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1992 Minnesota Session Laws

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                         Laws of Minnesota 1992 

                        CHAPTER 499-H.F.No. 2121 
           An act relating to education; providing for general 
          education revenue, transportation, special programs, 
          community services, facilities and equipment, 
          education organization and cooperation, other aids and 
          levies, other education programs, miscellaneous 
          education matters, libraries, state education 
          agencies; imposing a tax; modifying appropriations; 
          appropriating money; amending Minnesota Statutes 1990, 
          sections 120.17, subdivisions 2, 3a, 8a, 16, and by 
          adding a subdivision; 121.148, subdivision 3; 121.16, 
          subdivision 1; 121.935, by adding a subdivision; 
          122.23, subdivisions 12, 13, 13a, and 16; 122.241, 
          subdivision 3; 122.247, subdivision 1; 122.531, 
          subdivisions 1a, 2, 2a, 2b, 2c, and by adding 
          subdivisions; 122.532, subdivision 2; 123.33, 
          subdivision 7; 123.35, by adding a subdivision; 
          123.3514, subdivisions 6, as amended, as reenacted, 
          6b, as amended, as reenacted, and by adding 
          subdivisions; 123.39, subdivision 8d; 123.58, by 
          adding a subdivision; 123.744, as amended, as 
          reenacted; 124.155, subdivision 1; 124.243, 
          subdivisions 2, 6, and by adding a subdivision; 
          124.244, subdivision 1; 124.2725, subdivisions 13 and 
          14; 124.331, subdivisions 1 and 3; 124.431, by adding 
          a subdivision; 124.493, subdivision 1; 124.494, 
          subdivisions 2, 4, and 5; 124.85, subdivision 4; 
          124A.22, subdivision 2a, and by adding subdivisions; 
          124A.23, subdivision 3; 124A.26, subdivision 2, and by 
          adding a subdivision; 124C.07; 124C.08, subdivision 2; 
          124C.09; 124C.61; 125.05, subdivisions 1, 7, and by 
          adding subdivisions; 125.12, by adding a subdivision; 
          125.17, by adding a subdivision; 125.18, subdivision 
          1; 126.22, by adding a subdivision; 127.46; 128A.09, 
          subdivision 2, and by adding a subdivision; 128C.01, 
          subdivision 4; 128C.02, by adding a subdivision; 
          134.34, subdivision 1, and by adding a subdivision; 
          136C.69, subdivision 3; 136D.22, subdivision 1; 
          136D.27, subdivision 2; 136D.74, subdivision 2a; 
          136D.75; 136D.82, subdivision 1; 136D.87, subdivision 
          2; 205A.10, subdivision 2; and 275.125, subdivision 
          14a, and by adding subdivisions; Minnesota Statutes 
          1991 Supplement, sections 13.40, subdivision 2; 
          120.062, subdivision 8a; 120.064, subdivision 4; 
          120.17, subdivisions 3b, 7a, and 11a; 120.181; 
          121.585, subdivision 3; 121.904, subdivisions 4a and 
          4e; 121.912, subdivision 6; 121.932, subdivisions 2 
          and 5; 121.935, subdivisions 1 and 6; 122.22, 
          subdivision 9; 122.23, subdivision 2; 122.242, 
          subdivision 9; 122.243, subdivision 2; 122.531, 
          subdivision 4a; 123.3514, subdivisions 4 and 11; 
          123.702, subdivisions 1, 1a, 1b, and 3; 124.155, 
          subdivision 2; 124.19, subdivisions 1 and 7; 124.195, 
          subdivisions 2 and 3a; 124.214, subdivisions 2 and 3; 
          124.2601, subdivision 6; 124.2605; 124.2615, 
          subdivision 2; 124.2721, subdivision 3b; 124.2727, 
          subdivision 6, and by adding a subdivision; 124.479; 
          124.493, subdivision 3; 124.646, subdivision 4; 
          124.84, subdivision 3; 124.95, subdivisions 1, 2, 3, 
          4, 5, and by adding a subdivision; 124A.03, 
          subdivisions 1c, 2, 2a, and by adding a subdivision; 
          124A.23, subdivisions 1 and 4; 124A.24; 124A.26, 
          subdivision 1; 124A.29, subdivision 1; 125.185, 
          subdivisions 4 and 4a; 125.62, subdivision 6; 126.23; 
          126.70; 136D.22, subdivision 3; 136D.71, subdivision 
          2; 136D.72, subdivision 1; 136D.76, subdivision 2; 
          136D.82, subdivision 3; 245A.03, subdivision 2; 
          275.065, subdivisions 1 and 6; 275.125, subdivisions 
          6j and 11g; 298.28, subdivision 4; 364.09; and 373.42, 
          subdivision 2; Laws 1990, chapter 366, section 1, 
          subdivision 2; Laws 1991, chapter 265, articles 3, 
          section 39, subdivision 16; 4, section 30, subdivision 
          11; 5, sections 18, 23, and 24, subdivision 4; 6, 
          section 67, subdivision 3; 7, sections 37, subdivision 
          6, and 41, subdivision 4; 8, sections 14 and 19, 
          subdivision 6; 9, sections 75 and 76; and 11, section 
          23, subdivision 1; proposing coding for new law in 
          Minnesota Statutes, chapters 124; 124A; 126; and 135A; 
          repealing Minnesota Statutes 1990, sections 121.25; 
          121.26; 121.27; 121.28; 124.274; 124A.02, subdivision 
          24; 124A.23, subdivisions 2, 2a, and 3; 124A.26, 
          subdivisions 2 and 3; 124A.27; 124A.28; 124A.29, 
          subdivision 2; 125.03, subdivision 5; 126.071, 
          subdivisions 2, 3, and 4; 128A.022, subdivisions 5 and 
          7; 128A.024, subdivision 1; 134.34, subdivision 2; 
          136D.74, subdivision 3; and 136D.76, subdivision 3; 
          Minnesota Statutes 1991 Supplement, sections 123.35, 
          subdivision 19; 124.2727, subdivisions 1, 2, 3, 4, and 
          5; 124.646, subdivision 2; 124A.02, subdivisions 16 
          and 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 
          1h, and 1i; 124A.04; 124A.22, subdivisions 2, 3, 4, 
          4a, 4b, 8, and 9; 124A.23, subdivisions 1, 4, and 5; 
          124A.24; 124A.26, subdivision 1; 124A.29, subdivision 
          1; 126.071, subdivision 1; and 136D.90, subdivision 2; 
          Laws 1990, chapters 562, article 12; and 604, article 
          8, section 12; Laws 1991, chapter 265, articles 2, 
          section 18; 3, section 36; 5, section 17; 6, sections 
          4, 20, 22 to 26, 28, 30 to 33, 41 to 45, 60, and 64; 
          7, section 35.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                            GENERAL EDUCATION
    Section 1.  Minnesota Statutes 1991 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 sections 124.2721, subdivision 3; 
124.575, subdivision 3; and 275.125, subdivision 9a; and Laws 
1976, chapter 20, section 4.  
    (b) In June of each year, the school district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the May, June, and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, which are for the fiscal year 
payable in that fiscal year plus 37.0 an amount equal to the 
levy recognized as revenue in June of the prior year plus 50.0 
percent of the amount of the levy certified in the prior 
calendar year according to section 124A.03, subdivision 2, plus 
or minus auditor's adjustments, not including levy portions that 
are assumed by the state; or 
    (3) 37.0 50.0 percent of the amount of the levy certified 
in the prior calendar year, plus or minus auditor's adjustments, 
not including levy portions that are assumed by the state, which 
remains after subtracting, by fund, the amounts levied for the 
following purposes:  
       (i) reducing or eliminating projected deficits in the 
reserved fund balance accounts for unemployment insurance and 
bus purchases; 
      (ii) statutory operating debt pursuant to section 275.125, 
subdivision 9a, and Laws 1976, chapter 20, section 4; and 
      (iii) retirement and severance pay pursuant to sections 
124.2725, subdivision 15, 124.4945, and 275.125, subdivisions 4 
and 6a, and Laws 1975, chapter 261, section 4, article 6, 
section 13; and 
      (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, amounts 
levied for down payments under section 124.82, subdivision 3, 
and amounts levied pursuant to section 275.125, subdivision 14a. 
      (c) In July of each year, the school district shall 
recognize as revenue that portion of the school district tax 
settlement revenue received in that calendar year and not 
recognized as revenue for the previous fiscal year pursuant to 
clause (b).  
      (d) All other school district tax settlement revenue shall 
be recognized as revenue in the fiscal year of the settlement. 
Portions of the school district levy assumed by the state, 
including prior year adjustments and the amount to fund the 
school portion of the reimbursement made pursuant to section 
273.425, shall be recognized as revenue in the fiscal year 
beginning in the calendar year for which the levy is payable. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
121.904, subdivision 4e, is amended to read: 
    Subd. 4e.  [COOPERATION LEVY RECOGNITION.] (a) A 
cooperative district is a district or cooperative that receives 
revenue according to section 124.2721 or 124.575.  
    (b) In June of each year, the cooperative district shall 
recognize as revenue, in the fund for which the levy was made, 
the lesser of:  
    (1) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, that are for the fiscal year 
payable in that fiscal year plus an amount equal to the levy 
recognized as revenue in June of the prior year; or 
    (2) 37.0 50.0 percent of the difference between 
    (i) the sum of the amount of levies certified in the prior 
year according to sections 124.2721, subdivision 3, and 124.575, 
subdivision 3; and 
    (ii) the amount of transition homestead and agricultural 
credit aid paid to the cooperative unit according to section 
273.1392 for the fiscal year to which the levy is attributable. 
     Sec. 3.  Minnesota Statutes 1990, section 122.531, 
subdivision 2, is amended to read: 
    Subd. 2.  [VOLUNTARY DISSOLUTION:  REFERENDUM LEVIES 
REVENUE.] As of the effective date of the voluntary dissolution 
of a district and its attachment to one or more existing 
districts pursuant to section 122.22, the authorization for all 
referendum levies revenues previously approved by the voters of 
all affected districts for those districts pursuant to section 
124A.03, subdivision 2, or its predecessor provision, is 
canceled.  However, if all of the territory of any independent 
district is included in the enlarged district, and if the 
adjusted net tax capacity of taxable property in that territory 
comprises 90 percent or more of the adjusted net tax capacity of 
all taxable property in an enlarged district, the board of the 
enlarged district may levy the increased amount previously 
approved by a referendum in the preexisting independent district 
upon all taxable property in the enlarged district district's 
referendum revenue shall be determined as follows: 
    If the referendum revenue previously approved in the 
preexisting district is authorized as a tax rate, the referendum 
revenue in the enlarged district is the tax rate times the net 
tax capacity of the enlarged district.  If referendum revenue 
previously approved in the preexisting district is authorized as 
revenue per actual pupil unit, the referendum revenue shall be 
the revenue per actual pupil unit times the number of actual 
pupil units in the enlarged district. If referendum revenue in 
the preexisting district is authorized both as a tax rate and as 
revenue per actual pupil unit, the referendum revenue in the 
enlarged district shall be the sum of both plus any referendum 
revenue in the preexisting district authorized as a dollar 
amount.  Any new referendum levy revenue shall be certified 
authorized only after approval is granted by the voters of the 
entire enlarged district in an election pursuant to section 
124A.03, subdivision 2. 
    Sec. 4.  Minnesota Statutes 1990, section 122.531, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [CONSOLIDATION; MAXIMUM AUTHORIZED REFERENDUM 
LEVIES REVENUES.] As of the effective date of a consolidation 
pursuant to section 122.23, if the plan for consolidation so 
provides, or if the plan for consolidation makes no provision 
concerning referendum levies revenues, the authorization for all 
referendum levies revenues previously approved by the voters of 
all affected districts for those districts pursuant to section 
124A.03, subdivision 2, or its predecessor provision shall be 
recalculated as provided in this subdivision.  The 
referendum levy revenue authorization for the newly created 
district shall be the local net tax capacity rate that would 
raise an amount equal to the combined dollar amount of the 
referendum levies revenues authorized by each of the component 
districts for the year preceding the consolidation, unless the 
referendum levy revenue authorization of the newly created 
district is subsequently modified pursuant to section 124A.03, 
subdivision 2.  If the referendum levy revenue authorizations 
for each of the component districts were limited to a specified 
number of years, the referendum levy revenue authorization for 
the newly created district shall continue for a period of time 
equal to the longest period authorized for any component 
district.  If the referendum levy revenue authorization of any 
component district is not limited to a specified number of 
years, the referendum levy revenue authorization for the newly 
created district shall not be limited to a specified number of 
years.  
    Sec. 5.  Minnesota Statutes 1990, section 122.531, 
subdivision 2b, is amended to read: 
    Subd. 2b.  [ALTERNATIVE METHOD.] As of the effective date 
of a consolidation pursuant to section 122.23, if the plan for 
consolidation so provides, the authorization for all 
referendum levies revenues previously approved by the voters of 
all affected districts for those districts pursuant to section 
124A.03, subdivision 2, or its predecessor provision shall be 
combined as provided in this subdivision.  The referendum levy 
revenue authorization for the newly created district may be 
any local tax rate allowance per actual pupil unit provided in 
the plan for consolidation, but may not exceed the local tax 
rate allowance per actual pupil unit that would raise an amount 
equal to the combined dollar amount of the referendum levies 
revenues authorized by each of the component districts for the 
year preceding the consolidation.  If the referendum levy 
revenue authorizations for each of the component districts were 
limited to a specified number of years, the referendum levy 
revenue authorization for the newly created district shall 
continue for a period of time equal to the longest period 
authorized for any component district.  If the referendum levy 
revenue authorization of any component district is not limited 
to a specified number of years, the referendum levy revenue 
authorization for the newly created district shall not be 
limited to a specified number of years.  The referendum levy 
revenue authorization for the newly created district may be 
modified pursuant to section 124A.03, subdivision 2. 
    Sec. 6.  Minnesota Statutes 1990, section 124.155, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
aids and credits enumerated in subdivision 2 payable to any 
school district, education district, or secondary vocational 
cooperative for that fiscal year shall be adjusted, in the order 
listed, by an amount equal to (1) the amount the district, 
education district, or secondary vocational cooperative 
recognized as revenue for the prior fiscal year pursuant to 
section 121.904, subdivision 4a, clause (b), plus revenue 
recognized according to section 121.904, subdivision 4e, minus 
(2) the amount the district recognizes as revenue for the 
current fiscal year pursuant to section 121.904, subdivision 4a, 
clause (b), plus revenue recognized according to section 
121.904, subdivision 4e.  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), plus revenue recognized according to section 
121.904, subdivision 4e, shall not include any amount levied 
pursuant to section sections 124A.03, subdivision 2, and 
275.125, subdivisions 5, 6e, 6i, 6k, and 24; article 6, sections 
29 and 36; article 12, section 25; and section 20 of this 
article.  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. 7.  Minnesota Statutes 1991 Supplement, section 
124.195, subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] (a) The term "other district 
receipts" means payments by county treasurers pursuant to 
section 276.10, apportionments from the school endowment fund 
pursuant to section 124.09, apportionments by the county auditor 
pursuant to section 124.10, subdivision 2, and payments to 
school districts by the commissioner of revenue pursuant to 
chapter 298.  
    (b) The term "cumulative amount guaranteed" means the sum 
of the following: 
    (1) one-third of the final adjustment payment according to 
subdivision 6; plus 
    (2) the product of 
    (i) the cumulative disbursement percentage shown in 
subdivision 3; times 
    (ii) the sum of 
    85 percent of the estimated aid and credit entitlements 
paid according to subdivision 10; plus 
    100 percent of the entitlements paid according to 
subdivisions 8 and 9; plus 
    the other district receipts; plus 
    the final adjustment payment according to subdivision 6.  
    (c) The term "payment date" means the date on which state 
payments to school districts are made by the electronic funds 
transfer method.  If a payment date falls on a Saturday, the 
payment shall be made on the immediately preceding business 
day.  If a payment date falls on a Sunday, the payment shall be 
made on the immediately following business day.  If a payment 
date falls on or a weekday which is a legal holiday, the payment 
shall be made on the immediately preceding following business 
day.  The commissioner of education may make payments on dates 
other than those listed in subdivision 3, but only for portions 
of payments from any preceding payment dates which could not be 
processed by the electronic funds transfer method due to 
documented extenuating circumstances. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
124.195, subdivision 3a, is amended to read: 
    Subd. 3a.  [APPEAL.] The commissioner in consultation with 
the commissioner of finance may revise the payment dates and 
percentages in subdivision 3 for a district if it is determined 
that there is an emergency or there are serious cash flow 
problems in the district that cannot be resolved by issuing 
warrants or other forms of indebtedness or if the commissioner 
determines that excessive short-term borrowing costs will be 
incurred by a district, because of the increase in the levy 
recognition percentage from 37 percent to 50 percent according 
to sections 1 and 2, and the district can document substantial 
harm to instructional programs due to these costs.  The 
commissioner shall establish a process and criteria for school 
districts to appeal the payment dates and percentages 
established in subdivision 3. 
    Sec. 9.  [124.197] [SHORT-TERM BORROWING COST REIMBURSEMENT 
AID.] 
    Subdivision 1.  [FROM 1993 AND THEREAFTER.] Beginning in 
fiscal year 1993, the commissioner of education shall pay aid to 
eligible school districts to reimburse them for costs of 
short-term borrowing. 
    Subd. 2.  [DOCUMENTATION.] Short-term borrowing cost 
reimbursement aid shall only be paid to a school district 
providing documentation to the commissioner of education 
demonstrating that it engaged in short-term borrowing during the 
fiscal year for which it is requesting reimbursement.  The 
commissioner shall determine and define specific data that 
districts must provide and establish the due date for 
submission.  Any district not submitting required data by the 
due date will be excluded from the aid calculations for that 
year. 
    Subd. 3.  [DEFINITION.] For purposes of this section, "cash 
need" equals the difference between estimated cumulative 
expenditures and estimated cumulative receipts calculated in a 
manner consistent with sections 124.155 and 124.195, less the 
amount of cash balance determined according to section 124.196. 
    Subd. 4.  [COMPUTATION.] The maximum short-term borrowing 
cost reimbursement aid for a fiscal year shall be the smaller of:
    (1) documented short-term borrowing costs; or 
    (2) the sum of the products of: 
    (i) a semimonthly short-term borrowing interest rate 
estimated by the commissioner of finance, times 
    (ii) the positive semimonthly differences between: 
    (a) the cash need estimated in a manner consistent with 
sections 124.155 and 124.195, assuming the revenue recognition 
percent specified in section 121.904, subdivisions 4a and 4e, is 
50 percent; and the schedules and criteria for aid and credit 
payments in section 124.195; and 
    (b) the cash need estimated in a manner consistent with 
sections 124.155 and 124.195, assuming the revenue recognition 
percent specified in section 121.904, subdivision 4a, is 37 
percent; the schedules and criteria for aid and credit payments 
in section 124.195.  The cash need calculations required for 
determining the short-term borrowing cost reimbursement aid are 
to be based on the data used in accordance with the state aid 
payment calculations required by section 124.195 for the May 30 
payment period.  The commissioner of education may adjust the 
May 30 data for updated information as is appropriate. 
    Subd. 5.  [PAYMENT.] The short-term borrowing cost 
reimbursement aid shall be paid in full to eligible districts on 
or before June 30 of each fiscal year.  
    Subd. 6.  [APPROPRIATION.] There is annually appropriated 
to the commissioner of education the amount needed to pay 
short-term borrowing cost reimbursement aid as established in 
this section. 
    Sec. 10.  [124A.029] [REFERENDUM AND DESEGREGATION REVENUE 
CONVERSION.] 
    Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
under subdivision 4, the referendum authority under section 
124A.03 and the levy authority under section 275.125, 
subdivisions 6e and 6i, of a school district must be converted 
by the department according to this section. 
    Subd. 2.  [ADJUSTMENT RATIO.] For assessment years 1991, 
1992, and 1993, the commissioner of revenue must determine for 
each school district a ratio equal to: 
    (1) the net tax capacity for taxable property in the 
district determined by applying the property tax class rates for 
assessment year 1990 to the market values of taxable property 
for each assessment year, divided by 
    (2) the net tax capacity of the district for the assessment 
year. 
    Subd. 3.  [RATE ADJUSTMENT.] The department shall adjust a 
school district's referendum authority for a referendum approved 
before July 1, 1991, excluding authority based on a dollar 
amount, and the levy authority under section 275.125, 
subdivisions 6e and 6i, by multiplying the sum of the rates 
authorized by a district under section 124A.03 and the rates in 
section 275.125, subdivisions 6e and 6i, by the ratio determined 
under subdivision 2 for the assessment year for which the 
revenue is attributable.  The adjusted rates for assessment year 
1993 shall apply to later years for which the revenue is 
authorized. 
    Subd. 4.  [PER PUPIL REVENUE OPTION.] A district may, by 
school board resolution, request that the department convert the 
levy authority under section 275.125, subdivisions 6e and 6i, or 
its current referendum revenue, excluding authority based on a 
dollar amount, authorized before July 1, 1991, to an allowance 
per pupil.  The district must adopt a resolution and submit a 
copy of the resolution to the department by July 1, 1992.  The 
department shall convert a district's revenue for fiscal year 
1994 and later years as follows:  the revenue allowance equals 
the amount determined by dividing the district's maximum revenue 
under section 124A.03 or 275.125, subdivisions 6e and 6i, for 
fiscal year 1993 by the district's 1992-1993 actual pupil 
units.  A district's maximum revenue for all later years for 
which the revenue is authorized equals the revenue allowance 
times the district's actual pupil units for that year.  If a 
district has referendum authority under section 124A.03 and levy 
authority under section 275.125, subdivisions 6e and 6i, and the 
district requests that each be converted, the department shall 
convert separate revenue allowances for each. However, if a 
district's referendum revenue is limited to a dollar amount, the 
maximum revenue under section 124A.03 must not exceed that 
dollar amount.  If the referendum authority of a district is 
converted according to this subdivision, the authority expires 
July 1, 1997, unless it is scheduled to expire sooner. 
    Sec. 11.  Minnesota Statutes 1991 Supplement, section 
124A.03, subdivision 1c, is amended to read: 
    Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
subdivision 1b, a district's referendum allowance must not 
exceed the greater of:  
    (1) the district's referendum allowance for fiscal year 
1992; or 
    (2) the district's referendum allowance for fiscal year 
1993; 
    (3) 35 30 percent of the formula allowance for that the 
fiscal year for which it is attributable; or 
    (4) for a district that held a successful referendum levy 
election in calendar year 1991, 35 percent of the formula 
allowance for the fiscal year to which it is attributable. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
124A.03, subdivision 2, is amended to read: 
    Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
by section 124A.22, subdivision 1, may be increased in the 
amount approved by the voters of the district at a referendum 
called for the purpose.  The referendum may be called by the 
school board or shall be called by the school board upon written 
petition of qualified voters of the district.  The referendum 
shall be conducted during the calendar year before the increased 
levy authority, if approved, first becomes payable.  Only one 
election to approve an increase may be held in a calendar year.  
Unless the referendum is conducted by mail under paragraph (g), 
the referendum must be held on the first Tuesday after the first 
Monday in November.  The ballot shall state the maximum amount 
of the increased revenue per actual pupil unit, the estimated 
net tax capacity referendum tax rate as a percentage of market 
value in the first year it is to be levied, and that the revenue 
shall be used to finance school operations.  The ballot may 
state that existing referendum levy authority is expiring.  In 
this case, the ballot may also compare the proposed levy 
authority to the existing expiring levy authority, and express 
the proposed increase as the amount, if any, over the 
expiring referendum levy authority.  The ballot shall designate 
the specific number of years, not to exceed five, for which the 
referendum authorization shall apply.  The ballot may contain a 
textual portion with the information required in this 
subdivision and a question stating substantially the following:  
     "Shall the increase in the revenue proposed by (petition 
to) the board of ........., School District No. .., be approved?"
     If approved, an amount equal to the approved revenue per 
actual pupil unit times the actual pupil units for the school 
year beginning in the year after the levy is certified shall be 
authorized for certification for the number of years approved, 
if applicable, or until revoked or reduced by the voters of the 
district at a subsequent referendum. 
     (b) The school board shall prepare and deliver by first 
class mail at least 15 days but no more than 30 days prior to 
the day of the referendum to each taxpayer at the address listed 
on the school district's current year's assessment roll, a 
notice of the referendum and the proposed revenue increase.  For 
the purpose of giving mailed notice under this subdivision, 
owners shall be those shown to be owners on the records of the 
county auditor or, in any county where tax statements are mailed 
by the county treasurer, on the records of the county 
treasurer.  Every property owner whose name does not appear on 
the records of the county auditor or the county treasurer shall 
be deemed to have waived this mailed notice unless the owner has 
requested in writing that the county auditor or county 
treasurer, as the case may be, include the name on the records 
for this purpose.  The notice must project the anticipated 
amount of tax increase in annual dollars and annual percentage 
for typical residential homesteads, agricultural homesteads, 
apartments, and commercial-industrial property within the school 
district. 
      The notice for a referendum may state that an existing 
referendum levy is expiring and project the anticipated amount 
of increase over the existing referendum levy, if any, in annual 
dollars and annual percentage for typical residential 
homesteads, agricultural homesteads, apartments, and 
commercial-industrial property within the school district. 
     The notice must include the following statement:  "Passage 
of this referendum will result in an increase in your property 
taxes." 
     (c) A referendum on the question of revoking or reducing 
the increased revenue amount authorized pursuant to paragraph 
(a) may be called by the school board and shall be called by the 
school board upon the written petition of qualified voters of 
the district.  A referendum to revoke or reduce the levy amount 
must be based upon the dollar amount, local tax rate, or amount 
per actual pupil unit, that was stated to be the basis for the 
initial authorization.  Revenue approved by the voters of the 
district pursuant to paragraph (a) must be received at least 
once before it is subject to a referendum on its revocation or 
reduction for subsequent years.  Only one revocation or 
reduction referendum may be held to revoke or reduce referendum 
revenue for any specific year and for years thereafter. 
     (d) A petition authorized by paragraph (a) or (c) shall be 
effective if signed by a number of qualified voters in excess of 
15 percent of the registered voters of the school district on 
the day the petition is filed with the school board.  A 
referendum invoked by petition shall be held on the date 
specified in paragraph (a). 
     (e) The approval of 50 percent plus one of those voting on 
the question is required to pass a referendum authorized by this 
subdivision. 
     (f) At least 15 days prior to the day of the referendum, 
the district shall submit a copy of the notice required under 
paragraph (b) to the commissioner of education.  Within 15 days 
after the results of the referendum have been certified by the 
school board, or in the case of a recount, the certification of 
the results of the recount by the canvassing board, the district 
shall notify the commissioner of education of the results of the 
referendum. 
     (g) Any referendum under this section held on a day other 
than the first Tuesday after the first Monday in November must 
be conducted by mail in accordance with section 204B.46.  
Notwithstanding paragraph (b) to the contrary, in the case of a 
referendum conducted by mail under this paragraph, the notice 
required by paragraph (b) shall be prepared and delivered by 
first class mail at least 20 days before the referendum. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
124A.03, subdivision 2a, is amended to read: 
    Subd. 2a.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
Notwithstanding the provisions of subdivision 2, a school 
referendum levy approved after November 1, 1992, for taxes 
payable in 1993 and thereafter, shall be levied against the 
market value of all taxable property.  Any referendum levy 
amount subject to the requirements of this subdivision shall be 
certified separately to the county auditor under section 275.07. 
    The ballot shall state the maximum amount of the increased 
levy as a percentage of market value, the amount that will be 
raised by that new school referendum tax rate in the first year 
it is to be levied, and that the new school referendum tax rate 
shall be used to finance school operations. 
    If approved, the amount provided by the new school 
referendum tax rate applied to the market value for the year 
preceding the year the levy is certified, shall be authorized 
for certification for the number of years approved, if 
applicable, or until revoked or reduced by the voters of the 
district at a subsequent referendum. 
    All other provisions of subdivision 2 that do not conflict 
with this subdivision shall apply to referendum levies under 
this subdivision.  
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
124A.03, is amended by adding a subdivision to read: 
    Subd. 2b.  [REFERENDUM DATE.] In addition to the referenda 
allowed in subdivision 2, clause (g), the commissioner may 
authorize a referendum for a different day.  
    (a) The commissioner may grant authority to a district to 
hold a referendum on a different day if the district is in 
statutory operating debt and has an approved plan or has 
received an extension from the department to file a plan to 
eliminate the statutory operating debt.  
    (b) The commissioner must approve, deny, or modify each 
district's request for a referendum levy on a different day 
within 60 days of receiving the request from a district. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
124A.23, subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
commissioner of revenue shall establish the general education 
tax rate and certify it to the commissioner of education by July 
1 of each year for levies payable in the following year.  The 
general education tax capacity rate shall be a rate, rounded up 
to the nearest tenth of a percent, that, when applied to the 
adjusted net tax capacity for all districts, raises the amount 
specified in this subdivision.  The general education tax rate 
shall be the rate that raises $916,000,000 for fiscal year 1993 
and $961,800,000 $969,800,000 for fiscal year 1994 and later 
fiscal years.  The general education tax rate certified by the 
commissioner of revenue may not be changed due to changes or 
corrections made to a district's adjusted net tax capacity after 
the tax rate has been certified.  
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
124A.26, subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE REDUCTION.] A district's general 
education revenue for a school year shall be reduced if the 
estimated net unappropriated operating fund balance as of June 
30 in the prior school year exceeds $600 times the fund balance 
pupil units in the prior year.  For purposes of this subdivision 
only and section 124.243, subdivision 2, fund balance pupil 
units means the number of resident pupil units in average daily 
membership, including shared time pupils, according to section 
124A.02, subdivision 20, plus 
    (1) pupils attending the district for which general 
education aid adjustments are made according to section 
124A.036, subdivision 5; minus 
    (2) the sum of the resident pupils attending other 
districts for which general education aid adjustments are made 
according to section 124A.036, subdivision 5, plus pupils for 
whom payment is made according to section 126.22, subdivision 8, 
or 126.23.  The amount of the reduction shall equal the lesser 
of: 
    (1) the amount of the excess, or 
    (2) $150 times the actual pupil units for the school year. 
    The final adjustment payments made under section 124.195, 
subdivision 6, must be adjusted to reflect actual net operating 
fund balances as of June 30 of the prior school year. 
     Sec. 17.  Minnesota Statutes 1990, section 124A.26, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ALTERNATIVE REDUCTION CALCULATION.] For any 
district where the ratio of (1) the number of nonpublic students 
ages 5 to 18, according to the report required under section 
120.102, to (2) the total number of residents in the district 
ages 5 to 18 as counted according to the annual fall school 
census is greater than 40 percent, the district's net 
unappropriated operating fund balance for that year for the 
purpose of calculating the fund balance reduction under this 
section is equal to the sum of the district's net unappropriated 
fund balance in the general, transportation, and food service 
funds. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
124A.29, subdivision 1, is amended to read: 
    Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
PROGRAMS.] (a) Of a district's basic revenue under section 
124A.22, subdivision 2, an amount equal to $15 times the number 
of actual pupil units shall be reserved and may be used only to 
provide staff time for peer review under section 125.12 or 
125.17 or staff development programs for, including 
outcome-based education, according to under section 126.70, 
subdivisions 1 and 2a.  Staff development revenue may be used 
only for staff time for peer review or outcome-based education 
activities.  The school board shall determine the staff 
development activities to provide, the manner in which they will 
be provided, and the extent to which other local funds may be 
used to supplement staff development activities that implement 
outcome-based education. 
    (b) Of a district's basic revenue under section 124A.22, 
subdivision 2, an amount equal to $5 times the number of actual 
pupil units must be reserved and may be used only to provide 
parental involvement programs that implement section 124C.61.  A 
district may use up to $1 of the $5 times the number of actual 
pupil units for promoting parental involvement in the PER 
process. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
126.70, is amended to read: 
    126.70 [STAFF DEVELOPMENT PLAN.] 
    Subdivision 1.  [ELIGIBILITY FOR REVENUE.] A school board 
may use the revenue authorized in section 124A.29 for staff time 
for peer review under section 125.12 or 125.17, or if it 
establishes an outcome-based a staff development advisory 
committee and adopts a staff development plan on outcome-based 
education according to under this subdivision.  A majority of 
the advisory committee must be teachers representing various 
grade levels and subject areas.  The advisory committee must 
also include parents and administrators.  The advisory committee 
shall develop a staff development plan containing proposed 
outcome-based education activities and that includes related 
expenditures and shall submit the plan to the school board.  If 
the school board approves the plan, the district may use the 
staff development revenue authorized in section 124A.29.  Copies 
of approved plans must be submitted to the 
commissioner.  Districts must submit approved plans to the 
commissioner. 
    Subd. 2.  [CONTENTS OF THE PLAN.] The plan may include: 
    (1) procedures the district will use to analyze 
outcome-based education needs; 
    (2) integration methods for integrating education needs 
with in-service and curricular efforts already in progress; 
    (3) education goals to be achieved and the means to be used 
achieve the goals; and 
    (4) procedures for evaluating progress toward meeting 
education needs and goals.  
    Subd. 2a.  [PERMITTED USES.] A school board may approve a 
plan to accomplish any of the following purposes: 
    (1) foster readiness for outcome-based education by 
increasing knowledge and understanding of and commitment to 
outcome-based education learning; 
    (2) facilitate organizational changes by enabling a 
site-based team composed of pupils, parents, school personnel, 
and community members to address pupils' needs through 
outcome-based education; 
    (3) develop programs to increase pupils' educational 
progress by developing appropriate outcomes and personal 
learning plans goals and by encouraging pupils and their parents 
to assume responsibility for their education; 
    (4) design and develop outcome-based education programs 
containing various instructional opportunities that recognize 
pupils' individual needs and utilize family and community 
resources; 
    (5) evaluate the effectiveness of outcome-based education 
policies, processes, and products through appropriate evaluation 
procedures that include multiple criteria and indicators; and 
    (6) provide staff time for peer review of probationary, 
continuing contract, and nonprobationary teachers. 
    Sec. 20.  [LOW FUND BALANCE LEVY.] 
    (a) For 1992 taxes payable in 1993, a district meeting the 
qualifications in paragraph (b) may levy an amount not to exceed 
$40 times the number of actual pupil units in the district in 
fiscal year 1993. 
    (b) a district qualifies for a levy under this section if:  
    (1) its net unappropriated operating fund balance on June 
30, 1991, divided by its actual pupil units for fiscal year 1993 
is less than $85; 
    (2) its adjusted net tax capacity used to compute fiscal 
year 1993 general education revenue divided by its fiscal year 
1993 actual pupil units is less than $2,100; and 
    (3) it does not have referendum levy authority under 
Minnesota Statutes, section 124A.03. 
    Sec. 21.  [APPROPRIATION REDUCTIONS.] 
    For fiscal year 1993, appropriations to the department of 
education in Laws 1991, chapter 265, and appropriations for any 
property tax aid or credit paid to school districts from the 
state's general fund pursuant to Minnesota Statutes, chapter 
273, shall be reduced by a combined total of $182,700,000 in a 
manner consistent with Minnesota Statutes, section 124.155, 
subdivision 2. 
    Sec. 22.  [LEVY RECOGNITION DIFFERENCES.] 
    For each school district that levies under Minnesota 
Statutes, section 124A.03, the commissioner of education shall 
calculate the difference between: 
    (1) the amount of the levy, under Minnesota Statutes, 
section 124A.03, that is recognized as revenue for fiscal year 
1993 according to section 1; and 
    (2) the amount of the levy, under Minnesota Statutes, 
section 124A.03, that would have been recognized as revenue for 
fiscal year 1993 had the percentage according to section 1 not 
been increased. 
    The commissioner shall reduce other aids due the district 
by the amount of the difference. 
    Sec. 23.  [BORROWING AGAINST LEVIES.] 
    The limit for borrowing money upon negotiable tax 
anticipation certificates of indebtedness, according to 
Minnesota Statutes, section 124.73, subdivision 1, is increased 
from 50 to 75 percent for certificates or warrants issued before 
July 1, 1993. 
    Sec. 24.  [EFFECTIVE DATES.] 
    Section 12 is effective retroactively to February 1, 1992, 
applies to any referenda conducted in 1992 and thereafter, and 
supersedes any enactment affecting school district referendum 
levies during the 1992 legislative session to the extent any 
enactment is to the contrary. 
    Sections 13 and 14 are effective the day following final 
enactment.  
     Section 16 is effective the day following final enactment 
and applies to 1991-1992 and later school years. 
    Section 17 is effective retroactively to July 1, 1990, and 
applies to 1990-1991 and later school years. 

                               ARTICLE 2 

                             TRANSPORTATION 
    Section 1.  Minnesota Statutes 1990, section 123.39, 
subdivision 8d, is amended to read: 
    Subd. 8d.  School districts may provide bus transportation 
along regular school bus routes when space is available for 
participants in early childhood family education programs and 
learning readiness program if these services do not result in an 
increase in the district's expenditures for transportation.  The 
costs allocated to these services, as determined by generally 
accepted accounting principles, shall be considered part of the 
authorized cost for regular transportation for the purposes of 
section 124.225. 
    Sec. 2.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 5i.  [TRANSPORTATION LEVY FOR LATE ACTIVITY BUS.] (a) 
A school district may levy an amount equal to the lesser of: 
    (1) the actual cost of late transportation home from 
school, between schools within a district, or between schools in 
one or more districts that have an agreement under sections 
122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
involved in after school activities for the school year 
beginning in the year the levy is certified; or 
    (2) two percent of the district's regular transportation 
revenue for that school year according to section 124.225, 
subdivision 7d, paragraph (a). 
    (b) A district that levies under this section must provide 
late transportation home from school for students participating 
in any academic-related activities provided by the district if 
transportation is provided for students participating in 
athletic activities. 
    (c) A district may levy under this subdivision only if the 
district provided late transportation home from school during 
fiscal year 1991. 

                                ARTICLE 3

                            SPECIAL PROGRAMS
    Section 1.  Minnesota Statutes 1990, section 120.17, 
subdivision 2, is amended to read: 
    Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) Special 
instruction and services for handicapped children must be based 
on the assessment and individual education plan.  The 
instruction and services may be provided by one or more of the 
following methods: 
    (a) (1) connection with attending regular elementary and 
secondary school classes; 
    (b) (2) establishment of special classes; 
    (c) (3) at the home or bedside of the child; 
    (d) (4) in other districts; 
    (e) (5) instruction and services by special education 
cooperative centers established under this section, or in 
another member district of the cooperative center to which the 
resident district of the handicapped child belongs; 
    (f) (6) in a state residential school or a school 
department of a state institution approved by the commissioner; 
    (g) (7) in other states; 
    (h) (8) by contracting with public, private or voluntary 
agencies; 
    (i) (9) for children under age five and their families, 
programs and services established through collaborative efforts 
with other agencies; 
    (j) (10) for children under age five and their families, 
programs in which handicapped children are served with 
nonhandicapped children; and 
    (k) (11) any other method approved by the commissioner. 
    (b) Preference shall be given to providing special 
instruction and services to children under age three and their 
families in the residence of the child with the parent or 
primary caregiver, or both, present. 
    (c) The primary responsibility for the education of a 
handicapped child shall remain with the district of the child's 
residence regardless of which method of providing special 
instruction and services is used.  The district of residence 
must inform the parents of the child about the methods of 
instruction that are available. 
    (d) Paragraphs (e) to (i) may be cited as the "blind 
persons' literacy rights and education act." 
    (e) The following definitions apply to paragraphs (f) to 
(i). 
    "Blind student" means an individual who is eligible for 
special educational services and who: 
    (1) has a visual acuity of 20/200 or less in the better eye 
with correcting lenses or has a limited field of vision such 
that the widest diameter subtends an angular distance of no 
greater than 20 degrees; or 
    (2) has a medically indicated expectation of visual 
deterioration. 
    "Braille" means the system of reading and writing through 
touch commonly known as standard English Braille.  
    "Individualized education plan" means a written statement 
developed for a student eligible for special education and 
services pursuant to this section and section 602(a)(20) of part 
A of the Individuals with Disabilities Education Act, 20 United 
States Code, section 1401(a). 
    (f) In developing an individualized education plan for each 
blind student the presumption must be that proficiency in 
Braille reading and writing is essential for the student to 
achieve satisfactory educational progress.  The assessment 
required for each student must include a Braille skills 
inventory, including a statement of strengths and deficits.  
Braille instruction and use are not required by this paragraph 
if, in the course of developing the student's individualized 
education program, team members concur that the student's visual 
impairment does not affect reading and writing performance 
commensurate with ability.  This paragraph does not require the 
exclusive use of Braille if other special education services are 
appropriate to the student's educational needs.  The provision 
of other appropriate services does not preclude Braille use or 
instruction.  Instruction in Braille reading and writing shall 
be available for each blind student for whom the 
multidisciplinary team has determined that reading and writing 
is appropriate. 
    (g) Instruction in Braille reading and writing must be 
sufficient to enable each blind student to communicate 
effectively and efficiently with the same level of proficiency 
expected of the student's peers of comparable ability and grade 
level.  
    (h) The student's individualized education plan must 
specify: 
    (1) the results obtained from the assessment required under 
paragraph (f); 
    (2) how Braille will be implemented through integration 
with other classroom activities; 
    (3) the date on which Braille instruction will begin; 
    (4) the length of the period of instruction and the 
frequency and duration of each instructional session; 
    (5) the level of competency in Braille reading and writing 
to be achieved by the end of the period and the objective 
assessment measures to be used; and 
    (6) if a decision has been made under paragraph (f) that 
Braille instruction or use is not required for the student:  
    (i) a statement that the decision was reached after a 
review of pertinent literature describing the educational 
benefits of Braille instruction and use; and 
    (ii) a specification of the evidence used to determine that 
the student's ability to read and write effectively without 
Braille is not impaired. 
    (i) Instruction in Braille reading and writing is a service 
for the purpose of special education and services under section 
120.17. 
    (j) Paragraphs (e) to (i) shall not be construed to 
supersede any rights of a parent or guardian of a child with a 
disability under federal or state law. 
    Sec. 2.  Minnesota Statutes 1990, section 120.17, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
shall ensure that: 
    (1) all handicapped children students with disabilities are 
provided the special instruction and services which are 
appropriate to their needs.  The student's needs and the special 
education instruction and services to be provided shall be 
agreed upon through the development of an individual education 
plan.  The plan shall address the student's need to develop 
skills to live and work as independently as possible within the 
community.  By grade 9 or age 14, the plan shall address the 
student's needs for transition from secondary services to 
post-secondary education and training, employment, and community 
participation, recreation, and leisure and home living.  The 
plan must include a statement of the needed transition services, 
including a statement of the interagency responsibilities or 
linkages or both before secondary services are concluded; 
    (2) handicapped children under age five and their families 
are provided special instruction and services appropriate to the 
child's level of functioning and needs; 
    (3) handicapped children and their parents or guardians are 
guaranteed procedural safeguards and the right to participate in 
decisions involving identification, assessment and educational 
placement of handicapped children; 
    (4) to the maximum extent appropriate, handicapped 
children, including those in public or private institutions or 
other care facilities, are educated with children who are not 
handicapped, and that special classes, separate schooling, or 
other removal of handicapped children from the regular 
educational environment occurs only when and to the extent that 
the nature or severity of the handicap is such that education in 
regular classes with the use of supplementary services cannot be 
achieved satisfactorily; 
     (5) in accordance with recognized professional standards, 
testing and evaluation materials, and procedures utilized for 
the purposes of classification and placement of handicapped 
children are selected and administered so as not to be racially 
or culturally discriminatory; and 
     (6) the rights of the child are protected when the parents 
or guardians are not known or not available, or the child is a 
ward of the state. 
    Sec. 3.  Minnesota Statutes 1991 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 (e) at the district's 
initiative; 
     (c) Parents and guardians shall have an opportunity to meet 
with appropriate district staff in at least one conciliation 
conference if they object to any proposal of which they are 
notified pursuant to clause (a).  The conciliation process shall 
not be used to deny or delay a parent or guardian's right to a 
due process hearing.  If the parent or guardian refuses efforts 
by the district to conciliate the dispute with the school 
district, the requirement of an opportunity for conciliation 
shall be deemed to be satisfied; 
     (d) The commissioner shall establish a mediation process to 
assist parents, school districts, or other parties to resolve 
disputes arising out of the identification, assessment, or 
educational placement of handicapped children.  The mediation 
process must be offered as an informal alternative to the due 
process hearing provided under clause (e), but must not be used 
to deny or postpone the opportunity of a parent or guardian to 
obtain a due process hearing. 
     (e) Parents, guardians, and the district shall have an 
opportunity to obtain an impartial due process hearing initiated 
and conducted by and in the school district responsible for 
assuring that an appropriate program is provided in accordance 
with state board rules, if the parent or guardian continues to 
object to:  
     (1) a proposed formal educational assessment or proposed 
denial of a formal educational assessment of their child; 
     (2) the proposed placement of their child in, or transfer 
of their child to a special education program; 
     (3) the proposed denial of placement of their child in a 
special education program or the transfer of their child from a 
special education program; 
     (4) the proposed provision or addition of special education 
services for their child; or 
     (5) the proposed denial or removal of special education 
services for their child. 
     At least five calendar days before the hearing, the 
objecting party shall provide the other party with a brief 
written statement of the objection and the reasons for the 
objection.  
     The hearing shall take place before an impartial hearing 
officer mutually agreed to by the school board and the parent or 
guardian.  If the school board and the parent or guardian are 
unable to agree on a hearing officer, the school board shall 
request the commissioner to appoint a hearing officer.  The 
hearing officer shall not be a school board member or employee 
of the school district where the child resides or of the child's 
school district of residence, an employee of any other public 
agency involved in the education or care of the child, or any 
person with a personal or professional interest which would 
conflict with the person's objectivity at the hearing.  A person 
who otherwise qualifies as a hearing officer is not an employee 
of the district solely because the person is paid by the 
district to serve as a hearing officer.  If the hearing officer 
requests an independent educational assessment of a child, the 
cost of the assessment shall be at district expense.  The 
proceedings shall be recorded and preserved, at the expense of 
the school district, pending ultimate disposition of the action. 
     (f) The decision of the hearing officer pursuant to clause 
(e) shall be rendered not more than 45 calendar days from the 
date of the receipt of the request for the hearing.  A hearing 
officer may grant specific extensions of time beyond the 45-day 
period at the request of either party.  The decision of the 
hearing officer shall be binding on all parties unless appealed 
to the hearing review officer by the parent, guardian, or the 
school board of the district where the child resides pursuant to 
clause (g). 
     The local decision shall: 
     (1) be in writing; 
     (2) state the controlling facts upon which the decision is 
made in sufficient detail to apprise the parties and the hearing 
review officer of the basis and reason for the decision; 
     (3) state whether the special education program or special 
education services appropriate to the child's needs can be 
reasonably provided within the resources available to the 
responsible district or districts; 
     (4) state the amount and source of any additional district 
expenditure necessary to implement the decision; and 
     (5) be based on the standards set forth in subdivision 3a 
and the rules of the state board. 
     (g) Any local decision issued pursuant to clauses (e) and 
(f) may be appealed to the hearing review officer within 30 
calendar days of receipt of that written decision, by the 
parent, guardian, or the school board of the district 
responsible for assuring that an appropriate program is provided 
in accordance with state board rules. 
     If the decision is appealed, a written transcript of the 
hearing shall be made by the school district and shall be 
accessible to the parties involved within five calendar days of 
the filing of the appeal.  The hearing review officer shall 
issue a final independent decision based on an impartial review 
of the local decision and the entire record within 60 30 
calendar days after the filing of the appeal.  The hearing 
review officer shall seek additional evidence if necessary and 
may afford the parties an opportunity for written or oral 
argument; provided any hearing held to seek additional evidence 
shall be an impartial due process hearing but shall be deemed 
not to be a contested case hearing for purposes of chapter 14.  
The hearing review officer may grant specific extensions of time 
beyond the 30-day period at the request of any party. 
     The final decision shall: 
     (1) be in writing; 
     (2) include findings and conclusions; and 
     (3) be based upon the standards set forth in subdivision 3a 
and in the rules of the state board. 
     (h) The decision of the hearing review officer shall be 
final unless appealed by the parent or guardian or school board 
to the court of appeals.  The judicial review shall be in 
accordance with chapter 14.  
     (i) The commissioner of education shall select an 
individual who has the qualifications enumerated in this 
paragraph to serve as the hearing review officer: 
     (1) the individual must be knowledgeable and impartial; 
     (2) the individual must not have a personal interest in or 
specific involvement with the student who is a party to the 
hearing; 
     (3) the individual must not have been employed as an 
administrator by the district that is a party to the hearing; 
     (4) the individual must not have been involved in the 
selection of the administrators of the district that is a party 
to the hearing; 
     (5) the individual must not have a personal, economic, or 
professional interest in the outcome of the hearing other than 
the proper administration of the federal and state laws, rules, 
and policies; 
     (6) the individual must not have substantial involvement in 
the development of a state or local policy or procedures that 
are challenged in the appeal; and 
     (7) the individual is not a current employee or board 
member of a Minnesota public school district, education 
district, intermediate unit or regional education agency, the 
state department of education, the state board of education, or 
a parent advocacy organization or group.  
     (j) In all appeals, the parent or guardian of the 
handicapped student or the district that is a party to the 
hearing may challenge the impartiality or competence of the 
proposed hearing review officer by applying to the state board 
of education.  
    (k) Pending the completion of proceedings pursuant to this 
subdivision, unless the district and the parent or guardian of 
the child agree otherwise, the child shall remain in the child's 
current educational placement and shall not be denied initial 
admission to school. 
    (l) The child's school district of residence, a resident 
district, and providing district shall receive notice of and may 
be a party to any hearings or appeals under this subdivision. 
    Sec. 4.  Minnesota Statutes 1990, section 120.17, 
subdivision 8a, is amended to read: 
    Subd. 8a.  [RESIDENCE OF CHILD UNDER SPECIAL CONDITIONS.] 
The legal residence of a handicapped child placed in a foster 
facility for care and treatment when: (1) parental rights have 
been terminated by court order; (2) parent or guardian is not 
living within the state; or (3) no other school district 
residence can be established, or (4) parent or guardian having 
legal custody of the child is an inmate of a Minnesota 
correctional facility or is a resident of a halfway house under 
the supervision of the commissioner of corrections; shall be the 
school district in which the child resides.  The school board of 
the district of residence shall provide the same educational 
program for such child as it provides for all resident 
handicapped children in the district. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
120.17, subdivision 11a, is amended to read: 
    Subd. 11a.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
interagency coordinating council of at least 15 members but not 
more than 25 is established, in compliance with Public Law 
Number 102-119, section 682.  The members and the chair shall be 
appointed by the governor.  Council members shall elect the 
council chairperson.  The representative of the commissioner of 
education may not serve as the chairperson.  The council shall 
be composed of at least three five parents, including persons of 
color, of children with disabilities under age seven with 
handicaps 12, including at least three parents of a child with a 
disability under age seven, three representatives of public or 
private providers of services for children with disabilities 
under age five with handicaps, including a special education 
director, county social service director, and a community health 
services or public health nursing administrator, one member of 
the senate, one member of the house of representatives, one 
representative of teacher preparation programs in early 
childhood-special education or other preparation programs in 
early childhood intervention, at least one representative of 
advocacy organizations for children with handicaps, at least one 
representative of a school district or a school district 
cooperative, and other members knowledgeable about 
children disabilities under age five with handicaps, one 
physician who cares for young children with special health care 
needs, one representative each from the commissioners of 
commerce, education, health, human services, and jobs and 
training, and a representative from Indian health services or a 
tribal council.  Section 15.059, subdivisions 2 to 5, apply to 
the council.  The council shall meet at least quarterly.  A 
representative of each of the commissioners of education, 
health, and human services shall attend council meetings as a 
nonvoting member of the council. 
    The council shall address methods of implementing the state 
policy of developing and implementing comprehensive, 
coordinated, multidisciplinary interagency programs of early 
intervention services for children with handicaps disabilities 
and their families. 
    The duties of the council include recommending policies to 
ensure a comprehensive and coordinated system of all state and 
local agency services for children under age five with handicaps 
disabilities and their families.  The policies must address how 
to incorporate each agency's services into a unified state and 
local system of multidisciplinary assessment practices, 
individual intervention plans, comprehensive systems to find 
children in need of services, methods to improve public 
awareness, and assistance in determining the role of interagency 
early intervention committees.  
    It is the joint responsibility of county boards and school 
districts to coordinate, provide, and pay for appropriate 
services, and to facilitate payment for services from public and 
private sources.  Appropriate services must be determined in 
consultation with parents, physicians, and other educational, 
medical, health, and human services providers.  Appropriate 
services include family education and counseling, home visits, 
occupational and physical therapy, speech pathology, audiology, 
psychological services, case management, medical services for 
diagnostic and evaluation purposes, early identification, and 
screening, assessment, and health services necessary to enable 
children with handicaps to benefit from early intervention 
services.  School districts must be the primary agency in this 
cooperative effort.  
    Each year by January 15 June 1, the council shall submit 
its recommendations recommend to the governor and the 
commissioners of education, health, and human services, 
commerce, and jobs and training policies for a comprehensive and 
coordinated system. 
    Sec. 6.  Minnesota Statutes 1990, section 120.17, is 
amended by adding a subdivision to read: 
    Subd. 11b.  [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
DISTRICTS.] 
    It is the joint responsibility of county boards and school 
districts to coordinate, provide, and pay for appropriate 
services, and to facilitate payment for services from public and 
private sources.  Appropriate services must be determined in 
consultation with parents, physicians, and other educational, 
medical, health, and human services providers.  Appropriate 
services include family education and counseling, home visits, 
occupational and physical therapy, speech pathology, audiology, 
psychological services, case management, medical services for 
diagnostic and evaluation purposes, early identification, and 
screening, assessment, and health services necessary to enable 
children with handicaps to benefit from early intervention 
services.  School districts must be the primary agency in this 
cooperative effort.  
    Sec. 7.  Minnesota Statutes 1990, section 120.17, 
subdivision 16, is amended to read: 
    Subd. 16.  [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 
district, group of districts, or special education cooperative, 
in cooperation with the county or counties in which the district 
or cooperative is located, shall establish a community 
transition interagency committee for handicapped youth with 
disabilities, beginning at grade 9 or age equivalent, and their 
families.  Members of the committee shall consist of 
representatives from special education; vocational and regular 
education; community education; post-secondary education and 
training institutions; adults with disabilities who have 
received transition services if such persons are available; 
parents of handicapped youth with disabilities; local business 
or industry; rehabilitation services; county social services; 
health agencies; and additional public or private adult service 
providers as appropriate.  The committee shall elect a chair and 
shall meet regularly.  The committee shall: 
    (1) identify current services, programs, and funding 
sources provided within the community for secondary and 
post-secondary aged handicapped youth with disabilities and 
their families; 
    (2) facilitate the development of multiagency teams to 
address present and future transition needs of individual 
students on their individual education plans; 
    (3) develop a community plan to include mission, goals, and 
objectives, and an implementation plan to assure that transition 
needs of handicapped individuals with disabilities are met; 
    (4) recommend changes or improvements in the community 
system of transition services; 
    (5) exchange agency information such as appropriate data, 
effectiveness studies, special projects, exemplary programs, and 
creative funding of programs; and 
    (6) following procedures determined by the commissioner, 
prepare a yearly summary assessing the progress of transition 
services in the community and disseminate it including follow-up 
of individuals with disabilities who were provided transition 
services to determine post-school outcomes.  The summary must be 
disseminated to all adult services agencies involved in the 
planning and to the commissioner of education by September 
October 1 of each year. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
120.181, is amended to read: 
    120.181 [TEMPORARY PLACEMENTS FOR CARE AND TREATMENT 
PLACEMENT OF NONHANDICAPPED PUPILS; EDUCATION AND 
TRANSPORTATION.] 
    The responsibility for providing instruction and 
transportation for a nonhandicapped pupil who has a short-term 
or temporary physical or emotional illness or disability, as 
determined by the standards of the state board, and who is 
temporarily placed for care and treatment for that illness or 
disability, shall be determined in the following manner: as 
provided in this section.  
    (a) The school district of residence of the pupil shall be 
the district in which the pupil's parent or guardian resides or 
the district designated by the commissioner of education if 
neither parent nor guardian is living within the state.  
    (b) Prior to the placement of a pupil for care and 
treatment, the district of residence shall be notified and 
provided an opportunity to participate in the placement 
decision.  When an immediate emergency placement is necessary 
and time does not permit resident district participation in the 
placement decision, the district in which the pupil is 
temporarily placed, if different from the district of residence, 
shall notify the district of residence of the emergency 
placement within 15 days of the placement.  
    (c) When a nonhandicapped pupil is temporarily placed for 
care and treatment in a day program and the pupil continues to 
live within the district of residence during the care and 
treatment, the district of residence shall provide instruction 
and necessary transportation for the pupil.  The district may 
provide the instruction at a school within the district of 
residence, at the pupil's residence, or in the case of a 
placement outside of the resident district, in the district in 
which the day treatment program is located by paying tuition to 
that district.  The district of placement may contract with a 
facility to provide instruction by teachers licensed by the 
state board of teaching.  
    (d) When a nonhandicapped pupil is temporarily placed in a 
residential program for care and treatment, the district in 
which the pupil is placed shall provide instruction for the 
pupil and necessary transportation within that district while 
the pupil is receiving instruction, and in the case of a 
placement outside of the district of residence, the nonresident 
district shall bill the district of residence for the actual 
cost of providing the instruction for the regular school year 
and for summer school, excluding transportation costs.  When a 
nonhandicapped pupil is temporarily placed in a residential 
program outside the district of residence, the administrator of 
the court placing the pupil shall send timely written notice of 
the placement to the district of residence.  The district of 
placement may contract with a residential facility to provide 
instruction by teachers licensed by the state board of teaching. 
    (e) The district of residence shall receive general 
education aid for include the pupil in its residence count of 
pupil units and pay tuition and other instructional costs, 
excluding transportation costs, as provided in section 124.18 to 
the district providing the instruction.  Transportation costs 
shall be paid by the district providing the transportation and 
the state shall pay transportation aid to that district.  For 
purposes of computing state transportation aid, pupils governed 
by this subdivision shall be included in the handicapped 
transportation category.  
    Sec. 9.  Minnesota Statutes 1990, section 124.331, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE.] The purpose of sections 124.331 
to 124.333 is to improve the education of public school pupils 
by: 
    (1) working toward reducing instructor-learner ratios and 
increasing the amount of individual attention given each learner 
in kindergarten and through grade 1 3 to help each learner 
develop socially and emotionally and in knowledge, skills, and 
attitudes; and 
    (2) improving program offerings. 
    Sec. 10.  Minnesota Statutes 1990, section 124.331, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATE REVENUE CRITERIA.] Revenue available under 
section 124.332 is to enable a district to work to achieve the 
district's instructor-learner ratios in kindergarten and through 
grade 1 3 established by the curriculum advisory committee in 
each district, and to prepare and use an individualized learning 
plan for each learner in kindergarten and through grade 1 3.  A 
district must not increase the districtwide instructor-learner 
ratios in grades 2 4 through 8 as a result of reducing 
instructor-learner ratios in kindergarten and through grade 1 3. 
    A district's curriculum advisory committee, as part of the 
policy under section 126.666, must develop a districtwide plan 
to work to achieve the instructor-learner ratios in kindergarten 
and through grade 1 3 adopted by the school board of the 
district, and to prepare and use an individualized learning plan 
for each learner in kindergarten and through grade 1 3.  If the 
school board of a school district determines that the district 
has achieved and is maintaining the instructor-learner ratios 
specified by the district's curriculum advisory committee, and 
has prepared and is using individualized learning plans, the 
school board must direct the school district to use the aid it 
receives under section 124.332 to work to improve program 
offerings throughout the district, or the education district of 
which the district is a member, based upon a plan developed by 
the district's curriculum advisory committee. 
    Sec. 11.  Minnesota Statutes 1991 Supplement, section 
125.62, subdivision 6, is amended to read: 
    Subd. 6.  [ELIGIBILITY FOR SCHOLARSHIPS AND LOANS.] The 
following Indian people are eligible for scholarships: 
    (1) a student, including a teacher aide employed by a 
district receiving a joint grant, who intends to become a 
teacher and who is enrolled in a post-secondary institution 
receiving a joint grant; 
    (2) a licensed employee of a district receiving a joint 
grant, who is enrolled in a master of education program; and 
    (3) a student who, after applying for federal and state 
financial aid and an Indian scholarship according to section 
124.48, has financial needs that remain unmet.  Financial need 
shall be determined according to the uniform congressional 
methodology for needs determination or as otherwise set in 
federal law. 
    A person who has actual living expenses in addition to 
those addressed by the uniform congressional methodology for 
needs determination, or as otherwise set in federal law, may 
receive a loan according to criteria established by the state 
board.  A contract shall be executed between the state and the 
student for the amount and terms of the loan. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
245A.03, subdivision 2, is amended to read: 
    Subd. 2.  [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 
245A.16 do not apply to: 
    (1) residential or nonresidential programs that are 
provided to a person by an individual who is related; 
    (2) nonresidential programs that are provided by an 
unrelated individual to persons from a single related family; 
    (3) residential or nonresidential programs that are 
provided to adults who do not abuse chemicals or who do not have 
a chemical dependency, a mental illness, mental retardation or a 
related condition, a functional impairment, or a physical 
handicap; 
    (4) sheltered workshops or work activity programs that are 
certified by the commissioner of jobs and training; 
    (5) programs for children enrolled in kindergarten to the 
12th grade and prekindergarten regular and special education in 
a school as defined in section 120.101, subdivision 4, and 
programs serving children in combined special education and 
regular prekindergarten programs that are operated or assisted 
by the commissioner of education or a school as defined in 
section 120.101, subdivision 4; 
    (6) nonresidential programs for children that provide care 
or supervision for periods of less than three hours a day while 
the child's parent or legal guardian is in the same building or 
present on property that is contiguous with the physical 
facility where the nonresidential program is provided; 
    (7) nursing homes or hospitals licensed by the commissioner 
of health except as specified under section 245A.02; 
    (8) board and lodge facilities licensed by the commissioner 
of health that provide services for five or more persons whose 
primary diagnosis is mental illness who have refused an 
appropriate residential program offered by a county agency.  
This exclusion expires on July 1, 1990; 
    (9) homes providing programs for persons placed there by a 
licensed agency for legal adoption, unless the adoption is not 
completed within two years; 
    (10) programs licensed by the commissioner of corrections; 
    (11) recreation programs for children or adults that 
operate for fewer than 40 calendar days in a calendar year; 
    (12) programs whose primary purpose is to provide, for 
adults or school-age children, including children who will be 
eligible to enter kindergarten within not more than four months, 
social and recreational activities, such as scouting, boys 
clubs, girls clubs, sports, or the arts; except that a program 
operating in a school building is not excluded unless it is 
approved by the district's school board; 
       (13) head start nonresidential programs which operate for 
less than 31 days in each calendar year; 
       (14) noncertified boarding care homes unless they provide 
services for five or more persons whose primary diagnosis is 
mental illness or mental retardation; 
       (15) nonresidential programs for nonhandicapped children 
provided for a cumulative total of less than 30 days in any 
12-month period; 
    (16) residential programs for persons with mental illness, 
that are located in hospitals, until the commissioner adopts 
appropriate rules; 
    (17) the religious instruction of school-age children; 
Sabbath or Sunday schools; or the congregate care of children by 
a church, congregation, or religious society during the period 
used by the church, congregation, or religious society for its 
regular worship; 
    (18) camps licensed by the commissioner of health under 
Minnesota Rules, chapter 4630; 
    (19) mental health outpatient services for adults with 
mental illness or children with emotional disturbance; or 
    (20) residential programs serving school-age children whose 
sole purpose is cultural or educational exchange, until the 
commissioner adopts appropriate rules. 
    For purposes of clause (5), the department of education, 
after consulting with the department of human services, shall 
adopt standards applicable to preschool programs administered by 
public schools that are similar to Minnesota Rules, parts 
9503.005 to 9503.0175.  These standards are exempt from 
rulemaking under chapter 14. 
     Sec. 13.  Laws 1991, chapter 265, article 3, section 39, 
subdivision 16, is amended to read: 
    Subd. 16.  [INDIAN TEACHER PREPARATION GRANTS.] For joint 
grants to assist Indian people to become teachers: 
     $190,000     .....     1992 
     $190,000     .....     1993 
    Up to Initially $70,000 each year is for a joint grant to 
the University of Minnesota at Duluth and the Duluth school 
district. 
    Up to Initially $40,000 each year is for a joint grant to 
each of the following: 
    (1) Bemidji state university and the Red Lake school 
district; 
    (2) Moorhead state university and a school district located 
within the White Earth reservation; and 
    (3) Augsburg college and the Minneapolis school district. 
    Money not used for students at one location may be 
transferred for use at another location. 
    Any unexpended balance remaining the first year does not 
cancel but is available in the second year. 
    Sec. 14.  [BASE ADJUSTMENT.] 
    Upon request of a school district that is eligible for and 
receives alternative delivery revenue under Minnesota Statutes, 
section 124.322, the commissioner of education shall adjust the 
district's revenue base and revenue for fiscal years 1992 and 
1993 to reflect any new service requirements imposed upon the 
district.  The adjustments shall be made to the district's aid 
and levy.  However the adjustment must not result in a reduction 
in state aid to any other district. 
    Sec. 15.  [ALLOCATION OF FUNDS.] 
    In the Northwest ECSU region, the commissioner of education 
shall allocate federal funds for the regional special education 
low incidence plans in a manner consistent with the 
recommendation of a majority of the school boards in the 
region.  The allocation method must provide access for all 
districts in the region to the services supported by the funds. 
    Sec. 16.  [STATE INTERAGENCY COORDINATING COUNCIL REPORT.] 
    The state interagency coordinating council shall appoint a 
task force composed of council members and representatives of 
all affected state and local agencies, including county boards 
and school districts, to study and report to the education 
committees of the legislature by February 15, 1993, the short- 
and long-term fiscal impact to the state of providing a 
comprehensive and coordinated system of services to infants and 
toddlers with disabilities from birth through age two and their 
families. 
    Sec. 17.  [COUNCIL TO REVIEW DEPARTMENT OF HUMAN SERVICES 
RULE.] 
    The early childhood care and education council shall 
appoint a task force composed of council members and affected 
early childhood service providers to study and recommend to the 
human services and education committees of the legislature by 
February 15, 1993, education program standards and licensure 
procedures for programs subject to licensure under Minnesota 
Rules, parts 9503.0005 to 9503.0175.  
    Sec. 18.  [REPEALER.] 
    Minnesota Statutes 1990, sections 126.071, subdivisions 2, 
3, and 4; 128A.022, subdivisions 5 and 7; and 128A.024, 
subdivision 1; and Minnesota Statutes 1991 Supplement, section 
126.071, subdivision 1, are repealed. 
    Sec. 19.  [APPROPRIATION.] 
    There is appropriated from the general fund to the 
department of education $25,000 for fiscal year 1993 for a grant 
to independent school district No. 518, Worthington, for 
planning the construction of new residential facilities for the 
Lakeview program for students with disabilities.  The grant must 
be matched with money from nonstate sources. 
    Sec. 20.  [EFFECTIVE DATE.] 
    Sections 5, 6, and 14 are effective the day following final 
enactment. 

                                ARTICLE 4

             EARLY CHILDHOOD, COMMUNITY, AND ADULT EDUCATION
    Section 1.  Minnesota Statutes 1991 Supplement, section 
123.702, subdivision 1, is amended to read: 
    Subdivision 1.  Every school board shall provide for a 
mandatory program of early childhood developmental screening for 
children who are four years old and older but who have not 
entered kindergarten or first grade in a public school.  This 
screening program shall be established either by one board, by 
two or more boards acting in cooperation, by educational 
cooperative service units, by early childhood family education 
programs, or by other existing programs.  This screening 
examination is a mandatory prerequisite to enrolling requirement 
for a student to in continue attending kindergarten or first 
grade in a public school.  A child need not submit to 
developmental screening provided by a school board if the 
child's health records indicate to the school board that the 
child has received comparable developmental screening from a 
public or private health care organization or individual health 
care provider.  The school districts are encouraged to reduce 
the costs of preschool developmental screening programs by 
utilizing volunteers in implementing the program.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
123.702, subdivision 1a, is amended to read: 
    Subd. 1a.  A child must not be enrolled in this state in 
kindergarten or first grade in a public school until unless the 
parent or guardian of the child submits to the school principal 
or other person having general control and supervision of the 
school a record indicating the months and year the child 
received developmental screening and the results of the 
screening not later than 30 days after the first day of 
attendance.  If a child is transferred from one kindergarten to 
another or from one first grade to another, the parent or 
guardian of the child must be allowed 30 days to submit the 
child's record, during which time the child may attend school. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
123.702, subdivision 1b, is amended to read: 
    Subd. 1b.  (a) A screening program shall include at least 
the following components:  developmental assessments, hearing 
and vision screening or referral, immunization review and 
referral, the child's height and weight, review of any special 
family circumstances that might affect development, 
identification of additional risk factors that may influence 
learning, an interview with the parent about the child, and 
referral for assessment, diagnosis, and treatment when potential 
needs are identified.  The school district and the person 
performing or supervising the screening shall provide a parent 
or guardian with clear written notice that the parent or 
guardian may decline to answer questions or provide information 
about family circumstances that might affect development and 
identification of risk factors that may influence learning.  The 
notice shall clearly state that declining to answer questions or 
provide information does not prevent the child from being 
enrolled in kindergarten or first grade if all other screening 
components are met.  If a parent or guardian is not able to read 
and comprehend the written notice, the school district and the 
person performing or supervising the screening must convey the 
information in another manner.  The notice shall also inform the 
parent or guardian that a child need not submit to the school 
district screening program if the child's health records 
indicate to the school that the child has received comparable 
developmental screening performed within the preceding 365 days 
by a public or private health care organization or individual 
health care provider.  The notice shall be given to a parent or 
guardian at the time the district initially provides information 
to the parent or guardian about screening and shall be given 
again at the screening location.  
    (b) All screening components shall be consistent with the 
standards of the state commissioner of health for early 
developmental screening programs.  No developmental screening 
program shall provide laboratory tests, a health history or a 
physical examination to any child.  The school district shall 
request from the public or private health care organization or 
the individual health care provider the results of any 
laboratory test, health history or physical examination within 
the 12 months preceding a child's scheduled screening.  
    (c) If a child is without health coverage, the school 
district shall refer the child to an appropriate health care 
provider.  
     (d) A school board may offer additional components such as 
nutritional, physical and dental assessments, blood pressure, 
and laboratory tests, and health history.  State aid shall not 
be paid for additional components. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
123.702, subdivision 3, is amended to read: 
    Subd. 3.  The school board shall inform each resident 
family with a child eligible to participate in the developmental 
screening program about the availability of the program and the 
state's requirement that a child receive developmental screening 
before enrolling in not later than 30 days after the first day 
of attending kindergarten or first grade in a public school. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
124.19, subdivision 7, is amended to read: 
    Subd. 7.  [ALTERNATIVE PROGRAMS.] (a) This subdivision 
applies to an alternative program that has been approved by the 
state board of education pursuant to Minnesota Rules, part 
3500.3500, as exempt from Minnesota Rules, part 3500.1500, 
requiring a school day to be at least six hours in duration.  
    (b) To receive general education revenue for a pupil in an 
alternative program, a school district must meet the 
requirements in this paragraph.  The program must be approved by 
the commissioner of education.  In approving a program, the 
commissioner may use the process used for approving state 
designated area learning centers under section 124C.49.  
    (c) In addition to the requirements in paragraph (b), to 
receive general education revenue for a pupil in an alternative 
program that has an independent study component, a school 
district must meet the requirements in this paragraph.  
    The school district must develop with the pupil a continual 
learning plan for the pupil.  A district must allow a minor 
pupil's parent or guardian to participate in developing the 
plan, if the parent or guardian wants to participate.  The plan 
must identify the learning experiences and expected outcomes 
needed for satisfactory credit for the year and for graduation.  
The plan must be updated each year.  
    General education revenue for a pupil in an approved 
alternative program without an independent study component must 
be prorated for a pupil participating for less than a full 
school year, or its equivalent.  
    General education revenue for a pupil in an approved 
alternative program that has an independent study component must 
be paid for each hour of teacher contact time and each hour of 
independent study time completed toward a credit necessary for 
graduation.  Average daily membership for a pupil shall equal 
the number of hours of teacher contact time and independent 
study time divided by the product of the number of instructional 
days required for that year and six, but not more than one, 
except as otherwise provided in section 121.585.  Average daily 
membership for a pupil must not exceed one, unless:  
     (1) a pupil participates in a learning year program under 
section 121.585; 
     (2) a pupil's regular graduating class has already 
graduated; or 
    (3) a pupil needs additional course credits in order to 
graduate on time. 
    For an alternative program having an independent study 
component, the commissioner shall require a description of the 
courses in the program, the kinds of independent study involved, 
the expected learning outcomes of the courses, and the means of 
measuring student performance against the expected outcomes. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
124.2601, subdivision 6, is amended to read: 
    Subd. 6.  [AID GUARANTEE.] Any adult basic education 
program that receives less state aid under subdivision 
subdivisions 3 and 7 than from the aid formula for fiscal year 
1992 shall receive the amount of aid it received in fiscal year 
1992. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
124.2605, is amended to read: 
    124.2605 [GED TEST FEES.] 
    The commissioner of education shall pay 60 percent of the 
costs of a GED test taken by fee that is charged to an eligible 
individual for the full battery of a GED test, but not more than 
$20 for an eligible individual. 
    Sec. 8.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 25.  [LEVY FOR CERTAIN CHILDREN IN EXTENDED DAY 
PROGRAMS.] A school district that offers an extended day program 
according to section 121.88, subdivision 10, may levy for the 
additional costs of providing services to children with 
disabilities who participate in the extended day program. 
    Sec. 9.  Laws 1991, chapter 265, article 4, section 30, 
subdivision 11, is amended to read: 
    Subd. 11.  [GED AND LEARN TO READ ON TV.] For statewide 
purchase of broadcast costs, publicity, and coordination of the 
GED on TV series and the learn to read on TV series: 
     $100,000     .....     1992
     $100,000     .....     1993
    The department may contract for these services. 
    Up to $10,000 of this appropriation for each fiscal year is 
available to contract for these services. 
    Sec. 10.  [EFFECTIVE DATE.] 
    Section 5 is effective July 1, 1992, and applies to 
1992-1993 and later school years.  Section 9 is effective the 
day following final enactment. 

                                ARTICLE 5

                               FACILITIES
    Section 1.  Minnesota Statutes 1990, section 121.148, 
subdivision 3, is amended to read: 
    Subd. 3.  [NEGATIVE REVIEW AND COMMENT.] (a) If the 
commissioner submits a negative review and comment for a 
proposal according to section 121.15, the school board must not 
proceed with construction. the following steps must be taken: 
    (1) the commissioner must notify the school board of the 
proposed negative review and comment and schedule a public 
meeting within 60 days of the notification within that school 
district to discuss the proposed negative review and comment on 
the school facility; and 
    (2) the school board shall appoint an advisory task force 
of up to five members to advise the school board and the 
commissioner on the advantages, disadvantages, and alternatives 
to the proposed facility at the public meeting.  One member of 
the advisory task force must also be a member of the county 
facilities group. 
    (b) After attending the public meeting, the commissioner 
shall reconsider the proposal.  If the commissioner submits a 
negative review and comment, the school board may appeal that 
decision to the state board of education.  The state board of 
education may either uphold the commissioner's negative review 
and comment or instruct the commissioner to submit a positive or 
unfavorable review and comment on the proposed facility. 
    (c) A school board may not proceed with construction if the 
state board of education upholds the commissioner's negative 
review and comment or if the commissioner's negative review and 
comment is not appealed. 
    Sec. 2.  Minnesota Statutes 1990, section 124.243, 
subdivision 2, is amended to read: 
    Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] Capital 
expenditure facilities revenue for a district equals the lesser 
of: 
    (1) $130 $128 times its actual pupil units for the school 
year; or 
    (2) the difference between $400 times the actual pupil 
units for the school year and.  A district's capital expenditure 
facilities revenue for a school year shall be reduced if the 
unreserved balance in the capital expenditure facilities account 
on June 30 of the prior school year.  For the purpose of 
determining revenue for the 1989-1990 and the 1990-1991 school 
years, the unreserved balance in the capital expenditure 
facilities account on June 30 of the prior school year is zero 
exceeds $270 times the fund balance pupil units in the prior 
year as defined in section 124A.26, subdivision 1.  If a 
district's capital expenditure facilities revenue is reduced, 
the reduction equals the lesser of (1) the amount that the 
unreserved balance in the capital expenditure facilities account 
on June 30 of the prior year exceeds $270 times the fund balance 
pupil units in the prior year, or (2) the capital expenditure 
facilities revenue for that year. 
    Sec. 3.  Minnesota Statutes 1990, section 124.243, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [EXCEPTION TO FUND BALANCE REDUCTION.] A 
district may apply to the commissioner for approval for an 
unreserved fund balance in its capital expenditure facilities 
account that exceeds $270 per fund balance pupil unit for a 
period not to exceed three years.  If the commissioner approves 
the district's application, the district's capital expenditure 
facilities revenue shall not be reduced according to subdivision 
2.  The commissioner may approve a district's application for an 
exception only if the use of the district's capital expenditure 
facilities funds are consistent with plans adopted according to 
subdivision 1. 
    Sec. 4.  Minnesota Statutes 1990, section 124.243, 
subdivision 6, is amended to read: 
    Subd. 6.  [USES OF REVENUE.] Capital expenditure facilities 
revenue may be used only for the following purposes: 
    (1) to acquire land for school purposes; 
    (2) to acquire or construct buildings for school purposes, 
if approved by the commissioner of education according to 
applicable statutes and rules; 
    (3) to rent or lease buildings, including the costs of 
building repair or improvement that are part of a lease 
agreement; 
    (4) to equip, reequip, improve, and repair school sites, 
and buildings, and equip or reequip school buildings with 
permanent attached fixtures; 
    (5) for a surplus school building that is used 
substantially for a public nonschool purpose; 
    (6) to eliminate barriers or increase access to school 
buildings by handicapped individuals; 
    (7) to bring school buildings into compliance with the 
uniform fire code adopted according to chapter 299F; 
    (8) to remove asbestos from school buildings, encapsulate 
asbestos, or make asbestos-related repairs; 
    (9) to clean up and dispose of polychlorinated biphenyls 
found in school buildings; 
    (10) to clean up, remove, dispose of, and make repairs 
related to storing heating fuel or transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01; 
    (11) for energy audits for school buildings and to modify 
buildings if the audit indicates the cost of the modification 
can be recovered within ten years; 
    (12) to improve buildings that are leased according to 
section 123.36, subdivision 10; 
    (13) to pay special assessments levied against school 
property but not to pay assessments for service charges; 
    (14) to pay principal and interest on state loans for 
energy conservation according to section 216C.37 or loans made 
under the northeast Minnesota economic protection trust fund act 
according to sections 298.292 to 298.298; and 
    (15) to purchase or lease interactive telecommunications 
equipment. 
    Sec. 5.  Minnesota Statutes 1990, section 124.244, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REVENUE AMOUNT.] The capital expenditure 
equipment revenue for each district equals $65 $63 times its 
actual pupil units counted according to section 124.17, 
subdivision 1, for the school year.  
    Sec. 6.  Minnesota Statutes 1990, section 124.431, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 
1992, a district is not eligible for a capital loan unless the 
district's estimated net debt tax rate after debt service 
equalization aid would be more than 20 percent of adjusted net 
tax capacity. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
124.479, is amended to read: 
    124.479 [BOND ISSUE; MAXIMUM EFFORT SCHOOL LOANS, 1991.] 
    To provide money to be loaned to school districts as 
agencies and political subdivisions of the state to acquire and 
to better public land and buildings and other public 
improvements of a capital nature, in the manner provided by the 
maximum effort school aid law, the commissioner of finance shall 
issue and sell school loan bonds of the state of Minnesota in 
the maximum amount of $45,065,000, in addition to the bonds 
already authorized for this purpose.  The same amount is 
appropriated to the maximum effort school loan fund and must be 
spent under the direction of the commissioner of education to 
make debt service loans and capital loans to school districts as 
provided in sections 124.36 to 124.47.  The bonds must be issued 
and sold and provision for their payment must be made according 
to section 124.46.  Expenses incidental to the sale, printing, 
execution, and delivery of the bonds, including, but without 
limitation, actual and necessary travel and subsistence expenses 
of state officers and employees for those purposes, must be paid 
from the maximum effort school loan fund, and the money 
necessary for the expenses is appropriated from that fund. 
    No bonds may be sold or issued under this section until all 
bonds authorized by Laws 1990, chapter 610, sections 2 to 7, are 
sold and issued and the authorized project contracts have been 
initiated or abandoned.  
    Sec. 8.  Minnesota Statutes 1990, section 124.493, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPROVAL BY COMMISSIONER.] To the extent 
money is available, the commissioner of education may 
approve not more than two pilot projects from applications 
submitted under section 124.494.  The grant money must be used 
only to acquire, construct, remodel or improve the building or 
site of a cooperative secondary facility under contracts to be 
entered into within 15 months after the date on which each grant 
is awarded. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
124.493, subdivision 3, is amended to read: 
    Subd. 3.  [APPLICATIONS COOPERATION AND COMBINATION.] 
Districts that apply for receive a cooperative secondary 
facilities grant after May 1, 1991, shall: 
    (1) submit a plan as set forth in section 122.242 for 
approval by the state board of education; and 
    (2) comply with the provisions of sections 122.243 to 
122.247, applicable to combined districts hold a referendum on 
the question of combination no later than four years after a 
grant is awarded under section 124.493, subdivision 1. 
    The districts are not eligible for cooperation and 
combination revenue under section 124.2725.  Sections 124.494, 
124.4945, and 124.4946 do not apply to districts applying for a 
grant after May 1, 1991, except for provisions in the sections 
relating to acquiring, constructing, remodeling, or improving a 
building or site of a cooperative secondary facility. 
    Sec. 10.  Minnesota Statutes 1990, section 124.494, 
subdivision 2, is amended to read: 
    Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any group of 
districts that submits an application for a grant shall submit a 
proposal to the commissioner for review and comment under 
section 121.15, and the commissioner shall prepare a review and 
comment on the proposed facility, regardless of the amount of 
the capital expenditure required to acquire, construct, remodel 
or improve the secondary facility.  The commissioner must not 
approve an application for an incentive grant for any secondary 
facility unless the facility receives a favorable review and 
comment under section 121.15 and the following criteria are met: 
    (1) a minimum of three or more districts, with kindergarten 
to grade 12 enrollments in each district of no more than 1,200 
pupils, enter into a joint powers agreement; 
    (2) a joint powers board representing all participating 
districts is established under section 471.59 to govern the 
cooperative secondary facility; 
    (3) the planned secondary facility will result in the joint 
powers district meeting the requirements of Minnesota Rules, 
parts 3500.2010 and 3500.2110; 
    (4) at least 240 198 pupils would be served in grades 10 to 
12, 320 264 pupils would be served in grades 9 to 12, or 480 396 
pupils would be served in grades 7 to 12; 
    (5) no more than one superintendent is employed by the 
joint powers board as a result of the cooperative secondary 
facility agreement; 
    (6) a statement of need is submitted, that may include 
reasons why the current secondary facilities are inadequate, 
unsafe or inaccessible to the handicapped; 
    (7) an educational plan is prepared, that includes input 
from both community and professional staff; 
    (8) a combined seniority list for all participating 
districts is developed by the joint powers board; 
    (9) an education program is developed that provides for 
more learning opportunities and course offerings, including the 
offering of advanced placement courses, for students than is 
currently available in any single member district; and 
    (10) a plan is developed for providing instruction of any 
resident students in other districts when distance to the 
secondary education facility makes attendance at the facility 
unreasonably difficult or impractical. 
    (b) To the extent possible, the joint powers board is 
encouraged to provide for severance pay or for early retirement 
incentives under section 125.611, for any teacher or 
administrator, as defined under section 125.12, subdivision 1, 
who is placed on unrequested leave as a result of the 
cooperative secondary facility agreement. 
    (c) For the purpose of paragraph (a), clause (8), each 
school district must be considered to have started school each 
year on the same date. 
    (d) The districts may develop a plan that provides for the 
location of social service, health, and other programs serving 
pupils and community residents within the cooperative secondary 
facility.  The commissioner shall consider this plan when 
preparing a review and comment on the proposed facility. 
    Sec. 11.  Minnesota Statutes 1990, section 124.494, 
subdivision 4, is amended to read: 
    Subd. 4.  [AWARD OF GRANTS.] The commissioner shall examine 
and consider all applications for grants, and if any joint 
powers district is found not qualified, the commissioner shall 
promptly notify that joint powers board.  On July 1 of 1989, the 
commissioner shall make awards to no more than two qualified 
applicants whose applications have been on file with the 
commissioner more than one month.  On July 1, 1992, the 
commissioner shall make awards to no more than two groups of 
districts.  Notwithstanding section 124.494, subdivision 4, the 
first grant shall be made to the group of districts consisting 
of independent school districts No. 240, Blue Earth; No. 225, 
Winnebago; No. 219, Elmore; and No. 218, Delevan, if that group 
has submitted an application and if the application has been 
approved.  The second grant, if money remains, shall be made to 
the group of districts that make up the Grant county project, if 
that group has submitted an application and if that application 
has been approved.  Applications must be filed on or before June 
1, 1992, for the July 1, 1992, grant award consideration.  A 
grant award is subject to verification by the joint powers 
districts as specified in subdivision 6.  A grant award must not 
be made until the site of the secondary facility has been 
determined.  If the total amount of the approved applications 
exceeds the amount that is or can be made available, the 
commissioner shall allot the available amount equally between 
the approved applicant districts.  The commissioner shall 
promptly certify to each qualified joint powers district the 
amount, if any, of the grant awarded to it. 
     Sec. 12.  Minnesota Statutes 1990, section 124.494, 
subdivision 5, is amended to read: 
    Subd. 5.  [REFERENDUM; BOND ISSUE.] Within 90 180 days 
after being awarded a grant under subdivision 4, the joint 
powers board shall submit the question of authorizing the 
borrowing of funds for the secondary facility to the voters of 
the joint powers district at a special election, which may be 
held in conjunction with the annual election of the school board 
members of the member districts.  The question submitted shall 
state the total amount of funding needed from all sources.  A 
majority of those voting in the affirmative on the question is 
sufficient to authorize the joint powers board to accept the 
grant and to issue the bonds on public sale in accordance with 
chapter 475.  The clerk of the joint powers board must certify 
the vote of the bond election to the commissioner of education.  
If the question is approved by the voters, the commissioner 
shall notify the approved applicant districts that the grant 
amount certified under subdivision 4 is available and 
appropriated for payment under this subdivision.  If a majority 
of those voting on the question do not vote in the affirmative, 
the grant must be canceled. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
124.84, subdivision 3, is amended to read: 
    Subd. 3.  [LEVY AUTHORITY.] The district may levy up to 
$150,000 each year for two years $300,000 under this section, as 
approved by the commissioner.  The approved amount may be levied 
over five or fewer years. 
     Sec. 14.  Minnesota Statutes 1991 Supplement, section 
124.95, subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the required debt service levy of a district is defined 
as follows: 
    (1) the amount needed to produce between five and six 
percent in excess of the amount needed to meet when due the 
principal and interest payments on the obligations, excluding 
obligations under section 124.2445, of the district for eligible 
projects according to subdivision 2, including the amounts 
necessary for repayment of energy loans according to section 
216C.37 or sections 298.292 to 298.298, debt service loans and 
capital loans, minus 
    (2) the amount of any surplus remaining in the debt service 
fund when the obligations and interest on them have been 
paid debt service excess for that school year calculated 
according to the procedure established by the commissioner. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
124.95, subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY.] To be eligible for debt service 
equalization revenue, the following conditions must be met The 
following portions of a district's debt service levy qualify for 
debt service equalization: 
    (1) the required debt service levy of a district must 
exceed the amount raised by a level of eight percent times the 
adjusted net tax capacity of the district debt service for 
repayment of principal and interest on bonds issued before July 
2, 1992; 
    (2) debt service for bonds refinanced after July 1, 1992, 
if the bond schedule has been approved by the commissioner and, 
if necessary, adjusted to reflect a 20-year maturity schedule; 
and 
    (3) debt service for bond issues approved bonds issued 
after July 1, 1990 1992, the for construction project must 
projects that have received a positive review and comment 
according to section 121.15;, if (3) the commissioner has 
determined that the district has met the criteria under section 
124.431, subdivision 2, for new projects; and if (4) the bond 
schedule must be has been approved by the commissioner and, if 
necessary, adjusted to reflect a 20-year maturity schedule.  The 
criterion in section 124.431, subdivision 2, paragraph (a), 
clause (2), shall be considered to have been met if the district 
in the fiscal year in which the bonds are authorized at an 
election conducted under chapter 475: 
    (i) serves an average of at least 66 pupils per grade in 
the grades to be served by the facility; or 
    (ii) is eligible for sparsity revenue. 
    Districts identified in Laws 1990, chapter 562, article 11, 
section 8, do not need to meet the criteria of section 124.431, 
subdivision 2, to qualify. 
     Sec. 16.  Minnesota Statutes 1991 Supplement, section 
124.95, is amended by adding a subdivision to read: 
    Subd. 2a.  [NOTIFICATION.] A district eligible for debt 
service equalization revenue under subdivision 2 must notify the 
commissioner of the amount of its intended debt service levy 
calculated under subdivision 1 for all bonds sold prior to the 
notification by July 1 of the calendar year the levy is 
certified. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
124.95, subdivision 3, is amended to read: 
    Subd. 3.  [DEBT SERVICE EQUALIZATION REVENUE.] (a) For 
fiscal years 1995 and later, the debt service equalization 
revenue of a district equals the required debt service levy 
minus the amount raised by a levy of 12 ten percent times the 
adjusted net tax capacity of the district. 
    (b) For fiscal year 1993, debt service equalization revenue 
equals one-third of the amount calculated in paragraph (a). 
    (c) For fiscal year 1994, debt service equalization revenue 
equals two-thirds of the amount calculated in paragraph (a). 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
124.95, subdivision 4, is amended to read: 
    Subd. 4.  [EQUALIZED DEBT SERVICE LEVY.] To obtain debt 
service equalization revenue, a district must levy an amount not 
to exceed the district's debt service equalization revenue times 
the lesser of one or the ratio of: 
    (1) the quotient derived by dividing the adjusted net tax 
capacity of the district for the year before the year the levy 
is certified by the actual pupil units in the district for the 
year to which the levy is attributable prior to the year the 
levy is certified; or to 
    (2) 50 percent of the equalizing factor as defined in 
section 124A.02, subdivision 8, for the year to which the levy 
is attributable. 
     Sec. 19.  Minnesota Statutes 1991 Supplement, section 
124.95, subdivision 5, is amended to read: 
    Subd. 5.  [DEBT SERVICE EQUALIZATION AID.] A district's 
debt service equalization aid is the difference between the debt 
service equalization revenue and the equalized debt service 
levy.  A district's debt service equalization aid must not be 
prorated.  If the amount of debt service equalization aid 
actually appropriated for the fiscal year in which this 
calculation is made is insufficient to fully fund debt service 
equalization aid, the commissioner shall prorate the amount of 
aid across all eligible districts. 
    Sec. 20.  [124.961] [DEBT SERVICE APPROPRIATION.] 
    $6,000,000 is appropriated in fiscal year 1993 from the 
general fund to the commissioner of education for payment of 
debt service equalization aid under section 124.95.  $17,000,000 
in fiscal year 1994 and $21,000,000 in fiscal year 1995 and each 
year thereafter is appropriated from the general fund to the 
commissioner of education for payment of debt service 
equalization aid under section 124.95.  These amounts must be 
reduced by the amount of any money specifically appropriated for 
the same purpose in any year from any state fund. 
    Sec. 21.  [124.962] [1993 and 1994 APPROPRIATIONS.] 
    Notwithstanding section 124.95, subdivision 6, one-half of 
the aid appropriation in section 20 for fiscal year 1993 shall 
be paid to districts on March 15, 1993.  One-half of the 
appropriation for fiscal year 1993 shall cancel to the general 
fund.  Notwithstanding section 124.95, subdivision 6, of the 
appropriation for fiscal year 1994 in section 20, $3,000,000 
shall be paid to districts on September 15, 1993, and the 
remaining appropriation for fiscal year 1994 shall be paid 
according to section 124.95, subdivision 6. 
    Sec. 22.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 11h.  [EXTRA CAPITAL EXPENDITURE LEVY FOR CERTAIN 
LEASE PURCHASES.] (a) Upon application to, and approval by, the 
commissioner in accordance with the procedures and limits in 
subdivision 11d, a district, as defined in this subdivision, may:
    (1) purchase real property under an installment contract or 
may lease real property with an option to purchase under a lease 
purchase agreement, by which installment contract or lease 
purchase agreement title is kept by the seller or vendor or 
assigned to a third party as security for the purchase price, 
including interest, if any; and 
    (2) annually levy the amounts necessary to pay the 
district's obligations under the installment contract or lease 
purchase agreement. 
    (b)(1) The obligation created by the installment contract 
or the lease purchase agreement must not be included in the 
calculation of net debt for purposes of section 475.53, and does 
not constitute debt under other law.  
    (2) An election is not required in connection with the 
execution of the installment contract or the lease purchase 
agreement. 
    (3) The district may terminate the installment contract or 
lease purchase agreement at the end of any fiscal year during 
its term.  
    (c) The proceeds of the levy authorized by this subdivision 
must not be used to acquire a facility to be primarily used for 
athletic or school administration purposes. 
    (d) In this subdivision, "district" means: 
    (1) a school district required to have a comprehensive plan 
for the elimination of segregation whose plan has been 
determined by the commissioner to be in compliance with the 
state board of education rules relating to equality of 
educational opportunity and school desegregation; or 
    (2) a school district that participates in a joint program 
for interdistrict desegregation with a district defined in 
clause (1) if the facility acquired under this subdivision is to 
be primarily used for the joint program. 
    (e) Notwithstanding subdivision 11d, the prohibition 
against a levy by a district to lease or rent a district-owned 
building to itself does not apply to levies otherwise authorized 
by this subdivision. 
    (f) Projects may be approved under this section by the 
commissioner in fiscal years 1993, 1994, and 1995 only. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
373.42, subdivision 2, is amended to read: 
    Subd. 2.  [MEMBERSHIP.] A county facilities group consists 
of at least one representative from the county board, one 
representative from each city located within the county, one 
representative from each school district located within the 
county, up to three representatives of townships selected by the 
county board, and two other members selected by the county board.
Under this section, a school district is located within a county 
if it has an administrative office or a facility or a planned 
facility under section 121.15 in the county. 
    Sec. 24.  Laws 1991, chapter 265, article 5, section 18, is 
amended to read: 
    Sec. 18.  [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
    In addition to other bonding authority, with approval of 
the commissioner, independent school districts No. 393, LeSueur, 
No. 508, St. Peter, and No. 734, Henderson, No. 392, Le Center, 
and No. 2071, Lake Crystal-Wellcome Memorial, may issue general 
obligation bonds for certain capital projects under this 
section.  The bonds must be used only to make capital 
improvements including equipping school buildings, improving 
handicap accessibility to school buildings, and bringing school 
buildings into compliance with fire codes.  
    Before a district issues bonds under this subdivision, it 
must publish notice of the intended projects, related costs, and 
the total amount of district indebtedness.  
    A bond issue tentatively authorized by the board under this 
subdivision becomes finally authorized unless a petition signed 
by more than 15 percent of the registered voters of the school 
district is filed with the school board within 30 days of the 
board's action.  The percentage is to be determined with 
reference to the number of registered voters in the school 
district on the last day before the petition is filed with the 
school board.  The petition must call for a referendum on the 
question of whether to issue the bonds for the projects under 
this section.  The approval of 50 percent plus one of those 
voting on the question is required to pass a referendum 
authorized by this section. 
    The bonds may be issued in a principal amount, that when 
combined with interest thereon, will be paid off with 50 percent 
of current and anticipated revenue for capital facilities under 
this section or a successor section for the current year plus 
projected revenue not greater than the current year for the next 
ten years.  Once finally authorized, the district must set aside 
50 percent of the current year's revenue for capital facilities 
under this section or a successor section each year in a 
separate account until all principal and interest on the bonds 
is paid.  The district must annually transfer this amount from 
its capital fund to the debt redemption fund.  The bonds must be 
paid off within ten years of issuance.  The bonds must be issued 
in compliance with Minnesota Statutes, chapter 475, except as 
otherwise provided in this section. 
    Sec. 25.  Laws 1991, chapter 265, article 5, section 23, is 
amended to read:  
    Sec. 23.  [MAXIMUM EFFORT CAPITAL LOAN DEBT REDEMPTION 
EXCESS.] 
    (a) Notwithstanding Minnesota Statutes, section 124.431, 
subdivision 11, or any other law to the contrary, a school 
district having an outstanding capital loan that has an excess 
amount in the debt redemption fund as calculated according to 
Minnesota Statutes, section 124.431, subdivision 11, may apply 
to the commissioner for an adjustment to the amount of excess 
owed to the state.  The commissioner may shall reduce the excess 
that a district owes the state if a district's capital loan is 
outstanding and if the commissioner determines that any of the 
following conditions apply: 
    (1) a district is likely to incur a substantial property 
tax delinquency that will adversely affect the district's 
ability to make its scheduled bond payments; 
    (2) a district's agreement with its bondholders or its 
taxpayers could be impaired; or 
    (3) the district's tax capacity per pupil is less than 
one-tenth of the equalizing factor as defined in Minnesota 
Statutes, section 124A.02, subdivision 8; or 
    (4) the district would have qualified for a capital loan 
during calendar year 1990 or 1991. 
    (b) The amount of the excess that may be forgiven may not 
exceed $200,000 $260,000 in a single year for any district. 
    (c) Any amount reduced shall be excluded from the 
determination of debt excess under Minnesota Statutes, section 
475.61.  The amount retained by the district may be used for 
cash flow purposes until the last year the district levies for 
debt service for outstanding bonds. 
    Sec. 26.  Laws 1991, chapter 265, article 5, section 24, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEALTH AND SAFETY AID.] For health and safety 
aid according to Minnesota Statutes, section 124.83, subdivision 
5: 
     $11,560,000     .....     1992 
     $11,351,000     .....     1993 
    The 1992 appropriation includes $1,650,000 for 1991 and 
$9,910,000 for 1992.  
    The 1993 appropriation includes $1,748,000 for 1992 and 
$9,603,000 for 1993. 
    For fiscal year 1993, total health and safety revenue may 
not exceed $58,800,000.  The state board of education shall 
establish criteria for prioritizing district health and safety 
project applications not to exceed this amount.  The criteria 
may not discriminate between the number of pupils in and the 
geographic location of school districts.  
    $60,000 of the fiscal year 1993 appropriation shall be used 
to contract with the state fire marshal to provide the services 
required under Minnesota Statutes, section 121.502.  This amount 
is in addition to the amount in Laws 1991, chapter 265, article 
11, section 23, subdivision 3. 
    Sec. 27.  [HEALTH AND SAFETY PLAN; RICHFIELD.] 
    Notwithstanding other law, independent school district No. 
280, Richfield, to pay off its pre-1989 fire safety loan from 
the city of Richfield, may revise the health and safety part of 
the district's capital plan to include the principal and 
interest on the loan payment, now funded by the facilities part, 
with the result that the loan principal and interest will be 
paid off before July 1, 1995. 
     Sec. 28.  [DULUTH BONDING.] 
    Subdivision 1.  [BONDING AUTHORIZATION.] To provide funds 
for the acquisition and betterment, as defined in Minnesota 
Statutes, section 475.51, subdivisions 7 and 8, of existing and 
new facilities, independent school district No. 709 may, by two 
thirds majority plus one vote of all the members of the school 
board, issue general obligation bonds in one or more series in 
calendar years 1992 and 1993 as provided in this section.  The 
aggregate principal amount of any bonds issued under this 
section for calendar years 1992 and 1993 may not exceed 
$9,600,000.  Issuance of the bonds is not subject to Minnesota 
Statutes, section 475.58 or 475.59.  As with other bonds issued 
by independent school district No. 709, Minnesota Statutes, 
section 475.53, subdivision 5, does not apply to issuance of the 
bonds.  If the school board proposes to issue bonds under this 
section, it must publish a resolution describing the proposed 
bond issue once each week for two successive weeks in a legal 
newspaper published in the city of Duluth.  The bonds may be 
issued without the submission of the question of their issue to 
the electors unless, within 30 days after the second publication 
of the resolution, a petition requesting an election signed by a 
number of people residing in the school district equal to five 
percent of the people registered to vote in the last general 
election in the school district is filed with the recording 
officer.  If such a petition is filed, no bonds shall be issued 
under this section unless authorized by a majority of the 
electors voting on the question at the next general or special 
election called to decide the issue.  The bonds must otherwise 
be issued as provided in Minnesota Statutes, chapter 475.  The 
authority to issue bonds under this section is in addition to 
any bonding authority authorized by Minnesota Statutes, chapter 
124, or other law.  The amount of bonding authority authorized 
under this section must be disregarded in calculating the 
bonding limit of chapter 124 or any other law other than 
Minnesota Statutes, section 475.53, subdivision 4, as made 
applicable to independent school district No. 709 by Laws 1973, 
chapter 266. 
    Subd. 2.  [TAX LEVY FOR DEBT SERVICE.] To pay the principal 
of and interest on bonds issued under subdivision 1, independent 
school district No. 709 shall levy a tax in an amount sufficient 
under Minnesota Statutes, section 475.61, subdivisions 1 and 3, 
to pay the principal of and interest on the bonds.  The tax 
authorized under this section is in addition to the taxes 
authorized to be levied under Minnesota Statutes, chapter 124A 
or 275, or other law. 
    Sec. 29.  [LAKE SUPERIOR, VIRGINIA, GRAND RAPIDS SCHOOL 
DISTRICT BONDS.] 
    Subdivision 1.  [AUTHORIZATION.] Independent school 
district No. 381, Lake Superior, may issue bonds in an aggregate 
principal amount not exceeding $779,500, and independent school 
district No. 318, Grand Rapids, may issue, subject to the 
requirement of subdivision 8, bonds in an aggregate principal 
amount not exceeding $5,600,000, and independent school district 
No. 706, Virginia, may issue bonds in an aggregate principal 
amount not exceeding $5,000,000, in addition to any bonds 
already issued or authorized, to provide funds to construct, 
equip, furnish, remodel, rehabilitate, and acquire land for 
school facilities and buildings.  They may spend the proceeds of 
the bond sale for those purposes and any architects', 
engineers', and legal fees incidental to those purposes or the 
sale.  Except as permitted by this section, the bonds shall be 
authorized, issued, sold, executed, and delivered in the manner 
provided by Minnesota Statutes, chapter 475.  A resolution of 
the board levying taxes for the payment of the bonds and 
interest on them as authorized by this section and pledging the 
proceeds of the levies for the payment of the bonds and interest 
on them shall be deemed to be in compliance with the provisions 
of chapter 475 with respect to the levying of taxes for their 
payment. 
    Subd. 2.  [APPROPRIATION.] There is annually appropriated 
from the distribution of taconite production tax revenues to the 
taconite environmental protection fund pursuant to Minnesota 
Statutes, section 298.28, subdivision 11, and to the northeast 
Minnesota economic protection trust pursuant to section 298.28, 
subdivisions 9 and 11, in equal shares, an amount sufficient to 
pay when due 80 percent of the principal and interest on the 
bonds issued pursuant to subdivision 1.  If the annual 
distribution to the northeast Minnesota economic protection 
trust is insufficient to pay its share after fulfilling any 
obligations of the trust under section 298.225 or 298.293, the 
deficiency shall be appropriated from the taconite environmental 
protection fund. 
    Subd. 3.  [DISTRICT OBLIGATIONS.] Bonds issued under 
authority of this section shall be the general obligations of 
the school district, for which its full faith and credit and 
unlimited taxing powers shall be pledged.  If there are any 
deficiencies in the amount received pursuant to subdivision 2, 
they shall be made good by general levies, not subject to limit, 
on all taxable properties in the district in accordance with 
Minnesota Statutes, section 475.64.  If any deficiency levies 
are necessary, the school board may effect a temporary loan or 
loans on certificates of indebtedness issued in anticipation of 
them to meet payments of principal or interest on the bonds due 
or about to become due. 
    Subd. 4.  [DISTRICT LEVY.] The school board shall by 
resolution levy on all property in the school district subject 
to the general ad valorem school tax levies, and not subject to 
taxation under Minnesota Statutes, sections 298.23 to 298.28, a 
direct annual ad valorem tax for each year of the term of the 
bonds in amounts that, if collected in full, will produce the 
amounts needed to meet when due 20 percent of the principal and 
interest payments on the bonds.  A copy of the resolution shall 
be filed, and the necessary taxes shall be extended, assessed, 
collected, and remitted in accordance with Minnesota Statutes, 
section 475.61. 
    Subd. 5.  [LEVY LIMITATIONS.] Taxes levied pursuant to this 
section shall be disregarded in the calculation of any other tax 
levies or limits on tax levies provided by other law. 
    Subd. 6.  [BONDING LIMITATIONS.] Bonds may be issued under 
authority of this section notwithstanding any limitations upon 
the indebtedness of a district, and their amounts shall not be 
included in computing the indebtedness of a district for any 
purpose, including the issuance of subsequent bonds and the 
incurring of subsequent indebtedness. 
    Subd 7.  [TERMINATION OF APPROPRIATION.] The appropriation 
authorized in subdivision 2 shall terminate upon payment or 
maturity of the last of those bonds. 
    Subd. 8.  [GRAND RAPIDS REQUIREMENT FOR ISSUING BONDS.] 
Independent school district No. 318, Grand Rapids, may not issue 
any bonds according to the authority in subdivision 1 unless the 
district expends at least $100,000 of the proceeds of the bonds 
for capital improvements for the industrial technology program 
at Big Fork. 
    Subd. 9.  [LOCAL APPROVAL.] This section is effective for 
independent school district No. 381 the day after its governing 
body complies with Minnesota Statutes, section 645.021, 
subdivision 3, and for independent school district No. 318 the 
day after its governing body complies with Minnesota Statutes, 
section 645.021, subdivision 3, and for independent school 
district No. 706 the day after its governing body complies with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Sec. 30.  [FUND BALANCE LIMIT EXCEPTION.] 
    Notwithstanding Minnesota Statutes, section 124.243, 
subdivision 2, the capital expenditure facilities revenue for 
special school district No. 6, South St. Paul, for fiscal years 
1992, 1993, and 1994 must not be reduced because of the 
district's fund balance.  
    Sec. 31.  [LEVY AND AID ADJUSTMENTS.] 
    The department of education shall adjust the levy limits 
and aid payments for special school district No. 6, South St. 
Paul, according to section 30.  Adjustment to the school 
district levy may be spread over three years. 
    Sec. 32.  [TAXPAYER NOTIFICATION.] 
    Subdivision 1.  [APPLICABILITY.] This section applies only 
to newly authorized bonding authority granted under Laws 1990, 
chapter 604, article 8, section 9, and applies only to such 
bonds issued for calendar years 1993 to 1996. 
    Subd. 2.  [NOTICE.] (a) A school board must prepare a 
notice of the public meeting on the proposed sale of all or any 
of the bonds and mail the notice to each postal patron residing 
within the school district.  The notice must be mailed at least 
15 days but not more than 30 days before the meeting.  Notice of 
the meeting must also be posted in the administrative office of 
the school district and must be published twice during the 14 
days before the meeting in the official newspaper of the city in 
which the school district is located. 
    (b) The notice must contain the following information: 
    (1) the proposed dollar amount of bonds to be issued; 
    (2) the dollar amount of the levy increase necessary to pay 
the principal and interest on the newly authorized bonds; 
    (3) the estimated levy amount and net tax capacity rate 
necessary to make the debt service payments on any existing 
outstanding debt; 
    (4) the projected effects on individual property types; and 
    (5) the required levy and principal and interest on all 
outstanding bonds in addition to the bonds proposed under clause 
(1). 
    (c) To comply with paragraph (b), clause (4), the notice 
must show the projected annual dollar increase and net tax 
capacity rate increase for a representative range of residential 
homestead, residential nonhomestead, apartments, and 
commercial-industrial properties located within each state 
senate district in the school district. 
    Subd. 3.  [BOND AUTHORIZATION.] A school board may vote to 
issue bonds for calendar years 1993 to 1996 only after complying 
with the requirements of subdivision 2. 
    Sec. 33.  [CAPITAL LOAN USES.] 
    Notwithstanding any other law to the contrary, independent 
school district No. 885, St. Michael-Albertville, may recognize 
an amount not to exceed $325,000 from its maximum effort capital 
loan as capital expenditure equipment revenue.  This amount is 
available to the district and does not return to the state. 
    Sec. 34.  [LEVY ADJUSTMENT.] 
    The department of education shall adjust the 1992 levy for 
taxes payable in 1993 for each school district by the amount of 
debt service equalization aid entitlement for fiscal year 1993.  
    Sec. 35.  [INSTRUCTION TO THE REVISOR.] 
    The revisor of statutes, in the 1992 edition of Minnesota 
Statutes, shall codify Laws 1990, chapter 610, article 1, 
section 45, as Minnesota Statutes, section 124.478, 
notwithstanding any law to the contrary. 
    Sec. 36.  [REPEALER.] 
    Laws 1990, chapter 604, article 8, section 12, is repealed 
the day following final enactment. 
    Section 22 is repealed July 1, 1995.  Levies may continue 
to be made under section 22 until installment contracts and 
lease purchase agreements have been satisfied. 
    Sec. 37.  [EFFECTIVE DATE.] 
    Sections 8, 9, 10, 11, 25, 30, 31, 32, 33, and 36 are 
effective the day following final enactment. 
    Section 3 is effective the day following final enactment 
and applies to 1991-1992 and later school years. 
    Section 1 is effective July 1, 1992, and applies to school 
facilities projects submitted to the commissioner on or after 
July 1, 1992. 
    Section 4 is effective July 1, 1993. 

                               ARTICLE 6 

                      ORGANIZATION AND COOPERATION
    Section 1.  Minnesota Statutes 1991 Supplement, section 
121.932, subdivision 2, is amended to read: 
    Subd. 2.  [DATA ACQUISITION CALENDAR.] The department of 
education shall maintain a current annual data acquisition 
calendar specifying the reports which must be provided districts 
are required to provide to the department, the reports which 
regional management information centers are required to provide 
to the department for their affiliated districts, and the dates 
these reports are due.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
121.932, subdivision 5, is amended to read: 
    Subd. 5.  [ESSENTIAL DATA.] The department shall maintain a 
list of essential data elements which must be recorded and 
stored about each pupil, licensed and nonlicensed staff member, 
and educational program.  Each school district shall send the 
essential data to the ESV regional computer center to which it 
belongs, or where it shall be edited and transmitted to the 
department in the form and format prescribed by the department. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
121.935, subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION.] Any group of two or more 
independent, special or common school districts may with the 
approval of the state board pursuant to sections 121.931 and 
121.937 create a regional management information center pursuant 
to section 123.58 or 471.59 to provide computer services to 
school districts.  A regional management information center 
shall not come into existence until the first July 1 after its 
creation is approved by the state board or until it can be 
accommodated by state appropriations, whichever occurs first.  
Each member of the center board of a center created after June 
30, 1991, shall be a current member of a member school board.  
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
121.935, subdivision 6, is amended to read: 
    Subd. 6.  [FEES.] Regional management information centers 
may charge fees to affiliated districts for the cost of services 
provided to the district and the district's proportionate share 
of outstanding regional obligations, as defined in section 
475.51, for computer hardware.  If a district uses a state 
approved alternative finance system for processing its detailed 
transactions or transfers to another region, the district is 
liable for its contracted proportionate share of the outstanding 
regional obligation.  The district is not liable for any 
additional outstanding regional obligations that occur after 
written notice is given to transfer or use an alternative 
finance system.  A regional management information center must 
not charge a district for transferring the district's summary 
financial data and essential data elements to the state.  The 
regional management information center may charge the district 
for any service it provides to, or performs on behalf of, a 
district to render the data in the proper format for reporting 
to the state.  If a district transfers to another regional 
center, the center shall transfer to the district within 90 days 
after the end of the fiscal year the district's per actual pupil 
share of the center's unreserved fund balance in each fund.  The 
fund balance shall be determined as of June 30 preceding the 
year the district transfers. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
122.22, subdivision 9, is amended to read: 
    Subd. 9.  An order issued under subdivision 8, clause (b), 
shall contain the following: 
    (a) A statement that the district is dissolved unless the 
results of an election held pursuant to subdivision 11 provide 
otherwise; 
    (b) A description by words or plat or both showing the 
disposition of territory in the district to be dissolved; 
    (c) The outstanding bonded debt, outstanding energy loans 
made according to section 216C.37 or sections 298.292 to 
298.298, and the capital loan obligation of the district to be 
dissolved; 
    (d) A statement requiring the fulfillment of the 
requirements imposed by each adjoining district to which 
territory in the dissolving district is to be attached regarding 
the assumption of its outstanding preexisting bonded 
indebtedness by any territory from the dissolving district which 
is attached to it; 
    (e) An effective date for the order.  The effective date 
shall be at least three months after the date of the order, and 
shall be July 1 of an odd-numbered year unless the school board 
and the exclusive representative of the teachers in each 
affected district agree to an effective date of July 1 of an 
even-numbered year.  The agreement must be in writing and 
submitted to the commissioner of education; and 
    (f) Other information the county board may desire to 
include. 
    The auditor shall within ten days from its issuance serve a 
copy of the order by mail upon the clerk of the district to be 
dissolved and upon the clerk of each district to which the order 
attaches any territory of the district to be dissolved and upon 
the auditor of each other county in which all or any part of the 
district to be dissolved or any district to which the order 
attaches territory lies, and upon the commissioner. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
122.23, subdivision 2, is amended to read: 
    Subd. 2.  (a) Upon a resolution of a school board in the 
area proposed for consolidation or upon receipt of a petition 
therefor executed by 25 percent of the voters resident in the 
area proposed for consolidation or by 50 such voters, whichever 
is lesser, the county auditor of the county which contains the 
greatest land area of the proposed new district shall forthwith 
cause a plat to be prepared.  The resolution or petition shall 
show the approximate area proposed for consolidation.  
    (b) The resolution or petition may propose the following: 
    (1) that the bonded debt of the component districts will be 
paid according to the levies previously made for that debt under 
chapter 475, as provided in subdivision 16a, or that the taxable 
property in the newly created district will be taxable for the 
payment of all or a portion of the bonded debt previously 
incurred by any component district as provided in subdivision 
16b 16; 
    (2) that obligations for a capital loan or an energy loan 
made according to section 216C.37 or sections 298.292 to 298.298 
outstanding in a preexisting district as of the effective date 
of consolidation remain solely with the preexisting district 
that obtained the loan, or that all or a portion of the loan 
obligations will be assumed by the newly created or enlarged 
district and paid by the newly created or enlarged district on 
behalf of the preexisting district that obtained the loan; 
    (3) that referendum levies previously approved by voters of 
the component districts pursuant to section 124A.03, subdivision 
2, or its predecessor provision, be combined as provided in 
section 122.531, subdivision 2a or 2b, or that the referendum 
levies be discontinued; 
    (4) that the board of the newly created district consist of 
seven the number of members determined by the component 
districts, which may be six or seven members elected according 
to subdivision 18, or any number of existing school board 
members of the component districts, and a method to gradually 
reduce the membership to six or seven; or 
    (5) that separate election districts from which school 
board members will be elected, the boundaries of these election 
districts, and the initial term of the member elected from each 
of these election districts be established.  If a county auditor 
receives more than one request for a plat and the requests 
involve parts of identical districts, the auditor shall 
forthwith prepare a plat which in the auditor's opinion best 
serves the educational interests of the inhabitants of the 
districts or areas affected.  
    (c) The plat shall show: 
    (1) Boundaries of the proposed district, as determined by 
the county auditor, and present district boundaries, 
    (2) The location of school buildings in the area proposed 
as a new district and the location of school buildings in 
adjoining districts, 
    (3) The boundaries of any proposed separate election 
districts, and 
    (4) Other pertinent information as determined by the county 
auditor. 
    Sec. 7.  Minnesota Statutes 1990, section 122.23, 
subdivision 13, is amended to read: 
    Subd. 13.  If a majority of the votes cast on the question 
at the election approve the consolidation, and if the necessary 
approving resolutions of boards entitled to act on the plat have 
been adopted, the school board shall, within ten days of the 
election, notify the county auditor who shall, within ten days 
of the notice or of the expiration of the period during which an 
election can be called, issue an order setting a date for the 
effective date of the change.  The effective date shall be at 
least three months after the day when the date must be set, and 
shall be July 1 of an odd-numbered year, unless an even-numbered 
year is agreed upon according to subdivision 13a.  The auditor 
shall mail or deliver a copy of such order to each auditor 
holding a copy of the plat and to the clerk of each district 
affected by the order and to the commissioner.  The school board 
shall similarly notify the county auditor if the election 
fails.  The proceedings are then terminated and the county 
auditor shall so notify the commissioner and the auditors and 
the clerk of each school district affected. 
    Sec. 8.  Minnesota Statutes 1990, section 122.241, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMBINATION REQUIREMENTS.] Combining districts 
must be contiguous and meet one of the following requirements at 
the time of combination:  
    (1) at least two districts with at least 400 resident 
pupils enrolled in grades 7 through 12 in the combined district 
and projections, approved by the department of education, of 
enrollment at least at that level for five years; 
    (2) at least two districts, if either: 
    (i) both of which the districts qualify for secondary 
sparsity revenue under section 124A.22, subdivision 6, and have 
an average isolation index over 23; or 
    (ii) the combined district qualifies for secondary sparsity 
revenue; or 
    (3) at least three districts with fewer than 400 resident 
pupils enrolled in grades 7 through 12 in the combined district; 
or 
    (4) at least two districts with fewer than 400 resident 
pupils enrolled in grades 7 through 12 in the combined district 
if either district is located on the border of the state. 
    A combination under clause (2), (3), or (4) must be 
approved by the state board of education.  The state board shall 
disapprove a combination under clause (2), (3), or (4) if the 
combination is educationally unsound or would not reasonably 
enable the districts to fulfill statutory and rule requirements. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
122.242, subdivision 9, is amended to read: 
    Subd. 9.  [FINANCES.] The plan must state:  
    (1) whether debt service for the bonds outstanding at the 
time of combination remains solely with the district that issued 
the bonds or whether all or a portion of the debt service for 
the bonds will be assumed by the combined district and paid by 
the combined district on behalf of the district that issued the 
bonds; 
    (2) whether obligations for a capital loan or energy loan 
made according to section 216C.37 or sections 298.292 to 298.298 
outstanding at the time of combination remain solely with the 
district that obtained the loan, or whether all or a portion of 
all the loan obligations will be assumed by the combined 
district and paid by the combined district on behalf of the 
district that obtained the loan; 
    (3) the treatment of debt service levies and referendum 
levies; 
    (4) whether the cooperating or combined district will levy 
for reorganization operating debt according to section 121.915, 
clause (1); and 
    (5) two-, five-, and ten-year two- and five-year 
projections, prepared by the department of education upon the 
request of any district, of revenues, expenditures, and property 
taxes for each district if it cooperated and combined and if it 
did not. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
122.243, subdivision 2, is amended to read: 
    Subd. 2.  [VOTER APPROVAL.] A referendum on the question of 
combination shall be conducted during the first or second year 
of cooperation for districts that cooperate according to section 
122.241, or no more than 18 months before the effective date of 
combination for districts that do not cooperate.  The referendum 
shall be on a date called by the school boards.  The referendum 
shall be conducted by the school boards according to the 
Minnesota election law, as defined in section 200.01.  If the 
referendum fails, the same question or a modified question may 
be submitted the following school year.  If a question is 
submitted, the second referendum must be conducted on a date 
before October 1.  If the referendum fails again, the districts 
shall modify their cooperation and combination plan.  A third 
referendum may be conducted on any date before October 1.  If a 
second or third referendum is conducted after October 1, the 
newly combined district may not levy under section 124.2725 
until the following year.  Referendums shall be conducted on the 
same date in all districts. 
    Sec. 11.  Minnesota Statutes 1990, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 2d.  [CONSOLIDATION; REFERENDUM LEVY 
COMPUTATION.] The levy part of the referendum revenue authorized 
under subdivision 2a or 2b may be levied against all taxable 
property in the newly created district as provided in this 
subdivision.  If the entire amount of the referendum levy in 
each of the component districts had been levied against the net 
tax capacity of all taxable property in the district, the 
referendum levy for the newly created district must be levied 
against the net tax capacity of all taxable property in the 
newly created district.  If the entire amount of the referendum 
levy in each of the component districts had been levied against 
the market value of all taxable property in the district, the 
referendum levy for the newly created district must be levied 
against the market value of all taxable property in the newly 
created district.  If a part of the referendum levy in one or 
more of the component districts was levied against the net tax 
capacity of all taxable property in the district and a part of 
the referendum levy in one or more of the component districts 
had been levied against the market value of all taxable property 
in the district, and the plan for consolidation so provides, or 
the plan for consolidation makes no provision concerning 
referendum levies, the entire amount of the referendum levy for 
the newly created district must be levied against the net tax 
capacity of all taxable property in the newly created district.  
Alternatively, if a portion of the referendum levy in one or 
more of the component districts had been levied against the net 
tax capacity of all taxable property in the district and a 
portion of the referendum levy in one or more of the component 
districts was levied against the market value of all taxable 
property in the district, and the plan for consolidation so 
provides, the entire amount of the referendum levy for the newly 
created district must be levied against the market value of all 
taxable property in the newly created district. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
122.531, subdivision 4a, is amended to read: 
    Subd. 4a.  [REORGANIZATION OPERATING DEBT LEVIES.] (a) A 
district that is cooperating receives revenue under section 
124.2725 for cooperation or has combined according to sections 
122.241 to 122.248 may levy to eliminate reorganization 
operating debt as defined in section 121.915, clause (1).  The 
amount of the debt must be certified over a period of five years.
After the effective date of combination according to sections 
122.241 to 122.248, the levy may be certified and spread only 
either 
    (1) only on the property in the combined district that 
would have been taxable in the preexisting district that 
incurred the debt, or 
    (2) on all of the taxable property in the combined district.
    (b) A district that has reorganized according to section 
122.22 or 122.23 may levy to eliminate reorganization operating 
debt as defined in section 121.915, clause (2).  The amount of 
debt must be certified over a period not to exceed five years 
and may be spread either only 
    (1) only on the property in the newly created or enlarged 
district which was taxable in the preexisting district that 
incurred the debt, or 
    (2) on all of the taxable property in the newly created or 
enlarged district. 
    Sec. 13.  Minnesota Statutes 1990, section 122.531, is 
amended by adding a subdivision to read: 
    Subd. 9.  [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 
INCENTIVES.] The school board of a newly created or enlarged 
district, according to section 122.22 or 122.23, may levy for 
severance pay or early retirement incentives for licensed and 
nonlicensed employees who resign or retire early as a result of 
the dissolution or consolidation, if the commissioner of 
education approves the incentives and the amount to be levied.  
The amount may be levied over a period of up to five years and 
shall be spread in whole or in part on the property of a 
preexisting district or the newly created or enlarged district, 
as determined by the school board of the newly created or 
enlarged district. 
     Sec. 14.  Minnesota Statutes 1990, section 122.532, 
subdivision 2, is amended to read: 
    Subd. 2.  (a) As of the effective date of any a 
consolidation in which a district is divided or the dissolution 
of any a district and its attachment to one two or more existing 
districts, each teacher employed by an affected district shall 
be assigned to the newly created or enlarged district in which 
is located the building where that teacher was primarily 
employed prior to the consolidation or dissolution and 
attachment on the basis of a ratio of the pupils assigned to 
each district according to the new district boundaries.  The 
district receiving the greatest number of pupils must be 
assigned the teacher with the greatest seniority, and the 
remaining teachers must be alternately assigned to each district 
until the district receiving the fewest pupils has received its 
ratio of teachers who will not be retiring before the effective 
date of the consolidation or dissolution. 
    (b) Notwithstanding paragraph (a), the school board and the 
exclusive representative of teachers in each school district 
involved in the consolidation or dissolution and attachment may 
negotiate a plan for assigning teachers to each newly created or 
enlarged district. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
124.2721, subdivision 3b, is amended to read: 
    Subd. 3b.  [LEVY.] Beginning with the levy attributable to 
fiscal year 1994 and thereafter, the education district levy for 
a school district is equal to the following:  
    (1) the sum of the education district revenue according to 
subdivision 2 2a for all member school districts of the 
education district, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted net tax capacity of the 
education district divided by the number of actual pupil units 
in the education district to the an amount in clause (1) equal 
to $50 divided by 1.87 percent, times 
    (3) the ratio of the adjusted net tax capacity of the 
school district to the total adjusted net tax capacity of the 
education district.  
    Sec. 16.  Minnesota Statutes 1990, section 124.2725, 
subdivision 13, is amended to read: 
    Subd. 13.  [REVENUE FOR EXTENDED COOPERATION.] If the state 
board disapproves of the plan according to section 122.243, 
subdivision 1, or if a second referendum fails under section 
122.243, subdivision 2, cooperation and combination revenue 
shall equal $60 $50 times the actual pupil units.  Cooperation 
and combination aid must be reduced by an amount equal to the 
aid paid under subdivision 6 plus the difference between the aid 
paid under subdivision 5 for the first two years of the 
agreement and the aid that would have been paid if the revenue 
had been $60 $50 times the actual pupil units.  If the aid is 
insufficient to recover the entire amount, the department of 
education shall reduce other aids due the district to recover 
the entire amount.  The cooperation and combination levy shall 
be reduced by an amount equal to the difference between the levy 
for the first two years of the agreement and the levy that would 
have been authorized if the revenue had been $60 $50 times the 
actual pupil units.  A district that receives revenue under this 
subdivision may not also receive revenue according to sections 
124.2721 and 124.575. 
    Sec. 17.  Minnesota Statutes 1990, section 124.2725, 
subdivision 14, is amended to read: 
    Subd. 14.  [CESSATION OF REVENUE.] At any time the 
districts cease cooperating, aid shall not be paid and the 
authority to levy ceases.  If a district ceases to cooperate for 
all or a portion of a fiscal year for which a levy has been 
certified under subdivision 3, the department of education shall 
adjust the next levy certified by the district by an amount in 
proportion to the part of the fiscal year that the district did 
not cooperate. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
124.2727, subdivision 6, is amended to read: 
    Subd. 6.  [ALTERNATIVE LEVY AUTHORITY.] (a) For fiscal 
years prior to fiscal year 1996, an intermediate school district 
may levy, as a single taxing district, according to this 
paragraph, an amount that may not exceed the greater of: 
    (1) five-sixths of the levy certified for special education 
and secondary vocational education for taxes payable in 1989; or 
    (2) the lesser of (i) $50 times the actual pupil units in 
each participating district for the fiscal year to which the 
levy is attributable, or (ii) 1.43 percent of the adjusted net 
tax capacity.  The levy shall be certified according to section 
275.07.  Upon such certification, the county auditors shall levy 
and collect the levies and remit the proceeds of the levy to the 
intermediate school district.  The levies shall not be included 
in computing the limitation upon the levy of any of the 
participating districts. 
    (b) Five-sixths Five-elevenths of the proceeds of the levy 
shall be used for special education.  Six-elevenths of the 
proceeds of the levy shall be used for secondary vocational 
education. 
    (c) To levy according to paragraph (a), a majority of the 
full membership of the school board of each member of the 
intermediate school district shall adopt a resolution in August 
of any year stating its decision not to levy according to this 
section and authorizing the intermediate district to levy 
according to paragraph (a).  Any member district may adopt a 
resolution by the following February 1 or February 1 of any 
subsequent year to levy as a school district the amount 
authorized by this section.  The resolution may or may not also 
contain the school board's decision to withdraw from the 
intermediate school district or to cease participating in or 
providing financial support for any of the services or 
activities of the intermediate school district.  Upon withdrawal 
from or cessation of participation in or support for the 
services or activities of the intermediate district, the board 
of the intermediate district shall pay to the district $50 times 
the number of actual pupil units in the school district, or a 
prorated amount if the member district ceases participation in 
or providing financial support for any activities or services of 
the intermediate district. When a school district joins or 
withdraws from an intermediate school district after July 1, 
1991, the department of education shall recalculate the levy 
certified for taxes payable in 1989, for the purpose of 
determining the levy amount authorized under paragraph (a), 
clause (1), to reflect the change in membership of the 
intermediate school district.  The department shall recalculate 
the levy as though the intermediate school district had 
certified the maximum permitted levy for taxes payable in 1989. 
    This subdivision expires July 1, 1995. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
124.2727, is amended by adding a subdivision to read: 
    Subd. 7.  [CERTIFICATES OF INDEBTEDNESS.] After a levy has 
been certified according to subdivision 6 or 7, an intermediate 
school board may issue and sell certificates of indebtedness in 
anticipation of the collection of levies, but in aggregate 
amounts that will not exceed the portion of the levies which is 
then not collected and not delinquent. 
    Sec. 20.  Minnesota Statutes 1990, section 124A.22, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
following definitions apply to this subdivision:  
    "Public employer" means:  
    (1) a school district; and 
    (2) a public employer, as defined by section 179A.03, 
subdivision 15, other than a school district that (i) negotiates 
a contract under chapter 179A with teachers, and (ii) is 
established by, receives state money, or levies under chapters 
120 to 129, or 136D, or 268A, or section 275.125. 
    "Teacher" means a person, other than a superintendent or 
assistant superintendent, principal, assistant principal, or a 
supervisor or confidential employee who occupies a position for 
which the person must be licensed by the board of teaching, 
state board of education, or state board of technical colleges. 
    (b) Notwithstanding any law to the contrary, a public 
employer and the exclusive representative of the teachers shall 
both sign a collective bargaining agreement on or before January 
15 of an even-numbered calendar year.  If a collective 
bargaining agreement is not signed by that date, state aid paid 
to the public employer for that fiscal year shall be reduced.  
However, state aid shall not be reduced if: 
     (1) a public employer and the exclusive representative of 
the teachers have submitted all unresolved contract items to 
interest arbitration according to section 179A.16 before 
December 31 of an odd-numbered year and filed required final 
positions on all unresolved items with the commissioner of 
mediation services before January 15 of an even-numbered year; 
and 
     (2) the arbitration panel has issued its decision within 60 
days after the date the final positions were filed. 
    For a district that reorganizes according to section 122.22 
or 122.23, effective July 1 of an odd-numbered year, state aid 
shall not be reduced according to this subdivision if the school 
board and the exclusive representative of the teachers both sign 
a collective bargaining agreement on or before the March 15 
following the effective date of reorganization.  This extension 
is available only in the calendar year following the effective 
date of reorganization. 
    (c) The reduction shall equal $25 times the number of 
actual pupil units:  
    (1) for a school district, that are in the district during 
that fiscal year; or 
    (2) for a public employer other than a school district, 
that are in programs provided by the employer during the 
preceding fiscal year. 
    The department of education shall determine the number of 
full-time equivalent actual pupil units in the programs.  The 
department of education shall reduce general education aid; if 
general education aid is insufficient or not paid, the 
department shall reduce other state aids. 
    (d) Reductions from aid to school districts and public 
employers other than school districts shall be returned to the 
general fund. 
    Sec. 21.  Minnesota Statutes 1990, section 136D.22, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BOARD.] The agreement shall provide for a 
joint school board representing the parties to the agreement.  
The agreement shall specify the name of the board, the number 
and manner of election or appointment of its members, their 
terms and qualifications, and other necessary and desirable 
provisions.  Each member of the board shall be a school board 
member of a school district that is a party to the agreement. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
136D.22, subdivision 3, is amended to read: 
    Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT MEMBERSHIP.] (a) No school district shall be required by 
an agreement or otherwise to participate in or provide financial 
support for to be a participating district in an intermediate 
school district for a time period in excess of one fiscal 
year longer than that set forth in this subdivision.  Any 
agreement, part of an agreement, or other type of requirement to 
the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before June 5, 1991.  The school district is liable 
only until the obligation or debt is discharged and only 
according to the payment schedule in effect on June 5, 1991, 
except that the payment schedule may be altered for the purpose 
of restructuring debt or refunding bonds outstanding on June 5, 
1991, if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
its share of outstanding bonds or other debt is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities provided by the 
intermediate district or To withdraw from the an intermediate 
district, the a school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or Withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year, unless the withdrawing 
school district and the intermediate district agree to a 
different date.  The intermediate board shall file a copy of the 
withdrawal resolution with the county auditors of the counties 
in which the intermediate district is located in whole or in 
part.  
    (d) (c) In addition to the requirements of section 
136D.281, before issuing bonds or incurring other debt, the 
board of an intermediate district shall adopt a resolution 
proposing to issue bonds or incur other debt and the proposed 
financial effect of the bonds or other debt upon each 
participating school district.  The resolution shall be adopted 
within a time sufficient to allow the school board to adopt a 
resolution within the time permitted by this paragraph 
subdivision and before any election required by chapter 475 is 
conducted.  The resolution shall also be adopted within a time 
sufficient to allow the intermediate board and the school board 
of a participating district to comply with the statutory 
deadlines set forth in sections 122.895, 125.12, and 125.17.  
The intermediate board shall notify each participating school 
board of a participating school district of the contents of the 
resolution.  Within 120 60 days of receiving the resolution of 
the intermediate board, the school board of the participating 
district shall adopt a resolution stating: 
    (1) its concurrence with issuing bonds or incurring other 
debt; or 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
bonds or other debt; or 
    (3) its intention to withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) (2) is not liable for the 
bonded indebtedness or other debt as proposed by the board of 
the intermediate district.  Failure of a school board to adopt a 
resolution within the required time period shall constitute 
concurrence with issuing bonds or incurring other debt. 
    (e) After June 5, 1991 (d) Except as provided in paragraph 
(c), a school district is that withdraws from the intermediate 
district remains liable according to paragraph (d) for its share 
of bonded indebtedness or other debt incurred by the 
intermediate district to the extent that the bonds or other debt 
are directly related to the services or activities in which the 
school district participates or for which the school district 
provides financial support.  The school district has continued 
liability only until the obligation bonds are retired or the 
debt is discharged and only according to the payment schedule in 
effect at the time the school board of the intermediate district 
provides notice of withdrawal to the school board intermediate 
district, except that the payment schedule may be altered for 
the purpose of refunding the outstanding bonds or restructuring 
other debt if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    (e) For the purposes of this subdivision, "other debt" 
means a contractual obligation for which the intermediate 
district does not have specific authority to levy, except for 
the levy authorized for special education and secondary 
vocational education according to section 124.2727, and for 
which money is not appropriated in the current year's budget.  
It includes tax and aid anticipation certificates of 
indebtedness and warrants; however, the procedures for the 
issuance of tax and aid anticipation certificates and warrants 
shall be the same as those provided in chapters 124 and 475. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
136D.71, subdivision 2, is amended to read: 
    Subd. 2.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT MEMBERSHIP.] (a) No school district shall be required by 
an agreement or otherwise to participate in or provide financial 
support for to be a participating district in an intermediate 
school district for a time period in excess of one fiscal 
year longer than that set forth in this subdivision.  Any 
agreement, part of an agreement, or other type of requirement to 
the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before June 5, 1991.  The school district is liable 
only until the obligation or debt is discharged and only 
according to the payment schedule in effect on June 5, 1991, 
except that the payment schedule may be altered for the purpose 
of restructuring debt or refunding bonds outstanding on June 5, 
1991, if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
its share of outstanding bonds or other debt is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities provided by the 
intermediate district or To withdraw from the an intermediate 
district, the a school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or Withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year, unless the withdrawing 
school district and the intermediate district agree to a 
different date.  The intermediate board shall file a copy of the 
withdrawal resolution with the county auditors of the counties 
in which the intermediate district is located in whole or in 
part.  
    (d) (c) In addition to the requirements of section 
136D.741, before issuing bonds or incurring other debt, the 
board of an intermediate district shall adopt a resolution 
proposing to issue bonds or incur other debt and the proposed 
financial effect of the bonds or other debt upon each 
participating school district.  The resolution shall be adopted 
within a time sufficient to allow the school board to adopt a 
resolution within the time permitted by this paragraph 
subdivision and before any election required by chapter 475 is 
conducted.  The resolution shall also be adopted within a time 
sufficient to allow the intermediate board and the school board 
of a participating district to comply with the statutory 
deadlines set forth in sections 122.895, 125.12, and 125.17.  
The intermediate board shall notify each participating school 
board of a participating school district of the contents of the 
resolution.  Within 120 60 days of receiving the resolution of 
the intermediate board, the school board of the participating 
district shall adopt a resolution stating: 
    (1) its concurrence with issuing bonds or incurring other 
debt; or 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
bonds or other debt; or 
    (3) its intention to withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) (2) is not liable for the 
bonded indebtedness or other debt as proposed by the board of 
the intermediate district.  Failure of a school board to adopt a 
resolution within the required time period shall constitute 
concurrence with issuing bonds or incurring other debt. 
    (e) After June 5, 1991 (d) Except as provided in paragraph 
(c), a school district is that withdraws from the intermediate 
district remains liable according to paragraph (d) for its share 
of bonded indebtedness or other debt incurred by the 
intermediate district to the extent that the bonds or other debt 
are directly related to the services or activities in which the 
school district participates or for which the school district 
provides financial support.  The school district has continued 
liability only until the obligation bonds are retired or the 
debt is discharged and only according to the payment schedule in 
effect at the time the school board of the intermediate district 
provides notice of withdrawal to the school board intermediate 
district, except that the payment schedule may be altered for 
the purpose of refunding the outstanding bonds or restructuring 
other debt if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    (e) For the purposes of this subdivision, "other debt" 
means a contractual obligation for which the intermediate 
district does not have specific authority to levy, except for 
the levy authorized for special education and secondary 
vocational education according to section 124.2727, and for 
which money is not appropriated in the current year's budget.  
It includes tax and aid anticipation certificates of 
indebtedness and warrants; however, the procedures for the 
issuance of tax and aid anticipation certificates and warrants 
shall be the same as those provided in chapters 124 and 475. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
136D.72, subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERS.] The district shall be operated 
by a school board consisting of at least one member from each of 
the school districts within the special intermediate school 
district.  Board members shall be members of the school boards 
of the respective school districts and shall be appointed by 
their respective school boards.  Members shall serve at the 
pleasure of their respective school boards and may be subject to 
recall by a majority vote of the school board.  They shall 
report at least quarterly to their boards on the activities of 
the intermediate district.  
    Sec. 25.  Minnesota Statutes 1990, section 136D.75, is 
amended to read: 
    136D.75 [STATE BOARD APPROVAL TO RUN TECHNICAL COLLEGE, 
ISSUE BONDS.] 
    Prior to the commencement of the operation of any technical 
college, the intermediate school board shall obtain the approval 
of the state board of education.  Prior to the issuance of any 
bonds contemplated by sections 136D.71 to 136D.77 for 
post-secondary technical education, written approval by the 
state board of education technical colleges shall be obtained. 
    Sec. 26.  Minnesota Statutes 1991 Supplement, section 
136D.76, subdivision 2, is amended to read: 
    Subd. 2.  [JOINDER.] An independent school district must 
receive the approval of the state board of education and the 
state board of technical colleges to become a participant in the 
intermediate school district.  Thereafter, Upon approval of the 
majority vote of its the school district board and of the 
intermediate school board and without the requirement for an 
election, independent school district No. 138 of Chisago and 
Isanti counties and independent school district No. 141 of 
Chisago and Washington counties, and any other independent 
school district adjoining the territory embraced in the 
intermediate school district may become a participant in the 
intermediate school district and be governed by the provisions 
of sections 136D.71 to 136D.77 thereafter.  The net tax capacity 
of the property within the geographic confines of such district 
shall become proportionately liable for any indebtedness issued, 
outstanding or authorized of the intermediate school district. 
    Sec. 27.  Minnesota Statutes 1990, section 136D.82, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BOARD.] The agreement shall provide for a 
joint school board representing the parties to the agreement.  
The agreement shall specify the name of the board, the number 
and manner of election or appointment of its members, their 
terms and qualifications, and other necessary and desirable 
provisions.  Each member of the board shall be a school board 
member of a school district that is a party to the agreement.  
    Sec. 28.  Minnesota Statutes 1991 Supplement, section 
136D.82, subdivision 3, is amended to read: 
    Subd. 3.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT MEMBERSHIP.] (a) No school district shall be required by 
an agreement or otherwise to participate in or provide financial 
support for to be a participating district in an intermediate 
school district for a time period in excess of one fiscal 
year longer than that set forth in this subdivision.  Any 
agreement, part of an agreement, or other type of requirement to 
the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred by the intermediate school 
district before June 5, 1991.  The school district is liable 
only until the obligation or debt is discharged and only 
according to the payment schedule in effect on June 5, 1991, 
except that the payment schedule may be altered for the purpose 
of restructuring debt or refunding bonds outstanding on June 5, 
1991, if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
its share of outstanding bonds or other debt is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities provided by the 
intermediate district or To withdraw from the an intermediate 
district, the a school board shall adopt a resolution and notify 
the intermediate board of its decision on or before February 1 
of any year.  The cessation or Withdrawal shall be effective 
June 30 of the same year or, at the option of the school board, 
June 30 of the following fiscal year, unless the withdrawing 
school district and the intermediate district agree to a 
different date.  The intermediate board shall file a copy of the 
withdrawal resolution with the county auditors of the counties 
in which the intermediate district is located in whole or in 
part.  
    (d) (c) In addition to the requirements of section 136D.88, 
before issuing bonds or incurring other debt, the board of an 
intermediate district shall adopt a resolution proposing to 
issue bonds or incur other debt and the proposed financial 
effect of the bonds or other debt upon each participating school 
district.  The resolution shall be adopted within a time 
sufficient to allow the school board to adopt a resolution 
within the time permitted by this paragraph subdivision and 
before any election required by chapter 475 is conducted.  The 
resolution shall also be adopted within a time sufficient to 
allow the intermediate board and the school board of a 
participating district to comply with the statutory deadlines 
set forth in sections 122.895, 125.12, and 125.17.  The 
intermediate board shall notify each participating school board 
of a participating school district of the contents of the 
resolution.  Within 120 60 days of receiving the resolution of 
the intermediate board, the school board of the participating 
district shall adopt a resolution stating: 
    (1) its concurrence with issuing bonds or incurring other 
debt; or 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
bonds or other debt; or 
    (3) its intention to withdraw from the intermediate 
district. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the board of the intermediate district.  A school 
board adopting a resolution according to clause (2) is not 
liable for the bonded indebtedness or other debt, as proposed by 
the board of the intermediate district, related to the services 
or activities in which the school district ceases participating 
or providing financial support.  A school board adopting a 
resolution according to clause (3) (2) is not liable for the 
bonded indebtedness or other debt as proposed by the board of 
the intermediate district.  Failure of a school board to adopt a 
resolution within the required time period shall constitute 
concurrence with issuing bonds or incurring other debt. 
    (e) After June 5, 1991 (d) Except as provided in paragraph 
(c), a school district is that withdraws from the intermediate 
district remains liable according to paragraph (d) for its share 
of bonded indebtedness or other debt incurred by the 
intermediate district to the extent that the bonds or other debt 
are directly related to the services or activities in which the 
school district participates or for which the school district 
provides financial support.  The school district has continued 
liability only until the obligation bonds are retired or the 
debt is discharged and only according to the payment schedule in 
effect at the time the school board of the intermediate district 
provides notice of withdrawal to the school board intermediate 
district, except that the payment schedule may be altered for 
the purpose of refunding the outstanding bonds or restructuring 
other debt if the annual payments of the school district are not 
increased and if the total obligation of the school district for 
the outstanding bonds or other debt is not increased. 
    (e) For the purposes of this subdivision, "other debt" 
means a contractual obligation for which the intermediate 
district does not have specific authority to levy, except for 
the levy authorized for special education and secondary 
vocational education according to section 124.2727, and for 
which money is not appropriated in the current year's budget.  
It includes tax and aid anticipation certificates of 
indebtedness and warrants; however, the procedures for the 
issuance of tax and aid anticipation certificates and warrants 
shall be the same as those provided in chapters 124 and 475. 
    Sec. 29.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 8f.  [SPECIAL COOPERATION LEVY.] (a) This subdivision 
does not apply to an education district, intermediate school 
district, secondary vocational cooperative, special education 
cooperative, or a joint powers district that received a grant 
for a cooperative secondary facility.  A school district may 
levy under this subdivision for taxes payable in 1993, 1994, and 
1995 if it: 
    (1) has more than 30,000 actual pupil units; 
    (2) is not a member of intermediate school district No. 
287, 916, or 917; 
    (3) provides special education services to at least 3,200 
resident and 100 nonresident pupils; 
    (4) develops model curricula for use by nonresident special 
education pupils; 
    (5) consults with other school districts on developing 
individual education plans for nonresident special education 
pupils on a regular or emergency basis; 
    (6) provides secondary vocational programs to resident and 
nonresident at-risk youths; 
    (7) provides pregnant teen and teen parent programs to 
resident and nonresident pupils; and 
    (8) provides staff development programs and material for 
teachers in other districts. 
    (b) The levy may not exceed $50 times the number of actual 
pupil units in the district. 
    A school district may recognize 50 percent of the proceeds 
of the levy in the fiscal year it is certified. 
    (c) The proceeds of the levy shall be used for special 
education and secondary vocational education. 
    Sec. 30.  Minnesota Statutes 1991 Supplement, section 
275.125, subdivision 11g, is amended to read: 
    Subd. 11g.  [EXTRA CAPITAL EXPENDITURE LEVY FOR INTERACTIVE 
TELEVISION.] A school district with its central administrative 
office located within economic development region one, two, 
three, four, five, six, seven, eight, nine, and ten may levy up 
to the greater of .5 percent of the adjusted net tax capacity of 
the district or $20,000 for the construction, maintenance, and 
lease costs of an interactive television system for 
instructional purposes.  The approval by the commissioner of 
education and the application procedures set forth in 
subdivision 11d shall apply to the levy authority in this 
subdivision. 
    Sec. 31.  Laws 1991, chapter 265, article 6, section 67, 
subdivision 3, is amended to read: 
    Subd. 3.  [JULY 1, 1993.] Minnesota Statutes 1990, sections 
121.935, subdivision 5; 121.91 122.91, subdivision 7; 122.945, 
subdivision 4; 124.2721, subdivision 3a; and 124.535, 
subdivision 3a. 
    Sec. 32.  [REORGANIZATION OPERATING DEBT FOR CERTAIN 
DISTRICTS.] 
    Notwithstanding Minnesota Statutes, section 121.915, if 
independent school districts No. 237, Spring Valley; and No. 
236, Wykoff, conduct a successful referendum in 1992 on the 
question of combination, the reorganization operating debt for 
independent school districts No. 237, Spring Valley; and No. 
236, Wykoff, shall be calculated according to Minnesota 
Statutes, section 121.915, except that the debt may be 
calculated as of June 30, 1993. 
    Sec. 33.  [PREK-12 AND COMMUNITY EDUCATION SERVICE DELIVERY 
SYSTEM.  
    Subdivision 1.  [PURPOSE.] The purpose of this section is 
to design and implement a statewide delivery system for 
educational services that will reduce the number of different 
cooperative organizations and the multiple levels of 
administration that accompany those organizations. 
    Subd. 2.  [SCOPE OF THE SYSTEM.] (a) A new statewide 
delivery system shall be designed and implemented by July 1, 
1995, for all prekindergarten through grade 12 and community 
education services provided by the organizations enumerated in 
this paragraph: 
    (1) the Minnesota department of education; 
    (2) educational cooperative service units established under 
Minnesota Statutes, section 123.58; 
    (3) intermediate school districts established under 
Minnesota Statutes, chapter 136D; 
    (4) education districts established under Minnesota 
Statutes, section 122.91; 
    (5) regional management information centers established 
under Minnesota Statutes, section 121.935; and 
    (6) secondary vocational cooperatives established under 
Minnesota Statutes, section 123.351. 
    Subd. 3.  [REQUIREMENTS FOR THE SYSTEM.] The new statewide 
delivery system must provide for no more than three 
organizations for education service delivery; 
    (1) a school district, as defined in Minnesota Statutes, 
chapter 123; 
    (2) an area education organization to provide those 
programs and services most efficiently and effectively provided 
through a joint effort of school districts; and 
    (3) a state level administrative organization comprised of 
a state board of education and a state department of education 
with central and regional delivery centers. 
    Subd. 4.  [LOCAL SCHOOL DISTRICT PLANNING.] School 
districts shall develop a plan for the efficient and effective 
delivery of educational programs and services within the new 
education delivery system.  The plan developed by the districts 
must contain the components enumerated in this subdivision: 
     (1) a description of the necessary services to be provided 
by the school district, the area education organization, and the 
central and regional delivery centers of the department of 
education described in subdivision 3; 
     (2) a specification of the optimal number of school 
districts and number of pupils that an area education 
organization and regional center of the department of education 
should serve; 
    (3) a method for determining the boundaries of area 
education organizations and regional centers of the department; 
    (4) a description of how services provided in the area 
education organizations should be funded; and 
    (5) a determination of the role of the school district, the 
area education organization, and the central and regional 
centers of the department in ensuring that health and other 
social services necessary to maximize a pupil's ability to learn 
are provided to pupils. 
    Subd. 5.  [SCHOOL DISTRICTS.] The school districts shall 
make a final report to the legislature by July 1, 1994.  The 
final report must contain recommendations for the design of an 
education service delivery system in accordance with this 
section and recommendations for legislation required to 
implement the system. 
    Sec. 34.  [COOPERATION REVENUE.] 
    Subdivision 1.  Notwithstanding any other law to the 
contrary, if the members of a joint school district that 
received a cooperative secondary facilities grant under section 
124.494 on or before May 1, 1991, meet the requirements of 
Minnesota Statutes 1990, sections 122.241 to 122.246, they shall 
be eligible for revenue under Minnesota Statutes, section 
124.2725. 
    Subd. 2.  The authority in subdivision 1 expires if the 
members of the joint school district have not combined according 
to Minnesota Statutes 1990, section 122.244, by July 1, 1996. 
    Sec. 35.  [LAC QUI PARLE COOPERATION LEVY.] 
     (a) Joint school district No. 6011, Lac Qui Parle Valley, 
may certify a levy on all the taxable property in the joint 
district for costs associated with the establishment of the 
joint district.  The levy authorized under this section must not 
exceed $400,000 in total and must be certified in equal amounts 
over each year of a five-year period. 
    (b) Notwithstanding paragraph (a), if the members of joint 
school district No. 6011 do not combine under Minnesota 
Statutes, section 122.244 by July 1, 1996, authority to levy 
under this section ceases. 
    Sec. 36.  [INTERMEDIATE LEVY INCREASE.] 
    Notwithstanding any law to the contrary, to restore a 
portion of the revenue reduction imposed by Laws 1991, chapter 
265, article 6, section 60, paragraph (b), an intermediate 
school district may levy in 1992 for taxes payable in 1993 up to 
an amount equal to one-sixth of the 1990 payable 1991 levy for 
special education and secondary vocational education certified 
by the intermediate school district times 21/27.  
    Sec. 37.  [SECONDARY VOCATIONAL COOPERATIVE LEVY ADJUSTMENT 
FOR FISCAL YEAR 1993.] 
    Notwithstanding any other law to the contrary, a school 
district that certified a levy under Minnesota Statutes, section 
124.575, subdivision 3, in 1991 for taxes payable in 1992 may 
levy in 1992 for taxes payable in 1993 up to an amount equal to: 
    (1) the amount of aid calculated for fiscal year 1993 under 
Minnesota Statutes, section 124.575, subdivision 4, for the 
secondary vocational cooperative to which the school district 
belonged, times 
    (2) the ratio of the adjusted net tax capacity of the 
school district to the adjusted net tax capacity of the 
secondary vocational cooperative. 
    The amount of levy permitted under this section shall be 
transferred to the secondary vocational cooperative according to 
Minnesota Statutes, section 124.575, subdivision 3a. 
    Sec. 38.  [EDUCATION DISTRICT LEVY ADJUSTMENT FOR FISCAL 
YEAR 1993.] 
    Notwithstanding any other law to the contrary, a school 
district that certified a levy under Minnesota Statutes, section 
124.2721, subdivision 3, in 1991 for taxes payable in 1992 may 
levy in 1992 for taxes payable in 1993 up to an amount equal to: 
    (1) the amount of aid calculated for fiscal year 1993 under 
Minnesota Statutes, section 124.2721, subdivision 4, for the 
education district to which the school district belonged, times 
    (2) the ratio of the adjusted net tax capacity of the 
school district to the adjusted net tax capacity of the 
education district. 
    The amount of the levy permitted under this section shall 
be transferred to the education district board according to 
Minnesota Statutes, section 124.2721, subdivision 3a. 
    Sec. 39.  [REPEALER.] 
    Subdivision 1.  [JUNE 1991.] Minnesota Statutes 1990, 
section 136D.76, subdivision 3; Minnesota Statutes 1991 
Supplement, sections 124.2727, subdivisions 1, 2, 3, 4, and 5; 
and 136D.90, subdivision 2, are repealed as of June 1, 1991. 
    Subd. 2.  [JULY 1, 1992.] Minnesota Statutes 1990, section 
136D.74, subdivision 3; Laws 1991, chapter 265, article 6, 
section 64; Laws 1991, chapter 265, article 6, sections 4, 20, 
22 to 26, 28, 30 to 33, and 41 to 45, are repealed. 
    Subd. 3.  [EXPIRATION.] Minnesota Statutes 1990, chapter 
136D, as amended, sections 121.935, 122.91 to 122.95, 123.351, 
123.358, and 124.575, and Minnesota Statutes 1991, sections 
124.2721 and 124.2727 expire as of July 1, 1995. 
    Sec. 40.  [EFFECTIVE DATE.] 
    Sections 18, 22, 23, and 28 are effective retroactively to 
June 1, 1991. 

                               ARTICLE 7 

                          OTHER PROGRAM FUNDING
    Section 1.  Minnesota Statutes 1991 Supplement, section 
121.912, subdivision 6, is amended to read: 
    Subd. 6.  [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] (a)
A school district that has reorganized according to section 
122.22, 122.23, or sections 122.241 to 122.248 may make 
permanent transfers between any of the funds in the newly 
created or enlarged district with the exception of the debt 
redemption fund.  Fund transfers under this section may be made 
only during the year following the effective date of 
reorganization. 
    (b) A district that has conducted a successful referendum 
on the question of combination under section 122.243, 
subdivision 2, may make permanent transfers between any of the 
funds in the district with the exception of the debt redemption 
fund for up to one year prior to the effective date of 
combination under sections 122.241 to 122.248. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
124.2615, subdivision 2, is amended to read: 
    Subd. 2.  [AMOUNT OF AID.] A district is eligible to 
receive learning readiness aid if the program plan as required 
by subdivision 1 has been approved by the commissioner of 
education.  For fiscal year 1992, The aid is equal to: 
    (1) $200 for fiscal year 1992 and $300 for fiscal year 1993 
times the number of eligible four-year old children residing in 
the district, as determined according to section 124.2711, 
subdivision 2; plus 
    (2) $100 for fiscal year 1992 and $300 for fiscal year 1993 
times the result of; 
    (3) the ratio of the number of pupils enrolled in the 
school district from families eligible for the free or reduced 
school lunch program to the total number of pupils enrolled in 
the school district; times 
    (4) the number of children in clause (1). 
    For fiscal year 1993 1994 and thereafter, a district shall 
receive learning readiness aid equal to: 
    (1) $500 times the number of all participating eligible 
children; plus 
    (2) $200 times the number of participating eligible 
children identified according to section 121.831, subdivision 8. 
    Sec. 3.  Minnesota Statutes 1990, section 124.85, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISTRICT ACTION.] A district may enter into a 
guaranteed energy savings contract with a qualified provider if, 
after review of the report, it finds that the amount it would 
spend on the energy conservation measures recommended in the 
report is not likely to exceed the amount to be saved in energy 
and operation costs over ten years from the date of installation 
if the recommendations in the report were followed, and the 
qualified provider provides a written guarantee that the energy 
or operating cost savings will meet or exceed the costs of the 
system.  The guaranteed energy savings contract may provide for 
payments over a period of time, not to exceed ten 
years.  Notwithstanding section 121.912, a district annually may 
transfer from the general fund to the capital expenditure fund 
an amount up to the amount saved in energy and operation costs 
as a result of guaranteed energy savings contracts. 
    Sec. 4.  [124A.697] [TITLE.] 
    Sections 4 to 8 may be cited as the "Minnesota education 
finance act of 1992." 
    Sec. 5.  [124A.70] [BASIC INSTRUCTIONAL AID.] 
    Subdivision 1.  [BASIC OUTCOMES.] Basic outcomes are 
defined as learner outcomes that must be achieved as a 
requirement for graduation, specified in rule by the state board 
of education.  Basic outcomes are those outcomes that have 
standards of achievement determined by the state board. 
    Subd. 2.  [AID AMOUNT.] Basic instructional aid is equal to 
the aid allowance times the number of pupil units for the school 
year.  The aid allowance for fiscal year 2000 and thereafter is 
zero. 
    Subd. 3.  [SPECIAL NEED AID.] Each district shall receive 
special need aid equal to zero times the number of actual pupil 
units for the school year times the district's special need 
index. 
    Subd. 4.  [COST DIFFERENTIAL AID.] Each district shall 
receive aid equal to zero times the number of actual pupil units 
for the school year times its cost differential index.  This aid 
is only available if the district has implemented a career 
teacher program. 
    Subd. 5.  [AID USES.] Aid received under this section may 
only be used to deliver instructional services needed to assure 
that all pupils in the district achieve basic outcomes through 
the following uses: 
    (1) salaries and benefits for licensed and nonlicensed 
instructional staff used to instruct or direct instructional 
delivery or provide academic instructional support services; 
    (2) instructional supplies and resources including, but not 
limited to, curricular materials, maps, individualized 
instructional materials, test materials, and other related 
supplies; 
    (3) tuition payments to other service providers for direct 
instruction or instructional materials; and 
    (4) computers, interactive television, and other 
technologically related equipment used in the direct delivery of 
instruction. 
    Sec. 6.  [124A.71] [ELECTIVE INSTRUCTIONAL REVENUE.] 
    Subdivision 1.  [ELECTIVE OUTCOMES.] Elective outcomes are 
defined as learner outcomes that may be offered to students that 
are not defined as basic outcomes.  The standards of achievement 
of elective outcomes are determined by the local school board. 
    Subd. 2.  [REVENUE.] Elective instructional revenue is 
equal to the elective instructional revenue allowance times the 
number of pupil units for the school year.  The revenue 
allowance for fiscal year 2000 and thereafter is zero. 
    Subd. 3.  [LEVY.] Elective instructional levy is equal to 
elective instructional revenue times the lesser of one or the 
ratio of: 
    (1) net tax capacity divided by the number of pupil units 
for the year the revenue is attributable, divided by 
    (2) the equalizing factor. 
    Subd. 4.  [AID.] Elective instructional aid is equal to 
elective instructional revenue minus elective instructional 
levy.  If a district levies less than the authorized amount, the 
aid shall be reduced proportionately. 
    Subd. 5.  [REVENUE USE.] Elective instructional revenue may 
only be used for the following purposes: 
    (1) salaries and benefits for licensed and nonlicensed 
instructional staff used to instruct or direct instructional 
delivery; 
    (2) instructional supplies and resources including, but not 
limited to, curricular materials, maps, individualized 
instructional materials, test materials, and other related 
supplies; 
    (3) tuition payments to other service providers for direct 
instruction or instructional materials; 
    (4) computers, interactive television, and other 
technologically related equipment used in the direct delivery of 
instruction; 
    (5) instructional support services including staff 
development, curriculum development, and other instructional 
support services; 
    (6) pupil support services including health, counseling, 
and psychological services; 
    (7) administrative costs that are not to exceed five 
percent of the operating budget for the year; and 
    (8) school district facility operations and maintenance. 
    Sec. 7.  [124A.72] [LOCAL DISCRETIONARY REVENUE.] 
    Subdivision 1.  [LOCAL DISCRETIONARY REVENUE.] Local 
discretionary revenue is available for districts to implement 
programs to offer outcomes or to cover other district operating 
expenditures not provided according to sections 4 and 5. 
    Subd. 2.  [REVENUE.] A district's local discretionary 
revenue is equal to the amount authorized according to section 
124A.03.  Revenue may not exceed zero times the actual pupil 
units for the year the revenue is attributable. 
    Subd. 3.  [LEVY.] Local discretionary levy is equal to 
local discretionary revenue times the lesser of one or the ratio 
of: 
    (1) net tax capacity divided by the number of pupil units 
for the year the revenue is attributable, divided by 
    (2) the equalizing factor. 
    Subd. 4.  [AID.] Local discretionary aid is equal to local 
discretionary revenue minus local discretionary levy.  If a 
district levies less than the authorized amount, the aid shall 
be reduced proportionately. 
    Sec. 8.  [124A.73] [EDUCATION TRUST FUND.] 
    Subdivision 1.  [CREATION.] The commissioner shall deposit 
to the credit of the education trust fund all money available to 
the credit of the trust.  The commissioner shall maintain the 
trust as a separate fund to be used only to pay money as 
provided by law to school districts or to repay advances made 
from the general fund, as provided under subdivision 4. 
    Subd. 2.  [APPROPRIATION.] The money to be paid by law from 
the education trust fund is appropriated annually. 
    Subd. 3.  [ESTIMATES; REDUCTION OF PAYMENTS.] (a) At the 
beginning of each fiscal year, the commissioner, in consultation 
with the commissioner of revenue, shall estimate for the fiscal 
year: 
    (1) the amount of revenues to be deposited in the trust 
fund and other law; and 
    (2) the payments authorized by law to be made out of the 
trust. 
    (b) If the estimated payments exceed the estimated receipts 
of the trust fund, the appropriations from the trust to each 
program are proportionately reduced, unless otherwise provided 
by law. 
    Subd. 4.  [GENERAL FUND ADVANCE.] If the money in the trust 
fund is insufficient to make payments on the dates provided by 
law, but the commissioner estimates receipts for the fiscal year 
will be sufficient, the commissioner shall advance money from 
the general fund to the trust fund necessary to make the 
payments.  On or before the close of the biennium, the trust 
shall repay the advances with interest, calculated at the rate 
of earnings on invested treasurer's cash, to the general fund. 
    Sec. 9.  [124C.62] [SUMMER HEALTH CARE INTERNS.] 
    Subdivision 1.  [SUMMER INTERNSHIPS.] The commissioner of 
education shall award grants to hospitals and clinics to 
establish a summer health care intern program for pupils who 
intend to complete high school graduation requirements and who 
are between their junior and senior year of high school.  The 
purpose of the program is to expose interested high school 
pupils to various careers within the health care profession. 
    Subd. 2.  [CRITERIA.] (a) The commissioner, with the advice 
of the Minnesota medical association and the Minnesota hospital 
association, shall establish criteria for awarding grants to 
hospitals and clinics.  
    (b) The criteria must include, among other things: 
    (1) the kinds of formal exposure to the health care 
profession a hospital or clinic can provide to a pupil; 
    (2) the need for health care professionals in a particular 
area; and 
    (3) the willingness of a hospital or clinic to pay one-half 
the costs of employing a pupil. 
    (c) The Minnesota medical association and the Minnesota 
hospital association must provide the commissioner, by January 
31, 1993, with a list of hospitals and clinics willing to 
participate in the program and what provisions those hospitals 
or clinics will make to ensure a pupil's adequate exposure to 
the health care profession, and indicate whether a hospital or 
clinic is willing to pay one-half the costs of employing a pupil.
    Subd. 3.  [GRANTS.] The commissioner shall award grants to 
hospitals and clinics meeting the requirements of subdivision 
2.  The grants must be used to pay one-half of the costs of 
employing a pupil in a hospital or clinic during the course of 
the program.  No more than five pupils may be selected from any 
one high school to participate in the program and no more than 
one-half of the number of pupils selected may be from the 
seven-county metropolitan area. 
    Sec. 10.  [126.239] [ADVANCED PLACEMENT AND INTERNATIONAL 
BACCALAUREATE PROGRAMS.] 
    Subdivision 1.  [TRAINING PROGRAMS FOR TEACHERS.] A 
secondary teacher assigned by a school district to teach an 
advanced placement or international baccalaureate course may 
participate in a training program offered by the college board 
or International Baccalaureate North America, Inc.  The state 
may pay a portion of the tuition, room, and board costs a 
teacher incurs in participating in a training program.  The 
commissioner of education shall determine application procedures 
and deadlines, and select teachers to participate in the 
training program.  The procedures determined by the commissioner 
shall, to the extent possible, ensure that advanced placement 
and international baccalaureate courses become available in all 
parts of the state and that a variety of course offerings are 
available in school districts.  This subdivision does not 
prevent teacher participation in training programs offered by 
the college board or International Baccalaureate North America, 
Inc., when tuition is paid by a source other than the state. 
    Subd. 2.  [SUPPORT PROGRAMS.] The commissioner shall 
provide support programs during the school year for teachers who 
attended the training programs and teachers experienced in 
teaching advanced placement or international baccalaureate 
courses.  The support programs shall provide teachers with 
opportunities to share instructional ideas with other teachers.  
The state may pay the costs of participating in the support 
programs, including substitute teachers, if necessary, and 
program affiliation costs. 
    Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
all or part of the fee for advanced placement or international 
baccalaureate examinations for pupils in public and nonpublic 
schools whose circumstances make state payment advisable.  The 
state board of education shall adopt a schedule for fee 
subsidies that may allow payment of the entire fee for 
low-income families, as defined by the state board.  The state 
board may also determine the circumstances under which the fee 
is subsidized, in whole or in part.  The state board shall 
determine procedures for state payments of fees. 
    Subd. 4.  [INFORMATION.] The commissioner shall submit the 
following information to the education committees of the 
legislature each year by January 1: 
    (1) the number of pupils enrolled in advanced placement and 
international baccalaureate courses in each school district; 
    (2) the number of teachers in each district attending 
training programs offered by the college board or International 
Baccalaureate North America, Inc.; 
    (3) the number of teachers in each district participating 
in support programs; 
    (4) recent trends in the field of advanced placement and 
international baccalaureate programs; 
    (5) expenditures for each category in this section; and 
    (6) other recommendations for the state program. 
    Sec. 11.  Minnesota Statutes 1991 Supplement, section 
275.125, subdivision 6j, is amended to read: 
    Subd. 6j.  [LEVY FOR CRIME RELATED COSTS.] For taxes levied 
in 1991 and subsequent years, payable in 1992 only and 
subsequent years, each school district may make a levy on all 
taxable property located within the school district for the 
purposes specified in this subdivision.  The maximum amount 
which may be levied for all costs under this subdivision shall 
be equal to $1 multiplied by the population of the school 
district.  For purposes of this subdivision, "population" of the 
school district means the same as contained in section 275.14.  
The proceeds of the levy must be used for reimbursing the cities 
and counties who contract with the school district for the 
following purposes:  (1) to pay the costs incurred for the 
salaries, benefits, and transportation costs of peace officers 
and sheriffs for liaison services in the district's middle and 
secondary schools, and (2) to teach drug abuse resistance 
education curricula pay the costs for a drug abuse prevention 
program as defined in section 609.101, subdivision 3, paragraph 
(f) in the elementary schools, and (3) to pay the costs incurred 
for the salaries and benefits of peace officers and sheriffs 
whose primary responsibilities are to investigate controlled 
substance crimes under chapter 152.  The school district must 
initially attempt to contract for these services with the police 
department of each city or the sheriff's department of the 
county within the school district containing the school 
receiving the services.  If a local police department or a 
county sheriff's department does not wish to provide the 
necessary services, the district may contract for these services 
with any other police or sheriff's department located entirely 
or partially within the school district's boundaries.  The levy 
authorized under this subdivision is not included in determining 
the school district's levy limitations and must be disregarded 
in computing any overall levy limitations under sections 275.50 
to 275.56 of the participating cities or counties. 
    Sec. 12.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 6k.  [HEALTH INSURANCE LEVY.] (a) A school district 
may levy the amount necessary to make employer contributions for 
insurance for retired employees under this subdivision.  
Notwithstanding section 121.904, 50 percent of the amount levied 
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. 
    (b) The school board of a joint vocational technical 
district formed under sections 136C.60 to 136C.69 and the school 
board of a school district may provide employer-paid hospital, 
medical, and dental benefits to a person who: 
    (1) is eligible for employer-paid insurance under 
collective bargaining agreements or personnel plans in effect on 
the day before the effective date of this section; 
    (2) has at least 25 years of service credit in the public 
pension plan of which the person is a member on the day before 
retirement or, in the case of a teacher, has a total of at least 
25 years of service credit in the teachers retirement 
association, a first-class city teacher retirement fund, or any 
combination of these; 
    (3) upon retirement is immediately eligible for a 
retirement annuity; 
    (4) is at least 55 and not yet 65 years of age; and 
    (5) retires on or after May 15, 1992, and before July 21, 
1992. 
    A school board paying insurance under this subdivision may 
not exclude any eligible employees. 
    (c) An employee who is eligible both for the health 
insurance benefit under this subdivision and for an early 
retirement incentive under a collective bargaining agreement or 
personnel plan established by the employer must select either 
the early retirement incentive provided under the collective 
bargaining agreement personnel plan or the incentive provided 
under this subdivision, but may not receive both.  For purposes 
of this subdivision, a person retires when the person terminates 
active employment and applies for retirement benefits.  The 
retired employee is eligible for single and dependent coverages 
and employer payments to which the person was entitled 
immediately before retirement, subject to any changes in 
coverage and employer and employee payments through collective 
bargaining or personnel plans, for employees in positions 
equivalent to the position from which the employee retired.  The 
retired employee is not eligible for employer-paid life 
insurance.  Eligibility ceases when the retired employee attains 
the age of 65, or when the employee chooses not to receive the 
retirement benefits for which the employee has applied, or when 
the employee is eligible for employer-paid health insurance from 
a new employer.  Coverages must be coordinated with relevant 
health insurance benefits provided through the federally 
sponsored Medicare program.  
    (d) An employee who retires under this subdivision using 
the rule of 90 must not be included in the calculations required 
by section 356.85. 
    (e) Unilateral implementation of this section by a public 
employer is not an unfair labor practice for purposes of chapter 
179A.  The authority provided in this subdivision for an 
employer to pay health insurance costs for certain retired 
employees is not subject to the limits in section 179A.20, 
subdivision 2a. 
     (f) If a school district levies according to this 
subdivision, it may not also levy according to article 6, 
section 9, for eligible employees. 
    Sec. 13.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 24.  [RETIRED EMPLOYEE HEALTH BENEFITS LEVY.] For 
taxes payable in 1993 and 1994 only, a school district may levy 
an amount up to the amount the district is required by the 
collective bargaining agreement in effect on March 30, 1992, to 
pay for health insurance or unreimbursed medical expenses for 
licensed and nonlicensed employees who have terminated services 
in the employing district and withdrawn from active teaching 
service or other active service, as applicable, before July 1, 
1992.  The total amount of the levy each year may not exceed 
$300,000.  
    Notwithstanding section 121.904, 50 percent of the proceeds 
of this levy shall be recognized in the fiscal year in which it 
is certified. 
    Sec. 14.  Laws 1991, chapter 265, article 8, section 14, is 
amended to read: 
    Sec. 14.  [NONOPERATING FUND TRANSFERS.] 
    On By June 30, 1992, and by June 30, 1993, a school 
district may permanently transfer money from the capital 
expenditure fund facilities or equipment accounts and from the 
debt redemption fund, to the extent the transferred money is not 
needed for principal and interest payments on bonds outstanding 
at the time of transfer, to the transportation fund, capital 
expenditure fund, or the debt redemption fund.  A transfer may 
not be made from the capital expenditure facilities or equipment 
accounts that results in a deficit account balance in either 
account or a deficit in the combined account balance for 
facilities and equipment as of June 30, 1992, or as of June 30, 
1993.  No levies and no state aids shall be reduced as a result 
of a transfer.  Each district transferring money according to 
this section from the capital expenditure facilities or 
equipment accounts shall report to the commissioner of education 
a report of on each transfer.  A district may not transfer money 
from the debt redemption fund to the capital expenditure fund or 
to the transportation fund without prior approval from the 
commissioner of education.  The commissioner shall approve a 
transfer from the debt redemption fund only if the district 
retired its bonded indebtedness during fiscal year 1992 or 1993 
or the district's 1991 payable 1992 or 1992 payable 1993 debt 
service levy was reduced to zero according to Minnesota 
Statutes, section 475.61, subdivision 3.  The commissioner of 
education shall report to the chairs of the education funding 
divisions of the house of representatives and the senate the 
aggregate transfers, by fund, made by school districts. 
     Sec. 15.  [COMPLEMENT.] 
    The complement of the department of education is increased 
by .5 for fiscal year 1993 for coordinating the advanced 
placement and international baccalaureate training programs. 
    Sec. 16.  [OPERATING DEBT LEVY FOR LAKE SUPERIOR SCHOOL 
DISTRICT.] 
    Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1992, 
independent school district No. 381, Lake Superior, shall 
establish a reserved account in the general fund.  The balance 
in the account shall equal the unreserved undesignated fund 
balance in the operating funds of the district as of June 30, 
1992. 
    Subd. 2.  [LEVY.] For taxes payable in each of the years 
1993 through 1997, the district may levy an amount up to 20 
percent of the balance in the account on July 1, 1992.  The 
balance in the account shall be adjusted each year by the amount 
of the proceeds of the levy.  The proceeds of the levy shall be 
used only for cash flow requirements and shall not be used to 
supplement district revenues or income for the purposes of 
increasing the district's expenditures or budgets. 
    Subd. 3.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
Statutes, section 645.023, subdivision 1, paragraph (a), this 
section is effective without local approval. 
    Sec. 17.  [OPERATING DEBT LEVY FOR COLERAINE SCHOOL 
DISTRICT.] 
    Subdivision 1.  [OPERATING DEBT ACCOUNT.] On July 1, 1992, 
independent school district No. 316, Coleraine, shall establish 
a reserved account in the general fund.  The balance in the 
account shall equal the unreserved undesignated fund balance in 
the operating funds of the district as of June 30, 1992. 
    Subd. 2.  [LEVY.] For taxes payable in each of the years 
1993 through 1997, the district may levy an amount up to 20 
percent of the balance in the account on July 1, 1992.  The 
balance in the account shall be adjusted each year by the amount 
of the proceeds of the levy.  The proceeds of the levy shall be 
used only for cash flow requirements and shall not be used to 
supplement district revenues or income for the purposes of 
increasing the district's expenditures or budgets. 
    Subd. 3.  [NO LOCAL APPROVAL.] Pursuant to Minnesota 
Statutes, section 645.023, subdivision 1, paragraph (a), this 
section is effective without local approval. 
    Sec. 18.  [FUND TRANSFER; NASHWAUK-KEEWATIN.] 
    Notwithstanding Minnesota Statutes, section 121.912, 
subdivision 1, or any other law to the contrary, on June 30, 
1992, independent school district No. 319, Nashwauk-Keewatin, 
may permanently transfer $40,000 from the bus purchase account 
to the capital expenditure fund without making a levy reduction. 
    Sec. 19.  [FUND TRANSFER; LESTER PRAIRIE.] 
    Notwithstanding any law to the contrary, on June 30, 1992, 
independent school district No. 424, Lester Prairie, may 
transfer $100,000 from its general fund to its capital 
expenditure fund to purchase computer and interactive television 
equipment that the district is leasing. 
     Sec. 20.  [FUND TRANSFER; ELLENDALE-GENEVA.] 
    Notwithstanding any other law to the contrary, on June 30, 
1992, independent school district No. 762, Ellendale-Geneva, may 
transfer $100,000 from its general fund to its capital 
expenditure fund to purchase computer equipment. 
    Sec. 21.  [FUND TRANSFER; RANDOLPH.] 
    Notwithstanding Minnesota Statutes, section 121.912, 
subdivision 1, or any other law to the contrary, on June 30, 
1992, independent school district No. 195, Randolph, may 
permanently transfer money from any operating fund other than 
the community service fund and any nonoperating fund other than 
the debt redemption fund to the general fund. 
    Sec. 22.  [NETT LAKE; CARRYFORWARD.] 
    The appropriations for grants to Nett Lake for unemployment 
compensation payments and insurance premiums contained in Laws 
1991, chapter 265, article 8, section 19, subdivision 14, do not 
cancel and the balances are available in fiscal year 1993. 
    Sec. 23.  [APPROPRIATION.] 
    (a) Money appropriated in Laws 1990, chapter 562, article 
12, section 2, for a summer health intern program does not 
cancel but is available to the commissioner for the fiscal year 
ending June 30, 1993, as specified in this section: 
    (1) $12,000 is available for the operating expenses of the 
Minnesota education in agriculture leadership council; and 
    (2) the remaining amount is available for purposes of 
section 3. 
    (b) Up to ten percent of the amount in paragraph (a), 
clause (2) may be used by the commissioner to secure services of 
vocational licensed instructors or other health personnel to 
coordinate and facilitate the internship program. 
     Sec. 24.  [APPROPRIATION; GRANT FOR SCIENCE AND MATH.] 
    $150,000 in fiscal year 1993 is appropriated from the 
general fund to the commissioner of education to supplement a 
grant from the National Science Foundation.  The appropriation 
is for a systemic initiative in science and mathematics 
education. 
    Sec. 25.  [LEARNING READINESS AID.] 
    The department of education shall report to the education 
committees of the legislature by January 1, 1993, a formula for 
learning readiness aid for school districts.  The formula shall 
take into consideration the number of participating eligible 
children in school districts, provide incentives to districts to 
conduct outreach activities, encourage all eligible children to 
participate, and provide adequate services to individual 
children based on each child's needs. 
    Sec. 26.  [ICE ARENA LEVY.] 
    (a) Each year, an independent school district operating and 
maintaining an ice arena, may levy for the net operational costs 
of the ice arena.  The levy may not exceed the net actual costs 
of operation of the arena for the previous year.  Net actual 
costs are defined as operating costs less any operating revenues.
    (b) Any school district operating and maintaining an ice 
arena must demonstrate to the satisfaction of the office of 
monitoring in the department of education that the district will 
offer equal sports opportunities for male and female students to 
use its ice arena, particularly in areas of access to prime 
practice time, team support, and providing junior varsity and 
younger level teams for girls' ice sports and ice sports 
offerings. 
    Sec. 27.  [DEPARTMENT STUDY.] 
    Subdivision 1.  [WORK WITH DISTRICTS.] The department of 
education shall work with school districts to determine the 
required educational services and costs of the services needed 
to establish the allowances in sections 5 to 8.  The department 
may establish a representative sample of districts to include in 
the research.  The department shall evaluate the inclusion of 
revenue provided under Minnesota Statutes, sections 124.311, 
124.32, 124.332, 124.573, and 124.574, in the allowance.  The 
department shall report to the education committees of the 
legislature on the progress of the study on February 1 of each 
year. 
    Subd. 2.  [INDEX.] The department shall evaluate and 
develop a cost differential index for each school district.  The 
index shall distinguish the prices and costs of resources needed 
to provide instructional services over which a local board may 
exercise discretion from those prices and costs of resources 
over which the district cannot exercise discretion. 
    Subd. 3.  [ANOTHER INDEX.] The department shall evaluate 
and develop a special need index for each school district.  The 
department may consider the number of children in the district 
that are eligible for aid to families with dependent children or 
for free and reduced lunches and any other indicators determined 
to significantly affect the ability of a child to achieve 
adopted outcomes. 
    Sec. 28.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [ADVANCED PLACEMENT AND INTERNATIONAL 
BACCALAUREATE PROGRAMS.] For the state advanced placement and 
international baccalaureate programs, including training 
programs, support programs, and examination fee subsidies: 
     $300,000     .....     1993 
    Sec. 29.  [APPROPRIATION.] 
    There is appropriated from the general fund to the 
department of education $20,000 for fiscal year 1993 to continue 
the programming of Laws 1990, chapter 562, article 7, section 
24, subdivision 3. * (This section was vetoed by the governor.) 
    Sec. 30.  [REPEALER.] 
    Minnesota Statutes 1990, section 124.274; and Laws 1990, 
chapter 562, article 12, are repealed. 
    Sec. 31.  [REPEALER.] 
    Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
1; and 124A.29, subdivision 1, are repealed effective June 30, 
1999; Laws 1991, chapter 265, article 7, section 35, is repealed.
    Sec. 32.  [EFFECTIVE DATE.] 
    Sections 1, 9, 14, 18, 19, 20, 21, 22, 23, and 30 are 
effective the day following final enactment.  Sections 4 to 8 
are effective for revenue for fiscal year 2000. 

                               ARTICLE 8 

                             MISCELLANEOUS 
    Section 1.  Minnesota Statutes 1990, section 121.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  The department shall be under the 
administrative control of the commissioner of education which 
office is established.  The commissioner shall be the secretary 
of the state board.  The commissioner shall be appointed by the 
state board with the approval of the governor under the 
provisions of section 15.06.  For purposes of section 15.06, the 
state board is the appointing authority. 
    The commissioner shall be a person who possesses 
educational attainment and breadth of experience in the 
administration of public education and of the finances 
pertaining thereto commensurate with the spirit and intent of 
this code.  Notwithstanding any other law to the contrary, the 
commissioner may appoint two deputy commissioners who shall 
serve in the unclassified service.  The commissioner shall also 
appoint other employees as may be necessary for the organization 
of the department.  The commissioner shall perform such duties 
as the law and the rules of the state board may provide and be 
held responsible for the efficient administration and discipline 
of the department.  The commissioner shall make recommendations 
to the board and be charged with the execution of powers and 
duties which the state board may prescribe, from time to time, 
to promote public education in the state, to safeguard the 
finances pertaining thereto, and to enable the state board to 
carry out its duties.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
121.585, subdivision 3, is amended to read: 
    Subd. 3.  [HOURS OF INSTRUCTION.] Pupils participating in a 
program must be able to receive the same total number of hours 
of instruction they would receive if they were not in the 
program.  If a pupil has not completed the graduation 
requirements of the district after completing the minimum number 
of secondary school hours of instruction, the district may allow 
the pupil to continue to enroll in courses needed for graduation.
    For the purposes of section 120.101, subdivision 5, the 
minimum number of hours for a year determined for the 
appropriate grade level of instruction shall constitute 170 days 
through the 1994-1995 school year and the number of days of 
instruction required under section 120.101, subdivision 5b 
thereafter.  Hours of instruction that occur after the close of 
the instructional year in June shall be attributed to the 
following fiscal year.  
    Sec. 3.  Minnesota Statutes 1990, section 121.935, is 
amended by adding a subdivision to read: 
    Subd. 9.  [FINANCIAL SERVICES.] Regional management 
information centers may provide financial management information 
services to cities, counties, towns, or other governmental units 
at mutually negotiated prices.  
    Sec. 4.  Minnesota Statutes 1990, section 123.58, is 
amended by adding a subdivision to read: 
    Subd. 12.  [SERVICES.] Educational cooperative service 
units may provide administrative, purchasing, and data 
processing services to cities, counties, towns, or other 
governmental units at mutually negotiated prices. 
    Sec. 5.  Minnesota Statutes 1990, section 123.744, as 
amended by Laws 1991, chapter 265, article 9, section 41, as 
reenacted, is amended to read: 
    [123.744] [SCHOOL BOARDS; STUDENT MEMBERS.] 
    The board of directors of any school district shall appoint 
a student to serve as an advisory member to the school board or 
shall establish a youth advisory council to make formal and 
informal recommendations to the school board.  If a student 
advisory member is appointed to the board, the student shall 
serve as an advisory member to the board only while attending 
school in the district, and shall not receive any compensation 
or be reimbursed.  The board may reimburse the student advisory 
member for any expenses incurred the student incurs while 
serving in this capacity on the board. 
    A student advisory member shall be permitted to attend 
school board meetings, to be furnished with agenda materials, to 
introduce items for inclusion in the agenda, and to participate 
in discussion but shall not be entitled to vote. 
    If a youth advisory council is established, the board shall 
meet with council members at least three times per year to 
discuss education matters and board actions affecting the 
district student population. 
    Neither the student member nor youth advisory council 
members may participate in any closed discussion concerning the 
negotiation or implementation of a collective bargaining 
agreement and must not be present at a closed meeting permitted 
under section 471.705, subdivision 1a or 1d. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
124.646, subdivision 4, is amended to read: 
    Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
described in this subdivision must be recorded as provided in 
this subdivision. 
    (b) In each school district, the expenses for a school food 
service program for pupils must be attributed to a school food 
service fund.  Under a food service program, the school food 
service may prepare or serve milk, meals, or snacks in 
connection with school or community service activities. 
    (c) Revenues and expenditures for food service activities 
must be recorded in the food service fund.  The costs of 
processing applications, accounting for meals, preparing and 
serving food, providing kitchen custodial services, and other 
expenses involving the preparing of meals or the kitchen section 
of the lunchroom may be charged to the food service fund or to 
the general fund of the district.  The costs of lunchroom 
supervision, lunchroom custodial services, lunchroom utilities, 
and other administrative costs of the food service program, 
including the costs attributable to the superintendent and the 
financial manager must be charged to the general fund. 
    That portion of superintendent and fiscal manager costs 
that can be documented as attributable to the food service 
program may be charged to the food service fund provided that 
the school district does not employ or contract with a food 
service director or other individual who manages the food 
service program, or food service management company.  If the 
cost of the superintendent or fiscal manager is charged to the 
food service fund, the charge must be at a wage rate not to 
exceed the statewide average for food service directors as 
determined by the department of education. 
    (d) Capital expenditures for the purchase of food service 
equipment must be made from the capital fund and not the food 
service fund, unless two conditions apply: 
    (1) the unreserved balance in the food service fund at the 
end of the last fiscal year is greater than the cost of the 
equipment to be purchased; and 
    (2) the department of education has approved the purchase 
of the equipment. 
    (e) If the two conditions set out in paragraph (d) apply, 
the equipment may be purchased from the food service fund. 
    (f) If a deficit in the food service fund exists at the end 
of a fiscal year, and the deficit is not eliminated by revenues 
from food service operations in the next fiscal year, then the 
deficit must be eliminated by a permanent fund transfer from the 
general fund at the end of that second fiscal year.  However, if 
a district contracts with a food service management company 
during the period in which the deficit has accrued, the deficit 
must be eliminated by a payment from the food service management 
company. 
    (g) Notwithstanding paragraph (f), a district may incur a 
deficit in the food service fund for up to three years without 
making the permanent transfer if the district submits to the 
commissioner by January 1 of the second fiscal year a plan for 
eliminating that deficit at the end of the third fiscal year. 
    (h) If a surplus in the food service fund exists at the end 
of a fiscal year for three successive years, a district may 
recode for that fiscal year the costs of lunchroom supervision, 
lunchroom custodial services, lunchroom utilities, and other 
administrative costs of the food service program charged to the 
general fund according to paragraph (c) and charge those costs 
to the food service fund in a total amount not to exceed the 
amount of surplus in the food service fund. 
    Sec. 7.  Minnesota Statutes 1990, section 124C.61, is 
amended to read: 
    124C.61 [PARENTAL INVOLVEMENT PROGRAMS.] 
    Subdivision 1.  [PROGRAM GOALS.] The department of 
education, in consultation with the state curriculum advisory 
committee, must develop guidelines and model plans for parental 
involvement programs that will: 
    (1) engage the interests and talents of parents or 
guardians in recognizing and meeting the emotional, 
intellectual, and physical needs of their school-age children; 
    (2) promote healthy self-concepts among parents or 
guardians and other family members; 
    (3) offer parents or guardians a chance to share and learn 
about educational skills, techniques, and ideas; and 
    (4) provide creative learning experiences for parents or 
guardians and their school-age children, including involvement 
from parents or guardians of color; and 
     (5) encourage parents to actively participate in their 
district's curriculum advisory committee under section 126.666 
in order to assist the school board in improving children's 
education programs. 
    Subd. 2.  [PLAN CONTENTS.] Model plans for a parental 
involvement program must include at least the following: 
    (1) program goals; 
    (2) means for achieving program goals; 
    (3) methods for informing parents or guardians, in a timely 
way, about the program; 
    (4) strategies for ensuring the full participation of 
parents or guardians, including those parents or guardians who 
lack literacy skills or whose native language is not English, 
including involvement from parents or guardians of color; 
    (5) procedures for coordinating the program with 
kindergarten through grade 12 curriculum, with parental 
involvement programs currently available in the community, with 
the PER process under sections 126.661 to 126.67, and with other 
education facilities located in the community; 
    (6) strategies for training teachers and other school staff 
to work effectively with parents and guardians; 
    (7) procedures for parents or guardians and educators to 
evaluate and report progress toward program goals; and 
    (8) a mechanism for convening a local community advisory 
committee composed primarily of parents or guardians to advise a 
district on implementing a parental involvement program. 
    Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
model plans must include: 
    (1) educational opportunities for families that enhance 
children's learning development; 
    (2) educational programs for parents or guardians on 
families' educational responsibilities and resources; 
    (3) the hiring, training, and use of parental involvement 
liaison workers to coordinate family involvement activities and 
to foster communication among families, educators, and students; 
    (4) curriculum materials and assistance in implementing 
home and community-based learning activities that reinforce and 
extend classroom instruction and student motivation; 
    (5) technical assistance, including training to design and 
carry out family involvement programs; 
    (6) parent resource centers; 
    (7) parent training programs and reasonable and necessary 
expenditures associated with parents' attendance at training 
sessions; 
    (8) reports to parents on children's progress; 
    (9) use of parents as classroom volunteers, tutors, and 
aides; or 
    (10) soliciting parents' suggestions in planning, 
developing, and implementing school programs; 
    (11) educational programs and opportunities for parents or 
guardians that are multicultural, gender fair, and disability 
sensitive; and 
    (12) involvement in a district's curriculum advisory 
committee or a school building team under section 126.666. 
    Sec. 8.  Minnesota Statutes 1990, section 125.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [QUALIFICATIONS AUTHORITY TO LICENSE.] (a) 
The authority to board of teaching shall license teachers, as 
defined in section 125.03, subdivision 1, is vested in the board 
of teaching except that the authority to for supervisory 
personnel, as defined in section 125.03, subdivision 4. 
    (b) The state board of education shall license supervisory 
personnel as defined in section 125.03, subdivision 4, is vested 
in the state board of education.  The authority to 
    (c) The state board of technical colleges, according to 
section 136C.04, shall license post-secondary vocational and 
adult vocational teachers, support personnel, and supervisory 
personnel in technical colleges is vested in the state board of 
technical colleges according to section 136C.04, subdivision 9.  
Licenses must be issued to persons the board of teaching or the 
state board of education finds to be competent for their 
respective positions.  For teachers, as defined in section 
125.03, subdivision 5, competency includes successful completion 
of an examination of skills in reading, writing, and mathematics 
for persons applying for initial licenses.  Qualifications of 
teachers and other professional employees except supervisory 
personnel must be determined by the board of teaching under the 
rules it adopts. 
     (d) Licenses under the jurisdiction of the board of 
teaching and the state board of education must be issued through 
the licensing section of the department of education.  Licenses 
under the jurisdiction of the state board of education must be 
issued through the licensing section of the department of 
education.  
    Sec. 9.  Minnesota Statutes 1990, section 125.05, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
(a) The board of teaching shall issue licenses under its 
jurisdiction to persons the board finds to be qualified and 
competent for their respective positions. 
    (b) The board shall require a person to successfully 
complete an examination of skills in reading, writing, and 
mathematics before being admitted to a post-secondary teacher 
preparation program approved by the board if that person seeks 
to qualify for an initial teaching license to provide direct 
instruction to pupils in kindergarten, elementary, secondary, or 
special education programs. 
    (c) Before admission to a pilot internship program, the 
board shall require a person to successfully complete an 
examination of general pedagogical knowledge.  Before granting a 
first continuing license to participants in the pilot projects, 
the board shall require a person to successfully complete a 
supervised and assessed internship in a professional development 
school and an examination of licensure-specific teaching 
skills.  The board shall determine effective dates for the 
examination of general pedagogical knowledge, the internship, 
and examinations of licensure-specific skills. 
    Sec. 10.  Minnesota Statutes 1990, section 125.05, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [PILOT PROJECTS.] (a) The board of teaching 
shall develop pilot projects on restructuring teacher 
preparation and licensure in Minnesota.  The pilot projects 
shall evaluate models that require, as a condition for 
licensure, a year long internship following completion of an 
approved teacher preparation program.  The pilot projects shall 
require supervision and assessment of interns according to 
guidelines adopted by the board.  The board shall, through an 
independent contractor selected in consultation with the 
advisory task force established in section 125.185, subdivision 
4a, evaluate the effectiveness of the restructured licensure 
model in comparison to other models of preparing and licensing 
teachers, including models that provide internships within 
existing preparation programs. 
    (b) The board shall submit an appropriation request to the 
1993 legislature to begin the pilot projects.  The board shall, 
during the 1993-1995 biennium, identify sites for the pilot 
projects, create professional development schools, and prepare 
staff at the pilot sites.  The board shall also assist colleges 
and universities participating in the pilot projects to redesign 
teacher education programs. 
    (c) The pilot projects shall be operational and begin 
admitting candidates for licensure in 1995. 
    (d) The board shall present an evaluation of the pilot 
projects and recommendations regarding statewide implementation 
of the restructured licensure model to the education committees 
of the legislature by January 15, 1998.  The evaluation must be 
done by an independent contractor and must include the comments 
and recommendations of the advisory task force. 
    (e) It is the intent of the legislature that if the 
restructured licensure model proves effective, the model will be 
implemented statewide by the year 2000.  The board shall not 
implement a statewide restructured licensure program without 
specific legislative authorization. 
    (f) The board shall, after consulting with the advisory 
task force, establish the qualifications for interns in the 
pilot projects and the requirements for an intern license. 
    Sec. 11.  Minnesota Statutes 1990, section 125.05, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS.] The 
state board of education shall issue licenses under its 
jurisdiction to persons the state board finds to be qualified 
and competent for their respective positions under the rules it 
adopts. 
    Sec. 12.  Minnesota Statutes 1990, section 125.05, 
subdivision 7, is amended to read: 
    Subd. 7.  [LIMIT ON FIELDS OF LICENSURE.] Unless the action 
of the board of teaching is approved by specific law, the board 
may not, after July 1, 1989: 
     (1) develop additional fields of licensure; 
     (2) divide existing fields of licensure; or 
     (3) extend any licensure requirements to any duties that 
could be performed on March 15, 1989, without a license.  
     The board may establish fields for provisional licensure, 
but shall submit each field to the legislature for approval.  If 
approval by specific law is not obtained within one year after 
the provisional license is established, the board shall 
discontinue the field of provisional licensure. 
    The board may study ways to reconfigure its licensure 
system to develop and propose flexibility within the existing 
licensure structure.  The board may not proceed under chapter 14 
until it reports the results of its study to the education 
committees of the legislature and obtains authorization by 
specific law, as required by this subdivision. 
    Sec. 13.  Minnesota Statutes 1990, section 125.12, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [APPLICABILITY.] Subdivision 4a does not apply 
to a school district that has formally adopted a review process 
for continuing contract teachers that has been mutually agreed 
upon by the exclusive representative of the teachers in the 
district and the school board. 
    Sec. 14.  Minnesota Statutes 1990, section 125.17, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [APPLICABILITY.] Subdivision 3a does not apply 
to a school district that has formally adopted a review process 
for nonprobationary teachers that has been mutually agreed upon 
by the exclusive representative of the teachers in the district 
and the school board. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
125.185, subdivision 4, is amended to read: 
    Subd. 4.  [LICENSE AND RULES.] (a) The board shall adopt 
rules to license public school teachers and interns subject to 
chapter 14. 
    (b) The board shall adopt rules for examination of 
teachers, as defined in section 125.03, subdivision 5.  The 
rules may allow for requiring successful completion of the an 
examination of skills in reading, writing, and mathematics 
before entering or during being admitted to a teacher 
education preparation program. 
    (c) The board shall adopt rules to approve teacher 
education preparation programs. 
    (d) The board of teaching shall provide the leadership and 
shall adopt rules by October 1, 1988, for the redesign of 
teacher education programs to implement a research based, 
results-oriented curriculum that focuses on the skills teachers 
need in order to be effective.  The board shall implement new 
systems of teaching education teacher preparation program 
evaluation to assure program effectiveness based on proficiency 
of graduates in demonstrating attainment of program outcomes. 
    (e) The board shall adopt rules requiring successful 
completion of an examination of general pedagogical knowledge 
and examinations of licensure-specific teaching skills.  The 
rules shall be effective on the dates determined by the board, 
but not later than July 1, 1999. 
    (f) Until July 1, 1998, the board may select schools to be 
pilot professional development schools according to initial 
criteria adopted by the board.  Initial criteria are not subject 
to chapter 14.  Upon specific legislative authorization to 
implement a statewide restructured licensure program, the board 
shall adopt rules to approve or disapprove professional 
development schools. 
    These rules (g) The board shall require adopt rules 
requiring teacher educators to work directly with elementary or 
secondary school teachers in elementary or secondary schools to 
obtain a periodic exposure to the elementary or secondary 
teaching environment. 
     (h) The board shall also grant licenses to interns and to 
candidates for initial licenses. 
     (i) The board shall design and implement an assessment 
system which requires candidates a candidate for an initial 
licensure license and first continuing licensure license to 
demonstrate the abilities necessary to perform selected, 
representative teaching tasks at appropriate levels. 
    (j) The board shall receive recommendations from local 
committees as established by the board for the renewal of 
teaching licenses. 
    (k) The board shall grant life licenses to those who 
qualify according to requirements established by the board, and 
suspend or revoke licenses pursuant to sections 125.09 and 
214.10.  Notwithstanding any law or rule to the contrary, The 
board shall not establish any expiration date for application 
for life licenses. 
    (l) With regard to post-secondary vocational education 
teachers the board of teaching shall adopt and maintain as its 
rules the rules of the state board of education and the state 
board of technical colleges. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
125.185, subdivision 4a, is amended to read: 
    Subd. 4a.  Notwithstanding section 125.05, or any other law 
to the contrary, the authority of the board of teaching and the 
state board of education to approve teacher education programs 
and to issue teacher licenses expires on June 30, 1996.  Any 
license issued by the board of teaching or the state board of 
education after July 1, 1991, must expire by June 30, 1996. 
    The board of teaching, in cooperation with the state board 
of education and the higher education coordinating board, shall 
develop policies and corresponding goals for making teacher 
education preparation curriculum more consistent with the 
purpose of state public education.  The revised 
teacher education preparation curriculum must be consistent with 
the board of teaching rules required under subdivision 4 for 
redesigning teacher education preparation programs to implement 
a research-based, results-oriented curriculum.  The revised 
teacher education preparation curriculum may shall include, 
upon specific legislative authorization to implement a statewide 
restructured licensure program, a requirement that 
teacher education preparation programs contain a one-year 
mentorship program supervised and assessed internship in a 
professional development school approved by the board.  
The mentorship internship program must provide students the 
interns with elementary or secondary teaching experience and 
appropriate professional support and evaluation from licensed 
classroom teachers, including mentor teachers.  By February 1, 
1992, the board of teaching shall provide the education 
committees of the legislature with detailed written guidelines, 
strategies, and programs to implement the revised teacher 
education curriculum.  By February 1, 1993,.  The board of 
teaching and the state board of education shall adopt rules 
under chapter 14 that are consistent with the guidelines, 
strategies, and programs provided to the legislature in 1992, 
including amending board rules governing the issuing, expiring, 
and renewing of teacher licenses.  The board shall not implement 
a statewide restructured licensure program without specific 
legislative authorization.  
    The board of teaching shall appoint an advisory task force 
to advise the board on implementing the restructured teacher 
preparation and licensure system.  The task force shall consist 
of 25 members.  Each of the following organizations shall select 
a member to serve on the task force:  inter-faculty 
organization, University of Minnesota, Minnesota private college 
council, Minnesota association of colleges for teacher 
education, Minnesota education association, Minnesota federation 
of teachers, Minnesota association of teacher educators, 
Minnesota association of school administrators, Minnesota 
association of secondary school principals, Minnesota 
association of elementary school principals, Minnesota 
vocational association, Minnesota congress of parents, teachers, 
and students, Minnesota school boards association, education 
cooperative service units, the state university system, the 
Minnesota state university student association, the Minnesota 
association of private college students, the University of 
Minnesota student senate, and the Minnesota business 
partnership.  In addition, the board shall appoint one member of 
the board of teaching to the task force.  The task force shall 
include three ex officio members representing the commissioner 
of education, the state board of education, and the higher 
education coordinating board.  Expenses incurred by task force 
members shall be reimbursed by the organizations they represent. 
    During the pilot period of the plan, the advisory task 
force shall meet at least six times each year and advise the 
board on restructuring the teacher preparation and licensure 
system. 
    The board of teaching shall, after consulting with the 
advisory task force, submit a progress report on implementing 
the restructured teacher preparation and licensure system to the 
education committees of the legislature by January 1 of each 
year.  Before fully implementing the restructured system, the 
board of teaching shall include a report on the pilot period. 
    The task force shall continuously monitor the progress of 
the pilot projects developed under section 125.05, subdivision 
1b, and assist the board in addressing policy questions 
implicated in restructuring the teacher preparation and 
licensure system, including: 
    (1) what impact the restructured system has on low income 
or place-bound persons; 
    (2) how the restructured system ensures the ethnic and 
cultural diversity of the teaching force; 
    (3) what the cost implications of the restructured system 
are for students, public and private teacher preparation 
institutions, and the state; 
     (4) what the status of teacher interns under the 
restructured system is with respect to licensure, tenure, and 
retirement and other employment benefits; 
     (5) what the relationship is between teacher preparation 
institutions and internship programs under the restructured 
system; and 
    (6) what the comparative costs and benefits are of a 
restructured program and existing teacher preparation programs 
with an internship component. 
    The higher education coordinating board shall assist the 
state's teacher preparation institutions in developing teacher 
education preparation curriculum for their students that is 
consistent with the guidelines, programs, and strategies 
approved by the legislature.  The institutions must use the 
revised teacher education curriculum to instruct their students 
beginning in the 1996-1997 school year. 
    The board of teaching shall disapprove a teacher 
preparation institution that has not implemented the revised 
teacher preparation curriculum by the 1996-1997 academic year. 
    Sec. 17.  Minnesota Statutes 1990, section 127.46, is 
amended to read: 
    127.46 [SEXUAL HARASSMENT AND VIOLENCE POLICY.] 
    Each school board shall adopt a written sexual harassment 
and sexual violence policy that conforms with sections 363.01 to 
363.15.  The policy shall apply to pupils, teachers, 
administrators, and other school personnel, include reporting 
procedures, and set forth disciplinary actions that will be 
taken for violation of the policy.  Disciplinary actions must 
conform with collective bargaining agreements and sections 
127.27 to 127.39.  The policy must be conspicuously posted in 
throughout each school building and included in each school's 
student handbook on school policies.  Each school must develop a 
process for discussing the school's sexual harassment and 
violence policy with students and school employees. 
    Sec. 18.  Minnesota Statutes 1990, section 128C.01, 
subdivision 4, is amended to read: 
    Subd. 4.  [BOARD.] (a) The league must have a 21-member 
20-member governing board. 
    (1) The commissioner of education, or the commissioner's 
representative, is a nonvoting member.  
    (2) The governor must appoint four members according to 
section 15.0597.  Each of the four appointees must be a parent.  
At least one of them must be an American Indian, an Asian, a 
Black, or a Hispanic. 
    (3) (2) The Minnesota association of secondary school 
principals must appoint two of its members. 
    (4) (3) The remaining 14 members must be selected according 
to league bylaws.  
    (b) The terms, compensation, removal of members, and the 
filling of membership vacancies are governed by section 15.0575. 
    Sec. 19.  Minnesota Statutes 1990, section 128C.02, is 
amended by adding a subdivision to read: 
    Subd. 6.  [ANNUAL REPORT.] The board annually shall prepare 
a written report containing the information about the league 
that the commissioner is required to obtain and review under 
section 128C.20.  The board shall present copies of the report 
in a timely manner to the education committees of the 
legislature. 
    Sec. 20.  Minnesota Statutes 1990, section 136C.69, 
subdivision 3, is amended to read: 
    Subd. 3.  [LEVY.] (a) A member district that has 
transferred a technical college facility to the joint board may 
levy upon all taxable property in the member district, the 
following:  
    (1) in the first levy certified after the transfer, 75 
percent of the amount of the district's most recent service fee 
allocation; 
    (2) in the second levy certified after the transfer, 50 
percent of the amount of the district's service fee allocation 
under clause (1); and 
    (3) in the third levy certified after the transfer, 25 
percent of the amount of the district's service fee allocation 
under clause (1).  
    (b) The proceeds of the levy may be placed in the general 
fund or any other fund of the district.  Any unexpended portion 
of the proceeds so received must not be considered in the net 
undesignated fund balance of the member district for the three 
fiscal years to which the levy is attributable. 
    (c) Notwithstanding section 121.904, 50 percent of the 
proceeds of this levy shall be recognized in the fiscal year in 
which it is certified. 
    Sec. 21.  Minnesota Statutes 1991 Supplement, section 
275.065, subdivision 6, is amended to read: 
    Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
Between November 15 and December 20, the governing bodies of the 
city and county shall each hold a public hearing to adopt its 
final budget and property tax levy for taxes payable in the 
following year, and the governing body of the school district 
shall hold a public hearing to review its current budget and 
adopt its property tax levy for taxes payable in the following 
year.  
    At the hearing, the taxing authority, other than a school 
district, may amend the proposed budget and property tax levy 
and must adopt a final budget and property tax levy, and the 
school district may amend the proposed property tax levy and 
must adopt a final property tax levy.  
    The property tax levy certified under section 275.07 by a 
city, county, or school district must not exceed the proposed 
levy determined under subdivision 1, except by an amount up to 
the sum of the following amounts: 
    (1) the amount of a school district levy whose voters 
approved a referendum to increase taxes under section 124.82, 
subdivision 3, 124A.03, subdivision 2, or 124B.03, subdivision 
2, or 275.125, subdivision 14a, after the proposed levy was 
certified; 
    (2) the amount of a city or county levy approved by the 
voters under section 275.58 after the proposed levy was 
certified; 
    (3) the amount of a levy to pay principal and interest on 
bonds issued or approved by the voters under section 475.58 
after the proposed levy was certified; 
     (4) the amount of a levy to pay costs due to a natural 
disaster occurring after the proposed levy was certified, if 
that amount is approved by the commissioner of revenue under 
subdivision 6a; 
     (5) the amount of a levy to pay tort judgments against a 
taxing authority that become final after the proposed levy was 
certified, if the amount is approved by the commissioner of 
revenue under subdivision 6a; 
     (6) the amount of an increase in levy limits certified to 
the taxing authority by the commissioner of revenue or the 
commissioner of education after the proposed levy was certified; 
and 
     (7) if not included in the certified levy, any additional 
amount levied pursuant to section 275.51, subdivision 7, 
paragraph (b). 
     At the hearing the percentage increase in property taxes 
proposed by the taxing authority, if any, and the specific 
purposes for which property tax revenues are being increased 
must be discussed.  During the discussion, the governing body 
shall hear comments regarding a proposed increase and explain 
the reasons for the proposed increase.  The public shall be 
allowed to speak and to ask questions prior to adoption of any 
measures by the governing body.  The governing body, other than 
the governing body of a school district, shall adopt its final 
property tax levy prior to adopting its final budget. 
      If the hearing is not completed on its scheduled date, the 
taxing authority must announce, prior to adjournment of the 
hearing, the date, time, and place for the continuation of the 
hearing.  The continued hearing must be held at least five 
business days but no more than 14 business days after the 
original hearing. 
     The hearing must be held after 5:00 p.m. if scheduled on a 
day other than Saturday.  No hearing may be held on a Sunday.  
The county auditor shall provide for the coordination of hearing 
dates for all taxing authorities within the county. 
     By August 1, the county auditor shall notify the clerk of 
each school district within the county of the dates that the 
county board has designated for its hearing and any continuation 
under subdivision 3.  By August 15, each school board shall 
certify to the county auditors of the counties in which the 
school district is located the dates on which it elects to hold 
its hearings and any continuations under subdivision 3.  If a 
school board does not certify the dates by August 15, the 
auditor will assign the hearing date.  The dates elected or 
assigned must not conflict with the county hearing dates.  By 
August 20, the county auditor shall notify the clerks of the 
cities within the county of the dates on which the county and 
school districts have elected to hold their hearings.  At the 
time a city certifies its proposed levy under subdivision 1 it 
shall certify the dates on which it elects to hold its hearings 
and any continuations under subdivision 3.  The city must not 
select dates that conflict with those elected by or assigned to 
the counties and school districts in which the city is located.  
    The hearing dates so elected or assigned must be designated 
on the notices required under subdivision 3.  
    This subdivision does not apply to towns and special taxing 
districts. 
    Sec. 22.  Minnesota Statutes 1990, section 275.125, 
subdivision 14a, is amended to read: 
    Subd. 14a.  [LEVY FOR LOCAL SHARE OF TECHNICAL COLLEGE 
CONSTRUCTION.] (a) The definitions in section 136C.02 apply to 
this subdivision.  "Construction" includes acquisition and 
betterment of land, buildings, and capital improvements for 
technical colleges. 
    (b) A district maintaining a technical college may levy for 
its share of the cost of construction of technical college 
facilities as provided in this subdivision.  
    (c) The construction must be authorized by a specific 
legislative act pursuant to section 136C.07, subdivision 5, 
after January 1, 1980.  The act must require the state to pay 
part of the cost of technical college construction and the 
district to pay part of the cost.  
    (d) The district may levy an amount equal to the local 
share of the cost of technical college construction minus the 
amount of any unreserved net balance in the district's technical 
college building construction fund.  A district may levy the 
total amount authorized by this subdivision in one year, or a 
proportionate amount of the total authorized amount each year 
for up to three successive years.  
    (e) By the August 1 Before a district certifies the first 
levy pursuant to this subdivision, at least three weeks 
published notice of the proposed levy shall be given in the 
legal newspaper with the largest circulation in the district.  
The notice shall state the purpose and duration of the proposed 
levy and the amount of the proposed levy in dollars and in terms 
of the local tax rate.  Upon petition within 20 days after the 
notice of the greater of (a) 50 voters, or (b) 15 percent of the 
number of registered voters who voted in of the district at 
the most recent regular school board election on the day the 
petition is filed with the school board, the board shall call a 
referendum on the proposed levy.  The referendum shall be held 
on a date set by the school board, but no later than the 
September 20 before the levy is certified ten days prior to the 
adoption of the final property tax levy under section 275.065.  
The referendum shall be considered a referendum to increase 
taxes under section 275.065, subdivision 6.  The question on the 
ballot shall state the amount of the proposed levy in terms of 
the local tax rate and in dollars in the first year of the 
proposed levy. 
    (f) A district may not levy for the cost of a construction 
project pursuant to this subdivision if it issues any bonds to 
finance any costs of the project. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
298.28, subdivision 4, is amended to read: 
    Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
ton plus the increase provided in paragraph (d) must be 
allocated to qualifying school districts to be distributed, 
based upon the certification of the commissioner of revenue, 
under paragraphs (b) and (c). 
     (b) 5.5 cents per taxable ton must be distributed to the 
school districts in which the lands from which taconite was 
mined or quarried were located or within which the concentrate 
was produced.  The distribution must be based on the 
apportionment formula prescribed in subdivision 2. 
     (c)(i) 22 cents per taxable ton, less any amount 
distributed under paragraph (e), shall be distributed to a group 
of school districts comprised of those school districts in which 
the taconite was mined or quarried or the concentrate produced 
or in which there is a qualifying municipality as defined by 
section 273.134 in direct proportion to school district indexes 
as follows:  for each school district, its pupil units 
determined under section 124.17 for the prior school year shall 
be multiplied by the ratio of the average adjusted net tax 
capacity per pupil unit for school districts receiving aid under 
this clause as calculated pursuant to chapter 124A for the 
school year ending prior to distribution to the adjusted net tax 
capacity per pupil unit of the district.  Each district shall 
receive that portion of the distribution which its index bears 
to the sum of the indices for all school districts that receive 
the distributions.  
       (ii) Notwithstanding clause (i), each school district that 
receives a distribution under sections 298.018; 298.23 to 
298.28, exclusive of any amount received under this clause; 
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
imposing a tax on severed mineral values that is less than the 
amount of its levy reduction under section 275.125, subdivision 
9, for the second year prior to the year of the distribution 
shall receive a distribution equal to the difference; the amount 
necessary to make this payment shall be derived from 
proportionate reductions in the initial distribution to other 
school districts under clause (i).  
       (d) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
paragraph (c) in the same proportion as the increase in the 
steel mill products index over the base year of 1977 as provided 
in section 298.24, subdivision 1, clause (a), shall be 
distributed to any school district described in paragraph (c) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988, the increase over the amount 
established for 1987 shall be determined as if there had been an 
increase in the tax rate under section 298.24, subdivision 1, 
paragraph (b), according to the increase in the implicit price 
deflator.  On July 15, 1989, 1990, and 1991, the increase over 
the amount established for the prior year shall be determined 
according to the increase in the implicit price deflator as 
provided in section 298.24, subdivision 1, paragraph (a).  In 
1992 and 1993, the amount distributed per ton shall be the same 
as that determined for distribution in 1991.  In 1994, the 
amount distributed per ton shall be equal to the amount per ton 
distributed in 1991 increased in the same proportion as the 
increase between the fourth quarter of 1988 and the fourth 
quarter of 1992 in the implicit price deflator as defined in 
section 298.24, subdivision 1.  On July 15, 1995, and subsequent 
years, the increase over the amount established for the prior 
year shall be determined according to the increase in the 
implicit price deflator as provided in section 298.24, 
subdivision 1.  Each district shall receive the product of: 
     (i) $175 times the pupil units identified in section 
124.17, subdivision 1, enrolled in the second previous year or 
the 1983-1984 school year, whichever is greater, less the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year; times 
     (ii) the lesser of: 
     (A) one, or 
     (B) the ratio of the sum of the amount certified pursuant 
to section 124A.03, subdivision 1g, in the previous year, plus 
the amount certified pursuant to section 124A.03, subdivision 
1i, in the previous year, plus the referendum aid according to 
section 124A.03, subdivision 1h, for the current year, to the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year. 
    If the total amount provided by paragraph (d) is 
insufficient to make the payments herein required then the 
entitlement of $175 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to 
paragraph (d) shall not be applied to reduce general education 
aid which the district receives pursuant to section 124A.23 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of iron range resources and rehabilitation who 
shall deposit the same in the taconite environmental protection 
fund and the northeast Minnesota economic protection trust fund 
as provided in subdivision 11. 
    Each district receiving money according to this paragraph 
shall reserve $25 times the number of pupil units in the 
district.  It may use the money only for early childhood 
programs or for outcome-based learning programs that enhance the 
academic quality of the district's curriculum.  The 
outcome-based learning programs must be approved by the 
commissioner of education.  
    (e) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
364.09, is amended to read: 
    364.09 [EXCEPTIONS.] 
    (a) This chapter shall not apply to the practice of law 
enforcement, to fire protection agencies, to eligibility for a 
private detective or protective agent license, to eligibility 
for a family day care license, a family foster care license, a 
home care provider license, to eligibility for a license issued 
or renewed by the board of teaching or state board of education, 
or to eligibility for school bus driver endorsements,.  This 
chapter also shall not apply to eligibility for a license issued 
or renewed by the board of teaching or state board of education 
or to eligibility for juvenile corrections employment where the 
offense involved child physical or sexual abuse or criminal 
sexual conduct.  
    (b) This chapter does not apply to a school district.  
    (c) Nothing in this section shall be construed to preclude 
the Minnesota police and peace officers training board or the 
state fire marshal from recommending policies set forth in this 
chapter to the attorney general for adoption in the attorney 
general's discretion to apply to law enforcement or fire 
protection agencies. 
    Sec. 25.  Laws 1990, chapter 366, section 1, subdivision 2, 
is amended to read: 
    Subd. 2.  The superintendent of schools of special school 
district No. 1, Minneapolis, may appoint a person to each of the 
following positions in clauses (1) to (7) and more than one 
person to the positions in clauses (8) and (9) to perform the 
duties and services the superintendent may direct: 
    (1) administrator/licensed personnel; 
    (2) administrator/nonlicensed personnel; 
    (3) administrative assistant finance and operations; 
    (4) manager of transportation operations; 
    (5) director of finance; 
    (6) administrative assistant/research and development; and 
    (7) director of affirmative action; 
    (8) parent liaison; and 
    (9) public school nurse. 
    Sec. 26.  Laws 1991, chapter 265, article 8, section 19, 
subdivision 6, is amended to read: 
    Subd. 6.  [SCHOOL LUNCH AND FOOD STORAGE AID.] For school 
lunch aid according to Minnesota Statutes, section 124.646, and 
Code of Federal Regulations, title 7, section 210.17, and for 
food storage and transportation costs for United States 
Department of Agriculture donated commodities; and for a 
temporary transfer to the commodity processing revolving fund to 
provide cash flow to permit schools and other recipients of 
donated commodities to take advantage of volume processing rates 
and for school milk aid according to Minnesota Statutes, section 
124.648: 
     $5,925,000     .....     1992
     $5,925,000     .....     1993
    Any unexpended balance remaining from the appropriations in 
this subdivision shall be prorated among participating schools 
based on the number of free, reduced, and fully paid federally 
reimbursable student lunches served during that school year. 
    If the appropriation amount attributable to either year is 
insufficient, the rate of payment for each free, reduced, and 
fully paid federally reimbursable student lunch shall be reduced 
and the aid for that year shall be prorated among participating 
schools so as not to exceed the total authorized appropriation 
for that year. 
    Any temporary transfer processed in accordance with this 
subdivision to the commodity processing fund will be returned by 
June 30 in each year so that school lunch aid and food storage 
costs can be fully paid as scheduled. 
    Not more than $800,000 of the amount appropriated each year 
may be used for school milk aid. 
    Sec. 27.  [SEVERANCE PAY.] 
    Employees of the Hibbing technical college who are over the 
age of 50 and have more than 20 years of combined experience 
with independent school district No. 701 or Hibbing technical 
college as of July 1, 1992, shall have no loss in severance pay 
benefits due to the formation of a technical college district 
according to Minnesota Statutes, section 136C.71. 
    Sec. 28.  [STUDY.] 
    (a) The Minnesota council on disabilities may conduct a 
study of the health needs of Minnesota students from birth to 
age 21 who are medically fragile or technology dependent.  The 
council shall have the power to make grants, from money 
appropriated to it, to organizations or individuals in order to 
obtain assistance in conducting the study.  The department of 
education may cooperate with the council in conducting the study.
    (b) The study must result in: 
    (1) a working definition of the conditions labeled 
"medically fragile" and "technology dependent"; 
    (2) an unduplicated census of children defined as medically 
fragile or technology dependent served by school districts; 
    (3) an unduplicated census of children defined as medically 
fragile or technology dependent served by licensed hospitals and 
nursing homes; 
    (4) identification of personnel and all other resources 
available to school districts to serve these children; 
    (5) identification of resources needed but not available to 
school districts to serve these children; 
    (6) recommended guidelines for serving the educational and 
support needs of these children; 
    (7) recommendations for appropriate training of educational 
and support staff to serve these children; and 
    (8) recommendations for better coordination of education, 
health, and social services to children and their families. 
    (c) The council is encouraged to involve representatives of 
the following groups: 
    (1) children who are medically fragile or technology 
dependent and their families; 
    (2) relevant professionals and paraprofessionals serving 
these children, including nurses, social workers, and teachers; 
    (3) advocates for children and families; and 
    (4) other relevant groups as determined by the commissioner.
    (d) A preliminary report must be made to the legislature by 
February 1, 1993, and a final report must be made by February 1, 
1994. 
    Sec. 29.  [REENACTMENT.] 
    Minnesota Statutes 1990, section 123.744, as amended by 
Laws 1991, chapter 265, article 9, section 41, is reenacted. 
    Sec. 30.  [PEER REVIEW MANDATE DELAY.] 
    Laws 1991, chapter 265, article 9, sections 45, 46, 47, 48, 
52, 53, 54, and 55, are effective July 1, 1994, notwithstanding 
Laws 1991, chapter 265. 
    Sec. 31.  [RECOMMENDATIONS ON BINDING ARBITRATION.] 
    As an alternative to the bargaining deadline and aid 
penalty in Minnesota Statutes, section 124A.22, subdivision 2a, 
the legislative commission on employee relations must evaluate 
and make recommendations to the legislature regarding the use of 
binding arbitration as a method to resolve negotiations at 
impasse between exclusive representatives for teachers and 
school boards.  The report must be submitted by January 15, 1993.
    Sec. 32.  [LEGISLATIVE COMMITMENT TO A RESULTS-ORIENTED 
GRADUATION RULE.] 
    The legislature is committed to establishing a rigorous, 
results-oriented graduation rule for Minnesota's public school 
students.  To that end, the state board of education shall use 
its rulemaking authority granted under Minnesota Statutes, 
section 121.11, subdivision 12, to adopt a statewide, 
results-oriented graduation rule according to the timeline in 
section 34.  The board shall not prescribe in rule or otherwise 
the delivery system, form of instruction, or a single statewide 
form of assessment that local sites must use to meet the 
requirements contained in the rule. 
    Sec. 33.  [STATE BOARD GRADUATION RULE.] 
    The state board of education shall report to the education 
committees of the legislature a progress report about the 
proposed high school graduation rule by February 1, 1993, and a 
final report about the proposed rule by January 1, 1994.  
Notwithstanding Minnesota Statutes, section 121.11, subdivision 
12, the state board of education may continue its proceedings to 
adopt a graduation rule but must not take final action under 
Minnesota Statutes, sections 14.131 to 14.20 to adopt the rule 
before July 1.  The 180-day time limit in Minnesota Statutes, 
section 14.19, does not apply to the rule. 
    Sec. 34.  [BOARD OF TEACHING TO APPOINT LICENSING TASK 
FORCE.] 
    The board of teaching shall appoint a task force composed 
of board members and representatives of support personnel, 
including school counselors, school psychologists, school 
nurses, school social workers, media generalists and media 
supervisors, to study and recommend to the education committees 
of the legislature by February 15, 1993, the appropriate role 
for the board in licensing support personnel and whether support 
personnel should be required to successfully complete: 
    (1) an examination of skills in reading, writing, and 
mathematics; 
    (2) other examinations required of teachers; or 
    (3) a supervised and assessed internship in a professional 
development school. 
    Expenses incurred by task force members shall be reimbursed 
by the organizations they represent. 
    Sec. 35.  [REPEALER.] 
    Minnesota Statutes 1990, section 125.03, subdivision 5, is 
repealed. 
    Sec. 36.  [EFFECTIVE DATES.] 
    Section 1 is effective the first Monday of January, 1995.  
Section 6 is effective retroactive to the beginning of the 
1991-1992 school year.  Section 25 is effective the day after 
the governing body of special school district No. 1, 
Minneapolis, complies with Minnesota Statutes, section 645.021, 
subdivision 3. 

                               ARTICLE 9 

                            CHOICE PROGRAMS  
    Section 1.  Minnesota Statutes 1991 Supplement, section 
120.062, subdivision 8a, is amended to read: 
    Subd. 8a.  [EXCEPTIONS TO DEADLINES.] Notwithstanding 
subdivision 4, the following pupil application procedures apply: 
    (a) Upon agreement of the resident and nonresident school 
districts, a pupil may submit an application to a nonresident 
district after January 15 for enrollment beginning the following 
school year.  
    (b) If, as a result of entering into, modifying, or 
terminating an agreement under section 122.541 or 122.535 
between school boards, a pupil is assigned after December 1 to a 
different school for enrollment beginning at any time, the 
pupil, the pupil's siblings, or any other pupil residing in the 
pupil's residence may submit an application to a nonresident 
district at any time before July 1 for enrollment beginning the 
following school year. 
    (c) A pupil who becomes a resident of a school district 
after December 1 may submit an application to a nonresident 
district on January 15 or any time after that date for 
enrollment beginning any time before the following December 1. 
    (d) If the commissioner of education and the commissioner 
of human rights determine that the policies, procedures, or 
practices of a school district are in violation of Title VI of 
the Civil Rights Act of 1964 (Public Law Number 88-352) or 
chapter 363, any pupil in the district may submit an application 
to a nonresident district at any time for enrollment beginning 
at any time. 
    For exceptions under this subdivision, the applicant, the 
applicant's parent or guardian, the district of residence, and 
the district of attendance must observe, in a prompt and 
efficient manner, the application and notice procedures in 
subdivisions 4 and 6, except that the application and notice 
deadlines do not apply. 
    Sec. 2.  Minnesota Statutes 1990, section 123.33, 
subdivision 7, is amended to read: 
    Subd. 7.  The board shall superintend and manage the 
schools of the district; adopt rules for their organization, 
government, and instruction; keep registers; and prescribe 
textbooks and courses of study.  The board may enter into an 
agreement with a post-secondary institution for secondary or 
post-secondary nonsectarian courses to be taught at a secondary 
school or a, nonsectarian post-secondary institution, or another 
location. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
123.3514, subdivision 4, is amended to read: 
    Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
any other law to the contrary, an 11th or 12th grade pupil, 
except a foreign exchange pupil enrolled in a district under a 
cultural exchange program, may apply to an eligible institution, 
as defined in subdivision 3, to enroll in nonsectarian courses 
offered at by that post-secondary institution.  If an 
institution accepts a secondary pupil for enrollment under this 
section, the institution shall send written notice to the pupil, 
the pupil's school district, and the commissioner of education 
within ten days of acceptance.  The notice shall indicate the 
course and hours of enrollment of that pupil.  If the pupil 
enrolls in a course for post-secondary credit, the institution 
shall notify the pupil about payment in the customary manner 
used by the institution. 
     Sec. 4.  [REENACTMENT.] 
     Minnesota Statutes 1990, section 123.3514, subdivisions 6 
and 6b, as amended by Laws 1991, chapter 265, article 9, 
sections 38 and 39, are reenacted. 
    Sec. 5.  Laws 1991, chapter 265, article 9, section 75, is 
amended to read: 
    Sec. 75.  [REPEALER.] 
    Minnesota Statutes 1990, sections 120.105; 121.932, 
subdivision 1; 121.933, subdivision 2; 121.935, subdivision 3; 
121.937, subdivision 2; 122.43, subdivision 1; 123.3514, 
subdivisions 6 and 6b; and 123.73, are repealed.  Minnesota 
Rules, parts 3560.0030, subparts 2(A), 4, and 5; 3560.0040, 
subparts 2 and 4; and 3560.0060, are repealed. 
    Minnesota Statutes 1990, section 123.744, is repealed.  
Laws 1988, chapter 703, article 1, section 23, as amended by 
Laws 1989, chapter 293, section 81; and Laws 1989, chapters 293, 
section 82, and 329, article 9, section 30, are repealed. 
    Sec. 6.  Minnesota Statutes 1990, section 123.3514, is 
amended by adding a subdivision to read: 
    Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
pupil, according to subdivision 4, may enroll in a nonsectarian 
course taught by a secondary teacher or a post-secondary faculty 
member and offered at a secondary school, or another location, 
according to an agreement between a school board and the 
governing body of an eligible public post-secondary system or an 
eligible private post-secondary institution, as defined in 
subdivision 3.  All provisions of this section shall apply to a 
pupil, school board, school district, and the governing body of 
a post-secondary institution, except as otherwise provided. 
    Sec. 7.  Minnesota Statutes 1990, section 123.3514, 
subdivision 6, as amended by Laws 1991, chapter 265, article 9, 
section 38, as reenacted, is amended to read: 
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] At the end of each 
school year For a pupil enrolled in a course under this section, 
the department of education shall pay the tuition reimbursement 
amount within 30 days to the post-secondary institutions make 
payments according to this subdivision for courses that were 
taken for secondary credit.  The amount of tuition reimbursement 
shall equal the lesser of: 
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course taken by the secondary 
pupil; or 
    (2) an amount equal to the difference between the basic 
revenue of the district for that pupil and an amount computed by 
multiplying the basic revenue of the district for that pupil by 
a ratio.  The ratio to be used is the total number of hours that 
the pupil is enrolled in courses in the secondary school during 
the regular school year over the total number of secondary 
instructional hours per pupil in that pupil's resident district. 
    For fiscal year 1992, for a pupil attending a 
post-secondary institution under this section, whether the pupil 
is enrolled in the post-secondary institution for secondary 
credit, post-secondary credit, or a combination of both, a 
school district shall receive aid equal to the sum of: 
    (1) 12 percent of the formula allowance, according to 
section 124.22, subdivision 2, times 1.3; plus 
    (2) for a pupil who attends a secondary school part time, 
the formula allowance, according to section 124.22, subdivision 
2, times 1.3, times the ratio of the total number of hours the 
pupil is in membership for courses taken by the pupil for 
credit, to 1020 hours. 
If a pupil is enrolled in a course for post-secondary credit, 
the school district shall include the pupil in the average daily 
membership only for the portion of time during which the pupil 
is enrolled in courses at the secondary school and enrolled in 
courses at a post-secondary institution for secondary credit. 
    The department shall not pay any tuition reimbursement or 
other costs of make payments to a school district or 
post-secondary institution for a course taken for post-secondary 
credit only.  
    For fiscal year 1993 and thereafter, A public 
post-secondary system or private post-secondary institution 
shall be reimbursed according to receive the following: 
    (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
    (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance, 
multiplied by 1.3, and divided by 30. 
    The department of education shall pay to each public 
post-secondary system and to each private institution 100 
percent of the amount in clause (1) or (2) within 30 days of 
receiving initial enrollment information each quarter or 
semester.  If changes in enrollment occur during a quarter or 
semester, the change shall be reported by the post-secondary 
system or institution at the time the enrollment information for 
the succeeding quarter or semester is submitted.  At any time 
the department of education notifies a post-secondary system or 
institution that an overpayment has been made, the system or 
institution shall promptly remit the amount due. 
    For fiscal year 1993 and thereafter, A school district 
shall receive: 
    (1) for a pupil who is not enrolled in classes at a 
secondary school, 12 percent of the formula allowance, according 
to section 124.22 124A.22, subdivision 2, times 1.3; or 
    (2) for a pupil who attends a secondary school part time, 
88 percent of the product of the formula allowance, according to 
section 124.22 124A.22, subdivision 2, times 1.3, times the 
ratio of the total number of hours the pupil is in membership 
for courses taken by the pupil for credit, to 1020 hours. 
    Sec. 8.  Minnesota Statutes 1990, section 123.3514, 
subdivision 6b, as amended by Laws 1991, chapter 265, article 9, 
section 39, as reenacted, is amended to read: 
    Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
At the end of each school year For a pupil enrolled in a course 
according to this section, the department of education shall pay 
the tuition reimbursement amount to the post-secondary 
institutions make payments according to this subdivision for 
courses taken to fulfill high school graduation requirements by 
pupils eligible for adult high school graduation aid.  The 
amount of the tuition reimbursement equals the lesser of:  
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course or program taken by the 
pupil; or 
    (2) an amount equal to the difference between the adult 
high school graduation aid attributable to that pupil and an 
amount computed by multiplying the adult high school graduation 
aid by the ratio of the total number of hours that the pupil is 
enrolled in courses in the secondary school during the regular 
school year over the total number of secondary instructional 
hours per pupil in that pupil's resident district.  
    For fiscal year 1992, for a pupil attending a 
post-secondary institution under this section, whether the pupil 
is enrolled in the post-secondary institution for secondary 
credit, post-secondary credit, or a combination of both, a 
school district shall receive aid equal to the sum of: 
    (1) 12 percent of the formula allowance, according to 
section 124.22, subdivision 2, times 1.3; plus 
    (2) for a pupil who attends a secondary school part time, 
the adult high school graduation aid times 1.3, times the ratio 
of the total number of hours the pupil is in membership for 
courses taken by the pupil for credit, to 1020 hours. 
If a pupil is enrolled in a course for post-secondary credit, 
the school district shall include the pupil in average daily 
membership as computed under section 120.17, subdivision 1, only 
for the portion of time during which the pupil is enrolled in 
courses at the secondary school and enrolled in courses at the 
post-secondary institution for secondary credit.  
    The department must not pay any tuition reimbursement or 
other costs of make payments to a school district or 
post-secondary institution for a course taken for post-secondary 
credit only. 
    For fiscal year 1993 and thereafter, A public 
post-secondary system or private post-secondary institution 
shall be reimbursed according to receive the following: 
    (1) for an institution granting quarter credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the formula allowance, multiplied by 
1.3, and divided by 45; or 
    (2) for an institution granting semester credit, the 
reimbursement per credit hour shall be an amount equal to 88 
percent of the product of the general revenue formula allowance 
multiplied by 1.3, and divided by 30. 
    The department of education shall pay to each public 
post-secondary system and to each private institution 100 
percent of the amount in clause (1) or (2) within 30 days of 
receiving initial enrollment information each quarter or 
semester.  If changes in enrollment occur during a quarter or 
semester, the change shall be reported by the post-secondary 
system or institution at the time the enrollment information for 
the succeeding quarter or semester is submitted.  At any time 
the department of education notifies a post-secondary system or 
institution that an overpayment has been made, the system or 
institution shall promptly remit the amount due. 
    For fiscal year 1993 and thereafter, A school district 
shall receive: 
    (1) for a pupil who is not enrolled in classes at a 
secondary program, 12 percent of the adult high school 
graduation aid general education formula allowance times .65, 
times 1.3; or 
    (2) for a pupil who attends classes at a secondary program 
part time, 88 percent of the product of the adult high school 
graduation aid general education formula allowance times .65, 
times 1.3, times the ratio of the total number of hours the 
pupil is in membership for courses taken by the pupil for credit 
to 1020 hours. 
    Sec. 9.  Minnesota Statutes 1990, section 123.3514, is 
amended by adding a subdivision to read: 
    Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
ACCORDING TO AGREEMENTS.] The agreement between a school board 
and the governing body of a public post-secondary system or 
private post-secondary institution shall set forth the payment 
amounts and arrangements, if any, from the school board to the 
post-secondary institution.  No payments shall be made by the 
department of education according to subdivision 6 or 6b.  For 
the purpose of computing state aids for a school district, a 
pupil enrolled according to subdivision 4e shall be counted in 
the average daily membership of the school district as though 
the pupil were enrolled in a secondary course that is not 
offered in connection with an agreement.  Nothing in this 
subdivision shall be construed to prohibit a public 
post-secondary system or private post-secondary institution from 
receiving additional state funding that may be available under 
any other law. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
123.3514, subdivision 11, is amended to read: 
    Subd. 11.  [PUPILS AT A DISTANCE 40 MILES OR MORE FROM AN 
ELIGIBLE INSTITUTION.] A pupil who is enrolled in a secondary 
school that is located 40 miles or more from the nearest 
eligible institution may request that the resident district 
offer at least one accelerated or advanced academic course 
within the resident district in which the pupil may enroll for 
post-secondary credit.  A pupil may enroll in a course offered 
under this subdivision for either secondary or post-secondary 
credit according to subdivision 5. 
    A district must offer an accelerated or advanced academic 
course for post-secondary credit if one or more pupils requests 
such a course under this subdivision.  The district may decide 
which course to offer, how to offer the course, and whether to 
offer one or more courses.  The district must offer at least one 
such course in the next academic period and must continue to 
offer at least one accelerated or advanced academic course for 
post-secondary credit in later academic periods. 
    Sec. 11.  Minnesota Statutes 1990, section 123.3514, is 
amended by adding a subdivision to read: 
    Subd. 11a.  [PUPILS LESS THAN 40 MILES FROM AN ELIGIBLE 
INSTITUTION.] A pupil enrolled in a secondary school that is 
located less than 40 miles from the nearest eligible institution 
may enroll in a post-secondary course provided at the secondary 
school. 
    Sec. 12.  Minnesota Statutes 1990, section 126.22, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [ADDITIONAL ELIGIBLE PUPILS.] In addition to the 
eligible pupils under subdivision 2, clauses (a), (b), and (c), 
the following pupils are eligible: 
    (1) victims of physical or sexual abuse; 
    (2) pupils who have experienced mental health problems; and 
    (3) pupils who have experienced homelessness any time 
within a six-month period prior to the date of requesting a 
transfer to an eligible program. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
126.23, is amended to read: 
    126.23 [AID FOR PRIVATE ALTERNATIVE PROGRAMS.] 
    If a pupil enrolls in a nonsectarian an alternative 
program, eligible under section 126.22, subdivision 3, paragraph 
(d), or subdivision 3a, operated by a private organization that 
has contracted with a school district to provide educational 
services for eligible pupils under section 126.22, subdivision 
2, the resident district must reimburse the provider an amount 
equal to at least 88 percent of the basic revenue of the 
district for each pupil attending the program full time.  For a 
pupil attending the program part time, basic revenue paid to the 
program shall be reduced proportionately, according to the 
amount of time the pupil attends the program, and basic revenue 
paid to the district shall be reduced accordingly.  Pupils for 
whom a district provides reimbursement may not be counted by the 
district for any purpose other than computation of basic 
revenue, according to section 124A.22, subdivision 2.  If 
payment is made to a district or program for a pupil under this 
section, the department of education shall not make a payment 
for the same pupil under section 126.22, subdivision 8. 
    Sec. 14.  [135A.18] [AUTHORIZATION FOR AGREEMENTS.] 
    The governing board of a public post-secondary system may 
enter into an agreement with a school board to provide a 
nonsectarian course taught by secondary teachers or 
post-secondary faculty members to an eligible pupil, as defined 
in section 123.3514, subdivision 4, and offered at a secondary 
school or another location.  
    Sec. 15.  [EFFECTIVE DATE.] 
    Section 3 is effective retroactively to July 1, 1991, and 
applies to the 1991-1992 and later school years.  Sections 10 
and 11 are effective July 1, 1993. 
    Sections 6 and 14 are effective retroactively to July 1, 
1991. 

                               ARTICLE 10

                               LIBRARIES 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
13.40, subdivision 2, is amended to read: 
    Subd. 2.  [PRIVATE DATA; RECORDS OF BORROWING LIBRARY 
BORROWERS.] That portion of The following data maintained by a 
library which links are private data on individuals and may not 
be disclosed for other than library purposes except pursuant to 
a court order: 
    (1) data that link a library patron's name with materials 
requested or borrowed by the patron or which links that link a 
patron's name with a specific subject about which the patron has 
requested information or materials is classified as private, 
under section 13.02, subdivision 12, and shall not be disclosed 
except pursuant to a valid court order; or 
    (2) data in applications for borrower cards, other than the 
name of the borrower. 
    Sec. 2.  Minnesota Statutes 1990, section 134.34, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LOCAL SUPPORT LEVELS.] A regional library 
basic system support grant shall be made to any regional public 
library system where there are at least three participating 
counties and where each participating city and county, except in 
the first year of participation as provided in section 134.33, 
is providing for public library service support the lesser of 
(a) an amount equivalent to 0.33 percent of the adjusted gross 
tax capacity of the taxable property of that city or county, as 
determined by the commissioner of revenue for the second year 
preceding that calendar year in 1990 and an amount equivalent 
to .41 .82 percent of the adjusted net tax capacity of the 
taxable property of that city or county, as determined by the 
commissioner of revenue for the second year preceding that 
calendar year in 1991 and later years or (b) a per capita amount 
calculated under the provisions of this subdivision.  The per 
capita amount is established for calendar year 1990 1993 as 
$3.62 $7.62.  In succeeding calendar years, the per capita 
amount shall be increased by a percentage equal to one-half of 
the percentage by which the total state adjusted net tax 
capacity of property as determined by the commissioner of 
revenue for the second year preceding that calendar year 
increases over that total adjusted net tax capacity for the 
third year preceding that calendar year.  The minimum level of 
support shall be certified annually to the participating cities 
and counties by the department of education.  A city which is a 
part of a regional public library system shall not be required 
to provide this level of support if the property of that city is 
already taxable by the county for the support of that regional 
public library system.  In no event shall the department of 
education require any city or county to provide a higher level 
of support than the level of support specified in this section 
in order for a system to qualify for a regional library basic 
system support grant.  This section shall not be construed to 
prohibit a city or county from providing a higher level of 
support for public libraries than the level of support specified 
in this section.  
    Sec. 3.  Minnesota Statutes 1990, section 134.34, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [SUPPORT GRANTS.] In state fiscal years 1993, 
1994, and 1995, a regional library basic system support grant 
also may be made to a regional public library system for a 
participating city or county which meets the requirements under 
paragraph (a) or (b). 
    (a) The city or county decreases the dollar amount provided 
by it for operating purposes of public library service if the 
amount provided by the city or county is not less than the 
amount provided by the city or county for such purposes in the 
second preceding year. 
    (b)(1) The city or county provided for operating purposes 
of public library services an amount exceeding 125 percent of 
the state average percentage of the adjusted net tax capacity or 
125 percent of the state average local support per capita; and 
    (2) the local government aid distribution for the current 
calendar year under chapter 477A has been reduced below the 
originally certified amount for payment in the preceding 
calendar year, if the dollar amount of the reduction from the 
previous calendar year in support for operating purposes of 
public library services is not greater than the dollar amount by 
which support for operating purposes of public library service 
would be decreased if the reduction in support were in direct 
proportion to the local government aid reduction as a percentage 
of the previous calendar year's revenue base as defined in 
section 477A.011, subdivision 27.  Determination of a grant 
under paragraph (b) shall be based on the most recent calendar 
year for which data are available. 
    The city or county shall file a report with the department 
of education indicating the dollar amount and percentage of 
reduction in public library operating funds. 
    Sec. 4.  [REPEALER.] 
    Minnesota Statutes 1990, section 134.34, subdivision 2, is 
repealed. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Section 2 is effective January 1, 1993. 
    Section 3 is effective the day following final enactment. 
    Section 4 is effective January 1, 1993. 

                               ARTICLE 11

                             STATE AGENCIES
    Section 1.  Minnesota Statutes 1991 Supplement, section 
120.17, subdivision 7a, is amended to read: 
    Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE HANDICAPPED.] 
Responsibility for special instruction and services for a 
visually disabled or hearing impaired child attending the 
Minnesota state academy for the deaf or the Minnesota state 
academy for the blind shall be determined in the following 
manner: 
     (a) The legal residence of the child shall be the school 
district in which the child's parent or guardian resides. 
     (b) When it is determined pursuant to section 128A.05, 
subdivision 1 or 2, that the child is entitled to attend either 
school, the state board shall provide the appropriate 
educational program for the child.  The state board shall make a 
tuition charge to the child's district of residence for the cost 
of providing the program.  The amount of tuition charged shall 
not exceed the basic revenue of the district for that child, for 
the amount of time the child is in the program.  For purposes of 
this subdivision, "basic revenue" has the meaning given it in 
section 124A.22, subdivision 2.  The district of the child's 
residence shall pay the tuition and may claim general education 
aid for the child.  The district of the child's residence shall 
not receive aid pursuant to section 124.32, subdivision 5, for 
tuition paid pursuant to this subdivision.  Tuition received by 
the state board, except for tuition received under clause (c), 
shall be deposited in the state treasury as provided in clause 
(g). 
     (c) In addition to the tuition charge allowed in clause 
(b), the academies may charge the child's district of residence 
for the academy's unreimbursed cost of providing an 
instructional aide assigned to that child, if that aide is 
required by the child's individual education plan.  Tuition 
received under this clause must be used by the academies to 
provide the required service. 
     (d) When it is determined that the child can benefit from 
public school enrollment but that the child should also remain 
in attendance at the applicable school, the school district 
where the institution is located shall provide an appropriate 
educational program for the child and shall make a tuition 
charge to the state board for the actual cost of providing the 
program, less any amount of aid received pursuant to section 
124.32.  The state board shall pay the tuition and other program 
costs including the unreimbursed transportation costs.  Aids for 
handicapped children shall be paid to the district providing the 
special instruction and services.  Special transportation shall 
be provided by the district providing the educational program 
and the state shall reimburse such district within the limits 
provided by law.  
     (e) Notwithstanding the provisions of clauses (b) and (d), 
the state board may agree to make a tuition charge for less than 
the amount specified in clause (b) for pupils attending the 
applicable school who are residents of the district where the 
institution is located and who do not board at the institution, 
if that district agrees to make a tuition charge to the state 
board for less than the amount specified in clause (d) for 
providing appropriate educational programs to pupils attending 
the applicable school. 
    (f) Notwithstanding the provisions of clauses (b) and (d), 
the state board may agree to supply staff from the Minnesota 
state academy for the deaf and the Minnesota state academy for 
the blind to participate in the programs provided by the 
district where the institutions are located when the programs 
are provided to students in attendance at the state schools.  
    (g) On May 1 of each year, the state board shall count the 
actual number of Minnesota resident kindergarten and elementary 
students and the actual number of Minnesota resident secondary 
students enrolled and receiving education services at the 
Minnesota state academy for the deaf and the Minnesota state 
academy for the blind.  The state board shall deposit in the 
state treasury an amount equal to all tuition received less:  
    (1) the total number of students on May 1 less 175, times 
the ratio of the number of kindergarten and elementary students 
to the total number of students on May 1, times the general 
education formula allowance; plus 
    (2) the total number of students on May 1 less 175, times 
the ratio of the number of secondary students on May 1 to the 
total number of students on May 1, times 1.3, times the general 
education formula allowance.  
    (h) The sum provided by the calculation in clause (g), 
subclauses (1) and (2), must be deposited in the state treasury 
and credited to the general operation account of the academy for 
the deaf and the academy for the blind.  
    (i) There is annually appropriated to the department of 
education for the Faribault academies the tuition amounts 
received and credited to the general operation account of the 
academies under this section.  A balance in an appropriation 
under this paragraph does not cancel but is available in 
successive fiscal years. 
    Sec. 2.  Minnesota Statutes 1990, section 124C.07, is 
amended to read: 
    124C.07 [COMPREHENSIVE ARTS PLANNING PROGRAM.] 
    The department of education shall prescribe the form and 
manner of application by one or more school districts to be 
designated as a site to participate in the comprehensive arts 
planning program.  Up to 30 sites may be selected.  The 
department of education shall designate sites in consultation 
with the Minnesota alliance for arts in education, the Minnesota 
center for arts education, and the Minnesota state arts board.  
    Sec. 3.  Minnesota Statutes 1990, section 124C.08, 
subdivision 2, is amended to read: 
    Subd. 2.  [CRITERIA.] The department of education, in 
consultation with the Minnesota alliance for arts in education 
comprehensive arts planning program state steering committee, 
shall establish criteria for site selection.  Criteria shall 
include at least the following:  
    (1) a willingness by the district or group of districts to 
designate a program chair for comprehensive arts planning with 
sufficient authority to implement the program; 
    (2) a willingness by the district or group of districts to 
create a committee comprised of school district and community 
people whose function is to promote comprehensive arts education 
in the district; 
    (3) commitment on the part of committee members to 
participate in training offered by the department of education; 
    (4) a commitment of the committee to conduct a needs 
assessment of arts education; 
    (5) commitment by the committee to evaluating its 
involvement in the program; 
    (6) a willingness by the district to adopt a long-range 
plan for arts education in the district; 
    (7) no previous involvement of the district in the 
comprehensive arts planning program, unless that district has 
joined a new group of districts; and 
    (8) location of the district or group of districts to 
assure representation of urban, suburban, and rural districts 
and distribution of sites throughout the state. 
    Sec. 4.  Minnesota Statutes 1990, section 124C.09, is 
amended to read: 
    124C.09 [DEPARTMENT RESPONSIBILITY.] 
    The department of education, in cooperation with the 
Minnesota alliance for arts in education and, the Minnesota 
state arts board, and the Minnesota center for arts education 
shall provide materials, training, and assistance to the arts 
education committees in the school districts.  The department 
may contract with the Minnesota alliance for arts in education 
for its involvement in providing services, including staff 
assistance, to the program.  
    Sec. 5.  Minnesota Statutes 1990, section 128A.09, is 
amended by adding a subdivision to read: 
    Subd. 3.  [CONTRACTS; FEES; APPROPRIATION.] The state board 
may enter into agreements for the academies to provide respite 
care and supplemental educational instruction and services 
including assessments and counseling.  The agreements may be 
made with public or private agencies or institutions, school 
districts, education cooperative service units, or counties.  
The board may authorize the academies to provide conferences, 
seminars, nondistrict and district requested technical 
assistance, and production of instructionally-related materials. 
    Sec. 6.  Minnesota Statutes 1990, section 128A.09, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEES; APPROPRIATION.] Income from fees for 
conferences, seminars, nondistrict technical assistance, and 
production of instructionally-related materials received under 
section 5 must be deposited in the state treasury and credited 
to a revolving fund of the academies.  Money in the revolving 
fund for fees from conferences, seminars, nondistrict technical 
assistance, and production of instructionally-related 
materials and other services is annually appropriated to the 
academies to defray expenses of the conferences, seminars, 
technical assistance, and production of materials those 
services.  Payment from the revolving fund for conferences and 
other fees may be made only according to vouchers authorized by 
the administrator of the academies. 
    Sec. 7.  Laws 1991, chapter 265, article 7, section 41, 
subdivision 4, is amended to read:  
    Subd. 4.  [OUTCOME-BASED EDUCATION PROGRAM CONTRACTS.] For 
entering into contracts for outcome-based education programs 
according to section 37: 
     $675,000     .....     1992
     $675,000     .....     1993
    $55,000 each year is for evaluation and administration of 
the program. 
    A balance in the first year does not cancel but is 
available in the second year. 
    Sec. 8.  Laws 1991, chapter 265, article 11, section 23, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] (a) The sums 
indicated in this section are appropriated from the general 
fund, unless otherwise indicated, to the department of education 
for the fiscal years designated. 
    (b) The amounts that may be spent for each program are 
specified in the following subdivisions. 
    (c) The approved complement is: 
                                     1992          1993
General Fund                        258.5         258.5 214.5
Federal                             135.6         135.6 137.7
Other                                28.9          28.9  25.3
Total                               423.0         423.0 377.5
    (d) The commissioner of education, with the approval of the 
commissioner of finance, may transfer unencumbered balances 
among the programs during the biennium.  Transfers must be 
reported immediately to the education finance division of the 
education committee of the house of representatives and the 
education funding division of the education committee of the 
senate.  During the biennium, the commissioner may transfer 
money among the various objects of expenditure categories and 
activities within each program, unless restricted by executive 
order. 
    (e) The commissioner of education may transfer complement 
among funds if necessary and must provide a listing of the 
transfers to the commissioner of finance at the end of each 
fiscal year.  Material changes must be approved by the 
commissioner of finance and reported to the house education 
finance division and the senate education funding division. 
    (f) The expenditures of federal grants and aids as shown in 
the biennial budget document are approved and shall be spent as 
indicated. 
    (g) The commissioner shall continue to enforce Minnesota 
Statutes, section 126.21, and other civil rights laws as they 
apply to programs supervised by the commissioner.  This function 
must not be performed by the same person who, with funding under 
a federal grant, is providing technical assistance to school 
districts in implementing nondiscrimination laws. 
    (h) It is the policy of the legislature to maximize the 
delivery of educational services to students.  If a reduction in 
the number of employees of the department of education is 
necessary, the commissioner must make the reduction to personnel 
based on the following: 
    (1) Compute a ratio for each category of management, 
supervisory, line, and support personnel equal to: 
    (i) the salaries paid to personnel in each category, for 
the fiscal year ending June 30, 1991, divided by 
    (ii) the total salaries paid to employees in the department 
for the fiscal year ending June 30, 1991. 
    (2) Reduce the personnel budget in each category of 
personnel by an amount equal to the total budget reduction 
determined by the department for personnel reduction, times the 
ratio computed in clause (1). 
    (3) The total budget reduction is the difference between 
the general fund appropriation for the department and the amount 
recommended by the governor. 
    Sec. 9.  [LAND TRANSFER.] 
    Subdivision 1.  [PERMITTED.] (a) Notwithstanding Minnesota 
Statutes, chapters 94 and 103F or any other law to the contrary, 
the state of Minnesota may convey the land described in 
paragraph (b) to independent school district No. 656, Faribault. 
    (b) The land which may be conveyed under paragraph (a) is 
legally described in general as follows:  
 All that part of the Southeast Quarter of the Southwest 
Quarter (SE 1/4 of SW 1/4) and all that part of the 
Southwest Quarter of the Southeast Quarter (SW 1/4 of SE 
1/4), all in Section 29, Township 110 North, Range 20 West, 
in the City of Faribault, Rice County, Minnesota, owned by 
the state of Minnesota or any department or division 
thereof. 
 or 
 All that part of the Northwest Quarter of the Southwest 
Quarter (NW 1/4 of SW 1/4) of Section 28, and of the 
Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 
1/4) of Section 29, all in Township 110 North, Range 20 
West, Rice County, Minnesota, owned by the State of 
Minnesota or any department or division thereof. 
    (c) A more precise legal description in substantial 
conformance with the description in paragraph (b) must be 
provided by the grantee in the instruments of conveyance.  Both 
the precise legal descriptions and the instruments of conveyance 
must be approved as to form by the attorney general.  
    Subd. 2.  [CONSIDERATION.] The consideration for the 
conveyance permitted by subdivision 1 is the amount at which the 
parcel or parcels are appraised by a qualified state appraiser 
who is appointed by agreement of the parties.  
    Subd. 3.  [APPROPRIATION.] The proceeds of the sale are 
appropriated to the department of education for the use of the 
state academies for whose account the sale is made and may be 
used for capital improvements at the academies. 
    Subd. 4.  [PURPOSE.] The land permitted to be conveyed 
under subdivision 1 is to be used as part of a site for an 
elementary school. 
    Sec. 10.  [APPROPRIATIONS REDUCTION.] 
    The general fund appropriations in Laws 1991, chapter 265, 
are reduced for the fiscal years indicated for the programs 
shown by the following amounts: 
                                          1992         1993 
Transportation Aid                   ($1,468,200)     (259,100)
Summer Special Education Aid             (23,100)
Individualized Learning and 
Development Aid                         (401,200)      (70,800)
Assurance of Mastery                     (11,300)       (2,000)
Special Programs Equalization Aid                   (1,000,000)
Adult Basic Education Aid                             (200,000)
Capital Expenditure Facilities Aid                    (940,800)
Capital Expenditure Equipment Aid                     (955,100)
Health and Safety Aid                 (1,147,500)     (202,500)
Secondary Vocational Cooperative Aid      (5,700)       (1,000)
Educational Cooperative Service Units                  (15,000)
Management Information Centers                        (136,000)
Nonpublic Pupil Aid                     (146,500)      (25,800)
Teacher Mentorship                                     (10,000)
Educational Effectiveness                              (30,000)
State PER Assistance                                   (24,000)
Department of Education                               (140,000)
    The commissioner of education may allocate the reduction in 
the department among the department's programs.  The reduction 
may not be made from the Faribault academies.  
    Sec. 11.  [REPEALER.] 
    Minnesota Statutes 1990, sections 121.25; 121.26; 121.27; 
121.28; 128A.022, subdivisions 5 and 7; and 128A.024, 
subdivision 1, are repealed. 
     Sec. 12.  [EFFECTIVE DATE.] 
     Sections 1, 7, 9, and 10 are effective the day following 
final enactment. 

                               ARTICLE 12 

                 NONCONTROVERSIAL AND TECHNICAL CHANGES 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
120.064, subdivision 4, is amended to read: 
    Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
authorize one or more licensed teachers under section 215.182 
125.05, subdivision 2 1, to form and operate an outcome-based 
school subject to approval by the state board of education.  The 
teachers shall organize and operate a school as a cooperative 
under chapter 308A or nonprofit corporation under chapter 317A. 
    (b) Before a teacher may begin to form and operate a 
school, the sponsor must file an affidavit with the state board 
of education stating its intent to authorize an outcome-based 
school.  The affidavit must state the terms and conditions under 
which the sponsor would authorize an outcome-based school.  The 
state board must approve or disapprove the sponsor's proposed 
authorization within 30 days of receipt of the affidavit.  
Failure to obtain state board approval precludes a sponsor from 
authorizing the outcome-based school that was the subject of the 
affidavit. 
    (c) The teachers authorized to organize and operate a 
school shall hold an election for members of the school's board 
of directors.  All staff members employed at the school and all 
parents of children enrolled in the school may participate in 
the election.  Licensed teachers employed at the school must be 
a majority of the members of the board of directors. 
     (d) The sponsor's authorization for an outcome-based school 
shall be in the form of a written contract signed by the sponsor 
and the board of directors of the outcome-based school. 
    Sec. 2.  Minnesota Statutes 1990, section 122.23, 
subdivision 12, is amended to read: 
    Subd. 12.  The school board shall determine the date of the 
election, the number of boundaries of voting precincts, and the 
location of the polling places where voting shall be conducted, 
and the hours the polls will be open.  The school board shall 
also provide official ballots which shall be used exclusively 
and shall be in the following form: 
    For consolidation .... 
    Against consolidation .... 
    The school board shall appoint three election judges for 
each polling place who shall act as clerks of election.  The 
school board may pay these election judges not to exceed $1 per 
hour.  The ballots and results shall be certified to the school 
board who shall canvass and tabulate the total vote cast for and 
against the proposal. 
    Sec. 3.  Minnesota Statutes 1990, section 122.23, 
subdivision 13a, is amended to read: 
    Subd. 13a.  [CONSOLIDATION IN AN EVEN-NUMBERED YEAR.] 
Notwithstanding subdivision 13, school districts may consolidate 
during effective July 1 of an even-numbered year if the school 
board and the exclusive bargaining representative of the 
teachers in each affected district agree to the effective date 
of the consolidation.  The agreement must be in writing and 
submitted to the commissioner of education. 
    Sec. 4.  Minnesota Statutes 1990, section 122.23, 
subdivision 16, is amended to read: 
    Subd. 16.  As of the effective date of the consolidation, 
the bonded debt of all component districts shall be paid 
according to the plan for consolidation proposed in the approved 
plat, pursuant to the provisions of subdivision 16a or 16b, as 
applicable and according to this subdivision. 
    (a) If the plan for consolidation so provides, the bonded 
debt of all component districts shall be paid according to 
levies previously made for that debt under chapter 475.  In this 
case, the obligation of the taxable property in the component 
districts with reference to the payment of such bonded debt is 
not affected by the consolidation. 
    (b) If the plan for consolidation makes no provision for 
the disposition of bonded debt, all the taxable property in the 
newly created district is taxable for the payment of any bonded 
debt incurred by any component district in the proportion which 
the net tax capacity of that part of a preexisting district 
which is included in the newly created district bears to the net 
tax capacity of the entire preexisting district as of the time 
of the consolidation. 
    (c) If the plan for consolidation so provides, all the 
taxable property in the newly created district will be taxable 
for a portion of the bonded debt incurred by any component 
district prior to the consolidation. 
    Apportionment required under paragraphs (b) and (c) shall 
be made by the county auditor and shall be incorporated as an 
annex to the order of the commissioner dividing the assets and 
liabilities of the component parts.  This subdivision shall not 
relieve any property from any tax liability for payment of any 
bonded obligation but taxable property in the newly created 
district becomes primarily liable for the payment of bonded 
debts to the extent of the proportion stated. 
     Sec. 5.  Minnesota Statutes 1990, section 122.247, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REFERENDUM LEVIES REVENUES.] The 
referendum levy revenue authorization of the combined district 
shall be one of the methods set forth in section 122.531, 
subdivision 2a, 2b, or 2c, and must be consistent with the plan 
adopted according to section 122.242, and any subsequent 
modifications. 
    Sec. 6.  Minnesota Statutes 1990, section 122.531, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [INVOLUNTARY DISSOLUTION REFERENDUM LEVIES 
REVENUE.] As of the effective date of the involuntary 
dissolution of a district and its attachment to one or more 
existing districts pursuant to sections 122.32, or 122.41 to 
122.52, the authorization for any referendum levy revenue 
previously approved by the voters of the dissolved district in 
that district pursuant to section 124A.03, subdivision 2, or its 
predecessor or successor provision, is canceled.  The 
authorization for any referendum levy revenue previously 
approved by the voters of a district to which all or part of the 
dissolved district is attached shall not be affected by the 
attachment and shall apply to the entire area of the district as 
enlarged by the attachment. 
    Sec. 7.  Minnesota Statutes 1990, section 122.531, 
subdivision 2c, is amended to read: 
    Subd. 2c.  If the plan for consolidation provides for 
discontinuance of referendum levies revenue previously approved 
by voters of the component districts pursuant to section 
124A.03, subdivision 2, or its predecessor provision, the newly 
created district shall not make receive a referendum levy 
revenue unless the voters of the newly created district 
authorize a referendum levy revenue pursuant to section 124A.03, 
subdivision 2. 
    Sec. 8.  Minnesota Statutes 1990, section 123.35, is 
amended by adding a subdivision to read: 
    Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
SUPPORT.] (a) No school district shall be required by any type 
of formal or informal agreement, including a joint powers 
agreement, or otherwise to participate in or provide financial 
support for the purposes of the agreement for a time period in 
excess of one fiscal year.  Any agreement, part of an agreement, 
or other type of requirement to the contrary is void. 
    (b) This subdivision shall not affect the continued 
liability of a school district for its share of bonded 
indebtedness or other debt incurred as a result of any agreement 
before July 1, 1993.  The school district is liable only until 
the obligation or debt is discharged and only according to the 
payment schedule in effect on July 1, 1993, except that the 
payment schedule may be altered for the purpose of restructuring 
debt or refunding bonds outstanding on July 1, 1993, if the 
annual payments of the school district are not increased and if 
the total obligation of the school district for its share of 
outstanding bonds or other debt is not increased. 
    (c) To cease participating in or providing financial 
support for any of the services or activities relating to the 
agreement or to terminate participation in the agreement, the 
school board shall adopt a resolution and notify other parties 
to the agreement of its decision on or before February 1 of any 
year.  The cessation or withdrawal shall be effective June 30 of 
the same year or, at the option of the school board, June 30 of 
the following fiscal year.  
    (d) Before issuing bonds or incurring other debt, the 
governing body responsible for implementing the agreement shall 
adopt a resolution proposing to issue bonds or incur other debt 
and the proposed financial effect of the bonds or other debt 
upon each participating district.  The resolution shall be 
adopted within a time sufficient to allow the school board to 
adopt a resolution within the time permitted by this paragraph 
and to comply with the statutory deadlines set forth in sections 
122.895, 125.12, and 125.17.  The governing body responsible for 
implementing the agreement shall notify each participating 
school board of the contents of the resolution.  Within 120 days 
of receiving the resolution of the governing body, the school 
board of the participating district shall adopt a resolution 
stating: 
    (1) its concurrence with issuing bonds or incurring other 
debt; 
    (2) its intention to cease participating in or providing 
financial support for the service or activity related to the 
bonds or other debt; or 
    (3) its intention to terminate participation in the 
agreement. 
    A school board adopting a resolution according to clause 
(1) is liable for its share of bonded indebtedness or other debt 
as proposed by the governing body implementing the agreement.  A 
school board adopting a resolution according to clause (2) is 
not liable for the bonded indebtedness or other debt, as 
proposed by the governing body, related to the services or 
activities in which the district ceases participating or 
providing financial support.  A school board adopting a 
resolution according to clause (3) is not liable for the bonded 
indebtedness or other debt proposed by the governing body 
implementing the agreement. 
    (e) After July 1, 1993, a district is liable according to 
paragraph (d) for its share of bonded indebtedness or other debt 
incurred by the governing body implementing the agreement to the 
extent that the bonds or other debt are directly related to the 
services or activities in which the district participates or for 
which the district provides financial support.  The district has 
continued liability only until the obligation or debt is 
discharged and only according to the payment schedule in effect 
at the time the governing body implementing the agreement 
provides notice to the school board, except that the payment 
schedule may be altered for the purpose of refunding the 
outstanding bonds or restructuring other debt if the annual 
payments of the district are not increased and if the total 
obligation of the district for the outstanding bonds or other 
debt is not increased. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
124.155, subdivision 2, is amended to read: 
    Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (a) (1) general education aid authorized in sections 
124A.23 and 124B.20; 
    (b) (2) secondary vocational aid authorized in section 
124.573; 
    (c) (3) special education aid authorized in section 124.32; 
    (d) (4) secondary vocational aid for handicapped children 
authorized in section 124.574; 
    (e) (5) aid for pupils of limited English proficiency 
authorized in section 124.273; 
    (f) (6) transportation aid authorized in section 124.225; 
    (g) (7) community education programs aid authorized in 
section 124.2713; 
    (h) (8) adult education aid authorized in section 124.26; 
    (i) (9) early childhood family education aid authorized in 
section 124.2711; 
    (j) (10) capital expenditure aid authorized in sections 
124.243, 124.244, and 124.83; 
    (k) (11) education district aid according to section 
124.2721; 
    (l) (12) secondary vocational cooperative aid according to 
section 124.575; 
    (m) (13) assurance of mastery aid according to section 
124.311; 
    (n) (14) individual learning and development aid according 
to section 124.331; 
    (o) (15) homestead credit under section 273.13 for taxes 
payable in 1989 and additional homestead and agricultural credit 
guarantee under section 273.1398, subdivision 5, for taxes 
payable in 1990 and thereafter; 
    (p) (16) agricultural credit under section 273.132 for 
taxes payable in 1989 and additional homestead and agricultural 
credit guarantee under section 273.1398, subdivision 5, for 
taxes payable in 1990 and thereafter; 
    (q) (17) homestead and agricultural credit aid and 
disparity reduction aid authorized in section 273.1398, 
subdivision 2; and 
    (r) (18) attached machinery aid authorized in section 
273.138, subdivision 3; and 
    (19) alternative delivery aid authorized in section 124.322.
    (b) The commissioner of education shall schedule the timing 
of the adjustments to state aids and credits specified in 
subdivision 1, as close to the end of the fiscal year as 
possible. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
124.19, subdivision 1, is amended to read: 
    Subdivision 1.  [INSTRUCTIONAL TIME.] Every district shall 
maintain school in session or provide instruction in other 
districts for at least 170 days through the 1994-1995 school 
year and the number of days required in section 120.101, 
subdivision 1b 5b thereafter, not including summer school, or 
the equivalent in a district operating a flexible school year 
program.  A district that holds school for the required minimum 
number of days and is otherwise qualified is entitled to state 
aid as provided by law.  If school is not held for the required 
minimum number of days, state aid shall be reduced by the ratio 
that the difference between the required number of days and the 
number of days school is held bears to the required number of 
days, multiplied by 60 percent of the basic revenue, as defined 
in section 124A.22, subdivision 2, of the district for that year.
However, districts maintaining school for fewer than the 
required minimum number of days do not lose state aid (1) if the 
circumstances causing loss of school days below the required 
minimum number of days are beyond the control of the board, (2) 
if proper evidence is submitted, and (3) if a good faith attempt 
made to make up time lost due to these circumstances.  The loss 
of school days resulting from a lawful employee strike shall not 
be considered a circumstance beyond the control of the board.  
Days devoted to meetings authorized or called by the 
commissioner may not be included as part of the required minimum 
number of days of school.  For grades 1 to 12, days devoted to 
parent-teacher conferences, teachers' workshops, or other staff 
development opportunities as part of the required minimum number 
of days must not exceed five days through the 1994-1995 school 
year and for subsequent school years the difference between the 
number of days required in subdivision 1b and the number of 
instructional days required in subdivision 1b 5b.  For 
kindergarten, days devoted to parent-teacher conferences, 
teachers' workshops, or other staff development opportunities as 
part of the required minimum number of days must not exceed 
twice the number of days for grades 1 to 12. 
    Sec. 11.  Minnesota Statutes 1991 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 net tax capacity 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 local tax rate as determined by the county auditor based 
upon the original net tax capacity is applied upon the changed 
net tax capacities, the county auditor shall, prior to February 
1 of each year, certify to the commissioner of education the 
amount of any resulting net revenue loss that accrued to the 
school district during the preceding year.  Each year, the 
commissioner shall pay an abatement adjustment to the district 
in an amount calculated according to the provisions of this 
subdivision.  This amount shall be deducted from the amount of 
the levy authorized by section 275.48.  The amount of the 
abatement adjustment shall be the product of:  
    (1) the net revenue loss as certified by the county 
auditor, times 
    (2) the ratio of:  
    (a) the sum of the amounts of the district's certified levy 
in the preceding year according to the following:  
    (i) section 124A.23 if the district receives general 
education aid according to that section, or section 124B.20, if 
the education district of which the district is a member 
receives general education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.243, if the district receives capital 
expenditure facilities aid according to that section; 
    (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (v) section 124.83, if the district receives health and 
safety aid according to that section; 
    (vi) sections 124.2713, 124.2714, and 124.2715, if the 
district receives aid for community education programs according 
to any of those sections; and 
    (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; 
    (viii) section 124.321, subdivision 3, if the district 
receives special education levy equalization aid according to 
that section; 
    (ix) section 124A.03, subdivision 1g, if the district 
receives referendum equalization aid according to that section; 
and 
    (x) section 124A.22, subdivision 4a, if the district 
receives training and experience aid according to that section; 
    (b) to the total amount of the district's certified levy in 
the preceding October, plus or minus auditor's adjustments. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
124.214, subdivision 3, is amended to read: 
    Subd. 3.  [EXCESS TAX INCREMENT.] If a return of excess tax 
increment is made to a school district pursuant to section 
469.176, subdivision 2, or upon decertification of a tax 
increment district, the school district's aid and levy 
limitations must be adjusted for the fiscal year in which the 
excess tax increment is paid under the provisions of this 
subdivision. 
    (a) An amount must be subtracted from the school district's 
aid for the current fiscal year equal to the product of: 
    (1) the amount of the payment of excess tax increment to 
the school district, times 
    (2) the ratio of: 
    (A) the sum of the amounts of the school district's 
certified levy for the fiscal year in which the excess tax 
increment is paid according to the following: 
    (i) section 124A.23, if the district receives general 
education aid according to that section, or section 124B.20, if 
the education district of which the district is a member 
receives general education aid according to that section; 
    (ii) section 275.125, subdivisions 5 and 5c, if the school 
district receives transportation aid according to section 
124.225; 
    (iii) section 124.243, if the district receives capital 
expenditure facilities aid according to that section; 
     (iv) section 124.244, if the district receives capital 
expenditure equipment aid according to that section; 
    (v) section 124.83, if the district receives health and 
safety aid according to that section; 
    (vi) sections 124.2713, 124.2714, and 124.2715, if the 
district receives aid for community education programs according 
to any of those sections; and 
    (vii) section 275.125, subdivision 8b, if the district 
receives early childhood family education aid according to 
section 124.2711; 
    (viii) section 124.321, subdivision 3, if the district 
receives special education levy equalization aid according to 
that section; 
    (ix) section 124A.03, subdivision 1g, if the district 
receives referendum equalization aid according to that section; 
and 
    (x) section 124A.22, subdivision 4a, if the district 
receives training and experience aid according to that section; 
    (B) to the total amount of the school district's certified 
levy for the fiscal year, plus or minus auditor's adjustments. 
    (b) An amount must be subtracted from the school district's 
levy limitation for the next levy certified equal to the 
difference between: 
    (1) the amount of the distribution of excess increment, and 
    (2) the amount subtracted from aid pursuant to clause (a). 
    If the aid and levy reductions required by this subdivision 
cannot be made to the aid for the fiscal year specified or to 
the levy specified, the reductions must be made from aid for 
subsequent fiscal years, and from subsequent levies.  The school 
district shall use the payment of excess tax increment to 
replace the aid and levy revenue reduced under this subdivision. 
    This subdivision applies only to the total amount of excess 
increments received by a school district for a calendar year 
that exceeds $25,000. 
    Sec. 13.  Minnesota Statutes 1990, section 124A.22, is 
amended by adding a subdivision to read: 
    Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
revenue, a district may levy an amount not more than the product 
of its supplemental revenue for the school year times the lesser 
of one or the ratio of its general education levy to its general 
education revenue, excluding training and experience revenue and 
supplemental revenue, for the same year. 
    Sec. 14.  Minnesota Statutes 1990, section 124A.22, is 
amended by adding a subdivision to read: 
    Subd. 8b.  [SUPPLEMENTAL AID.] A district's supplemental 
aid equals its supplemental revenue minus its supplemental levy 
times the ratio of the actual amount levied to the permitted 
levy. 
    Sec. 15.  Minnesota Statutes 1990, section 124A.23, 
subdivision 3, is amended to read: 
    Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
FORMULA.] If the amount of the general education levy for a 
district exceeds the district's general education revenue, 
excluding training and experience revenue and supplemental 
revenue, the amount of the general education levy shall be 
limited to the following: 
    (1) the district's general education revenue, excluding 
training and experience revenue and supplemental revenue; plus 
    (2) the amount of the aid reduction for the same school 
year according to section 124A.24; minus 
    (3) payments made for the same school year according to 
section 124A.035, subdivision 4. 
    For purposes of statutory cross-reference, a levy made 
according to this subdivision shall be construed to be the levy 
made according to subdivision 2. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
124A.23, subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
education aid is the sum of the following amounts:  
    (1) the product of (i) the difference between the general 
education revenue, excluding training and experience revenue and 
supplemental revenue, and the general education levy, times (ii) 
the ratio of the actual amount levied to the permitted levy; 
    (2) the product of (i) the difference between the 
supplemental revenue and the supplemental levy, times (ii) the 
ratio of the actual amount levied to the permitted levy training 
and experience aid according to section 124A.22, subdivision 4b; 
    (3) supplemental aid according to section 11; 
    (4) shared time aid according to section 124A.02, 
subdivision 21; and 
    (4) (5) referendum aid according to section 124A.03. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
124A.24, is amended to read: 
    124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
    If a district's general education levy is determined 
according to section 124A.23, subdivision 3, an amount must be 
deducted from state aid authorized in this chapter and chapters 
124 and 124B, receivable for the same school year, and from 
other state payments receivable for the same school year 
authorized in chapter 273.  The aid in section 124.646 must not 
be reduced. 
    The amount of the deduction equals the difference between: 
    (1) the general education tax rate, according to section 
124A.23, times the district's adjusted net tax capacity used to 
determine the general education aid for the same school year; 
and 
    (2) the district's general education revenue, excluding 
training and experience revenue and supplemental revenue, for 
the same school year, according to section 124A.22. 
    However, for fiscal year 1992, the amount of the deduction 
shall be four-sixths of the difference between clauses (1) and 
(2); and for fiscal year 1993, the amount of the deduction shall 
be five-sixths of the difference between clauses (1) and (2).  
    Sec. 18.  Minnesota Statutes 1990, section 124A.26, 
subdivision 2, is amended to read: 
    Subd. 2.  [LEVY REDUCTION.] If a district's general 
education revenue is reduced, the general education levy shall 
be reduced by the following amount: 
    (1) the reduction specified in subdivision 1, times 
    (2) the lesser of one or the ratio of the district's 
general education levy to its general education revenue, 
excluding training and experience revenue and supplemental 
revenue. 
    Sec. 19.  Minnesota Statutes 1990, section 125.18, 
subdivision 1, is amended to read: 
    Subdivision 1.  A teacher who holds a license from the 
department, according to chapter 125 or 136C, and a contract for 
employment in by a public school district or other organization 
providing public education may be granted a sabbatical leave by 
the board employing such person the teacher under rules 
promulgated by such the board. 
    Sec. 20.  Minnesota Statutes 1990, section 136D.27, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROHIBITED LEVIES.] Notwithstanding section 
136D.24 or any other law to the contrary, the joint school board 
may not certify, either itself, to any participating district, 
or to any cooperating school district, any levies for any 
purpose, except the levies authorized by subdivision 1, sections 
124.2727, 124.83, subdivision 4, 127.05, 275.125, subdivisions 
8c and 14a, 275.48, and 475.61, and for the joint school board's 
obligations under section 268.06, subdivision 25, for which a 
levy is authorized by section 275.125, subdivision 4. 
    Sec. 21.  Minnesota Statutes 1990, section 136D.74, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [PROHIBITED LEVIES.] Notwithstanding 
subdivisions 2 and subdivision 4, section 136D.73, subdivision 
3, or any other law to the contrary, the intermediate school 
board may not certify, either itself, to any participating 
district, or to any cooperating school district, any levies for 
any purpose, except the levies authorized by subdivision 1, 
sections 124.2727, 124.83, subdivision 4, 127.05, 275.125, 
subdivisions 8c and 14a, 275.48, and 475.61, and for the 
intermediate school board's obligations under section 268.06, 
subdivision 25, for which a levy is authorized by section 
275.125, subdivision 4. 
    Sec. 22.  Minnesota Statutes 1990, section 136D.87, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROHIBITED LEVIES.] Notwithstanding section 
136D.84 or any other law to the contrary, the joint school board 
may not certify, either itself, to any participating district, 
or to any cooperating school district, any levies for any 
purpose, except the levies authorized by subdivision 1, sections 
124.2727, 124.83, subdivision 4, 127.05, 275.125, subdivisions 
8c and 14a, 275.48, and 475.61, and for the joint school board's 
obligations under section 268.06, subdivision 25, for which a 
levy is authorized by section 275.125, subdivision 4. 
    Sec. 23.  Minnesota Statutes 1990, section 205A.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELECTION, CONDUCT.] A school district election 
must be by secret ballot and must be held and the returns made 
in the manner provided for the state general election, as far as 
practicable.  The vote totals from an absentee ballot board 
established pursuant to section 203B.13 may be tabulated and 
reported by the school district as a whole rather than by 
precinct.  For school district elections not held in conjunction 
with a statewide election, the school board shall appoint 
election judges as provided in section 204B.21, subdivision 2.  
The provisions of sections 204B.19, subdivision 5; 204C.15; 
204C.19; 206.63; 206.64, subdivision 2; 206.74, subdivision 3; 
206.75; and 206.83; and 206.86, subdivision 2, relating to party 
balance in appointment of judges and to duties to be performed 
by judges of different major political parties do not apply to 
school district elections not held in conjunction with a 
statewide election. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
275.065, subdivision 1, is amended to read: 
    Subdivision 1.  [PROPOSED LEVY.] Notwithstanding any law or 
charter to the contrary, on or before September 1, each taxing 
authority, other than a school district, shall adopt a proposed 
budget and each taxing authority shall certify to the county 
auditor the proposed or, in the case of a town, the final 
property tax levy for taxes payable in the following year.  If 
the board of estimate and taxation or any similar board that 
establishes maximum tax levies for taxing jurisdictions within a 
first class city certifies the maximum property tax levies for 
funds under its jurisdiction by charter to the county auditor by 
September 1, the city shall be deemed to have certified its 
levies for those taxing jurisdictions.  For purposes of this 
section, "taxing authority" includes all home rule and statutory 
cities, towns, counties, school districts, and special taxing 
districts.  The commissioner of revenue shall determine what 
constitutes a special taxing district for purposes of this 
section.  Intermediate school districts that levy a tax under 
chapter 124 or 136D, joint powers boards established under 
sections 124.491 to 124.495, and common school districts No. 
323, Franconia, and No. 815, Prinsburg, are special taxing 
districts for purposes of this section. 
    Sec. 25.  Minnesota Statutes 1990, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 23.  [LEVY ADJUSTMENT FOR ENACTED CHANGES.] Whenever 
a change enacted in law changes the levy authority for a school 
district or an intermediate school district for a fiscal year 
after the levy for that fiscal year has been certified by the 
district under section 275.07, the department of education shall 
adjust the next levy certified by the district by the amount of 
the change in levy authority for that fiscal year resulting from 
the change.  Notwithstanding section 121.904, the entire amount 
for fiscal year 1992 and 50 percent for fiscal years thereafter 
of the levy adjustment must be recognized as revenue in the 
fiscal year the levy is certified, if sufficient levy resources 
are available under generally accepted accounting principles in 
the district fund where the adjustment is to occur.  School 
districts that do not have sufficient levy resources available 
in the fund where the adjustment is to occur shall recognize in 
the fiscal year the levy is certified an amount equal to the 
levy resources available.  The remaining adjustment amount shall 
be recognized as revenue in the fiscal year after the levy is 
certified. 
    Sec. 26.  Laws 1991, chapter 265, article 7, section 37, 
subdivision 6, is amended to read: 
    Subd. 6.  [CONTRACT FUNDS.] Any unexpended Contract funds 
awarded to a school, school district, or group of districts in 
one fiscal year do not cancel but are available in the next 
fiscal year shall be used only for outcome-based education 
purposes and activities specified in the contract.  Any of the 
contract funds unexpended in the first fiscal year shall be 
available to the award recipient in the second fiscal year for 
the same purposes and activities. 
    Sec. 27.  Laws 1991, chapter 265, article 9, section 76, is 
amended to read: 
    Sec. 76.  [EFFECTIVE DATE.] 
    Section 123.38, subdivision 2b, is effective the day 
following final enactment and applies to the 1990-1991 school 
year and thereafter.  Sections 123.33, subdivision 1; and 
123.3514, subdivision 4 are effective the day following final 
enactment and apply to 1991-1992 and later school years. 
    Sections 122.895; 123.35, subdivision 20; 125.09, 
subdivision 4; 128C.01, subdivision 5; 214.10, subdivision 9 are 
effective the day following final enactment.  Section 122.41 is 
effective July 1, 1992.  Section 120.062, subdivision 8a, 
paragraphs (b) and (c), are effective retroactively to December 
1, 1990.  Sections 123.3514, subdivision 4; and Section 124.17, 
subdivision 1c are is effective retroactively to July 1, 1990.  
Section 281.17 is effective for taxes deemed delinquent after 
December 31, 1991.  Sections 125.12, subdivisions 3a and 4a; and 
125.17, subdivisions 2a and 3a are effective July 1, 1993.  
Sections 121.931, subdivisions 6a, 7, and 8; 121.932, 
subdivisions 2, 3, and 5; 121.933, subdivision 1; 121.934, 
subdivision 7; 121.935, subdivisions 1, 4, 6, and 8; 121.936, 
subdivisions 1, 2, and 4; and 121.937, subdivision 1, are 
effective July 1, 1993.  
    Under Minnesota Statutes, section 123.34, subdivision 9, a 
contract executed before July 1, 1991, between a superintendent 
and a school board that continues in effect beyond June 30, 
1991, shall continue until terminated under those terms that 
were lawful at the time the contract was executed. 
    Sections 15 to 30 are effective July 1, 1993.  Section 74 
is effective the day following final enactment. 
    Sec. 28.  [REENACTMENT.] 
    Minnesota Statutes 1990, section 120.105 repealed by Laws 
1991, chapter 265, article 9, section 75 is reenacted and 
remains in effect without interruption. 
    Sec. 29.  [INSTRUCTION TO REVISOR.] 
    In addition to the recodification of subdivisions of 
Minnesota Statutes, section 275.125, required by Laws 1991, 
chapter 130, section 37, the revisor of statutes, in the 1992 
edition of Minnesota Statutes, shall recodify in the education 
code all subdivisions of Minnesota Statutes, section 275.125, 
added by any chapter of Laws 1991 or Laws 1992, notwithstanding 
any law to the contrary. 
    Sec. 30.  [REPEALER.] 
    (a) Minnesota Statutes 1991 Supplement, section 123.35, 
subdivision 19, is repealed effective July 1, 1993.  
    (b) Minnesota Statutes 1991 Supplement, section 124.646, 
subdivision 2, is repealed effective the day following final 
enactment. 
    (c) Minnesota Statutes 1990, section 124A.23, subdivision 
2a; and Laws 1991, chapter 265, articles 2, section 18; 3, 
section 36; 5, section 17; and 6, section 60, are repealed 
effective July 1, 1992. 
    Sec. 31.  [EFFECTIVE DATE.] 
    Section 8 is effective July 1, 1993.  Section 25 is 
effective retroactively to May 1, 1991, and applies beginning 
with adjustments to the 1991 payable 1992 levy for fiscal year 
1992. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 7:43 a.m.

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