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1999 Minnesota Session Laws

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                            CHAPTER 241-H.F.No. 2333 
                  An act relating to education; prekindergarten through 
                  grade 12; providing for general education; special 
                  programs; lifework development; facilities and 
                  technology; education excellence; other programs; 
                  nutrition programs; libraries; education policy; and 
                  state agencies; appropriating money; amending 
                  Minnesota Statutes 1998, sections 13.46, subdivision 
                  2; 41D.02, subdivision 2; 120A.24, subdivision 1; 
                  120A.40; 120B.30, subdivision 1; 120B.35; 121A.23; 
                  121A.43, as amended; 121A.61, subdivision 1; 122A.09, 
                  subdivision 4; 122A.18, by adding subdivisions; 
                  122A.19, subdivision 4; 122A.20, subdivisions 1 and 2; 
                  122A.21; 122A.28; 122A.40, subdivisions 5, 7, and 16; 
                  122A.41, subdivision 4; 122A.60, subdivisions 1 and 3; 
                  122A.61, subdivision 1; 123A.05, subdivisions 2 and 3; 
                  123A.06, subdivisions 1 and 2; 123A.48, subdivision 
                  10; 123B.02, subdivision 3; 123B.195; 123B.36, 
                  subdivision 1; 123B.49, subdivision 4; 123B.53, 
                  subdivisions 2, 4, 5, 6, and 7; 123B.54; 123B.57, 
                  subdivision 4; 123B.59, subdivision 1; 123B.61; 
                  123B.75, by adding a subdivision; 123B.77, subdivision 
                  4; 123B.83, subdivision 4; 123B.90, subdivisions 2 and 
                  3; 123B.91, subdivision 1; 123B.92, subdivision 9; 
                  124D.03, by adding a subdivision; 124D.081, 
                  subdivision 3; 124D.10, subdivisions 3, 4, 5, 6, and 
                  11; 124D.11, subdivisions 1, 4, 6, and by adding a 
                  subdivision; 124D.453, subdivision 3; 124D.454, 
                  subdivision 5; 124D.65, subdivisions 1, 4, and 5; 
                  124D.68, subdivision 9; 124D.69, subdivision 1; 
                  124D.86, subdivisions 1 and 3; 124D.87; 124D.88, 
                  subdivision 3; 124D.89, subdivision 1; 124D.94, 
                  subdivisions 3, 6, and 7; 125A.09, subdivisions 4 and 
                  11; 125A.15; 125A.50, subdivisions 2 and 5; 125A.51; 
                  125A.62; 125A.64; 125A.65, subdivisions 3, 5, 6, 7, 8, 
                  and 10; 125A.68, subdivision 1; 125A.69, subdivisions 
                  1 and 3; 125A.70, subdivision 2; 125A.71, subdivision 
                  3; 125A.72; 125A.73; 125A.75, subdivisions 3 and 8; 
                  125A.76, subdivisions 1, 2, 4, and 5; 125A.79, 
                  subdivisions 1, 2, and by adding subdivisions; 
                  125B.05, subdivision 3; 125B.20; 126C.05, subdivisions 
                  1, 3, 5, 6, and 7; 126C.10, subdivisions 1, 2, 4, 5, 
                  6, 7, 8, 9, 10, 13, 14, 18, 19, 20, 21, and by adding 
                  subdivisions; 126C.12, subdivisions 1 and 4; 126C.13, 
                  subdivisions 1 and 2; 126C.15; 126C.17, subdivisions 
                  1, 2, 4, 5, 6, and 9; 126C.40, subdivision 4; 126C.41, 
                  subdivision 2; 126C.42, subdivisions 1 and 2; 126C.44; 
                  126C.46; 126C.55, by adding a subdivision; 126C.63, 
                  subdivisions 5 and 8; 126C.69, subdivisions 2 and 9; 
                  127A.05, subdivision 1; 127A.41, subdivision 5; 
                  127A.42, subdivisions 5 and 6; 127A.44, subdivision 2; 
                  127A.45, subdivisions 2, 3, 4, 13, and by adding a 
                  subdivision; 127A.47, subdivisions 1, 2, 7, and 8; 
                  127A.49, subdivisions 2 and 3; 127A.51; 127A.60, 
                  subdivision 1; 127A.66, subdivision 2; 128C.01, 
                  subdivision 4; 128C.02, by adding a subdivision; 
                  128C.20, subdivision 1; 129C.10, by adding a 
                  subdivision; 169.01, subdivision 6; 169.03, 
                  subdivision 6; 171.3215, subdivisions 2 and 4; 
                  181.101; 209.07, by adding a subdivision; 241.021, 
                  subdivision 1; 245A.04, by adding a subdivision; and 
                  626.556, subdivision 10b, and by adding a subdivision; 
                  Laws 1992, chapter 499, article 7, section 31, as 
                  amended; Laws 1993, chapter 224, article 3, section 
                  32, as amended; Laws 1995 First Special Session 
                  chapter 3, article 12, section 7, as amended; Laws 
                  1996, chapter 412, article 1, section 35; Laws 1997 
                  First Special Session chapter 4, article 1, section 
                  61, subdivisions 1, 2, 3, as amended, and 4; article 
                  2, section 51, subdivision 29, as amended; article 3, 
                  section 25, subdivision 6; article 5, section 22; 
                  article 8, section 4; article 9, sections 6, 7, 
                  subdivision 2, and 13; Laws 1998, chapter 398, article 
                  9, section 7; chapter 404, section 5, subdivision 5; 
                  and Laws 1999, chapter 123, section 22; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  121A; 123A; 124D; 125A; 127A; repealing Minnesota 
                  Statutes 1998, sections 119A.04, subdivision 5; 
                  120B.05; 123A.44; 123A.441; 123A.442; 123A.443; 
                  123A.444; 123A.445; 123A.446; 123B.57, subdivisions 4, 
                  5, and 7; 123B.58; 123B.59, subdivision 7; 123B.63, 
                  subdivisions 1 and 2; 123B.64, subdivisions 1, 2, 3, 
                  and 4; 123B.66; 123B.67; 123B.68; 123B.69; 123B.89; 
                  123B.92, subdivisions 2, 4, 6, 7, 8, and 10; 124D.081, 
                  subdivisions 7 and 8; 124D.112; 124D.113; 124D.116; 
                  124D.453; 124D.65, subdivisions 1, 2, and 3; 124D.67; 
                  124D.70; 125A.76, subdivision 6; 125A.77; 125A.79, 
                  subdivision 3; 126C.05, subdivision 4; 126C.06; 
                  127A.42, subdivision 8; 127A.45, subdivision 5; 
                  127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, 
                  subdivision 2; 127A.64; 127A.66, subdivision 1; and 
                  134.155; Minnesota Rules, parts 3500.3900; 3500.4000; 
                  3500.4100; 3500.4200; and 3500.4300. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                               GENERAL EDUCATION 
           Section 1.  Minnesota Statutes 1998, section 123B.92, 
        subdivision 9, is amended to read: 
           Subd. 9.  [NONPUBLIC PUPIL TRANSPORTATION AID.] (a) A 
        district's nonpublic pupil transportation aid for the 1996-1997 
        and later school years for transportation services for nonpublic 
        school pupils according to sections 123B.88, 123B.84 to 123B.86, 
        and this section, equals the sum of the amounts computed in 
        paragraphs (b) and (c).  This aid does not limit the obligation 
        to transport pupils under sections 123B.84 to 123B.87. 
           (b) For regular and excess transportation according to 
        subdivision 1, paragraph (b), clauses (1) and (2), an amount 
        equal to the product of: 
           (1) the district's actual expenditure per pupil transported 
        in the regular and excess transportation categories during the 
        second preceding school year; times 
           (2) the number of nonpublic school pupils residing in the 
        district who receive regular or excess transportation service or 
        reimbursement for the current school year; times 
           (3) the ratio of the formula allowance pursuant to section 
        126C.10, subdivision 2, for the current school year to the 
        formula allowance pursuant to section 126C.10, subdivision 2, 
        for the second preceding school year. 
           (c) For nonpublic nonregular transportation according to 
        subdivision 1, paragraph (b), clause (5), an amount equal to the 
        product of: 
           (1) the district's actual expenditure for nonpublic 
        nonregular transportation during the second preceding school 
        year; times 
           (2) the ratio of the formula allowance pursuant to section 
        126C.10, subdivision 2, for the current school year to the 
        formula allowance pursuant to section 126C.10, subdivision 2, 
        for the second preceding school year. 
           (d) Notwithstanding the amount of the formula allowance for 
        fiscal years 1997 and 1998 2000, 2001, and 2002 in section 
        126C.10, subdivision 2, the commissioner shall use the amount of 
        the formula allowance for the current year less $300 plus $87 in 
        determining the nonpublic pupil transportation revenue in 
        paragraphs (b) and (c) for fiscal years 1997 and 1998 year 2000, 
        and the amount of the formula allowance less $110 in determining 
        the nonpublic pupil transportation revenue in paragraphs (b) and 
        (c) for fiscal years 2001 and 2002. 
           Sec. 2.  Minnesota Statutes 1998, section 124D.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
        education revenue must be paid to a charter school as though it 
        were a district.  The general education revenue for 
        each adjusted marginal cost pupil unit is the state average 
        general education revenue per pupil unit, plus the referendum 
        equalization aid allowance in the pupil's district of residence, 
        minus an amount equal to the product of the formula allowance 
        according to section 126C.10, subdivision 2, times .0485, 
        calculated without basic skills revenue, transportation sparsity 
        revenue, and the transportation portion of the transition 
        revenue adjustment, plus basic skills revenue as though the 
        school were a school district. 
           Sec. 3.  Minnesota Statutes 1998, section 124D.65, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ADJUSTED LEP BASE REVENUE.] (a) A 
        district's adjusted limited English proficiency programs base 
        revenue for fiscal year 1996 and later 2000 equals the product 
        of: 
           (1) the district's base revenue for limited English 
        proficiency programs under this section and section 125A.77, 
        times 
           (2) the ratio of: 
           (i) the greater of 20 or the number of pupils of limited 
        English proficiency enrolled in the district during the current 
        fiscal year to 
           (ii) the greater of 20 or the number of pupils of limited 
        English proficiency enrolled in the district during the base 
        year. 
           (b) For the purposes of this section, the base year for 
        fiscal year 1996 is fiscal year 1995.  The base year for later 
        fiscal years is the second fiscal year preceding the fiscal year 
        for which aid shall be paid.  The current year is the fiscal 
        year for which aid shall be paid. 
           (c) For the purposes of this section, a teacher includes 
        nonlicensed personnel who provide direct instruction to students 
        of limited English proficiency under the supervision of a 
        licensed teacher. 
           Sec. 4.  Minnesota Statutes 1998, section 124D.65, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
        district's limited English proficiency programs revenue for 
        fiscal year 1996 and later 2000 equals the state total limited 
        English proficiency programs revenue, minus the amount 
        determined under paragraph (b), times the ratio of the 
        district's adjusted limited English proficiency programs base 
        revenue to the state total adjusted limited English proficiency 
        programs base revenue. 
           (b) Notwithstanding paragraph (a), if the limited English 
        proficiency programs base revenue for a district equals zero, 
        the limited English proficiency programs revenue equals the sum 
        of the following amounts, computed using current year data: 
           (1) 68 percent of the salary of one full-time equivalent 
        teacher for each 40 pupils of limited English proficiency 
        enrolled, or 68 percent of the salary of one-half of a full-time 
        teacher in a district with 20 or fewer pupils of limited English 
        proficiency enrolled; and 
           (2) for supplies and equipment purchased or rented for use 
        in the instruction of pupils of limited English proficiency an 
        amount equal to 47 percent of the sum actually spent by the 
        district but not to exceed an average of $47 in any one school 
        year for each pupil of limited English proficiency receiving 
        instruction. 
           (c) A district's limited English proficiency programs 
        revenue for fiscal year 2001 and later equals the product of 
        $584 times the greater of 20 or the number of adjusted marginal 
        cost pupils of limited English proficiency enrolled in the 
        district during the current fiscal year. 
           Sec. 5.  Minnesota Statutes 1998, section 124D.68, 
        subdivision 9, is amended to read: 
           Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
        attending an eligible program full time under subdivision 3, 
        paragraph (d), the department must pay 90 percent of the 
        district's average general education revenue less compensatory 
        basic skills revenue to the eligible program and ten percent of 
        the district's average general education revenue 
        less compensatory basic skills 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, 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 general education revenue.  If payment is made 
        for a pupil under this subdivision, a district shall not 
        reimburse a program under section 124D.69 for the same 
        pupil.  Compensatory Basic skills revenue shall be paid 
        according to section 126C.10, subdivision 3 4. 
           (b) The department must pay up to 100 percent of the 
        revenue to the eligible program if there is an agreement to that 
        effect between the school district and the eligible program.  
           Sec. 6.  Minnesota Statutes 1998, section 124D.69, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
        program, eligible under section 124D.68, subdivision 3, 
        paragraph (d), or subdivision 4, operated by a private 
        organization that has contracted with a school district to 
        provide educational services for eligible pupils under section 
        124D.68, subdivision 2, the district contracting with the 
        private organization must reimburse the provider an amount equal 
        to at least 90 percent of the district's average general 
        education less compensatory basic skills revenue per pupil unit 
        times the number of pupil units for pupils attending the 
        program.  Basic skills revenue shall be paid according to 
        section 126C.10, subdivision 4.  Compensatory revenue must be 
        allocated according to section 126C.15, subdivision 2.  For a 
        pupil attending the program part time, the revenue paid to the 
        program must be reduced proportionately, according to the amount 
        of time the pupil attends the program, and revenue paid to the 
        district shall be reduced accordingly.  Pupils for whom a 
        district provides reimbursement may not be counted by the 
        district for any purpose other than computation of general 
        education revenue.  If payment is made to a district or program 
        for a pupil under this section, the department must not make a 
        payment for the same pupil under section 124D.68, subdivision 9. 
           Sec. 7.  Minnesota Statutes 1998, section 124D.86, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 2000 
        and later fiscal years, integration revenue equals the following 
        amounts: 
           (1) for independent school district No. 709, 
        Duluth, $193 $207 times the resident adjusted pupil units for 
        the school year; 
           (2) for independent school district No. 625, St. 
        Paul, $427 $446 times the resident adjusted pupil units for the 
        school year; 
           (3) for special school district No. 1, 
        Minneapolis, $523 $536 times the resident adjusted pupil units 
        for the school year; and 
           (4) for a district not listed in clause (1), (2), or (3) 
        that is required to implement a plan according to the 
        requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
        the lesser of the actual cost of implementing the plan during 
        the fiscal year or $93 times the resident adjusted pupil units 
        for the school year. 
           Sec. 8.  Minnesota Statutes 1998, section 126C.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PUPIL UNIT.] Pupil units for each 
        Minnesota resident pupil in average daily membership enrolled in 
        the district of residence, in another district under sections 
        123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 
        124D.68; in a charter school under section 124D.10; or for whom 
        the resident district pays tuition under section 123A.18, 
        123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
        subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
        125A.65, shall be counted according to this subdivision.  
           (a) A prekindergarten pupil with a disability who is 
        enrolled in a program approved by the commissioner and has an 
        individual education plan is counted as the ratio of the number 
        of hours of assessment and education service to 825 times 1.25 
        with a minimum of 0.28, but not more than one 1.25. 
           (b) A prekindergarten pupil who is assessed but determined 
        not to be handicapped is counted as the ratio of the number of 
        hours of assessment service to 825 times 1.25.  
           (c) A kindergarten pupil with a disability who is enrolled 
        in a program approved by the commissioner is counted as the 
        ratio of the number of hours of assessment and education 
        services required in the fiscal year by the pupil's individual 
        education program plan to 875, but not more than one. 
           (d) A kindergarten pupil who is not included in paragraph 
        (c) is counted as .53 .557 of a pupil unit for fiscal year 1995 
        2000 and thereafter. 
           (e) A pupil who is in any of grades 1 to 3 is counted as 
        1.115 pupil units for fiscal year 2000 and thereafter. 
           (f) A pupil who is any of grades 4 to 6 is counted as 1.06 
        pupil units for fiscal year 1995 and thereafter. 
           (f) (g) A pupil who is in any of grades 7 to 12 is counted 
        as 1.3 pupil units.  
           (g) (h) A pupil who is in the post-secondary enrollment 
        options program is counted as 1.3 pupil units.  
           Sec. 9.  Minnesota Statutes 1998, section 126C.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
        revenue pupil units for fiscal year 1998 and thereafter must be 
        computed according to this subdivision.  
           (a) The compensation revenue concentration percentage for 
        each building in a district equals the product of 100 times the 
        ratio of:  
           (1) the sum of the number of pupils enrolled in the 
        building eligible to receive free lunch plus one-half of the 
        pupils eligible to receive reduced priced lunch on October 1 of 
        the previous fiscal year; to 
           (2) the number of pupils enrolled in the building on 
        October 1 of the previous fiscal year. 
           (b) The compensation revenue pupil weighting factor for a 
        building equals the lesser of one or the quotient obtained by 
        dividing the building's compensation revenue concentration 
        percentage by 80.0.  
           (c) The compensation revenue pupil units for a building 
        equals the product of:  
           (1) the sum of the number of pupils enrolled in the 
        building eligible to receive free lunch and one-half of the 
        pupils eligible to receive reduced priced lunch on October 1 of 
        the previous fiscal year; times 
           (2) the compensation revenue pupil weighting factor for the 
        building; times 
           (3) .60. 
           (d) Notwithstanding paragraphs (a) to (c), for charter 
        schools and contracted alternative programs in the first year of 
        operation, compensation revenue pupil units shall be computed 
        using data for the current fiscal year.  If the charter school 
        or contracted alternative program begins operation after October 
        1, compensatory revenue pupil units shall be computed based on 
        pupils enrolled on an alternate date determined by the 
        commissioner, and the compensation revenue pupil units shall be 
        prorated based on the ratio of the number of days of student 
        instruction to 170 days. 
           (e) The percentages in this subdivision must be based on 
        the count of individual pupils and not on a building average or 
        minimum. 
           Sec. 10.  Minnesota Statutes 1998, section 126C.05, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units 
        for a district or charter school means the sum of: 
           (1) the number of resident pupil units served, according to 
        subdivision 1g 7, plus 
           (2) shared time pupil units, according to section 126C.01, 
        subdivision 6, plus 
           (3) pupil units according to subdivision 1 for pupils 
        attending the district for which general education aid 
        adjustments are made according to section 127A.47, subdivision 
        7; minus 
           (4) pupil units according to subdivision 1 for resident 
        pupils attending other districts for which general education aid 
        adjustments are made according to section 127A.47, subdivision 7.
        whom the district or charter school pays tuition under section 
        123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
        subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
        125A.65, minus 
           (3) pupil units according to subdivision 1 for whom the 
        district or charter school receives tuition under section 
        123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
        subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 
        125A.65. 
           (b) Adjusted marginal cost pupil units means the sum of .9 
        times the pupil units defined in paragraph (a) for the current 
        school year and .1 times the pupil units defined in paragraph 
        (a) for the previous school year. 
           Sec. 11.  Minnesota Statutes 1998, section 126C.05, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RESIDENT PUPIL UNITS.] (a) Resident pupil units 
        for a district means the number of pupil units according to 
        subdivision 1 residing in the district. 
           (b) Resident marginal cost pupil units means the sum of .9 
        times the pupil units defined in paragraph (a) for the current 
        year and .1 times the pupil units defined in paragraph (a) for 
        the previous school year. 
           Sec. 12.  Minnesota Statutes 1998, section 126C.05, 
        subdivision 7, is amended to read: 
           Subd. 7.  [PUPIL UNITS SERVED.] Pupil units served for a 
        district or charter school means the number of pupil units 
        according to subdivision 1 enrolled in the district or charter 
        school. 
           Sec. 13.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
        year 1999 2000 and thereafter, the general education revenue for 
        each district equals the sum of the district's basic revenue, 
        basic skills revenue, training and experience revenue, secondary 
        sparsity revenue, elementary sparsity revenue, transportation 
        sparsity revenue, total operating capital revenue, graduation 
        standards implementation revenue, equity revenue, referendum 
        offset adjustment, transition revenue, and supplemental revenue. 
           Sec. 14.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
        district equals the formula allowance times the resident pupil 
        units for the school year.  The formula allowance for fiscal 
        year 1997 is $3,505.  The formula allowance for fiscal year 1998 
        is $3,581 and.  The formula allowance for fiscal year 1999 and 
        fiscal year 2000 is $3,530.  The formula allowance for fiscal 
        year 2000 is $3,740.  The formula allowance for fiscal year 2001 
        and subsequent fiscal years is $3,597 $3,875. 
           Sec. 15.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
        thereafter, a school district's basic skills revenue equals the 
        sum of: 
           (1) compensatory revenue under subdivision 3; plus 
           (2) limited English proficiency revenue according to 
        section 124D.65, subdivision 5; plus 
           (3) $190 times the limited English proficiency pupil units 
        according to section 126C.05, subdivision 17; plus 
           (4) the lesser of:  (i) $22.50 times the number of adjusted 
        marginal cost pupil units in kindergarten to grade 8; or (ii) 
        the amount of district money provided to match basic skills 
        revenue for the purposes described in section 126C.15. 
           Sec. 16.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 5, is amended to read: 
           Subd. 5.  [TRAINING AND EXPERIENCE REVENUE.] The 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 
        $660 times the resident adjusted marginal cost pupil units for 
        the school year.  
           Sec. 17.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DEFINITIONS.] The definitions in this 
        subdivision apply only to subdivisions 7 and 8.  
           (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, and the school is 
        at least 19 miles from the next nearest school, the commissioner 
        must 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 served 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 served 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 55 percent of the attendance area plus the distance in 
        miles, according to the usually traveled routes, between the 
        high school and the nearest high school.  For a district in 
        which there is located land defined in section 84A.01, 84A.20, 
        or 84A.31, the distance in miles is the sum of: 
           (1) the square root of one-half of the attendance area; and 
           (2) the distance from the border of the district to 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 served 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 pupils served in kindergarten 
        through grade 6 multiplied by the ratio of seven to the number 
        of grades in the elementary school.  For a building in a 
        district where the nearest elementary school is at least 65 
        miles distant, pupils served must be used to determine average 
        daily membership. 
           Sec. 18.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 7, is amended to read: 
           Subd. 7.  [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 pupils served 
        in 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 1.5 or the quotient obtained by dividing 
        the isolation index minus 23 by ten. 
           (b) A newly formed district that is the result of districts 
        combining under the cooperation and combination program or 
        consolidating under section 123A.48 must 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 
        districts had in the year prior to consolidation, increased for 
        any subsequent changes in the secondary sparsity formula. 
           Sec. 19.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ELEMENTARY SPARSITY REVENUE.] A district's 
        elementary sparsity revenue equals the sum of the following 
        amounts for each qualifying elementary school in the district:  
           (1) the formula allowance for the year, multiplied by 
           (2) the elementary average daily membership of pupils 
        served in the school, multiplied by 
           (3) the quotient obtained by dividing 140 minus the 
        elementary average daily membership by 140 plus the average 
        daily membership. 
           Sec. 20.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 9, is amended to read: 
           Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
        supplemental revenue allowance for fiscal year 1994 and later 
        fiscal years equals the district's supplemental revenue for 
        fiscal year 1993 divided by the district's 1992-1993 resident 
        pupil units. 
           (b) A district's supplemental revenue allowance is reduced 
        for fiscal year 1995 and later according to subdivision 12. 
           (c) A district's supplemental revenue equals the 
        supplemental revenue allowance, if any, times its resident 
        adjusted marginal cost pupil units for that year.  
           (d) A district may cancel its supplemental revenue by 
        notifying the commissioner of education prior to June 30, 1994.  
        A district that is reorganizing under section 122A.35, 123A.46, 
        or 123A.48 may cancel its supplemental revenue by notifying the 
        commissioner of children, families, and learning before July 1 
        of the year of the reorganization.  If a district cancels its 
        supplemental revenue according to this paragraph, its 
        supplemental revenue allowance for fiscal year 1993 for purposes 
        of subdivision 12 and section 124A.03, subdivision 3b, equals 
        zero. 
           Sec. 21.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 10, is amended to read: 
           Subd. 10.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
        revenue, a district may levy an amount not more than the product 
        of its supplemental revenue for the school year times the lesser 
        of one or the ratio of its adjusted net tax capacity per 
        resident adjusted marginal cost pupil unit to $10,000 $8,404. 
           Sec. 22.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [SUPPLEMENTAL REVENUE REDUCTION.] If a 
        district's ratio of 1992 adjusted net tax capacity divided by 
        1994-1995 actual pupil units to $9,025 is less than or equal to 
        .25, then the difference under subdivision 12, clause (2), is 
        equal to $0 for purposes of computing the district's 
        supplemental revenue under subdivision 9. 
           Sec. 23.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 13, is amended to read: 
           Subd. 13.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
        fiscal year 1999 2000 and thereafter, total operating capital 
        revenue for a district equals the amount determined under 
        paragraph (b) or (c), plus $68 times the resident adjusted 
        marginal cost pupil units for the school year.  The revenue must 
        be placed in a reserved account in the general fund and may only 
        be used according to subdivision 14. 
           (b) For fiscal years 1999 2000 and later, capital revenue 
        for a district equals $100 times the district's maintenance cost 
        index times its resident adjusted marginal cost pupil units for 
        the school year. 
           (c) For 1996 and later fiscal years, the previous formula 
        revenue for a district equals $128 times its resident pupil 
        units for the school year. 
           (d) For fiscal years 1998 2000 and later, the revenue for a 
        district that operates a program under section 124D.128, is 
        increased by an amount equal to $30 times the number of resident 
        marginal cost pupil units served at the site where the program 
        is implemented. 
           Sec. 24.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 14, is amended to read: 
           Subd. 14.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
        operating capital 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; 
           (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 296A.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 123B.51, subdivision 4; 
           (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; 
           (15) to purchase or lease interactive telecommunications 
        equipment; 
           (16) by board resolution, to transfer money into the debt 
        redemption fund to:  (i) pay the amounts needed to meet, when 
        due, principal and interest payments on certain obligations 
        issued according to chapter 475; or (ii) pay principal and 
        interest on debt service loans or capital loans according to 
        section 126C.70; 
           (17) to pay capital expenditure equipment-related operating 
        capital-related assessments of any entity formed under a 
        cooperative agreement between two or more districts; 
           (18) to purchase or lease computers and related materials, 
        copying machines, telecommunications equipment, and other 
        noninstructional equipment; 
           (19) to purchase or lease assistive technology or equipment 
        for instructional programs; 
           (20) to purchase textbooks; 
           (21) to purchase new and replacement library books or 
        technology; 
           (22) to purchase vehicles; 
           (23) to purchase or lease telecommunications equipment, 
        computers, and related equipment for integrated information 
        management systems for: 
           (i) managing and reporting learner outcome information for 
        all students under a results-oriented graduation rule; 
           (ii) managing student assessment, services, and achievement 
        information required for students with individual education 
        plans; and 
           (iii) other classroom information management needs; and 
           (24) to pay personnel costs directly related to the 
        acquisition, operation, and maintenance of telecommunications 
        systems, computers, related equipment, and network and 
        applications software. 
           Sec. 25.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 18, is amended to read: 
           Subd. 18.  [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 
        A district's transportation sparsity allowance equals the 
        greater of zero or the result of the following computation: 
           (i) Multiply the formula allowance according to subdivision 
        2, by .1469. 
           (ii) Multiply the result in clause (i) by the district's 
        sparsity index raised to the 26/100 power. 
           (iii) Multiply the result in clause (ii) by the district's 
        density index raised to the 13/100 power. 
           (iv) Multiply the formula allowance according to 
        subdivision 2, by .0485. 
           (v) Subtract the result in clause (iv) from the result in 
        clause (iii). 
           (b) Transportation sparsity revenue is equal to the 
        transportation sparsity allowance times the resident adjusted 
        marginal cost pupil units. 
           Sec. 26.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 19, is amended to read: 
           Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
        transportation transition allowance for fiscal year 1998 and 
        later equals the result of the following: 
           (1) if the result in subdivision 18, paragraph (a), clause 
        (iii), for fiscal year 1998 is less than the fiscal year 1996 
        base allowance, the transportation transition allowance equals 
        the fiscal year 1996 base allowance minus the result in 
        subdivision 18, paragraph (a), clause (iii); or 
           (2) if the result in subdivision 18, paragraph (a), clause 
        (iii), for fiscal year 1998 and later is greater than or equal 
        to the fiscal year 1996 base allowance, the transportation 
        transition allowance equals zero. 
           (b) A district's compensatory transition allowance equals 
        the greater of zero or the difference between:  
           (1) the amount of compensatory revenue the district would 
        have received under Minnesota Statutes 1996, section 124A.22, 
        subdivision 3, for fiscal year 1998 computed using a basic 
        formula allowance of $3,281; and 
           (2) the amount the district receives under subdivision 3; 
        divided by 
           (3) the district's actual pupil units for fiscal year 1998. 
           (c) A district's cooperation transition allowance for 
        fiscal year 2001 and later equals the greater of zero or the 
        difference between:  
           (1) $25,000; and 
           (2) $67 times the district's resident pupil units for 
        fiscal year 2001 divided by; 
           (3) the district's resident pupil units for fiscal year 
        2001. 
           (d) A district's transition allowance for fiscal year years 
        1999 and 2000 is equal to the sum of its transportation 
        transition allowance and its compensatory transition allowance.  
        A district's transition allowance for fiscal year 2000 2001 and 
        thereafter is equal to the sum of its transportation transition 
        allowance, its compensatory transition allowance, and its 
        cooperation transition allowance. 
           Sec. 27.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 20, is amended to read: 
           Subd. 20.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
        transition revenue adjustment equals the district's transition 
        allowance times the resident adjusted marginal cost pupil units 
        for the school year. 
           Sec. 28.  Minnesota Statutes 1998, section 126C.10, 
        subdivision 21, is amended to read: 
           Subd. 21.  [TRANSITION LEVY ADJUSTMENT.] A district's 
        general education levy shall be adjusted by an amount equal to 
        the district's transition revenue times the lesser of 1 or the 
        ratio of its adjusted net tax capacity per resident adjusted 
        marginal cost pupil unit to $10,000 $8,404. 
           Sec. 29.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 23.  [REFERENDUM OFFSET ADJUSTMENT.] A district that 
        qualifies for the referendum allowance reduction under section 
        126C.17, subdivision 12, and whose referendum allowance under 
        section 126C.17, subdivision 1, as adjusted under section 
        126C.17, subdivisions 2 and 12, does not exceed the referendum 
        allowance limit under section 126C.17, subdivision 2, clause 
        (2), shall receive a referendum offset adjustment.  In fiscal 
        year 2000 and thereafter, the referendum offset adjustment is 
        equal to $25 per resident pupil unit. 
           Sec. 30.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 24.  [EQUITY REVENUE.] (a) A school district 
        qualifies for equity revenue if the school district's adjusted 
        marginal cost pupil unit amount of basic revenue, supplemental 
        revenue, transition revenue, and referendum revenue is less than 
        the 90th percentile of school districts in its equity region for 
        those revenue categories and the school district's 
        administrative offices are not located in a city of the first 
        class on July 1, 1999. 
           (b) Equity revenue for a qualifying district that receives 
        referendum revenue under section 126C.17, subdivision 4, equals 
        the product of (1) the district's adjusted marginal cost pupil 
        units for that year; times (2) the sum of (i) $10, plus (ii) 
        $30, times the school district's equity index computed under 
        section 126C.10, subdivision 6. 
           (c) Equity revenue for a qualifying district that does not 
        receive referendum revenue under section 126C.17, subdivision 4, 
        equals the product of the district's adjusted marginal cost 
        pupil units for that year times $10. 
           Sec. 31.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [REGIONAL EQUITY GAP.] The regional equity gap 
        equals the difference between the fifth and the 90th percentile 
        of adjusted general revenue per marginal cost pupil unit. 
           Sec. 32.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 26.  [DISTRICT EQUITY GAP.] A district's equity gap 
        equals the greater of zero or the difference between the 
        district's adjusted general revenue and the regional 90th 
        percentile of adjusted general revenue per marginal cost pupil 
        unit. 
           Sec. 33.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 27.  [DISTRICT EQUITY INDEX.] A district's equity 
        index equals the ratio of the sum of the district equity gap 
        amount to the regional equity gap amount. 
           Sec. 34.  Minnesota Statutes 1998, section 126C.10, is 
        amended by adding a subdivision to read: 
           Subd. 28.  [EQUITY REGION.] For the purposes of computing 
        equity revenue under subdivision 23, a district whose 
        administrative offices on July 1, 1999, is located in Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county is 
        part of the metro equity region.  Districts whose administrative 
        offices on July 1, 1999, are not located in Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, or Washington county are part 
        of the rural equity region. 
           Sec. 35.  Minnesota Statutes 1998, section 126C.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE.] Of a district's general 
        education revenue an amount equal to the sum of the number of 
        elementary fund balance pupils in average daily membership 
        defined in section 126C.05, subdivision 5, and one-half of the 
        number of kindergarten fund balance pupils in average daily 
        membership as defined in section 126C.05, subdivision 5, times 
        .06 for fiscal year 1995 and thereafter times the formula 
        allowance must be reserved according to this section. for fiscal 
        year 2000 and thereafter each school district shall reserve an 
        amount equal to the formula allowance multiplied by the 
        following calculation: 
           (1) the sum of adjusted marginal cost pupil units in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in kindergarten times .057; plus 
           (2) the sum of adjusted marginal cost pupil units in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 1 to 3 times .115; plus 
           (3) the sum of adjusted marginal cost pupil units in 
        average daily membership, according to section 126C.05, 
        subdivision 5, in grades 4 to 6 times .06. 
           Sec. 36.  Minnesota Statutes 1998, section 126C.12, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
        to either paragraph (b) or (c). 
           (b) Revenue must 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.  
           (c) 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-to-learner ratios in 
        other grades as a result of reducing instructor-to-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 124D.67.  A 
        district may use a portion of the revenue reserved under this 
        section to employ up to the same number of full-time equivalent 
        education assistants or aides as the district employed during 
        the 1992-1993 school year under Minnesota Statutes 1992, section 
        124.331, subdivision 2. 
           Sec. 37.  Minnesota Statutes 1998, section 126C.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
        commissioner must 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 must be a rate, rounded 
        up to the nearest hundredth 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 must be the rate that raises $1,385,500,000 for fiscal year 
        1999, $1,325,500,000 for fiscal year 2000, and $1,387,100,000 
        $1,330,000,000 for fiscal year 2001, 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.  If the levy target for 
        fiscal year 1999 or fiscal year 2000 is changed by another law 
        enacted during the 1997 or 1998 session, the commissioner shall 
        reduce the general education levy target in this section by the 
        amount of the reduction in the enacted law. 
           Sec. 38.  Minnesota Statutes 1998, section 126C.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
        education revenue, excluding transition revenue and supplemental 
        revenue, a district may levy an amount not to exceed the general 
        education tax rate times the adjusted net tax capacity of the 
        district for the preceding year.  If the amount of the general 
        education levy would exceed the general education revenue, 
        excluding transition revenue and supplemental revenue, the 
        general education levy must be determined according to 
        subdivision 3.  
           Sec. 39.  Minnesota Statutes 1998, section 126C.15, is 
        amended to read: 
           126C.15 [COMPENSATORY EDUCATION REVENUE.] 
           Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
        education basic skills revenue under section 126C.10, 
        subdivision 3 4, and the portion of the transition revenue 
        adjustment under section 126C.10, subdivision 20, attributable 
        to the compensatory transition allowance under section 126C.10, 
        subdivision 19, paragraph (b), must be reserved and used to meet 
        the educational needs of pupils who enroll under-prepared to 
        learn and whose progress toward meeting state or local content 
        or performance standards is below the level that is appropriate 
        for learners of their age.  Any of the following may be provided 
        to meet these learners' needs: 
           (1) direct instructional services under the assurance of 
        mastery program according to section 124D.66; 
           (2) remedial instruction in reading, language arts, 
        mathematics, other content areas, or study skills to improve the 
        achievement level of these learners; 
           (3) additional teachers and teacher aides to provide more 
        individualized instruction to these learners through individual 
        tutoring, lower instructor-to-learner ratios, or team teaching; 
           (4) a longer school day or week during the regular school 
        year or through a summer program that may be offered directly by 
        the site or under a performance-based contract with a 
        community-based organization; 
           (5) comprehensive and ongoing staff development consistent 
        with district and site plans according to section 122A.60, for 
        teachers, teacher aides, principals, and other personnel to 
        improve their ability to identify the needs of these learners 
        and provide appropriate remediation, intervention, 
        accommodations, or modifications; 
           (6) instructional materials and technology appropriate for 
        meeting the individual needs of these learners; 
           (7) programs to reduce truancy, encourage completion of 
        high school, enhance self-concept, provide health services, 
        provide nutrition services, provide a safe and secure learning 
        environment, provide coordination for pupils receiving services 
        from other governmental agencies, provide psychological services 
        to determine the level of social, emotional, cognitive, and 
        intellectual development, and provide counseling services, 
        guidance services, and social work services; 
           (8) bilingual programs, bicultural programs, and programs 
        for learners of limited English proficiency; 
           (9) all day kindergarten; 
           (10) extended school day and extended school year programs; 
           (11) substantial parent involvement in developing and 
        implementing remedial education or intervention plans for a 
        learner, including learning contracts between the school, the 
        learner, and the parent that establish achievement goals and 
        responsibilities of the learner and the learner's parent or 
        guardian; and 
           (12) other methods to increase achievement, as needed.  
           Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
        allocate its compensatory revenue to each school building in the 
        district where the children who have generated the revenue are 
        served. 
           (b) Notwithstanding paragraph (a), for fiscal years 1999, 
        and 2000, and 2001, upon approval by the commissioner, a 
        district may allocate up to five percent of the amount of 
        compensatory revenue that the district would have received under 
        Minnesota Statutes 1996, section 126C.10 124A.22, subdivision 3, 
        for fiscal year 1998, computed using a basic formula allowance 
        of $3,581 to school sites according to a plan adopted by the 
        school board. 
           (c) For the purposes of this section and section 126C.05, 
        subdivision 3, "building" means education site as defined in 
        section 123B.04, subdivision 1. 
           (d) If the pupil is served at a site other than one owned 
        and operated by the district, the revenue shall be paid to the 
        district and used for services for pupils who generate the 
        revenue. 
           Subd. 3.  [RECOMMENDATION.] A school site decision-making 
        team, as defined in section 123B.04, subdivision 3, paragraph 
        (a), or the instruction and curriculum advisory committee under 
        section 120B.11, if the school has no school site decision team, 
        shall recommend how the compensatory education revenue will be 
        used to carry out the purpose of this section. 
           Subd. 4.  [SEPARATE ACCOUNTS.] Each district that 
        receives compensatory education basic skills revenue shall 
        maintain separate accounts to identify expenditures for salaries 
        and programs related to basic skills revenue. 
           Subd. 5.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
        that receives compensatory education basic skills revenue must 
        submit a report identifying the expenditures it incurred to meet 
        the needs of eligible learners under subdivision 1.  The report 
        must conform to uniform financial and reporting standards 
        established for this purpose. 
           Sec. 40.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REFERENDUM ALLOWANCE.] A district's 
        referendum revenue allowance equals the referendum revenue 
        authority for that year divided by its resident marginal cost 
        pupil units for that school year. 
           Sec. 41.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
        subdivision 1, a district's referendum allowance must not exceed 
        the greater of:  
           (1) the district's referendum allowance for fiscal year 
        1994; 
           (2) 25 percent of the formula allowance minus $300 for 
        fiscal year 1997 and later; or 
           (3) for a newly reorganized district created after July 1, 
        1994, the sum of the referendum revenue authority for the 
        reorganizing districts for the fiscal year preceding the 
        reorganization, divided by the sum of the resident marginal cost 
        pupil units of the reorganizing districts for the fiscal year 
        preceding the reorganization. 
           Sec. 42.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TOTAL REFERENDUM REVENUE.] The total referendum 
        revenue for each district equals the district's referendum 
        allowance times the resident marginal cost pupil units for the 
        school year. 
           Sec. 43.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REFERENDUM EQUALIZATION REVENUE.] (a) A 
        district's referendum equalization revenue equals $350 the 
        referendum equalization allowance times the district's resident 
        marginal cost pupil units for that year.  
           (b) The referendum equalization allowance equals $350 for 
        fiscal year 2000 and $415 for fiscal year 2001 and later. 
           (c) Referendum equalization revenue must not exceed a 
        district's total referendum revenue for that year. 
           Sec. 44.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
        year 1999 and thereafter, A district's referendum equalization 
        levy for a referendum levied against the referendum market value 
        of all taxable property as defined in section 126C.01, 
        subdivision 3, equals the district's referendum equalization 
        revenue times the lesser of one or the ratio of the district's 
        referendum market value per resident marginal cost pupil unit to 
        $476,000. 
           (b) For fiscal year 1999 and thereafter, A district's 
        referendum equalization levy for a referendum levied against the 
        net tax capacity of all taxable property equals the district's 
        referendum equalization revenue times the lesser of one or the 
        ratio of the district's adjusted net tax capacity per resident 
        marginal cost pupil unit to $10,000 $8,404. 
           Sec. 45.  Minnesota Statutes 1998, section 126C.17, 
        subdivision 9, is amended to read: 
           Subd. 9.  [REFERENDUM REVENUE.] (a) The revenue authorized 
        by section 126C.10, subdivision 1, may be increased in the 
        amount approved by the voters of the district at a referendum 
        called for the purpose.  The referendum may be called by the 
        board or shall be called by the board upon written petition of 
        qualified voters of the district.  The referendum must be 
        conducted one or two calendar years before the increased levy 
        authority, if approved, first becomes payable.  Only one 
        election to approve an increase may be held in a calendar year.  
        Unless the referendum is conducted by mail under paragraph (g), 
        the referendum must be held on the first Tuesday after the first 
        Monday in November.  The ballot must state the maximum amount of 
        the increased revenue per resident marginal cost pupil unit, the 
        estimated referendum tax rate as a percentage of market value in 
        the first year it is to be levied, and that the revenue must be 
        used to finance school operations.  The ballot may state a 
        schedule, determined by the board, of increased revenue per 
        resident pupil units that differs from year to year over the 
        number of years for which the increased revenue is authorized.  
        If the ballot contains a schedule showing different amounts, it 
        must also indicate the estimated referendum tax rate as a 
        percent of market value for the amount specified for the first 
        year and for the maximum amount specified in the schedule.  The 
        ballot may state that existing referendum levy authority is 
        expiring.  In this case, the ballot may also compare the 
        proposed levy authority to the existing expiring levy authority, 
        and express the proposed increase as the amount, if any, over 
        the expiring referendum levy authority.  The ballot must 
        designate the specific number of years, not to exceed ten, for 
        which the referendum authorization applies.  The notice required 
        under section 275.60 may be modified to read, in cases of 
        renewing existing levies: 
           "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
           FOR A PROPERTY TAX INCREASE." 
           The ballot may contain a textual portion with the 
        information required in this subdivision and a question stating 
        substantially the following:  
           "Shall the increase in the revenue proposed by (petition 
        to) the board of ........., School District No. .., be approved?"
           If approved, an amount equal to the approved revenue per 
        resident marginal cost pupil unit times the resident marginal 
        cost pupil units for the school year beginning in the year after 
        the levy is certified shall be authorized for certification for 
        the number of years approved, if applicable, or until revoked or 
        reduced by the voters of the district at a subsequent referendum.
           (b) The board must prepare and deliver by first class mail 
        at least 15 days but no more than 30 days before the day of the 
        referendum to each taxpayer a notice of the referendum and the 
        proposed revenue increase.  The board need not mail more than 
        one notice to any taxpayer.  For the purpose of giving mailed 
        notice under this subdivision, owners must be those shown to be 
        owners on the records of the county auditor or, in any county 
        where tax statements are mailed by the county treasurer, on the 
        records of the county treasurer.  Every property owner whose 
        name does not appear on the records of the county auditor or the 
        county treasurer is deemed to have waived this mailed notice 
        unless the owner has requested in writing that the county 
        auditor or county treasurer, as the case may be, include the 
        name on the records for this purpose.  The notice must project 
        the anticipated amount of tax increase in annual dollars and 
        annual percentage for typical residential homesteads, 
        agricultural homesteads, apartments, and commercial-industrial 
        property within the school district. 
           The notice for a referendum may state that an existing 
        referendum levy is expiring and project the anticipated amount 
        of increase over the existing referendum levy in the first year, 
        if any, in annual dollars and annual percentage for typical 
        residential homesteads, agricultural homesteads, apartments, and 
        commercial-industrial property within the district. 
           The notice must include the following statement:  "Passage 
        of this referendum will result in an increase in your property 
        taxes."  However, in cases of renewing existing levies, the 
        notice may include the following statement:  "Passage of this 
        referendum may result in an increase in your property taxes." 
           (c) A referendum on the question of revoking or reducing 
        the increased revenue amount authorized pursuant to paragraph 
        (a) may be called by the board and shall be called by the board 
        upon the written petition of qualified voters of the district.  
        A referendum to revoke or reduce the levy amount must be based 
        upon the dollar amount, local tax rate, or amount per resident 
        marginal cost pupil unit, that was stated to be the basis for 
        the initial authorization.  Revenue approved by the voters of 
        the district pursuant to paragraph (a) must be received at least 
        once before it is subject to a referendum on its revocation or 
        reduction for subsequent years.  Only one revocation or 
        reduction referendum may be held to revoke or reduce referendum 
        revenue for any specific year and for years thereafter. 
           (d) A petition authorized by paragraph (a) or (c) is 
        effective if signed by a number of qualified voters in excess of 
        15 percent of the registered voters of the district on the day 
        the petition is filed with the board.  A referendum invoked by 
        petition must be held on the date specified in paragraph (a). 
           (e) The approval of 50 percent plus one of those voting on 
        the question is required to pass a referendum authorized by this 
        subdivision. 
           (f) At least 15 days before the day of the referendum, the 
        district must submit a copy of the notice required under 
        paragraph (b) to the commissioner and to the county auditor of 
        each county in which the district is located.  Within 15 days 
        after the results of the referendum have been certified by the 
        board, or in the case of a recount, the certification of the 
        results of the recount by the canvassing board, the district 
        must notify the commissioner of the results of the referendum. 
           (g) Except for a referendum held under subdivision 11, any 
        referendum under this section held on a day other than the first 
        Tuesday after the first Monday in November must be conducted by 
        mail in accordance with section 204B.46.  Notwithstanding 
        paragraph (b) to the contrary, in the case of a referendum 
        conducted by mail under this paragraph, the notice required by 
        paragraph (b) must be prepared and delivered by first class mail 
        at least 20 days before the referendum. 
           Sec. 46.  Minnesota Statutes 1998, section 126C.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
        payable in 1996, 1997, 1998, and 1999 only, A 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.  
           Sec. 47.  Minnesota Statutes 1998, section 127A.44, 
        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 section 126C.13; 
           (2) secondary vocational aid authorized in section 
        124D.453; 
           (3) special education aid authorized in sections 125A.75 
        and 125A.76; 
           (4) school-to-work career and technical program aid for 
        children with a disability authorized in section 124D.454; 
           (5) aid for pupils of limited English proficiency 
        authorized in section 124D.65; 
           (6) transportation aid authorized in section 123B.92; 
           (7) (6) community education programs aid authorized in 
        section 124D.20; 
           (8) (7) adult education aid authorized in section 124D.52; 
           (9) (8) early childhood family education aid authorized in 
        section 124D.135; 
           (10) (9) capital expenditure aid authorized in section 
        123B.57; 
           (11) (10) school district cooperation aid authorized in 
        section 126C.22; 
           (12) assurance of mastery aid according to section 124D.67; 
           (13) (11) homestead and agricultural credit aid, disparity 
        credit and aid, and changes to credits for prior year 
        adjustments according to section 273.1398, subdivisions 2, 3, 4, 
        and 7; 
           (14) (12) attached machinery aid authorized in section 
        273.138, subdivision 3; 
           (15) alternative delivery aid authorized in section 
        125A.78; 
           (16) special education equalization aid authorized in 
        section 125A.77; 
           (17) (13) special education excess cost aid authorized in 
        section 125A.79; and 
           (18) (14) learning readiness aid authorized in section 
        124D.16; and 
           (19) cooperation-combination aid authorized in section 
        123A.39, subdivision 3. 
           (b) The commissioner 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. 48.  Minnesota Statutes 1998, section 127A.47, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AID TO SERVING DISTRICT OF RESIDENCE.] (a) 
        Unless otherwise specifically provided by law, general education 
        aid must be paid to the district of residence unless otherwise 
        specifically provided by law according to this subdivision.  
           (b) Except as provided in paragraph (c), general education 
        aid must be paid to the serving district.  
           (c) If the resident district pays tuition for a pupil under 
        section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
        123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 
        125A.51, or 125A.65, general education aid, excluding basic 
        skills revenue under section 126C.10, subdivision 4, must be 
        paid to the resident district. 
           Sec. 49.  Minnesota Statutes 1998, section 127A.47, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
        education aid for districts must be adjusted for each pupil 
        attending a nonresident district under sections 123A.05 to 
        123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  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 basic skills revenue referendum equalization aid 
        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 must be increased 
        by an amount equal to the general education revenue exclusive of 
        basic skills revenue referendum equalization aid 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 must 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 125A.02, or a 
        pupil, as defined in section 125A.51, who is enrolled in a 
        program listed in this subdivision.  The tuition must 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 revenue and special education aid but not including any 
        amount for transportation, attributable to that pupil, that is 
        received by the district providing special instruction and 
        services. 
           (e) An area learning center operated by a service 
        cooperative, 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 125A.02 or 125A.51. 
           Sec. 50.  Minnesota Statutes 1998, section 127A.47, 
        subdivision 8, is amended to read: 
           Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
        for districts must be adjusted for each pupil attending a 
        charter school under section 124D.10.  The adjustments must be 
        made according to this subdivision. 
           (b) General education aid paid to a resident district must 
        be reduced by an amount equal to the general education revenue 
        exclusive of basic skills revenue. 
           (c) General education aid paid to a district in which a 
        charter school not providing transportation according to section 
        124D.10, subdivision 16, is located must be increased by an 
        amount equal to the product of:  (1) the sum of an amount equal 
        to the product of the formula allowance according to section 
        126C.10, subdivision 2, times .0485, plus the transportation 
        sparsity allowance for the district, plus the transportation 
        transition allowance for the district; times (2) the pupil units 
        attributable to the pupil.  
           (d) If the amount of the reduction to be made from the 
        general education aid of the resident district is greater than 
        the amount of general education aid otherwise due the district, 
        the excess reduction must be made from other state aids due the 
        district. 
           Sec. 51.  Minnesota Statutes 1998, section 127A.49, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
        sections 270.07, 375.192, or otherwise, the net tax capacity of 
        any district for any taxable year is changed after the taxes for 
        that year have been spread by the county auditor and the local 
        tax rate as determined by the county auditor based upon the 
        original net tax capacity is applied upon the changed net tax 
        capacities, the county auditor shall, prior to February 1 of 
        each year, certify to the commissioner of children, families, 
        and learning the amount of any resulting net revenue loss that 
        accrued to the district during the preceding year.  Each year, 
        the commissioner shall pay an abatement adjustment to the 
        district in an amount calculated according to the provisions of 
        this subdivision.  This amount shall be deducted from the amount 
        of the levy authorized by section 126C.46.  The amount of the 
        abatement adjustment must be the product of:  
           (1) the net revenue loss as certified by the county 
        auditor, times 
           (2) the ratio of:  
           (i) the sum of the amounts of the district's certified levy 
        in the preceding year according to the following:  
           (A) section 126C.13 if the district received general 
        education aid according to that section for the second preceding 
        year; 
           (B) section 124.226, subdivisions 1 and 4, if the district 
        received transportation aid according to section 123B.92 for the 
        second preceding year; 
           (C) section 124.243, if the district received capital 
        expenditure facilities aid according to that section for the 
        second preceding year; 
           (D) section 124.244, if the district received capital 
        expenditure equipment aid according to that section for the 
        second preceding year; 
           (E) section 123B.57, if the district received health and 
        safety aid according to that section for the second preceding 
        year; 
           (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
        district received aid for community education programs according 
        to any of those sections for the second preceding year; 
           (G) (D) section 124D.135, subdivision 3, if the district 
        received early childhood family education aid according to 
        section 124D.135 for the second preceding year; and 
           (H) section 125A.77, subdivision 3, if the district 
        received special education levy equalization aid according to 
        that section for the second preceding year; 
           (I) (E) section 126C.17, subdivision 6, if the district 
        received referendum equalization aid according to that section 
        for the second preceding year; and 
           (J) section 124A.22, subdivision 4a, if the district 
        received training and experience aid according to that section 
        for the second preceding year; to 
           (ii) the total amount of the district's certified levy in 
        the preceding October December, plus or minus auditor's 
        adjustments. 
           Sec. 52.  Minnesota Statutes 1998, section 127A.49, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
        tax increment is made to a district pursuant to section 469.176, 
        subdivision 2, or upon decertification of a tax increment 
        district, the school district's aid and levy limitations must be 
        adjusted for the fiscal year in which the excess tax increment 
        is paid under the provisions of this subdivision. 
           (b) An amount must be subtracted from the district's aid 
        for the current fiscal year equal to the product of: 
           (1) the amount of the payment of excess tax increment to 
        the district, times 
           (2) the ratio of: 
           (i) the sum of the amounts of the district's certified levy 
        for the fiscal year in which the excess tax increment is paid 
        according to the following: 
           (A) section 126C.13, if the district received general 
        education aid according to that section for the second preceding 
        year; 
           (B) section 124.226, subdivisions 1 and 4, if the district 
        received transportation aid according to section 123B.92 for the 
        second preceding year; 
           (C) section 124.243, if the district received capital 
        expenditure facilities aid according to that section for the 
        second preceding year; 
           (D) section 124.244, if the district received capital 
        expenditure equipment aid according to that section for the 
        second preceding year; 
           (E) section 123B.57, if the district received health and 
        safety aid according to that section for the second preceding 
        year; 
           (F) (C) sections 124D.20, 124D.21, and 124D.56, if the 
        district received aid for community education programs according 
        to any of those sections for the second preceding year; 
           (G) (D) section 124D.135, subdivision 3, if the district 
        received early childhood family education aid according to 
        section 124D.135 for the second preceding year; and 
           (H) section 125A.77, subdivision 3, if the district 
        received special education levy equalization aid according to 
        that section for the second preceding year; 
           (I) (E) section 126C.17, subdivision 6, if the district 
        received referendum equalization aid according to that section 
        for the second preceding year; and 
           (J) section 124A.22, subdivision 4a, if the district 
        received training and experience aid according to that section 
        for the second preceding year; to 
           (ii) the total amount of the district's certified levy for 
        the fiscal year, plus or minus auditor's adjustments. 
           (c) An amount must be subtracted from the school district's 
        levy limitation for the next levy certified equal to the 
        difference between: 
           (1) the amount of the distribution of excess increment; and 
           (2) the amount subtracted from aid pursuant to clause (a). 
           If the aid and levy reductions required by this subdivision 
        cannot be made to the aid for the fiscal year specified or to 
        the levy specified, the reductions must be made from aid for 
        subsequent fiscal years, and from subsequent levies.  The school 
        district must use the payment of excess tax increment to replace 
        the aid and levy revenue reduced under this subdivision. 
           (d) This subdivision applies only to the total amount of 
        excess increments received by a district for a calendar year 
        that exceeds $25,000. 
           Sec. 53.  Minnesota Statutes 1998, section 127A.51, is 
        amended to read: 
           127A.51 [STATEWIDE AVERAGE REVENUE.] 
           By October 1 of each year the commissioner must estimate 
        the statewide average adjusted general revenue per resident 
        adjusted marginal cost pupil unit and the disparity in adjusted 
        general revenue among pupils and districts by computing the 
        ratio of the ninety-fifth percentile to the fifth percentile of 
        adjusted general revenue.  The commissioner must provide that 
        information to all districts. 
           If the disparity in adjusted general revenue as measured by 
        the ratio of the ninety-fifth percentile to the fifth percentile 
        increases in any year, the commissioner shall recommend to the 
        legislature options for change in the general education formula 
        that will limit the disparity in adjusted general revenue to no 
        more than the disparity for the previous school year.  The 
        commissioner must submit the recommended options to the 
        education committees of the legislature by January 15. 
           For purposes of this section, adjusted general revenue 
        means the sum of basic revenue under section 126C.10, 
        subdivision 2; supplemental revenue under section 126C.10, 
        subdivisions 9 and 12; transition revenue under section 126C.10, 
        subdivision 20; and referendum revenue under section 126C.17. 
           Sec. 54.  Laws 1992, chapter 499, article 7, section 31, as 
        amended by Laws 1998, chapter 398, article 1, section 39, is 
        amended to read: 
           Sec. 31.  [REPEALER.] 
           Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
        124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
        124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
        Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
        23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
        124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
        124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
        1; and 124A.29, subdivision 1, are repealed effective June 30, 
        2001 2002; Laws 1991, chapter 265, article 7, section 35, is 
        repealed. 
           Sec. 55.  Laws 1996, chapter 412, article 1, section 35, is 
        amended to read: 
           Sec. 35.  [REPEALER.] 
           Laws 1993, chapter 224, article 1, section 34, subdivision 
        1, is repealed.  Section 8 is repealed July 1, 1999. 
           Sec. 56.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 1, is amended to read: 
           Subdivision 1.  [REVENUE CONVERSION.] For taxes payable in 
        1998 and 1999, the commissioner of children, families, and 
        learning shall adjust each school district's revenue authority 
        that is established as a rate times net tax capacity or adjusted 
        net tax capacity under Minnesota Statutes, chapters 124 and 124A 
        120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
        multiplying each revenue amount by the ratio of the statewide 
        tax capacity as calculated using the class rates in effect for 
        assessment year 1996 to the statewide tax capacity using the 
        class rates for that assessment year.  Tax rates for referendum 
        revenues according to Minnesota Statutes, section 126C.17, and 
        operating debt levies according to Minnesota Statutes, section 
        126C.42, established for an individual district under this 
        subdivision for taxes payable in 1999 shall remain in effect for 
        later years for which the revenue is authorized to be computed 
        as a rate times net tax capacity or adjusted net tax capacity. 
           Sec. 57.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 2, is amended to read: 
           Subd. 2.  [TAX RATE ADJUSTMENT.] For taxes payable in 1998 
        and 1999, the commissioner shall adjust each tax rate 
        established under Minnesota Statutes, chapters 124 and 124A 
        120B, 122A, 123A, 123B, 124D, 125A, 126C, and 127A, by 
        multiplying the rate by the ratio of the statewide tax capacity 
        as calculated using the class rates in effect for assessment 
        year 1996 to the statewide tax capacity using the class rates 
        for that assessment year. 
           Sec. 58.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 3, as amended by Laws 1998, 
        chapter 398, article 1, section 41, is amended to read: 
           Subd. 3.  [EQUALIZING FACTORS.] For taxes payable in 1998 
        and 1999, the commissioner shall adjust each equalizing factor 
        established using adjusted net tax capacity per actual pupil 
        unit under Minnesota Statutes, chapters 124 and 124A 120B, 122A, 
        123A, 123B, 124D, 125A, 126C, and 127A, by dividing the 
        equalizing factor by the ratio of the statewide tax capacity as 
        calculated using the class rates in effect for assessment year 
        1996 to the statewide tax capacity using the class rates for 
        that assessment year. 
           Sec. 59.  Laws 1997, First Special Session chapter 4, 
        article 1, section 61, subdivision 4, is amended to read: 
           Subd. 4.  [QUALIFYING RATE.] For taxes payable in 1998 and 
        1999, the commissioner shall adjust the qualifying rate under 
        Minnesota Statutes, section 124.95, subdivision 3, by 
        multiplying the qualifying rate times the ratio of the statewide 
        tax capacity, as calculated using the class rates in effect for 
        assessment year 1996, to the statewide tax capacity using the 
        class rates for that assessment year. 
           Sec. 60.  [FUND TRANSFERS.] 
           Subdivision 1.  [MONTICELLO.] Notwithstanding Minnesota 
        Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
        on June 30, 1999, independent school district No. 882, 
        Monticello, may permanently transfer up to $650,000 from its 
        debt redemption fund to its general fund. 
           Subd. 2.  [WHITE BEAR LAKE.] Notwithstanding Minnesota 
        Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, 
        on June 30, 1999, independent school district No. 624, White 
        Bear Lake, a district recently out of statutory operating debt, 
        may permanently transfer up to $650,000 from its debt redemption 
        fund to its general fund without making a levy reduction. 
           Subd. 3.  [OKLEE.] Notwithstanding Minnesota Statutes, 
        section 123B.53, on June 30, 1999, independent school district 
        No. 627, Oklee, may permanently transfer $44,300 from its debt 
        service fund to its general fund. 
           Subd. 4.  [DEER RIVER.] Notwithstanding Minnesota Statutes, 
        sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
        30, 1999, independent school district No. 317, Deer River, may 
        permanently transfer up to $315,000 from the debt redemption 
        fund to its building construction fund without making a levy 
        reduction. 
           Subd. 5.  [FARIBAULT.] Notwithstanding Minnesota Statutes, 
        section 123B.79, or other law, on or before June 30, 2000, 
        independent school district No. 656, Faribault, may transfer an 
        amount equal to the sale of the school district's excess 
        property from its capital operating account to the undesignated 
        general fund, not to exceed $1,000,000.  This transfer shall be 
        used for the purposes of defraying the district's operating debt 
        and shall not be subject to salary negotiations. 
           Subd. 6.  [WESTONKA.] Notwithstanding Minnesota Statutes, 
        sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 
        30, 1999, independent school district No. 277, Westonka, may 
        permanently transfer up to $235,000 from its debt redemption 
        fund to its general fund without making a levy reduction to help 
        the school district out of statutory operating debt. 
           Sec. 61.  [LEASE LEVY FOR ADMINISTRATIVE SPACE; EDEN 
        PRAIRIE.] 
           Each year, independent school district No. 272, Eden 
        Prairie, may levy the amount necessary to rent or lease 
        administrative space so that space previously used for 
        administrative purposes may be used for instructional purposes. 
           Sec. 62.  [OPERATING DEBT LEVY FOR TRACY SCHOOL DISTRICT.] 
           Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1999, 
        independent school district No. 417, Tracy, shall establish a 
        reserve account in the general fund.  The balance in this fund 
        shall equal the unreserved undesignated fund balance in the 
        operating funds of the district as of June 30, 1999. 
           Subd. 2.  [LEVY.] For taxes payable in each of the years 
        2000 to 2004, the district may levy an amount up to 20 percent 
        of the balance in the account on July 1, 1999.  The balance in 
        the account shall be adjusted each year by the amount of the 
        proceeds of the levy.  The proceeds of the 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. 
           Subd. 3.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
        Statutes, section 645.023, subdivision 1, paragraph (a), this 
        section is effective without local approval. 
           Sec. 63.  [DIRECTION TO THE DEPARTMENT.] 
           For fiscal year 2000 only, the department of children, 
        families, and learning shall make appropriate weighting 
        adjustments to fiscal year 1999 pupil units to reflect the 
        impact of Minnesota Statutes, section 126C.05, subdivision 5, 
        paragraph (b), and subdivision 6, paragraph (b). 
           Sec. 64.  [CONTINGENT FORMULA INCREASE.] 
           (a) If on the basis of the November 1999 forecast there is 
        an available unrestricted general fund balance projected for 
        June 30, 2001, the commissioner of finance shall implement the 
        provisions in paragraphs (b) to (f) before giving effect to 
        Minnesota Statutes, section 16A.152, subdivision 2. 
           (b) The general education formula allowance, as defined in 
        Minnesota Statutes, section 126C.10, subdivision 2, shall be 
        increased in fiscal year 2001 and later years by an amount not 
        to exceed $50, rounded to the nearest dollar, if the planning 
        estimates in the November 1999 forecast for fiscal year 2002 and 
        fiscal year 2003 show that projected revenues, excluding prior 
        year balances and excluding settlement payments received 
        pursuant to section IIB of the settlement document filed May 18, 
        1998, in State v. Philip Morris, Inc., No. C1-94-8565 (Minnesota 
        District Court, Second Judicial District), will be greater than 
        projected expenditures for each year. 
           (c) The amount available to fund the increase in paragraph 
        (b) is the lesser of: 
           (1) the available unrestricted general fund balance 
        projected for June 30, 2001; or 
           (2) the lowest amount to which projected revenues, 
        excluding prior year balances and excluding settlement payments 
        received pursuant to section IIB of the settlement document 
        filed May 18, 1998, in State v. Philip Morris, Inc., No. 
        C1-94-8565 (Minnesota District Court, Second Judicial District), 
        exceed projected expenditures for any year. 
           (d) The amount necessary to implement this section is 
        appropriated from the general fund. 
           (e) The amount available to increase the formula allowance 
        shall be certified to the commissioner of children, families, 
        and learning the day after release of the November 1999 forecast.
           (f) The commissioner of the department of children, 
        families, and learning shall notify school districts of the 
        resulting increase in the formula within two weeks of the 
        certification. 
           Sec. 65.  [SUPPLEMENTAL REVENUE.] 
           Supplemental revenue for fiscal years 2000 and later under 
        Minnesota Statutes, section 126C.10, subdivision 9, is increased 
        by the following amounts: 
           (1) for independent school district No. 11, Anoka, 
        $2,000,000; and 
           (2) for independent school district No. 279, Osseo, 
        $500,000. 
           Supplemental revenue increased under this section is not 
        subject to reduction under Minnesota Statutes, section 126C.10, 
        subdivision 12. 
           Sec. 66.  [EQUITY REVENUE ADJUSTMENT.] 
           For fiscal years 2000 and 2001, a school district that does 
        not have an operating referendum is eligible for additional 
        equity revenue under section 30 equal to $12 times the 
        district's adjusted marginal cost pupil units for that year. 
           Sec. 67.  [126C.052] [CLASS SIZE, ALL-DAY KINDERGARTEN, AND 
        SPECIAL EDUCATION STUDENT-TO-INSTRUCTOR RATIO RESERVE.] 
           A district is required to reserve $3 in fiscal year 2000 
        and $11 in fiscal year 2001 and later per adjusted marginal cost 
        pupil unit for class size reduction, all-day kindergarten, or 
        for reducing special education student-to-instructor ratios.  
        The school board of each district must pass a resolution stating 
        which one of these three programs will be funded with this 
        reserve.  The reserve amount under this section must be 
        allocated to the education site as defined in Minnesota 
        Statutes, section 123B.04, subdivision 1. 
           Sec. 68.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
        general and supplemental education aid:  
         $3,062,321,000     .....     2000
         $3,160,518,000     .....     2001
           The 2000 appropriation includes $272,186,000 for 1999 and 
        $2,790,135,000 for 2000.  
           The 2001 appropriation includes $310,015,000 for 2000 and 
        $2,850,503,000 for 2001.  
           Subd. 3.  [TRANSPORTATION SAFETY.] For student 
        transportation safety aid according to Minnesota Statutes, 
        section 123B.92, subdivision 4: 
             $144,000       .....     2000 
           The 2000 appropriation includes $144,000 for 1999.  
           Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
        transportation of pupils attending post-secondary institutions 
        according to Minnesota Statutes, section 124D.09, or for 
        transportation of pupils attending nonresident districts 
        according to Minnesota Statutes, section 124D.03: 
             $102,000       .....     2000
             $102,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
        cooperation revenue aid: 
             $5,940,000     .....     2000
             $  563,000     .....     2001
           The 2000 appropriation includes $869,000 for 1999 and 
        $5,071,000 for 2000. 
           The 2001 appropriation includes $563,000 for 2000 and $0 
        for 2001. 
           Sec. 69.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 123B.89; and 123B.92, 
        subdivisions 2, 4, 6, 7, 8, and 10, are repealed. 
           (b) Minnesota Statutes 1998, section 120B.05, is repealed 
        effective for revenue for fiscal year 2000. 
           (c) Minnesota Statutes 1998, section 124D.65, subdivisions 
        1, 2, and 3, are repealed effective for revenue for fiscal year 
        2001. 
           (d) Minnesota Statutes 1998, sections 124D.67; 126C.05, 
        subdivision 4; and 126C.06, are repealed effective the day 
        following final enactment. 
           This appropriation is available until June 30, 2001. 
           Sec. 70.  [EFFECTIVE DATES.] 
           Sections 13, 14, 26, 30, 37, and 39 are effective for 
        revenue for fiscal year 2000 and later.  Sections 46, 47, and 55 
        to 60 are effective the day following final enactment.  Section 
        61 is effective for taxes payable in 2000 and later. 
                                   ARTICLE 2 
                                SPECIAL PROGRAMS 
           Section 1.  Minnesota Statutes 1998, section 121A.23, is 
        amended to read: 
           121A.23 [HEALTH-RELATED PROGRAMS.] 
           Subdivision 1.  [AIDS SEXUALLY TRANSMITTED DISEASES 
        PROGRAM.] The commissioner of children, families, and learning, 
        in consultation with the commissioner of health, shall assist 
        districts in developing and implementing a program to prevent 
        and reduce the risk of acquired immune deficiency syndrome 
        sexually transmitted infections and diseases, including but not 
        exclusive to human immune deficiency virus and human papilloma 
        virus.  Each district must have a program that includes at least:
           (1) planning materials, guidelines, and other technically 
        accurate and updated information; 
           (2) a comprehensive, technically accurate, and updated 
        curriculum that includes helping students to abstain from sexual 
        activity until marriage; 
           (3) cooperation and coordination among districts and SCs; 
           (4) a targeting of adolescents, especially those who may be 
        at high risk of contracting AIDS sexually transmitted infections 
        and diseases, for prevention efforts; 
           (5) involvement of parents and other community members; 
           (6) in-service training for appropriate district staff and 
        school board members; 
           (7) collaboration with state agencies and organizations 
        having an AIDS a sexually transmitted infection and disease 
        prevention or AIDS sexually transmitted infection and disease 
        risk reduction program; 
           (8) collaboration with local community health services, 
        agencies and organizations having an AIDS a sexually transmitted 
        infection and disease prevention or AIDS sexually transmitted 
        infection and disease risk reduction program; and 
           (9) participation by state and local student organizations. 
           The department may provide assistance at a neutral site to 
        a nonpublic school participating in a district's program.  
        District programs must not conflict with the health and wellness 
        curriculum developed under Laws 1987, chapter 398, article 5, 
        section 2, subdivision 7. 
           If a district fails to develop and implement a program to 
        prevent and reduce the risk of AIDS sexually transmitted 
        infection and disease, the department must assist the service 
        cooperative in the region serving that district to develop or 
        implement the program.  
           Subd. 2.  [FUNDING SOURCES.] Districts may accept funds for 
        AIDS sexually transmitted infection and disease prevention 
        programs developed and implemented under this section from 
        public and private sources including public health funds and 
        foundations, department professional development funds, federal 
        block grants or other federal or state grants. 
           Sec. 2.  Minnesota Statutes 1998, section 121A.43, as 
        amended by Laws 1999, chapter 123, section 2, is amended to read:
           121A.43 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
        DISABILITY.] 
           When a pupil who has an individual education plan is 
        excluded or expelled under sections 121A.40 to 121A.56 for 
        misbehavior that is not a manifestation of the pupil's 
        disability, the district shall continue to provide special 
        education and related services after a period of suspension, if 
        suspension is imposed.  The district shall initiate a review of 
        the student's pupil's individual education plan and conduct a 
        review of the relationship between the student's pupil's 
        disability and the behavior subject to disciplinary action and 
        determine the appropriateness of the student's pupil's education 
        plan before commencing an expulsion or exclusion. 
           Sec. 3.  Minnesota Statutes 1998, section 122A.28, is 
        amended to read: 
           122A.28 [TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; 
        LICENSURE REQUIREMENTS.] 
           Subdivision 1.  [K-12 LICENSE TO TEACH DEAF AND 
        HARD-OF-HEARING STUDENTS.] The board of teaching must review and 
        determine appropriate licensure requirements for a candidate for 
        a license or an applicant for a continuing license to teach deaf 
        and hard-of-hearing students in 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 board.  
           Subd. 2.  [LICENSURE FOR TEACHING ORAL/AURAL DEAF EDUCATION 
        PROGRAMS.] (a) The board of teaching shall adopt a separate 
        licensure rule for a candidate for a license or an applicant for 
        a continuing license to teach in oral/aural deaf education 
        programs or to provide services, including itinerant oral/aural 
        deaf education services, to deaf and hard-of-hearing students in 
        prekindergarten through grade 12. 
           (b) The board shall design rule requirements for teaching 
        oral/aural deaf education in collaboration with representatives 
        of parents and educators of deaf and hard-of-hearing students, 
        post-secondary programs preparing teachers of deaf and 
        hard-of-hearing students, and the department of children, 
        families, and learning. 
           (c) Rule requirements for teaching oral/aural deaf 
        education shall reflect best practice research in oral/aural 
        deaf education.  Advanced competencies in teaching deaf and 
        hard-of-hearing students through oral/aural modes shall be 
        included. 
           (d) Licensure requirements for teachers of oral/aural deaf 
        education must include minimum competency in American sign 
        language, but are not subject to the guidelines established in 
        Laws 1993, chapter 224, article 3, section 32, as amended by 
        Laws 1998, chapter 398, article 2, section 47.  The signed 
        communication proficiency interview shall not be required for 
        teachers licensed to teach deaf and hard-of-hearing students 
        through oral/aural deaf education methods. 
           (e) Requirements for teachers or oral/aural deaf education 
        shall include appropriate continuing education requirements for 
        renewing this licensure. 
           Sec. 4.  Minnesota Statutes 1998, section 123A.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
        of an area learning center must reserve revenue in an amount 
        equal to at least 90 percent of the district average general 
        education revenue less compensatory per pupil unit minus an 
        amount equal to the product of the formula allowance according 
        to section 126C.10, subdivision 2, times .0485, calculated 
        without basic skills revenue unit, transportation sparsity 
        revenue, and the transportation portion of the transition 
        revenue adjustment, times the number of pupil units attending an 
        area learning center program under this section.  The amount of 
        reserved revenue under this subdivision may only be spent on 
        program costs associated with the area learning center.  
        Compensatory revenue must be allocated according to section 
        126C.15, subdivision 2.  
           Sec. 5.  Minnesota Statutes 1998, section 123A.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ACCESS TO SERVICES.] A center shall have access 
        to the district's regular education programs, special education 
        programs, technology facilities, and staff.  It may contract 
        with individuals or post-secondary institutions.  It shall seek 
        the involvement of community education programs, post-secondary 
        institutions, interagency collaboratives, culturally based 
        organizations, mutual assistance associations, and other 
        community resources, businesses, and other federal, state, and 
        local public agencies. 
           Sec. 6.  Minnesota Statutes 1998, section 123A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM FOCUS.] (a) The programs and 
        services of a center must focus on academic and learning skills, 
        applied learning opportunities, trade and vocational skills, 
        work-based learning opportunities, work experience, youth 
        service to the community, and transition services, and English 
        language and literacy programs for children whose primary 
        language is a language other than English.  Applied learning, 
        work-based learning, and service learning may best be developed 
        in collaboration with a local education and transitions 
        partnership, culturally based organizations, mutual assistance 
        associations, or other community resources.  In addition to 
        offering programs, the center shall coordinate the use of other 
        available educational services, special education services, 
        social services, health services, and post-secondary 
        institutions in the community and services area.  
           (b) Consistent with the requirements of sections 121A.40 to 
        121A.56, a school district may provide an alternative education 
        program for a student who is within the compulsory attendance 
        age under section 120A.20, and who is involved in severe or 
        repeated disciplinary action. 
           Sec. 7.  Minnesota Statutes 1998, section 123A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
        programs for secondary pupils and adults.  A center may also 
        provide programs and services for elementary and secondary 
        pupils who are not attending the center to assist them in being 
        successful in school.  A center shall use research-based best 
        practices for serving limited English proficient students and 
        their parents.  An individual education plan team may identify a 
        center as an appropriate placement to the extent a center can 
        provide the student with the appropriate special education 
        services described in the student's plan.  Pupils eligible to be 
        served are those age five to adults 22 and older who qualify 
        under the graduation incentives program in section 124D.68, 
        subdivision 2, or those pupils who are eligible to receive 
        special education services under sections 125A.03 to 125A.24, 
        and 125A.65. 
           Sec. 8.  Minnesota Statutes 1998, section 123B.75, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [INTEGRATION AID.] Integration aid received 
        under section 127A.45, subdivision 12a, must be recognized in 
        the same fiscal year as the integration levy. 
           Sec. 9.  Minnesota Statutes 1998, section 124D.081, 
        subdivision 3, is amended to read: 
           Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
        shall rank all school sites with kindergarten programs that do 
        not exclusively serve students under sections 125A.03 to 
        125A.24, and 125A.65.  The ranking must be from highest to 
        lowest based on the site's free and reduced lunch count as a 
        percent of the fall enrollment using the preceding October 1 
        enrollment data.  Once a school site is calculated to be 
        eligible, it remains eligible for the duration of the pilot 
        program, unless the site's ranking falls below the state average 
        for elementary schools.  For each school site, the percentage 
        used to calculate the ranking must be the greater of (1) the 
        percent of the fall kindergarten enrollment receiving free and 
        reduced lunch, or (2) the percent of the total fall enrollment 
        receiving free and reduced lunch.  The list of ranked sites must 
        be separated into the following geographic areas:  Minneapolis 
        district, St. Paul district, suburban Twin Cities districts in 
        the seven-county metropolitan area, and school districts in 
        greater Minnesota. 
           (b) The commissioner shall establish a process and 
        timelines to qualify school sites for the next school year.  
        School sites must be qualified in each geographic area from the 
        list of ranked sites until the estimated revenue available for 
        this program has been allocated.  The total estimated revenue 
        must be distributed to qualified school sites in each geographic 
        area as follows:  25 percent for Minneapolis sites, 25 percent 
        for St. Paul sites, 25 percent for suburban Twin Cities sites, 
        and 25 percent for greater Minnesota. 
           Sec. 10.  Minnesota Statutes 1998, section 124D.454, 
        subdivision 5, is amended to read: 
           Subd. 5.  [STATE TOTAL SCHOOL-TO-WORK PROGRAM-DISABLED 
        REVENUE.] The state total school-to-work program-disabled 
        revenue for fiscal year 1998 2000 equals $8,924,000 $8,982,000.  
        The state total school-to-work program-disabled revenue for 
        fiscal year 1999 2001 equals $8,976,000 $8,966,000.  The state 
        total school-to-work program-disabled revenue for later fiscal 
        years equals:  
           (1) the state total school-to-work program-disabled revenue 
        for the preceding fiscal year; times 
           (2) the program growth factor; times 
           (3) the ratio of the state total average daily membership 
        for the current fiscal year to the state total average daily 
        membership for the preceding fiscal year. 
           Sec. 11.  Minnesota Statutes 1998, section 124D.65, 
        subdivision 4, is amended to read: 
           Subd. 4.  [STATE TOTAL LEP REVENUE.] (a) The state total 
        limited English proficiency programs revenue for fiscal 
        year 1998 2000 equals $14,629,000 $27,454,000.  The state total 
        limited English proficiency programs revenue for fiscal 
        year 1999 2001 equals $16,092,000 $31,752,000.  
           (b) The state total limited English proficiency programs 
        revenue for later fiscal years equals: 
           (1) the state total limited English proficiency programs 
        revenue for the preceding fiscal year; times 
           (2) the program growth factor under section 125A.76 
        subdivision 1; times 
           (3) the ratio of the state total number of pupils with 
        limited English proficiency for the current fiscal year to the 
        state total number of pupils with limited English proficiency 
        for the preceding fiscal year. 
           Sec. 12.  Minnesota Statutes 1998, section 124D.87, is 
        amended to read: 
           124D.87 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION GRANTS AID.] 
           (a) A district that provides transportation of pupils to 
        and from an interdistrict program for desegregation or 
        integration purposes may apply to the commissioner is eligible 
        for a grant state aid to cover the additional costs of 
        transportation.  
           (b) A district in the metropolitan area may apply to the 
        commissioner for a grant state aid to cover the costs of 
        transporting pupils who are enrolled under section 124D.03 if 
        the enrollment of the student in the nonresident district 
        contributes to desegregation or integration purposes.  The 
        commissioner shall develop the form and manner of 
        applications for state aid, the criteria to be used to determine 
        when transportation is for desegregation or integration 
        purposes, and the accounting procedure to be used to determine 
        excess costs.  In determining the grant amount aid amounts, the 
        commissioner shall consider other revenue received by the 
        district for transportation for desegregation or integration 
        purposes. 
           (c) Grants may be awarded Aid must be paid under paragraph 
        (b) only if grants awarded aid amounts under paragraph (a) have 
        been fully funded. 
           Sec. 13.  Minnesota Statutes 1998, section 125A.09, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DISPUTE RESOLUTION.] Parents and guardians must 
        have an opportunity to meet with appropriate district staff in 
        at least one conciliation conference, mediation, or other method 
        of alternative dispute resolution that the parties agree to, if 
        they object to any proposal of which they are notified under 
        subdivision 1.  The state intends to encourage parties to 
        resolve disputes through mediation or other form of alternative 
        dispute resolution.  A school district and a parent or guardian 
        must participate in mediation using mediation services 
        acceptable to both parties, unless a party objects to the 
        mediation.  Mediation shall remain available to the parties 
        until a party objects to the mediation, or the mediator 
        determines that further efforts to mediate a dispute are not 
        warranted.  All mediation is subject to the confidentiality 
        requirements under rule 114.08 of the general rules of practice 
        for the district courts.  Alternative dispute resolution must 
        not be used to deny or delay a parent or guardian's right to a 
        due process hearing.  If the parent or guardian refuses efforts 
        by the district to conciliate the dispute with the district, the 
        requirement of an opportunity for conciliation or other 
        alternative dispute resolution must be deemed to be satisfied.  
        Notwithstanding other law, in any proceeding following a 
        conciliation conference, the district must not offer a 
        conciliation conference memorandum into evidence, except for any 
        portions that describe the district's final proposed offer of 
        service.  Otherwise, with respect to forms of dispute 
        resolution, mediation, or conciliation, Minnesota Rule of 
        Evidence 408 applies.  The department may reimburse the 
        districts or directly pay the costs of lay advocates, not to 
        exceed $150 per dispute, used in conjunction with alternative 
        dispute resolution. 
           Sec. 14.  Minnesota Statutes 1998, section 125A.15, is 
        amended to read: 
           125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
           The responsibility for special instruction and services for 
        a child with a disability temporarily placed in another district 
        for care and treatment shall be determined in the following 
        manner: 
           (a) The district of residence of a child shall be the 
        district in which the child's parent resides, if living, or the 
        child's guardian, or the district designated by the commissioner 
        if neither parent nor guardian is living within the state. 
           (b) When a child is temporarily placed for care and 
        treatment in a day program located in another district and the 
        child continues to live within the district of residence during 
        the care and treatment, the district of residence is responsible 
        for providing transportation to and from the care and treatment 
        facility and an appropriate educational program for the 
        child.  Transportation shall only be provided by the district 
        during regular operating hours of the district.  The district 
        may provide the educational program at a school within the 
        district of residence, at the child's residence, or in the 
        district in which the day treatment center is located by paying 
        tuition to that district. 
           (c) When a child is temporarily placed in a residential 
        program for care and treatment, the nonresident district in 
        which the child is placed is responsible for providing an 
        appropriate educational program for the child and necessary 
        transportation while the child is attending the educational 
        program; and must bill the district of the child's residence for 
        the actual cost of providing the program, as outlined in section 
        125A.11.  However, the board, lodging, and treatment costs 
        incurred in behalf of a child with a disability placed outside 
        of the school district of residence by the commissioner of human 
        services or the commissioner of corrections or their agents, for 
        reasons other than providing for the child's special educational 
        needs must not become the responsibility of either the district 
        providing the instruction or the district of the child's 
        residence.  For the purposes of this section, the state 
        correctional facilities operated on a fee-for-service basis are 
        considered to be residential programs for care and treatment. 
           (d) The district of residence shall pay tuition and other 
        program costs, not including transportation costs, to the 
        district providing the instruction and services.  The district 
        of residence may claim general education aid for the child as 
        provided by law.  Transportation costs must be paid by the 
        district responsible for providing the transportation and the 
        state must pay transportation aid to that district. 
           Sec. 15.  [125A.155] [SPECIAL EDUCATION RECIPROCITY; 
        COMMISSIONER DUTIES.] 
           The commissioner of children, families, and learning must 
        develop a special education reciprocity agreement form.  The 
        reciprocity form must specify the procedures used to calculate 
        special education tuition charges for both Minnesota students 
        that are served in other states and for out-of-state students 
        who are served in Minnesota.  The commissioner shall attempt to 
        enter into reciprocity agreements with any state that sends 
        students to Minnesota and any state that provides services to 
        Minnesota students. 
           Sec. 16.  Minnesota Statutes 1998, section 125A.50, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION CONTENTS.] The application must set 
        forth: 
           (1) instructional services available to eligible pupils 
        under section 124D.67 124D.66, subdivision 3 2, and pupils with 
        a disability under section 125A.02; 
           (2) criteria to select pupils for the program and the 
        assessment procedures to determine eligibility; 
           (3) involvement in the program of parents of pupils in the 
        program, parent advocates, and community special education 
        advocates; 
           (4) accounting procedures to document that federal special 
        education money is used to supplement or increase the level of 
        special education instruction and related services provided with 
        state and local revenue, but in no case to supplant the state 
        and local revenue, and that districts are expending at least the 
        amount for special education instruction and related services 
        required by federal law; 
           (5) the role of regular and special education teachers in 
        planning and implementing the program; and 
           (6) other information requested by the commissioner.  
           Sec. 17.  Minnesota Statutes 1998, section 125A.50, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ANNUAL REPORT.] Each year the district must 
        submit to the commissioner a report containing the information 
        described in subdivision 3 and section 124D.67, subdivision 7.  
           Sec. 18.  Minnesota Statutes 1998, section 125A.51, is 
        amended to read: 
           125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
        EDUCATION AND TRANSPORTATION.] 
           The responsibility for providing instruction and 
        transportation for a pupil without a disability who has a 
        short-term or temporary physical or emotional illness or 
        disability, as determined by the standards of the state board, 
        and who is temporarily placed for care and treatment for that 
        illness or disability, must be determined as provided in this 
        section.  
           (a) The school district of residence of the pupil is the 
        district in which the pupil's parent or guardian resides or the 
        district designated by the commissioner if neither parent nor 
        guardian is living within the state and tuition has been denied. 
           (b) When parental rights have been terminated by court 
        order, the legal residence of a child placed in a residential or 
        foster facility for care and treatment is the district in which 
        the child resides when parental rights have been terminated. 
           (b) (c) Before the placement of a pupil for care and 
        treatment, the district of residence must be notified and 
        provided an opportunity to participate in the placement 
        decision.  When an immediate emergency placement is necessary 
        and time does not permit resident district participation in the 
        placement decision, the district in which the pupil is 
        temporarily placed, if different from the district of residence, 
        must notify the district of residence of the emergency placement 
        within 15 days of the placement.  
           (c) (d) When a pupil without a disability is temporarily 
        placed for care and treatment in a day program and the pupil 
        continues to live within the district of residence during the 
        care and treatment, the district of residence must provide 
        instruction and necessary transportation to and from the 
        treatment facility for the pupil.  Transportation shall only be 
        provided by the district during regular operating hours of the 
        district.  The district may provide the instruction at a school 
        within the district of residence, at the pupil's residence, or 
        in the case of a placement outside of the resident district, in 
        the district in which the day treatment program is located by 
        paying tuition to that district.  The district of placement may 
        contract with a facility to provide instruction by teachers 
        licensed by the state board of teaching.  
           (d) (e) When a pupil without a disability is temporarily 
        placed in a residential program for care and treatment, the 
        district in which the pupil is placed must provide instruction 
        for the pupil and necessary transportation while the pupil is 
        receiving instruction, and in the case of a placement outside of 
        the district of residence, the nonresident district must bill 
        the district of residence for the actual cost of providing the 
        instruction for the regular school year and for summer school, 
        excluding transportation costs.  When a pupil without a 
        disability is temporarily placed in a residential program 
        outside the district of residence, the administrator of the 
        court placing the pupil must send timely written notice of the 
        placement to the district of residence.  The district of 
        placement may contract with a residential facility to provide 
        instruction by teachers licensed by the state board of teaching. 
        For purposes of this section, the state correctional facilities 
        operated on a fee-for-service basis are considered to be 
        residential programs for care and treatment. 
           (e) (f) The district of residence must include the pupil in 
        its residence count of pupil units and pay tuition as provided 
        in section 123A.488 to the district providing the instruction.  
        Transportation costs must be paid by the district providing the 
        transportation and the state must pay transportation aid to that 
        district.  For purposes of computing state transportation aid, 
        pupils governed by this subdivision must be included in the 
        disabled transportation category.  
           Sec. 19.  [125A.515] [PLACEMENT OF CHILDREN WITHOUT 
        DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
           The commissioner shall approve education programs in care 
        and treatment facilities for placement of children without 
        disabilities, including detention centers, before being licensed 
        by the department of human services or the department of 
        corrections. 
           Sec. 20.  Minnesota Statutes 1998, section 125A.62, is 
        amended to read: 
           125A.62 [DUTIES OF STATE THE BOARD OF EDUCATION THE 
        MINNESOTA STATE ACADEMIES.] 
           Subdivision 1.  [GOVERNANCE.] The board of the Faribault 
        academy Minnesota state academies shall govern the state 
        academies for the deaf and the state academy for the blind.  The 
        board must promote academic standards based on high expectation 
        and an assessment system to measure academic performance toward 
        the achievement of those standards.  The board must focus on the 
        academies' needs as a whole and not prefer one school over the 
        other.  The board of the Faribault Minnesota state academies 
        shall consist of seven nine persons.  The members of the board 
        shall be appointed by the governor with the advice and consent 
        of the senate.  Three members One member must be from the 
        seven-county metropolitan area, three members one member must be 
        from greater Minnesota, and one member may be appointed at-large.
        The board must be composed of: 
           (1) one present or former superintendent of an independent 
        school district; 
           (2) one present or former special education director; 
           (3) the commissioner of children, families, and learning or 
        the commissioner's designee; 
           (4) one member of the blind community; 
           (5) one member of the deaf community; and 
           (6) two members of the general public with business, 
        administrative, or financial expertise; 
           (7) one nonvoting, unpaid ex officio member appointed by 
        the site council for the state academy for the deaf; and 
           (8) one nonvoting, unpaid ex officio member appointed by 
        the site council for the state academy for the blind. 
           Subd. 2.  [TERMS; COMPENSATION; AND OTHER.] The membership 
        terms, compensation, removal of members, and filling of 
        vacancies shall be as provided for in section 15.0575.  
        Notwithstanding section 15.0575, a member may serve not more 
        than two consecutive four-year terms. 
           Subd. 3.  [MEETINGS.] All meetings of the board shall be as 
        provided in section 471.705 and must be held in Faribault. 
           Subd. 4.  [MOST BENEFICIAL, LEAST RESTRICTIVE.] The board 
        must do what is necessary to provide the most beneficial and 
        least restrictive program of education for each pupil at the 
        academies who is handicapped by visual disability or deafness.  
           Subd. 5.  [PLANNING, EVALUATION, AND REPORTING.] To the 
        extent required in school districts, the board must establish a 
        process for the academies to include parent and community input 
        in the planning, evaluation, and reporting of curriculum and 
        pupil achievement. 
           Subd. 6.  [SITE COUNCILS.] The board may must establish, 
        and appoint members to, a site council at each academy.  The 
        site councils shall exercise power and authority granted by the 
        board.  The board must appoint to each site council the 
        exclusive representative's employee designee from each exclusive 
        representative at the academies.  The site councils may make a 
        recommendation to the governor regarding board appointments no 
        more than 30 days after receiving the list of applicants from 
        the governor. 
           Subd. 7.  [TRUSTEE OF ACADEMIES' PROPERTY.] The board is 
        the trustee of the academies' property.  Securities and money, 
        including income from the property, must be deposited in the 
        state treasury according to section 16A.275.  The deposits are 
        subject to the order of the board.  
           Subd. 8.  [GRANTS.] The board, through the chief 
        administrators of the academies, may apply for all competitive 
        grants administered by agencies of the state and other 
        government or nongovernment sources.  Application may not be 
        made for grants over which the board has discretion. 
           Sec. 21.  Minnesota Statutes 1998, section 125A.64, is 
        amended to read: 
           125A.64 [POWERS OF BOARD OF THE FARIBAULT MINNESOTA STATE 
        ACADEMIES.] 
           Subdivision 1.  [PERSONNEL.] The board of the Faribault 
        Minnesota state academies may employ central administrative 
        staff members and other personnel necessary to provide and 
        support programs and services at each academy.  
           Subd. 2.  [GET HELP FROM DEPARTMENT.] The board of the 
        Faribault Minnesota state academies may require the department 
        of children, families, and learning to provide program 
        leadership, program monitoring, and technical assistance at the 
        academies.  
           Subd. 3.  [UNCLASSIFIED POSITIONS.] The board of the 
        Faribault Minnesota state academies may place any position other 
        than residential academies administrator in the unclassified 
        service.  The position must meet the criteria in section 43A.08, 
        subdivision 1a.  
           Subd. 4.  [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] 
        The board of the Faribault Minnesota state academies may enter 
        into agreements with public or private agencies or institutions 
        to provide residential and building maintenance services.  The 
        board of the Faribault Minnesota state academies must first 
        decide that contracting for the services is more efficient and 
        less expensive than not contracting for them.  
           Subd. 5.  [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) 
        The board of the Faribault Minnesota state academies may enter 
        into agreements with teacher preparation institutions for 
        student teachers to get practical experience at the academies.  
        A licensed teacher must provide appropriate supervision of each 
        student teacher.  
           (b) The board of the Faribault Minnesota state academies 
        may enter into agreements with accredited higher education 
        institutions for certain student trainees to get practical 
        experience at the academies.  The students must be preparing 
        themselves in a professional field that provides special 
        services to children with a disability in school programs.  To 
        be a student trainee in a field, a person must have completed at 
        least two years of an approved program in the field.  A person 
        who is licensed or registered in the field must provide 
        appropriate supervision of each student trainee.  
           Sec. 22.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EDUCATIONAL PROGRAM; TUITION.] When it is 
        determined pursuant to section 125A.69, subdivision 1 or 2, that 
        the child is entitled to attend either school, the board of the 
        Faribault Minnesota state academies must provide the appropriate 
        educational program for the child.  The board of the Faribault 
        Minnesota state academies must make a tuition charge to the 
        child's district of residence for the cost of providing the 
        program.  The amount of tuition charged must 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 
        126C.10, subdivision 2.  The district of the child's residence 
        must pay the tuition and may claim general education aid for the 
        child.  Tuition received by the board of the Faribault Minnesota 
        state academies, except for tuition received under subdivision 
        4, must be deposited in the state treasury as provided in 
        subdivision 8. 
           Sec. 23.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PROVIDING APPROPRIATE EDUCATIONAL PROGRAMS.] 
        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 district where the 
        institution is located must provide an appropriate educational 
        program for the child and must make a tuition charge to the 
        board of the Faribault Minnesota state academies for the actual 
        cost of providing the program, less any amount of aid received 
        pursuant to section 125A.75.  The board of the Faribault 
        Minnesota state academies must pay the tuition and other program 
        costs including the unreimbursed transportation costs.  Aids for 
        children with a disability must be paid to the district 
        providing the special instruction and services.  Special 
        transportation must be provided by the district providing the 
        educational program and the state must reimburse that district 
        within the limits provided by law.  
           Sec. 24.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 6, is amended to read: 
           Subd. 6.  [TUITION REDUCTION.] Notwithstanding the 
        provisions of subdivisions 3 and 5, the board of the Faribault 
        Minnesota state academies may agree to make a tuition charge for 
        less than the amount specified in subdivision 3 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 board of the Faribault Minnesota state academies 
        for less than the amount specified in subdivision 5 for 
        providing appropriate educational programs to pupils attending 
        the applicable school. 
           Sec. 25.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 7, is amended to read: 
           Subd. 7.  [STAFF ALLOCATION.] Notwithstanding the 
        provisions of subdivisions 3 and 5, the board of the Faribault 
        Minnesota state academies 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.  
           Sec. 26.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 8, is amended to read: 
           Subd. 8.  [STUDENT COUNT; TUITION.] On May 1 of each year, 
        the board of the Faribault Minnesota state academies 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 board of the Faribault Minnesota 
        state academies 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.  
           Sec. 27.  Minnesota Statutes 1998, section 125A.65, 
        subdivision 10, is amended to read: 
           Subd. 10.  [ANNUAL APPROPRIATION.] There is annually 
        appropriated to the department for the Faribault Minnesota state 
        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. 28.  Minnesota Statutes 1998, section 125A.68, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBJECTS.] The board of the Faribault 
        Minnesota state academies must establish procedures for:  
           (1) admission, including short-term admission, to the 
        academies; 
           (2) discharge from the academies; 
           (3) decisions on a pupil's program at the academies; and 
           (4) evaluation of a pupil's progress at the academies.  
           Sec. 29.  Minnesota Statutes 1998, section 125A.69, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TWO KINDS.] There are two kinds of 
        admission to the Minnesota state academies.  
           (a) A pupil who is deaf, hard of hearing, or blind-deaf, 
        may be admitted to the academy for the deaf.  A pupil who is 
        blind or visually impaired, blind-deaf, or multiply handicapped 
        may be admitted to the academy for the blind.  For a pupil to be 
        admitted, two decisions must be made under sections 125A.03 to 
        125A.24 and 125A.65. 
           (1) It must be decided by the individual education planning 
        team that education in regular or special education classes in 
        the pupil's district of residence cannot be achieved 
        satisfactorily because of the nature and severity of the 
        deafness or blindness or visual impairment respectively. 
           (2) It must be decided by the individual education planning 
        team that the academy provides the most appropriate placement 
        within the least restrictive alternative for the pupil.  
           (b) A deaf or hard of hearing child or a visually impaired 
        pupil may be admitted to get socialization skills or on a 
        short-term basis for skills development.  
           Sec. 30.  Minnesota Statutes 1998, section 125A.69, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OUT-OF-STATE ADMISSIONS.] An applicant from 
        another state who can benefit from attending either academy may 
        be admitted to the academy if the admission does not prevent an 
        eligible Minnesota resident from being admitted.  The state 
        board of education board of the Minnesota state academies must 
        obtain reimbursement from the other state for the costs of the 
        out-of-state admission.  The state board may enter into an 
        agreement with the appropriate authority in the other state for 
        the reimbursement.  Money received from another state must be 
        deposited in the general fund and credited to the general 
        operating account of the academies.  The money is appropriated 
        to the academies. 
           Sec. 31.  Minnesota Statutes 1998, section 125A.70, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LOCAL SOCIAL SERVICES AGENCY.] If the person 
        liable for support of a pupil cannot support the pupil, the 
        local social services agency of the county of the pupil's 
        residence must do so.  The commissioner of children, families, 
        and learning must decide how much the local social services 
        agency must pay.  The board of the Faribault Minnesota state 
        academies must adopt rules that tell how the commissioner is to 
        fix the amount.  The local social services agency must make the 
        payment to the superintendent of the school district of 
        residence.  
           Sec. 32.  Minnesota Statutes 1998, section 125A.71, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
        of the Minnesota state academies may enter into agreements for 
        the academies to provide respite care and supplemental 
        educational instruction and services including assessments and 
        counseling.  The agreements may be made with public or private 
        agencies or institutions, school districts, service 
        cooperatives, or counties.  The board may authorize the 
        academies to provide conferences, seminars, nondistrict and 
        district requested technical assistance, and production of 
        instructionally related materials. 
           Sec. 33.  Minnesota Statutes 1998, section 125A.72, is 
        amended to read: 
           125A.72 [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 Minnesota state 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 Minnesota state 
        academies for student activities must be credited to a Faribault 
        Minnesota state academies' student activities account and may be 
        spent only for Faribault Minnesota state academies' student 
        activities purposes. 
           Subd. 3.  [CARRYOVER.] An unexpended balance in the 
        Faribault Minnesota state 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.  [MONEY FROM CERTAIN STUDENT ACTIVITIES 
        SPECIFICALLY INCLUDED AMONG RECEIPTS.] Any money generated by 
        a Faribault Minnesota state 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 Minnesota state academies 
        is specifically included among the kinds of receipts that are 
        described in subdivision 1. 
           Sec. 34.  Minnesota Statutes 1998, section 125A.73, is 
        amended to read: 
           125A.73 [DUTIES OF STATE DEPARTMENTS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The department of children, families, and learning 
        must assist the board of the Faribault Minnesota state academies 
        in preparing reports on the academies.  
           Subd. 2.  [DEPARTMENT OF EMPLOYEE RELATIONS.] The 
        department of employee relations, in cooperation with the board 
        of the Faribault Minnesota state academies, must develop a 
        statement of necessary qualifications and skills for all staff 
        members of the academies. 
           Sec. 35.  Minnesota Statutes 1998, section 125A.75, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
        district the actual cost incurred in providing instruction and 
        services for a child with a disability whose district of 
        residence has been determined by section 125A.17 or 125A.51, 
        paragraph (b), and who is temporarily placed in a state 
        institution or, a licensed residential facility, or foster 
        facility for care and treatment.  This section does not apply to 
        a child placed in a foster home or a foster group home.  The 
        regular education program at the facility must be an approved 
        program according to section 125A.515. 
           Upon following the procedure specified by the commissioner, 
        the district may bill the state the actual cost incurred in 
        providing the services including transportation costs and a 
        proportionate amount of capital expenditures and debt service, 
        minus the amount of the basic revenue, as defined in section 
        126C.10, subdivision 2, of the district for the child and the 
        special education aid, transportation aid, and any other aid 
        earned on behalf of the child.  The limit in subdivision 2 
        applies to aid paid pursuant to this subdivision.  
           To the extent possible, the commissioner shall obtain 
        reimbursement from another state for the cost of serving any 
        child whose parent or guardian resides in that state.  The 
        commissioner may contract with the appropriate authorities of 
        other states to effect reimbursement.  All money received from 
        other states must be paid to the state treasury and placed in 
        the general fund.  
           Sec. 36.  Minnesota Statutes 1998, section 125A.75, 
        subdivision 8, is amended to read: 
           Subd. 8.  [LITIGATION AND HEARING COSTS.] (a) For fiscal 
        year 1999 and thereafter, the commissioner of children, 
        families, and learning, or the commissioner's designee, shall 
        use state funds to pay school districts for the administrative 
        costs of a due process hearing incurred under section 125A.09, 
        subdivisions 6, 10, and 11, including hearing officer fees, 
        court reporter fees, mileage costs, transcript 
        costs, interpreter and transliterator fees, independent 
        evaluations ordered by the hearing officer, and rental of 
        hearing rooms, but not including district attorney fees.  To 
        receive state aid under this paragraph, a school district shall 
        submit to the commissioner at the end of the school year by 
        August 1 an itemized list of unreimbursed actual costs for fees 
        and other expenses under this paragraph incurred after June 30, 
        1998, for hearings completed during the previous fiscal year.  
        State funds used for aid to school districts under this 
        paragraph shall be based on the unreimbursed actual costs and 
        fees submitted by a district from previous school years. 
           (b) For fiscal year 1999 and thereafter, a school district, 
        to the extent to which it prevails under United States Code, 
        title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal 
        Rules of Civil Procedure, shall receive state aid equal to 50 
        percent of the total actual cost of attorney fees incurred after 
        a request for a due process hearing under section 125A.09, 
        subdivisions 6, 9, and 11, is served upon the parties.  A 
        district is eligible for reimbursement for attorney fees under 
        this paragraph only if: 
           (1) a court of competent jurisdiction determines that the 
        parent is not the prevailing party under United States Code, 
        title 20, section 1415(i)(3)(B)(D), or the parties stipulate 
        that the parent is not the prevailing party; 
           (2) the district has made a good faith effort to resolve 
        the dispute through mediation, but the obligation to mediate 
        does not compel the district to agree to a proposal or make a 
        concession; and 
           (3) the district made an offer of settlement under Rule 68 
        of the Federal Rules of Civil Procedure.  
           To receive aid, a school district that meets the criteria 
        of this paragraph shall submit to the commissioner at the end of 
        the school year an itemized list of unreimbursed actual attorney 
        fees associated with a due process hearing under section 
        125A.09, subdivisions 6, 9, and 11.  Aid under this paragraph 
        for each school district is based on unreimbursed actual 
        attorney fees submitted by the district from previous school 
        years. 
           (c) For fiscal year 1999 and thereafter, a school district 
        is eligible to receive state aid for 50 percent of the total 
        actual cost of attorney fees it incurs in appealing to a court 
        of competent jurisdiction the findings, conclusions, and order 
        of a due process hearing under section 125A.09, subdivisions 6, 
        9, and 11.  The district is eligible for reimbursement under 
        this paragraph only if the commissioner authorizes the 
        reimbursement after evaluating the merits of the case.  In a 
        case where the commissioner is a named party in the litigation, 
        the commissioner of the bureau of mediation services shall make 
        the determination regarding reimbursement.  The commissioner's 
        decision is final.  
           (d) The commissioner shall provide districts with a form on 
        which to annually report litigation costs under this section and 
        shall base aid estimates on those preliminary reports submitted 
        by the district during the current fiscal year. 
           Sec. 37.  Minnesota Statutes 1998, section 125A.76, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section and section 125A.77, the definitions in this subdivision 
        apply. 
           (a) "Base year" for fiscal year 1998 and later fiscal years 
        means the second fiscal year preceding the fiscal year for which 
        aid will be paid. 
           (b) "Basic revenue" has the meaning given it in section 
        126C.10, subdivision 2.  For the purposes of computing basic 
        revenue pursuant to this section, each child with a disability 
        shall be counted as prescribed in section 126C.05, subdivision 1.
           (c) "Essential personnel" means teachers, related services, 
        and support services staff providing direct services to students.
           (d) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (e) "Program growth factor" means 1.00 1.012 for fiscal 
        year 2000 2002 and later. 
           (f) "Aid percentage factor" means 60 percent for fiscal 
        year 1996, 70 percent for fiscal year 1997, 80 percent for 
        fiscal year 1998, 90 percent for fiscal year 1999, and 100 
        percent for fiscal years 2000 and later. 
           (g) "Levy percentage factor" means 100 minus the aid 
        percentage factor for that year. 
           Sec. 38.  Minnesota Statutes 1998, section 125A.76, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
        education base revenue equals the sum of the following amounts 
        computed using base year data: 
           (1) 68 percent of the salary of each essential person 
        employed in the district's program for children with a 
        disability during the fiscal year, not including the share of 
        salaries for personnel providing health-related services counted 
        in clause (8), whether the person is employed by one or more 
        districts or a Minnesota correctional facility operating on a 
        fee-for-service basis; 
           (2) for the Minnesota state academy for the deaf or the 
        Minnesota state academy for the blind, 68 percent of the salary 
        of each instructional aide assigned to a child attending the 
        academy, if that aide is required by the child's individual 
        education plan; 
           (3) for special instruction and services provided to any 
        pupil by contracting with public, private, or voluntary agencies 
        other than school districts, in place of special instruction and 
        services provided by the district, 52 percent of the difference 
        between the amount of the contract and the basic revenue of the 
        district for that pupil for the fraction of the school day the 
        pupil receives services under the contract; 
           (4) for special instruction and services provided to any 
        pupil by contracting for services with public, private, or 
        voluntary agencies other than school districts, that are 
        supplementary to a full educational program provided by the 
        school district, 52 percent of the amount of the contract for 
        that pupil; 
           (5) for supplies and equipment purchased or rented for use 
        in the instruction of children with a disability, not including 
        the portion of the expenses for supplies and equipment used to 
        provide health-related services counted in clause (8), an amount 
        equal to 47 percent of the sum actually expended by the 
        district, or a Minnesota correctional facility operating on a 
        fee-for-service basis, but not to exceed an average of $47 in 
        any one school year for each child with a disability receiving 
        instruction; 
           (6) for fiscal years 1997 and later, special education base 
        revenue shall include amounts under clauses (1) to (5) for 
        special education summer programs provided during the base year 
        for that fiscal year; and 
           (7) for fiscal years 1999 and later, the cost of providing 
        transportation services for children with disabilities under 
        section 123B.92, subdivision 1, paragraph (b), clause (4); and 
           (8) for fiscal years 2001 and later the cost of salaries, 
        supplies and equipment, and other related costs actually 
        expended by the district for the nonfederal share of medical 
        assistance services according to section 256B.0625, subdivision 
        26. 
           (b) If requested by a school district operating a special 
        education program during the base year for less than the full 
        fiscal year, or a school district in which is located a 
        Minnesota correctional facility operating on a fee-for-service 
        basis for less than the full fiscal year, the commissioner may 
        adjust the base revenue to reflect the expenditures that would 
        have occurred during the base year had the program been operated 
        for the full fiscal year. 
           (c) Notwithstanding paragraphs (a) and (b), the portion of 
        a school district's base revenue attributable to a Minnesota 
        correctional facility operating on a fee-for-service basis 
        during the facility's first year of operating on a 
        fee-for-service basis shall be computed using current year data. 
           Sec. 39.  Minnesota Statutes 1998, section 125A.76, 
        subdivision 4, is amended to read: 
           Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE AID.] The 
        state total special education revenue aid for fiscal year 1998 
        2000 equals $358,542,000 $463,000,000.  The state total special 
        education revenue aid for fiscal year 1999 2001 equals 
        $435,322,000 $474,000,000.  The state total special 
        education revenue aid for later fiscal years equals:  
           (1) the state total special education revenue aid for the 
        preceding fiscal year; times 
           (2) the program growth factor; times 
           (3) the ratio of the state total average daily membership 
        for the current fiscal year to the state total average daily 
        membership for the preceding fiscal year. 
           Sec. 40.  Minnesota Statutes 1998, section 125A.76, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE AID.] 
        (a) A school district's special education revenue aid for fiscal 
        year 1996 2000 and later equals the state total special 
        education revenue aid, minus the amount determined 
        under paragraph paragraphs (b) and (c), times the ratio of the 
        district's adjusted special education base revenue to the state 
        total adjusted special education base revenue.  If the state 
        board of education modifies its rules for special education in a 
        manner that increases a district's special education obligations 
        or service requirements, the commissioner shall annually 
        increase each district's special education revenue aid by the 
        amount necessary to compensate for the increased service 
        requirements.  The additional revenue aid equals the cost in the 
        current year attributable to rule changes not reflected in the 
        computation of special education base revenue, multiplied by the 
        appropriate percentages from subdivision 2. 
           (b) Notwithstanding paragraph (a), if the special education 
        base revenue for a district equals zero, the special education 
        revenue aid equals the amount computed according to subdivision 
        2 using current year data. 
           (c) Notwithstanding paragraphs (a) and (b), if the special 
        education base revenue for a district is greater than zero, and 
        the base year amount for the district under subdivision 2, 
        paragraph (a), clause (7), equals zero, the special education 
        revenue aid equals the sum of the amount computed according to 
        paragraph (a), plus the amount computed according to subdivision 
        2, paragraph (a), clause (7), using current year data. 
           Sec. 41.  Minnesota Statutes 1998, section 125A.79, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the definitions in this subdivision apply. 
           (a) "Unreimbursed special education cost" means the sum of 
        the following: 
           (1) expenditures for teachers' salaries, contracted 
        services, supplies, equipment, and transportation services 
        eligible for revenue under section 125A.76; plus 
           (2) expenditures for tuition bills received under sections 
        125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
        under sections 125A.76, subdivision 2, and 124.3202, subdivision 
        1; minus 
           (3) revenue for teachers' salaries, contracted services, 
        supplies, and equipment under sections 124.3202 and 124A.76; 
        minus 
           (4) tuition receipts under sections 125A.03 to 125A.24 and 
        125A.65 for services eligible for revenue under sections 
        124.3202, subdivision 1, and 124A.76, subdivision 2. 
           (b) "General revenue" means for fiscal year 1996, the sum 
        of the general education revenue according to section 126C.10, 
        subdivision 1, as adjusted according to section 127A.47, 
        subdivision 7, plus the total referendum revenue according to 
        section 126C.17, subdivision 4.  For fiscal years 1997 and 
        later, "general revenue" means the sum of the general education 
        revenue according to section 126C.10, subdivision 1, as adjusted 
        according to section 127A.47, subdivision subdivisions 7 and 8, 
        plus the total referendum revenue minus transportation sparsity 
        revenue minus total operating capital revenue.  
           (c) "Average daily membership" has the meaning given it in 
        section 126C.05. 
           (d) "Program growth factor" means 1.044 for fiscal year 
        2002 and 1.02 for fiscal year 2003 and later. 
           Sec. 42.  Minnesota Statutes 1998, section 125A.79, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCESS COST REVENUE AID, FISCAL YEARS 2000 AND 
        2001.] For 1997 and later fiscal years 2000 and 2001, a 
        district's special education excess cost revenue aid equals the 
        greatest of: 
           (a) 70 75 percent of the difference between (1) the 
        district's unreimbursed special education cost and (2) 5.7 4.4 
        percent for fiscal year 1997 and later years of the district's 
        general revenue; 
           (b) 70 percent of the difference between (1) the increase 
        in the district's unreimbursed special education cost between 
        the base year as defined in section 125A.76, subdivision 1, and 
        the current year and (2) 1.6 percent of the district's general 
        revenue; or 
           (c) zero. 
           Sec. 43.  Minnesota Statutes 1998, section 125A.79, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [INITIAL EXCESS COST AID.] For fiscal years 2002 
        and later, a district's initial excess cost aid equals the 
        greatest of: 
           (1) 75 percent of the difference between (i) the district's 
        unreimbursed special education cost and (ii) 4.4 percent of the 
        district's general revenue; 
           (2) 70 percent of the difference between (i) the increase 
        in the district's unreimbursed special education cost between 
        the base year as defined in section 125A.76, subdivision 1, and 
        the current year and (ii) 1.6 percent of the district's general 
        revenue; or 
           (3) zero. 
           Sec. 44.  Minnesota Statutes 1998, section 125A.79, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [STATE TOTAL SPECIAL EDUCATION EXCESS COST 
        AID.] The state total special education excess cost aid for 
        fiscal year 2002 and later fiscal years equals: 
           (1) the state total special education excess cost aid for 
        the preceding fiscal year; times 
           (2) the program growth factor; times 
           (3) the ratio of the state total average daily membership 
        for the current fiscal year to the state total average daily 
        membership for the preceding fiscal year. 
           Sec. 45.  Minnesota Statutes 1998, section 125A.79, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] A 
        district's special education excess cost aid for fiscal year 
        2002 and later equals the state total special education excess 
        cost aid times the ratio of the district's initial excess cost 
        aid to the state total initial excess cost aid. 
           Sec. 46.  Minnesota Statutes 1998, section 125A.79, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [OUT-OF-STATE TUITION.] For children who are 
        residents of the state, receive services under section 125A.76, 
        subdivisions 1 and 2, and are placed in a care and treatment 
        facility by court action in a state that does not have a 
        reciprocity agreement with the commissioner under section 
        125A.115, the resident school district shall submit the balance 
        of the tuition bills, minus the amount of the basic revenue, as 
        defined by section 126C.10, subdivision 2, of the district for 
        the child and the special education aid, and any other aid 
        earned on behalf of the child. 
           Sec. 47.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
        EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
           The commissioner, in cooperation with the commissioners of 
        human services and corrections and with input from appropriate 
        billing system users, shall develop and implement a uniform 
        billing system for school districts and other agencies, 
        including private providers, who provide the educational 
        services for students who are placed out of the home.  The 
        uniform billing system must: 
           (1) allow for the proper and timely billing to districts by 
        service providers with a minimum amount of district 
        administration; 
           (2) allow districts to bill the state for certain types of 
        special education and regular education services as provided by 
        law; 
           (3) provide flexibility for the types of services that are 
        provided for children placed out of the home, including day 
        treatment services; 
           (4) allow the commissioner to track the type, cost, and 
        quality of services provided for children placed out of the 
        home; 
           (5) conform existing special education and proposed regular 
        education billing procedures; 
           (6) provide a uniform reporting standard of per diem rates; 
           (7) determine allowable expenses and maximum reimbursement 
        rates for the state reimbursement of care and treatment services 
        according to section 124D.701; and 
           (8) provide a process for the district to appeal to the 
        commissioner tuition bills submitted to districts and to the 
        state. 
           Sec. 48.  Minnesota Statutes 1998, section 126C.44, is 
        amended to read: 
           126C.44 [CRIME-RELATED COSTS LEVY.] 
           For taxes levied in 1991 and subsequent years, payable in 
        1992 and subsequent years, Each district may make a levy on all 
        taxable property located within the district for the purposes 
        specified in this subdivision.  The maximum amount which may be 
        levied for all costs under this subdivision shall be equal to 
        $1.50 multiplied by the population of the school district. For 
        purposes of this subdivision, "population" of the school 
        district means the same as contained in section 275.14.  The 
        proceeds of the levy must be used for directly funding the 
        following purposes or for reimbursing the cities and counties 
        who contract with the district for the following purposes:  (1) 
        to pay the costs incurred for the salaries, benefits, and 
        transportation costs of peace officers and sheriffs for liaison 
        services in the district's middle and secondary schools; (2) to 
        pay the costs for a drug abuse prevention program as defined in 
        Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
        3, paragraph (f), in the elementary schools; or (3) to pay the 
        costs for a gang resistance education training curriculum in the 
        middle schools; or (4) to pay the costs for other crime 
        prevention and drug abuse and violence prevention measures taken 
        by the school district.  The district must initially attempt to 
        contract for these services to be provided by peace officers or 
        sheriffs with the police department of each city or the 
        sheriff's department of the county within the district 
        containing the school receiving the services.  If a local police 
        department or a county sheriff's department does not wish to 
        provide the necessary services, the district may contract for 
        these services with any other police or sheriff's department 
        located entirely or partially within the school district's 
        boundaries.  The levy authorized under this subdivision is not 
        included in determining the school district's levy limitations. 
           Sec. 49.  Minnesota Statutes 1998, section 127A.45, is 
        amended by adding a subdivision to read: 
           Subd. 12a.  [FORWARD SHIFTED AID PAYMENTS.] Nineteen 
        percent of the state aid in fiscal year 1999, and 31 percent of 
        the state aid in fiscal years 2000 and later received under 
        section 124D.86 must be paid by the state to the recipient 
        school district on July 15 of that year.  The recipient school 
        district must recognize this aid in the same fiscal year as the 
        levy is recognized. 
           Sec. 50.  Minnesota Statutes 1998, section 127A.45, 
        subdivision 13, is amended to read: 
           Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
        subdivisions 11, 12, 12a, and 14, each fiscal year, all 
        education aids and credits in this chapter and chapters 120A, 
        120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
        and section 273.1392, shall be paid at 90 percent of the 
        estimated entitlement during the fiscal year of the 
        entitlement.  The final adjustment payment, according to 
        subdivision 9, must be the amount of the actual entitlement, 
        after adjustment for actual data, minus the payments made during 
        the fiscal year of the entitlement. 
           Sec. 51.  Minnesota Statutes 1998, section 127A.47, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REPORTING; REVENUE FOR HOMELESS.] For all school 
        purposes, unless otherwise specifically provided by law, a 
        homeless pupil is a resident of the school district in which the 
        homeless shelter or other program, center, or facility assisting 
        the homeless pupil or the pupil's family is located that enrolls 
        the pupil. 
           Sec. 52.  Minnesota Statutes 1998, section 241.021, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUPERVISION OVER CORRECTIONAL 
        INSTITUTIONS.] (1) The commissioner of corrections shall inspect 
        and license all correctional facilities throughout the state, 
        whether public or private, established and operated for the 
        detention and confinement of persons detained or confined 
        therein according to law except to the extent that they are 
        inspected or licensed by other state regulating agencies.  The 
        commissioner shall promulgate pursuant to chapter 14, rules 
        establishing minimum standards for these facilities with respect 
        to their management, operation, physical condition, and the 
        security, safety, health, treatment, and discipline of persons 
        detained or confined therein.  Commencing September 1, 1980, no 
        individual, corporation, partnership, voluntary association, or 
        other private organization legally responsible for the operation 
        of a correctional facility may operate the facility unless 
        licensed by the commissioner of corrections.  The commissioner 
        shall review the correctional facilities described in this 
        subdivision at least once every biennium, except as otherwise 
        provided herein, to determine compliance with the minimum 
        standards established pursuant to this subdivision.  The 
        commissioner shall grant a license to any facility found to 
        conform to minimum standards or to any facility which, in the 
        commissioner's judgment, is making satisfactory progress toward 
        substantial conformity and the interests and well-being of the 
        persons detained or confined therein are protected.  The 
        commissioner may grant licensure up to two years.  The 
        commissioner shall have access to the buildings, grounds, books, 
        records, staff, and to persons detained or confined in these 
        facilities.  The commissioner may require the officers in charge 
        of these facilities to furnish all information and statistics 
        the commissioner deems necessary, at a time and place designated 
        by the commissioner.  The commissioner may require that any or 
        all such information be provided through the department of 
        corrections detention information system.  The education program 
        offered in a correctional facility for the detention or 
        confinement of juvenile offenders must be approved by the 
        commissioner of children, families, and learning before the 
        commissioner of corrections may grant a license to the facility. 
           (2) Any state agency which regulates, inspects, or licenses 
        certain aspects of correctional facilities shall, insofar as is 
        possible, ensure that the minimum standards it requires are 
        substantially the same as those required by other state agencies 
        which regulate, inspect, or license the same aspects of similar 
        types of correctional facilities, although at different 
        correctional facilities. 
           (3) Nothing in this section shall be construed to limit the 
        commissioner of corrections' authority to promulgate rules 
        establishing standards of eligibility for counties to receive 
        funds under sections 401.01 to 401.16, or to require counties to 
        comply with operating standards the commissioner establishes as 
        a condition precedent for counties to receive that funding. 
           (4) When the commissioner finds that any facility described 
        in clause (1), except foster care facilities for delinquent 
        children and youth as provided in subdivision 2, does not 
        substantially conform to the minimum standards established by 
        the commissioner and is not making satisfactory progress toward 
        substantial conformance, the commissioner shall promptly notify 
        the chief executive officer and the governing board of the 
        facility of the deficiencies and order that they be remedied 
        within a reasonable period of time.  The commissioner may by 
        written order restrict the use of any facility which does not 
        substantially conform to minimum standards to prohibit the 
        detention of any person therein for more than 72 hours at one 
        time.  When, after due notice and hearing, the commissioner 
        finds that any facility described in this subdivision, except 
        county jails and lockups as provided in sections 641.26, 642.10, 
        and 642.11, does not conform to minimum standards, or is not 
        making satisfactory progress toward substantial compliance 
        therewith, the commissioner may issue an order revoking the 
        license of that facility.  After revocation of its license, that 
        facility shall not be used until its license is renewed.  When 
        the commissioner is satisfied that satisfactory progress towards 
        substantial compliance with minimum standard is being made, the 
        commissioner may, at the request of the appropriate officials of 
        the affected facility supported by a written schedule for 
        compliance, grant an extension of time for a period not to 
        exceed one year. 
           (5) As used in this subdivision, "correctional facility" 
        means any facility, including a group home, having a residential 
        component, the primary purpose of which is to serve persons 
        placed therein by a court, court services department, parole 
        authority, or other correctional agency having dispositional 
        power over persons charged with, convicted, or adjudicated to be 
        guilty or delinquent. 
           Sec. 53.  Minnesota Statutes 1998, section 245A.04, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 
        education program offered in a residential or nonresidential 
        program, except for child care, foster care, or services for 
        adults, must be approved by the commissioner of children, 
        families, and learning before the commissioner of human services 
        may grant a license to the program. 
           Sec. 54.  Minnesota Statutes 1998, section 626.556, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
        INVESTIGATING REPORTS OF MALTREATMENT.] The department of 
        children, families, and learning is the agency responsible for 
        assessing or investigating allegations of child maltreatment in 
        schools as defined in sections 120A.05, subdivisions 9, 11, and 
        13; and 124D.10. 
           Sec. 55.  Laws 1993, chapter 224, article 3, section 32, as 
        amended by Laws 1998, chapter 398, article 2, section 47, is 
        amended to read: 
           Sec. 32.  [ASL GUIDELINES.] 
           (a) In determining appropriate licensure requirements for 
        teachers of deaf and hard of hearing hard-of-hearing students 
        under Minnesota Statutes, section 125.189 122A.28, subdivision 
        1, 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) In order to obtain an initial license to teach deaf and 
        hard of hearing hard-of-hearing students, or to apply for a 
        Minnesota teaching license, after being licensed to teach in 
        another state, 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 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. 
           (i) This section shall not apply to teachers of oral/aural 
        deaf education. 
           Sec. 56.  Laws 1997, First Special Session chapter 4, 
        article 2, section 51, subdivision 29, as amended by Laws 1998, 
        chapter 398, article 2, section 52, is amended to read: 
           Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
        the first grade preparedness program under Minnesota Statutes, 
        section 124.2613, and for school sites that have provided a 
        full-day kindergarten option for kindergarten students enrolled 
        in fiscal years 1996 and 1997: 
             $5,000,000     .....     1998 
             $6,500,000     .....     1999 
           (b) $4,200,000 in fiscal year 1998 must be distributed 
        according to Minnesota Statutes, section 124.2613, subdivision 
        3, and $4,200,000 in fiscal year 1999 must be distributed 
        according to Minnesota Statutes, section 124D.081, subdivision 3.
           (c) $800,000 in fiscal year 1998 must be divided equally 
        among the four geographic regions defined in Minnesota Statutes, 
        section 124.2613, subdivision 3, and $800,000 in fiscal year 
        1999 must be divided equally among the four geographic regions 
        defined in Minnesota Statutes, section 124D.081, subdivision 3, 
        and must first be used to provide funding for school sites that 
        offered an optional full-day kindergarten program during the 
        1996-1997 school year, but did not receive funding for fiscal 
        year 1997 under Minnesota Statutes, section 124.2613.  To be a 
        qualified site, licensed teachers must have taught the optional 
        full-day kindergarten classes.  A district that charged a fee 
        for students participating in an optional full-day program is 
        eligible to receive the grant to provide full-day kindergarten 
        for all students as required by Minnesota Statutes, section 
        124.2613 124D.08, subdivision 4.  Districts with eligible sites 
        must apply to the commissioner of children, families, and 
        learning for a grant. 
           (c) This appropriation must first be used to fund programs 
        operating during the 1996-1997 school year under paragraph (b) 
        and Minnesota Statutes, section 124.2613.  Any remaining funds 
        may be used to expand the number of sites providing first grade 
        preparedness programs according to Minnesota Statutes, section 
        124D.081, subdivision 3. 
           (d) $1,500,000 in fiscal year 1999 shall be divided equally 
        among the four geographic regions defined in Minnesota Statutes, 
        section 124D.081, subdivision 3, and must first be used to 
        eliminate aid proration for sites qualifying under paragraphs 
        (b) and (c).  Any remaining funds may be used to expand the 
        number of sites providing first grade preparedness programs 
        according to Minnesota Statutes, section 124.2613, subdivision 3.
           Sec. 57.  Laws 1999, chapter 123, section 22, is amended to 
        read: 
           Sec. 22.  [EFFECTIVE DATE.] 
           Sections 1, 2, 5 to 18, 20, and 21 are effective July 1, 
        1999, except that the requirement under section 3 5 to provide 
        special instruction and services until the child with a 
        disability becomes 21 years old, instead of 22 years old, is 
        effective July 1, 2002.  Sections 3 and 4 are effective July 1, 
        2002.  Section 19 is effective the day following final enactment.
           Sec. 58.  [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 
        SYSTEM.] 
           The commissioner of children, families, and learning shall 
        design a uniform billing system according to Minnesota Statutes, 
        section 125A.80.  In designing a system, the commissioner shall 
        seek the input from the appropriate users of the billing system. 
           The commissioner shall implement a uniform billing system 
        for education services for children placed out of the home, 
        according to Minnesota Statutes, section 125A.80, by July 1, 
        2000.  The commissioner shall provide training to school 
        districts on the uniform billing system. 
           Sec. 59.  [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 
        EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 
        FACILITIES.] 
           The commissioner of children, families, and learning shall 
        convene a task force to make recommendations on a system to 
        approve education programs serving children at care and 
        treatment facilities, including detention facilities.  The task 
        force shall be chaired by a representative of the department of 
        children, families, and learning and, at a minimum, must include 
        representatives from each of the following organizations:  the 
        department of human services, the department of corrections, the 
        Minnesota school boards association, the Minnesota association 
        of school administrators, Education Minnesota, association of 
        Minnesota counties, Minnesota county attorney association, 
        conference of chief judges, and the Minnesota council of child 
        caring agencies. 
           By February 1, 2000, the commissioner shall submit the task 
        force's recommendations to the education committees of the 
        legislature.  The task force sunsets on February 1, 2000.  
           Sec. 60.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
        For grants to American Indian language and culture education 
        programs according to Minnesota Statutes, section 124D.81, 
        subdivision 1: 
             $730,000     .....     2000
             $730,000     .....     2001
           The 2000 appropriation includes $73,000 for 1999 and 
        $657,000 for 2000.  
           The 2001 appropriation includes $73,000 for 2000 and 
        $657,000 for 2001.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
        American Indian education programs in school districts: 
             $175,000     .....     2000
             $175,000     .....     2001
           The 2000 appropriation includes $17,000 for 1999 and 
        $158,000 for 2000.  
           The 2001 appropriation includes $17,000 for 2000 and 
        $158,000 for 2001.  
           (b) These appropriations are available for expenditure with 
        the approval of the commissioner of the department of children, 
        families, and learning. 
           (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 Pine Point School; $9,800 to independent school district 
        No. 166, Cook county; $14,900 to independent school district No. 
        432, Mahnomen; $14,200 to independent school district No. 435, 
        Waubun; $42,200 to independent school district No. 707, Nett 
        Lake; and $39,100 to independent school district No. 38, Red 
        Lake.  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 123B.75 to 123B.83. 
           Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
        GRANTS.] For American Indian post-secondary preparation grants 
        according to Minnesota Statutes, section 124D.85: 
             $982,000     .....     2000
             $982,000     .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
        Indian scholarships according to Minnesota Statutes, section 
        124D.84: 
             $1,875,000   .....     2000 
             $1,875,000   .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
        joint grants to assist Indian people to become teachers: 
             $190,000     .....     2000 
             $190,000     .....     2001 
           (b) Up to $70,000 each year is for a joint grant to the 
        University of Minnesota at Duluth and independent school 
        district No. 709, Duluth. 
           (c) Up to $40,000 each year is for a joint grant to each of 
        the following: 
           (1) Bemidji state university and independent school 
        district No. 38, Red Lake; 
           (2) Moorhead state university and a school district located 
        within the White Earth reservation; and 
           (3) Augsburg college, independent school district No. 625, 
        St. Paul, and special school district No. 1, Minneapolis. 
           (d) Money not used for students at one location may be 
        transferred for use at another location. 
           (e) Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid according to Minnesota Statutes, section 124D.83: 
             $2,706,000  .....     2000
             $2,790,000  .....     2001
           The 2000 appropriation includes $283,000 for 1999 and 
        $2,423,000 for 2000. 
           The 2001 appropriation includes $269,000 for 2000 and 
        $2,521,000 for 2001. 
           Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
        early childhood family education programs at tribal contract 
        schools: 
             $68,000     .....     2000 
             $68,000     .....     2001 
           Subd. 9.  [MAGNET SCHOOL GRANTS.] For magnet school and 
        program grants: 
             $1,750,000  .....     2000 
             $1,750,000  .....     2001 
           These amounts may be used for magnet school programs 
        according to Minnesota Statutes, section 124D.88. 
           Subd. 10.  [INTEGRATION PROGRAMS.] For minority fellowship 
        grants according to Laws 1994, chapter 647, article 8, section 
        29; minority teacher incentives according to Minnesota Statutes, 
        section 122A.65; teachers of color grants according to Minnesota 
        Statutes, section 122A.64; and cultural exchange grants 
        according to Minnesota Statutes, section 124D.89: 
             $1,000,000     .....     2000
             $1,000,000     .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           In awarding teacher of color grants, priority must be given 
        to districts that have students who are currently in the process 
        of completing their academic program. 
           Subd. 11.  [SPECIAL EDUCATION AID.] For special education 
        aid according to Minnesota Statutes, section 125A.75: 
             $456,015,000   .....     2000 
             $472,900,000   .....     2001 
           The 2000 appropriation includes $39,300,000 for 1999 and 
        $416,715,000 for 2000.  
           The 2001 appropriation includes $46,300,000 for 2000 and 
        $426,600,000 for 2001.  
           Subd. 12.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
        according to Minnesota Statutes, section 125A.75, subdivision 3, 
        for children with a disability placed in residential facilities 
        within the district boundaries for whom no district of residence 
        can be determined: 
             $  443,000   .....     2000 
             $1,064,000   .....     2001 
           If the appropriation for either year is insufficient, the 
        appropriation for the other year is available.  Any balance in 
        the first year does not cancel but is available in the second 
        year. 
           Subd. 13.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
        teacher travel for home-based services according to Minnesota 
        Statutes, section 125A.75, subdivision 1: 
             $133,000     .....     2000 
             $139,000     .....     2001 
           The 2000 appropriation includes $11,000 for 1999 and 
        $122,000 for 2000.  
           The 2001 appropriation includes $13,000 for 2000 and 
        $126,000 for 2001.  
           Subd. 14.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
        cost aid: 
             $60,498,000    .....     2000 
             $79,405,000    .....     2001 
           The 2000 appropriation includes $4,693,000 for 1999 and 
        $55,805,000 for 2000.  
           The 2001 appropriation includes $6,200,000 for 2000 and 
        $73,205,000 for 2001. 
           Subd. 15.  [CAREER AND TECHNICAL PROGRAMS; CHILDREN WITH 
        DISABILITIES.] For aid for career and technical programs for 
        children with disabilities according to Minnesota Statutes, 
        section 124D.454: 
             $8,892,000     .....     2000 
             $8,968,000     .....     2001 
           The 2000 appropriation includes $808,000 for 1999 and 
        $8,084,000 for 2000.  
           The 2001 appropriation includes $898,000 for 2000 and 
        $8,070,000 for 2001.  
           Subd. 16.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
        education levy equalization aid according to Minnesota Statutes, 
        section 125A.77: 
             $526,000      .....     2000
           The 2000 appropriation includes $526,000 for 1999 and $0 
        for 2000.  
           Subd. 17.  [INTEGRATION AID.] For integration aid: 
             $37,182,000   .....     2000 
             $43,787,000   .....     2001 
           The 2000 appropriation includes $2,902,000 for 1999 and 
        $34,280,000 for 2000. 
           The 2001 appropriation includes $3,809,000 for 2000 and 
        $39,978,000 for 2001.  
           Subd. 18.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
        additional revenue for homeless students according to Minnesota 
        Statutes, section 124D.70: 
             $20,000       .....     2000
           The 2000 appropriation includes $20,000 for 1999 and $0 for 
        2000. 
           Subd. 19.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION AID.] For interdistrict desegregation or 
        integration transportation aid under Minnesota Statutes, section 
        124D.87: 
             $970,000       .....     2000
             $970,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year.  
           Subd. 20.  [ADOLESCENT PARENTING GRANTS.] For adolescent 
        parenting grants under Laws 1997, chapter 162, article 2, 
        section 28: 
             $300,000       .....     2000 
           This appropriation is available until June 30, 2001.* (The 
        preceding subdivision was vetoed by the governor.) 
           Subd. 21.  [CENTER FOR VICTIMS OF TORTURE.] For the center 
        for victims of torture to provide training, consultation, and 
        support services in public schools with significant populations 
        of traumatized refugee and immigrant students: 
             $75,000        .....     2000 
             $75,000        .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 22.  [OUT-OF-STATE TUITION.] For out-of-state tuition 
        under Minnesota Statutes, section 125A.79, subdivision 8: 
             $250,000       .....     2001 
           If the appropriation under this section is insufficient to 
        cover the expenses submitted by districts, the commissioner 
        shall prorate the aid to districts based on the expenses 
        submitted by districts. 
           Subd. 23.  [UNIFORM BILLING SYSTEM; TECHNICAL 
        ASSISTANCE.] For implementing an effective and efficient uniform 
        billing system for the educational costs of students placed out 
        of the home: 
             $50,000        .....     2000 
           Subd. 24.  [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE 
        AND TREATMENT FACILITIES.] For developing and implementing a 
        system to approve education costs of students placed out of the 
        home: 
             $50,000        .....     2000 
           This appropriation is available until June 30, 2001. 
           Subd. 25.  [FIRST-GRADE PREPAREDNESS GRANTS.] For grants 
        for the first-grade preparedness program under Minnesota 
        Statutes, section 124D.081: 
             $7,000,000     .....     2000 
             $7,000,000     .....     2001 
           For each year, the appropriation must first be used to fund 
        programs operating during the 1998-1999 school year, unless the 
        site's ranking, as determined by Minnesota Statutes, section 
        124D.081, subdivision 3, falls below the state average for 
        elementary schools.  Any remaining funds may be used to expand 
        the number of sites according to Minnesota Statutes, section 
        124D.081, subdivision 3. 
           Subd. 26.  [LITIGATION COSTS.] For paying the costs a 
        district incurs under Minnesota Statutes, section 125A.75, 
        subdivision 8: 
             $375,000     .....     2000
             $375,000     .....     2001
           Subd. 27.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
        reimbursing serving school districts for unreimbursed eligible 
        expenditures attributable to children placed in the serving 
        school district by court action under Minnesota Statutes, 
        section 125A.79, subdivision 4: 
             $350,000     .....     2000 
             $350,000     .....     2001
           This appropriation is available until June 30, 2001. 
           Subd. 28.  [ROCHESTER SCHOOL DISTRICT.] For a special 
        education revenue adjustment for independent school district No. 
        535, Rochester: 
             $150,000     .....     2000 
             $ 15,000     .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year.  
           Sec. 61.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes 
        and Minnesota Rules, the revisor shall change all references to 
        the "Faribault academies" to the "Minnesota state academies." 
           Sec. 62.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 124D.081, 
        subdivisions 7 and 8; 124D.65, subdivision 3; 125A.76, 
        subdivision 6; 125A.77; and 125A.79, subdivision 3, are repealed.
           (b) Minnesota Statutes 1998, section 124D.70, is repealed 
        effective July 1, 2000. 
           Sec. 63.  [EFFECTIVE DATES.] 
           Sections 8, 49, and 50 are effective the day following 
        final enactment for revenue for fiscal year 1999 and later.  
        Sections 19, 21, 22, 35, 38, 46, 52, and 53 are effective July 
        1, 2000.  Sections 20 and 23 to 34 are effective December 31, 
        1999.  Sections 36 and 56 are effective the day following final 
        enactment. 
                                   ARTICLE 3 
                              LIFEWORK DEVELOPMENT 
           Section 1.  Minnesota Statutes 1998, section 124D.453, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SECONDARY VOCATIONAL AID.] A district's 
        secondary vocational education aid for a fiscal year 2000 equals 
        the lesser of: 
           (a) $80 $73 times the district's average daily membership 
        in grades 10 to 12; or 
           (b) 25 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 7; 
           (3) necessary travel between instructional sites by 
        licensed secondary vocational education personnel; 
           (4) necessary travel by licensed secondary vocational 
        education personnel for vocational student organization 
        activities held within the state for instructional purposes; 
           (5) curriculum development activities that are part of a 
        five-year plan for improvement based on program assessment; 
           (6) necessary travel by licensed secondary vocational 
        education personnel for noncollegiate credit bearing 
        professional development; and 
           (7) specialized vocational instructional supplies. 
           (c) Up to ten percent of a district's secondary vocational 
        aid may be spent on equipment purchases.  Districts using 
        secondary vocational aid for equipment purchases must report to 
        the department on the improved learning opportunities for 
        students that result from the investment in equipment.  
           Sec. 2.  Laws 1997, First Special Session chapter 4, 
        article 3, section 25, subdivision 6, is amended to read: 
           Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
        independent school district No. 330, Heron Lake-Okabena, to 
        establish the Southwest Star Concept School: 
             $193,000     .....     1998
           This appropriation may be used for equipment, activities 
        beyond the classroom walls, professional planning assistance, 
        monitoring, evaluating, and reporting activities related to the 
        case study prepared in section 22. 
           This appropriation is available until June 30, 1999. 
           Sec. 3.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
        secondary vocational education aid according to Minnesota 
        Statutes, section 124D.453: 
             $11,335,000     .....     2000 
             $1,130,000      .....     2001 
           The 2000 appropriation includes $1,159,000 for 1999 and 
        $10,176,000 for 2000.  The 2001 appropriation includes 
        $1,130,000 for 2000.  
           Subd. 3.  [YOUTHWORKS PROGRAMS.] For funding youthworks 
        programs according to Minnesota Statutes, sections 124D.37 to 
        124D.45: 
             $1,788,000     .....     2000 
             $1,788,000     .....     2001 
           A grantee organization may provide health and child care 
        coverage to the dependents of each participant enrolled in a 
        full-time youthworks program to the extent such coverage is not 
        otherwise available. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
        GRANTS.] For education and employment transitions programming 
        under Minnesota Statutes, section 124D.46: 
             $3,225,000     .....     2000 
             $3,225,000     .....     2001 
           $200,000 each year is for the development and 
        implementation of the ISEEK Internet-based education and 
        employment information system. 
           $1,000,000 each year is for an employer rebate program for 
        qualifying employers who offer youth internships to educators. 
           $500,000 each year is for youth entrepreneurship grants.  
           $750,000 each year is for youth apprenticeship grants. 
           $300,000 each year is for grants to programs in cities of 
        the first class to expand the number of at-risk students 
        participating in school-to-work projects. 
           $350,000 each year is for agricultural school-to-work 
        grants. 
           $125,000 each year is to conduct a high school follow-up 
        survey to include first, third, and sixth year graduates of 
        Minnesota schools. 
           Subd. 5.  [LEARN AND EARN GRADUATION ACHIEVEMENT 
        PROGRAM.] For the learn and earn graduation achievement program 
        under Minnesota Statutes, section 124D.32: 
             $  725,000     .....     2000 
             $  725,000     .....     2001 
           This appropriation is available until June 30, 2001. 
           Subd. 6.  [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 
        FOUNDATION.] For the Minnesota school-to-work student 
        organization foundation under Minnesota Statutes, section 
        124D.34: 
             $  625,000     .....     2000 
             $  625,000     .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 4.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes 
        the revisor shall: 
           (1) in Minnesota Statutes, section 124D.34, subdivisions 2 
        and 3, change all references to "Minnesota school-to-work 
        student organization foundation" to "Minnesota Foundation for 
        Student Organizations"; 
           (2) in Minnesota Statutes, sections 124D.34 and 124D.453, 
        change all references to "secondary vocational" to "career and 
        technical"; 
           (3) in Minnesota Statutes, section 124D.454, change all 
        references to "school-to-work" to "transition." 
           Sec. 5.  [REPEALER.] 
           Minnesota Statutes 1998, section 124D.453, is repealed 
        effective for revenue for fiscal year 2001. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Section 2 is effective retroactive to July 1, 1997. 
                                   ARTICLE 4 
                           FACILITIES AND TECHNOLOGY 
           Section 1.  Minnesota Statutes 1998, section 123B.53, 
        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 123B.71, if the commissioner has 
        determined that the district has met the criteria under section 
        126C.69, subdivision 3, except section 126C.69, subdivision 3, 
        paragraph (a), clause (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 126C.69, subdivision 3, 
        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) if grades 9 through 12 are to be served by the 
        facility, and an average of at least 66 pupils per grade in 
        these grades are served; or 
           (ii) is eligible for elementary or secondary sparsity 
        revenue. 
           (c) The criterion in section 126C.69, subdivision 3, 
        paragraph (a), clause (2), shall also be considered to have been 
        met if the construction project under review serves students in 
        kindergarten to grade 8.  Only the debt service levy for that 
        portion of the facility serving students in prekindergarten to 
        grade 8, as determined by the commissioner, shall be eligible 
        for debt service equalization under this paragraph. 
           (d) The criterion described in section 126C.69, subdivision 
        3, paragraph (a), clause (9), does not apply to bonds authorized 
        by elections held before July 1, 1992. 
           (e) (c) For the purpose of this subdivision the department 
        shall determine the eligibility for sparsity at the location of 
        the new facility, or the site of the new facility closest to the 
        nearest operating school if there is more than one new facility. 
           (f) (d) Notwithstanding paragraphs (a) to (e) (c), debt 
        service for repayment of principal and interest on bonds issued 
        after July 1, 1997, does not qualify for debt service 
        equalization aid unless the primary purpose of the facility is 
        to serve students in kindergarten through grade 12. 
           Sec. 2.  Minnesota Statutes 1998, section 123B.53, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
        fiscal years 1995 and later, The debt service equalization 
        revenue of a district equals the eligible debt service revenue 
        minus the amount raised by a levy of ten 12 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. 3.  Minnesota Statutes 1998, section 123B.53, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
        service equalization revenue, a district must levy an amount not 
        to exceed the district's debt service equalization 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 resident adjusted pupil units in the 
        district for the school year ending in the year prior to the 
        year the levy is certified; to 
           (2) $4,707.50 $4,000. 
           Sec. 4.  Minnesota Statutes 1998, section 123B.53, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] A district's 
        debt service equalization aid is the difference between the debt 
        service equalization revenue and the equalized debt service levy.
        If the amount of debt service equalization aid actually 
        appropriated for the fiscal year in which this calculation is 
        made is insufficient to fully fund debt service equalization 
        aid, the commissioner shall prorate the amount of aid across all 
        eligible districts. 
           Sec. 5.  Minnesota Statutes 1998, section 123B.53, 
        subdivision 7, is amended to read: 
           Subd. 7.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
        Debt service equalization aid must be paid as follows:  30 
        percent before September 15, 30 percent before December 15, 30 
        percent before March 15, and a final payment of ten percent by 
        July 15 of the subsequent fiscal year according to section 
        127A.45, subdivision 10. 
           Sec. 6.  Minnesota Statutes 1998, section 123B.54, is 
        amended to read: 
           123B.54 [DEBT SERVICE APPROPRIATION.] 
           (a) $35,480,000 $33,165,000 in fiscal year 
        1998 2000, $38,159,000 $32,057,000 in fiscal year 1999 2001, 
        and $38,390,000 $31,280,000 in fiscal year 2000 2002 and each 
        year thereafter is appropriated from the general fund to the 
        commissioner of children, families, and learning for payment of 
        debt service equalization aid under section 123B.53.  The 2000 
        2002 appropriation includes $3,842,000 $3,201,000 for 1999 
        2001 and $34,548,000 $29,079,000 for 2000 2002. 
           (b) The appropriations in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           Sec. 7.  Minnesota Statutes 1998, section 123B.57, 
        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 resident adjusted marginal cost pupil units in the 
        district for the school year to which the levy is attributable, 
        to $4,707.50 $3,956. 
           Sec. 8.  Minnesota Statutes 1998, section 123B.59, 
        subdivision 1, is amended to read: 
           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 15 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. 
           Sec. 9.  Minnesota Statutes 1998, section 123B.61, is 
        amended to read: 
           123B.61 [PURCHASE OF CERTAIN EQUIPMENT.] 
           The board of a district may issue general obligation 
        certificates of indebtedness or capital notes subject to the 
        district debt limits to purchase:  (a) purchase vehicles, 
        computers, telephone systems, cable equipment, photocopy and 
        office equipment, technological equipment for instruction, and 
        other capital equipment having an expected useful life at least 
        as long as the terms of the certificates or 
        notes; and (b) purchase computer hardware and software, without 
        regard to its expected useful life, whether bundled with 
        machinery or equipment or unbundled, together with application 
        development services and training related to the use of the 
        computer; and (c) prepay special assessments.  The certificates 
        or notes must be payable in not more than five years and must be 
        issued on the terms and in the manner determined by the board, 
        except that certificates or notes issued to prepay special 
        assessments must be payable in not more than 20 years.  The 
        certificates or notes may be issued by resolution and without 
        the requirement for an election.  The certificates or notes are 
        general obligation bonds for purposes of section 126C.55.  A tax 
        levy must be made for the payment of the principal and interest 
        on the certificates or notes, in accordance with section 475.61, 
        as in the case of bonds.  The sum of the tax levies under this 
        section and section 123B.62 for each year must not exceed the 
        amount of the district's total operating capital revenue for the 
        year the initial debt service levies are certified.  The 
        district's general education levy for each year must be reduced 
        by the sum of (1) the amount of the tax levies for debt service 
        certified for each year for payment of the principal and 
        interest on the certificates or notes as required by section 
        475.61, and (2) any excess amount in the debt redemption fund 
        used to retire certificates or notes issued after April 1, 1997, 
        other than amounts used to pay capitalized interest.  A district 
        using an excess amount in the debt redemption fund to retire the 
        certificates or notes shall report the amount used for this 
        purpose to the commissioner by July 15 of the following fiscal 
        year.  A district having an outstanding capital loan under 
        section 126C.69 or an outstanding debt service loan under 
        section 126C.68 must not use an excess amount in the debt 
        redemption fund to retire the certificates or notes. 
           Sec. 10.  Minnesota Statutes 1998, section 124D.88, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
        school districts that meets the criteria required under 
        paragraph (b)(i)(1) may apply for a magnet school grant in an 
        amount not to exceed $15,000,000 $20,800,000 for the approved 
        costs or expansion of a magnet school facility. 
           (b)(i)(1) Any group of districts that submits an 
        application for a grant shall submit a proposal to the 
        commissioner for review and comment under section 123B.71, and 
        the commissioner shall prepare a review and comment on the 
        proposed magnet school facility, regardless of the amount of the 
        capital expenditure required to design, acquire, construct, 
        remodel, improve, furnish, or equip the facility.  The 
        commissioner must not approve an application for a magnet school 
        grant for any facility unless the facility receives a favorable 
        review and comment under section 123B.71 and the participating 
        districts: 
           (1) (i) establish a joint powers board under section 471.59 
        to represent all participating districts and govern the magnet 
        school facility; 
           (2) (ii) design the planned magnet school facility to meet 
        the applicable requirements contained in Minnesota Rules, 
        chapter 3535; 
           (3) (iii) submit a statement of need, including reasons why 
        the magnet school will facilitate integration and improve 
        learning; 
           (4) (iv) prepare an educational plan that includes input 
        from both community and professional staff; and 
           (5) (v) develop an education program that will improve 
        learning opportunities for students attending the magnet school. 
           (ii) (2) The districts may develop a plan that permits 
        social service, health, and other programs serving students and 
        community residents to be located within the magnet school 
        facility.  The commissioner shall consider this plan when 
        preparing a review and comment on the proposed facility.  
           (c) When two or more districts enter into an agreement 
        establishing a joint powers board to govern the magnet school 
        facility, all member districts shall have the same powers.  
           (d) A joint powers board of participating school districts 
        established under paragraphs (b) and (c) that intends to apply 
        for a grant must adopt a resolution stating the costs of the 
        proposed project, the purpose for which the debt is to be 
        incurred, and an estimate of the dates when the contracts for 
        the proposed project will be completed.  A copy of the 
        resolution must accompany any application for a state grant 
        under this section. 
           (e)(i)(1) The commissioner shall examine and consider all 
        grant applications.  If the commissioner finds that any joint 
        powers district is not a qualified grant applicant, the 
        commissioner shall promptly notify that joint powers board.  The 
        commissioner shall make awards to no more than two qualified 
        applicants whose applications have been on file with the 
        commissioner more than 30 days.  
           (ii) (2) A grant award is subject to verification by the 
        joint powers board under paragraph (f).  A grant award must not 
        be made until the participating districts determine the site of 
        the magnet school facility.  If the total amount of the approved 
        applications exceeds the amount of grant funding that is or can 
        be made available, the commissioner shall allot the available 
        amount equally between the approved applicant districts.  The 
        commissioner shall promptly certify to each qualified joint 
        powers board the amount, if any, of the grant awarded to it. 
           (f) Each grant must be evidenced by a contract between the 
        joint powers board and the state acting through the 
        commissioner.  The contract obligates the state to pay to the 
        joint powers board an amount computed according to paragraph 
        (e)(ii)(2) and a schedule, and terms and conditions acceptable 
        to the commissioner of finance. 
           (g) Notwithstanding the provisions of section 123B.02, 
        subdivision 3, the joint powers and its individual members may 
        enter into long-term lease agreements as part of the magnet 
        school program.  
           Sec. 11.  Minnesota Statutes 1998, section 125B.20, is 
        amended to read: 
           125B.20 [TELECOMMUNICATION ACCESS GRANT AND STATEWIDE 
        COORDINATION.] 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The purpose of 
        developing a statewide school district telecommunications 
        network is to expand the availability of a broad range of 
        courses and degrees to students throughout the state, to share 
        information resources to improve access, quality, and 
        efficiency, to improve learning, and distance cooperative 
        learning opportunities, and to promote the exchange of ideas 
        among students, parents, teachers, media generalists, 
        librarians, and the public.  In addition, through the 
        development of this statewide telecommunications network 
        emphasizing cost-effective, competitive connections, all 
        Minnesotans will benefit by enhancing access to 
        telecommunications technology throughout the state.  Network 
        connections for school districts and public libraries will be 
        are coordinated and fully integrated into the existing state 
        telecommunications and interactive television networks to 
        achieve comprehensive and efficient interconnectivity of school 
        districts and libraries to higher education institutions, state 
        agencies, other governmental units, agencies, and institutions 
        throughout Minnesota.  A school district may apply to the 
        commissioner for a grant under subdivision 2, and a regional 
        public library may apply under subdivision 3.  The Minnesota 
        education telecommunication council established in Laws 1995, 
        First Special Session chapter 3, article 12, section 7, shall 
        establish priorities for awarding grants, making grant awards, 
        and being responsible for the coordination of networks. 
           Subd. 2.  [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) 
        Priority will be given to a school district that has not 
        received access to interactive video, data connection, or both 
        under the telecommunications access grant program.  Districts 
        may apply for a grant under this subdivision to:  (1) establish 
        connections among school districts, and between school districts 
        and the state information infrastructure administered by the 
        department of administration under section 16B.465; or (2) if 
        such a connection meeting minimum electronic connectivity 
        standards is already established, enhance telecommunications 
        capacity for a school district.  The minimum standards of 
        capacity are a 56 kilobyte data line and 768 kilobyte ITV 
        connection, subject to change based on the recommendations by 
        the Minnesota education telecommunications council.  A district 
        may submit a grant application for interactive television with 
        higher capacity connections in order to maintain multiple 
        simultaneous connections.  To ensure coordination among school 
        districts, a school district must submit its grant application 
        to the council through an organization that coordinates the 
        applications and connections of at least ten school districts or 
        through an existing technology cooperative the 
        telecommunications access grant cluster of which the district is 
        a member.  
           (b) The application must, at a minimum, contain information 
        to document for each applicant school district the following: 
           (1) that the proposed connection meets the minimum 
        standards and employs an open network architecture that will 
        ensure interconnectivity and interoperability with other 
        education institutions and libraries; 
           (2) that the proposed connection and system will be 
        connected to the state information infrastructure through the 
        department of administration under section 16B.465 and that a 
        network service and management agreement is in place; 
           (3) that the proposed connection and system will be 
        connected to the higher education telecommunication network and 
        that a governance agreement has been adopted which includes 
        agreements between the school district system, a higher 
        education regional council, libraries, and coordinating 
        entities; 
           (4) the telecommunication vendor selected to provide 
        service from the district to a state information infrastructure 
        hub or to a more cost-effective connection point to the state 
        information infrastructure; and 
           (5) other information, as determined by the commissioner in 
        consultation with the education telecommunications council, to 
        ensure that connections are coordinated, meet state standards 
        and are cost-effective, and that service is provided in an 
        efficient and cost-effective manner. 
           (c) A school district may include, in its grant 
        application, telecommunications access for collaboration with 
        nonprofit arts organizations for the purpose of educational 
        programs, or access for a secondary media center that:  (1) is a 
        member of a multitype library system; (2) is open during periods 
        of the year when classroom instruction is occurring; and (3) has 
        licensed school media staff on site. 
           (d) The Minnesota education telecommunications council 
        shall award grants and the funds shall be dispersed by the 
        commissioner.  The highest priority for these grants shall be to 
        bring school districts up to the minimum connectivity standards. 
        A grant to enhance telecommunications capacity beyond the 
        minimum connectivity standards shall be no more than 75 percent 
        of the maximum grant under this subdivision.  Grant applications 
        for minimum connection and enhanced telecommunications capacity 
        grants must be submitted to the commissioner by a coordinating 
        organization including, but not limited to, service cooperatives 
        and education districts.  Grant applications must be submitted 
        to the commissioner by a telecommunications access grant cluster 
        organization.  For the purposes of the grant, a school district 
        may include a charter school under section 124D.10, or the 
        Faribault academies.  Based on the award made by the council, 
        all grants under this subdivision shall be paid by the 
        commissioner directly to a school district (unless this 
        application requests that the funds be paid to the coordinating 
        agency).  Nonpublic schools as defined in section 237.065, 
        subdivision 2, located within the district may access the 
        network.  The nonpublic school is responsible for actual costs 
        for connection from the school to the access site. 
           (e) Money awarded under this section may be used only for 
        the purposes explicitly stated in the grant application. 
           Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A 
        regional public library system may apply for a telecommunication 
        access grant.  Priority will be given to public libraries that 
        have not received access to data connection under the 
        telecommunications access grant program.  The grant must be used 
        to create or expand the capacity of electronic data access and 
        connect the library system with the state information 
        infrastructure administered by the department of administration 
        under section 16B.465.  Connections must meet minimum system 
        standards of a 56 kilobyte data line and 768 kilobyte ITV 
        connection.  To be eligible for a telecommunications access 
        grant, a regional public library system must:  (1) meet the 
        level of local support required under section 134.34; and (2) be 
        open at least 20 hours per week. 
           (b) Any grant award under this subdivision may not be used 
        to substitute for any existing local funds allocated to provide 
        electronic access, or equipment for library staff or the public, 
        or local funds previously dedicated to other library operations. 
           (c) An application for a regional public library 
        telecommunications access grant must, at a minimum, contain 
        information to document the following: 
           (1) that the connection meets the minimum standards and 
        employs an open network architecture that will ensure 
        interconnectivity and interoperability with other libraries and 
        the educational system; 
           (2) that the connection is being established through the 
        most cost-effective means and that the public library has 
        explored and coordinated connections through school districts or 
        other governmental agencies; 
           (3) that the proposed connection and system will be 
        connected to the state information infrastructure through the 
        department of administration under section 16B.465 and that a 
        network service and management agreement is in place; 
           (4) that the proposed connection and system will be 
        connected to the higher education and to the school district 
        telecommunication networks subject to a governance agreement 
        with one or more school districts and a higher education 
        regional council specifying how the system will be coordinated; 
           (5) the telecommunication vendor selected to provide 
        service from the library to a state information infrastructure 
        hub or through a more cost-effective connection point to the 
        state information infrastructure; and 
           (6) other information, as determined by the commissioner, 
        to ensure that connections are coordinated, meet state 
        standards, are cost-effective, and that service is provided in 
        an efficient and cost-effective manner so that libraries 
        throughout the state are connected in as seamless a manner as 
        technically possible. 
           Subd. 4.  [AWARD OF GRANTS.] The council shall develop 
        application forms and procedures for school district minimum 
        connectivity grants, enhanced telecommunications grants, and 
        regional library telecommunication access grants.  The council 
        shall select the grant recipient and shall promptly notify any 
        applicant that is found not to be qualified.  The commissioner 
        shall make the grant payments directly to the school district or 
        regional library system.  At the request of the district or 
        regional library system, the commissioner may make the grant 
        payment directly to the coordinating organization.  If 
        appropriations are insufficient to fund all applications, the 
        commissioner shall first fully fund the minimum connectivity 
        grants.  Unsuccessful applicants may reapply for a grant. 
           Subd. 5.  [E-RATES.] The telecommunication access grant 
        clusters are required to file e-rate applications for 
        telecommunication access grant-related expenditures on behalf of 
        grant participants in their clusters.  Discounts received on 
        telecommunication access grant expenditures shall be used to 
        offset or reduce operations funding provided by the state. 
           Sec. 12.  Minnesota Statutes 1998, section 126C.40, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTERACTIVE TELEVISION.] (a) A district with its 
        central administrative office located within economic 
        development region one, two, three, four, five, six, seven, 
        eight, nine, and ten may apply to the commissioner for ITV 
        revenue up to the greater of .5 .6 percent of the adjusted net 
        tax capacity of the district or $25,000.  Eligible interactive 
        television expenditures include the construction, maintenance, 
        and lease costs of an interactive television system for 
        instructional purposes.  An eligible school district that has 
        completed the construction of its interactive television system 
        may also purchase computer hardware and software used primarily 
        for instructional purposes and access to the Internet provided 
        that its total expenditures for interactive television 
        maintenance and lease costs and for computer hardware and 
        software under this subdivision do not exceed its interactive 
        television revenue for fiscal year 1998.  The approval by the 
        commissioner and the application procedures set forth in 
        subdivision 1 shall apply to the revenue in this subdivision.  
        In granting the approval, the commissioner shall 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 resident adjusted marginal cost pupil units 
        in the district for the year to which the levy is attributable; 
        to 
           (2) $10,000 $8,404.  
           (c) A district's ITV aid is the difference between its ITV 
        revenue and the ITV levy. 
           (d) The revenue in the first year after reorganization for 
        a district that has reorganized under sections 123A.35 to 
        123A.41, 123A.46, or 123A.48 shall be the greater of: 
           (1) the revenue computed for the reorganized district under 
        paragraph (a), or 
           (2)(i) for two districts that reorganized, 75 percent of 
        the revenue computed as if the districts involved in the 
        reorganization were separate, or 
           (ii) for three or more districts that reorganized, 50 
        percent of the revenue computed as if the districts involved in 
        the reorganization were separate. 
           (e) The revenue in paragraph (d) is increased by the 
        difference between the initial revenue and ITV lease costs for 
        leases that had been entered into by the preexisting districts 
        on the effective date of the consolidation or combination and 
        with a term not exceeding ten years.  This increased revenue is 
        only available for the remaining term of the lease.  However, in 
        no case shall the revenue exceed the amount available had the 
        preexisting districts received revenue separately. 
           (f) Effective for fiscal year 2000, the revenue under this 
        section shall be 75 percent of the amount determined in 
        paragraph (a); for fiscal year 2001, 50 percent of the amount in 
        paragraph (a); and for fiscal year 2002, 25 percent of the 
        amount in paragraph (a). 
           (g) This section subdivision expires effective for revenue 
        for fiscal year 2003, or when leases in existence on the 
        effective date of Laws 1997, First Special Session chapter 4, 
        expire.  
           Sec. 13.  Minnesota Statutes 1998, section 126C.55, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
        commissioner of finance may enter into written agreements or 
        contracts relating to the continuing disclosure of information 
        needed to facilitate the ability of school districts to issue 
        debt obligations according to federal securities laws, rules, 
        and regulations, including securities and exchange commission 
        rules and regulations, section 240.15c2-12.  Such agreements or 
        contracts may be in any form the commissioner of finance deems 
        reasonable and in the state's best interests. 
           Sec. 14.  Minnesota Statutes 1998, section 126C.63, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LEVY.] "Levy" means a district's net debt 
        service levy after the reduction of debt service equalization 
        aid under section 123B.53, subdivision 6.  For taxes payable in 
        1994 and later, each district's maximum effort debt service levy 
        for purposes of subdivision 8, must 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 must not be reduced below 18.74 22.3 percent of the 
        district's adjusted net tax capacity. 
           Sec. 15.  Minnesota Statutes 1998, section 126C.63, 
        subdivision 8, is amended to read: 
           Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
        effort debt service levy" means the lesser of: 
           (1) a levy in whichever of the following amounts is 
        applicable: 
           (a) in any district receiving a debt service loan for a 
        debt service levy payable in 1991 and thereafter, or granted a 
        capital loan after January 1, 1990, a levy in a total dollar 
        amount computed at a rate of 20 24 percent of adjusted net tax 
        capacity for taxes payable in 1991 and thereafter; 
           (b) in any district granted a debt service loan after July 
        31, 1981, or granted a capital loan which is approved after July 
        31, 1981, a levy in a total dollar amount computed as a tax rate 
        of 13.08 percent on the adjusted gross tax capacity for taxes 
        payable in 1990 or a tax rate of 18.42 21.92 percent on the 
        adjusted net tax capacity for taxes payable in 1991 and 
        thereafter; 
           (c) in any district granted a debt service loan before 
        August 1, 1981, or granted a capital loan which was approved 
        before August 1, 1981, a levy in a total dollar amount computed 
        as a tax rate of 12.26 percent on the adjusted gross tax 
        capacity for taxes payable in 1990 or a tax rate of 17.17 
        percent on the adjusted net tax capacity for taxes payable in 
        1991 and thereafter, until and unless the district receives an 
        additional loan; or 
           (2) a levy in whichever of the following amounts is 
        applicable: 
           (a) in any district which received a debt service or 
        capital loan from the state before January 1, 1965, a levy in a 
        total dollar amount computed as 4.10 mills on the market value 
        in each year, unless the district applies or has applied for an 
        additional loan subsequent to January 1, 1965, or issues or has 
        issued bonds on the public market, other than bonds refunding 
        state loans, subsequent to January 1, 1967; 
           (b) in any district granted a debt service or capital loan 
        between January 1, 1965, and July 1, 1969, a levy in a total 
        dollar amount computed as 5-1/2 mills on the market value in 
        each year, until and unless the district receives an additional 
        loan; 
           (c) in any district granted a debt service or capital loan 
        between July 1, 1969, and July 1, 1975, a levy in a total dollar 
        amount computed as 6.3 mills on market value in each year until 
        and unless the district has received an additional loan; 
           (d) in any district for which a capital loan was approved 
        prior to August 1, 1981, a levy in a total dollar amount equal 
        to the sum of the amount of the required debt service levy and 
        an amount which when levied annually will in the opinion of the 
        commissioner be sufficient to retire the remaining interest and 
        principal on any outstanding loans from the state within 30 
        years of the original date when the capital loan was granted.  
           The board in any district affected by the provisions of 
        clause (2)(d) may elect instead to determine the amount of its 
        levy according to the provisions of clause (1).  If a district's 
        capital loan is not paid within 30 years because it elects to 
        determine the amount of its levy according to the provisions of 
        clause (2)(d), the liability of the district for the amount of 
        the difference between the amount it levied under clause (2)(d) 
        and the amount it would have levied under clause (1), and for 
        interest on the amount of that difference, must not be satisfied 
        and discharged pursuant to Minnesota Statutes 1988, or an 
        earlier edition of Minnesota Statutes if applicable, section 
        124.43, subdivision 4. 
           Sec. 16.  Minnesota Statutes 1998, section 126C.69, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 
        1, 1992 1999, 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 24 percent of adjusted net tax capacity.  The 
        estimate must assume a 20-year maturity schedule for new debt. 
           Sec. 17.  Minnesota Statutes 1998, section 126C.69, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
        recommended for approval for a district exceeding an amount 
        computed as follows: 
           (1) the amount requested by the district under subdivision 
        6; 
           (2) plus the aggregate principal amount of general 
        obligation bonds of the district outstanding on June 30 of the 
        year following the year the application was received, not 
        exceeding the limitation on net debt of the district in section 
        475.53, subdivision 4, or 305 363 percent of its adjusted net 
        tax capacity as most recently determined, whichever is less; 
           (3) less the maximum net debt permissible for the district 
        on December 1 of the year the application is received, under the 
        limitation in section 475.53, subdivision 4, or 305 363 percent 
        of its adjusted net tax capacity as most recently determined, 
        whichever is less; 
           (4) less any amount by which the amount voted exceeds the 
        total cost of the facilities for which the loan is granted.  
           (b) The loan may be approved in an amount computed as 
        provided in paragraph (a), clauses (1) to (3), subject to later 
        reduction according to paragraph (a), clause (4). 
           Sec. 18.  Laws 1995, First Special Session chapter 3, 
        article 12, section 7, as amended by Laws 1997, First Special 
        Session chapter 4, article 9, section 2, Laws 1998, chapter 270, 
        section 4, and Laws 1998, chapter 359, section 20, is amended to 
        read: 
           Sec. 7.  [MINNESOTA EDUCATION TELECOMMUNICATIONS COUNCIL.] 
           Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
        of the Minnesota education telecommunications council 
        established in Laws 1993, First Special Session chapter 2, is 
        expanded to include representatives of elementary and secondary 
        education.  The membership shall consist of three 
        representatives from the University of Minnesota; three 
        representatives of the board of trustees for Minnesota state 
        colleges and universities; one representative of the higher 
        education services offices; one representative appointed by the 
        private college council; one representative selected by the 
        commissioner of administration; eight representatives selected 
        by the commissioner of children, families, and learning, at 
        least one of which must come from each of the six higher 
        education telecommunication regions; a representative from the 
        office of technology; two members each from the senate and the 
        house of representatives selected by the subcommittee on 
        committees of the committee on rules and administration of the 
        senate and the speaker of the house, one member from each body 
        must be a member of the minority party; and three 
        representatives of libraries, one representing regional public 
        libraries, one representing multitype libraries, and one 
        representing community libraries, selected by the governor.  The 
        council shall: 
           (1) develop a statewide vision and plans for the use of 
        distance learning technologies and provide leadership in 
        implementing the use of such technologies; 
           (2) recommend to the commissioner and the legislature by 
        December 15, 1996, a plan for long-term governance and a 
        proposed structure for statewide and regional 
        telecommunications; 
           (3) recommend educational policy relating to 
        telecommunications; 
           (4) (3) determine priorities for use; 
           (5) (4) oversee coordination of networks for post-secondary 
        campuses, K-12 kindergarten through grade 12 education, and 
        regional and community libraries; 
           (6) (5) review application for telecommunications access 
        grants under Minnesota Statutes, section 124C.74 125B.20, and 
        recommend to the department grants for funding; 
           (7) (6) determine priorities for grant funding proposals; 
        and 
           (8) (7) work with the information policy office to ensure 
        consistency of the operation of the learning network with 
        standards of an open system architecture. 
           The council shall consult with representatives of the 
        telecommunication industry in implementing this section.  
           Subd. 2.  [DISTRICT COUNCIL MEMBERSHIP.] District 
        organizations that coordinate applications for telecommunication 
        access grants are encouraged to become members of the regional 
        higher education telecommunication council in their area. 
           Subd. 3.  [CRITERIA.] In addition to responsibilities of 
        the council under Laws 1993, First Special Session chapter 2, as 
        amended, the telecommunications council shall evaluate grant 
        applications under Minnesota Statutes, section 124C.74 and 
        applications from district organizations using the following 
        criteria: 
           (1) evidence of cooperative arrangements with other 
        post-secondary institutions, school districts, and community and 
        regional libraries in the geographic region; 
           (2) plans for shared classes and programs; 
           (3) avoidance of network duplication; 
           (4) evidence of efficiencies to be achieved in delivery of 
        instruction due to use of telecommunications; 
           (5) a plan for development of a list of all courses 
        available in the region for delivery at a distance; 
           (6) a plan for coordinating and scheduling courses; and 
           (7) a plan for evaluation of costs, access, and outcomes. 
           Sec. 19.  Laws 1997, First Special Session chapter 4, 
        article 9, section 13, is amended to read: 
           Sec. 13.  [REPEALER.] 
           (a) Minnesota Statutes 1996, section 124C.74, is repealed 
        effective July 1, 1999 2001.  
           (b) Minnesota Statutes 1996, section 134.46, is repealed. 
           Sec. 20.  Laws 1998, chapter 404, section 5, subdivision 5, 
        is amended to read: 
        Subd. 5.  Metropolitan Magnet Schools                22,200,000 
        For awarding metropolitan magnet school 
        grants to groups of qualified 
        metropolitan school districts under 
        Minnesota Statutes, section 124C.498.  
        $1,900,000 is for the completion of the 
        Downtown Integration magnet school in 
        Minneapolis. 
        $3,800,000 is for planning, design, 
        acquisition of land, architectural 
        fees, and engineering fees for the East 
        Metropolitan Integration magnet school 
        in the East Metropolitan area.  Of that 
        amount, $2,800,000 is for land 
        acquisition and site development.  
        $14,500,000 is for the construction of 
        the Metropolitan Integration magnet 
        school in Robbinsdale. 
        $2,000,000 is for the Southwest 
        Metropolitan Integration magnet school 
        in Edina. 
           Sec. 21.  [REORGANIZATION DEBT; HOWARD 
        LAKE-WAVERLY-WINSTED.] 
           Notwithstanding Laws 1994, chapter 647, article 6, section 
        38, or any other law to the contrary, the unreserved operating 
        fund balance used to compute the reorganization operating debt 
        levy authority for independent school district No. 2687, Howard 
        Lake-Waverly-Winsted, is June 30, 1995. 
           Sec. 22.  [FISCAL YEARS 2000 TO 2003 DECLINING PUPIL UNIT 
        AID; ST. PETER.] 
           Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
        only, independent school district No. 508, St. Peter, is 
        eligible for declining pupil unit aid equal to the product of 
        the general education formula allowance for fiscal year 2000 
        times the difference between the district's adjusted marginal 
        cost pupil units for the 1996-1997 school year and the 
        district's adjusted marginal cost pupil units for the 1999-2000 
        school year. 
           Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
        independent school district No. 508, St. Peter, is eligible for 
        declining pupil unit aid equal to the product of the general 
        education formula allowance for fiscal year 2001 times 75 
        percent of the difference between the district's adjusted 
        marginal cost pupil units for the 1996-1997 school year and the 
        district's adjusted marginal cost pupil units for the 2000-2001 
        school year. 
           Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
        independent school district No. 508, St. Peter, is eligible for 
        declining pupil unit aid equal to the product of the general 
        education formula allowance for fiscal year 2002 times 50 
        percent of the difference between the district's adjusted 
        marginal cost pupil units for the 1996-1997 school year and the 
        district's adjusted marginal cost pupil units for the 2001-2002 
        school year. 
           Subd. 4.  [FISCAL YEAR 2003.] For fiscal year 2003 only, 
        independent school district No. 508, St. Peter, is eligible for 
        declining pupil unit aid equal to the product of the general 
        education formula allowance for fiscal year 2003 times 25 
        percent of the difference between the district's adjusted 
        marginal cost pupil units for the 1996-1997 school year and the 
        district's adjusted marginal cost pupil units for the 2002-2003 
        school year. 
           Sec. 23.  [FISCAL YEARS 2000 to 2002 DECLINING PUPIL UNIT 
        AID; CLIMAX, KITTSON CENTRAL, ADA-BORUP, WARREN-ALVARADO-OSLO, 
        BRECKENRIDGE, EAST GRAND FORKS, AND STEPHEN-ARGYLE CENTRAL.] 
           Subdivision 1.  [FISCAL YEAR 2000.] For fiscal year 2000 
        only, independent school district Nos. 592, Climax; 2171, 
        Kittson Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 
        846, Breckenridge; 595, East Grand Forks; and 2856, 
        Stephen-Argyle Central are eligible for declining pupil unit aid 
        equal to the product of the general education formula allowance 
        for fiscal year 2000 times 75 percent of the difference between 
        the districts' adjusted marginal cost pupil units for the 
        1996-1997 school year and the districts' adjusted marginal cost 
        pupil units for the 1999-2000 school year. 
           Subd. 2.  [FISCAL YEAR 2001.] For fiscal year 2001 only, 
        independent school district Nos. 592, Climax; 2171, Kittson 
        Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
        Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
        Central are eligible for declining pupil unit aid equal to the 
        product of the general education formula allowance for fiscal 
        year 2001 times 50 percent of the difference between the 
        districts' adjusted marginal cost pupil units for the 1996-1997 
        school year and the districts' adjusted marginal cost pupil 
        units for the 2000-2001 school year. 
           Subd. 3.  [FISCAL YEAR 2002.] For fiscal year 2002 only, 
        independent school district Nos. 592, Climax; 2171, Kittson 
        Central; 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, 
        Breckenridge; 595, East Grand Forks; and 2856, Stephen-Argyle 
        Central are eligible for declining pupil unit aid equal to the 
        product of the general education formula allowance for fiscal 
        year 2002 times 25 percent of the difference between the 
        districts' adjusted marginal cost pupil units for the 1996-1997 
        school year and the districts' adjusted marginal cost pupil 
        units for the 2001-2002 school year. 
           Sec. 24.  [HEALTH AND SAFETY; PROCTOR.] 
           Notwithstanding any law to the contrary, independent school 
        district No. 704, Proctor, may include in its health and safety 
        program the amounts necessary to make health and safety 
        improvements to an ice arena located within the district 
        boundaries in order for the district to use the facility to meet 
        the district's curriculum needs under the state graduation 
        rule.  The district must attempt to renegotiate its lease 
        agreement with the county that operates the arena before it is 
        eligible for health and safety revenue under this section.  The 
        total amount of revenue approved for this purpose shall not 
        exceed $150,000. 
           Sec. 25.  [ALTERNATIVE FACILITIES REVENUE PROGRAM.] 
           Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 622, NORTH 
        ST. PAUL-MAPLEWOOD-OAKDALE.] Independent school district No. 
        622, North St. Paul-Maplewood-Oakdale, is eligible for the 
        alternative facilities revenue program under Minnesota Statutes, 
        section 123B.59, for the purposes of financing school facilities 
        in the district. 
           Subd. 2.  [STILLWATER.] Independent school district No. 
        834, Stillwater, is eligible for the alternative facilities 
        revenue program under Minnesota Statutes, section 123B.59, for 
        the purposes of financing school facilities in the district. 
           Sec. 26.  [RESIDENTIAL ACADEMIES.] 
           (a) If a recipient has been awarded a grant under Laws 
        1998, chapter 398, article 5, section 46, and fails to meet the 
        requirements under the application process for implementing the 
        program after June 30, 1999, any grant money awarded but not 
        paid shall not cancel but is appropriated to the commissioner 
        for additional capital grants to new or existing grantees.  The 
        commissioner may reopen the application process with any funds 
        made available. 
           (b) All projects awarded grants must submit updated capital 
        and operating budget plans to the department of children, 
        families, and learning by June 11, 1999.  The commissioner shall 
        approve all educationally and economically advisable plans by 
        June 15, 1999.  Only projects with approved updated plans shall 
        be eligible to receive funds.  If any project is found 
        ineligible to receive funds, the commissioner may reallocate the 
        funds formerly allocated to that project to the remaining 
        eligible projects. 
           Sec. 27.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
        aid according to Minnesota Statutes, section 123B.57, 
        subdivision 5: 
             $14,528,000    .....     2000 
             $14,957,000    .....     2001 
           The 2000 appropriation includes $1,415,000 for 1999 and 
        $13,113,000 for 2000.  
           The 2001 appropriation includes $1,456,000 for 2000 and 
        $13,501,000 for 2001.  
           Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
        according to Minnesota Statutes, section 123B.53, subdivision 6: 
             $33,165,000    .....     2000
             $32,084,000    .....     2001
           The 2000 appropriation includes $3,842,000 for 1999 and 
        $29,323,000 for 2000. 
           The 2001 appropriation includes $3,256,000 for 2000 and 
        $28,828,000 for 2001. 
           Subd. 4.  [INTERACTIVE TELEVISION (ITV) AID.] For 
        interactive television (ITV) aid under Minnesota Statutes, 
        section 126C.40, subdivision 4: 
             $4,197,000     .....     2000
             $2,851,000     .....     2001
           The 2000 appropriation includes $405,000 for 1999 and 
        $3,792,000 for 2000. 
           The 2001 appropriation includes $421,000 for 2000 and 
        $2,430,000 for 2001. 
           Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
        alternative facilities bonding aid, according to Minnesota 
        Statutes, section 123B.59: 
             $19,058,000    .....     2000 
             $19,286,000    .....     2001 
           The 2000 appropriation includes $1,700,000 for 2000 and 
        $17,358,000 for 2001. 
           The 2001 appropriation includes $1,928,000 for 2000 and 
        $17,358,000 for 2001. 
           Subd. 6.  [URBAN LEAGUE STREET ACADEMY.] For a grant to 
        special school district No. 1, Minneapolis, for the urban league 
        street academy for the costs of acquiring and moving to a larger 
        building to expand the academy's program: 
             $750,000       .....     2000 
           This appropriation is available until June 30, 2001. 
           Subd. 7.  [TELECOMMUNICATION ACCESS GRANTS.] (a) For 
        telecommunication access grants according to Minnesota Statutes, 
        section 125B.20: 
             $5,000,000     .....     2000 
           (b) Any balance in the first year does not cancel but is 
        available in the second year.  This amount shall not be included 
        as part of the base for fiscal year 2002-2003. 
           Subd. 8.  [DISASTER RELIEF FACILITIES GRANT; ST. 
        PETER.] For a disaster relief facilities grant to independent 
        school district No. 508, St. Peter: 
             $250,000       .....     2000 
           This grant is for facilities replacement costs not covered 
        by the district's insurance settlement or through federal 
        emergency management agency payments.  
           This appropriation is available until June 30, 2001. 
           Subd. 9.  [DISASTER RELIEF FACILITIES GRANT; COMFREY.] For 
        a disaster relief facilities grant to independent school 
        district No. 81, Comfrey: 
             $450,000       .....     2000 
           This appropriation is available until June 30, 2001. 
           This grant is for facilities replacement costs not covered 
        by the district's insurance settlement or through federal 
        emergency management agency payments. 
           Subd. 10.  [DECLINING PUPIL AID; ST. PETER.] For a grant to 
        independent school district No. 508, St. Peter, to ameliorate 
        general fund operating losses associated with the March, 1998 
        tornado: 
             $  105,000     .....     2000 
             $  278,000     .....     2001 
           Subd. 11.  [FLOODS; DECLINING PUPIL AID.] For declining 
        pupil aid under section 23: 
             $2,132,000     .....     2000 
             $1,758,000     .....     2001 
           Sec. 28.  [REVISOR INSTRUCTION.] 
           In the next and subsequent editions of Minnesota Statutes, 
        the revisor shall codify section 18 as Minnesota Statutes, 
        section 125B.21. 
           Sec. 29.  [REPEALER.] 
           (a) Minnesota Statutes 1998, sections 123A.44; 123A.441; 
        123A.442; 123A.443; 123A.444; 123A.445; 123A.446; 123B.57, 
        subdivisions 4, 5, and 7; 123B.59, subdivision 7; 123B.63, 
        subdivisions 1 and 2; 123B.66; 123B.67; 123B.68; and 123B.69, 
        are repealed effective the day following final enactment. 
           (b) Minnesota Statutes 1998, section 123B.58, is repealed 
        effective July 1, 2004. 
           (c) Minnesota Statutes 1998, section 123B.64, subdivision 
        4, is repealed effective for revenue for fiscal year 2000. 
           (d) Minnesota Statutes 1998, section 123B.64, subdivisions 
        1, 2, and 3, are repealed effective for revenue for fiscal year 
        2001. 
           (e) Minnesota Rules, parts 3500.3900; 3500.4000; 3500.4100; 
        3500.4200; and 3500.4300, are repealed. 
           Sec. 30.  [EFFECTIVE DATES.] 
           Sections 2, 7, 12, 14, 15, 16, and 17 are effective for 
        revenue for fiscal year 2000 and later.  Sections 9, 10, 13, 18, 
        19, 20, and 26 are effective the day following final enactment.  
        Section 21 is effective retroactive to July 1, 1996. 
                                   ARTICLE 5 
                              EDUCATION EXCELLENCE 
           Section 1.  Minnesota Statutes 1998, section 41D.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELEMENTARY AND SECONDARY AGRICULTURAL 
        EDUCATION.] The council may provide grants for: 
           (1) planning and establishment costs for elementary and 
        secondary agriculture education programs; 
           (2) new instructional and communication technologies; and 
           (3) curriculum updates. 
           Sec. 2.  Minnesota Statutes 1998, section 122A.18, is 
        amended by adding a subdivision to read: 
           Subd. 7a.  [PERMISSION TO SUBSTITUTE TEACH.] The board of 
        teaching may allow a person who is enrolled in and making 
        satisfactory progress in a board-approved teacher program and 
        who has successfully completed student teaching to be employed 
        as a short-call substitute teacher.  
           Sec. 3.  Minnesota Statutes 1998, section 122A.60, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STAFF DEVELOPMENT OUTCOMES.] The advisory staff 
        development committee must adopt a staff development plan for 
        improving student achievement of education outcomes.  The plan 
        must be consistent with education outcomes that the school board 
        determines.  The plan must include ongoing staff development 
        activities that contribute toward continuous improvement in 
        achievement of the following goals: 
           (1) improve student achievement of state and local 
        education standards in all areas of the curriculum by using best 
        practices methods; 
           (2) effectively meet the needs of a diverse student 
        population, including at-risk children, children with 
        disabilities, and gifted children, within the regular classroom 
        and other settings; 
           (3) provide an inclusive curriculum for a racially, 
        ethnically, and culturally diverse student population that is 
        consistent with the state education diversity rule and the 
        district's education diversity plan; 
           (4) improve staff ability to collaborate and consult with 
        one another and to resolve conflicts collaboration and develop 
        mentoring and peer coaching programs for teachers new to the 
        school or district; 
           (5) effectively teach and model violence prevention policy 
        and curriculum that address early intervention alternatives, 
        issues of harassment, and teach nonviolent alternatives for 
        conflict resolution; and 
           (6) provide teachers and other members of site-based 
        management teams with appropriate management and financial 
        management skills. 
           Sec. 4.  Minnesota Statutes 1998, section 122A.61, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
        required to reserve an amount equal to at least one percent of 
        the basic revenue under section 126C.10, subdivision 2, for 
        in-service education for programs under section 120B.22, 
        subdivision 2, for staff development plans, including plans for 
        challenging instructional activities and experiences under 
        section 122A.60, and for curriculum development and programs, 
        other in-service education, teachers' workshops, teacher 
        conferences, the cost of substitute teachers staff development 
        purposes, and other related costs for staff development 
        efforts.  A district may annually waive the requirement to 
        reserve their basic revenue under this section if a majority 
        vote of the licensed teachers in the district and a majority 
        vote of the school board agree to a resolution to waive the 
        requirement.  A district in statutory operating debt is exempt 
        from reserving basic revenue according to this section.  
        Districts may expend an additional amount of basic unreserved 
        revenue for staff development based on their needs.  With the 
        exception of amounts reserved for staff development from 
        revenues allocated directly to school sites, the board must 
        initially allocate 50 percent of the reserved revenue to each 
        school site in the district on a per teacher basis, which must 
        be retained by the school site until used.  The board may retain 
        25 percent to be used for district wide staff development 
        efforts.  The remaining 25 percent of the revenue must be used 
        to make grants to school sites that demonstrate exemplary use of 
        allocated staff development revenue for best practices methods.  
        A grant may be used for any purpose authorized under section 
        120B.22, subdivision 2, 122A.60, or for the costs of curriculum 
        development and programs, other in-service education, teachers' 
        workshops, teacher conferences, substitute teachers for staff 
        development purposes, and other staff development efforts, and 
        determined by the site decision-making professional development 
        team.  The site decision-making professional development 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. 
           Sec. 5.  Minnesota Statutes 1998, section 123B.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 
        purposes of this subdivision, "home school" means a home school 
        as defined in sections 120A.22 and 120A.24 with five or fewer 
        students receiving instruction.  
           (b) A school board is authorized to require payment of fees 
        in the following areas: 
           (1) 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; 
           (2) admission fees or charges for extra curricular 
        activities, where attendance is optional and where the admission 
        fees or charges a student must pay to attend or participate in 
        an extracurricular activity is the same for all students, 
        regardless of whether the student is enrolled in a public or a 
        home school; 
           (3) a security deposit for the return of materials, 
        supplies, or equipment; 
           (4) 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 board; 
           (5) items of personal use or products that a student has an 
        option to purchase such as student publications, class rings, 
        annuals, and graduation announcements; 
           (6) fees specifically permitted by any other statute, 
        including but not limited to section 171.05, subdivision 2; 
        provided (i) driver education fees do not exceed the actual cost 
        to the school and school district of providing driver education, 
        and (ii) the driver education courses are open to enrollment to 
        persons between the ages of 15 and 18 who reside or attend 
        school in the school district; 
           (7) field trips considered supplementary to a district 
        educational program; 
           (8) any authorized voluntary student health and accident 
        benefit plan; 
           (9) 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; 
           (10) transportation of pupils to and from extra curricular 
        activities conducted at locations other than school, where 
        attendance is optional; 
           (11) transportation of pupils to and from school for which 
        aid for fiscal year 1996 is not authorized under Minnesota 
        Statutes 1994, section 124.223, subdivision 1, and for which 
        levy for fiscal year 1996 is not authorized under Minnesota 
        Statutes 1994, section 124.226, subdivision 5, if a district 
        charging fees for transportation of pupils establishes 
        guidelines for that transportation to ensure that no pupil is 
        denied transportation solely because of inability to pay; 
           (12) motorcycle classroom education courses conducted 
        outside of regular school hours; provided the charge must not 
        exceed the actual cost of these courses to the school district; 
           (13) transportation to and from post-secondary institutions 
        for pupils enrolled under the post-secondary enrollment options 
        program under section 123B.88, subdivision 22.  Fees collected 
        for this service must be reasonable and must be used to reduce 
        the cost of operating the route.  Families who qualify for 
        mileage reimbursement under section 124D.09, subdivision 22, may 
        use their state mileage reimbursement to pay this fee.  If no 
        fee is charged, districts must allocate costs based on the 
        number of pupils riding the route. 
           Sec. 6.  Minnesota Statutes 1998, section 123B.49, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
        (a) The board may take charge of and control all extracurricular 
        activities of the teachers and children of the public schools in 
        the district.  Extracurricular activities means all direct and 
        personal services for public school pupils for their enjoyment 
        that are managed and operated under the guidance of an adult or 
        staff member.  The board shall allow all resident pupils 
        receiving instruction in a home school as defined in section 
        123B.36, subdivision 1, paragraph (a), to be eligible to fully 
        participate in extracurricular activities on the same basis as 
        public school students. 
           (b) Extracurricular activities have all of the following 
        characteristics: 
           (1) they are not offered for school credit nor required for 
        graduation; 
           (2) they are generally conducted outside school hours, or 
        if partly during school hours, at times agreed by the 
        participants, and approved by school authorities; 
           (3) the content of the activities is determined primarily 
        by the pupil participants under the guidance of a staff member 
        or other adult. 
           (c) If the board does not take charge of and control 
        extracurricular activities, these activities shall be 
        self-sustaining with all expenses, except direct salary costs 
        and indirect costs of the use of school facilities, met by dues, 
        admissions, or other student fundraising events.  The general 
        fund must reflect only those salaries directly related to and 
        readily identified with the activity and paid by public funds.  
        Other revenues and expenditures for extra curricular activities 
        must be recorded according to the "Manual of Instruction for 
        Uniform Student Activities Accounting for Minnesota School 
        Districts and Area Vocational-Technical Colleges."  
        Extracurricular activities not under board control must have an 
        annual financial audit and must also be audited annually for 
        compliance with this section. 
           (d) If the board takes charge of and controls 
        extracurricular activities, any or all costs of these activities 
        may be provided from school revenues and all revenues and 
        expenditures for these activities shall be recorded in the same 
        manner as other revenues and expenditures of the district.  
           (e) If the board takes charge of and controls 
        extracurricular activities, the teachers or pupils in the 
        district must not participate in such activity, nor shall the 
        school name or any allied name be used in connection therewith, 
        except by consent and direction of the board. 
           Sec. 7.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SPONSOR.] A school board, intermediate school 
        district school board, education districts organized under 
        sections 123A.15 to 123A.19, private college, community college, 
        state university, technical college, or the University of 
        Minnesota may sponsor one or more charter schools. 
           Sec. 8.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
        authorize one or more licensed teachers under section 122A.18, 
        subdivision 1, to operate a charter school subject to approval 
        by the state board.  A board must vote on charter school 
        application for sponsorship no later than 90 days after 
        receiving the application.  After 90 days, the applicant may 
        apply to the state board.  If a board elects not to sponsor a 
        charter school, the applicant may appeal the board's decision to 
        the state board if two members of the board voted to sponsor the 
        school.  If the state board authorizes the school, the state 
        board must sponsor the school according to this section.  The 
        school must be organized and operated as a cooperative under 
        chapter 308A or nonprofit corporation under chapter 317A.  
           (b) Before the operators may form and operate a school, the 
        sponsor must file an affidavit with the state board stating its 
        intent to authorize a charter school.  The affidavit must state 
        the terms and conditions under which the sponsor would authorize 
        a charter school.  The state board must approve or disapprove 
        the sponsor's proposed authorization within 60 days of receipt 
        of the affidavit.  Failure to obtain state board approval 
        precludes a sponsor from authorizing the charter school that was 
        the subject of the affidavit.  
           (c) The operators authorized to organize and operate a 
        school must hold an election for members of the school's board 
        of directors in a timely manner after the school is operating.  
        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, unless the state board waives the 
        requirement for the school.  A provisional board may operate 
        before the election of the school's board of directors.  Board 
        of director meetings must comply with section 471.705. 
           (d) The granting or renewal of a charter by a sponsoring 
        entity must not be conditioned upon the bargaining unit status 
        of the employees of the school.  
           Sec. 9.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CONVERSION OF EXISTING SCHOOLS.] A board may 
        convert one or more of its existing schools to charter schools 
        under this section if 90 60 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. 10.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONTRACT.] The sponsor's authorization for a 
        charter school must be in the form of a written contract signed 
        by the sponsor and the board of directors of the charter 
        school.  The contract must be completed within 90 days of the 
        state board approval of the sponsor's proposed authorization.  
        The contract for a charter school must 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, 16, 
        and 23; 
           (7) assumption of liability by the charter school; 
           (8) types and amounts of insurance coverage to be obtained 
        by the charter school; 
           (9) the term of the contract, which may be up to three 
        years; and 
           (10) if the board of directors or the operators of the 
        charter school provide special instruction and services for 
        children with a disability under sections 125A.03 to 125A.24, 
        and 125A.65, a description of the financial parameters within 
        which the charter school will operate to provide the special 
        instruction and services to children with a disability. 
           Sec. 11.  Minnesota Statutes 1998, section 124D.10, 
        subdivision 11, is amended to read: 
           Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
        charter school must employ or contract with necessary teachers, 
        as defined by section 122A.15, subdivision 1, who hold valid 
        licenses to perform the particular service for which they are 
        employed in the school.  The 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 school may discharge teachers and nonlicensed 
        employees.  A person, without holding a valid administrator's 
        license, may perform administrative, supervisory, or 
        instructional leadership duties. 
           The board of directors also shall decide matters related to 
        the operation of the school, including budgeting, curriculum and 
        operating procedures.  
           Sec. 12.  Minnesota Statutes 1998, section 124D.11, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BUILDING LEASE AID.] When a charter school finds 
        it economically advantageous to rent or lease a building or land 
        for any instructional purposes and it determines that the total 
        operating capital revenue under section 126C.10, subdivision 13, 
        is insufficient for this purpose, it may apply to the 
        commissioner for building lease aid for this purpose.  Criteria 
        for aid approval and revenue uses shall be as defined for the 
        building lease levy in section 126C.40, subdivision 1, 
        paragraphs (a) and (b).  The amount of building lease aid per 
        pupil unit served for a charter school for any year shall not 
        exceed the lesser of (a) 80 90 percent of the approved cost or 
        (b) the product of the pupil units served for the current school 
        year times the sum of the state average debt redemption fund 
        revenue plus capital revenue, according to section 126C.40, per 
        pupil unit served for the current fiscal year $1,500. 
           Sec. 13.  Minnesota Statutes 1998, section 124D.11, 
        subdivision 6, is amended to read: 
           Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
        school is eligible to receive other aids, grants, and revenue 
        according to chapters 120A to 129C, as though it were a district.
        except that, notwithstanding section 127A.45, subdivision 3, the 
        payments must be of an equal amount on each of the 23 payment 
        dates unless a charter school is in its first year of operation 
        in which case it shall receive on its first payment date ten 
        percent of its cumulative amount guaranteed for the year and 22 
        payments of an equal amount thereafter the sum of which shall be 
        90 percent of the cumulative amount guaranteed.  However, it 
           (b) Notwithstanding paragraph (a), a charter school may not 
        receive aid, a grant, or revenue if a levy is required to obtain 
        the money, except as otherwise provided in this section.  
           (c) 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) (d) A charter school may receive money from any source 
        for capital facilities needs.  In the year-end report to the 
        state board of education, the charter school shall report the 
        total amount of funds received from grants and other outside 
        sources. 
           (e) Notwithstanding paragraph (a) or (b), a charter school 
        is eligible to receive the aid portion of integration revenue 
        under section 124D.86, subdivision 3, for enrolled students who 
        are residents of a district that is eligible for integration 
        revenue if the enrollment of the pupil in the charter school 
        contributes to desegregation or integration purposes.  If the 
        charter school has elected not to provide transportation under 
        section 124D.10, subdivision 16, the aid shall be reduced by the 
        amount per pupil unit specified for the district where the 
        charter school is located under section 123B.92, subdivision 8. 
           Sec. 14.  Minnesota Statutes 1998, section 124D.11, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 
        Notwithstanding section 127A.45, subdivision 3, aid payments for 
        the current fiscal year to a charter school not in its first 
        year of operation shall be of an equal amount on each of the 23 
        payment dates.  A charter school in its first year of operation 
        shall receive, on its first payment date, ten percent of its 
        cumulative amount guaranteed for the year and 22 payments of an 
        equal amount thereafter the sum of which shall be 90 percent of 
        the cumulative amount guaranteed. 
           (b) Notwithstanding section 127A.45, subdivision 3, and 
        paragraph (a), 90 percent of the start-up cost aid under 
        subdivision 8 shall be paid within 45 days after the first day 
        of student attendance for that school year. 
           Sec. 15.  Minnesota Statutes 1998, section 125B.05, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SOFTWARE DEVELOPMENT.] The commissioner may 
        charge school districts or cooperative units for the actual cost 
        of software development used by the district or cooperative 
        unit.  Any amount received is annually appropriated to the 
        department of children, families, and learning for this 
        purpose.  A school district, charter school, or cooperative unit 
        may not implement a payroll financial, student, or staff 
        software system after June 30, 1994, until the system has been 
        reviewed by the department to ensure that it provides the 
        required data elements and format. 
           Sec. 16.  Laws 1997, First Special Session chapter 4, 
        article 9, section 6, is amended to read:  
           Sec. 6.  [LEARNING ACADEMY.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
        develop standards and requirements and certify courses for a 
        Minnesota learning academy to provide training opportunities for 
        educators, administrators, school media and information 
        technology professionals, and librarians in the use of 
        technology and its integration into learning activities for 
        meeting the educational needs of all students.  Only certified 
        classes may be used to fulfill the requirements of the learning 
        academy. 
           Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
        the learning academy, the commissioner shall consult with 
        representatives of public schools, higher education, teacher 
        organizations, students, private business, state agencies, 
        libraries, and political subdivisions to do the following: 
           (1) set measures for teacher training opportunities on 
        technical skills and technology integration skills; 
           (2) identify and establish outcomes for a series of 
        training courses that provide for technical skills and 
        technology classroom integration skills, including skills to 
        enable school media and information specialists to train school 
        staff; 
           (3) identify existing education organizations, public, or 
        private institutions to develop and provide training courses; 
           (4) evaluate prerequisites for the classroom integration 
        skills course; 
           (5) certify or decertify classes and courses for inclusion 
        in or exclusion from the learning academy; and 
           (6) coordinate and make certified classes and courses 
        available to eligible participants. 
           Subd. 3.  [FUNDING.] The commissioner shall use available 
        appropriations to provide start-up and initial operating 
        subsidies for the learning academy sites.  Appropriated funds 
        may also be used to partially subsidize costs of attendees of 
        the academy. 
           Sec. 17.  [SALARY CREDIT FOR PRIOR EXPERIENCE AND 
        TRAINING.] 
           For purposes of determining the placement on the salary 
        schedule of a program graduate of the collaborative urban 
        educator, southeast Asian teacher licensure, or circles of 
        support in educational leadership program, a school district 
        that employs a program graduate may give additional credit on 
        the salary schedule for that person's teaching experience and 
        academic preparation attained while participating in the 
        program, and also may consider the person's employment 
        experience and academic preparation attained before enrolling in 
        any of these three programs. 
           Sec. 18.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
        grant to independent school district No. 625, St. Paul, for the 
        operation of a community-based school program.  The school 
        district must report to the legislature on the academic and 
        social results of this program by January 15, 2000. 
             $3,000,000     .....     2000 
           Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation. 
           Subd. 3.  [ADVANCED PLACEMENT AND INTERNATIONAL 
        BACCALAUREATE PROGRAMS.] For the state advanced placement and 
        international baccalaureate programs: 
             $1,875,000     .....     2000 
             $1,875,000     .....     2001 
           Notwithstanding Minnesota Statutes, section 120B.13, 
        subdivisions 1 and 2, $375,000 each year is for teachers to 
        attend subject matter summer training programs and follow-up 
        support workshops approved by the advanced placement or 
        international baccalaureate programs.  The amount of the subsidy 
        for each teacher attending an advanced placement or 
        international baccalaureate summer training program or workshop 
        shall be the same.  The commissioner shall determine the payment 
        process and the amount of the subsidy. 
           Notwithstanding Minnesota Statutes, section 120B.13, 
        subdivision 3, in each year to the extent of available 
        appropriations, the commissioner shall pay all examination fees 
        for all students sitting for an advanced placement examination, 
        international baccalaureate examination, or both.  If this 
        amount is not adequate, the commissioner may pay less than the 
        full examination fee. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [STATEWIDE TESTING.] For supporting 
        implementation of the graduation standards: 
             $9,000,000    .....     2000 
             $9,000,000    .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
        lease aid according to Minnesota Statutes, section 124D.11, 
        subdivision 4: 
             $2,992,000      .....     2000 
             $3,616,000      .....     2001 
           The 2000 appropriation includes $194,000 for 1999 and 
        $2,798,000 for 2000. 
           The 2001 appropriation includes $311,000 for 2000 and 
        $3,305,000 for 2001.  
           Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
        school start-up cost aid under Minnesota Statutes, section 
        124D.11: 
             $1,789,000    .....     2000 
             $1,876,000    .....     2001 
           The 2000 appropriation includes $100,000 for 1999 and 
        $1,689,000 for 2000.  
           The 2001 appropriation includes $188,000 for 1999 and 
        $1,688,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year.  This appropriation may also be 
        used for grants to convert existing schools into charter schools.
           Subd. 7.  [GRADUATION RULE RESOURCE GRANTS.] For graduation 
        rule resource grants according to Laws 1998, chapter 398, 
        article 5, section 40: 
             $  600,000     .....     2000 
           This appropriation is available until June 30, 2001. 
           Of this amount, $500,000 is for a current recipient of 
        funding from the National Geographic Society Education 
        Foundation; and $100,000 is for a program offering horse riding 
        as an alternative educational program for children with a 
        disability. 
           Subd. 8.  [CHARTER SCHOOL INTEGRATION AID.] For new 
        integration aid to go to charter schools according to Minnesota 
        Statutes, section 124D.11, subdivision 6, paragraph (e): 
             $50,000        .....     2000 
             $50,000        .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 9.  [HOMEWORK HOTLINE.] For grants for homework 
        hotline providers: 
             $ 40,000       .....     2000 
             $ 40,000       .....     2001 
           This appropriation is available to assist students with 
        homework by telephone or other interactive technology.  The 
        program providers must offer assistance to students at least 
        four days per week.  The state aid is contingent upon the 
        program matching each $1 of state revenue with $2 of local or 
        private funding or in-kind contributions. 
           Subd. 10.  [MINNESOTA TALENTED YOUTH MATH PROJECT.] For a 
        grant to the South Central Service Cooperative for the Minnesota 
        talented youth math project program operated by the South 
        Central Service Cooperative and as fiscal agent for the talented 
        youth math project programs established and operated by the 
        Northwest Service Cooperative, Northeast Service Cooperative, 
        North Central Service Cooperative, and Southwest/West Central 
        Service Cooperative. 
             $  145,000     .....     2000 
             $  175,000     .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year.  This is a one-time appropriation.*
        (The preceding subdivision was vetoed by the governor.) 
           Subd. 11.  [PROGRAMS TRAINING TEACHERS OF SPECIAL NEEDS 
        STUDENTS.] For programs training teachers of special needs 
        students under Laws 1998, chapter 398, article 5, section 42: 
             $1,500,000     .....     2000 
           This appropriation is available until June 30, 2001. 
           Sec. 19.  [EFFECTIVE DATES.] 
           Sections 5, 6, 11, and 17 are effective for the 1999-2000 
        school year and later. 
                                   ARTICLE 6 
                                 OTHER PROGRAMS 
           Section 1.  Minnesota Statutes 1998, section 120A.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
        charge of providing instruction to a child must 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 birth 
        date, 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 120A.22, 
        subdivision 10; 
           (3) an annual instructional calendar; and 
           (4) for each child instructed by a parent who meets only 
        the requirement of section 120A.22, subdivision 10, clause (6), 
        a quarterly report card on the achievement of the child in each 
        subject area required in section 120A.22, subdivision 9. 
           Sec. 2.  Minnesota Statutes 1998, section 123A.48, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DISTRICT BOARD ADOPTION OF PROPOSED PLAT.] The 
        board of any independent district maintaining a secondary 
        school, the board of any common district maintaining a secondary 
        school, all or part of whose land is included in the proposed 
        new district, must, within 45 days of the approval of the plat 
        by the commissioner, either adopt or reject the plan as proposed 
        in the approved plat.  If the board of any such district 
        entitled to act on the petition rejects the proposal, the 
        proceedings are terminated and dismissed.  If any board fails to 
        act on the plat within the time allowed, the proceedings are 
        terminated.  If any school board is unable to obtain a majority 
        of its members' votes to accept or reject the plat and plan, a 
        petition of residents of the district unable to obtain a 
        majority of votes equal to 20 percent of the votes cast in the 
        last school district general election in that district may be 
        submitted to the county auditor requesting a public vote to 
        accept or reject the plat and plan.  The vote shall be scheduled 
        on the next available election date.  The county auditor shall 
        notify the commissioner of the scheduled vote, conduct the 
        election in that district and certify the results of the 
        election to the commissioner.  Other affected school boards that 
        approve the plat and plan may choose to hold an election.  If 
        elections are conducted in each affected school district, 
        results shall be separate and a majority vote to approve the 
        plat and plan must be reached in each of the affected 
        districts.  If the plat and plan are rejected by the voters, a 
        new plat and plan cannot be submitted, except by school board 
        resolution in a district where the plat and plan were rejected, 
        until January 1 of the year following the next school district 
        general election.  
           Sec. 3.  Minnesota Statutes 1998, section 123B.195, is 
        amended to read: 
           123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 
           Notwithstanding section 471.88, 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 122A.40 or 122A.41 or other law, 
        if the officer does not receive unanimous majority approval to 
        be initially employed or 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. 4.  Minnesota Statutes 1998, section 124D.94, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
        the foundation shall consist of the commissioner of children, 
        families, and learning, a member of the state board of education 
        selected by the state board who shall serve as chair and 20 
        members to be appointed by the governor.  Of the 20 members 
        appointed by the governor, eight shall represent a variety of 
        education groups and 12 shall represent a variety of business 
        groups.  The members of the board of directors shall select one 
        member to serve as chair.  The commissioner of children, 
        families, and learning shall serve as secretary for the board of 
        directors and provide administrative support to the foundation.  
        An executive committee of the foundation board composed of the 
        board officers and chairs of board committees, may only advise 
        and make recommendations to the foundation board.  
           Sec. 5.  Minnesota Statutes 1998, section 124D.94, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONTRACTS.] The foundation board shall review 
        and approve each contract of the board.  Each contract of the 
        foundation board shall be subject to the same review and 
        approval procedures as a contract of the state board of 
        education department of children, families, and learning. 
           Sec. 6.  Minnesota Statutes 1998, section 124D.94, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FOUNDATION STAFF.] (a) The state board 
        foundation board with review by the commissioner shall appoint 
        the executive director and other staff who shall perform duties 
        and have responsibilities solely related to the foundation.  
           (b) As part of the annual plan of work, the foundation, 
        under the direction of with review by the state 
        board commissioner, may appoint up to three employees.  The 
        employees appointed under this paragraph are not state employees 
        under chapter 43A, but are covered under section 3.736.  At the 
        foundation board's discretion, the employees may participate in 
        the state health and state insurance plans for employees in 
        unclassified service.  The employees shall be supervised by the 
        executive director. 
           Sec. 7.  Minnesota Statutes 1998, section 126C.42, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (a) In 
        each year in which so required by this subdivision, a district 
        must make an additional levy to eliminate its statutory 
        operating debt, determined as of June 30, 1977, and certified 
        and adjusted by the commissioner.  This levy shall not be made 
        in more than 30 successive years and each year before it is 
        made, it must be approved by the commissioner and the approval 
        shall specify its amount.  This levy shall be an amount which is 
        equal to the amount raised by a levy of a net tax rate of 1.66 
        1.98 percent times the adjusted net tax capacity of the district 
        for the preceding year for taxes payable in 1991 2000 and 
        thereafter; provided that in the last year in which the district 
        is required to make this levy, it must levy an amount not to 
        exceed the amount raised by a levy of a net tax rate of 1.66 
        1.98 percent times the adjusted net tax capacity of the district 
        for the preceding year for taxes payable in 1991 2000 and 
        thereafter.  When the sum of the cumulative levies made pursuant 
        to this subdivision and transfers made according to section 
        123B.79, subdivision 6, equals an amount equal to the statutory 
        operating debt of the district, the levy shall be discontinued. 
           (b) The district must establish a special account in the 
        general fund which shall be designated "appropriated fund 
        balance reserve account for purposes of reducing statutory 
        operating debt" on its books and records.  This account shall 
        reflect the levy authorized pursuant to this subdivision.  The 
        proceeds of this levy must be used only for cash flow 
        requirements and must not be used to supplement district 
        revenues or income for the purposes of increasing the district's 
        expenditures or budgets. 
           (c) Any district which is required to levy pursuant to this 
        subdivision must certify the maximum levy allowable under 
        section 126C.13, subdivision 2, in that same year. 
           (d) Each district shall make permanent fund balance 
        transfers so that the total statutory operating debt of the 
        district is reflected in the general fund as of June 30, 1977. 
           Sec. 8.  Minnesota Statutes 1998, section 126C.42, 
        subdivision 2, is amended to read: 
           Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
        may make an additional levy to eliminate a deficit in the net 
        unappropriated operating funds of the district, determined as of 
        June 30, 1983, and certified and adjusted by the commissioner.  
        This levy may in each year be an amount not to exceed the amount 
        raised by a levy of a net tax rate of 1.85 2.2 percent times the 
        adjusted net tax capacity for taxes payable in 1991 2000 and 
        thereafter of the district for the preceding year as determined 
        by the commissioner.  However, the total amount of this levy for 
        all years it is made must not exceed the lesser of (a) the 
        amount of the deficit in the net unappropriated operating funds 
        of the district as of June 30, 1983, or (b) the amount of the 
        aid reduction, according to Laws 1981, Third Special Session 
        chapter 2, article 2, section 2, but excluding clauses (l), (m), 
        (n), (o), and (p), and Laws 1982, Third Special Session chapter 
        1, article 3, section 6, to the district in fiscal year 1983.  
        When the cumulative levies made pursuant to this subdivision 
        equal the total amount permitted by this subdivision, the levy 
        must be discontinued.  
           (2) The proceeds of this levy must be used only for cash 
        flow requirements and must not be used to supplement district 
        revenues or income for the purposes of increasing the district's 
        expenditures or budgets.  
           (3) A district that levies pursuant to this subdivision 
        must certify the maximum levy allowable under section 126C.13, 
        subdivision 2, in that same year. 
           Sec. 9.  Minnesota Statutes 1998, section 126C.46, is 
        amended to read: 
           126C.46 [ABATEMENT LEVY.] 
           (a) Each year, a school district may levy an amount to 
        replace the net revenue lost to abatements that have occurred 
        under chapter 278, section 270.07, 375.192, or otherwise.  The 
        maximum abatement levy is the sum of: 
           (1) the amount of the net revenue loss determined under 
        section 127A.49, subdivision 2, that is not paid in state aid 
        including any aid amounts not paid due to proration; 
           (2) the difference of (i) the amount of any abatements that 
        have been reported by the county auditor for the first six 
        months of the calendar year during which the abatement levy is 
        certified that the district chooses to levy, (ii) less any 
        amount actually levied under this clause that was certified in 
        the previous calendar year for the first six months of the 
        previous calendar year; and 
           (3) an amount equal to any interest paid on abatement 
        refunds.  
           (b) A district may spread this levy over a period not to 
        exceed three two years.  With the approval of the commissioner, 
        a district may spread this levy over a period not to exceed 
        three years. 
           By July 15, the county auditor shall separately report the 
        abatements that have occurred during the first six calendar 
        months of that year to the commissioner and each district 
        located within the county. 
           Sec. 10.  Minnesota Statutes 1998, section 127A.45, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] (a) The term "other district 
        receipts" means payments by county treasurers pursuant to 
        section 276.10, apportionments from the school endowment fund 
        pursuant to section 127A.33, apportionments by the county 
        auditor pursuant to section 127A.34, subdivision 2, and payments 
        to school districts by the commissioner of revenue pursuant to 
        chapter 298.  
           (b) The term "cumulative amount guaranteed" means the sum 
        of the following: 
           (1) one-third of the final adjustment payment according to 
        subdivision 9; plus 
           (2) the product of 
           (i) (1) the cumulative disbursement percentage shown in 
        subdivision 3; times 
           (ii) (2) the sum of 
           (i) 90 percent of the estimated aid and credit entitlements 
        paid according to subdivision 13; plus 
           (ii) 100 percent of the entitlements paid according to 
        subdivisions 11 and 12; plus 
           (iii) the other district receipts; plus 
           (iv) the final adjustment payment according to subdivision 
        9.  
           (c) The term "payment date" means the date on which state 
        payments to districts are made by the electronic funds transfer 
        method.  If a payment date falls on a Saturday, a Sunday, or a 
        weekday which is a legal holiday, the payment shall be made on 
        the immediately following preceding business day.  The 
        commissioner may make payments on dates other than those listed 
        in subdivision 3, but only for portions of payments from any 
        preceding payment dates which could not be processed by the 
        electronic funds transfer method due to documented extenuating 
        circumstances.  
           Sec. 11.  Minnesota Statutes 1998, section 127A.45, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
        shall pay to a district on the dates indicated an amount 
        computed as follows:  the cumulative amount guaranteed minus the 
        sum of (a) the district's other district receipts through the 
        current payment, and (b) the aid and credit payments through the 
        immediately preceding payment.  For purposes of this 
        computation, the payment dates and the cumulative disbursement 
        percentages are as follows:  
                                 Payment date               Percentage 
        Payment 1    July 15:                                   2.25 4.6
        Payment 2    July 30:                                   4.50 6.9 
        Payment 3    August 15:  the greater of (a) the final        
                     adjustment for the prior fiscal year for
                     the state paid property tax credits
                     established in section 273.1392, or
                     (b) the amount needed to provide 6.75 15.2 percent
        Payment 4    August 30:                                  9.0 17.4
        Payment 5    September 15:                             12.75 19.6
        Payment 6    September 30:                             16.50 21.8
        Payment 7    October 15:  the greater of (a) one-half of
                     the final adjustment for the prior fiscal year
                     for all aid entitlements except state paid
                     property tax credits, or (b) the amount needed to
                     provide 20.75 24 percent
        Payment 8    October 30:  the greater of (a) one-half of the
                     final adjustment for the prior fiscal year for all
                     aid entitlements except state paid property
                     tax credits, or (b) the amount needed
                     to provide 25.0 27.3 percent
        Payment 9    November 15:                               31.0 33.3
        Payment 10   November 30:                               37.0 39.3
        Payment 11   December 15:                               40.0 42.3
        Payment 12   December 30:                               43.0 45.3
        Payment 13   January 15:                               47.25 49.5
        Payment 14   January 30:                                51.5 53.8
        Payment 15   February 15:                               56.0 58.3
        Payment 16   February 28:                               60.5 62.8
        Payment 17   March 15:                                 65.25 67.6
        Payment 18   March 30:                                  70.0 72.3
        Payment 19   April 15:                                  73.0 75.3
        Payment 20   April 30:                                  79.0 81.3
        Payment 21   May 15:                                    82.0 84.3
        Payment 22   May 30:                                    90.0 92.3
        Payment 23   June 20:                                  100.0
           Sec. 12.  Minnesota Statutes 1998, section 127A.45, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPEAL.] (a) The commissioner, in consultation 
        with the commissioner of finance, may revise the payment dates 
        and percentages in subdivision 3 for a district if it is 
        determined that: 
           (1) there is an emergency; or 
           (2) there are serious cash flow problems in the district 
        that cannot be resolved by issuing warrants or other forms of 
        indebtedness; or 
           (3) the district is facing a serious cash flow problem 
        because of an abatement that exceeds $100 times the resident 
        pupil units of the district.  
           (b) The commissioner shall establish a process and criteria 
        for districts to appeal the payment dates and percentages 
        established in subdivision 3.  
           Sec. 13.  [LEVY AUTHORITY; CONTINUATION.] 
           Subdivision 1.  [EXTENSION OF AUTHORITY.] The levy 
        authority granted under Laws 1992, chapter 499, article 6, 
        section 35, to the Lac qui Parle joint powers district is 
        extended to independent school district No. 2853, Lac qui Parle 
        Valley. 
           Subd. 2.  [LEVY AUTHORITY.] For taxes payable in 2000 to 
        2004, independent school district No. 2853, Lac qui Parle 
        Valley, may levy an amount not to exceed $80,000 for costs 
        associated with operating the cooperative secondary high school. 
           Sec. 14.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
        Minnesota Statutes, section 127A.49:  
              $9,110,000    .....     2000 
              $8,947,000    .....     2001 
           The 2000 appropriation includes $1,352,000 for 1999 and 
        $7,758,000 for 2000.  
           The 2001 appropriation includes $861,000 for 2000 and 
        $8,086,000 for 2001.  
           Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
        education aid according to Minnesota Statutes, sections 123B.40 
        to 123B.48 and 123B.87: 
             $10,996,000    .....      2000 
             $11,878,000    .....      2001 
           The 2000 appropriation includes $970,000 for 1999 and 
        $10,026,000 for 2000. 
           The 2001 appropriation includes $1,114,000 for 2000 and 
        $10,764,000 for 2001.  
           The department shall recompute the maximum allotments 
        established on March 1, 1999, for fiscal year 2000 under 
        Minnesota Statutes, sections 123B.42, subdivision 3, and 
        123B.44, subdivision 6, to reflect the amount appropriated in 
        this subdivision for fiscal year 2000. 
           Subd. 4.  [CONSOLIDATION TRANSITION AID.] For districts 
        consolidating under Minnesota Statutes, section 123A.485: 
             $451,000       .....     2000
             $375,000       .....     2001
           The 2000 appropriation includes $113,000 for 1999 and 
        $338,000 for 2000. 
           The 2001 appropriation includes $37,000 for 2000 and 
        $338,000 for 2001. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
        pupil transportation aid under Minnesota Statutes, section 
        123B.92, subdivision 9: 
             $18,586,000    .....     2000 
             $20,922,000    .....     2001 
           The 2000 appropriation includes $1,848,000 for 2000 and 
        $16,738,000 for 2001. 
           The 2001 appropriation includes $1,860,000 for 2000 and 
        $19,062,000 for 2001. 
           Subd. 6.  [MINNESOTA LEARNING RESOURCE CENTER.] For a grant 
        to A Chance To Grow/New Visions for start-up costs related to 
        implementing the Minnesota learning resource center's 
        comprehensive training program for education professionals 
        charged with helping children acquire basic reading and math 
        skills: 
             $450,000     .....     2000
           This appropriation is available until June 30, 2001.  This 
        is a one-time appropriation.  
           Subd. 7.  [HIV EDUCATION TRAINING SITES.] For regional 
        training sites for HIV education in schools established 
        according to Laws 1997, First Special Session chapter 4, article 
        6, section 18: 
             $458,000     .....     2000
           Of this amount, $150,000 must be used for continued 
        development of the existing sites; $150,000 for adding two 
        additional training sites; $75,000 for coordination, technical 
        assistance, evaluation, and contract management services for the 
        sites; and $50,000 for a report and recommendations on the 
        effectiveness of HIV education in public schools according to 
        Minnesota Statutes, section 121A.23. 
           This appropriation is available until June 30, 2001. 
           Subd. 8.  [MAGNET SCHOOL GRANTS.] For a magnet school grant:
             $50,000     .....     2000 
           This appropriation is for a planning grant for an urban 
        agricultural high school for curriculum, design, coordination 
        with the state's graduation standards, demographic research, 
        development of partnerships, site acquisition, market assessment 
        of student interest, collaboration with the local municipality 
        and school district on any proposed site prior to acquisition, 
        and facility predesign purposes. 
           This appropriation is available until June 30, 2001.* (The 
        preceding subdivision was vetoed by the governor.) 
           Subd. 9.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
        independent school district No. 690, Warroad, to operate the 
        Angle Inlet School: 
             $25,000     .....     2000
             $25,000     .....     2001
           Sec. 15.  [REPEALER.] 
           Minnesota Statutes 1998, section 127A.45, subdivision 5, is 
        repealed. 
           Sec. 16.  [EFFECTIVE DATES.] 
           Section 4 is effective December 31, 1999.  Sections 10, 11, 
        and 12 are effective for the payment of state aids for fiscal 
        year 2000 and later.  Section 13 is effective for taxes payable 
        in 2000. 
                                   ARTICLE 7 
                               NUTRITION PROGRAMS 
           Section 1.  [124D.1155] [FAST BREAK TO LEARNING GRANTS.] 
           Subdivision 1.  [ESTABLISHMENT.] A grant program is 
        established to ensure that all children have an opportunity to 
        eat a nutritious breakfast each school day and that barriers 
        such as the social stigma of poverty, or inadequate facilities 
        or transportation do not deny student access to nutritious food. 
           Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
        public or nonpublic elementary school that participates in the 
        federal school breakfast and lunch programs.  The commissioner 
        must give first priority to schools where at least 33 percent of 
        the lunches the school served to children during the preceding 
        school year were provided free or at a reduced price.  The 
        commissioner must give second priority to all other public or 
        nonpublic elementary schools. 
           Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
        receive reimbursement for providing breakfasts to all children, 
        a public or nonpublic elementary school must submit an 
        application to the commissioner in the form and manner the 
        commissioner prescribes.  The application must describe how the 
        applicant will encourage all children in the school to 
        participate in the breakfast program.  The applicant also must 
        demonstrate to the commissioner that the applicant will collect 
        a $1 local funding match for every $3 of state funding the 
        applicant receives.  The applicant must raise the local match 
        either by charging student households not eligible for federal 
        free or reduced price meals or by soliciting funds from 
        nonpublic sources.  The applicant can determine the method for 
        charging student households for school breakfast, but must 
        consider the household's ability to pay.  The applicant cannot 
        charge student households for school breakfast so that the total 
        charges exceed the difference between the revenue from federal 
        and state aids and the actual cost of providing the breakfast.  
        The commissioner may require additional information from the 
        applicant. 
           Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
        grants to the 41 grant recipients under Laws 1997, First Special 
        Session chapter 4, article 6, section 19, and then according to 
        need as determined by the percentage of students enrolled in the 
        school who are eligible for federal free or reduced price meals 
        and that meet the requirements of subdivisions 2 and 3 until 
        funding under this section is expended.  The commissioner shall 
        determine the amount of the grant using average statewide 
        statistics and individual school statistics adjusted for other 
        state and federal reimbursements.  Grant recipients must use the 
        proceeds to provide breakfast to school children every day 
        school is in session. 
           Subd. 5.  [EXPIRATION.] This section expires June 30, 2001. 
           Sec. 2.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated. 
           Subd. 2.  [SCHOOL LUNCH AID.] (a) For school lunch aid 
        according to Minnesota Statutes, section 124D.111, and Code of 
        Federal Regulations, title 7, section 210.17, and for school 
        milk aid according to Minnesota Statutes, section 124D.118:  
             $8,200,000     .....     2000 
             $8,200,000     .....     2001 
           (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 fully paid student 
        lunch shall be reduced and the aid for that year shall be 
        prorated among participating schools so as not to exceed the 
        total authorized appropriation for that year.  
           (d) Not more than $800,000 of the amount appropriated each 
        year may be used for school milk aid. 
           Subd. 3.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
        food service replacement aid under Minnesota Statutes, section 
        124D.119: 
             $150,000       .....     2000 
             $150,000       .....     2001 
           Subd. 4.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
        to learning grants under Minnesota Statutes, section 124D.1155: 
             $2,500,000       .....     2000
             $2,500,000       .....     2001
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [SCHOOL BREAKFAST.] To operate the school 
        breakfast program according to Minnesota Statutes, sections 
        124D.115 and 124D.117: 
             $456,000       .....     2000
             $456,000       .....     2001
           If the appropriation amount attributable to either year is 
        insufficient, the rate of payment for each fully paid 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 unexpended 
        balance remaining shall be used to subsidize the payments made 
        for school lunch aid per Minnesota Statutes, section 124D.111.  
           Up to one percent of the program funding can be used by the 
        department of children, families, and learning for technical and 
        administrative assistance. 
           Sec. 3.  [REPEALER.] 
           Minnesota Statutes 1998, sections 124D.112; 124D.113; and 
        124D.116, are repealed. 
                                   ARTICLE 8
                                   LIBRARIES
           Section 1.  Laws 1997, First Special Session chapter 4, 
        article 8, section 4, is amended to read: 
           Sec. 4.  [LIBRARY PILOT PROJECT.] 
           Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
        contrary and subject to approvals in subdivision 2, a public 
        library may operate as a pilot library project jointly with the 
        school library at Nashwauk-Keewatin high school, located in the 
        city of Nashwauk.  The public library is established to serve 
        persons within the boundaries of independent school district No. 
        319, except the city of Keewatin. 
           Subd. 2.  [APPROVALS.] Operation of the public library is 
        contingent upon a resolution approved by the governing bodies of 
        cities, towns, and unorganized townships within the geographical 
        boundaries of independent school district No. 319, except for 
        the city of Keewatin, entering into a joint powers agreement 
        under Minnesota Statutes 1998, section 471.59, to accomplish the 
        purpose of this section.  The joint powers agreement must 
        provide for continuing the library project if one party to the 
        agreement withdraws from the agreement.  For the purposes of 
        this subdivision, the Itasca county board is designated as the 
        governing body for the unorganized townships. 
           Subd. 3.  [BOARD; APPOINTMENTS.] The resolution joint 
        powers agreement in subdivision 2 shall provide for a library 
        board of five seven members as follows:  two members appointed 
        by the school board of independent school district No. 319, one 
        member appointed by each town board located within independent 
        school district No. 319 boundaries, one member appointed by the 
        council of the city of Nashwauk, and one member appointed by the 
        Itasca county board to represent the unorganized towns within 
        the school district territory. 
           Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
        members shall serve for the term of the pilot program library 
        project.  An appointing authority may remove for misconduct or 
        neglect any member it has appointed to the board and may replace 
        that member by appointment.  Board members shall receive no 
        compensation for their services but may be reimbursed for actual 
        and necessary travel expenses incurred in the discharge of 
        library board duties and activities. 
           Subd. 5.  [FUNDING.] For taxes payable in 1998 and, 1999, 
        2000, 2001, 2002, and 2003 only, the library board may levy a 
        tax in an amount up to $25,000 annually on property located 
        within the boundaries of independent school district No. 319, 
        except the city of Keewatin.  The Itasca county auditor shall 
        collect the tax and distribute it to the library board.  The 
        money may be used for library staff and for the purchase of 
        library materials, including computer software.  The levy must 
        also fund the amount necessary to receive bookmobile services 
        from the Arrowhead regional library system.  For taxes payable 
        in 1998 and, 1999, 2000, 2001, 2002, and 2003 only, the county 
        may not levy under Minnesota Statutes, section 134.07, for the 
        areas described in this section. 
           Subd. 6.  [BUILDING.] The school district shall provide the 
        physical space and costs associated with operating the library 
        including, but not limited to, heat, light, telephone service, 
        and maintenance. 
           Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
        the library board shall organize by electing one of its number 
        as president and one as secretary, and it may appoint other 
        officers it finds necessary. 
           Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
        and regulations for the library and for the conduct of its 
        business as may be expedient and conformable to law.  It shall 
        have exclusive control of the expenditure of all money collected 
        for it.  The library board shall appoint a qualified library 
        director and other staff, establish the compensation of 
        employees, and remove any of them for cause.  The library board 
        may contract with the school board, the regional library board, 
        or the city in which the library is located to provide 
        personnel, fiscal, or administrative services.  The contract 
        shall state the personnel, fiscal, and administrative services 
        and payments to be provided by each party. 
           Subd. 9.  [CRITERIA.] The library shall meet all 
        requirements in statutes and rules applicable to public 
        libraries and school media centers.  A media supervisor licensed 
        by the board of teaching may be the director of the library.  
        Public parking, restrooms, drinking water, and other necessities 
        shall be easily accessible to library patrons. 
           Subd. 10.  [REPORT.] The library board shall report to the 
        department of children, families, and learning by February 1, 
        1999, about the costs of providing the library service and the 
        number of patrons served. 
           Subd. 11.  [EXPIRATION.] This section expires January 31, 
        2000. 
           Sec. 2.  Laws 1997, First Special Session chapter 4, 
        article 9, section 7, subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner of 
        children, families, and learning shall establish a process and 
        application forms for library sites to apply for grant funds.  
        Libraries must describe how they will cooperate with schools.  
        An applicant must submit a technology plan with the 
        application.  Eligible applicants must, at a minimum, describe 
        how the proposed project is consistent with the technology plan; 
        describe how it ensures interoperability of hardware, software, 
        and telecommunication and meets existing Minnesota technical 
        standards appropriate to the project; identify the specific site 
        needs that the project will address; define the project's 
        expected outcomes; and provide the source, type, and amounts of 
        all matching funds.  To be eligible for a site-based technology 
        learning grant, a library site must: 
           (1) be a school library, a public library, or a partnership 
        of public and school libraries or be a publicly funded or 
        nonprofit library in partnership with school libraries, public 
        libraries, or public library systems; 
           (2) be a member of a regional multicounty, multitype 
        library cooperation system; 
           (3) have each dollar of grant money matched by at least $1 
        of library site money, including in-kind contributions; 
           (3) (4) agree to disseminate and share information about 
        its project; 
           (4) (5) provide a benefit to the greater community; and 
           (5) (6) maintain any ongoing costs of support for the 
        technology project after the initial funding under the grant 
        program. 
           Sec. 3.  Laws 1998, chapter 398, article 9, section 7, is 
        amended to read: 
           Sec. 7.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
        SCHOOL MEDIA CENTERS.] 
           Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
        children, families, and learning and the director of the higher 
        education services office shall establish a program to provide 
        statewide licenses to commercial electronic databases of 
        periodicals, encyclopedias, and associated reference materials 
        for school media centers and, public libraries, state government 
        agency libraries, and public or private college or university 
        libraries.  The commissioner, in consultation with Minitex and 
        in cooperation with the Library Planning Task Force, shall 
        solicit proposals for access licenses to commercial vendors of 
        the databases.  Responses to those proposals shall be evaluated 
        by staff of the office of library development and services in 
        the department of children, families, and learning, Minitex 
        staff, and a representative panel of librarians and school media 
        specialists and public librarians. 
           Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
        shall be made available to a school or school district that is a 
        member of a multicounty, multitype library system as defined in 
        Minnesota Statutes, section 134.001, subdivision 6, or a public 
        library as defined in Minnesota Statutes, section 134.001, 
        subdivision 2, that is a member of a multicounty, multitype 
        library system school media center or library that is eligible 
        to participate in MnLink.  With appropriate authentication any 
        user of an eligible library a school media center or library 
        that is eligible to participate in MnLink may have access to the 
        databases from a remote site. 
           Subd. 3.  [RESOURCE GRANTS.] Graduation rule resource 
        grants are available for the purposes of this section. 
           Sec. 4.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund to the department of children, families, 
        and learning for the fiscal years designated.  
           Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
        according to Minnesota Statutes, sections 134.32 to 134.35: 
             $8,495,000      .....     2000 
             $8,570,000      .....     2001 
           The 2000 appropriation includes $782,000 for 1999 and 
        $7,713,000 for 2000.  
           The 2001 appropriation includes $857,000 for 2000 and 
        $7,713,000 for 2001.  
           Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
        grants according to Minnesota Statutes, sections 134.353 and 
        134.354, to multicounty, multitype library systems: 
             $903,000       .....     2000 
             $903,000       .....     2001 
           The 2000 appropriation includes $90,000 for 1999 and 
        $813,000 for 2000.  
           The 2001 appropriation includes $90,000 for 2000 and 
        $813,000 for 2001. 
           Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
        grants to regional public library systems under Minnesota 
        Statutes, section 125B.20, subdivision 3: 
             $1,200,000     .....     2000 
             $1,200,000     .....     2001 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 5.  [LIBRARY FOR THE BLIND.] For compact shelving, 
        technology, and staffing for the Minnesota library for the blind 
        and physically handicapped: 
             $212,000     .....     2000 
           Subd. 6.  [DATABASE ACCESS PROGRAM.] For the database 
        access program for public libraries and school media centers 
        under section 3: 
               $250,000     .....     2000 
               $250,000     .....     2001 
           Sec. 5.  [REPEALER.] 
           Minnesota Statutes 1998, section 134.155, is repealed. 
                                   ARTICLE 9
                                EDUCATION POLICY
           Section 1.  Minnesota Statutes 1998, section 13.46, 
        subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
        a statute specifically provides a different classification, data 
        on individuals collected, maintained, used, or disseminated by 
        the welfare system is private data on individuals, and shall not 
        be disclosed except:  
           (1) according to section 13.05; 
           (2) according to court order; 
           (3) according to a statute specifically authorizing access 
        to the private data; 
           (4) to an agent of the welfare system, including a law 
        enforcement person, attorney, or investigator acting for it in 
        the investigation or prosecution of a criminal or civil 
        proceeding relating to the administration of a program; 
           (5) to personnel of the welfare system who require the data 
        to determine eligibility, amount of assistance, and the need to 
        provide services of additional programs to the individual; 
           (6) to administer federal funds or programs; 
           (7) between personnel of the welfare system working in the 
        same program; 
           (8) the amounts of cash public assistance and relief paid 
        to welfare recipients in this state, including their names, 
        social security numbers, income, addresses, and other data as 
        required, upon request by the department of revenue to 
        administer the property tax refund law, supplemental housing 
        allowance, early refund of refundable tax credits, and the 
        income tax.  "Refundable tax credits" means the dependent care 
        credit under section 290.067, the Minnesota working family 
        credit under section 290.0671, the property tax refund under 
        section 290A.04, and, if the required federal waiver or waivers 
        are granted, the federal earned income tax credit under section 
        32 of the Internal Revenue Code; 
           (9) between the department of human services and the 
        Minnesota department of economic security for the purpose of 
        monitoring the eligibility of the data subject for reemployment 
        insurance, for any employment or training program administered, 
        supervised, or certified by that agency, for the purpose of 
        administering any rehabilitation program, whether alone or in 
        conjunction with the welfare system, or to monitor and evaluate 
        the statewide Minnesota family investment program by exchanging 
        data on recipients and former recipients of food stamps, cash 
        assistance under chapter 256, 256D, 256J, or 256K, child care 
        assistance under chapter 119B, or medical programs under chapter 
        256B, 256D, or 256L; 
           (10) to appropriate parties in connection with an emergency 
        if knowledge of the information is necessary to protect the 
        health or safety of the individual or other individuals or 
        persons; 
           (11) data maintained by residential programs as defined in 
        section 245A.02 may be disclosed to the protection and advocacy 
        system established in this state according to Part C of Public 
        Law Number 98-527 to protect the legal and human rights of 
        persons with mental retardation or other related conditions who 
        live in residential facilities for these persons if the 
        protection and advocacy system receives a complaint by or on 
        behalf of that person and the person does not have a legal 
        guardian or the state or a designee of the state is the legal 
        guardian of the person; 
           (12) to the county medical examiner or the county coroner 
        for identifying or locating relatives or friends of a deceased 
        person; 
           (13) data on a child support obligor who makes payments to 
        the public agency may be disclosed to the higher education 
        services office to the extent necessary to determine eligibility 
        under section 136A.121, subdivision 2, clause (5); 
           (14) participant social security numbers and names 
        collected by the telephone assistance program may be disclosed 
        to the department of revenue to conduct an electronic data match 
        with the property tax refund database to determine eligibility 
        under section 237.70, subdivision 4a; 
           (15) the current address of a recipient of aid to families 
        with dependent children or Minnesota family investment 
        program-statewide may be disclosed to law enforcement officers 
        who provide the name of the recipient and notify the agency that:
           (i) the recipient: 
           (A) is a fugitive felon fleeing to avoid prosecution, or 
        custody or confinement after conviction, for a crime or attempt 
        to commit a crime that is a felony under the laws of the 
        jurisdiction from which the individual is fleeing; or 
           (B) is violating a condition of probation or parole imposed 
        under state or federal law; 
           (ii) the location or apprehension of the felon is within 
        the law enforcement officer's official duties; and 
           (iii)  the request is made in writing and in the proper 
        exercise of those duties; 
           (16) the current address of a recipient of general 
        assistance or general assistance medical care may be disclosed 
        to probation officers and corrections agents who are supervising 
        the recipient and to law enforcement officers who are 
        investigating the recipient in connection with a felony level 
        offense; 
           (17) information obtained from food stamp applicant or 
        recipient households may be disclosed to local, state, or 
        federal law enforcement officials, upon their written request, 
        for the purpose of investigating an alleged violation of the 
        Food Stamp Act, according to Code of Federal Regulations, title 
        7, section 272.1(c); 
           (18) the address, social security number, and, if 
        available, photograph of any member of a household receiving 
        food stamps shall be made available, on request, to a local, 
        state, or federal law enforcement officer if the officer 
        furnishes the agency with the name of the member and notifies 
        the agency that:  
           (i) the member: 
           (A) is fleeing to avoid prosecution, or custody or 
        confinement after conviction, for a crime or attempt to commit a 
        crime that is a felony in the jurisdiction the member is 
        fleeing; 
           (B) is violating a condition of probation or parole imposed 
        under state or federal law; or 
           (C) has information that is necessary for the officer to 
        conduct an official duty related to conduct described in subitem 
        (A) or (B); 
           (ii) locating or apprehending the member is within the 
        officer's official duties; and 
           (iii) the request is made in writing and in the proper 
        exercise of the officer's official duty; 
           (19) certain information regarding child support obligors 
        who are in arrears may be made public according to section 
        518.575; 
           (20) data on child support payments made by a child support 
        obligor and data on the distribution of those payments excluding 
        identifying information on obligees may be disclosed to all 
        obligees to whom the obligor owes support, and data on the 
        enforcement actions undertaken by the public authority, the 
        status of those actions, and data on the income of the obligor 
        or obligee may be disclosed to the other party; 
           (21) data in the work reporting system may be disclosed 
        under section 256.998, subdivision 7; 
           (22) to the department of children, families, and learning 
        for the purpose of matching department of children, families, 
        and learning student data with public assistance data to 
        determine students eligible for free and reduced price meals, 
        meal supplements, and free milk according to United States Code, 
        title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
        produce accurate numbers of students receiving aid to families 
        with dependent children or Minnesota family investment 
        program-statewide as required by section 126C.06; to allocate 
        federal and state funds that are distributed based on income of 
        the student's family; and to verify receipt of energy assistance 
        for the telephone assistance plan; 
           (23) the current address and telephone number of program 
        recipients and emergency contacts may be released to the 
        commissioner of health or a local board of health as defined in 
        section 145A.02, subdivision 2, when the commissioner or local 
        board of health has reason to believe that a program recipient 
        is a disease case, carrier, suspect case, or at risk of illness, 
        and the data are necessary to locate the person; 
           (24) to other state agencies, statewide systems, and 
        political subdivisions of this state, including the attorney 
        general, and agencies of other states, interstate information 
        networks, federal agencies, and other entities as required by 
        federal regulation or law for the administration of the child 
        support enforcement program; 
           (25) to personnel of public assistance programs as defined 
        in section 256.741, for access to the child support system 
        database for the purpose of administration, including monitoring 
        and evaluation of those public assistance programs; or 
           (26) to monitor and evaluate the statewide Minnesota family 
        investment program by exchanging data between the departments of 
        human services and children, families, and learning, on 
        recipients and former recipients of food stamps, cash assistance 
        under chapter 256, 256D, 256J, or 256K, child care assistance 
        under chapter 119B, or medical programs under chapter 256B, 
        256D, or 256L.  
           (b) Information on persons who have been treated for drug 
        or alcohol abuse may only be disclosed according to the 
        requirements of Code of Federal Regulations, title 42, sections 
        2.1 to 2.67. 
           (c) Data provided to law enforcement agencies under 
        paragraph (a), clause (15), (16), (17), or (18), or paragraph 
        (b), are investigative data and are confidential or protected 
        nonpublic while the investigation is active.  The data are 
        private after the investigation becomes inactive under section 
        13.82, subdivision 5, paragraph (a) or (b). 
           (d) Mental health data shall be treated as provided in 
        subdivisions 7, 8, and 9, but is not subject to the access 
        provisions of subdivision 10, paragraph (b). 
           Sec. 2.  Minnesota Statutes 1998, section 120A.40, is 
        amended to read: 
           120A.40 [SCHOOL CALENDAR.] 
           (a) Except for learning programs during summer, flexible 
        learning year programs authorized under sections 124D.12 to 
        124D.127, and learning year programs under section 124D.128, a 
        district must not commence an elementary or secondary school 
        year prior to before September 1, except as provided under 
        paragraph (b).  Days which are devoted to teachers' workshops 
        may be held before September 1.  Districts that enter into 
        cooperative agreements are encouraged to adopt similar school 
        calendars.  
           (b) A district may begin the school year on any day before 
        September 1 to accommodate a construction or remodeling project 
        of $400,000 or more affecting a district school facility. 
           Sec. 3.  Minnesota Statutes 1998, section 120B.30, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEWIDE TESTING.] (a) The commissioner, 
        with advice from experts with appropriate technical 
        qualifications and experience and stakeholders, shall include in 
        the comprehensive assessment system, for each grade level to be 
        tested, a single statewide norm-referenced or 
        criterion-referenced test, or a combination of a norm-referenced 
        and a criterion-referenced test, which shall be highly 
        correlated with the state's graduation standards and 
        administered annually to all students in the third, fifth, and 
        eighth grades.  The commissioner shall establish one or more 
        months during which schools shall administer the tests to 
        students each school year.  Only Minnesota basic skills tests in 
        reading, mathematics, and writing shall fulfill students' 
        testing requirements for a passing state notation.  
           (b) In addition, at the secondary level, districts shall 
        assess student performance in all required learning areas and 
        selected required standards within each area of the profile of 
        learning.  The testing instruments and testing process shall be 
        determined by the commissioner.  The results shall be aggregated 
        at the site and district level.  The testing shall be 
        administered beginning in the 1999-2000 school year and 
        thereafter. 
           (c) The comprehensive assessment system shall include an 
        evaluation of school site and school district performance levels 
        during the 1997-1998 school year and thereafter using an 
        established performance baseline developed from students' test 
        scores under this section that records, at a minimum, students' 
        unweighted mean test scores in each tested subject, a second 
        performance baseline that reports, at a minimum, the same 
        unweighted mean test scores of only those students enrolled in 
        the school by January 1 of the previous school year, and a third 
        performance baseline that reports the same unweighted test 
        scores of all students except those students receiving limited 
        English proficiency instruction.  The evaluation also shall 
        record separately, in proximity to the performance baselines, 
        the percentages of students who are eligible to receive a free 
        or reduced price school meal, demonstrate limited English 
        proficiency, or are eligible to receive special education 
        services. 
           (d) In addition to the testing and reporting requirements 
        under paragraphs (a), (b), and (c), the commissioner, in 
        consultation with the state board of education, shall include 
        the following components in the statewide educational 
        accountability and public reporting system: 
           (1) uniform statewide testing of all third, fifth, eighth, 
        and post-eighth grade students with exemptions, only with parent 
        or guardian approval, from the testing requirement only for 
        those very few students for whom the student's individual 
        education plan team under sections 125A.05 and 125A.06, 
        determines that the student is incapable of taking a statewide 
        test, or a limited English proficiency student under section 
        124D.59, subdivision 2, if the student has been in the United 
        States for fewer than 12 months and for whom special language 
        barriers exist, such as the student's native language does not 
        have a written form or the district does not have access to 
        appropriate interpreter services for the student's native 
        language; 
           (2) educational indicators that can be aggregated and 
        compared across school districts and across time on a statewide 
        basis; 
           (3) students' scores on the American College Test; 
           (4) participation in the National Assessment of Educational 
        Progress so that the state can benchmark its performance against 
        the nation and other states, and, where possible, against other 
        countries, and contribute to the national effort to monitor 
        achievement; and 
           (5) basic skills and advanced competencies connecting 
        teaching and learning to high academic standards, assessment, 
        and transitions to citizenship and employment. 
           (e) Districts must report exemptions under paragraph (d), 
        clause (1), to the commissioner consistent with a format 
        provided by the commissioner. 
           Sec. 4.  Minnesota Statutes 1998, section 120B.35, is 
        amended to read: 
           120B.35 [STUDENT ACHIEVEMENT LEVELS.] 
           (a) Each school year, a school district must determine if 
        the student achievement levels at each school site meet state 
        expectations.  If student achievement levels at a school site do 
        not meet state expectations for two out of three consecutive 
        school years, beginning with the 1999-2000 2000-2001 school 
        year, the district must work with the school site to adopt a 
        plan to raise student achievement levels to state expectations.  
        The legislature will determine state expectations after 
        receiving a recommendation from the commissioner of children, 
        families, and learning.  The commissioner must submit its 
        recommendations to the legislature by December 15, 1998 January 
        15, 2000.  
           (b) The department must assist the district and the school 
        site in developing a plan to improve student achievement.  The 
        plan must include parental involvement components. 
           Sec. 5.  Minnesota Statutes 1998, section 121A.61, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIRED POLICY.] Each school board must 
        adopt a written districtwide school discipline policy which 
        includes written rules of conduct for students, minimum 
        consequences for violations of the rules, and grounds and 
        procedures for removal of a student from class.  The policy must 
        be developed in consultation with the participation of 
        administrators, teachers, employees, pupils, parents, community 
        members, law enforcement agencies, county attorney offices, 
        social service agencies, and such other individuals or 
        organizations as the board determines appropriate.  A school 
        site council may adopt additional provisions to the policy 
        subject to the approval of the school board. 
           Sec. 6.  [121A.57] [CRISIS MANAGEMENT POLICY.] 
           Subdivision 1.  [MODEL POLICY.] By December 1, 1999, the 
        commissioner shall maintain and make available to school boards 
        a model crisis management policy. 
           Subd. 2.  [SCHOOL DISTRICT POLICY.] By July 1, 2000, a 
        school board must adopt a district crisis management policy to 
        address potential violent crisis situations in the district.  
        The policy must be developed in consultation with 
        administrators, teachers, employees, students, parents, 
        community members, law enforcement agencies, county attorney 
        offices, social service agencies, and any other appropriate 
        individuals or organizations. 
           Sec. 7.  Minnesota Statutes 1998, section 122A.09, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LICENSE AND RULES.] (a) The board must adopt 
        rules to license public school teachers and interns subject to 
        chapter 14. 
           (b) The board must adopt rules requiring a person to 
        successfully complete a skills examination in reading, writing, 
        and mathematics as a requirement for initial teacher licensure.  
        Such rules must 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 must adopt rules to approve teacher 
        preparation programs.  The board, upon the request of a 
        post-secondary student preparing for teacher licensure or a 
        licensed graduate of a teacher preparation program shall assist 
        in resolving a dispute between the person and a post-secondary 
        institution providing a teacher preparation program when the 
        dispute involves an institution's recommendation for licensure 
        affecting the person or the person's credentials.  At the 
        board's discretion, assistance may include the application of 
        chapter 14. 
           (d) The board must 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 must 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 September 1, 2001. 
           (f) The board must adopt rules requiring teacher educators 
        to work directly with elementary or secondary school teachers in 
        elementary or secondary schools to obtain periodic exposure to 
        the elementary or secondary teaching environment. 
           (g) The board must grant licenses to interns and to 
        candidates for initial licenses. 
           (h) The board must design and implement an assessment 
        system which requires a candidate for an initial license and 
        first continuing license to demonstrate the abilities necessary 
        to perform selected, representative teaching tasks at 
        appropriate levels. 
           (i) The board must receive recommendations from local 
        committees as established by the board for the renewal of 
        teaching licenses. 
           (j) The board must grant life licenses to those who qualify 
        according to requirements established by the board, and suspend 
        or revoke licenses pursuant to sections 122A.20 and 214.10.  The 
        board must not establish any expiration date for application for 
        life licenses.  
           (k) The board must adopt rules that require all licensed 
        teachers who are renewing their continuing license to include in 
        their renewal requirements further preparation in the areas of 
        using positive behavior interventions and in accommodating, 
        modifying, and adapting curricula, materials, and strategies to 
        appropriately meet the needs of individual students and ensure 
        adequate progress toward the state's graduation rule.  The rules 
        adopted under this paragraph apply to teachers who renew their 
        licenses in year 2001 and later. 
           (l) In adopting rules to license public school teachers who 
        provide health-related services for disabled children, the board 
        shall adopt rules consistent with license or registration 
        requirements of the commissioner of health and the 
        health-related boards who license personnel who perform similar 
        services outside of the school. 
           Sec. 8.  Minnesota Statutes 1998, section 122A.18, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [READING STRATEGIES.] All colleges and 
        universities approved by the board of teaching to prepare 
        persons for classroom teacher licensure must include in their 
        teacher preparation programs reading best practices that enable 
        classroom teacher licensure candidates to know how to teach 
        reading, such as phonics or other research-based best practices. 
           Sec. 9.  Minnesota Statutes 1998, section 122A.19, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TEACHER PREPARATION PROGRAMS.] For the purpose 
        of licensing bilingual and English as a second language 
        teachers, the board may approve programs at colleges or 
        universities designed for their training subject to the approval 
        of the state board of education. 
           Sec. 10.  Minnesota Statutes 1998, section 122A.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
        DENIAL.] The board of teaching or the state board of education, 
        or the commissioner, with the advice from an advisory task force 
        of supervisory personnel established under section 15.014, 
        whichever has jurisdiction over a teacher's licensure, may, on 
        the written complaint of the school board employing a teacher, a 
        teacher organization, or any other interested person, refuse to 
        issue, refuse to renew, suspend, or revoke a teacher's license 
        to teach for any of the following causes: 
           (1) Immoral character or conduct; 
           (2) Failure, without justifiable cause, to teach for the 
        term of the teacher's contract; 
           (3) Gross inefficiency or willful neglect of duty; or 
           (4) Failure to meet licensure requirements; or 
           (5) Fraud or misrepresentation in obtaining a license. 
           The written complaint must specify the nature and character 
        of the charges.  For purposes of this subdivision, the board of 
        teaching is delegated the authority to suspend or revoke 
        coaching licenses under the jurisdiction of the state board of 
        education. 
           Sec. 11.  Minnesota Statutes 1998, section 122A.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MANDATORY REPORTING.] A school board must report 
        to the board of teaching, the state board of education, or the 
        board of trustees of the Minnesota state colleges and 
        universities, whichever has jurisdiction over the teacher's 
        license, when its teacher is discharged or resigns from 
        employment after a charge is filed with the school board under 
        section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 
        7, or after charges are filed that are ground for discharge 
        under section 122A.40, subdivision 13, clauses (a), (b), (c), 
        (d), and (e), or when a teacher is suspended or resigns while an 
        investigation is pending under section 122A.40, subdivision 13, 
        clauses (a), (b), (c), (d), and (e); 122A.41, subdivisions 6, 
        clauses (1), (2), and (3), and 7; or 626.556.  The report must 
        be made to the appropriate licensing board within ten days after 
        the discharge, suspension, or resignation has occurred.  The 
        licensing board to which the report is made must investigate the 
        report for violation of subdivision 1 and the reporting board 
        must cooperate in the investigation.  Notwithstanding any 
        provision in chapter 13 or any law to the contrary, upon written 
        request from the licensing board having jurisdiction over the 
        teacher's license, a board or school superintendent shall 
        provide the licensing board with information about the teacher 
        from the district's files, any termination or disciplinary 
        proceeding, any settlement or compromise, or any investigative 
        file.  Upon written request from the appropriate licensing 
        board, a board or school superintendent may, at the discretion 
        of the board or school superintendent, solicit the written 
        consent of a student and the student's parent to provide the 
        licensing board with information that may aid the licensing 
        board in its investigation and license proceedings.  The 
        licensing board's request need not identify a student or parent 
        by name.  The consent of the student and the student's parent 
        must meet the requirements of chapter 13 and Code of Federal 
        Regulations, title 34, section 99.30.  The licensing board may 
        provide a consent form to the district.  Any data transmitted to 
        any board under this section is private data under section 
        13.02, subdivision 12, notwithstanding any other classification 
        of the data when it was in the possession of any other agency. 
           The licensing board to which a report is made must transmit 
        to the attorney general's office any record or data it receives 
        under this subdivision for the sole purpose of having the 
        attorney general's office assist that board in its 
        investigation.  When the attorney general's office has informed 
        an employee of the appropriate licensing board in writing that 
        grounds exist to suspend or revoke a teacher's license to teach, 
        that licensing board must consider suspending or revoking or 
        decline to suspend or revoke the teacher's license within 45 
        days of receiving a stipulation executed by the teacher under 
        investigation or a recommendation from an administrative law 
        judge that disciplinary action be taken. 
           Sec. 12.  Minnesota Statutes 1998, section 122A.21, is 
        amended to read: 
           122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.] 
           Each application for the issuance, renewal, or extension of 
        a license to teach and each application for the issuance, 
        renewal, or extension of a license as supervisory personnel must 
        be accompanied by a processing fee in an amount set by the board 
        of teaching by rule.  Each application for the issuance, 
        renewal, or extension of a license as supervisory personnel must 
        be accompanied by a processing fee in an amount set by the state 
        board of education by rule.  The processing fee for a teacher's 
        license and for the licenses of supervisory personnel must be 
        paid to the executive secretary of the board of teaching.  The 
        processing fee for the licenses of supervisory personnel must be 
        paid to the commissioner.  The executive secretary of the board 
        of teaching and the commissioner shall deposit the fees with the 
        state treasurer, as provided by law, and report each month to 
        the commissioner of finance the amount of fees collected.  The 
        fees as set by the boards board are nonrefundable for applicants 
        not qualifying for a license.  However, a fee must be refunded 
        by the state treasurer in any case in which the applicant 
        already holds a valid unexpired license.  The boards board may 
        waive or reduce fees for applicants who apply at the same time 
        for more than one license, even if the licenses are under the 
        jurisdiction of different boards. 
           Sec. 13.  Minnesota Statutes 1998, section 122A.40, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PROBATIONARY PERIOD.] The first three 
        consecutive years of a teacher's first teaching experience in 
        Minnesota in a single district is deemed to be a probationary 
        period of employment, and after completion thereof, the 
        probationary period in each district in which the teacher is 
        thereafter employed shall be one year.  The school board must 
        adopt a plan for written evaluation of teachers during the 
        probationary period.  Evaluation must occur at least three times 
        each year for a teacher performing services on 120 or more 
        school days, at least two times each year for a teacher 
        performing services on 60 to 119 school days, and at least one 
        time each year for a teacher performing services on fewer than 
        60 school days.  Days devoted to parent-teacher conferences, 
        teachers' workshops, and other staff development opportunities 
        and days on which a teacher is absent from school must not be 
        included in determining the number of school days on which a 
        teacher performs services.  During the probationary period any 
        annual contract with any teacher may or may not be renewed as 
        the school board shall see fit.  However, the board must give 
        any such teacher whose contract it declines to renew for the 
        following school year written notice to that effect before June 
        July 1.  If the teacher requests reasons for any nonrenewal of a 
        teaching contract, the board must give the teacher its reason in 
        writing, including a statement that appropriate supervision was 
        furnished describing the nature and the extent of such 
        supervision furnished the teacher during the employment by the 
        board, within ten days after receiving such request.  The school 
        board may, after a hearing held upon due notice, discharge a 
        teacher during the probationary period for cause, effective 
        immediately, under section 122A.44. 
           Sec. 14.  Minnesota Statutes 1998, section 122A.40, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
        PERIOD.] A teacher who has completed a probationary period in 
        any district, and who has not been discharged or advised of a 
        refusal to renew the teacher's contract pursuant to subdivision 
        5, shall have a continuing contract with such district.  
        Thereafter, the teacher's contract must remain in full force and 
        effect, except as modified by mutual consent of the board and 
        the teacher, until terminated by a majority roll call vote of 
        the full membership of the board prior to April 1 upon one of 
        the grounds specified in subdivision 9 or prior to June July 1 
        upon one of the grounds specified in subdivision 10 or 11, or 
        until the teacher is discharged pursuant to subdivision 13, or 
        by the written resignation of the teacher submitted prior to 
        April 1.  If an agreement as to the terms and conditions of 
        employment for the succeeding school year has not been adopted 
        pursuant to the provisions of sections 179A.01 to 179A.25 prior 
        to March 1, the teacher's right of resignation is extended to 
        the 30th calendar day following the adoption of said contract in 
        compliance with section 179A.20, subdivision 5.  Such written 
        resignation by the teacher is effective as of June 30 if 
        submitted prior to that date and the teachers' right of 
        resignation for the school year then beginning shall cease on 
        July 15.  Before a teacher's contract is terminated by the 
        board, the board must notify the teacher in writing and state 
        its ground for the proposed termination in reasonable detail 
        together with a statement that the teacher may make a written 
        request for a hearing before the board within 14 days after 
        receipt of such notification.  If the grounds are those 
        specified in subdivision 9 or 13, the notice must also state a 
        teacher may request arbitration under subdivision 15.  Within 14 
        days after receipt of this notification the teacher may make a 
        written request for a hearing before the board or an arbitrator 
        and it shall be granted upon reasonable notice to the teacher of 
        the date set for hearing, before final action is taken.  If no 
        hearing is requested within such period, it shall be deemed 
        acquiescence by the teacher to the board's action.  Such 
        termination shall take effect at the close of the school year in 
        which the contract is terminated in the manner aforesaid.  Such 
        contract may be terminated at any time by mutual consent of the 
        board and the teacher and this section does not affect the 
        powers of a board to suspend, discharge, or demote a teacher 
        under and pursuant to other provisions of law. 
           Sec. 15.  Minnesota Statutes 1998, section 122A.40, 
        subdivision 16, is amended to read: 
           Subd. 16.  [DECISION.] After the hearing, the board must 
        issue a written decision and order.  If the board orders 
        termination of a continuing contract or discharge of a teacher, 
        its decision must include findings of fact based upon competent 
        evidence in the record and must be served on the teacher, 
        accompanied by an order of termination or discharge, prior to 
        April 1 in the case of a contract termination for grounds 
        specified in subdivision 9, prior to June July 1 for grounds 
        specified in subdivision 10 or 11, or within ten days after 
        conclusion of the hearing in the case of a discharge.  If the 
        decision of the board or of a reviewing court is favorable to 
        the teacher, the proceedings must be dismissed and the decision 
        entered in the board minutes, and all references to such 
        proceedings must be excluded from the teacher's record file. 
           Sec. 16.  Minnesota Statutes 1998, section 122A.41, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
        DISCHARGE OR DEMOTION.] After the completion of such 
        probationary period, without discharge, such teachers as are 
        thereupon reemployed shall continue in service and hold their 
        respective position during good behavior and efficient and 
        competent service and must not be discharged or demoted except 
        for cause after a hearing. 
           A probationary teacher is deemed to have been reemployed 
        for the ensuing school year, unless the school board in charge 
        of such school gave such teacher notice in writing before June 
        July 1 of the termination of such employment.  In event of such 
        notice the employment terminates at the close of the school 
        sessions of the current school year. 
           Sec. 17.  Minnesota Statutes 1998, section 122A.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
        board must use the revenue authorized in section 122A.61 for 
        in-service education for programs under section 120B.22, 
        subdivision 2, or for staff development plans under this 
        section.  The board must establish a an advisory staff 
        development committee to develop the plan, assist 
        site decision-making professional development teams in 
        developing a site plan consistent with the goals of the plan, 
        and evaluate staff development efforts at the site level.  A 
        majority of the advisory committee and the site professional 
        development team must be teachers representing various grade 
        levels, subject areas, and special education.  The advisory 
        committee must also include nonteaching staff, parents, and 
        administrators.  Districts must report staff development results 
        and expenditures to the commissioner in the form and manner 
        determined by the commissioner.  The expenditure report must 
        include expenditures by the board for district level activities 
        and expenditures made by the staff.  The report must provide a 
        breakdown of expenditures for (1) curriculum development and 
        programs, (2) in-service education, workshops, and conferences, 
        and (3) the cost of teachers or substitute teachers for staff 
        development purposes.  Within each of these categories, the 
        report must also indicate whether the expenditures were incurred 
        at the district level or the school site level, and whether the 
        school site expenditures were made possible by the grants to 
        school sites that demonstrate exemplary use of allocated staff 
        development revenue.  These expenditures are to be reported 
        using the UFARS system.  The commissioner shall report the staff 
        development expenditure data to the education committees of the 
        legislature by February 15 each year.  
           Sec. 18.  [123A.245] [COOPERATIVE UNITS; ELIGIBILITY FOR 
        GRANTS.] 
           A cooperative unit, through its governing board, may apply 
        for all competitive grants administered by agencies of the state 
        and other government or nongovernment sources. 
           Sec. 19.  Minnesota Statutes 1998, section 123B.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
        SUPPORT.] (a) A district must not be required by any type of 
        formal or informal agreement except an agreement to provide 
        building space according to paragraph (f), including a joint 
        powers agreement, or membership in any cooperative unit defined 
        in section 123A.24, subdivision 2, to participate in or provide 
        financial support for the purposes of the agreement for a time 
        period in excess of four fiscal years, or the time period set 
        forth in this subdivision.  Any agreement, part of an agreement, 
        or other type of requirement to the contrary is void.  This 
        paragraph applies only to agreements entered into between July 
        1, 1993, and June 30, 1999. 
           (b) This subdivision shall not affect the continued 
        liability of a district for its share of bonded indebtedness or 
        other debt incurred as a result of any agreement before July 1, 
        1993.  The district is liable only until the obligation or debt 
        is discharged and only according to the payment schedule in 
        effect on July 1, 1993, except that the payment schedule may be 
        altered for the purpose of restructuring debt or refunding bonds 
        outstanding on July 1, 1993, if the annual payments of the 
        district are not increased and if the total obligation of the 
        school district for its share of outstanding bonds or other debt 
        is not increased. 
           (c) To cease participating in or providing financial 
        support for any of the services or activities relating to the 
        agreement or to terminate participation in the agreement, the 
        board must adopt a resolution and notify other parties to the 
        agreement of its decision on or before February 1 of any year.  
        The cessation or withdrawal shall be effective June 30 of the 
        same year except that for a member of an education district 
        organized under sections 123A.15 to 123A.19 or an intermediate 
        district organized under chapter 136D, cessation or withdrawal 
        shall be effective June 30 of the following fiscal year.  At the 
        option of the board, cessation or withdrawal may be effective 
        June 30 of the following fiscal year for a district 
        participating in any type of agreement.  
           (d) Before issuing bonds or incurring other debt, the 
        governing body responsible for implementing the agreement must 
        adopt a resolution proposing to issue bonds or incur other debt 
        and the proposed financial effect of the bonds or other debt 
        upon each participating district.  The resolution must be 
        adopted within a time sufficient to allow the board to adopt a 
        resolution within the time permitted by this paragraph and to 
        comply with the statutory deadlines set forth in sections 
        122A.40, 122A.41, and 123A.33.  The governing body responsible 
        for implementing the agreement shall notify each participating 
        board of the contents of the resolution.  Within 120 days of 
        receiving the resolution of the governing body, the school board 
        of the participating district shall adopt a resolution stating: 
           (1) its concurrence with issuing bonds or incurring other 
        debt; 
           (2) its intention to cease participating in or providing 
        financial support for the service or activity related to the 
        bonds or other debt; or 
           (3) its intention to terminate participation in the 
        agreement. 
           A board adopting a resolution according to clause (1) is 
        liable for its share of bonded indebtedness or other debt as 
        proposed by the governing body implementing the agreement.  A 
        school board adopting a resolution according to clause (2) is 
        not liable for the bonded indebtedness or other debt, as 
        proposed by the governing body, related to the services or 
        activities in which the district ceases participating or 
        providing financial support.  A board adopting a resolution 
        according to clause (3) is not liable for the bonded 
        indebtedness or other debt proposed by the governing body 
        implementing the agreement. 
           (e) After July 1, 1993, a district is liable according to 
        paragraph (d) for its share of bonded indebtedness or other debt 
        incurred by the governing body implementing the agreement to the 
        extent that the bonds or other debt are directly related to the 
        services or activities in which the district participates or for 
        which the district provides financial support.  The district has 
        continued liability only until the obligation or debt is 
        discharged and only according to the payment schedule in effect 
        at the time the governing body implementing the agreement 
        provides notice to the school board, except that the payment 
        schedule may be altered for the purpose of refunding the 
        outstanding bonds or restructuring other debt if the annual 
        payments of the district are not increased and if the total 
        obligation of the district for the outstanding bonds or other 
        debt is not increased. 
           (f) A district that is a member of a cooperative unit as 
        defined in section 123A.24, subdivision 2, may obligate itself 
        to participate in and provide financial support for an agreement 
        with a cooperative unit to provide school building space for a 
        term not to exceed two years with an option on the part of the 
        district to renew for an additional two years.  
           (g) Notwithstanding any limitations imposed under this 
        subdivision, a school district may, according to section 
        123B.51, subdivision 4, enter into a lease of all or a portion 
        of a schoolhouse that is not needed for school purposes, 
        including, but not limited to, a lease with a term of more than 
        one year. 
           Sec. 20.  Minnesota Statutes 1998, section 123B.77, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
        the board of each district must approve and adopt its revenue 
        and expenditure budgets for the next school year.  The budget 
        document so adopted must be considered an 
        expenditure-authorizing or appropriations document.  No funds 
        shall be expended by any board or district for any purpose in 
        any school year prior to the adoption of the budget document 
        which authorizes that expenditure, or prior to an amendment to 
        the budget document by the board to authorize the expenditure.  
        Expenditures of funds in violation of this subdivision shall be 
        considered unlawful expenditures.  Prior to the appropriation of 
        revenue for the next school year in the initial budget, the 
        board shall calculate the general education revenue, basic 
        skills revenue, and referendum revenue for that year that it 
        estimates will be generated by the pupils in attendance at each 
        site, and shall inform each site of that estimate and report 
        this information to the department of children, families, and 
        learning. 
           Sec. 21.  Minnesota Statutes 1998, section 123B.83, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
        unappropriated operating fund balance as defined in section 
        126C.01, subdivision 11, calculated in accordance with the 
        uniform financial accounting and reporting standards for 
        Minnesota school districts, as of June 30 each year, is more 
        than 2-1/2 percent of the year's expenditure amount, the 
        district must, prior to January 31 of the next fiscal year, 
        submit a special operating plan to reduce the district's deficit 
        expenditures to the commissioner for approval.  The commissioner 
        may also require the district to provide evidence that the 
        district meets and will continue to meet all of the curriculum 
        high school graduation requirements of the state board. 
           Notwithstanding any other law to the contrary, a district 
        submitting a special operating plan to the commissioner under 
        this clause which is disapproved by the commissioner must not 
        receive any aid pursuant to chapters 120B, 122A, 123A, 123B, 
        124D, 125A, 126C, and 127A until a special operating plan of the 
        district is so approved. 
           (2) A district must receive aids pending the approval of 
        its special operating plan under clause (1).  A district which 
        complies with its approved operating plan must receive aids as 
        long as the district continues to comply with the approved 
        operating plan. 
           Sec. 22.  Minnesota Statutes 1998, section 123B.90, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STUDENT TRAINING.] (a) Each district must 
        provide public school pupils enrolled in grades kindergarten 
        through 10 with age-appropriate school bus safety training.  The 
        training must be results-oriented and shall consist of both 
        classroom instruction and practical training using a school 
        bus.  Upon completing the training, a student shall be able to 
        demonstrate knowledge and understanding of at least the 
        following competencies and concepts: 
           (1) transportation by school bus is a privilege and not a 
        right; 
           (2) district policies for student conduct and school bus 
        safety; 
           (3) appropriate conduct while on the school bus; 
           (4) the danger zones surrounding a school bus; 
           (5) procedures for safely boarding and leaving a school 
        bus; 
           (6) procedures for safe street or road crossing; and 
           (7) school bus evacuation and other emergency procedures; 
        and 
           (8) appropriate training on the use of lap belts or lap and 
        shoulder belts, if the district uses buses equipped with lap 
        belts or lap and shoulder belts. 
           (b) Each nonpublic school located within the district must 
        provide all nonpublic school pupils enrolled in grades 
        kindergarten through 10 who are transported by school bus at 
        public expense and attend school within the district's 
        boundaries with training as required in paragraph (a).  The 
        school district shall make a bus available for the practical 
        training if the district transports the nonpublic students.  
        Each nonpublic school shall provide the instruction. 
           (c) All students enrolled in grades kindergarten through 3 
        who are transported by school bus and are enrolled during the 
        first or second week of school must demonstrate achievement of 
        the school bus safety training competencies by the end of the 
        third week of school.  All students enrolled in grades 4 through 
        10 who are transported by school bus and are enrolled during the 
        first or second week of school must demonstrate achievement of 
        the competencies by the end of the sixth week of school.  
        Students enrolled in grades kindergarten through 10 who enroll 
        in a school after the second week of school and are transported 
        by school bus shall undergo school bus safety training and 
        demonstrate achievement of the school bus safety competencies 
        within four weeks of the first day of attendance.  The pupil 
        transportation safety director in each district must certify to 
        the commissioner annually that all students transported by 
        school bus within the district have satisfactorily demonstrated 
        knowledge and understanding of the school bus safety 
        competencies according to this section or provide an explanation 
        for a student's failure to demonstrate the competencies.  The 
        principal or other chief administrator of each nonpublic school 
        must certify annually to the public transportation safety 
        director of the district in which the school is located that all 
        of the school's students transported by school bus at public 
        expense have received training.  A district may deny 
        transportation to a student who fails to demonstrate the 
        competencies, unless the student is unable to achieve the 
        competencies due to a disability, or to a student who attends a 
        nonpublic school that fails to provide training as required by 
        this subdivision. 
           (d) A district and a nonpublic school with students 
        transported by school bus at public expense must, to the extent 
        possible, provide kindergarten pupils with bus safety training 
        before the first day of school. 
           (e) A district and a nonpublic school with students 
        transported by school bus at public expense must also provide 
        student safety education for bicycling and pedestrian safety, 
        for students enrolled in grades kindergarten through 5. 
           (f) A district and a nonpublic school with students 
        transported by school bus at public expense must make reasonable 
        accommodations for the school bus, bicycle, and pedestrian 
        safety training of pupils known to speak English as a second 
        language and pupils with disabilities. 
           Sec. 23.  Minnesota Statutes 1998, section 123B.90, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner shall 
        develop a comprehensive model school bus safety training program 
        for pupils who ride the bus that includes bus safety curriculum 
        for both classroom and practical instruction, methods for 
        assessing attainment of school bus safety competencies, and 
        age-appropriate instructional materials.  The model training 
        program for students riding buses with lap belts or lap and 
        shoulder belts must include information on the appropriate use 
        of lap belts or lap and shoulder belts.  The program must be 
        adaptable for use by students with disabilities. 
           Sec. 24.  Minnesota Statutes 1998, section 123B.91, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMPREHENSIVE POLICY.] Each district must 
        develop and implement a comprehensive, written policy governing 
        pupil transportation safety, including transportation of 
        nonpublic school students, when applicable.  The policy shall, 
        at minimum, contain: 
           (1) provisions for appropriate student bus safety training 
        under section 123B.90; 
           (2) rules governing student conduct on school buses and in 
        school bus loading and unloading areas; 
           (3) a statement of parent or guardian responsibilities 
        relating to school bus safety; 
           (4) provisions for notifying students and parents or 
        guardians of their responsibilities and the rules, including the 
        district's seat belt policy, if applicable; 
           (5) an intradistrict system for reporting school bus 
        accidents or misconduct and a system for dealing with local law 
        enforcement officials in cases of criminal conduct on a school 
        bus; 
           (6) a discipline policy to address violations of school bus 
        safety rules, including procedures for revoking a student's bus 
        riding privileges in cases of serious or repeated misconduct; 
           (7) a system for integrating school bus misconduct records 
        with other discipline records; 
           (8) a statement of bus driver duties; 
           (9) planned expenditures for safety activities under 
        section 123B.89 and, where applicable, provisions governing bus 
        monitor qualifications, training, and duties; 
           (10) rules governing the use and maintenance of type III 
        vehicles, drivers of type III vehicles, qualifications to drive 
        a type III vehicle, qualifications for a type III vehicle and 
        the circumstances under which a student may be transported in a 
        type III vehicle; 
           (11) operating rules and procedures; 
           (12) provisions for annual bus driver in-service training 
        and evaluation; 
           (13) emergency procedures; 
           (14) a system for maintaining and inspecting equipment; 
           (15) requirements of the school district, if any, that 
        exceed state law minimum requirements for school bus operations; 
        and 
           (16) requirements for basic first aid training, which must 
        include the Heimlich maneuver and procedures for dealing with 
        obstructed airways, shock, bleeding, and seizures. 
           Districts are encouraged to use the model policy developed 
        by the Minnesota school boards association, the department of 
        public safety, and the department of children, families, and 
        learning, as well as the current edition of the "National 
        Standards for School Buses and Operations" published by the 
        National Safety Council, in developing safety policies.  Each 
        district shall review its policy annually and make appropriate 
        amendments, which must be submitted to the school bus safety 
        advisory committee within one month of approval by the school 
        board. 
           Sec. 25.  Minnesota Statutes 1998, section 124D.03, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [TERMINATION OF ENROLLMENT.] A district may 
        terminate the enrollment of a nonresident student enrolled under 
        this section or section 124D.07 or 124D.08 at the end of a 
        school year if the student meets the definition of a habitual 
        truant under section 260.015, subdivision 19, the student has 
        been provided appropriate services under chapter 260A, and the 
        student's case has been referred to juvenile court.  A district 
        may also terminate the enrollment of a nonresident student over 
        the age of 16 enrolled under this section if the student is 
        absent without lawful excuse for one or more periods on 15 
        school days and has not lawfully withdrawn from school under 
        section 120A.22, subdivision 8. 
           Sec. 26.  Minnesota Statutes 1998, section 124D.86, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
        under this section must be used for programs established under a 
        desegregation plan mandated by the state board or under court 
        order, to increase learning opportunities and reduce the 
        learning gap between learners living in high concentrations of 
        poverty and their peers. 
           Sec. 27.  Minnesota Statutes 1998, section 124D.86, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
        later fiscal years, integration revenue equals the following 
        amounts: 
           (1) for independent school district No. 709, Duluth, $193 
        times the resident pupil units for the school year; 
           (2) for independent school district No. 625, St. Paul, $427 
        times the resident pupil units for the school year; 
           (3) for special school district No. 1, Minneapolis, $523 
        times the resident pupil units for the school year; and 
           (4) for a district not listed in clause (1), (2), or (3) 
        that is required to implement a plan according to the 
        requirements of Minnesota Rules, parts 3535.0200 to 
        3535.2200 3535.0100 to 3535.0180, as proposed in 23 State 
        Register 1344, December 7, 1998, the lesser of the actual cost 
        of implementing the plan during the fiscal year or $93 times the 
        resident pupil units for the school year. 
           Sec. 28.  Minnesota Statutes 1998, section 124D.89, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 
        cultural exchange grant program is established to develop and 
        create opportunities for children and staff of different ethnic, 
        racial, and other cultural backgrounds to experience educational 
        and social exchange.  Student and staff exchanges under this 
        section may only take place between a district with a 
        desegregation plan approved by the state board of education and 
        a district without a desegregation plan.  Participating school 
        districts shall offer summer programs for credit with the goals 
        set forth in paragraphs (b) to (e). 
           (b) The program must develop curriculum reflective of 
        particular ethnic, racial, and other cultural aspects of various 
        demographic groups in the state. 
           (c) The program must develop immersion programs that are 
        coordinated with the programs offered in paragraph (b). 
           (d) The program must create opportunities for students from 
        across the state to enroll in summer programs in districts other 
        than the one of residence, or in other schools within their 
        district of residence. 
           (e) The program must create opportunities for staff 
        exchanges on a cultural basis. 
           Sec. 29.  Minnesota Statutes 1998, section 125A.09, 
        subdivision 11, is amended to read: 
           Subd. 11.  [HEARING REVIEW OFFICER'S QUALIFICATIONS.] The 
        commissioner must select an individual who has the 
        qualifications enumerated in this subdivision to serve as the 
        hearing review officer: 
           (1) the individual must be knowledgeable and impartial; 
           (2) the individual must not have a personal interest in or 
        specific involvement with the student who is a party to the 
        hearing; 
           (3) the individual must not have been employed as an 
        administrator by the district that is a party to the hearing; 
           (4) the individual must not have been involved in the 
        selection of the administrators of the district that is a party 
        to the hearing; 
           (5) the individual must not have a personal, economic, or 
        professional interest in the outcome of the hearing other than 
        the proper administration of the federal and state laws, rules, 
        and policies; 
           (6) the individual must not have substantial involvement in 
        the development of a state or local policy or procedures that 
        are challenged in the appeal; 
           (7) the individual is not a current employee or board 
        member of a Minnesota public school district, education 
        district, intermediate unit or regional education agency, or the 
        department, and the state board of education; and 
           (8) the individual is not a current employee or board 
        member of a disability advocacy organization or group. 
           Sec. 30.  Minnesota Statutes 1998, section 127A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPOINTMENT AND DUTIES.] The department 
        shall be under the administrative control of the commissioner of 
        children, families, and learning which office is 
        established.  The commissioner shall be the secretary of the 
        state board.  The governor shall appoint the commissioner under 
        the provisions of section 15.06.  
           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 is 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, and to safeguard the 
        finances pertaining thereto, and to enable the state board to 
        carry out its duties. 
           Sec. 31.  [127A.25] [SURVEY OF DISTRICTS.] 
           The commissioner of children, families, and learning shall 
        survey the state's school districts and report to the education 
        committees of the legislature by January 15 of each odd-numbered 
        year on the status of the teacher shortage and the substitute 
        teacher shortage, including shortages in subject areas and 
        regions of the state.  The report must also include how 
        districts are making progress in hiring teachers and substitutes 
        in the areas of shortage. 
           Sec. 32.  Minnesota Statutes 1998, section 127A.41, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF 
        DISTRICT SCHOOLS AND ACCOUNTS 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 commissioner.  The 
        accounts and records of any district must 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. 33.  Minnesota Statutes 1998, section 127A.42, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
        such notice is given may, by a majority vote of the whole board, 
        decide to dispute that the specified violation exists or that 
        the time allowed is reasonable or the correction specified is 
        correct, or that the commissioner may reduce aids.  The board 
        must give the commissioner written notice of the decision.  If 
        the commissioner, after further investigation as the 
        commissioner deems necessary, adheres to the previous 
        notice, the board shall be entitled to a hearing by the state 
        board the commissioner shall notify the school board of its 
        decision.  The state board must set a hearing time and place and 
        the board of the district must be given notice by mail.  The 
        state board must adopt rules governing the proceedings for 
        hearings.  The hearings must be designed to give a full and fair 
        hearing and permit interested parties an opportunity to produce 
        evidence relating to the issues involved.  The rules may provide 
        that any question of fact to be determined at the hearing may be 
        referred to one or more members of the board or to an employee 
        of the state board acting as a referee to hear evidence and 
        report the testimony taken to the state board.  The state board, 
        or a person designated to receive evidence at a hearing, shall 
        have the same right to issue subpoenas and administer oaths and 
        parties to the hearing shall have the same right to subpoenas 
        issued as are allowed for proceedings before the industrial 
        commission.  A stenographic record must be made of all testimony 
        given and other proceedings during the hearing.  If practicable, 
        rules governing admission of evidence in courts shall apply to 
        the hearing.  The decision of the state board must be in writing 
        and the controlling facts upon which the decision is made must 
        be stated in sufficient detail to apprise the parties and the 
        reviewing court of the basis and reason for the decision.  The 
        decision must be confined to whether any of the specified 
        violations existed at the date of the commissioner's first 
        notice, whether the violations were corrected within the time 
        permitted, and whether the violations require reduction of the 
        state aids under this section. 
           Sec. 34.  Minnesota Statutes 1998, section 127A.42, 
        subdivision 6, is amended to read: 
           Subd. 6.  [VIOLATION; AID REDUCTION.] The commissioner 
        shall not reduce state aids payable to the district if the 
        violation specified is corrected within the time permitted, or 
        if the commissioner on being notified of the district board's 
        decision to dispute decides the violation does not exist, or if 
        the state board decides after hearing no violation specified in 
        the commissioner's notice existed at the time of the notice, or 
        that the violations were corrected within the time permitted.  
        Otherwise state aids payable to the district for the year in 
        which the violation occurred shall be reduced as follows:  The 
        total amount of state aids to which the district may be entitled 
        shall be reduced in the proportion that the period during which 
        a specified violation continued, computed from the last day of 
        the time permitted for correction, bears to the total number of 
        days school is held in the district during the year in which a 
        violation exists, multiplied by 60 percent of the basic revenue, 
        as defined in section 126C.10, subdivision 2, of the district 
        for that year. 
           Sec. 35.  Minnesota Statutes 1998, section 127A.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEPARTMENT.] A state department of 
        children, families, and learning is hereby created which shall 
        be maintained under the direction of a state board of education 
        composed of nine representative citizens of the state, at least 
        one of whom shall reside in each congressional district in the 
        state. 
           Of the nine representative citizens of the state who are 
        appointed to the state board of education not less than three 
        members thereof shall previously thereto have served as an 
        elected member of a board of education of a school district 
        however organized. 
           The members of the state board shall be appointed by the 
        governor, with the advice and consent of the senate.  One member 
        shall be chosen annually as president, but no member shall serve 
        as president more than three consecutive years.  The state board 
        shall hold its annual meeting in August.  It shall hold meetings 
        on dates and at places as it designates.  No member shall hold 
        any public office, or represent or be employed by any board of 
        education or school district, public or private, and shall not 
        voluntarily have any personal financial interest in any contract 
        with a board of education or school district, or be engaged in 
        any capacity where a conflict of interest may arise. 
           Sec. 36.  Minnesota Statutes 1998, section 127A.66, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ADMINISTRATIVE RULES.] The state board 
        commissioner may adopt new rules and amend them or amend any of 
        its existing rules only under specific authority and consistent 
        with the requirements of chapter 14.  The state board 
        commissioner may repeal any of its the commissioner's existing 
        rules.  Notwithstanding the provisions of section 14.05, 
        subdivision 4, the state board commissioner may grant a variance 
        to its the commissioner's 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 commissioner from making technical 
        changes or corrections to its the commissioner's rules. 
           Sec. 37.  Minnesota Statutes 1998, section 128C.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BOARD.] (a) The league must have a 20-member 
        governing board. 
           (1) The governor must appoint four members according to 
        section 15.0597.  Each of the four appointees must be a parent.  
        At least one of them must be an American Indian, an Asian, a 
        Black, or a Hispanic. 
           (2) The Minnesota association of secondary school 
        principals must appoint two of its members. 
           (3) The remaining 14 members must be selected according to 
        league bylaws.  
           (b) The terms, compensation, removal of members, and the 
        filling of membership vacancies are governed by section 15.0575, 
        except that the four-year terms begin on August 1 and end on 
        July 31.  As provided by section 15.0575, members who are 
        full-time state employees or full-time employees of school 
        districts or other political subdivisions of the state may not 
        receive any per diem payment for service on the board. 
           Sec. 38.  Minnesota Statutes 1998, section 128C.02, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [PURCHASING.] In purchasing goods and services, 
        the league must follow all laws that apply to school districts 
        under sections 123B.52 and 471.345. 
           Sec. 39.  Minnesota Statutes 1998, section 128C.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
        children, families, and learning shall obtain and review the 
        following information about the league: 
           (1) an accurate and concise summary of the annual financial 
        and compliance audit prepared by the state auditor that includes 
        information about the compensation of and the expenditures by 
        the executive director of the league and league staff; 
           (2) a list of all complaints filed with the league and all 
        lawsuits filed against the league and the disposition of those 
        complaints and lawsuits; 
           (3) an explanation of the executive director's performance 
        review; 
           (4) information about the extent to which the league has 
        implemented its affirmative action policy, its comparable worth 
        plan, and its sexual harassment and violence policy and rules; 
        and 
           (5) an evaluation of any proposed changes in league policy. 
           The commissioner may examine any league activities or 
        league-related issues when the commissioner believes this review 
        is warranted. 
           Sec. 40.  Minnesota Statutes 1998, section 169.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
        used to transport pupils to or from a school defined in section 
        120A.22, or to or from school-related activities, by the school 
        or a school district, or by someone under an agreement with the 
        school or a school district.  A school bus does not include a 
        motor vehicle transporting children to or from school for which 
        parents or guardians receive direct compensation from a school 
        district, a motor coach operating under charter carrier 
        authority, a transit bus providing services as defined in 
        section 174.22, subdivision 7, or a vehicle otherwise qualifying 
        as a type III vehicle under paragraph (5), when the vehicle is 
        properly registered and insured and being driven by an employee 
        or agent of a school district for nonscheduled transportation.  
        A school bus may be type A, type B, type C, or type D, or type 
        III as follows:  
           (1) A "type A school bus" is a conversion or body 
        constructed upon a van-type or cutaway front section vehicle 
        with a left-side driver's door, designed for carrying more than 
        ten persons.  This definition includes two classifications:  
        type A-I, with a gross vehicle weight rating (GVWR) over 10,000 
        pounds; and type A-II, with a GVWR of 10,000 pounds or less. 
           (2) A "type B school bus" is a conversion or body 
        constructed and installed upon a van or front-section vehicle 
        chassis, or stripped chassis, with a gross vehicle weight rating 
        of more than 10,000 pounds, designed for carrying more than ten 
        persons.  Part of the engine is beneath or behind the windshield 
        and beside the driver's seat.  The entrance door is behind the 
        front wheels. 
           (3) A "type C school bus" is a body installed upon a flat 
        back cowl chassis with a gross vehicle weight rating of more 
        than 10,000 pounds, designed for carrying more than ten 
        persons.  All of the engine is in front of the windshield and 
        the entrance door is behind the front wheels.  A type C school 
        bus has a maximum length of 45 feet.  
           (4) A "type D school bus" is a body installed upon a 
        chassis, with the engine mounted in the front, midship or rear, 
        with a gross vehicle weight rating of more than 10,000 pounds, 
        designed for carrying more than ten persons.  The engine may be 
        behind the windshield and beside the driver's seat; it may be at 
        the rear of the bus, behind the rear wheels, or midship between 
        the front and rear axles.  The entrance door is ahead of the 
        front wheels.  A type D school bus has a maximum length of 45 
        feet.  
           (5) Type III school buses and type III Head Start buses are 
        restricted to passenger cars, station wagons, vans, and buses in 
        service after January 1, 1999, having an original a maximum 
        manufacturer's rated seating capacity of ten or fewer people, 
        including the driver, and a gross vehicle weight rating of 
        10,000 pounds or less.  In this subdivision, "gross vehicle 
        weight rating" means the value specified by the manufacturer as 
        the loaded weight of a single vehicle.  A "type III school bus" 
        and "type III Head Start bus" must not be outwardly equipped and 
        identified as a type A, B, C, or D school bus or type A, B, C, 
        or D Head Start bus.  A van or bus converted to a seating 
        capacity of ten or fewer and placed in service on or after 
        August 1, 1999, must have been originally manufactured to comply 
        with the passenger safety standards. 
           Sec. 41.  Minnesota Statutes 1998, section 169.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [WORKING ON HIGHWAY.] (a) The provisions of this 
        chapter shall not apply to persons, motor vehicles, and other 
        equipment while actually engaged in work upon the highway, 
        except as provided in paragraphs (b) and (c).  
           (b) This chapter shall apply to those persons and vehicles 
        when traveling to or from such work, except that persons 
        operating equipment owned, rented or hired by road authorities 
        shall be exempt from the width, height and length provisions of 
        sections 169.80 and 169.81 and shall be exempt from the weight 
        limitations of this chapter while engaged in snow or ice removal 
        and while engaged in flood control operations on behalf of the 
        state or a local governmental unit. 
           (c) Sections 169.121 to 169.129 and 169.444 apply to 
        persons while actually engaged in work upon the highway. 
           Sec. 42.  Minnesota Statutes 1998, section 171.3215, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CANCELLATION FOR DISQUALIFYING AND OTHER 
        OFFENSES.] Within ten days of receiving notice under section 
        631.40, subdivision 1a, or otherwise receiving notice for a 
        nonresident driver, that a school bus driver has been convicted 
        of a disqualifying offense, the commissioner shall permanently 
        cancel the school bus driver's endorsement on the offender's 
        driver's license and in the case of a nonresident, the driver's 
        privilege to operate a school bus in Minnesota.  A school bus 
        driver whose endorsement or privilege to operate a school bus in 
        Minnesota has been permanently canceled may not apply for 
        reinstatement.  Within ten days of receiving notice under 
        section 631.40, subdivision 1a, or otherwise receiving notice 
        for a nonresident driver, that a school bus driver has been 
        convicted of a gross misdemeanor, or a violation of section 
        169.121, 169.129, or a similar statute or ordinance from another 
        state, and within ten days of revoking a school bus driver's 
        license under section 169.123, the commissioner shall cancel the 
        school bus driver's endorsement on the offender's driver's 
        license or the nonresident's privilege to operate a school bus 
        in Minnesota for five years.  After five years, a school bus 
        driver may apply to the commissioner for reinstatement.  Even 
        after five years, cancellation of a school bus driver's 
        endorsement or a nonresident's privilege to operate a school bus 
        in Minnesota for a violation under section 169.121, 169.123, 
        169.129, or a similar statute or ordinance from another state, 
        shall remain in effect until the driver provides proof of 
        successful completion of an alcohol or controlled substance 
        treatment program.  For a first offense, proof of completion is 
        required only if treatment was ordered as part of a chemical use 
        assessment.  Within ten days of receiving notice under section 
        631.40, subdivision 1a, or otherwise receiving notice for a 
        nonresident driver, that a school bus driver has been convicted 
        of a fourth moving violation in the last three years, the 
        commissioner shall cancel the school bus driver's endorsement on 
        the offender's driver's license or the nonresident's privilege 
        to operate a school bus in Minnesota until one year has elapsed 
        since the last conviction.  A school bus driver who has no new 
        convictions after one year may apply for reinstatement.  Upon 
        canceling the offender's school bus driver's endorsement, the 
        commissioner shall immediately notify the licensed offender of 
        the cancellation in writing, by depositing in the United States 
        post office a notice addressed to the licensed offender at the 
        licensed offender's last known address, with postage prepaid 
        thereon. 
           Sec. 43.  Minnesota Statutes 1998, section 171.3215, 
        subdivision 4, is amended to read: 
           Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] (a) The 
        commissioner of public safety or the commissioner's designee, in 
        consultation with the division of driver and vehicle services, 
        may waive the permanent cancellation requirement of this section 
        171.3215 for a person convicted of a misdemeanor, a gross 
        misdemeanor, a nonfelony violation of chapter 152, or a felony 
        that is not a violent crime under section 609.1095.  
           (b) After notice to the requesting school district and 
        contract provider of school bus transportation, the commissioner 
        may waive the permanent cancellation requirement after ten years 
        have elapsed since the person was convicted of a violation of 
        section 609.582, subdivision 2, 3, or 4. 
           Sec. 44.  Minnesota Statutes 1998, section 181.101, is 
        amended to read: 
           181.101 [WAGES; HOW OFTEN PAID.] 
           Every employer must pay all wages earned by an employee at 
        least once every 30 31 days on a regular pay day designated in 
        advance by the employer regardless of whether the employee 
        requests payment at longer intervals.  Unless paid earlier, the 
        wages earned during the first half of the first 30-day 31-day 
        pay period become due on the first regular payday following the 
        first day of work.  If wages earned are not paid, the 
        commissioner of labor and industry or the commissioner's 
        representative may demand payment on behalf of an employee.  If 
        payment is not made within ten days of demand, the commissioner 
        may charge and collect the wages earned and a penalty in the 
        amount of the employee's average daily earnings at the rate 
        agreed upon in the contract of employment, not exceeding 15 days 
        in all, for each day beyond the ten-day limit following the 
        demand.  Money collected by the commissioner must be paid to the 
        employee concerned.  This subdivision section does not prevent 
        an employee from prosecuting a claim for wages.  This section 
        does not prevent a school district or other public school entity 
        from paying any wages earned by its employees during a school 
        year on regular pay days in the manner provided by an applicable 
        contract or collective bargaining agreement, or a personnel 
        policy adopted by the governing board.  For purposes of this 
        section, "employee" includes a person who performs agricultural 
        labor as defined in section 181.85, subdivision 2.  For purposes 
        of this section, wages are earned on the day an employee works. 
           Sec. 45.  Minnesota Statutes 1998, section 209.07, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [SCHOOL DISTRICT BOARD ELECTION; SURETY BOND 
        REQUIREMENTS.] If an election approving the issuance of bonds by 
        a school district is contested, the contestant shall file in the 
        district court a surety bond of at least $5,000 or a greater 
        amount determined necessary by the court to provide security for 
        costs of the contest to the school district, including any 
        additional costs that may be incurred by the school district if 
        the bond issue is delayed.  The court may waive the requirements 
        of this subdivision to the extent it finds that there is a 
        reasonable likelihood that the contestant will prevail and that 
        filing the bond would impose an undue hardship.  If the surety 
        bond is not filed within the time allowed by the court, the 
        contest shall be dismissed with prejudice. 
           Sec. 46.  Laws 1997, First Special Session chapter 4, 
        article 5, section 22, is amended to read: 
           Sec. 20.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
        STANDARDS.] 
           Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
        professional teaching standards through the national board for 
        professional teaching standards for fiscal year 1998 is 
        established to provide eligible teachers with the opportunity to 
        receive national board for professional teaching standards 
        certification and to reward teachers who have already received 
        such certification. 
           Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
        licensed K-12 school teacher employed in a state school.  To be 
        eligible for a grant, the teacher must have been employed as a 
        teacher for a minimum of five school years and demonstrate 
        either that the national board for professional teaching 
        standards has accepted the teacher as a candidate for board 
        certification or that the teacher already has received board 
        certification. 
           Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
        participate in the national board for professional teaching 
        standards certification process or to receive a reward for 
        already completing the board certification process, a teacher 
        must submit an application to the commissioner of children, 
        families, and learning in the form and manner the commissioner 
        establishes.  The applicant must demonstrate either that the 
        national board for professional teaching standards has accepted 
        the teacher as a candidate for board certification or that the 
        teacher already has received board certification.  The 
        commissioner shall consult with the state board of teaching when 
        reviewing the applications. 
           Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
        may award matching grants of $1,000 each to for eligible 
        teachers who provide a matching amount through collaboration 
        with either a school district, professional organization, or 
        both and are accepted as candidates for national board for 
        professional teaching standards certification.  Grant recipients 
        shall use the grant to participate in the certification 
        process.  The grant award shall be paid to the national board 
        for professional teaching standards in the teacher's name.  
        Within 24 months of receiving certification, a grant recipient 
        must satisfactorily complete one year of teaching service in a 
        state school the certification process or repay the state the 
        amount of the grant, except if the commissioner determines that 
        death or disability prevents the grant recipient from providing 
        the one year of teaching service. 
           (b) The commissioner may award grants to eligible teachers 
        who have earned national board for professional teaching 
        standards certification.  The amount of each grant shall not 
        exceed $1,000 and the commissioner shall establish criteria to 
        determine the actual amount of each grant.  Grant recipients 
        shall use the grant proceeds for educational purposes, including 
        purchasing instructional materials, equipment, or supplies and 
        realizing professional development opportunities.  
           Subd. 5.  [REGIONAL COORDINATORS.] The state shall provide 
        the equivalent of four full-time regional coordinators with two 
        located in the seven-county metropolitan area and two located in 
        greater Minnesota.  $25,000 per year, for the first two years 
        only, shall be provided to cover expenses of the regional 
        coordinators including, but not limited to, travel, meetings, 
        web page maintenance, and cost related to supporting candidate's 
        expenses.  After the first two years, individual school 
        districts must negotiate with the exclusive representative of 
        the teachers in the district for coordinator positions. 
           Sec. 47.  [ALTERNATIVE PATHWAYS FOR TEACHER PREPARATION.] 
           Subdivision 1.  [ESTABLISHMENT.] A program is established 
        to allow Minnesota school districts, in collaboration with 
        accredited teacher preparation institutions, to offer 
        undergraduate and graduate teacher preparation opportunities.  
        The program must provide teacher preparation opportunities that 
        effectively address the needs of different types of schools, 
        students, and teachers. 
           Subd. 2.  [ELIGIBILITY; PROGRAM USES; EMPLOYMENT 
        TERMS.] (a) An applicant under this program must be a school 
        district.  The school district must collaborate with an 
        accredited teacher preparation program and an exclusive 
        representative of the teachers in the district.  The program 
        must be used to assist in improving teacher preparation by 
        placing teacher education students in preschool, elementary, and 
        secondary classrooms or other education settings under the 
        supervision of a licensed classroom teacher. 
           (b) Each school district participating in this program may 
        select the teacher preparation model that best promotes 
        understanding the needs of each educational system or 
        institution.  For example: 
           (1) a public school educator may teach courses that assist 
        in preparing future educators or take professional development 
        courses; or 
           (2) a post-secondary teacher may teach courses at the 
        school district or mentor student teachers. 
           Participation is not limited to one school or institution 
        and may involve other participants, including parent/community 
        groups, teacher organizations, and business groups.  
        Participating schools and institutions are encouraged to develop 
        program components that engage nontraditional teacher 
        preparation students. 
           (c) Temporary placements made under this program must not 
        have a negative effect on participants' salaries, seniority, or 
        other benefits.  Specifically, temporary placements of teachers 
        may not displace or cause any reduction in the number of 
        nonovertime hours worked, wages, or benefits of a currently 
        employed teacher.  Notwithstanding Minnesota Statutes, sections 
        122A.16 and 123B.02, subdivision 14, a member of the staff of a 
        post-secondary institution may teach in a preschool, elementary 
        school, secondary school, or other education settings, or 
        perform a service agreed upon under this section for which a 
        license would otherwise be required without holding the 
        applicable license.  In addition, a licensed educator employed 
        by a school district may teach or perform a service, agreed upon 
        under this section, at a post-secondary institution without 
        meeting the applicable qualifications of the post-secondary 
        institution.  A district is not subject to Minnesota Statutes, 
        section 127A.43, as a result of entering into an agreement 
        according to this section that enables a post-secondary educator 
        to teach or provide services in the district.  All arrangements 
        and details regarding an exchange must be mutually agreed to by 
        each participating school district and post-secondary 
        institution before implementing the exchange and must not 
        violate any term or condition of the participating school 
        district's collective bargaining agreement. 
           (d) An educator who held a temporary position or an 
        exchanged position under this section must 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 
        must not be reduced because of time spent on an exchange or 
        temporary position under this section. 
           (e) An educator who is continued in or restored to a 
        position under paragraph (d): 
           (1) must 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. 3.  [APPLICATION PROCESS.] To participate in this 
        program, a school district must submit an application to the 
        commissioner of children, families, and learning in the form and 
        manner established by the commissioner.  The application must 
        describe how the applicant will improve teacher education by 
        providing undergraduate or graduate teacher preparation 
        opportunities in order to effectively address the needs of 
        different types of schools, students, and teachers, and how the 
        applicant will use technology to implement the program.  The 
        commissioner may require additional information from an 
        applicant. 
           Subd. 4.  [PROGRAM PARTICIPANTS; MONETARY AWARDS.] (a) When 
        selecting program participants, the commissioner must determine: 
           (1) whether an applicant has met the requirements of this 
        section; 
           (2) whether the location of a program is particularly 
        suitable for realizing the purpose of this section; 
           (3) the number of teacher candidates, teachers, and 
        students who would participate in the program; 
           (4) the ability of the applicant to demonstrate the 
        positive effect of the existing program on students enrolled in 
        a participating school district by using standardized test 
        scores, the rate at which students pass the state's reading, 
        math, and writing basic skills test, or other valid and reliable 
        assessment measures; 
           (5) whether public post-secondary institutions with board 
        of teaching approved teacher preparation programs and other 
        organizations representing parents, business interests, and 
        community interests are integral participants in the proposed 
        program; 
           (6) whether the program addresses the shortage of teachers 
        in any areas identified by the commissioner of children, 
        families, and learning; and 
           (7) the ability of the applicant to provide information 
        about the program to interested school districts and 
        post-secondary institutions. 
           (b) The commissioner may select applicants to participate 
        in this program for the 1999-2000 school year and later.  
        Participants must be located throughout the state.  The 
        commissioner must provide one-time start-up costs of up to 
        $20,000 per participating site. 
           Subd. 5.  [POST-SECONDARY INSTITUTION FUNDING.] 
        Notwithstanding other law to the contrary, and consistent with 
        subdivision 6, a post-secondary institution participating in 
        this program must provide the instructional costs of educating 
        students in teacher preparation programs and may charge the 
        students the costs of tuition. 
           Subd. 6.  [PARTICIPANTS' FEES.] A school district 
        participating in this program may charge reasonable fees to a 
        student in a teacher preparation program placed in a preschool, 
        elementary, or secondary classroom to receive teacher training. 
           Subd. 7.  [EVALUATION.] The commissioner must contract with 
        an independent qualified expert to evaluate the impact of the 
        program on teacher efficacy and student performance and present 
        a report to the commissioner and the education committees of the 
        legislature by February 15, 2005. 
           Sec. 48.  [BOARD OF TEACHING.] 
           The board of teaching must communicate with school 
        districts, including district human resources personnel, on the 
        procedures available to districts for expediting the hiring of 
        substitute teachers. 
           Sec. 49.  [TRANSITION.] 
           Notwithstanding Minnesota Statutes, section 15.0597, the 
        terms of persons who are members appointed by the governor 
        before the effective date of section 8, shall have their term 
        end on July 31 of the year following the last year of their 
        appointment. 
           Sec. 50.  [MODEL STATE POLICY ON STUDENT RECORDS.] 
           Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] By 
        December 1, 1999, the commissioner of administration shall 
        compile and make available a model policy that accurately 
        reflects state and federal data regulations regarding access to 
        and dissemination of educational data by schools and by other 
        government agencies who serve school-aged children, and access 
        by schools to data about students who have exhibited violent 
        behaviors.  The model policy shall include procedures and other 
        guidelines detailing allowable use and transfer of educational 
        data according to state and federal law. 
           Subd. 2.  [RECOMMENDATIONS TO THE LEGISLATURE.] By January 
        15, 2000, the commissioner, in consultation with representatives 
        from federal agencies, state agencies, county governments, 
        school districts, cities, and parents who have an interest in 
        educational and other applicable data, shall make 
        recommendations to the legislature regarding necessary 
        clarifications of state law and any enforcement mechanisms 
        identified as essential for the proper sharing of data. 
           Sec. 51.  [SCHOOL YEAR START DATE.] 
           Subdivision 1.  [GOODHUE.] Notwithstanding Minnesota 
        Statutes, section 120A.40, and Laws 1997, First Special Session 
        chapter 4, article 7, section 49, subdivision 1, for the 
        1999-2000 school year independent school district No. 253, 
        Goodhue, may begin the school year on August 30, 1999. 
           Subd. 2.  [MILACA.] Notwithstanding Minnesota Statutes 
        1996, section 126.12, subdivision 1, and Laws 1997, First 
        Special Session chapter 4, article 7, section 49, subdivision 1, 
        for the 1998-1999 school year only, independent school district 
        No. 912, Milaca, may begin the school year on August 24, 1998. 
           Subd. 3.  [WORTHINGTON.] Notwithstanding Minnesota 
        Statutes, section 120A.40, and Laws 1997, First Special Session 
        chapter 4, article 7, section 49, subdivision 1, for the 
        1999-2000 school year, independent school district No. 518, 
        Worthington, may begin the school year on August 23, 1999. 
           Sec. 52.  [STATE BOARD OF EDUCATION CHANGED TO COMMISSIONER 
        OF CHILDREN, FAMILIES, AND LEARNING; OTHER CHANGES.] 
           The provisions of Laws 1998, chapter 398, article 5, 
        section 55, and related sections apply except as provided under 
        this article. 
           Sec. 53.  [APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The following sums are appropriated from the general 
        fund to the department of children, families, and learning in 
        the fiscal years indicated. 
           Subd. 2.  [ALTERNATIVE PATHWAYS FOR TEACHER 
        PREPARATION.] For providing program participants under section 
        58 with start-up costs:  
               $100,000       .....     2000
           This appropriation is available until June 30, 2001. 
           The commissioner shall award a $20,000 grant to independent 
        school district No. 138, North Branch, if the district meets the 
        requirements of the program.* (The preceding subdivision was 
        vetoed by the governor.) 
           Subd. 3.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
        collaborative urban educator programs providing alternative 
        pathways to licensure: 
             $1,300,000     .....     2000
             $1,300,000     .....     2001
           $400,000 each year is for the Collaborative Urban Educators 
        Program at St. Thomas University; $400,000 each year is for 
        Hamline University and $500,000 each year is for the South East 
        Asia Teachers Program at Concordia University, St. Paul.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Subd. 4.  [PILLAGER REIMBURSEMENT.] For independent school 
        district No. 116, Pillager, for reimbursement of extraordinary 
        legal expenses due to a lawsuit with statewide implications: 
               $325,000     .....     2000 
           Subd. 5.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
        the school improvement pilot training program established in 
        Laws 1997, First Special Session chapter 4, article 7, section 
        47: 
               $500,000     .....     2000 
           This appropriation is available until June 30, 2001.  
           Subd. 6.  [PROFESSIONAL TEACHING STANDARDS.] For grant 
        
        awards for national board for professional teaching standards 
        certification and for regional coordinators to counsel and 
        assist teacher candidates for the certification: 
               $400,000     .....     2000 
           This appropriation is available until June 30, 2001.  This 
        is a one-time appropriation. 
           Sec. 54.  [REPEALER.] 
           Minnesota Statutes 1998, sections 127A.42, subdivision 8; 
        127A.60, subdivisions 2, 3, and 4; 127A.61; 127A.62, subdivision 
        2; 127A.64; and 127A.66, subdivision 1, are repealed effective 
        December 31, 1999. 
           Sec. 55.  [EFFECTIVE DATES.] 
           Sections 1; 7, paragraphs (c) and (e); 27; 28; 37; 44; 47, 
        and 49 are effective the day following final enactment.  
        Notwithstanding any law to the contrary, section 2 is effective 
        for the 1999-2000 school year and thereafter.  Sections 3, 9 to 
        12, 21, 26, 29, 30, 32 to 36, and 52 are effective December 31, 
        1999.  Section 38 is effective for the 1999-2000 school year and 
        thereafter.  Section 51, subdivision 2, is effective retroactive 
        to July 1, 1998. 
                                   ARTICLE 10 
                                 STATE AGENCIES 
           Section 1.  Minnesota Statutes 1998, section 125A.64, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [EXEMPTION TO SEPTEMBER 1 SCHOOL START 
        RESTRICTION.] Notwithstanding Minnesota Statutes, section 
        120A.40, subdivision 1, the board of the Minnesota state 
        academies for the deaf and blind may begin the school year any 
        day prior to September 1. 
           Sec. 2.  Minnesota Statutes 1998, section 129C.10, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [EXEMPTION TO SEPTEMBER 1 SCHOOL START 
        RESTRICTION.] Notwithstanding Minnesota Statutes, section 
        120A.40, subdivision 1, the Lola and Rudy Perpich Minnesota 
        center for arts education may begin the school year any day 
        prior to September 1. 
           Sec. 3.  Minnesota Statutes 1998, section 626.556, 
        subdivision 10b, is amended to read: 
           Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
        FACILITY.] (a) This section applies to the commissioner of 
        children, families, and learning.  The commissioner of the 
        agency responsible for assessing or investigating the report 
        shall immediately investigate if the report alleges that: 
           (1) a child who is in the care of a facility as defined in 
        subdivision 2 is neglected, physically abused, or sexually 
        abused by an individual in that facility, or has been so 
        neglected or abused by an individual in that facility within the 
        three years preceding the report; or 
           (2) a child was neglected, physically abused, or sexually 
        abused by an individual in a facility defined in subdivision 2, 
        while in the care of that facility within the three years 
        preceding the report.  
           The commissioner shall arrange for the transmittal to the 
        commissioner of reports received by local agencies and may 
        delegate to a local welfare agency the duty to investigate 
        reports.  In conducting an investigation under this section, the 
        commissioner has the powers and duties specified for local 
        welfare agencies under this section.  The commissioner or local 
        welfare agency may interview any children who are or have been 
        in the care of a facility under investigation and their parents, 
        guardians, or legal custodians. 
           (b) Prior to any interview, the commissioner or local 
        welfare agency shall notify the parent, guardian, or legal 
        custodian of a child who will be interviewed in the manner 
        provided for in subdivision 10d, paragraph (a).  If reasonable 
        efforts to reach the parent, guardian, or legal custodian of a 
        child in an out-of-home placement have failed, the child may be 
        interviewed if there is reason to believe the interview is 
        necessary to protect the child or other children in the 
        facility.  The commissioner or local agency must provide the 
        information required in this subdivision to the parent, 
        guardian, or legal custodian of a child interviewed without 
        parental notification as soon as possible after the interview.  
        When the investigation is completed, any parent, guardian, or 
        legal custodian notified under this subdivision shall receive 
        the written memorandum provided for in subdivision 10d, 
        paragraph (c). 
           (c) In conducting investigations under this subdivision the 
        commissioner or local welfare agency shall obtain access to 
        information consistent with subdivision 10, paragraphs (h), (i), 
        and (j). 
           (d) Except for foster care and family child care, the 
        commissioner has the primary responsibility for the 
        investigations and notifications required under subdivisions 10d 
        and 10f for reports that allege maltreatment related to the care 
        provided by or in facilities licensed by the commissioner.  The 
        commissioner may request assistance from the local social 
        service agency. 
           Sec. 4.  [TRANSFER OF PROGRAMS.] 
           The powers and duties of the department of children, 
        families, and learning with respect to drug policy and violence 
        prevention under Minnesota Statutes 1998, sections 119A.25, 
        119A.26, 119A.27, 119A.28, 119A.29, 119A.31, 119A.32, 119A.33, 
        and 119A.34, are transferred to the department of public safety 
        under Minnesota Statutes, section 15.039. 
           Sec. 5.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
        AND LEARNING.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sums indicated in this section are appropriated 
        from the general fund unless otherwise indicated to the 
        department of children, families, and learning for the fiscal 
        years designated. 
           Subd. 2.  [TEACHING AND LEARNING PROGRAM.] (a) For the 
        teaching and learning program in the department of children, 
        families, and learning: 
             $9,979,000     .....     2000 
             $9,926,000     .....     2001 
           (b) Any balance the first year does not cancel but is 
        available in the second year. 
           (c) $21,000 each year is from the trunk highway fund. 
           (d) $673,000 in 2000 and $678,000 in 2001 is for the board 
        of teaching. 
           (e) Notwithstanding Minnesota Statutes, section 15.53, 
        subdivision 2, the commissioner of children, families, and 
        learning may contract with a school district for a period no 
        longer than five consecutive years to work in the development or 
        implementation of the graduation rule.  The commissioner may 
        contract for services and expertise as necessary.  The contracts 
        are not subject to Minnesota Statutes, section 16B.06. 
           Subd. 3.  [LIFEWORK DEVELOPMENT PROGRAM.] For the lifework 
        development program in the department of children, families, and 
        learning: 
             $1,162,000     .....     2000 
             $1,183,000     .....     2001 
           Any balance the first year does not cancel but is available 
        in the second year. 
           Subd. 4.  [MANAGEMENT AND SUPPORT SERVICES PROGRAM.] (a) 
        For the management and support services program in the 
        department of children, families, and learning: 
            $16,987,000     .....     2000 
            $14,421,000     .....     2001 
           (b) Any balance the first year does not cancel but is 
        available in the second year. 
           (c) $165,000 in 2000 is for the state board of education.  
        Any functions of the state board of education that are not 
        specifically transferred to another agency are transferred to 
        the department of children, families, and learning under 
        Minnesota Statutes, section 15.039.  For the position that is 
        classified, upon transferring the responsibilities, the current 
        incumbent is appointed to the classified position without exam 
        or probationary period. 
           (d) $2,000,000 in 2000 is for litigation costs and may only 
        be used for those purposes.  This is a one-time appropriation. 
           Subd. 5.  [OFFICE OF COMMUNITY SERVICES PROGRAM.] For the 
        office of community services program in the department of 
        children, families, and learning: 
             $4,188,000     .....     2000 
             $4,255,000     .....     2001 
           Any balance the first year does not cancel but is available 
        the second year. 
           Sec. 6.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
        CENTER FOR ARTS EDUCATION.] 
           The sums indicated in this section are appropriated from 
        the general fund to the center for arts education for the fiscal 
        years designated: 
             $7,239,000     .....     2000
             $7,400,000     .....     2001
           Of each year's appropriation, $154,000 is to fund artist 
        and arts organization participation in the education residency 
        and education technology projects, $75,000 is for school support 
        for the residency project, $121,000 is for further development 
        of the partners:  arts and school for students (PASS) program, 
        including pilots, and $220,000 is to fund the center for arts 
        education base for asset preservation and facility repair.  The 
        guidelines for the education residency project and the pass 
        program shall be developed and defined by the center for arts 
        education in cooperation with the Minnesota arts board.  The 
        Minnesota arts board shall participate in the review and 
        allocation process.  The center for arts education and the 
        Minnesota arts board shall cooperate to fund these projects. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 7.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
           (a) The sums indicated in this section are appropriated 
        from the general fund to the Minnesota state academies for the 
        deaf and the blind for the fiscal years designated:  
            $10,039,000    .....     2000
            $10,258,000    .....     2001 
           (b) Any balance in the first year does not cancel but is 
        available in the second year. 
           (c) $75,000 each year is for asset preservation and 
        facility repair.  
           (d) $15,000 each year is for the cost of holding board 
        meetings in Faribault. 
           Sec. 8.  [REVISOR INSTRUCTION.] 
           (a) In the next and subsequent editions of Minnesota 
        Statutes and Minnesota Rules, the revisor shall change all 
        references of the "Lola and Rudy Perpich Minnesota center for 
        arts education" to the "Perpich center for arts education." 
           (b) In the next and subsequent editions of Minnesota 
        Statutes the revisor shall renumber each section in column A 
        with the corresponding number in column B.  The revisor shall 
        correct all cross-references to be consistent with the 
        renumbering. 
                   Column A               Column B
                   119A.25                299A.291
                   119A.26                299A.292
                   119A.27                299A.293
                   119A.28                299A.294
                   119A.29                299A.295
                   119A.31                299A.296
                   119A.32                299A.297
                   119A.33                299A.298
                   119A.34                299A.299
           Sec. 9.  [REPEALER.] 
           Minnesota Statutes 1998, section 119A.04, subdivision 5, is 
        repealed. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Section 2 is effective the day following final enactment. 
           Presented to the governor May 24, 1999 
           Signed by the governor May 25, 1999, 4:05 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569