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1984 Minnesota Session Laws

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                         Laws of Minnesota 1984 

                        CHAPTER 463-H.F.No. 1393
           An act relating to education; providing for aids to 
          education, tax levies, and the distribution of tax 
          revenues; modifying the foundation aid formula;  
          granting certain powers and duties to school boards, 
          school districts, the state board of education, the 
          commissioner of education, the department of 
          education, the state board of vocational technical 
          education, the state director of vocational technical 
          education, the higher education coordinating board, 
          and others; providing for an equalized summer school 
          aid and levy; increasing the community education aid 
          and levy; providing for an equalized early childhood 
          and family education aid and levy; establishing a 
          programs of excellence program; requiring an arts 
          education study; expanding in-service and 
          instructional effectiveness training programs; 
          improving the planning, evaluation, and reporting 
          process; establishing assessment programs; 
          establishing a research and development grant program; 
          appropriating money; amending Minnesota Statutes 1982, 
          sections 120.05, subdivision 2; 120.06; 121.09; 121.21;
          121.212, subdivision 1; 121.213; 121.214; 121.215; 
          121.2155; 121.216; 121.218; 121.904, by adding a 
          subdivision; 121.908, by adding a subdivision; 
          121.912, by adding a subdivision; 121.935, 
          subdivisions 2 and 6; 121.936, subdivision 1; 123.36, 
          subdivision 10; 123.74; 123.741, as amended; 123.742, 
          as amended; 124.19, by adding a subdivision; 124.20; 
          124.201, subdivision 1; 124.214, subdivision 1; 
          124.245, subdivision 1; 124.564; 124.565, subdivisions 
          1, 6, and 7; 124.572, as amended; 124.573, subdivision 
          3; 125.12, subdivision 3; 125.17, subdivision 2; 
          125.611, by adding a subdivision; 125.185, subdivision 
          4; 136A.02, subdivision 6; 275.125, subdivision 9a, 
          and by adding subdivisions; 465.721; 471.61, 
          subdivisions 1 and 2a; and 475.61, subdivision 1; 
          Minnesota Statutes 1983 Supplement, sections 120.17, 
          subdivision 3b; 121.15, subdivision 1; 121.503, 
          subdivision 5; 121.601; 121.608; 121.609; 121.904, 
          subdivision 4a; 123.36, subdivision 13; 123.743; 
          124.155, subdivision 1; 124.195, subdivisions 1, 9, 
          and by adding a subdivision; 124.201, subdivisions 2, 
          4, and 5; 124.2122, subdivisions 1 and 2; 124.2126, 
          subdivision 3; 124.2138; 124.214, subdivision 2; 
          124.271, subdivision 2b; 124.5611; 124.5612; 124.5614; 
          124.5615; 124.5616; 124.5617; 124.5618; 124A.06, 
          subdivision 1; 124A.12, subdivision 1; 124A.14; 
          124A.16; 125.032, subdivision 2a; 129B.02, subdivision 
          4; 129B.041, subdivisions 1 and 3; 129B.32, 
          subdivision 3; 129B.36, subdivision 7; 136C.01; 
          136C.02, subdivision 3; 136C.04, subdivisions 7, 10, 
          and by adding a subdivision; 275.125, subdivisions 2e, 
          2k, 8, 8a, 9b, 11a, 11b, and 11c; 298.28, subdivision 
          1; 466.06; and 475.61, subdivision 3; Laws 1976, 
          chapter 20, section 5, subdivision 1; Laws 1983, 
          chapter 314, article 6, section 34, subdivision 12; 
          article 7, section 45; article 8, section 23; and 
          article 9, section 14, subdivision 3; proposing new 
          law coded in Minnesota Statutes, chapters 121; 123; 
          124; 126; 129B; and 136C; repealing Minnesota Statutes 
          1982, sections 121.217; 124.201, as amended; 124.212, 
          subdivision 1; 124.245, subdivision 1a; 124.246, 
          subdivisions 2a and 5; 124.26, subdivisions 1a and 5; 
          124.273, subdivisions 1a and 2a; 124.32, subdivisions 
          1a, 1e, and 2a; 124.565, subdivisions 3 and 4; 
          124.572, subdivisions 2a, 8, and 8a; 124.573, 
          subdivisions 2a, 3b, 5, and 6; 124.574, subdivisions 
          2, 2a, 3a, and 8; 125.60, subdivision 2a; 129B.06; 
          129B.07; 129B.08; 129B.09, as amended; and 275.125, 
          subdivisions 2g and 2h; Minnesota Statutes 1983 
          Supplement, sections 124.11, subdivisions 2a and 2b; 
          124.225, subdivision 12; 124.271, subdivision 6; 
          124.32, subdivision 5a; 124.5613, subdivision 1; 
          129B.041, subdivision 2; and 275.125, subdivisions 2i 
          and 2j. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1 
  FOUNDATION AID
    Section 1.  [124.175] [AFDC PUPIL COUNT.] 
    Each year by March 1, the department of public welfare 
shall certify to the department of education, for each school 
district, the number of pupils from families receiving aid to 
families with dependent children who were enrolled in a public 
school on October 1 of the preceding year.  
    Sec. 2.  Minnesota Statutes 1982, section 124.19, is 
amended by adding a subdivision to read: 
    Subd. 6.  [INSTRUCTIONAL HOURS.] To be eligible for full 
entitlement of foundation aid, a district must provide to 
students the minimum number of instructional hours per day 
prescribed in the rules of the state board, except as provided 
for in subdivision 5 of this section.  Part of the school day 
may be provided in employment-related or community-based 
instruction, but only within a program which receives annual 
approval by the local district board, is in compliance with 
state board rules, and is on file with the commissioner of 
education.  The information on the employment-related or 
community-based instruction submitted to the commissioner shall 
contain at least an estimate of the number of students involved, 
a description of the alternative instruction, and the percentage 
of the students' instructional year involved.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, 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 $1,346 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.  The formula 
allowance shall be $1,585 for the 1984 payable 1985 levies and 
for foundation aid for the 1985-1986 school year.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, 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 .024 for 1981 payable 1982 levies 
minimum aid. 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.  The basic maintenance mill rate shall be 
.024 for the 1983 payable 1984 levies and for foundation aid for 
the 1984-1985 school year.  The basic maintenance mill rate 
shall be .0235 for the 1984 payable 1985 levies and for 
foundation aid for the 1985-1986 school year.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, 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;  
    (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) (8) 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. 6.  Minnesota Statutes 1983 Supplement, section 
124.2138, is amended to read: 
    124.2138 [REVENUE EQUITY AID SUBTRACTION.] 
    Subdivision 1.  [BASIC MAINTENANCE LEVY EQUITY.] (1) In any 
year when If the amount of the maximum levy limitation under 
section 275.125, subdivision 2a, for fiscal year 1985 for any 
district, or for fiscal year 1986 or after for a nonagricultural 
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, clause (1)(b), 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 If the transportation levy for fiscal year 1985 in 
any district, or for fiscal year 1986 and thereafter in a 
nonagricultural 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.  
    Subd. 4.  [NONAGRICULTURAL DISTRICT DEFINED.] For the 
purposes of this section, nonagricultural district means a 
district where the assessed valuation of agricultural land 
identified in section 273.13, subdivisions 4, 6, and 6a, 
comprises less than 60 percent of the assessed valuation of the 
district.  
    Sec. 7.  Minnesota Statutes 1983 Supplement, section 
124A.06, subdivision 1, is amended to read: 
    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 
124.2124, subdivision 1, had been effective for the 1980-1981 
school year by the actual pupil units in the district in the 
1980-1981 school year. 
    (b) For the 1984-1985 school year, multiply the result in 
clause (a) by one.  For the 1985-1986 school year and school 
years thereafter, multiply the result in clause (a) by two.  
    (c) Divide the formula allowance for the school year by 
$1265.  
    (c) (d) Multiply the result in clause (a) (b) by the result 
in clause (b) (c).  
    (d) (e) Subtract 1.25 from the training and experience 
index, and multiply the difference by $300 for the 1984-1985 
school year, or $400 for the 1985-1986 school year and 
thereafter.  
    (e) (f) Select the greater of the result in clause (d) (e) 
or zero. 
    (f) (g) Add the results of clauses (c) (d) and (e) (f). 
    Sec. 8.  Minnesota Statutes 1983 Supplement, section 
124A.12, subdivision 1, is amended to read: 
    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 for the 1984-1985 school year.  For the 
1985-1986 school year and thereafter, the fourth tier allowance 
is the result of the following computation:  
    (a) Subtract 1.25 from the training and experience index, 
and multiply the difference by $150.  
     (b) Select the greater of the result in clause (a) or zero. 
    (c) Add $100 to the result of clause (b).  
    Sec. 9.  Minnesota Statutes 1983 Supplement, section 
124A.14 is amended to read: 
    124A.14 [FIFTH TIER AID WITH 50 PERCENT EQUALIZING FACTOR.] 
    Subdivision 1.  [TOTAL TIER ALLOWANCE.] "Total tier 
allowance" shall mean the sum of the cost differential tier 
allowance, second tier allowance, third tier allowance, and 
fourth tier allowance, as defined in this chapter.  
    Subd. 2.  [PREVIOUS FORMULA AMOUNT.] "Previous formula 
amount" shall mean:  
    (a) the sum of the grandfather revenue, replacement 
revenue, discretionary revenue, and low fund balance revenue the 
district would have received for the 1984-1985 school year if 
the provisions of Minnesota Statutes 1982, sections 124.2123, 
124.2124, 124.2125, and 124.2128 had been effective for the 
1984-1985 school year, divided by 
    (b) the 1984-1985 actual pupil units.  
    (c) The computations in this subdivision shall be made 
assuming that the district would have been entitled to and would 
have levied the maximum allowable under Minnesota Statutes 1982, 
section 275.125, subdivision 7a, and that no levy or aid 
reduction would have been made according to Minnesota Statutes 
1982, section 275.125, subdivision 7c.  
    Subd. 3.  [MINIMUM INCREASE.] "Minimum increase" shall mean 
the amount equal to $25 times the 1984-1985 total pupil units, 
divided by the 1984-1985 actual pupil units. 
     Subd. 4. [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 previous formula amount plus the minimum increase 
minus the total tier allowance for the current year.  If this 
result is less than zero, the fifth tier allowance shall equal 
zero.  
    Subd. 2 5.  [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 6.  [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. 10.  Minnesota Statutes 1983 Supplement, section 
124A.16, is amended to read: 
    124A.16 [COMMENCEMENT OF TIER REVENUE.] 
    Subdivision 1.  [TOTAL TIER ALLOWANCE DEFINITIONS.] "Total 
tier allowance," "previous formula amount," and "minimum 
increase" shall mean the sum of the allowances from the tiers 
specified in sections 124A.06, 124A.08, 124A.10, 124A.12, and 
124A.14 have the meanings given them in section 124A.14. 
    Subd. 2.  [PREVIOUS FORMULA AMOUNT.] "Previous formula 
amount" shall mean the revenue per actual pupil unit from the 
previous formula as specified in section 124A.14, 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 124A.06, 124A.08, 124A.10, 
124A.12, and 124A.14 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 3.  The revenue permitted by this section shall be 
accorded to the lowest numbered tiers, beginning with the cost 
differential tier.  
    Subd. 6 4.  The permitted total revenue per actual pupil 
unit specified in subdivision 4 2 shall be determined prior to 
the reduction according to section 275.125, subdivision 7e.  
    Sec. 11.  Minnesota Statutes 1983 Supplement, 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 total 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 total 
pupil units for that district for that school year, plus 
    (ii) the amount of by which special state aids of chapter 
124 receivable for the same school year, excluding aid 
authorized in sections 124.2137 and 124.646, are estimated to be 
reduced pursuant to section 124.2138, subdivision 1, plus 
    (iii) the amount of by which 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), are estimated to be reduced pursuant 
to section 124.2138, subdivision 1, 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. 12.  Minnesota Statutes 1983 Supplement, section 
298.28, subdivision 1, is amended to read: 
    Subdivision 1.  [DISTRIBUTION FROM GENERAL FUND.] The 
proceeds of the taxes collected under section 298.24, except the 
tax collected under section 298.24, subdivision 2, shall, upon 
certificate of the commissioner of revenue to the general fund 
of the state, be paid by the commissioner of revenue as follows: 
    (1) 2.5 cents per gross ton of merchantable iron ore 
concentrate, hereinafter referred to as "taxable ton," to the 
city or town in which the lands from which taconite was mined or 
quarried were located or within which the concentrate was 
produced.  If the mining, quarrying, and concentration, or 
different steps in either thereof are carried on in more than 
one taxing district, the commissioner shall apportion equitably 
the proceeds of the part of the tax going to cities and towns 
among such subdivisions upon the basis of attributing 40 percent 
of the proceeds of the tax to the operation of mining or 
quarrying the taconite, and the remainder to the concentrating 
plant and to the processes of concentration, and with respect to 
each thereof giving due consideration to the relative extent of 
such operations performed in each such taxing district.  His 
order making such apportionment shall be subject to review by 
the tax court at the instance of any of the interested taxing 
districts, in the same manner as other orders of the 
commissioner. 
     (2) 12.5 cents per taxable ton, less any amount distributed 
under clause (8), to the taconite municipal aid account in the 
apportionment fund of the state treasury, to be distributed as 
provided in section 298.282. 
     (3) 29 cents per taxable ton plus the increase provided in 
paragraph (c) to qualifying school districts to be distributed 
as follows: 
     (a) Six cents per taxable ton to the school districts in 
which the lands from which taconite was mined or quarried were 
located or within which the concentrate was produced.  The 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (b) 23 cents per taxable ton, less any amount distributed 
under part (d), shall be distributed to a group of school 
districts comprised of those school districts wherein the 
taconite was mined or quarried or the concentrate produced or in 
which there is a qualifying municipality as defined by section 
273.134 in direct proportion to school district tax levies as 
follows:  each district shall receive that portion of the total 
distribution which its certified levy for the prior year, 
computed pursuant to section 275.125, comprises of the sum of 
certified levies for the prior year for all qualifying 
districts, computed pursuant to section 275.125.  For purposes 
of distributions pursuant to this part, certified levies for the 
prior year computed pursuant to section 275.125 shall not 
include the amount of any increased levy authorized by 
referendum pursuant to section 275.125, subdivision 2d. 
    (c) On July 15, 1982 and on July 15 in subsequent years, an 
amount equal to the increase derived by increasing the amount 
determined by clause (3)(b) in the same proportion as the 
increase in the steel mill products index over the base year of 
1977 as provided in section 298.24, subdivision 1, clause (a), 
shall be distributed to any school district described in clause 
(3)(b) where a levy increase pursuant to section 275.125, 
subdivision 2d, is authorized by referendum, according to the 
following formula.  Each district shall receive the product of: 
    (i) $150 times the pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), enrolled in the 
second previous school year, less the product of two mills times 
the district's taxable valuation in the second previous year; 
times 
    (ii) the lesser of: 
    (A) one, or 
     (B) the ratio of the amount certified pursuant to section 
275.125, subdivision 2d, in the previous year, to the product of 
two mills times the district's taxable valuation in the second 
previous year. 
     If the total amount provided by clause (3)(c) is 
insufficient to make the payments herein required then the 
entitlement of $150 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to clause 
(3)(c) shall not be applied to reduce foundation aids which the 
district is entitled to receive pursuant to sections 124.2121 to 
124.2128 or the permissible levies of the district.  Any amount 
remaining after the payments provided in this paragraph shall be 
paid to the commissioner of finance who shall deposit the same 
in the taconite environmental protection fund and the northeast 
Minnesota economic protection trust fund as provided in section 
298.28, subdivision 1, clause 10. 
     (d) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
     (4) 19.5 cents per taxable ton to counties to be 
distributed as follows: 
     (a) 15.5 cents per taxable ton shall be distributed to the 
county in which the taconite is mined or quarried or in which 
the concentrate is produced, less any amount which is to be 
distributed pursuant to part (b).  The commissioner shall follow 
the apportionment formula prescribed in clause (1). 
     (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, one 
cent per taxable ton of the tax distributed to the counties 
pursuant to part (a) and imposed on and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county in which the power plant is located. 
     (c) Four cents per taxable ton shall be paid to the county 
from which the taconite was mined, quarried or concentrated to 
be deposited in the county road and bridge fund.  If the mining, 
quarrying and concentrating, or separate steps in any of those 
processes are carried on in more than one county, the 
commissioner shall follow the apportionment formula prescribed 
in clause (1). 
     (5) (a) 25.75 cents per taxable ton, less any amount 
required to be distributed under part (b), to the taconite 
property tax relief account in the apportionment fund in the 
state treasury, to be distributed as provided in sections 
273.134 to 273.136. 
     (b) If an electric power plant owned by and providing the 
primary source of power for a taxpayer mining and concentrating 
taconite is located in a county other than the county in which 
the mining and the concentrating processes are conducted, .75 
cent per taxable ton of the tax imposed and collected from such 
taxpayer shall be distributed by the commissioner of revenue to 
the county and school district in which the power plant is 
located as follows:  25 percent to the county and 75 percent to 
the school district. 
     (6) One cent per taxable ton to the state for the cost of 
administering the tax imposed by section 298.24. 
     (7) Three cents per taxable ton shall be deposited in the 
state treasury to the credit of the iron range resources and 
rehabilitation board account in the special revenue fund for the 
purposes of section 298.22.  The amount determined in this 
clause shall be increased in 1981 and subsequent years in the 
same proportion as the increase in the steel mill products index 
as provided in section 298.24, subdivision 1.  The amount 
distributed pursuant to this clause shall be expended within or 
for the benefit of a tax relief area defined in section 
273.134.  No part of the fund provided in this clause may be 
used to provide loans for the operation of private business 
unless the loan is approved by the governor and the legislative 
advisory commission. 
     (8) .20 cent per taxable ton shall be paid in 1979 and each 
year thereafter, to the range association of municipalities and 
schools, for the purpose of providing an area wide approach to 
problems which demand coordinated and cooperative actions and 
which are common to those areas of northeast Minnesota affected 
by operations involved in mining iron ore and taconite and 
producing concentrate therefrom, and for the purpose of 
promoting the general welfare and economic development of the 
cities, towns and school districts within the iron range area of 
northeast Minnesota. 
     (9) the amounts determined under clauses (4)(a), (4)(c), 
and (5) shall be increased in 1979 and subsequent years in the 
same proportion as the increase in the steel mill products index 
as provided in section 298.24, subdivision 1. 
     (10) the proceeds of the tax imposed by section 298.24 
which remain after the distributions in clauses (1) to (9) and 
parts (a) and (b) of this clause have been made shall be divided 
between the taconite environmental protection fund created in 
section 298.223 and the northeast Minnesota economic protection 
trust fund created in section 298.292 as follows:  In 1981 and 
each year thereafter, two-thirds to the taconite environmental 
protection fund and one-third to the northeast Minnesota 
economic protection trust fund.  The proceeds shall be placed in 
the respective special accounts in the general fund. 
     (a) In 1978 and each year thereafter, there shall be 
distributed to each city, town, school district, and county the 
amount that they received under section 294.26 in calendar year 
1977; provided, however, that the amount distributed in 1981 to 
the unorganized territory number 2 of Lake County and the town 
of Beaver Bay based on the between-terminal trackage of Erie 
Mining Company will be distributed in 1982 and subsequent years 
to the unorganized territory number 2 of Lake County and the 
towns of Beaver Bay and Stony River based on the miles of track 
of Erie Mining Company in each taxing district. 
     (b) In 1978 and each year thereafter, there shall be 
distributed to the iron range resources and rehabilitation board 
the amounts it received in 1977 under section 298.22. 
     On or before October 10 of each calendar year each producer 
of taconite or iron sulphides subject to taxation under section 
298.24 (hereinafter called "taxpayer") shall file with the 
commissioner of revenue and with the county auditor of each 
county in which such taxpayer operates, and with the chief 
clerical officer of each school district, city or town which is 
entitled to participate in the distribution of the tax, an 
estimate of the amount of tax which would be payable by such 
taxpayer under said law for such calendar year; provided such 
estimate shall be in an amount not less than the amount due on 
the mining and production of concentrates up to September 30 of 
said year plus the amount becoming due because of probable 
production between September 30 and December 31 of said year, 
less any credit allowable as hereinafter provided.  Such 
estimate shall list the taxing districts entitled to participate 
in the distribution of such tax, and the amount of the estimated 
tax which would be distributable to each such district in the 
next ensuing calendar year on the basis of the last percentage 
distribution certified by the commissioner of revenue.  If there 
be no such prior certification, the taxpayer shall set forth its 
estimate of the proper distribution of such tax under the law, 
which estimate may be corrected by the commissioner if he deems 
it improper, notice of such correction being given by him to the 
taxpayer and the public officers receiving such estimate.  The 
officers with whom such report is so filed shall use the amount 
so indicated as being distributable to each taxing district in 
computing the permissible tax levy of such county, city or 
school district in the year in which such estimate is made, and 
payable in the next ensuing calendar year, except that in 1978 
and 1979 two cents per taxable ton, and in 1980 and thereafter, 
one cent per taxable ton of the amount distributed under clause 
(4)(c) shall not be deducted in calculating the permissible 
levy.  Such taxpayer shall then pay, at the times payments are 
required to be made pursuant to section 298.27, as the amount of 
tax payable under section 298.24, the greater of (a) the amount 
shown by such estimate, or (b) the amount due under said section 
as finally determined by the commissioner of revenue pursuant to 
law.  If, as a result of the payment of the amount of such 
estimate, the taxpayer has paid in any calendar year an amount 
of tax in excess of the amount due in such year under section 
298.24, after application of credits for any excess payments 
made in previous years, all as determined by the commissioner of 
revenue, the taxpayer shall be given credit for such excess 
amount against any taxes which, under said section, may become 
due from the taxpayer in subsequent years.  In any calendar year 
in which a general property tax levy subject to sections 275.125 
or 275.50 to 275.59 has been made, if the taxes distributable to 
any such county, city or school district are greater than the 
amount estimated to be paid to any such county, city or school 
district in such year, the excess of such distribution shall be 
held in a special fund by the county, city or school district 
and shall not be expended until the succeeding calendar year, 
and shall be included in computing the permissible levies under 
sections 275.125 or 275.50 to 275.59, of such county, city or 
school district payable in such year.  If the amounts 
distributable to any such county, city or school district, after 
final determination by the commissioner of revenue under this 
section are less than the amounts indicated by such estimates, 
such county, city or school district may issue certificates of 
indebtedness in the amount of the shortage, and may include in 
its next tax levy, in excess of the limitations of sections 
275.125 or 275.50 to 275.59 an amount sufficient to pay such 
certificates of indebtedness and interest thereon, or, if no 
certificates were issued, an amount equal to such shortage. 
    There is hereby annually appropriated to such taxing 
districts as are stated herein, to the taconite property tax 
relief account and to the taconite municipal aid account in the 
apportionment fund in the state treasury, to the department of 
revenue, to the iron range resources and rehabilitation board, 
to the range association of municipalities and schools, to the 
taconite environmental protection fund, and to the northeast 
Minnesota economic protection trust fund, from any fund or 
account in the state treasury to which the money was credited, 
an amount sufficient to make the payment or transfer.  The 
payment of the amount appropriated to such taxing districts 
shall be made by the commissioner of revenue on or before May 15 
annually. 
    Sec. 13.  [ISOLATED SCHOOL AID.] 
    In the 1984-1985 school year, a district having more than 
2,500 square miles in area and operating six or more secondary 
schools shall receive aid equal to $50 times the actual pupil 
units in that school year.  
    Sec. 14.  [AID SUBTRACTION INCREASE.] 
    The legislature intends that, as a result of changes in 
school district levy limitations in this article, articles 2 and 
4, the aid subtraction required by section 124.155 will be 
increased by an estimated $2,283,000 for fiscal year 1985.  
    Sec. 15.  [REPEALER.] 
    Minnesota Statutes 1982, section 124.212, subdivision 1, is 
repealed.  
    Sec. 16.  [APPROPRIATION.] 
    There is appropriated from the general fund to the 
department of education the sum of $166,500 for isolated school 
aid for fiscal year 1985.  
    Sec. 17.  [EFFECTIVE DATE.] 
    Section 12 is effective for the distribution required to be 
made on July 15, 1984, and for distributions thereafter. 

                               ARTICLE 2 

                            SUMMER PROGRAMS 
    Section 1.  Minnesota Statutes 1982, section 124.20, is 
amended to read: 
    124.20 [AID FOR SUMMER SCHOOL PROGRAMS AND FLEXIBLE SCHOOL 
YEAR CLASSES.] 
    Subdivision 1.  [PROGRAMS.] Foundation aid for (1) summer 
school classes programs which are not a part of the regular 
school term in hospitals, sanatoriums, and home instruction 
programs, (2) inter-session classes of flexible school year 
programs, and (3) summer school classes programs in elementary 
and secondary schools, and (4) summer school instruction in 
teachers college laboratory schools or in the university 
laboratory school, shall be paid under the provisions of this 
section. 
    Subd. 2.  [DEFINITIONS.] For the purposes of computing 
foundation aid for summer school programs and inter-session 
classes of flexible school year programs, the following phrases 
shall have the meanings given them.  
    (1) "Summer school program pupil units" means full-time 
equivalent pupil units for summer school classes programs and 
inter-session classes of flexible school year programs computed 
under the provisions of section 124.17.  
    (2) "Summer school program instructional revenue allowance" 
means an amount equal to the product of the number of summer 
school program pupil units in a district, times the foundation 
aid formula allowance as defined in section 124.2122 for the 
preceding regular school year.  
    (3) For summer programs in 1982, "summer school revenue 
allowance" means an amount equal to the product of the number of 
summer school pupil units in a district, times 89 percent of the 
foundation aid formula allowance as defined in section 124.2122 
for the preceding regular school year.  "Summer educational 
improvement revenue allowance" means an amount equal to the 
product of 0.005, times the number of actual pupil units in the 
district in the preceding regular school year, times the 
foundation aid formula allowance as defined in section 124.2122 
for the preceding regular school year.  
    (4) "Total summer program revenue allowance" means an 
amount equal to the sum of a district's summer program 
instructional revenue allowance and summer educational 
improvement revenue allowance.  
    (5) "Summer school program aid" means aid for summer school 
programs and inter-session classes of flexible school year 
programs. 
    Subd. 4.  [SUMMER PROGRAM AID.] In fiscal year 1986 and 
each year thereafter, a district shall receive summer program 
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 275.125, subdivision 2k, 
certified in the calendar year before the summer program is 
offered; times 
    (b) the district's total summer program revenue allowance; 
and 
    (2) the levy certified by the district pursuant to section 
275.125, subdivision 2k, in the calendar year before the summer 
program is offered.  
    Subd. 5.  [AID ADJUSTMENT.] The department of education 
shall adjust the summer program 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 summer program 
levy limitations for districts where actual pupil membership 
differs from estimated pupil membership.  
    Subd. 6.  [AUTHORIZED USE OF SUMMER PROGRAM AID AND LEVY.] 
(a) Beginning with the 1985 summer program, a school board may 
use the proceeds of the aid and levy received pursuant to this 
section and section 275.125, subdivision 2k, only for summer 
programs that are offered for credit or required for graduation 
or that provide academic enrichment or remediation.  The 
proceeds may not be used for recreational sports, leisure 
activities, entertainment, recreational activities, crafts, 
hobbies, or any other classes of a similar nature.  Summer 
programs for a handicapped pupil shall relate to the pupil's 
individual education plan.  
    (b) The proceeds may also be used for expenditures during 
the summer for curriculum development, staff development, parent 
or community involvement, experimental educational delivery 
systems, and other measures designed to improve education in the 
district.  
     Sec. 2.  Minnesota Statutes 1982, section 124.201, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROGRAMS.] For fiscal years 1984 and 1985, 
foundation aid for handicapped pupils enrolled in (1) summer 
school classes which are not a part of the regular school term 
in hospitals, sanatoriums, and home instruction programs, (2) 
inter-session classes of flexible school year programs, and (3) 
summer school classes in elementary and secondary schools, and 
(4) summer school instruction in teachers college laboratory 
schools or in the university laboratory school, shall be paid 
under the provisions of this section.  
     Sec. 3.  Minnesota Statutes 1983 Supplement, 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 intersession 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 intersession 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 state board rules shall be included 
in the computation of summer school pupil units for the purposes 
of computing summer school foundation aid for payment in fiscal 
years 1984 and 1985.  
    (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 
intersession classes of flexible school year programs.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
124.201, subdivision 4, is amended 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 275.125, subdivision 2j, 
clause (a), 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 
275.125, subdivision 2k 2j, clause (a), in calendar year 1983. 
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
124.201, subdivision 5, is amended 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 275.125, subdivision 2k 2j, 
clause (b), certified in the calendar year before the summer 
school program is offered 1983; times 
    (b) the district's summer school revenue allowance; and 
    (2) the levy certified by the district pursuant to section 
275.125, subdivision 2k 2j, clause (b) in the calendar year 
before the summer school program is offered 1983.  
     Sec. 6.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 2k, is amended to read: 
    Subd. 2k.  [HANDICAPPED SUMMER SCHOOL PROGRAM LEVY.] In 
1984 and each year thereafter, a district may levy for summer 
school programs for handicapped pupils programs an amount equal 
to the following product:  
    (a) The district's estimated total summer school program 
revenue allowance as defined in section 124.201 124.20, 
subdivision 2, clause (2) for the summer school program 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 regular school 
year, to 
    (ii) the equalizing factor for the current regular school 
year.  
    Sec. 7.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 2l.  [EXCESS LEVY; 1985 SUMMER PROGRAMS.] In addition 
to the levy authorized in subdivision 2k, a district for which 
the summer program instructional revenue allowance for the 1985 
summer program is less than an amount equal to $20 times the 
number of actual pupil units in the district in the regular 
1984-1985 school year prior to the summer program may levy an 
amount computed as follows:  
    (a) $20 times the number of actual pupil units in the 
district in the regular 1984-1985 school year, minus 
    (b) the amount of the summer program instructional revenue 
allowance for the 1985 summer program.  
    This levy shall be used for the same purposes for which the 
summer program instructional revenue allowance may be used.  
    Sec. 8.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, section 275.125, 
subdivisions 2g and 2h, and Minnesota Statutes 1983 Supplement, 
section 275.125, subdivision 2i, are repealed.  
    Subd. 2.  Minnesota Statutes 1982, section 124.201, as 
amended by Laws 1983, chapter 314, article 3, sections 3, 4, 5, 
6, and 7; and by sections 2, 3, 4, and 5 of this article; and 
Minnesota Statutes 1983 Supplement, section 275.125, subdivision 
2j, are repealed.  
    Sec. 9.  [EFFECTIVE DATE.] 
    Section 1 is effective September 1, 1984, for summer 
programs to be held in 1985 and thereafter.  Section 8, 
subdivision 2, is effective May 1, 1985. 

                                ARTICLE 3

                            SPECIAL EDUCATION
    Section 1.  Minnesota Statutes 1983 Supplement, section 
120.17, subdivision 3b, is amended to read: 
    Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
utilize at least the following procedures for decisions 
involving identification, assessment and educational placement 
of handicapped children: 
     (a) Parents and guardians shall receive prior written 
notice of:  
     (1) any proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
     (2) a proposed placement of their child in, transfer from 
or to, or denial of placement in a special education program; or 
     (3) the proposed provision, addition, denial or removal of 
special education services for their child; 
     (b) The district shall not proceed with the initial formal 
assessment of a child, the initial placement of a child in a 
special education program or the initial provision of special 
education services for a child without the prior written consent 
of the child's parent or guardian.  The refusal of a parent or 
guardian to consent may be overridden by the decision in a 
hearing held pursuant to clause (d) at the district's initiative 
after at least one attempt to obtain this consent through a 
conciliation conference held pursuant to clause (c); 
     (c) Parents and guardians shall have an opportunity to meet 
with appropriate district staff in at least one conciliation 
conference if they object to any proposal of which they are 
notified pursuant to clause (a); 
     (d) Parents, guardians and the district shall have an 
opportunity to obtain an impartial due process hearing initiated 
and conducted in the school district where the child resides, if 
after at least one conciliation conference the parent or 
guardian continues to object to:  
     (1) a proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
     (2) the proposed placement of their child in, or transfer 
of their child to a special education program; 
     (3) the proposed denial of placement of their child in a 
special education program or the transfer of their child from a 
special education program; 
     (4) the proposed provision or addition of special education 
services for their child; or 
     (5) the proposed denial or removal of special education 
services for their child. 
     At least five calendar days before the hearing, the 
objecting party shall provide the other party with a brief 
written statement of the objection and the reasons for the 
objection.  
      The hearing shall take place before an impartial hearing 
officer mutually agreed to by the school board and the parent or 
guardian.  If the school board and the parent or guardian are 
unable to agree on a hearing officer, the school board shall 
request the commissioner to appoint a hearing officer.  The 
hearing officer shall not be a school board member or employee 
of the school district where the child resides or of the child's 
school district of residence, an employee of any other public 
agency involved in the education or care of the child, or any 
person with a personal or professional interest which would 
conflict with his objectivity at the hearing.  A person who 
otherwise qualifies as a hearing officer is not an employee of 
the district solely because the person is paid by the district 
to serve as a hearing officer.  If the hearing officer requests 
an independent educational assessment of a child, the cost of 
the assessment shall be at district expense.  The proceedings 
shall be recorded and preserved, at the expense of the school 
district, pending ultimate disposition of the action. 
    (e) The decision of the hearing officer pursuant to clause 
(d) shall be rendered not more than 45 calendar days from the 
date of the receipt of the request for the hearing.  A hearing 
officer may grant specific extensions of time beyond the 45-day 
period at the request of either party.  The decision of the 
hearing officer shall be binding on all parties unless appealed 
to the commissioner hearing review officer by the parent, 
guardian, or the school board of the district where the child 
resides pursuant to clause (f). 
    The local decision shall: 
    (1) be in writing; 
    (2) state the controlling facts upon which the decision is 
made in sufficient detail to apprise the parties and the 
commissioner hearing review officer of the basis and reason for 
the decision; 
    (3) state whether the special education program or special 
education services appropriate to the child's needs can be 
reasonably provided within the resources available to the 
responsible district or districts; 
    (4) state the amount and source of any additional district 
expenditure necessary to implement the decision; and 
    (5) be based on the standards set forth in subdivision 3a 
and the rules of the state board. 
    (f) Any local decision issued pursuant to clauses (d) and 
(e) may be appealed to the commissioner hearing review officer 
within 15 calendar days of receipt of that written decision, by 
the parent, guardian, or the school board of the district where 
the child resides. 
    If the decision is appealed, a written transcript of the 
hearing shall be made by the school district and shall be 
accessible to the parties involved within five calendar days of 
the filing of the appeal.  The commissioner hearing review 
officer shall issue a final decision based on an impartial 
review of the local decision and the entire record within 30 
calendar days after the filing of the appeal.  The commissioner 
hearing review officer shall seek additional evidence if 
necessary and may afford the parties an opportunity for written 
or oral argument; provided any hearing held to seek additional 
evidence shall be an impartial due process hearing but shall be 
deemed not to be a contested case hearing for purposes of 
chapter 14.  The commissioner hearing review officer may grant 
specific extensions of time beyond the 30-day period at the 
request of any party. 
    The final decision shall: 
    (1) be in writing; 
    (2) include findings and conclusions; and 
    (3) be based upon the standards set forth in subdivision 3a 
and in the rules of the state board. 
    (g) The decision of the commissioner hearing review officer 
shall be final unless appealed by the parent or guardian or 
school board to the court of appeals.  The judicial review shall 
be in accordance with chapter 14.  
     (h) The commissioner of education, having delegated general 
supervision of special education to the appropriate staff, shall 
be the hearing review officer except for appeals in which: 
    (1) the commissioner has a personal interest in or specific 
involvement with the student who is a party to the hearing;  
    (2) the commissioner has been employed as an administrator 
by the district that is a party to the hearing;  
    (3) the commissioner has been involved in the selection of 
the administrators of the district that is a party to the 
hearing;  
    (4) the commissioner has a personal, economic, or 
professional interest in the outcome of the hearing other than 
the proper administration of the federal and state laws, rules, 
and policies;  
    (5) the appeal challenges a state or local policy which was 
developed with substantial involvement of the commissioner; or 
    (6) the appeal challenges the actions of a department 
employee or official.  
    For any appeal to which the above exceptions apply, the 
state board of education shall name an impartial and competent 
hearing review officer.  
    In all appeals, the parent or guardian of the handicapped 
student or the district that is a party to the hearing may 
challenge the impartiality or competence of the proposed hearing 
review officer by applying to the state board of education.  
    (h) (i) Pending the completion of proceedings pursuant to 
this subdivision, unless the district and the parent or guardian 
of the child agree otherwise, the child shall remain in his 
current educational placement and shall not be denied initial 
admission to school. 
    (i) (j) The child's school district of residence, if 
different from the district where the child actually resides, 
shall receive notice of and may be a party to any hearings or 
appeals pursuant to this subdivision. 
    Sec. 2.  [REPEALER.] 
    Minnesota Statutes 1982, section 124.32, subdivisions 1a, 
1e, and 2a; and Minnesota Statutes 1983 Supplement, section 
124.32, subdivision 5a, are repealed. 

                                ARTICLE 4

                          COMMUNITY EDUCATION 
    Section 1.  [121.882] [EARLY CHILDHOOD AND FAMILY EDUCATION 
PROGRAMS.] 
    Subdivision 1.  [ESTABLISHMENT.] A district that provides a 
community education program may establish an early childhood and 
family education program.  Two or more districts, each of which 
provides a community education program, may cooperate to jointly 
provide an early childhood and family education program.  
    Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood and 
family education programs are programs for children in the 
period of life from birth to kindergarten and for the parents of 
such children.  The programs may include the following:  
    (1) programs to educate parents about the physical, mental, 
and emotional development of children;  
    (2) programs to enhance the skills of parents in providing 
for their children's learning and development;  
    (3) learning experiences for children and parents;  
    (4) activities designed to detect children's physical, 
mental, emotional, or behavioral problems that may cause 
learning problems;  
    (5) educational materials which may be borrowed for home 
use;  
    (6) information on related community resources; or 
    (7) other programs or activities.  
    The programs shall not include activities for children that 
do not require substantial involvement of the children's parents.
    Subd. 3.  [SEPARATE ACCOUNTS.] The district shall maintain 
a separate account within the community education fund for money 
for early childhood and family education programs.  
    Subd. 4.  [PARTICIPANTS' FEES.] A district may charge a 
reasonable fee but it shall waive the fee for a participant 
unable to pay.  
    Subd. 5.  [ADDITIONAL FUNDING.] A district may receive 
funds from any governmental agency or private source.  
    Subd. 6.  [COORDINATION.] A district is encouraged to 
coordinate the program with its special education and vocational 
education programs and with related services provided by other 
governmental agencies and nonprofit agencies.  
    Subd. 7.  [DISTRICT ADVISORY COUNCILS.] The school board 
shall appoint an advisory council from the area in which the 
program is provided.  A majority of the council shall be parents 
participating in the program.  The council shall assist the 
board in developing, planning, and monitoring the early 
childhood and family education program.  The council shall 
report to the school board and the community education advisory 
council.  
    Subd. 8.  [TEACHERS.] A school board shall employ necessary 
qualified teachers for its early childhood and family education 
programs.  
    Subd. 9.  [ASSISTANCE.] The department of education shall 
provide assistance to districts with programs described in this 
section.  
    Subd. 10.  [RULES.] The state board of education may adopt 
rules about program facilities, staff, services, and procedures. 
    Sec. 2.  Minnesota Statutes 1983 Supplement, section 
124.271, subdivision 2b, is amended to read: 
    Subd. 2b.  [AID; 1985 AND AFTER.] (1) In fiscal year 1985 
and Each fiscal year thereafter, each a district which is 
operating a community education program in compliance with rules 
promulgated by the state board shall receive community education 
aid in.  For fiscal year 1985, the aid shall be 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.  
    For fiscal year 1986 and each fiscal year thereafter, the 
aid shall be 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) $5.25 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) (1), 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) 
(1), to its maximum permissible levy under section 275.125, 
subdivision 8, clause (4) (1).  For purposes of computing the 
aid reduction pursuant to this clause, the amount certified 
pursuant to section 275.125, subdivision 8, clause (4) (1), 
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. 3.  [124.2711] [EARLY CHILDHOOD AND FAMILY EDUCATION 
AID.] 
    Subdivision 1.  [DEFINITION OF MAXIMUM REVENUE.] Beginning 
for fiscal year 1986 and each year thereafter the "maximum 
revenue" for early childhood and family education programs for a 
school year means the amount of revenue equal to the product of 
five percent of the foundation aid formula allowance for the 
current school year, times the greater of (a) 150, or (b) the 
number of people under five years of age residing in the 
district on September 1 of the preceding school year.  
    Subd. 2.  [POPULATION.] For the purposes of subdivision 1, 
data reported to the department of education according to the 
provisions of section 120.095 may be used to determine the 
number of people under five years of age residing in the 
district.  The commissioner, with the assistance of the state 
demographer, shall review the number reported by any district 
operating an early childhood and family education program.  If 
requested, the district shall submit to the commissioner an 
explanation of its methods and other information necessary to 
document accuracy.  If the commissioner determines that the 
district has not provided sufficient documentation of accuracy, 
the commissioner may request the state demographer to prepare an 
estimate of the number of people under five years of age 
residing in the district and may use this estimate for the 
purposes of subdivision 1.  
    Subd. 3.  [AID.] In fiscal year 1986 and thereafter, if a 
district complies with the provisions of section 1 of this 
article, it shall receive early childhood and family education 
aid equal to:  
    (a) the difference between the maximum revenue, according 
to subdivision 1, and the permitted levy attributable to the 
same school year, according to section 275.125, subdivision 8b, 
times 
    (b) the ratio of the district's actual levy to its 
permitted levy attributable to the same school year, according 
to section 275.125, subdivision 8b.  
    Subd. 4.  [USE OF REVENUE RESTRICTED.] The proceeds of the 
aid authorized by this section and the levy authorized by 
section 275.125, subdivision 8b, shall be used only for early 
childhood and family education programs.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
125.032, subdivision 2, is amended to read: 
    Subd. 2.  [EXCEPTIONS.] A person who teaches in a community 
education program which qualifies for aid pursuant to section 
124.26 shall continue to meet licensure requirements as a 
teacher.  A person who teaches in an early childhood and family 
education program which is offered through a community education 
program and which qualifies for per capita aid pursuant to 
section 124.271 or early childhood and family education aid 
pursuant to section 3 of this article 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. 5.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 8, is amended to read: 
    Subd. 8.  [COMMUNITY EDUCATION LEVY.] (1) Except as 
provided in clauses (2) and (3), in 1982 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 $4.75 per capita for districts which will 
qualify for aid in fiscal year 1984 equal to 25 cents per capita 
pursuant to section 124.271, subdivision 2a, clause (1)(b).  
    (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 (1).  
    (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 $5.25 times the population of the district, or 
    (b) $7,000.  
    (5) (2) In addition to the levy authorized in clause (4) 
(1), 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 
for fiscal year 1985 from community education aid under section 
124.271, subdivision 2a 2b, clause (1), and 
    (ii) the community education levy authorized in clause (4) 
(1) 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) (3) In 1984 and each year thereafter, in addition to 
the levy authorized in clause (4) (1), a district may levy an 
amount equal to the amount the district was entitled to levy 
pursuant to clause (5) (2) in 1983.  
    (7) (4) 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 and 129B.06 to 
129B.09, and section 1 of this article.  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. 
    (8) (5) 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. 6.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 8b.  [EARLY CHILDHOOD AND FAMILY EDUCATION LEVY.] A 
district may levy for its early childhood and family education 
program.  The amount levied shall not exceed the lesser of:  
    (a) .4 mill times the adjusted assessed valuation of the 
district for the year preceding the year the levy is certified, 
or 
    (b) the maximum revenue as defined in section 3 of this 
article, subdivision 1, for the school year for which the levy 
is attributable.  
    Sec. 7.  Laws 1983, chapter 314, article 9, section 14, 
subdivision 3, is amended to read: 
    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; if any district's aid is 
reduced because of this limitation, the amount of the reduction 
shall be prorated among the districts not subject to this 
limitation. 
    Sec. 8.  [EARLY CHILDHOOD AND FAMILY EDUCATION AID FOR 
FISCAL YEAR 1985.] 
    Each district that provided an early childhood and family 
education program funded by the council on quality education 
during the 1982-1983 school year is entitled to receive aid in 
fiscal year 1985 to continue the program.  The aid shall be in 
addition to community education aid.  The aid shall equal (a) 
$11,000, minus (b) the amount of aid received pursuant to 
Minnesota Statutes 1983 Supplement, section 124.271, subdivision 
2b, clause (3).  However, a district that has not established a 
community education program shall receive no aid under this 
section.  
    Sec. 9.  [REPEALER.] 
    Minnesota Statutes 1982, sections 129B.06; 129B.07; 
129B.08; and 129B.09, as amended by Laws 1983, chapters 260, 
section 29, and 314, articles 6, section 33, and 9, sections 8 
and 9, are repealed.  
    Sec. 10.  [APPROPRIATION; EARLY CHILDHOOD AND FAMILY 
EDUCATION.] 
    There is appropriated from the general fund to the 
department of education for fiscal year 1985 the sum of 
$116,500.  Of this sum $101,500 is for aid to districts for 
fiscal year 1985 according to section 8 of this article.  The 
aid shall be paid at 100 percent of the entitlement for fiscal 
year 1985.  The remaining $15,000 is for the department of 
education for personnel service contracts to provide assistance 
to districts.  
    Sec. 11.  [EFFECTIVE DATE.] 
    Section 4 is effective the day following final enactment. 
Sections 1, 3, and 9 are effective July 1, 1985. 

                                ARTICLE 5
 VOCATIONAL EDUCATION
    Section 1.  Minnesota Statutes 1982, section 120.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] (1) Elementary school means any 
school with building, equipment, courses of study, class 
schedules, enrollment of pupils ordinarily in grades one through 
six or any portion thereof and staff meeting the standards 
established by the state board of education. 
    (a) The state board of education shall not close a school 
or deny any state aids to a district for its elementary schools 
because of enrollment limitations classified in accordance with 
the provisions of subdivision 2, clause (1). 
    (2) Middle school means any school other than a secondary 
school giving an approved course of study in a minimum of three 
consecutive grades above fourth but below tenth with building, 
equipment, courses of study, class schedules, enrollment and 
staff meeting the standards established by the state board of 
education. 
    (3) Secondary school means any school with building, 
equipment, courses of study, class schedules, enrollment of 
pupils ordinarily in grades seven through twelve or any portion 
thereof and staff meeting the standards established by the state 
board of education. 
    (4) A vocational center school is one serving a group of 
secondary schools with approved areas of secondary vocational 
training and offering vocational secondary and adult programs 
necessary to meet local needs and meeting standards established 
by the state board of education. 
    (5) An area vocational-technical vocational technical 
school is a school organized according to section 121.21, and 
operated according to the standards established by the state 
board of vocational technical education. 
     Sec. 2.  Minnesota Statutes 1982, section 120.06, is 
amended to read: 
    120.06 [ADMISSION TO PUBLIC SCHOOL.] 
    Subdivision 1.  [AGE LIMITATIONS; PUPILS.] All schools 
supported in whole or in part by state funds are public schools. 
Admission to a public school, except an area vocational 
technical institute, is free to any person who resides within 
the district which operates the school, who is under 21 years of 
age, and who satisfies the minimum age requirements imposed by 
this section.  Notwithstanding the provisions of any law to the 
contrary, the conduct of all students under 21 years of age 
attending a public secondary school shall be governed by a 
single set of reasonable rules and regulations promulgated by 
the local board of education.  No person shall be admitted to 
any public school after September 1, 1971, (1) as a kindergarten 
student, unless he is at least five years of age on September 1 
of the calendar year in which the school year for which he seeks 
admission commences; or (2) as a first grade student, unless he 
is at least six years of age on September 1 of the calendar year 
in which the school year for which he seeks admission commences 
or has completed kindergarten; except that any school board may 
establish a policy for admission of selected pupils at an 
earlier age.  
     Sec. 3.  Minnesota Statutes 1982, section 121.09, is 
amended to read: 
    121.09 [ADMINISTRATION; EXCEPTIONS.] 
    The commissioner shall administer all laws and rules 
promulgated by the board relating to libraries and other public 
educational institutions, except such laws as may relate to the 
University of Minnesota and to the, state universities and, 
community colleges, and area vocational technical institutes. 
    Sec. 4.  Minnesota Statutes 1982, section 121.21, is 
amended to read: 
    121.21 [AREA VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL 
SCHOOLS.] 
    Subdivision 1.  The board of any independent or special 
district may petition the state board of vocational technical 
education to classify one or more of its schools as an area 
vocational-technical vocational technical school. 
    Subd. 2.  Upon receipt of such petition, the state board 
shall examine the petition and any supporting evidence which it 
may require.  The state board shall conduct hearings, and may 
investigate school records and such other facts relating to 
vocational-technical vocational technical training as it may 
deem appropriate. 
    Subd. 3.  It is the purpose of this section to more nearly 
equalize the educational opportunities in certain phases of 
vocational-technical vocational technical education to persons 
of the state who are of the age and maturity to profitably 
pursue training for a specific occupation.  If the state board 
finds, as a result of its inquiry, that the establishment of an 
area vocational-technical vocational technical school, according 
to the petition, would further the educational interests of all 
the people of the state, and is in accordance with the plans and 
program of the state department for the vocational and technical 
education of the people, it may approve the petition. 
    Subd. 4.  If the petition is approved, the school shall be 
established by the district and classified by the state board as 
an area vocational-technical vocational technical school and 
conducted under the general supervision of the state board in 
accordance with the policy and rules and regulations of the 
state board.  Notwithstanding the provisions of subdivision 3 
and of this subdivision, after June 30, 1975 no area 
vocational-technical vocational technical school shall be 
established unless specific legislation has authorized its 
establishment. 
    Subd. 4a.  No district shall expend funds from any source 
for the acquisition or betterment of lands or buildings or for 
capital improvements needed for an area vocational-technical 
vocational technical school without the approval of the state 
board and authorization by specific legislative act if that 
acquisition, betterment or capital improvement requires the 
expenditure of $250,000 or more, or adds more than 1,000 gross 
square feet to a post-secondary vocational facility, or requires 
the issuance of school district bonds.  No acquisition or 
betterment of lands or buildings or capital improvement which 
requires the expenditure of $50,000 or more but less than 
$250,000 or which changes the perimeter walls of an existing 
facility shall be carried out without the approval of the state 
board.  No acquisition or betterment of lands or buildings or 
capital improvement which requires the expenditure of less than 
$50,000, which does not change a perimeter wall and which does 
not require the issuance of school district bonds, shall be 
carried out without the approval of the commissioner state 
director of vocational technical education.  As used in this 
subdivision, the terms "acquisition" and "betterment", as 
applied to lands and buildings, and "capital improvement" shall 
have the meanings ascribed to them in chapter 475, but shall not 
include the acquisition or betterment of machinery or equipment. 
    Subd. 6.  The state board for vocational education shall 
promulgate, pursuant to chapter 14, such rules governing the 
operation and maintenance of schools so classified as will 
afford the people of the state an equal opportunity to acquire 
public vocational and technical education.  Rules relating to 
post-secondary vocational-technical education shall not 
incorporate the provisions of the state plan for vocational 
education by reference.  
    The rules shall provide for, but are not limited to, the 
following:  
    (a) The area to be served by each school, which may include 
one or more districts or parts thereof;  
    (b) Curriculum and standards of instruction and scholarship;
    (c) Attendance requirements and Minnesota non-resident 
attendance;  
    (d) The distribution and apportionment to the local 
districts of all funds, whether state or federal or other funds, 
which may be made available to the state board for vocational 
education for carrying out the purposes of post-secondary 
vocational-technical education in accordance with law; and 
    (e) General administrative matters.  
    Subd. 8.  Any property of the state administered by the 
state board for vocational education in connection with teaching 
vocational education may be apportioned and distributed by the 
state board for vocational education to local school districts 
desiring to avail themselves of the benefits of this section. 
    Subd. 11.  The state board for vocational education may 
contract for hospital benefits and medical benefits coverage for 
students in the same manner as authorized by section 43A.23 for 
state employees.  
    Sec. 5.  Minnesota Statutes 1982, section 121.212, 
subdivision 1, is amended to read: 
    Subdivision 1.  Any school board or joint school board 
operating an area vocational-technical vocational technical 
school, pursuant to section 121.21 136C.07; Laws 1967, Chapter 
822, as amended; Laws 1969, Chapter 775, as amended; or Laws 
1969, Chapter 1060, as amended, may make, adopt and enforce 
rules, regulations or ordinances for the regulation of traffic 
and parking in parking facilities and on private roads and 
roadways situated on property owned, leased, occupied or 
operated by the board. 
    Sec. 6.  Minnesota Statutes 1982, section 121.213, is 
amended to read: 
    121.213 [AREA VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL 
INSTITUTES AND COMMUNITY COLLEGES; LEGAL COUNSELING AND SERVICE 
PROGRAMS.] 
    Notwithstanding the provisions of sections 8.06 and 136.11 
or any rules or regulations adopted pursuant thereto, an area 
vocational-technical vocational technical institute or community 
college student association governing student activities on 
campus may expend money for the purpose of funding a program to 
provide legal counseling and services for students.  The money 
to be expended shall be from that portion of the area 
vocational-technical vocational technical institute student 
senate funds or community college activity fund account 
allocated to the student association and derived solely from 
fees received from students.  
    Sec. 7.  Minnesota Statutes 1982, section 121.214, is 
amended to read: 
    121.214 [VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL BUILDING 
FUND.] 
    Subdivision 1.  [PURPOSE.] A vocational-technical 
vocational technical building fund is created as a separate 
bookkeeping account in the general books of the state for the 
purpose of providing money appropriated to the state board of 
vocational technical education for the acquisition and 
betterment of public land, buildings, and capital improvements 
needed for the area vocational-technical vocational technical 
education program of the state. 
    Subd. 2.  [RECEIPTS.] The commissioner of finance and 
treasurer shall deposit in the fund as received all proceeds of 
vocational-technical vocational technical building bonds, except 
accrued interest and premiums received upon the sale thereof.  
All such receipts are annually appropriated for the permanent 
acquisition purposes of the fund, and shall be and remain 
available for expenditure in accordance with this section until 
the purposes of the appropriations have been accomplished or 
abandoned. 
    Subd. 3.  [DISBURSEMENTS.] Disbursements from the fund 
shall be made by the state treasurer upon the order of the 
commissioner of finance at the times and in the amounts 
requested by the state board of vocational technical education 
in accordance with the applicable appropriation acts, for grants 
to school districts for the acquisition and betterment of land, 
buildings, and capital improvements for area 
vocational-technical vocational technical institutes.  These 
grants shall only be made upon the conditions and in accordance 
with all standards and criteria established in by the state 
board rules and in the legislative act authorizing the specific 
post-secondary vocational facilities project. 
    Subd. 4.  The purpose of this section is to change the 
method of funding post-secondary vocational facilities from 
post-secondary vocational debt service aid pursuant to section 
124.564 to direct state appropriations from the 
vocational-technical building fund.  Eighty-five percent of the 
cost of post-secondary vocational facilities authorized by 
specific legislative act after January 1, 1979 shall be financed 
through appropriations from the vocational-technical vocational 
technical building fund and 15 percent of the cost of these 
facilities shall be financed by the school district operating 
the post-secondary vocational-technical vocational technical 
school.  No local bonds shall be authorized, issued, or sold, 
nor shall any election be held to authorize the issuance of 
bonds, if the proceeds will be used to finance a project for 
which specific legislative approval is required, until after 
that specific legislative approval has been given. 
    Sec. 8.  Minnesota Statutes 1982, section 121.215, is 
amended to read: 
    121.215 [VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL BUILDING 
BONDS.] 
    Subdivision 1.  [PURPOSE; APPROPRIATION.] For the purpose 
of providing money appropriated from the vocational-technical 
vocational technical building fund for the acquisition of public 
land, buildings, and capital improvements needed for the state 
plan for the administration of vocational education in 
accordance with the provisions of section 121.214 136C.42, when 
requested by the state board of education, the commissioner of 
finance shall sell and issue bonds of the state of Minnesota for 
the prompt and full payment of which, with interest thereon, the 
full faith and credit and taxing powers of the state are 
irrevocably pledged.  Bonds shall be issued pursuant to this 
section only as authorized by a law specifying the purpose 
thereof and the maximum amount of the proceeds authorized to be 
expended therefor, as set forth in section 121.214 136C.42.  Any 
such law, together with this section and the laws herein 
referred to, constitutes complete authority for the issue, and 
such bonds shall not be subject to restrictions or limitations 
contained in any other law.  
    Subd. 2.  [ISSUANCE.] The bonds shall be sold upon sealed 
bids and upon notice, at a price, in form and denominations, 
bearing interest at a rate or rates, maturing in amounts and on 
dates, subject to prepayment upon notice and at times and 
prices, payable at a bank or banks within or outside the state, 
with or without provisions for registration, conversion, 
exchange, and issuance of notes in anticipation of the sale or 
delivery of definitive bonds, and in accordance with further 
regulations, as the commissioner of finance shall determine 
subject to the approval of the attorney general, but not subject 
to the provisions of sections 14.02, 14.04 to 14.36, 14.38, 
14.44 to 14.45, and 14.57 to 14.62.  The bonds shall be executed 
by the commissioner of finance and attested by the state 
treasurer under their official seals.  The signatures on the 
bonds and on any interest coupons and the seals may be printed 
or otherwise reproduced, except that each bond shall be 
authenticated by the manual signature on its face of one of the 
officers or of a person authorized to sign on behalf of a bank 
designated by them as authenticating agent.  The commissioner of 
finance shall ascertain and certify to the purchasers of the 
bonds the performance and existence of all acts, conditions, and 
things necessary to make them valid and binding general 
obligations of the state of Minnesota, subject to the approval 
of the attorney general.  
    Subd. 3.  [EXPENSES.] All expenses incidental to the sale, 
printing, execution, and delivery of bonds pursuant to this 
section, including but not limited to actual and necessary 
travel and subsistence expenses of state officers and employees 
for such purposes, shall be paid from the vocational-technical 
vocational technical building fund and the amounts necessary 
therefor are appropriated from that fund; provided that if any 
amount is specifically appropriated for this purpose in an act 
authorizing the issuance of bonds pursuant to this section, such 
expenses shall be limited to the amount so appropriated.  
    Subd. 4.  [VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL 
BUILDING BOND ACCOUNT IN THE STATE BOND FUND.] The commissioner 
of finance shall maintain in the state bond fund a separate 
bookkeeping account designated as the vocational-technical 
vocational technical building bond account, to record receipts 
and disbursements of money transferred to the fund to pay 
vocational-technical vocational technical building bonds and 
interest thereon, and of income from the investment of such 
money, which income shall be credited to the account in each 
fiscal year in an amount equal to the approximate average rate 
of return that year on all funds invested by the state 
treasurer, as determined by the treasurer, times the average 
balance in the account that year.  
    Subd. 5.  [APPROPRIATIONS TO BOND ACCOUNT.] There shall be 
credited to the vocational-technical vocational technical 
building bond account the premium and accrued interest received 
on each issue of vocational-technical vocational technical 
building bonds and, from the general fund in the state treasury, 
on November 1 in each year, a sum of money equal to the amount 
of the tax which the Constitution would otherwise require to be 
levied for collection in the following year, for the purpose of 
increasing the balance then on hand in the account to an amount 
sufficient to pay principal and interest due and to become due 
with respect to vocational-technical vocational technical 
building bonds.  All money so credited and all income from the 
investment thereof is annually appropriated to the bond account 
for the payment of such bonds and interest thereon, and shall be 
available in the bond account prior to the levy of the tax for 
the state bond fund in any year as required by the 
Constitution.  The commissioner of finance and the state 
treasurer are directed to make the appropriate entries in the 
accounts of the respective funds.  
    Subd. 6.  [TAX LEVY.] On or before December 1 in each year, 
if the full amount appropriated to the bond account in 
subdivision 5 has not been credited thereto, the tax required by 
the Constitution shall be levied upon all taxable property 
within the state.  This tax shall be levied upon all real 
property used for the purposes of a homestead, as well as other 
taxable property, notwithstanding the provisions of section 
273.13, subdivisions 6 and 7, and shall be subject to no 
limitation of rate or amount until all vocational-technical 
vocational technical building bonds and interest thereon are 
fully paid.  The proceeds of this tax are appropriated and shall 
be credited to the state bond fund, and the principal of and 
interest on the bonds are payable from such proceeds, and the 
whole thereof, or so much as may be necessary, is appropriated 
for such payments.  If at any time there is not sufficient money 
from the proceeds of such taxes to pay the principal and 
interest when due on vocational-technical vocational technical 
building bonds, such principal and interest shall be paid out of 
the general fund in the state treasury, and the amount necessary 
therefor is hereby appropriated.  
    Sec. 9.  Minnesota Statutes 1982, section 121.2155, is 
amended to read: 
    121.2155 [VOCATIONAL-TECHNICAL VOCATIONAL TECHNICAL 
BUILDING APPROPRIATIONS.] 
    Money appropriated from the state building fund to the 
state board of vocational technical education for post-secondary 
vocational-technical vocational technical construction in school 
districts shall be used for grants to school districts for the 
acquisition and betterment of land, buildings, and capital 
improvements for area vocational-technical vocational technical 
institutes.  These grants shall only be made upon the conditions 
and in accordance with all standards and criteria established in 
state board rules and in the legislative act authorizing the 
specific post-secondary vocational facilities project.  A grant 
shall cover 85 percent of the cost of the post-secondary 
vocational facilities authorized by the specific legislative 
act, and 15 percent of the cost of these facilities shall be 
financed by the school district operating the post-secondary 
vocational-technical vocational technical school, unless 
otherwise provided by the specific legislative act.  No local 
bonds shall be authorized, issued, or sold, nor shall any 
election be held to authorize the issuance of bonds, if the 
proceeds will be used to finance a project for which specific 
legislative approval is required, until after that specific 
legislative approval has been given.  
    Sec. 10.  Minnesota Statutes 1982, section 121.216, is 
amended to read: 
    121.216 [VOCATIONAL-TECHNICAL INSTITUTES; STUDENT 
ASSOCIATIONS.] 
    Every school board governing an area vocational technical 
vocational technical institute shall give recognition as an 
authorized extracurricular activity to an area 
vocational-technical vocational technical institute student 
association affiliated with the Minnesota vocational-technical 
vocational technical student association.  The student 
association is authorized to collect a reasonable fee from 
students to finance the activities of the association in an 
amount determined by the governing board of the area 
vocational-technical vocational technical institute which has 
recognized it. 
    Every governing body which recognizes a student association 
shall deposit the fees in a student association fund.  The 
moneys in this fund shall be available for expenditure for 
student recreational, social, welfare, and educational pursuits 
supplemental to the regular curricular offerings. 
    Sec. 11.  Minnesota Statutes 1982, section 121.218, is 
amended to read: 
    121.218 [VOCATIONAL-TECHNICAL INSTITUTES; AWARDING 
DEGREES.] 
    Subdivision 1.  [BOARD APPROVAL.] The state board for 
vocational education may approve, disapprove, or modify a plan 
for awarding associate degrees at an area vocational-technical 
vocational technical institute.  The state board shall approve a 
plan only when an associate degree is required by a licensing 
authority and is offered in cooperation with a collegiate 
institution.  The state board may approve an area 
vocational-technical vocational technical institute plan for 
awarding an associate degree which is not offered in cooperation 
with a collegiate institution only if cooperation is not 
practicable.  All associate degree plans approved by the state 
board for vocational education shall be presented to the higher 
education coordinating board for review and recommendation 
pursuant to section 136A.04, subdivision 1, clause (d) and in 
accordance with the provisions of this section. 
    Subd. 2.  [EXCEPTION.] Associate degrees offered by the 
area vocational-technical vocational technical institutes prior 
to January 1, 1981, shall not be subject to the provisions of 
subdivision 1.  
    Subd. 3.  [REPORT.] By January 15, 1982, the higher 
education coordinating board, in cooperation with the state 
board for vocational education, shall submit a report to the 
education committees of the legislature regarding the awarding 
of associate degrees by area vocational-technical institutes. 
The report shall include identification and evaluation of the 
factors which affect the feasibility of cooperation with 
collegiate institutions.  By January 1, 1983, the higher 
education coordinating board shall promulgate rules establishing 
criteria for determining when cooperation with a collegiate 
institution is not practicable.  
    Sec. 12.  Minnesota Statutes 1983 Supplement, section 
124.5611, is amended to read: 
    124.5611 [AVTI FUNDING.] 
    Beginning with aids For the 1983-1984 and 1984-1985 school 
year years, post-secondary vocational aids for AVTI's shall be 
paid for the current fiscal year according to sections 124.5612 
136C.26 to 124.5619 136C.37, 124.5628 and 124.564 136C.41.  
    Sec. 13.  Minnesota Statutes 1983 Supplement, section 
124.5612, is amended to read: 
    124.5612 [AVTI AID DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] Beginning with aids For 
the 1983-1984 and 1984-1985 school year years, for the purposes 
of sections 124.5612 136C.26 to 124.5619 136C.37, 124.5628, 
124.564, and 124.565 136C.41, the following terms have the 
meanings given them.  
    Subd. 2.  [ADM.] "ADM" means average daily membership 
computed according to section 124.5618 136C.33.  
    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 of vocational 
technical 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 of 
vocational technical 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. 14.  Minnesota Statutes 1983 Supplement, section 
124.5614, is amended to read: 
    124.5614 [PROCESS FOR AID ALLOCATION.] 
    Subdivision 1.  [BUDGET SUBMISSION.] Before January 1, of 
each year 1984, 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 state director of vocational technical 
education shall recommend aid allocations for the following 
fiscal year in each expenditure category for each program and 
component activity.  
    The department state director 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 state director in 
recommending instructional aid allocations for the purposes 
listed in section 124.5615 136C.29, subdivision 3, clauses (a), 
(b), (c), and (d).  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 state director 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 state director 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 state director 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 state director 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 
state director 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. 15.  Minnesota Statutes 1983 Supplement, section 
124.5615, is amended to read: 
    124.5615 [USE OF AID.] 
    Subdivision 1.  [AID AND TUITION.] All AVTI aids and all 
tuition authorized by section 124.565 136C.13 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 136C.04, subdivision 6, 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 136C.07, 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 124.5612 
136C.26, subdivision 8.  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 state director.  The process in 
section 124.5614 136C.28 shall not constitute approval for this 
purpose.  Use of the aid shall be governed by the provisions of 
section 121.21 136C.07, subdivision 4a. 
    Sec. 16.  Minnesota Statutes 1983 Supplement, section 
124.5616, is amended to read: 
    124.5616 [DISTRIBUTION OF MONEY.] 
    All money, whether state, federal, or from other sources, 
which may be made available to the department of education state 
board 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. 17.  Minnesota Statutes 1983 Supplement, section 
124.5617, is amended to read: 
    124.5617 [CERTAIN EQUIPMENT EXPENDITURES.] 
    Expenditures for the purposes in section 124.5615 136C.29, 
subdivision 3, clauses (a), (b), (c), and (d) which exceed 
$6,000 shall receive prior approval by the commissioner of 
education state director.  The process in section 124.5614 
136C.28 shall not constitute approval for this purpose. 
    Sec. 18.  Minnesota Statutes 1983 Supplement, section 
124.5618, is amended to read:  
    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 state director.  
     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 124.5619 136C.34 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. 19.  Minnesota Statutes 1982, section 124.564, is 
amended to read: 
    124.564 [POST-SECONDARY VOCATIONAL DEBT SERVICE AID.] 
    Subdivision 1.  The state board for vocational education 
shall provide, for credit against the debt service levy of 
qualifying districts, post-secondary vocational debt service aid 
equal to the state portion of debt service costs.  The state 
portion of debt service costs shall equal the amount necessary 
to make payments due in each school year ending June 30 with 
respect to qualifying bonds issued to finance post-secondary 
vocational facilities and interest thereon, multiplied by the 
average of the district's nonresident reimbursement percentage 
pursuant to Minnesota Statutes 1974, Section 121.21, Subdivision 
5, in fiscal years ended June 30, 1973, 1974, and 1975.  For 
purposes of the computation of debt service aid, qualifying 
bonds shall include only: 
    (a) bonds issued prior to January 1, 1978; 
    (b) bonds issued after January 1, 1978, to finance 
post-secondary vocational facilities projects which receive 
funds appropriated in Laws 1978, Chapter 792, Section 8; and 
    (c) bonds issued at any time to refund the bonds described 
in (a) and (b).  No district shall qualify for this 
post-secondary vocational debt service aid unless it has 
certified a levy in the total amount required by section 475.61, 
for collection in the calendar year in which the aid credit is 
to be given. 
    Subd. 2.  There shall be no post-secondary vocational debt 
service aid for the state portion of debt service costs for 
bonds issued on or after January 1, 1978 to finance 
post-secondary vocational facilities and interest thereon, 
unless these bonds are issued to finance post-secondary 
vocational facilities projects which receive funds appropriated 
in Laws 1978, Chapter 792, Section 8. 
    Subd. 3.  Post-secondary vocational debt service aid shall 
be computed each year before October 1 by the state board for 
vocational education as the percentage specified in subdivision 
1 of the sum of the principal and interest on qualifying bonds 
which will become due in the school year commencing on the 
following July 1. 
    Subd. 4.  The amount for each school district shall be 
certified by the board on or before October 1 to the school 
district, and to the county auditors of all counties containing 
taxable property within the school district, and to the state 
commissioner of finance.  This amount shall be deducted by the 
county auditors from the amount of the debt service levies of 
the school district to be assessed and extended against the 
taxable property therein for collection in the following year, 
and shall be payable instead from the appropriation made by this 
section. 
    Subd. 5.  The commissioner of finance shall issue to the 
state treasurer warrants for payment of one-half of the amount 
to the treasurer of the school district on or before July 15 and 
one-half thereof on or before November 15 in the following year, 
in lieu of the distributions of this amount otherwise payable by 
county treasurers at these times under the provisions of section 
276.11. 
    Subd. 6.  The amount necessary is annually appropriated 
from the general fund to the respective districts entitled to 
these payments for expenditure in fiscal years beginning with 
fiscal year 1978.  This appropriation shall not lapse until and 
unless otherwise provided by law, but shall be reduced by the 
amount of any funds specifically appropriated for the same 
purpose in any year from any state fund.  In the event that the 
appropriation is revoked in any future year, the state board for 
vocational education shall certify this fact to each school 
district theretofore entitled to an aid credit under this 
subdivision. 
    Subd. 7.  The appropriation heretofore made for 
post-secondary vocational debt service aid payable in the school 
year ending June 30, 1977, is confirmed, and the board shall 
continue to provide for the payment of debt service aids 
therefrom at or before the due dates of school district bonds 
and interest in that school year.  In addition, the state board 
for vocational education shall pay to districts which expended 
cash balances to finance the construction of new post-secondary 
vocational facilities and which the state board prior to May 15, 
1975 agreed to repay for these expenditures the amount of the 
repayment specified in the agreement.  Funds received in 
repayment shall revert to the fund of origin in the district. 
    Sec. 20.  Minnesota Statutes 1982, section 124.565, 
subdivision 1, is amended to read: 
    124.565 [POST-SECONDARY VOCATIONAL EDUCATION TUITION.] 
    Subdivision 1.  Any Minnesota resident may attend a 
post-secondary vocational-technical vocational technical school, 
provided that if the individual meets the entrance requirements 
for the training course in which enrollment is sought and the 
school has the room and the facility to receive him available 
space. 
    Sec. 21.  Minnesota Statutes 1982, section 124.565, 
subdivision 6, is amended to read: 
    Subd 6.  [LENGTH OF QUARTER.] For purposes of tuition 
charges, a quarter shall consist of 60 school days.  The state 
board for vocational education shall adopt rules providing for 
establish proportionate tuition charges for quarters which are 
shorter or longer than 60 days, for part time and extended day 
enrollment, and for programs which begin or end during a 
quarter.  The state board shall adopt rules providing for 
establish tuition charges based on approved program lengths for 
programs offered on an individualized basis. 
    Sec. 22.  Minnesota Statutes 1982, section 124.565, 
subdivision 7, is amended to read: 
    Subd. 7.  [VETERAN'S EXEMPTION.] A veteran who is a 
Minnesota resident shall be whose entire education has not 
included completion of at least one tuition free post-secondary 
vocational technical school program is exempt from the tuition 
required by subdivision 3 until the veteran has completed the 
lesser of (a) 440 post-secondary vocational-technical vocational 
technical school days, or the equivalent as determined by the 
state board for vocational education, or (b) one post-secondary 
vocational-technical vocational technical school program. 
    "Veteran" for the purpose of this subdivision means a 
person who served in the active military service in any branch 
of the armed forces of the United States after July 1, 1961 and 
before July 1, 1978, was a Minnesota resident at the time of 
induction into the armed forces and for the six months 
immediately preceding induction, and has been separated or 
discharged from active military service under conditions other 
than dishonorable.  
    Sec. 23.  Minnesota Statutes 1982, section 124.572, as 
amended by Laws 1983, chapter 314, article 5, section 12, is 
amended to read: 
    124.572 [CURRENT FUNDING FOR ADULT VOCATIONAL EDUCATION.] 
    Subdivision 1.  The state shall pay adult vocational aids 
for each year on a current funding basis. 
    Subd. 1a.  [LIMITED APPLICABILITY.] The provisions of this 
section shall apply only for the 1983-1984 and 1984-1985 school 
years.  
    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 state director 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. 
    Subd. 2a.  [1982-1983 ADULT VOCATIONAL AID.] The aid for 
the 1982-1983 school year shall be paid according to subdivision 
2, except that the state shall pay 69 percent of salaries and 
46.25 percent of necessary travel.  
    Subd. 3.  This aid shall be paid only for services rendered 
or for travel costs incurred in adult vocational education 
programs approved for funding by the commissioner of education 
state director.  Rules Policy shall be adopted established by 
the state board providing criteria to be applied by the 
commissioner state director in approving programs for funding 
pursuant to this section including:  economic impact of the 
program, legislative mandate for the program, employment 
opportunities in the occupational area, and proven contribution 
of the program.  All programs shall be operated in accordance 
with policies and rules promulgated by the state board.  These 
rules shall provide minimum student-staff ratios required for an 
adult vocational education program to qualify for this aid.  
Rules relating to adult vocational education programs shall not 
incorporate the provisions of the state plan for vocational 
education by reference.  
    Subd. 3a.  In any fiscal year when moneys requested for 
programs approved for funding are more than the amount 
appropriated, the commissioner of education state director 
shall, to the extent possible, continue full funding for 
programs which are approved by July 1 for aid for even numbered 
years or by the preceding March 1 for aid for odd numbered 
years.  The commissioner state director shall prorate any 
remaining moneys among programs which are approved for funding 
after these dates.  
    Subd. 4.  Boards may charge tuition for participation in 
adult vocational education programs.  Nothing in this section 
shall prohibit the charging of differential tuition rates for 
residents or nonresidents of a district.  If adult vocational 
education is provided by another district or a cooperative 
center by contract pursuant to subdivision 5, the contract shall 
provide for this issue. 
    Subd. 5.  Any board may contract with the board of a 
district containing a post-secondary vocational-technical school 
or the board of a cooperative center for the provision of adult 
vocational education services.  The board providing these 
services may also act as fiscal agent for the other contracting 
district if so agreed.  Information copies of all contracts 
shall be provided to the state department director. 
    Subd. 6.  All adult vocational education aid shall be paid 
to the district or cooperative center providing the services.  
The district providing the services may bill the contracting 
district for any unpaid costs incurred in providing these 
services if so agreed in the contract. 
    Subd. 7.  Each district providing adult vocational 
education shall establish and maintain separate, accurate and 
detailed revenue and expenditure accounts related to these adult 
vocational education programs.  All adult vocational education 
aid received by the district from any source shall be utilized 
solely for the purposes of adult vocational education programs. 
    Subd. 8.  [PAYMENT SCHEDULE THROUGH 1982.] Through the 
1981-1982 school year, the state shall pay to each school 
district 30 percent of its estimated adult vocational education 
aid for the school year on or before the following dates:  
August 31, December 31 and March 31.  The final aid distribution 
to the district shall be made on or before October 31 of the 
following school year.  All adult vocational education aids 
shall be computed and distributed by the state aids, statistics, 
and research section of the state department of education. 
    Subd. 8a.  [PAYMENT SCHEDULE.] Beginning in the 1982-1983 
school year, The state shall pay to each school district its 
estimated adult vocational education aid in the following 
manner:  30 percent by August 31, 30 percent by December 31, and 
25 percent by March 31.  The final aid distribution shall be 
made by October 31 of the following school year.  All adult 
vocational education aids shall be computed and distributed by 
the state aids section of the department of education.  
    Subd. 9.  Effective July 1, 1978, any individual enrolled 
in an adult farm management program for longer than six years 
shall be charged a tuition rate equal to the full cost of the 
program attributable to that individual. 
    Subd. 10.  State money shall not be used to pay for more 
than 75 percent of the independent telephone communications 
training program and the Minnesota electric cooperative 
linepersons training program.  The appropriate industry or 
association shall pay at least 25 percent of the cost of each 
program. 
    Sec. 24.  Minnesota Statutes 1982, section 124.573, 
subdivision 3, is amended to read: 
    Subd. 3.  This aid shall be paid only for services rendered 
or for the costs designated in subdivision 2 which are incurred 
in secondary vocational education programs approved by the state 
department of education and operated in accordance with rules 
promulgated by the state board of education. These rules shall 
provide minimum student-staff ratios required for a secondary 
vocational education program in a cooperative center to qualify 
for this aid, but.  The rules shall not require any minimum 
number of program offerings or administrative staff, any minimum 
period of coordination time or extended employment for secondary 
vocational education personnel, or the availability of 
vocational student activities or organizations for a secondary 
vocational education program to qualify for this aid.  The 
requirement in these rules that program components be available 
for a minimum number of hours shall not be construed to prevent 
pupils from enrolling in secondary vocational education courses 
on an exploratory basis for less than a full school year.  No 
rules promulgated by the state board pursuant to any statute 
shall require a district to offer secondary vocational 
education.  The state board of education shall not require a 
school district to offer more than four credits or 560 hours of 
vocational education course offerings in any school year.  Rules 
relating to secondary vocational education programs shall not 
incorporate the provisions of the state plan for vocational 
education by reference.  This aid shall be paid only for 
services rendered and for travel costs incurred by essential, 
licensed personnel who meet the work experience requirements for 
licensure pursuant to the rules of the state board for 
vocational of education. 
    Sec. 25.  Minnesota Statutes 1982, section 136A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  There is hereby created a higher education 
advisory council, the membership of which shall include the 
president of the University of Minnesota, the chancellor of the 
state university board, the chancellor of the state board for 
community colleges, the state director of vocational technical 
education, the commissioner of education, the executive director 
of the Minnesota private college council, and a representative 
from the Minnesota association of private post-secondary 
schools.  The advisory council shall (1) bring to the attention 
of the board any matters which the council deems as needing 
attention of the board, (2) make recommendations to the board as 
the council deems appropriate, (3) review and comment upon 
proposals and other matters before the board, and (4) provide 
any reasonable assistance to the board in its effort to fulfill 
responsibilities of the board.  The board shall periodically 
inform the council of all matters under consideration by the 
board and shall refer all proposals to the council prior to 
transmitting such proposals as recommendations to the governor 
and the legislature.  The board shall provide time for a report 
from the advisory council at each meeting of the board. 
    The higher education advisory council shall report to the 
board quarterly and at such other times as the council may deem 
desirable.  The council shall determine its meeting times, but 
the council shall also meet within 30 days following a request 
for a council meeting by the executive director of the board.  
    Sec. 26.  Minnesota Statutes 1983 Supplement, section 
136C.01, is amended to read: 
    136C.01 [ESTABLISHMENT.] 
    A state board of vocational technical education is 
established to govern post-secondary and adult vocational 
education.  It shall also govern adult vocational education 
administered by an area vocational technical institute.  
    Sec. 27.  Minnesota Statutes 1983 Supplement, section 
136C.02, subdivision 3 is amended to read: 
    Subd. 3.  [POST-SECONDARY VOCATIONAL EDUCATION.] 
"Post-secondary vocational education" means post-secondary and 
adult vocational education administered by an AVTI.  
    Sec. 28.  Minnesota Statutes 1983 Supplement, section 
136C.04, is amended by adding a subdivision to read:  
    Subd. 4a.  [CARRY OVER AUTHORITY.] The state board may 
carry over any unexpended balance from its appropriation from 
the first year of a biennium into the second year of the 
biennium.  The state board may carry over an unexpended balance 
up to a maximum of two percent of its biennial appropriation 
into the following biennium.  These moneys shall not be taken 
into account in determining state appropriations.  
    Sec. 29.  Minnesota Statutes 1983 Supplement, section 
136C.04, subdivision 7, is amended to read: 
    Subd. 7.  [ATTENDANCE AND COMPLETION.] The state board 
shall prescribe conditions of admission, tuition, fees, and 
other related matters.  The state board shall prescribe 
requirements for completion of programs and approve the awarding 
of appropriate certificates or associate degrees consistent with 
the provisions of section 121.218 136C.042.  Chapter 14 shall 
not apply to the matters in this subdivision. 
    Sec. 30.  Minnesota Statutes 1983 Supplement, section 
136C.04, subdivision 10, is amended to read:  
    Subd. 10.  [ALLOCATION.] The state board shall allocate 
state and federal money for post-secondary vocational education. 
Money received from federal sources, other than as provided in 
this chapter 124, and money received from other sources, not 
including the state, shall not be taken into account in 
determining appropriations or allocations.  
    Sec. 31.  [136C.041] [WITHHOLDING OF ALLOCATIONS.] 
    Subdivision 1.  The state board may withhold allocations 
for post-secondary vocational education if the board finds a 
district to be in violation of any statute, rule, or state board 
policy.  
    Subd. 2.  The state board shall notify the district of its 
finding.  The notice shall specify the violation, describe the 
correction required, and set a reasonable time within which the 
district shall correct the violation.  The state board also 
shall provide the district an opportunity for a hearing to 
respond and to dispute the finding.  No allocations shall be 
withheld pending the final decision of the state board.  If a 
violation is corrected in the allotted time or if the state 
board determines that a violation does not exist, no allocations 
shall be withheld.  
    Subd. 3.  The decision of the state board under this 
section may be reviewed on certiorari by the district court of 
the county in which the district, or any part of it, is located. 
    Sec. 32.  [136C.06] [SOLE STATE AGENCY.] 
    The state board of vocational technical education is the 
sole state agency to receive and disburse federal funds 
authorized by the Vocational Education Act of 1963, as amended 
in the education amendments of 1976, Public Law Number 94-482, 
and Code of Federal Regulations, title 34, part 400.  The state 
board shall develop and submit the state plan for vocational 
technical education.  The state board shall develop the state 
plan according to terms of agreement with the state board of 
education.  
    Sec. 33.  [EFFECT OF TRANSFER.] 
    Subdivision 1.  [BOARD TRANSFER.] The powers, duties, and 
functions of the state board of education for adult vocational 
education not administered by an AVTI are transferred to the 
board of vocational technical education on July 1, 1984.  Rules 
of the state board of education relating to adult vocational 
education shall have no force and effect on July 1, 1984, and 
thereafter.  
     Subd. 2.  [TRANSFER NOT TO AFFECT LEGAL ACTION.] The 
transfer of powers, duties, and functions shall not affect any 
action or proceeding, whether administrative, civil, or 
criminal, pending at the time of the transfer.  The action shall 
be continued in the name of the state board of vocational 
technical education which, upon application to the appropriate 
court, shall be substituted as a party to the action or 
proceeding. 
     Subd. 3.  [TRANSFER OF PROPERTY.] All books, maps, plans, 
papers, records, contracts, documents, and property of every 
description in the possession or control of the state board of 
education, relating to adult vocational education, shall be 
transferred to the state board of vocational technical 
education.  The transfer shall be made in accordance with the 
directions of the state board of vocational technical education. 
     Subd. 4.  [TRANSFER OF FUNDS.] The unencumbered and 
unexpended balance of all funds appropriated to the state board 
of education for adult vocational education shall be transferred 
to the state board of vocational technical education.  All 
federal money for adult vocational education shall be 
transferred to the state board of vocational technical 
education.  Notwithstanding any law to the contrary, for the 
1984-1985 school year, the state board of vocational technical 
education shall expend for adult vocational education not 
administered by an AVTI only the funds available from the state 
board of education.  Funds available to the state board of 
vocational technical education for post-secondary and adult 
vocational education administered by an AVTI shall not be used 
for adult vocational education not administered by an AVTI.  
    Subd. 5.  [CONSTRUCTION OF STATUTES, CONTRACTS, AND 
DOCUMENTS.] Whenever the state board of education or its officer 
is referred to or designated in a statute, contract, or 
document, in the context of adult vocational education, the 
reference or designation shall be construed to mean the state 
board of vocational technical education or its officer.  
    Sec. 34.  [MERGED POST-SECONDARY AND ADULT BUDGETS.] 
    The state director of vocational technical education may 
prepare a merged budget for post-secondary and adult vocational 
education for the 1985-1986 school year and shall maintain 
records of revenues and expenditures and student enrollment in 
the current categories of post-secondary and adult vocational 
education for each institution.  The state board shall prepare a 
comparison of the financial implications of funding adult 
vocational programs through the current statutory adult 
vocational formula and the average cost funding formula.  
    Sec. 35.  [STUDENT PROGRAM COMPLETION.] 
    If an AVTI program is eliminated by state board action, the 
state board may provide for student subsistence to complete the 
same program in another AVTI during the 1984-1985 school year. 
The state board may provide the subsistence only if the cost of 
providing the program in the alternative AVTI is less than the 
cost of maintaining the program in the original AVTI.  
    Sec. 36.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes shall renumber each section of 
Minnesota Statutes specified in Column A with the number set 
forth in Column B.  The revisor shall also make necessary 
cross-reference changes consistent with the renumbering.  
            Column A                Column B
             121.21                  136C.07
             121.212                 136C.08
             121.213                 136C.17
             121.214                 136C.42
             121.215                 136C.43
             121.2155                136C.44
             121.216                 136C.15
             121.218                 136C.042
             124.52                  136C.21
             124.54                  136C.211
             124.55                  136C.212
             124.56                  136C.213
             124.5611                136C.25
             124.5612                136C.26
             124.5613                136C.27
             124.5614                136C.28
             124.5615                136C.29
             124.5616                136C.31
             124.5617                136C.32
             124.5618                136C.33
             124.5619                136C.34
             124.5628                136C.35
             124.5629                136C.36
             124.564                 136C.41
             124.565                 136C.13
             124.57                  136C.37
             124.572                 136C.38
             124.58                  136C.22
             124.59                  136C.221
             124.60                  136C.222
             124.61                  136C.223
    Sec. 37.  [REPEALER.] 
    Minnesota Statutes 1982, sections 121.217; 124.565, 
subdivisions 3 and 4; 124.572, subdivisions 2a and 8; 124.573, 
subdivisions 2a, 3b, and 5;  124.574, subdivisions 2, 2a, and 
3a, are repealed.  Minnesota Statutes 1983 Supplement, sections 
124.11, subdivisions 2a and 2b; 124.5613, subdivision 1, are 
repealed.  
    Sec. 38.  [APPROPRIATION.] 
    The sum of $600,000 is appropriated from the general fund 
to the state board of vocational technical education for fiscal 
year 1985 to develop new programs and to update curriculum.  
    Sec. 39.  [EFFECTIVE DATE.] 
    Section 28 is effective June 30, 1984. 

                                ARTICLE 6

                          OTHER AIDS AND LEVIES
    Section 1.  Minnesota Statutes 1983 Supplement, 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 
the mill rate as determined by the county auditor based upon the 
original assessed valuation is applied upon 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 abatement adjustment 
shall be recognized as revenue in the fiscal year in which it is 
received.  The amount of the abatement adjustment shall be the 
product of:  
    (1) the net revenue loss as certified by the county 
auditor, times 
    (2) the ratio of:  
    (a) the sum of the amounts of the district's certified levy 
in the preceding October according to the following:  
    (i) section 275.125, subdivisions 2a, 7d, clause (1), and 
7d, clause (2), if the district is entitled to basic foundation 
aid according to section 124.2122;  
    (ii) section 275.125, subdivisions 7d, clause (3), if the 
district is entitled to third tier aid according to section 
124A.10, subdivision 3;  
    (iii) section 275.125, subdivision 7d, clause (4), and 7d, 
clause (5), if the district is eligible for fourth tier aid 
according to section 124A.12, subdivision 3;  
    (iv) section 275.125, subdivisions 2j and 2k, if the 
district is entitled to summer school aid according to section 
124.201; and 
    (v) section 275.125, subdivisions 5 and 5c, if the district 
is entitled to transportation aid according to section 124.225, 
subdivision 8a;  
    (b) to the sum of the amounts total amount of the 
district's certified levy limitations in the preceding October 
pursuant to section 275.125, subdivisions 2a, 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, 
plus or minus auditor's adjustments.  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.  The abatement 
adjustment shall be recognized as revenue in the fiscal year in 
which it is received. 
    Sec. 2.  Minnesota Statutes 1982, section 124.245, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BASIC COMPUTATION.] (a) For the 1981-1982 
school year and Each year thereafter, except for the 1982-1983 
school year, the state shall pay a school district the 
difference by which an amount equal to $90 per pupil unit in 
that school year or, in districts where the actual number of 
actual pupil units identified in section 124.17, subdivision 1, 
clauses (1) and (2), has increased from the prior year, $95 per 
pupil unit in that school year, exceeds the amount raised by 
seven 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 have levied the full seven EARC mills for use for capital 
expenditures in that year pursuant to section 275.125, 
subdivision 11a. 
    For the 1982-1983 school year the state shall pay a school 
district the difference by which an amount equal to $89 per 
pupil unit in that school year or, 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, $94 
per pupil unit in that school year, exceeds the amount raised by 
seven 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 have levied the full seven EARC mills for use for capital 
expenditures in that year pursuant to section 275.125, 
subdivision 11a.  
    (b) In the 1982-1983 school year and each year thereafter, 
The aid under clause (a) for any district which operates an 
approved secondary vocational education program or an approved 
senior secondary industrial arts program shall be computed using 
a dollar amount per pupil unit which is $5 higher than the 
amount specified in clause (a). 
    (c) If the sum of a district's capital expenditure levy 
under section 275.125, subdivision 11a, attributable to any 
school year starting in 1982-1983 and its capital expenditure 
equalization aid, if any, under this subdivision for that school 
year exceeds $89 $90 per pupil unit or, in districts where the 
actual number of actual pupil units identified in section 
124.17, subdivision 1, clauses (1) and (2), has increased from 
the prior year, $94 $95 per pupil unit, the amount of the excess 
may be expended only for the purpose of capital expenditures for 
equipment for secondary vocational education programs or senior 
secondary industrial arts programs. 
    Sec. 3.  [126.60] [PROGRAMS OF EXCELLENCE.] 
    Subdivision 1.  [DESIGNATION.] The commissioner of 
education shall designate secondary academic programs as 
programs of excellence by April 1 each year according to 
criteria established by the commissioner.  The criteria may 
include:  teacher qualifications; curriculum offerings; student 
ability averages; management; expectations; academic standards; 
order and discipline; clearly defined academic goals; 
administrative leadership; community support; organization for 
learning; frequency, monitoring, and reporting of homework; 
regularity and frequency of monitoring of pupil progress; 
coordination, articulation, and comprehensiveness of curriculum; 
variety of teaching strategies; opportunities for pupils 
responsibility; commitment to accept at least five pupils; and 
ability to provide host families.  A designation as a program of 
excellence shall be for two school years and may be renewed upon 
reapplication.  
    Subd. 2.  [APPLICATION.] A district may apply to the 
commissioner for designation of one or more of its secondary 
academic programs as a program of excellence.  The application 
shall include information required by the commissioner.  The 
commissioner shall distribute criteria and applications for all 
districts.  
    Subd. 3.  [COMMITTEE.] The commissioner shall establish a 
programs of excellence committee.  The committee shall advise 
the commissioner about criteria for the programs and may review 
district applications.  
    Subd. 4.  [INCENTIVE GRANTS.] A district with a program 
designated as a program of excellence shall receive an incentive 
grant for the program for each year of the designation.  
    Sec. 4.  [126.62] [PUPILS FOR PROGRAMS OF EXCELLENCE.] 
    Subdivision 1.  [PUPIL SELECTION.] The commissioner of 
education shall select pupils to attend programs of excellence 
according to criteria established by the commissioner.  The 
criteria may include, but not be limited to, an evaluation of 
the pupil's academic ability, the pupil's future career plans, 
and lack of academic opportunity in the pupil's current school.  
    Subd. 2.  [APPLICATION.] The commissioner shall distribute 
to all districts the criteria and application forms containing 
the date applications are due.  Each district shall distribute 
the criteria and applications to all pupils in the district in 
grades 7 to 11 and their parents.  Any pupil may request 
additional information about the program, school, and the 
district.  A pupil shall be notified of selection by June 1 each 
year.  Additional pupils may be selected after June 1 if space 
is available.  
    Subd. 3.  [PROGRAM LIMITS.] No more than 100 pupils who 
have completed at least the eighth grade or equivalent may be 
selected to participate in the program.  No more than ten pupils 
selected may attend a particular program of excellence at any 
one time.  
    Subd. 4.  [ATTENDANCE.] A pupil selected shall attend the 
school with the program of excellence full time.  A pupil may 
continue to attend the program through completion of all 
programs offered by the school if the pupil maintains 
satisfactory progress.  At least twice a year the principal of a 
school with a program of excellence shall certify to the 
commissioner whether or not the pupil is making satisfactory 
progress.  A pupil not making satisfactory progress, as 
certified by the principal, shall be dropped from the program as 
of the date of the certification.  
    Subd. 5.  [COMMITTEE.] The programs of excellence 
committee, established in section 3, subdivision 3, shall advise 
the commissioner about criteria and application forms for pupil 
selection.  
    Subd. 6.  [TRANSPORTATION.] The commissioner may reimburse 
transportation costs when a pupil demonstrates need.  
    Subd. 7.  [HOST FAMILIES.] A school with a program of 
excellence shall screen and arrange for volunteer host families 
for nonresident pupils selected to attend the school.  
    Sec. 5.  [126.64] [FOUNDATION REVENUE FOR PUPILS.] 
    Subdivision 1.  [DISTRICT OF RESIDENCE.] All foundation 
revenue which a pupil selected to attend a school of excellence 
would have earned for the resident district had the pupil 
continued to attend that district shall continue to be earned by 
the resident district.  If a pupil selected to attend a program 
of excellence has not been enrolled in a public school in the 
resident district for at least one school year immediately 
preceding enrollment in a program of excellence, the resident 
district shall not earn foundation revenue for that pupil.  
    Subd. 2.  [DISTRICT OF ATTENDANCE.] The district receiving 
a pupil selected to participate in the program of excellence 
program shall count the pupil as a resident pupil unit as 
defined in section 124.17 for purpose of determining aids and 
levies.  
    Sec. 6.  Minnesota Statutes 1982, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 6e.  [DESEGREGATION LEVY.] Each year any district 
which is implementing a plan for desegregation mandated by the 
state board of education or under court order may levy an amount 
not to exceed one mill times the adjusted assessed valuation of 
the district.  Notwithstanding section 121.904, the entire 
amount of this levy shall be recognized as revenue for the 
fiscal year in which the levy is certified.  This levy shall not 
be considered in computing the aid reduction under section 
124.155.  A district which levies pursuant to this subdivision 
may not place the proceeds of the 1983 payable 1984 levy 
authorized by section 275.125, subdivision 9a, in the general 
fund.  
    Sec. 7.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 8a, is amended to read: 
    Subd. 8a.  [INTERDISTRICT COOPERATION LEVY.] Each year, a 
district which is eligible for aid pursuant to section 124.272, 
subdivision 2, 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 
the levy shall not exceed the lesser of:  (1) $50 times the 
actual pupil units for that school year.  No levy under this 
subdivision shall exceed; (2) $50,000; or (3) 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. 8.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 9b, is amended 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, section 2, but excluding clauses (l), (m), (n), 
(o), and (p), and Laws 1982, Third Special Session chapter 1, 
article 3, sections section 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 
275.125, subdivision 2a or 2e in that same year. 
    Sec. 9.  Minnesota Statutes 1983 Supplement, 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 total pupil unit, or $95 per total pupil unit 
in districts where the actual number of actual 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 levy 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 
purchase textbooks, to pay leasing fees for purchase and lease 
computer systems hardware and related proprietary, software, and 
related supporting materials, and to pay leasing fees for 
purchase or lease 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, 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.  
The proceeds of the tax may also be used to pay principal and 
interest on loans from the state authorized by section 116J.37.  
    (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 levy 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 total pupil unit for capital 
expenditures for equipment for these programs. 
    (g) For purposes of computing allowable levies under this 
subdivision and 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. 10.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 11b, is amended to read: 
    Subd. 11b.  [SPECIAL PURPOSE CAPITAL EXPENDITURE LEVY.] 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 total 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, 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; and 
    (f) to pay principal and interest on loans from the state 
authorized by section 116J.37. 
    Sec. 11.  Minnesota Statutes 1983 Supplement, section 
275.125, subdivision 11c, is amended 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, each year a school 
district may levy an amount not to exceed the amount equal to 
$25 per total 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, asbestos related repairs, 
or the cleanup and disposal of polychlorinated biphenyls found 
in school buildings or property. 
    Sec. 12.  Minnesota Statutes 1983 Supplement, 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.  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.  However, a school district may not levy 
pursuant to this section for premium costs for motor vehicle 
insurance protecting against injuries or damages arising out of 
the operation of district owned, operated, leased, or controlled 
vehicles for the transportation of pupils for purposes for which 
state aid is authorized under section 124.223, or for purposes 
for which the district is authorized to levy under section 
275.125, subdivision 5d.  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. 13.  Laws 1983, chapter 314, article 6, section 34, 
subdivision 12, is amended to read: 
    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 
$48,972 to Independent School Distict No. 309-Pine Point School; 
$8,750 $8,639 to Independent School District No. 166; $13,500 
$13,329 to Independent School District No. 432; $12,700 $12,539 
to Independent School District No. 435; $38,100 $37,618 to 
Independent School District No. 707; and $35,350 $34,903 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 
$50,955 to Independent School Distict No. 309-Pine Point School; 
$9,200 $8,998 to Independent School District No. 166; $14,200 
$13,888 to Independent School District No. 432; $13,350 $13,056 
to Independent School District No. 435; $40,050 $39,170 to 
Independent School District No. 707; and $37,100 $36,285 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 allocations are based on 100 
percent of the entitlement for fiscal year 1985, 85 percent of 
which is appropriated for payment in fiscal year 1985.  
    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 1985-86 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. 
    Sec. 14.  [STATUTORY OPERATING DEBT LEVY INTO GENERAL 
FUND.] 
    Notwithstanding Minnesota Statutes 1982, section 275.125, 
subdivision 9a, and any other law to the contrary, a school 
district located in a city of the first class, which does not 
levy pursuant to Minnesota Statutes, section 275.125, 
subdivision 6e, may place the proceeds of the 1983 payable 1984 
levy authorized by Minnesota Statutes 1982, section 275.125, 
subdivision 9a, in the general fund.  This authority shall not 
be construed to modify a district's obligation to eliminate its 
statutory operating debt.  
    Sec. 15.  [OPERATING DEBT LEVY FOR BUHL AND MOUNTAIN IRON 
CONSOLIDATION.] 
    Subdivision 1.  [AUTHORIZATION.] In 1985 and each year 
thereafter, the newly created district formed by the 
consolidation of Independent School District No. 694, Buhl, and 
Independent School District No. 703, Mountain Iron, may make an 
additional levy to eliminate a deficit in the net unappropriated 
operating funds of the newly created district, determined as of 
June 30, 1985, and certified and adjusted by the commissioner. 
This levy each year may be an amount not to exceed 1.5 mills 
times the adjusted assessed valuation of the newly created 
district for the preceding year as determined by the 
equalization aid review committee.  When the cumulative amount 
of the levies made pursuant to this subdivision equals the total 
amount of the certified deficit of the newly created district, 
the levy shall be discontinued.  
    Subd. 2.  [USE OF PROCEEDS.] 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.  
    Subd. 3.  [CONDITION OF LEVY AUTHORITY.] In any year in 
which the newly created district levies pursuant to this 
subdivision, it shall certify the maximum levy allowable under 
section 275.125, subdivision 2a, in that same year.  
    Subd. 4.  [EFFECTIVE DATE AND NO LOCAL APPROVAL.] Pursuant 
to Minnesota Statutes, section 645.023, subdivision 1, clause 
(a), this section is effective without local approval the day 
following final enactment.  
     Sec. 16.  [HERMANTOWN; SPECIAL ASSESSMENT LEVY.] 
     In 1984, Independent School District No. 700, Hermantown, 
may certify a levy in an amount not to exceed $50,000 for a 
special sewer and water assessment.  
    Sec. 17.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, sections 124.245, 
subdivision 1a; 124.246, subdivision 2a; 124.26, subdivision 1a; 
124.273, subdivisions 1a and 2a, are repealed.  
    Sec. 18.  [APPROPRIATION FOR DEFICIENCIES.] 
    Subdivision 1.  [ABATEMENT AID.] For abatement aid pursuant 
to section 124.214, subdivision 2, there is appropriated from 
the general fund to the department of education for the fiscal 
year ending June 30, 1984, the sum of $1,031,000 and for the 
fiscal year ending June 30, 1985, the sum of $1,000,000.  These 
appropriations shall be added to the sums appropriated for 
fiscal years 1984 and 1985 for this purpose in Laws 1983, 
chapter 314, article 6, section 34, subdivision 3.  
    Subd. 2.  [INTERDISTRICT COOPERATION AID.] For 
interdistrict cooperation aid pursuant to section 124.272, there 
is appropriated from the general fund to the department of 
education for the fiscal year ending June 30, 1985, the sum of 
$255,000.  This appropriation shall be added to the sum 
appropriated for fiscal year 1985 in Laws 1983, chapter 314, 
article 6, section 34, subdivision 9.  
    Subd. 3.  [RESIDENTIAL FACILITIES AID.] For residential 
facilities aid pursuant to section 124.32, subdivision 5, there 
is appropriated from the general fund to the department of 
education, the sum of $526,100 for the fiscal year ending June 
30, 1984 and the sum of $526,100 for the fiscal year ending June 
30, 1985.  These approriations shall be added to the sums 
appropriated for fiscal years 1984 and 1985 in Laws 1983, 
chapter 314, article 3, section 19, subdivision 5.  
    Sec. 19.  [APPROPRIATION.] 
    Subdivision 1.  [NETT LAKE.] The sum of $20,000 is 
appropriated from the general fund to the department of 
education to pay the obligation of Independent School District 
No. 707, Nett Lake, for unemployment compensation.  The sum 
shall be available until June 30, 1985.  
    Subd. 2.  [PROGRAMS OF EXCELLENCE.] For planning and 
development of programs of excellence pursuant to sections 3 to 
5, there is appropriated from the general fund to the department 
of education for fiscal year 1985, the sum of $15,000.  
    Sec. 20.  [EFFECTIVE DATES.] 
    Subdivision 1.  Sections 3 to 5 are effective July 1, 1984, 
for programs of excellence to be implemented beginning in the 
1985-1986 school year.  
    Subd. 2.  Sections 13 and 18 are effective the day 
following final enactment.  
     Subd. 3.  Section 9 is effective for expenditures of levy 
proceeds beginning in the 1984-1985 school year.  

                               ARTICLE 7 
MISCELLANEOUS
    Section 1.  Minnesota Statutes 1983 Supplement, section 
121.15, subdivision 1, is amended to read: 
    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, other than an area 
vocational technical institute.  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. 
    Sec. 2.  Minnesota Statutes 1983 Supplement, section 
121.503, subdivision 5, is amended to read: 
    Subd. 5.  [REPORT.] The council on quality education shall 
submit a report to the education committees of the legislature 
by February 1 each year.  This report shall include the number 
and description of programs approved, implementation status of 
programs approved, waivers granted, and evaluation of programs 
approved.  
    Sec. 3.  Minnesota Statutes 1982, section 121.908, is 
amended by adding a subdivision to read: 
    Subd. 6.  A school district providing early retirement 
incentive payments under section 125.611, severance pay under 
section 465.72, or health insurance benefits to retired 
employees under section 471.61, must account for the payments 
according to uniform financial accounting and reporting 
standards adopted for Minnesota school districts pursuant to 
section 121.902.  
    Sec. 4.  Minnesota Statutes 1982, section 121.912, is 
amended by adding a subdivision to read: 
    Subd. 4.  [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 
On June 30 of each year, a district may make a permanent 
transfer from the general fund account entitled "unappropriated 
fund balance since statutory operating debt" to the account 
entitled "appropriated fund balance reserve account for purposes 
of reducing statutory operating debt."  The amount of the 
transfer is limited to the lesser of (a) the net unappropriated 
operating fund balance, or (b) the sum of the remaining 
statutory operating debt levies authorized for all future years 
according to section 275.125, subdivision 9a.  If the net 
unappropriated operating fund balance is less than zero, the 
district may not make a transfer.  
    Sec. 5.  Minnesota Statutes 1982, section 121.935, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES.] Every regional management information 
center shall: 
    (a) Assist its affiliated districts in complying with the 
reporting requirements of the annual data acquisition calendar 
and the rules of the state board of education; 
    (b) Respond within 15 calendar days to requests from the 
department for district information provided to the region for 
state reporting of information, based on the data elements in 
the data element dictionary; 
    (c) Operate financial management information systems 
consistent with the uniform financial accounting and reporting 
standards for Minnesota school districts adopted by the state 
board pursuant to sections 121.90 to 121.917; 
    (d) Make available to districts the opportunity to 
participate fully in all the subsystems of ESV-IS; 
    (e) Before July 1, 1981, develop a plan for the provision 
of services during a system failure or a disaster; 
    (f) Comply with the requirement in section 121.908, 
subdivision 2, on behalf of districts affiliated with it; and 
    (g) Operate fixed assets property management information 
systems consistent with the uniform property accounting and 
reporting standards for Minnesota area vocational-technical 
institutes adopted by the state board pursuant to section 
121.902, subdivision 1a. 
    Sec. 6.  Minnesota Statutes 1982, section 121.935, 
subdivision 6, is amended to read: 
    Subd. 6.  [FEES.] Regional management information centers 
may charge fees to affiliated districts.  A district which 
submits financial transactions to the center in summary form 
pursuant to section 121.936, subdivision 1, or which uses an 
approved alternative management information system pursuant to 
section 121.936, subdivisions 2 to 4, may apply to the 
commissioner to set the fee if the district and the center 
cannot agree on a fee.  The commissioner shall issue an order 
setting the fee, which shall be binding on both the center and 
the district for the cost of services provided to the district 
and the district's proportionate share of outstanding regional 
debt.  In no event shall the annual fee of a district 
participating in a state pilot program of an alternative 
financial management information system exceed the annual fee 
chargeable to the district in the absence of the pilot program.  
    Sec. 7.  Minnesota Statutes 1982, section 121.936, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MANDATORY PARTICIPATION.] (a) By July 1, 
1980, every district shall perform financial accounting and 
reporting operations on a financial management accounting and 
reporting system utilizing multi-dimensional accounts and 
records defined in accordance with the uniform financial 
accounting and reporting standards adopted by the state board 
pursuant to sections 121.90 to 121.92.  
    (b) By July 1, 1980, every school district shall be 
affiliated with one and only one regional management information 
center.  This affiliation shall include at least the following 
components:  
    (1) The center shall provide reports to the department of 
education for the district to the extent required by the data 
acquisition calendar;  
    (2) The district shall use the ESV-IS finance subsystem 
through the center to process every detailed financial 
transaction of the district.  
    Notwithstanding the foregoing, a district with 3,000 or 
fewer pupils in average daily membership as defined in section 
124.17, subdivision 2, may submit its financial transactions to 
the center for processing in summary form if before July 1, 
1980, the planned form of the district's submission of its 
transactions and the conformance of the district's financial 
accounting and reporting system to the uniform financial 
accounting and reporting standards adopted by the state board 
pursuant to sections 121.90 to 121.92 are approved by the 
following team: the director of school financial management in 
the department of education, and the director of management 
information services and the coordinator for the ESV-IS finance 
subsystem for the Minnesota educational computing consortium may 
process and submit its financial data to a region or the state 
in summary form if it operates an approved alternative system or 
participates in a state approved pilot test of an alternative 
system.  
    (c) The provisions of this subdivision shall not be 
construed to prohibit a district from purchasing services other 
than those described in clause (b) from a center other than the 
center with which it is affiliated pursuant to clause (b). 
    Districts operating an approved alternative system or 
participating in a state approved pilot test of an alternative 
financial system shall purchase finance system services from any 
region if the region of affiliation does not offer alternative 
system support services.  
    Sec. 8.  [123.3513] [ADVANCED ACADEMIC CREDIT.] 
    A school district shall grant academic credit to a pupil 
attending an accelerated or advanced academic course offered by 
a higher education institution or a nonprofit public agency 
other than the district, if the pupil successfully completes the 
course attended and passes an examination approved by the 
district.  If no comparable course is offered by the district, 
the state board of education shall determine the number of 
credits which shall be granted to a pupil who successfully 
completes and passes the course.  If a comparable course is 
offered by the district, the school board shall grant a 
comparable number of credits to the pupil.  If there is a 
dispute between the district and the pupil regarding the number 
of credits granted for a particular course, the pupil may appeal 
the school board's decision to the state board of education. The 
state board's decision regarding the number of credits shall be 
final.  
    The credits granted to a pupil shall be counted toward the 
graduation requirements and subject area requirements of the 
school district.  Evidence of successful completion of each 
class and credits granted shall be included in the pupil's 
secondary school record.  
    Sec. 9.  Minnesota Statutes 1982, section 123.36, 
subdivision 10, is amended to read: 
    Subd. 10.  (a) The board may lease a schoolhouse which that 
is not needed for school purposes to any person or organization. 
The board may charge and collect reasonable consideration for 
the lease and may determine the terms and conditions of the 
lease. 
    (b) In districts with outstanding bonds, the net proceeds 
of the lease shall be first 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 all 
outstanding bonds that is ascribable to the payment of expenses 
necessary and incidental to the construction or purchase of the 
particular building or property that is leased.  Any remaining 
net proceeds in these districts may be deposited in either the 
debt redemption fund or capital expenditure fund.  and All net 
proceeds of the lease in districts without outstanding bonds 
shall be deposited in the capital expenditure fund of the 
district. 
    (c) The board may make capital improvements to a 
schoolhouse or a portion thereof, not exceeding in cost the 
replacement value of the schoolhouse, to facilitate its rental, 
and the lease of an improved schoolhouse shall provide for 
rentals which will recover the cost of the improvements over the 
initial term of the lease.  Notwithstanding clause (b), the 
portion of the rentals representing the cost of the improvements 
shall be deposited in the capital expenditure fund of the 
district and the balance of the rentals shall be used as 
provided in clause (b). 
    Sec. 10.  Minnesota Statutes 1983 Supplement, 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;  
    (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 for 
the betterment, as defined in section 475.51, subdivision 8, of 
district-owned school buildings in which enrollment has 
increased as a result of closing schools in the district, other 
than as provided in clauses (b), (c), and (d); or 
    (g) to replace the building or property sold.  
    The amount of the proceeds used for the purposes specified 
in clauses (a), (b), (c), (d), and (e) shall be deducted from 
the levy limitation computed for the levy authorized in section 
275.125, subdivision subdivisions 11b and 11c, as applicable, 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. 11.  [124.2139] [REDUCTION OF HOMESTEAD CREDIT 
PAYMENTS TO SCHOOL DISTRICTS.] 
    Beginning with homestead credit payments made to school 
districts pursuant to section 273.13, subdivisions 6, 7, and 
14a, in fiscal year 1985 for taxes payable in 1984, and each 
year thereafter, the commissioner of revenue shall reduce these 
payments to any school district by the product of:  
    (1) the district's fiscal year 1984 payroll for coordinated 
plan members of the public employees retirement association, 
times 
    (2) the difference between the employer contribution rate 
in effect prior to July 1, 1984, and the total employer 
contribution rate in effect after June 30, 1984.  
    Sec. 12.  Minnesota Statutes 1982, section 124.214, 
subdivision 1, is amended to read: 
    Subdivision 1.  [OMISSIONS.] No adjustments to any aid 
payments made pursuant to this chapter, resulting from omissions 
in school district reports, except those adjustments determined 
by the legislative auditor, shall be made for any school year 
after December 15 30 of the next school year, unless otherwise 
specifically provided by law. 
    Sec. 13.  Minnesota Statutes 1982, section 125.12, 
subdivision 3, is amended to read: 
    Subd. 3.  [PROBATIONARY PERIOD.] The first and second three 
consecutive years of a teacher's first teaching experience in 
Minnesota in a single school district shall be deemed to be a 
probationary period of employment, and after completion thereof, 
the probationary period in each school district in which he the 
teacher is thereafter employed shall be one year.  A teacher who 
has complied with the then applicable probationary requirements 
in a school district prior to July 1, 1967, shall not be 
required to serve a new probationary period in the said district 
subsequent thereto.  The school board shall adopt a plan for 
written evaluation of teachers during the probationary period. 
Evaluation shall occur not less than three times each year.  
During the probationary period any annual contract with any 
teacher may or may not be renewed as the school board shall see 
fit; provided, however, that the school board shall give any 
such teacher whose contract it declines to renew for the 
following school year written notice to that effect before June 
1.  If the teacher requests reasons for any nonrenewal of a 
teaching contract, the school board shall give the teacher its 
reason in writing, including a statement that appropriate 
supervision was furnished describing the nature and the extent 
of such supervision furnished the teacher during his the 
employment by the board, within ten days after receiving such 
request.  The school board may, after a hearing held upon due 
notice, discharge a teacher during the probationary period for 
cause, effective immediately, under section 123.35, subdivision 
5. 
    Sec. 14.  Minnesota Statutes 1982, section 125.17, 
subdivision 2, is amended to read:  
    Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 
teachers in the public schools in cities of the first class 
during the first three years of consecutive employment shall be 
deemed to be in a probationary period of employment during which 
period any annual contract with any teacher may, or may not, be 
renewed as the school board shall see fit.  The school board 
shall adopt a plan for a written evaluation of teachers during 
the probationary period.  Evaluation shall occur not less than 
three times each year.  The school board may, during such 
probationary period, discharge or demote a teacher for any of 
the causes as specified in this code.  A written statement of 
the cause of such discharge or demotion shall be given to the 
teacher by the school board at least 30 days before such removal 
or demotion shall become effective, and the teacher so notified 
shall have no right of appeal therefrom. 
    Sec. 15.  Minnesota Statutes 1982, section 125.611, is 
amended by adding a subdivision to read: 
    Subd. 13.  [APPLICATIONS AFTER JUNE 30, 1984.] The state 
shall not reimburse the district for any portion of an early 
retirement incentive for any applications submitted after June 
30, 1984.  Beginning on July 1, 1984, a teacher meeting the 
requirements of subdivision 1 may apply to the school board of 
the employing district for a contract for termination of 
services, withdrawal from active teaching service, and payment 
of an early retirement incentive. This application shall be 
submitted on or before February 1 of the school year at the end 
of which the teacher wishes to retire.  A school board shall 
approve or deny the application within 30 days after it is 
received by the board.  The amount of the early retirement 
incentive shall be agreed upon between the teacher and the 
school board.  The early retirement incentive shall be paid by 
the employing district at the time and in the manner mutually 
agreed upon by a teacher and the board.  
    Sec. 16.  Minnesota Statutes 1982, section 125.185, 
subdivision 4, is amended to read: 
    Subd. 4.  The board shall develop and create rules for the 
licensure of public school teachers and interns, and from time 
to time the board of teaching it shall revise or supplement the 
rules for licensure of public school teachers subject to the 
provisions of chapter 14.  It shall be the duty of the board of 
teaching to establish rules for the approval of teacher 
education programs; provided these rules shall encourage teacher 
educators to obtain periodic classroom teaching experience.  The 
board of teaching shall also grant licenses to interns and to 
candidates for original licenses and receive recommendations 
from local committees as established by the board of teaching 
for the renewal of teaching licenses, grant life licenses to 
those who qualify according to requirements established by the 
board of teaching, and suspend or revoke licenses pursuant to 
sections 125.09 and 214.10.  Notwithstanding any law or rule to 
the contrary, the board shall not establish any expiration date 
for application for life licenses.  With regard to vocational 
education teachers the board of teaching shall adopt and 
maintain as its rules the rules of the state board for 
vocational of education and the state board of vocational 
technical education. 
    Sec. 17.  Minnesota Statutes 1983 Supplement, section 
129B.02, subdivision 4, is amended to read: 
    Subd. 4.  [REPORT TO LEGISLATURE.] The council shall report 
to the education committees of the legislature by November 15 of 
each even-numbered year concerning all research and all 
proposals received, the dispositions 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. 18.  Minnesota Statutes 1983 Supplement, section 
129B.041, subdivision 1, is amended to read: 
    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.  
Products sold shall be clearly labeled as products developed 
pursuant to a grant or loan from the council on quality 
education.  
    Sec. 19.  Minnesota Statutes 1983 Supplement, section 
129B.041, subdivision 3, is amended to read: 
    Subd. 3.  [REVOLVING FUND.] The education products product 
and loan repayment 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, Repayment of loans, made according to 
section 129B.04, subdivision 2, and sale 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.  
    Sec. 20.  Minnesota Statutes 1982, section 275.125, 
subdivision 9a, is amended to read:  
    Subd. 9a.  [STATUTORY OPERATING DEBT LEVY.] (1) In 1978 and 
each year thereafter in which so required by this subdivision, a 
district shall make an additional levy to eliminate its 
statutory operating debt, determined as of June 30, 1977 and 
certified and adjusted by the commissioner.  This levy shall not 
be made in more than 20 successive years and each year before it 
is made, it must be approved by the commissioner and the 
approval shall specify its amount.  This levy shall in each year 
be an amount which is equal to 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; provided that in the last year in which the 
district is required to make this levy, it shall levy 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.  
When the sum of the cumulative levies made pursuant to this 
subdivision equal and transfers made according to section 
121.912, subdivision 4 equals an amount equal to the statutory 
operating debt of the district, the levy shall be discontinued. 
    (2) The district shall establish a special account in the 
general fund which shall be designated "appropriated fund 
balance reserve account for purposes of reducing statutory 
operating debt" on its books and records.  This account shall 
reflect the levy authorized pursuant to this subdivision.  The 
proceeds of this levy 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 is required to levy pursuant to this 
subdivision shall certify the maximum levy allowable under 
subdivision 2a in that same year. 
    (4) Each district shall make permanent fund balance 
transfers so that the total statutory operating debt of the 
district is reflected in the general fund as of June 30, 1977. 
    Sec. 21.  Minnesota Statutes 1982, section 465.721, is 
amended to read: 
    465.721 [FUNDING.] 
    No county, city, township, school district or other 
governmental subdivision shall implement a plan for payment of 
severance pay pursuant to section 465.72 until a plan providing 
for full funding has been developed and approved by the 
governing body.  This section does not apply to school districts.
    Sec. 22.  Minnesota Statutes 1982, section 471.61, 
subdivision 1, is amended to read: 
    Subdivision 1.  [OFFICERS, EMPLOYEES.] Any county, 
municipal corporation, town, school district, county extension 
committee, other political subdivision or other body corporate 
and politic of this state, other than the state or any 
department thereof, through its governing body, and any two or 
more subdivisions acting jointly through their governing bodies, 
may insure or protect its or their officers and employees, and 
their dependents, or any class or classes thereof, under a 
policy or policies, or contract or contracts of group insurance 
or benefits covering life, health, and accident, in the case of 
employees, and medical and surgical benefits, and 
hospitalization insurance or benefits, for both employees and 
dependents, or dependents of an employee whose death was due to 
causes arising out of and in the course of employment, or any 
one or more of such forms of insurance or protection.  Any such 
governmental unit, including county extension committees and 
those paying their employees, may pay all or any part of the 
premiums or charges on such insurance or protection.  Any such 
payment shall be deemed to be additional compensation paid to 
such officers or employees but for purposes of determining 
contributions or benefits under any public pension or retirement 
system it shall not be deemed to be additional compensation.  
Any one or more of such governmental units may determine that a 
person is an officer or employee if such officer or employee 
receives a portion of his income from such governmental 
subdivisions without regard to the manner of his election or 
appointment.  The appropriate officer of such governmental unit, 
or those disbursing county extension funds, shall deduct from 
the salary or wages of each officer and employee who elects to 
become insured or so protected, on the officer's or employee's 
written order, all or part of the officer's or employee's share 
of such premiums or charges and remit the same to the insurer or 
company issuing such policy or contract. 
    Any governmental unit, other than a school district, which 
pays all or any part of such premiums or charges is authorized 
to levy and collect a tax, if necessary, in the next annual tax 
levy for the purpose of providing the necessary funds for the 
payment of such premiums or charges, and except for school 
districts such sums so levied and appropriated shall not, in the 
event such sum exceeds the maximum sum allowed by any law or the 
charter of a municipal corporation, be considered part of the 
cost of government of such governmental unit as defined in any 
tax levy or per capita expenditure limitation; provided at least 
50 percent of the cost of benefits on dependents shall be 
contributed by the employee or be paid by levies within existing 
per capita tax limitations. 
    The word "dependents" as used herein shall mean spouse and 
minor unmarried children under the age of 18 years actually 
dependent upon the employee. 
    Sec. 23.  Minnesota Statutes 1982, section 471.61, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [RETIRED OFFICERS, EMPLOYEES.] Any county, 
municipal corporation, town, school district, county extension 
committee, other political subdivision or other body corporate 
and politic of this state, including the state or any department 
thereof, through its governing body, and any two or more 
subdivisions acting jointly through their governing bodies, may 
insure or protect its or their retired officers and retired 
employees entitled to benefits under any public employees 
retirement act and their dependents, or any class or classes 
thereof, under a policy or policies, or contract or contracts of 
group insurance or benefits covering life, health, and accident, 
medical and surgical benefits, or hospitalization insurance or 
benefits, for retired officers and retired employees and their 
dependents, or any one or more of such forms of insurance or 
protection.  Any such governmental unit, including county 
extension committees, may pay all or any part of the premiums or 
charges on such insurance or protection.  Any one or more of 
such governmental units may determine that a person is a retired 
officer or a retired employee if such officer or employee, when 
employed, received a portion of his income from such 
governmental subdivisions without regard to the manner of his 
election or appointment.  The appropriate officer of such 
governmental unit, or those disbursing county extension funds, 
shall collect from each such retired officer and retired 
employee who elects to become insured or so protected, on such 
officer's or employee's written order, all or part of the 
retired officer's or retired employee's share of such premiums 
or charges and remit the same to the insurer or company issuing 
such policy or contract. 
    Any governmental unit, other than a school district, which 
pays all or any part of such premiums or charges is authorized 
to levy and collect a tax, if necessary, in the next annual tax 
levy for the purpose of providing the necessary funds for the 
payment of such premiums or charges, and except for school 
districts such sums so levied and appropriated shall not, in the 
event such sum exceeds the maximum sum allowed by any law or the 
charter of a municipal corporation, be considered part of the 
cost of government of such governmental unit as defined in any 
tax levy or per capita expenditure limitation; provided at least 
50 percent of the cost of benefits on dependents shall be 
contributed by the retired officer or retired employee or be 
paid by levies within existing per capita tax limitations. 
    The word "dependents" as used herein shall mean spouse and 
minor unmarried children under the age of 18 years actually 
dependent upon the retired officer or retired employee. 
    Sec. 24.  Laws 1976, chapter 20, section 5, subdivision 1, 
is amended to read: 
    Sec. 5.  [RESERVE FUND FOR REDUCING STATUTORY OPERATING 
DEBT.] Subdivision 1.  The district shall establish a special 
reserve account, which shall be designated "reserve account for 
purposes of reducing statutory operating debt" on its books and 
records into which the proceeds of the bonds authorized in 
section 1 and the levies made under section 4 shall be placed.  
The funds in this account shall be used only for the payment of 
district operating expenses, but the amount in this account 
shall never supplement district revenues or income for the 
purposes of increasing the district's capital or operational 
expenditures or budgets, or for any purpose, other than to meet 
temporary cash needs.  Earnings on sums in this account may be 
used for paying interest expenses on tax and aid anticipation 
certificates and for the purposes for which funds in this 
account may be used.  Earnings on sums in this account after 
June 30, 1984, may be withdrawn from the account and placed in 
the general fund.  The funds in this account may be invested and 
reinvested in accordance with the further provisions of 
Minnesota Statutes, Section 475.66, as amended. 
    Sec. 25.  Laws 1983, chapter 314, article 7, section 45, is 
amended to read: 
    Sec. 45.  [PILOT PROJECTS USING MICROCOMPUTERS.] 
    The department of education shall pilot test 
microcomputer-based financial reporting systems in up to eight 
12 school districts during the 1983-1984 1984-1985 school year.  
Districts participating in the pilot test sites shall meet 
hardware, software, and support limitations of the test system 
use as established by the department.  The department shall 
encourage districts in geographic areas that are not now pilot 
testing microcomputer-based financial reporting systems to apply 
for additional test sites.  In selecting additional test sites, 
the department shall give preference to districts in geographic 
areas that do not currently have test sites.  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 1984-1985 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 
January 15, 1985.  The report shall include:  changes in fees 
and costs for districts not participating in the pilot test; an 
analysis of district, state, and regional costs associated with 
operation of the systems; recommendations for maintenance of the 
systems; alternatives, their costs and recommendations for the 
provision of support to users; and an analysis of the 
desirability of limiting the number of allowable alternative 
systems.  The cost of the evaluation shall be paid by the 
department of education. 
    Sec. 26.  Laws 1983, chapter 314, article 8, section 23, is 
amended to read: 
    Sec. 23.  [RULEMAKING ON CURRICULUM.] 
    Subdivision 1.  [SECONDARY CURRICULUM.] By September 1 30, 
1984, the state board of education shall adopt rules pursuant to 
chapter 14, establishing elementary and secondary curriculum 
requirements which that will ensure that a minimum comprehensive 
educational program is available to all public secondary school 
students in the state.  The secondary curriculum rules adopted 
by the state board shall be effective beginning in the 1985-1986 
school year. 
    Subd. 2.  [ELEMENTARY CURRICULUM.] By September 1, 1985, 
the state board of education shall adopt rules pursuant to 
chapter 14, establishing elementary curriculum requirements that 
will ensure that a minimum comprehensive educational program is 
available to all public elementary school students in the 
state.  The elementary curriculum rules adopted by the state 
board shall be effective beginning in the 1986-1987 school year. 
    Subd. 3.  [REPEALER.] This section is repealed on December 
31, 1986.  
    Sec. 27.  [RETROACTIVE CREDITS.] 
    Pupil records shall contain evidence of classes completed 
at the University of Minnesota talented youth mathematics 
project during the 1980-1981, 1981-1982, 1982-1983, and 
1983-1984 school years.  Pupils may take examinations according 
to section 8 for these classes and if the pupil passes the 
examination the pupil shall receive credit for courses taken 
during those years.  
    Sec. 28.  [APPLICABILITY OF THREE YEAR PROBATION.] 
    Notwithstanding the provisions of section 13, a teacher who 
has completed at least one year of the first teaching experience 
in Minnesota in a single school district on June 30, 1984 shall 
be required to have a two-year probationary period in that 
district.  
    Sec. 29.  [INDEPENDENT SCHOOL DISTRICT NO. 271; SALE OF 
BUILDING.] 
    Subdivision 1.  [BUILDING EXCHANGE FOR CASH, PRODUCTS, AND 
SERVICES.] Notwithstanding Minnesota Statutes, sections 123.36, 
subdivision 13, 123.37, and 471.345, or any other law to the 
contrary, Independent School District No. 271, Bloomington, may 
sell a school building to a purchaser for cash, products, and 
services provided by the purchaser.  Cash received from the 
purchaser shall first be placed in the debt retirement fund in 
compliance with Minnesota Statutes, section 123.36, subdivision 
13, clause (1).  Additional cash, if any, may be placed in the 
general fund.  Products and services may be provided for a 
period of time not to exceed five years according to contractual 
terms.  The products and services shall consist of at least 
computer hardware, software, training, and related services as 
needed by the district.  
    Subd. 2.  [EFFECTIVE DATE AND NO LOCAL APPROVAL.] Pursuant 
to section 645.023, subdivision 1, clause (a), subdivision 1 is 
effective without local approval the day following final 
enactment.  
    Sec. 30.  [INDEPENDENT SCHOOL DISTRICT NO. 284; SALE OF 
BUILDINGS.] 
    Subdivision 1.  [EXCESS SALE PROCEEDS INTO GENERAL FUND.] 
Notwithstanding Minnesota Statutes, section 123.36, subdivision 
13, or any other law to the contrary, Independent School 
District No. 284, Wayzata, may deposit the excess proceeds from 
the sale of any building owned by the district that is sold 
before January 1, 1986, into the general fund after complying 
with the provisions of Minnesota Statutes, section 123.36, 
subdivision 13, clause (1).  
    Subd. 2.  [EFFECTIVE DATE AND NO LOCAL APPROVAL.] Pursuant 
to Minnesota Statutes, section 645.023, subdivision 1, clause 
(a), subdivision 1 is effective without local approval the day 
following final enactment.  
    Sec. 31.  [INDEPENDENT SCHOOL DISTRICT NO. 622; SALE OF 
BUILDINGS.] 
    Subdivision 1.  [EXCESS SALE PROCEEDS INTO GENERAL FUND.] 
Notwithstanding Minnesota Statutes, section 123.36, subdivision 
13, or any other law to the contrary, Independent School 
District No. 622, North St. Paul-Maplewood, may deposit the 
excess proceeds from the sale of any building owned by the 
district that is sold after July 1, 1983, into the general fund 
after complying with the provisions of Minnesota Statutes, 
section 123.36, subdivision 13, clause (1).  
    Subd. 2.  [EFFECTIVE DATE AND NO LOCAL APPROVAL.] According 
to Minnesota Statutes, section 645.023, subdivision 1, clause 
(a), subdivision 1 is effective without local approval the day 
following final enactment.  
    Sec. 32.  [INDEPENDENT SCHOOL DISTRICT NOS. 524 and 525; 
SPECIAL CONSOLIDATION PROVISIONS.] 
    Subdivision 1.  [SCHOOL DISTRICT NOS. 524 and 525; 
CONSOLIDATION PROVISIONS.] Independent School District No. 524, 
Halstad, and Independent School District No. 525, Hendrum, as 
part of an agreement to consolidate according to Minnesota 
Statutes, section 122.23 or any other law, may agree to any of 
the following:  
    (a) election districts of the size and with the population 
desired by the consolidating districts; and 
    (b) 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 some members from 
previously existing districts.  
    Election districts created pursuant to this agreement may 
be changed or altered in the manner provided in Minnesota 
Statutes, section 123.32, subdivision 15.  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.  
    Subd. 2.  [EFFECTIVE DATE.] Pursuant to Minnesota Statutes, 
section 645.023, subdivision 1, clause (a), subdivision 1 is 
effective without local approval on the day following final 
enactment.  
    Sec. 33.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 147.] 
Notwithstanding any law to the contrary, Independent School 
District No. 147, Dilworth, is authorized to permanently 
transfer to its general fund from its capital expenditure fund 
an amount not to exceed $60,000.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 147 with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 34.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 319.] 
Notwithstanding any law to the contrary, Independent School 
District No. 319, Nashwauk-Keewatin, is authorized to 
permanently transfer an amount not to exceed $75,000 from the 
pupil transportation fund balance account entitled "appropriated 
for bus purchases" to the general fund unappropriated fund 
balance account for the purpose of reducing the school 
district's operating debt on or before June 30, 1984.  
    Subd. 2.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
Statutes, section 645.023, subdivision 1, clause (a), 
subdivision 1 is effective without local approval the day 
following final enactment.  
    Sec. 35.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 464.] 
Independent School District No. 464, Grove City, may permanently 
transfer $80,000 from the capital expenditure fund to the 
general fund.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 464, Grove City, with Minnesota Statutes, section 
645.021, subdivision 3.  
    Sec. 36.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [SCHOOL DISTRICT NO. 627; FUND TRANSFER.] 
Independent School District No. 627, Oklee, may permanently 
transfer $50,000 from the bus purchase account of the pupil 
transportation fund to the general fund for the 1984-1985 school 
year.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 627 with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 37.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 726.] 
Notwithstanding the provisions of Minnesota Statutes, section 
121.912, in fiscal year 1984, Independent School District No. 
726, Becker, is authorized to permanently transfer the sum of 
$100,000 from the general fund of the district to the capital 
expenditure fund of the district to eliminate a deficit in the 
capital expenditure fund.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 726 with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 38.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 852.] 
Independent School District No. 852, Campbell-Tintah, is 
authorized to make a permanent transfer of interest income from 
the capital expenditure fund to the general fund before July 1, 
1984, and again, before July 1, 1985.  
    Subd 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 852 with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 39.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 460.] 
Notwithstanding Minnesota Statutes, section 475.61, subdivision 
4, or any other law to the contrary, by June 30, 1984, 
Independent School District No. 460, Granada-Huntley, may 
transfer to its general fund the amount of any surplus remaining 
in its debt service fund when the obligations and interest 
thereon for the Granada school building are paid.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after the school board of Independent School District No. 
460 complies with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 40.  [FUND TRANSFER AUTHORIZATION.] 
    Subdivision 1.  [INDEPENDENT SCHOOL DISTRICT NO. 833.] 
Notwithstanding any law to the contrary, for the school year 
1984-1985 Independent School District No. 833, South Washington 
County, may permanently transfer an amount not to exceed 
$500,000 from the capital expenditure fund to the general fund.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day after compliance by the school board of Independent School 
District No. 833 with Minnesota Statutes, section 645.021, 
subdivision 3.  
    Sec. 41.  [ARTS EDUCATION REPORT.] 
    By January 15, 1985, the department of education shall 
report to the education committees of the legislature 
recommendations for improving arts education in elementary and 
secondary schools.  The report shall include:  
    (1) a review of the comprehensive arts planning grants 
authorized by Minnesota Statutes, sections 129B.17 to 129B.21;  
    (2) an assessment of the need for arts programs at 
elementary and secondary schools with recommendations for 
expanded arts opportunities for all students; and 
    (3) recommendations about establishing a Minnesota school 
for the arts, specifically addressing:  the need for the school; 
a governance structure; administration and staffing; curriculum 
components, including academic areas; student selection 
procedures, tuition, transportation, and housing; capital and 
operational budgets; funding provisions and sources; and ability 
to serve as a statewide resource center for school districts and 
staff.  
    Sec. 42.  [REPORT ABOUT COOPERATION AND SECONDARY 
VOCATIONAL COURSES.] 
    Subdivision 1.  By January 1, 1985, the commissioner of 
education shall report to the education committees of the 
legislature on recommendations for allocating revenue to all 
school districts on an equitable and appropriate basis for the 
purpose of cooperating in providing special education, secondary 
vocational programs, and academic programs.  In making 
recommendations, the commissioner shall consider cooperative 
incentive revenues available through the intermediate school 
district levies and the interdistrict cooperation aid and levy. 
The commissioner shall include recommendations on offering 
cooperative programs through educational cooperative service 
units; education districts, as defined in Laws 1983, chapter 
314, article 6, section 32; intermediate school districts; and 
other cooperations formed by joint powers agreements.  The 
commissioner shall also review the adequacy of the existing 
special education and secondary vocational funding formulas. The 
commissioner shall also consider, but not be limited to, the 
following factors that may affect interdistrict cooperative 
efforts:  
    (1) types of programs being offered, 
    (2) type, number, and resident districts of students being 
served, 
    (3) size of the attendance area, and 
    (4) the extent to which various programs are integrated 
within each district or service area.  
    This report may include further evaluation of the report 
required pursuant to Laws 1983, chapter 314, article 7, section 
49.  
    Subd. 2.  If the state board of education adopts rules 
requiring school districts to offer secondary vocational 
education courses, the report in subdivision 1 shall also 
discuss the fiscal impact on the school districts and the impact 
on a school district's ability to offer other academic elective 
courses as a result of adopting rules requiring school districts 
to offer secondary vocational education.  
    Sec. 43.  [SUSPENSION ON LICENSE RULES.] 
    The board of teaching shall not adopt any new or amended 
rules relating to licensing teachers until July 1, 1985.  
    Sec. 44.  [DEADLINE FOR EXPERIENCE FOR MIDDLE SCHOOL 
LICENSE.] 
    The deadline for a licensed elementary or secondary teacher 
to gain the three years' Minnesota middle school teaching 
experience necessary to be issued a middle school teaching 
license, upon application, under Minnesota Rules, part 
8700.3400, subparts 11 and 12, is extended from July 1, 1983, to 
July 1, 1984.  
    Sec. 45.  [SPECIAL EDUCATION:  EARLY CHILDHOOD RULES.] 
    Subdivision 1.  Colleges and universities which offer 
approved special education:  early childhood programs shall, 
upon request of the state board of teaching, update their 
description of assessment of previous teaching experience and 
previous teacher preparation as required by Minnesota Rules, 
part 8700.5501. The board of teaching shall suspend application 
of Minnesota Rules, part 8700.5501, subpart 2, item F for 
teachers who provide evidence to the board of teaching of two 
years of teaching experience in a special education:  early 
childhood program setting, as verified by the employing district 
superintendent.  
    Subd. 2.  [REVIEW.] The board of teaching shall establish a 
review panel to review any disputes between the teacher and the 
institution relating to the assessment of previous teaching 
experience and previous teacher preparation.  The review panel 
shall consist of two licensed practitioners in the special 
education:  early childhood field; one special education:  early 
childhood specialist in the department of education, and one 
faculty member from a higher education institution offering an 
approved special education:  early childhood program.  The 
decision of the review panel shall be final.  
    Subd. 3.  [PROVISIONAL LICENSES.] All persons holding a 
provisional license in special education: early childhood, 
pursuant to Minnesota Rules, part 8700.5501, subpart 4, which is 
due to expire on July 1, 1984, may request an extension of the 
validity of the provisional license until July 1, 1985.  They 
shall submit the requests to the personnel licensing section of 
the department of education.  
    Sec. 46.  [REPORT ON VISION AND HEARING ASSESSMENT.] 
    By February 1, 1985, the departments of education and 
health shall report to the education committees of the 
legislature on the assessment of pupils' vision and hearing. 
These departments shall cooperate with one another and submit a 
joint report.  The report shall include a description of 
existing programs for screening and assessment of pupils, cost 
data on existing programs, evaluation of existing programs 
including cost analysis, and recommendations for improvement of 
existing programs or establishment of a new program to ensure 
that all pupils whose learning is affected by vision or hearing 
problems are identified, diagnosed, and treated.  
    Sec. 47.  [STUDY OF AMBIENT AIR TESTING.] 
    The department of education shall conduct a study to 
determine the feasibility of using ambient air testing as an 
indicator of asbestos exposure in schools.  If the department 
determines that ambient air testing is feasible in schools, it 
may contract for the development of ambient air standards to 
measure asbestos in schools.  
    Sec. 48.  [EARLY RETIREMENT APPLICATIONS; 1983-1984 SCHOOL 
YEAR.] 
    Any teacher who has submitted an application for an early 
retirement incentive pursuant to Minnesota Statutes, section 
125.611 in a timely manner during the 1983-1984 school year, 
whose application has been accepted by the commissioner of 
education prior to June 30, 1984, and who is eligible for a 
normal retirement annuity without reduction for age because the 
teacher's attained age plus credited allowable service totals 
85, shall have the option of accepting either the early 
retirement incentive pursuant to Minnesota Statutes, section 
125.611, or the normal retirement annuity without reduction for 
age because the teacher's attained age plus credited allowable 
service totals 85, but may not accept both.  The teacher shall 
notify the school board, the commissioner of education, and the 
appropriate retirement association of his or her decision by 
July 15, 1984.  
    Sec. 49.  [DESEGREGATION VARIANCE.] 
    The commissioner shall approve school desegregation plans 
that vary from the standard by up to an additional 15 percentage 
points if the local board can justify an educational reason for 
a variance to the state board from the comprehensive school 
desegregation plan submitted.  If the variance is approved by 
the commissioner, it may result in a school building exceeding 
50 percent minority enrollment if necessary.  
    Sec. 50.  [TASK FORCE ON SCHOOL BUS SAFETY.] 
    Subdivision 1.  [ESTABLISHMENT.] A task force on school bus 
safety is established.  The task force shall consist of up to 13 
members appointed by the commissioner of education.  The 
commissioner shall appoint at least one member from the 
Minnesota safety council and one member from the department of 
public safety.  The commissioner shall also appoint at least one 
school administrator and a person to represent parents with 
children who regularly ride the school bus.  The task force 
shall terminate by June 30, 1985.  
    Subd. 2.  [DUTIES.] The task force shall study school bus 
safety.  The study shall include at least the following issues:  
    (1) equipment and other safety features of school bus 
design, including seat belts, surface padding, and 
compartmentalization;  
    (2) proposals for mandatory installation and use of seat 
belts in school buses;  
    (3) relative population of school buses which are and are 
not subject to federal requirements for safety features;  
    (4) qualifications, training, examination, and licensing of 
school bus drivers;  
    (5) adequacy of school bus maintenance;  
    (6) current requirements and practices about school bus 
hauling distances;  
    (7) safety aspects of school bus pickup points; and 
    (8) instruction given to school children about safe 
boarding and departing procedures.  
    Subd. 3.  [EXPENSES.] The compensation of task force 
members, removal, and vacancies shall be as provided in section 
15.059, subdivisions 3 and 4.  
    Subd. 4.  [REPORT.] The task force shall report its 
findings and recommendations to the commissioner of education 
and the education committees of the legislature by December 1, 
1984.  
    Sec. 51.  [ADVISORY COUNCIL ON BARGAINING IMPASSE 
RESOLUTION.] 
    Subdivision 1.  There is created an advisory council on 
bargaining impasse resolution whose purpose shall be to study 
collective bargaining as it relates to public schools.  
    Subd. 2.  The advisory council shall consist of 11 members 
as follows:  two members of the senate appointed by the 
subcommittee on committees of the committee on rules and 
administration; two members of the house of representatives 
appointed by the speaker of the house; the director of the 
bureau of mediation services or a designee; and six members of 
the general public appointed by the governor.  The advisory 
council shall elect a chair from its membership.  The advisory 
council shall terminate on June 30, 1985.  
    Subd. 3.  By January 15, 1985, the advisory council shall 
submit to the legislative commission on employee relations its 
report and recommendations on the impasse resolution policies 
under Minnesota Statutes, sections 179.61 to 179.76 relating to 
public schools.  The advisory council shall study:  
    (1) existing provisions of state law relating to 
negotiations, mediation, and impasse resolution;  
    (2) attitudes of public employers and employees and the 
public on current collective bargaining laws relating to public 
schools;  
    (3) collective bargaining laws in other states relating to 
public schools;  
    (4) changes in statutory timelines and the right to strike; 
and 
    (5) collective bargaining rights and procedures relating to 
principals and assistant principals.  
    Subd. 4.  The legislative commission on employee relations 
shall provide staff for the advisory council.  Members who are 
legislators shall be compensated in the same manner as other 
legislative meetings.  The compensation of public members shall 
be governed by section 15.059, subdivision 3.  
    Sec. 52.  [FUND MERGER RECOMMENDATIONS.] 
    By January 1, 1985, the advisory council on uniform 
financial accounting and reporting standards shall make 
recommendations to the education committees of the legislature 
on the need for maintaining separate school district funds.  The 
recommendations shall include consideration of merging the 
general fund and capital expenditure fund.  
    Sec. 53.  [INSTRUCTION TO REVISOR.] 
    Subdivision 1.  [INTERMEDIATE SCHOOL DISTRICTS.] The 
revisor of statutes shall include in the next subsequent edition 
of Minnesota Statutes, and edit as authorized by law, the 
uncoded permanent law relating to Intermediate School District 
Nos. 287, 916, and 917.  
    Subd. 2.  [DESEGREGATION VARIANCE.] The revisor of statutes 
shall replace Minnesota Rules, part 3525.0700, first paragraph, 
second sentence, with section 49.  
    Subd. 3.  [MIDDLE SCHOOL LICENSURE.] The revisor of 
statutes shall change Minnesota Rules, part 8700.3400, subparts 
11 and 12, to agree with the extension made in section 44.  
    Sec. 54.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, section 125.60, 
subdivision 2a, is repealed.  Minnesota Statutes 1983 
Supplement, section 129B.041, subdivision 2, is repealed.  
    Subd. 2.  Section 28 is repealed on June 30, 1985.  
    Sec. 55.  [APPROPRIATION.] 
    Subdivision 1.  [BARGAINING IMPASSE STUDY.] The sum of 
$12,500 is appropriated for fiscal year 1985 from the general 
fund to the legislative commission on employee relations for the 
advisory council bargaining impasse resolution.  The sum is 
available until June 30, 1985.  
    Subd. 2.  [BUS SAFETY TASK FORCE.] The sum of $5,000 is 
appropriated for fiscal year 1985 from the general fund to the 
department of education for the task force on school bus 
safety.  The sum is available until June 30, 1985.  
    Subd. 3.  [ARTS EDUCATION REPORT.] The sum of $148,000 is 
appropriated for fiscal year 1985 from the general fund to the 
department of education for the purposes of section 41.  
    The department of education shall not expend $118,000 of 
this sum until it submits the report about establishing a 
Minnesota school for the arts to the chair of the senate 
education aids subcommittee and the chair of the house education 
finance division and receives their advisory recommendations on 
the school; failure or refusal to make a recommendation promptly 
is deemed a negative recommendation.  
    Subd. 4.  [AMBIENT AIR TESTING STUDY.] The sum of $10,000 
is appropriated for fiscal year 1985 from the general fund to 
the department of education for the study on ambient air 
testing.  This appropriation is available to match funds from 
other sources if the department contracts for the development of 
ambient air standards for measuring asbestos in schools.  The 
sum is available until June 30, 1985.  
    Sec. 56.  [EFFECTIVE DATES.] 
    Subdivision 1.  Sections 50, 51, and 55 are effective the 
day following final enactment.  
    Subd. 2.  Sections 3 and 21 are effective June 30, 1984.  
    Subd. 3.  Sections 11, 15, and 48 are effective only upon 
the effective date of a law passed by the 1984 legislature which 
makes a teacher employed by a school district eligible for a 
normal retirement annuity without reduction for age because the 
teacher's attained age plus credited allowable service totals 85.

                                ARTICLE 8
 TECHNOLOGY AND EDUCATIONAL IMPROVEMENT
    Section 1.  Minnesota Statutes 1983 Supplement, section 
121.601, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT.] The department 
commissioner of education shall establish maintain a program for 
providing in-service training to school district staff.  During 
the first year, the program shall provide in-service 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 in-service training programs shall be provided.  
In-service training programs shall be designed to emphasize the 
academic content of the subject area.  They shall also offer a 
broad spectrum of experiences, including activities which 
require active participant involvement rather than classroom 
lectures.  To the extent possible, the in-service training 
programs shall be integrated with the technology in-service 
training provided according to sections 129B.34 and 129B.35.  
    Subd. 2.  [NEED ASSESSMENT AND PLANNING GRANTS.] The 
commissioner shall determine the needs of pupils for a subject 
area using the statewide assessment program, before making 
subject area recommendations to the legislature.  The 
commissioner shall consult with teachers of the subject area to 
determine the needs of teachers.  
    Subd. 3.  [INITIAL PROPOSALS AND PLANNING GRANTS.] The 
commissioner shall request initial proposals from eligible 
organizations and institutions.  After reviewing the initial 
proposals, the commissioner may award up to 20 grants to develop 
proposals for final selection.  
    Subd. 2 4.  [FINAL PROPOSALS.] Grant Final 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 the subject matter 
knowledge 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 in-service 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 
in-service 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 5.  [ELIGIBLE APPLICANTS.] The department 
commissioner may allocate money award grants 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 in-service 
training according to this section.  When approving or 
disapproving awarding grants, the department commissioner shall 
ensure geographic accessibility of the programs to teachers 
throughout the state and a balance of programs available in 
different subject areas.  
    Subd. 4 6.  [CONSULTATION.] When making grants for the 
in-service training programs according to this section reviewing 
initial and final proposals, the department commissioner 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 7.  [PRIVATE ADDITIONAL 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 
in-service training programs in the designated subject areas. 
    Subd. 7 8.  [APPLICATION DATES.] Applications for 
in-service 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 commissioner 
shall determine the dates by which initial and final proposals 
are to be submitted.  The department commissioner shall approve 
or disapprove applications award grants each year by the 
following March 1.  
    Sec. 2.  Minnesota Statutes 1983 Supplement, section 
121.608, is amended to read: 
    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.  The plan shall be 
revised as necessary.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, section 
121.609, is amended to read:  
    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 June 30, 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 A preliminary evaluation, including a sample survey of 
district personnel trained at the pilot sites, to the 
commissioner shall be completed by January 1, 1985. 
    The commissioner, with the assistance of the advisory task 
force, shall develop a long-term evaluation instrument for use 
at the pilot sites and other districts utilizing the 
instructional effectiveness models.  The long-term evaluation 
instrument shall include a method for measuring student 
achievement.  
    Subd. 4.  [REGIONAL SERVICES.] The department of education 
shall contract with educational cooperative service units or 
other regional educational service agencies to provide 
assistance to the school districts in an educational cooperative 
service unit region in implementing instructional effectiveness 
models.  In selecting an agency to provide assistance to the 
school districts, the department shall consider such factors as 
support of the proposal by the participating school districts 
and the extent to which the proposal provides for participation 
by school district staff.  If more than one agency submits a 
proposal to provide services to school districts within an 
educational cooperative service unit region, the department 
shall encourage the agencies to develop a joint proposal.  
    Subd. 5.  [INSTRUCTIONAL EFFECTIVENESS TRAINING.] Utilizing 
the statewide plan developed pursuant to section 121.608 and the 
regional support services authorized in subdivision 4, the 
department of education shall provide instructional 
effectiveness training for school district staff.  The training 
shall be provided by building level leadership teams, as defined 
in the statewide plan developed pursuant to section 121.608. The 
training shall include clarification of individual school goals 
and expectations, enhancement of collaborative planning and 
collegial relationships among the building staff, improvement of 
instructional skills and instructional climate of the school, 
and planning of staff development programs.  
    Sec. 4.  Minnesota Statutes 1982, section 123.74, is 
amended to read: 
    123.74 [POLICY FINDINGS.] 
    The legislature finds that a process for curriculum 
evaluation and planning is needed for continued improvement of 
the educational program for all public school children in the 
state, and to allow for better evaluation of educational 
programs by local communities.  The legislature further finds 
that such a process is needed to facilitate decisions by school 
boards and communities as to which services can best be provided 
by the public schools and which services can or should be 
provided by other institutions such as the family, the private 
sector or other public agencies.  The legislature further finds 
that efficient use of educational resources is needed with 
regard to educational technology and interdistrict cooperation.  
    Sec. 5.  Minnesota Statutes 1982, section 123.741, as 
amended by Laws 1983, chapter 314, article 8, section 9, is 
amended to read: 
    123.741 [EDUCATION POLICY; CURRICULUM ADVISORY COMMITTEES 
PLANNING, EVALUATION, AND REPORTING PROCESS.] 
    Subdivision 1.  The school board of each school district in 
the state shall develop and adopt a written educational 
planning, evaluation, and reporting policy which establishes 
educational instructional goals and measurable learner 
objectives 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 identify annual 
instructional goals and measurable learner objectives to be 
addressed during the current school year.  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. 
    Subd. 2.  The school board shall instruct the 
administrative and professional staff of the district to develop 
an instructional plan for the purpose of implementing the goals 
established in the district educational policy within resources 
available to the district.  Insofar as possible the 
instructional plan shall include measurable instructional 
objectives to assist in directing and measuring progress toward 
the goals established in the district educational policy.  For 
goals toward which progress is not easily measurable, the 
instructional plan shall include other appropriate means to 
direct and evaluate progress The school board shall instruct the 
administrative and professional staff of the district to develop 
an instructional plan for the purpose of implementing the 
instructional goals established in the district planning, 
evaluation, and reporting policy within the resources available 
to the district.  To the extent possible, the instructional plan 
shall include instructional effectiveness processes developed 
pursuant to section 121.608 and integration of curriculum and 
technology developed under section 129B.33, to assist in 
directing and measuring progress toward the instructional goals 
established in the district planning, evaluation, and reporting 
policy.  For instructional goals toward which progress is not 
easily measurable, the instructional plan shall include other 
appropriate means to direct and evaluate progress.  
    Subd. 3.  Each school board is encouraged to appoint shall 
establish a curriculum advisory committee to provide for active 
community participation in the process of developing and 
revising the district educational planning, evaluation, and 
reporting policy, developing the instructional plan, identifying 
the annual instructional goals and measurable learner 
objectives, evaluating progress, and reporting to the public.  
The advisory committee shall be broadly representative of the 
community served by the school district and shall include 
administrative staff, teachers, parents, and other community 
residents of the district.  To the extent possible, parents and 
other community residents shall comprise at least two-thirds of 
the advisory committee.  
    Subd. 4.  Each year a final evaluation of progress shall be 
conducted, including both professional and consumer 
evaluations.  The professional staff evaluation shall utilize 
test results and may include other performance data along with 
faculty interpretations and judgments.  Test results shall 
include local assessment data obtained pursuant to section 6, 
subdivision 2.  A consumer evaluation shall include the opinions 
of students, parents and other residents of the community served 
by the school district.  
    Subd. 5.  Upon receipt of After completing the annual 
evaluation reports, each the school board shall review the 
results and develop and adopt appropriate school district 
improvement plans to improve areas where goals of the district 
educational policy have not been met.  The school district 
improvement plans shall describe actions to be taken by the 
district to correct any weakness evident from the results of the 
district evaluation process.  
    Subd. 5 6.  The district educational policy, the reports of 
the annual evaluation including summary test results, and the 
plans for school improvement shall be made available to the 
citizens of the school district through media releases and other 
means of communicating with the public.  These documents By 
September 1 of each year, the local school board shall adopt a 
report which shall include the following:  
    (a) annual instructional goals which were addressed for 
that year in the planning, evaluation, and reporting process;  
    (b) appropriate evaluation of the annual instructional 
goals;  
    (c) the results of the professional staff evaluation 
including local assessment data obtained pursuant to section 6, 
subdivision 2, and any additional appropriate test data;  
    (d) the results of the consumer evaluation; and 
    (e) the annual school district improvement plans.  
    Every other year the report shall include an evaluation of 
the assessment program pursuant to subdivision 7.  
    The school board shall disseminate the report to all 
residents of the district by publication in the local newspaper 
with the largest circulation in the district, by newsletter, or 
through the United States postal service.  The report shall also 
be on file and available for inspection by the public.  A 
information copies copy of the reports report which is 
disseminated to the community shall be sent to the state board 
of education commissioner of education by September 1 of each 
year.  All activities and reports pursuant to this section shall 
comply with chapter 13, and any other law governing data on 
individuals in school districts. 
    Subd. 7.  [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 
least once every two years the school board shall evaluate the 
testing program, using the following criteria:  
    (a) written objectives of the testing program;  
    (b) names of tests and grade levels tested; and 
    (c) utilization of test results.  
    Sec. 6.  Minnesota Statutes 1982, section 123.742, as 
amended by Laws 1983, chapter 258, section 26, is amended to 
read: 
    123.742 [ASSISTANCE TO LOCAL SCHOOL DISTRICTS; ASSESSMENT 
PROGRAMS.] 
    Subdivision 1.  [TECHNICAL ASSISTANCE.] Insofar as 
possible, the state board department of education and 
educational cooperative service units shall make technical 
assistance for planning and evaluation available to school 
districts upon request.  The department shall collect the annual 
evaluation reports from local districts as provided in section 
123.741, subdivision 5, and shall make this data available upon 
request to any district seeking to use it for purposes of 
comparisons of student performance. 
    Subd. 2.  [LOCAL ASSESSMENT PROGRAM.] Beginning in the 
1984-1985 school year, as part of the planning, evaluation, and 
reporting process, each school district shall conduct an 
assessment program, utilizing the local assessment option 
developed by the state department of education.  Every year each 
school district shall conduct an assessment for at least one 
curriculum area in at least three grade levels.  
    Subd. 3.  [PARTICIPATION IN STATEWIDE ASSESSMENT PROGRAM.] 
Beginning in the 1984-1985 school year, each school district 
shall participate in the statewide assessment sampling process 
at least once every three years to provide normative data.  The 
department of education shall determine which districts shall 
participate and which curriculum areas shall be assessed in a 
given school year.  
    Subd. 4.  [NEEDS OF HANDICAPPED PUPILS.] School boards are 
encouraged to consider the needs of handicapped students in 
determining the extent of their participation in the assessment 
programs in subdivisions 2 and 3.  The district policy may 
provide for modifications in the testing procedures for 
handicapped students.  
    Subd. 5.  [ASSESSMENT ITEM BANK.] The department of 
education shall develop an assessment item bank for the purpose 
of providing assessment programs to individual districts which 
are tailored to the specific educational objectives of the 
district.  Beginning in the 1984-1985 school year and each year 
thereafter, the department shall develop an item bank for at 
least two curriculum areas each year.  The department shall 
develop an item bank for at least ten different curriculum areas.
    Subd. 6.  [ADDITIONAL TESTING.] The department upon written 
agreement with local school districts may perform additional 
testing and evaluation of students.  The department may collect 
a reasonable fee not to exceed the actual cost of services. 
    Subd. 3 7.  [CURRICULUM INFORMATION.] The department may 
provide available curriculum information for improving teaching 
practices at public elementary, secondary and post-secondary 
vocational schools.  The information may be provided upon the 
request of a school district or an educational cooperative 
service unit with which the department has a written agreement.  
The department may collect reasonable fees not to exceed its 
actual costs for this service.  The department may also accept 
money from any public or private source to defray the cost of 
this service.  
    Subd. 4 8.  [CAREER INFORMATION.] The department of 
education may provide career information to school districts and 
educational systems.  The department may collect reasonable fees 
for subscriptions to the Minnesota career information service.  
    Sec. 7.  Minnesota Statutes 1983 Supplement, section 
123.743, is amended to read: 
    123.743 [APPROPRIATION.] 
    There is annually appropriated from the general fund to the 
department of education any and all amounts received by the 
department pursuant to section 123.742, subdivisions 2 6, 3 7, 
and 4 8. 
    Sec. 8.  [123.7431] [AID FOR PLANNING, EVALUATION, AND 
REPORTING PROCESS.] 
    Subdivision 1.  [ELIGIBILITY.] Each school district which 
completes the planning, evaluation, and reporting process 
pursuant to the requirements of sections 123.741 and 123.742 and 
which receives approval from the commissioner of education is 
eligible to receive state aid.  An eligible school district 
shall receive $1 times average daily membership for the 
applicable school year.  No district which is eligible for aid 
shall receive less than $1,500.  
    Subd. 2.  [PAYMENT OF AID.] The department of education 
shall pay aid to a district within 30 days of approving the 
district's planning, evaluation, and reporting process.  
    Sec. 9.  [129B.10] [RESEARCH AND DEVELOPMENT GRANTS.] 
    Subdivision 1.  [PURPOSE.] The purpose of this section is 
to support research on alternative educational structures and 
practices within public schools and to develop alternatives that 
are based on research.  
    Subd. 2.  [ADVISORY TASK FORCE.] The council on quality 
education shall appoint an advisory task force on research and 
development for alternative educational structures and 
practices.  The advisory task force shall consist of at least 11 
members.  All members shall have knowledge and experience in 
educational research, educational administration, or teaching. 
The advisory task force shall assist the council in carrying out 
its responsibilities under this section.  The terms, 
compensation, and removal of members shall be governed by the 
provisions of section 15.059, subdivision 6.  
    Subd. 3.  [RESEARCH AND DEVELOPMENT SUBJECTS.] The council 
shall select subjects for research and development focusing on 
alternative educational structures and practices.  The subjects 
may include, but are not limited to, the following:  
    (1) school site management;  
    (2) development of individualized education plans for all 
students;  
    (3) alternative staff compensation plans;  
    (4) alternative educational delivery systems;  
    (5) outcome based education; and 
     (6) provision of educational programs in school districts 
by contracting with professional partnerships composed of 
licensed teachers.  
    Subd. 4.  [PRELIMINARY STUDIES.] The council shall contract 
for preliminary studies to assist it in establishing research 
and development needs and selecting subjects for proposals. 
Preliminary studies shall include recommendations for evaluation 
procedures which the council may use if the council issues a 
grant for research and development in that particular subject.  
    Subd. 5.  [REPORT TO LEGISLATURE; SUBJECTS.] By February 1, 
1985, the council shall report to the education committees of 
the legislature on the research needs that the council has 
identified, the recommended subjects for proposals, and the 
potential need for changes in rules and laws to facilitate the 
research and development programs.  The report shall include 
specific proposals for independent evaluation of research and 
development programs which will be funded under the provisions 
of this section.  The legislature shall consider the 
recommendations of the council in determining the appropriation 
for grants to be disbursed under the provisions of this section. 
    Subd. 6.  [RESEARCH AND DEVELOPMENT GRANTS.] By June 1, 
1985, the council shall request proposals on three to six 
research and development subjects.  Each request for proposals 
shall state the method by which a funded program will be 
evaluated.  By September 1, 1985, the council shall review the 
proposals it receives and award grants.  
    Subd. 7.  [REPORT TO LEGISLATURE; RESEARCH REPORTS.] By 
February 1, 1988, the council shall report to the education 
committees of the legislature.  The report shall include the 
council's evaluation of each research and development program, 
recommendations for institutional changes in the structure of 
elementary and secondary education, and recommendations for 
other ways of improving elementary and secondary education.  
    Sec. 10.  Minnesota Statutes 1983 Supplement, section 
129B.32, subdivision 3, is amended to read: 
    Subd. 3.  [COURSEWARE PACKAGE.] "Courseware package" means 
integrated videotape and videodisk, computer disk, and software 
and its, supporting materials, such as workbooks and textbooks, 
and other computer support hardware that is an integral part of 
an educational software package, such as a printed circuit 
board, voice synthesizer which enables speech production and its 
speaker, tap master, valve simulator, and digital to analog 
converter board.  It does not mean a central processing unit, 
disk drive, video monitor, printer, or similar items.  
    Sec. 11.  Minnesota Statutes 1983 Supplement, section 
129B.36, subdivision 7, is amended to read: 
    Subd. 7.  [EVALUATION OF SITES.] The state board advisory 
committee shall evaluate the technology demonstration sites.  It 
may contract with independent evaluators for this purpose. 
    Sec. 12.  [SHARED FACILITIES REPORT.] 
    The commissioner of education shall collect information on 
and evaluate methods for sharing public school facilities with 
other organizations including government agencies, social 
service agencies, and other nonprofit and for-profit 
organizations.  By January 1, 1985, the commissioner shall 
prepare a written report and make it available in published form 
to school districts and other interested persons.  In developing 
this report the commissioner shall consult with persons in 
school districts in Minnesota and other states that are sharing 
facilities.  
    Sec. 13.  [STUDY OF TEACHER EDUCATION.] 
    Subdivision 1.  [HIGHER EDUCATION COORDINATING BOARD.] The 
higher education coordinating board shall conduct a study, in 
cooperation with the board of teaching, of teacher education 
programs in public and private institutions of higher 
education.  The study shall result in a report and 
recommendations on the number, enrollment, mission, and location 
of all teacher education programs.  The report shall include 
information and recommendations on the need for in-service 
education and the relationship of in-service, preservice, and 
graduate education.  It shall also include information and 
recommendations for improving the quality and efficiency of 
teacher education programs by the use of standardized tests for 
beginning teachers, alternative methods of teacher preparation 
and licensure, and other means.  The report shall be submitted 
to the education committees of the legislature by January 1, 
1985.  
    Subd. 2.  [FACTORS.] In developing its recommendations, the 
higher education coordinating board shall consider factors 
including, but not limited to:  
    (a) the existing pool of licensed but inactive teachers;  
    (b) the demand for teachers in preschool, elementary, and 
secondary education;  
    (c) the number of teacher education programs and the annual 
number of graduates;  
    (d) admission criteria for teacher education programs;  
    (e) access of students to special or unique programs;  
    (f) procedures for licensing qualified, unlicensed 
individuals;  
    (g) the feasibility of modifying state criteria for teacher 
licensure;  
    (h) teacher preparation and licensure procedures in other 
states;  
    (i) available information about the use and effectiveness 
of standardized tests for beginning teachers; and 
    (j) possible alternative methods for licensure such as an 
undergraduate degree in a subject area plus an extended 
internship program.  
    Sec. 14.  [COOPERATION OF BOARDS AND INSTITUTIONS.] 
    All higher education governing boards and public and 
private institutions are requested to cooperate fully with the 
higher education coordinating board in the preparation of the 
teacher education study, pursuant to section 136A.05.  
    Sec. 15.  [SCHOOL MANAGEMENT TASK FORCE.] 
    Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
education shall appoint a task force to make recommendations 
about an assessment center and in-service training for 
principals and assistant principals.  The task force shall 
consist of 13 members.  One member shall be from the elementary 
school principals association, one member shall be from the 
secondary school principals association, one member shall 
represent the educational cooperative service units, and one 
member shall be from each of the following organizations: 
Minnesota association of school administrators, Minnesota school 
boards association, administrative women in education, Minnesota 
federation of teachers, and Minnesota education association. The 
commissioner shall appoint a member from the University of 
Minnesota or from another institution with a teacher preparation 
program, or both.  Members of the task force shall receive 
expenses in the same manner and amount as state employees.  The 
task force shall terminate on January 1, 1986.  
    Subd. 2.  [DUTIES.] The task force shall make 
recommendations to the commissioner of education about the types 
of in-service training that are needed and how to provide 
effective in-service training for principals.  The task force 
shall also make recommendations to the commissioner about an 
assessment center, including the costs of operation, staffing, 
manner of operation, services to be provided, fees for school 
districts, and other matters.  The assessment center shall be 
located at the University of Minnesota.  
    Sec. 16.  [SUMMER INSTITUTE STUDY.] 
    The academic excellence foundation shall report to the 
education committees of the legislature by January 15, 1985, on 
the availability of and need for summer institutes at or 
conducted by post-secondary institutions for secondary students 
who are outstanding in the areas of mathematics, science, and 
foreign languages.  
    Sec. 17.  [DEPARTMENT OF EDUCATION APPROPRIATIONS.] 
    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 IN-SERVICE TRAINING.] The sum of 
$270,000 is appropriated for subject area in-service training, 
according to section 121.601.  This appropriation is in addition 
to the $500,000 appropriated to provide subject area in-service 
training by Laws 1983, chapter 314, article 8, section 26, 
subdivision 2.  
    (a) Of the sum, $210,000 shall be used for grants for 
in-service training in the following:  
    Math........................$ 65,000 
    Science.....................$105,000 
    Social Studies..............$ 40,000 
    The in-service training shall emphasize academic content in 
each of the subject areas.  The grants shall be in addition to 
those awarded in fiscal 1984.  
    (b) The remaining $60,000 shall be for the department to 
assess future needs for subject area in-service training and for 
planning grants.  The assessment and planning grants shall 
emphasize the academic content of the subject area.  
    Subd. 3.  [INSTRUCTIONAL EFFECTIVENESS; EVALUATION 
INSTRUMENT.] The sum of $250,000 is appropriated for the 
development of the training models specified in section 121.609, 
subdivision 4, as amended, and for the development of a 
long-term evaluation instrument pursuant to section 121.609, 
subdivision 3.  
    Subd. 4.  [INSTRUCTIONAL EFFECTIVENESS; REGIONAL SERVICES.] 
The sum of $330,000 is appropriated for the purposes of section 
121.609, subdivision 4, as amended.  The department shall 
allocate this appropriation to the educational cooperative 
service unit regions based on a formula that takes into account 
the number of school buildings, number of participating staff, 
and geographic distance between the service provider and the 
participating school districts.  Any educational cooperative 
service unit or other provider agency receiving funds pursuant 
to this section shall match the funds with an amount equal to 25 
percent of the allocation.  
    Subd. 5.  [INSTRUCTIONAL EFFECTIVENESS; TRAINING.] The sum 
of $250,000 is appropriated for the purposes of section 121.609, 
subdivision 5, as amended.  This amount shall be used to pay for 
the costs of providing instructional effectiveness training to 
school district staff, including the costs of stipends or 
substitute teachers.  
    Subd. 6.  [INSTRUCTIONAL EFFECTIVENESS ADMINISTRATION.] The 
sum of $70,000 is appropriated for the purposes of administering 
the instructional effectiveness program.  
    Subd. 7.  [SHARED FACILITIES REPORT.] The sum of $10,000 is 
appropriated for the purposes of preparing a report on methods 
for sharing public school facilities.  
    Subd 8.  [RESEARCH AND DEVELOPMENT GRANTS.] The sum of 
$150,000 is appropriated for the council on quality education 
for the research and development grant program authorized in 
section 9.  No more than $80,000 of this appropriation shall be 
used for staff expenses.  The department of education may 
increase its authorized complement for the council on quality 
education until June 30, 1985, by one professional and one 
clerical position to provide support for the grant program.  At 
least $50,000 of this appropriation shall be used for contracts 
for preliminary studies.  
    Subd. 9.  [SCHOOL MANAGEMENT.] The sum of $25,000 is 
appropriated for school management.  Of this sum $10,000 is for 
the school management task force.  The remaining $15,000 is to 
be used by the commissioner of education for initial 
administrative costs in establishing an assessment center.  
    Subd. 10.  [LOCAL ASSESSMENT PROGRAM.] The sum of $575,000 
is appropriated for fiscal year 1985 for the purposes of 
implementing the requirements of section 6, subdivision 2.  The 
department may use up to $200,000 of the appropriation for 
initial costs of establishing the program.  The department may 
use up to $150,000 to increase the staff complement in the 
assessment section, $50,000 of which shall be used for one 
additional professional position.  The remaining $100,000 is 
available for three positions in the assessment section and 
associated expenses currently funded with federal block grant 
dollars.  This $100,000 shall not be released until the 
commissioner of education has verified to the commissioner of 
finance that federal funding for these positions is no longer 
available and has not been transferred to another section in the 
department.  In the event of a transfer from federal to state 
funding, the complement for the affected positions is also 
transferred from federal to state status.  
    Subd. 11.  [DEVELOPMENT OF TEST ITEM BANK.] The sum of 
$320,000 is appropriated for fiscal year 1985 for the purposes 
of section 6, subdivision 5.  The department may use up to 
$80,000 of the appropriation to increase the state complement by 
two positions in the assessment section.  
    Subd. 12.  [PLANNING, EVALUATION, AND REPORTING PROCESS.] 
The sum of $1,020,000 is appropriated for fiscal year 1985 for 
the purposes of section 8.  Any unexpended balance remaining 
from this appropriation for fiscal year 1985 shall not cancel 
but shall be available for use in fiscal year 1986 until 
November 1, 1985.  
    Subd. 13.  [TECHNOLOGY DEMONSTRATION SITES.] The sum of 
$581,000 is appropriated to fund the technology demonstration 
site proposals under Minnesota Statutes, section 129B.36, which 
were the first, second, third, 12th, and 15th highest proposals 
rated by the advisory committee on technology in education.  The 
grants awarded to each of the districts submitting these 
proposals shall be for use during the 1983-1984 and 1984-1985 
school years and shall not exceed the actual amount of the grant 
proposal submitted to the state board of education or $125,000, 
whichever is less.  
    Sec. 18.  [HECB APPROPRIATION.] 
    The sum of $20,000 is appropriated from the general fund to 
the higher education coordinating board to conduct a study of 
teacher education programs.  A portion of this sum may be used 
for consultants.  The sum shall be available until June 30, 1985.
    Sec. 19.  [EFFECTIVE DATE.] 
    Sections 1, 2, 3, 9, 12, 13, 14, 15, 17, and 18 are 
effective the day following final enactment. 

                               ARTICLE 9 

                               CASH FLOW 
    Section 1.  Minnesota Statutes 1983 Supplement, section 
121.904, subdivision 4a, is amended to read: 
    Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
settlement revenue" means the current, delinquent, and 
manufactured home property tax receipts collected by the county 
and distributed to the school district, including distributions 
made pursuant to section 279.37, subdivision 7, and excluding 
the amount levied pursuant to 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 plus 32 percent of the amount of the 
levy certified in the prior calendar year according to section 
275.125, subdivision 2d, plus or minus auditor's adjustments, 
not including levy portions that are assumed by the state; or 
    (3) thirty-two percent of the amount of the levy certified 
in the prior calendar year, plus or minus auditor's adjustments, 
not including levy portions that are assumed by the state, which 
remains after subtracting, by fund, the amounts levied for the 
following purposes:  
    (i) reducing or eliminating projected deficits in the 
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; 
and 
    (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.  Minnesota Statutes 1982, section 121.904, is 
amended by adding a subdivision to read: 
    Subd. 4c.  [PROPERTY TAX SHIFT REDUCTION.] (a) For the 
purpose of this subdivision, "combined fund balance" means the 
sum of the fund balance determined by the commissioner of 
finance pursuant to section 9 of this article, after transfers 
to the education aids increase account, plus the balance in the 
education aids increase account.  
    (b) If the combined fund balance exceeds $58,000,000, the 
levy recognition percent specified in subdivision 4a, clauses 
(b)(2) and (b)(3), shall be reduced for taxes payable in 1985 
and thereafter according to the provisions of this subdivision.  
    (c) The levy recognition percent shall equal the result of 
the following computation:  32 percent, times the ratio of 
    (1) the statewide total amount of levy recognized in June 
1985 pursuant to subdivision 4a, clause (b), reduced by the 
amount of the combined fund balance in excess of $50,000,000, to 
    (2) the statewide total amount of the levy recognized in 
June 1985 pursuant to subdivision 4a, clause (b).  
    The result shall be rounded up to the nearest whole percent.
However, in no case shall the levy recognition percent be 
reduced below 24 percent.  
    Sec. 3.  Minnesota Statutes 1983 Supplement, section 
124.155, subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Beginning with In 
fiscal year 1984 and each year thereafter, state aids and 
credits enumerated in subdivision 2 payable to any school 
district in a particular fiscal year for that fiscal year shall 
be adjusted, in the order listed, by an amount equal to (1) the 
amount the district recognized as revenue for the prior fiscal 
year pursuant to section 121.904, subdivision 4a, clause (b), as 
amended by Laws 1982, third special session chapter 1, article 
3, section 1; minus (2) the amount the district recognizes as 
revenue for the current fiscal year pursuant to section 121.904, 
subdivision 4a, clause (b), as amended by Laws 1982, third 
special session chapter 1, article 3, section 1.  Any loan 
amount authorized from the cash flow loan fund or For the 
purposes of making the aid adjustment under this subdivision, 
the amount the district recognizes as revenue for either the 
prior fiscal year or the current fiscal year pursuant to section 
121.904, subdivision 4a, clause (b), shall not include any 
amount levied pursuant to section 275.125, subdivision 2d.  
Payment from the permanent school fund shall not be adjusted 
pursuant to this section.  The school district shall be notified 
of the amount of the adjustment made to each payment pursuant to 
this section.  
    Sec. 4.  Minnesota Statutes 1983 Supplement, section 
124.195, subdivision 1, is amended to read: 
    Subdivision 1.  [APPLICABILITY.] This section applies to 
all aids or credits paid by the commissioner of education from 
the general fund of the state of Minnesota to school districts 
except as provided in section 124.5629.  The procedures 
described in this section for making disbursements to school 
districts will be used starting in fiscal year 1984, except that 
for districts that have tax anticipation certificates or aid 
anticipation certificates which were sold prior to June 30, 
1983, and which mature prior to June 30, 1984, the payment 
schedules specified in Minnesota Statutes 1982 may continue to 
be used in fiscal year 1984 if the school district provides 
evidence to the commissioner of education that the payment 
schedules established in this section would jeopardize repayment 
of these certificates or prevent the district from making 
payments for other services without additional borrowing.  
    Sec. 5.  Minnesota Statutes 1983 Supplement, section 
124.195, subdivision 9, is amended to read: 
    Subd. 9.  [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] The 
following aids shall be paid at 100 percent of the entitlement 
for the current fiscal year:  school lunch aid, according to 
section 124.646; teacher institute aid, campus laboratory school 
aid, and high technology aids hearing impaired support services 
aid, according to section 121.201; and educational improvement 
aids, according to sections 121.601, 129B.33, 129B.34, and 
129B.36. 
    Sec. 6.  Minnesota Statutes 1983 Supplement, section 
124.195, is amended by adding a subdivision to read: 
    Subd. 11.  [NONPUBLIC AIDS.] The state shall pay to each 
school district 85 percent of its aid for pupils attending 
nonpublic schools, according to sections 123.931 to 123.947 by 
December 31.  The final aid distribution shall be made by 
December 31 of the following school year.  
    Sec. 7.  Minnesota Statutes 1982, section 475.61, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEBT SERVICE RESOLUTION.] The governing 
body of any municipality issuing general obligations shall, 
prior to delivery of the obligations, levy by resolution a 
direct general ad valorem tax upon all taxable property in the 
municipality to be spread upon the tax rolls for each year of 
the term of the obligations.  The tax levies for all years for 
municipalities other than school districts shall be specified 
and such that if collected in full they, together with estimated 
collections of special assessments and other revenues pledged 
for the payment of said obligations, will produce at least five 
percent in excess of the amount needed to meet when due the 
principal and interest payments on the obligations.  The tax 
levies for school districts shall be specified and such that if 
collected in full they, together with estimated collection of 
other revenues pledged for the payment of the obligations, will 
produce between five and six percent in excess of the amount 
needed to meet when due the principal and interest payments on 
the obligations; except that, with the permission of the 
commissioner of education, a school board may specify a tax levy 
in a higher amount if necessary because of either to meet an 
anticipated tax delinquency or for cash flow needs to meet the 
required payments from the debt redemption fund.  Such 
resolution shall irrevocably appropriate the taxes so levied and 
any special assessments or other revenues so pledged to the 
municipality's debt service fund or a special debt service fund 
or account created for the payment of one or more issues of 
obligations.  The governing body may, in its discretion, at any 
time after the obligations have been authorized, adopt a 
resolution levying only a portion of such taxes, to be filed, 
assessed, extended, collected, and remitted as hereinafter 
provided, and the amount or amounts therein levied shall be 
credited against the tax required to be levied prior to delivery 
of the obligations. 
    Sec. 8.  Minnesota Statutes 1983 Supplement, 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 redemption fund of a school district at the time 
the district makes its property tax levies, the amount of the 
excess shall be certified by the school board to the county 
auditor and the auditor shall reduce the tax levy otherwise to 
be included in the rolls next prepared by the amount certified, 
unless the 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 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 or for cash flow needs to meet the 
required payments from the debt redemption fund. 
    If the governing body, including the governing body of a 
school district, in any year makes an irrevocable appropriation 
to the debt service fund of 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. 9.  [EDUCATION AIDS INCREASE ACCOUNT.] 
    Subdivision 1.  [ESTABLISHMENT.] There is established an 
education aids increase account in the general fund of the state 
treasury for the deposit of funds to insure adequate funding for 
increases in aids to school districts for the biennium beginning 
July 1, 1985.  
    Subd. 2.  [INITIAL TRANSFER.] The commissioner of finance 
shall transfer $23,000,000 to the education aids increase 
account on July 1, 1984.  
    Subd. 3.  [CONTINGENT TRANSFERS.] If forecasts of general 
fund revenues and expenditures prepared by the commissioner of 
finance pursuant to chapter 16A prior to December 1, 1984, 
indicate a projected general fund balance for the biennium 
ending June 30, 1985, the commissioner shall transfer the amount 
of the balance to the education aids increase account; however, 
in no case shall the cumulative total of all transfers according 
to this subdivision exceed $27,000,000.  Transfers to the 
education aids increase account shall remain in the account 
until expended.  
    Subd. 4.  [EXPIRATION OF ACCOUNT.] The education aids 
increase account shall expire on June 30, 1987.  Any unexpended 
moneys in the education aids increase account on June 30, 1987, 
shall be transferred to the general fund.  
    Sec. 10.  [CERTIFICATION AND NOTICE OF PERCENT.] 
    The commissioner of finance shall certify to the 
commissioner of education the levy recognition percent computed 
under section 2 of this article by January 5, 1985.  The 
commissioner of education shall notify school districts of any 
change by January 15, 1985.  
    Sec. 11.  [TRANSFER IN FISCAL YEAR 1985 FOR ADDITIONAL 
AIDS.] 
    The commissioner of finance shall transfer from the general 
fund to the education aids appropriations specified by the 
commissioner of education, the amounts needed to finance the 
additional payments required because of the reduction pursuant 
to section 2 of this article of the levy recognition percentage 
in Minnesota Statutes, section 121.904, subdivision 4c. Payments 
to a school district of additional state aids resulting from a 
reduction in the levy recognition percentage pursuant to section 
2 of this article, shall be added to the cash metering system, 
according to Minnesota Statutes, section 124.195, after January 
15, 1985, and shall be paid in a manner consistent with the 
percentage specified in that section.  
    Sec. 12.  [CASH FLOW EVALUATION.] 
    The commissioner of finance, in cooperation with the 
commissioner of education and the Minnesota association of 
school business officials, shall evaluate the impact on school 
districts of the cash flow provisions of Minnesota Statutes, 
chapter 124.  The commissioner shall report the findings, along 
with recommendations, to the education committees of the 
legislature by February 15, 1985.  
    Sec. 13.  [REPEALER.] 
    Minnesota Statutes 1982, sections 124.246, subdivision 5; 
124.26, subdivision 5; 124.572, subdivision 8a; 124.573, 
subdivision 6; and 124.574, subdivision 8, are repealed. 
Minnesota Statutes 1983 Supplement, sections 124.225, 
subdivision 12; and 124.271, subdivision 6, are repealed.  
    Sec. 14.  [APPROPRIATION.] 
    The appropriation for payment of support services for 
hearing impaired persons, according to Laws 1983, chapter 314, 
article 3, section 19, subdivision 8, for fiscal year 1985 is 
increased by $6,000, from $37,000 to $43,000.  
    Sec. 15.  [EFFECTIVE DATE.] 
    Sections 1 and 9 are effective the day following final 
enactment.  Section 3 is effective the day following final 
enactment and shall apply to the adjustment made pursuant to 
Minnesota Statutes, section 124.155 in fiscal year 1984 and 
thereafter. 
    Approved April 24, 1984

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