subd. 4.  [MISCELLANEOUS LEVY AUTHORIZATIONS.] (a) A school 
district may levy the amounts necessary to make payments for 
bonds issued and for interest thereon, including the bonds and 
interest thereon, issued as authorized by Minnesota Statutes 
1974, section 275.125, subdivision 3, clause (7)(C); the amounts 
necessary for repayment of debt service loans and capital loans; 
the amounts necessary to pay the district's obligations under 
section 6.62; the amount authorized for liabilities of dissolved 
districts pursuant to section 122.45; the amounts necessary to 
pay the district's obligations under section 268.06, subdivision 
25; the amounts necessary to pay for job placement services 
offered to employees who may become eligible for benefits 
pursuant to section 268.08; the amounts necessary to pay the 
district's obligations under section 127.05; the amounts 
authorized by section 122.531; the amounts necessary to pay the 
district's obligations under section 122.533; and for severance 
pay required by this section sections 120.08, subdivision 3, and 
section 122.535, subdivision 6. 
    (b) An education district that negotiates a collective 
bargaining agreement for teachers under section 122.937 may 
certify to the department of education the amount necessary to 
pay all of the member districts' obligations and the education 
district's obligations under section 268.06, subdivision 25. 
    The department of education must allocate the levy amount 
proportionately among the member districts based on adjusted net 
tax capacity.  The member districts must levy the amount 
allocated. 
     (c) Each year, a member district of an education district 
that levies under this subdivision must transfer the amount of 
revenue certified under paragraph (b) to the education district 
board according to this subdivision.  By June 20 and November 30 
of each year, an amount must be transferred equal to: 
     (1) 50 percent times 
     (2) the amount certified in paragraph (b) minus homestead 
and agricultural credit aid allocated for that levy according to 
section 273.1398, subdivision 6. 
    Sec. 30.  Minnesota Statutes 1990, section 275.125, 
subdivision 11d, is amended to read: 
    Subd. 11d.  [EXTRA CAPITAL EXPENDITURE LEVY FOR LEASING 
BUILDINGS.] When a district finds it economically advantageous 
to rent or lease a building for any instructional purposes and 
it determines that the capital expenditure facilities revenues 
authorized under section 124.243 are insufficient for this 
purpose, it may apply to the commissioner for permission to make 
an additional capital expenditure levy for this purpose.  An 
application for permission to levy under this subdivision must 
contain financial justification for the proposed levy, the terms 
and conditions of the proposed lease, and a description of the 
space to be leased and its proposed use.  The criteria for 
approval of applications to levy under this subdivision must 
include:  the reasonableness of the price, the appropriateness 
of the space to the proposed activity, the feasibility of 
transporting pupils to the leased building, conformity of the 
lease to the laws and rules of the state of Minnesota, and the 
appropriateness of the proposed lease to the space needs and the 
financial condition of the district.  The commissioner must not 
authorize a levy under this subdivision in an amount greater 
than the cost to the district of renting or leasing a building 
for approved purposes.  The proceeds of this levy must not be 
used for leasing or renting a facility owned by a district or 
for custodial or other maintenance services.  A district may not 
levy under this subdivision for the purpose of leasing or 
renting a district-owned building to itself. 
    Sec. 31.  Minnesota Statutes 1990, section 275.125, 
subdivision 18, is amended to read: 
    Subd. 18.  [LEVY INFORMATION.] By September 15 of each year 
each district shall notify the commissioner of education of the 
proposed levies in compliance with the levy limitations of this 
section and chapters 124, 124A, and 124B, 136C, and 136D.  By 
January 15 of each year each district shall notify the 
commissioner of education of the final levies certified.  The 
commissioner of education shall prescribe the form of these 
notifications and may request any additional information 
necessary to compute certified levy amounts. 
    Sec. 32.  Minnesota Statutes 1990, section 275.125, 
subdivision 20, is amended to read: 
    Subd. 20.  [ESTIMATES.] The computation of levy limitations 
pursuant to this section and chapter chapters 124, 124A, 124B, 
136C, and 136D shall be based on estimates where necessary.  If 
as a result of using estimates for these computations the amount 
of any levy is different from the amount which could actually 
have been levied if actual data had been available, levy 
limitations in the first year when the actual data is known 
shall be adjusted to reflect for this difference.  The amount of 
any adjustment to levy limitations pursuant to this subdivision 
shall be recognized as revenue in the school year when the levy 
for which the levy limitation is so adjusted is recognized as 
revenue. 
    Sec. 33.  Minnesota Statutes 1990, section 275.16, is 
amended to read: 
    275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 
    If any such municipality shall return to the county auditor 
a levy greater than permitted by chapters 124, 124A, 124B, 136C, 
and 136D and sections 275.124 to 275.16, such county auditor 
shall extend only such amount of taxes as the limitations herein 
prescribed will permit; provided, if such levy shall include any 
levy for the payment of bonded indebtedness or judgments, such 
levies for bonded indebtedness or judgments shall be extended in 
full, and the remainder of the levies shall be reduced so that 
the total thereof, including levies for bonds and judgments, 
shall not exceed such amount as the limitations herein 
prescribed will permit.  
    Sec. 34.  Minnesota Statutes 1990, 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 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.  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 the later of June 30 
of each fiscal year for which service credit is received or 
within 30 days after first notification of the amount due, if 
requested by the member, is given by the association.  No 
payment is permitted after the following September 30.  Payments 
received after June 30 must include six percent interest from 
June 30 through the end of the month in which payment is 
received. 
    Sec. 35.  Laws 1991, chapter 2, article 2, section 2, is 
amended to read: 
Sec. 2.  APPROPRIATION REDUCTIONS 
 The general fund appropriations in 
Laws 1989, chapter 329, as amended 
by Laws 1990, chapter 562, 
articles 6, 7, and 9, are reduced 
by the listed amounts.  All 
reductions are for fiscal year 
1991 only. 
(a) Transportation aid for enrollment options        (25,400)
                                                     (25,300)
(b) Summer special education aid                    (759,800)
                                                    (727,900)
(c) Secondary vocational handicapped aid          (1,500,400)
                                                  (1,836,400)
(d) Assurance of mastery aid                        (849,000)
                                                    (659,300)
(e) Individualized learning and development aid     (429,000)
                                                    (350,500)
(f) Adult graduation aid                            (426,000)
                                                    (527,000)
(g) Health and developmental screening aid        (1,360,800)
                                                  (1,232,900)
(h) Secondary vocational cooperative aid              (5,300)
                                                        (200)
(i) Cooperation and combination aid                   (2,900)
(j) PER process aid                                     (500)
(k) Tobacco use prevention aid                        (2,700)
                                                      (2,300)
(l) (j) Career teacher aid                          (222,600)
(m) (k) Educational cooperative service unit loans  (500,000)
(n) (l) Adult education - basic skills evaluation    (75,000)
(o) (m) Department of education                     (136,000)
 None of this reduction shall be 
taken from the appropriations for 
the Faribault academies. 
(p) (n) Minnesota center for arts education         (200,000)
(q) (o) Task force on mathematics, science, technology,
and international education                          (33,000)
     Sec. 36.  [MECC SALES OR USE TAXES.] 
    Any sales or use taxes collected by the commissioner of 
revenue from the Minnesota Educational Computing Consortium with 
respect to transactions occurring prior to January 5, 1991 shall 
be deposited in the permanent school fund. 
    Sec. 37.  [INSTRUCTION TO REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall recodify: 
    (1) section 124C.01 as a section in chapter 120; 
    (2) sections 124C.22 to 124C.25 as sections in chapter 120, 
121, or 126; 
    (3) sections 124C.26 to 124C.31 as sections in chapter 120, 
121, or 125; 
    (4) section 124C.61 as a section in chapter 126; 
    (5) section 275.125, subdivisions 5, 5a, 5b, 5c, 5e, 5f, 
5g, and 5h, as section 124.226; and 
    (6) section 275.125, subdivisions 4, 6a, 6e, 6h, 6i, 8c, 
8e, 9, 9a, 9b, 9c, 10, 11d, 11e, 11f, 12a, 14a, 15, 17, 18, 20, 
and 21, as a section in chapter 124. 
    The revisor shall change all cross-references to the 
recodified subdivisions and sections. 
    Sec. 38.  [REPEALER.] 
    Subdivision 1.  [GENERAL PROVISIONS.] Minnesota Statutes 
1990, sections 121.933, subdivision 2; 122.23, subdivision 17; 
123.932, subdivision 4; 124A.02, subdivision 19; 124C.21; 
275.125, subdivisions 1, 4a, and 8d; 354.094, subdivisions 1a 
and 1b, are repealed. 
    Subd. 2.  [MECC REPEAL.] Minnesota Statutes 1990, sections 
119.01; 119.02; 119.03; 119.04, subdivisions 1, 2, and 3; 
119.05; 119.06; 119.07; 119.08; and 119.09, are repealed. 
    The repeal of the sections in this subdivision shall not be 
construed to mean that the commissioner of finance, on behalf of 
the state of Minnesota, does not have the right to seek any 
legal remedy to enforce the rights granted in any agreements 
entered into according to the sections repealed. 
    Sec. 39.  [EFFECTIVE DATE.] 
    Sections 9, 10, 11, and 35 are effective the day following 
final enactment. 
    Presented to the governor May 17, 1991 
    Signed by the governor May 21, 1991, 5:15 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes