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1993 Minnesota Session Laws

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

  
    Laws of Minnesota 1993 

                        CHAPTER 224-H.F.No. 350 
           An act relating to education; prekindergarten through 
          grade 12; providing for general education revenue; 
          transportation; special programs; community programs; 
          facilities; organization and cooperation; commitment 
          to excellence; other education programs; miscellaneous 
          provisions; libraries; state agencies; and realignment 
          of responsibilities; mandate repeals; conforming 
          references to repealed law; appropriating money; 
          amending Minnesota Statutes 1992, sections 3.873, 
          subdivisions 4, 5, 6, 7, and 9; 6.65; 89.35, 
          subdivision 2; 120.06, subdivision 3; 120.062, 
          subdivisions 5 and 9; 120.0621; 120.064, subdivisions 
          1, 3, 4, 5, 8, 9, 11, 16, 18, 21, and by adding a 
          subdivision; 120.0751; 120.101, subdivisions 5 and 5b; 
          120.102, subdivision 1; 120.17, subdivisions 2, 3, 7a, 
          11a, 11b, 12, 14, 15, and by adding subdivisions; 
          120.73, subdivision 1; 120.75; 121.11, subdivisions 5, 
          7, 12, and by adding subdivisions; 121.14; 121.15, 
          subdivision 4; 121.16, subdivision 1, and by adding a 
          subdivision; 121.201, subdivision 1; 121.585, 
          subdivision 2; 121.612, subdivisions 2 and 4; 121.831; 
          121.88, subdivisions 1 and 7; 121.882, subdivision 2b; 
          121.904, subdivisions 4a and 14; 121.906; 121.908, 
          subdivisions 1, 2, and 6; 121.912, subdivision 6, and 
          by adding a subdivision; 121.9121, subdivisions 1, 2, 
          and 4; 121.931, subdivision 5; 121.932, subdivision 3; 
          121.935, subdivisions 2 and 5; 121.936, subdivisions 4 
          and 4a; 122.22, by adding a subdivision; 122.23, 
          subdivision 18, and by adding a subdivision; 122.241, 
          subdivision 3; 122.242, subdivision 9; 122.243, 
          subdivisions 1 and 2; 122.247, subdivision 3; 122.895, 
          subdivision 2, and by adding subdivisions; 123.33, by 
          adding a subdivision; 123.34, subdivisions 9 and 10; 
          123.35, subdivisions 1 and 17; 123.351, subdivisions 
          6, 8, and 9; 123.3513; 123.3514, subdivisions 5, 6, 
          6b, 6c, and 8; 123.36, by adding a subdivision; 
          123.39, by adding subdivisions; 123.58, subdivisions 
          6, 7, 8, and 9; 123.702, subdivisions 1, 1a, 1b, 3, 4, 
          and 5; 123.7045; 123.71, subdivision 1; 123.80, 
          subdivision 1; 123.932, subdivision 7; 123.935, 
          subdivision 7; 123.947; 123.951; 124.09; 124.10, 
          subdivision 1; 124.14, subdivisions 1 and 4; 124.155, 
          subdivision 2; 124.17, subdivisions 1, 2c, and by 
          adding a subdivision; 124.19, subdivisions 1, 4, and 
          5; 124.195, subdivisions 8, 9, and 10; 124.2131, 
          subdivision 1; 124.223, subdivision 3; 124.225, 
          subdivisions 1, 3a, 7b, 7d, 7e, and 10; 124.226, 
          subdivisions 3, 9, and by adding a subdivision; 
          124.243, subdivisions 1, 2, 2a, 6, 8, and by adding a 
          subdivision; 124.244, subdivision 1; 124.245, 
          subdivision 6; 124.248, subdivision 4; 124.26, 
          subdivisions 1c and 2; 124.2601, subdivisions 4 and 6; 
          124.2615, subdivisions 2 and 3; 124.2711, subdivisions 
          1, 2, 2a, and by adding a subdivision; 124.2713, 
          subdivisions 2, 5, 6, and by adding subdivisions; 
          124.2714; 124.2716; 124.2725, subdivisions 1, 2, 4, 5, 
          6, 9, 10, and 13; 124.2727; 124.273, subdivision 1b, 
          and by adding a subdivision; 124.276, subdivision 3; 
          124.32, subdivisions 1b, 1d, and by adding 
          subdivisions; 124.321, subdivisions 1 and 2; 124.322, 
          subdivisions 2, 3, 4, and by adding a subdivision; 
          124.37; 124.38, by adding a subdivision; 124.431, 
          subdivisions 1, 1a, 2, and 14; 124.48, subdivisions 1 
          and 3; 124.494, subdivisions 1, 2, and by adding a 
          subdivision; 124.573, subdivision 2b; 124.574, 
          subdivision 2b, and by adding subdivisions; 124.625; 
          124.73, subdivision 1; 124.83, subdivisions 1, 2, 4, 
          6, and by adding a subdivision; 124.85, subdivisions 
          1, 4, and 5; 124.91, subdivisions 3 and 5; 124.912, 
          subdivisions 2, 3, and by adding a subdivision; 
          124.914, by adding a subdivision; 124.916, 
          subdivisions 2 and 3; 124.95, subdivisions 1, 2, 2a, 
          and 3; 124.961; 124A.029, subdivision 4; 124A.03, 
          subdivisions 1c, 1f, 1g, and by adding a subdivision; 
          124A.036, subdivision 5; 124A.04, subdivision 2; 
          124A.22, subdivisions 2, 4, 5, 6, 8, and 9; 124A.23, 
          subdivisions 1 and 5; 124A.24; 124A.26, subdivision 1, 
          and by adding a subdivision; 124A.27, subdivision 2; 
          124A.291; 124A.70; 124C.08, subdivisions 1 and 2; 
          124C.09; 125.032, subdivision 2; 125.05, subdivision 
          1a; 125.12, subdivisions 3b and 4b; 125.138; 125.17, 
          subdivisions 2b and 3b; 125.185, subdivisions 4 and 6; 
          125.1885, subdivision 3; 125.189; 126.151, subdivision 
          2; 126.22, subdivisions 2, 3, 3a, 4, and 8; 126.239, 
          subdivision 3; 126.267; 126.52, subdivisions 8 and 9; 
          126.54, subdivisions 1 and 3; 126.56, subdivisions 4a 
          and 7; 126.665; 126.67, subdivision 8; 126.70; 
          126A.07, subdivision 1; 127.15; 127.20; 127.455; 
          127.46; 128A.024, subdivision 2; 128A.03, subdivision 
          2; 128B.10, subdivision 1; 128C.02, by adding a 
          subdivision; 134.31, subdivisions 1, 2, and 5; 134.32, 
          subdivision 8; 136C.04, subdivision 6; 144.29; 
          144.4165; 171.29, subdivision 2; 273.13, subdivision 
          23; 273.1398, subdivisions 1 and 2a; 275.065, 
          subdivision 6; 275.48; 298.28, subdivision 4; 471.88, 
          by adding a subdivision; 473F.02, by adding a 
          subdivision; 475.61, subdivision 3; and 609.685, 
          subdivision 3, and by adding a subdivision; proposing 
          coding for new law in Minnesota Statutes, chapters 4; 
          121; 124; 124A; 124C; 125; 126; and 128A; repealing 
          Minnesota Statutes 1992, sections 120.095; 120.101, 
          subdivisions 5a and 5b; 120.75, subdivision 2; 120.80, 
          subdivision 2; 121.11, subdivisions 6, 13, 15, and 16; 
          121.165; 121.19; 121.49; 121.585, subdivision 3; 
          121.609; 121.883; 121.90; 121.901; 121.902; 121.904, 
          subdivisions 5, 6, 8, 9, 10, 11a, and 11c; 121.908, 
          subdivision 4; 121.9121, subdivisions 3 and 5; 121.93, 
          subdivision 5; 121.931, subdivisions 6, 6a, 7, and 8; 
          121.934; 121.936, subdivisions 1, 2, and 3; 121.937; 
          121.94; 121.941; 121.942; 121.943; 123.33, 
          subdivisions 10, 14, 15, and 16; 123.35, subdivision 
          14; 123.352; 123.36, subdivisions 2, 3, 4, 4a, 6, 8, 
          9, and 12; 123.40, subdivisions 4 and 6; 123.61; 
          123.67; 123.709; 123.744; 124.19, subdivisions 1, 1b, 
          6, and 7; 124.195, subdivision 13; 124.2721; 124.2725, 
          subdivision 8; 124.32, subdivision 5; 124.331; 
          124.332; 124.333; 124.573, subdivisions 2c and 2d; 
          124.575, subdivisions 2 and 4; 124.615; 124.62; 
          124.64; 124.645; 124.67; 124.68; 124.69; 124.79; 
          124.912, subdivisions 4 and 5; 124A.27, subdivision 1; 
          125.12, subdivisions 3a and 4a; 125.17, subdivisions 
          2a and 3a; 125.185, subdivision 4a; 126.02; 126.025; 
          126.031; 126.06; 126.08; 126.09; 126.111; 126.112; 
          126.12, subdivision 2; 126.20, subdivision 4; 126.22, 
          subdivision 2a; 126.24; 126.268; 126.662; 126.663; 
          126.664; 126.665; 126.666; 126.67; 126.68; 126A.01; 
          126A.02; 126A.03; 126A.04; 126A.05; 126A.07; 126A.08; 
          126A.09; 126A.10; 126A.11; 126A.12; 128B.03, 
          subdivision 2; and 145.926. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                        GENERAL EDUCATION REVENUE
    Section 1.  Minnesota Statutes 1992, section 121.904, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to sections 124.2721, subdivision 3; 
124.575, subdivision 3; and 124.914, subdivision 1; and Laws 
1976, chapter 20, section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the May, June, and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, which are for the fiscal year 
payable in that fiscal year plus an amount equal to the levy 
recognized as revenue in June of the prior year plus 50.0 
percent of the amount of the levy certified in the prior 
calendar year according to section 124A.03, subdivision 2, plus 
or minus auditor's adjustments, not including levy portions that 
are assumed by the state; or 
    (3) 50.0 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 
reserved fund balance accounts for unemployment insurance and 
bus purchases; 
    (ii) statutory operating debt pursuant to section 124.914, 
subdivision 1, and Laws 1976, chapter 20, section 4; and 
    (iii) retirement and severance pay pursuant to sections 
122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
1975, chapter 261, section 4; and 
    (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, amounts 
levied for down payments under section 124.82, subdivision 3, 
and amounts levied pursuant to section 136C.411; and 
    (v) amounts levied under section 124.755.  
    (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
    (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable. 
    Sec. 2.  Minnesota Statutes 1992, section 124.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
pupil in average daily membership shall be counted according to 
this subdivision.  
    (a) A prekindergarten pupil with a disability who is 
enrolled for the entire fiscal year in a program approved by the 
commissioner and has an individual education plan that requires 
up to 437 hours of assessment and education services in the 
fiscal year is counted as one-half of a pupil unit.  If the plan 
requires more than 437 hours of assessment and education 
services, the pupil is counted as the ratio of the number of 
hours of assessment and education service to 875, but not more 
than one. 
    (b) A prekindergarten pupil with a disability who is 
enrolled for less than the entire fiscal year in a program 
approved by the commissioner is counted as the greater of: 
    (1) one-half times the ratio of the number of instructional 
days from the date the pupil is enrolled to the date the pupil 
withdraws to the number of instructional days in the school 
year; or 
    (2) the ratio of the number of hours of assessment and 
education service required in the fiscal year by the pupil's 
individual education program plan to 875, but not more than one. 
    (c) A prekindergarten pupil who is assessed but determined 
not to be handicapped is counted as the ratio of the number of 
hours of assessment service to 875.  
    (d) A kindergarten pupil with a disability who is enrolled 
in a program approved by the commissioner is counted as the 
ratio of the number of hours of assessment and education 
services required in the fiscal year by the pupil's individual 
education program plan to 875, but not more than one. 
    (e) A kindergarten pupil who is not included in paragraph 
(d) is counted as one-half of a pupil unit. 
    (f) A pupil who is in any of grades 1 to 6 is counted as 
one pupil unit 1.03 pupil unit for fiscal year 1994 and 1.06 
pupil unit for fiscal year 1995 and thereafter. 
    (g) A pupil who is in any of grades 7 to 12 is counted as 
1.3 pupil units.  
    Sec. 3.  Minnesota Statutes 1992, section 124.19, 
subdivision 4, is amended to read: 
    Subd. 4.  In a school where the number of instructional 
hours in the school day is greater than the number of 
instructional hours prescribed in the rules of the state board 
for the school day, the excess number of instructional hours for 
those days may be included in calculating the required number of 
days school is in session for purposes of fulfilling the 
requirements of subdivision 1, provided that the school is in 
session for not less than 160 days during the school year, and 
provided that no instructional hours are included from half-day 
sessions or any school day which has less instructional hours 
than the number of instructional hours prescribed in the rules 
of the state board unless the average number of instructional 
hours for all school days in the school year equals or exceeds 
the number of instructional hours prescribed in the rules of the 
state board.  The district shall notify the department of each 
adjustment.  
    Sec. 4.  Minnesota Statutes 1992, section 124.2131, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ADJUSTED GROSS TAX CAPACITY; ADJUSTED NET 
TAX CAPACITY.] (a)  [COMPUTATION.] The department of revenue 
shall annually conduct an assessment/sales ratio study of the 
taxable property in each school district in accordance with the 
procedures in paragraphs (b) and (c).  Based upon the results of 
this assessment/sales ratio study, the department of revenue 
shall determine an aggregate equalized gross tax capacity and an 
aggregate equalized net tax capacity for the various classes of 
taxable property in each school district, which tax capacity 
shall be designated as the adjusted gross tax capacity and the 
adjusted net tax capacity, respectively.  The adjusted net tax 
capacities shall be determined using the net tax capacity 
percentages in effect for the assessment year following the 
assessment year of the study.  The department of revenue shall 
make whatever estimates are necessary to account for changes in 
the classification system.  The department of revenue may incur 
the expense necessary to make the determinations.  The 
commissioner of revenue may reimburse any county or governmental 
official for requested services performed in ascertaining the 
adjusted gross tax capacity and the adjusted net tax capacity.  
On or before March 15 annually, the department of revenue shall 
file with the chair of the tax committee of the house of 
representatives and the chair of the committee on taxes and tax 
laws of the senate a report of adjusted gross tax capacities and 
adjusted net tax capacities.  On or before April 15 June 15 
annually, the department of revenue shall file its final report 
on the adjusted gross tax capacities and adjusted net tax 
capacities established by the previous year's 
assessment assessments and the current year's net tax capacity 
percentages with the commissioner of education and each county 
auditor for those school districts for which the auditor has the 
responsibility for determination of local tax rates.  A copy of 
the report so filed shall be mailed to the clerk of each 
district involved and to the county assessor or supervisor of 
assessments of the county or counties in which each district is 
located. 
     (b)  [METHODOLOGY.] In making its annual assessment/sales 
ratio studies, the department of revenue shall use a methodology 
consistent with the most recent Standard on Assessment Ratio 
Studies published by the assessment standards committee of the 
International Association of Assessing Officers.  The 
commissioner of revenue shall supplement this general 
methodology with specific procedures necessary for execution of 
the study in accordance with other Minnesota laws impacting the 
assessment/sales ratio study.  The commissioner shall document 
these specific procedures in writing and shall publish the 
procedures in the State Register, but these procedures will not 
be considered "rules" pursuant to the Minnesota administrative 
procedure act.  For purposes of this section, section 270.12, 
subdivision 2, clause (8), and section 278.05, subdivision 4, 
the commissioner of revenue shall exclude from the 
assessment/sales ratio study the sale of any nonagricultural 
property which does not contain an improvement, if (1) the 
statutory basis on which the property's taxable value as most 
recently assessed is less than market value as defined in 
section 273.11, or (2) the property has undergone significant 
physical change or a change of use since the most recent 
assessment.  
    (c)  [AGRICULTURAL LANDS.] For purposes of determining 
the adjusted gross tax capacity and adjusted net tax capacity of 
agricultural lands for the calculation of adjusted gross tax 
capacities and adjusted net tax capacities, the market value of 
agricultural lands shall be the price for which the property 
would sell in an arms length transaction. 
    (d)  [FORCED SALES.] The commissioner may include forced 
sales in the assessment/sales ratio studies if it is determined 
by the commissioner that these forced sales indicate true market 
value. 
    (e)  [STIPULATED VALUES.] The estimated market value to be 
used in calculating sales ratios shall be the value established 
by the assessor before any stipulations resulting from appeals 
by property owners. 
    (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios 
shall be calculated for commercial property and for industrial 
property.  These two classes shall be combined only in 
jurisdictions in which there is not an adequate sample of sales 
in each class. 
    Sec. 5.  Minnesota Statutes 1992, section 124.73, 
subdivision 1, is amended to read: 
    Subdivision 1.  The board of any school district may borrow 
money upon negotiable tax anticipation certificates of 
indebtedness, in the manner and subject to the limitations set 
forth in sections 124.71 to 124.76, for the purpose of 
anticipating general taxes theretofore levied by the district 
for school purposes, but the aggregate of such borrowing under 
this subdivision shall never exceed 50 75 percent of such taxes 
which are due and payable in the calendar year, and as to which 
taxes no penalty for nonpayment or delinquency has attached.  In 
determining the amount of taxes due and payable in the calendar 
year, any amounts paid by the state to replace such taxes, 
whether paid in that calendar year or not, shall be included. 
    Sec. 6.  [124.755] [STATE PAYMENT OF DEBT OBLIGATION UPON 
POTENTIAL DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the term "debt obligation" means either a tax or aid 
anticipation certificate of indebtedness or a general obligation 
bond.  
    Subd. 2.  [NOTIFICATIONS; PAYMENT; APPROPRIATION.] (a) If a 
school district believes that it may be unable to make a 
principal or interest payment on any outstanding debt obligation 
on the date that payment is due, it must notify the commissioner 
of education of that fact as soon as possible, but not less than 
15 working days before the date that principal or interest 
payment is due.  The notice shall include the name of the school 
district, an identification of the debt obligation issue in 
question, the date the payment is due, the amount of principal 
and interest due on the payment date, the amount of principal or 
interest that the school district will be unable to repay on 
that date, the paying agent for the debt obligation, the wire 
transfer instructions to transfer funds to that paying agent, 
and an indication as to whether a payment is being requested by 
the district under this section.  If a paying agent becomes 
aware of a potential default, it shall inform the commissioner 
of education of that fact.  After receipt of a notice which 
requests a payment under this section, after consultation with 
the school district and the paying agent, and after verification 
of the accuracy of the information provided, the commissioner of 
education shall notify the commissioner of finance of the 
potential default.  
    (b) Except as provided in subdivision 9, upon receipt of 
this notice from the commissioner of education, which must 
include a final figure as to the amount due that the school 
district will be unable to repay on the date due, the 
commissioner of finance shall issue a warrant and authorize the 
commissioner of education to pay to the paying agent for the 
debt obligation the specified amount on or before the date due. 
The amounts needed for the purposes of this subdivision are 
annually appropriated to the department of education from the 
state general fund. 
    (c) The departments of education and finance shall jointly 
develop detailed procedures for school districts to notify the 
state that they have obligated themselves to be bound by the 
provisions of this section, procedures for school districts and 
paying agents to notify the state of potential defaults and to 
request state payment under this section, and procedures for the 
state to expedite payments to prevent defaults.  The procedures 
are not subject to chapter 14. 
    Subd. 3.  [SCHOOL DISTRICT BOUND; INTEREST RATE ON STATE 
PAID AMOUNT.] If, at the request of a school district, the state 
has paid part or all of the principal or interest due on a 
school district's debt obligation on a specific date, the school 
district is bound by all provisions of this section and the 
amount paid shall bear taxable interest from the date paid until 
the date of repayment at the state treasurer's invested cash 
rate as it is certified by the commissioner of finance.  
Interest shall only accrue on the amounts paid and outstanding 
less the reduction in aid under subdivision 4 and other payments 
received from the district. 
    Subd. 4.  [PLEDGE OF DISTRICT'S FULL FAITH AND CREDIT.] If, 
at the request of a school district, the state has paid part or 
all of the principal or interest due on a school district's debt 
obligation on a specific date, the pledge of the full faith and 
credit and unlimited taxing powers of the school district to 
repay the principal and interest due on those debt obligations 
shall also, without an election or the requirement of a further 
authorization, become a pledge of the full faith and credit and 
unlimited taxing powers of the school district to repay to the 
state the amount paid, with interest.  Amounts paid by the state 
shall be repaid in the order in which the state payments were 
made. 
    Subd. 5.  [AID REDUCTION FOR REPAYMENT.] Except as provided 
in this subdivision, the state shall reduce the state aid 
payable to the school district under chapters 124, 124A, and 
273, according to the schedule in section 124.155, subdivision 
2, by the amount paid by the state under this section on behalf 
of the school district, plus the interest due on it, and the 
amount reduced shall revert from the appropriate account to the 
state general fund.  Payments from the school endowment fund or 
any federal aid payments shall not be reduced.  If, after review 
of the financial situation of the school district, the 
commissioner of education advises the commissioner of finance 
that a total reduction of the aids would cause an undue hardship 
on or an undue disruption of the educational program of the 
school district, the commissioner of education, with the 
approval of the commissioner of finance, may establish a 
different schedule for reduction of those aids to repay the 
state.  The amount of aids to be reduced are decreased by any 
amounts repaid to the state by the school district from other 
revenue sources. 
    Subd. 6.  [TAX LEVY FOR REPAYMENT.] (a) With the approval 
of the commissioner of education, a school district may levy in 
the year the state makes a payment under this section an amount 
up to the amount necessary to provide funds for the repayment of 
the amount paid by the state plus interest through the date of 
estimated repayment by the school district.  The proceeds of 
this levy may be used only for this purpose unless they are in 
excess of the amount actually due, in which case the excess 
shall be used to repay other state payments made under this 
section or shall be deposited in the debt redemption fund of the 
school district.  This levy shall be an increase in the levy 
limits of the school district for purposes of section 275.065, 
subdivision 6.  The amount of aids to be reduced to repay the 
state shall be decreased by the amount levied.  This levy by the 
school district is not eligible for debt service equalization 
under section 124.95. 
    (b) If the state is not repaid in full for a payment made 
under this section by November 30 of the calendar year following 
the year in which the state makes the payment, the commissioner 
of education must require the school district to certify a 
property tax levy in an amount up to the amount necessary to 
provide funds for repayment of the amount paid by the state plus 
interest through the date of estimated repayment by the school 
district.  To prevent undue hardship, the commissioner may allow 
the district to certify the levy over a five-year period.  The 
proceeds of the levy may be used only for this purpose unless 
they are in excess of the amount actually due, in which case the 
excess shall be used to repay other state payments made under 
this section or shall be deposited in the debt redemption fund 
of the school district.  This levy shall be an increase in the 
levy limits of the school district for purposes of section 
275.065, subdivision 6.  If the commissioner orders the district 
to levy, the amount of aids reduced to repay the state shall be 
decreased by the amount levied.  This levy by the school 
district is not eligible for debt service equalization under 
section 124.95 or any successor provision.  A levy under this 
subdivision must be explained as a specific increase at the 
meeting required under section 275.065, subdivision 6.  
    Subd. 7.  [ELECTION AS TO MANDATORY APPLICATION.] A school 
district may covenant and obligate itself, prior to the issuance 
of an issue of debt obligations, to notify the commissioner of 
education of a potential default and to use the provisions of 
this section to guarantee payment of the principal and interest 
on those debt obligations when due.  If the school district 
obligates itself to be bound by this section, it shall covenant 
in the resolution that authorizes the issuance of the debt 
obligations to deposit with the paying agent three business days 
prior to the date on which a payment is due an amount sufficient 
to make that payment or to notify the commissioner of education 
under subdivision 1 that it will be unable to make all or a 
portion of that payment.  A school district that has obligated 
itself shall include a provision in its agreement with the 
paying agent for that issue that requires the paying agent to 
inform the commissioner of education if it becomes aware of a 
potential default in the payment of principal or interest on 
that issue or if, on the day two business days prior to the date 
a payment is due on that issue, there are insufficient funds to 
make the payment on deposit with the paying agent.  If a school 
district either covenants to be bound by this section or accepts 
state payments under this section to prevent a default of a 
particular issue of debt obligations, the provisions of this 
section shall be binding as to that issue as long as any debt 
obligation of that issue remain outstanding.  If the provisions 
of this section are or become binding for more than one issue of 
debt obligations and a district is unable to make payments on 
one or more of those issues, it shall continue to make payments 
on the remaining issues.  
    Subd. 8.  [MANDATORY PLAN; TECHNICAL ASSISTANCE.] If the 
state makes payments on behalf of a district under this section 
or the district defaults in the payment of principal or interest 
on an outstanding debt obligation, it shall submit a plan to the 
commissioner of education for approval specifying the measures 
it intends to implement to resolve the issues which led to its 
inability to make the payment and to prevent further defaults.  
The department shall provide technical assistance to the school 
district in preparing its plan.  If the commissioner determines 
that a school district's plan is not adequate, the commissioner 
shall notify the school district that the plan has been 
disapproved, the reasons for the disapproval, and that the state 
shall not make future payments under this section for debt 
obligations issued after the date specified in that notice until 
its plan is approved.  The commissioner may also notify the 
school district that until its plan is approved, other aids due 
the district will be withheld after a date specified in the 
notice. 
    Subd. 9.  [STATE BOND RATING.] If the commissioner of 
finance determines that the credit rating of the state would be 
adversely affected thereby, the commissioner shall not issue 
warrants under subdivision 2 for the payment of principal or 
interest on any debt obligations for which a school district did 
not, prior to their issuance, obligate itself to be bound by the 
provisions of this section. 
    Sec. 7.  Minnesota Statutes 1992, section 124A.03, 
subdivision 1c, is amended to read: 
    Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] (a) 
Notwithstanding subdivision 1b, a district's referendum 
allowance must not exceed the greater of:  
    (1) the district's referendum allowance for fiscal year 
1992; 1994; or 
    (2) the district's referendum allowance for fiscal year 
1993; 
    (3) 30 25 percent of the formula allowance for the fiscal 
year for which it is attributable; or 
    (4) for a district that held a successful referendum levy 
election in calendar year 1991, 35 percent of the formula 
allowance for the fiscal year to which it is attributable 1995 
and later.  
    (b) The allowance calculated in paragraph (a) must be 
reduced by the amount of the referendum allowance reduction 
computed in subdivision 3b. 
    Sec. 8.  Minnesota Statutes 1992, section 124A.03, 
subdivision 1f, is amended to read: 
    Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
referendum equalization revenue equals ten percent of the 
formula allowance $315 times the district's actual pupil units 
for that year. 
    Referendum equalization revenue must not exceed a 
district's referendum revenue allowance times the district's 
actual pupil units total referendum revenue for that year. 
    Sec. 9.  Minnesota Statutes 1992, section 124A.03, 
subdivision 1g, is amended to read: 
    Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] A district's 
referendum equalization levy equals the district's referendum 
equalization revenue times the lesser of one or the ratio of the 
district's adjusted net tax capacity per actual pupil unit to 50 
100 percent of the equalizing factor as defined in section 
124A.02, subdivision 8. 
    Sec. 10.  Minnesota Statutes 1992, section 124A.03, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [REFERENDUM ALLOWANCE REDUCTION.] A district's 
referendum allowance under subdivision 1c is reduced by the 
amounts calculated in paragraphs (a), (b), and (c). 
    (a) The referendum allowance reduction equals the amount by 
which a district's supplemental revenue reduction exceeds the 
district's supplemental revenue allowance for fiscal year 1993. 
    (b) Notwithstanding paragraph (a), if a district's initial 
referendum allowance is less than ten percent of the formula 
allowance for that year, the reduction equals the lesser of (1) 
an amount equal to $100, or (2) the amount calculated in 
paragraph (a). 
    (c) Notwithstanding paragraph (a) or (b), a school 
district's referendum allowance reduction equals (1) an amount 
equal to $100, times (2) one minus the ratio of 20 percent of 
the initial referendum allowance limit minus the district's 
initial referendum allowance limit to 20 percent of the formula 
allowance for that year if: 
    (i) the district's adjusted net tax capacity for assessment 
year 1992 per actual pupil unit for fiscal year 1995 is less 
than $3,000; 
    (ii) the district's net unappropriated operating fund 
balance as of June 30, 1993, divided by the actual pupil units 
for fiscal year 1995 is less than $200; 
    (iii) the district's supplemental revenue allowance for 
fiscal year 1993 is equal to zero; and 
    (iv) the district's initial referendum revenue authority 
for the current year divided by the district's net tax capacity 
for assessment year 1992 is greater than ten percent. 
    Sec. 11.  Minnesota Statutes 1992, section 124A.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [1993 AND LATER.] The training and experience 
index for fiscal year 1993 and later fiscal years must be 
constructed in the following manner:  
    (a) The department shall construct a matrix that classifies 
teachers by the extent of training received in accredited 
institutions of higher education and by the years of experience 
that districts take into account in determining teacher salaries.
    (b) The average salary for each cell of the matrix must be 
computed as follows using data from the second year of the 
previous biennium:  
    (1) For each school district, multiply the salary paid to 
full-time equivalent teachers with that combination of training 
and experience according to the district's teacher salary 
schedule by the number of actual pupil units in that district.  
    (2) Add the amounts computed in clause (1) for all 
districts in the state and divide the resulting sum by the total 
number of actual pupil units in all districts in the state that 
employ teachers.  
    (c) For each cell in the matrix, compute the ratio of the 
average salary in that cell to the average salary for all 
teachers in the state.  Cells of the matrix in lanes beyond the 
master's degree plus 30 credits lane must receive the same ratio 
as the cells in the master's degree plus 30 credits lane. 
    (d) The index for each district that employs teachers 
equals the sum of the ratios for each teacher in that district 
divided by the number of teachers in that district.  The index 
for a district that employs no teachers is zero. 
    Sec. 12.  Minnesota Statutes 1992, section 124A.22, 
subdivision 2, is amended to read: 
    Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
district equals the formula allowance times the actual pupil 
units for the school year.  The formula allowance for 1992 and 
subsequent fiscal years 1993 and 1994 is $3,050.  The formula 
allowance for fiscal year 1995 and subsequent fiscal years is 
$3,150.  
    Sec. 13.  Minnesota Statutes 1992, section 124A.22, 
subdivision 4, is amended to read: 
    Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 
year 1992, The previous formula training and experience revenue 
for each district equals the greater of zero or the result of 
the following computation:  
    (1) subtract 1.6 from the training and experience index; 
    (2) multiply the result in clause (1) by the product of 
$700 times the actual pupil units for the school year. 
    (b) For 1993 and later fiscal years, The maximum training 
and experience revenue for each district equals the greater of 
zero or the result of the following computation:  
    (1) subtract .8 from the training and experience index; 
    (2) multiply the result in clause (1) by the product of 
$575 $660 times the actual pupil units for the school year.  
    (c) For 1993 and later fiscal years, the previous formula 
training and experience revenue for each district equals the 
amount of training and experience revenue computed for that 
district according to the formula used to compute training and 
experience revenue for fiscal year 1992.  
    (d) For fiscal year 1993, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus one-fourth of the 
difference between the district's maximum training and 
experience revenue and the district's previous formula training 
and experience revenue.  
    (e) For fiscal year 1994, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus one-half of the difference 
between the district's maximum training and experience revenue 
and the district's previous formula training and experience 
revenue.  
    (f) (d) For fiscal year 1995, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus three-fourths of the 
difference between the district's maximum training and 
experience revenue and the district's previous formula training 
and experience revenue. 
    (g) (e) For fiscal year 1996 and thereafter, the training 
and experience revenue for each district equals the district's 
maximum training and experience revenue.  
    Sec. 14.  Minnesota Statutes 1992, section 124A.22, 
subdivision 5, is amended to read: 
    Subd. 5.  [DEFINITIONS.] The definitions in this 
subdivision apply only to subdivisions 6 and 6a.  
    (a) "High school" means a secondary school that has pupils 
enrolled in at least the 10th, 11th, and 12th grades.  If there 
is no secondary school in the district that has pupils enrolled 
in at least the 10th, 11th, and 12th grades, the commissioner 
shall designate one school in the district as a high school for 
the purposes of this section. 
    (b) "Secondary average daily membership" means, for a 
district that has only one high school, the average daily 
membership of resident pupils in grades 7 through 12.  For a 
district that has more than one high school, "secondary average 
daily membership" for each high school means the product of the 
average daily membership of resident pupils in grades 7 through 
12 in the high school, times the ratio of six to the number of 
grades in the high school. 
    (c) "Attendance area" means the total surface area of the 
district, in square miles, divided by the number of high schools 
in the district.  For a district that does not operate a high 
school and is less than 19 miles from the nearest operating high 
school, the attendance area equals zero. 
    (d) "Isolation index" for a high school means the square 
root of one-half the attendance area plus the distance in miles, 
according to the usually traveled routes, between the high 
school and the nearest high school.  
    (e) "Qualifying high school" means a high school that has 
an isolation index greater than 23 and that has secondary 
average daily membership of less than 400.  
    (f) "Qualifying elementary school" means an elementary 
school that is located 19 miles or more from the nearest 
elementary school or from the nearest elementary school within 
the district and, in either case, has an elementary average 
daily membership of an average of 20 or fewer per grade. 
    (g) "Elementary average daily membership" means, for a 
district that has only one elementary school, the average daily 
membership of resident pupils in kindergarten through grade 6.  
For a district that has more than one elementary school, 
"average daily membership" for each school means the average 
daily membership of kindergarten through grade 6 multiplied by 
the ratio of seven to the number of grades in the elementary 
school. 
    Sec. 15.  Minnesota Statutes 1992, section 124A.22, 
subdivision 6, is amended to read: 
    Subd. 6.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
secondary sparsity revenue for a school year equals the sum of 
the results of the following calculation for each qualifying 
high school in the district: 
    (1) the formula allowance for the school year, multiplied 
by 
    (2) the secondary average daily membership of the high 
school, multiplied by 
    (3) the quotient obtained by dividing 400 minus the 
secondary average daily membership by 400 plus the secondary 
daily membership, multiplied by 
    (4) the lesser of one or the quotient obtained by dividing 
the isolation index minus 23 by ten. 
    (b) A newly formed school district that is the result of 
districts combining under the cooperation and combination 
program or consolidating under section 122.23 shall receive 
secondary sparsity revenue equal to the greater of:  (1) the 
amount calculated under paragraph (a) for the combined district; 
or (2) the sum of the amounts of secondary sparsity revenue the 
former school districts had in the year prior to consolidation, 
increased for any subsequent changes in the secondary sparsity 
formula. 
    Sec. 16.  Minnesota Statutes 1992, section 124A.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
supplemental revenue allowance for fiscal year 1992 1994 and 
later fiscal years equals the product of the district's 
supplemental revenue for fiscal year 1991 times the ratio of: 
    (1) 1993 divided by the district's 1991-1992 1992-1993 
actual pupil units; to 
    (2) the district's 1990-1991 actual pupil units adjusted 
for the change in secondary pupil unit weighting from 1.35 to 
1.3 made in section 124.17, subdivision 1. 
    (b) If a district's minimum allowance exceeds the sum of 
its basic revenue, previous formula compensatory education 
revenue, previous formula training and experience revenue, 
secondary sparsity revenue, and elementary sparsity revenue per 
actual pupil unit for a fiscal year, and the excess is less than 
$250 per actual pupil unit, the district shall receive 
supplemental revenue equal to the amount of the excess times the 
actual pupil units for the school year.  If the amount of the 
excess is more than $250 per actual pupil unit, the district 
shall receive the greater of (1) $250 times the actual pupil 
units; or (2) the amount of the excess times the actual pupil 
units less the sum of (i) the difference between the district's 
training and experience revenue and its previous formula 
training and experience revenue; and (ii) the difference between 
the district's compensatory education revenue and its previous 
formula compensatory education revenue. A district's 
supplemental revenue allowance is reduced for fiscal year 1995 
and later according to subdivision 9. 
    (c) A district's supplemental revenue equals the 
supplemental revenue allowance, if any, times its actual pupil 
units for that year.  
    Sec. 17.  Minnesota Statutes 1992, section 124A.22, 
subdivision 9, is amended to read: 
    Subd. 9.  [DEFINITION FOR SUPPLEMENTAL REVENUE 
REDUCTION.] (a) The definition in this subdivision applies only 
to subdivision 8. 
    (b) "Minimum allowance" for a district means: 
    (1) the district's general education revenue for fiscal 
year 1992, according to subdivision 1; divided by 
    (2) the district's 1991-1992 actual pupil units.  A 
district's supplemental revenue allowance is reduced by the sum 
of: 
    (1) the sum of one-fourth of the difference of:  
    (i) the sum of the district's training and experience 
revenue and compensatory revenue per actual pupil unit for that 
fiscal year, and 
    (ii) the sum of district's training and experience revenue 
and compensatory revenue per actual pupil unit for fiscal year 
1994; and 
    (2) the difference between the formula allowance for the 
current fiscal year and $3,050.  
    A district's supplemental revenue allowance may not be less 
than zero. 
    Sec. 18.  [124A.225] [LEARNING AND DEVELOPMENT REVENUE 
AMOUNT AND USE.] 
    Subdivision 1.  [REVENUE.] Of a district's general 
education revenue an amount equal to the sum of the number of 
elementary pupil units defined in section 124.17, subdivision 1, 
clause (f) and kindergarten pupil units as defined in section 
124.17, subdivision 1, clause (e), times .03 for fiscal year 
1994 and .06 for fiscal year 1995 and thereafter times the 
formula allowance must be reserved according to this section.  A 
district that is not subject to a supplemental revenue reduction 
under section 17 or a referendum revenue reduction under section 
10 must reserve an additional amount of revenue equal to $100 
times the district's actual pupil units times the ratio of the 
district's elementary average daily membership to the district's 
average daily membership according to this section.  The revenue 
must be placed in a learning and development reserved account 
and may only be used according to this section.  The ratio for 
fiscal year 1995 is adjusted by adding an amount equal to the 
ratio of the difference between the formula allowance for fiscal 
year 1995 minus 3,150 to 10,000. 
    Subd. 2.  [INSTRUCTOR DEFINED.] Primary instructor means a 
public employee licensed by the board of teaching whose duties 
are full-time instruction, excluding a teacher for whom 
categorical aids are received pursuant to sections 124.273 and 
124.32.  Except as provided in section 125.230, subdivision 6, 
instructor does not include supervisory and support personnel, 
except school social workers as defined in section 125.03.  An 
instructor whose duties are less than full-time instruction must 
be included as an equivalent only for the number of hours of 
instruction in grades K through 6. 
    Subd. 3.  [INSTRUCTION CONTACT TIME.] Instruction may be 
provided by a primary instructor, by a team of instructors, or 
by teacher resident supervised by a primary instructor.  The 
district must maximize instructor to learner average 
instructional contact time. 
    Subd. 4.  [REVENUE USE.] Revenue shall be used to reduce 
and maintain the district's instructor to learner ratios in 
kindergarten through grade 6 to a level of 1 to 17 on average.  
The district must prioritize the use of the revenue to attain 
this level initially in kindergarten and grade 1 and then 
through the subsequent grades as revenue is available.  The 
revenue may be used to prepare and use an individualized 
learning plan for each learner.  A district must not increase 
the district wide instructor-learner ratios in other grades as a 
result of reducing instructor-learner ratios in kindergarten 
through grade 6.  Revenue may not be used to provide instructor 
preparation time or to provide the district's share of revenue 
required under section 124.311.  Revenue may be used to continue 
employment for nonlicensed staff employed in the district on the 
effective date of this act under Minnesota Statutes 1992, 
section 123.331, subdivision 2. 
    Subd. 5.  [ADDITIONAL REVENUE USE.] If the school board of 
a school district determines that the district has achieved and 
is maintaining the instructor-learner ratios specified in 
subdivision 4 and is using individualized learning plans, the 
school board may use the revenue to purchase material and 
services or provide staff development needed for reduced 
instructor-learner ratios.  If additional revenue remains, the 
district must use the revenue to improve program offerings, 
including programs provided through interactive television, 
throughout the district or other general education purposes. 
    Sec. 19.  Minnesota Statutes 1992, section 124A.23, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
commissioner shall establish the general education tax rate by 
July 1 of each year for levies payable in the following year.  
The general education tax capacity rate shall be a rate, rounded 
up to the nearest tenth of a percent, that, when applied to the 
adjusted net tax capacity for all districts, raises the amount 
specified in this subdivision.  The general education tax rate 
shall be the rate that raises $916,000,000 for fiscal year 1993 
and $969,800,000 for fiscal year 1994, $1,044,000,000 for fiscal 
year 1995 and later fiscal years.  The general education tax 
rate may not be changed due to changes or corrections made to a 
district's adjusted net tax capacity after the tax rate has been 
established.  
    Sec. 20.  Minnesota Statutes 1992, section 124A.23, 
subdivision 5, is amended to read: 
    Subd. 5.  [USES OF REVENUE.] Except as provided in section 
124A.225, general education revenue may be used during the 
regular school year and the summer for general and special 
school purposes. 
    Sec. 21.  Minnesota Statutes 1992, 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 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 
training and experience revenue and supplemental revenue, for 
the same school year, according to section 124A.22. 
    However, 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. 22.  Minnesota Statutes 1992, section 124A.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE REDUCTION.] A district's general 
education revenue for a school year shall be reduced if the 
estimated net unappropriated operating fund balance as of June 
30 in the prior school year exceeds $600 25 percent of the 
formula allowance for the current fiscal year times the fund 
balance pupil units in the prior year.  For purposes of this 
subdivision and section 124.243, subdivision 2, fund balance 
pupil units means the number of resident pupil units in average 
daily membership, including shared time pupils, according to 
section 124A.02, subdivision 20, plus 
    (1) pupils attending the district for which general 
education aid adjustments are made according to section 
124A.036, subdivision 5; minus 
    (2) the sum of the resident pupils attending other 
districts for which general education aid adjustments are made 
according to section 124A.036, subdivision 5, plus pupils for 
whom payment is made according to section 126.22, subdivision 8, 
or 126.23.  The amount of the reduction shall equal the lesser 
of: 
    (1) the amount of the excess, or 
    (2) $150 $250 times the actual pupil units for the school 
year. 
    The final adjustment payments made under section 124.195, 
subdivision 6, must be adjusted to reflect actual net operating 
fund balances as of June 30 of the prior school year. 
    Sec. 23.  Minnesota Statutes 1992, section 124A.26, is 
amended by adding a subdivision to read: 
    Subd. 4.  [ALLOCATION AMONG OPERATING FUNDS.] The revenue 
reduction required under this section must be allocated to the 
transportation fund and the community service fund in the 
following manner: 
    (1) each year, a school district shall calculate the ratio 
of the transportation net unappropriated operating fund balance 
and the community service net unappropriated operating fund 
balance to the total net unappropriated operating fund balance; 
    (2) multiply the ratios computed in clause (1) by the total 
fund balance reduction required under this section; 
    (3) the school district shall transfer the amounts, if any, 
calculated in clause (2) from the transportation and community 
service funds to the general fund. 
    Sec. 24.  [124A.698] [POLICY.] 
    Financing the education of our children is one of state 
government's most important functions.  In performing this 
function, the state seeks to provide sufficient funding while 
encouraging equity, accountability, and incentives toward 
quality improvement.  To help achieve these goals and to help 
control future spending growth, the state will fund core 
instruction and related support services, will facilitate 
improvement in the quality and delivery of programs and 
services, and will equalize revenues raised locally for 
discretionary purposes. 
    Sec. 25.  Minnesota Statutes 1992, section 124A.70, is 
amended to read: 
    124A.70 [BASIC CORE INSTRUCTIONAL AID.] 
    Subdivision 1.  [BASIC OUTCOMES.] Basic outcomes are 
defined as learner outcomes that must be achieved as a 
requirement for graduation, specified in rule by the state board 
of education.  Basic outcomes are those outcomes that have 
standards of achievement determined by the state board the basic 
knowledge and skills determined necessary by the board for 
graduates to become productive employees, parents, and 
citizens.  The board shall review and amend, if necessary, its 
graduation rule every two years. 
    Subd. 2.  [AID AMOUNT.] Basic Core instructional aid is 
equal to the aid allowance cost determined necessary by the 
legislature to achieve the basic outcomes for each student times 
the number of actual pupil units for the school year plus 
support services aid for the district as determined under 
section 124A.711.  The core instructional aid allowance for 
fiscal year 2000 1998 and thereafter is zero. 
    Subd. 3.  [SPECIAL NEED AID.] Each district shall receive 
special need aid equal to zero times the number of actual pupil 
units for the school year times the district's special need 
index. 
    Subd. 4.  [COST DIFFERENTIAL AID.] Each district shall 
receive aid equal to zero times the number of actual pupil units 
for the school year times its cost differential index.  This aid 
is only available if the district has implemented a career 
teacher program. 
    Subd. 3a.  [AID TO LEARNING SITES.] Each district is 
encouraged to direct core instructional aid to the learning 
sites in the district and minimize the core instructional aid 
used for other programs or services.  Each district shall, to 
the extent possible, facilitate allocation of each learning 
site's core instructional aid by site management teams 
consisting of site administrators, teachers, parents, and other 
interested persons. 
    Subd. 5.  [AID USES.] Aid received under this section may 
only be used to deliver instructional services needed to assure 
that all pupils in the district achieve the basic outcomes 
through the following uses programs and services: 
    (1) salaries and benefits for licensed and nonlicensed 
instructional staff used to instruct or direct instructional 
delivery or provide academic instructional support services; 
    (2) instructional supplies and resources including, but not 
limited to, curricular materials, maps, individualized 
instructional materials, test materials, and other related 
supplies; 
    (3) tuition payments to other service providers for direct 
instruction or instructional materials; and 
    (4) computers, interactive television, and other 
technologically related equipment used in the direct delivery of 
instruction.; 
    (5) programs and services related to students' academic and 
career progression including, but not limited to, community- and 
work-based learning through mentoring, community service, and 
youth apprenticeships; 
    (6) early childhood education programs designed to ensure 
that students are ready to learn when they enter the education 
system; and 
    (7) activities related to measurement of student progress 
toward basic outcomes. 
    Sec. 26.  [124A.711] [SUPPORT SERVICES AID.] 
    Subdivision 1.  [SUPPORT SERVICES.] "Support services" 
means services and programs beyond the core instruction 
considered essential to allow students to achieve the basic 
outcomes including, but not limited to, the following: 
    (1) counselors, psychologists, and social workers; 
    (2) services and programs for students needing special 
education and handicapped children aged zero to three; 
    (3) health care, including early childhood screening; 
    (4) transportation; 
    (5) nutrition programs; 
    (6) libraries and other media and information centers; 
    (7) programs for specialized curricula relating to programs 
such as violence prevention, AIDS awareness and prevention, and 
drug abuse prevention; and 
    (8) programs and services for students judged to be at high 
risk of not completing their education or otherwise having a 
social or economic problems in excess of other students. 
    Subd. 2.  [DETERMINATION OF AID.] The total amount of 
support services aid shall be determined according to indices 
for each service recommended by the commissioner of education 
after consultations with appropriate state agencies, educators, 
and other interested persons.  The commissioner shall recommend 
indices and aid amounts to the legislature by February 1 of each 
odd-numbered year.  The indices shall reflect the need for each 
service based on the economic, geographic, demographic, and 
other appropriate characteristics of each district. 
    Sec. 27.  Minnesota Statutes 1992, section 273.13, 
subdivision 23, is amended to read: 
    Subd. 23.  [CLASS 2.] (a) Class 2a property is agricultural 
land including any improvements that is homesteaded.  The market 
value of the house and garage and immediately surrounding one 
acre of land has the same class rates as class 1a property under 
subdivision 22.  If the market value of the house, garage, and 
surrounding one acre of land is less than $115,000, The value of 
the remaining land including improvements equal up to the 
difference between $115,000 and the market value of the house, 
garage, and surrounding one acre of land has a net class rate of 
.45 percent of market value and a gross class rate of 1.75 
percent of market value.  The remaining value of class 2a 
property over $115,000 of market value that does not exceed 320 
acres has a net class rate of 1.3 one percent of market value, 
and a gross class rate of 2.25 percent of market value.  The 
remaining property over the $115,000 market value in excess of 
320 acres has a class rate of 1.6 1.5 percent of market value, 
and a gross class rate of 2.25 percent of market value.  
    (b) Class 2b property is (1) real estate, rural in 
character and used exclusively for growing trees for timber, 
lumber, and wood and wood products; and (2) real estate that is 
nonhomestead agricultural land.  Class 2b property has a net 
class rate of 1.6 1.5 percent of market value, and a gross class 
rate of 2.25 percent of market value.  
    (c) Agricultural land as used in this section means 
contiguous acreage of ten acres or more, primarily used during 
the preceding year for agricultural purposes.  Agricultural use 
may include pasture, timber, waste, unusable wild land, and land 
included in state or federal farm programs.  "Agricultural 
purposes" as used in this section means the raising or 
cultivation of agricultural products.  
    (d) Real estate of less than ten acres used principally for 
raising or cultivating agricultural products, shall be 
considered as agricultural land, if it is not used primarily for 
residential purposes.  
    (e) The term "agricultural products" as used in this 
subdivision includes:  
    (1) livestock, dairy animals, dairy products, poultry and 
poultry products, fur-bearing animals, horticultural and nursery 
stock described in sections 18.44 to 18.61, fruit of all kinds, 
vegetables, forage, grains, bees, and apiary products by the 
owner; 
    (2) fish bred for sale and consumption if the fish breeding 
occurs on land zoned for agricultural use; 
     (3) the commercial boarding of horses if the boarding is 
done in conjunction with raising or cultivating agricultural 
products as defined in clause (1); and 
     (4) property which is owned and operated by nonprofit 
organizations used for equestrian activities, excluding racing.  
     (f) If a parcel used for agricultural purposes is also used 
for commercial or industrial purposes, including but not limited 
to:  
     (1) wholesale and retail sales; 
    (2) processing of raw agricultural products or other goods; 
    (3) warehousing or storage of processed goods; and 
    (4) office facilities for the support of the activities 
enumerated in clauses (1), (2), and (3), 
the assessor shall classify the part of the parcel used for 
agricultural purposes as class 1b, 2a, or 2b, whichever is 
appropriate, and the remainder in the class appropriate to its 
use.  The grading, sorting, and packaging of raw agricultural 
products for first sale is considered an agricultural purpose.  
A greenhouse or other building where horticultural or nursery 
products are grown that is also used for the conduct of retail 
sales must be classified as agricultural if it is primarily used 
for the growing of horticultural or nursery products from seed, 
cuttings, or roots and occasionally as a showroom for the retail 
sale of those products.  Use of a greenhouse or building only 
for the display of already grown horticultural or nursery 
products does not qualify as an agricultural purpose.  
    The assessor shall determine and list separately on the 
records the market value of the homestead dwelling and the one 
acre of land on which that dwelling is located.  If any farm 
buildings or structures are located on this homesteaded acre of 
land, their market value shall not be included in this separate 
determination.  
    Sec. 28.  Minnesota Statutes 1992, section 273.1398, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] (a) In this section, the 
terms defined in this subdivision have the meanings given them. 
    (b) "Unique taxing jurisdiction" means the geographic area 
subject to the same set of local tax rates. 
    (c) "Gross tax capacity" means the product of the gross 
class rates and estimated market values.  "Total gross tax 
capacity" means the gross tax capacities for all property within 
the unique taxing jurisdiction.  The total gross tax capacity 
used shall be reduced by the sum of (1) the unique taxing 
jurisdiction's gross tax capacity of commercial industrial 
property as defined in section 473F.02, subdivision 3, 
multiplied by the ratio determined pursuant to section 473F.08, 
subdivision 6, for the municipality, as defined in section 
473F.02, subdivision 8, in which the unique taxing jurisdiction 
is located, (2) the gross tax capacity of the captured value of 
tax increment financing districts as defined in section 469.177, 
subdivision 2, and (3) the gross tax capacity of transmission 
lines deducted from a local government's total gross tax 
capacity under section 273.425.  Gross tax capacity cannot be 
less than zero. 
    (d) "Net tax capacity" means the product of (i) the 
appropriate net class rates for the year in which the aid is 
payable, except that for aids payable in 1992 the class rate 
applied to class 4b property shall be 2.9 percent; the class 
rate applied to class 4a property shall be 3.55 percent; the 
class rate applied to noncommercial seasonal recreational 
residential property shall be 2.25 percent; and the class rates 
applied to portions of class 1a, 1b, and 2a property shall be 2 
percent for the market value between $68,000 and $110,000 and 
2.5 percent for the market value over $110,000; for aid payable 
in 1993 the class rate applicable to class 4a shall be 3.5 
percent; and the class rate applicable to class 4b shall be 2.65 
percent; and for aid payable in 1994 the class rate applicable 
to class 4b shall be 2.4 percent and the class rate applicable 
to class 2a property over $115,000 market value and less than 
320 acres is 1.15 percent, and (ii) estimated market values for 
the assessment two years prior to that in which aid is payable.  
The exclusion of the value of the house, garage, and one acre 
from the first tier of agricultural homestead property must not 
be considered in determining net tax capacity for purposes of 
this paragraph for aids payable in 1994.  The reclassification 
of mobile home parks as class 4c shall not be considered in 
determining net tax capacity for purposes of this paragraph for 
aids payable in 1991 or 1992.  Any reclassification of property 
by Laws 1991, chapter 291, shall not be considered in 
determining net tax capacity for aids payable in 1992.  "Total 
net tax capacity" means the net tax capacities for all property 
within the unique taxing jurisdiction.  The total net tax 
capacity used shall be reduced by the sum of (1) the unique 
taxing jurisdiction's net tax capacity of commercial industrial 
property as defined in section 473F.02, subdivision 3, 
multiplied by the ratio determined pursuant to section 473F.08, 
subdivision 6, for the municipality, as defined in section 
473F.02, subdivision 8, in which the unique taxing jurisdiction 
is located, (2) the net tax capacity of the captured value of 
tax increment financing districts as defined in section 469.177, 
subdivision 2, and (3) the net tax capacity of transmission 
lines deducted from a local government's total net tax capacity 
under section 273.425.  For purposes of determining the net tax 
capacity of property referred to in clauses (1) and (2), the net 
tax capacity shall be multiplied by the ratio of the highest 
class rate for class 3a property for taxes payable in the year 
in which the aid is payable to the highest class rate for class 
3a property in the prior year.  Net tax capacity cannot be less 
than zero. 
    (e) (d) "Previous net tax capacity" means the product of 
the appropriate net class rates for the year previous to the 
year in which the aid is payable, and estimated market values 
for the assessment two years prior to that in which aid is 
payable.  "Total previous net tax capacity" means the previous 
net tax capacities for all property within the unique taxing 
jurisdiction.  The total previous net tax capacity shall be 
reduced by the sum of (1) the unique taxing jurisdiction's 
previous net tax capacity of commercial-industrial property as 
defined in section 473F.02, subdivision 3, multiplied by the 
ratio determined pursuant to section 473F.08, subdivision 6, for 
the municipality, as defined in section 473F.02, subdivision 8, 
in which the unique taxing jurisdiction is located, (2) the 
previous net tax capacity of the captured value of tax increment 
financing districts as defined in section 469.177, subdivision 
2, and (3) the previous net tax capacity of transmission lines 
deducted from a local government's total net tax capacity under 
section 273.425.  Previous net tax capacity cannot be less than 
zero. 
    (f) (e) "Equalized market values" are market values that 
have been equalized by dividing the assessor's estimated market 
value for the second year prior to that in which the aid is 
payable by the assessment sales ratios determined by class in 
the assessment sales ratio study conducted by the department of 
revenue pursuant to section 124.2131 in the second year prior to 
that in which the aid is payable.  The equalized market values 
shall equal the unequalized market values divided by the 
assessment sales ratio. 
    (g) "1989 local tax rate" means the quotient derived by 
dividing the gross taxes levied within a unique taxing 
jurisdiction for taxes payable in 1989 by the gross tax capacity 
of the unique taxing jurisdiction for taxes payable in 1989.  
For computation of the local tax rate for aid payable in 1991 
and subsequent years, gross taxes for taxes payable in 1989 
exclude equalized levies as defined in subdivision 2a.  For 
purposes of computation of the local tax rate only, gross taxes 
shall not be adjusted by inflation or household growth. 
    (h) (f) "Equalized school levies" means the amounts levied 
for: 
    (1) general education under section 124A.23, subdivision 2; 
    (2) supplemental revenue under section 124A.22, subdivision 
8a; 
    (3) capital expenditure facilities revenue under section 
124.243, subdivision 3; 
    (4) capital expenditure equipment revenue under section 
124.244, subdivision 2; 
    (5) basic transportation under section 124.226, subdivision 
1; and 
    (6) referendum revenue under section 124A.03. 
    (g) "Current local tax rate" means the quotient derived by 
dividing the taxes levied within a unique taxing jurisdiction 
for taxes payable in the year prior to that for which aids are 
being calculated by the net tax capacity of the unique taxing 
jurisdiction.  
    (i) For purposes of calculating the homestead and 
agricultural credit aid authorized pursuant to subdivision 2, 
the "subtraction factor" is the product of (i) a unique taxing 
jurisdiction's 1989 local tax rate; (ii) its total net tax 
capacity; and (iii) 0.9767. 
    (j) (h) For purposes of calculating and allocating 
homestead and agricultural credit aid authorized pursuant to 
subdivision 2 and the disparity reduction aid authorized in 
subdivision 3, "gross taxes levied on all properties," "gross 
taxes," or "taxes levied" means the total taxes levied on all 
properties except that levied on the captured value of tax 
increment districts as defined in section 469.177, subdivision 
2, and that levied on the portion of commercial industrial 
properties' assessed value or gross tax capacity, as defined in 
section 473F.02, subdivision 3, subject to the areawide tax as 
provided in section 473F.08, subdivision 6, in a unique taxing 
jurisdiction.  Gross taxes levied on all properties or gross 
taxes are before reduction by any credits for taxes payable in 
1989.  "Gross taxes" are before any reduction for disparity 
reduction aid but "taxes levied" are after any reduction for 
disparity reduction aid.  Gross taxes levied or taxes levied 
cannot be less than zero.  
    "Taxes levied" excludes actual amounts levied for purposes 
listed in subdivision 2a equalized school levies. 
    (k) (i) "Human services aids" means: 
    (1) aid to families with dependent children under sections 
256.82, subdivision 1, and 256.935, subdivision 1; 
    (2) medical assistance under sections 256B.041, subdivision 
5, and 256B.19, subdivision 1; 
    (3) general assistance medical care under section 256D.03, 
subdivision 6; 
    (4) general assistance under section 256D.03, subdivision 
2; 
    (5) work readiness under section 256D.03, subdivision 2; 
    (6) emergency assistance under section 256.871, subdivision 
6; 
    (7) Minnesota supplemental aid under section 256D.36, 
subdivision 1; 
    (8) preadmission screening and alternative care grants; 
    (9) work readiness services under section 256D.051; 
    (10) case management services under section 256.736, 
subdivision 13; 
    (11) general assistance claims processing, medical 
transportation and related costs; and 
    (12) medical assistance, medical transportation and related 
costs. 
    (l) "Cost-of-living adjustment factor" means the greater of 
one or one plus the percentage increase in the consumer price 
index minus .36 percent.  In no case may the cost of living 
adjustment factor exceed 1.0394.  
    (m) The percentage increase in the consumer price index 
means the percentage, if any, by which: 
    (1) the consumer price index for the calendar year 
preceding that in which aid is payable, exceeds 
    (2) the consumer price index for calendar year 1989.  
    (n) "Consumer price index for any calendar year" means the 
average of the consumer price index as of the close of the 
12-month period ending on May 31 of such calendar year.  
    (o) "Consumer price index" means the last consumer price 
index for all-urban consumers published by the department of 
labor.  For purposes of the preceding sentence, the revision of 
the consumer price index which is most consistent with the 
consumer price index for calendar year 1989 shall be used. 
    (p) (j) "Household adjustment factor" means the number of 
households for the second most recent year preceding that in 
which the aids are payable divided by the number of households 
for the third most recent year.  The household adjustment factor 
cannot be less than one.  
    (q) (k) "Growth adjustment factor" means the household 
adjustment factor in the case of counties, cities, and towns.  
In the case of school districts the growth adjustment factor 
means the average daily membership of the school district under 
section 124.17, subdivision 2, for the school year ending in the 
second most recent year preceding that in which the aids are 
payable divided by the average daily membership for the third 
most recent year.  In the case of special taxing districts, the 
growth adjustment factor equals one.  The growth adjustment 
factor cannot be less than one.  
    (r) (l) For aid payable in 1992 and subsequent years, 
"homestead and agricultural credit base" means the previous 
year's certified homestead and agricultural credit aid 
determined under subdivision 2 less any permanent aid reduction 
in the previous year to homestead and agricultural credit aid 
under section 477A.0132, plus, for aid payable in 1992, fiscal 
disparity homestead and agricultural credit aid under 
subdivision 2b.  
    (s) (m) "Net tax capacity adjustment" means (1) the total 
previous net tax capacity minus the total net tax capacity, 
multiplied by (2) the unique taxing jurisdiction's current local 
tax rate.  The net tax capacity adjustment cannot be less than 
zero. 
    (t) (n) "Fiscal disparity adjustment" means the difference 
between (1) a taxing jurisdiction's fiscal disparity 
distribution levy under section 473F.08, subdivision 3, clause 
(a), for taxes payable in the year prior to that for which aids 
are being calculated, and (2) the same distribution levy 
multiplied by the ratio of the highest class rate for class 3 
property for taxes payable in the year prior to that for which 
aids are being calculated to the highest class rate for class 3 
property for taxes payable in the second prior year to that for 
which aids are being calculated.  In the case of school 
districts, the fiscal disparity distribution levy shall exclude 
that part of the levy attributable to equalized school levies as 
defined in subdivision 2a. 
    Sec. 29.  Minnesota Statutes 1992, section 273.1398, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [EDUCATION LEVY REDUCTION.] (a) As used in this 
subdivision, "equalized levies" means the sum of the maximum 
amounts that may be levied for: 
    (1) general education under section 124A.23, subdivision 2; 
    (2) supplemental revenue under section 124A.23, subdivision 
2a; 
    (3) capital expenditure facilities revenue under section 
124.243, subdivision 3; 
    (4) capital expenditure equipment revenue under section 
124.44, subdivision 2; and 
    (5) basic transportation under section 124.226, subdivision 
1; and 
    (6) referendum revenue under section 124A.03.  
    (b) By December 1, the commissioner of education shall 
determine and certify to the commissioner of revenue the amount 
of the education levy reduction.  The reduction shall be equal 
to the amount by which: 
    (1) the amount that would have been computed as the 
district's total maximum levy for property taxes payable in 
1990, if the equalized levies had been based upon the district's 
adjusted gross tax capacity, the general education tax rate had 
been 29.1 percent, the taconite levy reduction limit according 
to section 124.918, subdivision 8, had been 10.22 percent of 
adjusted gross tax capacity, and the capital expenditure 
equipment and facilities levies had been calculated using 70 
percent of the equalizing factor, exceeds 
    (2) the amount that would have been computed as the 
district's total maximum levy for property taxes payable in 
1990, if the equalized levies had been based upon the district's 
adjusted net tax capacity, the general education tax rate had 
been 29.1 percent, the taconite levy reduction limit according 
to section 124.918, subdivision 8, had been 10.22 percent of 
adjusted net tax capacity, and the capital expenditure equipment 
and facilities levies had been calculated using 70 percent of 
the equalizing factor. 
    (c) For property taxes payable in 1990, the amount of the 
education levy reduction shall be deducted from the homestead 
and agricultural credit aid payable to each school district 
under subdivision 2. 
    Homestead and agricultural credit aid shall not be reduced 
below zero. 
    Sec. 30.  Minnesota Statutes 1992, section 275.065, 
subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 29 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 review its current budget and 
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 124.82, 
subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
or 136C.411, after the proposed levy was certified; 
    (2) the amount of a city or county levy approved by the 
voters 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; 
and 
    (7) the amount required under section 124.755. 
    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 of a school district, shall adopt its final 
property tax levy prior to adopting its final budget. 
    If the hearing is not completed on its scheduled date, the 
taxing authority must announce, prior to adjournment of the 
hearing, the date, time, and place for the continuation of the 
hearing.  The continued hearing must be held at least five 
business days but no more than 14 business days after the 
original hearing. 
     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 governing body of a county shall hold its hearing on the 
second Tuesday in December each year.  The county auditor shall 
provide for the coordination of hearing dates for all cities and 
school districts within the county. 
    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.  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 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.  The city must not select dates that conflict 
with the county hearing dates or with those elected by or 
assigned to the school districts in which the city is located. 
    The county hearing dates and the city and school district 
hearing dates must be designated on the notices required under 
subdivision 3.  The continuation dates need not be stated on the 
notices.  
    This subdivision does not apply to towns and special taxing 
districts.  
     Sec. 31.  Minnesota Statutes 1992, section 298.28, 
subdivision 4, is amended to read: 
    Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
ton plus the increase provided in paragraph (d) must be 
allocated to qualifying school districts to be distributed, 
based upon the certification of the commissioner of revenue, 
under paragraphs (b) and (c). 
    (b) 5.5 cents per taxable ton must be distributed 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 distribution must be based on the 
apportionment formula prescribed in subdivision 2. 
    (c)(i) 22 cents per taxable ton, less any amount 
distributed under paragraph (e), shall be distributed to a group 
of school districts comprised of those school districts in which 
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 indexes 
as follows:  for each school district, its pupil units 
determined under section 124.17 for the prior second previous 
school year shall be multiplied by the ratio of the average 
adjusted net tax capacity per pupil unit for school districts 
receiving aid under this clause as calculated pursuant to 
chapter 124A for the school year ending prior to distribution to 
the adjusted net tax capacity per pupil unit of the district.  
Each district shall receive that portion of the distribution 
which its index bears to the sum of the indices for all school 
districts that receive the distributions.  
    (ii) Notwithstanding clause (i), each school district that 
receives a distribution under sections 298.018; 298.23 to 
298.28, exclusive of any amount received under this clause; 
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
imposing a tax on severed mineral values that is less than the 
amount of its levy reduction under section 124.918, subdivision 
8, for the second year prior to the year of the distribution 
shall receive a distribution equal to the difference; the amount 
necessary to make this payment shall be derived from 
proportionate reductions in the initial distribution to other 
school districts under clause (i).  
    (d) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
paragraph (c) 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 paragraph (c) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988, the increase over the amount 
established for 1987 shall be determined as if there had been an 
increase in the tax rate under section 298.24, subdivision 1, 
paragraph (b), according to the increase in the implicit price 
deflator.  On July 15, 1989 1994, 1990, and 1991, 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).  In 1992 and 1993, the amount distributed per ton shall be 
the same as that determined for distribution in 1991.  In 1994, 
the amount distributed per ton shall be equal to the amount per 
ton distributed in 1991 increased in the same proportion as the 
increase between the fourth quarter of 1988 and the fourth 
quarter of 1992 in the implicit price deflator as defined in 
section 298.24, subdivision 1.  On July 15, 1995, and subsequent 
years, and subsequent years, an amount equal to the increase 
derived by increasing the amount determined by paragraph (c) 
shall be distributed to any school district described in 
paragraph (c) where a levy increase pursuant to section 124A.03, 
subdivision 2, is authorized by referendum according to the 
following formula, 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) $175 times the pupil units identified in section 
124.17, subdivision 1, enrolled in the second previous year or 
the 1983-1984 school year, whichever is greater, less the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year; times 
    (ii) the lesser of: 
    (A) one, or 
    (B) the ratio of the sum of the amount certified pursuant 
to section 124A.03, subdivision 1g, in the previous year, plus 
the amount certified pursuant to section 124A.03, subdivision 
1i, in the previous year, plus the referendum aid according to 
section 124A.03, subdivision 1h, for the current year, to the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year. 
    If the total amount provided by paragraph (d) is 
insufficient to make the payments herein required then the 
entitlement of $175 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 
paragraph (d) shall not be applied to reduce general education 
aid which the district receives pursuant to section 124A.23 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of iron range resources and rehabilitation who 
shall deposit the same in the taconite environmental protection 
fund and the northeast Minnesota economic protection trust fund 
as provided in subdivision 11. 
    Each district receiving money according to this paragraph 
shall reserve $25 times the number of pupil units in the 
district.  It may use the money for early childhood programs or 
for outcome-based learning programs that enhance the academic 
quality of the district's curriculum.  The outcome-based 
learning programs must be approved by the commissioner of 
education.  
    (e) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    Sec. 32.  Minnesota Statutes 1992, section 473F.02, is 
amended by adding a subdivision to read: 
    Subd. 24.  [LOCAL TAX RATE.] "Local tax rate" means a 
governmental unit's levy, including any portion levied against 
market value under section 124A.03, subdivision 2a, divided by 
its net tax capacity. 
    Sec. 33.  [SPECIAL DEFINITION OF A PUPIL UNIT IN ONAMIA.] 
    Notwithstanding Minnesota Statutes, section 124.17, for 
fiscal year 1994 only, a resident pupil of independent school 
district No. 480, Onamia, who enrolls in a nonpublic school 
located on a reservation shall be counted as one-half of a pupil 
unit in average daily membership. 
    Sec. 34.  [GENERAL EDUCATION REVENUE REDUCTION; SLAYTON.] 
    Subdivision 1.  [QUALIFICATION.] Independent school 
district No. 504, Slayton, is eligible for revenue under this 
section if the district has an approved plan for cooperation and 
combination.  If the referendum required under Minnesota 
Statutes, section 122.243, subdivision 2, fails, the aid 
adjustment required in subdivision 2 cancels and the department 
of education shall make a negative adjustment to the following 
year's aid payments for any amount actually paid to the 
district.  If the referendum fails, the district's levy 
authority under subdivision 3 is canceled.  If the levy has 
already been certified, the department of education shall make a 
negative levy adjustment to the following year's general 
education levy limitations. 
    Subd. 2.  [AID ADJUSTMENT.] For fiscal year 1994 only, the 
department of education shall include in the general education 
aid calculation for independent school district No. 504, 
Slayton, the sum of the amounts by which the district's general 
education aid was reduced for fiscal years 1992 and 1993 under 
Minnesota Statutes, section 124A.26. 
    Subd. 3.  [LEVY ADJUSTMENT.] For 1993 taxes payable in 1994 
only, independent school district No. 504, Slayton, or its 
successor district, may levy an amount not to exceed the sum of 
the levy reductions for fiscal years 1992 and 1993 resulting 
from the general education revenue fund balance reduction under 
Minnesota Statutes, section 124A.26. 
    Sec. 35.  [COALITION FOR EDUCATION REFORM AND 
ACCOUNTABILITY; TRANSITION PROVISIONS.] 
    Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The coalition for 
educational reform and accountability is established to promote 
public understanding of and support for policies and practices 
that help Minnesota students attain world-class education 
outcomes and succeed in the 21st century.  The coalition shall 
promote innovation and sustainable reform in education. 
    Subd. 2.  [MEMBERSHIP.] The coalition shall consist of 24 
members.  The coalition is encouraged to seek private donations 
and may hire an executive director if funds are available.  The 
members, appointed by the panel in subdivision 3, must include 
eight people directly involved in public education including 
higher education, six people who represent state and local 
governments, and ten people who are public members, including 
parents, business leaders, labor leaders, government leaders, 
educators, journalists, and others who have demonstrated a 
commitment to excellence in Minnesota public schools.  
Membership terms and removal are governed by Minnesota Statutes, 
section 15.059. 
    Subd. 3.  [PANEL.] A panel, composed of one person 
appointed by the governor, one person appointed by the speaker 
of the House of Representatives, one person appointed by the 
subcommittee on committees of the Senate committee on rules and 
administration, and the commissioner of education, shall appoint 
the members of the coalition.  The members of the panel 
appointed by the speaker and the subcommittee on committees 
shall serve as two of the six members of the coalition 
representing state and local government.  The panel shall 
consider gender and geographical and racial diversity in the 
appointments.  The commissioner of education shall chair and 
convene the panel.  The panel must make the first appointments 
to the coalition by September 1, 1993. 
    Subd. 4.  [ACTIVITIES TO PROMOTE INNOVATION.] Coalition 
activities to promote innovation and sustainable reform in 
education include: 
    (1) developing a strategic plan and corresponding target 
dates for implementing major reform goals and practices; 
    (2) encouraging and supporting policies to bring systemic 
change into the state's public schools; 
    (3) assisting in implementing various reform and 
accountability initiatives adopted by the state; 
    (4) reporting annually on the state's progress in 
developing and implementing student and system outcomes; and 
    (5) working with all stakeholders to identify and monitor 
their respective responsibilities for helping students and the 
public education system achieve educational objectives. 
    Subd. 5.  [FINANCIAL PLAN.] The coalition must deliver to 
the legislature by January 31, 1995, a plan to achieve the 
purposes of Minnesota Statutes, sections 124A.698 to 124A.72.  
The plan shall at least include: 
    (1) proposed definitions and estimated costs of core 
instruction, support services, and local discretionary services; 
    (2) an implementation schedule for realizing this section 
by fiscal year 2000; 
    (3) a process to monitor the development of education 
outcomes and make proposals for rewarding the progress that 
learning sites make toward achieving the outcomes and assisting 
those learning sites unable to make such progress; 
    (4) consideration of whether the delivery system for 
implementing the proposed changes is more appropriately a 
prekindergarten through grade 10 system combined with a revised 
post-secondary system or the current prekindergarten through 
grade 12 system, and an examination of the most effective 
delivery system for programs such as youth apprenticeship, 
enrollment options, technical preparation, and secondary 
vocational programs, and area learning centers; and 
    (5) other law and rule changes necessary to accomplish the 
purposes of this section. 
    Subd. 6.  [STUDY.] The coalition, in conjunction with the 
Minnesota state high school league, the Minnesota academic 
excellence foundation, and the Minnesota school board 
association shall study the cost of and accounting for 
co-curricular and extracurricular activities and the 
implications of how the activities are funded.  The coalition 
shall deliver the results of the study to the legislature with 
the plan required under subdivision 5.  
    Subd. 7.  [EXPIRATION.] Notwithstanding Minnesota Statutes, 
section 15.059, subdivision 5, the coalition expires June 30, 
2000. 
    Sec. 36.  [LEVY ADJUSTMENT; APPLETON.] 
    Notwithstanding any law to the contrary, independent school 
district No. 784, Appleton, must not receive a negative levy 
adjustment for any referendum levy certified for taxes payable 
in 1992.  For taxes payable in 1994 only, independent school 
district No. 784, Appleton, shall make a positive levy 
adjustment in an amount equal to the amount of the negative levy 
adjustment attributable to the district's referendum levy made 
to the district's 1992 taxes payable in 1993. 
    Sec. 37.  [REFERENDUM AUTHORITY.] 
    Unless scheduled to expire sooner, a referendum levy 
authorized under section 124A.03, expires July 1, 1997. 
    Sec. 38.  [TAX CREDIT ADJUSTMENT.] 
    Prior to the computation of homestead and agricultural aid 
for taxes payable in 1994, the commissioner of revenue shall 
reduce a school district's homestead and agricultural aid by an 
amount equal to the homestead and agricultural aid for calendar 
year 1993 times the ratio of referendum levy certified for 1993 
to the certified unequalized levies for 1993.  The department of 
education shall determine the change in referendum levies 
payable in 1994 attributable to the increase in equalization 
under sections 8 and 9.  Notwithstanding any law to the 
contrary, a district may recognize revenue equal to one-half of 
the levy reduction in the fiscal year the levy is certified and 
each year thereafter. 
    Sec. 39.  [PAYMENT DATES.] 
    Upon notification from the commissioner of finance of the 
need to reduce or avoid state short-term borrowing in fiscal 
year 1995, the commissioner of education shall delay payments 
due under section 124.195, subdivision 3, by up to ten business 
days.  For purposes of this section, the commissioner of 
education may make adjustments in the amount of delayed payments 
to a school district if it is determined that the district's 
cash balances will not be sufficient to cover payroll during the 
15-day period following the due date. 
    Sec. 40.  [GENERAL EDUCATION REVENUE CORRECTION.] 
    Subdivision 1.  [DULUTH RECOMPUTATION.] The department of 
education shall recompute the base revenue in fiscal year 1988 
for supplemental revenue determination for fiscal year 1994 and 
thereafter for the omission of supplemental pension 
contributions for independent school district No. 709, Duluth. 
    Subd. 2.  [COMPUTATION.] The department of education, with 
consultation of the legislative commission on pensions and 
retirement, shall determine the pension contribution amounts in 
subdivision 1. 
    Sec. 41.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
general and supplemental education aid:  
     $1,795,024,000    .....     1994
     $2,040,181,000    .....     1995
    The 1994 appropriation includes $257,551,000 for 1993 and 
$1,537,473,000 for 1994.  
    The 1995 appropriation includes $270,110,000 for 1994 and 
$1,770,071,000 for 1995.  
    Sec. 42.  [REPEALER.] 
    Laws 1988, chapter 486, section 59, is repealed.  Minnesota 
Statutes 1992, section 124.197, is repealed July 1, 1993.  
    Sec. 43.  [EFFECTIVE DATE.] 
    Section 16 is effective for supplemental revenue beginning 
July 1, 1993.  Sections 7, 8, 9, 10, 11, 13, 14, 15, 17, 22, and 
23 are effective for revenue for fiscal year 1995.  
    Section 6 is effective the day following final enactment 
and shall be applicable to all school district debt obligations 
issued on or after its effective date.  
    Section 4 is effective for assessment year 1992 and 
subsequent years.  Section 28 is effective for taxes payable in 
1994 and subsequent years.  Section 29 is effective for aids 
payable in 1994 and subsequent years. 

                               ARTICLE 2

                             TRANSPORTATION
    Section 1.  Minnesota Statutes 1992, section 120.062, 
subdivision 9, is amended to read: 
    Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
of a pupil, the nonresident district shall provide 
transportation within the district.  The state shall pay 
transportation aid to the district according to section 124.225. 
    The resident district is not required to provide or pay for 
transportation between the pupil's residence and the border of 
the nonresident district.  A parent may be reimbursed by the 
nonresident district for the costs of transportation from the 
pupil's residence to the border of the nonresident district if 
the pupil is from a family whose income is at or below the 
poverty level, as determined by the federal government.  The 
reimbursement may not exceed the pupil's actual cost of 
transportation or 15 cents per mile traveled, whichever is 
less.  Reimbursement may not be paid for more than 250 miles per 
week.  
    At the time a nonresident district notifies a parent or 
guardian that an application has been accepted under subdivision 
5 or 6, the nonresident district must provide the parent or 
guardian with the following information regarding the 
transportation of nonresident pupils under this section: 
    (1) a nonresident district may transport a pupil within the 
pupil's resident district under this section only with the 
approval of the resident district; and 
    (2) a parent or guardian of a pupil attending a nonresident 
district under this section may appeal under section 123.39, 
subdivision 6, the refusal of the resident district to allow the 
nonresident district to transport the pupil within the resident 
district. 
    (b) Notwithstanding paragraph (a) and section 124.225, 
subdivision 8l, transportation provided by a nonresident 
district between home and school for a pupil attending school 
under this section is authorized for nonregular transportation 
revenue under section 124.225, if the following criteria are met:
    (1) the school that the pupil was attending prior to 
enrolling in the nonresident district under this section was 
closed; 
    (2) the distance from the closed school to the next nearest 
school in the district that the student could attend is at least 
20 miles; 
    (3) the pupil's residence is at least 20 miles from any 
school that the pupil could attend in the resident district; and 
    (4) the pupil's residence is closer to the school of 
attendance in the nonresident district than to any school the 
pupil could attend in the resident district. 
    Sec. 2.  Minnesota Statutes 1992, section 120.73, 
subdivision 1, is amended to read: 
    Subdivision 1.  A school board is authorized to require 
payment of fees in the following areas: 
     (a) in any program where the resultant product, in excess 
of minimum requirements and at the pupil's option, becomes the 
personal property of the pupil; 
     (b) admission fees or charges for extra curricular 
activities, where attendance is optional; 
     (c) a security deposit for the return of materials, 
supplies, or equipment; 
     (d) personal physical education and athletic equipment and 
apparel, although any pupil may personally provide it if it 
meets reasonable requirements and standards relating to health 
and safety established by the school board; 
     (e) items of personal use or products which a student has 
an option to purchase such as student publications, class rings, 
annuals, and graduation announcements; 
     (f) fees specifically permitted by any other statute, 
including but not limited to section 171.04, subdivision 1, 
clause (1); 
     (g) field trips considered supplementary to a district 
educational program; 
     (h) any authorized voluntary student health and accident 
benefit plan; 
     (i) for the use of musical instruments owned or rented by 
the district, a reasonable rental fee not to exceed either the 
rental cost to the district or the annual depreciation plus the 
actual annual maintenance cost for each instrument; 
    (j) transportation of pupils to and from extra curricular 
activities conducted at locations other than school, where 
attendance is optional; 
    (k) transportation of pupils to and from school for which 
aid is not authorized under section 124.223, subdivision 1, and 
for which levy is not authorized under section 124.226, 
subdivision 5, if a district charging fees for transportation of 
pupils establishes guidelines for that transportation to ensure 
that no pupil is denied transportation solely because of 
inability to pay; 
    (l) motorcycle classroom education courses conducted 
outside of regular school hours; provided the charge shall not 
exceed the actual cost of these courses to the school district; 
    (m) transportation to and from post-secondary institutions 
for pupils enrolled under the post-secondary enrollment options 
program under section 123.39, subdivision 16.  Fees collected 
for this service must be reasonable and shall be used to reduce 
the cost of operating the route.  Families who qualify for 
mileage reimbursement under section 123.3514, subdivision 8, may 
use their state mileage reimbursement to pay this fee.  If no 
fee is charged, districts shall allocate costs based on the 
number of pupils riding the route. 
    Sec. 3.  Minnesota Statutes 1992, section 123.39, is 
amended by adding a subdivision to read: 
    Subd. 15.  [PUPIL TRANSPORT ON STAFF DEVELOPMENT DAYS.] A 
school district may provide bus transportation between home and 
school for pupils on days devoted to parent-teacher conferences, 
teacher's workshops, or other staff development opportunities.  
If approved by the commissioner as part of a program of 
educational improvement, the cost of providing this 
transportation, as determined by generally accepted accounting 
principles, must be considered part of the authorized cost for 
regular transportation for the purposes of section 124.225.  The 
commissioner shall approve inclusion of these costs in the 
regular transportation category only if the total number of 
instructional hours in the school year divided by the total 
number of days for which transportation is provided equals or 
exceeds the number of instructional hours per day prescribed in 
the rules of the state board.  
    Sec. 4.  Minnesota Statutes 1992, section 123.39, is 
amended by adding a subdivision to read: 
    Subd. 16.  [POST-SECONDARY ENROLLMENT OPTIONS 
PUPILS.] School districts may provide bus transportation along 
school bus routes established to provide nonregular 
transportation as defined in section 124.225, subdivision 1, 
paragraph (c), clause (2), when space is available, for pupils 
attending programs at a post-secondary institution under the 
post-secondary enrollment options program.  The transportation 
is permitted only if it does not increase the district's 
expenditures for transportation.  Fees collected for this 
service under section 120.73, subdivision 1, paragraph (m), 
shall be subtracted from the authorized cost for nonregular 
transportation for the purpose of section 124.225. 
    Sec. 5.  Minnesota Statutes 1992, section 124.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
    (1) all expenditures for transportation in the regular 
category, as defined in paragraph (c), clause (1), for which aid 
is authorized in section 124.223, plus 
    (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 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) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.01, subdivision 6, paragraph (c), which were purchased after 
July 1, 1982, for authorized transportation of pupils, with the 
prior approval of the commissioner, computed on a straight line 
basis at the rate of 20 percent per year of the cost of the type 
three school buses.  
     (c) "Transportation category" means a category of 
transportation service provided to pupils as follows:  
     (1) Regular transportation is transportation services 
provided during the regular school year under section 124.223, 
subdivisions 1 and 2, excluding the following transportation 
services provided under section 124.223, subdivision 1:  
transportation between schools; noon transportation to and from 
school for kindergarten pupils attending half-day sessions; 
transportation of pupils to and from schools located outside 
their normal attendance areas under the provisions of a plan for 
desegregation mandated by the state board of education or under 
court order; and transportation of elementary pupils to and from 
school within a mobility zone. 
     (2) Nonregular transportation is transportation services 
provided under section 124.223, subdivision 1, that are excluded 
from the regular category and transportation services provided 
under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
     (3) Excess transportation is transportation to and from 
school during the regular school year for secondary pupils 
residing at least one mile but less than two miles from the 
public school they could attend or from the nonpublic school 
actually attended, and transportation to and from school for 
pupils residing less than one mile from school who are 
transported because of extraordinary traffic, drug, or crime 
hazards. 
     (4) Desegregation transportation is transportation during 
the regular school year of pupils to and from schools located 
outside their normal attendance areas under a plan for 
desegregation mandated by the state board or under court order.  
     (5) Handicapped transportation is transportation provided 
under section 124.223, subdivision 4, for pupils with a 
disability between home or a respite care facility and school or 
other buildings where special instruction required by section 
120.17 is provided. 
     (d) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services, 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
     (e) "Current year" means the school year for which aid will 
be paid.  
     (f) "Base year" means the second school year preceding the 
school year for which aid will be paid.  
     (g) "Base cost" means the ratio of: 
     (1) the sum of the authorized cost in the base year for 
regular transportation as defined in paragraph (b) plus the 
actual cost in the base year for excess transportation as 
defined in paragraph (c); 
    (2) to the sum of the number of weighted FTE pupils 
transported FTE's in the regular and excess categories in the 
base year. 
    (h) "Pupil weighting factor" for the excess transportation 
category for a school district means the lesser of one, or the 
result of the following computation: 
    (1) Divide the square mile area of the school district by 
the number of FTE pupils transported FTE's in the regular and 
excess categories in the base year. 
    (2) Raise the result in clause (1) to the one-fifth power. 
    (3) Divide four-tenths by the result in clause (2). 
    The pupil weighting factor for the regular transportation 
category is one.  
    (i) "Weighted FTE's"  means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
    (j) "Sparsity index" for a school district means the 
greater of .005 or the ratio of the square mile area of the 
school district to the sum of the number of weighted FTE's 
transported by the district in the regular and excess categories 
in the base year. 
    (k) "Density index" for a school district means the greater 
of one or the result obtained by subtracting the product of the 
district's sparsity index times 20 from two. 
    (l) "Contract transportation index" for a school district 
means the greater of one or the result of the following 
computation: 
    (1) Multiply the district's sparsity index by 20. 
    (2) Select the lesser of one or the result in clause (1). 
    (3) Multiply the district's percentage of regular FTE's 
transported in the current year using vehicles that are not 
owned by the school district by the result in clause (2). 
    (m) "Adjusted predicted base cost" means the predicted base 
cost as computed in subdivision 3a as adjusted under subdivision 
7a. 
    (n) "Regular transportation allowance" means the adjusted 
predicted base cost, inflated and adjusted under subdivision 7b. 
    Sec. 6.  Minnesota Statutes 1992, section 124.225, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
base cost equals the result of the following computation:  
    (a) Multiply the transportation formula allowance by the 
district's sparsity index raised to the one-fourth power.  The 
transportation formula allowance is $421 $447 for the 1989-1990 
1991-1992 base year and $434 $463 for the 1990-1991 1992-1993 
base year.  
    (b) Multiply the result in paragraph (a) by the district's 
density index raised to the 35/100 power.  
    (c) Multiply the result in paragraph (b) by the district's 
contract transportation index raised to the 1/20 power.  
    Sec. 7.  Minnesota Statutes 1992, section 124.225, 
subdivision 7b, is amended to read: 
    Subd. 7b.  [INFLATION FACTORS.] The adjusted predicted base 
cost determined for a district under subdivision 7a for the base 
year must be increased by 4.0 2.35 percent to determine the 
district's regular transportation allowance for the 1991-1992 
1993-1994 school year and by 2.0 3.425 percent to determine the 
district's regular transportation allowance for the 1992-1993 
1994-1995 school year, but the regular transportation allowance 
for a district cannot be less than the district's minimum 
regular transportation allowance according to Minnesota Statutes 
1990, section 124.225, subdivision 1, paragraph (t). 
    Sec. 8.  Minnesota Statutes 1992, section 124.225, 
subdivision 7d, is amended to read: 
    Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
for each district equals the sum of the district's regular 
transportation revenue and the district's nonregular 
transportation revenue. 
    (a) The regular transportation revenue for each district 
equals the district's regular transportation allowance according 
to subdivision 7b times the sum of the number of FTE's 
transported by the district in the regular, desegregation, and 
handicapped categories in the current school year. 
    (b) The nonregular transportation revenue for each district 
for the 1991-1992 school year equals the lesser of the 
district's actual costs in the 1991-1992 school year for 
nonregular transportation services or the product of the 
district's actual cost in the 1990-1991 school year for 
nonregular transportation services as defined for the 1991-1992 
school year in subdivision 1, paragraph (c), times the ratio of 
the district's average daily membership for the 1991-1992 school 
year to the district's average daily membership for the 
1990-1991 school year according to section 124.17, subdivision 
2, times 1.03, minus the amount of regular transportation 
revenue attributable to FTE's transported in the desegregation 
and handicapped categories in the current school year, plus the 
excess nonregular transportation revenue for the 1991-1992 
school year according to subdivision 7e. 
    (c) For the 1992-1993 and later school years, the 
nonregular transportation revenue for each district equals the 
lesser of the district's actual cost in the current school year 
for nonregular transportation services or the product of the 
district's actual cost in the base year for nonregular 
transportation services as defined for the current year in 
subdivision 1, paragraph (c), times the ratio of the district's 
average daily membership for the current year to the district's 
average daily membership for the base year according to section 
124.17, subdivision 2, times the nonregular transportation 
inflation factor for the current year, minus the amount of 
regular transportation revenue attributable to FTE's transported 
in the desegregation and handicapped categories in the current 
school year, plus the excess nonregular transportation revenue 
for the current year according to subdivision 7e.  The 
nonregular transportation inflation factor is 1.0435 for the 
1992-1993 1993-1994 school year is 1.061 and 1.03425 for the 
1994-1995 school year.  
    Sec. 9.  Minnesota Statutes 1992, section 124.225, 
subdivision 7e, is amended to read: 
    Subd. 7e.  [EXCESS NONREGULAR TRANSPORTATION REVENUE.] (a) 
A district's excess nonregular transportation revenue for the 
1991-1992 school year equals an amount equal to 80 percent of 
the difference between: 
    (1) the district's actual cost in the 1991-1992 school year 
for nonregular transportation services as defined for the 
1991-1992 school year in subdivision 1, paragraph (c), and 
    (2) the product of the district's actual cost in the 
1990-1991 school year for nonregular transportation services as 
defined for the 1991-1992 school year in subdivision 1, 
paragraph (c), times 1.15, times the ratio of the district's 
average daily membership for the 1991-1992 school year to the 
district's average daily membership for the 1990-1991 school 
year. 
    (b) A district's excess nonregular transportation revenue 
for the 1992-1993 school year and later school years equals an 
amount equal to 80 percent of the difference between: 
    (1) the district's actual cost in the current year for 
nonregular transportation services as defined for the current 
year in subdivision 1, paragraph (c), and 
    (2) the product of the district's actual cost in the base 
year for nonregular transportation services as defined for the 
current year in subdivision 1, paragraph (c), times 1.30, times 
the ratio of the district's average daily membership for the 
current year to the district's average daily membership for the 
base year. 
    (c) The state total excess nonregular transportation 
revenue must not exceed $2,000,000 for the 1991-1992 school year 
and $2,000,000 for the 1992-1993 school year.  If the state 
total revenue according to paragraph (a) or (b) exceeds the 
limit set in this paragraph, the excess nonregular 
transportation revenue for each district equals the district's 
revenue according to paragraph (a) or (b), times the ratio of 
the limitation set in this paragraph to the state total revenue 
according to paragraph (a) or (b). 
    Sec. 10.  Minnesota Statutes 1992, section 124.226, 
subdivision 3, is amended to read: 
    Subd. 3.  [OFF-FORMULA ADJUSTMENT.] In a district if the 
basic transportation levy under subdivision 1 attributable to 
that fiscal year is more than the difference between (1) the 
district's transportation revenue under section 124.225, 
subdivision 7d, and (2) the sum of the district's maximum 
nonregular levy under subdivision 4 and the district's 
contracted services aid reduction under section 124.225, 
subdivision 8k, and the amount of any reduction due to 
insufficient appropriation under section 124.225, subdivision 
8a, the district's transportation levy in the second year 
following each fiscal year must be reduced by the difference 
between the amount of the excess and the amount of the aid 
reduction for the same fiscal year according to subdivision 3a. 
    Sec. 11.  Minnesota Statutes 1992, section 124.226, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [TRANSPORTATION LEVY EQUITY.] (a) If a 
district's basic transportation levy for a fiscal year is 
adjusted according to subdivision 3, an amount must be deducted 
from the state payments that are authorized in chapter 273 and 
that are receivable for the same fiscal year.  The amount of the 
deduction equals the difference between:  
    (1) the district's transportation revenue under section 
124.225, subdivision 7d; and 
    (2) the sum of the district's maximum basic transportation 
levy under subdivision 1, the district's maximum nonregular levy 
under subdivision 4, the district's maximum excess 
transportation levy under subdivision 5, the district's 
contracted services aid reduction under section 124.225, 
subdivision 8k, and the amount of any reduction due to 
insufficient appropriation under section 124.225, subdivision 8a.
    (b) Notwithstanding paragraph (a), for fiscal year 1995, 
the amount of the deduction is one-fourth of the difference 
between clauses (1) and (2); for fiscal year 1996, the amount of 
the deduction is one-half of the difference between clauses (1) 
and (2); and for fiscal year 1997, the amount of the deduction 
is three-fourths of the difference between clauses (1) and (2).  
    (c) The amount of the deduction in any fiscal year must not 
exceed the amount of state payments that are authorized in 
chapter 273 and that are receivable for the same fiscal year in 
the district's transportation fund. 
    Sec. 12.  Minnesota Statutes 1992, section 124.226, 
subdivision 9, is amended to read: 
    Subd. 9.  [LATE ACTIVITY BUSES.] (a) A school district may 
levy an amount equal to the lesser of: 
    (1) the actual cost of late transportation home from 
school, between schools within a district, or between schools in 
one or more districts that have an agreement under sections 
122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
involved in after school activities for the school year 
beginning in the year the levy is certified; or 
    (2) two percent of the district's regular transportation 
revenue for that school year according to section 124.225, 
subdivision 7d, paragraph (a). 
    (b) A district that levies under this section must provide 
late transportation home from school for students participating 
in any academic-related activities provided by the district if 
transportation is provided for students participating in 
athletic activities. 
    (c) A district may levy under this subdivision only if the 
district provided late transportation home from school during 
fiscal year 1991. 
    Sec. 13.  Laws 1991, chapter 265, article 2, section 19, 
subdivision 2, is amended to read: 
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
according to Minnesota Statutes, section 124.225: 
     $116,340,000     .....     1992
     $123,133,000     .....     1993
    The 1992 appropriation includes $17,679,000 for 1991 and 
$98,661,000 for 1992. 
    The 1993 appropriation includes $17,146,000 for 1992 and 
$105,987,000 for 1993. 
    $1,500,000 $2,000,000 in fiscal year 1992 and 
$1,000,000 $500,000 in fiscal year 1993 are for desegregation 
costs not funded in the regular or nonregular transportation 
formulas.  The department shall allocate these amounts in 
proportion to the unfunded desegregation costs.  Any excess of 
the 1992 amount is not available for transfer under Minnesota 
Statutes, section 124.14, subdivision 7 and is available for 
unfunded desegregation costs in 1993.  
    In fiscal year 1992, only, for purposes of this 
subdivision, "desegregation costs" means all expenditures for 
desegregation transportation as defined in Minnesota Statutes, 
section 124.225, subdivision 1, paragraph (c), clause (4), for 
which aid is authorized in Minnesota Statutes, section 124.223, 
plus an amount equal to one year's depreciation, computed 
according to Minnesota Statutes, section 124.225, subdivision 1, 
paragraph (b), clauses (2), (3), and (4), on district school 
buses used primarily for desegregation transportation.  
    Sec. 14.  [ADDITIONAL LATE ACTIVITY LEVY.] 
    A school district that is eligible to certify a levy under 
section 12 and was not eligible to certify a levy in 1992 under 
Minnesota Statutes, section 124.226, subdivision 9, may certify 
an additional amount in 1993 for taxes payable in 1994 equal to 
the amount it would have been authorized to certify in 1992 for 
taxes payable in 1993 had it been eligible.  A levy authorized 
under this section must be recognized according to Minnesota 
Statutes, section 124.918, subdivision 6. 
    Sec. 15.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
according to Minnesota Statutes, section 124.225: 
     $127,889,000     .....     1994
     $141,658,000     .....     1995
    The 1994 appropriation includes $18,327,000 for 1993 and 
$108,706,000 for 1994.  
    The 1995 appropriation includes $19,183,000 for 1994 and 
$120,410,000 for 1995.  
    Subd. 3.  [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 
OPTIONS.] For transportation of pupils attending post-secondary 
institutions according to Minnesota Statutes, section 123.3514: 
     $52,000     .....     1994
     $58,000     .....     1995
    Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
transportation of pupils attending nonresident districts 
according to Minnesota Statutes, section 120.0621: 
     $15,000     .....     1994
     $19,000     .....     1995
    Subd. 5.  [TRANSFER AUTHORITY.] If the appropriation in 
subdivision 3 or 4 for either year exceeds the amount needed to 
pay the state's obligation for that year under that subdivision, 
the excess amount may be used to make payments for that year 
under the other subdivision. 
    Sec. 16.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment. 
    Sections 10 and 11 are effective July 1, 1994. 
    Sections 12 and 14 are effective for levies certified in 
1993 for taxes payable in 1994. 
    Section 13 is effective for fiscal years 1992 and 1993 only.

                                ARTICLE 3

                            SPECIAL PROGRAMS 
    Section 1.  Minnesota Statutes 1992, section 120.17, 
subdivision 2, is amended to read: 
    Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) Special 
instruction and services for children with a disability must be 
based on the assessment and individual education plan.  The 
instruction and services may be provided by one or more of the 
following methods: 
    (1) in connection with attending regular elementary and 
secondary school classes; 
    (2) establishment of special classes; 
    (3) at the home or bedside of the child; 
    (4) in other districts; 
    (5) instruction and services by special education 
cooperative centers established under this section, or in 
another member district of the cooperative center to which the 
resident district of the child with a disability belongs; 
    (6) in a state residential school or a school department of 
a state institution approved by the commissioner; 
    (7) in other states; 
    (8) by contracting with public, private or voluntary 
agencies; 
    (9) for children under age five and their families, 
programs and services established through collaborative efforts 
with other agencies; 
    (10) for children under age five and their families, 
programs in which children with a disability are served with 
children without a disability; and 
    (11) any other method approved by the commissioner. 
    (b) Preference shall be given to providing special 
instruction and services to children under age three and their 
families in the residence of the child with the parent or 
primary caregiver, or both, present. 
    (c) The primary responsibility for the education of a child 
with a disability shall remain with the district of the child's 
residence regardless of which method of providing special 
instruction and services is used.  If a district other than a 
child's district of residence provides special instruction and 
services to the child, then the district providing the special 
instruction and services shall notify the child's district of 
residence before the child's individual education plan is 
developed and shall provide the district of residence an 
opportunity to participate in the plan's development.  The 
district of residence must inform the parents of the child about 
the methods of instruction that are available. 
    (d) Paragraphs (e) to (i) may be cited as the "blind 
persons' literacy rights and education act." 
    (e) The following definitions apply to paragraphs (f) to 
(i). 
    "Blind student" means an individual who is eligible for 
special educational services and who: 
    (1) has a visual acuity of 20/200 or less in the better eye 
with correcting lenses or has a limited field of vision such 
that the widest diameter subtends an angular distance of no 
greater than 20 degrees; or 
    (2) has a medically indicated expectation of visual 
deterioration. 
    "Braille" means the system of reading and writing through 
touch commonly known as standard English Braille.  
    "Individualized education plan" means a written statement 
developed for a student eligible for special education and 
services pursuant to this section and section 602(a)(20) of part 
A of the Individuals with Disabilities Education Act, United 
States Code, title 20, section 1401(a). 
     (f) In developing an individualized education plan for each 
blind student the presumption must be that proficiency in 
Braille reading and writing is essential for the student to 
achieve satisfactory educational progress.  The assessment 
required for each student must include a Braille skills 
inventory, including a statement of strengths and deficits.  
Braille instruction and use are not required by this paragraph 
if, in the course of developing the student's individualized 
education program, team members concur that the student's visual 
impairment does not affect reading and writing performance 
commensurate with ability.  This paragraph does not require the 
exclusive use of Braille if other special education services are 
appropriate to the student's educational needs.  The provision 
of other appropriate services does not preclude Braille use or 
instruction.  Instruction in Braille reading and writing shall 
be available for each blind student for whom the 
multidisciplinary team has determined that reading and writing 
is appropriate. 
     (g) Instruction in Braille reading and writing must be 
sufficient to enable each blind student to communicate 
effectively and efficiently with the same level of proficiency 
expected of the student's peers of comparable ability and grade 
level.  
     (h) The student's individualized education plan must 
specify: 
     (1) the results obtained from the assessment required under 
paragraph (f); 
     (2) how Braille will be implemented through integration 
with other classroom activities; 
     (3) the date on which Braille instruction will begin; 
     (4) the length of the period of instruction and the 
frequency and duration of each instructional session; 
     (5) the level of competency in Braille reading and writing 
to be achieved by the end of the period and the objective 
assessment measures to be used; and 
     (6) if a decision has been made under paragraph (f) that 
Braille instruction or use is not required for the student:  
     (i) a statement that the decision was reached after a 
review of pertinent literature describing the educational 
benefits of Braille instruction and use; and 
     (ii) a specification of the evidence used to determine that 
the student's ability to read and write effectively without 
Braille is not impaired. 
     (i) Instruction in Braille reading and writing is a service 
for the purpose of special education and services under this 
section. 
    (j) Paragraphs (e) to (i) shall not be construed to 
supersede any rights of a parent or guardian of a child with a 
disability under federal or state law. 
    Sec. 2.  Minnesota Statutes 1992, 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, methods of instruction, pupil 
eligibility, size of classes, rooms, equipment, supervision, 
parent consultation, and any other rules it deems necessary for 
instruction of children with a disability.  These rules shall 
provide standards and procedures appropriate for the 
implementation of and within the limitations of subdivisions 3a 
and 3b.  These rules shall also provide standards for the 
discipline, control, management and protection of children with 
a disability.  The state board shall not adopt rules for pupils 
served in level 1, 2, or 3, as defined in Minnesota Rules, part 
3525.2340, establishing either case loads or the maximum number 
of pupils that may be assigned to special education teachers.  
The state board, in consultation with the departments of health 
and human services, shall adopt permanent rules for instruction 
and services for children under age five and their families.  
These rules are binding on state and local education, health, 
and human services agencies.  The state board shall adopt rules 
to determine eligibility for special education services.  The 
rules shall include procedures and standards by which to grant 
variances for experimental eligibility criteria.  The state 
board shall, according to section 14.05, subdivision 4, notify a 
district applying for a variance from the rules within 45 
calendar days of receiving the request whether the request for 
the variance has been granted or denied.  If a request is 
denied, the board shall specify the program standards used to 
evaluate the request and the reasons for denying the request.  
    Sec. 3.  Minnesota Statutes 1992, section 120.17, 
subdivision 11a, is amended to read: 
    Subd. 11a.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
interagency coordinating council of at least 15 members 17, but 
not more than 25 members is established, in compliance with 
Public Law Number 102-119, section 682.  The members shall be 
appointed by the governor.  Council members shall elect the 
council chair.  The representative of the commissioner of 
education may not serve as the chair.  The council shall be 
composed of at least five parents, including persons of color, 
of children with disabilities under age 12, including at least 
three parents of a child with a disability under age 
seven, three five representatives of public or private providers 
of services for children with disabilities under age five, 
including a special education director, county social service 
director, and a community health services or public health 
nursing administrator, one member of the senate, one member of 
the house of representatives, one representative of teacher 
preparation programs in early childhood-special education or 
other preparation programs in early childhood intervention, at 
least one representative of advocacy organizations for children 
with disabilities under age five, one physician who cares for 
young children with special health care needs, one 
representative each from the commissioners of commerce, 
education, health, human services, and jobs and training, and a 
representative from Indian health services or a tribal council.  
Section 15.059, subdivisions 2 to 5, apply to the council.  The 
council shall meet at least quarterly.  
    The council shall address methods of implementing the state 
policy of developing and implementing comprehensive, 
coordinated, multidisciplinary interagency programs of early 
intervention services for children with disabilities and their 
families. 
    The duties of the council include recommending policies to 
ensure a comprehensive and coordinated system of all state and 
local agency services for children under age five with 
disabilities and their families.  The policies must address how 
to incorporate each agency's services into a unified state and 
local system of multidisciplinary assessment practices, 
individual intervention plans, comprehensive systems to find 
children in need of services, methods to improve public 
awareness, and assistance in determining the role of interagency 
early intervention committees.  
    Each year by June 1, the council shall recommend to the 
governor and the commissioners of education, health, human 
services, commerce, and jobs and training policies for a 
comprehensive and coordinated system. 
    Sec. 4.  Minnesota Statutes 1992, section 120.17, 
subdivision 11b, is amended to read: 
    Subd. 11b.  [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
DISTRICTS BOARDS.] It is the joint responsibility of county 
boards and school districts boards to coordinate, provide, and 
pay for appropriate services, and to facilitate payment for 
services from public and private sources.  Appropriate 
services for children eligible under section 120.03 must be 
determined in consultation with parents, physicians, and other 
educational, medical, health, and human services providers.  The 
services provided must be in conformity with an individual 
family service plan (IFSP) as defined in code of federal 
regulations, title 34, sections 303.340, 303.341a, and 303.344 
for each eligible infant and toddler from birth through age two 
and its family, or an individual education plan (IEP) or 
individual service plan (ISP) for each eligible child ages three 
through four.  County boards and school boards shall not be 
required to provide any services under an individual family 
service plan that are not required in an individual education 
plan or individual service plan.  Appropriate services include 
family education and counseling, home visits, occupational and 
physical therapy, speech pathology, audiology, psychological 
services, special instruction, case management including service 
coordination, medical services for diagnostic and evaluation 
purposes, early identification, and screening, assessment, and 
health services necessary to enable children with disabilities 
to benefit from early intervention services.  School districts 
must be the primary agency in this cooperative effort.  County 
and school boards shall jointly determine the primary agency in 
this cooperative effort and must notify the commissioner of 
education of their decision.  
    Sec. 5.  Minnesota Statutes 1992, section 120.17, 
subdivision 12, is amended to read: 
    Subd. 12.  [INTERAGENCY EARLY INTERVENTION COMMITTEE 
COMMITTEES.] (a) A school district, group of districts, or 
special education cooperative, in cooperation with the health 
and human service agencies located in the county or counties in 
which the district or cooperative is located, shall establish an 
interagency early intervention committee for children with a 
disability disabilities under age five and their 
families.  Members of the committee Committees shall be include 
representatives of local and regional health, education, and 
county human service agencies; county boards; school boards; 
early childhood family education programs; parents of young 
children with disabilities under age twelve; current service 
providers; parents of young children with a disability; and may 
also include representatives from other private or public 
agencies.  The committee shall elect a chair from among its 
members and shall meet at least quarterly. 
    (b) The committee shall perform develop and implement 
interagency policies and procedures concerning the following 
ongoing duties: 
    (1) identify current services and funding being provided 
within the community for children with a disability under the 
age of five and their families develop public awareness systems 
designed to inform potential recipient families of available 
programs and services; 
    (2) implement interagency child find systems designed to 
actively seek out, identify, and refer infants and young 
children with, or at risk of, disabilities and their families; 
    (3) establish and evaluate the identification, referral, 
child and family assessment systems, procedural safeguard 
process, and community learning systems to recommend, where 
necessary, alterations and improvements; 
    (3) facilitate (4) assure the development of individualized 
family service plans for all eligible infants and toddlers with 
disabilities from birth through age two, and their families, and 
individual education plans and individual service plans when 
necessary to appropriately serve children with a disability 
under the age of five disabilities, age three and older, and 
their families and recommend assignment of financial 
responsibilities to the appropriate agencies.  Agencies are 
encouraged to develop individual family service plans for 
children with disabilities, age three and older; 
    (4) (5) implement a process for assuring that services 
involve cooperating agencies at all steps leading to 
individualized programs; 
    (5) review and comment on the early intervention section of 
the total special education system for the district and the 
county social services plan; and 
    (6) facilitate the development of a transitional plan if a 
service provider is not recommended to continue to provide 
services.; 
    (7) identify the current services and funding being 
provided within the community for children with disabilities 
under age five and their families; and 
    (8) develop a plan for the allocation and expenditure of 
additional state and federal early intervention funds under 
United States Code, title 20, section 1471 et seq. (Part H, 
Public Law Number 102-119) and United States Code, title 20, 
section 631, et seq. (Chapter I, Public Law Number 89-313). 
    (c) The local committee shall also: 
    (1) participate in needs assessments and program planning 
activities conducted by local social service, health and 
education agencies for young children with disabilities and 
their families; 
    (2) review and comment on the early intervention section of 
the total special education system for the district, the county 
social service plan, the section or sections of the community 
health services plan that address needs of and service 
activities targeted to children with special health care needs, 
and the section of the maternal and child health special project 
grants that address needs of and service activities targeted to 
children with chronic illness and disabilities; and 
    (3) prepare a yearly summary on the progress of the 
community in serving young children with disabilities, and their 
families, including the expenditure of funds, the identification 
of unmet service needs identified on the individual family 
services plan and other individualized plans, and local, state, 
and federal policies impeding the implementation of this section.
    (d) The summary must be organized following a format 
prescribed by the commissioner of education and must be 
submitted to each of the local agencies and to the state 
interagency coordinating council by October 1 of each year. 
    The departments of education, health, and human 
services are encouraged to must provide assistance to the local 
agencies in developing cooperative plans for providing services. 
    Sec. 6.  Minnesota Statutes 1992, section 120.17, 
subdivision 14, is amended to read: 
    Subd. 14.  [MAINTENANCE OF EFFORT.] A county human services 
agency or county board shall continue to provide services set 
forth in their county social service agency plan for.  The 
county human services agency or county board shall serve 
children with a disability disabilities under age five, and 
their families, or as specified in the individualized family 
service plan for children with disabilities, birth through age 
two, or the individual service plan of each child.  Special 
instruction and related services for which a child with a 
disability is eligible under this section are not are the 
responsibility of the local human services agency or county 
school board.  It is the joint responsibility of county boards 
and school districts boards to coordinate, provide, and pay for 
all appropriate services not required under this section in 
subdivision 11b and to facilitate payment for services from 
public and private sources.  School districts and counties are 
encouraged to enter into agreements to cooperatively serve and 
provide funding for children with a disability under age five 
and their families.  
    Sec. 7.  Minnesota Statutes 1992, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 14a.  [LOCAL INTERAGENCY AGREEMENTS.] School boards 
and the county board may enter into agreements to cooperatively 
serve and provide funding for children with disabilities, under 
age five, and their families within a specified geographic area. 
    The local interagency agreement must address, at a minimum, 
the following issues: 
    (1) responsibilities of local agencies on local interagency 
early intervention committees (IEIC's), consistent with 
subdivision 12; 
    (2) assignment of financial responsibility for early 
intervention services; 
    (3) methods to resolve intra-agency and interagency 
disputes; 
    (4) identification of current resources and recommendations 
about the allocation of additional state and federal early 
intervention funds under the auspices of United States Code, 
title 20, section 1471 et seq. (Part H, Public Law Number 
102-119) and United State Code, title 20, section 631, et seq. 
(Chapter I, Public Law Number 89-313); 
    (5) data collection; and 
    (6) other components of the local early intervention system 
consistent with Public Law Number 102-119. 
    Sec. 8.  Minnesota Statutes 1992, section 120.17, 
subdivision 15, is amended to read: 
    Subd. 15.  [THIRD PARTY PAYMENT.] Nothing in this section 
relieves an insurer or similar third party from an otherwise 
valid obligation to pay, or changes the validity of an 
obligation to pay, for services rendered to a child with a 
disability, and the child's family.  
    Sec. 9.  Minnesota Statutes 1992, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 17.  [STATE INTERAGENCY AGREEMENT.] (a) The 
commissioners of the departments of education, health, and human 
services shall enter into an agreement to implement this section 
and Part H, Public Law Number 102-119, and as required by Code 
of Federal Regulations, title 34, section 303.523, to promote 
the development and implementation of interagency, coordinated, 
multidisciplinary state and local early childhood intervention 
service systems for serving eligible young children with 
disabilities, birth through age two, and their families.  The 
agreement must be reviewed annually. 
    (b) The state interagency agreement shall outline at a 
minimum the conditions, procedures, purposes, and 
responsibilities of the participating state and local agencies 
for the following: 
    (1) membership, roles, and responsibilities of a state 
interagency committee for the oversight of priorities and budget 
allocations under Part H, Public Law Number 102-119, and other 
state allocations for this program; 
    (2) child find; 
    (3) establishment of local interagency agreements; 
    (4) review by a state interagency committee of the 
allocation of additional state and federal early intervention 
funds by local agencies; 
    (5) fiscal responsibilities of the state and local 
agencies; 
    (6) intra-agency and interagency dispute resolution; 
    (7) payor of last resort; 
    (8) maintenance of effort; 
    (9) procedural safeguards, including mediation; 
    (10) complaint resolution; 
    (11) quality assurance; 
    (12) data collection; and 
    (13) other components of the state and local early 
intervention system consistent with Public Law Number 102-119. 
Written materials must be developed for parents, IEIC's, and 
local service providers that describe procedures developed under 
this section as required by Code of Federal Regulations, title 
34, section 303. 
    Sec. 10.  Minnesota Statutes 1992, section 124.245, 
subdivision 6, is amended to read: 
    Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The capital 
expenditure facilities aid under section 124.243 and the capital 
expenditure equipment aid under section 124.244 for districts 
must be adjusted for each pupil, excluding a pupil with a 
disability as defined in section 120.03, attending a nonresident 
district under sections 120.062, 120.075, 120.0751, 120.0752, 
124C.45 to 124C.48, and 126.22.  The adjustments must be made 
according to this subdivision. 
    (a) Aid paid to a district of the pupil's residence must be 
reduced by an amount equal to the revenue amount per actual 
pupil unit of the resident district times the number of pupil 
units of pupils enrolled in nonresident districts. 
    (b) Aid paid to a district serving nonresidents must be 
increased by an amount equal to the revenue amount per actual 
pupil unit of the nonresident district times the number of pupil 
units of nonresident pupils enrolled in the district.  
    (c) If the amount of the reduction to be made from the aid 
of a district is greater than the amount of aid otherwise due 
the district, the excess reduction must be made from other state 
aids due the district. 
    Sec. 11.  Minnesota Statutes 1992, section 124.273, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
pay a school district a portion of the salary of one full-time 
equivalent teacher for each 45 40 pupils of limited English 
proficiency enrolled in the district.  Notwithstanding the 
foregoing, the state shall pay a portion of the salary of 
one-half of a full-time equivalent teacher to a district with 22 
20 or fewer pupils of limited English proficiency enrolled.  The 
portion for a full-time teacher shall be the lesser of 55.2 
percent of the salary or $15,320.  The portion for a part-time 
or limited-time teacher shall be the lesser of 55.2 percent of 
the salary or the product of $15,320 times the ratio of the 
person's actual employment to full-time employment.  For the 
purposes of this subdivision, a teacher includes nonlicensed 
personnel who provide direct instruction to students of limited 
English proficiency under the supervision of a licensed teacher. 
    Sec. 12.  Minnesota Statutes 1992, section 124.273, is 
amended by adding a subdivision to read: 
    Subd. 2c.  [SUPPLY AND EQUIPMENT AID.] Each year the state 
shall pay a school district for supplies and equipment purchased 
or rented for use in the instruction of pupils of limited 
English proficiency an amount equal to 47 percent of the sum 
actually spent by the district but not to exceed an average of 
$47 in any one school year for each pupil of limited English 
proficiency receiving instruction. 
    Sec. 13.  Minnesota Statutes 1992, section 124.32, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] (a) Each year the state 
shall pay to a district a portion of the salary of each 
essential person employed in the district's program for children 
with a disability during the regular school year, whether the 
person is employed by one or more districts.  The state shall 
also pay to the Minnesota state academy for the deaf or the 
Minnesota state academy for the blind a part of the salary of 
each instructional aide assigned to a child attending the 
academy, if that aide is required by the child's individual 
education plan.  
    (b) For the 1991-1992 school year, the portion for a 
full-time person shall be an amount not to exceed the lesser of 
56.4 percent of the salary or $15,700.  The portion for a 
part-time or limited-time person shall be an amount not to 
exceed the lesser of 56.4 percent of the salary or the product 
of $15,700 times the ratio of the person's actual employment to 
full-time employment. 
    (c) For the 1992-1993 school year and thereafter, the 
portion for a full-time person is an amount not to exceed the 
lesser of 55.2 percent of the salary or $15,320.  The portion 
for a part-time or limited-time person is an amount not to 
exceed the lesser of 55.2 percent of the salary or the product 
of $15,320 times the ratio of the person's actual employment to 
full-time employment. 
    Sec. 14.  Minnesota Statutes 1992, section 124.32, 
subdivision 1d, is amended to read: 
    Subd. 1d.  [CONTRACT SERVICES.] For special instruction and 
services provided to any pupil by contracting with public, 
private, or voluntary agencies other than school districts, in 
place of special instruction and services provided by the 
district, the state shall pay each district 52 percent of the 
difference between the amount of the contract and the basic 
revenue of the district for that pupil for the amount of time 
fraction of the school day the pupil receives services under the 
contract.  For special instruction and services provided to any 
pupil by contracting for services with public, private, or 
voluntary agencies other than school districts, that are 
supplementary to a full educational program provided by the 
school district, the state shall pay each district 52 percent of 
the amount of the contract for that pupil. 
    Sec. 15.  Minnesota Statutes 1992, section 124.32, is 
amended by adding a subdivision to read: 
    Subd. 1f.  [ESSENTIAL PERSONNEL.] For the purposes of this 
section and section 124.321, essential personnel means teachers, 
related services and support services staff providing direct 
services to students. 
    Sec. 16.  Minnesota Statutes 1992, section 124.32, is 
amended by adding a subdivision to read: 
    Subd. 12.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
INTERMEDIATE DISTRICTS.] For purposes of this section, a special 
education cooperative or an intermediate district shall allocate 
its approved expenditures for special education programs among 
participating school districts.  Special education aid for 
services provided by a cooperative or intermediate district 
shall be paid to the participating school districts. 
    Sec. 17.  Minnesota Statutes 1992, section 124.321, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LEVY EQUALIZATION REVENUE.] Special 
education levy equalization revenue for a school district, 
excluding an intermediate school district, equals the sum of the 
following amounts: 
    (1) 66 68 percent of the 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 124.32, subdivisions 
1b and 10, for the year to which the levy is attributable, plus 
    (2) 66 68 percent of the 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 those essential personnel under section 124.574, subdivision 
2b, for the year to which the levy is attributable, plus 
    (3) 61 68 percent of the salaries paid to limited English 
proficiency program teachers in that district minus the amount 
of state aid and any federal aid, if applicable, paid to that 
district for salaries of these teachers under section 124.273, 
subdivision 1b, for the year to which the levy is attributable, 
plus 
    (4) the alternative delivery levy revenue determined 
according to section 124.321 124.322, subdivision 4, plus 
    (5) the amount allocated to the district by special 
education cooperatives or intermediate districts in which it 
participates according to subdivision 2. 
     A district that receives alternative delivery levy revenue 
according to section 124.322, subdivision 4, shall not receive 
levy equalization revenue under clause (1) or subdivision 2, 
clause (1), for the same fiscal year. 
    Sec. 18.  Minnesota Statutes 1992, section 124.321, 
subdivision 2, is amended to read: 
    Subd. 2.  [REVENUE ALLOCATION FROM COOPERATIVES AND 
INTERMEDIATE DISTRICTS.] (a) For purposes of this section, a 
special education cooperative or an intermediate district shall 
allocate to participating school districts the sum of the 
following amounts: 
    (1) 66 68 percent of the salaries paid to essential 
personnel in that cooperative or intermediate district minus the 
amount of state aid and any federal aid, if applicable, paid to 
that cooperative or intermediate district for salaries of these 
essential personnel under section 124.32, subdivisions 1b and 
10, for the year to which the levy is attributable, plus 
    (2) 66 68 percent of the 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 those essential personnel under section 124.574, subdivision 
2b, for the year to which the levy is attributable, plus 
    (3) 61 68 percent of the salaries paid to limited English 
proficiency program teachers in that cooperative or intermediate 
district minus the amount of state aid and any federal aid, if 
applicable, paid to that cooperative or intermediate district 
for salaries of these teachers under section 124.273, 
subdivision 1b, for the year to which the levy is attributable. 
    (b) A special education cooperative or an intermediate 
district that allocates amounts to participating school 
districts under this subdivision must report the amounts 
allocated to the department of education. 
    (c) For purposes of this subdivision, the Minnesota state 
academy for the deaf or the Minnesota state academy for the 
blind each year shall allocate an amount equal to 66 68 percent 
of salaries paid to instructional aides in either academy minus 
the amount of state aid and any federal aid, if applicable, paid 
to either academy for salaries of these instructional aides 
under sections 124.32, subdivisions 1b and 10, for the year to 
each school district that assigns a child with an individual 
education plan requiring an instructional aide to attend either 
academy.  The school districts that assign a child who requires 
an instructional aide may make a levy in the amount of the costs 
allocated to them by either academy. 
    (d) When the Minnesota state academy for the deaf or the 
Minnesota state academy for the blind allocates unreimbursed 
portions of salaries of instructional aides among school 
districts that assign a child who requires an instructional 
aide, for purposes of the districts making a levy under this 
subdivision, the academy shall provide information to the 
department of education on the amount of unreimbursed costs of 
salaries it allocated to the school districts that assign a 
child who requires an instructional aide. 
    Sec. 19.  Minnesota Statutes 1992, section 124.322, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [DEFINITIONS.] In this section, the definitions 
in this subdivision apply. 
    (a) "Base revenue" means the following: 
    (1) for the first fiscal year after approval of the 
district's application, base revenue means the sum of the 
district's revenue for the preceding fiscal year for its special 
education program under sections 124.32, subdivisions 1b, 1d, 2, 
5, and 10, and 124.321, subdivision 1; 
    (2) for the second fiscal year after approval of a 
district's application, base revenue means the sum of the 
district's revenue for the second prior fiscal year for its 
special education program under sections 124.32, subdivisions 
1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and 
    (3) for the third fiscal year after approval of a 
district's application, and thereafter, base revenue means the 
sum of the revenue a district would have been entitled to in the 
second prior fiscal year for its special education program under 
sections 124.32, subdivisions 1b, 1d, 2, 5, and 10, and 124.321, 
subdivision 1, based on activities defined as reimbursable under 
state board rules for special education and nonspecial education 
students, and additional activities as detailed and approved by 
the commissioner of education. 
    (b) "Base aid" means the following: 
    (1) for the first fiscal year after approval of a 
district's application, base aid means the sum of the district's 
gross aid for the preceding fiscal year for its special 
education program under section 124.32, subdivisions 1b, 1d, 2, 
5, and 10; 
    (2) for the second fiscal year after approval of a 
district's application, base aid means the sum of the district's 
gross aid for the second prior fiscal year for its special 
education program under section 124.32, subdivisions 1b, 1d, 2, 
5, and 10; and 
    (3) for the third fiscal year after approval of a 
district's application and thereafter, base aid means the sum of 
the gross aid the district would have been entitled to in the 
second prior fiscal year for its special education program under 
section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
activities defined as reimbursable under state board of 
education rules for special education and nonspecial education 
students, and additional activities as detailed and approved by 
the commissioner of education in the application plan. 
    (c) Notwithstanding paragraphs (a) and (b), base revenue 
and base aid for 1995 and later fiscal years must not include 
revenue and aid under section 124.32, subdivision 5. 
     (d) "Alternative delivery revenue inflator" means: 
    (1) For the first fiscal year after approval of a 
district's application, the greater of 1.017 or the ratio of (i) 
the statewide average special education revenue under sections 
124.32 and 124.321 per pupil in average daily membership for the 
current fiscal year, to (ii) the statewide average special 
education revenue per pupil in average daily membership for the 
previous fiscal year. 
    (2) For the second and later fiscal years, the greater of 
1.034 or the ratio of (i) the statewide average special 
education revenue under sections 124.32 and 124.321 per pupil in 
average daily membership for the current fiscal year, to (ii) 
the statewide average special education revenue per pupil in 
average daily membership for the second prior fiscal year. 
    (e) The commissioner of education shall adjust each 
district's base revenue and base aid to reflect any changes in 
special education services required by rule or statute.  
    Sec. 20.  Minnesota Statutes 1992, section 124.322, 
subdivision 2, is amended to read: 
    Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
first fiscal year after approval of an application, a district 
shall receive the sum of the revenue it received for the 
preceding fiscal year for its special education program under 
section 124.32, subdivisions 1b, 2, 5, and 10, and Minnesota 
Statutes 1990, section 275.125, subdivision 8c, or section 
124.321, subdivisions 1 and 2, as applicable, district's 
alternative delivery revenue equals its base revenue multiplied 
by 1.03 the product of the alternative delivery revenue inflator 
times the ratio of the district's average daily membership for 
the current fiscal year to the district's average daily 
membership for the immediately preceding fiscal year.  For each 
of the next two fiscal years, the district shall receive the 
amount it received for the previous fiscal year multiplied by 
1.03.  For the second and later fiscal years a district's 
alternative delivery revenue equals its base revenue multiplied 
by the product of the alternative delivery revenue inflator 
times the ratio of the district's average daily membership for 
the current fiscal year to the district's average daily 
membership for the second preceding fiscal year. 
    Sec. 21.  Minnesota Statutes 1992, section 124.322, 
subdivision 3, is amended to read: 
    Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
year after approval of an application, a district shall receive 
the sum of the aid it received for the preceding fiscal year 
under section 124.32, subdivisions 1b, 2, 5, and 10, district's 
alternative delivery aid equals its base aid multiplied by 1.03 
the product of 1.017 times the ratio of the district's average 
daily membership for the current fiscal year to the district's 
average daily membership for the preceding fiscal year.  For the 
second and later fiscal years a district's alternative delivery 
aid equals its base aid multiplied by the product of 1.034 times 
the ratio of the district's average daily membership for the 
current fiscal year to the district's average daily membership 
for the second preceding fiscal year.  The aid for the first 
year of revenue shall not be prorated.  For each of the next two 
fiscal years, the district shall receive the amount of aid it 
received for the previous fiscal year multiplied by 1.03.  A 
district that receives aid under this subdivision shall not 
receive aid under section 124.32, subdivisions 1b, 1d, 2, 5, and 
10, for the same fiscal year. 
    Sec. 22.  Minnesota Statutes 1992, section 124.322, 
subdivision 4, is amended to read: 
    Subd. 4.  [ALTERNATIVE DELIVERY LEVY REVENUE.] A district 
shall receive alternative delivery levy revenue equal to the 
difference between the alternative delivery revenue and the 
alternative delivery aid.  If the alternative delivery aid for a 
district is prorated for the second or third fiscal years, the 
alternative delivery levy revenue shall be increased by the 
amount not paid by the state due to proration.  For fiscal year 
1993 and thereafter, The alternative delivery levy revenue shall 
be included under section 124.321, subdivision 1, for purposes 
of computing the special education levy under section 124.321, 
subdivision 3, and the special education levy equalization aid 
under section 124.321, subdivision 4. 
    Sec. 23.  [124.323] [SPECIAL EDUCATION EXCESS COST AID.] 
    Subdivision 1.  [DEFINITIONS.] In this section, the 
definitions in this subdivision apply. 
    (a) "Unreimbursed special education cost" means the sum of 
the following: 
    (1) expenditures for teachers' salaries, contracted 
services, supplies, and equipment eligible for revenue under 
sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
subdivision 2; plus 
    (2) expenditures for tuition bills received under section 
120.17; minus 
    (3) revenue for teachers' salaries, contracted services, 
supplies, and equipment under sections 124.32, subdivisions 1b, 
1d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322, 
subdivision 2; minus 
    (4) tuition receipts under section 120.17. 
    (b) "General revenue" means the sum of the general 
education revenue according to section 124A.22, subdivision 1, 
plus the total referendum revenue according to section 124A.03, 
subdivision 1e. 
    Subd. 2.  [EXCESS COST AID.] For 1995 and later fiscal 
years, a district's special education excess cost aid equals the 
product of: 
    (1) 70 percent of the difference between (i) the district's 
unreimbursed special education cost per actual pupil unit and 
(ii) six percent of the district's general revenue per actual 
pupil unit, times 
    (2) the district's actual pupil units for that year. 
    Sec. 24.  Minnesota Statutes 1992, section 124.573, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SECONDARY VOCATIONAL AID.] A district's or 
cooperative center's "secondary vocational aid" for secondary 
vocational education programs for a fiscal year equals the sum 
of the following amounts for each program: 
    (a) the greater of zero, or 75 percent of the difference 
between:  
    (1) the salaries paid to essential, licensed personnel in 
that school year for services rendered in that program, and 
    (2) 50 percent of the general education revenue 
attributable to secondary pupils for the number of hours that 
the pupils are enrolled in that program; and 
    (b) 40 percent of approved expenditures for the following: 
    (1) salaries paid to essential, licensed personnel 
providing direct instructional services to students in that 
fiscal year for services rendered in the district's approved 
secondary vocational education programs; 
    (2) contracted services provided by a public or private 
agency other than a Minnesota school district or cooperative 
center under subdivision 3a; 
    (2) (3) necessary travel between instructional sites by 
licensed secondary vocational education personnel; 
    (3) (4) necessary travel by licensed secondary vocational 
education personnel for vocational student organization 
activities held within the state for instructional purposes; 
    (4) (5) curriculum development activities that are part of 
a five-year plan for improvement based on program assessment; 
    (5) (6) necessary travel by licensed secondary vocational 
education personnel for noncollegiate credit bearing 
professional development; and 
    (6) (7) specialized vocational instructional supplies. 
    Sec. 25.  Minnesota Statutes 1992, section 124.573, is 
amended by adding a subdivision to read: 
    Subd. 2e.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
INTERMEDIATE DISTRICTS.] For purposes of subdivision 2b, 
paragraph (b), a cooperative center or an intermediate district 
shall allocate its approved expenditures for secondary 
vocational education programs among participating school 
districts. 
    Sec. 26.  Minnesota Statutes 1992, section 124.574, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SALARIES.] (a) Each year the state shall pay to 
any district or cooperative center a portion of the salary of 
each essential licensed person who provides direct instructional 
services to students, employed during that fiscal year for 
services rendered in that district or center's district's 
secondary vocational education programs for children with a 
disability. 
    (a) For fiscal year 1992, the portion for a full-time 
person shall be an amount not to exceed the lesser of 56.4 
percent of the salary or $15,700.  The portion for a part-time 
or limited-time person shall be the lesser of 56.4 percent of 
the salary or the product of $15,700 times the ratio of the 
person's actual employment to full-time employment.  
    (b) For fiscal year 1993 and thereafter, the portion for a 
full-time person is an amount not to exceed the lesser of 55.2 
percent of the salary or $15,320.  The portion for a part-time 
or limited-time person is the lesser of 55.2 percent of the 
salary or the product of $15,320 times the ratio of the person's 
actual employment to full-time employment. 
    Sec. 27.  Minnesota Statutes 1992, section 124.574, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [ADDITIONAL AID.] A school district may contract 
with another Minnesota school district or cooperative center for 
vocational evaluation services for children with a disability 
for children that are not yet enrolled in grade 12.  The state 
shall pay the school district an amount equal to 52 percent of 
the amount of the contract for that pupil.  The contracts must 
be approved by the commissioner. 
    Sec. 28.  Minnesota Statutes 1992, section 124.574, is 
amended by adding a subdivision to read: 
    Subd. 9.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
INTERMEDIATE DISTRICTS.] For purposes of this section, a 
cooperative center or an intermediate district shall allocate 
its approved expenditures for secondary vocational programs for 
children with a disability among participating school 
districts.  Aid for secondary vocational programs for children 
with a disability for services provided by a cooperative or 
intermediate district shall be paid to the participating school 
districts. 
    Sec. 29.  Minnesota Statutes 1992, 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 pupil with a disability as defined in section 120.03 
or a pupil without a disability as defined by section 120.181, 
attending a nonresident district under sections 120.062, 
120.075, 120.0751, 120.0752, 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 
pupil with a disability, 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 general education aid, 
the amount of capital expenditure facilities aid and capital 
expenditure equipment aid received under section 124.245, 
subdivision 6, and 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 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 pupil, or the actual cost of providing the 
instruction, excluding transportation costs, if the pupil meets 
the requirements of section 120.03 or 120.181. 
    Sec. 30.  Minnesota Statutes 1992, section 125.189, is 
amended to read: 
    125.189 [LICENSURE REQUIREMENTS.] 
    In addition to other requirements, The board of teaching 
will review and determine appropriate licensure requirements for 
a candidate for a license or an applicant for a continuing 
license to teach hearing-impaired deaf and hard of hearing 
students in kindergarten prekindergarten through grade 12.  In 
addition to other requirements, a candidate must demonstrate the 
minimum level of proficiency in American sign language as 
determined by the Quality Assurance Systems Project of the 
department of education board.  
    Sec. 31.  Minnesota Statutes 1992, section 128B.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [EXTENSION.] This chapter is repealed July 
1, 1993 1995. 
    Sec. 32.  [ASL GUIDELINES.] 
    (a) In determining appropriate licensure requirements for 
teachers of deaf and hard of hearing students under Minnesota 
Statutes, section 125.189, the board of teaching shall develop 
the requirements according to the guidelines described in this 
section. 
    (b) Each teacher must complete the American sign language 
sign communication proficiency interview or a comparable 
American sign language evaluation that the board of teaching, 
the Minnesota association of deaf citizens, and the Minnesota 
council for the hearing impaired accept as a means for 
establishing the teacher's baseline level of American sign 
language skills.  A teacher shall not be charged for this 
evaluation. 
    (c) Each teacher must complete 60 continuing education 
credits in American sign language, American sign language 
linguistics, or deaf culture for every 120 continuing education 
credits the teacher is required to complete to renew a teaching 
license. 
    (d) As a condition of obtaining an initial license to teach 
deaf and hard of hearing students, a person must demonstrate in 
the sign communication proficiency interview an intermediate 
plus level of proficiency in American sign language. 
    (e) Each teacher applying to renew a teaching license and 
each teacher holding a teaching license from another state who 
wishes to apply for a Minnesota teaching license must take the 
American sign language sign communication proficiency interview 
or a comparable American sign language evaluation every five 
years until the teacher demonstrates a minimum, or survival 
plus, level of proficiency in American sign language. 
    (f) A teacher working directly with students whose primary 
language is American sign language should demonstrate at least 
an advanced level of proficiency in American sign language.  The 
board should not consider a minimum, or survival plus, level of 
proficiency adequate for providing direct instruction to 
students whose primary language is American sign language. 
    (g) To renew a teaching license, a teacher must comply with 
paragraphs (c) and (e) in addition to other applicable board 
requirements.  A teacher's ability to demonstrate a minimum, or 
survival plus, level of proficiency in American sign language is 
not a condition for renewing the teacher's license. 
    (h) A teacher who demonstrates an increased proficiency in 
American sign language skill in the American sign language sign 
communication proficiency interview or a comparable American 
sign language evaluation shall receive credit toward completing 
the requirements of paragraph (c).  The number of continuing 
education credits the teacher receives is based on the teacher's 
increased level of proficiency from the teacher's baseline level:
    (1) 35 continuing education credits for demonstrating an 
intermediate level of proficiency; 
    (2) 40 continuing education credits for demonstrating an 
intermediate plus level of proficiency; 
    (3) 45 continuing education credits for demonstrating an 
advanced level of proficiency; 
    (4) 50 continuing education credits for demonstrating an 
advanced plus level of proficiency; 
    (5) 55 continuing education credits for demonstrating a 
superior level of proficiency; and 
    (6) 60 continuing education credits for demonstrating a 
superior plus level of proficiency. 
     Sec. 33.  [DEVELOPING GREATER FLEXIBILITY IN DELIVERING 
SPECIAL EDUCATION SERVICES.] 
    Subdivision 1.  [PURPOSE; AUTHORIZATION.] In an effort to 
change the overall emphasis in special education from complying 
with laws and rules to also improving educational opportunities 
for a wide range of students, including those who are disabled, 
those for whom English is a second language, and those with 
unique learning styles, a pilot project is established to permit 
independent school district No. 625, St. Paul, to develop and 
implement an integrated service model for delivering special 
education services and programs to eligible students under 
Minnesota Statutes, section 120.17, and alternative delivery of 
specialized instructional services under Minnesota Statutes, 
section 120.173.  As part of the pilot project, the state board 
of education shall waive those state special education rules the 
district includes in its approved plan to implement the 
integrated service model if the district complies with the 
requirements in subdivision 2.  In developing and implementing 
the integrated service model, the district must adhere to the 
intent of each rule for which it seeks a waiver and the 
procedural and substantive protections afforded eligible and 
low-performing students under law.  Nothing in this section 
shall be construed to permit the waiver of any provision 
required under federal law. 
    Subd. 2.  [PROJECT REQUIREMENTS.] (a) To participate in the 
pilot project, the district must: 
    (1) notify the commissioner of education, the state board 
of education, and the advisory council under paragraph (c) by 
June 15, 1993, of its intent to develop and implement an 
integrated service model for delivering special education 
services and programs to eligible and low-performing students 
that complies with all applicable federal rules and the outcomes 
of all state rules governing the delivery of special education; 
    (2) complete by November 30, 1993, with assistance from the 
commissioner as described in paragraph (b) and the advisory 
council in paragraph (c), a proposed plan for realizing an 
integrated service model, which includes a description of each 
applicable federal and state rule and the approach the district 
will use to effect that rule; 
    (3) include in the proposed plan measures to protect 
students' civil rights, provide equal educational opportunities, 
and prohibit discrimination as required under state and federal 
law; 
    (4) receive approval from the advisory council in paragraph 
(c) and the local school board for the proposed plan by December 
31, 1993, and file a copy of the approved plan with the 
commissioner; 
    (5) begin in-service training of district personnel on 
February 1, 1994, to ensure that the district complies with all 
applicable federal regulations governing the delivery of special 
education; and 
    (6) implement the integrated service model beginning July 
1, 1994. 
    (b) If the St. Paul school district indicates its intent to 
develop an integrated service model under paragraph (a), clause 
(1), the commissioner shall assist the district beginning August 
1, 1993, in developing its plan to realize the integrated 
service model by: 
    (1) providing technical assistance through the state 
department of education; and 
    (2) using discretionary funds under Public Law Number 
101-476 to contract for technical assistance as needed. 
    (c) The district must establish an advisory council for the 
pilot project that reflects the demographic composition of the 
district and is composed of members of existing special 
education-related committees, parents of eligible students with 
varying disabilities and of different ages enrolled in the 
district, one local representative of advocacy agencies, and 
district personnel affected by this section.  Parents shall 
compose the majority of council members.  The district must 
continuously consult with the advisory council on planning, 
delivering, and modifying the district's special education 
programs and services. 
    (d) The district shall not seek a variance to a special 
education rule from the state board of education under Minnesota 
Statutes, section 121.11, subdivision 12, during the term of the 
project.  This prohibition does not include any rule waived 
under subdivision 1. 
    Subd. 3.  [EVALUATION.] Upon implementing the integrated 
service model, the district, with technical assistance provided 
or contracted for by the commissioner, must annually evaluate 
the programmatic outcomes and financial efficiency of the model 
over at least a four-year period.  The district must address in 
its evaluation the seven points listed in Minnesota Statutes, 
section 120.173, subdivision 3, and document parents' responses 
to the model.  The district must submit to the education 
committees of the legislature a progress report by February 1, 
1997, and a final report by February 1, 1999, on the efficacy of 
the model. 
    Sec. 34.  [FISCAL REPORTS; AUTHORIZATION REQUIRED.] 
    (a) The commissioner of education shall contract with an 
independent consultant outside of state or local government for 
a study of the short- and long-term fiscal impact to state and 
local governments of providing a comprehensive and coordinated 
system of services to infants and young children with 
disabilities, from birth to age two, and their families under 
United States Code, title 20, sections 1471 through 1485.  The 
commissioner shall submit a report on the results of the study 
to the education committees of the legislature by January 15, 
1994.  At a minimum, the study shall include an estimate of the 
number of infants and young children from birth to age two 
eligible for services through the year 2000; the estimated 
average cost for services per eligible child and the child's 
family; the anticipated total additional annual cost to state 
and local governments through the year 2000 of fully 
implementing year 5 services; the anticipated amount of 
additional federal early intervention funds available to the 
state under United States Code, title 20, section 1471 et. seq., 
and United States Code, title 20, section 631 et seq.; what 
definition of eligibility the education department proposes to 
adopt; what the major components affecting the costs of 
participation will be; the estimated costs of intake, 
evaluation, assessment, monitoring, and program planning through 
the year 2000 for a fully implemented year 5 program; the 
estimated costs of child find, public awareness, complaints and 
due process procedures, data management information systems, 
state level supervision and monitoring, interagency 
collaboration, local planning and coordination, technical 
assistance, personnel standards and development, and surrogate 
parent programs for a fully implemented year 5 program; and an 
inventory of current expenditures by county boards, school 
boards, and other local services providers for services provided 
under Minnesota Statutes, section 120.17, subdivision 11b, 
including social work, nursing, nutrition, vision, and 
transportation services, assistive technology, parent-to-parent 
support, and respite care.  The cost of the contract shall not 
exceed $75,000 and shall be paid for from revenue received from 
federal grants for regular special education central 
administration and state initiated discretionary projects. 
    (b) The state department of education may not apply to the 
secretary of education under United States Code, title 20, 
section 1471, et seq. (Part H, Public Law Number 102-119) to 
participate in the fifth or any succeeding fiscal year of the 
federal Part H program contained in the Individuals with 
Disabilities Education Act until specifically authorized by law 
to do so or until after April 1, 1994, whichever comes first.  
    Sec. 35.  [TASK FORCE ON EDUCATION FOR CHILDREN WITH 
DISABILITIES.] 
    Subdivision 1.  [ESTABLISHMENT.] A task force to review the 
state's special education rules is established to recommend to 
the legislature changes that can be made to simplify the rules 
while ensuring that the rules meet applicable federal 
requirements and support the state's interest in education 
outcomes. 
    Subd. 2.  [MEMBERSHIP.] The task force on education for 
children with disabilities consists of 15 members appointed by 
the commissioner of education.  The membership shall include 
parents of children with disabilities, students with 
disabilities, special education teachers and general education 
teachers, school administrators, special education directors, 
representatives of higher education, representatives of advocacy 
organizations for children with disabilities, and no more than 
one representative of state government.  At least five members 
shall be parents of children with disabilities or 
representatives of advocacy groups.  One member shall be a 
student with a disability. 
    Subd. 3.  [DUTIES.] The task force established under 
subdivisions 1 and 2 shall review the educational needs of 
children with disabilities and the current system of services, 
including the state and federal regulatory scheme and associated 
costs, and recommend ways to remove barriers to effective 
education and improve measurable learner outcomes.  The task 
force shall make recommendations to: 
    (1) reduce paperwork and other administrative burdens on 
classroom teachers to increase the amount of time they spend 
educating students; 
    (2) improve access to effective education for children with 
disabilities by increased coordination of special and general 
education services, including staff development programs; 
    (3) assure that education for children with disabilities is 
outcome-based while maintaining due process protections for 
students and their families; 
    (4) eliminate duplication in the regulatory scheme; and 
    (5) state the outcomes of the state's special education 
rules. 
    Subd. 4.  [STAFF SUPPORT.] The department of education and 
any other state agency shall provide information and other 
assistance requested by the task force. 
    Subd. 5.  [ADMINISTRATIVE RULES.] To accommodate the task 
force's review of the state's special education rules, and 
notwithstanding Minnesota Statutes, section 121.11, subdivision 
12, or any other law to the contrary, the state board of 
education shall not adopt, amend, or repeal a special education 
rule until June 1, 1994, unless compelled by a newly enacted or 
adopted federal requirement. 
    Subd. 6.  [REPORT.] The task force shall submit its 
recommendations for simplifying the state's special education 
rules to the education committees of the legislature by February 
1, 1994. 
    Sec. 36.  [ALTERNATIVE DELIVERY OF SPECIAL EDUCATION 
SERVICES AND PROGRAMS.] 
    Subdivision 1.  [ESTABLISHMENT; PURPOSE; GOAL.] A 
three-year pilot project is established to permit 11 school 
districts and one rural special education cooperative selected 
by the commissioner of education to use an alternative process 
for delivering certain special education services and programs 
to eligible students under Minnesota Statutes, section 120.17.  
The purpose of the project is to explore, in a deliberate way, 
effective alternatives to the special education rules listed in 
subdivision 3 while adhering to the intent of the rules and the 
procedural and substantive protections afforded eligible 
students under law.  The ultimate goal of the project is to 
improve the instructional services and educational outcomes and 
opportunities available to eligible students and the cost 
effectiveness of the services and programs.  Nothing in this 
section shall be construed to permit the waiver of any provision 
required under federal law.  
    Subd. 2.  [ELIGIBILITY; APPLICATIONS.] (a) The commissioner 
shall make application forms available to school districts 
interested in exploring effective alternatives for delivering 
certain special education services and programs as described in 
this section.  Interested school districts must have their 
application to participate in the project approved by their 
local school board after a public hearing on the matter.  
Applications must be submitted to the commissioner by January 1, 
1995.  The application must describe how the applicant proposes 
to realize the purpose and goal of the project, including what 
activities and procedures the applicant proposes and whether the 
applicant seeks to be exempted from Minnesota Rules, part 
3525.1341.  The commissioner may require additional information 
of an applicant.  The commissioner shall approve 12 applications 
before March 1, 1995.  The commissioner shall ensure an 
equitable geographical distribution of project participants 
throughout the state.  
    (b) The commissioner shall make available to school 
districts interested in applying to participate in the project 
discretionary funds under Public Law Number 101-476 to allow the 
districts to cover the costs of convening their advisory council 
members under subdivision 6 to assist in developing an 
application under this subdivision. 
    Subd. 3.  [EXEMPTIONS.] (a) All school districts 
participating in the project are exempt from the following 
special education rules through the 1997-1998 school year: 
    (1) Minnesota Rules, part 3525.1335; 
    (2) Minnesota Rules, part 3525.2335; 
    (3) Minnesota Rules, part 3525.2750; and 
    (4) Minnesota Rules, part 3525.2925, subparts 2, item B, 4, 
5, 6, 7, and 9. 
    (b) After reviewing the applications of the district 
selected to participate in the project, the commissioner shall 
exempt six of the 12 project participants from Minnesota Rules, 
part 3525.1341. 
    (c) During the term of the project, participating school 
districts exempt from the rules listed in this subdivision must 
adhere to the intent of the rules and the procedural and 
substantive safeguards afforded eligible students under the law. 
    (d) School districts participating in the pilot projects 
shall not seek a variance to a special education rule from the 
state board of education under Minnesota Statutes, section 
121.11, subdivision 12, during the term of the project.  This 
prohibition does not include the rules listed in subdivision 3. 
    Subd. 4.  [STUDENTS' RIGHTS.] School districts 
participating in the project must individually evaluate eligible 
students enrolled in the district to determine the students' 
levels of performance.  Eligible students are entitled to the 
procedural protections provided under Public Law Number 101-476 
in any matter that affects the students' identification, 
evaluation, placement, or change in placement, and protections 
provided under Minnesota Statutes, sections 127.26 to 127.39, in 
a dismissal proceeding that may result in students' suspension, 
exclusion, or expulsion.  Participating school districts must 
ensure the protection of students' civil rights, provide equal 
educational opportunities, and prohibit discrimination.  Failure 
to comply with this subdivision will at least cause a district 
to become ineligible to participate in the project. 
    Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner, through 
the office of compliance and monitoring, shall provide technical 
assistance to the project participants.  In addition, the 
commissioner shall use discretionary funds available under 
Public Law Number 101-476 to contract for technical assistance 
from an independent evaluator in the field of special education 
to assist project participants in developing and implementing a 
valid and uniform procedure to evaluate their alternative 
delivery process. 
    Subd. 6.  [ADVISORY COMMITTEE.] Each project participant 
shall have an advisory council that reflects the demographic 
composition of the local community and is composed of members of 
existing special education-related committees, parents of 
eligible students with varying disabilities and of different 
ages enrolled in a participating district, one local 
representative of advocacy organizations, and district personnel 
in the field of special education who are potentially affected 
by the rule exemptions under subdivision 3.  Participants that 
are exempt, or school districts seeking to be exempt under 
subdivision 2, paragraph (b), from Minnesota Rules, part 
3525.1314, must include on the council either a parent of a 
student with a specific learning disability or a local 
representative of an organization that advocates on behalf of 
students with specific learning disabilities.  Parents shall 
compose a majority of council members.  The council shall advise 
the district on planning, delivering, and modifying special 
education programs and services under this section.  The council 
must approve the district's application to participate in the 
project before it is submitted to the local school board for 
approval under subdivision 2.  If a project participant is 
unable to have members of existing special education-related 
committees on the council, it shall include on the council 
additional parents of eligible students. 
    Subd. 7.  [EVALUATION; REPORT.] (a) The commissioner shall 
use the discretionary funds available under Public Law Number 
101-476 to contract with an independent evaluator for technical 
assistance to develop a uniform evaluation procedure for all 
participants to use to complete a formative and summative 
evaluation of their experiences in delivering special education 
services and programs under this section.  Participants shall 
work with the independent evaluator to focus the evaluation on 
the overall efficacy of the alternative delivery process, 
including the extent to which the educational outcomes and 
opportunities of eligible students are improved.  The evaluation 
must include a mechanism for documenting parents' responses to 
the project.  Project participants shall each select one member 
of their advisory council to meet together periodically with the 
independent evaluator to evaluate the participants' progress.  
Project participants, in consultation with their advisory 
council, shall use the interim evaluations and the responses of 
affected parents to the alternative delivery process to modify 
the process where appropriate. 
    (b) Each project participant shall submit to the 
commissioner a progress report by September 1, 1996, and a final 
report by January 1, 1998, evaluating the cost effectiveness of 
the services and programs of its alternative delivery process.  
The commissioner shall compile the results of the reports to 
present to the education committees of the legislature by March 
1, 1998.  When presenting the reports, the commissioner, after 
consulting with the independent evaluator, shall recommend 
appropriate amendments to the rules listed in subdivision 3. 
    Sec. 37.  [REALLOCATION.] 
    Any funds saved through the flexibility in special 
education service delivery authorized by this article must be 
reallocated by the district for the benefit of students with 
special education needs in the district. 
    Sec. 38.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
or other named fund to the department of education for the 
fiscal years designated. 
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid according to Minnesota Statutes, section 124.32: 
     $176,257,000     .....     1994 
     $186,649,000     .....     1995 
    The 1994 appropriation includes $25,087,000 for 1993 and 
$151,170,000 for 1994.  
    The 1995 appropriation includes $26,677,000 for 1994 and 
$159,972,000 for 1995.  
    Subd. 3.  [SPECIAL PUPIL AID.] For special education aid 
according to Minnesota Statutes, section 124.32, subdivision 6, 
for pupils with handicaps placed in residential facilities 
within the district boundaries for whom no district of residence 
can be determined: 
     $318,000     .....     1994 
     $337,000     .....     1995 
    If the appropriation for either year is insufficient, the 
appropriation for the other year is available.  If the 
appropriations for both years are insufficient, the 
appropriation for special education aid may be used to meet the 
special pupil obligations. 
    Subd. 4.  [SUMMER SPECIAL EDUCATION AID.] For special 
education summer program aid according to Minnesota Statutes, 
section 124.32, subdivision 10: 
     $4,472,000     .....     1994
     $4,530,000     .....     1995 
    The 1994 appropriation is for 1993 summer programs.  
    The 1995 appropriation is for 1994 summer programs.  
    Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
teacher travel for home-based services according to Minnesota 
Statutes, section 124.32, subdivision 2b: 
     $124,000       .....     1994 
     $159,000       .....     1995 
    The 1994 appropriation includes $10,000 for 1993 and 
$114,000 for 1994.  
    The 1995 appropriation includes $19,000 for 1994 and 
$140,000 for 1995.  
    Subd. 6.  [RESIDENTIAL FACILITIES AID.] For residential 
facilities aid under Minnesota Statutes, section 124.32, 
subdivision 5: 
     $2,616,000     .....     1994 
     $.. -0- ..     .....     1995 
    Subd. 7.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
cost aid according to Minnesota Statutes, section 124.322: 
     $..-0-..       .....     1994 
     $5,555,000     .....     1995 
    The 1995 appropriation includes $..-0-.. for 1994 and 
$5,555,000 for 1995.  
    Subd. 8.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
For aid to educational programs for pupils of limited English 
proficiency according to Minnesota Statutes, section 124.273: 
     $5,529,000     .....     1994 
     $6,228,000     .....     1995 
    The 1994 appropriation includes $600,000 for 1993 and 
$4,929,000 for 1994.  
    The 1995 appropriation includes $870,000 for 1994 and 
$5,358,000 for 1995.  
    $106,000 in fiscal year 1994 and $124,000 in fiscal year 
1995 are for supplies and equipment for limited English 
proficiency instruction according to section 12. 
    Subd. 9.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
GRANTS.] For American Indian post-secondary preparation grants 
according to Minnesota Statutes, section 124.481: 
     $857,000       .....     1994
     $857,000       .....     1995
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 10.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
For grants to American Indian language and culture education 
programs according to Minnesota Statutes, section 126.54, 
subdivision 1: 
     $591,000       .....     1994
     $591,000       .....     1995
    The 1994 appropriation includes $88,000 for 1993 and 
$503,000 for 1994.  
    The 1995 appropriation includes $88,000 for 1994 and 
$503,000 for 1995.  
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 11.  [SECONDARY VOCATIONAL; STUDENTS WITH 
DISABILITIES.] For aid for secondary vocational education for 
pupils with disabilities according to Minnesota Statutes, 
section 124.574: 
     $4,015,000     .....     1994 
     $3,933,000     .....     1995 
    The 1994 appropriation includes $684,000 for 1993 and 
$3,331,000 for 1994.  
    The 1995 appropriation includes $588,000 for 1994 and 
$3,345,000 for 1995.  
    Subd. 12.  [ASSURANCE OF MASTERY.] For assurance of mastery 
aid according to Minnesota Statutes, section 124.311: 
     $12,949,000    .....     1994 
     $13,163,000    .....     1995 
    The 1994 appropriation includes $1,904,000 for 1993 and 
$11,045,000 for 1994.  
    The 1995 appropriation includes $1,948,000 for 1994 and 
$11,215,000 for 1995.  
    Subd. 13.  [INDIVIDUALIZED LEARNING AND DEVELOPMENT AID.] 
For individualized learning and development aid according to 
Minnesota Statutes, section 124.331: 
     $2,485,000      .....     1994
    The 1994 appropriation includes $2,485,000 for 1993.  
    Subd. 14.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
education levy equalization aid according to Minnesota Statutes, 
section 124.321: 
     $14,210,000    .....     1994
     $16,867,000    .....     1995
    The 1994 appropriation includes $1,626,000 for 1993 and 
$12,584,000 for 1994.  
    The 1995 appropriation includes $2,221,000 for 1994 and 
$14,646,000 for 1995. 
    Subd. 15.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
Indian scholarships according to Minnesota Statutes, section 
124.48: 
     $1,600,000     .....     1994 
     $1,600,000     .....     1995 
    Any unexpended balance remaining in the first year does not 
cancel but is available in the second year. 
    Subd. 16.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
American Indian education programs in school districts: 
     $175,000       .....     1994 
     $175,000       .....     1995 
    The 1994 appropriation includes $26,000 for 1993 and 
$149,000 for 1994.  
    The 1994 appropriation includes $26,000 for 1994 and 
$149,000 for 1995.  
    (b) These appropriations are available for expenditure with 
the approval of the commissioner of the department of education. 
    (c) The commissioner must not approve the payment of any 
amount to a school district or school under this subdivision 
unless that school district or school is in compliance with all 
applicable laws of this state. 
    (d) Up to the following amounts may be distributed to the 
following schools and school districts for each fiscal year:  
$54,800 to Pine Point School; $9,700 to independent school 
district No. 166; $14,900 to independent school district No. 
432; $14,100 to independent school district No. 435; $42,200 to 
independent school district No. 707; and $39,100 to independent 
school district No. 38.  These amounts must be spent only for 
the benefit of American Indian pupils and to meet established 
state educational standards or statewide requirements. 
    (e) Before a district or school can receive money under 
this subdivision, the district or school must submit, to the 
commissioner, evidence that it has complied with the uniform 
financial accounting and reporting standards act, Minnesota 
Statutes, sections 121.90 to 121.917. 
    Subd. 17.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
joint grants to assist Indian people to become teachers: 
     $190,000     .....     1994 
     $190,000     .....     1995 
    (b) Initially, $70,000 each year is for a joint grant to 
the University of Minnesota at Duluth and the Duluth school 
district. 
    (c) Initially, $40,000 each year is for a joint grant to 
each of the following: 
    (1) Bemidji state university and the Red Lake school 
district; 
    (2) Moorhead state university and a school district located 
within the White Earth reservation; and 
    (3) Augsburg college and the Minneapolis school district. 
    (d) Money not used for students at one location may be 
transferred for use at another location. 
    (e) Any unexpended balance remaining the first year does 
not cancel but is available in the second year. 
    Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
school aid according to Minnesota Statutes, section 124.86: 
     $374,000     .....     1994
     $457,000     .....     1995
    The 1994 appropriation includes $..-0-.. for 1993 and 
$374,000 for 1994. 
    The 1995 appropriation includes $66,000 for 1994 and 
$391,000 for 1995. 
    If the 1994 appropriation is not sufficient, the amount 
must be allocated to eligible schools in the same proportion as 
the 1993 appropriation. 
    Subd. 19.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
SCHOOLS.] For early childhood family education programs at 
tribal contract schools: 
     $68,000     .....     1994 
     $68,000     .....     1995 
    Subd. 20.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
secondary vocational education aid according to Minnesota 
Statutes, section 124.573: 
     $12,079,000     .....     1994 
     $13,244,000     .....     1995 
    The 1994 appropriation includes $1,811,000 for 1993 and 
$10,268,003 for 1994.  
    The 1995 appropriation includes $1,811,000 for 1994 and 
$11,433,000 for 1995.  
    Subd. 21.  [ADVISORY COUNCIL COSTS.] For the costs to 
project participants of convening their advisory council members 
during the term of the pilot project under section 15: 
     $15,000     .....     1994
    Subd. 22.  [TEACHER EDUCATION; HEARING IMPAIRED.] To assist 
school districts in greater Minnesota in educating teachers in 
American sign language, American sign language linguistics, and 
deaf culture as required under section 11, clause (c): 
     $25,000     .....     1994
    This appropriation is available until June 30, 1995. 
    Subd. 23.  [PROFICIENCY EVALUATION.] To evaluate teachers' 
baseline level of proficiency in American sign language under 
section 11, clause (b):  
     $24,000     .....     1994
    The appropriation is available until June 30, 1995. 
    Sec. 39.  [LCC FOR SPECIAL EDUCATION RULES REVIEW TASK 
FORCE.] 
    $15,000 is appropriated from the general fund to the 
legislative coordinating commission for the purposes of the 
section establishing a task force to review the state's special 
education rules.  This appropriation expires February 15, 1994. 
    Sec. 40.  [REPEALER.] 
    Minnesota Statutes 1992, section 124.32, subdivision 5, is 
repealed effective July 1, 1994.  Minnesota Statutes 1992, 
sections 124.331; 124.332; 124.333; and 124.573, subdivisions 2c 
and 2d, are repealed effective July 1, 1993. 
    Sec. 41.  [EFFECTIVE DATE.] 
    Sections 10 and 29 are effective beginning with the 
1992-1993 school year. 
    Section 33 is effective the day after final enactment and 
applies through the 1998-1999 school year if the St. Paul school 
district complies with the requirements in section 33, 
subdivision 2. 
    Section 36 is effective the day following final enactment 
and applies to participating school districts through the 
1996-1997 school year. 
    Section 32, clause (b), is effective June 30, 1994, and 
section 32, clauses (c) and (d), are effective June 30, 1995. 
    Section 35 is effective the day after final enactment and 
shall remain in effect until February 15, 1994, except that 
subdivision 5 shall remain in effect until June 1, 1994. 

                                ARTICLE 4

                           COMMUNITY PROGRAMS
    Section 1.  Minnesota Statutes 1992, section 3.873, 
subdivision 4, is amended to read: 
    Subd. 4.  [STAFF.] The legislative coordinating commission 
shall supply the commission with the necessary staff, office 
space, and administrative services. The commission may use 
existing legislative staff to provide legal counsel, research, 
fiscal, secretarial, and clerical assistance.  
    Sec. 2.  Minnesota Statutes 1992, section 3.873, 
subdivision 5, is amended to read: 
    Subd. 5.  [INFORMATION COLLECTION; INTERGOVERNMENTAL 
COORDINATION.] (a) The commission may conduct public hearings 
and otherwise collect data and information necessary to its 
purposes. 
    (b) The commission may request information or assistance 
from any state agency or officer to assist the commission in 
performing its duties.  The agency or officer shall promptly 
furnish any information or assistance requested.  
    (c) The secretary of the senate and the chief clerk of the 
house shall provide the commission with a copy of each bill 
introduced in the legislature concerning children, youth, and 
their families. 
    (d) Before implementing new or substantially revised 
programs relating to the subjects being studied by the 
commission under subdivision 7, the commissioner responsible for 
the program shall prepare an implementation plan for the program 
and shall submit the plan to the commission for review and 
comment.  The commission may advise and make recommendations to 
the commissioner on the implementation of the program and may 
request the changes or additions in the plan it deems 
appropriate. 
    (d) (e) By July 1, 1991, the responsible state agency 
commissioners, including the commissioners of education, health, 
human services, jobs and training, and corrections, shall 
prepare data for presentation to the commission on the state 
programs to be examined by the commission under subdivision 7, 
paragraph (a). 
    (e) (f) To facilitate coordination between executive and 
legislative authorities, the governor shall appoint a person to 
act as liaison between the commission and the governor shall 
meet with the children's cabinet. 
    Sec. 3.  Minnesota Statutes 1992, section 3.873, 
subdivision 6, is amended to read: 
    Subd. 6.  [LEGISLATIVE REPORTS AND RECOMMENDATIONS.] The 
commission shall make recommendations to the legislature to 
implement combining education, and health and human services and 
related support services provided to children and their families 
by the departments of education, human services, health and 
other state agencies into a single state department of children 
and families to provide more effective and efficient services.  
The commission also shall make recommendations to the 
legislature or committees, as it deems appropriate to assist the 
legislature in formulating legislation.  To facilitate 
coordination between executive and legislative authorities, the 
commission shall review and evaluate the plans and proposals of 
the governor and state agencies on matters within the 
commission's jurisdiction and shall provide the legislature with 
its analysis and recommendations.  Any analysis and 
recommendations must integrate recommendations for the design of 
an education service delivery system under Laws 1991, chapter 
265, article 6, section 64.  The commission shall report its 
final recommendations under this subdivision and subdivision 7, 
paragraph (a), by January 1, 1993 1994.  The commission shall 
submit a an annual progress report by January 1, 1992 of each 
year. 
    Sec. 4.  Minnesota Statutes 1992, section 3.873, 
subdivision 7, is amended to read: 
    Subd. 7.  [PRIORITIES.] The commission shall give priority 
to studying and reporting to the legislature on the matters 
described in this subdivision.  To the extent possible, the 
commission shall consult with knowledgeable individuals in 
communities throughout the state when developing recommendations 
or preparing reports on these matters. 
    (a) The commission must study and report on methods of 
improving legislative consideration of children and family 
issues and coordinating state agency programs relating to 
children and families, including the desirability, feasibility, 
and effects of creating a new state department of children's 
services, or children and family services, in which would be 
consolidated the responsibility for administering state programs 
relating to children and families. 
    (b) The commission must study and report on methods of 
consolidating or coordinating local health, correctional, 
educational, job, and human services, to improve the efficiency 
and effectiveness of services to children and families and to 
eliminate duplicative and overlapping services.  The commission 
shall evaluate and make recommendations on programs and projects 
in this and other states that encourage or require local 
jurisdictions to consolidate the delivery of services in schools 
or other community centers to reduce the cost and improve the 
coverage and accessibility of services.  The commission must 
study and recommend specific effectiveness measures to 
accurately determine the efficacy of programs and services 
provided to children and their families.  The commission must 
consider and recommend how to transform fragmented, 
crisis-oriented delivery systems focused on remediation services 
into flexible, comprehensive, well-coordinated, and 
family-oriented delivery systems focused on prevention 
services.  The commission must review and evaluate what impact 
the classification of data has on service providers' ability to 
anticipate and meet the full range of families' needs.  The 
commission must report on any laws, rules, or procedures that 
interfere with the effective delivery of community-based 
services to children and families. 
    (c) The commission must study and report on methods of 
improving and coordinating educational, social, and health care 
services that assist children and families during the early 
childhood years.  The commission's study must include an 
evaluation of the following:  early childhood health and 
development screening services, headstart, child care, and early 
childhood family education, and parents' involvement in programs 
meeting the social, cognitive, physical, and emotional needs of 
children.  
    (d) The commission must study and report on methods of 
improving and coordinating the practices of judicial, 
correctional, and social service agencies in placing juvenile 
offenders and children who are in need of protective services or 
treatment. 
    (e) The commission must study and recommend constructive 
changes in preventive, community-based programs that encourage 
children and youth to responsibly serve their community. 
    (f) The legislative commission on children, youth, and 
their families and the children's cabinet must study and make 
joint recommendations regarding a state-level governance 
structure to deliver funding and coordinate policy for children 
and their families.  These recommendations may include 
structural changes to minimize barriers to and actively promote 
collaborating and integrating services for children and families 
in the community.  The commission and cabinet must jointly 
evaluate the need for a new cabinet-level agency for children.  
The commission and cabinet shall report their findings and 
recommendations to the legislature by January 15, 1994. 
    Sec. 5.  Minnesota Statutes 1992, section 3.873, 
subdivision 9, is amended to read: 
    Subd. 9.  [EXPIRATION.] The commission expires on June 
30, 1994 1995. 
    Sec. 6.  [4.045] [CHILDREN'S CABINET.] 
    The children's cabinet shall consist of the commissioners 
of education, human services, jobs and training, public safety, 
corrections, finance, health, administration, housing finance 
agency, transportation, and the director of the office of 
strategic and long-range planning.  The governor shall designate 
one member to serve as cabinet chair.  The chair is responsible 
for ensuring that the duties of the children's cabinet are 
performed. 
    Sec. 7.  Minnesota Statutes 1992, section 120.06, 
subdivision 3, is amended to read: 
    Subd. 3.  [PUPILS, AT LEAST 21 YEARS OF AGE.] In addition 
to those admitted under subdivision 1, admission to a public 
secondary school is free to a person who is eligible under this 
subdivision.  In order to be eligible, a person must be: 
    (1) at least 21 years of age; 
    (2) a resident of the district where the secondary school 
is located; and 
    (3) eligible under section 126.22, subdivision 2. 
    Free admission is limited to two school years or the 
equivalent, or until the pupil completes the courses required to 
graduate, whichever is less.  A district that admits a person to 
school under this section must have a reasonable expectation 
that the person can obtain a diploma within two years. 
    Sec. 8.  Minnesota Statutes 1992, section 121.831, is 
amended to read: 
    121.831 [LEARNING READINESS PROGRAMS.] 
    Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A district or a 
group of districts may establish a learning readiness program 
for eligible children.  The purpose of a learning readiness 
program is to provide all eligible children adequate 
opportunities to participate in child development programs that 
enable the children to enter school with the necessary skills 
and behavior and family stability and support to progress and 
flourish. 
    Subd. 2.  [CHILD ELIGIBILITY.] (a) A child is eligible to 
participate in a learning readiness program offered by the 
resident district or another district if the child is:  
    (1) at least four three and one-half years old but has not 
entered kindergarten; and 
    (2) has participated or will participate in an early 
childhood receives developmental screening program according to 
under section 123.702. 
    A child may participate in a program provided by the 
district in which the child resides or by any other district 
within 90 days of enrolling in the program or the child's fourth 
birthday.  
    (b) A child younger than three and one-half years old may 
participate in a learning readiness program if the district or 
group of districts that establishes the program determines that 
the program can more effectively accomplish its purpose by 
including children younger than three and one-half years old. 
    Subd. 3.  [PROGRAM ELIGIBILITY.] A learning readiness 
program shall include the following: 
    (1) a comprehensive plan to coordinate anticipate and meet 
the needs of participating families by coordinating existing 
social services to provide for the needs of participating 
families programs and for by fostering collaboration with 
among agencies or other community-based organizations providing 
and programs that provide a full range of flexible, 
family-focused services to families with young children; 
    (2) a development and learning component to help a child 
children develop socially, intellectually, physically 
appropriate social, cognitive, and physical skills, 
and emotionally in a manner appropriate to the child emotional 
well-being; 
    (3) health referral services to address the children's 
medical, dental, mental health, and nutritional needs of the 
children; 
    (4) a nutrition component to meet the children's daily 
nutritional needs of the children; and 
    (5) parents' involvement of parents in the educational 
meeting children's educational, health, social service, and 
other needs of the children; 
    (6) community outreach to ensure participation by families 
who represent the racial, cultural, and economic diversity of 
the community; and 
    (7) community-based staff and program resources, including 
interpreters, that reflect the racial and ethnic characteristics 
of the children participating in the program. 
    Subd. 4.  [PROGRAM CHARACTERISTICS.] Learning readiness 
programs may include the following are encouraged to: 
    (1) prepare an individualized service plan to meet the 
individual needs of each child child's developmental and 
learning needs; 
    (2) participation by families who are representative of the 
racial, cultural, and economic diversity of the community; 
    (3) provide parent education to increase parents' 
knowledge, understanding, skills, and experience in child 
development and learning; 
    (4) (3) foster substantial parent involvement, that may 
include developing having parents develop curriculum or serving 
serve as a paid or volunteer educator, resource person, or other 
staff; 
    (5) (4) identification of identify the needs of families 
with respect to in the content of the child's learning 
readiness; 
    (6) (5) a plan to expand collaboration with public 
organizations, businesses, nonprofit organizations, or other 
private organizations to promote the development of develop a 
coordinated system of flexible, family-focused services 
available to anticipate and meet the full range of needs of all 
eligible children and their families with eligible children; 
    (7) (6) coordination of coordinate treatment and follow-up 
services for all children's identified physical and mental 
health problems; 
    (8) staff and program resources, including interpreters, 
that reflect the racial and ethnic population of the children in 
the program; 
    (9) (7) offer transportation for eligible children and 
their parents families for whom other forms of transportation 
are not available unavailable or would constitute an excessive 
financial burden; and 
    (10) (8) make substantial outreach efforts to assure 
significant participation by families with the greatest needs., 
including those families whose income level does not exceed the 
most recent update of the poverty guidelines required by 
sections 652 and 673(2) of the Omnibus Budget Reconciliation Act 
of 1981 (Public Law Number 97-35); 
    (9) use community-based, trained home visitors serving as 
paraprofessionals to provide social support, referrals, parent 
education, and other services; 
    (10) create community-based family resource centers and 
interdisciplinary teams; and 
    (11) enhance the quality of family or center-based child 
care programs by providing supplementary services and resources, 
staff training, and assistance with children with special needs. 
    Subd. 5.  [PURCHASE OR CONTRACT FOR SERVICES.] Whenever 
possible, A district may is encouraged to contract with a public 
organization or nonprofit organization providing to provide 
eligible children developmentally appropriate services meeting 
one or more of that meet the program requirements in subdivision 
3, clauses (1) to (4).  In the alternative, a district may also 
pay tuition or fees to place an eligible child in an existing 
program or.  A district may establish a new program where no 
existing, reasonably accessible program meets the program 
requirements in subdivision 3.  Services may be provided in a 
site-based program or in the home of the child or a combination 
of both.  The district may not limit restrict participation to 
district residents of the district.  
    Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] (a) The 
district shall optimize coordination of coordinate the learning 
readiness program with existing service community-based social 
services providers located in the community and foster 
collaboration among agencies and other community-based 
organizations and programs that provide flexible, family-focused 
services to families with children.  The district shall actively 
encourage greater sharing of responsibility and accountability 
among service providers and facilitate children's transition 
between programs.  
    (b) To the extent possible, resources shall follow the 
children based on the services needed, so that children have 
receive appropriate services in a stable environment and are not 
moved from one program location to program another.  Where 
geographically feasible, the district shall actively promote 
colocating of services for children and their families. 
    Subd. 7.  [ADVISORY COUNCIL.] Each learning readiness 
program shall have an advisory council which composed of members 
of existing early education-related boards, parents of 
participating children, child care providers, culturally 
specific service organizations, local resource and referral 
agencies, and representatives of early childhood service 
providers.  The council shall advise the school board in 
creating and administering the program and shall monitor the 
progress of the program.  The council shall ensure that children 
at greatest risk receive appropriate services.  If the school 
board is unable to appoint to the advisory council members of 
existing early education-related boards, it shall: 
    (1) appoint parents of children enrolled in the program who 
represent the racial, cultural, and economic diversity of the 
district and representatives of early childhood service 
providers as representatives to an existing advisory council; or 
    (2) appoint a joint council made up of members of existing 
boards, parents of participating children, and representatives 
of early childhood service providers. 
    Subd. 8.  [PRIORITY CHILDREN.] The district shall give high 
greatest priority to providing services to eligible children 
identified, through a means such as the early childhood 
screening process, as being developmentally disadvantaged or 
experiencing risk factors that could impede their learning 
readiness. 
    Subd. 9.  [CHILD RECORDS.] A record of a child's progress 
and development shall be maintained in the child's cumulative 
record while enrolled in the learning readiness program.  The 
cumulative record shall be used for the purpose of planning 
activities to suit individual needs and shall become part of the 
child's permanent record.  The cumulative record is private data 
under chapter 13.  Information in the record may be disseminated 
to an educator or service provider only to the extent that that 
person has a need to know the information.  
    Subd. 10.  [SUPERVISION.] A program provided by a school 
board shall be supervised by a licensed early childhood teacher, 
or a certified early childhood educator, or a licensed parent 
educator.  A program provided according to a contract between a 
school district and a nonprofit organization or another private 
organization shall be supervised and staffed according to the 
terms of the contract.  
    Subd. 11.  [DISTRICT STANDARDS.] The school board of the 
district shall develop standards for the learning readiness 
program that reflect the eligibility criteria in subdivision 3. 
The board shall consider including in the standards the program 
characteristics in subdivision 4. 
    Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
fee schedule based on a family's income but shall waive a fee 
for a participant unable to pay.  The fees charged must be 
designed to enable eligible children of all socioeconomic levels 
to participate in the program. 
    Subd. 13.  [ADDITIONAL REVENUE.] A district or an 
organization contracting with a district may receive money or 
in-kind services from a public or private organization. 
    Sec. 9.  [121.835] [WAY TO GROW/SCHOOL READINESS PROGRAM.] 
    Subdivision 1.  [ADMINISTRATION.] The commissioner of 
education shall administer the way to grow/school readiness 
program, in collaboration with the commissioners of health and 
human services, to promote intellectual, social, emotional, and 
physical development and school readiness of children prebirth 
to age six by coordinating and improving access to 
community-based and neighborhood-based services that support and 
assist all parents in meeting the health and developmental needs 
of their children at the earliest possible age.  
    Subd. 2.  [PROGRAM COMPONENTS.] (a) A way to grow/school 
readiness program must: 
    (1) collaborate and coordinate delivery of services with 
other community organizations and agencies serving children 
prebirth to age six and their families; 
    (2) target services to families with children prebirth to 
age six with services increasing based on need; 
    (3) build on existing services and coordinate a continuum 
of prebirth to age six essential services, including but not 
limited to prenatal health services, parent education and 
support, and preschool programs; 
    (4) provide strategic outreach efforts to families using 
trained paraprofessionals such as home visitors; and 
    (5) support of neighborhood oriented and culturally 
specific social support, information, outreach, and other 
programs to promote healthy development of children and to help 
parents obtain the information, resources, and parenting skills 
needed to nurture and care for their children. 
    (b) A way to grow/school readiness program may include: 
    (1) a program of home visitors to contact pregnant women 
early in their pregnancies, encourage them to obtain prenatal 
care, and provide social support, information, and referrals 
regarding prenatal care and well-baby care to reduce infant 
mortality, low birth weight, and childhood injury, disease, and 
disability; 
    (2) a program of home visitors to provide social support, 
information, and referrals regarding parenting skills and to 
encourage families to participate in parenting skills programs 
and other family supportive services; 
    (3) support of neighborhood-based or community-based 
parent-child and family resource centers or interdisciplinary 
resource teams to offer supportive services to families with 
preschool children; 
    (4) staff training, technical assistance, and incentives 
for collaboration designed to raise the quality of community 
services relating to prenatal care, child development, health, 
and school readiness; 
    (5) programs to raise general public awareness about 
practices that promote healthy child development and school 
readiness; 
    (6) programs to expand public and private collaboration to 
promote the development of a coordinated and culturally specific 
system of services available to all families; 
    (7) support of periodic screening and evaluation services 
for preschool children to assure adequate developmental 
progress; 
    (8) support of health, educational, and other developmental 
services needed by families with preschool children; 
    (9) support of family prevention and intervention programs 
needed to address risks of child abuse or neglect; 
    (10) development or support of a jurisdiction-wide 
coordinating agency to develop and oversee programs to enhance 
child health, development, and school readiness with special 
emphasis on neighborhoods with a high proportion of children in 
need; and 
    (11) other programs or services to improve the health, 
development, and school readiness of children in target 
neighborhoods and communities. 
    Subd. 3.  [ELIGIBLE GRANTEES.] An application for a grant 
may be submitted by any of the following entities: 
    (1) a city, town, county, school district, or other local 
unit of government; 
    (2) two or more governmental units organized under a joint 
powers agreement; 
    (3) a community action agency that satisfies the 
requirements of section 268.53, subdivision 1; or 
    (4) a nonprofit organization, or consortium of nonprofit 
organizations, that demonstrates collaborative effort with at 
least one unit of local government. 
    Subd. 4.  [DISTRIBUTION.] The commissioner of education 
shall give priority to funding existing programs. 
    To the extent possible, the commissioner shall award grants 
to applicants with experience or demonstrated ability in 
providing comprehensive, multidisciplinary, community-based 
programs with objectives similar to those listed in subdivision 
2, or in providing other human services or social services 
programs using a multidisciplinary, community-based approach. 
    Subd. 5.  [APPLICATIONS.] Each grant application must 
propose a five-year program designed to accomplish the purposes 
of this section.  The application must be submitted on forms 
provided by the commissioner of education.  The grant 
application must include: 
    (1) a description of the specific neighborhoods that will 
be served under the program and the name, address, and a 
description of each community agency or agencies with which the 
applicant intends to contract to provide services using grant 
money; 
    (2) a letter of intent from each community agency 
identified in clause (1) that indicates the agency's willingness 
to participate in the program and approval of the proposed 
program structure and components; 
    (3) a detailed description of the structure and components 
of the proposed program and an explanation of how each component 
will contribute to accomplishing the purposes of this section; 
    (4) a description of how public and private resources, 
including schools, health care facilities, government agencies, 
neighborhood organizations, and other resources, will be 
coordinated and made accessible to families in target 
neighborhoods, including letters of intent from public and 
private agencies indicating their willingness to cooperate with 
the program; 
    (5) a detailed, proposed budget that demonstrates the 
ability of the program to accomplish the purposes of this 
section using grant money and other available resources, 
including funding sources other than a grant; and 
    (6) a comprehensive evaluation plan for measuring the 
success of the program in meeting the objectives of the overall 
grant program and the individual grant project, including an 
assessment of the impact of the program in terms of at least 
three of the following criteria:  
    (i) utilization rates of community services; 
    (ii) availability of support systems for families; 
    (iii) birth weights of newborn babies; 
    (iv) child accident rates; 
    (v) utilization rates of prenatal care; 
    (vi) reported rates of child abuse; 
    (vii) rates of health screening and evaluation; and 
    (viii) school readiness of way to grow participants 
compared to nonparticipants. 
    Subd. 6.  [MATCH.] Each dollar of state money must be 
matched with 50 cents of nonstate money.  Programs may match 
state money with in-kind contributions, including volunteer 
assistance. 
    Subd. 7.  [ADVISORY COMMITTEES.] The commissioner of 
education shall establish a program advisory committee 
consisting of persons knowledgeable in child development, child 
health, and family services, who reflect the geographic, 
cultural, racial, and ethnic diversity of the state; and 
representatives of the commissioners of education, human 
services, and health.  This program advisory committee shall 
review grant applications, assist in distribution of the grants, 
and monitor progress of the way to grow/school readiness 
program.  Each grantee must establish a program advisory board 
of 12 or more members to advise the grantee on program design, 
operation, and evaluation.  The board must include 
representatives of local units of government and representatives 
of the project area who reflect the geographic, cultural, 
racial, and ethnic diversity of that community.  
    Subd. 8.  [REPORT.] The advisory committee shall report to 
the education committee of the legislature by January 15, 1993, 
on the evaluation required in subdivision 5, clause (6), and 
shall make recommendations for establishing successful way to 
grow programs in unserved areas of the state. 
    Sec. 10.  [121.8355] [FAMILY SERVICES AND COMMUNITY-BASED 
COLLABORATIVES.] 
    Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
a family services collaborative, a minimum of one school 
district, one county, and one public health entity must agree in 
writing to provide coordinated family services and commit 
resources to an integrated fund.  Collaboratives are expected to 
have broad community representation, which may include other 
local providers, including additional school districts, 
counties, and public health entities, other municipalities, 
existing culturally specific community organizations, local 
health organizations, private and nonprofit service providers, 
child care providers, local foundations, community-based service 
groups, businesses, local transit authorities or other 
transportation providers, community action agencies under 
section 268.53, senior citizen volunteer organizations, and 
sectarian organizations that provide nonsectarian services. 
    (b) Community-based collaboratives composed of 
representatives of schools, local businesses, local units of 
government, parents, students, clergy, health and social 
services providers, youth service organizations, and existing 
culturally specific community organizations may plan and develop 
services for children and youth.  A community-based 
collaborative must agree to collaborate with county, school 
district, and public health entities.  Their services may 
include opportunities for children or youth to improve child 
health and development, reduce barriers to adequate school 
performance, improve family functioning, provide community 
service, enhance self esteem, and develop general employment 
skills.  
     Subd. 1a.  [DEFINITION.] For purposes of this section, 
"collaborative" means either a family services collaborative 
described under subdivision 1, paragraph (a) or community-based 
collaboratives described under subdivision 1, paragraph (b). 
    Subd. 2.  [DUTIES.] (a) Each collaborative shall: 
    (1) establish, with assistance from families and service 
providers, clear goals for addressing the health, developmental, 
educational, and family-related needs of children and youth and 
use outcome-based indicators to measure progress toward 
achieving those goals; 
    (2) establish a comprehensive planning process that 
involves all sectors of the community, identifies local needs, 
and surveys existing local programs; 
    (3) integrate service funding sources so that children and 
their families obtain services from providers best able to 
anticipate and meet their needs; 
    (4) coordinate families' services to avoid duplicative and 
overlapping assessment and intake procedures; 
    (5) focus primarily on family-centered services; 
    (6) encourage parents and volunteers to actively 
participate by using flexible scheduling and actively recruiting 
volunteers; 
    (7) provide services in locations that are readily 
accessible to children and families; 
    (8) use new or reallocated funds to improve or enhance 
services provided to children and their families; 
    (9)  identify federal, state, and local institutional 
barriers to coordinating services and suggest ways to remove 
these barriers; and 
    (10) design and implement an integrated local service 
delivery system for children and their families that coordinates 
services across agencies and is client centered.  The delivery 
system shall provide a continuum of services for children birth 
to age 18.  The collaborative shall describe the community plan 
for serving pregnant women and children from birth to age six. 
    (b) The outcome-based indicators developed in paragraph 
(a), clause (1) may include the number of low birthweight 
babies, the infant mortality rate, the number of children who 
are adequately immunized and healthy, require out-of-home 
placement or long-term special education services, and the 
number of minor parents. 
    Subd. 3.  [INTEGRATED LOCAL SERVICE DELIVERY SYSTEM.] A 
collaborative shall design an integrated local service delivery 
system that coordinates funding streams and the delivery of 
services between existing agencies.  The integrated local 
service delivery system may: 
    (1) improve outreach and early identification of children 
and families in need of services and intervene across service 
systems on behalf of families; 
   (2) offer an inclusive service system that supports all 
families within a community; 
    (3) coordinate services that eliminate the need to match 
funding streams, provider eligibilities, or clients with 
multiple providers; 
    (4) improve access to services by coordinating 
transportation services; 
    (5) provide initial outreach to all new mothers and 
periodic family visits to children who are potentially at risk; 
    (6) coordinate assessment across systems to determine which 
children and families need coordinated multiagency services and 
supplemental services; 
    (7) include multiagency service plans and coordinate 
unitary case management; and 
    (8) integrate funding of services. 
    Subd. 4.  [INTEGRATED FUND.] (a) A collaborative must 
establish an integrated fund to help provide an integrated 
service system and fund additional supplemental services.  The 
integrated fund may consist of federal, state, local, or private 
resources.  The collaborative agreement must specify a minimum 
financial commitment by the contributors to an integrated fund.  
Contributors may not reduce their financial commitment except as 
specified in the agreement or by federal declaration. 
    (b) A collaborative must seek to maximize federal and 
private funds by designating local expenditures for services 
that can be matched with federal or private grant funds and by 
designing services to meet the requirements for state or federal 
reimbursement.  
    (c) Collaboratives may seek to maximize federal 
reimbursement of funds under section 256F.10. 
    Subd. 5.  [LOCAL PLANS.] The collaborative plan shall 
describe how the collaborative will carry out the duties and 
implement the integrated local services delivery system required 
under this section. The plan shall include a list of the 
collaborative participants, a copy of the agreement required 
under subdivision 1, the amount and source of resources each 
participant will contribute to the integrated fund, and methods 
for increasing local participation in the collaborative, 
involving parents and other community members in implementating 
and operating the collaborative, and providing effective 
outreach services to all families with young children in the 
community.  The plan shall also include specific goals that the 
collaborative intends to achieve and methods for objectively 
measuring progress toward meeting the goals. 
    Subd. 6.  [PLAN APPROVAL BY THE CHILDREN'S CABINET.] (a) 
The children's cabinet shall approve local plans for 
collaboratives.  In approving local plans, the children's 
cabinet shall give highest priority to a plan that provides: 
    (1) early intervention and family outreach services; 
    (2) family visitation services; 
    (3) a continuum of services for children from birth to age 
18; 
    (4) family preservation services; 
    (5) culturally sensitive approaches for delivering services 
and utilizing culturally specific organizations; 
    (6) clearly defined outcomes and valid methods of 
assessment; 
    (7) effective service coordination; 
    (8) participation by the maximum number of jurisdictions 
and local, county, and state funding sources; 
    (9) integrated community service providers and local 
resources; 
    (10) integrated transportation services; 
    (11) integrated housing services; and 
    (12) coordinated services that include a children's mental 
health collaborative authorized by law. 
    (b) The children's cabinet shall ensure that the 
collaboratives established under this section do not conflict 
with any state or federal policy or program and do not 
negatively impact the state budget.  
    Subd. 7.  [RECEIPT OF FUNDS.] The office of strategic and 
long-range planning may receive and administer public and 
private funds for the purposes of this act. 
    Sec. 11.  Minnesota Statutes 1992, section 121.882, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [HOME VISITING PROGRAM.] (a) The commissioner of 
education shall include as part of the early childhood family 
education programs a parent education component to prevent child 
abuse and neglect.  This parent education component must include:
    (1) expanding statewide the home visiting component of the 
early childhood family education programs; 
    (2) training parent educators, child educators, community 
outreach workers, and home visitors in the dynamics of child 
abuse and neglect and positive parenting and discipline 
practices; and 
    (3) developing and distributing disseminating education and 
public information materials that promote positive parenting 
skills and prevent child abuse and neglect. 
    (b) The parent education component must: 
    (1) offer to isolated or at-risk families direct home 
visiting parent education services that at least address 
parenting skills, a child's development and stages of growth, 
communication skills, managing stress, problem-solving skills, 
positive child discipline practices, methods of improving 
parent-child interactions and enhancing self-esteem, using 
community support services and other resources, and encouraging 
parents to have fun with and enjoy their children; 
    (2) develop a risk assessment tool to determine the 
family's level of risk; 
    (3) establish clear objectives and protocols for home 
visits; 
    (4) determine the frequency and duration of home visits 
based on a risk-need assessment of the client, with home visits 
beginning in the second trimester of pregnancy and continuing, 
based on client need, until a child is six years old; 
    (5) encourage families to make a transition from home 
visits to site-based parenting programs to build a family 
support network and reduce the effects of isolation; 
    (6) develop and distribute education materials on 
preventing child abuse and neglect that may be used in home 
visiting programs and parent education classes and distributed 
to the public; 
    (7) initially provide at least 40 hours of training and 
thereafter ongoing training for parent educators, child 
educators, community outreach workers, and home visitors that 
covers the dynamics of child abuse and neglect, domestic 
violence and victimization within family systems, signs of abuse 
or other indications that a child may be at risk of being abused 
or neglected, what child abuse and neglect are, how to properly 
report cases of child abuse and neglect, respect for cultural 
preferences in child rearing, what community resources, social 
service agencies, and family support activities and programs are 
available, child development and growth, parenting skills, 
positive child discipline practices, identifying stress factors 
and techniques for reducing stress, home visiting techniques, 
and risk assessment measures; 
    (8) provide program services that are community-based, 
accessible, and culturally relevant; and 
    (9) foster collaboration among existing agencies and 
community-based organizations that serve young children and 
their families. 
    (c) Home visitors should reflect the demographic 
composition of the community the home visitor is serving to the 
extent possible. 
    Sec. 12.  Minnesota Statutes 1992, section 123.702, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every school board shall provide for a 
mandatory program of early childhood developmental screening for 
children who are four years old and older but who have not 
entered kindergarten or first grade in a public school once 
before school entrance, targeting children who are between 3-1/2 
and 4 years old.  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 family education programs, or by other existing 
programs.  This screening examination is a mandatory requirement 
for a student to continue attending kindergarten or first grade 
in a public school.  A child need not submit to developmental 
screening provided by a school board if the child's health 
records indicate to the school board that the child has received 
comparable developmental screening from a public or private 
health care organization or individual health care provider.  
The school districts are encouraged to reduce the costs of 
preschool developmental screening programs by utilizing 
volunteers in implementing the program.  
    Sec. 13.  Minnesota Statutes 1992, section 123.702, 
subdivision 1a, is amended to read: 
    Subd. 1a.  A child must not be enrolled in kindergarten or 
first grade in a public school unless the parent or guardian of 
the child submits to the school principal or other person having 
general control and supervision of the school a record 
indicating the months and year the child received developmental 
screening and the results of the screening not later than 30 
days after the first day of attendance.  If a child is 
transferred from one kindergarten to another or from one first 
grade to another, the parent or guardian of the child must be 
allowed 30 days to submit the child's record, during which time 
the child may attend school. 
    Sec. 14.  Minnesota Statutes 1992, section 123.702, 
subdivision 1b, is amended to read: 
    Subd. 1b.  (a) A screening program shall include at least 
the following components:  developmental assessments, hearing 
and vision screening or referral, immunization review and 
referral, the child's height and weight, review of any special 
family circumstances that might affect development, 
identification of additional risk factors that may influence 
learning, an interview with the parent about the child, and 
referral for assessment, diagnosis, and treatment when potential 
needs are identified.  The school district and the person 
performing or supervising the screening shall provide a parent 
or guardian with clear written notice that the parent or 
guardian may decline to answer questions or provide information 
about family circumstances that might affect development and 
identification of risk factors that may influence learning.  The 
notice shall clearly state that declining to answer questions or 
provide information does not prevent the child from being 
enrolled in kindergarten or first grade if all other screening 
components are met.  If a parent or guardian is not able to read 
and comprehend the written notice, the school district and the 
person performing or supervising the screening must convey the 
information in another manner.  The notice shall also inform the 
parent or guardian that a child need not submit to the school 
district screening program if the child's health records 
indicate to the school that the child has received comparable 
developmental screening performed within the preceding 365 days 
by a public or private health care organization or individual 
health care provider.  The notice shall be given to a parent or 
guardian at the time the district initially provides information 
to the parent or guardian about screening and shall be given 
again at the screening location.  
     (b) All screening components shall be consistent with the 
standards of the state commissioner of health for early 
developmental screening programs.  No developmental screening 
program shall provide laboratory tests or a physical examination 
to any child.  The school district shall request from the public 
or private health care organization or the individual health 
care provider the results of any laboratory test or physical 
examination within the 12 months preceding a child's scheduled 
screening.  
    (c) If a child is without health coverage, the school 
district shall refer the child to an appropriate health care 
provider.  
    (d) A school board may offer additional components such as 
nutritional, physical and dental assessments, review of family 
circumstances that might affect development, blood pressure, 
laboratory tests, and health history.  State aid shall not be 
paid for additional components. 
    (e) If a statement signed by the child's parent or guardian 
is submitted to the administrator or other person having general 
control and supervision of the school that the child has not 
been screened because of conscientiously held beliefs of the 
parent or guardian, the screening is not required. 
    Sec. 15.  Minnesota Statutes 1992, section 123.702, 
subdivision 3, is amended to read: 
    Subd. 3.  The school board shall inform each resident 
family with a child eligible to participate in the developmental 
screening program about the availability of the program and the 
state's requirement that a child receive developmental screening 
not later than 30 days after the first day of attending 
kindergarten or first grade in a public school. 
    Sec. 16.  Minnesota Statutes 1992, section 123.702, 
subdivision 4, is amended to read: 
    Subd. 4.  A school board may contract with or purchase 
service from an approved early developmental screening program 
in the area.  Developmental screening must be conducted 
by either an individual who is licensed as, or has the training 
equal that is similar to, a special education teacher, school 
psychologist, kindergarten teacher, prekindergarten teacher, 
school nurse, public health nurse, registered nurse, or 
physician.  The individual may be a volunteer. 
    Sec. 17.  Minnesota Statutes 1992, section 123.702, 
subdivision 5, is amended to read: 
    Subd. 5.  Every school board shall integrate and utilize 
volunteer screening programs in implementing sections 123.702 to 
123.705 123.7045 wherever possible. 
    Sec. 18.  Minnesota Statutes 1992, section 123.7045, is 
amended to read: 
    123.7045 [DEVELOPMENTAL SCREENING AID.] 
    Each school year, the state shall pay a school district $25 
for each child screened according to the requirements of section 
123.702.  If this amount of aid is insufficient, the district 
may permanently transfer from the general fund an amount that, 
when added to the aid, is sufficient. 
    Sec. 19.  Minnesota Statutes 1992, section 124.26, 
subdivision 2, is amended to read: 
    Subd. 2.  Each district or group of districts providing 
adult basic education programs shall establish and maintain 
accounts separate from all other district accounts for the 
receipt and disbursement of all funds related to these 
programs.  All aid received pursuant to this section shall be 
utilized solely for the purposes of adult basic education 
programs.  In no case shall federal and state aid equal more 
than 90 100 percent of the actual cost of providing these 
programs. 
    Sec. 20.  Minnesota Statutes 1992, section 124.2601, 
subdivision 4, is amended to read: 
    Subd. 4.  [LEVY.] A district with an eligible program may 
levy an amount not to exceed the amount raised by .21 .12 
percent times the adjusted tax capacity of the district for the 
preceding year. 
    Sec. 21.  Minnesota Statutes 1992, section 124.2601, 
subdivision 6, is amended to read: 
    Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
adult basic education program that receives less state aid under 
subdivisions 3 and 7 than from the aid formula for fiscal year 
1992 shall receive the amount of aid it received in fiscal year 
1992. 
    (b) For 1995 and later fiscal years, an adult basic 
education program that receives aid shall receive at least the 
amount of aid it received in fiscal year 1992 under subdivisions 
3 and 7, plus aid equal to the amount of revenue that would have 
been raised for taxes payable in 1994 under Minnesota Statutes 
1992, section 124.2601, subdivision 4, minus the amount raised 
under subdivision 4. 
    Sec. 22.  Minnesota Statutes 1992, section 124.2615, 
subdivision 2, is amended to read: 
    Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
receive learning readiness aid if the program plan as required 
by subdivision 1 has been approved by the commissioner of 
education.  The aid is equal to: 
    (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
times the number of eligible four-year old children residing in 
the district, as determined according to section 124.2711, 
subdivision 2; plus 
    (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
times the result of; 
    (3) the ratio of the number of pupils enrolled in the 
school district from families eligible for the free or reduced 
school lunch program to the total number of pupils enrolled in 
the school district; times 
    (4) the number of children in clause (1). 
    For fiscal year 1994 and thereafter, a district shall 
receive learning readiness aid equal to: 
    (1) $500 times the number of all participating eligible 
children; plus the number of eligible four-year old children in 
the district times the ratio of 50 percent of the total learning 
readiness aid for that year to the total number of eligible 
four-year old children reported to the commissioner for that 
year; plus 
    (2) $200 times the number of participating eligible 
children identified according to section 121.831, subdivision 
8 the number of participating eligible children times the ratio 
of 15 percent of the total learning readiness aid for that year 
to the total number of participating eligible children for that 
year; plus 
    (3) the number of pupils enrolled in the school district 
from families eligible for the free or reduced school lunch 
program times the ratio of 35 percent of the total learning 
readiness aid for that year to the total number of pupils in the 
state from families eligible for the free or reduced school 
lunch program. 
    Sec. 23.  Minnesota Statutes 1992, section 124.2615, 
subdivision 3, is amended to read: 
    Subd. 3.  [USE OF AID.] Learning readiness aid shall be 
used only to provide a learning readiness program and may be 
used to provide transportation.  Not more than five percent of 
the aid may be used for the cost of administering the program.  
Aid must be used to supplement and not supplant local, state, 
and federal funding.  Aid may not be used for instruction and 
services required under section 120.17.  Aid may not be used to 
purchase land or construct buildings, but may be used to lease 
or renovate existing buildings. 
    Sec. 24.  Minnesota Statutes 1992, section 124.2711, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE.] The revenue for early childhood 
family education programs for a school district is the amount of 
revenue earned by multiplying $96.50 for fiscal year 1992 
or equals $101.25 for fiscal year 1993 and later fiscal years 
times the greater of: 
    (1) 150; or 
    (2) the number of people under five years of age residing 
in the school district on September 1 of the last previous 
school year. 
    Sec. 25.  Minnesota Statutes 1992, section 124.2711, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
obtain early childhood family education revenue, a district may 
levy an amount equal to the tax rate of .596 .626 percent times 
the adjusted tax capacity of the district for the year preceding 
the year the levy is certified.  If the amount of the early 
childhood family education levy would exceed the early childhood 
family education revenue, the early childhood family education 
levy shall equal the early childhood family education revenue. 
    Sec. 26.  Minnesota Statutes 1992, section 124.2711, is 
amended by adding a subdivision to read: 
    Subd. 5.  [HOME VISITING LEVY.] A school district that 
enters into a collaborative agreement to provide education 
services and social services to families with young children may 
levy an amount equal to $1.60 times the number of people under 
five years of age residing in the district on September 1 of the 
last school year.  Levy revenue under this subdivision shall not 
be included as revenue under subdivision 1.  The revenue shall 
be used for home visiting programs under section 121.882, 
subdivision 2b. 
    Sec. 27.  Minnesota Statutes 1992, section 124.2713, 
subdivision 5, is amended to read: 
    Subd. 5.  [YOUTH SERVICE REVENUE.] Youth service program 
revenue is available to a district that has implemented a youth 
development plan and a youth service program.  Youth service 
revenue equals 75 85 cents for fiscal year 1992 1994, $1 for 
fiscal year 1995, and 85 cents for fiscal year 1993 1996 and 
thereafter, times the greater of 1,335 or the population of the 
district. 
    Sec. 28.  Minnesota Statutes 1992, section 124.2713, 
subdivision 6, is amended to read: 
    Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
education revenue, a district may levy the amount raised by a 
tax rate of 1.07 percent for fiscal year 1992 and 1.095 1.13 
percent for fiscal year 1993 1995 and thereafter, times the 
adjusted net tax capacity of the district.  If the amount of the 
community education levy would exceed the community education 
revenue, the community education levy shall equal the community 
education revenue be determined according to subdivision 6a.  
    Sec. 29.  Minnesota Statutes 1992, section 124.2713, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE 
FORMULA.] If the amount of the community education levy for a 
district exceeds the district's community education revenue, the 
amount of the community education levy is limited to the sum of: 
    (1) the district's community education revenue according to 
subdivision 1; plus 
    (2) the amount of the aid reduction for the same fiscal 
year according to subdivision 6b.  
    For purposes of statutory cross-reference, a levy made 
according to this subdivision is the levy made according to 
subdivision 6.  
    Sec. 30.  Minnesota Statutes 1992, section 124.2713, is 
amended by adding a subdivision to read: 
    Subd. 6b.  [COMMUNITY EDUCATION LEVY EQUITY.] (a) If a 
district's community education levy for a fiscal year is 
determined according to subdivision 6a, an amount must be 
deducted from state aid authorized in this chapter receivable 
for the same fiscal year, and from state payments authorized in 
chapter 273 and receivable for the same fiscal year, the amount 
of the deduction equals the difference between:  
    (1) the district's community education revenue according to 
subdivision 1; and 
    (2) the district's maximum community education levy 
according to subdivision 6.  
    (b) The amount of the deduction in any fiscal year must not 
exceed the amount of state payments authorized in chapters 124 
and 273 and receivable for the same fiscal year in the 
district's community service fund. 
    Sec. 31.  Minnesota Statutes 1992, section 124.2714, is 
amended to read: 
    124.2714 [ADDITIONAL COMMUNITY EDUCATION REVENUE.] 
    (a) A district that is eligible under section 124.2713, 
subdivision 2, may levy an amount up to the amount authorized by 
Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
(2).  
    (b) Beginning with levies for fiscal year 1995, this levy 
must be reduced each year by the amount of any increase in the 
levying district's general community education revenue under 
section 124.2713, subdivision 3, for that fiscal year over the 
amount received by the district under section 124.2713 for 
fiscal year 1994. 
    (c) The proceeds of the levy may be used for the purposes 
set forth in section 124.2713, subdivision 8. 
     Sec. 32.  Minnesota Statutes 1992, section 124.2716, is 
amended to read: 
    124.2716 [EXTENDED DAY LEVY REVENUE.] 
    Subdivision 1.  [ELIGIBILITY.] A school district that 
offers an extended day program according to section 121.88, 
subdivision 10, may levy is eligible for extended day revenue 
for the additional costs of providing services to children with 
disabilities or to children experiencing family or related 
problems of a temporary nature who participate in the extended 
day program. 
    Subd. 2.  [EXTENDED DAY REVENUE.] The extended day revenue 
for an eligible school district equals the approved additional 
cost of providing services to children with disabilities or 
children experiencing family or related problems of a temporary 
nature who participate in the extended day program.  
    Subd. 3.  [EXTENDED DAY LEVY.] To obtain extended day 
revenue, a school district may levy an amount equal to the 
district's extended day revenue as defined in subdivision 2 
multiplied by the lesser of one, or the ratio of the quotient 
derived by dividing the adjusted net tax capacity of the 
district for the year before the year the levy is certified by 
the actual pupil units in the district for the school year to 
which the levy is attributable, to $3,700.  
    Subd. 4.  [EXTENDED DAY AID.] A district's extended day aid 
is the difference between its extended day revenue and its 
extended day levy.  If a district does not levy the entire 
amount permitted, extended day aid must be reduced in proportion 
to the actual amount levied. 
    Sec. 33.  Minnesota Statutes 1992, section 124A.29, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STAFF DEVELOPMENT, AND VIOLENCE PREVENTION 
, AND PARENTAL INVOLVEMENT PROGRAMS.] (a) Of a district's basic 
revenue under section 124A.22, subdivision 2, an amount equal to 
$15 times the number of actual pupil units shall be reserved and 
may be used only to provide staff time for in-service education 
for violence prevention programs under section 126.77, 
subdivision 2, or staff development programs, including 
outcome-based education, under section 126.70, subdivisions 1 
and 2a.  The school board shall determine the staff development 
activities to provide, the manner in which they will be 
provided, and the extent to which other local funds may be used 
to supplement staff development activities. 
    (b) Of a district's basic revenue under section 124A.22, 
subdivision 2, an amount equal to $5 times the number of actual 
pupil units must be reserved and may be used only to provide 
parental involvement programs that implement section 126.69.  A 
district may use up to $1 of the $5 times the number of actual 
pupil units for promoting parental involvement in the PER 
process.  Parental involvement programs may include career 
teacher programs, programs promoting parental involvement in the 
PER process, coordination of volunteer services, and programs 
designed to encourage community involvement. 
    Sec. 34.  Minnesota Statutes 1992, section 126.22, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
eligible to participate in the high school graduation incentives 
program:  
    (a) any pupil who is between the ages of 12 and 16, except 
as indicated in clause (6) 21, or who is an elementary pupil, 
and in either case, who:  
    (1) is at least two grade levels below the performance 
level for pupils of the same age in a locally determined 
achievement test; or 
    (2) is at least one year behind in satisfactorily 
completing coursework or obtaining credits for graduation; or 
    (3) is pregnant or is a parent; or 
    (4) has been assessed as chemically dependent; or 
    (5) has been excluded or expelled according to sections 
127.26 to 127.39; or 
    (6) is between the ages of 12 and 21 and has been referred 
by a school district for enrollment in an eligible program or a 
program pursuant to section 126.23; or 
    (7) is a victim of physical or sexual abuse; or 
    (8) has experienced mental health problems; or 
    (9) has experienced homelessness sometime within six months 
before requesting a transfer to an eligible program; or 
    (b) any pupil who is between the ages of 16 and 19 who is 
attending school, and who is at least two grade levels below the 
performance level for pupils of the same age in a locally 
determined achievement test, or is at least one year behind in 
obtaining credits for graduation, or is pregnant or is a parent, 
or has been assessed as chemically dependent; or 
    (c) any person between 16 and 21 years of age who has not 
attended a high school program for at least 15 consecutive 
school days, excluding those days when school is not in session, 
and who is at least two grade levels below the performance level 
for pupils of the same age in a locally determined achievement 
test, or is at least one year behind in obtaining credits for 
graduation, or is pregnant or is a parent, or has been assessed 
as chemically dependent; or 
    (d) any person who is at least 21 years of age and who:  
    (1) has received fewer than 14 years of public or nonpublic 
education, beginning at age 5; 
    (2) has not completed the requirements for a high school 
diploma; and 
    (3) at the time of application, (i) is eligible for 
unemployment compensation benefits or has exhausted the 
benefits, (ii) is eligible for, or is receiving income 
maintenance and support services, as defined in section 
268.0111, subdivision 5, or (iii) is eligible for services under 
the displaced homemaker program, state wage-subsidy program, or 
any programs under the federal Jobs Training Partnership Act or 
its successor.  
    (e) an elementary school pupil who is determined by the 
district of attendance to be at risk of not succeeding in school 
is eligible to participate in the program. 
    Notwithstanding section 127.27, subdivision 7, the 
provisions of section 127.29, subdivision 1, do not apply to a 
pupil under age 21 who participates in the high school 
graduation incentives program.  
    Sec. 35.  Minnesota Statutes 1992, section 126.22, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
according to subdivision 2, clause (a), (b), (c), (d), or (e), 
may enroll in any program approved by the state board of 
education under Minnesota Rules, part 3500.3500, or area 
learning centers under sections 124C.45 to 124C.48, or according 
to section 121.11, subdivision 12. 
    (b) A pupil who is eligible according to subdivision 2, 
clause (b), (c), or (d), and who is between the ages of 16 and 
21 may enroll in post-secondary courses under section 123.3514. 
    (c) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), (d), or (e), may enroll in any public elementary 
or secondary education program.  However, a person who is 
eligible according to subdivision 2, clause (d) (b), may enroll 
only if the school board has adopted a resolution approving the 
enrollment. 
    (d) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), or (e), may enroll part time, if 16 years of age 
or older, or full time in any nonprofit, nonpublic, nonsectarian 
school that has contracted with the school district of residence 
to provide educational services.  
    (e) A pupil who is eligible under subdivision 2, clause (c) 
or (d), between the ages of 16 and 21 may enroll in any adult 
basic education programs approved under section 124.26 and 
operated under the community education program contained in 
section 121.88. 
    Sec. 36.  Minnesota Statutes 1992, section 126.22, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
least 16 years of age, who is eligible under subdivision 2, 
clause (a), (b), or (c), and who has been enrolled only in a 
public school, if the pupil has been enrolled in any school, 
during the year immediately before transferring under this 
subdivision, may transfer to any nonprofit, nonpublic school 
that has contracted with the school district of residence to 
provide nonsectarian educational services.  Such a school must 
enroll every eligible pupil who seeks to transfer to the school 
under this program subject to available space. 
    Sec. 37.  Minnesota Statutes 1992, section 126.22, 
subdivision 4, is amended to read: 
    Subd. 4.  [PUPIL ENROLLMENT.] Any eligible pupil may apply 
to enroll in an eligible program.  Approval of the resident 
district is not required for: 
    (1) an eligible pupil to enroll in any eligible program in 
a nonresident district under subdivision 3 or an area learning 
center established under section 124C.45; or 
    (2) an eligible pupil under subdivision 2, clause (c) or 
(d), to enroll in an adult basic education program approved 
under section 124.26. 
    Sec. 38.  Minnesota Statutes 1992, section 126.67, 
subdivision 8, is amended to read: 
    Subd. 8.  [CAREER INFORMATION; APPROPRIATION.] (a) The 
department of education, through the Minnesota career 
information system, may provide career information to school 
districts and other educational organizations, employment and 
training services, human service agencies, libraries, and 
families.  The department shall collect fees necessary to 
recover all expenditures related to the operation of the 
Minnesota career information service.  Grants may be accepted 
and used for the improvement or operation of the program.  All 
receipts must be deposited in a special account in the special 
revenue fund.  The money in the account, along with any interest 
earned, is appropriated annually to the commissioner of 
education for the Minnesota career information system.  
Equipment, materials, and property purchased with Minnesota 
career information system money must be for the sole use and 
benefit of the system. 
    (b) The department must recognize that the Minnesota career 
information system operates under a self-supporting directive, 
and, accordingly, must be provided sufficient administrative 
latitude within the confines of law to enable the system to 
operate effectively. 
    Sec. 39.  Laws 1992, chapter 571, article 10, section 29, 
is amended to read: 
    Sec. 29.  [124.2712] [ECFE REVENUE.] 
    In addition to the revenue in section 124.2711, subdivision 
1, in fiscal year 1993 1994 a district is eligible for aid equal 
to $1.60 times the greater of 150 or the number of people under 
five years of age residing in the school district on September 1 
of the last school year.  This amount may be used only for 
in-service education for early childhood family education parent 
educators, child educators, and home visitors for violence 
prevention programs and for home visiting programs under section 
6 126.77.  A district that uses revenue under this paragraph for 
home visiting programs shall provide home visiting program 
services through its early childhood family education program or 
shall contract with a public or nonprofit organization to 
provide such services.  A district may establish a new home 
visiting program only where no existing, reasonably accessible 
home visiting program meets the program requirements in 
section 6 126.77. 
    Sec. 40.  [INTEGRATED CHILDREN'S DATABASE.] 
    Subdivision 1.  [PLAN.] The departments of education, 
administration, health and human services, and the office of 
strategic and long-range planning shall jointly develop a plan 
for an integrated statewide children's service database.  The 
plan must contain common essential data elements that include 
all children from birth through kindergarten enrollment by July 
1, 1995.  The essential data elements shall be the basis for a 
statewide children's service database.  Initial service areas 
shall include but are not limited to:  early childhood and 
family education, ECFE tribal schools, learning readiness, way 
to grow, early childhood special education part H, even start, 
school health, home visitor, lead poisoning screening, child 
care resources and referral, child care service development, 
child trust fund, migrant child care, dependent child care, 
headstart and community resource program. 
    In developing a plan for a statewide integrated children's 
database the joint planning team must: 
    (1) conduct a high-level needs analysis of service delivery 
and reporting and decision making areas; 
    (2) catalogue current information systems; 
    (3) establish outcomes for developing systems; 
    (4) analyze the needs of individuals and organizations that 
will use the system; and 
    (5) identify barriers to sharing information and recommend 
changes to the Data Practices Act to remove those barriers. 
    Subd. 2.  [DATA STORAGE.] The departments of education, 
administration, corrections, health and human services, and the 
office of strategic and long-range planning must provide to the 
legislature by January 30, 1995, a plan for storing essential 
data elements for family service centers to use.  This plan will 
include reporting of data to the state as a by-product of both 
family service and school district internal operations. 
    Subd. 3.  [AGENCY SYSTEM INTEGRATION.] Any state agency or 
department with programs serving children that is designing or 
redesigning its information system must ensure that the 
resulting information system can be fully integrated into the 
statewide children's service database by June 30, 1995.  
Agencies or departments must submit plans to design or redesign 
information systems for review by the information policy office 
to ensure that agency or department information can be fully 
integrated into the statewide children's service database.  
    Sec. 41.  [REPORTS.] 
    By February 15, 1994, the children's cabinet shall report 
to the chairs of the family services and education committees of 
the legislature and to the legislative commission on children, 
youth, and families the number of plans approved under section 
10, subdivision 5, the amounts of the grants distributed, a 
brief description of the proposals, and the status of the 
collaboratives established under section 41, subdivision 3. 
    Sec. 42.  [NORTH BRANCH COMMUNITY PARTICIPATION SCHOOL.] 
    Subdivision 1.  [PILOT PROGRAM.] Independent school 
district No. 138, North Branch, shall establish a pilot 
outcome-based community participation school with the following 
components: 
    (1) educational opportunities for preschool through grade 6 
learners; 
    (2) social services located at the school, including 
student and family counseling and appropriate referrals when 
necessary; 
    (3) programs that focus on self-esteem, conflict 
resolution, violence prevention, truancy, and other related 
issues; 
    (4) health services located at the school to address the 
health needs of learners, including prevention programs designed 
to reduce health-related problems caused by drug and alcohol 
use, poor nutrition, and other factors; 
    (5) community education programs designed to assist parents 
with the challenges of parenting in today's society; 
    (6) regular contact with the families of students by 
teachers, social workers, nurses, and other school personnel 
through home visits, conferences at school or the workplaces of 
family members, telephone contact, and written communication; 
and 
    (7) a Saturday program designed to address issues such as 
remedial work and family dynamics that impact student learning, 
or to provide other learning opportunities for students and 
their families. 
    Subd. 2.  [FAMILY-SCHOOL PARTNERSHIP.] The families of 
students attending the community participation school must agree 
to participate in the program by: 
    (1) supporting the philosophy of the school; 
    (2) serving as volunteers at the school during the day, the 
evening, or on weekends; 
    (3) attending family training and information sessions on 
topics such as conflict resolution and parenting skills; and 
    (4) emphasizing the value of education at home through 
activities such as reading to their children and encouraging 
them to read, taking them to libraries, and reducing the 
family's television viewing. 
    Subd. 3.  [COMMUNITY LEARNING COMMITTEE.] A community 
learning committee shall be formed with representatives from the 
school district, city council, county, student groups, and 
others to develop a community plan for the implementation of 
this pilot program and to identify strategies for enhancing 
community recognition of the value that needs to be placed on 
education.  The committee shall address how agencies will 
combine resources to collaborate on service delivery to carry 
out the purposes of the pilot school.  The school board of 
independent school district No. 138 shall convene the initial 
meeting of this committee. 
    Subd. 4.  [TIMELINES.] (a) The board of independent school 
district No. 138 shall establish this program no later than 
January 1, 1994.  The community learning committee must be 
convened within 30 days following enactment of this section. 
    (b) By July 15, 1994, independent school district No. 138 
shall submit a report on the pilot program's status to the 
commissioner of education, the state board of education, and the 
education committees of the legislature. 
    (c) By February 1, 1995, independent school district No. 
138 shall submit a report on the program's initial year to the 
commissioner of education, the state board of education, and the 
education committees of the legislature.  The report must 
document the impact of the pilot program on student performance 
in meeting outcomes, changes in student social behaviors and 
student health, family involvement in the school and the impact 
of that involvement, agency collaboration in providing 
school-based services, and other community participation. 
    Sec. 43.  [COLLABORATIVE GRANTS.] 
    Subdivision 1.  [APPLICATIONS FOR COLLABORATIVE PLANNING 
GRANTS.] By August 1, 1993, the children's cabinet shall publish 
procedures for applying for and awarding planning grants under 
subdivision 2.  Local collaboratives may obtain an application 
from the commissioner of education, human services, or health 
and must submit the completed application to the children's 
cabinet.  The applicant must indicate the amount of the planning 
grant being sought and how the applicant will use the grant 
funds. 
    Subd. 2.  [DISTRIBUTION OF PLANNING GRANTS.] By February 1, 
1994, the children's cabinet must ensure that planning grant 
funds are distributed to collaboratives with approved 
applications. The funds must be geographically distributed 
throughout the state and balanced between the seven-county 
metropolitan area and elsewhere throughout the state.  No more 
than 2.5 percent of the appropriation is available to the state 
to administer and evaluate the grant program.  An applicant 
receiving a grant in fiscal year 1994 may use the grant money in 
fiscal year 1994 and may carry forward any unencumbered money 
into fiscal year 1995 or 1996.  An applicant receiving a grant 
in fiscal year 1995 may use the grant money in fiscal year 1995 
and may carry forward any unencumbered money into fiscal year 
1996. 
    Subd. 3.  [COLLABORATIVE IMPLEMENTATION GRANTS; 
EVALUATION.] To apply for an implementation grant, a 
collaborative must submit a plan to the children's cabinet by 
either December 1, 1993, or December 1, 1994.  The plan must 
indicate the amount of the implementation grant requested and 
how the grant funds will be used.  Grant recipients must use the 
grant money solely to provide direct services to children and 
families.  Up to one-half of the appropriation available for 
implementation grants may be awarded to collaboratives with 
plans received by December 1, 1993, that the cabinet approves. 
The remaining appropriation is available for grants to 
collaboratives with plans received by December 1, 1994.  The 
children's cabinet shall review a plan and notify the 
collaborative within 60 days of receiving the plan whether or 
not the plan has been approved.  No more than 2.5 percent of the 
appropriation is available to the state to administer and 
evaluate the grant program.  An applicant receiving a grant in 
fiscal year 1994 may use the grant money in fiscal year 1994 and 
may carry forward any unencumbered money into fiscal year 1995 
or 1996.  An applicant receiving a grant in fiscal year 1995 may 
use the grant money in fiscal year 1995 and may carry forward 
any unencumbered money into fiscal year 1996. 
    Subd. 4.  [REPORTS BY COLLABORATIVES.] Collaboratives 
receiving implementation grants must submit a report to the 
children's cabinet.  The report shall describe the progress the 
collaborative made toward implementing the local plan, how funds 
received under subdivision 3 were used, the number and type of 
clients served, and the types of services provided.  The report 
shall be submitted to the children's cabinet by December 31, 
1994, by collaboratives whose local plan was approved no later 
than February 1, 1994, and by December 31, 1995, for those 
collaboratives whose local plan was approved no later than 
February 1, 1995.  Within two years of the date on which a 
collaborative receives an implementation grant, a collaborative 
shall submit a report to the children's cabinet describing the 
extent to which the collaborative achieved the outcomes 
developed under Minnesota Statutes, section 121.8355, 
subdivision 1, clause (1). 
    Sec. 44.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
or other named fund to the department of education for the 
fiscal years designated. 
    Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
education aid according to Minnesota Statutes, section 124.26, 
in fiscal year 1994 and 124.2601 in fiscal year 1995:  
     $5,904,000     .....    1994
     $7,998,000     .....    1995 
    The 1994 appropriation includes $911,000 for 1993 and 
$4,993,000 for 1994.  
    The 1995 appropriation includes $880,000 for 1994 and 
$7,118,000 for 1995.  
    Up to $275,000 each year may be used for contracts with 
private, nonprofit organizations for approved programs.  
    Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
adults with disabilities programs according to Minnesota 
Statutes, section 124.2715: 
     $670,000    .....    1994 
     $670,000    .....    1995 
    Any balance in the first year does not cancel and is 
available for the second year. 
    Subd. 4.  [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with 
funds received under Minnesota Statutes, section 171.29, 
subdivision 2, paragraph (b), clause (4): 
     $514,000     .....     1994
     $514,000     .....     1995
    (b) These appropriations are from the alcohol-impaired 
driver account of the special revenue fund.  Any funds credited 
for the department of education to the alcohol-impaired driver 
account of the special revenue fund in excess of the amounts 
appropriated in this subdivision are appropriated to the 
department of education and available in fiscal years 1994 and 
1995. 
    (c) Up to $226,000 each year may be used by the department 
of education to contract for services to school districts 
stressing the dangers of driving after consuming alcohol.  Of 
this amount, up to $133,000 may be used for kids reaching kids 
programs and up to $93,000 may be used for the driving under the 
influence demonstration program.  No more than five percent of 
the amount received may be used for administrative costs by the 
contract recipients. 
    (d) Up to $88,000 each year may be used for grants to 
support student-centered programs to discourage driving after 
consuming alcohol. 
    (e) Up to $200,000 and any additional funds each year may 
be used for chemical abuse prevention grants. 
    Subd. 5.  [COMMUNITY EDUCATION AID.] For community 
education aid according to Minnesota Statutes, section 124.2713: 
     $3,182,000      .....    1994 
     $3,319,000      .....    1995 
    The 1994 appropriation includes $496,000 for 1993 and 
$2,686,000 for 1994.  
    The 1995 appropriation includes $474,000 for 1994 and 
$2,845,000 for 1995.  
    Subd. 6.  [ADULT GRADUATION AID.] For adult graduation aid: 
     $1,827,000     .....     1994
     $1,986,000     .....     1995
    The 1994 appropriation includes $204,000 for 1993 and 
$1,623,000 for 1994.  
    The 1995 appropriation includes $286,000 for 1994 and 
$1,700,000 for 1995. 
    In the event that the appropriation in either year is 
insufficient, the adult graduation aid paid to a school district 
and to a higher education institution shall be prorated equally. 
    Subd. 7.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
health and developmental screening aid according to Minnesota 
Statutes, section 123.7045: 
     $1,558,000     .....     1994
     $1,550,000     .....     1995
    The 1994 appropriation includes $240,000 for 1993 and 
$1,318,000 for 1994. 
    The 1995 appropriation includes $232,000 for 1994 and 
$1,318,000 for 1995. 
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 8.  [HEARING IMPAIRED ADULTS.] For programs for 
hearing impaired adults according to Minnesota Statutes, section 
121.201: 
     $70,000     .....     1994
     $70,000     .....     1995
    Subd. 9.  [VIOLENCE PREVENTION GRANTS.] For violence 
prevention education grants under Minnesota Statutes, section 
126.78: 
     $1,000,000     .....     1994
    Notwithstanding the geographical distribution requirement 
in Minnesota Statutes, section 126.78, subdivision 3, the 
commissioner shall give priority in awarding grants in fiscal 
year 1994 to eligible school districts that did not receive a 
grant in fiscal year 1993. 
    Subd. 10.  [GED TESTS.] For payment of 60 percent of the 
costs of GED tests: 
     $180,000     .....     1994
     $180,000     .....     1995
    Subd. 11.  [GED COORDINATION.] For statewide coordination 
of the GED program: 
     $60,000     .....     1994
     $60,000     .....     1995
    Subd. 12.  [WAY TO GROW.] For grants for existing way to 
grow programs according to Minnesota Statutes, section 145.926: 
     $950,000     .....     1994
    This appropriation is available until June 30, 1995.  
    Subd. 13.  [SURVEY.] For a survey of students, including 
those attending alternative education programs: 
     $150,000     .....     1995
    Subd. 14.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For 
early childhood family education aid according to Minnesota 
Statutes, section 124.2711: 
     $13,464,000      .....    1994 
     $13,876,000       .....    1995 
    The 1994 appropriation includes $1,875,000 for 1993 and 
$11,589,000 for 1994.  
    The 1995 appropriation includes $2,044,000 for 1994 and 
$11,832,000 for 1995.  
    $10,000 each year may be spent for evaluation of ECFE 
programs. 
    Subd. 15.  [ECFE HOME VISITING.] For the early childhood 
family education program home visiting component according to 
Minnesota Statutes, section 121.882, subdivision 2b: 
     $450,000     .....     1994 
    The entire amount is available in 1994. 
    Subd. 16.  [LEARNING READINESS PROGRAM REVENUE.] For 
revenue for learning readiness programs: 
     $9,495,000     .....     1994
     $9,505,000     .....     1995
    The 1994 appropriation includes $1,412,000 for 1993 and 
$8,083,000 for 1994.  
    The 1995 appropriation includes $1,426,000 for 1994 and 
$8,079,000 for 1995.  
    Any balance in the first year does not cancel but is 
available in the second year. 
    $10,000 each year may be spent for evaluation of learning 
readiness programs. 
    Subd. 17.  [VIOLENCE PREVENTION COUNCILS.] (a) For grants 
to cities, counties, and school boards for community violence 
prevention councils: 
     $200,000     .....     1994
     $200,000     .....     1995
    (b) During the biennium, councils shall identify community 
needs and resources for violence prevention and development 
services that address community needs related to violence 
prevention. 
    (c) Any of the funds awarded to school districts but not 
expended in fiscal year 1994, are available to the award 
recipient in fiscal year 1995 for the same purposes and 
activities. 
    (d) Any portion of the 1994 appropriation not spent in 1994 
is available in 1995. 
    (e) One hundred percent of this aid must be paid in the 
current fiscal year in the same manner as specified in Minnesota 
Statutes, section 124.195, subdivision 9. 
    Subd. 18.  [OMBUDSPERSONS.] 
     $80,000     .....     1994
    The appropriation is to be distributed in equal amounts to 
the Indian Affairs Council, the Spanish-Speaking Affairs 
Council, the Council on Black Minnesotans, and the Council on 
Asian-Pacific Minnesotans, for purposes of funding the 
activities of the ombudspersons authorized by Minnesota 
Statutes, sections 257.0755 to 257.0768.  Any balance in 1994 is 
available until June 30, 1995. 
    Subd. 19.  [NORTH BRANCH GRANT.] For a grant to independent 
school district No. 138, North Branch, to develop a community 
school program: 
      $200,000    .....    1994
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 20.  [LOCAL COLLABORATIVES.] For grants to local 
collaboratives according to section 43, subdivisions 2 and 3: 
      $5,000,000    .....    1994
    $1,500,000 is for collaborative planning grants. 
    Up to $130,000 of the sum listed above is for the 
legislative coordinating commission for purposes of carrying out 
the responsibilities under Minnesota Statutes, section 3.873. 
    Up to $400,000 is for the office of strategic and 
long-range planning for development of a statewide children's 
service database and for staffing the children's cabinet. 
    Any portion of this sum not spent on planning grants shall 
be used for implementation grants. 
    $3,500,000 is for collaborative implementation grants. 
    The amounts appropriated under this subdivision do not 
cancel but are available until June 30, 1996. 
    Subd. 21.  [EXTENDED DAY AID.] For extended day aid 
according to Minnesota Statutes, section 124.2716: 
     $340,000     .....     1995
    Sec. 45.  [REPEALER.] 
    Minnesota Statutes 1992, sections 126.22, subdivision 2a; 
and 145.926, are repealed.  
    Sec. 46.  [EFFECTIVE DATES.] 
    Section 33 is effective July 1, 1993, and apply to the 
1993-1994 school year and later school years.  Sections 26 and 
30 are effective for the 1993, payable 1994 levies. 

                               ARTICLE 5

                               FACILITIES
    Section 1.  Minnesota Statutes 1992, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 8.  [ENERGY CONSERVATION FUND TRANSFERS.] A school 
district that has contracted with a provider of energy 
conservation improvements, or a school district that has 
received a loan from a public utility to make energy 
conservation improvements may annually transfer from the general 
fund to the capital expenditure fund, the amount related to the 
energy savings of the energy conservation improvements. 
    Sec. 2.  Minnesota Statutes 1992, section 123.36, is 
amended by adding a subdivision to read: 
    Subd. 15.  [USE OF BUILDINGS BY LOWER GRADES.] (a) In 
addition to the protections provided in existing building and 
fire code rules and standards, the following alternatives apply 
for existing school buildings: 
    (1) rooms occupied by preschool, kindergarten, and first 
and second grade students for classrooms, latchkey, day care, 
early childhood family education or teen parent or similar 
programs may be located on any floor level below the fourth 
story of a school building if the building is protected 
throughout by a complete automatic sprinkler system and a 
complete automatic fire alarm system consisting of automatic 
smoke detection throughout the exit system and approved smoke 
detection in all rooms and areas other than classrooms and 
offices; 
    (2) rooms used by preschool, kindergarten, or first grade 
students for classrooms, latchkey, day care, early childhood 
family education or teen parent or similar programs, must be 
located on the story of exit discharge, and rooms used by second 
grade students, for any purpose, must be located on the story of 
exit discharge or one story above unless one of the following 
conditions is met: 
    (i) a complete automatic sprinkler system is provided 
throughout the building, the use of the affected room or space 
is limited to one grade level at a time, and exiting is provided 
from the affected room or space which is independent from the 
exiting system used by older students; or 
    (ii) a complete approved automatic fire alarm system is 
installed throughout the building consisting of automatic smoke 
detection throughout the exit system and approved detection in 
all rooms and areas other than classrooms and offices, the use 
of the affected room or space is limited to one grade level at a 
time and exiting is provided from the affected room or space 
which is independent from the exiting system used by older 
students. 
    (b) For purposes of paragraph (a), clause (2), pupils from 
second grade down are considered one grade level. 
    (c) Accessory spaces, including gymnasiums, cafeterias, 
media centers, auditoriums, libraries, and band and choir rooms, 
which are used on an occasional basis by preschool, 
kindergarten, and first and second grade students are permitted 
to be located one level above or one level below the story of 
exit discharge, provided the building is protected throughout by 
a complete automatic sprinkler system or a complete approved 
corridor smoke detection system. 
    (d) Paragraphs (a) and (c) supersede any contrary 
provisions of the state fire code or state building code and 
rules relating to those codes must be amended by the state 
agencies having jurisdiction of them. 
    (e) Paragraphs (a) to (d) are effective for new school 
buildings beginning July 1, 1994. 
    Sec. 3.  [124.239] [ALTERNATIVE FACILITIES BONDING AND LEVY 
PROGRAM.] 
    Subdivision 1.  [TO QUALIFY.] An independent or special 
school district qualifies to participate in the alternative 
facilities bonding and levy program if the district has: 
    (1) more than 66 students per grade; 
    (2) over 1,850,000 square feet of space; 
    (3) average age of building space is 20 years or older; 
    (4) insufficient funds from projected health and safety 
revenue and capital facilities revenue to meet the requirements 
for deferred maintenance, to make accessibility improvements, or 
to make fire, safety, or health repairs; and 
    (5) a ten-year facility plan approved by the commissioner 
according to subdivision 2. 
    Subd. 2.  [TEN-YEAR PLAN.] (a) A qualifying district must 
have a ten-year facility plan approved by the commissioner that 
includes an inventory of projects and costs that would be 
eligible for: 
    (1) health and safety revenue; 
    (2) disabled access levy; and 
    (3) deferred capital expenditures and maintenance projects 
necessary to prevent further erosion of facilities. 
    (b) The school district must: 
    (1) annually update the plan; 
    (2) biennially submit a facility maintenance plan; and 
    (3) indicate whether the district will issue bonds to 
finance the plan or levy for the costs. 
    Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
approval of its school board and the commissioner, may issue 
general obligation bonds under this section to finance approved 
facilities plans.  Chapter 475, except sections 475.58 and 
475.59, must be complied with.  The district may levy under 
subdivision 5 for the debt service revenue.  The authority to 
issue bonds under this section is in addition to any bonding 
authority authorized by this chapter, or other law.  The amount 
of bonding authority authorized under this section must be 
disregarded in calculating the bonding or net debt limits of 
this chapter, or any other law other than section 475.53, 
subdivision 4. 
    Subd. 4.  [LEVY PROHIBITED FOR CAPITAL PROJECTS.] A 
district that participates in the alternative facilities bonding 
and levy program is not eligible to levy and cannot receive aid 
for any capital projects under sections 124.83 and 124.84.  A 
district may levy for health and safety environmental management 
costs and health and safety regulatory, hazard assessment, 
record keeping, and maintenance programs as defined in section 
19 and approved by the commissioner. 
    Subd. 5.  [LEVY AUTHORIZED.] A district, after local board 
approval, may levy for costs related to an approved facility 
plan as follows:  
    (a) if the district has indicated to the commissioner that 
bonds will be issued, the district may levy for the principal 
and interest payments on outstanding bonds issued according to 
subdivision 3; or 
    (b) if the district has indicated to the commissioner that 
the plan will be funded through levy, the district may levy 
according to the schedule approved in the plan. 
    Subd. 6.  [SEPARATE ACCOUNT.] A district must establish a 
separate account under the uniform financial accounting and 
reporting standards (UFARS) for this program.  If the district's 
levy exceeds the necessary interest and principal payments and 
noncapital health and safety costs, the district must reserve 
the revenue to replace future bonding authority, prepay bonds 
authorized under this program, or make payments on principal and 
interest. 
    Sec. 4.  Minnesota Statutes 1992, section 124.243, 
subdivision 1, is amended to read: 
    Subdivision 1.  A school board annually shall, by 
resolution adopted by a two-thirds vote of its governing body 
and after notice and hearing, adopt a capital expenditure 
facilities program.  The district shall publish notice of the 
hearing in its official newspaper at least 20 days before the 
hearing.  A school board may amend its capital expenditure 
facilities program at any time.  The program shall include plans 
for repair and restoration of existing district-owned facilities 
and plans for new construction.  Plans for new construction and 
plans for repairs and restoration funded through bond proceeds 
must be included in the program before notice of the district's 
intended debt service levy is given to the commissioner for the 
project costs to be included in the district's required debt 
service levy under section 124.95 for that year.  The program 
shall include specific provisions to correct any existing health 
and safety hazards.  The program must set forth the facilities 
to be improved, a schedule of work not more than five years from 
the adoption or amendment of the program, the estimated cost of 
the improvements to be made, the estimated property tax effects 
of the program for the next fiscal year, and the proposed 
methods of financing the program.  The program must be reviewed 
by the district biennially before July 1 of each odd-numbered 
year, after notice and hearing.  After the review, the program 
may be amended to include the ensuing five-year period.  
    Sec. 5.  Minnesota Statutes 1992, section 124.243, 
subdivision 2, is amended to read: 
    Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) For 
fiscal years 1994 and 1995, capital expenditure facilities 
revenue for a district equals $128 times its actual pupil units 
for the school year. 
    (b) For fiscal years 1996 and later, capital expenditure 
facilities revenue for a district equals $100 times the 
district's maintenance cost index times its actual pupil units 
for the school year. 
    (c) A district's capital expenditure facilities revenue for 
a school year shall be reduced if the unreserved balance in the 
capital expenditure facilities account on June 30 of the prior 
school year exceeds $270 $675 times the fund balance pupil units 
in the prior year as defined in section 124A.26, subdivision 1.  
If a district's capital expenditure facilities revenue is 
reduced, the reduction equals the lesser of (1) the amount that 
the unreserved balance in the capital expenditure facilities 
account on June 30 of the prior year exceeds $270 $675 times the 
fund balance pupil units in the prior year, or (2) the capital 
expenditure facilities revenue for that year. 
    (d) For 1996 and later fiscal years, the previous formula 
revenue equals the amount of revenue computed for the district 
according to section 124.243 for fiscal year 1995. 
    (e) Notwithstanding paragraph (b), for fiscal year 1996, 
the revenue for each district equals 25 percent of the amount 
determined in paragraph (b) plus 75 percent of the previous 
formula revenue. 
    (f) Notwithstanding paragraph (b), for fiscal year 1997, 
the revenue for each district equals 50 percent of the amount 
determined in paragraph (b) plus 50 percent of the previous 
formula revenue. 
    (g) Notwithstanding paragraph (b), for fiscal year 1998, 
the revenue for each district equals 75 percent of the amount 
determined in paragraph (b) plus 25 percent of the previous 
formula revenue. 
    (h) The revenue in paragraph (b) for a district that 
operates a program under section 121.585, is increased by an 
amount equal to $15 times the number of actual pupil units at 
the site where the program is implemented. 
    Sec. 6.  Minnesota Statutes 1992, section 124.243, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [EXCEPTION TO FUND BALANCE REDUCTION.] A 
district may apply to the commissioner for approval for an 
unreserved fund balance in its capital expenditure facilities 
account that exceeds $270 per fund balance pupil unit for a 
period not to exceed three five years.  If the commissioner 
approves the district's application, the district's capital 
expenditure facilities revenue shall not be reduced according to 
subdivision 2.  The commissioner may approve a district's 
application for an exception only if the use of the district's 
capital expenditure facilities funds are consistent with plans 
adopted according to subdivision 1. 
    Sec. 7.  Minnesota Statutes 1992, section 124.243, 
subdivision 6, is amended to read: 
    Subd. 6.  [USES OF REVENUE.] Capital expenditure facilities 
revenue may be used only for the following purposes: 
    (1) to acquire land for school purposes; 
    (2) to acquire or construct buildings for school purposes, 
if approved by the commissioner of education according to 
applicable statutes and rules up to $400,000; 
    (3) to rent or lease buildings, including the costs of 
building repair or improvement that are part of a lease 
agreement; 
    (4) to improve and repair school sites and buildings, and 
equip or reequip school buildings with permanent attached 
fixtures; 
    (5) for a surplus school building that is used 
substantially for a public nonschool purpose; 
    (6) to eliminate barriers or increase access to school 
buildings by individuals with a disability; 
    (7) to bring school buildings into compliance with the 
uniform fire code adopted according to chapter 299F; 
    (8) to remove asbestos from school buildings, encapsulate 
asbestos, or make asbestos-related repairs; 
    (9) to clean up and dispose of polychlorinated biphenyls 
found in school buildings; 
    (10) to clean up, remove, dispose of, and make repairs 
related to storing heating fuel or transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01; 
    (11) for energy audits for school buildings and to modify 
buildings if the audit indicates the cost of the modification 
can be recovered within ten years; 
    (12) to improve buildings that are leased according to 
section 123.36, subdivision 10; 
    (13) to pay special assessments levied against school 
property but not to pay assessments for service charges; 
    (14) to pay principal and interest on state loans for 
energy conservation according to section 216C.37 or loans made 
under the northeast Minnesota economic protection trust fund act 
according to sections 298.292 to 298.298; and 
    (15) to purchase or lease interactive telecommunications 
equipment. 
    Sec. 8.  Minnesota Statutes 1992, section 124.243, 
subdivision 8, is amended to read: 
    Subd. 8.  [FUND TRANSFERS.] (a) Money in the account for 
capital expenditure facilities revenue must not be transferred 
into any other account or fund, except that as specified in this 
subdivision. 
    (b) The school board may, by resolution, transfer money 
into the debt redemption fund to pay the amounts needed to meet, 
when due, principal and interest payments on certain obligations 
issued according to chapter 475. 
    (c) A school board may transfer all or a part of its 
capital expenditure facilities revenue to its capital 
expenditure equipment account if: 
    (1) the district has only one facility and that facility is 
less than ten years old; or 
    (2) the district receives approval from the commissioner to 
make the transfer. 
    (d) In considering approval of a transfer under paragraph 
(c), clause (2), the commissioner must consider the district's 
facility needs. 
    Sec. 9.  Minnesota Statutes 1992, section 124.243, is 
amended by adding a subdivision to read: 
    Subd. 12.  [MAINTENANCE COST INDEX.] (a) A district's 
maintenance cost index is equal to the ratio of: 
    (1) the total weighted square footage for all eligible 
district-owned facilities; and 
    (2) the total unweighted square footage of these facilities.
    (b) The department shall determine a district's maintenance 
cost index annually.  Eligible district owned facilities shall 
include only instructional or administrative square footage 
owned by the district.  The commissioner of education may adjust 
the age of a building or addition for major renovation projects. 
    (c) The square footage weighting factor for each original 
building or addition equals the lesser of: 
    (1) one plus the ratio of the age in years to 100; or 
    (2) 1.5. 
    (d) The weighted square footage for each original building 
or addition equals the product of the unweighted square footage 
times the square footage weighting factor.  
    Sec. 10.  Minnesota Statutes 1992, section 124.244, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE AMOUNT.] (a) For fiscal years 1994 
and 1995, the capital expenditure equipment revenue for each 
district equals $63 times its actual pupil units counted 
according to section 124.17, subdivision 1, for the school year. 
    (b) For fiscal years 1996 and later, the capital 
expenditure equipment revenue for each district equals $68 times 
its actual pupil units for the school year.  
    Sec. 11.  [124.2455] [BONDS FOR CERTAIN CAPITAL 
FACILITIES.] 
    (a) In addition to other bonding authority, with approval 
of the commissioner, a school district may issue general 
obligation bonds for certain capital projects under this 
section.  The bonds must be used only to make capital 
improvements including: 
    (1) under section 124.243, subdivision 6, capital 
expenditure facilities revenue uses specified in clauses (4), 
(6), (7), (8), (9), and (10); 
    (2) the cost of energy modifications; 
    (3) improving handicap accessibility to school buildings; 
and 
    (4) bringing school buildings into compliance with life and 
safety codes and fire codes.  
    (b) Before a district issues bonds under this subdivision, 
it must publish notice of the intended projects, the amount of 
the bond issue, and the total amount of district indebtedness.  
    (c) A bond issue tentatively authorized by the board under 
this subdivision becomes finally authorized unless a petition 
signed by more than 15 percent of the registered voters of the 
school district is filed with the school board within 30 days of 
the board's adoption of a resolution stating the board's 
intention to issue bonds.  The percentage is to be determined 
with reference to the number of registered voters in the school 
district on the last day before the petition is filed with the 
school board.  The petition must call for a referendum on the 
question of whether to issue the bonds for the projects under 
this section.  The approval of 50 percent plus one of those 
voting on the question is required to pass a referendum 
authorized by this section. 
    (d) The bonds may be issued in a principal amount, that 
when combined with interest thereon, will be paid off with not 
more than 50 percent of current and anticipated revenue for 
capital facilities under this section or a successor section for 
the current year plus projected revenue not greater than that of 
the current year for the next ten years.  Once finally 
authorized, the district must set aside the lesser of the amount 
necessary to make the principal and interest payments or 50 
percent of the current year's revenue for capital facilities 
under this section or a successor section each year in a 
separate account until all principal and interest on the bonds 
is paid.  The district must annually transfer this amount from 
its capital fund to the debt redemption fund.  The bonds must be 
paid off within ten years of issuance.  The bonds must be issued 
in compliance with chapter 475, except as otherwise provided in 
this section. 
    Sec. 12.  Minnesota Statutes 1992, section 124.37, is 
amended to read: 
    124.37 [POLICY AND PURPOSE.] 
    The rates of increase in school population in Minnesota and 
population shifts and economic changes in recent years, and 
anticipated in future years, have required and will require 
large expenditures for performing the duty of the state and its 
subdivisions to provide a general and uniform system of public 
schools.  The state policy has been to require these school 
costs to be borne primarily by the local subdivisions.  In most 
instances the local subdivisions have been, and will be, able to 
provide the required funds by local taxation as supplemented by 
the aids usually given to all school districts from state income 
tax and other state aids.  There are, however, exceptional cases 
due to local conditions not found in most other districts where, 
either temporarily or over a considerable period of years, the 
costs will exceed the maximum which the local taxpayers can be 
reasonably expected to bear.  In some districts having bonds of 
several issues outstanding, debt service tax levy requirements 
are excessive for some years because of heavy bond principal 
payments accumulating in some of the years due to overlapping or 
short term issues.  The policy and purpose of sections 124.36 to 
124.47 is to utilize the credit of the state, to a limited 
degree, to relieve those school districts, but only those, where 
the maximum effort by the district is inadequate to provide the 
necessary money.  It is also the purpose of sections 124.36 to 
124.47 to promote efficient use of school buildings.  To that 
end, a district that receives a maximum effort loan is 
encouraged to design and use its facility to integrate social 
services and library services. 
    Sec. 13.  Minnesota Statutes 1992, section 124.38, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [LEVY.] "Levy" means a district's net debt 
service levy after the reduction of debt service equalization 
aid under section 124.95, subdivision 5.  For taxes payable in 
1994 and later, each district's maximum effort debt service levy 
for purposes of subdivision 7, shall be reduced by an equal 
number of percentage points if the commissioner determines that 
the levy reduction will not result in a statewide property tax 
as would be required under Minnesota Statutes 1992, section 
124.46, subdivision 3.  A district's levy that is adjusted under 
this section shall not be reduced below 18.74 percent of the 
district's adjusted net tax capacity. 
    Sec. 14.  Minnesota Statutes 1992, section 124.431, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CAPITAL LOAN REQUESTS AND USES.] Capital 
loans are available only to qualifying districts.  Capital loans 
must not be used for the construction of swimming pools, ice 
arenas, athletic facilities, auditoriums, day care centers, bus 
garages, or heating system improvements.  Proceeds of the loans 
may be used only for sites for education facilities and for 
acquiring, bettering, furnishing, or equipping education 
facilities.  Contracts must be entered into within 18 months 
after the date on which each loan is granted.  For purposes of 
this section, "education facilities" includes space for Head 
Start programs and social service programs. 
    Sec. 15.  Minnesota Statutes 1992, section 124.431, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
1992, a district is not eligible for a capital loan unless the 
district's estimated net debt tax rate as computed by the 
commissioner after debt service equalization aid would be more 
than 20 percent of adjusted net tax capacity.  The estimate must 
assume a 20-year maturity schedule for new debt. 
    Sec. 16.  Minnesota Statutes 1992, section 124.431, 
subdivision 2, is amended to read: 
    Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
school district or a joint powers district that intends to apply 
for a capital loan must submit a proposal to the commissioner 
for review and comment according to section 121.15 on or before 
July 1.  The commissioner must prepare a review and comment on 
the proposed facility, regardless of the amount of the capital 
expenditure required to construct the facility.  In addition to 
the information provided under section 121.15, subdivision 7, 
the commissioner shall consider the following criteria in 
determining whether to make a positive review and comment.  
     (a) To grant a positive review and comment the commissioner 
must determine that all of the following conditions are met: 
     (1) the facilities are needed for pupils for whom no 
adequate facilities exist or will exist; 
     (2) the district will serve, on average, at least 80 pupils 
per grade or is eligible for sparsity revenue; 
     (3) no form of cooperation with another district would 
provide the necessary facilities; 
     (4) the facilities are comparable in size and quality to 
facilities recently constructed in other districts that have 
similar enrollments; 
     (5) the facilities are comparable in size and quality to 
facilities recently constructed in other districts that are 
financed without a capital loan; 
     (6) the district is projected to maintain or increase its 
average daily membership over the next five years or is eligible 
for sparsity revenue; 
    (7) the current facility poses a threat to the life, 
health, and safety of pupils, and cannot reasonably be brought 
into compliance with fire, health, or life safety codes; 
    (8) the district has made a good faith effort, as evidenced 
by its maintenance expenditures, to adequately maintain the 
existing facility during the previous ten years and to comply 
with fire, health, and life safety codes and state and federal 
requirements for handicapped accessibility; and 
    (9) the district has made a good faith effort to encourage 
integration of social service programs within the new facility; 
and 
    (10) evaluations by school boards of adjacent districts 
have been received. 
    (b) The commissioner may grant a negative review and 
comment if: 
    (1) the state demographer has examined the population of 
the communities to be served by the facility and determined that 
the communities have not grown during the previous five years; 
    (2) the state demographer determines that the economic and 
population bases of the communities to be served by the facility 
are not likely to grow or to remain at a level sufficient, 
during the next ten years, to ensure use of the entire facility; 
    (3) the need for facilities could be met within the 
district or adjacent districts at a comparable cost by leasing, 
repairing, remodeling, or sharing existing facilities or by 
using temporary facilities; 
    (4) the district plans do not include cooperation and 
collaboration with health and human services agencies and other 
political subdivisions; or 
     (5) if the application is for new construction, an existing 
facility that would meet the district's needs could be purchased 
at a comparable cost from any other source within the area. 
    Sec. 17.  Minnesota Statutes 1992, section 124.431, 
subdivision 14, is amended to read: 
    Subd. 14.  [BOND SALE LIMITATIONS.] A district having an 
outstanding state loan must not issue and sell any bonds on the 
public market, except to refund state loans, unless it agrees to 
make the maximum effort debt service levy in each later year at 
the higher rate provided in section 124.38, subdivision 7, and 
unless it schedules the maturities of the bonds according to 
section 475.54, subdivision 2.  A district that refunds bonds at 
a lower interest rate may continue to make the maximum effort 
debt service levy in each later year at the current rate 
provided in section 124.38, subdivision 7, if the district can 
demonstrate to the commissioner's satisfaction that the 
district's repayments of the state loan will not be reduced 
below the previous year's level.  The district shall report each 
sale to the commissioner of education. 
    After a district's capital loan has been outstanding for 20 
years, the district must not issue bonds on the public market 
except to refund the loan. 
    Sec. 18.  Minnesota Statutes 1992, section 124.494, 
subdivision 1, is amended to read: 
    Subdivision 1.  [QUALIFICATION.] Any group of school 
districts that meets the criteria required under subdivision 2 
may apply for an incentive grant in an amount not to exceed the 
lesser of $6,000,000 $5,000,000 or 75 percent of the approved 
construction costs of a cooperative secondary education facility.
    Sec. 19.  Minnesota Statutes 1992, section 124.494, 
subdivision 2, is amended to read: 
    Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any group of 
districts that submits an application for a grant shall submit a 
proposal to the commissioner for review and comment under 
section 121.15, and the commissioner shall prepare a review and 
comment on the proposed facility, regardless of the amount of 
the capital expenditure required to acquire, construct, remodel 
or improve the secondary facility.  The commissioner must not 
approve an application for an incentive grant for any secondary 
facility unless the facility receives a favorable review and 
comment under section 121.15 and the following criteria are met: 
    (1) a minimum of three or more districts, with kindergarten 
to grade 12 enrollments in each district of no more than 1,200 
pupils, enter into a joint powers agreement; 
    (2) a joint powers board representing all participating 
districts is established under section 471.59 to govern the 
cooperative secondary facility; 
    (3) the planned secondary facility will result in the joint 
powers district meeting the requirements of Minnesota Rules, 
parts 3500.2010 and 3500.2110; 
     (4) at least 198 pupils would be served in grades 10 to 12, 
264 pupils would be served in grades 9 to 12, or 396 pupils 
would be served in grades 7 to 12; 
     (5) no more than one superintendent is employed by the 
joint powers board as a result of the cooperative secondary 
facility agreement; 
    (6) a statement of need is submitted, that may include 
reasons why the current secondary facilities are inadequate, 
unsafe or inaccessible to the handicapped; 
    (7) an educational plan is prepared, that includes input 
from both community and professional staff; 
    (8) a combined seniority list for all participating 
districts is developed by the joint powers board; 
    (9) an education program is developed that provides for 
more learning opportunities and course offerings, including the 
offering of advanced placement courses, for students than is 
currently available in any single member district; 
    (10) a plan is developed for providing instruction of any 
resident students in other districts when distance to the 
secondary education facility makes attendance at the facility 
unreasonably difficult or impractical; and 
    (11) the joint powers board established under clause (2) 
discusses with technical colleges located in the area how 
vocational education space in the cooperative secondary facility 
could be jointly used for secondary and post-secondary purposes. 
    (b) To the extent possible, the joint powers board is 
encouraged to provide for severance pay or for early retirement 
incentives under section 125.611, for any teacher or 
administrator, as defined under section 125.12, subdivision 1, 
who is placed on unrequested leave as a result of the 
cooperative secondary facility agreement. 
    (c) For the purpose of paragraph (a), clause (8), each 
school district must be considered to have started school each 
year on the same date. 
    (d) The districts may develop a plan that provides for the 
location of social service, health, and other programs serving 
pupils and community residents within the cooperative secondary 
facility.  The commissioner shall consider this plan when 
preparing a review and comment on the proposed facility. 
    (e) The districts shall schedule and conduct a meeting on 
library services.  The school districts, in cooperation with the 
regional public library system and its appropriate member 
libraries, shall discuss the possibility of including jointly 
operated library services at the cooperative secondary facility. 
    Sec. 20.  Minnesota Statutes 1992, section 124.494, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [COLOCATION GRANT.] A group of districts that 
receives a grant under subdivision 4 is also eligible to receive 
an additional grant in the amount of $1,000,000.  To receive the 
additional grant, the group of districts must develop a plan 
under subdivision 2, paragraph (d), that provides for the 
location of a significant number of noneducational student and 
community service programs within the cooperative secondary 
facility. 
    Sec. 21.  [124.829] [HEALTH, SAFETY, AND ENVIRONMENTAL 
MANAGEMENT.] 
    "Health, safety, and environmental management" means school 
district activities necessary for a district's compliance with 
state law and rules of the departments of health, labor and 
industry, public safety, and pollution control agency as well as 
any related federal standards.  These activities include hazard 
assessment, required training, record keeping, and program 
management. 
    Sec. 22.  Minnesota Statutes 1992, section 124.83, 
subdivision 1, is amended to read: 
    Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
health and safety revenue for any fiscal year a district, 
including an intermediate district, must submit to the 
commissioner of education an application for aid and levy by the 
date determined by the commissioner.  The application may be for 
hazardous substance removal, fire code compliance, or and life 
safety code repairs, labor and industry regulated facility and 
equipment violations, and health, safety, and environmental 
management.  The application must include a health and safety 
program adopted by the school district board.  The program must 
include the estimated cost, per building, of the program by 
fiscal year. 
    Sec. 23.  Minnesota Statutes 1992, section 124.83, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONTENTS OF PROGRAM.] A district may must adopt 
a health and safety program.  The program may must include 
plans, where applicable, for hazardous substance removal, fire 
code compliance, or and life safety code repairs, regulated 
facility and equipment violations, and health, safety, and 
environmental management.  
    (a) A hazardous substance plan must contain provisions for 
the removal or encapsulation of asbestos from school buildings 
or property, asbestos-related repairs, cleanup and disposal of 
polychlorinated biphenyls found in school buildings or property, 
and cleanup, removal, disposal, and repairs related to storing 
heating fuel or transportation fuels such as alcohol, gasoline, 
fuel, oil, and special fuel, as defined in section 296.01.  If a 
district has already developed a plan for the removal or 
encapsulation of asbestos as required by the federal Asbestos 
Hazard Emergency Response Act of 1986, a new plan is not 
necessary the district may use a summary of that plan, which 
includes a description and schedule of response actions, for 
purposes of this section.  The plan must also contain provisions 
to make modifications to existing facilities and equipment 
necessary to limit personal exposure to hazardous substances, as 
regulated by the federal Occupational Safety and Health 
Administration under Code of Federal Regulations, title 29, part 
1910, subpart Z; or is determined by the commissioner to present 
a significant risk to district staff or student health and 
safety as a result of foreseeable use, handling, accidental 
spill, exposure, or contamination. 
    (b) A fire and life safety plan must contain a description 
of the current fire and life safety code violation violations, a 
plan for the removal or repair of the fire and life safety 
hazard, and a description of safety preparation and awareness 
procedures to be followed until the hazard is fully corrected. 
    A life safety plan must contain a description of the life 
safety hazard and a plan for its removal or repair.  
    (c) A facilities and equipment violation plan must contain 
provisions to correct health and safety hazards as provided in 
department of labor and industry standards pursuant to section 
182.655.  
    (d) A health, safety, and environmental management plan 
must contain a description of training, record keeping, hazard 
assessment, and program management as defined in section 124.829.
    (e) A plan to test for and mitigate radon produced hazards. 
    Sec. 24.  Minnesota Statutes 1992, section 124.83, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
safety revenue, a district may levy an amount equal to the 
district's health and safety revenue as defined in subdivision 3 
multiplied by the lesser of one, or the ratio of the quotient 
derived by dividing the adjusted net tax capacity of the 
district for the year preceding the year the levy is certified 
by the actual pupil units in the district for the school year to 
which the levy is attributable, to $3,515 50 percent of the 
equalizing factor. 
    Sec. 25.  Minnesota Statutes 1992, section 124.83, 
subdivision 6, is amended to read: 
    Subd. 6.  [USES OF HEALTH AND SAFETY REVENUE.] Health and 
safety revenue may be used only for approved expenditures 
necessary to correct fire safety hazards, life safety hazards, 
or for the removal or encapsulation of asbestos from school 
buildings or property, asbestos-related repairs, cleanup and 
disposal of polychlorinated biphenyls found in school buildings 
or property, or the cleanup, removal, disposal, and repairs 
related to storing heating fuel or transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01, labor and industry regulated facility and 
equipment hazards, and health, safety, and environmental 
management.  Health and safety revenue must not be used for the 
construction of new facilities or the purchase of portable 
classrooms.  The revenue may not be used for a building or 
property or part of a building or property used for 
post-secondary instruction or administration or for a purpose 
unrelated to elementary and secondary education. 
    Sec. 26.  Minnesota Statutes 1992, section 124.83, is 
amended by adding a subdivision to read: 
    Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
COST.] (a) A district's cost for health, safety, and 
environmental management is limited to the lesser of:  
    (1) actual cost to implement their plan; or 
    (2) an amount determined by the commissioner, based on 
enrollment, building age, and size. 
    (b) Effective July 1, 1993, the department of education may 
contract with regional service organizations, private 
contractors, Minnesota safety council, or state agencies to 
provide management assistance to school districts for health and 
safety capital projects.  Management assistance is the 
development of written programs for the identification, 
recognition and control of hazards, and prioritization and 
scheduling of district health and safety capital projects. 
    (c) Notwithstanding paragraph (b), the department may 
approve revenue, up to the limit defined in paragraph (a) for 
districts having an approved health, safety, and environmental 
management plan that uses district staff to accomplish 
coordination and provided services. 
    Sec. 27.  Minnesota Statutes 1992, section 124.85, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] The definitions in this 
subdivision apply to this section. 
    (a) "Energy conservation measure" means a training program 
or facility alteration designed to reduce energy consumption or 
operating costs and includes: 
    (1) insulation of the building structure and systems within 
the building; 
    (2) storm windows and doors, caulking or weatherstripping, 
multiglazed windows and doors, heat absorbing or heat reflective 
glazed and coated window and door systems, additional glazing, 
reductions in glass area, and other window and door system 
modifications that reduce energy consumption; 
    (3) automatic energy control systems; 
    (4) heating, ventilating, or air conditioning system 
modifications or replacements; 
    (5) replacement or modifications of lighting fixtures to 
increase the energy efficiency of the lighting system without 
increasing the overall illumination of a facility, unless such 
increase in illumination is necessary to conform to the 
applicable state or local building code for the lighting system 
after the proposed modifications are made; 
    (6) energy recovery systems; 
    (7) cogeneration systems that produce steam or forms of 
energy such as heat, as well as electricity, for use primarily 
within a building or complex of buildings; 
    (8) energy conservation measures that provide long-term 
operating cost reductions.  
    (b) "Guaranteed energy savings contract" means a contract 
for the evaluation and recommendations of energy conservation 
measures, and for one or more energy conservation measures.  The 
contract must provide that all payments, except obligations on 
termination of the contract before its expiration, are to be 
made over time, but not to exceed ten 25 years from the date of 
final installation, and the savings are guaranteed to the extent 
necessary to make payments for the systems. 
    (c) "Qualified provider" means a person or business 
experienced in the design, implementation, and installation of 
energy conservation measures.  A qualified provider to whom the 
contract is awarded shall give a sufficient bond to the school 
district for its faithful performance. 
    Sec. 28.  Minnesota Statutes 1992, section 124.85, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
guaranteed energy savings contract with a qualified provider if, 
after review of the report, it finds that the amount it would 
spend on the energy conservation measures recommended in the 
report is not likely to exceed the amount to be saved in energy 
and operation costs over ten 25 years from the date of 
installation if the recommendations in the report were followed, 
and the qualified provider provides a written guarantee that the 
energy or operating cost savings will meet or exceed the costs 
of the system.  The guaranteed energy savings contract may 
provide for payments over a period of time, not to exceed ten 25 
years.  Notwithstanding section 121.912, a district annually may 
transfer from the general fund to the capital expenditure fund 
an amount up to the amount saved in energy and operation costs 
as a result of guaranteed energy savings contracts. 
    Sec. 29.  Minnesota Statutes 1992, section 124.85, 
subdivision 5, is amended to read: 
    Subd. 5.  [INSTALLATION CONTRACTS.] A school district may 
enter into an installment payment contract for the purchase and 
installation of energy conservation measures.  The contract must 
provide for payments of not less than one-tenth 1/25 of the 
price to be paid within two years from the date of the first 
operation, and the remaining costs to be paid monthly, not to 
exceed a ten-year 25-year term from the date of the first 
operation. 
    Sec. 30.  Minnesota Statutes 1992, section 124.91, 
subdivision 3, is amended to read: 
    Subd. 3.  [POST-JUNE 1992 LEASE PURCHASE, INSTALLMENT 
BUYS.] (a) Upon application to, and approval by, the 
commissioner in accordance with the procedures and limits in 
subdivision 1, a district, as defined in this subdivision, may: 
    (1) purchase real property under an installment contract or 
may lease real property with an option to purchase under a lease 
purchase agreement, by which installment contract or lease 
purchase agreement title is kept by the seller or vendor or 
assigned to a third party as security for the purchase price, 
including interest, if any; and 
    (2) annually levy the amounts necessary to pay the 
district's obligations under the installment contract or lease 
purchase agreement. 
    (b)(1) The obligation created by the installment contract 
or the lease purchase agreement must not be included in the 
calculation of net debt for purposes of section 475.53, and does 
not constitute debt under other law.  
    (2) An election is not required in connection with the 
execution of the installment contract or the lease purchase 
agreement. 
    (3) The district may terminate the installment contract or 
lease purchase agreement at the end of any fiscal year during 
its term.  
    (c) The proceeds of the levy authorized by this subdivision 
must not be used to acquire a facility to be primarily used for 
athletic or school administration purposes. 
    (d) In this subdivision, "district" means: 
    (1) a school district required to have a comprehensive plan 
for the elimination of segregation whose plan has been 
determined by the commissioner to be in compliance with the 
state board of education rules relating to equality of 
educational opportunity and school desegregation; or 
    (2) a school district that participates in a joint program 
for interdistrict desegregation with a district defined in 
clause (1) if the facility acquired under this subdivision is to 
be primarily used for the joint program. 
    (e) Notwithstanding subdivision 1, the prohibition against 
a levy by a district to lease or rent a district-owned building 
to itself does not apply to levies otherwise authorized by this 
subdivision. 
    (f) Projects may be approved under this section by the 
commissioner in fiscal years 1993, 1994, and 1995 only. 
    Sec. 31.  Minnesota Statutes 1992, section 124.95, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
section, the required eligible debt service levy revenue of a 
district is defined as follows: 
    (1) the amount needed to produce between five and six 
percent in excess of the amount needed to meet when due the 
principal and interest payments on the obligations, excluding 
obligations under section 124.2445, of the district for eligible 
projects according to subdivision 2, including the amounts 
necessary for repayment of energy loans according to section 
216C.37 or sections 298.292 to 298.298, debt service loans and 
capital loans, lease purchase payments under section 124.91, 
subdivisions 2 and 3, minus 
    (2) the amount of debt service excess levy reduction for 
that school year calculated according to the procedure 
established by the commissioner. 
    (b) The obligations in this paragraph are excluded from 
eligible debt service revenue: 
    (1) obligations under section 124.2445; 
    (2) the part of debt service principal and interest paid 
from the taconite environmental protection fund or northeast 
Minnesota economic protection trust; and 
    (3) obligations issued under Laws 1991, chapter 265, 
article 5, section 18, as amended by Laws 1992, chapter 499, 
article 5, section 24. 
    (c) For purposes of this section, if a preexisting school 
district reorganized under section 122.22, 122.23, or 122.241 to 
122.248 is solely responsible for retirement of the preexisting 
district's bonded indebtedness, capital loans or debt service 
loans, debt service equalization aid must be computed separately 
for each of the preexisting school districts. 
    Sec. 32.  Minnesota Statutes 1992, section 124.95, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
district's debt service levy qualify for debt service 
equalization: 
    (1) debt service for repayment of principal and interest on 
bonds issued before July 2, 1992; 
    (2) debt service for bonds refinanced after July 1, 1992, 
if the bond schedule has been approved by the commissioner and, 
if necessary, adjusted to reflect a 20-year maturity schedule; 
and 
    (3) debt service for bonds issued after July 1, 1992, for 
construction projects that have received a positive review and 
comment according to section 121.15, if the commissioner has 
determined that the district has met the criteria under section 
124.431, subdivision 2, and if the bond schedule has been 
approved by the commissioner and, if necessary, adjusted to 
reflect a 20-year maturity schedule.  
    (b) The criterion in section 124.431, subdivision 2, 
paragraph (a), clause (2), shall be considered to have been met 
if the district in the fiscal year in which the bonds are 
authorized at an election conducted under chapter 475: 
    (i) serves an average of at least 66 pupils per grade in 
the grades to be served by the facility; or 
    (ii) is eligible for sparsity revenue. 
    (c) The criterion described in section 124.431, subdivision 
2, paragraph (a), clause (9), does not apply to bonds authorized 
by elections held before July 1, 1992. 
    (d) Districts identified in Laws 1990, chapter 562, article 
11, section 8, do not need to meet the criteria of section 
124.431, subdivision 2, to qualify. 
    Sec. 33.  Minnesota Statutes 1992, section 124.95, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [NOTIFICATION.] A district eligible for debt 
service equalization revenue under subdivision 2 must notify the 
commissioner of the amount of its intended debt service levy 
revenue calculated under subdivision 1 for all bonds sold prior 
to the notification by July 1 of the calendar year the levy is 
certified. 
    Sec. 34.  Minnesota Statutes 1992, section 124.95, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
fiscal years 1995 and later, the debt service equalization 
revenue of a district equals the required eligible debt service 
levy revenue minus the amount raised by a levy of ten percent 
times the adjusted net tax capacity of the district. 
    (b) For fiscal year 1993, debt service equalization revenue 
equals one-third of the amount calculated in paragraph (a). 
    (c) For fiscal year 1994, debt service equalization revenue 
equals two-thirds of the amount calculated in paragraph (a). 
    Sec. 35.  Minnesota Statutes 1992, section 124.961, is 
amended to read: 
    124.961 [DEBT SERVICE APPROPRIATION.] 
    (a) $6,000,000 is appropriated in fiscal year 1993 from the 
general fund to the commissioner of education for payment of 
debt service equalization aid under section 124.95.  $17,000,000 
in fiscal year 1994 and $21,000,000 $26,000,000 in fiscal year 
1995 and each year thereafter is appropriated from the general 
fund to the commissioner of education for payment of debt 
service equalization aid under section 124.95.  The 1994 
appropriation includes $3,000,000 for 1993 and $14,000,000 for 
1994. 
    (b) These amounts The appropriations in paragraph (a) must 
be reduced by the amount of any money specifically appropriated 
for the same purpose in any year from any state fund. 
    Sec. 36.  [124C.60] [CAPITAL FACILITIES AND EQUIPMENT 
GRANTS FOR COOPERATION AND COMBINATION.] 
    Subdivision 1.  [ELIGIBILITY.] Two or more districts that 
have a cooperation and combination plan approved by the state 
board of education under section 122.242, may apply for a grant 
of up to $100,000 under this section.  The grant must be awarded 
after the districts combine according to sections 122.241 to 
122.248. 
    Subd. 2.  [PROCEDURES.] The state board shall establish 
procedures and deadlines for the grant application.  The state 
board shall review each application and may require 
modifications consistent with sections 122.241 to 122.248. 
    Subd. 3.  [USE OF GRANT MONEY.] The grant money may be used 
for any capital expenditures specified in section 124.243 or 
122.244. 
    Sec. 37.  Minnesota Statutes 1992, section 134.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state shall, as an integral part of its 
responsibility for public education, support the provision of 
library service for every citizen and, the development of 
cooperative programs for the sharing of resources and services 
among all libraries, and the establishment of jointly operated 
library services at a single location where appropriate. 
    Sec. 38.  Minnesota Statutes 1992, section 134.31, 
subdivision 2, is amended to read: 
    Subd. 2.  The department of education shall give advice and 
instruction to the managers of any public library or to any 
governing body maintaining a library or empowered to do so by 
law upon any matter pertaining to the organization, maintenance, 
or administration of libraries.  The department may also give 
advice and instruction, as requested, to post-secondary 
educational institutions, state agencies, governmental units, 
nonprofit organizations, or private entities.  It shall assist, 
to the extent possible, in the establishment and organization of 
library service in those areas where adequate services do not 
exist, and may aid in improving previously established library 
services.  The department shall also provide assistance to 
school districts, regional library systems, and member libraries 
interested in offering joint library services at a single 
location. 
    Sec. 39.  Minnesota Statutes 1992, section 134.32, 
subdivision 8, is amended to read: 
    Subd. 8.  (a) The state board shall promulgate rules 
consistent with sections 134.32 to 134.35 governing: 
    (a) (1) applications for these grants; 
    (b) (2) computation formulas for determining the amounts of 
establishment grants and regional library basic system support 
grants; and 
    (c) (3) eligibility criteria for grants. 
    (b) To the extent allowed under federal law, a construction 
grant applicant, in addition to the points received under 
Minnesota Rules, part 3530.2632, shall receive an additional 
five points if the construction grant is for a project combining 
public library services and school district library services at 
a single location. 
    Sec. 40.  Minnesota Statutes 1992, section 475.61, 
subdivision 3, is amended to read: 
    Subd. 3.  [IRREVOCABILITY.] Tax levies so made and filed 
shall be irrevocable, except as provided in this subdivision. 
    In each year when there is on hand any excess amount in the 
debt redemption fund of a school district at the time the 
district makes its property tax levies, the amount of the excess 
shall be certified by the school board to the county auditor 
commissioner.  The commissioner shall report the amount of the 
excess to the county auditor and the auditor shall reduce the 
tax levy otherwise to be included in the rolls next prepared by 
the amount certified.  The commissioner shall prescribe the form 
and calculation to be used in computing the excess amount.  The 
school board may, with the approval of the commissioner, retain 
the excess amount if it is necessary to ensure the prompt and 
full payment of the obligations and any call premium on the 
obligations, or will be used for redemption of the obligations 
in accordance with their terms.  The school board may, with the 
approval of the commissioner, specify a tax levy in a higher 
amount if necessary because of anticipated tax delinquency or 
for cash flow needs to meet the required payments from the debt 
redemption fund.  
    If the governing body, including the governing body of a 
school district, in any year makes an irrevocable appropriation 
to the debt service fund of money actually on hand or if there 
is on hand any excess amount in the debt service fund, the 
recording officer may certify to the county auditor the fact and 
amount thereof and the auditor shall reduce by the amount so 
certified the amount otherwise to be included in the rolls next 
thereafter prepared. 
    Sec. 41.  [FACILITY REVENUE USE.] 
    Notwithstanding section 124.243, subdivision 6, for fiscal 
years 1994 and 1995, a district may use up to one-third of its 
capital expenditure facilities revenue for equipment uses under 
section 124.244. 
    Sec. 42.  [LEASE LEVY FOR ADMINISTRATIVE SPACE.] 
    Each year, upon approval of the commissioner of education, 
independent school district No. 709, Duluth, may levy the amount 
necessary to rent or lease administrative space so that space 
being used for administrative purposes as of the effective date 
of this section can be used for instructional purposes.  In 
granting approval under this section, the commissioner must 
determine that the overall lease levy for the district would not 
be higher than it would have been under Minnesota Statutes, 
section 124.91, subdivision 1. 
    Sec. 43.  [EXCEPTION TO LEASE LIMIT.] 
    Notwithstanding any law to the contrary, independent school 
district No. 861, Winona, may enter into an agreement, for the 
number of years stated in the agreement, with the city of 
Rollingstone to lease space for educational purposes. 
    Upon approval by the commissioner of education, the 
district may levy for as many years as required under the 
agreement the amount necessary to make payments required by the 
agreement.  To obtain approval from the commissioner, the 
district must demonstrate substantial collaboration with the 
city in the use of the facility.  The city must also agree to 
contribute $100,000 toward the cost of the education portion of 
the facility.  The amount of the levy shall be annually included 
in the district's debt service levy under Minnesota Statutes, 
section 124.95, subdivision 1, for purposes of determining the 
district's debt service equalization aid. 
     Sec. 44.  [RADON TESTING; SCHOOL DISTRICTS.] 
    Subdivision 1.  [VOLUNTARY PLAN.] The commissioners of 
health and education may jointly develop a plan to encourage 
school districts to accurately and efficiently test for the 
presence of radon in public school buildings serving students in 
kindergarten through grade 12.  To the extent possible, the 
commissioners shall base the plan on the standards established 
by the United States Environmental Protection Agency. 
    Subd. 2.  [RADON TESTING.] A school district may include 
radon testing as a part of its health and safety plan.  If a 
school district receives authority to use health and safety 
revenue to conduct radon testing, the district shall conduct the 
testing according to the radon testing plan developed by the 
commissioners of health and education. 
    Subd. 3.  [REPORTING.] A school district that has tested 
its school buildings for the presence of radon shall report the 
results of its tests to the department of health in a form and 
manner prescribed by the commissioner of health.  A school 
district that has tested for the presence of radon shall also 
report the results of its testing at a school board meeting. 
    Sec. 45.  [CAPITAL LOANS.] 
    Subdivision 1.  [CAPITAL LOAN PRIORITIES.] Notwithstanding 
Minnesota Statutes, section 124.431, subdivision 5, the capital 
loan applications and the state board approvals of capital loans 
for independent school districts No. 727, Big Lake, and No. 707, 
Nett Lake, do not cancel until July 1, 1995.  The school 
districts listed in this section are the top priority for 
funding capital loans until July 1, 1995.  If either of these 
capital loan projects remains unfunded, the commissioner shall 
resubmit the loan application to the legislature by February 1, 
1994, and February 1, 1995. 
    Subd. 2.  [MAXIMUM EFFORT LOAN REVIEW.] When bonding is 
authorized for the capital loans approved in this section, the 
commissioner shall review the proposed plan and budgets of these 
maximum effort school loan projects and may reduce the amount of 
the loan to ensure that the project will be economical.  The 
commissioner may recover the cost incurred by the commissioner 
for any professional services associated with the final review 
by reducing the proceeds of the loan paid to the district. 
    Sec. 46.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [CAPITAL EXPENDITURE FACILITIES AID.] For capital 
expenditure facilities aid according to Minnesota Statutes, 
section 124.243, subdivision 5:  
     $73,290,000     .....     1994 
     $75,980,000     .....     1995
    The 1994 appropriation includes $10,730,000 for 1993 and 
$62,560,000 for 1994.  
    The 1995 appropriation includes $11,040,000 for 1994 and 
$64,940,000 for 1995.  
    Subd. 3.  [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital 
expenditure equipment aid according to Minnesota Statutes, 
section 124.244, subdivision 3:  
     $36,049,000     .....     1994 
     $37,390,000     .....     1995
    The 1994 appropriation includes $5,279,000 for 1993 and 
$30,720,000 for 1994.  
    The 1995 appropriation includes $5,430,000 for 1994 and 
$31,960,000 for 1995.  
    Subd. 4.  [HEALTH AND SAFETY AID.] (a) For health and 
safety aid according to Minnesota Statutes, section 124.83, 
subdivision 5: 
     $11,260,000     .....     1994 
     $18,924,000     .....     1995 
    The 1994 appropriation includes $1,256,000 for 1993 and 
$10,004,000 for 1994.  
    The 1995 appropriation includes $1,694,000 for 1994 and 
$17,230,000 for 1995.  
    (b) $400,000 in fiscal year 1994 and $400,000 in fiscal 
year 1995 is for health and safety management assistance 
contracts under section 24. 
    (c) $60,000 of each year's appropriation shall be used to 
contract with the state fire marshal to provide services under 
Minnesota Statutes, section 121.502.  This amount is in addition 
to the amount for this purpose in article 11.  
    (d) For fiscal year 1995, the sum of total health and 
safety revenue and levies under section 3 may not exceed 
$64,000,000.  The state board of education shall establish 
criteria for prioritizing district health and safety project 
applications not to exceed this amount. 
    (e) Notwithstanding section 124.14, subdivision 7, the 
commissioner of education, with the approval of the commissioner 
of finance, may transfer a projected excess in the appropriation 
for health and safety aid for fiscal year 1995 to the 
appropriation for debt service aid for the same fiscal year.  
The projected excess amount and the projected deficit in the 
appropriation for debt service aid must be determined and the 
transfer made as of November 1, 1994.  The amount of the 
transfer is limited to the lesser of the projected excess in the 
health and safety appropriation or the projected deficit in the 
appropriation for debt service aid.  Any transfer must be 
reported immediately to the education committees of the house of 
representatives and senate. 
    Subd. 5.  [DEBT SERVICE AID.] For debt service aid 
according to Minnesota Statutes, section 124.95, subdivision 5: 
     $17,018,000     .....     1994
     $26,000,000     .....     1995
    $18,000 of the fiscal year 1994 appropriation is to correct 
an erroneous proration of debt service equalization aid. 
    Subd. 6.  [LIBRARY DEMONSTRATION GRANT.] For a 
demonstration grant to encourage jointly operated library 
services at a single location: 
     $30,000         .....     1994
    Within one year of receiving a grant under this 
subdivision, the grant recipient must evaluate the jointly 
operated library services and report the results of the 
evaluation to the legislature. 
    Subd. 7.  [PLANNING AND EXPENSES.] For a grant and 
administrative expenses to facilitate planning for cooperative 
secondary facilities for independent school district Nos. 341, 
Atwater, 461, Cosmos, and 464, Grove City, acting under a joint 
powers agreement: 
     $100,000        .....     1994
    Sec. 47.  [EFFECTIVE DATE.] 
    Section 39 is effective July 1, 1996.  Sections 18 and 20 
are effective for cooperative secondary facilities grants 
approved by the legislature after January 1, 1994. 

                                ARTICLE 6

                 EDUCATION ORGANIZATION AND COOPERATION
    Section 1.  Minnesota Statutes 1992, section 120.0621, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [CANADIAN PUPILS.] A pupil who resides in Canada 
may enroll in a Minnesota school district if the province in 
which the pupil resides pays tuition to the school district in 
which the pupil is enrolled.  A pupil may enroll either 
full-time or part-time for all instructional programs and shall 
be considered eligible for all other purposes for all other 
programs offered by the district.  The tuition must be an amount 
that is at least comparable to the tuition specified in section 
120.08, subdivision 1.  A school district may accept funds from 
any international agency for these programs. 
    Sec. 2.  Minnesota Statutes 1992, section 121.912, 
subdivision 6, is amended to read: 
    Subd. 6.  [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] 
(a) A school district that has reorganized according to section 
122.22, 122.23, or sections 122.241 to 122.248 may make 
permanent transfers between any of the funds in the newly 
created or enlarged district with the exception of the debt 
redemption fund, food service fund, and health and safety 
account of the capital expenditure fund.  Fund transfers under 
this section may be made only during the year following the 
effective date of reorganization. 
    (b) A district that has conducted a successful referendum 
on the question of combination under section 122.243, 
subdivision 2, may make permanent transfers between any of the 
funds in the district with the exception of the debt redemption 
fund, food service fund, and health and safety account of the 
capital expenditure fund for up to one year prior to the 
effective date of combination under sections 122.241 to 122.248. 
    Sec. 3.  Minnesota Statutes 1992, section 121.931, 
subdivision 5, is amended to read: 
    Subd. 5.  [SOFTWARE DEVELOPMENT.] The state board, with the 
advice of the ESV computer council, commissioner shall provide 
for the development of applications software for ESV-IS and 
SDE-IS.  The state board may provide state or federal funds for 
the development of software for an alternative management 
information system only if it determines that this system may 
have statewide applicability.  Notwithstanding the foregoing, 
the state board may, for innovative projects involving 
computers, approve grants to districts pursuant to title IV of 
the Elementary and Secondary Education Act of 1965 as amended, 
or any other appropriate statute.  The commissioner may charge 
school districts or regional organizations for the actual cost 
of software development used by the district or regional entity. 
Any amount received is annually appropriated to the department 
of education for this purpose. 
    Sec. 4.  Minnesota Statutes 1992, section 122.22, is 
amended by adding a subdivision to read: 
    Subd. 21.  (a) In the year prior to the effective date of 
the dissolution of a district, the school board of a district to 
which all of the dissolving district is to be attached may adopt 
a resolution directing the school board of the dissolving 
district to certify levies for general education, basic 
transportation, and capital expenditure equipment and facilities 
in an amount not to exceed the maximum amount authorized for the 
dissolving district for taxes payable in the year the 
dissolution is effective.  If the dissolving district is to be 
attached to more than one school district, the boards of the 
districts to which the dissolving district is to be attached may 
adopt a joint resolution that accomplishes the purpose in this 
paragraph. 
    (b) Notwithstanding any other law to the contrary, upon 
receipt of a resolution under paragraph (a), the board of the 
dissolving district must certify levies in the amounts specified 
in the resolution for taxes payable in the year the dissolution 
is effective. 
    Sec. 5.  Minnesota Statutes 1992, section 122.242, 
subdivision 9, is amended to read: 
    Subd. 9.  [FINANCES.] The plan must state:  
    (1) whether debt service for the bonds outstanding at the 
time of combination remains solely with the district that issued 
the bonds or whether all or a portion of the debt service for 
the bonds will be assumed by the combined district and paid by 
the combined district on behalf of the district that issued the 
bonds; 
    (2) whether obligations for a capital loan or energy loan 
made according to section 216C.37 or sections 298.292 to 298.298 
outstanding at the time of combination remain solely with the 
district that obtained the loan, or whether all or a portion of 
all the loan obligations will be assumed by the combined 
district and paid by the combined district on behalf of the 
district that obtained the loan; 
    (3) the treatment of debt service levies, down payment 
levies under section 124.82, and referendum levies; 
    (4) whether the cooperating or combined district will levy 
for reorganization operating debt according to section 121.915, 
clause (1); and 
    (5) two- and five-year projections, prepared by the 
department of education upon the request of any district, of 
revenues, expenditures, and property taxes for each district if 
it cooperated and combined and if it did not. 
     Sec. 6.  Minnesota Statutes 1992, section 122.243, 
subdivision 2, is amended to read: 
    Subd. 2.  [VOTER APPROVAL.] A referendum on the question of 
combination shall be conducted during the first or second year 
of cooperation for districts that cooperate according to section 
122.241, or no more than 18 months before the effective date of 
combination for districts that do not cooperate.  The referendum 
shall be on a date called by the school boards.  The referendum 
shall be conducted by the school boards according to the 
Minnesota election law, as defined in section 200.01.  If the 
referendum fails, the same question or a modified question may 
be submitted the following school year.  If the referendum fails 
again, the districts shall modify their cooperation and 
combination plan.  A third referendum may be conducted.  If a 
second or third referendum is conducted after October 1, the 
newly combined district may not levy under section 124.2725 
until the following year.  Referendums shall be conducted on the 
same date in all districts. 
    Sec. 7.  Minnesota Statutes 1992, section 122.895, is 
amended by adding a subdivision to read: 
    Subd. 10.  [COOPERATIVES THAT MERGE.] Notwithstanding 
subdivisions 1 to 9, the following paragraphs apply to 
cooperatives that merge. 
    (a) If a cooperative enters into an agreement to merge with 
another cooperative, the boards of the cooperatives and the 
exclusive representatives of the teachers in the cooperatives 
and the teachers in each member district may negotiate a plan to 
assign or employ in a member district or to place on unrequested 
leave of absence all teachers whose positions are discontinued 
as a result of the agreement.  If plans are negotiated and if 
the boards determine the plans are compatible, the boards shall 
include the plans in their agreement. 
    (b) If compatible plans are not negotiated under paragraph 
(a) by the March 1 preceding the effective date of the merger of 
the cooperatives, subdivisions 2 to 9 apply to teachers and 
nonlicensed employees whose positions are terminated as a result 
of an agreement to merge cooperatives. 
    Sec. 8.  Minnesota Statutes 1992, section 124.195, 
subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
hundred percent of the aid for the current fiscal year must be 
paid for the following aids:  management information center 
subsidies, according to section 121.935; reimbursement for 
transportation to post-secondary institutions, according to 
section 123.3514, subdivision 8; aid for the program for adults 
with disabilities, according to section 124.2715, subdivision 2; 
school lunch aid, according to section 124.646; tribal contract 
school aid, according to section 124.85; hearing impaired 
support services aid, according to section 121.201; Indian 
post-secondary preparation grants according to section 124.481; 
integration grants according to Laws 1989, chapter 329, article 
8, section 14, subdivision 3; and debt service aid according to 
section 124.95, subdivision 5. 
    Sec. 9.  Minnesota Statutes 1992, section 124.2725, 
subdivision 2, is amended to read: 
    Subd. 2.  [COOPERATION AND COMBINATION REVENUE.] 
Cooperation and combination revenue equals, for each resident 
and nonresident pupil receiving instruction in a cooperating or 
combined district, $100 times the actual pupil units served in 
the district.  For purposes of this section, pupil units served 
means the number of resident and nonresident pupil units in 
average daily membership receiving instruction in the 
cooperating or combined district.  A district may not receive 
revenue under this section if it levies under section 124.912, 
subdivision 4.  
    Sec. 10.  Minnesota Statutes 1992, section 124.2725, 
subdivision 4, is amended to read: 
    Subd. 4.  [INCREASING LEVY.] (a) For districts that did not 
enter into an agreement under section 122.541 at least three 
years before the date of a successful referendum held under 
section 122.243, subdivision 2, and that combine without 
cooperating, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 50 percent for the first year of combination; and 
    (2) 25 percent for the second year of combination. 
    (b) For districts that entered into an agreement under 
section 122.541 at least three years before the date of a 
successful referendum held under section 122.243, subdivision 2, 
and combine without cooperating, the percentages in subdivision 
3, clause (2), shall be: 
    (1) 100 percent for the first year of combination; 
    (2) 75 percent for the second year of combination; 
    (3) 50 percent for the third year of combination; and 
    (4) 25 percent for the fourth year of combination. 
    (c) For districts that combine after one year of 
cooperation, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the first year of combination; 
    (3) 50 percent for the second year of combination; and 
    (4) 25 percent for the third year of combination. 
    (c) (d) For districts that combine after two years of 
cooperation, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the second year of cooperation; 
    (3) 50 percent for the first year of combination; and 
    (4) 25 percent for the second year of combination. 
    Sec. 11.  Minnesota Statutes 1992, section 124.2725, 
subdivision 5, is amended to read: 
    Subd. 5.  [COOPERATION AND COMBINATION AID.] (a) Districts 
that did not enter into an agreement under section 122.541 at 
least three years before the date of a successful referendum 
held under section 122.243, subdivision 2, and combine without 
cooperating shall receive cooperation and combination aid for 
the first two years of combination.  Cooperation and combination 
aid shall not be paid after two years of combining. 
    (b) Districts that entered into an agreement under section 
122.541 at least three years before the date of a successful 
referendum held under section 122.243, subdivision 2, and 
combine without cooperating shall receive cooperation and 
combination aid for the first four years of combination.  Aid 
must not be paid after four years of combination. 
    (c) Districts that combine after one year of cooperation 
shall receive cooperation and combination aid for the first year 
of cooperation and three years of combination.  Aid shall not be 
paid after three years of combining.  
    (c) (d) Districts that combine after two years of 
cooperation shall receive cooperation and combination aid for 
the first two years of cooperation and the first two years of 
combination.  Aid shall not be paid after two years of combining.
    (d) (e) In each case, cooperation and combination aid is 
equal to the difference between the cooperation and combination 
revenue and the cooperation and combination levy. 
    Sec. 12.  Minnesota Statutes 1992, section 124.2725, 
subdivision 6, is amended to read: 
    Subd. 6.  [ADDITIONAL AID.] In addition to the aid in 
subdivision 5, districts shall receive aid according to the 
following: 
    (1) for districts that did not enter into an agreement 
under section 122.541 at least three years before the date of a 
successful referendum held under section 122.243, subdivision 2, 
and combine without cooperating, $100 times the actual pupil 
units served in the district in the first year of combination; 
or 
    (2) for districts that combine after one year or two years 
of cooperation, $100 times the actual pupil units served in each 
district for the first year of cooperation, for each resident 
and nonresident pupil receiving instruction in the cooperating 
district, and $100 times the actual pupil units served in the 
combined district for the first year of combination; or 
    (3) for districts that combine after two years of 
cooperation, $100 times the actual pupil units in each district 
for the first year of cooperation, for each resident and 
nonresident pupil receiving instruction in the cooperating 
district, and $100 times the actual pupil units in the combined 
district for the first year of combination for districts that 
entered into an agreement under section 122.541 at least three 
years before the date of a successful referendum held under 
section 122.243, subdivision 2, and combine without cooperating, 
$100 times the pupil units served in the combined district for 
the first two years of combination. 
    Sec. 13.  Minnesota Statutes 1992, section 124.2725, 
subdivision 9, is amended to read: 
    Subd. 9.  [SUBSEQUENT DISTRICTS.] If a district 
subsequently cooperates or combines with districts that have 
previously received revenue under this section, the new district 
shall receive revenue, according to subdivision 4 or 6, as 
though it had been a party to the initial agreement follows: 
    (1) if the districts previously received revenue under 
sections 10, paragraph (a), 11, paragraph (a), and 12, clause 
(1), the new district will receive two years of revenue under 
those provisions; 
    (2) if the districts previously received revenue under 
sections 10, paragraph (b), (c), or (d), 11, paragraph (b), (c), 
or (d), and 12, clause (2) or (3), the new district shall 
receive four years of revenue under the applicable provisions of 
sections 11 to 13.  The previously cooperating or combined 
districts may not receive revenue, according to subdivision 6 or 
10, as though parties to a new agreement. 
    As of the effective date of a cooperation and combination 
agreement between districts that have previously received 
revenue under this section and a new district, the new group of 
districts may not receive revenue in excess of the limit 
specified in subdivision 10. 
    Sec. 14.  Minnesota Statutes 1992, section 124.2725, 
subdivision 10, is amended to read: 
    Subd. 10.  [REVENUE LIMIT.] Revenue under this section 
shall not exceed the revenue received by cooperating districts 
or a combined district with 2,000 actual pupil units served.  
Revenue for cooperating districts subject to the limitation in 
this subdivision shall be allocated according to the number of 
pupil units served in the districts. 
    Sec. 15.  Minnesota Statutes 1992, section 124.2725, 
subdivision 13, is amended to read: 
    Subd. 13.  [REVENUE FOR EXTENDED COOPERATION FAILURE TO 
COMBINE.] A district has failed to combine if the state board 
disapproves of the plan according to section 122.243, 
subdivision 1, or if a second third referendum fails under 
section 122.243, subdivision 2, cooperation and combination 
revenue shall equal $50 times the actual pupil units or if the 
commissioner of education determines that the districts involved 
are not making sufficient progress toward combination. 
    (a) If a district has failed to combine, cooperation and 
combination aid must be reduced by an amount equal to the aid 
paid under subdivision 6 plus the difference between the aid 
paid under subdivision 5 for the first two years of the 
agreement and the aid that would have been paid if the revenue 
had been $50 times the actual pupil units.  If the aid is 
insufficient to recover the entire amount, under subdivisions 5 
and 6 shall not be paid and the authority to levy under 
subdivision 4 ceases.  The department of education shall reduce 
other aids due the district to recover the entire an amount 
equal to the aid paid under subdivision 6 plus the difference 
between the aid paid under subdivision 5 and the aid that would 
have been paid if the revenue had been $50 times the pupil units 
served.  The cooperation and combination levy shall be reduced 
by an amount equal to the difference between the levy for the 
first two years of the agreement and the levy that would have 
been authorized if the revenue had been $50 times the actual 
pupil units.  A district that receives revenue under this 
subdivision may not also receive revenue according to sections 
124.2721 and 124.575. 
    (b) If a district has failed to combine, the authority to 
levy for reorganization operating debt under section 122.531, 
subdivision 4a, and for severance pay or early retirement 
incentives under subdivision 15 ceases. 
    Sec. 16.  Minnesota Statutes 1992, section 124.2727, is 
amended to read: 
    124.2727 [INTERMEDIATE SCHOOL DISTRICT COOPERATION 
REVENUE.] 
    Subd. 6.  [LEVY AUTHORITY.] (a) For fiscal years prior to 
fiscal year 1996, an intermediate school district may levy, as a 
single taxing district, according to this paragraph, an amount 
that may not exceed the greater of: 
    (1) five-sixths of the levy certified for special education 
and secondary vocational education for taxes payable in 1989; or 
    (2) the lesser of (i) $50 times the actual pupil units in 
each participating district for the fiscal year to which the 
levy is attributable, or (ii) 1.43 percent of the adjusted net 
tax capacity.  The levy shall be certified according to section 
275.07.  Upon such certification, the county auditors shall levy 
and collect the levies and remit the proceeds of the levy to the 
intermediate school district.  The levies shall not be included 
in computing the limitation upon the levy of any of the 
participating districts. 
    (b) Five-elevenths of the proceeds of the levy shall be 
used for special education.  Six-elevenths of the proceeds of 
the levy shall be used for secondary vocational education. 
    (c) When a school district joins or withdraws from an 
intermediate school district after July 1, 1991, the department 
of education shall recalculate the levy certified for taxes 
payable in 1989, for the purpose of determining the levy amount 
authorized under paragraph (a), clause (1), to reflect the 
change in membership of the intermediate school district.  The 
department shall recalculate the levy as though the intermediate 
school district had certified the maximum permitted levy for 
taxes payable in 1989. 
    This subdivision expires July 1, 1995. 
    Subd. 6a.  [DISTRICT COOPERATION REVENUE.] A district's 
cooperation revenue is equal to the greater of $50 times the 
actual pupil units or $25,000. 
    Subd. 6b.  [DISTRICT COOPERATION LEVY.] To receive district 
cooperation revenue, a district may levy an amount equal to the 
district's cooperation revenue multiplied by the lesser of one, 
or the ratio of the quotient derived by dividing the adjusted 
net tax capacity of the district for the year preceding the year 
the levy is certified by the actual pupil units in the district 
for the school year to which the levy is attributable to $3,500. 
    Subd. 6c.  [DISTRICT COOPERATION AID.] A district's 
cooperation aid is the difference between its district 
cooperation revenue and its district cooperation levy.  If a 
district does not levy the entire amount permitted, aid must be 
reduced in proportion to the actual amount levied. 
    Subd. 6d.  [REVENUE USES.] A district must place its 
district cooperation revenue in a reserved account and may only 
use the revenue to purchase goods and services from entities 
formed for cooperative purposes or to otherwise provide 
educational services in a cooperative manner.  A district that 
is a member of an intermediate school district organized 
pursuant to chapter 136D may not access revenue under this 
section. 
    Subd. 7.  [CERTIFICATES OF INDEBTEDNESS.] After a levy has 
been certified according to subdivision 6, an intermediate 
school board may issue and sell certificates of indebtedness in 
anticipation of the collection of levies, but in aggregate 
amounts that will not exceed the portion of the levies which is 
then not collected and not delinquent. 
    Subd. 8.  [ADDITIONAL LEVY AUTHORITY.] A district other 
than intermediate school district No. 287 on July 1, 1993, may 
levy for taxes payable in 1995, $5 times the number of actual 
pupil units, for taxes payable in 1996, $9 times the number of 
actual pupil units, for taxes payable in 1997, $13 times the 
number of actual pupil units and for taxes payable in 1998 and 
thereafter, $17 times the number of actual pupil units in the 
district for the year for which the levy is attributable. 
    (c) The levy revenue under this subdivision must be used 
according to subdivision 6d.  Of the levy revenue under 
subdivision 8, paragraph (b), at least 55 percent must be spent 
on secondary vocational programs. 
    Sec. 17.  Minnesota Statutes 1992, section 124.914, is 
amended by adding a subdivision to read: 
    Subd. 4.  [1992 OPERATING DEBT.] (a) Each year, a district 
that has filed a plan pursuant to section 121.917, subdivision 
4, may levy, with the approval of the commissioner, to eliminate 
a deficit in the net unappropriated balance in the operating 
funds of the district, determined as of June 30, 1992, and 
certified and adjusted by the commissioner. Each year this levy 
may be an amount not to exceed the greater of: 
    (1) an amount raised by a levy of a net tax rate of one 
percent times the adjusted net tax capacity; or 
    (2) $100,000. 
This amount shall be reduced by referendum revenue authorized 
under section 124A.03 pursuant to the plan filed under section 
121.917.  However, the total amount of this levy for all years 
it is made shall not exceed the amount of the deficit in the net 
unappropriated balance in the operating funds of the district as 
of June 30, 1992.  When the cumulative levies made pursuant to 
this subdivision equal the total amount permitted by this 
subdivision, the levy shall be discontinued.  
    (b) A district, if eligible, may levy under this 
subdivision or subdivision 2 or 3, or under section 122.531, 
subdivision 4a, or Laws 1992, chapter 499, article 7, sections 
16 or 17, but not under more than one. 
    (c) The proceeds of this levy shall be used only for cash 
flow requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets.  
    (d) Any district that levies pursuant to this subdivision 
shall certify the maximum levy allowable under section 124A.23, 
subdivision 2, in that same year. 
    Sec. 18.  [EDUCATION DISTRICT LEVY ADJUSTMENT FOR FISCAL 
YEAR 1994.] 
    Notwithstanding any other law to the contrary, a school 
district that certified a levy under Minnesota Statutes, section 
124.2721, subdivision 3, in 1992 for taxes payable for 1993 may 
levy in 1993 for taxes payable in 1994 up to an amount equal to: 
    (1) the difference between $50 times the actual pupil units 
for fiscal year 1994 of the education district for which the 
school district belonged, and the amount of the education 
district levy calculated according to Minnesota Statutes, 
section 124.2721, subdivision 3, for fiscal year 1994, times 
    (2) the ratio of the adjusted net tax capacity of the 
school district to the adjusted net tax capacity of the 
education district. 
    The amount of the levy permitted under this section must be 
transferred to the education district board under Minnesota 
Statutes, section 124.2721, subdivision 3a. 
    Sec. 19.  [REFERENDUM EXCEPTION.] 
    Notwithstanding Minnesota Statutes, section 122.243, 
subdivision 2, a referendum on the question of combination may 
be held in independent school district No. 893, Echo, any time 
after the state board approves its plan for cooperation and 
combination. 
    Sec. 20.  [FIRST YEAR OF COOPERATION SPECIFIED.] 
    For the purpose of receiving additional cooperation and 
combination aid under Minnesota Statutes, section 124.2725, 
subdivision 6, the first year of cooperation for independent 
school district Nos. 918, Chandler-Lake Wilson, and 504, 
Slayton, is fiscal year 1993. 
    Sec. 21.  [VERDI DISSOLUTION; REFERENDUM REVENUE.] 
    Notwithstanding Minnesota Statutes, section 122.531, 
subdivision 2, as of the effective date of the dissolution of 
independent school district No. 408, Verdi, and the attachment 
of part of its territory to independent school district No. 404, 
Lake Benton, the authorization for all referendum revenues 
previously approved by the voters of school district No. 404, 
Lake Benton, is the tax rate times the net tax capacity of the 
enlarged independent school district No. 404.  Any new 
referendum revenue is authorized only after approval is granted 
by the voters of the entire enlarged district in an election 
under Minnesota Statutes, section 124A.03, subdivision 2. 
    Sec. 22.  [LAKE BENTON, PIPESTONE AGREEMENT.] 
    (a) The school board and exclusive bargaining 
representative of the teachers in independent school districts 
No. 404, Lake Benton, and No. 583, Pipestone, may negotiate a 
plan to assign to district No. 583 up to 1.2 FTE positions of 
the teachers in district No. 404, for up to five years following 
the dissolution of independent school district No. 408, Verdi.  
A teacher in district No. 583 who is placed on unrequested leave 
of absence may not assert reinstatement, realignment, or bumping 
rights to those 1.2 FTE positions. 
    (b) Paragraph (a) applies to employment agreements amended, 
renewed, or entered into after the effective date of this 
section. 
    Sec. 23.  [LAC QUI PARLE VALLEY DISTRICT NO. 6011.] 
    Independent school districts that belong to joint powers 
district No. 6011, Lac qui Parle Valley, may use cooperation and 
combination revenue received under Minnesota Statutes, section 
124.2725, for expenses specified in Minnesota Statutes, section 
124.2725, subdivision 11, that were incurred in the process of 
establishing or operating the cooperative secondary facility 
operated by joint powers district No. 6011, Lac qui Parle 
Valley, before cooperation and combination revenue was received. 
    Sec. 24.  [ALTERNATIVE REFERENDUM COMBINATION METHOD.] 
    Subdivision 1.  [ALTERNATIVE METHOD.] Notwithstanding 
Minnesota Statutes, sections 122.247, subdivision 1, and 
122.531, if independent school district No. 233, 
Preston-Fountain, and No. 228, Harmony, consolidate effective 
July 1, 1995, the referendum revenue authorization for the new 
district created by that consolidation may be any local tax rate 
that would raise an amount for the first year that does not 
exceed the combined dollar amount of the referendum revenues 
authorized by each of the component districts for fiscal year 
1995. 
    Subd. 2.  [INCLUDE REFERENDUM AUTHORIZATION IN COMBINATION 
PLAN.] (a) Referendum revenue authorization may be calculated 
under subdivision 1 only if: 
    (1) independent school district No. 233, Preston-Fountain 
and No. 228, Harmony, specify the dollar amount of the 
referendum revenue authority for the consolidated district and 
the number of years that the referendum revenue authorization is 
in effect in the cooperation and combination plan adopted under 
Minnesota Statutes, section 122.242; and 
    (2) the referendum information in clause (1) is included in 
the summary of the plan that is published in the official 
newspaper of each district under Minnesota Statutes, section 
122.242, subdivision 1. 
    (b) If the dollar amount of referendum revenue authority 
required under paragraph (a), clause (1), is not available at 
the time the cooperation and combination plan is submitted to 
the department of education, the districts may use an estimate 
calculated by the department. 
    Sec. 25.  [EDUCATION DELIVERY SERVICE PLANNING AND REVIEW.] 
    Subdivision 1.  [EDUCATION DELIVERY SERVICE PLANNING 
PROCESS.] Each school district must submit a plan for the 
delivery of education programs and services within the new 
education delivery system required under Laws 1992, chapter 499, 
article 6, section 33, subdivision 4, to the commissioner of 
education by August 1, 1993.  A group of districts may submit a 
joint plan.  The commissioner shall submit the plans to the 
review panel established under subdivision 2. 
    Subd. 2.  [REVIEW PANEL.] A panel is established to review 
each of the plans submitted to the commissioner under 
subdivision 1 and make recommendations to the legislature 
concerning the design and implementation of a preK-12 and 
community education service delivery system. 
    Subd. 3.  [MEMBERSHIP OF THE PANEL.] The review panel 
established under subdivision 2 shall consist of nine members: 
    (1) the commissioner of education or a designee appointed 
by the commissioner; 
    (2) one representative of the Minnesota association of 
school administrators; 
    (3) one representative of the Minnesota federation of 
teachers; 
    (4) one representative of the Minnesota education 
association; 
    (5) one representative of the Minnesota school boards 
association; 
    (6) one representative of the Minnesota business 
partnership; and 
     (7) one school principal jointly agreed on by the Minnesota 
association of secondary school principals and the Minnesota 
elementary school principals association. 
    Two members of the legislature shall be appointed to the 
review panel.  The subcommittee on committees of the committee 
on rules and administration of the senate shall appoint one 
member of the senate.  The speaker of the house of 
representatives shall appoint one member of the house. 
    Subd. 4.  [REVIEW PANEL SELECTION PROCESS.] To determine 
who shall serve as a representative of each organization listed 
in subdivision 3, clauses (2) to (7), each organization shall 
submit the names of three individuals for each representative 
the organization shall have on the panel to the co-chairs of the 
education committee of the senate, the chair of the house 
education committee, and the chair of the house K-12 education 
finance division.  Each of the three individuals must represent 
a different geographic area of the state.  The house and senate 
chairs shall jointly select one of the three names for each 
representative submitted by each organization to serve on the 
review panel.  The chairs must consider geographic balance when 
selecting the representatives. 
    Subd. 5.  [REVIEW PANEL RESPONSIBILITIES.] The review panel 
shall submit a summary of the school district plans received 
from the commissioner under subdivision 1 and recommendations on 
the following items to the legislature by January 15, 1994: 
    (1) the services that should be provided by each of the 
three components of the education service delivery system that 
is described in Laws 1992, chapter 499, article 6, section 33, 
subdivision 3:  the school district, the area education 
organization, and the central and regional delivery centers of 
the department of education; 
    (2) the optimal number of school districts and pupils that 
an area education organization should serve; 
    (3) the boundaries of area education organizations; 
    (4) a funding mechanism for providing services through the 
area education organization; 
    (5) the role of the school district, the area education 
organization, and the central and regional centers of the 
department in ensuring that health and other social services 
necessary to maximize a pupil's ability to learn are provided to 
pupils; and 
    (6) the optimal process for implementing the new preK-12 
and community education service delivery system by July 1, 1995. 
    The review panel shall also consider how services such as 
special education, vocational education, technology 
applications, joint purchasing, and management information are 
provided to multiple school districts through joint powers 
agreements under Minnesota Statutes, section 471.59. 
    Subd. 6.  [EXPENSES AND REIMBURSEMENTS.] Members of the 
review panel shall be reimbursed for expenses as provided under 
Minnesota Statutes, section 15.059, subdivision 3.  Members of 
the panel shall not receive any per diem payments. 
    Subd. 7.  [STAFF ASSISTANCE.] The education committees of 
the legislature and the department of education shall provide 
staff assistance to the review panel. 
    Sec. 26.  [DIRECT REPORTING PILOT SITES.] 
    Notwithstanding sections 121.935 and 121.936, the 
department of education may designate six local education 
agencies as pilot sites to demonstrate the implementation of 
direct reporting of uniform financial accounting and reporting 
standards (UFARS) data elements as well as staff and student 
essential data elements.  The department shall specify the 
criteria for local education agency participation and for vendor 
system data and edit requirements utilized in the pilot. 
    Sec. 27.  [REORGANIZATION OPERATING DEBT LEVY IN TAYLORS 
FALLS-CHISAGO LAKES COMBINATION.] 
    Notwithstanding Minnesota Statutes 1992, section 122.531, 
subdivision 4a, or any other law to the contrary, any 
reorganization operating debt levy contained in the approved 
cooperation and combination plan for independent school district 
No. 140, Taylors Falls, and independent school district No. 141, 
Chisago Lakes, may be certified over a period of seven years. 
    Sec. 28.  [RETIRED EMPLOYEE HEALTH BENEFITS LEVY.] 
    Subdivision 1.  Notwithstanding any other law to the 
contrary, in the consolidated school district consisting in 
whole or in part of former independent school district No. 692, 
Babbitt, and independent school district No. 710, St. Louis 
county, any amount levied under section 124.916, subdivision 2, 
or any other law to pay the health insurance or unreimbursed 
medical expenses of retirees of the former independent school 
district No. 692, may only be certified and spread on property 
which was taxable in the former independent school district No. 
692. 
    Subd. 2.  Any reduction in the levy of the consolidated 
school district consisting in whole or in part of former 
independent school district No. 692 and independent school 
district No. 710 under section 124.918, subdivision 8, must be 
applied first to the levy in subdivision 1 and then to any 
remaining levy as provided under section 124.918, subdivision 8. 
    Sec. 29.  [INTERMEDIATE GOVERNANCE STRUCTURE AND 
TRANSITION.] 
    Subdivision 1.  [PLAN.] School districts, based on the 
planning process required under Laws 1992, chapter 499, article 
6, section 33, may either purchase goods and services through 
informal cooperative arrangements or may enter into agreements 
through Minnesota Statutes, section 471.59, to act cooperatively.
    Subd. 2.  [TRANSITION.] Any unresolved disputes regarding 
the allocation of assets and liabilities resulting from the 
repeal of the enabling legislation for various entities by Laws 
1992, chapter 499, article 6, section 39, subdivision 3, as 
amended by Laws 1992, chapter 603, section 10, and not governed 
by the applicable agreement or enabling legislation for that 
entity may be appealed by any party to the dispute to the 
commissioner of education.  The determination of the 
commissioner shall be final and binding. 
    Sec. 30.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
or other named fund to the department of education for the 
fiscal years designated. 
    Subd. 2.  [COOPERATION AND COMBINATION AID.] For aid for 
districts that cooperate and combine according to Minnesota 
Statutes, section 124.2725: 
     $3,516,000    .....     1994 
     $3,979,000    .....     1995 
    The 1994 appropriation includes $591,000 for 1993 and 
$2,925,000 for 1994.  
    The 1995 appropriation includes $516,000 for 1994 and 
$3,463,000 for 1995.  
    Subd. 3.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] (a) For 
educational cooperative service units:  
     $733,000     .....     1994 
     $110,000     .....     1995 
    The 1994 appropriation includes $110,000 for fiscal year 
1993 and $623,000 for fiscal year 1994. 
    The 1995 appropriation includes $110,000 for 1994. 
    (b) Money from this appropriation may be transmitted to 
ECSU boards of directors for general operations in amounts of up 
to $66,700 per ECSU for fiscal year 1994.  The ECSU whose 
boundaries coincide with the boundaries of development region 11 
and the ECSU whose boundaries encompass development regions six 
and eight may receive up to $133,400 for fiscal year 1994. 
    (c) Before releasing money to the ECSUs, the department of 
education shall ensure that the annual plan of each ECSU 
explicitly addresses the specific educational services that can 
be better provided by an ECSU than by a member district.  The 
annual plan must include methods to increase direct services to 
school districts in cooperation with the state department of 
education.  The department may withhold all or a part of the 
money for an ECSU if the department determines that the ECSU has 
not been providing services according to its annual plan. 
    Subd. 4.  [MANAGEMENT INFORMATION CENTERS.] For management 
information subsidies: 
      $3,275,000    .....     1994 
    $356,000 in fiscal year 1994 is for software support of the 
ESV information system. 
    Subd. 5.  [SECONDARY VOCATIONAL COOPERATION AID.] For 
secondary vocational cooperative aid according to Minnesota 
Statutes, section 124.575: 
     $142,000     .....     1994
     $ 24,000     .....     1995
    The 1994 appropriation includes -$0- for 1993 and $142,000 
for 1994. 
    The 1995 appropriation includes $24,000 for 1994. 
    Subd. 6.  [DISTRICT COOPERATION REVENUE.] For cooperation 
revenue according to section 16: 
     $7,960,000       .....     1995 
    The 1995 appropriation is based on an entitlement of 
$9,364,000 for fiscal year 1995. 
    Subd. 7.  [MOUNTAIN IRON-BUHL SCHOOL DISTRICT.] For 
independent school district No. 712, Mountain Iron-Buhl: 
     $75,000     .....     1994
     $75,000     .....     1995
    Sec. 31.  [LEGISLATIVE COORDINATING COMMISSION.] 
    $15,000 is appropriated in fiscal year 1994 from the 
general fund to the legislative coordinating commission to 
reimburse the expenses of the review panel under the education 
delivery service planning and review as provided in section 25. 
    Sec. 32.  [REPEALER.] 
    Minnesota Statutes 1992, sections 124.2721; 124.2725, 
subdivision 8; and 124.575, subdivisions 2 and 4; 124.912, 
subdivisions 4 and 5, are repealed. 
    Sec. 33.  [EFFECTIVE DATE.] 
    Sections 3 and 8 are effective July 1, 1994.  Section 28, 
subdivisions 1 and 2, are effective for taxes payable in 1994 
and thereafter. 
    Sections 7, 13, 19, and 22 are effective the day following 
final enactment. 

                               ARTICLE 7 

                        COMMITMENT TO EXCELLENCE 
    Section 1.  [PURPOSE.] 
    The purpose of this article is to implement the mission of 
public education in Minnesota as stated below through innovation 
and systemic restructuring. 
    The mission of public education in Minnesota, a system for 
lifelong learning, is to ensure individual academic achievement, 
an informed citizenry, and a highly productive work force.  This 
system focuses on the learner, promotes and values diversity, 
provides participatory decision-making, ensures accountability, 
models democratic principles, creates and sustains a climate for 
change, provides personalized learning environments, encourages 
learners to reach their maximum potential, and integrates and 
coordinates human services for learners. 
    Sec. 2.  [121.602] [EDUCATIONAL EFFECTIVENESS PROGRAM.] 
    Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
educational effectiveness program are to: 
    (1) increase meaningful parental involvement in site-based 
decision making; 
    (2) improve results-oriented instructional processes; 
    (3) create flexible school-based organizational structures; 
and 
    (4) improve student achievement. 
    Subd. 2.  [ADVISORY TASK FORCE; PROGRAM 
IMPLEMENTATION.] The commissioner of education shall develop and 
maintain a program of educational effectiveness and 
results-oriented instruction.  The commissioner may appoint an 
advisory task force to assist the department of education in 
developing an implementation program for providing staff 
development to school district staff in educational 
effectiveness.  The program shall be based on established 
principles of instructional design and the essential elements of 
effective instruction as determined by educational research.  
The program shall take into account the diverse needs of the 
school districts due to such factors as district size and 
location. 
    Subd. 3.  [EVALUATION AND REPORT.] The commissioner shall 
annually provide for independent evaluation of the effectiveness 
of this section.  The evaluation shall measure the extent to 
which the outcomes defined in subdivision 1 are met and the cost 
effectiveness of any funding for the program.  The evaluation 
shall also determine to what extent the program has a measurable 
impact on student achievement at the site level. 
    Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF 
DEVELOPMENT.] The department of education shall provide 
assistance to the school districts in implementing an 
educational effectiveness program.  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.  
The department shall evaluate the performance of the service 
providers.  The staff development shall be facilitated by 
building level decision-making teams.  The staff development 
shall include clarification of individual school missions, 
goals, expectations, enhancement of collaborative planning and 
collegial relationships among the building staff, improvement of 
curriculum, assessment, instructional and organizational skills, 
improvement of financial and management skills, and planning of 
other staff development programs. 
    Subd. 5.  [SCHOOL IMPROVEMENT INCENTIVE GRANTS.] The state 
board of education shall develop criteria to provide school 
improvement incentive grants to schools sites.  The criteria 
must include the extent to which a site has implemented the 
characteristics of the educational effectiveness program and 
demonstrated improvement in student achievement of education 
outcomes.  Notwithstanding any law to the contrary, the grant 
must remain under the control of the site decision-making team 
or principal at the site and may be used for any purpose 
determined by the team.  A school board may not reduce other 
funding otherwise due the site.  A grant may not exceed $60,000 
per site in any fiscal year. 
     Sec. 3.  Minnesota Statutes 1992, 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 and communities 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. 4.  Minnesota Statutes 1992, section 121.612, 
subdivision 4, is amended to read: 
    Subd. 4.  [FOUNDATION PROGRAMS.] The foundation may develop 
programs that advance the concept of educational excellence.  
These may include, but are not limited to:  
    (a) recognition programs and awards for students 
demonstrating academic excellence; 
    (b) summer institute programs for students with special 
talents; 
    (c) recognition programs for teachers, administrators, and 
others who contribute to academic excellence; 
    (d) summer mentorship programs with business and industry 
for students with special career interests and high academic 
achievements; 
    (e) governor's awards ceremonies and special campaigns to 
promote awareness and expectation for academic competition 
achievement; and 
    (f) an academic league to provide organized challenges 
requiring cooperation and competition for public and nonpublic 
pupils in elementary and secondary schools; 
    (g) systemic transformation initiatives and assistance and 
training to community teams to increase school performance in 
the state's education institutions through strategic quality 
planning for continuous improvement, empowerment of multiple 
stakeholders, validation of results via customer-supplier 
relationships, and a total system approach based on best 
practices in key process areas; and 
    (h) activities to measure customer satisfaction for 
delivery of services to education institutions in order to plan 
for and implement continuous improvement. 
    To the extent possible, the foundation shall make these 
programs available to students in all parts of the state. 
    Sec. 5.  [121.919] [FINANCIAL MANAGEMENT ASSISTANCE AND 
TRAINING TO SCHOOL DISTRICTS AND SCHOOL SITES.] 
    The department of education shall make available to school 
districts and individual school sites assistance and training in 
financial management.  The assistance and training shall be in 
at least the following areas: 
    (1) provision of an updated uniform financial and reporting 
system manual in both hard copy and computerized form which will 
be applicable to both the school district and to a school site 
under site-based management; 
    (2) regularly scheduled training and assistance in 
accounting and financial operations, and special assistance as 
requested; 
    (3) long-term financial planning, including that involved 
with district reorganization; 
    (4) district and school level expenditure and revenue 
budgeting and other fiscal and organizational requirements, 
including that under site-based management; 
    (5) assistance with school, district, and regional capital 
budget planning; and 
    (6) the development of a model reporting system for school 
sites for resource use and outcome achievement.  The model shall 
include characteristics about the student population, staffing 
levels, and achievement results attributable to the 
instructional and organizational structure of the school site. 
    Sec. 6.  Minnesota Statutes 1992, section 123.33, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [SCHOOL BOARD MEMBER TRAINING.] A member must 
receive training in school finance and management developed in 
consultation with the Minnesota school boards association and 
consistent with section 9.  The school boards association shall 
make available to each newly-elected school board member 
training in school finance and management consistent with 
section 9 within 180 days of that member taking office.  The 
program shall be developed in consultation with the department 
of education and appropriate representatives of higher education.
    Sec. 7.  Minnesota Statutes 1992, section 123.951, is 
amended to read: 
    123.951 [SCHOOL SITE MANAGEMENT DECISION-MAKING AGREEMENT.] 
    (a) A school board may enter into an agreement with a 
school site management decision-making team concerning the 
governance, management, or control of any school in the 
district.  Upon a written request from a proposed school 
site management decision-making team, an initial school 
site management decision-making team shall be appointed by the 
school board and may include the school principal, 
representatives of teachers in the school, representatives of 
other employees in the school, representatives of parents of 
pupils in the school, representatives of pupils in the school, 
representatives of other members in the community, or others 
determined appropriate by the board.  The school site management 
decision-making team shall include the school principal or other 
person having general control and supervision of the school. 
    (b) School site management decision-making agreements must 
focus on creating management delegate powers and duties to site 
teams and in involving involve staff members, students as 
appropriate, and parents in decision making. 
    (c) An agreement may include: 
    (1) a strategic plan for districtwide decentralization of 
resources developed through staff participation; a mechanism to 
implement flexible support systems for improvement in student 
achievement of education outcomes; 
    (2) a decision-making structure that allows teachers to 
identify instructional problems and control and apply the 
resources needed to solve them; and 
    (3) a mechanism to allow principals, or other persons 
having general control and supervision of the school, to make 
decisions regarding how financial and personnel resources are 
best allocated and to act as advocates for additional resources 
on behalf of the entire school at the site and from whom goods 
or services are purchased; 
    (4) a mechanism to implement parental involvement programs 
under section 126.69 and to provide for effective parental 
communication and feedback on this involvement at the site 
level;. 
    (5) a provision that would allow the team to determine who 
is hired into licensed and nonlicensed positions; 
    (6) a provision that would allow teachers to choose the 
principal or other person having general control; 
    (7) direct contact with other social service providers; 
    (8) inservice training for site decision-making team 
members for financial management of school sites; and 
    (9) any other powers and duties determined appropriate by 
the board. 
    The school board of the district remains the legal employer 
under clauses (5) and (6). 
    (d) Any powers or duties not delegated to the school site 
management team in the school site management agreement shall 
remain with the school board. 
    (e) Approved agreements shall be filed with the 
commissioner.  If a school board denies a request to enter into 
a school site management agreement, it shall provide a copy of 
the request and the reasons for its denial to the commissioner. 
    Sec. 8.  Minnesota Statutes 1992, 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 operating a program pursuant to sections 120.59 to 
120.67, 121.585 or 125.701 to 125.705, or operating a 
commissioner-designated area learning center program under 
section 124C.49, or that otherwise receives the approval of the 
commissioner to operate its instructional program to avoid an 
aid reduction in any year, may adjust the annual school schedule 
for that program throughout the calendar year so long as the 
number of instructional hours in the year is not less than the 
number of instructional hours per day specified in the rules of 
the state board multiplied by the minimum number of 
instructional days required by subdivision 1.  
    Sec. 9.  Minnesota Statutes 1992, section 124.195, 
subdivision 10, is amended to read: 
    Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
subdivisions 8, 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, shall be paid at 90 percent 
for districts operating a program under section 121.585 for 
grades 1 to 12 for all students in the district and 85 percent 
for other districts 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. 10.  Minnesota Statutes 1992, section 124.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
    (1) all expenditures for transportation in the regular 
category, as defined in paragraph (c), clause (1), for which aid 
is authorized in section 124.223, plus 
    (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 15 percent per year for 
districts operating a program under section 121.585 for grades 1 
to 12 for all students in the district and 12-1/2 percent per 
year for other districts of the cost of the fleet, plus 
    (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
    (4) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.01, subdivision 6, paragraph (c), which were purchased after 
July 1, 1982, for authorized transportation of pupils, with the 
prior approval of the commissioner, computed on a straight line 
basis at the rate of 20 percent per year of the cost of the type 
three school buses.  
     (c) "Transportation category" means a category of 
transportation service provided to pupils as follows:  
     (1) Regular transportation is transportation services 
provided during the regular school year under section 124.223, 
subdivisions 1 and 2, excluding the following transportation 
services provided under section 124.223, subdivision 1:  
transportation between schools; noon transportation to and from 
school for kindergarten pupils attending half-day sessions; 
transportation of pupils to and from schools located outside 
their normal attendance areas under the provisions of a plan for 
desegregation mandated by the state board of education or under 
court order; and transportation of elementary pupils to and from 
school within a mobility zone. 
     (2) Nonregular transportation is transportation services 
provided under section 124.223, subdivision 1, that are excluded 
from the regular category and transportation services provided 
under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
     (3) Excess transportation is transportation to and from 
school during the regular school year for secondary pupils 
residing at least one mile but less than two miles from the 
public school they could attend or from the nonpublic school 
actually attended, and transportation to and from school for 
pupils residing less than one mile from school who are 
transported because of extraordinary traffic, drug, or crime 
hazards. 
     (4) Desegregation transportation is transportation during 
the regular school year of pupils to and from schools located 
outside their normal attendance areas under a plan for 
desegregation mandated by the state board or under court order.  
     (5) Handicapped transportation is transportation provided 
under section 124.223, subdivision 4, for pupils with a 
disability between home or a respite care facility and school or 
other buildings where special instruction required by section 
120.17 is provided. 
     (d) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services, 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
     (e) "Current year" means the school year for which aid will 
be paid.  
     (f) "Base year" means the second school year preceding the 
school year for which aid will be paid.  
     (g) "Base cost" means the ratio of: 
     (1) the sum of the authorized cost in the base year for 
regular transportation as defined in paragraph (b) plus the 
actual cost in the base year for excess transportation as 
defined in paragraph (c); 
     (2) to the sum of the number of weighted FTE pupils 
transported in the regular and excess categories in the base 
year. 
     (h) "Pupil weighting factor" for the excess transportation 
category for a school district means the lesser of one, or the 
result of the following computation: 
     (1) Divide the square mile area of the school district by 
the number of FTE pupils transported in the regular and excess 
categories in the base year. 
     (2) Raise the result in clause (1) to the one-fifth power. 
     (3) Divide four-tenths by the result in clause (2). 
     The pupil weighting factor for the regular transportation 
category is one.  
     (i) "Weighted FTE's"  means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
     (j) "Sparsity index" for a school district means the 
greater of .005 or the ratio of the square mile area of the 
school district to the sum of the number of weighted FTE's 
transported by the district in the regular and excess categories 
in the base year. 
     (k) "Density index" for a school district means the greater 
of one or the result obtained by subtracting the product of the 
district's sparsity index times 20 from two. 
     (l) "Contract transportation index" for a school district 
means the greater of one or the result of the following 
computation: 
     (1) Multiply the district's sparsity index by 20. 
     (2) Select the lesser of one or the result in clause (1). 
     (3) Multiply the district's percentage of regular FTE's 
transported in the current year using vehicles that are not 
owned by the school district by the result in clause (2). 
     (m) "Adjusted predicted base cost" means the predicted base 
cost as computed in subdivision 3a as adjusted under subdivision 
7a. 
     (n) "Regular transportation allowance" means the adjusted 
predicted base cost, inflated and adjusted under subdivision 7b. 
    Sec. 11.  Minnesota Statutes 1992, section 124.225, 
subdivision 10, is amended to read: 
    Subd. 10.  [DEPRECIATION.] Any school district that owns 
school buses or mobile units shall transfer annually from the 
undesignated fund balance account in its transportation fund to 
the reserved fund balance account for bus purchases in its 
transportation fund at least an amount equal to 15 percent per 
year for districts operating a program under section 121.585 for 
grades 1 to 12 for all students in the district and 12-1/2 
percent per year for other districts of the 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, paragraph (b), clause (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 or 
levy 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 district's transportation 
revenue under subdivision 7d.  
    Sec. 12.  Minnesota Statutes 1992, section 124.91, 
subdivision 5, is amended to read: 
    Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
with its central administrative office located within economic 
development region one, two, three, four, five, six, seven, 
eight, nine, and ten may levy apply to the commissioner of 
education for ITV revenue up to the greater of .5 percent of the 
adjusted net tax capacity of the district or $20,000 $25,000 for 
the construction, maintenance, and lease costs of an interactive 
television system for instructional purposes.  The approval by 
the commissioner of education and the application procedures set 
forth in subdivision 1 shall apply to the levy authority revenue 
in this subdivision.  In granting the approval, the commissioner 
must consider whether the district is maximizing efficiency 
through peak use and off-peak use pricing structures. 
    (b) To obtain ITV revenue, a district may levy an amount 
not to exceed the district's ITV revenue times the lesser of one 
or the ratio of: 
    (1) the quotient derived by dividing the adjusted net tax 
capacity of the district for the year before the year the levy 
is certified by the actual pupil units in the district for the 
year prior to the year the levy is certified; to 
    (2) 100 percent of the equalizing factor as defined in 
section 124A.02, subdivision 8, for the year to which the levy 
is attributable. 
    (c) A district's ITV aid is the difference between its ITV 
revenue and the ITV levy. 
    Sec. 13.  Minnesota Statutes 1992, section 124.912, is 
amended by adding a subdivision to read: 
    Subd. 8.  [OUTPLACEMENT LEVY.] Upon the recommendation of a 
school's mentoring team, a school district may levy the amounts 
necessary to pay the cost of outplacement services for licensed 
teachers, including counseling and job search costs. 
    Sec. 14.  Minnesota Statutes 1992, section 124A.29, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STAFF DEVELOPMENT, AND VIOLENCE PREVENTION 
PARENTAL INVOLVEMENT PROGRAMS REVENUE.] (a) Of a district's 
basic revenue under section 124A.22, subdivision 2, an amount 
equal to $15 one percent in fiscal year 1994, two percent in 
fiscal year 1995, and thereafter times the formula allowance 
times the number of actual pupil units shall be reserved and may 
be used only to provide staff time for in-service education 
for violence prevention programs under section 126.77, 
subdivision 2, challenging instructional activities and 
experiences or staff development programs, including 
outcome-based education, for the purpose of improving student 
achievement of education outcomes under section 126.70, 
subdivisions 1 and 2a.  The school board shall determine the 
staff development activities to provide, the manner in which 
they will be provided, and the extent to which other local funds 
may be used to supplement staff development activities.  The 
school board shall initially allocate 50 percent of the revenue 
to each school site in the district on a per teacher basis.  The 
board may retain 25 percent to be used for district wide staff 
development efforts.  The remaining 25 percent of the revenue 
shall be used to make grants to school sites that demonstrate 
exemplary use of allocated staff development revenue.  A grant 
may be used for any purpose determined by the site 
decision-making team.  The site decision-making team must 
demonstrate to the school board the extent to which staff at the 
site have met the outcomes of the program.  The board may 
withhold a portion of initial allocation of revenue if the staff 
development outcomes are not being met. 
    (b) Of a district's basic revenue under section 124A.22, 
subdivision 2, an amount equal to $5 times the number of actual 
pupil units must be reserved and may be used only to provide 
parental involvement programs that implement section 126.69.  A 
district may use up to $1 of the $5 times the number of actual 
pupil units for promoting parental involvement in the PER 
process. 
    Sec. 15.  Minnesota Statutes 1992, section 124A.291, is 
amended to read: 
    124A.291 [RESERVED REVENUE FOR CAREER CERTAIN TEACHER 
PROGRAM.] 
    A district that has a career teacher program or a 
mentor-teacher program may reserve part of the basic revenue 
under section 124A.22, subdivision 2, for the district's 
share, according to section 124.276, of the portion of the 
teaching contract that is in addition to the standard teaching 
contract of the district. 
    Sec. 16.  [124A.292] [STAFF DEVELOPMENT INCENTIVE.] 
    Subdivision 1.  [ELIGIBILITY.] A school site is eligible 
for revenue under this section if it has implemented an 
outplacement program on an ongoing basis to counsel staff and 
has implemented a program according to section 125.231. 
    Subd. 2.  [REVENUE.] Staff development incentive revenue is 
equal to the number of teachers at the site times $25. 
    Subd. 3.  [STAFF DEVELOPMENT LEVY.] A district's levy 
equals its revenue times the lesser of one or the ratio of the 
district's adjusted net tax capacity per actual pupil unit for 
the year before the year the levy is certified to the equalizing 
factor for the school year to which the levy is attributable. 
    Subd. 4.  [STAFF DEVELOPMENT AID.] A district's aid equals 
its revenue minus its levy times the ratio of the actual amount 
levied to the permitted levy. 
    Subd. 5.  [USE.] The revenue must be used at the site for 
staff development purposes. 
    Sec. 17.  Minnesota Statutes 1992, section 125.05, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
(a) The board of teaching shall issue licenses under its 
jurisdiction to persons the board finds to be qualified and 
competent for their respective positions. 
    (b) The board shall require a person to successfully 
complete an examination of skills in reading, writing, and 
mathematics before being admitted to a post-secondary teacher 
preparation program approved by the board if that person seeks 
to qualify for an initial teaching license to provide direct 
instruction to pupils in kindergarten, elementary, secondary, or 
special education programs. 
    (c) Before admission to a pilot internship program, the 
board shall require a person to successfully complete an 
examination of general pedagogical knowledge.  Before granting a 
first continuing license to participants in the pilot projects, 
the board shall require a person to successfully complete a 
supervised and assessed internship in a professional development 
school and an examination of licensure-specific teaching 
skills.  The board shall determine effective dates for the 
examination of general pedagogical knowledge, the internship, 
and examinations of licensure-specific skills. 
    Sec. 18.  Minnesota Statutes 1992, section 125.138, is 
amended to read: 
    125.138 [FACULTY EXCHANGE AND TEMPORARY ASSIGNMENT 
PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
exchange is collaboration shall be established to allow school 
districts and post-secondary institutions to arrange temporary 
exchanges between members of their instructional 
staffs placements in each other's institutions.  These 
arrangements must be made on a voluntary cooperative basis 
between a school district and post-secondary institution, or 
between post-secondary institutions.  Exchanges between 
post-secondary institutions may occur among campuses in the same 
system or in different systems. 
    Subd. 2.  [USES OF PROGRAM.] Each participating school 
district and post-secondary institution may determine the way in 
which the instructional staff member's time is to be used, but 
it must be in a way that promotes understanding of the needs of 
each educational system or institution.  For example, a public 
school teacher educator may teach courses, provide counseling 
and tutorial services, assist with the preparation of future 
teachers educators, or take professional development courses.  A 
post-secondary teacher might teach advanced placement courses or 
other classes to aid an underserved population at the school 
district, counsel students about future educational plans, or 
work with teachers to better prepare students for post-secondary 
education in school administration.  Participation need not be 
limited to one school or institution and may involve other 
groups including educational cooperative service units. 
    Subd. 3.  [SALARIES; BENEFITS; CERTIFICATION.] 
Exchanges Temporary placements made under the program must not 
have a negative effect on participants' salaries, seniority, or 
other benefits.  Notwithstanding sections 123.35, subdivision 6, 
and 125.04, a member of the instructional staff of a 
post-secondary institution may teach in an elementary or 
secondary school or perform a service, agreed upon according to 
this section, for which a license would otherwise be required 
without holding the applicable license.  In addition, a licensed 
teacher educator employed by a school district may teach or 
perform a service, agreed upon according to this section, at a 
post-secondary institution without meeting the applicable 
qualifications of the post-secondary institution.  A school 
district is not subject to section 124.19, subdivision 3, as a 
result of entering into an agreement according to this section 
that enables a post-secondary instructional staff member 
educator to teach or provide services in the district.  All 
arrangements and details regarding the exchange must be mutually 
agreed to by each participating school district and 
post-secondary institution before implementation. 
    Subd. 4.  [EDUCATORS' EMPLOYMENT; CONTINUATION.] An 
educator who held a temporary position or an exchanged position 
under section 125.138 shall be continued in or restored to the 
position previously held, or to a position of like seniority, 
status, and pay upon return.  Retirement benefits under an 
employer-sponsored pension or retirement plan shall not be 
reduced because of time spent on an exchange or temporary 
position under section 125.138. 
    Subd. 5.  [ENTITLEMENT TO BENEFITS AND POSITION.] An 
educator who is continued in or restored to a position in 
accordance with subdivision 4: 
    (1) shall be continued or restored without loss of 
seniority; and 
    (2) may participate in insurance or other benefits offered 
by the employer under its established rules and practices. 
    Subd. 6.  [GRANTS.] The department of education shall award 
grants to public post-secondary teacher preparation programs and 
school districts that collaborate on staff exchanges or 
temporary placements.  One institution must be identified as the 
fiscal agent for the grant. 
    Subd. 7.  [PURPOSE OF THE GRANTS.] School districts and 
post-secondary institutions are encouraged to collaborate by 
allowing educators to exchange positions, team teach, or hold 
temporary positions of no longer than one academic year in the 
other's institutions.  No loss of salary or benefits shall 
occur.  Grants shall be used to ensure no loss of status, 
retirement, and insurance benefits. 
    Subd. 8.  [APPLICATION PROCESS.] The department of 
education shall develop and publicize the process by which 
school districts, the University of Minnesota and its campuses, 
and the state universities which have teacher and administrator 
preparation programs may apply for grants. 
    Subd. 9.  [CRITERIA.] The department of education shall 
evaluate proposals using the following criteria: 
    (1) evidence of collaborative arrangements between 
post-secondary educators and early childhood through grade 12 
educators; 
    (2) evidence that outstanding early childhood through grade 
12 educators will be involved in post-secondary classes and 
programs, including presentations, discussions, teaming, and 
responsibility for teaching some post-secondary courses; 
    (3) evidence that post-secondary educators will have direct 
experience working in a classroom or school district, including 
presentations, discussions, teaming, and responsibility for 
teaching some early childhood through grade 12 classes; and 
    (4) evidence of adequate financial support from employing 
and receiving institutions. 
    Subd. 10.  [EVALUATION.] The department of education shall 
evaluate the results of the grants provided under subdivision 6 
and make recommendations to the legislature and governor 
regarding future funding in the 1995 biennial budget document. 
    Subd. 11.  [GRANT LIMITATIONS; PROPOSALS.] All grants shall 
be for salary and benefit costs beyond those normally covered by 
each of the institutions involved in the exchange or temporary 
assignment.  Staff exchanging positions or placed in temporary 
assignments shall not suffer loss of salary, benefits, or 
retirement benefits.  A grant from the department of education 
shall cover 50 percent of the excess costs with the remainder of 
the excess costs shared equally by the school district and the 
post-secondary institution. 
    Sec. 19.  [125.178] [ELEMENTARY PREPARATION TIME.] 
    The school board and the exclusive representative of the 
teachers may negotiate an agreement to provide daily preparation 
time for elementary school teachers.  Failing to successfully 
negotiate such an agreement, provisions of Minnesota Rules, part 
3500.1400, subpart 3, apply. 
    Sec. 20.  [125.230] [TEACHING RESIDENCY PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A school district with a 
teaching residency plan approved by the board of teaching may 
hire graduates of approved Minnesota teacher preparation 
programs as teaching residents.  A district shall employ each 
resident for one school year.  The district and the resident may 
agree to extend the residency for one additional school year.  A 
school may employ no more than one teaching resident for every 
eight full-time equivalent licensed teachers.  No more than 600 
eligible teachers may be employed as teacher residents in any 
one school year. 
    Subd. 2.  [TEACHER ELIGIBILITY.] Persons eligible to be 
hired as teaching residents must have received their initial 
license no more than two years prior to applying for a residency 
and must have less than nine months of full-time equivalency 
teaching experience as a licensed teacher. 
    Subd. 3.  [PROGRAM COMPONENTS.] In order to be approved by 
the board of teaching, a school district's residency program 
must at minimum include: 
    (1) training to prepare teachers to serve as mentors to 
teaching residents; 
    (2) a team mentorship approach to expose teaching residents 
to a variety of teaching methods, philosophies, and classroom 
environments; 
    (3) ongoing peer coaching and assessment; 
    (4) assistance to the teaching resident in preparing an 
individual professional development plan that includes goals, 
activities, and assessment methodologies; and 
    (5) involvement of resource persons from higher education 
institutions, career teachers, and other community experts to 
provide local or regional professional development seminars or 
other structured learning experiences for teaching residents. 
    A teaching resident shall not be given direct classroom 
supervision responsibilities that exceed 80 percent of the 
instructional time required of a full-time equivalent teacher in 
the district.  During the remaining time, a teaching resident 
shall participate in professional development activities 
according to the individual plan developed by the resident in 
conjunction with the school's mentoring team. 
    Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district shall 
pay a teaching resident a salary equal to 75 percent of the 
statewide average salary of a first-year teacher with a 
bachelor's degree.  The resident shall be a member of the local 
bargaining unit and shall be covered under the terms of the 
contract, except for salary and benefits, unless otherwise 
provided in this subdivision.  The school district shall provide 
health insurance coverage for the resident if the district 
provides it for teachers, and may provide other benefits upon 
negotiated agreement. 
    Subd. 5.  [APPLIES TOWARD PROBATIONARY PERIOD.] A teaching 
residency shall count as one year of a teacher's probationary 
period under section 125.12, subdivision 3, or section 125.17, 
subdivision 2.  A residency extended for one year shall not 
count as an additional year under this subdivision. 
    Subd. 6.  [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 
school district with an approved teaching residency program may 
use learning and development revenue for each teaching resident 
in kindergarten through grade six.  A district also may use the 
revenue for a paraprofessional who is a person of color enrolled 
in an approved teacher preparation program.  A school district 
shall not use a teaching resident to replace an existing 
teaching position. 
    Subd. 7.  [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] (a) 
The board of teaching shall develop for teachers of students in 
pre-K through grade 12, model teaching residency outcomes and 
assessments, and mentoring programs. 
    (b) The board of teaching shall report to the education 
committees of the legislature by February 15, 1994, on 
developing a residency program as part of teacher licensure.  
The report shall at least discuss: 
    (1) whether a teacher residency program should be a 
prerequisite to obtaining an initial teaching license or a 
continuing teacher license; 
     (2) the number of teacher residency positions available 
statewide by school district; 
     (3) how a teacher residency program and a mentorship 
program for school teachers can be structured; 
    (4) whether additional state funding for teacher residency 
programs is required; 
     (5) the interrelationship between existing teacher 
preparation programs and a teacher residency program; 
     (6) issues related to implementing a teacher residency 
program, including a timeline for implementing the program; and 
     (7) how a teacher residency program may impact upon a 
teacher licensed in another state who seeks a teaching position 
in Minnesota. 
    Sec. 21.  Minnesota Statutes 1992, section 125.231, is 
amended to read: 
     125.231 [TEACHER ASSISTANCE THROUGH MENTORSHIP PROGRAM.] 
    Subdivision 1.  [TEACHER MENTORING PROGRAM PROGRAMS.] 
School districts are encouraged to participate in a competitive 
grant program that explores develop teacher mentoring programs 
for teachers new to the profession or district, or for including 
teaching residents, teachers with special needs, or experienced 
teachers in need of peer coaching.  
    Subd. 2.  [TEACHER MENTORING TASK FORCE.] The commissioner 
board of teaching shall appoint and work with a teacher 
mentoring task force including representatives of the two 
teachers unions, the two principals organizations, school boards 
association, administrators association, board of teaching 
department of education, parent teacher association, 
post-secondary institutions, foundations, and the private 
sector.  Representation on the task force by populations of 
color shall reflect the proportion of people of color in the 
public schools. 
    The task force shall: 
    (1) develop the application forms, criteria, and procedures 
for the grants for mentorship program programs; 
    (2) select sites to receive mentorship grant funding; and 
    (3) provide ongoing support and direction for mentorship 
program implementation in school districts, including those that 
do not receive mentorship grants.  
    Subd. 3.  [APPLICATIONS.] The commissioner of education 
board of teaching shall make application forms available to 
sites interested in developing or expanding a mentorship 
program.  A school district, a group of school districts, or a 
coalition of districts, teachers and teacher education 
institutions may apply for a teacher mentorship program grant.  
The commissioner board of teaching, in consultation with the 
teacher mentoring task force, shall approve or disapprove the 
applications.  To the extent possible, the approved applications 
must reflect effective mentoring components, include a variety 
of coalitions and be geographically distributed throughout the 
state.  The commissioner of education board of teaching shall 
encourage the selected sites to consider the use of the its 
assessment procedures developed by the board of teaching.  
    Subd. 4.  [CRITERIA FOR SELECTION.] At a minimum, 
applicants must express commitment to: 
    (1) allow staff participation; 
    (2) assess skills of both beginning and mentor teachers; 
    (3) provide appropriate in-service to needs identified in 
the assessment; 
    (4) provide leadership to the effort; 
    (5) cooperate with higher education institutions; 
    (6) provide facilities and other resources; and 
    (7) share findings, materials, and techniques with other 
school districts. 
    Subd. 5.  [ADDITIONAL FUNDING.] Applicants are required to 
seek additional funding and assistance from sources such as 
school districts, post-secondary institutions, foundations, and 
the private sector. 
    Subd. 7.  [PROGRAM IMPLEMENTATION.] New and expanding 
mentorship sites that are funded to design, develop, implement, 
and evaluate their program must participate in activities that 
support program development and implementation.  The department 
of education board of teaching must provide resources and 
assistance to support new sites in their program efforts.  These 
activities and services may include, but are not limited to:  
planning, planning guides, media, training, conferences, 
institutes, and regional and statewide networking meetings.  
Nonfunded schools or districts interested in getting started may 
participate in some activities and services.  Fees may be 
charged for meals, materials, and the like. 
    Sec. 22.  [126.019] [SCHOOL RESTRUCTURING PROGRAM.] 
    Subdivision 1.  [LEVY AUTHORITY.] (a) The purpose of school 
district restructuring pilots is to examine practices and 
organizational structure for improvement of student achievement 
of education outcomes through site decision-making.  A school 
district may submit an application to the department of 
education for school district restructuring levy authority.  The 
authority may be for up to $50 times the number of actual pupil 
units at the site.  The levy is available for the fiscal year 
for which the pilot receives approval and for the subsequent 
four years.  A district need only apply once for this 
authority.  The actual amount of levy authority given shall 
depend on the level of power and control delegated to a site 
under section 123.951.  The state board, upon consultation of 
the education chairs of the legislature, shall determine 
criteria for measuring this level and allocating the appropriate 
levy authority.  The criteria may include a provision that would 
allow the site decision-making team to request waivers from the 
master contract between the school board and the collective 
bargaining representative in the district.  Notwithstanding any 
law to the contrary, the state board of education and the state 
board of teaching may grant waivers that would apply only to a 
single site within the district from any board rule.  The levy 
authority may be increased or decreased by the state board if a 
district changes implementation of this section.  Revenue from 
the levy must be under the control of local site decision-making 
team and may be used for any purpose determined by the team.  
All information about education achievement and effective 
reduction in elementary learner-instructor ratios at the school 
site must be made available to the public.  Each school board 
must communicate the availability of this authority to each 
school site in the district. 
    (b) The local levy shall be matched dollar for dollar with 
state aid.  The commissioner shall not approve total levy 
authority in excess of available state appropriations. 
    Subd. 2.  [REPORT.] The state board shall report on the 
implementation of this section and learning improvement results 
to the education committees of the legislature on February 1 of 
each year.  The board shall also develop model reporting forms 
for districts to use to report to local communities.  The board 
shall develop these forms in consultation with the department 
and the chairs of the education committees of the legislature. 
    Sec. 23.  Minnesota Statutes 1992, section 126.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
attending an eligible program full time under subdivision 3, 
paragraph (d), the department of education shall pay 88 percent 
of the basic revenue of the district to the eligible program and 
12 percent of the basic revenue to the resident district within 
30 days after the eligible program verifies enrollment using the 
form provided by the department.  For a pupil attending an 
eligible program part time, basic revenue shall be reduced 
proportionately, according to the amount of time the pupil 
attends the program, and the payments to the eligible program 
and the resident district shall be reduced accordingly.  A pupil 
for whom payment is made according to this section may not be 
counted by any district for any purpose other than computation 
of basic revenue, according to section 124A.22, subdivision 2.  
If payment is made for a pupil under this subdivision, a school 
district shall not reimburse a program under section 126.23 for 
the same pupil. 
    (b) The department of education shall pay up to 100 percent 
of the basic revenue to the eligible program if there is an 
agreement to that effect between the school district and the 
eligible program. 
    Sec. 24.  Minnesota Statutes 1992, section 126.70, is 
amended to read: 
    126.70 [STAFF DEVELOPMENT PLAN PROGRAM.] 
    Subdivision 1.  [ELIGIBILITY FOR REVENUE STAFF DEVELOPMENT 
COMMITTEE.] A school board may shall use the revenue authorized 
in section 124A.29 for in-service education for violence 
prevention programs under section 126.77, subdivision 2, or if 
it establishes a staff development advisory committee and adopts 
a for staff development plan under this subdivision.  The board 
must establish a staff development committee to develop the 
plan, advise a site decision-making team about the plan, and 
evaluate staff development efforts at the site level.  A 
majority of the advisory committee must be teachers representing 
various grade levels and subject areas.  The advisory committee 
must also include parents and administrators.  The advisory 
committee shall develop a staff development plan that includes 
related expenditures and shall submit the plan to the school 
board.  If the school board approves the plan, the district may 
use the staff development revenue authorized in section 
124A.29.  Districts must submit approved plans shall report 
staff development results to the commissioner in the form and 
manner determined by the commissioner. 
    Subd. 2.  [CONTENTS OF THE PLAN.] The plan may must include:
    (1) procedures the district will use to analyze education 
needs; 
    (2) methods for integrating education needs with in-service 
and curricular efforts already in progress; 
    (3) education goals and outcomes under subdivision 2a, the 
means to achieve the goals; outcomes and 
    (4) procedures for evaluating progress at each school site 
toward meeting education needs and goals outcomes.  
    Subd. 2a.  [PERMITTED USES STAFF DEVELOPMENT OUTCOMES.] A 
school board may approve a (a) The staff development committee 
shall adopt a staff development plan to accomplish any of the 
following purposes for the improvement of student achievement of 
education outcomes.  The plan must be consistent with education 
outcomes determined by the school board.  The plan shall include 
the following outcomes: 
    (1) foster readiness for learning; 
    (2) facilitate organizational changes by enabling a 
site-based team composed of pupils, parents, school personnel, 
and community members to address pupils' needs; 
    (3) develop programs to increase pupils' educational 
progress by developing appropriate outcomes and personal 
learning goals and by encouraging pupils and their parents to 
assume responsibility for their education; 
    (4) design and develop programs containing various 
instructional opportunities that recognize pupils' individual 
needs and utilize family and community resources; 
    (5) evaluate the effectiveness of education policies, 
processes, and products through appropriate evaluation 
procedures that include multiple criteria and indicators; 
    (6) provide staff time or mentorship oversight for peer 
review of probationary, continuing contract, and nonprobationary 
teachers; 
    (7) train elementary and secondary staff to help students 
learn to resolve conflicts in effective, nonviolent ways; and 
    (8) encourage staff to teach and model violence prevention 
policy and curricula that address issues of sexual and racial 
harassment; and 
    (9) teach elementary and secondary staff to effectively 
meet the needs of children with disabilities within the regular 
classroom setting. 
    (b) If a school board approves a plan to accomplish any of 
the purposes listed in paragraph (a), it must also provide 
challenging instructional activities and experiences that 
recognize and cultivate students' advanced abilities and talents.
    Sec. 25.  [SUPERVISORY LICENSURE.] 
    All administrative and supervisory licensure rules adopted 
or amended by the state board of education must include outcomes 
relating to financial management practices of school districts 
and buildings. 
    Sec. 26.  [TEACHER COMPENSATION TASK FORCE.] 
    Subdivision 1.  [ESTABLISHED.] A teacher compensation task 
force is established under the state board of education.  The 
board shall initially organize the task force and prepare any 
reports to the legislature.  The department of education shall 
assist the board as required. 
    Subd. 2.  [MEMBERSHIP.] The task force shall consist of the 
following members: 
    One member each representing: 
    (1) the state board of education; 
    (2) the Minnesota business partnership; 
    (3) school principals; 
    (4) Minnesota association of school administrators; 
    (5) a parent of a student with disabilities; 
    (6) Minnesota congress of parents, teachers, and students; 
and 
    (7) the bureau of mediation services. 
    Three members representing the Minnesota school boards 
association and two members each representing the Minnesota 
education association and the Minnesota federation of teachers. 
    Subd. 3.  [PURPOSE AND DUTIES.] The purpose of the task 
force is to study and recommend alternatives to a teacher 
compensation system based on training and experience to one that 
may include compensation based on knowledge, skills, 
responsibilities, or other considerations.  Specifically, the 
task force must identify the knowledge, skills, and abilities 
needed by teachers to: 
    (1) identify, communicate, and measure outcomes at a school 
site; 
    (2) improve educational instruction to achieve expected 
outcomes at a school site; 
    (3) evaluate peers and make other related personnel 
decisions at a school site; 
    (4) manage organizational and financial needs at a school 
site; 
    (5) undertake duties that would lead to the improvement in 
the achievement of educational outcomes at either the district 
level or the school site; and 
    (6) identify personal staff development and educational 
needs to help students in achieving the student's educational 
outcomes. 
    The task force shall make a preliminary report on February 
1, 1994, and a final report on February 1, 1995, to the 
education committees of the legislature. 
    Sec. 27.  [GRADUATION RULE ACCELERATION.] 
    $5,188,000 in fiscal year 1994 and $5,188,000 in fiscal 
year 1995 is appropriated to the department of education for 
accelerated development of the state board of education high 
school graduation rule.  Of this amount, $5,000,000 each year is 
from the general fund and $188,000 each year is from the special 
revenue fund.  The appropriation is to be used to fund 
assessment and standards pilot sites; to broaden public 
understanding of the rule through local public meeting and focus 
groups, citizens forums, and other general communication; to 
continue development of curriculum frameworks; for ongoing 
statewide assessment efforts; and to develop system performance 
standards.  The appropriation from the special revenue fund may 
be used for development efforts in health-related outcomes.  Any 
amount of this appropriation does not cancel and shall be 
carried forward to the following fiscal year.  Notwithstanding 
any law to the contrary, the commissioner may contract for 
national expertise and related services in each of the 
development areas. 
    Sec. 28.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [AREA LEARNING CENTER GRANTS.] For grants to area 
learning centers:  
     $150,000    .....    1994 
     $150,000    .....    1995 
    Subd. 3.  [ADVANCED PLACEMENT AND INTERNATIONAL 
BACCALAUREATE PROGRAMS.] For the state advanced placement and 
international baccalaureate programs, including training 
programs, support programs, and examination fee subsidies: 
     $300,000     .....     1994
     $300,000     .....     1995
    Subd. 4.  [NSF MATH-SCIENCE SYSTEMIC INITIATIVE.] To meet 
requirements for a proposal to the National Science Foundation 
for a systemic initiative in mathematics and science: 
     $1,500,000     .....     1994
     $1,500,000     .....     1995
    This appropriation is not contingent upon receiving funding 
from the National Science Foundation. 
    Subd. 5.  [EDUCATIONAL EFFECTIVENESS.] For educational 
effectiveness programs according to Minnesota Statutes, sections 
121.608 and 121.609: 
     $870,000     .....     1994
     $870,000     .....     1995
    Subd. 6.  [INTERNET.] To provide statewide access to 
INTERNET for elementary and secondary schools: 
     $200,000     .....     1994
     $200,000     .....     1995
    Any balance remaining in the first year does not cancel but 
is available in the second year. 
    Subd. 7.  [ACADEMIC EXCELLENCE FOUNDATION.] (a) For the 
academic excellence foundation according to Minnesota Statutes, 
section 121.612:  
     $525,000     .....     1994
     $525,000     .....     1995
    (b) Up to $50,000 each year is contingent upon the match of 
$1 in the previous year from private sources consisting of 
either direct monetary contributions or in-kind contributions of 
related goods or services, for each $1 of the appropriation.  
The commissioner of education must certify receipt of the money 
or documentation for the private matching funds or in-kind 
contributions.  The unencumbered balance from the amount 
actually appropriated from the contingent amount in 1994 does 
not cancel but is available in 1995.  The amount carried forward 
must not be used to establish a larger annual base appropriation 
for later fiscal years. 
    (c) Approximately $265,000 each year is for the 
foundation's partners for quality initiative. 
    Subd. 8.  [ENVIRONMENTAL EDUCATION.] For distributing 
materials and conducting workshops to implement model K-12 
environmental education curriculum integration described in Laws 
1991, chapter 254, article 1, section 14, subdivision 5, 
paragraph (a): 
     $60,000     .....     1994
    Any balance remaining in the first year does not cancel but 
is available in the second year. 
    Subd. 9.  [ITV LEVY AID.] For ITV levy aid under section 24:
  $2,681,000     .....     1995 
    The appropriation anticipates an entitlement of $3,154,200 
for fiscal year 1995. 
    Subd. 10.  [SCHOOL IMPROVEMENT INCENTIVE GRANTS.] For 
grants to school improvement incentive sites under section 3: 
    $125,000     .....     1994 
      $125,000    .....    1995 
    Subd. 11.  [SCHOOL RESTRUCTURING GRANTS.] For school 
restructuring grants under section 22: 
      $500,000    .....    1995
    This appropriation does not cancel. 
    Up to $100,000 of this amount may be used for a grant to a 
nonstate organization to develop systemic site decision making 
models. 
    Subd. 12.  [EXCHANGE AND TEMPORARY ASSIGNMENT PROGRAMS.] 
For faculty exchange, and temporary assignment programs 
according to Minnesota Statutes, section 125.138: 
      $75,000    .....    1994
    This appropriation is available until June 30, 1995. 
    Subd. 13.  [STAFF DEVELOPMENT INCENTIVE.] For staff 
development incentives: 
      $100,000    .....    1994
    This appropriation is available until June 30, 1995. 
    Sec. 29.  [APPROPRIATIONS.] 
    Subdivision 1.  [HECB.] The sums appropriated in this 
section are appropriated from the general fund to the higher 
education coordinating board for the fiscal years designated. 
    Subd. 2.  [SUMMER PROGRAM SCHOLARSHIPS.] For scholarship 
awards for summer programs according to Minnesota Statutes, 
section 126.56:  
     $214,000    .....    1994 
     $214,000    .....    1995 
    Of this appropriation, any amount required by the higher 
education coordinating board may be used for the costs of 
administering the program. 
    Sec. 30.  [MINNESOTA HUMANITIES COMMISSION.] 
    (a) $325,000 in fiscal year 1994 and $325,000 in fiscal 
year 1995 is appropriated from the general fund to the Minnesota 
Humanities Commission for the Minnesota Institute for the 
Advancement of Teaching. 
    (b) The money is for the institute to conduct noncredit 
seminars for Minnesota's K-12 teachers.  The seminars must be 
interdisciplinary, employ varied methods of teaching and 
learning, incorporate community resources in a creative and 
instructive manner, and be dedicated to the professional 
development of K-12 teachers. 
    (c) The money is also for the institute to begin an alumni 
program to assist teachers who have attended the seminars to 
provide programs for teachers in their districts who cannot 
attend the residential seminars. 
    (d) The humanities commission may seek and accept private 
sector money for the institute to supplement these 
appropriations. 
    Sec. 31.  [REPEALER.] 
    Minnesota Statutes 1992, sections 121.609; 124A.27, 
subdivisions 1 to 9; and 125.185, subdivision 4a, are repealed 
July 1, 1993. 
    Sec. 32.  [EFFECTIVE DATE.] 
    Section 19 remains in effect until July 1, 1995. 

                                ARTICLE 8

                        OTHER EDUCATION PROGRAMS 
    Section 1.  Minnesota Statutes 1992, section 124.195, 
subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
hundred percent of the aid for the current fiscal year must be 
paid for the following aids:  management information center 
subsidies, according to section 121.935; reimbursement for 
transportation to post-secondary institutions, according to 
section 123.3514, subdivision 8; aid for the program for adults 
with disabilities, according to section 124.2715, subdivision 2; 
school lunch aid, according to section 124.646; tribal contract 
school aid, according to section 124.85; hearing impaired 
support services aid, according to section 121.201; Indian 
post-secondary preparation grants according to section 124.481; 
integration grants according to Laws 1989, chapter 329, article 
8, section 14, subdivision 3; and debt service aid according to 
section 124.95, subdivision 5. 
    Sec. 2.  [124.6469] [SCHOOL BREAKFAST PROGRAM.] 
    Subdivision 1.  [PURPOSE.] The purpose of the school 
breakfast program is to provide affordable morning nutrition to 
children so that they can effectively learn. 
    Subd. 2.  [PROGRAM.] The state school breakfast program 
enables schools participating in the federal School Breakfast 
Program to cover their costs for breakfast. 
    Subd. 3.  [PROGRAM REIMBURSEMENT.] State funds are provided 
to reimburse school breakfasts.  Each school year, the state 
shall reimburse schools in the amount of 5.1 cents for each 
fully paid breakfast and for each free and reduced price 
breakfast not eligible for the "severe need" rate. 
    Sec. 3.  Minnesota Statutes 1992, section 124.912, 
subdivision 2, is amended to read: 
    Subd. 2.  [DESEGREGATION.] Each year, special school 
district No. 1, Minneapolis, may levy an amount not to exceed 
$197 times its actual pupil units for that fiscal year; 
independent school district No. 625, St. Paul, may levy an 
amount not to exceed a gross tax rate of .80 percent times the 
adjusted gross tax capacity of the district for taxes payable in 
1990 or a net tax rate of 1.0 percent times the adjusted net tax 
capacity of the district for taxes payable in 1991 and 
thereafter $197 times its actual pupil units for that fiscal 
year; and independent school district No. 709, Duluth, may levy 
an amount not to exceed the sum of $660,000 and the amount 
raised by a tax rate of 2.0 percent times the adjusted net tax 
capacity of the district.  Notwithstanding section 121.904, the 
entire amount of this levy shall be recognized as revenue for 
the fiscal year in which the levy is certified.  This levy shall 
not be considered in computing the aid reduction under section 
124.155. 
    Sec. 4.  Minnesota Statutes 1992, section 124.912, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
required to implement a plan according to the requirements of 
Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
amount not to exceed a net tax rate of 2.0 percent times the 
adjusted net tax capacity of the district for taxes payable in 
1991 and thereafter.  Independent school district No. 625, St. 
Paul, A district that levies according to subdivision 2 may not 
levy according to this subdivision.  Notwithstanding section 
121.904, the entire amount of this levy shall be recognized as 
revenue for the fiscal year in which the levy is certified.  
This levy shall not be considered in computing the aid reduction 
under section 124.155.  
    Sec. 5.  Minnesota Statutes 1992, section 124.916, 
subdivision 2, is amended to read: 
    Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
payable in 1993 and 1994 and 1995 only, a school district may 
levy an amount up to the amount the district is required by the 
collective bargaining agreement in effect on March 30, 1992, to 
pay for health insurance or unreimbursed medical expenses for 
licensed and nonlicensed employees who have terminated services 
in the employing district and withdrawn from active teaching 
service or other active service, as applicable, before July 1, 
1992.  The total amount of the levy each year may not exceed 
$300,000.  
    Notwithstanding section 121.904, 50 percent of the proceeds 
of this levy shall be recognized in the fiscal year in which it 
is certified. 
     Sec. 6.  Minnesota Statutes 1992, section 124.916, 
subdivision 3, is amended to read: 
    Subd. 3.  [MINNEAPOLIS CIVIL SERVICE RETIREMENT LEVIES.] (1)
In addition to the excess levy authorized in 1976 any district 
within a city of the first class which was authorized in 1975 to 
make a retirement levy under Minnesota Statutes 1974, section 
275.127 and chapter 422A may levy an amount per pupil unit which 
is equal to the amount levied in 1975 payable 1976, under 
Minnesota Statutes 1974, section 275.127 and chapter 422A, 
divided by the number of pupil units in the district in 
1976-1977. 
    (2) In 1979 and each year thereafter, any district which 
qualified in 1976 for an extra levy under clause (1) shall be 
allowed to levy the same amount as levied for retirement in 1978 
under this clause reduced each year by ten percent of the 
difference between the amount levied for retirement in 1971 
under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
422.54 and the amount levied for retirement in 1975 under 
Minnesota Statutes 1974, section 275.127 and chapter 422A. 
    (3) In 1991 and each year thereafter, a district to which 
this subdivision applies may levy an additional amount required 
for contributions to the Minneapolis employees retirement fund 
as a result of the maximum dollar amount limitation on state 
contributions to the fund imposed under section 422A.101, 
subdivision 3.  The additional levy shall not exceed the most 
recent amount certified by the board of the Minneapolis 
employees retirement fund as the district's share of the 
contribution requirement in excess of the maximum state 
contribution under section 422A.101, subdivision 3.  
    (4) For taxes payable in 1994 and thereafter, special 
school district No. 1, Minneapolis, and independent school 
district No. 625, St. Paul, may levy for the increase in the 
employer retirement fund contributions, under Laws 1992, chapter 
598, article 5, section 1.  Notwithstanding section 121.904, the 
entire amount of this levy may be recognized as revenue for the 
fiscal year in which the levy is certified.  This levy shall not 
be considered in computing the aid reduction under section 
124.155. 
    (5) If the employer retirement fund contributions under 
section 354A.12, subdivision 2a, are increased for fiscal year 
1994 or later fiscal years, special school district No. 1, 
Minneapolis, and independent school district No. 625, St. Paul, 
may levy in payable 1994 or later an amount equal to the amount 
derived by applying the net increase in the employer retirement 
fund contribution rate of the respective teacher retirement fund 
association between fiscal year 1993 and the fiscal year 
beginning in the year after the levy is certified to the total 
covered payroll of the applicable teacher retirement fund 
association.  Notwithstanding section 121.904, the entire amount 
of this levy may be recognized as revenue for the fiscal year in 
which the levy is certified.  This levy shall not be considered 
in computing the aid reduction under section 124.155.  If an 
applicable school district levies under this paragraph, they may 
not levy under paragraph (4). 
    (6) In addition to the levy authorized under paragraph 5, 
special school district No. 1, Minneapolis, may also levy in 
payable 1994 or later an amount equal to the state aid 
contribution under section 354A.12, subdivision 3b.  
Notwithstanding section 121.904, the entire amount of this levy 
may be recognized as revenue for the fiscal year in which the 
levy is certified.  This levy shall not be considered in 
computing the aid reduction under section 124.155. 
    Sec. 7.  Minnesota Statutes 1992, section 125.05, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
(a) The board of teaching shall issue licenses under its 
jurisdiction to persons the board finds to be qualified and 
competent for their respective positions. 
    (b) The board shall require a person to successfully 
complete an examination of skills in reading, writing, and 
mathematics before being admitted to a post-secondary teacher 
preparation program approved by the board if that person seeks 
to qualify for an initial teaching license to provide direct 
instruction to pupils in kindergarten prekindergarten, 
elementary, secondary, or special education programs.  The board 
shall require colleges and universities offering a board 
approved teacher preparation program to provide remedial 
assistance to persons enrolled in their institution who did not 
achieve a qualifying score on the skills examination, including 
those for whom English is a second language.  The colleges and 
universities must provide assistance in the specific academic 
areas of deficiency in which the person did not achieve a 
qualifying score.  School districts must provide similar, 
appropriate, and timely remedial assistance to those persons 
employed by the district who completed their teacher education 
program outside the state of Minnesota, received a one-year 
license to teach in Minnesota and did not achieve a qualifying 
score on the skills examination, including those persons for 
whom English is a second language. 
    (c) Before admission to a pilot internship program, the 
board shall require a person to successfully complete an 
examination of general pedagogical knowledge.  Before granting a 
first continuing license to participants in the pilot projects, 
the board shall require a person to successfully complete a 
supervised and assessed internship in a professional development 
school and an examination of licensure-specific teaching 
skills.  The board shall determine effective dates for the 
examination of general pedagogical knowledge, the internship, 
and examinations of licensure-specific skills. 
    Sec. 8.  Minnesota Statutes 1992, section 125.185, 
subdivision 4, is amended to read: 
    Subd. 4.  [LICENSE AND RULES.] (a) The board shall adopt 
rules to license public school teachers and interns subject to 
chapter 14. 
    (b) The board shall adopt rules requiring successful 
completion of an examination of skills in reading, writing, and 
mathematics before being admitted to a teacher preparation 
program.  Such rules shall require college and universities 
offering a board approved teacher preparation program to provide 
remedial assistance to persons who did not achieve a qualifying 
score on the skills examination, including those for whom 
English is a second language. 
    (c) The board shall adopt rules to approve teacher 
preparation programs. 
    (d) The board shall provide the leadership and shall adopt 
rules for the redesign of teacher education programs to 
implement a research based, results-oriented curriculum that 
focuses on the skills teachers need in order to be effective.  
The board shall implement new systems of teacher preparation 
program evaluation to assure program effectiveness based on 
proficiency of graduates in demonstrating attainment of program 
outcomes. 
    (e) The board shall adopt rules requiring successful 
completion of an examination of general pedagogical knowledge 
and examinations of licensure-specific teaching skills.  The 
rules shall be effective on the dates determined by the board, 
but not later than July 1, 1999. 
     (f) Until July 1, 1998, the board may select schools to be 
pilot professional development schools according to initial 
criteria adopted by the board.  Initial criteria are not subject 
to chapter 14.  Upon specific legislative authorization to 
implement a statewide restructured licensure program, the board 
shall adopt rules to approve or disapprove professional 
development schools. 
     (g) The board shall adopt rules requiring teacher educators 
to work directly with elementary or secondary school teachers in 
elementary or secondary schools to obtain periodic exposure to 
the elementary or secondary teaching environment. 
      (h) The board shall grant licenses to interns and to 
candidates for initial licenses. 
      (i) The board shall design and implement an assessment 
system which requires a candidate for an initial license and 
first continuing license to demonstrate the abilities necessary 
to perform selected, representative teaching tasks at 
appropriate levels. 
     (j) The board shall receive recommendations from local 
committees as established by the board for the renewal of 
teaching licenses. 
     (k) The board shall grant life licenses to those who 
qualify according to requirements established by the board, and 
suspend or revoke licenses pursuant to sections 125.09 and 
214.10.  The board shall not establish any expiration date for 
application for life licenses. 
     (l) With regard to post-secondary vocational education 
teachers the board of teaching shall adopt and maintain as its 
rules the rules of the state board of technical colleges. 
    Sec. 9.  [125.623] [TEACHERS OF COLOR PROGRAM.] 
    Subdivision 1.  [DEFINITION.] For purposes of this section, 
"people of color" means permanent United States residents who 
are African-American, American Indian or Alaskan native, Asian 
or Pacific Islander, or Hispanic. 
    Subd. 2.  [GRANTS.] The commissioner of education in 
consultation with the multicultural advisory committee 
established in section 126.81 shall award grants for 
professional development programs to recruit and educate people 
of color in the field of education, including early childhood 
and parent education.  Grant applicants must be a school 
district with a growing minority population working in 
collaboration with a state institution of higher education with 
an approved teacher licensure program or an approved early 
childhood or parent education licensure program. 
    Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
shall recruit persons of color to be teachers in elementary, 
secondary, early childhood or parent education, and provide 
support in linking program participants with jobs in the 
recipient's school district. 
    (b) A grant recipient shall establish an advisory council 
composed of representatives of communities of color. 
    (c) A grant recipient, with the assistance of the advisory 
council, shall recruit high school students and other persons, 
support them through the higher education application and 
admission process, advise them while enrolled and link them with 
support resources in the college or university and the community.
    (d) A grant recipient shall award stipends to students of 
color enrolled in an approved licensure program to help cover 
the costs of tuition, student fees, supplies, and books.  
Stipend awards must be based on a student's financial need and 
students must apply for any additional financial aid they are 
eligible for to supplement this program.  No more than ten 
percent of the grant may be used for costs of administering the 
program.  Students must agree to teach in the grantee school 
district for at least two years after licensure.  If the 
district has no licensed positions open, the student may teach 
in another district in Minnesota. 
    (e) The commissioner of education shall consider the 
following criteria in awarding grants: 
    (1) whether the program is likely to increase the 
recruitment and retention of students of color in teaching; 
    (2) whether grant recipients will recruit paraprofessionals 
from the district to work in its schools; and 
    (3) whether grant recipients will establish or have a 
mentoring program for students of color. 
    Sec. 10.  [126.82] [STATE MULTICULTURAL EDUCATION ADVISORY 
COMMITTEE.] 
    (a) The commissioner shall appoint a state multicultural 
education advisory committee to advise the department and the 
state board on multicultural education.  The committee must have 
12 members and be composed of representatives from among the 
following groups and community organizations:  African-American, 
Asian-Pacific, Hispanic, and American Indian. 
    (b) The state committee shall provide information and 
recommendations on: 
    (1) department procedures for reviewing and approving 
district plans and disseminating information on multicultural 
education; 
    (2) department procedures for improving inclusive education 
plans, curriculum and instruction improvement plans, and 
performance-based assessments; 
    (3) developing learner outcomes which are multicultural; 
and 
    (4) other recommendations that will further inclusive, 
multicultural education. 
    (c) The committee shall also participate in determining the 
criteria for and awarding the grants established under section 
16, subdivision 10. 
    Sec. 11.  Minnesota Statutes 1992, section 275.48, is 
amended to read: 
    275.48 [ADDITIONAL TAX LEVIES IN CERTAIN MUNICIPALITIES.] 
    When by virtue of chapter 278, sections 270.07, 375.192, or 
otherwise, the net tax capacity of a city, township or school 
district for a taxable year is reduced after the taxes for the 
year have been spread by the county auditor, and when the local 
tax rate determined by the county auditor based on the original 
net tax capacity is applied on the reduced net tax capacity and 
does not produce the full amount of taxes actually levied and 
certified for that taxable year on the original net tax 
capacity, the city, township or school district may include an 
additional amount in its tax levy made following final 
determination and notice of the reduction in net tax capacity.  
The amount shall equal the difference between the total amount 
of taxes actually levied and certified for that taxable year 
upon the original net tax capacity, not exceeding the maximum 
amount which could be raised on the net tax capacity as reduced, 
within existing local tax rate limitations, if any, and the 
amount of taxes collected for that taxable year on the reduced 
net tax capacity.  The total tax levy authorized for a school 
district by this section may also include an amount equal to any 
interest paid on the abatement refunds.  The levy for a school 
district shall be reduced by the total amount of any abatement 
adjustments received by the district pursuant to section 
124.214, subdivision 2, in the same calendar year in which the 
levy is certified.  As part of the certification required by 
section 124.918, subdivision 1, the commissioner of education 
shall certify the amount of the abatement levy limitation 
adjustment for each school district headquartered in that county.
    Except for school districts, the amount of taxes so 
included shall be levied separately and shall be levied in 
addition to all limitations imposed by law; and further shall 
not result in any penalty in the nature of a reduction in state 
aid of any kind. 
    Sec. 12.  Minnesota Statutes 1992, section 475.61, 
subdivision 3, is amended to read: 
    Subd. 3.  [IRREVOCABILITY.] Tax levies so made and filed 
shall be irrevocable, except as provided in this subdivision. 
    In each year when there is on hand any excess amount in the 
debt redemption fund of a school district at the time the 
district makes its property tax levies, the amount of the excess 
shall be certified by the school board to the county auditor 
commissioner.  The commissioner shall report the amount of the 
excess to the county auditor and the auditor shall reduce the 
tax levy otherwise to be included in the rolls next prepared by 
the amount certified.  The commissioner shall prescribe the form 
and calculation to be used in computing the excess amount.  The 
school board may, with the approval of the commissioner, retain 
the excess amount if it is necessary to ensure the prompt and 
full payment of the obligations and any call premium on the 
obligations, or will be used for redemption of the obligations 
in accordance with their terms.  The school board may, with the 
approval of the commissioner, specify a tax levy in a higher 
amount if necessary because of anticipated tax delinquency or 
for cash flow needs to meet the required payments from the debt 
redemption fund.  
    If the governing body, including the governing body of a 
school district, in any year makes an irrevocable appropriation 
to the debt service fund of money actually on hand or if there 
is on hand any excess amount in the debt service fund, the 
recording officer may certify to the county auditor the fact and 
amount thereof and the auditor shall reduce by the amount so 
certified the amount otherwise to be included in the rolls next 
thereafter prepared. 
    Sec. 13.  [COMMISSIONER APPROVAL; INTEREST ON PAYMENTS.] 
    For taxes payable in 1994, the commissioner of education 
must grant approval of all levies for interest payments on 
abatement refunds.  If the total amount of levy would exceed 
$1,000,000, the commissioner shall proportionately reduce each 
district's interest on abatements levy. 
    Sec. 14.  [PLAN FOR STATE SKILLS EXAM.] 
    Subdivision 1.  [PLAN CONTENT.] The board of teaching shall 
develop a plan to assure that questions contained in the skills 
examination in reading, writing, and mathematics, which persons 
must successfully complete before being admitted to an approved 
teacher preparation program under Minnesota Statutes, section 
125.05, subdivision 1a, clause (b) are culturally sensitive.  
The board shall include in the plan how it proposes to assure 
that the examination questions are culturally sensitive, 
evaluate interpersonal skills, and more comprehensively assess 
general knowledge and skills.  The board shall seek the 
assistance of organizations representing diverse cultures in 
developing the plan.  The board shall submit its plan to the 
education committees of the legislature by February 15, 1994. 
    Subd. 2.  [PROVISIONAL LICENSES.] Persons who have 
successfully completed an approved teacher preparation program 
and obtained a provisional license to teach, but have not 
completed the skills examination required under Minnesota 
Statutes, section 125.05, subdivision 1a, clause (b), may 
continue to teach under a provisional license until the plan 
required under subdivision 1 is implemented. 
    Sec. 15.  Laws 1991, chapter 256, article 8, section 14, as 
amended by Laws 1992, chapter 499, article 7, section 14, is 
amended to read: 
    Sec. 14.  [NONOPERATING FUND TRANSFERS.] 
    By June 30, 1992, and by June 30, 1993, a school district 
may permanently transfer money from the capital expenditure 
facilities or equipment accounts and from the debt redemption 
fund, to the extent the transferred money is not needed for 
principal and interest payments on bonds outstanding at the time 
of transfer, to the transportation fund, capital expenditure 
fund, or the debt redemption fund.  A transfer may not be made 
from the capital expenditure facilities or equipment accounts 
that results in a deficit account balance in either account or a 
deficit in the combined account balance for facilities and 
equipment as of June 30, 1992, or as of June 30, 1993.  No 
levies and no state aids shall be reduced as a result of a 
transfer.  Each district transferring money from the capital 
expenditure facilities or equipment accounts shall report to the 
commissioner of education on each transfer.  A district may not 
transfer money from the debt redemption fund to the capital 
expenditure fund or to the transportation fund without prior 
approval from the commissioner of education.  The commissioner 
shall approve a transfer from the debt redemption fund only if:  
(1) the district retired its bonded indebtedness during fiscal 
year 1992 or 1993 or an earlier fiscal year and the district's 
general education levy was not reduced under Minnesota Statutes, 
section 475.61, subdivision 4, for taxes payable in 1993, or an 
earlier year, or (2) the district's 1991 payable 1992 or 1992 
payable 1993 debt service levy was reduced to zero according to 
Minnesota Statutes, section 475.61, subdivision 3.  The 
commissioner of education shall report to the chairs of the 
education funding divisions of the house of representatives and 
the senate the aggregate transfers, by fund, made by school 
districts. 
    Sec. 16.  [FUND TRANSFERS.] 
    Subdivision 1.  [SPRINGFIELD.] Notwithstanding Minnesota 
Statutes, sections 121.912 and 121.9121 or other law, 
independent school district No. 85, Springfield, may permanently 
transfer a total of up to $600,000, as necessary, from its 
general fund to its capital expenditure fund before July 1, 1995.
    Subd. 2.  [REMER-LONGVILLE.] Notwithstanding Minnesota 
Statutes, section 121.912, subdivision 1, or any other law to 
the contrary, independent school district No. 118, 
Remer-Longville, may permanently transfer $125,000 in fiscal 
year 1993 from the bus purchase account to the capital 
expenditure fund without making a levy reduction. 
    Subd. 3.  [HOLDINGFORD.] Notwithstanding Minnesota 
Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
or any other law, on June 30, 1993, independent school district 
No. 738, Holdingford, may permanently transfer up to $51,000 
from its debt redemption fund to its general fund. 
    Subd. 4.  [MANKATO.] Notwithstanding Minnesota Statutes, 
section 124.2713, subdivision 8, or any other law to the 
contrary, independent school district No. 77, Mankato, may 
expend up to $250,000 from the community service fund for the 
purpose of removing architectural barriers from the Lincoln 
community center to provide access to persons with disabilities. 
    Subd. 5.  [ST. MICHAEL-ALBERTVILLE.] Notwithstanding 
Minnesota Statutes, section 121.912, subdivision 1, or any other 
law to the contrary, independent school district No. 885, St. 
Michael-Albertville, may permanently transfer up to $105,000 in 
fiscal year 1993 from its debt redemption fund to the capital 
expenditure equipment fund. 
    Subd. 6.  [SARTELL.] Notwithstanding Minnesota Statutes, 
sections 121.912, 121.9121, and 475.61, subdivision 4, or any 
other law, on June 30, 1993, independent school district No. 
748, Sartell, may permanently transfer any amount not currently 
needed from its debt redemption fund to the building 
construction fund. 
    Subd. 7.  [GLENCOE.] Notwithstanding Minnesota Statutes, 
sections 121.912 and 121.9121 or other law, independent school 
district No. 422, Glencoe, may permanently transfer a total of 
up to $100,000, as necessary, from its early childhood family 
education fund to its capital expenditure facilities fund before 
July 1, 1994. 
    Subd. 8.  [COLD SPRING.] Notwithstanding Minnesota 
Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
or any other law, on June 30, 1993 independent school district 
No. 750, Cold Spring, may permanently transfer an amount not to 
exceed $66,000 from its debt redemption fund to the 
transportation fund. 
    Subd. 9.  [GRYGLA.] Notwithstanding Minnesota Statutes 
1992, section 121.912, subdivision 1, or any other law to the 
contrary, on June 30, 1993, independent school district No. 447, 
Grygla, may permanently transfer an amount not to exceed 
$100,000 from its debt redemption fund to the capital 
expenditure fund. 
    Sec. 17.  [EARLY RETIREMENT INCENTIVE.] 
    Subdivision 1.  [BOARD MUST OFFER.] A school board, a joint 
vocational technical district under Minnesota Statutes, section 
136C.60, or an intermediate school district under Minnesota 
Statutes, chapter 136D, must offer the early retirement 
incentive provided in this section to a teacher, as defined in 
Minnesota Statutes, section 354.05, subdivision 2, or 354A.011, 
subdivision 27, who is eligible under subdivision 2. 
    Subd. 2.  [ELIGIBILITY.] A teacher is eligible to receive 
the incentive if the person: 
    (1) has at least 25 years of combined service credit in any 
Minnesota public pension plans governed by Minnesota Statutes, 
section 356.30, subdivision 3, or is at least 65 years old and 
has at least one year of combined service credit in these 
pension plans; 
    (2) upon retirement is immediately eligible for a 
retirement annuity from a defined benefit plan; 
    (3) is at least 55 years of age; and 
    (4) retires on or after May 17, 1993, and before August 1, 
1993. 
    Subd. 3.  [INCENTIVE.] For a person who selects the 
incentive under this section, the multiplier percentage used to 
calculate the retirement annuity must be increased by .10 for 
each year of allowable service credit up to 30 years. 
    Subd. 4.  [CONDITIONS.] For purposes of this section, a 
person retires when the person terminates active employment and 
applies for retirement benefits.  An employee who retires under 
this section using the rule of 90 must not be included in the 
calculations required by Minnesota Statutes, section 356.85. 
    Sec. 18.  [EMPLOYER-PAID HEALTH INSURANCE.] 
    Subdivision 1.  [PUBLIC EMPLOYEES.] A school district, 
intermediate school district, or joint vocational technical 
district formed under Minnesota Statutes, sections 136C.60 to 
136C.69, shall provide employer-paid hospital, medical, and 
dental benefits to a person who: 
    (1) is eligible for employer-paid insurance under 
collective bargaining agreements or personnel plans in effect on 
the day before the effective date of this section; 
    (2) has at least 25 years of combined service credit in any 
Minnesota public pension plans other than volunteer firefighter 
plans; 
    (3) has at least as many months of service with the current 
employer as the number of months younger than age 65 the person 
is at the time of retirement; 
    (4) upon retirement is immediately eligible for a 
retirement annuity if the person is a member of a defined 
benefit plan; 
    (5) is at least 55 and not yet 65 years of age; and 
    (6) in the case of a school district employee, retires on 
or after May 15, 1993, and before July 21, 1993; and in the case 
of an employee of another employer in this subdivision, retires 
on or after July 1, 1993, and before October 1, 1993.  
    Subd. 2.  [CONDITIONS; COVERAGE.] For purposes of this 
section, a person retires when the person terminates active 
employment and applies for retirement benefits.  The retired 
employee is eligible for single and dependent coverages and 
employer payments to which the person was entitled immediately 
before retirement, subject to any changes in coverage and 
employer and employee payments through collective bargaining or 
personnel plans, for employees in positions equivalent to the 
position from which the employee retired.  The retired employee 
is not eligible for employer-paid life insurance.  Eligibility 
ceases when the retired employee attains the age of 65, or when 
the employee chooses not to receive the retirement benefits for 
which the employee has applied, or when the employee is eligible 
for employer-paid health insurance from a new employer.  
Coverages must be coordinated with relevant health insurance 
benefits provided through the federally sponsored Medicare 
program.  
    Subd. 3.  [RULE OF 90.] An employee who retires under this 
section using the rule of 90 must not be included in the 
calculations required by Minnesota Statutes, section 356.85. 
    Subd. 4.  [APPLICATION OF OTHER LAWS.] Unilateral 
implementation of this section by a public employer is not an 
unfair labor practice for purposes of Minnesota Statutes, 
chapter 179A.  The authority provided in this section for an 
employer to pay health insurance costs for certain retired 
employees is not subject to the limits in Minnesota Statutes, 
section 179A.20, subdivision 2a.  
    Subd. 5.  [SCHOOL DISTRICT LEVY.] A school district may 
levy the amount necessary to make employer contributions for 
insurance for retired employees under this section.  
Notwithstanding Minnesota Statutes, section 121.904, 50 percent 
of the amount levied must be recognized as revenue for the 
fiscal year in which the levy is certified.  This levy must not 
be considered in computing the aid reduction under Minnesota 
Statutes, section 124.155.  If a school district levies 
according to this section, it may not also levy according to 
Minnesota Statutes, section 122.531, subdivision 9, for eligible 
employees. 
    Sec. 19.  Laws 1991, chapter 265, article 1, section 30, is 
amended to read:  
    Sec. 30.  [BADGER SCHOOL DISTRICT FUND BALANCE.] 
    If independent school district No. 676, Badger, receives 
payment of delinquent property taxes from one taxpayer and the 
payment is more than five percent of the total property taxes 
paid in the fiscal year in which the payment is received, 
general education revenue for the district shall not be reduced 
according to Minnesota Statutes, section 124A.26, subdivision 1, 
for an excess fund balance attributed to the payment for the 
following two five fiscal years. 
    Sec. 20.  [BOARD OF TEACHING APPROPRIATION.] 
    Subdivision 1.  [BOARD OF TEACHING.] The sums indicated in 
this section are appropriated from the general fund to the board 
of teaching in the fiscal year indicated. 
    Subd. 2.  [FELLOWSHIP GRANTS.] (a) For fellowship grants to 
highly qualified minorities seeking alternative preparation for 
licensure: 
     $100,000     .....     1994
     $100,000     .....     1995 
    (b) A grant must not exceed $5,000 with one-half paid each 
year for two years.  Grants must be awarded on a competitive 
basis by the board.  Grant recipients must agree to remain as 
teachers in the district for two years if they satisfactorily 
complete the alternative preparation program and if their 
contracts as probationary teachers are renewed. 
    Subd. 3.  [TEACHER EDUCATION IMPROVEMENT.] For board of 
teaching responsibilities relating to implementation of the 
teaching residency program: 
     $300,000     .....     1994
     $300,000     .....     1995 
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 4.  [TEACHER MENTORING PROGRAMS.] For teacher 
mentoring programs according to Minnesota Statutes, section 
125.131: 
     $340,000     .....     1994
     $340,000     .....     1995 
    Any balance in the first year does not cancel but is 
available in the second year. 
    Sec. 21.  [MINNESOTA CENTER FOR ARTS EDUCATION 
APPROPRIATION.] 
    Subdivision 1.  [ARTS CENTER.] The sums indicated in this 
section are appropriated from the general fund to the Minnesota 
center for arts education in the fiscal year designated: 
      $387,000     .....     1994
      $421,000     .....     1995
    Of the fiscal year 1994 appropriation, $225,000 is to fund 
artist and arts organization participation in the education 
residency project, $75,000 is for school support for the 
residency project, and $87,000 is for further development of the 
partners:  arts and school for students (PASS) program, 
including pilots.  Of the fiscal year 1995 appropriation, 
$215,000 is to fund artist and arts organizations participation 
in the education residency project, $75,000 is for school 
support for the residency project, and $121,000 is to fund the 
PASS program, including additional pilots.  The guidelines for 
the education residency project and the pass program shall be 
developed and defined by the Minnesota arts board.  The 
Minnesota arts board shall participate in the review and 
allocation process.  The center for arts education shall 
cooperate with the Minnesota arts board to fund these projects. 
    Sec. 22.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums in this 
section are appropriated, unless otherwise indicated, from the 
general fund to the department of education for the fiscal years 
designated. 
    Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
Minnesota Statutes, section 124.214:  
     $7,334,000    .....     1994 
     $7,567,000    .....     1995 
    The 1994 appropriation includes $902,000 for 1993 and 
$6,432,000 for 1994.  
    The 1995 appropriation includes $1,135,000 for 1994 and 
$6,432,000 for 1995.  
    Subd. 3.  [INTEGRATION GRANTS.] (a) For grants to districts 
implementing desegregation plans mandated by the state board: 
     $18,844,000    .....    1994 
     $18,844,000    .....    1995 
    (b) $1,385,000 each year must be allocated to independent 
school district No. 709, Duluth; $9,368,300 each year must be 
allocated to special school district No. 1, Minneapolis; and 
$8,090,500 each year must be allocated to independent school 
district No. 625, St. Paul.  As a condition of receiving a 
grant, each district must deposit any increase in state aid over 
the fiscal year 1993 amount in a separate account.  Each 
district must continue to report its costs according to the 
uniform financial accounting and reporting system.  Each 
district must use the increase in aid to provide educational 
programs including assurance of mastery under Minnesota 
Statutes, section 124.311, English as a second language, 
individualized learning and development under Minnesota 
Statutes, sections 124.331 to 124.333, and reading recovery.  
Each district must submit a report to the chairs of the 
education committees of the legislature about the actual 
expenditures it made to integrate schools using the grant 
money.  The report must indicate changes in student performance 
as a result of the expenditure of these grants.  These grants 
may be used to transport students attending a nonresident 
district under Minnesota Statutes, section 120.062, to the 
border of the resident district.  A district may allocate a part 
of the grant to the transportation fund for this purpose.  
    Subd. 4.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
education aid according to Minnesota Statutes, sections 123.931 
to 123.947: 
     $9,623,000     .....     1994 
     $9,696,000     .....     1995 
    The 1994 appropriation includes $1,333,000 for 1993 and 
$8,290,000 for 1994.  
    The 1995 appropriation includes $1,463,000 for 1994 and 
$8,233,000 for 1995.  
    Subd. 5.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
school lunch aid according to Minnesota Statutes, section 
124.646, and Code of Federal Regulations, title 7, section 
210.17, and for food storage and transportation costs for United 
States Department of Agriculture donated commodities; and for a 
temporary transfer to the commodity processing revolving fund to 
provide cash flow to permit schools and other recipients of 
donated commodities to take advantage of volume processing rates 
and for school milk aid according to Minnesota Statutes, section 
124.648:  
     $6,525,000     .....     1994 
     $6,525,000     .....     1995 
    (b) Any unexpended balance remaining from the 
appropriations in this subdivision shall be prorated among 
participating schools based on the number of free, reduced, and 
fully paid federally reimbursable student lunches served during 
that school year.  
    (c) If the appropriation amount attributable to either year 
is insufficient, the rate of payment for each 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.  
    (d) Any temporary transfer processed in accordance with 
this subdivision to the commodity processing fund will be 
returned by June 30 in each year so that school lunch aid and 
food storage costs can be fully paid as scheduled.  
    (e) Not more than $800,000 of the amount appropriated each 
year may be used for school milk aid. 
    Subd. 6.  [SCHOOL BREAKFAST.] To operate the school 
breakfast program: 
     $200,000     .....     1994
     $200,000     .....     1995
    If the appropriation amount attributable to either year is 
insufficient, the rate of payment for each student breakfast 
shall be reduced and the aid for that year shall be prorated 
among participating schools so as not to exceed the total 
authorized appropriation for that year.  Any unexpected balance 
remaining shall be used to subsidize the payments made for 
school lunch aid per Minnesota Statutes, section 124.646.  
    Subd. 7.  [MINORITY TEACHER INCENTIVES.] For minority 
teacher incentives according to Minnesota Statutes, section 
124.278: 
     $600,000    .....     1994 
    Any unexpended balance remaining in 1994 does not cancel 
but is available in 1995.  
    Subd. 8.  [CROSS-CULTURAL INITIATIVES.] For cross-cultural 
initiatives: 
     $135,000     .....     1994.
    (a) $10,000 is for the State Multicultural Education 
Advisory Council. 
    (b) $125,000 is for four groups of grants, each group in 
the total amount of $31,250.  The grants shall be awarded by the 
department of education to community groups representing persons 
of the following racial-ethnic heritages: 
    (1) African-American; 
    (2) American Indian; 
    (3) Asian-Pacific; and 
    (4) Hispanic. 
    At least one grant shall be awarded on behalf of persons in 
each racial-ethnic group in clauses (1) to (4). 
    The grants shall be used to enhance cross-cultural 
understanding among K-12 students and staff.  The community 
groups that receive grants shall work with school districts to 
present or develop programs for students or staff. 
    The department shall develop criteria in consultation with 
the State Multicultural Education Advisory Council for awarding 
grants to community groups to develop cross-cultural 
understanding.  Community groups must meet the criteria 
developed by the department and the committee in order to 
receive a grant. 
    (c) Any balance from the 1994 appropriation does not cancel 
but is available for fiscal year 1995. 
    Subd. 9.  [APPROPRIATIONS FOR SCHOOL DISTRICTS.] For grants 
to certain school districts: 
     $ 50,000     .....     1994 
     $ 50,000     .....     1995 
    $20,000 in 1994 and $20,000 in 1995 are for grants to 
independent school district No. 707, Nett Lake, to pay insurance 
premiums under Minnesota Statutes, section 466.06. 
    $30,000 in 1994 and $30,000 in 1995 are for grants to 
independent school district No. 707, Nett Lake, for the payment 
of obligations of the school district for unemployment 
compensation.  The appropriation must be paid to the appropriate 
state agency for such purposes in the name of the school 
district. 
    Subd. 10.  [SUMMER FOOD SERVICE INCENTIVES.] For an 
increase of up to 30 in the number of department approved summer 
food service programs: 
     $30,000     .....     1994
    The appropriation is available until June 30, 1995. 
    Each new program sponsor is eligible for a $1,000 grant. 
    Subd. 11.  [CAREER TEACHER AID.] For career teacher aid 
according to Minnesota Statutes, section 124.276: 
      $250,000      .....     1994 
    Any unexpended balance remaining in the first year does not 
cancel but is available in the second year. 
    Notwithstanding Minnesota Statutes 1989 Supplement, section 
124.276, subdivision 2, the aid may be used for the increased 
district contribution to the teachers' retirement association 
and to FICA resulting from the portion of the teaching contract 
that is in addition to the standard teaching contract of the 
district. 
    Subd. 12.  [TEACHERS OF COLOR PROGRAM.] For grants to 
school districts for the teachers of color program: 
      $300,000    .....    1994
      $300,000    .....    1995
    Of this appropriation, at least $75,000 each fiscal year 
shall be for educating people of color to be early childhood and 
parent educators. 
    Subd. 13.  [EDUCATION IN AGRICULTURE LEADERSHIP 
COUNCIL.] For operating expenses of the Minnesota education in 
agriculture leadership council. 
      $50,000      .....      1994  
    Any balance in the first year does not cancel but is 
available in the second year. 
    Sec. 23.  [EFFECTIVE DATE.] 
    Section 11 is effective July 1, 1993, and applies for the 
first time to levies for 1993 taxes payable in 1994. 
    Sections 16 and 19 are effective the day following final 
enactment. 
    Section 14 is effective the day after final enactment. 
    Section 17 is effective the day following final enactment. 

                               ARTICLE 9 

                             MISCELLANEOUS 
    Section 1.  Minnesota Statutes 1992, section 120.0621, is 
amended to read: 
    120.0621 [ENROLLMENT OPTIONS PROGRAMS IN BORDER STATES.] 
    Subdivision 1.  [OPTIONS FOR ENROLLMENT IN ADJOINING 
STATES.] Minnesota pupils and pupils residing in adjoining 
states may enroll in school districts in the other state 
according to: 
    (1) section 120.08, subdivision 2; or 
    (2) this section. 
    Subd. 2.  [PUPILS IN MINNESOTA.] A Minnesota resident pupil 
may enroll in a school district in an adjoining state if the 
district is located in a county that to be attended borders 
Minnesota. 
    Subd. 3.  [PUPILS IN BORDERING STATES.] A non-Minnesota 
pupil who resides in an adjoining state in a county school 
district that borders Minnesota may enroll in a Minnesota school 
district if either the school board of the district in which the 
pupil resides or state in which the pupil resides pays tuition 
to the school district in which the pupil is enrolled.  The 
tuition must be an amount that is at least comparable to the 
tuition specified in section 120.08, subdivision 1. 
    Subd. 4.  [PROCEDURAL REQUIREMENTS.] Except as otherwise 
provided in this section, the rights and duties set forth in 
section 120.062 apply to Minnesota pupils, parents, and school 
districts if a pupil enrolls in a nonresident district according 
to this section. 
    Subd. 5.  [AID ADJUSTMENTS.] The state of Minnesota shall 
make adjustments to general education aid, capital expenditure 
facilities aid, and capital expenditure equipment aid according 
to sections 124A.036, subdivision 5, and 124.245, subdivision 6, 
respectively, for the resident district of a Minnesota pupil 
enrolled in another state according to this section.  The state 
of Minnesota shall reimburse the nonresident district, according 
to section 120.08, subdivision 1, in which a Minnesota pupil is 
enrolled according to this section. 
    Subd. 5a.  [TUITION PAYMENTS.] In each odd-numbered year, 
before March 1, the state board of education shall agree to 
rates of tuition for Minnesota elementary and secondary pupils 
attending in other states for the next two fiscal years.  The 
board shall negotiate equal, reciprocal rates with the 
designated authority in each state for pupils who reside in an 
adjoining state and enroll in a Minnesota school district.  The 
rates must be at least equal to the tuition specified in section 
120.08, subdivision 1.  The tuition rate for a pupil with a 
disability must be equal to the actual cost of instruction and 
services provided.  The resident district of a Minnesota pupil 
attending in another state under this section must pay the 
amount of tuition agreed upon in this section to the district of 
attendance, prorated on the basis of the proportion of the 
school year attended. 
    Subd. 5b.  [TRANSPORTATION OF STUDENTS.] (a) The agreement 
under subdivision 5a with each state must specify that the 
attending district in each state transport a pupil from the 
district boundary to the school of attendance.  
     (b) Notwithstanding paragraph (a), the districts of 
residence and attendance may agree that either district may 
provide transportation from a pupil's home or agreed upon 
location to school.  Transportation aid for Minnesota students 
eligible for aid shall be paid only for transportation within 
the resident district. 
    Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
effective with respect to South Dakota upon enactment of 
provisions by South Dakota that are essentially similar to the 
rights and duties of provisions for Minnesota pupils residing in 
districts located in all South Dakota counties that border 
Minnesota in this section.  After July 1, 1993, this section is 
effective with respect to any other bordering state upon 
enactment of provisions by the bordering state that are 
essentially similar to the rights and duties of pupils residing 
in and districts located in all counties that border provisions 
for Minnesota pupils in this section. 
    Sec. 2.  Minnesota Statutes 1992, section 120.064, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSES.] (a) The purpose of this section 
is to: 
    (1) improve pupil learning; 
    (2) increase learning opportunities for pupils; 
    (3) encourage the use of different and innovative teaching 
methods; 
    (4) require the measurement of learning outcomes and create 
different and innovative forms of measuring outcomes; 
    (5) establish new forms of accountability for schools; or 
    (6) create new professional opportunities for teachers, 
including the opportunity to be responsible for the learning 
program at the school site. 
    (b) This section does not provide a means to keep open a 
school that otherwise would be closed.  Applicants in these 
circumstances bear the burden of proving that conversion to an 
outcome-based school fulfills a purpose specified in this 
subdivision, independent of the school's closing. 
    Sec. 3.  Minnesota Statutes 1992, section 120.064, 
subdivision 3, is amended to read: 
    Subd. 3.  [SPONSOR.] (a) A school board may sponsor an one 
or more outcome-based school schools. 
    (b) A school board may authorize a maximum of two five 
outcome-based schools.  No more than a total of eight 20 
outcome-based schools may be authorized.  The state board of 
education shall advise potential sponsors when the maximum 
number of outcome-based schools has been authorized. 
    Sec. 4.  Minnesota Statutes 1992, section 120.064, 
subdivision 4, is amended to read: 
    Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
authorize one or more licensed teachers under section 125.05, 
subdivision 1, to form and operate an outcome-based school 
subject to approval by the state board of education.  If a 
school board elects not to sponsor an outcome-based school, the 
applicant may appeal the school board's decision to the state 
board of education if two members of the school board voted to 
sponsor the school.  If the state board authorizes the school, 
the state board shall sponsor the school according to this 
section.  The teachers school shall organize be organized and 
operate a school operated as a cooperative under chapter 308A or 
nonprofit corporation under chapter 317A.  
    (b) Before a teacher the operators may begin to form and 
operate a school, the sponsor must file an affidavit with the 
state board of education stating its intent to authorize an 
outcome-based school.  The affidavit must state the terms and 
conditions under which the sponsor would authorize an 
outcome-based school.  The state board must approve or 
disapprove the sponsor's proposed authorization within 30 days 
of receipt of the affidavit.  Failure to obtain state board 
approval precludes a sponsor from authorizing the outcome-based 
school that was the subject of the affidavit.  
    (c) The teachers operators authorized to organize and 
operate a school shall hold an election for members of the 
school's board of directors in a timely manner after the school 
is operating.  All Any staff members who are employed at the 
school, including teachers providing instruction under a 
contract with a cooperative, and all parents of children 
enrolled in the school may participate in the election.  
Licensed teachers employed at the school, including teachers 
providing instruction under a contract with a cooperative, must 
be a majority of the members of the board of directors.  A 
provisional board may operate before the election of the 
school's board of directors.  
    (d) The sponsor's authorization for an outcome-based school 
shall be in the form of a written contract signed by the sponsor 
and the board of directors of the outcome-based school. 
    Sec. 5.  Minnesota Statutes 1992, section 120.064, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
may convert one or more of its existing schools to outcome-based 
schools under this section if 90 percent of the full-time 
teachers at the school sign a petition seeking conversion.  The 
conversion must occur at the beginning of an academic year. 
    Sec. 6.  Minnesota Statutes 1992, section 120.064, 
subdivision 5, is amended to read: 
    Subd. 5.  [CONTRACT.] The sponsor's authorization for an 
outcome-based school shall be in the form of a written contract 
signed by the sponsor and the board of directors of the 
outcome-based school.  The contract for an outcome-based school 
shall be in writing and contain at least the following: 
    (1) a description of a program that carries out one or more 
of the purposes in subdivision 1; 
    (2) specific outcomes pupils are to achieve under 
subdivision 10; 
    (3) admission policies and procedures; 
    (4) management and administration of the school; 
    (5) requirements and procedures for program and financial 
audits; 
    (6) how the school will comply with subdivisions 8, 13, 15, 
and 21; 
    (7) assumption of liability by the outcome-based school; 
    (8) types and amounts of insurance coverage to be obtained 
by the outcome-based school; and 
    (9) the term of the contract which may be up to three years.
    Sec. 7.  Minnesota Statutes 1992, section 120.064, 
subdivision 8, is amended to read: 
    Subd. 8.  [REQUIREMENTS.] (a) An outcome-based school shall 
meet the same all applicable state and local health and safety 
requirements required of a school district. 
    (b) The school must be located in Minnesota the sponsoring 
district, unless another school board agrees to locate an 
outcome-based school sponsored by another district in its 
boundaries.  Its specific location may not be prescribed or 
limited by a sponsor or other authority except a zoning 
authority.  If a school board denies a request to locate within 
its boundaries an outcome-based school sponsored by another 
district, the sponsoring district may appeal to the state board 
of education.  If the state board authorizes the school, the 
state board shall sponsor the school. 
    (c) The school must be nonsectarian in its programs, 
admission policies, employment practices, and all other 
operations.  A sponsor may not authorize an outcome-based school 
or program that is affiliated with a nonpublic sectarian school 
or a religious institution. 
    (d) The primary focus of the school must be to provide a 
comprehensive program of instruction for at least one grade or 
age group from five through 18 years of age.  Instruction may be 
provided to people younger than five years and older than 18 
years of age. 
    (e) The school may not charge tuition. 
    (f) The school is subject to and shall comply with chapter 
363 and section 126.21. 
    (g) The school is subject to and shall comply with the 
pupil fair dismissal act, sections 127.26 to 127.39, and the 
Minnesota public school fee law, sections 120.71 to 120.76. 
    (h) The school is subject to the same financial audits, 
audit procedures, and audit requirements as a school district.  
The audit must be consistent with the requirements of sections 
121.901 to 121.917, except to the extent deviations are 
necessary because of the program at the school.  The department 
of education, state auditor, or legislative auditor may conduct 
financial, program, or compliance audits. 
     (i) The school is a school district for the purposes of 
tort liability under chapter 466. 
    Sec. 8.  Minnesota Statutes 1992, section 120.064, 
subdivision 9, is amended to read: 
    Subd. 9.  [ADMISSION REQUIREMENTS.] The school may limit 
admission to: 
    (1) pupils within an age group or grade level; 
    (2) people who are eligible to participate in the high 
school graduation incentives program under section 126.22; or 
    (3) pupils who have a specific affinity for the school's 
teaching methods, the school's learning philosophy, or a subject 
such as mathematics, science, fine arts, performing arts, or a 
foreign language; or 
    (4) residents of a specific geographic area if where the 
percentage of the population of non-Caucasian people in the 
geographic of that area is greater than the percentage of the 
non-Caucasian population in the congressional district in which 
the geographic area is located, and as long as the school 
reflects the racial and ethnic diversity of that the specific 
area. 
    The school shall enroll an eligible pupil who submits a 
timely application, unless the number of applications exceeds 
the capacity of a program, class, grade level, or building.  In 
this case, pupils shall be accepted by lot. 
    The school may not limit admission to pupils on the basis 
of intellectual ability, measures of achievement or aptitude, or 
athletic ability.  
    Sec. 9.  Minnesota Statutes 1992, section 120.064, 
subdivision 11, is amended to read: 
    Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] 
The school's board of directors school shall employ and or 
contract with necessary teachers, as defined by section 125.03, 
subdivision 1, who hold valid licenses to perform the particular 
service for which they are employed in the school.  The board 
school may employ necessary employees who are not required to 
hold teaching licenses to perform duties other than teaching and 
may contract for other services.  The board school may discharge 
teachers and nonlicensed employees. 
    The board of directors also shall decide matters related to 
the operation of the school, including budgeting, curriculum and 
operating procedures. 
    Sec. 10.  Minnesota Statutes 1992, section 120.064, 
subdivision 16, is amended to read: 
    Subd. 16.  [LEASED SPACE.] The school may lease space from 
a board eligible to be a sponsor or other public or private 
nonprofit nonsectarian organization.  If a school is unable to 
lease appropriate space from an eligible board or other public 
or private nonprofit nonsectarian organization, the school may 
lease space from another nonsectarian organization if the 
department of education, in consultation with the department of 
administration, approves the lease. 
    Sec. 11.  Minnesota Statutes 1992, section 120.064, 
subdivision 18, is amended to read: 
    Subd. 18.  [DISSEMINATE INFORMATION.] The sponsor, the 
operators, and the department of education must disseminate 
information to the public, directly and through sponsors, on how 
to form and operate an outcome-based school and how to utilize 
the offerings of an outcome-based school.  Particular groups to 
be targeted include low-income families and communities, and 
students of color. 
    Sec. 12.  Minnesota Statutes 1992, section 120.064, 
subdivision 21, is amended to read: 
    Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
duration of the contract with a sponsor shall be for the term 
contained in the contract according to subdivision 5.  The 
sponsor, subject to state board of education approval, may or 
may not renew a contract at the end of the term for any ground 
listed in paragraph (b).  A sponsor or the state board may 
unilaterally terminate a contract during the term of the 
contract for any ground listed in paragraph (b).  At least 60 
days before not renewing or terminating a contract, the sponsor, 
or the state board if the state board is acting to terminate a 
contract, shall notify the board of directors of the school of 
the proposed action in writing.  The notice shall state the 
grounds for the proposed action in reasonable detail and that 
the school's board of directors may request in writing an 
informal hearing before the sponsor or the state board within 14 
days of receiving notice of nonrenewal or termination of the 
contract.  Failure by the board of directors to make a written 
request for a hearing within the 14-day period shall be treated 
as acquiescence to the proposed action.  Upon receiving a timely 
written request for a hearing, the sponsor or the state board 
shall give reasonable notice to the school's board of directors 
of the hearing date.  The sponsor or the state board shall 
conduct an informal hearing before taking final action.  The 
sponsor shall take final action to renew or not renew a contract 
by the last day of classes in the school year.  If the sponsor 
is a local school board, the school's board of directors may 
appeal the sponsor's decision to the state board of education.  
    (b) A contract may be terminated or not renewed upon any of 
the following grounds: 
    (1) failure to meet the requirements for pupil performance 
contained in the contract; 
    (2) failure to meet generally accepted standards of fiscal 
management; 
    (3) for violations of law; or 
    (4) other good cause shown. 
    If a contract is terminated or not renewed, the school 
shall be dissolved according to the applicable provisions of 
chapter 308A or 317A. 
    Sec. 13.  Minnesota Statutes 1992, section 120.101, 
subdivision 5, is amended to read: 
    Subd. 5.  [AGES AND TERMS.] For the 1988-1989 school year 
and the school years thereafter, every child between seven and 
16 years of age shall receive instruction for at least 170 the 
number of days each year required under subdivision 5b.  For the 
2000-2001 school year and later school years, every child 
between seven and 18 years of age shall receive instruction for 
at least 170 the number of days each year required under 
subdivision 5b.  Every child under the age of seven who is 
enrolled in a half-day kindergarten, or a full-day kindergarten 
program on alternate days, or other kindergarten programs shall 
receive instruction at least equivalent to 170 half days half of 
each day for the number of days each year set out in subdivision 
5b.  Except as provided in subdivision 5a, a parent may withdraw 
a child under the age of seven from enrollment at any time. 
    Sec. 14.  Minnesota Statutes 1992, section 120.101, 
subdivision 5b, is amended to read: 
    Subd. 5b.  [INSTRUCTIONAL DAYS.] Every child required to 
receive instruction according to subdivision 5 shall receive 
instruction for at least the number of 170 days through the 
1994-1995 school year, and for later years, at least the number 
of days per school year required in the following schedule: 
    (1) 1995-1996, 172; 
    (2) 1996-1997, 174; 
    (3) 1997-1998, 176; 
    (4) 1998-1999, 178; 
    (5) 1999-2000, 180; 
    (6) 2000-2001, 182; 
    (7) 2001-2002, 184; 
    (8) 2002-2003, 186; 
    (9) 2003-2004, 188; and 
    (10) 2004-2005, and later school years, 190. 
    Sec. 15.  Minnesota Statutes 1992, section 120.102, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
charge of providing instruction to a child shall submit the 
following information to the superintendent of the district in 
which the child resides: 
    (1) by October 1 of each school year, the name, age, and 
address of each child receiving instruction; 
    (2) the name of each instructor and evidence of compliance 
with one of the requirements specified in section 120.101, 
subdivision 7; 
    (3) an annual instructional calendar showing that 
instruction will occur on at least 170 the number of days 
required under section 120.101, subdivision 5b; and 
    (4) for each child instructed by a parent who meets only 
the requirement of section 120.101, subdivision 7, clause (6), a 
quarterly report card on the achievement of the child in each 
subject area required in section 120.101, subdivision 6. 
    Sec. 16.  Minnesota Statutes 1992, section 121.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  The department shall be under the 
administrative control of the commissioner of education which 
office is established.  The commissioner shall be the secretary 
of the state board.  The governor shall appoint the commissioner 
shall be appointed by the state board with the approval of the 
governor under the provisions of section 15.06.  For purposes of 
section 15.06, the state board is the appointing authority. 
    The commissioner shall be a person who possesses 
educational attainment and breadth of experience in the 
administration of public education and of the finances 
pertaining thereto commensurate with the spirit and intent of 
this code.  Notwithstanding any other law to the contrary, the 
commissioner may appoint two deputy commissioners who shall 
serve in the unclassified service.  The commissioner shall also 
appoint other employees as may be necessary for the organization 
of the department.  The commissioner shall perform such duties 
as the law and the rules of the state board may provide and be 
held responsible for the efficient administration and discipline 
of the department.  The commissioner shall make recommendations 
to the board and be charged with the execution of powers and 
duties which the state board may prescribe, from time to time, 
to promote public education in the state, to safeguard the 
finances pertaining thereto, and to enable the state board to 
carry out its duties.  
    Sec. 17.  Minnesota Statutes 1992, section 121.16, is 
amended by adding a subdivision to read: 
    Subd. 3.  The commissioner shall review all 
education-related mandates in state law or rule once every four 
years to determine which mandates fail to adequately promote 
public education in the state.  The commissioner shall report 
the findings of the review to the education committees of the 
legislature by February 1 in the year following the completion 
of the review. 
    Sec. 18.  Minnesota Statutes 1992, section 122.23, 
subdivision 18, is amended to read: 
    Subd. 18.  (a) The county auditor shall determine a date, 
not less than 20 nor more than 60 days from the date that the 
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) 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. 
     (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. 
     (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. 
     (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. 
    (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.  The 
obligations of the new board to nonlicensed employees employed 
by component districts is governed by subdivision 18a. 
    Sec. 19.  Minnesota Statutes 1992, section 122.23, is 
amended by adding a subdivision to read: 
    Subd. 18a.  [NONLICENSED EMPLOYEES.] (a) As of the 
effective date of a consolidation of two or more districts or 
parts of them, each nonlicensed employee employed by an affected 
district must be assigned to the newly created district. 
    (b) As of the effective date of a consolidation, any 
employee organization may petition the commissioner of the 
bureau of mediation services for a certification election under 
chapter 179A.  An organization certified as the exclusive 
representative for nonlicensed employees in a particular 
preexisting district continues as the exclusive representative 
for those particular employees for a period of 90 days from the 
effective date of a consolidation.  If a petition for 
representation of nonlicensed employees is filed within 90 days, 
an exclusive representative for those particular nonlicensed 
employees continues as the exclusive representative until the 
bureau of mediation services certification proceedings are 
concluded. 
    (c) The terms and conditions of employment of nonlicensed 
employees assigned to the newly created district are temporarily 
governed by contracts executed by an exclusive representative 
for a period of 90 days from the effective date of the 
consolidation.  If a petition for representation is filed with 
the bureau of mediation services within the 90 days, the 
contractual terms and conditions of employment for those 
nonlicensed employees who were governed by a preexisting 
contract continue in effect until the bureau of mediation 
services proceedings are concluded and, if an exclusive 
representative has been elected, until successor contracts are 
executed between the board of the newly created district and the 
new exclusive representative.  The terms and conditions of 
employment of nonlicensed employees assigned to the newly 
created district who were not governed by a collective 
bargaining agreement at the time of the consolidation are 
governed by the policies of the board of the newly created 
district. 
    (d) The date of first employment in the newly created 
district is the date on which services were first performed by 
the employee in the preexisting district.  Any sick leave, 
vacation time, or severance pay benefits accumulated under 
policies of the preexisting district or contracts between the 
exclusive representatives and the board of the preexisting 
district continue to apply in the newly created district to the 
employees of the preexisting districts, subject to any maximum 
accumulation limitations negotiated in a successor contract.  
Future leaves of absence, vacations, or other benefits to be 
accumulated in the newly created district are governed by board 
policy or by contract between the exclusive representative of an 
appropriate unit of employees and the board of the newly created 
district.  The board of the newly created district shall 
provide, to transferred nonlicensed employees, open enrollment 
in all insurance plans with no limit on preexisting conditions. 
    Sec. 20.  Minnesota Statutes 1992, section 122.895, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICABILITY.] This section applies to: 
    (1) an education district organized according to sections 
122.91 to 122.95; 
    (2) a cooperative vocational center organized according to 
section 123.351; 
    (3) a joint powers district or board organized according to 
section 471.59 which employs teachers to provide instruction; 
    (4) a joint vocational technical district organized 
according to sections 136C.60 to 136C.69; 
    (5) an intermediate district organized according to chapter 
136D; and 
    (6) an educational cooperative service unit which employs 
teachers to provide instruction; and 
    (7) school districts participating in an agreement for the 
cooperative provision of special education services to children 
with disabilities according to section 120.17, subdivision 4. 
    Sec. 21.  Minnesota Statutes 1992, section 122.895, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [AGREEMENTS FOR COOPERATIVE SPECIAL 
EDUCATION.] (a) Upon the termination of an agreement according 
to section 120.17, subdivision 4, a teacher employed to provide 
special education services by a school district participating in 
the agreement will be afforded rights to employment by other 
school districts according to subdivisions 3, 4, and 5.  
Nonlicensed employees of a participating district employed to 
provide special education services will, upon the agreement's 
termination, be afforded rights to employment by other 
participating districts according to subdivision 8. 
    (b) Upon a school district's withdrawal from the 
cooperative provision of special education under an agreement 
according to section 120.17, subdivision 4, a teacher employed 
to provide special education services by a participating 
district will be afforded rights to employment by other school 
districts according to subdivisions 3, 6, and 7.  Nonlicensed 
employees of a participating district employed to provide 
special education services will be afforded rights to employment 
by the withdrawing district according to subdivision 9. 
    Sec. 22.  Minnesota Statutes 1992, section 123.34, 
subdivision 9, is amended to read: 
    Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
classified secondary school shall employ a superintendent who 
shall be an ex officio nonvoting member of the school board.  
The authority for selection and employment of a superintendent 
shall be vested in the school board in all cases.  An individual 
employed by a school board as a superintendent shall have an 
initial employment contract for a period of time no longer than 
three years from the date of employment.  Any subsequent 
employment contract must not exceed a period of three years.  A 
school board, at its discretion, may or may not renew an 
employment contract.  A school board shall not, by action or 
inaction, extend the duration of an existing employment 
contract.  Beginning 365 days prior to the expiration date of an 
existing employment contract, a school board may negotiate and 
enter into a subsequent employment contract to take effect upon 
the expiration of the existing contract.  A subsequent contract 
shall be contingent upon the employee completing the terms of an 
existing contract.  If a contract between a school board and a 
superintendent is terminated prior to the date specified in the 
contract, the school board may not enter into another 
superintendent contract with that same individual that has a 
term that extends beyond the date specified in the terminated 
contract.  A school board may terminate a superintendent during 
the term of an employment contract for any of the grounds 
specified in section 125.12, subdivision 6 or 8.  A 
superintendent shall not rely upon an employment contract with a 
school board to assert any other continuing contract rights in 
the position of superintendent under section 125.12.  
Notwithstanding the provisions of sections 122.532, 122.541, 
125.12, subdivision 6a or 6b, or any other law to the contrary, 
no individual shall have a right to employment as a 
superintendent based on order of employment in any district.  If 
two or more school districts enter into an agreement for the 
purchase or sharing of the services of a superintendent, the 
contracting districts have the absolute right to select one of 
the individuals employed to serve as superintendent in one of 
the contracting districts and no individual has a right to 
employment as the superintendent to provide all or part of the 
services based on order of employment in a contracting district. 
The superintendent of a district shall perform the following:  
    (1) visit and supervise the schools in the district, report 
and make recommendations about their condition when advisable or 
on request by the board; 
    (2) recommend to the board employment and dismissal of 
teachers; 
    (3) superintend school grading practices and examinations 
for promotions; 
    (4) make reports required by the commissioner of education; 
and 
    (5) perform other duties prescribed by the board. 
    Sec. 23.  Minnesota Statutes 1992, section 123.3514, 
subdivision 5, is amended to read: 
    Subd. 5.  [CREDITS.] A pupil may enroll in a course under 
this section for either secondary credit or post-secondary 
credit.  At the time a pupil enrolls in a course, the pupil 
shall designate whether the course is for secondary or 
post-secondary credit.  A pupil taking several courses may 
designate some for secondary credit and some for post-secondary 
credit.  A pupil must not audit a course under this section. 
    A school district shall grant academic credit to a pupil 
enrolled in a course for secondary credit if the pupil 
successfully completes the course.  Nine Seven quarter or six 
four semester college credits equal at least one full year of 
high school credit.  Fewer college credits may be prorated.  A 
school district shall also grant academic credit to a pupil 
enrolled in a course for post-secondary credit if secondary 
credit is requested by a pupil.  If no comparable course is 
offered by the district, the district shall, as soon as 
possible, notify the state board of education, which shall 
determine the number of credits that shall be granted to a pupil 
who successfully completes a course.  If a comparable course 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, 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 secondary 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 and secondary credits granted shall be included in 
the pupil's secondary school record.  A pupil must provide the 
school with a copy of the pupil's grade in each course taken for 
secondary credit under this section.  Upon the request of a 
pupil, the pupil's secondary school record shall also include 
evidence of successful completion and credits granted for a 
course taken for post-secondary credit.  In either case, the 
record shall indicate that the credits were earned at a 
post-secondary institution. 
    If a pupil enrolls in a post-secondary institution after 
leaving secondary school, the post-secondary institution shall 
award post-secondary credit for any course successfully 
completed for secondary credit at that institution.  Other 
post-secondary institutions may award, after a pupil leaves 
secondary school, post-secondary credit for any courses 
successfully completed under this section.  An institution may 
not charge a pupil for the award of credit. 
    Sec. 24.  Minnesota Statutes 1992, section 123.3514, 
subdivision 6, is amended to read: 
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
a course under this section, the department of education shall 
make payments according to this subdivision for courses that 
were taken for secondary credit.  
    The department shall not make payments to a school district 
or post-secondary institution for a course taken for 
post-secondary credit only.  
    A public post-secondary system or private post-secondary 
institution shall receive the following: 
    (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
    (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance, 
multiplied by 1.3, and divided by 30. 
    The department of education shall pay to each public 
post-secondary system and to each private institution 100 
percent of the amount in clause (1) or (2) within 30 days of 
receiving initial enrollment information each quarter or 
semester.  If changes in enrollment occur during a quarter or 
semester, the change shall be reported by the post-secondary 
system or institution at the time the enrollment information for 
the succeeding quarter or semester is submitted.  At any time 
the department of education notifies a post-secondary system or 
institution that an overpayment has been made, the system or 
institution shall promptly remit the amount due. 
    A school district shall receive: 
    (1) for a pupil who is not enrolled in classes at a 
secondary school, 12 percent of the formula allowance, according 
to section 124A.22, subdivision 2, times 1.3; or 
    (2) for a pupil who attends a secondary school part time, 
the formula allowance, according to section 124A.22, subdivision 
2, times 1.3, times the ratio of the total number of hours the 
pupil is in membership for courses taken by the pupil for 
credit, to 1020 hours.  
    Sec. 25.  Minnesota Statutes 1992, section 123.3514, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
For a pupil enrolled in a course according to this section, the 
department of education shall make payments according to this 
subdivision for courses taken to fulfill high school graduation 
requirements by pupils eligible for adult high school graduation 
aid.  
    The department must not make payments to a school district 
or post-secondary institution for a course taken for 
post-secondary credit only. 
    A public post-secondary system or private post-secondary 
institution shall receive the following: 
    (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
    (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance 
multiplied by 1.3, and divided by 30. 
    The department of education shall pay to each public 
post-secondary system and to each private institution 100 
percent of the amount in clause (1) or (2) within 30 days of 
receiving initial enrollment information each quarter or 
semester.  If changes in enrollment occur during a quarter or 
semester, the change shall be reported by the post-secondary 
system or institution at the time the enrollment information for 
the succeeding quarter or semester is submitted.  At any time 
the department of education notifies a post-secondary system or 
institution that an overpayment has been made, the system or 
institution shall promptly remit the amount due. 
    A school district shall receive: 
    (1) for a pupil who is not enrolled in classes at a 
secondary program, 12 percent of the general education formula 
allowance times .65, times 1.3; or 
    (2) for a pupil who attends classes at a secondary program 
part time, the general education formula allowance times .65, 
times 1.3, times the ratio of the total number of hours the 
pupil is in membership for courses taken by the pupil for credit 
to 1020 hours. 
    Sec. 26.  Minnesota Statutes 1992, section 123.3514, 
subdivision 6c, is amended to read: 
    Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
ACCORDING TO AGREEMENTS.] (a) The agreement between a school 
board and the governing body of a public post-secondary system 
or private post-secondary institution shall set forth the 
payment amounts and arrangements, if any, from the school board 
to the post-secondary institution.  No payments shall be made by 
the department of education according to subdivision 6 or 6b.  
For the purpose of computing state aids for a school district, a 
pupil enrolled according to subdivision 4e shall be counted in 
the average daily membership of the school district as though 
the pupil were enrolled in a secondary course that is not 
offered in connection with an agreement.  Nothing in this 
subdivision shall be construed to prohibit a public 
post-secondary system or private post-secondary institution from 
receiving additional state funding that may be available under 
any other law.  
    (b) If a course is provided under subdivision 4e, offered 
at a secondary school, and taught by a secondary teacher, the 
post-secondary system or institution must not require a payment 
from the school board that exceeds the cost to the 
post-secondary institution that is directly attributable to 
providing that course. 
    Sec. 27.  Minnesota Statutes 1992, section 123.935, 
subdivision 7, is amended to read: 
    Subd. 7.  [NONPUBLIC EDUCATION COUNCIL.] The commissioner 
shall appoint a 15-member council on nonpublic education.  The 
15 members shall represent various areas of the state, represent 
various methods of providing nonpublic education, and shall be 
knowledgeable about nonpublic education.  The compensation, 
removal of members, filling of vacancies, and terms are governed 
by section 15.0575.  The council expires as provided in section 
15.059, subdivision 5 shall not expire.  The council shall 
advise the commissioner and the state board on nonpublic school 
matters under this section.  The council may recognize 
educational accrediting agencies, for the sole purpose of 
sections 120.101, 120.102, and 120.103.  When requested by the 
commissioner or the state board, the council may submit its 
advice about other nonpublic school matters. 
    Sec. 28.  Minnesota Statutes 1992, section 124.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
pupil in average daily membership shall be counted according to 
this subdivision.  
    (a) A prekindergarten pupil with a disability who is 
enrolled for the entire fiscal year in a program approved by the 
commissioner and has an individual education plan that requires 
up to 437 hours of assessment and education services in the 
fiscal year is counted as one-half of a pupil unit.  If the plan 
requires more than 437 hours of assessment and education 
services, the pupil is counted as the ratio of the number of 
hours of assessment and education service to 875, but not more 
than one. 
    (b) A prekindergarten pupil with a disability who is 
enrolled for less than the entire fiscal year in a program 
approved by the commissioner is counted as the greater of: 
    (1) one-half times the ratio of the number of instructional 
days from the date the pupil is enrolled to the date the pupil 
withdraws to the number of instructional days in the school 
year; or 
    (2) the ratio of the number of hours of assessment and 
education service required in the fiscal year by the pupil's 
individual education program plan to 875, but not more than one. 
    (c) A prekindergarten pupil who is assessed but determined 
not to be handicapped is counted as the ratio of the number of 
hours of assessment service to 875.  
    (d) A kindergarten pupil with a disability who is enrolled 
in a program approved by the commissioner is counted as the 
ratio of the number of hours of assessment and education 
services required in the fiscal year by the pupil's individual 
education program plan to 875, but not more than one. 
    (e) A kindergarten pupil who is not included in paragraph 
(d) is counted as one-half of a pupil unit. 
    (f) A pupil who is in any of grades 1 to 6 is counted as 
one pupil unit. 
    (g) A pupil who is in any of grades 7 to 12 is counted as 
1.3 pupil units.  
    (h) A pupil who is in the post-secondary enrollment options 
program is counted as 1.3 pupil units. 
    Sec. 29.  Minnesota Statutes 1992, section 124.17, is 
amended by adding a subdivision to read: 
    Subd. 2f.  [PSEO PUPILS.] The average daily membership for 
a student participating in the post-secondary enrollment options 
program equals the lesser of 
    (1) 1.00, or 
    (2) the greater of 
    (i) .12, or 
    (ii) the ratio of the number of hours the student is 
enrolled in the secondary school to the product of the number of 
days required in section 120.101, subdivision 5b, times the 
minimum length of day required in Minnesota Rules, part 
3500.1500, subpart 1. 
    Sec. 30.  Minnesota Statutes 1992, section 124.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSTRUCTIONAL TIME.] Every district shall 
maintain school in session or provide instruction in other 
districts for at least 170 175 days through the 1994-1995 school 
year and the number of days required in section 120.101, 
subdivision 5b 1b thereafter, not including summer school, or 
the equivalent in a district operating a flexible school year 
program.  A district that holds school for the required minimum 
number of days and is otherwise qualified is entitled to state 
aid as provided by law.  If school is not held for the required 
minimum number of days, state aid shall be reduced by the ratio 
that the difference between the required number of days and the 
number of days school is held bears to the required number of 
days, multiplied by 60 percent of the basic revenue, as defined 
in section 124A.22, subdivision 2, of the district for that year.
However, districts maintaining school for fewer than the 
required minimum number of days do not lose state aid (1) if the 
circumstances causing loss of school days below the required 
minimum number of days are beyond the control of the board, (2) 
if proper evidence is submitted, and (3) if a good faith attempt 
is made to make up time lost due to these circumstances.  The 
loss of school days resulting from a lawful employee strike 
shall not be considered a circumstance beyond the control of the 
board.  Days devoted to meetings authorized or called by the 
commissioner may not be included as part of the required minimum 
number of days of school.  For grades 1 to 12, days devoted to 
parent-teacher conferences, teachers' workshops, or other staff 
development opportunities as part of the required minimum number 
of days must not exceed five days through the 1994-1995 school 
year and for subsequent school years the difference between the 
number of days required in subdivision 1b and the number of 
instructional days required in subdivision 5b.  For 
kindergarten, days devoted to parent-teacher conferences, 
teachers' workshops, or other staff development opportunities as 
part of the required minimum number of days must not exceed 
twice the number of days for grades 1 to 12. 
    Sec. 31.  Minnesota Statutes 1992, section 124.248, 
subdivision 4, is amended to read: 
    Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) An 
outcome-based school is eligible to receive other aids, grants, 
and revenue according to chapters 120 to 129, as though it were 
a school district.  However, it may not receive aid, a grant, or 
revenue if a levy is required to obtain the money, except as 
otherwise provided in this section.  Federal aid received by the 
state must be paid to the school, if it qualifies for the aid as 
though it were a school district. 
    (b) Any revenue received from any source, other than 
revenue that is specifically allowed for operational, 
maintenance, capital facilities revenue under paragraph (c), and 
capital expenditure equipment costs under this section, may be 
used only for the planning and operational start-up costs of an 
outcome-based school.  Any unexpended revenue from any source 
under this paragraph must be returned to that revenue source or 
conveyed to the sponsoring school district, at the discretion of 
the revenue source. 
    (c) An outcome-based school may receive money from any 
source for capital facilities needs.  Any unexpended capital 
facilities revenue must be reserved and shall be expended only 
for future capital facilities purposes. 
    Sec. 32.  Minnesota Statutes 1992, section 124.48, 
subdivision 3, is amended to read: 
    Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
Indian scholarship committee is established.  Members shall be 
appointed by the state board with the assistance of the Indian 
affairs council as provided in section 3.922, subdivision 6.  
Members shall be reimbursed for expenses as provided in section 
15.059, subdivision 6.  The state board shall determine the 
membership terms and duration of the committee, which expires no 
later than the date provided in section 15.059, subdivision 5 
June 30, 1997.  The committee shall provide advice to the state 
board in awarding scholarships to eligible American Indian 
students and in administering the state board's duties regarding 
awarding of American Indian post-secondary preparation grants to 
school districts. 
    Sec. 33.  Minnesota Statutes 1992, section 125.1885, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROGRAM APPROVAL.] (a) The state board of 
education shall approve alternative preparation programs based 
on criteria adopted by the board, after receiving 
recommendations from an advisory task force appointed by the 
board. 
    (b) An alternative preparation program at a school 
district, group of schools, or an education district must be 
affiliated with a post-secondary institution that has a graduate 
program in educational administration for public school 
administrators. 
    Sec. 34.  Minnesota Statutes 1992, section 126.665, is 
amended to read: 
    126.665 [STATE CURRICULUM ADVISORY COMMITTEE.] 
    The commissioner shall appoint a state curriculum advisory 
committee of 11 members to advise the state board and the 
department on the PER process.  Nine members shall be from each 
of the educational cooperative service units and two members 
shall be at-large.  The committee shall include representatives 
from the state board of education, parents, teachers, 
administrators, and school board members.  Each member shall be 
a present or past member of a district curriculum advisory 
committee.  The state committee shall provide information and 
recommendations about at least the following:  
    (1) department procedures for reviewing and approving 
reports and disseminating information; 
    (2) exemplary PER processes; 
    (3) recommendations for improving the PER process and 
reports; and 
    (4) developing a continuous process for identifying and 
attaining essential learner outcomes.  
    The committee expires as provided in section 15.059, 
subdivision 5 on June 30, 1996. 
    Sec. 35.  [126.83] [SECONDARY CREDIT FOR EIGHTH GRADE 
STUDENTS.] 
    A student in eighth grade who satisfactorily completes at 
least 120 hours of instruction in a high school course is 
eligible to receive secondary course credit and the credit shall 
count toward the student's graduation requirements.  This 
section expires August 1, 1996.  
    Sec. 36.  Minnesota Statutes 1992, section 127.15, is 
amended to read: 
    127.15 [DEALING IN SCHOOL SUPPLIES.] 
    Except as provided for in sections 471.87 and 471.88, no 
teacher in the public schools, nor any state, county, town, 
city, or district school officer, including any superintendent 
of schools, or any member of any school board, nor any person 
connected with the public school system in any capacity, shall 
be interested directly or indirectly in the sale, proceeds, or 
profits of any book, apparatus, or furniture used, or to be 
used, in any school with which the person is connected in any 
official capacity.  Any person violating any of the provisions 
of this section shall forfeit not less than $50, nor more than 
$200 for each such offense.  This section shall not apply to a 
person who may have an interest in the sale of any book of which 
that person is the author.  Nothing in this section shall 
prohibit the spouse of an employee or officer covered by this 
section from contracting with the school district for the sale 
or lease of books, apparatus, furniture, or other supplies to be 
used in a school with which the employee or officer is connected 
in any official capacity, as long as the employee's or officer's 
position does not involve approving contracts for supplies and 
the school board unanimously approves the transaction. 
    Sec. 37.  Minnesota Statutes 1992, section 127.455, is 
amended to read: 
    127.455 [MODEL POLICY.] 
    The commissioner of education shall maintain and make 
available to school boards a model sexual, religious, and racial 
harassment and violence policy.  The model policy shall address 
the requirements of section 127.46. 
    Each school board shall submit to the commissioner of 
education a copy of the sexual, religious, and racial harassment 
and sexual, religious, and racial violence policy the board has 
adopted. 
    Sec. 38.  Minnesota Statutes 1992, section 127.46, is 
amended to read: 
    127.46 [SEXUAL, RELIGIOUS, AND RACIAL HARASSMENT AND 
VIOLENCE POLICY.] 
    Each school board shall adopt a written sexual, religious, 
and racial harassment and sexual, religious, and racial violence 
policy that conforms with sections 363.01 to 363.15.  The policy 
shall apply to pupils, teachers, administrators, and other 
school personnel, include reporting procedures, and set forth 
disciplinary actions that will be taken for violation of the 
policy.  Disciplinary actions must conform with collective 
bargaining agreements and sections 127.27 to 127.39.  The policy 
must be conspicuously posted throughout each school building and 
included in each school's student handbook on school policies.  
Each school must develop a process for discussing the school's 
sexual, religious, and racial harassment and violence policy 
with students and school employees. 
    Sec. 39.  Minnesota Statutes 1992, section 128A.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [TERMS, PAY, REMOVAL, EXPIRATION.] The terms, 
pay, and provisions for removal of members, and for the 
expiration of the council are in section 15.059, subdivisions 2, 
3, and 4, and 5.  The council shall expire on June 30, 1997.  
     Sec. 40.  Minnesota Statutes 1992, section 128C.02, is 
amended by adding a subdivision to read: 
    Subd. 7.  [WOMEN REFEREES.] The league shall adopt league 
rules and policy requiring, to the extent possible, the equal 
employment of women as referees for high school activities and 
sports contests, from game level to tournament level. 
    Sec. 41.  Minnesota Statutes 1992, section 134.31, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADVISORY COMMITTEE.] The commissioner shall 
appoint an advisory committee of five members to advise the 
staff of the Minnesota library for the blind and physically 
handicapped on long-range plans and library services.  Members 
shall be people who use the library.  Section 15.059 governs 
this committee except that the committee shall expire on June 
30, 1997. 
    Sec. 42.  Minnesota Statutes 1992, section 144.4165, is 
amended to read: 
    144.4165 [TOBACCO PRODUCTS PROHIBITED IN PUBLIC SCHOOLS.] 
    No person shall at any time smoke or use any other, chew, 
or otherwise ingest tobacco or a tobacco product in a public 
school, as defined in section 120.05, subdivision 2.  This 
prohibition extends to all facilities, whether owned, rented, or 
leased, and all vehicles that a school district owns, leases, 
rents, contracts for, or controls.  This prohibition does not 
apply to a technical college.  Nothing in this section shall 
prohibit the lighting of tobacco by an adult as a part of a 
traditional Indian spiritual or cultural ceremony.  For purposes 
of this section, an Indian is a person who is a member of an 
Indian tribe as defined in section 257.351, subdivision 9. 
    Sec. 43.  Minnesota Statutes 1992, section 471.88, is 
amended by adding a subdivision to read: 
    Subd. 16.  [SCHOOL DISTRICT.] Notwithstanding subdivision 
5, a school board member may be newly employed or may continue 
to be employed by a school district as an employee only if there 
is a reasonable expectation at the beginning of the fiscal year 
or at the time the contract is entered into or extended that the 
amount to be earned by that officer under that contract or 
employment relationship will not exceed $5,000 in that fiscal 
year.  Notwithstanding section 125.12 or 125.17 or other law, if 
the officer does not receive unanimous approval to continue in 
employment at a meeting at which all board members are present, 
that employment is immediately terminated and that officer has 
no further rights to employment while serving as a school board 
member in the district. 
    Sec. 44.  Minnesota Statutes 1992, section 609.685, 
subdivision 3, is amended to read: 
    Subd. 3.  [PETTY MISDEMEANOR.] Whoever uses smokes, chews, 
or otherwise ingests, purchases, or attempts to purchase tobacco 
or tobacco related devices and is under the age of 18 years is 
guilty of a petty misdemeanor.  This subdivision does not apply 
to a person under the age of 18 years who purchases or attempts 
to purchase tobacco or tobacco related devices while under the 
direct supervision of a responsible adult for training, 
education, research, or enforcement purposes. 
    Sec. 45.  Minnesota Statutes 1992, section 609.685, is 
amended by adding a subdivision to read: 
    Subd. 5.  [EXCEPTION.] Notwithstanding subdivision 2, an 
Indian may furnish tobacco to an Indian under the age of 18 
years if the tobacco is furnished as part of a traditional 
Indian spiritual or cultural ceremony.  For purposes of this 
subdivision, an Indian is a person who is a member of an Indian 
tribe as defined in section 257.351, subdivision 9. 
    Sec. 46.  [DESEGREGATION RULE.] 
    Subdivision 1.  [MEETINGS.] The state board of education 
shall convene several roundtable discussion meetings to address 
issues regarding the board's proposed changes to the 
desegregation and inclusive education rules.  Participants in 
these discussion meetings shall include, but not be limited to, 
representatives of the three cities of the first class, NAACP, 
Urban League, Urban Coalition, American Indian Affairs Council, 
Asian-Pacific Council, Spanish-Speaking Affairs Council, Centro 
Cultural Chicano, Chicanos y Latinos Unidos En Servicio, 
Division of Indian Works, Lao Family Community of Minnesota, 
Women's Association of Hmong and Lao, Hmong American 
Partnership, Council on Black Minnesotans, state board's 
desegregation task forces, parents, students, and 
representatives of suburban districts. 
    Subd. 2.  [DISCUSSION ISSUES.] (a) The purpose of these 
discussions shall be to recommend changes in the desegregation 
rule to better fulfill the promise of equal educational 
opportunity articulated in the landmark United States Supreme 
Court case of Brown v. Board of Education.  
     (b) The issues to be discussed at these meetings shall at 
minimum include: 
    (1) standards for approving or disapproving desegregation 
plans; 
    (2) implementation and compliance issues; 
    (3) thresholds for requiring desegregation plans; 
    (4) legally permissible alternative approaches to meeting 
the needs of students of color; 
    (5) methods for preventing resegregation in urban 
districts, including metropolitanwide desegregation approaches; 
    (6) fiscal implications of proposed changes; 
    (7) housing and transportation issues relating to 
segregation; 
    (8) a review of current demographics and enrollment trends; 
and 
    (9) how all students may participate in open enrollment 
under a desegregation plan. 
    Subd. 3.  [RESOURCE PERSONS; STAFF.] The state board shall 
utilize nationally known legal and research experts to the 
extent possible to assist in the discussions.  The department of 
education shall provide staff for these meetings. 
    Subd. 4.  [REPORT.] The state board of education shall 
report to the legislature on the results of these discussions by 
January 1, 1994, prior to commencing the formal rulemaking 
process. 
    Sec. 47.  [1992 PSEO PART-TIME SECONDARY PUPILS.] 
    For fiscal year 1992, for a pupil who attended a 
post-secondary institution under Minnesota Statutes, section 
123.3514, and attended a secondary school part time, a district 
shall receive revenue on behalf of the pupil under Minnesota 
Statutes, sections 124.12, subdivision 1, and 124.17, 
subdivision 2f, plus 12 percent of the formula allowance 
according to Minnesota Statutes 1992, section 124A.22, 
subdivision 2, times 1.3. 
    Sec. 48.  [EDUCATION APPROPRIATION ACCOUNTS.] 
    Notwithstanding any law to the contrary, the education aid 
appropriation accounts relating to fiscal year 1992 shall remain 
open on the statewide accounting system, and the commissioner of 
finance shall transfer amounts among accounts and make 
transactions as requested by the commissioner of education as 
necessary to accomplish the retroactive provisions of (sections 
123.3514, subd. 6; and 124.17, subds. 1 and 2), and the 
provisions of section 124.14, subdivision 7, for fiscal year 
1992. 
    Sec. 49.  [CHANGE-ORIENTED SCHOOLS.] 
    Subdivision 1.  [ESTABLISHMENT; PURPOSE.] (a) A five-year 
pilot project is established to permit up to three project 
participants selected by the commissioner of education to 
develop and implement substantive changes in a school's 
educational program and operational structure.  A project may be 
extended one time for up to an additional five years at the 
commissioner's discretion. 
    (b) The purpose of the pilot project is to identify 
innovative educational strategies that effectively improve 
public education by: 
    (1) increasing students' academic and vocational abilities 
and educational opportunities through relevant, readily 
measurable, and clearly defined interdisciplinary subject matter 
and skills-oriented outcomes and performance standards; 
    (2) promoting innovative approaches to teaching through 
meaningful, site-based decision making; and 
    (3) developing a service-oriented management and 
operational structure that allows school staff at the school 
site to identify students' educational needs and effectively 
allocate resources to meet those needs. 
    Subd. 2.  [ELIGIBILITY; APPLICATIONS.] The commissioner 
shall make application forms available to schools interested in 
developing and implementing the substantive changes described in 
this section.  A school may apply to participate in the project 
after receiving approval to apply from the school board of the 
school district in which the school is located.  The 
commissioner may approve a maximum of three applications before 
July 1, 1994.  To the extent possible, the approved applications 
must reflect innovative educational strategies that improve 
public education and are geographically distributed throughout 
the state. 
    Subd. 3.  [CRITERIA FOR SELECTION.] At a minimum, 
applicants must express commitment to: 
    (1) creating a site-based management team, composed of the 
school principal, teachers, other school employees, parents of 
students enrolled in the school, and other determined by the 
team to be appropriate team members, that are responsible for 
managing the school's educational program and operational 
structure; 
    (2) developing a relevant, appropriately rigorous, 
interdisciplinary curriculum; 
    (3) periodically assessing the knowledge and skills of 
students, and the efficacy of teachers and administrators 
according to clearly defined substantive outcomes and measurable 
performance standards; 
    (4) providing in-service training to implement innovative 
educational strategies; 
    (5) using available public and private educational and 
financial resources at the local, state, and national levels; 
and 
    (6) sharing educational findings, materials, and techniques 
with other school districts. 
    Subd. 4.  [EXEMPTIONS; REQUIREMENTS.] (a) Except as 
otherwise provided in this section, a school participating in 
the pilot project is exempt from all state statutes and rules 
applicable to a school board or school district, although it may 
elect to comply with one or more state statutes and rules.  The 
exemptions do not apply to the school board of the school 
district in which the participating school is located.  
    (b) Applicants selected to participate in the project must: 
    (1) meet the health and safety requirements applicable to 
other school districts; 
    (2) ensure that all facets of the program are nonsectarian; 
    (3) provide a comprehensive education program for all 
enrolled students; 
    (4) comply with Minnesota Statutes, section 126.21, and 
chapter 363; 
    (5) comply with the pupil fair dismissal law, Minnesota 
Statutes, sections 127.26 to 127.39, and the Minnesota public 
school fee law, Minnesota Statutes, sections 120.71 to 120.76; 
    (6) be subject to the same audit requirements as other 
school districts; 
    (7) function as other school districts for the purposes of 
tort liability under Minnesota Statutes, chapter 466; 
    (8) design and implement measurable education program 
outcomes at least equivalent to the entrance requirements of the 
University of Minnesota if the participating school is a high 
school; 
    (9) comply with Minnesota Statutes, sections 120.03 and 
120.17, and rules governing the education of disabled children; 
    (10) provide instruction each year for at least the minimum 
number of days required by Minnesota Statutes, section 120.101, 
subdivisions 5 and 5b, or according to Minnesota Statutes, 
sections 120.59 to 120.67 or 121.585; 
    (11) provide transportation to students enrolled at a 
school located within the district according to Minnesota 
Statutes, sections 120.062, subdivision 9, and 123.39, 
subdivision 6; 
    (12) permit teachers employed by the district to teach at 
another site within the district; 
    (13) function as other school districts for purposes of 
suing and being sued; 
    (14) comply with election laws applicable to school 
district elections under Minnesota Statutes, section 123.11 and 
chapter 205A; 
    (15) comply with all teacher licensure requirements in 
statute and rule; and 
    (16) comply with all employment laws applicable to school 
district employees. 
    Subd. 5.  [REPORTS.] Pilot project participants must 
provide a clear and concise report at least annually by October 
1 to the commissioner discussing: 
    (1) the state statutes and rules with which the project 
participant is not complying, as permitted in subdivision 4; 
    (2) how not complying with state statutes and rules 
improves learning and educational effectiveness; 
    (3) the financial impact of not complying with state 
statutes and rules; 
    (4) the educational progress the project participant made 
during the previous school year; 
    (5) the education goals of the project participant for the 
current school year; and 
    (6) any other information the commissioner requests. 
    Sec. 50.  [STUDY ON TRAINING OPPORTUNITIES FOR WOMEN 
REFEREES.] 
    The Minnesota state high school league shall submit a 
written report to the education committees of the legislature by 
February 15, 1994, analyzing the extent of the opportunities 
available for women to train and serve as referees at 
league-sponsored events. 
    Sec. 51.  [INDEPENDENT SCHOOL DISTRICT NO. 206, ALEXANDRIA; 
ELECTIONS.] 
    Notwithstanding Laws 1987, chapter 96, relating to the 
beginning of the term of office for newly elected board members, 
the terms of office for newly elected board members of 
independent school district No. 206, Alexandria, begin and end 
as provided for in Minnesota Statutes, section 205A.04, 
subdivision 1. 
    Sec. 52.  [EXEMPTIONS; EIGHT-PERIOD SCHEDULE.] 
    (a) Notwithstanding Minnesota Statutes, sections 120.101, 
subdivision 5; 120.66; 121.585; 124.19, subdivisions 1, 4, 6, 
and 7; 124C.46, subdivision 3; 126.12, subdivision 1; or any 
other law to the contrary, independent school district No. 279, 
Osseo, may adopt for the 1993-1994, 1994-1995, and 1995-1996 
school years an alternating eight-period schedule for secondary 
school students composed of four 85-minute periods per day held 
on alternating school days.  The purpose of the alternating 
eight-period schedule is to enable the school district to 
temporarily meet its increasing needs for additional space due 
to enrollment increases at the secondary level.  The new 
schedule must not change district curricular offerings, 
transportation schedules, the length of employees' workday, or 
extracurricular activities.  The district must offer registered 
secondary students the opportunity to enroll in a minimum of 
five classes in an eight-period schedule. 
    (b) The district may adopt the eight-period schedule 
without loss of state aid if the district meets the requirements 
of paragraph (a).  The commissioner of education, in 
consultation with the district, shall determine the minimum 
number of instructional hours so that the district is eligible 
for the full amount of general education revenue. 
    (c) The district may adopt the eight-period schedule only 
upon school board resolution following a public hearing.  Notice 
of the hearing must be published in the official newspaper at 
least one week in advance. 
    (d) Any student affected by the eight-period schedule is 
exempt from the enrollment options program deadline in Minnesota 
Statutes, section 120.062. 
    (e) The district, with the assistance of the department of 
education, shall conduct a study of the impact of the 
eight-period schedule on student performance.  The district 
shall include information on cohorts before adopting an 
eight-period schedule and compare them to students enrolled in a 
program using an eight-period schedule.  The district shall 
conduct a survey of students and parents on the effectiveness of 
the eight-period schedule.  The department shall evaluate the 
financial impact of the eight-period schedule.  The district 
shall make a preliminary report on the effectiveness of the 
eight-period schedule to the legislature by January 15, 1995, 
and a final report by January 15, 1997. 
    Sec. 53.  [SPECIAL EFFECTIVE DATE AND APPLICABILITY TO THE 
TODD - OTTER TAIL - WADENA SPECIAL EDUCATION COOPERATIVE.] 
    Sections 20 and 21 apply to the Todd - Otter Tail - Wadena 
special education cooperative and its participating school 
districts:  independent school district No. 543, Deer Creek; 
independent school district No. 545, Henning; independent school 
district No. 549, Perham-Dent; independent school district No. 
553, New York Mills; independent school district No. 786, 
Bertha-Hewitt; independent school district No. 818, Verndale; 
independent school district No. 819, Wadena; independent school 
district No. 820, Sebeka; and independent school district No. 
821, Menahga, and are effective the day following their final 
enactment.  If the board of any participating school district 
has given notice of intent to withdraw from special education 
services provided by the cooperative before final enactment, the 
deadline specified in Minnesota Statutes, section 122.895, 
subdivision 3, is six days following the final enactment and the 
deadline specified in Minnesota Statutes, section 122.895, 
subdivision 6, paragraph (b), for notice of a teacher's exercise 
of rights under that subdivision is 16 days following final 
enactment. 
    Sec. 54.  [REPEALER.] 
    Laws 1991, chapter 265, article 4, section 29, is repealed 
the day after final enactment of this article. 
    Minnesota Statutes 1992, sections 120.0621, subdivision 5, 
and 121.87, are repealed. 
    Sec. 55.  [EFFECTIVE DATES.] 
    Section 16 is effective when the term of the office of 
governor ends on the first Monday in January 1995. 
    Sections 24, 28, and 29 are effective retroactive to July 
1, 1991, and apply for fiscal year 1992 and thereafter. 
    Section 49 is effective the day after its final enactment. 
     Section 51 is effective the day after the clerk of the 
school board of independent school district No. 206, Alexandria, 
complies with Minnesota Statutes, section 645.021, subdivision 
3.  Section 52 is effective the day following final enactment 
and remains in effect only through the 1995-1996 school year.  
Sections 36 and 43 are effective June 30, 1993. 
    Section 31 applies to outcome-based schools approved after 
the effective date of section 31. 

                               ARTICLE 10 

                               LIBRARIES 
     Section 1.  [LIBRARY APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
according to Minnesota Statutes, sections 134.32 to 134.35: 
     $7,819,000     .....     1994 
     $7,819,000     .....     1995 
    The 1994 appropriation includes $1,172,000 for 1993 and 
$6,647,000 for 1994.  
    The 1995 appropriation includes $1,172,000 for 1994 and 
$6,647,000 for 1995.  
    Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
grants according to Minnesota Statutes, sections 134.353 and 
134.354, to multicounty, multitype library systems: 
     $527,000       .....     1994 
     $527,000       .....     1995 
    The 1994 appropriation includes $79,000 for 1993 and 
$448,000 for 1994.  
    The 1995 appropriation includes $79,000 for 1994 and 
$448,000 for 1995. 
    Subd. 4.  [STATE AGENCY LIBRARIES.] For maintaining and 
upgrading the online computer-based library catalog system in 
state agency libraries: 
     $15,000     .....     1994
     $15,000     .....     1995
    Any balance in the first year does not cancel and is 
available in the second year.  These amounts are added to 
amounts included in the appropriation for the department of 
education budget that are for the same purpose. 

                               ARTICLE 11

                             STATE AGENCIES
    Section 1.  [121.163] [FEDERAL AID TO EDUCATION.] 
    Subdivision 1.  [ACCEPTANCE.] The commissioner may accept 
and administer federal funds when such funds become available 
that further public education and are consistent with state 
policy and the mission of the department.  Acceptance of the 
money is subject to department of finance policy and procedure 
regarding federal funds. 
    Subd. 2.  [STATE PLANS.] If the granting federal agency 
requires a state plan addressing policy for expenditure, the 
state board shall adopt a state plan in conformity with state 
and federal regulations and guidelines prior to commissioner 
acceptance. 
    Subd. 3.  [DEPOSITORY.] The state treasurer is the 
custodian of all money received from the United States on 
account of the acceptance and shall disburse the money on 
requisitioning of the commissioner through the state payment 
system for purposes consistent with the respective acts of 
congress and federal grant. 
    Sec. 2.  Minnesota Statutes 1992, section 124C.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FUNDING.] Each site shall receive $1,250 
each year for two years.  If fewer than 30 sites are selected, 
each site shall receive an additional proportionate share of 
money appropriated and not used.  Before receiving money for the 
second year, a long-range plan for arts education must be 
submitted to the department Minnesota center for arts education. 
    Sec. 3.  Minnesota Statutes 1992, section 124C.08, 
subdivision 2, is amended to read: 
    Subd. 2.  [CRITERIA.] The department of education center, 
in consultation with the comprehensive arts planning program 
state steering committee, shall establish criteria for site 
selection.  Criteria shall include at least the following:  
    (1) a willingness by the district or group of districts to 
designate a program chair for comprehensive arts planning with 
sufficient authority to implement the program; 
    (2) a willingness by the district or group of districts to 
create a committee comprised of school district and community 
people whose function is to promote comprehensive arts education 
in the district; 
    (3) commitment on the part of committee members to 
participate in training offered by the department of education; 
    (4) 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, unless that district has 
joined a new group of districts; and 
    (8) location of the district or group of districts to 
assure representation of urban, suburban, and rural districts 
and distribution of sites throughout the state. 
    Sec. 4.  Minnesota Statutes 1992, section 124C.09, is 
amended to read: 
    124C.09 [DEPARTMENT RESPONSIBILITY.] 
    The department of education Minnesota center for arts 
education, in cooperation with the Minnesota alliance for arts 
in education, and the Minnesota state arts board, and the 
Minnesota center for arts education shall provide materials, 
training, and assistance to the arts education committees in the 
school districts.  The department center may contract with the 
Minnesota alliance for arts in education for its involvement in 
providing services, including staff assistance, to the program.  
    Sec. 5.  [128A.11] [STUDENT ACTIVITIES ACCOUNT.] 
    Subdivision 1.  [STUDENT ACTIVITIES; RECEIPTS; 
APPROPRIATION.] All receipts of any kind generated to operate 
student activities, including student fees, donations and 
contributions, and gate receipts must be deposited in the state 
treasury.  The receipts are appropriated annually to the 
residential academies for student activities purposes.  They are 
not subject to budgetary control by the commissioner of finance. 
    Subd. 2.  [TO STUDENT ACTIVITIES ACCOUNT.] The money 
appropriated in subdivision 1 to the residential academies for 
student activities must be credited to a Faribault academies' 
student activities account and may be spent only for Faribault 
academies' student activities purposes. 
    Subd. 3.  [CARRYOVER.] An unexpended balance in the 
Faribault academies' student activities account may be carried 
over from the first fiscal year of the biennium into the second 
fiscal year of the biennium and from one biennium to the next.  
The amount carried over must not be taken into account in 
determining state appropriations and must not be deducted from a 
later appropriation. 
    Subd. 4.  [SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money 
generated by a Faribault academies' student activity that 
involves:  
    (1) state employees who are receiving compensation for 
their involvement with the activity; 
    (2) the use of state facilities; or 
    (3) money raised for student activities in the name of the 
residential academies 
is specifically included among the kinds of receipts that are 
described in subdivision 1. 
    Sec. 6.  Minnesota Statutes 1992, section 171.29, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEES, ALLOCATION.] (a) A person whose drivers 
license has been revoked as provided in subdivision 1, except 
under section 169.121 or 169.123, shall pay a $30 fee before the 
person's drivers license is reinstated. 
    (b) A person whose drivers license has been revoked as 
provided in subdivision 1 under section 169.121 or 169.123 shall 
pay a $250 fee before the person's drivers license is reinstated 
to be credited as follows: 
    (1) 20 percent shall be credited to the trunk highway fund; 
    (2) 55 percent shall be credited to the general fund; 
    (3) eight percent shall be credited to a separate account 
to be known as the bureau of criminal apprehension account.  
Money in this account may be appropriated to the commissioner of 
public safety and shall be divided as follows:  eight percent 
for laboratory costs; two percent for carrying out the 
provisions of section 299C.065; 
    (4) 12 percent shall be credited to a separate account to 
be known as the alcohol-impaired driver education account.  
Money in the account may be appropriated to the commissioner of 
education for grants to develop alcohol-impaired driver 
education and chemical abuse prevention programs in elementary 
and secondary schools.  The state board of education shall 
establish guidelines for the distribution of the grants.  At 
least $70,000 must be awarded in grants to local school 
districts; and 
    (5) five percent shall be credited to a separate account to 
be known as the traumatic brain injury and spinal cord injury 
account.  $100,000 is annually appropriated from the account to 
the commissioner of human services for traumatic brain injury 
case management services.  The remaining money in the account is 
annually appropriated to the commissioner of health to establish 
and maintain the traumatic brain injury and spinal cord injury 
registry created in section 144.662 and to reimburse the 
commissioner of jobs and training for the reasonable cost of 
services provided under section 268A.03, clause (o). 
    Sec. 7.  [DEPARTMENT OF EDUCATION APPROPRIATIONS.] 
    The sums indicated in this section are appropriated from 
the general fund, unless otherwise indicated, to the department 
of education for the fiscal years designated. 
     $14,564,000     .....     1994
     $14,587,000     .....     1995
    Any balance in the first year does not cancel but is 
available in the second year. 
    $21,000 each year is from the trunk highway fund. 
    $104,000 each year is for the academic excellence 
foundation. 
    $219,000 each year is for the state board of education. 
    $200,000 each year is for contracting with the state fire 
marshal to provide the services required according to Minnesota 
Statutes, section 121.1502. 
    $120,000 each year is for facilities planning, coordination 
of facility needs between school districts, and for review and 
comment on school construction projects. 
    $45,000 each year must be used to assist districts with the 
assurance of mastery program. 
    The expenditures of federal grants and aids as shown in the 
biennial budget document are approved and appropriated and shall 
be spent as indicated. 
    The board of teaching budget is not exempt from internal 
reallocations and reductions required to balance the budget of 
the combined agencies. 
    The commissioner shall maintain no more than five total 
complement in the categories of commissioner, deputy 
commissioner, assistant commissioner, assistant to the 
commissioner, and executive assistant. 
    The department of education may establish full-time, 
part-time, or seasonal positions as necessary to carry out 
assigned responsibilities and missions.  Actual employment 
levels are limited by the availability of state funds 
appropriated for salaries, benefits, and agency operations or 
funds available from other sources for such purposes. 
    In the next biennial budget, the department of education 
must assess its progress in meeting its established performance 
measures and inform the legislature on the content of that 
assessment.  The information must include an assessment of its 
progress by consumers and employees. 
    Sec. 8.  [FARIBAULT ACADEMIES APPROPRIATION.] 
    The sums indicated in this section are appropriated from 
the general fund to the department of education for the 
Faribault Academies:  
     $7,784,000     .....    1994
     $8,053,000     .....    1995
    Any balance in the first year does not cancel and is 
available for the second year. 
    The state board of education may establish full-time, 
part-time, or seasonal positions as necessary to carry out 
assigned responsibilities and missions of the Faribault 
academies.  Actual employment levels are limited by the 
availability of state funds appropriated for salaries, benefits 
and agency operations or funds available from other sources for 
such purposes. 
    In the next biennial budget, the state board of education 
must assess its progress in meeting its established performance 
measures for the Faribault academies and inform the legislature 
on the content of that assessment.  The information must include 
an assessment of its progress by consumers and employees. 
    Sec. 9.  [MINNESOTA CENTER FOR ARTS EDUCATION 
APPROPRIATIONS.] 
    The sums indicated in this section are appropriated from 
the general fund to the Minnesota center for arts education for 
the fiscal years indicated: 
     $4,853,000     .....     1994
     $4,853,000     .....     1995
    Any balance in the first year does not cancel but is 
available in the second year. 
    The center must provide assistance to the department of 
education for learner outcome development and assessment in the 
arts.  If a reduction in programs is required under this 
section, no more than 40 percent of the reduction shall occur in 
resource center programs. 
    $38,000 each year is for grants according to section 
124C.08.  The center must provide technical assistance as 
necessary. 
    The Minnesota center for arts education may establish 
full-time, part-time, or seasonal positions as necessary to 
carry out assigned responsibilities and missions.  Actual 
employment levels are limited by the availability of state funds 
appropriated for salaries, benefits and agency operations or 
funds available from other sources for such purposes.  
    In the next biennial budget, the Minnesota center for arts 
education must assess its progress in meeting its established 
performance measures and inform the legislature on the content 
of that assessment.  The information must include an assessment 
of its progress by consumers and employees. 
    Sec. 10.  [REPEALER.] 
    Minnesota Statutes 1992, sections 126A.02, subdivision 1, 
and 126A.03, are repealed. 

                               ARTICLE 12 

                            MANDATE REPEALS 

                  OMNIBUS EDUCATION MANDATE REPEAL ACT
TO PROMOTE LOCAL FLEXIBILITY AND INNOVATION
IN THE CLASSROOM
    Section 1.  [PURPOSE.] 
    The legislature recognizes the need to give communities 
more local control over education so they can better fulfill the 
public school system's mission of ensuring individual academic 
achievement, an informed citizenry, and a highly productive work 
force.  The purpose of this act is to repeal or modify 
restrictive and unnecessary mandates that hamper flexibility and 
innovation.  The state's focus should be on performance rather 
than procedures.  By decentralizing decision-making and 
emphasizing result-oriented rulemaking, this act also furthers 
the legislature's goal of moving from a means-based system of 
education to one that is accountable for outcomes. 

                           MINNESOTA STATUTES
    Sec. 2.  Minnesota Statutes 1992, section 121.11, 
subdivision 7, is amended to read: 
    Subd. 7.  [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] 
The state board of education shall adopt goals for and exercise 
general supervision over public schools and public educational 
agencies in the state, classify and standardize public 
elementary and secondary schools, and prepare for them outlines 
and suggested courses of study.  The board shall develop a plan 
to attain the adopted goals.  At the board's request, the 
commissioner may assign department of education staff to assist 
the board in attaining its goals.  The commissioner shall 
explain to the board in writing any reason for refusing or 
delaying a request for staff assistance.  The board shall 
establish rules relating to examinations, reports, acceptances 
of schools, courses of study, and other proceedings in 
connection with elementary and secondary schools applying for 
special state aid.  The state board may recognize educational 
accrediting agencies for the sole purposes of sections 120.101, 
120.102, and 120.103. 
    Sec. 3.  Minnesota Statutes 1992, section 121.11, is 
amended by adding a subdivision to read: 
    Subd. 7b.  [ADMINISTRATIVE RULES.] The state board may 
adopt new rules and amend them or amend any of its existing 
rules only under specific authority.  The state board may repeal 
any of its existing rules.  Notwithstanding the provisions of 
section 14.05, subdivision 4, the state board may grant a 
variance to its rules upon application by a school district for 
purposes of implementing experimental programs in learning or 
school management.  This subdivision shall not prohibit the 
state board from making technical changes or corrections to its 
rules. 
    Sec. 4.  Minnesota Statutes 1992, section 121.11, is 
amended by adding a subdivision to read: 
    Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] The 
legislature is committed to establishing a rigorous, 
results-oriented graduation rule for Minnesota's public school 
students.  To that end, the state board shall use its rulemaking 
authority under subdivision 7b to adopt a statewide, 
results-oriented graduation rule to be implemented starting with 
students beginning high school in 1996.  The board shall not 
prescribe in rule or otherwise the delivery system, form of 
instruction, or a single statewide form of assessment that local 
sites must use to meet the requirements contained in this rule. 
     Sec. 5.  Minnesota Statutes 1992, section 121.11, is 
amended by adding a subdivision to read: 
    Subd. 7d.  [DESEGREGATION, INCLUSIVE EDUCATION, AND 
LICENSURE RULES.] The state board may make rules relating to 
desegregation, inclusive education, and licensure of school 
personnel not licensed by the board of teaching. 
    Sec. 6.  Minnesota Statutes 1992, section 121.11, 
subdivision 12, is amended to read: 
    Subd. 12.  [ADMINISTRATIVE RULES TEACHER RULE 
VARIANCES.] The state board may adopt new rules only upon 
specific authority other than under this subdivision.  The state 
board may amend or repeal any of its existing rules.  
Notwithstanding the provisions of section 14.05, subdivision 4, 
the state board may grant a variance to its rules upon 
application by a school district for purposes of implementing 
experimental programs in learning or school management.  
Notwithstanding any law to the contrary, and only upon receiving 
the agreement of the state board of teaching, the state board of 
education may grant a variance to its rules governing licensure 
of teachers for those teachers licensed by the board of 
teaching.  The state board may grant a variance, without the 
agreement of the board of teaching, to its rules governing 
licensure of teachers for those teachers it licenses. 
    Sec. 7.  Minnesota Statutes 1992, section 121.14, is 
amended to read: 
    121.14 [RECOMMENDATIONS; BUDGET.] 
    The state board and the commissioner of education shall 
recommend to the governor and legislature such modification and 
unification of laws relating to the state system of education as 
shall make those laws more readily understood and more effective 
in execution.  The state board and The commissioner of education 
shall prepare a biennial education budget which shall be 
submitted to the governor and legislature, such budget to 
contain a complete statement of finances pertaining to the 
maintenance of the state department and to the distribution of 
state aid.  
    Sec. 8.  Minnesota Statutes 1992, section 121.585, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE BOARD DESIGNATION.] An area learning 
center designated by the state must be a site.  Up to an 
additional ten learning year sites may be designated by the 
state board of education.  To be designated, a district or 
center must demonstrate to the commissioner of education that it 
will: 
    (1) provide a program of instruction that permits pupils to 
receive instruction throughout the entire year; and 
    (2) maintain a record system that, for purposes of section 
124.17, permits identification of membership attributable to 
pupils participating in the program.  The record system and 
identification must ensure that the program will not have the 
effect of increasing the total number of pupil units 
attributable to an individual pupil as a result of a learning 
year program.  
    Sec. 9.  Minnesota Statutes 1992, section 121.88, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORIZATION.] Each school board may 
initiate a community education program in its district and 
provide for the general supervision of 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. 
    Sec. 10.  Minnesota Statutes 1992, section 121.88, 
subdivision 7, is amended to read: 
    Subd. 7.  [PROGRAM APPROVAL.] To be eligible for revenue 
for the program for adults with disabilities, a program and 
budget must receive approval from the community education 
section in the department of education.  Approval may be for one 
or two five years.  During that time, a school board must report 
any significant changes to the department for approval.  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.  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 adults with disabilities in developing 
the program; 
    (5) assessment of the needs of adults with disabilities; 
and 
    (6) cooperative efforts with community organizations. 
    Sec. 11.  Minnesota Statutes 1992, section 121.904, 
subdivision 14, is amended to read: 
    Subd. 14.  The state board commissioner shall specify the 
fiscal year or years to which the revenue from any aid or tax 
levy is applicable if Minnesota Statutes do not so specify. 
    Sec. 12.  Minnesota Statutes 1992, section 121.906, is 
amended to read: 
    121.906 [EXPENDITURES; REPORTING.] 
    Subdivision 1.  School district expenditures shall be 
recognized and reported on the district books of account in 
accordance with this section. 
    Subd. 2.  [RECOGNITION OF EXPENDITURES AND LIABILITIES.] 
There shall be fiscal year-end recognition of expenditures and 
the related offsetting liabilities recorded in each fund in 
accordance with the uniform financial accounting and reporting 
standards for Minnesota school districts.  Encumbrances 
outstanding at the end of the fiscal year do not constitute 
expenditures or liabilities.  
    Subd. 3.  [PURCHASE ORDERS OTHER THAN INVENTORY.] Purchase 
orders, itemized in detail, for other than inventory supply 
items, which are issued to outside vendors and based on firm 
prices shall be recorded as expenditures in the fiscal year in 
which the liability is incurred. 
    Subd. 4.  Inventory supply items may be recorded as 
expenditures at the time of the issuance of the purchase order 
or at the time of delivery to the school district's subordinate 
unit or other consumer of the item. 
    Subd. 5.  Salaries and wages shall be recorded as 
expenditures in the fiscal year in which the personal services 
are performed. 
    Subd. 6.  Other payable items shall be recorded in the 
fiscal year in which the liability is incurred. 
    Subd. 7.  Deviations from the principles set forth in this 
section shall be evaluated and explained in footnotes to audited 
financial statements. 
    Sec. 13.  Minnesota Statutes 1992, section 121.908, 
subdivision 1, is amended to read: 
    Subdivision 1.  On or before June 30, 1977, Each Minnesota 
school district shall adopt the uniform financial accounting and 
reporting standards for Minnesota school districts provided for 
in section 121.902 guidelines adopted by the department of 
education. 
    Sec. 14.  Minnesota Statutes 1992, section 121.908, 
subdivision 2, is amended to read: 
    Subd. 2.  Each district shall submit to the commissioner by 
August 15 of each year an unaudited financial statement for the 
preceding fiscal year.  This statement shall be submitted on 
forms prescribed by the commissioner after consultation with the 
advisory council on uniform financial accounting and reporting 
standards. 
    Sec. 15.  Minnesota Statutes 1992, section 123.34, 
subdivision 10, is amended to read: 
    Subd. 10.  [PRINCIPALS.] Each public school building, as 
defined by section 120.05, subdivision 2, clauses (1), (2) and 
(3), in an independent school district shall may be under the 
supervision of a principal who is assigned to that 
responsibility by the board of education in that school district 
upon the recommendation of the superintendent of schools of that 
school district.  If pupils in kindergarten through grade 12 
attend school in one building, one principal may supervise the 
building. 
    Each principal assigned the responsibility for the 
supervision of a school building shall hold a valid license in 
the assigned position of supervision and administration as 
established by the rules of the state board of education. 
    The principal shall provide administrative, supervisory, 
and instructional leadership services, under the supervision of 
the superintendent of schools of the school district and in 
accordance with the policies, rules, and regulations of the 
board of education, for the planning, management, operation, and 
evaluation of the education program of the building or buildings 
to which the principal is assigned. 
    Sec. 16.  Minnesota Statutes 1992, section 123.35, 
subdivision 1, is amended to read: 
    Subdivision 1.  The board shall have the general charge of 
the business of the district, the school houses, and of the 
interests of the schools thereof.  The board's authority to 
conduct the business of the district includes implied powers in 
addition to any specific powers granted by the legislature. 
    Sec. 17.  Minnesota Statutes 1992, section 123.80, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state board of education shall provide 
by rule a program of safety education for students who are 
transported to school.  Each district receiving aid under the 
provisions of section 124.225 shall implement the program.  In 
drafting said rules, the board shall give particular attention 
to procedures for loading, unloading, vehicle lane crossing and 
emergency evacuation procedures as they affect school 
buses. provide bus safety education for students who are 
transported to school. 
    Sec. 18.  Minnesota Statutes 1992, 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 operating a program pursuant to sections 120.59 to 
120.67 or 125.701 to 125.705, or operating a 
commissioner-designated area learning center program under 
section 124C.49, or that otherwise receives the approval of the 
commissioner to operate its instructional program to avoid an 
aid reduction in any year, may adjust the annual school schedule 
for that program throughout the calendar year so long as the 
number of instructional hours in the year is not less than the 
number of instructional hours per day specified in the rules of 
the state board multiplied by the minimum number of 
instructional days required by subdivision 1.  
    Sec. 19.  Minnesota Statutes 1992, section 124.26, 
subdivision 1c, is amended to read: 
    Subd. 1c.  [PROGRAM APPROVAL.] To receive aid under this 
section, a district must submit an application by June 1 
describing the program, on a form provided by the department.  
The program must be approved by the commissioner according to 
the following criteria:  
    (1) how the needs of different levels of learning will be 
met; 
    (2) for continuing programs, an evaluation of results; 
    (3) anticipated number and education level of participants; 
    (4) coordination with other resources and services; 
    (5) participation in a consortium, if any, and money 
available from other participants; 
    (6) management and program design; 
    (7) volunteer training and use of volunteers; 
    (8) staff development services; 
    (9) program sites and schedules; and 
    (10) program expenditures that qualify for aid.  
    The commissioner may contract with a private, nonprofit 
organization to provide services that are not offered by a 
district or that are supplemental to a district's program.  The 
program provided under a contract must be approved according to 
the same criteria used for district programs. 
    Adult basic education programs may be approved under this 
subdivision for up to two five years.  Two-year Five-year 
program approval shall be granted to an applicant who has 
demonstrated the capacity to: 
     (1) offer comprehensive learning opportunities and support 
service choices appropriate for and accessible to adults at all 
basic skill need levels; 
     (2) provide a participatory and experimental learning 
approach based on the strengths, interests, and needs of each 
adult, that enables adults with basic skill needs to: 
     (i) identify, plan for, and evaluate their own progress 
toward achieving their defined educational and occupational 
goals; 
     (ii) master the basic academic reading, writing, and 
computational skills, as well as the problem-solving, decision 
making, interpersonal effectiveness, and other life and learning 
skills they need to function effectively in a changing society; 
     (iii) locate and be able to use the health, governmental, 
and social services and resources they need to improve their own 
and their families' lives; and 
    (iv) continue their education, if they desire, to at least 
the level of secondary school completion, with the ability to 
secure and benefit from continuing education that will enable 
them to become more employable, productive, and responsible 
citizens; 
    (3) plan, coordinate, and develop cooperative agreements 
with community resources to address the needs that the adults 
have for support services, such as transportation, flexible 
course scheduling, convenient class locations, and child care; 
    (4) collaborate with business, industry, labor unions, and 
employment-training agencies, as well as with family and 
occupational education providers, to arrange for resources and 
services through which adults can attain economic 
self-sufficiency; 
    (5) provide sensitive and well trained adult education 
personnel who participate in local, regional, and statewide 
adult basic education staff development events to master 
effective adult learning and teaching techniques; 
    (6) participate in regional adult basic education peer 
program reviews and evaluations; and 
    (7) submit accurate and timely performance and fiscal 
reports. 
    Sec. 20.  Minnesota Statutes 1992, section 124.2713, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY.] To be eligible for community 
education revenue, a district must:  
    (1) operate a community education program that complies 
with section 121.88; and 
    (2) file a certificate of compliance with the commissioner 
of education.  The certificate of compliance shall certify that 
a meeting was held to discuss methods of increasing cooperation 
among the governing boards of each county, city, and township in 
which the district, or any part of the district, is located, and 
that each governing board was sent a written notice of the 
meeting at least 15 working days before the meeting.  The 
failure of a governing board to attend the meeting shall not 
affect the authority of the district to obtain community 
education revenue. 
    Sec. 21.  Minnesota Statutes 1992, section 125.032, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXCEPTIONS.] A person who teaches in a community 
education program which qualifies for aid pursuant to section 
124.26 shall continue to meet licensure requirements as a 
teacher.  A person who teaches in an early childhood and family 
education program which is offered through a community education 
program and which qualifies for community education aid pursuant 
to section 124.2713 or early childhood and family education aid 
pursuant to section 124.2711 shall continue to meet licensure 
requirements as a teacher.  A person who teaches in a community 
education course which is offered for credit for graduation to 
persons under 18 years of age shall continue to meet licensure 
requirements as a teacher.  A person who teaches a driver 
training course which is offered through a community education 
program to persons under 18 years of age shall be licensed by 
the board of teaching or be subject to section 171.35.  A 
license which is required for an instructor in a community 
education program pursuant to this subdivision shall not be 
construed to bring an individual within the definition of a 
teacher for purposes of section 125.12, subdivision 1, or 
125.17, subdivision 1, clause (a).  
    Sec. 22.  Minnesota Statutes 1992, section 125.12, 
subdivision 3b, is amended to read: 
    Subd. 3b.  [APPLICABILITY PEER REVIEW FOR PROBATIONARY 
TEACHERS.] Subdivision 3a does not apply to a school district 
that has formally adopted A school board and an exclusive 
representative of the teachers in the district shall develop a 
probationary teacher peer review process that has been mutually 
agreed upon by the exclusive representative of the teachers in 
the district and the school board through joint agreement. 
    Sec. 23.  Minnesota Statutes 1992, section 125.12, 
subdivision 4b, is amended to read: 
    Subd. 4b.  [APPLICABILITY PEER REVIEW FOR CONTINUING 
CONTRACT TEACHERS.] Subdivision 4a does not apply to a school 
district that has formally adopted A school board and an 
exclusive representative of the teachers in the district shall 
develop a peer review process for continuing contract 
teachers that has been mutually agreed upon by the exclusive 
representative of the teachers in the district and the school 
board through joint agreement. 
    Sec. 24.  Minnesota Statutes 1992, section 125.17, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [APPLICABILITY PEER REVIEW FOR PROBATIONARY 
TEACHERS.] Subdivision 2a does not apply to a school district 
that has formally adopted A school board and an exclusive 
representative of the teachers in the district shall develop a 
probationary teacher peer review process that has been mutually 
agreed upon by the exclusive representative of the teachers in 
the district and the school board through joint agreement. 
    Sec. 25.  Minnesota Statutes 1992, section 125.17, 
subdivision 3b, is amended to read: 
    Subd. 3b.  [APPLICABILITY PEER REVIEW FOR CONTINUING 
CONTRACT TEACHERS.] Subdivision 3a does not apply to a school 
district that has formally adopted A school board and an 
exclusive representative of the teachers in the district shall 
develop a peer review process for nonprobationary teachers that 
has been mutually agreed upon by the exclusive representative of 
the teachers in the district and the school board through joint 
agreement. 
    Sec. 26.  [125.706] [PREPARATION TIME.] 
    Beginning with agreements effective July 1, 1995, and 
thereafter, all collective bargaining agreements for teachers 
provided for under Minnesota Statutes, chapter 179A, must 
include provisions for preparation time or a provision 
indicating that the parties to the agreement chose not to 
include preparation time in the contract. 
    If the parties cannot agree on preparation time the 
following provision shall apply and be incorporated as part of 
the agreement:  "Within the student day for every 25 minutes of 
instructional time, a minimum of five additional minutes of 
preparation time shall be provided to each licensed teacher.  
Preparation time shall be provided in one or two uninterrupted 
blocks during the student day.  Exceptions to this may be made 
by mutual agreement between the district and the exclusive 
representative of the teachers. 
    Sec. 27.  [125.80] [TEACHER LUNCH PERIOD.] 
    Each teacher shall be provided with a duty-free lunch 
period, scheduled according to school board policy or negotiated 
agreement. 
    Sec. 28.  [126.681] [EVALUATION OF PUPIL GROWTH AND 
PROGRESS; PERMANENT RECORDS.] 
    Each school district shall provide a testing program for 
the purpose of measuring pupil growth and for curriculum 
evaluation, as well as a system for grading and making reports 
to parents.  Each district shall develop an appropriate program 
of pupil progress and promotion for its elementary, middle, and 
secondary schools.  Each district shall keep accurate and 
complete individual, permanent, cumulative personal records for 
all pupils. 
    Sec. 29.  [126.699] [PARENTAL CURRICULUM REVIEW.] 
    Each school district shall have a procedure for a parent, 
guardian, or an adult student, 18 years of age or older, to 
review the content of the instructional materials to be provided 
to a minor child or to an adult student and, if the parent, 
guardian, or adult student objects to the content, to make 
reasonable arrangements with school personnel for alternative 
instruction.  Alternative instruction may be provided by the 
parent, guardian, or adult student if the alternative 
instruction, if any, offered by the school board does not meet 
the concerns of the parent, guardian, or adult student.  The 
school board is not required to pay for the costs of alternative 
instruction provided by a parent, guardian, or adult student.  
School personnel may not impose an academic or other penalty 
upon a student merely for arranging alternative instruction 
under this section.  School personnel may evaluate and assess 
the quality of the student's work. 
    Sec. 30.  Minnesota Statutes 1992, section 144.29, is 
amended to read: 
    144.29 [HEALTH RECORDS; CHILDREN OF SCHOOL AGE.] 
    It shall be the duty of every school nurse, school 
physician, school attendance officer, superintendent of schools, 
principal, teacher, and of the persons charged with the duty of 
compiling and keeping the school census records, to cause a 
permanent public health record to be kept for each child of 
school age.  Such record shall be kept in such form that it may 
be transferred with the child to any school which the child 
shall attend within the state and transferred to the 
commissioner when the child ceases to attend school.  It shall 
contain a record of such health matters as shall be prescribed 
by the commissioner, and of all mental and physical defects and 
handicaps which might permanently cripple or handicap the 
child.  Nothing in sections 144.29 to 144.32 shall be construed 
to require any child whose parent or guardian objects in writing 
thereto to undergo a physical or medical examination or 
treatment.  A copy shall be forwarded to the proper department 
of any state to which the child shall remove.  Each district 
shall assign a teacher, school nurse, or other professional 
person to review, at the beginning of each school year, the 
health record of all pupils under the assignee's direction.  
Growth, results of vision and hearing screening, and findings 
obtained from health assessments must be entered periodically on 
the pupil's health record. 
     Sec. 31.  [ENVIRONMENTAL EDUCATION.] 
    The advisory board established in Minnesota Statutes, 
section 126A.02, shall advise the commissioner of education on 
development of a results-oriented graduation rule. 
    Sec. 32.  [REPEALER.] 
    (a) Minnesota Statutes 1992, sections 120.095; 120.101, 
subdivision 5a; 120.75, subdivision 2; 120.80, subdivision 2; 
121.11, subdivisions 6 and 13; 121.165; 121.19; 121.49; 121.883; 
121.90; 121.901; 121.902; 121.904, subdivisions 5, 6, 8, 9, 10, 
11a, and 11c; 121.908, subdivision 4; 121.9121, subdivisions 3 
and 5; 121.931, subdivisions 6, 6a, 7, and 8; 121.934; 121.936 
subdivisions 1, 2, and 3; 121.937; 121.94; 121.941; 121.942; 
121.943; 123.33, subdivisions 10, 14, 15, and 16; 123.35, 
subdivision 14; 123.352; 123.36, subdivisions 2, 3, 4, 4a, 6, 8, 
9, and 12; 123.40, subdivisions 4 and 6; 123.61; 123.67; 
123.709; 123.744; 124.615; 124.62; 124.64; 124.645; 124.67; 
124.68; 124.69; 124.79; 125.12, subdivisions 3a and 4a; 125.17, 
subdivisions 2a and 3a; 126.09; 126.111; 126.112; 126.20, 
subdivision 4; 126.24; and 126.268, are repealed. 
    (b) Minnesota Statutes 1992, section 121.11, subdivision 
15, is repealed. 
    (c) Minnesota Statutes 1992, sections 120.101, subdivision 
5b; 121.11, subdivision 16; 121.585, subdivision 3; 124.19, 
subdivisions 1, 1b, 6, and 7; 126.02; 126.025; 126.031; 126.06; 
126.08; 126.12, subdivision 2; 126.662; 126.663; 126.664; 
126.665; 126.666; 126.67; 126.68; 126A.01; 126A.02; 126A.04; 
126A.05; 126A.07; 126A.08; 126A.09; 126A.10; 126A.11; and 
126A.12, are repealed. 

                             MINNESOTA RULES
    Sec. 33.  [SCHOOL BUS SAFETY TASK FORCE.] 
    Subdivision 1.  [MEMBERSHIP.] The school bus safety task 
force consists of 15 members appointed jointly by the 
commissioners of education and public safety.  The membership 
shall include a representative of each department, a student 
school bus rider, a parent of a school-age child using school 
transportation, a representative of the Minnesota state patrol, 
school transportation managers, school board members, a 
representative of a public transit authority not affiliated with 
schools, and school bus mechanics, manufacturers, or other 
school bus industry representatives.  The commissioners of 
education and public safety shall call the first meeting, at 
which a chair shall be elected. 
    Subd. 2.  [DUTIES.] The task force established by 
subdivision 1 shall review state and federal statutes and 
administrative rules relating to school bus design and safety 
and make recommendations to eliminate duplication and otherwise 
streamline the regulatory scheme.  The task force shall examine 
the feasibility of converting current administrative rules 
governing school bus design to guidelines administered either by 
the department of education or public safety. 
    Subd. 3.  [REPORT.] The task force shall report to the 
chairs of the senate and house education committees its findings 
and recommendations by January 15, 1994. 
    Sec. 34.  [OUTCOME-BASED LICENSURE OF TEACHERS AND 
ADMINISTRATORS.] 
    Rules adopted by the state board of education and the board 
of teaching regarding licensure of teachers or administrators 
shall, to the extent possible, be outcome-based and clearly 
related to the results-oriented graduation rule to be 
implemented starting with students entering high school in 
1996.  The boards shall develop outcomes relating to flexible 
school-based organizational structures and inclusive 
instructional strategies.  Each board shall report to the 
legislature on the status of its licensure rules by February 15, 
1995.  The reports shall explain how the rules are outcome-based 
and how they relate to learner outcomes for students. 
    Sec. 35.  [DRIVER EDUCATION; COOPERATION WITH DEPARTMENT OF 
PUBLIC SAFETY.] 
     The state board shall cooperate with the 
 department of public safety to develop a single set of rules for 
driver education programs, whether public, private, or 
commercial. 
    Sec. 36.  [VOCATIONAL PROGRAM STANDARDS.] 
    By August 1, 1996, the department of education shall 
develop program standards to replace rules in chapter 3505 
governing approval of secondary vocational programs, including 
community-based cooperative vocational programs. 
    Sec. 37.  [RULE CHANGE.] 
    The state board shall amend Minnesota Rules, part 
3505.2400, to delete the requirement of annual submission of 
approval requests for secondary vocational education programs.  
The amendment is not subject to the rulemaking provisions of 
chapter 14, but the state board must comply with section 14.38, 
subdivision 7, in adopting the amendment. 
    Sec. 38.  [ARTS SCHOOL DEADLINE.] 
    The Minnesota center for arts education may extend the 
deadline specified in rule for admission to its high school if 
the school's enrollment is less than the maximum of 300. 
    Sec. 39.  [REPEALER.] 
    (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 
and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 
3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 
3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 
3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 
3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 
3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 
3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 
3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 
3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 
3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 
3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 
3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 
5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 
3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 
3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 
3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 
3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 
3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 
3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 
3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 
3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 
3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 
3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 
3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 
3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 
8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 
    (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 
3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 
3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 
3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 
3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 
3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 
3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 
3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 
3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 
3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 
3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 
3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 
3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 
3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 
3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 
3520.5710; 3520.5900; 3520.5910; 3520.5920; 3530.6500; 
3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 
3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 
3530.7600; 3530.7700; and 3530.7800, are repealed. 
    (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0100; 
3510.0200; 3510.0300; 3510.0400; 3510.0500; 3510.0600; 
3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 
3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 
3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 
3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 
3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8100; 
3510.8200; 3510.8300; 3510.8400; 3510.8500; 3510.8600; 
3510.8700; 3510.9000; 3510.9100; chapters 3515, 3517.0100; 
3517.0120; 3517.3150; 3517.3170; 3517.3420; 3517.3450; 
3517.3500; 3517.3650; 3517.4000; 3517.4100; 3517.4200; 
3517.8500; 3517.8600;, and 3560, are repealed. 
    (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 
3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 
3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 
3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 
3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 
3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 
3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 
3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 
3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 
8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 
8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 
8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 
8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 
8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 
8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 
8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 
8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 
8700.6310; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 
8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 
8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 
8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 
8700.8160; 8700.8170; 8700.8180; 8700.8190; 8750.0200; 
8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 
8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 
8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 
8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 
8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 
8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 
8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 
8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 
8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 
8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 
8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 
8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 
8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 
8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 
8750.2140; 8750.4000; 8750.4100; 8750.4200; 8750.9000; 
8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 
8750.9600; and 8750.9700, are repealed. 
    Sec. 40.  [LEGISLATIVE INTENT.] 
    The legislature does not intend, by the repeal of the rules 
listed in section 39, to ratify or endorse the parts of the 
rules not repealed. 
    Sec. 41.  [EFFECTIVE DATE.] 
    Sections 22 to 25 are effective July 1, 1995. 
    Section 32, paragraph (b), is effective July 1, 1995.  
Section 32, paragraph (c), is effective August 1, 1996. 
    Section 39, paragraph (b), is effective August 1, 1994.  
Section 39, paragraph (c), is effective July 1, 1995.  Section 
39, paragraph (d), is effective August 1, 1996. 

                               ARTICLE 13 
REALIGNMENT OF RESPONSIBILITIES 
    Section 1.  Minnesota Statutes 1992, section 120.062, 
subdivision 5, is amended to read: 
    Subd. 5.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
subdivision applies to a transfer into or out of a district that 
has a desegregation plan approved by the state board 
commissioner of education.  
    (b) An application to transfer may be submitted at any time 
for enrollment beginning at any time. 
    (c) The parent or guardian of a pupil who is a resident of 
a district that has a desegregation plan must submit an 
application to the resident district.  If the district accepts 
the application, it must forward the application to the 
nonresident district. 
    (d) The parent or guardian of a pupil who applies for 
enrollment in a nonresident district that has a desegregation 
plan must submit an application to the nonresident district.  
    (e) Each district must accept or reject an application it 
receives and notify the parent or guardian in writing within 30 
calendar days of receiving the application.  A notification of 
acceptance must include the date enrollment can begin. 
    (f) If an application is rejected, the district must state 
the reason for rejection in the notification.  If a district 
that has a desegregation plan rejects an application for a 
reason related to the desegregation plan, the district must 
state with specificity how acceptance of the application would 
result in noncompliance with state board rules with respect to 
the school or program for which application was made.  
     (g) If an application is accepted, the parent or guardian 
must notify the nonresident district in writing within 15 
calendar days of receiving the acceptance whether the pupil 
intends to enroll in the nonresident district.  Notice of 
intention to enroll obligates the pupil to enroll in the 
nonresident district, unless the school boards of the resident 
and nonresident districts agree otherwise.  If a parent or 
guardian does not notify the nonresident district, the pupil may 
not enroll in that nonresident district at that time, unless the 
school boards of the resident and nonresident district agree 
otherwise. 
     (h) Within 15 calendar days of receiving the notice from 
the parent or guardian, the nonresident district shall notify 
the resident district in writing of the pupil's intention to 
enroll in the nonresident district.  
     (i) A pupil enrolled in a nonresident district under this 
subdivision is not required to make annual or periodic 
application for enrollment but may remain enrolled in the same 
district.  A pupil may transfer to the resident district at any 
time.  
    (j) A pupil enrolled in a nonresident district and applying 
to transfer into or out of a district that has a desegregation 
plan must follow the procedures of this subdivision.  For the 
purposes of this type of transfer, "resident district" means the 
nonresident district in which the pupil is enrolled at the time 
of application.  
    (k) A district that has a desegregation plan approved by 
the state board of education must accept or reject each 
individual application in a manner that will enable compliance 
with its desegregation plan. 
    Sec. 2.  Minnesota Statutes 1992, section 120.0751, is 
amended to read: 
    120.0751 [STATE BOARD COMMISSIONER OF EDUCATION; ENROLLMENT 
EXCEPTIONS.] 
    Subdivision 1.  The state board of education commissioner 
may permit a pupil to enroll in a school district of which the 
pupil is not a resident under this section.  
    Subd. 2.  The pupil or the pupil's parent or guardian shall 
make application to the state board commissioner, explaining the 
particular circumstances which make the nonresident district the 
appropriate district of attendance for the pupil.  The 
application must be signed by the pupil's parent or guardian and 
the superintendent of the nonresident district.  
    Subd. 3.  [CRITERIA FOR APPROVAL.] In approving or 
disapproving the application the state board commissioner shall 
consider the following:  
    (a) if the circumstances of the pupil are similar or 
analogous to the exceptions permitted by section 120.075, 
whether attending school in the district of residence creates a 
particular hardship for the pupil; or 
    (b) if the pupil has been continuously enrolled for at 
least two years in a district of which the pupil was not a 
resident because of an error made in good faith about the actual 
district of residence, whether attending school in the district 
of residence creates a particular hardship for the pupil.  If 
the board commissioner finds that a good faith error was made 
and that attending school in the district of residence would 
create a particular hardship for the siblings of that pupil or 
foster children of that pupil's parents, it the commissioner may 
separately approve an application for any or all of the siblings 
of the pupil who are related by blood, adoption, or marriage and 
for foster children of the pupil's parents.  
    Subd. 4.  The state board of education commissioner shall 
render its decision in each case within 60 days of receiving the 
application in subdivision 2.  
    Subd. 5.  The department of education commissioner shall 
provide the forms required by subdivision 2.  The state board of 
education and shall adopt the procedures necessary to implement 
this section. 
    Subd. 6.  [AID.] General education aid, capital expenditure 
facilities aid, capital expenditure equipment aid, and 
transportation aid for pupils covered by programs under this 
section must be paid according to sections 124A.036, subdivision 
5, 124.245, subdivision 6, and 124.225, subdivision 8l.  
    Sec. 3.  Minnesota Statutes 1992, section 120.75, is 
amended to read: 
    120.75 [HEARING.] 
    Subdivision 1.  Prior to the initiation of any fee not 
authorized or prohibited by sections 120.73 and 120.74, the 
local school board shall hold a public hearing within the 
district upon three weeks published notice in the district's 
official newspaper.  The local school board shall notify the 
state board commissioner of any fee it proposes to initiate 
under this section.  If within 45 days of this notification, the 
state board commissioner does not disapprove the proposed fee, 
the local school board may initiate the proposed fee.  
    Subd. 2.  The state board commissioner pursuant to the 
administrative procedure act, sections 14.001 to 14.69, and 
consistent with the general policy of section 120.72 shall have 
the power to specify further authorized and prohibited fees and 
to adopt rules for the purposes of sections 120.71 to 120.76.  
    Sec. 4.  Minnesota Statutes 1992, section 121.15, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONDEMNATION OF SCHOOL BUILDINGS.] The 
commissioner may condemn school buildings and sites that the 
state board of education determines are determined to be unfit 
or unsafe for that use.  
    Sec. 5.  Minnesota Statutes 1992, section 121.201, 
subdivision 1, is amended to read: 
    Subdivision 1.  [RESPONSIBILITY OF BOARD COMMISSIONER.] The 
state board of education commissioner shall coordinate and may 
pay for support services for hearing impaired persons to assure 
access to educational opportunities.  Services may be provided 
to adult students who are hearing impaired and (a) have been 
denied access to educational opportunities because of the lack 
of support services or (b) are presently enrolled or (c) are 
contemplating enrollment in an educational program and would 
benefit from support services.  The state board commissioner 
shall also be responsible for conducting in-service training for 
public and private agencies regarding the needs of hearing 
impaired persons in the adult education system.  
    Sec. 6.  Minnesota Statutes 1992, section 121.904, 
subdivision 14, is amended to read: 
    Subd. 14.  The state board commissioner shall specify the 
fiscal year or years to which the revenue from any aid or tax 
levy is applicable if Minnesota Statutes do not so specify. 
    Sec. 7.  Minnesota Statutes 1992, section 121.9121, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STATE BOARD COMMISSIONER'S AUTHORIZATION.] 
The state board commissioner may authorize a board to transfer 
money from any fund or account other than the debt redemption 
fund to another fund or account according to this section. 
    Sec. 8.  Minnesota Statutes 1992, section 121.9121, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION.] A board requesting authority to 
transfer money shall apply to the state board commissioner 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. 
    Sec. 9.  Minnesota Statutes 1992, section 121.9121, 
subdivision 4, is amended to read: 
    Subd. 4.  [APPROVAL STANDARD.] The state board commissioner 
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. 
    Sec. 10.  Minnesota Statutes 1992, section 121.935, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES.] Every regional management information 
center shall: 
    (a) assist its affiliated districts in complying with the 
reporting requirements of the annual data acquisition calendar 
and the rules of the state board of education; 
    (b) respond within 15 calendar days to requests from the 
department for district information provided to the region for 
state reporting of information, based on the data elements in 
the data element dictionary; 
    (c) operate financial management information systems 
consistent with the uniform financial accounting and reporting 
standards adopted by the state board commissioner pursuant to 
sections 121.90 to 121.917; 
    (d) make available to districts the opportunity to 
participate fully in all the subsystems of ESV-IS; 
    (e) develop and maintain a plan to provide services during 
a system failure or a disaster; 
    (f) comply with the requirement in section 121.908, 
subdivision 2, on behalf of districts affiliated with it; and 
    (g) operate fixed assets property management information 
systems consistent with the uniform property accounting and 
reporting standards adopted by the state board commissioner. 
    Sec. 11.  Minnesota Statutes 1992, section 121.935, 
subdivision 5, is amended to read: 
    Subd. 5.  [REGIONAL SUBSIDIES.] In any year when a regional 
management information center's annual plan and budget are 
approved pursuant to subdivision 3, the center shall receive a 
regional reporting subsidy grant from the department of 
education.  The subsidy grant shall be in the amount allocated 
by the state board commissioner in the process of approving the 
annual budgets of the regional management information centers 
pursuant to subdivision 3.  The amounts of the subsidy grants 
and an explanation of the allocation decisions shall be filed by 
the state board commissioner with the education committees of 
the legislature.  
    When determining the amount of a subsidy grant, the state 
board commissioner shall consider the following factors:  
    (a) the number of students in districts affiliated with the 
center; 
    (b) the number of districts affiliated with the center; 
    (c) fixed and overhead costs to be incurred in operating 
the regional center, the finance subsystem, the 
payroll/personnel subsystem, and the student support subsystem; 
    (d) variable costs to be incurred that differ in proportion 
to the number of districts served and the number of subsystems 
implemented for those districts; 
    (e) services provided to districts that enable the 
districts to meet state reporting requirements; 
    (f) the cost of meeting the reporting requirements of 
subdivision 2 for districts using approved alternative 
management information systems; and 
    (g) the number of districts affiliated with a regional 
management information center in relation to the geographic area 
occupied by those districts.  
    Sec. 12.  Minnesota Statutes 1992, section 121.936, 
subdivision 4, is amended to read: 
    Subd. 4.  [ALTERNATIVE SYSTEMS; STATE BOARD COMMISSIONER.] 
Upon approval of the proposal by the state board commissioner 
the district may proceed in accordance with its approved 
proposal.  Except as provided in section 121.931, subdivision 5, 
an alternative system approved pursuant to this subdivision 
shall be developed and purchased at the expense of the 
district.  Notwithstanding any law to the contrary, when an 
alternative system has been approved by the state board 
commissioner, another district may use the system without state 
board approval of the commissioner.  A district which has 
submitted a proposal for an alternative system which has been 
disapproved may not submit another proposal for that fiscal 
year, but it may submit a proposal for the subsequent fiscal 
year. 
    Sec. 13.  Minnesota Statutes 1992, section 121.936 
subdivision 4a, is amended to read: 
    Subd. 4a.  The department of education commissioner shall 
develop and implement an alternative reporting system for 
submission of financial data in summary form.  This system shall 
accommodate the use of a microcomputer finance system to be 
developed and maintained by the department of education 
commissioner.  The alternative reporting system must comply with 
sections 121.90 to 121.917.  The provisions of this subdivision 
shall not be construed to require the department to purchase 
computer hardware nor to prohibit the department from purchasing 
services from any regional management information center or the 
Minnesota educational computing consortium.  
    Sec. 14.  Minnesota Statutes 1992, section 122.241, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMBINATION REQUIREMENTS.] Combining districts 
must be contiguous and meet one of the following requirements at 
the time of combination:  
    (1) at least two districts with at least 400 resident 
pupils enrolled in grades 7 through 12 in the combined district 
and projections, approved by the department of education, of 
enrollment at least at that level for five years; 
    (2) at least two districts if either: 
    (i) both of the districts qualify for secondary sparsity 
revenue under section 124A.22, subdivision 6, and have an 
average isolation index over 23; or 
    (ii) the combined district qualifies for secondary sparsity 
revenue; 
    (3) at least three districts with fewer than 400 resident 
pupils enrolled in grades 7 through 12 in the combined district; 
or 
    (4) at least two districts with fewer than 400 resident 
pupils enrolled in grades 7 through 12 in the combined district 
if either district is located on the border of the state. 
    A combination under clause (2), (3), or (4) must be 
approved by the state board commissioner of education.  The 
state board commissioner shall disapprove a combination under 
clause (2), (3), or (4) if the combination is educationally 
unsound or would not reasonably enable the districts to fulfill 
statutory and rule requirements. 
    Sec. 15.  Minnesota Statutes 1992, section 122.243, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STATE BOARD COMMISSIONER APPROVAL.] Before 
submitting the question of combining school districts to the 
voters at a referendum, the cooperating districts shall submit 
the proposed combination to the state board commissioner of 
education.  The state board commissioner shall determine the 
date for submission and may require any information it 
determines necessary.  The state board commissioner shall 
disapprove the proposed combination if it is educationally 
unsound, will not reasonably enable the combined district to 
fulfill statutory and rule requirements, or if the plan or 
modifications are incomplete.  If disapproved by the state board 
commissioner, the referendum shall be postponed, but not 
canceled, by the school boards. 
    Sec. 16.  Minnesota Statutes 1992, section 122.247, 
subdivision 3, is amended to read: 
    Subd. 3.  [TRANSITIONAL LEVY.] The board of the combined 
district, or the boards of combining districts that have 
received voter approval for the combination under section 
122.243, subdivision 2, may levy for the expenses of 
negotiation, administrative expenses directly related to the 
transition from cooperation to combination, and the cost of 
necessary new athletic and music uniforms.  The board or boards 
may levy this amount over three or fewer years.  All expenses 
must be approved by the state board commissioner of education.  
    Sec. 17.  Minnesota Statutes 1992, section 123.35, 
subdivision 17, is amended to read: 
    Subd. 17.  [SCHOOL HEALTH SERVICES.] (a) Every school board 
must provide services to promote the health of its pupils. 
    (b) The board of a district with 1,000 pupils or more in 
average daily membership in early childhood family education, 
preschool handicapped, elementary, and secondary programs must 
comply with the requirements of this paragraph.  It may use one 
or a combination of the following methods: 
    (1) employ personnel, including at least one full-time 
equivalent licensed school nurse or continue to employ a 
registered nurse not yet certified as a public health nurse as 
defined in section 145A.02, subdivision 18, who is enrolled in a 
program that would lead to certification within four years of 
August 1, 1988; 
    (2) contract with a public or private health organization 
or another public agency for personnel during the regular school 
year, determined appropriate by the board, who are currently 
licensed under chapter 148 and who are certified public health 
nurses; or 
    (3) enter into another arrangement approved by the state 
board of education commissioner.  
    Sec. 18.  Minnesota Statutes 1992, section 123.351, 
subdivision 6, is amended to read: 
    Subd. 6.  [STATE BOARD COMMISSIONER APPROVAL.] Prior to the 
commencement of the operation of any center the agreement 
entered into by participating districts shall be approved by the 
state board of education commissioner. 
    Sec. 19.  Minnesota Statutes 1992, section 123.351, 
subdivision 8, is amended to read: 
    Subd. 8.  [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 
approval by majority vote of a school board, of the center 
board, and of the state board of education commissioner, an 
adjoining school district may become a member in the center and 
be governed by the provisions of this section and the agreement 
in effect. 
    Any participating district may withdraw from the center and 
from the agreement in effect by a majority vote of the full 
board membership of the participating school district desiring 
withdrawal and upon compliance with provisions in the agreement 
establishing the center.  Upon receipt of the withdrawal 
resolution reciting the necessary facts, the center board shall 
file a certified copy with the county auditors of the counties 
affected.  The withdrawal shall become effective at the end of 
the next following school year but the withdrawal shall not 
affect the continued liability of the withdrawing district for 
bonded indebtedness it incurred prior to the effective 
withdrawal date. 
    Sec. 20.  Minnesota Statutes 1992, section 123.351, 
subdivision 9, is amended to read: 
    Subd. 9.  [EXISTING CENTERS.] Centers operating pursuant to 
section 471.59 which have been approved by the state board of 
education prior to August 1, 1974 shall be subject to its 
provisions except subdivision 1.  Any changes in center 
agreements necessary to comply with this section shall be 
completed within 12 months after August 1, 1974 and filed with 
the state board commissioner by the administrator of each center.
Centers operating pursuant to Laws 1967, chapter 822, as 
amended, Laws 1969, chapter 775, as amended, and Laws 1969, 
chapter 1060, as amended shall not be subject to the provisions 
of this section. 
    Sec. 21.  Minnesota Statutes 1992, section 123.3513, is 
amended to read: 
    123.3513 [ADVANCED ACADEMIC CREDIT.] 
    A school district shall grant academic credit to a pupil 
attending an accelerated or advanced academic course offered by 
a higher education institution or a nonprofit public agency 
other than the district, if the pupil successfully completes the 
course attended and passes an examination approved by the 
district.  If no comparable course is offered by the district, 
the state board of education commissioner shall determine the 
number of credits which shall be granted to a pupil who 
successfully completes and passes the course.  If a comparable 
course 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, the pupil may appeal 
the school board's decision to the state board of education 
commissioner.  The state board's commissioner'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 
class and credits granted shall be included in the pupil's 
secondary school record.  
    Sec. 22.  Minnesota Statutes 1992, section 123.3514, 
subdivision 5, is amended to read: 
    Subd. 5.  [CREDITS.] A pupil may enroll in a course under 
this section for either secondary credit or post-secondary 
credit.  At the time a pupil enrolls in a course, the pupil 
shall designate whether the course is for secondary or 
post-secondary credit.  A pupil taking several courses may 
designate some for secondary credit and some for post-secondary 
credit.  A pupil must not audit a course under this section. 
    A school district shall grant academic credit to a pupil 
enrolled in a course for secondary credit if the pupil 
successfully completes the course.  Nine quarter or six semester 
college credits equal at least one full year of high school 
credit.  Fewer college credits may be prorated.  A school 
district shall also grant academic credit to a pupil enrolled in 
a course for post-secondary credit if secondary credit is 
requested by a pupil.  If no comparable course is offered by the 
district, the district shall, as soon as possible, notify the 
state board of education commissioner, which shall determine the 
number of credits that shall be granted to a pupil who 
successfully completes a course.  If a comparable course 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, the pupil may appeal 
the school board's decision to the state board of education 
commissioner.  The state board's commissioner's decision 
regarding the number of credits shall be final.  
     The secondary 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 and secondary credits granted shall be included in 
the pupil's secondary school record.  A pupil must provide the 
school with a copy of the pupil's grade in each course taken for 
secondary credit under this section.  Upon the request of a 
pupil, the pupil's secondary school record shall also include 
evidence of successful completion and credits granted for a 
course taken for post-secondary credit.  In either case, the 
record shall indicate that the credits were earned at a 
post-secondary institution. 
     If a pupil enrolls in a post-secondary institution after 
leaving secondary school, the post-secondary institution shall 
award post-secondary credit for any course successfully 
completed for secondary credit at that institution.  Other 
post-secondary institutions may award, after a pupil leaves 
secondary school, post-secondary credit for any courses 
successfully completed under this section.  An institution may 
not charge a pupil for the award of credit.  
    Sec. 23.  Minnesota Statutes 1992, section 123.3514, 
subdivision 8, is amended to read: 
    Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
enrolled in a course for secondary credit 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 commissioner 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 reimbursement may not exceed the pupil's actual cost of 
transportation or 15 cents per mile traveled, whichever is 
less.  Reimbursement may not be paid for more than 250 miles per 
week.  However, if the nearest post-secondary institution is 
more than 25 miles from the pupil's resident secondary school, 
the weekly reimbursement may not exceed the reimbursement rate 
per mile times the actual distance between the secondary school 
and the nearest post-secondary institution times ten.  The state 
shall pay aid to the district according to the guidelines 
established under this subdivision.  Chapter 14 does not apply 
to the guidelines. 
    Sec. 24.  Minnesota Statutes 1992, section 123.58, 
subdivision 6, is amended to read: 
    Subd. 6.  [DUTIES AND POWERS OF ECSU BOARD OF DIRECTORS.] 
The board of directors shall have authority to maintain and 
operate an ECSU.  Subject to the availability of necessary 
resources, the powers and duties of this board shall include the 
following: 
    (a) The board of directors shall submit within 90 days 
after the filing of the initial petition with the state board of 
education and by June 1 of each year thereafter to the state 
board of education commissioner and to each participating school 
district an annual plan which describes the objectives and 
procedures to be implemented in assisting in resolution of the 
educational needs of the ECSU.  In formulating the plan the 
board is encouraged to consider:  (1) the number of dropouts of 
school age in the ECSU area and the reasons for the dropouts; 
(2) existing programs within participating districts for 
dropouts and potential dropouts; (3) existing programs of the 
ECSU for dropouts and potential dropouts and (4) program needs 
of dropouts and potential dropouts in the area served by the 
ECSU.  
    (b) The ECSU board of directors may provide adequate 
office, service center, and administrative facilities by lease, 
purchase, gift, or otherwise, subject to the review of the state 
board of education commissioner as to the adequacy of the 
facilities proposed. 
    (c) The ECSU board of directors may employ a central 
administrative staff and other personnel as necessary to provide 
and support the agreed upon programs and services.  The board 
may discharge staff and personnel pursuant to provisions of law 
applicable to independent school districts.  ECSU staff and 
personnel may participate in retirement programs and any other 
programs available to public school staff and personnel.  
    (d) The ECSU board of directors may appoint special 
advisory committees composed of superintendents, central office 
personnel, building principals, teachers, parents and lay 
persons.  
    (e) The ECSU board of directors may employ service area 
personnel pursuant to licensure standards developed by the state 
board of education and the board of teaching.  
    (f) The ECSU board of directors may enter into contracts 
with school boards of local districts including school districts 
outside the ECSU area.  
    (g) The ECSU board of directors may enter into contracts 
with other public and private agencies and institutions which 
may include, but are not limited to, contracts with Minnesota 
institutions of higher education to provide administrative staff 
and other personnel as necessary to furnish and support the 
agreed upon programs and services.  
    (h) The ECSU board of directors shall exercise all powers 
and carry out all duties delegated to it by participating local 
school districts under provisions of the ECSU bylaws.  The ECSU 
board of directors shall be governed, when not otherwise 
provided, by the provisions of law applicable to independent 
school districts of the state. 
    (i) The ECSU board of directors shall submit an annual 
evaluation report of the effectiveness of programs and services 
to the school districts and nonpublic school administrative 
units within the ECSU and the state board of education 
commissioner by September 1 of each year following the school 
year in which the program and services were provided.  
    (j) The ECSU board is encouraged to establish cooperative, 
working relationships with post-secondary educational 
institutions in the state.  
    Sec. 25.  Minnesota Statutes 1992, section 123.58, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPOINTMENT OF AN ADVISORY COUNCIL.] There shall 
be an advisory council selected to give advice and counsel to 
the ECSU board of directors.  This council shall be composed of 
superintendents, central office personnel, principals, teachers, 
parents, and lay persons.  Nonpublic school administrative units 
are encouraged to participate on the council to the extent 
allowed by law.  A plan detailing procedures for selection of 
membership in this council shall be submitted by the ECSU board 
of directors to the state board of education commissioner. 
    Sec. 26.  Minnesota Statutes 1992, section 123.58, 
subdivision 8, is amended to read: 
    Subd. 8.  [EDUCATIONAL PROGRAMS AND SERVICES.] Pursuant to 
subdivision 6, and rules of the state board of education, the 
board of directors of each operational ECSU shall submit 
annually a plan to the public school districts within the ECSU, 
the nonpublic school administrative units, and the state board 
of education commissioner.  The plan shall identify the programs 
and services which are suggested for implementation by the ECSU 
during the following school year and shall contain components of 
long range planning determined by the ECSU in cooperation with 
the state board of education commissioner and other appropriate 
agencies.  The state board of education commissioner may review 
and recommend modification of the proposed plan and conduct 
ongoing program reviews.  These programs and services may 
include, but are not limited to, the following areas: 
    (a) Administrative services and purchasing 
    (b) Curriculum development 
    (c) Data processing 
    (d) Educational television 
    (e) Evaluation and research 
    (f) In-service training 
    (g) Media centers 
    (h) Publication and dissemination of materials 
    (i) Pupil personnel services 
    (j) Regional planning, joint use of facilities, and 
flexible and year-round school scheduling 
    (k) Secondary, post-secondary, community, adult, and adult 
vocational education 
    (l) Individualized instruction and services, including 
services for students with special talents and special needs 
    (m) Teacher personnel services 
    (n) Vocational rehabilitation 
    (o) Health, diagnostic, and child development services and 
centers 
    (p) Leadership or direction in early childhood and family 
education 
    (q) Community services 
    (r) Shared time programs. 
    Sec. 27.  Minnesota Statutes 1992, section 123.58, 
subdivision 9, is amended to read: 
    Subd. 9.  [FINANCIAL SUPPORT FOR THE EDUCATIONAL 
COOPERATIVE SERVICE UNITS.] (a) Financial support for ECSU 
programs and services shall be provided by participating local 
school districts and nonpublic school administrative units with 
private, state and federal financial support supplementing as 
available.  The ECSU board of directors may, in each year, for 
the purpose of paying any administrative, planning, operating, 
or capital expenses incurred or to be incurred, assess and 
certify to each participating school district and nonpublic 
school administrative unit its proportionate share of any and 
all expenses.  This share shall be based upon the extent of 
participation by each district or nonpublic school 
administrative unit and shall be in the form of a service fee.  
Each participating district and nonpublic school administrative 
unit shall remit its assessment to the ECSU board as provided in 
the ECSU bylaws.  The assessments shall be paid within the 
maximum levy limitations of each participating district.  No 
participating school district or nonpublic school administrative 
unit shall have any additional liability for the debts or 
obligations of the ECSU except that assessment which has been 
certified as its proportionate share or any other liability the 
school district or nonpublic school administrative unit agrees 
to assume. 
      (b) Any property acquired by the ECSU board is public 
property to be used for essential public and governmental 
purposes which shall be exempt from all taxes and special 
assessments levied by a city, county, state or political 
subdivision thereof.  If the ECSU is dissolved, its property 
must be distributed to the member public school districts at the 
time of the dissolution. 
    (c) A school district or nonpublic school administrative 
unit may elect to withdraw from participation in the ECSU by a 
majority vote of its full board membership and upon compliance 
with the applicable withdrawal provisions of the ECSU 
organizational agreement.  Upon receipt of the withdrawal 
resolution reciting the necessary facts, the ECSU board shall 
file a certified copy with the state board of education 
commissioner.  The withdrawal shall be effective on the June 30 
following receipt by the board of directors of written 
notification of the withdrawal at least six months prior to June 
30.  Notwithstanding the withdrawal, the proportionate share of 
any expenses already certified to the withdrawing school 
district or nonpublic school administrative unit for the ECSU 
shall be paid to the ECSU board. 
    (d) Notwithstanding paragraph (c), if a member school 
district of an education district withdraws from an ECSU to 
comply with subdivision 4, the school district's withdrawal is 
effective on June 30, following receipt by the board of 
directors of the district's written notification. 
    (e) The ECSU is a public corporation and agency and its 
board of directors may make application for, accept and expend 
private, state and federal funds that are available for programs 
of educational benefit approved by the state board of education 
commissioner in accordance with rules adopted by the state board 
of education pursuant to chapter 14.  The state board of 
education commissioner shall not distribute special state aid or 
federal aid directly to an ECSU in lieu of distribution to a 
school district within the ECSU which would otherwise qualify 
for and be entitled to this aid without the consent of the 
school board of that district. 
    (f) The ECSU is a public corporation and agency and as 
such, no earnings or interests of the ECSU may inure to the 
benefit of an individual or private entity. 
    Sec. 28.  Minnesota Statutes 1992, section 123.71, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every school board shall, no later than 
October 1, publish the revenue and expenditure budgets submitted 
to the commissioner of education in accordance with section 
121.908, subdivision 4, for the current year and the actual 
revenues, expenditures, fund balances for the prior year and 
projected fund balances for the current year in a form 
prescribed by the state board of education commissioner after 
consultation with the advisory council on uniform financial 
accounting and reporting standards.  The forms prescribed shall 
be designed so that year to year comparisons of revenue, 
expenditures and fund balances can be made.  These budgets, 
reports of revenue, expenditures and fund balances shall be 
published in a qualified newspaper of general circulation in the 
district. 
    Sec. 29.  Minnesota Statutes 1992, section 123.932, 
subdivision 7, is amended to read: 
    Subd. 7.  "Intermediary service area" means a school 
administrative unit approved by the state board of education 
commissioner, other than a single school district, including but 
not limited to the following:  (a) an educational cooperative 
service unit; (b) a cooperative of two or more school districts; 
(c) learning centers; or (d) an association of schools or school 
districts. 
    Sec. 30.  Minnesota Statutes 1992, section 123.947, is 
amended to read: 
    123.947 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
    (a) The department of education commissioner shall assure 
that textbooks and individualized instructional materials loaned 
to nonpublic school pupils are secular, neutral, nonideological 
and that they are incapable of diversion for religious use.  
    (b) Textbooks and individualized instructional materials 
shall not be used in religious courses, devotional exercises, 
religious training or any other religious activity.  
    (c) Textbooks and individualized instructional materials 
shall be loaned only to individual pupils upon the request of a 
parent or guardian or the pupil on a form designated for this 
use by the department of education commissioner.  The request 
forms shall provide for verification by the parent or guardian 
or pupil that the requested textbooks and individualized 
instructional materials are for the use of the individual pupil 
in connection with a program of instruction in the pupil's 
elementary or secondary school.  
    (d) The servicing school district or the intermediary 
service area shall take adequate measures to ensure an accurate 
and periodic inventory of all textbooks and individualized 
instructional materials loaned to elementary and secondary 
school pupils attending nonpublic schools.  The state board of 
education shall promulgate rules under the provisions of chapter 
14 to terminate the eligibility of any nonpublic school pupil if 
the department of education commissioner determines, after 
notice and opportunity for hearing, that the textbooks or 
individualized instructional materials have been used in a 
manner contrary to the provisions of section 123.932, 
subdivision 1e, 123.933 or this section or any rules promulgated 
by the state board of education. 
    (e) Nothing contained in section 123.932, subdivision 1e, 
123.933 or this section shall be construed to authorize the 
making of any payments to a nonpublic school or its faculty, 
staff or administrators for religious worship or instruction or 
for any other purpose.  
    Sec. 31.  Minnesota Statutes 1992, 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 commissioner, 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 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. 32.  Minnesota Statutes 1992, section 124.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  A copy of the apportionment of the school 
endowment fund shall be furnished by the state board 
commissioner to the commissioner of finance, who thereupon shall 
draw 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. 
    Sec. 33.  Minnesota Statutes 1992, section 124.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state board commissioner 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 commissioner shall not be subject 
to the contract approval procedures of the commissioner of 
administration or to chapter 16A or 16B.  The commissioner of 
education shall adopt internal procedures for administration and 
monitoring of aids and grants. 
    Sec. 34.  Minnesota Statutes 1992, 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 
commissioner, 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. 35.  Minnesota Statutes 1992, section 124.17, 
subdivision 2c, is amended to read: 
    Subd. 2c.  Notwithstanding subdivision 2, in cases when 
school is in session but pupils are prevented from attending for 
more than 15 consecutive school days during the regular school 
year or five consecutive school days during summer school or 
intersession classes of flexible school year programs, because 
of epidemic, calamity, weather, fuel shortage, or other 
justifiable cause, the state board commissioner, upon 
application, may allow the district to continue to count these 
pupils in average daily membership.  A lawful employees' strike 
is not a justifiable cause for purposes of this subdivision. 
    Sec. 36.  Minnesota Statutes 1992, section 124.223, 
subdivision 3, is amended to read: 
    Subd. 3.  [SECONDARY VOCATIONAL CENTERS.] State 
transportation aid is authorized for transportation to and from 
a state board commissioner 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. 
    Sec. 37.  Minnesota Statutes 1992, section 124.2725, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] A school district is 
eligible for cooperation and combination revenue if it has a 
plan approved by the state board of education commissioner 
according to section 122.243.  
    Sec. 38.  Minnesota Statutes 1992, section 124.2725, 
subdivision 13, is amended to read: 
    Subd. 13.  [REVENUE FOR EXTENDED COOPERATION.] If the state 
board commissioner disapproves of the plan according to section 
122.243, subdivision 1, or if a second referendum fails under 
section 122.243, subdivision 2, cooperation and combination 
revenue shall equal $50 times the actual pupil units.  
Cooperation and combination aid must be reduced by an amount 
equal to the aid paid under subdivision 6 plus the difference 
between the aid paid under subdivision 5 for the first two years 
of the agreement and the aid that would have been paid if the 
revenue had been $50 times the actual pupil units.  If the aid 
is insufficient to recover the entire amount, the department of 
education commissioner shall reduce other aids due the district 
to recover the entire amount.  The cooperation and combination 
levy shall be reduced by an amount equal to the difference 
between the levy for the first two years of the agreement and 
the levy that would have been authorized if the revenue had been 
$50 times the actual pupil units.  A district that receives 
revenue under this subdivision may not also receive revenue 
according to sections 124.2721 and 124.575. 
    Sec. 39.  Minnesota Statutes 1992, section 124.276, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATE BOARD COMMISSIONER APPROVAL.] The state 
board commissioner may approve plans and applications for 
districts throughout the state for career teacher aid.  
Application procedures and deadlines shall be established by the 
state board commissioner.  
    Sec. 40.  Minnesota Statutes 1992, section 124.48, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AWARDS.] The state board commissioner, 
with the advice and counsel of the Minnesota Indian scholarship 
committee, may award scholarships to any Minnesota resident 
student who is of one-fourth or more Indian ancestry, who has 
applied for other existing state and federal scholarship and 
grant programs, and who, in the opinion of the board 
commissioner, has the capabilities to benefit from further 
education.  Scholarships shall be for advanced or specialized 
education in accredited or approved colleges or in business, 
technical or vocational schools.  Scholarships shall be used to 
defray the total cost of education including tuition, incidental 
fees, books, supplies, transportation, other related school 
costs and the cost of board and room and shall be paid directly 
to the college or school concerned.  The total cost of education 
includes all tuition and fees for each student enrolling in a 
public institution and the portion of tuition and fees for each 
student enrolling in a private institution that does not exceed 
the tuition and fees at a comparable public institution.  Each 
student shall be awarded a scholarship based on the total cost 
of the student's education and a standardized need analysis.  
The amount and type of each scholarship shall be determined 
through the advice and counsel of the Minnesota Indian 
scholarship committee.  
    When an Indian student satisfactorily completes the work 
required by a certain college or school in a school year the 
student is eligible for additional scholarships, if additional 
training is necessary to reach the student's educational and 
vocational objective.  Scholarships may not be given to any 
Indian student for more than five years of study without special 
approval of the Minnesota Indian scholarship committee. 
    Sec. 41.  Minnesota Statutes 1992, section 124.573, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMPLIANCE WITH RULES.] Aid shall be paid under 
this section only for services rendered or for costs incurred in 
secondary vocational education programs approved by the state 
department of education commissioner and operated in accordance 
with rules promulgated by the state board of education.  These 
rules shall provide minimum student-staff ratios required for a 
secondary vocational education program in a cooperative center 
to qualify for this aid.  The rules shall not require any 
minimum number of administrative staff, any minimum period of 
coordination time or extended employment for secondary 
vocational education personnel, or the availability of 
vocational student activities or organizations for a secondary 
vocational education program to qualify for this aid.  The 
requirement in these rules that program components be available 
for a minimum number of hours shall not be construed to prevent 
pupils from enrolling in secondary vocational education courses 
on an exploratory basis for less than a full school year.  The 
state board of education shall not require a school district to 
offer more than four credits or 560 hours of vocational 
education course offerings in any school year.  Rules relating 
to secondary vocational education programs shall not incorporate 
the provisions of the state plan for vocational education by 
reference.  This aid shall be paid only for services rendered 
and for costs incurred by essential, licensed personnel who meet 
the work experience requirements for licensure pursuant to the 
rules of the state board of education.  Licensed personnel means 
persons holding a valid secondary vocational license issued by 
the department of education commissioner, except that when an 
average of five or fewer secondary full-time equivalent students 
are enrolled per teacher in an approved post-secondary program 
at intermediate district No. 287, 916, or 917, licensed 
personnel means persons holding a valid vocational license 
issued by the department of education commissioner or the state 
board for vocational technical education.  Notwithstanding 
section 124.15, the commissioner may modify or withdraw the 
program or aid approval and withhold aid under this section 
without proceeding under section 124.15 at any time.  To do so, 
the commissioner must determine that the program does not comply 
with rules of the state board or that any facts concerning the 
program or its budget differ from the facts in the district's 
approved application. 
    Sec. 42.  Minnesota Statutes 1992, section 124.625, is 
amended to read: 
    124.625 [VETERANS TRAINING.] 
    The state board of education commissioner shall continue 
the veterans training program.  All receipts to the veterans 
training revolving fund for the veterans training program are 
appropriated to the state board commissioner to pay the 
necessary expenses of operation of the program.  The state board 
department of education shall act as the state agency for 
approving educational institutions for purposes of United States 
Code, title 38, chapter 36, relating to educational benefits for 
veterans and other persons.  The state board may adopt rules to 
fulfill its obligations as the state approving agency.  All 
federal money received for purposes of the veterans training 
program shall be deposited in the veterans training revolving 
fund and is appropriated to the state board department for those 
purposes.  
    Sec. 43.  Minnesota Statutes 1992, section 124A.27, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE ASSISTANCE.] The state board of education 
and the commissioner of education shall provide assistance to 
school boards offering the programs enumerated in this section.  
The state board or commissioner may establish an advisory 
committee for any program area.  Technical assistance shall be 
provided commensurate with school board and district needs.  
State board of education rules apply to all programs or portions 
of programs offered. 
    Sec. 44.  Minnesota Statutes 1992, section 125.185, 
subdivision 6, is amended to read: 
    Subd. 6.  The state board of education commissioner shall 
provide all necessary materials and assistance for the 
transaction of the business of the board of teaching and all 
moneys received by the board of teaching shall be paid into the 
state treasury as provided by law.  The expenses of 
administering sections 125.01 to 125.187 which are incurred by 
the board of teaching shall be paid for from appropriations made 
to the board of teaching. 
    Sec. 45.  Minnesota Statutes 1992, section 126.151, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACCOUNTS OF THE ORGANIZATION.] The commissioner 
and the state boards of education and board of technical 
colleges may retain dues and other money collected on behalf of 
students participating in approved vocational student 
organizations and may deposit the money in separate accounts.  
The money in these accounts shall be available for expenditures 
for state and national activities related to specific 
organizations.  Administration of money collected under this 
section is not subject to the provisions of chapters 15, 16A, 
and 16B, and may be deposited outside the state treasury.  Money 
shall be administered under the policies of the applicable state 
board or agency relating to post-secondary and secondary 
vocational student organizations and is subject to audit by the 
legislative auditor.  Any unexpended money shall not cancel but 
may be carried forward to the next fiscal year. 
    Sec. 46.  Minnesota Statutes 1992, section 126.239, 
subdivision 3, is amended to read: 
    Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
all or part of the fee for advanced placement or international 
baccalaureate examinations for pupils in public and nonpublic 
schools whose circumstances make state payment advisable.  
The state board of education commissioner shall adopt a schedule 
for fee subsidies that may allow payment of the entire fee for 
low-income families, as defined by the state board commissioner. 
The state board commissioner may also determine the 
circumstances under which the fee is subsidized, in whole or in 
part.  The state board commissioner shall determine procedures 
for state payments of fees. 
    Sec. 47.  Minnesota Statutes 1992, section 126.267, is 
amended to read: 
    126.267 [TECHNICAL ASSISTANCE.] 
    The state board of education commissioner shall provide 
technical assistance to school districts receiving aid pursuant 
to section 124.273 and to post-secondary institutions for 
preservice and in-service training for bilingual education 
teachers and English as a second language teachers employed in 
educational programs for limited English proficient students, 
teaching methods, curriculum development, testing and testing 
mechanisms, and the development of instructional materials for 
these educational programs. 
    Sec. 48.  Minnesota Statutes 1992, section 126.52, 
subdivision 8, is amended to read: 
    Subd. 8.  [TECHNICAL ASSISTANCE.] The state board 
commissioner shall provide technical assistance to school 
districts, schools and post-secondary institutions for 
preservice and in-service training for American Indian education 
teachers and teacher's aides, teaching methods, curriculum 
development, testing and testing mechanisms, and the development 
of materials for American Indian education programs. 
    Sec. 49.  Minnesota Statutes 1992, section 126.52, 
subdivision 9, is amended to read: 
    Subd. 9.  [APPLICATION FOR FUNDS.] The state board 
commissioner shall apply for money which may be available under 
federal programs for American Indian education, including funds 
for administration, demonstration projects, training, technical 
assistance, planning and evaluation. 
    Sec. 50.  Minnesota Statutes 1992, section 126.54, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
state board of education shall make grants to no fewer than six 
American Indian language and culture education programs.  At 
least three programs shall be in urban areas and at least three 
shall be on or near reservations.  The board of a local 
district, a participating school or a group of boards may 
develop a proposal for grants in support of American Indian 
language and culture education programs.  Proposals may provide 
for contracts for the provision of program components by 
nonsectarian nonpublic, community, tribal, or alternative 
schools.  The state board commissioner shall prescribe the form 
and manner of application for grants, and no grant shall be made 
for a proposal not complying with the requirements of sections 
126.45 to 126.55.  The state board shall submit all proposals to 
the state advisory task force on American Indian language and 
culture education programs for its recommendations concerning 
approval, modification, or disapproval and the amounts of grants 
to approved programs. 
    Sec. 51.  Minnesota Statutes 1992, section 126.56, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
only for an eligible program.  To be eligible, a program must: 
    (1) provide, as its primary purpose, academic instruction 
for student enrichment in curricular areas including, but not 
limited to, communications, humanities, social studies, social 
science, science, mathematics, art, or foreign languages; 
    (2) not be offered for credit to post-secondary students; 
    (3) not provide remedial instruction; 
    (4) meet any other program requirements established by the 
state board of education and the higher education coordinating 
board; and 
    (5) be approved by the state board of education 
commissioner.  
    Sec. 52.  Minnesota Statutes 1992, section 126.56, 
subdivision 7, is amended to read: 
    Subd. 7.  [ADMINISTRATION.] The state board of education 
and the higher education coordinating board and commissioner 
shall determine the time and manner for scholarship 
applications, awards, and program approval. 
    Sec. 53.  Minnesota Statutes 1992, section 126.665, is 
amended to read: 
    126.665 [STATE CURRICULUM ADVISORY COMMITTEE.] 
    The commissioner state board shall appoint a state 
curriculum advisory committee of 11 members to advise the state 
board it and the department on the PER process.  Nine members 
shall be from each of the educational cooperative service units 
and two members shall be at-large.  The committee shall include 
representatives from the state board of education, higher 
education, parents, teachers, administrators, business, and 
school board members.  Each member shall be a present or past 
member of a district curriculum advisory committee.  The state 
committee shall provide information and recommendations about at 
least the following:  
    (1) department procedures for reviewing and approving 
reports and disseminating information; 
    (2) exemplary PER processes; 
    (3) recommendations for improving the PER process and 
reports; and 
    (4) developing a continuous process for identifying and 
attaining essential learner outcomes.  
    The committee expires as provided in section 15.059, 
subdivision 5. 
    Sec. 54.  Minnesota Statutes 1992, section 126A.07, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COOPERATION AND SUPPORT.] The director 
shall cooperate with and support the environmental education 
program developed by the state board of education and the 
department of education commissioner. 
    Sec. 55.  Minnesota Statutes 1992, section 128A.024, 
subdivision 2, is amended to read: 
    Subd. 2.  [VARIOUS LEVELS OF SERVICE.] The academies must 
provide their pupils with the levels of service defined in state 
board rules of the state board. 

                               ARTICLE 14

                       REFERENCES TO REPEALED LAW
    Section 1.  Minnesota Statutes 1992, section 6.65, is 
amended to read: 
    6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 
    The state auditor shall prescribe minimum procedures and 
the audit scope for auditing the books, records, accounts, and 
affairs of local governments in Minnesota.  The minimum scope 
for audits of all local governments must include financial and 
legal compliance audits for fiscal years ending after January 
15, 1984.  Audits of all school districts shall include a 
determination of compliance with uniform financial accounting 
and reporting standards adopted by the state board of education 
according to section 121.902, subdivision 1.  The state auditor 
shall establish a task force to promulgate an audit guide for 
legal compliance audits.  The task force must include 
representatives of the state auditor, the attorney general, 
towns, cities, counties, school districts, and private sector 
public accountants. 
    Sec. 2.  Minnesota Statutes 1992, section 89.35, 
subdivision 2, is amended to read: 
    Subd. 2.  [PURPOSE OF PLANTING.] The purposes for which 
trees may be produced, procured, distributed, and planted under 
sections 89.35 to 89.39 shall include auxiliary forests, 
woodlots, windbreaks, shelterbelts, erosion control, soil 
conservation, water conservation, provision of permanent food 
and cover for wild life, environmental education, and 
afforestation and reforestation on public or private lands of 
any kind, but shall not include the raising of fruit for human 
consumption or planting for purely ornamental purposes other 
than in connection with an environmental education program as 
provided in section 126.111.  It is hereby declared that all 
such authorized purposes are in furtherance of the public 
health, safety, and welfare. 
    Sec. 3.  Minnesota Statutes 1992, section 120.17, 
subdivision 7a, is amended to read: 
    Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
Responsibility for special instruction and services for a 
visually disabled or hearing impaired child attending the 
Minnesota state academy for the deaf or the Minnesota state 
academy for the blind shall be determined in the following 
manner: 
    (a) The legal residence of the child shall be the school 
district in which the child's parent or guardian resides. 
    (b) When it is determined pursuant to section 128A.05, 
subdivision 1 or 2, that the child is entitled to attend either 
school, the state board shall provide the appropriate 
educational program for the child.  The state board shall make a 
tuition charge to the child's district of residence for the cost 
of providing the program.  The amount of tuition charged shall 
not exceed the basic revenue of the district for that child, for 
the amount of time the child is in the program.  For purposes of 
this subdivision, "basic revenue" has the meaning given it in 
section 124A.22, subdivision 2.  The district of the child's 
residence shall pay the tuition and may claim general education 
aid for the child.  The district of the child's residence shall 
not receive aid pursuant to section 124.32, subdivision 5, for 
tuition paid pursuant to this subdivision.  Tuition received by 
the state board, except for tuition received under clause (c), 
shall be deposited in the state treasury as provided in clause 
(g). 
      (c) In addition to the tuition charge allowed in clause 
(b), the academies may charge the child's district of residence 
for the academy's unreimbursed cost of providing an 
instructional aide assigned to that child, if that aide is 
required by the child's individual education plan.  Tuition 
received under this clause must be used by the academies to 
provide the required service. 
      (d) When it is determined that the child can benefit from 
public school enrollment but that the child should also remain 
in attendance at the applicable school, the school district 
where the institution is located shall provide an appropriate 
educational program for the child and shall make a tuition 
charge to the state board for the actual cost of providing the 
program, less any amount of aid received pursuant to section 
124.32.  The state board shall pay the tuition and other program 
costs including the unreimbursed transportation costs.  Aids for 
children with a disability shall be paid to the district 
providing the special instruction and services.  Special 
transportation shall be provided by the district providing the 
educational program and the state shall reimburse such district 
within the limits provided by law.  
      (e) Notwithstanding the provisions of clauses (b) and (d), 
the state board may agree to make a tuition charge for less than 
the amount specified in clause (b) for pupils attending the 
applicable school who are residents of the district where the 
institution is located and who do not board at the institution, 
if that district agrees to make a tuition charge to the state 
board for less than the amount specified in clause (d) for 
providing appropriate educational programs to pupils attending 
the applicable school. 
     (f) Notwithstanding the provisions of clauses (b) and (d), 
the state board may agree to supply staff from the Minnesota 
state academy for the deaf and the Minnesota state academy for 
the blind to participate in the programs provided by the 
district where the institutions are located when the programs 
are provided to students in attendance at the state schools.  
     (g) On May 1 of each year, the state board shall count the 
actual number of Minnesota resident kindergarten and elementary 
students and the actual number of Minnesota resident secondary 
students enrolled and receiving education services at the 
Minnesota state academy for the deaf and the Minnesota state 
academy for the blind.  The state board shall deposit in the 
state treasury an amount equal to all tuition received less:  
     (1) the total number of students on May 1 less 175, times 
the ratio of the number of kindergarten and elementary students 
to the total number of students on May 1, times the general 
education formula allowance; plus 
    (2) the total number of students on May 1 less 175, times 
the ratio of the number of secondary students on May 1 to the 
total number of students on May 1, times 1.3, times the general 
education formula allowance.  
    (h) The sum provided by the calculation in clause (g), 
subclauses (1) and (2), must be deposited in the state treasury 
and credited to the general operation account of the academy for 
the deaf and the academy for the blind.  
    (i) There is annually appropriated to the department of 
education for the Faribault academies the tuition amounts 
received and credited to the general operation account of the 
academies under this section.  A balance in an appropriation 
under this paragraph does not cancel but is available in 
successive fiscal years. 
    Sec. 4.  Minnesota Statutes 1992, section 121.11, 
subdivision 5, is amended to read: 
    Subd. 5.  [UNIFORM SYSTEM OF RECORDS AND OF ACCOUNTING.] 
The state board shall prepare a uniform system of records for 
public schools, require reports from superintendents and 
principals of schools, teachers, school officers, and the chief 
officers of public and other educational institutions, to give 
such facts as it may deem of public value.  Beginning in fiscal 
year 1977, all reports required of school districts by the state 
board shall be in conformance with the uniform financial 
accounting and reporting system adopted pursuant to section 
121.902.  With the cooperation of the state auditor, the state 
board shall establish and carry into effect a uniform system of 
accounting by public school officers and it shall have authority 
to supervise and examine the accounts and other records of all 
public schools. 
    Sec. 5.  Minnesota Statutes 1992, section 121.908, 
subdivision 6, is amended to read: 
    Subd. 6.  A school district providing early retirement 
incentive payments under section 125.611, severance pay under 
section 465.72, or health insurance benefits to retired 
employees under section 471.61, must account for the payments 
according to uniform financial accounting and reporting 
standards adopted for Minnesota school districts pursuant to 
section 121.902.  
    Sec. 6.  Minnesota Statutes 1992, section 121.932, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXEMPTION FROM CHAPTER 14.] Except as provided 
in section 121.931, subdivision 8, The annual data acquisition 
calendar and the essential data elements are exempt from the 
administrative procedure act but, to the extent authorized by 
law to adopt rules, the board may use the provisions of section 
14.38, subdivisions 5 to 9. 
    Sec. 7.  Minnesota Statutes 1992, section 123.71, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every school board shall, no later than 
October 1, publish the revenue and expenditure budgets submitted 
to the commissioner of education in accordance with section 
121.908, subdivision 4, for the current year and the actual 
revenues, expenditures, fund balances for the prior year and 
projected fund balances for the current year in a form 
prescribed by the state board of education after consultation 
with the advisory council on uniform financial accounting and 
reporting standards.  The forms prescribed shall be designed so 
that year to year comparisons of revenue, expenditures and fund 
balances can be made.  These budgets, reports of revenue, 
expenditures and fund balances shall be published in a qualified 
newspaper of general circulation in the district. 
    Sec. 8.  Minnesota Statutes 1992, section 124.155, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (1) general education aid authorized in sections 124A.23 
and 124B.20; 
    (2) secondary vocational aid authorized in section 124.573; 
    (3) special education aid authorized in section 124.32; 
    (4) secondary vocational aid for children with a disability 
authorized in section 124.574; 
    (5) aid for pupils of limited English proficiency 
authorized in section 124.273; 
    (6) transportation aid authorized in section 124.225; 
    (7) community education programs aid authorized in section 
124.2713; 
    (8) adult education aid authorized in section 124.26; 
    (9) early childhood family education aid authorized in 
section 124.2711; 
    (10) capital expenditure aid authorized in sections 
124.243, 124.244, and 124.83; 
    (11) education district aid according to section 124.2721; 
    (12) secondary vocational cooperative aid according to 
section 124.575; 
    (13) (12) assurance of mastery aid according to section 
124.311; 
    (14) (13) individual learning and development aid according 
to section 124.331; 
    (15) (14) homestead credit under section 273.13 for taxes 
payable in 1989 and additional transition credit under section 
273.1398, subdivision 5, for taxes payable in 1990 and 
thereafter; 
    (16) (15) agricultural credit under section 273.132 for 
taxes payable in 1989 and additional transition credit under 
section 273.1398, subdivision 5, for taxes payable in 1990 and 
thereafter; 
    (17) (16) homestead and agricultural credit aid and 
disparity reduction aid authorized in section 273.1398, 
subdivision 2; 
    (18) (17) attached machinery aid authorized in section 
273.138, subdivision 3; and 
    (19) (18) alternative delivery aid authorized in section 
124.322. 
    (b) The commissioner of education shall schedule the timing 
of the adjustments to state aids and credits specified in 
subdivision 1, as close to the end of the fiscal year as 
possible. 
    Sec. 9.  Minnesota Statutes 1992, section 124.195, 
subdivision 8, is amended to read: 
    Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
hundred percent of the aid for the last fiscal year must be paid 
for the following aids:  special education residential aid 
according to section 124.32, subdivision 5; special education 
pupil aid according to section 124.32, subdivision 6; special 
education summer school aid, according to section 124.32, 
subdivision 10; and planning, evaluating, and reporting process 
aid according to section 124.274. 
    Sec. 10.  Minnesota Statutes 1992, section 124.2711, 
subdivision 2, is amended to read: 
    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 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.  
    Sec. 11.  Minnesota Statutes 1992, section 124.322, 
subdivision 2, is amended to read: 
    Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
first fiscal year after approval of an application, a district 
shall receive the sum of the revenue it received for the 
preceding fiscal year for its special education program under 
section 124.32, subdivisions 1b, 2, 5, and 10, and Minnesota 
Statutes 1990, section 275.125, subdivision 8c, or section 
124.321, subdivisions 1 and 2, as applicable, multiplied by 
1.03.  For each of the next two fiscal years, the district shall 
receive the amount it received for the previous fiscal year 
multiplied by 1.03.  
    Sec. 12.  Minnesota Statutes 1992, section 124.322, 
subdivision 3, is amended to read: 
    Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
year after approval of an application, a district shall receive 
the sum of the aid it received for the preceding fiscal year 
under section 124.32, subdivisions 1b, 2, 5, and 10, multiplied 
by 1.03.  The aid for the first year of revenue shall not be 
prorated.  For each of the next two fiscal years, the district 
shall receive the amount of aid it received for the previous 
fiscal year multiplied by 1.03.  A district that receives aid 
under this subdivision shall not receive aid under section 
124.32, subdivisions 1b, 2, 5, and 10, for the same fiscal year. 
    Sec. 13.  Minnesota Statutes 1992, section 126.54, 
subdivision 3, is amended to read: 
    Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each school district 
receiving a grant under this section shall each year conduct a 
count of American Indian children in the schools of the 
district; test for achievement; identify the extent of other 
educational needs of the children to be enrolled in the American 
Indian language and culture education program; and classify the 
American Indian children by grade, level of educational 
attainment, age and achievement.  This count may be part of the 
school census required pursuant to section 120.095.  
Participating schools shall maintain records concerning the 
needs and achievements of American Indian children served. 
    Sec. 14.  Minnesota Statutes 1992, section 127.20, is 
amended to read: 
    127.20 [VIOLATIONS; PENALTIES.] 
    Any person who fails or refuses to provide for instruction 
of a child of whom the person has legal custody, and who is 
required by section 120.101, subdivision 5, or by a policy 
adopted under section 120.101, subdivision 5a, to receive 
instruction, when notified so to do by a truant officer or other 
official, or any person who induces or attempts to induce any 
such child unlawfully to be absent from school, or who knowingly 
harbors or employs, while school is in session, any child 
unlawfully absent from school, shall be guilty of a misdemeanor 
and, upon conviction, shall be punished by a fine of not more 
than $50, or by imprisonment for not more than 30 days.  All 
fines, when collected, shall be paid into the county treasury 
for the benefit of the school district in which the offense is 
committed. 
    Sec. 15.  Minnesota Statutes 1992, section 136C.04, 
subdivision 6, is amended to read: 
    Subd. 6.  [ACCOUNTING AND REPORTING STANDARDS.] The state 
board shall maintain the uniform financial accounting and 
reporting system according to the provisions of sections 121.90 
121.904 to 121.917, except that reports required by section 
121.908 must be submitted to the state board on dates determined 
by the state board.  All expenditures and revenue related to 
summer session credit courses must be recognized in the fiscal 
year in which the course begins.  
    Sec. 16.  [INSTRUCTIONS TO REVISOR.] 
    (a) In the next edition of Minnesota Statutes, the revisor 
must, in the section or subdivision listed in column A, delete 
the reference listed in column B. 
     Column A                   Column B
     121.904, subd. 4a          124.2721, subd. 3
     121.904, subd. 4e          124.2721 
     121.904, subd. 4e          124.2721, subd. 3 
     124.155, subd. 1           124.912, subd. 5 
     124.2725, subd. 13         124.2721 
     273.1398, subd. 6          124.2721
     274.20, subd. 2            124.2721 
    (b) In the next edition of Minnesota Statutes, the revisor 
must, in the section or subdivision listed in column A, change 
the reference listed in column B to the reference listed in 
column C.  
     Column A                Column B          Column C
     16B.43                  121.937           121.936
     120.064, subd. 8        121.901           121.904 
     121.93, subd. 1         121.937           121.936
     121.931, subd. 1        121.937           121.936
     121.935, subd. 1        121.937           121.936 
     121.935, subd. 2        121.90            121.904
     121.936, subd. 4a       121.90            121.904
     124.14, subd. 2         121.90            121.904
     126.269                 126.268           126.267
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1992, sections 121.93, subdivision 5; 
124.195, subdivision 13; and 128B.03, subdivision 2, are 
repealed. 

                               ARTICLE 15 
    Section 1.  Minnesota Statutes 1992, section 124A.029, 
subdivision 4, is amended to read: 
    Subd. 4.  [PER PUPIL REVENUE OPTION.] A district may, by 
school board resolution, request that the department convert the 
levy authority under section 124.912, subdivisions 2 and 3, or 
its current referendum revenue, excluding authority based on a 
dollar amount, authorized before July 1, 1991 1993, to an 
allowance per pupil.  The district must adopt a resolution and 
submit a copy of the resolution to the department by July 
1, 1992 1993.  The department shall convert a district's revenue 
for fiscal year 1994 1995 and later years as follows:  the 
revenue allowance equals the amount determined by dividing the 
district's maximum revenue under section 124A.03 or 124.912, 
subdivisions 2 and 3, for fiscal year 1993 1994 by the 
district's 1992-1993 1993-1994 actual pupil units.  A district's 
maximum revenue for all later years for which the revenue is 
authorized equals the revenue allowance times the district's 
actual pupil units for that year.  If a district has referendum 
authority under section 124A.03 and levy authority under section 
124.912, subdivisions 2 and 3, and the district requests that 
each be converted, the department shall convert separate revenue 
allowances for each.  However, if a district's referendum 
revenue is limited to a dollar amount, the maximum revenue under 
section 124A.03 must not exceed that dollar amount.  If the 
referendum authority of a district is converted according to 
this subdivision, the authority expires July 1, 1997 June 30, 
1997, unless it is scheduled to expire sooner.  
    Sec. 2.  [DECLINING PUPIL UNIT AID.] 
    (a) For fiscal year 1994 only, a school district is 
eligible for declining pupil unit aid equal to the greater of 
zero or the result of the following computation: 
    (1) add 77 percent of the district's actual pupil units for 
fiscal year 1994 and 23 percent of the district's actual pupil 
units for fiscal year 1993; 
    (2) subtract from the amount calculated in clause (1) the 
district's actual pupil units for fiscal year 1994; and 
    (3) multiply the amount determined in clause (2) by the 
basic formula allowance for that year. 
    (b) The aid amount calculated under paragraph (a) is 
available from the general education appropriation under article 
1, section 41, subdivision 2, to the department of education for 
payment of declining pupil unit aid. 
    Sec. 3.  [FISCAL YEAR 1996 AND FISCAL YEAR 1997 
APPROPRIATIONS.] 
    The appropriations for the 1996-1997 biennium for programs 
contained in this bill will be $2,770,488,000 for fiscal year 
1996 and $2,953,102,000 for fiscal year 1997, plus or minus any 
adjustments due to variance in pupil forecasts, levies or other 
factors generating entitlements for the general revenue program 
established in Minnesota Statutes, section 124A.04.  These 
amounts will first be allocated to fully fund the general 
revenue program.  Amounts remaining will be allocated to other 
programs in proportion to the fiscal year 1995 appropriations or 
the entitlements generated by existing law for those programs 
for each year, up to the amount of the entitlement or the fiscal 
year 1995 appropriations.  Any amounts remaining after 
allocation to these other programs may be maintained in a 
reserve account pending recommendations of the governor and 
legislature in the 1995 session. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Section 1 is effective the day following final enactment. 
    Presented to the governor May 13, 1993 
    Signed by the governor May 17, 1993, 10:38 p.m.

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