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1983 Minnesota Session Laws

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                         Laws of Minnesota 1983 

                         CHAPTER 314--H.F.No. 92
           An act relating to education; providing for aids to 
          education, aids to libraries, state payments for 
          teacher retirement contributions, tax levies, and the 
          distribution of tax revenues; granting certain duties 
          and powers to school boards, school districts, the 
          state board of education, the state board for 
          vocational education, and the higher education 
          coordinating board; modifying certain components of 
          foundation aid; providing for revenue equity; 
          modifying the computation of the transportation aid, 
          summer school, and community education aids and 
          levies; providing funding for AVTI's; providing 
          incentives for school districts to use technology in 
          education; modifying certain provisions relating to 
          teacher mobility programs; modifying certain duties of 
          the council on quality education; appropriating money; 
          amending Minnesota Statutes 1982, sections 6.54; 6.62, 
          subdivision 1; 120.0751, subdivision 3; 120.17, 
          subdivision 3; 121.15; 121.503; 121.505; 121.904, 
          subdivision 4a, as amended; 121.908; 121.911, by 
          adding a subdivision; 121.912, subdivision 3, and by 
          adding a subdivision; 121.936, by adding a 
          subdivision; 122.23, subdivisions 2 and 3; 122.41; 
          122.43; 122.44; 122.531, subdivision 2, and by adding 
          subdivisions; 123.32, by adding a subdivision; 123.33, 
          subdivisions 10 and 14; 123.34, subdivision 9; 
          123.351, subdivision 4; 123.36, subdivisions 9, 13, 
          and by adding a subdivision; 123.37, subdivision 1b; 
          123.39, subdivision 4; 123.702, subdivision 1a; 
          123.705; 123.741, subdivision 1; 123.933, subdivision 
          3; 124.14, subdivision 1; 124.15, subdivision 5; 
          124.155, subdivision 2, as amended; 124.17, 
          subdivision 2d; 124.19, subdivision 3; 124.201, 
          subdivisions 2 and 3, and by adding subdivisions; 
          124.2122, subdivisions 1 and 2; 124.2124, subdivision 
          1; 124.2126, subdivision 3; 124.2127, subdivision 1; 
          124.2132, subdivisions 1 and 4; 124.214, subdivision 
          2; 124.225; 124.245, by adding a subdivision; 124.246, 
          subdivision 2; 124.247, subdivision 3, and by adding a 
          subdivision; 124.26, subdivision 1; 124.271, 
          subdivisions 2a, 6, and by adding subdivisions; 
          124.273, subdivision 4; 124.32, subdivisions 3a, 5, 
          and 5a; 124.43, subdivision 1; 124.572, subdivision 2; 
          124.646, subdivision 1; 125.05, by adding a 
          subdivision; 125.12, subdivisions 6a, 6b, and by 
          adding a subdivision; 125.17, subdivisions 1 and 11; 
          125.60, subdivisions 2, 3, and 7; 125.611, 
          subdivisions 8 and 9; 126.54, subdivision 1; 129B.01, 
          subdivision 2; 129B.02; 129B.04; 129B.05; 129B.09, 
          subdivisions 1 and 12; 134.07; 134.08; 134.09; 134.10; 
          134.11; 134.12; 134.13; 134.14; 134.15; 134.30; 
          134.32, subdivisions 1 and 7; 134.351, subdivisions 3 
          and 7; 134.353; 134.36; 136A.02, subdivision 1; 
          275.125, subdivisions 2d, 2e, 2i, 4, 5, 5b, 8, 9, 11a, 
          11b, and by adding subdivisions; 354.094, subdivisions 
          1, 1a, and by adding a subdivision; 354.66, 
          subdivisions 4, 9, and by adding a subdivision; 
          354A.091, subdivisions 1, 1a, and by adding a 
          subdivision; 354A.094, subdivisions 4, 9, and by 
          adding a subdivision; 375.335; 466.06; 475.61, 
          subdivision 3; and 648.39, subdivision 1; Laws 1967, 
          chapter 822; Laws 1969, chapters 775, section 3, 
          subdivision 2, as amended; and 1060; Laws 1974, 
          chapter 237, section 1; Laws 1981, chapter 358, 
          article VII, section 29, as amended; and Laws 1982, 
          chapter 548, article III, sections 27 and 28; 
          proposing new law coded in Minnesota Statutes, 
          chapters 3; 120; 121; 122; 124; 125; 126; 129B; and 
          134; proposing new law coded as Minnesota Statutes, 
          chapter 124A; repealing Minnesota Statutes 1982, 
          sections 122.542; 122.90; 124.11, subdivisions 1 and 
          2c; 124.2123; 124.2124; 124.2125; 124.2128; 124.24; 
          124.251; 124.26, subdivision 4; 124.271, subdivision 
          5; 124.273, subdivision 1 and 2; 124.32, subdivisions 
          1 and 9; 124.561; 124.562; 124.5621; 124.5622; 
          124.5623; 124.5624; 124.5625; 124.5626; 124.5627; 
          124.611; 129B.09, subdivision 5; 134.03; 134.06; 
          134.16; 134.19; 134.352; 275.125, subdivisions 6b, 6c, 
          6d, 7a, and 7c; and 375.33. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
FOUNDATION AID
    Section 1.  Minnesota Statutes 1982, section 124.2122, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FORMULA ALLOWANCE.] "Foundation aid 
formula allowance" or "formula allowance" means the amount of 
revenue per pupil unit used in the computation of foundation aid 
for a particular school year and in the computation of 
permissible levies for use in that school year.  The formula 
allowance shall be $1,333 for foundation aid for the 1981-1982 
school year.  The formula allowance shall be $1,346 for 1981 
payable 1982 levies and for foundation aid for the 1982-1983 
school year.  The formula allowance shall be $1,475 for the 1982 
payable 1983 levies and for foundation aid for the 1983-1984 
school year.  The formula allowance shall be $1,475 for the 1983 
payable 1984 levies and for foundation aid for the 1984-1985 
school year.  
    Sec. 2.  Minnesota Statutes 1982, section 124.2122, 
subdivision 2, is amended to read: 
    Subd. 2.  [BASIC MAINTENANCE MILL RATE.] "Basic maintenance 
mill rate" means the mill rate applicable to the adjusted 
assessed valuation of a district, used in the computation of 
basic foundation aid for a particular school year and of the 
basic maintenance levy for use in that school year.  The basic 
maintenance mill rate shall be .021 for the 1980 payable 1981 
levy and for foundation aid for the 1981-1982 school year.  The 
basic maintenance mill rate shall be .024 for 1981 payable 1982 
levies and for foundation aid for the 1982-1983 school year.  
The basic maintenance mill rate shall be .024 for the 1982 
payable 1983 levies and for foundation aid for the 1983-1984 
school year.  A district may levy less than 24 mills.  If a 
district levies at least 95 percent of an amount equal to 23 
mills times the adjusted assessed valuation of the district, 
basic foundation aid shall be computed as though the district 
had levied 24 mills times the adjusted assessed valuation of the 
district.  The basic maintenance mill rate shall be .024 for the 
1983 payable 1984 levies and for foundation aid for the 
1984-1985 school year.  
    Sec. 3.  Minnesota Statutes 1982, section 124.2124, 
subdivision 1, is amended to read:  
    Subdivision 1.  [REPLACEMENT COMPONENTS.] (a) A district's 
"fluctuating enrollment replacement component" shall equal the 
amount of additional foundation aid or basic maintenance levy 
revenue the district would have received for the 1980-1981 
school year if declining or growing enrollment pupil units had 
been used in the computation of basic foundation aid for 
1980-1981 pursuant to Minnesota Statutes 1980, Section 124.212, 
Subdivision 7c, Clause (1) or of the 1979 basic maintenance levy 
limitation pursuant to Minnesota Statutes, 1979 Supplement, 
Section 275.125, Subdivision 2b or 2c. 
    (b) Beginning with the aid and levy revenue for the 
1983-1984 school year, in any district where the actual number 
of pupil units increased from the 1979-1980 school year to the 
1980-1981 school year, the district's "recomputed fluctuating 
enrollment replacement component" shall equal the amount of 
additional foundation aid or basic maintenance levy revenue the 
district would have received for the 1980-1981 school year if 
the district had qualified for the greater of either the 
1980-1981 declining enrollment pupil units or the 1980-1981 
growing enrollment pupil units to be used in the computation of 
basic foundation aid for 1980-1981 pursuant to Minnesota 
Statutes 1980, Section 124.212, Subdivision 7c, Clause (1) or of 
the 1979 basic maintenance levy limitation pursuant to Minnesota 
Statutes 1979 Supplement, Section 275.125, Subdivision 2b or 2c. 
    (c) A district's "sparsity replacement component" shall 
equal the amount of additional aid the district would have 
received for the 1980-1981 school year if Minnesota Statutes, 
1979 Supplement, Section 124.224 had been effective for 
1980-1981.  Beginning with the 1983-1984 school year, for 
elementary districts, the component shall equal the amount of 
additional aid the district would have received for the 
1980-1981 school year if pupils attending secondary school in 
another district had attended a secondary school in the district 
in which they reside.  
    (d) A district's "basic replacement entitlement" shall 
equal the sum of (1) the greater of (i) its fluctuating 
enrollment replacement component, or (ii) its recomputed 
fluctuating enrollment replacement component, and (2) its 
sparsity replacement component; divided by its total pupil units 
in 1980-1981. 
    (e) "Replacement inflator" for any school year means the 
ratio of the foundation aid formula allowance for that school 
year to $1,265.  However, for the 1981-1982 school year the 
replacement inflator shall equal 107 percent, and for the 
1982-1983 school year the replacement inflator shall equal 112 
percent. 
    (f) A district's "replacement allowance" for each school 
year shall equal its basic replacement entitlement times the 
replacement inflator for that school year. 
    (g) A district's "replacement levy limitation" means its 
levy limitation computed pursuant to section 275.125, 
subdivision 6c. 
    Sec. 4.  Minnesota Statutes 1982, section 124.2126, 
subdivision 3, is amended to read: 
    Subd. 3.  [MINIMUM AID.] A qualifying district's minimum 
aid for each school year shall equal its minimum guarantee for 
that school year, minus the sum of: 
    (1) The amount of the district's state school agricultural 
tax credit aid for that school year; 
    (2) The amount by which property taxes of the district for 
use in that school year are reduced by the homestead credit 
provisions in section 273.13, subdivisions 6, 7, and 14a; 
    (3) The amount by which property taxes of the district for 
use in that school year are reduced by the taconite homestead 
credit provisions in section 273.135;  
    (4) The amount by which property taxes of the district for 
use in that school year are reduced by the attached machinery 
provisions in section 273.138, subdivision 6;  
    (5) The amount by which property taxes of the district for 
use in that school year are reduced by the state paid wetlands 
credit provisions in section 273.115;  
    (6) The amount by which property taxes of the district for 
use in that school year are reduced by the state paid native 
prairie credit provisions in section 273.116; and 
    (7) The amount by which property taxes of the district for 
use in that school year are reduced by the credit for reduced 
assessment provisions in section 273.139;  
     (8) The amount by which property taxes of the district for 
use in that school year are reduced by the state reimbursed 
disaster or emergency reassessment provisions in section 
273.123; and 
     (9) The amount by which property taxes of the district for 
use in that school year are reduced by the metropolitan 
agricultural preserve provisions in section 473H.10.  
    Sec. 5.  Minnesota Statutes 1982, section 124.2127, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITION; FOUNDATION AID.] Shared time 
pupils are defined as those pupils who attend public school 
programs for part of the regular school day and who otherwise 
fulfill the requirements of section 120.10 by attendance at a 
nonpublic school.  
    (a) The average daily membership of a pupil enrolled on a 
shared time basis shall equal the ratio of the total minutes for 
which the pupil is enrolled and the minimum minutes required 
during the year for a regularly enrolled public school pupil.  
    (b) Foundation aid for shared time pupils shall equal the 
amount which would accrue if shared time pupil units, counted 
pursuant to section 124.17, subdivision 1, clauses (1) and (2), 
were added to the district's total pupil units used in 
determining its foundation aid formula allowance times the 
full-time equivalent actual pupil units for shared time pupils.  
Foundation aid for shared time pupils shall be in addition to 
any other aid to which the district is otherwise entitled and 
shared time average daily membership shall not be used in the 
computation of pupil units under section 124.17, subdivision 1, 
for any purpose other than the computation of shared time 
foundation aid pursuant to this subdivision.  
     (c) Foundation aid for shared time pupils shall be paid to 
the district of the pupil's residence.  If a pupil attends 
shared time classes in another district, the resident district 
shall pay to the district of attendance an amount of tuition 
equal to the ratio in clause (a) times the amount of tuition 
which would be charged and paid for a nonresident public school 
pupil in a similar circumstance.  The district of residence 
shall not be obligated for tuition except by previous agreement. 
     (d) Notwithstanding the provisions of clause (c), the 
resident district of a shared time pupil attending shared time 
classes in another district may grant the district of 
attendance, upon its request, permission to claim the pupil as a 
resident for state aid purposes.  In this case, state aid shall 
be paid to the district of attendance and, upon agreement, the 
district of attendance may bill the resident district for any 
unreimbursed education costs, but not for unreimbursed 
transportation costs.  The agreement may, however, provide for 
the resident district to pay the cost of any of the particular 
transportation categories specified in section 124.225, 
subdivision 1, and in this case, aid for those categories shall 
be paid to the district of residence rather than to the district 
of attendance.  
    (e) Minutes of enrollment in a public school during which a 
nonpublic school pupil receives services pursuant to section 
123.935 shall not be used in the computation of shared time 
foundation aid pursuant to this subdivision. 
    Sec. 6.  Minnesota Statutes 1982, section 124.2132, 
subdivision 4, is amended to read: 
    Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] (1) The amount 
of money apportioned to a school district for each school year 
pursuant to section 124.10, subdivision 2, which exceeds the 
amount apportioned to that district pursuant to section 124.10, 
subdivision 2 for the 1976-1977 school year, shall be deducted 
from the foundation aid earned by that district for the same 
year.  
    (2) In addition to the deduction in clause (1), five-sixths 
of the amount apportioned pursuant to section 124.10, 
subdivision 2, shall be deducted from foundation aid for the 
1981-1982 school year, but this deduction shall not exceed 
five-sixths of the amount apportioned for the 1976-1977 school 
year.  
    (3) In the 1982-1983 school year and Each school year 
thereafter, the entire amount of money apportioned to a school 
district for that year pursuant to section 124.10, subdivision 
2, shall be deducted from the foundation aid earned by that 
district for the same year.  
    Sec. 7.  [124.2138] [REVENUE EQUITY AID SUBTRACTION.] 
    Subdivision 1.  [BASIC MAINTENANCE LEVY EQUITY.] (1) In any 
year when the amount of the maximum levy limitation for any 
district under section 275.125, subdivision 2a, exceeds the 
district's basic foundation revenue for the corresponding fiscal 
year, an amount shall be deducted as provided in this 
subdivision from special state aids of chapter 124 receivable 
for the same fiscal year, and from state payments on behalf of 
the district for the same fiscal year authorized in sections 
354.43, subdivision 1; 354A.12, subdivision 2; and 355.46, 
subdivision 3, clause (b).  However, the aid authorized in 
sections 124.2137 and 124.646 shall not be reduced.  
    (2) The amount of the deduction shall equal the difference 
between:  
    (a) the sum of the amount of the district's maximum levy 
limitation under section 275.125, subdivision 2a, plus the 
amount of any reductions to that levy limitation pursuant to 
section 275.125, subdivisions 2e and 9, and 
    (b) the district's basic foundation revenue.  
    However, for fiscal year 1985, the amount of the deduction 
shall be one-sixth of the difference between clauses (a) and 
(b); for fiscal year 1986, the amount of the deduction shall be 
one-third of the difference between clauses (a) and (b); for 
fiscal year 1987, the amount of the deduction shall be one-half 
of the difference between clauses (a) and (b); for fiscal year 
1988, the amount shall be two-thirds of the difference between 
clauses (a) and (b); and for fiscal year 1989, the amount of the 
deduction shall be five-sixths of the difference between clauses 
(a) and (b).  
    Subd. 2.  [TRANSPORTATION LEVY EQUITY.] (1) In any fiscal 
year in which the transportation levy in a district attributable 
to that fiscal year of 1.75 mills times the adjusted assessed 
valuation of the district exceeds the transportation aid 
computation under section 124.225, subdivisions 8b, 8i, 8j, and 
8k, an amount shall be deducted as provided in this subdivision 
from special state aids of chapter 124 receivable for the same 
fiscal year, and from state payments on behalf of the district 
for the same fiscal year authorized in sections 354.43, 
subdivision 1; 354A.12, subdivision 2; and 355.46, subdivision 
3, clause (b), to the extent that those special state aids and 
state payments have not been reduced pursuant to subdivision 1 
of this section.  However, aid authorized in sections 124.2137 
and 124.646 shall not be reduced. 
     (2) The amount of the deduction shall equal the difference 
between:  
    (a) 1.75 mills times the adjusted assessed valuation of the 
district for the levy attributable to that fiscal year, and 
    (b) the sum of the district's transportation aid 
computation pursuant to section 124.225, subdivisions 8b, 8i, 
8j, and 8k, less the amount of any aid reduction due to an 
insufficient appropriation as provided in section 124.225, 
subdivision 8a.  
    However, for fiscal year 1985, the amount of the deduction 
shall be one-sixth of the difference between clauses (a) and 
(b); for fiscal year 1986, the amount of the deduction shall be 
one-third of the difference between clauses (a) and (b); for 
fiscal year 1987, the amount of the deduction shall be one-half 
of the difference between clause (a) and (b); for fiscal year 
1988, the amount of the deduction shall be two-thirds of the 
difference between clauses (a) and (b); and for fiscal year 
1989, the amount of the deduction shall be five-sixths of the 
difference between clauses (a) and (b).  
    Subd. 3.  In any fiscal year in which the state payments on 
behalf of a district authorized in sections 354.43, subdivision 
1; 354A.12, subdivision 2; and 355.46, subdivision 3, clause 
(b), are reduced under this section, the commissioner of 
education shall certify the amounts of the required reductions 
to the district.  The district shall pay employer contributions 
in the amount of the reduction of these payments to the 
commissioner, which amount shall be placed in the general fund.  
    Sec. 8.  [124A.01] [FOUNDATION AID COMPONENTS.] 
     Foundation aid shall equal the sum of the following: 
     (a) basic aid; 
    (b) cost differential tier aid;  
     (c) second tier aid; 
     (d) third tier aid; 
     (e) fourth tier aid; 
     (f) fifth tier aid; 
     (g) minimum aid; and 
     (h) shared time pupil aid.  
    Sec. 9.  [124A.02] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] For the purpose of this 
chapter, the following terms have the meaning given them.  
    Subd. 2.  [ACTUAL LEVY.] "Actual levy" means the amount a 
district reports, according to section 275.125, subdivision 18, 
to the department of education that it has levied for each tier. 
    Subd. 3.  [PERMITTED LEVY.] "Permitted levy" means the 
amount a district is permitted to levy for each tier, as 
determined by the department of education according to section 
275.125, subdivisions 7d and 7e.  
    Subd. 4.  [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 10 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.  [124A.04] [TRAINING AND EXPERIENCE INDEX.] 
    The training and experience index 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 into account in determining 
each teacher's salary.  
    (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.  
    Sec. 11.  [124A.06] [COST DIFFERENTIAL TIER AID.] 
    Subdivision 1.  [COST DIFFERENTIAL TIER ALLOWANCE.] "Cost 
differential tier allowance" means the amount of revenue per 
actual pupil unit used to compute the cost differential tier aid 
for a school year and levy for use in the same school year.  A 
district's cost differential tier allowance shall be the result 
of the following computation:  
    (a) Divide the amount of aid the district would have 
received for the 1980-1981 school year if Minnesota Statutes, 
1979 Supplement, section 124.224, as amended by section 3 of 
this article, had been effective for the 1980-1981 school year 
by the actual pupil units in the district in the 1980-1981 
school year.  
    (b) Divide the formula allowance for the school year by 
$1265.  
    (c) Multiply the result in clause (a) by the result in 
clause (b).  
    (d) Subtract 1.25 from the training and experience index, 
and multiply the difference by $300.  
    (e) Select the greater of the result in clause (d) or zero. 
    (f) Add the results of clauses (c) and (e).  
    Subd. 2.  [COST DIFFERENTIAL TIER REVENUE.] A district's 
cost differential tier revenue for each school year shall equal 
the cost differential tier allowance times the actual pupil 
units for that school year.  
    Subd. 3.  [COST DIFFERENTIAL TIER AID.] A district's cost 
differential tier aid shall be the result of the following 
computation:  
    (1) Subtract the amount of the cost differential tier levy 
from the amount of the cost differential tier revenue.  
    (2) Divide the actual cost differential tier levy by the 
permitted cost differential tier levy.  
     (3) Multiply the result in clause (1) by the result in 
clause (2). 
    Sec. 12.  [124A.08] [SECOND TIER AID WITH 100 PERCENT 
EQUALIZING FACTOR.] 
    Subdivision 1.  [SECOND TIER ALLOWANCE.] "Second tier 
allowance" means the amount of revenue per actual pupil unit 
used to compute the second tier aid for a particular school year 
and the corresponding levy for that school year.  The second 
tier allowance is $150.  
     Subd. 2.  [SECOND TIER REVENUE.] A district's second tier 
revenue for each school year shall equal the second tier 
allowance times its actual pupil units for that school year. 
     Subd. 3.  [SECOND TIER AID.] A district's second tier aid 
shall be the result of the following computation: 
     (1) Subtract the amount of the second tier levy from the 
amount of the second tier revenue. 
     (2) Divide the actual second tier levy by the permitted 
second tier levy. 
     (3) Multiply the result in clause (1) by the result in 
clause (2).  
    Sec. 13.  [124A.10] [THIRD TIER AID WITH 75 PERCENT 
EQUALIZING FACTOR.] 
    Subdivision 1.  [THIRD TIER ALLOWANCE.] "Third tier 
allowance" means the amount of revenue per actual pupil unit 
used to compute the third tier aid for a particular school year 
and the corresponding levy for that school year.  The third tier 
allowance is $100.  
    Subd. 2.  [THIRD TIER REVENUE.] A district's third tier 
revenue for each school year shall equal the third tier 
allowance times its actual pupil units for that school year.  
    Subd. 3.  [THIRD TIER AID.] A district's third tier aid 
shall be the result of the following computation:  
    (1) Subtract the amount of the third tier levy from the 
amount of the third tier revenue.  
    (2) Divide the actual third tier levy by the permitted 
third tier levy.  
    (3) Multiply the result in clause (1) by the result in 
clause (2).  
    Sec. 14.  [124A.12] [FOURTH TIER AID WITH 50 PERCENT 
EQUALIZING FACTOR.] 
    Subdivision 1.  [FOURTH TIER ALLOWANCE.] "Fourth tier 
allowance" means the amount of revenue per actual pupil unit 
used to compute the fourth tier aid for a particular school year 
and the corresponding levy for that school year.  The fourth 
tier allowance is $100.  
    Subd. 2.  [FOURTH TIER REVENUE.] A district's fourth tier 
revenue for each school year shall equal the fourth tier 
allowance times its actual pupil units for that school year.  
    Subd. 3.  [FOURTH TIER AID.] A district's fourth tier aid 
shall be the result of the following computation:  
    (1) Subtract the amount of the fourth tier levy from the 
amount of the fourth tier revenue.  
    (2) Divide the actual fourth tier levy by the permitted 
fourth tier levy.  
    (3) Multiply the result in clause (1) by the result in 
clause (2).  
    Sec. 15.  [124A.14] [FIFTH TIER AID WITH 50 PERCENT 
EQUALIZING FACTOR.] 
    Subdivision 1.  [FIFTH TIER ALLOWANCE.] "Fifth tier 
allowance" means the amount of revenue per actual pupil unit 
used to compute the fifth tier aid for a particular school year 
and the corresponding levy for that school year.  The fifth tier 
allowance shall equal the result of the following computation: 
     (a) Determine the revenue the district would have received 
for the 1984-1985 school year from grandfather revenue, 
replacement revenue, and low fund balance revenue, if the 
provisions of Minnesota Statutes 1982, sections 124.2123, 
124.2124, and 124.2128 had been effective for the 1984-1985 
school year.  
    (b) Determine the discretionary revenue the district would 
have received for the 1984-1985 school year if the provisions of 
Minnesota Statutes 1982, section 124.2125 had been effective for 
the 1984-1985 school year.  Assume the district had been 
entitled to and had levied the maximum allowable under section 
275.125, subdivisions 7a, and no aid or levy reductions were 
made according to section 275.125, subdivision 7c.  
    (c) Determine the amount of revenue equal to $25 times the 
total pupil units in the 1984-1985 school year.  
    (d) Add the results in clauses (a), (b), and (c).  
    (e) Determine the estimated revenue the district would 
receive for the 1984-1985 school year from the first to fourth 
tier revenue for the 1984-1985 school year.  
    (f) Subtract the result of clause (e) from the result of 
clause (d).  
     (g) Divide the amount in clause (f) by the 1984-1985 actual 
pupil units.  
    Subd. 2.  [FIFTH TIER REVENUE.] A district's fifth tier 
revenue for each school year shall equal the fifth tier 
allowance times its actual pupil units for that school year.  
    Subd. 3.  [FIFTH TIER AID.] A district's fifth tier aid 
shall be the result of the following computation:  
    (1) Subtract the amount of the fifth tier levy from the 
amount of the fifth tier revenue.  
    (2) Divide the actual fifth tier levy by the permitted 
fifth tier levy.  
    (3) Multiply the result in clause (1) by the result in 
clause (2).  
    Sec. 16.  [124A.16] [COMMENCEMENT OF TIER REVENUE.] 
    Subdivision 1.  [TOTAL TIER ALLOWANCE.] "Total tier 
allowance" shall mean the sum of the allowances from the tiers 
specified in sections 11, 12, 13, 14, and 15.  
     Subd. 2.  [PREVIOUS FORMULA AMOUNT.] "Previous formula 
amount" shall mean the revenue per actual pupil unit from the 
previous formula as specified in section 15, subdivision 1, 
clauses (a) and (b).  
     Subd. 3.  [MINIMUM INCREASE.] "Minimum increase" shall mean 
the amount equal to $25 times the total pupil units in the 
1984-1985 school year, divided by the actual pupil units in the 
1984-1985 school year.  
    Subd. 4.  The total revenue per actual pupil unit permitted 
from the tiers specified in sections 11, 12, 13, 14, and 15 
shall equal the sum of the previous formula amount plus the 
greater of: 
     (a) the minimum increase; or 
     (b) 25 percent of the difference between the total tier 
allowance and the previous formula amount in the 1984-1985 
school year, 50 percent of the difference in the 1985-1986 
school year, 75 percent of the difference in the 1986-1987 
school year, or 100 percent of the difference in the 1987-1988 
school year and subsequent school years.  
     Subd. 5.  The revenue permitted by this section shall be 
accorded to the lowest numbered tiers, beginning with the cost 
differential tier.  
     Subd. 6.  The permitted total revenue per actual pupil unit 
specified in subdivision 4 shall be determined prior to the 
reduction according to section 275.125, subdivision 7e.  
    Sec. 17.  Minnesota Statutes 1982, section 124.2132, 
subdivision 1, is amended to read: 
    Subdivision 1.  [UNDERLEVIES.] A district's basic 
foundation, grandfather, replacement, discretionary or low fund 
balance aid, as applicable, for any school year when the actual 
amount of the corresponding levy for use in that year is less 
than the permitted amount, shall be reduced by a percentage 
equal to the difference between the actual amount and the 
permitted amount, divided by the permitted amount.  This 
provision shall apply to basic foundation aid only for a school 
year when the actual amount of the basic maintenance levy for 
use in that year is less than 95 percent of the permitted amount.
    Sec. 18.  Minnesota Statutes 1982, section 275.125, 
subdivision 2e, is amended to read: 
    Subd. 2e.  [BASIC MAINTENANCE LEVY; DISTRICTS OFF THE 
FORMULA.] (1) In any year when the amount of the maximum levy 
limitation under subdivision 2a for any district, exceeds the 
product of the district's foundation aid formula allowance for 
the year in which the levy is recognized as revenue times the 
estimated number of actual and AFDC pupil units for that 
district for that school year, the levy limitation for that 
district under subdivision 2a shall be limited to the greater of 
the dollar amount of the levy the district certified in 1977 
under Minnesota Statutes 1978, Section 275.125, subdivision 2a, 
clause (1), or the following difference but not to exceed the 
levy limitation under subdivision 2a: 
    (a) the sum of 
    (i) the product of the district's foundation aid formula 
allowance for the school year in which the levy is recognized as 
revenue, times the estimated number of actual and AFDC pupil 
units for that district for that school year, plus 
    (ii) the amount of special state aids of chapter 124 
receivable for the same school year, excluding aid authorized in 
sections 124.2137 and 124.646, plus 
    (iii) the amount of state payments on behalf of the 
district for the same school year authorized in sections 354.43, 
subdivision 1; 354A.12, subdivision 2; and 355.46, subdivision 
3, clause (b), less 
    (b) the estimated amount of any payments which would reduce 
the district's foundation aid entitlement as provided in section 
124.2132, subdivision 4 in the school year in which the levy is 
recognized as revenue. 
    (1) However, for fiscal year 1985, the amounts in clauses 
(a)(ii) and (a)(iii) shall be multiplied by one-sixth; for 
fiscal year 1986, the amounts in clauses (a)(ii) and (a)(iii) 
shall be multiplied by one-third; for fiscal year 1987, the 
amounts in clauses (a)(ii) and (a)(iii) shall be multiplied by 
one-half; for fiscal year 1988, the amounts in clauses (a)(ii) 
and (a)(iii) shall be multiplied by two-thirds; and for fiscal 
year 1989, the amounts in clauses (a)(ii) and (a)(iii) shall be 
multiplied by five-sixths.  
    (2) A levy made by a district pursuant to this subdivision 
shall be construed to be the levy made by that district pursuant 
to subdivision 2a, for purposes of statutory cross-reference. 
    Sec. 19.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 7d.  [TIER LEVIES.] (1) [COST DIFFERENTIAL TIER 
LEVY.] In 1983 and each year thereafter, a district may levy for 
its cost differential tier revenue an amount not to exceed the 
lesser of its cost differential tier revenue or the result of 
the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by the equalizing 
factor for the school year to which the levy is attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
cost differential tier revenue for the school year to which the 
levy is attributable.  
    (2) [SECOND TIER LEVY.] In 1983 and each year thereafter, a 
district may levy for its second tier revenue an amount not to 
exceed the lesser of its second tier revenue or the result of 
the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by the equalizing 
factor for the school year to which the levy is attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
second tier revenue for the school year to which the levy is 
attributable.  
    (3) [THIRD TIER LEVY.] In 1983 and each year thereafter, a 
district may levy for its third tier revenue an amount not to 
exceed the lesser of its third tier revenue or the result of the 
following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 75 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the district's 
third tier revenue for the school year to which the levy is 
attributable.  
    (4) [FOURTH TIER LEVY.] In 1983 and each year thereafter, a 
district may levy for its fourth tier revenue an amount not to 
exceed the lesser of its fourth tier revenue or the result of 
the following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 50 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the fourth tier 
revenue for the school year to which the levy is attributable.  
    (5) [FIFTH TIER LEVY.] In 1983 and each year thereafter, a 
district may levy for its fifth tier revenue an amount not to 
exceed the lesser of its fifth tier revenue or the result of the 
following computation:  
    (i) Divide the adjusted assessed valuation for the year 
preceding the year the levy is certified, by the total pupil 
units for the year to which the levy is attributable.  
    (ii) Divide the result in clause (i) by 50 percent of the 
equalizing factor for the school year to which the levy is 
attributable.  
    (iii) Multiply the result in clause (ii) by the fifth tier 
revenue for the school year to which the levy is attributable.  
    Sec. 20.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 7e.  [SECOND TIER LEVY FUND BALANCE.] Beginning with 
the 1983 payable 1984 levy, for a district where the net 
unappropriated operating fund balance as of the June 30 before 
the levy is certified exceeds $500 per total pupil unit in the 
year when the levy is certified, the second tier levy shall be 
reduced by the amount of the excess times the lesser of (a) one, 
or (b) the ratio of the district's EARC valuation for the 
preceding year per total pupil unit in the school year for which 
the levy is attributable, to the equalizing factor.  Beginning 
with the 1984-1985 school year, the second tier aid for the year 
when that levy is used shall be reduced by any amount of the 
excess which is not subtracted from the levy.  
    Sec. 21.  Minnesota Statutes 1982, section 275.125, 
subdivision 9, is amended to read: 
    Subd. 9.  [LEVY REDUCTIONS; TACONITE.] (1) Reductions in 
levies pursuant to subdivision 10 of this section, and section 
273.138, shall be made prior to the reductions in clause (2). 
    (2) Notwithstanding any other law to the contrary, 
districts which received payments pursuant to sections 294.21 to 
294.26; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
298.405; 298.51 to 298.67; 477A.15; and any law imposing a tax 
upon severed mineral values, or under any other law distributing 
proceeds in lieu of ad valorem tax assessments on copper or 
nickel properties, or recognized revenue pursuant to section 
477A.15; shall not include a portion of these aids in their 
permissible levies pursuant to those sections, but instead shall 
reduce the permissible levies authorized by this section by the 
greater of the following: 
    (a) an amount equal to 50 percent of the total dollar 
amount of the payments received pursuant to those sections or 
revenue recognized pursuant to section 477A.15 in the previous 
fiscal year; or 
     (b) an amount equal to the total dollar amount of the 
payments received pursuant to those sections or revenue 
recognized pursuant to section 477A.15 in the previous fiscal 
year less the product of the same dollar amount of payments or 
revenue times the ratio of the maximum levy allowed the district 
under subdivision 2a, to the total levy allowed the district 
under this section in the year in which the levy is certified. 
    (3) No reduction pursuant to this subdivision shall reduce 
the levy made by the district pursuant to subdivision 2a, to an 
amount less than the amount raised by a levy of ten 12.5 mills 
times the adjusted assessed valuation of that district for the 
preceding year as determined by the equalization aid review 
committee.  The amount of any increased levy authorized by 
referendum pursuant to subdivision 2d shall not be reduced 
pursuant to this subdivision.  The amount of any levy authorized 
by subdivision 4, to make payments for bonds issued and for 
interest thereon, shall not be reduced pursuant to this 
subdivision.  The amount of any levy authorized by subdivision 
7a shall not be reduced pursuant to this subdivision.  
    (4) Before computing the reduction pursuant to this 
subdivision of the capital expenditure levy authorized by 
subdivision 11a, and the community service levy authorized by 
subdivision 8, the commissioner shall ascertain from each 
affected school district the amount it proposes to levy for 
capital expenditures pursuant to subdivision 11a and for 
community services pursuant to subdivision 8.  The reduction of 
the capital expenditure levy and the community services levy 
shall be computed on the basis of the amount so ascertained. 
     (5) Notwithstanding any law to the contrary, any amounts 
received by districts in any fiscal year pursuant to sections 
294.21 to 294.26; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 
298.396; 298.405; 298.51 to 298.67; or any law imposing a tax on 
severed mineral values, or under any other law distributing 
proceeds in lieu of ad valorem tax assessments on copper or 
nickel properties; and not deducted from foundation aid pursuant 
to section 124.2132, subdivision 5, clause (2), and not applied 
to reduce levies pursuant to this subdivision shall be paid by 
the district to the commissioner of finance in the following 
amount on the designated date:  on or before by March 15 of each 
year, 100 percent of the amount required to be subtracted from 
the previous fiscal year's foundation aid pursuant to section 
124.2128 124.2132, subdivision 5, which is in excess of the 
foundation aid earned for that fiscal year.  The commissioner of 
finance shall deposit any amounts received pursuant to this 
clause in the taconite property tax relief fund in the state 
treasury, established pursuant to section 16A.70 for purposes of 
paying the taconite homestead credit as provided in section 
273.135. 
    Sec. 22.  [INSTRUCTION TO THE REVISOR.] 
    In the next method of updating Minnesota Statutes, the 
revisor of statutes, in consultation with the education staff of 
house research and senate research and counsel, is requested to 
codify the appropriate provisions of this act, appropriate parts 
of section 275.125, and the sections of chapter 124 relating to 
foundation aids in a chapter of Minnesota Statutes.  
    Sec. 23.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, sections 124.11, 
subdivision 1 and 275.125, subdivisions 6b, 6c, 6d, 7a, and 7c 
are repealed.  
    Subd. 2.  Minnesota Statutes 1982, sections 124.2123; 
124.2124; 124.2125; and 124.2128 are repealed.  
    Subd. 3.  [EFFECT.] The repeal of these sections shall not 
affect the right of a school district to receive nor the 
obligation of the commissioner of education to pay aids 
attributable to the 1983-1984 school year and payable in fiscal 
year 1985 pursuant to the sections repealed.  
    Sec. 24.  [APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [FOUNDATION AID.] For foundation aid there is 
appropriated:  
    $585,027,000.....1984, 
    $555,591,000.....1985.  
    The appropriation for 1984 includes $84,895,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $500,132,000 
for aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $89,315,000 for aid for 
fiscal year 1984 payable in fiscal year 1985, and $466,276,000 
for aid for fiscal year 1985 payable in fiscal year 1985.  
    Subd. 3.  [CANCELLATION.] Any unexpended balance remaining 
from the appropriations in this section for 1984 shall cancel 
and shall not be available for the second year of the biennium. 
None of the amounts appropriated in this section shall be 
expended for a purpose other than the purpose indicated.  
    Sec. 25.  [EFFECTIVE DATE.] 
    Sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 21, and 23, 
subdivision 2, are effective July 1, 1984. 

                                ARTICLE 2
TRANSPORTATION AID
    Section 1.  Minnesota Statutes 1982, section 123.37, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [TRANSPORTATION; FUEL.] Notwithstanding the 
provisions of subdivision 1 or section 471.345, a contract for 
the transportation of school children, or a contract for the 
purchase, by June 30, 1983, of petroleum heating fuel or fuel 
for district owned vehicles may be made by direct negotiation, 
by obtaining two or more written quotations for the service when 
possible, or upon sealed bids.  At least 30 days before awarding 
a directly negotiated contract, the school district shall, by 
published notice, request quotations for the service to be 
provided.  All quotations obtained shall be kept on file for a 
period of at least one year after receipt thereof. If a contract 
is made by direct negotiation, negotiations all quotations shall 
be open to the public information.  If a contract is made upon 
sealed bids, the procedure for advertising and awarding bids 
shall conform to the provisions of subdivision 1 except as 
otherwise provided in this subdivision. 
    Notwithstanding the provisions of subdivision 1 or section 
574.26, a performance bond shall be required of a contractor on 
a contract for the transportation of school children only when 
and in the amount deemed necessary by and at the discretion of 
the school board. 
    Sec. 2.  Minnesota Statutes 1982, section 124.225, is 
amended to read: 
     124.225 [TRANSPORTATION AID ENTITLEMENT.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
     (a) "FTE" means a transported full time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
     (b) "Authorized cost for regular transportation" means the 
sum of: 
     (1) all expenditures for transportation in the regular 
category, as defined in clause (e)(1), for which aid is 
authorized in section 124.223, plus 
     (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 12-1/2 percent per year of 
the cost of the fleet, plus 
     (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
     (4) beginning in fiscal year 1984, an amount equal to one 
year's depreciation on the district's type three school buses, 
as defined in section 169.44, subdivision 15, which were 
purchased after July 1, 1982 for authorized transportation of 
pupils, with the prior approval of the commissioner, computed on 
a straight line basis at the rate of 20 percent per year of the 
cost of the type three school buses.  
     (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education, and adjusted pursuant 
to subdivision 7a. 
     (d) "Aid entitlement per FTE" means the adjusted authorized 
predicted cost per FTE, inflated pursuant to subdivision 7b.  
     (e) "Transportation category" means a category of 
transportation service provided to pupils.  Each category 
includes transportation provided during the regular school year 
and in conjunction with a state board approved summer school 
program.  For purposes of this section, transportation 
categories are as follows: 
     (1) Regular transportation is transportation services 
provided under section 124.223, clauses (1) and (2), excluding 
transportation between schools under section 124.223, clause (1);
     (2) During-day transportation is transportation services 
between schools provided under section 124.223, clause (1), and 
transportation services provided under section 124.223, clauses 
(3) and (9), and transportation services provided under section 
124.223, clause (6), excluding transportation provided for 
pupils attending shared time special education classes; 
     (3) Handicapped transportation is transportation services 
for pupils attending shared time special education classes 
provided under section 124.223, clause (6), and transportation 
services provided under section 124.223, clause (4), excluding 
board and lodging and excluding transportation to and from board 
and lodging facilities; 
     (4) Board and lodging is services provided, in lieu of 
transportation, under section 124.223, clauses (4) and (5); 
     (5) To and from board and lodging facility transportation 
is transportation services to and from board and lodging 
facilities provided under section 124.223, clauses (4) and (7); 
     (6) Nonpublic health, guidance and counseling 
transportation is transportation services provided under section 
124.223, clause (10).; 
    (7) Nonregular transportation is transportation services 
provided between schools under section 124.223, clause (1); and 
transportation services provided under section 124.223, clauses 
(3), (4), (5), (6), (7), (9), and (10).  
    (f) "Pupil weighting factor" means the ratio of the actual 
district average cost per FTE in a particular transportation 
category in the base year to the actual district average cost 
per FTE in the regular transportation category in the base year. 
    (g) "Weighted FTE's" means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
    (h) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
    (i) "Percent excess handicapped FTE's transported" means 
the result of the following computation for the current year:  
    one, minus the product of 
    (1) the ratio of the number of FTE pupils transported in 
the handicapped category in the state to the number of FTE 
pupils transported in the handicapped category in the district; 
times 
     (2) the ratio of the number of FTE pupils transported in 
the regular category in the district to the number of FTE pupils 
transported in the regular category in the state.  
     (j) "Current year" means the school year for which aid will 
be paid.  
     (k) "Base year" means the second school year preceding the 
school year for which aid will be paid.  
     (l) "Base cost" means the authorized regular transportation 
cost per FTE in the base year in the regular transportation 
category, excluding summer school transportation.  
     (m) "Predicted base cost" means the base cost as predicted 
by subdivision 3.  
    Subd. 1a.  [WEIGHTING FACTORS.] For each school year, in 
computing transportation aid, the department of education shall 
establish as needed the pupil weighting factors for each 
transportation category for each district using transportation 
cost data for the second prior school year.  The department 
shall use the statewide pupil weighting factor for any 
transportation category for which a district had no experience 
during the second prior school year. 
    Subd. 3.  [FORMULA.] For each school year, the state shall 
pay to each school district for all pupil transportation and 
related services for which the district is authorized by law to 
receive state aid an amount determined according to this 
section.  The department of education shall conduct multiple 
regression analysis using the terms specified in subdivision 4a, 
for the 1982-1983 and 1983-1984 school years, and using the 
terms specified in subdivision 4b for the 1984-1985 school year 
and each school year thereafter to predict the base cost for 
each district.  Each year a formula shall be derived based upon 
the regression analysis, but excluding the factors factor 
described in subdivision 4a, clauses (8), clause (9), and (10), 
except that in the 1982-1983 formula for the 1983-1984 school 
year, these clauses shall not be excluded.  This Each year the 
formula shall be used to determine a predicted base cost for 
each district.  The amount determined for each district shall be 
adjusted according to the provisions of subdivisions 7a and 7b. 
    Subd. 4a.  [FORMULA TERMS, 1983-1984.] To predict the base 
cost for each district pursuant to subdivision 3 for the 
1983-1984 school year, the multiple regression formula shall use 
the following terms for each district:  
    (1) The district's average daily membership; 
    (2) The reciprocal of the district's average daily 
membership; 
    (3) The logarithm of the number of authorized FTE's per 
square mile transported by the district in the regular 
transportation category; 
    (4) The percentage of the district's square mile area which 
is classified by the commissioner of energy, planning and 
development as water-covered, marshland, or extractive;  
    (5) (4) The district's administrative overhead for 
transportation per authorized FTE transported in the regular 
transportation category;  
    (6) (5) The number of schools to which pupils are 
transported in the regular transportation category, either 
within or outside the district, divided by the number of 
authorized FTE's transported in the regular transportation 
category;  
    (7) (6) Whether the district is non-rural, based upon 
criteria established by the department of education;  
    (8) (7) Whether the district contracts for bus service, or 
transports pupils only on district-owned buses;  
    (9) (8) The percentage of all regular transportation 
category bus routes using buses that are not owned by the 
district, if that percentage is not 100 percent;  
    (10) (9) Whether the district operates a special bus to 
transport pupils to home from school who are involved in 
after-school activities.  
    Subd. 4b. [FORMULA TERMS, 1984-1985 AND AFTER.] To predict 
the logarithm of the base cost for each district pursuant to 
subdivision 3 for the 1984-1985 school year and each year 
thereafter, the multiple regression formula shall use the 
following terms for each district: 
     (1) The logarithm of the lesser of (a) the number of 
authorized FTE's per square mile transported by the district in 
the regular transportation category, or (b) 200; 
     (2) Whether the district is non-rural, based upon criteria 
established by the department of education; and 
     (3) The logarithm of the percentage of all FTE's 
transported in the regular category using buses that are not 
owned by the district.  
    Subd. 7a.  [BASE YEAR SOFTENING FORMULA.] (1) Each 
district's predicted base cost determined for each school year 
according to subdivision 3 shall be averaged with the base cost 
for that district for that year to determine the district's 
adjusted authorized predicted cost per FTE for that year.  
    (2) Notwithstanding clause (1), For fiscal year 1983, the 
each district's predicted base cost determined according to 
subdivision 3 shall be adjusted as provided in this clause to 
determine adjusted authorized predicted cost per FTE for the 
base school year.  
     (a) If the predicted base cost exceeds the base cost, the 
predicted base cost shall be decreased by 50 percent of the 
first $40 of difference between the base cost and the predicted 
base cost; 70 percent of the next $40 of difference; and 90 
percent of any difference which exceeds $80, to determine the 
adjusted authorized predicted cost per FTE.  
    (b) If the predicted base cost is less than the base cost, 
the predicted base cost shall be increased by 50 percent of the 
first $40 of difference between the base cost and the predicted 
base cost; 70 percent of the next $40 of difference; and 90 
percent of any difference which exceeds $80, to determine the 
adjusted authorized predicted cost per FTE.  
    (2) For fiscal year 1984 and each year thereafter, each 
district's predicted base cost determined for each school year 
according to subdivision 3 shall be adjusted as provided in this 
clause to determine the district's adjusted authorized predicted 
cost per FTE for that year.  
    (a) If the base cost of the district is within five percent 
of the predicted base cost, the district's adjusted authorized 
predicted cost per FTE shall be equal to the base cost.  
    (b) If the base cost of the district is more than five 
percent greater than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 105 
percent of the predicted base cost, plus 40 percent of the 
difference between (i) the base cost, and (ii) 105 percent of 
the predicted base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be less than 80 
percent of base cost.  
    (c) If the base cost of the district is more than five 
percent less than the predicted base cost, the district's 
adjusted authorized predicted cost per FTE shall be equal to 95 
percent of the predicted base cost, minus 40 percent of the 
difference between (i) 95 percent of predicted base cost, and 
(ii) the base cost.  However, in no case shall a district's 
adjusted authorized predicted cost per FTE be more than 120 
percent of base cost.  
    Subd. 7b.  [INFLATION FACTORS.] The adjusted authorized 
predicted cost per FTE determined for a district under 
subdivision 7a for the base year shall be increased by 22 
percent to determine the district's aid entitlement per FTE for 
the 1982-1983 school year, by 11.7 percent to determine the 
district's aid entitlement per FTE for the 1983-1984 school 
year, and by 10.3 percent to determine the district's aid 
entitlement per FTE for the 1984-1985 school year.  
    Subd. 8a.  [AID.] For the 1982-1983 and 1983-1984 school 
years, a district's transportation aid shall be equal to the sum 
of its basic transportation aid pursuant to subdivision 8b, its 
excess handicapped transportation aid pursuant to subdivision 
8c, its handicapped board and lodging aid pursuant to 
subdivision 8d, its to and from board and lodging aid pursuant 
to subdivision 8e, its nonpublic support services transportation 
aid pursuant to subdivision 8f, its during-day transportation 
aid pursuant to subdivision 8g, and its closed-school 
transportation aid pursuant to subdivision 8h, minus the amount 
raised by two mills times the adjusted assessed valuation which 
is used to compute the transportation levy limitation for the 
levy attributable to that school year.  For the 1983-1984 school 
year transportation aid for a district which contracted for 
pupil transportation services in the 1981-1982 school year shall 
be reduced by an amount equal to $18 times the number of FTE 
pupils transported on contracted school buses in the base year 
in the regular transportation category.  A district may levy 
less than the amount raised by two mills.  Transportation aid 
shall be computed as if the district had levied the amount 
raised by two mills.  If the total appropriation for 
transportation aid in any fiscal year after 1982 is insufficient 
to pay all districts the full amount of aid earned, the 
department of education shall reduce each district's aid in 
proportion to the number of resident pupils in average daily 
membership in the district to the state total average daily 
membership, and shall reduce the aid entitlement of off-formula 
districts in the same proportion.  Aid for the 1982-1983 and 
1983-1984 school years shall also be reduced by the following 
amount:  the product of 
     (a) the number of nonhandicapped secondary pupils 
transported in the base year who live between one and two miles 
from the public school which they could attend or the nonpublic 
school actually attended, times 
     (b) 1.5, divided by the average distance to school for all 
FTE's transported in the district in the regular transportation 
category in the base year, times 
    (c) the district's aid entitlement per FTE determined 
according to subdivision 7b, times the ratio of average daily 
membership used in subdivision 8b.  
     For the 1984-1985 school year and thereafter, a district's 
transportation aid shall be equal to the sum of its basic 
transportation aid pursuant to subdivision 8b, its nonregular 
transportation aid pursuant to subdivision 8i, and its 
nonregular transportation levy equalization aid pursuant to 
subdivision 8j, minus its contracted services and reduction 
pursuant to subdivision 8k, minus the amount raised by 1.75 
mills times the adjusted assessed valuation which is used to 
compute the transportation levy limitation for the levy 
attributable to that school year.  A district may levy less than 
the amount raised by 1.75 mills.  Transportation aid shall be 
computed as if the district had levied the amount raised by 1.75 
mills.  
     If the total appropriation for transportation aid for any 
fiscal year is insufficient to pay all districts the full amount 
of aid earned, the department of education shall reduce each 
district's aid in proportion to the number of resident pupils in 
average daily membership in the district to the state total 
average daily membership, and shall reduce the aid entitlement 
of off-formula districts in the same proportion.  
    Subd. 8b.  [BASIC AID COMPUTATION.] For the 1982-1983 and 
1983-1984 school years, a district's basic transportation aid 
pursuant to this section for the school year shall equal the 
district's aid entitlement per FTE determined according to 
subdivision 7b times the total number of authorized weighted 
FTE's transported in the regular and handicapped transportation 
categories in the district in the base year times the ratio of 
average daily membership in the district in the current year to 
the average daily membership in the district in the base year. 
     For the 1984-1985 school year and thereafter, a district's 
basic transportation aid pursuant to this section for each 
school year shall equal the district's aid entitlement per FTE 
determined according to subdivision 7b times the total number of 
authorized FTE's transported in the regular and handicapped 
categories category in the district in the current school year.  
    Subd. 8c.  [EXCESS HANDICAPPED AID.] (a) For each the 
1982-1983 and 1983-1984 school year years, the state shall pay 
aid for the excess costs of providing transportation for 
handicapped students as provided in this subdivision to a 
district where, in the current school year, the ratio of FTE's 
transported in the handicapped category to the total number of 
FTE's transported in the regular transportation category exceeds 
the same ratio for the state as a whole.  
     (b) This aid shall equal:  
      the product of the percent excess handicapped FTE's 
transported, times the difference between 
     (1) the district's actual cost for transportation of all 
pupils in the handicapped category in the current year, and 
     (2) the product of 
     (i) the district's aid entitlement per FTE determined 
according to subdivision 7b, times 
    (ii) the number of FTE's transported in the handicapped 
category in the district in the current year.  
    Provided that for the 1982-1983 and 1983-1984 school years, 
the number in (2)(ii) above shall be replaced by the following 
computation:  the product of the number of FTE's transported in 
the handicapped category in the district in the base year, times 
its pupil weighting factor for the handicapped category, times 
the ratio of average daily membership in the district in the 
current year to average daily membership in the district in the 
base year.  
     Excess handicapped transportation aid authorized in this 
subdivision shall not be paid after the 1983-1984 school year. 
    Subd. 8d.  [HANDICAPPED BOARD AND LODGING AID.] For board 
and lodging of handicapped pupils, each district shall receive 
aid equal to the product of the number of FTE pupils boarded and 
lodged in the current year in the district in this 
transportation category, times the average of 
     (a) the state average board and lodging cost per FTE pupil 
boarded and lodged in the base year, times the inflation factor 
for that year prescribed in subdivision 7b; and 
     (b) the district's actual cost per FTE pupil boarded and 
lodged in the current year.  
     Aid for board and lodging of handicapped pupils authorized 
in this subdivision shall not be paid after the 1983-1984 school 
year. 
    Subd. 8e.  [TO AND FROM BOARD AND LODGING.] For 
transportation of handicapped pupils to and from board and 
lodging facilities, the state shall pay aid to each district for 
each year equal to the lesser of 
     (a) the sum of the distance in miles from the home of each 
pupil transported in this category to the board and lodging 
facility, times 36, times 24 cents; or 
     (b) the average of the amount in (a) and the district's 
actual cost for all transportation in this category in the 
current year.  
     Aid for transportation of handicapped pupils to and from 
board and lodging facilities authorized in this subdivision 
shall not be paid after the 1983-1984 school year.  
    Subd. 8f.  [NONPUBLIC SUPPORT SERVICES AID.] For the 
1982-1983 and 1983-1984 school years, a district's nonpublic 
support services transportation aid shall equal the district's 
aid entitlement per FTE determined according to subdivision 7b, 
times its pupil weighting factor for the nonpublic support 
services transportation category, times the number of FTE pupils 
transported in the nonpublic support services category in the 
district in the base year, times the ratio of average daily 
membership in the district in the current year to average daily 
membership in the district in the base year.  For the 1984-1985 
school year and thereafter, a district's nonpublic support 
services transportation aid shall equal the district's aid 
entitlement per FTE determined according to subdivision 7b, 
times its pupil weighting factor for the nonpublic support 
services transportation category, times the number of FTE's 
transported in that category in the current year.  
     Nonpublic support services aid authorized in this 
subdivision shall not be paid after the 1983-1984 school year.  
    Subd. 8g.  [DURING-DAY TRANSPORTATION AID.] For the 
1982-1983 and 1983-1984 school years, a district's during-day 
transportation aid shall equal the district's aid entitlement 
per FTE determined according to subdivision 7b, times its pupil 
weighting factor for the during-day transportation category, 
times the number of FTE's transported in the during-day 
transportation category in the base year, times the ratio of 
average daily membership in the district in the current year to 
average daily membership in the district in the base year.  For 
the 1984-1985 school year and thereafter, a district's 
during-day transportation aid shall equal the district's aid 
entitlement per FTE determined according to subdivision 7b, 
times its pupil weighting factor for the during-day 
transportation category, times the number of FTE's transported 
in the during-day transportation category in the current year.  
     During-day transportation aid authorized in this 
subdivision shall not be paid after the 1983-1984 school year.  
    Subd. 8h.  [CLOSED-SCHOOL TRANSPORTATION AID.] For the 
1982-1983 and 1983-1984 school years, a district's closed-school 
transportation aid shall equal the district's aid entitlement 
per FTE determined according to subdivision 7b, times the number 
of authorized FTE's transported in the regular category in the 
current school year who were not transported in the base year 
and would not have been transported in the current year but for 
school closings or altered school attendance boundaries.  The 
total amount of transportation aid computed pursuant to this 
subdivision in each year shall not exceed $2,000,000.  If this 
amount is insufficient to pay each qualifying district its full 
amount of aid pursuant to this subdivision, this amount shall be 
prorated among all qualifying districts in proportion to each 
district's number of FTE's for whom aid is claimed under this 
subdivision. 
     Closed-school transportation aid authorized in this 
subdivision shall not be paid after the 1983-1984 school year.  
    Subd. 8i.  [NONREGULAR TRANSPORTATION AID.] For the 
1984-1985 school year and each year thereafter, a district's 
nonregular transportation aid shall be determined pursuant to 
this subdivision.  Nonregular transportation aid shall equal (a) 
20 percent of the first $10 of actual cost in the current year 
for nonregular transportation services per total pupil unit, 
plus 40 percent of the next $10 of actual cost in the current 
year for nonregular transportation services per total pupil 
unit, plus 60 percent of the actual cost in the current year for 
nonregular transportation services per total pupil unit which 
exceeds $20, times (b) the number of total pupil units in the 
district in the current year.  
    Subd. 8j.  [NONREGULAR TRANSPORTATION LEVY EQUALIZATION 
AID.] For the 1984-1985 school year and each year thereafter, a 
district's nonregular transportation levy equalization aid shall 
be determined pursuant to this subdivision.  
    (a) Unreimbursed nonregular transportation revenue shall 
equal the actual cost in the current year for nonregular 
transportation services, minus the district's nonregular 
transportation aid computed pursuant to subdivision 8i.  
    (b) The nonregular transportation levy is the levy 
authorized by section 275.125, subdivision 5c.  
    (c) Nonregular transportation levy equalization aid for a 
district shall equal the product of (1) its unreimbursed 
nonregular transportation revenue, minus the nonregular 
transportation levy limitation for that year, times (2) the 
ratio of the district's actual nonregular transportation levy to 
its nonregular transportation levy limitation.  
    Subd. 8k.  [CONTRACTED SERVICES AID REDUCTION.] For the 
1984-1985 school year and each year thereafter, each 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.  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.  
    Subd. 9.  [DISTRICT REPORTS.] Each district shall report 
data to the department as required by the department to 
implement the transportation aid formula.  If a district's final 
transportation aid payment is adjusted after the final aid 
payment has been made to all districts, the adjustment shall be 
made by increasing or decreasing the district's aid for the next 
fiscal year.  
    Subd. 10.  [DEPRECIATION.] Any school district which owns 
school buses or mobile units shall transfer annually from the 
unappropriated fund balance account in its transportation fund 
to the appropriated fund balance account for bus purchases in 
its transportation fund at least an amount equal to 12-1/2 
percent of the original cost of each type one or type two bus or 
mobile unit until the original cost of each type one or type two 
bus or mobile unit is fully amortized, plus 20 percent of the 
original cost of each type three bus included in the district's 
authorized cost under the provisions of subdivision 1, clause 
(b)(4), until the original cost of each type three bus is fully 
amortized, plus 33-1/3 percent of the cost to the district as of 
July 1 of each year for school bus reconditioning done by the 
department of corrections until the cost of the reconditioning 
is fully amortized; provided, if the district's transportation 
aid is reduced pursuant to subdivision 8a because the 
appropriation for that year is insufficient, this amount shall 
be reduced in proportion to the reduction pursuant to 
subdivision 8a as a percentage of the sum of 
    (1) the district's total transportation aid without the 
reduction pursuant to subdivision 8a, plus 
    (2) for fiscal years 1983 and 1984, an amount equal to two 
mills times the adjusted assessed valuation of the district 
which is used to compute the levy limitation for the levy 
attributable to that year, or for fiscal year 1985 and 
thereafter 1.75 mills times the adjusted assessed valuation of 
the district for the preceding year.  Any school district may 
transfer any amount from the unappropriated fund balance account 
in its transportation fund to any other operating fund or to the 
appropriated fund balance account for bus purchases in its 
transportation fund. 
    Subd. 11.  [PAYMENT SCHEDULE THROUGH 1982.] Except as may 
be otherwise authorized by the commissioner to accommodate a 
flexible school year program, for fiscal years through 1982, the 
state shall pay to each school district 30 percent of its 
estimated school transportation aid for the fiscal year on or 
before each of the following dates:  August 31, December 31, and 
March 31.  The final aid distribution to each district shall be 
made on or before October 31 of the following fiscal year.  
    Subd. 12.  [PAYMENT SCHEDULE.] Except as may be otherwise 
authorized by the commissioner to accommodate a flexible school 
year program, starting in fiscal year 1983, the state shall pay 
each school district its estimated school transportation aid for 
the fiscal year according to the following schedule:  30 percent 
by August 31; 30 percent by December 31; and 25 percent by March 
31.  The final aid distribution to each district shall be made 
by October 31 of the following fiscal year. 
    Sec. 3.  Minnesota Statutes 1982, section 275.125, 
subdivision 5, is amended to read: 
    Subd. 5.  [BASIC TRANSPORTATION LEVY.] For school 
transportation services, a school district may levy an amount 
not to exceed the amount raised by a levy of two 1.75 mills 
times the adjusted assessed valuation of the taxable property of 
the district for the preceding year.  A district may also levy 
under this subdivision for the amount necessary to eliminate any 
projected deficit in the appropriated fund balance account for 
bus purchases in its transportation fund as of June 30 in the 
school year when the levy is recognized as revenue.  A district 
which contracts for pupil transportation services may also levy 
an amount equal to $18 times the number of FTE pupils 
transported on contracted school buses in the preceding school 
year in the regular transportation category, which shall be 
placed in the transportation fund and used for any lawful 
purpose.  A district may levy an amount equal to the estimated 
cost, in the school year beginning in the year in which the levy 
is certified, of transporting secondary pupils to and from 
school who live more than one mile but less than two miles from 
the public school which they could attend or from a nonpublic 
school actually attended.  A district may also levy for 
transportation costs or other related services which are 
necessary because of extraordinary traffic hazards for the next 
school year.  Levies authorized by this subdivision shall be 
computed according to procedures established by the commissioner.
    Sec. 4.  Minnesota Statutes 1982, section 275.125, 
subdivision 5b, is amended to read: 
    Subd. 5b.  [TRANSPORTATION LEVY OFF-FORMULA ADJUSTMENT.] In 
any fiscal year in which years 1983 and 1984 if the 
transportation levy in a district attributable to that each 
fiscal year of two mills times the adjusted assessed valuation 
of the district exceeds the transportation aid computation under 
section 124.225, subdivisions 8b, 8c, 8d, 8e, 8f, 8g, and 8h, 
the district's transportation levy limitation shall be adjusted 
as provided in this subdivision.  In the year following that 
each of those fiscal year years, the district's transportation 
levy shall be reduced by an amount equal to the difference 
between (1) two mills times the adjusted assessed valuation of 
the district, and (2) the sum of the district's transportation 
aid computation pursuant to section 124.225, subdivisions 8b, 
8c, 8d, 8e, 8f, 8g, and 8h, less the amount of any aid reduction 
due to an insufficient appropriation as provided in section 
124.225, subdivision 8a.  
    In fiscal year 1985 and each fiscal year thereafter, if the 
basic transportation levy in a district attributable to a 
particular fiscal year of 1.75 mills times the adjusted assessed 
valuation of the district exceeds the transportation aid 
computation under section 124.225, subdivisions 8b, 8i, 8j, and 
8k, the district's levy limitation shall be adjusted as provided 
in this subdivision.  In the year following each fiscal year, 
the district's transportation levy shall be reduced by an amount 
equal to the difference between (1) 1.75 mills times the 
adjusted assessed valuation of the district, 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 
article 1, section 7, subdivision 2, less the amount of any aid 
reduction due to an insufficient appropriation as provided in 
section 124.225, subdivision 8a.  
     For the levies certified in 1983 and 1984, the following 
additional amount shall be subtracted:  
    the product of 
    (a) the number of nonhandicapped secondary pupils 
transported in the base year who live between one and two miles 
from the public school which they could attend or the nonpublic 
school actually attended, times 
    (b) 1.5, divided by the average distance to school for all 
FTE's transported in the district in the regular transportation 
category in the base year, times 
     (c) the district's aid entitlement per FTE determined 
according to section 124.225, subdivision 7b, times the ratio of 
average daily membership in the district in the current year to 
average daily membership in the district in the base year.  
    Sec. 5.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision 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 not exceed the product of:  
    (a) the district's unreimbursed nonregular transportation 
revenue determined pursuant to section 124.225, subdivision 8j, 
clause (a), times 
    (b) the lesser of 
    (i) one, or 
    (ii) the ratio of the district's adjusted assessed 
valuation for the preceding year per total pupil unit in the 
school year to which the levy is attributable, to the equalizing 
factor for the school year to which the levy is attributable.  
    Sec. 6.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 5d.  [EXCESS TRANSPORTATION LEVY.] A school district 
may also make an excess transportation levy pursuant to this 
clause, which shall be the sum of:  
    (a) the district's actual cost in the school year after the 
year in which the excess transportation levy is certified for 
transportation to and from school of secondary pupils who live 
more than one mile but less than two miles from the public 
school which they could attend or from a nonpublic school 
actually attended, plus 
    (b) the district's actual cost in the school year after the 
year in which the excess transportation levy is certified for 
transportation costs or other related services which are 
necessary because of extraordinary traffic hazards; plus 
    (c) the amount necessary to eliminate any projected deficit 
in the appropriated fund balance account for bus purchases in 
its transportation fund as of June 30 in the school year 
beginning in the calendar year following the calendar year the 
levy is certified; plus 
    (d) an amount equal to the aid subtraction computed 
pursuant to section 124.225, subdivision 8k, for the school year 
beginning in the year the levy is certified; except that for the 
1983 payable 1984 levy, this amount shall be based upon the aid 
subtraction for the 1984-1985 school year.  These amounts shall 
be placed in the transportation fund and used for any lawful 
purpose.  
    Levies authorized by this subdivision shall be computed 
according to procedures established by the commissioner.  
    Sec. 7.  [ADDITIONAL TRANSPORTATION LEVIES, 1983.] 
     Subdivision 1.  [SECONDARY PUPIL TRANSPORTATION.] In 1983 
only, a district may levy an amount equal to the estimated cost, 
in the school year beginning in the year in which the levy is 
certified, of transporting secondary pupils to and from school 
who live more than one mile but less than two miles from the 
public school which they could attend or from a nonpublic school 
actually attended.  
     Subd. 2.  [UNDERLEVY MAKEUP.] Any district which in 1982 
levied less than the maximum amount the district was permitted 
to levy pursuant to Minnesota Statutes 1982, section 275.125, 
subdivision 5, for the estimated cost of transporting secondary 
pupils to and from school who live more than one mile but less 
than two miles from the public school which they could attend or 
from a nonpublic school actually attended, or which in 1982 
levied less than $18 times the number of FTE pupils transported 
on contracted school buses in the preceding school year in the 
regular transportation category, may make an additional 
transportation levy in 1983.  The additional levy in 1983 shall 
not exceed the amount by which the district's actual levy in 
1982 under those provisions was less than the maximum amount the 
district was permitted to levy under those provisions.  
    Sec. 8.  [APPROPRIATIONS.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
there is appropriated:  
    $84,820,000..........1984, 
    $89,652,000..........1985.  
    (a) The appropriation for 1984 includes $13,471,000 for aid 
for fiscal year 1983 payable in fiscal year 1984 and $71,349,000 
for fiscal year 1984 payable in fiscal year 1984.  
    (b) The appropriation for 1985 includes $12,591,000 for aid 
for fiscal year 1984 payable in fiscal year 1985 and $77,061,000 
for fiscal year 1985 payable in fiscal year 1985.  
    (c) The appropriations are based on aid entitlements of 
$83,940,000 for fiscal year 1984 and $90,660,000 for fiscal year 
1985.  
    Subd. 3.  [CANCELLATION.] Any unexpended balance remaining 
from the appropriation in this section for 1984 shall cancel and 
shall not be available for the second year of the biennium. None 
of the amounts appropriated in this section shall be expended 
for a purpose other than the purpose indicated.  If the 
appropriation amount attributable to either year for any 
purposes indicated is insufficient, the aid for that year shall 
be prorated among all qualifying districts in the manner 
prescribed in Minnesota Statutes, section 124.225, subdivision 
8a. 

                               ARTICLE 3
SPECIAL EDUCATION
    Section 1.  Minnesota Statutes 1982, section 120.17, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULES OF THE STATE BOARD.] The state board shall 
promulgate rules relative to qualifications of essential 
personnel, courses of study or training, methods of instruction 
and training, pupil eligibility, size of classes, rooms, 
equipment, supervision, parent consultation and any other rules 
and standards it deems necessary, for instruction of handicapped 
children.  These rules shall provide standards and procedures 
appropriate for the implementation of and within the limitations 
of subdivisions 3a and 3b.  These rules shall also provide 
standards for the discipline, control, management and protection 
of handicapped children.  The state board shall, according to 
section 14.05, subdivision 4, notify a district applying for a 
variance from the rules within 45 calendar days of receiving the 
request whether the request for the variance has been granted or 
denied.  If a request is denied, the board shall specify the 
program standards used to evaluate the request and the reasons 
for denying the request.  
    Sec. 2.  Minnesota Statutes 1982, section 124.17, 
subdivision 2d, is amended to read: 
    Subd. 2d.  [SUMMER SCHOOL MEMBERSHIP.] In summer school or 
inter-session classes of flexible school year programs, 
membership for pupils shall mean the number of full-time 
equivalent pupils in the program.  This number shall equal the 
sum for all pupils of the number of classroom hours in the 
programs for which each pupil is enrolled divided by 1050.  
However, the number of hours for an individual pupil may not 
exceed 120 or average more than six per day unless a district 
obtains approval from the commissioner of education.  Membership 
in summer school or intersession classes of flexible school year 
programs shall not include a handicapped pupil whose district of 
residence has been determined by section 120.17, subdivision 8a, 
and who is temporarily placed in a state institution or a 
licensed residential facility for care and treatment. 
    Sec. 3.  Minnesota Statutes 1982, section 124.201, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] For the purposes of computing 
foundation aid for handicapped pupils enrolled in summer school 
and inter-session classes of flexible school year programs, the 
following phrases shall have the meanings given them.  
    (1) "Summer school pupil units" means full-time equivalent 
pupil units for summer school classes and inter-session classes 
of flexible school year programs computed under the provisions 
of section 124.17.  Only pupils who are handicapped and who are 
appropriately served at levels 4, 5, or 6 of the continuum of 
placement model described in 5 MCAR 1.0120 B.11. state board 
rules shall be included in the computation of summer school 
pupil units.  
    (2) "Summer school revenue allowance" means an amount equal 
to the product of the number of summer school pupil units in a 
district, times the foundation aid formula allowance as defined 
in section 124.2122 for the preceding regular school year.  
    (3) "Summer school aid" means aid for summer school and 
inter-session classes of flexible school year programs.  
    Sec. 4.  Minnesota Statutes 1982, section 124.201, 
subdivision 3, is amended to read: 
    Subd. 3.  [AID FOR 1982 SUMMER SCHOOL AID.] Each year In 
fiscal year 1983 a district shall receive summer school aid for 
the 1982 summer school session equal to the difference between:  
    (1) the product of 
    (a) the ratio of the district's actual levy to its 
permitted levy pursuant to section 275.125, subdivision 2i 
certified in the calendar year when the summer school program is 
offered; times 
    (b) the district's summer school revenue allowance; and 
    (2) the levy certified by the district pursuant to section 
275.125, subdivision 2i in the calendar year when the summer 
school program is offered.  
    Sec. 5.  Minnesota Statutes 1982, section 124.201, is 
amended by adding a subdivision to read: 
    Subd. 4.  [AID FOR 1983 SUMMER SCHOOL SESSION.] In fiscal 
year 1984 a district shall receive summer school aid for the 
1983 summer school session equal to the difference between:  
    (1) the product of 
    (a) the ratio of the district's actual levy to its 
permitted levy pursuant to section 14, clause (a), of this 
article certified in calendar year 1983; times 
    (b) the district's summer school revenue allowance; and 
    (2) the levy certified by the district pursuant to section 
15, clause (a), of this article in calendar year 1983.  
    Sec. 6.  Minnesota Statutes 1982, section 124.201, is 
amended by adding a subdivision to read: 
    Subd. 5.  [SUMMER SCHOOL AID.] In fiscal year 1985 and each 
year thereafter, a district shall receive summer school aid 
equal to the difference between:  
    (1) the product of 
    (a) the ratio of the district's actual levy to its 
permitted levy, pursuant to section 15 of this article, 
certified in the calendar year before the summer school program 
is offered; times 
    (b) the district's summer school revenue allowance; and 
    (2) the levy certified by the district pursuant to section 
15 of this article in the calendar year before the summer school 
program is offered.  
    Sec. 7.  Minnesota Statutes 1982, section 124.201, is 
amended by adding a subdivision to read: 
    Subd. 6.  [AID ADJUSTMENT.] The department of education 
shall adjust the aid paid each year to reflect adjustments which 
were made or could have been made to the levy because of a 
difference between estimated and actual pupil membership.  The 
department shall also adjust levy limitations for districts 
where actual pupil membership differs from estimated pupil 
membership. 
    Sec. 8.  Minnesota Statutes 1982, section 124.273, 
subdivision 4, is amended to read: 
    Subd. 4.  [APPLICATION DATES.] (a) A district wishing to 
receive aid pursuant to this section shall submit an application 
by October 15, February 15, and June 15 of each year.  Aid paid 
pursuant to this section shall be based on the number of pupils 
of limited English proficiency enrolled in the district at the 
time the district submits its first application or the number of 
additional such pupils enrolled at the time subsequent 
applications are submitted A district shall submit an initial 
application for aid by October 15 and shall submit an amended 
application by February 15 or by June 15 if the number of 
enrolled pupils of limited English proficiency has changed since 
filing a previous application.  Districts which do not submit an 
initial application by October 15 but enroll pupils of limited 
English proficiency after that date may submit an initial 
application by February 15 or by June 15.  A final report with 
actual salary and enrollment information shall be submitted by 
August 15 for calculation of the final payment.  
    (b) All applications shall be submitted to the department 
in the manner prescribed by the commissioner.  Each application 
shall include (1) the number of pupils or additional pupils 
enrolled who meet the criteria in section 126.262, subdivision 
2; (2) the number, dates of hire, full time equivalency, and 
salaries of essential licensed personnel or additional essential 
licensed personnel employed in the district's educational 
program for pupils of limited English proficiency who meet the 
criteria in section 126.262, subdivision 3; and (3) any other 
information deemed necessary by the commissioner to implement 
this section.  School districts may submit joint applications 
for aid pursuant to this section and may share essential 
instructional personnel employed in educational programs for 
pupils of limited English proficiency.  
    Sec. 9.  Minnesota Statutes 1982, section 124.32, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [CURRENT FUNDING.] Unless otherwise specified, 
the aids provided for educational programs for handicapped 
children shall be paid on a current funding basis. 
    Sec. 10.  Minnesota Statutes 1982, section 124.32, 
subdivision 5, is amended to read: 
    Subd. 5.  [RESIDENTIAL AID.] When a handicapped child is 
placed in a residential facility approved by the commissioner 
and established primarily to serve handicapped children and when 
the child's educational program is approved by the commissioner, 
the state shall pay aid to the resident district under the 
provisions of this subdivision.  Except for the 1982-1983 
1981-1982 regular school year, the aid shall be an amount not to 
exceed 60 percent of the difference between the instructional 
costs charged to the resident district and the foundation aid 
formula allowance, for each handicapped child placed in a 
residential facility.  Except for 1983 1982 summer school 
programs, the aid for summer school programs for each 
handicapped child placed in a residential facility shall be an 
amount not to exceed 60 percent of the difference between the 
instructional costs charged to the resident district and the 
summer school revenue allowance in the resident district 
attributable to that child.  Aid for these programs shall be 
paid on a reimbursement basis by October 31 following completion 
of the program.  No aid shall be paid pursuant to this 
subdivision for tuition charged a resident district pursuant to 
section 120.17, subdivision 7a, for a child placed at the 
Minnesota school for the deaf or the Minnesota braille and 
sight-saving school. 
    The following types of facilities may be approved by the 
commissioner: 
    (a) A residential facility operated by the state or public 
school district and designed to serve the low incidence 
handicapped, the multiple handicapped, or the most severely 
handicapped children within the state. 
    (b) A private, nonsectarian residential facility designed 
to provide educational services for handicapped children within 
the state. 
    (c) A state hospital or private nonsectarian residential 
center designed to provide care and treatment for handicapped 
children. 
    Sec. 11.  Minnesota Statutes 1982, section 124.32, 
subdivision 5a, is amended to read: 
    Subd. 5a.  [1982-1983 1981-1982 RESIDENTIAL AID.] The aid 
for the 1982-1983 1981-1982 school year shall be paid according 
to subdivision 5, except that for the regular 1982-1983 
1981-1982 school year the aid shall be an amount not to exceed 
35.7 percent of the difference between the instructional costs 
charged to the resident district and the foundation aid formula 
allowance, for each handicapped child placed in a residential 
facility.  For summer school programs in 1983 1982, the aid for 
each handicapped child placed in a residential facility shall be 
an amount not to exceed 35.7 percent of the difference between 
the instructional costs charged to the resident district and the 
summer school revenue allowance in the resident district 
attributable to that child. 
    Sec. 12.  Minnesota Statutes 1982, section 126.54, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GRANTS; PROCEDURES.] For fiscal years 1982 
and 1983, 1984, and 1985 the state board of education shall make 
grants to no fewer than six school year American Indian language 
and culture education programs.  At least three programs shall 
be in urban areas and at least three shall be on or near 
reservations.  The board of a local district, a participating 
school or a group of boards may develop a proposal for grants in 
support of American Indian language and culture education 
programs.  Proposals may provide for contracts for the provision 
of program components by nonsectarian nonpublic, community, 
tribal or alternative schools.  The state board shall prescribe 
the form and manner of application for grants, and no grant 
shall be made for a proposal not complying with the requirements 
of sections 126.45 to 126.55.  The state board shall submit all 
proposals to the state advisory task force on American Indian 
language and culture education programs for its recommendations 
concerning approval, modification, or disapproval and the 
amounts of grants to approved programs. 
    Sec. 13.  Minnesota Statutes 1982, section 275.125, 
subdivision 2i, is amended to read: 
    Subd. 2i.  [1982 HANDICAPPED SUMMER SCHOOL LEVY.] A 
district may levy for the 1982 summer school programs for 
handicapped pupils an amount equal to the following product:  
    (1) The district's summer school revenue allowance as 
defined in section 124.201, subdivision 2, clause (2) for the 
calendar year when the levy is certified 1982 session, times 
    (2) the lesser of:  
    (a) one, or 
    (b) the ratio of 
    (i) the quotient derived by dividing the adjusted assessed 
valuation of the district in the third preceding year by the 
total pupil units in the district in the preceding regular 
school year, to 
    (ii) the equalizing factor for the preceding regular school 
year.  
    Sec. 14.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 2j.  [1983 LEVY FOR 1983 AND 1984 HANDICAPPED SUMMER 
SCHOOL.] (a) In 1983 a district may levy for the 1983 summer 
school program for handicapped pupils an amount equal to the 
following product: 
    (1) the district's summer school revenue allowance as 
defined in section 124.201, subdivision 2, clause (2) for the 
1983 session, times 
    (2) the lesser of:  
    (i) one, or 
    (ii) the ratio of 
    (A) the quotient derived by dividing the 1980 adjusted 
assessed valuation of the district by the total pupil units in 
the district in the 1982-1983 school year, to 
     (B) the equalizing factor for the 1982-1983 school year. 
     (b) In addition, in 1983 a district may levy for the 1984 
summer school program for handicapped pupils an amount equal to 
the following product: 
    (1) the district's estimated summer school revenue 
allowance as defined in section 124.201, subdivision 2, clause 
(2), times 
    (2) the lesser of 
    (i) one, or 
    (ii) the ratio of 
    (A) the quotient derived by dividing the 1981 adjusted 
assessed valuation of the district by the number of total pupil 
units in the district in the 1983-1984 school year, to 
    (B) the equalizing factor for the 1983-1984 school year.  
    Sec. 15.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 2k.  [HANDICAPPED SUMMER SCHOOL LEVY.] In 1984 and 
each year thereafter, a district may levy for summer school 
programs for handicapped pupils an amount equal to the following 
product:  
    (a) The district's estimated summer school revenue 
allowance as defined in section 124.201, subdivision 2, clause 
(2) for the summer school session to be held in the calendar 
year after the calendar year when the levy is certified, times 
    (b) the lesser of 
    (1) one, or 
    (2) the ratio of 
    (i) the quotient derived by dividing the adjusted assessed 
valuation of the district in the second preceding year by the 
total pupil units in the district in the current school year, to 
    (ii) the equalizing factor for the current regular school 
year.  
    Sec. 16.  Laws 1982, chapter 548, article 3, section 27, is 
amended to read:  
    Sec. 27.  [SUPERVISION.] 
    For the 1982-1983 and 1983-1984 school year years, the 
rules on supervisory personnel of 5 MCAR 1.0122 D., D.1., D.2., 
D.3., and D.4. are suspended. 
    By February 1, 1983, the department of education shall 
report to the education committees of the legislature regarding 
the need to reinstate the rules or its recommendations for 
alternative rules for supervisory personnel.  
    Sec. 17.  Laws 1982, chapter 548, article 3, section 28, is 
amended to read: . 
    Sec. 28.  [STUDENT TO STAFF RATIOS; 1982-1983 AND 1983-1984 
SCHOOL YEAR YEARS.] 
    For the 1982-1983 and 1983-1984 school year years, a school 
district may increase the student to staff ratios established 
pursuant to 5 MCAR 1.0122 C. by an amount not to exceed 20 
percent.  By February 1, 1983, the department shall report to 
the education committees of the legislature regarding 
recommendations on promulgating new student to staff rules which 
provide greater flexibility to school districts and which have 
cost containment features, including incentives for cooperation 
among school districts.  
    Sec. 18.  [REPEALER.] 
    Minnesota Statutes 1982, sections 124.273, subdivisions 1 
and 2; and 124.32, subdivisions 1 and 9 are repealed.  
    Sec. 19.  [APPROPRIATIONS.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
aid there is appropriated:  
    $116,905,000.....1984, 
    $123,266,000.....1985.  
    The appropriation for 1984 includes $15,148,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $101,757,000 
for aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $17,957,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $105,309,000 
for aid for fiscal year 1985, payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$119,714,000 for fiscal year 1984 and $123,893,000 for fiscal 
year 1985.  
    Subd. 3.  [SUMMER SCHOOL FOUNDATION AID.] For aid pursuant 
to section 124.201, subdivision 3, for special education summer 
school programs there is appropriated:  
    $ 621,000......1984, 
    $ 749,000......1985.  
    The appropriation for 1984 is for 1983 summer school 
programs.  
    The appropriation for 1985 is for 1984 summer school 
programs.  
    Subd. 4.  [SUMMER SCHOOL SPECIAL EDUCATION AID.] For 
special education aid for summer school programs there is 
appropriated:  
    $4,257,000.....1984, 
    $4,922,000.....1985.  
    The appropriation for 1984 is for 1983 summer school 
programs.  
    The appropriation for 1985 is for 1984 summer school 
programs.  
    Subd. 5.  [RESIDENTIAL FACILITIES AID.] For aid pursuant to 
section 124.32, subdivision 5, there is appropriated:  
    $1,139,000.....1984, 
    $1,185,000.....1985.  
    Subd. 6.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
For aid to educational programs for pupils of limited English 
proficiency pursuant to section 124.273 there is appropriated:  
    $2,860,000.....1984, 
    $3,079,000.....1985.  
    The appropriation for 1984 includes $380,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $2,480,000 for 
aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $438,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $2,641,000 for 
aid for fiscal year 1985, payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$2,918,000 for fiscal year 1984 and $3,107,000 for fiscal year 
1985.  
    Subd. 7.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAM 
AID.] For grants to American Indian language and culture 
education programs pursuant to section 126.54, subdivision 1, 
there is appropriated:  
    $538,000.....1984, 
    $565,000.....1985.  
    The appropriation for 1984 includes $73,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $465,000 for 
aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $82,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $483,000 for 
aid for fiscal year 1985, payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$547,000 for fiscal year 1984 and $568,000 for fiscal year 1985. 
    Subd. 8.  [HEARING IMPAIRED SUPPORT SERVICES AID.] For 
payment of support services for hearing impaired persons 
pursuant to section 121.201 there is appropriated:  
    $42,000.....1984, 
    $37,000.....1985.  
    The appropriations are based on aid entitlements of $42,000 
for fiscal year 1984 and $43,000 for fiscal year 1985.  
    Subd. 9.  [CANCELLATION.] Any unexpended balances remaining 
from the appropriations in this section for 1984 shall cancel 
and shall not be available for the second year of the biennium. 
None of the amounts appropriated in this section shall be 
expended for a purpose other than the purpose indicated.  
    Subd. 10.  [PRORATION.] If the appropriation amount in 
subdivisions 2, 3, 4, 5, or 6 of this section attributable to 
either year for the purpose indicated is insufficient, the aid 
for that year shall be prorated among all qualifying districts 
and the state shall not be obligated for any amount in excess of 
the appropriations in this section for these purposes.  
    Sec. 20.  [EFFECTIVE DATE.] 
    Sections 1, 2, 9, 10, and 11 of this article are effective 
the day following final enactment. 

                               ARTICLE 4 

                     COMMUNITY AND ADULT EDUCATION 
    Section 1.  Minnesota Statutes 1982, section 124.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMPENSATION.] For evening schools and 
continuing education programs for adults established for persons 
over 16 years of age and not in attendance upon regular day 
schools, the state shall compensate any district maintaining 
such programs in accordance with requirements established by the 
state board from funds appropriated for that purpose, or such 
funds combined with federal funds insofar as federal funds are 
available.  The state shall pay these aids on a current funding 
basis.  Except for the 1982-1983 school year, the portion of the 
compensation from state appropriation aid shall be 90 percent of 
the compensation paid each teacher for services in the programs 
up to $8,000 per year based on the costs as approved in that the 
current year application.  Aid may also be paid for an 
alternative method of providing programs if the method is 
determined by the commissioner of education to be 
cost-effective.  Not more than two and one-half percent of the 
amount appropriated for evening schools and continuing education 
programs may be for alternative programs.  All classes shall be 
tuition free when taught by teachers subsidized under this 
section. and there shall be No charge for registration, 
materials and supplies may be made except a security deposit for 
the return of materials, supplies, and equipment.  Evening 
school and continuing education programs are defined as those 
public day or evening school programs which are established for 
persons over 16 years of age not in attendance at the full time 
elementary or secondary schools and which qualify such persons 
for the high school diploma, the high school equivalency 
certificate or for academic achievement at the secondary level. 
     Sec. 2.  Minnesota Statutes 1982, section 124.271, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [AID; 1984.] (1) Beginning in fiscal year 1984, 
each district which is operating a community education program 
in compliance with the rules promulgated by the state board and 
which has levied pursuant to section 275.125, subdivision 8, 
shall receive in state aid the greater of the following:  
    (a) $5 per capita minus the amount raised by .9 mill times 
the adjusted assessed valuation used to compute the community 
education levy limitation for the levy attributable to that 
school year; or 
    (b) 75 25 cents per capita; or 
    (c) $7,000.  
    However the amount of aid shall not exceed the amount 
certified, for any district which qualifies for aid under clause 
(c) and which does not certify the maximum permissible levy 
pursuant to section 275.125, subdivision 8, the aid shall be 
reduced by multiplying the aid amount by the ratio of the 
district's actual levy to its maximum permissible levy.  For 
purposes of computing the aid limitation pursuant to this 
subdivision, the amount certified pursuant to section 275.125, 
subdivision 8, shall not reflect reductions pursuant to section 
275.125, subdivision 9.  
     (2) In addition to the amount in clause (1), in fiscal year 
1984 a district which made a levy for community education 
programs pursuant to section 275.125, subdivision 8, shall 
receive additional aid of 25 cents per capita.  
    Sec. 3.  Minnesota Statutes 1982, section 124.271, is 
amended by adding a subdivision to read: 
    Subd. 2b.  [AID; 1985 AND AFTER.] (1) In fiscal year 1985 
and each fiscal year thereafter, each district which is 
operating a community education program in compliance with rules 
promulgated by the state board shall receive community education 
aid in an amount equal to the difference obtained by subtracting 
    (a) an amount equal to .8 mill times the adjusted assessed 
valuation used to compute the community education levy 
limitation for the levy attributable to that school year, from 
    (b) the greater of 
    (i) $7,000, or 
    (ii) $5 times the population of the district.  
    (2) However, for any district which certifies less than the 
maximum permissible levy under the provisions of section 
275.125, subdivision 8, clause (4), the district's community 
education aid under clause (1) of this subdivision shall be 
reduced by multiplying the aid amount computed pursuant to 
clause (1) of this subdivision by the ratio of the district's 
actual levy under section 275.125, subdivision 8, clause (4), to 
its maximum permissible levy under section 275.125, subdivision 
8, clause (4).  For purposes of computing the aid reduction 
pursuant to this clause, the amount certified pursuant to 
section 275.125, subdivision 8, clause (4), shall not reflect 
reductions made pursuant to section 275.125, subdivision 9.  
    (3) In addition to the amount in clause (1), in fiscal year 
1985 and each fiscal year thereafter a district which makes a 
levy for community education programs pursuant to section 
275.125, subdivision 8, shall receive additional aid of 50 cents 
per capita.  
    Sec. 4.  Minnesota Statutes 1982, section 124.271, is 
amended by adding a subdivision to read: 
    Subd. 2c. [EARLY CHILDHOOD AND FAMILY EDUCATION PROGRAMS.] 
Districts which did not offer early childhood and family 
education programs funded by the council on quality education 
during the 1982-1983 school year may use the aid received 
pursuant to subdivision 2a, clause (2) or subdivision 2b, clause 
(3) for community education programs in early childhood and 
family education, or for any other community education program. 
Districts which offered early childhood and family education 
programs funded by the council on quality education during the 
1982-1983 school year shall use the aid received pursuant to 
subdivision 2a, clause (2) or subdivision 2b, clause (3) to 
continue the existing early childhood and family education 
programs through the 1983-1984 and 1984-1985 school years. 
Beginning with the 1985-1986 school year and each year 
thereafter, any district which receives aid pursuant to 
subdivision 2b, clause (3) may use the aid for community 
education programs in early childhood and family education, or 
for any other community education program.  
    Sec. 5.  Minnesota Statutes 1982, section 124.271, 
subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENT SCHEDULE.] Starting in fiscal Each 
fiscal year 1983, the state shall pay to each school district 85 
percent of its community education program aid for the current 
fiscal year by November 1.  The final aid distribution to each 
district shall be made by November 1 of the following fiscal 
year.  All community education program aid shall be distributed 
by the state aids section of the department of education.  
    Sec. 6.  Minnesota Statutes 275.125, subdivision 8, is 
amended to read: 
    Subd. 8.  [COMMUNITY EDUCATION LEVY.] (1) In 1981 a 
district which has established a community education advisory 
council pursuant to section 121.88, may levy an amount of money 
raised by the greater of (A) $3.40 per capita, or (B) 110 
percent of the amount certified pursuant to this subdivision in 
1980.  These levies shall be used for community services 
including nonvocational adult programs, recreation and leisure 
time activity programs, and programs contemplated by sections 
121.85 to 121.88.  For purposes of computing the levy limitation 
pursuant to this subdivision, the amount certified pursuant to 
this subdivision in 1980 shall not reflect reductions pursuant 
to subdivision 9.  
    (2) Except as provided in clauses (3) (2) and (4), (3), 
in 1982, and Each year thereafter, a district which has 
established a community education advisory council pursuant to 
section 121.88, may levy the amount raised by .9 mill times the 
most recent adjusted assessed valuation of the district, but no 
more than $5 times the population of the district. This amount 
shall be reduced to $4.25 $4.75 per capita for districts which 
will qualify for aid in fiscal year 1984 equal to 75 25 cents 
per capita pursuant to section 124.271, subdivision 2a, clause 
(1)(b).  
    (3) (2) In 1982 districts which received total revenue in 
fiscal year 1983 from community education aid and levy in excess 
of $5 times the population of the district, may levy the amount 
of the fiscal year 1983 revenue less $5 times the population of 
the district in addition to the amount in clause (2) (1).  
    (4) (3) In 1982 districts which will qualify for aid 
pursuant to section 124.271, subdivision 2a, clause (1)(c) may 
levy the greater of the following: 
     (a) $5 per capita minus $7,000; or 
     (b) the amount of their fiscal year 1983 revenue from 
community education aid and levy minus $7,000. 
    (4) In 1983 and each year thereafter, a district which has 
established a community education advisory council pursuant to 
section 121.88, may levy the amount raised by .8 mill times the 
most recent adjusted assessed valuation of the district, but no 
more than the greater of 
    (a) $5 times the population of the district, or 
    (b) $7,000.  
    (5) In addition to the levy authorized in clause (4), in 
1983 a district may levy an additional amount for community 
education programs equal to the difference obtained by 
subtracting 
    (a) the sum in fiscal year 1984 of 
    (i) the district's estimated maximum permissible revenue 
from community education aid under section 124.271, subdivision 
2a, clause (1), and 
    (ii) the community education levy authorized in clause (4) 
of this subdivision, from 
     (b) the sum in fiscal year 1983 of 
     (i) the district's maximum permissible revenue from 
community education aid under section 124.271, subdivision 2, 
excluding any reductions from community education aid made 
pursuant to Laws 1981, Third Special Session chapter 2, article 
2, section 2, clause (mm), and Laws 1982, Third Special Session 
chapter 1, article 3, section 6, and 
    (ii) the maximum community education levy authorized in 
this subdivision for the district for the levy made in 1981, 
payable in 1982, before any reduction in the levy pursuant to 
subdivision 9.  
    (6) In 1984 and each year thereafter, in addition to the 
levy authorized in clause (4), a district may levy an amount 
equal to the amount the district was entitled to levy pursuant 
to clause (5) in 1983.  
    (5) (7) The levies authorized in this subdivision shall be 
used for community education, including nonvocational adult 
programs, recreation and leisure time activity programs, and 
programs authorized by sections 121.85 to 121.88.  A school 
district may levy pursuant to this subdivision only after it has 
filed a certificate of compliance with the commissioner of 
education.  The certificate of compliance shall certify that the 
governing boards of the county, municipality and township in 
which the school district or any part thereof is located have 
been sent 15 working days written notice of a meeting and that a 
meeting has been held to discuss methods of increasing mutual 
cooperation between such bodies and the school board.  The 
failure of a governing board of a county, municipality or 
township to attend the meeting shall not affect the authority of 
the school district to levy pursuant to this subdivision. 
    (6) (8) The population of the district for purposes of this 
subdivision is the population determined as provided in section 
275.14 or as certified by the department of education from the 
most recent federal census. 
    Sec. 7.  [LEVY ADJUSTMENT.] 
    The commissioner shall adjust the 1982 payable 1983 
community education levy limitations for school districts 
according to the provisions of this section.  The adjustment 
shall be a positive or negative amount equal to the difference 
between the amount the district levied pursuant to section 
275.125, subdivision 8, and the amount the district would have 
certified if the provisions in this article amending section 
275.125, subdivision 8 with respect to the 1982 payable 1983 
levy had been in effect at the time the 1982 payable 1983 levy 
was made.  The adjustment shall be added to or subtracted from 
the district's levy limitation for 1983 taxes payable in 1984.  
    Sec. 8.  [EARLY CHILDHOOD AND FAMILY EDUCATION PROGRAMS.] 
    In those districts which provided early childhood and 
family education programs funded by the council on quality 
education during the 1982-1983 school year, the citizens 
advisory council for community education, in consultation with 
the director of the district's early childhood and family 
education program, shall develop a plan for offering the 
programs through the community education program.  In those 
districts which did not provide early childhood and family 
education programs funded by the council on quality education 
during the 1982-1983 school year, the citizen's advisory council 
is encouraged to develop a plan for offering early childhood and 
family education programs through the community education 
program.  
    Sec. 9.  [STAFF COMPLEMENT; TRANSFER.] The commissioner of 
education may transfer one staff complement, together with 
administrative costs, from the staff of the council on quality 
education to the division of instruction for the purpose of 
providing technical assistance to districts offering early 
childhood and family education programs through the district's 
community education program.  
    Sec. 10.  [REPEALER.] 
    Minnesota Statutes 1982, sections 124.26, subdivision 4, 
and 124.271, subdivision 5, are repealed.  
    Sec. 11.  [APPROPRIATIONS.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [ADULT EDUCATION AID.] For adult education aid 
pursuant to section 124.26 there is appropriated:  
    $1,359,000.......1984, 
    $1,427,000.......1985.  
    The amount appropriated for fiscal year 1984 includes 
$185,000 for aid for fiscal year 1983 payable in fiscal year 
1984, and $1,174,000 for aid for fiscal year 1984 payable in 
fiscal year 1984.  
    The amount appropriated for fiscal year 1985 includes 
$207,000 for aid for fiscal year 1984 payable in fiscal year 
1985, and $1,220,000 for aid for fiscal year 1985 payable in 
fiscal year 1985.  
     The appropriations are based on aid entitlements of 
$1,381,000 for fiscal year 1984 and $1,436,000 for fiscal year 
1985.  
    Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
education aid pursuant to section 124.271 there is appropriated: 
    $3,946,000......1984, 
    $3,201,000......1985.  
    The amount appropriated for fiscal year 1984 includes 
$494,000 for aid for fiscal year 1983 payable in fiscal year 
1984, and $3,452,000 for aid for fiscal year 1984 payable in 
fiscal year 1984.  
    The amount appropriated for fiscal year 1985 includes 
$610,000 for aid for fiscal year 1984 payable in fiscal year 
1985, and $2,591,000 for fiscal year 1985 payable in fiscal year 
1985.  
     The appropriations are based on aid entitlements of 
$4,062,000 for fiscal year 1984 and $3,414,000 for fiscal year 
1985.  
    Subd. 4.  [CANCELLATION AND PRORATION.] Any unexpended 
balance remaining from the appropriations in this section for 
1984 shall cancel and shall not be available for the second year 
of the biennium.  None of the amounts appropriated in this 
section shall be expended for a purpose other than the purpose 
indicated.  If the appropriation amount attributable to either 
year for the purpose indicated is insufficient, the aid for that 
year shall be prorated among all qualifying districts, and the 
state shall not be obligated for any amount in excess of the 
appropriations in this section for these purposes. 

                               ARTICLE 5 

                         VOCATIONAL EDUCATION 
    Section 1.  Minnesota Statutes 1982, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [AVTIS] Money shall not be transferred from the 
post-secondary general fund to any other operating or 
nonoperating fund.  
    Sec. 2.  [124.5611] [AVTI FUNDING.] 
    Beginning with aids for the 1983-1984 school year, 
post-secondary vocational aids for AVTI's shall be paid for the 
current fiscal year according to sections 3 to 11 of this 
article, and 124.564.  
    Sec. 3.  [124.5612] [AVTI AID DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] Beginning with aids for 
the 1983-1984 school year, for the purposes of sections 3 to 11 
of this article, 124.564, and 124.565, the following terms have 
the meanings given them.  
    Subd. 2.  [ADM.] "ADM" means average daily membership 
computed according to section 9 of this article.  
    Subd. 3.  [AVTI.] "AVTI" means a post-secondary area 
vocational technical institute.  
    Subd. 4.  [COMPONENT ACTIVITIES.] "Component activities" 
means regular instruction, special needs instruction, research, 
instructional administration, media/library, pupil personnel 
services, health services, director's office, instructional 
services, fixed costs, work study/financial aid, physical plant, 
and repair and betterment.  
    Subd. 5.  [INSTRUCTIONAL AID.] "Instructional aid" means 
state money, exclusive of repair and betterment aid and debt 
service aid, allocated by the state board for vocational 
education to districts for post-secondary vocational technical 
education instructional costs.  
    Subd. 6.  [INSTRUCTIONAL COSTS.] "Instructional costs" 
means expenditures in the following categories:  licensed and 
nonlicensed staff salaries; licensed and nonlicensed staff 
fringe benefits, excluding teachers' retirement and teachers' 
social security; staff travel for instructional, administrative, 
and professional development purposes; purchased services; other 
expenditures, detailed according to UFARS; supplies and 
materials; supplies for resale; rents and leases; acquisition or 
purchase of equipment and machinery; and betterment of equipment 
and machinery.  
    Subd. 7.  [PROGRAM.] "Program" means a post-secondary 
vocational technical occupational program as classified with a 
six-digit number by the United States department of education.  
    Subd. 8.  [REPAIR AND BETTERMENT AID.] "Repair and 
betterment aid" means state money, exclusive of instructional 
aid and debt service aid, allocated by the state board for 
vocational education to districts.  The aid is to reconstruct, 
improve, remodel, and repair existing AVTI buildings and 
grounds, as necessary to conduct post-secondary vocational 
technical education.  
    Subd. 9.  [UFARS.] "UFARS" means the uniform financial 
accounting and reporting system.  
    Sec. 4.  [124.5613] [PROGRAMS OF STUDY.] 
    Subdivision 1.  [BOARD DUTIES.] The state board for 
vocational education shall approve, disapprove, and coordinate 
post-secondary vocational education programs.  After 
consultation with the affected school boards, the state board 
may add, eliminate, transfer, or change programs as it 
determines advisable.  
    Subd. 2.  [PROGRAM ELIMINATION.] In the absence of 
compelling reasons to do otherwise, the state board shall 
eliminate a program if:  
    (a) fewer than 51 percent of the students are employed in 
positions closely related to their training within one year of 
completing their educational objectives; or 
    (b) the ADM to teacher ratio is significantly below 12 to 1 
for a health program or 17 to 1 for a nonhealth program.  
    Subd. 3.  [IN-SERVICE TRAINING.] The state board may 
provide for in-service training for AVTI instructors.  
    Sec. 5.  [124.5614] [PROCESS FOR AID ALLOCATION.] 
    Subdivision 1.  [BUDGET SUBMISSION.] Before January 1 of 
each year, each AVTI shall submit an instructional aid budget 
for the following fiscal year.  The instructional aid budget 
shall detail estimated instructional costs in each expenditure 
category for each program and component activity of the AVTI's 
operations.  The instructional aid budget shall include 
estimated revenues from sale of supplies and services, sale of 
equipment and other capital goods, and other revenues, detailed 
according to UFARS.  
    Subd. 2.  [RECOMMENDED ALLOCATIONS.] After reviewing each 
budget, the department of education shall recommend aid 
allocations for the following fiscal year in each expenditure 
category for each program and component activity.  
    The department shall recommend instructional aid 
allocations sufficient to maintain or improve special needs 
instruction.  
    Notwithstanding any laws or rules to the contrary, the 
recommendations for allocations of instructional aid, to the 
extent possible, shall be based on average systemwide ADM to 
teacher ratios of 12 to 1 for health programs and 17 to 1 for 
nonhealth programs.  
     The annual student placement rate of each program shall be 
taken into consideration by the department in recommending 
instructional aid allocations. 
     Each AVTI's tuition revenues in the fiscal year for which 
aid is allocated shall be taken into consideration by the 
department in recommending instructional aid allocations.  
    Each AVTI's unappropriated capital balance of the equipment 
account in the capital expenditure fund, as of June 30 of the 
fiscal year during which allocations are made, shall be taken 
into consideration by the department in recommending 
instructional aid allocations for the purposes listed in section 
6, subdivision 3, clauses (a), (b), (c), and (d) of this 
article.  In recommending instructional aid allocations for all 
other purposes, the department shall take into consideration 
each AVTI's net positive unappropriated general fund balance, as 
of June 30 of the fiscal year during which allocations are made, 
which exceeds ten percent of the AVTI's operating expenditures, 
as defined by UFARS, for the fiscal year during which 
allocations are made. 
    Each AVTI's actual expenditures which exceed the amounts 
originally budgeted for expenditure during the fourth quarter of 
the fiscal year in which aids are allocated shall be taken into 
consideration by the department in recommending instructional 
aid allocations.  
    Allocations of repair and betterment aid shall be 
recommended for each project proposed by an AVTI.  In 
recommending repair and betterment aid allocations, the 
department shall take into consideration each AVTI's net 
positive unappropriated capital balance of the repair and 
betterment account of the capital expenditure fund, as of June 
30 of the fiscal year during which allocations are made. 
    Subd. 3.  [HEARING.] The aid allocations recommended by the 
department of education shall be taken to a public hearing held 
by the state board for vocational education with at least six 
board members present.  The hearing shall continue until all 
interested persons, representatives, and organizations have had 
an opportunity to be heard.  Notice of the hearing shall be 
given at least 20 days prior to the date set for the hearing. 
The notice shall be published in the State Register and mailed 
to each district submitting a budget, and other interested 
persons and organizations who register their names with the 
commissioner of education for that purpose.  The department of 
education shall make available at least one free copy of the 
recommended allocations to the education committees of the 
legislature and to any person requesting it.  An audio magnetic 
recording device shall be used to keep a record at every 
hearing.  A transcript of the hearing record shall be made 
available upon the request of any person, if the request is in 
writing and the requester pays the cost of preparing the 
transcript.  
     Subd. 4.  [HEARING REPORT.] After allowing written material 
to be submitted and added to the hearing record for five days 
after the public hearing ends, the commissioner of education 
shall proceed as promptly as possible to write a report 
containing the final proposed allocations of aids.  This report 
shall contain findings and conclusions based on substantial 
evidence from the hearing record to support the final proposed 
allocations.  The report shall be available to all affected 
districts upon request for at least 15 days before the state 
board takes final action allocating aids.  
    Subd. 5.  [MODIFICATIONS TO REPORT.] Any district which is 
adversely affected by the final proposed allocations of aids may 
request and shall be given an opportunity to be heard in support 
of modification of the proposed final allocation of aids at the 
meeting at which the state board takes final action allocating 
aids.  The state board may place reasonable restrictions on the 
length of time allowed for testimony.  
    Subd. 6.  [FINAL ALLOCATION.] By June 1, after hearing 
modification requests, if any, the state board shall take final 
action to allocate aids.  Allocations of instructional aid shall 
be detailed in each expenditure category for each program and 
component activity.  The total allocation of instructional aid 
for each AVTI shall specify the amounts of any fund balances and 
tuition revenues taken into consideration.  Allocations of 
repair and betterment aid shall be detailed for each project. 
The total allocation of repair and betterment aid for each AVTI 
shall specify the amount of any fund balance taken into 
consideration.  
    Subd. 7.  [SUBSEQUENT ALLOCATION.] The state board may 
withhold up to one percent of the post-secondary vocational 
instructional aid appropriation for subsequent allocation.  The 
amount withheld and any additional state and federal money 
available for post-secondary vocational education shall be 
allocated, no later than February 15 of the fiscal year for 
which the aid is allocated, at a public hearing held according 
to subdivisions 3, 4, and 5.  
    Sec. 6.  [124.5615] [USE OF AID.] 
    Subdivision 1.  [AID AND TUITION.] All AVTI aids and all 
tuition authorized by section 124.565 shall be used solely for 
the purposes of post-secondary vocational technical education.  
    Subd. 2.  [ACCOUNTING.] Each district providing 
post-secondary vocational technical education shall maintain, in 
accordance with section 121.908, separate revenue, expenditure, 
asset and liability accounts for post-secondary vocational 
technical education within funds separate from all other 
district funds.  
    Subd. 3.  [INSTRUCTIONAL AID.] Instructional aid allocated 
for the following purposes shall be placed in the equipment 
account of the capital expenditure fund:  
    (a) acquisition or purchase of equipment or machinery;  
    (b) betterment of equipment or machinery;  
    (c) paying leasing fees for computer systems hardware and 
related proprietary software, photocopy machines and 
telecommunications equipment; and 
    (d) renting or leasing buildings for school purposes.  
    Aid allocated for these purposes shall be used solely for 
these purposes.  
    All other instructional aid which is allocated shall be 
placed in the general fund and shall not be transferred to any 
other fund.  The school board shall authorize and approve actual 
expenditures of the aid allocated.  
     Subd. 4.  [SPECIAL NEEDS.] Aid allocated for special needs 
instruction shall be used solely for that purpose.  
    Subd. 5.  [REPAIR AND BETTERMENT AID.] The final allocation 
of repair and betterment aid by the state board does not 
constitute approval of a project for the purposes of section 
121.21, subdivision 4a.  The aid shall be placed in the repair 
and betterment account of the capital expenditure fund and used 
solely for the purposes enumerated in section 3, subdivision 8 
of this article.  The school board shall authorize and approve 
actual expenditures of the aid allocated, except that 
expenditures which exceed $5,000 shall receive prior approval by 
the commissioner of education.  The process in section 5 of this 
article shall not constitute approval for this purpose.  Use of 
the aid shall be governed by the provisions of section 121.21, 
subdivision 4a. 
    Sec. 7.  [124.5616] [DISTRIBUTION OF MONEY.] 
    All money, whether state, federal, or from other sources, 
which may be made available to the department of education for 
carrying out the purposes of post-secondary vocational technical 
education shall be allocated by the state board for vocational 
education to districts in accordance with law and shall be 
distributed by the state aids section of the department of 
education.  
    Sec. 8.  [124.5617] [CERTAIN EQUIPMENT EXPENDITURES.] 
    Expenditures for the purposes in section 6, subdivision 3, 
clauses (a), (b), (c), and (d) of this article which exceed 
$6,000 shall receive prior approval by the commissioner of 
education.  The process in section 5 shall not constitute 
approval for this purpose.  
    Sec. 9.  [124.5618] [AVERAGE DAILY MEMBERSHIP.] 
    Subdivision 1.  [MEMBERSHIP.] Membership for pupils in 
AVTI's shall mean the number of pupils on the current roll of 
the school, counted from the date of entry until the date of 
withdrawal.  
    Subd. 2.  [WITHDRAWAL.] The date of withdrawal shall mean 
the date a pupil completes the program and permanently leaves 
the AVTI.  A pupil who has been absent for 15 consecutive school 
days shall be determined to have permanently left the school.  A 
pupil who permanently leaves the school on or before the 15th 
day of a quarter shall be determined not to have entered during 
that quarter.  For a pupil who permanently leaves after the 15th 
school day of a quarter without completing the program, the date 
of withdrawal shall be the earliest of the following:  
    (a) the date the pupil is scheduled to complete the program;
    (b) the date the AVTI fills the vacancy created by leaving; 
or 
    (c) the last day of the quarter during which the pupil 
permanently leaves the AVTI.  
    Subd. 3.  [COMPUTATION.] Average daily membership for 
pupils enrolled in an AVTI shall equal the quotient obtained by 
dividing 
     (a) the product of 
    (1) the sum for all pupils of the number of days of the 
school year each pupil is enrolled in an AVTI, counted from the 
date of entry until the date of withdrawal, times 
     (2) the quotient obtained by dividing 
     (i) the number of hours per day each pupil is enrolled, by 
     (ii) six; by 
    (b) 175. 
     The number of hours counted for any pupil in any one 
program shall not exceed the number of hours approved by the 
state board for vocational education for completion of the 
program.  However, a district may count additional hours for 
membership, if necessary for a pupil who is identified by the 
district as handicapped or disadvantaged, to complete the 
program.  For disadvantaged students, these additional hours 
shall not exceed ten percent of the approved number of hours for 
the program.  Adult vocational pupils shall not be counted for 
the purposes of this section.  Additional hours counted shall be 
reported to the commissioner.  
    Subd. 4.  [CHEMICAL ABUSE TREATMENT.] A pupil who is absent 
from an AVTI to participate in a chemical abuse treatment 
program and who is on the roll of the AVTI according to the 
provisions of section 10 of this article may be counted in 
average daily membership during that time for not more than 30 
consecutive school days.  If a returning pupil needs additional 
hours to complete the educational program, the AVTI may count 
the lesser of the following additional hours for membership:  
    (a) the number of hours the pupil was counted while 
participating in the treatment program; or 
    (b) 30 times the number of hours per day the pupil is 
enrolled.  
    Sec. 10.  [124.5619] [ABSENCE FOR CHEMICAL ABUSE 
TREATMENT.] 
    If a pupil is absent from an AVTI to participate in a 
chemical abuse treatment program licensed by the state, the 
pupil may request the AVTI to remain on the roll in the 
educational program in which the pupil is enrolled.  The AVTI 
shall grant a request it receives from the pupil.  
    Sec. 11.  [124.5628] [LENGTH OF SCHOOL YEAR AND DAY.] 
    For an AVTI, the normal school year shall be at least 175 
session days.  In all AVTI's, the length of the school day for 
each pupil, exclusive of the noon intermission, shall be at 
least six hours.  Exceptions may be made by the district for 
approved AVTI programs provided on a part-time or extended day 
basis to meet the needs of individual students or classes. These 
exceptions are authorized only for programs originally provided 
on a full-time basis.  
    Sec. 12.  Minnesota Statutes 1982, section 124.572, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADULT VOCATIONAL AID.] Except for the 1982-1983 
school year, the state shall pay to any district or cooperative 
vocational center 75 percent of the salaries paid to essential, 
licensed personnel or personnel exempt from licensure pursuant 
to section 125.031 in that school year for services rendered in 
that district's or center's adult vocational education 
programs.  Notwithstanding any law or any licensure requirements 
to the contrary, the portion of a community education director's 
salary attributable to services rendered for the district's or 
center's adult vocational education program shall qualify for 
aid according to this subdivision.  In addition, the state shall 
pay 50 percent of the costs of necessary travel between 
instructional sites by adult vocational education teachers.  The 
commissioner may withhold all or any portion of this aid for an 
adult vocational education program which receives moneys from 
any other source, and in no event shall a district or center 
receive a total amount of state aid for salaries and travel 
pursuant to this section which, when added to moneys from other 
sources, will provide the program an amount for salaries and 
travel which exceeds 100 percent of the amount of its 
expenditures for salaries and travel in the program. 
    Sec. 13.  [125.055] [TEMPORARY LICENSURE RULES.] 
    The state board for vocational education may adopt 
temporary licensure rules, according to sections 14.29 to 14.36, 
when necessary to implement entirely new programs for emerging 
occupations which will promote economic development in 
Minnesota.  The state board shall notify the education 
committees of the legislature of each program for which it 
intends to adopt temporary licensure rules.  
    Sec. 14.  [RATIO AND PLACEMENT REPORT.] 
    By December 1, 1983, the state board for vocational 
education shall report to the legislature on programs which fall 
below the annual student placement rates or the ADM to teacher 
ratios as provided in section 4 of this article.  This report 
shall contain the number of these programs, the actions taken by 
the state board pursuant to section 4 of this article, and, in 
the event that a program is not eliminated, the cost to the 
state of retaining it.  By November 1, 1983, this report shall 
be given to the higher education coordinating board for review 
and comment.  
    Sec. 15.  [REPORT ON PROJECTED FIXED ASSETS NEEDS.] 
    By December 1, 1983, the commissioner of education shall 
develop a report on a five year projection of the replacement 
needs of fixed assets property for each of the AVTIs.  The 
report shall be submitted to the education committees of the 
legislature and to the local directors of the AVTIs.  
    Sec. 16.  [ADULT VOCATIONAL REPORT.] 
    By December 1, 1983, the state board shall report to the 
education committees of the legislature on the feasibility of 
funding adult vocational education programs with full-time 
instructors in the same manner as post-secondary vocational 
education programs.  
    Sec. 17.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, sections 124.561 
and 124.5621 are repealed.  
    Subd. 2.  Minnesota Statutes 1982, sections 124.11, 
subdivision 2c, 124.562, 124.5622, 124.5623, 124.5624, 124.5625, 
124.5626, and 124.5627 are repealed.  
    Subd. 3.  The repeal of the sections in subdivisions 1 and 
2 shall not affect the right of a school district to receive nor 
the obligation of the commissioner of education to pay aids 
attributable to the 1982-1983 school year payable in fiscal year 
1984 pursuant to the sections repealed.  
    Sec. 18.  [APPROPRIATIONS.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [POST-SECONDARY VOCATIONAL INSTRUCTIONAL AID.] 
For post-secondary vocational instructional aid there is 
appropriated:  
    $85,635,000.....1984, 
    $92,248,000.....1985.  
    The appropriation for 1984 includes $7,890,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, pursuant to 
section 124.5621, and $77,745,000 for aid for fiscal year 1984 
payable in fiscal year 1984, pursuant to section 5 of this 
article.  
    The appropriation for 1984 is based on the assumption that 
the state will spend for this purpose an amount at least equal 
to $5,700,000 in fiscal year 1984 of federal money received for 
vocational education programs pursuant to the Vocational 
Education Act of 1963, as amended.  
    The appropriation for 1985 includes $13,720,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $78,528,000 for 
aid for fiscal year 1985 payable in fiscal year 1985, pursuant 
to section 5 of this article.  
    The appropriation for 1985 is based on the assumption that 
the state will spend for this purpose an amount at least equal 
to $5,700,000 in fiscal year 1985 of federal money received for 
vocational education programs pursuant to the Vocational 
Education Act of 1963, as amended.  
    The appropriations are based on aid entitlements of 
$91,465,000 for fiscal year 1984 and $92,386,000 for fiscal year 
1985.  
    Subd. 3.  [POST-SECONDARY VOCATIONAL SUPPLY AID.] For 
post-secondary vocational supply aid there is appropriated:  
    $2,370,000.....1984.  
    The appropriation is for aid for fiscal year 1983 payable 
in fiscal year 1984.  
    Subd. 4.  [POST-SECONDARY VOCATIONAL SUPPORT SERVICES AID.] 
For post-secondary vocational support services aid there is 
appropriated:  
    $2,428,000.....1984.  
    The appropriation is for aid for fiscal year 1983 payable 
in fiscal year 1984.  
    Subd. 5.  [POST-SECONDARY VOCATIONAL EQUIPMENT AID.] For 
post-secondary vocational equipment aid there is appropriated:  
    $1,458,000.....1984.  
    The appropriation is for aid for fiscal year 1983 payable 
in fiscal year 1984.  
    Subd. 6.  [POST-SECONDARY VOCATIONAL DEBT SERVICE AID.] For 
post-secondary vocational debt service aid there is appropriated:
    $6,987,000.....1984, 
    $6,715,000.....1985.  
    Subd. 7.  [ADULT VOCATIONAL EDUCATION AID.] For adult 
vocational education aid there is appropriated:  
    $7,732,000.....1984, 
    $8,122,000.....1985.  
    The appropriation for 1984 includes $1,055,000 for aid for 
fiscal year 1983 payable in fiscal year 1984.  This amount also 
includes $6,677,000 for aid for fiscal year 1984.  
    The appropriation for 1985 includes $1,178,000 for aid for 
fiscal year 1984 payable in fiscal year 1985.  This amount also 
includes $6,944,000 for aid for fiscal year 1985 payable in 
fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$7,855,000 for fiscal year 1984 and $8,170,000 for fiscal year 
1985.  
    Subd. 8.  [VETERAN FARMER COOPERATIVE TRAINING PROGRAMS.] 
For veteran farmer cooperative training programs there is 
appropriated:  
    $392,000.....1984, 
    $320,000.....1985.  
    Subd. 9.  [DULUTH AND GRAND RAPIDS LOGGING PROGRAM.] For 
the logging business management program operated by the adult 
extension department of the Duluth area vocational-technical 
institute and the Grand Rapids school district, there is 
appropriated in addition to the aid provided according to 
subdivision 8:  
    $30,000.....1984, 
    $30,000.....1985.  
    Subd. 10.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
secondary vocational education aid pursuant to section 124.573 
there is appropriated:  
    $20,378,000.....1984, 
    $20,037,000.....1985.  
    The appropriation for 1984 includes $2,935,000 for aid for 
fiscal year 1983 payable in fiscal year 1984.  This amount also 
includes $17,443,000 for aid for fiscal year 1984 payable in 
fiscal year 1984.  
    The appropriation for 1985 includes $3,078,000 for aid for 
fiscal year 1984 payable in fiscal year 1985.  This amount also 
includes $16,959,000 for aid for fiscal year 1985 payable in 
fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$20,521,000 for fiscal year 1984 and $19,952,000 for fiscal year 
1985.  
    For the purposes of this subdivision, money appropriated 
for secondary vocational education programs may not be expended 
for the purpose of discontinuing or converting existing senior 
secondary industrial arts education programs.  
    Subd. 11.  [AID FOR SECONDARY VOCATIONAL EDUCATION PROGRAMS 
FOR HANDICAPPED CHILDREN.] For secondary vocational programs for 
handicapped children pursuant to section 124.574 there is 
appropriated:  
    $2,564,000.....1984, 
    $2,695,000.....1985.  
    The appropriation for 1984 includes $348,000 for aid for 
fiscal year 1983 payable in fiscal year 1984.  This amount also 
includes $2,216,000 for aid for fiscal year 1984 payable in 
fiscal year 1984.  This appropriation is based on the assumption 
that the state will spend for this purpose an amount at least 
equal to $230,000 in fiscal year 1984 of federal money received 
for vocational education programs pursuant to the Vocational 
Education Act of 1963, as amended.  
    The appropriation for 1985 includes $391,000 for aid for 
fiscal year 1984 payable in fiscal year 1985.  This amount also 
includes $2,304,000 for aid for fiscal year 1985 payable in 
fiscal year 1985.  This appropriation is based on the assumption 
that the state will spend for this purpose an amount at least 
equal to $230,000 in fiscal year 1985 of federal money received 
for vocational education programs pursuant to the Vocational 
Education Act of 1963, as amended.  
    The appropriations are based on aid entitlements of 
$2,607,000 for fiscal year 1984 and $2,710,000 for fiscal year 
1985.  
    Subd. 12.  [CANCELLATION; PRORATION.] Any unexpended 
balance remaining from the appropriations in this section for 
1984 shall cancel and shall not be available for the second year 
of the biennium.  None of the amounts appropriated in this 
section shall be expended for a purpose other than the purpose 
indicated.  If the appropriation amounts attributable to either 
year for any purpose indicated are insufficient, the aid for 
that year shall be prorated among all qualifying districts, and 
the state shall not be obligated for any amount in excess of the 
appropriations in this section for these purposes.  
     Sec. 19.  [EFFECTIVE DATE.] 
    Sections 1, 2, 3, 4, 5, 6, 8, 13, and 17, subdivision 1 are 
effective the day following final enactment. 

                               ARTICLE 6 

                         OTHER AIDS AND LEVIES 
    Section 1.  [121.151] [STANDARDS FOR REMOVAL OF HAZARDOUS 
SUBSTANCES.] 
    Prior to using the revenue obtained according to sections 
123.36, subdivision 13, 124.245, subdivisions 1b and 1c, and 
275.125, subdivisions 11b and 11c, a school district shall 
obtain approval from the department of education for its method 
of removal or encapsulation of asbestos or cleanup or disposal 
of polychlorinated biphenyls.  The department of education shall 
consult with the pollution control agency, health department, 
environmental protection agency, or other appropriate 
governmental agency in approving or disapproving a district's 
method.  If the pollution control agency or other appropriate 
governmental agency adopts rules establishing standards for 
asbestos removal or encapsulation or cleanup or disposal of 
polychlorinated biphenyls, the department of education shall 
approve only those district methods which are in compliance with 
the adopted rules.  
    Sec. 2.  Minnesota Statutes 1982, section 121.911, is 
amended by adding a subdivision to read:  
    Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
the commissioner of education, a district may incur a deficit in 
the capital expenditure fund for a period not to exceed three 
years to provide money for capital projects.  A description of 
the project and a financial plan to recover the deficit shall be 
approved by the commissioner prior to the initiation of the 
project.  
    Sec. 3.  Minnesota Statutes 1982, section 121.912, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEFICITS; EXCEPTION.] For the purposes of this 
section, a permanent transfer includes creating a deficit in a 
nonoperating fund for a period past the end of the current 
fiscal year which is covered by moneys in an operating fund.  
However, a deficit in the capital expenditure fund pursuant to 
section 121.911, subdivision 5, shall not constitute a permanent 
transfer.  
    Sec. 4.  Minnesota Statutes 1982, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 8.  [INTERDISTRICT COOPERATION LEVY AND AID.] Any 
districts which consolidate pursuant to section 122.23 and which 
were eligible to make the levy and receive aid pursuant to the 
provisions of sections 16 and 25 of this article prior to the 
effective date of the consolidation, shall continue to remain 
eligible to apply for interdistrict cooperation aid and levy 
after the effective date of the consolidation.  
    Sec. 5.  Minnesota Statutes 1982, section 123.36, 
subdivision 13, is amended to read: 
    Subd. 13.  [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 
sale or exchange of school buildings or real property of the 
school district shall be used as provided in this subdivision. 
    (1) In districts with outstanding bonds, the proceeds of 
the sale or exchange shall first be deposited in the debt 
retirement fund of the district in an amount sufficient to meet 
when due that percentage of the principal and interest payments 
for outstanding bonds which is ascribable to the payment of 
expenses necessary and incidental to the construction or 
purchase of the particular building or property which is sold.  
    (2) After satisfying the requirements of clause (1), a 
district with outstanding bonds may deposit proceeds of the sale 
or exchange in its capital expenditure fund if the amount 
deposited is used for the following:  
    (a) for energy audits on district owned buildings conducted 
pursuant to chapter 116H, and for funding those energy 
conservation and renewable energy measures which the energy 
audits indicate will reduce the use of nonrenewable sources of 
energy to the extent that the projected energy cost savings will 
amortize the cost of the conservation measures within a period 
of ten years or less;  
    (b) for capital expenditures for the purpose of reducing or 
eliminating barriers to or increasing access to school 
facilities by handicapped persons;  
    (c) for capital expenditures to bring district facilities 
into compliance with the uniform fire code adopted pursuant to 
chapter 299F; or 
    (d) for expenditures for the removal of asbestos from 
school buildings or property or for asbestos encapsulation, if 
the method for asbestos removal or encapsulation is approved by 
the department of education;  
    (e) for expenditures for the cleanup of polychlorinated 
biphenyls, if the method for cleanup is approved by the 
department of education;  
    (f) for capital expenditures to renovate and improve school 
buildings in which enrollment has increased as a result of 
closing schools in the district; or 
    (g) to replace the building or property sold.  
    The amount of the proceeds used for the purposes specified 
in clauses (a), (b) and, (c), (d), and (e) shall be deducted 
from the levy limitation computed for the levy authorized in 
section 275.125, subdivision 11b in the first year after the 
deposit and from levy limitations computed for this levy in 
succeeding years until the entire amount is deducted.  
    (3) In a district with outstanding bonds, the amount of the 
proceeds of the sale or exchange remaining after the application 
of clauses (1) and (2), which is sufficient to meet when due 
that percentage of the principal and interest payments for the 
district's outstanding bonds which is not governed by clause 
(1), shall be deposited in the debt retirement fund.  
    (4) Any proceeds of the sale or exchange remaining in 
districts with outstanding bonds after the application of 
clauses (1), (2), and (3), and all proceeds of the sale or 
exchange in districts without outstanding bonds shall be 
deposited in the capital expenditure fund of the district. 
     (5) Notwithstanding clauses (2) and (3), a district with 
outstanding bonds may deposit in its capital expenditure fund 
and use for any lawful capital expenditure without the reduction 
of any levy limitation the same percentage of the proceeds of 
the sale or exchange of a building or property as the percentage 
of the initial cost of purchasing or constructing the building 
or property which was paid using revenue from the capital 
expenditure fund.  
    (6) Every district which sells or exchanges a building or 
property shall report to the commissioner in the form and at the 
time he prescribes on the disposition of the proceeds of the 
sale or exchange.  
    Sec. 6.  Minnesota Statutes 1982, section 123.36, is 
amended by adding a subdivision to read: 
    Subd. 14.  [ASBESTOS REMOVAL AND POLYCHLORINATED BIPHENYLS 
CLEANUP.] Notwithstanding any law to the contrary, school 
districts may, without an election, enter into contracts 
extending beyond the end of the fiscal year to pay the costs of 
removal or encapsulation of asbestos or cleanup of 
polychlorinated biphenyls found in school buildings or on school 
property.  
    Sec. 7.  Minnesota Statutes 1982, section 123.702, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [COMPONENTS.] 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, review of health 
history and immunization status, and assessments of height, and 
weight and blood pressure.  All screening components shall be 
consistent with the standards of the state commissioner of 
health for early and periodic screening programs.  No child 
shall be required to submit to any component of this screening 
program to be eligible for any other component.  No 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 the results of any laboratory test, health history 
or physical examination within the 12 months preceding a 
scheduled screening clinic.  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. 
    Sec. 8.  Minnesota Statutes 1982, section 123.705, is 
amended to read: 
    123.705 [STATE HEALTH SCREENING AID.] 
    Subdivision 1.  [AID AMOUNTS.] The department of education 
shall pay each school district for the cost of screening 
services provided pursuant to sections 123.701 to 123.705.  The 
payment shall not exceed $28 per child screened in fiscal year 
1982 and $15 per child screened in fiscal year 1983, $15 per 
child screened in fiscal year 1984, and $15.60 per child 
screened in fiscal year 1985.  Any district may request and 
receive an advance payment equal to 50 percent of its estimated 
payment for screening eligible children.  
    Subd. 2.  [PAYMENT SCHEDULE.] For the 1982-1983 and 
1983-1984 school years, 85 percent of a district's health 
screening aid for each school year shall be distributed prior to 
November 30 of that school year.  The final aid distribution to 
each district shall be made prior to November 30 of the 
following school year.  
    Sec. 9.  Minnesota Statutes 1982, section 123.933, 
subdivision 3, is amended to read: 
    Subd. 3.  [COST OF TEXTBOOKS; LIMITATION.] (a) The cost per 
pupil of the textbooks, individualized instructional materials 
and standardized tests provided for in this section for each 
school year shall not exceed the statewide average expenditure 
per pupil, adjusted pursuant to clause (b), by the Minnesota 
public elementary and secondary schools for textbooks, 
individualized instructional materials and standardized tests as 
computed and established by the department of education by March 
1 of the preceding school year from the most recent public 
school year data then available. 
    (b) The cost computed in clause (a) shall be increased by 
an inflation adjustment equal to the percent of increase in the 
foundation aid formula allowance, pursuant to section 124.2122, 
subdivision 1, from the second preceding school year to the 
current school year. 
    (c) The commissioner shall allot to the school districts or 
intermediary service areas the total cost for each school year 
of providing or loaning the textbooks, individualized 
instructional materials and standardized tests for the pupils in 
each nonpublic school.  The allotment shall not exceed the 
product of the statewide average expenditure per pupil, adjusted 
pursuant to clause (b), multiplied by the number of nonpublic 
school pupils who make requests pursuant to this section and who 
are enrolled as of September 15 of the current school year. 
    (d) For the 1982-1983 school year, 85 percent of a 
district's nonpublic pupil aid shall be distributed prior to 
December 31 of that school year.  The final aid distribution to 
each district shall be made prior to December 31 of the 
following school year.  
    Sec. 10.  Minnesota Statutes 1982, section 124.155, 
subdivision 2, as amended by Laws 1982, Third Special Session 
chapter 1, article 3, section 3, is amended to read: 
    Subd. 2.  [SUBTRACTION FROM AIDS.] The amount specified in 
Laws 1981, Third Special Session chapter 2, article 4, section 
3, subdivision 2, as amended by Laws 1982, chapter 548, article 
7, section 7, as further amended by Laws 1982, Third Special 
Session chapter 1, article 3, section 4 of this act shall be 
subtracted from the following state aids and credits in the 
order listed in fiscal year 1983.  The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (a) Foundation aid as authorized in section 124.212, 
subdivision 1;  
    (b) Secondary vocational aid authorized in section 124.573; 
    (c) Special education aid authorized in section 124.32;  
    (d) Secondary vocational aid for handicapped children 
authorized in section 124.574;  
    (e) Gifted and talented aid authorized in section 124.247;  
    (f) Aid for pupils of limited English proficiency 
authorized in section 124.273;  
    (g) Aid for improved learning programs authorized in 
section 124.251;  
    (h) (g) Aid for chemical use programs authorized in section 
124.246;  
    (i) (h) Transportation aid authorized in section 124.225;  
    (j) (i) Community education programs aid authorized in 
section 124.271;  
    (k) (j) Adult education aid authorized in section 124.26;  
    (l) (k) Capital expenditure equalization aid authorized in 
section 124.245;  
    (m) (l) Homestead credit authorized in section 273.13, 
subdivisions 6, 7, and 14a;  
    (n) (m) Reduced assessment credit authorized in section 
273.139; 
    (o) (n) Wetlands credit authorized in section 273.115;  
    (p) (o) Native prairie credit authorized in section 273.116;
and 
    (q) (p) Attached machinery aid authorized in section 
273.138, subdivision 3.  
    The commissioner of education shall schedule the timing of 
the reductions from state aids and credits specified in Laws 
1981, Third Special Session chapter 2, article 4, section 3, 
subdivision 2, as amended by Laws 1982, chapter 548, article 7, 
section 7, as further amended by article III, section 4 of this 
act, and the adjustments to state aids and credits specified in 
subdivision 1, as close to the end of the fiscal year as 
possible and in such a manner that will minimize the impact of 
Laws 1981, Third Special Session chapter 2, article 4, as 
amended, on the cash flow needs of the school districts. 
    Sec. 11.  Minnesota Statutes 1982, section 124.214, 
subdivision 2, is amended to read: 
    Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
sections 270.07, 375.192, or otherwise, the assessed valuation 
of any school district for any taxable year is changed after the 
taxes for that year have been spread by the county auditor and 
whenever the mill rate as determined by the county auditor based 
upon the original assessed valuation is applied upon such the 
changed valuations, the county auditor shall, prior to February 
1 of each year, certify to the commissioner of education the 
amount of any resulting net revenue loss that accrued to the 
school district during the preceding year.  In August of each 
year, the commissioner shall pay an abatement adjustment to the 
district in an amount calculated according to the provisions of 
this subdivision.  This amount shall be deducted from the amount 
of the levy authorized by section 275.48.  The amount of the 
abatement adjustment shall be the product of (1) the net revenue 
loss as certified by the county auditor, times (2) the ratio of 
the sum of the amounts of the district's levy limitations in the 
preceding October pursuant to section 275.125, subdivision 
subdivisions 2a, and subdivisions 2i, 2j, 2k, 5, 5c, 6c, and 7a 
to the total amount of the district's maximum levy limitation in 
the preceding October pursuant to section 275.125.  If the 
district is entitled to aid pursuant to section 124.2123, the 
levy limitation pursuant to section 275.125, subdivision 6b, 
shall be included in the computation of the ratio.  If the 
district is entitled to aid pursuant to section 124.2128, the 
levy limitation pursuant to section 275.125, subdivision 6d, 
shall be included in the computation of the ratio.  For purposes 
of this computation, the district's levy limitation pursuant to 
section 275.125, subdivision 5, shall not include the amounts 
authorized to be levied for bus purchases or because of 
extraordinary traffic hazards.  The abatement adjustment shall 
be recognized as revenue in the fiscal year in which it is 
received. 
    Sec. 12.  Minnesota Statutes 1982, section 124.245, is 
amended by adding a subdivision to read:  
    Subd. 1c.  [HAZARDOUS SUBSTANCE COMPUTATION.] For the 
1984-1985 school year and each year thereafter, the state shall 
pay a school district the difference by which an amount equal to 
$25 per pupil unit exceeds the amount raised by two mills times 
the adjusted assessed valuation of the taxable property in the 
district for the preceding year.  To qualify for aid pursuant to 
this subdivision in any school year, a district must levy the 
maximum permissible amount pursuant to section 275.125, 
subdivision 11c for use in that year.  Aid paid pursuant to this 
subdivision may be used only for the purposes for which the 
proceeds of the levy authorized in section 275.125, subdivision 
11c may be used.  
    Sec. 13.  Minnesota Statutes 1982, section 124.246, 
subdivision 2, is amended to read: 
    Subd. 2.  [AID.] Except for the 1982-1983 school year, An 
eligible district shall receive $1 $1.04 in fiscal year 1984 and 
$1.08 in fiscal year 1985 for each pupil, in average daily 
membership, enrolled in a public elementary, secondary or area 
vocational-technical or nonpublic elementary or secondary 
school.  Aid for nonpublic school pupils shall be paid to the 
district upon request by or on behalf of the pupils.  No 
district shall receive less than $1,000 $1,040 in fiscal year 
1984 and $1,080 in fiscal year 1985.  
    Sec. 14.  Minnesota Statutes 1982, section 124.247, 
subdivision 3, is amended to read: 
    Subd. 3.  [AID.] A district which establishes a program for 
gifted and talented students shall receive for the purpose of 
this program an amount equal to $16.25, in the 1981-1982 school 
year, and $16.18 in the 1982-1983 school year, $18.25 in the 
1983-1984 school year, and $19.00 in the 1984-1985 school year, 
times the number of gifted and talented students in the 
district.  No more than five percent of the students enrolled in 
the district shall be counted as gifted and talented for the 
purpose of aid computations pursuant to this subdivision.  No 
more than five percent of the moneys received by a district 
pursuant to this subdivision may be expended for the purpose of 
administration of the program for gifted and talented students. 
    Sec. 15.  Minnesota Statutes 1982, section 124.247, is 
amended by adding a subdivision to read: 
    Subd. 6.  [PAYMENT SCHEDULE.] For the 1982-1983 school 
year, 85 percent of a district's gifted and talented program aid 
for each school year shall be distributed prior to November 30 
of that school year.  The final aid distribution to each 
district shall be made prior to November 30 of the following 
school year.  
    Sec. 16.  [124.272] [INTERDISTRICT COOPERATION AID.] 
    Subdivision 1.  [LIMITATION.] This section shall not apply 
to Special School District No. 1, Independent School Districts 
Nos. 11, 625, and 709, or to school districts which are members 
of Intermediate School Districts Nos. 287, 916, and 917.  
    Subd. 2.  [ELIGIBLE DISTRICTS.] A district shall be 
eligible for interdistrict cooperation aid if it has entered 
into a cooperation agreement and if it has a cooperation plan 
approved by the commissioner of education.  
    Subd. 3.  [COOPERATION PLAN.] To receive aid or to levy 
pursuant to section 25 of this article a district shall submit 
to the commissioner of education an application for aid by 
August 15.  The application shall contain the following:  
    (a) a three-year plan to improve the district curriculum, 
which gives priority to offering of any of the following:  a 
three-year mathematics sequence in grades 10 through 12, a 
three-year science sequence in grades 10 through 12, a two-year 
foreign language sequence, elementary and secondary courses in 
computer usage, or other programs recommended by the state board;
    (b) an assurance that the proposed curriculum in clause (a) 
has been developed in conjunction with the planning, evaluation, 
and reporting process of section 123.741;  
    (c) a copy of the cooperation agreement;  
    (d) a description of the proposed increase in curriculum 
offerings resulting from the agreement;  
    (e) the estimated instructional cost of the cooperation 
plan for the following fiscal year; and 
    (f) other information required by the commissioner.  
    Subd. 4.  [DEFINITION.] (a) A district's "interdistrict 
cooperation revenue" shall equal the lesser of:  (1) $50 times 
the actual pupil units for that school year; (2) the estimated 
cost to the district of the interdistrict cooperation program 
for the school year to which the levy is attributable; or (3) 
$50,000.  
    (b) A district's "interdistrict cooperation levy limitation"
means its levy limitation computed according to section 25 of 
this article.  
    Subd. 5.  [COOPERATION AID.] A district's interdistrict 
cooperation aid for any school year shall equal:  
    (a) the difference between its interdistrict cooperation 
revenue and its interdistrict cooperation levy limitation for 
the levy for that school year, multiplied by 
    (b) the ratio of the amount actually levied to the amount 
of its interdistrict cooperation levy limitation.  
    Subd. 6.  [APPROVAL WITH APPROPRIATION.] The commissioner 
may approve applications for aid within the limitation of the 
appropriation.  Approval shall be based on criteria established 
by the state board of education.  
    Subd. 7.  [REPORT.] By December 1, 1985, and each year 
thereafter, the department of education shall report to the 
education committees of the legislature about the interdistrict 
cooperation agreements and whether the provisions of this 
section have increased educational opportunities in those 
districts.  
    Sec. 17.  Minnesota Statutes 1982, section 124.646, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] (a) For the 
1981-1982 1983-1984 school year, school districts participating 
in the national school lunch program shall be paid by the state 
in the amount of 5.5 7.5 cents for each full paid student lunch 
served to students in the district.  
    (b) For the 1982-1983 1984-1985 school year, school 
districts participating in the national school lunch program 
shall be paid by the state in the amount of 5.9 7.5 cents for 
each full paid student lunch served to students in the district. 
    Sec. 18.  [126.025] [CARDIOPULMONARY RESUSCITATION 
INSTRUCTION.] 
    Subdivision 1.  [AUTHORIZATION.] Pupils attending public 
senior high schools may receive a course of instruction in the 
techniques of cardiopulmonary resuscitation, sufficient to 
enable the pupils to give emergency assistance to victims of 
cardiac arrest.  The instruction may be offered as a separate 
course or as part of another course.  The instruction shall be 
given by a person certified as a cardiopulmonary resuscitation 
instructor by either the American Red Cross or the American 
Heart Association, but that person need not be a licensed 
teacher.  Districts are encouraged to use equipment, teaching 
materials, and training courses provided by public or private 
agencies, educational cooperative service units, or 
organizations such as the American Red Cross, American Heart 
Association.  
    Subd. 2.  [ASSISTANCE.] The department of education shall 
provide technical assistance to educational cooperative service 
units and school districts to implement the provisions of 
subdivision 1.  
    Sec. 19.  [129B.17] [AUTHORIZATION.] 
    The department of education shall prescribe the form and 
manner of application for recipients of comprehensive arts in 
education planning grants.  The state board of education shall 
award grants in consultation with the Minnesota alliance for 
arts in education and the Minnesota state arts board.  
    Sec. 20.  [129B.18] [PROGRAM ACCOUNTS.] 
    A district receiving a comprehensive arts in education 
planning grant shall establish and maintain a separate account 
for the receipt and disbursement of all funds relating to the 
program, and the funds shall be spent only for the purpose of 
arts education programs.  
    Sec. 21.  [129B.19] [ADDITIONAL FUNDING.] 
    A district receiving a comprehensive arts in education 
planning grant may receive funds for the program from private 
sources and from other governmental agencies, including any 
state or federal funds available for arts education.  
    Sec. 22.  [129B.20] [CRITERIA FOR GRANT APPROVAL.] 
    Up to 30 grants of $1,000 each may be approved for programs 
which include:  
    (1) a needs assessment of arts education and planning in 
the school district;  
    (2) creation of a community-based arts education team of 
eight individuals from the school district and the community 
whose function will be to promote comprehensive arts education 
in the school district;  
    (3) participation by members of the arts education team in 
training offered by the department of education; and 
    (4) establishment of an evaluation component.  
    Sec. 23.  [129B.21] [DEPARTMENT RESPONSIBILITY.] 
    The department of education shall:  
    (1) provide training and assistance to the arts education 
teams in the school districts;  
    (2) provide consultation and technical assistance to 
districts which receive arts in education planning grants; and 
    (3) submit a report to the education committees of the 
senate and house of representatives by January 1, 1985.  The 
report shall include the status and implementation of 
comprehensive arts in education planning grants and the 
department's plans to promote arts education in the schools.  
    Sec. 24.  Minnesota Statutes 1982, section 275.125, 
subdivision 4, is amended to read: 
    Subd. 4.  [MISCELLANEOUS LEVY AUTHORIZATIONS.] 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 section 275.125, 
subdivision 3, clause (7) (C), as it read in Minnesota Statutes 
1974; 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; and the 
amounts necessary to pay the district's obligations under 
section 122.533; and the amounts necessary to pay the district's 
insurance premium costs under section 466.06. 
    Sec. 25.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read:  
    Subd. 8a.  [INTERDISTRICT COOPERATION LEVY.] Each year, a 
district which is eligible for aid pursuant to section 16, 
subdivision 2 of this article, may levy the amount of the 
estimated instructional costs of the interdistrict cooperation 
plan for the year to which the levy is attributable, but not 
more than $50 times the actual pupil units for that school 
year.  No levy under this subdivision shall exceed one mill 
times the adjusted assessed valuation of the district for the 
preceding year.  The proceeds of the levy may only be used to 
pay for instructional costs incurred in providing the program 
offerings resulting from the cooperation plan.  
    Sec. 26.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 9b.  [OPERATING DEBT LEVY.] (1) In 1983 and each year 
thereafter, a district may make an additional levy to eliminate 
a deficit in the net unappropriated operating funds of the 
district, determined as of June 30, 1983, and certified and 
adjusted by the commissioner.  This levy may in each year be an 
amount not to exceed the amount raised by a levy of 1.5 mills 
times the adjusted assessed valuation of the district for the 
preceding year as determined by the equalization aid review 
committee.  However, the total amount of this levy for all years 
it is made shall not exceed the lesser of (a) the amount of the 
deficit in the net unappropriated operating funds of the 
district as of June 30, 1983, or (b) the amount of the aid 
reduction, according to Laws 1981, Third Special Session chapter 
2, article 2 and Laws 1982, Third Special Session chapter 1, 
article 3, sections 6 and 7, to the district in fiscal year 
1983.  When the cumulative levies made pursuant to this 
subdivision equal the total amount permitted by this 
subdivision, the levy shall be discontinued.  
    (2) The proceeds of this levy shall be used only for cash 
flow requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets.  
    (3) Any district which levies pursuant to this subdivision 
shall certify the maximum levy allowable under section 271.125, 
subdivision 2a or 2e in that same year.  
    Sec. 27.  Minnesota Statutes 1982, section 275.125, 
subdivision 11a, is amended to read: 
    Subd. 11a.  [CAPITAL EXPENDITURE LEVY.] (a) Each year a 
school district may levy an amount not to exceed the amount 
equal to $90 per pupil unit, or $95 per pupil unit in districts 
where the actual number of pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), has increased from 
the prior year.  No levy under this clause shall exceed seven 
mills times the adjusted assessed valuation of the taxable 
property in the district for the preceding year. 
    (b) The proceeds of the tax may be used to acquire land, to 
equip and re-equip buildings and permanent attached fixtures, to 
rent or lease buildings for school purposes, to pay leasing fees 
for computer systems hardware and related proprietary software, 
and to pay leasing fees for photocopy machines and 
telecommunications equipment.  The proceeds of the tax may also 
be used for capital improvement and repair of school sites, 
buildings and permanent attached fixtures, energy assessments as 
required pursuant to section 116J.24, and for the payment of any 
special assessments levied against the property of the district 
authorized pursuant to section 435.19 or any other law or 
charter provision authorizing assessments against publicly owned 
property; provided that a district may not levy amounts to pay 
assessments for service charges, such as those described in 
section 429.101, whether levied pursuant to that section or 
pursuant to any other law or home rule provision.  The proceeds 
of the tax may also be used for capital expenditures to reduce 
or eliminate barriers to or increase access to school facilities 
by handicapped individuals.  The proceeds of the tax may also be 
used to make capital improvements to schoolhouses to be leased 
pursuant to section 123.36, subdivision 10.  The proceeds of the 
tax may also be used to pay fees for capital outlay expenditures 
assessed and certified to each participating school district by 
the educational cooperative service unit board of directors.  
     (c) Subject to the commissioner's approval, the tax 
proceeds may also be used to acquire or construct buildings.  
The state board shall promulgate rules establishing the criteria 
to be used by the commissioner in approving and disapproving 
district applications requesting the use of capital expenditure 
tax proceeds for the acquisition or construction of buildings.  
The approval criteria for purposes of building acquisition and 
construction shall include:  the appropriateness of the proposal 
for the district's long term needs; the availability of adequate 
existing facilities; and the economic feasibility of bonding 
because of the proposed building's size or cost. 
    (d) The board shall establish a fund in which the proceeds 
of this tax shall be accumulated until expended. 
    (e) The proceeds of the tax shall not be used for custodial 
or other maintenance services. 
    (f) Each year, subject to the seven mill limitation of 
clause (a) of this subdivision, a school district which operates 
an approved secondary vocational education program or an 
approved senior secondary industrial arts program may levy an 
additional amount equal to $5 per pupil unit for capital 
expenditures for equipment for these programs. 
    (g) For purposes of computing allowable levies under this 
subdivision and subdivision subdivisions 11b and 11c, pupil 
units shall include those units identified in section 124.17, 
subdivision 1, clauses (1) and (2), and 98.5 percent of the 
units identified in Minnesota Statutes 1980, section 124.17, 
subdivision 1, clauses (4) and (5) for 1980-1981. 
    Sec. 28.  Minnesota Statutes 1982, section 275.125, 
subdivision 11b, is amended to read: 
    Subd. 11b.  [SPECIAL PURPOSE CAPITAL EXPENDITURE LEVY.] In 
1981 and each year thereafter, In addition to the levy 
authorized in subdivision 11a, each year a school district may 
levy an amount not to exceed the amount equal to $25 per pupil 
unit.  No levy under this clause shall exceed two mills times 
the adjusted assessed valuation of the property in the district 
for the preceding year.  The proceeds of the tax shall be placed 
in the district's capital expenditure fund and may be used only 
for the following:  
    (a) for energy audits on district owned buildings conducted 
pursuant to chapter 116H, and for funding those energy 
conservation and renewable energy measures which the energy 
audits indicate will reduce the use of nonrenewable sources of 
energy to the extent that the projected energy cost savings will 
amortize the cost of the conservation measures within a period 
of ten years or less;  
    (b) for capital expenditures for the purpose of reducing or 
eliminating barriers to or increasing access to school 
facilities by handicapped persons;  
    (c) for capital expenditures to bring district facilities 
into compliance with the uniform fire code adopted pursuant to 
chapter 299F;  
    (d) for expenditures for the removal of asbestos from 
school buildings or property or for asbestos encapsulation;  
    (e) for expenditures for the cleanup and disposal of 
polychlorinated biphenyls.  
    Sec. 29.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 11c.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE LEVY.] 
In 1983 and each year thereafter, in addition to the levy 
authorized in subdivisions 11a and 11b, a school district may 
levy an amount not to exceed the amount equal to $25 per pupil 
unit.  No levy under this subdivision shall exceed two mills 
times the adjusted assessed valuation of the property in the 
district for the preceding year.  The proceeds of the tax shall 
be placed in the district's capital expenditure fund and may be 
used only for expenditures necessary for the removal or 
encapsulation of asbestos or the cleanup and disposal of 
polychlorinated biphenyls found in school buildings or property. 
    Sec. 30.  Minnesota Statutes 1982, section 466.06, is 
amended to read: 
    466.06 [LIABILITY INSURANCE.] 
    The governing body of any municipality may procure 
insurance against liability of the municipality and its 
officers, employees, and agents for damages resulting from its 
torts and those of its officers, employees, and agents, 
including torts specified in section 466.03 for which the 
municipality is immune from liability; and such.  The insurance 
may provide protection in excess of the limit of liability 
imposed by section 466.04.  If the municipality has the 
authority to levy taxes, the premium costs for such insurance 
may be levied in excess of any per capita or millage tax 
limitation imposed by statute or charter; provided, a school 
district may not levy for premium costs pursuant to this 
section.  Any independent board or commission in the 
municipality having authority to disburse funds for a particular 
municipal function without approval of the governing body may 
similarly procure liability insurance with respect to the field 
of its operation.  The procurement of such insurance constitutes 
a waiver of the defense of governmental immunity to the extent 
of the liability stated in the policy but has no effect on the 
liability of the municipality beyond the coverage so provided. 
    Sec. 31.  [275.128] [EXPENSES FOR ASBESTOS AND 
POLYCHLORINATED BIPHENYLS.] 
    Notwithstanding any law to the contrary, a district that 
incurred expenses for removal of asbestos, asbestos 
encapsulation, or cleanup or disposal of polychlorinated 
biphenyls may use the revenue authorized by sections 5, 12, 28, 
and 29 of this article to meet contractual obligations or to 
reimburse the fund from which expenses were paid, regardless of 
when the authorized revenue was received by the district.  
    Sec. 32.  [EDUCATION DISTRICTS; STUDY.] 
    By February 1, 1984, the state board and commissioner of 
education shall report to the education committees of the 
legislature on the feasibility of establishing education 
districts which meet the following criteria: 
     (a) extend, combine, or expand educational and curriculum 
opportunities; 
     (b) maximize the use of instructional and administrative 
personnel; 
     (c) improve efficiency and cost effectiveness; and 
     (d) operate programs pursuant to sections 121.85 to 121.88, 
121.501 to 121.507, 124.247, and 129B.06 to 129B.09.  
    Sec. 33.  [REPEALER.] 
    Minnesota Statutes 1982, sections 124.24 and 129B.09, 
subdivision 5, are repealed.  
    Sec. 34.  [APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [HEALTH AND DEVELOPMENTAL SCREENING PROGRAMS.] 
For health and developmental screening programs pursuant to 
sections 123.701 to 123.705 there is appropriated:  
    $729,000.....1984, 
    $794,000.....1985.  
    The appropriation for fiscal year 1984 includes $103,000 
for aid for fiscal year 1983 payable in fiscal year 1984 and 
$626,000 for aid for fiscal year 1984 payable in fiscal year 
1984.  
    The appropriation for fiscal year 1985 includes $111,000 
for aid for fiscal year 1984 payable in fiscal year 1985 and 
$683,000 for aid for fiscal year 1985 payable in fiscal year 
1985.  
    The appropriations are based on aid entitlements of 
$737,000 for fiscal year 1984 and $804,000 for fiscal year 1985. 
    Subd. 3.  [ABATEMENT AID.] For abatement aid pursuant to 
section 124.214, subdivision 2, there is appropriated:  
    $2,150,000.....1984, 
    $2,250,000.....1985.  
    Subd. 4.  [CAPITAL EXPENDITURE EQUALIZATION AID.] For 
capital expenditure equalization aid pursuant to section 
124.245, subdivision 1, there is appropriated:  
    $313,000.....1984, 
    $224,000.....1985.  
    The appropriation for fiscal year 1984 includes $58,000 for 
aid for fiscal year 1983 payable in fiscal year 1984 and 
$255,000 for aid for fiscal year 1984 payable in fiscal year 
1984.  
    The appropriation for fiscal year 1985 includes $45,000 for 
aid for fiscal year 1984 payable in fiscal year 1985 and 
$179,000 for aid for fiscal year 1985 payable in fiscal year 
1985.  
    The appropriations are based on aid entitlements of 
$300,000 for fiscal year 1984 and $211,000 for fiscal year 1985. 
    Any unexpended balance remaining from the appropriation in 
this subdivision for either year may be expended for special 
purpose capital expenditure equalization aid pursuant to section 
124.245, subdivision 1a.  
    Subd. 5.  [SPECIAL PURPOSE CAPITAL EXPENDITURE EQUALIZATION 
AID.] For special purpose capital expenditure equalization aid 
pursuant to section 124.245, subdivision 1a, there is 
appropriated:  
    $52,000.....1984, 
    $46,000.....1985.  
    The appropriation for fiscal year 1984 includes $9,000 for 
aid for fiscal year 1983 payable in fiscal year 1984 and $43,000 
for aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for fiscal year 1985 includes $8,000 for 
aid for fiscal year 1984 payable in fiscal year 1985 and $38,000 
for aid for fiscal year 1984 payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of $51,000 
for fiscal year 1984 and $45,000 for fiscal year 1985.  
    Any unexpended balance remaining from the appropriation in 
this subdivision for either year may be expended for capital 
expenditure equalization aid pursuant to section 124.245, 
subdivision 1.  
    Subd. 6.  [HAZARDOUS SUBSTANCE CAPITAL EXPENDITURE 
EQUALIZATION AID.] For hazardous substance capital expenditure 
equalization aid pursuant to section 124.245, subdivision 1c, 
there is appropriated:  
    $38,000.....1985.  
    The appropriation for fiscal year 1985 includes $38,000 for 
aid for fiscal year 1985 payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of $45,000 
for fiscal year 1985.  
    Any unexpended balance remaining from the appropriation in 
this subdivision for either year may be expended for capital 
expenditure equalization aid pursuant to section 124.245, 
subdivision 1.  
    Subd. 7.  [EDUCATIONAL COOPERATIVE SERVICE UNITS.] For 
educational cooperative service units, there is appropriated:  
    $695,000.....1984, 
    $591,000.....1985.  
    The appropriations are based on aid entitlements of 
$695,000 for fiscal year 1984 and $695,000 for fiscal year 1985. 
    Funds from this appropriation shall be transmitted to ECSU 
boards of directors for general operations in the amount of 
$63,180 per ECSU for each fiscal year; however, the ECSU whose 
boundaries coincide with the boundaries of development region 11 
and the ECSU whose boundaries encompass development regions six 
and eight shall receive $126,360 for each fiscal year for 
general operations.  
    Subd. 8.  [SCHOOL LUNCH AND FOOD STORAGE AID.] For school 
lunch aid pursuant to section 124.646 and for food storage and 
transportation costs for USDA donated commodities there is 
appropriated:  
    $4,625,000.....1984, 
    $4,625,000.....1985.  
    Any unexpended balance remaining from the appropriations in 
this subdivision shall be prorated among participating schools 
based on the number of fully paid lunches served during that 
school year in order to meet the state revenue matching 
requirement of the USDA National School Lunch Program.  
    If the appropriation amount attributable to either year is 
insufficient, the rate of payment for each fully paid student 
lunch shall be reduced and the aid for that year shall be 
prorated among participating schools so as not to exceed the 
total authorized appropriation for that year.  
    Subd. 9.  [INTERDISTRICT COOPERATION AID.] For aid for 
interdistrict cooperation programs pursuant to section 16 of 
this article there is appropriated:  
    $850,000.....1985.  
    The appropriation is based on aid entitlement of $1,000,000 
for fiscal year 1985.  
    Subd. 10.  [GIFTED AND TALENTED STUDENTS.] For programs for 
the gifted and talented pursuant to section 124.247 there is 
appropriated:  
    $625,000.....1984, 
    $659,000.....1985.  
    The appropriation for aid for fiscal year 1984 includes 
$80,000 for aid for fiscal year 1983 payable in fiscal year 1984 
and $545,000 for aid for fiscal year 1984 payable in fiscal year 
1984.  
    The appropriation for fiscal year 1985 includes $96,000 for 
aid for fiscal year 1984 payable in fiscal year 1985 and 
$563,000 for aid for fiscal year 1984 payable in fiscal year 
1985.  
    The appropriations are based on aid entitlements of 
$641,000 for fiscal year 1984 and $662,000 for fiscal year 1985. 
    Subd. 11.  [NONPUBLIC AIDS.] For programs for nonpublic 
educational aid pursuant to sections 123.931 to 123.947 there is 
appropriated:  
    $6,020,000.....1984, 
    $6,645,000.....1985.  
    The appropriation for aid for fiscal year 1984 includes 
$629,000 for aid for fiscal year 1983 payable in fiscal year 
1984 and $5,391,000 for aid for fiscal year 1984 payable in 
fiscal year 1984.  
    The appropriation for fiscal year 1985 includes $951,000 
for aid for fiscal year 1984 payable in fiscal year 1985 and 
$5,694,000 for aid for fiscal year 1985 payable in fiscal year 
1985.  
    The appropriations are based on aid entitlements of 
$6,342,000 for fiscal year 1984 and $6,699,000 for fiscal year 
1985.  
    Subd. 12.  [INDIAN EDUCATION.] (a) For certain Indian 
education programs there is appropriated:  
    $156,000.....1984, 
    $138,000.....1985.  
    The appropriations are based on aid entitlements of 
$156,000 for fiscal year 1984 and $163,000 for fiscal year 1985. 
    These appropriations are available for expenditure with the 
approval of the commissioner of education.  
    The commissioner shall not approve the payment of any 
amount to a school district pursuant to this subdivision unless 
that school district is in compliance with all applicable laws 
of this state.  
    Up to the following amounts may be distributed to the 
following school districts for fiscal year 1984:  $49,600 to 
Independent School Distict No. 309-Pine Point School; $8,750 to 
Independent School District No. 166; $13,500 to Independent 
School District No. 432; $12,700 to Independent School District 
No. 435; $38,100 to Independent School District No. 707; and 
$35,350 to Independent School District No. 38.  These amounts 
shall be expended only for the benefit of Indian students and 
for the purpose of meeting established state educational 
standards or statewide requirements.  
    Up to the following amounts may be distributed to the 
following school districts for fiscal year 1985:  $52,100 to 
Independent School Distict No. 309-Pine Point School; $9,200 to 
Independent School District No. 166; $14,200 to Independent 
School District No. 432; $13,350 to Independent School District 
No. 435; $40,050 to Independent School District No. 707; and 
$37,100 to Independent School District No. 38.  These amounts 
shall be expended only for the benefit of Indian students and 
for the purpose of meeting established state educational 
standards or statewide requirements.  
    These appropriations are available only if there will not 
be available for the districts enumerated in this subdivision 
for the applicable school year any operation support funds from 
the federal bureau of Indian affairs pursuant to the 
Johnson-O'Malley Act, Public Law 73-167 or 25 Code of Federal 
Regulations 273.31, or equivalent money from the same or another 
source.  
     (b) Before a district can receive moneys pursuant to this 
subdivision, the district must submit to the commissioner of 
education evidence that it has: 
    (i) Complied with the Uniform Financial Accounting and 
Reporting Standards Act, sections 121.90 to 121.917.  For each 
school year, compliance with section 121.908, subdivision 3a, 
shall require the school district to prepare one budget 
including the amount available to the district pursuant to this 
subdivision and one budget which does not include these moneys. 
The budget of that school district for the 1985-1986 school year 
prepared according to section 121.908, subdivision 3a, shall be 
submitted to the commissioner of education at the same time as 
1984-1985 budgets and shall not include any moneys appropriated 
in this subdivision;  
    (ii) Conducted a special education needs assessment and 
prepared a proposed service delivery plan according to Minnesota 
Statutes, sections 120.03 and 120.17; Public Law 94-142, an act 
of the 94th Congress of the United States cited as the 
"Education for All Handicapped Children Act of 1975"; and 
applicable state board of education rules; and 
     (iii) Compiled accurate daily pupil attendance records.  
     (c) Prior to approving payment of any amount to a school 
district pursuant to this subdivision, the commissioner shall 
review and evaluate each affected district's compliance with 
clause (b) and any other applicable laws, and each affected 
district's need for the moneys.  Each affected district's net 
unappropriated fund balance in all operating funds as of June 30 
of the previous school year shall be taken into consideration.  
    Subd. 13.  [CHEMICAL USE PROGRAMS.] For aid for chemical 
dependency programs authorized pursuant to section 124.246 there 
is appropriated:  
     $  965,000.....1984,
    $1,005,000.....1985.  
    The appropriation for fiscal year 1984 includes $135,000 
for aid for fiscal year 1983 payable in fiscal year 1984 and 
$830,000 for aid for fiscal year 1984 payable in fiscal year 
1984.  
    The appropriation for fiscal year 1985 includes $146,000 
for aid for fiscal year 1984 payable in fiscal year 1985 and 
$859,000 for aid for fiscal year 1984 payable in fiscal year 
1985.  
    The appropriations are based on aid entitlements of 
$977,000 for fiscal year 1984 and $1,011,000 for fiscal year 
1985.  
    Subd. 14.  [ARTS PLANNING GRANTS.] For Minnesota 
comprehensive arts in education planning grants, there is 
appropriated from the general fund to the department of 
education the sum indicated for the fiscal year ending June 30 
in the year designated:  
    $125,000.....1984.  
    Any unexpended balance remaining from the appropriation in 
this subdivision shall not cancel but shall be available for the 
second year of the biennium.  
    Subd. 15.  [CARDIOPULMONARY RESUSCITATION INSTRUCTION.] 
There is appropriated from the general fund to the department of 
education the sum of $34,000 for fiscal year 1984 for 
educational cooperative service units to purchase equipment 
needed for instruction in cardiopulmonary resuscitation.  The 
equipment shall be available for use by school districts.  Funds 
from this appropriation shall be transmitted to ECSU boards of 
directors.  The department of education shall issue grants to 
ECSUs based on the following criteria:  the number of school 
districts in the ECSU, the number of students served by the 
ECSU, and other resources available to the ECSU.  The sums 
appropriated are available until expended.  
    Subd. 16.  [PINE POINT SCHOOL.] There is appropriated from 
the general fund to the department of education for Independent 
School District No. 309, Pine Point School, the sum of $33,000 
for payment of an outstanding judgment related to unemployment 
compensation.  The sum shall be available until June 30, 1985.  
    Subd. 17.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] There is 
appropriated from the general fund to the maximum effort school 
loan fund the sum of $2,719,000 for the fiscal year ending June 
30, 1984, and $3,672,000 for the fiscal year ending June 30, 
1985.  Any unexpended balance of this appropriation for fiscal 
year 1984 shall not cancel but shall be available for the second 
year of the biennium.  
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in 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 section 124.46, subdivision 
3.  Notwithstanding the provisions of section 124.39, 
subdivision 5, any amount of the appropriation made in this 
section which is not needed to pay when due the principal and 
interest due on school loan bonds shall not be transferred to 
the debt service loan account of the maximum effort school loan 
fund but instead shall cancel and revert to the general fund.  
    Subd. 18.  [CANCELLATION AND PRORATION.] Except as provided 
in subdivisions 4, 5, and 6, any unexpended balance remaining 
from the appropriations in this section for 1984 shall cancel 
and shall not be available for the second year of the biennium. 
Except as provided in subdivisions 4 and 5, none of the amounts 
appropriated in this section shall be expended for a purpose 
other than the purpose indicated.  If the appropriation amount 
attributable to either year for the purpose indicated is 
insufficient, the aid for that year shall be prorated among all 
qualifying districts and the state shall not be obligated for 
any amount in excess of the appropriations in this section for 
these purposes.  
    Sec. 35.  [EFFECTIVE DATE.] 
    Section 6 is effective the day following final enactment. 

                                ARTICLE 7

                              MISCELLANEOUS
    Section 1.  [3.865] [LEGISLATIVE COMMISSION ON PUBLIC 
EDUCATION.] 
    Subdivision 1.  [ESTABLISHMENT.] There is established a 
legislative commission on public education.  The commission 
shall study issues relating to elementary and secondary 
education, including at least the following:  
    (a) education policy development and planning and 
recommendations for change to make education more effective;  
    (b) current and alternative financing formulas for 
education and recommendations for changes in the use of public 
money to fund education;  
    (c) current school district organization and administration 
and recommendations for more efficient use of available 
resources;  
    (d) current technology and alternative education delivery 
systems for Minnesota; and 
    (e) teacher preparation, certification, salaries, 
employment policies, and retention.  
    Subd. 2.  [MEMBERSHIP AND TERMS.] The commission shall 
consist of 12 members.  Six members shall be from the senate, 
including members of the minority caucus, and shall be appointed 
by the subcommittee on committees of the committee on rules and 
administration.  Six members shall be from the house of 
representatives, including members of the minority caucus, and 
shall be appointed by the speaker.  The chairs of the senate 
education committee, senate education aids subcommittee, house 
education committee, and house education finance division shall 
be members of the commission.  The members shall be appointed 
for two-year terms beginning on January 1 of each odd numbered 
year.  Vacancies on the commission shall be filled in the same 
manner as the original appointments.  
     Subd. 3.  [TERMS AND OFFICERS.] The commission shall elect 
a chair and a vice-chair from among its members.  The chair 
shall alternate biennially between a member of the senate and a 
member of the house.  The vice-chair shall be a house member 
when the chair is a senate member, and senate member when the 
chair is a house member. 
     Subd. 4.  [GOVERNOR'S REPRESENTATIVE.] The governor shall 
appoint a person to serve as liaison between the governor and 
the commission. 
     Subd. 5.  [ADVISORY COMMITTEE.] The commission may appoint 
advisory committees to assist it as needed.  The advisory 
committees shall meet at the discretion of the commission. 
     Subd. 6.  [ASSISTANCE OF OTHER AGENCIES.] The commission 
may request information from any state officer or agency to 
assist the commission in performing its duties.  The officer or 
agency is authorized and directed to promptly furnish any data 
requested. 
     Subd. 7.  [STAFF.] The commission may employ professional, 
technical, consulting, and clerical services.  The commission 
may use legislative staff to provide legal counsel, research, 
secretarial, and clerical assistance.  
     Subd. 8.  [EXPENSES AND REIMBURSEMENT.] The members of the 
commission and its assistants shall be reimbursed for all 
expenses actually incurred in the performance of their duties. 
Expenses of the commission shall be approved by the chair and 
the expenses shall be paid in the same manner as other state 
expenses are paid. 
     Subd. 9.  [REPORT.] By January 15 of each year, the 
commission shall report to the education committees of the 
legislature on its findings and recommendations, including 
information related to the funding of education.  
    Sec. 2.  Minnesota Statutes 1982, section 6.54, is amended 
to read: 
    6.54 [EXAMINATION OF MUNICIPAL RECORDS PURSUANT TO 
PETITION.] 
    The registered voters in a home rule charter or statutory 
city or town may petition the state auditor to examine the 
books, records, accounts, and affairs of the home rule charter 
or statutory city, town, or of any organizational unit, 
activity, project, enterprise, or fund thereof; and the scope of 
the examination may be limited by the petition, but the 
examination shall cover, at least, all cash received and 
disbursed and the transactions relating thereto, provided that 
the state auditor shall not examine more than the six latest 
years preceding the circulation of the petition, unless it 
appears to the state auditor during his the examination that the 
audit period should be extended to permit a full recovery under 
bonds furnished by public officers or employees, and may if it 
appears to him the auditor in the public interest confine the 
period or the scope of audit or both period and scope of audit, 
to less than that requested by the petition.  In the case of a 
home rule charter or statutory city or town, the petition shall 
be signed by a number of registered voters at least equal to 20 
percent of those voting in the last presidential election.  The 
freeholders eligible voters of any school district, as defined 
in section 123.32, subdivision 1a, may petition the state 
auditor and he, who shall be subject to the same restrictions 
regarding the scope and period of audit, provided that the 
petition shall be signed by at least ten freeholders eligible 
voters for each 50 resident pupils in average daily membership 
during the preceding school year as shown on the records in the 
office of the commissioner of education.  In no case shall the 
petition for an examination of a town bear the names of less 
than 25 registered voters; and provided, that in the case of 
school districts, the petition shall be signed by at least ten 
freeholders eligible voters.  At the time it is circulated, 
every petition shall contain a statement that the cost of the 
audit will be borne by the city, town, or school district as 
provided by law.  Thirty days before the petition is delivered 
to the state auditor it shall be presented to the appropriate 
city, town or school district clerk and the county auditor.  The 
county auditor shall determine and certify whether the petition 
is signed by the required number of registered voters or 
freeholders eligible voters as the case may be.  The certificate 
shall be conclusive evidence thereof in any action or proceeding 
for the recovery of the costs, charges and expenses of any 
examination made pursuant to the petition. 
    Sec. 3.  Minnesota Statutes 1982, section 6.62, subdivision 
1, is amended to read: 
    Subdivision 1.  [LEVY OF TAX.] Counties, cities and towns 
are authorized, if necessary, to levy, over and above tax levy 
limitations for other governmental purposes, an amount 
sufficient to pay the expense of a post-audit by the state 
auditor. 
    A school district is authorized to levy an amount 
sufficient to pay for the expense of a post-audit by the state 
auditor if the audit is performed at the discretion of the state 
auditor pursuant to section 6.51 or if the audit has been 
requested through a petition by freeholders eligible voters 
pursuant to section 6.54.  A school district is not authorized 
to levy these amounts if the post-audit by the state auditor is 
requested by the school board pursuant to section 6.55. 
    Sec. 4.  Minnesota Statutes 1982, section 120.0751, 
subdivision 3, is amended to read: 
    Subd. 3.  [CRITERIA FOR APPROVAL.] In granting or denying 
approving or disapproving the application the state board of 
education shall consider the following criteria:  
    (a) if the circumstances of the pupil are similar or 
analogous to the exceptions permitted by section 120.075, 
whether attending school in the district of residence creates a 
particular hardship for the pupil; and (b) whether the 
circumstances of the pupil are similar or analogous to the 
exceptions permitted by section 120.075. or 
    (b) if the pupil has been continuously enrolled for at 
least two years in a district of which the pupil was not a 
resident because of an error made in good faith about the actual 
district of residence, whether attending school in the district 
of residence creates a particular hardship for the pupil.  If 
the board finds that a good faith error was made and that 
attending school in the district of residence would create a 
particular hardship for the siblings of that pupil or foster 
children of that pupil's parents, it may separately approve an 
application for any or all of the siblings of the pupil who are 
related by blood, adoption, or marriage and for foster children 
of the pupil's parents.  
    Sec. 5.  [120.191] [SPECIAL EDUCATION DIRECTOR.] 
    The authority for the selection and employment of the 
director of a special education cooperative established pursuant 
to section 120.17 or 471.59 shall be vested in the governing 
board of the cooperative.  Notwithstanding the provisions of 
section 125.12, subdivision 6a or 6b, no individual shall have a 
right to employment as a director based on seniority or order of 
employment by the cooperative.  
    Sec. 6.  Minnesota Statutes 1982, section 121.15, is 
amended to read: 
    121.15 [PLANS AND SPECIFICATIONS FOR SCHOOL BUILDINGS 
REVIEW AND COMMENT FOR SCHOOL DISTRICT CONSTRUCTION.] 
    The state board shall prescribe rules for school sites and 
for the mechanical equipment, erection, enlargement, and change 
of school buildings.  All plans and specifications for the 
erection, enlargement, and change of school buildings shall 
first be submitted to the state department of education for 
approval before the contract is let and no new school buildings 
shall be erected or any building enlarged or changed until the 
plans and specifications have been submitted to, and approved 
by, the state department.  The state board shall include in such 
rules those made, from time to time, by the state commissioner 
of health relative to sanitary standards for toilets, water 
supply, and disposal of sewage in public school buildings.  In 
all other respects the authority to make rules for public school 
buildings shall be vested in the state board, which shall have 
the power to prepare and furnish to local school boards plans 
and specifications for temporary school buildings, containing 
two classrooms or less.  The state board in approving 
construction plans may specifically qualify its approval as 
limited solely to physical plant, plans and specifications and 
it may specifically reserve its approval as to the advisability 
of construction from an educational program standpoint.  Under 
such rules and procedure as the state board shall prescribe, the 
state department may condemn school buildings and sites which 
are unfit or unsafe for use as such.  
    Subdivision 1.  [CONSULTATION.] A school district shall 
consult with the department of education before developing any 
plans and specifications to construct, remodel, or improve the 
building or site of an educational facility.  This consultation 
shall occur before a referendum for bonds, solicitation for 
bids, or use of capital funds according to section 275.125, 
subdivision 11a, clause (c), is initiated.  
    Subd. 2.  [PLAN SUBMITTAL.] The department of education, 
after the consultation required in subdivision 1, may require a 
school district engaging in a construction, remodeling, or site 
improvement project to submit for approval:  
    (a) two sets of preliminary plans for each new building or 
addition, and 
    (b) one set of final plans for each construction, 
remodeling, or site improvement project.  The department of 
education shall approve or disapprove the plans within 60 days 
after submission.  A school district shall not award contracts 
before the department approves the plans.  
    Final plans shall meet all applicable state laws, rules, 
and codes concerning public buildings, including sections 16.83 
to 16.87.  The department of education's approval shall be 
limited to compliance with applicable state laws, rules, and 
codes and shall reasonably conform to the recommended 
educational standards established by the department of 
education.  The department may furnish to a school district 
plans and specifications for temporary school buildings 
containing two classrooms or less.  
    Subd. 3.  [FINAL PLANS.] If no construction contract has 
been awarded within two years of approval, the approval shall no 
longer be valid.  After approval, final plans and the approval 
shall be filed with the department of education.  If substantial 
changes are made to plans after final approval, documents 
reflecting the changes shall be submitted to the department of 
education for approval.  Upon completing a project, the school 
board shall certify to the department that the project was 
completed according to the approved plans.  
    Subd. 4.  [CONDEMNATION OF SCHOOL BUILDINGS.] The 
department of education may condemn school buildings and sites 
which the state board of education determines are unfit or 
unsafe for that use.  
    Subd. 5.  [RULEMAKING.] The state board of education may 
adopt rules for public school buildings.  
    Subd. 6.  [REVIEW AND COMMENT.] No referendum for bonds or 
solicitation of bids for new construction, expansion, or 
remodeling of an educational facility which requires a capital 
expenditure in excess of $400,000 per school site shall be 
initiated prior to review and comment by the commissioner.  A 
school board shall not separate portions of a single project 
into components to avoid the requirements of this subdivision.  
    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 population proposed to be served, including census 
findings and projections 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 capital 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;  
    (e) so far as is known, existing facilities within the area 
to be served that offer the same or similar service; the extent 
existing facilities or services are used; the extent to which 
space is available from other sources, including institutions 
for higher education or other public buildings; and the 
anticipated effect that the proposal will have on existing 
facilities and services;  
    (f) the anticipated benefit to the area that will result 
from the facility;  
    (g) if known, the relationship of the proposed construction 
to any priorities which 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; and 
    (i) desegregation requirements that cannot be met by any 
other reasonable means.  
    Subd. 8.  [REVIEW OF PROPOSALS.] In reviewing each 
proposal, the commissioner shall submit to the school board, 
within 60 days of receiving the proposal, the review and comment 
about the educational and economic advisability of the project. 
The review and comment shall be based on information submitted 
with the proposal and other information the commissioner 
determines is necessary.  
    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, the school board shall publish the 
commissioner's review and comment in a legal newspaper of 
general circulation in the area.  Supplementary information 
shall be available to the public.  
    Subd. 10.  [REPORT.] Before January 15 of each year, the 
commissioner shall report to the legislature about the number 
and nature of proposals for projects submitted according to this 
section, the nature of the review and comment on the educational 
and economic advisability, and any recommendations.  
    Sec. 7.  Minnesota Statutes 1982, section 121.908, is 
amended to read: 
    121.908 [REQUIREMENT FOR ACCOUNTING, BUDGETING AND 
REPORTING.] 
    Subdivision 1.  On or before June 30, 1977, each Minnesota 
school district shall adopt the uniform financial accounting and 
reporting standards for Minnesota school districts provided for 
in section 121.902. 
    Subd. 2.  Each Minnesota school district shall submit to 
the commissioner by August 15, 1977 and August 15 of each year 
thereafter, an unaudited financial statement for the preceding 
fiscal year.  This statement shall be submitted on forms 
prescribed by the commissioner after consultation with the 
advisory council on uniform financial accounting and reporting 
standards. 
    Subd. 3.  Prior to June 30 By December 31 of the calendar 
year following of the submission of the unaudited financial 
statement, the school district shall provide to the commissioner 
and state auditor an audited financial statement prepared in a 
form which will allow comparison with and correction of material 
differences in the unaudited statement.  
    Subd. 3a.  Prior to July 1, 1978 and July 1 of each year 
thereafter, the school board of each district shall approve and 
adopt its revenue and expenditure budgets for the next school 
year.  The budget document so adopted shall be considered an 
expenditure-authorizing or appropriations document.  No funds 
shall be expended by any board or district for any purpose in 
any school year prior to the adoption of the budget document 
which authorizes that expenditure, or prior to an amendment to 
the budget document by the board to authorize the expenditure.  
Expenditures of funds in violation of this subdivision shall be 
considered unlawful expenditures. 
    Subd. 4.  Each Minnesota school district shall submit to 
the department by August 15, 1977, and by August 15 of each year 
thereafter, on forms prescribed by the commissioner, the revenue 
and expenditure budgets adopted for that fiscal year. 
    Subd. 5.  All governmental units formed by joint powers 
agreements entered into by school districts pursuant to sections 
120.17, 123.351, 471.59, or any other law and all educational 
cooperative service units shall be subject to the provisions of 
this section. 
    Sec. 8.  Minnesota Statutes 1982, section 121.936, is 
amended by adding a subdivision to read: 
    Subd. 4a.  By July 1, 1984, the department of education 
shall develop and implement an alternative reporting system for 
submission of financial data in summary form.  This system shall 
accommodate the use of a microcomputer finance system to be 
developed and maintained by the department of education.  The 
alternative reporting system must comply with sections 121.90 to 
121.917.  The provisions of this subdivision shall not be 
construed to require the department to purchase computer 
hardware nor to prohibit the department from purchasing services 
from any regional management information center or the Minnesota 
educational computing consortium.  
    Sec. 9.  Minnesota Statutes 1982, section 122.23, 
subdivision 2, is amended to read: 
    Subd. 2.  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.  The 
resolution or petition may propose either 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 the bonded 
debt previously incurred by any component district as provided 
in subdivision 16b.  The resolution or petition may also propose 
that referendum levies previously approved by voters of the 
component districts pursuant to section 275.125, subdivision 2d, 
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 that 
the board of the newly created district consist of seven 
members, and may also propose the establishment of 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.  If more than one request for a plat is received by a 
county auditor and the requests involve parts of identical 
districts, he shall forthwith prepare a plat which in his 
opinion best serves the educational interests of the inhabitants 
of the districts or areas affected.  The plat shall show: 
    (a) Boundaries of the proposed district, as determined by 
the county auditor, and present district boundaries, 
    (b) The location of school buildings in the area proposed 
as a new district and the location of school buildings in 
adjoining districts, 
    (c) The boundaries of any proposed separate election 
districts, in accordance with the provisions of section 123.32, 
and 
    (d) Other pertinent information as determined by the county 
auditor. 
    Sec. 10.  Minnesota Statutes 1982, 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 assessed valuation of property in the 
proposed district, 
    (b) If a part of any district is included in the proposed 
new district, the adjusted assessed valuation of the property 
and the approximate number of pupils residing in the part of the 
district included shall be shown separately and the adjusted 
assessed valuation 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 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. 11.  Minnesota Statutes 1982, section 122.531, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONSOLIDATION AND VOLUNTARY DISSOLUTION: 
REFERENDUM LEVIES.] As of the effective date of a consolidation 
pursuant to section 122.23 or the voluntary dissolution of a 
district and its attachment to one or more existing districts 
pursuant to section 122.22, the authorization for all referendum 
levies previously approved by the voters of all affected 
districts for those districts pursuant to section 275.125, 
subdivision 2d, or its predecessor or successor provision, is 
canceled.  However, if all of the territory of any independent 
district is included in the newly created enlarged district, and 
if the adjusted assessed valuation of taxable property in that 
territory comprises 90 percent or more of the adjusted assessed 
valuation of all taxable property in a newly created or an 
enlarged district, the board of the newly created or enlarged 
district may levy the increased amount previously approved by a 
referendum in the pre-existing independent district upon all 
taxable property in the newly created or enlarged district.  Any 
new referendum levy shall be certified only after approval is 
granted by the voters of the entire newly created or enlarged 
district in an election pursuant to section 275.125, subdivision 
2d, or its successor referendum provision. 
    Sec. 12.  Minnesota Statutes 1982, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [CONSOLIDATION; MAXIMUM AUTHORIZED REFERENDUM 
LEVIES.] As of the effective date of a consolidation pursuant to 
section 122.23, if the plan for consolidation so provides, or if 
the plan for consolidation makes no provision concerning 
referendum levies, the authorization for all referendum levies 
previously approved by the voters of all affected districts for 
those districts pursuant to section 275.125, subdivision 2d, or 
its predecessor provision shall be recalculated as provided in 
this subdivision.  The referendum levy authorization for the 
newly created district shall be the millage that would raise an 
amount equal to the combined dollar amount of the referendum 
levies authorized by each of the component districts for the 
year preceding the consolidation, unless the referendum levy 
authorization of the newly created district is subsequently 
modified pursuant to section 275.125, subdivision 2d.  If the 
referendum levy authorizations for each of the component 
districts were limited to a specified number of years, the 
referendum levy authorization for the newly created district 
shall continue for a period of time equal to the longest period 
authorized for any component district.  If the referendum levy 
authorization of any component district is not limited to a 
specified number of years, the referendum levy authorization for 
the newly created district shall not be limited to a specified 
number of years.  
     Sec. 13.  Minnesota Statutes 1982, section 122.531, is 
amended by adding a subdivision to read:  
    Subd. 2b.  [ALTERNATIVE METHOD.] As of the effective date 
of a consolidation pursuant to section 122.23, if the plan for 
consolidation so provides, the authorization for all referendum 
levies previously approved by the voters of all affected 
districts for those districts pursuant to section 275.125, 
subdivision 2d, or its predecessor provision shall be combined 
as provided in this subdivision.  The referendum levy 
authorization for the newly created district may be any millage 
provided in the plan for consolidation, but may not exceed the 
millage that would raise an amount equal to the combined dollar 
amount of the referendum levies authorized by each of the 
component districts for the year preceding the consolidation. If 
the referendum levy authorizations for each of the component 
districts were limited to a specified number of years, the 
referendum levy authorization for the newly created district 
shall continue for a period of time equal to the longest period 
authorized for any component district.  If the referendum levy 
authorization of any component district is not limited to a 
specified number of years, the referendum levy authorization for 
the newly created district shall not be limited to a specified 
number of years.  The referendum levy authorization for the 
newly created district may be modified pursuant to section 
275.125, subdivision 2d.  
    Sec. 14.  Minnesota Statutes 1982, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 2c.  If the plan for consolidation provides for 
discontinuance of referendum levies previously approved by 
voters of the component districts pursuant to section 275.125, 
subdivision 2d, or its predecessor provision, the newly created 
district shall not make a referendum levy unless the voters of 
the newly created district authorize a referendum levy pursuant 
to section 275.125, subdivision 2d. 
    Sec. 15.  Minnesota Statutes 1982, section 123.32, is 
amended by adding a subdivision to read: 
    Subd. 29.  [REQUIREMENTS FOR PETITIONS.] Any petition to a 
school board authorized in this section or section 275.125 or 
any other law which requires the board to submit an issue to 
referendum or election shall meet the following requirements to 
be valid.  
    (1) Each page of the petition shall contain a heading at 
its top which specifies the particular action the board is being 
petitioned to take.  The signatures on any page which does not 
contain such a heading shall all be invalidated.  All pages of 
the petition shall be assembled and filed with the board as a 
single instrument.  
    (2) Each page of the petition shall contain an 
authentication signed by the circulator of the petition 
specifying as follows:  
    I personally have circulated this page of the petition, all 
signatures were made in my presence, I believe that each person 
signed his or her own name and that each person who has signed 
is eligible to vote in a school district election according to 
Minnesota Statutes, section 123.32.  
Signed:  ................................
         Signature of Petition Circulator 
Date:    ................................. 
    The signatures on any page which does not contain such an 
authentication shall all be invalidated.  
    (3) Each signer of the petition shall personally sign his 
own name in ink or indelible pencil and shall indicate after his 
name his place of residence by street and number, or other 
description sufficient to identify the place.  Except as 
provided in clause (4) of this subdivision, any signature which 
does not meet these requirements shall be invalidated.  
    (4) An individual who is unable to write his name shall be 
required to make his mark on the petition.  The circulator of 
the petition shall certify the mark by signing the individual's 
name and address and shall thereafter print the phrase "mark 
certified by petition circulator."  
    (5) A petition to be valid must contain the minimum number 
of valid signatures of eligible voters specified in the law 
authorizing the petition and election.  
    Sec. 16.  Minnesota Statutes 1982, section 123.33, 
subdivision 10, is amended to read: 
    Subd. 10.  The school board of any school district of this 
state by a two-thirds vote may become a member of the Minnesota 
school boards association or the Minnesota association of public 
schools, or the metropolitan area school board association, and 
appoint one or more of its members to attend its annual 
meeting.  The amount of annual membership dues in the 
association and actual and necessary expense incurred in 
attending such meeting shall be paid as other expenses of the 
district are paid.  The school board of any school district of 
this state may maintain such membership and pay membership dues 
only in the event the associations file annual financial 
statements showing detailed expenditures and receipts with the 
commissioner of education no later than October 1 of each year. 
The statements to the commissioner shall be made on forms 
prescribed by him no later than July 15 of each year.  
    Sec. 17.  Minnesota Statutes 1982, section 123.33, 
subdivision 14, is amended to read:  
    Subd. 14.  The school board of any school district of this 
state by a two-thirds vote may become a member of an association 
of vocational schools and may appoint one or more of its members 
to attend the annual meeting of such association.  The amount of 
annual membership dues in the association and actual and 
necessary expenses incurred in attending such meeting shall be 
paid as other expenses of the district are paid.  The school 
board of any school district of this state may maintain such 
membership and pay membership dues only in the event the 
association files annual financial statements showing detailed 
expenditures and receipts with the commissioner of education no 
later than October 1 of each year.  The statements to the 
commissioner shall be made on forms prescribed by him no later 
than July 15 of each year.  
    Sec. 18.  Minnesota Statutes 1982, 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 a nonvoting member of the school board 
but not entitled to vote therein.  The authority for selection 
and employment of a superintendent shall be vested in the school 
board in all cases.  Notwithstanding the provisions of section 
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 the any district.  The superintendent in such 
districts of a district shall visit the schools of the district, 
and exercise a general supervision over them, and report their 
condition to the board, with proper recommendations, when he 
deems it advisable, or when requested by the board.  He shall 
make recommendations to the board concerning the employment and 
dismissal of teachers.  He shall superintend the grading of the 
schools and examinations for promotions and perform such other 
duties as the board shall prescribe.  He shall make directly to 
the commissioner such reports as shall be required perform the 
following:  
    (a) visit and supervise the schools in the district, report 
and make recommendations about their condition when advisable or 
on request by the board;  
     (b) recommend to the board employment and dismissal of 
teachers;  
     (c) superintend school grading practices and examinations 
for promotions;  
     (d) make reports required by the commissioner of education; 
and 
     (e) perform other duties prescribed by the board.  
    Sec. 19.  Minnesota Statutes 1982, section 123.351, 
subdivision 4, is amended to read: 
    Subd. 4.  [POWERS AND DUTIES.] (a) The center board shall 
have the general charge of the business of the center and the 
ownership of facilities.  Where applicable, section 123.36, 
shall apply.  The center board may not issue bonds in its 
behalf.  Each participating district may issue its bonds for the 
purpose of acquisition and betterment of center facilities in 
the amount certified by the center board to such participating 
district in accordance with chapter 475. 
    (b) The center board (1) may furnish vocational offerings 
to any eligible person residing in any participating district; 
(2) may provide special education for the handicapped and 
disadvantaged; and (3) may provide any other educational 
programs or services agreed upon by the participating 
districts.  Academic offerings shall be provided only under the 
direction of properly licensed academic supervisory personnel. 
    (c) In accordance with subdivision 5, clause (b), the 
center board shall certify to each participating district the 
amount of funds assessed to the district as its proportionate 
share required for the conduct of the educational programs, 
payment of indebtedness, and all other proper expenses of the 
center. 
    (d) The center board shall employ and contract with 
necessary qualified teachers and administrators and may 
discharge the same for cause pursuant to section 125.12.  The 
authority for selection and employment of a director shall be 
vested in the center board.  Notwithstanding the provisions of 
section 125.12, subdivision 6a or 6b, no individual shall have a 
right to employment as a director based on seniority or order of 
employment by the center.  The board may employ and discharge 
other necessary employees and may contract for other services 
deemed necessary. 
    (e) The center board may provide an educational program for 
secondary and adult vocational phases of instruction. The high 
school phase of its educational program shall be offered as a 
component of the comprehensive curriculum offered by each of the 
participating school districts. Graduation shall be from the 
student's resident high school district.  Insofar as applicable, 
sections 123.35 to 123.40, shall apply. 
    (f) The center board may prescribe rates of tuition for 
attendance in its programs by adults and nonmember district 
secondary students. 
    Sec. 20.  Minnesota Statutes 1982, section 123.36, 
subdivision 9, is amended to read: 
    Subd. 9.  The board may contract for the furnishing of heat 
for its building for such terms as it may deem for the best 
interest of the district, not exceeding ten years.  However, a 
district may enter into a contract for a period not to exceed 30 
years for a district heating system.  Where it is necessary to 
lay mains or pipes to connect these buildings with a heating 
system, the district is authorized to advance all, or any part 
of the cost thereof upon such terms and conditions as shall be 
agreed upon. 
    Sec. 21.  Minnesota Statutes 1982, section 123.39, 
subdivision 4, is amended to read: 
    Subd. 4.  The board may provide for the instruction of any 
resident pupil in another district when inadequate room, 
distance to school, unfavorable road conditions, or other facts 
or conditions make attendance in his own district unreasonably 
difficult or impractical, in which case such district shall pay 
to the district so attended the tuition agreed upon or charged, 
pursuant to section 124.18, subdivision 2, and may provide 
transportation; provided, that such pupil shall continue to be a 
pupil of the district of his residence for the payment of 
apportionment and other state aids. 
    Sec. 22.  Minnesota Statutes 1982, section 124.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state board shall supervise 
distribution of the school aids and grants in accordance with 
law.  It may make rules and regulations consistent with law for 
such the distribution which will to enable districts to perform 
efficiently the services required by law and further education 
in the state, including reasonable requirements for such the 
reports and accounts to it as will assure accurate and lawful 
apportionment of aids.  State and federal aids and discretionary 
or entitlement grants distributed by the state board shall not 
be subject to the contract approval procedures of the 
commissioner of administration or chapter 16.  The commissioner 
of education shall adopt internal procedures for administration 
and monitoring of aids and grants.  
    Sec. 23.  Minnesota Statutes 1982, section 124.15, 
subdivision 5, is amended to read:  
    Subd. 5.  [VIOLATION; AID REDUCTION.] If the violation 
specified is corrected within the time permitted, or if the 
commissioner on being notified of the district board's decision 
to dispute decides such the violation does not exist, or if the 
state board decides after hearing no violation specified in the 
commissioner's notice existed at the time thereof of it, or that 
such as any which existed were corrected within the time 
permitted, there will shall be no reduction of special state 
aids payable to such the school district;.  Otherwise special 
state aids payable to the district for the year in which the 
violation occurred will shall be reduced as follows:  The total 
amount of special state aids to which the district may be 
entitled will shall be reduced in the proportion that the period 
during which a specified violation continued, computed from the 
last day of the time permitted for correction, bears to the 
total number of days school is held in the district during the 
year in which such a violation exists, multiplied by 60 percent 
of the product of the foundation aid formula allowance times its 
total pupil units for that year. 
    Sec. 24.  Minnesota Statutes 1982, section 124.19, 
subdivision 3, is amended to read:  
    Subd. 3.  [UNCERTIFIED TEACHERS; AID REDUCTION.] When a 
district employs a teacher one or more teachers that who do 
not hold a valid teaching certificate, special state aid shall 
be withheld in the proportion that the number of such teachers 
is to the total number of teachers employed by the district, 
multiplied by 60 percent of the product of the foundation aid 
formula allowance times its total pupil units for the year in 
which the employment occurred. 
    Sec. 25.  Minnesota Statutes 1982, section 124.43, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVIEW BY COMMISSIONER.] (a) To the extent 
moneys are from time to time available hereunder, the 
commissioner may, after review and a favorable recommendation by 
the state board of education, make recommend to the legislature 
capital loans to school districts.  Proceeds of the loans shall 
be used only for sites for school buildings and for acquiring, 
bettering, furnishing, or equipping school buildings under 
contracts to be entered into within 12 months from and after the 
date on which each loan is granted.  Applications with the 
accompanying data specified in subdivision 2 shall be filed 
between October 1 of any year and the following June 1.  
    (b) Any board which intends to submit an application for a 
capital loan shall submit a proposal to the commissioner for 
review and comment pursuant to section 122.90 121.15, and the 
commissioner shall prepare a review and comment on the proposed 
facility, regardless of the amount of the capital expenditure 
required to construct the facility.  The state board shall not 
make a favorable recommendation on an application for a capital 
loan for any facility unless:  
    (1) the facility receives a favorable review and comment 
pursuant to section 122.90 121.15; and 
    (2) the state board determines that 
    (A) the facilities are needed to replace facilities 
dangerous to the health and safety of pupils, or to provide for 
pupils for whom no adequate facilities exist; 
    (B) the facilities could not be made available through 
dissolution and attachment of the district to another district 
or through pairing, interdistrict cooperation, or consolidation 
with another district, or through the purchase or lease of 
facilities from existing institutions within the area.  The 
preference of the school district regarding reorganization shall 
not be a criterion used by the state board in determining 
whether the facilities could be made available through 
reorganization;  
    (C) the facilities are comparable in size and quality to 
facilities recently constructed in other districts of similar 
enrollment; and 
    (D) the district's need for the facilities is comparable to 
needs which comparable districts are meeting through local bond 
issues. 
    The state board may recommend that the loan be approved in 
a reduced amount in order to meet the foregoing criteria.  If 
the state board recommends that a loan not be approved, the 
commissioner shall not approve recommend approval of the loan, 
and.  If the state board recommends that the loan be approved in 
a reduced amount, the commissioner shall not approve recommend 
approval of a loan larger than that recommended by the state 
board.  
     (c) As part of reviewing an application for a capital loan, 
the commissioner of education shall prepare estimated yearly 
repayments by the school district and the estimated amount of 
principal and interest that may be forgiven after the term of 
the loan.  These estimates shall assume no growth in assessed 
valuation over the term of the loan, shall assume a 16 mill 
levy, and shall be prepared using a methodology approved by the 
commissioner of finance.  The commissioner of education shall 
use a discount factor provided by the commissioner of finance in 
determining the present value of the estimated amount of 
interest and principal which may be forgiven after the term of 
the loan.  
    (c) (d) No loan shall be approved recommended for approval 
for any district exceeding an amount computed as follows: 
    (1) The amount voted by the district under subdivision 2; 
    (2) Plus the aggregate principal amount of general 
obligation bonds of the district outstanding on the date of 
approval, not exceeding the limitation on net debt of the 
district in section 475.53, subdivision 4, or 24 percent of the 
adjusted assessed value, whichever is less; 
    (3) Less the maximum net debt permissible for the district 
on the date of approval, under the limitation in section 475.53, 
subdivision 4, or 24 percent of the adjusted assessed value, 
whichever is less; and 
    (4) Less any amount by which the amount voted exceeds the 
total cost of the facilities for which the loan is granted, as 
estimated in accordance with subdivision 4, provided that the 
loan may be approved in an amount computed as provided in 
clauses (1) to (3), subject to subsequent reduction in 
accordance with this clause. 
    Sec. 26.  [124.435] [APPROVAL BY LEGISLATURE.] 
    After review of an application for a capital loan, the 
commissioner of education shall submit the application to the 
education committees of the legislature.  The legislature may 
approve, disapprove, or modify the application.  After the 
legislature has approved the application, the commissioner shall 
grant the loan for the purposes and in the amount specified by 
the legislature.  
     Sec. 27.  [125.032] [LICENSURE; COMMUNITY EDUCATION 
INSTRUCTORS.] 
     Subdivision 1.  [EXEMPTION.] Notwithstanding the provisions 
of any law to the contrary and except as otherwise provided in 
this section, a person who teaches in a community education 
program established pursuant to sections 121.85 to 121.88 is 
exempt from all licensure requirements.  
     Subd. 2.  [EXCEPTIONS.] A person who teaches in a community 
education program which qualifies for aid pursuant to section 
124.26 shall continue to meet licensure requirements as a 
teacher.  A person who teaches in an early childhood and family 
education program which is offered through a community education 
program and which qualifies for per capita aid pursuant to 
section 124.271 shall continue to meet licensure requirements as 
a teacher.  A person who teaches in a community education course 
which is offered for credit for graduation to persons under 18 
years of age shall continue to meet licensure requirements as a 
teacher.  A person who teaches a driver training course which is 
offered through a community education program to persons under 
18 years of age shall be licensed by the board of teaching.  A 
license which is required for an instructor in a community 
education program pursuant to this subdivision shall not be 
construed to bring an individual within the definition of a 
teacher for purposes of section 125.12, subdivision 1, or 
section 125.17, subdivision 1, clause (a).  A community 
education instructor shall not be defined as a teacher pursuant 
to section 179.63, subdivision 13, or be a member of a teacher 
bargaining unit solely as a result of that individual's 
employment in a community education program.  
    Sec. 28.  Minnesota Statutes 1982, section 125.05, is 
amended by adding a subdivision to read: 
    Subd. 5.  [PROVISIONAL LICENSES; PROHIBITED.] The board of 
teaching shall grant no new provisional licenses.  By January 
15, 1984, the state board and commissioner of education shall 
submit a report to the education committees of the legislature 
with recommendations on provisional licenses.  
    Sec. 29.  Minnesota Statutes 1982, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [NONPROVISIONAL LICENSE DEFINED.] For purposes 
of this section, "nonprovisional license" shall mean an 
entrance, continuing, or life license.  
    Sec. 30.  Minnesota Statutes 1982, section 125.12, 
subdivision 6a, is amended to read: 
    Subd. 6a.  [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 
school board and the exclusive bargaining representative of the 
teachers may negotiate a plan providing for unrequested leave of 
absence without pay or fringe benefits for as many teachers as 
may be necessary because of discontinuance of position, lack of 
pupils, financial limitations, or merger of classes caused by 
consolidation of districts.  Failing to successfully negotiate 
such a plan, the provisions of subdivision 6b shall apply.  The 
negotiated plan shall not include provisions which would result 
in the exercise of seniority by a teacher holding a provisional 
license, other than a vocational education license, contrary to 
the provisions of subdivision 6b, clause (c), or the 
reinstatement of a teacher holding a provisional license, other 
than a vocational education license, contrary to the provisions 
of subdivision 6b, clause (e).  The provisions of section 179.72 
shall not apply for the purposes of this subdivision. 
    Sec. 31.  Minnesota Statutes 1982, section 125.12, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [UNREQUESTED LEAVE OF ABSENCE.] The school board 
may place on unrequested leave of absence, without pay or fringe 
benefits, as many teachers as may be necessary because of 
discontinuance of position, lack of pupils, financial 
limitations, or merger of classes caused by consolidation of 
districts.  The unrequested leave shall be effective at the 
close of the school year.  In placing teachers on unrequested 
leave, the board shall be governed by the following provisions: 
    (a) The board may place probationary teachers on 
unrequested leave first in the inverse order of their 
employment.  No teacher who has acquired continuing contract 
rights shall be placed on unrequested leave of absence while 
probationary teachers are retained in positions for which the 
teacher who has acquired continuing contract rights is licensed; 
    (b) Teachers who have acquired continuing contract rights 
shall be placed on unrequested leave of absence in fields in 
which they are licensed in the inverse order in which they were 
employed by the school district.  In the case of equal 
seniority, the order in which teachers who have acquired 
continuing contract rights shall be placed on unrequested leave 
of absence in fields in which they are licensed shall be 
negotiable;  
    (c) Notwithstanding the provisions of clause (b), no 
teacher shall be entitled to exercise any seniority when that 
exercise results in that teacher being retained by the district 
in a field for which the teacher holds only a provisional 
license, as defined by the board of teaching, unless that 
exercise of seniority results in the placement on unrequested 
leave of absence of another teacher who also holds a provisional 
license in the same field.  The provisions of this clause shall 
not apply to vocational education licenses;  
    (c) (d) Notwithstanding clauses (a) and, (b) and (c), if 
either the placing of a probationary teacher on unrequested 
leave before a teacher who has acquired continuing rights, or 
the placing of a teacher who has acquired continuing contract 
rights on unrequested leave before another teacher who has 
acquired continuing contract rights but who has greater 
seniority, or the restriction imposed by the provisions of 
clause (c) would place the district in violation of its 
affirmative action program, the district may retain the 
probationary teacher or, the teacher with less seniority, or the 
provisionally licensed teacher; 
    (d) (e) Teachers placed on unrequested leave of absence 
shall be reinstated to the positions from which they have been 
given leaves of absence or, if not available, to other available 
positions in the school district in fields in which they are 
licensed.  Reinstatement shall be in the inverse order of 
placement on leave of absence.  No teacher shall be reinstated 
to a position in a field in which the teacher holds only a 
provisional license, other than a vocational education license, 
while another teacher who holds a nonprovisional license in the 
same field remains on unrequested leave.  The order of 
reinstatement of teachers who have equal seniority and who are 
placed on unrequested leave in the same school year shall be 
negotiable; 
    (e) (f) No appointment of a new teacher shall be made while 
there is available, on unrequested leave, a teacher who is 
properly licensed to fill such vacancy, unless the teacher fails 
to advise the school board within 30 days of the date of 
notification that a position is available to him that teacher, 
that he or she may return to employment and that he or she will 
assume the duties of the position to which appointed on a future 
date determined by the board; 
    (f) (g) A teacher placed on unrequested leave of absence 
may engage in teaching or any other occupation during the period 
of this leave; 
    (g) (h) The unrequested leave of absence shall not impair 
the continuing contract rights of a teacher or result in a loss 
of credit for previous years of service; 
    (h) (i) The unrequested leave of absence of a teacher who 
is placed on unrequested leave of absence prior to January 1, 
1978 and who is not reinstated shall continue for a period of 
two years after which the right to reinstatement shall terminate.
The unrequested leave of absence of a teacher who is placed on 
unrequested leave of absence on or after January 1, 1978 and who 
is not reinstated shall continue for a period of five years, 
after which the right to reinstatement shall terminate; provided 
the teacher's right to reinstatement shall also terminate if he 
or she fails to file with the board by April 1 of any year a 
written statement requesting reinstatement; 
    (i) (j) The same provisions applicable to terminations of 
probationary or continuing contracts in subdivisions 3 and 4 
shall apply to placement on unrequested leave of absence; 
    (j) (k) Nothing in this subdivision shall be construed to 
impair the rights of teachers placed on unrequested leave of 
absence to receive unemployment compensation if otherwise 
eligible. 
    Sec. 32.  Minnesota Statutes 1982, section 125.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WORDS, TERMS, AND PHRASES.] Unless the 
language or context clearly indicates that a different meaning 
is intended, the following words, terms, and phrases, for the 
purposes of the following subdivisions in this section shall be 
defined as follows: 
    (a) [TEACHERS.] The term "teacher" includes every person 
regularly employed, as a principal, or to give instruction in a 
classroom, or to superintend or supervise classroom instruction, 
or as placement teacher and visiting teacher.  Persons regularly 
employed as counselors and school librarians shall be covered by 
these sections as teachers if licensed as teachers or as school 
librarians.  
    (b) [SCHOOL BOARD.] The term "school board" includes a 
majority in membership of any and all boards or official bodies 
having the care, management, or control over public schools. 
    (c) [DEMOTE.] The word "demote" means to reduce in rank or 
to transfer to a lower branch of the service or to a position 
carrying a lower salary or compensation. 
    (d) [NONPROVISIONAL LICENSE.] For purposes of this section, 
"nonprovisional license" shall mean an entrance, continuing, or 
life license.  
    Sec. 33.  Minnesota Statutes 1982, section 125.17, 
subdivision 11, is amended to read: 
    Subd. 11.  [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 
OF PUPILS; PREFERENCE GIVEN.] (a) Any teacher whose services are 
terminated on account of discontinuance of position or lack of 
pupils shall receive first consideration for other positions in 
the district for which she that teacher is qualified.  In the 
event it becomes necessary to discontinue one or more positions, 
in making such discontinuance, teachers shall be discontinued in 
any department in the inverse order in which they were employed. 
    (b) Notwithstanding the provisions of clause (a), no 
teacher shall be entitled to exercise any seniority when that 
exercise results in that teacher being retained by the district 
in a field for which the teacher holds only a provisional 
license, as defined by the board of teaching, unless that 
exercise of seniority results in the termination of services, on 
account of discontinuance of position or lack of pupils, of 
another teacher who also holds a provisional license in the same 
field.  The provisions of this clause shall not apply to 
vocational education licenses.  
    (c) Notwithstanding the provisions of clause (a), no 
teacher shall be reinstated to a position in a field in which 
the teacher holds only a provisional license, other than a 
vocational education license, while another teacher who holds a 
nonprovisional license in the same field is available for 
reinstatement.  
    Sec. 34.  Minnesota Statutes 1982, section 275.125, 
subdivision 2d, is amended to read: 
    Subd. 2d.  [REFERENDUM LEVY.] (1) The levy authorized by 
subdivision 2a may be increased in any amount which is approved 
by the voters of the district at a referendum called for the 
purpose.  Such a 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 
shall be held on a date set by the school board.  Only one such 
election two elections may be held to approve a levy increase 
which will commence in a specific school year.  However, more 
than one referendum may be held to approve a levy increase to 
commence in the 1983-1984 school year.  The question on the 
ballot shall state the maximum amount of the increased levy in 
mills, the amount that will be raised by that millage in the 
first year it is to be levied, and that the millage shall be 
used to finance school operations.  The question ballot may 
designate a specific number of years 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 proposed by (petition to) 
the board of ........., School District No. .., be approved?"  
    If approved, the amount provided by the approved millage 
applied to each year's taxable valuation 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. 
    (2) A referendum on the question of revoking or reducing 
the increased levy amount authorized pursuant to clause (1) of 
this subdivision 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 approved by the voters 
of the district pursuant to clause (1) of this subdivision must 
be made at least once before it is subject to a referendum on 
its revocation or reduction for subsequent years.  Only one such 
revocation or reduction election may be held to revoke or reduce 
a levy for any specific year and for years thereafter. 
     (3) A petition authorized by clause (1) shall be effective 
if signed by a number of qualified voters in excess of 15 
percent, or ten percent if the school board election is held in 
conjunction with a general election, of the average number of 
voters at the two most recent district wide school elections.  A 
referendum invoked by petition shall be held within three months 
of submission of the petition to the school board. 
     (4) A petition authorized by clause (2) shall be effective 
if signed by a number of qualified voters in excess of five 
percent of the residents of the school district as determined by 
the most recent census.  A revocation or reduction referendum 
invoked by petition shall be held within three months of 
submission of the petition to the school board.  
     (5) Notwithstanding any law to the contrary, the approval 
of 50 percent plus one of those voting on the question is 
required to pass a referendum. 
     (6) Within 30 days after the district holds a referendum 
pursuant to this clause, the district shall notify the 
commissioner of education of the results of the referendum. 
    Sec. 35.  Minnesota Statutes 1982, section 136A.02, 
subdivision 1, is amended to read: 
    Subdivision 1.  The higher education coordinating board 
shall consist of eight citizen members, one from each 
congressional district, to be appointed by the governor with the 
advice and consent of the senate, and three citizen members also 
to be appointed by the governor by and with the advice and 
consent of the senate to represent the state at large.  All 
appointees to the board shall be selected for their knowledge of 
and interest in post secondary education and at least one shall 
be selected specifically for his knowledge of and interest in 
vocational education.  No member of the board shall be an 
employee of or receive compensation from a public or private 
post-secondary institution while serving on the board.  
    Sec. 36.  Minnesota Statutes 1982, 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 service 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 
school board determines that the excess amount 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 in excess 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 
specify a tax levy in a higher amount if necessary because of 
anticipated tax delinquency. 
    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 moneys actually on hand or if there 
is on hand any excess amount in the debt service fund, the 
recording officer may certify to the county auditor the fact and 
amount thereof and the auditor shall reduce by the amount so 
certified the amount otherwise to be included in the rolls next 
thereafter prepared. 
    Sec. 37.  Laws 1967, chapter 822, is amended by adding a 
section to read: 
    Sec. 12.  [OTHER PROGRAMS AND SERVICES.] 
    The board may also provide any other educational programs 
or other services requested by a participating district. 
However, these programs and services may not be post-secondary 
programs or services.  Academic offerings shall be provided only 
under the direction of properly licensed academic supervisory 
personnel.  
    Sec. 38.  Laws 1969, chapter 775, section 3, subdivision 2, 
as amended by Laws 1971, chapter 267, section 2, is amended to 
read:  
    Subd. 2.  It shall be the duty and the function of the 
intermediate district to furnish to every person eligible 
therefor residing in any part of such district and such other 
resident of the state as provided by law the following:  
    (a) Vocational school facilities and instruction in 
vocational-technical education; 
    (b) Facilities for and instruction in special education. 
    The board may also provide any other educational programs 
or other services requested by a participating district. 
However, these programs and services may not be post-secondary 
programs or services.  Academic offerings shall be provided only 
under the direction of properly licensed academic supervisory 
personnel.  
    Sec. 39.  Laws 1969, chapter 1060, is amended by adding a 
section to read: 
    Sec. 7.  [OTHER PROGRAMS AND SERVICES.] 
    The board may also provide any other educational programs 
or other services requested by a participating district. 
However, these programs and services may not be post-secondary 
programs or services.  Academic offerings shall be provided only 
under the direction of properly licensed academic supervisory 
personnel.  
    Sec. 40.  Laws 1974, chapter 237, section 1, is amended to 
read: 
    Section 1.  [INDEPENDENT SCHOOL DISTRICT NO. 709; 
TERMINATION OF TEACHING POSITIONS.] Independent School District 
No. 709, St. Louis county, and the exclusive representative of 
teachers as defined by Minnesota Statutes, 1973 Supplement, 
Section 179.63, Subdivision 13, may enter into a written 
agreement with respect to the termination of such teachers due 
to discontinuance of position or lack of pupils within the 
school district, which may include a method, system or scheme 
other than that provided by Minnesota Statutes, Section 125.17, 
Subdivision 11, or any act amendatory thereof.  The written 
agreement entered into pursuant to this section shall not 
include provisions allowing a teacher to exercise any seniority 
when that exercise results in the teacher being retained by the 
district in a field for which the teacher holds only a 
provisional license, as defined by the board of teaching, other 
than vocational education license, unless that exercise of 
seniority results in the termination of services, on account of 
discontinuance of position or lack of pupils, of another teacher 
who also holds a provisional license in the same field.  In 
addition, the written agreement entered into pursuant to this 
section shall not include provisions allowing a teacher to be 
reinstated to a position in a field in which the teacher holds 
only a provisional license, other than a vocational education 
license, while another teacher who holds a nonprovisional 
license in the same field is available for reinstatement.  
    Sec. 41.  Laws 1981, chapter 358, article VII, section 29, 
as amended by Laws 1981, Third Special Session chapter 1, 
article 1, section 10, and by Laws 1982, chapter 548, article 
IV, section 19, is amended to read: 
    Sec. 29.  [EXEMPTION FROM PUBLIC SALE.] 
    Notwithstanding Minnesota Statutes, Section 124.76, from 
June 1, 1981 July 1, 1983 until June 30, 1983 1985, the 
requirements as to public sale of tax and aid anticipation 
certificates of indebtedness shall not apply to certificates 
which mature no later than twelve months after their date of 
issue.  The interest rate on these certificates may be 
determined by direct negotiation. 
    Sec. 42.  [BEMIDJI REGIONAL INTERDISTRICT COUNCIL.] 
    The Bemidji regional interdistrict council, formed 
according to Minnesota Statutes, section 471.59, may acquire 
real property by receiving a gift of the owner's equity and 
either entering into a contract for deed or assuming the 
obligations of the mortgage existing on the property.  The real 
property shall be used by the council for educational programs 
and other related services.  Each district which is a member of 
the council shall pay its pro rata share of the mortgage or 
contract for deed payments from its capital expenditure fund.  
    Sec. 43.  [DATE OF CONSOLIDATION.] 
    Notwithstanding Minnesota Statutes, section 122.23, 
subdivision 13, or any other law to the contrary, the effective 
date of a consolidation of Independent School District No. 694, 
Buhl, with one or more school districts may be a date in 1984, 
as agreed upon by the school boards of the affected districts.  
    Sec. 44.  [BOARD OF CONSOLIDATED DISTRICT.] 
    Independent School District No. 694, Buhl, and one or more 
districts with which it consolidates according to Minnesota 
Statutes, section 122.23, and any other applicable provisions of 
law, may agree to any of the following:  
    (a) A school board of not more than seven members, (b) 
election districts of the size and with the population desired 
by the consolidating districts, and (c) election of school board 
members in any manner agreed upon, such as at large from a 
previously existing district or from the newly consolidated 
district, some members at large, some members from election 
districts or from previously existing districts.  However, at 
least six years after the first election of the consolidated 
district board, the board shall comply with the general 
provisions of law governing election of school board members. To 
the extent the provisions of Minnesota Statutes, section 122.23, 
or any other applicable law are inconsistent with this section, 
the provisions of this section shall apply.  
    Sec. 45.  [PILOT PROJECTS USING MICROCOMPUTERS.] 
    The department of education shall pilot test 
microcomputer-based financial reporting systems in up to eight 
school districts during the 1983-1984 school year.  The 
alternative reporting system must comply with Minnesota 
Statutes, sections 121.90 to 121.917.  
    The school districts selected as pilot sites shall operate 
parallel reporting systems until such time that the department 
certifies that the alternative system meets the reporting 
requirements.  The systems to be tested shall include one 
developed by the Minnesota educational computing consortium and 
at least one other available system recommended for testing by 
the ESV computer council, in consultation with the department. 
The alternative reporting systems operated by school districts 
selected as pilot sites shall be exempt from the requirements in 
Minnesota Statutes, section 121.936, subdivision 1, clause 
(b)(2), for the 1983-1984 school year.  
    The department shall evaluate the pilot systems.  The 
evaluation shall include recommendations on the feasibility and 
efficiency of reporting directly to the department, reporting to 
the department through the regional management information 
centers, or by other methods.  The ESV computer council shall 
review the evaluation of the pilot systems and report its 
findings to the house education and appropriations committees 
and senate education and finance committees by February 15, 
1984.  The cost of the evaluation shall be paid by the 
department of education.  
    Sec. 46.  [TIME PERIOD EXTENDED.] 
    Notwithstanding the provisions of Minnesota Statutes 1982, 
section 125.185, and 5 MCAR S 3.002, the board of teaching shall 
extend the time period to apply for a life license from July 1, 
1982 to January 1, 1984.  
    Sec. 47.  [NONRESIDENT PUPIL; INDEPENDENT SCHOOL DISTRICT 
NO. 181.] 
    Subdivision 1.  Any pupil who, as of June 30, 1983, has 
continuously been enrolled for a period of two or more 
consecutive school years in Independent School District No. 181 
without a tuition agreement pursuant to section 123.39, 
subdivision 5, or 124.18, subdivision 2, and was not a resident 
of that district, may continue in enrollment in that district as 
long as the pupil resides in a dwelling on the same property 
upon which the pupil resided on May 1, 1983.  Independent School 
District No. 181 shall be considered the pupil's district of 
residence.  
    Subd. 2.  Subdivision 1 shall also apply to any brother or 
sister of a qualified pupil who is related to that pupil by 
blood, adoption or marriage and to any foster child of that 
pupil's parents, as long as the sibling or foster child resides 
in a dwelling on the same property upon which the qualified 
pupil resided on May 1, 1983.  
    Subd. 3.  The provisions of subdivisions 1 and 2 shall be 
effective without local approval, according to Minnesota 
Statutes, section 645.023, subdivision 1, clause (a).  
    Sec. 48.  [CENTRAL MINNESOTA EDUCATIONAL RESEARCH AND 
DEVELOPMENT COUNCIL.] 
    The central Minnesota educational research and development 
council, an entity formed by member school districts pursuant to 
Minnesota Statutes, section 471.59, is authorized pursuant to 
resolution to issue bonds, notes, or other obligations on behalf 
of its member school districts in order to provide funds to 
carry out its purposes.  The obligations so issued shall be 
payable solely from the revenues, earnings, and assets of the 
entity and not be a liability or debt of any of the member 
school districts.  
    The obligations issued pursuant to this section may be 
issued without an election.  However, if the obligations are 
issued for the acquisition or betterment of a building, an 
election shall be required.  The obligations issued pursuant to 
this section may be sold at public or private sale and shall be 
in the forms and amounts, bear interest and mature and be 
subject to optional or mandatory redemption as the joint board 
may determine.  This section shall not limit or restrict the 
ability of the member school districts to issue obligations or 
incur indebtedness pursuant to section 471.59 without regard to 
this section.  
    Sec. 49.  [INTERMEDIATE SCHOOL DISTRICT STUDY.] 
    On December 1, 1983, the commissioner of education shall 
report to the education committees of the legislature about 
funding levels for secondary vocational services and special 
education services offered by Intermediate School Districts Nos. 
916, 917, and 287.  The report shall include an analysis of the 
use of special levies by intermediate districts and the ability 
of intermediate school districts to provide programs, compared 
to the ability of nonmember districts or cooperative centers to 
provide programs.  
    The report shall include recommendations which would ensure 
equal opportunities for all districts to provide secondary 
vocational and special education services.  The report shall 
also include recommended procedures for defining operating fund 
and capital fund needs, clarifying accounting procedures, and 
establishing tuition rates at secondary vocational and special 
education cooperatives.  The report shall also include 
recommendations on whether school district cooperatives 
utilizing joint powers agreements should be able to 
lease-purchase real property and any statutory changes necessary 
to implement these recommendations.  
    Sec. 50.  [ADMISSION REQUIREMENTS.] 
    Subdivision 1.  [DEVELOPMENT OF PROPOSAL.] By November 15, 
1983 the board of regents of the University of Minnesota, the 
state university board, the community college board, and the 
state board for vocational education shall develop proposals for 
admission requirements for incoming freshmen.  Each proposal 
shall specify secondary curriculum requirements necessary for 
admission into institutions of that system.  The proposals may 
include such requirements as minimum grade point average and 
standardized test scores.  
    Subd. 2.  [REVIEW AND COMMENT.] The higher education 
coordinating board shall review and comment on the proposals 
developed according to subdivision 1.  
    Subd. 3.  [FACTORS.] In developing proposals, the boards 
shall consider such factors as freshman level of preparedness 
for post-secondary work, the distinct missions of each system, 
the effect of the proposals on students, and the short-term and 
long-term effect of the proposals on the quality of education at 
all levels.  
    Subd. 4.  [REPORT.] The higher education coordinating board 
shall report to the education committees of the legislature by 
January 1, 1984.  
    Sec. 51.  [EXEMPTION FROM APPLICATION.] 
    The provisions of sections 29 to 33 and 40 shall not apply 
to any final decisions relating to placing teachers, as defined 
in Minnesota Statutes 1982, section 125.12, subdivision 1, on 
unrequested leaves of absence or, in the case of cities of the 
first class, termination of services of teachers, as defined in 
Minnesota Statutes 1982, section 125.17, subdivision 1, on 
account of discontinuance of position or lack of pupils made by 
school boards prior to the effective date of this act.  The 
provisions of this act shall not apply to any school district 
that, on the effective date of this act, is governed by a 
contractual agreement which includes specific terms explicitly 
allowing the exercise of seniority rights by teachers holding 
provisional licenses, the results of which would be contrary to 
the provisions of this act, until the expiration of that 
contractual agreement.  All contractual agreements entered into 
after the effective date of this act shall be consistent with 
this act.  
    Sec. 52.  [REPEALER.] 
    Minnesota Statutes 1982, section 122.90, is repealed.  
    Sec. 53.  [APPROPRIATION; COMMISSION ON EDUCATION.] 
    There is appropriated $150,000 from the general fund to the 
legislative commission on public education.  The sum is 
available until June 30, 1985.  
    Sec. 54.  [EFFECTIVE DATE.] 
    Sections 1, 5, 15, 18, 19, 27, 28, and 34 are effective the 
day following final enactment. 

                               ARTICLE 8 

                 TECHNOLOGY AND EDUCATIONAL IMPROVEMENT 
    Section 1.  [121.601] [SUBJECT AREA INSERVICE TRAINING.] 
    Subdivision 1.  [ESTABLISHMENT.] The department of 
education shall establish a program for providing inservice 
training to school district staff.  During the first year, the 
program shall provide inservice training to elementary and 
secondary staff in mathematics, science, and social science. For 
each succeeding year of the program, the commissioner shall 
recommend to the legislature subject areas for which inservice 
training programs shall be provided.  Inservice training 
programs shall be designed to offer a broad spectrum of 
experiences, including activities which require active 
participant involvement rather than classroom lectures.  To the 
extent possible, the inservice training programs shall be 
integrated with the technology inservice training provided 
according to sections 14 and 15 of this article.  
    Subd. 2.  [PROPOSALS.] Grant proposals submitted by 
eligible applicants to the department shall include at least the 
following:  
    (a) a variety of staff education activities which are 
designed to assess and upgrade skills of those attending the 
training programs;  
    (b) provisions for addressing the requirements for 
licensure for those staff who currently are not licensed in the 
designated areas but who desire to be so licensed;  
    (c) a plan for staff who participate in the training 
program to return to their school districts and provide training 
programs or disseminate information on inservice programs to 
other staff in their districts and regions;  
    (d) a process for notifying staff in the state who teach in 
the designated subject areas and who are eligible for the 
program, a process for selecting staff to participate in the 
inservice training program, and a mechanism for evaluation to be 
provided to the state board upon completion of the program;  
    (e) an estimated budget for the program, which shall 
provide for tuition expenses, related expenses including meals 
and lodging, and a stipend for participants in the program; and 
    (f) other information that may be requested by the 
department.  
    Subd. 3.  [ELIGIBLE APPLICANTS.] The department may 
allocate money to public or nonpublic institutions of higher 
education, public or private nonprofit organizations, 
educational cooperative service units, or school districts for 
the purpose of providing inservice training according to this 
section.  When approving or disapproving grants, the department 
shall ensure geographic accessibility of the programs to 
teachers throughout the state and a balance of programs 
available in different subject areas.  
    Subd. 4.  [CONSULTATION.] When making grants for the 
inservice training programs according to this section, the 
department shall consult with elementary and secondary staff in 
the designated subject areas to ensure that proposals submitted 
incorporate recent research findings and address the retraining 
needs of staff in those subject areas.  
    Subd. 5.  [PRIVATE MONEY.] The commissioner of education 
may accept contributions from additional private or public 
sources to supplement state money provided by this section. 
These contributions shall be added to the total amount of 
available state money and shall be administered by the 
department in the same manner as state money.  
     Subd. 6.  [FEDERAL MONEY.] The commissioner of education 
shall apply for and accept all federal money available for 
inservice training programs in the designated subject areas.  
    Subd. 7.  [APPLICATION DATES.] Applications for inservice 
training programs to be conducted during a school year shall be 
submitted to the department by January 15 preceding the 
beginning of that school year.  The department shall approve or 
disapprove applications by the following March 1.  
    Sec. 2.  [121.608] [INSTRUCTIONAL EFFECTIVENESS PLAN.] 
    By January 1, 1984, the commissioner of education shall 
develop a comprehensive statewide plan for maintaining and 
improving instructional effectiveness in the schools.  The plan 
shall encourage implementation of school effectiveness 
strategies based on research findings in the area, develop 
inservice training models for school district staff, integrate 
developments in educational technology with classroom 
instruction models, and develop a mechanism for establishing a 
statewide network to coordinate and disseminate information on 
research in instructional 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.  
    Sec. 3.  [121.609] [INSTRUCTIONAL EFFECTIVENESS TRAINING.] 
    Subdivision 1.  [ADVISORY TASK FORCE; PROGRAM MODEL.] By 
January 1, 1984, the commissioner of education shall appoint an 
advisory task force to assist the department of education, in 
cooperation with the educational cooperative service units, in 
developing an implementation model for training school district 
staff in instructional effectiveness.  The training program 
model shall be based on established principles of instructional 
design and the essential elements of effective instruction as 
determined by educational research.  The training program model 
shall take into account the diverse needs of the school 
districts due to such factors as district size and location, and 
shall be structured to facilitate regional delivery of the 
training through the educational cooperative service units.  
    Subd. 2.  [PILOT TESTING OF TRAINING MODEL.] Between 
January 1, 1984, and January 1, 1985, the commissioner shall 
administer a pilot program of the instructional effectiveness 
training models which shall be implemented in at least 20 pilot 
sites throughout the state.  The advisory task force established 
in subdivision 1 of this section may recommend modifications in 
the training models as necessary.  
    Subd. 3.  [EVALUATION AND REPORT.] The commissioner shall 
pay an independent evaluator to conduct an evaluation of the 
effectiveness of this section.  The evaluator shall submit a 
report, including a sample survey of district personnel trained 
at the pilot sites, to the commissioner by January 1, 1985.  
    Sec. 4.  [121.612] [CITATION.] 
    Subdivision 1.  This section may be cited as the "Minnesota 
Academic Excellence Act."  
    Subd. 1a.  [CREATION OF FOUNDATION.] There is created the 
Minnesota Academic Excellence Foundation.  The purpose of the 
foundation shall be to promote academic excellence in Minnesota 
public schools through a public-private partnership.  The 
foundation shall be a nonprofit organization.  
    Subd. 2.  [BOARD OF DIRECTORS.] The board of directors of 
the foundation shall consist of the governor or the governor's 
designee; the chairpersons of the education committee and 
education finance division in the house of representatives and 
the chairpersons of the education committee and education 
subcommittee on education aids in the senate; a minority member 
of the house of representatives to be appointed by the house 
minority leader; a minority member of the senate, to be 
appointed by the senate minority leader; the commissioner of 
education; and 15 members to be appointed by the governor.  Of 
the 15 members appointed by the governor, six shall represent 
various education groups and nine shall represent various 
business groups.  The board of directors shall meet as soon as 
possible after the effective date of this section.  The 
commissioner of education shall serve as secretary for the board 
of directors and provide administrative support to the 
foundation.  
    Subd. 3.  [FOUNDATION PROGRAMS.] The foundation shall plan 
for programs which advance the concept of educational 
excellence.  These may include but are not limited to:  
    (a) recognition programs and awards for students 
demonstrating academic excellence;  
    (b) summer institute programs for students with special 
talents;  
    (c) recognition programs for teachers, administrators, and 
others who contribute to academic excellence;  
    (d) summer mentorship programs with business and industry 
for students with special career interests and high academic 
achievements;  
    (e) governor's awards ceremonies to promote academic 
competition; and 
    (f) consideration of the establishment of a Minnesota high 
school academic league.  
    To the extent possible, the foundation shall make these 
programs available to students in all parts of the state.  
    Subd. 4.  [PRIVATE FUNDING.] The foundation shall seek 
private resources to supplement the available public money. 
Individuals, businesses, and other organizations may contribute 
to the foundation in any manner specified by the board of 
directors.  All money received shall be administered by the 
board of directors.  
    Subd. 5.  [REPORT.] By February 1, 1984, and February 1, 
1985, the board of directors of the foundation shall report to 
the education committees of the legislature on the progress of 
its activities made pursuant to the provisions of this section.  
    Sec. 5.  Minnesota Statutes 1982, section 122.41, is 
amended to read: 
    122.41 [POLICY.] 
    It is hereby declared to be The policy of the state is to 
encourage the organization of school districts into such local 
units of administration as will to afford better educational 
opportunities for all pupils, make possible a more economical 
and efficient operation of the schools, and insure a 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 classified elementary and 
secondary schools, grades one through twelve, unless a district 
has made an agreement with another district or districts as 
provided in section 8 of this article or 122.541.  
    Sec. 6.  Minnesota Statutes 1982, section 122.43, is 
amended to read: 
    122.43 [DISSOLUTION OF DISTRICTS NOT A PART OF INDEPENDENT 
DISTRICTS.] 
    Subdivision 1.  If there be Any organized school district 
not a part of an independent school district maintaining 
classified elementary and secondary schools, grades one through 
twelve is dissolved, unless the district has made an agreement 
with another district or districts as provided in section 8 of 
this article or 122.541, such district shall hereby be dissolved.
    Subd. 2.  The board of each district so dissolved shall 
continue to maintain school therein until all its territory 
thereof has been attached to a proper district not later than 
July 1, but.  Such boards shall have power and authority only to 
make such contracts and to do such things as are necessary to 
maintain schools properly the schools for the period they may be 
in session prior to the attachment.  
    Sec. 7.  Minnesota Statutes 1982, section 122.44, is 
amended to read: 
    122.44 [PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS; 
PROCEDURE.] 
    Subdivision 1.  Upon notice and hearing, as provided in 
section 122.22 for the attachment of dissolved districts, all 
territory of school districts dissolved by sections 122.41 to 
122.52 and all area of the state not in a district maintaining 
classified elementary and secondary schools shall be attached by 
order of the county board to organized districts maintaining 
classified elementary and secondary schools, grades one through 
twelve, unless a district has made an agreement with another 
district or districts as provided in section 8 of this article 
or 122.541. 
    Sec. 8.  [122.535] [AGREEMENTS FOR SECONDARY EDUCATION.] 
    Subdivision 1.  [APPLICABILITY.] The provisions of this 
section shall apply to a district with fewer than 375 pupils 
enrolled in grades 7 through 12.  
    Subd. 2.  [AGREEMENT.] The school board may enter into one 
or more agreements providing for instruction of its secondary 
pupils in one or more districts.  The agreement shall be 
effective on July 1 and shall be for a specified or indefinite 
number of years.  The agreement shall set forth the obligations 
of transportation, the tuition to be paid to the providing 
district, and all additional charges and fees to be paid to the 
providing district.  The amount of tuition shall not be subject 
to the provisions of section 124.18, subdivision 2.  The 
agreement may provide for negotiation of a plan for the 
assignment or employment in a providing district as an exchange 
teacher according to section 125.13, or placement on unrequested 
leave of absence of teachers whose positions are discontinued as 
a result of the agreement.  "Teacher" has the meaning given it 
in section 125.12, subdivision 1.  
    Subd. 3.  [INFORMATIONAL MEETING.] Before entering into 
agreements permitted by subdivision 2 of this section, the 
school board shall hold a public hearing.  The board shall 
publish notice of the hearing in the newspaper with the largest 
circulation in the district.  If the board proposes to enter 
into agreements with two or more districts, the board may 
conduct separate or consolidated hearings.  
    Subd. 4.  [REVIEW AND COMMENT.] After the hearing required 
by subdivision 3 of this section and before entering into an 
agreement, the board shall submit the agreement to the 
commissioner of education for review and comment.  
    Subd. 5.  [AID PAYMENTS.] A district entering into an 
agreement permitted in subdivision 2 of this section shall 
continue to count its resident pupils who are educated in other 
districts as resident pupils in the calculation of pupil units 
for the purposes of state aids, levy limitations, and any other 
purpose.  A district may continue to provide transportation and 
collect transportation aid for its resident pupils.  For 
purposes of aid calculations, the commissioner of education may 
adjust the cost per eligible pupil transported to reflect 
changes in cost resulting from the agreement, if any.  
    Sec. 9.  Minnesota Statutes 1982, section 123.741, 
subdivision 1, is amended to read: 
    Subdivision 1.  The school board of each school district in 
the state shall develop and adopt a written educational policy 
which establishes educational goals for the district, a process 
for achieving these goals, and procedures for evaluating and 
reporting progress toward the goals.  These goals shall include 
meeting the curriculum requirements adopted by the state board 
of education.  The school board shall review this policy each 
year and adopt revisions which it deems desirable.  School 
boards are encouraged to develop this school district policy and 
any revisions after consultation with the staff of each school 
building.  In formulating the policy, the school board of a 
district is encouraged to consider:  (a) the number of dropouts 
of school age in the district and the reasons for the dropouts; 
(b) existing programs within the district for dropouts and 
potential dropouts and (c) program needs of dropouts and 
potential dropouts. 
    Sec. 10.  [129B.31] [CITATION.] 
    Sections 12 to 20 of this article may be cited as the 
"Minnesota Education Technology Act."  
    Sec. 11.  [ADVISORY COMMITTEE ON TECHNOLOGY IN EDUCATION.] 
    By July 1, 1983, a 15 member advisory committee on 
technology in education shall be appointed by the governor to 
assist in the implementation of sections 13 to 20 of this 
article.  Representation on the advisory committee shall include 
public school teachers and administrators, school boards, 
parents, department of education, Minnesota educational 
computing consortium, at least one regional management 
information center, council on quality education, higher 
education, and at least two members from high technology 
business and industry.  Advisory committee members shall be 
knowledgeable about the use of technology in elementary and 
secondary education.  The advisory committee shall terminate on 
June 30, 1985.  
    Sec. 12.  [129B.32] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] For the purpose of 
sections 13 to 20 of this article, the following terms have the 
meanings given them, unless clearly provided otherwise.  
    Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] "Average daily 
membership" has the meaning given it in section 124.17, 
subdivision 2.  
    Subd. 3.  [COURSEWARE PACKAGE.] "Courseware package" means 
integrated videotape and videodisk, computer disk, and software 
and its supporting materials, such as workbooks and textbooks.  
    Subd. 4.  [STATE BOARD.] "State board" means state board of 
education.  
    Subd. 5.  [ADVISORY COMMITTEE.] "Advisory committee" means 
the advisory committee on technology in education established in 
section 11 of this article.  
    Subd. 6.  [TECHNOLOGY.] "Technology" includes, but is not 
limited to, computers, telecommunications, cable television, 
interactive video, film, low-power television, satellite 
communications, and microwave communications.  
    Sec. 13.  [129B.33] [TECHNOLOGY UTILIZATION PLANS.] 
    Subdivision 1.  [DEVELOPMENT OF PLAN.] Each school district 
is encouraged to develop and adopt as part of its educational 
policy a written technology utilization plan, in consultation 
with the curriculum advisory committee for planning, evaluation, 
and reporting appointed pursuant to section 123.741, subdivision 
3.  The district is encouraged to review the plan each year and 
adopt revisions as desired.  
    Subd. 2.  [ELIGIBILITY FOR AID.] Each school district which 
intends to prepare and submit a technology utilization plan that 
complies with this section is eligible to receive state aid. 
Application forms shall be provided to districts by the 
department of education by August 31, 1983.  
    Subd. 3.  [AID FOR PLANNING.] A school district which 
applies for aid to develop a technology utilization plan shall 
receive $0.75 times average daily membership for the 1982-1983 
school year.  No district which applied for aid shall receive 
less than $500.  
    Subd. 4.  [PAYMENT OF AID; SUBMISSION OF PLANS.] The 
department of education shall pay aid to a district within 30 
days of receiving the district's application.  Districts which 
receive aid shall submit technology utilization plans by January 
31, 1984, or within 90 days of receiving aid, whichever is later.
    Subd. 5.  [CONTENTS OF PLAN.] The plan shall describe:  
    (a) how technology will be used to provide educational 
opportunities for people of all ages residing in the district, 
affirmatively addressing the needs of special populations, 
including females, minorities, and the disabled;  
    (b) goals for implementing the use of technology in the 
district, including instruction and management uses;  
    (c) means to achieve these goals, including proposed 
teacher inservice training;  
    (d) procedures for integrating the use of technology into 
the district's community education program; and 
    (e) procedures to evaluate and report progress toward the 
goals.  
    Subd. 6.  [MODEL PLANS.] By August 31, 1983, the department 
of education, in consultation with the advisory committee, 
educational cooperative service units, Minnesota educational 
computing consortium, and appropriate regional management 
information centers formed according to section 121.935, 
subdivision 1, shall develop model plans and criteria for 
evaluating district plans.  The department may employ 
consultants and specialists to assist in this effort.  The model 
plans and criteria shall be distributed to districts, and the 
department shall assist in developing district plans, upon 
request.  
    Subd. 7.  [APPROVAL OF PLAN.] The state board shall approve 
or disapprove a plan within 60 days of receiving the plan 
submitted by a district.  The plan may be modified by the 
district, in consultation with the department, at any time prior 
to state board action on the plan.  A plan that is disapproved 
may be revised and resubmitted for approval.  
    Sec. 14.  [129B.34] [INSERVICE TRAINING FOR USE OF 
TECHNOLOGY.] 
    Subdivision 1.  [ELIGIBILITY FOR AID.] Each school district 
with an approved technology utilization plan, according to 
section 13 of this article, may apply for state aid to provide 
inservice training for elementary and secondary public school 
staff on the use of technology in education.  The inservice 
training should not be limited to formal classroom 
presentations.  School districts are encouraged to cooperate in 
providing inservice training for staff members.  
    Subd. 2.  [APPLICATIONS.] Applications containing specific 
inservice training proposals for a district or combination of 
districts shall be submitted by December 1, 1984, in the form 
and manner prescribed by the department of education.  The 
department shall approve or disapprove applications within 60 
days of receipt.  
    Subd. 3.  [AMOUNT OF AID.] A district or combination of 
districts whose application is approved shall receive $1 times 
average daily membership for the 1982-1983 school year.  Aid 
shall be paid within 30 days of approval.  
    Subd. 4.  [STATEWIDE INSERVICE TRAINING.] By June 30, 1985, 
the department shall provide for supplemental regional or 
statewide inservice training for district staff on the use of 
technology in education.  The department may employ consultants 
or specialists for this purpose, but shall ensure that these 
training activities do not duplicate or conflict with services 
provided by other governmental agencies or organizations.  
    Sec. 15.  [129B.35] [REGIONAL COORDINATORS.] 
    The Minnesota educational computing consortium shall 
provide regional instructional computing coordinators with 
expertise in the use of technology in education.  The Minnesota 
educational computing consortium and the department of education 
shall agree on the services to be provided by the regional 
coordinators.  Among other responsibilities, the regional 
coordinators shall serve as onsite consultants to districts 
participating in technology utilization planning and inservice 
training.  
    Sec. 16.  [129B.36] [TECHNOLOGY DEMONSTRATION SITES.] 
    Subdivision 1.  [SITE DESIGNATION.] By January 15, 1984, 
the state board shall designate from eight to ten districts as 
technology demonstration sites and award each district a grant 
for use during the 1983-1984 and 1984-1985 school years.  
    Subd. 2.  [CRITERIA FOR SELECTION.] In consultation with 
the department of education, appropriate regional management 
information centers, and the Minnesota educational computing 
consortium, the advisory committee shall develop selection 
criteria for review by the state board.  The state board shall 
establish selection criteria to be distributed to districts by 
October 1, 1983.  Criteria shall include at least the following: 
    (a) exemplary program of technology utilization existing in 
the district;  
    (b) evidence of willingness by district staff and the 
community to incorporate technology fully into the curriculum to 
demonstrate new instructional methods;  
    (c) willingness to match the grant awarded to the district; 
and 
    (d) willingness to share educational experiences with other 
interested parties.  
   For two of the sites, criteria may include participation of 
Minnesota high technology business or industry.  Clause (a) may 
be excluded as a factor in selection of the two sites, one of 
which may be a rural district.  
    Subd. 3.  [SITES THROUGHOUT THE STATE.] To the extent 
possible, the selected sites shall be geographically well 
distributed with representation from urban, suburban, and rural 
areas.  
    Subd. 4.  [GRANT AWARDS.] Applications for grants shall be 
submitted to the state board by December 1, 1983 in the form and 
manner prescribed by the department.  Grants shall be awarded by 
January 15, 1984.  
    Subd. 5.  [RECIPIENT DUTIES AND USE OF MONEY.] A district 
selected for a grant shall work cooperatively with the advisory 
committee, department of education, Minnesota educational 
computing consortium, higher education institutions in the area, 
and business and industry, as appropriate.  A district selected 
for a grant shall have a technology utilization plan according 
to section 13 of this article.  The district shall conduct at 
least one workshop each school year of the grant to demonstrate 
to other districts and interested parties its use of technology 
in education.  Grant money may be used for equipment, 
consultants, curriculum development, and teacher training.  
    Subd. 6.  [PRIVATE FUNDING.] The advisory committee shall 
seek funding and in-kind contributions from private sources to 
supplement state money for the purpose of awarding grants. 
Private contributions may be made directly to the technology 
demonstration sites.  
    Subd. 7.  [EVALUATION OF SITES.] The state board shall 
evaluate the technology demonstration sites.  It may contract 
with independent evaluators for this purpose.  
    Sec. 17.  [129B.37] [COURSEWARE PACKAGE EVALUATION.] 
    Subdivision 1.  [LIST.] By January 1, 1984, the department 
of education shall compile, publish, and distribute to districts 
a list of high quality courseware packages for use in public 
elementary and secondary schools.  Every six months thereafter, 
the department shall supplement the list with recently evaluated 
materials.  
    Subd. 2.  [PROCUREMENT.] The department shall obtain 
courseware packages for evaluation by notifying publishers and 
inviting them to submit their materials.  The department may 
provide for evaluation of courseware packages that have not been 
submitted, if districts express strong interest in using the 
courseware packages.  
    Subd. 3.  [CRITERIA.] The state board shall develop and 
adopt criteria and procedures for evaluation of courseware 
packages, in consultation with the department, advisory 
committee, appropriate regional management information centers, 
and the Minnesota educational computer consortium.  The 
procedures developed shall contain a provision for resubmission 
of a courseware package.  Chapter 14 shall not apply to the 
criteria and procedures.  
    Subd. 4.  [CONSULTANTS.] The department may employ 
consultants to evaluate courseware packages and pay them fees 
based on the size and complexity of the courseware package 
involved.  The evaluators shall certify to the state board that 
they have no financial interest in the product being evaluated 
or any similar or competing product.  
    Subd. 5.  [EVALUATION TEAM.] The evaluation team for each 
courseware package shall include at least five persons, 
including three practicing teachers, from appropriate grade 
level or content areas, who will field test the courseware 
packages in their classrooms; one microcomputer professional 
knowledgeable in software and documentation techniques; and one 
curriculum content expert from the department.  Each evaluation 
team member shall use the criteria and procedures adopted by the 
state board and submit a written report to the department upon 
completion.  
    Subd. 6.  [HIGH QUALITY.] Based on the reports submitted by 
evaluation team members and the criteria and procedures adopted 
by the state board, the department shall determine whether the 
courseware package qualifies as high quality.  The results shall 
be recorded in a standardized format and be available at the 
department for review by the courseware package producer and 
other interested persons.  
    Subd. 7.  [DISPOSITION.] The department shall maintain a 
collection of the courseware packages evaluated as high quality. 
These materials shall be available to the public for review.  
    Sec. 18.  [129B.38] [SUBSIDY FOR PURCHASE OF COURSEWARE 
PACKAGES.] 
    Subdivision 1.  [AID AMOUNT.] A district that purchases or 
leases courseware packages that qualify as high quality 
according to section 17 of this article shall receive state aid. 
The aid shall be equal to the lesser of:  
    (a) $1.60 times average daily membership for the 1982-1983 
school year; or 
    (b) 25 percent of the actual expenditures of the district 
for purchase or lease of the courseware packages between January 
1, 1984, and May 31, 1985.  
    Subd. 2.  [AID PAYMENT.] Appplications for aid shall be 
submitted in the form and manner prescribed by the department. 
Payment of aid shall be made by July 31, 1984, for applications 
received by June 30, 1984.  Payment of aid shall be made by June 
30, 1985, for applications received between July 1, 1984, and 
May 31, 1985.  
    Sec. 19.  [129B.39] [PURCHASE OF COURSEWARE PACKAGE 
DUPLICATION RIGHTS.] 
    Rights to duplication of courseware packages may be 
purchased, and volume purchase agreements may be established by 
the department of education, if the department determines that 
the courseware packages qualify as high quality according to 
section 17 of this article, and if the courseware packages are 
available to the state at a lower cost than if purchased by 
school districts individually.  The department shall make the 
courseware packages available to the Minnesota educational 
computing consortium for distribution to districts.  The 
materials shall be available to districts without cost except 
for nominal costs of reproduction and distribution.  
    Sec. 20.  [129B.40] [COURSEWARE PACKAGE DEVELOPMENT.] 
    Subdivision 1.  [NEW COURSEWARE PACKAGES.] The Minnesota 
educational computing consortium, in consultation with the 
department of education, is authorized to develop and design 
courseware packages which will meet the needs of schools 
districts and which otherwise are unavailable or too expensive 
for individual districts or the state to purchase.  The 
Minnesota educational computing consortium may:  
    (a) contract with school districts, private entrepreneurs, 
and other public or private agencies for the development of a 
specified courseware package;  
    (b) assist entrepreneurs to develop their own ideas for 
courseware packages that could be used in school districts, by 
providing funds for that purpose;  
    (c) secure copyrights for those materials in which it has a 
whole or part interest;  
    (d) sell developed courseware packages at cost to school 
districts in Minnesota and at commercial rates elsewhere; and 
    (e) sell or contract for the marketing of courseware 
packages.  
    The department of education shall evaluate whether the 
courseware packages qualify as high quality according to the 
criteria and procedures established in section 17 of this 
article.  
    Courseware packages developed according to this subdivision 
shall become the property of the Minnesota educational computing 
consortium.  Revenue from the sale of these courseware packages 
shall be used to develop additional courseware packages 
according to this section.  
    Subd. 2.  [DISTRIBUTION.] The Minnesota educational 
computing consortium may sell courseware packages to Minnesota 
school districts at cost and may sell to school districts in 
other states and to the general public at commercial rates. Each 
contract with a developer who shares in the profits of 
distribution shall include a provision requiring sale of the 
courseware packages at cost to Minnesota school districts.  
    Sec. 21.  [INCREASE IN COMPLEMENT.] 
    To implement the provisions of sections 13 to 20 of this 
article, the department of education may increase its complement 
by two positions:  one education specialist II and one clerical 
support position.  The positions are in the classified service 
of the state civil service.  
    Sec. 22.  [REPORT ON NEED FOR CURRICULUM CHANGES.] 
    By October 1, 1983, the commissioner of education shall 
develop and submit a report to the education committees of the 
legislature on the need for amending current rules governing 
curriculum requirements in the elementary and secondary public 
schools.  In developing the recommendations, the commissioner 
shall consider the extent to which the proposed curriculum 
requirements shall adequately prepare the students for entering 
post-secondary institutions.  The report shall include at least 
the following:  
    (1) preliminary information on the extent to which school 
districts are in compliance with the current curriculum 
requirements established in state board rules;  
    (2) a preliminary draft of proposed rules which would 
increase the curriculum requirements in elementary and secondary 
schools;  
    (3) recommendations for changes in the laws which impose 
penalties for noncompliance with state board of education rules; 
    (4) development of a statewide monitoring system to ensure 
compliance with curriculum requirements;  
    (5) assessment of the feasibility of establishing learning 
requirements for elementary and secondary students to complete 
outside the classroom; and 
    (6) recommendations for changes in high school graduation 
requirements and achievement standards.  
    Sec. 23.  [RULEMAKING ON CURRICULUM.] 
    By September 1, 1984, the state board of education shall 
adopt rules pursuant to chapter 14, establishing elementary and 
secondary curriculum requirements which will ensure that a 
minimum comprehensive educational program is available to all 
public school students in the state.  The rules adopted by the 
state board shall be effective beginning in the 1985-1986 school 
year.  
    Sec. 24.  [REPORT TO LEGISLATURE.] 
     The department of education shall evaluate the concept of 
extending the school year.  The department shall consider at 
least the following:  educational benefits, methods to extend 
the school year, fiscal implications, and other relevant 
factors.  By November 1, 1983, the department shall report its 
findings and recommendations to the education committees of the 
legislature.  
    Sec. 25.  [REPORTS TO THE LEGISLATURE.] 
    By February 1, 1984, the department of education shall 
report to the education committees of the legislature on the 
progress of implementing the programs in sections 1 to 3, and 13 
to 20 of this article.  
    By February 1, 1985, the department of education shall 
report to the education committees of the legislature on 
preliminary evaluations of the programs and participants in 
sections 1 to 3, and 13 to 20 of this article.  
    Sec. 26.  [APPROPRIATIONS; DEPARTMENT OF EDUCATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section.  The sums are available until June 30, 1985.  
    Subd. 2.  [SUBJECT AREA INSERVICE TRAINING.] The sum of 
$500,000 is appropriated for the purposes of section 1 of this 
article.  The department may use up to $50,000 of this 
appropriation for administration and evaluation of the program.  
    Subd. 3.  [INSTRUCTIONAL EFFECTIVENESS PLAN.] The sum of 
$50,000 is appropriated for the purposes of section 2 of this 
article.  
    Subd. 4.  [INSTRUCTIONAL EFFECTIVENESS TRAINING.] The sum 
of $300,000 is appropriated for the purposes of section 3 of 
this article.  No more than $15,000 shall be used for the 
evaluation required in section 3, subdivision 3 of this article. 
    Subd. 5.  [ACADEMIC EXCELLENCE FOUNDATION.] The sum of 
$150,000 is appropriated for the purpose of section 4 of this 
article.  No more than $50,000 of this amount shall be used for 
administrative costs.  The foundation shall add to this 
appropriation any additional money raised from other sources.  
    Subd. 6.  [TECHNOLOGY UTILIZATION PLANS.] The sum of 
$650,000 is appropriated for the purposes of section 13 of this 
article.  
    The department may use up to $63,000 of the appropriation 
for costs of developing model plans and criteria, assisting 
districts to develop plans, and evaluating the program.  
    Subd. 7.  [INSERVICE TRAINING.] The sum of $936,000 is 
appropriated for the purposes of section 14 of this article.  
    The department may use up to $220,000 of the appropriation 
for supplemental regional or statewide inservice training.  
    Subd. 8.  [TECHNOLOGY DEMONSTRATION SITES.] The sum of 
$1,600,000 is appropriated for the purposes of section 16 of 
this article.  The department may use up to $15,000 of the 
appropriation for costs of administering the program and up to 
$40,000 for evaluating the program.  The department shall 
allocate $300,000 for the costs of inservice training conducted 
at the demonstration sites, including partial substitute pay and 
travel expenses for visitation to the sites from districts 
within the state.  
    Subd. 9.  [COURSEWARE PACKAGE EVALUATION.] The sum of 
$200,000 is appropriated for the purposes of section 17 of this 
article.  The department may use up to $15,000 of the 
appropriation for costs of administering the program.  
    Subd. 10.  [SUBSIDY FOR COURSEWARE PURCHASE.] The sum of 
$1,154,000 is appropriated for the purposes of section 16 of 
this article.  
    Subd. 11.  [PURCHASE OF COURSEWARE DUPLICATION RIGHTS.] The 
sum of $225,000 is appropriated for the purposes of section 19 
of this article.  
    Subd. 12.  [INCREASE IN COMPLEMENT.] The sum of $125,000 is 
appropriated for the purposes of section 21 of this article.  
    Sec. 27.  [APPROPRIATIONS; MINNESOTA EDUCATIONAL COMPUTING 
CONSORTIUM.] 
    Subdivision 1.  There is appropriated from the general fund 
to the Minnesota educational computing consortium the amounts 
indicated in this section for the fiscal years ending June 30 in 
the year designated.  Any unexpended balance from the 
appropriation for fiscal year 1984 shall not cancel but shall be 
available for fiscal year 1985.  
    Subd. 2.  [REGIONAL COORDINATORS.] For regional 
instructional computing coordinators as provided in section 15 
of this article, there is appropriated:  
     $280,000.....1984,
     $280,000.....1985.
    Subd. 3.  [COURSEWARE PACKAGE DEVELOPMENT.] The sum of 
$250,000 is appropriated for fiscal year 1984 for the purposes 
of section 20 of this article.  The Minnesota educational 
computing consortium shall supplement this appropriation from 
other sources in its budget for the purpose of developing 
courseware packages.  
    Sec. 28.  [EFFECTIVE DATE.] 
    Sections 1 to 4, and 10 to 20 of this article are effective 
the day following final enactment. 

                               ARTICLE 9

                      COUNCIL ON QUALITY EDUCATION
    Section 1.  Minnesota Statutes 1982, section 121.503, is 
amended to read: 
    121.503 [PROGRAM SELECTION.] 
    Subdivision 1.  [AUTHORIZATION.] A school district or group 
of districts that wish wishes to receive moneys a grant for 
improved learning programs may apply to the state board of 
education council on quality education for approval.  Programs 
may be approved for one portion of a school population, an 
entire school attendance area, one or several attendance areas, 
an entire school district, or one or a group of school districts.
    Subd. 2.  [APPLICATIONS.] The state board council on 
quality education shall prescribe the form and manner of annual 
application for the program.  The council on quality education 
may review and advise the state board on applications made for 
improved learning programs.  Beginning in 1982, and each year 
thereafter, applications shall be submitted to the state board 
by January 15.  If a district wishes to receive aid for the 
principal-teacher, career teacher or counselor-teacher component 
of an improved learning program, an application for state aid 
must be submitted to the state board by January 15.  The 
application may include estimates of salaries and fringe 
benefits for the next school year and for the additional time 
beyond the regular contract period for staff to be employed 
shall be itemized on the application for aid.  The board shall 
notify all applicants of aid approved or denied by March 15 of 
each year.  The board shall approve or deny applications in the 
order that they are received.  The council shall require that 
each program be evaluated and it may contract for additional 
evaluation.  
    Subd. 2a.  [DECLINING GRANT AMOUNTS.] An improved learning 
program may receive grants for not more than three years.  The 
grant amount for the second year of a program shall not exceed 
75 percent of the grant amount for the first year.  The grant 
amount for the third year of a program shall not exceed 50 
percent of the grant amount for the first year.  The council 
shall notify each recipient that no grant will be awarded after 
the third year and that the recipient is expected to continue 
successful programs without grants.  
    Subd. 3.  [WAIVERS RULES AND RIGHTS.] On recommendation of 
the council of quality education, the state board of education 
may waive school district compliance with its rules which would 
prevent implementation of an improved learning program which 
receives approval from the state board.  However, individuals 
participating Participation in the an improved learning program 
as a principal-teacher, counselor-teacher, or career teacher 
program shall maintain their not affect seniority date in the 
district and all or rights under the applicable collective 
bargaining agreement.  
    Subd. 4.  [ADDITIONAL FUNDING.] A school district providing 
an improved learning program may receive funds for the program 
from private sources and governmental agencies, including state 
or federal funds.  
    Subd. 5.  [REPORT.] The department council on quality 
education shall submit a report to the legislature by February 
1, 1983, and by February 1 each year thereafter.  This report 
shall include the number and description of programs approved, 
implementation status of programs approved, waivers granted, and 
evaluation of programs approved.  
    Sec. 2.  Minnesota Statutes 1982, section 121.505, is 
amended to read: 
    121.505 [PROGRAM CRITERIA COMPONENTS.] 
    Subdivision 1.  [MANDATORY COMPONENTS.] A plan for An 
improved learning program shall include:  
    (a) Curricula, instructional strategy and use of materials 
responsive to the individual educational needs and learning 
styles of each pupil to enable students to make continuous 
progress and learn at a rate appropriate to their abilities 
participation by a designated individual as a principal-teacher, 
career teacher, or counselor-teacher, as defined in sections 
121.506 and 121.507;  
    (b) a plan to develop student abilities for both learner 
and teacher in basic skills and applied learning skills and, 
when appropriate, arts, humanities, physical, natural, and 
social sciences; multicultural education; physical, emotional, 
and mental health; consumer economics, and career education 
involve parents in planning the educational experiences of their 
children;  
    (c) Plans to make use of community resources and 
communications media to pursue improved learning opportunities 
for pupils an annual plan for the district to evaluate program 
goals and objectives;  
    (d) a staff development program for teachers and other 
school personnel, such as that found in sections 121.506 and 
121.507 plan for the district to fund the program after the 
third year of the program;  
    (e) A plan to improve the learning environment, including 
use of the community in general, to enhance the learning process;
    (f) A plan for annual and ongoing evaluation of program 
goals and objectives; and 
    (g) A plan to involve parents in planning an improved 
learning program for their children.  
    Subd. 2.  [OPTIONAL COMPONENTS.] A plan for An improved 
learning program may include:  
    (a) A principal-teacher and career teacher program as 
defined in section 121.506 efforts to improve curricula 
strategies, instructional strategies, and use of materials which 
respond to the individual educational needs and learning styles 
of each pupil in order to enable each pupil to make continuous 
progress and to learn at a rate appropriate to that pupil's 
abilities;  
    (b) A counselor-teacher program as defined in section 
121.507 efforts to develop student abilities in basic skills; 
applied learning skills; and, when appropriate, arts; humanities;
physical, natural, and social sciences; multicultural education; 
physical, emotional, and mental health; consumer economics; and 
career education; 
    (c) use of community resources and communications media to 
pursue improved learning opportunities for pupils;  
     (d) staff development for teachers and other school 
personnel;  
     (e) improvements to the learning environment, including use 
of the community in general, to enhance the learning process;  
    (c) (f) cooperative efforts with other agencies involved 
with human services or child development and development of 
alternative community based learning experiences;  
    (d) (g) apprenticeship post-secondary education components 
for students pupils who are able to accelerate or programs for 
students pupils with special abilities and interests who are 
given advanced learning opportunities within existing programs;  
    (e) (h) use of volunteers in the learning program;  
    (f) (i) flexible attendance schedules for students pupils;  
    (g) (j) adult education component;  
    (h) (k) coordination with early childhood and family 
education component programs;  
    (i) (l) variable student/faculty ratios for special 
education students to provide for special programming;  
    (j) (m) inclusion of nonpublic students participating in an 
improved learning program pupils as part of the ratio in the 
principal-teacher and career teacher component;  
    (k) (n) application of educational research findings;  
    (l) (o) summer learning experiences for students as 
recommended by the principal-teacher and career teacher;  
    (m) (p) use of educational assistants, teacher aides or 
paraprofessionals as part of the improved learning program;  
    (n) (q) establishment of alternative criteria for high 
school graduation; and 
    (o) (r) variable age and class size groupings of students.  
    Sec. 3.  Minnesota Statutes 1982, section 129B.01, 
subdivision 2, is amended to read: 
    Subd. 2.  [TERMS, COMPENSATION, REMOVAL, VACANCIES.] The 
membership terms, compensation, removal of members and filling 
of vacancies shall be as provided for in section 15.0575; 
members appointed by organizations shall be subject to 
reappointment or removal by the appointing organizations. 
    Sec. 4.  Minnesota Statutes 1982, section 129B.02, is 
amended to read: 
    129B.02 [PURPOSE.] 
    Subdivision 1.  [CONCERN FOR FUTURE.] The legislature of 
the state of Minnesota expresses concern over the future of 
elementary and secondary education in this state, its ability to 
meet the educational needs of the public school students, the 
professional growth and satisfaction of school staffs, the 
effectiveness and efficiency of present schools and their 
learning processes, continuing pupil unit cost escalation and 
the resulting financial crisis which this brings about.  New 
approaches to the learning process, better utilization use of 
professional staff and community resources, different 
requirements as to course offerings, course content, grading, 
graduation and school attendance must be researched and 
developed.  It is believed that revised programs, innovations, 
new attitudes about learning and the public schools' 
responsibilities can be effectively achieved if such research 
and development are is performed by the council on quality 
education and at the local school level by the school's staff 
and with involvement by the students and their community.  
Although funds spent now for such these purposes can produce 
substantial educational and cost benefits in the future, such 
these capital type funds are seldom available within any single 
school district's budget. 
    Subd. 2.  [RESEARCH AND DEVELOPMENT.] The purpose of the 
council on quality education is, therefore, to encourage, 
promote, aid, and perform research and development for quality 
education in Minnesota elementary and secondary schools, to 
evaluate the results of significant innovative programs and to 
disseminate information about these programs throughout the 
state. 
    To these ends, the council through the state board of 
education shall establish a venture fund from which grants or 
loans may be made in support of research and development 
programs relating to the problems and objectives heretofore 
described in this section which shall include but not be limited 
to: 
    (1) effective utilization use of community personnel and 
resources.;  
    (2) developing improved learning programs, including model 
personnel policies and procedures, new staffing and educational 
concepts such as differentiated staffing and comprehensive 
developmental and educational planning for individual pupils.; 
    (3) assessment and evaluation of education programs.;  
    (4) developing a management and unit of instructional 
objectives design which will provide procedures to increase a 
school's accountability by relating time and dollars to the 
amount of learning produced.;  
    (5) determining responsibilities to be assumed by the 
schools exclusively or concurrently with other agencies or 
individuals.;  
    (6) effective dissemination of educational information.;  
    (7) developing new knowledge about learning and teaching.;  
    (8) developing model educational programs as alternatives 
to existing educational practices and curricula and alternative 
delivery systems that will improve curriculum offerings for 
small rural schools.;  
    (9) model programs and innovations to increase equality of 
educational opportunities.;  
    (10) research and testing of new concepts of educational 
efficiency, effectiveness and cost benefits.; and 
    (11) comprehensive interdisciplinary programs in health 
education and comprehensive programs designed to coordinate and 
integrate the delivery of pupil support services.  
    Subd. 3.  [NEW CONCEPTS.] The council shall not be limited 
to supporting innovations, programs or procedures supplementary 
to existing school structures and programs but may assist or 
research entirely new concepts such as open schools, informal 
schools and the like.  It is the legislature's intent that any 
supported program shall hold promise of both educational and 
cost benefits and that the costs and improvements in learning 
effectiveness introduced thereby shall be measured and related.  
The council shall provide for an evaluation of each program 
which it supports with a grant or loan.  
    The council may also review literature and other 
information about innovative programs in Minnesota and other 
states and disseminate the results of this research throughout 
the state.  The council may identify ideas for innovative 
programs in the course of this research and solicit proposals 
from school boards for grants for such programs; provided. 
However, not to exceed more than ten percent of the funds 
appropriated to the venture fund in any year may be expended to 
fund such research and programs. 
    Subd. 4.  [REPORT TO LEGISLATURE.] The council shall make a 
report to the legislature by November 15 of each even-numbered 
year to the legislature concerning all research and all 
proposals received and, the dispositions made thereof of them by 
the council and the state board of education, the evaluations of 
the programs that were funded, and of receipts and expenditures 
resulting from sales of materials developed through venture fund 
grants. 
    Sec. 5.  Minnesota Statutes 1982, section 129B.04, is 
amended to read: 
    129B.04 [PROPOSALS.] 
    Subdivision 1.  [REQUIREMENTS.] The A school board of any 
local school district or any group of such school boards may 
develop a proposal for a grant or loan in support of a research 
and development program of the kind described in section 129B.02.
Except for grants according to subdivision 1a, every such 
proposal shall include: 
    (1) a statement of the objectives of the program, and the 
procedures for achieving the objectives to achieve them; 
    (2) a description of the evaluation procedures for 
measuring the effectiveness of the program; 
    (3) provision for such fiscal control and fund accounting 
procedures as are necessary to assure proper disbursement and 
accounting for funds paid to the applicant; 
    (4) provision for administration of the program by the 
local school district, or in cooperation with other school 
districts, educational institutions, or local agencies under the 
supervision of the local school district; and 
    (5) a description of the involvement of local how school 
staff, students pupils, and members of the community are 
involved in planning and implementing the program.  
     Subd. 1a.  [MINI GRANTS.] The council may award grants not 
to exceed $5,000 to districts to (1) disseminate information 
about successful projects initiated by the district with a grant 
from the venture fund, or (2) replicate cost-effective 
innovations which either were initiated in other districts with 
venture fund support or were validated by the department of 
education or federal agencies.  The council shall prescribe the 
form and manner of application for these grants. 
    Subd. 2.  [PROCEDURE.] Every program proposal shall be 
submitted to the council created by section 129B.01, not less 
than three two months before the planned commencement of the 
program.  The council shall recommend approval or disapproval, 
or shall modify and then recommend such modification with 
respect to every proposal submitted to it.  The council shall 
also recommend the amount and type of grant to be made in 
support of the proposed program in the light of the then 
currently available moneys in the venture fund, which.  This 
information shall be provided to the council by the state board 
of education.  The council shall also recommend what rules and 
regulations, if any, shall be suspended or modified in order to 
implement the proposal.  Only such proposals as are recommended 
for approval shall be transmitted by the council to the state 
board, and.  All such these proposals shall be approved and 
funded from the venture fund by the state board as recommended 
by the council unless the state board, within 30 days of receipt 
of after receiving a proposal from the council, shall make makes 
other disposition of the proposal by formal board action.  One 
half of each grant recommended by the council and funded by the 
state board may be deemed an interest free loan to be and repaid 
over a five year period years.  
    Sec. 6.  [129B.041] [COPYRIGHT AND SALE OF PRODUCTS.] 
    Subdivision 1.  [COPYRIGHT.] Products of projects and 
programs funded pursuant to sections 129B.01 to 129B.05, 
including curriculum and instructional materials, computer and 
telecommunications software, and associated manuals and reports, 
may be copyrighted by the council in the name of the state and 
may be sold.  However, the state shall sell the products to all 
school districts and public agencies in the state at prices that 
do not exceed the cost of reproduction and distribution.  
    Subd. 2.  [SALE.] The council shall enter into an agreement 
with the Minnesota educational computing consortium for the sale 
and distribution of computer and telecommunications software 
products of projects and programs funded pursuant to sections 
129B.01 to 129B.05.  The agreement shall provide that the 
products sold be clearly labeled as products developed pursuant 
to a grant or loan from the council on quality education.  
    Subd. 3.  The education products revolving account is 
established in the state treasury.  Except as provided in the 
agreement between the council and the Minnesota educational 
computing consortium pursuant to subdivision 2, proceeds up to 
the cost of reproduction and distribution from the sale of 
products under this section shall be deposited in this account. 
All funds in this account are annually appropriated to the 
department of education and shall be used to reproduce and 
distribute products of projects and programs funded pursuant to 
sections 129B.01 to 129B.05.  
    Subd. 4.  Proceeds in excess of costs from the sale of 
products pursuant to this section shall be shared equally 
between the state and the school district which developed the 
product with a grant from the council.  The school district 
share is appropriated to the department of education and shall 
be paid to the district.  The state share is appropriated to the 
department of education and shall be placed in the venture fund 
of the council and used to fund similar projects.  
    Sec. 7.  Minnesota Statutes 1982, section 129B.05, is 
amended to read: 
    129B.05 [STATE BOARD AND COMMISSIONER.] 
    Subdivision 1.  [GENERAL POWERS.] The state board of 
education shall develop and promulgate such additional 
recommendatory guidelines as may be appropriate for the 
furtherance of to further sections 129B.01 to 129B.05 and the 
development and implementation of the contemplated programs 
contemplated herein, for its benefit and the benefit of the 
council and applicants.  The commissioner of education shall 
make available to the council at its request such the staff as 
the council deems necessary to perform its functions. 
    Subd. 2. [CONSULTANTS.] The council may also employ or 
contract for the services of outside consultants, and.  The 
consultants may be for purposes such as research, evaluation, 
dissemination, cost-benefit analyses, and inservice training. 
The council may contract with one or more qualified consultants 
or law firms specializing in securing broadcast and telecast 
licenses from the federal communications commission.  The 
consultant or law firm shall assist with the preparation of all 
necessary license applications to the federal communications 
commission on behalf of school districts recommended by the 
council as transmission sites.  The council may use as much of 
the annual appropriation to the state department of education, 
made for the purposes of sections 129B.01 to 129B.05 as is 
necessary, shall be made available to the council for this 
purpose. 
    Sec. 8.  Minnesota Statutes 1982, section 129B.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORIZATION.] The school board of any 
district, however organized, which receives early childhood and 
family education moneys from the council on quality education 
shall provide those services in one elementary school attendance 
an area, or an area within the district, if the council deems 
the area to be appropriate.  The council on quality education 
shall prescribe the form and manner of application for the 
programs and shall select the grant recipients.  These programs 
shall be as equally distributed as possible among districts in 
cities of the first class, in suburbs, and outside the seven 
county metropolitan area.  
    Sec. 9.  Minnesota Statutes 1982, section 129B.09, 
subdivision 12, is amended to read: 
    Subd. 12.  [NEGOTIATED GRANTS.] For the 1981-1982 and 
1982-1983 1983-1984 school years year the council on quality 
education may fund up to 36 early childhood and family education 
programs according to the negotiated grants procedure in 
sections 129B.01 to 129B.05. 
    For the 1983-1984 school year, the council on quality 
education shall only make grants to the early childhood and 
family education programs which were funded for the 1982-1983 
school year.  
    Sec. 10.  [REVIEW OF EARLY CHILDHOOD AND FAMILY EDUCATION 
FORMULAS.] 
    The council on quality education, with the assistance of 
the state board, shall review various formulas for statewide 
funding of early childhood and family education programs.  The 
formulas reviewed shall include a formula using a per capita aid 
amount distributed to school districts through the community 
education program and designated for early childhood and family 
education programs.  The council shall report to the legislature 
by February 15, 1984, regarding its review of formulas.  
    Sec. 11.  [REPORT TO LEGISLATURE.] 
    The council on quality education shall submit a report to 
the education committees of the legislature by February 15, 1984 
containing evaluation data on programs designed to benefit 
handicapped adults and recommendations for policies for school 
districts to extend services to handicapped adults.  
    Sec. 12.  [INSTRUCTION TO THE REVISOR.] 
    In the next edition of Minnesota Statutes, the revisor of 
statutes is requested to renumber Minnesota Statutes, sections 
121.501, 121.502, 121.503, 121.504, 121.505, 121.506, and 
121.507 in an appropriate place in Minnesota Statutes, chapter 
129B.  The revisor of statutes is also requested to retitle 
chapter 129B as "Grants for Education."  
    Sec. 13.  [REPEALER.] 
    Minnesota Statutes 1982, sections 122.542 and 124.251 are 
repealed.  
    Sec. 14.  [APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [COUNCIL ON QUALITY EDUCATION; VENTURE FUND 
GRANTS.] For the council on quality education venture fund 
grants pursuant to sections 129B.01 to 129B.05, there is 
appropriated 
     $778,000.....1984, 
     $816,000.....1985.  
    (a) The appropriation for fiscal year 1984 includes $84,000 
for grants for fiscal year 1983 payable in fiscal year 1984, and 
$694,000 for grants for fiscal year 1984 payable in fiscal year 
1984.  
    (b) The appropriation for fiscal year 1985 includes 
$122,000 for grants for fiscal year 1984 payable in fiscal year 
1985, and $694,000 for grants for fiscal year 1985 payable in 
fiscal year 1985.  
    (c) Any unexpended balance remaining from the 
appropriations in this subdivision for 1984 shall not cancel and 
shall be available for the second year of the biennium.  
    Subd. 3.  [EARLY CHILDHOOD AND FAMILY EDUCATION PROGRAMS.] 
For early childhood and family education programs pursuant to 
sections 129B.06 to 129B.09, there is appropriated:  
     $1,028,000.....1984.
    The appropriation for fiscal year 1984 includes $209,000 
for grants for fiscal year 1983 payable in fiscal year 1984, and 
$819,000 for grants for fiscal year 1984.  The amount of the 
appropriation for grants for fiscal year 1984 is the total 
appropriation for these grants.  
    The council on quality education shall prorate this amount 
among the eligible districts in proportion to the ratio of the 
district's grant for fiscal year 1983 to the total amount of 
grants made for fiscal year 1983.  However, the total amount of 
revenue received by a district for fiscal year 1984 pursuant to 
this subdivision and Minnesota Statutes, section 124.271, 
subdivision 2a, clause (2) shall not exceed the amount of the 
district's grant for fiscal year 1983. 

                               ARTICLE 10 

                            TEACHER MOBILITY 
    Section 1.  Minnesota Statutes 1982, section 125.60, 
subdivision 2, is amended to read:  
    Subd. 2.  The board of any district may grant an extended 
leave of absence without salary to any full or part time 
elementary, secondary or area vocational-technical school 
teacher who has been employed by the district for at least five 
years and has at least ten years of allowable service, as 
defined in section 354.05, subdivision 13, or the bylaws of the 
appropriate retirement association or ten years of full time 
teaching service in Minnesota public elementary, secondary and 
area vocational-technical schools.  The maximum duration of an 
extended leave of absence pursuant to this section shall be 
determined by mutual agreement of the board and the teacher at 
the time the leave is granted and shall be at least three but no 
more than five years.  An extended leave of absence pursuant to 
this section shall be taken by mutual consent of the board and 
the teacher and may be granted only once.  If the school board 
denies a teacher's request, it shall provide reasonable 
justification for the denial.  
    Sec. 2.  Minnesota Statutes 1982, section 125.60, 
subdivision 3, is amended to read:  
    Subd. 3.  [REINSTATEMENT.] Except as provided in 
subdivisions 6a and 6b, a teacher on an extended leave of 
absence pursuant to this section shall have the right to be 
reinstated to a position for which he the teacher is licensed at 
the beginning of any school year which immediately follows a 
year of the extended leave of absence, unless he the teacher is 
discharged or placed on unrequested leave of absence or his the 
contract is terminated pursuant to section 125.12 or 125.17 
while he the teacher is on the extended leave.  The board shall 
not be obligated to reinstate any teacher who is on an extended 
leave of absence pursuant to this section, unless the teacher 
advises the board of his the intention to return before February 
1 in the school year preceding the school year in which he the 
teacher wishes to return.  The board shall notify the 
commissioner within 30 days of being notified that a teacher 
intends to return from an extended leave.  
    Sec. 3.  Minnesota Statutes 1982, section 125.60, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPLICATION PROCEDURES; LIMITS.] No school board 
shall grant an extended leave of absence pursuant to this 
section without applying for and receiving authorization from 
the commissioner of education.  The commissioner of education 
shall establish procedures for applications and shall approve or 
disapprove applications pursuant to this subdivision within the 
limits of the appropriation for the purposes of sections 354.094 
and 354A.091.  Each application shall state whether or not the 
teacher requesting the extended leave of absence pursuant to 
this section intends to pay the employee contribution and 
requests state payment of the employer contribution into the 
teacher's retirement fund pursuant to section 354.094 or 
354A.091 in order to receive retirement service credit for years 
spent on leave.  The commissioner shall approve no more than 300 
250 applications for extended leaves beginning in the 1981-1982, 
1982-1983 and 1983-1984 school years year for teachers who 
intend to pay employee contributions and request state payment 
of employer contributions.  
    If more than 300 250 applications for extended leaves 
beginning in any school year are received by March 15 of the 
preceding school year, the commissioner may decide which 
applications to approve according to the order of receipt, a 
method ensuring participation by teachers from the maximum 
possible number of districts, random allotment or any 
combination of these methods.  Applications received by the 
commissioner after March 15 shall be considered for approval 
according to the order of receipt within the limits prescribed 
by this subdivision.  
    The commissioner shall not approve any applications for 
extended leaves beginning in the 1984-1985 or any subsequent 
school year for teachers who intend to pay employee 
contributions and request state payment of employer 
contributions.  There is no limit on the number of applications 
which may be approved for extended leaves for teachers who do 
not intend to pay employee contributions or who do not request 
state payment of employer contributions. 
    Sec. 4.  Minnesota Statutes 1982, section 125.611, 
subdivision 8, is amended to read: 
    Subd. 8.  [PAYMENT; REDUCTION.] An eligible teacher who is 
offered and accepts an early retirement incentive contract 
pursuant to subdivision 7 shall receive an early retirement 
incentive in the amount of $10,000.  This amount shall be 
reduced by $500 for each year that a teacher is over the age of 
55 years to a maximum age of 60 years and by an additional 
$1,500 for each year that a teacher is over the age of 60 
years.  The age of the teacher shall be determined as of the 
June 30 in the school year during which the application for the 
early retirement incentive is made. 
    Sec. 5.  Minnesota Statutes 1982, section 125.611, 
subdivision 9, is amended to read: 
    Subd. 9.  [DESEGREGATION DISTRICTS.] Notwithstanding the 
provisions of subdivision 8, beginning in the 1983-1984 school 
year, an eligible teacher who is employed by a school district 
which is implementing a desegregation plan ordered by federal 
court or approved by the state board, and who is offered and 
accepts an early retirement incentive contract pursuant to 
subdivision 7, shall receive an early retirement incentive in 
the amount of $15,000 $12,500.  This amount shall be reduced by 
$750 $625 for each year that a teacher is over the age of 55 
years to a maximum age of 60 years and by an additional $2,250 
$1,875 for each year that a teacher is over the age of 60 years. 
The age of the teacher shall be determined as of the June 30 in 
the school year during which the application for the early 
retirement incentive is made. 
    Sec. 6.  Minnesota Statutes 1982, section 354.094, 
subdivision 1, is amended to read:  
    Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] If A member 
is granted an extended leave of absence pursuant to section 
125.60 or 136.88, except as provided in subdivision 1a he or 1b, 
may pay employee contributions and receive allowable service 
credit toward annuities and other benefits under this chapter, 
for each year of his the leave by paying into the fund employee 
contributions provided the member and the employing board make 
the required employer contribution in any proportion they may 
agree upon, during the period of the leave which shall not 
exceed five years.  Except as provided in subdivision 1a or 1b, 
the state shall not pay employer contributions into the fund for 
each any year for which a member who is on extended leave pays 
employee contributions into the fund.  The employee and employer 
contributions shall be based upon the rates of contribution 
prescribed by section 354.42 for the salary received during the 
year immediately preceding the extended leave.  Payments for the 
years for which a member is receiving service credit while on 
extended leave shall be made on or before June 30 of each fiscal 
year for which service credit is received. 
    Sec. 7.  Minnesota Statutes 1982, section 354.094, 
subdivision 1a, is amended to read:  
    Subd. 1a.  [RESTRICTIONS EXCEPTION FOR LEAVES SINCE 
1981-1982.] Notwithstanding subdivision 1, the following 
provisions apply to elementary, secondary and area 
vocational-technical school teachers whose extended leaves begin 
in the 1981-1982, 1982-1983, or 1983-1984 school year and each 
year thereafter:  
    (a) Only A member whose application states the intention to 
pay employee contributions into the fund, requests state payment 
of employer contributions, and is approved by the commissioner 
within the limits of section 125.60, subdivision 7, qualifies 
for the payment of employee contributions and for state payment 
of employer contributions pursuant to subdivision 1 may pay 
employee contributions and receive allowable service credit 
toward annuities and other benefits under this chapter for each 
year of the leave during the period of the leave which shall not 
exceed five years;  
    (b) The state shall pay employer contributions into the 
fund for a member described in clause (a) for no more than the 
first three years of the leave, provided the member who is on 
extended leave pays the employee contribution into the fund by 
the payment date specified in subdivision 1;  
    (c) A member whose application is approved as to the 
member's eligibility under section 125.60, subdivisions 1 and 2 
but whose application does not request state payment of employer 
contributions or is disapproved as to state payment of employer 
contributions, or who is in the fourth or fifth year of leave 
affected by clause (b) may pay employee contributions and 
receive allowable service credit as provided in subdivision 1 if 
the member and his the employing school board make the required 
employer contribution, in any proportion which they may agree 
upon, by the payment date specified in subdivision 1.  
    Sec. 8.  Minnesota Statutes 1982, section 354.094, is 
amended by adding a subdivision to read:  
    Subd. 1b.  [PRE-MAY 16, 1981 LEAVE EXCEPTION.] 
Notwithstanding subdivision 1, the following provisions apply 
only to elementary, secondary, and area vocational technical 
school teachers whose extended leaves began in the 1978-1979, 
1979-1980, or 1980-1981 school years:  
    (a) A member whose period of extended leave began on or 
before May 15, 1981, may pay employee contributions and receive 
allowable service credit toward annuities and other benefits 
under this chapter for each year of the leave during the period 
of the leave which does not exceed five years;  
    (b) The state shall pay employer contributions into the 
fund for a member described in clause (a) of this subdivision 
for each year of the leave for which the member who is on 
extended leave pays the employee's contribution into the fund by 
the payment date specified in subdivision 1.  
    Sec. 9.  Minnesota Statutes 1982, section 354.66, 
subdivision 4, is amended to read: 
    Subd. 4.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding any 
provision of to the contrary in this chapter relating to the 
salary figure to be used for the determination of contributions 
or the accrual of service credit to the contrary, a teacher 
assigned to a part-time position pursuant to this section shall 
continue to make employee contributions to and to accrue 
allowable service credit in the retirement fund during the 
period of part-time employment pursuant to this section upon on 
the same basis and in the same amounts as would have been paid 
and accrued if the teacher had been employed on a full-time 
basis provided that, except as provided in subdivision 4a, prior 
to June 30 each year the member and the employing board make 
that portion of the required employer contribution to the 
retirement fund, in any proportion which they may agree upon, 
that is based on the difference between the amount of 
compensation that would have been paid if the teacher had been 
employed on a full-time basis and the amount of compensation 
actually received by the teacher for the services rendered in 
the part-time assignment.  The state shall make the full that 
portion of the required employer contributions to the retirement 
fund on behalf of the teacher to the retirement association for 
the part time teaching service that is based on the amount of 
compensation actually received by the teacher for the services 
rendered in the part-time assignment in the manner described in 
section 354.43, subdivisions 1, 2 and 5.  The employee and 
employer contributions shall be based upon the rates of 
contribution prescribed by section 354.42.  Full accrual of 
allowable service credit and employee contributions for 
part-time teaching service pursuant to this section and section 
354A.094 shall not continue for a period longer than ten years.  
    Sec. 10.  Minnesota Statutes 1982, section 354.66, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [EXCEPTION.] Notwithstanding the provisions of 
subdivision 4, a teacher whose assignment to a part-time 
position pursuant to this section is authorized by the 
commissioner within the limits of subdivision 9, shall continue 
to make employee contributions and to accrue allowable service 
credits in the retirement fund during the period of part-time 
employment on the same basis and in the same amounts as would 
have been paid and accrued if the teacher had been employed on a 
full-time basis.  The state shall make the full required 
employer contributions to the retirement fund on behalf of the 
teacher in the manner described in section 354.43, subdivisions 
1 and 5.  The employee and employer contributions shall be based 
upon the rates of contribution prescribed by section 354.42. 
Full accrual of allowable service credit and employee 
contributions for part-time teaching service pursuant to this 
section and section 354A.094 shall not continue for a period 
longer than ten years.  
    Sec. 11.  Minnesota Statutes 1982, section 354.66, 
subdivision 9, is amended to read: 
    Subd. 9.  [APPLICATIONS; LIMITS.] For the 1983-1984 and 
1984-1985 school years, a school district shall not assign a 
teacher to a part time teaching position qualifying for full 
accrual of service credit from and employee contributions to the 
retirement fund pursuant to this section without applying for 
and receiving the authorization of the commissioner of 
education.  In cooperation with the board of trustees of the 
teachers retirement association and the boards of trustees of 
the appropriate teachers retirement fund associations and within 
the limits of the amount appropriated for the purpose of this 
section, the commissioner of education shall approve or 
disapprove the applications from school districts for 
authorization to assign teachers to part time teaching positions 
qualifying for full accrual of service credit from and employee 
contributions to the retirement fund pursuant to this section; 
provided he.  The commissioner shall not approve more than 55 
125 total applications pursuant to this section and section 
354A.094 for participation in the fund in any fiscal year each 
of the 1983-1984 and 1984-1985 school years by teachers who 
intend to pay employee contributions and request full state 
payment of employer contributions.  If more than 55 125 
applications for any school year are received by the 
commissioner by March 15 of the preceding school year, the 
commissioner may decide which applications to approve according 
to the order of receipt, a method ensuring participation by 
teachers from the maximum possible number of districts, random 
allotment or any combination of these methods.  Applications 
received by the commissioner after March 15 shall be considered 
for approval according to the order of receipt within the limits 
prescribed by this subdivision.  The state board for community 
colleges and the state university board may within the limits 
appropriated to them for purposes of this section assign a 
teacher to a part time teaching position qualifying for full 
accrual of service credit from and employee contributions to the 
retirement fund pursuant to this section without applying for 
and receiving the authorization of the commissioner of education.
    Sec. 12.  Minnesota Statutes 1982, section 354A.091, 
subdivision 1, is amended to read:  
    Subdivision 1.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding 
any provision to the contrary of this chapter or the articles of 
incorporation or bylaws of an association relating to the salary 
figure to be used for the determination of contributions or the 
accrual of service credit, except as provided in subdivision 1a 
or 1b, an elementary, secondary or area vocational-technical 
school teacher in the public schools of a city of the first 
class who is granted an extended leave of absence pursuant to 
section 125.60, may pay employee contributions to the applicable 
association and shall be entitled to receive allowable service 
credit in the applicable that association for each year of leave 
, provided the member and the employing board make the required 
employer contributions, in any proportion they may agree upon, 
to that association during the period of leave which shall not 
exceed five years.  To obtain the service credit, the teacher on 
extended leave shall make an employee contribution to the 
applicable association each year during the period of the 
leave.  The extended leave period for which a teacher shall be 
entitled to receive allowable service credit pursuant to this 
section shall not exceed the leave duration maximum set forth in 
section 125.60, subdivision 2.  If the teacher on extended leave 
makes the employee contribution pursuant to this section during 
a leave of absence year, Except as provided in subdivision 1a or 
1b the state shall not make an employer contribution on behalf 
of the teacher to the applicable association for that year.  The 
employee and employer contributions shall be in amounts equal to 
the employee and employer contribution rates in effect for other 
active members of the association covered by the same program 
applied based upon the rates of contribution prescribed by 
section 354A.12 as applied to a salary figure equal to the 
teacher's actual covered salary for the plan year immediately 
preceding the leave.  Payment of the employee contribution and 
employer contributions authorized pursuant to this section shall 
be made by the teacher on or before June 30 of the fiscal year 
for which service credit is to be obtained, and payment of the 
employer contribution shall be made by the state within 30 days 
of notification by the association of receipt of the required 
employee contribution received.  No allowable service with 
respect to a year of extended leave of absence shall be credited 
to a teacher until payment of the required employee and employer 
contributions has been received by the association. 
    Sec. 13.  Minnesota Statutes 1982, section 354A.091, 
subdivision 1a, is amended to read:  
    Subd. 1a.  [CONTRIBUTION RESTRICTIONS EXCEPTION FOR LEAVES 
SINCE 1981-1982.] Notwithstanding subdivision 1, the following 
provisions apply to elementary, secondary and area 
vocational-technical school teachers whose extended leaves begin 
in the 1981-1982, 1982-1983, or 1983-1984 school year and each 
year thereafter:  
    (a) Only A member whose application states the intention to 
pay employee contributions to the applicable association, 
requests state payment of the employer contribution, and is 
approved by the commissioner within the limits of section 
125.60, subdivision 7, qualifies for the payment of employee 
contributions and for state payment of employer contributions 
pursuant to subdivision 1 may pay employee contributions to the 
applicable association and receive allowable service credit in 
that association for each year of leave during the period of the 
leave, which shall not exceed five years;  
    (b) The state shall pay employer contributions for a member 
described in clause (a) for no more than the first three years 
of the leave, provided the member who is on extended leave pays 
the employee contribution to the applicable association by the 
payment date specified in subdivision 1;  
    (c) A member whose application is approved as to the 
member's eligibility under section 125.60, subdivisions 1 and 2 
but whose application does not request state payment of employer 
contributions or is disapproved as to state payment of employer 
contributions, or who is in the fourth or fifth year of leave 
affected by clause (b) may pay employee contributions and 
receive allowable service credit as provided in subdivision 1 if 
the member and his the employing school board make the required 
employer contribution, in any proportion which they may agree 
upon, by the payment date specified in subdivision 1.  
    Sec. 14.  Minnesota Statutes 1982, section 354A.091, is 
amended by adding a subdivision to read:  
    Subd. 1b.  [PRE-MAY 16, 1981 LEAVE EXCEPTION.] 
Notwithstanding subdivision 1, the following provisions apply 
only to elementary, secondary, and area vocational technical 
school teachers whose extended leaves began in the 1978-1979, 
1979-1980 or 1980-1981 school years:  
    (a) A member whose period of extended leave began on or 
before May 15, 1981, may pay employee contributions and receive 
allowable service credit toward annuities and other benefits 
under this chapter for each year of the leave during the period 
of the leave which does not exceed five years;  
    (b) The state shall pay employer contributions into the 
applicable fund for a member described in clause (a) of this 
subdivision for each year of the leave for which the member who 
is on extended leave pays the employee's contribution into the 
fund by the payment date specified in subdivision 1.  
    Sec. 15.  Minnesota Statutes 1982, section 354A.094, 
subdivision 4, is amended to read: 
    Subd. 4.  [RETIREMENT CONTRIBUTIONS.] Notwithstanding any 
provision to the contrary in this chapter or the articles of 
incorporation or bylaws of an association relating to the salary 
figure to be used for the determination of contributions or the 
accrual of service credit, a teacher assigned to a part-time 
position pursuant to this section shall continue to make 
employee contributions to and to accrue allowable service credit 
in the applicable association during the period of part-time 
employment pursuant to this section upon on the same basis and 
in the same amounts as would have been paid and accrued if the 
teacher had been employed on a full-time basis provided that, 
except as provided in subdivision 4a, prior to June 30 each year 
the member and the employing board make that portion of the 
required employer contribution to the applicable association in 
any proportion which they may agree upon, that is based on the 
difference between the amount of compensation that would have 
been paid if the teacher had been employed on a full-time basis 
and the amount of compensation actually received by the teacher 
for services rendered in the part-time assignment.  The state 
shall make the full that portion of required employer 
contributions to the applicable association on behalf of the 
teacher to the applicable association for the part time teaching 
service that is based on the amount of compensation actually 
received by the teacher for the services rendered in the 
part-time assignment in the manner described in section 354.43, 
subdivisions 1, 2 and 5.  The employee and employer 
contributions shall be based upon the rates of contribution 
prescribed by section 354A.12.  Full membership, accrual of 
allowable service credit and employee contributions for part 
time teaching service by a teacher pursuant to this section and 
section 354.66 shall not continue for a period longer than ten 
years.  
    Sec. 16.  Minnesota Statutes 1982, section 354A.094, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [EXCEPTION.] Notwithstanding the provisions of 
subdivision 4, a teacher whose assignment to a part-time 
position pursuant to this section is authorized by the 
commissioner within the limits of subdivision 9, shall continue 
to make employee contributions to and to accrue allowable 
service credit in the applicable association during the period 
of part-time employment on the same basis and in the same 
amounts as would have been paid and accrued if the teacher had 
been employed on a full-time basis.  The state shall make the 
full required employer contributions to the applicable 
association on behalf of the teacher in the manner described in 
section 354.43, subdivisions 1 and 5.  The employee and employer 
contributions shall be based upon the rates of contribution 
prescribed by section 354A.12.  Full membership accrual of 
allowable service credit and employee contributions for 
part-time teaching service by a teacher pursuant to this section 
and section 354.66 shall not continue for a period longer than 
ten years.  
    Sec. 17.  Minnesota Statutes 1982, section 354A.094, 
subdivision 9, is amended to read: 
    Subd. 9.  [APPLICATION APPROVAL; LIMITS.] For the 1983-1984 
and 1984-1985 school years, a district shall not assign a 
teacher to a part time teaching position qualifying for full 
membership in, accrual of service credit from and employee 
contributions to a teachers retirement fund association pursuant 
to this section without applying for and receiving the 
authorization of the commissioner of education.  In cooperation 
with the boards of trustees of the appropriate retirement fund 
associations and within the limits of the amounts appropriated 
for the purpose of this section, the commissioner of education 
shall approve or disapprove the applications from districts for 
authorization to assign teachers to part time teaching positions 
qualifying for full membership in, accrual of service credit 
from and employee contributions to a teachers retirement fund 
association pursuant to this section; provided he the 
commissioner shall not approve more than 55 125 total 
applications pursuant to this section and section 354.66 for 
participation in the fund in any fiscal year each of the 
1983-1984 and 1984-1985 school years by teachers who intend to 
pay employee contributions and request full state payment of 
employer contributions.  If more than 55 125 applications for 
any school year are received by the commissioner by March 15 of 
the preceding school year, the commissioner may decide which 
applications to approve according to the order of receipt, a 
method ensuring participation by teachers from the maximum 
possible number of districts, random allotment, or any 
combination of these methods. Applications received by the 
commissioner after March 15 shall be considered for approval 
according to the order of receipt within the limits prescribed 
by this subdivision. 
    Sec. 18.  [REPEALER.] 
    Minnesota Statutes 1982, section 124.611 is repealed.  
    Sec. 19.  [APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [EXTENDED LEAVES OF ABSENCE.] To meet the state's 
obligation prescribed in Minnesota Statutes 1982, sections 
354.094 and 354A.091, there is appropriated:  
     $1,143,000.....1984,
     $1,524,000.....1985.
    Subd. 3.  [PART-TIME TEACHING.] To meet the state's 
obligation prescribed in Minnesota Statutes 1982, sections 
354.66 and 354A.094, there is appropriated:  
     $ 74,000.....1984,
     $182,000.....1985.
    Subd. 4.  [EARLY RETIREMENT INCENTIVES.] To meet the 
state's obligation prescribed in Minnesota Statutes 1982, 
section 125.611, there is appropriated:  
     $1,983,000.....1984,
     $1,962,500.....1985.  
    Subd. 5.  [NONCANCELLATION; FUNDING RESTRICTION.] Any 
unexpended balances remaining from the appropriations in this 
section for fiscal year 1984 shall not cancel but shall be 
available for the second year of the biennium.  Notwithstanding 
the provisions of Minnesota Statutes 1982, sections 354.43 and 
354A.12, the state's obligations prescribed in Minnesota 
Statutes 1982, sections 354.094, 354.66, 354A.091, and 354A.094 
shall not be financed out of standing appropriations for the 
state's obligations pursuant to Minnesota Statutes 1982, chapter 
354 or 354A.  
    Subd. 6.  [TRANSFER AUTHORITY.] If any appropriation for 
any year in subdivision 2, 3 or 4 exceeds the amount needed to 
pay the state's obligation for that year under that subdivision, 
then the excess amount may be used to make payments for that 
year pursuant to another subdivision.  
    Sec. 20.  [EFFECTIVE DATE.] 
    Sections 1, 3, 11, and 17 of this article are effective the 
day following final enactment. 

                               ARTICLE 11

                               LIBRARIES
    Section 1.  Minnesota Statutes 1982, section 134.07, is 
amended to read: 
    134.07 [LIBRARIES, READING ROOMS; TAX PUBLIC LIBRARY 
SERVICE.] 
    Subdivision 1.  The governing body of any city or county 
may establish and maintain a public library, a public reading 
room, or both, service for the use of its inhabitants.  By 
ordinance or resolution it may set apart for the benefit thereof 
any public property of the city or county.  Except as provided 
in subdivision 2, In any statutory city and in any city of the 
second, third, or fourth class, and in any county, the governing 
body thereof may levy an annual tax of not more than 2.6 2/3 
mills on the dollar, of all taxable property therein except 
counties may not tax property which is already taxed for public 
library service.  The proceeds of any such the tax shall be 
known as the library fund.  
    Subd. 2.  The governing body of any city of the fourth 
class located in any county having over 7,000 and less than 
9,000 inhabitants and over 70 full and fractional congressional 
townships, operating under a home rule charter, may levy an 
annual tax of not to exceed 1.6 2/3 mills for such purposes, 
notwithstanding any limitation contained in its home rule 
charter.  
    Sec. 2.  Minnesota Statutes 1982, section 134.08, is 
amended to read: 
    134.08 [WHEN ESTABLISHED BY VOTE; EXISTING LIBRARIES 
ESTABLISHING AND DISCONTINUING LIBRARY SERVICE; APPLICABILITY OF 
LAW.] 
    Subdivision 1.  [ESTABLISHMENT.] If a public library or 
reading-room service is not otherwise established under section 
134.07, the governing body of the municipality city or county, 
upon the petition of 50 eligible voters, as defined in section 
200.02 201.014, subdivision 25 1, of the municipality city 
or county, in a number not less than five percent of the number 
of persons who voted at the last general election in the city or 
county, shall submit the question of the establishment or 
provision of public library services to the voters at the next 
municipal general election.  If two-thirds a majority of the 
votes cast on the question are in the affirmative, the governing 
body shall establish the library or reading-room shall provide 
public library service as authorized in section 134.12 or 
375.335 and levy a yearly an annual tax for its support, within 
the limits fixed by section 134.07.  
    Subd. 2.  [DISCONTINUANCE.] If public library service is 
established under the provisions of subdivision 1, it may be 
discontinued only after a majority of the votes cast on the 
question are in the affirmative on a question on a ballot in a 
general election.  The question of discontinuance of public 
library service shall be placed on the ballot at the next 
general election upon the petition of eligible voters, as 
defined in section 201.014, subdivision 1, of the city or 
county, in a number not less than five percent of the number of 
persons who voted at the last general election in the city or 
county.  
    Subd. 3.  [APPLICABILITY.] All public libraries and 
reading-rooms library service heretofore established and now 
existing in cities are and counties is continued and all 
ordinances and resolutions setting apart public property for 
their support are hereby confirmed.  Nothing in sections 134.08 
to 134.15 shall be construed as abridging any power or duty in 
respect to libraries conferred by any city charter.  If a city 
charter does not address matters provided for in chapter 134, 
the provisions of chapter 134 shall apply.  
    Sec. 3.  Minnesota Statutes 1982, section 134.09, is 
amended to read: 
    134.09 [DIRECTORS LIBRARY BOARDS; TERM; REMOVAL.] 
    Subdivision 1.  [APPOINTMENT.] When any such public library 
or reading room service is established, except in any city of 
the first class operating under a home rule charter, the mayor 
of the city or president of the statutory city, with the 
approval of the council for a city library or the board of 
commissioners for a county library, shall appoint a board of 
five, seven or nine directors members from among the residents 
of the city or county, but.  The number of members on the board 
shall be determined by resolution or ordinance adopted by the 
council or the board of commissioners.  Not more than one of 
whom council member or county commissioner shall at any time be 
a member of such governing body, such the library board.  The 
appointments to shall be made prior to before the first meeting 
of such the library board after the end of the fiscal year.  
     Subd. 2.  [TERM OF OFFICE.] If nine board members are 
appointed, three shall hold office for one year, three for two 
years and three for three years.  If seven members be are 
appointed, three shall hold office for one year, two for two 
years, and two for three years; if five be are appointed, two 
shall hold office for one year, two for two years, and one for 
three years.  The number of directors on the board shall be 
determined by resolution or ordinance adopted by the council.  
All terms shall end with the fiscal year.  Annually thereafter 
such the mayor or president with the approval of the council, or 
the board of county commissioners shall appoint board members 
for the term of three years and until their successors qualify a 
sufficient number of directors members to fill the places of 
those whose term or terms expire.  A library board member shall 
not be eligible to serve more than three consecutive three-year 
terms.  
    Subd. 2 3.  [REMOVAL OF MEMBERS.] The mayor or president, 
by and with the consent approval of the council, or the board of 
county commissioners may remove any director member for 
misconduct or neglect.  
    Subd. 3.  Terms of directors in office at the time Laws 
1945, Chapter 46, takes effect shall expire at the end of the 
city's fiscal year current at the expiration of their terms as 
heretofore provided.  
    Subd. 4.  [ABOLISHMENT.] Upon recommendation of a majority 
of any library board created under the provisions of subdivision 
1, the governing body of such the city or county may abolish 
such the library board at the end of any fiscal year provided 
that such the governing body shall simultaneously establish a 
successor library board of either five, seven or nine members by 
resolution or ordinance.  In the event of such resolution or 
ordinance, the mayor, with the approval of the council, shall 
appoint a library board of the number of members as provided by 
said resolution or ordinance.  If nine are appointed, three 
shall hold office for one year, three for two years and three 
for three years.  If seven members be appointed, three shall 
hold office for one year, two for two years, and two for three 
years; if five be appointed, two shall hold office for one year, 
two for two years, and one for three years.  Annually thereafter 
such mayor shall appoint for the term of three years and until 
their successors qualify a sufficient number of directors to 
fill the places of those whose term or terms expire.  All terms 
shall end with the fiscal year.  The appointment of successor 
board members shall be made as provided in subdivision 1.  The 
terms of successor board members shall be as provided in 
subdivision 2.  
    Sec. 4.  Minnesota Statutes 1982, section 134.10, is 
amended to read: 
    134.10 [BOARD VACANCIES; COMPENSATION.] 
    Vacancies in The library board of directors president shall 
be reported report vacancies in the board to the council and 
filled by like or the board of county commissioners.  The 
council or board of county commissioners shall fill the 
vacancies by appointment for the unexpired term.  Directors 
Library board members shall receive no compensation for their 
services as such but may be reimbursed for actual and necessary 
traveling expenses incurred in the discharge of library board 
duties and activities. 
    Sec. 5.  Minnesota Statutes 1982, section 134.11, is 
amended to read: 
    134.11 [ORGANIZATION OF BOARD; RULES BONDING; DUTIES.] 
    Subdivision 1.  [ORGANIZATION.] Immediately after 
appointment, such the library board shall organize by electing 
one of its number as president and one as secretary, and from 
time to time it may appoint such other officers and employees as 
it deems necessary.  The secretary, before entering upon his 
duties, shall give bond to the municipality in an amount fixed 
by the directors, conditioned for the faithful discharge of his 
official duties.  
    Subd. 2.  [DUTIES.] The library board shall adopt such 
bylaws and regulations for the government of the library and 
reading-room and for the conduct of its business as may be 
expedient and conformable to law.  It shall have exclusive 
control of the expenditure of all moneys collected for or placed 
to the credit of the library fund, of interest earned on all 
moneys collected for or placed to the credit of the library 
fund, of the construction of library buildings, and of the 
grounds, rooms, and buildings provided for library purposes.  
All moneys received for such the library shall be paid into the 
city or county treasury, credited to the library fund, kept 
separate from other moneys of the municipality city or county, 
and paid out only upon itemized vouchers approved approval by 
the board.  The library board may lease rooms for library use, 
fix.  The library board shall appoint a qualified library 
director and other staff as necessary, establish the 
compensation of employees, and remove any of them at pleasure 
for cause.  With the approval of the council or board of county 
commissioners, the library board may purchase grounds and erect 
a library building thereon.  
    Sec. 6.  Minnesota Statutes 1982, section 134.12, is 
amended to read: 
    134.12 [BENEFITS OF LIBRARY.] 
    Subdivision 1.  [NON-RESIDENTS TO RECEIVE.] Any library 
board of directors may admit to the benefits of its library 
persons not residing within the municipality its city or county 
under regulations and upon conditions as to payment and security 
prescribed by it the library board. 
    Subd. 2.  [LOAN OF BOOKS, CONTRACTS WITH CITIES AND TOWNS.] 
The library board may contract with the county board of the 
county in which the library is situated or the county board of 
any adjacent county, or with the governing body of any 
neighboring town or city, to loan books of the library, either 
singly or in traveling libraries, library materials to residents 
of the contracting county, town, or city.  
    Subd. 3.  [USE OF FREE PUBLIC LIBRARY; TAX LEVY.] Any such 
county board or city governing body may contract with the board 
of directors of any free city or county public library for the 
use of the library by the residents of the county, town, or city 
who do not have the use of a free public library, upon the terms 
and conditions as those granted residents of the city or county 
where the public library is located, and to pay such the library 
board of directors an annual amount therefor.  Any such county 
board or city governing body may establish a library fund by 
levying an annual tax upon all taxable property which is not 
already taxed for the support of any free public library and all 
taxable property which is situated outside of any city in which 
is situated a free public library.  
    Sec. 7.  Minnesota Statutes 1982, section 134.13, is 
amended to read: 
    134.13 [DIRECTORS NOW IN OFFICE; ANNUAL REPORT; 
EXCEPTIONS.] 
    The directors of any such library or reading room in office 
under existing laws shall so continue until the expiration of 
their terms, but their successors shall be appointed and 
vacancies filled under the provision of sections 134.08 to 
134.15.  At the first regular meeting of the board As soon as 
practicable following the end of each the fiscal year of a city, 
the library board shall report to the governing body of the 
municipality city or county all amounts received during the 
preceding year and the sources thereof, the amounts expended and 
for what purposes, the number of books library materials on 
hand, the number purchased and loaned, and such other 
information as it deems advisable.  A copy of such report No 
later than April 1 of each year the library board shall be filed 
file this information with the Library Division, state 
department of education on forms supplied by the department.  
Nothing in this section shall apply to libraries in cities of 
the first class.  
    Sec. 8.  Minnesota Statutes 1982, section 134.14, is 
amended to read: 
    134.14 [TITLE TO PROPERTY; FREE USE.] 
    All property given, granted, conveyed, donated, devised, or 
bequeathed to, or otherwise acquired by, any municipality city 
or county for a public library or reading-room shall vest in, 
and be held in the name of, such municipality the city or county 
and any conveyance, grant, donation, devise, bequest, or gift 
made to, or in the name of, any public library or library board 
shall be deemed to have been made directly to such municipality 
the city or county to be used as provided in section 134.11.  
Every public library and reading-room established under sections 
134.08 134.07 to 134.15 shall be forever free to the use of the 
inhabitants of the municipality city or county subject to such 
reasonable regulations as the directors library board may adopt. 
    Sec. 9.  Minnesota Statutes 1982, section 134.15, is 
amended to read: 
    134.15 [GIFTS; CONTRACTS.] 
    With the consent of the governing body of any city or 
county, expressed by ordinance or resolution, and within the 
limitations of sections 134.08 to 134.15 as to the rate of 
taxation, the library board may accept any gift, grant, devise, 
or bequest made or offered by any person for public library 
purposes, or for the establishment, enlargement, or maintenance 
of an art gallery or museum in connection with its library, and 
may carry out the conditions of such the donation.  The 
municipality city or county in all such cases is authorized to 
acquire a site, levy a tax, and pledge itself by ordinance or 
resolution to a perpetual compliance with all the terms and 
conditions of the gift, grant, devise, or bequest so accepted. 
    Sec. 10.  Minnesota Statutes 1982, section 134.30, is 
amended to read: 
    134.30 [DEFINITIONS.] 
    Subdivision 1.  As used in sections 134.30 to 134.35 and 
sections 134.351, 134.352, and 134.353, The terms defined used 
in this section shall chapter 134 have the meanings ascribed to 
given them in this section. 
    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 or section 375.33.  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. 
    Subd. 3.  "Public library services" means services provided 
by or on behalf of a public library and does not include 
services for elementary schools, secondary schools or 
post-secondary educational institutions. 
    Subd. 4.  "Regional public library system" means a 
multicounty public library service agency that provides free 
access to all residents of the region without discrimination, 
and is organized under the provisions of sections 134.12, 
375.335, 471.59 or chapter 317 chapter 134 or 317, or section 
471.59. 
    Subd. 5.  "Basic system services" means services offered by 
all regional public library systems either directly or by 
contract.  These services shall include, but are not limited to, 
communication among participants, resource sharing, delivery of 
materials, reciprocal borrowing, and cooperative reference 
service. 
    Subd. 6.  "Multi-county, multi-type library system" means a 
cooperative network composed of any combination of public 
libraries, regional public library systems, public school 
libraries, public or private college or university libraries and 
any other libraries which share services and resources within a 
multi-county area.  
    Subd. 7.  "City" or "cities" means home rule and statutory 
cities unless specifically provided otherwise.  
    Sec. 11.  Minnesota Statutes 1982, section 134.32, 
subdivision 1, is amended to read: 
    Subdivision 1.  The department shall provide the grants 
specified in this section from any available state or, federal, 
or other funds. 
    Sec. 12.  Minnesota Statutes 1982, section 134.32, 
subdivision 7, is amended to read: 
    Subd. 7.  Nothing within the provisions of this section 
shall be construed to allow state money to be used for the 
construction of library facilities It may provide grants for 
construction or remodeling of library facilities from any state 
and federal funds specifically appropriated for this purpose. 
    Sec. 13.  Minnesota Statutes 1982, section 134.351, 
subdivision 3, is amended to read: 
    Subd. 3.  [AGREEMENT.] In order for a multi-county, 
multi-type library system to qualify for a planning, development 
or operating grant pursuant to sections 134.352 and 134.353 and 
section 16 of this article, each participating library in the 
system shall adopt an organizational agreement providing for the 
following:  
    (a) Sharing of resources among all participating libraries; 
    (b) Long-range planning for cooperative programs;  
    (c) The development of a delivery system for services and 
programs;  
    (d) The development of a bibliographic data base; and 
    (e) A communications system among all cooperating libraries.
    Sec. 14.  Minnesota Statutes 1982, section 134.351, 
subdivision 7, is amended to read: 
    Subd. 7.  [REPORTS.] Each multi-county, multi-type system 
receiving a grant pursuant to section 134.352 or 134.353 or 
section 16 of this article shall provide an annual progress 
report to the department of education.  The department shall 
report before November 15 of each year to the legislature on all 
projects funded under sections 134.352 and section 134.353 and 
section 16 of this article.  
    Sec. 15.  Minnesota Statutes 1982, section 134.353, is 
amended to read: 
    134.353 [MULTI-COUNTY, MULTI-TYPE LIBRARY SYSTEM 
DEVELOPMENT GRANT.] 
    The state board of education may provide development and 
operating grants to multi-county, multi-type library systems in 
their second and subsequent years of operation.  In awarding a 
development and operating grant, the state board shall consider 
the extra costs incurred in systems located in sparsely 
populated and large geographic regions. 
    Sec. 16.  [134.354] [MULTI-COUNTY, MULTI-TYPE LIBRARY 
SYSTEM OPERATING GRANT.] 
    The state board of education may provide operating grants 
to multi-county, multi-type library systems.  In awarding an 
operating grant, the state board shall consider the extra costs 
incurred in systems located in sparsely populated and large 
geographic areas.  
    Sec. 17.  Minnesota Statutes 1982, section 134.36, is 
amended to read: 
    134.36 [RULES.] 
    The state board of education shall promulgate rules as 
necessary for implementation of any provision of sections 134.30 
to 134.353 library grant programs.  
    Sec. 18.  Minnesota Statutes 1982, section 375.335, is 
amended to read: 
    375.335 [REGIONAL LIBRARIES PUBLIC LIBRARY SYSTEMS.] 
    Subdivision 1.  [ESTABLISHMENT.] Two or more contiguous 
counties, except counties one or more of which contain a city of 
the first class over 300,000 according to the 1960 United States 
census or two or more cities located in two or more counties 
may, through action by their governing bodies under the 
provisions of section 471.59, establish and maintain a regional 
public library system, even though any one or more of the 
counties or cities may already have a county library with a 
library board; provided that in any such county or city already 
having a county library board, the approval of said the library 
board shall also be required.  Cities in any of the contracting 
counties having public libraries may join in the regional public 
library system by being parties to the agreement which 
establishes the regional public library system through action of 
their library boards and their city councils, or as hereinafter 
provided in subdivision 3. 
    Subd. 2.  [LIBRARY BOARD.] The agreement establishing such 
a regional public library may system shall provide for a library 
board to govern the organization having all the powers and 
duties of city and county library boards as provided in section 
375.33 sections 134.11, 134.12, and 134.13 and including 
exclusive determination of all library services to be provided 
under terms of the agreement as defined in section 134.30, 
subdivision 5, and exclusive control of the expenditure of all 
funds for the services.  Such The regional library system board 
may consist of as many members as the contracting parties deem 
necessary, appointed in such numbers a number from among the 
residents of the contracting parties and for such terms by each 
county board party to the contract as may be determined by the 
contracting parties, irrespective of the existence of one or 
more city and county library boards already in existence in the 
participating cities and counties.  Not more than one member 
from each contracting party shall be a member of the governing 
body of a contracting party and no member may be appointed to 
serve more than three consecutive three-year terms.  In such the 
participating cities and counties, such the portion of the 
proceeds of the city and county library tax authorized by 
section 375.33, subdivision 1 134.07, shall be used for the 
support of the regional public library system as the contracting 
agreement may provide. 
    Subd. 3.  [CITY PARTICIPATION.] Where such a regional 
public library system is established, any city located in any of 
the contracting counties which is excluded from the county tax 
supporting the regional public library system under the 
provisions of section 375.33, subdivision 1 134.07, may, upon 
recommendation of its library board and upon action by its 
governing body, be included in such the county tax and become an 
integral part of the regional public library system.  Such 
cities and any other cities in the participating counties Cities 
included in the county tax and with public libraries which are 
part of the regional public library system, whether or not 
governed by home rule charter provisions, upon action by their 
city council, may levy taxes for the additional support of their 
local library services provided that said combined levies shall 
not exceed the statutory limit on the library levy.  Any such 
local public library board or governing body may, at its option, 
continue to control such the local library fund or pay all or 
part thereof into the regional public library system fund, to be 
used for the increase or improvement of public library services 
in such the city. 
    Subd. 4.  [PROPERTY.] All property given, granted, 
conveyed, donated, devised or bequeathed to, or otherwise 
acquired by any regional library board or any regional public 
library system board however created shall vest in, and be held 
in the name of, the regional library board or regional public 
library system board.  Any conveyance, grant, donation, devise, 
bequest, or gift made to, or in the name of, any regional 
library or public library system shall be deemed to have been 
made directly to the regional public library system board.  
    Subd. 5.  [RATIFICATION.] All property heretofore given, 
granted, conveyed, donated, devised, bequeathed to, or otherwise 
acquired by any regional library board or any regional public 
library system board however created is hereby validated, 
ratified and confirmed as the property of the board.  
    Subd. 6.  [RATIFICATION.] Any multicounty regional public 
library heretofore created, and the agreements creating them, 
are hereby validated, ratified, and confirmed and the benefits 
of subdivisions 1 to 6 5 shall hereafter apply to these 
libraries. 
    Sec. 19.  Minnesota Statutes 1982, section 648.39, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FREE DISTRIBUTION.] The revisor of 
statutes shall without charge distribute each edition of 
Minnesota Statutes, supplement to the Minnesota Statutes, and 
the Laws of Minnesota to the persons, officers, departments, 
agencies, or commissions listed in this subdivision.  Prior to 
distribution of Minnesota Statutes, supplement to the Minnesota 
Statutes, or the Laws of Minnesota, the revisor of statutes 
shall inquire whether the full number of copies authorized by 
this subdivision are required for their work.  Unless a smaller 
number is needed, each edition shall be distributed without 
charge as follows: 
    (a) 30 copies to the supreme court; 
    (b) 1 copy to each judge of a district court; 
    (c) 1 copy to the clerk of each district court for use in 
each courtroom of the district court of his county; 
    (d) 100 copies to the state law library; 
     (e) 100 copies to the law school of the University of 
Minnesota; 
     (f) 100 copies to the office of the attorney general; 
     (g) 10 copies each to the governor's office, the 
departments of agriculture, commerce, corrections, education, 
health, transportation, labor and industry, economic security, 
natural resources, public safety, public service, public 
welfare, and revenue, and the pollution control agency; 
     (h) 1 copy each to other state departments, agencies, 
boards, and commissions not specifically named in this 
subdivision; 
     (i) 1 copy to each member of the legislature; 
     (j) 100 copies for the use of the senate and 150 copies for 
the use of the house of representatives; 
     (k) 4 copies to the secretary of the senate; 
     (l) 4 copies to the chief clerk of the house of 
representatives; 
     (m) 1 copy to each judge, district attorney, clerk of court 
of the United States and the deputy clerk of each division of 
the United States district court in this state, the secretary of 
state of the United States, the library of congress, and the 
Minnesota historical society;  
    (n) 20 copies each to the department of administration, 
state auditor, and legislative auditor; 
    (o) 1 copy to each county library maintained pursuant to 
section 134.12 or 375.33 chapter 134, except in counties 
containing cities of the first class.  If a county has not 
established a county library pursuant to section 134.12 or 
375.33 chapter 134, the copy shall be provided to any public 
library in the county; and 
    (p) 50 copies to the revisor of statutes. 
    Sec. 20.  [TEMPORARY RULES.] 
    The state board of education may adopt temporary rules, 
according to the provisions of Minnesota Statutes, sections 
14.29 to 14.36, to implement a grant program for construction of 
library facilities using federal funds.  
    Sec. 21.  [REPEALER.] 
    Minnesota Statutes 1982, sections 134.03; 134.06; 134.16; 
134.19; 134.352; and 375.33 are repealed.  
    Sec. 22.  [INSTRUCTION TO THE REVISOR.] 
    The revisor of statutes, under the powers in section 
648.34, shall renumber sections 134.01 and 134.02 by placing 
them in chapter 123; shall renumber section 134.04 by placing it 
in chapter 121; shall renumber section 134.30 by placing it at 
the beginning of chapter 134; and shall renumber section 375.335 
by placing it in chapter 134.  
    Sec. 23.  [APPROPRIATION.] 
    Subdivision 1.  There is appropriated from the general fund 
to the department of education the sums indicated in this 
section for the fiscal years ending June 30 in the years 
designated.  
    Subd. 2.  [BASIC SUPPORT GRANTS.] For grants pursuant to 
sections 134.32 to 134.35 and 134.36 for the provision of 
library services there is appropriated:  
    $4,381,000.....1984, 
    $4,605,000.....1985.  
    The appropriation for 1984 includes $595,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $3,786,000 for 
aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $668,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $3,937,000 for 
aid for fiscal year 1985 payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$4,454,000 for fiscal year 1984 and $4,632,000 for fiscal year 
1985.  
    If the Crow River regional library system and the Western 
Plains regional library system merge by July 1, 1983, the basic 
support grant paid to the merged system pursuant to section 
134.35, subdivision 4, shall be increased by $24,000 in fiscal 
year 1984 and $12,000 in fiscal year 1985.  These additional 
grants are included in the appropriations in this subdivision.  
    Subd. 3.  [MULTI-COUNTY LIBRARY SYSTEMS.] For grants 
pursuant to section 134.353 and section 16 of this article to 
multi-county, multi-type library systems there is appropriated:  
    $188,000.....1984, 
    $197,000.....1985.  
    The appropriation for 1984 includes $26,000 for aid for 
fiscal year 1983 payable in fiscal year 1984, and $162,000 for 
aid for fiscal year 1984 payable in fiscal year 1984.  
    The appropriation for 1985 includes $29,000 for aid for 
fiscal year 1984 payable in fiscal year 1985 and $168,000 for 
aid for fiscal year 1985 payable in fiscal year 1985.  
    The appropriations are based on aid entitlements of 
$190,000 for fiscal year 1984 and $198,000 for fiscal year 1985. 

                               ARTICLE 12

                    TEACHER RETIREMENT CONTRIBUTIONS 
     Section 1.  [APPROPRIATIONS.] 
     Subdivision 1.  The sums indicated in this section are 
appropriated from the general fund to the agencies and for the 
purposes indicated, to be available for the fiscal years ending 
June 30 in the years indicated.  If the appropriation for either 
year is insufficient, the appropriation for the other year is 
available for it. 
     Subd. 2.  [TEACHERS RETIREMENT ASSOCIATION:  TEACHERS 
STATEWIDE.] To the teachers retirement association, to meet the 
state's obligation prescribed in Minnesota Statutes, section 
354.43, there is appropriated:  
    $87,508,200.....1984, 
    $92,137,200.....1985.  
    Subd. 3.  [TEACHERS RETIREMENT ASSOCIATION:  SUPPLEMENTAL 
BENEFITS-1915.] To the teachers retirement association, to meet 
the state's obligation prescribed in Minnesota Statutes, section 
354.55, subdivision 5, there is appropriated:  
    $1,500.....1984, 
    $1,500.....1985.  
    Subd. 4.  [TEACHERS RETIREMENT ASSOCIATIONS IN CITIES OF 
THE FIRST CLASS.] To the commissioner of finance for payment to 
teachers retirement associations in Minneapolis, St. Paul, and 
Duluth to meet the state's obligation prescribed in Minnesota 
Statutes, section 354A.12, subdivision 2, there is appropriated: 
    $17,917,000.....1984, 
    $18,791,200.....1985.  
    Subd. 5.  [EMPLOYER SOCIAL SECURITY CONTRIBUTIONS.] To the 
commissioner of employee relations for payment to the federal 
government to meet the state's obligation prescribed in 
Minnesota Statutes, section 355.46, there is appropriated:  
    $80,155,900.....1984, 
    $86,385,400.....1985.  
    Subd. 6.  [SOCIAL SECURITY COSTS OF ADMINISTRATION.] To the 
commissioner of employee relations to meet the state's 
obligation prescribed in Minnesota Statutes, sections 355.46 and 
355.49, there is appropriated:  
    $51,000.....1984, 
    $51,000.....1985. 

                               ARTICLE 13 

                         AID PAYMENT REDUCTIONS 
    Section 1.  Minnesota Statutes 1982, section 121.904, 
subdivision 4a, as amended by Laws 1982, Third Special Session 
chapter 1, article 3, section 1, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to section 275.125, subdivision 9a, 
and Laws 1976, Chapter 20, Section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the June and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2 which are for the fiscal year 
payable in that fiscal year; or 
    (3) thirty-two percent of the amount of the spread levy 
certified in the current prior calendar year, plus or minus 
auditor's adjustments, not including levy portions that are 
assumed by the state, which remains after subtracting, by fund, 
the amounts levied for the following purposes:  
    (i) reducing or eliminating projected deficits in the 
appropriated fund balance accounts for unemployment insurance 
and bus purchases;  
     (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, Chapter 20, Section 4; and 
     (iii) retirement and severance pay pursuant to section 
275.125, subdivision 6a, and Laws 1975, Chapter 261, Section 4;  
     (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, and 
amounts levied pursuant to section 275.125, subdivision 14a.  
     (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
     (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable.  
    Sec. 2.  [REDUCTIONS FOR FISCAL YEAR 1984.] 
    Aid payments that were not reduced in fiscal year 1983 
because of the recognition of school district tax settlement 
revenue, pursuant to Minnesota Statutes, section 121.904, 
subdivision 4a, as amended by Laws 1982, Third Special Session 
chapter 1, article 3, section 1, shall be reduced from aid 
payments in fiscal year 1984 by approximately $7,600,000.  The 
commissioner shall reduce aid payments authorized by the 
appropriations in articles 1 to 12 in accordance with section 10 
of article 6.  
    Sec. 3.  [REDUCTIONS FOR REVENUE EQUITY.] 
    Pursuant to section 7, of article 1, aid payments shall be 
reduced in fiscal year 1985 by approximately $4,269,000. 
    Approved June 14, 1983

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