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1990 Minnesota Session Laws

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                         Laws of Minnesota 1990 

                        CHAPTER 562-H.F.No. 2200 
           An act relating to education; establishing, modifying, 
          and clarifying elementary, secondary and related 
          education programs and services, such as, general 
          education, transportation, special programs, drug 
          prevention and other community programs, facilities, 
          programs of cooperation, other aids and levies, rural 
          health care, and the department of education and other 
          education related state entities; providing for 
          technical tax rate changes; authorizing tax levies; 
          appropriating money; amending Minnesota Statutes 1988, 
          sections 120.062, subdivision 9, and by adding a 
          subdivision; 120.73, subdivision 1; 121.148; 121.15, 
          subdivisions 1 and 7; 121.88, subdivision 6; 121.882, 
          subdivision 9; 121.908, subdivision 3; 121.917, 
          subdivision 4; 121.931, subdivision 6, and by adding a 
          subdivision; 121.935, subdivisions 2, 5, and by adding 
          a subdivision; 121.936, subdivisions 2 and 3; 122.23, 
          subdivisions 9, 11, 12, and 13; 122.535, by adding a 
          subdivision; 122.94, subdivision 5; 123.33, 
          subdivision 1; 123.34, subdivisions 9 and 10; 
          123.3514, subdivisions 6 and 6b; 123.36, subdivisions 
          5 and 10; 123.37, subdivision 1; 123.38, subdivision 
          2b; 123.39, subdivisions 1, 6, and by adding a 
          subdivision; 123.58, subdivision 2; 123.9361; 123.947; 
          124.17, subdivision 1b; 124.195, subdivision 10, and 
          by adding subdivisions; 124.261; 124.39, subdivisions 
          3 and 4; 124.494, by adding a subdivision; 124A.036, 
          subdivision 5; 125.12, subdivision 1; 125.185, by 
          adding a subdivision; 125.231, subdivision 6; 125.60, 
          subdivision 2; 126.12, subdivision 2; 126.70, 
          subdivision 2a; 141.25, subdivisions 7 and 9; 275.125, 
          subdivision 4, and by adding subdivisions; 475.51, 
          subdivision 4; Minnesota Statutes 1989 Supplement, 
          sections 6.65; 10A.01, subdivision 18; 119.04, 
          subdivision 3; 121.111, subdivisions 1 and 2; 121.15, 
          subdivision 2; 121.612, subdivisions 3 and 5; 121.912, 
          subdivisions 1 and 1b; 122.241, subdivision 2; 
          122.243, subdivision 2; 122.91, subdivisions 1 and 5; 
          122.94, subdivision 6; 122.945, subdivision 2; 123.33, 
          subdivision 7; 123.58, subdivision 9; 124.10, 
          subdivision 2; 124.155, subdivision 2; 124.19, 
          subdivision 7; 124.223; 124.225, subdivisions 1, 3a, 
          and 8k; 124.243, subdivision 2; 124.26, subdivision 8; 
          124.2713, subdivision 6; 124.2721; 124.2725, 
          subdivisions 3, 4, 5, 8, and by adding a subdivision; 
          124.38, subdivision 7; 124.573, subdivision 2d; 
          124.575, subdivision 3; 124.6472, subdivision 2; 
          124.83, subdivision 6; 124.86, subdivisions 1 and 2; 
          124.90, by adding a subdivision; 124A.22, subdivision 
          2a; 126.22, subdivisions 2, 3, and 8; 126.23; 128B.03, 
          subdivision 4; 129.128; 129C.10, by adding a 
          subdivision; 141.35; 275.125, subdivisions 5c, 5e, 6h, 
          6i, 8b, 9a, 9b, 9c, and 11d; 298.28, subdivision 4; 
          326.03, subdivision 2; 465.71; 475.62; Minnesota 
          Statutes Second 1989 Supplement, sections 121.904, 
          subdivision 4a; 124.2442, subdivision 1; 124.83, 
          subdivision 4; 124A.03, subdivision 2; 124A.23, 
          subdivision 1; 124A.26, subdivision 1; and 275.125, 
          subdivision 18; Laws 1984, chapter 463, article 6, 
          section 15, subdivision 2; Laws 1989, chapter 202, 
          section 6, subdivisions 7 and 8; Laws 1989, chapter 
          329, article 4, section 19, subdivisions 2 and 5; 
          article 6, section 53, subdivisions 3 and 6; article 
          7, section 24, subdivision 6; article 11, sections 15, 
          subdivisions 2 and 12; 16, subdivision 2; and 17, 
          subdivision 2; article 12, section 11; proposing 
          coding for new law in Minnesota Statutes, chapters 
          121, 122, 124, 125, 126, 129B, and 237; proposing 
          coding for new law as Minnesota Statutes, chapter 
          124B; repealing Minnesota Statutes 1988, sections 
          124.43, subdivisions 2, 3, 3a, 3b, 4, 5, and 6; 
          Minnesota Statutes 1989 Supplement, section 124.43, 
          subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                           GENERAL EDUCATION
    Section 1.  Minnesota Statutes 1988, section 124.17, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [AFDC PUPIL UNITS.] In a district in which the 
number of pupils from families receiving aid to families with 
dependent children on October 1 of the previous school year 
equals six percent or more of the actual pupil units in the 
district for the same current school year, as computed in 
subdivision 1, each such pupil shall be counted as an additional 
one-tenth of a pupil unit for each percent of concentration over 
five percent of such pupils in the district.  The percent of 
concentration shall be rounded down to the nearest whole 
percent.  In a district in which the percent of concentration is 
less than six, additional pupil units may not be counted for 
such pupils.  A pupil may not be counted as more than .6 
additional pupil unit under this subdivision.  The weighting in 
this subdivision is in addition to the weighting provided in 
subdivision 1.  
    Sec. 2.  Minnesota Statutes 1988, section 124.195, is 
amended by adding a subdivision to read: 
    Subd. 12.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
CHANGE.] (a) The department of education shall reduce general 
education aid or any other aid paid in a fiscal year to school 
districts, intermediate school districts, education districts, 
education cooperative service units, special education 
cooperatives, secondary vocational cooperatives, regional 
management information centers, or another district or unit 
providing elementary or secondary education services.  The 
reduction shall equal the following percent of salaries paid in 
a fiscal year by the entity to members of the teachers 
retirement association established in chapter 354.  However, 
salaries paid to members of the association who are employed by 
a technical college shall be excluded from this calculation: 
    (1) in fiscal year 1991, 0.84 percent, 
    (2) in fiscal year 1992 and later years, the greater of 
    (i) zero, or 
    (ii) 4.48 percent less the additional employer contribution 
rate established under section 354.42, subdivision 5.  
    (b) In fiscal year 1991, this reduction is estimated to 
equal $14,260,000. 
    Sec. 3.  Minnesota Statutes Second 1989 Supplement, section 
124A.03, subdivision 2, is amended to read: 
    Subd. 2.  [REFERENDUM LEVY.] (a) The levy authorized by 
section 124A.23, subdivision 2, may be increased in the amount 
approved by the voters of the district at a referendum called 
for the purpose.  The referendum may be called by the school 
board or shall be called by the school board upon written 
petition of qualified voters of the district.  The referendum 
must be held on the first Tuesday after the first Monday in 
November.  The ballot shall state the maximum amount of the 
increased levy as a percentage of net tax capacity, the amount 
that will be raised by that tax capacity rate in the first year 
it is to be levied, and that the tax capacity rate shall be used 
to finance school operations.  The ballot shall designate the 
specific number of years for which the referendum authorization 
shall apply.  The ballot may contain a textual portion with the 
information required in this subdivision and a question stating 
substantially the following:  
    "Shall the increase in the levy proposed by (petition to) 
the board of ........., School District No. .., be approved?"  
    If approved, the amount provided by the approved tax 
capacity rate applied to the net tax capacity 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. 
     (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 election referendum to each taxpayer at the 
address listed on the school district's current year's 
assessment roll, a notice of the referendum and the proposed 
levy 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 increase in annual dollars and annual 
percentage for typical residential homesteads, agricultural 
homesteads, apartments, and commercial-industrial property 
within the school district. 
     The notice must include the following statement:  "In 1989 
the legislature reduced property taxes for education by 
increasing the state share of funding for education.  However, 
state aid for cities and townships was reduced by a 
corresponding amount.  As a result, property taxes for cities 
and townships may increase.  Passage of this referendum will 
result in an increase in your property taxes." 
    (c) A referendum on the question of revoking or reducing 
the increased levy amount authorized pursuant to paragraph (a) 
may be called by the school board and shall be called by the 
school board upon the written petition of qualified voters of 
the district.  A levy approved by the voters of the district 
pursuant to paragraph (a) must be made at least once before it 
is subject to a referendum on its revocation or reduction for 
subsequent years.  Only one revocation or reduction election 
referendum may be held to revoke or reduce a levy 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 30 15 
days after the district holds a referendum pursuant to this 
clause results of the referendum have been certified by the 
school board, or in the case of a recount, the certification of 
the results of the recount by the canvassing board, the district 
shall notify the commissioner of education of the results of the 
referendum. 
    Sec. 4.  Minnesota Statutes Second 1989 Supplement, section 
124A.23, subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL EDUCATION TAX CAPACITY RATE.] The 
general education tax capacity rate for fiscal year 1991 is 26.3 
percent.  Beginning in 1990, the commissioner of revenue shall 
establish the general education tax capacity 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 capacity rate shall be 
the rate that raises $845,000,000 for fiscal year 1992 and 
$887,000,000 for fiscal year 1993 and subsequent fiscal years.  
The general education tax capacity 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 capacity rate has been certified.  
    Sec. 5.  Minnesota Statutes Second 1989 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 second prior school year exceeds $600 times the actual 
fund balance pupil units in the prior year.  For purposes of 
this subdivision only, fund balance pupil units means the number 
of pupil units in average daily membership enrolled in the 
district, including shared time pupils, according to section 
124A.02, subdivision 20, and excluding 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. 6.  [APPROPRIATION CANCELLATION.] 
    Any excess in the general education appropriation for 
fiscal years 1990 and 1991 shall cancel to the general fund.  
Any amount canceled shall not be included in the transfer of 
excess appropriations under Minnesota Statutes, section 124.14, 
subdivision 7. 
    Sec. 7.  [SCHOOL DISTRICT LEVY REFERENDUM.] 
    Notwithstanding Minnesota Statutes, section 124A.03, 
subdivision 2, independent school districts Nos. 118, Remer, 
622, North St. Paul-Maplewood, and 656, Faribault, may conduct 
one levy referendum authorized by that section before November 
1990.  Only one levy referendum may be conducted in 1990 by each 
district. 
    Sec. 8.  [INSTRUCTIONS TO THE DEPARTMENT.] 
    The department of education shall adjust levies certified 
in 1990 for the change in the fund balance pupil units in 
section 5. 
    Sec. 9.  [EFFECTIVE DATE.] 
    Section 6 is effective the day following final enactment.  
Section 7 is effective the day after the governing bodies of 
independent school districts Nos. 118, Remer, 622, North St. 
Paul-Maplewood, and 656, Faribault, comply with Minnesota 
Statutes, section 645.021, subdivision 3. 

                               ARTICLE 2 

                             TRANSPORTATION 
    Section 1.  Minnesota Statutes 1988, section 120.73, 
subdivision 1, is amended to read: 
    Subdivision 1.  A school board is authorized to require 
payment of fees in the following areas: 
    (a) In any program where the resultant product, in excess 
of minimum requirements and at the pupil's option, becomes the 
personal property of the pupil; 
    (b) Admission fees or charges for extra curricular 
activities, where attendance is optional; 
    (c) A security deposit for the return of materials, 
supplies, or equipment; 
    (d) Personal physical education and athletic equipment and 
apparel, although any pupil may personally provide it if it 
meets reasonable requirements and standards relating to health 
and safety established by the school board; 
    (e) Items of personal use or products which a student has 
an option to purchase such as student publications, class rings, 
annuals, and graduation announcements; 
    (f) Fees specifically permitted by any other statute, 
including but not limited to section 171.04, clause (1); 
    (g) Field trips considered supplementary to a district 
educational program; 
    (h) Any authorized voluntary student health and accident 
benefit plan; 
    (i) For the use of musical instruments owned or rented by 
the district, a reasonable rental fee not to exceed either the 
rental cost to the district or the annual depreciation plus the 
actual annual maintenance cost for each instrument; 
    (j) Transportation of pupils to and from extra curricular 
activities conducted at locations other than school, where 
attendance is optional; 
    (k) Transportation of pupils to and from school for which 
aid is not authorized under section 124.223, clause 
(1) subdivision 1, and for which levy is not authorized under 
section 275.125, subdivision 5e, if a district charging fees for 
transportation of pupils establishes guidelines for that 
transportation to ensure that no pupil is denied transportation 
solely because of inability to pay; 
    (l) Motorcycle classroom education courses conducted 
outside of regular school hours; provided the charge shall not 
exceed the actual cost of these courses to the school district. 
    Sec. 2.  Minnesota Statutes 1988, section 123.39, 
subdivision 1, is amended to read: 
    Subdivision 1.  The board may provide for the 
transportation of pupils to and from school, and for any other 
purpose for which aid is authorized under section 124.223 or for 
which levies are authorized under section 275.125.  The board 
may also provide for the transportation of pupils to schools in 
other districts for grades and departments not maintained in the 
district, including high school, at the expense of the district, 
when funds are available therefor and if agreeable to the 
district to which it is proposed to transport the pupils, for 
the whole or a part of the school year, as it may deem 
advisable, and subject to its rules.  Every driver shall possess 
all the qualifications required by the rules of the state board 
of education.  In any school district, the board shall arrange 
for the attendance of all pupils living two miles or more from 
the school through suitable provision for transportation or 
through the boarding and rooming of the pupils who may be more 
economically and conveniently provided for by that means.  The 
board shall provide transportation to and from the home of a 
handicapped child not yet enrolled in kindergarten when special 
instruction and services under section 120.17 are provided in a 
location other than in the child's home.  When transportation is 
provided, scheduling of routes, establishment of the location of 
bus stops, manner and method of transportation, control and 
discipline of school children and any other matter relating 
thereto shall be within the sole discretion, control, and 
management of the school board.  The district may provide for 
the transportation of pupils or expend a reasonable amount for 
room and board of pupils whose attendance at school can more 
economically and conveniently be provided for by that means or 
who attend school in a building rented or leased by a district 
within the confines of an adjacent district. 
     Sec. 3.  Minnesota Statutes 1988, section 123.39, is 
amended by adding a subdivision to read: 
    Subd. 8e.  School districts may provide bus transportation 
along school bus routes established to provide nonregular 
transportation as defined in section 124.225, subdivision 1, 
paragraph (e)(2)(ii), when space is available, for pupils 
attending programs at an area learning center.  The 
transportation is only permitted between schools and if it does 
not increase the district's expenditures for transportation.  
The cost of these services shall be considered part of the 
authorized cost for nonregular transportation for the purpose of 
section 124.225. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
124.223, is amended to read: 
    124.223 [TRANSPORTATION AID AUTHORIZATION.] 
    School transportation and related services for which state 
transportation aid is authorized are listed in this section. 
    (1) Subdivision 1.  [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] 
(a) State transportation aid is authorized for transportation or 
board of resident elementary pupils who reside one mile or more 
from the public schools which they could attend; transportation 
or board of resident secondary pupils who reside two miles or 
more from the public schools which they could attend; 
transportation to and from schools the resident pupils attend 
according to a program approved by the commissioner of 
education, or between the schools the resident pupils attend for 
instructional classes; transportation of resident elementary 
pupils who reside one mile or more from a nonpublic school 
actually attended; transportation of resident secondary pupils 
who reside two miles or more from a nonpublic school actually 
attended; but with respect to transportation of pupils to 
nonpublic schools actually attended, only to the extent 
permitted by sections 123.76 to 123.79; transportation of a 
pupil who is a custodial parent and that pupil's child between 
the pupil's home and the child care provider and between the 
provider and the school, if the home and provider are within the 
attendance area of the school. 
    (b) For the purposes of clause (1) this subdivision, a 
district may designate a licensed day care facility, respite 
care facility, the residence of a relative, or the residence of 
a person chosen by the pupil's parent or guardian as the home of 
a pupil for part or all of the day, if requested by the pupil's 
parent or guardian and if that facility or residence is within 
the attendance area of the school the pupil attends. 
    (c) State transportation aid is authorized for 
transportation to and from school of an elementary pupil who 
moves during the school year within an area designated by the 
district as a mobility zone, but only for the remainder of the 
school year.  The attendance areas of schools in a mobility zone 
must be contiguous.  To be in a mobility zone, a school must 
meet both of the following requirements: 
    (i) more than 50 percent of the pupils enrolled in the 
school are eligible for free or reduced school lunch; and 
    (ii) the pupil withdrawal rate for the last year is more 
than 12 percent. 
    (d) A pupil withdrawal rate is determined by dividing: 
    (i) the sum of the number of pupils who withdraw from the 
school, during the school year, and the number of pupils 
enrolled in the school as a result of transportation provided 
under this paragraph, by 
    (ii) the number of pupils enrolled in the school. 
    (e) The district may establish eligibility requirements for 
individual pupils to receive transportation in the mobility zone.
    (2) Subd. 2.  [OUTSIDE DISTRICT.] State transportation aid 
is authorized for transportation to and from or board and 
lodging in another district, of resident pupils of a district 
without a secondary school.  The pupils may attend a classified 
secondary school in another district and shall receive board and 
lodging in or transportation to and from a district having a 
classified secondary school at the expense of the district of 
the pupil's residence. 
    (3) Subd. 3.  [SECONDARY VOCATIONAL CENTERS.] State 
transportation aid is authorized for transportation to and from 
a state board approved secondary vocational center for secondary 
vocational classes for resident pupils of any of the districts 
who are members of or participating in programs at that center. 
    (4) Subd. 4.  [HANDICAPPED.] State transportation aid is 
authorized for transportation or board and lodging of a 
handicapped pupil when that pupil cannot be transported on a 
regular school bus, the conveying of handicapped pupils between 
home or a respite care facility and school and within the school 
plant, necessary transportation of handicapped pupils from home 
or from school to other buildings, including centers such as 
developmental achievement centers, hospitals and treatment 
centers where special instruction or services required by 
section 120.17 are provided, within or outside the district 
where services are provided, and necessary transportation for 
resident handicapped pupils required by section 120.17, 
subdivision 4a.  Transportation of handicapped pupils between 
home or a respite care facility and school shall not be subject 
to any distance requirement for children not yet enrolled in 
kindergarten or to the requirement in clause (1) subdivision 1 
that elementary pupils reside at least one mile from school and 
secondary pupils reside at least two miles from school in order 
for the transportation to qualify for aid. 
    (5) Subd. 5.  [BOARD AND LODGING; NONRESIDENT HANDICAPPED.] 
State transportation aid is authorized for, when necessary, 
board and lodging for nonresident handicapped pupils in a 
district maintaining special classes. 
    (6) Subd. 6.  [SHARED TIME.] State transportation aid is 
authorized for transportation from one educational facility to 
another within the district for resident pupils enrolled on a 
shared time basis in educational programs, and necessary 
transportation required by section 120.17, subdivision 9, for 
resident handicapped pupils who are provided special instruction 
and services on a shared time basis. 
    (7) Subd. 7.  [FARIBAULT STATE ACADEMIES.] State 
transportation aid is authorized for transportation for 
residents to and from the Minnesota state academy for the deaf 
or the Minnesota state academy for the blind. 
    (8) Subd. 8.  [SUMMER INSTRUCTIONAL PROGRAMS.] State 
transportation aid is authorized for services described in 
clauses (1) to (7), (9), and (10) subdivisions 1 to 7, 9, and 10 
when provided in conjunction with a summer program that meets 
the requirements of section 124A.27, subdivision 9. 
    (9) Subd. 9.  [COOPERATIVE ACADEMIC AND VOCATIONAL.] State 
transportation aid is authorized for transportation to, from or 
between educational facilities located in any of two or more 
school districts jointly offering academic classes or secondary 
vocational classes not provided at a secondary vocational center 
for resident pupils of any of these districts. 
    (10) Subd. 10.  [NONPUBLIC SUPPORT SERVICES.] State 
transportation aid is authorized for necessary transportation 
within district boundaries between a nonpublic school and a 
public school or a neutral site for nonpublic school pupils who 
are provided pupil support services pursuant to section 123.935. 
    Sec. 5.  Minnesota Statutes 1989 Supplement, section 
124.225, subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the terms defined in this subdivision have the meanings 
given to them. 
    (a) "FTE" means a transported full-time equivalent pupil 
whose transportation is authorized for aid purposes by section 
124.223. 
    (b) "Authorized cost for regular transportation" means the 
sum of: 
     (1) all expenditures for transportation in the regular 
category, as defined in paragraph (e), clause (1), for which aid 
is authorized in section 124.223, plus 
     (2) an amount equal to one year's depreciation on the 
district's school bus fleet and mobile units computed on a 
straight line basis at the rate of 12-1/2 percent per year of 
the cost of the fleet, plus 
     (3) an amount equal to one year's depreciation on district 
school buses reconditioned by the department of corrections 
computed on a straight line basis at the rate of 33-1/3 percent 
per year of the cost to the district of the reconditioning, plus 
     (4) an amount equal to one year's depreciation on the 
district's type three school buses, as defined in section 
169.44, subdivision 15, which were purchased after July 1, 1982, 
for authorized transportation of pupils, with the prior approval 
of the commissioner, computed on a straight line basis at the 
rate of 20 percent per year of the cost of the type three school 
buses.  
    (c) "Adjusted authorized predicted cost per FTE" means the 
authorized cost predicted by a multiple regression formula 
determined by the department of education and adjusted pursuant 
to subdivision 7a. 
    (d) "Regular transportation allowance" for the 1989-1990 
school year means the adjusted authorized predicted cost per 
FTE, inflated pursuant to subdivision 7b.  
    (e) For purposes of this section, "transportation category" 
means a category of transportation service provided to pupils:  
    (1) regular transportation is transportation services 
provided during the regular school year under section 124.223, 
clauses (1) subdivisions 1 and (2) 2, excluding the following 
transportation services provided under section 124.223, clause 
(1) subdivision 1:  transportation between schools; noon 
transportation to and from school for kindergarten pupils 
attending half-day sessions; late transportation home from 
school for pupils involved in after school activities; 
transportation of pupils to and from schools located outside 
their normal attendance areas under the provisions of a plan for 
desegregation mandated by the state board of education or under 
court order; and transportation of elementary pupils to and from 
school within a mobility zone; 
    (2) nonregular transportation is transportation services 
provided under section 124.223, clause (1) subdivision 1, that 
are excluded from the regular category, and transportation 
services provided under section 124.223, clauses (3), (4), (5), 
(6), (7), (8), (9), and (10) subdivisions 3, 4, 5, 6, 7, 8, 9, 
and 10; 
    (3) excess transportation is transportation to and from 
school for secondary pupils residing at least one mile but less 
than two miles from the public school they could attend or from 
the nonpublic school actually attended, and transportation to 
and from school for pupils residing less than one mile from 
school who are transported because of extraordinary traffic, 
drug, or crime hazards; and 
    (4) desegregation transportation is transportation of 
pupils to and from schools located outside their normal 
attendance areas under a plan for desegregation mandated by the 
state board or under court order.  
    (f) "Mobile unit" means a vehicle or trailer designed to 
provide facilities for educational programs and services, 
including diagnostic testing, guidance and counseling services, 
and health services.  A mobile unit located off nonpublic school 
premises is a neutral site as defined in section 123.932, 
subdivision 9. 
    (g) "Current year" means the school year for which aid will 
be paid.  
    (h) "Base year" means the second school year preceding the 
school year for which aid will be paid.  
     (i) "Base cost" for the 1986-1987 and 1987-1988 base years 
means the ratio of: 
     (1) the sum of: 
     (i) the authorized cost in the base year for regular 
transportation as defined in clause (b), plus 
     (ii) the actual cost in the base year for excess 
transportation as defined in paragraph (e), clause (3), 
     (2) to the sum of: 
     (i) the number of FTE pupils transported in the regular 
category in the base year, plus 
     (ii) the number of FTE pupils transported in the excess 
category in the base year.  
     (j) Base cost for the 1988-1989 base year and later years 
means the ratio of: 
     (1) the sum of the authorized cost in the base year for 
regular transportation as defined in clause (b) plus the actual 
cost in the base year for excess transportation as defined in 
clause (e); 
     (2) to the sum of the number of weighted FTE pupils 
transported in the regular and excess categories in the base 
year. 
     (k) "Predicted base cost" for the 1986-1987 and 1987-1988 
base years means the base cost as predicted by subdivision 3. 
     (l) "Predicted base cost" for the 1988-1989 base year and 
later years means the predicted base cost as computed in 
subdivision 3a. 
     (m) "Pupil weighting factor" for the excess transportation 
category for a school district means the lesser of one, or the 
result of the following computation: 
     (1) divide the square mile area of the school district by 
the number of FTE pupils transported in the regular and excess 
categories in the base year; 
     (2) raise the result in clause (1) to the one-fifth power; 
     (3) divide four-tenths by the result in clause (2). 
     The pupil weighting factor for the regular transportation 
category is one. 
     (n) "Weighted FTE's"  means the number of FTE's in each 
transportation category multiplied by the pupil weighting factor 
for that category. 
     (o) "Sparsity index" for a school district means the 
greater of .005 or the ratio of the square mile area of the 
school district to the sum of the number of weighted FTE's 
transported by the district in the regular and excess categories 
in the base year. 
     (p) "Density index" for a school district means the greater 
of one or the result obtained by subtracting the product of the 
district's sparsity index times 20 from two. 
     (q) "Contract transportation index" for a school district 
means the greater of one or the result of the following 
computation: 
     (1) multiply the district's sparsity index by 20; 
    (2) select the greater lesser of one or the result in 
clause (1); 
     (3) multiply the district's percentage of regular FTE's 
transported using vehicles that are not owned by the school 
district by the result in clause (2). 
     (r) "Adjusted predicted base cost" for the 1988-1989 base 
year and after means the predicted base cost as computed in 
subdivision 3a as adjusted under subdivision 7a. 
     (s) "Regular transportation allowance" for the 1990-1991 
school year and after means the adjusted predicted base cost, 
inflated and adjusted under subdivision 7b. 
     (t) "Minimum regular transportation allowance" for the 
1990-1991 school year and after means the result of the 
following computation: 
     (1) compute the sum of the district's basic transportation 
aid for the 1989-1990 school year according to subdivision 8a 
and the district's excess transportation levy for the 1989-1990 
school year according to section 275.125, subdivision 5e, clause 
(a); 
    (2) divide the result in clause (1) by the sum of the 
number of weighted FTE's transported by the district in the 
regular and excess transportation categories in the 1989-1990 
school year; 
    (3) select the lesser of the result in clause (2) or the 
district's base cost for the 1989-1990 base year according to 
paragraph (j). 
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
124.225, subdivision 3a, is amended to read: 
    Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
base cost for the 1988-1989 base year and later years equals the 
result of the following computation:  
    (a) Multiply the transportation formula allowance by the 
district's sparsity index raised to the one-fourth power.  The 
transportation formula allowance is $406 for the 1988-1989 base 
year and $421 for the 1989-1990 base year.  
    (b) Multiply the result in clause (a) by the district's 
density index raised to the 35/100 power.  
    (c) Multiply the result in clause (b) by the district's 
contract transportation index raised to the 1/20 power.  
    Sec. 7.  Minnesota Statutes 1989 Supplement, section 
124.225, subdivision 8k, is amended to read: 
    Subd. 8k.  [CONTRACTED SERVICES AID REDUCTION.] (a) Each 
year, a district's transportation aid shall be reduced according 
to the provisions of this subdivision, if the district 
contracted for some or all of the transportation services 
provided in the regular category. 
    (b) For the 1988-1989 and 1989-1990 school years, the 
department of education shall compute this subtraction by 
conducting the multiple regression analysis specified in 
subdivision 3 and computing the district's aid under two 
circumstances, once including the coefficient of the factor 
specified in subdivision 4b, clause (3), and once excluding the 
coefficient of that factor.  The aid subtraction shall equal the 
difference between the district's aid computed under these two 
circumstances.  
    (c) For 1990-1991 and later school years, the department of 
education shall determine the subtraction by computing the 
district's regular transportation revenue, excluding revenue 
based on the minimum regular transportation allowance, under two 
circumstances, once including the factor specified in 
subdivision 3a, clause (c), and once excluding the factor.  The 
aid subtraction equals the difference between the district's 
revenue computed under the two circumstances. 
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 5e, is amended to read: 
    Subd. 5e.  [EXCESS TRANSPORTATION LEVY.] A school district 
may make a levy for excess transportation costs according to 
this subdivision.  The amount of the levy shall be the result of 
the following computation: 
    (a) Multiply the lesser of (1) the regular transportation 
allowance for the fiscal year to which the levy is attributable, 
or (2) the base cost for the fiscal year to which the levy is 
attributable, by the number of weighted FTE pupils transported 
in the excess category in the district in the current school 
year.  
    (b) Add to the result in paragraph (a) the actual cost in 
the fiscal year to which the levy is attributable of other 
related services that are necessary because of extraordinary 
traffic, drug, or crime hazards. 
    Sec. 9.  Minnesota Statutes 1988, section 275.125, is 
amended by adding a subdivision to read:  
    Subd. 5h.  [TRANSPORTATION LEVY FOR POST-SECONDARY 
AGREEMENTS.] A school district may levy an amount equal to the 
actual cost of transportation of secondary pupils enrolled in 
courses provided under an agreement authorized by section 
123.33, subdivision 7, to and from a pupil's home and a 
secondary school or a post-secondary institution, between a 
secondary school and a post-secondary institution, or between 
post-secondary institutions. 

                                ARTICLE 3

                            SPECIAL PROGRAMS
    Section 1.  Minnesota Statutes 1988, section 121.88, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROGRAMS FOR HANDICAPPED ADULTS WITH 
DISABILITIES.] A school board may offer, as part of a community 
education program, a program for handicapped adults with 
disabilities.  Boards are encouraged to offer programs 
cooperatively with other districts and organizations.  Programs 
may not be limited to district residents.  Programs may include: 
    (1) services enabling the adults to participate in 
community activities or community education classes; 
    (2) classes specifically for handicapped adults with 
disabilities; 
    (3) outreach activities to identify adults needing service; 
    (4) activities to increase public awareness of the roles of 
handicapped people with disabilities; 
    (5) activities to enhance the role of handicapped people 
with disabilities in the community; and 
    (6) other direct and indirect services and activities 
benefiting handicapped adults with disabilities.  
    Sec. 2.  Minnesota Statutes 1989 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 129B.56.  
    (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.  
    For a course having an independent study component, the 
pupil must complete coursework and receive credit for each 
course for which the aid is claimed.  
    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 prorated for a pupil receiving fewer than six credits in a 
year paid for each hour of teacher contact time and each hour of 
independent study time completed toward a credit necessary for 
graduation.  Average daily membership for a pupil shall equal 
the number of hours of teacher contact time and independent 
study time divided by 1,020 hours, but not more than one, except 
as otherwise provided in section 121.585.  
    For an alternative program having an independent study 
component, the commissioner shall require a description of the 
courses in the program, the kinds of independent study involved, 
the expected learning outcomes of the courses, and the means of 
measuring student performance against the expected outcomes. 
    A credit for a year in an approved alternative program 
shall, for the purposes of audit, be considered to be 170 hours 
of teacher contact time and independent study time. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
124.573, subdivision 2d, is amended to read: 
    Subd. 2d.  [ADMINISTRATION.] In making the computation in 
subdivision 2b, paragraph (a), clause (1), the salaries of the 
administrator and administrators, support service facilitator 
facilitators, vocational evaluators, supplemental support staff, 
and technical tutors must be apportioned among programs based on 
the number of full-time-equivalent instructors in each program. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
124.86, subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORIZATION.] Each year each American 
Indian-controlled contract or grant school authorized by the 
United States Code, title 25, section 450f, that is located on a 
reservation within the state is eligible to receive tribal 
contract school aid subject to the requirements in this 
subdivision. 
    (a) The school must plan, conduct, and administer an 
education program that complies with the requirements of 
chapters 120, 121, 122, 123, 124, 124A, 125, 126, 129, 129A, and 
129B. 
    (b) The school must comply with all other state statutes 
governing independent school districts.  
    (c) The state tribal contract or grant school aid must be 
used to supplement, and not to replace, the money for American 
Indian education programs provided by the federal government. 
    Sec. 5.  Minnesota Statutes 1989 Supplement, section 
124.86, subdivision 2, is amended to read: 
    Subd. 2.  [REVENUE AMOUNT.] For 1989-1990 and later school 
years, An American Indian-controlled contract or grant school 
that is located on a reservation within the state and that 
complies with the requirements in subdivision 1 is eligible to 
receive tribal contract or grant school aid.  The amount of aid 
is derived by: 
    (1) multiplying the formula allowance under section 
124A.22, subdivision 2, times the difference between (a) the 
actual pupil units as defined in section 124A.02, subdivision 19 
15, in attendance during the fall count week, but not including 
pupil units for which the school has received reimbursement 
under sections 123.933 and 126.23 for the school for the current 
school year and (b) the number of pupils for the current school 
year, weighted according to section 124.17, subdivision 1, 
receiving benefits under section 123.933 or 123.935 or for which 
the school is receiving reimbursement under section 126.23; 
    (2) subtracting from the result in clause (1) the amount of 
money allotted to the school by the federal government through 
the Indian School Equalization Program of the Bureau of Indian 
Affairs, according to Code of Federal Regulations, title 25, 
part 39, subparts A to E, for the basic program as defined by 
section 39, 11, b for the base rate as applied to kindergarten 
through twelfth grade, excluding additional weighting, but not 
money allotted through subparts F to L for contingency funds, 
school board training, student training, interim maintenance and 
minor repair, interim administration cost, prekindergarten, and 
operation and maintenance, and the amount of money that is 
received according to section 126.23; 
    (3) dividing the result in clause (2) by the actual pupil 
units; and 
    (4) multiplying the actual pupil units by the lesser of 
$1,500 or the result in clause (3). 
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
124.90, is amended by adding a subdivision to read: 
    Subd 4.  [PRIVATE INSURERS.] A school district may enroll 
as a provider for insurance companies to provide covered special 
education services to eligible persons.  To receive payments, 
the district must comply with relevant state and federal 
statutes.  A district may contract for services, and may 
contract with a third party agency to assist in administering 
and billing for these services. 
    Sec. 7.  Minnesota Statutes 1988, section 124A.036, 
subdivision 5, is amended to read: 
    Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
education aid for districts must be adjusted for each pupil, 
excluding a handicapped pupil as defined in section 120.03 or a 
nonhandicapped pupil as defined by section 120.181, attending a 
nonresident district under sections 120.062, 120.075, 120.0751, 
120.0752, 123.3515, 126.22, and 129B.52 to 129B.55.  The 
adjustments must be made according to this subdivision. 
    (a) General education aid paid to a resident district must 
be reduced by an amount equal to the general education revenue 
exclusive of compensatory revenue attributable to the pupil in 
the resident district. 
    (b) General education aid paid to a district serving a 
pupil in programs listed in this subdivision shall be increased 
by an amount equal to the general education revenue exclusive of 
compensatory revenue attributable to the pupil in the 
nonresident district.  
    (c) If the amount of the reduction to be made from the 
general education aid of the resident district is greater than 
the amount of general education aid otherwise due the district, 
the excess reduction must be made from other state aids due the 
district. 
    (d) The district of residence shall pay tuition to a 
district providing special instruction and services to a 
handicapped pupil, as defined in section 120.03, who is enrolled 
in a program listed in this subdivision.  The tuition shall be 
equal to (1) the actual cost of providing special instruction 
and services to the pupil, including a proportionate amount for 
debt service and for capital expenditure facilities and 
equipment, and debt service but not including any amount for 
transportation, minus (2) the amount of special education aid, 
attributable to that pupil, that is received by the district 
providing special instruction and services. 
    (e) An area learning center operated by an educational 
cooperative service unit, intermediate district, education 
district, or a joint powers cooperative may elect through the 
action of the constituent boards to charge tuition for 
nonhandicapped pupils rather than to calculate general education 
aid adjustments under clause (a), (b), or (c).  The tuition must 
be equal to the average general education revenue per pupil unit 
attributable to the student, or the average per pupil cost of 
operating the area learning center, whichever is less. 
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
128B.03, subdivision 4, is amended to read: 
    Subd. 4.  [DISTRICT 309 FEDERAL AID.] (a) The school board 
of independent school district No. 309 must transfer to the 
council, to the extent permissible, any federal aids or grants 
which the school district is eligible for or entitled to because 
of: 
    (1) the population in the experimental school attendance 
area; 
    (2) the pupils actually attending the experimental school; 
    (3) the program of the experimental school; 
    (4) the boundaries of the attendance area of the 
experimental school; or 
    (5) a related reason. 
    (b) For the sole purpose of receiving federal impact aid, 
the experimental school on the land comprising the former 
independent school district No. 25 is a local education agency, 
according to Code of Federal Regulations, title 34, section 
222.80.  The school and the land must not be included, for the 
purpose of determining federal impact aid, in independent school 
district No. 309. 
    Sec. 9.  Minnesota Statutes 1988, section 141.25, 
subdivision 7, is amended to read: 
    Subd. 7.  [MINIMUM STANDARDS.] No license shall be issued 
unless the commissioner first determines: 
    (a) That the applicant has a sound financial condition with 
sufficient resources available to meet the school's financial 
obligations; to refund all tuition and other charges, within a 
reasonable period of time, in the event of dissolution of the 
school or in the event of any justifiable claims for refund 
against the school by the student body; to provide adequate 
service to its students and prospective students; and for the 
proper use and support of the school to be maintained; 
    (b) That the applicant has satisfactory training facilities 
with sufficient tools and equipment and the necessary number of 
work stations to train adequately the students currently 
enrolled, and those proposed to be enrolled; 
    (c) That the applicant employs a sufficient number of 
qualified instructors trained by experience and education to 
give the training contemplated; 
    (d) That the premises and conditions under which the 
students work and study are sanitary, healthful, and safe, 
according to modern standards; 
    (e) That each occupational course or program of instruction 
or study shall be of such quality and content as to provide 
education and training which will adequately prepare enrolled 
students for entry level positions in the occupation for which 
trained; 
    (f) That the living quarters which are owned, maintained, 
or approved by the applicant for students are sanitary and safe; 
    (g) That the contract or enrollment agreement used by the 
school complies with the following provisions: 
    (1) The name and address of the school must be clearly 
stated; 
    (2) Inclusion of a clear and conspicuous disclosure that 
such agreement becomes a legally binding instrument upon written 
acceptance of the student by the school unless canceled pursuant 
to section 141.271; 
    (3) Must contain the school's cancellation and refund 
policy which shall be clearly and conspicuously entitled, 
"Buyer's Right to Cancel"; 
    (4) The total cost of the course including tuition and all 
other charges shall be clearly stated; 
    (5) The name and description of the course, including the 
number of hours or credits of classroom instruction and/or home 
study lessons shall be included; 
    (6) No contract or agreement shall contain a wage 
assignment provision and/or a confession of judgment clause; 
    (7) Each contract or enrollment agreement shall contain a 
clear and conspicuous explanation of the form and means of 
notice the student should use in the event the student elects to 
cancel the contract or sale, the effective date of cancellation, 
and the name and address of the seller to which the notice 
should be sent or delivered.  
    Sec. 10.  Minnesota Statutes 1988, section 141.25, 
subdivision 9, is amended to read: 
    Subd. 9.  [CATALOG OR BROCHURE.] Before a license is issued 
to a school, other than one which offers exclusively a 
correspondence course of instruction, the school shall furnish 
to the commissioner a catalog or brochure containing the 
following: 
     (1) identifying data, such as volume number and date of 
publication; 
     (2) name and address of the school and its governing body 
and officials; 
     (3) a calendar of the school showing legal holidays, 
beginning and ending dates of each course quarter, term, or 
semester, and other important dates; 
     (4) school policy and regulations on enrollment including 
dates and specific entrance requirements for each course; 
     (5) school policy and regulations about leave, absences, 
class cuts, make-up work, tardiness, and interruptions for 
unsatisfactory attendance; 
     (6) school policy and regulations about standards of 
progress for the student including the grading system of the 
school, the minimum grades considered satisfactory, conditions 
for interruption for unsatisfactory grades or progress, a 
description of any probationary period allowed by the school, 
and conditions of reentrance for those dismissed for 
unsatisfactory progress; 
     (7) school policy and regulations about student conduct and 
conditions for dismissal for unsatisfactory conduct; 
    (8) detailed schedule of fees, charges for tuition, books, 
supplies, tools, student activities, laboratory fees, service 
charges, rentals, deposits, and all other charges; 
    (9) policy and regulations, including an explanation of 
section 141.271, about refunding tuition, fees, and other 
charges if the student does not enter the course, withdraws, or 
is discontinued; 
    (10) a description of the available facilities and 
equipment; 
    (11) a course outline for each course offered showing 
course objectives, subjects or units in the course, type of work 
or skill to be learned, and approximate time, hours, or credits 
to be spent on each subject or unit; and 
    (12) policy and regulations about granting credit for 
previous education and training. 
    Sec. 11.  Minnesota Statutes 1989 Supplement, section 
141.35, is amended to read: 
    141.35 [EXEMPTIONS.] 
    None of the provisions of sections 141.21 to 141.36 shall 
apply to the following: 
    (a) Colleges authorized by the laws of Minnesota or of any 
other state or foreign country to grant degrees; 
    (b) Schools of nursing accredited by the state board of 
nursing or an equivalent public board of another state or 
foreign country; 
    (c) Public schools as defined in section 120.05; 
    (d) Private schools complying with the requirements of 
section 120.10, subdivision 2; 
    (e) Private and parochial nonprofit schools exempt from 
taxation under the constitution of Minnesota; 
    (f) Courses taught to students in a valid apprenticeship 
program taught by or required by a trade union; 
    (g) Schools exclusively engaged in training physically or 
mentally handicapped persons for the state of Minnesota; 
    (h) Schools now or hereafter licensed by boards authorized 
under Minnesota law to issue such licenses; 
    (i) Schools and educational programs, or training programs, 
conducted by persons, firms, corporations, or associations, for 
the training of their own employees, for which no fee is charged 
the employee; 
    (j) Schools engaged exclusively in the teaching of purely 
avocational or, recreational, or remedial subjects as determined 
by the commissioner.  Private schools teaching a method or 
procedure to increase the speed with which a student reads are 
not within this exemption; 
     (k) Driver training schools and instructors as defined in 
section 171.33, subdivisions 1 and 2; 
     (l) Classes, courses, or programs conducted by a bona fide 
trade, professional, or fraternal organization, solely for that 
organization's membership; 
     (m) Courses of instruction in the fine arts provided by 
organizations exempt from taxation pursuant to section 290.05 
and registered with the attorney general pursuant to chapter 
309.  "Fine arts" means activities resulting in artistic 
creation or artistic performance of works of the imagination 
which are engaged in for the primary purpose of creative 
expression rather than commercial sale or employment.  In making 
this determination the commissioner may seek the advice and 
recommendation of the Minnesota board of the arts; 
     (n) Classes, courses, or programs intended to fulfill the 
continuing education requirements for licensure or certification 
in a profession, which classes, courses, or programs have been 
approved by a legislatively or judicially established board or 
agency responsible for regulating the practice of the 
profession, and which are offered primarily to a person who 
currently practices the profession.; 
    (o) Classes, courses, or programs intended to prepare 
students to sit for undergraduate, graduate, postgraduate, or 
occupational licensing and occupational entrance examinations; 
    (p) Classes, courses, or programs of a seminar nature 
providing 16 or fewer hours of instruction that are not part of 
the curriculum for an occupation or are not intended to prepare 
a person for entry level employment; 
    (q) Classes, courses, or programs of a seminar nature 
providing instruction in personal development, modeling, or 
acting; and 
    (r) Training or instructional programs, in which one 
instructor teaches an individual student, that are not part of 
the curriculum for an occupation or are not intended to prepare 
a person for entry level employment.  
    Sec. 12.  [ALTERNATIVE DELIVERY OF SPECIALIZED 
INSTRUCTIONAL SERVICES.] 
    Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
of education may approve education proposals from independent 
school district No. 625, St. Paul, and up to nine additional 
school districts to provide prevention services as an 
alternative to special education and other compensatory programs 
during the 1990-1991, 1991-1992, and 1992-1993 school years.  A 
district with an approved program may, on a pilot basis, provide 
instruction and services in the regular education classroom to 
eligible pupils.  Pupils eligible to participate in the program 
are those low-performing pupils who, based on documented 
experience or the professional judgment of a classroom teacher 
or a team of licensed professionals, would eventually qualify 
for special education instruction or related services under 
Minnesota Statutes, section 120.17 if the intervention services 
authorized by this section were unavailable.  Pupils may be 
provided services during extended school days and throughout the 
entire year.  
    Subd. 2.  [PROPOSAL CONTENTS.] The proposal must set forth: 
    (1) the instructional services available to eligible pupils 
under Minnesota Statutes, section 124.311, subdivision 3, and 
handicapped pupils under Minnesota Statutes, section 120.03; 
    (2) the criteria to select pupils for the program and the 
assessment procedures to determine eligibility; 
    (3) the methods to involve parents or guardians of pupils 
and parent or community special education advocates in the 
program; 
    (4) the accounting procedures to document that federal 
special education money is used to supplement or increase the 
level of special education instruction and related services 
provided with state and local revenue, but in no case to 
supplant that state and local revenue, and that districts are 
expending at least the amount for special education instruction 
and related services required by federal law; 
    (5) the role of regular and special education teachers in 
planning and implementing the program; 
    (6) the review and evaluation procedures to be used by the 
district to address at least the following: 
    (i) the number of handicapped and nonhandicapped pupils 
served; 
    (ii) the impact of the program on the academic progress and 
social adjustment of the pupils; 
    (iii) the level of satisfaction teachers, parents, and 
pupils have with the program; 
    (iv) the effect of the program on the number of referrals 
for special education, chapter 1, and other categorical 
programs; 
    (v) the amount of time spent by teachers on procedural 
activities; 
    (vi) the increase in the amount of time the pupil is in a 
regular education classroom; and 
    (vii) cost implications; and 
    (7) any other information requested by the commissioner.  
    Subd. 3.  [REVIEW FOR EXCESS EXPENDITURES.] The 
commissioner shall review each proposal to determine whether the 
personnel, equipment, supplies, residential aid, and summer 
school are necessary to meet the district's obligation to 
provide special instruction and services to handicapped children 
according to Minnesota Statutes, section 120.17.  The 
commissioner shall not approve aid for any expenditures 
determined to be unnecessary. 
    Subd. 4.  [ANNUAL REPORT.] Each year the district must 
submit to the commissioner a report containing the information 
described in Minnesota Statutes, section 124.311, subdivision 7, 
and in subdivision 2, clause (6). 
    Subd. 5.  [RULE WAIVER.] The commissioner shall report to 
the education committees of the legislature any rule the state 
board of education is requested to waive and the disposition of 
the request.  
    Subd. 6.  [PUPILS' RIGHTS.] Any pupil participating in this 
program must be individually evaluated based upon the pupil's 
actual abilities and needs.  A pupil who is eligible for 
services under Minnesota Statutes, section 120.17 is entitled to 
procedural protections similar to those procedural protections 
provided under Public Law Number 94-142 in any matter that 
affects the identification, evaluation, placement, or change in 
placement of a pupil.  A participating district must ensure the 
protection of a pupil's civil rights, provide equal educational 
opportunities, and prohibit discrimination.  Failure to comply 
with this subdivision will at least cause a district to become 
ineligible to participate in this program.  Notwithstanding 
Minnesota Statutes, section 121.11, subdivision 12, a pupil's 
rights under this section cannot be waived by the state board of 
education. 
    Subd. 7.  [REVENUE AVAILABLE.] For fiscal year 1991, a 
district with an approved program shall receive the sum of the 
revenue it received for fiscal year 1990 for its special 
education program under Minnesota Statutes, sections 124.32, 
subdivisions 1b, 2, 5, and 10, and 275.125, subdivision 8c, 
multiplied by 1.03.  For each of fiscal years 1992 and 1993, the 
amount to be paid to a district with an approved program shall 
be the amount paid for the previous fiscal year multiplied by 
1.03.  
    For fiscal years 1991, 1992, and 1993, the ratio of aid 
payments for special education under Minnesota Statutes, section 
124.32, subdivisions 1b, 2, 5, and 10, to the levy for special 
education salaries under Minnesota Statutes, section 275.125, 
subdivision 8c, shall be equal to the ratio for fiscal year 1990.
    For fiscal year 1991, aid for a district with an approved 
program shall not be prorated. 
    For fiscal years 1991, 1992, and 1993, the state shall not 
pay a district with an approved program any aid under Minnesota 
Statutes, section 124.32, subdivisions 1b, 2, 5, and 10, and the 
district may not levy under Minnesota Statutes, section 275.125, 
subdivision 8c, except for secondary vocational handicapped 
teacher salaries, limited English proficiency teacher salaries, 
deficiencies, and other adjustments. 
    Revenue under this subdivision shall be available only for 
the purposes of this section. 
    Sec. 13.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes is directed to change the phrase 
"handicapped adults" wherever it appears in the education code 
to "adults with disabilities."  
    Sec. 14.  [EFFECTIVE DATES.] 
    Sections 2, 4, and 8 are retroactively effective July 1, 
1989.  Sections 6, 9, 10, 11, and 12 are effective the day 
following final enactment.  Section 5 is effective the day 
following final enactment, except that the subtraction in clause 
(1)(b)), is effective July 1, 1990. 

                               ARTICLE 4

              DRUG PREVENTION AND OTHER COMMUNITY PROGRAMS
    Section 1.  Minnesota Statutes 1988, section 121.882, 
subdivision 9, is amended to read: 
    Subd. 9.  [ASSISTANCE.] The department of education shall 
provide assistance to districts with programs described in this 
section.  The department must establish guidelines that list 
barriers to learning and development affecting children served 
by early childhood family education programs.  
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
121.912, subdivision 1b, is amended to read:  
    Subd. 1b.  [TRA AND FICA TRANSFER.] (a) Notwithstanding 
subdivision 1, a district shall transfer money from the general 
fund to the community education service fund for the employer 
contributions for teacher retirement and FICA obligations 
attributable to community education programs for employees who 
are members of a teacher retirement association and who are paid 
from the community service fund.  
    (b) A district shall not transfer money under paragraph (a) 
for employees who are paid with money other than normal 
operating funds, as defined in section 354.05, subdivision 27.  
    Sec. 3.  Minnesota Statutes 1988, section 124.261, is 
amended to read: 
    124.261 [ADULT HIGH SCHOOL GRADUATION AID.] 
    Adult high school graduation aid for eligible pupils age 21 
or over, equals an allowance of 65 percent of the general 
education formula allowance times 1.35 times the average daily 
membership under section 124.17, subdivision 2e.  Adult high 
school graduation aid must be paid in addition to any other aid 
to the district.  Average daily membership of eligible Pupils 
must age 21 or over may not be used in the computation of pupil 
units under section 124.17, subdivision 1, counted by the 
district for any purpose other than the computation of adult 
high school graduation aid. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
126.22, subdivision 2, is amended to read:  
    Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
eligible to participate in the high school graduation incentives 
program:  
    (a) any pupil who is between the ages of 12 and 16, except 
as indicated in clause (6), and who:  
    (1) is at least two grade levels below the performance 
level for pupils of the same age in a locally determined 
achievement test; or 
    (2) is at least one year behind in satisfactorily 
completing coursework or obtaining credits for graduation; or 
    (3) is pregnant or is a parent; or 
    (4) has been assessed as chemically dependent; or 
    (5) has been excluded or expelled according to sections 
127.26 to 127.39; or 
    (6) is between the ages of 12 and 21 and has been referred 
by a school district for enrollment in an eligible program or a 
program pursuant to section 126.23; or 
    (b) any pupil who is between the ages of 16 and 19 who is 
attending school, and who is at least two grade levels below the 
performance level for pupils of the same age in a locally 
determined achievement test, or is at least one year behind in 
obtaining credits for graduation, or is pregnant or is a parent, 
or has been assessed as chemically dependent; or 
    (c) any person between 16 and 21 years of age who has not 
attended a high school program for at least 15 consecutive 
school days, excluding those days when school is not in session, 
and who is at least two grade levels below the performance level 
for pupils of the same age in a locally determined achievement 
test, or is at least one year behind in obtaining credits for 
graduation, or is pregnant or is a parent, or has been assessed 
as chemically dependent; or 
    (d) any person who is at least 21 years of age and who:  
    (1) has received less fewer than 14 years of public or 
nonpublic education, beginning at age 5; 
    (2) has already completed the studies ordinarily required 
in the 10th grade but has not completed the requirements for a 
high school diploma or the equivalent; and 
    (3) at the time of application, (i) is eligible for 
unemployment compensation benefits or has exhausted the 
benefits, (ii) is eligible for or is receiving income 
maintenance and support services, as defined in section 
268.0111, subdivision 5, or (iii) is eligible for services under 
the displaced homemaker program, state wage-subsidy program, or 
any programs under the federal Jobs Training Partnership Act or 
its successor.  
    Notwithstanding section 127.27, subdivision 7, the 
provisions of section 127.29, subdivision 1, do not apply to a 
pupil under age 21 who participates in the high school 
graduation incentives program.  
     (e) An elementary school pupil who is determined by the 
district of attendance to be at risk of not succeeding in school 
is eligible to participate in the program. 
    Sec. 5.  Minnesota Statutes 1989 Supplement, section 
126.22, subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
according to subdivision 2, clause (a), (b), (c), or (d), or (e) 
may enroll in any program approved by the state board of 
education under Minnesota Rules, part 3500.3500, including or 
area learning centers under sections 129B.52 to 129B.55, or 
according to section 121.11, subdivision 12. 
    (b) A pupil who is eligible according to subdivision 2, 
clause (b), (c), or (d), may enroll in post-secondary courses 
under section 123.3514. 
    (c) A pupil who is eligible under subdivision 2, clause 
(a), (b), (c), or (d), or (e) may enroll in any public 
elementary or secondary education program.  However, a person 
who is eligible according to subdivision 2, clause (d), may 
enroll only if the school board has adopted a resolution 
approving the enrollment. 
    (d) A pupil who is eligible under subdivision 2, clause 
(a), (b), or (c), or (e) may enroll part time or full time in 
any nonprofit, nonpublic, nonsectarian school that has 
contracted with the school district of residence to provide 
educational services.  
    (e) An eligible institution providing eligible programs as 
defined in this subdivision may contract with an entity 
providing adult basic education programs under the community 
education program contained in section 121.88 for actual program 
costs. 
     Sec. 6.  Minnesota Statutes 1989 Supplement, section 
126.22, subdivision 8, is amended to read: 
    Subd. 8.  [ENROLLMENT VERIFICATION.] For a pupil attending 
an eligible programs program full time under subdivision 3, 
paragraph (d), the department of education shall pay 85 percent 
of the basic revenue of the district to the eligible program and 
15 percent of the basic revenue to the resident district within 
30 days after the eligible program verifies enrollment 
verification.  The department of education shall provide a form 
for the eligible program to use for enrollment 
verification using the form provided by the department.  For a 
pupil attending an eligible program part time, basic revenue 
shall be reduced proportionately, according to the amount of 
time the pupil attends the program, and the payments to the 
eligible program and the resident district shall be reduced 
accordingly.  A pupil for whom payment is made according to this 
section may not be counted by any district for any purpose other 
than computation of basic revenue, according to section 124A.22, 
subdivision 2.  If payment is made for a pupil under this 
subdivision, a school district shall not reimburse a program 
under section 126.23 for the same pupil. 
    Sec. 7.  Minnesota Statutes 1989 Supplement, section 
126.23, is amended to read: 
    126.23 [AID FOR PRIVATE ALTERNATIVE PROGRAMS.] 
    If a pupil enrolls in a nonsectarian alternative program 
operated by a private organization that has contracted with a 
school district to provide educational services for high school 
dropouts or other eligible students pupils under section 126.22, 
subdivision 2, the resident district must reimburse the provider 
an amount equal to at least 85 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. 8.  Minnesota Statutes 1988, section 126.70, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [PERMITTED USES.] A school board may approve a 
plan for any of the following purposes: 
    (1) for in-service education to increase the effectiveness 
of teachers in responding to children and young people at risk 
of not succeeding at school; 
    (2) to participate in the educational effectiveness program 
according to section 121.609; 
    (2) (3) to provide in-service education for elementary and 
secondary teachers to improve the use of technology in 
education; 
    (3) (4) to provide subject area in-service education 
emphasizing the academic content of curricular areas determined 
by the district to be a priority area; 
    (4) (5) to use experienced teachers, as mentors, to assist 
in the continued development of new teachers; 
    (5) (6) to increase the involvement of parents, business, 
and the community in education, including training teachers to 
plan and implement parental involvement programs that will more 
fully involve parents in their children's learning development; 
    (6) (7) for experimental delivery systems; 
    (7) (8) for in-service education to increase the 
effectiveness of principals and administrators; 
    (8) (9) for in-service education or curriculum development 
for programs for gifted and talented pupils; 
    (9) (10) for in-service education or curriculum development 
for cooperative efforts to increase curriculum offerings; 
    (10) (11) for improving curriculum, according to the needs 
identified under the planning, evaluation, and reporting process 
set forth in section 126.666; 
    (11) (12) for in-service education and curriculum 
development designed to promote sex equity in all aspects of 
education, with emphasis on curricular areas such as 
mathematics, science, and technology programs; 
    (12) (13) for in-service education or curriculum 
modification for handicapped pupils and low-achieving pupils; 
    (13) (14) for short-term contracts as described in section 
126.72; or 
    (14) (15) to employ teachers for an extended year to 
perform duties directly related to improving curriculum or 
teaching skills. 
    Sec. 9.  Laws 1989, chapter 329, article 4, section 19, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
education aid according to Minnesota Statutes, section 124.26: 
    $4,780,000 ..... 1990 
    $5,043,000 ..... 1991 
    The 1990 appropriation includes $638,000 for 1989 and 
$4,142,000 for 1990. 
    The 1991 appropriation includes $731,000 for 1990 and 
$4,312,000 for 1991. 
    Up to $235,000 in 1990 and $250,000 in 1991 may be used for 
contracts with private, nonprofit organizations for approved 
programs. 
    Up to $50,000 in 1991 may be used for small grants to adult 
basic education providers, including private nonprofit 
organizations providing basic education services, to fund 
service delivery projects that are ineligible for funding as 
approved programs.  Projects may include developing innovative 
curriculum for adult learners or meeting adult learners' needs 
for child care and transportation services. 
    Sec. 10.  Laws 1989, chapter 329, article 4, section 19, 
subdivision 5, is amended to read: 
    Subd. 5.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
childhood family education aid according to Minnesota Statutes, 
section 124.2711: 
    $9,635,900 $9,742,000 ..... 1990 
    $10,262,000 ..... 1991 
    The 1990 appropriation includes $1,235,000 for 1989 
and $8,400,000 $8,507,000 for 1990.  
    The 1991 appropriation includes $1,484,000 for 1990 and 
$8,778,000 for 1991. 
    Sec. 11.  [EXPANDED ECFE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
year 1991 is established to develop expanded early childhood 
family education programs that effectively integrate the roles 
of families, regular classroom teachers, and community-based 
social service agencies.  Notwithstanding the direction to serve 
children in the period of life from birth to kindergarten 
contained in Minnesota Statutes, section 121.882, the expanded 
programs shall be for children who are in kindergarten through 
grade 3 and their families who require: 
    (1) basic knowledge about the physical, mental, emotional, 
or educational development of their children; 
    (2) basic skills to provide for their children's learning 
and development; 
    (3) self-esteem; or 
    (4) information about availability or access to 
community-based social service agencies. 
    Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
school district, an education district, or districts that 
cooperate for a particular purpose.  To be eligible for a grant, 
a district or districts must meet all of the following criteria: 
    (1) have operated an early childhood family education 
program, according to Minnesota Statutes, section 121.882, for 
at least two years before applying for the grant; 
    (2) include families described in subdivision 1 in the 
early childhood family education programs of the district or 
districts; and 
    (3) ensure that families participating in the early 
childhood family education program reflect the demographic 
composition of the district or districts. 
    Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
expand an existing early childhood family education program, a 
district or districts must submit an application to the 
commissioner of education in the form and manner established by 
the commissioner.  The application must describe how the 
applicant will integrate the roles of families, regular 
classroom teachers, and community-based social service agencies 
and what resources will be available to continue the program if 
it is found to be effective.  The commissioner may require 
additional information from an applicant. 
     Subd. 4.  [REVIEWING APPLICATIONS.] When reviewing 
applications, the commissioner shall determine whether all of 
the requirements in subdivision 2 are met.  The commissioner may 
also use the following criteria when reviewing applications: 
     (1) the location of the proposed program; 
     (2) the number of children and families who would receive 
services; 
     (3) days and times that programs would be available, 
including after school, evenings, and weekends; and 
     (4) willingness of the district to provide information 
about the program to other districts and organizations. 
     Subd. 5.  [GRANT AWARDS.] The commissioner may award up to 
ten grants.  Grant recipients must be located throughout the 
state.  The amount of a grant shall be based on the number of 
children and families expected to participate in the program. 
     Subd. 6.  [PROCEEDS OF GRANTS.] Grant money shall be used 
to implement the expanded early childhood family education 
programs.  At least two grant recipients must provide 
transportation for participating children and their families to 
and from the program.  The commissioner must approve 
expenditures for transportation. 
    Subd. 7.  [EVALUATION.] The commissioner shall provide for 
an evaluation of the grant sites and shall recommend to the 
education committees of the legislature by January 1, 1992, 
whether or not programs for children in kindergarten through 
grade 3 and their families should be extended statewide.  If the 
commissioner recommends that the programs be made available 
statewide, the commissioner also shall recommend a process for 
implementing the program.  The commissioner shall evaluate the 
effectiveness of the expanded early childhood and family 
education programs as a component of the drug prevention 
initiative. 
    Sec. 12.  [GRANTS TO MEET THE NEEDS OF TARGETED CHILDREN 
AND YOUNG PEOPLE.] 
    Subdivision 1.  [TARGETED CHILDREN AND YOUNG PEOPLE.] A 
grant program for fiscal year 1991 is established to develop 
effective programs to help targeted children and young people 
overcome barriers to learning.  Targeted children and young 
people are those individuals, whether or not enrolled in school, 
who are under 21 years of age and who: 
    (1) are school dropouts; 
    (2) have failed in school; 
    (3) have become pregnant; 
    (4) are economically disadvantaged; 
    (5) are children of drug or alcohol abusers; 
    (6) are victims of physical, sexual, or psychological 
abuse; 
    (7) have committed a violent or delinquent act; 
    (8) have experienced mental health problems; 
    (9) have attempted suicide; 
    (10) have experienced long-term physical pain due to 
injury; 
    (11) are at risk of becoming or have become drug or alcohol 
abusers; 
    (12) have experienced homelessness; 
    (13) have been excluded or expelled from school under 
Minnesota Statutes, sections 127.26 to 127.39; or 
    (14) have been adjudicated children in need of protection 
or services. 
    Subd. 2.  [PLANNING GRANTS.] (a) The commissioner of 
education may award up to 20 planning grants to districts, 
community groups, or regional entities to:  
    (1) train individuals working with targeted children and 
young people; 
    (2) expand a community's ability to meet the needs of 
targeted children and young people by locating appropriate 
services and resources at or near a school site; and 
    (3) involve parents of targeted children and young people 
more fully in the education process. 
    (b) All planning grant recipients must offer vocational 
training or employment services, health screening and referrals, 
and mental health or family counseling. 
    Subd. 3.  [IMPLEMENTATION GRANTS.] Grants may be awarded to 
six of the 20 planning grant recipients to implement their plans 
for meeting the needs of targeted children and young people.  
These grants are available on a one-time basis only.  A district 
or districts receiving a grant may use the grant money in fiscal 
year 1991 and may carry forward any unencumbered money into 
fiscal year 1992.  
    Subd. 4.  [DEPARTMENT'S ROLE.] The commissioner of 
education shall develop criteria for awarding planning grants 
and implementation grants.  The criteria must include: 
    (1) targeting families confronting social or economic 
adversity; 
    (2) offering programs to targeted children and young people 
during and after school hours and during the summer; 
    (3) recognizing cultural and linguistic diversity among an 
area's population; and 
    (4) involving targeted children and young people in the 
planning and implementing processes.  
    Subd. 5.  [EVALUATION.] The commissioner of education shall 
provide for an evaluation of the demonstration sites and report 
to the legislature by February 1, 1992. 
    Sec. 13.  [DISTRICT REPORTS ON DELIVERING SERVICES TO 
TARGETED CHILDREN AND YOUNG PEOPLE.] 
    Subdivision 1.  [REPORT REQUIRED.] Each district shall 
report to the education department by November 15, 1990, the 
district's strategies for delivering services intended to help 
targeted children and young people overcome barriers to learning 
that are associated with characteristics listed in section 12, 
subdivision 1.  Based upon a compilation of the district 
reports, the commissioner of education shall recommend to the 
education committees of the legislature and the office of drug 
policy by January 1, 1991, those services and strategies that 
successfully help targeted children and young people overcome 
barriers to learning that are associated with characteristics 
listed in subdivision 1. 
    Subd. 2.  [REPORT CONTENT.] The department shall develop 
the form and content of the district report.  The report must at 
least identify: 
    (1) components of the service delivery system intended to 
help targeted children and young people overcome barriers to 
learning; 
    (2) persons involved in training district staff to assist 
targeted children and young people to overcome barriers to 
learning; 
    (3) individuals and institutional resources available to 
assist targeted children and young people to overcome barriers 
to learning; and 
    (4) how to coordinate community services and school 
programs to most effectively enable targeted children and young 
people to overcome barriers to learning.  
    Sec. 14.  [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 indicated. 
    Subd. 2.  [ECFE GRANTS.] For early childhood family 
education grants according to section 11: 
    $450,000 ..... 1991 
    Up to $50,000 of this amount may be used for evaluation of 
the grant sites and for contracting for services to administer 
the program. 
    Subd. 3.  [TARGETED GRANTS.] For grants to meet the needs 
of targeted children and young people according to section 12: 
    $400,000 ..... 1991 
    This amount includes funding for up to 20 planning grants 
of up to $5,000 each and implementation grants of up to $50,000 
each to up to six of the 20 sites receiving planning grants. 
    $25,000 is for evaluation of the six sites receiving 
implementation grants. 
    Subd. 4.  [EVALUATING PREVENTION STRATEGIES.] For 
evaluating drug abuse prevention strategies: 
    $75,000 ..... 1991 
    The commissioner shall evaluate up to 20 drug abuse 
prevention strategies and shall coordinate the evaluation with 
the office of drug policy and other entities conducting similar 
evaluations.  The commissioner shall report the results of the 
evaluation to the legislature, districts, and social service 
agencies by February 15, 1992. 
    Subd. 5.  [SURVEY.] For a survey of targeted children and 
young people, including those attending alternative education 
programs: 
    $50,000 ..... 1991 
    The department must report the survey results to the 
legislature by February 15, 1992. 
    Sec. 15.  [EFFECTIVE DATE.] 
    Sections 3, 4, clause (e), 6, and 7 are retroactively 
effective July 1, 1989.  Section 10 is effective the day after 
final enactment. 

                                ARTICLE 5

                               FACILITIES
    Section 1.  Minnesota Statutes 1988, section 121.148, is 
amended to read: 
    121.148 [SCHOOL DISTRICT CONSTRUCTION.] 
    Subdivision 1.  [COMMISSIONER APPROVAL.] In determining 
whether to give a school facility a positive, negative, or 
unfavorable review and comment, the commissioner must evaluate 
the proposals for facilities using the information provided 
under section 121.15, subdivision 7. 
    Subd. 2.  [POSITIVE REVIEW AND COMMENT.] If the 
commissioner submits a positive review and comment for a 
proposal according to section 121.15, the school board may 
proceed with the construction according to the requirements of 
applicable laws. 
    Subd. 2 3.  [NEGATIVE REVIEW AND COMMENT.] If the 
commissioner submits a negative review and comment for a 
proposal according to section 121.15, the school board, by 
resolution of the board, shall reconsider must not proceed with 
construction. 
    Subd. 4.  [UNFAVORABLE REVIEW AND COMMENT.] If the 
commissioner submits an unfavorable review and comment for a 
proposal under section 121.15, the school board, by resolution 
of the board, must reconsider construction.  If, upon 
reconsideration, the school board decides to proceed with 
construction, it may initiate proceedings for issuing bonds to 
finance construction under sections 475.51 to 475.76.  Unless 60 
percent of the voters at the election approve of issuing the 
obligations, the board is not authorized to issue the 
obligations. 
    Sec. 2.  Minnesota Statutes 1988, section 121.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONSULTATION.] A school district shall 
consult with the commissioner of education before developing any 
plans and specifications to construct, remodel, or improve the 
building or site of an educational facility, other than a 
technical institute, for which the estimated cost exceeds 
$100,000.  This consultation shall occur before a referendum for 
bonds, solicitation for bids, or use of capital expenditure 
facilities revenue according to section 124.243, subdivision 6, 
clause (2).  The commissioner may require the district to 
participate in a management assistance plan before conducting a 
review and comment on the project. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
121.15, subdivision 2, is amended to read: 
    Subd. 2.  [PLAN SUBMITTAL.] For a project for which 
consultation is required under subdivision 1, the commissioner, 
after the consultation required in subdivision 1, may require a 
school district to submit the following for approval:  
    (a) two sets of preliminary plans for each new building or 
addition, and 
    (b) one set of final plans for each construction, 
remodeling, or site improvement project.  The commissioner shall 
approve or disapprove the plans within 60 90 days after 
submission. 
    Final plans shall meet all applicable state laws, rules, 
and codes concerning public buildings, including sections 16B.59 
to 16B.73.  The department may furnish to a school district 
plans and specifications for temporary school buildings 
containing two classrooms or less.  
    Sec. 4.  Minnesota Statutes 1988, section 121.15, 
subdivision 7, is amended to read: 
    Subd. 7.  [INFORMATION REQUIRED.] A school board proposing 
to construct a facility described in subdivision 6 shall submit 
to the commissioner a proposal containing information including 
at least the following: 
    (a) the geographic area proposed to be served, whether 
within or outside the boundaries of the school district; 
    (b) the people proposed to be served, including census 
findings and projections for the next ten years of the number of 
preschool and school-aged people in the area; 
    (c) the reasonably anticipated need for the facility or 
service to be provided; 
    (d) a description of the construction in reasonable detail, 
including:  the expenditures contemplated; the estimated annual 
operating cost, including the anticipated salary and number of 
new staff necessitated by the proposal; and an evaluation of the 
energy efficiency and effectiveness of the construction, 
including estimated annual energy costs; 
    (e) a description of existing facilities within the area to 
be served and within school districts adjacent to the area to be 
served; the extent to which existing facilities or services are 
used; the extent to which alternate space is available, 
including other school districts, post-secondary institutions, 
or other public or private buildings, or other noneducation 
community resources; and the anticipated effect that the 
facility will have on existing facilities and services; 
    (f) the anticipated benefit of the facility to the area; 
    (g) if known, the relationship of the proposed construction 
to any priorities that have been established for the area to be 
served; 
    (h) the availability and manner of financing the facility 
and the estimated date to begin and complete the facility; 
    (i) desegregation requirements that cannot be met by any 
other reasonable means; and 
    (j) the relationship of the proposed facility to the 
cooperative integrated learning needs of the area; and 
    (k) the effects of the proposed facility on the district's 
operating budget.  
    Sec. 5.  [121.1502] [INSPECTION OF PUBLIC SCHOOLS.] 
    Subdivision 1.  [INSPECTION.] The commissioner and the 
state fire marshal shall develop a plan to inspect once every 
three years every public school facility used for educational 
purposes.  Inspections must begin during the 1990-1991 school 
year.  The plan must provide for continued inspection by local 
units of government of public school facilities that have been 
inspected by a local unit of government between January 1, 1987 
and January 1, 1990, and may provide for inspections by local 
units of government in other situations.  Each inspection report 
must be filed with the commissioner, the local school board, and 
the state fire marshal.  Notwithstanding section 299F.011, 
subdivisions 5a and 5b, a variance from the code must be 
approved by the state fire marshal before taking effect.  The 
state board may request that the state fire marshal inspect a 
particular school facility. 
    Subd. 2.  [CONTRACTING.] The commissioner may contract with 
the state fire marshal to provide the inspections provided in 
subdivision 1. 
    Sec. 6.  Minnesota Statutes 1989 Supplement, 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 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 the unreserved balance in the 
capital expenditure facilities account on June 30 of the second 
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 second prior school year is zero.  
    Sec. 7.  Minnesota Statutes Second 1989 Supplement, section 
124.2442, subdivision 1, is amended to read: 
    Subdivision 1.  [INSUFFICIENT FUNDS.] If the total 
appropriation for capital expenditure equipment aid or capital 
expenditure facilities aid for any fiscal year, plus any amount 
transferred under section 124.14, subdivision 7, is insufficient 
to pay all districts the full amount of aid earned, the 
department of education shall reduce each district's capital 
expenditure facilities and equipment revenue according to the 
calculations in subdivisions 2 to 4. 
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
124.83, subdivision 6, is amended to read: 
    Subd. 6.  [USES OF HEALTH AND SAFETY REVENUE.] Health and 
safety revenue may be used only for approved expenditures 
necessary to correct fire safety hazards, life safety hazards, 
or for the removal or encapsulation of asbestos from school 
buildings or property, asbestos-related repairs, cleanup and 
disposal of polychlorinated biphenyls found in school buildings 
or property, or the cleanup, removal, disposal, and repairs 
related to storing heating fuel or transportation fuels such as 
alcohol, gasoline, fuel oil, and special fuel, as defined in 
section 296.01.  Health and safety revenue must not be used for 
the construction of new facilities or the purchase of portable 
classrooms. 
    Sec. 9.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 11d, is amended to read: 
    Subd. 11d.  [EXTRA CAPITAL EXPENDITURE LEVY FOR LEASING 
BUILDINGS.] When a district finds it economically advantageous 
to rent or lease a building, or to purchase a building and site 
under an installment purchase agreement, lease purchase 
agreement, or any other deferred payment agreement authorized 
under section 465.71, for any instructional purposes and it 
determines that the capital expenditure facilities revenues 
authorized under section 124.243 are insufficient for this 
purpose, it may apply to the commissioner for permission to make 
an additional capital expenditure levy for this purpose.  An 
application for permission to levy under this subdivision must 
contain financial justification for the proposed levy, the terms 
and conditions of the proposed lease or agreement, and a 
description of the space to be leased or purchased according to 
any type of deferred payment agreement, and its proposed use.  
The criteria for approval of applications to levy under this 
subdivision must include:  the reasonableness of the price, the 
appropriateness of the space to the proposed activity, the 
feasibility of transporting pupils to the leased building, 
conformity of the lease or agreement to the laws and rules of 
the state of Minnesota, and the appropriateness of the proposed 
lease or agreement to the space needs and the financial 
condition of the district.  The commissioner must not authorize 
a levy under this subdivision in an amount greater than the cost 
to the district of renting or leasing or purchasing a building 
for approved purposes.  The proceeds of this levy must not be 
used for leasing or renting a facility owned by a district or 
for custodial or other maintenance services or to purchase a 
building newly constructed under an installment purchase 
agreement, lease purchase agreement, or any other deferred 
payment agreement authorized under section 465.71. 
    Sec. 10.  Minnesota Statutes 1988, section 275.125, is 
amended by adding a subdivision to read: 
    Subd. 11f.  [LEVY FOR CERTAIN LEASE PURCHASES.] A district 
may annually levy the amount needed to make payments required by 
a lease purchase agreement, installment purchase agreement, or 
other deferred payment agreement authorized by Minnesota 
Statutes 1989 Supplement, section 465.71, if:  
    (1) the agreement was approved by the commissioner before 
July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
section 275.125, subdivision 11d; or 
    (2) the district levied in 1989 for the payments. 
    Sec. 11.  Minnesota Statutes 1989 Supplement, section 
326.03, subdivision 2, is amended to read: 
    Subd. 2.  Nothing contained in sections 326.02 to 326.15 
shall prevent persons from advertising and performing services 
such as consultation, investigation, or evaluation in connection 
with, or from making plans and specifications for, or from 
supervising, the erection, enlargement, or alteration of any of 
the following buildings: 
    (a) Dwellings for single families, and outbuildings in 
connection therewith, such as barns and private garages; 
    (b) Two family dwellings; 
    (c) Any farm building or accessory thereto; or 
    (d) Temporary buildings or sheds used exclusively for 
construction purposes, not exceeding two stories in height, and 
not used for living quarters; or 
    (e) Any public work or public improvement done by a public 
body in this state where the cost of the work or improvement 
does not exceed $100,000. 
    Sec. 12.  Minnesota Statutes 1989 Supplement, section 
465.71, is amended to read: 
    465.71 [INSTALLMENT AND LEASE PURCHASES; CITIES; COUNTIES; 
SCHOOL DISTRICTS.] 
    A home rule charter city, statutory city, county, town, or 
school district may purchase real or personal property under an 
installment contract, or lease real or personal property with an 
option to purchase under a lease purchase agreement, by which 
contract or agreement title is retained by the seller or vendor 
or assigned to a third party as security for the purchase price, 
including interest, if any, but such purchases are subject to 
statutory and charter provisions applicable to the purchase of 
real or personal property.  For purposes of the bid requirements 
contained in section 471.345, "the amount of the contract" shall 
include the total of all lease payments for the entire term of 
the lease under a lease-purchase agreement.  The obligation 
created by a lease purchase agreement or installment contract 
shall not be included in the calculation of net debt for 
purposes of section 475.53, shall be deemed to constitute the 
issuance of an obligation under section 475.58, subdivision 1, 
clause (6), and shall not constitute debt under any other 
statutory provision.  No election shall be required in 
connection with the execution of a lease purchase agreement or 
installment contract authorized by this section.  The city, 
county, town, or school district must have the right to 
terminate a lease purchase agreement at the end of any fiscal 
year during its term. 
    Sec. 13.  [FACILITIES REVIEW.] 
    (a) The commissioner of education, in consultation with 
appropriate state and local officials, shall: 
    (1) prepare a document for school districts that explains 
all statutes and rules that apply to facilities used for 
instruction; 
    (2) develop a comprehensive on-site review form to be used 
when school buildings are inspected for educational adequacy, 
health and safety, and handicapped accessibility; 
    (3) determine whether standard plans for instructional 
facilities should be developed by a state architect; 
    (4) define the data elements related to instructional 
facilities that must be submitted by school districts to the 
department; 
    (5) conduct an inventory of the condition of existing 
facilities; and 
    (6) conduct a regional demographic and economic analysis. 
    (b) A recommendation must not conflict with or supplant 
existing law, including any law regarding inspections by the 
office of the state fire marshal, or any requirement contained 
in the life safety code. 
    (c) Any survey of school buildings by the department of 
administration to determine the degree of handicapped 
accessibility must be conducted in conjunction with the 
inventory of school facilities required in this section. 
    Sec. 14.  [APPROPRIATION.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for fiscal year 1991. 
    Subd. 2.  [FIRE MARSHAL CONTRACT.] $200,000 for contracting 
with the state fire marshal to provide the services required 
under section 5. 
    Subd. 3.  [FACILITIES REVIEW.] $50,000 for the facilities 
review required in section 13.  
    The commissioner must transfer 1.0 state complement from 
any other section to the financial management and transportation 
section. 
    Sec. 15.  [EFFECTIVE DATE.] 
    Sections 1, 2, 3, 4, 5, and 7 are effective the day after 
their final enactment. 
    Section 8 is effective for health and safety projects 
approved the day after its final enactment. 
    Section 11 is effective March 15, 1991. 

                               ARTICLE 6

                          COOPERATIVE PROGRAMS
    Section 1.  Minnesota Statutes 1988, section 120.062, is 
amended by adding a subdivision to read: 
    Subd. 8a.  [WAIVER OF DEADLINES.] (a) Notwithstanding 
subdivision 4, upon agreement of the resident and nonresident 
school districts, a pupil may submit an application to a 
nonresident district after January 1 for enrollment beginning 
the following school year.  The pupil, the pupil's parent or 
guardian, the district of residence, and the district of 
attendance must observe, in a prompt and efficient manner, the 
application and notice procedures in subdivisions 4 and 6, 
except that the application and notice deadlines do not apply. 
    (b) Notwithstanding subdivision 4, if as a result of an 
agreement under section 122.541 or 122.535 entered into after 
January 1 a pupil is assigned to a different school, the pupil 
may submit an application to a nonresident district after 
January 1 but before June 1 for enrollment beginning the 
following school year.  The pupil, the pupil's parent or 
guardian, the district of residence, and the district of 
attendance must observe, in a prompt and efficient manner, the 
application and notice procedures in subdivisions 4 and 6, 
except that the application and notice deadlines do not apply. 
    Sec. 2.  Minnesota Statutes 1988, section 120.062, 
subdivision 9, is amended to read: 
    Subd. 9.  [TRANSPORTATION.] If requested by the parent of a 
pupil, the nonresident district shall provide transportation 
within the district.  The state shall pay transportation aid to 
the district according to section 124.225. 
    The resident district is not required to provide or pay for 
transportation between the pupil's residence and the border of 
the nonresident district.  A parent may be reimbursed by the 
nonresident district for the costs of transportation from the 
pupil's residence to the border of the nonresident district if 
the pupil is from a family whose income is at or below the 
poverty level, as determined by the federal government.  
    At the time a nonresident district notifies a parent or 
guardian that an application has been accepted under subdivision 
5 or 6, the nonresident district must provide the parent or 
guardian with the following information regarding the 
transportation of nonresident pupils under this section: 
    (1) a nonresident district may transport a pupil within the 
pupil's resident district under this section only with the 
approval of the resident district; and 
    (2) a parent or guardian of a pupil attending a nonresident 
district under this section may appeal under section 16, the 
refusal of the resident district to allow the nonresident 
district to transport the pupil within the resident district. 
    Sec. 3.  Minnesota Statutes Second 1989 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 June and July school district tax settlement 
revenue received in that calendar year; or 
    (2) the sum of the state aids and credits enumerated in 
section 124.155, subdivision 2, which are for the fiscal year 
payable in that fiscal year plus 31.0 percent of the amount of 
the levy certified in the prior calendar year according to 
section 124A.03, subdivision 2, plus or minus auditor's 
adjustments, not including levy portions that are assumed by the 
state; or 
    (3) 31.0 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, subdivision 
subdivisions 4 and 6a, and Laws 1975, chapter 261, section 4; 
and 
    (iv) amounts levied for bonds issued and interest thereon, 
amounts levied for debt service loans and capital loans, amounts 
levied for down payments under section 124.82, subdivision 3, 
amounts levied for education district bonds under section 
122.96, subdivision 5, 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. 4.  Minnesota Statutes 1989 Supplement, section 
122.241, subdivision 2, is amended to read: 
    Subd. 2.  [COOPERATION REQUIREMENTS.] Cooperating districts 
shall: 
    (1) have implement a written agreement according to section 
122.541 no later than the first year of cooperation; 
    (2) all be members of one education district, if any one of 
the districts is a member, no later than the end of the second 
year of cooperation; and 
    (3) all be members of one ECSU, if any one of the districts 
is a member.  
    Sec. 5.  Minnesota Statutes 1989 Supplement, section 
122.243, subdivision 2, is amended to read: 
    Subd. 2.  [VOTER APPROVAL.] During the first or second year 
of cooperation, a referendum on the question of combination 
shall be conducted.  The referendum shall be on a date called by 
the school boards.  The referendum shall be conducted by the 
school boards according to the Minnesota election law, as 
defined in section 200.01.  If the referendum fails, the same 
question or a modified question may be submitted the following 
school year.  If a question is submitted, the second referendum 
must be conducted on a date before October 1.  If the referendum 
fails again, the same question may not be submitted.  A 
different question may be submitted on any date before October 1.
Referendums shall be conducted on the same date in all districts.
    Sec. 6.  Minnesota Statutes 1988, section 122.535, is 
amended by adding a subdivision to read: 
    Subd. 6.  [SEVERANCE PAY.] A district shall pay severance 
pay to a teacher who is:  
    (1) placed on unrequested leave of absence by the district 
because the teacher's position is discontinued as a result of 
the agreement; and 
    (2) not employed by another district for the school year 
following the teacher's placement on unrequested leave of 
absence. 
    The severance pay shall be equivalent to the teacher's 
salary for one year and is subject to section 465.72.  The 
district may levy according to section 33 for the severance pay. 
    Sec. 7.  [122.539] [MEETINGS.] 
    (a) Notwithstanding any law to the contrary, a joint powers 
board established under section 124.494 or article 11, section 
1, and the board of each of its member districts may hold 
meetings at a facility operated by the joint powers board. 
    (b) The joint powers board shall establish and maintain a 
schedule of the time and place of its meetings and shall give 
notice of regular and special meetings as required under section 
471.705. 
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
122.91, subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE.] The purpose of an education 
district is to increase educational opportunities for learners 
by increasing cooperation and coordination among school 
districts and post-secondary institutions and to replace other 
existing cooperative structures. 
    Sec. 9.  Minnesota Statutes 1989 Supplement, section 
122.91, subdivision 5, is amended to read: 
    Subd. 5.  [JOINDER AND WITHDRAWAL.] A process for a 
district to join or withdraw from an education district shall be 
included in the education district agreement. 
    If (a) A member school district withdraws must not 
withdraw from an education district that receives revenue under 
section 124.2721 before the end of the fiscal year for which a 
levy under section 124.2721 has been certified, a reduction in 
the school district's general education aid for the fiscal year 
to which the levy is attributable must be made.  The amount of 
aid reduction equals the amount that the school district 
certified for that year under section 124.2721 minus transition 
aid allocated for that levy according to section 273.1398, 
subdivision 6.  The amount of the aid reduction shall be paid to 
the education district.  The school district need not transfer 
the revenue required under section 124.2721, subdivision 3a. 
    (b) Notwithstanding paragraph (a), a school district that 
certified a levy under section 124.2725 for fiscal year 1991 may 
transfer from one education district to another to comply with 
section 122.241, subdivision 2, clause (2).  The commissioner 
must adjust the revenue of both education districts so that the 
education district revenue attributable to the transferring 
school district is transferred from the previous education 
district to the new education district. 
    (c) By August 1 of each year, an education district must 
notify the department of education concerning which school 
districts will be members of the education district for the 
purposes of certifying to the department of education the amount 
of revenue to be raised under section 124.2721. 
    Sec. 10.  [122.937] [EDUCATION DISTRICT BARGAINING.] 
    Subdivision 1.  [EDUCATION DISTRICT AGREEMENT.] The 
education district agreement may contain a provision adopted by 
a vote of the majority of the full membership of the board of 
each member school district that grants the education district 
board the authority to negotiate a collective bargaining 
agreement for teachers on behalf of all member school districts 
under this section.  This authority may allow the education 
district to be the public employer of teachers for the purposes 
of chapter 123, 125, or 179A if provided for in the plan under 
subdivision 2.  If this provision is not adopted by the board of 
any member district, the provision must not be included in the 
education district agreement.  As used in this section, 
"teacher" has the meaning given it in section 179A.03, 
subdivision 18. 
    To negotiate a collective bargaining agreement under this 
section, an education district must: 
    (1) agree to negotiate collective bargaining agreements for 
teachers on behalf of all member districts for at least two 
consecutive two-year periods beginning July 1 of an odd-numbered 
year; 
    (2) agree to certify to the department of education the 
amount of general education revenue to be raised for all member 
districts for each year that a collective bargaining agreement 
negotiated by the education district under this section is in 
effect; and 
    (3) adopt a plan under subdivision 2 that is agreed upon by 
the school board and the exclusive representative of teachers in 
each member district and approved by the commissioner of 
education and the commissioner of mediation services under 
subdivision 3. 
    Unless otherwise specified, all provisions in this section 
apply only to an education district that negotiates a collective 
bargaining agreement under this section. 
    Subd. 2.  [EDUCATION DISTRICT BARGAINING IMPLEMENTATION 
PLAN.] An education district board with a collective bargaining 
provision under subdivision 1 must adopt, by resolution, a plan 
for implementing education district teacher collective 
bargaining.  The plan must specify: 
    (1) whether a new bargaining unit structure will be put in 
place covering all teachers in the education district; 
    (2) the procedure used to establish a new bargaining unit 
structure, which may include certification of a new exclusive 
representative for the teachers in the education district; 
    (3) whether technical college teachers in the education 
district will be included in a new bargaining unit structure 
covering all teachers in the education district or whether a 
separate technical college bargaining unit will be established; 
    (4) whether the education district board or member school 
boards will be the public employer of teachers for the purposes 
of chapter 123, 125, or 179A and any other laws governing the 
employment of teachers; 
    (5) the process for ratifying contracts by the teachers in 
the education district and by the member school boards or the 
education district board; 
    (6) the specific fiscal duties and responsibilities that 
belong to member district boards and to the education district 
board; 
    (7) the procedures required to allow member district boards 
to fulfill their fiscal duties and responsibilities; 
    (8) the financial status of each member district; 
    (9) a description of labor-management relations in each 
member district over the past ten years; 
    (10) whether the education district will implement a 
combined seniority list under section 125.12, subdivision 6b; 
     (11) a provision for the transition to a successor employer 
and exclusive representative of teachers for a member district 
that withdraws from the education district under subdivision 4 
and a definition of teachers who will be affected by the 
transition; 
    (12) the date by which a collective bargaining agreement 
must be signed that is no later than June 30 of the odd-numbered 
calendar year; and 
    (13) any additional information requested by the 
commissioner of education or the commissioner of mediation 
services. 
     All fiscal duties and responsibilities not specifically 
assigned to the education district board under clause (6)  
remain with the member district boards. 
    Subd. 3.  [APPROVAL OF THE BARGAINING IMPLEMENTATION PLAN.] 
A plan developed under subdivision 2 must be submitted to the 
commissioner of education and the commissioner of mediation 
services for approval.  The commissioners shall jointly 
determine the date for submitting the plan.  The commissioners 
must jointly approve or disapprove the plan within 60 days.  The 
commissioners may disapprove the plan if they jointly determine 
that the plan will not provide stable and constructive 
labor-management relations in the education district or if the 
plan or any modification of the plan is incomplete.  An 
education district may revise and resubmit a disapproved plan on 
a date jointly determined by the commissioners.  The 
commissioners must jointly approve or disapprove the resubmitted 
plan within 30 days. 
    Subd. 4.  [JOINDER AND WITHDRAWAL.] (a) Notwithstanding 
section 122.91, subdivision 5, a member district of an education 
district that has entered into a collective bargaining agreement 
negotiated by the education district under this section may 
withdraw from the education district only at the end of a 
two-year period for which the collective bargaining agreement is 
in effect.  A member district withdrawing under this subdivision 
must notify the education district board at least 365 days 
before withdrawing.  The teachers in a withdrawing member 
district are governed by the collective bargaining agreement in 
effect for the education district until a successor agreement is 
negotiated by the withdrawing district. 
    (b) Notwithstanding section 122.91, subdivision 5, a school 
district may join an education district that has entered into a 
collective bargaining agreement negotiated by the education 
district under this section only at the end of the two-year 
period for which the collective bargaining agreement is in 
effect. 
    Subd. 5.  [COMBINED SENIORITY LIST.] Notwithstanding any 
law to the contrary, the school board of each member district 
may negotiate a plan with the exclusive representative of the 
teachers in the member district to provide for unrequested leave 
of absence for teachers in the education district under section 
125.12, subdivision 6a. 
    If compatible plans for unrequested leave are not 
negotiated under section 125.12, subdivision 6a, by July 1 of 
the first year of the two-year period for which the education 
district negotiates a collective bargaining agreement under this 
section, the education district shall be governed by section 
125.12, subdivision 6b, on the basis of a combined seniority 
list of all the teachers in the education district.  For the 
purpose of establishing a combined seniority list, each member 
district must be considered to have started school on the same 
date. 
    Subd. 6.  [BARGAINING AGREEMENT.] The terms and conditions 
of employment of teachers in a member district of an education 
district will be governed by the contract executed by the 
exclusive bargaining representative and that member district 
until a successor contract is executed. 
    Subd. 7.  [GRIEVANCES.] A grievance in a member district 
must be resolved under the terms of the collective bargaining 
agreement for teachers in effect at the time the grievance arose.
    Subd. 8.  [AUTHORITY.] An education district with a plan 
approved under subdivision 3 has the authority to implement that 
plan.  When a provision in the plan required under subdivision 
2, clauses (1) to (13) conflicts with any law in chapter 123, 
125, or 179A, the education district and member districts will 
be governed by the provision in the plan. 
    Unless specifically provided otherwise in the plan, chapter 
179A governs the rights and duties of employers and employees in 
an education district. 
    Subd. 9.  [CONTRACT DEADLINE AND PENALTIES.] 
Notwithstanding any law to the contrary, an education district 
that negotiates a collective bargaining agreement for teachers 
under this section is exempt from contract deadlines and 
penalties for a two-year period beginning July 1, 1991. 
    Sec. 11.  Minnesota Statutes 1988, section 122.94, 
subdivision 5, is amended to read: 
    Subd. 5.  [ATTENDANCE IN OTHER DISTRICTS.] (a) The 
agreement may provide for a pupil who is a resident of a member 
district to enroll in programs or courses offered by another 
member district or transfer to another member district.  A pupil 
and parent shall consult with a career teacher, counselor, or 
principal before transferring to another district.  The 
agreement shall specify procedures for reimbursement among the 
member districts.  The district of residence shall count all 
resident pupils who enroll in programs or courses or transfer to 
another district as its pupils for the purpose of state aid and 
levy limitations.  The agreement shall determine whether 
transportation is available for pupils enrolled in programs or 
courses or transferring to another district. 
    (b) Paragraph (a) does not limit any rights or duties under 
section 120.062. 
    Sec. 12.  Minnesota Statutes 1989 Supplement, section 
122.94, subdivision 6, is amended to read: 
    Subd. 6.  [COMMON ACADEMIC CALENDAR.] For 1990-1991 
1991-1992 and later school years, the agreement must require a 
common academic calendar for all member districts of an 
education district.  For purposes of this subdivision, a common 
academic calendar must include at least the following: 
    (1) the number of days of instruction; 
    (2) the first and last days of instruction in a school 
year; and 
    (3) the specific days reserved for staff development. 
    Before the 1990-1991 school year, each education district 
must report to the state board of education on ways that other 
components of the academic calendar in each member district will 
affect the implementation of the five-year plan described in 
section 122.945.  Other components include the length of the 
school day, the time the school day begins and ends, and the 
number of periods in the day. 
    Sec. 13.  Minnesota Statutes 1989 Supplement, section 
122.945, subdivision 2, is amended to read: 
    Subd. 2.  [SUBMISSION AND APPROVAL OF FIVE-YEAR PLAN.] Each 
education district must submit a five-year plan developed 
according to subdivision 1 to the state board of education.  An 
education district established before January November 1, 1990 
1989, must submit a plan to the state board by April 1, 1990.  
An education district established after December October 31, 
1989, must submit a plan to the state board by April June 1 of 
the first year that the education district will certify the 
amount of education district revenue to be raised under section 
124.2721.  The board must approve or disapprove the plan within 
60 days of receiving it from the education district the required 
submission date. 
    Sec. 14.  Minnesota Statutes 1988, section 123.3514, 
subdivision 6, is amended to read: 
    Subd. 6.  [FINANCIAL ARRANGEMENTS.] At the end of each 
school year, the department of education shall pay the tuition 
reimbursement amount within 30 days to the post-secondary 
institutions for courses that were taken for secondary credit.  
The amount of tuition reimbursement shall equal the lesser of: 
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course taken by the secondary 
pupil; or 
    (2) an amount equal to the difference between the basic 
revenue of the district for that pupil and an amount computed by 
multiplying the basic revenue of the district for that pupil by 
a ratio.  The ratio to be used is the total number of hours that 
the pupil is enrolled in courses in the secondary school during 
the regular school year over the total number of secondary 
instructional hours per pupil in that pupil's resident district. 
    The amount paid for each pupil shall be subtracted from the 
general education aid paid to the pupil's resident district of 
attendance.  If the amount to be subtracted is greater than the 
amount of general education aid due the district, the excess 
reduction shall be made from other state aids due to the 
district.  If a pupil is enrolled in a course for post-secondary 
credit, the school district shall include the pupil in the 
average daily membership only for the portion of time during 
which the pupil is enrolled in courses at the secondary school 
and enrolled in courses at a post-secondary institution for 
secondary credit. 
     The department shall not pay any tuition reimbursement or 
other costs of a course taken for post-secondary credit only.  
    Sec. 15.  Minnesota Statutes 1988, section 123.3514, 
subdivision 6b, is amended to read: 
    Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
At the end of each school year, the department of education 
shall pay the tuition reimbursement amount to the post-secondary 
institutions for courses taken to fulfill high school graduation 
requirements by pupils eligible for adult high school graduation 
aid.  The amount of the tuition reimbursement equals the lesser 
of:  
    (1) the actual costs of tuition, textbooks, materials, and 
fees directly related to the course or program taken by the 
pupil; or 
    (2) an amount equal to the difference between the adult 
high school graduation aid attributable to that pupil and an 
amount computed by multiplying the adult high school graduation 
aid by the ratio of the total number of hours that the pupil is 
enrolled in courses in the secondary school during the regular 
school year over the total number of secondary instructional 
hours per pupil in that pupil's resident district.  
    The amount of tuition reimbursement paid for each pupil 
shall be subtracted from the adult high school graduation aid 
paid to the pupil's resident district of attendance.  If a pupil 
is enrolled in a course for post-secondary credit, the school 
district shall include the pupil in average daily membership as 
computed under section 120.17, subdivision 1, only for the 
portion of time during which the pupil is enrolled in courses at 
the secondary school and enrolled in courses at the 
post-secondary institution for secondary credit.  
     The department must not pay any tuition reimbursement or 
other costs of a course taken for post-secondary credit only. 
    Sec. 16.  Minnesota Statutes 1988, section 123.39, 
subdivision 6, is amended to read: 
    Subd. 6.  The board may transport pupils residing outside 
of the district but attending school therein if these pupils 
present themselves within the district on one of the regular 
routes traveled in the transportation of the pupils of the 
district. district. For the purposes of this subdivision, a 
"nonresident pupil" is a pupil who resides in one district, 
defined as the "resident district" and attends school in another 
district, defined as the "nonresident district." 
    A nonresident district may transport a nonresident pupil 
within its borders.  A nonresident district may not transport a 
nonresident pupil on a school district owned or contractor 
operated school bus within the pupil's resident district without 
the approval of the resident district under section 120.062. 
    The parent or guardian of a nonresident pupil attending a 
nonresident district under section 120.062 may submit a written 
request to the resident district asking that the resident 
district allow the nonresident district to provide 
transportation for the pupil within the pupil's resident 
district.  The resident district must approve or disapprove the 
request, in writing, within 30 days.  The parent or guardian may 
appeal the refusal of the resident district to the commissioner 
of education.  The commissioner must act on the appeal within 30 
days. 
    Sec. 17.  Minnesota Statutes 1988, section 123.58, 
subdivision 2, is amended to read: 
    Subd. 2.  [ESTABLISHMENT OF EDUCATIONAL COOPERATIVE SERVICE 
UNITS.] (a) In furtherance of this policy, ten educational 
cooperative service units are designated.  Each unit, should it 
become operational, shall be termed an educational cooperative 
service unit, hereafter designated as an ECSU.  Geographical 
boundaries for each ECSU shall coincide with those identified in 
governor's executive orders 8, dated September 1, 1971, and 59, 
dated May 29, 1973, issued pursuant to the regional development 
act of 1969, Minnesota Statutes, sections 462.381 to 462.397, 
with the following exceptions: 
    (i) Development regions one and two shall be combined to 
form a single ECSU; 
    (ii) Development regions six east and six west shall be 
combined to form a single ECSU; 
    (iii) Development regions seven east and seven west shall 
be combined to form a single ECSU. 
    (b) The ECSU shall cooperate with the regional development 
commission for the region with which its boundaries coincide but 
shall not be responsible to nor governed by that regional 
development commission. 
    (b) (c) The geographic location of the central 
administrative office of a school district shall determine the 
membership of the total school district in a particular ECSU.  
Existing school district boundaries shall not be altered as a 
result of this section. 
    (c) (d) Notwithstanding paragraphs (a), (b), and (c), a 
school district may become a full member of an ECSU other than 
the one in which its central administrative office is located if 
the district is a member of an education district or a 
participant in another cooperative agreement, and more than half 
of the member districts of the education district or 
participants in the cooperative agreement are members of another 
ECSU. 
     (e) Two or more identified ECSU units may, upon approval by 
a majority of school boards of participating school districts in 
each affected ECSU, be combined and administered as a single 
ECSU unit but state assistance shall be allocated on the basis 
of two or more ECSU units. 
    (d) (f) The initial organization of each ECSU may occur 
only upon petition to the state board of education by a majority 
of all school districts in an ECSU.  The state board of 
education shall, upon receipt of this petition, invite 
representation from all public school districts and shall 
encourage the participation of nonpublic school administrative 
units to the extent allowed by law in an ECSU at a regional 
meeting.  The state board of education shall then assist in the 
necessary organizational activities for establishment of an ECSU 
pursuant to the requirements of this section. 
    Sec. 18.  Minnesota Statutes 1989 Supplement, section 
123.58, subdivision 9, is amended to read: 
    Subd. 9.  [FINANCIAL SUPPORT FOR THE EDUCATIONAL 
COOPERATIVE SERVICE UNITS.] (a) Financial support for ECSU 
programs and services shall be provided by participating local 
school districts and nonpublic school administrative units with 
private, state and federal financial support supplementing as 
available.  The ECSU board of directors may, in each year, for 
the purpose of paying any administrative, planning, operating, 
or capital expenses incurred or to be incurred, assess and 
certify to each participating school district and nonpublic 
school administrative unit its proportionate share of any and 
all expenses.  This share shall be based upon the extent of 
participation by each district or nonpublic school 
administrative unit and shall be in the form of a service fee.  
Each participating district and nonpublic school administrative 
unit shall remit its assessment to the ECSU board as provided in 
the ECSU bylaws.  The assessments shall be paid within the 
maximum levy limitations of each participating district.  No 
participating school district or nonpublic school administrative 
unit shall have any additional liability for the debts or 
obligations of the ECSU except that assessment which has been 
certified as its proportionate share or any other liability the 
school district or nonpublic school administrative unit agrees 
to assume. 
     (b) Any property acquired by the ECSU board is public 
property to be used for essential public and governmental 
purposes which shall be exempt from all taxes and special 
assessments levied by a city, county, state or political 
subdivision thereof.  If the ECSU is dissolved, its property 
must be distributed to the member public school districts at the 
time of the dissolution. 
     (c) A school district or nonpublic school administrative 
unit may elect to withdraw from participation in the ECSU by a 
majority vote of its full board membership and upon compliance 
with the applicable withdrawal provisions of the ECSU 
organizational agreement.  Upon receipt of the withdrawal 
resolution reciting the necessary facts, the ECSU board shall 
file a certified copy with the state board of education.  The 
withdrawal shall be effective on the June 30 following receipt 
by the board of directors of written notification of the 
withdrawal at least six months prior to June 30.  
Notwithstanding the withdrawal, the proportionate share of any 
expenses already certified to the withdrawing school district or 
nonpublic school administrative unit for the ECSU shall be paid 
to the ECSU board. 
    (d) Notwithstanding paragraph (c), if a member school 
district of an education district withdraws from an ECSU to 
comply with subdivision 4, the school district's withdrawal is 
effective on June 30, following receipt by the board of 
directors of the district's written notification. 
    (e) The ECSU is a public corporation and agency and its 
board of directors may make application for, accept and expend 
private, state and federal funds that are available for programs 
of educational benefit approved by the state board of education 
in accordance with rules adopted by the state board of education 
pursuant to chapter 14.  The state board of education shall not 
distribute special state aid or federal aid directly to an ECSU 
in lieu of distribution to a school district within the ECSU 
which would otherwise qualify for and be entitled to this aid 
without the consent of the school board of that district. 
    (e) (f) The ECSU is a public corporation and agency and as 
such, no earnings or interests of the ECSU may inure to the 
benefit of an individual or private entity. 
    Sec. 19.  Minnesota Statutes 1989 Supplement, section 
124.155, subdivision 2, is amended to read: 
    Subd. 2.  [ADJUSTMENT TO AIDS.] The amount specified in 
subdivision 1 shall be used to adjust the following state aids 
and credits in the order listed: 
    (a) general education aid authorized in section sections 
124A.23 and 32; 
    (b) secondary vocational aid authorized in section 124.573; 
    (c) special education aid authorized in section 124.32; 
    (d) secondary vocational aid for handicapped children 
authorized in section 124.574; 
    (e) aid for pupils of limited English proficiency 
authorized in section 124.273; 
    (f) transportation aid authorized in section 124.225; 
    (g) community education programs aid authorized in section 
124.271 124.2713; 
    (h) adult education aid authorized in section 124.26; 
    (i) early childhood family education aid authorized in 
section 124.2711; 
    (j) capital expenditure aid authorized in sections 124.243, 
124.244, and 124.83; 
    (k) education district aid according to section 124.2721; 
    (l) secondary vocational cooperative aid according to 
section 124.575; 
    (m) 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; 
     (n) 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; 
    (o) homestead and agricultural credit aid and disparity 
reduction aid authorized in section 273.1398, subdivision 2; and 
    (p) attached machinery aid authorized in section 273.138, 
subdivision 3.  
    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. 20.  Minnesota Statutes 1988, section 124.195, 
subdivision 10, is amended to read: 
    Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
subdivisions 8 and 9, each fiscal year, all education aids and 
credits in this chapter and chapters 121, 123, 124A, 124B, 125, 
126, 134, and section 273.1392, except post-secondary vocational 
shall be paid at 85 percent of the estimated entitlement during 
the fiscal year of the entitlement, unless a higher rate has 
been established according to section 121.904, subdivision 4d.  
The amount of the actual entitlement, after adjustment for 
actual data, minus the payments made during the fiscal year of 
the entitlement shall be paid as the final adjustment payment 
according to subdivision 6. 
    Sec. 21.  Minnesota Statutes 1989 Supplement, section 
124.2721, is amended to read: 
    124.2721 [EDUCATION DISTRICT REVENUE.] 
    Subdivision 1.  [ELIGIBILITY.] An education district is 
eligible for education district revenue if the department 
certifies that it meets the requirements of sections 122.91, 
subdivisions 3 and 4, and 122.945.  The pupil units of a school 
district that is a member of intermediate district No. 287, 916, 
or 917 may not be used to obtain revenue under this section.  
The pupil units of a school district may not be used to obtain 
revenue under this section and section 124.575. 
    Subd. 2.  [REVENUE.] Each year the education district board 
shall certify to the department of education the amount of 
education district revenue to be raised.  Revenue for the 
Education district revenue shall be the lesser of:  
    (1) $60 times the actual pupil units in the education 
district, or 
    (2) the amount certified by the education district board.; 
or 
    (2) the sum of: 
    (i) $60 in basic education district revenue; and 
    (ii) $50 for education districts authorized to receive 
revenue under section 36, subdivision 2, 
times the actual pupil units in the education district.  
    Subd. 3.  [LEVY.] The education district levy is equal to 
the following:  
    (1) the education district revenue according to subdivision 
2, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted gross tax capacity for taxes 
payable in 1990 and adjusted net tax capacity for taxes payable 
in 1991 and thereafter of the education district divided by the 
number of actual pupil units in the education district to an 
amount equal to $60 the sum of subdivision 2, clause (2), items 
(i) and (ii) for which the education district is eligible 
divided by 1.5 percent for taxes payable in 1990 and 1.87 
percent for taxes payable in 1991 and thereafter.  
    The department of education shall allocate the levy amount 
proportionately among the member districts based on adjusted tax 
capacity.  The member districts shall levy the amount allocated. 
    Subd. 3a.  [REVENUE TRANSFER.] Each year a member district 
shall transfer revenue to the education district board according 
to this subdivision.  By June 20 and November 30 of each year, 
an amount shall be transferred equal to:  
    (1) 50 percent times 
    (2) the amount certified in subdivision 3 minus transition 
homestead and agricultural credit aid allocated for that levy 
according to section 273.1398, subdivision 6.  
    Subd. 4.  [AID.] The aid for an education district equals 
its education district revenue minus its education district 
levy, times the ratio of the actual amount levied to the 
permitted levy. 
    Subd. 5.  [USES OF REVENUE.] Education district revenue is 
under the control of the education district board.  Education 
district revenue must be used by the education district board to 
provide educational programs according to the agreement adopted 
by the education district board, as required by section 122.94.  
     The education district board may pay to member school 
districts a part of the education district revenue received by 
the education district under this section only for programs that 
are (1) available to all member districts, and (2) included in 
the five-year plan under section 122.945. 
    Subd. 6.  [CONSOLIDATION.] If all member districts of an 
education district receiving revenue under this section or a 
group of member districts of an education district receiving 
revenue under this section that would qualify as an education 
district under section 122.91, subdivision 3, consolidate into a 
single independent school district by proceedings taken in 
accordance with section 122.23, that consolidated district may 
continue to receive education district revenue according to this 
section. 
    Sec. 22.  Minnesota Statutes 1989 Supplement, section 
124.2725, subdivision 3, is amended to read: 
    Subd. 3.  [COOPERATION AND COMBINATION LEVY.] To obtain 
cooperation and combination revenue, a district may levy an 
amount equal to the cooperation and combination revenue 
multiplied by the lesser of one or the following ratio: 
    (1) the quotient derived by dividing the adjusted gross net 
tax capacity for the district in the year preceding the year the 
levy is certified by the actual pupil units in the district for 
the year to which the levy is attributable, to 
    (2) the percentage, specified in subdivision 4, of the 
equalizing factor for the school year to which the levy is 
attributable. 
    Sec. 23.  Minnesota Statutes 1989 Supplement, section 
124.2725, subdivision 4, is amended to read: 
    Subd. 4.  [INCREASING LEVY.] (a) For districts that combine 
after one year of cooperation, the percentage in subdivision 3, 
clause (2), shall be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the first year of combination; 
    (3) 50 percent for the second year of combination; and 
    (4) 25 percent for the third year of combination. 
    (b) For districts that combine after two years of 
cooperation, the percentage in subdivision 3, clause (2), shall 
be: 
    (1) 100 percent for the first year of cooperation; 
    (2) 75 percent for the second year of cooperation; 
    (3) 50 percent for the first year of combination; and 
    (4) 25 percent for the second year of combination. 
    Sec. 24.  Minnesota Statutes 1989 Supplement, section 
124.2725, subdivision 5, is amended to read: 
    Subd. 5.  [COOPERATION AND COMBINATION AID.] (a) Districts 
that combine after one year of cooperation shall receive 
cooperation and combination aid for the first year of 
cooperation and three years of combination.  Cooperation and 
combination aid is equal to the difference between the 
cooperation and combination revenue and the cooperation and 
combination levy.  Aid shall not be paid after three years of 
combining.  
    (b) Districts that combine after two years of cooperation 
shall receive cooperation and combination aid for the first two 
years of cooperation and the first two years of combination,.  
Cooperation and combination aid is equal to the difference 
between the cooperation and combination revenue and the 
cooperation and combination levy.  Aid shall not be paid after 
two years of combining. 
    Sec. 25.  Minnesota Statutes 1989 Supplement, section 
124.2725, subdivision 8, is amended to read: 
    Subd. 8.  [PERMANENT REVENUE.] (a) For the third year of 
combination and thereafter, a combined district that is not a 
member of an education district that receives revenue under 
section 124.2721 may levy an amount equal to the cooperation and 
combination revenue, defined in subdivision 2. the lesser of 
    (i) $50 times the actual pupil units in the combined 
district; or 
    (ii) $50,000.  
    (b) A combined district that is a member of an education 
district receiving revenue under section 124.2721 must not 
receive revenue under this subdivision. 
    Sec. 26.  Minnesota Statutes 1989 Supplement, section 
124.2725, is amended by adding a subdivision to read: 
    Subd.  16.  [EXCLUSION FROM FUND BALANCE.] Revenue received 
by a district under this section for each year of cooperation 
and the first three years of combination shall be excluded from 
the net unreserved operating fund balance, for the purposes of 
section 124A.26.  
    Sec. 27.  Minnesota Statutes 1988, section 124.494, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [REORGANIZING DISTRICTS.] A school district that 
is a member of a joint powers board established under 
subdivision 2 and that is planning to reorganize under section 
122.21, 122.22, or 122.23 must notify the joint powers board one 
year in advance of the effective date of the reorganization.  
Notwithstanding section 471.59 or any other law to the contrary, 
the board of a district that reorganizes under section 122.21, 
122.22, or 122.23 may appoint representatives to the joint 
powers board who will serve on the joint powers board for two 
years after the effective date of the reorganization if 
authorized in the agreement establishing the joint powers board 
to govern the cooperative secondary facility.  These 
representatives shall have the same powers as representatives of 
any other school district under the joint powers agreement. 
    Sec. 28.  [124B.01] [ELIGIBILITY.] 
    Education districts with a collective bargaining provision 
in the education district agreement under section 10, must 
certify general education revenue for all member districts in 
the education district.  A member district of an education 
district that certifies general education revenue may levy only 
the amount allocated by the department of education for general 
education. 
    Sec. 29.  [124B.02] [DEFINITIONS.] 
    Except as otherwise specified in this chapter, general 
education revenue for eligible education districts must be 
determined under chapters 124 and 124A, as though an education 
district is a school district. 
    Sec. 30.  [124B.03] [REFERENDUM LEVIES.] 
    Subdivision 1.  [MEMBER DISTRICT REFERENDUM LEVIES.] (a) As 
of the date that an education district first certifies general 
education revenue, the authorization for a referendum levy 
previously approved by the voters of a member district in that 
education district under section 124A.03 is canceled. 
    (b) The education district may certify to the department of 
education an amount equal to the combined dollar amount of the 
referendum authorized by each of the member districts for the 
year before the date that the education district first certifies 
general education revenue, unless the amount of revenue that the 
education district may certify is modified under subdivision 2. 
    (c) If the referendum levy authorizations for each of the 
member districts is limited to a specified number of years, the 
referendum levy authorization for the education district may 
continue for a period of time equal to the longest period 
authorized for any member district.  If the referendum levy 
authorization of any member district is not limited to a 
specified number of years, the referendum levy authorization for 
the education district is not limited to a specified number of 
years. 
    Subd. 2.  [REFERENDUM LEVY.] (a) The amount of general 
education revenue certified by an education district board under 
section 31 may be increased in any amount that is approved by 
the voters of the education district at a referendum called for 
the purpose.  The referendum may be called by the education 
district board or must be called by the education district board 
upon written petition of qualified voters of the education 
district.  The referendum must be held on the first Tuesday 
after the first Monday in November.  The ballot shall state the 
maximum amount of the increased levy as a percentage of net tax 
capacity, the amount that will be raised by that tax capacity 
rate in the first year it is to be levied, and that the tax 
capacity rate must be used to finance school operations.  The 
ballot shall designate a specific number of years for which the 
referendum authorization applies.  The ballot may contain a text 
with the information required in this subdivision and a question 
stating substantially the following:  
    "Shall the increase in the levy proposed by (petition to) 
the board of ........., Education District No. .., be approved?" 
    (b) If approved, the amount provided by the approved tax 
capacity rate applied to the net tax capacity for the year 
before the year the levy is certified is authorized for 
certification for the number of years approved, if applicable, 
or until revoked or reduced by the voters of the education 
district at a later referendum. 
    (c) The education district board shall prepare and deliver 
by first class mail at least 15 days but no more than 30 days 
prior to the day of the election to each taxpayer at the address 
listed on each member district's current year's assessment roll, 
a notice of the referendum and the proposed levy increase.  For 
the purpose of giving mailed notice under this subdivision, 
owners shall be those shown to be owners on the records of the 
county auditor or, in any county where tax statements are mailed 
by the county treasurer, on the records of the county 
treasurer.  Every property owner whose name does not appear on 
the records of the county auditor or the county treasurer shall 
be deemed to have waived this mailed notice unless the owner has 
requested in writing that the county auditor or county 
treasurer, as the case may be, include the name on the records 
for this purpose.  The notice must project the anticipated 
amount of increase in annual dollars and annual percentage for 
typical residential homesteads, agricultural homesteads, 
apartments, and commercial-industrial property within the 
education district. 
    (d) The notice must include the following statement:  "In 
1989, the legislature reduced property taxes for education by 
increasing the state share of funding for education.  However, 
state aid for cities and townships was reduced by a 
corresponding amount.  As a result, property taxes for cities 
and townships may increase.  Passage of this referendum will 
result in an increase in your property taxes." 
    (e) A referendum on the question of revoking or reducing 
the increased levy amount authorized under paragraph (a) may be 
called by the education district board and must be called by the 
education district board upon the written petition of qualified 
voters of the education district.  A levy approved by the voters 
of the education district under paragraph (a) must be made at 
least once before it is subject to a referendum on its 
revocation or reduction for subsequent years.  Only one election 
may be held to revoke or reduce a levy for any specific year and 
for later years. 
    (f) A petition authorized by paragraph (a) or (e) shall be 
effective if signed by a number of qualified voters in excess of 
15 percent of the average number of voters at the two most 
recent districtwide school elections in all the member school 
districts.  A referendum invoked by petition must be held on the 
day specified in paragraph (a).  
    (g) The approval of 50 percent plus one of those voting on 
the question is required to pass a referendum. 
    (h) Within 30 days after the education district holds a 
referendum according to this subdivision, the education district 
shall notify the commissioner of education of the results of the 
referendum. 
    (i) The department shall allocate the amount certified by 
the education district board under paragraph (a) or subdivision 
1 proportionately among the member districts based on net tax 
capacity.  The member districts shall levy the amount allocated. 
    (j) Each year, a member district shall transfer referendum 
revenue to the education district board according to this 
subdivision.  By June 20 and November 30 of each year, an amount 
must be transferred equal to: 
    (1) 50 percent times 
    (2) the amount certified in this subdivision minus 
homestead and agricultural credit aid allocated for that levy 
according to section 273.1398, subdivision 6. 
    Sec. 31.  [124B.10] [GENERAL EDUCATION REVENUE.] 
    Subdivision 1.  [GENERAL EDUCATION REVENUE.] The general 
education revenue for an education district that negotiates a 
collective bargaining agreement under section 10, equals the sum 
of the education district's basic revenue, compensatory 
education revenue, training and experience revenue, secondary 
sparsity revenue, and elementary sparsity revenue. 
    Subd. 2.  [TRAINING AND EXPERIENCE REVENUE.] The training 
and experience index for an education district equals the 
weighted average of the ratios assigned to the full-time 
equivalent teachers in the education district. 
    Sec. 32.  [124B.20] [GENERAL EDUCATION LEVY AND AID.] 
    Subdivision 1.  [GENERAL EDUCATION LEVY.] To obtain general 
education revenue, an education district with a collective 
bargaining provision under section 10, may certify to the 
department of education an amount not to exceed the general 
education tax capacity rate times the adjusted net tax capacity 
of the education district for the preceding year.  The 
department of education must allocate the levy amount 
proportionately among the member districts based on adjusted net 
tax capacity.  The member districts must levy the amount 
allocated.  The sum of the levies allocated to the member 
districts is defined as the "general education levy" for an 
education district.  An education district general education 
levy is subject to the same adjustments as a school district 
general education levy under chapter 124A. 
    Subd. 2.  [REVENUE TRANSFER.] Each year, a member district 
of an education district that certifies general education 
revenue for all member districts must transfer general education 
revenue to the education district board according to this 
subdivision.  By June 20 and November 30 of each year, an amount 
must be transferred equal to: 
    (1) 50 percent times 
    (2) the amount certified in subdivision 1 minus homestead 
and agricultural credit aid allocated for that levy according to 
section 273.1398, subdivision 6. 
    Subd. 3.  [GENERAL EDUCATION AID.] General education aid 
equals the general education revenue under section 31, 
subdivision 1, minus the general education levy under 
subdivision 1 of this section.  General education aid for an 
education district that certifies revenue under this section 
must be paid to the education district. 
    Sec. 33.  Minnesota Statutes 1988, section 275.125, 
subdivision 4, is amended to read: 
    Subd. 4.  [MISCELLANEOUS LEVY AUTHORIZATIONS.] (a) A school 
district may levy the amounts necessary to make payments for 
bonds issued and for interest thereon, including the bonds and 
interest thereon, issued as authorized by Minnesota Statutes 
1974, section 275.125, subdivision 3, clause (7)(C); the amounts 
necessary for repayment of debt service loans and capital loans; 
the amounts necessary to pay the district's obligations under 
section 6.62; the amount authorized for liabilities of dissolved 
districts pursuant to section 122.45; the amounts necessary to 
pay the district's obligations under section 268.06, subdivision 
25; the amounts necessary to pay for job placement services 
offered to employees who may become eligible for benefits 
pursuant to section 268.08; the amounts necessary to pay the 
district's obligations under section 127.05; the amounts 
authorized by section 122.531; and the amounts necessary to pay 
the district's obligations under section 122.533; and for 
severance pay required by section 6. 
    (b) An education district that negotiates a collective 
bargaining agreement for teachers under section 10 may certify 
to the department of education the amount necessary to pay all 
of the member districts' obligations and the education 
district's obligations under section 268.06, subdivision 25. 
    The department of education must allocate the levy amount 
proportionately among the member districts based on adjusted net 
tax capacity.  The member districts must levy the amount 
allocated. 
    (c) Each year, a member district of an education district 
that levies under this subdivision must transfer the amount of 
revenue certified under paragraph (b) to the education district 
board according to this subdivision.  By June 20 and November 30 
of each year, an amount must be transferred equal to: 
    (1) 50 percent times 
    (2) the amount certified in paragraph (b) minus homestead 
and agricultural credit aid allocated for that levy according to 
section 273.1398, subdivision 6. 
    Sec. 34.  Laws 1989, chapter 329, article 6, section 53, 
subdivision 3, is amended to read: 
    Subd. 3.  [COOPERATION AND COMBINATION AID.] For aid for 
districts that cooperate and combine there is appropriated: 
    $75,000 $1,192,000 ..... 1991. 
    Sec. 35.  [APPROVAL FOR COOPERATION AND COMBINATION OF TWO 
DISTRICTS.] 
    Notwithstanding Minnesota Statutes, section 122.241, 
subdivision 3, by July 1, 1991, the state board of education may 
approve the combination of school districts in clause (1) or (2) 
if the state board determines that the combination would be in 
the best interests of the pupils of the districts and that no 
other contiguous district is willing to enter into an agreement 
under Minnesota Statutes, sections 122.241 to 122.248, with the 
districts: 
    (1) independent school districts Nos. 21, Audubon, and 24, 
Lake Park; 
    (2) independent school districts Nos. 597, Erskine, and 
603, McIntosh. 
    Sec. 36.  [ADDITIONAL REVENUE FOR EDUCATION DISTRICT 
BARGAINING.] 
    Subdivision 1.  [APPLICATION FOR ADDITIONAL EDUCATION 
DISTRICT REVENUE.] An education district with a collective 
bargaining provision under section 10, subdivision 1, may apply 
to the commissioner of education for additional education 
district revenue under Minnesota Statutes, section 124.2721, 
subdivision 2.  To apply for additional revenue, the education 
district board must: 
    (1) submit the plan required under section 10, subdivision 
2, for approval to the commissioner of education and the 
commissioner of mediation services by August 1, 1990; and 
    (2) agree to negotiate collective bargaining agreements for 
teachers on behalf of all member districts for at least three 
consecutive two-year periods beginning July 1, 1991. 
    Subd. 2.  [APPROVAL FOR ADDITIONAL REVENUE.] The 
commissioner of education and the commissioner of mediation 
services may jointly select up to two education districts that 
apply under subdivision 1 to receive additional education 
district revenue.  The commissioners must make their joint 
selection based on the history of labor-management relations 
within the member districts of the education district and the 
objective of stable and constructive labor-management relations 
for the future. 
    By August 31, 1990, the commissioner of education must 
notify each education district that applies for additional 
revenue under subdivision 1 that the education district: 
    (1) is approved to receive the additional education 
district revenue; 
    (2) is not approved to receive the additional education 
district revenue; or 
    (3) may submit additional information as requested by the 
commissioner of education or the commissioner of mediation 
services. 
    By December 1, 1990, the commissioner of education must 
notify each education district that submits additional 
information under clause (3) whether the education district is 
approved to receive additional education district revenue under 
Minnesota Statutes, section 124.2721, subdivision 2.  An 
education district jointly selected by the commissioners will 
receive additional education district revenue under Minnesota 
Statutes, section 124.2721, subdivision 2, for no more than six 
years. 
    Subd. 3.  [EDUCATION DISTRICT BARGAINING REPORT.] By 
February 1, 1991, the commissioner of mediation services must 
report to the legislative commission on employee relations and 
the education committees of the legislature any changes in law 
required for an education district to effectively implement 
education district bargaining under this section. 
    Sec. 37.  [EFFECTIVE DATE.] 
    Sections 1, 2, 7, 13, 16, 17, and 18 are effective the day 
after their final enactment. 
    Sections 9, paragraph (b), 14, and 15 are retroactively 
effective July 1, 1989. 

                               ARTICLE 7 

                        OTHER EDUCATION PROGRAMS 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
121.111, subdivision 1, is amended to read: 
    121.111 [OFFICE OF EDUCATIONAL LEADERSHIP.] 
    Subdivision 1.  [ESTABLISHMENT MAINTAIN OFFICE.] 
The commissioner shall maintain an office of educational 
leadership is established within the department of education.  
The purpose of the office is to assist school districts, 
education districts, and other education organizations in 
developing education policies that maximize the learning of all 
pupils. 
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
121.111, subdivision 2, is amended to read: 
    Subd. 2.  [OFFICE STRUCTURE MANAGEMENT.] The assistant 
commissioner of instructional effectiveness, in consultation 
with the assistant commissioner of development and partnership 
effectiveness, shall administer the office of educational 
leadership.  A director in the unclassified service appointed by 
the assistant commissioner of instructional effectiveness shall 
manage the office. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, 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 arrange enter 
into an agreement with a post-secondary institution for 
secondary or post-secondary nonsectarian courses for to be 
taught at a secondary pupils that are offered by a 
post-secondary institution school or a nonsectarian 
post-secondary institution. 
    Sec. 4.  Minnesota Statutes 1988, section 123.36, 
subdivision 5, is amended to read: 
    Subd. 5.  The board may authorize the use of any 
schoolhouses in the district for divine worship, Sunday schools, 
public meetings, elections, post-secondary instruction, and such 
other community purposes as that, in its judgment, will not 
interfere with their use for school purposes; but.  Before 
permitting such use any of these uses, the board may require a 
cash or corporate surety bond in a reasonable amount conditioned 
for the proper use of such the schoolhouse, the payment of all 
rent, and the repair of all damage occasioned by such the use, 
and.  It may determine a reasonable charge and collect for the 
use of the district from the persons using such the schoolhouse 
such reasonable compensation as it may fix. 
    It may authorize the use of any schoolhouses or buildings 
in and of owned or leased by the district for the holding of 
primaries, elections, registrations, and all action in 
connection therewith in such manner as in its judgment, related 
activities if the board determines that the use will not 
interfere with their use for school purposes.  It may impose 
such reasonable regulations and conditions upon such the use as 
may seem necessary and proper. 
    Sec. 5.  Minnesota Statutes 1988, section 123.9361, is 
amended to read:  
    123.9361 [ADMINISTRATIVE COSTS.] 
    Each year, a school district or intermediary service area 
may claim and receive from the department of education an 
additional sum for the actual cost of administration of sections 
123.933 and 123.935, which shall not exceed an amount equal to 
five percent of the district's or area's allocation for that 
year pursuant to those sections.  
    Sec. 6.  Minnesota Statutes 1988, section 123.947, is 
amended to read:  
    123.947 [RESTRICTIONS TO PREVENT IMPROPER USE OF 
INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
    (a) The department of education shall assure that textbooks 
and individualized instructional materials loaned to nonpublic 
school pupils are secular, neutral, nonideological and that they 
are incapable of diversion for religious use.  
    (b) Textbooks and individualized instructional materials 
shall not be used in religious courses, devotional exercises, 
religious training or any other religious activity.  
    (c) Textbooks and individualized instructional materials 
shall be loaned only to individual pupils upon the request of a 
parent or guardian or the pupil on a form designated for this 
use by the department of education.  The request forms shall 
provide for verification by the parent or guardian or pupil that 
the requested textbooks and individualized instructional 
materials are for the use of the individual pupil in connection 
with a program of instruction in the pupil's elementary or 
secondary school.  
    (d) The department of education or the servicing school 
district or the intermediary service area shall take adequate 
measures to ensure an accurate and periodic inventory of all 
textbooks and individualized instructional materials loaned to 
elementary and secondary school pupils attending nonpublic 
schools.  The state board of education shall promulgate rules 
under the provisions of chapter 14 to terminate the eligibility 
of any nonpublic school pupil if the department or the servicing 
school district or intermediary service area of education 
determines, after notice and opportunity for hearing, that the 
textbooks or individualized instructional materials have been 
used in a manner contrary to the provisions of section 123.932, 
subdivision 1e, 123.933 or this section or any rules promulgated 
by the state board of education.  
    (e) Nothing contained in section 123.932, subdivision 1e, 
123.933 or this section shall be construed to authorize the 
making of any payments to a nonpublic school or its faculty, 
staff or administrators for religious worship or instruction or 
for any other purpose.  
    Sec. 7.  [125.188] [ALTERNATIVE PREPARATION LICENSING.] 
    Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
that is an alternative to the post-secondary teacher preparation 
program as a means to acquire an entrance license is 
established.  The program may be offered in any instructional 
field. 
    (b) To participate in the alternative preparation program, 
the candidate must: 
    (1) have a bachelor's degree; 
    (2) pass an examination of skills in reading, writing, and 
mathematics as required by section 125.05; 
    (3) have been offered a job to teach in a school district, 
group of districts, or an education district approved by the 
board of teaching to offer an alternative preparation licensure 
program; 
    (4)(i) have a college major in the subject area to be 
taught; or 
    (ii) have five years of experience in a field related to 
the subject to be taught; and 
    (5) document successful experiences working with children. 
    (c) An alternative preparation license is of one year 
duration and is issued by the board of teaching to participants 
on admission to the alternative preparation program.  
    Subd. 2.  [CHARACTERISTICS.] The alternative preparation 
program has the following characteristics: 
    (1) staff development conducted by a resident mentorship 
team made up of administrators, teachers, and post-secondary 
faculty members; 
    (2) an instruction phase involving intensive preparation of 
a candidate for licensure before the candidate assumes 
responsibility for a classroom; 
    (3) formal instruction and peer coaching during the school 
year; 
    (4) assessment, supervision, and evaluation of a candidate 
to determine the candidate's specific needs and to ensure 
satisfactory completion of the program; 
    (5) a research based and results oriented approach focused 
on skills teachers need to be effective; 
    (6) assurance of integration of education theory and 
classroom practices; and 
    (7) the shared design and delivery of staff development 
between school district personnel and post-secondary faculty. 
    Subd. 3.  [PROGRAM APPROVAL.] (a) The board of teaching 
shall approve alternative preparation programs based on criteria 
adopted by the board, after receiving recommendations from an 
advisory task force appointed by the board. 
    (b) An alternative preparation program at a school 
district, group of schools, or an education district must be 
affiliated with a post-secondary institution that has a teacher 
preparation program. 
    Subd. 4.  [APPROVAL FOR STANDARD ENTRANCE LICENSE.] The 
resident mentorship team must prepare for the board of teaching 
an evaluation report on the performance of the alternative 
preparation licensee during the school year and a positive or 
negative recommendation on whether the alternative preparation 
licensee shall receive a standard entrance license. 
    Subd. 5.  [STANDARD ENTRANCE LICENSE.] The board of 
teaching shall issue a standard entrance license to an 
alternative preparation licensee who has successfully completed 
the school year in the alternative preparation program and who 
has received a positive recommendation from the licensee's 
mentorship team. 
    Subd. 6.  [QUALIFIED TEACHER.] A person with a valid 
alternative preparation license is a qualified teacher within 
the meaning of section 125.04. 
    Sec. 8.  Minnesota Statutes 1988, section 125.231, 
subdivision 6, is amended to read:  
    Subd. 6.  [REPORT TO THE LEGISLATURE.] By January 1, 1988 
1991, the commissioner of education shall report to the 
legislature on how the teacher mentoring task force 
recommendations for a system of incentives are being implemented 
at the state and local level to assure that highly capable 
individuals are attracted to and retained in the teaching 
profession and shall recommend ways to expand and enhance the 
responsibilities of teachers.  
    By January 1 of 1989 and 1990 and 1991, the commissioner of 
education shall report to the legislature on the design, 
development, implementation, and evaluation of the mentorship 
program.  
    Sec. 9.  Minnesota Statutes 1989 Supplement, section 
129.128, is amended to read: 
    129.128 [COMMISSIONER TO REPORT ON LEAGUE TO LEGISLATURE.] 
    Subdivision 1.  [ANNUALLY ANNUAL REPORT.] The commissioner 
of education must report to the legislature before each regular 
session on the activities of the league.  The report must 
contain at least: 
    (1) an accurate and concise summary of the annual financial 
and compliance audit prepared by the state auditor that includes 
information about the compensation of and the expenditures by 
the executive director of the league and league staff; 
    (2) a list of all complaints filed with the league and all 
lawsuits filed against the league and the disposition of those 
complaints and lawsuits; 
    (3) an explanation of the executive director's performance 
review; 
    (4) information about the extent to which the league has 
implemented its affirmative action policy, its comparable worth 
plan, and its sexual harrassment and violence policy and rules; 
and 
    (5) an evaluation of any proposed changes in league policy. 
    Subd. 2.  [URGE NEEDED LAWS RECOMMEND LAWS.] The 
commissioner must recommend to the legislature whether any 
legislation is made necessary by league activities.  
    Sec. 10.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 6i, is amended to read: 
    Subd. 6i.  [RULE COMPLIANCE LEVY.] Each year a district 
that is required to implement a plan according to the 
requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
may levy an amount not to exceed a gross tax capacity rate of 
.80 percent times the adjusted gross tax capacity of the 
district for taxes payable in 1990 or a net tax capacity rate of 
1.0 2.0 percent times the adjusted net tax capacity of the 
district for taxes payable in 1991 and thereafter.  Independent 
school district No. 625, St. Paul, may levy according to this 
subdivision and subdivision 6e.  Notwithstanding section 
121.904, the entire amount of this levy shall be recognized as 
revenue for the fiscal year in which the levy is certified.  
This levy shall not be considered in computing the aid reduction 
under section 124.155.  
    Sec. 11.  Minnesota Statutes 1989 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, and subsequent years, the increase 
over the amount established for the prior year shall be 
determined according to the increase in the implicit price 
deflator as provided in section 298.24, subdivision 1, paragraph 
(a).  Each district shall receive the product of: 
    (i) $150 $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 0.04231 percent times the district's taxable market 
value in the second previous year; times 
    (ii) the lesser of: 
    (A) one, or 
    (B) the ratio of the amount certified pursuant to section 
124A.03, subdivision 2, in the previous year, to the product of 
0.04231 percent times the district's taxable market value 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 $150 $175 per pupil unit shall be reduced 
uniformly so as not to exceed the funds available.  Any amounts 
received by a qualifying school district in any fiscal year 
pursuant to paragraph (d) shall not be applied to reduce general 
education aid which the district receives pursuant to section 
124A.23 or the permissible levies of the district.  Any amount 
remaining after the payments provided in this paragraph shall be 
paid to the commissioner of iron range resources and 
rehabilitation who shall deposit the same in the taconite 
environmental protection fund and the northeast Minnesota 
economic protection trust fund as provided in subdivision 11. 
    Each district receiving money according to this paragraph 
shall reserve $25 times the number of pupil units in the 
district.  It may use the money only for outcome-based learning 
programs that enhance the academic quality of the district's 
curriculum.  The programs must be approved by the commissioner 
of education.  
    (e) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    Sec. 12.  Laws 1984, chapter 463, article 6, section 15, 
subdivision 2, is amended to read: 
    Subd. 2.  [USE OF PROCEEDS.] The proceeds of this levy 
shall be used only for cash flow requirements and shall not be 
used to supplement district revenues or income for the purposes 
of increasing the district's expenditures or budgets. (a) 
Independent school district No. 712, Mountain Iron-Buhl, shall 
establish on July 1, 1990, a reserved account in the general 
fund.  The balance in the account shall equal the unreserved 
undesignated fund balance in the operating funds as of June 30, 
1990, plus the total unreserved fund balance in the operating 
funds as of July 30, 1985, plus all levy proceeds authorized 
under subdivision 1, as amended.  In fiscal year 1991 and each 
year thereafter, the balance in this account shall be adjusted 
by the levy authorized in subdivision 1.  
    (b) The proceeds of this levy shall be used only for cash 
flow requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets. 
    Sec. 13.  Laws 1989, chapter 329, article 6, section 53, 
subdivision 6, is amended to read: 
   Subd. 6.  [TELECOMMUNICATIONS GRANT.] For a grant grants of 
up to $20,000 each to independent school districts Nos. 356, 
353, 444, 441, 524, 564, 592, 440, 678, 676, 682, 690, 390, 593, 
595, 630, and 600, 599, 447, 742, 627, 628, and 454 to support a 
cooperative educational technology program programs: 
    $340,000.... 1990 1991. 
    Sec. 14.  Laws 1989, chapter 329, article 7, section 24, 
subdivision 6, is amended to read: 
    Subd. 6.  [CAREER TEACHER AID.] For career teacher aid:  
    $1,000,000 $750,000 ..... 1990 
    This appropriation is available until June 30, 1991.  
    Notwithstanding Minnesota Statutes 1989 Supplement, section 
124.276, subdivision 2, the amount available for fiscal year 
1991 may be used for the increased district contribution to the 
teachers' retirement association and to FICA resulting from the 
portion of the teaching contract that is in addition to the 
standard teaching contract of the district.  
    Up to $5,000 may be used for the state career teacher task 
force. 
    Sec. 15.  Laws 1989, chapter 329, article 11, section 15, 
subdivision 2, is amended to read:  
    Subd. 2.  [TEACHER MENTORSHIP.] (a) For grants To develop 
mentoring programs in school districts according to Minnesota 
Statutes, section 125.231:  
    $250,000 ..... 1990 
    $250,000 ..... 1991 
    Any unexpended balance in the first year does not cancel 
and is available for the second year.  
    (b) Of the amounts in paragraph (a), $110,000 each year is 
to provide approximately $10,000 each year for each existing 
demonstration site to refine its program and disseminate 
services and materials to schools that are interested in 
developing a mentoring program.  The demonstration sites must 
provide exemplary mentoring processes and assist the department 
of education in working with new sites that are planning to 
adopt or adapt specific mentorship programs or components of 
those programs.  The department shall encourage cooperation with 
career teacher programs. 
    (c) Of the amounts in paragraph (a), $90,000 each year is 
for start-up money of up to $5,000 each for a minimum of 18 new 
districts or groups of districts to adopt or adapt an existing 
mentorship program for five or more probationary teachers.  The 
criteria and process in Minnesota Statutes, section 125.231, 
subdivisions 3 and 4, must be used.  Participants from the 
adoption grant sites must attend regional and statewide training 
sessions and visit and collaborate with the exemplary sites.  
    (d) Of the amounts in paragraph (a), $50,000 each year is 
to evaluate the program, to put on regional and statewide 
events, including conferences, seminars, and for meetings to 
provide staff development and technical assistance for district 
teams funded to adopt or adapt components implemented by 
existing pilot sites.  The events must be available to districts 
interested in developing a mentorship program without applying 
for an adoption grant.  The department may contract with 
districts having exemplary sites and others to develop 
guidelines and materials and provide staff development.  Fees 
may be charged for meals, materials, and the like.  
    Sec. 16.  Laws 1989, chapter 329, article 11, section 15, 
subdivision 12, is amended to read:  
    Subd. 12.  [ACADEMIC EXCELLENCE FOUNDATION.] For the 
academic excellence foundation according to Minnesota Statutes, 
section 121.612:  
    $160,000 ..... 1990 
    $160,000 ..... 1991 
    Up to $50,000 each year is contingent upon the department's 
receipt match of $1 in the previous year from private sources 
consisting of either direct monetary contributions or in-kind 
contributions of related goods or services, for each $1 of the 
appropriation.  The commissioner of education must certify 
receipt of the money or documentation for the private matching 
funds or in-kind contributions.  The unencumbered balance from 
the amount actually appropriated from the contingent amount in 
1990 does not cancel but is available in 1991.  The amount 
carried forward must not be used to establish a larger annual 
base appropriation for later fiscal years. 
    Sec. 17.  Laws 1989, chapter 329, article 11, section 16, 
subdivision 2, is amended to read:  
    Subd. 2.  [FACULTY EXCHANGE.] For expenses incurred by 
elementary and secondary teachers participating participants in 
the faculty education exchange:  
    $25,000 ..... 1990 
    This appropriation is available until June 30, 1991. 
    Sec. 18.  Laws 1989, chapter 329, article 11, section 17, 
subdivision 2, is amended to read: 
    Subd. 2.  [FACULTY EXCHANGE.] For expenses incurred by 
elementary and secondary teachers participating participants in 
the faculty education exchange: 
     $25,000 ..... 1990
    The appropriation is available until June 30, 1991. 
    Sec. 19.  [SHAKOPEE; 1991 AID CALCULATIONS.] 
    Subdivision 1.  [ADJUSTMENTS.] For purposes of determining 
state aids for taxes payable in 1991, the fiscal disparity prior 
year adjustments in the city of Shakopee for taxes payable years 
1986, 1987, and 1988 shall not be recognized. 
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective the 
day following compliance by the Shakopee city council with 
Minnesota Statutes, section 645.021, subdivision 2.  
    Sec. 20.  [1989-1990 ABATEMENT AID.] 
    If a district qualifies for:  
    (1) general education aid for fiscal year 1990 only because 
of Laws 1989, chapter 329, article 1, section 6; or 
    (2) early childhood family education aid for fiscal year 
1990 only because of Laws 1989, chapter 329, article 4, section 
11; or 
    (3) community education aid only because of Laws 1989, 
chapter 329, article 4, section 12, subdivision 3a; 
it does not qualify for abatement aid for fiscal year 1990 under 
Minnesota Statutes, section 124.214, subdivision 2. 
    Sec. 21.  [SCHOOL OF EXCELLENCE.] 
    The board of directors of the Minnesota academic excellence 
foundation shall include in its 1991 annual report to the 
education committees of the legislature recommendations for 
making available to schools and districts statewide, a Minnesota 
school of excellence program that contains the following 
components: 
    (1) state standards of excellence; 
    (2) criteria for showing improvement in academic 
performance over time by schools or districts participating in 
the program; 
    (3) a detailed cost analysis of the program; 
    (4) an external review process to verify the contents of an 
application submitted by a participating school or district; and 
    (5) a funding mechanism for permitting participating 
schools or districts to assist other schools or districts 
interested in participating in the program. 
    Sec. 22.  [BOARD OF TEACHING APPROPRIATION.] 
    Subdivision 1.  [BOARD OF TEACHING.] The sums indicated in 
this section are appropriated from the general fund to the board 
of teaching in the fiscal year indicated. 
    Subd. 2.  [MENTORSHIP SITE GRANTS.] For grants for 
operating cooperative ventures between school district and 
post-secondary teacher preparation institutions: 
    $150,000 ..... 1991 
    An application for a grant must be made by the 
cooperative.  The funds must be used primarily to pay for 
coordination, instruction, and evaluation provided by the 
resident mentorship team. 
    Subd. 3.  [FELLOWSHIP GRANTS.] For fellowship grants to 
highly qualified minorities seeking alternative preparation for 
licensure: 
    $50,000 ..... 1991 
    A grant is not to exceed $5,000 with one-half paid each 
year for two years.  Grants must be awarded on a competitive 
basis by the board.  Grant recipients must agree to remain as 
teachers in the district for two years if they satisfactorily 
complete the alternative preparation program and if their 
contracts as probationary teachers are renewed. 
    Sec. 23.  ["WAY TO GROW" APPROPRIATION.] 
    $100,000 is appropriated in fiscal year 1991 from the 
general fund to the commissioner of state planning to award up 
to three grants under Minnesota Statutes, section 145.926.  The 
grants must go to eligible applicants located outside the 
seven-county metropolitan area.  Grant recipients must 
coordinate their programs with existing community-based programs 
serving children prebirth to age five.  Grant recipients may use 
up to two percent of this appropriation for administrative costs.
    This appropriation must not be used to establish a larger 
annual base appropriation for fiscal year 1992 and after. 
    Sec. 24.  [DEPARTMENT OF EDUCATION APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
indicated in this section are appropriated from the general fund 
to the department of education for the fiscal years designated.  
    Subd. 2.  [GRANTS FOR COOPERATIVE DESEGREGATION.] For 
grants to develop interdistrict school desegregation programs: 
    $200,000 ..... 1991.  
    The commissioner of education shall award grants to school 
districts to develop pilot interdistrict cooperative programs to 
reduce segregation, as defined in Minnesota Rules, part 
3535.0200, subpart 4, in school buildings.  
    To obtain a grant, a district that is required to submit a 
plan under Minnesota Rules, part 3535.0600, with the assistance 
of at least one adjacent district that is not required to submit 
a plan, shall submit an application to the commissioner.  
    The application shall contain a plan for:  
    (1) activities such as staff development, curriculum 
development, student leadership, student services, teacher and 
student exchanges, interdistrict meetings, and orientation for 
school boards, parents, and the community; 
    (2) implementation of the activities in clause (1) before 
possible student transfers occur; and 
    (3) possible voluntary transfer of students between 
districts beginning with the 1991-1992 school year.  
    A grant recipient shall submit a report about its 
activities and recommendations to the commissioner by December 
31, 1990.  The commissioner shall submit a report about the 
program to the education committees of the legislature by 
February 1, 1991.  
    Subd. 3.  [CHISHOLM SCHOOL DISTRICT GRANT.] For a grant for 
a leadership program in independent school district No. 695, 
Chisholm:  
    $30,000 ..... 1991. 
    Sec. 25.  [EFFECTIVE DATE.] 
    Subdivision 1.  Section 5 is retroactively effective July 
1, 1989.  
    Subd. 2.  Sections 1, 2, 7, 14, 15, 16, 17, 18, and 20 are 
effective the day following final enactment. 
    Subd. 3.  Section 12 is effective the day after compliance 
by the school board of independent school district No. 712 with 
Minnesota Statutes, section 645.021. 

                               ARTICLE 8 

                             MISCELLANEOUS 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
6.65, is amended to read: 
    6.65 [MINIMUM PROCEDURES FOR AUDITORS, PRESCRIBED.] 
    The state auditor shall prescribe minimum procedures and 
the audit scope for auditing the books, records, accounts, and 
affairs of local governments in Minnesota.  The minimum scope 
for audits of all local governments must include financial and 
legal compliance audits for fiscal years ending after January 
15, 1984.  Audits of all school districts shall include a 
determination of compliance with uniform financial accounting 
and reporting standards adopted by the state board of education 
according to section 121.902, subdivision 1.  The state auditor 
shall establish a task force to promulgate an audit guide for 
legal compliance audits.  The task force must include 
representatives of the state auditor, the attorney general, 
towns, cities, counties, school districts, and private sector 
public accountants. 
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
10A.01, subdivision 18, is amended to read: 
    Subd. 18.  "Public official" means any: 
    (a) member of the legislature; 
    (b) constitutional officer in the executive branch and the 
officer's chief administrative deputy; 
    (c) member, chief administrative officer or deputy chief 
administrative officer of a state board or commission which has 
at least one of the following powers:  (i) the power to adopt, 
amend or repeal rules, or (ii) the power to adjudicate contested 
cases or appeals; 
    (d) commissioner, deputy commissioner, or assistant 
commissioner of any state department as designated pursuant to 
section 15.01; 
    (e) individual employed in the executive branch who is 
authorized to adopt, amend or repeal rules or adjudicate 
contested cases; 
    (f) executive director of the state board of investment; 
    (g) executive director of the Indian affairs intertribal 
board; 
    (h) commissioner of the iron range resources and 
rehabilitation board; 
    (i) commissioner of mediation services; 
    (j) deputy of any official listed in clauses (e) to (i); 
    (k) judge of the workers' compensation court of appeals; 
    (l) administrative law judge or compensation judge in the 
state office of administrative hearings or referee in the 
department of jobs and training; 
    (m) solicitor general or deputy, assistant or special 
assistant attorney general; 
    (n) individual employed by the legislature as secretary of 
the senate, legislative auditor, chief clerk of the house, 
revisor of statutes, or researcher, legislative analyst, or 
attorney in the office of senate counsel and research, senate 
counsel, or house research; 
    (o) member or chief administrative officer of the 
metropolitan council, regional transit board, metropolitan 
transit commission, metropolitan waste control commission, 
metropolitan parks and open spaces commission, metropolitan 
airports commission or metropolitan sports facilities 
commission; 
    (p) the commissioner of gaming and director of each 
division in the department of gaming and the deputy director of 
the division of state lottery; or 
    (q) director of the division of gambling enforcement in the 
department of public safety; 
    (r) member or executive director of the higher education 
facilities authority; or 
    (s) member of the board of directors or president of the 
Minnesota world trade center corporation. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
119.04, subdivision 3, is amended to read: 
    Subd. 3.  [SALE OF CORPORATION.] The board of directors may 
sell all, substantially all, or part of the assets or any of the 
ownership of the corporation at a price and according to terms, 
approved by the commissioner of finance, that assure maximum 
benefit to the state of Minnesota.  When any part is sold, the 
board shall transfer the assets or ownership that is sold to the 
purchaser.  Upon the sale of all or substantially all of the 
assets or ownership of the corporation, the board of directors 
shall dispose of any remaining assets and dissolve the 
corporation. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
121.612, subdivision 3, is amended to read: 
    Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
the foundation shall consist of the commissioner of education, a 
member of the state board of education selected by the state 
board who shall serve as chair and 15 20 members to be appointed 
by the governor.  Of the 15 20 members appointed by the 
governor, six eight shall represent various a variety of 
education groups and nine 12 shall represent various a variety 
of business groups.  The commissioner of education shall serve 
as secretary for the board of directors and provide 
administrative support to the foundation.  An executive 
committee of the foundation board composed of the board officers 
and chairs of board committees, may only advise and make 
recommendations to the foundation board. 
    Sec. 5.  Minnesota Statutes 1989 Supplement, section 
121.612, subdivision 5, is amended to read: 
    Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
    (1) establish and collect membership fees; 
    (2) publish brochures or booklets relating to the purposes 
of the foundation and collect reasonable fees for the 
publications; 
    (3) receive money and, grants, and in-kind goods or 
services from nonstate sources for the purposes of the 
foundation; 
    (4) contract with consultants; and 
    (5) expend money for awards and other forms of recognition 
and appreciation. 
    Sec. 6.  Minnesota Statutes 1988, section 121.908, 
subdivision 3, is amended to read: 
    Subd. 3.  By December 31 of the calendar year of the 
submission of the unaudited financial statement, the district 
shall provide to the commissioner and state auditor an audited 
financial statement prepared in a form which will allow 
comparison with and correction of material differences in the 
unaudited statement.  The audited financial statement must also 
provide a statement of assurance pertaining to uniform financial 
accounting and reporting standards compliance. 
    Sec. 7.  Minnesota Statutes 1989 Supplement, section 
121.912, subdivision 1, is amended to read: 
    Subdivision 1.  [LIMITATIONS.] Except as provided in this 
subdivision, sections 121.9121, 123.36, 124.243, 475.61, and 
475.65, a school district may not permanently transfer money 
from (1) an operating fund to a nonoperating fund; (2) a 
nonoperating fund to another nonoperating fund; or (3) a 
nonoperating fund to an operating fund.  Permanent transfers may 
be made from any fund to any other fund to correct for prior 
fiscal years' errors discovered after the books have been closed 
for that year.  Permanent transfers may be made from the general 
fund to any other operating funds according to section 123.705, 
subdivision 1, or if the resources of the other fund are not 
adequate to finance approved expenditures from that other fund.  
Permanent transfers may also be made from the general fund to 
eliminate deficits in another fund when that other fund is being 
discontinued.  When a district discontinues operation of a 
district-owned bus fleet or a substantial portion of a fleet, 
permanent transfers may must be made, on June 30 of the fiscal 
year that the operation is discontinued, from the fund balance 
account entitled "pupil transportation fund reserved for bus 
purchases" to the capital expenditure fund, with the approval of 
the commissioner.  The sum of the levies authorized pursuant to 
sections 124.243, 124.244, and 124.83 shall be reduced by an 
amount equal to the amount transferred.  Any school district may 
transfer any amount from the undesignated fund balance account 
in its transportation fund to any other operating fund or to the 
reserved fund balance account for bus purchases in its 
transportation fund. 
    Sec. 8.  Minnesota Statutes 1988, section 121.917, 
subdivision 4, is amended to read: 
    Subd. 4.  (1) If the net negative undesignated fund balance 
in all the funds of a school district, other than statutory 
operating debt pursuant to section 121.914, capital expenditure, 
building construction, debt service, trust and agency, and 
post-secondary vocational technical education funds, calculated 
in accordance with the uniform financial accounting and 
reporting standards for Minnesota school districts, as of June 
30 each year, is more than 2-1/2 percent of the year's 
expenditure amount, the district shall, prior to September 15, 
submit a special operating plan to reduce the district's deficit 
expenditures to the commissioner of education for approval.  The 
commissioner may also require the district to provide evidence 
that the district meets and will continue to meet all of the 
curriculum requirements of the state board. 
    Notwithstanding any other law to the contrary, a district 
submitting a special operating plan to the commissioner under 
this clause which is disapproved by the commissioner shall not 
receive any aid pursuant to chapter chapters 124 and 124A until 
a special operating plan of the district is so approved. 
    (2) A district shall receive aids pending the approval of 
its special operating plan under clause (1).  A district which 
complies with its approved operating plan shall receive aids as 
long as the district continues to comply with the approved 
operating plan. 
    Sec. 9.  Minnesota Statutes 1988, section 121.931, 
subdivision 6, is amended to read: 
    Subd. 6.  [DATA STANDARDS.] The state board shall adopt 
rules containing standards for financial, property, student and 
personnel/payroll data and any other data included in ESV-IS.  
For financial data, the uniform financial accounting and 
reporting standards adopted pursuant to section 121.902, 
subdivision 1, shall satisfy the requirement of this 
subdivision.  For property data, the uniform property accounting 
and reporting standards adopted pursuant to section 121.902, 
subdivision 1a by the state board shall satisfy the requirement 
of this subdivision.  The state board shall consider the 
recommendations of the advisory task forces on uniform data 
standards for student reporting and personnel/payroll reporting 
and the ESV computer council in adopting the standards for 
student data and personnel/payroll data.  The state board shall 
ensure that the standards for different types of data are 
consistent with each other, and for this purpose shall consider 
the recommendations of the advisory task forces on uniform data 
standards for student reporting and personnel/payroll reporting, 
the advisory council on uniform financial accounting and 
reporting standards, and the ESV computer council.  The data 
standards for each type of data shall include: 
    (a) A standard set of naming conventions for data elements; 
    (b) A standard set of data element definitions; and 
    (c) A standard transaction processing methodology which 
uses the defined data elements, specifies mathematical 
computations on those data elements and specifies output formats.
    The state board, with the advice and assistance of the ESV 
computer council, shall monitor and enforce compliance with the 
data standards.  
    Sec. 10.  Minnesota Statutes 1988, section 121.931, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [DATA STANDARD COMPLIANCE.] The department shall 
monitor and enforce compliance with the data standards.  For 
financial accounting data and property accounting data, the 
department shall develop statistically based tests to determine 
data quality.  The department shall annually test the data 
submitted by districts or regional centers and determine which 
districts submit inaccurate data.  The department shall require 
these districts to review the data in question and, if found in 
error, to submit corrected data.  
    Sec. 11.  Minnesota Statutes 1988, section 121.935, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [CENTER FOR DISTRICTS WITH ALTERNATIVE SYSTEMS.] 
Districts that operate alternative systems approved by the state 
board according to section 121.936 may create one regional 
management information center under section 471.59.  The center 
shall have all of the powers authorized under section 471.59.  
Only districts that operate approved alternative systems may be 
members of the center.  Upon receiving the approval of the state 
board to operate an alternative system, a district may become a 
member of the center.  
    Each member of the center board shall be a current member 
of a member school board.  
    The center board may purchase or lease equipment.  It may 
not employ any staff but may enter into a term contract for 
services.  A person providing services according to a contract 
with the center board is not a state employee.  
    The center shall perform the duties required by subdivision 
2, except clauses (c), (d), and (g).  The department shall 
provide the center all services that are provided to regional 
centers formed under subdivision 1, including transferring 
software and providing accounting assistance.  
    Sec. 12.  Minnesota Statutes 1988, section 121.935, 
subdivision 2, is amended to read: 
    Subd. 2.  [DUTIES.] Every regional management information 
center shall: 
    (a) Assist its affiliated districts in complying with the 
reporting requirements of the annual data acquisition calendar 
and the rules of the state board of education; 
    (b) Respond within 15 calendar days to requests from the 
department for district information provided to the region for 
state reporting of information, based on the data elements in 
the data element dictionary; 
    (c) Operate financial management information systems 
consistent with the uniform financial accounting and reporting 
standards for Minnesota school districts adopted by the state 
board pursuant to sections 121.90 to 121.917; 
    (d) Make available to districts the opportunity to 
participate fully in all the subsystems of ESV-IS; 
    (e) Before July 1, 1981, Develop and maintain a plan for 
the provision of to provide services during a system failure or 
a disaster; 
    (f) Comply with the requirement in section 121.908, 
subdivision 2, on behalf of districts affiliated with it; and 
    (g) Operate fixed assets property management information 
systems consistent with the uniform property accounting and 
reporting standards for Minnesota technical institutes adopted 
by the state board pursuant to section 121.902, subdivision 1a. 
    Sec. 13.  Minnesota Statutes 1988, section 121.935, 
subdivision 5, is amended to read: 
    Subd. 5.  [REGIONAL SUBSIDIES.] In any year when a regional 
management information center's annual plan and budget are 
approved pursuant to subdivision 3, the center shall receive a 
regional reporting subsidy grant from the department of 
education.  The subsidy grant shall be in the amount allocated 
by the state board in the process of approving the annual 
budgets of the regional management information centers pursuant 
to subdivision 3.  The amounts of the subsidy grants and an 
explanation of the allocation decisions shall be filed by the 
state board with the committees on education and finance of the 
senate and the committees on education and appropriations of the 
house of representatives legislature.  
    For subsidy grants for fiscal year 1981 and for each fiscal 
year thereafter, When determining the amount of a subsidy grant, 
the state board is encouraged to recognize that the diversity of 
regional management information centers precludes a 
formula-based allocation of subsidy grants, to promote equity 
and access to regional services in the allocation process, and 
to shall consider the following factors:  
    (a) The number of students in districts affiliated with the 
center; 
    (b) The number of districts affiliated with the center; 
    (c) Fixed and overhead costs to be incurred in operating 
the regional center, the finance subsystem, the 
payroll/personnel subsystem, and the student support subsystem; 
    (d) Variable costs to be incurred which that differ in 
proportion to the number of districts served and the number of 
subsystems implemented for those districts; 
    (e) Services provided to districts which that enable the 
districts to meet state reporting requirements; 
    (f) The cost of meeting the reporting requirements of 
subdivision 2 for districts using approved alternative 
management information systems; and 
    (g) The number of districts affiliated with a regional 
management information center in relation to the geographic area 
occupied by those districts.  
    Sec. 14.  Minnesota Statutes 1988, section 121.936, 
subdivision 2, is amended to read: 
    Subd. 2.  [ALTERNATIVE MANAGEMENT INFORMATION SYSTEMS.] A 
district may be exempted from the requirement in subdivision 1, 
clause (b)(2), if it receives the approval of the state board to 
use another financial management information system.  A district 
permitted before July 1, 1980, to submit its financial 
transactions in summary form to a regional management 
information center pursuant to subdivision 1 may continue to 
submit transactions in the approved form without obtaining the 
approval of the state board pursuant to this subdivision.  A 
district may be exempted from the requirement in subdivision 1a, 
clause (b), if it receives the approval of the state board to 
use an alternative fixed assets property management information 
system.  Any district desiring to use another management 
information system shall submit a detailed proposal to the state 
board, and the ESV computer council and the regional management 
information center with which it is affiliated.  The detailed 
proposal shall include a statement of all costs to the district, 
regional management information center or state for software 
development or operational services needed to provide data to 
the regional management information center pursuant to the data 
acquisition calendar. 
    Sec. 15.  Minnesota Statutes 1988, section 121.936, 
subdivision 3, is amended to read: 
    Subd. 3.  [ALTERNATIVE MANAGEMENT INFORMATION SYSTEMS; 
EVALUATION.] The regional management information center shall 
evaluate the district proposal according to the approval 
criteria in section 121.937, subdivision 1.  The regional 
management information center shall submit its evaluation of the 
district proposal to the state board and the ESV computer 
council for their consideration in evaluating the proposal. 
    The ESV computer council shall evaluate the district 
proposal according to the approval criteria in section 121.937, 
subdivision 1, clauses (a), (b), and (d).  Upon completion of 
the evaluation, the ESV computer council shall recommend to the 
state board that it (a) approve the proposal, (b) disapprove the 
proposal, or (c) approve the proposal if it is modified by the 
district in ways which that are specified by the council. 
    Sec. 16.  Minnesota Statutes 1988, section 122.23, 
subdivision 9, is amended to read: 
    Subd. 9.  If the approved plat contains land area in more 
than one independent district maintaining a secondary school, or 
common district maintaining a secondary school, and if each 
board entitled to act on the plat approves the plat, each board 
shall cause notice of its action to be published at least once 
in its official newspaper.  If all of the school boards entitled 
to act on the plat call, by resolution, for an election on the 
question, or if five percent of the eligible voters of any such 
district petition the clerk of the district, within 30 days 
after the publication of the notice, for an election on the 
question, the consolidation shall not become effective until 
approved by a majority vote in the district at an election held 
in the manner provided in subdivisions 11, 12, and 13. 
    Sec. 17.  Minnesota Statutes 1988, section 122.23, 
subdivision 11, is amended to read: 
    Subd. 11.  Upon an election becoming callable under 
provisions of subdivision 9 or 10, the county auditor school 
board shall give ten days' posted notice of election in the area 
in which the election is to be held and also if there be a 
newspaper published in the area, one weeks' published notice 
shall be given.  The notice shall specify the time, place and 
purpose of the election. 
    Sec. 18.  Minnesota Statutes 1988, section 122.23, 
subdivision 12, is amended to read: 
    Subd. 12.  The county auditor 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 
county auditor school board shall also provide official ballots 
which shall be used exclusively and shall be in the following 
form: 
    For consolidation .... 
    Against consolidation .... 
    The county auditor school board shall appoint three 
election judges for each polling place who shall act as clerks 
of election.  The county school board may pay these election 
judges not to exceed $1 per hour.  The ballots and results shall 
be certified to the county auditor school board who shall 
canvass and tabulate the total vote cast for and against the 
proposal. 
    Sec. 19.  Minnesota Statutes 1988, 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 election 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. 20.  Minnesota Statutes 1988, section 123.33, 
subdivision 1, is amended to read: 
    Subdivision 1.  The care, management, and control of 
independent districts shall be vested in a board of directors, 
to be known as the school board.  The term of office of a member 
shall be three years and until a successor qualifies.  The 
membership of the school board shall consist of six elected 
directors together with such ex officio member as may be 
provided by law.  But the board may submit to the electors at 
any school election the question whether the board shall consist 
of seven members and if a majority of those voting on the 
proposition favor a seven member board, a seventh member shall 
be elected at the next election of directors for a three-year 
term and thereafter the board shall consist of seven members. 
    Those districts with a seven member board may submit to the 
electors at any school election at least 150 days before the 
next election of three members of the board the question whether 
the board shall consist of six members.  If a majority of those 
voting on the proposition favor a six member board instead of a 
seven member board, two members instead of three members shall 
be elected at the next election of the board of directors and 
thereafter the board shall consist of six members. 
    Sec. 21.  Minnesota Statutes 1988, section 123.34, 
subdivision 9, is amended to read:  
    Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
classified secondary school shall employ a superintendent who 
shall be an ex officio nonvoting member of the school board.  
The authority for selection and employment of a superintendent 
shall be vested in the school board in all cases.  An individual 
employed by a school board as a superintendent shall have an 
initial employment contract for a period of time no longer than 
four years from the date of employment.  The initial employment 
contract must terminate on June 30 of an odd-numbered year.  Any 
subsequent employment contract between a school board and the 
same individual to serve as a superintendent may not extend 
beyond June 30 of the next odd-numbered year.  A school board 
may or may not renew, at its discretion, an initial employment 
contract or a subsequent employment contract.  A school board 
may terminate a superintendent during the term of an employment 
contract for any of the grounds specified in section 125.12, 
subdivision 6 or 8.  A superintendent shall not rely upon an 
employment contract with a school board to assert any other 
continuing contract rights in the position of superintendent 
under section 125.12.  Notwithstanding the provisions of 
sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any 
other law to the contrary, no individual shall have a right to 
employment as a superintendent based on seniority or order of 
employment in any district.  If two or more school districts 
enter into an agreement for the purchase or sharing of the 
services of a superintendent, the contracting districts have the 
absolute right to select one of the individuals employed to 
serve as superintendent in one of the contracting districts and 
no individual has a right to employment as the superintendent to 
provide all or part of the services based on seniority or order 
of employment in a contracting district.  An individual who 
holds a position as superintendent in one of the contracting 
districts, but is not selected to perform the services, may be 
placed on unrequested leave of absence or may be reassigned to 
another available position in the district for which the 
individual is licensed.  The superintendent of a district shall 
perform the following:  
    (a) (1) visit and supervise the schools in the district, 
report and make recommendations about their condition when 
advisable or on request by the board; 
    (b) (2) recommend to the board employment and dismissal of 
teachers; 
    (c) (3) superintend school grading practices and 
examinations for promotions; 
    (d) (4) make reports required by the commissioner of 
education; and 
    (e) (5) perform other duties prescribed by the board. 
    Sec. 22.  Minnesota Statutes 1988, section 123.34, 
subdivision 10, is amended to read: 
    Subd. 10.  Each public school building or unit of 
classification, as designated defined by section 120.05, 
subdivision 1 2, clauses (1), (2) and (3), in an independent 
school district shall be under the supervision of a principal 
who is assigned to that responsibility by the board of education 
in that school district upon the recommendation of the 
superintendent of schools of that school district. 
    Each principal assigned the responsibility for the 
supervision of a school building or units of classification 
shall hold valid certification in the assigned position of 
supervision and administration as established by the rules of 
the state board of education. 
    The principal shall provide administrative, supervisory and 
instructional leadership services, under the supervision of the 
superintendent of schools of the school district and in 
accordance with the policies, rules and regulations of the board 
of education, for the planning, management, operation and 
evaluation of the education program of the building or buildings 
to which the principal is assigned. 
    Sec. 23.  Minnesota Statutes 1988, section 123.36, 
subdivision 10, is amended to read: 
    Subd. 10.  (a) The board may lease to any person, business, 
or organization a schoolhouse that is not needed for school 
purposes to any person or organization, or part of a schoolhouse 
that is not needed for school purposes if the board determines 
that leasing part of a schoolhouse does not interfere with the 
educational programs taking place in the rest of the building. 
The board may charge and collect reasonable consideration for 
the lease and may determine the terms and conditions of the 
lease. 
    (b) In districts with outstanding bonds, the net proceeds 
of the lease shall be first deposited in the debt retirement 
fund of the district in an amount sufficient to meet when due 
that percentage of the principal and interest payments for 
outstanding bonds that is ascribable to the payment of expenses 
necessary and incidental to the construction or purchase of the 
particular building or property that is leased.  Any remaining 
net proceeds in these districts may be deposited in either the 
debt redemption fund or capital expenditure fund.  All net 
proceeds of the lease in districts without outstanding bonds 
shall be deposited in the capital expenditure fund of the 
district. 
    (c) The board may make capital improvements, including 
fixtures, to a schoolhouse or a portion thereof, not exceeding 
in cost the replacement value of the schoolhouse, to facilitate 
its rental, and the lease of an improved schoolhouse, or part of 
it, shall provide for rentals which will recover the cost of the 
improvements over the initial term of the lease.  
Notwithstanding clause (b), the portion of the rentals 
representing the cost of the improvements shall be deposited in 
the capital expenditure fund of the district and the balance of 
the rentals shall be used as provided in clause (b). 
    Sec. 24.  Minnesota Statutes 1988, section 123.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  No contract for work or labor, or for the 
purchase of furniture, fixtures, or other property, except books 
registered under the copyright laws, or for the construction or 
repair of school houses, the estimated cost or value of which 
shall exceed that specified in section 471.345, subdivision 3, 
shall be made by the school board without first advertising for 
bids or proposals by two weeks' published notice in the official 
newspaper.  This notice shall state the time and place of 
receiving bids and contain a brief description of the subject 
matter. 
    Additional publication in the official newspaper or 
elsewhere may be made as the board shall deem necessary. 
    After taking into consideration conformity with the 
specifications, terms of delivery, and other conditions imposed 
in the call for bids, every such contract shall be awarded to 
the lowest responsible bidder, be duly executed in writing, and 
be otherwise conditioned as required by law. The person to whom 
the contract is awarded shall give a sufficient bond to the 
board for its faithful performance.  Notwithstanding section 
574.26 or any other law to the contrary, on a contract limited 
to the purchase of a finished tangible product, a school board 
may require, at its discretion, a performance bond of a 
contractor in the amount the board considers necessary.  A 
record shall be kept of all bids, with names of bidders and 
amount of bids, and with the successful bid indicated thereon.  
A bid containing an alteration or erasure of any price contained 
in the bid which is used in determining the lowest responsible 
bid shall be rejected unless the alteration or erasure is 
corrected as herein provided.  An alteration or erasure may be 
crossed out and the correction thereof printed in ink or 
typewritten adjacent thereto and initialed in ink by the person 
signing the bid.  In the case of identical low bids from two or 
more bidders, the board may, at its discretion, utilize 
negotiated procurement methods with the tied low bidders for 
that particular transaction, so long as the price paid does not 
exceed the low tied bid price.  In the case where only a single 
bid is received, the board may, at its discretion, negotiate a 
mutually agreeable contract with the bidder so long as the price 
paid does not exceed the original bid.  If no satisfactory bid 
is received, the board may readvertise. Standard requirement 
price contracts established for supplies or services to be 
purchased by the district shall be established by competitive 
bids.  Such standard requirement price contracts may contain 
escalation clauses and may provide for a negotiated price 
increase or decrease based upon a demonstrable industrywide or 
regional increase or decrease in the vendor's costs.  Either 
party to the contract may request that the other party 
demonstrate such increase or decrease.  The term of such 
contracts shall not exceed two years with an option on the part 
of the district to renew for an additional two years.  Provided 
that in the case of purchase of perishable food items except 
milk for school lunches and vocational training programs a 
contract of any amount may be made by direct negotiation by 
obtaining two or more written quotations for the purchase or 
sale, when possible, without advertising for bids or otherwise 
complying with the requirements of this section or section 
471.345, subdivision 3.  All quotations obtained shall be kept 
on file for a period of at least one year after receipt thereof. 
    Every contract made without compliance with the provisions 
of this section shall be void.  Provided, that in case of the 
destruction of buildings or injury thereto, where the public 
interest would suffer by delay, contracts for repairs may be 
made without advertising for bids. 
    Sec. 25.  Minnesota Statutes 1988, section 123.38, 
subdivision 2b, is amended to read: 
    Subd. 2b.  The board may take charge of and control all 
extra curricular activities of the teachers and children of the 
public schools in the district.  Extra curricular activities 
shall mean all direct and personal services for public school 
pupils for their enjoyment that are managed and operated under 
the guidance of an adult or staff member.  Extra curricular 
activities have all of the following characteristics: 
    (a) They are not offered for school credit nor required for 
graduation; 
    (b) They are generally conducted outside school hours, or 
if partly during school hours, at times agreed by the 
participants, and approved by school authorities; 
    (c) The content of the activities is determined primarily 
by the pupil participants under the guidance of a staff member 
or other adult. 
    If the board does not take charge of and control extra 
curricular activities, these activities shall be self-sustaining 
with all expenses, except direct salary costs and indirect costs 
of the use of school facilities, met by dues, admissions or 
other student fundraising events; moreover, the general fund or 
the technical institutes fund, if applicable, shall reflect only 
those salaries directly related to and readily identified with 
the activity and paid by public funds and other revenues and 
expenditures for extra curricular activities shall be recorded 
pursuant to the "Manual of Instructions for Uniform Student 
Activities Accounting for Minnesota School Districts.".  If the 
board takes charge of and controls extra curricular activities, 
any or all costs of these activities may be provided from school 
revenues and.  All revenues and expenditures for these 
activities shall be recorded in the same manner as other 
revenues and expenditures of the district.  If the board takes 
charge of and controls extra curricular activities, no such 
activity shall be participated in by the teachers or pupils in 
the district, nor shall the school name or any allied name be 
used in connection therewith, except by consent and direction of 
the board. 
    Sec. 26.  Minnesota Statutes 1988, section 124.195, is 
amended by adding a subdivision to read: 
    Subd. 13.  [DELAY OF PAYMENTS.] A district must submit 
financial data according to section 121.936, subdivision 1, that 
is consistent with the audited financial statement required by 
section 121.908, subdivision 3.  If the corrected data has not 
been submitted by June 30 following the date it is required to 
be submitted, the commissioner shall delay payments made 
according to subdivision 3 until the district submits the 
corrected data.  If the commissioner determines that the 
submission of the corrected data is delayed because of 
circumstances beyond the district's control, the commissioner 
may extend the June 30 deadline. 
    Sec. 27.  Minnesota Statutes 1989 Supplement, section 
124.6472, subdivision 2, is amended to read: 
    Subd. 2.  [EXEMPTION.] Subdivision 1 does not apply to a 
school in which fewer than 25 pupils are expected to take part 
in the program.  It also does not apply to a school district 
that does not participate in the national school lunch program. 
    Sec. 28.  Minnesota Statutes 1989 Supplement, section 
124A.22, subdivision 2a, is amended to read: 
    Subd. 2a.  [ELIGIBILITY FOR INCREASE 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 129B or 136D, 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 vocational technical 
education. 
    (b) Notwithstanding subdivision 2 or any other law to the 
contrary, if a school board public employer and the bargaining 
unit exclusive representative of the teachers in a school 
district have not ratified shall both sign a contract by 
collective bargaining agreement on or before January 15, 1990, 
for the two-year period ending June 30, 1991, the district is no 
longer eligible for $25 of the formula allowance for fiscal year 
1990 of an even-numbered calendar year.  The total amount of 
money that would have been paid to districts that are not 
eligible according to this subdivision 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. 
    (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 allocated 
returned to eligible districts according to the number of actual 
pupil units in all of the eligible districts the general fund. 
    Sec. 29.  Minnesota Statutes 1988, section 125.12, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TEACHER DEFINED.] A superintendent, 
principal, supervisor, and classroom teacher and any other 
professional employee required to hold a license from the state 
department shall be deemed to be a "teacher" within the meaning 
of this section.  A superintendent is a "teacher" only for 
purposes of subdivisions 2 and 14. 
    Sec. 30.  Minnesota Statutes 1988, section 125.185, is 
amended by adding a subdivision to read: 
    Subd. 10.  [VARIANCES.] Notwithstanding subdivision 9 and 
section 14.05, subdivision 4, the board of teaching may grant a 
variance to its rules upon application by a school district for 
purposes of implementing experimental programs in learning or 
management. 
    Sec. 31.  Minnesota Statutes 1988, section 125.60, 
subdivision 2, is amended to read: 
    Subd. 2.  The board of any district may grant an extended 
leave of absence without salary to any full- or part-time 
elementary, secondary, or technical institute teacher who has 
been employed by the district for at least five years and has at 
least ten years of allowable service, as defined in section 
354.05, subdivision 13, or the bylaws of the appropriate 
retirement association or ten years of full-time teaching 
service in Minnesota public elementary, secondary, and technical 
institutes.  The maximum duration of an extended leave of 
absence pursuant to this section shall be determined by mutual 
agreement of the board and the teacher at the time the leave is 
granted and shall be at least three but no more than five 
years.  An extended leave of absence pursuant to this section 
shall be taken by mutual consent of the board and the teacher 
and may be granted only once.  If the school board denies a 
teacher's request, it shall provide reasonable justification for 
the denial.  
    Sec. 32.  [126.113] [MINNESOTA EDUCATION IN AGRICULTURE 
COUNCIL.] 
    Subdivision 1.  [ESTABLISHMENT.] The Minnesota education in 
agriculture council is established to promote education about 
agriculture.  
    Subd. 2.  [GOVERNANCE.] The council must be appointed by 
the governor and has 12 members.  One member must be appointed 
from each congressional district and the remaining members must 
be appointed at large.  Council terms and removal of members are 
as provided in section 15.0575.  Council members may receive 
reimbursement for expenses only if sources other than a direct 
legislative appropriation are available to pay the costs of 
members' reimbursement.  The council is governed by an executive 
board of directors.  The council may organize and appoint 
committees as it considers necessary. 
    Sec. 33.  Minnesota Statutes 1988, section 126.12, 
subdivision 2, is amended to read: 
    Subd. 2.  Except for technical institutes, every Saturday 
shall be a school holiday, except that school may be held on a 
Saturday if necessary to meet the requirement in section 124.19 
of making a good faith attempt to make up time lost on account 
of circumstances which were beyond the control of the school 
board.  The school board shall determine the number of school 
days of each school year on or before April 1 of the calendar 
year in which such school year commences.  The board shall offer 
all elementary, middle, and secondary school subjects required 
by the board or the curriculum rules of the state board of 
education on days other than Saturdays, Sundays, and holidays.  
On any day of the week the board may provide: 
    (1) classes or courses at technical colleges; 
    (2) classes or courses at area learning centers; 
    (3) classes or courses if necessary to meet the requirement 
in section 124.19 of making a good faith attempt to make up time 
lost because of circumstances beyond the control of the school 
board; 
    (4) remedial courses; 
    (5) courses previously taken, but not successfully 
completed by the pupil for whom the course is being provided; 
    (6) staff development programs; and 
    (7) other educational opportunities approved by the 
commissioner of education. 
    Sec. 34.  [129B.79] [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. 
    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; 
    (5) procedures for coordinating the program with 
kindergarten through grade 12 curriculum, with parental 
involvement programs currently available in the community, 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. 
    Sec. 35.  [237.065] [RATES FOR SPECIAL SERVICE TO SCHOOLS.] 
    Each telephone company, including a company that has 
developed an incentive plan under section 237.625, that provides 
local telephone service in a service area that includes a public 
school that has classes within the range from kindergarten to 
12th grade shall provide, upon request, additional service to 
the school that is sufficient to ensure access to basic 
telephone service from each classroom and other areas within the 
school, as determined by the school board.  Each company shall 
set a flat rate for this additional service that is less than 
the company's flat rate for an access line for a business and 
the same as or greater than the company's flat rate for an 
access line for a residence in the same local telephone service 
exchange.  When a company's flat rates for businesses and 
residences are the same, the company shall use the residential 
rate for service to schools under this section.  The rate 
required under this section is available only for a school that 
installs additional service that includes access to basic 
telephone service from each classroom and other areas within the 
school, as determined by the school board.  
    Sec. 36.  Laws 1989, chapter 202, section 6, subdivision 7, 
is amended to read: 
    Subd. 7.  [PROCEDURES AND RECOMMENDATIONS.] The board shall 
review and evaluate all proposals and adopt recommendations.  
The board may recommend rejection of all proposals.  The board 
shall submit its recommendations and copies of proposals to the 
commissioner of finance.  The commissioner of finance shall may 
contract with an independent evaluator to provide an independent 
market valuation of the corporation.  The commissioner of 
finance shall review the recommendations of the board and the 
any independent evaluation.  The commissioner of finance shall 
submit the recommendations of the board of directors, the any 
independent evaluation, and the recommendations of the 
commissioner of finance to the legislative auditor.  The 
legislative auditor shall review the recommendations of the 
board of directors and the commissioner of finance and the any 
independent evaluation and make its recommendations.  
    Sec. 37.  Laws 1989, chapter 202, section 6, subdivision 8, 
is amended to read:  
    Subd. 8.  [REPORT TO THE LEGISLATURE.] By January 15, 1990, 
the recommendations of the board of directors, the commissioner 
of finance, and the legislative auditor, and the any independent 
evaluation shall be submitted to the education committees of the 
legislature. 
    Sec. 38.  [TELEPHONE COMPANIES TO SUBMIT RATES.] 
    Notwithstanding Minnesota Statutes, section 237.07, each 
telephone company, as defined in Minnesota Statutes, section 
237.01, subdivision 2, that is subject to section 33 shall make 
the service required by section 33 available no later than 
January 1, 1991, and shall develop proposed rates for the 
services and submit them to the public utilities commission 
within 30 days of receipt by the company of a request for 
service. 
    Sec. 39.  [BADGER SCHOOL DISTRICT BORROWING.] 
    Subdivision 1.  [BORROWING AGAINST TAXES 
PAYABLE.] Independent school district No. 676, Badger, may 
borrow money for the purpose of anticipating general taxes 
previously levied by the district for school purposes, including 
taxes on which penalties for nonpayment or delinquency have 
accrued.  Minnesota Statutes, sections 124.71 to 124.76, apply 
to the borrowing except as provided in this subdivision.  
    Subd. 2.  [NO LOCAL APPROVAL.] According to Minnesota 
Statutes, section 645.023, subdivision 1, clause (a), 
subdivision 1 is effective the day following final enactment 
without local approval.  
    Sec. 40.  [EFFECTIVE DATE FOR CERTAIN TEACHER EXAMS.] 
    Notwithstanding any law to the contrary, successful 
completion of an examination of skills in reading, writing, and 
mathematics, as required by Minnesota Statutes, section 125.05, 
subdivision 1, is applicable for all persons applying for 
initial secondary vocational teaching licenses effective April 
8, 1991. 
    Sec. 41.  [AKELEY FUND TRANSFER.] 
    Notwithstanding Minnesota Statutes, section 121.912, 
independent school district No. 301, Akeley, may permanently 
transfer any surplus amount from the capital expenditure fund to 
the general fund.  The transfer is contingent upon independent 
school district No. 301, Akeley, consolidating under Minnesota 
Statutes, section 122.23, with independent school district No. 
119, Walker.  The transfer must take place before the end of the 
first full fiscal year that the consolidation is in effect.  The 
transfer must be made to the general fund of the consolidated 
district. 
    Sec. 42.  [HIBBING FUND TRANSFER.] 
    Notwithstanding Minnesota Statutes, section 121.912, 
subdivision 1, independent school district No. 701, Hibbing, may 
permanently transfer the surplus amount in the fund balance 
account entitled "pupil transportation fund reserved for bus 
purchases" to the transportation fund. 
    Sec. 43.  [NASHWAUK-KEEWATIN LEVY ADJUSTMENT.] 
    Notwithstanding any other law to the contrary, the 
commissioner of education shall make a levy adjustment to the 
levies certified by independent school district No. 319, 
Nashwauk-Keewatin. 
    The commissioner shall reduce the district's general fund 
levy limit by $163,373 and increase its down payment levy limit 
under section 124.82 by the same amount for levies certified in 
the fall of 1989, 1990, 1991, 1992, and 1993. 
    Sec. 44.  [SCHOOL OF EXCELLENCE.] 
    The board of directors of the Minnesota academic excellence 
foundation shall include in its 1991 annual report to the 
education committees of the legislature recommendations for 
making available to schools and districts statewide, a Minnesota 
school of excellence program that contains the following 
components: 
    (1) state standards of excellence; 
    (2) criteria for showing improvement in academic 
performance over time by schools or districts participating in 
the program; 
    (3) a detailed cost analysis of the program; 
    (4) an external review process to verify the contents of an 
application submitted by a participating school or district; and 
    (5) a funding mechanism for permitting participating 
schools or districts to assist other schools or districts 
interested in participating in the program. 
    Sec. 45.  [NEGOTIATED INCENTIVE PLAN; PARTICIPATION IN 
RETIREMENT FUND.] 
    A teacher employed by independent school district No. 709, 
Duluth, who voluntarily participates in an incentive plan 
negotiated by the school board and the exclusive representative 
of the teachers permitting 80 percent payment of salary over a 
five-year period, during which the teacher works four years and 
is on leave the fifth year, may receive service credit in the 
Duluth teachers retirement fund association for the entire 
five-year period of the incentive plan if the teacher and the 
employing board make employer and employee contributions for the 
period based on the annual salary the teacher would have 
received if teaching in the district during the period without 
the salary reduction to 80 percent.  
    Sec. 46.  [REPEALER.] 
    Minnesota Rules, part 3560.0040, subparts 1 and 3, are 
repealed the day following final enactment. 
    Sec. 47.  [EFFECTIVE DATES.] 
    Section 6 is effective for audited financial statements for 
fiscal year 1991 and thereafter.  
    Sections 4, 5, 11, 24, 28, 31, and 46 are effective the day 
following final enactment. 
    Sections 21 and 29 apply only to those employment contracts 
entered into or modified after July 1, 1990. 
    Section 3 is retroactively effective May 20, 1989. 

                               ARTICLE 9 

                             STATE AGENCIES 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
129C.10, is amended by adding a subdivision to read: 
    Subd. 7.  [PURCHASING INSTRUCTIONAL ITEMS.] Technical 
educational equipment may be procured for programs of the 
Minnesota center for arts education by the board either by brand 
designation or in accordance with standards and specifications 
the board may adopt, notwithstanding chapter 16B. 
    Sec. 2.  Laws 1989, chapter 329, article 12, section 11, is 
amended to read:  
    Sec. 11.  [MINNESOTA CENTER FOR ARTS EDUCATION.] 
Total Appropriations         $ 5,800,000     $ 6,200,000 
Approved Complement -        1990            1991 
General Fund -               39.0            49.0 53.0 
Total -                      39.0            49.0 53.0 
    The state complement for the Minnesota center for arts 
education is increased by 18.0 for the first year and 28.0 32.0 
the second year. 
    Any expended balance from the appropriation in this section 
in 1990 does not cancel but is available in 1991.  
    Sec. 3.  [TASK FORCE ON MATHEMATICS, SCIENCE, TECHNOLOGY, 
AND INTERNATIONAL EDUCATION.] 
    Subdivision 1.  [MEMBERSHIP.] The governor's task force on 
mathematics, science, technology, and international education 
shall be comprised of members appointed by the governor, two 
members appointed by the speaker of the house of 
representatives, and two members appointed by the subcommittee 
on committees of the committee on rules and administration of 
the senate.  Either or both members appointed by the speaker and 
the subcommittee may be members of the legislature or public 
members. 
    Subd. 2.  [TASK FORCE DUTIES.] The governor's task force 
shall:  
    (1) assess the current state of mathematics, science, and 
technology education in Minnesota; 
    (2) review local, state, federal, and international efforts 
to improve mathematics, science, and technology education; 
    (3) study the effectiveness of education programs, 
including specialized programs in other states, in meeting the 
scientific, mathematical, and technological education needs of 
academic, private sector, and research and development 
organizations; 
    (4) recommend short- and long-range methods to improve 
mathematics, science, technology, and international education in 
Minnesota; 
    (5) study the feasibility of a resource center and school 
for mathematics, science, technology, and international 
education in Minnesota; and 
    (6) study and make recommendations for integrating 
international education and world languages with the study of 
mathematics, science, and technology. 
    Subd. 3.  [MISCELLANEOUS.] The task force shall conduct at 
least four meetings in greater Minnesota.  
    The task force may appoint staff as necessary who shall be 
in the unclassified service.  The commissioner of education 
shall provide office space for the task force staff at no charge 
to the task force.  
    Minnesota Statutes, section 15.059, subdivisions 4 and 6, 
apply to the task force.  The task force shall terminate on June 
30, 1991.  
    Subd. 4.  [REPORTS.] The task force shall submit a report 
of its activities to the legislative commission on public 
education by December 31, 1990.  It shall submit a report and 
recommendations to the education committees of the legislature 
by January 15, 1991.  
    Sec. 4.  [CARRYOVER OF LEARNER OUTCOME APPROPRIATION.] 
    Any unexpended fund balance remaining from the amount 
designated for fiscal year 1990 for identification and 
integration of learner outcomes, including the amount designated 
for fiscal year 1990 for the identification and development of 
vocational career learner outcomes, does not cancel and is 
available for fiscal year 1991.  The amounts carried forward may 
not be used to establish a larger annual base appropriation for 
future fiscal years. 
    Sec. 5.  [DEPARTMENT OF EDUCATION REDUCTION.] 
    The appropriations to the department of education in Laws 
1989, chapter 329, article 12, section 9, subdivisions 2 and 3, for 
fiscal 
year 1991 are reduced by $354,000.  The commissioner must 
allocate this reduction within the agency. 
    The state complement for the fiscal year 1991 base must be 
adjusted to reflect the reduction in appropriations. 
    The state complement of the vocational education section is 
increased by 3.5 and the federal complement by 1.0 to replace 
services for vocational student organizations that had been 
provided under contract. 
    Sec. 6.  [ARTS CENTER REDUCTION.] 
    The appropriation to the Minnesota center for arts 
education in Laws 1989, article 12, section 11, for fiscal year 
1991 is reduced by $125,000. 
    Sec. 7.  [FARIBAULT ACADEMIES REDUCTION.] 
    The appropriation to the Faribault Academies in Laws 1989, 
article 12, section 10, for fiscal year 1991 is reduced by 
$75,000.  
    Sec. 8.  [APPROPRIATIONS.] 
    Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sum 
indicated in this section is appropriated from the general fund 
to the department of education for the fiscal year designated.  
    Subd. 2.  [TASK FORCE ON MATHEMATICS, SCIENCE, TECHNOLOGY, 
AND INTERNATIONAL EDUCATION.] For staff and related expenses of 
the governor's task force on mathematics, science, technology, 
and international education:  
    $100,000 ..... 1990.  
    The appropriation is available until June 30, 1991. 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 3, 4 and 8 are effective the day following final 
enactment. 

                               ARTICLE 10
TECHNICAL TAX RATE CHANGES
    Section 1.  Minnesota Statutes 1989 Supplement, section 
124.10, subdivision 2, is amended to read: 
    Subd. 2.  The county auditor shall at the time of making 
the March May and November tax settlements of each year 
apportion to the several districts the amount received from 
liquor licenses, fines, estrays, and other sources belonging to 
the general school fund.  The apportionment shall be made in 
proportion to each district's net tax capacity within the county 
in the prior year.  No district shall receive any part of the 
money received from liquor licenses unless all sums paid for 
such licenses in such district are apportioned to the county 
school fund.  
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
124.26, subdivision 8, is amended to read: 
    Subd. 8.  [ADULT BASIC EDUCATION LEVY.] To obtain adult 
basic education aid, a district may levy an amount not to exceed 
the amount raised by a gross tax capacity rate of .16 percent 
times the adjusted gross tax capacity of the district for the 
preceding year for taxes payable in 1990 or a net tax capacity 
rate of .20 .21 percent times the adjusted net tax capacity of 
the district for the preceding year for taxes payable in 1991 
and thereafter. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
124.2713, subdivision 6, is amended to read: 
    Subd. 6.  [COMMUNITY EDUCATION LEVY.] To obtain community 
education revenue, a district may levy the amount raised by 
a gross tax capacity rate of 0.8 percent times the adjusted 
gross tax capacity of the district for taxes payable in 1990 or 
a net tax capacity rate of 1.0 1.07 percent times the adjusted 
net tax capacity of the district for taxes payable in 1991 and 
thereafter.  If the amount of the community education levy would 
exceed the community education revenue, the community education 
levy shall equal the community education revenue.  
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
124.575, subdivision 3, is amended to read: 
    Subd. 3.  [LEVY.] The secondary vocational cooperative levy 
is equal to the following:  
    (1) the secondary vocational cooperative revenue according 
to subdivision 2, times 
    (2) the lesser of 
    (a) one, or 
    (b) the ratio of the adjusted gross tax capacity for taxes 
payable in 1990 and adjusted net tax capacity for taxes payable 
in 1991 and thereafter of the secondary vocational cooperative 
divided by the number of actual pupil units in the secondary 
vocational cooperative to an amount equal to $20 divided by .6 
percent for taxes payable in 1990 and .74 .78 percent for taxes 
payable in 1991 and thereafter. 
    The department of education shall allocate the levy amount 
proportionately among the member districts based on adjusted tax 
capacity.  The member districts shall levy the amount allocated. 
    Sec. 5.  Minnesota Statutes Second 1989 Supplement, section 
124.83, subdivision 4, is amended to read: 
    Subd. 4.  [HEALTH AND SAFETY LEVY.] To receive health and 
safety revenue, a district may levy an amount equal to the 
district's health and safety revenue as defined in subdivision 3 
multiplied by the lesser of one, or the ratio of: 
    (1) the quotient derived by dividing (a) the adjusted gross 
tax capacity for fiscal year 1991, and (b) the adjusted net tax 
capacity for 1992 and later fiscal years, of the district for 
the year preceding the year the levy is certified by the actual 
pupil units in the district for the school year to which the 
levy is attributable, to 
    (2) $7,128.10 $7,103.60 for fiscal year 1991 and $5,304 for 
1992 and later fiscal years. 
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 5c, is amended to read: 
    Subd. 5c.  [NONREGULAR TRANSPORTATION LEVY.] A school 
district may also make a levy for unreimbursed nonregular 
transportation costs pursuant to this subdivision.  The amount 
of the levy shall be the result of the following computation: 
    (a) multiply 
    (1) the amount of the district's nonregular transportation 
revenue under section 124.225, subdivision 7c, that is more than 
the product of $30 times the district's actual pupil units, by 
    (2) 60 percent; 
    (b) subtract the result in clause (a) from the district's 
total nonregular transportation revenue; 
    (c) multiply the result in clause (b) by the lesser of one 
or the ratio of (i) the quotient derived by dividing the 
adjusted gross 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 school year to which the levy is 
attributable, to (ii) $9,722 $7,258. 
    Sec. 7.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 6h, is amended to read: 
    Subd. 6h.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY LEVY.] 
Each year special school district No. 1, Minneapolis, may make 
an additional levy not to exceed the amount raised by a gross 
tax capacity rate of .08 percent times the adjusted gross tax 
capacity for taxes payable in 1990 or a net tax capacity rate of 
.11 .10 percent times the adjusted net tax capacity for taxes 
payable in 1991 and thereafter of the property in the district 
for the preceding year.  The proceeds may be used only to 
subsidize health insurance costs for eligible teachers as 
provided in this section.  
    "Eligible teacher" means a retired teacher who was a basic 
member of the Minneapolis teachers retirement fund association, 
who retired before May 1, 1974, and who is not eligible to 
receive the hospital insurance benefits of the federal Medicare 
program of the Social Security Act without payment of a monthly 
premium.  The district shall notify eligible teachers that a 
subsidy is available.  To obtain a subsidy, an eligible teacher 
must submit to the school district a copy of receipts for health 
insurance premiums paid.  The school district shall disburse the 
health insurance premium subsidy to each eligible teacher 
according to a schedule determined by the district, but at least 
annually.  An eligible teacher may receive a subsidy up to an 
amount equal to the lesser of 90 percent of the cost of the 
eligible teacher's health insurance or up to 90 percent of the 
cost of the number two qualified plan of health coverage for 
individual policies made available by the Minnesota 
comprehensive health association under chapter 62E.  
     If funds remaining from the previous year's health 
insurance subsidy levy, minus the previous year's required 
subsidy amount, are sufficient to pay the estimated current year 
subsidy, the levy must be discontinued until the remaining funds 
are estimated by the school board to be insufficient to pay the 
subsidy. 
    Sec. 8.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 8b, is amended to read: 
    Subd. 8b.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] A 
district may levy for its early childhood family education 
program.  The amount levied shall not exceed the lesser of:  
    (a) a gross tax capacity rate of .4 percent times the 
adjusted gross tax capacity for taxes payable in 1990 or a net 
tax capacity rate of .49 .54 percent times the adjusted net tax 
capacity for taxes payable in 1991 and thereafter of the 
district for the year preceding the year the levy is certified, 
or 
    (b) the maximum revenue as defined in section 124.2711, 
subdivision 1, for the school year for which the levy is 
attributable. 
    Sec. 9.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 9a, is amended to read: 
    Subd. 9a.  [STATUTORY OPERATING DEBT LEVY.] (1) In each 
year in which so required by this subdivision, a district shall 
make an additional levy to eliminate its statutory operating 
debt, determined as of June 30, 1977, and certified and adjusted 
by the commissioner.  This levy shall not be made in more than 
20 successive years and each year before it is made, it must be 
approved by the commissioner and the approval shall specify its 
amount.  This levy shall be an amount which is equal to the 
amount raised by a levy of a gross tax capacity rate of 1.20 
percent times the adjusted gross tax capacity of the district 
for the preceding year for taxes payable in 1990 or a net tax 
capacity rate of 1.50 1.66 percent times the adjusted net tax 
capacity of the district for the preceding year for taxes 
payable in 1991 and thereafter; provided that in the last year 
in which the district is required to make this levy, it shall 
levy an amount not to exceed the amount raised by a levy of a 
gross tax capacity rate of 1.20 percent times the adjusted gross 
tax capacity of the district for the preceding year for taxes 
payable in 1990 or a net tax capacity rate of 1.50 1.66 percent 
times the adjusted net tax capacity of the district for the 
preceding year for taxes payable in 1991 and thereafter.  When 
the sum of the cumulative levies made pursuant to this 
subdivision and transfers made according to section 121.912, 
subdivision 4, equals an amount equal to the statutory operating 
debt of the district, the levy shall be discontinued. 
     (2) The district shall establish a special account in the 
general fund which shall be designated "appropriated fund 
balance reserve account for purposes of reducing statutory 
operating debt" on its books and records.  This account shall 
reflect the levy authorized pursuant to this subdivision.  The 
proceeds of this levy shall be used only for cash flow 
requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets. 
     (3) Any district which is required to levy pursuant to this 
subdivision shall certify the maximum levy allowable under 
section 124A.23, subdivision 2, in that same year. 
     (4) Each district shall make permanent fund balance 
transfers so that the total statutory operating debt of the 
district is reflected in the general fund as of June 30, 1977. 
    Sec. 10.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 9b, is amended to read: 
    Subd. 9b.  [OPERATING DEBT LEVY.] (1) Each year, a district 
may make an additional levy to eliminate a deficit in the net 
unappropriated operating funds of the district, determined as of 
June 30, 1983, and certified and adjusted by the commissioner.  
This levy may in each year be an amount not to exceed the amount 
raised by a levy of a gross tax capacity rate of 1.20 percent 
times the adjusted gross tax capacity for taxes payable in 1990 
or a net tax capacity rate of 1.50 1.85 percent times the 
adjusted net tax capacity for taxes payable in 1991 and 
thereafter of the district for the preceding year as determined 
by the commissioner.  However, the total amount of this levy for 
all years it is made shall not exceed the lesser of (a) the 
amount of the deficit in the net unappropriated operating funds 
of the district as of June 30, 1983, or (b) the amount of the 
aid reduction, according to Laws 1981, Third Special Session 
chapter 2, article 2, section 2, but excluding clauses (l), (m), 
(n), (o), and (p), and Laws 1982, Third Special Session chapter 
1, article 3, section 6, to the district in fiscal year 1983.  
When the cumulative levies made pursuant to this subdivision 
equal the total amount permitted by this subdivision, the levy 
shall be discontinued.  
    (2) The proceeds of this levy shall be used only for cash 
flow requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets.  
     (3) Any district that levies pursuant to this subdivision 
shall certify the maximum levy allowable under section 124A.23, 
subdivisions 2 and 2a, in that same year. 
    Sec. 11.  Minnesota Statutes 1989 Supplement, section 
275.125, subdivision 9c, is amended to read: 
    Subd. 9c.  [1985 OPERATING DEBT LEVY.] (1) Each year, a 
district may levy to eliminate a deficit in the net 
unappropriated balance in the general fund of the district, 
determined as of June 30, 1985, and certified and adjusted by 
the commissioner.  Each year this levy may be an amount not to 
exceed the amount raised by a levy of a gross tax capacity rate 
of 1.20 percent times the adjusted gross tax capacity for taxes 
payable in 1990 or a net tax capacity rate of 1.50 1.85 percent 
times the adjusted net tax capacity for taxes payable in 1991 
and thereafter of the district for the preceding year.  However, 
the total amount of this levy for all years it is made shall not 
exceed the amount of the deficit in the net unappropriated 
balance in the general fund of the district as of June 30, 
1985.  When the cumulative levies made pursuant to this 
subdivision equal the total amount permitted by this 
subdivision, the levy shall be discontinued.  
    (2) A district, if eligible, may levy under this 
subdivision or subdivision 9b but not both. 
    (3) The proceeds of this levy shall be used only for cash 
flow requirements and shall not be used to supplement district 
revenues or income for the purposes of increasing the district's 
expenditures or budgets.  
    (4) Any district that levies pursuant to this subdivision 
shall certify the maximum levy allowable under section 124A.23, 
subdivision 2, in that same year. 
    Sec. 12.  Minnesota Statutes Second 1989 Supplement, 
section 275.125, subdivision 18, is amended to read: 
    Subd. 18.  [NOTICE OF CERTIFIED LEVIES LEVY INFORMATION.] 
By September 15 of each year each district shall notify the 
commissioner of education of the proposed levies in compliance 
with the levy limitations of this section and chapters 124 and, 
124A, and 124B.  By January 15 of each year each district shall 
notify the commissioner of education of the final levies 
certified.  The commissioner of education shall prescribe the 
form of these notifications and may request any additional 
information necessary to compute certified levy amounts. 

                               ARTICLE 11

                             MAXIMUM EFFORT
    Section 1.  [121.155] [JOINT POWERS AGREEMENTS FOR EDUCATIONAL 
FACILITIES.] 
    Any group of districts may form a joint powers district 
under section 471.59 representing all participating districts to 
build or acquire a facility to be used for instructional 
purposes.  The joint powers board must submit the project for 
review and comment under section 121.15.  The joint powers board 
must hold a hearing on the proposal.  The joint powers district 
must submit the question of authorizing the borrowing of funds 
for the project to the voters of the joint powers district at a 
special election.  The question submitted shall state the total 
amount of funding needed from all sources.  The joint powers 
board may issue the bonds according to chapter 475 and certify 
the levy required by section 475.61 only if a majority of those 
voting on the question vote in the affirmative and only after 
the school boards of each member district have adopted a 
resolution pledging the full faith and credit of that district.  
The resolution shall irrevocably commit that district to pay a 
proportionate share, based on pupil units, of any debt levy 
shortages that, together with other funds available, would allow 
the joint powers board to pay the principal and interest on the 
obligations.  The district's payment of its proportionate share 
of the shortfall shall be made from the district's capital 
expenditure fund.  The clerk of the joint powers board must 
certify the vote of the bond election to the commissioner of 
education. 
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
124.38, subdivision 7, is amended to read: 
    Subd. 7.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
effort debt service levy" means the lesser of: 
    (1) A levy in whichever of the following amounts is 
applicable: 
    (a) In any school district receiving a debt service loan 
for a debt service levy payable in 1991 and thereafter, or 
granted a capital loan after January 1, 1990, a levy in a total 
dollar amount computed at a rate of 20 percent of adjusted net 
tax capacity for taxes payable in 1991 and thereafter; 
    (b) In any school district granted a debt service loan 
after July 31, 1981, or granted a capital loan which is approved 
after July 31, 1981, a levy in a total dollar amount computed as 
a gross tax capacity rate of 13.08 percent on the adjusted gross 
tax capacity for taxes payable in 1990 or a net tax capacity 
rate of 16.27 18.42 percent on the adjusted net tax capacity for 
taxes payable in 1991 and thereafter; 
    (b) (c) In any school district granted a debt service loan 
before August 1, 1981, or granted a capital loan which was 
approved before August 1, 1981, a levy in a total dollar amount 
computed as a gross tax capacity rate of 12.26 percent on the 
adjusted gross tax capacity for taxes payable in 1990 or a net 
tax capacity rate of 15.26 17.17 percent on the adjusted net tax 
capacity for taxes payable in 1991 and thereafter, until and 
unless the district receives an additional loan; or 
    (2) A levy in whichever of the following amounts is 
applicable: 
    (a) In any school district which received a debt service or 
capital loan from the state before January 1, 1965, a levy in a 
total dollar amount computed as 4.10 mills on the market value 
in each year, unless the district applies or has applied for an 
additional loan subsequent to January 1, 1965, or issues or has 
issued bonds on the public market, other than bonds refunding 
state loans, subsequent to January 1, 1967; 
     (b) In any school district granted a debt service or 
capital loan between January 1, 1965, and July 1, 1969, a levy 
in a total dollar amount computed as 5-1/2 mills on the market 
value in each year, until and unless the district receives an 
additional loan; 
    (c) In any school district granted a debt service or 
capital loan between July 1, 1969, and July 1, 1975, a levy in a 
total dollar amount computed as 6.3 mills on market value in 
each year until and unless the district has received an 
additional loan; 
    (d) In any school district for which a capital loan was 
approved prior to August 1, 1981, a levy in a total dollar 
amount equal to the sum of the amount of the required debt 
service levy and an amount which when levied annually will in 
the opinion of the commissioner be sufficient to retire the 
remaining interest and principal on any outstanding loans from 
the state within 30 years of the original date when the capital 
loan was granted; provided, that the school board in any 
district affected by the provisions of clause (2)(d) may elect 
instead to determine the amount of its levy according to the 
provisions of clause (1); provided further that if a district's 
capital loan is not paid within 30 years because it elects to 
determine the amount of its levy according to the provisions of 
clause (2)(d), the liability of the district for the amount of 
the difference between the amount it levied under clause (2)(d) 
and the amount it would have levied under clause (1), and for 
interest on the amount of that difference, shall not be 
satisfied and discharged pursuant to Minnesota Statutes 1988, or 
an earlier edition of Minnesota Statutes if applicable, section 
124.43, subdivision 4. 
    Sec. 3.  Minnesota Statutes 1988, section 124.39, 
subdivision 3, is amended to read: 
    Subd. 3.  There shall be a capital loan account, out of 
which loans under section 124.43 5 shall be made.  There shall 
be transferred to it from the debt service loan account on 
October 1 of each year all moneys therein in excess of those 
required for debt service loans then agreed to be made.  There 
shall be transferred from it to the debt service loan account on 
July 1 of each year all moneys therein in excess of those 
required for capital loans theretofore agreed to be made.  
    Sec. 4.  Minnesota Statutes 1988, section 124.39, 
subdivision 4, is amended to read: 
    Subd. 4.  There shall be a loan repayment account, into 
which shall be paid all principal and interest paid by school 
districts on debt service loans and capital loans made under 
section 124.42 or 124.43 5.  The state's cost of administering 
the maximum effort school aid law shall be paid out of this 
account, to an amount not exceeding $10,000 in any year.  As 
soon as possible in each year after the committee has determined 
the ratio existing between the correct market value of all 
taxable property in each school district in the state and the 
"market value in money" of such property as recorded in 
accordance with section 270.13, the commissioner of revenue 
shall cause a list of all such ratios to be prepared.  The 
clerical costs of preparation of such list shall be paid as a 
cost of administration of the maximum effort school aid law. The 
documents division of the department of administration may 
publish and sell copies of such list.  There shall be 
transferred out of the loan repayment account to the state bond 
fund the sums required to pay the principal of and interest on 
all school loan bonds as provided in section 124.46. 
    Sec. 5.  [124.431] [CAPITAL LOANS.] 
    Subdivision 1.  [CAPITAL LOAN REQUESTS AND USES.] Capital 
loans are available only to qualifying districts.  Capital loans 
must not be used for the construction of swimming pools, ice 
arenas, athletic facilities, auditoriums, day care centers, bus 
garages, or heating system improvements.  Proceeds of the loans 
may be used only for sites for education facilities and for 
acquiring, bettering, furnishing, or equipping education 
facilities.  Contracts must be entered into within 18 months 
after the date on which each loan is granted. 
    Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
school district or a joint powers district that intends to apply 
for a capital loan must submit a proposal to the commissioner 
for review and comment according to section 121.15 on or before 
July 1.  The commissioner must prepare a review and comment on 
the proposed facility, regardless of the amount of the capital 
expenditure required to construct the facility.  In addition to 
the information provided under section 121.15, subdivision 7, 
the commissioner shall consider the following criteria in 
determining whether to make a positive review and comment.  
    (a) To grant a positive review and comment the commissioner 
must determine that all of the following conditions are met: 
    (1) the facilities are needed for pupils for whom no 
adequate facilities exist or will exist; 
    (2) the district will serve, on average, at least 80 pupils 
per grade or is eligible for sparsity revenue; 
    (3) no form of cooperation with another district would 
provide the necessary facilities; 
    (4) the facilities are comparable in size and quality to 
facilities recently constructed in other districts that have 
similar enrollments; 
    (5) the facilities are comparable in size and quality to 
facilities recently constructed in other districts that are 
financed without a capital loan; 
    (6) the district is projected to maintain or increase its 
average daily membership over the next five years or is eligible 
for sparsity revenue; 
    (7) the current facility poses a threat to the life, 
health, and safety of pupils, and cannot reasonably be brought 
into compliance with fire, health, or life safety codes; 
    (8) the district has made a good faith effort, as evidenced 
by its maintenance expenditures, to adequately maintain the 
existing facility during the previous ten years and to comply 
with fire, health, and life safety codes and state and federal 
requirements for handicapped accessibility; and 
    (9) evaluations by school boards of adjacent districts have 
been received. 
    (b) The commissioner may grant a negative review and 
comment if: 
    (1) the state demographer has examined the population of 
the communities to be served by the facility and determined that 
the communities have not grown during the previous five years; 
    (2) the state demographer determines that the economic and 
population bases of the communities to be served by the facility 
are not likely to grow or to remain at a level sufficient, 
during the next ten years, to ensure use of the entire facility; 
    (3) the need for facilities could be met within the 
district or adjacent districts at a comparable cost by leasing, 
repairing, remodeling, or sharing existing facilities or by 
using temporary facilities; 
    (4) the district plans do not include cooperation and 
collaboration with health and human services agencies and other 
political subdivisions; or 
    (5) if the application is for new construction, an existing 
facility that would meet the district's needs could be purchased 
at a comparable cost from any other source within the area. 
    Subd. 3.  [MULTIPLE DISTRICT PROPOSALS; REVIEW AND 
COMMENT.] In addition to the requirements of subdivision 2, the 
commissioner may use additional requirements to determine a 
positive review and comment on projects that are designed to 
serve more than one district.  These requirements may include:  
    (1) reducing or increasing the number of districts that 
plan to use the facility; 
    (2) location of the facility; and 
    (3) formation of a joint powers agreement among the 
participating districts.  
    Subd. 4.  [ADJACENT DISTRICT COMMENTS.] The district shall 
present the proposed project to the school board of each 
adjacent district at a public meeting of that district.  The 
board of an adjacent district shall make a written evaluation of 
how the project will affect the future education and building 
needs of the adjacent district.  The board shall submit the 
evaluation to the applying district within 30 days of the 
meeting. 
    Subd. 5.  [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 
school board of a district desiring a capital loan shall adopt a 
resolution stating the amount proposed to be borrowed, the 
purpose for which the debt is to be incurred, and an estimate of 
the dates when the facilities for which the loan is requested 
will be contracted for and completed.  Applications for loans 
must be accompanied by a copy of the adopted board resolution 
and copies of the adjacent district evaluations.  The evaluation 
shall be retained by the commissioner as part of a permanent 
record of the district submitting the evaluation. 
    Applications must be in the form and accompanied by the 
additional data required by the commissioner.  Applications must 
be received by the commissioner by November 1.  A district must 
resubmit an application each year.  Capital loan applications 
that do not receive voter approval or are not approved in law 
cancel July 1 of the year following application.  When an 
application is received, the commissioner shall obtain from the 
commissioner of revenue the information in the revenue 
department's official records that is required to be used in 
computing the debt limit of the district under section 475.53, 
subdivision 4. 
    Subd. 6.  [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 
January 1 of each year, the state board must review all 
applications for capital loans that have received a positive 
review and comment.  When reviewing applications, the state 
board shall consider whether the criteria in subdivision 2 have 
been met.  The state board may not approve an application if all 
of the required deadlines have not been met.  The state board 
may either approve or reject an application for a capital loan. 
    Subd. 7.  [RECOMMENDATIONS OF THE COMMISSIONER.] The 
commissioner shall examine and consider applications for capital 
loans that have been approved by the state board of education, 
and promptly notify any district rejected by the state board of 
the state board's decision.  
    The commissioner shall report each capital loan that has 
been approved by the state board and that has received voter 
approval to the education committees of the legislature by 
February 1 of each year.  The commissioner must not report a 
capital loan that has not received voter approval.  The 
commissioner shall also report on the money remaining in the 
capital loan account and, if necessary, request that another 
bond issue be authorized. 
    Subd. 8.  [LOAN AMOUNT LIMITS.] (a) A loan must not be 
recommended for approval for a district exceeding an amount 
computed as follows: 
    (1) the amount requested by the district under subdivision 
5; 
    (2) plus the aggregate principal amount of general 
obligation bonds of the district outstanding on June 30 of the 
year following the year the application was received, not 
exceeding the limitation on net debt of the district in section 
475.53, subdivision 4, or 305 percent of its adjusted net tax 
capacity as most recently determined, whichever is less; 
    (3) less the maximum net debt permissible for the district 
on December 1 of the year the application is received, under the 
limitation in section 475.53, subdivision 4, or 305 percent of 
its adjusted net tax capacity as most recently determined, 
whichever is less; 
    (4) less any amount by which the amount voted exceeds the 
total cost of the facilities for which the loan is granted.  
    (b) The loan may be approved in an amount computed as 
provided in paragraph (a), clauses (1) to (3), subject to later 
reduction according to paragraph (a), clause (4). 
    Subd. 9.  [LEGISLATIVE ACTION.] Each capital loan must be 
approved in a law. 
    If the aggregate amount of the capital loans exceeds the 
amount that is or can be made available, the commissioner shall 
allot the available amount among any number of qualified 
applicant districts, according to the commissioner's judgment 
and discretion, based upon the districts' respective needs. 
    Subd. 10.  [DISTRICT REFERENDUM.] After receipt of the 
review and comment on the project and before February 1, the 
question authorizing the borrowing of money for the facilities 
must be submitted by the school board to the voters of the 
district at a regular or special election.  The question 
submitted must state the total amount to be borrowed from all 
sources.  Approval of a majority of those voting on the question 
is sufficient to authorize the issuance of the obligations on 
public sale in accordance with chapter 475.  The face of the 
ballot must include the following statement:  "APPROVAL OF THIS 
QUESTION DOES NOT GUARANTEE THAT THE SCHOOL DISTRICT WILL 
RECEIVE A CAPITAL LOAN FROM THE STATE.  THE LOAN MUST BE 
APPROVED BY THE STATE LEGISLATURE AND IS DEPENDENT ON AVAILABLE 
FUNDING."  The district shall mail to the commissioner of 
education a certificate by the clerk showing the vote at the 
election.  
    Subd. 11.  [CONTRACT.] Each capital loan must be evidenced 
by a contract between the school district and the state acting 
through the commissioner.  The contract must obligate the state 
to reimburse the district, from the maximum effort school loan 
fund, for eligible capital expenses for construction of the 
facility for which the loan is granted, an amount computed as 
provided in subdivision 8.  The commissioner must receive from 
the school district a certified resolution of the school board 
estimating the costs of construction and reciting that contracts 
for construction of the facilities for which the loan is granted 
have been awarded and that bonds of the district have been 
issued and sold in the amount necessary to pay all estimated 
costs of construction in excess of the amount of the loan.  The 
contract must obligate the district to repay the loan out of the 
excesses of its maximum effort debt service levy over its 
required debt service levy, including interest at a rate equal 
to the weighted average annual rate payable on Minnesota state 
school loan bonds issued for the project and disbursed to the 
districts on a reimbursement basis, but in no event less than 
3-1/2 percent per year on the principal amount from time to time 
unpaid.  The district shall each year, as long as it is indebted 
to the state, levy for debt service (a) the amount of its 
maximum effort debt service levy or (b) the amount of its 
required debt service levy, whichever is greater, except as the 
required debt service levy may be reduced by a loan under 
section 124.42.  On November 20 of each year each district 
having an outstanding capital loan shall compute the excess 
amount in the debt redemption fund.  The commissioner shall 
prescribe the form and calculation to be used in computing the 
excess amount.  A completed copy of this form shall be sent to 
the commissioner before December 1 of each year.  The 
commissioner may recompute the excess amount and shall promptly 
notify the district of the recomputed amount.  On December 15 of 
each year, the district shall remit to the commissioner an 
amount equal to the excess amount in the debt redemption fund.  
When the maximum effort debt service levy is greater, the 
district shall remit to the commissioner within ten days after 
its receipt of the last regular tax distribution in each year, 
that part of the debt service tax collections, including 
penalties and interest that exceeded the required debt service 
levy.  The commissioner shall supervise the collection of 
outstanding accounts due the fund and may, by notice to the 
proper county auditor, require the maximum levy to be made as 
required in this subdivision.  Interest on capital loans must be 
paid on December 15 of the year after the year the loan is 
granted and annually in later years.  On or before September 1 
in each year the commissioner shall notify the county auditor of 
each county containing taxable property situated within the 
school district of the amount of the maximum effort debt service 
levy of the district for that year.  The county auditor or 
auditors shall extend upon the tax rolls an ad valorem tax upon 
all taxable property within the district in the aggregate amount 
so certified. 
    Subd. 12.  [LOAN FORGIVENESS.] If any capital loan is not 
paid within 50 years after it is granted from maximum effort 
debt service levies in excess of required debt service levies, 
the liability of the school district on the loan is satisfied 
and discharged and interest on the loan ceases. 
    Subd. 13.  [PARTICIPATION BY COUNTY AUDITOR; RECORD OF 
CONTRACT; PAYMENT OF LOAN.] The school district shall file a 
copy of the capital loan contract with the county auditor of 
each county in which any part of the district is situated.  The 
county auditor shall enter the capital loan, evidenced by the 
contract, in the auditor's bond register.  The commissioner 
shall keep a record of each capital loan and contract showing 
the name and address of the district, the date of the contract, 
and the amount of the loan initially approved.  On receipt of 
the resolution required in subdivision 11, the commissioner 
shall issue warrants, which may be dispersed in accordance with 
the schedule in the contract, on the capital loan account for 
the amount that may be disbursed under subdivision 1.  Interest 
on each disbursement of the capital loan amount accrues from the 
date on which the state treasurer issues the warrant. 
    Subd. 14.  [BOND SALE LIMITATIONS.] A district having an 
outstanding state loan must not issue and sell any bonds on the 
public market, except to refund state loans, unless it agrees to 
make the maximum effort debt service levy in each later year at 
the higher rate provided in section 124.38, subdivision 7, and 
unless it schedules the maturities of the bonds according to 
section 475.54, subdivision 2.  The district shall report each 
sale to the commissioner of education. 
    After a district's capital loan has been outstanding for 20 
years, the district must not issue bonds on the public market 
except to refund the loan. 
    Sec. 6.  Minnesota Statutes 1988, section 475.51, 
subdivision 4, is amended to read: 
    Subd. 4.  "Net debt" means the amount remaining after 
deducting from its gross debt the amount of current revenues 
which are applicable within the current fiscal year to the 
payment of any debt and the aggregate of the principal of the 
following: 
    (1) Obligations issued for improvements which are payable 
wholly or partly from the proceeds of special assessments levied 
upon property specially benefited thereby, including those which 
are general obligations of the municipality issuing them, if the 
municipality is entitled to reimbursement in whole or in part 
from the proceeds of the special assessments. 
    (2) Warrants or orders having no definite or fixed maturity.
    (3) Obligations payable wholly from the income from revenue 
producing conveniences. 
    (4) Obligations issued to create or maintain a permanent 
improvement revolving fund. 
    (5) Obligations issued for the acquisition, and betterment 
of public waterworks systems, and public lighting, heating or 
power systems, and of any combination thereof or for any other 
public convenience from which a revenue is or may be derived. 
    (6) Debt service loans and capital loans made to a school 
district under the provisions of sections 124.42 and 124.43 5. 
    (7) Amount of all money and the face value of all 
securities held as a debt service fund for the extinguishment of 
obligations other than those deductible under this subdivision. 
    (8) Obligations to repay loans made under section 216C.37.  
    (9) Obligations to repay loans made from money received 
from litigation or settlement of alleged violations of federal 
petroleum pricing regulations. 
    (10) All other obligations which under the provisions of 
law authorizing their issuance are not to be included in 
computing the net debt of the municipality. 
    Sec. 7.  Minnesota Statutes 1989 Supplement, section 
475.62, is amended to read: 
    475.62 [REGISTER.] 
    Each county auditor shall keep a register in which shall be 
entered, as to each issue of such obligations by any 
municipality located, in whole or in part, in the county, a 
record of the aggregate amount authorized, the aggregate amount 
issued, the purpose for which issued, the number, denomination, 
date, and maturity of each, the rate of interest, the time of 
payment, the place of payment of principal and interest, and the 
amount of tax levied for the payment thereof.  The auditor shall 
also enter in said register the date and amount of each debt 
service loan and capital loan made by the state to any school 
district situated wholly or partly within the county, in 
accordance with section 124.42, subdivision 2, or section 124.43 
5, subdivision 5 13, and shall enter on or before November 1 in 
each year thereafter the amount of the maximum effort debt 
service levy and the additional amount of the levy for interest 
on state loans to be extended on the tax rolls in that year, as 
certified by the commissioner of education in accordance with 
section 124.42, subdivision 4, and section 124.43 5, subdivision 
4 11.  In each such year the auditor shall extend on the tax 
rolls against all taxable property within each such district 
either (a) the aggregate amount of all tax levies required by 
section 475.61 to be so extended in such year, less the 
principal amount of any new debt service loan granted in the 
current year, or (b) the maximum effort debt service levy of the 
district as certified by the commissioner of education, if 
greater than the levy required by the preceding clause (a); 
adding in either case (c) the amount of the levy for interest on 
state loans as certified by the commissioner of education, 
including interest on any new debt service loan granted in the 
current year.  If the school district is situated in more than 
one county, the aggregate levy shall be apportioned among the 
counties as provided in section 475.61, subdivision 2, by the 
county auditor of the county in which is situated the largest 
portion by net tax capacity of the taxable property within the 
school district. 
    Sec. 8.  [1990 LOAN APPLICATIONS.] 
    Notwithstanding section 5, subdivision 5, or any other law 
to the contrary, a capital loan application and the state board 
approval of a capital loan for independent school districts No. 
115, Cass Lake; No. 192, Farmington; No. 213, Osakis; No. 345, 
New London-Spicer; No. 390, Lake of the Woods; No. 484, Pierz; 
No. 533, Dover-Eyota; No. 682, Roseau; No. 748, Sartell; and No. 
885, St. Michael-Albertville, does not cancel until July 1, 
1995.  Applications for capital loans approved by the state 
board before February 15, 1990, for the school districts listed 
do not need to meet the criteria in section 5, subdivision 2.  
Except for emergency requests, the school districts listed in 
this section shall be the top priority for funding capital loans 
until July 1, 1995. 
    Sec. 9.  [HOLDINGFORD CAPITAL LOAN.] 
    Subdivision 1.  [TIME EXTENSION.] Notwithstanding Minnesota 
Statutes, section 124.43, subdivision 1, independent school 
district No. 738, Holdingford, may enter into construction 
contracts for facilities for which a capital loan was granted 
within 24 months after the date the capital loan was granted.  
    Subd. 2.  [LOCAL APPROVAL.] Subdivision 1 is effective for 
independent school district No. 738 the day following compliance 
with Minnesota Statutes, section 645.021, subdivision 3, by the 
school board of the district. 
    Sec. 10.  [ALTERNATIVE LOAN LIMITATION.] 
    Notwithstanding section 5, subdivision 8, a maximum effort 
loan amount computed under section 5, subdivision 8, for 
districts listed in section 8 shall not be less than 85 percent 
of the loan amount that would be granted if the qualifying 
percentage rate used was 245 percent of adjusted net tax 
capacity.  
    Sec. 11.  [REPEALER.] 
    Minnesota Statutes 1988, section 124.43, subdivisions 2, 3, 
3a, 3b, 4, 5, and 6; and Minnesota Statutes 1989 Supplement, 
section 124.43, subdivision 1, are repealed.  The validity of 
bonds issued to fund loans issued under Minnesota Statutes 1988, 
section 124.43 or earlier law is not impaired.  Districts 
obligated under contracts entered into under Minnesota Statutes 
1988, section 124.43 or earlier law remain obligated until the 
obligations end under the terms of the contract.  Section 10 is 
repealed July 1, 1995. 
    Sec. 12.  [EFFECTIVE DATE.] 
    Sections 1 to 11 are effective the day after final 
enactment. 

                               ARTICLE 12

                           RURAL HEALTH CARE
    Section 1.  [SUMMER HEALTH CARE INTERNS.] 
    Subdivision 1.  [SUMMER INTERNSHIPS.] The commissioner of 
education shall award grants to eligible districts or groups of 
districts to establish a summer health care intern program in 
the summer of 1991 for pupils who intend to complete high school 
graduation requirements and who are between their junior year 
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.] The commissioner, with the advice of 
the Minnesota medical association and the Minnesota hospital 
association, shall establish criteria for awarding grants to 
districts or groups of districts that have juniors enrolled in 
high school who are interested in pursuing a career in the 
health care profession.  The criteria must include, among other 
things: 
    (1) the proximity of a district or districts to a hospital 
or clinic willing to participate in the program; 
    (2) the kinds of formal exposure to the health care 
profession a hospital or clinic can provide to a pupil; 
    (3) the need for health care professionals in a particular 
area; and 
    (4) the willingness of a hospital or clinic to pay one-half 
the costs of employing a pupil. 
    The Minnesota medical association and the Minnesota 
hospital association jointly must provide the commissioner by 
January 31, 1991, 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 
districts or groups of districts 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. 
    Subd. 4.  [EVALUATION.] The commissioner, in cooperation 
with the Minnesota medical association and the Minnesota 
hospital association, shall evaluate the summer health care 
intern program and recommend to the education committees of the 
legislature by February 15, 1992, whether or not the program 
should be continued and, if so, under what circumstances.  
    Sec. 2.  [APPROPRIATION.] 
    $100,000 is appropriated from the general fund to the 
department of education in fiscal year 1991 to provide grants 
for the summer health care intern program under section 1. 
    Presented to the governor April 26, 1990 
    Signed by the governor April 27, 1990, 9:52 a.m.

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