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                         Laws of Minnesota 1991 

                        CHAPTER 265-H.F.No. 700 
           An act relating to education; providing for general 
          education revenue, transportation, special programs, 
          community services, facilities and equipment, 
          education organization and cooperation, other aids and 
          levies, other education programs, miscellaneous 
          education matters, libraries, state education 
          agencies, maximum effort school loan bonds; 
          authorizing the issuance of bonds; appropriating 
          money; amending Minnesota Statutes 1990, sections 
          120.062, subdivisions 8a and 9; 120.08, subdivision 3; 
          120.101, by adding a subdivision; 120.17, subdivisions 
          3b, 7a, and 11a; 120.181; 120.59; 120.60; 120.61; 
          120.62; 120.63; 120.64; 120.65; 120.66; 120.67; 
          121.11, subdivision 12; 121.14; 121.148, subdivision 
          1; 121.15, subdivisions 7 and 9; 121.155; 121.165; 
          121.49, subdivision 1; 121.585, subdivision 3; 
          121.608; 121.609, subdivisions 2 and 3; 121.612, 
          subdivision 9; 121.88, subdivisions 9 and 10; 121.882, 
          subdivisions 2, 6, and by adding a subdivision; 
          121.904, subdivisions 4a and 4e; 121.912, by adding 
          subdivisions; 121.917, subdivision 3; 121.931, 
          subdivisions 6a, 7, and 8; 121.932, subdivisions 2, 3, 
          and 5; 121.933, subdivision 1; 121.934, subdivision 7; 
          121.935, subdivisions 1, 4, 6, and by adding 
          subdivisions; 121.936, subdivisions 1, 2, and 4; 
          121.937, subdivision 1; 122.22, subdivisions 7a and 9; 
          122.23, subdivisions 2 and 3; 122.241, subdivisions 1 
          and 2; 122.242, subdivision 9; 122.243, subdivision 2; 
          122.247, subdivision 3, and by adding a subdivision; 
          122.41; 122.531, by adding subdivisions; 122.535, 
          subdivision 6; 122.541, subdivision 7; 122.91, 
          subdivision 5; 122.94, subdivision 6, and by adding a 
          subdivision; 123.34, subdivisions 9 and 10; 123.35, by 
          adding subdivisions; 123.351, subdivision 8; 123.3514, 
          subdivisions 3, 4, 6, 6b, 8, and by adding a 
          subdivision; 123.38, subdivision 2b; 123.58, by adding 
          subdivisions; 123.702; 123.744; 123.951; 124.14, 
          subdivision 7; 124.17, subdivisions 1, 1b, and by 
          adding subdivisions; 124.19, subdivisions 1, 7, and by 
          adding a subdivision; 124.195, subdivisions 9 and 11; 
          124.223, subdivisions 1 and 8; 124.225, subdivisions 
          1, 3a, 7a, 7b, 7d, 8a, 8k, 10, and by adding a 
          subdivision; 124.26, subdivisions 1c and 2; 124.261; 
          124.2711; 124.2713, subdivisions 1, 3, 5, 6, and 9; 
          124.2721, subdivisions 2, 3, and by adding 
          subdivisions; 124.2725, subdivisions 4, 5, 6, 8, and 
          10; 124.273, subdivision 1b; 124.311, subdivision 4; 
          124.32, subdivisions 1b and 10; 124.332, subdivisions 
          1 and 2; 124.493, by adding a subdivision; 124.573, 
          subdivisions 2b and 3a; 124.574, subdivision 2b; 
          124.575, by adding subdivisions; 124.646; 124.6472, 
          subdivision 1; 124.83, subdivision 4; 124.86; 124A.02, 
          subdivisions 16 and 23; 124A.03; 124A.04; 124A.22, 
          subdivisions 2, 3, 4, 5, 8, 9, and by adding 
          subdivisions; 124A.23, subdivisions 1, 4, and 5; 
          124A.24; 124A.26, subdivision 1; 124A.29, subdivision 
          1; 124A.30; 124B.03, subdivision 2; 124C.03, 
          subdivisions 2 and 16; 125.09, subdivision 4; 125.12, 
          subdivision 3, and by adding subdivisions; 125.17, 
          subdivision 2, and by adding subdivisions; 125.185, 
          subdivisions 4 and 4a; 125.231; 126.113, subdivisions 
          1 and 2; 126.12, subdivision 1; 126.22, subdivisions 
          2, 3, 4, 8, and by adding subdivisions; 126.23; 
          126.266, subdivision 2; 126.51, subdivision 1a; 
          126.661, subdivision 5, and by adding a subdivision; 
          126.663, subdivisions 2 and 3; 126.665; 126.666, 
          subdivision 2, and by adding subdivisions; 126.67, 
          subdivision 2b; 126.70, subdivisions 1, 2, and 2a; 
          128A.02, subdivision 4; 128A.05, subdivision 3; 
          128B.03, subdivisions 4, 5, 7, and by adding a 
          subdivision; 128B.04; 128B.05, subdivisions 2 and 3; 
          128B.06, subdivision 1; 128B.08; 128B.09; 128B.10, 
          subdivisions 1 and 2; 128C.01, by adding a 
          subdivision; 128C.12, subdivision 3; 128C.20; 129C.10, 
          subdivisions 3, 3a, 4a, and 6; 134.001, subdivisions 2 
          and 3; 134.31, subdivision 4; 134.35; 134.351, 
          subdivision 7; 136D.22, by adding a subdivision; 
          136D.29; 136D.71; 136D.72, subdivision 1; 136D.76, 
          subdivision 2; 136D.82, by adding a subdivision; 
          136D.90; 141.25, subdivision 8; 141.26, subdivision 5; 
          145.926; 171.29, subdivision 2; 203B.085; 214.10, by 
          adding a subdivision; 245A.03, subdivision 2; 260.015, 
          subdivision 19; 268.08, subdivision 6; 272.02, 
          subdivision 8; 275.065, subdivisions 3, 5a, and 6; 
          275.125, subdivisions 4, 5, 5b, 5c, 11d, and by adding 
          a subdivision; 279.03, subdivision 1a; 281.17; 298.28, 
          subdivision 4; 364.09; 475.61, subdivision 3; and 
          631.40; Laws 1989, chapter 329, article 4, section 20; 
          and article 6, section 53, subdivision 6, as amended; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 3; 120; 121; 122; 123; 124; 124C; 125; 127; 
          128B; 129C; 134; 136D; 171; 373; and 473; repealing 
          Minnesota Statutes 1990, sections 3.865; 3.866; 
          120.011; 120.104; 120.105; 121.111; 121.15, 
          subdivision 10; 121.91, subdivision 7; 121.932, 
          subdivision 1; 121.933, subdivision 2; 121.935, 
          subdivisions 3 and 5; 121.936, subdivision 5; 121.937, 
          subdivision 2; 122.43, subdivision 1; 122.531, 
          subdivision 5; 122.945, subdivision 4; 123.3514, 
          subdivisions 6 and 6b; 123.706; 123.707; 123.73; 
          123.744; 124.225, subdivisions 3, 4b, 7c, 8b, 8i, and 
          8j; 124.252; 124.26, subdivisions 7 and 8; 124.2713, 
          subdivision 4; 124.2721, subdivision 3a; 124.48, 
          subdivision 2; 124.493, subdivision 2; 124.535, 
          subdivision 3a; 124A.02, subdivision 19; 124C.01, 
          subdivision 2; 124C.02; 124C.41, subdivisions 6 and 7; 
          125.231, subdivision 6; 128B.01; 128B.03, subdivisions 
          3 and 8; 128B.07; 128B.10, subdivision 3; 128C.12, 
          subdivision 2; 129C.10, subdivision 5; 135A.10, 
          subdivision 2; 136A.044; 136D.27, subdivision 1; 
          136D.28; 136D.30; 136D.74, subdivision 2; 136D.87, 
          subdivision 1; 136D.89; 136D.91; and 275.125, 
          subdivisions 8b, 8c, and 8d; Laws 1989, chapter 329, 
          article 12, section 8. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                        GENERAL EDUCATION REVENUE
    Section 1.  Minnesota Statutes 1990, section 121.904, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to sections 124.2721, subdivision 3; 
124.575, subdivision 3; and 275.125, subdivision 9a; and Laws 
1976, chapter 20, section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the June and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, which are for the fiscal year 
payable in that fiscal year plus 31.0 37.0 percent of the amount 
of the levy certified in the prior calendar year according to 
section 124A.03, subdivision 2, plus or minus auditor's 
adjustments, not including levy portions that are assumed by the 
state; or 
    (3) 31.0 37.0 percent of the amount of the levy certified 
in the prior calendar year, plus or minus auditor's adjustments, 
not including levy portions that are assumed by the state, which 
remains after subtracting, by fund, the amounts levied for the 
following purposes:  
      (i) reducing or eliminating projected deficits in the 
reserved fund balance accounts for unemployment insurance and 
bus purchases; 
     (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, chapter 20, section 4; and 
     (iii) retirement and severance pay pursuant to sections 
124.2725, subdivision 15, 124.4945, and 275.125, subdivisions 4 
and 6a, and Laws 1975, chapter 261, section 4; and 
     (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, amounts 
levied for down payments under section 124.82, subdivision 3, 
and amounts levied pursuant to section 275.125, subdivision 14a. 
     (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
     (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable. 
    Sec. 2.  Minnesota Statutes 1990, section 121.904, 
subdivision 4e, is amended to read: 
    Subd. 4e.  [COOPERATION LEVY RECOGNITION.] (a) A 
cooperative district is a district or cooperative that receives 
revenue according to section 124.2721 or 124.575.  
    (b) In June of each year, the cooperative district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, that are for the fiscal year 
payable in that fiscal year; or 
    (2) 31.0 37.0 percent of the difference between 
    (i) the sum of the amount of levies certified in the prior 
year according to sections 124.2721, subdivision 3, and 124.575, 
subdivision 3; and 
    (ii) the amount of transition aid paid to the cooperative 
unit according to section 273.1392 for the fiscal year to which 
the levy is attributable.  
    Sec. 3.  Minnesota Statutes 1990, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [SUPPLEMENTAL REVENUE.] (a) For purposes of 
computing the supplemental revenue and the minimum allowance 
under section 124A.22, subdivision 9, paragraph (b), in the case 
of a consolidation, the newly created district's 1991-1992 
revenue and 1991-1992 actual pupil units are the sum of the 
1991-1992 revenue and 1991-1992 pupil units, respectively, of 
the former districts comprising the new district. 
    (b) For purposes of computing the supplemental revenue and 
the minimum allowance under section 124A.22, subdivision 9, 
paragraph (b), in the case of a dissolution and attachment, a 
district's 1991-1992 revenue is the revenue of the existing 
district plus the result of the following calculation: 
    (1) the 1991-1992 revenue of the dissolved district divided 
by 
    (2) the dissolved district's 1991-1992 actual pupil units, 
multiplied by 
    (3) the pupil units of the dissolved district in the most 
recent year before the dissolution allocated to the newly 
created or enlarged district. 
    (c) In the case of a dissolution and attachment, the 
department of education shall allocate the pupil units of the 
dissolved district to the newly enlarged district based on the 
allocation of the property on which the pupils generating the 
pupil units reside. 
    Sec. 4.  Minnesota Statutes 1990, section 124.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
pupil in average daily membership shall be counted according to 
this subdivision.  
    (a) A handicapped prekindergarten pupil who is enrolled for 
the entire fiscal year in a program approved by the commissioner 
and has an individual education plan that requires up to 437 
hours of assessment and education services in the fiscal year is 
counted as one-half of a pupil unit.  If the plan requires more 
than 437 hours of assessment and education services, the pupil 
is counted as the ratio of the number of hours of assessment and 
education service to 875, but not more than one. 
    (b) A handicapped prekindergarten pupil who is enrolled for 
less than the entire fiscal year in a program approved by the 
commissioner is counted as the greater of: 
    (1) one-half times the ratio of the number of instructional 
days from the date the pupil is enrolled to the date the pupil 
withdraws to the number of instructional days in the school 
year,; or 
    (2) the ratio of the number of hours of assessment and 
education service required in the fiscal year by the pupil's 
individual education program plan to 875, but not more than one. 
    (c) A prekindergarten pupil who is assessed but determined 
not to be handicapped is counted as the ratio of the number of 
hours of assessment service to 875.  
    (d) A handicapped kindergarten pupil who is enrolled in a 
program approved by the commissioner is counted as the ratio of 
the number of hours of assessment and education services 
required in the fiscal year by the pupil's individual education 
program plan to 875, but not more than one. 
    (e) A kindergarten pupil who is not included in paragraph 
(d) is counted as one-half of a pupil unit. 
    (f) A pupil who is in any of grades 1 to 6 is counted as 
one pupil unit. 
    (g) A pupil who is in any of grades 7 to 12 is counted as 
1.35 1.3 pupil units.  
    Sec. 5.  Minnesota Statutes 1990, section 124.17, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [FISCAL YEAR 1992 AFDC PUPIL UNITS.] AFDC pupil 
units for fiscal year 1992 shall be computed according to this 
subdivision.  In a district in which the number of pupils from 
families receiving aid to families with dependent children on 
October 1 of the previous school year according to section 7 
equals six percent or more of the actual pupil units in the 
district for the current school year, as computed in subdivision 
1, each such pupil shall be counted as an additional one-tenth 
of a pupil unit for each percent of concentration over five 
percent of such pupils in the district.  The percent of 
concentration shall be rounded down to the nearest whole 
percent.  In a district in which the percent of concentration is 
less than six, additional pupil units may not be counted for 
such pupils.  A pupil may not be counted as more than .6 
additional pupil unit under this subdivision.  The weighting in 
this subdivision is in addition to the weighting provided in 
subdivision 1.  
    Sec. 6.  Minnesota Statutes 1990, section 124.17, is 
amended by adding a subdivision to read: 
    Subd. 1d.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
year 1993 and thereafter must be computed according to this 
subdivision.  
    (a) The AFDC concentration percentage for a district equals 
the product of 100 times the ratio of:  
    (1) the number of pupils enrolled in the district from 
families receiving aid to families with dependent children 
according to section 7; to 
    (2) the number of pupils in average daily membership 
according to section 7 enrolled in the district. 
    (b) The AFDC pupil weighting factor for a district equals 
the lesser of one or the quotient obtained by dividing the 
district's AFDC concentration percentage by 11.5.  
    (c) The AFDC pupil units for a district for fiscal year 
1993 and thereafter equals the product of:  
    (1) the number of pupils enrolled in the district from 
families receiving aid to families with dependent children 
according to section 7; times 
    (2) the AFDC pupil weighting factor for the district; times 
    (3) .65. 
    Sec. 7.  Minnesota Statutes 1990, section 124.17, is 
amended by adding a subdivision to read: 
    Subd. 1e.  [AFDC PUPIL COUNTS.] AFDC pupil counts and 
average daily membership for sections 5 and 6 shall be 
determined according to this subdivision: 
    (a) For districts where the number of pupils from families 
receiving aid to families with dependent children has increased 
over the preceding year for each of the two previous years, the 
number of pupils enrolled in the district from families 
receiving aid to families with dependent children shall be those 
counted on October 1 of the previous school year.  The average 
daily membership used shall be from the previous school year. 
    (b) For districts that do not meet the requirement of 
paragraph (a), the number of pupils enrolled in the district 
from families receiving aid to families with dependent children 
shall be the average number of pupils on October 1 of the second 
previous school year and October 1 of the previous school year.  
The average daily membership used shall be the average number 
enrolled in the previous school year and the second previous 
school year. 
    Sec. 8.  Minnesota Statutes 1990, section 124A.02, 
subdivision 16, is amended to read: 
    Subd. 16.  [PUPIL UNITS, AFDC.] "AFDC pupil units" for 
fiscal year 1992 means pupil units identified in section 124.17, 
subdivision 1b. 
    "AFDC pupil units" for fiscal year 1993 and thereafter 
means pupil units identified in section 6.  
    Sec. 9.  Minnesota Statutes 1990, section 124A.02, 
subdivision 23, is amended to read: 
    Subd. 23.  [TRAINING AND EXPERIENCE INDEX.] "Training and 
experience index" means a measure of a district's teacher 
training and experience relative to the education and experience 
of teachers in the state.  The measure shall be determined 
pursuant to section 124A.04 and according to a method published 
in the Minnesota Code of Administrative Rules.  The published 
method shall include the data used and a reasonably detailed 
description of the steps in the method.  The method shall not be 
subject to the provisions of chapter 14.  At least biennially, 
the department shall recompute the index using complete new data.
    Sec. 10.  Minnesota Statutes 1990, section 124A.03, is 
amended to read: 
    124A.03 [REFERENDUM LEVY REVENUE.] 
    Subd. 1b.  [REFERENDUM ALLOWANCE.] A district's referendum 
revenue allowance equals the referendum revenue authority for 
that year divided by its actual pupil units for that school year.
    Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] (a) 
Notwithstanding subdivision 1b, a district's referendum 
allowance must not exceed the greater of:  
    (1) the district's referendum allowance for fiscal year 
1992; or 
    (2) 35 percent of the formula allowance for that fiscal 
year. 
    Subd. 1d.  [SPARSITY EXCEPTION.] A district that qualifies 
for sparsity revenue under section 124A.22 is not subject to a 
referendum allowance limit. 
    Subd. 1e.  [TOTAL REFERENDUM REVENUE.] The total referendum 
revenue for each district equals the district's referendum 
allowance times the actual pupil units for the school year. 
    Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
referendum equalization revenue equals ten percent of the 
formula allowance times the district's actual pupil units for 
that year. 
    Referendum equalization revenue must not exceed a 
district's referendum revenue allowance times the district's 
actual pupil units for that year. 
    Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] A district's 
referendum equalization levy equals the district's referendum 
equalization revenue times the lesser of one or the ratio of the 
district's adjusted net tax capacity per actual pupil unit to 50 
percent of the equalizing factor as defined in section 124A.02, 
subdivision 8. 
    Subd. 1h.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
referendum equalization aid equals the difference between its 
referendum equalization revenue and levy. 
    (b) For fiscal year 1993, a district's referendum 
equalization aid is equal to one-third of the amount calculated 
in clause (a). 
    (c) For fiscal year 1994, a district's referendum 
equalization aid is equal to two-thirds of the amount calculated 
in clause (a). 
    (d) If a district's actual levy for referendum equalization 
revenue is less than its maximum levy limit, aid shall be 
proportionately reduced. 
    Subd. 1i.  [UNEQUALIZED REFERENDUM LEVY.] Each year, a 
district may levy an amount equal to the difference between its 
total referendum revenue according to subdivision 1f and its 
equalized referendum aid and levy according to subdivisions 1g 
and 1h. 
    Subd. 2.  [REFERENDUM LEVY REVENUE.] (a) The levy revenue 
authorized by section 124A.23 124A.22, subdivision 2 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 school board or shall be called by the school 
board upon written petition of qualified voters of the 
district.  The referendum must be held on the first Tuesday 
after the first Monday in November.  The ballot shall state the 
maximum amount of the increased levy as a percentage of net tax 
capacity, the amount that will be raised by that local tax 
rate revenue per actual pupil unit, the estimated net tax 
capacity rate in the first year it is to be levied, and that the 
local tax rate revenue shall be used to finance school 
operations.  The ballot shall designate the specific number of 
years, not to exceed five, for which the referendum 
authorization shall apply.  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 levy revenue proposed by 
(petition to) the board of ........., School District No. .., be 
approved?"  
    If approved, the an amount provided by equal to the 
approved local tax rate applied to the net tax capacity revenue 
per actual pupil unit times the actual pupil units for the 
school year preceding 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 school board shall prepare and deliver by first 
class mail at least 15 days but no more than 30 days prior to 
the day of the referendum to each taxpayer at the address listed 
on the school district's current year's assessment roll, a 
notice of the referendum and the proposed levy revenue increase. 
For the purpose of giving mailed notice under this subdivision, 
owners shall be those shown to be owners on the records of the 
county auditor or, in any county where tax statements are mailed 
by the county treasurer, on the records of the county 
treasurer.  Every property owner whose name does not appear on 
the records of the county auditor or the county treasurer shall 
be deemed to have waived this mailed notice unless the owner has 
requested in writing that the county auditor or county 
treasurer, as the case may be, include the name on the records 
for this purpose.  The notice must project the anticipated 
amount of 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 must include the following statement:  "In 1989 
the legislature reduced property taxes for education by 
increasing the state share of funding for education.  However, 
state aid for cities and townships was reduced by a 
corresponding amount.  As a result, property taxes for cities 
and townships may increase.  "Passage of this referendum will 
result in an increase in your property taxes." 
    (c) A referendum on the question of revoking or reducing 
the increased levy revenue amount authorized pursuant to 
paragraph (a) may be called by the school board and shall be 
called by the school board upon the written petition of 
qualified voters of the district.  A levy A referendum to revoke 
or reduce the levy amount must be based upon the dollar amount, 
local tax rate, or amount per actual 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 made 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 a levy referendum revenue for any specific year 
and for years thereafter. 
    (d) A petition authorized by paragraph (a) or (c) shall be 
effective if signed by a number of qualified voters in excess of 
15 percent of the registered voters of the school district on 
the day the petition is filed with the school board.  A 
referendum invoked by petition shall 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 prior to the day of the referendum, 
the district shall submit a copy of the notice required under 
paragraph (b) to the commissioner of education.  Within 15 days 
after the results of the referendum have been certified by the 
school board, or in the case of a recount, the certification of 
the results of the recount by the canvassing board, the district 
shall notify the commissioner of education of the results of the 
referendum. 
    Sec. 11.  Minnesota Statutes 1990, section 124A.04, is 
amended to read: 
    124A.04 [TRAINING AND EXPERIENCE INDEX.] 
    Subdivision 1.  [FISCAL YEAR 1992.] The training and 
experience index for fiscal year 1992 shall be constructed in 
the following manner:  
    (a) The department shall construct a matrix which 
classifies teachers by the extent of training received in 
accredited institutions of higher education, and by the years of 
experience which the district takes districts take into account 
in determining each teacher's salary teacher salaries.  
    (b) For all teachers in the state, the average salary per 
full-time-equivalent shall be computed for each cell of the 
matrix.  
    (c) For each cell of the matrix, the ratio of the average 
salary in that cell to the average salary in the cell for 
teachers with no prior years of experience and only a bachelor's 
degree shall be computed.  The department shall use statistical 
methods to ensure continuously increasing ratios as cells are 
higher in training or experience.  
    (d) The index for each district shall be equal to the 
weighted average of the ratios assigned to the 
full-time-equivalent teachers in each district.  
    Subd. 2.  [1993 AND LATER.] The training and experience 
index for fiscal year 1993 and later fiscal years must be 
constructed in the following manner:  
    (a) The department shall construct a matrix that classifies 
teachers by the extent of training received in accredited 
institutions of higher education and by the years of experience 
that districts take into account in determining teacher salaries.
    (b) The average salary for each cell of the matrix must be 
computed as follows using data from the second year of the 
previous biennium:  
    (1) For each school district, multiply the salary paid to 
full-time equivalent teachers with that combination of training 
and experience according to the district's teacher salary 
schedule by the number of actual pupil units in that district.  
    (2) Add the amounts computed in clause (1) for all 
districts in the state and divide the resulting sum by the total 
number of actual pupil units in all districts in the state that 
employ teachers.  
    (c) For each cell in the matrix, compute the ratio of the 
average salary in that cell to the average salary for all 
teachers in the state.  Cells of the matrix in lanes beyond the 
master's degree plus 30 credits lane must receive the same ratio 
as the cells in the master's degree plus 30 credits lane. 
    (d) The index for each district that employs teachers 
equals the sum of the ratios for each teacher in that district 
divided by the number of teachers in that district.  The index 
for a district that employs no teachers is zero. 
    Sec. 12.  Minnesota Statutes 1990, section 124A.22, 
subdivision 2, is amended to read: 
    Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
district equals the formula allowance times the actual pupil 
units for the school year.  The formula allowance is $2,838 for 
fiscal year 1990.  The formula allowance for 1992 and subsequent 
fiscal years is $2,953 $3,050.  
    Sec. 13.  Minnesota Statutes 1990, section 124A.22, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] (a) For fiscal 
year 1992, the compensatory education revenue for each district 
equals the formula allowance times the AFDC pupil units counted 
according to section 124.17, subdivision 1b, for the school year.
    (b) For fiscal year 1993 and thereafter, the maximum 
compensatory education revenue for each district equals the 
formula allowance times the AFDC pupil units computed according 
to section 124.17, subdivision 1d. 
    (c) For fiscal year 1993 and thereafter, the previous 
formula compensatory education revenue for each district equals 
the formula allowance times the AFDC pupil units computed 
according to section 124.17, subdivision 1b.  
    (d) For fiscal year 1993, the compensatory education 
revenue for each district equals the district's previous formula 
compensatory revenue plus one-fourth of the difference between 
the district's maximum compensatory education revenue and the 
district's previous formula compensatory education revenue.  
    (e) For fiscal year 1994, the compensatory education 
revenue for each district equals the district's previous formula 
compensatory education revenue plus one-half of the difference 
between the district's maximum compensatory education revenue 
and the district's previous formula compensatory education 
revenue.  
    (f) For fiscal year 1995, the compensatory education 
revenue for each district equals the district's previous formula 
compensatory education revenue plus three-fourths of the 
difference between the district's maximum compensatory education 
revenue and the district's previous formula compensatory 
education revenue.  
    (g) For fiscal year 1996 and thereafter, the compensatory 
education revenue for each district equals the district's 
maximum compensatory education revenue.  
    Sec. 14.  Minnesota Statutes 1990, section 124A.22, 
subdivision 4, is amended to read: 
    Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) For fiscal 
year 1992, the training and experience revenue for each district 
equals the greater of zero or the result of the following 
computation:  
    (a) (1) subtract 1.6 from the training and experience 
index.; 
    (b) (2) multiply the result in clause (a) (1) by the 
product of $700 times the actual pupil units for the school year.
    (b) For 1993 and later fiscal years, the maximum training 
and experience revenue for each district equals the greater of 
zero or the result of the following computation:  
    (1) subtract .8 from the training and experience index; 
    (2) multiply the result in clause (1) by the product of 
$575 times the actual pupil units for the school year.  
    (c) For 1993 and later fiscal years, the previous formula 
training and experience revenue for each district equals the 
amount of training and experience revenue computed for that 
district according to the formula used to compute training and 
experience revenue for fiscal year 1992.  
    (d) For fiscal year 1993, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus one-fourth of the 
difference between the district's maximum training and 
experience revenue and the district's previous formula training 
and experience revenue.  
    (e) For fiscal year 1994, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus one-half of the difference 
between the district's maximum training and experience revenue 
and the district's previous formula training and experience 
revenue.  
     (f) For fiscal year 1995, the training and experience 
revenue for each district equals the district's previous formula 
training and experience revenue plus three-fourths of the 
difference between the district's maximum training and 
experience revenue and the district's previous formula training 
and experience revenue. 
    (g) For fiscal year 1996 and thereafter, the training and 
experience revenue for each district equals the district's 
maximum training and experience revenue.  
    Sec. 15.  Minnesota Statutes 1990, section 124A.22, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [TRAINING AND EXPERIENCE LEVY.] A district's 
training and experience levy equals its training and experience 
revenue times the lesser of one or the ratio of the district's 
adjusted net tax capacity per actual pupil unit for the year 
before the year the levy is certified to the equalizing factor 
for the school year to which the levy is attributable. 
    Sec. 16.  Minnesota Statutes 1990, section 124A.22, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [TRAINING AND EXPERIENCE AID.] A district's 
training and experience aid equals its training and experience 
revenue minus its training and experience levy times the ratio 
of the actual amount levied to the permitted levy. 
    Sec. 17.  Minnesota Statutes 1990, section 124A.22, 
subdivision 5, is amended to read: 
    Subd. 5.  [DEFINITIONS.] The definitions in this 
subdivision apply only to subdivision subdivisions 6 and 6a.  
    (a) "High school" means a secondary school that has pupils 
enrolled in at least the 10th, 11th, and 12th grades.  If there 
is no secondary school in the district that has pupils enrolled 
in at least the 10th, 11th, and 12th grades, the commissioner 
shall designate one school in the district as a high school for 
the purposes of this section. 
    (b) "Secondary average daily membership" means, for a 
district that has only one high school, the average daily 
membership of resident pupils in grades 7 through 12.  For a 
district that has more than one high school, "secondary average 
daily membership" for each high school means the product of the 
average daily membership of resident pupils in grades 7 through 
12 in the high school, times the ratio of six to the number of 
grades in the high school. 
    (c) "Attendance area" means the total surface area of the 
district, in square miles, divided by the number of high schools 
in the district. 
    (d) "Isolation index" for a high school means the square 
root of one-half the attendance area plus the distance in miles, 
according to the usually traveled routes, between the high 
school and the nearest high school.  
    (e) "Qualifying high school" means a high school that has 
an isolation index greater than 23 and that has secondary 
average daily membership of less than 400.  
    (f) "Qualifying elementary school" means an elementary 
school that is located 20 19 miles or more from the nearest 
elementary school or from the nearest elementary school within 
the district and, in either case, has an elementary average 
daily membership of an average of 20 or fewer per grade. 
    (g) "Elementary average daily membership" means, for a 
district that has only one elementary school, the average daily 
membership of resident pupils in kindergarten through grade 6.  
For a district that has more than one elementary school, 
"average daily membership" for each school means the average 
daily membership of kindergarten through grade 6 multiplied by 
the ratio of seven to the number of grades in the elementary 
school. 
    Sec. 18.  Minnesota Statutes 1990, section 124A.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
supplemental revenue for fiscal year 1992 equals the product of 
the district's supplemental revenue for fiscal year 1991 times 
the ratio of:  
    (1) the district's 1991-1992 actual pupil units; to 
    (2) the district's 1990-1991 actual pupil units adjusted 
for the change in secondary pupil unit weighting from 1.35 to 
1.3 made in section 4. 
    (b) If a district's minimum allowance exceeds the sum of 
its basic revenue, previous formula compensatory education 
revenue, previous formula training and experience revenue, 
secondary sparsity revenue, and elementary sparsity revenue per 
actual pupil unit for a school fiscal year, and the excess is 
less than $250 per actual pupil unit, the district shall receive 
supplemental revenue equal to the amount of the excess times the 
actual pupil units for the school year.  If the amount of the 
excess is more than $250 per actual pupil unit, the district 
shall receive the greater of (1) $250 times the actual pupil 
units; or (2) the amount of the excess times the actual pupil 
units less the sum of (i) the difference between the district's 
training and experience revenue and its previous formula 
training and experience revenue; and (ii) the difference between 
the district's compensatory education revenue and its previous 
formula compensatory education revenue.  
    Sec. 19.  Minnesota Statutes 1990, section 124A.22, 
subdivision 9, is amended to read: 
    Subd. 9.  [DEFINITIONS DEFINITION FOR SUPPLEMENTAL 
REVENUE.] (a) The definitions definition in this subdivision 
apply applies only to subdivision 8. 
    (b) "1987-1988 revenue" means the sum of the following 
categories of revenue for a district for the 1987-1988 school 
year: 
    (1) basic foundation revenue, tier revenue, and declining 
pupil unit revenue, according to Minnesota Statutes 1986, as 
supplemented by Minnesota Statutes 1987 Supplement, chapter 
124A, plus any reduction to second tier revenue, according to 
Minnesota Statutes 1986, section 124A.08, subdivision 5; 
    (2) teacher retirement and FICA aid, according to Minnesota 
Statutes 1986, sections 124.2162 and 124.2163; 
    (3) chemical dependency aid, according to Minnesota 
Statutes 1986, section 124.246; 
    (4) gifted and talented education aid, according to 
Minnesota Statutes 1986, section 124.247; 
    (5) arts education aid, according to Minnesota Statutes 
1986, section 124.275; 
    (6) summer program aid and levy, according to Minnesota 
Statutes 1986, sections 124A.03 and 124A.033; 
    (7) programs of excellence grants, according to Minnesota 
Statutes 1986, section 126.60; and 
    (8) liability insurance levy, according to Minnesota 
Statutes 1986, section 466.06. 
    For the purpose of this subdivision, intermediate districts 
and other employing units, as defined in Minnesota Statutes 
1986, section 124.2161, shall allocate the amount of their 
teacher retirement and FICA aid for fiscal year 1988 among their 
participating school districts.  
    (c) "Minimum allowance" for a district means: 
    (1) the district's 1987-1988 general education revenue for 
fiscal year 1992, according to subdivision 1; divided by 
    (2) the district's 1987-1988 1991-1992 actual pupil units, 
adjusted for the change in secondary pupil unit weighting from 
1.4 to 1.35 made by Laws 1987, chapter 398; plus 
    (3) $143 for fiscal year 1990 and $258 for subsequent 
fiscal years. 
    Sec. 20.  Minnesota Statutes 1990, section 124A.23, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The general 
education tax rate for fiscal year 1991 is 26.3 percent.  
Beginning in 1990, The commissioner of revenue shall establish 
the general education tax rate and certify it to the 
commissioner of education by July 1 of each year for levies 
payable in the following year.  The general education tax 
capacity rate shall be a rate, rounded up to the nearest tenth 
of a percent, that, when applied to the adjusted net tax 
capacity for all districts, raises the amount specified in this 
subdivision.  The general education tax rate shall be the rate 
that raises $845,000,000 for fiscal year 1992 and 
$887,000,000 $916,000,000 for fiscal year 1993 and $961,800,000 
for fiscal year 1994 and subsequent later fiscal years.  The 
general education tax rate certified by the commissioner of 
revenue may not be changed due to changes or corrections made to 
a district's adjusted net tax capacity after the tax rate has 
been certified.  
    Sec. 21.  Minnesota Statutes 1990, section 124A.23, 
subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
education aid is the sum of the following amounts:  
    (1) the product of (i) the difference between the general 
education revenue, excluding supplemental revenue, and the 
general education levy, times (ii) the ratio of the actual 
amount levied to the permitted levy; 
    (2) the product of (i) the difference between the 
supplemental revenue and the supplemental levy, times (ii) the 
ratio of the actual amount levied to the permitted levy; and 
    (3) shared time aid according to section 124A.02, 
subdivision 21; 
    (4) referendum aid according to section 10; and 
    (5) debt service equalization aid according to article 5, 
section 8. * (The preceding paragraph beginning "(5)" was vetoed 
by the governor.) 
    Sec. 22.  Minnesota Statutes 1990, section 124A.23, 
subdivision 5, is amended to read: 
    Subd. 5.  [USES OF REVENUE.] (a) General education revenue 
may be used during the regular school year and the summer for 
general and special school purposes. 
    (b) General education revenue may not be used: 
    (1) for premiums for motor vehicle insurance protecting 
against injuries or damages arising from the operation of 
district-owned, leased, or controlled vehicles to transport 
pupils for which state aid is authorized under section 124.223; 
or 
    (2) for any purpose for which the district may levy 
according to section 275.125, subdivision 5e.  
    Sec. 23.  Minnesota Statutes 1990, section 124A.24, is 
amended to read: 
    124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 124A.23, subdivision 3, an amount must be 
deducted from state aid authorized in this chapter and chapter 
124, receivable for the same school year, and from other state 
payments receivable for the same school year authorized in 
chapter 273.  The aid in section 124.646 must not be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education tax rate, according to section 
124A.23, times the district's adjusted net tax capacity used to 
determine the general education aid for the same school year; 
and 
    (2) the district's general education revenue, excluding 
supplemental revenue, for the same school year, according to 
section 124A.22. 
    However, for fiscal year 1989, the amount of the deduction 
shall be one-fourth of the difference between clauses (1) and 
(2); for fiscal year 1990, the amount of the deduction shall be 
one-third of the difference between clauses (1) and (2); for 
fiscal year 1991, the amount of the deduction shall be one-half 
of the difference between clauses (1) and (2); for fiscal year 
1992, the amount of the deduction shall be four-sixths of the 
difference between clauses (1) and (2); and for fiscal year 
1993, the amount of the deduction shall be five-sixths of the 
difference between clauses (1) and (2).  
    Sec. 24.  Minnesota Statutes 1990, section 124A.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE REDUCTION.] A district's general 
education revenue for a school year shall be reduced if the 
estimated net unappropriated operating fund balance as of June 
30 in the prior school year exceeds $600 times the fund balance 
pupil units in the prior year.  For purposes of this subdivision 
only, fund balance pupil units means the number of resident 
pupil units in average daily membership enrolled in the 
district, including shared time pupils, according to section 
124A.02, subdivision 20, plus 
    (1) pupils attending the district for which general 
education aid adjustments are made according to section 
124A.036, subdivision 5; minus 
    (2) the sum of the resident pupils attending other 
districts for which general education aid adjustments are made 
according to section 124A.036, subdivision 5, and excluding plus 
pupils for whom payment is made according to section 126.22, 
subdivision 8, or 126.23.  The amount of the reduction shall 
equal the lesser of: 
    (1) the amount of the excess, or 
    (2) $150 times the actual pupil units for the school year. 
    The final adjustment payments made under section 124.195, 
subdivision 6, must be adjusted to reflect actual net operating 
fund balances as of June 30 of the prior school year. 
    Sec. 25.  Minnesota Statutes 1990, section 124A.29, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL STAFF DEVELOPMENT AND PARENTAL 
INVOLVEMENT PROGRAMS.] (a) Of a district's basic revenue under 
section 124A.22, subdivision 2, an amount equal to $10 $15 times 
the number of actual pupil units shall be reserved and may be 
used only to provide staff time for peer review under section 
125.12 or 125.17 or staff development programs for outcome-based 
education, according to section 126.70, subdivisions 1 and 
2a.  Staff development revenue may be used only for staff time 
for peer review or outcome-based education activities.  The 
school board shall determine which programs the staff 
development activities to provide, the manner in which they will 
be provided, and the extent to which other money local funds may 
be used for the programs to supplement staff development 
activities that implement outcome-based education. 
    (b) Of a district's basic revenue under section 124A.22, 
subdivision 2, an amount equal to $5 times the number of actual 
pupil units must be reserved and may be used only to provide 
parental involvement programs that implement section 124C.61. 
    Sec. 26.  Minnesota Statutes 1990, section 124A.30, is 
amended to read: 
    124A.30 [STATEWIDE AVERAGE REVENUE.] 
    By October 1 of each year the commissioner shall estimate 
the statewide average general education revenue per actual pupil 
unit and the range in general education revenue among pupils and 
districts by computing the difference between the fifth and 
ninety-fifth percentiles of general education revenue.  The 
commissioner must provide that information to all school 
districts. 
    If the disparity in general education revenue as measured 
by the difference between the fifth and ninety-fifth percentiles 
increases in any year, the commissioner must propose a change in 
the general education formula that will limit the disparity in 
general education revenue to no more than the disparity for the 
previous school year.  The commissioner must submit the proposal 
to the education committees of the legislature by January 15. 
    Sec. 27.  Minnesota Statutes 1990, section 298.28, 
subdivision 4, is amended to read: 
    Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
ton plus the increase provided in paragraph (d) must be 
allocated to qualifying school districts to be distributed, 
based upon the certification of the commissioner of revenue, 
under paragraphs (b) and (c). 
      (b) 5.5 cents per taxable ton must be distributed to the 
school districts in which the lands from which taconite was 
mined or quarried were located or within which the concentrate 
was produced.  The distribution must be based on the 
apportionment formula prescribed in subdivision 2. 
      (c)(i) 22 cents per taxable ton, less any amount 
distributed under paragraph (e), shall be distributed to a group 
of school districts comprised of those school districts in which 
the taconite was mined or quarried or the concentrate produced 
or in which there is a qualifying municipality as defined by 
section 273.134 in direct proportion to school district indexes 
as follows:  for each school district, its pupil units 
determined under section 124.17 for the prior school year shall 
be multiplied by the ratio of the average adjusted net tax 
capacity per pupil unit for school districts receiving aid under 
this clause as calculated pursuant to chapter 124A for the 
school year ending prior to distribution to the adjusted net tax 
capacity per pupil unit of the district.  Each district shall 
receive that portion of the distribution which its index bears 
to the sum of the indices for all school districts that receive 
the distributions.  
      (ii) Notwithstanding clause (i), each school district that 
receives a distribution under sections 298.018; 298.23 to 
298.28, exclusive of any amount received under this clause; 
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
imposing a tax on severed mineral values that is less than the 
amount of its levy reduction under section 275.125, subdivision 
9, for the second year prior to the year of the distribution 
shall receive a distribution equal to the difference; the amount 
necessary to make this payment shall be derived from 
proportionate reductions in the initial distribution to other 
school districts under clause (i).  
      (d) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
paragraph (c) in the same proportion as the increase in the 
steel mill products index over the base year of 1977 as provided 
in section 298.24, subdivision 1, clause (a), shall be 
distributed to any school district described in paragraph (c) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988, the increase over the amount 
established for 1987 shall be determined as if there had been an 
increase in the tax rate under section 298.24, subdivision 1, 
paragraph (b), according to the increase in the implicit price 
deflator.  On July 15, 1989, and subsequent years, the increase 
over the amount established for the prior year shall be 
determined according to the increase in the implicit price 
deflator as provided in section 298.24, subdivision 1, paragraph 
(a).  Each district shall receive the product of: 
    (i) $175 times the pupil units identified in section 
124.17, subdivision 1, enrolled in the second previous year or 
the 1983-1984 school year, whichever is greater, less the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year; times 
    (ii) the lesser of: 
    (A) one, or 
    (B) the ratio of the sum of the amount certified pursuant 
to section 124A.03, subdivision 2 1g, in the previous year, plus 
the amount certified pursuant to section 124A.03, subdivision 
1i, in the previous year, plus the referendum aid according to 
section 124A.03, subdivision 1h, for the current year, to the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year. 
    If the total amount provided by paragraph (d) is 
insufficient to make the payments herein required then the 
entitlement of $175 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to 
paragraph (d) shall not be applied to reduce general education 
aid which the district receives pursuant to section 124A.23 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of iron range resources and rehabilitation who 
shall deposit the same in the taconite environmental protection 
fund and the northeast Minnesota economic protection trust fund 
as provided in subdivision 11. 
    Each district receiving money according to this paragraph 
shall reserve $25 times the number of pupil units in the 
district.  It may use the money only for outcome-based learning 
programs that enhance the academic quality of the district's 
curriculum.  The programs must be approved by the commissioner 
of education.  
    (e) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    Sec. 28.  [MORATORIUM ON REFERENDUM INCREASES.] 
    A school district or an education district may not conduct 
an election in 1991 under Minnesota Statutes, section 124A.03, 
subdivision 2, paragraph (a), or 124B.03, subdivision 2, 
paragraph (a), for property taxes payable in 1992.  An election 
may be conducted under section 124A.03, subdivision 2, paragraph 
(c), or 124B.03, subdivision 2, paragraph (e). 
    Sec. 29.  [1991 REFERENDUM APPROVAL.] 
    (a) Notwithstanding any law to the contrary, the 
commissioner of education may authorize referendum levy 
elections under Minnesota Statutes, section 124A.03, or any 
successor section for 1991 taxes payable in 1992.  
     (b) The aggregrate amount of referendum levies authorized 
by the commissioner may not exceed $10,000,000. 
    (c) A school district that desires to hold an election 
under Minnesota Statutes, section 124A.03, must submit an 
application to the commissioner by August 1, 1991. 
    (d) The commissioner shall prioritize applications and 
grant authority to hold an election to districts in the 
following order: 
    (1) districts that are in statutory operating debt and have 
an approved plan or have received an extension from the 
department to file a plan to eliminate the statutory operating 
debt; 
    (2) districts that have referendum levy authority expiring 
in fiscal year 1992 or that have a documented hardship; and 
    (3) all other districts. 
    (e) The commissioner must approve, deny, or modify each 
district's application for referendum levy authority by August 
31, 1991. 
    Sec. 30.  [BADGER SCHOOL DISTRICT FUND BALANCE.] 
    If independent school district No. 676, Badger, receives 
payment of delinquent property taxes and the payment is more 
than five percent of the total property taxes paid in the fiscal 
year in which the payment is received, general education revenue 
for the district shall not be reduced according to Minnesota 
Statutes, section 124A.26, subdivision 1, for an excess fund 
balance for the following two fiscal years. 
    Sec. 31.  [LEVY RECOGNITION DIFFERENCES.] 
    For each school district that levies under Minnesota 
Statutes, section 124A.03, the commissioner of education shall 
calculate the difference between: 
    (a) the total amount of the levy, under Minnesota Statutes, 
section 124A.03, that is recognized as revenue for fiscal year 
1992 according to section 1; and 
    (b) the amount of the levy, under Minnesota Statutes, 
section 124A.03, that would have been recognized as revenue for 
fiscal year 1992 had the percentage according to section 1 not 
been increased. 
    The commissioner shall reduce other aids due the district 
by the amount of the difference.  The total reduction is 
transferred to the appropriation for general and supplemental 
education aid in this article. 
    Sec. 32.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
general and supplemental education aid:  
     1,625,240,000     .....     1992
     1,725,543,000     .....     1993
    The 1992 appropriation includes $247,302,000 for 1991 and 
$1,377,938,000 for 1992.  
    The 1993 appropriation includes $257,763,000 for 1992 and 
$1,467,780,000 for 1993. 
    Sec. 33.  [REPEALER.] 
    Minnesota Statutes 1990, sections 122.531, subdivision 5, 
and 124A.02, subdivision 19, are repealed.  
    Sec. 34.  [EFFECTIVE DATE.] 
    Sections 6; 10, subdivisions 1c, 1f, 1g, and 1h; 15; and 16 
are effective July 1, 1992. 
    Section 26 is effective July 1, 1992, and applies beginning 
with the 1992-1993 school year. 
    Sec. 35.  [EFFECTIVE DATE.] 
    Section 17 is effective retroactively to July 1, 1989.  
Section 18, paragraph (b), is effective for revenue for 1993 and 
thereafter. 

                               ARTICLE 2 

                             TRANSPORTATION 
    Section 1.  Minnesota Statutes 1990, section 120.062, 
subdivision 9, is amended to read: 
    Subd. 9.  [TRANSPORTATION.] If requested by the parent of a 
pupil, the nonresident district shall provide transportation 
within the district.  The state shall pay transportation aid to 
the district according to section 124.225. 
    The resident district is not required to provide or pay for 
transportation between the pupil's residence and the border of 
the nonresident district.  A parent may be reimbursed by the 
nonresident district for the costs of transportation from the 
pupil's residence to the border of the nonresident district if 
the pupil is from a family whose income is at or below the 
poverty level, as determined by the federal government.  The 
reimbursement may not exceed the pupil's actual cost of 
transportation or 15 cents per mile traveled, whichever is 
less.  Reimbursement may not be paid for more than 250 miles per 
week.  
    At the time a nonresident district notifies a parent or 
guardian that an application has been accepted under subdivision 
5 or 6, the nonresident district must provide the parent or 
guardian with the following information regarding the 
transportation of nonresident pupils under this section: 
    (1) a nonresident district may transport a pupil within the 
pupil's resident district under this section only with the 
approval of the resident district; and 
    (2) a parent or guardian of a pupil attending a nonresident 
district under this section may appeal under section 123.39, 
subdivision 6, the refusal of the resident district to allow the 
nonresident district to transport the pupil within the resident 
district. 
    Sec. 2.  Minnesota Statutes 1990, section 123.3514, 
subdivision 8, is amended to read: 
    Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
enrolled in a course for secondary credit may apply to the 
pupil's district of residence for reimbursement for transporting 
the pupil between the secondary school in which the pupil is 
enrolled and the post-secondary institution that the pupil 
attends.  The state board of education shall establish 
guidelines for providing state aid to districts to reimburse the 
parent or guardian for the necessary transportation costs, which 
shall be based on financial need.  The reimbursement may not 
exceed the pupil's actual cost of transportation or 15 cents per 
mile traveled, whichever is less.  Reimbursement may not be paid 
for more than 250 miles per week.  However, if the nearest 
post-secondary institution is more than 25 miles from the 
pupil's resident secondary school, the weekly reimbursement may 
not exceed the reimbursement rate per mile times the actual 
distance between the secondary school and the nearest 
post-secondary institution times ten.  The state shall pay aid 
to the district according to the guidelines established under 
this subdivision.  Chapter 14 does not apply to the guidelines. 
    Sec. 3.  Minnesota Statutes 1990, section 124.195, 
subdivision 11, is amended to read: 
    Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
according to sections 123.931 to 123.947 for pupils attending 
nonpublic schools by October 31 of each fiscal year.  If a 
payment advance to meet cash flow needs is requested by a 
district and approved by the commissioner, the state shall pay 
basic transportation aid according to section 124.225, 
subdivision 8b attributable to pupils attending nonpublic 
schools by October 31.  This subdivision applies to both the 
final adjustment payment for the prior fiscal year and the 
payment for the current fiscal year, as established in 
subdivision 10. 
    Sec. 4.  Minnesota Statutes 1990, section 124.223, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] (a) 
State transportation aid is authorized for transportation or 
board of resident elementary pupils who reside one mile or more 
from the public schools which they could attend; transportation 
or board of resident secondary pupils who reside two miles or 
more from the public schools which they could attend; 
transportation to and from schools the resident pupils attend 
according to a program approved by the commissioner of 
education, or between the schools the resident pupils attend for 
instructional classes; transportation of resident elementary 
pupils who reside one mile or more from a nonpublic school 
actually attended; transportation of resident secondary pupils 
who reside two miles or more from a nonpublic school actually 
attended; but with respect to transportation of pupils to 
nonpublic schools actually attended, only to the extent 
permitted by sections 123.76 to 123.79; transportation of a 
pupil who is a custodial parent and that pupil's child between 
the pupil's home and the child care provider and between the 
provider and the school, if the home and provider are within the 
attendance area of the school.  State transportation aid is not 
authorized for late transportation home from school for pupils 
involved in after school activities.  State transportation aid 
is not authorized for summer program transportation except as 
provided in subdivision 8. 
    (b) For the purposes of this subdivision, a district may 
designate a licensed day care facility, respite care facility, 
the residence of a relative, or the residence of a person chosen 
by the pupil's parent or guardian as the home of a pupil for 
part or all of the day, if requested by the pupil's parent or 
guardian and if that facility or residence is within the 
attendance area of the school the pupil attends. 
     (c) State transportation aid is authorized for 
transportation to and from school of an elementary pupil who 
moves during the school year within an area designated by the 
district as a mobility zone, but only for the remainder of the 
school year.  The attendance areas of schools in a mobility zone 
must be contiguous.  To be in a mobility zone, a school must 
meet both of the following requirements: 
    (i) (1) more than 50 percent of the pupils enrolled in the 
school are eligible for free or reduced school lunch; and 
    (ii) (2) the pupil withdrawal rate for the last year is 
more than 12 percent. 
    (d) A pupil withdrawal rate is determined by dividing: 
    (i) (1) the sum of the number of pupils who withdraw from 
the school, during the school year, and the number of pupils 
enrolled in the school as a result of transportation provided 
under this paragraph, by 
    (ii) (2) the number of pupils enrolled in the school. 
    (e) The district may establish eligibility requirements for 
individual pupils to receive transportation in the mobility zone.
    Sec. 5.  Minnesota Statutes 1990, section 124.223, 
subdivision 8, is amended to read: 
    Subd. 8.  [SUMMER INSTRUCTIONAL PROGRAMS.] State 
transportation aid is authorized for services described in 
subdivisions 1 to 7, 9, and 10 when provided for handicapped 
pupils in conjunction with a summer program that meets the 
requirements of section 124A.27, subdivision 9.  State 
transportation aid is authorized for services described in 
subdivision 1 when provided during the summer in conjunction 
with a learning year program established under section 121.585. 
    Sec. 6.  Minnesota Statutes 1990, section 124.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
    (1) all expenditures for transportation in the regular 
category, as defined in paragraph (e) (c), clause (1), for which 
aid is authorized in section 124.223, plus 
    (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 12-1/2 percent per year of 
the cost of the fleet, plus 
      (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
      (4) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.44, subdivision 15, which were purchased after July 1, 1982, 
for authorized transportation of pupils, with the prior approval 
of the commissioner, computed on a straight line basis at the 
rate of 20 percent per year of the cost of the type three school 
buses.  
    (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education and adjusted pursuant 
to subdivision 7a. 
    (d) "Regular transportation allowance" for the 1989-1990 
school year means the adjusted authorized predicted cost per 
FTE, inflated pursuant to subdivision 7b.  
    (e) For purposes of this section, "Transportation category" 
means a category of transportation service provided to pupils as 
follows:  
    (1) Regular transportation is transportation services 
provided during the regular school year under section 124.223, 
subdivisions 1 and 2, excluding the following transportation 
services provided under section 124.223, subdivision 1:  
transportation between schools; noon transportation to and from 
school for kindergarten pupils attending half-day sessions; late 
transportation home from school for pupils involved in after 
school activities; transportation of pupils to and from schools 
located outside their normal attendance areas under the 
provisions of a plan for desegregation mandated by the state 
board of education or under court order; and transportation of 
elementary pupils to and from school within a mobility zone;. 
    (2) Nonregular transportation is transportation services 
provided under section 124.223, subdivision 1, that are excluded 
from the regular category, and transportation services provided 
under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10;.
    (3) Excess transportation is transportation to and from 
school during the regular school year for secondary pupils 
residing at least one mile but less than two miles from the 
public school they could attend or from the nonpublic school 
actually attended, and transportation to and from school for 
pupils residing less than one mile from school who are 
transported because of extraordinary traffic, drug, or crime 
hazards; and. 
    (4) Desegregation transportation is transportation during 
the regular school year of pupils to and from schools located 
outside their normal attendance areas under a plan for 
desegregation mandated by the state board or under court order.  
    (5) Handicapped transportation is transportation provided 
under section 124.223, subdivision 4, for handicapped pupils 
between home or a respite care facility and school or other 
buildings where special instruction required by section 120.17 
is provided. 
    (f) (d) "Mobile unit" means a vehicle or trailer designed 
to provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services, 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
    (g) (e) "Current year" means the school year for which aid 
will be paid.  
    (h) (f) "Base year" means the second school year preceding 
the school year for which aid will be paid.  
    (i) (g) "Base cost" for the 1986-1987 and 1987-1988 base 
years means the ratio of: 
    (1) the sum of: 
    (i) the authorized cost in the base year for regular 
transportation as defined in clause (b), plus 
    (ii) the actual cost in the base year for excess 
transportation as defined in paragraph (e), clause (3), 
    (2) to the sum of: 
    (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
    (ii) the number of FTE pupils transported in the excess 
category in the base year.  
    (j) Base cost for the 1988-1989 base year and later years 
means the ratio of: 
    (1) the sum of the authorized cost in the base year for 
regular transportation as defined in clause paragraph (b) plus 
the actual cost in the base year for excess transportation as 
defined in clause (e) paragraph (c); 
    (2) to the sum of the number of weighted FTE pupils 
transported in the regular and excess categories in the base 
year. 
    (k) "Predicted base cost" for the 1986-1987 and 1987-1988 
base years means the base cost as predicted by subdivision 3. 
    (l) "Predicted base cost" for the 1988-1989 base year and 
later years means the predicted base cost as computed in 
subdivision 3a. 
    (m) (h) "Pupil weighting factor" for the excess 
transportation category for a school district means the lesser 
of one, or the result of the following computation: 
    (1) Divide the square mile area of the school district by 
the number of FTE pupils transported in the regular and excess 
categories in the base year;. 
    (2) Raise the result in clause (1) to the one-fifth power;. 
    (3) Divide four-tenths by the result in clause (2). 
    The pupil weighting factor for the regular transportation 
category is one.  
    (n) (i) "Weighted FTE's"  means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
    (o) (j) "Sparsity index" for a school district means the 
greater of .005 or the ratio of the square mile area of the 
school district to the sum of the number of weighted FTE's 
transported by the district in the regular and excess categories 
in the base year. 
    (p) (k) "Density index" for a school district means the 
greater of one or the result obtained by subtracting the product 
of the district's sparsity index times 20 from two. 
    (q) (l) "Contract transportation index" for a school 
district means the greater of one or the result of the following 
computation: 
    (1) Multiply the district's sparsity index by 20;. 
    (2) Select the lesser of one or the result in clause (1);. 
    (3) Multiply the district's percentage of regular FTE's 
transported in the current year using vehicles that are not 
owned by the school district by the result in clause (2). 
    (r) (m) "Adjusted predicted base cost" for the 1988-1989 
base year and after means the predicted base cost as computed in 
subdivision 3a as adjusted under subdivision 7a. 
    (s) (n) "Regular transportation allowance" for the 
1990-1991 school year and after means the adjusted predicted 
base cost, inflated and adjusted under subdivision 7b. 
    (t) "Minimum regular transportation allowance" for the 
1990-1991 school year and after means the result of the 
following computation: 
    (1) compute the sum of the district's basic transportation 
aid for the 1989-1990 school year according to subdivision 8a 
and the district's excess transportation levy for the 1989-1990 
school year according to section 275.125, subdivision 5e, clause 
(a); 
    (2) divide the result in clause (1) by the sum of the 
number of weighted FTE's transported by the district in the 
regular and excess transportation categories in the 1989-1990 
school year; 
    (3) select the lesser of the result in clause (2) or the 
district's base cost for the 1989-1990 base year according to 
paragraph (j). 
    Sec. 7.  Minnesota Statutes 1990, section 124.225, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
base cost for the 1988-1989 base year and later years equals the 
result of the following computation:  
    (a) Multiply the transportation formula allowance by the 
district's sparsity index raised to the one-fourth power.  The 
transportation formula allowance is $406 for the 1988-1989 base 
year and $421 for the 1989-1990 base year and $434 for the 
1990-1991 base year.  
    (b) Multiply the result in clause paragraph (a) by the 
district's density index raised to the 35/100 power.  
    (c) Multiply the result in clause paragraph (b) by the 
district's contract transportation index raised to the 1/20 
power.  
    Sec. 8.  Minnesota Statutes 1990, section 124.225, 
subdivision 7a, is amended to read: 
    Subd. 7a.  [BASE YEAR SOFTENING FORMULA.] Each district's 
predicted base cost determined for the 1986-1987 and 1987-1988 
base years according to subdivision 3 shall be adjusted as 
provided in this subdivision to determine the district's 
adjusted authorized predicted cost per FTE for that year.  
    (a) If the base cost of the district is within five percent 
of the predicted base cost, the district's adjusted authorized 
predicted cost per FTE shall be equal to the base cost.  
    (b) If the base cost of the district is more than five 
percent greater than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 105 
percent of the predicted base cost, plus 40 percent of the 
difference between (i) the base cost, and (ii) 105 percent of 
the predicted base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be less than 80 
percent of base cost.  
    (c) If the base cost of the district is more than five 
percent less than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 95 
percent of the predicted base cost, minus 40 percent of the 
difference between (i) 95 percent of predicted base cost, and 
(ii) the base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be more than 120 
percent of base cost.  
    (d) For the 1988-1989 base year and later years, Each 
district's predicted base cost determined according to 
subdivision 3a must be adjusted as provided in this subdivision 
to determine the district's adjusted predicted base cost for 
that year.  The adjusted predicted base cost equals 50 percent 
of the district's base cost plus 50 percent of the district's 
predicted base cost, but the adjusted predicted base cost cannot 
be less than 80 percent, nor more than 110 105 percent, of the 
base cost. 
    Sec. 9.  Minnesota Statutes 1990, section 124.225, 
subdivision 7b, is amended to read: 
    Subd. 7b.  [INFLATION FACTORS.] The adjusted authorized 
predicted cost per FTE determined for a district under 
subdivision 7a for the base year shall be increased by 4.1 
percent to determine the district's regular transportation 
allowance for the 1988-1989 school year and by 5.8 percent to 
determine the district's regular transportation allowance for 
the 1989-1990 school year.  The adjusted predicted base cost 
determined for a district under subdivision 7a for the base year 
must be increased by 5.4 4.0 percent to determine the district's 
regular transportation allowance for the 1990-1991 1991-1992 
school year and by 2.0 percent to determine the district's 
regular transportation allowance for the 1992-1993 school year, 
but the regular transportation allowance for a district cannot 
be less than the district's minimum regular transportation 
allowance according to Minnesota Statutes 1990, section 124.225, 
subdivision 1, paragraph (t). 
    Sec. 10.  Minnesota Statutes 1990, section 124.225, 
subdivision 7d, is amended to read: 
    Subd. 7d.  [TRANSPORTATION REVENUE.] Beginning in the 
1990-1991 school year, the Transportation revenue for each 
district equals the sum of the district's regular transportation 
revenue and the district's nonregular transportation revenue. 
    (a) The regular transportation revenue for each district 
equals the district's regular transportation allowance according 
to subdivision 7b times the sum of the number of FTE's 
transported by the district in the regular and, desegregation, 
and handicapped categories in the current school year. 
    (b) The nonregular transportation revenue for each district 
for the 1991-1992 school year equals the lesser of the 
district's actual costs in the 1991-1992 school year for 
nonregular transportation services or the product of the 
district's actual cost in the current 1990-1991 school year for 
nonregular transportation services as defined for the 1991-1992 
school year in subdivision 1, paragraph (c), times the ratio of 
the district's average daily membership for the 1991-1992 school 
year to the district's average daily membership for the 
1990-1991 school year according to section 124.17, subdivision 
2, times 1.03, minus the amount of regular transportation 
revenue attributable to FTE's transported in the desegregation 
category and handicapped categories in the current school year, 
plus the excess nonregular transportation revenue for the 
1991-1992 school year according to subdivision 7e. 
    (c) For the 1992-1993 and later school years, the 
nonregular transportation revenue for each district equals the 
lesser of the district's actual cost in the current school year 
for nonregular transportation services or the product of the 
district's actual cost in the base year for nonregular 
transportation services as defined for the current year in 
subdivision 1, paragraph (c), times the ratio of the district's 
average daily membership for the current year to the district's 
average daily membership for the base year according to section 
124.17, subdivision 2, times the nonregular transportation 
inflation factor for the current year, minus the amount of 
regular transportation revenue attributable to FTE's transported 
in the desegregation and handicapped categories in the current 
school year, plus the excess nonregular transportation revenue 
for the current year according to subdivision 7e.  The 
nonregular transportation inflation factor for the 1992-1993 
school year is 1.061. 
    Sec. 11.  Minnesota Statutes 1990, section 124.225, is 
amended by adding a subdivision to read: 
    Subd. 7e.  [EXCESS NONREGULAR TRANSPORTATION REVENUE.] (a) 
A district's excess nonregular transportation revenue for the 
1991-1992 school year equals an amount equal to 80 percent of 
the difference between: 
    (1) the district's actual cost in the 1991-1992 school year 
for nonregular transportation services as defined for the 
1991-1992 school year in subdivision 1, paragraph (c), and 
    (2) the product of the district's actual cost in the 
1990-1991 school year for nonregular transportation services as 
defined for the 1991-1992 school year in subdivision 1, 
paragraph (c), times 1.15, times the ratio of the district's 
average daily membership for the 1991-1992 school year to the 
district's average daily membership for the 1990-1991 school 
year. 
    (b) A district's excess nonregular transportation revenue 
for the 1992-1993 school year and later school years equals an 
amount equal to 80 percent of the difference between: 
    (1) the district's actual cost in the current year for 
nonregular transportation services as defined for the current 
year in subdivision 1, paragraph (c), and 
    (2) the product of the district's actual cost in the base 
year for nonregular transportation services as defined for the 
current year in subdivision 1, paragraph (c), times 1.30, times 
the ratio of the district's average daily membership for the 
current year to the district's average daily membership for the 
base year. 
    (c) The state total excess nonregular transportation 
revenue must not exceed $2,000,000 for the 1991-1992 school year 
and $2,000,000 for the 1992-1993 school year.  If the state 
total revenue according to paragraph (a) or (b) exceeds the 
limit set in this paragraph, the excess nonregular 
transportation revenue for each district equals the district's 
revenue according to paragraph (a) or (b), times the ratio of 
the limitation set in this paragraph to the state total revenue 
according to paragraph (a) or (b). 
    Sec. 12.  Minnesota Statutes 1990, section 124.225, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [TRANSPORTATION AID.] (a) For the 1988-1989 and 
1989-1990 school years, a district's transportation aid is equal 
to the sum of its basic transportation aid under subdivision 8b, 
its nonregular transportation aid under subdivision 8i, and its 
nonregular transportation levy equalization aid under 
subdivision 8j, minus its contracted services aid reduction 
under subdivision 8k and minus its basic transportation levy 
limitation for the levy attributable to that school year under 
section 275.125, subdivision 5. 
    (b) For 1990-1991 and later school years, A district's 
transportation aid equals the product of: 
    (1) the difference between the transportation revenue and 
the sum of: 
    (i) the maximum basic transportation levy for that school 
year under section 275.125, subdivision 5, plus 
    (ii) the maximum nonregular transportation levy for that 
school year under section 275.125, subdivision 5c, plus 
    (iii) the contracted services aid reduction under 
subdivision 8k, 
    (2) times the ratio of the sum of the actual amounts levied 
under section 275.125, subdivisions 5 and 5c, to the sum of the 
permitted maximum levies under section 275.125, subdivisions 5 
and 5c. 
    (c) (b) If the total appropriation for transportation aid 
for any fiscal year is insufficient to pay all districts the 
full amount of aid earned, the department of education shall 
reduce each district's aid in proportion to the number of 
resident pupils in average daily membership in the district to 
the state total average daily membership, and shall reduce the 
transportation levy of off-formula districts in the same 
proportion. 
    Sec. 13.  Minnesota Statutes 1990, section 124.225, 
subdivision 8k, is amended to read: 
    Subd. 8k.  [CONTRACTED SERVICES AID REDUCTION.] (a) Each 
year, a district's transportation aid shall be reduced according 
to the provisions of this subdivision, if the district 
contracted for some or all of the transportation services 
provided in the regular category. 
    (b) For the 1988-1989 and 1989-1990 school years, the 
department of education shall compute this subtraction by 
conducting the multiple regression analysis specified in 
subdivision 3 and computing the district's aid under two 
circumstances, once including the coefficient of the factor 
specified in subdivision 4b, clause (3), and once excluding the 
coefficient of that factor.  The aid subtraction shall equal the 
difference between the district's aid computed under these two 
circumstances.  
    (c) For 1990-1991 and later school years, The department of 
education shall determine the subtraction by computing the 
district's regular transportation revenue, excluding revenue 
based on the district's minimum regular transportation allowance 
according to Minnesota Statutes 1990, section 124.225, 
subdivision 1, paragraph (t), under two circumstances, once 
including the factor specified in subdivision 3a, clause 
paragraph (c), and once excluding the factor.  The aid 
subtraction equals the difference between the district's revenue 
computed under the two circumstances. 
    Sec. 14.  Minnesota Statutes 1990, section 124.225, 
subdivision 10, is amended to read: 
    Subd. 10.  [DEPRECIATION.] Any school district that owns 
school buses or mobile units shall transfer annually from the 
undesignated fund balance account in its transportation fund to 
the reserved fund balance account for bus purchases in its 
transportation fund at least an amount equal to 12-1/2 percent 
of the original cost of each type one or type two bus or mobile 
unit until the original cost of each type one or type two bus or 
mobile unit is fully amortized, plus 20 percent of the original 
cost of each type three bus included in the district's 
authorized cost under the provisions of subdivision 1, paragraph 
(b), clause (4), until the original cost of each type three bus 
is fully amortized, plus 33-1/3 percent of the cost to the 
district as of July 1 of each year for school bus reconditioning 
done by the department of corrections until the cost of the 
reconditioning is fully amortized; provided, if the district's 
transportation aid or levy is reduced pursuant to subdivision 8a 
because the appropriation for that year is insufficient, this 
amount shall be reduced in proportion to the reduction pursuant 
to subdivision 8a as a percentage of the district's 
transportation revenue under subdivision 7c 7d.  
    Sec. 15.  Minnesota Statutes 1990, section 275.125, 
subdivision 5, is amended to read: 
    Subd. 5.  [BASIC TRANSPORTATION LEVY.] Each year, a school 
district may levy for school transportation services an amount 
not to exceed the amount raised by the basic transportation tax 
rate times the adjusted net tax capacity of the district for the 
preceding year.  The basic transportation tax rate for fiscal 
year 1991 is 2.04 percent.  Beginning in 1990, The commissioner 
of revenue shall establish the basic transportation tax rate and 
certify it to the commissioner of education by July 1 of each 
year for levies payable in the following year.  The basic 
transportation tax rate shall be a rate, rounded up to the 
nearest hundredth of a percent, that, when applied to the 
adjusted net tax capacity of taxable property for all districts, 
raises the amount specified in this subdivision.  The basic 
transportation tax rate for transportation shall be the rate 
that raises $66,700,000 $64,300,000 for fiscal year 1993 and 
$68,000,000 for fiscal year 1992 1994 and subsequent fiscal 
years.  The basic transportation tax rate certified by the 
commissioner of revenue must not be changed due to changes or 
corrections made to a district's adjusted net tax capacity after 
the tax rate has been certified. 
    Sec. 16.  Minnesota Statutes 1990, section 275.125, 
subdivision 5b, is amended to read: 
    Subd. 5b.  [TRANSPORTATION LEVY OFF-FORMULA ADJUSTMENT.] 
(a) In the 1989 and 1990 fiscal years, if the basic 
transportation levy under subdivision 5 in a district 
attributable to the fiscal year exceeds the transportation aid 
computation under section 124.225, subdivisions 8b, 8i, 8j, and 
8k, the district's levy limitation shall be adjusted as provided 
in this subdivision.  In the second year following each fiscal 
year, the district's transportation levy shall be reduced by an 
amount equal to the difference between (1) the amount of the 
basic transportation levy under subdivision 5, and (2) the sum 
of the district's transportation aid computation pursuant to 
section 124.225, subdivisions 8b, 8i, 8j, and 8k, and the amount 
of any subtraction made from special state aids pursuant to 
section 124.2138, subdivision 2, less the amount of any aid 
reduction due to an insufficient appropriation as provided in 
section 124.225, subdivision 8a.  
    (b) For 1991 and later fiscal years, In a district if the 
basic transportation levy under subdivision 5 attributable to 
that fiscal year is more than the difference between (1) the 
district's transportation revenue under section 124.225, 
subdivision 7c 7d, and (2) the sum of the district's maximum 
nonregular levy under subdivision 5c and the district's 
contracted services aid reduction under section 124.225, 
subdivision 8k, and the amount of any reduction due to 
insufficient appropriation under section 124.225, subdivision 
8a, the district's transportation levy in the second year 
following each fiscal year must be reduced by the amount of the 
excess. 
    Sec. 17.  Minnesota Statutes 1990, section 275.125, 
subdivision 5c, is amended to read: 
    Subd. 5c.  [NONREGULAR TRANSPORTATION LEVY.] A school 
district may also make a levy for unreimbursed nonregular 
transportation costs pursuant to this subdivision.  The amount 
of the levy shall be the result of the following computation: 
    (a) multiply 
    (1) the amount of the district's nonregular transportation 
revenue under section 124.225, subdivision 7c 7d, that is more 
than the product of $30 $60 times the district's actual pupil 
units average daily membership, by 
    (2) 60 50 percent; 
    (b) subtract the result in clause (a) from the district's 
total nonregular transportation revenue; 
    (c) multiply the result in clause (b) by the lesser of one 
or the ratio of (i) the quotient derived by dividing the 
adjusted net tax capacity of the district for the year before 
the year the levy is certified by the actual pupil units average 
daily membership in the district for the school year to which 
the levy is attributable, to (ii) $7,258 $8,000. 
    Sec. 18.  [LEVY ADJUSTMENT.] 
    The department of education shall adjust the 1991 levy for 
each school district by the amount of the change in the 
district's nonregular transportation levy for fiscal year 1992 
according to Minnesota Statutes, section 275.125, subdivision 
5c, resulting from the changes to nonregular transportation 
revenue and levy under sections 5, 10, 11, and 17.  
Notwithstanding Minnesota Statutes, section 121.904, the entire 
amount of this levy must be recognized as revenue for fiscal 
year 1992. 
    Sec. 19.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
according to Minnesota Statutes, section 124.225: 
     $116,340,000     .....     1992
     $123,133,000     .....     1993
    The 1992 appropriation includes $17,679,000 for 1991 and 
$98,661,000 for 1992. 
    The 1993 appropriation includes $17,146,000 for 1992 and 
$105,987,000 for 1993. 
    $1,500,000 in fiscal year 1992 and $1,000,000 in fiscal 
year 1993 are for desegregation costs not funded in the regular 
or nonregular transportation formulas.  The department shall 
allocate these amounts in proportion to the unfunded 
desegregation costs.  Any excess of the 1992 amount is not 
available for transfer under Minnesota Statutes, section 124.14, 
subdivision 7 and is available for unfunded desegregation costs 
in 1993.  
    Subd. 3.  [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 
OPTIONS.] For transportation of pupils attending post-secondary 
institutions according to Minnesota Statutes, section 123.3514: 
     $45,000     .....     1992
     $45,000     .....     1993
    Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
transportation of pupils attending nonresident districts 
according to Minnesota Statutes, section 120.0621: 
     $15,000     .....     1992
     $15,000     .....     1993
    Subd. 5.  [TRANSFER AUTHORITY.] If the appropriation in 
subdivision 3 or 4 for either year exceeds the amount needed to 
pay the state's obligation for that year under that subdivision, 
the excess amount may be used to make payments for that year 
under the other subdivision. 
    Subd. 6.  [TRANSFER AUTHORITY:  FISCAL YEAR 1990 
APPROPRIATION.] If the appropriation in Laws 1989, chapter 329, 
article 2, section 8, subdivision 3 or 4 for fiscal year 1990, 
exceeds the amount needed to pay the state's obligation under 
that subdivision, the excess amount may be used to make payments 
under the other subdivision. 
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1990, section 124.225, subdivisions 3, 
4b, 7c, 8b, 8i, and 8j, are repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
    Section 19, subdivision 6, is effective the day following 
final enactment. 

                                ARTICLE 3

                            SPECIAL PROGRAMS
    Section 1.  Minnesota Statutes 1990, section 120.17, 
subdivision 3b, is amended to read: 
    Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
utilize at least the following procedures for decisions 
involving identification, assessment, and educational placement 
of handicapped children: 
      (a) Parents and guardians shall receive prior written 
notice of:  
      (1) any proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
      (2) a proposed placement of their child in, transfer from 
or to, or denial of placement in a special education program; or 
      (3) the proposed provision, addition, denial or removal of 
special education services for their child; 
    (b) The district shall not proceed with the initial formal 
assessment of a child, the initial placement of a child in a 
special education program, or the initial provision of special 
education services for a child without the prior written consent 
of the child's parent or guardian.  The refusal of a parent or 
guardian to consent may be overridden by the decision in a 
hearing held pursuant to clause (d) (e) at the district's 
initiative; 
    (c) Parents and guardians shall have an opportunity to meet 
with appropriate district staff in at least one conciliation 
conference if they object to any proposal of which they are 
notified pursuant to clause (a).  The conciliation process shall 
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 school 
district, the requirement of an opportunity for conciliation 
shall be deemed to be satisfied; 
    (d) The commissioner shall establish a mediation process to 
assist parents, school districts, or other parties to resolve 
disputes arising out of the identification, assessment, or 
educational placement of handicapped children.  The mediation 
process must be offered as an informal alternative to the due 
process hearing provided under clause (e), but must not be used 
to deny or postpone the opportunity of a parent or guardian to 
obtain a due process hearing. 
    (e) Parents, guardians, and the district shall have an 
opportunity to obtain an impartial due process hearing initiated 
and conducted by and in the school district responsible for 
assuring that an appropriate program is provided in accordance 
with state board rules, if the parent or guardian continues to 
object to:  
    (1) a proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
    (2) the proposed placement of their child in, or transfer 
of their child to a special education program; 
    (3) the proposed denial of placement of their child in a 
special education program or the transfer of their child from a 
special education program; 
    (4) the proposed provision or addition of special education 
services for their child; or 
    (5) the proposed denial or removal of special education 
services for their child. 
    At least five calendar days before the hearing, the 
objecting party shall provide the other party with a brief 
written statement of the objection and the reasons for the 
objection.  
    The hearing shall take place before an impartial hearing 
officer mutually agreed to by the school board and the parent or 
guardian.  If the school board and the parent or guardian are 
unable to agree on a hearing officer, the school board shall 
request the commissioner to appoint a hearing officer.  The 
hearing officer shall not be a school board member or employee 
of the school district where the child resides or of the child's 
school district of residence, an employee of any other public 
agency involved in the education or care of the child, or any 
person with a personal or professional interest which would 
conflict with the person's objectivity at the hearing.  A person 
who otherwise qualifies as a hearing officer is not an employee 
of the district solely because the person is paid by the 
district to serve as a hearing officer.  If the hearing officer 
requests an independent educational assessment of a child, the 
cost of the assessment shall be at district expense.  The 
proceedings shall be recorded and preserved, at the expense of 
the school district, pending ultimate disposition of the action. 
    (e) (f) The decision of the hearing officer pursuant to 
clause (d) (e) shall be rendered not more than 45 calendar days 
from the date of the receipt of the request for the hearing.  A 
hearing officer may grant specific extensions of time beyond the 
45-day period at the request of either party.  The decision of 
the hearing officer shall be binding on all parties unless 
appealed to the hearing review officer by the parent, guardian, 
or the school board of the district where the child resides 
pursuant to clause (f) (g). 
    The local decision shall: 
    (1) be in writing; 
    (2) state the controlling facts upon which the decision is 
made in sufficient detail to apprise the parties and the hearing 
review officer of the basis and reason for the decision; 
    (3) state whether the special education program or special 
education services appropriate to the child's needs can be 
reasonably provided within the resources available to the 
responsible district or districts; 
    (4) state the amount and source of any additional district 
expenditure necessary to implement the decision; and 
    (5) be based on the standards set forth in subdivision 3a 
and the rules of the state board. 
    (f) (g) Any local decision issued pursuant to clauses 
(d) (e) and (e) (f) may be appealed to the hearing review 
officer within 30 calendar days of receipt of that written 
decision, by the parent, guardian, or the school board of the 
district responsible for assuring that an appropriate program is 
provided in accordance with state board rules. 
    If the decision is appealed, a written transcript of the 
hearing shall be made by the school district and shall be 
accessible to the parties involved within five calendar days of 
the filing of the appeal.  The hearing review officer shall 
issue a final independent decision based on an impartial review 
of the local decision and the entire record within 30 60 
calendar days after the filing of the appeal.  The hearing 
review officer shall seek additional evidence if necessary and 
may afford the parties an opportunity for written or oral 
argument; provided any hearing held to seek additional evidence 
shall be an impartial due process hearing but shall be deemed 
not to be a contested case hearing for purposes of chapter 14.  
The hearing review officer may grant specific extensions of time 
beyond the 30-day period at the request of any party. 
    The final decision shall: 
    (1) be in writing; 
    (2) include findings and conclusions; and 
    (3) be based upon the standards set forth in subdivision 3a 
and in the rules of the state board. 
    (g) (h) The decision of the hearing review officer shall be 
final unless appealed by the parent or guardian or school board 
to the court of appeals.  The judicial review shall be in 
accordance with chapter 14.  
    (h) (i) The commissioner of education, having delegated 
general supervision of special education to the appropriate 
staff, shall be select an individual who has the qualifications 
enumerated in this paragraph to serve as the hearing review 
officer except for appeals in which: 
    (1) the commissioner has 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; 
    (2) (3) the commissioner has individual must not have been 
employed as an administrator by the district that is a party to 
the hearing; 
    (3) (4) the commissioner has individual must not have been 
involved in the selection of the administrators of the district 
that is a party to the hearing; 
    (4) (5) the commissioner has 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; 
    (5) (6) the appeal challenges individual must not have 
substantial involvement in the development of a state or local 
policy which was developed with substantial involvement of the 
commissioner; or procedures that are challenged in the appeal; 
    (6) the appeal challenges the actions of a department 
employee or official.  
    For any appeal to which the above exceptions apply, the 
state board of education shall name an impartial and competent 
hearing review officer and 
    (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, the 
state department of education, the state board of education, or 
a parent advocacy organization or group.  
    (j) In all appeals, the parent or guardian of the 
handicapped student or the district that is a party to the 
hearing may challenge the impartiality or competence of the 
proposed hearing review officer by applying to the state board 
of education.  
    (i) (k) Pending the completion of proceedings pursuant to 
this subdivision, unless the district and the parent or guardian 
of the child agree otherwise, the child shall remain in the 
child's current educational placement and shall not be denied 
initial admission to school. 
    (j) (l) The child's school district of residence, a 
resident district, and providing district shall receive notice 
of and may be a party to any hearings or appeals under this 
subdivision. 
    Sec. 2.  Minnesota Statutes 1990, section 120.17, 
subdivision 7a, is amended to read: 
    Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE HANDICAPPED.] 
Responsibility for special instruction and services for a 
visually disabled or hearing impaired child attending the 
Minnesota state academy for the deaf or the Minnesota state 
academy for the blind shall be determined in the following 
manner: 
    (a) The legal residence of the child shall be the school 
district in which the child's parent or guardian resides. 
    (b) When it is determined pursuant to section 128A.05, 
subdivision 1 or 2 that the child is entitled to attend either 
school, the state board shall provide the appropriate 
educational program for the child.  The state board shall make a 
tuition charge to the child's district of residence for the cost 
of providing the program.  The amount of tuition charged shall 
not exceed the basic revenue of the district for that child, for 
the amount of time the child is in the program.  For purposes of 
this subdivision, "basic revenue" has the meaning given it in 
section 124A.22, subdivision 2.  The district of the child's 
residence shall pay the tuition and may claim general education 
aid for the child.  The district of the child's residence shall 
not receive aid pursuant to section 124.32, subdivision 5, for 
tuition paid pursuant to this subdivision.  All Tuition received 
by the state board, except for tuition received under clause 
(c), shall be deposited in the state treasury as provided in 
clause (g). 
    (c) In addition to the tuition charge allowed in clause 
(b), the academies may charge the child's district of residence 
for the academy's unreimbursed cost of providing an 
instructional aide assigned to that child, if that aide is 
required by the child's individual education plan.  Tuition 
received under this clause must be used by the academies to 
provide the required service. 
    (c) (d) When it is determined that the child can benefit 
from public school enrollment but that the child should also 
remain in attendance at the applicable school, the school 
district where the institution is located shall provide an 
appropriate educational program for the child and shall make a 
tuition charge to the state board for the actual cost of 
providing the program, less any amount of aid received pursuant 
to section 124.32.  The state board shall pay the tuition and 
other program costs including the unreimbursed transportation 
costs.  Aids for handicapped children shall be paid to the 
district providing the special instruction and services.  
Special transportation shall be provided by the district 
providing the educational program and the state shall reimburse 
such district within the limits provided by law.  
    (d) (e) Notwithstanding the provisions of clauses (b) and 
(c) (d), the state board may agree to make a tuition charge for 
less than the amount specified in clause (b) for pupils 
attending the applicable school who are residents of the 
district where the institution is located and who do not board 
at the institution, if that district agrees to make a tuition 
charge to the state board for less than the amount specified in 
clause (c) (d) for providing appropriate educational programs to 
pupils attending the applicable school. 
    (e) (f) Notwithstanding the provisions of clauses (b) and 
(c) (d), the state board may agree to supply staff from the 
Minnesota state academy for the deaf and the Minnesota state 
academy for the blind to participate in the programs provided by 
the district where the institutions are located when the 
programs are provided to students in attendance at the state 
schools.  
    (g) On May 1 of each year, the state board shall count the 
actual number of Minnesota resident elementary students and the 
actual number of Minnesota resident secondary students enrolled 
and receiving education services at the Minnesota state academy 
for the deaf and the Minnesota state academy for the blind.  The 
state board shall deposit in the state treasury an amount equal 
to all tuition received less:  
    (1) the total number of students on May 1 less 175, times 
the ratio of the number of elementary students to the total 
number of students on May 1, times the general education formula 
allowance; plus 
    (2) the total number of students on May 1 less 175, times 
the ratio of the number of secondary students on May 1 to the 
total number of students on May 1, times 1.3, times the general 
education formula allowance.  
    (h) The sum provided by the calculation in clause (g), 
subclauses (1) and (2), must be deposited in the state treasury 
and credited to the general operation account of the academy for 
the deaf and the academy for the blind.  
    (i) There is annually appropriated to the department of 
education for the Faribault academies the tuition amounts 
received and credited to the general operation account of the 
academies under this section.  
    Sec. 3.  [120.173] [ALTERNATIVE DELIVERY OF SPECIALIZED 
INSTRUCTIONAL SERVICES.] 
    Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
of education may approve applications from school districts to 
provide prevention services as an alternative to special 
education and other compensatory programs during three school 
years.  A district with an approved program may provide 
instruction and services in a regular education classroom to 
eligible pupils.  Pupils eligible to participate in the program 
are low-performing pupils who, based on documented experience, 
the professional judgment of a classroom teacher, or a team of 
licensed professionals, would eventually qualify for special 
education instruction or related services under section 120.17 
if the intervention services authorized by this section were 
unavailable.  Pupils may be provided services during extended 
school days and throughout the entire year.  
    Subd. 2.  [APPLICATION CONTENTS.] The application must set 
forth: 
    (1) instructional services available to eligible pupils 
under section 124.311, subdivision 3, and handicapped pupils 
under section 120.03; 
    (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.  
    Subd. 3.  [EVALUATION.] The application shall also set 
forth the review and evaluation procedures to be used by the 
district addressing at least the following:  
    (1) the number of handicapped and nonhandicapped pupils 
served; 
    (2) the impact of the program on the academic progress and 
social adjustment of the pupils; 
    (3) the level of satisfaction teachers, parents, and pupils 
have with the program; 
    (4) the effect of the program on the number of referrals 
for special education, federal chapter 1, and other programs; 
    (5) the amount of time spent by teachers on procedural 
activities; 
    (6) the increased amount of time the pupil is in a regular 
education classroom; and 
    (7) cost implications.  
    Subd. 4.  [REVIEW FOR EXCESS EXPENDITURES.] The 
commissioner shall review each application to determine whether 
the personnel, equipment, supplies, residential aid, and summer 
school are necessary to meet the district's obligation to 
provide special instruction and services to handicapped children 
according to section 120.17.  The commissioner shall not approve 
revenue for any expenditures determined to be unnecessary.  
    Subd. 5.  [ANNUAL REPORT.] Each year the district must 
submit to the commissioner a report containing the information 
described in subdivision 3 and section 124.311, subdivision 7.  
    Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
program must be individually evaluated according to the pupil's 
actual abilities and needs.  A pupil who is eligible for 
services under section 120.17 is entitled to procedural 
protections provided under Public Law Number 94-142 in any 
matter that affects the identification, evaluation, placement, 
or change in placement of a pupil.  The district must ensure the 
protection of a pupil's civil rights, provide equal educational 
opportunities, and prohibit discrimination.  Failure to comply 
with this subdivision will at least cause a district to become 
ineligible to participate in the program.  Notwithstanding rules 
of the state board of education, a pupil's rights under this 
section cannot be waived by the state board. 
    Sec. 4.  Minnesota Statutes 1990, section 120.181, is 
amended to read: 
     120.181 [TEMPORARY PLACEMENTS FOR CARE AND TREATMENT OF 
NONHANDICAPPED PUPILS.] 
     The responsibility for providing instruction and 
transportation for a nonhandicapped pupil 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, shall be determined in the following manner:  
     (a) The school district of residence of the pupil shall be 
the district in which the pupil's parent or guardian resides or 
the district designated by the commissioner of education if 
neither parent nor guardian is living within the state.  
     (b) Prior to the placement of a pupil for care and 
treatment, the district of residence shall 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, 
shall notify the district of residence of the emergency 
placement within 15 days of the placement.  
     (c) When a nonhandicapped pupil 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 shall provide instruction 
and necessary transportation for the pupil.  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.  
    (d) When a nonhandicapped pupil is temporarily placed in a 
residential program for care and treatment, the district in 
which the pupil is placed shall provide instruction for the 
pupil and necessary transportation within that district while 
the pupil is receiving instruction, and in the case of a 
placement outside of the district of residence, the nonresident 
district shall 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 
nonhandicapped pupil is temporarily placed in a residential 
program outside the district of residence, the administrator of 
the court placing the pupil shall send timely written notice of 
the placement to the district of residence. 
    (e) The district of residence shall receive general 
education aid for the pupil and pay tuition and other 
instructional costs, excluding transportation costs, to the 
district providing the instruction.  Transportation costs shall 
be paid by the district providing the transportation and the 
state shall pay transportation aid to that district.  For 
purposes of computing state transportation aid, pupils governed 
by this subdivision shall be included in the handicapped 
transportation category.  
    Sec. 5.  Minnesota Statutes 1990, section 124.273, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] Each year the state shall 
pay a school district a portion of the salary, calculated from 
the date of hire, of one full-time equivalent teacher for each 
45 pupils of limited English proficiency enrolled in the 
district.  Notwithstanding the foregoing, the state shall pay a 
portion of the salary, calculated from the date of hire, of 
one-half of a full-time equivalent teacher to a district with 22 
or fewer pupils of limited English proficiency enrolled.  The 
portion for a full-time teacher shall be the lesser of 61 55.2 
percent of the salary or $17,000 $15,320.  The portion for a 
part-time or limited-time teacher shall be the lesser of 61 55.2 
percent of the salary or the product of $17,000 $15,320 times 
the ratio of the person's actual employment to full-time 
employment. 
    Sec. 6.  Minnesota Statutes 1990, section 124.311, 
subdivision 4, is amended to read: 
    Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
must be used to provide direct instructional services to an 
eligible pupil, or group of eligible pupils, under the following 
conditions:  
    (a) Instruction may be provided at one or more grade levels 
from kindergarten through grade 8.  If an assessment of pupils' 
needs within a district demonstrates that the eligible pupils in 
grades kindergarten through 8 are being appropriately served, a 
district may serve eligible pupils in grades 9 through 12. 
    (b) Instruction must be provided in the usual and customary 
classroom of the eligible pupil.  
    (c) Instruction must be provided under the supervision of 
the eligible pupil's regular classroom teacher.  Instruction may 
be provided by the eligible pupil's classroom teacher, by 
another teacher, by a team of teachers, or by an education 
assistant or aide.  A special education teacher may provide 
instruction, but instruction that is provided under this section 
is not eligible for aid under section 124.32.  
    (d) The instruction that is provided must differ from the 
initial instruction the pupil received in the regular classroom 
setting.  The instruction may differ by presenting different 
curriculum than was initially presented in the regular 
classroom, or by presenting the same curriculum:  
    (1) at a different rate or in a different sequence than it 
was initially presented; 
    (2) using different teaching methods or techniques than 
were used initially; or 
    (3) using different instructional materials than were used 
initially.  
    Sec. 7.  Minnesota Statutes 1990, section 124.32, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TEACHERS SALARIES.] (a) Each year the state 
shall pay to a district a portion of the salary of each 
essential person employed in the district's program for 
handicapped children during the regular school year, whether the 
person is employed by one or more districts.  The state shall 
also pay to the Minnesota state academy for the deaf or the 
Minnesota state academy for the blind a part of the salary of 
each instructional aide assigned to a child attending the 
academy, if that aide is required by the child's individual 
education plan.  
    (b) For the 1991-1992 school year, the portion for a 
full-time person shall be an amount not to exceed the lesser of 
60 56.4 percent of the salary or $16,727 $15,700.  The portion 
for a part-time or limited-time person shall be an amount not to 
exceed the lesser of 60 56.4 percent of the salary or the 
product of $16,727 $15,700 times the ratio of the person's 
actual employment to full-time employment. 
    (c) For the 1992-1993 school year and thereafter, the 
portion for a full-time person is an amount not to exceed the 
lesser of 55.2 percent of the salary or $15,320.  The portion 
for a part-time or limited-time person is an amount not to 
exceed the lesser of 55.2 percent of the salary or the product 
of $15,320 times the ratio of the person's actual employment to 
full-time employment. 
    Sec. 8.  Minnesota Statutes 1990, section 124.32, 
subdivision 10, is amended to read: 
    Subd. 10.  [SUMMER SCHOOL.] The state shall pay aid for 
summer school programs for handicapped children on the basis of 
subdivisions 1b, 1d, and 5 for the preceding current school 
year.  The state shall also pay to the Minnesota state academy 
for the deaf or the Minnesota state academy for the blind a part 
of the salary of each instructional aide assigned to a child 
attending the academy, if that aide is required by the child's 
individual education plan.  By March 15 of each year, districts 
shall submit separate applications for program and budget 
approval for summer school programs.  The review of these 
applications shall be as provided in subdivision 7.  By May 1 of 
each year, the commissioner shall approve, disapprove or modify 
the applications and notify the districts of the action and of 
the estimated amount of aid for the summer school programs.  
    Sec. 9.  [124.321] [SPECIAL EDUCATION LEVY EQUALIZATION 
REVENUE.] 
    Subdivision 1.  [LEVY EQUALIZATION REVENUE.] Special 
education levy equalization revenue for a school district, 
excluding an intermediate school district, equals the sum of the 
following amounts: 
    (1) 66 percent of the salaries paid to essential personnel 
in that district minus the amount of state aid and any federal 
aid, if applicable, paid to that district for salaries of these 
essential personnel under section 124.32, subdivisions 1b and 
10, for the year to which the levy is attributable, plus 
    (2) 66 percent of the salaries paid to essential personnel 
in that district minus the amount of state aid and any federal 
aid, if applicable, paid to that district for salaries of those 
essential personnel under section 124.574, subdivision 2b, for 
the year to which the levy is attributable, plus 
    (3) 61 percent of the salaries paid to limited English 
proficiency program teachers in that district minus the amount 
of state aid and any federal aid, if applicable, paid to that 
district for salaries of these teachers under section 124.273, 
subdivision 1b, for the year to which the levy is attributable, 
plus 
    (4) the alternative delivery levy revenue determined 
according to section 10, subdivision 4, plus 
    (5) the amount allocated to the district by special 
education cooperatives or intermediate districts in which it 
participates according to subdivision 2. 
    A district that receives alternative delivery levy revenue 
according to section 10, subdivision 4, shall not receive levy 
equalization revenue under clause (1) or subdivision 2, clause 
(1), for the same fiscal year. 
    Subd. 2.  [REVENUE ALLOCATION FROM COOPERATIVES AND 
INTERMEDIATE DISTRICTS.] (a) For purposes of this section, a 
special education cooperative or an intermediate district shall 
allocate to participating school districts the sum of the 
following amounts: 
    (1) 66 percent of the salaries paid to essential personnel 
in that cooperative or intermediate district minus the amount of 
state aid and any federal aid, if applicable, paid to that 
cooperative or intermediate district for salaries of these 
essential personnel under section 124.32, subdivisions 1b and 
10, for the year to which the levy is attributable, plus 
    (2) 66 percent of the salaries paid to essential personnel 
in that district minus the amount of state aid and any federal 
aid, if applicable, paid to that district for salaries of those 
essential personnel under section 124.574, subdivision 2b, for 
the year to which the levy is attributable, plus 
    (3) 61 percent of the salaries paid to limited English 
proficiency program teachers in that cooperative or intermediate 
district minus the amount of state aid and any federal aid, if 
applicable, paid to that cooperative or intermediate district 
for salaries of these teachers under section 124.273, 
subdivision 1b, for the year to which the levy is attributable. 
    (b) A special education cooperative or an intermediate 
district that allocates amounts to participating school 
districts under this subdivision must report the amounts 
allocated to the department of education. 
    (c) For purposes of this subdivision, the Minnesota state 
academy for the deaf or the Minnesota state academy for the 
blind each year shall allocate an amount equal to 66 percent of 
salaries paid to instructional aides in either academy minus the 
amount of state aid and any federal aid, if applicable, paid to 
either academy for salaries of these instructional aides under 
sections 124.32, subdivisions 1b and 10, for the year to each 
school district that assigns a child with an individual 
education plan requiring an instructional aide to attend either 
academy.  The school districts that assign a child who requires 
an instructional aide may make a levy in the amount of the costs 
allocated to them by either academy. 
    (d) When the Minnesota state academy for the deaf or the 
Minnesota state academy for the blind allocates unreimbursed 
portions of salaries of instructional aides among school 
districts that assign a child who requires an instructional 
aide, for purposes of the districts making a levy under this 
subdivision, the academy shall provide information to the 
department of education on the amount of unreimbursed costs of 
salaries it allocated to the school districts that assign a 
child who requires an instructional aide. 
    Subd. 3.  [SPECIAL EDUCATION LEVY.] To receive special 
education levy revenue, a district may levy an amount equal to 
the district's special education levy equalization revenue as 
defined in subdivision 1 multiplied by 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 preceding the year the 
levy is certified by the actual pupil units in the district for 
the school year to which the levy is attributable, to 
    (2) $3,540. 
    Subd. 4.  [SPECIAL EDUCATION LEVY EQUALIZATION AID.] A 
district's special education levy equalization aid is the 
difference between its special education levy equalization 
revenue and its special education levy.  If a district does not 
levy the entire amount permitted, special education levy 
equalization aid must be reduced in proportion to the actual 
amount levied. 
    Subd. 5.  [PRORATION.] In the event that the special 
education levy equalization aid for any year is prorated, a 
district having its aid prorated may levy an additional amount 
equal to the amount not paid by the state due to proration. 
    Sec. 10.  [124.322] [ALTERNATIVE DELIVERY REVENUE.] 
    Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
alternative delivery revenue if the commissioner of education 
has approved the application of the district according to 
section 3. 
    Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
first fiscal year after approval of an application, a district 
shall receive the sum of the revenue it received for the 
preceding fiscal year for its special education program under 
sections 124.32, subdivisions 1b, 2, 5, and 10, and Minnesota 
Statutes 1990, section 275.125, subdivision 8c, or section 9, 
subdivisions 1 and 2, as applicable, multiplied by 1.03.  For 
each of the next two fiscal years, the district shall receive 
the amount it received for the previous fiscal year multiplied 
by 1.03.  
    Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
year after approval of an application, a district shall receive 
the sum of the aid it received for the preceding fiscal year 
under section 124.32, subdivisions 1b, 2, 5, and 10, multiplied 
by 1.03.  The aid for the first year of revenue shall not be 
prorated.  For each of the next two fiscal years, the district 
shall receive the amount of aid it received for the previous 
fiscal year multiplied by 1.03.  A district that receives aid 
under this subdivision shall not receive aid under section 
124.32, subdivisions 1b, 2, 5, and 10, for the same fiscal year. 
    Subd. 4.  [ALTERNATIVE DELIVERY LEVY REVENUE.] A district 
shall receive alternative delivery levy revenue equal to the 
difference between the alternative delivery revenue and the 
alternative delivery aid.  If the alternative delivery aid for a 
district is prorated for the second or third fiscal years, the 
alternative delivery levy revenue shall be increased by the 
amount not paid by the state due to proration.  For fiscal year 
1993 and thereafter, the alternative delivery levy revenue shall 
be included under section 9, subdivision 1, for purposes of 
computing the special education levy under section 9, 
subdivision 3, and the special education levy equalization aid 
under section 9, subdivision 4. 
    Subd. 5.  [USE OF REVENUE.] Revenue under this section 
shall be used to implement the approved program.  
    Sec. 11.  Minnesota Statutes 1990, section 124.332, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
individualized learning and development aid if the school board 
of the district has adopted a district instructor-learner ratio 
specified by the district's curriculum advisory committee and 
submits its ratio to the department of education by the April 
15, 1990 preceding the year for which the district will receive 
aid. 
    Sec. 12.  Minnesota Statutes 1990, section 124.332, 
subdivision 2, is amended to read: 
    Subd. 2.  [AID AMOUNT.] An eligible district shall receive 
individualized learning and development aid in an amount equal 
to $62.25 $64 for 1991-1992 and $66 for 1992-1993 and thereafter 
times the district's average daily membership in 
kindergarten and grade 1 to grade 2 for the 1991-1992 school 
year, and in kindergarten to grade 3 for the 1992-1993 school 
year and thereafter.  Aid received under this subdivision must 
be used only to achieve the district's instructor-learner ratios 
and prepare and use individualized learning plans for learners 
in kindergarten and grade 1 the grades for which the district is 
receiving aid.  If the district has achieved and is maintaining 
the district's instructor-learner ratios, then the district may 
use the aid to work to improve program offerings throughout the 
district.  
    Sec. 13.  Minnesota Statutes 1990, section 124.573, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SECONDARY VOCATIONAL AID.] For 1989-1990 and 
later school years, A district's or cooperative center's 
"secondary vocational aid" for secondary vocational education 
programs for a school fiscal year equals the sum of the 
following amounts for each program: 
    (a) the greater of zero, or 75 percent of the difference 
between:  
    (1) the salaries paid to essential, licensed personnel in 
that school year for services rendered in that program, and 
    (2) 50 percent of the general education revenue 
attributable to secondary pupils for the number of hours that 
the pupils are enrolled in that program; and 
    (b) 30 40 percent of approved expenditures for the 
following: 
    (1) contracted services provided by a public or private 
agency other than a Minnesota school district or cooperative 
center under section 124.573, subdivision 3a; 
    (2) necessary travel between instructional sites by 
licensed secondary vocational education personnel; 
    (3) necessary travel by licensed secondary vocational 
education personnel for vocational student organization 
activities held within the state for instructional purposes; 
    (4) curriculum development activities that are part of a 
five-year plan for improvement based on program assessment; 
    (5) necessary travel by licensed secondary vocational 
education personnel for noncollegiate credit bearing 
professional development; and 
     (6) specialized vocational instructional supplies. 
    Sec. 14.  Minnesota Statutes 1990, section 124.573, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [AID FOR CONTRACTED SERVICES.] In addition to 
the provisions of subdivisions 2 and 3, a school district or 
cooperative center may contract with a public or private agency 
other than a Minnesota school district or cooperative center for 
the provision of secondary vocational education services.  For 
the 1986-1987 school year, the state shall pay each district or 
cooperative center 40 percent of the amount of a contract 
entered into pursuant to this subdivision.  For the 1987-1988 
school year, the state shall pay each district or cooperative 
center 35 percent of the amount of a contract entered into under 
this subdivision.  The state board shall promulgate rules 
relating to program approval procedures and criteria for these 
contracts and aid shall be paid only for contracts approved by 
the commissioner of education.  For the purposes of subdivision 
4, the district or cooperative center contracting for these 
services shall be construed to be providing the services.  
    Sec. 15.  Minnesota Statutes 1990, section 124.574, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [SALARIES.] Each year the state shall pay to any 
district or cooperative center a portion of the salary of each 
essential licensed person employed during that school fiscal 
year for services rendered in that district or center's 
secondary vocational education programs for handicapped children.
    (a) For fiscal year 1992, the portion for a full-time 
person shall be an amount not to exceed the lesser of 60 56.4 
percent of the salary or $16,727 $15,700.  The portion for a 
part-time or limited-time person shall be the lesser of 60 56.4 
percent of the salary or the product of $16,727 $15,700 times 
the ratio of the person's actual employment to full-time 
employment.  
    (b) For fiscal year 1993 and thereafter, the portion for a 
full-time person is an amount not to exceed the lesser of 55.2 
percent of the salary or $15,320.  The portion for a part-time 
or limited-time person is the lesser of 55.2 percent of the 
salary or the product of $15,320 times the ratio of the person's 
actual employment to full-time employment. 
    Sec. 16.  Minnesota Statutes 1990, section 124.86, is 
amended to read: 
    124.86 [STATE REVENUE FOR AMERICAN INDIAN TRIBAL CONTRACT 
OR GRANT SCHOOLS.] 
    Subdivision 1.  [AUTHORIZATION.] Each year each American 
Indian-controlled tribal contract or grant school authorized by 
the United States Code, title 25, section 450f, that is located 
on a reservation within the state is eligible to receive tribal 
contract or grant school aid subject to the requirements in this 
subdivision. 
    (a) The school must plan, conduct, and administer an 
education program that complies with the requirements of this 
chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 126, 
129, and 268A. 
    (b) The school must comply with all other state statutes 
governing independent school districts.  
    (c) The state tribal contract or grant school aid must be 
used to supplement, and not to replace, the money for American 
Indian education programs provided by the federal government. 
    Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
tribal contract or grant school that is located on a reservation 
within the state and that complies with the requirements in 
subdivision 1 is eligible to receive tribal contract or grant 
school aid.  The amount of aid is derived by: 
    (1) multiplying the formula allowance under section 
124A.22, subdivision 2, times the difference between (a) the 
actual pupil units as defined in section 124A.02, subdivision 
15, in attendance during the fall count week in average daily 
membership and (b) the number of pupils for the current school 
year, weighted according to section 124.17, subdivision 1, 
receiving benefits under section 123.933 or 123.935 or for which 
the school is receiving reimbursement under section 126.23; 
    (2) subtracting from the result in clause (1) the amount of 
money allotted to the school by the federal government through 
the Indian School Equalization Program of the Bureau of Indian 
Affairs, according to Code of Federal Regulations, title 25, 
part 39, subparts A to E, for the basic program as defined by 
section 39.11, paragraph (b), for the base rate as applied to 
kindergarten through twelfth grade, excluding small school 
adjustments and additional weighting, but not money allotted 
through subparts F to L for contingency funds, school board 
training, student training, interim maintenance and minor 
repair, interim administration cost, prekindergarten, and 
operation and maintenance, and the amount of money that is 
received according to section 126.23; 
    (3) dividing the result in clause (2) by the actual pupil 
units in average daily membership; and 
    (4) multiplying the actual pupil units in average daily 
membership by the lesser of $1,500 or the result in clause (3). 
    Subd. 3.  [LAW WAIVER.] Notwithstanding subdivision 1, 
paragraphs (a) and (b), a tribal contract or grant school: 
    (1) is not subject to the Minnesota election law; 
    (2) has no authority under this section to levy for 
property taxes, issue and sell bonds, or incur debt; and 
    (3) may request through its managing tribal organization a 
recommendation of the state board of education, for 
consideration of the legislature, that a tribal contract or 
grant school not be subject to specified statutes related to 
independent school districts. 
    Subd. 4.  [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] A 
school receiving aid under this section is eligible to receive 
early childhood family education revenue to provide early 
childhood family education programs for parents and children who 
are enrolled or eligible for enrollment in a federally 
recognized tribe.  The revenue equals 1.5 times the statewide 
average expenditure per participant under section 124.2711, 
times the number of children and parents participating full time 
in the program.  The program shall comply with section 121.882, 
except that the school is not required to provide a community 
education program or establish a community education advisory 
council.  The program shall be designed to improve the skills of 
parents and promote American Indian history, language, and 
culture.  The school shall make affirmative efforts to encourage 
participation by fathers.  Admission may not be limited to those 
enrolled in or eligible for enrollment in a federally recognized 
tribe. 
    Sec. 17.  [125.62] [GRANTS TO PREPARE INDIAN TEACHERS.] 
    Subdivision 1.  [ESTABLISHMENT.] A grant program is 
established to assist American Indian people to become teachers 
and to provide additional education for American Indian 
teachers.  The state board may award a joint grant to each of 
the following:  
    (1) the Duluth campus of the University of Minnesota and 
independent school district No. 709, Duluth; 
    (2) Bemidji state university and independent school 
district No. 38, Red Lake; 
    (3) Moorhead state university and one of the school 
districts located within the White Earth reservation; and 
    (4) Augsburg college and special school district No. 1, 
Minneapolis. 
    Subd. 2.  [APPLICATION.] To obtain a joint grant, a joint 
application shall be submitted to the state board of education.  
The application must be developed with the participation of the 
parent advisory committee, established according to section 
126.51, and the Indian advisory committee at the post-secondary 
institution.  The joint application shall set forth: 
    (1) the in-kind, coordination, and mentorship services to 
be provided by the post-secondary institution; and 
    (2) the coordination and mentorship services to be provided 
by the school district. 
    Subd. 3.  [REVIEW AND COMMENT.] The state board shall 
submit the joint application to the Minnesota Indian scholarship 
committee for review and comment. 
    Subd. 4.  [GRANT AMOUNT.] The state board may award a joint 
grant in the amount it determines to be appropriate.  The grant 
shall include money for the post-secondary institution, school 
district, student scholarships, and student loans. 
    Subd. 5.  [INFORMATION TO STUDENT APPLICANTS.] At the time 
a student applies for a scholarship and loan, the student shall 
be provided information about the fields of licensure needed by 
school districts in the part of the state within which the 
district receiving the joint grant is located.  The information 
shall be acquired and periodically updated by the recipients of 
the joint grant.  Information provided to students shall clearly 
state that scholarship and loan decisions are not based upon the 
field of licensure selected by the student. 
    Subd. 6.  [ELIGIBILITY FOR SCHOLARSHIPS AND LOANS.] The 
following Indian people are eligible for scholarships: 
    (1) a student, including a teacher aide employed by a 
district receiving a joint grant, who intends to become a 
teacher and who is enrolled in a post-secondary institution 
receiving a joint grant; 
    (2) a licensed employee of a district receiving a joint 
grant, who is enrolled in a master of education program; and 
    (3) a student who, after applying for federal and state 
financial aid and an Indian scholarship according to section 
124.48, has financial needs that remain unmet.  Financial need 
shall be determined according to the uniform methodology for 
needs determination. 
    A person who has actual living expenses in addition to 
those addressed by the uniform methodology for needs 
determination may receive a loan according to criteria 
established by the state board.  A contract shall be executed 
between the state and the student for the amount and terms of 
the loan. 
    Subd. 7.  [LOAN FORGIVENESS.] The loan may be forgiven if 
the recipient is employed as a teacher, as defined in section 
125.12 or 125.17, in an eligible school or program in 
Minnesota.  One-fifth of the principal of the outstanding loan 
amount shall be forgiven for each year of eligible employment, 
or a pro rata amount for eligible employment during part of a 
school year, part-time employment as a substitute teacher, or 
other eligible part-time teaching.  The following schools and 
programs are eligible for the purposes of loan forgiveness: 
    (1) a school or program operated by a school district; 
    (2) a tribal contract school eligible to receive aid 
according to section 124.86; 
    (3) a head start program; 
    (4) an early childhood family education program; or 
    (5) a program providing educational services to children 
who have not entered kindergarten. 
    If a person has an outstanding loan obtained through this 
program, the duty to make payments of principal and interest may 
be deferred during any time period the person is enrolled at 
least one-half time in an advanced degree program in a field 
that leads to employment by a school district.  To defer loan 
obligations, the person shall provide written notification to 
the state board of education and the recipients of the joint 
grant that originally authorized the loan.  Upon approval by the 
state board and the joint grant recipients, payments shall be 
deferred.  
     The loan forgiveness program, loan deferral, and procedures 
to administer the program shall be approved by the higher 
education coordinating board. 
    Subd. 8.  [REVOLVING FUND.] The Indian teacher preparation 
loan repayment revolving account is established in the state 
treasury.  Any amounts repaid or contributed by a teacher who 
received a scholarship or loan under this program shall be 
deposited in the account.  All money in the account is annually 
appropriated to the state board of education and shall be used 
to enable Indian students to participate in the program. 
    Sec. 18.  Minnesota Statutes 1990, section 126.51, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [RESOLUTION OF CONCURRENCE.] Each year by 
September 15 and June 15 of each school year December 1, the 
school board or American Indian school shall submit to the 
department of education a copy of a resolution adopted by the 
parent committee.  The copy must be signed by the chair of the 
committee and must state whether the committee concurs with the 
educational programs for American Indian children offered by the 
school board or American Indian school.  If the committee does 
not concur with the educational programs, the reasons for 
nonconcurrence and recommendations shall be submitted with the 
resolution.  By resolution, the school board shall respond, in 
cases of nonconcurrence, to each recommendation made by the 
committee and state its reasons for not implementing the 
recommendations. 
    Sec. 19.  [127.281] [EXCLUSION AND EXPULSION OF HANDICAPPED 
PUPILS.] 
    When a pupil who has an individual education plan is 
excluded or expelled under sections 127.26 to 127.39 for 
misbehavior that is not a manifestation of the pupil's 
handicapping condition, the district shall provide special 
education and related services after a period of suspension, if 
suspension is imposed.  The district shall initiate a review of 
the pupil's individual education plan within ten days of the 
commencement of an expulsion, exclusion, or a suspension of ten 
days or more. 
    Sec. 20.  [128B.011] [PINE POINT SCHOOL GOVERNANCE AND 
STANDARDS.] 
    Subdivision 1.  [GOVERNANCE.] The care, management, and 
control of Pine Point school is vested in the White Earth 
reservation tribal council.  The council has the same powers and 
duties as a school board under chapters 120 to 129 and other 
provisions applicable to school boards.  The tribal council may 
delegate powers and duties for the operation of the school to 
the Indian education committee.  The committee may exercise 
powers and duties delegated to it. 
    Subd. 2.  [STANDARDS.] The school is a public school 
providing instruction for pupils in kindergarten through the 8th 
grade.  Instruction shall meet the same standards for 
instruction as are required for other public schools. 
    Subd. 3.  [COOPERATION WITH SCHOOL DISTRICTS.] If the 
council determines it cannot adequately provide certain 
services, the council shall purchase or share services with one 
or more school districts or other provider for instruction, 
administration, or other requirements of operating the school, 
including curriculum, teachers, support services, supervision, 
administration, financial accounting and reporting, and other 
instructional and noninstructional programs.  The council is 
encouraged to cooperate with school districts to increase and 
improve instructional and support services available to the 
pupils in the school. 
    Sec. 21.  Minnesota Statutes 1990, section 128B.03, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [STATE REVENUES.] The state shall pay to the 
council for the support of the school all aids, revenues, and 
grants available to a school district as though the school were 
a school district.  The aids, revenues, and grants include, but 
are not limited to, the following: 
    (1) general education revenue, as defined in section 
124A.22, subdivision 1, including at least compensatory revenue; 
    (2) transportation revenue; 
    (3) capital expenditure facilities revenue; 
    (4) capital expenditure equipment revenue; 
    (5) special education revenue; 
    (6) limited English proficiency aid; 
    (7) career teacher aid; 
    (8) assurance of mastery revenue; 
    (9) school lunch revenue; 
    (10) school milk revenue; 
    (11) health and safety revenue; 
    (12) Indian language and culture grants; 
    (13) arts planning grants; and 
    (14) all other aids, revenues, or grants available to a 
school district. 
    If there are eligibility requirements for an aid, revenue, 
or grant, the requirements shall be met in order to obtain the 
aid, revenue, or grant, except that a requirement to levy shall 
be waived.  To compute the amount of aid, revenue, or grant 
requiring a levy, the amount of the levy shall be zero. 
    If a school district obtains revenue from the proceeds of a 
levy, the council shall be deemed to have levied and the state 
shall pay aid equal to the amount that would have been levied.  
The amount shall be approved by the commissioner of education. 
    The proceeds of any aid, grant, or revenue shall be used 
only as provided in the applicable statute. 
    Sec. 22.  Minnesota Statutes 1990, section 128B.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISTRICT 309 FEDERAL AID.] (a) The school board 
of independent school district No. 309 must transfer to the 
council, to the extent permissible, any federal aids or grants 
which the school district is eligible for or entitled to because 
of: 
    (1) the population in the experimental school attendance 
area; 
    (2) the pupils actually attending the experimental school; 
    (3) the program of the experimental school; 
    (4) the boundaries of the attendance area of the 
experimental school; or 
    (5) a related reason. 
    (b) For the sole purpose of receiving federal impact aid, 
the experimental school on the land comprising the former 
independent school district No. 25 is a local education agency, 
according to Code of Federal Regulations, title 34, section 
222.80.  The school and the land must not be included, for the 
purpose of determining federal impact aid, in independent school 
district No. 309. 
    Sec. 23.  Minnesota Statutes 1990, section 128B.03, 
subdivision 5, is amended to read: 
    Subd. 5.  [AUDITS; STATE AUDITOR LAW.] The council must 
have an audit done annually of the accounts of the experimental 
school.  The audit must be finished within one year after the 
year for which the audit is made.  The council is subject to 
chapter 6, relating to the state auditor. 
    Sec. 24.  Minnesota Statutes 1990, section 128B.03, 
subdivision 7, is amended to read: 
    Subd. 7.  [INSURANCE.] The council may buy the insurance 
specified in sections 123.35, subdivision 13, and 123.41.  The 
council must buy insurance to the extent required by chapter 466 
and is not liable beyond the extent provided by section 466.12, 
subdivision 3a chapter 466.  The term "average number of pupils" 
in section 466.12, subdivision 3a, means, for this subdivision, 
the average number of pupils attending the experimental school. 
    Sec. 25.  Minnesota Statutes 1990, section 128B.04, is 
amended to read: 
    128B.04 [ALL PUPILS IN AREA ARE RESIDENT PUPILS.] 
    For chapter 120, A pupil in kindergarten through 8th grade 
who resides within former independent school district No. 25 is 
a resident pupil of the experimental school attendance area, as 
if the area were a school district for the purposes of chapter 
120.  Pupils enrolled in the school may not be counted by 
independent school district No. 309 for the purposes of 
receiving revenue according to chapters 120 to 129. 
    Sec. 26.  Minnesota Statutes 1990, section 128B.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [COUNCIL TEACHERS ARE UNIT.] Teachers employed by 
the council are employees of the experimental school council and 
are an "appropriate unit" or a "unit" under chapter 179A, 
notwithstanding section 179A.03, subdivision 2. 
    Sec. 27.  Minnesota Statutes 1990, section 128B.05, 
subdivision 3, is amended to read: 
    Subd. 3.  [DISTRICT 309 TEACHERS.] Teachers employed by the 
school board of independent school district No. 309 who are 
assigned by the board to the experimental school remain 
employees of the board. 
    Sec. 28.  Minnesota Statutes 1990, section 128B.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [EDUCATION CODE.] The management of the 
experimental school by the council is governed by the education 
code and other law affecting public school districts. 
    Sec. 29.  Minnesota Statutes 1990, section 128B.08, is 
amended to read: 
    128B.08 [REPORTS TO LEGISLATURE.] 
    Before December 1 of each year the council must submit a 
report to the legislature on the experimental school established 
by this chapter.  The report must document the success or 
failure of the experimental school. 
    Sec. 30.  Minnesota Statutes 1990, section 128B.09, is 
amended to read: 
    128B.09 [END OF EXPERIMENT; TRANSFER BACK TO DISTRICT 309.] 
    At any time before July 1, 1991, the experimental status of 
The school may be ended on closed by unanimous vote of the 
officers of the tribal council and 30 days' notice to the school 
board of independent school district No. 309 effective June 30 
of any year.  Then The school board of independent school 
district No. 309 must resume management of the entire 
district shall assume responsibility for the pupils in the 
school on the next July 1. 
    Sec. 31.  Minnesota Statutes 1990, section 128B.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [EXTENSION.] This chapter is repealed July 
1, 1991 1993. 
    Sec. 32.  Minnesota Statutes 1990, section 128B.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE AUDIT.] The state auditor shall conduct an 
audit of the school's finances for each even-numbered fiscal 
years 1989 and 1990 year without charge to the school.  A 
preliminary or, if completed, a final The report for fiscal year 
1989 of each audit shall be submitted by February 15, 1990, to 
the White Earth reservation tribal council, the Pine Point 
Indian education committee, and the commissioner of education 
committees of the legislature, and the legislative reference 
library.  
    Sec. 33.  [CAPITAL EXPENDITURE REVENUE TRANSFER.] 
    Independent school district No. 309, Park Rapids, shall pay 
to the White Earth reservation tribal council capital 
expenditure facilities revenue and capital expenditure equipment 
revenue that the school district received as a result of 
including the pupils enrolled in Pine Point school in the school 
district's pupil count for those revenues.  By June 30, 1991, 
Park Rapids shall pay the amount attributable to fiscal years 
1988, 1989, 1990, and 1991.  The amounts attributable to fiscal 
years before 1988 shall be paid according to a schedule agreed 
upon by the tribal council and the school board.  The amounts to 
be paid shall reflect total revenue and not state aid.  
    Upon request of the tribal council or the school district, 
the amounts to be paid shall be approved by the state board of 
education. 
    Sec. 34.  [STATE AUDITOR'S BILLING FOR PINE POINT SCHOOL.] 
    The state auditor may not bill the White Earth tribal 
council or the Pine Point Indian education committee for the 
costs or expenses of audits conducted of the school's finances 
for fiscal years 1989 and 1990.  Any bills for the audits shall 
not be paid by the tribal council or the Indian education 
committee. 
    Sec. 35.  [ESTABLISHMENT OF REVOLVING FUND AND 
APPLICABILITY OF LOAN REPAYMENTS.] 
    All loan repayments made by a person according to Laws 
1989, chapter 329, article 3, section 22, shall be deposited in 
the Indian teacher preparation loan repayment revolving fund by 
the commissioner of finance. 
    Sec. 36.  [1992 SPECIAL EDUCATION LEVY ADJUSTMENT.] 
    A district's maximum special education levy for fiscal year 
1992 equals the district's special education levy revenue for 
fiscal year 1992 according to the provisions in this article for 
special education levy equalization revenue.  A district may 
levy for taxes payable in 1992 an amount equal to the difference 
between its maximum special education levy for fiscal year 1992 
and the amount it levied for taxes payable in 1991 under 
Minnesota Statutes 1990, section 275.125, subdivision 8c.  
Notwithstanding Minnesota Statutes, section 121.904, the entire 
amount of this levy shall be recognized as revenue for fiscal 
year 1992. 
     Sec. 37.  [INDIVIDUALIZED LEARNING AND DEVELOPMENT AID.] 
    Notwithstanding Minnesota Statutes, section 124.332, 
subdivision 1, a district may submit its instructor learner 
ratio to the commissioner for the 1991-1992 school year by 
August 1, 1991. 
    Sec. 38.  [INSTRUCTION TO THE REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes shall delete each term in column A and insert the term 
in column B wherever the terms in column A appear within the 
education code. 
     Column A                          Column B             
Handicapped children          Children with a disability    
Handicapping conditions       Disabling conditions          
Handicapped pupil             Pupil with a disability       
Nonhandicapped pupil          Pupil without a disability    
Nonhandicapped children       Children without a disability 
Handicapped student           Pupil with a disability       
Handicapped child             Child with a disability       
Children with handicaps       Children with disabilities    
Handicapped youth             Youth with a disability       
Handicapped individuals       Individuals with a disability
    Sec. 39.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid according to Minnesota Statutes, section 124.32: 
     $167,105,000     .....     1992 
     $167,238,000     .....     1993 
    The 1992 appropriation includes $24,996,000 for 1991 and 
$142,109,000 for 1992. 
    The 1993 appropriation includes $25,078,000 for 1992 and 
$142,160,000 for 1993. 
    Subd. 3.  [SPECIAL PUPIL AID.] For special education aid 
according to Minnesota Statutes, section 124.32, subdivision 6, 
for pupils with handicaps placed in residential facilities 
within the district boundaries for whom no district of residence 
can be determined: 
     $395,000     .....     1992 
     $436,000     .....     1993 
    If the appropriation for either year is insufficient, the 
appropriation for the other year is available.  If the 
appropriations for both years are insufficient, the 
appropriation for special education aid may be used to meet the 
special pupil obligations. 
    Subd. 4.  [SUMMER SPECIAL EDUCATION AID.] For special 
education summer program aid according to Minnesota Statutes, 
section 124.32, subdivision 10: 
     $4,885,000     .....     1992
     $4,865,000     .....     1993 
    The 1992 appropriation is for 1991 summer programs. 
    The 1993 appropriation is for 1992 summer programs. 
    Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
teacher travel for home-based services according to Minnesota 
Statutes, section 124.32, subdivision 2b: 
     $66,000     .....     1992 
     $71,000     .....     1993 
    The 1992 appropriation includes $7,000 for 1991 and $59,000 
for 1992. 
    The 1993 appropriation includes $10,000 for 1992 and 
$61,000 for 1993. 
    Subd. 6.  [RESIDENTIAL FACILITIES AID.] For residential 
facilities aid under aid according to Minnesota Statutes, 
section 124.32, subdivision 5: 
     $2,315,000     .....     1992 
     $2,535,000     .....     1993 
    Subd. 7.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
For aid to educational programs for pupils of limited English 
proficiency according to Minnesota Statutes, section 124.273: 
     $3,853,000     .....     1992 
     $3,994,000     .....     1993 
    The 1992 appropriation includes $512,000 for 1991 and 
$3,341,000 for 1992. 
    The 1993 appropriation includes $589,000 for 1992 and 
$3,405,000 for 1993. 
    Subd. 8.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
GRANTS.] For American Indian post-secondary preparation grants 
according to Minnesota Statutes, section 124.481: 
     $857,000     .....     1992
     $857,000     .....     1993
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 9.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
For grants to American Indian language and culture education 
programs according to Minnesota Statutes, section 126.54, 
subdivision 1: 
     $591,000     .....     1992
     $590,000     .....     1993
    The 1992 appropriation includes $89,000 for 1991 and 
$502,000 for 1992. 
    The 1993 appropriation includes $88,000 for 1992 and 
$502,000 for 1993. 
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 10.  [SECONDARY VOCATIONAL; PUPILS WITH 
DISABILITIES.] For aid for secondary vocational education for 
pupils with disabilities according to Minnesota Statutes, 
section 124.574: 
     $4,691,000     .....     1992 
     $4,652,000     .....     1993 
    The 1992 appropriation includes $729,000 for 1991 and 
$3,962,000 for 1992. 
    The 1993 appropriation includes $699,000 for 1992 and 
$3,953,000 for 1993. 
    Subd. 11.  [ASSURANCE OF MASTERY.] For assurance of mastery 
aid according to Minnesota Statutes, section 124.311: 
     $12,410,000     .....     1992 
     $12,784,000     .....     1993 
    The 1992 appropriation includes $1,751,000 for 1991 and 
$10,659,000 for 1992. 
    The 1993 appropriation includes $1,881,000 for 1992 and 
$10,903,000 for 1993.  
    Subd. 12.  [INDIVIDUALIZED LEARNING AND DEVELOPMENT AID.] 
For individualized learning and development aid according to 
Minnesota Statutes, section 124.331: 
     $11,325,000     .....     1992
     $15,892,000     .....     1993
    The 1992 appropriation includes $1,068,000 for 1991 and 
$10,257,000 for 1992. 
    The 1993 appropriation includes $1,810,000 for 1992 and 
$14,082,000 for 1993. 
    Subd. 13.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
education levy equalization aid according to section 9: 
     $9,215,000     .....     1993
    This appropriation is based on a formula entitlement of 
$10,841,000. 
    Subd. 14.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
Indian scholarships according to Minnesota Statutes, section 
124.48: 
     $1,600,000     .....     1992 
     $1,600,000     .....     1993 
    Any unexpended balance remaining in the first year does not 
cancel but is available in the second year. 
    Subd. 15.  [AMERICAN INDIAN EDUCATION.] For certain 
American Indian education programs in school districts: 
     $175,000     .....     1992
     $175,000     .....     1993
    The 1992 appropriation includes $26,000 for 1991 and 
$149,000 for 1992. 
    The 1992 appropriation includes $26,000 for 1992 and 
$149,000 for 1993. 
    These appropriations are available for expenditure with the 
approval of the commissioner of education. 
    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. 
    Up to the following amounts may be distributed to the 
following schools and school districts for each fiscal year:  
$54,800 to Pine Point School; $9,700 to independent school 
district No. 166; $14,900 to independent school district No. 
432; $14,100 to independent school district No. 435; $42,200 to 
independent school district No. 707; and $39,100 to independent 
school district No. 38.  These amounts shall be spent only for 
the benefit of American Indian pupils and to meet established 
state educational standards or statewide requirements. 
    Before a district or school can receive money under this 
subdivision, the district or school must submit to the 
commissioner of education evidence that it has complied with the 
uniform financial accounting and reporting standards act, 
Minnesota Statutes, sections 121.90 to 121.917. 
    Subd. 16.  [INDIAN TEACHER PREPARATION GRANTS.] For joint 
grants to assist Indian people to become teachers: 
     $190,000     .....     1992 
     $190,000     .....     1993 
    Up to $70,000 each year is for a joint grant to the 
University of Minnesota at Duluth and the Duluth school district.
    Up to $40,000 each year is for a joint grant to each of the 
following: 
    (1) Bemidji state university and the Red Lake school 
district; 
    (2) Moorhead state university and a school district located 
within the White Earth reservation; and 
    (3) Augsburg college and the Minneapolis school district. 
    Money not used for students at one location may be 
transferred for use at another location. 
    Any unexpended balance remaining the first year does not 
cancel but is available in the second year. 
    Subd. 17.  [TRIBAL CONTRACT SCHOOLS.] 
    For tribal contract school aid according to Minnesota 
Statutes, section 124.86: 
     $600,000     .....     1992
     $600,000     .....     1993
    Subd. 18.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
SCHOOLS.] For early childhood family education programs at 
tribal contract schools: 
     $68,000     .....     1992 
     $68,000     .....     1993 
    Subd. 19.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
secondary vocational education aid according to Minnesota 
Statutes, section 124.573: 
     $11,452,000     .....     1992 
     $11,977,000     .....     1993 
    The 1992 appropriation includes $1,758,000 for 1991 and 
$9,694,000 for 1992. 
    The 1993 appropriation includes $1,710,000 for 1992 and 
$10,267,000 for 1993. 
    Subd. 20.  [COMMUNITY LIVING PROGRAMS FOR YOUTHS WITH 
DISABILITIES.] For grants throughout the state to develop 
programs to provide education-to-community living services for 
youths with disabilities: 
     $500,000     .....     1992
    The appropriation shall be available until June 30, 1993. 
    Sec. 40.  [REPEALER.] 
    Minnesota Statutes 1990, sections 128B.01; 128B.03, 
subdivisions 3 and 8; 128B.07; and 275.125, subdivision 8c, are 
repealed. 
    Sec. 41.  [EFFECTIVE DATE.] 
    Section 9 is effective for revenue for fiscal year 1993 and 
thereafter.  Section 17, subdivision 8, is effective the day 
following final enactment. 

                                ARTICLE 4

                           COMMUNITY SERVICES
    Section 1.  Minnesota Statutes 1990, section 121.88, 
subdivision 9, is amended to read: 
    Subd. 9.  [YOUTH SERVICE PROGRAMS.] A school board may 
offer, as part of a community education program with a youth 
development program, a youth service program for pupils to 
promote active citizenship and to address community needs 
through youth service.  The school board may award up to one 
credit, or the equivalent, toward graduation for a pupil who 
completes the youth service requirements of the district.  The 
community education advisory council shall design the program in 
cooperation with the district planning, evaluating and reporting 
committee and local organizations that train volunteers or need 
volunteers' services.  Programs must include: 
    (1) preliminary training for pupil volunteers conducted, 
when possible, by organizations experienced in such training; 
    (2) supervision of the pupil volunteers to ensure 
appropriate placement and adequate learning opportunity; 
    (3) sufficient opportunity, in a positive setting for human 
development, for pupil volunteers to develop general skills in 
preparation for employment, to enhance self esteem and self 
worth, and to give genuine service to their community; and 
    (4) integration of academic learning with the service 
experience; and 
    (5) integration of youth community service with elementary 
and secondary curriculum. 
    Youth service projects include, but are not limited to, the 
following: 
    (1) human services for the elderly, including home care and 
related services; 
    (2) tutoring and mentoring; 
    (3) training for and providing emergency services; 
    (4) services at extended day programs; and 
    (5) environmental services. 
    The commissioner shall maintain a list of acceptable 
projects with a description of each project.  A project that is 
not on the list must be approved by the commissioner.  
    A youth service project must have a community sponsor that 
may be a governmental unit or nonprofit organization.  To assure 
that pupils provide additional services, each sponsor must 
assure that pupil services do not displace employees or reduce 
the workload of any employee. 
    The commissioner must assist districts in planning youth 
service programs, implementing programs, and developing 
recommendations for obtaining community sponsors. 
    Sec. 2.  Minnesota Statutes 1990, section 121.88, 
subdivision 10, is amended to read: 
    Subd. 10.  [EXTENDED DAY PROGRAMS.] A school board may 
offer, as part of a community education program, an extended day 
program for children from kindergarten through grade 6 for the 
purpose of expanding students' learning opportunities.  A 
program must include the following: 
    (1) adult supervised programs while school is not in 
session; 
    (2) parental involvement in program design and direction; 
    (3) partnerships with the K-12 system, and other public, 
private, or nonprofit entities; and 
    (4) opportunities for trained secondary school pupils to 
work with younger children in a supervised setting as part of a 
community service program. 
    The district may charge a sliding fee based upon family 
income for extended day programs.  The district may receive 
money from other public or private sources for the extended day 
program.  The school board of the district shall develop 
standards for school age child care programs.  Districts with 
programs in operation before July 1, 1990, must adopt standards 
before October 1, 1991.  All other districts must adopt 
standards within one year after the district first offers 
services under a program authorized by this subdivision.  The 
state board of education may not adopt rules for extended day 
programs. 
    Sec. 3.  Minnesota Statutes 1990, section 121.882, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood family 
education programs are programs for children in the period of 
life from birth to kindergarten, for the parents of such 
children, and for expectant parents.  The programs may include 
the following:  
    (1) programs to educate parents about the physical, mental, 
and emotional development of children; 
    (2) programs to enhance the skills of parents in providing 
for their children's learning and development; 
    (3) learning experiences for children and parents; 
    (4) activities designed to detect children's physical, 
mental, emotional, or behavioral problems that may cause 
learning problems; 
    (5) activities and materials designed to encourage 
self-esteem, skills, and behavior that prevent sexual and other 
interpersonal violence; 
    (6) educational materials which may be borrowed for home 
use; 
    (7) information on related community resources; or 
    (8) other programs or activities to improve the health, 
development, and learning readiness of children.  
    The programs shall not include activities for children that 
do not require substantial involvement of the children's 
parents.  The programs shall be reviewed periodically to assure 
the instruction and materials are not racially, culturally, or 
sexually biased.  The programs shall encourage parents to be 
aware of practices that may affect equitable development of 
children. 
    Sec. 4.  Minnesota Statutes 1990, section 121.882, 
subdivision 6, is amended to read: 
    Subd. 6.  [COORDINATION.] A district is encouraged to 
coordinate the program with its special education and vocational 
education programs and with related services provided by other 
governmental agencies and nonprofit agencies.  
    A district is encouraged to coordinate adult basic 
education programs provided to parents and early childhood 
family education programs provided to children to accomplish the 
goals of section 124C.61.  
    Sec. 5.  Minnesota Statutes 1990, section 121.882, is 
amended by adding a subdivision to read: 
    Subd. 7a.  [ALTERNATIVE COUNCIL.] A school board may direct 
the community education council, required according to section 
121.88, subdivision 2, to perform the functions of the advisory 
council for early childhood family education. 
    Sec. 6.  Minnesota Statutes 1990, section 123.702, is 
amended to read: 
    123.702 [SCHOOL BOARD RESPONSIBILITIES.] 
    Subdivision 1.  Every school board shall provide for a 
voluntary mandatory program of early childhood health and 
developmental screening for children once before entering 
kindergarten who are four years old and older but who have not 
entered kindergarten or first grade in a public school.  This 
screening program shall be established either by one board, by 
two or more boards acting in cooperation, by educational 
cooperative service units, by early childhood family education 
programs, or by other existing programs.  No school board may 
make This screening examination is a mandatory prerequisite to 
enroll enrolling a student in kindergarten or first grade in a 
public school.  A child need not submit to developmental 
screening provided by a school board if the child's health 
records indicate to the school board that the child has received 
comparable developmental screening from a public or private 
health care organization or individual health care provider.  
The school districts are encouraged to reduce the costs of 
preschool health developmental screening programs by utilizing 
volunteers in implementing the program.  
    Subd. 1a.  A child must not be enrolled in this state in a 
public school until the parent or guardian of the child submits 
to the school principal or other person having general control 
and supervision of the school a record indicating the months and 
year the child received developmental screening and the results 
of the screening.  If a child is transferred from one 
kindergarten to another or from one first grade to another, the 
parent or guardian of the child must be allowed 30 days to 
submit the child's record, during which time the child may 
attend school. 
    Subd. 1a 1b.  A screening program shall include at least 
the following components to the extent the school board 
determines they are financially feasible:  developmental 
assessments, hearing and vision screening or referral, review of 
health history and immunization status review and referral, and 
assessments of height and weight review of any special family 
circumstances that might affect development, identification of 
additional risk factors that may influence learning, an 
interview with the parent about the child, and referral for 
assessment, diagnosis, and treatment when potential needs are 
identified.  All screening components shall be consistent with 
the standards of the state commissioner of health for early and 
periodic developmental screening programs.  No child shall be 
required to submit to any component of this screening program to 
be eligible for any other component.  No developmental screening 
program shall provide laboratory tests, a health history or a 
physical examination to any child who has been provided with 
those laboratory tests or a health history or physical 
examination within the previous 12 months.  The school district 
shall request from the public or private health care 
organization or the individual health care provider the results 
of any laboratory test, health history or physical examination 
within the 12 months preceding a child's scheduled 
screening clinic.  If a child is without health coverage, the 
school district shall refer the child to an appropriate health 
care provider.  A school board may offer additional components 
such as nutritional, physical and dental assessments, blood 
pressure, and laboratory tests.  State aid shall not be paid for 
additional components. 
    Subd. 2.  If any child's screening indicates a condition 
which requires diagnosis or treatment, the child's parents shall 
be notified of the condition and the school board shall ensure 
that an appropriate follow-up and referral process is available, 
in accordance with procedures established pursuant to section 
123.703, subdivision 1. 
    Subd. 3.  The school board shall actively encourage 
participation inform each resident family with a child eligible 
to participate in the developmental screening program about the 
availability of the program and the state's requirement that a 
child receive developmental screening before enrolling in 
kindergarten or first grade in a public school. 
    Subd. 4.  Every A school board shall may contract with or 
purchase service from an approved early and periodic 
developmental screening program in the area wherever 
possible.  Developmental screening must be conducted by an 
individual who is licensed as, or has the training equal to, a 
special education teacher, school psychologist, kindergarten 
teacher, prekindergarten teacher, school nurse, public health 
nurse, registered nurse, or physician.  The individual may be a 
volunteer.  
    Subd. 4a.  The school district shall provide the parent or 
guardian of the child screened with a record indicating the 
month and year the child received developmental screening and 
the results of the screening.  The district shall keep a 
duplicate copy of the record of each child screened. 
    Subd. 5.  Every school board shall integrate and utilize 
volunteer screening programs in implementing sections 123.702 to 
123.704 123.705 wherever possible. 
    Subd. 6.  A school board may contract with health care 
providers to operate the screening programs and shall consult 
with local societies of health care providers. 
    Subd. 7.  In selecting personnel to implement the screening 
program, the school district shall give priority first to 
qualified volunteers and second to other persons possessing the 
minimum qualifications required by the rules adopted by the 
state board of education and the commissioner of health.  
    Sec. 7.  [123.7045] [DEVELOPMENTAL SCREENING AID.] 
    Each school year, the state shall pay a school district $25 
for each child screened according to the requirements of section 
123.702.  
    Sec. 8.  Minnesota Statutes 1990, section 124.26, 
subdivision 1c, is amended to read: 
    Subd. 1c.  [PROGRAM APPROVAL.] To receive aid under this 
section, a district must submit an application by June 1 
describing the program, on a form provided by the department.  
The program must be approved by the commissioner according to 
the following criteria:  
    (1) how the needs of different levels of learning will be 
met; 
    (2) for continuing programs, an evaluation of results; 
    (3) anticipated number and education level of participants; 
    (4) coordination with other resources and services; 
    (5) participation in a consortium, if any, and money 
available from other participants; 
    (6) management and program design; 
    (7) volunteer training and use of volunteers; 
    (8) staff development services; 
    (9) program sites and schedules; and 
    (10) program expenditures that qualify for aid.  
    The commissioner may contract with a private, nonprofit 
organization to provide services that are not offered by a 
district or that are supplemental to a district's program.  The 
program provided under a contract must be approved according to 
the same criteria used for district programs. 
    Adult basic education programs may be approved under this 
subdivision for up to two years.  Two-year program approval 
shall be granted to an applicant who has demonstrated the 
capacity to: 
    (1) offer comprehensive learning opportunities and support 
service choices appropriate for and accessible to adults at all 
basic skill need levels; 
    (2) provide a participatory and experimental learning 
approach based on the strengths, interests, and needs of each 
adult, that enables adults with basic skill needs to: 
    (i) identify, plan for, and evaluate their own progress 
toward achieving their defined educational and occupational 
goals; 
    (ii) master the basic academic reading, writing, and 
computational skills, as well as the problem-solving, decision 
making, interpersonal effectiveness, and other life and learning 
skills they need to function effectively in a changing society; 
    (iii) locate and be able to use the health, governmental, 
and social services and resources they need to improve their own 
and their families' lives; and 
    (iv) continue their education, if they desire, to at least 
the level of secondary school completion, with the ability to 
secure and benefit from continuing education that will enable 
them to become more employable, productive, and responsible 
citizens; 
    (3) plan, coordinate, and develop cooperative agreements 
with community resources to address the needs that the adults 
have for support services, such as transportation, flexible 
course scheduling, convenient class locations, and child care; 
    (4) collaborate with business, industry, labor unions, and 
employment-training agencies, as well as with family and 
occupational education providers, to arrange for resources and 
services through which adults can attain economic 
self-sufficiency; 
    (5) provide sensitive and well trained adult education 
personnel who participate in local, regional, and statewide 
adult basic education staff development events to master 
effective adult learning and teaching techniques; 
    (6) participate in regional adult basic education peer 
program reviews and evaluations; and 
    (7) submit accurate and timely performance and fiscal 
reports. 
    Sec. 9.  Minnesota Statutes 1990, section 124.26, 
subdivision 2, is amended to read: 
    Subd. 2.  Each district or group of districts providing 
adult basic and continuing education programs shall establish 
and maintain accounts separate from all other district accounts 
for the receipt and disbursement of all funds related to these 
programs.  All aid received pursuant to this section shall be 
utilized solely for the purposes of adult basic and continuing 
education programs.  In no case shall federal and state aid 
equal more than 90 percent of the actual cost of providing these 
programs. 
    Sec. 10.  [124.2601] [ADULT BASIC EDUCATION REVENUE.] 
    Subdivision 1.  [FULL-TIME EQUIVALENT.] In this section 
"full-time equivalent" means 408 contact hours for a student at 
the adult secondary instructional level and 240 contact hours 
for a student at a lower instructional level.  "Full-time 
equivalent" for an English as a second language student means 
240 contact hours. 
    Subd. 2.  [PROGRAMS FUNDED.] Adult basic education programs 
established under section 124.26 and approved by the 
commissioner are eligible for revenue under this section. 
    Subd. 3.  [AID.] Adult basic education aid for each 
district with an eligible program equals 65 percent of the 
general education formula allowance times the number of 
full-time equivalent students in its adult basic education 
program. 
    Subd. 4.  [LEVY.] A district with an eligible program may 
levy an amount not to exceed the amount raised by .21 percent 
times the adjusted tax capacity of the district for the 
preceding year. 
    Subd. 5.  [REVENUE.] Adult basic education revenue is equal 
to the sum of a district's adult basic education aid and its 
adult basic education levy. 
    Subd. 6.  [AID GUARANTEE.] Any adult basic education 
program that receives less state aid under subdivision 3 than 
from the aid formula for fiscal year 1992 shall receive the 
amount of aid it received in fiscal year 1992. 
    Subd. 7.  [PRORATION.] If the total appropriation for adult 
basic education aid is insufficient to pay all districts the 
full amount of aid earned, the department of education shall 
proportionately reduce each district's aid. 
    Sec. 11.  [124.2605] [GED TEST FEES.] 
    The commissioner of education shall pay 60 percent of the 
costs of a GED test taken by an eligible individual. 
    Sec. 12.  Minnesota Statutes 1990, section 124.261, is 
amended to read: 
    124.261 [ADULT HIGH SCHOOL GRADUATION AID.] 
    Subdivision 1.  [AID ELIGIBILITY.] Adult high school 
graduation aid for eligible pupils age 21 or over, equals 65 
percent of the general education formula allowance times 1.35 
1.30 times the average daily membership under section 124.17, 
subdivision 2e.  Adult high school graduation aid must be paid 
in addition to any other aid to the district.  Pupils age 21 or 
over may not be counted by the district for any purpose other 
than adult high school graduation aid. 
    Subd. 2.  [AID FOLLOWS PUPIL.] Adult high school graduation 
aid accrues to the account and the fund of the eligible 
programs, under section 126.22, subdivision 3, that serve adult 
diploma students. 
    Sec. 13.  Minnesota Statutes 1990, section 124.2711, is 
amended to read: 
    124.2711 [EARLY CHILDHOOD FAMILY EDUCATION AID REVENUE.] 
    Subdivision 1.  [MAXIMUM REVENUE.] (a) The maximum revenue 
for early childhood family education programs for the 1989 and 
1990 fiscal years for a school district is the amount of revenue 
derived by multiplying $84.50 times the greater of 150 or the 
number of people under five years of age residing in the school 
district on September 1 of the preceding school year. 
    (b) For 1991 and later fiscal years, The maximum revenue 
for early childhood family education programs for a school 
district is the amount of revenue earned by multiplying 
$87.75 $96.50 for fiscal year 1992 or $101.25 for fiscal year 
1993 times the greater of: 
    (1) 150; or 
    (2) the number of people under five years of age residing 
in the school district on September 1 of the last school year. 
    Subd. 2.  [POPULATION.] For the purposes of subdivision 1, 
data reported to the department of education according to the 
provisions of section 120.095 may be used to determine the 
number of people under five years of age residing in the 
district.  The commissioner, with the assistance of the state 
demographer, shall review the number reported by any district 
operating an early childhood family education program.  If 
requested, the district shall submit to the commissioner an 
explanation of its methods and other information necessary to 
document accuracy.  If the commissioner determines that the 
district has not provided sufficient documentation of accuracy, 
the commissioner may request the state demographer to prepare an 
estimate of the number of people under five years of age 
residing in the district and may use this estimate for the 
purposes of subdivision 1.  
    Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
obtain early childhood family education revenue, a district may 
levy an amount equal to the tax rate of .596 percent times the 
adjusted tax capacity of the district for the year preceding the 
year the levy is certified.  If the amount of the early 
childhood family education levy would exceed the early childhood 
family education revenue, the early childhood family education 
levy shall equal the early childhood family education revenue. 
    Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] If a 
district complies with the provisions of section 121.882, it 
shall receive early childhood family education aid equal to: 
    (a) the difference between the maximum early childhood 
family education revenue, according to subdivision 1, and 
the permitted early childhood family education levy attributable 
to the same school year, according to section 275.125, 
subdivision 8b, times 
    (b) the ratio of the district's actual levy to its 
permitted levy attributable to the same school year, according 
to section 275.125, subdivision 8b.  
    In fiscal year 1990 only, a district receiving early 
childhood family education aid under this subdivision or levy 
under section 275.125, subdivision 8b, shall receive an 
additional amount of aid equal to $.95 times the greater of 150 
or the number of people under five years of age residing in the 
district on September 1 of the last school year.  If the 
district does not levy the entire amount permitted, the early 
childhood family education aid shall be reduced in proportion to 
the actual amount levied. 
    Subd. 4.  [USE OF REVENUE RESTRICTED.] The proceeds of the 
aid authorized by this section and the levy authorized by 
section 275.125, subdivision 8b, shall Early childhood family 
education revenue may be used only for early childhood family 
education programs.  Not more than five percent of early 
childhood family education revenue may be used to administer 
early childhood family education programs.  The increase in 
revenue for fiscal years 1992 and 1993 shall be used to: 
    (1) increase participation of families so that the total 
participation in early childhood family education programs in 
the district more nearly reflects the demographic, racial, 
cultural, and ethnic diversity of the district; and 
    (2) provide programs for families who, because of poverty 
and other barriers to learning, may need programs designed to 
meet their needs. 
    Sec. 14.  Minnesota Statutes 1990, section 124.2713, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] 
Community education revenue equals the sum of a district's 
general community education revenue, youth development plan 
revenue, and youth service program revenue.  
    Sec. 15.  Minnesota Statutes 1990, section 124.2713, 
subdivision 3, is amended to read: 
    Subd. 3.  [GENERAL COMMUNITY EDUCATION REVENUE.] For fiscal 
year 1991 and thereafter, The general community education 
revenue for a district equals $5.95 times the greater of 1,335 
or the population of the district.  The population of the 
district is determined according to section 275.14.  
    Sec. 16.  Minnesota Statutes 1990, section 124.2713, 
subdivision 5, is amended to read: 
    Subd. 5.  [YOUTH SERVICE REVENUE.] Youth service program 
revenue is available to a district that has implemented a youth 
development plan and a youth service program.  Youth service 
revenue equals 25 75 cents for fiscal year 1992 and 85 cents for 
fiscal year 1993 and thereafter, times the greater of 1,335 or 
the population of the district. 
    Sec. 17.  Minnesota Statutes 1990, section 124.2713, 
subdivision 6, is amended to read: 
    Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
education revenue, a district may levy the amount raised by a 
tax rate of 1.07 percent for fiscal year 1992 and 1.095 percent 
for fiscal year 1993 and thereafter, times the adjusted net tax 
capacity of the district for taxes payable in 1991 and 
thereafter.  If the amount of the community education levy would 
exceed the community education revenue, the community education 
levy shall equal the community education revenue.  
    Sec. 18.  Minnesota Statutes 1990, section 124.2713, 
subdivision 9, is amended to read: 
    Subd. 9.  [USE OF YOUTH SERVICE REVENUE.] Youth development 
service revenue may be used only to implement the a youth 
development plan approved by the school board.  Youth service 
revenue may be used only and to provide a youth service program 
according to section 121.88, subdivision 9. 
    Sec. 19.  Minnesota Statutes 1990, section 124C.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEMBERS; MEETINGS; OFFICERS.] The interagency 
adult learning advisory council shall have 16 20 to 18 22 
members.  Members must have experience in educating adults or in 
programs addressing welfare recipients and incarcerated, 
unemployed, and underemployed people.  
    The members of the interagency adult learning advisory 
council are appointed as follows: 
    (1) one member appointed by the commissioner of the state 
planning agency; 
    (2) one member appointed by the commissioner of jobs and 
training; 
    (3) one member appointed by the commissioner of human 
services; 
    (4) one member appointed by the director of the refugee and 
immigrant assistance division of the department of human 
services; 
    (5) one member appointed by the commissioner of 
corrections; 
    (6) one member appointed by the commissioner of education; 
    (7) one member appointed by the chancellor of the state 
board of technical colleges; 
    (8) one member appointed by the chancellor of community 
colleges; 
    (9) one member appointed by the Minnesota adult literacy 
campaign or by another nonprofit literacy organization, as 
designated by the commissioner of the state planning agency; 
    (10) one member appointed by the council on Black 
Minnesotans; 
    (11) one member appointed by the Spanish-speaking affairs 
council; 
    (12) one member appointed by the council on Asian-Pacific 
Minnesotans; 
    (13) one member appointed by the Indian affairs council; 
and 
    (14) one member appointed by the disability council. 
    Up to four additional members of the council may be 
nominated by the participating agencies.  Based on the council's 
recommendations, the commissioner of the state planning agency 
must appoint at least two six, but not more than four eight, 
additional members.  Nominees shall include, but are not limited 
to, representatives of local education, government, nonprofit 
agencies, employers, labor organizations, and libraries.  
    The council shall elect its officers.  
    Sec. 20.  Minnesota Statutes 1990, section 126.22, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
eligible to participate in the high school graduation incentives 
program:  
    (a) any pupil who is between the ages of 12 and 16, except 
as indicated in clause (6), and who:  
    (1) is at least two grade levels below the performance 
level for pupils of the same age in a locally determined 
achievement test; or 
    (2) is at least one year behind in satisfactorily 
completing coursework or obtaining credits for graduation; or 
    (3) is pregnant or is a parent; or 
    (4) has been assessed as chemically dependent; or 
    (5) has been excluded or expelled according to sections 
127.26 to 127.39; or 
    (6) is between the ages of 12 and 21 and has been referred 
by a school district for enrollment in an eligible program or a 
program pursuant to section 126.23; or 
     (b) any pupil who is between the ages of 16 and 19 who is 
attending school, and who is at least two grade levels below the 
performance level for pupils of the same age in a locally 
determined achievement test, or is at least one year behind in 
obtaining credits for graduation, or is pregnant or is a parent, 
or has been assessed as chemically dependent; or 
     (c) any person between 16 and 21 years of age who has not 
attended a high school program for at least 15 consecutive 
school days, excluding those days when school is not in session, 
and who is at least two grade levels below the performance level 
for pupils of the same age in a locally determined achievement 
test, or is at least one year behind in obtaining credits for 
graduation, or is pregnant or is a parent, or has been assessed 
as chemically dependent; or 
    (d) any person who is at least 21 years of age and who:  
    (1) has received fewer than 14 years of public or nonpublic 
education, beginning at age 5; 
    (2) has already completed the studies ordinarily required 
in the 10th grade but has not completed the requirements for a 
high school diploma or the equivalent; and 
    (3) at the time of application, (i) is eligible for 
unemployment compensation benefits or has exhausted the 
benefits, (ii) is eligible for or is receiving income 
maintenance and support services, as defined in section 
268.0111, subdivision 5, or (iii) is eligible for services under 
the displaced homemaker program, state wage-subsidy program, or 
any programs under the federal Jobs Training Partnership Act or 
its successor.  
    (e) an elementary school pupil who is determined by the 
district of attendance to be at risk of not succeeding in school 
is eligible to participate in the program. 
    Notwithstanding section 127.27, subdivision 7, the 
provisions of section 127.29, subdivision 1, do not apply to a 
pupil under age 21 who participates in the high school 
graduation incentives program.  
    Sec. 21.  Minnesota Statutes 1990, section 126.22, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
according to subdivision 2, clause (a), (b), (c), (d), or (e), 
may enroll in any program approved by the state board of 
education under Minnesota Rules, part 3500.3500, or area 
learning centers under sections 124C.45 to 124C.48, or according 
to section 121.11, subdivision 12. 
    (b) A pupil who is eligible according to subdivision 2, 
clause (b), (c), or (d), may enroll in post-secondary courses 
under section 123.3514. 
    (c) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), (d), or (e), may enroll in any public elementary 
or secondary education program.  However, a person who is 
eligible according to subdivision 2, clause (d), may enroll only 
if the school board has adopted a resolution approving the 
enrollment. 
    (d) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), or (e), may enroll part time or full time in any 
nonprofit, nonpublic, nonsectarian school that has contracted 
with the school district of residence to provide educational 
services.  
    (e) An A pupil who is eligible institution providing 
eligible programs as defined in this under subdivision 2, clause 
(c) or (d), may contract with an entity providing enroll in any 
adult basic education programs approved under section 124.26 and 
operated under the community education program contained in 
section 121.88 for actual program costs. 
    Sec. 22.  Minnesota Statutes 1990, section 126.22, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
least 16 years of age, who is eligible under subdivision 2, 
clause (a), (b), or (c), and who has been enrolled only in a 
public school, if the pupil has been enrolled in any school, 
during the year immediately before transferring under this 
subdivision, may transfer to any nonprofit, nonpublic school 
that has contracted with the school district of residence to 
provide nonsectarian educational services.  Such a school must 
enroll every eligible pupil who seeks to transfer to the school 
under this program subject to available space. 
    Sec. 23.  Minnesota Statutes 1990, section 126.22, 
subdivision 4, is amended to read: 
    Subd. 4.  [PUPIL ENROLLMENT.] Any eligible pupil under 
subdivision 2 may apply to enroll in an eligible program under 
subdivision 3, using the form specified in section 120.0752, 
subdivision 2.  Notwithstanding section 120.0752, Approval of 
the resident district is not required for: 
    (1) an eligible pupil under subdivision 2 to enroll in a 
nonresident district that has an any eligible program in a 
nonresident district under subdivision 3 or an area learning 
center established under section 124C.45; or 
    (2) an eligible pupil under subdivision 2, clause (c) or 
(d), to enroll in an adult basic education program approved 
under section 124.26.  
    Sec. 24.  Minnesota Statutes 1990, section 126.22, 
subdivision 8, is amended to read: 
    Subd. 8.  [ENROLLMENT VERIFICATION.] For a pupil attending 
an eligible program full time under subdivision 3, paragraph 
(d), the department of education shall pay 85 88 percent of the 
basic revenue of the district to the eligible program and 15 12 
percent of the basic revenue to the resident district within 30 
days after the eligible program verifies enrollment using the 
form provided by the department.  For a pupil attending an 
eligible program part time, basic revenue shall be reduced 
proportionately, according to the amount of time the pupil 
attends the program, and the payments to the eligible program 
and the resident district shall be reduced accordingly.  A pupil 
for whom payment is made according to this section may not be 
counted by any district for any purpose other than computation 
of basic revenue, according to section 124A.22, subdivision 2.  
If payment is made for a pupil under this subdivision, a school 
district shall not reimburse a program under section 126.23 for 
the same pupil. 
    Sec. 25.  Minnesota Statutes 1990, section 126.22, is 
amended by adding a subdivision to read: 
    Subd. 9.  [SEVERABILITY.] If for any reason any portion of 
this section is found by a court to be unconstitutional, the 
remaining portions of the section shall remain in effect. 
    Sec. 26.  Minnesota Statutes 1990, section 145.926, is 
amended to read: 
    145.926 [WAY TO GROW/SCHOOL READINESS PROGRAM.] 
    Subdivision 1.  [ADMINISTRATION.] The commissioner of state 
planning shall administer the way to grow/school readiness 
program, in consultation collaboration with the commissioners of 
health, human services and education, to promote intellectual, 
social, emotional, and physical development and school readiness 
of children prebirth to age five six by coordinating and 
improving access to community-based and neighborhood-based 
services that support and assist all parents in meeting the 
health and developmental needs of their children at the earliest 
possible age.  
    Subd. 2.  [PROGRAM COMPONENTS.] (a) A way to grow/school 
readiness program must: 
    (1) collaborate and coordinate delivery of services with 
other community organizations and agencies serving children 
prebirth to age six and their families; 
    (2) target services to families with children prebirth to 
age six with services increasing based on need; 
    (3) build on existing services and coordinate a continuum 
of prebirth to age six essential services, including but not 
limited to prenatal health services, parent education and 
support, and preschool programs; 
    (4) provide strategic outreach efforts to families using 
trained paraprofessionals such as home visitors; and 
    (5) support of neighborhood oriented and culturally 
specific social support, information, outreach, and other 
programs to promote healthy development of children and to help 
parents obtain the information, resources, and parenting skills 
needed to nurture and care for their children. 
     (b) A way to grow/school readiness program may include: 
    (1) a program of home visitors to contact pregnant women 
early in their pregnancies, encourage them to obtain prenatal 
care, and provide social support, information, and referrals 
regarding prenatal care and well-baby care to reduce infant 
mortality, low birth weight, and childhood injury, disease, and 
disability; 
    (2) a program of home visitors to provide social support, 
information, and referrals regarding parenting skills and to 
encourage families to participate in parenting skills programs 
and other family supportive services; 
    (3) support of neighborhood-based or community-based 
parent-child and family resource centers or interdisciplinary 
resource teams to offer supportive services to families with 
preschool children; 
    (4) staff training, technical assistance, and incentives 
for collaboration designed to raise the quality of community 
services relating to prenatal care, child development, health, 
and school readiness; 
    (5) programs to raise general public awareness about 
practices that promote healthy child development and school 
readiness; 
    (6) support of neighborhood oriented and culturally 
specific social support, information, outreach, and other 
programs to promote healthy development of children and to help 
parents obtain the information, resources, and parenting skills 
needed to nurture and care for their children; 
    (7) programs to expand public and private collaboration to 
promote the development of a coordinated and culturally specific 
system of services available to all families; 
    (8) (7) support of periodic screening and evaluation 
services for preschool children to assure adequate developmental 
progress; 
    (9) (8) support of health, educational, and other 
developmental services needed by families with preschool 
children; 
    (10) (9) support of family prevention and intervention 
programs needed to address risks of child abuse or neglect; 
    (11) (10) development or support of a jurisdiction-wide 
coordinating agency to develop and oversee programs to enhance 
child health, development, and school readiness with special 
emphasis on neighborhoods with a high proportion of children in 
need; and 
    (12) (11) other programs or services to improve the health, 
development, and school readiness of children in target 
neighborhoods and communities. 
    Subd. 3.  [ELIGIBLE GRANTEES.] An application for a grant 
may be submitted by any of the following entities: 
    (1) a city, town, county, school district, or other local 
unit of government; 
    (2) two or more governmental units organized under a joint 
powers agreement; 
    (3) a community action agency that satisfies the 
requirements of section 268.53, subdivision 1; or 
    (4) a nonprofit organization, or consortium of nonprofit 
organizations, that demonstrates collaborative effort with at 
least one unit of local government. 
    Subd. 4.  [PILOT PROJECTS DISTRIBUTION.] The commissioner 
of state planning shall award grants for one pilot project in 
each of the following areas of the state: 
    (1) a first class city located within the metropolitan area 
as defined in section 473.121, subdivision 2; 
    (2) a second class city located within the metropolitan 
area as defined in section 473.121, subdivision 2; 
    (3) a city with a population of 50,000 or more that is 
located outside of the metropolitan area as defined in section 
473.121, subdivision 2; and 
    (4) the area of the state located outside of the 
metropolitan area as defined in section 473.121, subdivision 
2 give priority to funding existing programs at their current 
levels.  
    To the extent possible, the commissioner of state planning 
shall award grants to applicants with experience or demonstrated 
ability in providing comprehensive, multidisciplinary, 
community-based programs with objectives similar to those listed 
in subdivision 2, or in providing other human services or social 
services programs using a multidisciplinary, community-based 
approach. 
     Subd. 5.  [APPLICATIONS.] Each grant application must 
propose a five-year program designed to accomplish the purposes 
of this section.  The application must be submitted on forms 
provided by the commissioner of state planning.  The grant 
application must include: 
     (1) a description of the specific neighborhoods that will 
be served under the program and the name, address, and a 
description of each community agency or agencies with which the 
applicant intends to contract to provide services using grant 
money; 
     (2) a letter of intent from each community agency 
identified in clause (1) that indicates the agency's willingness 
to participate in the program and approval of the proposed 
program structure and components; 
     (3) a detailed description of the structure and components 
of the proposed program and an explanation of how each component 
will contribute to accomplishing the purposes of this section; 
     (4) a description of how public and private resources, 
including schools, health care facilities, government agencies, 
neighborhood organizations, and other resources, will be 
coordinated and made accessible to families in target 
neighborhoods, including letters of intent from public and 
private agencies indicating their willingness to cooperate with 
the program; 
    (5) a detailed, proposed budget that demonstrates the 
ability of the program to accomplish the purposes of this 
section using grant money and other available resources, 
including funding sources other than a grant; and 
    (6) a comprehensive evaluation plan for measuring the 
success of the program in meeting the objectives of the overall 
grant program and the individual grant project, including an 
assessment of the impact of the program in terms of at least 
three of the following criteria:  
    (i) utilization rates of community services; 
    (ii) availability of support systems for families; 
    (iii) birth weights of newborn babies; 
    (iv) child accident rates; 
    (v) utilization rates of prenatal care; 
    (vi) reported rates of child abuse; and 
    (vii) rates of health screening and evaluation; and 
    (viii) school readiness of way to grow participants 
compared to nonparticipants. 
    Subd. 6.  [MATCH.] Each dollar of state money must be 
matched with 50 cents of nonstate money.  The pilot project 
selected under subdivision 4, clause (4), Programs may match 
state money with in-kind contributions, including volunteer 
assistance. 
    Subd. 7.  [ADVISORY COMMITTEES.] The commissioner of state 
planning shall establish a program advisory committee consisting 
of persons knowledgeable in child development, child health and 
family services, and the needs of people of color and high risk 
populations who reflect the geographic, cultural, racial, and 
ethnic diversity of the state; and representatives of the 
commissioners of state planning and, education, human services, 
and health.  This program advisory committee shall review grant 
applications, assist in distribution of the grants, and monitor 
progress of the way to grow/school readiness program.  Each 
grantee must establish a program advisory board of 12 or more 
members to advise the grantee on program design, operation, and 
evaluation.  The board must include representatives of local 
units of government and representatives of the project area who 
reflect the geographic, cultural, racial, and ethnic diversity 
of that community.  
    Subd. 8.  [REPORT.] The commissioner of state planning 
shall provide a biennial report to the legislature on the 
program administration and the activities of projects funded 
under this section.  The advisory committee shall report to the 
education committee of the legislature by January 15, 1993, on 
the evaluation required in subdivision 5, clause (6), and shall 
make recommendations for establishing successful way to grow 
programs in unserved areas of the state. 
    Sec. 27.  [REPORT REQUIRED.] 
    School districts contracting with a nonprofit, nonpublic 
school must prepare for the department of education a report 
describing the nonsectarian educational services provided to 
eligible pupils under Minnesota Statutes, section 126.22, 
subdivision 3a.  The department shall report to the education 
committees of the legislature at the end of each school year on 
districts' experiences in contracting. 
     Sec. 28.  [COMMISSIONER OF EDUCATION TO ESTABLISH 
ELIGIBILITY STANDARDS.] 
     The commissioner of education shall establish standards to 
determine the eligibility of an individual to take a GED test at 
a reduced cost.  The standards shall be established without 
rulemaking under Minnesota Statutes, chapter 14.  The standards 
shall include the following: 
    (1) the individual shall have resided in Minnesota at least 
90 days; 
    (2) the individual is not currently enrolled in a program 
leading to a high school diploma; and 
    (3) the individual shall not take more than three tests at 
a reduced cost. 
    Sec. 29.  [EXPIRATION.] 
    Minnesota Statutes, section 126.22, subdivision 3a, expires 
July 1, 1993. 
    Sec. 30.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
education aid according to Minnesota Statutes, section 124.26 in 
fiscal year 1992 and 124.2601 in fiscal year 1993: 
     $5,902,000    .....    1992
     $6,069,000    .....    1993 
    The 1992 appropriation includes $761,000 for 1991 and 
$5,141,000 for 1992.  
    The 1993 appropriation includes $907,000 for 1992 and 
$5,162,000 for 1993.  
    Up to $275,000 each year may be used for contracts with 
private, nonprofit organizations for approved programs.  
    Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
adults with disabilities programs according to Minnesota 
Statutes, section 124.2715: 
     $670,000    .....    1992 
     $670,000    .....    1993 
    Any balance in the first year does not cancel and is 
available for the second year. 
    Subd. 4.  [COMMUNITY EDUCATION AID.] For community 
education aid according to Minnesota Statutes, section 124.2713: 
     $3,636,000    .....    1992 
     $3,464,000    .....    1993 
    The 1992 appropriation includes $498,000 for 1991 and 
$3,138,000 for 1992.  
    The 1993 appropriation includes $552,000 for 1992 and 
$2,912,000 for 1993.  
    Subd. 5.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
childhood family education aid according to Minnesota Statutes, 
section 124.2711: 
     $12,856,000    .....    1992 
     $12,624,000    .....    1993 
    The 1992 appropriation includes $1,549,000 for 1991 and 
$11,307,000 for 1992.  
    The 1993 appropriation includes $1,996,000 for 1992 and 
$10,628,000 for 1993. 
    Subd. 6.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
health and developmental screening aid according to Minnesota 
Statutes, sections 123.702 and 123.7045: 
     $1,489,000    .....    1992 
     $1,607,000    .....    1993 
    The 1992 appropriation includes $86,000 for 1991 and 
$1,403,000 for 1992.  
    The 1993 appropriation includes $247,000 for 1992 and 
$1,360,000 for 1993.  
    Any balance in the first year does not cancel but is 
available in the second year.  
    Subd. 7.  [HEARING IMPAIRED ADULTS.] For programs for 
hearing impaired adults according to Minnesota Statutes, section 
121.201: 
     $70,000     .....     1992
     $70,000     .....     1993
    Subd. 8.  [ADULT GRADUATION AID.] For adult graduation aid: 
     $1,331,000     .....     1992
     $1,364,000     .....     1993
    The 1992 appropriation includes $171,000 for 1991 and 
$1,160,000 for 1992. 
    The 1993 appropriation includes $204,000 for 1992 and 
$1,160,000 for 1993. 
    Subd. 9.  [GED TESTS.] For payment of 60 percent of the 
costs of GED tests: 
     $180,000     .....     1993
    Subd. 10.  [EVALUATION OF BASIC SKILLS PROGRAMS.] For 
continuing an independent statewide evaluation of basic skills 
programs: 
     $75,000     .....     1992
    This appropriation is available until June 30, 1993.  The 
commissioner shall contract with an organization that is not 
connected with the delivery system. 
    Subd. 11.  [GED AND LEARN TO READ ON TV.] For statewide 
purchase of broadcast costs, publicity, and coordination of the 
GED on TV series and the learn to read on TV series: 
     $100,000     .....     1992
     $100,000     .....     1993
    The department may contract for these services. 
    Up to $10,000 of this appropriation for each fiscal year is 
available to contract for these services. 
    Sec. 31.  [APPROPRIATION.] 
    Subdivision 1.  [STATE PLANNING AGENCY.] The sums indicated 
in this section are appropriated from the general fund to the 
state planning agency for the fiscal years designated. 
    Subd. 2.  [WAY TO GROW.] For grants for way to grow 
programs according to Minnesota Statutes, section 145.926: 
     $950,000     .....     1992
    This appropriation is available until June 30, 1993. 
    Sec. 32.  Laws 1989, chapter 329, article 4, section 20, is 
amended to read: 
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1988, sections 123.703; 123.705; 
124.271, subdivisions 2b, 3, 4, and 7; 129B.48; and 275.125, 
subdivision 8, are repealed July 1, 1989.  Section 12, 
subdivision 3a, is repealed July 1, 1990.  Minnesota Statutes, 
sections 123.702 and 123.704, and Section 5, subdivision 3a, are 
is repealed July 1, 1993 1992.  Section 15 is repealed June 30, 
1995. 
    Sec. 33.  [REPEALER.] 
    Minnesota Statutes 1990, sections 123.706 and 123.707, are 
repealed. 
    Minnesota Statutes 1990, sections 124.2713, subdivision 4; 
and 275.125, subdivision 8b, are repealed.  Minnesota Statutes 
1990, section 124.26, subdivision 8, is repealed effective July 
1, 1991.  Minnesota Statutes 1990, section 124.26, subdivision 
7, is repealed effective July 1, 1992. 
    Sec. 34.  [EFFECTIVE DATE.] 
    Section 10, subdivision 4, is effective July 1, 1991.  
Section 10, subdivisions 1, 2, 3, 5, 6, and 7, are effective 
July 1, 1992.  Reimbursements according to section 11 are 
available July 1, 1992. 

                                ARTICLE 5

                        FACILITIES AND EQUIPMENT
    Section 1.  Minnesota Statutes 1990, section 121.148, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMMISSIONER APPROVAL.] In determining 
whether to give a school facility a positive, negative, or 
unfavorable review and comment, the commissioner must evaluate 
the proposals for facilities using the information provided 
under section 121.15, subdivision 7. 
    The commissioner may submit a negative review and comment 
for a project if the district has not submitted its capital 
facilities plan required under section 124.243, subdivision 1, 
to the commissioner. 
    Sec. 2.  Minnesota Statutes 1990, section 121.15, 
subdivision 7, is amended to read: 
    Subd. 7.  [INFORMATION REQUIRED.] A school board proposing 
to construct a facility described in subdivision 6 shall submit 
to the commissioner a proposal containing information including 
at least the following: 
    (a) the geographic area proposed to be served, whether 
within or outside the boundaries of the school district; 
    (b) the people proposed to be served, including census 
findings and projections for the next ten years of the number of 
preschool and school-aged people in the area; 
    (c) the reasonably anticipated need for the facility or 
service to be provided; 
    (d) a description of the construction in reasonable detail, 
including:  the expenditures contemplated; the estimated annual 
operating cost, including the anticipated salary and number of 
new staff necessitated by the proposal; and an evaluation of the 
energy efficiency and effectiveness of the construction, 
including estimated annual energy costs; and a description of 
the telephone capabilities of the facility and its classrooms; 
    (e) a description of existing facilities within the area to 
be served and within school districts adjacent to the area to be 
served; the extent to which existing facilities or services are 
used; the extent to which alternate space is available, 
including other school districts, post-secondary institutions, 
other public or private buildings, or other noneducation 
community resources; and the anticipated effect that the 
facility will have on existing facilities and services; 
    (f) the anticipated benefit of the facility to the area; 
    (g) if known, the relationship of the proposed construction 
to any priorities that have been established for the area to be 
served; 
    (h) the availability and manner of financing the facility 
and the estimated date to begin and complete the facility; 
    (i) desegregation requirements that cannot be met by any 
other reasonable means; 
    (j) the relationship of the proposed facility to the 
cooperative integrated learning needs of the area; and 
    (k) the effects of the proposed facility on the district's 
operating budget. 
    Sec. 3.  Minnesota Statutes 1990, section 121.15, 
subdivision 9, is amended to read: 
    Subd. 9.  [PUBLICATION.] At least 20 days but not more than 
60 days before a referendum for bonds or solicitation of bids to 
construct a facility described in subdivision 6, for a project 
that has received a positive or unfavorable review and comment 
under section 121.148, the school board shall publish the 
commissioner's review and comment of that project in the legal 
newspaper of the district.  Supplementary information shall be 
available to the public.  
    Sec. 4.  Minnesota Statutes 1990, section 121.155, is 
amended to read: 
    121.155 [JOINT POWERS AGREEMENTS FOR EDUCATIONAL 
FACILITIES.] 
    Subdivision 1.  [INSTRUCTIONAL FACILITIES.] Any group of 
districts may form a joint powers district under section 471.59 
representing all participating districts to build or acquire a 
facility to be used for instructional purposes.  The joint 
powers board must submit the project for review and comment 
under section 121.15.  The joint powers board must hold a 
hearing on the proposal.  The joint powers district must submit 
the question of authorizing the borrowing of funds for the 
project to the voters of the joint powers district at a special 
election.  The question submitted shall state the total amount 
of funding needed from all sources.  The joint powers board may 
issue the bonds according to chapter 475 and certify the levy 
required by section 475.61 only if a majority of those voting on 
the question vote in the affirmative and only after the school 
boards of each member district have adopted a resolution 
pledging the full faith and credit of that district.  The 
resolution shall irrevocably commit that district to pay a 
proportionate share, based on pupil units, of any debt levy 
shortages that, together with other funds available, would allow 
the joint powers board to pay the principal and interest on the 
obligations.  The district's payment of its proportionate share 
of the shortfall shall be made from the district's capital 
expenditure fund.  The clerk of the joint powers board must 
certify the vote of the bond election to the commissioner of 
education. 
    Subd. 2.  [SHARED FACILITIES.] A group of governmental 
units may form a joint powers district under section 471.59 
representing all participating units to build or acquire a 
facility.  The joint powers board must submit the project for 
review and comment under section 121.15.  The joint powers board 
must hold a hearing on the proposal.  The joint powers district 
must submit the question of authorizing the borrowing of funds 
for the project to the voters of the joint powers district at a 
special election.  The question submitted shall state the total 
amount of funding needed from all sources.  The joint powers 
board may issue the bonds according to chapter 475 and certify 
the levy required by section 475.61 only if a majority of those 
voting on the question vote in the affirmative and only after 
the boards of each member unit have adopted a resolution 
pledging the full faith and credit of that unit.  The resolution 
must irrevocably commit that unit to pay an agreed upon share of 
any debt levy shortages that, together with other funds 
available, would allow the joint powers board to pay the 
principal and interest on the obligations.  The clerk of the 
joint powers board must certify the vote of the bond election to 
the commissioner of education. 
    Sec. 5.  Minnesota Statutes 1990, section 124.195, 
subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One 
hundred percent of the aid for the current fiscal year must be 
paid for the following aids:  management information center 
subsidies, according to section 121.935; reimbursement for 
transportation to post-secondary institutions, according to 
section 123.3514, subdivision 8; aid for the program for adults 
with disabilities, according to section 124.271, subdivision 7; 
school lunch aid, according to section 124.646; tribal contract 
school aid, according to section 124.85; hearing impaired 
support services aid, according to section 121.201; Indian 
post-secondary preparation grants according to section 124.481; 
and integration grants according to Laws 1989, chapter 329, 
article 8, section 14, subdivision 3; and debt service aid 
according to section 124.95, subdivision 5. 
    Sec. 6.  Minnesota Statutes 1990, section 124.83, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
safety revenue, a district may levy an amount equal to the 
district's health and safety revenue as defined in subdivision 3 
multiplied by the lesser of one, or the ratio of: 
    (1) the quotient derived by dividing (a) the adjusted gross 
tax capacity for fiscal year 1991, and (b) the adjusted net tax 
capacity for 1992 and later fiscal years, of the district for 
the year preceding the year the levy is certified by the actual 
pupil units in the district for the school year to which the 
levy is attributable, to 
    (2)  $7,103.60 for fiscal year 1991 and $5,304 for 1992 and 
later fiscal years $3,515. 
    Sec. 7.  [124.84] [HANDICAPPED ACCESS AND FIRE SAFETY 
IMPROVEMENTS TO SCHOOL BUILDINGS.] 
    Subdivision 1.  [REMOVAL OF ARCHITECTURAL BARRIERS.] If a 
school board has insufficient money in its capital expenditure 
fund to remove architectural barriers from a building it owns in 
order to allow a pupil to attend a school in the pupil's 
attendance area or to meet the needs of an employee with a 
disability, a district may submit an application to the 
commissioner of education containing at least the following: 
    (1) program modifications that the board considered, such 
as relocating classrooms, providing an accessible unisex 
bathroom, providing alternative library resources, or using 
special equipment, such as bookcarts, and the reasons the 
modifications were not feasible; 
    (2) a description of the proposed building modifications 
and the cost of the modifications; and 
    (3) the age and market value of the building. 
    Individuals developing an application for a school district 
shall complete a workshop, developed jointly by the commissioner 
of education and the council on disability, about access 
criteria. 
    In consultation with the council on disability, the 
commissioner shall develop criteria to determine the cost 
effectiveness of removing barriers in older buildings. 
    The commissioner shall approve or disapprove an application 
within 60 days of receiving it.  
    Subd. 2.  [FIRE SAFETY MODIFICATIONS.] If a school district 
has insufficient money in its capital expenditure fund to make 
modifications to a school building required by a fire inspection 
conducted according to section 121.1502, the district may submit 
an application to the commissioner of education containing 
information required by the commissioner.  The commissioner 
shall approve or disapprove of the application according to 
criteria established by the commissioner.  The criteria shall 
take into consideration the cost effectiveness of making 
modifications to older buildings. 
    Subd. 3.  [LEVY AUTHORITY.] The district may levy up to 
$150,000 each year for two years, as approved by the 
commissioner.  
    Sec. 8.  [124.95] [DEBT SERVICE EQUALIZATION PROGRAM.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the required debt service levy of a district is defined 
as follows: 
    (1) the amount needed to produce between five and six 
percent in excess of the amount needed to meet when due the 
principal and interest payments on the obligations of the 
district, including the amounts necessary for repayment of 
energy loans according to section 216C.37, debt service loans 
and capital loans, minus 
    (2) the amount of any surplus remaining in the debt service 
fund when the obligations and interest on them have been paid. 
    Subd. 2.  [ELIGIBILITY.] To be eligible for debt service 
equalization revenue, the following conditions must be met: 
    (1) the required debt service levy of a district must 
exceed the amount raised by a level of eight percent times the 
adjusted net tax capacity of the district; 
    (2) for bond issues approved after July 1, 1990, the 
construction project must have received a positive review and 
comment according to section 121.15; 
    (3) the commissioner has determined that the district has 
met the criteria under section 124.431, subdivision 2, for new 
projects; and 
    (4) the bond schedule must be approved by the commissioner 
and, if necessary, adjusted to reflect a 20-year maturity 
schedule. 
    Subd. 3.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
fiscal years 1995 and later, the debt service equalization 
revenue of a district equals the required debt service levy 
minus the amount raised by a levy of 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). 
    Subd. 4.  [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 actual pupil units in the district for the 
year to which the levy is attributable; or 
    (2) the equalizing factor as defined in section 124A.02, 
subdivision 8, for the year to which the levy is attributable. 
    Subd. 5.  [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.  A district's debt service equalization aid must not be 
prorated. 
    Subd. 6.  [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] 
Debt service equalization aid must be paid as follows:  
one-third before September 15, one-third before December 15, and 
one-third before March 15 of each year. 
    Sec. 9.  [124.96] [ANNUAL DEBT SERVICE EQUALIZATION AID 
APPROPRIATION.] 
    There is annually appropriated from the general fund to the 
department of education the amount necessary for debt service 
equalization aid.  This amount must be reduced by the amount of 
any money specifically appropriated for the same purpose in any 
year from any state fund. * (Section 9 was vetoed by the 
governor.) 
    Sec. 10.  [124.97] [DEBT SERVICE LEVY.] 
    A school district may levy the amounts necessary to make 
payments for bonds issued and for interest on them, including 
the bonds and interest on them, issued as authorized by 
Minnesota Statutes 1974, section 275.125, subdivision 3, clause 
(7)(C); and the amounts necessary for repayment of debt service 
loans and capital loans, minus the amount of debt service 
equalization revenue of the district. 
    Sec. 11.  Minnesota Statutes 1990, section 272.02, 
subdivision 8, is amended to read: 
    Subd. 8.  [PROPERTY LEASED TO SCHOOL DISTRICTS.] Property 
that is leased or rented to a school district is exempt from 
taxation if it meets the following requirements: 
    (1) the lease must be for a period of at least 12 
consecutive months; 
    (2) the terms of the lease must require the school district 
to pay a nominal consideration for use of the building; 
    (3) the school district must use the property to provide 
direct instruction in any grade from kindergarten through grade 
12 or; special education for handicapped children or; adult 
basic and continuing education as described in section 124.26; 
preschool and early childhood family education; or community 
education programs, including provision of administrative 
services directly related to the educational program at that 
site; and 
    (4) the lease must provide that the school district has the 
exclusive use of the property during the lease period. 
    Sec. 12.  Minnesota Statutes 1990, section 275.125, 
subdivision 4, is amended to read: 
    Subd. 4.  [MISCELLANEOUS LEVY AUTHORIZATIONS.] (a) A school 
district may levy the amounts necessary to make payments for 
bonds issued and for interest thereon, including the bonds and 
interest thereon, issued as authorized by Minnesota Statutes 
1974, section 275.125, subdivision 3, clause (7)(C); the amounts 
necessary for repayment of debt service loans and capital loans; 
the amounts necessary to pay the district's obligations under 
section 6.62; the amount authorized for liabilities of dissolved 
districts pursuant to section 122.45; the amounts necessary to 
pay the district's obligations under section 268.06, subdivision 
25; the amounts necessary to pay for job placement services 
offered to employees who may become eligible for benefits 
pursuant to section 268.08; the amounts necessary to pay the 
district's obligations under section 127.05; the amounts 
authorized by section 122.531; the amounts necessary to pay the 
district's obligations under section 122.533; and for severance 
pay required by this section and section 122.535, subdivision 6. 
    (b) An education district that negotiates a collective 
bargaining agreement for teachers under section 122.937 may 
certify to the department of education the amount necessary to 
pay all of the member districts' obligations and the education 
district's obligations under section 268.06, subdivision 25. 
    The department of education must allocate the levy amount 
proportionately among the member districts based on adjusted net 
tax capacity.  The member districts must levy the amount 
allocated. 
     (c) Each year, a member district of an education district 
that levies under this subdivision must transfer the amount of 
revenue certified under paragraph (b) to the education district 
board according to this subdivision.  By June 20 and November 30 
of each year, an amount must be transferred equal to: 
     (1) 50 percent times 
     (2) the amount certified in paragraph (b) minus homestead 
and agricultural credit aid allocated for that levy according to 
section 273.1398, subdivision 6. 
    Sec. 13.  Minnesota Statutes 1990, section 275.125, 
subdivision 11d, is amended to read: 
    Subd. 11d.  [EXTRA CAPITAL EXPENDITURE LEVY FOR LEASING 
BUILDINGS TO LEASE A BUILDING AND LAND.] When a district finds 
it economically advantageous to rent or lease a building or land 
for any instructional purposes and it determines that the 
capital expenditure facilities revenues authorized under section 
124.243 are insufficient for this purpose, it may apply to the 
commissioner for permission to make an additional capital 
expenditure levy for this purpose.  An application for 
permission to levy under this subdivision must contain financial 
justification for the proposed levy, the terms and conditions of 
the proposed lease, and a description of the space to be leased 
and its proposed use.  The criteria for approval of applications 
to levy under this subdivision must include:  the reasonableness 
of the price, the appropriateness of the space to the proposed 
activity, the feasibility of transporting pupils to the leased 
building or land, conformity of the lease to the laws and rules 
of the state of Minnesota, and the appropriateness of the 
proposed lease to the space needs and the financial condition of 
the district.  The commissioner must not authorize a levy under 
this subdivision in an amount greater than the cost to the 
district of renting or leasing a building or land for approved 
purposes.  The proceeds of this levy must not be used for 
leasing or renting a facility owned by a district or for 
custodial or other maintenance services. 
    Sec. 14.  [373.42] [COUNTY FACILITIES GROUP.] 
    Subdivision 1.  [ESTABLISHMENT.] Each county outside of the 
seven-county metropolitan area must establish a county 
facilities group by July 1, 1992. 
    Subd. 2.  [MEMBERSHIP.] A county facilities group consists 
of at least one representative from the county board, one 
representative from each city located within the county, one 
representative from each school district located within the 
county, up to three representatives of townships selected by the 
county board, and two other members selected by the county board.
    Subd. 3.  [DUTIES.] The county facilities group shall 
develop an inventory of all public buildings located within the 
county.  The inventory shall include an assessment of the 
condition of each public building and document any under used 
space in the buildings. 
    Subd. 4.  [COMMENT.] The county facilities group shall 
review and comment on any proposed joint facility and may submit 
comments to the commissioner of education on any school district 
facility that is proposed within the county. 
    Sec. 15.  [473.23] [PUBLIC FACILITIES REVIEW.] 
    Subdivision 1.  [INVENTORY.] The metropolitan council, in 
consultation with appropriate state agencies and local 
officials, must develop an inventory of all public buildings 
located within the metropolitan area.  The inventory must 
include an assessment of the condition of each public building 
and document any under used space in the buildings. 
    Subd. 2.  [SHARED FACILITIES.] The metropolitan council 
must review and comment on any joint facility proposed under 
section 121.155 and may submit comments to the commissioner of 
education on any school district facility that is proposed 
within the metropolitan area. 
    Sec. 16.  [APPLICATION.] 
    Section 15 applies in the counties of Anoka, Carver, 
Dakota, Hennepin, Ramsey, Scott, and Washington. 
    Sec. 17.  [HEALTH AND SAFETY LEVY ADJUSTMENT.] 
    The department of education shall adjust the 1991 payable 
1992 levy for each school district or intermediate district by 
the amount of the change in the district's health and safety 
levy for fiscal year 1992 according to Minnesota Statutes, 
section 124.83, subdivision 4, resulting from the change to the 
health and safety equalizing factor.  Notwithstanding Minnesota 
Statutes, section 121.904, the entire amount of this levy must 
be recognized as revenue for fiscal year 1992. 
    Sec. 18.  [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
    In addition to other bonding authority, with approval of 
the commissioner, independent school districts No. 393, LeSueur, 
No. 508, St. Peter, and No. 734, Henderson, may issue general 
obligation bonds for certain capital projects under this 
section.  The bonds must be used only to make capital 
improvements including equipping school buildings, improving 
handicap accessibility to school buildings, and bringing school 
buildings into compliance with fire codes.  
    Before a district issues bonds under this subdivision, it 
must publish notice of the intended projects, related costs, and 
the total amount of district indebtedness.  
    A bond issue tentatively authorized by the board under this 
subdivision becomes finally authorized unless a petition signed 
by more than 15 percent of the registered voters of the school 
district is filed with the school board within 30 days of the 
board's action.  The percentage is to be determined with 
reference to the number of registered voters in the school 
district on the last day before the petition is filed with the 
school board.  The petition must call for a referendum on the 
question of whether to issue the bonds for the projects under 
this section.  The approval of 50 percent plus one of those 
voting on the question is required to pass a referendum 
authorized by this section. 
    The bonds may be issued in a principal amount, that when 
combined with interest thereon, will be paid off with 50 percent 
of current and anticipated revenue for capital facilities under 
this section or a successor section for the current year plus 
projected revenue not greater than the current year for the next 
ten years.  Once finally authorized, the district must set aside 
50 percent of the current year's revenue for capital facilities 
under this section or a successor section each year in a 
separate account until all principal and interest on the bonds 
is paid.  The district must annually transfer this amount from 
its capital fund to the debt redemption fund.  The bonds must be 
paid off within ten years of issuance.  The bonds must be issued 
in compliance with Minnesota Statutes, chapter 475, except as 
otherwise provided in this section. 
    Sec. 19.  [HUTCHINSON SCHOOL DISTRICT LEASE PURCHASE LEVY.] 
    Notwithstanding Minnesota Statutes, section 275.125 or 
other law, independent school district No. 423, Hutchinson, may 
levy each year for the annual payments required on a lease 
purchase agreement for a facility for level V emotionally and 
behaviorally disturbed special education students. 
    Sec. 20.  [ST. PAUL SCHOOL DISTRICT BONDS.] 
    Subdivision 1.  [BONDING AUTHORIZATION.] To provide funds 
to acquire or better school facilities, independent school 
district No. 625 may by two-thirds majority vote of all the 
members of the board of directors issue general obligation bonds 
in one or more series in calendar years 1992 to 1996 as provided 
in this section.  The aggregate principal amount of any bonds 
issued under this section in calendar year 1992 must not exceed 
$12,700,000 and in calendar years 1993 to 1996 must not exceed 
$9,000,000 each year.  Issuance of the bonds is not subject to 
Minnesota Statutes, section 475.58 or 475.59.  As with other 
bonds issued by independent school district No. 625, the first 
sentence of Minnesota Statutes, section 475.53, subdivision 5, 
does not apply to issuance of the bonds.  The bonds must 
otherwise be issued as provided in Minnesota Statutes, chapter 
475.  The authority to issue bonds under this section is in 
addition to any bonding authority authorized by Minnesota 
Statutes, chapter 124, or other law.  The amount of bonding 
authority authorized under this section must be disregarded in 
calculating the bonding or net debt limits of Minnesota 
Statutes, chapter 124, or any other law other than Minnesota 
Statutes, section 475.53, subdivision 4. 
    Subd. 2.  [TAX LEVY FOR DEBT SERVICE.] To pay the principal 
of and interest on bonds issued under subdivision 1, independent 
school district No. 625 must levy a tax annually in an amount 
required under Minnesota Statutes, section 475.61, subdivisions 
1 and 3.  The tax authorized under this section is in addition 
to the taxes authorized to be levied under Minnesota Statutes, 
chapter 124A or 275, or other law. 
    Sec. 21.  [TAXPAYER NOTIFICATION.] 
    Subdivision 1.  [APPLICABILITY.] This section applies to 
bonding authority granted under section 20.  
    Subd. 2.  [NOTICE.] (a) A school board must prepare a 
notice of the public meeting on the proposed sale of all or any 
of the bonds and mail the notice to each postal patron residing 
within the school district.  The notice must be mailed at least 
15 days but not more than 30 days before the meeting.  Notice of 
the meeting must also be posted in the administrative office of 
the school district and must be published twice during the 14 
days before the meeting in the official newspaper of the city in 
which the school district is located. 
    (b) The notice must contain the following information: 
    (1) the proposed dollar amount of bonds to be issued; 
    (2) the dollar amount of the levy increase necessary to pay 
the principal and interest on the newly authorized bonds; 
    (3) the estimated levy amount and net tax capacity rate 
necessary to make the debt service payments on any existing 
outstanding debt; 
    (4) the projected effects on individual property types; and 
    (5) the required levy and principal and interest on all 
outstanding bonds in addition to the bonds proposed under clause 
(1). 
    (c) To comply with paragraph (b), clause (4), the notice 
must show the projected annual dollar increase and net tax 
capacity rate increase for a representative range of residential 
homestead, residential nonhomestead, apartments, and 
commercial-industrial properties located within each state 
senate district in the school district. 
    Subd. 3.  [BOND AUTHORIZATION.] A school board may vote to 
issue bonds newly authorized under section 20 only after 
complying with the requirements of subdivision 2. 
    Sec. 22.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
    Sections 20 and 21 are effective the day after the 
governing body of independent school district No. 625 complies 
with Minnesota Statutes, sections 645.021, subdivision 3. 
    Sec. 23.  [MAXIMUM EFFORT CAPITAL LOAN DEBT REDEMPTION 
EXCESS.] 
    (a) Notwithstanding Minnesota Statutes, section 124.431, 
subdivision 11, or any other law to the contrary, a school 
district having an outstanding capital loan that has an excess 
amount in the debt redemption fund as calculated according to 
Minnesota Statutes, section 124.431, subdivision 11, may apply 
to the commissioner for an adjustment to the amount of excess 
owed to the state.  The commissioner may reduce the excess that 
a district owes the state if a district's capital loan is 
outstanding and if the commissioner determines that any of the 
following conditions apply: 
    (1) a district is likely to incur a substantial property 
tax delinquency that will adversely affect the district's 
ability to make its scheduled bond payments; 
    (2) a district's agreement with its bondholders or its 
taxpayers could be impaired; or 
    (3) the district's tax capacity per pupil is less than 
one-tenth of the equalizing factor as defined in Minnesota 
Statutes, section 124A.02, subdivision 8.  
     (b) The amount of the excess that may be forgiven may not 
exceed $200,000 in a single year for any district. 
    Sec. 24.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [CAPITAL EXPENDITURE FACILITIES AID.] For capital 
expenditure facilities aid according to Minnesota Statutes, 
section 124.243, subdivision 5:  
     $73,185,000     .....     1992 
     $72,731,000     .....     1993
    The 1992 appropriation includes $10,920,000 for 1991 and 
$62,265,000 for 1992.  
    The 1993 appropriation includes $10,988,000 for 1992 and 
$61,743,000 for 1993.  
    Subd. 3.  [CAPITAL EXPENDITURE EQUIPMENT AID.] For capital 
expenditure equipment aid according to Minnesota Statutes, 
section 124.244, subdivision 3:  
     $36,593,000     .....     1992 
     $36,365,000     .....     1993 
    The 1992 appropriation includes $5,460,000 for 1991 and 
$31,133,000 for 1992.  
    The 1993 appropriation includes $5,493,000 for 1992 and 
$30,872,000 for 1993.  
    Subd. 4.  [HEALTH AND SAFETY AID.] For health and safety 
aid according to Minnesota Statutes, section 124.83, subdivision 
5: 
     $11,560,000     .....     1992 
     $11,351,000     .....     1993 
    The 1992 appropriation includes $1,650,000 for 1991 and 
$9,910,000 for 1992.  
    The 1993 appropriation includes $1,748,000 for 1992 and 
$9,603,000 for 1993. 
    For fiscal year 1993, total health and safety revenue may 
not exceed $58,800,000.  The state board of education shall 
establish criteria for prioritizing district health and safety 
project applications not to exceed this amount.  The criteria 
may not discriminate between the number of pupils in and the 
geographic location of school districts.  
    Subd. 5.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] For the 
maximum effort school loan fund: 
     $ 6,139,000     .....     1993 
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in Minnesota Statutes, section 124.46, to the extent that money 
in the fund is not sufficient to pay when due the full amount of 
principal and interest due on school loan bonds.  The purpose of 
these appropriations is to ensure that sufficient money is 
available in the fund to prevent a statewide property tax levy 
as would otherwise be required pursuant to Minnesota Statutes, 
section 124.46, subdivision 3.  Notwithstanding the provisions 
of Minnesota Statutes, section 124.39, subdivision 5, any amount 
of the appropriation made in this section which is not needed to 
pay when due the principal and interest due on school loan bonds 
shall not be transferred to the debt service loan account of the 
maximum effort school loan fund but instead shall cancel to the 
general fund. 
    Subd. 6.  [DEBT SERVICE AID.] For debt service aid 
according to Minnesota Statutes, section 124.95, subdivision 5: 
     $4,950,000*   .....    1993 
     * (The appropriation of $4,950,000 was vetoed by the 
governor.) 
    Sec. 25.  [EFFECTIVE DATE.] 
     Sections 5, 8, 9, 10, and 12 are effective for revenue for 
fiscal year 1993. 
    Section 7 is effective for revenue for fiscal year 1994. 

                                ARTICLE 6

                 EDUCATION ORGANIZATION AND COOPERATION
    Section 1.  Minnesota Statutes 1990, section 120.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [SEVERANCE PAY.] A district shall pay severance 
pay to a teacher who is:  
    (1) placed on unrequested leave of absence by the district 
because the teacher's position is discontinued as a result of an 
agreement under this section; and 
    (2) not employed by another district for the school year 
following the teacher's placement on unrequested leave of 
absence.  A teacher is eligible under this subdivision if the 
teacher: 
    (1) is a teacher, as defined in section 125.12, subdivision 
1, but not a superintendent; 
    (2) has a continuing contract with the district according 
to section 125.12, subdivision 4. 
    The amount of severance pay shall be equal to the teacher's 
salary for the school year during which the teacher was placed 
on unrequested leave of absence minus the gross amount the 
teacher was paid during the 12 months following the teacher's 
termination of salary, by an entity whose teachers by statute or 
rule must possess a valid Minnesota teaching license, and minus 
the amount a teacher receives as severance or other similar pay 
according to a contract with the district or district policy.  
These entities include, but are not limited to, the school 
district that placed the teacher on unrequested leave of 
absence, another school district in Minnesota, an education 
district, an intermediate school district, an ECSU, a board 
formed under section 471.59, a technical college, a state 
residential academy, the Minnesota center for arts education, a 
vocational center, or a special education cooperative.  These 
entities do not include a school district in another state, a 
Minnesota public post-secondary institution, or a state agency.  
Only amounts earned by the teacher as a substitute teacher or in 
a position requiring a valid Minnesota teaching license shall be 
subtracted.  A teacher may decline any offer of employment as a 
teacher without loss of rights to severance pay. 
    To determine the amount of severance pay that is due for 
the first six months following termination of the teacher's 
salary, the district may require the teacher to provide 
documented evidence of the teacher's employers and gross 
earnings during that period.  The district shall pay the teacher 
the amount of severance pay it determines to be due from the 
proceeds of the levy for this purpose.  To determine the amount 
of severance pay that is due for the second six months of the 12 
months following the termination of the teacher's salary, the 
district may require the teacher to provide documented evidence 
of the teacher's employers and gross earnings during that 
period.  The district shall pay the teacher the amount of 
severance pay it determines to be due from the proceeds of the 
levy for this purpose. 
    A teacher who receives severance pay under this subdivision 
waives all further reinstatement rights under section 125.12, 
subdivision 6a or 6b.  If the teacher receives severance pay, 
the teacher shall not receive credit for any years of service in 
the district paying severance pay prior to the year in which the 
teacher becomes eligible to receive severance pay.  
    The severance pay shall be equivalent to the teacher's 
salary for one year and is subject to section 465.72.  The 
district may levy annually according to section 275.125, 
subdivision 4, for the severance pay. 
    Sec. 2.  Minnesota Statutes 1990, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 6.  [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] A 
school district that has reorganized according to section 
122.22, 122.23, or sections 122.241 to 122.248 may make 
permanent transfers between any of the funds in the newly 
created or enlarged district with the exception of the debt 
redemption fund.  Fund transfers under this section may be made 
only during the year following the effective date of 
reorganization. 
    Sec. 3.  [121.915] [REORGANIZATION OPERATING DEBT.] 
    The "reorganization operating debt" of a school district 
means the net negative undesignated fund balance in all school 
district funds, other than capital expenditure, building 
construction, debt redemption, trust and agency, and 
post-secondary vocational technical education funds, calculated 
in accordance with the uniform financial accounting and 
reporting standards for Minnesota school districts as of: 
    (1) June 30 of the fiscal year before the first year that a 
district receives revenue according to section 124.2725; or 
    (2) June 30 of the fiscal year before the effective date of 
reorganization according to section 122.22 or 122.23. 
    Sec. 4.  Minnesota Statutes 1990, section 121.935, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [DISTRICT COMPUTING SUBSIDIES.] The 
appropriation for regional management information centers shall 
be allocated among the centers according to the allocation for 
fiscal year 1991.  Any part of the appropriation for fiscal year 
1991 that was not distributed directly to the centers shall be 
added to the allocation according to the proportions each center 
received for fiscal year 1991.  Payment of the amount 
appropriated shall be to school districts.  Each school district 
shall receive a payment equal to: 
    (1) the number of pupil units in the district divided by 
the number of pupil units in all of the districts that are 
members of the center; times 
    (2) the allocation for the center of which the district is 
a member. 
    The payment shall be used by the district to purchase 
services from a regional management information center, another 
school district, or other provider, or to provide the services.  
The payment shall be deposited in the district's capital 
expenditure fund. 
    Sec. 5.  Minnesota Statutes 1990, section 121.935, is 
amended by adding a subdivision to read: 
    Subd. 7.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No school district shall be required by any type 
of formal or informal agreement, including a joint powers 
agreement, or otherwise to participate in or provide financial 
support for the purposes of the agreement for a time period in 
excess of one fiscal year.  Any agreement, part of an agreement, 
or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred as a result of any agreement 
before the effective date of this section.  The school district 
is liable only until the obligation or debt is discharged and 
only according to the payment schedule in effect on the 
effective date of this section, except that the payment schedule 
may be altered for the purpose of restructuring debt or 
refunding bonds outstanding on the effective date of this 
section if the annual payments of the school 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 
school board shall 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 or, at the option of the school board, June 30 of 
the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the 
governing body responsible for implementing the agreement shall 
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 shall be 
adopted within a time sufficient to allow the school board to 
adopt a resolution within the time permitted by this paragraph 
and to comply with the statutory deadlines set forth in article 
9, section 33, and sections 125.12 and 125.17.  The governing 
body responsible for implementing the agreement shall notify 
each participating school 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 school 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 school 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 the effective date of this section, 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. 
    Sec. 6.  Minnesota Statutes 1990, section 122.22, 
subdivision 7a, is amended to read: 
    Subd. 7a.  Before the day of a hearing ordered pursuant to 
this section, each district adjoining the district proposed for 
dissolution shall provide the following information and 
resolution to the county auditor of the county containing the 
greatest land area of the district proposed for dissolution:  
    (a) The outstanding bonded debt, outstanding energy loans 
made according to section 216C.37 or sections 298.292 to 
298.298, and the capital loan obligation of the district; 
    (b) The net tax capacity of the district; 
    (c) The most current school tax rates for the district, 
including any referendum, discretionary, or other optional 
levies being assessed currently and the expected duration of the 
levies; 
    (d) A resolution passed by the school board of the district 
stating that if taxable property of the dissolved district is 
attached to it, one of the following requirements is imposed:  
(1) the taxable property of the dissolving district which is 
attached to its district shall not be liable for the bonded 
debt, outstanding energy loans made according to section 216C.37 
or sections 298.292 to 298.298, or the capital loan obligation 
of the district which existed as of the time of the attachment; 
(2) the taxable property of the dissolving district which is 
attached to its district shall be liable for the payment of the 
bonded debt, outstanding energy loans made according to section 
216C.37 or sections 298.292 to 298.298, or the capital loan 
obligation of the district which existed as of the time of the 
attachment in the proportion which the net tax capacity of that 
part of the dissolving district which is included in the newly 
enlarged district bears to the net tax capacity of the entire 
district as of the time of attachment; or (3) the taxable 
property of the dissolving district which is attached to its 
district shall be liable for some specified portion of the 
amount that could be requested pursuant to subclause (2).  
    An apportionment pursuant to subclause (2) or (3) shall be 
made by the county auditor of the county containing the greatest 
land area of the district proposed for transfer.  
    An apportionment of bonded indebtedness, outstanding energy 
loans made according to section 216C.37 or sections 298.292 to 
298.298, or capital loan obligation pursuant to subclause (2) or 
(3) shall not relieve any property from any tax liability for 
payment of any bonded or capital obligation, but taxable 
property in a district enlarged pursuant to this section becomes 
primarily liable for the payment of the bonded debt, outstanding 
energy loans made according to section 216C.37 or sections 
298.292 to 298.298, or capital loan obligation to the extent of 
the proportion stated.  
    Sec. 7.  Minnesota Statutes 1990, section 122.22, 
subdivision 9, is amended to read: 
    Subd. 9.  An order issued under subdivision 8, clause (b), 
shall contain the following: 
    (a) A statement that the district is dissolved unless the 
results of an election held pursuant to subdivision 11 provide 
otherwise; 
    (b) A description by words or plat or both showing the 
disposition of territory in the district to be dissolved; 
    (c) The outstanding bonded debt, outstanding energy loans 
made according to section 216C.37 or sections 298.292 to 
298.298, and the capital loan obligation of the district to be 
dissolved; 
    (d) A statement requiring the fulfillment of the 
requirements imposed by each adjoining district to which 
territory in the dissolving district is to be attached regarding 
the assumption of its outstanding preexisting bonded 
indebtedness by any territory from the dissolving district which 
is attached to it; 
    (e) An effective date for the order.  The effective date 
shall be at least three months after the date of the order, and 
shall be July 1 of an odd-numbered year; and 
    (f) Other information the county board may desire to 
include. 
    The auditor shall within ten days from its issuance serve a 
copy of the order by mail upon the clerk of the district to be 
dissolved and upon the clerk of each district to which the order 
attaches any territory of the district to be dissolved and upon 
the auditor of each other county in which all or any part of the 
district to be dissolved or any district to which the order 
attaches territory lies, and upon the commissioner.  
    Sec. 8.  Minnesota Statutes 1990, section 122.23, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) Upon a resolution of a school board in the 
area proposed for consolidation or upon receipt of a petition 
therefor executed by 25 percent of the voters resident in the 
area proposed for consolidation or by 50 such voters, whichever 
is lesser, the county auditor of the county which contains the 
greatest land area of the proposed new district shall forthwith 
cause a plat to be prepared.  The resolution or petition shall 
show the approximate area proposed for consolidation.  
    (b) The resolution or petition may propose either the 
following: 
    (1) that the bonded debt of the component districts will be 
paid according to the levies previously made for that debt under 
chapter 475, as provided in subdivision 16a, or that the taxable 
property in the newly created district will be taxable for the 
payment of all or a portion of the bonded debt previously 
incurred by any component district as provided in subdivision 
16b.  The resolution or petition may also propose; 
    (2) that obligations for a capital loan or an energy loan 
made according to section 216C.37 or sections 298.292 to 298.298 
outstanding in a preexisting district as of the effective date 
of consolidation remain solely with the preexisting district 
that obtained the loan, or that all or a portion of the loan 
obligations will be assumed by the newly created or enlarged 
district and paid by the newly created or enlarged district on 
behalf of the preexisting district that obtained the loan; 
    (c) (3) that referendum levies previously approved by 
voters of the component districts pursuant to section 124A.03, 
subdivision 2, or its predecessor provision, be combined as 
provided in section 122.531, subdivision 2a or 2b, or that the 
referendum levies be discontinued.  The resolution or petition 
may also propose; 
    (4) that the board of the newly created district consist of 
seven members, and may also propose the establishment of; or 
    (5) that separate election districts from which school 
board members will be elected, the boundaries of these election 
districts, and the initial term of the member elected from each 
of these election districts be established.  If a county auditor 
receives more than one request for a plat and the requests 
involve parts of identical districts, the auditor shall 
forthwith prepare a plat which in the auditor's opinion best 
serves the educational interests of the inhabitants of the 
districts or areas affected.  
    (c) The plat shall show: 
    (a) (1) Boundaries of the proposed district, as determined 
by the county auditor, and present district boundaries, 
    (b) (2) The location of school buildings in the area 
proposed as a new district and the location of school buildings 
in adjoining districts, 
    (c) (3) The boundaries of any proposed separate election 
districts, and 
    (d) (4) Other pertinent information as determined by the 
county auditor. 
    Sec. 9.  Minnesota Statutes 1990, section 122.23, 
subdivision 3, is amended to read: 
    Subd. 3.  A supporting statement to accompany the plat 
shall be prepared by the county auditor.  The statement shall 
contain: 
    (a) The adjusted net tax capacity of property in the 
proposed district, 
    (b) If a part of any district is included in the proposed 
new district, the adjusted net tax capacity of the property and 
the approximate number of pupils residing in the part of the 
district included shall be shown separately and the adjusted net 
tax capacity of the property and the approximate number of 
pupils residing in the part of the district not included shall 
also be shown, 
    (c) The reasons for the proposed consolidation, including a 
statement that at the time the plat is submitted to the state 
board of education, no proceedings are pending to dissolve any 
district involved in the plat unless all of the district to be 
dissolved and all of each district to which attachment is 
proposed is included in the plat, 
    (d) A statement showing that the jurisdictional fact 
requirements of subdivision 1 are met by the proposal, 
    (e) Any proposal contained in the resolution or petition 
regarding the disposition of the bonded debt, outstanding energy 
loans made according to section 216C.37 or sections 298.292 to 
298.298, capital loan obligations, or referendum levies of 
component districts, 
    (f) Any other information the county auditor desires to 
include, and 
     (g) The signature of the county auditor. 
    Sec. 10.  Minnesota Statutes 1990, section 122.241, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] Sections 122.241 to 122.248 
establish procedures for school boards that adopt, by 
resolution, a five-year written agreement: 
    (1) to provide at least secondary instruction cooperatively 
for at least one or two years, if the districts cooperate 
according to subdivision 2; and 
    (2) to combine into one district after cooperating.  
    Sec. 11.  Minnesota Statutes 1990, section 122.241, 
subdivision 2, is amended to read: 
    Subd. 2.  [COOPERATION REQUIREMENTS.] Cooperating districts 
shall: 
    (1) implement a written agreement according to section 
122.541 no later than the first year of cooperation; 
    (2) all be members of one education district, if any one of 
the districts is a member, no later than the end of the second 
year of cooperation; and 
    (3) all be members of one ECSU, if any one of the districts 
is a member. 
    Clause (1) does not apply to a district that implemented an 
agreement for secondary education, according to section 122.535, 
during any year before the 1991-1992 school year.  If the 
districts cooperate for one or more years, the agreement may be 
continued during those years. 
    Sec. 12.  Minnesota Statutes 1990, section 122.242, 
subdivision 9, is amended to read: 
    Subd. 9.  [FINANCES.] The plan must state:  
    (1) whether debt service for the bonds outstanding at the 
time of combination remains solely with the district that issued 
the bonds or whether all or a portion of the debt service for 
the bonds will be assumed by the combined district and paid by 
the combined district on behalf of the district that issued the 
bonds; 
    (2) whether obligations for a capital loan or energy loan 
made according to section 216C.37 or sections 298.292 to 298.298 
outstanding at the time of combination remain solely with the 
district that obtained the loan, or whether all or a portion of 
all the loan obligations will be assumed by the combined 
district and paid by the combined district on behalf of the 
district that obtained the loan; 
    (3) the treatment of debt service levies and referendum 
levies; 
    (3) (4) whether the cooperating or combined district will 
levy for reorganization operating debt according to section 3, 
clause (1); and 
    (5) two-, five-, and ten-year projections, prepared by the 
department of education upon the request of any district, of 
revenues, expenditures, and property taxes for each district if 
it cooperated and combined and if it did not.  
    Sec. 13.  Minnesota Statutes 1990, section 122.243, 
subdivision 2, is amended to read: 
    Subd. 2.  [VOTER APPROVAL.] During the first or second year 
of cooperation, A referendum on the question of combination 
shall be conducted during the first or second year of 
cooperation for districts that cooperate according to section 
122.241, or no more than 18 months before the effective date of 
combination for districts that do not cooperate.  The referendum 
shall be on a date called by the school boards.  The referendum 
shall be conducted by the school boards according to the 
Minnesota election law, as defined in section 200.01.  If the 
referendum fails, the same question or a modified question may 
be submitted the following school year.  If a question is 
submitted, the second referendum must be conducted on a date 
before October 1.  If the referendum fails again, the same 
question may not be submitted districts shall modify their 
cooperation and combination plan.  A different question third 
referendum may be submitted conducted on any date before October 
1.  Referendums shall be conducted on the same date in all 
districts. 
    Sec. 14.  Minnesota Statutes 1990, section 122.247, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [CAPITAL LOAN.] The combined school board may 
levy for the obligations for a capital loan outstanding at the 
time of combination, consistent with the plan adopted according 
to section 122.242 and any subsequent modifications.  The 
primary obligation to levy as required by the capital loan 
remains with taxable property in the preexisting district that 
obtained the capital loan.  However, the obligation of a capital 
loan may be extended to all of the taxable property in the 
combined district. 
    Sec. 15.  Minnesota Statutes 1990, section 122.247, 
subdivision 3, is amended to read: 
    Subd. 3.  [TRANSITIONAL LEVY.] The board of the combined 
district, or the boards of combining districts that have 
received voter approval for the combination under section 
122.243, subdivision 2, may levy for the expenses of 
negotiation, administrative expenses directly related to the 
transition from cooperation to combination, and the cost of 
necessary new athletic and music uniforms.  The board or boards 
may levy this amount over three or fewer years.  All expenses 
must be approved by the state board of education.  
    Sec. 16.  Minnesota Statutes 1990, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [REORGANIZATION OPERATING DEBT LEVIES.] (a) A 
district that is cooperating or has combined according to 
sections 122.241 to 122.248 may levy to eliminate reorganization 
operating debt as defined in section 3, clause (1).  The amount 
of the debt must be certified over a period of five years.  
After the effective date of combination according to sections 
122.241 to 122.248, the levy may be certified and spread only 
either on the property in the combined district that would have 
been taxable in the preexisting district that incurred the debt 
or on all of the taxable property in the combined district. 
    (b) A district that has reorganized according to section 
122.22 or 122.23 may levy to eliminate reorganization operating 
debt as defined in section 3, clause (2).  The amount of debt 
must be certified over a period not to exceed five years and may 
be spread either only on the property in the newly created or 
enlarged district which was taxable in the preexisting district 
that incurred the debt or on all of the taxable property in the 
newly created or enlarged district. 
    Sec. 17.  [122.5311] [OBLIGATIONS UPON DISTRICT 
REORGANIZATION.] 
    Subdivision 1.  [CAPITAL LOAN OBLIGATIONS.] If a district 
has a capital loan outstanding at the time of reorganization 
according to section 122.22, 122.23, or sections 122.241 to 
122.248, and if the plan for reorganization provides for payment 
of all or a portion of the capital loan obligation by the newly 
created or enlarged district or makes no provision for payment, 
all of the taxable property in the newly created or enlarged 
district is taxable for the payment to the extent stated in the 
plan.  Notwithstanding any contract to the contrary, if all of 
the taxable property in the newly created or enlarged district 
is taxable for the payment of the capital loan and until the 
capital loan is retired or canceled, the maximum effort debt 
service levy shall be recalculated annually by the department of 
education to be equal to the required debt service levy plus an 
additional amount.  The additional amount shall be the greater 
of: 
    (i) zero, or 
    (ii) the maximum effort debt service levy of the 
preexisting district minus the required debt service levy of the 
preexisting district that received the capital loan. 
    For the purpose of the recalculation, additional bond 
issues after the date of the reorganization shall not impact the 
maximum effort debt service levy or the required debt service 
levy. 
    Notwithstanding any contract to the contrary, the plan for 
reorganization may specify that the obligation for a capital 
loan remains solely with the preexisting district that incurred 
the obligation.  This subdivision does not relieve any property 
from any tax liability for payment of any capital loan 
obligation. 
    Subd. 2.  [ENERGY LOAN OBLIGATIONS.] If a district has an 
energy loan outstanding at the time of reorganization according 
to section 122.22, 122.23, or sections 122.241 to 122.248, and 
if the plan for reorganization provides for payment of all or a 
portion of the energy loan obligation by the newly created or 
enlarged district or makes no provision for payment, all of the 
taxable property in the newly created or enlarged district is 
taxable for the payment.  
    Notwithstanding any contract to the contrary, the plan for 
reorganization may specify that the obligation for an energy 
loan remains solely with the preexisting district that incurred 
the obligation.  This subdivision does not relieve any property 
from any tax liability for payment of any energy loan obligation.
    Sec. 18.  Minnesota Statutes 1990, section 122.535, 
subdivision 6, is amended to read: 
    Subd. 6.  [SEVERANCE PAY.] A district shall pay severance 
pay to a teacher who is:  
    (1) placed on unrequested leave of absence by the district 
because the teacher's position is discontinued as a result of 
the agreement; and 
    (2) not employed by another district for the school year 
following the teacher's placement on unrequested leave of 
absence.  A teacher is eligible under this subdivision if the 
teacher: 
    (1) is a teacher, as defined in section 125.12, subdivision 
1, but not a superintendent; 
    (2) has a continuing contract with the district according 
to section 125.12, subdivision 4. 
    The amount of severance pay shall be equal to the teacher's 
salary for the school year during which the teacher was placed 
on unrequested leave of absence minus the gross amount the 
teacher was paid during the 12 months following the teacher's 
termination of salary, by an entity whose teachers by statute or 
rule must possess a valid Minnesota teaching license, and minus 
the amount a teacher receives as severance or other similar pay 
according to a contract with the district or district policy.  
These entities include, but are not limited to, the school 
district that placed the teacher on unrequested leave of 
absence, another school district in Minnesota, an education 
district, an intermediate school district, an ECSU, a board 
formed under section 471.59, a technical college, a state 
residential academy, the Minnesota center for arts education, a 
vocational center, or a special education cooperative.  These 
entities do not include a school district in another state, a 
Minnesota public post-secondary institution, or a state agency.  
Only amounts earned by the teacher as a substitute teacher or in 
a position requiring a valid Minnesota teaching license shall be 
subtracted.  A teacher may decline any offer of employment as a 
teacher without loss of rights to severance pay. 
    To determine the amount of severance pay that is due for 
the first six months following termination of the teacher's 
salary, the district may require the teacher to provide 
documented evidence of the teacher's employers and gross 
earnings during that period.  The district shall pay the teacher 
the amount of severance pay it determines to be due from the 
proceeds of the levy for this purpose.  To determine the amount 
of severance pay that is due for the second six months of the 12 
months following the termination of the teacher's salary, the 
district may require the teacher to provide documented evidence 
of the teacher's employers and gross earnings during that 
period.  The district shall pay the teacher the amount of 
severance pay it determines to be due from the proceeds of the 
levy for this purpose.  
    A teacher who receives severance pay under this subdivision 
waives all further reinstatement rights under section 125.12, 
subdivision 6a or 6b.  If the teacher receives severance pay, 
the teacher shall not receive credit for any years of service in 
the district paying severance pay prior to the year in which the 
teacher becomes eligible to receive severance pay. 
    The severance pay shall be equivalent to the teacher's 
salary for one year and is subject to section 465.72.  The 
district may levy annually according to section 275.125, 
subdivision 4, for the severance pay. 
    Sec. 19.  Minnesota Statutes 1990, section 122.91, 
subdivision 5, is amended to read: 
    Subd. 5.  [JOINDER AND WITHDRAWAL.] (a) A member school 
district must not withdraw from an education district that 
receives revenue under section 124.2721 before the end of the 
fiscal year for which a levy under section 124.2721 has been 
certified. 
    (b) Notwithstanding paragraph (a), a school district that 
certified a levy under section 124.2725 for fiscal year 1991 
124.2721 may apply to the department of education to transfer 
from one the education district to another to comply with 
section 122.241, subdivision 2, clause (2). which it currently 
belongs to a different education district before June 1 of the 
calendar year after the levy was certified if any of the 
following conditions are met as a result of the transfer: 
    (1) all member school districts of a special education 
cooperative established under section 120.17 or 471.59, or a 
cooperative center for vocational education established under 
section 123.351 become members of the same education district; 
    (2) the location of the school district allows the 
education district into which the school district is applying to 
transfer to provide services more effectively than the current 
education district; or 
    (3) the number of boards governing special education 
cooperatives established under section 120.17 or 471.59, 
cooperative centers for vocational education established under 
section 123.351, or other educational organizations that operate 
within the geographic area of either education district is 
reduced. 
    (c) The department of education must accept or reject an 
application for transfer under this section within 30 days of 
receiving the application.  The commissioner must adjust the 
revenue of both education districts so that the education 
district revenue attributable to the transferring school 
district is transferred from the previous education district to 
the new education district. 
    (c) (d) By August 1 of each year, an education district 
must notify the department of education concerning which school 
districts will be members of the education district for the 
purposes of certifying to the department of education the amount 
of revenue to be raised under section 124.2721. 
    Sec. 20.  Minnesota Statutes 1990, section 122.94, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No district shall be required by an agreement or 
otherwise to participate in or provide financial support for a 
education district for a time period in excess of one fiscal 
year.  Any agreement, part of an agreement, or other type of 
requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of debt incurred by 
the education district board before the effective date of this 
section.  The school district is liable only until the 
obligation or debt is discharged and only according to the 
payment schedule in effect on June 30, 1993, except that the 
payment schedule may be altered for the purpose of restructuring 
debt outstanding on the effective date of this section if the 
annual payments of the school district are not increased and if 
the total obligation of the school district for its share of 
debt is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities provided by the 
education district or to withdraw from the education district, 
the school board of the school district shall adopt a resolution 
and notify the education district board of its decision on or 
before February 1 of any year.  The cessation or withdrawal 
shall be effective June 30 of the same year or, at the option of 
the school board, June 30 of the following fiscal year.  
    (d) Before incurring debt, the board of an education 
district shall adopt a resolution proposing to incur debt and 
the proposed financial effect of the debt upon each school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph and to comply with 
the statutory deadlines set forth in article 9, section 33, and 
sections 125.12 and 125.17.  The board of the education district 
shall notify each participating school board of the contents of 
the resolution.  Within 120 days of receiving the resolution of 
the board of the education district, the school board of the 
participating district shall adopt a resolution stating: 
    (1) its concurrence with incurring other debt; 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
debt; or 
    (3) its intention to withdraw from the education district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of debt as proposed by the education 
district board.  A school board adopting a resolution according 
to clause (2) is not liable for the debt, as proposed by the 
board of the education district, related to the services or 
activities in which the school district ceases participating or 
providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the debt 
proposed by the education district board.  
    (e) On and after July 1, 1993, a school district is liable 
according to paragraph (d) for its share of debt incurred by the 
education district to the extent that the debt is directly 
related to the services or activities in which the school 
district participates or for which the school district provides 
financial support.  The school district has continued liability 
only until the debt is discharged and only according to the 
payment schedule in effect at the time the education district 
board provides notice to the school board, except that the 
payment schedule may be altered for the purpose of restructuring 
debt if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
the debt is not increased. 
    Sec. 21.  Minnesota Statutes 1990, section 122.94, 
subdivision 6, is amended to read: 
    Subd. 6.  [COMMON ACADEMIC CALENDAR.] For 1991-1992 and 
later school years, the agreement must require a common academic 
calendar for all member districts of an education district.  For 
purposes of this subdivision, a common academic calendar must 
include at least the following: 
    (1) the number of days of instruction at least the same 
number of instructional days in common as are offered by the 
member district with the fewest number of instructional days; 
    (2) the same first and last days of instruction in a school 
year; and 
    (3) the specific days reserved for staff development at 
least the same number of staff development days in common as are 
provided by the member district with the fewest number of staff 
development days. 
    Before the 1990-1991 school year, each education district 
must report to the state board of education on ways that other 
components of the academic calendar in each member district will 
affect the implementation of the five-year plan described in 
section 122.945.  Other components include the length of the 
school day, the time the school day begins and ends, and the 
number of periods in the day. 
    Sec. 22.  Minnesota Statutes 1990, section 123.35, is 
amended by adding a subdivision to read: 
    Subd. 19.  [LIMITATION ON ALL AGREEMENTS.] (a) No district 
shall be required by an agreement or otherwise to participate in 
or provide financial support for a regional center for a time 
period in excess of one fiscal year.  Any agreement, part of an 
agreement, or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a district for its share of bonded indebtedness or 
other debt incurred by the center before the effective date of 
this section.  The district is liable only until the obligation 
or debt is discharged and only according to the payment schedule 
in effect on June 30, 1993, except that the payment schedule may 
be altered for the purpose of restructuring debt or refunding 
bonds outstanding on the effective date of this section if the 
annual payments of the district are not increased and if the 
total obligation of the 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 provided by the 
center or to withdraw from the center, the school board shall 
adopt a resolution and notify the center of its decision on or 
before February 1 of any year.  The cessation or withdrawal 
shall be effective June 30 of the same year or, at the option of 
the school board, June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of a center shall 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 
shall be adopted within a time sufficient to allow the school 
board to adopt a resolution within the time permitted by this 
paragraph and to comply with the statutory deadlines set forth 
in article 9, section 33, and sections 125.12 and 125.17.  The 
board of the center shall notify each participating school board 
of the contents of the resolution.  Within 120 days of receiving 
the resolution of the board of the center, 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 withdraw from the regional center. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the regional center.  A school board 
adopting a resolution according to clause (2) is not liable for 
the bonded indebtedness or other debt, as proposed by the board 
of the regional center, related to the services or activities in 
which the district ceases participating or providing financial 
support.  A school board adopting a resolution according to 
clause (3) is not liable for the bonded indebtedness or other 
debt proposed by the board of the regional center.  
    (e) On and after July 1, 1993, a district is liable 
according to paragraph (d) for its share of bonded indebtedness 
or other debt incurred by the regional center 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 
board of the regional center 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. 
    Sec. 23.  Minnesota Statutes 1990, section 123.351, 
subdivision 8, is amended to read: 
    Subd. 8.  [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 
approval by majority vote of a school board, of the center 
board, and of the state board of education, an adjoining school 
district may become a member in the center and be governed by 
the provisions of this section and the agreement in effect. 
    (a) No district shall be required by an agreement or 
otherwise to participate in or provide financial support for a 
center for a time period in excess of one fiscal year.  Any 
agreement, part of an agreement, or other type of requirement to 
the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a district for its share of bonded indebtedness or 
other debt incurred by the center before the effective date of 
this section.  The district is liable only until the obligation 
or debt is discharged and only according to the payment schedule 
in effect on June 30, 1993, except that the payment schedule may 
be altered for the purpose of restructuring debt or refunding 
bonds outstanding on the effective date of this section if the 
annual payments of the district are not increased and if the 
total obligation of the 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 provided by the 
center or to withdraw from the center, the school board shall 
adopt a resolution and notify the center of its decision on or 
before February 1 of any year.  The cessation or withdrawal 
shall be effective June 30 of the same year or, at the option of 
the school board, June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of a center shall 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 
shall be adopted within a time sufficient to allow the school 
board to adopt a resolution within the time permitted by this 
paragraph and to comply with the statutory deadlines set forth 
in article 9, section 33, and sections 125.12 and 125.17.  The 
board of the center shall notify each participating school board 
of the contents of the resolution.  Within 120 days of receiving 
the resolution of the board of the center, 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 withdraw from the regional center. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the regional center.  A school board 
adopting a resolution according to clause (2) is not liable for 
the bonded indebtedness or other debt, as proposed by the board 
of the center, related to the services or activities in which 
the district ceases participating or providing financial 
support.  A school board adopting a resolution according to 
clause (3) is not liable for the bonded indebtedness or other 
debt proposed by the board of the center.  
    (e) On and after July 1, 1993, a district is liable 
according to paragraph (d) for its share of bonded indebtedness 
or other debt incurred by the center 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 
board of the center 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.  
    Any participating district may withdraw from the center and 
from the agreement in effect by a majority vote of the full 
board membership of the participating school district desiring 
withdrawal and upon compliance with provisions in the agreement 
establishing the center.  Upon receipt of the withdrawal 
resolution reciting the necessary facts, the center board shall 
file a certified copy with the county auditors of the counties 
affected.  The withdrawal shall become effective at the end of 
the next following school year July 1 but the withdrawal shall 
not affect the continued liability of the withdrawing district 
for bonded indebtedness it incurred prior to the effective 
withdrawal date. 
    Sec. 24.  Minnesota Statutes 1990, section 123.58, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No district shall be required by an agreement or 
otherwise to participate in or provide financial support for an 
ECSU for a time period in excess of one fiscal year.  Any 
agreement, part of an agreement, or other type of requirement to 
the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a district for its share of debts or obligations 
incurred by the ECSU before the effective date of this section.  
The district is liable only until the debt or obligation is 
discharged and only according to the payment schedule in effect 
on the effective date of this section, except that the payment 
schedule may be altered for the purpose of restructuring or 
refunding debt or obligations outstanding on the effective date 
of this section if the annual payments of the district are not 
increased and if the total obligation of the district for its 
share of outstanding debt or obligations is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities provided by the 
ECSU or to withdraw from the ECSU, the school board shall adopt 
a resolution and notify the ECSU of its decision on or before 
February 1 of any year.  The cessation or withdrawal shall be 
effective June 30 of the same year or, at the option of the 
school board, June 30 of the following fiscal year.  
    (d) Before incurring debt or obligations, the ECSU board 
shall adopt a resolution proposing to incur debt or obligations 
and the proposed financial effect of the debt or obligations 
upon each participating district.  The resolution shall be 
adopted within a time sufficient to allow the school board to 
adopt a resolution within the time permitted by this paragraph 
and to comply with the statutory deadlines set forth in article 
9, section 33, and sections 125.12 and 125.17.  The ECSU board 
shall notify each participating school board of the contents of 
the resolution.  Within 120 days of receiving the resolution of 
the ECSU board, the school board of the participating district 
shall adopt a resolution stating: 
    (1) its concurrence with incurring the debt or obligations; 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
debt or obligations; or 
    (3) its intention to withdraw from the ECSU. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of debt or obligations as proposed 
by the ECSU board.  A school board adopting a resolution 
according to clause (2) is not liable for the debt or 
obligations, as proposed by the ECSU board, related to the 
services or activities in which the district ceases 
participating or providing financial support.  A school board 
adopting a resolution according to clause (3) is not liable for 
the debt or obligations proposed by the ECSU board.  
    (e) After the effective date of this section, a district is 
liable according to paragraph (d) for its share of debt or 
obligations incurred by the ECSU to the extent that the debt or 
obligations 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 debt or obligation is discharged and 
only according to the payment schedule in effect at the time the 
ECSU board provides notice to the school board, except that the 
payment schedule may be altered for the purpose of refunding or 
restructuring debt or obligations if the annual payments of the 
district are not increased and if the total obligation of the 
district for the outstanding debt or obligation is not increased.
    Sec. 25.  Minnesota Statutes 1990, section 123.58, is 
amended by adding a subdivision to read: 
    Subd. 9a.  [ALLOCATION OF STATE APPROPRIATION.] The 
appropriation for ECSUs shall be allocated among the ECSUs 
according to the allocation for fiscal year 1991.  Payment of 
the amount appropriated shall be to school districts.  Each 
school district shall receive a payment equal to: 
    (1) the number of pupil units in the district divided by 
the number of pupil units in all of the districts that are 
members of the ECSU; times 
    (2) the allocation for the ECSU of which the district is a 
member. 
    The payment shall be used by the district to purchase 
educational services from an ECSU, another school district, or 
other provider, or to provide other educational services. 
    Sec. 26.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ELIGIBILITY.] A school district is eligible for 
education district revenue if the district certified a levy for 
education district revenue in 1992 for taxes payable in 1993.  
The pupil units of a school district that is a member of 
intermediate district No. 287, 916, or 917 may not be used to 
obtain revenue under this section.  The pupil units of a school 
district may not be used to obtain revenue under this section 
and section 124.575. 
    Sec. 27.  Minnesota Statutes 1990, section 124.2721, 
subdivision 2, is amended to read: 
    Subd. 2.  [REVENUE.] Each year the education district board 
shall certify to the department of education the amount of 
education district revenue to be raised.  Education district 
revenue shall be the lesser of:  
    (1) the amount certified by the education district board;, 
or 
    (2) the sum of: 
    (i) $60 in basic education district revenue; and 
    (ii) $50 for education districts authorized to receive 
revenue under Laws 1990, chapter 562, article 6, section 36, 
subdivision 2, $50 times the actual pupil units in the education 
district.  
    Sec. 28.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [REVENUE.] For fiscal year 1994 and thereafter, 
education district revenue shall be $50 times the number of 
pupil units in the district.  
    Sec. 29.  Minnesota Statutes 1990, section 124.2721, 
subdivision 3, is amended to read: 
    Subd. 3.  [LEVY.] The education district levy is equal to 
the following:  
    (1) the education district revenue according to subdivision 
2, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted net tax capacity of the 
education district divided by the number of actual pupil units 
in the education district to an amount equal to the sum of 
subdivision 2, clause (2), items (i) and (ii), for which the 
education district is eligible $50 divided by 1.87 percent.  
    The department of education shall allocate the levy amount 
proportionately among the member districts based on adjusted tax 
capacity.  The member districts shall levy the amount allocated. 
    Sec. 30.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [LEVY.] Beginning with the levy attributable to 
fiscal year 1994 and thereafter, the education district levy for 
a school district is equal to the following:  
    (1) the sum of the education district revenue according to 
subdivision 2 for all member school districts of the education 
district, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted net tax capacity of the 
education district divided by the number of actual pupil units 
in the education district to the amount in clause (1) divided by 
1.87 percent, times 
    (3) the ratio of the adjusted net tax capacity of the 
school district to the total adjusted net tax capacity of the 
education district.  
    Sec. 31.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [AID.] For fiscal year 1994 and thereafter, 
education district aid equals the education district revenue 
minus the education district levy, times the ratio of the actual 
amount levied to the permitted levy.  If the permitted education 
district levy exceeds the education district revenue, the 
department shall reduce other aids due the district by the 
amount equal to the difference between the permitted levy and 
the revenue.  The amount reduced is annually appropriated to the 
department of education for aid payments under this subdivision. 
    Sec. 32.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [USES OF REVENUE.] For fiscal year 1994 and 
thereafter, education district revenue shall be used only for 
one or more of the following purposes: 
    (1) purchase educational programs offered by another school 
district, education district, secondary vocational cooperative, 
special education cooperative, intermediate school district, 
joint powers board, or an ECSU; 
    (2) provide educational programs offered by an education 
district; 
    (3) provide additional revenue for early childhood family 
education programs, head start programs, or other educational 
programs for children who have not entered kindergarten; 
    (4) provide additional revenue for early childhood health 
and developmental screening or other health services for 
children from birth through 12th grade; 
    (5) provide services needed by pupils described in section 
126.22 or children of any age who have characteristics, as 
designated by the district, that may interfere with learning and 
developing; 
    (6) provide secondary course offerings if the courses have 
specific learner outcomes and teachers participate in 
determining the outcomes; 
    (7) provide preparation time for elementary teachers or 
additional revenue for staff development for outcome-based 
education or site-based decision making; 
    (8) provide revenue for expenditures related to 
interdistrict cooperation according to section 122.541, 
agreements for secondary education according to section 122.535, 
additional revenue for cooperation and combination according to 
sections 122.241 to 122.248, dissolution and attachment 
according to section 122.22, or consolidation according to 
section 122.23; 
    (9) provide additional revenue for education programs for 
adults to earn high school diplomas or equivalency certificates; 
    (10) collaborate with local health and human service 
agencies to provide comprehensive and coordinated services for 
children and families; 
    (11) implement a career teacher program according to 
sections 124C.27 to 124C.31; 
    (12) provide extended day programs for children in 
elementary school; 
    (13) pay fees charged by a regional management information 
center, according to section 121.935, subdivision 6, or an 
educational cooperative service unit, according to section 
123.58, subdivision 9; or 
    (14) make repairs or improvements to buildings as required 
by a fire safety inspection according to section 121.1502. 
    The school district may provide the programs and services 
itself or contract with a public education organization or a 
public or private health or human service organization.  The 
school district shall not use education district revenue to 
increase the salaries of the employees of the school district.  
    Sec. 33.  Minnesota Statutes 1990, section 124.2721, is 
amended by adding a subdivision to read: 
    Subd. 5b.  [FUND TRANSFER AUTHORIZED.] For fiscal year 1994 
and thereafter, notwithstanding section 121.912, a district 
using the education district revenue for fire safety 
improvements required by fire inspections shall transfer each 
year the amount needed to make the improvements from the general 
fund to the capital expenditure fund.  A district using 
education district revenue for purposes that would otherwise be 
paid from the community service fund shall transfer each year 
the amount needed from the general fund to the community service 
fund. 
    Sec. 34.  Minnesota Statutes 1990, section 124.2725, 
subdivision 4, is amended to read: 
    Subd. 4.  [INCREASING LEVY.] (a) For districts that combine 
without cooperating, the percentage in subdivision 3, clause 
(2), shall be: 
    (1) 50 percent for the first year of combination; and 
    (2) 25 percent for the second year of combination. 
    (b) For districts that combine after one year of 
cooperation, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the first year of combination; 
    (3) 50 percent for the second year of combination; and 
    (4) 25 percent for the third year of combination. 
    (b) (c) For districts that combine after two years of 
cooperation, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the second year of cooperation; 
    (3) 50 percent for the first year of combination; and 
    (4) 25 percent for the second year of combination. 
    Sec. 35.  Minnesota Statutes 1990, section 124.2725, 
subdivision 5, is amended to read: 
    Subd. 5.  [COOPERATION AND COMBINATION AID.] (a) Districts 
that combine without cooperating shall receive cooperation and 
combination aid for the first two years of combination.  
Cooperation and combination aid shall not be paid after two 
years of combining. 
    (b) Districts that combine after one year of cooperation 
shall receive cooperation and combination aid for the first year 
of cooperation and three years of combination.  Cooperation and 
combination aid is equal to the difference between the 
cooperation and combination revenue and the cooperation and 
combination levy.  Aid shall not be paid after three years of 
combining.  
    (b) (c) Districts that combine after two years of 
cooperation shall receive cooperation and combination aid for 
the first two years of cooperation and the first two years of 
combination.  Cooperation and combination aid is equal to the 
difference between the cooperation and combination revenue and 
the cooperation and combination levy.  Aid shall not be paid 
after two years of combining. 
    (d) In each case, cooperation and combination aid is equal 
to the difference between the cooperation and combination 
revenue and the cooperation and combination levy. 
    Sec. 36.  Minnesota Statutes 1990, section 124.2725, 
subdivision 6, is amended to read: 
    Subd. 6.  [ADDITIONAL AID.] In addition to the aid in 
subdivision 5, districts shall receive aid under this 
subdivision.  For the first year of cooperation, a district 
shall receive, for each resident and nonresident pupil receiving 
instruction in a cooperating district, $100 times the actual 
pupil units.  For the first year of combination, the combined 
district shall receive, for each resident and nonresident pupil 
receiving instruction in the combined district, $100 times the 
actual pupil units according to the following: 
    (1) for districts that combine without cooperating, $100 
times the actual pupil units in the district in the first year 
of combination; or 
    (2) for districts that combine after one year of 
cooperation, $100 times the actual pupil units in each district 
for the first year of cooperation, for each resident and 
nonresident pupil receiving instruction in the cooperating 
district, and $100 times the actual pupil units in the combined 
district for the first year of combination; or 
    (3) for districts that combine after two years of 
cooperation, $100 times the actual pupil units in each district 
for the first year of cooperation, for each resident and 
nonresident pupil receiving instruction in the cooperating 
district, and $100 times the actual pupil units in the combined 
district for the first year of combination.  
    Sec. 37.  Minnesota Statutes 1990, section 124.2725, 
subdivision 8, is amended to read: 
    Subd. 8.  [PERMANENT REVENUE.] (a) For the third year of 
combination and thereafter, When a combined district is no 
longer eligible for aid under subdivision 5, it may receive 
revenue according to this subdivision.  A combined district that 
is not a member of an education district that receives revenue 
under section 124.2721 may levy each year the lesser of 
    (i) $50 times the actual pupil units in the combined 
district; or 
    (ii) $50,000.  
    (b) A combined district that is a member of an education 
district receiving revenue under section 124.2721 must not 
receive revenue under this subdivision. 
    Sec. 38.  Minnesota Statutes 1990, section 124.2725, 
subdivision 10, is amended to read: 
    Subd. 10.  [REVENUE LIMIT.] Revenue under this section 
shall not exceed the revenue received by cooperating districts 
or a combined district with 2,000 actual pupil units.  Revenue 
for cooperating districts subject to the limitation in this 
subdivision shall be allocated according to the number of pupil 
units in the districts. 
    Sec. 39.  [124.2727] [INTERMEDIATE DISTRICT REVENUE.] 
    Subdivision 1.  [ELIGIBILITY.] A school district is 
eligible for intermediate school district revenue if the 
property in the school district was subject to taxation by or on 
behalf of an intermediate school district for taxes payable in 
1991.  Independent school district Nos. 138 and 141 are eligible 
for intermediate school district revenue upon joining 
intermediate district No. 916. 
    Subd. 2.  [REVENUE.] Intermediate school district revenues 
for an eligible school district are equal to the product of: 
    (1) the greater of: 
    (i) the quotient obtained by dividing five-sixths of the 
levy certified by the intermediate school district for taxes 
payable in 1989 by the sum of the actual pupil units of the 
eligible school districts for the fiscal year to which the levy 
is attributable; or 
    (ii) $50, times 
    (2) the actual pupil units in the school district for the 
year to which the levy is attributable. 
    Subd. 3.  [LEVY.] The intermediate school district levy for 
an eligible school district is equal to the product of: 
    (1) the quotient obtained by dividing the sum of the 
amounts computed in subdivision 2 for all eligible member 
districts of the intermediate school district by the total 
adjusted net tax capacity of the intermediate school district; 
times 
    (2) the adjusted net tax capacity of the school district. 
    Subd. 4.  [REVENUE ADJUSTMENTS.] The intermediate school 
district revenue adjustment for an eligible school district is 
equal to the intermediate school district revenue minus the 
intermediate school district levy times the ratio of the actual 
amount levied to the permitted levy.  If the permitted 
intermediate school district levy exceeds the intermediate 
school district revenue, the department shall reduce other aid 
due the district by the amount equal to the difference between 
the permitted levy and the revenue.  The amount reduced is 
annually appropriated to the department of education for revenue 
adjustments under this subdivision.  
    Subd. 5.  [REVENUE USES.] Five-elevenths of the proceeds of 
the revenue must be used for special education and six-elevenths 
of the proceeds of the revenue must be used for secondary 
vocational education.  The district may provide special 
education or secondary vocational education, or both.  The 
district may purchase some or all of either type of education 
from the intermediate district, another school district, or any 
other provider. 
    Subd. 6.  [ALTERNATIVE LEVY AUTHORITY.] (a) An intermediate 
school district may levy, as a single taxing district, according 
to this paragraph, an amount that may not exceed the greater of: 
    (1) five-sixths of the levy certified for taxes payable in 
1989; or 
    (2) the lesser of (i) $50 times the actual pupil units in 
each participating district for the fiscal year to which the 
levy is attributable, or (ii) 1.43 percent of the adjusted net 
tax capacity.  The levy shall be certified according to section 
275.07.  Upon such certification, the county auditors shall levy 
and collect the levies and remit the proceeds of the levy to the 
intermediate school district.  The levies shall not be included 
in computing the limitation upon the levy of any of the 
participating districts. 
    (b) Five-sixths of the proceeds of the levy shall be used 
for special education.  Six-elevenths of the proceeds of the 
levy shall be used for secondary vocational education. 
    (c) To levy according to paragraph (a), a majority of the 
full membership of the school board of each member of the 
intermediate school district shall adopt a resolution in August 
of any year stating its decision not to levy according to this 
section and authorizing the intermediate district to levy 
according to paragraph (a).  Any member district may adopt a 
resolution by the following February 1 or February 1 of any 
subsequent year to levy as a school district the amount 
authorized by this section.  The resolution may or may not also 
contain the school board's decision to withdraw from the 
intermediate school district or to cease participating in or 
providing financial support for any of the services or 
activities of the intermediate school district.  Upon withdrawal 
from or cessation of participation in or support for the 
services or activities of the intermediate district, the board 
of the intermediate district shall pay to the district $50 times 
the number of actual pupil units in the school district, or a 
prorated amount if the member district ceases participation in 
or providing financial support for any activities or services of 
the intermediate district. 
     Sec. 40.  Minnesota Statutes 1990, section 124.493, is 
amended by adding a subdivision to read: 
    Subd. 3.  [APPLICATIONS.] Districts that apply for a 
cooperative secondary facilities grant after May 1, 1991, shall: 
    (1) submit a plan as set forth in section 122.242 for 
approval by the state board of education; and 
    (2) comply with the provisions of sections 122.243 to 
122.247, applicable to combined districts. 
    The districts are not eligible for cooperation and 
combination revenue under section 124.2725.  Sections 124.494, 
124.4945, and 124.4946 do not apply to districts applying for a 
grant after May 1, 1991, except for provisions in the sections 
relating to acquiring, constructing, remodeling, or improving a 
building or site of a cooperative secondary facility. 
    Sec. 41.  Minnesota Statutes 1990, section 124.575, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ELIGIBILITY.] Beginning in fiscal year 1994 a 
school district is eligible for secondary vocational cooperative 
revenue if the school district certified a levy for secondary 
vocational cooperative revenue in 1992 for taxes payable in 
1993.  The pupil units of a district that is a member of 
intermediate school district No. 287, 916, or 917 may not be 
used to obtain revenue under this section.  The pupil units of a 
district may not be used to obtain revenue under this section 
and section 124.2721. 
    Sec. 42.  Minnesota Statutes 1990, section 124.575, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [REVENUE.] For fiscal year 1994 and thereafter, 
secondary vocational cooperative revenue shall be $20 times the 
actual pupil units in the district. 
    Sec. 43.  Minnesota Statutes 1990, section 124.575, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [LEVY.] Beginning with the levy attributable to 
fiscal year 1994 and thereafter, the secondary vocational 
cooperative levy for a school district is equal to the following:
    (1) the sum of the secondary vocational cooperative revenue 
according to subdivision 2 for all member school districts of 
the secondary vocational cooperative according to subdivision 1, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted net tax capacity of the 
secondary vocational cooperative divided by the number of actual 
pupil units in the secondary vocational cooperative to an amount 
equal to $20 divided by .78 percent,times 
    (3) the ratio of the adjusted net tax capacity of the 
school district to the total adjusted net tax capacity of the 
secondary vocational cooperative. 
    Sec. 44.  Minnesota Statutes 1990, section 124.575, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [AID.] For fiscal year 1994 and thereafter, 
secondary vocational cooperative aid equals the secondary 
vocational cooperative revenue minus the secondary vocational 
cooperative levy, times the ratio of the actual amount levied to 
the permitted levy.  If the permitted amount of the secondary 
vocational cooperative levy exceeds the secondary vocational 
cooperative revenue, the department shall reduce other aids due 
the district by the amount equal to the difference between the 
permitted levy and the revenue.  The amount reduced is annually 
appropriated to the department of education for aid payments 
under this subdivision. 
    Sec. 45.  Minnesota Statutes 1990, section 124.575, is 
amended by adding a subdivision to read: 
    Subd. 5.  [USE OF REVENUE.] Secondary vocational 
cooperative revenue shall be used to provide or purchase 
vocational offerings, special education for handicapped pupils, 
or other educational programs or services offered by a secondary 
vocational center, school district, or other provider. 
    Sec. 46.  Minnesota Statutes 1990, section 124B.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [REFERENDUM LEVY.] (a) The amount of general 
education revenue certified by an education district board under 
section 124B.10 may be increased in any amount that is approved 
by the voters of the education district at a referendum called 
for the purpose.  The referendum may be called by the education 
district board or must be called by the education district board 
upon written petition of qualified voters of the education 
district.  The referendum must be held on the first Tuesday 
after the first Monday in November.  The ballot shall state the 
maximum amount of the increased levy as a percentage of net tax 
capacity per actual pupil unit, the total amount that will be 
raised by that local tax rate in the first year it is to be 
levied, and that the local tax rate proceeds of the levy must be 
used to finance school operations.  The ballot shall designate a 
specific number of years for which the referendum authorization 
applies which may not exceed five years.  The ballot may contain 
a text with the information required in this subdivision and a 
question stating substantially the following:  
    "Shall the increase in the levy proposed by (petition to) 
the board of ........., Education District No. .., be approved?" 
    (b) If An approved, the amount provided by the approved 
local tax rate applied to the net tax capacity per actual pupil 
unit times the number of actual pupil units in the education 
district for the fiscal year before the year the levy is 
certified is authorized for certification for the number of 
years approved, if applicable, or until revoked or reduced by 
the voters of the education district at a later referendum. 
     (c) The education district board shall prepare and deliver 
by first class mail at least 15 days but no more than 30 days 
prior to the day of the election to each taxpayer at the address 
listed on each member district's current year's assessment roll, 
a notice of the referendum and the proposed levy increase.  For 
the purpose of giving mailed notice under this subdivision, 
owners shall be those shown to be owners on the records of the 
county auditor or, in any county where tax statements are mailed 
by the county treasurer, on the records of the county 
treasurer.  Every property owner whose name does not appear on 
the records of the county auditor or the county treasurer shall 
be deemed to have waived this mailed notice unless the owner has 
requested in writing that the county auditor or county 
treasurer, as the case may be, include the name on the records 
for this purpose.  The notice must project the anticipated 
amount of tax increase in annual dollars and annual percentage 
for typical residential homesteads, agricultural homesteads, 
apartments, and commercial-industrial property within the 
education district. 
    (d) The notice must include the following statement:  "In 
1989, the legislature reduced property taxes for education by 
increasing the state share of funding for education.  However, 
state aid for cities and townships was reduced by a 
corresponding amount.  As a result, property taxes for cities 
and townships may increase.  "Passage of this referendum will 
result in an increase in your property taxes." 
    (e) A referendum on the question of revoking or reducing 
the increased levy amount authorized under paragraph (a) may be 
called by the education district board and must be called by the 
education district board upon the written petition of qualified 
voters of the education district.  A levy approved by the voters 
of the education district under paragraph (a) must be made at 
least once before it is subject to a referendum on its 
revocation or reduction for subsequent years.  Only one election 
may be held to revoke or reduce a levy for any specific year and 
for later years. 
     (f) A petition authorized by paragraph (a) or (e) shall be 
effective if signed by a number of qualified voters in excess of 
15 percent of the average number of voters at the two most 
recent districtwide school elections in all the member school 
districts.  A referendum invoked by petition must be held on the 
day specified in paragraph (a).  
     (g) The approval of 50 percent plus one of those voting on 
the question is required to pass a referendum. 
     (h) Within 30 days after the education district holds a 
referendum according to this subdivision, the education district 
shall notify the commissioner of education of the results of the 
referendum. 
     (i) The department shall allocate the amount certified by 
the education district board under paragraph (a) or subdivision 
1 proportionately among the member districts based on net tax 
capacity.  The member districts shall may levy an amount up to 
the amount allocated. 
    (j) Each year, a member district shall transfer referendum 
revenue to the education district board according to this 
subdivision.  By June 20 and November 30 of each year, an amount 
must be transferred equal to: 
    (1) 50 percent times 
    (2) the amount certified in this subdivision minus 
homestead and agricultural credit aid allocated for that levy 
according to section 273.1398, subdivision 6. 
    Sec. 47.  Minnesota Statutes 1990, section 136D.22, is 
amended by adding a subdivision to read: 
    Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No school district shall be required by an 
agreement or otherwise to participate in or provide financial 
support for an intermediate school district for a time period in 
excess of one fiscal year.  Any agreement, part of an agreement, 
or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before the effective date of this section.  The school 
district is liable only until the obligation or debt is 
discharged and only according to the payment schedule in effect 
on the effective date of this section, except that the payment 
schedule may be altered for the purpose of restructuring debt or 
refunding bonds outstanding on the effective date of this 
section if the annual payments of the school 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 provided by the 
intermediate district or to withdraw from the intermediate 
district, the school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of an intermediate district shall 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 school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph and to comply with 
the statutory deadlines set forth in article 9, section 33, and 
sections 125.12 and 125.17.  The intermediate board shall notify 
each participating school board of the contents of the 
resolution.  Within 120 days of receiving the resolution of the 
intermediate board, 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 withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the bonded 
indebtedness or other debt proposed by the board of the 
intermediate district. 
    (e) After the effective date of this section, a school 
district is liable according to paragraph (d) for its share of 
bonded indebtedness or other debt incurred by the intermediate 
district to the extent that the bonds or other debt are directly 
related to the services or activities in which the school 
district participates or for which the school district provides 
financial support.  The school 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 
board of the intermediate district 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 school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    Sec. 48.  [136D.281] [BONDS.] 
    Subdivision 1.  [PURPOSE.] The intermediate school board, 
acting in its own behalf, may issue bonds for the acquisition 
and betterment of school facilities or equipment or for the 
funding or refunding of outstanding bonds, warrants, orders, or 
certificates of indebtedness. 
    Subd. 2.  [GENERAL LAW.] Chapter 475 shall be applicable in 
all respects. 
    Subd. 3.  [RESOLUTION.] The purpose and the amount of any 
borrowing shall first be approved by resolution of the school 
board of the intermediate school district.  When the resolution 
has been adopted by the intermediate school board it shall be 
published once in a newspaper of general circulation in said 
district. 
    Subd. 4.  [REFERENDUM.] The intermediate school board shall 
not sell and issue bonds for acquisition or betterment purposes 
until the question of their issuance has been submitted to the 
voters of the intermediate school district at a special election 
held in and for the intermediate district.  The date of the 
election, the question to be submitted, and all other necessary 
conduct of the election shall be fixed by the intermediate 
school board.  The election shall be conducted and canvassed 
under the direction of the intermediate school board in 
accordance with chapter 205A, insofar as applicable. 
    If a majority of the total number of votes cast on the 
question within the intermediate school district is in favor of 
the question, the intermediate school board may proceed with the 
sale and issuance of the bonds. 
    Subd. 5.  [GENERAL OBLIGATION BONDS.] The full faith, 
credit, and unlimited taxing powers of the intermediate school 
district shall be pledged to the payment of all bonds and 
certificates of indebtedness, and none of the obligations shall 
be included in the net debt of any participating school district 
as defined by section 475.51, subdivision 4, or any other 
similar law. 
    Subd. 6.  [LEVIES FOR PAYMENT.] The intermediate school 
board upon awarding a contract for the sale of the bonds shall 
certify to the county auditor or county auditors the years and 
amounts of taxes required to be levied for the payment of the 
bonds as provided by section 475.61.  The county auditor shall 
cause taxes to be spread in each year until bonds and interest 
have been paid upon all of the assessable, taxable valuation of 
the intermediate school district.  
    Subd. 7.  [TAX EXEMPT SECURITIES.] In all other respects 
chapter 475 shall apply and the bonds shall be deemed authorized 
securities within the provisions of section 50.14 and shall be 
deemed instruments of a public governmental agency. 
    Sec. 49.  Minnesota Statutes 1990, section 136D.29, is 
amended to read: 
    136D.29 [TERM OF AGREEMENT; DISSOLUTION, BOND TAXES.] 
    The agreement shall state the term of its duration and may 
provide for the method of termination and distribution of assets 
after payment of all liabilities of the joint school board.  No 
termination shall affect the obligation to continue to levy 
taxes required for payment of any bonds issued as provided in 
section 136D.28 before termination. 
    Sec. 50.  Minnesota Statutes 1990, section 136D.71, is 
amended to read: 
    136D.71 [LISTED DISTRICTS MAY FORM INTERMEDIATE DISTRICT.] 
    Subdivision 1.  [AGREEMENT.] Notwithstanding any other law 
to the contrary, two or more of the independent school districts 
numbered 12 and 16 of Anoka county, independent school districts 
numbered 621, 622, 623, and 624 of Ramsey county, and 
independent school districts numbered 832, 833, and 834 of 
Washington county, are hereby authorized to enter into an 
agreement to establish a special intermediate school district 
upon majority vote of the full membership of each of the boards 
of the districts entering into the agreement.  When such 
resolution has been adopted by the board of one of the 
districts, it shall be published once in a newspaper of general 
circulation in said district.  If a petition for referendum on 
the question of said district entering into such agreement is 
filed with the clerk of the said board within 60 days after 
publication of such resolution, signed by the qualified voters 
of said district equal to five percent of the number of voters 
at the last annual school election.  No board shall enter into 
such agreement until the question of whether the district shall 
enter into the agreement has been submitted to the voters of 
said district at a special election.  Said election shall be 
conducted and canvassed in accordance with chapter 205A. 
    If a majority of the total number of votes cast on the 
question within said district is in favor of the question, the 
board of said school district may thereupon proceed to enter 
into an agreement to establish the special intermediate school 
district for purposes herein described.  Such school district so 
created shall be known as northeastern metropolitan intermediate 
school district, state of Minnesota.  The commissioner of 
education shall assign an appropriate identification number as 
provided by section 122.03. 
    Subd. 2.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No school district shall be required by an 
agreement or otherwise to participate in or provide financial 
support for an intermediate school district for a time period in 
excess of one fiscal year.  Any agreement, part of an agreement, 
or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before the effective date of this section.  The school 
district is liable only until the obligation or debt is 
discharged and only according to the payment schedule in effect 
on the effective date of this section, except that the payment 
schedule may be altered for the purpose of restructuring debt or 
refunding bonds outstanding on the effective date of this 
section if the annual payments of the school 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 provided by the 
intermediate district or to withdraw from the intermediate 
district, the school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of an intermediate district shall 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 school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph and to comply with 
the statutory deadlines set forth in article 9, section 33, and 
sections 125.12 and 125.17.  The intermediate board shall notify 
each participating school board of the contents of the 
resolution.  Within 120 days of receiving the resolution of the 
intermediate board, 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 withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the bonded 
indebtedness or other debt proposed by the board of the 
intermediate district. 
    (e) After the effective date of this section, a school 
district is liable according to paragraph (d) for its share of 
bonded indebtedness or other debt incurred by the intermediate 
district to the extent that the bonds or other debt are directly 
related to the services or activities in which the school 
district participates or for which the school district provides 
financial support.  The school 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 
board of the intermediate district 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 school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    Sec. 51.  Minnesota Statutes 1990, section 136D.72, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERS.] The district shall be operated 
by a school board of not less than six nor more than 12 
members.  The board shall consist consisting of at least one 
member from each of the school districts within the special 
intermediate school district.  Board members shall be members of 
the school boards of the respective school districts and shall 
be appointed by their respective school boards.  Members shall 
serve at the pleasure of their respective school boards and may 
be subject to recall by a majority vote of the school board.  
They shall report at least quarterly to their boards on the 
activities of the intermediate district.  
    Sec. 52.  Minnesota Statutes 1990, section 136D.76, 
subdivision 2, is amended to read: 
    Subd. 2.  [JOINDER.] An independent school district must 
receive the approval of the state board of education and the 
state board of technical colleges to become a participant in the 
intermediate school district.  Thereafter, upon approval of the 
majority vote of its board and of the intermediate school 
board as well as approval of the state board of education and 
without the requirement for an election, independent school 
district No. 138 of Chisago and Isanti counties and independent 
school district No. 141 of Chisago and Washington counties, and 
any other independent school district adjoining the territory 
embraced in the intermediate school district may become a 
participant in the intermediate school district and be governed 
by the provisions of sections 136D.71 to 136D.77 thereafter.  
The net tax capacity of the property within the geographic 
confines of such district shall become proportionately liable 
for any indebtedness issued, outstanding or authorized of the 
intermediate school district. 
    Sec. 53.  Minnesota Statutes 1990, section 136D.82, is 
amended by adding a subdivision to read: 
    Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No school district shall be required by an 
agreement or otherwise to participate in or provide financial 
support for an intermediate school district for a time period in 
excess of one fiscal year.  Any agreement, part of an agreement, 
or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before the effective date of this section.  The school 
district is liable only until the obligation or debt is 
discharged and only according to the payment schedule in effect 
on the effective date of this section, except that the payment 
schedule may be altered for the purpose of restructuring debt or 
refunding bonds outstanding on the effective date of this 
section if the annual payments of the school 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 provided by the 
intermediate district or to withdraw from the intermediate 
district, the school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of an intermediate district shall 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 school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph and to comply with 
the statutory deadlines set forth in article 9, section 33, and 
sections 125.12 and 125.17.  The intermediate board shall notify 
each participating school board of the contents of the 
resolution.  Within 120 days of receiving the resolution of the 
intermediate board, 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 withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the bonded 
indebtedness or other debt proposed by the board of the 
intermediate district. 
    (e) After the effective date of this section, a school 
district is liable according to paragraph (d) for its share of 
bonded indebtedness or other debt incurred by the intermediate 
district to the extent that the bonds or other debt are directly 
related to the services or activities in which the school 
district participates or for which the school district provides 
financial support.  The school 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 
board of the intermediate district 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 school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    Sec. 54.  [136D.88] [BONDS.] 
    Subdivision 1.  [PURPOSE.] The intermediate school board, 
acting in its own behalf, may issue bonds for the acquisition 
and betterment of school facilities or equipment or for the 
funding or refunding of outstanding bonds, warrants, orders, or 
certificates of indebtedness. 
    Subd. 2.  [GENERAL LAW.] Chapter 475 shall be applicable in 
all respects. 
    Subd. 3.  [RESOLUTION.] The purpose and the amount of any 
borrowing shall first be approved by resolution of the school 
board of the intermediate school district.  When the resolution 
has been adopted by the intermediate school board it shall be 
published once in a newspaper of general circulation in the 
district. 
    Subd. 4.  [REFERENDUM.] The intermediate school board shall 
not sell and issue bonds for acquisition or betterment purposes 
until the question of their issuance has been submitted to the 
voters of the intermediate school district at a special election 
held in and for the intermediate district.  The date of the 
election, the question to be submitted, and all other necessary 
conduct of the election shall be fixed by the intermediate 
school board.  The election shall be conducted and canvassed 
under the direction of the intermediate school board in 
accordance with chapter 205A, insofar as applicable. 
    If a majority of the total number of votes cast on the 
question within the intermediate school district is in favor of 
the question, the intermediate school board may thereupon 
proceed with the sale and issuance of the bonds. 
    Subd. 5.  [GENERAL OBLIGATION BONDS.] The full faith, 
credit, and unlimited taxing powers of the intermediate school 
district shall be pledged to the payment of all bonds and 
certificates of indebtedness, and none of the obligations shall 
be included in the net debt of any participating school district 
as defined by section 475.51, subdivision 4, or any other 
similar law. 
    Subd. 6.  [LEVIES FOR PAYMENT.] The intermediate school 
board upon awarding a contract for the sale of the bonds shall 
certify to the county auditor or county auditors the years and 
amounts of taxes required to be levied for the payment of the 
bonds as provided by section 475.61.  The county auditor shall 
cause taxes to be spread in each year until bonds and interest 
have been paid upon all of the assessable, taxable valuation of 
the intermediate school district.  
    Subd. 7.  [TAX EXEMPT SECURITIES.] In all other respects 
chapter 475 shall apply and the bonds shall be deemed authorized 
securities within the provisions of section 50.14, and shall be 
deemed instruments of a public governmental agency. 
    Sec. 55.  Minnesota Statutes 1990, section 136D.90, is 
amended to read: 
    136D.90 [TERM OF AGREEMENT, DISSOLUTION, BOND TAXES.] 
    Subdivision 1.  [TERM OF AGREEMENT AND TERMINATION.] The 
agreement shall state the term of its duration and may provide 
for the method of termination and distribution of assets after 
payment of all liabilities of the joint school board.  No 
termination shall affect the obligation to continue to levy 
taxes required for payment of any bonds issued as provided in 
section 136D.89 before termination.  
    Subd. 2.  [WITHDRAWAL.] (a) No school district shall be 
required by an agreement or otherwise to participate in or 
provide financial support for an intermediate school district 
for a time period in excess of one fiscal year.  Any agreement, 
part of an agreement, or other type of requirement to the 
contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before the effective date of this section.  The school 
district is liable only until the obligation or debt is 
discharged and only according to the payment schedule in effect 
on the effective date of this section, except that the payment 
schedule may be altered for the purpose of restructuring debt or 
refunding bonds outstanding on the effective date of this 
section if the annual payments of the school 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 provided by the 
intermediate district or to withdraw from the intermediate 
district, the school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the board 
of an intermediate district shall 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 school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph and to comply with 
the statutory deadlines set forth in article 9, section 33, and 
sections 125.12 and 125.17.  The intermediate board shall notify 
each participating school board of the contents of the 
resolution.  Within 120 days of receiving the resolution of the 
intermediate board, 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 withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the bonded 
indebtedness or other debt proposed by the board of the 
intermediate district. 
    (e) After the effective date of this section, a school 
district is liable according to paragraph (d) for its share of 
bonded indebtedness or other debt incurred by the intermediate 
district to the extent that the bonds or other debt are directly 
related to the services or activities in which the school 
district participates or for which the school district provides 
financial support.  The school 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 
board of the intermediate district 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 school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    Sec. 56.  Minnesota Statutes 1990, section 275.125, by 
adding a subdivision. 
    Subd. 11g.  [EXTRA CAPITAL EXPENDITURE LEVY FOR INTERACTIVE 
TELEVISION.] A school district with its central administrative 
office located within economic development region one, two, 
three, four, five, seven, eight, and ten may levy up to .5 
percent of the adjusted net tax capacity of the district for the 
construction, maintenance, and lease costs of an interactive 
television system for instructional purposes.  The approval by 
the commissioner of education and the application procedures set 
forth in subdivision 11d shall apply to the levy authority in 
this subdivision. 
    Sec. 57.  Laws 1989, chapter 329, article 6, section 53, 
subdivision 6, as amended by Laws 1990, chapter 562, article 7, 
section 13, is amended to read: 
    Subd. 6.  [TELECOMMUNICATIONS GRANT.] For grants of up to 
$20,000 each to independent school districts Nos. 356, 353, 444, 
441, 524, 564, 592, 440, 678, 676, 682, 690, 390, 593, 595, 630, 
600, 599, 447, 742, 627, 628, 561, and 454 to support 
cooperative educational technology programs: 
     $340,000    .....    1991.  
    The amount appropriated shall not cancel but shall be 
available until June 30, 1992. 
    After June 30, 1991, any remaining amount is available for 
grants of up to $20,000 each to independent school districts 
Nos. 402, 403, 404, 409, 411, 412, 413, 414, 418, 584, 601, 603, 
791, 891, and 896.  Any other district listed in this section 
that have not received a grant prior to June 30, 1991, may apply 
for a grant from any remaining amount.  The department may 
establish a deadline for grant applications. 
    Sec. 58.  [AID PAYMENTS.] 
    (a) Notwithstanding Minnesota Statutes, section 122.541, or 
any other law to the contrary, it is the intent of the 
legislature that all pupils residing in independent school 
district No. 483, Motley, who are enrolled and attending school 
in kindergarten through grade 12 in independent school district 
No. 793, Staples, be treated as nonresident pupils enrolled and 
attending school in independent school district No. 793, 
Staples, under Minnesota Statutes, section 120.062 beginning 
with the 1990-1991 school year. 
    (b) The department of education shall: 
    (1) determine the amount of state education aid calculated 
under Minnesota Statutes, section 120.062, subdivision 12, due 
district No. 793 as a result of this section; 
    (2) reduce state education aid for district No. 483 in an 
amount equal to the amount of aid due district No. 793 under 
clause (1) plus $110,198.19 for the cost to district No. 793 of 
educating 48 resident pupils of district No. 483 who attended 
kindergarten through grade 6 in district No. 793 during the 
1989-1990 school year; and 
    (3) deposit the amount of state education aid calculated 
under clauses (1) and (2) in a separate account in the state 
treasury. 
    Notwithstanding any law to the contrary, the state 
treasurer shall use the revenue deposited in the account under 
clause (3) to pay to independent school district No. 793 that 
amount of state education aid, plus a proportionate share of the 
interest earned on the account, representing partial or total 
satisfaction of any final judgment entered against independent 
school district No. 483 in the cases of independent school 
district No. 483, Motley v. Tom Nelson, in his official capacity 
as commissioner of education, file numbers C8-90-9736 and 
C6-90-2671, and independent school district No. 793 v. Ervin 
Bjergarfile number C6-90-2059, after all time for appeal from 
the judgments has expired.  The treasurer shall pay any 
remaining revenue plus proportionate interest to independent 
school district No. 483. For independent school district No. 793 
or independent school district No. 483 to receive payment, the 
attorney representing the district shall submit to the state 
treasurer a certified copy of the judgment and an affidavit 
stating that the judgment is a final judgment and the time for 
appeal from the judgment has expired. 
    Sec. 59.  [RUSHFORD-PETERSON FUND TRANSFER AUTHORIZATION.] 
    Independent school district No. 239, Rushford-Peterson, may 
make permanent transfers between any of the funds in the 
district, with the exception of the debt redemption fund, during 
the 90 days following the effective date of this section. 
    Sec. 60.  [REVENUE ADJUSTMENTS.] 
    (a) The department of education shall adjust the 1991 
payable 1992 levy for each school district by the amount of the 
change in the district's education district levy for fiscal year 
1992 according to Minnesota Statutes, section 124.2721, 
subdivision 3, resulting from the change to education district 
revenue under this article.  Notwithstanding Minnesota Statutes, 
section 121.904, the entire amount of this levy shall be 
recognized as revenue for fiscal year 1992. 
    (b) The department of education shall adjust the 1991 
payable 1992 levy for each member district of an intermediate 
district that levies according to section 39, subdivision 3, by 
the amount of the change in the school district's intermediate 
district levy for fiscal year 1992 according to section 39, 
subdivision 3, resulting from the change to intermediate 
district revenue under this article.  Notwithstanding Minnesota 
Statutes, section 121.904, the entire amount of this levy shall 
be recognized as revenue for fiscal year 1992. 
    The department of education shall adjust the 1991 payable 
1992 levy for each intermediate district that levies according 
to section 39, subdivision 6, by the amount of the change in the 
intermediate district's levy for fiscal year 1992 according to 
section 39, subdivision 2, resulting from the change to 
intermediate district revenue under this article.  
Notwithstanding Minnesota Statutes, section 121.904, the entire 
amount of this levy shall be recognized as revenue for fiscal 
year 1992. 
    Sec. 61.  [DISTRICTS WITH SECONDARY EDUCATION AGREEMENTS.] 
    A district that has had an agreement for secondary 
education according to Minnesota Statutes, section 122.535, with 
one or more districts continuously since the 1987-1988 school 
year is eligible for cooperation and combination revenue if it 
meets the requirements of Minnesota Statutes, sections 122.241 
to 122.248, not later than the first year of cooperation.  The 
department of education shall extend the deadline for submitting 
a plan in 1991. 
    Sec. 62.  [FINLAYSON AND HINCKLEY COOPERATION AND 
COMBINATION.] 
    Independent school district Nos. 570, Finlayson, and 573, 
Hinckley, may cooperate and combine under Minnesota Statutes, 
sections 122.241 to 122.248, and receive revenue under Minnesota 
Statutes, section 124.2725, even if the districts are not 
contiguous.  The districts shall comply with all other 
requirements for cooperation and combination. 
    Sec. 63.  [APPLICABILITY.] 
    The provisions relating to capital loans for cooperating 
and combining districts apply to all districts that have 
contracts for capital loans the day following final enactment of 
this act. 
    Sec. 64.  [PREK-12 AND COMMUNITY EDUCATION SERVICE DELIVERY 
SYSTEM.] 
    Subdivision 1.  [PURPOSE.] The purpose of this section is 
to design and implement a statewide delivery system for 
educational services that will reduce the number of different 
cooperative organizations and the multiple levels of 
administration that accompany those organizations. 
    Subd. 2.  [SCOPE OF THE SYSTEM.] (a) A new statewide 
delivery system must be designed and implemented by the state 
board of education by June 30, 1995, for all prekindergarten 
through grade 12 and community education services provided by 
the organizations enumerated in this paragraph: 
    (1) the Minnesota department of education; 
    (2) educational cooperative service units established under 
Minnesota Statutes, section 123.58; 
    (3) intermediate school districts established under 
Minnesota Statutes, chapter 136D; 
    (4) education districts established under Minnesota 
Statutes, section 122.91; 
    (5) regional management information centers established 
under Minnesota Statutes, section 121.935; 
    (6) secondary vocational cooperatives established under 
Minnesota Statutes, section 123.351; 
    (7) special education cooperatives established under 
Minnesota Statutes, section 120.17 or 471.59; 
    (8) technology cooperatives; and 
    (9) other joint powers agreements established under 
Minnesota Statutes, section 471.59. 
    (b) The state board shall compile a list of services and 
programs provided or administered by each type of organization 
listed in paragraph (a), clauses (1) to (9). 
    Subd. 3.  [REQUIREMENTS FOR THE SYSTEM.] The new statewide 
delivery system must provide for no more than three 
organizations for education service delivery: 
    (1) a school district, as defined in Minnesota Statutes, 
chapter 123; 
    (2) an area education organization to provide those 
programs and services most efficiently and effectively provided 
through a joint effort of school districts; and 
    (3) a state level administrative organization comprised of 
a state board of education and a state department of education 
with central and regional delivery centers. 
    Subd. 4.  [LOCAL SCHOOL DISTRICT PLANNING.] To assist the 
state board in designing a new education delivery system as 
described in subdivision 3, each school district shall develop a 
plan for the efficient and effective delivery of educational 
programs and services within the new education delivery system.  
The plan developed by each district must contain the following 
components enumerated in this subdivision: 
    (1) a list of necessary services provided by the 
organizations listed in subdivision 2; 
    (2) a description of the necessary services to be provided 
by the school district, the area education organization, and the 
central and regional delivery centers of the department of 
education described in subdivision 3; 
    (3) a specification of the optimal number of school 
districts and number of pupils that an area education 
organization and regional center of the department of education 
should serve; 
    (4) a method for determining the boundaries of area 
education organizations and regional centers of the department; 
    (5) a description of how services provided in the area 
education organizations should be funded; 
    (6) a determination of the role of the school district, the 
area education organization, and the central and regional 
centers of the department in ensuring that health and other 
social services necessary to maximize a pupil's ability to learn 
are provided to pupils; and 
    (7) any additional information requested by the state board 
of education. 
    In the development of its plan, each district shall confer 
with teachers and residents within the district, hold public 
meetings as necessary, and inform the public concerning its plan 
and any recommendations.  School districts must meet jointly to 
discuss aspects of the plan which involve multiple school 
districts.  Each district must submit the plan to the state 
board by a date specified by the board.  School districts 
cooperating under Minnesota Statutes, sections 122.241 to 
122.248, 122.535, or 122.541 must submit a joint plan. 
    Subd. 5.  [STATE BOARD OF EDUCATION TO DIRECT LOCAL SCHOOL 
DISTRICT PLANNING.] The state board of education shall direct 
local school district efforts to develop the plan described in 
subdivision 4.  To assist school districts in planning, the 
board shall provide each school district with the list of 
services and programs compiled according to subdivision 2.  The 
commissioner of education shall provide staff assistance to the 
state board as required by the board to direct this planning 
process. 
    Subd. 6.  [STATE BOARD OF EDUCATION REPORTS TO THE 
LEGISLATURE.] (a) The state board of education shall set a date 
by which school districts must submit their plan to the board.  
The board shall report to the legislature by February 1, 1992, 
on school district progress in the planning process.  The board 
shall make a final report to the legislature by January 1, 
1993.  The final report must contain recommendations for the 
design of an education service delivery system in accordance 
with this section and recommendations for legislation required 
to implement the system. 
    (b) The report must include recommendations specifying at 
which organizational level of the education delivery system 
described in subdivision 3 collective bargaining could take 
place most effectively and efficiently.  The board must consult 
with the bureau of mediation services in developing these 
recommendations. 
    (c) The final report must include recommendations of the 
legislative commission on children, youth, and their families 
established according to article 8, section 1 on coordinating 
local health, correctional, educational, job, and human services 
to improve the efficiency and effectiveness of services to 
children and families and to eliminate duplicative and 
overlapping services. 
    Sec. 65.  [EARLY RECOGNITION OF COOPERATION REVENUE.] 
    Independent school district Nos. 543, Deer Creek, and 819, 
Wadena, may recognize cooperation revenue received for fiscal 
year 1993 according to Minnesota Statutes, section 124.2725, 
subdivision 6, in fiscal year 1992. 
    Sec. 66.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [EDUCATION DISTRICT AID.] For education district 
aid according to Minnesota Statutes, section 124.2721: 
     $2,798,000     .....     1992
     $2,290,000     .....     1993
    The 1992 appropriation includes $555,000 for 1991 and 
$2,243,000 for 1992. 
    The 1993 appropriation includes $395,000 for 1992 and 
$1,895,000 for 1993. * (The language "$1,895,000 for 1993" was 
vetoed by the governor.) 
    Subd. 3.  [COOPERATION AND COMBINATION AID.] For aid for 
districts that cooperate and combine according to Minnesota 
Statutes, section 124.2725: 
     $2,327,000     .....     1992 
     $4,148,000     .....     1993 
    The 1992 appropriation includes $210,000 for 1991 and 
$2,116,000 for 1992. 
    The 1993 appropriation includes $373,000 for 1992 and 
$3,775,000 for 1993. 
    Subd. 4.  [SECONDARY VOCATIONAL COOPERATIVE AID.] For 
secondary vocational cooperative aid according to Minnesota 
Statutes, section 124.575: 
     $178,000       .....     1992
     $165,000       .....     1993
    The 1992 appropriation includes $24,000 for 1991 and 
$154,000 for 1992. 
    The 1993 appropriation includes $27,000 for 1992 and 
$138,000 for 1993. * (The language "$138,000 for 1993" was 
vetoed by the governor.) 
    Subd. 5.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] For 
educational cooperative service units:  
     $748,000     .....     1992 
     $748,000     .....     1993 
    The 1992 appropriation includes $112,000 for 1991 and 
$636,000 for 1992.  
    The 1993 appropriation includes $112,000 for 1992 and 
$636,000 for 1993.  
    Money from this appropriation may be transmitted to ECSU 
boards of directors for general operations in amounts of up to 
$68,000 per ECSU for each fiscal year.  The ECSU whose 
boundaries coincide with the boundaries of development region 11 
and the ECSU whose boundaries encompass development regions six 
and eight may receive up to $136,000 for each fiscal year. 
    Before releasing money to the ECSUs, the department of 
education shall ensure that the annual plan of each ECSU 
explicitly addresses the specific educational services that can 
be better provided by an ECSU than by a member district.  The 
annual plan must include methods to increase direct services to 
school districts in cooperation with the state department of 
education.  The department may withhold all or a part of the 
money for an ECSU if the department determines that the ECSU has 
not been providing services according to its annual plan. 
    Subd. 6.  [MANAGEMENT INFORMATION CENTERS.] For management 
information centers according to Minnesota Statutes, section 
121.935, subdivision 5: 
     $3,411,000     .....     1992
     $3,411,000     .....     1993
    $356,000 each year is for software support of the ESV 
information system. 
    Sec. 67.  [REPEALER.] 
    Subdivision 1.  [JULY 1, 1991.] Minnesota Statutes 1990, 
124C.02; 136D.27, subdivision 1; 136D.74, subdivision 2; 
136D.87, subdivision 1; and 275.125, subdivisions 8d, are 
repealed. 
    Subd. 2.  [IMMEDIATE.] Minnesota Statutes 1990, sections 
124.493, subdivision 2; 136D.28; 136D.30; 136D.89; 136D.91; and 
Laws 1990, chapter 562, article 6, section 36, are repealed. 
    The repeal of Minnesota Statutes, sections 136D.28 and 
136D.89, shall not affect any rights or duties relating to bonds 
issued according to the repealed sections. 
    Subd. 3.  [July 1, 1993.] Minnesota Statutes 1990, sections 
121.935, subdivision 5; 121.91, subdivision 7; 122.945, 
subdivision 4; 124.2721, subdivision 3a; and 124.535, 
subdivision 3a. 
    Sec. 68.  [EFFECTIVE DATE.] 
    Sections 2, 3, 6, 7, 8, 9, 12, 14, 16, and 17 are effective 
for school districts with an effective date of reorganization 
according to Minnesota Statutes, section 122.22 or 122.23 after 
June 30, 1990, and for school districts that certified a levy 
according to Minnesota Statutes, section 124.2725 after July 1, 
1989.  
    Sections 39, 47, 48, 49, 50, 51, 52, 53, 54, 55, 57, 58, 
59, and 67, subdivision 2, are effective the day following final 
enactment. 
    Sections 4, 5, 20, 22, 23, 24, 25, 26, 28, 30, 31, 32, 33, 
41, 42, 43, 44, 45, and 67, subdivision 3, are effective July 1, 
1993. 
    Sec. 69.  [RETROACTIVE EFFECT.] 
    Notwithstanding the effective date of Laws 1990, chapter 
562, article 6, section 6, a district shall pay severance pay, 
according to section 18, to a teacher who was placed on 
unrequested leave of absence as a result of an agreement for 
secondary education according to Minnesota Statutes 1990, 
section 122.535, effective on or about the close of the 
1989-1990 school year, if the teacher is otherwise eligible 
according to section 18.  The amount of the severance pay is the 
amount specified in section 18. 

                                ARTICLE 7

                          OTHER AIDS AND LEVIES
    Section 1.  [120.0111] [MISSION STATEMENT.] 
    The mission of public education in Minnesota, a system for 
lifelong learning, is to ensure individual academic achievement, 
an informed citizenry, and a highly productive work force.  This 
system focuses on the learner, promotes and values diversity, 
provides participatory decision-making, ensures accountability, 
models democratic principles, creates and sustains a climate for 
change, provides personalized learning environments, encourages 
learners to reach their maximum potential, and integrates and 
coordinates human services for learners. 
    Sec. 2.  Minnesota Statutes 1990, section 120.101, is 
amended by adding a subdivision to read: 
    Subd. 5b.  [INSTRUCTIONAL DAYS.] Every child required to 
receive instruction according to subdivision 5 shall receive 
instruction for at least the number of days per year required in 
the following schedule: 
    (1) 1995-1996, 172; 
    (2) 1996-1997, 174; 
    (3) 1997-1998, 176; 
    (4) 1998-1999, 178; 
    (5) 1999-2000, 180; 
    (6) 2000-2001, 182; 
    (7) 2001-2002, 184; 
    (8) 2002-2003, 186; 
    (9) 2003-2004, 188; and 
    (10) 2004-2005, and later school years, 190. 
    Sec. 3.  Minnesota Statutes 1990, section 121.585, 
subdivision 3, is amended to read: 
    Subd. 3.  [HOURS OF INSTRUCTION.] Pupils participating in a 
program must be able to receive the same total number of hours 
of instruction they would receive if they were not in the 
program.  If a pupil has not completed the graduation 
requirements of the district after completing the minimum number 
of secondary school hours of instruction, the district may allow 
the pupil to continue to enroll in courses needed for graduation.
    For the purposes of section 120.101, subdivision 5, the 
minimum number of hours for a year determined for the 
appropriate grade level of instruction shall constitute 170 the 
number of days of instruction required under section 120.101, 
subdivision 5b.  Hours of instruction that occur after the close 
of the instructional year in June shall be attributed to the 
following fiscal year.  
    Sec. 4.  Minnesota Statutes 1990, section 121.608, is 
amended to read: 
    121.608 [EDUCATIONAL EFFECTIVENESS PLAN.] 
    The commissioner of education shall develop a comprehensive 
statewide plan for maintaining and improving educational 
effectiveness in the schools early childhood family education 
programs through secondary education programs.  The plan shall 
include provisions for the participation of post-secondary 
teacher preparation programs and early childhood family 
education programs.  The plan shall encourage implementation of 
educational effectiveness strategies based on research findings 
in the area, develop in-service programs for school district 
staff, integrate developments in educational technology with 
classroom instruction, and develop a mechanism for establishing 
a statewide network to coordinate and disseminate information on 
research in educational effectiveness.  The commissioner may 
employ consultants and specialists to assist in the development 
of the plan, and, to the extent possible, shall utilize the 
information provided by the planning, evaluation, and reporting 
process and the statewide assessment program.  The plan shall be 
revised as necessary.  
    Sec. 5.  Minnesota Statutes 1990, section 121.609, 
subdivision 2, is amended to read: 
    Subd. 2.  [RESEARCH AND DEVELOPMENT OF IN-SERVICE PROGRAM.] 
The commissioner shall administer a research and development 
program of educational effectiveness and outcome-based education 
in-service.  The advisory task force established in subdivision 
1 may recommend modifications in the in-service program as 
necessary. 
    Sec. 6.  [121.831] [LEARNING READINESS PROGRAMS.] 
    Subdivision 1.  [ESTABLISHMENT.] A district or a group of 
districts may establish a learning readiness program for 
eligible children. 
    Subd. 2.  [CHILD ELIGIBILITY.] A child is eligible to 
participate in a learning readiness program if the child is:  
    (1) at least four years old but has not entered 
kindergarten; and 
    (2) has participated or will participate in an early 
childhood screening program according to section 123.702. 
    A child may participate in a program provided by the 
district in which the child resides or by any other district.  
    Subd. 3.  [PROGRAM ELIGIBILITY.] A learning readiness 
program shall include the following: 
    (1) a comprehensive plan to coordinate social services to 
provide for the needs of participating families and for 
collaboration with agencies or other community-based 
organizations providing services to families with young 
children; 
    (2) a development and learning component to help a child 
develop socially, intellectually, physically, and emotionally in 
a manner appropriate to the child; 
    (3) health referral services to address the medical, 
dental, mental health, and nutritional needs of the children; 
    (4) a nutrition component to meet the nutritional needs of 
the children; and 
    (5) involvement of parents in the educational, health, 
social service, and other needs of the children. 
    Subd. 4.  [PROGRAM CHARACTERISTICS.] Learning readiness 
programs may include the following: 
    (1) an individualized service plan to meet the individual 
needs of each child; 
    (2) participation by families who are representative of the 
racial, cultural, and economic diversity of the community; 
    (3) parent education to increase parents' knowledge, 
understanding, skills, and experience in child development and 
learning; 
    (4) substantial parent involvement, that may include 
developing curriculum or serving as a paid or volunteer 
educator, resource person, or other staff; 
    (5) identification of the needs of families with respect to 
the child's learning readiness; 
    (6) a plan to expand collaboration with public 
organizations, businesses, nonprofit organizations, or other 
private organizations to promote the development of a 
coordinated system of services available to all families with 
eligible children; 
    (7) coordination of treatment and follow-up services for 
all identified physical and mental health problems; 
    (8) staff and program resources, including interpreters, 
that reflect the racial and ethnic population of the children in 
the program; 
    (9) transportation for eligible children and their parents 
for whom other forms of transportation are not available or 
would constitute an excessive financial burden; and 
    (10) substantial outreach efforts to assure participation 
by families with greatest needs. 
    Subd. 5.  [PURCHASE OR CONTRACT FOR SERVICES.] Whenever 
possible, a district may contract with a public organization or 
nonprofit organization providing developmentally appropriate 
services meeting one or more of the program requirements in 
subdivision 3, clauses (1) to (4).  A district may also pay 
tuition or fees to place an eligible child in an existing 
program or establish a new program.  Services may be provided in 
a site-based program or in the home of the child or a 
combination of both.  The district may not limit participation 
to residents of the district.  
    Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] The district 
shall optimize coordination of the learning readiness program 
with existing service providers located in the community.  To 
the extent possible, resources shall follow the children based 
on the services needed, so that children have a stable 
environment and are not moved from program to program. 
    Subd. 7.  [ADVISORY COUNCIL.] Each learning readiness 
program shall have an advisory council which shall advise the 
school board in creating and administering the program and shall 
monitor the progress of the program.  The council shall ensure 
that children at greatest risk receive appropriate services.  
The school board shall: 
    (1) appoint parents of children enrolled in the program who 
represent the racial, cultural, and economic diversity of the 
district and representatives of early childhood service 
providers as representatives to an existing advisory council; or 
    (2) appoint a joint council made up of members of existing 
boards, parents of participating children, and representatives 
of early childhood service providers. 
    Subd. 8.  [PRIORITY CHILDREN.] The district shall give high 
priority to providing services to eligible children identified, 
through a means such as the early childhood screening process, 
as being developmentally disadvantaged or experiencing risk 
factors that could impede their learning readiness. 
    Subd. 9.  [CHILD RECORDS.] A record of a child's progress 
and development shall be maintained in the child's cumulative 
record while enrolled in the learning readiness program.  The 
cumulative record shall be used for the purpose of planning 
activities to suit individual needs and shall become part of the 
child's permanent record. 
    Subd. 10.  [SUPERVISION.] A program provided by a school 
board shall be supervised by a licensed early childhood teacher 
or a certified early childhood educator.  A program provided 
according to a contract between a school district and a 
nonprofit organization or another private organization shall be 
supervised according to the terms of the contract.  
    Subd. 11.  [DISTRICT STANDARDS.] The school board of the 
district shall develop standards for the learning readiness 
program. 
    Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
fee schedule based on a family's income but shall waive a fee 
for a participant unable to pay.  The fees charged must be 
designed to enable eligible children of all socioeconomic levels 
to participate in the program. 
    Subd. 13.  [ADDITIONAL REVENUE.] A district or an 
organization contracting with a district may receive money or 
in-kind services from a public or private organization. 
    Sec. 7.  Minnesota Statutes 1990, section 123.3514, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEFINITIONS.] For purposes of this section, an 
"eligible institution" means a Minnesota public post-secondary 
institution, a private, nonprofit two-year trade and technical 
school granting associate degrees, or a private, residential, 
two-year or four-year, liberal arts, degree-granting college or 
university located in Minnesota.  "Course" means a course or 
program. 
    Sec. 8.  Minnesota Statutes 1990, section 123.3514, is 
amended by adding a subdivision to read: 
    Subd. 11.  [PUPILS AT A DISTANCE FROM AN ELIGIBLE 
INSTITUTION.] A pupil who is enrolled in a secondary school that 
is located 40 miles or more from the nearest eligible 
institution may request that the resident district offer at 
least one accelerated or advanced academic course within the 
resident district in which the pupil may enroll for 
post-secondary credit.  A pupil may enroll in a course offered 
under this subdivision for either secondary or post-secondary 
credit according to subdivision 5. 
    A district must offer an accelerated or advanced academic 
course for post-secondary credit if one or more pupils requests 
such a course under this subdivision.  The district may decide 
which course to offer, how to offer the course, and whether to 
offer one or more courses.  The district must offer at least one 
such course in the next academic period and must continue to 
offer at least one accelerated or advanced academic course for 
post-secondary credit in later academic periods. 
    Sec. 9.  Minnesota Statutes 1990, section 123.951, is 
amended to read: 
    123.951 [SCHOOL SITE MANAGEMENT AGREEMENT.] 
    (a) A school board may enter into an agreement with a 
school site management team concerning the governance, 
management, or control of a any school in the district.  Upon a 
written request from a proposed school site management team, an 
initial school site management team shall be appointed by the 
school board and shall may include the school principal, 
representatives of teachers in the school, representatives of 
other employees in the school, representatives of parents of 
pupils in the school, representatives of pupils in the school, 
representatives of other members in the community, and or others 
determined appropriate by the board.  The permanent school site 
management team shall consist of at least include the school 
principal and representatives elected by each group represented 
on the initial team or other person having general control and 
supervision of the school. 
    The school board may delegate any of its powers or duties 
to the school site management team.  
    (b) School site management agreements must focus on 
creating management teams and in involving staff members in 
decision making. 
    (c) An agreement may include: 
    (1) a strategic plan for districtwide decentralization of 
resources developed through staff participation; 
    (2) a decision-making structure that allows teachers to 
identify problems and the resources needed to solve them; and 
    (3) a mechanism to allow principals, or other persons 
having general control and supervision of the school, to make 
decisions regarding how resources are best allocated and to act 
as advocates for additional resources on behalf of the entire 
school. 
    (d) Any powers or duties not specifically delegated to the 
school site management team in the school site management 
agreement shall remain with the school board. 
    (e) Approved agreements shall be filed with the 
commissioner.  If a school board denies a request to enter into 
a school site management agreement, it shall provide a copy of 
the request and the reasons for its denial to the commissioner. 
    Sec. 10.  Minnesota Statutes 1990, section 124.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSTRUCTIONAL TIME.] Every district shall 
maintain school in session or provide instruction in other 
districts for at least 175 the number of days required in 
subdivision 1b, not including summer school, or the equivalent 
in a district operating a flexible school year program.  A 
district that holds school for the required minimum number of 
days and is otherwise qualified is entitled to state aid as 
provided by law.  If school is not held for the required minimum 
number of days, state aid shall be reduced by the ratio that the 
difference between 175 the required number of days and the 
number of days school is held bears to 175 the required number 
of days, multiplied by 60 percent of the basic revenue, as 
defined in section 124A.22, subdivision 2, of the district for 
that year.  However, districts maintaining school for fewer than 
the required minimum number of days do not lose state aid (1) if 
the circumstances causing loss of school days below the required 
minimum number of days are beyond the control of the board, (2) 
if proper evidence is submitted, and (3) if a good faith attempt 
made to make up time lost due to these circumstances.  The loss 
of school days resulting from a lawful employee strike shall not 
be considered a circumstance beyond the control of the board.  
Days devoted to meetings authorized or called by the 
commissioner may not be included as part of the required minimum 
number of days of school.  For grades 1 to 12, not more than 
five days may be devoted to parent-teacher conferences, 
teachers' workshops, or other staff development opportunities as 
part of the required minimum number of days must not exceed the 
difference between the number of days required in subdivision 1b 
and the number of instructional days required in subdivision 
1b.  For kindergarten, not more than ten days may be devoted to 
parent-teacher conferences, teachers' workshops, or other staff 
development opportunities as part of the required minimum number 
of days must not exceed twice the number of days for grades 1 to 
12. 
    Sec. 11.  Minnesota Statutes 1990, section 124.19, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [REQUIRED DAYS.] Each district shall maintain 
school in session or provide instruction in other districts for 
at least the number of days required for the school years listed 
below: 
    (1) 1995-1996, 177; 
    (2) 1996-1997, 179; 
    (3) 1997-1998, 181; 
    (4) 1998-1999, 183; 
    (5) 1999-2000, 185; 
    (6) 2000-2001, 187; 
    (7) 2001-2002, 189; 
    (8) 2002-2003, 191; 
    (9) 2003-2004, 193; and 
    (10) 2004-2005, and later school years, 195. 
    Sec. 12.  Minnesota Statutes 1990, section 124.19, 
subdivision 7, is amended to read: 
    Subd. 7.  [ALTERNATIVE PROGRAMS.] (a) This subdivision 
applies to an alternative program that has been approved by the 
state board of education pursuant to Minnesota Rules, part 
3500.3500, as exempt from Minnesota Rules, part 3500.1500, 
requiring a school day to be at least six hours in duration.  
     (b) To receive general education revenue for a pupil in an 
alternative program, a school district must meet the 
requirements in this paragraph.  The program must be approved by 
the commissioner of education.  In approving a program, the 
commissioner may use the process used for approving state 
designated area learning centers under section 124C.49.  
     (c) In addition to the requirements in paragraph (b), to 
receive general education revenue for a pupil in an alternative 
program that has an independent study component, a school 
district must meet the requirements in this paragraph.  
     The school district must develop with the pupil a continual 
learning plan for the pupil.  A district must allow a minor 
pupil's parent or guardian to participate in developing the 
plan, if the parent or guardian wants to participate.  The plan 
must identify the learning experiences and expected outcomes 
needed for satisfactory credit for the year and for graduation.  
The plan must be updated each year.  
     General education revenue for a pupil in an approved 
alternative program without an independent study component must 
be prorated for a pupil participating for less than a full 
school year, or its equivalent.  
    General education revenue for a pupil in an approved 
alternative program that has an independent study component must 
be paid for each hour of teacher contact time and each hour of 
independent study time completed toward a credit necessary for 
graduation.  Average daily membership for a pupil shall equal 
the number of hours of teacher contact time and independent 
study time divided by 1,020 hours the product of the number of 
instructional days required for that year and six, but not more 
than one, except as otherwise provided in section 121.585.  
    For an alternative program having an independent study 
component, the commissioner shall require a description of the 
courses in the program, the kinds of independent study involved, 
the expected learning outcomes of the courses, and the means of 
measuring student performance against the expected outcomes. 
    Sec. 13.  [124.2615] [LEARNING READINESS AID.] 
    Subdivision 1.  [PROGRAM REVIEW AND APPROVAL.] By February 
15, 1991, for the 1991-1992 school year or by January 1 of 
subsequent school years, a district must submit to the 
commissioners of education, health, human services, and jobs and 
training:  
    (1) a description of the services to be provided; 
    (2) a plan to ensure children at greatest risk receive 
appropriate services; 
    (3) a description of procedures and methods to be used to 
coordinate public and private resources to maximize use of 
existing community resources, including school districts, health 
care facilities, government agencies, neighborhood 
organizations, and other resources knowledgeable in early 
childhood development; 
    (4) comments about the district's proposed program by the 
advisory council required by section 6, subdivision 7; and 
    (5) agreements with all participating service providers.  
    Each commissioner may review and comment on the program, 
and make recommendations to the commissioner of education, 
within 30 days of receiving the plan. 
    Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
receive learning readiness aid if the program plan as required 
by subdivision 1 has been approved by the commissioner of 
education.  For fiscal year 1992, the aid is equal to: 
    (1) $200 times the number of eligible four-year old 
children residing in the district, as determined according to 
section 124.2711, subdivision 2; plus 
    (2) $100 times the result of; 
    (3) the ratio of the number of pupils enrolled in the 
school district from families eligible for the free or reduced 
school lunch program to the total number of pupils enrolled in 
the school district; times 
    (4) the number of children in clause (1). 
    For fiscal year 1993 and thereafter, a district shall 
receive learning readiness aid equal to: 
    (1) $500 times the number of all participating eligible 
children; plus 
    (2) $200 times the number of participating eligible 
children identified according to section 6, subdivision 8. 
    Subd. 3.  [USE OF AID.] Learning readiness aid shall be 
used only to provide a learning readiness program and may be 
used to provide transportation.  Not more than five percent of 
the aid may be used for the cost of administering the program.  
Aid must be used to supplement and not supplant local, state, 
and federal funding.  Aid may not be used to purchase land or 
construct buildings, but may be used to lease or renovate 
existing buildings. 
    Subd. 4.  [SEPARATE ACCOUNTS.] The district shall deposit 
learning readiness aid in a separate account within the 
community education fund.  
    Sec. 14.  [124C.10] [CITATION.] 
    Sections 15 and 16 may be cited as the Minnesota local 
partnership act. 
    Sec. 15.  [124C.11] [PURPOSE OF THE MINNESOTA LOCAL 
PARTNERSHIP ACT.] 
    The purpose of the Minnesota local partnership act is to 
design methods to focus on the development and learning of 
children and youth in Minnesota in the 1990's and the next 
century.  Cooperation and collaboration of all services, 
including education, health, and human services for children and 
youth will be encouraged at the local and state level.  The 
program will provide incentives to design a system of 
child-focused coordinated services to enhance the learning and 
development of individual children and youth. 
    Sec. 16.  [124C.12] [MINNESOTA LOCAL PARTNERSHIP PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A program is established 
under the direction of the state board of education, with the 
cooperation of the commissioners of education, health, and human 
services.  It is expected that participants and other districts 
will become exemplary districts by the year 2000. 
    Subd. 2.  [ELIGIBILITY.] An applicant for revenue may be 
any one of the following: 
    (1) a school district located in a city of the first class 
offering a program in cooperation with other districts or by 
itself, in one or more areas in the district or in the entire 
district; 
    (2) at least two cooperating school districts located in 
the seven-county metropolitan area but not located in a city of 
the first class; 
    (3) a group of school districts that are all members of the 
same education district; 
    (4) an education district; 
    (5) a group of cooperating school districts none of which 
are members of any education district; or 
    (6) a school district. 
    Subd. 3.  [COMMUNITY EDUCATION COUNCIL.] Each revenue 
recipient must establish one or more community education 
councils.  A community education council may be composed of 
elected representatives of local governments, an education 
district board, school boards, human service providers, health 
providers, education providers, community service organizations, 
clergy, local education sites, and local businesses.  The 
community education council shall plan for the education, human 
service, and health needs of the community and collaborative 
ways to modify or build facilities for use by all community 
residents.  A council formed under this subdivision may be an 
expansion of and replace the community education advisory 
council required by section 121.88, subdivision 2. 
    Subd. 4.  [APPLICATION PROCESS.] To obtain revenue, a 
district or districts must submit an application to the state 
board in the form and manner established by the state board.  
Additional information may be required by the state board. 
    Subd. 5.  [REVENUE.] The state board may award revenue to 
up to four applicants.  The board may determine the size of the 
award based upon the application.  Recipients must be located 
throughout the state.  
    Subd. 6.  [PROCEEDS OF REVENUE.] Revenue may be used for 
initial planning expenses and for implementing child-focused 
learning and development programs. 
    Sec. 17.  Minnesota Statutes 1990, section 125.185, 
subdivision 4, is amended to read: 
    Subd. 4.  The board shall adopt rules to license public 
school teachers and interns subject to chapter 14.  The board 
shall adopt rules for examination of teachers, as defined in 
section 125.03, subdivision 5.  The rules may allow for 
completion of the examination of skills in reading, writing, and 
mathematics before entering or during a teacher education 
program.  The board shall adopt rules to approve teacher 
education programs.  The board of teaching shall provide the 
leadership and shall adopt rules by October 1, 1988, 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 teaching education program evaluation 
to assure program effectiveness based on proficiency of 
graduates in demonstrating attainment of program outcomes. 
    These rules shall encourage require teacher educators to 
work directly with elementary or secondary school teachers in 
elementary or secondary schools to obtain a periodic exposure to 
the elementary or secondary teaching experience environment.  
The board shall also grant licenses to interns and to candidates 
for initial licenses.  The board shall design and implement an 
assessment system which requires candidates for initial 
licensure and first continuing licensure to demonstrate the 
abilities necessary to perform selected, representative teaching 
tasks at appropriate levels.  The board shall receive 
recommendations from local committees as established by the 
board for the renewal of teaching licenses.  The board shall 
grant life licenses to those who qualify according to 
requirements established by the board, and suspend or revoke 
licenses pursuant to sections 125.09 and 214.10.  
Notwithstanding any law or rule to the contrary, the board shall 
not establish any expiration date for application for life 
licenses.  With regard to vocational education teachers the 
board of teaching shall adopt and maintain as its rules the 
rules of the state board of education and the state board of 
technical colleges. 
    Sec. 18.  Minnesota Statutes 1990, section 125.185, 
subdivision 4a, is amended to read: 
    Subd. 4a.  Notwithstanding section 125.05, or any other law 
to the contrary, the authority of the board of teaching and the 
state board of education to approve teacher education programs 
and to issue teacher licenses expires on June 30, 1996.  Any 
license issued by the board of teaching or the state board of 
education after the effective date of this section must expire 
by June 30, 1996. 
    The board of teaching, in cooperation with the state board 
of education and the higher education coordinating board, shall 
develop policies and corresponding goals for making teacher 
education curriculum more consistent with the purpose of state 
public education.  The revised teacher education curriculum must 
be consistent with the board of teaching rules required under 
subdivision 4 for redesigning teacher education programs to 
implement a research-based, results-oriented curriculum.  The 
revised teacher education curriculum may include a requirement 
that teacher education programs contain a one-year mentorship 
program.  The mentorship program must provide students with 
elementary or secondary teaching experience and appropriate 
professional support and evaluation from licensed classroom 
teachers, including mentor teachers.  By February 1, 1992, the 
board of teaching shall provide the education committees of the 
legislature with detailed written guidelines, strategies, and 
programs to implement the revised teacher education curriculum.  
By February 1, 1993, the board of teaching and the state board 
of education shall adopt rules under chapter 14 that are 
consistent with the guidelines, strategies, and programs 
provided to the legislature, including amending board rules 
governing the issuing, expiring, and renewing of teacher 
licenses. 
    The higher education coordinating board shall assist the 
state's teacher preparation institutions in developing teacher 
education curriculum for their students that is consistent with 
the guidelines, programs, and strategies approved by the 
legislature.  The institutions must use the revised teacher 
education curriculum to instruct their students beginning in the 
1996-1997 school year. 
    Subd. 4b.  Prior to the adoption by the board of teaching 
of any rule which must be submitted to public hearing, a 
representative of the commissioner shall appear before the board 
of teaching and at the hearing required pursuant to section 
14.14, subdivision 1, to comment on the cost and educational 
implications of that proposed rule. 
    Sec. 19.  [125.1885] [ALTERNATIVE PREPARATION LICENSING FOR 
ADMINISTRATORS.] 
    Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
that is an alternative to a graduate program in education 
administration for public school administrators to acquire an 
entrance license is established.  The program may be offered in 
any administrative field. 
    (b) To participate in the alternative preparation program, 
the candidate must: 
    (1) have a master's degree in an administrative area; 
    (2) have been offered an administrative position in a 
school district, group of districts, or an education district 
approved by the state board of education to offer an alternative 
preparation licensure program; 
    (3) have five years of experience in a field related to 
administration; and 
    (4) document successful experiences working with children 
and adults. 
    (c) An alternative preparation license is of one year 
duration and is issued by the state board of education to 
participants on admission to the alternative preparation program.
    Subd. 2.  [CHARACTERISTICS.] The alternative preparation 
program has the characteristics enumerated in this subdivision: 
    (1) staff development conducted by a resident mentorship 
team made up of administrators, teachers, and post-secondary 
faculty members; 
    (2) an instruction phase involving intensive preparation of 
a candidate for licensure before the candidate assumes 
responsibility for an administrative position; 
    (3) formal instruction and peer coaching during the school 
year; 
    (4) assessment, supervision, and evaluation of a candidate 
to determine the candidate's specific needs and to ensure 
satisfactory completion of the program; 
    (5) a research-based and results-oriented approach focused 
on skills administrators need to be effective; 
    (6) assurance of integration of education theory and 
classroom practices; and 
    (7) the shared design and delivery of staff development 
between school district personnel and post-secondary faculty. 
    Subd. 3.  [PROGRAM APPROVAL.] (a) The state board of 
education shall approve alternative preparation programs based 
on criteria adopted by the board, after receiving 
recommendations from an advisory task force appointed by the 
board. 
    (b) An alternative preparation program at a school 
district, group of schools, or an education district must be 
affiliated with a post-secondary institution that has a graduate 
program in educational administration for public school 
administrators. 
    Subd. 4.  [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 
resident mentorship team must prepare for the state board of 
education an evaluation report on the performance of the 
alternative preparation licensee during the school year and a 
positive or negative recommendation on whether the alternative 
preparation licensee shall receive a standard entrance license. 
    Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board of 
education shall issue a standard entrance license to an 
alternative preparation licensee who has successfully completed 
the school year in the alternative preparation program and who 
has received a positive recommendation from the licensee's 
mentorship team. 
    Subd. 6.  [QUALIFIED ADMINISTRATOR.] A person with a valid 
alternative preparation license is a qualified administrator 
within the meaning of section 125.04. 
    Sec. 20.  [125.189] [LICENSURE REQUIREMENTS.] 
    In addition to other requirements, a candidate for a 
license or an applicant for a continuing license to teach 
hearing-impaired students in kindergarten through grade 12 must 
demonstrate the minimum level of proficiency in American sign 
language as determined by the Quality Assurance Systems Project 
of the department of education. 
    Sec. 21.  Minnesota Statutes 1990, section 126.23, is 
amended to read: 
    126.23 [AID FOR PRIVATE ALTERNATIVE PROGRAMS.] 
    If a pupil enrolls in a nonsectarian alternative program 
operated by a private organization that has contracted with a 
school district to provide educational services for eligible 
pupils under section 126.22, subdivision 2, the resident 
district must reimburse the provider an amount equal to at least 
85 88 percent of the basic revenue of the district for each 
pupil attending the program full time.  For a pupil attending 
the program part time, basic revenue paid to the program shall 
be reduced proportionately, according to the amount of time the 
pupil attends the program, and basic 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 basic 
revenue, according to section 124A.22, subdivision 2.  If 
payment is made to a district or program for a pupil under this 
section, the department of education shall not make a payment 
for the same pupil under section 126.22, subdivision 8. 
    Sec. 22.  Minnesota Statutes 1990, section 126.661, 
subdivision 5, is amended to read: 
    Subd. 5.  [ESSENTIAL LEARNER OUTCOMES.] "Essential learner 
outcomes" means the specific basic learning experiences 
that must be are provided for all students and are used as the 
basis for assessing educational progress statewide.  
    Sec. 23.  Minnesota Statutes 1990, section 126.661, is 
amended by adding a subdivision to read: 
    Subd. 7.  [OUTCOME-BASED EDUCATION.] Outcome-based 
education is a pupil-centered, results-oriented system premised 
on the belief that all individuals can learn.  In this system: 
    (1) what a pupil is to learn is clearly identified; 
    (2) each pupil's progress is based on the pupil's 
demonstrated achievement; 
    (3) each pupil's needs are accommodated through multiple 
instructional strategies and assessment tools; and 
    (4) each pupil is provided time and assistance to realize 
her or his potential. 
    Sec. 24.  Minnesota Statutes 1990, section 126.663, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE LEARNER OUTCOMES.] The state board of 
education, with the assistance of the state curriculum advisory 
committee and the office on educational leadership, shall 
identify and adopt learner goals, essential learner outcomes, 
and integrated learner outcomes for curriculum areas, under 
section 120.101, subdivision 6, including the curriculum areas 
of communication skills, fine arts, mathematics, science, social 
studies, and health and physical education, and for career 
vocational curricula.  Learner outcomes shall include thinking 
and problem solving skills.  Learner outcomes shall consist of a 
sequence of outcomes beginning with early childhood programs 
through secondary education programs.  
    Sec. 25.  Minnesota Statutes 1990, section 126.663, 
subdivision 3, is amended to read: 
    Subd. 3.  [MODEL LEARNER OUTCOMES.] The department shall 
develop and maintain model learner outcomes in state board 
identified subject areas, including career vocational learner 
outcomes.  The department shall make learner outcomes available 
upon request by a district.  Learner outcomes shall be for 
pupils in kindergarten to early childhood through grade 12.  The 
department shall consult with each of the public post-secondary 
systems and with the higher education coordinating board in 
developing model learner outcomes appropriate for entry into 
post-secondary institutions.  Learner outcomes shall include 
thinking and problem solving skills. 
    Sec. 26.  Minnesota Statutes 1990, section 126.666, 
subdivision 2, is amended to read: 
    Subd. 2.  [CURRICULUM ADVISORY COMMITTEE.] Each school 
board shall establish a curriculum advisory committee to permit 
active community participation in all phases of the PER process. 
The district advisory committee, to the extent possible, shall 
be representative of the diversity of the community served by 
the district and the learning sites within the district, and 
include principals, teachers, parents, support staff, pupils, 
and other community residents.  The district may establish 
building teams as subcommittees of the district advisory 
committee.  The district committee shall retain responsibility 
for recommending to the school board districtwide learner 
outcomes, assessments, and program evaluations.  Learning sites 
may establish expanded curriculum, assessments, and program 
evaluations.  Whenever possible, parents and other community 
residents shall comprise at least two-thirds of the advisory 
committee.  The committee shall make recommendations to the 
board about the programs enumerated in section 124A.27, that the 
committee determines should be offered.  The recommendations 
shall be based on district and learning site needs and 
priorities. 
    Sec. 27.  Minnesota Statutes 1990, section 126.666, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [STUDENT EVALUATION.] The school board shall 
annually provide high school graduates or GED recipients who 
received a diploma or its equivalent from the school district 
with an opportunity to report to the board on the following: 
    (1) the quality of district instruction and services; 
    (2) the quality of district delivery of instruction and 
services; 
    (3) the utility of district facilities; and 
    (4) the effectiveness of district administration. 
    Sec. 28.  Minnesota Statutes 1990, section 126.666, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [PERIODIC REPORT.] Each school district at least 
once per six school years shall collect consumers' opinions, 
including the opinions of currently enrolled students, parents, 
and other district residents, regarding their level of 
satisfaction with their school experience.  The district shall 
report the results of the consumer evaluation according to the 
requirements of subdivision 4. 
    Sec. 29.  Minnesota Statutes 1990, section 126.67, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [DISTRICT ASSESSMENTS.] As part of the PER 
process, each year a district shall, in at least three grades or 
for three age levels, conduct assessments among at least a 
sample of pupils for each subject area in that year of the 
curriculum review cycle.  The district's curriculum review cycle 
shall not exceed six years.  Assessments may not be conducted in 
the same curriculum area for two consecutive years.  The 
district may use tests from the assessment item bank, the local 
assessment program developed by the department, or other tests.  
As they become available, districts shall use state developed 
measures to assure state progress toward achieving the state 
core board adopted essential learner outcomes in each subject 
area at least once during the curriculum review cycle.  Funds 
are provided for districts that choose to use the local 
assessment program or the assessment item bank. 
    Sec. 30.  Minnesota Statutes 1990, section 126.70, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY FOR REVENUE.] A school board 
may use the revenue authorized in section 124A.29 for staff time 
for peer review under section 125.12 or 125.17, or if it 
establishes a an outcome-based staff development advisory 
committee and adopts a staff development plan on outcome-based 
education according to this subdivision.  A majority of the 
advisory committee must be teachers representing various grade 
levels and subject areas.  The advisory committee must also 
include representatives of parents, and administrators.  The 
advisory committee shall develop a staff development 
plan containing proposed outcome-based education activities and 
related expenditures and shall submit it the plan to the school 
board.  If the school board approves the plan, the district may 
use the staff development revenue authorized in section 
124A.29.  Copies of approved plans must be submitted to the 
commissioner. 
    Sec. 31.  Minnesota Statutes 1990, section 126.70, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONTENTS OF THE PLAN.] The plan may include: 
    (1) procedures the district will use to analyze and 
identify teaching and curricular outcome-based education needs, 
including the need for mentor teachers; 
    (2) short- and long-term curriculum and staff development 
needs; 
    (3) integration with in-service and curricular efforts 
already in progress; 
    (4) (3) goals to be achieved and the means to be used; and 
    (5) (4) procedures for evaluating progress; and 
    (6) whether the school board intends to offer contracts 
under the excellence in teaching program.  
    Sec. 32.  Minnesota Statutes 1990, section 126.70, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [PERMITTED USES.] A school board may approve a 
plan for to accomplish any of the following purposes: 
    (1) for in-service education to increase the effectiveness 
of teachers in responding to children and young people at risk 
of not succeeding at school foster readiness for outcome-based 
education by increasing knowledge and understanding of and 
commitment to outcome-based education; 
    (2) to participate in the educational effectiveness program 
according to section 121.609 facilitate organizational changes 
by enabling a site-based team composed of pupils, parents, 
school personnel, and community members to address pupils' needs 
through outcome-based education; 
    (3) to provide in-service education for elementary and 
secondary teachers to improve the use of technology in education 
develop programs to increase pupils' educational progress by 
developing appropriate outcomes and personal learning plans and 
by encouraging pupils and their parents to assume responsibility 
for their education; 
    (4) to provide subject area in-service education 
emphasizing the academic content of curricular areas determined 
by the district to be a priority area design and develop 
outcome-based education programs containing various 
instructional opportunities that recognize pupils' individual 
needs and utilize family and community resources; 
    (5) to use experienced teachers, as mentors, to assist in 
the continued development of new teachers; evaluate the 
effectiveness of outcome-based education policies, processes, 
and products through appropriate evaluation procedures that 
include multiple criteria and indicators; and 
    (6) to increase the involvement of parents, business, and 
the community in education, including training teachers to plan 
and implement parental involvement programs that will more fully 
involve parents in their children's learning development; 
    (7) for experimental delivery systems; 
    (8) for in-service education to increase the effectiveness 
of principals and administrators; 
    (9) for in-service education or curriculum development for 
programs for gifted and talented pupils; 
    (10) for in-service education or curriculum development for 
cooperative efforts to increase curriculum offerings; 
    (11) for improving curriculum, according to the needs 
identified under the planning, evaluation, and reporting process 
set forth in section 126.666; 
    (12) for in-service education and curriculum development 
designed to promote sex equity in all aspects of education, with 
emphasis on curricular areas such as mathematics, science, and 
technology programs; 
    (13) for in-service education or curriculum modification 
for handicapped pupils and low-achieving pupils; 
    (14) for short-term contracts as described in section 
126.72; or 
    (15) to employ teachers for an extended year to perform 
duties directly related to improving curriculum or teaching 
skills provide staff time for peer review of probationary, 
continuing contract, and nonprobationary teachers. 
    Sec. 33.  Minnesota Statutes 1990, section 260.015, 
subdivision 19, is amended to read: 
    Subd. 19.  [HABITUAL TRUANT.] "Habitual truant" means a 
child under the age of 16 years through the 1999-2000 school 
year and under the age of 18 beginning with the 2000-2001 school 
year who is absent from attendance at school without lawful 
excuse for seven school days if the child is in elementary 
school or for one or more class periods on seven school days if 
the child is in middle school, junior high school, or high 
school.  
    Sec. 34.  [LEARNING READINESS PROGRAM REPORT.] 
    Each school district receiving learning readiness aid shall 
report to the commissioner of education by January 1 of 1992 and 
1993 about the types of services provided through the program, 
progress made by participating children, the number of 
participating children receiving services without charge, the 
number of participating children paying reduced fees, the number 
of participating children paying the full fee, total 
expenditures for services, and the amount of money and in-kind 
services received from public or private organizations.  A 
district shall report actual information to the extent the 
information is available, and other information as required in 
section 13, subdivision 1. 
    Sec. 35.  [STATE BOARD RECOMMENDATIONS.] 
    By February 1, 1993, the state board of education shall 
present to the education committees of the legislature 
recommendations for integrating education funding and the 
achievement of state and local outcomes. 
    Sec. 36.  [RULE REVIEW.] 
    Subdivision 1.  [REPORT.] The state board of education 
shall review each board rule to determine whether it is 
necessary, reasonable, and cost-effective and whether it is 
consistent with legislative policy adopted since the rule was 
enacted.  The board shall report to the education committees of 
the legislature by January 1, 1993, on any amendment required to 
make a rule necessary, reasonable, or cost-effective or 
consistent with legislative policy and on any rule required to 
be repealed. 
    Subd. 2.  [STAFF.] The commissioner of education shall 
provide staff assistance to the state board of education, at the 
request of the board, to complete the report required under 
subdivision 1. 
    Sec. 37.  [OUTCOME-BASED EDUCATION PROGRAM CONTRACTS.] 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, outcome-based education has the meaning given it in 
Minnesota Statutes, section 126.661, subdivision 7. 
    Subd. 2.  [ESTABLISHMENT.] A process for contracting 
between a public school, school district, or group of districts 
and the department of education to develop outcome-based 
education programs is established.  The purpose of the contract 
is to enable public schools, school districts, and groups of 
districts to develop outcome-based programs that improve pupils' 
educational achievement through instructional opportunities that 
recognize pupils' individual needs. 
    Subd. 3.  [ELIGIBILITY.] A school, school district, or 
group of districts seeking to contract with the department to 
develop an outcome-based education program must agree to serve 
as a demonstration site during the term of the contract and for 
a mimimum of one school year after the expiration date of the 
contract. 
    Subd. 4.  [CONTRACTING PROCESS.] The commissioner of 
education shall establish an outcome-based education contract 
committee of qualified department staff to determine the areas 
to be included in the outcome-based education program contracts 
and other contract terms and conditions.  The committee, after 
consulting with the commissioner and the state board of 
education, shall determine the form and manner by which a 
school, a school district, or a group of districts may seek a 
contract.  The committee shall disseminate information about the 
contracts and the contracting process. 
    Subd. 5.  [CONTRACT APPROVAL.] By October 1 of the current 
school year, the committee shall award outcome-based education 
program contracts to qualified schools, school districts, or 
groups of districts.  In awarding contracts, the committee shall 
consider the geographical location of the school, school 
district, or group of districts seeking the contract, whether 
the outcome-based education program would be available to 
elementary, middle, or secondary pupils and the areas to be 
included in the outcome-based education program.  For programs 
addressing specific subject areas, the outcome-based education 
contract committee shall consult with curriculum experts in 
those subject areas to evaluate those program proposals. 
    Subd. 6.  [CONTRACT FUNDS.] Any unexpended contract funds 
awarded to a school, school district, or group of districts in 
one fiscal year do not cancel but are available in the next 
fiscal year. 
    Subd. 7.  [EVALUATION.] The commissioner shall provide for 
an evaluation of the demonstration site programs and shall 
disseminate throughout the state information on the components 
of successful outcome-based education programs. 
    Sec. 38.  [AID TRANSFER.] 
    A district that has established a designated account for 
early childhood programs in fiscal year 1991 for revenue from a 
referendum levy authorized in November 1990 under Minnesota 
Statutes, section 124A.03, may transfer learning readiness aid 
from the community service fund to the general fund. 
    Sec. 39.  [BOARD OF TEACHING APPROPRIATION.] 
    Subdivision 1.  [BOARD OF TEACHING.] The sums indicated in 
this section are appropriated from the general fund to the board 
of teaching in the fiscal years indicated. 
    Subd. 2.  [TEACHER EDUCATION IMPROVEMENT.] For board of 
teaching responsibilities specified in Minnesota Statutes, 
section 125.185, subdivisions 4 and 4a: 
     $165,000     .....     1992
    Any balance in the first year does not cancel but is 
available in the second year.  This appropriation is only 
available if teacher license fees are increased to raise an 
equivalent amount.  
    Sec. 40.  [HECB APPROPRIATION.] 
    Subdivision 1.  [HIGHER EDUCATION COORDINATING BOARD.] The 
sums indicated in this section are appropriated from the general 
fund to the higher education coordinating board for the fiscal 
years designated. 
    Subd. 2.  [SUMMER PROGRAM SCHOLARSHIPS.] To the higher 
education coordinating board, for scholarship awards for summer 
programs according to Minnesota Statutes, section 126.56:  
     $214,000    .....    1992 
     $214,000    .....    1993 
    Of this appropriation, any amount required by the higher 
education coordinating board may be used for the board's costs 
of administering the program.  
    Sec. 41.  [DEPARTMENT OF EDUCATION APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [AREA LEARNING CENTER GRANTS.] For grants to area 
learning centers:  
     $150,000    .....    1992 
     $150,000    .....    1993 
    Subd. 3.  [ARTS PLANNING GRANTS.] For grants for arts 
planning according to Minnesota Statutes, section 124C.08:  
     $38,000    .....    1992 
     $38,000    .....    1993 
    Any balance in the first year does not cancel but is 
available in the second year. 
    Subd. 4.  [OUTCOME-BASED EDUCATION PROGRAM CONTRACTS.] For 
entering into contracts for outcome-based education programs 
according to section 37: 
     $675,000     .....     1992
     $675,000     .....     1993
    $55,000 each year is for evaluation and administration of 
the program. 
    Sec. 42.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [LEARNING READINESS PROGRAM REVENUE.] For revenue 
for learning readiness programs: 
     $ 8,000,000     .....     1992
     $20,000,000*    .....     1993
    * (The appropriation of $20,000,000 was vetoed by the 
governor.) 
    Any excess appropriations from fiscal year 1992 shall be 
allocated among school districts providing learning readiness 
programs according to the proportion of aid determined under 
section 13, subdivision 2, for a school district to the amount 
of aid determined under section 13, subdivision 2, for all 
school districts providing learning readiness programs.  The 
total amount of aid paid to a school district shall not exceed 
$2,000 per participating eligible child. 
    The 1992 appropriation includes $8,000,000 for 1992.  
    The 1993 appropriation includes $3,000,000 for 1992 and 
$17,000,000 for 1993. * (The preceding paragraph beginning "The 
1993" was vetoed by the governor.) 
    Any unexpended balance in the first year does not cancel 
but is available in the second year. 
    Subd. 3.  [MINNESOTA LOCAL PARTNERSHIP REVENUE.] For 
revenue for the Minnesota local partnership act: 
     $100,000     .....     1992*
    * (The appropriation of $100,000 in subdivision 3 was 
vetoed by the governor.) 
    Up to $5,000 may be used for the expenses of a task force 
to advise the state board about the program and to make 
recommendations to the state board about revenue applications.  
    The amount appropriated is available until June 30, 1992. 
    Sec. 43.  [REPEALER.] 
    (a) Minnesota Statutes 1990, sections 120.011 and 121.111 
are repealed. 
    (b) Minnesota Statutes 1990, section 124C.41, subdivisions 
6 and 7, are repealed effective July 1, 1991.  In the next 
edition of Minnesota Statutes, the revisor of statutes shall 
change the first grade and section headnotes to read "Teacher 
Centers" to reflect the changes made by the repealer in this 
paragraph. 
    Sec. 44.  [EFFECTIVE DATE.] 
    Section 8 is effective July 1, 1993.  Section 20 is 
effective August 1, 1994. 

                               ARTICLE 8 

                        OTHER EDUCATION PROGRAMS 
    Section 1.  [3.873] [LEGISLATIVE COMMISSION ON CHILDREN, 
YOUTH, AND THEIR FAMILIES.] 
    Subdivision 1.  [ESTABLISHMENT.] A legislative commission 
on children, youth, and their families is established to study 
state policy and legislation affecting children and youth and 
their families.  The commission shall make recommendations about 
how to ensure and promote the present and future well-being of 
Minnesota children and youth and their families, including 
methods for helping state and local agencies to work together.  
    Subd. 2.  [MEMBERSHIP AND TERMS.] The commission consists 
of 16 members that reflect a proportionate representation from 
each party.  Eight members from the house shall be appointed by 
the speaker of the house and eight members from the senate shall 
be appointed by the subcommittee on committees of the committee 
on rules and administration.  The membership must include 
members of the following committees in the house and the 
senate:  health and human services, governmental operations, 
education, judiciary, and appropriations or finance.  The 
commission must have representatives from both rural and 
metropolitan areas.  The terms of the members are for two years 
beginning on January 1 of each odd-numbered year.  
    Subd. 3.  [OFFICERS.] The commission shall elect a chair 
and vice-chair from among its members.  The chair must alternate 
biennially between a member of the house and a member of the 
senate.  When the chair is from one body, the vice-chair must be 
from the other body.  
    Subd. 4.  [STAFF.] The commission may use existing 
legislative staff to provide legal counsel, research, fiscal, 
secretarial, and clerical assistance.  
    Subd. 5.  [INFORMATION COLLECTION; INTERGOVERNMENTAL 
COORDINATION.] (a) The commission may conduct public hearings 
and otherwise collect data and information necessary to its 
purposes. 
    (b) The commission may request information or assistance 
from any state agency or officer to assist the commission in 
performing its duties.  The agency or officer shall promptly 
furnish any information or assistance requested.  
     (c) Before implementing new or substantially revised 
programs relating to the subjects being studied by the 
commission under subdivision 7, the commissioner responsible for 
the program shall prepare an implementation plan for the program 
and shall submit the plan to the commission for review and 
comment.  The commission may advise and make recommendations to 
the commissioner on the implementation of the program and may 
request the changes or additions in the plan it deems 
appropriate. 
    (d) By July 1, 1991, the responsible state agency 
commissioners, including the commissioners of education, health, 
human services, jobs and training, and corrections, shall 
prepare data for presentation to the commission on the state 
programs to be examined by the commission under subdivision 7, 
paragraph (a). 
    (e) To facilitate coordination between executive and 
legislative authorities, the governor shall appoint a person to 
act as liaison between the commission and the governor. 
    Subd. 6.  [LEGISLATIVE REPORTS AND RECOMMENDATIONS.] The 
commission shall make recommendations to the legislature to 
implement combining education, and health and human services and 
related support services provided to children and their families 
by the departments of education, human services, health and 
other state agencies into a single state department of children 
and families to provide more effective and efficient services.  
The commission also shall make recommendations to the 
legislature or committees, as it deems appropriate to assist the 
legislature in formulating legislation.  To facilitate 
coordination between executive and legislative authorities, the 
commission shall review and evaluate the plans and proposals of 
the governor and state agencies on matters within the 
commission's jurisdiction and shall provide the legislature with 
its analysis and recommendations.  Any analysis and 
recommendations must integrate recommendations for the design of 
an education service delivery system under article 6, section 
31.  The commission shall report its final recommendations under 
this subdivision and subdivision 7, paragraph (a), by January 1, 
1993.  The commission shall submit a progress report by January 
1, 1992. 
    Subd. 7.  [PRIORITIES.] The commission shall give priority 
to studying and reporting to the legislature on the matters 
described in this subdivision. 
    (a) The commission must study and report on methods of 
improving legislative consideration of children and family 
issues and coordinating state agency programs relating to 
children and families, including the desirability, feasibility, 
and effects of creating a new state department of children's 
services, or children and family services, in which would be 
consolidated the responsibility for administering state programs 
relating to children and families. 
    (b) The commission must study and report on methods of 
consolidating or coordinating local health, correctional, 
educational, job, and human services, to improve the efficiency 
and effectiveness of services to children and families and to 
eliminate duplicative and overlapping services.  The commission 
shall evaluate and make recommendations on programs and projects 
in this and other states that encourage or require local 
jurisdictions to consolidate the delivery of services in schools 
or other community centers to reduce the cost and improve the 
coverage and accessibility of services. 
    (c) The commission must study and report on methods of 
improving and coordinating educational, social, and health care 
services that assist children and families during the early 
childhood years.  The commission's study must include an 
evaluation of the following:  early childhood health and 
development screening services, headstart, child care, and early 
childhood family education. 
    (d) The commission must study and report on methods of 
improving and coordinating the practices of judicial, 
correctional, and social service agencies in placing juvenile 
offenders and children who are in need of protective services or 
treatment. 
    Subd. 8.  [EXPENSES AND REIMBURSEMENTS.] The per diem and 
mileage costs of the members of the commission must be 
reimbursed as provided in section 3.101.  The health and human 
services, governmental operations, education, judiciary, and 
appropriations or finance committees in the house and the senate 
shall share equally the responsibility to pay commission 
members' per diem and mileage costs from their committee budgets.
    Subd. 9.  [EXPIRATION.] The commission expires on June 30, 
1994. 
    Sec. 2.  Minnesota Statutes 1990, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 7.  [UNEMPLOYMENT RESERVE BALANCE.] The reserved fund 
balance for unemployment insurance as of June 30 of each year 
may not exceed $10 times the number of pupil units for that 
year.  The department shall reduce the levy certified by the 
district, according to section 275.125, subdivision 4, the 
following year for obligations under section 268.06, subdivision 
25, by the amount of the excess. 
    Sec. 3.  [123.709] [CHEMICAL ABUSE PREVENTION PROGRAM.] 
    Subdivision 1.  [DEFINITION.] "Targeted children and young 
people" means those individuals, whether or not enrolled in 
school, who are under 21 years of age and who are susceptible to 
abusing chemicals.  Included among these individuals are those 
who:  
    (1) are the children of drug or alcohol abusers; 
    (2) are at risk of becoming drug or alcohol abusers; 
    (3) are school dropouts; 
    (4) are failing in school; 
    (5) have become pregnant; 
    (6) are economically disadvantaged; 
    (7) are victims of physical, sexual, or psychological 
abuse; 
    (8) have committed a violent or delinquent act; 
    (9) have experienced mental health problems; 
    (10) have attempted suicide; 
    (11) have experienced long-term physical pain due to 
injury; 
    (12) have experienced homelessness; 
    (13) have been expelled or excluded from school under 
sections 127.26 to 127.39; or 
    (14) have been adjudicated children in need of protection 
or services. 
    Subd. 2.  [PURPOSE.] Schools, school districts, groups of 
school districts, community groups, or other regional public or 
nonprofit entities may contract with the commissioner of 
education to provide programs to prevent chemical abuse and meet 
the developmental needs of targeted children and young people, 
and to help these individuals overcome barriers to learning. 
    Subd. 3.  [OBJECTIVES.] The commissioner of education may 
enter into contracts to: 
    (1) train individuals to work with targeted children and 
young people; 
    (2) expand the ability of the community to meet the needs 
of targeted children and young people and their families by 
locating appropriated services and resources at or near a school 
site; and 
    (3) involve the parents and other family members of these 
targeted children and young people more fully in the education 
process. 
    Subd. 4.  [CONTRACT TERMS.] The commissioner may enter into 
contracts for programs that the commissioner determines are 
meritorious and appropriate and for which revenue is available.  
All contractors must offer vocational training or employment 
services, health screening referrals, and mental health or 
family counseling.  A contractor receiving funds in one fiscal 
year may carry forward any unencumbered funds into the next 
fiscal year. 
    Subd. 5.  [COMMISSIONER'S ROLE.] (a) The commissioner shall 
develop criteria, which the commissioner shall periodically 
evaluate, for entering into program contracts. 
    (b) The criteria must include: 
    (1) targeted families confronting social or economic 
adversity; 
    (2) offering programs to targeted children and young people 
during and after school hours and during the summer; 
    (3) integrating the cultural and linguistic diversity of 
the community into the school environment; 
    (4) involving targeted children and young people and their 
families in planning and implementing programs; 
    (5) facilitating meaningful collaboration among the service 
providers located at or near a school site; 
    (6) locating programs throughout the state; and 
    (7) serving diverse populations of targeted children and 
young people, with a focus on children through grade 3. 
    Subd. 6.  [EVALUATION.] The commissioner shall evaluate 
contractors' programs and shall disseminate successful program 
components statewide. 
    Sec. 4.  [124.278] [MINORITY TEACHER INCENTIVES.] 
    Subdivision 1.  [ELIGIBLE DISTRICT.] A district is eligible 
for reimbursement under this section if the district has: 
    (1) a minority enrollment of more than ten percent; or 
    (2) a desegregation plan approved by the state board of 
education. 
    Subd. 2.  [ELIGIBLE EMPLOYEE.] The following employees are 
eligible for reimbursement under this section: 
    (1) a teacher who is a member of a minority group and who 
has not taught in a Minnesota school district during the school 
year before the year the teacher is employed according to this 
section; and 
    (2) an aide or an education assistant who is a member of a 
minority group and who has not been employed as an aide or an 
education assistant in a Minnesota school district during the 
school year before the year the aide or education assistant is 
employed according to this section. 
    Subd. 3.  [REIMBURSEMENT.] Reimbursement shall equal 
one-half of the salary and fringe benefits, but not more than 
$20,000.  The district shall receive reimbursement for each year 
a minority teacher, aide, or education assistant is employed.  
The department of education shall establish application or other 
procedures for districts to obtain the reimbursement.  The 
department shall not prorate the reimbursement. 
    Subd. 4.  [MINORITY GROUP.] For the purposes of this 
section, a person is a member of a minority group if the person 
is African American, American Indian, Asian Pacific American, or 
an American of Mexican, Puerto Rican, or Spanish origin or 
ancestry. 
    Sec. 5.  Minnesota Statutes 1990, section 124.646, is 
amended to read: 
    Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
year, school districts participating in the national school 
lunch program shall be paid by the state in the amount of 7.5 
6.5 cents for each full paid, reduced, and free student lunch 
served to students in the district.  
    Subd. 2.  School districts shall not be paid by the state 
for free or reduced price type "A" lunches served by the 
district. 
    Subd. 3.  School districts shall apply to the state 
department of education for this payment on forms provided by 
the department. 
    Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
described in this subdivision must be recorded as provided in 
this subdivision. 
    (b) In each school district, the expenses for a school food 
service program for pupils must be attributed to a school food 
service fund.  Under a food service program, the school food 
service may prepare or serve milk, meals, or snacks in 
connection with school or community service activities. 
    (c) Revenues and expenditures for food service activities 
must be recorded in the food service fund.  The costs of 
processing applications, accounting for meals, preparing and 
serving food, providing kitchen custodial services, and other 
expenses involving the preparing of meals or the kitchen section 
of the lunchroom may be charged to the food service fund or to 
the general fund of the district.  The costs of lunchroom 
supervision, lunchroom custodial services, lunchroom utilities, 
and other administrative costs of the food service program, 
including the costs attributable to the superintendent and the 
financial manager must be charged to the general fund. 
    (d) Capital expenditures for the purchase of food service 
equipment must be made from the capital fund and not the food 
service fund, unless two conditions apply: 
    (1) the unreserved balance in the food service fund at the 
end of the last fiscal year is greater than the cost of the 
equipment to be purchased; and 
    (2) the department of education has approved the purchase 
of the equipment. 
    (e) If the two conditions set out in paragraph (d) apply, 
the equipment may be purchased from the food service fund. 
    (f) If a deficit in the food service fund exists at the end 
of a fiscal year, and the deficit is not eliminated by revenues 
from food service operations in the next fiscal year, then the 
deficit must be eliminated by a permanent fund transfer from the 
general fund at the end of that second fiscal year. 
    Sec. 6.  Minnesota Statutes 1990, section 124.6472, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BREAKFAST REQUIRED.] A school district 
shall offer a school breakfast program in every school building 
in which: 
    (1) at least 40 percent of the school lunches served during 
the 1989-1990 second preceding school year were served free or 
at a reduced price; or 
    (2) at least 15 percent of the children in the school would 
take part in the program, as indicated by a survey of the 
parents in the school. 
    Sec. 7.  Minnesota Statutes 1990, section 125.231, is 
amended to read: 
    125.231 [TEACHER ASSISTANCE THROUGH MENTORSHIP PROGRAM.] 
    Subdivision 1.  [TEACHER MENTORING PROGRAM.] School 
districts are encouraged to participate in a competitive grant 
program that explores the potential of various teacher mentoring 
programs for teachers new to the profession or district, or for 
teachers with special needs.  
    Subd. 2.  [TEACHER MENTORING TASK FORCE.] The commissioner 
shall appoint and work with a teacher mentoring task force 
including representatives of the two teachers unions, the two 
principals organizations, school boards association, 
administrators association, board of teaching, parent teacher 
association, post-secondary institutions, foundations, and the 
private sector.  Representation on the task force by minority 
populations of color shall reflect the proportion of minorities 
people of color in the public schools. 
    The task force shall: 
    (1)  make recommendations for a system of incentives at the 
state and local level to assure that highly capable individuals 
are attracted to and retained in the teaching profession; 
    (2) determine ways in which teachers can be empowered 
through expanding to new and more professional roles; and 
    (3) develop the application forms, criteria, and procedures 
for the mentorship program; 
    (2) select sites to receive grant funding; and 
    (3) provide ongoing support and direction for program 
implementation.  
    Subd. 3.  [APPLICATIONS.] The commissioner of education 
shall make application forms available by October 1, 1987 to 
sites interested in developing or expanding a mentorship 
program.  By December 1, 1987, A school district, a group of 
school districts, or a coalition of districts, teachers and 
teacher education institutions may apply for a teacher 
mentorship program grant.  By January 1, 1988, The commissioner, 
in consultation with the teacher mentoring task force, shall 
approve or disapprove the applications.  To the extent possible, 
the approved applications must reflect a variety of mentorship 
program models effective mentoring components, include a variety 
of coalitions and be geographically distributed throughout the 
state.  The commissioner of education shall encourage the 
selected sites to consider the use of the assessment procedures 
developed by the board of teaching.  
    Subd. 4.  [CRITERIA FOR SELECTION.] At a minimum, 
applicants must express commitment to: 
    (1) allow staff participation; 
    (2) assess skills of both beginning and mentor teachers; 
    (3) provide appropriate in-service to needs identified in 
the assessment; 
    (4) provide leadership to the effort; 
    (5) cooperate with higher education institutions; 
    (6) provide facilities and other resources; and 
    (7) share findings, materials, and techniques with other 
school districts. 
    Subd. 5.  [ADDITIONAL FUNDING.] Applicants are required to 
seek additional funding and assistance from sources such as 
school districts, post-secondary institutions, foundations, and 
the private sector. 
    Subd. 6.  [REPORT TO THE LEGISLATURE.] By January 1, 1991, 
the commissioner of education shall report to the legislature on 
how the teacher mentoring task force recommendations for a 
system of incentives are being implemented at the state and 
local level to assure that highly capable individuals are 
attracted to and retained in the teaching profession and shall 
recommend ways to expand and enhance the responsibilities of 
teachers.  
    By January 1 of 1990 and 1991, the commissioner of 
education shall report to the legislature on the design, 
development, implementation, and evaluation of the mentorship 
program.  
    Subd. 7.  [PROGRAM IMPLEMENTATION.] New and expanding 
mentorship sites that are funded to design, develop, implement, 
and evaluate their program must participate in activities that 
support program development and implementation.  The department 
of education must provide resources and assistance to support 
new sites in their program efforts.  These activities and 
services may include, but are not limited to:  planning, 
planning guides, media, training, conferences, institutes, and 
regional and statewide networking meetings.  Nonfunded schools 
or districts interested in getting started may participate in 
some activities and services.  Fees may be charged for meals, 
materials, and the like. 
    Sec. 8.  Minnesota Statutes 1990, section 126.113, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT.] The Minnesota education in 
agriculture leadership council is established to promote 
education about agriculture. 
    Sec. 9.  Minnesota Statutes 1990, section 126.113, 
subdivision 2, is amended to read: 
    Subd. 2.  [GOVERNANCE.] The council must be appointed by 
the governor and has 12 members.  One member must be appointed 
from each congressional district and the remaining members must 
be appointed at large.  Council terms and removal of members are 
as provided in section 15.0575.  Council members may receive 
reimbursement for expenses only if sources other than a direct 
legislative appropriation are available to pay the costs of 
members' reimbursement.  The council is governed by an executive 
board of directors.  The council may organize and appoint 
committees as it considers necessary. 
    Sec. 10.  Minnesota Statutes 1990, section 141.25, 
subdivision 8, is amended to read: 
    Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
initial license under sections 141.21 to 141.36 shall be 
accompanied by $510 $560 a nonrefundable application fee. 
    (b) All licenses shall expire on December 31 of each year.  
Each renewal application shall be accompanied by a nonrefundable 
renewal fee of $380 $430.  
    (c) Application for renewal of license shall be made on or 
before October 1 of each calendar year.  Each renewal form shall 
be supplied by the commissioner.  It shall not be necessary for 
an applicant to supply all information required in the initial 
application at the time of renewal unless requested by the 
commissioner.  
    Sec. 11.  Minnesota Statutes 1990, section 141.26, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEE.] The initial and renewal application for 
each permit shall be accompanied by a nonrefundable fee of 
$190 $210. 
    Sec. 12.  Minnesota Statutes 1990, section 171.29, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) A person whose drivers license has been 
revoked as provided in subdivision 1, except under section 
169.121 or 169.123, shall pay a $30 fee before the person's 
drivers license is reinstated. 
      (b) A person whose drivers license has been revoked as 
provided in subdivision 1 under section 169.121 or 169.123 shall 
pay a $200 fee before the person's drivers license is reinstated 
to be credited as follows: 
      (1) 25 percent shall be credited to the trunk highway fund; 
      (2) 50 percent shall be credited to a separate account to 
be known as the county probation reimbursement account.  Money 
in this account may be appropriated to the commissioner of 
corrections for the costs that counties assume under Laws 1959, 
chapter 698, of providing probation and parole services to wards 
of the commissioner of corrections.  This money is provided in 
addition to any money which the counties currently receive under 
section 260.311, subdivision 5; 
      (3) ten percent shall be credited to a separate account to 
be known as the bureau of criminal apprehension account.  Money 
in this account may be appropriated to the commissioner of 
public safety and shall be divided as follows:  eight percent 
for laboratory costs; two percent for carrying out the 
provisions of section 299C.065; 
    (4) 15 percent shall be credited to a separate account to 
be known as the alcohol-impaired driver education account.  
Money in the account may be appropriated to the commissioner of 
education for grants to develop alcohol-impaired driver 
education and chemical abuse prevention programs in elementary 
and, secondary, and post-secondary schools.  The state board of 
education shall establish guidelines for the distribution of the 
grants.  Each year the commissioner may use $100,000 to 
administer the grant program and other traffic safety education 
programs.  
     Sec. 13.  Minnesota Statutes 1990, section 475.61, 
subdivision 3, is amended to read: 
    Subd. 3.  [IRREVOCABILITY.] Tax levies so made and filed 
shall be irrevocable, except as provided in this subdivision. 
    In each year when there is on hand any excess amount in the 
debt redemption fund of a school district at the time the 
district makes its property tax levies, the amount of the excess 
shall be certified by the school board to the county auditor and 
the auditor shall reduce the tax levy otherwise to be included 
in the rolls next prepared by the amount certified, unless.  The 
commissioner shall prescribe the form and calculation to be used 
in computing the excess amount.  The school board determines 
that may, with the approval of the commissioner, retain the 
excess amount if it is necessary to ensure the prompt and full 
payment of the obligations and any call premium on the 
obligations, or will be used for redemption of the obligations 
in accordance with their terms.  An amount shall be presumed to 
be excess for a school district in the amount that it, together 
with the levy required by subdivision 1, will exceed 106 percent 
of the amount needed to meet when due the principal and interest 
payments on the obligations due before the second following July 
1.  This subdivision shall not limit a school board's authority 
to The school board may, with the approval of the commissioner, 
specify a tax levy in a higher amount if necessary because of 
anticipated tax delinquency or for cash flow needs to meet the 
required payments from the debt redemption fund.  
    If the governing body, including the governing body of a 
school district, in any year makes an irrevocable appropriation 
to the debt service fund of money actually on hand or if there 
is on hand any excess amount in the debt service fund, the 
recording officer may certify to the county auditory the fact 
and amount thereof and the auditor shall reduce by the amount so 
certified the amount otherwise to be included in the rolls next 
thereafter prepared. 
    Sec. 14.  [NONOPERATING FUND TRANSFERS.] 
    On June 30, 1992, a school district may permanently 
transfer money from the capital expenditure fund and from the 
debt redemption fund, to the extent the transferred money is not 
needed for principal and interest payments on bonds outstanding 
at the time of transfer, to the transportation fund, capital 
expenditure fund, or the debt redemption fund.  No levies shall 
be reduced as a result of a transfer.  Each district 
transferring money according to this section shall report to the 
commissioner of education a report of each transfer.  The 
commissioner of education shall report to the chairs of the 
education funding divisions of the house of representatives and 
the senate the aggregate transfers, by fund, made by school 
districts. 
    Sec. 15.  [FUND TRANSFER.] 
    Notwithstanding Minnesota Statutes, section 121.912, 
subdivision 1, in fiscal year 1992, the reserved fund balance 
for unemployment insurance that exceeds $10 times the number of 
pupil units in the district during the 1990-1991 school year as 
of June 30, 1991, remaining, after the levy for unemployment 
insurance is reduced by the department of education, shall be 
transferred to the capital expenditure fund or the 
transportation fund. 
    Sec. 16.  [TASK FORCE ON EDUCATION AND EMPLOYMENT 
TRANSITIONS.] 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section, "education and employment transitions" means those 
processes and structures that provide an individual with 
awareness of employment opportunities, demonstrate the 
relationship between education and employment and the 
applicability of education to employment, identify an 
individual's employment interests, and assist the individual to 
make transitions between education and employment. 
    Subd. 2.  [TASK FORCE ON EDUCATION AND EMPLOYMENT 
TRANSITIONS.] The state council on vocational technical 
education shall establish a task force on education and 
employment transitions. 
    Subd. 3.  [PLAN.] The task force shall develop a statewide 
plan for implementing programs for education and employment 
transitions.  The plan shall identify: 
    (1) existing public and private efforts in Minnesota that 
assist students to make successful transitions between education 
and employment; 
    (2) programs in other states and countries that are 
successfully preparing individuals for employment; 
    (3) how to overcome barriers that may prevent public and 
private collaboration in planning and implementing programs for 
education and employment transitions; 
    (4) the role of public and private groups in education and 
employment transitions; 
    (5) new processes and structures to implement statewide 
programs for education and employment transitions; 
    (6) how to integrate programs for education and employment 
transitions and outcome-based education initiatives; 
    (7) how to implement programs for education and employment 
transitions in Minnesota; and 
     (8) models for administrative and legislative action. 
    Subd. 4.  [MEMBERSHIP.] The task force shall include: 
    (1) the members of the higher education advisory council 
under Minnesota Statutes, section 136A.02, subdivision 6, or 
members' designees; 
    (2) the executive director of the higher education 
coordinating board or the executive director's designee; 
    (3) the commissioner of jobs and training or the 
commissioner's designee; 
    (4) the commissioner of trade and economic development or 
the commissioner's designee; 
    (5) the commissioner of human services or the 
commissioner's designee; 
    (6) the commissioner of labor and industry or the 
commissioner's designee; 
    (7) up to ten members who represent the interests of 
education, labor, business, agriculture, trade associations, 
local service units, private industry councils, and appropriate 
community groups selected by the state council on vocational 
technical education; 
    (8) two members from the house of representatives, 
appointed by the speaker of the house of representatives; and 
    (9) two members from the senate, appointed by the 
subcommittee on committees of the committee on rules and 
administration. 
    Subd. 5.  [PLAN DESIGN.] The state council on vocational 
technical education shall select up to nine members appointed to 
the task force who represent the interests of business, labor, 
community, and education to serve as a plan design group to 
develop the plan described in subdivision 3.  The task force 
shall make recommendations to the plan design group on the 
merits of the plan design. 
    Subd. 6.  [ASSISTANCE OF AGENCIES.] Task force members may 
request information and assistance from any state agency or 
office to enable the task force to perform its duties. 
    Subd. 7.  [REPORT AND RECOMMENDATION.] The task force shall 
provide an interim report describing its progress to the 
legislature by February 15, 1992.  The task force shall report 
its plan and recommendations to the legislature by January 15, 
1993. 
    Sec. 17.  [BOARD OF TEACHING APPROPRIATION.] 
    Subdivision 1.  [BOARD OF TEACHING.] The sums indicated in 
this section are appropriated from the general fund to the board 
of teaching in the fiscal year indicated. 
    Subd. 2.  [FELLOWSHIP GRANTS.] For fellowship grants to 
highly qualified minorities seeking alternative preparation for 
licensure: 
     $100,000     .....     1993 
    A grant must not exceed $5,000 with one-half paid each year 
for two years.  Grants must be awarded on a competitive basis by 
the board.  Grant recipients must agree to remain as teachers in 
the district for two years if they satisfactorily complete the 
alternative preparation program and if their contracts as 
probationary teachers are renewed. 
    Sec. 18.  [STATE BOARD OF TECHNICAL COLLEGES 
APPROPRIATION.] 
    Subdivision 1.  [STATE BOARD OF TECHNICAL COLLEGES.] The 
sum indicated in this section is appropriated from the general 
fund to the state board of technical colleges for the state 
council on vocational technical education for the fiscal year 
designated. 
    Subd. 2.  [TASK FORCE ON EDUCATION AND EMPLOYMENT 
TRANSITIONS.] For the task force on education and employment 
transitions: 
    $40,000 ..... 1992 
    The appropriation is available until June 30, 1993. 
    The commissioner of education and the chancellor of the 
technical college system shall provide additional resources, as 
necessary, through the use of money appropriated to the state 
under the Carl D. Perkins Vocational and Applied Technology 
Education Act Amendments of 1990, Public Law Number 101-392, 
title II, part A, section 201. 
    Sec. 19.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums in this 
section are appropriated, unless otherwise indicated, from the 
general fund to the department of education for the fiscal years 
designated.  
    Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
Minnesota Statutes, section 124.214:  
    $6,018,000 ..... 1992 
    $6,018,000 ..... 1993 
    The 1992 appropriation includes $902,000 for 1991 and 
$5,116,000 for 1992. 
    The 1993 appropriation includes $902,000 for 1992 and 
$5,116,000 for 1993. 
    Subd. 3.  [INTEGRATION GRANTS.] For grants to districts 
implementing desegregation plans mandated by the state board: 
     $15,844,000    .....    1992 
     $15,844,000    .....    1993 
    $1,385,200 each year must be allocated to independent 
school district No. 709, Duluth; $7,782,300 each year must be 
allocated to special school district No. 1, Minneapolis; and 
$6,676,500 each year must be allocated to independent school 
district No. 625, St. Paul.  As a condition of receiving a 
grant, each district must continue to report its costs according 
to the uniform financial accounting and reporting system.  As a 
further condition of receiving a grant, each district must 
submit a report to the chairs of the education committees of the 
legislature about the actual expenditures it made for 
integration using the grant money.  These grants may be used to 
transport students attending a nonresident district under 
Minnesota Statutes, section 120.062, to the border of the 
resident district.  A district may allocate a part of the grant 
to the transportation fund for this purpose.  
    Subd. 4.  [GRANTS FOR COOPERATIVE DESEGREGATION.] For 
grants to develop interdistrict school desegregation programs: 
    $400,000 ..... 1992 
    $200,000 ..... 1993 
    The commissioner of education shall award grants to school 
districts to develop pilot interdistrict cooperative programs to 
reduce segregation, as defined in Minnesota Rules, part 
3535.0200, subpart 4, in school buildings. 
    To obtain a grant, a district that is required to submit a 
plan under Minnesota Rules, part 3535.0600, with the assistance 
of at least one adjacent district that is not required to submit 
a plan, shall submit an application to the commissioner. 
    The application shall contain a plan for: 
    (1) activities such as staff development, curriculum 
development, student leadership, student services, teacher and 
student exchanges, interdistrict meetings, and orientation for 
school boards, parents, and the community; 
    (2) implementation of the activities in clause (1) before 
possible student transfers occur; and 
    (3) possible voluntary transfer of students between 
districts beginning with the 1991-1992 school year. 
    A grant recipient shall submit a report about its 
activities. 
    Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
education aid according to Minnesota Statutes, sections 123.931 
to 123.947: 
    $8,892,000 ...... 1992 
    $8,892,000 ...... 1993 
    The 1992 appropriation includes $1,333,000 for 1991 and 
$7,559,000 for 1992. 
    The 1993 appropriation includes $1,333,000 for 1992 and 
$7,559,000 for 1993. 
    Subd. 6.  [SCHOOL LUNCH AND FOOD STORAGE AID.] For school 
lunch aid according to Minnesota Statutes, section 124.646, and 
Code of Federal Regulations, title 7, section 210.17, and for 
food storage and transportation costs for United States 
Department of Agriculture donated commodities; and for a 
temporary transfer to the commodity processing revolving fund to 
provide cash flow to permit schools and other recipients of 
donated commodities to take advantage of volume processing rates 
and for school milk aid according to Minnesota Statutes, section 
124.648:  
    $5,925,000 ..... 1992 
    $5,925,000 ..... 1993 
    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.  
    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.  
    Any temporary transfer processed in accordance with this 
subdivision to the commodity processing fund will be returned by 
June 30 in each year so that school lunch aid and food storage 
costs can be fully paid as scheduled.  
    Not more than $800,000 of the amount appropriated each year 
may be used for school milk aid. 
    Subd. 7.  [TOBACCO USE PREVENTION.] For tobacco use 
prevention aid according to Minnesota Statutes, section 124.252: 
    $100,000 ...... 1992 
    The 1992 appropriation includes $100,000 for 1991. 
    Subd. 8.  [CAREER TEACHER AID.] For career teacher aid 
according to Minnesota Statutes, section 124.276: 
    $750,000*..... 1992 
     * (The appropriation of $750,000 was vetoed by the 
governor.) 
    Any unexpended balance remaining in the first year does not 
cancel but is available in the second year. 
    Notwithstanding Minnesota Statutes 1989 Supplement, section 
124.276, subdivision 2, the aid may be used for the increased 
district contribution to the teachers' retirement association 
and to FICA resulting from the portion of the teaching contract 
that is in addition to the standard teaching contract of the 
district. 
    Subd. 9.  [MINORITY TEACHER INCENTIVES.] For minority 
teacher incentives: 
    $1,000,000 ..... 1992 
    Any unexpended balance remaining in 1992 does not cancel 
but is available in 1993. 
    Subd. 10.  [TEACHER MENTORSHIP.] For grants to develop 
mentoring programs in school districts according to Minnesota 
Statutes, section 125.231: 
     $350,000     .....     1992
     $350,000     .....     1993
    Any balance in the first year does not cancel and is 
available for the second year. 
    Subd. 11.  [EDUCATION IN AGRICULTURE LEADERSHIP 
COUNCIL.] For operating expenses of the Minnesota education in 
agriculture leadership council: 
     $25,000     .....     1992*
    * (The appropriation of $25,000 was vetoed by the governor.)
    Any balance in the first year does not cancel but is 
available in the second year.  
    Subd. 12.  [MINNESOTA PRINCIPAL ASSESSMENT CENTER.] For the 
Minnesota principal assessment center: 
     $70,000     .....     1992* 
     $70,000     .....     1993*
    * (The appropriations in subdivision 12 were vetoed by the 
governor.) 
    Subd. 13.  [COMPUTER ASSISTED INSTRUCTIONAL STRATEGY 
GRANTS.] For grants to school districts of up to $10,000 for 
each site in a district to purchase, lease, or lease purchase 
computer assisted instructional strategy software and hardware: 
     $250,000     .....     1992*
    * (The appropriation of $250,000 was vetoed by the 
governor.) 
    Software obtained with grant money shall include programmed 
teaching instructions that allow for individualized student 
learning.  The commissioner shall give preference to districts 
with a high level of low-achieving or at-risk pupils.  A grant 
is contingent upon a district providing money to match the grant 
money. 
    The appropriation is available until June 30, 1993. 
    Subd. 14.  [APPROPRIATIONS FOR DISTRICTS.] For grants to 
certain school districts: 
     $115,000     .....     1992
     $ 20,000     .....     1993
    $25,000 in 1992 is for a grant to independent school 
district No. 518, Worthington, for planning the construction of 
new residential facilities for the Lakeview program for 
handicapped students.  The grant must be matched with money from 
nonstate sources. * (The language "$25,000 in 1992" was vetoed 
by the governor.) 
    $40,000 in 1992 is for a grant to independent school 
district No. 707, Nett Lake, to pay insurance premiums under 
Minnesota Statutes, section 466.06. 
    $30,000 in 1992 is for the payment of the obligation of 
independent school district No. 707, Nett Lake, for transfer to 
the appropriate state agency for unemployment compensation. 
    $20,000 in 1992 and $20,000 in 1993 is for a grant to 
independent school district No. 695, Chisholm, for a leadership 
program. * (The language "$20,000 in 1992 and $20,000 in 1993" 
was vetoed by the governor.) 
    Subd. 15.  [ALCOHOL-IMPAIRED DRIVER.] For grants with funds 
received under Minnesota Statutes, section 171.29, subdivision 
2, paragraph (b), clause (4): 
     $695,000     .....     1992
     $695,000     .....     1993
    These appropriations are from the alcohol-impaired driver 
account of the special revenue fund.  Any funds credited for the 
department of education to the alcohol-impaired driver account 
of the special revenue fund in excess of the amounts 
appropriated in this subdivision are appropriated to the 
department of education and available in fiscal year 1992 and 
fiscal year 1993. 
    Up to $375,000 each year may be used by the department of 
education to contract for services to school districts stressing 
the dangers of driving after consuming alcohol.  No more than 
five percent of this amount may be used for administrative costs 
by the contract recipients. 
    Up to $100,000 each year may be used for grants to support 
student-centered programs to discourage driving after consuming 
alcohol. 
    Up to $225,000 and any additional funds each year may be 
used for chemical abuse prevention grants under section 3. 
    Subd. 16.  [CHILDREN'S COMMISSION.] For the legislative 
commission on children, youth, and their families:  
     $20,000     .....     1992*
    * (The appropriation of $20,000 was vetoed by the governor.)
    Any balance in the first year does not cancel but is 
available in the second year.  
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1990, sections 3.865; 3.866; 124.252; 
124C.01, subdivision 2; and 124C.41, subdivision 7, are repealed.

                                ARTICLE 9

                             MISCELLANEOUS 
    Section 1.  Minnesota Statutes 1990, section 120.062, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [WAIVER OF EXCEPTIONS TO DEADLINES.] (a) 
Notwithstanding subdivision 4, the following pupil application 
procedures apply: 
    (a) Upon agreement of the resident and nonresident school 
districts, a pupil may submit an application to a nonresident 
district after January 1 15 for enrollment beginning the 
following school year.  The pupil, the pupil's parent or 
guardian, the district of residence, and the district of 
attendance must observe, in a prompt and efficient manner, the 
application and notice procedures in subdivisions 4 and 6, 
except that the application and notice deadlines do not apply. 
    (b) Notwithstanding subdivision 4, If, as a result of 
entering into, modifying, or terminating an agreement under 
section 122.541 or 122.535 entered into after January 1, a pupil 
is assigned after December 1 to a different school, the pupil, 
the pupil's siblings, or any other pupil residing in the pupil's 
residence may submit an application to a nonresident 
district after January 1 but at any time before June July 1 for 
enrollment beginning the following school year.  
    (c) A pupil who becomes a resident of a school district 
after December 1 may submit an application to a nonresident 
district on January 15 or any time after that date for 
enrollment beginning any time before the following December 1. 
    (d) If the commissioner of education and the commissioner 
of human rights determine that the policies, procedures, or 
practices of a school district are in violation of Title VI of 
the Civil Rights Act of 1964 (Public Law Number 88-352) or 
chapter 363, any pupil in the district may submit an application 
to a nonresident district at any time for enrollment beginning 
at any time. 
    For exceptions under this subdivision, the pupil applicant, 
the pupil's applicant's parent or guardian, the district of 
residence, and the district of attendance must observe, in a 
prompt and efficient manner, the application and notice 
procedures in subdivisions 4 and 6, except that the application 
and notice deadlines do not apply. 
    Sec. 2.  [120.0621] [ENROLLMENT OPTIONS PROGRAMS IN BORDER 
STATES.] 
    Subdivision 1.  [OPTIONS FOR ENROLLMENT IN ADJOINING 
STATES.] Minnesota pupils and pupils residing in adjoining 
states may enroll in school districts in the other state 
according to: 
    (1) section 120.08, subdivision 2; or 
    (2) this section. 
    Subd. 2.  [PUPILS IN MINNESOTA.] A Minnesota resident pupil 
may enroll in a school district in an adjoining state if the 
district is located in a county that borders Minnesota. 
    Subd. 3.  [PUPILS IN BORDERING STATES.] A non-Minnesota 
pupil who resides in an adjoining state in a county that borders 
Minnesota may enroll in a Minnesota school district if either 
the school board of the district in which the pupil resides or 
state in which the pupil resides pays tuition to the school 
district in which the pupil is enrolled.  The tuition must be an 
amount that is at least comparable to the tuition specified in 
section 120.08, subdivision 1. 
    Subd. 4.  [PROCEDURAL REQUIREMENTS.] Except as otherwise 
provided in this section, the rights and duties set forth in 
section 120.062 apply to pupils, parents, and school districts 
if a pupil enrolls in a nonresident district according to this 
section. 
    Subd. 5.  [AID ADJUSTMENTS.] The state of Minnesota shall 
make adjustments to general education aid, capital expenditure 
facilities aid, and capital expenditure equipment aid according 
to sections 124A.036, subdivision 5, and 124.245, subdivision 6, 
respectively, for the resident district of a Minnesota pupil 
enrolled in another state according to this section.  The state 
of Minnesota shall reimburse the nonresident district, according 
to section 120.08, subdivision 1, in which a Minnesota pupil is 
enrolled according to this section. 
    Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
effective with respect to South Dakota upon enactment of 
provisions by South Dakota that are essentially similar to the 
rights and duties of pupils residing in districts located in all 
South Dakota counties that border Minnesota.  After July 1, 
1993, this section is effective with respect to any other 
bordering state upon enactment of provisions by the bordering 
state that are essentially similar to the rights and duties of 
pupils residing in and districts located in all counties that 
border Minnesota. 
    Sec. 3.  [120.064] [OUTCOME-BASED SCHOOLS.] 
    Subdivision 1.  [PURPOSES.] The purpose of this section is 
to: 
    (1) improve pupil learning; 
    (2) increase learning opportunities for pupils; 
    (3) encourage the use of different and innovative teaching 
methods; 
    (4) require the measurement of learning outcomes and create 
different and innovative forms of measuring outcomes; 
    (5) establish new forms of accountability for schools; or 
    (6) create new professional opportunities for teachers, 
including the opportunity to be responsible for the learning 
program at the school site. 
    Subd. 2.  [APPLICABILITY.] This section applies only to 
outcome-based schools formed and operated under this section. 
    Subd. 3.  [SPONSOR.] (a) A school board may sponsor an 
outcome-based school. 
    (b) A school board may authorize a maximum of two 
outcome-based schools.  No more than a total of eight 
outcome-based schools may be authorized.  The state board of 
education shall advise potential sponsors when the maximum 
number of outcome-based schools has been authorized. 
    Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
authorize one or more licensed teachers under section 215.182, 
subdivision 2, to form and operate an outcome-based school 
subject to approval by the state board of education.  The 
teachers shall organize and operate a school as a cooperative 
under chapter 308A or nonprofit corporation under chapter 317A. 
    (b) Before a teacher may begin to form and operate a 
school, the sponsor must file an affidavit with the state board 
of education stating its intent to authorize an outcome-based 
school.  The affidavit must state the terms and conditions under 
which the sponsor would authorize an outcome-based school.  The 
state board must approve or disapprove the sponsor's proposed 
authorization within 30 days of receipt of the affidavit.  
Failure to obtain state board approval precludes a sponsor from 
authorizing the outcome-based school that was the subject of the 
affidavit. 
    (c) The teachers authorized to organize and operate a 
school shall hold an election for members of the school's board 
of directors.  All staff members employed at the school and all 
parents of children enrolled in the school may participate in 
the election.  Licensed teachers employed at the school must be 
a majority of the members of the board of directors. 
    (d) The sponsor's authorization for an outcome-based school 
shall be in the form of a written contract signed by the sponsor 
and the board of directors of the outcome-based school. 
    Subd. 5.  [CONTRACT.] The contract for an outcome-based 
school shall be in writing and contain at least the following: 
    (1) a description of a program that carries out one or more 
of the purposes in subdivision 1; 
    (2) specific outcomes pupils are to achieve under 
subdivision 10; 
    (3) admission policies and procedures; 
    (4) management and administration of the school; 
    (5) requirements and procedures for program and financial 
audits; 
    (6) how the school will comply with subdivisions 8, 13, 15, 
and 21; 
    (7) assumption of liability by the outcome-based school; 
    (8) types and amounts of insurance coverage to be obtained 
by the outcome-based school; and 
    (9) the term of the contract which may be up to three years.
    Subd. 6.  [ADVISORY COMMITTEE.] (a) The state board of 
education shall appoint an advisory committee comprised of ten 
members.  At least two members shall be African American, two 
members shall be American Indian, two members shall be Asian 
Pacific American, and two members shall be Hispanic.  One of 
each of the two members shall reside within the seven-county 
metropolitan area and one shall reside within Minnesota but 
outside of the seven-county metropolitan area.  In addition, at 
least one of each of the two members shall be a parent of a 
child in any of the grades kindergarten through 12.  As least 
five of the ten members shall have family incomes that would 
make them eligible for free or reduced school lunches. 
    (b) Each sponsor listed in subdivision 3 shall request the 
advisory committee to review and make recommendations about a 
proposal it receives from an individual or organization that is 
predominately Caucasian to establish an outcome-based school in 
which one-half or more of the pupils are expected to be 
non-Caucasian. 
    (c) Each sponsor listed in subdivision 3 may request the 
advisory committee to review and make recommendations about a 
proposal it receives from an individual or organization that is 
predominately non-Caucasian if requested to do so by the 
individual or organization. 
    Subd. 7.  [EXEMPTION FROM STATUTES AND RULES.] Except as 
provided in this section, an outcome-based school is exempt from 
all statutes and rules applicable to a school board or school 
district, although it may elect to comply with one or more 
provisions of statutes or rules. 
    Subd. 8.  [REQUIREMENTS.] (a) An outcome-based school shall 
meet the same health and safety requirements required of a 
school district. 
    (b) The school must be located in Minnesota.  Its specific 
location may not be prescribed or limited by a sponsor or other 
authority except a zoning authority. 
    (c) The school must be nonsectarian in its programs, 
admission policies, employment practices, and all other 
operations.  A sponsor may not authorize an outcome-based school 
or program that is affiliated with a nonpublic sectarian school 
or a religious institution. 
    (d) The primary focus of the school must be to provide a 
comprehensive program of instruction for at least one grade or 
age group from five through 18 years of age.  Instruction may be 
provided to people younger than five years and older than 18 
years of age. 
    (e) The school may not charge tuition. 
    (f) The school is subject to and shall comply with chapter 
363 and section 126.21. 
    (g) The school is subject to and shall comply with the 
pupil fair dismissal act, sections 127.26 to 127.39, and the 
Minnesota public school fee law, sections 120.71 to 120.76. 
    (h) The school is subject to the same financial audits, 
audit procedures, and audit requirements as a school district.  
The audit must be consistent with the requirements of sections 
121.901 to 121.917, except to the extent deviations are 
necessary because of the program at the school.  The department 
of education, state auditor, or legislative auditor may conduct 
financial, program, or compliance audits. 
    (i) The school is a school district for the purposes of 
tort liability under chapter 466. 
    Subd. 9.  [ADMISSION REQUIREMENTS.] The school may limit 
admission to: 
    (1) pupils within an age group or grade level; 
    (2) people who are eligible to participate in the high 
school graduation incentives program under section 126.22; 
    (3) pupils who have a specific affinity for the school's 
teaching methods, the school's learning philosophy, or a subject 
such as mathematics, science, fine arts, performing arts, or a 
foreign language; or 
    (4) residents of a specific geographic area if the 
percentage of the population of non-Caucasian people in the 
geographic area is greater than the percentage of the 
non-Caucasian population in the congressional district in which 
the geographic area is located, as long as the school reflects 
the racial and ethnic diversity of that area. 
    The school shall enroll an eligible pupil who submits a 
timely application, unless the number of applications exceeds 
the capacity of a program, class, grade level, or building.  In 
this case, pupils shall be accepted by lot. 
    The school may not limit admission to pupils on the basis 
of intellectual ability, measures of achievement or aptitude, or 
athletic ability.  
    Subd. 10.  [PUPIL PERFORMANCE.] An outcome-based school 
must design its programs to at least meet the outcomes adopted 
by the state board of education.  In the absence of state board 
requirements, the school must meet the outcomes contained in the 
contract with the sponsor.  The achievement levels of the 
outcomes contained in the contract may exceed the achievement 
levels of any outcomes adopted by the state board. 
    Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] The 
school's board of directors shall employ and contract with 
necessary teachers, as defined by section 125.03, subdivision 1, 
who hold valid licenses to perform the particular service for 
which they are employed in the school.  The board may employ 
necessary employees who are not required to hold teaching 
licenses to perform duties other than teaching and may contract 
for other services.  The board may discharge teachers and 
nonlicensed employees. 
     The board of directors also shall decide matters related to 
the operation of the school, including budgeting, curriculum and 
operating procedures. 
    Subd. 12.  [HANDICAPPED PUPILS.] The school must comply 
with sections 120.03 and 120.17 and rules relating to the 
education of handicapped pupils as though it were a school 
district. 
    Subd. 13.  [LENGTH OF SCHOOL YEAR.] An outcome-based school 
shall provide instruction each year for at least the number of 
days required by section 120.101, subdivision 5.  It may provide 
instruction throughout the year according to sections 120.59 to 
120.67 or 121.585. 
    Subd. 14.  [REPORTS.] An outcome-based school must report 
at least annually to its sponsor and the state board of 
education the information required by the sponsor or the state 
board.  The reports are public data under chapter 13. 
    Subd. 15.  [TRANSPORTATION.] Transportation for pupils 
enrolled at a school shall be provided by the district in which 
the school is located, according to sections 120.062, 
subdivision 9, and 123.39, subdivision 6, for a pupil residing 
in the same district in which the outcome-based school is 
located.  Transportation may be provided by the district in 
which the school is located, according to sections 120.062, 
subdivision 9, and 123.39, subdivision 6, for a pupil residing 
in a different district. 
    Subd. 16.  [LEASED SPACE.] The school may lease space from 
a board eligible to be a sponsor or other public or private 
nonprofit nonsectarian organization. 
    Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
school before the applicant has secured its space, equipment, 
facilities, and personnel if the applicant indicates the 
authority is necessary for it to raise working capital.  A 
sponsor may not authorize a school before the state board of 
education has approved the authorization. 
    Subd. 18.  [DISSEMINATE INFORMATION.] The department of 
education must disseminate information to the public, directly 
and through sponsors, on how to form and operate an 
outcome-based school and how to utilize the offerings of an 
outcome-based school. 
    Subd. 19.  [LEAVE TO TEACH IN A SCHOOL.] If a teacher 
employed by a school district makes a written request for an 
extended leave of absence to teach at an outcome-based school, 
the school district must grant the leave.  The school district 
must grant a leave for any number of years requested by the 
teacher, and must extend the leave at the teacher's request.  
The school district may require that the request for a leave or 
extension of leave be made up to 90 days before the teacher 
would otherwise have to report for duty.  Except as otherwise 
provided in this subdivision and except for section 125.60, 
subdivision 6a, the leave is governed by section 125.60, 
including, but not limited to, reinstatement, notice of 
intention to return, seniority, salary, and insurance. 
    During a leave, the teacher may continue to aggregate 
benefits and credits in the teachers' retirement association 
account by paying both the employer and employee contributions 
based upon the annual salary of the teacher for the last full 
pay period before the leave began.  The retirement association 
may impose reasonable requirements to efficiently administer 
this subdivision. 
    Subd. 20.  [COLLECTIVE BARGAINING.] Employees of the board 
of directors of the school may, if otherwise eligible, organize 
under chapter 179A and comply with its provisions.  The board of 
directors of the school is a public employer, for the purposes 
of chapter 179A, upon formation of one or more bargaining units 
at the school.  Bargaining units at the school are separate from 
any other units. 
    Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
duration of the contract with a sponsor shall be for the term 
contained in the contract according to subdivision 5.  The 
sponsor, subject to state board of education approval, may or 
may not renew a contract at the end of the term for any ground 
listed in paragraph (b).  A sponsor or the state board may 
unilaterally terminate a contract during the term of the 
contract for any ground listed in paragraph (b).  At least 60 
days before not renewing or terminating a contract, the sponsor, 
or the state board if the state board is acting to terminate a 
contract, shall notify the board of directors of the school of 
the proposed action in writing.  The notice shall state the 
grounds for the proposed action in reasonable detail and that 
the school's board of directors may request in writing an 
informal hearing before the sponsor or the state board within 14 
days of receiving notice of nonrenewal or termination of the 
contract.  Failure by the board of directors to make a written 
request for a hearing within the 14 day period shall be treated 
as acquiescence to the proposed action.  Upon receiving a timely 
written request for a hearing, the sponsor or the state board 
shall give reasonable notice to the school's board of directors 
of the hearing date.  The sponsor or the state board shall 
conduct an informal hearing before taking final action.  The 
sponsor shall take final action to renew or not renew a contract 
by the last day of classes in the school year. 
    (b) A contract may be terminated or not renewed upon any of 
the following grounds: 
    (1) failure to meet the requirements for pupil performance 
contained in the contract; 
    (2) failure to meet generally accepted standards of fiscal 
management; 
    (3) for violations of law; or 
    (4) other good cause shown. 
    If a contract is terminated or not renewed, the school 
shall be dissolved according to the applicable provisions of 
chapter 308A or 317A. 
    Subd. 22.  [PUPIL ENROLLMENT.] If a contract is not renewed 
or is terminated according to subdivision 21, a pupil who 
attended the school, siblings of the pupil, or another pupil who 
resides in the same place as the pupil may enroll in the 
resident district or may submit an application to a nonresident 
district according to section 120.062 at any time.  Applications 
and notices required by section 120.062 shall be processed and 
provided in a prompt manner.  The application and notice 
deadlines in section 120.062 do not apply under these 
circumstances. 
    Subd. 23.  [GENERAL AUTHORITY.] The board of directors of 
an outcome-based school may sue and be sued.  The board may not 
levy taxes or issue bonds. 
    Subd. 24.  [IMMUNITY.] The state board of education, 
members of the state board, a sponsor, members of the board of a 
sponsor in their official capacity, and employees of a sponsor 
are immune from civil or criminal liability with respect to all 
activities related to an outcome-based school they approve or 
sponsor.  The board of directors shall obtain at least the 
amount of and types of insurance required by the contract, 
according to subdivision 5. 
    Sec. 4.  Minnesota Statutes 1990, section 120.59, is 
amended to read: 
    120.59 [FLEXIBLE SCHOOL PURPOSE OF FLEXIBLE LEARNING YEAR 
PROGRAMS; PURPOSE.] 
    The purpose of sections 120.59 to 120.67 is to authorize 
school districts to evaluate, plan and employ the use of 
flexible school learning year programs.  It is anticipated that 
the open selection of the type of flexible school learning year 
operation from a variety of alternatives will allow each 
district which seeks to utilize this concept to suitably fulfill 
the educational needs of its pupils.  These alternatives shall 
include, but not be limited to, various 45-15 plans, 
four-quarter plans, quinmester plans, extended school learning 
year plans, flexible all-year plans, and four-day week plans.  
    Sec. 5.  Minnesota Statutes 1990, section 120.60, is 
amended to read: 
    120.60 [DEFINITION OF FLEXIBLE LEARNING YEAR.] 
    "Flexible school learning year program" means any school 
district plan approved by the state board of education which 
utilizes school buildings and facilities during the entire year 
and/or which provides forms of optional scheduling of pupils and 
school personnel during the school learning year in elementary 
and secondary schools or residential facilities for handicapped 
children.  
    Sec. 6.  Minnesota Statutes 1990, section 120.61, is 
amended to read: 
    120.61 [ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.] 
    The school board of any district, with the approval of the 
state board of education, may establish and operate a flexible 
school learning year program in one or more of the schools day 
or residential facilities for handicapped children within the 
district.  
    Sec. 7.  Minnesota Statutes 1990, section 120.62, is 
amended to read: 
    120.62 [DIVISION OF CHILDREN INTO GROUPS.] 
    The school board of any district operating a flexible 
school learning year program in one or more of the schools 
facilities within the district shall divide the students of each 
selected school facility into as many groups as necessary to 
accommodate this program.  Students of the same family shall be 
placed in the same group unless one or more of these students is 
enrolled in a special education class or unless the parent or 
guardian of these students requests that the students be placed 
in different groups.  No school board shall discriminate on the 
basis of race, color, creed, religion, marital status, status 
with regard to public assistance, sex, or national origin when 
assigning pupils to attendance groups pursuant to this section.  
    Sec. 8.  Minnesota Statutes 1990, section 120.63, is 
amended to read: 
    120.63 [PUBLIC HEARING BEFORE IMPLEMENTATION.] 
    Prior to implementing a flexible school learning year 
program in any school facility of the district, the school board 
shall negotiate with the teachers, principals, assistant 
principals, supervisory personnel and employees of the school to 
the extent required by the public employment labor relations 
act, and shall consult with the parents of pupils who would be 
affected by the change, and with the community at large.  These 
procedures shall include at least three informational meetings 
for which the board has given published notice to the teachers 
and employees and to the parents of pupils affected.  
    Sec. 9.  Minnesota Statutes 1990, section 120.64, is 
amended to read: 
    120.64 [ASSIGNMENT OF TEACHERS.] 
    Subdivision 1.  In school districts where a flexible school 
learning year program is implemented in fewer than all of 
the schools facilities maintained by the school district, the 
board of the school district shall make every reasonable effort 
to assign qualified teachers who prefer the regular school a 
traditional schedule to schools facilities of the same level 
retaining the regular school a traditional schedule. 
    Subd. 2.  A full-time classroom teacher currently employed 
by a school district which converts to a flexible school 
learning year program shall not, without the teacher's written 
consent, be required to teach under this program (1) more or 
less than the number of scheduled days or their equivalent 
the schools facilities of the district were maintained during 
the year preceding implementation of the flexible school 
learning year program; (2) in a period of the calendar year 
substantially different from the period in which the teacher 
taught during the year preceding implementation of the flexible 
learning year program. 
    Subd. 3.  In no event shall a teacher's continuing contract 
rights to a position held the year preceding implementation of a 
flexible school learning year program or teaching experience 
earned during a probationary period the year preceding 
implementation be lost or impaired upon adoption of a 
flexible school learning year program.  If the year of teaching 
preceding implementation was the end of a probationary period, 
the continuing contract right to a full year's contract which 
normally would be acquired for the next succeeding school 
learning year shall be acquired in the year of adoption of the 
flexible program. 
    Subd. 4.  Any school district operating a flexible school 
learning year program shall enter into one contract governing 
the entire school learning year with each teacher employed in a 
flexible program.  If individual teachers contract to teach less 
than a period of 175 days during a school learning year, each 
175 days of employment accrued during any five-year period after 
the adoption of a flexible learning year program shall be deemed 
consecutive and shall constitute a full year's employment for 
purposes of establishing and retaining continuing contract 
rights to a full school learning year position pursuant to 
sections 125.12, subdivisions 3 and 4, and 125.17, subdivisions 
2 and 3.  A teacher who has not been discharged or advised of a 
refusal to renew the teacher's contract by the applicable date, 
as specified in section 125.12 or 125.17, in the year in which 
the teacher will complete the requisite number of days for 
securing a continuing contract shall have a continuing 
full school learning year contract with the district. 
    Subd. 5.  Continuing contract rights established pursuant 
to this section shall not be impaired or lost by the termination 
of a flexible school learning year program. 
    Sec. 10.  Minnesota Statutes 1990, section 120.65, is 
amended to read: 
    120.65 [ESTABLISHMENT AND APPROVAL.] 
    The state board of education shall: 
    (1) establish standards and requirements for the 
qualification of school districts which may operate on a 
flexible school learning year basis; 
    (2) establish standards and evaluation criteria for 
flexible school learning year programs; 
    (3) prepare and distribute all necessary forms for 
application by any school district for state authorization for a 
flexible school learning year program; 
    (4) review the proposed flexible school learning year 
program of any qualified school district as to conformity to 
standards and the evaluation of appropriateness of priorities, 
workability of procedure and overall value; 
    (5) approve or disapprove proposed flexible school learning 
year programs.  
    Sec. 11.  Minnesota Statutes 1990, section 120.66, is 
amended to read: 
    120.66 [POWERS AND DUTIES OF THE STATE BOARD.] 
    Subdivision 1.  The state board of education shall: 
    (1) Promulgate rules necessary to the operation of sections 
120.59 to 120.67; 
    (2) Cooperate with and provide supervision of flexible 
school learning year programs to determine compliance with the 
provisions of sections 120.59 to 120.67, the state board 
standards and qualifications, and the proposed program as 
submitted and approved; 
    (3) Provide any necessary adjustments of (a) attendance and 
membership computations and (b) the dates and percentages of 
apportionment of state aids; 
    (4) Consistent with the definition of "average daily 
membership" in section 124.17, subdivision 2, furnish the board 
of a district implementing a flexible school learning year 
program with a formula for computing average daily membership.  
This formula shall be computed so that tax levies to be made by 
the district, state aids to be received by the district, and any 
and all other formulas based upon average daily membership are 
not affected solely as a result of adopting this plan of 
instruction. 
    Subd. 2.  Sections 120.59 to 120.67 shall not be construed 
to authorize the state board to require the establishment of a 
flexible school learning year program in any district in which 
the school board has not voted to establish, maintain, and 
operate such a program. 
    Sec. 12.  Minnesota Statutes 1990, section 120.67, is 
amended to read: 
    120.67 [TERMINATION OF PROGRAM.] 
    The school board of any district, with the approval of the 
state board of education, may terminate a flexible school 
learning year program in one or more of the schools day or 
residential facilities for handicapped children within the 
district.  This section shall not be construed to permit an 
exception to section 120.101 or 124.19. 
    Sec. 13.  Minnesota Statutes 1990, section 121.11, 
subdivision 12, is amended to read: 
    Subd. 12.  [ADMINISTRATIVE RULES.] The state board may 
adopt new rules only upon specific authority other than under 
this subdivision.  The state board may amend or repeal any of 
its existing rules.  Notwithstanding the provisions of section 
14.05, subdivision 4, the state board may grant a variance to 
its rules upon application by a school district for purposes of 
implementing experimental programs in learning or school 
management that attempt to make better use of community 
resources or available technology.  Notwithstanding any law to 
the contrary, and only upon receiving the agreement of the state 
board of teaching, the state board of education may grant a 
variance to its rules governing licensure of teachers for those 
teachers licensed by the board of teaching.  The state board may 
grant a variance, without the agreement of the board of 
teaching, to its rules governing licensure of teachers for those 
teachers it licenses. 
    Sec. 14.  [121.162] [RECEIPTS; FUNDS.] 
    Subdivision 1.  [CONFERENCE AND WORKSHOP FEES.] The 
commissioner may establish procedures to set and collect fees to 
defray costs of conferences and workshops conducted by the 
department.  The commissioner may keep accounts as necessary 
within the state's accounting system for the deposit of the 
conference and workshop fee receipts.  
    Subd. 2.  [APPROPRIATION.] The receipts collected under 
subdivision 1 are appropriated for payment of expenses relating 
to the workshops and conferences.  
    Subd. 3.  [CARRY-OVER AUTHORITY.] Unobligated balances 
under subdivision 1 may be carried over as follows:  
    (1) when expenditures for which the receipts have been 
designated occur in the following fiscal year; or 
    (2) to allow retention of minor balances in accounts for 
conferences that are scheduled annually.  
    Subd. 4.  [RECEIPTS AND REIMBURSEMENTS.] The commissioner 
may accept receipts and payments from public and nonprofit 
private agencies for related costs for partnership or 
cooperative endeavors involving education activities that are 
for the mutual benefit of the state, the department, and the 
other agency.  The commissioner may keep accounts as necessary 
within the state's accounting system.  The receipts must be 
deposited in the special revenue fund. 
    Sec. 15.  Minnesota Statutes 1990, section 121.931, 
subdivision 6a, is amended to read: 
    Subd. 6a.  [DATA STANDARD COMPLIANCE.] The department shall 
monitor and enforce compliance with the data standards.  For 
financial accounting data and property accounting data, the 
department shall develop statistically based tests to determine 
data quality.  The department shall annually test the data 
submitted by districts or regional centers and determine which 
districts submit inaccurate data.  The department shall require 
these districts to review the data in question and, if found in 
error, to submit corrected data.  The department shall develop 
standard editing checks for data submitted and shall provide 
these to districts and regional centers. 
    Sec. 16.  Minnesota Statutes 1990, section 121.931, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPROVAL POWERS.] The state board, with the 
advice and assistance of the ESV computer council and the 
information policy office of the department of administration, 
shall approve or disapprove the following, according to the 
criteria in section 121.937 and rules adopted pursuant to 
subdivision 8: 
    (a) the creation of regional management information centers 
pursuant to section 121.935; and 
    (b) the transfer by a district of its affiliation from one 
regional management information center to another; 
    (c) the use by a district of a management information 
system other than the ESV-IS subsystem through the regional 
management information center or a state board approved 
alternative system management information systems pursuant to 
section 121.936, subdivisions 2 to 4; and 
    (d) annual and biennial plans and budgets submitted by 
regional management information centers pursuant to section 
121.935, subdivisions 3 and 4. 
    Sec. 17.  Minnesota Statutes 1990, section 121.931, 
subdivision 8, is amended to read: 
    Subd. 8.  [RULES.] The state board shall adopt rules 
prescribing criteria for its decisions pursuant to subdivision 
7.  These rules shall include at least the criteria specified in 
section 121.937.  The state board shall also adopt rules 
specifying the criteria and the process for determining which 
data and data elements are included in the data element 
dictionary and the annual data acquisition calendar developed 
pursuant to section 121.932, subdivisions 1 and subdivision 2.  
The state board shall adopt rules requiring regional management 
information centers to use cost accounting procedures which will 
account by district for resources consumed at the center for 
support of each ESV-IS subsystem and of any approved alternative 
financial management information systems.  The adoption of the 
systems architecture plan and the long range plan pursuant to 
subdivisions 3 and 4 shall be exempt from the administrative 
procedure act but, to the extent authorized by law to adopt 
rules, the board may use the provisions of section 14.38, 
subdivisions 5 to 9. 
    Sec. 18.  Minnesota Statutes 1990, section 121.932, 
subdivision 2, is amended to read: 
    Subd. 2.  [DATA ACQUISITION CALENDAR.] The department of 
education shall maintain a current annual data acquisition 
calendar specifying the reports which districts are required to 
provide to the department, the reports which regional management 
information centers are required to provide must be provided to 
the department for their affiliated districts, and the dates 
when these reports are due.  
    Sec. 19.  Minnesota Statutes 1990, section 121.932, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXEMPTION FROM CHAPTER 14.] Except as provided 
in section 121.931, subdivision 8, the data element dictionary, 
annual data acquisition calendar, and the essential data 
elements are exempt from the administrative procedure act but, 
to the extent authorized by law to adopt rules, the board may 
use the provisions of section 14.38, subdivisions 5 to 9. 
    Sec. 20.  Minnesota Statutes 1990, section 121.932, 
subdivision 5, is amended to read: 
    Subd. 5.  [ESSENTIAL DATA.] The department shall maintain a 
list of essential data elements which must be recorded and 
stored about each pupil, licensed and nonlicensed staff member, 
and educational program.  Each school district shall send the 
essential data to the ESV regional computer center to which it 
belongs, where it shall be assembled and transmitted or to the 
department in the form and format prescribed by the department.  
    Sec. 21.  Minnesota Statutes 1990, section 121.933, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PERMITTED DELEGATIONS.] The state board of 
technical colleges, the state board of education, and the 
department may provide, by the delegation of powers and duties 
or by contract, for the implementation and technical support of 
ESV-IS and SDE-IS, including the development of applications 
software pursuant to section 121.931, subdivision 5, by the 
Minnesota educational computing consortium, by a regional 
management information center or by any other appropriate 
provider.  
    Sec. 22.  Minnesota Statutes 1990, section 121.934, 
subdivision 7, is amended to read: 
    Subd. 7.  [ADVISORY DUTIES.] (a) Pursuant to section 
121.931, the ESV computer council shall advise and assist the 
state board in: 
    (1) the development of the long-range plan and the systems 
architecture plan; 
    (2) the development of applications software for ESV-IS and 
SDE-IS; 
    (3) the approval of the creation and alteration of regional 
management information centers; 
    (4) the approval of the use by districts of alternative 
management information systems; and 
    (5) the statewide applicability of alternative management 
information systems proposed by districts; and 
    (6) the approval of annual and biennial plans and budgets 
of regional management information centers; and 
    (7) the monitoring and enforcement of compliance with data 
standards. 
    (b) The council shall also review the data standards 
recommended by the council on uniform financial accounting and 
reporting standards and the advisory task forces on uniform 
standards for student reporting and personnel/payroll reporting 
and make recommendations to the state board concerning: 
    (1) the consistency of the standards for finance, property, 
student and personnel/payroll data with one another; 
    (2) the implications of the standards for implementation of 
ESV-IS and SDE-IS; and 
     (3) the consistency of the standards with the systems 
architecture plan and the long-range plan. 
     (c) Pursuant to section 121.932, the council shall advise 
the department in the development and operation of SDE-IS. 
    Sec. 23.  Minnesota Statutes 1990, section 121.935, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION.] Any group of two or more 
independent, special or common school districts may with the 
approval of the state board pursuant to sections 121.931 and 
121.937 create a regional management information center pursuant 
to section 123.58 or 471.59 to provide computer services to 
school districts.  A regional management information center 
which is not in existence on July 1, 1979 shall not come into 
existence until the first July 1 of an odd-numbered year after 
its creation is approved by the state board or until it can be 
accommodated by state appropriations, whichever occurs 
first.  Each member of the center board shall be a current 
member of a member school board.  
    Sec. 24.  Minnesota Statutes 1990, section 121.935, 
subdivision 4, is amended to read: 
    Subd. 4.  [BIENNIAL ANNUAL BUDGET ESTIMATES.] Every 
regional management information center shall submit to the 
department by July 1 of each even-numbered year a biennial an 
annual budget estimate for its administrative and management 
computer activities.  The biennial budget estimates shall be in 
a program budget format and shall include all estimated and 
actual revenues, expenditures, and fund balances of the 
center for the appropriate fiscal years.  Budget forms developed 
pursuant to section 16A.10 may be used for these estimates.  The 
department of education shall assemble this budget information 
into a supplemental biennial budget summary for the statewide 
elementary, secondary, and vocational management information 
system.  Copies of this supplemental biennial the budget summary 
shall be provided to the ESV computer council and the department 
of finance, and shall be available to the legislature upon 
request.  
    Sec. 25.  Minnesota Statutes 1990, section 121.935, 
subdivision 6, is amended to read: 
    Subd. 6.  [FEES.] Regional management information centers 
may charge fees to affiliated districts for the cost of services 
provided to the district and the district's proportionate share 
of outstanding regional debt obligations, as defined in section 
475.51, for computer hardware.  If a district uses a state 
approved alternative finance system for processing its detailed 
transactions or transfers to another region, the district is 
liable for its contracted proportionate share of the outstanding 
regional debt obligation.  The district is not liable for any 
additional outstanding regional debt obligations that occurs 
occur after written notice is given to transfer or use an 
alternative finance system.  A regional management information 
center must not charge a district for transferring the 
district's summary financial data and essential data elements to 
the state.  The regional management information center may 
charge the district for any service it provides to, or performs 
on behalf of, a district to render the data in the proper format 
for reporting to the state.  If a district transfers to another 
regional center, the center shall transfer to the district 
within 90 days after the end of the fiscal year the district's 
per actual pupil share of the center's unreserved fund balance 
in each fund.  The fund balance shall be determined as of June 
30 preceding the year the district transfers. 
    Sec. 26.  Minnesota Statutes 1990, section 121.935, is 
amended by adding a subdivision to read: 
    Subd. 8.  [COMPUTER HARDWARE PURCHASE.] A regional 
management information center may not purchase or enter into a 
lease-purchase agreement for computer hardware in excess of 
$100,000 without unanimous consent of the center board. 
    Sec. 27.  Minnesota Statutes 1990, section 121.936, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MANDATORY PARTICIPATION.] (a) Every 
district shall perform financial accounting and reporting 
operations on a financial management accounting and reporting 
system utilizing multidimensional accounts and records defined 
in accordance with the uniform financial accounting and 
reporting standards adopted by the state board pursuant to 
sections 121.90 to 121.917.  
    (b) Every school district shall be affiliated with one and 
only one regional management information center.  This 
affiliation shall include at least the following components:  
    (1) the center shall provide financial management 
accounting reports to the department of education for the 
district to the extent required by the data acquisition 
calendar; 
    (2) the district shall process every detailed financial 
transaction using, at the district's option, either the ESV-IS 
finance subsystem through the center or an alternative system 
approved by the state board. 
    Notwithstanding the foregoing, a district may process and 
submit its financial data to a region or the state in summary 
form if it operates an approved alternative system or 
participates in a state approved pilot test of an alternative 
system and is reporting directly to the state as of January 1, 
1987.  
    (c) The provisions of this subdivision shall not be 
construed to prohibit a district from purchasing services other 
than those described in clause (b) from a center other than the 
center with which it is affiliated pursuant to clause (b). 
    Districts operating an approved alternative system may 
transfer their affiliation from one regional management 
information center to another.  At least one year prior to July 
1 of the year in which the transfer is to occur, the district 
shall give written notice to its current region of affiliation 
of its intent to transfer to another region.  The one year 
notice requirement may be waived if the two regions mutually 
agree to the transfer.  
    Sec. 28.  Minnesota Statutes 1990, section 121.936, 
subdivision 2, is amended to read: 
    Subd. 2.  [ALTERNATIVE MANAGEMENT INFORMATION SYSTEMS.] A 
district may be exempted from the requirement in subdivision 1, 
clause (b)(2), if it receives the approval of the state board to 
use uses another financial management information system 
approved by the state board.  A district permitted before July 
1, 1980, to submit its financial transactions in summary form to 
a regional management information center pursuant to subdivision 
1 may continue to submit transactions in the approved form 
without obtaining the approval of the state board pursuant to 
this subdivision.  A district may be exempted from the 
requirement in subdivision 1a, clause (b), if it receives the 
approval of the state board to use an alternative fixed assets 
property management information system.  Any district desiring 
to use another management information system not previously 
approved by the state board shall submit a detailed proposal to 
the state board and the ESV computer council.  The detailed 
proposal shall include a statement of all costs to the district, 
regional management information center or state for software 
development or operational services needed to provide data to 
the regional management information center pursuant to the data 
acquisition calendar. 
     Sec. 29.  Minnesota Statutes 1990, section 121.936, 
subdivision 4, is amended to read: 
    Subd. 4.  [ALTERNATIVE SYSTEMS; STATE BOARD.] Upon approval 
of the proposal by the state board the district may proceed in 
accordance with its approved proposal.  Except as provided in 
section 121.931, subdivision 5, an alternative system approved 
pursuant to this subdivision shall be developed and purchased at 
the expense of the district.  Notwithstanding any law to the 
contrary, when an alternative system has been approved by the 
state board, another district may use the system without state 
board approval.  A district which has submitted a proposal for 
an alternative system which has been disapproved may not submit 
another proposal for that fiscal year, but it may submit a 
proposal for the subsequent fiscal year. 
    Sec. 30.  Minnesota Statutes 1990, section 121.937, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPROVAL CRITERIA.] The criteria adopted 
by the state board for approval of the creation of a regional 
management information center, the transfer of a school 
district's affiliation from one regional management information 
center to another, and the approval of an alternative management 
information system shall include: 
    (a) The provisions of the plans adopted by the state board 
pursuant to section 121.931, subdivisions 3 and 4; 
    (b) The cost effectiveness of the proposed center, transfer 
or alternative; 
    (c) The effect of the proposed center, transfer or 
alternative on existing regional management information centers; 
and 
    (d) Whichever of the following is applicable: 
    (i) The ability of a proposed center to comply with section 
121.935, or the effect of a transfer on a center's ability to 
comply with section 121.935, or 
    (ii) The ability of a proposed alternative financial 
management information system to comply with section 121.936, 
subdivision 1, clauses (a) and (b) (1), or 
    (iii) The ability of a proposed alternative fixed assets 
property management information system to comply with sections 
section 121.936, subdivision 1, clause (b)(1), and 121.936, 
subdivision 1a, clause (a).  
    Sec. 31.  Minnesota Statutes 1990, section 122.41, is 
amended to read: 
    122.41 [POLICY DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 
SCHOOLS.] 
    The policy of the state is to encourage organization of 
school districts into units of administration to afford better 
educational opportunities for all pupils, make possible more 
economical and efficient operation of the schools, and insure 
more equitable distribution of public school revenue.  To this 
end all area of the state shall be included in an independent or 
special school district maintaining Each school district shall 
maintain classified elementary and secondary schools, grades 1 
through 12, unless a the district is exempt according to section 
122.34 or 122.355, has made an agreement with another district 
or districts as provided in sections 122.535, 122.541, or 
sections 122.241 to 122.248, or 122.93, subdivision 8, or has 
received a grant under sections 124.492 to 124.495.  A district 
that has an agreement according to sections 122.241 to 122.248 
or 122.541 shall operate a school with the number of grades 
required by those sections.  A district that has an agreement 
according to section 122.535 or 122.93, subdivision 8, or has 
received a grant under sections 124.492 to 124.495 shall operate 
a school for the grades not included in the agreement, but not 
fewer than three grades.  
    Sec. 32.  Minnesota Statutes 1990, section 122.541, 
subdivision 7, is amended to read: 
    Subd. 7.  [MEETING LOCATION.] Notwithstanding any law to 
the contrary, school boards that have an agreement may hold a 
valid joint meeting at any location that would be permissible 
for one of the school boards participating in the meeting.  A 
school board that has an agreement may hold a meeting in any 
district that is a party to the agreement.  The school board 
shall comply with section 471.705 and any other law applicable 
to a meeting of a school board. 
    Sec. 33.  [122.895] [EMPLOYEES OF COOPERATIVE DISTRICTS 
UPON DISSOLUTION OR WITHDRAWAL.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, "teacher" means a teacher as defined in section 125.12, 
subdivision 1, who is employed by a district or center listed in 
subdivision 2, except that it does not include a superintendent. 
"Cooperative" means any district or center to which this section 
applies. 
    Subd. 2.  [APPLICABILITY.] This section applies to: 
    (1) an education district organized according to sections 
122.91 to 122.95; 
    (2) a cooperative vocational center organized according to 
section 123.351; 
    (3) a joint powers district or board organized according to 
section 471.59 which employs teachers to provide instruction; 
    (4) a joint vocational technical district organized 
according to sections 136C.60 to 136C.69; 
    (5) an intermediate district organized according to chapter 
136D; and 
    (6) an educational cooperative service unit which employs 
teachers to provide instruction. 
    Subd. 3.  [NOTIFICATION OF TEACHERS.] In any year in which 
a cooperative dissolves or a member withdraws from a 
cooperative, the governing board of a cooperative shall provide 
all teachers employed by the cooperative written notification by 
March 10 of: 
    (1) the dissolution of the cooperative and the effective 
date of dissolution; or 
    (2) the withdrawal of a member of the cooperative and the 
effective date of withdrawal. 
    Subd. 4.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
IN A MEMBER DISTRICT UPON DISSOLUTION.] (a) This subdivision 
applies to a teacher previously employed in a member district 
who: 
    (1) had a continuing contract with that member district; 
    (2) has been continuously employed immediately after 
leaving that member district by one or more cooperatives that 
provided instruction to pupils enrolled in that member district; 
and 
    (3) is either a probationary teacher or has a continuing 
contract with the cooperative that is dissolving. 
    (b) A teacher may elect to resume the teacher's continuing 
contract with the member district by which the teacher was 
previously employed by filing a written notice of the election 
with the member school board on or before March 20.  Failure by 
a teacher to file a written notice by March 20 of the year the 
teacher receives a notice according to subdivision 3 constitutes 
a waiver of the teacher's rights under this subdivision. 
    The member district shall make reasonable realignments of 
positions to accommodate the seniority rights of a teacher 
electing to resume continuing contract rights in the member 
district according to this subdivision. 
    Upon returning the teacher shall receive credit for: 
    (1) all years of continuous service under contract with the 
cooperative and the member district for all purposes relating to 
seniority, compensation, and employment benefits; and 
    (2) the teacher's current educational attainment on the 
member district's salary schedule.  
    (c) A teacher who does not elect to return to the member 
district according to this subdivision may exercise rights under 
subdivision 5. 
    Subd. 5.  [RIGHTS OF OTHER TEACHERS UPON DISSOLUTION.] (a) 
This subdivision applies to a teacher who: 
    (1) has a continuing contract with the cooperative; and 
    (2) either did not have a continuing contract with any 
member district or does not return to a member district 
according to the procedures set forth in subdivision 4, 
paragraph (b). 
    (b) By May 10 of the school year in which the cooperative 
provides the notice required by subdivision 3, clause (1), the 
cooperative shall provide to each teacher described in 
subdivision 4 and this subdivision a written notice of available 
teaching positions in any member district to which the 
cooperative was providing services at the time of dissolution.  
Available teaching positions are all teaching positions that, 
during the school year following dissolution: 
    (1) are positions for which the teacher is licensed; and 
    (2) are not assigned to a continuing contract teacher 
employed by a member school district after any reasonable 
realignments which may be necessary under the applicable 
provisions of section 125.12, subdivision 6a or 6b, to 
accommodate the seniority rights of teachers employed by the 
member district. 
    (c) On or before June 1 of the school year in which the 
cooperative provides the notice required by subdivision 3, 
clause (1), any teacher wishing to do so must file with the 
school board a written notice of the teacher's intention to 
exercise the teacher's rights to an available teaching 
position.  Available teaching positions shall be offered to 
teachers in order of their seniority within the dissolved 
cooperative. 
    (d) Paragraph (e) applies to: 
    (1) a district that was a member of a dissolved 
cooperative; or 
    (2) any other district that, except as a result of open 
enrollment according to section 120.062, provides essentially 
the same instruction provided by the dissolved cooperative to 
pupils enrolled in a former member district. 
    (e) For five years following dissolution of a cooperative, 
a district to which this subdivision applies may not appoint a 
new teacher or assign a probationary or provisionally licensed 
teacher to any position requiring licensure in a field in which 
the dissolved cooperative provided instruction until the 
following conditions are met: 
    (1) a district to which this subdivision applies has 
provided each teacher formerly employed by the dissolved 
cooperative, who holds the requisite license, written notice of 
the position; and 
    (2) no teacher holding the requisite license has filed a 
written request to be appointed to the position with the school 
board within 30 days of receiving the notice. 
    If no teacher files a request according to clause (2), the 
district may fill the position as it sees fit.  During any part 
of the school year in which dissolution occurs and the first 
school year following dissolution, a teacher may file a request 
for an appointment according to this paragraph regardless of 
prior contractual commitments with other member districts.  
Available teaching positions shall be offered to teachers in 
order of their seniority on a combined seniority list of the 
teachers employed by the cooperative and the appointing district.
    (f) A teacher appointed according to this subdivision is 
not required to serve a probationary period.  The teacher shall 
receive credit on the appointing district's salary schedule for 
the teacher's years of continuous service under contract with 
the cooperative and the member district and the teacher's 
educational attainment at the time of appointment or shall 
receive a comparable salary, whichever is less.  The teacher 
shall receive credit for accumulations of sick leave and rights 
to severance benefits as if the teacher had been employed by the 
member district during the teacher's years of employment by the 
cooperative.  
    Subd. 6.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
IN A MEMBER DISTRICT UPON WITHDRAWAL OF THE DISTRICT.] (a) This 
subdivision applies to a teacher previously employed by a member 
district who: 
    (1) had a continuing contract with the member district 
which withdraws from a cooperative; 
    (2) has been continuously employed immediately after 
leaving that member district by one or more cooperatives that 
provided instruction to pupils enrolled in that member district; 
and 
    (3) is either a probationary teacher or has a continuing 
contract with the cooperative from which the member district is 
withdrawing. 
    (b) A teacher may elect to resume the teacher's continuing 
contract with the withdrawing district by which the teacher was 
previously employed by filing a written notice of the election 
with the withdrawing school board on or before March 20.  
Failure by a teacher to file written notice by March 20 of the 
year the teacher receives a notice according to subdivision 3 
constitutes a waiver of a teacher's rights under this 
subdivision. 
    The member district shall make reasonable realignments of 
positions to accommodate the seniority rights of a teacher 
electing to resume continuing contract rights in the member 
district according to this subdivision. 
    Upon returning, the teacher shall receive credit for: 
    (1) all years of continuous service under contract with the 
cooperative and the member district for all purposes relating to 
seniority, compensation, and employment benefits; and 
    (2) the teacher's current educational attainment on the 
member district's salary schedule. 
    Subd. 7.  [RIGHTS OF A TEACHER PLACED ON UNREQUESTED LEAVE 
UPON WITHDRAWAL.] (a) This subdivision applies to a teacher who 
is placed on unrequested leave of absence, according to section 
125.12, subdivision 6a or 6b, in the year in which the 
cooperative provides the notice required by subdivision 3, 
clause (2), by a cooperative from which a member district is 
withdrawing. 
    This subdivision applies to a district that, except as a 
result of open enrollment according to section 120.062, provides 
essentially the same instruction provided by the cooperative to 
pupils enrolled in the withdrawing district. 
    (b) A teacher shall be appointed by a district to which 
this subdivision applies to an available teaching position which:
    (1) is in a field of licensure in which pupils enrolled in 
the withdrawing district received instruction from the 
cooperative; and 
    (2) is within the teacher's field of licensure. 
    For the purpose of this paragraph, an available teaching 
position means any position that is vacant or would otherwise be 
occupied by a probationary or provisionally licensed teacher. 
    (c) A board may not appoint a new teacher to an available 
teaching position unless no teacher holding the requisite 
license on unrequested leave from the cooperative has filed a 
written request for appointment.  The request shall be filed 
with the board of the appointing district within 30 days of 
receiving written notice from the appointing board that it has 
an available teaching position.  If no teacher holding the 
requisite license files a request according to this paragraph, 
the district may fill the position as it sees fit.  Available 
teaching positions shall be offered to teachers in order of 
their seniority on a combined seniority list of the teachers 
employed by the cooperative and the withdrawing member district. 
    (d) A teacher appointed according to this subdivision is 
not required to serve a probationary period.  The teacher shall 
receive credit on the appointing district's salary schedule for 
the teacher's years of continuous service under contract with 
the cooperative and the member district and the teacher's 
educational attainment at the time of appointment or shall 
receive a comparable salary, whichever is less.  The teacher 
shall receive credit for accumulations of sick leave and rights 
to severance benefits as if the teacher had been employed by the 
member district during the teacher's years of employment by the 
cooperative. 
    Subd. 8.  [NONLICENSED EMPLOYEES UPON DISSOLUTION.] A 
nonlicensed employee who is terminated by a cooperative that 
dissolves shall be appointed by a district that is a member of 
the dissolved cooperative to a position that is created within 
12 months of the dissolution of the cooperative and is created 
as a result of the dissolution of the cooperative.  A position 
shall be offered to a nonlicensed employee, who fulfills the 
qualifications for that position, in order of the employee's 
seniority within the dissolved cooperative. 
    Subd. 9.  [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] A 
nonlicensed employee of a cooperative whose position is 
discontinued as a result of the withdrawal of a member district 
from the cooperative shall be appointed by the withdrawing 
member district to a position that is created within 12 months 
of the withdrawal and is created as a result of the withdrawal 
of the member district.  A position shall be offered to a 
nonlicensed employee, who fulfills the qualifications for that 
position, in order of the employee's seniority within the 
cooperative from which a member district withdraws. 
    Sec. 34.  Minnesota Statutes 1990, section 123.34, 
subdivision 9, is amended to read: 
    Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
classified secondary school shall employ a superintendent who 
shall be an ex officio nonvoting member of the school board.  
The authority for selection and employment of a superintendent 
shall be vested in the school board in all cases.  An individual 
employed by a school board as a superintendent shall have an 
initial employment contract for a period of time no longer than 
four three years from the date of employment.  The initial 
employment contract must terminate on June 30 of an odd-numbered 
year.  Any subsequent employment contract between a school board 
and the same individual to serve as a superintendent may not 
extend beyond June 30 of the next odd-numbered year.  Any 
subsequent employment contract must not exceed a period of three 
years.  A school board, at its discretion, may or may not renew, 
at its discretion, an initial employment contract or a 
subsequent employment contract.  A school board may terminate a 
superintendent during the term of an employment contract for any 
of the grounds specified in section 125.12, subdivision 6 or 8.  
A superintendent shall not rely upon an employment contract with 
a school board to assert any other continuing contract rights in 
the position of superintendent under section 125.12.  
Notwithstanding the provisions of sections 122.532, 122.541, 
125.12, subdivision 6a or 6b, or any other law to the contrary, 
no individual shall have a right to employment as a 
superintendent based on seniority or order of employment in any 
district.  If two or more school districts enter into an 
agreement for the purchase or sharing of the services of a 
superintendent, the contracting districts have the absolute 
right to select one of the individuals employed to serve as 
superintendent in one of the contracting districts and no 
individual has a right to employment as the superintendent to 
provide all or part of the services based on seniority or order 
of employment in a contracting district.  An individual who 
holds a position as superintendent in one of the contracting 
districts, but is not selected to perform the services, may be 
placed on unrequested leave of absence or may be reassigned to 
another available position in the district for which the 
individual is licensed.  The superintendent of a district shall 
perform the following:  
    (1) visit and supervise the schools in the district, report 
and make recommendations about their condition when advisable or 
on request by the board; 
    (2) recommend to the board employment and dismissal of 
teachers; 
    (3) superintend school grading practices and examinations 
for promotions; 
    (4) make reports required by the commissioner of education; 
and 
    (5) perform other duties prescribed by the board. 
    Sec. 35.  Minnesota Statutes 1990, section 123.34, 
subdivision 10, is amended to read: 
    Subd. 10.  [PRINCIPALS.] Each public school building , as 
defined by section 120.05, subdivision 2, clauses (1), (2) and 
(3), in an independent school district shall be under the 
supervision of a principal who is assigned to that 
responsibility by the board of education in that school district 
upon the recommendation of the superintendent of schools of that 
school district.  If pupils in kindergarten through grade 12 
attend school in one building, one principal may supervise the 
building. 
    Each principal assigned the responsibility for the 
supervision of a school building shall hold a valid 
certification license in the assigned position of supervision 
and administration as established by the rules of the state 
board of education. 
    The principal shall provide administrative, supervisory, 
and instructional leadership services, under the supervision of 
the superintendent of schools of the school district and in 
accordance with the policies, rules, and regulations of the 
board of education, for the planning, management, operation, and 
evaluation of the education program of the building or buildings 
to which the principal is assigned. 
    Sec. 36.  Minnesota Statutes 1990, section 123.35, is 
amended by adding a subdivision to read: 
    Subd. 20.  [LEGAL COUNSEL; REIMBURSEMENT.] If reimbursement 
is requested by a school district employee, the board may, after 
consulting with its legal counsel, reimburse the employee for 
any costs and reasonable attorney fees incurred by the person to 
defend criminal charges brought against the person arising out 
of the performance of duties for the school district.  A board 
member who is a witness or an alleged victim in the case may not 
vote on the reimbursement.  If a quorum of the board is 
disqualified from voting on the reimbursement, the reimbursement 
shall be approved by a judge of the district court. 
     Sec. 37.  Minnesota Statutes 1990, section 123.3514, 
subdivision 4, is amended to read: 
    Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
any other law to the contrary, an 11th or 12th grade pupil, 
except a foreign exchange pupil enrolled in a district under a 
cultural exchange program, may apply to an eligible institution, 
as defined in subdivision 3, to enroll in nonsectarian courses 
offered at that post-secondary institution.  If an institution 
accepts a secondary pupil for enrollment under this section, the 
institution shall send written notice to the pupil, the pupil's 
school district, and the commissioner of education within ten 
days of acceptance.  The notice shall indicate the course and 
hours of enrollment of that pupil.  If the pupil enrolls in a 
course for post-secondary credit, the institution shall notify 
the pupil about payment in the customary manner used by the 
institution. 
    Sec. 38.  Minnesota Statutes 1990, section 123.3514, 
subdivision 6, is amended to read: 
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] At the end of each 
school year, the department of education shall pay the tuition 
reimbursement amount within 30 days to the post-secondary 
institutions for courses that were taken for secondary credit.  
The amount of tuition reimbursement shall equal the lesser of: 
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course taken by the secondary 
pupil; or 
    (2) an amount equal to the difference between the basic 
revenue of the district for that pupil and an amount computed by 
multiplying the basic revenue of the district for that pupil by 
a ratio.  The ratio to be used is the total number of hours that 
the pupil is enrolled in courses in the secondary school during 
the regular school year over the total number of secondary 
instructional hours per pupil in that pupil's resident district. 
    The amount paid for each pupil shall be subtracted from the 
general education aid paid to the pupil's district of 
attendance.  If the amount to be subtracted is greater than the 
amount of general education aid due the district, the excess 
reduction shall be made from other state aids due to the 
district.  For fiscal year 1992, for a pupil attending a 
post-secondary institution under this section, whether the pupil 
is enrolled in the post-secondary institution for secondary 
credit, post-secondary credit, or a combination of both, a 
school district shall receive aid equal to the sum of: 
    (1) 12 percent of the formula allowance, according to 
section 124.22, subdivision 2, times 1.3; plus 
    (2) for a pupil who attends a secondary school part time, 
the formula allowance, according to section 124.22, subdivision 
2, times 1.3, times the ratio of the total number of hours the 
pupil is in membership for courses taken by the pupil for 
credit, to 1020 hours. 
If a pupil is enrolled in a course for post-secondary credit, 
the school district shall include the pupil in the average daily 
membership only for the portion of time during which the pupil 
is enrolled in courses at the secondary school and enrolled in 
courses at a post-secondary institution for secondary credit. 
    The department shall not pay any tuition reimbursement or 
other costs of a course taken for post-secondary credit only.  
     For fiscal year 1993 and thereafter, a post-secondary 
institution shall be reimbursed according to the following: 
     (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
    (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance, 
multiplied by 1.3, and divided by 30. 
    For fiscal year 1993 and thereafter, a school district 
shall receive: 
    (1) for a pupil who is not enrolled in classes at a 
secondary school, 12 percent of the formula allowance, according 
to section 124.22, subdivision 2, times 1.3; or 
     (2) for a pupil who attends a secondary school part time, 
88 percent of the product of the formula allowance, according to 
section 124.22, subdivision 2, times 1.3, times the ratio of the 
total number of hours the pupil is in membership for courses 
taken by the pupil for credit, to 1020 hours. 
    Sec. 39.  Minnesota Statutes 1990, section 123.3514, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
At the end of each school year, the department of education 
shall pay the tuition reimbursement amount to the post-secondary 
institutions for courses taken to fulfill high school graduation 
requirements by pupils eligible for adult high school graduation 
aid.  The amount of the tuition reimbursement equals the lesser 
of:  
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course or program taken by the 
pupil; or 
    (2) an amount equal to the difference between the adult 
high school graduation aid attributable to that pupil and an 
amount computed by multiplying the adult high school graduation 
aid by the ratio of the total number of hours that the pupil is 
enrolled in courses in the secondary school during the regular 
school year over the total number of secondary instructional 
hours per pupil in that pupil's resident district.  
    The amount of tuition reimbursement paid for each pupil 
shall be subtracted from the adult high school graduation aid 
paid to the pupil's district of attendance.  For fiscal year 
1992, for a pupil attending a post-secondary institution under 
this section, whether the pupil is enrolled in the 
post-secondary institution for secondary credit, post-secondary 
credit, or a combination of both, a school district shall 
receive aid equal to the sum of: 
    (1) 12 percent of the formula allowance, according to 
section 124.22, subdivision 2, times 1.3; plus 
    (2) for a pupil who attends a secondary school part time, 
the adult high school graduation aid times 1.3, times the ratio 
of the total number of hours the pupil is in membership for 
courses taken by the pupil for credit, to 1020 hours. 
If a pupil is enrolled in a course for post-secondary credit, 
the school district shall include the pupil in average daily 
membership as computed under section 120.17, subdivision 1, only 
for the portion of time during which the pupil is enrolled in 
courses at the secondary school and enrolled in courses at the 
post-secondary institution for secondary credit.  
    The department must not pay any tuition reimbursement or 
other costs of a course taken for post-secondary credit only. 
     For fiscal year 1993 and thereafter, a post-secondary 
institution shall be reimbursed according to the following: 
    (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
     (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance 
multiplied by 1.3, and divided by 30. 
     For fiscal year 1993 and thereafter, a school district 
shall receive: 
     (1) for a pupil who is not enrolled in classes at a 
secondary program, 12 percent of the adult high school 
graduation aid, times 1.3; or 
     (2) for a pupil who attends classes at a secondary program 
part time, 88 percent of the product of the adult high school 
graduation aid, times 1.3, times the ratio of the total number 
of hours the pupil is in membership for courses taken by the 
pupil for credit to 1020 hours. 
    Sec. 40.  Minnesota Statutes 1990, section 123.38, 
subdivision 2b, is amended to read: 
    Subd. 2b.  (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 
shall mean 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.  
    (b) Extracurricular activities have all of the following 
characteristics: 
    (a) (1) they are not offered for school credit nor required 
for graduation; 
    (b) (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; 
    (c) (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 or the technical colleges fund, if applicable, shall 
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, no such activity shall be 
participated in by the teachers or pupils in the district, nor 
shall the school name or any allied name be used in connection 
therewith, except by consent and direction of the board. 
    Sec. 41.  Minnesota Statutes 1990, section 123.744, is 
amended to read: 
    123.744 [SCHOOL BOARDS; STUDENT MEMBERS.] 
    The board of directors of any school district may shall 
appoint a student to serve as an advisory member to the school 
board or shall establish a youth advisory council to make formal 
and informal recommendations to the school board.  If a student 
advisory member is appointed to the board, the student shall 
serve as an advisory member to the board only while attending 
school in the district, and shall not receive any compensation 
or be reimbursed for any expenses incurred while serving in this 
capacity. 
    A student advisory member may shall be permitted to attend 
school board meetings, to be furnished with agenda materials, to 
introduce items for inclusion in the agenda, and to participate 
in discussion but shall not be entitled to vote. 
    If a youth advisory council is established, the board shall 
meet with council members at least three times per year to 
discuss education matters and board actions affecting the 
district student population.  
    Neither the student member nor youth advisory council 
members may participate in any closed discussion concerning the 
negotiation or implementation of a collective bargaining 
agreement and must not be present at a closed meeting permitted 
under section 471.705, subdivision 1a or 1d. 
     Sec. 42.  Minnesota Statutes 1990, section 124.17, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [FOREIGN EXCHANGE PUPILS.] Notwithstanding 
section 123.35, subdivision 8c, or any other law to the 
contrary, a foreign exchange pupil enrolled in a district under 
a cultural exchange program may be counted as a resident pupil 
for the purposes of chapters 124 and 124A and section 275.125 
even if the pupil has graduated from high school or the 
equivalent. 
    Sec. 43.  [124.248] [REVENUE FOR AN OUTCOME-BASED SCHOOL.] 
    Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
education revenue shall be paid to an outcome-based school as 
though it were a school district.  The general education revenue 
for each pupil unit is the state average general education 
revenue per pupil unit, calculated without compensatory revenue, 
plus compensatory revenue as though the school were a school 
district. 
    Subd. 2.  [CAPITAL EXPENDITURE EQUIPMENT REVENUE.] Capital 
expenditure equipment aid shall be paid to an outcome-based 
school according to section 124.245, subdivision 6, as though it 
were a school district.  Capital expenditure equipment aid shall 
equal capital expenditure equipment revenue.  Notwithstanding 
section 124.244, subdivision 4, an outcome-based school may use 
the revenue for any purpose related to the school. 
    Subd. 3.  [SPECIAL EDUCATION AID.] Special education aid 
shall be paid to an outcome-based school according to section 
124.32 as though it were a school district.  The school may 
charge tuition to the district of residence as provided in 
section 120.17, subdivision 4.  The district of residence shall 
levy as provided in section 275.125, subdivision 8c, as though 
it were participating in a cooperative. 
    Subd. 4.  [OTHER AID, GRANTS, REVENUE.] An outcome-based 
school is eligible to receive other aids, grants, and revenue 
according to chapters 120 to 129, as though it were a school 
district.  However, it may not receive aid, a grant, or revenue 
if a levy is required to obtain the money, except as otherwise 
provided in this section.  Federal aid received by the state 
must be paid to the school, if it qualifies for the aid as 
though it were a school district. 
    Subd. 5.  [USE OF STATE MONEY.] Money received from the 
state may not be used to purchase land or buildings.  The school 
may own land and buildings if obtained through nonstate sources. 
    Sec. 44.  Minnesota Statutes 1990, section 125.09, 
subdivision 4, is amended to read: 
    Subd. 4.  [MANDATORY REPORTING.] A school board shall 
report to the board of teaching, the state board of education, 
or the state board of technical colleges, 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 125.17, subdivisions 4, 
clauses (1), (2), and (3), and 5, or after charges are filed 
that are ground for discharge under section 125.12, subdivision 
8, clauses (a), (b), (c), (d), and (e), or when a teacher is 
suspended or resigns while an investigation is pending under 
section 125.12, subdivision 8, clauses (a), (b), (c), (d), and 
(e); 125.17, subdivisions 4, clauses (1), (2), and (3), and 5; 
or 626.556.  The report must be made to the board within ten 
days after the discharge, suspension, or resignation has 
occurred.  The board to which the report is made shall 
investigate the report for violation of subdivision 1 and the 
reporting school board shall 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 school board or 
school superintendent shall provide the licensing board with 
information about the teacher from the school 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 school board or school 
superintendent may, at the discretion of the school 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 school district.  Any data transmitted to 
any board under this section shall be 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 board to which a report is made shall 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. 45.  Minnesota Statutes 1990, section 125.12, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROBATIONARY PERIOD.] The first three 
consecutive years of a teacher's first teaching experience in 
Minnesota in a single school district shall be deemed to be a 
probationary period of employment, and after completion thereof, 
the probationary period in each school district in which the 
teacher is thereafter employed shall be one year.  The school 
site management team, or the school board if there is no school 
site management team, shall adopt a plan for written evaluation 
of teachers during the probationary period according to 
subdivision 3a or 3b.  Effective July 1, 1988, Evaluation by the 
peer review committee charged with evaluating probationary 
teachers under subdivision 3a shall 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 shall 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, after consulting with the peer review 
committee charged with evaluating probationary teachers under 
subdivision 3a, shall see fit; provided, however, that the 
school board shall give any such teacher whose contract it 
declines to renew for the following school year written notice 
to that effect before June 1.  If the teacher requests reasons 
for any nonrenewal of a teaching contract, the school board 
shall 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 123.35, subdivision 5. 
    Sec. 46.  Minnesota Statutes 1990, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
school must have a peer review committee charged with evaluating 
each probationary teacher at least three times each year for a 
period of three years as required under subdivision 3.  The 
purpose of the evaluation procedure is to improve the 
probationary teacher's instructional effectiveness.  The school 
site management team, or the school board if there is no school 
site management team, after consulting with a representative of 
the peer review committee and the school principal or other 
person having general control and supervision of the school, 
shall adopt a procedure for written evaluations of probationary 
teachers.  The evaluation procedure must be structured as a 
continuing and cooperative process between the probationary 
teacher, the peer review committee, and the school principal or 
other person having general control and supervision of the 
school.  The school site management team, or the school board if 
there is no school site management team, shall make available a 
written description of the evaluation procedure, including 
evaluation policies and criteria, to each newly hired teacher 
and to each probationary teacher.  As part of the evaluation 
procedure, the school and the school district shall provide the 
necessary resources to assist a probationary teacher to improve 
those areas of instruction identified by the teacher, the peer 
review committee, or the principal or other person having 
general control and supervision of the school as in need of 
improvement.  The school and the school district also shall 
provide to each probationary teacher opportunities for 
professional growth experiences, including in-service training. 
    Sec. 47.  Minnesota Statutes 1990, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [APPLICABILITY.] Subdivision 3a does not apply 
to a school district that has formally adopted a probationary 
teacher review process that has been mutually agreed upon by the 
exclusive representative of the teachers in the district and the 
school board. 
    Sec. 48.  Minnesota Statutes 1990, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [PEER REVIEW FOR CONTINUING CONTRACT 
TEACHERS.] A school must have a peer review committee for 
continuing contract teachers to provide the teachers with the 
opportunity for positive interaction and professional growth to 
help students learn more effectively.  The peer review committee 
must not judge teacher competency nor determine whether to 
suspend or terminate a teacher.  Members of the peer review 
committee must be selected by the school site management team, 
or by the exclusive bargaining representative if there is no 
school site management team.  The selecting body shall establish 
an equitable process for selecting members of the peer review 
committee and an orderly cycle for rotating members.  Only 
teachers with continuing contracts shall serve as members of the 
peer review committee.  The peer review committee shall review 
once each school year each teacher with a continuing contract 
performing services on 120 or more school days.  The review 
process must allow experienced teachers to improve instructional 
effectiveness through professional learning and development 
opportunities that include exchanging and internalizing ideas 
about the components of competent teaching.  An in-service 
training session must be held at the beginning of each school 
year to train members of the peer review committee to facilitate 
teachers' reflections about the assumptions, beliefs, and 
practices underlying teaching.  The selecting body shall design 
the training sessions and give the members of the peer review 
committee the necessary time off from their classroom 
responsibilities to perform the duties listed in this 
subdivision. 
    Sec. 49.  [125.135] [STAFF EXCHANGE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A staff exchange program 
is established to allow local school districts to arrange 
temporary and voluntary exchanges among members of their 
kindergarten through grade 12 instructional and administrative 
staffs.  The purpose of the program is to provide participants 
with an understanding of the educational concerns of other local 
school districts, including concerns of class organization, 
curriculum development, instructional practices, and 
characteristics of the student population. 
    The educational needs and interests of the host school 
district and the training, experience, and interests of the 
participants must determine the assignments of the participants 
in the host district.  Participants may teach courses, provide 
counseling and tutorial services, work with teachers to better 
prepare students for future educational experiences, serve an 
underserved population in the district, or assist with 
administrative functions.  The assignments participants perform 
for the host district must be comparable to the assignments the 
participants perform for the district employing the 
participants.  Participation in the exchange program need not be 
limited to one school or one school district and may involve 
other education organizations including education districts and 
ECSUs. 
    Subd. 2.  [PROGRAM REQUIREMENTS.] All staff exchanges made 
under this section are subject to the requirements in this 
subdivision. 
    (a) A school district employing a participating staff 
member must not adversely affect the staff member's salary, 
seniority, or other employment benefits, or otherwise penalize 
the staff member for participating in the program. 
    (b) Upon completion or termination of an exchange, a school 
district employing a participating staff member must permit the 
staff member to return to the same assignment the staff member 
performed in the district before the exchange, if available, or, 
if not, a similar assignment. 
    (c) A school district employing a participating staff 
member must continue to provide the staff member's salary and 
other employment benefits during the period of the exchange. 
    (d) A participant must be licensed and tenured. 
    (e) Participation in the program must be voluntary. 
    (f) The length of participation in the program must be no 
less than one-half of a school year and no more than one school 
year, and any premature termination of participation must be 
upon the mutual agreement of the participant and the 
participating school district. 
    (g) A participant is responsible for transportation to and 
from the host school district. 
    (h) This subdivision does not abrogate or change rights of 
staff members participating in the staff exchange program or the 
terms of an agreement between the exclusive representative of 
the school district employees and the school district.  
    (i) Participating school districts may enter into 
supplementary agreements with the exclusive representative of 
the school district employees to accomplish the purpose of this 
section. 
    Subd. 3.  [APPLICATION PROCEDURES.] The school board of a 
school district must decide by resolution to participate in the 
staff exchange program.  A staff member wishing to participate 
in the exchange program must submit an application to the school 
district employing the staff member.  The district must, in a 
timely and appropriate manner, provide to the exclusive 
bargaining representatives of teachers in the state the number 
and names of prospective participants within the district, the 
assignments available within the district, and the length of 
time for each exchange.  The exclusive bargaining 
representatives are requested to cooperatively participate in 
the coordination of exchanges to facilitate exchanges across all 
geographical regions of the state.  Prospective participants 
must contact teachers and districts with whom they are 
interested in making an exchange.  The prospective participants 
must make all arrangements to accomplish their exchange and the 
superintendents of the participating districts must approve the 
arrangements for the exchange in writing. 
    Sec. 50.  [125.138] [FACULTY EXCHANGE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
exchange is established to allow school districts and 
post-secondary institutions to arrange temporary exchanges 
between members of their instructional staffs.  These 
arrangements must be made on a voluntary cooperative basis 
between a school district and post-secondary institution, or 
between post-secondary institutions.  Exchanges between 
post-secondary institutions may occur among campuses in the same 
system or in different systems. 
    Subd. 2.  [USES OF PROGRAM.] Each participating school 
district and post-secondary institution may determine the way in 
which the instructional staff member's time is to be used, but 
it must be in a way that promotes understanding of the needs of 
each educational system or institution.  For example, a public 
school teacher may teach courses, provide counseling and 
tutorial services, assist with the preparation of future 
teachers, or take professional development courses.  A 
post-secondary teacher might teach advanced placement courses or 
other classes to aid an underserved population at the school 
district, counsel students about future educational plans, or 
work with teachers to better prepare students for post-secondary 
education.  Participation need not be limited to one school or 
institution and may involve other groups including educational 
cooperative service units. 
    Subd. 3.  [SALARIES; BENEFITS; CERTIFICATION.] Exchanges 
made under the program must not have a negative effect on 
participants' salaries, seniority, or other benefits.  
Notwithstanding sections 123.35, subdivision 6, and 125.04, a 
member of the instructional staff of a post-secondary 
institution may teach in an elementary or secondary school or 
perform a service, agreed upon according to this section, for 
which a license would otherwise be required without holding the 
applicable license.  In addition, a licensed teacher employed by 
a school district may teach or perform a service, agreed upon 
according to this section, at a post-secondary institution 
without meeting the applicable qualifications of the 
post-secondary institution.  A school district is not subject to 
section 124.19, subdivision 3, as a result of entering into an 
agreement according to this section that enables a 
post-secondary instructional staff member to teach or provide 
services in the district.  All arrangements and details 
regarding the exchange must be mutually agreed to by each 
participating school district and post-secondary institution 
before implementation. 
    Sec. 51.  [125.1385] [EXCHANGES BETWEEN EDUCATION FACULTY.] 
    Subdivision 1.  [AUTHORITY; LIMITS.] The state university 
board and the board of regents of the University of Minnesota 
may develop programs to exchange faculty between colleges or 
schools of education and school districts, subject to section 
125.138. 
    The programs must be used to assist in improving teacher 
education by involving current teachers in education courses and 
placing post-secondary faculty in elementary and secondary 
classrooms.  Programs must include exchanges that extend beyond 
the immediate service area of the institution to address the 
needs of different types of schools, students, and teachers. 
    Subd. 2.  [COMPENSATION.] State money for faculty exchange 
programs is to compensate for expenses that are unavoidable and 
beyond the normal living expenses exchange participants would 
incur if they were not involved in this exchange.  The state 
university board, the board of regents, or the University of 
Minnesota, and their respective campuses, in conjunction with 
the participating school districts, must control costs for all 
participants as much as possible, through means such as 
arranging housing exchanges, providing campus housing, and 
providing university, state, or school district cars for 
transportation.  The boards and campuses may seek other sources 
of funding to supplement these appropriations, if necessary. 
    Sec. 52.  Minnesota Statutes 1990, section 125.17, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 
teachers in the public schools in cities of the first class 
during the first three years of consecutive employment shall be 
deemed to be in a probationary period of employment during which 
period any annual contract with any teacher may, or may not, be 
renewed as the school board, after consulting with the peer 
review committee charged with evaluating the probationary 
teachers under subdivision 2a or 2b, shall see fit.  The school 
site management team or the school board if there is no school 
site management team, shall adopt a plan for a written 
evaluation of teachers during the probationary period according 
to subdivision 2a.  Effective July 1, 1988, Evaluation by the 
peer review committee charged with evaluating probationary 
teachers under subdivision 2a shall 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 shall not be 
included in determining the number of school days on which a 
teacher performs services.  The school board may, during such 
probationary period, discharge or demote a teacher for any of 
the causes as specified in this code.  A written statement of 
the cause of such discharge or demotion shall be given to the 
teacher by the school board at least 30 days before such removal 
or demotion shall become effective, and the teacher so notified 
shall have no right of appeal therefrom. 
    Sec. 53.  Minnesota Statutes 1990, section 125.17, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
school must have a peer review committee charged with evaluating 
each probationary teacher at least three times each year for a 
period of three years as required under subdivision 3.  The 
purpose of the evaluation procedure is to improve the 
probationary teacher's instructional effectiveness.  The school 
site management team, or the school board if there is no school 
site management team, after consulting with a representative of 
the peer review committee and the school principal or other 
person having general control and supervision of the school, 
shall adopt a procedure for written evaluations of probationary 
teachers.  The evaluation procedure must be structured as a 
continuing and cooperative process between the probationary 
teacher, the peer review committee, and the school principal or 
other person having general control and supervision of the 
school.  The school site management team, or the school board if 
there is no school site management team, shall make available a 
written description of the evaluation procedure, including 
evaluation policies and criteria, to each newly hired teacher 
and to each probationary teacher.  As part of the evaluation 
procedure, the school and the school district shall provide the 
necessary resources to assist a probationary teacher to improve 
those areas of instruction identified by the teacher, the peer 
review committee, or the principal or other person having 
general control and supervision of the school as in need of 
improvement.  The school and the school district also shall 
provide to each probationary teacher opportunities for 
professional growth experiences, including in-service training. 
    Sec. 54.  Minnesota Statutes 1990, section 125.17, is 
amended by adding a subdivision to read: 
    Subd. 2b.  [APPLICABILITY.] Subdivision 2a does not apply 
to a school district that has formally adopted a probationary 
teacher review process that has been mutually agreed upon by the 
exclusive representative of the teachers in the district and the 
school board. 
    Sec. 55.  Minnesota Statutes 1990, section 125.17, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [PEER REVIEW FOR NONPROBATIONARY TEACHERS.] A 
peer review committee for nonprobationary teachers shall exist 
in each school to provide nonprobationary teachers with the 
opportunity for positive interaction and professional growth to 
help students learn more effectively.  The peer review committee 
must not judge teacher competency nor determine whether to 
discharge or demote a teacher.  Members of the peer review 
committee must be selected by the school site management team, 
or by the exclusive bargaining representative if there is no 
school site management team.  The selecting body shall establish 
an equitable process for selecting members of the peer review 
committee and an orderly cycle for rotating members.  Only 
nonprobationary teachers shall serve as members of the peer 
review committee.  The peer review committee shall review once 
each school year each nonprobationary teacher performing 
services on 120 or more school days.  The review process must 
allow experienced teachers to improve instructional 
effectiveness through professional learning and development 
opportunities that include exchanging and internalizing ideas 
about the components of competent teaching.  An in-service 
training session must be held at the beginning of each school 
year to train members of the peer review committee to facilitate 
teachers' reflections about the assumptions, beliefs, and 
practices underlying teaching.  The selecting body shall design 
the training session and give the members of the peer review 
committee the necessary time off from the classroom 
responsibilities to perform the duties listed in this 
subdivision. 
    Sec. 56.  [125.191] [LICENSE AND DEGREE EXEMPTION FOR HEAD 
COACH.] 
    Notwithstanding section 125.03, subdivision 1, a school 
district may employ as a head varsity coach of an 
interscholastic sport at its secondary school a person who does 
not have a license as head varsity coach of interscholastic 
sports and who does not have a bachelor's degree if: 
    (1) in the judgment of the school board, the person has the 
knowledge and experience necessary to coach the sport; 
    (2) the position has been posted as a vacancy within the 
present teaching staff for a period of 30 days and no licensed 
coaches have applied for the position; 
    (3) the person can verify completion of six quarter 
credits, or the equivalent, or 60 clock hours of instruction in 
first aid and the care and prevention of athletic injuries; and 
    (4) the person can verify completion of a coaching methods 
or theory course. 
    Notwithstanding section 125.121, a person employed as a 
head varsity coach under this section has an annual contract as 
a coach that the school board may or may not renew as the board 
sees fit, after annually posting the position as required in 
clause (2) and no licensed coach has applied for the position. 
    Sec. 57.  Minnesota Statutes, section 126.12, subdivision 
1, is amended to read: 
    Subdivision 1.  Except for learning programs during summer 
and for, flexible school learning year programs authorized 
pursuant to under sections 120.59 to 120.67, and learning year 
programs under section 121.585, a school district shall not 
commence an elementary or secondary school year prior to Labor 
Day.  Days which are devoted to teachers' workshops may be held 
before Labor Day.  Districts that enter into cooperative 
agreements are encouraged to adopt similar school calendars. 
    Sec. 58.  Minnesota Statutes 1990, section 126.266, 
subdivision 2, is amended to read: 
    Subd. 2.  A teacher serving under an exemption as provided 
in subdivision 1 shall be granted a license as soon as that 
teacher qualifies for it.  Not more than one year of service by 
a teacher under an exemption shall be credited to the teacher 
for the purposes of section 125.12, and not more than two years 
shall be credited to the teacher for purposes of section 125.17; 
and the one or two years shall be deemed to precede immediately 
and be consecutive with the year in which the teacher becomes 
licensed.  For purposes of section 125.17, a teacher shall 
receive credit equal to the number of years the teacher served 
under an exemption. 
    Sec. 59.  Minnesota Statutes 1990, section 128C.01, is 
amended by adding a subdivision to read: 
    Subd. 5.  [CERTAIN COMMERCIAL RELATIONSHIPS 
PROHIBITED.] The board may not enter into corporate partnerships 
or similar agreements with any business or commercial 
organization that sells products or services used by student or 
adult participants in league activities while they participate 
in activities regulated by the league.  The board may sell 
advertising to any such business or organization if the 
advertising is clearly identified as advertising paid for by the 
business or commercial organization. 
    Sec. 60.  [171.3215] [CANCELING A SCHOOL BUS DRIVER'S 
ENDORSEMENT FOR CRIMES AGAINST MINORS.] 
    Subdivision 1.  [DEFINITIONS.] As used in this section, the 
following terms have the meanings given them. 
    (1) "School bus driver" means a person possessing a school 
bus driver's endorsement on a valid Minnesota driver's license 
or a person possessing a valid Minnesota driver's license who 
drives a vehicle with a seating capacity of ten or less persons 
used as a school bus. 
    (2) "Crime against a minor" means an act committed against 
a minor victim that constitutes a violation of section 609.185, 
609.19, 609.195, 609.20, 609.205, 609.21, subdivision 1, 
609.221, 609.222, 609.223, 609.342, 609.343, 609.344, 609.345, 
609.352, or a felony violation of section 609.322, 609.323, 
609.324, or 609.377. 
    Subd. 2.  [CANCELLATION.] The commissioner within 10 days 
of receiving notice under section 631.40, subdivision 1a, that a 
school bus driver has committed a crime against a minor shall 
permanently cancel the school bus driver's endorsement on the 
offender's driver's license.  Upon canceling the offender's 
school bus driver's endorsement, the department 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. 
    Subd. 3.  [BACKGROUND CHECK.] Before issuing or renewing a 
driver's license with a school bus driver's endorsement, the 
department shall conduct an investigation to determine whether 
the applicant has been convicted of committing a crime against a 
minor.  The department shall not issue a new bus driver's 
endorsement and shall not renew an existing bus driver's 
endorsement if the applicant has been convicted of committing a 
crime against a minor. 
    Sec. 61.  Minnesota Statutes 1990, section 203B.085, is 
amended to read: 
    203B.085 [COUNTY AUDITOR'S OFFICE TO REMAIN OPEN DURING 
CERTAIN HOURS PRECEDING ELECTION.] 
    The county auditor's office in each county must be open for 
acceptance of absentee ballot applications and casting of 
absentee ballots between the hours of 1:00 to 3:00 p.m. on 
Saturday and 5:00 to 7:00 p.m. on Monday immediately preceding a 
primary or general election.  The school district clerk, when 
performing the county auditor's election duties, need not comply 
with this section. 
    Sec. 62.  Minnesota Statutes 1990, section 214.10, is 
amended by adding a subdivision to read: 
    Subd. 9.  [ACTS AGAINST MINORS.] (a) As used in this 
subdivision, the following terms have the meanings given them. 
    (1) "Licensed person" means a person who is licensed under 
this chapter by the board of nursing, the board of psychology, 
the social work licensing board, the board of marriage and 
family therapy, the board of unlicensed mental health service 
providers, or the board of teaching. 
    (2) "Crime against a minor" means conduct that constitutes 
a violation of section 609.185, 609.19, 609.195, 609.20, 
609.205, 609.21, 609.215, 609.221, 609.222, 609.223, 609.342, 
609.343, 609.345, or a felony violation of section 609.377. 
    (b) In any license revocation proceeding, there is a 
rebuttable presumption that a licensed person who is convicted 
in a court of competent jurisdiction of committing a crime 
against a minor is unfit to practice the profession or 
occupation for which that person is licensed. 
    Sec. 63.  Minnesota Statutes 1990, section 245A.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 
245A.16 do not apply to: 
    (1) residential or nonresidential programs that are 
provided to a person by an individual who is related; 
    (2) nonresidential programs that are provided by an 
unrelated individual to persons from a single related family; 
    (3) residential or nonresidential programs that are 
provided to adults who do not abuse chemicals or who do not have 
a chemical dependency, a mental illness, mental retardation or a 
related condition, a functional impairment, or a physical 
handicap; 
    (4) sheltered workshops or work activity programs that are 
certified by the commissioner of jobs and training; 
    (5) programs for children enrolled in kindergarten to the 
12th grade and prekindergarten regular and special education 
programs that are operated by the commissioner of education or a 
school as defined in section 120.101, subdivision 4; 
    (6) nonresidential programs for children that provide care 
or supervision for periods of less than three hours a day while 
the child's parent or legal guardian is in the same building or 
present on property that is contiguous with the physical 
facility where the nonresidential program is provided; 
    (7) nursing homes or hospitals licensed by the commissioner 
of health except as specified under section 245A.02; 
    (8) board and lodge facilities licensed by the commissioner 
of health that provide services for five or more persons whose 
primary diagnosis is mental illness who have refused an 
appropriate residential program offered by a county agency.  
This exclusion expires on July 1, 1990; 
      (9) homes providing programs for persons placed there by a 
licensed agency for legal adoption, unless the adoption is not 
completed within two years; 
      (10) programs licensed by the commissioner of corrections; 
      (11) recreation programs for children or adults that 
operate for fewer than 40 calendar days in a calendar year; 
    (12) programs whose primary purpose is to provide social or 
recreational activities, for adults or school-age children, 
including children who will be eligible to enter kindergarten 
within not more than four months, social and recreational 
activities, such as scouting, boys clubs, girls clubs, sports, 
or the arts; except that a program operating in a school 
building is not excluded unless it is approved by the district's 
school board; 
      (13) head start nonresidential programs which operate for 
less than 31 days in each calendar year; 
      (14) noncertified boarding care homes unless they provide 
services for five or more persons whose primary diagnosis is 
mental illness or mental retardation; 
      (15) nonresidential programs for nonhandicapped children 
provided for a cumulative total of less than 30 days in any 
12-month period; 
      (16) residential programs for persons with mental illness, 
that are located in hospitals, until the commissioner adopts 
appropriate rules; 
     (17) the religious instruction of school-age children; 
Sabbath or Sunday schools; or the congregate care of children by 
a church, congregation, or religious society during the period 
used by the church, congregation, or religious society for its 
regular worship; 
     (18) camps licensed by the commissioner of health under 
Minnesota Rules, chapter 4630; 
     (19) mental health outpatient services for adults with 
mental illness or children with emotional disturbance; or 
     (20) residential programs serving school-age children whose 
sole purpose is cultural or educational exchange, until the 
commissioner adopts appropriate rules. 
    For purposes of clause (5), the department of education, 
after consulting with the department of human services, shall 
adopt standards applicable to preschool programs administered by 
public schools that are similar to Minnesota rules, parts 
9503.005 to 9503.0175.  These standards are exempt from 
rulemaking under chapter 14. 
    Sec. 64.  Minnesota Statutes 1990, section 275.065, 
subdivision 3, is amended to read: 
    Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
county auditor shall prepare and the county treasurer shall 
deliver on or before November 10 each year, by first class mail 
to each taxpayer at the address listed on the county's current 
year's assessment roll, a notice of proposed property taxes and, 
in the case of a town, final property taxes.  
    (b) The commissioner of revenue shall prescribe the form of 
the notice. 
    (c) The notice must inform taxpayers that it contains the 
amount of property taxes each taxing authority other than a town 
proposes to collect for taxes payable the following year as 
required in paragraph (d) or (e) and, for a town, the amount of 
its final levy.  It must clearly state that each taxing 
authority, other than a town or special taxing district, will 
hold a public meeting to receive public testimony on the 
proposed budget and proposed or final property tax levy, or, in 
case of a school district, on the current budget and proposed 
property tax levy.  It must clearly state the time and place of 
each taxing authority's meeting and an address where comments 
will be received by mail.  It must state the time and place for 
the continuation of the hearing if the hearing is not completed 
on the original date.  
    (d) Except as provided in paragraph (e), for taxes levied 
in 1990 and 1991, the notice must state by county, city or town, 
and school district:  
     (1) the total proposed or, for a town, final property tax 
levy for taxes payable the following year after reduction for 
state aid; 
     (2) the percentage increase or decrease from the actual 
property tax levy for taxes payable in the current year; and 
     (3) for counties, cities, and towns, the increase or 
decrease in population from the second previous calendar year to 
the immediately prior calendar year, and for school districts, 
the increase or decrease in the number of pupils in average 
daily membership from the second previous school year to the 
immediately prior school year as determined by the commissioner 
of education.  The data used to determine the increase or 
decrease in population under this clause must be the data used 
for purposes of the population adjustment to the levy limit base 
of the county, city, or town under section 275.51, subdivision 6.
     For purposes of this paragraph, "proposed property taxes 
after reduction for state aid" means the taxing authority's levy 
certified under section 275.07, subdivision 1.  
     (e) In the case of a county containing a city of the first 
class, or taxing authority lying wholly within a county or 
counties containing a city of the first class, for taxes levied 
in 1991, and thereafter, and for all counties for taxes levied 
in 1992 and thereafter, the notice must state for each parcel: 
     (1) the market value of the property as defined under 
section 272.03, subdivision 8, for property taxes payable in the 
following year and for taxes payable the current year; 
     (2) by county, city or town, school district, the sum of 
the special taxing districts, and as a total of the taxing 
authorities, including special taxing districts, the proposed 
or, for a town, final net tax on the property for taxes payable 
the following year and the actual tax for taxes payable the 
current year; and 
     (3) the increase or decrease in the amounts in clause (2) 
from taxes payable in the current year to proposed or, for a 
town, final taxes payable the following year, expressed as a 
dollar amount and as a percentage. 
     (f) The notice must clearly state that the proposed or 
final taxes do not include the following: 
     (1) special assessments; 
     (2) levies approved by the voters after the date the 
proposed taxes are certified, including bond referenda, school 
district levy referenda, and levy limit increase referenda; 
     (3) amounts necessary to pay cleanup or other costs due to 
a natural disaster occurring after the date the proposed taxes 
are certified; and 
     (4) amounts necessary to pay tort judgments against the 
taxing authority that become final after the date the proposed 
taxes are certified. 
    Sec. 65.  Minnesota Statutes 1990, section 275.065, 
subdivision 5a, is amended to read: 
    Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) A city, county, or 
school district shall advertise in a newspaper a notice of its 
intent to adopt a budget and property tax levy or, in the case 
of a school district, a property tax levy, to review its current 
budget and proposed property taxes payable the following year at 
a public hearing.  The notice must be published not less than 
two days nor more than six days before the hearing. 
    The advertisement must be at least one-eighth page in size 
of a standard-size or a tabloid-size newspaper, and the 
headlines in the advertisement stating the notice of proposed 
property taxes and the notice of public hearing must be in a 
type no smaller than 24-point.  The text of the advertisement 
must be no smaller than 18-point, except that the property tax 
amounts and percentages may be in 14-point type.  The 
advertisement must not be placed in the part of the newspaper 
where legal notices and classified advertisements appear.  The 
advertisement must be published in an official newspaper of 
general circulation in the taxing authority.  The newspaper 
selected must be one of general interest and readership in the 
community, and not one of limited subject matter.  The 
advertisement must appear in a newspaper that is published at 
least once per week.  
    (b) The advertisement must be in the following form, except 
that the notice for a school district must not may include 
references to the current budget hearings or to adoption of a 
budget: in regard to proposed property taxes. 

                               "NOTICE OF

                         PROPOSED PROPERTY TAXES

               (City/County/School District) of .........
The governing body of ........ will soon hold budget hearings 
and vote on the property taxes for (city/county services that 
will be provided in 199_/school district services that will be 
provided in 199_ and 199_). 
The property tax amounts below compare current 
(city/county/school district) property taxes and the property 
taxes that would be collected in 199_ if the budget now being 
considered is approved. 
199_                Proposed 199_       199_ Increase
Property Taxes      Property Taxes      or Decrease

$........           $........              .....%


                        NOTICE OF PUBLIC HEARING:
All concerned citizens are invited to attend a public hearing 
and express their opinions on the proposed (city/county/school 
district) budget and property taxes, or in the case of a school 
district, its current budget and proposed property taxes, 
payable the following year.  The hearing will be held on 
(Month/Day/Year) at (Time) at (Location, Address). 
A continuation of the hearing, if necessary, will be held on 
(Month/Day/Year) at (Time) at (Location, Address). 
Written comments may be directed to (Address)." 
    Sec. 66.  Minnesota Statutes 1990, section 275.065, 
subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 15 and December 20, the governing bodies of the 
city and county shall each hold a public hearing to adopt its 
final budget and property tax levy for taxes payable in the 
following year, and the governing body of the school district 
shall hold a public hearing to review its current budget and 
adopt its property tax levy for taxes payable in the following 
year.  
    At the hearing, the taxing authority, other than a school 
district, may amend the proposed budget and property tax levy 
and must adopt a final budget and property tax levy, and the 
school district may amend the proposed property tax levy and 
must adopt a final property tax levy.  
    The property tax levy certified under section 275.07 by a 
city, county, or school district must not exceed the proposed 
levy determined under subdivision 1, except by an amount up to 
the sum of the following amounts: 
    (1) the amount of a school district levy whose voters 
approved a referendum to increase taxes under section 124A.03, 
subdivision 2, or 124.82, subdivision 3, after the proposed levy 
was certified; 
    (2) the amount of a city or county levy approved by the 
voters under section 275.58 after the proposed levy was 
certified; 
    (3) the amount of a levy to pay principal and interest on 
bonds issued or approved by the voters under section 475.58 
after the proposed levy was certified; 
     (4) the amount of a levy to pay costs due to a natural 
disaster occurring after the proposed levy was certified, if 
that amount is approved by the commissioner of revenue under 
subdivision 6a; 
     (5) the amount of a levy to pay tort judgments against a 
taxing authority that become final after the proposed levy was 
certified, if the amount is approved by the commissioner of 
revenue under subdivision 6a; and 
      (6) the amount of an increase in levy limits certified to 
the taxing authority by the commissioner of revenue or the 
commissioner of education after the proposed levy was certified. 
     At the hearing the percentage increase in property taxes 
proposed by the taxing authority, if any, and the specific 
purposes for which property tax revenues are being increased 
must be discussed.  During the discussion, the governing body 
shall hear comments regarding a proposed increase and explain 
the reasons for the proposed increase.  The public shall be 
allowed to speak and to ask questions prior to adoption of any 
measures by the governing body.  The governing body, other than 
the governing body school districts, shall adopt its final 
property tax levy prior to adopting its final budget. 
     The hearing must be held after 5:00 p.m. if scheduled on a 
day other than Saturday.  No hearing may be held on a Sunday.  
The county auditor shall provide for the coordination of hearing 
dates for all taxing authorities within the county. 
     By August 1, the county auditor shall notify the clerk of 
each school district within the county of the dates that the 
county board has designated for its hearing and any continuation 
under subdivision 3.  By August 15, each school board shall 
certify to the county auditors of the counties in which the 
school district is located the dates on which it elects to hold 
its hearings and any continuations under subdivision 3.  If a 
school board does not certify the dates by August 15, the 
auditor will assign the hearing date.  The dates elected or 
assigned must not conflict with the county hearing dates.  By 
August 20, the county auditor shall notify the clerks of the 
cities within the county of the dates on which the county and 
school districts have elected to hold their hearings.  At the 
time a city certifies its proposed levy under subdivision 1 it 
shall certify the dates on which it elects to hold its hearings 
and any continuations under subdivision 3.  The city must not 
select dates that conflict with those elected by or assigned to 
the counties and school districts in which the city is located.  
     The hearing dates so elected or assigned must be designated 
on the notices required under subdivision 3.  
     This subdivision does not apply to towns and special taxing 
districts. 
     Sec. 67.  Minnesota Statutes 1990, section 279.03, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [RATE AFTER DECEMBER 31, 1990.] (a) Except as 
provided in paragraph (b), interest on delinquent property 
taxes, penalties, and costs unpaid on or after January 1, 1991, 
shall be payable at the per annum rate determined in section 
270.75, subdivision 5.  If the rate so determined is less than 
ten percent, the rate of interest shall be ten percent.  The 
maximum per annum rate shall be 14 percent if the rate specified 
under section 270.75, subdivision 5, exceeds 14 percent.  The 
rate shall be subject to change on January 1 of each year.  
    (b) If a person is the owner of one or more parcels of 
property on which taxes are delinquent, and the aggregate tax 
capacity of that property exceeds 5 percent of the total tax 
capacity of the school district in which the property is 
located, interest on the delinquent property taxes, penalties, 
and costs unpaid after January 1, 1992, shall be payable at 
twice the rate determined under paragraph (a) for the year. 
    Sec. 68.  Minnesota Statutes 1990, section 281.17, is 
amended to read: 
    281.17 [PERIOD FOR REDEMPTION.] 
    The period of redemption for all lands sold to the state at 
a tax judgment sale shall be three years from the date of sale 
to the state of Minnesota if the land is within an incorporated 
area unless it is:  (a) nonagricultural homesteaded land as 
defined in section 273.13, subdivision 22,; (b) homesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (a),; or (c) seasonal recreational land as defined in 
section 273.13, subdivision 23, paragraph (c), or subdivision 
25, paragraph (d)(1) or (c)(4), clause (5), in for which 
event the period of redemption is five years from the date of 
sale to the state of Minnesota. 
    The period of redemption for homesteaded lands as defined 
in section 273.13, subdivision 22, located in a targeted 
neighborhood as defined in Laws 1987, chapter 386, article 6, 
section 4, and sold to the state at a tax judgment sale is three 
years from the date of sale.  The period of redemption for all 
lands located in a targeted neighborhood as defined in Laws 
1987, chapter 386, article 6, section 4, except homesteaded 
lands as defined in section 273.13, subdivision 22, and sold to 
the state at a tax judgment sale is one year from the date of 
sale. 
    The period of redemption for all other lands sold to the 
state at a tax judgment sale shall be five years from the date 
of sale, except that the period of redemption for nonhomesteaded 
agricultural land as defined in section 273.13, subdivision 23, 
paragraph (b), shall be two years from the date of sale if at 
that time that property is owned by a person who owns one or 
more parcels of property on which taxes are delinquent, and the 
aggregate tax capacity of that property exceeds 5 percent of the 
total tax capacity of the school district in which the property 
is located. 
    Sec. 69.  Minnesota Statutes 1990, section 364.09, is 
amended to read: 
    364.09 [EXCEPTIONS.] 
    (a) This chapter shall not apply to the practice of law 
enforcement, to fire protection agencies, to eligibility for a 
private detective or protective agent license, to eligibility 
for a family day care license, a family foster care license, a 
home care provider license, to eligibility for a license issued 
or renewed by the board of teaching or state board of education, 
to eligibility for school bus driver endorsements, or to 
eligibility for juvenile corrections employment where the 
offense involved child physical or sexual abuse or criminal 
sexual conduct.  
    (b) This chapter does not apply to a school district.  
    (c) Nothing in this section shall be construed to preclude 
the Minnesota police and peace officers training board or the 
state fire marshal from recommending policies set forth in this 
chapter to the attorney general for adoption in the attorney 
general's discretion to apply to law enforcement or fire 
protection agencies. 
    Sec. 70.  Minnesota Statutes 1990, section 631.40, is 
amended to read: 
    631.40 [JUDGMENT ON CONVICTION; JUDGMENT ROLL DEFINED.] 
    Subdivision 1.  When judgment upon a conviction is 
rendered, the court administrator shall enter the judgment upon 
the minutes, stating briefly the offense for which the 
conviction was had.  The court administrator shall then 
immediately attach together and file the papers specified in 
clauses (1) to (5).  The judgment roll consists of the papers 
specified in clauses (1) to (5): 
    (1) a copy of the minutes of challenge made by the 
defendant to the panel of the grand jury, or to an individual 
grand juror, and the proceedings and decisions on the 
challenges; 
    (2) the indictment or complaint and a copy of the minutes 
of the plea or motion to dismiss or to grant appropriate relief; 
    (3) a copy of the minutes of a challenge made to the panel 
of the trial jury or to an individual juror, and the proceedings 
and decision on the challenge; 
    (4) a copy of the minutes of the trial; and 
    (5) a copy of the minutes of the judgment.  
     Subd. 1a.  When a person is convicted of committing a crime 
against a minor as defined in section 171.3215, subdivision 1, 
the court shall order that the presentence investigation include 
information about whether the offender is a school bus driver as 
defined in section 171.3215, subdivision 1, whether the offender 
possesses a school bus driver's endorsement on the offender's 
driver's license and in what school districts the offender 
drives a school bus.  If the offender is a school bus driver or 
possesses a school bus driver's endorsement, the court 
administrator shall send a certified copy of the conviction to 
the department of public safety and to the school districts in 
which the offender drives a school bus. 
    Subd. 2.  [CRIMES AGAINST MINORS.] When a person is 
convicted of committing a crime against a minor as defined in 
section 214.10, subdivision 9, the court shall order that the 
presentence investigation include information about any 
professional or occupational license held by the offender.  If 
the offender is a licensed person under section 214.10, 
subdivision 9, the court administrator shall send a certified 
copy of the conviction to the board having jurisdiction over the 
offender's license.  Within 30 days of receiving notice of the 
conviction, the appropriate licensing board must initiate 
proceedings to consider revoking the offender's license. 
    Sec. 71.  [RULEMAKING; TEACHER PREPARATION TIME.] 
    By May 1, 1992, the state board of education shall adopt a 
rule under Minnesota Statutes, chapter 14, establishing 
preparation time requirements for elementary school staff that 
are comparable to the preparation time requirements for 
secondary school staff established in Minnesota Rules, part 
3500.3700, subpart 3.  In adopting the rule, the state board 
shall consider the length and structure of the elementary day 
and, if appropriate, permit preparation time to be scheduled at 
more than one time during the school day.  The rule must be 
effective for the 1992-1993 school year.  The state board shall 
establish a process and criteria for granting one-year variances 
from the rule for districts that are unable to comply for the 
1992-1993 school year.  
    Sec. 72.  [SPECIAL EFFECTIVE DATE AND APPLICABILITY TO 
MID-RANGE SPECIAL EDUCATION COOPERATIVE NO. 932.] 
    Section 122.895, subdivisions 4 and 5, are applicable to 
the dissolution of the Mid-Range special education cooperative 
No. 932 on the day following final enactment.  The member 
districts, independent school district No. 695, Chisholm, 
independent school district No. 698, Floodwood, and independent 
school district No. 701, Hibbing, shall be treated as if they 
were equal partners in the dissolution.  The deadline specified 
in section 122.895, subdivision 4, paragraph (b), for notice of 
a teacher's exercise of rights under that subdivision is 11 days 
following the day following final enactment.  The deadline 
specified in section 122.895, subdivision 5, paragraph (b), for 
notice to teachers of available positions is 21 days following 
the day following final enactment.  Teachers employed by the 
Mid-Range special education cooperative No. 932 shall be 
notified under section 122.895, subdivision 5, paragraph (b), of 
available teaching positions as follows:  teachers shall be 
given written notice of available teaching positions only in the 
member district or districts to which the teacher was providing 
services through the cooperative at the time of dissolution.  
The deadline specified in section 122.895, subdivision 5, 
paragraph (c), for notice of a teacher's exercise of rights 
under that subdivision is 37 days following the day following 
final enactment. 
    Sec. 73.  [REGIONAL CENTER EXPENDITURE LIMIT.] 
    For fiscal year 1993, a regional management information 
center may not spend more money than the amount approved by the 
state board in June 1992. 
    Sec. 74.  [REGIONAL SUBSIDY DISTRIBUTION.] 
    Notwithstanding any law to the contrary, a regional 
management information center may distribute regional subsidies 
to the member districts. 
    Sec. 75.  [REPEALER.] 
    Minnesota Statutes 1990, sections 120.105; 121.932, 
subdivision 1; 121.933, subdivision 2; 121.935, subdivision 3; 
121.937, subdivision 2; 122.43, subdivision 1; 123.3514, 
subdivisions 6 and 6b; and 123.73, are repealed.  Minnesota 
Rules, parts 3560.0030, subparts 2(A), 4, and 5; 3560.0040, 
subparts 2 and 4; and 3560.0060, are repealed. 
    Minnesota Statutes 1990, section 123.744, is repealed.  
Laws 1988, chapter 703, article 1, section 23, as amended by 
Laws 1989, chapter 293, section 81; and Laws 1989, chapters 293, 
section 82, and 329, article 9, section 30, are repealed. 
    Sec. 76.  [EFFECTIVE DATE.] 
    Section 123.38, subdivision 2b, is effective the day 
following final enactment and applies to the 1990-1991 school 
year and thereafter.  Sections 123.33, subdivision 1; and 
123.3514, subdivision 4 are effective the day following final 
enactment and apply to 1991-1992 and later school years. 
    Sections 122.895; 123.35, subdivision 20; 125.09, 
subdivision 4; 128C.01, subdivision 5; 214.10, subdivision 9 are 
effective the day following final enactment.  Section 122.41 is 
effective July 1, 1992.  Section 120.062, subdivision 8a, 
paragraphs (b) and (c), are effective retroactively to December 
1, 1990.  Sections 123.3514, subdivision 4; and 124.17, 
subdivision 1c are effective retroactively to July 1, 1990.  
Section 281.17 is effective for taxes deemed delinquent after 
December 31, 1991.  Sections 125.12, subdivisions 3a and 4a; and 
125.17, subdivisions 2a and 3a are effective July 1, 1993.  
Sections 121.931, subdivisions 6a, 7, and 8; 121.932, 
subdivisions 2, 3, and 5; 121.933, subdivision 1; 121.934, 
subdivision 7; 121.935, subdivisions 1, 4, 6, and 8; 121.936, 
subdivisions 1, 2, and 4; and 121.937, subdivision 1, are 
effective July 1, 1993.  
    Under Minnesota Statutes, section 123.34, subdivision 9, a 
contract executed before July 1, 1991, between a superintendent 
and a school board that continues in effect beyond June 30, 
1991, shall continue until terminated under those terms that 
were lawful at the time the contract was executed. 
     Sections 15 to 30 are effective July 1, 1993.  Section 74 
is effective the day following final enactment. 

                               ARTICLE 10

                                LIBRARIES
    Section 1.  Minnesota Statutes 1990, section 134.001, 
subdivision 2, is amended to read: 
    Subd. 2.  "Public library" means any library that provides 
free access to all residents of a city or county without 
discrimination, receives at least half of its financial support 
from public funds and is organized under the provisions of 
chapter 134.  Except as provided in section 3, it does not 
include libraries such as law, medical, school and academic 
libraries organized to serve a special group of persons, or 
libraries organized as a combination of a public library and 
another type of library. 
    Sec. 2.  Minnesota Statutes 1990, section 134.001, 
subdivision 3, is amended to read: 
    Subd. 3.  "Public library services" means services provided 
by or on behalf of a public library and.  Except as provided in 
section 3, it does not include services for elementary schools, 
secondary schools or post-secondary educational institutions. 
    Sec. 3.  [134.195] [LIBRARY OPERATED BY CITY AND SCHOOL 
DISTRICT.] 
    Subdivision 1.  [ESTABLISHMENT.] A school district and a 
city that has established a public library under sections 134.07 
and 134.08, by ordinance or resolution, may jointly finance and 
operate a public library for use by school students and the 
public.  If the city is already taxed for public library service 
by a county, approval of the board of county commissioners is 
required.  If the city is served by a regional public library 
system, approval of the regional public library system board is 
required.  Public library service established under this section 
may be discontinued by action of the city council or the school 
board upon one year's notice to the other party. 
    Subd. 2.  [APPOINTMENT OF JOINT LIBRARY BOARD.] The 
ordinance or resolution shall establish a library board of five, 
seven, or nine members and shall state the number of members to 
be appointed by the mayor, with the approval of the city 
council, and the number of members to be appointed by the school 
board.  One member of the city council and one member of the 
school board shall be appointed to the library board.  The 
remaining members of the library board may not be members of 
either the city council or the school board.  Board members 
shall be residents of the city or the school district. 
    Subd. 3.  [BOARD TERMS OF OFFICE.] The terms of office for 
board members shall be established according to section 134.09, 
subdivision 2.  
    Subd. 4.  [REMOVAL OF BOARD MEMBERS.] The mayor, with the 
approval of the council, or the school board may remove for 
misconduct or neglect any member it has appointed to the library 
board. 
    Subd. 5.  [ABOLISHMENT OF BOARD.] Upon recommendation of a 
majority of the library board established under subdivision 2, 
the city council and the school board may abolish the library 
board provided that the city council and the school district 
shall immediately establish, by ordinance or resolution, a 
successor library board of five, seven, or nine members.  The 
appointment of successor board members shall be as provided in 
subdivision 2 and the terms shall be as provided in subdivision 
3. 
    Subd. 6.  [BOARD VACANCIES AND COMPENSATION.] The library 
board president shall report a vacancy on the board to the 
appointing authority who shall fill the vacancy by appointment 
for the unexpired term.  Library 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. 7.  [POWERS AND DUTIES OF BOARD.] Except as provided 
in subdivision 9, the library board has the powers and duties 
set forth in section 134.11, subdivision 2.  
    Subd. 8.  [FUNDING.] The ordinance or resolution 
establishing the library shall provide for joint financing of 
the library by the school district and the city.  The city shall 
provide at least the minimum dollar amount established in 
section 134.34, subdivision 1.  The school district shall 
provide money for staff and materials for the library at least 
in proportion to the use related to curriculum, as determined by 
the circulation statistics of the library.  Neither the city nor 
the school district shall reduce the financial support provided 
for operation of library or media services below the level of 
support provided in the preceding year. 
    Subd. 9.  [CONTRACTS.] The library board may contract with 
the school board, the regional library board, or the city in 
which the library is situated 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. 10.  [CRITERIA.] Public library services established 
according to this section, including materials, programs, 
equipment, and other public library services, whether located in 
an elementary or secondary school building or elsewhere, shall 
be available for simultaneous use by students and residents of 
the area.  If public library services are located in an 
elementary or secondary school building, a separate entrance, 
accessible from the outside of the school building, shall be 
provided for use by the residents.  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.  
The library shall be centrally located in the community and 
available for use by residents during all hours the school is in 
session, at least 15 additional hours each week during evenings, 
and on Saturdays.  The library shall continue to maintain 
approximately the same hours of operation when the school is not 
in session.  The library shall have telephone service that is 
separate from the telephone service for the school.  Public 
parking, restrooms, drinking water, and other necessities shall 
be easily accessible to residents. 
    Sec. 4.  Minnesota Statutes 1990, section 134.35, is 
amended to read: 
    134.35 [REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS; 
DISTRIBUTION FORMULA.] 
    Subdivision 1.  [GRANT APPLICATION.] Any regional public 
library system which qualifies according to the provisions of 
section 134.34 may apply for an annual grant for regional 
library basic system support.  The amount of each grant for each 
fiscal year shall be calculated as provided in this section. 
    Subd. 2.  Sixty Fifty-seven and one-half percent of the 
available grant funds shall be distributed to provide all 
qualifying systems an equal amount per capita.  Each system's 
allocation pursuant to this subdivision shall be based on the 
population it serves. 
    Subd. 3.  Fifteen Twelve and one-half percent of the 
available grant funds shall be distributed to provide all 
qualifying systems an equal amount per square mile.  Each 
system's allocation pursuant to this subdivision shall be based 
on the area it serves. 
    Subd. 4.  Seven and one-half Five percent of the available 
grant funds shall be paid to each system as a base grant for 
basic system services. 
    Subd. 5.  Seventeen and one-half Twenty-five percent of the 
available grant funds shall be distributed to regional public 
library systems which contain counties whose based upon the 
adjusted net tax capacity per capita were below the state 
average adjusted net tax capacity per capita for each member 
county or participating portion of a county as calculated for 
the second year preceding the fiscal year for which the grant is 
made.  Each system's entitlement shall be calculated as follows: 
    (a) subtract the adjusted net tax capacity per capita for 
each eligible county or participating portion of a county from 
the statewide average adjusted net tax capacity per capita; 
    (b) multiply the difference obtained in clause (a) for each 
eligible county or participating portion of a county by the 
population of that eligible county or participating portion of a 
county; 
    (c) for each regional public library system, determine the 
sum of the results of the computation in clause (b) for all 
eligible counties or portions thereof in that system; 
    (d) determine the sum of the result of the computation in 
clause (b) for all eligible counties or portions thereof in all 
regional public library systems in the state; 
    (e) for each system, divide the result of the computation 
in clause (c) by the result of the computation in clause (d) to 
obtain the allocation factor for that system; 
    (f) multiply the allocation factor for each system as 
determined in clause (e) times the amount of the remaining grant 
funds to determine each system's dollar allocation pursuant to 
this subdivision. 
    (a) Multiply the adjusted net tax capacity per capita for 
each county or participating portion of a county by .0082. 
    (b) Add sufficient grant funds that are available under 
this subdivision to raise the amount of the county or 
participating portion of a county with the lowest value 
calculated according to paragraph (a) to the amount of the 
county or participating portion of a county with the next 
highest value calculated according to paragraph (a).  Multiply 
the amount of the additional grant funds by the population of 
the county or participating portion of a county. 
    (c) Continue the process described in paragraph (b) by 
adding sufficient grant funds that are available under this 
subdivision to the amount of a county or participating portion 
of a county with the next highest value calculated in paragraph 
(a) to raise it and the amount of counties and participating 
portions of counties with lower values calculated in paragraph 
(a) up to the amount of the county or participating portion of a 
county with the next highest value, until reaching an amount 
where funds available under this subdivision are no longer 
sufficient to raise the amount of a county or participating 
portion of a county and the amount of counties and participating 
portions of counties with lower values up to the amount of the 
next highest county or participating portion of a county. 
    (d) If the point is reached using the process in paragraphs 
(b) and (c) at which the remaining grant funds under this 
subdivision are not adequate for raising the amount of a county 
or participating portion of a county and all counties and 
participating portions of counties with amounts of lower value 
to the amount of the county or participating portion of a county 
with the next highest value, those funds are to be divided on a 
per capita basis for all counties or participating portions of 
counties that received grant funds under the calculation in 
paragraphs (b) and (c). 
     Subd. 6.  [POPULATION DETERMINATION.] Population shall be 
determined according to section 477A.011, subdivision 3. 
    Sec. 5.  [FISCAL YEAR 1992 BASIC SUPPORT SYSTEM GRANTS 
POPULATION.] 
    For fiscal year 1992, the portions of the regional library 
basic support system grants determined under Minnesota Statutes, 
section 134.35, subdivisions 2 and 5, shall be based upon the 
population established by the 1980 federal census. 
    Sec. 6.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated. 
    Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
according to Minnesota Statutes, sections 134.32 to 134.35: 
    $6,118,000 ..... 1992 
    $7,563,000 ..... 1993 
    The 1992 appropriation includes $917,000 for 1991 and 
$5,201,000 for 1992. 
    The 1993 appropriation includes $917,000 for 1992 and 
$6,646,000 for 1993. 
    Subd. 3.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
grants according to Minnesota Statutes, sections 134.353 and 
134.354, to multicounty, multitype library systems: 
    $486,000 ..... 1992 
    $527,000 ..... 1993 
    The 1992 appropriation includes $38,000 for 1991 and 
$448,000 for 1992. 
    The 1993 appropriation includes $79,000 for 1992 and 
$448,000 for 1993. 
    Sec. 7.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment.  Section 4 is effective July 1, 1992. 

                               ARTICLE 11

                        STATE EDUCATION AGENCIES
    Section 1.  Minnesota Statutes 1990, section 120.17, 
subdivision 11a, is amended to read: 
    Subd. 11a.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
interagency coordinating council of 15 members is established. 
The members and the chair shall be appointed by the governor.  
The council shall be composed of at least three parents of 
children under age seven with handicaps, three representatives 
of public or private providers of services for children under 
age five with handicaps, one member of the senate, one member of 
the house of representatives, one representative of teacher 
preparation programs in early childhood-special education, at 
least one representative of advocacy organizations for children 
with handicaps, at least one representative of a school district 
or a school district cooperative, and other members 
knowledgeable about children under age five with handicaps.  
Section 15.059, subdivisions 2 to 5, apply to the council.  The 
council shall meet at least quarterly.  A representative of each 
of the commissioners of education, health, and human services 
shall attend council meetings as a nonvoting member of the 
council. 
    The council shall address methods of implementing the state 
policy of developing and implementing comprehensive, 
coordinated, multidisciplinary interagency programs of early 
intervention services for children with handicaps and their 
families. 
     The duties of the council include recommending policies to 
ensure a comprehensive and coordinated system of all state and 
local agency services for children under age five with handicaps 
and their families.  The policies must address how to 
incorporate each agency's services into a unified state and 
local system of multidisciplinary assessment practices, 
individual intervention plans, comprehensive systems to find 
children in need of services, methods to improve public 
awareness, and assistance in determining the role of interagency 
early intervention committees.  
    It is the joint responsibility of county boards and school 
districts to coordinate, provide, and pay for appropriate 
services, and to facilitate payment for services from public and 
private sources.  Appropriate services must be determined in 
consultation with parents, physicians, and other educational, 
medical, health, and human services providers.  Appropriate 
services include family education and counseling, home visits, 
occupational and physical therapy, speech pathology, audiology, 
psychological services, case management, medical services for 
diagnostic and evaluation purposes, early identification, and 
screening, assessment, and health services necessary to enable 
children with handicaps to benefit from early intervention 
services.  School districts must be the primary agency in this 
cooperative effort.  
    Each year by January 15 the council shall submit its 
recommendations to the education committees of the legislature, 
the governor, and the commissioners of education, health, and 
human services. 
    Sec. 2.  Minnesota Statutes 1990, section 121.14, is 
amended to read: 
    121.14 [RECOMMENDATIONS; BUDGET.] 
    The state board and the commissioner of education shall 
recommend to the governor and legislature such modification and 
unification of laws relating to the state system of education as 
shall make those laws more readily understood and more effective 
in execution.  The state board and the commissioner of education 
shall prepare a biennial education budget which shall be 
submitted to the governor and legislature, such budget to 
contain a complete statement of finances pertaining to the 
maintenance of the state department and to the distribution of 
state aid to public schools.  
    Sec. 3.  Minnesota Statutes 1990, section 121.165, is 
amended to read: 
    121.165 [REPORTS BY THE COMMISSIONER.] 
    Prior to January 15 of each year, the commissioner of 
education shall gather and report to the committees on education 
of the senate and house of representatives from presently 
available reports or from new reports it may require of school 
districts, the following types of information:  the number of 
classroom teachers in every district at each training, 
experience and salary level; the ratio of pupils to full time 
equivalent certified classroom teachers in every district; and 
any other district staffing characteristics of fiscal import.  
This information shall be gathered in such a manner as to render 
it capable of district by district, regional and statewide 
comparison and analysis. 
    Sec. 4.  Minnesota Statutes 1990, section 121.49, 
subdivision 1, is amended to read: 
    Subdivision 1.  The department of education shall itemize 
for each school district in the state the total amount of money 
and the amount of money per pupil unit which accrues to the 
district for each fiscal year from each type of state and 
federal aid, refund, payment, credit, disbursement or monetary 
obligation of any kind, including but not limited to each 
special state aid, emergency aid, payments in lieu of taxes, and 
pension and retirement obligations for the benefit of personnel 
of the district.  State agencies which that have information 
necessary for the itemization required by this section shall 
provide the information to the department of education.  The 
completed itemizations shall be reported to the appropriate 
standing committees of the legislature in convenient reference 
form not later than December 1 following the year for which they 
are made. 
    Sec. 5.  Minnesota Statutes 1990, section 121.609, 
subdivision 3, is amended to read: 
    Subd. 3.  [EVALUATION AND REPORT.] The commissioner shall 
provide for independent evaluation of the effectiveness of this 
section.  The evaluation results shall be reported to the 
education committees of the legislature by January 15 of each 
year. 
    The commissioner, with the assistance of the advisory task 
force, shall develop a long-term evaluation instrument for use 
at the research and development sites and other districts 
utilizing the educational effectiveness program.  The long-term 
evaluation instrument shall include a method for measuring 
student achievement.  
    Sec. 6.  Minnesota Statutes 1990, section 121.612, 
subdivision 9, is amended to read: 
    Subd. 9.  [REPORT.] The board of directors of the 
foundation shall submit an annual report to the education 
committees of the legislature state board of education on the 
progress of its activities.  The annual report shall contain a 
financial report for the preceding year, including all receipts 
and expenditures of the foundation. 
    Sec. 7.  Minnesota Statutes 1990, section 121.917, 
subdivision 3, is amended to read: 
    Subd. 3.  If a school district does not limit its 
expenditures in accordance with this section, the commissioner 
shall may so notify the appropriate committees of the 
legislature by no later than January 1 of the year following the 
end of that fiscal year. 
    Sec. 8.  Minnesota Statutes 1990, section 124.14, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
appropriation from the general fund to the department of 
education for any education aid or grant authorized in this 
chapter and chapters 121, 123, 124A, 124C, 125, 126, and 134 
exceeds the amount required, the commissioner of education may 
transfer the excess to any education aid or grant appropriation 
that is insufficient.  However, section 124A.032 applies to a 
deficiency in the direct appropriation for general education 
aid.  Excess appropriations shall be allocated proportionately 
among aids or grants that have insufficient appropriations.  The 
commissioner of finance shall make the necessary transfers among 
appropriations according to the determinations of the 
commissioner of education.  The commissioner of education shall 
report appropriation transfers to the education committees of 
the legislature each year by January 15.  If the amount of the 
direct appropriation for the aid or grant plus the amount 
transferred according to this subdivision is insufficient, the 
commissioner shall prorate the available amount among eligible 
districts.  The state is not obligated for any additional 
amounts.  
    Sec. 9.  Minnesota Statutes 1990, section 124C.03, 
subdivision 16, is amended to read: 
    Subd. 16.  [REPORTING AND EVALUATION.] The commissioner of 
the state planning agency shall evaluate the performance of the 
grantees and report to the legislature by November 15 of each 
year, except that a preliminary report may be submitted by 
February 15, 1991.  
    Sec. 10.  Minnesota Statutes 1990, section 126.665, is 
amended to read: 
    126.665 [STATE CURRICULUM ADVISORY COMMITTEE.] 
    The commissioner shall appoint a state curriculum advisory 
committee of 11 members to advise the state board and the 
department on the PER process.  Nine members shall be from each 
of the educational cooperative service units and two members 
shall be at-large.  The committee shall include representatives 
from the state board of education, parents, teachers, 
administrators, and school board members.  Each member shall be 
a present or past member of a district curriculum advisory 
committee.  The state committee shall provide information and 
recommendations about at least the following:  
    (1) department procedures for reviewing and approving 
reports and disseminating information; 
    (2) exemplary PER processes; 
    (3) recommendations for improving the PER process and 
reports; and 
    (4) developing a continuous process for identifying and 
attaining essential learner outcomes.  
    By February 1 of each year, the commissioner, in 
cooperation with the state curriculum advisory committee, shall 
prepare a report for the education committees of the 
legislature.  The report shall include the recommendations of 
the state curriculum advisory committee.  The committee expires 
as provided in section 15.059, subdivision 5. 
    Sec. 11.  Minnesota Statutes 1990, section 128A.02, 
subdivision 4, is amended to read: 
    Subd. 4.  [PLAN.] (a) The state board must have a two-year 
plan for the academies and must update it annually.  
    (b) The plan must deal with:  
    (1) interagency cooperation; 
    (2) financial accounting; 
    (3) cost efficiencies; 
    (4) staff development; 
    (5) program and curriculum development; 
    (6) use of technical assistance from the department; 
    (7) criteria for program and staff evaluation; 
    (8) pupil performance evaluation; 
    (9) follow-up study of graduates; 
    (10) implementing this chapter; 
    (11) how to communicate with pupils' districts of 
residence; and 
    (12) coordinating instructional and residential programs. 
    (c) The plan may deal with other matters. 
    (d) The state board must submit the plan and 
recommendations for improvement of the academies to the 
education committees of the legislature by January 15 of each 
odd-numbered year.  
     Sec. 12.  Minnesota Statutes 1990, section 128A.05, 
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 
commissioner state board of education must get reimbursed obtain 
reimbursement from the other state for the costs of the 
out-of-state admission.  The commissioner state board may make 
enter into an agreement with the appropriate authority in the 
other state to get reimbursed for the reimbursement.  Money 
received from another state must be paid to the state treasurer 
and deposited by the treasurer in the general fund and credited 
to the general operating account of the academies.  The money is 
appropriated to the academies. 
    Sec. 13.  Minnesota Statutes 1990, section 128C.12, 
subdivision 3, is amended to read: 
    Subd. 3.  [COPIES.] The state auditor must file copies of 
the financial and compliance audit report with the commissioner 
of education, the chairs of the house and senate education 
committees and the director of the legislative reference library.
    Sec. 14.  Minnesota Statutes 1990, section 128C.20, is 
amended to read: 
    128C.20 [COMMISSIONER TO REPORT ON REVIEW OF LEAGUE TO 
LEGISLATURE.] 
    Subdivision 1.  [ANNUALLY.] Each year the commissioner of 
education must report to the legislature before each regular 
session on the activities of the league.  The report must 
contain at least 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. 
    Subd. 2.  [RECOMMEND LAWS.] The commissioner must may 
recommend to the legislature whether any legislation is made 
necessary by league activities.  
    Sec. 15.  Minnesota Statutes 1990, section 129C.10, 
subdivision 3, is amended to read: 
    Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
the powers necessary for the care, management, and control of 
the Minnesota center for arts education and all its real and 
personal property.  The powers shall include, but are not 
limited to, those listed in this subdivision. 
    (b) The board may employ and discharge necessary employees, 
and contract for other services to ensure the efficient 
operation of the center for arts education. 
    (c) The board may receive and award grants.  The board may 
establish a charitable foundation and accept, in trust or 
otherwise, any gift, grant, bequest, or devise for educational 
purposes and hold, manage, invest, and dispose of them and the 
proceeds and income of them according to the terms and 
conditions of the gift, grant, bequest, or devise and its 
acceptance.  The board shall adopt internal procedures to 
administer and monitor aids and grants. 
    (d) The board may establish or coordinate evening, 
continuing education, extension, and summer programs for 
teachers and pupils. 
    (e) The board may identify pupils in grades 9 to 12 who 
have artistic talent, either demonstrated or potential, in 
dance, literary arts, media arts, music, theater, and visual 
arts, or in more than one art form. 
    (f) The board shall educate pupils with artistic talent by 
providing:  
    (1) a pilot an interdisciplinary academic and arts program 
for pupils in the 11th and 12th grades, beginning with 135 
pupils in the 11th grade in September 1989, and 135 pupils in 
the 11th grade and 135 pupils in the 12th grade in September 
1990.  The total number of pupils accepted under this clause and 
clause (2) shall not exceed 300; 
    (2) additional instruction to pupils for a thirteenth grade.
Pupils eligible for this instruction are those enrolled in 12th 
grade who need extra instruction and who apply to the board, or 
pupils enrolled in the 12th grade who do not meet learner 
outcomes established by the board.  Criteria for admission into 
the thirteenth grade shall not be subject to chapter 14; 
    (3) intensive arts seminars for one or two weeks for pupils 
in grades 9 to 12; 
    (3) (4) summer arts institutes for pupils in grades 9 to 
12; 
    (4) (5) artist mentor and extension programs in regional 
sites; and 
    (5) (6) teacher education programs for indirect curriculum 
delivery. 
    (g) The board may determine the location for the Minnesota 
center for arts education and any additional facilities related 
to the center, including the authority to lease a temporary 
facility. 
    (h) The board must plan for the enrollment of pupils on an 
equal basis from each congressional district.  
    (i) The board may establish task forces as needed to advise 
the board on policies and issues.  The task forces expire as 
provided in section 15.059, subdivision 6.  
    (j) The board may request the commissioner of education for 
assistance and services. 
    (k) The board may enter into contracts with other public 
and private agencies and institutions for residential and 
building maintenance services if it determines that these 
services could be provided more efficiently and less expensively 
by a contractor than by the board itself.  The board may also 
enter into contracts with public or private agencies and 
institutions, school districts or combinations of school 
districts, or educational cooperative service units to provide 
supplemental educational instruction and services. 
     (l) The board may provide or contract for services and 
programs by and for the center for arts education, including a 
store, operating in connection with the center; theatrical 
events; and other programs and services that, in the 
determination of the board, serve the purposes of the center. 
     (m) The board may provide for transportation of pupils to 
and from the center for arts education for all or part of the 
school year, as the board considers advisable and subject to its 
rules.  Notwithstanding any other law to the contrary, the board 
may charge a reasonable fee for transportation of pupils.  Every 
driver providing transportation of pupils under this paragraph 
must possess all qualifications required by the state board of 
education.  The board may contract for furnishing authorized 
transportation under rules established by the commissioner of 
education and may purchase and furnish gasoline to a contract 
carrier for use in the performance of a contract with the board 
for transportation of pupils to and from the center for arts 
education.  When transportation is provided, scheduling of 
routes, establishment of the location of bus stops, the manner 
and method of transportation, the control and discipline of 
pupils, and any other related matter is within the sole 
discretion, control, and management of the board. 
    (n) The board may provide room and board for its 
pupils.  If the board provides room and board, it shall charge a 
reasonable fee for the room and board.  The fee is not subject 
to chapter 14 and is not a prohibited fee according to sections 
120.71 to 120.76. 
    (o) The board may establish and set fees for services and 
programs without regard to chapter 14.  If the board sets fees 
not authorized or prohibited by the Minnesota public school fee 
law, it may do so without complying with the requirements of 
section 120.75, subdivision 1. 
    Sec. 16.  Minnesota Statutes 1990, section 129C.10, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [CENTER FUND APPROPRIATION ACCOUNT.] There is 
established in the state treasury a center for arts education 
fund account in the special revenue fund.  All money collected 
by the board, including rental income, shall be deposited in the 
fund account.  Money in the fund account, including interest 
earned, is annually appropriated to the board for the operation 
of its services and programs. 
    Sec. 17.  Minnesota Statutes 1990, section 129C.10, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [ADMISSION AND CURRICULUM REQUIREMENTS 
GENERALLY.] (a) The board may adopt rules for admission to and 
discharge from the full-time programs for talented pupils, rules 
regarding discharge from the dormitory, and rules regarding the 
operation of the center, including transportation of its 
pupils.  Rules covering admission are governed by chapter 14.  
Rules covering discharge from the full-time program for talented 
pupils must be consistent with sections 127.26 to 127.39, the 
pupil fair dismissal act.  Rules covering discharge from the 
dormitory are not governed by the pupil fair dismissal act as 
set forth in sections 127.26 to 127.39.  Rules regarding 
discharge and the operation of the center are not governed by 
chapter 14. 
    (b) Proceedings concerning the full-time program for 
talented pupils, including admission, discharge, a pupil's 
program, and a pupil's progress, are governed by the rules 
adopted by the board and are not contested cases governed by 
chapter 14. 
     Sec. 18.  Minnesota Statutes 1990, section 129C.10, 
subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
SPACE.] Public post-secondary institutions shall provide space 
for programs offered by the Minnesota center for arts education 
at no cost or reasonable cost to the center to the extent that 
space is available at the public post-secondary institutions. 
    Sec. 19.  [129C.15] [RESOURCE, MAGNET, AND OUTREACH 
PROGRAMS.] 
    Subdivision 1.  [RESOURCE AND OUTREACH.] The center shall 
offer resource and outreach programs and services statewide 
aimed at the enhancement of arts education opportunities for 
pupils in elementary and secondary school.  The programs and 
services shall include: 
    (1) developing and demonstrating exemplary curriculum, 
instructional practices, and assessment; 
    (2) disseminating information; and 
    (3) providing programs for pupils and teachers that develop 
technical and creative skills in art forms that are 
underrepresented and in geographic regions that are underserved. 
    Subd. 2.  [MAGNET PROGRAMS.] The center shall identify at 
least one school district in each congressional district with 
interest and the potential to offer magnet arts programs using 
the curriculum developed by the Minnesota center for arts 
education. 
    Sec. 20.  Minnesota Statutes 1990, section 134.31, 
subdivision 4, is amended to read: 
    Subd. 4.  The department shall collect statistics on the 
receipts, expenditures, services, and use of the regional public 
library systems and the public libraries of the state.  It shall 
also collect statistics on all activities undertaken pursuant to 
sections 134.31 to 134.35.  The department shall report its 
findings to the legislature prior to November 15 of each 
even-numbered year, together with a statement of its 
expenditures relating to these activities and any other matters 
as it deems appropriate. 
    Sec. 21.  Minnesota Statutes 1990, section 134.351, 
subdivision 7, is amended to read: 
    Subd. 7.  [REPORTS.] Each multicounty, multitype system 
receiving a grant pursuant to section 134.353 or 134.354 shall 
provide an annual progress report to the department of 
education.  The department shall report before November 15 of 
each even-numbered year to the legislature on all projects 
funded under sections 134.353 and 134.354. 
    Sec. 22.  Minnesota Statutes 1990, section 268.08, 
subdivision 6, is amended to read: 
    Subd. 6.  [SERVICES PERFORMED FOR STATE, MUNICIPALITIES OR 
CHARITABLE CORPORATION.] Benefits based on service in employment 
defined in section 268.04, subdivision 12, clauses (7), (8) and 
(9), are payable in the same amount, on the same terms and 
subject to the same conditions as benefits payable on the basis 
of other service subject to this chapter; except that 
    (a) Benefits based upon service performed in an 
instructional, research, or principal administrative capacity 
for an institution of higher education or a public school, or a 
nonpublic school, or the Minnesota state academy for the deaf or 
Minnesota state academy for the blind, or the Minnesota center 
for arts education, or in a public or nonpublic school for an 
educational cooperative service unit established under section 
123.58, or any other educational service agency as defined in 
section 3304(a)(6)(A)(IV) of the Federal Unemployment Tax Act, 
shall not be paid for any week of unemployment commencing during 
the period between two successive academic years or terms, or 
during a similar period between two regular but not successive 
terms, or during a period of paid sabbatical leave provided for 
in the individual's contract, to any individual if the 
individual performs the services in the first of the academic 
years or terms and if there is a contract or a reasonable 
assurance that the individual will perform services in any such 
capacity for any institution of higher education, public school, 
nonpublic school, Minnesota state academies for the deaf and 
blind, the Minnesota center for arts education, an educational 
cooperative service unit, or other educational service agency, 
in the second of the academic years or terms, and 
    (b) With respect to service performed in any capacity other 
than those capacities described in clause (a) of this 
subdivision, for an institution of higher education, or a public 
school or nonpublic school, or the Minnesota state academy for 
the deaf or Minnesota state academy for the blind, or the 
Minnesota center for arts education, or in a public or nonpublic 
school or for an educational cooperative service unit 
established under section 123.58, or any other educational 
service agency as defined in section 3304(a)(6)(A)(IV) of the 
Federal Unemployment Tax Act, benefits shall not be paid on the 
basis of these services to any individual for any week which 
commences during a period between two successive academic years 
or terms if the individual performs the services in the first of 
the academic years or terms and there is a reasonable assurance 
that the individual will perform the services in the second of 
the academic years or terms.  If benefits are denied to any 
individual under this clause and the individual was not offered 
an opportunity to perform the services in the second of the 
academic years or term, the individual shall be entitled to a 
retroactive payment of benefits for each week in which the 
individual filed a timely claim for benefits, but the claim was 
denied solely because of this clause; and 
     (c) With respect to services described in clauses (a) or 
(b), benefits payable on the basis of the services shall not be 
paid to any individual for any week which commences during an 
established and customary vacation period or holiday recess if 
the individual performs the services in the period immediately 
before the vacation period or holiday recess, and there is a 
reasonable assurance that the individual will perform the 
services in the period immediately following the vacation period 
or holiday recess. 
    Sec. 23.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] (a) The sums 
indicated in this section are appropriated from the general 
fund, unless otherwise indicated, to the department of education 
for the fiscal years designated. 
    (b) The amounts that may be spent for each program are 
specified in the following subdivisions. 
    (c) The approved complement is: 
             1992      1993
General Fund 258.5     258.5
Federal      135.6     135.6
Other         28.9      28.9
Total        423.0     423.0
    (d) The commissioner of education, with the approval of the 
commissioner of finance, may transfer unencumbered balances 
among the programs during the biennium.  Transfers must be 
reported immediately to the education finance division of the 
education committee of the house of representatives and the 
education funding division of the education committee of the 
senate.  During the biennium, the commissioner may transfer 
money among the various objects of expenditure categories and 
activities within each program, unless restricted by executive 
order. 
    (e) The commissioner of education may transfer complement 
among funds if necessary and must provide a listing of the 
transfers to the commissioner of finance at the end of each 
fiscal year.  Material changes must be approved by the 
commissioner of finance and reported to the house education 
finance division and the senate education funding division. 
    (f) The expenditures of federal grants and aids as shown in 
the biennial budget document are approved and shall be spent as 
indicated. 
    (g) The commissioner shall continue to enforce Minnesota 
Statutes, section 126.21, and other civil rights laws as they 
apply to programs supervised by the commissioner.  This function 
must not be performed by the same person who, with funding under 
a federal grant, is providing technical assistance to school 
districts in implementing nondiscrimination laws. 
    (h) It is the policy of the legislature to maximize the 
delivery of educational services to students.  If a reduction in 
the number of employees of the department of education is 
necessary, the commissioner must make the reduction to personnel 
based on the following:  
    (1) Compute a ratio for each category of management, 
supervisory, line, and support personnel equal to:  
    (i) the salaries paid to personnel in each category, for 
the fiscal year ending June 30, 1991, divided by 
    (ii) the total salaries paid to employees in the department 
for the fiscal year ending June 30, 1991.  
    (2) Reduce the personnel budget in each category of 
personnel by an amount equal to the total budget reduction 
determined by the department for personnel reduction, times the 
ratio computed in clause (1).  
    (3) The total budget reduction is the difference between 
the general fund appropriation for the department and the amount 
recommended by the governor.  
    Subd. 2.  [EDUCATIONAL SERVICES.] 
     $7,701,000     .....    1992 
     $7,698,000     .....    1993 
    $21,000 each year is from the trunk highway fund. 
    $75,000 each year is from the alcohol-impaired driver 
education account in the special revenue fund. 
    $104,000 each year is for the academic excellence 
foundation. 
    Subd. 3.  [ADMINISTRATION AND FINANCIAL SERVICES.] 
     $7,023,000     .....     1992
     $7,033,000     .....     1993
    $1,308,000 in 1992 and $1,304,000 in 1993 are for the 
education data systems section, of which $12,000 each year is 
for the expenses of the ESV computer council.  Any balance in 
the first year does not cancel and is available for the second 
year. 
    $1,298,000 in 1992 and $1,294,000 in 1993 are for the 
education finance and analysis section. 
    $219,000 each year is for the state board of education. 
    $200,000 each year is for contracting with the state fire 
marshal to provide the services required according to Minnesota 
Statutes, section 121.1502. 
    The board of teaching budget is not exempt from internal 
reallocations and reductions required to balance the budget of 
the combined agencies. 
    The commissioner shall maintain no more than five total 
complement in the categories of commissioner, deputy 
commissioner, assistant commissioner, assistant to the 
commissioner, and executive assistant. 
    Subd. 4.  [EDUCATIONAL EFFECTIVENESS.] For educational 
effectiveness programs according to Minnesota Statutes, sections 
121.608 and 121.609: 
    $900,000 ..... 1992 
    $900,000 ..... 1993 
    Subd. 5.  [ACADEMIC EXCELLENCE FOUNDATION.] For the 
academic excellence foundation according to Minnesota Statutes, 
section 121.612:  
    $260,000 ..... 1992 
    $260,000 ..... 1993 
    Up to $50,000 each year is contingent upon the match of $1 
in the previous year from private sources consisting of either 
direct monetary contributions or in-kind contributions of 
related goods or services, for each $1 of the appropriation.  
The commissioner of education must certify receipt of the money 
or documentation for the private matching funds or in-kind 
contributions.  The unencumbered balance from the amount 
actually appropriated from the contingent amount in 1992 does 
not cancel but is available in 1993.  The amount carried forward 
must not be used to establish a larger annual base appropriation 
for later fiscal years. 
    Subd. 6.  [STATE PER ASSISTANCE.] For state assistance for 
planning, evaluating, and reporting:  
     $601,000     .....     1992 
     $601,000     .....     1993 
    At least $45,000 each year must be used to assist districts 
with the assurance of mastery program.  
    Sec. 24.  [FARIBAULT ACADEMIES APPROPRIATION.] 
    The sums indicated in this section are appropriated from 
the general fund to the department of education for the 
Faribault Academies:  
     $7,801,000     .....     1992
     $7,773,000     .....     1993
    Any balance in the first year does not cancel and is 
available for the second year. 
    The approved complement is: 
              1992       1993
General fund  185.6      185.6
Federal         8.0        8.0
Total         193.6      193.6
    The state board of education may transfer complement among 
funds if necessary and must provide a listing of the transfers 
to the commissioner of finance at the end of each fiscal year.  
Material changes must be approved by the commissioner of finance 
and reported to the house education finance division and the 
senate education funding division. 
    The state board of education, with the approval of the 
commissioner of finance, may increase the complement above the 
approved levels if funds are available for the academies in 
addition to the amounts appropriated in this section. 
    Sec. 25.  [MINNESOTA CENTER FOR ARTS EDUCATION 
APPROPRIATION.] 
    The sums indicated in this section are appropriated from 
the general fund to the Minnesota center for arts education for 
the fiscal years indicated: 
     $5,064,000     .....     1992
     $5,057,000     .....     1993
    Any balance in the first year does not cancel but is 
available in the second year. 
    The approved complement is: 
                         1992     1993
General Fund              53       53
Total                     53       53
    The complement may be increased by the number of staff 
currently on interchange agreements or contracts if adding these 
staff to the center complement will result in cost savings.  The 
complement may also be increased if the board determines that 
additional complement is necessary to protect the health and 
safety of students. 
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1990, sections 120.104; 121.15, 
subdivision 10; 121.936, subdivision 5; 124.48, subdivision 2; 
125.231, subdivision 6; 128B.10, subdivision 3; 128C.12, 
subdivision 2; 129C.10, subdivision 5; 135A.10, subdivision 2; 
and 136A.044, are repealed. 
    Laws 1989, chapter 329, article 12, section 8, is repealed. 

                               ARTICLE 12

                    MAXIMUM EFFORT SCHOOL LOAN BONDS
    Section 1.  [124.479] [BOND ISSUE; MAXIMUM EFFORT SCHOOL 
LOANS, 1991.] 
    To provide money to be loaned to school districts as 
agencies and political subdivisions of the state to acquire and 
to better public land and buildings and other public 
improvements of a capital nature, in the manner provided by the 
maximum effort school aid law, the commissioner of finance shall 
issue and sell school loan bonds of the state of Minnesota in 
the maximum amount of $45,065,000, in addition to the bonds 
already authorized for this purpose.  The same amount is 
appropriated to the maximum effort school loan fund and must be 
spent under the direction of the commissioner of education to 
make debt service loans and capital loans to school districts as 
provided in sections 124.36 to 124.47.  The bonds must be issued 
and sold and provision for their payment must be made according 
to section 124.46.  Expenses incidental to the sale, printing, 
execution, and delivery of the bonds, including, but without 
limitation, actual and necessary travel and subsistence expenses 
of state officers and employees for those purposes, must be paid 
from the maximum effort school loan fund, and the money 
necessary for the expenses is appropriated from that fund. 
    No bonds may be sold or issued under this section until all 
bonds authorized by Laws 1990, chapter 610, sections 2 to 7, are 
sold and issued and the authorized project contracts have been 
initiated or abandoned.  
    Sec. 2.  [1991 MAXIMUM EFFORT LOANS.] 
    The commissioner of education shall make capital loans to 
independent school district No. 115, Cass Lake; independent 
school district No. 192, Farmington; independent school district 
No. 682, Roseau; independent school district No. 748, Sartell; 
independent school district No. 345, New London-Spicer; 
independent school district No. 533, Dover-Eyota; independent 
school district No. 95, Cromwell; and independent school 
district No. 255, Pine Island.  Capital loans to these districts 
are approved. 
    Districts approved in a law for a maximum effort loan shall 
have their project plans and budgets reviewed by the 
commissioner to determine optimum cost efficiency.  The 
commissioner may reduce the amount of the loans in accord with 
this review.  Costs incurred by the commissioner for 
professional services associated with the review may be 
recovered from the districts. 
    Notwithstanding any law to the contrary, if the available 
funding is inadequate to meet the loan requests of all the 
approved districts, the commissioner may reduce the amount of 
the loan.  The reduction to each district's loan must be 
proportionate to the approved loan amount.  Capital loans must 
be made to all approved districts. 
    Except for reductions in the loans made according to this 
section, the amount, terms, and forgiveness of the loans are 
governed by Minnesota Statutes 1990, section 124.431. 
    Sec. 3.  [BONDING AUTHORITY.] 
    Notwithstanding the election requirements of Minnesota 
Statutes, chapter 475, or any other law to the contrary, any 
school district with a capital loan approved in section 2 may 
issue general obligation bonds without an election in an amount 
not to exceed the difference between the state board approved 
capital loan project cost and the sum of the amount of the 
capital loan actually granted and the voter approved local 
bonding authority.  If a project has been previously approved by 
the voters, changes in that project that do not change the total 
project cost do not require further voter approval.  To pay the 
principal of and interest on bonds issued under this section, 
the school district shall levy a tax in an amount sufficient 
under Minnesota Statutes, section 475.61, subdivisions 1 and 3.  
The tax authorized under this section is in addition to any 
other taxes levied under Minnesota Statutes, chapter 124, 124A, 
or 275, or any other law. 
    Sec. 4.  [APPROPRIATION; MAXIMUM EFFORT SCHOOL LOAN FUND.] 
    $3,795,000 is appropriated from the general fund to the 
department of education for fiscal year 1993 for the maximum 
effort school loan fund.  This appropriation is added to the 
appropriation in article 5 for this purpose.  All the conditions 
that apply to the maximum effort school loan fund appropriation 
in article 5 apply to this appropriation. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment. 
    Presented to the governor May 31, 1991 
    Signed by the governor June 4, 1991, 9:05 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